HBT Financial (HBT) 10-Q 7 Aug 20 2020 Q2 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - shares	6 Months Ended
	Jun. 30, 2020	Jul. 31, 2020
DOCUMENT AND ENTITY INFORMATION
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Entity Registrant Name	HBT Financial, Inc.
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		27,457,306
Entity Central Index Key	0000775215
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
ASSETS
Cash and due from banks	$ 21,789	$ 22,112
Interest-bearing deposits with banks	292,576	261,859
Cash and cash equivalents	314,365	283,971
Interest-bearing time deposits with banks		248
Debt securities available-for-sale, at fair value	701,353	592,404
Debt securities held-to-maturity (fair value of $78,317 in 2020 and $90,529 in 2019)	73,823	88,477
Equity securities	4,815	4,389
Restricted stock, at cost	2,498	2,425
Loans held for sale	25,934	4,531
Loans, net of allowance for loan losses of $29,723 in 2020 and $22,299 in 2019	2,246,072	2,141,527
Bank premises and equipment, net	53,883	53,987
Bank premises held for sale	121	121
Foreclosed assets	4,450	5,099
Goodwill	23,620	23,620
Core deposit intangible assets, net	3,408	4,030
Mortgage servicing rights, at fair value	5,839	8,518
Investments in unconsolidated subsidiaries	1,165	1,165
Accrued interest receivable	12,661	13,951
Other assets	27,405	16,640
Total assets	3,501,412	3,245,103
Deposits:
Noninterest-bearing	856,030	689,116
Interest-bearing	2,159,083	2,087,739
Total deposits	3,015,113	2,776,855
Securities sold under agreements to repurchase	51,354	44,433
Subordinated debentures	37,616	37,583
Other liabilities	49,489	53,314
Total liabilities	3,153,572	2,912,185
COMMITMENTS AND CONTINGENCIES (Notes 7 and 17)
Stockholders' Equity
Preferred stock, $0.01 par value, 25,000,000 shares authorized, none issued or outstanding
Common stock, $0.01 par value; 125,000,000 shares authorized; 27,457,306 shares issued and outstanding	275	275
Surplus	190,687	190,524
Retained earnings	139,667	134,287
Accumulated other comprehensive income	17,211	7,832
Total stockholders’ equity	347,840	332,918
Total liabilities and stockholders’ equity	$ 3,501,412	$ 3,245,103

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Stockholders' Equity
Debt securities held-to-maturity	$ 78,317	$ 90,529
Allowance for loan losses	$ 29,723	$ 22,299
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	27,457,306	27,457,306
Common stock, shares outstanding	27,457,306	27,457,306

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
Loans, including fees:
Taxable	$ 25,337	$ 29,886	$ 52,278	$ 59,949
Federally tax exempt	532	736	1,206	1,446
Securities:
Taxable	3,172	3,801	6,506	7,723
Federally tax exempt	1,227	1,512	2,255	3,064
Interest-bearing deposits in bank	79	599	808	1,286
Other interest and dividend income	14	16	28	31
Total interest and dividend income	30,361	36,550	63,081	73,499
INTEREST EXPENSE
Deposits	1,042	2,111	2,637	4,094
Securities sold under agreements to repurchase	11	17	31	31
Borrowings	1	4	1	7
Subordinated debentures	399	487	842	984
Total interest expense	1,453	2,619	3,511	5,116
Net interest income	28,908	33,931	59,570	68,383
PROVISION FOR LOAN LOSSES	3,573	1,806	7,928	2,582
Net interest income after provision for loan losses	25,335	32,125	51,642	65,801
NONINTEREST INCOME
Mortgage servicing	727	818	1,451	1,547
Mortgage servicing rights fair value adjustment	(508)	(1,120)	(2,679)	(2,122)
Gains on sale of mortgage loans	2,135	660	2,671	1,185
Gains (losses) on securities	57	36	5	115
Gains (losses) on foreclosed assets	58	169	93	152
Gains (losses) on other assets	(69)	368	(72)	1,273
Other noninterest income	1,022	957	1,765	1,754
Total noninterest income	8,060	7,346	13,312	14,833
NONINTEREST EXPENSE
Salaries	12,674	11,597	25,428	24,119
Employee benefits	2,455	4,723	4,889	5,967
Occupancy of bank premises	1,642	1,638	3,470	3,475
Furniture and equipment	609	716	1,212	1,505
Data processing	1,672	1,390	3,258	2,552
Marketing and customer relations	817	1,103	1,861	2,036
Amortization of intangible assets	305	376	622	752
FDIC insurance	218	208	254	427
Loan collection and servicing	494	612	842	1,354
Foreclosed assets	88	165	177	329
Other noninterest expense	2,525	2,033	4,793	4,257
Total noninterest expense	23,499	24,561	46,806	46,773
INCOME BEFORE INCOME TAX EXPENSE	9,896	14,910	18,148	33,861
INCOME TAX EXPENSE	2,477	305	4,508	520
NET INCOME	$ 7,419	$ 14,605	$ 13,640	$ 33,341
EARNINGS PER SHARE - BASIC	$ 0.27	$ 0.81	$ 0.50	$ 1.85
EARNINGS PER SHARE - DILUTED	$ 0.27	$ 0.81	$ 0.50	$ 1.85
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING	27,457,306	18,027,512	27,457,306	18,027,512
Card income
NONINTEREST INCOME
Revenue	$ 1,998	$ 1,996	$ 3,790	$ 3,828
Service charges on deposit accounts
NONINTEREST INCOME
Revenue	1,133	1,931	2,967	3,694
Wealth management fees
NONINTEREST INCOME
Revenue	$ 1,507	1,493	$ 3,321	3,240
Title insurance activity
NONINTEREST INCOME
Revenue		$ 38		$ 167

CONSOLIDATED STATEMENTS OF IN_2

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
UNAUDITED PRO FORMA C CORP EQUIVALENT INFORMATION (Note 1)
Historical income before income tax expense	$ 14,910	$ 33,861
Pro forma C Corp equivalent income tax expense	305	520
NET INCOME	$ 14,605	$ 33,341
PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - BASIC	$ 0.81	$ 1.85
PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - DILUTED	$ 0.81	$ 1.85
Pro Forma
UNAUDITED PRO FORMA C CORP EQUIVALENT INFORMATION (Note 1)
Historical income before income tax expense	$ 14,910	$ 33,861
Pro forma C Corp equivalent income tax expense	3,784	8,699
NET INCOME	$ 11,126	$ 25,162
PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - BASIC	$ 0.62	$ 1.40
PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - DILUTED	$ 0.62	$ 1.40

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
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
NET INCOME	$ 7,419	$ 14,605	$ 13,640	$ 33,341
OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized gains (losses) on debt securities available-for-sale	6,590	6,968	14,192	12,624
Reclassification adjustment for accretion of net unrealized gain on debt securities transferred to held-to-maturity	6	(77)	(3)	(159)
Unrealized losses on derivative instruments	(133)	(445)	(1,103)	(689)
Reclassification adjustment for net settlements on derivative instruments	39	(22)	41	(52)
Total other comprehensive income (loss), before tax	6,502	6,424	13,127	11,724
Income tax expense	1,860		3,748
Total other comprehensive income (loss)	4,642	6,424	9,379	11,724
TOTAL COMPREHENSIVE INCOME	$ 12,061	$ 21,029	$ 23,019	$ 45,065

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	VotingCommon Stock	Series A NonvotingCommon Stock	Surplus	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Total
Balance at Dec. 31, 2018	$ 3	$ 178	$ 32,288	$ 315,234	$ (4,288)	$ (3,019)	$ 340,396
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				33,341			33,341
Other comprehensive income					11,724		11,724
Cash dividends				(45,591)			(45,591)
Balance at Jun. 30, 2019	3	178	32,288	302,984	7,436	(3,019)	339,870
Balance at Mar. 31, 2019	3	178	32,288	298,131	1,012	(3,019)	328,593
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				14,605			14,605
Other comprehensive income					6,424		6,424
Cash dividends				(9,752)			(9,752)
Balance at Jun. 30, 2019	3	$ 178	32,288	302,984	7,436	$ (3,019)	339,870
Balance at Dec. 31, 2019	275		190,524	134,287	7,832		332,918
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				13,640			13,640
Other comprehensive income					9,379		9,379
Stock-based compensation			163				163
Cash dividends				(8,260)			(8,260)
Balance at Jun. 30, 2020	275		190,687	139,667	17,211		347,840
Balance at Mar. 31, 2020	275		190,591	136,378	12,569		339,813
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income				7,419			7,419
Other comprehensive income					4,642		4,642
Stock-based compensation			96				96
Cash dividends				(4,130)			(4,130)
Balance at Jun. 30, 2020	$ 275		$ 190,687	$ 139,667	$ 17,211		$ 347,840

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
Stock Transactions, Parenthetical Disclosures [Abstract]
Cash dividends	$ 0.15	$ 0.54	$ 0.30	$ 2.53

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	$ 13,640	$ 33,341
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	1,406	1,381
Provision for loan losses	7,928	2,582
Net amortization of debt securities	1,825	1,868
Amortization of unrealized gain on dedesignated cash flow hedge	(64)	(20)
Deferred income tax benefit	185
Stock-based compensation	163
Net accretion of discount and deferred loan fees on loans	(1,313)	(2,450)
Net unrealized loss (gain) on equity securities	(5)	(115)
Net loss (gain) on sales of bank premises and equipment	3	(30)
Net gain on sales of bank premises held for sale		(448)
Impairment losses on bank premises held for sale		9
Net gain on sales of foreclosed assets	(144)	(105)
Write-down of foreclosed assets	58	389
Amortization of intangibles	622	752
Decrease in mortgage servicing rights	2,679	2,122
Amortization of subordinated debt purchase accounting adjustment	33	33
Mortgage loans originated for sale	(152,706)	(54,948)
Proceeds from sale of mortgage loans	133,974	53,630
Net gain on sale of mortgage loans	(2,671)	(1,185)
Gain on sale of First Community Title Services, Inc.		(498)
Decrease in accrued interest receivable	1,290	691
Increase in other assets	(375)	(541)
(Decrease) increase in other liabilities	(19,146)	2,490
Net cash (used in) provided by operating activities	(12,618)	38,948
CASH FLOWS FROM INVESTING ACTIVITIES
Net change in interest-bearing time deposits with banks	248
Proceeds from paydowns, maturities, and calls of debt securities	97,066	91,196
Purchase of securities	(179,418)	(40,424)
Net increase in loans	(111,420)	(58,339)
Purchase of restricted stock	(73)
Proceeds from redemption of restricted stock		294
Purchases of bank premises and equipment	(1,305)	(784)
Proceeds from sales of bank premises and equipment		176
Proceeds from sales of bank premises held for sale		1,039
Proceeds from sales of foreclosed assets	1,001	969
Capital improvements to foreclosed assets	(6)
Cash received from sale of First Community Title Services, Inc.		114
Net cash used in investing activities	(193,907)	(5,759)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits	238,258	(22,202)
Net increase (decrease) in repurchase agreements	6,921	(10,549)
Cash dividends paid	(8,260)	(45,591)
Net cash provided by (used in) financing activities	236,919	(78,342)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	30,394	(45,153)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	283,971	186,879
CASH AND CASH EQUIVALENTS AT END OF PERIOD	314,365	141,726
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	3,822	4,976
Cash paid for income taxes	2,935	880
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING ACTIVITIES
Transfers of loans to foreclosed assets	327	1,761
Sales of foreclosed assets through loan origination	$ 67	$ 360

ACCOUNTING POLICIES

ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2020
ACCOUNTING POLICIES
ACCOUNTING POLICIES	NOTE 1 – ACCOUNTING POLICIES Basis of Presentation HBT Financial, Inc. (the Company) is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company (Heartland Bank) and State Bank of Lincoln. Heartland Bank and State Bank of Lincoln are collectively referred to as “the Banks”. The Banks provide a comprehensive suite of business, commercial, wealth management and retail banking products and services to individuals, businesses, and municipal entities throughout Central and Northeastern Illinois. The unaudited consolidated financial statements, including the notes thereto, have been prepared in accordance with generally accepted accounting principles (GAAP) interim reporting requirements. Certain information in footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission. These interim unaudited consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 27, 2020. The unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. The Company qualifies as an "emerging growth company" as defined by the Jumpstart Our Business Startups Act (JOBS Act). The JOBS Act permits emerging growth companies an extended transition period for complying with new or revised accounting standards affecting public companies. The Company has elected to use the extended transition period until the Company is no longer an emerging growth company or until the Company chooses to affirmatively and irrevocably opt out of the extended transition period. As a result, the Company’s financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public companies. Use of Estimates The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses and income taxes. Income Taxes Through October 10, 2019, the Company, with the consent of its then current stockholders, elected to be taxed under sections of federal and state income tax law as an "S Corporation" which provides that, in lieu of Company income taxes, except for state replacement taxes, the stockholders separately account for their pro rata shares of the Company’s items of income, deductions, losses and credits. As a result of this election, no income taxes, other than state replacement taxes, have been recognized in the accompanying consolidated financial statements. No provision has been made for any amounts which were advanced or paid as dividends to the stockholders to assist them in paying their personal taxes on the income from the Company. Effective October 11, 2019, the Company voluntarily revoked its S Corporation status and became a taxable entity (C Corporation). As such, any periods prior to October 11, 2019 only reflect an effective state replacement tax rate. The Company files consolidated federal and state income tax returns. The Company is no longer subject to federal income tax examinations for years prior to 2017 or state income tax examinations for years prior to 2016. Unaudited Pro Forma Income Statement Information The unaudited pro forma C Corp equivalent income tax expense information gives effect to the income tax expense had the Company been a C Corporation during the three and six months ended June 30, 2019. The unaudited pro forma C Corp equivalent net income information, therefore, includes an adjustment for income tax expense as if the Company had been a C Corporation during the three and six months ended June 30, 2019. The unaudited pro forma basic and diluted earnings per share information is computed using the unaudited pro forma C Corp equivalent net income and weighted average shares of common stock outstanding. There were no dilutive instruments outstanding during 2019, therefore, the unaudited pro forma C Corp equivalent basic and diluted earnings per share amounts are the same. Segment Reporting The Company’s operations consist of one reportable segment called community banking. While the Company’s management monitors both bank subsidiaries’ operations and profitability separately, these subsidiaries have been aggregated into one reportable segment due to the similarities in products and services, customer base, operations, profitability measures, and economic characteristics. Goodwill Goodwill represents the excess of the original cost over the fair value of assets acquired and liabilities assumed. Goodwill is not amortized but instead is subject to an annual impairment evaluation. The Company has selected December 31 as the date to perform the annual impairment test, and at December 31, 2019, the Company’s evaluation of goodwill indicated that goodwill was not impaired. Due to the economic weakness resulting from the COVID-19 pandemic, the Company completed an evaluation of goodwill as of March 31, 2020 which indicated that goodwill was not impaired as of March 31, 2020. Further goodwill impairment evaluations, which may result in goodwill impairment, may be necessary if events or circumstance changes would more likely than not reduce the fair value of a reporting unit below its carrying amount. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or stockholders’ equity. Subsequent Events In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential of recognition or disclosure through the date the financial statements were issued. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016‑13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016‑13 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 debt securities available-for-sale and purchased financial assets with credit deterioration. ASU 2016‑13 is effective for years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted for years beginning after December 31, 2018, including interim periods within those years. The Company is currently evaluating the effect that this standard will have on the consolidated results of operations and financial position. In January 2017, the FASB issued ASU 2017‑04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This ASU simplifies measurement of goodwill and eliminates Step 2 from the goodwill impairment test. Under the ASU, a company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for annual or any interim goodwill impairment tests in years beginning after December 15, 2022, including interim periods within those years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position.

SECURITIES

SECURITIES	6 Months Ended
	Jun. 30, 2020
SECURITIES
SECURITIES	NOTE 2 – SECURITIES The carrying balances of the securities were as follows: June 30, December 31, 2020 2019 (dollars in thousands) Debt securities available-for-sale $ 701,353 $ 592,404 Debt securities held-to-maturity 73,823 88,477 Equity securities: Readily determinable fair value 3,263 3,241 No readily determinable fair value 1,552 1,148 Total securities $ 779,991 $ 685,270 The Company has elected to measure the equity securities with no readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes for identical or similar securities of the same issuer. During the three and six months ended June 30, 2020 and 2019, there were no adjustments to the carrying balance of equity securities with no readily determinable fair value based on an observable price change of an identical investment. As of June 30, 2020 and December 31, 2019, the carrying balance of equity securities with no readily determinable fair value reflect cumulative downward adjustments based on observable price changes of $165,000. There have been no impairments or upward adjustments based on observable price changes to equity securities with no readily determinable fair value. The amortized cost and fair values of debt securities, with gross unrealized gains and losses, are as follows: June 30, 2020 Amortized Gross Gross Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ 75,881 $ 3,061 $ (7) $ 78,935 Municipal 191,453 6,885 (28) 198,310 Mortgage-backed: Agency residential 211,577 5,393 (101) 216,869 Agency commercial 133,149 5,022 (22) 138,149 Corporate 67,204 1,962 (76) 69,090 Total available-for-sale 679,264 22,323 (234) 701,353 Held-to-maturity: Municipal 28,528 1,507 — 30,035 Mortgage-backed: Agency residential 16,516 567 — 17,083 Agency commercial 28,779 2,420 — 31,199 Total held-to-maturity 73,823 4,494 — 78,317 Total debt securities $ 753,087 $ 26,817 $ (234) $ 779,670 December 31, 2019 Amortized Gross Gross Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ 49,113 $ 529 $ (27) $ 49,615 Municipal 131,241 2,503 (6) 133,738 Mortgage-backed: Agency residential 198,184 2,780 (286) 200,678 Agency commercial 133,730 1,516 (292) 134,954 Corporate 72,239 1,180 — 73,419 Total available-for-sale 584,507 8,508 (611) 592,404 Held-to-maturity: Municipal 45,239 1,340 — 46,579 Mortgage-backed: Agency residential 19,072 161 (170) 19,063 Agency commercial 24,166 775 (54) 24,887 Total held-to-maturity 88,477 2,276 (224) 90,529 Total debt securities $ 672,984 $ 10,784 $ (835) $ 682,933 As of June 30, 2020 and December 31, 2019, the Banks had debt securities with a carrying value of $342,031,000 and $284,895,000, respectively, which were pledged to secure public and trust deposits, securities sold under agreements to repurchase, and for other purposes required or permitted by law. The Company has no direct exposure to the State of Illinois, but approximately 43% of the obligations of local municipalities portfolio consists of debt securities issued by municipalities located in Illinois as of June 30, 2020. Approximately 89% of such debt securities were general obligation issues as of June 30, 2020. The amortized cost and fair value of debt securities by contractual maturity, as of June 30, 2020, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale Held-to-Maturity Amortized Fair Value Amortized Fair Value (dollars in thousands) Due in 1 year or less $ 32,518 $ 32,748 $ 748 $ 754 Due after 1 year through 5 years 92,615 95,593 14,963 15,733 Due after 5 years through 10 years 151,731 158,201 11,926 12,620 Due after 10 years 57,674 59,793 891 928 Mortgage-backed: Agency residential 211,577 216,869 16,516 17,083 Agency commercial 133,149 138,149 28,779 31,199 Total $ 679,264 $ 701,353 $ 73,823 $ 78,317 There were no sales of securities during the three and six months ended June 30, 2020 and 2019. Gains (losses) on securities were as follows during the three and six months ended June 30: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (dollars in thousands) Net realized gains (losses) on sales $ — $ — $ — $ — Net unrealized gains (losses) on equities: Readily determinable fair value 57 36 5 115 No readily determinable fair value — — — — Gains (losses) on securities $ 57 $ 36 $ 5 $ 115 The following tables present gross unrealized losses and fair value of debt securities, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position, as of June 30, 2020 and December 31, 2019: Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total June 30, 2020 Unrealized Fair Value Unrealized Fair Value Unrealized Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ (7) $ 3,605 $ — $ — $ (7) $ 3,605 Municipal (28) 4,989 — — (28) 4,989 Mortgage-backed: Agency residential (77) 15,955 (24) 7,194 (101) 23,149 Agency commercial — — (22) 6,038 (22) 6,038 Corporate (76) 9,924 — — (76) 9,924 Total available-for-sale (188) 34,473 (46) 13,232 (234) 47,705 Total debt securities $ (188) $ 34,473 $ (46) $ 13,232 $ (234) $ 47,705 Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total December 31, 2019 Unrealized Fair Value Unrealized Fair Value Unrealized Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ (26) $ 18,865 $ (1) $ 1,998 $ (27) $ 20,863 Municipal (6) 894 — — (6) 894 Mortgage-backed: Agency residential (108) 25,563 (178) 27,296 (286) 52,859 Agency commercial (100) 20,056 (192) 15,704 (292) 35,760 Total available-for-sale (240) 65,378 (371) 44,998 (611) 110,376 Held-to-maturity: Mortgage-backed: Agency residential (30) 2,516 (140) 9,002 (170) 11,518 Agency commercial (47) 7,016 (7) 599 (54) 7,615 Total held-to-maturity (77) 9,532 (147) 9,601 (224) 19,133 Total debt securities $ (317) $ 74,910 $ (518) $ 54,599 $ (835) $ 129,509 As of June 30, 2020, there were 9 debt securities in an unrealized loss position for a period of twelve months or more, and 28 debt securities in an unrealized loss position for a period of less than twelve months. These unrealized losses are primarily a result of fluctuations in market interest rates. In analyzing an issuer’s financial condition, management considers whether the debt securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. Management believes that all declines in value of these debt securities are deemed to be temporary.

LOANS AND THE ALLOWANCE FOR LOA

LOANS AND THE ALLOWANCE FOR LOAN LOSSES	6 Months Ended
	Jun. 30, 2020
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
LOANS AND THE ALLOWANCE FOR LOAN LOSSES	NOTE 3 – LOANS AND THE ALLOWANCE FOR LOAN LOSSES Major categories of loans are summarized as follows: June 30, December 31, 2020 2019 (dollars in thousands) Commercial and industrial $ 408,230 $ 307,175 Agricultural and farmland 239,101 207,776 Commercial real estate - owner occupied 228,506 231,162 Commercial real estate - non-owner occupied 535,339 579,757 Multi-family 186,440 179,073 Construction and land development 247,640 224,887 One-to-four family residential 308,133 313,580 Municipal, consumer, and other 122,406 120,416 Loans, before allowance for loan losses 2,275,795 2,163,826 Allowance for loan losses (29,723) (22,299) Loans, net of allowance for loan losses $ 2,246,072 $ 2,141,527 Paycheck Protection Program (PPP) Loans (included above) Commercial and industrial $ 166,868 $ — Agricultural and farmland 4,027 — Municipal, consumer, and other 7,063 — Total PPP loans $ 177,958 $ — The following tables detail activity in the allowance for loan losses for the three and six months ended June 30: Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and Three Months Ended June 30, 2020 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Allowance for loan losses: (dollars in thousands) Balance, March 31, 2020 $ 4,224 $ 2,993 $ 2,122 $ 4,432 $ 1,474 $ 3,223 $ 3,284 $ 4,335 $ 26,087 Provision for loan losses 125 (103) 1,135 2,275 107 135 (317) 216 3,573 Charge-offs — — — — — — (8) (152) (160) Recoveries 7 — — 60 — 8 51 97 223 Balance, June 30, 2020 $ 4,356 $ 2,890 $ 3,257 $ 6,767 $ 1,581 $ 3,366 $ 3,010 $ 4,496 $ 29,723 Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and Three Months Ended June 30, 2019 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Allowance for loan losses: (dollars in thousands) Balance, March 31, 2019 $ 3,762 $ 3,248 $ 2,353 $ 2,722 $ 972 $ 3,897 $ 3,067 $ 992 $ 21,013 Provision for loan losses 1,393 (356) 233 (7) 181 (587) 1,022 (73) 1,806 Charge-offs (27) (30) (101) — — (9) (602) (197) (966) Recoveries 59 — 2 6 — 422 82 118 689 Balance, June 30, 2019 $ 5,187 $ 2,862 $ 2,487 $ 2,721 $ 1,153 $ 3,723 $ 3,569 $ 840 $ 22,542 Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and Six Months Ended June 30, 2020 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Allowance for loan losses: (dollars in thousands) Balance, December 31, 2019 $ 4,441 $ 2,766 $ 1,779 $ 3,663 $ 1,024 $ 2,977 $ 2,540 $ 3,109 $ 22,299 Provision for loan losses 663 151 1,038 3,095 557 372 460 1,592 7,928 Charge-offs (809) (27) — (56) — (1) (112) (376) (1,381) Recoveries 61 — 440 65 — 18 122 171 877 Balance, June 30, 2020 $ 4,356 $ 2,890 $ 3,257 $ 6,767 $ 1,581 $ 3,366 $ 3,010 $ 4,496 $ 29,723 Commercial Commercial Commercial Agricultural Real Estate Real Estate Consumer and and Owner Non-owner Construction Residential and Six Months Ended June 30, 2019 Industrial Farmland Occupied Occupied Multi-Family and Land Real Estate Other Total Allowance for loan losses: (dollars in thousands) Balance, December 31, 2018 $ 3,748 $ 2,650 $ 2,506 $ 2,644 $ 912 $ 4,176 $ 2,782 $ 1,091 $ 20,509 Provision for loan losses 1,615 242 126 67 241 (877) 1,233 (65) 2,582 Charge-offs (283) (30) (166) — — (9) (639) (372) (1,499) Recoveries 107 — 21 10 — 433 193 186 950 Balance, June 30, 2019 $ 5,187 $ 2,862 $ 2,487 $ 2,721 $ 1,153 $ 3,723 $ 3,569 $ 840 $ 22,542 The following tables present the recorded investments in loans and the allowance for loan losses by category as of June 30, 2020 and December 31, 2019: Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and June 30, 2020 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Loan balances: (dollars in thousands) Collectively evaluated for impairment $ 398,730 $ 220,915 $ 207,606 $ 500,354 $ 185,152 $ 241,694 $ 286,969 $ 108,677 $ 2,150,097 Individually evaluated for impairment 7,704 17,216 12,737 20,095 — 2,661 11,344 13,651 85,408 Acquired with deteriorated credit quality 1,796 970 8,163 14,890 1,288 3,285 9,820 78 40,290 Total $ 408,230 $ 239,101 $ 228,506 $ 535,339 $ 186,440 $ 247,640 $ 308,133 $ 122,406 $ 2,275,795 Allowance for loan losses: Collectively evaluated for impairment $ 2,514 $ 2,854 $ 2,527 $ 6,152 $ 1,571 $ 2,975 $ 2,306 $ 1,005 $ 21,904 Individually evaluated for impairment 1,732 34 437 91 — 259 668 3,490 6,711 Acquired with deteriorated credit quality 110 2 293 524 10 132 36 1 1,108 Total $ 4,356 $ 2,890 $ 3,257 $ 6,767 $ 1,581 $ 3,366 $ 3,010 $ 4,496 $ 29,723 Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and December 31, 2019 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Loan balances: (dollars in thousands) Collectively evaluated for impairment $ 294,006 $ 192,722 $ 211,744 $ 561,277 $ 176,273 $ 217,708 $ 291,624 $ 106,448 $ 2,051,802 Individually evaluated for impairment 10,733 13,966 10,927 3,398 1,324 3,782 11,349 13,872 69,351 Acquired with deteriorated credit quality 2,436 1,088 8,491 15,082 1,476 3,397 10,607 96 42,673 Total $ 307,175 $ 207,776 $ 231,162 $ 579,757 $ 179,073 $ 224,887 $ 313,580 $ 120,416 $ 2,163,826 Allowance for loan losses: Collectively evaluated for impairment $ 1,926 $ 2,576 $ 1,486 $ 3,591 $ 1,019 $ 2,283 $ 1,684 $ 931 $ 15,496 Individually evaluated for impairment 2,170 105 270 70 — 567 822 2,176 6,180 Acquired with deteriorated credit quality 345 85 23 2 5 127 34 2 623 Total $ 4,441 $ 2,766 $ 1,779 $ 3,663 $ 1,024 $ 2,977 $ 2,540 $ 3,109 $ 22,299 The following tables present loans individually evaluated for impairment by category of loans as of June 30, 2020 and December 31, 2019: Unpaid Principal Recorded Related June 30, 2020 Balance Investment Allowance With an allowance recorded: (dollars in thousands) Commercial and industrial $ 3,052 $ 3,052 $ 1,732 Agricultural and farmland 174 174 34 Commercial real estate - owner occupied 1,303 1,303 437 Commercial real estate - non-owner occupied 166 166 91 Multi-family — — — Construction and land development 2,564 2,563 259 One-to-four family residential 2,821 2,803 668 Municipal, consumer, and other 8,881 8,854 3,490 Total $ 18,961 $ 18,915 $ 6,711 With no related allowance: Commercial and industrial $ 4,656 $ 4,652 $ — Agricultural and farmland 17,040 17,042 — Commercial real estate - owner occupied 11,436 11,434 — Commercial real estate - non-owner occupied 19,973 19,929 — Multi-family — — — Construction and land development 100 98 — One-to-four family residential 8,593 8,541 — Municipal, consumer, and other 4,809 4,797 — Total $ 66,607 $ 66,493 $ — Total Commercial and industrial $ 7,708 $ 7,704 $ 1,732 Agricultural and farmland 17,214 17,216 34 Commercial real estate - owner occupied 12,739 12,737 437 Commercial real estate - non-owner occupied 20,139 20,095 91 Multi-family — — — Construction and land development 2,664 2,661 259 One-to-four family residential 11,414 11,344 668 Municipal, consumer, and other 13,690 13,651 3,490 Total $ 85,568 $ 85,408 $ 6,711 Unpaid Principal Recorded Related December 31, 2019 Balance Investment Allowance With an allowance recorded: (dollars in thousands) Commercial and industrial $ 4,292 $ 4,292 $ 2,170 Agricultural and farmland 590 590 105 Commercial real estate - owner occupied 830 830 270 Commercial real estate - non-owner occupied 99 99 70 Multi-family — — — Construction and land development 3,679 3,679 567 One-to-four family residential 3,401 3,390 822 Municipal, consumer, and other 9,138 9,111 2,176 Total $ 22,029 $ 21,991 $ 6,180 With no related allowance: Commercial and industrial $ 6,438 $ 6,441 $ — Agricultural and farmland 13,369 13,376 — Commercial real estate - owner occupied 10,089 10,097 — Commercial real estate - non-owner occupied 3,297 3,299 — Multi-family 1,328 1,324 — Construction and land development 104 103 — One-to-four family residential 7,986 7,959 — Municipal, consumer, and other 4,775 4,761 — Total $ 47,386 $ 47,360 $ — Total Commercial and industrial $ 10,730 $ 10,733 $ 2,170 Agricultural and farmland 13,959 13,966 105 Commercial real estate - owner occupied 10,919 10,927 270 Commercial real estate - non-owner occupied 3,396 3,398 70 Multi-family 1,328 1,324 — Construction and land development 3,783 3,782 567 One-to-four family residential 11,387 11,349 822 Municipal, consumer, and other 13,913 13,872 2,176 Total $ 69,415 $ 69,351 $ 6,180 The following table presents the average recorded investment and interest income recognized for loans individually evaluated for impairment by category of loans during the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With an allowance recorded: (dollars in thousands) Commercial and industrial $ 3,126 $ 39 $ 5,864 $ 54 Agricultural and farmland 177 — 997 — Commercial real estate - owner occupied 1,312 27 3,415 10 Commercial real estate - non-owner occupied 167 3 102 — Multi-family — — 1,349 — Construction and land development 2,573 25 2,882 45 One-to-four family residential 2,868 31 3,818 27 Municipal, consumer, and other 8,911 105 224 2 Total $ 19,134 $ 230 $ 18,651 $ 138 With no related allowance: Commercial and industrial $ 5,095 $ 94 $ 10,490 $ 103 Agricultural and farmland 16,853 195 20,280 228 Commercial real estate - owner occupied 11,899 120 14,427 197 Commercial real estate - non-owner occupied 20,067 65 3,938 — Multi-family — — 2,400 81 Construction and land development 101 — 107 1 One-to-four family residential 8,666 141 10,406 51 Municipal, consumer, and other 4,835 1 17,369 109 Total $ 67,516 $ 616 $ 79,417 $ 770 Total Commercial and industrial $ 8,221 $ 133 $ 16,354 $ 157 Agricultural and farmland 17,030 195 21,277 228 Commercial real estate - owner occupied 13,211 147 17,842 207 Commercial real estate - non-owner occupied 20,234 68 4,040 — Multi-family — — 3,749 81 Construction and land development 2,674 25 2,989 46 One-to-four family residential 11,534 172 14,224 78 Municipal, consumer, and other 13,746 106 17,593 111 Total $ 86,650 $ 846 $ 98,068 $ 908 Six Months Ended June 30, 2020 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With an allowance recorded: (dollars in thousands) Commercial and industrial $ 3,306 $ 88 $ 5,940 $ 89 Agricultural and farmland 374 4 877 7 Commercial real estate - owner occupied 1,070 38 3,434 79 Commercial real estate - non-owner occupied 133 5 102 — Multi-family — — 1,354 — Construction and land development 2,819 66 2,887 89 One-to-four family residential 3,065 60 3,832 49 Municipal, consumer, and other 10,699 188 236 4 Total $ 21,466 $ 449 $ 18,662 $ 317 With no related allowance: Commercial and industrial $ 5,518 $ 152 $ 10,461 $ 196 Agricultural and farmland 14,687 356 20,417 342 Commercial real estate - owner occupied 11,166 251 14,656 332 Commercial real estate - non-owner occupied 11,704 106 3,958 54 Multi-family — — 2,431 81 Construction and land development 213 2 108 2 One-to-four family residential 8,505 203 10,488 120 Municipal, consumer, and other 3,102 57 17,417 110 Total $ 54,895 $ 1,127 $ 79,936 $ 1,237 Total Commercial and industrial $ 8,824 $ 240 $ 16,401 $ 285 Agricultural and farmland 15,061 360 21,294 349 Commercial real estate - owner occupied 12,236 289 18,090 411 Commercial real estate - non-owner occupied 11,837 111 4,060 54 Multi-family — — 3,785 81 Construction and land development 3,032 68 2,995 91 One-to-four family residential 11,570 263 14,320 169 Municipal, consumer, and other 13,801 245 17,653 114 Total $ 76,361 $ 1,576 $ 98,598 $ 1,554 The following tables present the recorded investment in loans by category based on current payment and accrual status as of June 30, 2020 and December 31, 2019: Accruing Interest 30 - 89 Days 90+ Days Total June 30, 2020 Current Past Due Past Due Nonaccrual Loans (dollars in thousands) Commercial and industrial $ 404,768 $ 109 $ — $ 3,353 $ 408,230 Agricultural and farmland 233,928 242 — 4,931 239,101 Commercial real estate - owner occupied 227,345 360 — 801 228,506 Commercial real estate - non-owner occupied 535,127 — — 212 535,339 Multi-family 186,440 — — — 186,440 Construction and land development 247,472 — — 168 247,640 One-to-four family residential 302,665 998 149 4,321 308,133 Municipal, consumer, and other 122,092 148 7 159 122,406 Total $ 2,259,837 $ 1,857 $ 156 $ 13,945 $ 2,275,795 Accruing Interest 30 - 89 Days 90+ Days Total December 31, 2019 Current Past Due Past Due Nonaccrual Loans (dollars in thousands) Commercial and industrial $ 301,975 $ 558 $ — $ 4,642 $ 307,175 Agricultural and farmland 201,519 — — 6,257 207,776 Commercial real estate - owner occupied 228,218 941 — 2,003 231,162 Commercial real estate - non-owner occupied 579,626 131 — — 579,757 Multi-family 177,696 — — 1,377 179,073 Construction and land development 224,716 140 — 31 224,887 One-to-four family residential 307,712 1,329 75 4,464 313,580 Municipal, consumer, and other 119,898 247 26 245 120,416 Total $ 2,141,360 $ 3,346 $ 101 $ 19,019 $ 2,163,826 The following tables present total loans by category based on their assigned risk ratings determined by management as of June 30, 2020 and December 31, 2019: June 30, 2020 Pass Pass-Watch Substandard Doubtful Total (dollars in thousands) Commercial and industrial $ 376,348 $ 22,442 $ 9,440 $ — $ 408,230 Agricultural and farmland 206,481 14,638 17,982 — 239,101 Commercial real estate - owner occupied 192,278 23,058 13,170 — 228,506 Commercial real estate - non-owner occupied 455,660 56,607 23,072 — 535,339 Multi-family 175,543 10,897 — — 186,440 Construction and land development 234,415 10,159 3,066 — 247,640 One-to-four family residential 283,601 12,073 12,459 — 308,133 Municipal, consumer, and other 108,508 256 13,642 — 122,406 Total $ 2,032,834 $ 150,130 $ 92,831 $ — $ 2,275,795 December 31, 2019 Pass Pass-Watch Substandard Doubtful Total (dollars in thousands) Commercial and industrial $ 267,645 $ 27,114 $ 12,416 $ — $ 307,175 Agricultural and farmland 180,735 12,267 14,774 — 207,776 Commercial real estate - owner occupied 198,710 21,745 10,707 — 231,162 Commercial real estate - non-owner occupied 531,694 46,092 1,971 — 579,757 Multi-family 175,807 1,771 1,495 — 179,073 Construction and land development 217,120 3,582 4,185 — 224,887 One-to-four family residential 287,036 13,546 12,998 — 313,580 Municipal, consumer, and other 106,063 479 13,874 — 120,416 Total $ 1,964,810 $ 126,596 $ 72,420 $ — $ 2,163,826 There were no troubled debt restructurings during the three and six months ended June 30, 2020. The following tables present the financial effect of troubled debt restructurings for the three and six months ended June 30, 2019: Charge-offs Recorded Investment and Specific Three Months Ended June 30, 2019 Number Pre-Modification Post-Modification Reserves (dollars in thousands) Commercial and industrial 3 $ 516 $ 516 $ — Agricultural and farmland 1 107 107 — Commercial real estate - owner occupied 1 170 170 — Total 5 $ 793 $ 793 $ — Charge-offs Recorded Investment and Specific Six Months Ended June 30, 2019 Number Pre-Modification Post-Modification Reserves (dollars in thousands) Commercial and industrial 3 $ 516 $ 516 $ — Agricultural and farmland 2 392 392 — Commercial real estate - owner occupied 1 170 170 — Total 6 $ 1,078 $ 1,078 $ — During the three and six months ended June 30, 2019, all troubled debt restructurings were the result of a payment concession. Of the troubled debt restructurings entered into during the last 12 months, there were none which had subsequent payment defaults during the three and six months ended June 30, 2020 and 2019. For purposes of this disclosure, the Company considers “default” to mean 90 days or more past due as to interest or principal or were on nonaccrual status subsequent to restructuring. As of June 30, 2020 and December 31, 2019, the Company had $8,387,000 and $9,315,000 of troubled debt restructurings, respectively. Restructured loans are evaluated for impairment quarterly as part of the Company’s determination of the allowance for loan losses. There were no material commitments to lend additional funds to debtors owing receivables whose terms have been modified in troubled debt restructurings. Changes in the accretable yield for loans acquired with deteriorated credit quality were as follows for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (dollars in thousands) Beginning balance $ 1,510 $ 1,710 $ 1,662 $ 2,101 Reclassification from non-accretable difference 38 271 46 407 Accretion income (170) (348) (330) (875) Ending balance $ 1,378 $ 1,633 $ 1,378 $ 1,633

LOAN SERVICING

LOAN SERVICING	6 Months Ended
	Jun. 30, 2020
LOAN SERVICING
LOAN SERVICING	NOTE 4 – LOAN SERVICING Mortgage loans serviced for others, which are not included in the accompanying consolidated balance sheets, amounted to $1,085,926,000 and $1,152,535,000 as of June 30, 2020 and December 31, 2019, respectively. Activity in mortgage servicing rights is as follows for the three months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (dollars in thousands) Beginning balance $ 6,347 $ 9,916 $ 8,518 $ 10,918 Capitalized servicing rights 560 216 774 376 Fair value adjustment: Attributable to payments and principal reductions (791) (438) (1,194) (744) Attributable to changes in valuation inputs and assumptions (277) (898) (2,259) (1,754) Total fair value adjustment (1,068) (1,336) (3,453) (2,498) Ending balance $ 5,839 $ 8,796 $ 5,839 $ 8,796

FORECLOSED ASSETS

FORECLOSED ASSETS	6 Months Ended
	Jun. 30, 2020
FORECLOSED ASSETS
FORECLOSED ASSETS	NOTE 5 – FORECLOSED ASSETS Foreclosed assets activity is as follows for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (dollars in thousands) Beginning balance $ 4,469 $ 10,151 $ 5,099 $ 9,559 Transfers from loans 308 353 327 1,761 Capitalized improvements 6 — 6 — Proceeds from sales (324) (458) (1,001) (969) Sales through loan origination (67) (91) (67) (360) Net gain (loss) on sales 69 16 144 105 Direct write-downs (11) (264) (58) (389) Ending balance $ 4,450 $ 9,707 $ 4,450 $ 9,707 Gains (losses) on foreclosed assets includes the following for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (dollars in thousands) Direct write-downs $ (11) $ (264) $ (58) $ (389) Net gain (loss) on sales 69 16 144 105 Guarantee reimbursements — 42 7 61 Gain on settlement — 375 — 375 Gains (losses) on foreclosed assets $ 58 $ 169 $ 93 $ 152 The carrying value of foreclosed one-to-four family residential real estate property as of June 30, 2020 and December 31, 2019, was $1,034,000 and $1,037,000, respectively. As of June 30, 2020, there were 9 one-to-four family residential real estate loans in the process of foreclosure totaling approximately $594,000. As of December 31, 2019, there were 10 residential real estate loans in the process of foreclosure totaling approximately $588,000.

DEPOSITS

DEPOSITS	6 Months Ended
	Jun. 30, 2020
DEPOSITS
DEPOSITS	NOTE 6 – DEPOSITS The Company’s deposits are summarized below: June 30, 2020 December 31, 2019 (dollars in thousands) Noninterest-bearing deposits $ 856,030 $ 689,116 Interest-bearing deposits: Interest-bearing demand 880,007 814,639 Money market 480,497 477,765 Savings 487,761 438,927 Time 310,818 356,408 Total interest-bearing deposits 2,159,083 2,087,739 Total deposits $ 3,015,113 $ 2,776,855 Money market deposits include $7,798,000 and $14,309,000 of reciprocal transaction deposits as of June 30, 2020 and December 31, 2019, respectively. Time deposits include $3,679,000 and $3,538,000 of reciprocal time deposits as of June 30, 2020 and December 31, 2019, respectively. The aggregate amounts of time deposits in denominations of $250,000 or more amounted to $24,602,000 and $44,754,000 as of June 30, 2020 and December 31, 2019, respectively. The aggregate amounts of time deposits in denominations of $100,000 or more amounted to $101,136,000 and $130,293,000 as of June 30, 2020 and December 31, 2019, respectively. The components of interest expense on deposits for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (dollars in thousands) Interest-bearing demand $ 162 $ 411 $ 413 $ 828 Money market 118 489 512 859 Savings 50 69 120 137 Time 712 1,142 1,592 2,270 Total interest expense on deposits $ 1,042 $ 2,111 $ 2,637 $ 4,094

BORROWINGS

BORROWINGS	6 Months Ended
	Jun. 30, 2020
BORROWINGS
BORROWINGS	NOTE 7 – BORROWINGS There were no Federal Home Loan Bank of Chicago (FHLB) borrowings outstanding as of June 30, 2020 and December 31, 2019. Available borrowings from the FHLB are secured by FHLB stock held by the Company and pledged security in the form of qualifying loans. The total amount of loans pledged as of June 30, 2020 and December 31, 2019 was $535,798,000 and $548,229,000, respectively. As of June 30, 2020 and December 31, 2019, loans pledged also served as collateral for credit exposure of approximately $355,000 associated with the Banks’ participation in the FHLB’s Mortgage Partnership Finance Program. The Banks also have available a line of credit from the Federal Reserve Bank of Chicago (FRB) with available borrowings based on the collateral pledged. As of June 30, 2020 and December 31, 2019, the carrying value of debt securities pledged amounted to $515,000 and $515,000, respectively. There was no outstanding balance under the line of credit as of June 30, 2020 and December 31, 2019. The line, when drawn upon, is due on demand and bears interest at a variable rate.

SUBORDINATED DEBENTURES

SUBORDINATED DEBENTURES	6 Months Ended
	Jun. 30, 2020
SUBORDINATED DEBENTURES
SUBORDINATED DEBENTURES	NOTE 8 – SUBORDINATED DEBENTURES Five subsidiary business trusts of the Company have issued floating rate capital securities (“capital securities”) which are guaranteed by the Company. The Company owns all of the outstanding stock of the five subsidiary business trusts. The trusts used the proceeds from the issuance of their capital securities to buy floating rate junior subordinated deferrable interest debentures (“debentures”) issued by the Company. These debentures are the only assets of the trusts and the interest payments from the debentures finance the distributions paid on the capital securities. The debentures are unsecured and rank junior and subordinate in the right of payment to all senior debt of the Company. The trusts are not consolidated in the Company’s financial statements. The carrying value of subordinated debentures are summarized as follows: June 30, 2020 December 31, 2019 (dollars in thousands) Heartland Bancorp, Inc. Capital Trust B $ 10,310 $ 10,310 Heartland Bancorp, Inc. Capital Trust C 10,310 10,310 Heartland Bancorp, Inc. Capital Trust D 5,155 5,155 FFBI Capital Trust I 7,217 7,217 National Bancorp Statutory Trust I 4,624 4,591 Total $ 37,616 $ 37,583 The National Bancorp Statutory Trust I debenture was assumed through a business combination and has a contractual obligation of $5,773,000. The interest rates on the subordinated debentures are variable, reset quarterly, and are equal to the three-month LIBOR, as determined on the LIBOR Determination Date immediately preceding each Distribution Payment Date specific to each subordinated debenture, plus a fixed percentage. The interest rates and maturities of the subordinated debentures are summarized as follows: Interest Rate at Variable June 30, December 31, Maturity Interest Rate 2020 2019 Date Heartland Bancorp, Inc. Capital Trust B LIBOR plus 2.75 % 3.97 % 4.74 % April 6, 2034 Heartland Bancorp, Inc. Capital Trust C LIBOR plus 1.53 1.84 3.42 June 15, 2037 Heartland Bancorp, Inc. Capital Trust D LIBOR plus 1.35 1.66 3.24 September 15, 2037 FFBI Capital Trust I LIBOR plus 2.80 4.02 4.79 April 6, 2034 National Bancorp Statutory Trust I LIBOR plus 2.90 3.21 4.79 December 31, 2037 The distribution rate payable on the debentures is cumulative and payable quarterly in arrears. The Company has the right, subject to events in default, to defer payments of interest on the debentures at any time by extending the interest payment period for a period not exceeding 10 quarterly periods with respect to each deferral period, provided that no extension period may extend beyond the redemption or maturity date of the debentures. The capital securities are subject to mandatory redemption upon payment of the debentures and carry an interest rate identical to that of the related debenture. The debentures maturity dates may be shortened if certain conditions are met, or at any time within 90 days following the occurrence and continuation of certain changes in either tax treatment or the capital treatment of the debentures or the capital securities. If the debentures are redeemed before they mature, the redemption price will be the principal amount plus any accrued but unpaid interest. The Company has the right to terminate each Capital Trust and cause the debentures to be distributed to the holders of the capital securities in liquidation of such trusts. Under current banking regulations, bank holding companies are allowed to include qualifying trust preferred securities in their Tier 1 Capital for regulatory capital purposes, subject to a 25% limitation to all core (Tier 1) capital elements, net of goodwill and other intangible assets less any associated deferred tax liability. As of June 30, 2020 and December 31, 2019, 100% of the trust preferred securities qualified as Tier 1 capital under the final rule adopted in March 2005.

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2020
DERIVATIVE FINANCIAL INSTRUMENTS
DERIVATIVE FINANCIAL INSTRUMENTS	NOTE 9 – DERIVATIVE FINANCIAL INSTRUMENTS Derivative financial instruments are negotiated contracts entered into by two issuing counterparties containing specific agreement terms, including the underlying instrument, amount, exercise price, and maturities. The derivatives accounting guidance requires that the Company recognize all derivative financial instruments as either assets or liabilities at fair value in the consolidated balance sheets. The Company may utilize interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. Interest Rate Swaps Designated as Cash Flow Hedges The Company designated certain interest rate swap agreements as cash flow hedges on variable-rate borrowings. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on interest rate swaps designated as cash flow hedging instruments are reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. The interest rate swap agreements designated as cash flow hedges are summarized as follows: June 30, 2020 December 31, 2019 Notional Fair Notional Fair Amount Value Amount Value Designated as cash flow hedges: (dollars in thousands) Fair value recorded in other liabilities $ 17,000 $ (1,674) $ 17,000 $ (676) As of June 30, 2020, the interest rate swap agreements designated as cash flow hedges had contractual maturities between 2024 and 2025. As of June 30, 2020 and December 31, 2019, the Company had cash pledged of $1,630,000 and $710,000, respectively, held on deposit at counterparties. During the three months ended March 31, 2019, the Company had an interest rate swap contract with a notional amount of $10,000,000 designated as a cash flow hedge on variable-rate loans. Beginning April 1, 2019, this hedging relationship was no longer considered highly effective, and the Company discontinued hedge accounting. In accordance with hedge accounting guidance, the net unrealized gain associated with the discontinued hedging relationship, recorded within accumulated other comprehensive income, was reclassified into earnings through April 7, 2020, the period the hedged forecasted transactions affect earnings. For the three and six months ended June 30, 2020 and 2019, the effect of interest rate swap agreements designated as cash flow hedges on the consolidated statements of income are summarized as follows: Location of gross gain (loss) reclassified Amounts of gross gain (loss) from accumulated other reclassified from accumulated comprehensive income to income other comprehensive income Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Designated as cash flow hedges: (dollars in thousands) Taxable loan interest income $ 32 $ 20 $ 64 $ 50 Subordinated debentures interest expense (71) 2 (105) 2 Total $ (39) $ 22 $ (41) $ 52 Interest Rate Swaps Not Designated as Hedging Instruments The Company may offer interest rate swap agreements to its commercial borrowers in connection with their risk management needs. The Company manages the risk associated with these contracts by entering into an equal and offsetting derivative with a third-party financial institution. While these interest rate swap agreements generally worked together as an economic interest rate hedge, the Company did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred. The interest rate swap agreements not designated as hedging instruments are summarized as follows: June 30, 2020 December 31, 2019 Notional Fair Notional Fair Amount Value Amount Value Not designated as hedging instruments: (dollars in thousands) Fair value recorded in other assets: Interest rate swaps with commercial borrower counterparties $ 142,062 $ 22,965 $ 114,140 $ 8,532 Interest rate swaps with financial institution counterparty — — 24,216 110 Total fair value recorded in other assets $ 142,062 $ 22,965 $ 138,356 $ 8,642 Fair value recorded in other liabilities: Interest rate swaps with commercial borrower counterparties $ — $ — $ 24,216 $ (110) Interest rate swaps with financial institution counterparty 142,062 (22,965) 114,140 (8,532) Total fair value recorded in other liabilities $ 142,062 $ (22,965) $ 138,356 $ (8,642) As of June 30, 2020, the interest rate swap agreements not designated as hedging instruments had contractual maturities between 2022 and 2042. As of June 30, 2020 and December 31, 2019, the Company had $23,804,000 and $8,713,000, respectively, of debt securities pledged and held in safekeeping at the financial institution counterparty. For the three and six months ended June 30, 2020 and 2019, the effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income on the consolidated statements of income are summarized as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Not designated as hedging instruments: (dollars in thousands) Gross gains $ 1,610 $ 4,876 $ 15,181 $ 6,045 Gross losses (1,610) (4,839) (15,181) (6,008) Net gains (losses) $ — $ 37 $ — $ 37

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	6 Months Ended
	Jun. 30, 2020
ACCUMULATED OTHER COMPREHENSIVE INCOME
ACCUMULATED OTHER COMPREHENSIVE INCOME	NOTE 10 – ACCUMULATED OTHER COMPREHENSIVE INCOME The following table presents the activity and accumulated balances for components of other comprehensive income (loss) for the three and six months ended June 30, 2020 and 2019: Unrealized Gains (Losses) on Debt Securities Available-for-Sale Held-to-Maturity Derivatives Total (dollars in thousands) Three Months Ended June 30, 2020 Balance, March 31, 2020 $ 14,095 $ (138) $ (1,388) $ 12,569 Other comprehensive income (loss) before reclassifications 6,590 — (133) 6,457 Reclassifications — 6 39 45 Other comprehensive income (loss), before tax 6,590 6 (94) 6,502 Income tax expense (benefit) 1,879 1 (20) 1,860 Other comprehensive income (loss), after tax 4,711 5 (74) 4,642 Balance, June 30, 2020 $ 18,806 $ (133) $ (1,462) $ 17,211 Three Months Ended June 30, 2019 Balance, March 31, 2019 $ 1,095 $ 40 $ (123) $ 1,012 Other comprehensive income (loss) before reclassifications 6,968 — (445) 6,523 Reclassifications — (77) (22) (99) Other comprehensive loss 6,968 (77) (467) 6,424 Balance, June 30, 2019 $ 8,063 $ (37) $ (590) $ 7,436 Six Months Ended June 30, 2020 Balance, December 31, 2019 $ 8,659 $ (131) $ (696) $ 7,832 Other comprehensive income (loss) before reclassifications 14,192 — (1,103) 13,089 Reclassifications — (3) 41 38 Other comprehensive income (loss), before tax 14,192 (3) (1,062) 13,127 Income tax expense (benefit) 4,045 (1) (296) 3,748 Other comprehensive income (loss), after tax 10,147 (2) (766) 9,379 Balance, June 30, 2020 $ 18,806 $ (133) $ (1,462) $ 17,211 Six Months Ended June 30, 2019 Balance, December 31, 2018 $ (4,561) $ 122 $ 151 $ (4,288) Other comprehensive income (loss) before reclassifications 12,624 — (689) 11,935 Reclassifications — (159) (52) (211) Other comprehensive loss 12,624 (159) (741) 11,724 Balance, June 30, 2019 $ 8,063 $ (37) $ (590) $ 7,436 The amounts reclassified from accumulated other comprehensive income (loss) for unrealized gains (losses) on debt securities available-for-sale are included in gain (loss) on securities in the accompanying consolidated statements of income. The amounts reclassified from accumulated other comprehensive income (loss) for unrealized gains on debt securities held-to-maturity are included in securities interest income in the accompanying consolidated statements of income. The amounts reclassified from accumulated other comprehensive income (loss) for the fair value of derivative financial instruments represent net interest payments received or made on derivatives designated as cash flow hedges. See Note 9 for additional information.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2020
INCOME TAXES
INCOME TAXES	NOTE 11 – INCOME TAXES Effective October 11, 2019, the Company voluntarily revoked its S Corporation status and became a taxable entity (C Corporation). As such, any periods prior to October 11, 2019 will only reflect an effective state replacement tax rate. The consolidated statements of income present unaudited pro forma C Corp equivalent information for the three and six months ended June 30, 2019. Allocation of income tax expense between current and deferred portions for the three and six months ended June 30 is as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (dollars in thousands) Current Federal $ 977 $ — $ 2,698 $ — State 637 305 1,625 520 Total current 1,614 305 4,323 520 Deferred Federal 580 — 123 — State 283 — 62 — Total deferred 863 — 185 — Income tax expense $ 2,477 $ 305 $ 4,508 $ 520 Income tax expense differs from the statutory federal rate for the three and six months ended June 30 due to the following: Three Months Ended June 30, 2020 2019 Amount Percentage Amount Percentage (dollars in thousands) Federal income tax, at statutory rate $ 2,078 21.0 % $ — — % Increase (decrease) resulting from: Federally tax exempt interest income (370) (3.7) — — State taxes, net of federal benefit 727 7.3 305 2.0 Other 42 0.4 — — Income tax expense $ 2,477 25.0 % $ 305 2.0 % Six Months Ended June 30, 2020 2019 Amount Percentage Amount Percentage (dollars in thousands) Federal income tax, at statutory rate $ 3,811 21.0 % $ — — % Increase (decrease) resulting from: Federally tax exempt interest income (727) (4.0) — — State taxes, net of federal benefit 1,358 7.5 520 1.5 Other 66 0.3 — — Income tax expense $ 4,508 24.8 % $ 520 1.5 % The components of the net deferred tax asset as of June 30, 2020 and December 31, 2019 are as follows: June 30, December 31, 2020 2019 (dollars in thousands) Deferred tax assets Allowance for loan losses $ 8,398 $ 6,309 Compensation related 2,035 5,859 Deferred loan fees 2,156 497 Nonaccrual interest 668 858 Foreclosed assets 65 574 Goodwill 434 531 Other 1,099 785 Total deferred tax assets 14,855 15,413 Deferred tax liabilities Fixed asset depreciation 4,380 4,201 Mortgage servicing rights 1,665 2,428 Other purchase accounting adjustments 1,273 1,356 Intangible assets 709 841 Prepaid assets 678 504 Net unrealized gain on debt securities available-for-sale 6,296 2,251 Other 381 426 Total deferred tax liabilities 15,382 12,007 Net deferred tax asset (liability) $ (527) 3,406

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2020
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 12 – EARNINGS PER SHARE ASC 260, Earnings Per Share , requires unvested share-based payment awards that have non-forfeitable rights to dividends or dividend equivalents as a separate class of securities in calculating earnings per share. The Company has granted restricted stock units that contain non-forfeitable rights to dividend equivalents. Such restricted stock units are considered participating securities. As such, we have included these restricted stock units in the calculation of basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Diluted earnings per share is computed using the treasury stock method and reflects the potential dilution that could occur if the Company’s outstanding restricted stock units were vested. For the three and six months end June 30, 2020, the restricted stock units were considered anti-dilutive and excluded from the calculation of common stock equivalents. There were no restricted stock units outstanding during the three and six months ended June 30, 2019. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (dollars in thousands) Numerator: Net income $ 7,419 $ 14,605 $ 13,640 $ 33,341 Earnings allocated to unvested restricted stock units (19) — (34) — Numerator for earnings per share - basic and diluted $ 7,400 $ 14,605 $ 13,606 $ 33,341 Denominator: Weighted average common shares outstanding 27,457,306 18,027,512 27,457,306 18,027,512 Dilutive effect of outstanding restricted stock units — — — — Weighted average common shares outstanding, including all dilutive potential shares 27,457,306 18,027,512 27,457,306 18,027,512 Earnings per share - Basic $ 0.27 $ 0.81 $ 0.50 $ 1.85 Earnings per share - Diluted $ 0.27 $ 0.81 $ 0.50 $ 1.85

DEFERRED COMPENSATION

DEFERRED COMPENSATION	6 Months Ended
	Jun. 30, 2020
EMPLOYEE BENEFIT PLANS
DEFERRED COMPENSATION	NOTE 13 – DEFERRED COMPENSATION The Company maintained a supplemental executive retirement plan (the SERP) for certain key executive officers. The SERP benefit payments were scheduled to be paid in equal monthly installments over 30 years. In June 2019, the Company approved termination of the SERP agreements, and a lump sum payment was made in June 2020 to each participant equal to the present value of any remaining installment payments. As of June 30, 2020, there was no remaining deferred compensation liability for the SERP. As of December 31, 2019, the deferred compensation liability for the SERP was $12,789,000. During the three months ended June 30, 2020 and 2019, the Company recognized deferred compensation expense for the SERP of $690,000 and $3,440,000, respectively. During the six months ended June 30, 2020 and 2019, the Company recognized deferred compensation expense for the SERP of $1,660,000 and $3,565,000, respectively.

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS	6 Months Ended
	Jun. 30, 2020
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS	NOTE 14 – STOCK-BASED COMPENSATION PLANS The Company has adopted the HBT Financial, Inc. Omnibus Incentive Plan (the “Omnibus Incentive Plan”). The Omnibus Incentive Plan provides for grants of (i) stock options, (ii) stock appreciation rights, (iii) restricted shares, (iv) restricted stock units, (v) performance awards, (vi) other share-based awards and (vi) other cash-based awards to eligible employees, non-employee directors and consultants of the Company. The maximum number of shares of common stock available for issuance under the Omnibus Incentive Plan is 1,820,000 shares. The following is a summary of stock-based compensation expense (benefit) during the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (dollars in thousands) Restricted stock units $ 96 $ — $ 163 $ — Stock appreciation rights 107 — (228) (115) Total stock-based compensation expense (benefit) $ 203 $ — $ (65) $ (115) Restricted Stock Units A restricted stock unit grants a participant the right to receive one share of common stock, following the completion of the requisite service period. Restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and is recognized on a straight-line basis over the vesting period for the entire award. Non-forfeitable dividend equivalents are paid on non-vested restricted stock units and are classified as dividends charged to retained earnings. If restricted stock units are subsequently forfeited, the non-forfeitable dividends related to the forfeited restricted stock units are reclassified to compensation cost in the period the forfeiture occurs. On January 28, 2020, the Company granted 70,400 restricted stock units to certain key employees which vest in four equal annual installments beginning on February 1, 2021. On January 28, 2020, the Company also granted 2,750 restricted stock units to non-employee directors which vest on February 1, 2021. The total fair value of the restricted stock units granted on January 28, 2020 was $1,392,000, based on the grant date closing price of $19.03 per share. On June 24, 2020, the Company also granted 550 restricted stock units to a non-employee director which vest on February 1, 2021. The total fair value of the restricted stock units granted on June 24, 2020 was $7,000, based on the grant date closing price of $12.71 per share. The following is a summary of outstanding restricted stock unit activity: Three Months Ended June 30, 2020 2019 Weighted Weighted Restricted Average Restricted Average Stock Units Grant Date Stock Units Grant Date Outstanding Fair Value Outstanding Fair Value Beginning balance 73,150 $ 19.03 — $ — Granted 550 12.71 — — Vested — — — — Forfeited — — — — Ending balance 73,700 $ 18.98 — $ — Six Months Ended June 30, 2020 2019 Weighted Weighted Restricted Average Restricted Average Stock Units Grant Date Stock Units Grant Date Outstanding Fair Value Outstanding Fair Value Beginning balance — $ — — $ — Granted 73,700 18.98 — — Vested — — — — Forfeited — — — — Ending balance 73,700 $ 18.98 — $ — A further summary of outstanding restricted stock units as of June 30, 2020, is as follows: Weighted Average Remaining Range of Grant Date Fair Values Outstanding Contractual Term $ 12.71 550 0.6 years $ 19.03 73,150 3.5 years As of June 30, 2020, unrecognized compensation cost related to non-vested restricted stock units was $1,236,000. Stock Appreciation Rights A stock appreciation right grants a participant the right to receive an amount of cash, the value of which equals the appreciation in the Company’s stock price between the grant date and the exercise date. Stock appreciation rights units are classified as liabilities. Prior to becoming a public entity, the liability was based on the intrinsic value of the stock appreciation rights, calculated using the grant date assigned value and an independent appraisal of the Company’s stock price that was subject to approval by the Board of Directors. Since becoming a public entity on October 11, 2019, the liability was based on an option-pricing model used to estimate the fair value of the stock appreciation rights. Compensation cost for unvested stock appreciation rights is recognized on a straight line basis over the vesting period of the entire award. The unvested stock appreciation rights vest in four equal annual installments beginning on the first anniversary of the grant date. The following is a summary of outstanding stock appreciation rights activity: Three Months Ended June 30, 2020 2019 Stock Weighted Stock Weighted Beginning balance 110,160 $ 16.32 91,800 $ 5.73 Granted — — — — Exercised — — (48,960) 4.21 Forfeited — — — — Ending balance 110,160 $ 16.32 42,840 $ 7.46 Six Months Ended June 30, 2020 2019 Stock Weighted Stock Weighted Beginning balance 110,160 $ 16.32 91,800 $ 5.73 Granted — — — — Exercised — — (48,960) 4.21 Forfeited — — — — Ending balance 110,160 $ 16.32 42,840 $ 7.46 A further summary of outstanding stock appreciation rights as of June 30, 2020, is as follows: Weighted Average Remaining Range of Grant Date Assigned Values Outstanding Exercisable Contractual Term $ 16.32 110,160 79,560 9.2 years As of June 30, 2020, unrecognized compensation cost related to non-vested stock appreciation rights was $51,000. As of June 30, 2020 and December 31, 2019, the liability recorded for outstanding stock appreciation rights was $181,000 and $409,000, respectively. As of June 30, 2020 and December 31, 2019, the Company used an option pricing model to value the stock appreciation rights, using the assumptions in the following table. Expected volatility is derived from the historical volatility of the Company’s stock price and a selected peer group of industry-related companies. June 30, December 31, 2020 2019 Risk-free interest rate 0.61 % 1.90 % Expected volatility 34.32 % 28.83 % Expected life (in years) 9.2 9.7 Expected dividend yield 4.50 % 3.16 % As of June 30, 2020, the liability recorded for previously exercised stock appreciation rights was $1,206,000, which will be paid in four remaining equal annual installments. As of December 31, 2019, the liability recorded for previously exercised units was $1,512,000.

REGULATORY MATTERS

REGULATORY MATTERS	6 Months Ended
	Jun. 30, 2020
REGULATORY MATTERS
REGULATORY MATTERS	NOTE 15 – REGULATORY MATTERS The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. As allowed under the Basel III rules, the Banks and Company elected to exclude accumulated other comprehensive income, including unrealized gains and losses on debt securities, in the computation of regulatory capital. The ability of the Company to pay dividends to its stockholders is dependent upon the ability of the Banks to pay dividends to the Company. The Banks are subject to certain statutory and regulatory restrictions on the amount it may pay in dividends. Under the Basel III regulations, a capital conservation buffer calculation will phase in over five years which limits allowable bank dividends if regulatory capital ratios fall below specific thresholds. As of June 30, 2020 and December 31, 2019, the capital conservation buffer was 2.5%. HBT Financial, Inc. (on a consolidated basis) and the Banks are each subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by the regulators that, if undertaken, could have a direct material effect on the financial statements of HBT Financial, Inc. and the Banks. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, HBT Financial, Inc. (on a consolidated basis) and the Banks must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Management believes, as of June 30, 2020 and December 31, 2019, that HBT Financial, Inc. and the Banks each met all capital adequacy requirements to which they are subject. The actual and required capital amounts and ratios of HBT Financial, Inc. (on a consolidated basis) and the Banks are as follows: Actual For Capital To Be Well June 30, 2020 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 370,484 % $ 195,840 8.00 % N/A N/A Heartland Bank 327,109 180,224 8.00 $ 225,280 10.00 % State Bank of Lincoln 35,891 15,444 8.00 19,305 10.00 Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 340,761 % $ 146,880 6.00 % N/A N/A Heartland Bank 299,935 135,168 6.00 $ 180,224 8.00 % State Bank of Lincoln 33,477 11,583 6.00 15,444 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 304,310 % $ 110,160 4.50 % N/A N/A Heartland Bank 299,935 101,376 4.50 $ 146,432 6.50 % State Bank of Lincoln 33,477 8,687 4.50 12,548 6.50 Tier 1 Capital (to Average Assets) Consolidated HBT Financial, Inc. $ 340,761 % $ 136,357 4.00 % N/A N/A Heartland Bank 299,935 122,741 4.00 $ 153,426 5.00 % State Bank of Lincoln 33,477 13,488 4.00 16,861 5.00 Actual For Capital To Be Well December 31, 2019 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 356,994 % $ 196,358 8.00 % N/A N/A Heartland Bank 315,516 180,071 8.00 $ 225,088 10.00 % State Bank of Lincoln 35,390 16,104 8.00 20,130 10.00 Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 334,695 % $ 147,268 6.00 % N/A N/A Heartland Bank 295,385 135,053 6.00 $ 180,071 8.00 % State Bank of Lincoln 33,222 12,078 6.00 16,104 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 298,277 % $ 110,451 4.50 % N/A N/A Heartland Bank 295,385 101,290 4.50 $ 146,307 6.50 % State Bank of Lincoln 33,222 9,058 4.50 13,084 6.50 Tier 1 Capital (to Average Assets) Consolidated HBT Financial, Inc. $ 334,695 % $ 129,027 4.00 % N/A N/A Heartland Bank 295,385 115,281 4.00 $ 144,102 5.00 % State Bank of Lincoln 33,222 13,531 4.00 16,914 5.00

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2020
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 16 – FAIR VALUE OF FINANCIAL INSTRUMENTS Recurring Basis The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Additional information on fair value measurements are summarized in Note 1 to the Company’s annual consolidated financial statements included in the Annual Report on Form 10-K filed with the SEC on March 27, 2020. There were no transfers between levels during the three and six months ended June 30, 2020 and 2019. The Company’s policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria change and result in transfer between levels. The following tables present the balances of the assets measured at fair value on a recurring basis: June 30, 2020 Level 1 Level 2 Level 3 Total (dollars in thousands) Debt securities available-for-sale: U.S. government agency $ — $ 78,935 $ — $ 78,935 Municipal — 198,310 — 198,310 Mortgage-backed: Agency residential — 216,869 — 216,869 Agency commercial — 138,149 — 138,149 Corporate — 69,090 — 69,090 Equity securities with readily determinable fair values 3,263 — — 3,263 Mortgage servicing rights — — 5,839 5,839 Derivative financial assets — 22,965 — 22,965 Derivative financial liabilities — 24,639 — 24,639 December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Debt securities available-for-sale: U.S. government agency $ — $ 49,615 $ — $ 49,615 Municipal — 133,738 — 133,738 Mortgage-backed: Agency residential — 200,678 — 200,678 Agency commercial — 134,954 — 134,954 Corporate — 73,419 — 73,419 Equity securities with readily determinable fair values 3,241 — — 3,241 Mortgage servicing rights — — 8,518 8,518 Derivative financial assets — 8,642 — 8,642 Derivative financial liabilities — 9,318 — 9,318 The following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy. There were no changes to the valuation techniques from December 31, 2019 to June 30, 2020. Investment Securities When available, the Company uses quoted market prices to determine the fair value of securities; such items are classified in Level 1 of the fair value hierarchy. For the Company’s securities where quoted prices are not available for identical securities in an active market, the Company determines fair value utilizing vendors who apply matrix pricing for similar bonds where no price is observable or may compile prices from various sources. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace. Fair values from these models are verified, where possible, against quoted market prices for recent trading activity of assets with similar characteristics to the security being valued. Such methods are generally classified as Level 2. However, when prices from independent sources vary, cannot be obtained or cannot be corroborated, a security is generally classified as Level 3. The change in fair value of debt securities available-for-sale is recorded through an adjustment to the consolidated statement of comprehensive income. The change in fair value of equity securities with readily determinable fair values is recorded through an adjustment to the consolidated statement of income. Derivative Financial Instruments Interest rate swap agreements are carried at fair value as determined by dealer valuation models. Based on the inputs used, the derivative financial instruments subjected to recurring fair value adjustments are classified as Level 2. For derivative financial instruments designated as a hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of comprehensive income. For derivative financial instruments not designated as a hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of income. Mortgage Servicing Rights The Company has elected to record its mortgage servicing rights at fair value. Mortgage servicing rights do not trade in an active market with readily observable prices. Accordingly, the Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced as calculated by an independent third party. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds and discount rates. Due to the nature of the valuation inputs, mortgage servicing rights are classified as Level 3. The change in fair value is recorded through an adjustment to the consolidated statement of income. The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands): June 30, 2020 Fair Value Valuation Technique Unobservable Inputs Range Mortgage servicing rights $ 5,839 Discounted cash flows Constant pre-payment rates (CPR) 7.0% to 77.3% (16.5%) Discount rate 9.0% to 11.0% (9.0%) December 31, 2019 Fair Value Valuation Technique Unobservable Inputs Range Mortgage servicing rights $ 8,518 Discounted cash flows Constant pre-payment rates (CPR) 7.0% to 68.5% (12.3%) Discount rate 9.0% to 11.0% (9.0%) Nonrecurring Basis Certain assets are measured at fair value on a nonrecurring basis. These assets are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as there is evidence of impairment or a change in the amount of previously recognized impairment. The following tables present the balances of the assets measured at fair value on a nonrecurring basis: June 30, 2020 Level 1 Level 2 Level 3 Total (dollars in thousands) Loans held for sale $ — $ 25,934 $ — $ 25,934 Collateral-dependent impaired loans — — 12,204 12,204 Bank premises held for sale — — 121 121 Foreclosed assets — — 4,450 4,450 December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Loans held for sale $ — $ 4,531 $ — $ 4,531 Collateral-dependent impaired loans — — 15,811 15,811 Bank premises held for sale — — 121 121 Foreclosed assets — — 5,099 5,099 Loans Held for Sale Mortgage loans originated and held for sale are carried at the lower of cost or estimated fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically, these quotes include a premium on the sale and thus these quotes indicate fair value of the held for sale loans is greater than cost. Collateral-Dependent Impaired Loans In accordance with the provisions of the loan impairment guidance, impairment was measured for loans which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement. The fair value of collateral-dependent impaired loans is estimated based on the fair value of the underlying collateral supporting the loan. Collateral-dependent impaired loans require classification in the fair value hierarchy. Impaired loans include loans acquired with deteriorated credit quality. Collateral values are estimated using Level 3 inputs based on customized discounting criteria. Bank Premises Held for Sale Bank premises held for sale are recorded at the lower of cost or fair value, less estimated selling costs, at the date classified as held for sale. Values are estimated using Level 3 inputs based on appraisals and customized discounting criteria. The carrying value of bank premises held for sale is not re-measured to fair value on a recurring basis but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs. Foreclosed Assets Foreclosed assets are recorded at fair value based on property appraisals, less estimated selling costs, at the date of the transfer. Subsequent to the transfer, foreclosed assets are carried at the lower of cost or fair value, less estimated selling costs. Values are estimated using Level 3 inputs based on appraisals and customized discounting criteria. The carrying value of foreclosed assets is not re-measured to fair value on a recurring basis but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs. Collateral-Dependent Impaired Loans, Bank Premises Held for Sale, and Foreclosed Assets The estimated fair value of collateral-dependent impaired loans, bank premises held for sale, and foreclosed assets is based on the appraised fair value of the collateral, less estimated costs to sell. Collateral-dependent impaired loans, bank premises held for sale, and foreclosed assets are classified within Level 3 of the fair value hierarchy. The Company considers the appraisal or a similar evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals or a similar evaluation of the collateral underlying collateral-dependent loans and foreclosed assets are obtained at the time a loan is first considered impaired or a loan is transferred to foreclosed assets. Appraisals or a similar evaluation of bank premises held for sale are obtained when first classified as held for sale. Appraisals or similar evaluations are obtained subsequently as deemed necessary by management but at least annually on foreclosed assets and bank premises held for sale. Appraisals are reviewed for accuracy and consistency by management. Appraisals are performed by individuals selected from the list of approved appraisers maintained by management. The appraised values are reduced by estimated costs to sell. These discounts and estimates are developed by management by comparison to historical results. The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands): June 30, 2020 Fair Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 12,204 Appraisal of collateral Appraisal adjustments Not meaningful Bank premises held for sale 121 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 4,450 Appraisal Appraisal adjustments 7% (7%) December 31, 2019 Fair Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 15,811 Appraisal of collateral Appraisal adjustments Not meaningful Bank premises held for sale 121 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 5,099 Appraisal Appraisal adjustments 7% (7%) Other Fair Value Methods The following methods and assumptions were used by the Company in estimating fair value disclosures of its other financial instruments. There were no changes in the methods and significant assumptions used to estimate the fair value of these financial instruments. Cash and Cash Equivalents The carrying amounts of these financial instruments approximate their fair values. Interest-bearing Time Deposits with Banks The carrying values of interest-bearing time deposits with banks approximate their fair values. Restricted Stock The carrying amount of FHLB stock approximates fair value based on the redemption provisions of the FHLB. Loans The fair value estimation process for the loan portfolio uses an exit price concept and reflects discounts the Company believes are consistent with discounts in the market place. Fair values are estimated for portfolios of loans with similar characteristics. Loans are segregated by type such as commercial and industrial, agricultural and farmland, commercial real estate - owner occupied, commercial real estate - non-owner occupied, multi-family, construction and land development, one-to-four family residential, and municipal, consumer, and other. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for similar maturities. The fair value analysis also includes other assumptions to estimate fair value, intended to approximate those a market participant would use in an orderly transaction, with adjustments for discount rates, interest rates, liquidity, and credit spreads, as appropriate. Investments in Unconsolidated Subsidiaries The fair values of the Company’s investments in unconsolidated subsidiaries are presumed to approximate carrying amounts. Time Deposits Fair values of certificates of deposit with stated maturities have been estimated using the present value of estimated future cash flows discounted at rates currently offered for similar instruments. Time deposits also include public funds time deposits. Securities Sold Under Agreements to Repurchase The fair values of repurchase agreements with variable interest rates are presumed to approximate their recorded carrying amounts. Subordinated Debentures The fair values of subordinated debentures are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions. Accrued Interest The carrying amounts of accrued interest approximate fair value. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair values have been estimated using data which management considered the best available and estimation methodologies deemed suitable for the pertinent category of financial instrument. The following table provides summary information on the carrying amounts and estimated fair values of the Company’s financial instruments: Fair Value June 30, 2020 December 31, 2019 Hierarchy Carrying Estimated Carrying Estimated Level Amount Fair Value Amount Fair Value (dollars in thousands) Financial assets: Cash and cash equivalents Level 1 $ 314,365 $ 314,365 $ 283,971 $ 283,971 Interest-bearing time deposits with banks Level 1 — — 248 248 Debt securities held-to-maturity Level 2 73,823 78,317 88,477 90,529 Restricted stock Level 3 2,498 2,498 2,425 2,425 Loans, net Level 3 2,246,072 2,259,411 2,141,527 2,181,103 Investments in unconsolidated subsidiaries Level 3 1,165 1,165 1,165 1,165 Accrued interest receivable Level 2 12,661 12,661 13,951 13,951 Financial liabilities: Time deposits Level 3 310,818 312,873 356,408 355,340 Securities sold under agreements to repurchase Level 2 51,354 51,354 44,433 44,433 Subordinated debentures Level 3 37,616 31,507 37,583 31,959 Accrued interest payable Level 2 821 821 1,132 1,132 The Company estimated the fair value of lending related commitments as described in Note 17 to be immaterial based on limited interest rate exposure due to their variable nature, short-term commitment periods and termination clauses provided in the agreements.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2020
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 17 – COMMITMENTS AND CONTINGENCIES Financial Instruments The Banks are party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Banks’ exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Banks use the same credit policies in making commitments and conditional obligations as they do for on-balance sheet instruments. Such commitments and conditional obligations were as follows: Contractual Amount June 30, December 31, 2020 2019 (dollars in thousands) Commitments to extend credit $ 536,489 $ 542,705 Standby letters of credit 9,649 8,991 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Banks evaluate each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, by the Banks upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies, but may include real estate, accounts receivable, inventory, property, plant, and equipment, and income-producing properties. Standby letters of credit are conditional commitments issued by the Banks to guarantee the performance of a customer to a third party. Those standby letters of credit are primarily issued to support extensions of credit. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. The Banks secure the standby letters of credit with the same collateral used to secure the related loan. Legal Contingencies Various legal claims arise from time to time in the normal course of business which, in the opinion of management, will have no material effect on the Company’s consolidated financial statements.

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2020
ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation HBT Financial, Inc. (the Company) is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company (Heartland Bank) and State Bank of Lincoln. Heartland Bank and State Bank of Lincoln are collectively referred to as “the Banks”. The Banks provide a comprehensive suite of business, commercial, wealth management and retail banking products and services to individuals, businesses, and municipal entities throughout Central and Northeastern Illinois. The unaudited consolidated financial statements, including the notes thereto, have been prepared in accordance with generally accepted accounting principles (GAAP) interim reporting requirements. Certain information in footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission. These interim unaudited consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 27, 2020. The unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. The Company qualifies as an "emerging growth company" as defined by the Jumpstart Our Business Startups Act (JOBS Act). The JOBS Act permits emerging growth companies an extended transition period for complying with new or revised accounting standards affecting public companies. The Company has elected to use the extended transition period until the Company is no longer an emerging growth company or until the Company chooses to affirmatively and irrevocably opt out of the extended transition period. As a result, the Company’s financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public companies.
Use of Estimates	Use of Estimates The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses and income taxes.
Income Taxes	Income Taxes Through October 10, 2019, the Company, with the consent of its then current stockholders, elected to be taxed under sections of federal and state income tax law as an "S Corporation" which provides that, in lieu of Company income taxes, except for state replacement taxes, the stockholders separately account for their pro rata shares of the Company’s items of income, deductions, losses and credits. As a result of this election, no income taxes, other than state replacement taxes, have been recognized in the accompanying consolidated financial statements. No provision has been made for any amounts which were advanced or paid as dividends to the stockholders to assist them in paying their personal taxes on the income from the Company. Effective October 11, 2019, the Company voluntarily revoked its S Corporation status and became a taxable entity (C Corporation). As such, any periods prior to October 11, 2019 only reflect an effective state replacement tax rate. The Company files consolidated federal and state income tax returns. The Company is no longer subject to federal income tax examinations for years prior to 2017 or state income tax examinations for years prior to 2016.
Unaudited Pro Forma Income Statement Information	Unaudited Pro Forma Income Statement Information The unaudited pro forma C Corp equivalent income tax expense information gives effect to the income tax expense had the Company been a C Corporation during the three and six months ended June 30, 2019. The unaudited pro forma C Corp equivalent net income information, therefore, includes an adjustment for income tax expense as if the Company had been a C Corporation during the three and six months ended June 30, 2019. The unaudited pro forma basic and diluted earnings per share information is computed using the unaudited pro forma C Corp equivalent net income and weighted average shares of common stock outstanding. There were no dilutive instruments outstanding during 2019, therefore, the unaudited pro forma C Corp equivalent basic and diluted earnings per share amounts are the same.
Segment Reporting	Segment Reporting The Company’s operations consist of one reportable segment called community banking. While the Company’s management monitors both bank subsidiaries’ operations and profitability separately, these subsidiaries have been aggregated into one reportable segment due to the similarities in products and services, customer base, operations, profitability measures, and economic characteristics.
Goodwill	Goodwill Goodwill represents the excess of the original cost over the fair value of assets acquired and liabilities assumed. Goodwill is not amortized but instead is subject to an annual impairment evaluation. The Company has selected December 31 as the date to perform the annual impairment test, and at December 31, 2019, the Company’s evaluation of goodwill indicated that goodwill was not impaired. Due to the economic weakness resulting from the COVID-19 pandemic, the Company completed an evaluation of goodwill as of March 31, 2020 which indicated that goodwill was not impaired as of March 31, 2020. Further goodwill impairment evaluations, which may result in goodwill impairment, may be necessary if events or circumstance changes would more likely than not reduce the fair value of a reporting unit below its carrying amount.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or stockholders’ equity.
Subsequent Events	Subsequent Events In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential of recognition or disclosure through the date the financial statements were issued.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016‑13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016‑13 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 debt securities available-for-sale and purchased financial assets with credit deterioration. ASU 2016‑13 is effective for years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted for years beginning after December 31, 2018, including interim periods within those years. The Company is currently evaluating the effect that this standard will have on the consolidated results of operations and financial position. In January 2017, the FASB issued ASU 2017‑04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This ASU simplifies measurement of goodwill and eliminates Step 2 from the goodwill impairment test. Under the ASU, a company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for annual or any interim goodwill impairment tests in years beginning after December 15, 2022, including interim periods within those years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position.

SECURITIES (Tables)

SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2020
SECURITIES
Summary of carrying balances of securities	June 30, December 31, 2020 2019 (dollars in thousands) Debt securities available-for-sale $ 701,353 $ 592,404 Debt securities held-to-maturity 73,823 88,477 Equity securities: Readily determinable fair value 3,263 3,241 No readily determinable fair value 1,552 1,148 Total securities $ 779,991 $ 685,270
Schedule of amortized cost and fair values of debt securities, with gross unrealized gains and losses.	June 30, 2020 Amortized Gross Gross Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ 75,881 $ 3,061 $ (7) $ 78,935 Municipal 191,453 6,885 (28) 198,310 Mortgage-backed: Agency residential 211,577 5,393 (101) 216,869 Agency commercial 133,149 5,022 (22) 138,149 Corporate 67,204 1,962 (76) 69,090 Total available-for-sale 679,264 22,323 (234) 701,353 Held-to-maturity: Municipal 28,528 1,507 — 30,035 Mortgage-backed: Agency residential 16,516 567 — 17,083 Agency commercial 28,779 2,420 — 31,199 Total held-to-maturity 73,823 4,494 — 78,317 Total debt securities $ 753,087 $ 26,817 $ (234) $ 779,670 December 31, 2019 Amortized Gross Gross Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ 49,113 $ 529 $ (27) $ 49,615 Municipal 131,241 2,503 (6) 133,738 Mortgage-backed: Agency residential 198,184 2,780 (286) 200,678 Agency commercial 133,730 1,516 (292) 134,954 Corporate 72,239 1,180 — 73,419 Total available-for-sale 584,507 8,508 (611) 592,404 Held-to-maturity: Municipal 45,239 1,340 — 46,579 Mortgage-backed: Agency residential 19,072 161 (170) 19,063 Agency commercial 24,166 775 (54) 24,887 Total held-to-maturity 88,477 2,276 (224) 90,529 Total debt securities $ 672,984 $ 10,784 $ (835) $ 682,933
Schedule of amortized cost and fair value of securities by contractual maturity	Available-for-Sale Held-to-Maturity Amortized Fair Value Amortized Fair Value (dollars in thousands) Due in 1 year or less $ 32,518 $ 32,748 $ 748 $ 754 Due after 1 year through 5 years 92,615 95,593 14,963 15,733 Due after 5 years through 10 years 151,731 158,201 11,926 12,620 Due after 10 years 57,674 59,793 891 928 Mortgage-backed: Agency residential 211,577 216,869 16,516 17,083 Agency commercial 133,149 138,149 28,779 31,199 Total $ 679,264 $ 701,353 $ 73,823 $ 78,317
Schedule of gains (losses) on securities	Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (dollars in thousands) Net realized gains (losses) on sales $ — $ — $ — $ — Net unrealized gains (losses) on equities: Readily determinable fair value 57 36 5 115 No readily determinable fair value — — — — Gains (losses) on securities $ 57 $ 36 $ 5 $ 115
Schedule of gross unrealized losses and fair value of investments	Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total June 30, 2020 Unrealized Fair Value Unrealized Fair Value Unrealized Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ (7) $ 3,605 $ — $ — $ (7) $ 3,605 Municipal (28) 4,989 — — (28) 4,989 Mortgage-backed: Agency residential (77) 15,955 (24) 7,194 (101) 23,149 Agency commercial — — (22) 6,038 (22) 6,038 Corporate (76) 9,924 — — (76) 9,924 Total available-for-sale (188) 34,473 (46) 13,232 (234) 47,705 Total debt securities $ (188) $ 34,473 $ (46) $ 13,232 $ (234) $ 47,705 Investments in a Continuous Unrealized Loss Position Less than 12 Months 12 Months or More Total December 31, 2019 Unrealized Fair Value Unrealized Fair Value Unrealized Fair Value Available-for-sale: (dollars in thousands) U.S. government agency $ (26) $ 18,865 $ (1) $ 1,998 $ (27) $ 20,863 Municipal (6) 894 — — (6) 894 Mortgage-backed: Agency residential (108) 25,563 (178) 27,296 (286) 52,859 Agency commercial (100) 20,056 (192) 15,704 (292) 35,760 Total available-for-sale (240) 65,378 (371) 44,998 (611) 110,376 Held-to-maturity: Mortgage-backed: Agency residential (30) 2,516 (140) 9,002 (170) 11,518 Agency commercial (47) 7,016 (7) 599 (54) 7,615 Total held-to-maturity (77) 9,532 (147) 9,601 (224) 19,133 Total debt securities $ (317) $ 74,910 $ (518) $ 54,599 $ (835) $ 129,509

LOANS AND THE ALLOWANCE FOR L_2

LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Tables)	6 Months Ended
	Jun. 30, 2020
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Summary of Loans	June 30, December 31, 2020 2019 (dollars in thousands) Commercial and industrial $ 408,230 $ 307,175 Agricultural and farmland 239,101 207,776 Commercial real estate - owner occupied 228,506 231,162 Commercial real estate - non-owner occupied 535,339 579,757 Multi-family 186,440 179,073 Construction and land development 247,640 224,887 One-to-four family residential 308,133 313,580 Municipal, consumer, and other 122,406 120,416 Loans, before allowance for loan losses 2,275,795 2,163,826 Allowance for loan losses (29,723) (22,299) Loans, net of allowance for loan losses $ 2,246,072 $ 2,141,527 Paycheck Protection Program (PPP) Loans (included above) Commercial and industrial $ 166,868 $ — Agricultural and farmland 4,027 — Municipal, consumer, and other 7,063 — Total PPP loans $ 177,958 $ —
Schedule of activity in allowance for loan losses	Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and Three Months Ended June 30, 2020 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Allowance for loan losses: (dollars in thousands) Balance, March 31, 2020 $ 4,224 $ 2,993 $ 2,122 $ 4,432 $ 1,474 $ 3,223 $ 3,284 $ 4,335 $ 26,087 Provision for loan losses 125 (103) 1,135 2,275 107 135 (317) 216 3,573 Charge-offs — — — — — — (8) (152) (160) Recoveries 7 — — 60 — 8 51 97 223 Balance, June 30, 2020 $ 4,356 $ 2,890 $ 3,257 $ 6,767 $ 1,581 $ 3,366 $ 3,010 $ 4,496 $ 29,723 Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and Three Months Ended June 30, 2019 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Allowance for loan losses: (dollars in thousands) Balance, March 31, 2019 $ 3,762 $ 3,248 $ 2,353 $ 2,722 $ 972 $ 3,897 $ 3,067 $ 992 $ 21,013 Provision for loan losses 1,393 (356) 233 (7) 181 (587) 1,022 (73) 1,806 Charge-offs (27) (30) (101) — — (9) (602) (197) (966) Recoveries 59 — 2 6 — 422 82 118 689 Balance, June 30, 2019 $ 5,187 $ 2,862 $ 2,487 $ 2,721 $ 1,153 $ 3,723 $ 3,569 $ 840 $ 22,542 Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and Six Months Ended June 30, 2020 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Allowance for loan losses: (dollars in thousands) Balance, December 31, 2019 $ 4,441 $ 2,766 $ 1,779 $ 3,663 $ 1,024 $ 2,977 $ 2,540 $ 3,109 $ 22,299 Provision for loan losses 663 151 1,038 3,095 557 372 460 1,592 7,928 Charge-offs (809) (27) — (56) — (1) (112) (376) (1,381) Recoveries 61 — 440 65 — 18 122 171 877 Balance, June 30, 2020 $ 4,356 $ 2,890 $ 3,257 $ 6,767 $ 1,581 $ 3,366 $ 3,010 $ 4,496 $ 29,723 Commercial Commercial Commercial Agricultural Real Estate Real Estate Consumer and and Owner Non-owner Construction Residential and Six Months Ended June 30, 2019 Industrial Farmland Occupied Occupied Multi-Family and Land Real Estate Other Total Allowance for loan losses: (dollars in thousands) Balance, December 31, 2018 $ 3,748 $ 2,650 $ 2,506 $ 2,644 $ 912 $ 4,176 $ 2,782 $ 1,091 $ 20,509 Provision for loan losses 1,615 242 126 67 241 (877) 1,233 (65) 2,582 Charge-offs (283) (30) (166) — — (9) (639) (372) (1,499) Recoveries 107 — 21 10 — 433 193 186 950 Balance, June 30, 2019 $ 5,187 $ 2,862 $ 2,487 $ 2,721 $ 1,153 $ 3,723 $ 3,569 $ 840 $ 22,542 Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and June 30, 2020 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Loan balances: (dollars in thousands) Collectively evaluated for impairment $ 398,730 $ 220,915 $ 207,606 $ 500,354 $ 185,152 $ 241,694 $ 286,969 $ 108,677 $ 2,150,097 Individually evaluated for impairment 7,704 17,216 12,737 20,095 — 2,661 11,344 13,651 85,408 Acquired with deteriorated credit quality 1,796 970 8,163 14,890 1,288 3,285 9,820 78 40,290 Total $ 408,230 $ 239,101 $ 228,506 $ 535,339 $ 186,440 $ 247,640 $ 308,133 $ 122,406 $ 2,275,795 Allowance for loan losses: Collectively evaluated for impairment $ 2,514 $ 2,854 $ 2,527 $ 6,152 $ 1,571 $ 2,975 $ 2,306 $ 1,005 $ 21,904 Individually evaluated for impairment 1,732 34 437 91 — 259 668 3,490 6,711 Acquired with deteriorated credit quality 110 2 293 524 10 132 36 1 1,108 Total $ 4,356 $ 2,890 $ 3,257 $ 6,767 $ 1,581 $ 3,366 $ 3,010 $ 4,496 $ 29,723 Commercial Commercial Municipal, Commercial Agricultural Real Estate Real Estate Construction One-to-four Consumer, and and Owner Non-owner and Land Family and December 31, 2019 Industrial Farmland Occupied Occupied Multi-Family Development Residential Other Total Loan balances: (dollars in thousands) Collectively evaluated for impairment $ 294,006 $ 192,722 $ 211,744 $ 561,277 $ 176,273 $ 217,708 $ 291,624 $ 106,448 $ 2,051,802 Individually evaluated for impairment 10,733 13,966 10,927 3,398 1,324 3,782 11,349 13,872 69,351 Acquired with deteriorated credit quality 2,436 1,088 8,491 15,082 1,476 3,397 10,607 96 42,673 Total $ 307,175 $ 207,776 $ 231,162 $ 579,757 $ 179,073 $ 224,887 $ 313,580 $ 120,416 $ 2,163,826 Allowance for loan losses: Collectively evaluated for impairment $ 1,926 $ 2,576 $ 1,486 $ 3,591 $ 1,019 $ 2,283 $ 1,684 $ 931 $ 15,496 Individually evaluated for impairment 2,170 105 270 70 — 567 822 2,176 6,180 Acquired with deteriorated credit quality 345 85 23 2 5 127 34 2 623 Total $ 4,441 $ 2,766 $ 1,779 $ 3,663 $ 1,024 $ 2,977 $ 2,540 $ 3,109 $ 22,299
Schedule of loans individually evaluated for impairment by category	The following tables present loans individually evaluated for impairment by category of loans as of June 30, 2020 and December 31, 2019: Unpaid Principal Recorded Related June 30, 2020 Balance Investment Allowance With an allowance recorded: (dollars in thousands) Commercial and industrial $ 3,052 $ 3,052 $ 1,732 Agricultural and farmland 174 174 34 Commercial real estate - owner occupied 1,303 1,303 437 Commercial real estate - non-owner occupied 166 166 91 Multi-family — — — Construction and land development 2,564 2,563 259 One-to-four family residential 2,821 2,803 668 Municipal, consumer, and other 8,881 8,854 3,490 Total $ 18,961 $ 18,915 $ 6,711 With no related allowance: Commercial and industrial $ 4,656 $ 4,652 $ — Agricultural and farmland 17,040 17,042 — Commercial real estate - owner occupied 11,436 11,434 — Commercial real estate - non-owner occupied 19,973 19,929 — Multi-family — — — Construction and land development 100 98 — One-to-four family residential 8,593 8,541 — Municipal, consumer, and other 4,809 4,797 — Total $ 66,607 $ 66,493 $ — Total Commercial and industrial $ 7,708 $ 7,704 $ 1,732 Agricultural and farmland 17,214 17,216 34 Commercial real estate - owner occupied 12,739 12,737 437 Commercial real estate - non-owner occupied 20,139 20,095 91 Multi-family — — — Construction and land development 2,664 2,661 259 One-to-four family residential 11,414 11,344 668 Municipal, consumer, and other 13,690 13,651 3,490 Total $ 85,568 $ 85,408 $ 6,711 Unpaid Principal Recorded Related December 31, 2019 Balance Investment Allowance With an allowance recorded: (dollars in thousands) Commercial and industrial $ 4,292 $ 4,292 $ 2,170 Agricultural and farmland 590 590 105 Commercial real estate - owner occupied 830 830 270 Commercial real estate - non-owner occupied 99 99 70 Multi-family — — — Construction and land development 3,679 3,679 567 One-to-four family residential 3,401 3,390 822 Municipal, consumer, and other 9,138 9,111 2,176 Total $ 22,029 $ 21,991 $ 6,180 With no related allowance: Commercial and industrial $ 6,438 $ 6,441 $ — Agricultural and farmland 13,369 13,376 — Commercial real estate - owner occupied 10,089 10,097 — Commercial real estate - non-owner occupied 3,297 3,299 — Multi-family 1,328 1,324 — Construction and land development 104 103 — One-to-four family residential 7,986 7,959 — Municipal, consumer, and other 4,775 4,761 — Total $ 47,386 $ 47,360 $ — Total Commercial and industrial $ 10,730 $ 10,733 $ 2,170 Agricultural and farmland 13,959 13,966 105 Commercial real estate - owner occupied 10,919 10,927 270 Commercial real estate - non-owner occupied 3,396 3,398 70 Multi-family 1,328 1,324 — Construction and land development 3,783 3,782 567 One-to-four family residential 11,387 11,349 822 Municipal, consumer, and other 13,913 13,872 2,176 Total $ 69,415 $ 69,351 $ 6,180 The following table presents the average recorded investment and interest income recognized for loans individually evaluated for impairment by category of loans during the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With an allowance recorded: (dollars in thousands) Commercial and industrial $ 3,126 $ 39 $ 5,864 $ 54 Agricultural and farmland 177 — 997 — Commercial real estate - owner occupied 1,312 27 3,415 10 Commercial real estate - non-owner occupied 167 3 102 — Multi-family — — 1,349 — Construction and land development 2,573 25 2,882 45 One-to-four family residential 2,868 31 3,818 27 Municipal, consumer, and other 8,911 105 224 2 Total $ 19,134 $ 230 $ 18,651 $ 138 With no related allowance: Commercial and industrial $ 5,095 $ 94 $ 10,490 $ 103 Agricultural and farmland 16,853 195 20,280 228 Commercial real estate - owner occupied 11,899 120 14,427 197 Commercial real estate - non-owner occupied 20,067 65 3,938 — Multi-family — — 2,400 81 Construction and land development 101 — 107 1 One-to-four family residential 8,666 141 10,406 51 Municipal, consumer, and other 4,835 1 17,369 109 Total $ 67,516 $ 616 $ 79,417 $ 770 Total Commercial and industrial $ 8,221 $ 133 $ 16,354 $ 157 Agricultural and farmland 17,030 195 21,277 228 Commercial real estate - owner occupied 13,211 147 17,842 207 Commercial real estate - non-owner occupied 20,234 68 4,040 — Multi-family — — 3,749 81 Construction and land development 2,674 25 2,989 46 One-to-four family residential 11,534 172 14,224 78 Municipal, consumer, and other 13,746 106 17,593 111 Total $ 86,650 $ 846 $ 98,068 $ 908 Six Months Ended June 30, 2020 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With an allowance recorded: (dollars in thousands) Commercial and industrial $ 3,306 $ 88 $ 5,940 $ 89 Agricultural and farmland 374 4 877 7 Commercial real estate - owner occupied 1,070 38 3,434 79 Commercial real estate - non-owner occupied 133 5 102 — Multi-family — — 1,354 — Construction and land development 2,819 66 2,887 89 One-to-four family residential 3,065 60 3,832 49 Municipal, consumer, and other 10,699 188 236 4 Total $ 21,466 $ 449 $ 18,662 $ 317 With no related allowance: Commercial and industrial $ 5,518 $ 152 $ 10,461 $ 196 Agricultural and farmland 14,687 356 20,417 342 Commercial real estate - owner occupied 11,166 251 14,656 332 Commercial real estate - non-owner occupied 11,704 106 3,958 54 Multi-family — — 2,431 81 Construction and land development 213 2 108 2 One-to-four family residential 8,505 203 10,488 120 Municipal, consumer, and other 3,102 57 17,417 110 Total $ 54,895 $ 1,127 $ 79,936 $ 1,237 Total Commercial and industrial $ 8,824 $ 240 $ 16,401 $ 285 Agricultural and farmland 15,061 360 21,294 349 Commercial real estate - owner occupied 12,236 289 18,090 411 Commercial real estate - non-owner occupied 11,837 111 4,060 54 Multi-family — — 3,785 81 Construction and land development 3,032 68 2,995 91 One-to-four family residential 11,570 263 14,320 169 Municipal, consumer, and other 13,801 245 17,653 114 Total $ 76,361 $ 1,576 $ 98,598 $ 1,554
Schedule of recorded investment on past due basis	Accruing Interest 30 - 89 Days 90+ Days Total June 30, 2020 Current Past Due Past Due Nonaccrual Loans (dollars in thousands) Commercial and industrial $ 404,768 $ 109 $ — $ 3,353 $ 408,230 Agricultural and farmland 233,928 242 — 4,931 239,101 Commercial real estate - owner occupied 227,345 360 — 801 228,506 Commercial real estate - non-owner occupied 535,127 — — 212 535,339 Multi-family 186,440 — — — 186,440 Construction and land development 247,472 — — 168 247,640 One-to-four family residential 302,665 998 149 4,321 308,133 Municipal, consumer, and other 122,092 148 7 159 122,406 Total $ 2,259,837 $ 1,857 $ 156 $ 13,945 $ 2,275,795 Accruing Interest 30 - 89 Days 90+ Days Total December 31, 2019 Current Past Due Past Due Nonaccrual Loans (dollars in thousands) Commercial and industrial $ 301,975 $ 558 $ — $ 4,642 $ 307,175 Agricultural and farmland 201,519 — — 6,257 207,776 Commercial real estate - owner occupied 228,218 941 — 2,003 231,162 Commercial real estate - non-owner occupied 579,626 131 — — 579,757 Multi-family 177,696 — — 1,377 179,073 Construction and land development 224,716 140 — 31 224,887 One-to-four family residential 307,712 1,329 75 4,464 313,580 Municipal, consumer, and other 119,898 247 26 245 120,416 Total $ 2,141,360 $ 3,346 $ 101 $ 19,019 $ 2,163,826
Schedule of loans by category risk ratings	June 30, 2020 Pass Pass-Watch Substandard Doubtful Total (dollars in thousands) Commercial and industrial $ 376,348 $ 22,442 $ 9,440 $ — $ 408,230 Agricultural and farmland 206,481 14,638 17,982 — 239,101 Commercial real estate - owner occupied 192,278 23,058 13,170 — 228,506 Commercial real estate - non-owner occupied 455,660 56,607 23,072 — 535,339 Multi-family 175,543 10,897 — — 186,440 Construction and land development 234,415 10,159 3,066 — 247,640 One-to-four family residential 283,601 12,073 12,459 — 308,133 Municipal, consumer, and other 108,508 256 13,642 — 122,406 Total $ 2,032,834 $ 150,130 $ 92,831 $ — $ 2,275,795 December 31, 2019 Pass Pass-Watch Substandard Doubtful Total (dollars in thousands) Commercial and industrial $ 267,645 $ 27,114 $ 12,416 $ — $ 307,175 Agricultural and farmland 180,735 12,267 14,774 — 207,776 Commercial real estate - owner occupied 198,710 21,745 10,707 — 231,162 Commercial real estate - non-owner occupied 531,694 46,092 1,971 — 579,757 Multi-family 175,807 1,771 1,495 — 179,073 Construction and land development 217,120 3,582 4,185 — 224,887 One-to-four family residential 287,036 13,546 12,998 — 313,580 Municipal, consumer, and other 106,063 479 13,874 — 120,416 Total $ 1,964,810 $ 126,596 $ 72,420 $ — $ 2,163,826
Schedule of financial effect of troubled debt restructurings	Charge-offs Recorded Investment and Specific Three Months Ended June 30, 2019 Number Pre-Modification Post-Modification Reserves (dollars in thousands) Commercial and industrial 3 $ 516 $ 516 $ — Agricultural and farmland 1 107 107 — Commercial real estate - owner occupied 1 170 170 — Total 5 $ 793 $ 793 $ — Charge-offs Recorded Investment and Specific Six Months Ended June 30, 2019 Number Pre-Modification Post-Modification Reserves (dollars in thousands) Commercial and industrial 3 $ 516 $ 516 $ — Agricultural and farmland 2 392 392 — Commercial real estate - owner occupied 1 170 170 — Total 6 $ 1,078 $ 1,078 $ —
Schedule of changes in the accretable yield for loans acquired with deteriorated credit quality	Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (dollars in thousands) Beginning balance $ 1,510 $ 1,710 $ 1,662 $ 2,101 Reclassification from non-accretable difference 38 271 46 407 Accretion income (170) (348) (330) (875) Ending balance $ 1,378 $ 1,633 $ 1,378 $ 1,633

LOAN SERVICING (Tables)

LOAN SERVICING (Tables)	6 Months Ended
	Jun. 30, 2020
LOAN SERVICING
Schedule of activity in mortgage servicing rights	Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (dollars in thousands) Beginning balance $ 6,347 $ 9,916 $ 8,518 $ 10,918 Capitalized servicing rights 560 216 774 376 Fair value adjustment: Attributable to payments and principal reductions (791) (438) (1,194) (744) Attributable to changes in valuation inputs and assumptions (277) (898) (2,259) (1,754) Total fair value adjustment (1,068) (1,336) (3,453) (2,498) Ending balance $ 5,839 $ 8,796 $ 5,839 $ 8,796

FORECLOSED ASSETS (Tables)

FORECLOSED ASSETS (Tables)	6 Months Ended
	Jun. 30, 2020
FORECLOSED ASSETS
Schedule of foreclosed assets activity	Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (dollars in thousands) Beginning balance $ 4,469 $ 10,151 $ 5,099 $ 9,559 Transfers from loans 308 353 327 1,761 Capitalized improvements 6 — 6 — Proceeds from sales (324) (458) (1,001) (969) Sales through loan origination (67) (91) (67) (360) Net gain (loss) on sales 69 16 144 105 Direct write-downs (11) (264) (58) (389) Ending balance $ 4,450 $ 9,707 $ 4,450 $ 9,707
Schedule of gains (losses) on foreclosed assets	Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (dollars in thousands) Direct write-downs $ (11) $ (264) $ (58) $ (389) Net gain (loss) on sales 69 16 144 105 Guarantee reimbursements — 42 7 61 Gain on settlement — 375 — 375 Gains (losses) on foreclosed assets $ 58 $ 169 $ 93 $ 152

DEPOSITS (Tables)

DEPOSITS (Tables)	6 Months Ended
	Jun. 30, 2020
DEPOSITS
Schedule of Company’s interest-bearing deposits	June 30, 2020 December 31, 2019 (dollars in thousands) Noninterest-bearing deposits $ 856,030 $ 689,116 Interest-bearing deposits: Interest-bearing demand 880,007 814,639 Money market 480,497 477,765 Savings 487,761 438,927 Time 310,818 356,408 Total interest-bearing deposits 2,159,083 2,087,739 Total deposits $ 3,015,113 $ 2,776,855
Schedule of interest expense on deposits	Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (dollars in thousands) Interest-bearing demand $ 162 $ 411 $ 413 $ 828 Money market 118 489 512 859 Savings 50 69 120 137 Time 712 1,142 1,592 2,270 Total interest expense on deposits $ 1,042 $ 2,111 $ 2,637 $ 4,094

SUBORDINATED DEBENTURES (Tables

SUBORDINATED DEBENTURES (Tables)	6 Months Ended
	Jun. 30, 2020
SUBORDINATED DEBENTURES
Schedule of carrying value of subordinated debentures	June 30, 2020 December 31, 2019 (dollars in thousands) Heartland Bancorp, Inc. Capital Trust B $ 10,310 $ 10,310 Heartland Bancorp, Inc. Capital Trust C 10,310 10,310 Heartland Bancorp, Inc. Capital Trust D 5,155 5,155 FFBI Capital Trust I 7,217 7,217 National Bancorp Statutory Trust I 4,624 4,591 Total $ 37,616 $ 37,583
Schedule of interest rates and maturities of the subordinated debentures	Interest Rate at Variable June 30, December 31, Maturity Interest Rate 2020 2019 Date Heartland Bancorp, Inc. Capital Trust B LIBOR plus 2.75 % 3.97 % 4.74 % April 6, 2034 Heartland Bancorp, Inc. Capital Trust C LIBOR plus 1.53 1.84 3.42 June 15, 2037 Heartland Bancorp, Inc. Capital Trust D LIBOR plus 1.35 1.66 3.24 September 15, 2037 FFBI Capital Trust I LIBOR plus 2.80 4.02 4.79 April 6, 2034 National Bancorp Statutory Trust I LIBOR plus 2.90 3.21 4.79 December 31, 2037

DERIVATIVE FINANCIAL INSTRUME_2

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2020
DERIVATIVE FINANCIAL INSTRUMENTS
Summary of fair values of Company’s derivative instrument assets and liabilities related to interest rate swap contracts	June 30, 2020 December 31, 2019 Notional Fair Notional Fair Amount Value Amount Value Designated as cash flow hedges: (dollars in thousands) Fair value recorded in other liabilities $ 17,000 $ (1,674) $ 17,000 $ (676)
Schedule of the effect of interest rate contracts designated as cash flow hedges on the consolidated statements of income	Location of gross gain (loss) reclassified Amounts of gross gain (loss) from accumulated other reclassified from accumulated comprehensive income to income other comprehensive income Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Designated as cash flow hedges: (dollars in thousands) Taxable loan interest income $ 32 $ 20 $ 64 $ 50 Subordinated debentures interest expense (71) 2 (105) 2 Total $ (39) $ 22 $ (41) $ 52
Summary of interest rate swap agreements not designated as hedging instruments	June 30, 2020 December 31, 2019 Notional Fair Notional Fair Amount Value Amount Value Not designated as hedging instruments: (dollars in thousands) Fair value recorded in other assets: Interest rate swaps with commercial borrower counterparties $ 142,062 $ 22,965 $ 114,140 $ 8,532 Interest rate swaps with financial institution counterparty — — 24,216 110 Total fair value recorded in other assets $ 142,062 $ 22,965 $ 138,356 $ 8,642 Fair value recorded in other liabilities: Interest rate swaps with commercial borrower counterparties $ — $ — $ 24,216 $ (110) Interest rate swaps with financial institution counterparty 142,062 (22,965) 114,140 (8,532) Total fair value recorded in other liabilities $ 142,062 $ (22,965) $ 138,356 $ (8,642)
Summary of the effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income	Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Not designated as hedging instruments: (dollars in thousands) Gross gains $ 1,610 $ 4,876 $ 15,181 $ 6,045 Gross losses (1,610) (4,839) (15,181) (6,008) Net gains (losses) $ — $ 37 $ — $ 37

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	6 Months Ended
	Jun. 30, 2020
ACCUMULATED OTHER COMPREHENSIVE INCOME
Schedule of the activity and accumulated balances for components of other comprehensive income (loss)	Unrealized Gains (Losses) on Debt Securities Available-for-Sale Held-to-Maturity Derivatives Total (dollars in thousands) Three Months Ended June 30, 2020 Balance, March 31, 2020 $ 14,095 $ (138) $ (1,388) $ 12,569 Other comprehensive income (loss) before reclassifications 6,590 — (133) 6,457 Reclassifications — 6 39 45 Other comprehensive income (loss), before tax 6,590 6 (94) 6,502 Income tax expense (benefit) 1,879 1 (20) 1,860 Other comprehensive income (loss), after tax 4,711 5 (74) 4,642 Balance, June 30, 2020 $ 18,806 $ (133) $ (1,462) $ 17,211 Three Months Ended June 30, 2019 Balance, March 31, 2019 $ 1,095 $ 40 $ (123) $ 1,012 Other comprehensive income (loss) before reclassifications 6,968 — (445) 6,523 Reclassifications — (77) (22) (99) Other comprehensive loss 6,968 (77) (467) 6,424 Balance, June 30, 2019 $ 8,063 $ (37) $ (590) $ 7,436 Six Months Ended June 30, 2020 Balance, December 31, 2019 $ 8,659 $ (131) $ (696) $ 7,832 Other comprehensive income (loss) before reclassifications 14,192 — (1,103) 13,089 Reclassifications — (3) 41 38 Other comprehensive income (loss), before tax 14,192 (3) (1,062) 13,127 Income tax expense (benefit) 4,045 (1) (296) 3,748 Other comprehensive income (loss), after tax 10,147 (2) (766) 9,379 Balance, June 30, 2020 $ 18,806 $ (133) $ (1,462) $ 17,211 Six Months Ended June 30, 2019 Balance, December 31, 2018 $ (4,561) $ 122 $ 151 $ (4,288) Other comprehensive income (loss) before reclassifications 12,624 — (689) 11,935 Reclassifications — (159) (52) (211) Other comprehensive loss 12,624 (159) (741) 11,724 Balance, June 30, 2019 $ 8,063 $ (37) $ (590) $ 7,436

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2020
INCOME TAXES
Schedule of allocation of federal and state income taxes between current and deferred portions	Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (dollars in thousands) Current Federal $ 977 $ — $ 2,698 $ — State 637 305 1,625 520 Total current 1,614 305 4,323 520 Deferred Federal 580 — 123 — State 283 — 62 — Total deferred 863 — 185 — Income tax expense $ 2,477 $ 305 $ 4,508 $ 520
Schedule of effective income tax rate reconciliation	Three Months Ended June 30, 2020 2019 Amount Percentage Amount Percentage (dollars in thousands) Federal income tax, at statutory rate $ 2,078 21.0 % $ — — % Increase (decrease) resulting from: Federally tax exempt interest income (370) (3.7) — — State taxes, net of federal benefit 727 7.3 305 2.0 Other 42 0.4 — — Income tax expense $ 2,477 25.0 % $ 305 2.0 % Six Months Ended June 30, 2020 2019 Amount Percentage Amount Percentage (dollars in thousands) Federal income tax, at statutory rate $ 3,811 21.0 % $ — — % Increase (decrease) resulting from: Federally tax exempt interest income (727) (4.0) — — State taxes, net of federal benefit 1,358 7.5 520 1.5 Other 66 0.3 — — Income tax expense $ 4,508 24.8 % $ 520 1.5 %
Schedule of components of the net deferred tax asset	June 30, December 31, 2020 2019 (dollars in thousands) Deferred tax assets Allowance for loan losses $ 8,398 $ 6,309 Compensation related 2,035 5,859 Deferred loan fees 2,156 497 Nonaccrual interest 668 858 Foreclosed assets 65 574 Goodwill 434 531 Other 1,099 785 Total deferred tax assets 14,855 15,413 Deferred tax liabilities Fixed asset depreciation 4,380 4,201 Mortgage servicing rights 1,665 2,428 Other purchase accounting adjustments 1,273 1,356 Intangible assets 709 841 Prepaid assets 678 504 Net unrealized gain on debt securities available-for-sale 6,296 2,251 Other 381 426 Total deferred tax liabilities 15,382 12,007 Net deferred tax asset (liability) $ (527) 3,406

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2020
EARNINGS PER SHARE
Schedule of reconciliations of the numerators and denominators used to compute basic and diluted earnings	Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (dollars in thousands) Numerator: Net income $ 7,419 $ 14,605 $ 13,640 $ 33,341 Earnings allocated to unvested restricted stock units (19) — (34) — Numerator for earnings per share - basic and diluted $ 7,400 $ 14,605 $ 13,606 $ 33,341 Denominator: Weighted average common shares outstanding 27,457,306 18,027,512 27,457,306 18,027,512 Dilutive effect of outstanding restricted stock units — — — — Weighted average common shares outstanding, including all dilutive potential shares 27,457,306 18,027,512 27,457,306 18,027,512 Earnings per share - Basic $ 0.27 $ 0.81 $ 0.50 $ 1.85 Earnings per share - Diluted $ 0.27 $ 0.81 $ 0.50 $ 1.85

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS (Tables)	6 Months Ended
	Jun. 30, 2020
STOCK-BASED COMPENSATION PLANS
Summary of stock-based compensation expense	Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (dollars in thousands) Restricted stock units $ 96 $ — $ 163 $ — Stock appreciation rights 107 — (228) (115) Total stock-based compensation expense (benefit) $ 203 $ — $ (65) $ (115)
Schedule of the summary of outstanding restricted stock units	Three Months Ended June 30, 2020 2019 Weighted Weighted Restricted Average Restricted Average Stock Units Grant Date Stock Units Grant Date Outstanding Fair Value Outstanding Fair Value Beginning balance 73,150 $ 19.03 — $ — Granted 550 12.71 — — Vested — — — — Forfeited — — — — Ending balance 73,700 $ 18.98 — $ — Six Months Ended June 30, 2020 2019 Weighted Weighted Restricted Average Restricted Average Stock Units Grant Date Stock Units Grant Date Outstanding Fair Value Outstanding Fair Value Beginning balance — $ — — $ — Granted 73,700 18.98 — — Vested — — — — Forfeited — — — — Ending balance 73,700 $ 18.98 — $ — A further summary of outstanding restricted stock units as of June 30, 2020, is as follows: Weighted Average Remaining Range of Grant Date Fair Values Outstanding Contractual Term $ 12.71 550 0.6 years $ 19.03 73,150 3.5 years
Schedule of the status of stock appreciation rights and changes	Three Months Ended June 30, 2020 2019 Stock Weighted Stock Weighted Beginning balance 110,160 $ 16.32 91,800 $ 5.73 Granted — — — — Exercised — — (48,960) 4.21 Forfeited — — — — Ending balance 110,160 $ 16.32 42,840 $ 7.46 Six Months Ended June 30, 2020 2019 Stock Weighted Stock Weighted Beginning balance 110,160 $ 16.32 91,800 $ 5.73 Granted — — — — Exercised — — (48,960) 4.21 Forfeited — — — — Ending balance 110,160 $ 16.32 42,840 $ 7.46 A further summary of outstanding stock appreciation rights as of June 30, 2020, is as follows: Weighted Average Remaining Range of Grant Date Assigned Values Outstanding Exercisable Contractual Term $ 16.32 110,160 79,560 9.2 years
Schedule of assumptions used in valuing stock appreciation rights	June 30, December 31, 2020 2019 Risk-free interest rate 0.61 % 1.90 % Expected volatility 34.32 % 28.83 % Expected life (in years) 9.2 9.7 Expected dividend yield 4.50 % 3.16 %

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)	6 Months Ended
	Jun. 30, 2020
REGULATORY MATTERS
Schedule of the Company's and the bank subsidiaries' actual and required capital amounts and ratios	Actual For Capital To Be Well June 30, 2020 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 370,484 % $ 195,840 8.00 % N/A N/A Heartland Bank 327,109 180,224 8.00 $ 225,280 10.00 % State Bank of Lincoln 35,891 15,444 8.00 19,305 10.00 Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 340,761 % $ 146,880 6.00 % N/A N/A Heartland Bank 299,935 135,168 6.00 $ 180,224 8.00 % State Bank of Lincoln 33,477 11,583 6.00 15,444 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 304,310 % $ 110,160 4.50 % N/A N/A Heartland Bank 299,935 101,376 4.50 $ 146,432 6.50 % State Bank of Lincoln 33,477 8,687 4.50 12,548 6.50 Tier 1 Capital (to Average Assets) Consolidated HBT Financial, Inc. $ 340,761 % $ 136,357 4.00 % N/A N/A Heartland Bank 299,935 122,741 4.00 $ 153,426 5.00 % State Bank of Lincoln 33,477 13,488 4.00 16,861 5.00 Actual For Capital To Be Well December 31, 2019 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 356,994 % $ 196,358 8.00 % N/A N/A Heartland Bank 315,516 180,071 8.00 $ 225,088 10.00 % State Bank of Lincoln 35,390 16,104 8.00 20,130 10.00 Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 334,695 % $ 147,268 6.00 % N/A N/A Heartland Bank 295,385 135,053 6.00 $ 180,071 8.00 % State Bank of Lincoln 33,222 12,078 6.00 16,104 8.00 Common Equity Tier 1 Capital (to Risk Weighted Assets) Consolidated HBT Financial, Inc. $ 298,277 % $ 110,451 4.50 % N/A N/A Heartland Bank 295,385 101,290 4.50 $ 146,307 6.50 % State Bank of Lincoln 33,222 9,058 4.50 13,084 6.50 Tier 1 Capital (to Average Assets) Consolidated HBT Financial, Inc. $ 334,695 % $ 129,027 4.00 % N/A N/A Heartland Bank 295,385 115,281 4.00 $ 144,102 5.00 % State Bank of Lincoln 33,222 13,531 4.00 16,914 5.00

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2020
FAIR VALUE OF FINANCIAL INSTRUMENTS
Summary of assets measured at fair value on a recurring basis	June 30, 2020 Level 1 Level 2 Level 3 Total (dollars in thousands) Debt securities available-for-sale: U.S. government agency $ — $ 78,935 $ — $ 78,935 Municipal — 198,310 — 198,310 Mortgage-backed: Agency residential — 216,869 — 216,869 Agency commercial — 138,149 — 138,149 Corporate — 69,090 — 69,090 Equity securities with readily determinable fair values 3,263 — — 3,263 Mortgage servicing rights — — 5,839 5,839 Derivative financial assets — 22,965 — 22,965 Derivative financial liabilities — 24,639 — 24,639 December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Debt securities available-for-sale: U.S. government agency $ — $ 49,615 $ — $ 49,615 Municipal — 133,738 — 133,738 Mortgage-backed: Agency residential — 200,678 — 200,678 Agency commercial — 134,954 — 134,954 Corporate — 73,419 — 73,419 Equity securities with readily determinable fair values 3,241 — — 3,241 Mortgage servicing rights — — 8,518 8,518 Derivative financial assets — 8,642 — 8,642 Derivative financial liabilities — 9,318 — 9,318
Schedule of quantitative information about the unobservable inputs used in recurring Level 3 fair value measurements	The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands): June 30, 2020 Fair Value Valuation Technique Unobservable Inputs Range Mortgage servicing rights $ 5,839 Discounted cash flows Constant pre-payment rates (CPR) 7.0% to 77.3% (16.5%) Discount rate 9.0% to 11.0% (9.0%) December 31, 2019 Fair Value Valuation Technique Unobservable Inputs Range Mortgage servicing rights $ 8,518 Discounted cash flows Constant pre-payment rates (CPR) 7.0% to 68.5% (12.3%) Discount rate 9.0% to 11.0% (9.0%)
Summary of assets measured at fair value on a nonrecurring basis	June 30, 2020 Level 1 Level 2 Level 3 Total (dollars in thousands) Loans held for sale $ — $ 25,934 $ — $ 25,934 Collateral-dependent impaired loans — — 12,204 12,204 Bank premises held for sale — — 121 121 Foreclosed assets — — 4,450 4,450 December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Loans held for sale $ — $ 4,531 $ — $ 4,531 Collateral-dependent impaired loans — — 15,811 15,811 Bank premises held for sale — — 121 121 Foreclosed assets — — 5,099 5,099
Schedule of quantitative information about the unobservable inputs used in non-recurring Level 3 fair value measurements	The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands): June 30, 2020 Fair Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 12,204 Appraisal of collateral Appraisal adjustments Not meaningful Bank premises held for sale 121 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 4,450 Appraisal Appraisal adjustments 7% (7%) December 31, 2019 Fair Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 15,811 Appraisal of collateral Appraisal adjustments Not meaningful Bank premises held for sale 121 Appraisal Appraisal adjustments 7% (7%) Foreclosed assets 5,099 Appraisal Appraisal adjustments 7% (7%)
Summary information on the carrying amounts and estimated fair values of the Company’s financial instruments	Fair Value June 30, 2020 December 31, 2019 Hierarchy Carrying Estimated Carrying Estimated Level Amount Fair Value Amount Fair Value (dollars in thousands) Financial assets: Cash and cash equivalents Level 1 $ 314,365 $ 314,365 $ 283,971 $ 283,971 Interest-bearing time deposits with banks Level 1 — — 248 248 Debt securities held-to-maturity Level 2 73,823 78,317 88,477 90,529 Restricted stock Level 3 2,498 2,498 2,425 2,425 Loans, net Level 3 2,246,072 2,259,411 2,141,527 2,181,103 Investments in unconsolidated subsidiaries Level 3 1,165 1,165 1,165 1,165 Accrued interest receivable Level 2 12,661 12,661 13,951 13,951 Financial liabilities: Time deposits Level 3 310,818 312,873 356,408 355,340 Securities sold under agreements to repurchase Level 2 51,354 51,354 44,433 44,433 Subordinated debentures Level 3 37,616 31,507 37,583 31,959 Accrued interest payable Level 2 821 821 1,132 1,132

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2020
COMMITMENTS AND CONTINGENCIES
Schedule of commitments and conditional obligations	Contractual Amount June 30, December 31, 2020 2019 (dollars in thousands) Commitments to extend credit $ 536,489 $ 542,705 Standby letters of credit 9,649 8,991

ACCOUNTING POLICIES (Details)

ACCOUNTING POLICIES (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020USD ($)segment	Dec. 31, 2019shares
ACCOUNTING POLICIES
Pro forma dilutive instruments | shares		0
Provision for prepaid dividend | $	$ 0
Number of segments | segment	1

SECURITIES - Narrative (Details

SECURITIES - Narrative (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
SECURITIES
Adjustment to carrying value of equity securities with no readily determinable fair value	$ 0	$ 0	$ 0	$ 0
Carrying value of securities pledged to secure public and trust deposits	$ 342,031		$ 342,031		$ 284,895
Illinois
SECURITIES
Percentage of obligations of local municipalities			43.00%
Percentage of general obligations in local municipalities			89.00%

SECURITIES - Carrying balances

SECURITIES - Carrying balances of securities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
SECURITIES
Debt securities available-for-sale, at fair value	$ 701,353	$ 592,404
Securities held-to-maturity	73,823	88,477
Equity securities: Readily determinable fair value	3,263	3,241
Equity securities: No readily determinable fair value	1,552	1,148
Total securities	779,991	685,270
Downward adjustment on equity securities with no readily determinable fair value	165	165
Impairment on equity securities with no readily determinable value	0	0
Upward adjustment on equity securities with no readily determinable fair value	$ 0	$ 0

SECURITIES - Amortized cost and

SECURITIES - Amortized cost and Fair values of securities with gross unrealized gains and losses (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Available-for-sale
Amortized Cost	$ 679,264	$ 584,507
Gross Unrealized Gains	22,323	8,508
Gross Unrealized Losses	(234)	(611)
Fair Value	701,353	592,404
Held-to-maturity
Amortized Cost	73,823	88,477
Gross Unrealized Gains	4,494	2,276
Gross Unrealized Losses		(224)
Fair Value	78,317	90,529
Total Amortized Cost	753,087	672,984
Total Gross Unrealized Gains	26,817	10,784
Total Gross Unrealized Losses	(234)	(835)
Total Fair Value	779,670	682,933
U.S. government agency
Available-for-sale
Amortized Cost	75,881	49,113
Gross Unrealized Gains	3,061	529
Gross Unrealized Losses	(7)	(27)
Fair Value	78,935	49,615
Municipal securities
Available-for-sale
Amortized Cost	191,453	131,241
Gross Unrealized Gains	6,885	2,503
Gross Unrealized Losses	(28)	(6)
Fair Value	198,310	133,738
Held-to-maturity
Amortized Cost	28,528	45,239
Gross Unrealized Gains	1,507	1,340
Fair Value	30,035	46,579
Mortgage-backed: Agency residential
Available-for-sale
Amortized Cost	211,577	198,184
Gross Unrealized Gains	5,393	2,780
Gross Unrealized Losses	(101)	(286)
Fair Value	216,869	200,678
Held-to-maturity
Amortized Cost	16,516	19,072
Gross Unrealized Gains	567	161
Gross Unrealized Losses		(170)
Fair Value	17,083	19,063
Mortgage-backed: Agency commercial
Available-for-sale
Amortized Cost	133,149	133,730
Gross Unrealized Gains	5,022	1,516
Gross Unrealized Losses	(22)	(292)
Fair Value	138,149	134,954
Held-to-maturity
Amortized Cost	28,779	24,166
Gross Unrealized Gains	2,420	775
Gross Unrealized Losses		(54)
Fair Value	31,199	24,887
Corporate
Available-for-sale
Amortized Cost	67,204	72,239
Gross Unrealized Gains	1,962	1,180
Gross Unrealized Losses	(76)
Fair Value	$ 69,090	$ 73,419

SECURITIES - Amortized cost a_2

SECURITIES - Amortized cost and Fair values of securities with maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Amortized Cost
Amortized Cost	$ 679,264	$ 584,507
Fair Value
Fair Value	701,353	592,404
Amortized Cost
Securities held-to-maturity	73,823	88,477
Fair Value
Fair Value	78,317	90,529
Mortgage-backed: Agency residential
Amortized Cost
Amortized Cost	211,577	198,184
Fair Value
Fair Value	216,869	200,678
Amortized Cost
Securities held-to-maturity	16,516	19,072
Fair Value
Fair Value	17,083	19,063
Mortgage-backed: Agency commercial
Amortized Cost
Amortized Cost	133,149	133,730
Fair Value
Fair Value	138,149	134,954
Amortized Cost
Securities held-to-maturity	28,779	24,166
Fair Value
Fair Value	31,199	$ 24,887
Available-for-sale
Amortized Cost
Due in 1 year or less	32,518
Due after 1 year through 5 years	92,615
Due after 5 years through 10 years	151,731
Due after 10 years	57,674
Amortized Cost	679,264
Fair Value
Due in 1 year or less	32,748
Due after 1 year through 5 years	95,593
Due after 5 years through 10 years	158,201
Due after 10 years	59,793
Fair Value	701,353
Available-for-sale | Mortgage-backed: Agency residential
Amortized Cost
Amortized Cost	211,577
Fair Value
Fair Value	216,869
Available-for-sale | Mortgage-backed: Agency commercial
Amortized Cost
Amortized Cost	133,149
Fair Value
Fair Value	138,149
Held-to-maturity
Amortized Cost
Due in 1 year or less	748
Due after 1 year through 5 years	14,963
Due after 5 years through 10 years	11,926
Due after 10 years	891
Securities held-to-maturity	73,823
Fair Value
Due in 1 year or less	754
Due after 1 year through 5 years	15,733
Due after 5 years through 10 years	12,620
Due after 10 years	928
Fair Value	78,317
Held-to-maturity | Mortgage-backed: Agency residential
Amortized Cost
Securities held-to-maturity	16,516
Fair Value
Fair Value	17,083
Held-to-maturity | Mortgage-backed: Agency commercial
Amortized Cost
Securities held-to-maturity	28,779
Fair Value
Fair Value	$ 31,199

SECURITIES - Sale and Gain (los

SECURITIES - Sale and Gain (loss) on securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Net unrealized gains (losses) on equities:
Readily determinable fair value	$ 57	$ 36	$ 5	$ 115
Gains (losses) on securities	$ 57	$ 36	$ 5	$ 115

SECURITIES - Investments in a C

SECURITIES - Investments in a Continuous Unrealized Loss Position (Details) $ in Thousands	Jun. 30, 2020USD ($)item	Dec. 31, 2019USD ($)
Available-for-sale: Unrealized Loss
Less than 12 Months	$ (188)	$ (240)
12 Months or More	(46)	(371)
Total Unrealized Loss of Available-for-sale securities	(234)	(611)
Held-to-maturity: Unrealized Loss
Less than 12 Months		(77)
12 Months or More		(147)
Total Unrealized Loss of Held-to-maturity securities		(224)
Available-for-sale: Fair Value
Less than 12 Months	34,473	65,378
12 Months or More	13,232	44,998
Total Fair Value Available-for-sale securities	47,705	110,376
Held-to-maturity: Fair value
Less than 12 Months		9,532
12 Months or More		9,601
Total Fair Value Held-to-maturity securities		19,133
Total: Unrealized Losses
Less Than 12 Months	(188)	(317)
12 Months or More	(46)	(518)
Total Unrealized Losses	(234)	(835)
Total: Fair Value
Less than 12 Months	34,473	74,910
12 Months or More	13,232	54,599
Total Fair Value	$ 47,705	129,509
Number of securities in an unrealized loss position for a period of twelve months or more | item	9
Number of securities in an unrealized loss position for a period of less than twelve months | item	28
U.S. government agency
Available-for-sale: Unrealized Loss
Less than 12 Months	$ (7)	(26)
12 Months or More		(1)
Total Unrealized Loss of Available-for-sale securities	(7)	(27)
Available-for-sale: Fair Value
Less than 12 Months	3,605	18,865
12 Months or More		1,998
Total Fair Value Available-for-sale securities	3,605	20,863
Municipal securities
Available-for-sale: Unrealized Loss
Less than 12 Months	(28)	(6)
Total Unrealized Loss of Available-for-sale securities	(28)	(6)
Available-for-sale: Fair Value
Less than 12 Months	4,989	894
Total Fair Value Available-for-sale securities	4,989	894
Mortgage-backed: Agency residential
Available-for-sale: Unrealized Loss
Less than 12 Months	(77)	(108)
12 Months or More	(24)	(178)
Total Unrealized Loss of Available-for-sale securities	(101)	(286)
Held-to-maturity: Unrealized Loss
Less than 12 Months		(30)
12 Months or More		(140)
Total Unrealized Loss of Held-to-maturity securities		(170)
Available-for-sale: Fair Value
Less than 12 Months	15,955	25,563
12 Months or More	7,194	27,296
Total Fair Value Available-for-sale securities	23,149	52,859
Held-to-maturity: Fair value
Less than 12 Months		2,516
12 Months or More		9,002
Total Fair Value Held-to-maturity securities		11,518
Mortgage-backed: Agency commercial
Available-for-sale: Unrealized Loss
Less than 12 Months		(100)
12 Months or More	(22)	(192)
Total Unrealized Loss of Available-for-sale securities	(22)	(292)
Held-to-maturity: Unrealized Loss
Less than 12 Months		(47)
12 Months or More		(7)
Total Unrealized Loss of Held-to-maturity securities		(54)
Available-for-sale: Fair Value
Less than 12 Months		20,056
12 Months or More	6,038	15,704
Total Fair Value Available-for-sale securities	6,038	35,760
Held-to-maturity: Fair value
Less than 12 Months		7,016
12 Months or More		599
Total Fair Value Held-to-maturity securities		$ 7,615
Corporate
Available-for-sale: Unrealized Loss
Less than 12 Months	(76)
Total Unrealized Loss of Available-for-sale securities	(76)
Available-for-sale: Fair Value
Less than 12 Months	9,924
Total Fair Value Available-for-sale securities	$ 9,924

LOANS AND THE ALLOWANCE FOR L_3

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Categories of loans (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	$ 2,275,795		$ 2,163,826
Allowance for loan losses	(29,723)	$ (26,087)	(22,299)	$ (22,542)	$ (21,013)	$ (20,509)
Loans, net of allowance for loan losses	2,246,072		2,141,527
Paycheck Protection Program (PPP) Loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	177,958
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	408,230		307,175
Allowance for loan losses	(4,356)	(4,224)	(4,441)	(5,187)	(3,762)	(3,748)
Commercial and industrial | Paycheck Protection Program (PPP) Loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	166,868
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	239,101		207,776
Allowance for loan losses	(2,890)	(2,993)	(2,766)	(2,862)	(3,248)	(2,650)
Agricultural and farmland | Paycheck Protection Program (PPP) Loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	4,027
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	228,506		231,162
Allowance for loan losses	(3,257)	(2,122)	(1,779)	(2,487)	(2,353)	(2,506)
Commercial real estate - non-owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	535,339		579,757
Allowance for loan losses	(6,767)	(4,432)	(3,663)	(2,721)	(2,722)	(2,644)
Multi-family
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	186,440		179,073
Allowance for loan losses	(1,581)	(1,474)	(1,024)	(1,153)	(972)	(912)
Construction and land development
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	247,640		224,887
Allowance for loan losses	(3,366)	(3,223)	(2,977)	(3,723)	(3,897)	(4,176)
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	308,133		313,580
Allowance for loan losses	(3,010)	(3,284)	(2,540)	(3,569)	(3,067)	(2,782)
Municipal, consumer, and other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	122,406		120,416
Allowance for loan losses	(4,496)	$ (4,335)	$ (3,109)	$ (840)	$ (992)	$ (1,091)
Municipal, consumer, and other | Paycheck Protection Program (PPP) Loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	$ 7,063

LOANS AND THE ALLOWANCE FOR L_4

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Summary (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	$ 26,087	$ 21,013	$ 22,299	$ 20,509
Provision for loan losses	3,573	1,806	7,928	2,582
Charge-offs	(160)	(966)	(1,381)	(1,499)
Recoveries	223	689	877	950
Allowance for loan losses at end of period	29,723	22,542	29,723	22,542
Commercial and industrial
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	4,224	3,762	4,441	3,748
Provision for loan losses	125	1,393	663	1,615
Charge-offs		(27)	(809)	(283)
Recoveries	7	59	61	107
Allowance for loan losses at end of period	4,356	5,187	4,356	5,187
Agricultural and farmland
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	2,993	3,248	2,766	2,650
Provision for loan losses	(103)	(356)	151	242
Charge-offs		(30)	(27)	(30)
Allowance for loan losses at end of period	2,890	2,862	2,890	2,862
Commercial real estate - owner occupied
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	2,122	2,353	1,779	2,506
Provision for loan losses	1,135	233	1,038	126
Charge-offs		(101)		(166)
Recoveries		2	440	21
Allowance for loan losses at end of period	3,257	2,487	3,257	2,487
Commercial real estate - non-owner occupied
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	4,432	2,722	3,663	2,644
Provision for loan losses	2,275	(7)	3,095	67
Charge-offs			(56)
Recoveries	60	6	65	10
Allowance for loan losses at end of period	6,767	2,721	6,767	2,721
Multi-family
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	1,474	972	1,024	912
Provision for loan losses	107	181	557	241
Allowance for loan losses at end of period	1,581	1,153	1,581	1,153
Construction and land development
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	3,223	3,897	2,977	4,176
Provision for loan losses	135	(587)	372	(877)
Charge-offs		(9)	(1)	(9)
Recoveries	8	422	18	433
Allowance for loan losses at end of period	3,366	3,723	3,366	3,723
One-to-four family residential
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	3,284	3,067	2,540	2,782
Provision for loan losses	(317)	1,022	460	1,233
Charge-offs	(8)	(602)	(112)	(639)
Recoveries	51	82	122	193
Allowance for loan losses at end of period	3,010	3,569	3,010	3,569
Municipal, consumer, and other
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	4,335	992	3,109	1,091
Provision for loan losses	216	(73)	1,592	(65)
Charge-offs	(152)	(197)	(376)	(372)
Recoveries	97	118	171	186
Allowance for loan losses at end of period	$ 4,496	$ 840	$ 4,496	$ 840

LOANS AND THE ALLOWANCE FOR L_5

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Recorded investments in loans and the allowance for loan losses (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	$ 2,150,097		$ 2,051,802
Individually evaluated for impairment, Loans	85,408		69,351
Total	2,275,795		2,163,826
Collectively evaluated for impairment, Allowance for loan losses	21,904		15,496
Individually evaluated for impairment, Allowance for loan losses	6,711		6,180
Total investments in loans	29,723	$ 26,087	22,299	$ 22,542	$ 21,013	$ 20,509
Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	40,290		42,673
Individually evaluated for impairment, Allowance for loan losses	1,108		623
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	398,730		294,006
Individually evaluated for impairment, Loans	7,704		10,733
Total	408,230		307,175
Collectively evaluated for impairment, Allowance for loan losses	2,514		1,926
Individually evaluated for impairment, Allowance for loan losses	1,732		2,170
Total investments in loans	4,356	4,224	4,441	5,187	3,762	3,748
Commercial and industrial | Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	1,796		2,436
Individually evaluated for impairment, Allowance for loan losses	110		345
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	220,915		192,722
Individually evaluated for impairment, Loans	17,216		13,966
Total	239,101		207,776
Collectively evaluated for impairment, Allowance for loan losses	2,854		2,576
Individually evaluated for impairment, Allowance for loan losses	34		105
Total investments in loans	2,890	2,993	2,766	2,862	3,248	2,650
Agricultural and farmland | Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	970		1,088
Individually evaluated for impairment, Allowance for loan losses	2		85
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	207,606		211,744
Individually evaluated for impairment, Loans	12,737		10,927
Total	228,506		231,162
Collectively evaluated for impairment, Allowance for loan losses	2,527		1,486
Individually evaluated for impairment, Allowance for loan losses	437		270
Total investments in loans	3,257	2,122	1,779	2,487	2,353	2,506
Commercial real estate - owner occupied | Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	8,163		8,491
Individually evaluated for impairment, Allowance for loan losses	293		23
Commercial real estate - non-owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	500,354		561,277
Individually evaluated for impairment, Loans	20,095		3,398
Total	535,339		579,757
Collectively evaluated for impairment, Allowance for loan losses	6,152		3,591
Individually evaluated for impairment, Allowance for loan losses	91		70
Total investments in loans	6,767	4,432	3,663	2,721	2,722	2,644
Commercial real estate - non-owner occupied | Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	14,890		15,082
Individually evaluated for impairment, Allowance for loan losses	524		2
Multi-family
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	185,152		176,273
Individually evaluated for impairment, Loans			1,324
Total	186,440		179,073
Collectively evaluated for impairment, Allowance for loan losses	1,571		1,019
Total investments in loans	1,581	1,474	1,024	1,153	972	912
Multi-family | Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	1,288		1,476
Individually evaluated for impairment, Allowance for loan losses	10		5
Construction and land development
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	241,694		217,708
Individually evaluated for impairment, Loans	2,661		3,782
Total	247,640		224,887
Collectively evaluated for impairment, Allowance for loan losses	2,975		2,283
Individually evaluated for impairment, Allowance for loan losses	259		567
Total investments in loans	3,366	3,223	2,977	3,723	3,897	4,176
Construction and land development | Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	3,285		3,397
Individually evaluated for impairment, Allowance for loan losses	132		127
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	286,969		291,624
Individually evaluated for impairment, Loans	11,344		11,349
Total	308,133		313,580
Collectively evaluated for impairment, Allowance for loan losses	2,306		1,684
Individually evaluated for impairment, Allowance for loan losses	668		822
Total investments in loans	3,010	3,284	2,540	3,569	3,067	2,782
One-to-four family residential | Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	9,820		10,607
Individually evaluated for impairment, Allowance for loan losses	36		34
Municipal, consumer, and other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	108,677		106,448
Individually evaluated for impairment, Loans	13,651		13,872
Total	122,406		120,416
Collectively evaluated for impairment, Allowance for loan losses	1,005		931
Individually evaluated for impairment, Allowance for loan losses	3,490		2,176
Total investments in loans	4,496	$ 4,335	3,109	$ 840	$ 992	$ 1,091
Municipal, consumer, and other | Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	78		96
Individually evaluated for impairment, Allowance for loan losses	$ 1		$ 2

LOANS AND THE ALLOWANCE FOR L_6

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Individually evaluated for impairment by category of loans (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
Unpaid Principal Balance
With an allowance recorded	$ 18,961		$ 18,961		$ 22,029
With no related allowance	66,607		66,607		47,386
Total	85,568		85,568		69,415
Recorded Investment
With an allowance recorded	18,915		18,915		21,991
With no related allowance	66,493		66,493		47,360
Total	85,408		85,408		69,351
Related Allowance	6,711		6,711		6,180
Average Recorded Investment
With an allowance recorded	19,134	$ 18,651	21,466	$ 18,662
With no related allowance	67,516	79,417	54,895	79,936
Total	86,650	98,068	76,361	98,598
Interest Income Recognized
With an allowance recorded	230	138	449	317
With no related allowance	616	770	1,127	1,237
Total	846	908	1,576	1,554
Commercial and industrial
Unpaid Principal Balance
With an allowance recorded	3,052		3,052		4,292
With no related allowance	4,656		4,656		6,438
Total	7,708		7,708		10,730
Recorded Investment
With an allowance recorded	3,052		3,052		4,292
With no related allowance	4,652		4,652		6,441
Total	7,704		7,704		10,733
Related Allowance	1,732		1,732		2,170
Average Recorded Investment
With an allowance recorded	3,126	5,864	3,306	5,940
With no related allowance	5,095	10,490	5,518	10,461
Total	8,221	16,354	8,824	16,401
Interest Income Recognized
With an allowance recorded	39	54	88	89
With no related allowance	94	103	152	196
Total	133	157	240	285
Agricultural and farmland
Unpaid Principal Balance
With an allowance recorded	174		174		590
With no related allowance	17,040		17,040		13,369
Total	17,214		17,214		13,959
Recorded Investment
With an allowance recorded	174		174		590
With no related allowance	17,042		17,042		13,376
Total	17,216		17,216		13,966
Related Allowance	34		34		105
Average Recorded Investment
With an allowance recorded	177	997	374	877
With no related allowance	16,853	20,280	14,687	20,417
Total	17,030	21,277	15,061	21,294
Interest Income Recognized
With an allowance recorded			4	7
With no related allowance	195	228	356	342
Total	195	228	360	349
Commercial real estate - owner occupied
Unpaid Principal Balance
With an allowance recorded	1,303		1,303		830
With no related allowance	11,436		11,436		10,089
Total	12,739		12,739		10,919
Recorded Investment
With an allowance recorded	1,303		1,303		830
With no related allowance	11,434		11,434		10,097
Total	12,737		12,737		10,927
Related Allowance	437		437		270
Average Recorded Investment
With an allowance recorded	1,312	3,415	1,070	3,434
With no related allowance	11,899	14,427	11,166	14,656
Total	13,211	17,842	12,236	18,090
Interest Income Recognized
With an allowance recorded	27	10	38	79
With no related allowance	120	197	251	332
Total	147	207	289	411
Commercial real estate - non-owner occupied
Unpaid Principal Balance
With an allowance recorded	166		166		99
With no related allowance	19,973		19,973		3,297
Total	20,139		20,139		3,396
Recorded Investment
With an allowance recorded	166		166		99
With no related allowance	19,929		19,929		3,299
Total	20,095		20,095		3,398
Related Allowance	91		91		70
Average Recorded Investment
With an allowance recorded	167	102	133	102
With no related allowance	20,067	3,938	11,704	3,958
Total	20,234	4,040	11,837	4,060
Interest Income Recognized
With an allowance recorded	3		5
With no related allowance	65		106	54
Total	68		111	54
Multi-family
Unpaid Principal Balance
With no related allowance					1,328
Total					1,328
Recorded Investment
With no related allowance					1,324
Total					1,324
Average Recorded Investment
With an allowance recorded		1,349		1,354
With no related allowance		2,400		2,431
Total		3,749		3,785
Interest Income Recognized
With no related allowance		81		81
Total		81		81
Construction and land development
Unpaid Principal Balance
With an allowance recorded	2,564		2,564		3,679
With no related allowance	100		100		104
Total	2,664		2,664		3,783
Recorded Investment
With an allowance recorded	2,563		2,563		3,679
With no related allowance	98		98		103
Total	2,661		2,661		3,782
Related Allowance	259		259		567
Average Recorded Investment
With an allowance recorded	2,573	2,882	2,819	2,887
With no related allowance	101	107	213	108
Total	2,674	2,989	3,032	2,995
Interest Income Recognized
With an allowance recorded	25	45	66	89
With no related allowance		1	2	2
Total	25	46	68	91
One-to-four family residential
Unpaid Principal Balance
With an allowance recorded	2,821		2,821		3,401
With no related allowance	8,593		8,593		7,986
Total	11,414		11,414		11,387
Recorded Investment
With an allowance recorded	2,803		2,803		3,390
With no related allowance	8,541		8,541		7,959
Total	11,344		11,344		11,349
Related Allowance	668		668		822
Average Recorded Investment
With an allowance recorded	2,868	3,818	3,065	3,832
With no related allowance	8,666	10,406	8,505	10,488
Total	11,534	14,224	11,570	14,320
Interest Income Recognized
With an allowance recorded	31	27	60	49
With no related allowance	141	51	203	120
Total	172	78	263	169
Municipal, consumer, and other
Unpaid Principal Balance
With an allowance recorded	8,881		8,881		9,138
With no related allowance	4,809		4,809		4,775
Total	13,690		13,690		13,913
Recorded Investment
With an allowance recorded	8,854		8,854		9,111
With no related allowance	4,797		4,797		4,761
Total	13,651		13,651		13,872
Related Allowance	3,490		3,490		$ 2,176
Average Recorded Investment
With an allowance recorded	8,911	224	10,699	236
With no related allowance	4,835	17,369	3,102	17,417
Total	13,746	17,593	13,801	17,653
Interest Income Recognized
With an allowance recorded	105	2	188	4
With no related allowance	1	109	57	110
Total	$ 106	$ 111	$ 245	$ 114

LOANS AND THE ALLOWANCE FOR L_7

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Past Due Status (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Accruing Interest
Current	$ 2,259,837	$ 2,141,360
Nonaccrual	13,945	19,019
Total	2,275,795	2,163,826
30 - 89 Days Past Due
Accruing Interest
Past due	1,857	3,346
90+ Days Past Due
Accruing Interest
Past due	156	101
Commercial and industrial
Accruing Interest
Current	404,768	301,975
Nonaccrual	3,353	4,642
Total	408,230	307,175
Commercial and industrial | 30 - 89 Days Past Due
Accruing Interest
Past due	109	558
Agricultural and farmland
Accruing Interest
Current	233,928	201,519
Nonaccrual	4,931	6,257
Total	239,101	207,776
Agricultural and farmland | 30 - 89 Days Past Due
Accruing Interest
Past due	242
Commercial real estate - owner occupied
Accruing Interest
Current	227,345	228,218
Nonaccrual	801	2,003
Total	228,506	231,162
Commercial real estate - owner occupied | 30 - 89 Days Past Due
Accruing Interest
Past due	360	941
Commercial real estate - non-owner occupied
Accruing Interest
Current	535,127	579,626
Nonaccrual	212
Total	535,339	579,757
Commercial real estate - non-owner occupied | 30 - 89 Days Past Due
Accruing Interest
Past due		131
Multi-family
Accruing Interest
Current	186,440	177,696
Nonaccrual		1,377
Total	186,440	179,073
Construction and land development
Accruing Interest
Current	247,472	224,716
Nonaccrual	168	31
Total	247,640	224,887
Construction and land development | 30 - 89 Days Past Due
Accruing Interest
Past due		140
One-to-four family residential
Accruing Interest
Current	302,665	307,712
Nonaccrual	4,321	4,464
Total	308,133	313,580
One-to-four family residential | 30 - 89 Days Past Due
Accruing Interest
Past due	998	1,329
One-to-four family residential | 90+ Days Past Due
Accruing Interest
Past due	149	75
Municipal, consumer, and other
Accruing Interest
Current	122,092	119,898
Nonaccrual	159	245
Total	122,406	120,416
Municipal, consumer, and other | 30 - 89 Days Past Due
Accruing Interest
Past due	148	247
Municipal, consumer, and other | 90+ Days Past Due
Accruing Interest
Past due	$ 7	$ 26

LOANS AND THE ALLOWANCE FOR L_8

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Assigned Risk Ratings (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	$ 2,275,795	$ 2,163,826
Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	2,032,834	1,964,810
Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	150,130	126,596
Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	92,831	72,420
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	408,230	307,175
Commercial and industrial | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	376,348	267,645
Commercial and industrial | Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	22,442	27,114
Commercial and industrial | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	9,440	12,416
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	239,101	207,776
Agricultural and farmland | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	206,481	180,735
Agricultural and farmland | Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	14,638	12,267
Agricultural and farmland | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	17,982	14,774
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	228,506	231,162
Commercial real estate - owner occupied | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	192,278	198,710
Commercial real estate - owner occupied | Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	23,058	21,745
Commercial real estate - owner occupied | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	13,170	10,707
Commercial real estate - non-owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	535,339	579,757
Commercial real estate - non-owner occupied | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	455,660	531,694
Commercial real estate - non-owner occupied | Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	56,607	46,092
Commercial real estate - non-owner occupied | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	23,072	1,971
Multi-family
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	186,440	179,073
Multi-family | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	175,543	175,807
Multi-family | Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	10,897	1,771
Multi-family | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total		1,495
Construction and land development
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	247,640	224,887
Construction and land development | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	234,415	217,120
Construction and land development | Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	10,159	3,582
Construction and land development | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	3,066	4,185
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	308,133	313,580
One-to-four family residential | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	283,601	287,036
One-to-four family residential | Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	12,073	13,546
One-to-four family residential | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	12,459	12,998
Municipal, consumer, and other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	122,406	120,416
Municipal, consumer, and other | Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	108,508	106,063
Municipal, consumer, and other | Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	256	479
Municipal, consumer, and other | Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	$ 13,642	$ 13,874

LOANS AND THE ALLOWANCE FOR L_9

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Financial Effect of Troubled Debt Restructurings (Details)	3 Months Ended	6 Months Ended
	Jun. 30, 2019USD ($)loan	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)loan	Dec. 31, 2019USD ($)
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Number of Loans | loan	5		6
Recorded Investment, Pre-Modification	$ 793,000		$ 1,078,000
Recorded Investment, Post-Modification	$ 793,000		$ 1,078,000
Troubled debt restructuring subsequent payment defaults within 12 months		$ 0
Troubled debt restructurings		$ 8,387,000		$ 9,315,000
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Number of Loans | loan	3		3
Recorded Investment, Pre-Modification	$ 516,000		$ 516,000
Recorded Investment, Post-Modification	$ 516,000		$ 516,000
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Number of Loans | loan	1		2
Recorded Investment, Pre-Modification	$ 107,000		$ 392,000
Recorded Investment, Post-Modification	$ 107,000		$ 392,000
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Number of Loans | loan	1		1
Recorded Investment, Pre-Modification	$ 170,000		$ 170,000
Recorded Investment, Post-Modification	$ 170,000		$ 170,000

LOANS AND THE ALLOWANCE FOR _10

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Accretable Yield For Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Changes in accretable yield for loans acquired with deteriorated credit quality
Beginning balance	$ 1,510	$ 1,710	$ 1,662	$ 2,101
Reclassification from non-accretable difference	38	271	46	407
Accretion income	(170)	(348)	(330)	(875)
Ending balance	$ 1,378	$ 1,633	$ 1,378	$ 1,633

LOAN SERVICING - Mortgage Servi

LOAN SERVICING - Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Beginning balance	$ 6,347	$ 9,916	$ 8,518
Capitalized servicing rights	560	216
Attributable to payments and principal reductions	(791)	(438)
Attributable to changes in valuation inputs and assumptions	(277)	(898)
Fair value adjustment	1,068	1,336
Ending balance	5,839	8,796	5,839	$ 8,796	$ 8,518
Mortgage Loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Beginning balance			8,518	10,918	10,918
Capitalized servicing rights			774	376
Attributable to payments and principal reductions			(1,194)	(744)
Attributable to changes in valuation inputs and assumptions			(2,259)	(1,754)
Fair value adjustment			3,453	2,498
Ending balance	$ 5,839	$ 8,796	5,839	$ 8,796	8,518
Mortgage loans serviced for others			$ 1,085,926		$ 1,152,535

FORECLOSED ASSETS - Activity (D

FORECLOSED ASSETS - Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2020
FORECLOSED ASSETS
Beginning balance	$ 4,469	$ 10,151	$ 5,099	$ 9,559	$ 5,099
Transfers from loans	308	353	327	1,761
Capitalized improvements	6				$ 6
Proceeds from sales	(324)	(458)	(1,001)	(969)
Sales through loan origination	(67)	(91)	(67)	(360)
Net gain (loss) on sales	69	16	144	105
Direct write-downs	(11)	(264)	(58)	(389)
Ending balance	$ 4,450	$ 9,707	$ 4,450	$ 9,707

FORECLOSED ASSETS - Gains (loss

FORECLOSED ASSETS - Gains (losses) on Foreclosed Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
FORECLOSED ASSETS
Direct write-downs	$ (11)	$ (264)	$ (58)	$ (389)
Net gain (loss) on sales	69	16	144	105
Guarantee reimbursements		42	7	61
Gain on settlement		375		375
Gains (losses) on foreclosed assets	$ 58	$ 169	$ 93	$ 152

FORECLOSED ASSETS - Additional

FORECLOSED ASSETS - Additional Information (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020USD ($)loan	Dec. 31, 2019USD ($)loan	Mar. 31, 2020USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)
FORECLOSED ASSETS
Carrying value of foreclosed asset	$ 4,450	$ 5,099	$ 4,469	$ 9,707	$ 10,151	$ 9,559
One-to-four family residential real estate property
FORECLOSED ASSETS
Carrying value of foreclosed asset	$ 1,034	$ 1,037
Number of loans in the process of foreclosure | loan	9	10
Loan amount in the process of foreclosure	$ 594	$ 588

DEPOSITS - Interest bearing Dep

DEPOSITS - Interest bearing Deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
DEPOSITS
Noninterest-bearing Deposit Liabilities	$ 856,030	$ 689,116
Interest-bearing demand	880,007	814,639
Money market	480,497	477,765
Savings	487,761	438,927
Deposits of executive officers, directors, significant shareholders	310,818	356,408
Total interest-bearing deposits	2,159,083	2,087,739
Total deposits	$ 3,015,113	$ 2,776,855

DEPOSITS - Interest bearing D_2

DEPOSITS - Interest bearing Deposits - Narrative (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
DEPOSITS
Reciprocal transaction deposits, Money market deposits	$ 7,798	$ 14,309
Reciprocal transaction deposits, Time deposits	3,679	3,538
Time deposits in denominations of $250,000 or more	24,602	44,754
Time deposits in denominations of $100,000 or more	101,136	130,293
Deposits of executive officers, directors, significant shareholders	$ 310,818	$ 356,408

DEPOSITS - Interest expense on

DEPOSITS - Interest expense on Deposits (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
DEPOSITS
Interest-bearing demand	$ 162	$ 411	$ 413	$ 828
Money market	118	489	512	859
Savings	50	69	120	137
Time	712	1,142	1,592	2,270
Total interest expense on deposits	$ 1,042	$ 2,111	$ 2,637	$ 4,094

BORROWINGS (Details)

BORROWINGS (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
BORROWINGS
Borrowings	$ 0	$ 0
Loans pledged, served as collateral	535,798	548,229
Loans pledged in association with Mortgage Partnership Finance Program	355	355
FRB Line of credit
BORROWINGS
Borrowings	0	0
Loans pledged, served as collateral	$ 515	$ 515

SUBORDINATED DEBENTURES (Detail

SUBORDINATED DEBENTURES (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)subsidiary	Dec. 31, 2019USD ($)
SUBORDINATED DEBENTURES
Number of subsidiary business trusts | subsidiary	5
Subordinated debentures	$ 37,616	$ 37,583
Heartland Bancorp, Inc. Capital Trust B
SUBORDINATED DEBENTURES
Subordinated debentures	10,310	10,310
Heartland Bancorp, Inc. Capital Trust C
SUBORDINATED DEBENTURES
Subordinated debentures	10,310	10,310
Heartland Bancorp, Inc. Capital Trust D
SUBORDINATED DEBENTURES
Subordinated debentures	5,155	5,155
FFBI Capital Trust I
SUBORDINATED DEBENTURES
Subordinated debentures	7,217	7,217
National Bancorp Statutory Trust I
SUBORDINATED DEBENTURES
Subordinated debentures	$ 4,624	$ 4,591

SUBORDINATED DEBENTURES - Inter

SUBORDINATED DEBENTURES - Interest rate and maturities (Details)	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Heartland Bancorp, Inc. Capital Trust B
SUBORDINATED DEBENTURES
Interest Rate	3.97%	4.74%
Heartland Bancorp, Inc. Capital Trust B | LIBOR
SUBORDINATED DEBENTURES
Spread on interest rate basis	2.75%
Heartland Bancorp, Inc. Capital Trust C
SUBORDINATED DEBENTURES
Interest Rate	1.84%	3.42%
Heartland Bancorp, Inc. Capital Trust C | LIBOR
SUBORDINATED DEBENTURES
Spread on interest rate basis	1.53%
Heartland Bancorp, Inc. Capital Trust D
SUBORDINATED DEBENTURES
Interest Rate	1.66%	3.24%
Heartland Bancorp, Inc. Capital Trust D | LIBOR
SUBORDINATED DEBENTURES
Spread on interest rate basis	1.35%
FFBI Capital Trust I
SUBORDINATED DEBENTURES
Interest Rate	4.02%	4.79%
FFBI Capital Trust I | LIBOR
SUBORDINATED DEBENTURES
Spread on interest rate basis	2.80%
National Bancorp Statutory Trust I
SUBORDINATED DEBENTURES
Interest Rate	3.21%	4.79%
National Bancorp Statutory Trust I | LIBOR
SUBORDINATED DEBENTURES
Spread on interest rate basis	2.90%

SUBORDINATED DEBENTURES - Narra

SUBORDINATED DEBENTURES - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)period
SUBORDINATED DEBENTURES
Maximum deferred interest period quarters | period	10
Period shorten the maturity date from the event	90 days
Trust preferred securities qualified as Tier 1 capital	100.00%
National Bancorp Statutory Trust I
SUBORDINATED DEBENTURES
Contractual obligation | $	$ 5,773

DERIVATIVE FINANCIAL INSTRUME_3

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Mar. 31, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
Cash pledged	$ 1,630,000	$ 710,000
Securities pledged	$ 23,804,000	$ 8,713,000
Interest rate swap | Cash flow hedge | Variable-rate borrowings
DERIVATIVE FINANCIAL INSTRUMENTS
Notional amount			$ 10,000,000

DERIVATIVE FINANCIAL INSTRUME_4

DERIVATIVE FINANCIAL INSTRUMENTS - Derivative instrument assets and liabilities (Details) - Designated - Interest rate swap - Cash flow hedge - Other liabilities - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative financial liability fair value	$ (1,674)	$ (676)
Derivative financial liability notional amount	$ 17,000	$ 17,000

DERIVATIVE FINANCIAL INSTRUME_5

DERIVATIVE FINANCIAL INSTRUMENTS - Interest rate contracts designated as cash flow hedges (Details) - Cash flow hedge - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income	$ (39)	$ 22	$ (41)	$ 52
Taxable loan interest income
DERIVATIVE FINANCIAL INSTRUMENTS
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income	32	20	64	50
Subordinated debentures interest expense
DERIVATIVE FINANCIAL INSTRUMENTS
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income	$ (71)	$ 2	$ (105)	$ 2

DERIVATIVE FINANCIAL INSTRUME_6

DERIVATIVE FINANCIAL INSTRUMENTS - Interest rate contracts not designated as hedging instruments (Details) - Not designated - Interest rate swap - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
Gross gains	$ 1,610	$ 4,876	$ 15,181	$ 6,045
Gross losses	(1,610)	(4,839)	(15,181)	(6,008)
Net gains (losses)		$ 37		$ 37
Other assets
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount	142,062		142,062		$ 138,356
Derivative financial assets fair value	22,965		22,965		8,642
Other assets | Commercial Borrower
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount	142,062		142,062		114,140
Derivative financial assets fair value	22,965		22,965		8,532
Other assets | Financial Institutions Borrower
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount					24,216
Derivative financial assets fair value					110
Other liabilities
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative liability notional amount	142,062		142,062		138,356
Derivative financial liabilities fair value	(22,965)		(22,965)		(8,642)
Other liabilities | Commercial Borrower
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative liability notional amount					24,216
Derivative financial liabilities fair value					(110)
Other liabilities | Financial Institutions Borrower
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative liability notional amount	142,062		142,062		114,140
Derivative financial liabilities fair value	$ (22,965)		$ (22,965)		$ (8,532)

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance	$ 339,813	$ 328,593	$ 332,918	$ 340,396
Other comprehensive income (loss), before tax	6,502	6,424	13,127	11,724
Income tax expense (benefit)	1,860		3,748
Other comprehensive income (loss), after tax	4,642	6,424	9,379	11,724
Balance	347,840	339,870	347,840	339,870
Accumulated Other Comprehensive Income (Loss)
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance	12,569	1,012	7,832	(4,288)
Other comprehensive income (loss) before reclassifications	6,457	6,523	13,089	11,935
Reclassifications	45	(99)	38	(211)
Other comprehensive income (loss), before tax	6,502		13,127
Income tax expense (benefit)	1,860		3,748
Other comprehensive income (loss), after tax	4,642	6,424	9,379	11,724
Balance	17,211	7,436	17,211	7,436
Unrealized gains (losses) on available-for-sale securities
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance	14,095	1,095	8,659	(4,561)
Other comprehensive income (loss) before reclassifications	6,590	6,968	14,192	12,624
Other comprehensive income (loss), before tax	6,590		14,192
Income tax expense (benefit)	1,879		4,045
Other comprehensive income (loss), after tax	4,711	6,968	10,147	12,624
Balance	18,806	8,063	18,806	8,063
Unrealized gains (losses) on held-to-maturity securities
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance	(138)	40	(131)	122
Reclassifications	6	(77)	(3)	(159)
Other comprehensive income (loss), before tax	6		(3)
Income tax expense (benefit)	1		(1)
Other comprehensive income (loss), after tax	5	(77)	(2)	(159)
Balance	(133)	(37)	(133)	(37)
Derivatives
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance	(1,388)	(123)	(696)	151
Other comprehensive income (loss) before reclassifications	(133)	(445)	(1,103)	(689)
Reclassifications	39	(22)	41	(52)
Other comprehensive income (loss), before tax	(94)		(1,062)
Income tax expense (benefit)	(20)		(296)
Other comprehensive income (loss), after tax	(74)	(467)	(766)	(741)
Balance	$ (1,462)	$ (590)	$ (1,462)	$ (590)

INCOME TAXES - Allocation (Deta

INCOME TAXES - Allocation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Current
Federal	$ 977		$ 2,698
State	637	$ 305	1,625	$ 520
Total current	1,614	305	4,323	520
Deferred
Federal	580		123
State	283		62
Total deferred	863		185
Income tax expense	$ 2,477	$ 305	$ 4,508	$ 520

INCOME TAXES - Federal income t

INCOME TAXES - Federal income tax (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Federal income tax expense:
Federal income tax, at statutory rate	$ 2,078		$ 3,811
Federal income tax, at statutory rate (as a percent)	21.00%		21.00%
Increase (decrease) resulting from:
Federally tax exempt interest income	$ (370)		$ (727)
Federally tax exempt interest income (as a percent)	(3.70%)		(4.00%)
State taxes, net of federal benefit	$ 727	$ 305	$ 1,358	$ 520
State taxes, net of federal benefit (as a percent)	7.30%	2.00%	7.50%	1.50%
Other	$ 42		$ 66
Other (as a percent)	0.40%		0.30%
Income tax expense	$ 2,477	$ 305	$ 4,508	$ 520
Total (as a percent)	25.00%	2.00%	24.80%	1.50%

INCOME TAXES - Components of ne

INCOME TAXES - Components of net deferred tax asset (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Deferred tax assets
Allowance for loan losses	$ 8,398	$ 6,309
Compensation related	2,035	5,859
Deferred loan fees	2,156	497
Nonaccrual interest	668	858
Foreclosed assets	65	574
Goodwill	434	531
Other	1,099	785
Total deferred tax assets	14,855	15,413
Deferred tax liabilities
Fixed asset depreciation	4,380	4,201
Mortgage servicing rights	1,665	2,428
Other purchase accounting adjustments	1,273	1,356
Intangible assets	709	841
Prepaid assets	678	504
Net unrealized gain on debt securities available-for-sale	6,296	2,251
Other	381	426
Total deferred tax liabilities	15,382	12,007
Net deferred tax asset (liability)	$ (527)
Net deferred tax asset (liability)		$ 3,406

EARNINGS PER SHARE (Details)

EARNINGS PER 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 SHARE
Antidilutive securities excluded from the computation of diluted earnings per share		0		0
Numerator:
Net income	$ 7,419	$ 14,605	$ 13,640	$ 33,341
Earnings allocated to unvested restricted stock units	(19)		(34)
Numerator for earnings per share - basic	$ 7,400	$ 14,605	$ 13,606	$ 33,341
Denominator:
Weighted average common shares outstanding	27,457,306	18,027,512	27,457,306	18,027,512
Weighted average common shares outstanding, including all dilutive potential shares	27,457,306	18,027,512	27,457,306	18,027,512
EARNINGS PER SHARE - BASIC	$ 0.27	$ 0.81	$ 0.50	$ 1.85
EARNINGS PER SHARE - DILUTED	$ 0.27	$ 0.81	$ 0.50	$ 1.85

DEFERRED COMPENSATION (Details)

DEFERRED COMPENSATION (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
DEFERRED COMPENSATION
Deferred compensation liability	$ 0		$ 0
Deferred compensation expense			$ 1,660	$ 3,565
SERP
DEFERRED COMPENSATION
Deferred compensation liability					$ 12,789
Deferred compensation expense	$ 690	$ 3,440
Period over which SERP benefit payments to be paid			30 years

STOCK-BASED COMPENSATION PLAN_2

STOCK-BASED COMPENSATION PLANS (Details) $ / shares in Units, $ in Thousands	Jun. 24, 2020USD ($)$ / sharesshares	Jan. 28, 2020USD ($)$ / sharesshares	Jun. 30, 2020USD ($)item$ / sharesshares	Jun. 30, 2020USD ($)iteminstallment$ / sharesshares	Jun. 30, 2019USD ($)$ / sharesshares	Mar. 31, 2020$ / shares	Dec. 31, 2019USD ($)$ / shares	Oct. 09, 2019shares	Mar. 31, 2019$ / shares	Dec. 31, 2018$ / shares
STOCK-BASED COMPENSATION PLANS
Number of shares participant is entitled to receive | item			1	1
Total stock-based compensation expense (benefit)			$ 203	$ (65)	$ (115)
Stock appreciation rights plan liability recorded for the outstanding units			$ 0	$ 0
Restricted Stock Units
STOCK-BASED COMPENSATION PLANS
Granted (in units) | shares			550	73,700
Granted (in dollars per unit) | $ / shares			$ 12.71	$ 18.98
Total stock-based compensation expense (benefit)			$ 96	$ 163
Unrecognized compensation cost related to non-vested stock-based compensation agreements			$ 1,236	$ 1,236
Outstanding (in dollars per unit) | $ / shares			$ 18.98	$ 18.98		$ 19.03
Restricted Stock Units | Key employees
STOCK-BASED COMPENSATION PLANS
Shares granted | shares		70,400
Vesting period		4 years
Restricted Stock Units | Non employee directors
STOCK-BASED COMPENSATION PLANS
Shares granted | shares	550	2,750
Granted (in dollars per unit) | $ / shares	$ 12.71	$ 19.03
Fair value of units granted	$ 7	$ 1,392
Stock Appreciation Rights
STOCK-BASED COMPENSATION PLANS
Granted (in units) | shares
Total stock-based compensation expense (benefit)			$ 107	$ (228)	$ (115)
Unrecognized compensation cost related to non-vested stock-based compensation agreements			51	$ 51
Number of installments | installment				4
Stock appreciation rights plan liability recorded for the outstanding units			181	$ 181			$ 409
Stock appreciation rights plan liability recorded for the previously exercised units			$ 1,206	$ 1,206			$ 1,512
Number of equal annual instalments in which the liability recorded for previously exercised units will be paid | installment				4
Outstanding (in dollars per unit) | $ / shares			$ 16.32	$ 16.32	$ 7.46	$ 16.32	$ 16.32		$ 5.73	$ 5.73
Omnibus Incentive Plan
STOCK-BASED COMPENSATION PLANS
Authorized number of shares | shares								1,820,000

STOCK-BASED COMPENSATION PLAN_3

STOCK-BASED COMPENSATION PLANS - Summary (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Restricted Stock Units
Stock Appreciation Rights
Outstanding (in units)	73,150
Granted (in units)	550		73,700
Outstanding (in units)	73,700		73,700
Weighted Average Grant Date Assigned Value
Outstanding (in dollars per unit)	$ 19.03
Granted (in dollars per unit)	12.71		$ 18.98
Outstanding (in dollars per unit)	$ 18.98		$ 18.98
Restricted Stock Units | $12.71
Stock Appreciation Rights
Outstanding (in units)	550		550
Weighted Average Grant Date Assigned Value
Outstanding (in dollars per unit)	$ 12.71		$ 12.71
Weighted average remaining contractual term			7 months 6 days
Restricted Stock Units | $19.03
Stock Appreciation Rights
Outstanding (in units)	73,150		73,150
Weighted Average Grant Date Assigned Value
Outstanding (in dollars per unit)	$ 19.03		$ 19.03
Weighted average remaining contractual term			3 years 6 months
Stock Appreciation Rights
Stock Appreciation Rights
Outstanding (in units)	110,160	91,800	110,160	91,800
Granted (in units)
Vested (in units)		(48,960)		(48,960)
Outstanding (in units)	110,160	42,840	110,160	42,840
Exercisable (in shares)	79,560		79,560
Weighted Average Grant Date Assigned Value
Outstanding (in dollars per unit)	$ 16.32	$ 5.73	$ 16.32	$ 5.73
Vested (in dollars per unit)		4.21		4.21
Outstanding (in dollars per unit)	$ 16.32	$ 7.46	$ 16.32	$ 7.46
Weighted average remaining contractual term			9 years 2 months 12 days

STOCK-BASED COMPENSATION PLAN_4

STOCK-BASED COMPENSATION PLANS - Summary of assumptions used (Details) - Stock Appreciation Rights	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	0.61%	1.90%
Expected volatility	34.32%	28.83%
Expected life (in years)	9 years 2 months 12 days	9 years 8 months 12 days
Expected dividend yield	4.50%	3.16%

REGULATORY MATTERS (Details)

REGULATORY MATTERS (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
REGULATORY MATTERS
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	2.5	2.5
Heartland Bank
REGULATORY MATTERS
Total Capital (to Risk Weighted Assets), Actual Amount	$ 327,109	$ 315,516
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	180,224	180,071
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	225,280	225,088
Tier 1 Capital (to Risk Weighted Assets), Actual Amount	299,935	295,385
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	135,168	135,053
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	180,224	180,071
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount	299,935	295,385
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	101,376	101,290
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	146,432	146,307
Tier 1 Capital (to Average Assets), Actual Amount	299,935	295,385
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount	122,741	115,281
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 153,426	$ 144,102
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	14.52	14.02
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	8	8
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	10	10
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	13.31	13.12
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	6	6
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	8	8
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	13.31%	13.12%
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.50%	4.50%
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	6.50%	6.50%
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent)	9.77	10.25
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent)	4	4
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	5	5
Lincoln Bank
REGULATORY MATTERS
Total Capital (to Risk Weighted Assets), Actual Amount	$ 35,891	$ 35,390
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	15,444	16,104
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	19,305	20,130
Tier 1 Capital (to Risk Weighted Assets), Actual Amount	33,477	33,222
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	11,583	12,078
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	15,444	16,104
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount	33,477	33,222
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	8,687	9,058
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	12,548	13,084
Tier 1 Capital (to Average Assets), Actual Amount	33,477	33,222
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount	13,488	13,531
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 16,861	$ 16,914
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	18.59	17.58
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	8	8
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	10	10
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	17.34	16.50
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	6	6
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	8	8
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	17.34%	16.50%
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.50%	4.50%
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	6.50%	6.50%
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent)	9.93	9.82
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent)	4	4
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	5	5
Consolidated HBT
REGULATORY MATTERS
Total Capital (to Risk Weighted Assets), Actual Amount	$ 370,484	$ 356,994
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	195,840	196,358
Tier 1 Capital (to Risk Weighted Assets), Actual Amount	340,761	334,695
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	146,880	147,268
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount	304,310	298,277
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	110,160	110,451
Tier 1 Capital (to Average Assets), Actual Amount	340,761	334,695
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount	$ 136,357	$ 129,027
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	15.13	14.54
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	8	8
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	13.92	13.64
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	6	6
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	12.43%	12.15%
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.50%	4.50%
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent)	10	10.38
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent)	4	4

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring basis (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
FAIR VALUE OF FINANCIAL INSTRUMENTS
Transfer of assets from level 1 to level 2	$ 0	$ 0	$ 0	$ 0
Transfer of assets from level 2 to level 1	0	0	0	0
Transfer of assets in to level 3	0	0	0	0
Transfer of assets out of level 3	0	0	0	0
Transfer of liabilities from level 1 to level 2	0	0	0	0
Transfer of liabilities from level 2 to level 1	0	0	0	0
Debt securities available-for-sale, at fair value	701,353		701,353			$ 592,404
Equity securities	3,263		3,263			3,241
Fair value	5,839	$ 8,796	5,839	$ 8,796	$ 6,347	8,518	$ 9,916
U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	78,935		78,935			49,615
Municipal securities
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	198,310		198,310			133,738
Mortgage-backed: Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	216,869		216,869			200,678
Mortgage-backed: Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	138,149		138,149			134,954
Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	69,090		69,090			73,419
Recurring
FAIR VALUE OF FINANCIAL INSTRUMENTS
Equity securities	3,263		3,263			3,241
Fair value	5,839		5,839			8,518
Derivative financial assets fair value	22,965		22,965			8,642
Derivative financial liabilities fair value	24,639		24,639			9,318
Recurring | U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	78,935		78,935			49,615
Recurring | Municipal securities
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	198,310		198,310			133,738
Recurring | Mortgage-backed: Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	216,869		216,869			200,678
Recurring | Mortgage-backed: Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	138,149		138,149			134,954
Recurring | Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	69,090		69,090			73,419
Recurring | Level 1
FAIR VALUE OF FINANCIAL INSTRUMENTS
Equity securities	3,263		3,263			3,241
Recurring | Level 2
FAIR VALUE OF FINANCIAL INSTRUMENTS
Derivative financial assets fair value	22,965		22,965			8,642
Derivative financial liabilities fair value	24,639		24,639			9,318
Recurring | Level 2 | U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	78,935		78,935			49,615
Recurring | Level 2 | Municipal securities
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	198,310		198,310			133,738
Recurring | Level 2 | Mortgage-backed: Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	216,869		216,869			200,678
Recurring | Level 2 | Mortgage-backed: Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	138,149		138,149			134,954
Recurring | Level 2 | Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	69,090		69,090			73,419
Recurring | Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value	$ 5,839		$ 5,839			$ 8,518

FAIR VALUE OF FINANCIAL INSTR_4

FAIR VALUE OF FINANCIAL INSTRUMENTS - Mortgage Servicing Rights (Details) $ in Thousands	Jun. 30, 2020USD ($)	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value	$ 5,839	$ 6,347	$ 8,518	$ 8,796	$ 9,916
Recurring
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value	5,839		8,518
Recurring | Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value	$ 5,839		$ 8,518
Valuation Technique	us-gaap:ValuationTechniqueDiscountedCashFlowMember		us-gaap:ValuationTechniqueDiscountedCashFlowMember
Recurring | Level 3 | Constant pre-payment rates (CPR)
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value	$ 5,839		$ 8,518
Recurring | Level 3 | Constant pre-payment rates (CPR) | Minimum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	7		7
Recurring | Level 3 | Constant pre-payment rates (CPR) | Maximum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	77.3		68.5
Recurring | Level 3 | Constant pre-payment rates (CPR) | Weighted average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	16.5		12.3
Recurring | Level 3 | Discount rate | Minimum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	9		9
Recurring | Level 3 | Discount rate | Maximum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	11		11
Recurring | Level 3 | Discount rate | Weighted average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	9		9

FAIR VALUE OF FINANCIAL INSTR_5

FAIR VALUE OF FINANCIAL INSTRUMENTS - Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	$ 25,934	$ 4,531
Collateral-dependent impaired loans	12,204	15,811
Bank premises held for sale	121	121
Foreclosed assets	4,450	5,099
Level 2
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	25,934	4,531
Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Collateral-dependent impaired loans	12,204	15,811
Bank premises held for sale	121	121
Foreclosed assets	$ 4,450	$ 5,099

FAIR VALUE OF FINANCIAL INSTR_6

FAIR VALUE OF FINANCIAL INSTRUMENTS - Unobservable inputs used in nonrecurring measurements (Details) - Nonrecurring - Level 3 $ in Thousands	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Collateral-dependent impaired loans
FAIR VALUE OF FINANCIAL INSTRUMENTS
Alternative Investment, Measurement Input [Extensible List]	hbt:AppraisalAdjustmentsMember	hbt:AppraisalAdjustmentsMember
Collateral-dependent impaired loans | Appraisal of collateral
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 12,204	$ 15,811
Bank premises held for sale
FAIR VALUE OF FINANCIAL INSTRUMENTS
Alternative Investment, Measurement Input [Extensible List]	hbt:AppraisalAdjustmentsMember	hbt:AppraisalAdjustmentsMember
Bank premises held for sale | Appraisal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 121	$ 121
Measurement input	7	7
Bank premises held for sale | Appraisal | Weighted average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	7	7
Foreclosed assets
FAIR VALUE OF FINANCIAL INSTRUMENTS
Alternative Investment, Measurement Input [Extensible List]	hbt:AppraisalAdjustmentsMember	hbt:AppraisalAdjustmentsMember
Foreclosed assets | Appraisal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 4,450	$ 5,099
Measurement input	7	7
Foreclosed assets | Appraisal | Weighted average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	7	7

FAIR VALUE OF FINANCIAL INSTR_7

FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying amount and estimated fair value (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Financial assets:
Debt securities held-to-maturity	$ 78,317	$ 90,529
Level 1 | Carrying Amount
Financial assets:
Cash and cash equivalents	314,365	283,971
Interest-bearing time deposits with banks		248
Level 1 | Estimated Fair Value
Financial assets:
Cash and cash equivalents	314,365	283,971
Interest-bearing time deposits with banks		248
Level 2 | Carrying Amount
Financial assets:
Debt securities held-to-maturity	73,823	88,477
Accrued interest receivable	12,661	13,951
Financial liabilities:
Securities sold under agreements to repurchase	51,354	44,433
Accrued interest payable	821	1,132
Level 2 | Estimated Fair Value
Financial assets:
Debt securities held-to-maturity	78,317	90,529
Accrued interest receivable	12,661	13,951
Financial liabilities:
Securities sold under agreements to repurchase	51,354	44,433
Accrued interest payable	821	1,132
Level 3 | Carrying Amount
Financial assets:
Restricted stock	2,498	2,425
Loans, net	2,246,072	2,141,527
Investments in unconsolidated subsidiaries	1,165	1,165
Financial liabilities:
Time deposits	310,818	356,408
Subordinated debentures	37,616	37,583
Level 3 | Estimated Fair Value
Financial assets:
Restricted stock	2,498	2,425
Loans, net	2,259,411	2,181,103
Investments in unconsolidated subsidiaries	1,165	1,165
Financial liabilities:
Time deposits	312,873	355,340
Subordinated debentures	$ 31,507	$ 31,959

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Standby letters of credit
COMMITMENTS AND CONTINGENCIES
Financial instruments off-balance sheet credit risks	$ 9,649	$ 8,991
Commitments to extend credit
COMMITMENTS AND CONTINGENCIES
Financial instruments off-balance sheet credit risks	$ 536,489	$ 542,705