Investar Holding (ISTR) 10-Q 6 Aug 20 2020 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2020	Aug. 03, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-36522
Entity Registrant Name	Investar Holding Corp
Entity Incorporation, State or Country Code	LA
Entity Tax Identification Number	27-1560715
Entity Address, Address Line One	10500 Coursey Boulevard
Entity Address, City or Town	Baton Rouge
Entity Address, State or Province	LA
Entity Address, Postal Zip Code	70816
City Area Code	225
Local Phone Number	227-2222
Title of 12(b) Security	Common stock, $1.00 par value per share
Trading Symbol	ISTR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,840,619
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001602658
Current Fiscal Year End Date	--12-31

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 31,725	$ 23,769
Interest-bearing balances due from other banks	99,239	20,539
Federal funds sold	0	387
Cash and cash equivalents	130,964	44,695
Available for sale securities at fair value (amortized cost of $242,175 and $258,104, respectively)	246,886	259,805
Held to maturity securities at amortized cost (estimated fair value of $14,265 and $14,480, respectively)	14,053	14,409
Loans, net of allowance for loan losses of $16,657 and $10,700, respectively	1,797,314	1,681,275
Equity securities	19,398	19,315
Bank premises and equipment, net of accumulated depreciation of $14,022 and $12,432, respectively	56,767	50,916
Other real estate owned, net	69	133
Accrued interest receivable	13,701	7,913
Deferred tax asset	1,515	0
Goodwill and other intangible assets, net	32,715	31,035
Bank owned life insurance	38,437	32,014
Other assets	7,544	7,406
Total assets	2,359,363	2,148,916
Deposits:
Noninterest-bearing	469,095	351,905
Interest-bearing	1,420,493	1,355,801
Total deposits	1,889,588	1,707,706
Advances from Federal Home Loan Bank	158,500	131,600
Repurchase agreements	4,908	2,995
Subordinated debt, net of unamortized issuance costs	42,854	42,826
Junior subordinated debt	5,923	5,897
Accrued taxes and other liabilities	20,884	15,916
Total liabilities	2,122,657	1,906,940
STOCKHOLDERS’ EQUITY
Preferred stock, no par value per share; 5,000,000 shares authorized	0	0
Common stock, $1.00 par value per share; 40,000,000 shares authorized; 10,839,977 and 11,228,775 shares issued and outstanding, respectively	10,840	11,229
Surplus	161,729	168,658
Retained earnings	63,767	60,198
Accumulated other comprehensive income	370	1,891
Total stockholders’ equity	236,706	241,976
Total liabilities and stockholders’ equity	$ 2,359,363	$ 2,148,916

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Available-for-sale securities at fair value, amortized cost	$ 242,175	$ 258,104
Held-to-maturity securities at amortized cost, estimated fair value	14,265	14,480
Ending allowance balance for loans acquired with deteriorated credit quality	16,657	10,700
Bank premises and equipment, accumulated depreciation	$ 14,022	$ 12,432
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	10,839,977	11,228,775
Common stock, shares outstanding (in shares)	10,839,977	11,228,775

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
INTEREST INCOME
Interest and fees on loans	$ 22,118	$ 20,233	$ 43,787	$ 38,777
Interest on investment securities	1,455	1,923	3,150	3,849
Other interest income	229	232	486	448
Total interest income	23,802	22,388	47,423	43,074
INTEREST EXPENSE
Interest on deposits	4,190	4,684	9,222	8,790
Interest on borrowings	1,273	1,373	2,527	2,797
Total interest expense	5,463	6,057	11,749	11,587
Net interest income	18,339	16,331	35,674	31,487
Provision for loan losses	2,500	369	6,260	634
Net interest income after provision for loan losses	15,839	15,962	29,414	30,853
NONINTEREST INCOME
Service charges on deposit accounts	405	434	976	834
Gain on sale of investment securities, net	1,178	227	1,350	229
Loss on sale of fixed assets, net	0	(11)	0	(11)
Gain on sale of other real estate owned, net	0	13	26	18
Servicing fees and fee income on serviced loans	96	150	216	330
Interchange fees	347	291	642	531
Income from bank owned life insurance	233	170	423	322
Change in the fair value of equity securities	248	57	(578)	229
Other operating income	1,424	411	1,965	541
Total noninterest income	3,931	1,742	5,020	3,023
Income before noninterest expense	19,770	17,704	34,434	33,876
NONINTEREST EXPENSE
Depreciation and amortization	1,149	873	2,182	1,637
Salaries and employee benefits	8,572	7,077	16,525	13,492
Occupancy	536	454	1,067	868
Data processing	786	644	1,479	1,180
Marketing	78	68	110	119
Professional fees	429	309	823	614
Acquisition expense	255	0	1,006	905
Other operating expenses	2,675	2,129	5,195	4,042
Total noninterest expense	14,480	11,554	28,387	22,857
Income before income tax expense	5,290	6,150	6,047	11,019
Income tax expense	1,016	1,216	1,165	2,168
Net income	$ 4,274	$ 4,934	$ 4,882	$ 8,851
EARNINGS PER SHARE
Basic earnings per share (in dollars per share)	$ 0.39	$ 0.49	$ 0.44	$ 0.89
Diluted earnings per share (in dollars per share)	0.39	0.48	0.44	0.88
Cash dividends declared per common share (in dollars per share)	$ 0.06	$ 0.0551	$ 0.12	$ 0.1076

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 4,274	$ 4,934	$ 4,882	$ 8,851
Unrealized gain (loss) on investment securities:
Unrealized gain, available for sale, net of tax expense of $766, $710, $916 and $1,298, respectively	2,883	2,672	3,445	4,884
Reclassification of realized gain, net of tax expense of $247, $48, $283 and $48, respectively	(931)	(179)	(1,067)	(181)
Unrealized loss, transfer from available for sale to held to maturity, net of tax benefit of $0 for all respective periods	(1)	0	(1)	0
Fair value of derivative financial instruments:
Change in fair value of interest rate swaps designated as a cash flow hedge, net of tax benefit of $369, $66, $1,036 and $110, respectively	1,387	247	3,898	414
Total other comprehensive income (loss)	564	2,246	(1,521)	4,289
Total comprehensive income	$ 4,838	$ 7,180	$ 3,361	$ 13,140

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Unrealized gain, available for sale, tax expense (benefit)	$ 766	$ 710	$ 916	$ 1,298
Reclassification of realized gain, net of tax expense of $247, $48, $283 and $48, respectively	247	48	283	48
Unrealized loss, transfer from available for sale to held to maturity, tax benefit	0	0	0	0
Change in fair value of interest rate swaps designated as a cash flow hedge, net of tax benefit of $369, $66, $1,036 and $110, respectively	$ 369	$ 66	$ 1,036	$ 110

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Surplus	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning of Period at Dec. 31, 2018	$ 182,262	$ 9,484	$ 130,133	$ 45,721	$ (3,076)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued in acquisition	18,637	764	17,873
Surrendered shares	(273)	(11)	(262)
Options exercised	28	2	26
Dividends declared	(1,080)			(1,080)
Stock-based compensation	682	40	642
Shares repurchased	(7,897)	(341)	(7,556)
Net income	8,851			8,851
Other comprehensive income (loss), net	4,289				4,289
End of Period at Jun. 30, 2019	205,499	9,938	140,856	53,492	1,213
Beginning of Period at Mar. 31, 2019	203,014	10,130	144,813	49,104	(1,033)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Surrendered shares	(41)	(2)	(39)
Options exercised	28	2	26
Dividends declared	(546)			(546)
Stock-based compensation	393	5	388
Shares repurchased	(4,529)	(197)	(4,332)
Net income	4,934			4,934
Other comprehensive income (loss), net	2,246				2,246
End of Period at Jun. 30, 2019	205,499	9,938	140,856	53,492	1,213
Beginning of Period at Dec. 31, 2019	241,976	11,229	168,658	60,198	1,891
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issuance costs	(45)		(45)
Surrendered shares	(308)	(15)	(293)
Options exercised	46	3	43
Dividends declared	(1,313)			(1,313)
Stock-based compensation	832	52	780
Shares repurchased	(7,843)	(429)	(7,414)
Net income	4,882			4,882
Other comprehensive income (loss), net	(1,521)				(1,521)
End of Period at Jun. 30, 2020	236,706	10,840	161,729	63,767	370
Beginning of Period at Mar. 31, 2020	233,272	10,940	162,380	60,146	(194)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Surrendered shares	(16)	(2)	(14)
Dividends declared	(653)			(653)
Stock-based compensation	449	4	445
Shares repurchased	(1,184)	(102)	(1,082)
Net income	4,274			4,274
Other comprehensive income (loss), net	564				564
End of Period at Jun. 30, 2020	$ 236,706	$ 10,840	$ 161,729	$ 63,767	$ 370

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per common share (in dollars per share)	$ 0.06	$ 0.0551	$ 0.12	$ 0.1076

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities
Net income	$ 4,882	$ 8,851
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,182	1,637
Provision for loan losses	6,260	634
Amortization of purchase accounting adjustments	(705)	(791)
Net amortization of securities	1,113	(21)
Gain on sale of investment securities, net	(1,350)	(229)
Loss on sale of fixed assets, net	0	11
Gain on sale of other real estate owned, net	(26)	(18)
FHLB stock dividend	(754)	(172)
Stock-based compensation	832	682
Deferred taxes	(866)	281
Net change in value of bank owned life insurance	(423)	(322)
Amortization of subordinated debt issuance costs	28	23
Change in the fair value of equity securities	578	(229)
Net change in:
Accrued interest receivable	(5,788)	(1,081)
Other assets	(713)	(489)
Accrued taxes and other liabilities	(1,085)	3,064
Net cash provided by operating activities	4,165	11,831
Cash flows from investing activities:
Proceeds from sales of investment securities available for sale	40,538	62,564
Purchases of securities available for sale	(52,888)	(80,170)
Proceeds from maturities, prepayments and calls of investment securities available for sale	28,530	18,825
Proceeds from maturities, prepayments and calls of investment securities held to maturity	343	572
Proceeds from redemption or sale of equity securities	2,371	0
Purchase of equity securities	(2,277)	0
Net increase in loans	(77,570)	(59,420)
Proceeds from sales of other real estate owned	131	3,507
Purchases of fixed assets	(4,972)	(3,510)
Purchase of bank owned life insurance	(6,000)	(5,023)
Purchase of other investments	0	(95)
Distributions from investments	14	51
Cash acquired from acquisition of Mainland Bank	0	38,365
Cash paid for acquisition PlainsCapital branches, net of cash acquired	(10,761)	0
Net cash used in investing activities	(82,541)	(24,334)
Cash flows from financing activities:
Net increase in customer deposits	145,013	82,872
Net increase (decrease) in repurchase agreements	1,913	(4,808)
Net increase in short-term FHLB advances	30,000	2,100
Repayment of long-term FHLB advances	(3,100)	(12,000)
Cash dividends paid on common stock	(1,339)	(1,013)
Proceeds from stock options and warrants exercised	46	28
Payments to repurchase common stock	(7,843)	(7,897)
Payment of stock issuance costs	(45)	0
Net cash provided by financing activities	164,645	59,282
Net change in cash and cash equivalents	86,269	46,779
Cash and cash equivalents, beginning of period	44,695	17,140
Cash and cash equivalents, end of period	$ 130,964	$ 63,919

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements of Investar Holding Corporation (the “Company”) have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include information or footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with GAAP. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three and six month periods ended June 30, 2020 are not necessarily indicative of the results that may be expected for the entire fiscal year. These statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2019, including the notes thereto, which were included as part of the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 13, 2020. Nature of Operations The Company, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, National Association (the “Bank”), a national bank, primarily to meet the needs of individuals and small to medium-sized businesses. The Company’s primary markets are south Louisiana, southeast Texas and west Alabama. At June 30, 2020, the Company operated 24 full service branches located in Louisiana, five full service branches located in Texas and two full service branches in southwest Alabama and had 336 employees. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences could be material. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the allowance for loan losses may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. Other estimates that are susceptible to significant change in the near term relate to the determination of other-than-temporary impairments of securities, and the fair value of financial instruments and goodwill. The ongoing COVID-19 pandemic has made certain estimates more challenging, including those discussed above, as the pandemic is unprecedented in recent history, continues to evolve, and its future effects are impossible to predict with any certainty. Investment Securities The Company’s investments in debt securities are accounted for in accordance with applicable guidance contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), which requires the classification of securities into one of the following categories: • Securities to be held to maturity (“HTM”): bonds, notes, and debentures for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. • Securities available for sale (“AFS”): available for sale securities consist of bonds, notes, and debentures that are available to meet the Company’s operating needs. These securities are reported at fair value. Unrealized holding gains and losses, net of tax, on AFS debt securities are reported as a net amount in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Realized gains and losses on the sale of debt securities are determined using the specific-identification method. The Company follows FASB guidance related to the recognition and presentation of other-than-temporary impairment. The guidance specifies that if an entity does not have the intent to sell a debt security and it is not more likely than not that the Company will be required to sell the security prior to recovery, the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more likely than not that the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. Equity Securities The Company is a member of the Federal Home Loan Bank (“FHLB”) system. Members of the FHLB are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, is restricted as to redemption, and is periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Equity securities also include investments in our other correspondent banks including Independent Bankers Financial Corporation and First National Bankers Bank stock. These investments are carried at cost which approximates fair value. The balance of equity securities in our correspondent banks at June 30, 2020 and December 31, 2019 was $16.9 million and $17.2 million, respectively. In addition, equity securities include marketable securities in corporate stocks and mutual funds and totaled $2.5 million and $2.1 million at June 30, 2020 and December 31, 2019, respectively. Loans The Company’s loan portfolio categories include real estate, commercial and consumer loans. Real estate loans are further categorized into construction and development, 1-4 family residential, multifamily, farmland and commercial real estate loans. The consumer loan category includes loans originated through indirect lending. Indirect lending, which is lending initiated through third-party business partners, is largely comprised of loans made through automotive dealerships. Loans for which management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off are stated at unpaid principal balances, adjusted by an allowance for loan losses. Interest on loans is calculated by using the simple interest method on daily balances of the principal amount outstanding. Loans are ordinarily placed on nonaccrual when a loan is specifically determined to be impaired or when principal or interest is delinquent for 90 days or more; however, management may elect to continue the accrual when the estimated net realizable value of collateral is sufficient to cover the principal balance and the accrued interest. Any unpaid interest previously accrued on nonaccrual loans is reversed from income. Interest income, generally, is not recognized on specific impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are applied as a reduction of the loan principal balance. Interest income on other nonaccrual loans is recognized only to the extent of interest payments received. A loan may be returned to accrual status when all the principal and interest amounts contractually due are brought current and future principal and interest amounts contractually due are reasonably assured, which is typically evidenced by a sustained period of repayment performance by the borrower. The Company considers a loan to be impaired when, based upon current information and events, it believes it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. The Company’s impaired loans include troubled debt restructurings and performing and non-performing loans for which full payment of principal or interest is not expected. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. The Company calculates an allowance required for impaired loans based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of its collateral. If the recorded investment in the impaired loan exceeds the measure of fair value, a valuation allowance is required as a component of the allowance for loan losses. Changes to the valuation allowance are recorded as a component of the provision for loan losses. See the Treatment of Loan Modifications Pursuant to the CARES Act and Interagency Statement section under Accounting Standards Adopted in 2020 below for further discussion on the accounting treatment for loans. The Company follows the FASB accounting guidance on sales of financial assets, which includes participating interests in loans. For loan participations that are structured in accordance with this guidance, the sold portions are recorded as a reduction of the loan portfolio. Loan participations that do not meet the criteria are accounted for as secured borrowings. Allowance for Loan Losses The adequacy of the allowance for loan losses is determined in accordance with GAAP. The allowance for loan losses is estimated through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. The allowance is an amount that management believes will be adequate to absorb probable losses inherent in the loan portfolio as of the balance sheet date based on evaluations of the collectability of loans and prior loan loss experience. The evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, and current economic conditions that may affect the borrower’s ability to pay. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. Allowances for impaired loans are generally determined based on collateral values or the present value of estimated cash flows. Credits deemed uncollectible are charged to the allowance. Provisions for loan losses and recoveries on loans previously charged off are added to the allowance. Past due status is determined based on contractual terms. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. Based on management’s review and observations made through qualitative review, management may apply qualitative adjustments to determine loss estimates at a group and/or portfolio segment level as deemed appropriate. Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in its portfolio and portfolio segments. The Company utilizes an internally developed model that requires judgment to determine the estimation method that fits the credit risk characteristics of the loans in its portfolio and portfolio segments. Qualitative and environmental factors that may not be directly reflected in quantitative estimates include: asset quality trends, changes in loan concentrations, new products and process changes, changes and pressures from competition, changes in lending policies and underwriting practices, trends in the nature and volume of the loan portfolio, changes in experience and depth of lending staff and management and national and regional economic trends. Changes in these factors are considered in determining changes in the allowance for loan losses. The impact of these factors on the Company’s qualitative assessment of the allowance for loan losses can change from period to period based on management’s assessment of the extent to which these factors are already reflected in historic loss rates. The uncertainty inherent in the estimation process is also considered in evaluating the allowance for loan losses. In the ordinary course of business, the Bank enters into commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan losses. The reserve for unfunded lending commitments is included in accrued taxes and other liabilities in the consolidated balance sheet. At June 30, 2020 and December 31, 2019 the reserve for unfunded loan commitments was $0.3 million and $0.1 million, respectively. Acquisition Accounting Business combinations are accounted for under the acquisition method of accounting. Purchased assets and assumed liabilities are recorded at their respective acquisition date fair values, and identifiable intangible assets are recorded at fair value. If the consideration given exceeds the fair value of the net assets received, goodwill is recognized. If the fair value of the net assets received exceeds the consideration given, a bargain purchase gain is recognized. Fair values are subject to refinement for up to one year after the closing date of an acquisition as information relative to closing date fair values becomes available. Loans acquired in a business combination are recorded at their estimated fair value as of the acquisition date. The fair value of loans acquired is determined using a discounted cash flow model based on assumptions regarding the amount and timing of principal and interest prepayments, estimated payments, estimated default rates, estimated loss severity in the event of defaults, and current market rates. Estimated credit losses are included in the determination of fair value; therefore, an allowance for loan losses is not recorded on the acquisition date. The fair value adjustment is amortized over the life of the loan using the effective interest method, except for those loans accounted for under ASC Topic 310-30, discussed below. An allowance for acquired loans not accounted for under ASC Topic 310-30 is only recorded to the extent that the reserve requirement exceeds the remaining fair value adjustment. The Company accounts for acquired impaired loans under ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”). An acquired loan is considered impaired when there is evidence of credit deterioration since origination and it is probable, at the date of acquisition, that we will be unable to collect all contractually required payments. ASC 310-30 prohibits the carryover of an allowance for loan losses for acquired impaired loans. Over the life of the acquired loans, we continually estimate the cash flows expected to be collected on individual loans or on pools of loans sharing common risk characteristics. As of the end of each fiscal quarter, we evaluate the present value of the acquired loans using the effective interest rates. For any increases in cash flows expected to be collected, we adjust the amount of accretable yield recognized on a prospective basis over the loan’s or pool’s remaining life, while we recognize a provision for loan loss in the consolidated statement of operations if the cash flows expected to be collected have decreased. Reclassifications Certain reclassifications have been made to the 2019 financial statements to be consistent with the 2020 presentation, if applicable. Concentrations of Credit Risk The Company’s loan portfolio consists of the various types of loans described in Note 5. Loans and Allowance for Loan Losses. Real estate or other assets secure most loans. The majority of loans have been made to individuals and businesses in the Company’s market of southeast Louisiana. Customers are dependent on the condition of the local economy for their livelihoods and servicing their loan obligations. The Company does not have any significant concentrations in any one industry or individual customer. Accounting Standards Adopted in 2020 FASB ASC Topic 820 “Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” Update No. 2018-13 . ASU 2018-13 became effective for the Company on January 1, 2020. The ASU modifies the existing guidance on disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. ASU 2018-13 removes the disclosure requirement detailing the amount of and reasons for transfers between Level 1 and Level 2 and the valuation processes for Level 3 fair value measurements. In addition, this ASU modifies the disclosure requirement for investments in certain entities that calculate net asset value. Lastly, ASU 2018-13 adds a disclosure requirement for changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. The impact of these amendments is limited to presentation and disclosure changes that did not have an impact on the Company’s consolidated financial statements. FASB ASC Topic 350 “Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment” ASU No. 2017-04. ASU 2017-04 became effective for the Company on January 1, 2020. The ASU simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Therefore, any carrying amount which exceeds the reporting unit’s fair value, up to the amount of goodwill recorded, will be recognized as an impairment loss. The amendment will be applied prospectively on or after the effective date. Based on recent annual goodwill impairments tests, performed in the fourth quarter of each year, which did not require the application of Step 2, the adoption of this ASU did not have a material impact. At March 31, 2020, we evaluated potential triggering events that may be indicators that our goodwill was impaired. The events included economic disruption and uncertainty surrounding the COVID-19 pandemic and the associated volatility in the financial markets which caused a significant decline in our market capitalization. As a result of the significant decline in our market capitalization in the first quarter of 2020, we performed an interim goodwill impairment test as of March 31, 2020. Factors considered in our impairment evaluation included the uncertainty related to the pandemic’s impact on our business and our customers’ businesses, the Company’s revised financial forecast in light of current market conditions, and changes in discount rates as a result of uncertainty in the market. Based on our evaluation, we concluded that our goodwill was not impaired as of March 31, 2020. As the economic disruption and uncertainty surrounding the COVID-19 pandemic, as well as the associated volatility in the financial markets continued through the second quarter of 2020, management continued to evaluate goodwill impairment indicators as of June 30, 2020. Based upon management’s procedures, including an assessment of changes to assumptions from the interim quantitative impairment analysis performed as of March 31, 2020, management determined that it was not more likely than not that the goodwill balance of $28.1 million at June 30, 2020 was impaired. A prolonged pandemic, or any other event that harms the global or U.S. economies, could adversely affect our operations and negatively impact our financial condition and results of operations, which may require further evaluation in subsequent reporting periods, prior to our annual impairment test performed in the fourth quarter, and could result in an impairment charge. Treatment of Loan Modifications Pursuant to the CARES Act and Interagency Statement Section 4013 of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) enacted on March 27, 2020 provides that from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 pandemic declared by the President of the United States under the National Emergencies Act terminates (the “applicable period”), we may elect to suspend GAAP for loan modifications related to the pandemic that would otherwise be categorized as troubled debt restructurings (“TDRs”) and suspend any determination of a loan modified as a result of the effects of the pandemic as being a TDR, including impairment for accounting purposes. The suspension is applicable for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. The suspension is not applicable to any adverse impact on the credit of a borrower that is not related to the pandemic. In addition, our banking regulators and other financial regulators, on March 22, 2020 and revised April 7, 2020, issued a joint interagency statement titled the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of the COVID-19 pandemic. Pursuant to the interagency statement, loan modifications that do not meet the conditions of Section 4013 of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. Specifically, the agencies confirmed with the staff of the FASB that short-term modifications made in good faith in response to the pandemic to borrowers who were current prior to any relief are not TDRs under GAAP. This includes short-term (e.g. six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. Appropriate allowances for loan and lease losses are expected to be maintained. With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to the pandemic as past due because of the deferral. The interagency statement also states that during short-term pandemic-related loan modifications, these loans generally should not be reported as nonaccrual. Accordingly, we are offering short-term modifications made in response to COVID-19 to borrowers who are current and otherwise not past due. These include short-term modifications of 90 days or less, in the form of deferrals of payment of principal and interest, principal only, or interest only, and fee waivers. As of June 30, 2020, the balance of loans participating in the 90-day deferral program was $490.3 million, or 27% of the total loan portfolio. Of these loans, 73% have deferrals of principal and interest, 17% have deferrals of principal only, and 10% have deferrals of interest only. In accordance with Section 4013 of the CARES Act and the interagency statement, we have not accounted for such loans as TDRs, nor have we designated them as past due or nonaccrual. Accounting Pronouncements Not Yet Adopted FASB ASC Topic 326 “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments” Update No. 2016-13. The FASB issued ASU No. 2016-13 in June 2016. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. We are currently evaluating the potential impact of ASU 2016-13 on our financial statements. In that regard, we have formed a cross-functional working group, under the direction of our Chief Financial Officer and our Chief Risk Officer. The working group is comprised of individuals from various functional areas including credit, risk management, finance and information technology. We have developed an implementation plan to include assessment of processes, portfolio segmentation, model development, system requirements and the identification of data and resource needs, among other things. We have also selected a third-party vendor solution to assist us in the application of ASU 2016-13. The adoption of ASU 2016-13 is likely to result in an increase in the allowance for loan losses as a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate that we establish an allowance for expected credit losses on debt securities. While we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios, as well as the prevailing economic conditions and forecasts, as of the adoption date. This amendment was originally effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In July 2019, the FASB proposed changes that would delay the effective date for smaller reporting companies, as defined by the SEC, and other non-SEC reporting entities. In October 2019, the FASB voted in favor of finalizing its proposal to delay the effective date of this standard to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. ASU 2016-13 will be effective for the Company on January 1, 2023. The Company expects to adopt the standard as soon as practicable, based upon progress on the implementation plan. Adoption prior to the revised effective date of January 1, 2023 is permitted by the ASU. FASB ASC Topics 321, 323, and 815 “Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)” Update No. 2020-01. In January 2020, the FASB issued ASU 2020-01 to clarify the interaction among ASC 321, ASC 323, and ASC 815 for equity securities, equity method investments, and certain financial instruments to acquire equity securities. ASU 2020-01 clarifies whether re-measurement of equity investments is appropriate when observable transactions cause the equity method to be triggered or discontinued. ASU 2020-01 also provides that certain forward contracts and purchased options to acquire equity securities will be measured under ASC 321 without an assessment of subsequent accounting upon settlement or exercise. The amendment is effective for the Company on January 1, 2021. The Company does not expect the adoption of ASU 2020-01 to have a material impact on its consolidated financial statements. FASB ASC Topic 848 “Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting” Update No. 2020-04. In March 2020, the FASB issued ASU 2020-04, which is intended to provide temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the provisions of the amendment and the impact on its future consolidated financial statements.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	6 Months Ended
	Jun. 30, 2020
Business Combinations [Abstract]
BUSINESS COMBINATIONS	BUSINESS COMBINATIONS Mainland Bank On March 1, 2019, the Company completed the acquisition of Mainland Bank (“Mainland”) in Texas City, Texas. The Company acquired 100% of Mainland’s outstanding common shares for an aggregate merger consideration of 763,849 shares of the Company’s common stock, for a total of approximately $18.6 million. The acquisition of Mainland expanded the Company’s branch footprint into the greater Houston, Texas market. After fair value adjustments, the acquisition added $127.6 million in total assets, including $81.3 million in loans, and $107.6 million in deposits. As consideration paid was in excess of the net fair value of acquired assets, the Company recorded $5.2 million of goodwill. Goodwill resulted from a combination of synergies and cost savings, expansion into Texas with the addition of three branch locations, and enhanced products and services. The table below shows the allocation of the consideration paid for Mainland’s common equity to the acquired identifiable assets and liabilities assumed and the goodwill generated from the transaction (dollars in thousands). Purchase price: Stock issued $ 18,637 Fair value of assets acquired: Cash and cash equivalents 38,365 Loans 81,336 Other real estate owned 1,507 Bank premises and equipment 2,550 Core deposit intangible asset 2,439 Other assets 1,414 Total assets acquired 127,611 Fair value of liabilities acquired: Deposits 107,646 Repurchase agreements 4,684 Other liabilities 1,883 Total liabilities assumed 114,213 Fair value of net assets acquired 13,398 Goodwill $ 5,239 Fair value adjustments to assets acquired and liabilities assumed are generally amortized using the effective yield method over periods consistent with the average life, useful life and/or contractual term of the related assets and liabilities. The fair value of net assets acquired includes a fair value adjustment to loans as of the acquisition date. The adjustment for the acquired loan portfolio is based on current market interest rates at the time of acquisition, and the Company’s initial evaluation of credit losses identified. The contractually required principal and interest payments of the loans acquired from Mainland total $92.4 million. Prior to the end of the one-year adjustment period following the acquisition of Mainland, certain loans were identified to be purchase credit impaired loans at the time of acquisition. These loans had a balance of $2.8 million at the time of acquisition. The total contractually required principal and interest payments of these loans are $3.1 million, of which $1.7 million is not expected to be collected. Bank of York On November 1, 2019, the Company completed the acquisition of Bank of York in York, Alabama. The Company acquired 100% of Bank of York’s outstanding common shares for an aggregate merger consideration of $15.0 million. The acquisition of Bank of York expanded the Company’s branch footprint into the west Alabama market. After fair value adjustments, including total adjustments of approximately $0.7 million to other liabilities and small adjustments to loans and other assets recorded in the three months ended June 30, 2020, the acquisition added $101.9 million in total assets, including $46.1 million in loans, and $85.0 million in deposits. As consideration paid was in excess of the net fair value of acquired assets, the Company recorded $5.0 million of goodwill. Goodwill resulted from a combination of synergies and cost savings, and expansion into Alabama with the addition of two branch locations. The table below shows the allocation of the consideration paid for Bank of York’s common equity to the acquired identifiable assets and liabilities assumed and the goodwill generated from the transaction (dollars in thousands). The fair values listed below, primarily related to loans and deferred tax assets and liabilities, are subject to refinement for up to one year after the closing date of the acquisition as additional information becomes available. Purchase price: Cash paid $ 15,000 Fair value of assets acquired: Cash and cash equivalents 50,776 Investments 451 Loans 46,086 Bank premises and equipment 917 Core deposit intangible asset 931 Bank owned life insurance 2,429 Other assets 344 Total assets acquired 101,934 Fair value of liabilities acquired: Deposits 85,004 Repurchase agreements 5,641 Other liabilities 1,306 Total liabilities assumed 91,951 Fair value of net assets acquired 9,983 Goodwill $ 5,017 The fair value of net assets acquired includes a fair value adjustment to loans as of the acquisition date. The adjustment for the acquired loan portfolio is based on current market interest rates at the time of acquisition, and the Company’s initial evaluation of credit losses identified. The contractually required principal and interest payments of the loans acquired from Bank of York total $51.5 million. Loans acquired from Bank of York that are considered to be purchased credit impaired loans had a balance of $0.3 million at the time of acquisition. The total contractually required principal and interest payments of these loans are $0.3 million, of which $0.1 million is not expected to be collected. PlainsCapital On February 21, 2020, the Company completed the acquisition of the Alice and Victoria, Texas branch locations of PlainsCapital Bank (“PlainsCapital”), a wholly-owned subsidiary of Hilltop Holdings Inc., for an aggregate merger consideration of approximately $11.1 million. The acquisition added $48.7 million in total assets, including $45.3 million in loans, and $37.0 million in deposits. As consideration paid was in excess of the net fair value of acquired assets, the Company recorded $0.5 million of goodwill. Goodwill resulted from a combination of synergies and cost savings, and further expansion into south Texas with the addition of two branch locations. The table below shows the allocation of the consideration paid for certain assets, deposits and other liabilities associated with the Alice and Victoria, Texas locations of PlainsCapital and the goodwill generated from the transaction (dollars in thousands). The fair values listed below, primarily related to loans and deferred tax assets and liabilities, are subject to refinement for up to one year after the closing date of the acquisition as additional information becomes available. Purchase price: Cash paid $ 11,114 Fair value of assets acquired: Cash and cash equivalents 353 Loans 45,287 Bank premises and equipment 2,770 Core deposit intangible asset 170 Other assets 127 Total assets acquired 48,707 Fair value of liabilities acquired: Deposits 36,973 Other liabilities 1,084 Total liabilities assumed 38,057 Fair value of net assets acquired 10,650 Goodwill $ 464 The fair value of net assets acquired includes a fair value adjustment to loans as of the acquisition date. The adjustment for the acquired loan portfolio is based on current market interest rates at the time of acquisition, and the Company’s initial evaluation of credit losses identified. The contractually required principal and interest payments of the loans acquired from PlainsCapital total $51.3 million. No loans acquired from PlainsCapital were considered to be purchased credit impaired loans. Acquisition Expense Acquisition related costs of $0.3 million and $1.0 million are included in acquisition expenses in the accompanying consolidated statement of income for the three and six months ended June 30, 2020, respectively. These costs include system conversion and integrating operations charges for both the acquisition of Bank of York and the acquisition of two branches from PlainsCapital, as well as legal and consulting expenses.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE The following is a summary of the information used in the computation of basic and diluted earnings per share for the three and six months ended June 30, 2020 and 2019 (in thousands, except share data). Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Earnings per common share - basic Net income $ 4,274 $ 4,934 $ 4,882 $ 8,851 Less: income allocated to participating securities (21) (46) (28) (93) Net income allocated to common shareholders 4,253 4,888 4,854 8,758 Weighted-average basic shares outstanding 10,882,084 10,008,882 11,012,581 9,843,052 Basic earnings per common share $ 0.39 $ 0.49 $ 0.44 $ 0.89 Earnings per common share - diluted Net income allocated to common shareholders $ 4,253 $ 4,888 $ 4,854 $ 8,758 Weighted-average basic shares outstanding 10,882,084 10,008,882 11,012,581 9,843,052 Dilutive effect of securities — 95,364 26,373 95,076 Total weighted average diluted shares outstanding 10,882,084 10,104,246 11,038,954 9,938,128 Diluted earnings per common share $ 0.39 $ 0.48 $ 0.44 $ 0.88 The weighted average shares that have an antidilutive effect in the calculation of diluted earnings per common share and have been excluded from the computations above are shown below. Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Stock options — — 43 — Restricted stock awards 28,360 519 9,565 4 Restricted stock units 102,064 868 74,847 21,915

INVESTMENT SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]
INVESTMENT SECURITIES	INVESTMENT SECURITIES The amortized cost and approximate fair value of investment securities classified as AFS are summarized below as of the dates presented (dollars in thousands). Amortized Cost Gross Gross Fair June 30, 2020 Obligations of U.S. government agencies and corporations $ 41,987 $ 144 $ (130) $ 42,001 Obligations of state and political subdivisions 24,085 516 (113) 24,488 Corporate bonds 24,926 218 (492) 24,652 Residential mortgage-backed securities 86,502 3,134 — 89,636 Commercial mortgage-backed securities 64,675 1,645 (211) 66,109 Total $ 242,175 $ 5,657 $ (946) $ 246,886 Amortized Cost Gross Gross Fair December 31, 2019 Obligations of U.S. government agencies and corporations $ 33,651 $ 100 $ (100) $ 33,651 Obligations of state and political subdivisions 32,920 541 (12) 33,449 Corporate bonds 19,245 192 (274) 19,163 Residential mortgage-backed securities 100,948 1,083 (85) 101,946 Commercial mortgage-backed securities 71,340 564 (308) 71,596 Total $ 258,104 $ 2,480 $ (779) $ 259,805 Proceeds from sales of investment securities AFS and gross gains and losses are summarized below for the periods presented (dollars in thousands). Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Proceeds from sale $ 23,966 $ 62,171 $ 40,538 $ 62,564 Gross gains $ 1,179 $ 573 $ 1,361 $ 575 Gross losses $ (1) $ (346) $ (11) $ (346) The amortized cost and approximate fair value of investment securities classified as HTM are summarized below as of the dates presented (dollars in thousands). Amortized Cost Gross Gross Fair June 30, 2020 Obligations of state and political subdivisions $ 9,253 $ 8 $ — $ 9,261 Residential mortgage-backed securities 4,800 204 — 5,004 Total $ 14,053 $ 212 $ — $ 14,265 Amortized Cost Gross Gross Fair December 31, 2019 Obligations of state and political subdivisions $ 9,487 $ 14 $ — $ 9,501 Residential mortgage-backed securities 4,922 57 — 4,979 Total $ 14,409 $ 71 $ — $ 14,480 Securities are classified in the consolidated balance sheets according to management’s intent. The Company had no securities classified as trading as of June 30, 2020 or December 31, 2019. The aggregate fair values and aggregate unrealized losses on AFS securities whose fair values are below book values are summarized in the table below. Unrealized losses are generally due to changes in interest rates. Beginning in the first quarter of 2020, the COVID-19 pandemic has led to ongoing disruption and volatility in the capital markets, causing fluctuations of fair values across asset classes. The Company has the intent to hold these securities either until maturity or a forecasted recovery, and it is more likely than not that the Company will not have to sell the securities before the recovery of their cost basis. Due to the nature of the investment, current market prices, and the current interest rate environment, these unrealized losses are considered a temporary impairment of the securities. The number of AFS securities, fair value, and unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized below as of the dates presented (dollars in thousands). Less than 12 Months 12 Months or More Total Count Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized June 30, 2020 Obligations of U.S. government agencies and corporations 21 $ 20,689 $ (109) $ 4,035 $ (21) $ 24,724 $ (130) Obligations of state and political subdivisions 16 295 (1) 7,931 (112) 8,226 (113) Corporate bonds 23 5,252 (46) 7,304 (446) 12,556 (492) Residential mortgage-backed securities 1 293 — — — 293 — Commercial mortgage-backed securities 29 10,645 (102) 8,200 (109) 18,845 (211) Total 90 $ 37,174 $ (258) $ 27,470 $ (688) $ 64,644 $ (946) Less than 12 Months 12 Months or More Total Count Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized December 31, 2019 Obligations of U.S. government agencies and corporations 21 $ 19,980 $ (94) $ 955 $ (6) $ 20,935 $ (100) Obligations of state and political subdivisions 10 212 (1) 371 (11) 583 (12) Corporate bonds 21 495 (5) 7,829 (269) 8,324 (274) Residential mortgage-backed securities 32 12,341 (56) 6,190 (29) 18,531 (85) Commercial mortgage-backed securities 57 29,072 (274) 2,516 (34) 31,588 (308) Total 141 $ 62,100 $ (430) $ 17,861 $ (349) $ 79,961 $ (779) The unrealized losses in the Company’s investment portfolio are not credit issues, and the Company does not intend to sell the securities. Furthermore, it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases. The Company does not consider these securities to be other-than-temporarily impaired at June 30, 2020 or December 31, 2019. The amortized cost and approximate fair value of debt securities, by contractual maturity (including mortgage-backed securities), are shown below as of the dates presented (dollars in thousands). Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities Available For Sale Securities Held To Maturity Amortized Fair Amortized Fair June 30, 2020 Due within one year $ 962 $ 987 $ 790 $ 791 Due after one year through five years 10,794 10,833 3,575 3,580 Due after five years through ten years 68,954 68,738 4,888 4,890 Due after ten years 161,465 166,328 4,800 5,004 Total debt securities $ 242,175 $ 246,886 $ 14,053 $ 14,265 Securities Available For Sale Securities Held To Maturity Amortized Fair Amortized Fair December 31, 2019 Due within one year $ 2,174 $ 2,175 $ 790 $ 792 Due after one year through five years 13,525 13,675 3,575 3,582 Due after five years through ten years 66,551 66,568 5,122 5,126 Due after ten years 175,854 177,387 4,922 4,980 Total debt securities $ 258,104 $ 259,805 $ 14,409 $ 14,480 At June 30, 2020, securities with a carrying value of $114.2 million were pledged to secure certain deposits, borrowings, and other liabilities, compared to $89.5 million in pledged securities at December 31, 2019.

LOANS AND ALLOWANCE FOR LOAN LO

LOANS AND ALLOWANCE FOR LOAN LOSSES	6 Months Ended
	Jun. 30, 2020
Receivables [Abstract]
LOANS AND ALLOWANCE FOR LOAN LOSSES	LOANS AND ALLOWANCE FOR LOAN LOSSES The Company’s loan portfolio consists of the following categories of loans as of the dates presented (dollars in thousands). June 30, 2020 December 31, 2019 Construction and development $ 199,419 $ 197,797 1-4 Family 326,102 321,489 Multifamily 60,617 60,617 Farmland 28,845 27,780 Commercial real estate 783,559 731,060 Total mortgage loans on real estate 1,398,542 1,338,743 Commercial and industrial 390,085 323,786 Consumer 25,344 29,446 Total loans $ 1,813,971 $ 1,691,975 Unamortized premiums and discounts on loans, included in the total loans balances above, were $2.1 million at both June 30, 2020 and December 31, 2019. Beginning in the second quarter of 2020, the Bank has participated as a lender in the Small Business Administration’s (“SBA”) and U.S. Department of Treasury’s Paycheck Protection Program (“PPP”) as established by the CARES Act and enhanced by the Paycheck Protection Program and Health Care Enhancement Act and the Paycheck Protection Program Flexibility Act of 2020 (“Flexibility Act”). The PPP was established to provide unsecured low interest rate loans to small businesses that have been impacted by the COVID-19 pandemic. The PPP loans are 100% guaranteed by the SBA. The loans have a fixed interest rate of 1% with deferred payments, and mature two years from origination, or if made on or after June 5, 2020, five years from origination. PPP loans are forgiven by the SBA (which makes forgiveness payments directly to the lender) to the extent the borrower uses the proceeds of the loan for certain purposes (primarily to fund payroll costs) during the eight-week covered period (or, as amended by the Flexibility Act, the 24-week covered period or if shorter to December 31, 2020) following origination and maintains certain employee and compensation levels. Lenders receive processing fees from the SBA for originating the PPP loans which are based on a percentage of the loan amount. In July 2020, the CARES Act was amended to extend the SBA’s authority to make commitments under the PPP, which had previously expired on June 30, 2020. The PPP resumed taking applications on July 6, 2020 and the new deadline to apply for a PPP loan is August 8, 2020. In April 2020, we began originating loans to qualified small businesses under the PPP. At June 30, 2020, our loan portfolio included PPP loans with a balance of $109.5 million, all of which are included in commercial and industrial loans. The table below provides an analysis of the aging of loans as of the dates presented (dollars in thousands). June 30, 2020 Accruing Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Nonaccrual Total Past Due & Nonaccrual Acquired Impaired Loans Total Loans Construction and development $ 197,945 $ 389 $ — $ — $ 1,085 $ 1,474 $ — $ 199,419 1-4 Family 324,265 124 — — 1,315 1,439 398 326,102 Multifamily 59,964 653 — — — 653 — 60,617 Farmland 26,581 — — — — — 2,264 28,845 Commercial real estate 779,318 321 798 219 1,100 2,438 1,803 783,559 Total mortgage loans on real estate 1,388,073 1,487 798 219 3,500 6,004 4,465 1,398,542 Commercial and industrial 381,772 698 744 69 6,496 8,007 306 390,085 Consumer 24,746 25 28 1 503 557 41 25,344 Total loans $ 1,794,591 $ 2,210 $ 1,570 $ 289 $ 10,499 $ 14,568 $ 4,812 $ 1,813,971 December 31, 2019 Accruing Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Nonaccrual Total Past Due & Nonaccrual Acquired Impaired Loans Total Loans Construction and development $ 197,318 $ 133 $ 32 $ — $ 314 $ 479 $ — $ 197,797 1-4 Family 317,572 998 413 138 1,923 3,472 445 321,489 Multifamily 60,617 — — — — — — 60,617 Farmland 25,516 — — — — — 2,264 27,780 Commercial real estate 727,423 1,193 14 657 141 2,005 1,632 731,060 Total mortgage loans on real estate 1,328,446 2,324 459 795 2,378 5,956 4,341 1,338,743 Commercial and industrial 323,446 171 19 — 137 327 13 323,786 Consumer 28,443 339 95 — 531 965 38 29,446 Total loans $ 1,680,335 $ 2,834 $ 573 $ 795 $ 3,046 $ 7,248 $ 4,392 $ 1,691,975 Nonaccrual and Past Due Loans Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on nonaccrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. In determining whether or not a borrower may be unable to meet payment obligations for each class of loans, we consider the borrower’s debt service capacity through the analysis of current financial information, if available, and/or current information with regard to our collateral position. Regulatory provisions would typically require the placement of a loan on nonaccrual status if (i) principal or interest has been in default for a period of 90 days or more unless the loan is both well secured and in the process of collection or (ii) full payment of principal and interest is not expected. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income on nonaccrual loans is recognized only to the extent that cash payments are received in excess of principal due. A loan may be returned to accrual status when all the principal and interest amounts contractually due are brought current and future principal and interest amounts contractually due are reasonably assured, which is typically evidenced by a sustained period (at least six months) of repayment performance by the borrower. Certain borrowers are currently experiencing difficulties meeting their contractual payment obligations because of the adverse economic effects attributable to the COVID-19 pandemic. As a result, loan customers may apply for payment deferrals, or portions thereof, for up to 90 days. In the absence of other contributing factors, these short-term modifications made on a good faith basis are not considered TDRs, nor are loans granted payment deferrals related to COVID-19 reported as past due or placed on non-accrual status if the loans were not past due or on non-accrual status prior to the deferral. See Note 1. Summary of Significant Accounting Policies for further discussion. Loans Acquired with Deteriorated Credit Quality The Company accounts for certain loans acquired as acquired impaired loans under ASC 310-30 due to evidence of credit deterioration at acquisition and the probability that the Company will be unable to collect all contractually required payments. The acquired impaired loans had no accretable yield recorded for the three and six months ended June 30, 2020 and 2019. Portfolio Segment Risk Factors The following describes the risk characteristics relevant to each of the Company’s loan portfolio segments. Construction and Development - Construction and development loans are generally made for the purpose of acquisition and development of land to be improved through the construction of commercial and residential buildings. The successful repayment of these types of loans is generally dependent upon a commitment for permanent financing from the Company, or from the sale of the constructed property. These loans carry more risk than commercial or residential real estate loans due to the dynamics of construction projects, changes in interest rates, the long-term financing market, and state and local government regulations. One such risk is that loan funds are advanced upon the security of the property under construction, which is of uncertain value prior to the completion of construction. Thus, it is more difficult to evaluate accurately the total loan funds required to complete a project and to calculate related loan-to-value ratios. The Company attempts to minimize the risks associated with construction lending by limiting loan-to-value ratios as described above. In addition, as to speculative development loans, the Company generally makes such loans only to borrowers that have a positive pre-existing relationship with us. The Company manages risk by using specific underwriting policies and procedures for these types of loans and by avoiding excessive concentrations in any one business or industry. 1-4 Family - The 1-4 family portfolio mainly consists of residential mortgage loans to consumers to finance a primary residence. The majority of these loans are secured by properties located in the Company’s market areas and carry risks associated with the creditworthiness of the borrower and changes in the value of the collateral and loan-to-value-ratios. The Company manages these risks through policies and procedures such as limiting loan-to-value ratios at origination, employing experienced underwriting personnel, requiring standards for appraisers, and not making subprime loans. Multifamily - Multifamily loans are normally made to real estate investors to support permanent financing for multifamily residential income producing properties that rely on the successful operation of the property for repayment. This management mainly involves property maintenance and collection of rents due from tenants. This type of lending carries a lower level of risk, as compared to other commercial lending. In addition, underwriting requirements for multifamily properties are stricter than for other non-owner-occupied property types. The Company manages this risk by avoiding concentrations with any particular customer. Farmland - Farmland loans are often for land improvements related to agricultural endeavors and may include construction of new specialized facilities. These loans are usually repaid through the conversion to permanent financing, or if scheduled loan amortization begins, for the long-term benefit of the borrower’s ongoing operations. Underwriting generally involves intensive analysis of the financial strength of the borrower and guarantor, liquidation value of the subject collateral, the associated unguaranteed exposure, and any available secondary sources of repayment, with the greatest emphasis given to a borrower’s capacity to meet cash flow coverage requirements as set forth by Bank policies. Commercial Real Estate - Commercial real estate loans are extensions of credit secured by owner occupied and non-owner occupied collateral. Underwriting generally involves intensive analysis of the financial strength of the borrower and guarantor, liquidation value of the subject collateral, the associated unguaranteed exposure, and any available secondary sources of repayment, with the greatest emphasis given to a borrower’s capacity to meet cash flow coverage requirements as set forth by Bank policies. Repayment is commonly derived from the successful ongoing operations of the property. General market conditions and economic activity may impact the performance of these types of loans, including fluctuations in the value of real estate, new job creation trends, and tenant vacancy rates. The Company attempts to limit risk by analyzing a borrower’s cash flow and collateral value on an ongoing basis. The Company also typically requires personal guarantees from the principal owners of the property, supported by a review of their personal financial statements, as an additional means of mitigating our risk. The Company manages risk by avoiding concentrations in any one business or industry. Commercial and Industrial - Commercial and industrial loans receive similar underwriting treatment as commercial real estate loans in that the repayment source is analyzed to determine its ability to meet cash flow coverage requirements as set forth by Bank policies. Repayment of these loans generally comes from the generation of cash flow as the result of the borrower’s business operations. Commercial lending generally involves different risks from those associated with commercial real estate lending or construction lending. Although commercial loans may be collateralized by equipment or other business assets (including real estate, if available as collateral), the repayment of these types of loans depends primarily on the creditworthiness and projected cash flow of the borrower (and any guarantors). Thus, the general business conditions of the local economy and the borrower’s ability to sell its products and services, thereby generating sufficient operating revenue to repay us under the agreed upon terms and conditions, are the chief considerations when assessing the risk of a commercial loan. The liquidation of collateral, if any, is considered a secondary source of repayment because equipment and other business assets may, among other things, be obsolete or of limited resale value. The Company actively monitors certain financial measures of the borrower, including advance rate, cash flow, collateral value and other appropriate credit factors. Consumer - Consumer loans are offered by the Company in order to provide a full range of retail financial services to its customers and include auto loans, credit cards, and other consumer installment loans. Typically, the Company evaluates the borrower’s repayment ability through a review of credit scores and an evaluation of debt to income ratios. Repayment of consumer loans depends upon key consumer economic measures and upon the borrower’s financial stability, and is more likely to be adversely affected by divorce, job loss, illness and personal hardships than repayment of other loans. A shortfall in the value of any collateral also may pose a risk of loss to the Company for these types of loans. Credit Quality Indicators Loans are categorized into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The following definitions are utilized for risk ratings, which are consistent with the definitions used in supervisory guidance: Pass - Loans not meeting the criteria below are considered pass. These loans have high credit characteristics and financial strength. The borrowers at least generate profits and cash flow that are in line with peer and industry standards and have debt service coverage ratios above loan covenants and our policy guidelines. For some of these loans, a guaranty from a financially capable party mitigates characteristics of the borrower that might otherwise result in a lower grade. Special Mention - Loans classified as special mention possess some credit deficiencies that need to be corrected to avoid a greater risk of default in the future. For example, financial ratios relating to the borrower may have deteriorated. Often, a special mention categorization is temporary while certain factors are analyzed or matters addressed before the loan is re-categorized as either pass or substandard. Substandard - Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the borrower or the liquidation value of any collateral. If deficiencies are not addressed, it is likely that this category of loan will result in the Bank incurring a loss. Where a borrower has been unable to adjust to industry or general economic conditions, the borrower’s loan is often categorized as substandard. Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss - Loans classified as loss are considered uncollectible and of such little value that their continuance as recorded assets is not warranted. This classification does not mean that the assets have absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off these assets. The table below presents the Company’s loan portfolio by category and credit quality indicator as of the dates presented (dollars in thousands). June 30, 2020 Pass Special Substandard Doubtful Total Construction and development $ 190,263 $ 7,860 $ 1,296 $ — $ 199,419 1-4 Family 324,046 371 1,685 — 326,102 Multifamily 60,617 — — — 60,617 Farmland 26,301 — 2,544 — 28,845 Commercial real estate 779,152 — 4,407 — 783,559 Total mortgage loans on real estate 1,380,379 8,231 9,932 — 1,398,542 Commercial and industrial 383,532 40 6,513 — 390,085 Consumer 24,764 77 503 — 25,344 Total loans $ 1,788,675 $ 8,348 $ 16,948 $ — $ 1,813,971 December 31, 2019 Pass Special Substandard Doubtful Total Construction and development $ 196,873 $ 610 $ 314 $ — $ 197,797 1-4 Family 318,549 714 2,198 28 321,489 Multifamily 60,617 — — — 60,617 Farmland 25,516 — 2,264 — 27,780 Commercial real estate 729,921 — 1,139 — 731,060 Total mortgage loans on real estate 1,331,476 1,324 5,915 28 1,338,743 Commercial and industrial 318,519 2,910 2,264 93 323,786 Consumer 28,775 128 543 — 29,446 Total loans $ 1,678,770 $ 4,362 $ 8,722 $ 121 $ 1,691,975 The Company had no loans that were classified as loss at June 30, 2020 or December 31, 2019. Loan Participations and Sold Loans Loan participations and whole loans sold to and serviced for others are not included in the accompanying consolidated balance sheets. The balance of loans serviced for others was $63.1 million and $82.8 million at June 30, 2020 and December 31, 2019, respectively. The unpaid principal balance of these loans was approximately $139.9 million and $174.7 million at June 30, 2020 and December 31, 2019, respectively. Loans to Related Parties In the ordinary course of business, the Company makes loans to related parties including its executive officers, principal stockholders, directors and their immediate family members, as well as companies in which these individuals are principal owners. Loans outstanding to such related party borrowers amounted to approximately $97.6 million and $98.1 million as of June 30, 2020 and December 31, 2019, respectively. The table below shows the aggregate principal balance of loans to such related parties as of the dates presented (dollars in thousands). June 30, 2020 December 31, 2019 Balance, beginning of period $ 98,093 $ 93,021 New loans 8,617 20,903 Repayments and changes in relationship (9,097) (15,831) Balance, end of period $ 97,613 $ 98,093 Allowance for Loan Losses The table below shows a summary of the activity in the allowance for loan losses for the three and six months ended June 30, 2020 and 2019 (dollars in thousands). Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Balance, beginning of period $ 14,233 $ 9,642 $ 10,700 $ 9,454 Provision for loan losses 2,500 369 6,260 634 Loans charged off (151) (120) (413) (224) Recoveries 75 33 110 60 Balance, end of period $ 16,657 $ 9,924 $ 16,657 $ 9,924 The following tables outline the activity in the allowance for loan losses by collateral type for the three and six months ended June 30, 2020 and 2019, and show both the allowance and portfolio balances for loans individually and collectively evaluated for impairment as of June 30, 2020 and 2019 (dollars in thousands). Three months ended June 30, 2020 Construction & Development Farmland 1-4 Family Multifamily Commercial Real Estate Commercial & Consumer Total Allowance for loan losses: Beginning balance $ 1,554 $ 163 $ 2,337 $ 351 $ 5,863 $ 3,287 $ 678 $ 14,233 Provision 495 44 496 135 1,311 46 (27) 2,500 Charge-offs — — — — (76) — (75) (151) Recoveries 9 — 5 — 31 3 27 75 Ending balance $ 2,058 $ 207 $ 2,838 $ 486 $ 7,129 $ 3,336 $ 603 $ 16,657 Three months ended June 30, 2019 Construction & Development Farmland 1-4 Family Multifamily Commercial Real Estate Commercial & Consumer Total Allowance for loan losses: Beginning balance $ 1,094 $ 101 $ 1,511 $ 380 $ 4,226 $ 1,673 $ 657 $ 9,642 Provision 34 (4) (77) (9) 53 424 (52) 369 Charge-offs (51) — — — — — (69) (120) Recoveries 15 — 5 — — 1 12 33 Ending balance $ 1,092 $ 97 $ 1,439 $ 371 $ 4,279 $ 2,098 $ 548 $ 9,924 Six months ended June 30, 2020 Construction & Development Farmland 1-4 Multifamily Commercial Real Estate Commercial & Industrial Consumer Total Allowance for loan losses: Beginning balance $ 1,201 $ 101 $ 1,490 $ 387 $ 4,424 $ 2,609 $ 488 $ 10,700 Provision 835 106 1,499 99 2,750 729 242 6,260 Charge-offs — — (160) — (76) (7) (170) (413) Recoveries 22 — 9 — 31 5 43 110 Ending balance $ 2,058 $ 207 $ 2,838 $ 486 $ 7,129 $ 3,336 $ 603 $ 16,657 Ending allowance balance for loans individually evaluated for impairment — — — — — 13 159 172 Ending allowance balance for loans acquired with deteriorated credit quality — — — — — — — — Ending allowance balance for loans collectively evaluated for impairment 2,058 207 2,838 486 7,129 3,323 444 16,485 Loans receivable: Balance of loans individually evaluated for impairment 1,082 — 1,237 — 4,220 7,051 487 14,077 Balance of loans acquired with deteriorated credit quality — 2,264 398 — 1,803 306 41 4,812 Balance of loans collectively evaluated for impairment 198,337 26,581 324,467 60,617 777,536 382,728 24,816 1,795,082 Total period-end balance $ 199,419 $ 28,845 $ 326,102 $ 60,617 $ 783,559 $ 390,085 $ 25,344 $ 1,813,971 Six months ended June 30, 2019 Construction & Development Farmland 1-4 Multifamily Commercial Real Estate Commercial & Industrial Consumer Total Allowance for loan losses: Beginning balance $ 1,038 $ 81 $ 1,465 $ 331 $ 4,182 $ 1,641 $ 716 $ 9,454 Provision 89 16 (33) 40 97 445 (20) 634 Charge-offs (51) — — — — — (173) (224) Recoveries 16 — 7 — — 12 25 60 Ending balance $ 1,092 $ 97 $ 1,439 $ 371 $ 4,279 $ 2,098 $ 548 $ 9,924 Ending allowance balance for loans individually evaluated for impairment 66 — — — — — 185 251 Ending allowance balance for loans acquired with deteriorated credit quality — — — — — — — — Ending allowance balance for loans collectively evaluated for impairment 1,026 97 1,439 371 4,279 2,098 363 9,673 Loans receivable: Balance of loans individually evaluated for impairment 346 — 1,312 — 878 6 658 3,200 Balance of loans acquired with deteriorated credit quality — 2,264 472 — 1,550 — 42 4,328 Balance of loans collectively evaluated for impairment 166,886 22,939 303,728 56,081 675,128 276,896 34,122 1,535,780 Total period-end balance $ 167,232 $ 25,203 $ 305,512 $ 56,081 $ 677,556 $ 276,902 $ 34,822 $ 1,543,308 Impaired Loans The Company considers a loan to be impaired when, based on current information and events, the Company determines that it will not be able to collect all amounts due according to the loan agreement, including scheduled interest payments. Determination of impairment is treated the same across all classes of loans. When the Company identifies a loan as impaired, it measures the impairment based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole (remaining) source of repayment for the loans is the operation or liquidation of the collateral. In these cases when foreclosure is probable, the Company uses the current fair value of the collateral, less selling costs, instead of discounted cash flows. If the Company determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs, and unamortized premium or discount), the Company recognizes impairment through an allowance estimate or a charge-off to the allowance. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual, all payments are applied to principal, under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on nonaccrual, contractual interest is credited to interest income when received, under the cash basis method. The following tables contain information on the Company’s impaired loans, which include TDRs, discussed in more detail below, and nonaccrual loans individually evaluated for impairment for purposes of determining the allowance for loan losses. The average balances are calculated based on the month-end balances of the loans during the period reported (dollars in thousands). June 30, 2020 Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Construction and development $ 1,082 $ 1,155 $ — 1-4 Family 1,237 1,242 — Commercial real estate 4,220 4,225 — Total mortgage loans on real estate 6,539 6,622 — Commercial and industrial 7,039 7,044 — Consumer 201 218 — Total 13,779 13,884 — With related allowance recorded: Commercial and industrial 12 13 13 Consumer 286 334 159 Total 298 347 172 Total loans: Construction and development 1,082 1,155 — 1-4 Family 1,237 1,242 — Commercial real estate 4,220 4,225 — Total mortgage loans on real estate 6,539 6,622 — Commercial and industrial 7,051 7,057 13 Consumer 487 552 159 Total $ 14,077 $ 14,231 $ 172 December 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Construction and development $ 247 $ 269 $ — 1-4 Family 1,662 1,745 — Commercial real estate 47 50 — Total mortgage loans on real estate 1,956 2,064 — Commercial and industrial 93 96 Consumer 188 205 — Total 2,237 2,365 — With related allowance recorded: Consumer 310 347 141 Total 310 347 141 Total loans: Construction and development 247 269 — 1-4 Family 1,662 1,745 — Commercial real estate 47 50 — Total mortgage loans on real estate 1,956 2,064 — Commercial and industrial 93 96 — Consumer 498 552 141 Total $ 2,547 $ 2,712 $ 141 Presented in the tables below is the average recorded investment of the impaired loans and the related amount of interest income recognized during the time within the period that the loans were impaired. The average balances are calculated based on the month-end balances of the loans during the periods reported (dollars in thousands). Three months ended June 30, 2020 2019 Average Interest Average Interest With no related allowance recorded: Construction and development $ 1,089 $ 3 $ 265 $ 3 1-4 Family 1,262 7 1,281 7 Multifamily — — 36 — Commercial real estate 3,262 46 1,198 2 Total mortgage loans on real estate 5,613 56 2,780 12 Commercial and industrial 2,380 18 7 — Consumer 212 — 188 — Total 8,205 74 2,975 12 With related allowance recorded: Construction and development — — 114 — Total mortgage loans on real estate — — 114 — Commercial and industrial 12 — — — Consumer 289 — 479 — Total 301 — 593 — Total loans: Construction and development 1,089 3 379 3 1-4 Family 1,262 7 1,281 7 Multifamily — — 36 — Commercial real estate 3,262 46 1,198 2 Total mortgage loans on real estate 5,613 56 2,894 12 Commercial and industrial 2,392 18 7 — Consumer 501 — 667 — Total $ 8,506 $ 74 $ 3,568 $ 12 Six months ended June 30, 2020 2019 Average Interest Average Interest With no related allowance recorded: Construction and development $ 808 $ 5 $ 264 $ 8 1-4 Family 1,508 9 1,257 17 Multifamily — — 72 — Commercial real estate 1,655 46 1,079 4 Total mortgage loans on real estate 3,971 60 2,672 29 Commercial and industrial 1,244 18 14 — Consumer 208 — 258 — Total 5,423 78 2,944 29 With related allowance recorded: Construction and development — — 124 — Total mortgage loans on real estate — — 124 — Commercial and industrial 12 — — — Consumer 292 1 489 — Total 304 1 613 — Total loans: Construction and development 808 5 388 8 1-4 Family 1,508 9 1,257 17 Multifamily — — 72 — Commercial real estate 1,655 46 1,079 4 Total mortgage loans on real estate 3,971 60 2,796 29 Commercial and industrial 1,256 18 14 — Consumer 500 1 747 — Total $ 5,727 $ 79 $ 3,557 $ 29 Troubled Debt Restructurings In situations where, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession for other than an insignificant period of time to the borrower that the Company would not otherwise consider, the related loan is classified as a TDR. The Company strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before such loans reach nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases in which the Company grants the borrower new terms that provide for a reduction of either interest or principal, or otherwise include a concession, the Company identifies the loan as a TDR and measures any impairment on the restructuring as previously noted for impaired loans. Loans classified as TDRs, consisting of 24 credits, totaled $5.3 million at June 30, 2020, compared to 18 credits totaling $1.5 million at December 31, 2019. At June 30, 2020, 13 of the restructured loans were considered TDRs due to modification of terms through adjustments to maturity, seven of the restructured loans were considered TDRs due to a reduction in the interest rate to a rate lower than the current market rate, two restructured loans were considered TDRs due to principal payment forbearance paying interest only for a specified period of time, one restructured loan was considered a TDR due to a reduction in principal payments on a modified payment schedule, and one restructured loan was considered a TDR due to additional funding over the original loan amount. As of June 30, 2020 and December 31, 2019, two of the TDRs, consisting of one construction and development loan totaling $0.3 million and one 1-4 family loan totaling $0.2 million, were in default of their modified terms and are included in nonaccrual loans. The Company individually evaluates each TDR for allowance purposes, primarily based on collateral value, and excludes these loans from the loan population that is collectively evaluated for impairment. At June 30, 2020 and December 31, 2019, there were no available balances on loans classified as TDRs that the Company was committed to lend. There were no loans modified under TDRs during the previous twelve month period that subsequently defaulted during the six months ended June 30, 2020. No TDRs defaulted on their modified terms during the six months ended June 30, 2019.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS’ EQUITY Accumulated Other Comprehensive Income (Loss) Activity within the balances in accumulated other comprehensive income (loss) is shown in the tables below (dollars in thousands). Three months ended June 30, 2020 2019 Beginning of Period Net Change End of Period Beginning of Period Net Change End of Period Unrealized gain, available for sale, net $ 4,038 $ 2,883 $ 6,921 $ 565 $ 2,672 $ 3,237 Reclassification of realized gain, net (2,267) (931) (3,198) (1,927) (179) (2,106) Unrealized gain (loss), transfer from available for sale to held to maturity, net 4 (1) 3 5 — 5 Change in fair value of interest rate swap designated as a cash flow hedge, net (1,969) (1,387) (3,356) 324 (247) 77 Accumulated other comprehensive (loss) income $ (194) $ 564 $ 370 $ (1,033) $ 2,246 $ 1,213 Six months ended June 30, 2020 2019 Beginning of Period Net Change End of Period Beginning of Period Net Change End of Period Unrealized gain (loss), available for sale, net $ 3,476 $ 3,445 $ 6,921 $ (1,647) $ 4,884 $ 3,237 Reclassification of realized gain, net (2,131) (1,067) (3,198) (1,925) (181) (2,106) Unrealized gain (loss), transfer from available for sale to held to maturity, net 4 (1) 3 5 — 5 Change in fair value of interest rate swap designated as a cash flow hedge, net 542 (3,898) (3,356) 491 (414) 77 Accumulated other comprehensive income (loss) $ 1,891 $ (1,521) $ 370 $ (3,076) $ 4,289 $ 1,213

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Equity Incentive Plan. The Company’s 2017 Long-Term Incentive Compensation Plan (the “Plan”) authorizes the grant of various types of equity grants and awards, such as restricted stock, restricted stock units, stock options and stock appreciation rights, to eligible participants, which include all of the Company’s employees, non-employee directors, and consultants. The Plan has reserved 600,000 shares of common stock for grant, award or issuance to eligible participants, including shares underlying granted options. At June 30, 2020, 243,712 shares were available for future grants under the Plan. Shares covered by awards that expire or terminate will again be available for the grant of awards under the Plan. Stock Options The Company uses a Black-Scholes option pricing model to estimate the fair value of share-based awards. The Black-Scholes option pricing model incorporates various highly subjective assumptions, including expected term and expected volatility. The assumptions presented below were used for the options granted during the six months ended June 30, 2020. Expected dividends 1.12 % Expected volatility 26.39 % Risk-free interest rate 0.99 % Expected term (in years) 6.5 Weighted-average grant date fair value $ 5.17 Stock option expense in the accompanying consolidated statements of income for the three and six months ended June 30, 2020 was $83,000 and $156,000, respectively, and $86,000 and $146,000 for the three and six months ended June 30, 2019, respectively. At June 30, 2020, there was $0.7 million of unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 3.6 years. The table below summarizes stock option activity for the periods presented. Six months ended June 30, 2020 2019 Number Weighted Average Number Weighted Average Outstanding at beginning of period 357,214 $ 16.96 340,646 $ 15.98 Granted 58,993 21.36 36,984 24.40 Forfeited (4,585) 14.00 — — Exercised (3,334) 14.00 (1,916) 14.60 Outstanding at end of period 408,288 $ 17.66 375,714 $ 16.82 Exercisable at end of period 249,435 $ 15.85 196,111 $ 15.27 Restricted Stock and Restricted Stock Units The Company has granted restricted stock and restricted stock units under the Plan. These awards are subject to a vesting period. During the vesting period, restricted stock participants may exercise full voting rights and will receive all dividends paid with respect to the restricted shares. Restricted stock units do not have voting rights and do not receive dividends or dividend equivalents. Compensation expense for restricted stock and restricted stock units is recognized over the requisite vesting period of generally five years for employees and two years for non-employee directors for the entire award on a straight-line basis. Upon vesting of restricted stock and restricted stock units, the benefit of tax deductions in excess of recognized compensation expense is reflected as an income tax benefit in the Consolidated Statements of Income. Historically, the Company has issued restricted stock awards to Plan participants. Beginning in 2019, the Company issued time vested restricted stock units to its non-employee directors and certain officers of the Company with vesting terms ranging from two years to five years. The total share-based compensation expense to be recognized for these awards is determined based on the market price of the Company’s common stock at the grant date applied to the total number of units awarded and is amortized over the vesting period. Stock compensation expense related to time vested restricted stock and restricted stock units in the accompanying consolidated statements of income was $0.4 million and $0.7 million for the three and six months ended June 30, 2020, respectively, and $0.3 million and $0.5 million for the three and six months ended June 30, 2019, respectively. At June 30, 2020, there was $4.1 million of unrecognized compensation cost related to time vested restricted stock and restricted stock units that is expected to be recognized over a weighted average period of 3.6 years. The restricted stock and restricted stock unit activity is shown below for the periods presented. Six months ended June 30, 2020 2019 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Balance at beginning of period 168,216 $ 22.43 135,848 $ 20.47 Granted 100,850 21.56 76,809 24.45 Forfeited (9,484) 21.92 (5,828) 23.70 Earned and issued (52,381) 21.39 (39,861) 19.84 Balance at end of period 207,201 $ 22.29 166,968 $ 22.33

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	DERIVATIVE FINANCIAL INSTRUMENTS As part of its liability management, the Company utilizes pay-fixed interest rate swaps to manage exposure against the variability in the expected future cash flows (future interest payments) attributable to changes in the 1-month LIBOR associated with the forecasted issuances of 1-month fixed rate debt arising from a rollover strategy. The maximum length of time over which the Company is currently hedging its exposure to the variability in future cash flows for forecasted transactions is approximately 10.1 years. As of June 30, 2020, the Company had interest rate swap agreements with a total notional amount of $80.0 million and forward starting interest rate swap agreements with a total notional amount of $110.0 million, all of which were designated as cash flow hedges. The interest rate swaps were determined to be fully effective during the periods presented, and therefore no amount of ineffectiveness has been included in net income. The derivative contracts are between the Company and a single counterparty. To mitigate credit risk, securities are pledged to the Company by the counterparty in an amount greater than or equal to the gain position of the derivative contracts. For the three and six months ended June 30, 2020, losses of $1.4 million and $3.9 million, respectively, have been recognized in “Other comprehensive income (loss)” in the accompanying consolidated statements of comprehensive income for the change in fair value of the interest rate swaps compared to losses of $0.2 million and $0.4 million recognized for the three and six months ended June 30, 2019, respectively. The swap contracts had a negative fair value of $4.2 million and have been recorded in “Accrued taxes and other liabilities” in the accompanying consolidated balance sheet at June 30, 2020. The swap contracts had a fair value of $0.7 million and is included in “Other assets” in the accompanying consolidated balance sheet at December 31, 2019. The accumulated loss of $3.4 million included in “Accumulated other comprehensive income” in the accompanying consolidated balance sheets would be reclassified to current earnings if the hedge transactions become probable of not occurring. The Company expects the hedges to remain fully effective during the remaining term of the swap contracts. Customer Derivatives – Interest Rate Swaps The Company enters into interest rate swaps that allow commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to an interest rate swap agreement, which serves to effectively swap the customer’s variable-rate loan into a fixed-rate loan. The Company then enters into a corresponding swap agreement with a third party in order to economically hedge its exposure through the customer agreement. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC Topic 815, Derivatives and Hedging , and are marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC Topic 820, Fair Value Measurement and Disclosure (“ASC 820”). The Company did not recognize any gains or losses in other income resulting from fair value adjustments during the three and six months ended June 30, 2020.

FAIR VALUES OF FINANCIAL INSTRU

FAIR VALUES OF FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
FAIR VALUES OF FINANCIAL INSTRUMENTS	FAIR VALUES OF FINANCIAL INSTRUMENTS In accordance with ASC 820, disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, is required. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Fair value is best determined based upon quoted market prices, or exit prices. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows, and the fair value estimates may not be realized in an immediate settlement of the instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy In accordance with ASC 820, the Company groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 – Valuation is based upon quoted prices for identical assets or liabilities traded in active markets. Level 2 – Valuation is based upon observable inputs other than quoted prices included in level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 – Valuation is based upon unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments: Cash and Due from Banks – For these short-term instruments, fair value is the carrying value. Cash and due from banks is classified in level 1 of the fair value hierarchy. Federal Funds Sold – The fair value is the carrying value. The Company classifies these assets in level 1 of the fair value hierarchy. Investment Securities and Equity Securities – Where quoted prices are available in an active market, the Company classifies the securities within level 1 of the valuation hierarchy. Securities are defined as both long and short positions. Level 1 securities include exchange-traded equity securities. If quoted market prices are not available, the Company estimates fair values using pricing models and discounted cash flows that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, and credit spreads. Examples of such instruments, which would generally be classified within level 2 of the valuation hierarchy if observable inputs are available, include obligations of U.S. government agencies and corporations, obligations of state and political subdivisions, corporate bonds, residential mortgage-backed securities, commercial mortgage-backed securities, and other equity securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, the Company classifies those securities in level 3. Based on market reference data, which may include reported trades; bids, offers or broker/dealer quotes; benchmark yields and spreads; as well as other reference data, management monitors the current placement of securities in the fair value hierarchy to determine whether transfers between levels may be warranted. At June 30, 2020, all of our level 3 investments were obligations of state and political subdivisions. The Company estimated the fair value of these level 3 investments using discounted cash flow models, the key inputs of which are the coupon rate, current spreads to the yield curves, and expected repayment dates, adjusted for illiquidity of the local municipal market and sinking funds, if applicable. Option-adjusted models may be used for structured or callable notes, as appropriate. Loans – The fair value of portfolio loans, net is determined using an exit price methodology. The exit price methodology continues to be based on a discounted cash flow analysis, in which projected cash flows are based on contractual cash flows adjusted for prepayments for certain loan types (e.g. residential mortgage loans and multifamily loans) and the use of a discount rate based on expected relative risk of the cash flows. The discount rate selected considers loan type, maturity date, a liquidity premium, cost to service, and cost of capital, which is a level 3 fair value estimate. Deposit Liabilities – The fair values disclosed for noninterest-bearing demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). These noninterest-bearing deposits are classified in level 2 of the fair value hierarchy. All interest-bearing deposits are classified in level 3 of the fair value hierarchy. The carrying amounts of variable-rate (for example interest-bearing checking, savings, and money market accounts), fixed-term money market accounts, and certificates of deposit approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates on comparable instruments to a schedule of aggregated expected monthly maturities on time deposits. Short-Term Borrowings – The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings approximate their fair values. The Company classifies these borrowings in level 2 of the fair value hierarchy. Long-Term Borrowings, including Junior Subordinated Debt Securities – The fair values of long-term borrowings are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The fair value of the Company’s long-term debt is therefore classified in level 3 in the fair value hierarchy. Subordinated Debt Securities – The fair value of subordinated debt is estimated based on current market rates on similar debt in the market. The Company classifies this debt in level 2 of the fair value hierarchy. Derivative Financial Instruments – The fair value for interest rate swap agreements is based upon the amounts required to settle the contracts. These derivative instruments are classified in level 2 of the fair value hierarchy. Fair Value of Assets and Liabilities Measured on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized in the table below as of the dates indicated (dollars in thousands). Estimated Quoted Prices in Significant Other Significant June 30, 2020 Assets: Obligations of U.S. government agencies and corporations $ 42,001 $ — $ 42,001 $ — Obligations of state and political subdivisions 24,488 — 6,192 18,296 Corporate bonds 24,652 — 24,652 — Residential mortgage-backed securities 89,636 — 89,636 — Commercial mortgage-backed securities 66,109 — 66,109 — Equity securities 2,518 2,518 — — Total assets $ 249,404 $ 2,518 $ 228,590 $ 18,296 Liabilities: Derivative financial instruments $ 4,247 $ — $ 4,247 $ — December 31, 2019 Assets: Obligations of U.S. government agencies and corporations $ 33,651 $ — $ 33,651 $ — Obligations of state and political subdivisions 33,449 — 14,074 19,375 Corporate bonds 19,163 — 19,163 — Residential mortgage-backed securities 101,946 — 101,946 — Commercial mortgage-backed securities 71,596 — 71,596 — Equity securities 2,097 2,097 — — Derivative financial instruments 687 — 687 — Total assets $ 262,589 $ 2,097 $ 241,117 $ 19,375 The Company reviews fair value hierarchy classifications on a quarterly basis. Changes in the Company’s ability to observe inputs to the valuation may cause reclassification of certain assets or liabilities within the fair value hierarchy. The tables below provide a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs, or level 3 inputs, for the six months ended June 30, 2020 and June 30, 2019 (dollars in thousands). Obligations of State and Balance at December 31, 2019 $ 19,375 Realized gains (losses) included in earnings — Unrealized losses included in other comprehensive income (loss) (1,079) Purchases — Sales — Maturities, prepayments, and calls — Transfers into level 3 — Transfers out of level 3 — Balance at June 30, 2020 $ 18,296 Obligations of State and Corporate Bonds Total Balance at December 31, 2018 $ 18,808 $ 1,335 $ 20,143 Realized gains (losses) included in earnings — — — Unrealized gains (losses) included in other comprehensive income (loss) 506 (13) 493 Purchases — — — Sales — — — Maturities, prepayments, and calls (23) — (23) Transfers into level 3 — — — Transfers out of level 3 — — — Balance at June 30, 2019 $ 19,291 $ 1,322 $ 20,613 There were no liabilities measured at fair value on a recurring basis using level 3 inputs at June 30, 2020 and December 31, 2019. For the three and six months ended June 30, 2020 and 2019, there were no gains or losses included in earnings related to the change in fair value of the assets measured on a recurring basis using significant unobservable inputs held at the end of the period. The following table provides quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured at fair value on a recurring basis at June 30, 2020 or December 31, 2019 (dollars in thousands): Estimated Valuation Technique Unobservable Inputs Range of Discounts June 30, 2020 Obligations of State and Political Subdivisions $ 18,296 Option-adjusted discounted cash flow model; present value of expected future cash flow model Bond Appraisal Adjustment (1) 0% - 7% (1) Fair values determined through valuation analysis using coupon, yield (discount margin), liquidity and expected repayment dates. Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Quantitative information about assets measured at fair value on a nonrecurring basis based on significant unobservable inputs (level 3) is summarized below as of the dates indicated; there were no liabilities measured on a nonrecurring basis at June 30, 2020 or December 31, 2019 (dollars in thousands). Estimated Valuation Technique Unobservable Inputs Range of Discounts Weighted Average Discount June 30, 2020 Impaired loans $ 91 Discounted cash flows, Underlying collateral value Collateral discounts and estimated costs to sell 0% - 100% 35% December 31, 2019 Impaired loans $ 55 Discounted cash flows, Underlying collateral value Collateral discounts and estimated costs to sell 0% - 100% 31% The estimated fair values of the Company’s financial instruments are summarized in the table below as of the dates indicated (dollars in thousands). June 30, 2020 Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 130,964 $ 130,964 $ 130,964 $ — $ — Investment securities 260,939 261,151 — 233,593 27,558 Equity securities 19,398 19,398 2,518 16,880 — Loans, net of allowance 1,797,314 1,814,786 — — 1,814,786 Financial liabilities: Deposits, noninterest-bearing $ 469,095 $ 469,095 $ — $ 469,095 $ — Deposits, interest-bearing 1,420,493 1,485,774 — — 1,485,774 FHLB short-term advances and repurchase agreements 84,908 84,908 — 84,908 — FHLB long-term advances 78,500 77,870 — — 77,870 Junior subordinated debt 5,923 3,863 — — 3,863 Subordinated debt 43,600 42,480 — 42,480 — Derivative financial instruments 4,247 4,247 — 4,247 — December 31, 2019 Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 44,308 $ 44,308 $ 44,308 $ — $ — Federal funds sold 387 387 387 — — Investment securities 274,214 274,285 — 245,410 28,875 Equity securities 19,315 19,316 2,097 17,219 — Loans, net of allowance 1,681,275 1,680,364 — — 1,680,364 Derivative financial instruments 687 687 — 687 — Financial liabilities: Deposits, noninterest-bearing $ 351,905 $ 351,905 $ — $ 351,905 $ — Deposits, interest-bearing 1,355,801 1,368,194 — — 1,368,194 FHLB short-term advances and repurchase agreements 56,095 56,095 — 56,095 — FHLB long-term advances 78,500 76,635 — — 76,635 Junior subordinated debt 5,897 7,747 — — 7,747 Subordinated debt 43,600 56,399 — 56,399 —

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The expense for income taxes and the effective tax rate included in the consolidated statements of income are shown in the table below for the periods presented (dollars in thousands). Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Income tax expense $ 1,016 $ 1,216 $ 1,165 $ 2,168 Effective tax rate 19.2 % 19.8 % 19.3 % 19.7 % For both the three and six month periods ended June 30, 2020 and 2019, the effective tax rate differs from the statutory tax rate of 21% due to tax exempt interest income earned on certain investment securities.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Unfunded Commitments The Company is a party to financial instruments with off-balance-sheet risk entered into in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit consisting of loan commitments and standby letters of credit, which are not included in the accompanying financial statements. Such financial instruments are recorded in the financial statements when they become payable. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan losses. The reserve for unfunded loan commitments is included in other liabilities in the consolidated balance sheets and was $0.3 million and $0.1 million at June 30, 2020 and December 31, 2019, respectively. Commitments to extend credit are agreements to lend money with fixed expiration dates or termination clauses. The Company applies the same credit standards used in the lending process when extending these commitments, and periodically reassesses the customer’s creditworthiness through ongoing credit reviews. Since some commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Collateral is obtained based on the Company’s assessment of the transaction. Essentially all standby letters of credit issued have expiration dates within one year. The table below shows the approximate amounts of the Company’s commitments to extend credit as of the dates presented (dollars in thousands). June 30, 2020 December 31, 2019 Commitments to extend credit Loan commitments $ 311,744 $ 242,180 Standby letters of credit 13,245 11,475 Additionally, at June 30, 2020, the Company had unfunded commitments of $38,000 for its investment in Small Business Investment Company qualified funds.

LEASES

LEASES	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
LEASES	LEASES The Company’s primary leasing activities relate to certain real estate leases entered into in support of the Company’s branch operations. The Company assumed lease agreements as part of its expansion into Texas. Two of the three branches acquired from Mainland in 2019 and the two branches acquired from PlainsCapital in 2020 are leased properties. In addition, the Company has lease agreements for a de novo branch in the Lafayette, Louisiana market, which opened in 2019, and a future branch location expected to open in 2020. The Company’s branch locations operated under lease agreements have all been designated as operating leases. The Company does not lease equipment under operating leases, nor does it have leases designated as finance leases. The Company determines if an arrangement is a lease at inception. Operating leases, with the exception of short-term leases, are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in Bank premises and equipment, net and Accrued taxes and other liabilities, respectively, in the consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease pre-payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease. When it is reasonably certain that the Company will exercise an option to extend a lease, the extension is included in the lease term when calculating the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which the Company has elected to account for separately, as the non-lease component amounts are readily determinable. Quantitative information regarding the Company’s operating leases is presented below as of and for the six months ended June 30, 2020 (dollars in thousands). Total operating lease cost $ 293.0 Weighted-average remaining lease term (in years) 9.0 Weighted-average discount rate 2.8 % As of June 30, 2020, the Company’s lease ROU assets and related lease liabilities were $4.1 million and $4.2 million, respectively, and have remaining terms ranging from 4 to 11 years, including extension options if the Company is reasonably certain they will be exercised. Future minimum lease payments due under non-cancelable operating leases at June 30, 2020 are presented below (dollars in thousands). 2020 $ 289 2021 593 2022 598 2023 595 2024 515 Thereafter 2,168 Total $ 4,758 At June 30, 2020, the Company had not entered into any material leases that have not yet commenced. On May 29, 2020, the Bank purchased the first floor of its corporate headquarters building, which is currently occupied by multiple tenants. The Bank assumed the existing leases, all of which are operating leases. The Bank, as lessor, recognized rental income of $30,000 for the six months ended June 30, 2020.
LEASES	LEASES The Company’s primary leasing activities relate to certain real estate leases entered into in support of the Company’s branch operations. The Company assumed lease agreements as part of its expansion into Texas. Two of the three branches acquired from Mainland in 2019 and the two branches acquired from PlainsCapital in 2020 are leased properties. In addition, the Company has lease agreements for a de novo branch in the Lafayette, Louisiana market, which opened in 2019, and a future branch location expected to open in 2020. The Company’s branch locations operated under lease agreements have all been designated as operating leases. The Company does not lease equipment under operating leases, nor does it have leases designated as finance leases. The Company determines if an arrangement is a lease at inception. Operating leases, with the exception of short-term leases, are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in Bank premises and equipment, net and Accrued taxes and other liabilities, respectively, in the consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease pre-payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease. When it is reasonably certain that the Company will exercise an option to extend a lease, the extension is included in the lease term when calculating the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which the Company has elected to account for separately, as the non-lease component amounts are readily determinable. Quantitative information regarding the Company’s operating leases is presented below as of and for the six months ended June 30, 2020 (dollars in thousands). Total operating lease cost $ 293.0 Weighted-average remaining lease term (in years) 9.0 Weighted-average discount rate 2.8 % As of June 30, 2020, the Company’s lease ROU assets and related lease liabilities were $4.1 million and $4.2 million, respectively, and have remaining terms ranging from 4 to 11 years, including extension options if the Company is reasonably certain they will be exercised. Future minimum lease payments due under non-cancelable operating leases at June 30, 2020 are presented below (dollars in thousands). 2020 $ 289 2021 593 2022 598 2023 595 2024 515 Thereafter 2,168 Total $ 4,758 At June 30, 2020, the Company had not entered into any material leases that have not yet commenced. On May 29, 2020, the Bank purchased the first floor of its corporate headquarters building, which is currently occupied by multiple tenants. The Bank assumed the existing leases, all of which are operating leases. The Bank, as lessor, recognized rental income of $30,000 for the six months ended June 30, 2020.

TRANSACTIONS WITH RELATED PARTI

TRANSACTIONS WITH RELATED PARTIES	6 Months Ended
	Jun. 30, 2020
Related Party Transactions [Abstract]
TRANSACTIONS WITH RELATED PARTIES	TRANSACTIONS WITH RELATED PARTIESOn May 29, 2020, the Bank purchased the first floor of its corporate headquarters, located at 10500 Coursey Blvd. in Baton Rouge, Louisiana, from Court Plaza Investments, LLC, a related party entity that is controlled by one of the Company’s board members. Following the purchases of the second and third floors in previous years, the first floor was purchased for $1.8 million and gives the Bank complete ownership of the building, branded as the Investar Tower. The purchase price approximated the appraised value as determined by an independent appraiser.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of PresentationThe accompanying unaudited consolidated financial statements of Investar Holding Corporation (the “Company”) have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include information or footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with GAAP. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three and six month periods ended June 30, 2020 are not necessarily indicative of the results that may be expected for the entire fiscal year. These statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2019, including the notes thereto, which were included as part of the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 13, 2020.
Nature of Operations	Nature of OperationsThe Company, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, National Association (the “Bank”), a national bank, primarily to meet the needs of individuals and small to medium-sized businesses. The Company’s primary markets are south Louisiana, southeast Texas and west Alabama. At June 30, 2020, the Company operated 24 full service branches located in Louisiana, five full service branches located in Texas and two full service branches in southwest Alabama and had 336 employees.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences could be material. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the allowance for loan losses may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated. Other estimates that are susceptible to significant change in the near term relate to the determination of other-than-temporary impairments of securities, and the fair value of financial instruments and goodwill.
Investment Securities	Investment Securities The Company’s investments in debt securities are accounted for in accordance with applicable guidance contained in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), which requires the classification of securities into one of the following categories: • Securities to be held to maturity (“HTM”): bonds, notes, and debentures for which the Company has the positive intent and ability to hold to maturity are reported at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. • Securities available for sale (“AFS”): available for sale securities consist of bonds, notes, and debentures that are available to meet the Company’s operating needs. These securities are reported at fair value. Unrealized holding gains and losses, net of tax, on AFS debt securities are reported as a net amount in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Realized gains and losses on the sale of debt securities are determined using the specific-identification method. The Company follows FASB guidance related to the recognition and presentation of other-than-temporary impairment. The guidance specifies that if an entity does not have the intent to sell a debt security and it is not more likely than not that the Company will be required to sell the security prior to recovery, the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more likely than not that the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income.
Equity Securities	Equity Securities The Company is a member of the Federal Home Loan Bank (“FHLB”) system. Members of the FHLB are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, is restricted as to redemption, and is periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Equity securities also include investments in our other correspondent banks including Independent Bankers Financial Corporation and First National Bankers Bank stock. These investments are carried at cost which approximates fair value.
Loans	Loans The Company’s loan portfolio categories include real estate, commercial and consumer loans. Real estate loans are further categorized into construction and development, 1-4 family residential, multifamily, farmland and commercial real estate loans. The consumer loan category includes loans originated through indirect lending. Indirect lending, which is lending initiated through third-party business partners, is largely comprised of loans made through automotive dealerships. Loans for which management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off are stated at unpaid principal balances, adjusted by an allowance for loan losses. Interest on loans is calculated by using the simple interest method on daily balances of the principal amount outstanding. Loans are ordinarily placed on nonaccrual when a loan is specifically determined to be impaired or when principal or interest is delinquent for 90 days or more; however, management may elect to continue the accrual when the estimated net realizable value of collateral is sufficient to cover the principal balance and the accrued interest. Any unpaid interest previously accrued on nonaccrual loans is reversed from income. Interest income, generally, is not recognized on specific impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are applied as a reduction of the loan principal balance. Interest income on other nonaccrual loans is recognized only to the extent of interest payments received. A loan may be returned to accrual status when all the principal and interest amounts contractually due are brought current and future principal and interest amounts contractually due are reasonably assured, which is typically evidenced by a sustained period of repayment performance by the borrower. The Company considers a loan to be impaired when, based upon current information and events, it believes it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. The Company’s impaired loans include troubled debt restructurings and performing and non-performing loans for which full payment of principal or interest is not expected. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. The Company calculates an allowance required for impaired loans based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of its collateral. If the recorded investment in the impaired loan exceeds the measure of fair value, a valuation allowance is required as a component of the allowance for loan losses. Changes to the valuation allowance are recorded as a component of the provision for loan losses. See the Treatment of Loan Modifications Pursuant to the CARES Act and Interagency Statement section under Accounting Standards Adopted in 2020 below for further discussion on the accounting treatment for loans.
Allowance for Loan Losses	Allowance for Loan Losses The adequacy of the allowance for loan losses is determined in accordance with GAAP. The allowance for loan losses is estimated through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. The allowance is an amount that management believes will be adequate to absorb probable losses inherent in the loan portfolio as of the balance sheet date based on evaluations of the collectability of loans and prior loan loss experience. The evaluations take into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, and current economic conditions that may affect the borrower’s ability to pay. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. Allowances for impaired loans are generally determined based on collateral values or the present value of estimated cash flows. Credits deemed uncollectible are charged to the allowance. Provisions for loan losses and recoveries on loans previously charged off are added to the allowance. Past due status is determined based on contractual terms. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. Based on management’s review and observations made through qualitative review, management may apply qualitative adjustments to determine loss estimates at a group and/or portfolio segment level as deemed appropriate. Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in its portfolio and portfolio segments. The Company utilizes an internally developed model that requires judgment to determine the estimation method that fits the credit risk characteristics of the loans in its portfolio and portfolio segments. Qualitative and environmental factors that may not be directly reflected in quantitative estimates include: asset quality trends, changes in loan concentrations, new products and process changes, changes and pressures from competition, changes in lending policies and underwriting practices, trends in the nature and volume of the loan portfolio, changes in experience and depth of lending staff and management and national and regional economic trends. Changes in these factors are considered in determining changes in the allowance for loan losses. The impact of these factors on the Company’s qualitative assessment of the allowance for loan losses can change from period to period based on management’s assessment of the extent to which these factors are already reflected in historic loss rates. The uncertainty inherent in the estimation process is also considered in evaluating the allowance for loan losses.
Acquisition Accounting	Acquisition Accounting Business combinations are accounted for under the acquisition method of accounting. Purchased assets and assumed liabilities are recorded at their respective acquisition date fair values, and identifiable intangible assets are recorded at fair value. If the consideration given exceeds the fair value of the net assets received, goodwill is recognized. If the fair value of the net assets received exceeds the consideration given, a bargain purchase gain is recognized. Fair values are subject to refinement for up to one year after the closing date of an acquisition as information relative to closing date fair values becomes available. Loans acquired in a business combination are recorded at their estimated fair value as of the acquisition date. The fair value of loans acquired is determined using a discounted cash flow model based on assumptions regarding the amount and timing of principal and interest prepayments, estimated payments, estimated default rates, estimated loss severity in the event of defaults, and current market rates. Estimated credit losses are included in the determination of fair value; therefore, an allowance for loan losses is not recorded on the acquisition date. The fair value adjustment is amortized over the life of the loan using the effective interest method, except for those loans accounted for under ASC Topic 310-30, discussed below. An allowance for acquired loans not accounted for under ASC Topic 310-30 is only recorded to the extent that the reserve requirement exceeds the remaining fair value adjustment. The Company accounts for acquired impaired loans under ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality
Reclassifications	Reclassifications Certain reclassifications have been made to the 2019 financial statements to be consistent with the 2020 presentation, if applicable.
Concentrations of Credit Risk	Concentrations of Credit RiskThe Company’s loan portfolio consists of the various types of loans described in Note 5. Loans and Allowance for Loan Losses. Real estate or other assets secure most loans. The majority of loans have been made to individuals and businesses in the Company’s market of southeast Louisiana. Customers are dependent on the condition of the local economy for their livelihoods and servicing their loan obligations. The Company does not have any significant concentrations in any one industry or individual customer.
Accounting Standards Adopted in 2020 and Accounting Pronouncements Not Yet Adopted	Accounting Standards Adopted in 2020 FASB ASC Topic 820 “Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” Update No. 2018-13 . ASU 2018-13 became effective for the Company on January 1, 2020. The ASU modifies the existing guidance on disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. ASU 2018-13 removes the disclosure requirement detailing the amount of and reasons for transfers between Level 1 and Level 2 and the valuation processes for Level 3 fair value measurements. In addition, this ASU modifies the disclosure requirement for investments in certain entities that calculate net asset value. Lastly, ASU 2018-13 adds a disclosure requirement for changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. The impact of these amendments is limited to presentation and disclosure changes that did not have an impact on the Company’s consolidated financial statements. FASB ASC Topic 350 “Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment” ASU No. 2017-04. ASU 2017-04 became effective for the Company on January 1, 2020. The ASU simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Therefore, any carrying amount which exceeds the reporting unit’s fair value, up to the amount of goodwill recorded, will be recognized as an impairment loss. The amendment will be applied prospectively on or after the effective date. Based on recent annual goodwill impairments tests, performed in the fourth quarter of each year, which did not require the application of Step 2, the adoption of this ASU did not have a material impact. At March 31, 2020, we evaluated potential triggering events that may be indicators that our goodwill was impaired. The events included economic disruption and uncertainty surrounding the COVID-19 pandemic and the associated volatility in the financial markets which caused a significant decline in our market capitalization. As a result of the significant decline in our market capitalization in the first quarter of 2020, we performed an interim goodwill impairment test as of March 31, 2020. Factors considered in our impairment evaluation included the uncertainty related to the pandemic’s impact on our business and our customers’ businesses, the Company’s revised financial forecast in light of current market conditions, and changes in discount rates as a result of uncertainty in the market. Based on our evaluation, we concluded that our goodwill was not impaired as of March 31, 2020. As the economic disruption and uncertainty surrounding the COVID-19 pandemic, as well as the associated volatility in the financial markets continued through the second quarter of 2020, management continued to evaluate goodwill impairment indicators as of June 30, 2020. Based upon management’s procedures, including an assessment of changes to assumptions from the interim quantitative impairment analysis performed as of March 31, 2020, management determined that it was not more likely than not that the goodwill balance of $28.1 million at June 30, 2020 was impaired. A prolonged pandemic, or any other event that harms the global or U.S. economies, could adversely affect our operations and negatively impact our financial condition and results of operations, which may require further evaluation in subsequent reporting periods, prior to our annual impairment test performed in the fourth quarter, and could result in an impairment charge. Treatment of Loan Modifications Pursuant to the CARES Act and Interagency Statement Section 4013 of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) enacted on March 27, 2020 provides that from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 pandemic declared by the President of the United States under the National Emergencies Act terminates (the “applicable period”), we may elect to suspend GAAP for loan modifications related to the pandemic that would otherwise be categorized as troubled debt restructurings (“TDRs”) and suspend any determination of a loan modified as a result of the effects of the pandemic as being a TDR, including impairment for accounting purposes. The suspension is applicable for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019. The suspension is not applicable to any adverse impact on the credit of a borrower that is not related to the pandemic. In addition, our banking regulators and other financial regulators, on March 22, 2020 and revised April 7, 2020, issued a joint interagency statement titled the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of the COVID-19 pandemic. Pursuant to the interagency statement, loan modifications that do not meet the conditions of Section 4013 of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. Specifically, the agencies confirmed with the staff of the FASB that short-term modifications made in good faith in response to the pandemic to borrowers who were current prior to any relief are not TDRs under GAAP. This includes short-term (e.g. six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. Appropriate allowances for loan and lease losses are expected to be maintained. With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to the pandemic as past due because of the deferral. The interagency statement also states that during short-term pandemic-related loan modifications, these loans generally should not be reported as nonaccrual. Accordingly, we are offering short-term modifications made in response to COVID-19 to borrowers who are current and otherwise not past due. These include short-term modifications of 90 days or less, in the form of deferrals of payment of principal and interest, principal only, or interest only, and fee waivers. As of June 30, 2020, the balance of loans participating in the 90-day deferral program was $490.3 million, or 27% of the total loan portfolio. Of these loans, 73% have deferrals of principal and interest, 17% have deferrals of principal only, and 10% have deferrals of interest only. In accordance with Section 4013 of the CARES Act and the interagency statement, we have not accounted for such loans as TDRs, nor have we designated them as past due or nonaccrual. Accounting Pronouncements Not Yet Adopted FASB ASC Topic 326 “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments” Update No. 2016-13. The FASB issued ASU No. 2016-13 in June 2016. The ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. We are currently evaluating the potential impact of ASU 2016-13 on our financial statements. In that regard, we have formed a cross-functional working group, under the direction of our Chief Financial Officer and our Chief Risk Officer. The working group is comprised of individuals from various functional areas including credit, risk management, finance and information technology. We have developed an implementation plan to include assessment of processes, portfolio segmentation, model development, system requirements and the identification of data and resource needs, among other things. We have also selected a third-party vendor solution to assist us in the application of ASU 2016-13. The adoption of ASU 2016-13 is likely to result in an increase in the allowance for loan losses as a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate that we establish an allowance for expected credit losses on debt securities. While we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios, as well as the prevailing economic conditions and forecasts, as of the adoption date. This amendment was originally effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In July 2019, the FASB proposed changes that would delay the effective date for smaller reporting companies, as defined by the SEC, and other non-SEC reporting entities. In October 2019, the FASB voted in favor of finalizing its proposal to delay the effective date of this standard to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. ASU 2016-13 will be effective for the Company on January 1, 2023. The Company expects to adopt the standard as soon as practicable, based upon progress on the implementation plan. Adoption prior to the revised effective date of January 1, 2023 is permitted by the ASU. FASB ASC Topics 321, 323, and 815 “Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)” Update No. 2020-01. In January 2020, the FASB issued ASU 2020-01 to clarify the interaction among ASC 321, ASC 323, and ASC 815 for equity securities, equity method investments, and certain financial instruments to acquire equity securities. ASU 2020-01 clarifies whether re-measurement of equity investments is appropriate when observable transactions cause the equity method to be triggered or discontinued. ASU 2020-01 also provides that certain forward contracts and purchased options to acquire equity securities will be measured under ASC 321 without an assessment of subsequent accounting upon settlement or exercise. The amendment is effective for the Company on January 1, 2021. The Company does not expect the adoption of ASU 2020-01 to have a material impact on its consolidated financial statements. FASB ASC Topic 848 “Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting” Update No. 2020-04. In March 2020, the FASB issued ASU 2020-04, which is intended to provide temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. This guidance is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the provisions of the amendment and the impact on its future consolidated financial statements.

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	6 Months Ended
	Jun. 30, 2020
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The table below shows the allocation of the consideration paid for Mainland’s common equity to the acquired identifiable assets and liabilities assumed and the goodwill generated from the transaction (dollars in thousands). Purchase price: Stock issued $ 18,637 Fair value of assets acquired: Cash and cash equivalents 38,365 Loans 81,336 Other real estate owned 1,507 Bank premises and equipment 2,550 Core deposit intangible asset 2,439 Other assets 1,414 Total assets acquired 127,611 Fair value of liabilities acquired: Deposits 107,646 Repurchase agreements 4,684 Other liabilities 1,883 Total liabilities assumed 114,213 Fair value of net assets acquired 13,398 Goodwill $ 5,239 The table below shows the allocation of the consideration paid for Bank of York’s common equity to the acquired identifiable assets and liabilities assumed and the goodwill generated from the transaction (dollars in thousands). The fair values listed below, primarily related to loans and deferred tax assets and liabilities, are subject to refinement for up to one year after the closing date of the acquisition as additional information becomes available. Purchase price: Cash paid $ 15,000 Fair value of assets acquired: Cash and cash equivalents 50,776 Investments 451 Loans 46,086 Bank premises and equipment 917 Core deposit intangible asset 931 Bank owned life insurance 2,429 Other assets 344 Total assets acquired 101,934 Fair value of liabilities acquired: Deposits 85,004 Repurchase agreements 5,641 Other liabilities 1,306 Total liabilities assumed 91,951 Fair value of net assets acquired 9,983 Goodwill $ 5,017 The table below shows the allocation of the consideration paid for certain assets, deposits and other liabilities associated with the Alice and Victoria, Texas locations of PlainsCapital and the goodwill generated from the transaction (dollars in thousands). The fair values listed below, primarily related to loans and deferred tax assets and liabilities, are subject to refinement for up to one year after the closing date of the acquisition as additional information becomes available. Purchase price: Cash paid $ 11,114 Fair value of assets acquired: Cash and cash equivalents 353 Loans 45,287 Bank premises and equipment 2,770 Core deposit intangible asset 170 Other assets 127 Total assets acquired 48,707 Fair value of liabilities acquired: Deposits 36,973 Other liabilities 1,084 Total liabilities assumed 38,057 Fair value of net assets acquired 10,650 Goodwill $ 464

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Summary of Computation of Basic and Diluted Earnings Per Common Share	The following is a summary of the information used in the computation of basic and diluted earnings per share for the three and six months ended June 30, 2020 and 2019 (in thousands, except share data). Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Earnings per common share - basic Net income $ 4,274 $ 4,934 $ 4,882 $ 8,851 Less: income allocated to participating securities (21) (46) (28) (93) Net income allocated to common shareholders 4,253 4,888 4,854 8,758 Weighted-average basic shares outstanding 10,882,084 10,008,882 11,012,581 9,843,052 Basic earnings per common share $ 0.39 $ 0.49 $ 0.44 $ 0.89 Earnings per common share - diluted Net income allocated to common shareholders $ 4,253 $ 4,888 $ 4,854 $ 8,758 Weighted-average basic shares outstanding 10,882,084 10,008,882 11,012,581 9,843,052 Dilutive effect of securities — 95,364 26,373 95,076 Total weighted average diluted shares outstanding 10,882,084 10,104,246 11,038,954 9,938,128 Diluted earnings per common share $ 0.39 $ 0.48 $ 0.44 $ 0.88
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The weighted average shares that have an antidilutive effect in the calculation of diluted earnings per common share and have been excluded from the computations above are shown below. Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Stock options — — 43 — Restricted stock awards 28,360 519 9,565 4 Restricted stock units 102,064 868 74,847 21,915

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Schedule of Amortized Cost and Approximate Fair Value of Investment Securities Classified as Available for Sale	The amortized cost and approximate fair value of investment securities classified as AFS are summarized below as of the dates presented (dollars in thousands). Amortized Cost Gross Gross Fair June 30, 2020 Obligations of U.S. government agencies and corporations $ 41,987 $ 144 $ (130) $ 42,001 Obligations of state and political subdivisions 24,085 516 (113) 24,488 Corporate bonds 24,926 218 (492) 24,652 Residential mortgage-backed securities 86,502 3,134 — 89,636 Commercial mortgage-backed securities 64,675 1,645 (211) 66,109 Total $ 242,175 $ 5,657 $ (946) $ 246,886 Amortized Cost Gross Gross Fair December 31, 2019 Obligations of U.S. government agencies and corporations $ 33,651 $ 100 $ (100) $ 33,651 Obligations of state and political subdivisions 32,920 541 (12) 33,449 Corporate bonds 19,245 192 (274) 19,163 Residential mortgage-backed securities 100,948 1,083 (85) 101,946 Commercial mortgage-backed securities 71,340 564 (308) 71,596 Total $ 258,104 $ 2,480 $ (779) $ 259,805
Schedule of Proceeds from Sale of Investment Securities	Proceeds from sales of investment securities AFS and gross gains and losses are summarized below for the periods presented (dollars in thousands). Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Proceeds from sale $ 23,966 $ 62,171 $ 40,538 $ 62,564 Gross gains $ 1,179 $ 573 $ 1,361 $ 575 Gross losses $ (1) $ (346) $ (11) $ (346)
Schedule of Amortized Cost and Approximate Fair Value of Investment Securities Classified as Held to Maturity	The amortized cost and approximate fair value of investment securities classified as HTM are summarized below as of the dates presented (dollars in thousands). Amortized Cost Gross Gross Fair June 30, 2020 Obligations of state and political subdivisions $ 9,253 $ 8 $ — $ 9,261 Residential mortgage-backed securities 4,800 204 — 5,004 Total $ 14,053 $ 212 $ — $ 14,265 Amortized Cost Gross Gross Fair December 31, 2019 Obligations of state and political subdivisions $ 9,487 $ 14 $ — $ 9,501 Residential mortgage-backed securities 4,922 57 — 4,979 Total $ 14,409 $ 71 $ — $ 14,480
Schedule of Unrealized Losses and Fair Value by Investment Category for Securities Available for Sale	The number of AFS securities, fair value, and unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized below as of the dates presented (dollars in thousands). Less than 12 Months 12 Months or More Total Count Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized June 30, 2020 Obligations of U.S. government agencies and corporations 21 $ 20,689 $ (109) $ 4,035 $ (21) $ 24,724 $ (130) Obligations of state and political subdivisions 16 295 (1) 7,931 (112) 8,226 (113) Corporate bonds 23 5,252 (46) 7,304 (446) 12,556 (492) Residential mortgage-backed securities 1 293 — — — 293 — Commercial mortgage-backed securities 29 10,645 (102) 8,200 (109) 18,845 (211) Total 90 $ 37,174 $ (258) $ 27,470 $ (688) $ 64,644 $ (946) Less than 12 Months 12 Months or More Total Count Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized December 31, 2019 Obligations of U.S. government agencies and corporations 21 $ 19,980 $ (94) $ 955 $ (6) $ 20,935 $ (100) Obligations of state and political subdivisions 10 212 (1) 371 (11) 583 (12) Corporate bonds 21 495 (5) 7,829 (269) 8,324 (274) Residential mortgage-backed securities 32 12,341 (56) 6,190 (29) 18,531 (85) Commercial mortgage-backed securities 57 29,072 (274) 2,516 (34) 31,588 (308) Total 141 $ 62,100 $ (430) $ 17,861 $ (349) $ 79,961 $ (779)
Schedule of Weighted Average Tax Equivalent Yield, Amortized Cost and Approximate Fair Value of Investment Debt Securities by Contractual Maturity (Including Mortgage-backed Securities)	The amortized cost and approximate fair value of debt securities, by contractual maturity (including mortgage-backed securities), are shown below as of the dates presented (dollars in thousands). Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities Available For Sale Securities Held To Maturity Amortized Fair Amortized Fair June 30, 2020 Due within one year $ 962 $ 987 $ 790 $ 791 Due after one year through five years 10,794 10,833 3,575 3,580 Due after five years through ten years 68,954 68,738 4,888 4,890 Due after ten years 161,465 166,328 4,800 5,004 Total debt securities $ 242,175 $ 246,886 $ 14,053 $ 14,265 Securities Available For Sale Securities Held To Maturity Amortized Fair Amortized Fair December 31, 2019 Due within one year $ 2,174 $ 2,175 $ 790 $ 792 Due after one year through five years 13,525 13,675 3,575 3,582 Due after five years through ten years 66,551 66,568 5,122 5,126 Due after ten years 175,854 177,387 4,922 4,980 Total debt securities $ 258,104 $ 259,805 $ 14,409 $ 14,480

LOANS AND ALLOWANCE FOR LOAN _2

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)	6 Months Ended
	Jun. 30, 2020
Receivables [Abstract]
Schedule of Loan Portfolio Excluding Loans Held for Sale	The Company’s loan portfolio consists of the following categories of loans as of the dates presented (dollars in thousands). June 30, 2020 December 31, 2019 Construction and development $ 199,419 $ 197,797 1-4 Family 326,102 321,489 Multifamily 60,617 60,617 Farmland 28,845 27,780 Commercial real estate 783,559 731,060 Total mortgage loans on real estate 1,398,542 1,338,743 Commercial and industrial 390,085 323,786 Consumer 25,344 29,446 Total loans $ 1,813,971 $ 1,691,975
Schedule of Aging Analysis of Loans	The table below provides an analysis of the aging of loans as of the dates presented (dollars in thousands). June 30, 2020 Accruing Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Nonaccrual Total Past Due & Nonaccrual Acquired Impaired Loans Total Loans Construction and development $ 197,945 $ 389 $ — $ — $ 1,085 $ 1,474 $ — $ 199,419 1-4 Family 324,265 124 — — 1,315 1,439 398 326,102 Multifamily 59,964 653 — — — 653 — 60,617 Farmland 26,581 — — — — — 2,264 28,845 Commercial real estate 779,318 321 798 219 1,100 2,438 1,803 783,559 Total mortgage loans on real estate 1,388,073 1,487 798 219 3,500 6,004 4,465 1,398,542 Commercial and industrial 381,772 698 744 69 6,496 8,007 306 390,085 Consumer 24,746 25 28 1 503 557 41 25,344 Total loans $ 1,794,591 $ 2,210 $ 1,570 $ 289 $ 10,499 $ 14,568 $ 4,812 $ 1,813,971 December 31, 2019 Accruing Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Nonaccrual Total Past Due & Nonaccrual Acquired Impaired Loans Total Loans Construction and development $ 197,318 $ 133 $ 32 $ — $ 314 $ 479 $ — $ 197,797 1-4 Family 317,572 998 413 138 1,923 3,472 445 321,489 Multifamily 60,617 — — — — — — 60,617 Farmland 25,516 — — — — — 2,264 27,780 Commercial real estate 727,423 1,193 14 657 141 2,005 1,632 731,060 Total mortgage loans on real estate 1,328,446 2,324 459 795 2,378 5,956 4,341 1,338,743 Commercial and industrial 323,446 171 19 — 137 327 13 323,786 Consumer 28,443 339 95 — 531 965 38 29,446 Total loans $ 1,680,335 $ 2,834 $ 573 $ 795 $ 3,046 $ 7,248 $ 4,392 $ 1,691,975
Summary of the Company's Loan Portfolio by Category and Credit Quality Indicator	The table below presents the Company’s loan portfolio by category and credit quality indicator as of the dates presented (dollars in thousands). June 30, 2020 Pass Special Substandard Doubtful Total Construction and development $ 190,263 $ 7,860 $ 1,296 $ — $ 199,419 1-4 Family 324,046 371 1,685 — 326,102 Multifamily 60,617 — — — 60,617 Farmland 26,301 — 2,544 — 28,845 Commercial real estate 779,152 — 4,407 — 783,559 Total mortgage loans on real estate 1,380,379 8,231 9,932 — 1,398,542 Commercial and industrial 383,532 40 6,513 — 390,085 Consumer 24,764 77 503 — 25,344 Total loans $ 1,788,675 $ 8,348 $ 16,948 $ — $ 1,813,971 December 31, 2019 Pass Special Substandard Doubtful Total Construction and development $ 196,873 $ 610 $ 314 $ — $ 197,797 1-4 Family 318,549 714 2,198 28 321,489 Multifamily 60,617 — — — 60,617 Farmland 25,516 — 2,264 — 27,780 Commercial real estate 729,921 — 1,139 — 731,060 Total mortgage loans on real estate 1,331,476 1,324 5,915 28 1,338,743 Commercial and industrial 318,519 2,910 2,264 93 323,786 Consumer 28,775 128 543 — 29,446 Total loans $ 1,678,770 $ 4,362 $ 8,722 $ 121 $ 1,691,975
Schedule of Aggregate Amount of Loans to Related Parties	The table below shows the aggregate principal balance of loans to such related parties as of the dates presented (dollars in thousands). June 30, 2020 December 31, 2019 Balance, beginning of period $ 98,093 $ 93,021 New loans 8,617 20,903 Repayments and changes in relationship (9,097) (15,831) Balance, end of period $ 97,613 $ 98,093
Summary of Allowance for Loan Losses	The table below shows a summary of the activity in the allowance for loan losses for the three and six months ended June 30, 2020 and 2019 (dollars in thousands). Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Balance, beginning of period $ 14,233 $ 9,642 $ 10,700 $ 9,454 Provision for loan losses 2,500 369 6,260 634 Loans charged off (151) (120) (413) (224) Recoveries 75 33 110 60 Balance, end of period $ 16,657 $ 9,924 $ 16,657 $ 9,924 The following tables outline the activity in the allowance for loan losses by collateral type for the three and six months ended June 30, 2020 and 2019, and show both the allowance and portfolio balances for loans individually and collectively evaluated for impairment as of June 30, 2020 and 2019 (dollars in thousands). Three months ended June 30, 2020 Construction & Development Farmland 1-4 Family Multifamily Commercial Real Estate Commercial & Consumer Total Allowance for loan losses: Beginning balance $ 1,554 $ 163 $ 2,337 $ 351 $ 5,863 $ 3,287 $ 678 $ 14,233 Provision 495 44 496 135 1,311 46 (27) 2,500 Charge-offs — — — — (76) — (75) (151) Recoveries 9 — 5 — 31 3 27 75 Ending balance $ 2,058 $ 207 $ 2,838 $ 486 $ 7,129 $ 3,336 $ 603 $ 16,657 Three months ended June 30, 2019 Construction & Development Farmland 1-4 Family Multifamily Commercial Real Estate Commercial & Consumer Total Allowance for loan losses: Beginning balance $ 1,094 $ 101 $ 1,511 $ 380 $ 4,226 $ 1,673 $ 657 $ 9,642 Provision 34 (4) (77) (9) 53 424 (52) 369 Charge-offs (51) — — — — — (69) (120) Recoveries 15 — 5 — — 1 12 33 Ending balance $ 1,092 $ 97 $ 1,439 $ 371 $ 4,279 $ 2,098 $ 548 $ 9,924 Six months ended June 30, 2020 Construction & Development Farmland 1-4 Multifamily Commercial Real Estate Commercial & Industrial Consumer Total Allowance for loan losses: Beginning balance $ 1,201 $ 101 $ 1,490 $ 387 $ 4,424 $ 2,609 $ 488 $ 10,700 Provision 835 106 1,499 99 2,750 729 242 6,260 Charge-offs — — (160) — (76) (7) (170) (413) Recoveries 22 — 9 — 31 5 43 110 Ending balance $ 2,058 $ 207 $ 2,838 $ 486 $ 7,129 $ 3,336 $ 603 $ 16,657 Ending allowance balance for loans individually evaluated for impairment — — — — — 13 159 172 Ending allowance balance for loans acquired with deteriorated credit quality — — — — — — — — Ending allowance balance for loans collectively evaluated for impairment 2,058 207 2,838 486 7,129 3,323 444 16,485 Loans receivable: Balance of loans individually evaluated for impairment 1,082 — 1,237 — 4,220 7,051 487 14,077 Balance of loans acquired with deteriorated credit quality — 2,264 398 — 1,803 306 41 4,812 Balance of loans collectively evaluated for impairment 198,337 26,581 324,467 60,617 777,536 382,728 24,816 1,795,082 Total period-end balance $ 199,419 $ 28,845 $ 326,102 $ 60,617 $ 783,559 $ 390,085 $ 25,344 $ 1,813,971 Six months ended June 30, 2019 Construction & Development Farmland 1-4 Multifamily Commercial Real Estate Commercial & Industrial Consumer Total Allowance for loan losses: Beginning balance $ 1,038 $ 81 $ 1,465 $ 331 $ 4,182 $ 1,641 $ 716 $ 9,454 Provision 89 16 (33) 40 97 445 (20) 634 Charge-offs (51) — — — — — (173) (224) Recoveries 16 — 7 — — 12 25 60 Ending balance $ 1,092 $ 97 $ 1,439 $ 371 $ 4,279 $ 2,098 $ 548 $ 9,924 Ending allowance balance for loans individually evaluated for impairment 66 — — — — — 185 251 Ending allowance balance for loans acquired with deteriorated credit quality — — — — — — — — Ending allowance balance for loans collectively evaluated for impairment 1,026 97 1,439 371 4,279 2,098 363 9,673 Loans receivable: Balance of loans individually evaluated for impairment 346 — 1,312 — 878 6 658 3,200 Balance of loans acquired with deteriorated credit quality — 2,264 472 — 1,550 — 42 4,328 Balance of loans collectively evaluated for impairment 166,886 22,939 303,728 56,081 675,128 276,896 34,122 1,535,780 Total period-end balance $ 167,232 $ 25,203 $ 305,512 $ 56,081 $ 677,556 $ 276,902 $ 34,822 $ 1,543,308
Schedule of Impaired Loans	The following tables contain information on the Company’s impaired loans, which include TDRs, discussed in more detail below, and nonaccrual loans individually evaluated for impairment for purposes of determining the allowance for loan losses. The average balances are calculated based on the month-end balances of the loans during the period reported (dollars in thousands). June 30, 2020 Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Construction and development $ 1,082 $ 1,155 $ — 1-4 Family 1,237 1,242 — Commercial real estate 4,220 4,225 — Total mortgage loans on real estate 6,539 6,622 — Commercial and industrial 7,039 7,044 — Consumer 201 218 — Total 13,779 13,884 — With related allowance recorded: Commercial and industrial 12 13 13 Consumer 286 334 159 Total 298 347 172 Total loans: Construction and development 1,082 1,155 — 1-4 Family 1,237 1,242 — Commercial real estate 4,220 4,225 — Total mortgage loans on real estate 6,539 6,622 — Commercial and industrial 7,051 7,057 13 Consumer 487 552 159 Total $ 14,077 $ 14,231 $ 172 December 31, 2019 Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Construction and development $ 247 $ 269 $ — 1-4 Family 1,662 1,745 — Commercial real estate 47 50 — Total mortgage loans on real estate 1,956 2,064 — Commercial and industrial 93 96 Consumer 188 205 — Total 2,237 2,365 — With related allowance recorded: Consumer 310 347 141 Total 310 347 141 Total loans: Construction and development 247 269 — 1-4 Family 1,662 1,745 — Commercial real estate 47 50 — Total mortgage loans on real estate 1,956 2,064 — Commercial and industrial 93 96 — Consumer 498 552 141 Total $ 2,547 $ 2,712 $ 141 Presented in the tables below is the average recorded investment of the impaired loans and the related amount of interest income recognized during the time within the period that the loans were impaired. The average balances are calculated based on the month-end balances of the loans during the periods reported (dollars in thousands). Three months ended June 30, 2020 2019 Average Interest Average Interest With no related allowance recorded: Construction and development $ 1,089 $ 3 $ 265 $ 3 1-4 Family 1,262 7 1,281 7 Multifamily — — 36 — Commercial real estate 3,262 46 1,198 2 Total mortgage loans on real estate 5,613 56 2,780 12 Commercial and industrial 2,380 18 7 — Consumer 212 — 188 — Total 8,205 74 2,975 12 With related allowance recorded: Construction and development — — 114 — Total mortgage loans on real estate — — 114 — Commercial and industrial 12 — — — Consumer 289 — 479 — Total 301 — 593 — Total loans: Construction and development 1,089 3 379 3 1-4 Family 1,262 7 1,281 7 Multifamily — — 36 — Commercial real estate 3,262 46 1,198 2 Total mortgage loans on real estate 5,613 56 2,894 12 Commercial and industrial 2,392 18 7 — Consumer 501 — 667 — Total $ 8,506 $ 74 $ 3,568 $ 12 Six months ended June 30, 2020 2019 Average Interest Average Interest With no related allowance recorded: Construction and development $ 808 $ 5 $ 264 $ 8 1-4 Family 1,508 9 1,257 17 Multifamily — — 72 — Commercial real estate 1,655 46 1,079 4 Total mortgage loans on real estate 3,971 60 2,672 29 Commercial and industrial 1,244 18 14 — Consumer 208 — 258 — Total 5,423 78 2,944 29 With related allowance recorded: Construction and development — — 124 — Total mortgage loans on real estate — — 124 — Commercial and industrial 12 — — — Consumer 292 1 489 — Total 304 1 613 — Total loans: Construction and development 808 5 388 8 1-4 Family 1,508 9 1,257 17 Multifamily — — 72 — Commercial real estate 1,655 46 1,079 4 Total mortgage loans on real estate 3,971 60 2,796 29 Commercial and industrial 1,256 18 14 — Consumer 500 1 747 — Total $ 5,727 $ 79 $ 3,557 $ 29

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	Activity within the balances in accumulated other comprehensive income (loss) is shown in the tables below (dollars in thousands). Three months ended June 30, 2020 2019 Beginning of Period Net Change End of Period Beginning of Period Net Change End of Period Unrealized gain, available for sale, net $ 4,038 $ 2,883 $ 6,921 $ 565 $ 2,672 $ 3,237 Reclassification of realized gain, net (2,267) (931) (3,198) (1,927) (179) (2,106) Unrealized gain (loss), transfer from available for sale to held to maturity, net 4 (1) 3 5 — 5 Change in fair value of interest rate swap designated as a cash flow hedge, net (1,969) (1,387) (3,356) 324 (247) 77 Accumulated other comprehensive (loss) income $ (194) $ 564 $ 370 $ (1,033) $ 2,246 $ 1,213 Six months ended June 30, 2020 2019 Beginning of Period Net Change End of Period Beginning of Period Net Change End of Period Unrealized gain (loss), available for sale, net $ 3,476 $ 3,445 $ 6,921 $ (1,647) $ 4,884 $ 3,237 Reclassification of realized gain, net (2,131) (1,067) (3,198) (1,925) (181) (2,106) Unrealized gain (loss), transfer from available for sale to held to maturity, net 4 (1) 3 5 — 5 Change in fair value of interest rate swap designated as a cash flow hedge, net 542 (3,898) (3,356) 491 (414) 77 Accumulated other comprehensive income (loss) $ 1,891 $ (1,521) $ 370 $ (3,076) $ 4,289 $ 1,213

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Schedule of Assumptions Used for Option Awards Granted	The assumptions presented below were used for the options granted during the six months ended June 30, 2020. Expected dividends 1.12 % Expected volatility 26.39 % Risk-free interest rate 0.99 % Expected term (in years) 6.5 Weighted-average grant date fair value $ 5.17
Schedule of Stock Option Activity	The table below summarizes stock option activity for the periods presented. Six months ended June 30, 2020 2019 Number Weighted Average Number Weighted Average Outstanding at beginning of period 357,214 $ 16.96 340,646 $ 15.98 Granted 58,993 21.36 36,984 24.40 Forfeited (4,585) 14.00 — — Exercised (3,334) 14.00 (1,916) 14.60 Outstanding at end of period 408,288 $ 17.66 375,714 $ 16.82 Exercisable at end of period 249,435 $ 15.85 196,111 $ 15.27
Restricted Stock Award Activity	The restricted stock and restricted stock unit activity is shown below for the periods presented. Six months ended June 30, 2020 2019 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Balance at beginning of period 168,216 $ 22.43 135,848 $ 20.47 Granted 100,850 21.56 76,809 24.45 Forfeited (9,484) 21.92 (5,828) 23.70 Earned and issued (52,381) 21.39 (39,861) 19.84 Balance at end of period 207,201 $ 22.29 166,968 $ 22.33

FAIR VALUES OF FINANCIAL INST_2

FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis	Assets and liabilities measured at fair value on a recurring basis are summarized in the table below as of the dates indicated (dollars in thousands). Estimated Quoted Prices in Significant Other Significant June 30, 2020 Assets: Obligations of U.S. government agencies and corporations $ 42,001 $ — $ 42,001 $ — Obligations of state and political subdivisions 24,488 — 6,192 18,296 Corporate bonds 24,652 — 24,652 — Residential mortgage-backed securities 89,636 — 89,636 — Commercial mortgage-backed securities 66,109 — 66,109 — Equity securities 2,518 2,518 — — Total assets $ 249,404 $ 2,518 $ 228,590 $ 18,296 Liabilities: Derivative financial instruments $ 4,247 $ — $ 4,247 $ — December 31, 2019 Assets: Obligations of U.S. government agencies and corporations $ 33,651 $ — $ 33,651 $ — Obligations of state and political subdivisions 33,449 — 14,074 19,375 Corporate bonds 19,163 — 19,163 — Residential mortgage-backed securities 101,946 — 101,946 — Commercial mortgage-backed securities 71,596 — 71,596 — Equity securities 2,097 2,097 — — Derivative financial instruments 687 — 687 — Total assets $ 262,589 $ 2,097 $ 241,117 $ 19,375
Summary of Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs	The tables below provide a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs, or level 3 inputs, for the six months ended June 30, 2020 and June 30, 2019 (dollars in thousands). Obligations of State and Balance at December 31, 2019 $ 19,375 Realized gains (losses) included in earnings — Unrealized losses included in other comprehensive income (loss) (1,079) Purchases — Sales — Maturities, prepayments, and calls — Transfers into level 3 — Transfers out of level 3 — Balance at June 30, 2020 $ 18,296 Obligations of State and Corporate Bonds Total Balance at December 31, 2018 $ 18,808 $ 1,335 $ 20,143 Realized gains (losses) included in earnings — — — Unrealized gains (losses) included in other comprehensive income (loss) 506 (13) 493 Purchases — — — Sales — — — Maturities, prepayments, and calls (23) — (23) Transfers into level 3 — — — Transfers out of level 3 — — — Balance at June 30, 2019 $ 19,291 $ 1,322 $ 20,613
Quantitative Information About Significant Unobservable Inputs Used In Fair Value Measurements	The following table provides quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured at fair value on a recurring basis at June 30, 2020 or December 31, 2019 (dollars in thousands): Estimated Valuation Technique Unobservable Inputs Range of Discounts June 30, 2020 Obligations of State and Political Subdivisions $ 18,296 Option-adjusted discounted cash flow model; present value of expected future cash flow model Bond Appraisal Adjustment (1) 0% - 7% (1) Fair values determined through valuation analysis using coupon, yield (discount margin), liquidity and expected repayment dates. Estimated Valuation Technique Unobservable Inputs Range of Discounts Weighted Average Discount June 30, 2020 Impaired loans $ 91 Discounted cash flows, Underlying collateral value Collateral discounts and estimated costs to sell 0% - 100% 35% December 31, 2019 Impaired loans $ 55 Discounted cash flows, Underlying collateral value Collateral discounts and estimated costs to sell 0% - 100% 31%
Summary of Estimated Fair Values of Company's Financial Instruments	The estimated fair values of the Company’s financial instruments are summarized in the table below as of the dates indicated (dollars in thousands). June 30, 2020 Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 130,964 $ 130,964 $ 130,964 $ — $ — Investment securities 260,939 261,151 — 233,593 27,558 Equity securities 19,398 19,398 2,518 16,880 — Loans, net of allowance 1,797,314 1,814,786 — — 1,814,786 Financial liabilities: Deposits, noninterest-bearing $ 469,095 $ 469,095 $ — $ 469,095 $ — Deposits, interest-bearing 1,420,493 1,485,774 — — 1,485,774 FHLB short-term advances and repurchase agreements 84,908 84,908 — 84,908 — FHLB long-term advances 78,500 77,870 — — 77,870 Junior subordinated debt 5,923 3,863 — — 3,863 Subordinated debt 43,600 42,480 — 42,480 — Derivative financial instruments 4,247 4,247 — 4,247 — December 31, 2019 Carrying Estimated Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 44,308 $ 44,308 $ 44,308 $ — $ — Federal funds sold 387 387 387 — — Investment securities 274,214 274,285 — 245,410 28,875 Equity securities 19,315 19,316 2,097 17,219 — Loans, net of allowance 1,681,275 1,680,364 — — 1,680,364 Derivative financial instruments 687 687 — 687 — Financial liabilities: Deposits, noninterest-bearing $ 351,905 $ 351,905 $ — $ 351,905 $ — Deposits, interest-bearing 1,355,801 1,368,194 — — 1,368,194 FHLB short-term advances and repurchase agreements 56,095 56,095 — 56,095 — FHLB long-term advances 78,500 76,635 — — 76,635 Junior subordinated debt 5,897 7,747 — — 7,747 Subordinated debt 43,600 56,399 — 56,399 —

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Summary of Expense for Income Taxes and Effective Tax Rate Included in Consolidated Statement of Operations	The expense for income taxes and the effective tax rate included in the consolidated statements of income are shown in the table below for the periods presented (dollars in thousands). Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Income tax expense $ 1,016 $ 1,216 $ 1,165 $ 2,168 Effective tax rate 19.2 % 19.8 % 19.3 % 19.7 %

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Summary of Commitments to Extend Credit	The table below shows the approximate amounts of the Company’s commitments to extend credit as of the dates presented (dollars in thousands). June 30, 2020 December 31, 2019 Commitments to extend credit Loan commitments $ 311,744 $ 242,180 Standby letters of credit 13,245 11,475

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Quantitative Information Regarding Operating Leases	Quantitative information regarding the Company’s operating leases is presented below as of and for the six months ended June 30, 2020 (dollars in thousands). Total operating lease cost $ 293.0 Weighted-average remaining lease term (in years) 9.0 Weighted-average discount rate 2.8 %
Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases	Future minimum lease payments due under non-cancelable operating leases at June 30, 2020 are presented below (dollars in thousands). 2020 $ 289 2021 593 2022 598 2023 595 2024 515 Thereafter 2,168 Total $ 4,758

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)employeebranch_location	Dec. 31, 2019USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of employees | employee	336
Equity securities	$ 19,398	$ 19,315
Unfunded loan commitments	300	100
Goodwill	$ 28,100
Short-term modification deferral plan	90 days
Loans placed on deferral-plan	$ 490,300
Percentage of deferrals of principal and interest	73.00%
Percentage of deferrals of principal only	17.00%
Percentage of deferrals of interest only	10.00%
Total Loan Portfolio | Credit Concentration Risk
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Percentage placed on deferral plan	27.00%
Equity Securities Held in Correspondent Banks
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity securities	$ 16,900	17,200
Corporate Stock and Mutual Funds
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity securities	$ 2,500	$ 2,100
Louisiana
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of full service banking offices | branch_location	24
Texas
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of full service banking offices | branch_location	5
Alabama
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of full service banking offices | branch_location	2

BUSINESS COMBINATIONS - Narrati

BUSINESS COMBINATIONS - Narrative (Details) $ in Thousands	Feb. 21, 2020USD ($)branch_location	Nov. 01, 2019USD ($)branch_location	Mar. 01, 2019USD ($)branch_locationshares	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)
Business Acquisition [Line Items]
Goodwill				$ 28,100		$ 28,100
Cash paid						10,761	$ 0
Acquisition expense				255	$ 0	1,006	$ 905
Mainland
Business Acquisition [Line Items]
Percentage of voting interests acquired			100.00%
Merger consideration, aggregate shares of common stock (in shares) | shares			763,849
Total consideration transferred			$ 18,600
Total assets acquired			127,611
Loans			81,336
Deposits			107,646
Goodwill			$ 5,239
Number of branch locations | branch_location			3
Contractually required principal and interest payments of the loans acquired			$ 92,400
Loans acquired that are considered to be purchased credit impaired loans			2,800
Contractually required principal and interest payments of the impaired loans acquired			3,100
Impaired loans not expected to be collected			$ 1,700
Bank of York
Business Acquisition [Line Items]
Percentage of voting interests acquired		100.00%
Total assets acquired		$ 101,934		101,900		101,900
Loans		46,086		46,100		46,100
Deposits		85,004		85,000		85,000
Goodwill		$ 5,017		5,000		$ 5,000
Number of branch locations | branch_location		2
Contractually required principal and interest payments of the loans acquired		$ 51,500
Cash paid		15,000
Adjustment to loans				$ 700
Bank of York | Financial Asset Acquired with Credit Deterioration
Business Acquisition [Line Items]
Contractually required principal and interest payments of the loans acquired		300
Purchased credit impaired loans		300
Loans not expected to be collected		$ 100
Plains Capital Bank
Business Acquisition [Line Items]
Total assets acquired	$ 48,707
Loans	45,287
Deposits	36,973
Goodwill	$ 464
Number of branch locations | branch_location	2
Contractually required principal and interest payments of the loans acquired	$ 51,300
Cash paid	$ 11,114

BUSINESS COMBINATIONS - Schedul

BUSINESS COMBINATIONS - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Feb. 21, 2020	Nov. 01, 2019	Mar. 01, 2019	Jun. 30, 2020	Jun. 30, 2019
Purchase price:
Cash paid				$ 10,761	$ 0
Fair value of liabilities acquired:
Goodwill				28,100
Mainland
Purchase price:
Stock issued			$ 18,637
Fair value of assets acquired:
Cash and cash equivalents			38,365
Loans			81,336
Other real estate owned			1,507
Bank premises and equipment			2,550
Core deposit intangible asset			2,439
Other assets			1,414
Total assets acquired			127,611
Fair value of liabilities acquired:
Deposits			107,646
Repurchase agreements			4,684
Other liabilities			1,883
Total liabilities assumed			114,213
Fair value of net assets acquired			13,398
Goodwill			$ 5,239
Bank of York
Purchase price:
Cash paid		$ 15,000
Fair value of assets acquired:
Cash and cash equivalents		50,776
Investments		451
Loans		46,086		46,100
Bank premises and equipment		917
Core deposit intangible asset		931
Bank owned life insurance		2,429
Other assets		344
Total assets acquired		101,934		101,900
Fair value of liabilities acquired:
Deposits		85,004		85,000
Repurchase agreements		5,641
Other liabilities		1,306
Total liabilities assumed		91,951
Fair value of net assets acquired		9,983
Goodwill		$ 5,017		$ 5,000
Plains Capital Bank
Purchase price:
Cash paid	$ 11,114
Fair value of assets acquired:
Cash and cash equivalents	353
Loans	45,287
Bank premises and equipment	2,770
Core deposit intangible asset	170
Other assets	127
Total assets acquired	48,707
Fair value of liabilities acquired:
Deposits	36,973
Other liabilities	1,084
Total liabilities assumed	38,057
Fair value of net assets acquired	10,650
Goodwill	$ 464

EARNINGS PER SHARE - Computatio

EARNINGS PER SHARE - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings per common share - basic
Net income	$ 4,274	$ 4,934	$ 4,882	$ 8,851
Less: income allocated to participating securities	(21)	(46)	(28)	(93)
Net income allocated to common shareholders	$ 4,253	$ 4,888	$ 4,854	$ 8,758
Weighted-average basic shares outstanding (in shares)	10,882,084	10,008,882	11,012,581	9,843,052
Basic earnings per common share (in dollars per share)	$ 0.39	$ 0.49	$ 0.44	$ 0.89
Earnings per common share - diluted
Net income allocated to common shareholders	$ 4,253	$ 4,888	$ 4,854	$ 8,758
Weighted-average basic shares outstanding (in shares)	10,882,084	10,008,882	11,012,581	9,843,052
Dilutive effect of securities (in shares)	0	95,364	26,373	95,076
Total weighted average diluted shares outstanding (in shares)	10,882,084	10,104,246	11,038,954	9,938,128
Diluted earnings per common share (in dollars per share)	$ 0.39	$ 0.48	$ 0.44	$ 0.88

EARNINGS PER SHARE - Antidiluti

EARNINGS PER SHARE - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)	0	0	43	0
Restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)	28,360	519	9,565	4
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)	102,064	868	74,847	21,915

INVESTMENT SECURITIES - Schedul

INVESTMENT SECURITIES - Schedule of Amortized Cost and Approximate Fair Value of Investment Securities Classified as Available for Sale (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 242,175	$ 258,104
Gross Unrealized Gains	5,657	2,480
Gross Unrealized Losses	(946)	(779)
Fair Value	246,886	259,805
Obligations of U.S. government agencies and corporations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	41,987	33,651
Gross Unrealized Gains	144	100
Gross Unrealized Losses	(130)	(100)
Fair Value	42,001	33,651
Obligations of state and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	24,085	32,920
Gross Unrealized Gains	516	541
Gross Unrealized Losses	(113)	(12)
Fair Value	24,488	33,449
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	24,926	19,245
Gross Unrealized Gains	218	192
Gross Unrealized Losses	(492)	(274)
Fair Value	24,652	19,163
Residential mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	86,502	100,948
Gross Unrealized Gains	3,134	1,083
Gross Unrealized Losses	0	(85)
Fair Value	89,636	101,946
Commercial mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	64,675	71,340
Gross Unrealized Gains	1,645	564
Gross Unrealized Losses	(211)	(308)
Fair Value	$ 66,109	$ 71,596

INVESTMENT SECURITIES - Sched_2

INVESTMENT SECURITIES - Schedule of Proceeds from Sale of Investment Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Investments, Debt and Equity Securities [Abstract]
Proceeds from sale	$ 23,966	$ 62,171	$ 40,538	$ 62,564
Gross gains	1,179	573	1,361	575
Gross losses	$ (1)	$ (346)	$ (11)	$ (346)

INVESTMENT SECURITIES - Sched_3

INVESTMENT SECURITIES - Schedule of Amortized Cost and Approximate Fair Value of Investment Securities Classified as Held to Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 14,053	$ 14,409
Gross Unrealized Gains	212	71
Gross Unrealized Losses	0	0
Fair Value	14,265	14,480
Obligations of state and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	9,253	9,487
Gross Unrealized Gains	8	14
Gross Unrealized Losses	0	0
Fair Value	9,261	9,501
Residential mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	4,800	4,922
Gross Unrealized Gains	204	57
Gross Unrealized Losses	0	0
Fair Value	$ 5,004	$ 4,979

INVESTMENT SECURITIES - Narrati

INVESTMENT SECURITIES - Narrative (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Securities classified as trading securities	$ 0	$ 0
Pledged securities	$ 114,200,000	$ 89,500,000

INVESTMENT SECURITIES - Sched_4

INVESTMENT SECURITIES - Schedule of Unrealized Losses and Fair Value by Investment Category for Securities Available for Sale (Details) $ in Thousands	Jun. 30, 2020USD ($)security	Dec. 31, 2019USD ($)security
Count
Total | security	90	141
Fair Value
Less than 12 Months	$ 37,174	$ 62,100
12 Months or More	27,470	17,861
Total	64,644	79,961
Unrealized Losses
Less than 12 Months	(258)	(430)
12 Months or More	(688)	(349)
Total	$ (946)	$ (779)
Obligations of U.S. government agencies and corporations
Count
Total | security	21	21
Fair Value
Less than 12 Months	$ 20,689	$ 19,980
12 Months or More	4,035	955
Total	24,724	20,935
Unrealized Losses
Less than 12 Months	(109)	(94)
12 Months or More	(21)	(6)
Total	$ (130)	$ (100)
Obligations of state and political subdivisions
Count
Total | security	16	10
Fair Value
Less than 12 Months	$ 295	$ 212
12 Months or More	7,931	371
Total	8,226	583
Unrealized Losses
Less than 12 Months	(1)	(1)
12 Months or More	(112)	(11)
Total	$ (113)	$ (12)
Corporate bonds
Count
Total | security	23	21
Fair Value
Less than 12 Months	$ 5,252	$ 495
12 Months or More	7,304	7,829
Total	12,556	8,324
Unrealized Losses
Less than 12 Months	(46)	(5)
12 Months or More	(446)	(269)
Total	$ (492)	$ (274)
Residential mortgage-backed securities
Count
Total | security	1	32
Fair Value
Less than 12 Months	$ 293	$ 12,341
12 Months or More	0	6,190
Total	293	18,531
Unrealized Losses
Less than 12 Months	0	(56)
12 Months or More	0	(29)
Total	$ 0	$ (85)
Commercial mortgage-backed securities
Count
Total | security	29	57
Fair Value
Less than 12 Months	$ 10,645	$ 29,072
12 Months or More	8,200	2,516
Total	18,845	31,588
Unrealized Losses
Less than 12 Months	(102)	(274)
12 Months or More	(109)	(34)
Total	$ (211)	$ (308)

INVESTMENT SECURITIES - Sched_5

INVESTMENT SECURITIES - Schedule of Amortized Cost and Approximate Fair Value of Investment Debt Securities by Contractual Maturity (Including Mortgage-backed Securities) (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Amortized Cost
Due within one year	$ 962	$ 2,174
Due after one year through five years	10,794	13,525
Due after five years through ten years	68,954	66,551
Due after ten years	161,465	175,854
Amortized Cost	242,175	258,104
Fair Value
Due within one year	987	2,175
Due after one year through five years	10,833	13,675
Due after five years through ten years	68,738	66,568
Due after ten years	166,328	177,387
Total debt securities	246,886	259,805
Amortized Cost
Due within one year	790	790
Due after one year through five years	3,575	3,575
Due after five years through ten years	4,888	5,122
Due after ten years	4,800	4,922
Amortized Cost	14,053	14,409
Fair Value
Due within one year	791	792
Due after one year through five years	3,580	3,582
Due after five years through ten years	4,890	5,126
Due after ten years	5,004	4,980
Total debt securities	$ 14,265	$ 14,480

LOANS AND ALLOWANCE FOR LOAN _3

LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Loan Portfolio Excluding Loans Held for Sale (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 1,813,971	$ 1,691,975	$ 1,543,308
Total mortgage loans on real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,398,542	1,338,743
Total mortgage loans on real estate | Construction and development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	199,419	197,797	167,232
Total mortgage loans on real estate | 1-4 Family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	326,102	321,489	305,512
Total mortgage loans on real estate | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	60,617	60,617
Total mortgage loans on real estate | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	28,845	27,780	25,203
Total mortgage loans on real estate | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	783,559	731,060	677,556
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	390,085	323,786	276,902
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 25,344	$ 29,446	$ 34,822

LOANS AND ALLOWANCE FOR LOAN _4

LOANS AND ALLOWANCE FOR LOAN LOSSES - Narrative (Details) - USD ($)	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unamortized premiums and discounts	$ 2,100,000	$ 2,100,000
Total loans	$ 1,813,971,000	1,691,975,000	$ 1,543,308,000
Short-term modification deferral plan	90 days
Balances of loans sold to and serviced for others	$ 63,100,000	82,800,000
Unpaid principal balances of loans sold to and serviced for others	139,900,000	174,700,000
Loan outstanding to related parties	97,613,000	98,093,000		$ 93,021,000
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	390,085,000	323,786,000	$ 276,902,000
PPP Loans | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	109,500,000
Loss
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 0	$ 0

LOANS AND ALLOWANCE FOR LOAN _5

LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Aging Analysis of Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Financing Receivable, Past Due [Line Items]
Current	$ 1,794,591	$ 1,680,335
Nonaccrual	10,499	3,046
Total Past Due & Nonaccrual	14,568	7,248
Acquired Impaired Loans	4,812	4,392
Total period-end balance	1,813,971	1,691,975	$ 1,543,308
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	2,210	2,834
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	1,570	573
90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	289	795
Total mortgage loans on real estate
Financing Receivable, Past Due [Line Items]
Current	1,388,073	1,328,446
Nonaccrual	3,500	2,378
Total Past Due & Nonaccrual	6,004	5,956
Acquired Impaired Loans	4,465	4,341
Total period-end balance	1,398,542	1,338,743
Total mortgage loans on real estate | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	1,487	2,324
Total mortgage loans on real estate | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	798	459
Total mortgage loans on real estate | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	219	795
Total mortgage loans on real estate | Construction and development
Financing Receivable, Past Due [Line Items]
Current	197,945	197,318
Nonaccrual	1,085	314
Total Past Due & Nonaccrual	1,474	479
Acquired Impaired Loans	0	0
Total period-end balance	199,419	197,797	167,232
Total mortgage loans on real estate | Construction and development | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	389	133
Total mortgage loans on real estate | Construction and development | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	0	32
Total mortgage loans on real estate | Construction and development | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	0	0
Total mortgage loans on real estate | 1-4 Family
Financing Receivable, Past Due [Line Items]
Current	324,265	317,572
Nonaccrual	1,315	1,923
Total Past Due & Nonaccrual	1,439	3,472
Acquired Impaired Loans	398	445
Total period-end balance	326,102	321,489	305,512
Total mortgage loans on real estate | 1-4 Family | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	124	998
Total mortgage loans on real estate | 1-4 Family | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	0	413
Total mortgage loans on real estate | 1-4 Family | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	0	138
Total mortgage loans on real estate | Multifamily
Financing Receivable, Past Due [Line Items]
Current	59,964	60,617
Nonaccrual	0	0
Total Past Due & Nonaccrual	653	0
Acquired Impaired Loans	0	0
Total period-end balance	60,617	60,617
Total mortgage loans on real estate | Multifamily | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	653	0
Total mortgage loans on real estate | Multifamily | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	0	0
Total mortgage loans on real estate | Multifamily | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	0	0
Total mortgage loans on real estate | Farmland
Financing Receivable, Past Due [Line Items]
Current	26,581	25,516
Nonaccrual	0	0
Total Past Due & Nonaccrual	0	0
Acquired Impaired Loans	2,264	2,264
Total period-end balance	28,845	27,780	25,203
Total mortgage loans on real estate | Farmland | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	0	0
Total mortgage loans on real estate | Farmland | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	0	0
Total mortgage loans on real estate | Farmland | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	0	0
Total mortgage loans on real estate | Commercial real estate
Financing Receivable, Past Due [Line Items]
Current	779,318	727,423
Nonaccrual	1,100	141
Total Past Due & Nonaccrual	2,438	2,005
Acquired Impaired Loans	1,803	1,632
Total period-end balance	783,559	731,060	677,556
Total mortgage loans on real estate | Commercial real estate | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	321	1,193
Total mortgage loans on real estate | Commercial real estate | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	798	14
Total mortgage loans on real estate | Commercial real estate | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	219	657
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Current	381,772	323,446
Nonaccrual	6,496	137
Total Past Due & Nonaccrual	8,007	327
Acquired Impaired Loans	306	13
Total period-end balance	390,085	323,786	276,902
Commercial and industrial | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	698	171
Commercial and industrial | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	744	19
Commercial and industrial | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	69	0
Consumer
Financing Receivable, Past Due [Line Items]
Current	24,746	28,443
Nonaccrual	503	531
Total Past Due & Nonaccrual	557	965
Acquired Impaired Loans	41	38
Total period-end balance	25,344	29,446	$ 34,822
Consumer | 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	25	339
Consumer | 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	28	95
Consumer | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past due and accruing	$ 1	$ 0

LOANS AND ALLOWANCE FOR LOAN _6

LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of the Company's Loan Portfolio by Category and Credit Quality Indicator (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	$ 1,813,971	$ 1,691,975	$ 1,543,308
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	1,788,675	1,678,770
Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	8,348	4,362
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	16,948	8,722
Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	0	121
Total mortgage loans on real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	1,398,542	1,338,743
Total mortgage loans on real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	1,380,379	1,331,476
Total mortgage loans on real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	8,231	1,324
Total mortgage loans on real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	9,932	5,915
Total mortgage loans on real estate | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	0	28
Total mortgage loans on real estate | Construction and development
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	199,419	197,797	167,232
Total mortgage loans on real estate | Construction and development | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	190,263	196,873
Total mortgage loans on real estate | Construction and development | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	7,860	610
Total mortgage loans on real estate | Construction and development | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	1,296	314
Total mortgage loans on real estate | Construction and development | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	0	0
Total mortgage loans on real estate | 1-4 Family
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	326,102	321,489	305,512
Total mortgage loans on real estate | 1-4 Family | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	324,046	318,549
Total mortgage loans on real estate | 1-4 Family | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	371	714
Total mortgage loans on real estate | 1-4 Family | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	1,685	2,198
Total mortgage loans on real estate | 1-4 Family | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	0	28
Total mortgage loans on real estate | Multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	60,617	60,617	56,081
Total mortgage loans on real estate | Multifamily | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	60,617	60,617
Total mortgage loans on real estate | Multifamily | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	0	0
Total mortgage loans on real estate | Multifamily | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	0	0
Total mortgage loans on real estate | Multifamily | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	0	0
Total mortgage loans on real estate | Farmland
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	28,845	27,780	25,203
Total mortgage loans on real estate | Farmland | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	26,301	25,516
Total mortgage loans on real estate | Farmland | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	0	0
Total mortgage loans on real estate | Farmland | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	2,544	2,264
Total mortgage loans on real estate | Farmland | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	0	0
Total mortgage loans on real estate | Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	783,559	731,060	677,556
Total mortgage loans on real estate | Commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	779,152	729,921
Total mortgage loans on real estate | Commercial real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	0	0
Total mortgage loans on real estate | Commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	4,407	1,139
Total mortgage loans on real estate | Commercial real estate | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	0	0
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	390,085	323,786	276,902
Commercial and industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	383,532	318,519
Commercial and industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	40	2,910
Commercial and industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	6,513	2,264
Commercial and industrial | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	0	93
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	25,344	29,446	$ 34,822
Consumer | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	24,764	28,775
Consumer | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	77	128
Consumer | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	503	543
Consumer | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	$ 0	$ 0

LOANS AND ALLOWANCE FOR LOAN _7

LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Aggregate Amount of Loans to Related Parties (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Loans and Leases Receivable, Related Parties [Roll Forward]
Balance, beginning of period	$ 98,093	$ 93,021
New loans	8,617	20,903
Repayments and changes in relationship	(9,097)	(15,831)
Balance, end of period	$ 97,613	$ 98,093

LOANS AND ALLOWANCE FOR LOAN _8

LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Allowance for loan losses:
Beginning balance	$ 14,233	$ 9,642	$ 10,700	$ 9,454
Provision	2,500	369	6,260	634
Charge-offs	(151)	(120)	(413)	(224)
Recoveries	75	33	110	60
Ending balance	16,657	9,924	16,657	9,924
Ending allowance balance for loans individually evaluated for impairment	172	251	172	251
Ending allowance balance for loans acquired with deteriorated credit quality	0	0	0	0
Ending allowance balance for loans collectively evaluated for impairment	16,485	9,673	16,485	9,673
Loans receivable:
Balance of loans individually evaluated for impairment	14,077	3,200	14,077	3,200
Balance of loans acquired with deteriorated credit quality	4,812	4,328	4,812	4,328
Balance of loans collectively evaluated for impairment	1,795,082	1,535,780	1,795,082	1,535,780
Total period-end balance	1,813,971	1,543,308	1,813,971	1,543,308	$ 1,691,975
Total mortgage loans on real estate
Loans receivable:
Total period-end balance	1,398,542		1,398,542		1,338,743
Total mortgage loans on real estate | Construction & Development
Allowance for loan losses:
Beginning balance	1,554	1,094	1,201	1,038
Provision	495	34	835	89
Charge-offs	0	(51)	0	(51)
Recoveries	9	15	22	16
Ending balance	2,058	1,092	2,058	1,092
Ending allowance balance for loans individually evaluated for impairment	0	66	0	66
Ending allowance balance for loans acquired with deteriorated credit quality	0	0	0	0
Ending allowance balance for loans collectively evaluated for impairment	2,058	1,026	2,058	1,026
Loans receivable:
Balance of loans individually evaluated for impairment	1,082	346	1,082	346
Balance of loans acquired with deteriorated credit quality	0	0	0	0
Balance of loans collectively evaluated for impairment	198,337	166,886	198,337	166,886
Total period-end balance	199,419	167,232	199,419	167,232	197,797
Total mortgage loans on real estate | Farmland
Allowance for loan losses:
Beginning balance	163	101	101	81
Provision	44	(4)	106	16
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	207	97	207	97
Ending allowance balance for loans individually evaluated for impairment	0	0	0	0
Ending allowance balance for loans acquired with deteriorated credit quality	0	0	0	0
Ending allowance balance for loans collectively evaluated for impairment	207	97	207	97
Loans receivable:
Balance of loans individually evaluated for impairment	0	0	0	0
Balance of loans acquired with deteriorated credit quality	2,264	2,264	2,264	2,264
Balance of loans collectively evaluated for impairment	26,581	22,939	26,581	22,939
Total period-end balance	28,845	25,203	28,845	25,203	27,780
Total mortgage loans on real estate | 1-4 Family
Allowance for loan losses:
Beginning balance	2,337	1,511	1,490	1,465
Provision	496	(77)	1,499	(33)
Charge-offs	0	0	(160)	0
Recoveries	5	5	9	7
Ending balance	2,838	1,439	2,838	1,439
Ending allowance balance for loans individually evaluated for impairment	0	0	0	0
Ending allowance balance for loans acquired with deteriorated credit quality	0	0	0	0
Ending allowance balance for loans collectively evaluated for impairment	2,838	1,439	2,838	1,439
Loans receivable:
Balance of loans individually evaluated for impairment	1,237	1,312	1,237	1,312
Balance of loans acquired with deteriorated credit quality	398	472	398	472
Balance of loans collectively evaluated for impairment	324,467	303,728	324,467	303,728
Total period-end balance	326,102	305,512	326,102	305,512	321,489
Total mortgage loans on real estate | Multifamily
Allowance for loan losses:
Beginning balance	351	380	387	331
Provision	135	(9)	99	40
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	486	371	486	371
Ending allowance balance for loans individually evaluated for impairment	0	0	0	0
Ending allowance balance for loans acquired with deteriorated credit quality	0	0	0	0
Ending allowance balance for loans collectively evaluated for impairment	486	371	486	371
Loans receivable:
Balance of loans individually evaluated for impairment	0	0	0	0
Balance of loans acquired with deteriorated credit quality	0	0	0	0
Balance of loans collectively evaluated for impairment	60,617	56,081	60,617	56,081
Total period-end balance	60,617	56,081	60,617	56,081	60,617
Total mortgage loans on real estate | Commercial Real Estate
Allowance for loan losses:
Beginning balance	5,863	4,226	4,424	4,182
Provision	1,311	53	2,750	97
Charge-offs	(76)	0	(76)	0
Recoveries	31	0	31	0
Ending balance	7,129	4,279	7,129	4,279
Ending allowance balance for loans individually evaluated for impairment	0	0	0	0
Ending allowance balance for loans acquired with deteriorated credit quality	0	0	0	0
Ending allowance balance for loans collectively evaluated for impairment	7,129	4,279	7,129	4,279
Loans receivable:
Balance of loans individually evaluated for impairment	4,220	878	4,220	878
Balance of loans acquired with deteriorated credit quality	1,803	1,550	1,803	1,550
Balance of loans collectively evaluated for impairment	777,536	675,128	777,536	675,128
Total period-end balance	783,559	677,556	783,559	677,556	731,060
Commercial & Industrial
Allowance for loan losses:
Beginning balance	3,287	1,673	2,609	1,641
Provision	46	424	729	445
Charge-offs	0	0	(7)	0
Recoveries	3	1	5	12
Ending balance	3,336	2,098	3,336	2,098
Ending allowance balance for loans individually evaluated for impairment	13	0	13	0
Ending allowance balance for loans acquired with deteriorated credit quality	0	0	0	0
Ending allowance balance for loans collectively evaluated for impairment	3,323	2,098	3,323	2,098
Loans receivable:
Balance of loans individually evaluated for impairment	7,051	6	7,051	6
Balance of loans acquired with deteriorated credit quality	306	0	306	0
Balance of loans collectively evaluated for impairment	382,728	276,896	382,728	276,896
Total period-end balance	390,085	276,902	390,085	276,902	323,786
Consumer
Allowance for loan losses:
Beginning balance	678	657	488	716
Provision	(27)	(52)	242	(20)
Charge-offs	(75)	(69)	(170)	(173)
Recoveries	27	12	43	25
Ending balance	603	548	603	548
Ending allowance balance for loans individually evaluated for impairment	159	185	159	185
Ending allowance balance for loans acquired with deteriorated credit quality	0	0	0	0
Ending allowance balance for loans collectively evaluated for impairment	444	363	444	363
Loans receivable:
Balance of loans individually evaluated for impairment	487	658	487	658
Balance of loans acquired with deteriorated credit quality	41	42	41	42
Balance of loans collectively evaluated for impairment	24,816	34,122	24,816	34,122
Total period-end balance	$ 25,344	$ 34,822	$ 25,344	$ 34,822	$ 29,446

LOANS AND ALLOWANCE FOR LOAN _9

LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of Recorded Investment and Unpaid Principal Balance for Impairment (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Recorded Investment
With no related allowance recorded	$ 13,779	$ 2,237
With related allowance recorded	298	310
Total loans	14,077	2,547
Unpaid Principal Balance
With no related allowance recorded	13,884	2,365
With related allowance recorded	347	347
Total loans	14,231	2,712
Related Allowance	172	141
Total mortgage loans on real estate
Recorded Investment
With no related allowance recorded	6,539	1,956
Total loans	6,539	1,956
Unpaid Principal Balance
With no related allowance recorded	6,622	2,064
Total loans	6,622	2,064
Related Allowance	0	0
Total mortgage loans on real estate | Construction and development
Recorded Investment
With no related allowance recorded	1,082	247
Total loans	1,082	247
Unpaid Principal Balance
With no related allowance recorded	1,155	269
Total loans	1,155	269
Related Allowance	0	0
Total mortgage loans on real estate | 1-4 Family
Recorded Investment
With no related allowance recorded	1,237	1,662
Total loans	1,237	1,662
Unpaid Principal Balance
With no related allowance recorded	1,242	1,745
Total loans	1,242	1,745
Related Allowance	0	0
Total mortgage loans on real estate | Commercial real estate
Recorded Investment
With no related allowance recorded	4,220	47
Total loans	4,220	47
Unpaid Principal Balance
With no related allowance recorded	4,225	50
Total loans	4,225	50
Related Allowance	0	0
Commercial and industrial
Recorded Investment
With no related allowance recorded	7,039	93
With related allowance recorded	12
Total loans	7,051	93
Unpaid Principal Balance
With no related allowance recorded	7,044	96
With related allowance recorded	13
Total loans	7,057	96
Related Allowance	13	0
Consumer
Recorded Investment
With no related allowance recorded	201	188
With related allowance recorded	286	310
Total loans	487	498
Unpaid Principal Balance
With no related allowance recorded	218	205
With related allowance recorded	334	347
Total loans	552	552
Related Allowance	$ 159	$ 141

LOANS AND ALLOWANCE FOR LOAN_10

LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Average Recorded Investment And Interest Income Recognized For TDRs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Average Recorded Investment
With no related allowance recorded	$ 8,205	$ 2,975	$ 5,423	$ 2,944
With related allowance recorded	301	593	304	613
Total loans	8,506	3,568	5,727	3,557
Interest Income Recognized
With no related allowance recorded	74	12	78	29
With related allowance recorded	0	0	1	0
Total loans	74	12	79	29
Total mortgage loans on real estate
Average Recorded Investment
With no related allowance recorded	5,613	2,780	3,971	2,672
With related allowance recorded	0	114	0	124
Total loans	5,613	2,894	3,971	2,796
Interest Income Recognized
With no related allowance recorded	56	12	60	29
With related allowance recorded	0	0	0	0
Total loans	56	12	60	29
Total mortgage loans on real estate | Construction and development
Average Recorded Investment
With no related allowance recorded	1,089	265	808	264
With related allowance recorded	0	114	0	124
Total loans	1,089	379	808	388
Interest Income Recognized
With no related allowance recorded	3	3	5	8
With related allowance recorded	0	0	0	0
Total loans	3	3	5	8
Total mortgage loans on real estate | 1-4 Family
Average Recorded Investment
With no related allowance recorded	1,262	1,281	1,508	1,257
Total loans	1,262	1,281	1,508	1,257
Interest Income Recognized
With no related allowance recorded	7	7	9	17
Total loans	7	7	9	17
Total mortgage loans on real estate | Multifamily
Average Recorded Investment
With no related allowance recorded	0	36	0	72
Total loans	0	36	0	72
Interest Income Recognized
With no related allowance recorded	0	0	0	0
Total loans	0	0	0	0
Total mortgage loans on real estate | Commercial real estate
Average Recorded Investment
With no related allowance recorded	3,262	1,198	1,655	1,079
Total loans	3,262	1,198	1,655	1,079
Interest Income Recognized
With no related allowance recorded	46	2	46	4
Total loans	46	2	46	4
Commercial and industrial
Average Recorded Investment
With no related allowance recorded	2,380	7	1,244	14
With related allowance recorded	12	0	12	0
Total loans	2,392	7	1,256	14
Interest Income Recognized
With no related allowance recorded	18	0	18	0
With related allowance recorded	0	0	0	0
Total loans	18	0	18	0
Consumer
Average Recorded Investment
With no related allowance recorded	212	188	208	258
With related allowance recorded	289	479	292	489
Total loans	501	667	500	747
Interest Income Recognized
With no related allowance recorded	0	0	0	0
With related allowance recorded	0	0	1	0
Total loans	$ 0	$ 0	$ 1	$ 0

LOANS AND ALLOWANCE FOR LOAN_11

LOANS AND ALLOWANCE FOR LOAN LOSSES - Troubled Debt Restructurings Narrative (Details) $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2020USD ($)security_loancontract	Jun. 30, 2019contract	Dec. 31, 2019USD ($)security_loancontract
Financing Receivable Modifications [Line Items]
Number of contracts	24		18
Recorded investment or loans under troubled debt restructurings | $	$ 5.3		$ 1.5
Number of contracts in nonaccrual loans | contract	2		2
Number of contracts in default | contract	0	0
Total mortgage loans on real estate | Construction and development
Financing Receivable Modifications [Line Items]
Number of contracts in nonaccrual loans | contract	1		1
Nonaccrual loans | $	$ 0.3		$ 0.3
Total mortgage loans on real estate | 1-4 Family
Financing Receivable Modifications [Line Items]
Number of contracts in nonaccrual loans | contract	1		1
Nonaccrual loans | $	$ 0.2		$ 0.2
Troubled Debt Restructuring, Adjustments to Maturity
Financing Receivable Modifications [Line Items]
Number of contracts	13
Troubled Debt Restructuring, Reduction in Interest Rate
Financing Receivable Modifications [Line Items]
Number of contracts	7
Troubled Debt Restructuring, Principal Payment Forbearance Paying Interest
Financing Receivable Modifications [Line Items]
Number of contracts	2
Troubled Debt Restructuring, Reduction in Principal Payment
Financing Receivable Modifications [Line Items]
Number of contracts	1
Nonaccrual
Financing Receivable Modifications [Line Items]
Number of contracts	1

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning of Period	$ 233,272	$ 203,014	$ 241,976	$ 182,262
Net Change	564	2,246	(1,521)	4,289
End of Period	236,706	205,499	236,706	205,499
Unrealized gain (loss), available for sale, net
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning of Period	4,038	565	3,476	(1,647)
Net Change, before reclassifications	2,883	2,672	3,445	4,884
End of Period	6,921	3,237	6,921	3,237
Reclassification of realized gain, net
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning of Period	(2,267)	(1,927)	(2,131)	(1,925)
Net Change, reclassification	(931)	(179)	(1,067)	(181)
End of Period	(3,198)	(2,106)	(3,198)	(2,106)
Unrealized gain (loss), transfer from available for sale to held to maturity, net
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning of Period	4	5	4	5
Net Change	(1)	0	(1)	0
End of Period	3	5	3	5
Change in fair value of interest rate swap designated as a cash flow hedge, net
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning of Period	(1,969)	324	542	491
Net Change	(1,387)	(247)	(3,898)	(414)
End of Period	(3,356)	77	(3,356)	77
Accumulated other comprehensive income (loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning of Period	(194)	(1,033)	1,891	(3,076)
Net Change	564	2,246	(1,521)	4,289
End of Period	$ 370	$ 1,213	$ 370	$ 1,213

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Stock options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock option expense	$ 83	$ 86	$ 156	$ 146
Unrecognized compensation cost related to stock options	700		$ 700
Weighted-average period related to stock compensation			3 years 7 months 6 days
Restricted stock awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average period related to stock compensation			3 years 7 months 6 days
Share-based compensation expense	400	$ 300	$ 700	$ 500
Unrecognized compensation cost related to time vested restricted stock award	$ 4,100		$ 4,100
Restricted stock awards | Employees
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Requisite service period			5 years
Restricted stock awards | Nonemployee directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Requisite service period			2 years
Restricted stock awards | Non-employee directors and certain officers | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unearned compensation related to awards amortized to compensation expense, vesting period			2 years
Restricted stock awards | Non-employee directors and certain officers | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unearned compensation related to awards amortized to compensation expense, vesting period			5 years
Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Reserve of common stock for grant, award or issuance to directors and employees (in shares)	600,000		600,000
Shares available for future grants (in shares)	243,712		243,712

STOCK-BASED COMPENSATION - Sche

STOCK-BASED COMPENSATION - Schedule of Assumptions Used for Option Awards Granted (Details)	6 Months Ended
	Jun. 30, 2020$ / shares
Share-based Payment Arrangement [Abstract]
Expected dividends	1.12%
Expected volatility	26.39%
Risk-free interest rate	0.99%
Expected term (in years)	6 years 6 months
Weighted-average grant date fair value (in dollars per share)	$ 5.17

STOCK-BASED COMPENSATION - Sc_2

STOCK-BASED COMPENSATION - Schedule of Stock Options Activity (Details) - Stock options - $ / shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Number of Options
Outstanding at beginning of period (in shares)	357,214	340,646
Granted (in shares)	58,993	36,984
Forfeited (in shares)	(4,585)	0
Exercised (in shares)	(3,334)	(1,916)
Outstanding at end of period (in shares)	408,288	375,714
Exercisable at end of period (in shares)	249,435	196,111
Weighted Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 16.96	$ 15.98
Granted (in dollars per share)	21.36	24.40
Forfeited (in dollars per share)	14	0
Exercised (in dollars per share)	14	14.60
Outstanding at end of period (in dollars per share)	17.66	16.82
Exercisable at end of period (in dollars per share)	$ 15.85	$ 15.27

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted Stock Award Activity (Details) - Restricted stock awards - $ / shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Shares
Balance at beginning of period (in shares)	168,216	135,848
Granted (in shares)	100,850	76,809
Forfeited (in shares)	(9,484)	(5,828)
Earned and issued (in shares)	(52,381)	(39,861)
Balance at end of period (in shares)	207,201	166,968
Weighted Average Grant Date Fair Value
Balance at beginning of period (in dollars per share)	$ 22.43	$ 20.47
Granted (in dollars per share)	21.56	24.45
Forfeited (in dollars per share)	21.92	23.70
Earned and issued (in dollars per share)	21.39	19.84
Balance at end of period (in dollars per share)	$ 22.29	$ 22.33

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Derivatives Fair Value [Line Items]
Maximum length of time hedged cash flow hedge period			10 years 1 month 6 days
Foreign Exchange Forward | Designated As Hedging Instrument | Cash Flow Hedging
Derivatives Fair Value [Line Items]
Notional amount	$ 80,000,000		$ 80,000,000
Interest Rate Swap | Designated As Hedging Instrument | Cash Flow Hedging
Derivatives Fair Value [Line Items]
Notional amount	110,000,000		110,000,000
Loss on change in fair value of interest rate swaps	1,400,000	$ 200,000	3,900,000	$ 400,000
Derivative instrument Loss included in accumulated other comprehensive income to be reclassified to earnings			3,400,000
Interest Rate Swap | Designated As Hedging Instrument | Cash Flow Hedging | Accrued Taxes and Other Liabilities
Derivatives Fair Value [Line Items]
Fair value of derivative asset	$ 4,200,000		$ 4,200,000
Interest Rate Swap | Designated As Hedging Instrument | Cash Flow Hedging | Other Assets
Derivatives Fair Value [Line Items]
Fair value of derivative asset					$ 700,000

FAIR VALUES OF FINANCIAL INST_3

FAIR VALUES OF FINANCIAL INSTRUMENTS - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Assets:
Investment securities	$ 246,886	$ 259,805
Obligations of U.S. government agencies and corporations
Assets:
Investment securities	42,001	33,651
Obligations of state and political subdivisions
Assets:
Investment securities	24,488	33,449
Corporate bonds
Assets:
Investment securities	24,652	19,163
Residential mortgage-backed securities
Assets:
Investment securities	89,636	101,946
Commercial mortgage-backed securities
Assets:
Investment securities	66,109	71,596
Fair Value, Measurements, Recurring
Assets:
Derivative financial instruments		687
Total assets	249,404	262,589
Liabilities:
Derivative financial instruments	4,247
Fair Value, Measurements, Recurring | Obligations of U.S. government agencies and corporations
Assets:
Investment securities	42,001	33,651
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions
Assets:
Investment securities	24,488	33,449
Fair Value, Measurements, Recurring | Corporate bonds
Assets:
Investment securities	24,652	19,163
Fair Value, Measurements, Recurring | Residential mortgage-backed securities
Assets:
Investment securities	89,636	101,946
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities
Assets:
Investment securities	66,109	71,596
Fair Value, Measurements, Recurring | Equity securities
Assets:
Equity securities	2,518	2,097
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Derivative financial instruments		0
Total assets	2,518	2,097
Liabilities:
Derivative financial instruments	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of U.S. government agencies and corporations
Assets:
Investment securities	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of state and political subdivisions
Assets:
Investment securities	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds
Assets:
Investment securities	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential mortgage-backed securities
Assets:
Investment securities	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial mortgage-backed securities
Assets:
Investment securities	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities
Assets:
Equity securities	2,518	2,097
Fair Value, Measurements, Recurring | Significant Other Observable  Inputs (Level 2)
Assets:
Derivative financial instruments		687
Total assets	228,590	241,117
Liabilities:
Derivative financial instruments	4,247
Fair Value, Measurements, Recurring | Significant Other Observable  Inputs (Level 2) | Obligations of U.S. government agencies and corporations
Assets:
Investment securities	42,001	33,651
Fair Value, Measurements, Recurring | Significant Other Observable  Inputs (Level 2) | Obligations of state and political subdivisions
Assets:
Investment securities	6,192	14,074
Fair Value, Measurements, Recurring | Significant Other Observable  Inputs (Level 2) | Corporate bonds
Assets:
Investment securities	24,652	19,163
Fair Value, Measurements, Recurring | Significant Other Observable  Inputs (Level 2) | Residential mortgage-backed securities
Assets:
Investment securities	89,636	101,946
Fair Value, Measurements, Recurring | Significant Other Observable  Inputs (Level 2) | Commercial mortgage-backed securities
Assets:
Investment securities	66,109	71,596
Fair Value, Measurements, Recurring | Significant Other Observable  Inputs (Level 2) | Equity securities
Assets:
Equity securities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3)
Assets:
Derivative financial instruments		0
Total assets	18,296	19,375
Liabilities:
Derivative financial instruments	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Obligations of U.S. government agencies and corporations
Assets:
Investment securities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Obligations of state and political subdivisions
Assets:
Investment securities	18,296	19,375
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate bonds
Assets:
Investment securities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Residential mortgage-backed securities
Assets:
Investment securities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Commercial mortgage-backed securities
Assets:
Investment securities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity securities
Assets:
Equity securities	$ 0	$ 0

FAIR VALUES OF FINANCIAL INST_4

FAIR VALUES OF FINANCIAL INSTRUMENTS - Summary of Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period		$ 20,143
Realized gains (losses) included in earnings		0
Unrealized losses included in other comprehensive income (loss)		493
Purchases		0
Sales		0
Maturities, prepayments, and calls		(23)
Transfers into level 3		0
Transfers out of level 3		0
Balance at end of period		20,613
Obligations of state and political subdivisions
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period	$ 19,375	18,808
Realized gains (losses) included in earnings	0	0
Unrealized losses included in other comprehensive income (loss)	(1,079)	506
Purchases	0	0
Sales	0	0
Maturities, prepayments, and calls	0	(23)
Transfers into level 3	0	0
Transfers out of level 3	0	0
Balance at end of period	$ 18,296	19,291
Corporate bonds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period		1,335
Realized gains (losses) included in earnings		0
Unrealized losses included in other comprehensive income (loss)		(13)
Purchases		0
Sales		0
Maturities, prepayments, and calls		0
Transfers into level 3		0
Transfers out of level 3		0
Balance at end of period		$ 1,322

FAIR VALUES OF FINANCIAL INST_5

FAIR VALUES OF FINANCIAL INSTRUMENTS - Quantitative Information About Significant Unobservable Inputs Used In Fair Value Measurements (Details) $ in Thousands	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	$ 246,886	$ 259,805
Obligations of state and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	24,488	33,449
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	24,488	33,449
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | Discounted cash flows, Underlying collateral value | Bond Appraisal Adjustment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	$ 18,296	$ 18,296
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | Discounted cash flows, Underlying collateral value | Bond Appraisal Adjustment | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Obligations of State and Political Subdivisions	0	0
Fair Value, Measurements, Recurring | Obligations of state and political subdivisions | Discounted cash flows, Underlying collateral value | Bond Appraisal Adjustment | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Obligations of State and Political Subdivisions	0.07	0.07
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 91	$ 55
Fair Value, Measurements, Nonrecurring | Discounted cash flows, Underlying collateral value | Collateral discounts and estimated costs to sell | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment loans, discount rate	0	0
Fair Value, Measurements, Nonrecurring | Discounted cash flows, Underlying collateral value | Collateral discounts and estimated costs to sell | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment loans, discount rate	1	1
Fair Value, Measurements, Nonrecurring | Discounted cash flows, Underlying collateral value | Collateral discounts and estimated costs to sell | Weighted Average Discount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment loans, discount rate	0.35	0.31

FAIR VALUES OF FINANCIAL INST_6

FAIR VALUES OF FINANCIAL INSTRUMENTS - Summary of Estimated Fair Values of Company's Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Financial assets:
Federal funds sold		$ 387
Investment securities	$ 246,886	259,805
Financial liabilities:
Junior subordinated debt	5,923	5,897
Carrying Amount
Financial assets:
Cash and due from banks	130,964	44,308
Investment securities	260,939	274,214
Equity securities	19,398	19,315
Loans, net of allowance	1,797,314	1,681,275
Derivative financial instruments		687
Financial liabilities:
Deposits, noninterest-bearing	469,095	351,905
Deposits, interest-bearing	1,420,493	1,355,801
FHLB short-term advances and repurchase agreements	84,908	56,095
FHLB long-term advances	78,500	78,500
Junior subordinated debt	5,923	5,897
Subordinated debt	43,600	43,600
Derivative financial instruments	4,247
Estimated Fair Value
Financial assets:
Cash and due from banks	130,964	44,308
Federal funds sold		387
Investment securities	261,151	274,285
Equity securities	19,398	19,316
Loans, net of allowance	1,814,786	1,680,364
Derivative financial instruments		687
Financial liabilities:
Deposits, noninterest-bearing	469,095	351,905
Deposits, interest-bearing	1,485,774	1,368,194
FHLB short-term advances and repurchase agreements	84,908	56,095
FHLB long-term advances	77,870	76,635
Junior subordinated debt	3,863	7,747
Subordinated debt	42,480	56,399
Derivative financial instruments	4,247
Level 1 | Estimated Fair Value
Financial assets:
Cash and due from banks	130,964	44,308
Federal funds sold		387
Investment securities	0	0
Equity securities	2,518	2,097
Loans, net of allowance	0	0
Derivative financial instruments		0
Financial liabilities:
Deposits, noninterest-bearing	0	0
Deposits, interest-bearing	0	0
FHLB short-term advances and repurchase agreements	0	0
FHLB long-term advances	0	0
Junior subordinated debt	0	0
Subordinated debt	0	0
Derivative financial instruments	0
Level 2 | Estimated Fair Value
Financial assets:
Cash and due from banks	0	0
Federal funds sold		0
Investment securities	233,593	245,410
Equity securities	16,880	17,219
Loans, net of allowance	0	0
Derivative financial instruments		687
Financial liabilities:
Deposits, noninterest-bearing	469,095	351,905
Deposits, interest-bearing	0	0
FHLB short-term advances and repurchase agreements	84,908	56,095
FHLB long-term advances	0	0
Junior subordinated debt	0	0
Subordinated debt	42,480	56,399
Derivative financial instruments	4,247
Level 3 | Estimated Fair Value
Financial assets:
Cash and due from banks	0	0
Federal funds sold		0
Investment securities	27,558	28,875
Equity securities	0	0
Loans, net of allowance	1,814,786	1,680,364
Derivative financial instruments		0
Financial liabilities:
Deposits, noninterest-bearing	0	0
Deposits, interest-bearing	1,485,774	1,368,194
FHLB short-term advances and repurchase agreements	0	0
FHLB long-term advances	77,870	76,635
Junior subordinated debt	3,863	7,747
Subordinated debt	0	$ 0
Derivative financial instruments	$ 0

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income tax expense	$ 1,016	$ 1,216	$ 1,165	$ 2,168
Effective tax rate	19.20%	19.80%	19.30%	19.70%

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Unfunded loan commitments	$ 300	$ 100
Unfunded commitments in SBIC qualified funds	$ 38

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Summary of Commitments to Extend Credit (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Standby letters of credit
Loss Contingencies [Line Items]
Commitments to extend credit	$ 13,245	$ 11,475
Loan commitments
Loss Contingencies [Line Items]
Commitments to extend credit	$ 311,744	$ 242,180

LEASES - Narrative (Details)

LEASES - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)	Feb. 21, 2020branch_location	Dec. 31, 2019	Mar. 01, 2019branch_location
Lessee, Lease, Description [Line Items]
ROU assets | $	$ 4,100
Lease liabilities | $	$ 4,200
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentNet		us-gaap:PropertyPlantAndEquipmentNet
Operating Lease, Liability, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesCurrentAndNoncurrent		us-gaap:AccruedLiabilitiesCurrentAndNoncurrent
Rental income | $	$ 30
Minimum
Lessee, Lease, Description [Line Items]
Remaining terms	4 years
Maximum
Lessee, Lease, Description [Line Items]
Remaining terms	11 years
Mainland
Lessee, Lease, Description [Line Items]
Number of branches leased | branch_location				2
Number of branch locations acquired | branch_location				3
Plains Capital Bank
Lessee, Lease, Description [Line Items]
Number of branch locations acquired | branch_location		2

LEASES - Quantitative Informati

LEASES - Quantitative Information Regarding Operating Leases (Details)	6 Months Ended
	Jun. 30, 2020USD ($)
Leases [Abstract]
Total operating lease cost	$ 293,000
Weighted-average remaining lease term (in years)	9 years
Weighted-average discount rate	2.80%

LEASES - Future Minimum Lease P

LEASES - Future Minimum Lease Payments Due Under Non-Cancelable Operating Leases (Details) $ in Thousands	Jun. 30, 2020USD ($)
Leases [Abstract]
2020	$ 289
2021	593
2022	598
2023	595
2024	515
Thereafter	2,168
Total	$ 4,758

TRANSACTIONS WITH RELATED PAR_2

TRANSACTIONS WITH RELATED PARTIES (Details) $ in Millions	May 29, 2020USD ($)
CPI LLC
Related Party Transaction [Line Items]
Transaction with related parties	$ 1.8