Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 26, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 001-38280 | |
Entity Registrant Name | CBTX, Inc. | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 20-8339782 | |
Entity Address, Address Line One | 9 Greenway Plaza, Suite 110 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77046 | |
City Area Code | 713 | |
Local Phone Number | 210-7600 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | CBTX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 24,593,071 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001473844 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash and due from banks | $ 49,709 | $ 46,814 |
Interest-bearing deposits at other financial institutions | 738,700 | 491,193 |
Total cash and cash equivalents | 788,409 | 538,007 |
Securities | 309,233 | 237,281 |
Equity investments | 16,793 | 18,652 |
Loans held for sale | 808 | 2,673 |
Loans, net of allowance for credit losses of $37,183 and $40,637 at June 30, 2021 and December 31, 2020, respectively | 2,692,313 | 2,883,480 |
Premises and equipment, net of accumulated depreciation of $37,460 and $35,826 at June 30, 2021 and December 31, 2020, respectively | 59,987 | 61,152 |
Goodwill | 80,950 | 80,950 |
Other intangible assets, net of accumulated amortization of $16,984 and $16,607 at June 30, 2021 and December 31, 2020, respectively | 3,846 | 4,171 |
Bank-owned life insurance | 73,118 | 72,338 |
Operating lease right-to-use assets | 12,514 | 13,285 |
Deferred tax assets, net | 9,755 | 10,700 |
Other assets | 18,808 | 26,528 |
Total assets | 4,066,534 | 3,949,217 |
Liabilities: | ||
Noninterest-bearing deposits | 1,556,784 | 1,476,425 |
Interest-bearing deposits | 1,860,002 | 1,825,369 |
Total deposits | 3,416,786 | 3,301,794 |
Federal Home Loan Bank advances | 50,000 | 50,000 |
Operating lease liabilities | 15,590 | 16,447 |
Other liabilities | 27,931 | 34,525 |
Total liabilities | 3,510,307 | 3,402,766 |
Commitments and contingencies (Note 16) | ||
Shareholders' equity: | ||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued | ||
Common stock, $0.01 par value, 90,000,000 shares authorized, 25,296,385 and 25,458,816 shares issued at June 30, 2021 and December 31, 2020, respectively; 24,450,397 and 24,612,828 shares outstanding at June 30, 2021 and December 31, 2020, respectively | 253 | 255 |
Additional paid-in capital | 335,399 | 339,334 |
Retained earnings | 229,785 | 214,456 |
Treasury stock, at cost, 845,988 shares held at both June 30, 2021 and December 31, 2020, respectively | (14,369) | (14,369) |
Accumulated other comprehensive income, net of tax of $1,371 and $1,801 at June 30, 2021 and December 31, 2020, respectively | 5,159 | 6,775 |
Total shareholders' equity | 556,227 | 546,451 |
Total liabilities and shareholders' equity | $ 4,066,534 | $ 3,949,217 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Condensed Consolidated Balance Sheets (Unaudited) | ||
Allowance for credit losses on loans | $ 37,183 | $ 40,637 |
Premises and equipment, accumulated depreciation | 37,460 | 35,826 |
Other intangible assets, accumulated amortization | $ 16,984 | $ 16,607 |
Preferred stock par value | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 25,296,385 | 25,458,816 |
Common stock, shares outstanding | 24,450,397 | 24,612,828 |
Treasury stock, shares | 845,988 | 845,988 |
Accumulated other comprehensive gain, tax | $ 1,371 | $ 1,801 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest income | ||||
Interest and fees on loans | $ 30,793 | $ 32,857 | $ 63,958 | $ 66,474 |
Securities | 1,332 | 1,228 | 2,505 | 2,591 |
Interest-bearing deposits at other financial institutions | 223 | 169 | 400 | 1,224 |
Equity investments | 158 | 171 | 304 | 347 |
Total interest income | 32,506 | 34,425 | 67,167 | 70,636 |
Interest expense | ||||
Deposits | 1,267 | 2,022 | 2,617 | 5,788 |
Federal Home Loan Bank advances | 221 | 240 | 442 | 461 |
Other interest-bearing liabilities | 5 | 9 | ||
Total interest expense | 1,488 | 2,267 | 3,059 | 6,258 |
Net interest income | 31,018 | 32,158 | 64,108 | 64,378 |
Provision (recapture) for credit losses: | ||||
Provision (recapture) for credit losses for loans | (4,190) | 8,537 | (3,904) | 13,276 |
Provision (recapture) for credit losses for unfunded commitments | (893) | 1,333 | (767) | 1,643 |
Total provision (recapture) for credit losses | (5,083) | 9,870 | (4,671) | 14,919 |
Net interest income after provision (recapture) for credit losses | 36,101 | 22,288 | 68,779 | 49,459 |
Noninterest income | ||||
Total noninterest income | 3,491 | 2,909 | 6,602 | 7,236 |
Noninterest expense | ||||
Salaries and employee benefits | 14,734 | 14,012 | 28,922 | 28,235 |
Occupancy expense | 2,597 | 2,558 | 5,118 | 4,982 |
Professional and director fees | 2,441 | 1,541 | 4,144 | 2,693 |
Data processing and software | 1,661 | 1,292 | 3,237 | 2,514 |
Regulatory fees | 501 | 476 | 1,057 | 579 |
Advertising, marketing and business development | 510 | 269 | 795 | 633 |
Telephone and communications | 550 | 392 | 1,013 | 811 |
Security and protection expense | 537 | 351 | 927 | 725 |
Amortization of intangibles | 186 | 230 | 377 | 451 |
Other expenses | 1,480 | 1,374 | 2,892 | 2,961 |
Total noninterest expense | 25,197 | 22,495 | 48,482 | 44,584 |
Net income before income tax expense | 14,395 | 2,702 | 26,899 | 12,111 |
Income tax expense | 2,692 | 539 | 5,177 | 2,407 |
Net income | $ 11,703 | $ 2,163 | $ 21,722 | $ 9,704 |
Earnings per common share | ||||
Basic | $ 0.48 | $ 0.09 | $ 0.89 | $ 0.39 |
Diluted | $ 0.48 | $ 0.09 | $ 0.88 | $ 0.39 |
Deposit account service charges | ||||
Noninterest income | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 1,167 | $ 1,095 | $ 2,360 | $ 2,580 |
Card interchange fees | ||||
Noninterest income | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,095 | 915 | 2,071 | 1,837 |
Earnings on bank-owned life insurance | ||||
Noninterest income | ||||
Revenue Not from Contract with Customer, Excluding Interest Income | 390 | 412 | 780 | 828 |
Net gain on sales of assets | ||||
Noninterest income | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 366 | 139 | 558 | 262 |
Other. | ||||
Noninterest income | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 473 | $ 348 | $ 833 | $ 1,729 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Condensed Consolidated Statements of Comprehensive Income (Unaudited) | ||||
Net income | $ 11,703 | $ 2,163 | $ 21,722 | $ 9,704 |
Change in unrealized gains (losses) on securities available for sale arising during the period | 2,292 | 313 | (2,047) | 5,336 |
Reclassification adjustments for net realized gains included in net income | 10 | |||
Change in related deferred income tax | (480) | (65) | 431 | (1,123) |
Other comprehensive income (loss), net of tax | 1,812 | 248 | (1,616) | 4,223 |
Total comprehensive income | $ 13,515 | $ 2,411 | $ 20,106 | $ 13,927 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders Equity (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained EarningsCumulative effect of accounting changes from adoption | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Cumulative effect of accounting changes from adoption | Total |
Beginning balance at Dec. 31, 2019 | $ 258 | $ 346,559 | $ 201,080 | $ (14,562) | $ 2,386 | $ 535,721 | ||
Beginning balance, shares at Dec. 31, 2019 | 25,837,048 | (857,346) | ||||||
Net income | 9,704 | 9,704 | ||||||
Dividends on common stock, $0.10 and $0.13 per share and $0.20 and $0.26 per share for the three and six months ended June 30, 2020 and 2021, respectively | (4,985) | (4,985) | ||||||
Stock-based compensation expense | 1,109 | 1,109 | ||||||
Vesting of restricted stock, net of shares withheld for employee tax liabilities | (44) | (44) | ||||||
Vesting of restricted stock, net of shares withheld for employee tax liabilities (in shares) | 12,853 | |||||||
Exercise of stock options, net of shares withheld for employee tax liabilities | (10) | $ 43 | 33 | |||||
Exercise of stock options, net of shares withheld for employee tax liabilities (in shares) | 2,524 | |||||||
Shares repurchased | $ (2) | (5,358) | (5,360) | |||||
Shares repurchased, Shares | (240,445) | |||||||
Other comprehensive income (loss), net of tax | 4,223 | 4,223 | ||||||
Ending balance at Jun. 30, 2020 | $ 256 | 342,256 | 202,754 | $ (14,519) | 6,609 | 537,356 | ||
Ending balance, shares at Jun. 30, 2020 | 25,609,456 | (854,822) | ||||||
Beginning balance at Mar. 31, 2020 | $ 256 | 341,713 | 203,080 | $ (14,536) | 6,361 | 536,874 | ||
Beginning balance, shares at Mar. 31, 2020 | 25,601,835 | (855,822) | ||||||
Net income | 2,163 | 2,163 | ||||||
Dividends on common stock, $0.10 and $0.13 per share and $0.20 and $0.26 per share for the three and six months ended June 30, 2020 and 2021, respectively | (2,489) | (2,489) | ||||||
Stock-based compensation expense | 552 | 552 | ||||||
Vesting of restricted stock, net of shares withheld for employee tax liabilities | (9) | (9) | ||||||
Vesting of restricted stock, net of shares withheld for employee tax liabilities (in shares) | 7,621 | |||||||
Exercise of stock options, net of shares withheld for employee tax liabilities | $ 17 | 17 | ||||||
Exercise of stock options, net of shares withheld for employee tax liabilities (in shares) | 1,000 | |||||||
Other comprehensive income (loss), net of tax | 248 | 248 | ||||||
Ending balance at Jun. 30, 2020 | $ 256 | 342,256 | 202,754 | $ (14,519) | 6,609 | 537,356 | ||
Ending balance, shares at Jun. 30, 2020 | 25,609,456 | (854,822) | ||||||
CECL implementation, net of deferred tax asset | $ (3,045) | $ (3,045) | ||||||
Beginning balance at Dec. 31, 2020 | $ 255 | 339,334 | 214,456 | $ (14,369) | 6,775 | 546,451 | ||
Beginning balance, shares at Dec. 31, 2020 | 25,458,816 | (845,988) | ||||||
Net income | 21,722 | 21,722 | ||||||
Dividends on common stock, $0.10 and $0.13 per share and $0.20 and $0.26 per share for the three and six months ended June 30, 2020 and 2021, respectively | (6,393) | (6,393) | ||||||
Stock-based compensation expense | 1,115 | 1,115 | ||||||
Vesting of restricted stock, net of shares withheld for employee tax liabilities | (84) | (84) | ||||||
Vesting of restricted stock, net of shares withheld for employee tax liabilities (in shares) | 18,658 | |||||||
Shares repurchased | $ (2) | (4,966) | (4,968) | |||||
Shares repurchased, Shares | (181,089) | |||||||
Other comprehensive income (loss), net of tax | (1,616) | (1,616) | ||||||
Ending balance at Jun. 30, 2021 | $ 253 | 335,399 | 229,785 | $ (14,369) | 5,159 | 556,227 | ||
Ending balance, shares at Jun. 30, 2021 | 25,296,385 | (845,988) | ||||||
Beginning balance at Mar. 31, 2021 | $ 253 | 334,839 | 221,279 | $ (14,369) | 3,347 | 545,349 | ||
Beginning balance, shares at Mar. 31, 2021 | 25,288,454 | (845,988) | ||||||
Net income | 11,703 | 11,703 | ||||||
Dividends on common stock, $0.10 and $0.13 per share and $0.20 and $0.26 per share for the three and six months ended June 30, 2020 and 2021, respectively | (3,197) | (3,197) | ||||||
Stock-based compensation expense | 574 | 574 | ||||||
Vesting of restricted stock, net of shares withheld for employee tax liabilities | (14) | (14) | ||||||
Vesting of restricted stock, net of shares withheld for employee tax liabilities (in shares) | 7,931 | |||||||
Other comprehensive income (loss), net of tax | 1,812 | 1,812 | ||||||
Ending balance at Jun. 30, 2021 | $ 253 | $ 335,399 | $ 229,785 | $ (14,369) | $ 5,159 | $ 556,227 | ||
Ending balance, shares at Jun. 30, 2021 | 25,296,385 | (845,988) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders Equity (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Condensed Consolidated Statements of Changes in Shareholders Equity (Unaudited) | ||||
Dividends on Common Stock | $ 0.13 | $ 0.10 | $ 0.26 | $ 0.20 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 21,722,000 | $ 9,704,000 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||
Provision (recapture) for credit losses | (4,671,000) | 14,919,000 |
Depreciation expense | 1,731,000 | 1,520,000 |
Amortization of intangibles | 377,000 | 451,000 |
Amortization of premiums on securities | 805,000 | 835,000 |
Amortization of lease right-to-use assets | 771,000 | 743,000 |
Accretion of lease liabilities | 199,000 | 249,000 |
Earnings on bank-owned life insurance | (780,000) | (828,000) |
Stock-based compensation expense | 1,115,000 | 1,109,000 |
Deferred income tax provision | 1,376,000 | (4,321,000) |
Net gain on sales of assets | (558,000) | (262,000) |
Net (earnings) loss on securities | 9,000 | (40,000) |
Change in operating assets and liabilities: | ||
Loans held for sale | 2,390,000 | 1,665,000 |
Other assets | 7,614,000 | (11,390,000) |
Other liabilities | (7,622,000) | 10,664,000 |
Total adjustments | 2,756,000 | 15,314,000 |
Net cash provided by operating activities | 24,478,000 | 25,018,000 |
Cash flows from investing activities: | ||
Purchases of securities | (412,971,000) | (329,452,000) |
Proceeds from sales, calls and maturities of securities | 303,155,000 | 303,005,000 |
Principal repayments of securities | 35,003,000 | 26,832,000 |
Net increase in loans | (294,088,000) | |
Net decrease in loans | 193,049,000 | |
Net sales (purchases) of loan participations | 22,000 | (1,934,000) |
Proceeds from sales of Small Business Administration loans | 2,000,000 | 508,000 |
Net contributions to equity investments | 1,859,000 | (1,659,000) |
Net purchases of premises and equipment | (591,000) | (1,374,000) |
Proceeds from sales of repossessed real estate and other assets | 112,000 | |
Net cash provided by (used) in investing activities | 121,638,000 | (298,162,000) |
Cash flows from financing activities: | ||
Net increase in noninterest-bearing deposits | 80,359,000 | 328,887,000 |
Net increase in interest-bearing deposits | 34,633,000 | 72,928,000 |
Net increase in securities sold under agreements to repurchase | 2,015,000 | |
Dividends paid on common stock | (5,654,000) | (4,979,000) |
Payments to tax authorities for stock-based compensation | (84,000) | (44,000) |
Proceeds from exercise of stock options | 33,000 | |
Repurchase of common stock | (4,968,000) | (5,360,000) |
Net cash provided by financing activities | 104,286,000 | 393,480,000 |
Net increase in cash, cash equivalents and restricted cash | 250,402,000 | 120,336,000 |
Cash, cash equivalents and restricted cash, beginning | 538,007,000 | 372,064,000 |
Cash, cash equivalents and restricted cash, ending | $ 788,409,000 | $ 492,400,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations CBTX, Inc., or the Company or CBTX, operates 35 branches, 19 in the Houston market area, 15 in the Beaumont/East Texas market area and one in Dallas, through its wholly-owned subsidiary, CommunityBank of Texas, N.A., or the Bank. The Bank provides relationship-driven commercial banking products and services primarily to small and mid-sized businesses and professionals with operations within the Bank’s markets. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and the Bank. All material intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or GAAP, but do not include all the information and footnotes required for complete consolidated financial statements. In management’s opinion, these interim unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s consolidated financial position at June 30, 2021 and December 31, 2020, consolidated results of operations and consolidated shareholders’ equity for the three and six months ended June 30, 2021 and 2020 and consolidated cash flows for the six months ended June 30, 2021 and 2020. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown in this report are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2020 included within the Company’s Annual Report on Form 10-K. Reclassification Share Repurchase Program Accounting Standards Recently Adopted If reference rates are discontinued, the existing contracts will be modified to replace the discontinued rate with a replacement rate. For accounting purposes, such contract modifications would have to be evaluated to determine whether the modified contract is a new contract or a continuation of an existing contract. If they are considered new contracts, the previous contract would be extinguished resulting in the acceleration of previously deferred fees and costs. Under one of the optional expedients of ASU 2020-04, modifications of contracts within the scope of Topic 310, Receivables, and 470, Debt, will be accounted for by prospectively adjusting the effective interest rates and no such evaluation is required. When elected, the optional expedient for contract modifications must be applied consistently for all eligible contracts or eligible transactions. The expedients and exceptions in this update are available to all entities starting March 12, 2020 through December 31, 2022. The Company began modifying LIBOR based loans during 2020 and applied the expedients and exceptions. The adoption of this ASU did not have a material effect on the Company, nor does the Company expect it to have a material effect in the future. Cash Flow Reporting As of June 30, 2021 and December 31, 2020, the Company had $4.3 million and $8.4 million, respectively, in cash held as collateral on deposit with other financial institution counterparties related to interest rate swap transactions. Reserves maintained with the Federal Reserve Bank and cash held as collateral for interest rate swap transactions are considered restricted cash. Supplemental disclosures of cash flow information were as follows for the periods indicated below: Six Months Ended June 30, (Dollars in thousands) 2021 2020 Supplemental disclosures of cash flow information: Cash paid for taxes $ 2,059 $ 3,707 Cash paid for interest 3,198 6,444 Supplemental disclosures of non-cash flow information: Operating lease right-to-use asset obtained in exchange for lease — 1,898 Change in liability for dividends accrued (739) (6) |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2021 | |
SECURITIES. | |
SECURITIES | NOTE 2: SECURITIES The amortized cost, related gross unrealized gains and losses and fair values of investments in securities as of the dates shown below were as follows: Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value June 30, 2021 Debt securities available for sale: State and municipal securities $ 122,667 $ 4,543 $ (103) $ 127,107 U.S. Treasury securities 11,882 79 — 11,961 U.S. agency securities: Callable debentures 3,000 2 — 3,002 Collateralized mortgage obligations 34,740 165 (316) 34,589 Mortgage-backed securities 129,232 2,662 (502) 131,392 Equity securities 1,183 — (1) 1,182 Total $ 302,704 $ 7,451 $ (922) $ 309,233 December 31, 2020 Debt securities available for sale: State and municipal securities $ 88,741 $ 4,296 $ — $ 93,037 U.S. agency securities: Collateralized mortgage obligations 35,085 347 (30) 35,402 Mortgage-backed securities 103,686 3,963 — 107,649 Equity securities 1,176 17 — 1,193 Total $ 228,688 $ 8,623 $ (30) $ 237,281 The amortized cost and estimated fair value of securities, by contractual maturities, as of the dates shown below were as follows: (Dollars in thousands) 1 Year or Less After 1 Year to 5 Years After 5 Years to 10 Years After 10 Years Total June 30, 2021 Amortized cost: Debt securities available for sale: State and municipal securities $ 986 $ — $ 9,405 $ 112,276 $ 122,667 U.S. Treasury securities — — 11,882 — 11,882 U.S. agency securities: Callable debentures — — 3,000 — 3,000 Collateralized mortgage obligations — — 4,559 30,181 34,740 Mortgage-backed securities 2 1,239 1,577 126,414 129,232 Equity securities 1,183 — — — 1,183 Total $ 2,171 $ 1,239 $ 30,423 $ 268,871 $ 302,704 Fair value: Debt securities available for sale: State and municipal securities $ 990 $ — $ 9,914 $ 116,203 $ 127,107 U.S. Treasury securities — — 11,961 — 11,961 U.S. agency securities: Callable debentures — — 3,002 — 3,002 Collateralized mortgage obligations — — 4,668 29,921 34,589 Mortgage-backed securities 2 1,305 1,673 128,412 131,392 Equity securities 1,182 — — — 1,182 Total $ 2,174 $ 1,305 $ 31,218 $ 274,536 $ 309,233 (Dollars in thousands) 1 Year or Less After 1 Year to 5 Years After 5 Years to 10 Years After 10 Years Total December 31, 2020 Amortized cost: Debt securities available for sale: State and municipal securities $ 509 $ 1,292 $ 9,154 $ 77,786 $ 88,741 U.S. agency securities: Collateralized mortgage obligations — — 4,910 30,175 35,085 Mortgage-backed securities 33 1,485 798 101,370 103,686 Equity securities 1,176 — — — 1,176 Total $ 1,718 $ 2,777 $ 14,862 $ 209,331 $ 228,688 Fair value: Debt securities available for sale: State and municipal securities $ 512 $ 1,298 $ 9,540 $ 81,687 $ 93,037 U.S. agency securities: Collateralized mortgage obligations — — 5,075 30,327 35,402 Mortgage-backed securities 33 1,565 829 105,222 107,649 Equity securities 1,193 — — — 1,193 Total $ 1,738 $ 2,863 $ 15,444 $ 217,236 $ 237,281 Actual maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. No securities were sold in the six months ended June 30, 2021 and 2020. At June 30, 2021 and December 31, 2020, securities with a carrying amount of $27.8 million and $27.3 million, respectively, were pledged to secure public deposits and for other purposes required or permitted by law. The Company considers qualitative factors in determining if an allowance for credit losses, or ACL, is necessary for those securities where the amortized cost basis exceeds the fair value. These factors include, among other things: (i) the extent to which the fair value was less than the amortized cost basis of the security and the length of time; (ii) the structure of the payments and likelihood that the issuer has the ability to make future payments; (iii) adverse conditions related to the security, industry or geographic area; (iv) changes in any credit ratings or financial conditions of the issuer; (v) failure by the issuer to make previous payments; and (vi) past events related to the security, current economic conditions and reasonable and supportable forecasts. Management did not believe that any of the securities the Company held at June 30, 2021 or December 31, 2020 were impaired due to reasons of credit quality and believed any unrealized losses were temporary. No ACL for available for sale securities was recorded in the Company’s condensed consolidated balance sheets at June 30, 2021 or during 2020. Amortized costs, as defined by GAAP, include acquisition costs, applicable accrued interest and accretion or amortization of premiums and discounts. The Company made a policy election to exclude accrued interest from amortized costs in the determination of ACL. The Company continues its policy of reversing previously accrued interest when it has been deemed uncollectible. Accrued interest receivable for securities was $1.4 million and $1.2 million at June 30, 2021 and December 31, 2020, respectively, and is included in other assets in the condensed consolidated balance sheets. The Company held 80 and 18 securities at June 30, 2021 and December 31, 2020, respectively, that were in a gross unrealized loss position. Securities with unrealized losses as of the dates shown below, aggregated by category and the length of time, were as follows: Less than Twelve Months Twelve Months or More Gross Gross Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses June 30, 2021 Debt securities available for sale: State and municipal securities $ 16,253 $ (103) $ — $ — U.S. Treasury securities — — — — U.S. agency securities: Callable debentures — — — — Collateralized mortgage obligations 20,184 (315) 107 (1) Mortgage-backed securities 40,748 (502) — — Equity securities 1,183 (1) — — $ 78,368 $ (921) $ 107 $ (1) December 31, 2020 Debt securities available for sale: State and municipal securities $ 263 $ — $ — $ — U.S. agency securities: Collateralized mortgage obligations 6,913 (30) — — Mortgage-backed securities — — — — Equity securities — — — — $ 7,176 $ (30) $ — $ — |
EQUITY INVESTMENTS
EQUITY INVESTMENTS | 6 Months Ended |
Jun. 30, 2021 | |
EQUITY INVESTMENTS | |
EQUITY INVESTMENTS | NOTE 3: EQUITY INVESTMENTS The Company’s unconsolidated investments that are considered equity securities as they represent ownership interests, such as common or preferred stock, were as follows for the dates indicated below: June 30, December 31, (Dollars in thousands) 2021 2020 Federal Reserve Bank stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 3,955 5,941 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 3,426 3,299 $ 16,793 $ 18,652 Banks that are members of the Federal Home Loan Bank are required to maintain a stock investment in the Federal Home Loan Bank calculated as a percentage of aggregate outstanding mortgages, outstanding Federal Home Loan Bank advances and other financial instruments. As a member of the Federal Reserve, the Bank is required to annually subscribe to Federal Reserve Bank stock in specific ratios to the Bank’s equity. Although Federal Home Loan Bank and Federal Reserve Bank stock are considered equity securities, they do not have readily determinable fair values because ownership is restricted, and they lack a readily-available market. These investments can be sold back only at their par value of $100 per share and can only be sold to the Federal Home Loan Banks or the Federal Reserve The Company also holds an investment in the stock of The Independent Bankers Financial Corporation, which has limited marketability. As a result, this investment is carried at cost and evaluated for impairment. The Company has investments in investment funds and limited partnerships that are qualified Community Reinvestment Act, or CRA, investments and investments under the Small Business Investment Company program of the Small Business Administration, or SBA. There are limited to no observable price changes in orderly transactions for identical investments or similar investments from the same issuers that are actively traded and, as a result, these investments are stated at cost. At June 30, 2021 and December 31, 2020, the Company had $4.2 million and $4.4 million, respectively, in callable outstanding unfunded commitments to these funds. The Company’s equity investments are evaluated for impairment based on an assessment of qualitative indicators. Impairment indicators to be considered include, but are not limited to: (i) a significant deterioration in the earnings, performance, credit rating, asset quality or business prospects of the investee; (ii) a significant adverse change in the regulatory, economic or technological environment of the investee; (iii) a significant adverse change in the general market conditions of either the geographical area or the industry in which the investee operates; and (iv) a bona fide offer to purchase, an offer by the investee to sell, or completed auction process for the same or similar investment for an amount less than the carrying amount of the investment. There were no such qualitative indicators as of June 30, 2021. |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2021 | |
LOANS | |
LOANS | NOTE 4: LOANS Loans by loan class, or major loan category, as of the dates shown below were as follows: (Dollars in thousands) June 30, 2021 December 31, 2020 Commercial and industrial $ 658,733 24.0% $ 742,957 25.3% Real estate: Commercial real estate 1,060,968 38.7% 1,041,998 35.5% Construction and development 426,007 15.5% 522,705 17.8% 1-4 family residential 211,328 7.7% 239,872 8.2% Multi-family residential 265,252 9.7% 258,346 8.8% Consumer 31,444 1.1% 33,884 1.1% Agriculture 8,283 0.4% 8,670 0.3% Other 78,607 2.9% 88,238 3.0% Total gross loans 2,740,622 100.0% 2,936,670 100.0% Less allowance for credit losses for loans (37,183) (40,637) Less deferred loan fees and unearned discounts (10,318) (9,880) Less loans held for sale (808) (2,673) Loans, net $ 2,692,313 $ 2,883,480 Accrued interest receivable for loans was $10.0 million and $12.1 million at June 30, 2021 and December 31, 2020, respectively, and is included in other assets in the condensed consolidated balance sheets. From time to time, the Company will acquire and dispose of interests in loans under participation agreements with other financial institutions. Loan participations purchased and sold during the six months ending June 30, 2021 and 2020, by loan class, were as follows: Participations Participations (Dollars in thousands) Purchased Sold June 30, 2021 Construction and development $ — $ 22 June 30, 2020 Commercial and industrial — 566 Commercial real estate 2,500 — The Company participates in the SBA loan program. When advantageous, the Company will sell the guaranteed portions of these loans with servicing retained. SBA loans that were sold with servicing retained during the six months ended June 30, 2021 and 2020, totaled $2.0 million and $508,000, respectively. The Company recognized gains on these sales of $223,000 and $41,000 for the six months ended June 30, 2021 and 2020, respectively. |
LOAN PERFORMANCE
LOAN PERFORMANCE | 6 Months Ended |
Jun. 30, 2021 | |
LOAN PERFORMANCE | |
LOAN PERFORMANCE | NOTE 5: LOAN PERFORMANCE The following is an aging analysis of the Company’s past due loans, segregated by loan class, as of the dates shown below: 90 Days or 90 Days 30 to 59 Days 60 to 89 Days Greater Total Total Past Due and (Dollars in thousands) Past Due Past Due Past Due Past Due Current Loans Total Loans Still Accruing June 30, 2021 Commercial and industrial $ — $ — $ — $ — $ 658,733 $ 658,733 $ — Real estate: Commercial real estate — — — — 1,060,968 1,060,968 — Construction and development — — — — 426,007 426,007 — 1-4 family residential 17 — 217 234 211,094 211,328 — Multi-family residential — — — — 265,252 265,252 — Consumer 22 — — 22 31,422 31,444 — Agriculture — — — — 8,283 8,283 — Other — — — — 78,607 78,607 — Total loans $ 39 $ — $ 217 $ 256 $ 2,740,366 $ 2,740,622 $ — December 31, 2020 Commercial and industrial $ 51 $ 2,055 $ 2,269 $ 4,375 $ 738,582 $ 742,957 $ — Real estate: Commercial real estate — — — — 1,041,998 1,041,998 — Construction and development — — — — 522,705 522,705 — 1-4 family residential 1,357 19 106 1,482 238,390 239,872 — Multi-family residential — — — — 258,346 258,346 — Consumer 5 — — 5 33,879 33,884 — Agriculture 50 — — 50 8,620 8,670 — Other — — — — 88,238 88,238 — Total loans $ 1,463 $ 2,074 $ 2,375 $ 5,912 $ 2,930,758 $ 2,936,670 $ — The Company places loans on nonaccrual status because of delinquency or because collection of principal or interest is doubtful. Nonaccrual loans, segregated by loan class, as of the dates shown below were as follows: June 30, December 31, (Dollars in thousands) 2021 2020 Commercial and industrial $ 10,038 $ 12,588 Real estate: Commercial real estate 10,572 10,665 Construction and development — 238 1-4 family residential 363 526 Total nonaccrual loans $ 20,973 $ 24,017 Interest income that would have been earned under the original terms of the nonaccrual loans was $366,000 and $121,000 for the six months ended June 30, 2021 and 2020, respectively. Loans restructured due to the borrower’s financial difficulties, or troubled debt restructurings, during the six months ended June 30, 2021 and 2020, that remained outstanding as of the end of those periods were as follows: Post-modification Recorded Investment Extended Maturity, Pre-modification Extended Restructured Outstanding Maturity and Payments Number Recorded Restructured Extended Restructured and Adjusted (Dollars in thousands) of Loans Investment Payments Maturity Payments Interest Rate June 30, 2021 Commercial and industrial 3 $ 3,256 $ 3,256 $ — $ — $ — Real estate: Commercial real estate 1 1,206 1,206 — — — 1-4 family residential 1 1,548 1,548 — — — Total 5 $ 6,010 $ 6,010 $ — $ — $ — June 30, 2020 Commercial and industrial 17 $ 3,131 $ 2,899 $ — $ — $ 232 Real estate: Commercial real estate 8 9,715 9,715 — — — Construction and development 5 12,564 12,032 — — 532 1-4 family residential 5 1,629 1,651 — — — Total 35 $ 27,039 $ 26,297 $ — $ — $ 764 Loan modifications related to a loan refinancing or restructuring other than a troubled debt restructuring are accounted for as a new loan if the terms provided to the borrower are at least as favorable to the Company as terms for comparable loans to other borrowers with similar collection risks that is not a loan refinancing or restructuring. If the loan refinancing or restructuring does not meet this condition or if only minor modifications are made to the original loan contract, it is not considered a new loan and is considered a renewal or modification of the original contract. Restructured or modified loans are not considered past due if they are performing under the terms of the modified or restructured payment schedule. A troubled debt restructuring is considered in default when a payment in accordance with the terms of the restructuring is more than 30 days past due. All loans restructured in a troubled debt restructuring are individually evaluated based on the underlying collateral for the determination of an ACL. See Note 6: Allowance for Credit Losses for further discussions on specific reserves. Troubled debt restructuring during the twelve months ended indicated below with payment defaults were as follows: June 30, 2021 June 30, 2020 Number Number (Dollars in thousands) of Loans Balance of Loans Balance Commercial and industrial 3 $ 5,892 — $ — Real estate: Commercial real estate 1 4,722 — — Construction and development — — 2 506 Total 4 $ 10,614 2 $ 506 At June 30, 2021 and December 31, 2020, the Company had an outstanding commitment to fund $4.8 million and $593,000, respectively, for loans that were previously restructured. Loans individually evaluated for credit losses were as follows for the dates indicated below: Troubled Debt Restructurings (Dollars in thousands) Accruing Non-Accrual Total Other Non-Accrual Other Accruing Total Loans Individually Evaluated June 30, 2021 Commercial and industrial $ 5,728 $ 7,497 $ 13,225 $ 2,541 $ 746 $ 16,512 Real estate: Commercial real estate 7,192 10,512 17,704 60 — 17,764 Construction and development 12,323 — 12,323 — — 12,323 1-4 family residential 3,142 187 3,329 176 — 3,505 Consumer — — — — 90 90 Other 3,404 — 3,404 — — 3,404 Total $ 31,789 $ 18,196 $ 49,985 $ 2,777 $ 836 $ 53,598 December 31, 2020 Commercial and industrial $ 2,594 $ 8,228 $ 10,822 $ 4,360 $ 746 $ 15,928 Real estate: Commercial real estate 8,103 10,601 18,704 64 — 18,768 Construction and development 12,648 238 12,886 — — 12,886 1-4 family residential 1,684 106 1,790 420 — 2,210 Other 7,851 — 7,851 — — 7,851 Total $ 32,880 $ 19,173 $ 52,053 $ 4,844 $ 746 $ 57,643 |
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES | 6 Months Ended |
Jun. 30, 2021 | |
ALLOWANCE FOR CREDIT LOSSES | |
ALLOWANCE FOR CREDIT LOSSES | NOTE 6: ALLOWANCE FOR CREDIT LOSSES The Company primarily manages credit quality and credit risk associated with its loan portfolio based on the risk grading assigned to each individual loan within the loan class. Each loan class is a grouping of loan receivables within the portfolio based on risk characteristics and the method for monitoring and assessing the associated credit risks. The Company’s ACL for the loan portfolio has two main components: (i) a reserve based on expected losses on collectively evaluated loans with similar risk characteristics, or general reserve, utilizing an age-based vintage model; and (ii) an ACL for individually evaluated loans that do not share similar risk characteristics with other loans, or specific reserve. To determine the specific ACL, the Company utilizes various methods including discounted cash flow analysis and appraisal valuation on collateral to determine any expected credit losses requiring an ACL. The Company excludes accrued interest and deferred fees and costs in the determination of an ACL and reverses previously accrued interest when it has been deemed uncollectible. Loans held for sale are excluded from the computation of expected credit losses as they are carried at the lower of cost or market value. At June 30, 2021 and December 31, 2020, the ratio of the ACL for loans to loans excluding loans held for sale was 1.36% and 1.39%, respectively. The decrease in the ACL from December 31, 2020 to June 30, 2021 The review of the appropriateness of the ACL, which includes evaluation of historical loss trends, qualitative adjustments and forecasted economic conditions applied to general reserves, is performed by executive management and presented to the Board of Directors for its review on a quarterly basis. The ACL at June 30, 2021, reflects the Company’s assessment based on the information available at that time. Loans by risk grades, loan class and vintage, at June 30, 2021 were as follows: (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Pass $ 201,597 $ 108,681 $ 71,587 $ 30,328 $ 10,764 $ 8,500 $ 199,757 $ 5,806 $ 637,020 Special mention — — — 24 — — 3,256 — 3,280 Substandard — 1,000 2,102 7,310 5 426 1,531 6,059 18,433 Total commercial and industrial 201,597 109,681 73,689 37,662 10,769 8,926 204,544 11,865 658,733 Commercial real estate: Pass 81,102 234,312 246,001 193,682 102,879 113,556 34,626 4,504 1,010,662 Special mention — 1,844 879 — — 1,915 4,834 — 9,472 Substandard — 1,317 11,349 14,751 359 2,208 10,850 — 40,834 Total commercial real estate 81,102 237,473 258,229 208,433 103,238 117,679 50,310 4,504 1,060,968 Construction and development: Pass 67,028 124,652 89,754 38,963 18,892 3,313 70,596 486 413,684 Substandard — — — 1,500 10,207 616 — — 12,323 Total construction and development 67,028 124,652 89,754 40,463 29,099 3,929 70,596 486 426,007 1-4 family residential: Pass 14,385 22,825 29,942 38,592 25,978 66,800 5,024 973 204,519 Special mention — — — — — 1,524 — — 1,524 Substandard — 1,547 525 912 165 630 — 1,506 5,285 Total 1-4 family residential 14,385 24,372 30,467 39,504 26,143 68,954 5,024 2,479 211,328 Multi-family residential: Pass 10,280 20,490 2,370 51,712 10,236 168,587 1,577 — 265,252 Total multi-family residential 10,280 20,490 2,370 51,712 10,236 168,587 1,577 — 265,252 Consumer: Pass 4,915 5,441 2,045 1,325 1,532 68 15,444 484 31,254 Substandard — — — — — — 190 — 190 Total consumer 4,915 5,441 2,045 1,325 1,532 68 15,634 484 31,444 Agriculture: Pass 2,979 1,063 54 111 72 12 3,736 191 8,218 Substandard — — — — — 21 44 — 65 Total agriculture 2,979 1,063 54 111 72 33 3,780 191 8,283 Other: Pass 10,798 7,439 1,393 1,850 16 1,243 52,463 — 75,202 Substandard — 977 — — — 1,214 1,214 — 3,405 Total other 10,798 8,416 1,393 1,850 16 2,457 53,677 — 78,607 Total Pass 393,084 524,903 443,146 356,563 170,369 362,079 383,223 12,444 2,645,811 Special mention — 1,844 879 24 — 3,439 8,090 — 14,276 Substandard — 4,841 13,976 24,473 10,736 5,115 13,829 7,565 80,535 Total $ 393,084 $ 531,588 $ 458,001 $ 381,060 $ 181,105 $ 370,633 $ 405,142 $ 20,009 $ 2,740,622 Loans by risk grades, loan class and vintage, at December 31, 2020 were as follows: (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Pass $ 349,697 $ 81,131 $ 46,973 $ 13,161 $ 8,349 $ 3,432 $ 214,160 $ 3,562 $ 720,465 Special mention — — 33 — — — 3,371 — 3,404 Substandard 1,001 2,633 6,177 15 20 2,021 779 6,442 19,088 Total commercial and industrial 350,698 83,764 53,183 13,176 8,369 5,453 218,310 10,004 742,957 Commercial real estate: Pass 262,072 210,954 196,630 138,424 68,468 84,453 30,020 9,482 1,000,503 Special mention — 1,224 — — — 1,390 — 4,905 7,519 Substandard — 11,532 9,599 476 1,059 1,985 9,325 — 33,976 Total commercial real estate 262,072 223,710 206,229 138,900 69,527 87,828 39,345 14,387 1,041,998 Construction and development: Pass 165,894 163,658 92,455 20,146 6,707 273 53,800 — 502,933 Substandard — 238 8,386 10,532 — 616 — — 19,772 Total construction and development 165,894 163,896 100,841 30,678 6,707 889 53,800 — 522,705 1-4 family residential: Pass 27,002 30,978 48,561 34,970 24,386 57,122 7,004 631 230,654 Special mention 1,548 — — — 1,617 — — — 3,165 Substandard — 534 1,211 1,571 15 1,215 — 1,507 6,053 Total 1-4 family residential 28,550 31,512 49,772 36,541 26,018 58,337 7,004 2,138 239,872 Multi-family residential: Pass 20,823 3,119 36,971 10,655 2,153 184,539 86 — 258,346 Total multi-family residential 20,823 3,119 36,971 10,655 2,153 184,539 86 — 258,346 Consumer: Pass 8,937 3,073 1,855 1,875 146 23 17,573 402 33,884 Total consumer 8,937 3,073 1,855 1,875 146 23 17,573 402 33,884 Agriculture: Pass 3,937 105 338 86 16 — 4,108 7 8,597 Substandard — — — — — 23 50 — 73 Total agriculture 3,937 105 338 86 16 23 4,158 7 8,670 Other: Pass 14,624 3,239 3,562 24 84 1,250 57,603 — 80,386 Substandard 1,211 — — — 1,232 — 5,409 — 7,852 Total other 15,835 3,239 3,562 24 1,316 1,250 63,012 — 88,238 Total Pass 852,986 496,257 427,345 219,341 110,309 331,092 384,354 14,084 2,835,768 Special mention 1,548 1,224 33 — 1,617 1,390 3,371 4,905 14,088 Substandard 2,212 14,937 25,373 12,594 2,326 5,860 15,563 7,949 86,814 Total $ 856,746 $ 512,418 $ 452,751 $ 231,935 $ 114,252 $ 338,342 $ 403,288 $ 26,938 $ 2,936,670 Loans by risk grades and loan class as of the dates shown below were as follows: (Dollars in thousands) Pass Special Mention Substandard Total Loans June 30, 2021 Commercial and industrial $ 637,020 $ 3,280 $ 18,433 $ 658,733 Real estate: Commercial real estate 1,010,662 9,472 40,834 1,060,968 Construction and development 413,684 — 12,323 426,007 1-4 family residential 204,519 1,524 5,285 211,328 Multi-family residential 265,252 — — 265,252 Consumer 31,254 — 190 31,444 Agriculture 8,218 — 65 8,283 Other 75,202 — 3,405 78,607 Total loans $ 2,645,811 $ 14,276 $ 80,535 $ 2,740,622 December 31, 2020 Commercial and industrial $ 720,465 $ 3,404 $ 19,088 $ 742,957 Real estate: Commercial real estate 1,000,503 7,519 33,976 1,041,998 Construction and development 502,933 — 19,772 522,705 1-4 family residential 230,654 3,165 6,053 239,872 Multi-family residential 258,346 — — 258,346 Consumer 33,884 — — 33,884 Agriculture 8,597 — 73 8,670 Other 80,386 — 7,852 88,238 Total loans $ 2,835,768 $ 14,088 $ 86,814 $ 2,936,670 Loans individually evaluated and collectively evaluated as of the dates shown below were as follows: June 30, 2021 December 31, 2020 Individually Collectively Individually Collectively Evaluated Evaluated Total Evaluated Evaluated Total (Dollars in thousands) Loans Loans Loans Loans Loans Loans Commercial and industrial $ 16,512 $ 642,221 $ 658,733 $ 15,928 $ 727,029 $ 742,957 Real estate: Commercial real estate 17,764 1,043,204 1,060,968 18,768 1,023,230 1,041,998 Construction and development 12,323 413,684 426,007 12,886 509,819 522,705 1-4 family residential 3,505 207,823 211,328 2,210 237,662 239,872 Multi-family residential — 265,252 265,252 — 258,346 258,346 Consumer 90 31,354 31,444 — 33,884 33,884 Agriculture — 8,283 8,283 — 8,670 8,670 Other 3,404 75,203 78,607 7,851 80,387 88,238 Total $ 53,598 $ 2,687,024 $ 2,740,622 $ 57,643 $ 2,879,027 $ 2,936,670 Nonaccrual loans are included in individually evaluated loans and $8.8 million and $11.2 million of nonaccrual loans had no related ACL at June 30, 2021 and December 31, 2020, respectively. The Company had collateral dependent loans totaling $105,000 pending foreclosure at June 30, 2021. Activity in the ACL for loans, segregated by loan class for the six months ended June 30, 2021 and 2020, was as follows: Real Estate Commercial Construction and Commercial and 1-4 Family Multi-family (Dollars in thousands) Industrial Real Estate Development Residential Residential Consumer Agriculture Other Total June 30, 2021 Beginning balance $ 13,035 $ 13,798 $ 6,089 $ 2,578 $ 2,513 $ 440 $ 137 $ 2,047 $ 40,637 Provision (recapture) (1,083) (538) (1,636) (406) (131) (46) (64) — (3,904) Charge-offs (495) — — — — (3) — — (498) Recoveries 803 — — — — 103 42 — 948 Net recoveries 308 — — — — 100 42 — 450 Ending balance $ 12,260 $ 13,260 $ 4,453 $ 2,172 $ 2,382 $ 494 $ 115 $ 2,047 $ 37,183 Period-end amount allocated to: Specific reserve $ 4,803 $ 252 $ — $ — $ — $ 90 $ — $ 536 $ 5,681 General reserve 7,457 13,008 4,453 2,172 2,382 404 115 1,511 31,502 Total $ 12,260 $ 13,260 $ 4,453 $ 2,172 $ 2,382 $ 494 $ 115 $ 2,047 $ 37,183 June 30, 2020 Beginning balance $ 7,671 $ 7,975 $ 4,446 $ 2,257 $ 1,699 $ 388 $ 74 $ 770 $ 25,280 Impact of CECL adoption 852 (140) 100 (275) 294 (25) 64 4 874 Provision (recapture) 3,169 4,613 2,504 1,256 887 258 (16) 605 13,276 Charge-offs (79) (24) — (66) — (103) — — (272) Recoveries 495 — — 1 — 11 12 1 520 Net (charge-offs) recoveries 416 (24) — (65) — (92) 12 1 248 Ending balance $ 12,108 $ 12,424 $ 7,050 $ 3,173 $ 2,880 $ 529 $ 134 $ 1,380 $ 39,678 Period-end amount allocated to: Specific reserve $ 2,403 $ — $ — $ — $ — $ — $ — $ 468 $ 2,871 General reserve 9,705 12,424 7,050 3,173 2,880 529 134 912 36,807 Total $ 12,108 $ 12,424 $ 7,050 $ 3,173 $ 2,880 $ 529 $ 134 $ 1,380 $ 39,678 The ACL for loans by loan class as of the periods indicated was as follows: June 30, 2021 December 31, 2020 (Dollars in thousands) Amount Percent Amount Percent Commercial and industrial $ 12,260 33.0 % $ 13,035 32.1 % Real estate: Commercial real estate 13,260 35.7 % 13,798 34.0 % Construction and development 4,453 12.0 % 6,089 15.0 % 1-4 family residential 2,172 5.8 % 2,578 6.3 % Multi-family residential 2,382 6.4 % 2,513 6.2 % Consumer 494 1.3 % 440 1.1 % Agriculture 115 0.3 % 137 0.3 % Other 2,047 5.5 % 2,047 5.0 % Total allowance for credit losses for loans $ 37,183 100.0 % $ 40,637 100.0 % Loans excluding loans held for sale 2,729,496 2,924,117 ACL for loans to loans excluding loans held for sale 1.36% 1.39% Allocation of a portion of the ACL to one class of loans above does not preclude its availability to absorb losses in other classes. Charge-offs and recoveries by loan class and vintage for the six months ended June 30, 2021 were as follows: (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Charge-off $ — $ — $ (191) $ (260) $ — $ — $ — $ (44) $ (495) Recovery — — 3 29 40 703 — 28 803 Total commercial and industrial — — (188) (231) 40 703 — (16) 308 Consumer: Charge-off — — (3) — — — — — (3) Recovery 2 — — 2 — 99 — — 103 Total consumer 2 — (3) 2 — 99 — — 100 Agriculture: Recovery — — — — — 42 — — 42 Total agriculture — — — — — 42 — — 42 Total: Charge-off — — (194) (260) — — — (44) (498) Recovery 2 — 3 31 40 844 — 28 948 Total $ 2 $ — $ (191) $ (229) $ 40 $ 844 $ — $ (16) $ 450 Charge-offs and recoveries by loan class and vintage for the six months ended June 30, 2020 were as follows: (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Total Commercial and industrial: Charge-off $ — $ — $ — $ (36) $ (42) $ — $ (1) $ (79) Recovery — 2 92 33 19 155 194 495 Total commercial and industrial — 2 92 (3) (23) 155 193 416 Commercial real estate: Charge-off — — — — — (24) — (24) Total commercial real estate — — — — — (24) — (24) 1-4 family residential: Charge-off — (65) — — — (1) — (66) Recovery — — — — — 1 — 1 Total 1-4 family residential — (65) — — — — — (65) Consumer: Charge-off — — (8) (95) — — — (103) Recovery 10 — — — — 1 — 11 Total consumer 10 — (8) (95) — 1 — (92) Agriculture: Recovery — — — — 12 — — 12 Total agriculture — — — — 12 — — 12 Other: Recovery — — — 1 — — — 1 Total other — — — 1 — — — 1 Total: Charge-off — (65) (8) (131) (42) (25) (1) (272) Recovery 10 2 92 34 31 157 194 520 Total $ 10 $ (63) $ 84 $ (97) $ (11) $ 132 $ 193 $ 248 The Company has unfunded commitments, comprised of letters of credit and commitments to extend credit that are not unconditionally cancellable by the Company. See Note 16: Commitments and Contingencies and Financial Instruments with Off-Balance-Sheet Risk. Unfunded commitments have similar characteristics as loans and their ACL was determined using the model and methodology for loans noted above as well as historical and expected utilization levels. Activity in the ACL for unfunded commitments for the six months ended June 30, 2021 and 2020, was as follows: June 30, (Dollars in thousands) 2021 2020 Beginning balance $ 4,177 $ 378 Impact of CECL adoption — 2,981 Provision (recapture) (767) 1,643 Ending balance $ 3,410 $ 5,002 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2021 | |
PREMISES AND EQUIPMENT | |
PREMISES AND EQUIPMENT | NOTE 7: PREMISES AND EQUIPMENT The components of premises and equipment as of the dates shown below were as follows: June 30, December 31, (Dollars in thousands) 2021 2020 Land $ 15,484 $ 15,484 Buildings and leasehold improvements 64,120 64,113 Furniture and equipment 17,014 16,777 Vehicles 248 216 Construction in progress 581 388 97,447 96,978 Less accumulated depreciation (37,460) (35,826) Premises and equipment, net $ 59,987 $ 61,152 Depreciation expense was $1.7 million and $1.5 million for the six months ended June 30, 2021 and 2020, respectively, and $868,000 and $745,000 for the three months ended June 30, 2021 and 2020, respectively. Depreciation expense is included in net occupancy expense in the Company’s condensed consolidated statements of income. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2021 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 8: GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill was $81.0 million at June 30, 2021 and December 31, 2020 and there were no changes in goodwill during the six months ended June 30, 2021 or the year ended December 31, 2020. During the six months ended June 30, 2021, the Company continued to evaluate potential triggering events, including the economic disruption and uncertainties related to the COVID-19 pandemic and the sustained instability in the oil and gas industry, that could be indicators of impairment. Based on the results of the Company’s evaluation, management does not believe any triggering events occurred that would indicate there was a potential impairment of goodwill intangible Other intangibles were as follows as of the dates shown below: Weighted- Average Remaining Gross Net Amortization Intangible Accumulated Intangible (Dollars in thousands) Period Assets Amortization Assets June 30, 2021 Core deposits 2.8 years $ 13,750 $ (13,433) $ 317 Customer relationships 7.5 years 6,629 (3,314) 3,315 Servicing assets 11.4 years 451 (237) 214 Total other intangible assets, net $ 20,830 $ (16,984) $ 3,846 December 31, 2020 Core deposits 3.2 years $ 13,750 $ (13,305) $ 445 Customer relationships 8.0 years 6,629 (3,093) 3,536 Servicing assets 10.4 years 399 (209) 190 Total other intangible assets, net $ 20,778 $ (16,607) $ 4,171 Servicing Assets Changes in servicing assets as of the dates indicated below were as follows: June 30, (Dollars in thousands) 2021 2020 Balance at beginning of year $ 190 $ 189 Increase from loan sales 53 9 Decrease from serviced loans paid off or foreclosed (1) — Amortization (28) (55) Balance at end of period $ 214 $ 143 |
BANK OWNED LIFE INSURANCE
BANK OWNED LIFE INSURANCE | 6 Months Ended |
Jun. 30, 2021 | |
BANK OWNED LIFE INSURANCE. | |
BANK OWNED LIFE INSURANCE | NOTE 9: BANK-OWNED LIFE INSURANCE Bank-owned life insurance policies and the net change in cash surrender value during the periods shown below were as follows: June 30, (Dollars in thousands) 2021 2020 Balance at beginning of period $ 72,338 $ 71,881 Net change in cash surrender value 780 828 Balance at end of period $ 73,118 $ 72,709 |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2021 | |
DEPOSITS | |
DEPOSITS | NOTE 10: DEPOSITS Deposits as of the dates shown below were as follows: June 30, December 31, (Dollars in thousands) 2021 2020 Interest-bearing demand accounts $ 375,543 $ 380,175 Money market accounts 1,101,091 1,039,617 Savings accounts 115,823 108,167 Certificates and other time deposits, $100,000 or greater 142,343 152,592 Certificates and other time deposits, less than $100,000 125,202 144,818 Total interest-bearing deposits 1,860,002 1,825,369 Noninterest-bearing deposits 1,556,784 1,476,425 Total deposits $ 3,416,786 $ 3,301,794 At June 30, 2021 and December 31, 2020, the Company had $34.5 million and $29.3 million in deposits from public entities and brokered deposits of $69.9 million and $88.0 million, respectively. At June 30, 2021 and December 31, 2020, overdrafts of $293,000 and $336,000, respectively, were reclassified to loans. Accrued interest payable for deposits was $186,000 and $324,000 at June 30, 2021 and December 31, 2020, respectively, and is included in other liabilities in the condensed consolidated balance sheets. The Company had no major concentrations of deposits at June 30, 2021 or December 31, 2020 from any single or related groups of depositors. At June 30, 2021, $72.1 million of certificates of deposits or other time deposits were uninsured. Securities pledged and the letter of credit issued under the Company’s Federal Home Loan blanket lien arrangement which secure public deposits were not considered in determining the amount of uninsured time deposits. |
LINES OF CREDIT
LINES OF CREDIT | 6 Months Ended |
Jun. 30, 2021 | |
LINES OF CREDIT | |
LINES OF CREDIT | NOTE 11: LINES OF CREDIT Frost Line of Credit The Company has entered into a loan agreement with another financial institution, or Loan Agreement, which has been periodically amended and provides for a $30.0 million revolving line of credit. At June 30, 2021, there were no outstanding borrowings on this line of credit and the Company did not draw on this line of credit during 2021 or 2020. The Company can make draws on the line of credit for a period of 24 months, which began on December 13, 2019, after which the Company will not be permitted to make further draws and the outstanding balance will amortize over a period of 60 months. Interest accrues on outstanding borrowings at a rate equal to the maximum “Latest” U.S. prime rate of interest per annum and payable quarterly over 24 months beginning December 13, 2019, and thereafter, quarterly principal and interest payments are required over a term of 60 months. The entire outstanding balance and unpaid interest is payable in full on December 13, 2026. The Company may prepay the principal amount of the line of credit without premium or penalty. The obligations of the Company under the Loan Agreement are secured by a valid and perfected first priority lien on all of the issued and outstanding shares of capital stock of the Bank. Covenants made under the Loan Agreement include, among other things, the Company maintaining tangible net worth of not less than $300.0 million, the Company maintaining a free cash flow coverage ratio of not less than 1.25 to 1.00, the Bank’s Texas Ratio (as defined in the Loan Agreement) not to exceed 15%, the Bank’s Total Capital Ratio (as defined under the Loan Agreement) of not less than 12% and restrictions on the ability of the Company and its subsidiaries to incur certain additional debt. The Company was in compliance with these covenants at June 30, 2021. Additional Lines of Credit The Federal Home Loan Bank allows the Company to borrow on a blanket floating lien status collateralized by certain loans and the blanket lien amount was $1.1 billion at both June 30, 2021 and December 31, 2020. Federal Home Loan Bank advances outstanding totaled $50.0 million at both June 30, 2021 and December 31, 2020, and these borrowings were on a long-term basis. See maturity information below. At December 31, 2020, there was a $10.8 million letter of credit outstanding that was issued under this agreement and used as collateral to secure certain public deposits. After considering the outstanding advances and letter of credit, the net capacity available under the Federal Home Loan Bank facility was $1.1 billion at June 30, 2021 and $1.0 billion at December 31, 2020. During the six months ended June 30, 2020, the Company also borrowed under this agreement on a short-term basis but did not during the six months ended June 30, 2021. The average outstanding balance for Federal Home Loan Bank advances for the six months ended June 30, 2021 and 2020 was $50.0 million and $60.4 million, respectively, and the weighted-average interest rate for the same periods was 1.78% and 1.54%, respectively. The scheduled maturities of Federal Home Loan Bank advances as of the date shown below were as follows: (Dollars in thousands) June 30, 2021 2021 $ — 2022 10,000 2023 20,000 2024 20,000 2025 — Thereafter — Total $ 50,000 At June 30, 2021 and December 31, 2020, the Company maintained federal funds lines of credit with commercial banks that provided for the availability to borrow up to an aggregate of $65.0 million. There were no funds under these lines of credit outstanding at June 30, 2021 or December 31, 2020. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 12: RELATED PARTY TRANSACTIONS In the ordinary course of business, the Company, through the Bank, has and expects to continue to conduct routine banking business with related parties, including its executive officers and directors. Related parties also include shareholders and their affiliates who directly or indirectly have 5% or more beneficial ownership in the Company. Loans Unfunded Commitments Deposits |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 6 Months Ended |
Jun. 30, 2021 | |
FAIR VALUE DISCLOSURES | |
FAIR VALUE DISCLOSURES | NOTE 13: FAIR VALUE DISCLOSURES The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction occurring in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. In estimating fair value, the Company uses valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques refer to the assumptions used in pricing the asset or liability. Valuation inputs are categorized in a three-level hierarchy, that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs Level 2 Inputs Level 3 Inputs During the six months ended June 30, 2021 and the year ended December 31, 2020, there were no transfers of assets or liabilities within the levels of the fair value hierarchy. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon models that primarily use observable market-based parameters as inputs. Valuation adjustments may be made to ensure that assets and liabilities are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value could result in different estimates of fair value. Fair value estimates are based on judgments regarding current economic conditions, risk characteristics of the various 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. Financial Instruments Measured at Fair Value on a Recurring Basis The Company’s assets and liabilities measured at fair value on a recurring basis include the following: Debt Securities Available for Sale Equity Securities Available for Sale Interest Rate Swaps Financial assets and financial liabilities measured at fair value on a recurring basis as of the dates shown below were as follows: June 30, December 31, (Dollars in thousands) 2021 2020 Fair value of financial assets: Level 1 inputs: Equity securities $ 1,182 $ 1,193 Debt securities available for sale - U.S. Treasury securities 11,961 — Level 2 inputs: Debt securities available for sale: State and municipal securities 127,107 93,037 U.S. agency securities: Callable debentures 3,002 — Collateralized mortgage obligations 34,589 35,402 Mortgage-backed securities 131,392 107,649 Interest rate swaps 5,064 8,618 Level 3 inputs: Credit risk participation agreement 17 40 Total fair value of financial assets $ 314,314 $ 245,939 Fair value of financial liabilities: Level 2 inputs: Interest rate swaps $ 5,064 $ 8,618 Total fair value of financial liabilities $ 5,064 $ 8,618 Financial Instruments Measured at Fair Value on a Non-recurring Basis A portion of financial instruments are measured at fair value on a non-recurring basis and are subject to fair value adjustments in certain circumstances. Financial assets measured at fair value on a non-recurring basis during the dates shown below include certain loans reported at the fair value of the underlying collateral if repayment is expected solely from the collateral or a discounted cash flow method if not. Prior to foreclosure, estimated fair values for collateral is estimated based on Level 3 inputs based on customized discounting criteria. The Company’s financial assets measured at fair value on a non-recurring basis are certain individually evaluated loans and as of the dates shown below were as follows: June 30, 2021 December 31, 2020 (Dollars in thousands) Recorded Investment Specific ACL Net Recorded Investment Specific ACL Net Level 3 inputs: Loans evaluated individually Commercial and industrial $ 9,860 $ 4,803 $ 5,057 $ 10,509 $ 5,004 $ 5,505 Commercial real estate 5,705 252 5,453 5,727 323 5,404 Consumer 90 90 — — — — Other 2,190 536 1,654 1,232 205 1,027 Total $ 17,845 $ 5,681 $ 12,164 $ 17,468 $ 5,532 $ 11,936 Non-Financial Assets and Non-Financial Liabilities Measured at Fair Value on a Non-recurring Basis The Company’s non-financial assets measured at fair value on a non-recurring basis for the periods reported are foreclosed assets (upon initial recognition or subsequent impairment). The Company’s other non-financial assets whose fair value may be measured on a non-recurring basis when there is evidence of impairment and may be subject to impairment adjustments include goodwill and intangible assets, among other assets. The fair value of foreclosed assets may be estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria less estimated selling costs. There were no write-downs of foreclosed assets for fair value remeasurement subsequent to initial foreclosure during the six months ended June 30, 2021 or during 2020. There were no outstanding foreclosed assets at June 30, 2021 or December 31, 2020. Financial Instruments Reported at Amortized Cost Fair market values and carrying amounts of financial instruments that are reported at cost as of the dates shown below were as follows: June 30, 2021 December 31, 2020 Carrying Carrying (Dollars in thousands) Fair Value Amount Fair Value Amount Financial assets: Level 1 inputs: Cash and due from banks $ 788,409 $ 788,409 $ 538,007 $ 538,007 Level 2 inputs: Bank-owned life insurance 73,118 73,118 72,338 72,338 Accrued interest receivable 11,509 11,509 13,350 13,350 Servicing asset 214 214 190 190 Level 3 inputs: Loans, including held for sale, net 2,723,450 2,693,121 2,919,854 2,886,153 Other investments 16,793 16,793 18,652 18,652 Total financial assets $ 3,613,493 $ 3,583,164 $ 3,562,391 $ 3,528,690 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,556,784 $ 1,556,784 $ 1,476,425 $ 1,476,425 Level 2 inputs: Interest-bearing deposits 1,896,430 1,860,002 1,894,558 1,825,369 Federal Home Loan Bank advances 51,222 50,000 51,726 50,000 Accrued interest payable 260 260 398 398 Total financial liabilities $ 3,504,696 $ 3,467,046 $ 3,423,107 $ 3,352,192 The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value and as such the fair values shown above are not necessarily indicative of the amounts the Company will realize. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2021 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 14: DERIVATIVE FINANCIAL INSTRUMENTS The Company has outstanding interest rate swap contracts with certain customers and equal and offsetting interest rate swaps with other financial institutions entered into at the same time. These interest rate swap contracts are not designated as hedging instruments for mitigating interest rate risk. The objective of the transactions is to allow customers to effectively convert a variable rate loan to a fixed rate. In connection with each swap transaction, the Company agreed to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, the Company agreed to pay a third-party financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. Because the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts are designed to offset each other and do not significantly impact the Company’s operating results except in certain situations where there is a significant deterioration in the customer’s credit worthiness or that of the counterparties. At June 30, 2021 and December 31, 2020, management determined there was no such deterioration. At June 30, 2021 and December 31, 2020, the Company had 22 and 23 interest rate swap agreements outstanding with borrowers and financial institutions, respectively. These derivative instruments are not designated as accounting hedges and changes in the net fair value are recognized in other noninterest income. Fair value amounts are included in other assets and other liabilities. The Company has a credit risk participation agreement with another financial institution that is associated with an interest rate swap related to a loan for which the Company is the lead agent bank and the other financial institution provides credit protection to the Company should the borrower fail to perform under the terms of the interest rate swap agreement. The fair value of the agreement is determined based on the market value of the underlying interest rate swap adjusted for credit spreads and recovery rates. Derivative instruments outstanding as of the dates shown below were as follows: Weighted Average Notional Fair Maturity (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate (Years) June 30, 2021 Interest rate swaps with customers Other assets $ 99,006 $ 4,453 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 4.42 Interest rate swaps with financial institutions Other assets 36,862 321 3.50% LIBOR 1M + 2.50% 8.75 Interest rate swaps with customers Other assets 5,196 290 4.99% U.S. Prime 6.46 Interest rate swaps with financial institutions Other liabilities 5,196 (290) 4.99% U.S. Prime 6.46 Interest rate swaps with financial institutions Other liabilities 99,006 (4,453) 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 4.42 Interest rate swaps with customers Other liabilities 36,862 (321) 3.50% LIBOR 1M + 2.50% 8.75 Credit risk participation agreement with financial institution Other assets 13,823 17 3.50% LIBOR 1M + 2.50% 8.75 Total derivatives $ 295,951 $ 17 December 31, 2020 Interest rate swaps with customers Other assets $ 141,241 $ 8,146 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.14 Interest rate swaps with customers Other assets 5,250 472 4.99% U.S. Prime 6.96 Interest rate swaps with financial institutions Other liabilities 5,250 (472) 4.99% U.S. Prime 6.96 Interest rate swaps with financial institutions Other liabilities 141,241 (8,146) 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.14 Credit risk participation agreement with financial institution Other assets 14,084 40 3.50% LIBOR 1M + 2.50% 9.24 Total derivatives $ 307,066 $ 40 |
OPERATING LEASES
OPERATING LEASES | 6 Months Ended |
Jun. 30, 2021 | |
OPERATING LEASES | |
OPERATING LEASES | NOTE 15: OPERATING LEASES The Company leases certain office space, stand-alone buildings and land, which are recognized as operating lease right-of-use assets in the consolidated balance sheets and operating lease liabilities in the consolidated balance sheets represent the Company’s liability to make lease payments under these operating leases, on a discounted basis. The Company excludes short-term leases, defined as lease terms of 12 months or less from its operating lease right-of-use assets and operating lease liabilities. Lease costs for the period shown below were as follows: Six Months Ended June 30, (Dollars in thousands) 2021 2020 Operating lease cost $ 970 $ 993 Short-term lease cost 9 28 Sublease income (314) (63) Total lease cost $ 665 $ 958 Other information related to operating leases for the periods shown below was as follows: Six Months Ended June 30, (Dollars in thousands) 2021 2020 Amortization of lease right-to-use asset $ 771 $ 743 Accretion of lease liabilities 199 249 Cash paid for amounts included in the measurement of lease liabilities 1,055 1,143 Weighted-average discount rate 2.64% 2.70% Weighted-average remaining lease term in years 10.7 11.3 A maturity analysis of operating lease liabilities as of the date shown below was as follows: (Dollars in thousands) June 30, 2021 2021 $ 2,021 2022 2,241 2023 2,138 2024 1,798 2025 1,786 Thereafter 8,476 Total undiscounted lease liability 18,460 Less: Discount on cash flows (2,870) Total operating lease liability $ 15,590 |
COMMITMENTS AND CONTINGENCIES A
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | 6 Months Ended |
Jun. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | |
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | NOTE 16: COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF - - Financial Instruments with Off-Balance-Sheet Risk The Company enters into commitments to extend credit and standby letters of credit to meet customer financing needs and, in accordance with GAAP, these commitments are not reflected as liabilities in the consolidated balance sheets. Due to the nature of these commitments, the amounts disclosed in the tables below do not necessarily represent future cash requirements. Commitments to extend credit and standby letters of credit as of the dates shown below were as follows: June 30, December 31, (Dollars in thousands) 2021 2020 Commitments to extend credit, variable interest rate $ 625,824 $ 659,385 Commitments to extend credit, fixed interest rate 66,757 80,346 Total commitments $ 692,581 $ 739,731 Standby letters of credit $ 23,022 $ 26,078 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, generally have fixed expiration dates or other termination clauses and may expire without being fully drawn upon. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third-party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to the Company’s customers. Litigation The Company is subject to claims and lawsuits which arise primarily in the ordinary course of business. Based on information presently available and advice received from legal counsel representing the Company, it is the opinion of management that the disposition or ultimate determination of such claims and lawsuits will not have a material adverse effect on the financial position or results of operations of the Company. |
EMPLOYEE BENEFIT PLANS AND DEFE
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS | 6 Months Ended |
Jun. 30, 2021 | |
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS | |
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS | NOTE 17: EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS Employee Benefit Plans The Company maintains a 401(k) employee benefit plan and substantially all employees that complete three months of service may participate. The Company matches a portion of each employee’s contribution and may, at its discretion, make additional contributions. During the six months ended June 30, 2021 and 2020, the Company contributed $1.2 million and $1.2 million to the plan, respectively. Executive Deferred Compensation Arrangements The Company established an executive incentive compensation arrangement with several officers of the Bank, in which these officers are eligible for performance-based incentive bonus compensation. As part of this compensation arrangement, the Company contributes one-fourth Salary Continuation Agreements The Company entered into a salary continuation arrangement in 2008 with the Company’s then President and Chief Executive Officer, or CEO, that calls for payments of $100,000 per year for a period of 10 years commencing at age 65. Payments under the plan began during 2014. The Company’s liability was $200,000 and $246,000 at June 30, 2021 and December 31, 2020, respectively, which is included in other liabilities in the condensed consolidated balance sheets and equals the present value of the benefits expected to be provided. In October 2017, the Company entered into a salary continuation arrangement with the Company’s President and CEO that calls for payments of $200,000 per year payable for a period of 10 years commencing at age 70. Payments under the plan will begin in 2024. The Company’s liability was $778,000 and $640,000 at June 30, 2021 and December 31, 2020, respectively, which is included in other liabilities in the condensed consolidated balance sheets. The liability will continue to accrue over the remaining period until payments commence such that the accrued amount at the eligibility date will equal the present value of all the future benefits expected to be paid. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2021 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | NOTE 18: STOCK-BASED COMPENSATION The Company acquired a stock option plan which originated under VB Texas, Inc. as a part of a merger of the two companies, or the 2006 Plan. At the merger date, all outstanding options under this plan became fully vested and exercisable. The plan expired in 2016 and no additional options may be granted under its terms. As of June 30, 2021, there were options outstanding to acquire 45,720 shares of the Company’s common stock under the 2006 Plan, all of which will expire in 2022 if not exercised. In 2014, the Company adopted the 2014 Stock Option Plan, or the 2014 Plan, which was approved by the Company’s shareholders and limits the number of shares that may be optioned to 1,127,200. The 2014 Plan provides that no options may be granted after May 20, 2024. Options granted under the 2014 Plan expire 10 years from the date of grant and become exercisable in installments over a period of one In 2017, the Company adopted the 2017 Omnibus Incentive Plan, or the 2017 Plan. The 2017 Plan authorizes the Company to grant options, performance-based and non-performance based restricted stock awards as well as various other types of stock-based awards and other awards that are not stock-based to eligible employees, consultants and non-employee directors up to an aggregate of 600,000 shares of common stock. As of June 30, 2021, 279,156 shares were available for future grant under the 2017 Plan. Stock option activity for the periods shown below was as follows: Six Months Ended June 30, 2021 2020 Number of Weighted Number of Weighted Shares Average Shares Average Underlying Exercise Underlying Exercise Options Price Options Price Outstanding at beginning of period 201,720 $ 17.22 213,078 $ 16.92 Granted — — — — Exercised — — (2,524) 12.90 Forfeited/expired — — — — Outstanding at end of period 201,720 $ 17.22 210,554 $ 16.97 A summary of stock options as of the date shown below was as follows: June 30, 2021 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 179,721 21,999 201,720 Weighted-average exercise price per share $ 16.76 21.00 17.22 Aggregate intrinsic value (in thousands) $ 1,896 139 2,035 Weighted-average remaining contractual term (years) 3.9 6.0 4.1 The fair value of the Company’s restricted stock awards is estimated based on the market value of the Company’s common stock at the date of grant. Restricted stock shares are considered fully issued at the time of the grant and the grantee becomes the record owner of the restricted stock and has voting, dividend and other shareholder rights. The shares of restricted stock are non-transferable and subject to forfeiture until the restricted stock vests and any dividends with respect to the restricted stock are subject to the same restrictions, including the risk of forfeiture. Non-performance based restricted stock grants vest over the service period in equal increments over a period of two The number of shares earned under the Company’s performance-based restricted stock award agreements is based on the achievement of certain branch production goals. Compensation expense for performance-based restricted stock is recognized for the probable award level over the period estimated to achieve the performance conditions and other goals, on a straight-line basis. If the probable award level and/or the period estimated to be achieved change, compensation expense will be adjusted via a cumulative catch-up adjustment to reflect these changes. The performance conditions and goals must be achieved within five years or the awards expire. The number of performance-based shares granted presented in the table below is based upon the attainment of the maximum number of shares possible to be earned. Restricted stock activity for the periods shown below was as follows: Non-performance Based Performance-based Weighted Weighted Average Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Outstanding at December 31, 2019 161,443 $ 28.20 18,000 $ 34.46 Granted 40,594 28.55 — — Vested (14,550) 31.71 — — Forfeited (8,656) 27.22 (750) 31.79 Outstanding at June 30, 2020 178,831 $ 28.04 17,250 $ 34.57 Outstanding at December 31, 2020 129,667 28.22 2,250 34.40 Granted 33,285 26.32 — — Vested (21,749) 30.71 — — Forfeited (493) 28.80 — — Outstanding at June 30, 2021 140,710 $ 27.39 2,250 $ 34.40 A summary of restricted stock as of the date shown below was as follows: June 30, 2021 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 140,710 2,250 Weighted-average grant date fair value per share $ 27.39 $ 34.40 Aggregate fair value (in thousands) $ 3,843 $ 61 Weighted-average remaining vesting period (years) 1.7 2.3 The Company’s stock compensation plans allow employees to elect to have shares withheld to satisfy their tax liabilities related to options exercised or restricted stock vested or to pay the exercise price of the options. During the periods shown below, the shares of stock subject to options exercised, restricted stock vested, shares withheld, and shares issued were as follows: Exercised/Vested Shares Withheld Shares Issued Six Months Ended June 30, 2021 Stock options — — — Non-performance based restricted stock 21,749 (3,091) 18,658 Six Months Ended June 30, 2020 Stock options 2,524 — 2,524 Non-performance based restricted stock 14,550 (1,697) 12,853 For the six months ended June 30, 2021 and 2020, stock compensation expense was $1.1 million and $1.1 million, respectively, and for the three months ended June 30, 2021 and 2020, stock compensation expense was $574,000 and $552,000, respectively. As of June 30, 2021, there was approximately $2.8 million of total unrecognized compensation expense related to the unvested stock options, non-performance based restricted stock and performance-based restricted stock, which is expected to be recognized in the Company’s consolidated statements of income over a weighted-average period of 1.6 years. |
REGULATORY MATTERS
REGULATORY MATTERS | 6 Months Ended |
Jun. 30, 2021 | |
REGULATORY MATTERS | |
REGULATORY MATTERS | NOTE 19: REGULATORY MATTERS Banks and bank holding companies are subject to various regulatory capital requirements administered by state and federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weighting and other factors. The Company and the Bank’s Common Equity Tier 1 capital includes common stock and related capital surplus, net of treasury stock, and retained earnings. In connection with the adoption of the Basel III Capital Rules, the Company and the Bank elected to opt-out of the requirement to include most components of accumulated other comprehensive income in Common Equity Tier 1 capital. Common Equity Tier 1 capital for both the Company and the Bank is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities. The Basel III Capital Rules require the Company and the Bank to maintain: (i) a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (which is added to the 4.5% Common Equity Tier 1 capital ratio, effectively resulting in a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of at least 7.0%); (ii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the capital conservation buffer (which is added to the 6.0% Tier 1 capital ratio, effectively resulting in a minimum Tier 1 capital ratio of 8.5%); (iii) a minimum ratio of total capital (that is, Tier 1 plus Tier 2) to risk-weighted assets of at least 8.0%, plus the capital conservation buffer (which is added to the 8.0% total capital ratio, effectively resulting in a minimum total capital ratio of 10.5%); and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average quarterly assets. The Basel III Capital Rules also provide for a “countercyclical capital buffer” that is applicable to only certain covered institutions and does not have any current applicability to the Company and the Bank. The capital conservation buffer is designed to absorb losses during periods of economic stress and, as detailed above, effectively increases the minimum required risk-weighted capital ratios. Banking institutions with a ratio of Common Equity Tier 1 capital to risk-weighted assets below the effective minimum (4.5% plus the capital conservation buffer and, if applicable, the countercyclical capital buffer) will face constraints on dividends, equity repurchases, and compensation based on the amount of the shortfall. In November 2019, the federal bank regulatory agencies published a final rule, the Community Bank Leverage Ratio Framework, or the Framework, to simplify capital calculations for community banks. The Framework provides for a simple measure of capital adequacy for certain community banking organizations. The Framework is optional and is designed to reduce burden by removing requirements for calculating and reporting risk-based capital ratios. Depository institutions and depository institution holding companies that have less than $10.0 billion in total consolidated assets and meet other qualifying criteria, including a leverage ratio of greater than 9.0%, are considered qualifying community banking organizations and are eligible to opt into the Framework. A qualifying community banking organization that elects to use the community bank leverage ratio framework and that maintains a Tier 1 capital-to-adjusted total assets ratio, or leverage capital ratio, of greater than 9.0% is considered to have satisfied the generally applicable risk-based and leverage capital requirements under the Basel III Capital Rules and, if applicable, is considered to have met the “well capitalized” ratio requirements for purposes of its primary federal regulator’s prompt corrective action rules. The final rule became effective January 1, 2020, and organizations that opt into the Framework and meet the criteria established by the rule can use the Framework for regulatory reports for the year ended December 31, 2020. In April 2020, the federal bank regulatory agencies announced two interim final rules to provide relief associated with Section 4012 of the Coronavirus Aid Relief and Economic Security Act, or CARES Act. For institutions that elect the Framework, the interim rules temporarily lowered the leverage ratio requirement to 8.0% for the second quarter of 2020 through the end of calendar year 2020 and to 8.5% for the 2021 calendar year. An institution will have until January 1, 2022 before the 9.0% leverage ratio requirement is re-established. The Company determined not to opt into the Framework and will continue to compute regulatory capital ratios based on the Basel III Capital Rules discussed above. In September 2020, the federal bank regulatory agencies finalized an interim final rule that allows banking organizations to mitigate the effects of CECL on their regulatory capital computations. The rule permits banking organizations that were required to adopt CECL for purposes of GAAP (as in effect January 1, 2020) for a fiscal year beginning during the calendar year 2020, the option to delay for up to two years an estimate of CECL’s effect on regulatory capital, followed by a three-year transition period (i.e., a transition period of five years in total). The Company determined not to use the transition provision and has reported the full effect of CECL upon adoption and for each reporting period thereafter in its regulatory capital calculation and ratios. The Company is subject to the regulatory capital requirements administered by the Board of Governors of the Federal Reserve System and, for the Bank, those administered by the Office of Comptroller of Currency, or OCC. Regulatory authorities can initiate certain mandatory actions if the Company or the Bank fail to meet the minimum capital requirements, which could have a direct material effect on the Company’s financial statements. Management believes, as of June 30, 2021 and December 31, 2020, that the Company and the Bank met all capital adequacy requirements to which they were subject. financing, and suspicious activity; and (vii) performing a review of account and transaction activity for certain time periods. The Board of Directors and management are committed to taking the necessary actions to fully address the provisions of the Agreement. The Bank has appointed a Compliance Committee to oversee the Bank’s compliance with the Agreement and is working to promptly address the requirements of the Agreement. Numerous actions have already been taken or commenced by the Bank to strengthen its BSA/AML compliance practices, policies, procedures and controls and comply with the terms of the Agreement. The Bank has hired and may continue to hire third-party consultants and advisors to assist in complying with the Agreement. While subject to the Agreement, the Company expects that management and the Board of Directors will be required to focus considerable time and attention on taking corrective actions to comply with its terms. If the Bank does not successfully address the OCC’s concerns in the Agreement or fully comply with the provisions of the Agreement, the Bank could be subject to further regulatory scrutiny, civil monetary penalties, further regulatory sanctions and/or other enforcement actions. The Company or the Bank may also become subject to formal or informal enforcement actions by other regulatory agencies. Any of those events could have a material adverse impact on the Company’s future operations, financial condition, growth, or other aspects. At June 30, 2021 and December 31, 2020, the Company and the Bank were “well capitalized” based on the ratios presented below. Actual and required capital ratios for the Company and the Bank were as follows for the dates presented: Minimum Required to be Capital Required Considered Well Actual Basel III Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio June 30, 2021 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 467,035 16.46% $ 198,581 7.00% N/A N/A Bank Only $ 438,337 15.45% $ 198,565 7.00% $ 184,382 6.50% Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 467,035 16.46% $ 241,134 8.50% N/A N/A Bank Only $ 438,337 15.45% $ 241,114 8.50% $ 226,931 8.00% Total Capital to Risk-Weighted Assets: Consolidated $ 502,559 17.72% $ 297,872 10.50% N/A N/A Bank Only $ 473,858 16.70% $ 297,847 10.50% $ 283,664 10.00% Tier 1 Leverage Capital to Average Assets: Consolidated $ 467,035 11.63% $ 160,747 4.00% N/A N/A Bank Only $ 438,337 10.91% $ 160,664 4.00% $ 200,830 5.00% December 31, 2020 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 455,391 15.45% $ 206,296 7.00% N/A N/A Bank Only $ 421,952 14.32% $ 206,281 7.00% $ 191,547 6.50% Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 455,391 15.45% $ 250,502 8.50% N/A N/A Bank Only $ 421,952 14.32% $ 250,484 8.50% $ 235,750 8.00% Total Capital to Risk-Weighted Assets: Consolidated $ 492,328 16.71% $ 309,444 10.50% N/A N/A Bank Only $ 458,886 15.57% $ 309,421 10.50% $ 294,687 10.00% Tier 1 Leverage Capital to Average Assets: Consolidated $ 455,391 12.00% $ 151,797 4.00% N/A N/A Bank Only $ 421,952 11.12% $ 151,772 4.00% $ 189,715 5.00% Dividend Restrictions In the ordinary course of business, the Company may be dependent upon dividends from the Bank to provide funds for the payment of dividends to shareholders and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that year combined with the retained net profits for the preceding two years. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2021 | |
INCOME TAXES | |
INCOME TAXES | NOTE 20: INCOME TAXES The provision for income tax expense and effective tax rates for the periods shown below were as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2021 2020 2021 2020 Income tax expense $ 2,692 $ 539 $ 5,177 $ 2,407 Effective tax rate 18.70% 19.95% 19.25% 19.87% The differences between the federal statutory rate of 21% and the effective tax rates presented in the table above were largely attributable to permanent differences primarily related to tax exempt interest income and bank-owned life insurance related earnings. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 21: EARNINGS PER SHARE The computation of basic and diluted earnings per share for the periods shown below was as follows: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share data) 2021 2020 2021 2020 Net income for common shareholders $ 11,703 $ 2,163 $ 21,722 $ 9,704 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,447 24,752 24,477 24,839 Dilutive effect of outstanding stock options and unvested restricted stock awards 124 28 114 46 Diluted weighted-average shares outstanding 24,571 24,780 24,591 24,885 Earnings per share: Basic $ 0.48 $ 0.09 $ 0.89 $ 0.39 Diluted $ 0.48 $ 0.09 $ 0.88 $ 0.39 For the six months ended June 30, 2021, the Company excluded the impact of 1,800 shares of unvested restricted stock from diluted weighted-average shares as they were anti-dilutive. For the three and six months ended June 30, 2020, the Company excluded the impact of 80,000 stock options as they were anti-dilutive. The Company also excluded the impact of the performance based restricted stock awards for all periods as they are contingently issuable and the performance conditions for these issuances have not been met. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Reclassification | Reclassification |
Share Repurchase Program | Share Repurchase Program |
Accounting Standards Recently Adopted | If reference rates are discontinued, the existing contracts will be modified to replace the discontinued rate with a replacement rate. For accounting purposes, such contract modifications would have to be evaluated to determine whether the modified contract is a new contract or a continuation of an existing contract. If they are considered new contracts, the previous contract would be extinguished resulting in the acceleration of previously deferred fees and costs. Under one of the optional expedients of ASU 2020-04, modifications of contracts within the scope of Topic 310, Receivables, and 470, Debt, will be accounted for by prospectively adjusting the effective interest rates and no such evaluation is required. When elected, the optional expedient for contract modifications must be applied consistently for all eligible contracts or eligible transactions. The expedients and exceptions in this update are available to all entities starting March 12, 2020 through December 31, 2022. The Company began modifying LIBOR based loans during 2020 and applied the expedients and exceptions. The adoption of this ASU did not have a material effect on the Company, nor does the Company expect it to have a material effect in the future. |
Cash Flow Reporting | As of June 30, 2021 and December 31, 2020, the Company had $4.3 million and $8.4 million, respectively, in cash held as collateral on deposit with other financial institution counterparties related to interest rate swap transactions. Reserves maintained with the Federal Reserve Bank and cash held as collateral for interest rate swap transactions are considered restricted cash. Supplemental disclosures of cash flow information were as follows for the periods indicated below: Six Months Ended June 30, (Dollars in thousands) 2021 2020 Supplemental disclosures of cash flow information: Cash paid for taxes $ 2,059 $ 3,707 Cash paid for interest 3,198 6,444 Supplemental disclosures of non-cash flow information: Operating lease right-to-use asset obtained in exchange for lease — 1,898 Change in liability for dividends accrued (739) (6) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Supplemental disclosures of cash flow information | Six Months Ended June 30, (Dollars in thousands) 2021 2020 Supplemental disclosures of cash flow information: Cash paid for taxes $ 2,059 $ 3,707 Cash paid for interest 3,198 6,444 Supplemental disclosures of non-cash flow information: Operating lease right-to-use asset obtained in exchange for lease — 1,898 Change in liability for dividends accrued (739) (6) |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SECURITIES. | |
Amortized cost and estimated fair values of investments in securities | Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value June 30, 2021 Debt securities available for sale: State and municipal securities $ 122,667 $ 4,543 $ (103) $ 127,107 U.S. Treasury securities 11,882 79 — 11,961 U.S. agency securities: Callable debentures 3,000 2 — 3,002 Collateralized mortgage obligations 34,740 165 (316) 34,589 Mortgage-backed securities 129,232 2,662 (502) 131,392 Equity securities 1,183 — (1) 1,182 Total $ 302,704 $ 7,451 $ (922) $ 309,233 December 31, 2020 Debt securities available for sale: State and municipal securities $ 88,741 $ 4,296 $ — $ 93,037 U.S. agency securities: Collateralized mortgage obligations 35,085 347 (30) 35,402 Mortgage-backed securities 103,686 3,963 — 107,649 Equity securities 1,176 17 — 1,193 Total $ 228,688 $ 8,623 $ (30) $ 237,281 |
Amortized cost and estimated fair value of securities by contractual maturities | (Dollars in thousands) 1 Year or Less After 1 Year to 5 Years After 5 Years to 10 Years After 10 Years Total June 30, 2021 Amortized cost: Debt securities available for sale: State and municipal securities $ 986 $ — $ 9,405 $ 112,276 $ 122,667 U.S. Treasury securities — — 11,882 — 11,882 U.S. agency securities: Callable debentures — — 3,000 — 3,000 Collateralized mortgage obligations — — 4,559 30,181 34,740 Mortgage-backed securities 2 1,239 1,577 126,414 129,232 Equity securities 1,183 — — — 1,183 Total $ 2,171 $ 1,239 $ 30,423 $ 268,871 $ 302,704 Fair value: Debt securities available for sale: State and municipal securities $ 990 $ — $ 9,914 $ 116,203 $ 127,107 U.S. Treasury securities — — 11,961 — 11,961 U.S. agency securities: Callable debentures — — 3,002 — 3,002 Collateralized mortgage obligations — — 4,668 29,921 34,589 Mortgage-backed securities 2 1,305 1,673 128,412 131,392 Equity securities 1,182 — — — 1,182 Total $ 2,174 $ 1,305 $ 31,218 $ 274,536 $ 309,233 (Dollars in thousands) 1 Year or Less After 1 Year to 5 Years After 5 Years to 10 Years After 10 Years Total December 31, 2020 Amortized cost: Debt securities available for sale: State and municipal securities $ 509 $ 1,292 $ 9,154 $ 77,786 $ 88,741 U.S. agency securities: Collateralized mortgage obligations — — 4,910 30,175 35,085 Mortgage-backed securities 33 1,485 798 101,370 103,686 Equity securities 1,176 — — — 1,176 Total $ 1,718 $ 2,777 $ 14,862 $ 209,331 $ 228,688 Fair value: Debt securities available for sale: State and municipal securities $ 512 $ 1,298 $ 9,540 $ 81,687 $ 93,037 U.S. agency securities: Collateralized mortgage obligations — — 5,075 30,327 35,402 Mortgage-backed securities 33 1,565 829 105,222 107,649 Equity securities 1,193 — — — 1,193 Total $ 1,738 $ 2,863 $ 15,444 $ 217,236 $ 237,281 |
Securities with unrealized losses, aggregated by category and length of time | Less than Twelve Months Twelve Months or More Gross Gross Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses June 30, 2021 Debt securities available for sale: State and municipal securities $ 16,253 $ (103) $ — $ — U.S. Treasury securities — — — — U.S. agency securities: Callable debentures — — — — Collateralized mortgage obligations 20,184 (315) 107 (1) Mortgage-backed securities 40,748 (502) — — Equity securities 1,183 (1) — — $ 78,368 $ (921) $ 107 $ (1) December 31, 2020 Debt securities available for sale: State and municipal securities $ 263 $ — $ — $ — U.S. agency securities: Collateralized mortgage obligations 6,913 (30) — — Mortgage-backed securities — — — — Equity securities — — — — $ 7,176 $ (30) $ — $ — |
EQUITY INVESTMENTS (Tables)
EQUITY INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
EQUITY INVESTMENTS | |
Unconsolidated investments considered equity securities | June 30, December 31, (Dollars in thousands) 2021 2020 Federal Reserve Bank stock $ 9,271 $ 9,271 Federal Home Loan Bank stock 3,955 5,941 The Independent Bankers Financial Corporation stock 141 141 Community Reinvestment Act investments 3,426 3,299 $ 16,793 $ 18,652 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
LOANS | |
Loans, by loan class | (Dollars in thousands) June 30, 2021 December 31, 2020 Commercial and industrial $ 658,733 24.0% $ 742,957 25.3% Real estate: Commercial real estate 1,060,968 38.7% 1,041,998 35.5% Construction and development 426,007 15.5% 522,705 17.8% 1-4 family residential 211,328 7.7% 239,872 8.2% Multi-family residential 265,252 9.7% 258,346 8.8% Consumer 31,444 1.1% 33,884 1.1% Agriculture 8,283 0.4% 8,670 0.3% Other 78,607 2.9% 88,238 3.0% Total gross loans 2,740,622 100.0% 2,936,670 100.0% Less allowance for credit losses for loans (37,183) (40,637) Less deferred loan fees and unearned discounts (10,318) (9,880) Less loans held for sale (808) (2,673) Loans, net $ 2,692,313 $ 2,883,480 |
Loan participations purchased and sold | Participations Participations (Dollars in thousands) Purchased Sold June 30, 2021 Construction and development $ — $ 22 June 30, 2020 Commercial and industrial — 566 Commercial real estate 2,500 — |
LOAN PERFORMANCE (Tables)
LOAN PERFORMANCE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Aging analysis of past due loans, by loan class | 90 Days or 90 Days 30 to 59 Days 60 to 89 Days Greater Total Total Past Due and (Dollars in thousands) Past Due Past Due Past Due Past Due Current Loans Total Loans Still Accruing June 30, 2021 Commercial and industrial $ — $ — $ — $ — $ 658,733 $ 658,733 $ — Real estate: Commercial real estate — — — — 1,060,968 1,060,968 — Construction and development — — — — 426,007 426,007 — 1-4 family residential 17 — 217 234 211,094 211,328 — Multi-family residential — — — — 265,252 265,252 — Consumer 22 — — 22 31,422 31,444 — Agriculture — — — — 8,283 8,283 — Other — — — — 78,607 78,607 — Total loans $ 39 $ — $ 217 $ 256 $ 2,740,366 $ 2,740,622 $ — December 31, 2020 Commercial and industrial $ 51 $ 2,055 $ 2,269 $ 4,375 $ 738,582 $ 742,957 $ — Real estate: Commercial real estate — — — — 1,041,998 1,041,998 — Construction and development — — — — 522,705 522,705 — 1-4 family residential 1,357 19 106 1,482 238,390 239,872 — Multi-family residential — — — — 258,346 258,346 — Consumer 5 — — 5 33,879 33,884 — Agriculture 50 — — 50 8,620 8,670 — Other — — — — 88,238 88,238 — Total loans $ 1,463 $ 2,074 $ 2,375 $ 5,912 $ 2,930,758 $ 2,936,670 $ — |
Nonaccrual loans, segregated by loan class | June 30, December 31, (Dollars in thousands) 2021 2020 Commercial and industrial $ 10,038 $ 12,588 Real estate: Commercial real estate 10,572 10,665 Construction and development — 238 1-4 family residential 363 526 Total nonaccrual loans $ 20,973 $ 24,017 |
Schedule of TDRs | Post-modification Recorded Investment Extended Maturity, Pre-modification Extended Restructured Outstanding Maturity and Payments Number Recorded Restructured Extended Restructured and Adjusted (Dollars in thousands) of Loans Investment Payments Maturity Payments Interest Rate June 30, 2021 Commercial and industrial 3 $ 3,256 $ 3,256 $ — $ — $ — Real estate: Commercial real estate 1 1,206 1,206 — — — 1-4 family residential 1 1,548 1,548 — — — Total 5 $ 6,010 $ 6,010 $ — $ — $ — June 30, 2020 Commercial and industrial 17 $ 3,131 $ 2,899 $ — $ — $ 232 Real estate: Commercial real estate 8 9,715 9,715 — — — Construction and development 5 12,564 12,032 — — 532 1-4 family residential 5 1,629 1,651 — — — Total 35 $ 27,039 $ 26,297 $ — $ — $ 764 |
Outstanding TDRs and other loans individually evaluated for credit losses | Troubled Debt Restructurings (Dollars in thousands) Accruing Non-Accrual Total Other Non-Accrual Other Accruing Total Loans Individually Evaluated June 30, 2021 Commercial and industrial $ 5,728 $ 7,497 $ 13,225 $ 2,541 $ 746 $ 16,512 Real estate: Commercial real estate 7,192 10,512 17,704 60 — 17,764 Construction and development 12,323 — 12,323 — — 12,323 1-4 family residential 3,142 187 3,329 176 — 3,505 Consumer — — — — 90 90 Other 3,404 — 3,404 — — 3,404 Total $ 31,789 $ 18,196 $ 49,985 $ 2,777 $ 836 $ 53,598 December 31, 2020 Commercial and industrial $ 2,594 $ 8,228 $ 10,822 $ 4,360 $ 746 $ 15,928 Real estate: Commercial real estate 8,103 10,601 18,704 64 — 18,768 Construction and development 12,648 238 12,886 — — 12,886 1-4 family residential 1,684 106 1,790 420 — 2,210 Other 7,851 — 7,851 — — 7,851 Total $ 32,880 $ 19,173 $ 52,053 $ 4,844 $ 746 $ 57,643 |
TDRs with payment defaults after restructuring | |
Schedule of TDRs | June 30, 2021 June 30, 2020 Number Number (Dollars in thousands) of Loans Balance of Loans Balance Commercial and industrial 3 $ 5,892 — $ — Real estate: Commercial real estate 1 4,722 — — Construction and development — — 2 506 Total 4 $ 10,614 2 $ 506 |
ALLOWANCE FOR CREDIT LOSSES (Ta
ALLOWANCE FOR CREDIT LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
ALLOWANCE FOR CREDIT LOSSES | |
Loans by risk grades, loan class and vintage | Loans by risk grades, loan class and vintage, at June 30, 2021 were as follows: (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Pass $ 201,597 $ 108,681 $ 71,587 $ 30,328 $ 10,764 $ 8,500 $ 199,757 $ 5,806 $ 637,020 Special mention — — — 24 — — 3,256 — 3,280 Substandard — 1,000 2,102 7,310 5 426 1,531 6,059 18,433 Total commercial and industrial 201,597 109,681 73,689 37,662 10,769 8,926 204,544 11,865 658,733 Commercial real estate: Pass 81,102 234,312 246,001 193,682 102,879 113,556 34,626 4,504 1,010,662 Special mention — 1,844 879 — — 1,915 4,834 — 9,472 Substandard — 1,317 11,349 14,751 359 2,208 10,850 — 40,834 Total commercial real estate 81,102 237,473 258,229 208,433 103,238 117,679 50,310 4,504 1,060,968 Construction and development: Pass 67,028 124,652 89,754 38,963 18,892 3,313 70,596 486 413,684 Substandard — — — 1,500 10,207 616 — — 12,323 Total construction and development 67,028 124,652 89,754 40,463 29,099 3,929 70,596 486 426,007 1-4 family residential: Pass 14,385 22,825 29,942 38,592 25,978 66,800 5,024 973 204,519 Special mention — — — — — 1,524 — — 1,524 Substandard — 1,547 525 912 165 630 — 1,506 5,285 Total 1-4 family residential 14,385 24,372 30,467 39,504 26,143 68,954 5,024 2,479 211,328 Multi-family residential: Pass 10,280 20,490 2,370 51,712 10,236 168,587 1,577 — 265,252 Total multi-family residential 10,280 20,490 2,370 51,712 10,236 168,587 1,577 — 265,252 Consumer: Pass 4,915 5,441 2,045 1,325 1,532 68 15,444 484 31,254 Substandard — — — — — — 190 — 190 Total consumer 4,915 5,441 2,045 1,325 1,532 68 15,634 484 31,444 Agriculture: Pass 2,979 1,063 54 111 72 12 3,736 191 8,218 Substandard — — — — — 21 44 — 65 Total agriculture 2,979 1,063 54 111 72 33 3,780 191 8,283 Other: Pass 10,798 7,439 1,393 1,850 16 1,243 52,463 — 75,202 Substandard — 977 — — — 1,214 1,214 — 3,405 Total other 10,798 8,416 1,393 1,850 16 2,457 53,677 — 78,607 Total Pass 393,084 524,903 443,146 356,563 170,369 362,079 383,223 12,444 2,645,811 Special mention — 1,844 879 24 — 3,439 8,090 — 14,276 Substandard — 4,841 13,976 24,473 10,736 5,115 13,829 7,565 80,535 Total $ 393,084 $ 531,588 $ 458,001 $ 381,060 $ 181,105 $ 370,633 $ 405,142 $ 20,009 $ 2,740,622 Loans by risk grades, loan class and vintage, at December 31, 2020 were as follows: (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Pass $ 349,697 $ 81,131 $ 46,973 $ 13,161 $ 8,349 $ 3,432 $ 214,160 $ 3,562 $ 720,465 Special mention — — 33 — — — 3,371 — 3,404 Substandard 1,001 2,633 6,177 15 20 2,021 779 6,442 19,088 Total commercial and industrial 350,698 83,764 53,183 13,176 8,369 5,453 218,310 10,004 742,957 Commercial real estate: Pass 262,072 210,954 196,630 138,424 68,468 84,453 30,020 9,482 1,000,503 Special mention — 1,224 — — — 1,390 — 4,905 7,519 Substandard — 11,532 9,599 476 1,059 1,985 9,325 — 33,976 Total commercial real estate 262,072 223,710 206,229 138,900 69,527 87,828 39,345 14,387 1,041,998 Construction and development: Pass 165,894 163,658 92,455 20,146 6,707 273 53,800 — 502,933 Substandard — 238 8,386 10,532 — 616 — — 19,772 Total construction and development 165,894 163,896 100,841 30,678 6,707 889 53,800 — 522,705 1-4 family residential: Pass 27,002 30,978 48,561 34,970 24,386 57,122 7,004 631 230,654 Special mention 1,548 — — — 1,617 — — — 3,165 Substandard — 534 1,211 1,571 15 1,215 — 1,507 6,053 Total 1-4 family residential 28,550 31,512 49,772 36,541 26,018 58,337 7,004 2,138 239,872 Multi-family residential: Pass 20,823 3,119 36,971 10,655 2,153 184,539 86 — 258,346 Total multi-family residential 20,823 3,119 36,971 10,655 2,153 184,539 86 — 258,346 Consumer: Pass 8,937 3,073 1,855 1,875 146 23 17,573 402 33,884 Total consumer 8,937 3,073 1,855 1,875 146 23 17,573 402 33,884 Agriculture: Pass 3,937 105 338 86 16 — 4,108 7 8,597 Substandard — — — — — 23 50 — 73 Total agriculture 3,937 105 338 86 16 23 4,158 7 8,670 Other: Pass 14,624 3,239 3,562 24 84 1,250 57,603 — 80,386 Substandard 1,211 — — — 1,232 — 5,409 — 7,852 Total other 15,835 3,239 3,562 24 1,316 1,250 63,012 — 88,238 Total Pass 852,986 496,257 427,345 219,341 110,309 331,092 384,354 14,084 2,835,768 Special mention 1,548 1,224 33 — 1,617 1,390 3,371 4,905 14,088 Substandard 2,212 14,937 25,373 12,594 2,326 5,860 15,563 7,949 86,814 Total $ 856,746 $ 512,418 $ 452,751 $ 231,935 $ 114,252 $ 338,342 $ 403,288 $ 26,938 $ 2,936,670 |
Loans by risk grades and loan class | (Dollars in thousands) Pass Special Mention Substandard Total Loans June 30, 2021 Commercial and industrial $ 637,020 $ 3,280 $ 18,433 $ 658,733 Real estate: Commercial real estate 1,010,662 9,472 40,834 1,060,968 Construction and development 413,684 — 12,323 426,007 1-4 family residential 204,519 1,524 5,285 211,328 Multi-family residential 265,252 — — 265,252 Consumer 31,254 — 190 31,444 Agriculture 8,218 — 65 8,283 Other 75,202 — 3,405 78,607 Total loans $ 2,645,811 $ 14,276 $ 80,535 $ 2,740,622 December 31, 2020 Commercial and industrial $ 720,465 $ 3,404 $ 19,088 $ 742,957 Real estate: Commercial real estate 1,000,503 7,519 33,976 1,041,998 Construction and development 502,933 — 19,772 522,705 1-4 family residential 230,654 3,165 6,053 239,872 Multi-family residential 258,346 — — 258,346 Consumer 33,884 — — 33,884 Agriculture 8,597 — 73 8,670 Other 80,386 — 7,852 88,238 Total loans $ 2,835,768 $ 14,088 $ 86,814 $ 2,936,670 |
Loans individually evaluated and collectively evaluated | June 30, 2021 December 31, 2020 Individually Collectively Individually Collectively Evaluated Evaluated Total Evaluated Evaluated Total (Dollars in thousands) Loans Loans Loans Loans Loans Loans Commercial and industrial $ 16,512 $ 642,221 $ 658,733 $ 15,928 $ 727,029 $ 742,957 Real estate: Commercial real estate 17,764 1,043,204 1,060,968 18,768 1,023,230 1,041,998 Construction and development 12,323 413,684 426,007 12,886 509,819 522,705 1-4 family residential 3,505 207,823 211,328 2,210 237,662 239,872 Multi-family residential — 265,252 265,252 — 258,346 258,346 Consumer 90 31,354 31,444 — 33,884 33,884 Agriculture — 8,283 8,283 — 8,670 8,670 Other 3,404 75,203 78,607 7,851 80,387 88,238 Total $ 53,598 $ 2,687,024 $ 2,740,622 $ 57,643 $ 2,879,027 $ 2,936,670 |
Activity in the total ACL for loans | Real Estate Commercial Construction and Commercial and 1-4 Family Multi-family (Dollars in thousands) Industrial Real Estate Development Residential Residential Consumer Agriculture Other Total June 30, 2021 Beginning balance $ 13,035 $ 13,798 $ 6,089 $ 2,578 $ 2,513 $ 440 $ 137 $ 2,047 $ 40,637 Provision (recapture) (1,083) (538) (1,636) (406) (131) (46) (64) — (3,904) Charge-offs (495) — — — — (3) — — (498) Recoveries 803 — — — — 103 42 — 948 Net recoveries 308 — — — — 100 42 — 450 Ending balance $ 12,260 $ 13,260 $ 4,453 $ 2,172 $ 2,382 $ 494 $ 115 $ 2,047 $ 37,183 Period-end amount allocated to: Specific reserve $ 4,803 $ 252 $ — $ — $ — $ 90 $ — $ 536 $ 5,681 General reserve 7,457 13,008 4,453 2,172 2,382 404 115 1,511 31,502 Total $ 12,260 $ 13,260 $ 4,453 $ 2,172 $ 2,382 $ 494 $ 115 $ 2,047 $ 37,183 June 30, 2020 Beginning balance $ 7,671 $ 7,975 $ 4,446 $ 2,257 $ 1,699 $ 388 $ 74 $ 770 $ 25,280 Impact of CECL adoption 852 (140) 100 (275) 294 (25) 64 4 874 Provision (recapture) 3,169 4,613 2,504 1,256 887 258 (16) 605 13,276 Charge-offs (79) (24) — (66) — (103) — — (272) Recoveries 495 — — 1 — 11 12 1 520 Net (charge-offs) recoveries 416 (24) — (65) — (92) 12 1 248 Ending balance $ 12,108 $ 12,424 $ 7,050 $ 3,173 $ 2,880 $ 529 $ 134 $ 1,380 $ 39,678 Period-end amount allocated to: Specific reserve $ 2,403 $ — $ — $ — $ — $ — $ — $ 468 $ 2,871 General reserve 9,705 12,424 7,050 3,173 2,880 529 134 912 36,807 Total $ 12,108 $ 12,424 $ 7,050 $ 3,173 $ 2,880 $ 529 $ 134 $ 1,380 $ 39,678 |
ACL for loans by loan class | June 30, 2021 December 31, 2020 (Dollars in thousands) Amount Percent Amount Percent Commercial and industrial $ 12,260 33.0 % $ 13,035 32.1 % Real estate: Commercial real estate 13,260 35.7 % 13,798 34.0 % Construction and development 4,453 12.0 % 6,089 15.0 % 1-4 family residential 2,172 5.8 % 2,578 6.3 % Multi-family residential 2,382 6.4 % 2,513 6.2 % Consumer 494 1.3 % 440 1.1 % Agriculture 115 0.3 % 137 0.3 % Other 2,047 5.5 % 2,047 5.0 % Total allowance for credit losses for loans $ 37,183 100.0 % $ 40,637 100.0 % Loans excluding loans held for sale 2,729,496 2,924,117 ACL for loans to loans excluding loans held for sale 1.36% 1.39% |
Charge-offs and recoveries by loan class and vintage | Charge-offs and recoveries by loan class and vintage for the six months ended June 30, 2021 were as follows: (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Converted Revolving Loans Total Commercial and industrial: Charge-off $ — $ — $ (191) $ (260) $ — $ — $ — $ (44) $ (495) Recovery — — 3 29 40 703 — 28 803 Total commercial and industrial — — (188) (231) 40 703 — (16) 308 Consumer: Charge-off — — (3) — — — — — (3) Recovery 2 — — 2 — 99 — — 103 Total consumer 2 — (3) 2 — 99 — — 100 Agriculture: Recovery — — — — — 42 — — 42 Total agriculture — — — — — 42 — — 42 Total: Charge-off — — (194) (260) — — — (44) (498) Recovery 2 — 3 31 40 844 — 28 948 Total $ 2 $ — $ (191) $ (229) $ 40 $ 844 $ — $ (16) $ 450 Charge-offs and recoveries by loan class and vintage for the six months ended June 30, 2020 were as follows: (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Total Commercial and industrial: Charge-off $ — $ — $ — $ (36) $ (42) $ — $ (1) $ (79) Recovery — 2 92 33 19 155 194 495 Total commercial and industrial — 2 92 (3) (23) 155 193 416 Commercial real estate: Charge-off — — — — — (24) — (24) Total commercial real estate — — — — — (24) — (24) 1-4 family residential: Charge-off — (65) — — — (1) — (66) Recovery — — — — — 1 — 1 Total 1-4 family residential — (65) — — — — — (65) Consumer: Charge-off — — (8) (95) — — — (103) Recovery 10 — — — — 1 — 11 Total consumer 10 — (8) (95) — 1 — (92) Agriculture: Recovery — — — — 12 — — 12 Total agriculture — — — — 12 — — 12 Other: Recovery — — — 1 — — — 1 Total other — — — 1 — — — 1 Total: Charge-off — (65) (8) (131) (42) (25) (1) (272) Recovery 10 2 92 34 31 157 194 520 Total $ 10 $ (63) $ 84 $ (97) $ (11) $ 132 $ 193 $ 248 |
Activity in the ACL for unfunded commitments | June 30, (Dollars in thousands) 2021 2020 Beginning balance $ 4,177 $ 378 Impact of CECL adoption — 2,981 Provision (recapture) (767) 1,643 Ending balance $ 3,410 $ 5,002 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
PREMISES AND EQUIPMENT | |
Components of premises and equipment | June 30, December 31, (Dollars in thousands) 2021 2020 Land $ 15,484 $ 15,484 Buildings and leasehold improvements 64,120 64,113 Furniture and equipment 17,014 16,777 Vehicles 248 216 Construction in progress 581 388 97,447 96,978 Less accumulated depreciation (37,460) (35,826) Premises and equipment, net $ 59,987 $ 61,152 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Other intangibles | Weighted- Average Remaining Gross Net Amortization Intangible Accumulated Intangible (Dollars in thousands) Period Assets Amortization Assets June 30, 2021 Core deposits 2.8 years $ 13,750 $ (13,433) $ 317 Customer relationships 7.5 years 6,629 (3,314) 3,315 Servicing assets 11.4 years 451 (237) 214 Total other intangible assets, net $ 20,830 $ (16,984) $ 3,846 December 31, 2020 Core deposits 3.2 years $ 13,750 $ (13,305) $ 445 Customer relationships 8.0 years 6,629 (3,093) 3,536 Servicing assets 10.4 years 399 (209) 190 Total other intangible assets, net $ 20,778 $ (16,607) $ 4,171 |
Changes in related servicing assets | June 30, (Dollars in thousands) 2021 2020 Balance at beginning of year $ 190 $ 189 Increase from loan sales 53 9 Decrease from serviced loans paid off or foreclosed (1) — Amortization (28) (55) Balance at end of period $ 214 $ 143 |
BANK OWNED LIFE INSURANCE (Tabl
BANK OWNED LIFE INSURANCE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
BANK OWNED LIFE INSURANCE. | |
Bank-owned life insurance policies and net change in cash surrender value | June 30, (Dollars in thousands) 2021 2020 Balance at beginning of period $ 72,338 $ 71,881 Net change in cash surrender value 780 828 Balance at end of period $ 73,118 $ 72,709 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
DEPOSITS | |
Schedule of deposits | June 30, December 31, (Dollars in thousands) 2021 2020 Interest-bearing demand accounts $ 375,543 $ 380,175 Money market accounts 1,101,091 1,039,617 Savings accounts 115,823 108,167 Certificates and other time deposits, $100,000 or greater 142,343 152,592 Certificates and other time deposits, less than $100,000 125,202 144,818 Total interest-bearing deposits 1,860,002 1,825,369 Noninterest-bearing deposits 1,556,784 1,476,425 Total deposits $ 3,416,786 $ 3,301,794 |
LINES OF CREDIT (Tables)
LINES OF CREDIT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
LINES OF CREDIT | |
Scheduled maturities of Federal Home Loan Bank advances | (Dollars in thousands) June 30, 2021 2021 $ — 2022 10,000 2023 20,000 2024 20,000 2025 — Thereafter — Total $ 50,000 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
FAIR VALUE DISCLOSURES | |
Financial assets and financial liabilities measured at fair value on a recurring basis | June 30, December 31, (Dollars in thousands) 2021 2020 Fair value of financial assets: Level 1 inputs: Equity securities $ 1,182 $ 1,193 Debt securities available for sale - U.S. Treasury securities 11,961 — Level 2 inputs: Debt securities available for sale: State and municipal securities 127,107 93,037 U.S. agency securities: Callable debentures 3,002 — Collateralized mortgage obligations 34,589 35,402 Mortgage-backed securities 131,392 107,649 Interest rate swaps 5,064 8,618 Level 3 inputs: Credit risk participation agreement 17 40 Total fair value of financial assets $ 314,314 $ 245,939 Fair value of financial liabilities: Level 2 inputs: Interest rate swaps $ 5,064 $ 8,618 Total fair value of financial liabilities $ 5,064 $ 8,618 |
Financial assets measured at fair value on a non-recurring basis are certain impaired loans | June 30, 2021 December 31, 2020 (Dollars in thousands) Recorded Investment Specific ACL Net Recorded Investment Specific ACL Net Level 3 inputs: Loans evaluated individually Commercial and industrial $ 9,860 $ 4,803 $ 5,057 $ 10,509 $ 5,004 $ 5,505 Commercial real estate 5,705 252 5,453 5,727 323 5,404 Consumer 90 90 — — — — Other 2,190 536 1,654 1,232 205 1,027 Total $ 17,845 $ 5,681 $ 12,164 $ 17,468 $ 5,532 $ 11,936 |
Fair market values and carrying amounts of financial instruments that are reported at cost | June 30, 2021 December 31, 2020 Carrying Carrying (Dollars in thousands) Fair Value Amount Fair Value Amount Financial assets: Level 1 inputs: Cash and due from banks $ 788,409 $ 788,409 $ 538,007 $ 538,007 Level 2 inputs: Bank-owned life insurance 73,118 73,118 72,338 72,338 Accrued interest receivable 11,509 11,509 13,350 13,350 Servicing asset 214 214 190 190 Level 3 inputs: Loans, including held for sale, net 2,723,450 2,693,121 2,919,854 2,886,153 Other investments 16,793 16,793 18,652 18,652 Total financial assets $ 3,613,493 $ 3,583,164 $ 3,562,391 $ 3,528,690 Financial liabilities: Level 1 inputs: Noninterest-bearing deposits $ 1,556,784 $ 1,556,784 $ 1,476,425 $ 1,476,425 Level 2 inputs: Interest-bearing deposits 1,896,430 1,860,002 1,894,558 1,825,369 Federal Home Loan Bank advances 51,222 50,000 51,726 50,000 Accrued interest payable 260 260 398 398 Total financial liabilities $ 3,504,696 $ 3,467,046 $ 3,423,107 $ 3,352,192 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Derivative instruments outstanding | Weighted Average Notional Fair Maturity (Dollars in thousands) Classification Amounts Value Fixed Rate Floating Rate (Years) June 30, 2021 Interest rate swaps with customers Other assets $ 99,006 $ 4,453 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 4.42 Interest rate swaps with financial institutions Other assets 36,862 321 3.50% LIBOR 1M + 2.50% 8.75 Interest rate swaps with customers Other assets 5,196 290 4.99% U.S. Prime 6.46 Interest rate swaps with financial institutions Other liabilities 5,196 (290) 4.99% U.S. Prime 6.46 Interest rate swaps with financial institutions Other liabilities 99,006 (4,453) 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 4.42 Interest rate swaps with customers Other liabilities 36,862 (321) 3.50% LIBOR 1M + 2.50% 8.75 Credit risk participation agreement with financial institution Other assets 13,823 17 3.50% LIBOR 1M + 2.50% 8.75 Total derivatives $ 295,951 $ 17 December 31, 2020 Interest rate swaps with customers Other assets $ 141,241 $ 8,146 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.14 Interest rate swaps with customers Other assets 5,250 472 4.99% U.S. Prime 6.96 Interest rate swaps with financial institutions Other liabilities 5,250 (472) 4.99% U.S. Prime 6.96 Interest rate swaps with financial institutions Other liabilities 141,241 (8,146) 3.25% - 5.89% LIBOR 1M + 2.50% - 3.00% 6.14 Credit risk participation agreement with financial institution Other assets 14,084 40 3.50% LIBOR 1M + 2.50% 9.24 Total derivatives $ 307,066 $ 40 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
OPERATING LEASES | |
Lease costs | Six Months Ended June 30, (Dollars in thousands) 2021 2020 Operating lease cost $ 970 $ 993 Short-term lease cost 9 28 Sublease income (314) (63) Total lease cost $ 665 $ 958 |
Schedule of other information related to operating leases | Six Months Ended June 30, (Dollars in thousands) 2021 2020 Amortization of lease right-to-use asset $ 771 $ 743 Accretion of lease liabilities 199 249 Cash paid for amounts included in the measurement of lease liabilities 1,055 1,143 Weighted-average discount rate 2.64% 2.70% Weighted-average remaining lease term in years 10.7 11.3 |
Maturity analysis of operating lease liabilities | (Dollars in thousands) June 30, 2021 2021 $ 2,021 2022 2,241 2023 2,138 2024 1,798 2025 1,786 Thereafter 8,476 Total undiscounted lease liability 18,460 Less: Discount on cash flows (2,870) Total operating lease liability $ 15,590 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | |
Commitments to extend credit and standby letters of credit | June 30, December 31, (Dollars in thousands) 2021 2020 Commitments to extend credit, variable interest rate $ 625,824 $ 659,385 Commitments to extend credit, fixed interest rate 66,757 80,346 Total commitments $ 692,581 $ 739,731 Standby letters of credit $ 23,022 $ 26,078 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
STOCK-BASED COMPENSATION | |
Summary of restricted stock | June 30, 2021 Restricted Stock Non-performance Based Performance-based Number of shares underlying restricted stock 140,710 2,250 Weighted-average grant date fair value per share $ 27.39 $ 34.40 Aggregate fair value (in thousands) $ 3,843 $ 61 Weighted-average remaining vesting period (years) 1.7 2.3 |
Shares of stock options exercised, restricted stock vested, shares withheld and shares issued | Exercised/Vested Shares Withheld Shares Issued Six Months Ended June 30, 2021 Stock options — — — Non-performance based restricted stock 21,749 (3,091) 18,658 Six Months Ended June 30, 2020 Stock options 2,524 — 2,524 Non-performance based restricted stock 14,550 (1,697) 12,853 |
Stock options | |
STOCK-BASED COMPENSATION | |
Stock option activity | Six Months Ended June 30, 2021 2020 Number of Weighted Number of Weighted Shares Average Shares Average Underlying Exercise Underlying Exercise Options Price Options Price Outstanding at beginning of period 201,720 $ 17.22 213,078 $ 16.92 Granted — — — — Exercised — — (2,524) 12.90 Forfeited/expired — — — — Outstanding at end of period 201,720 $ 17.22 210,554 $ 16.97 |
Summary of stock options | June 30, 2021 Stock Options Exercisable Unvested Outstanding Number of shares underlying options 179,721 21,999 201,720 Weighted-average exercise price per share $ 16.76 21.00 17.22 Aggregate intrinsic value (in thousands) $ 1,896 139 2,035 Weighted-average remaining contractual term (years) 3.9 6.0 4.1 |
Unvested restricted stock | |
STOCK-BASED COMPENSATION | |
Stock option activity | Non-performance Based Performance-based Weighted Weighted Average Average Number of Grant Date Number of Grant Date Shares Fair Value Shares Fair Value Outstanding at December 31, 2019 161,443 $ 28.20 18,000 $ 34.46 Granted 40,594 28.55 — — Vested (14,550) 31.71 — — Forfeited (8,656) 27.22 (750) 31.79 Outstanding at June 30, 2020 178,831 $ 28.04 17,250 $ 34.57 Outstanding at December 31, 2020 129,667 28.22 2,250 34.40 Granted 33,285 26.32 — — Vested (21,749) 30.71 — — Forfeited (493) 28.80 — — Outstanding at June 30, 2021 140,710 $ 27.39 2,250 $ 34.40 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
REGULATORY MATTERS | |
Actual and required capital ratios for the Company and Bank | Minimum Required to be Capital Required Considered Well Actual Basel III Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio June 30, 2021 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 467,035 16.46% $ 198,581 7.00% N/A N/A Bank Only $ 438,337 15.45% $ 198,565 7.00% $ 184,382 6.50% Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 467,035 16.46% $ 241,134 8.50% N/A N/A Bank Only $ 438,337 15.45% $ 241,114 8.50% $ 226,931 8.00% Total Capital to Risk-Weighted Assets: Consolidated $ 502,559 17.72% $ 297,872 10.50% N/A N/A Bank Only $ 473,858 16.70% $ 297,847 10.50% $ 283,664 10.00% Tier 1 Leverage Capital to Average Assets: Consolidated $ 467,035 11.63% $ 160,747 4.00% N/A N/A Bank Only $ 438,337 10.91% $ 160,664 4.00% $ 200,830 5.00% December 31, 2020 Common Equity Tier 1 to Risk-Weighted Assets: Consolidated $ 455,391 15.45% $ 206,296 7.00% N/A N/A Bank Only $ 421,952 14.32% $ 206,281 7.00% $ 191,547 6.50% Tier 1 Capital to Risk-Weighted Assets: Consolidated $ 455,391 15.45% $ 250,502 8.50% N/A N/A Bank Only $ 421,952 14.32% $ 250,484 8.50% $ 235,750 8.00% Total Capital to Risk-Weighted Assets: Consolidated $ 492,328 16.71% $ 309,444 10.50% N/A N/A Bank Only $ 458,886 15.57% $ 309,421 10.50% $ 294,687 10.00% Tier 1 Leverage Capital to Average Assets: Consolidated $ 455,391 12.00% $ 151,797 4.00% N/A N/A Bank Only $ 421,952 11.12% $ 151,772 4.00% $ 189,715 5.00% |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
INCOME TAXES | |
Provision for income tax expense and effective tax rates | Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2021 2020 2021 2020 Income tax expense $ 2,692 $ 539 $ 5,177 $ 2,407 Effective tax rate 18.70% 19.95% 19.25% 19.87% |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE | |
Computations of basic and diluted earnings per share | Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except per share data) 2021 2020 2021 2020 Net income for common shareholders $ 11,703 $ 2,163 $ 21,722 $ 9,704 Weighted-average shares (thousands) Basic weighted-average shares outstanding 24,447 24,752 24,477 24,839 Dilutive effect of outstanding stock options and unvested restricted stock awards 124 28 114 46 Diluted weighted-average shares outstanding 24,571 24,780 24,591 24,885 Earnings per share: Basic $ 0.48 $ 0.09 $ 0.89 $ 0.39 Diluted $ 0.48 $ 0.09 $ 0.88 $ 0.39 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Details) | Jun. 30, 2021location |
Operating branches | 35 |
Houston market area | |
Operating branches | 19 |
Beaumont/East Texas market area | |
Operating branches | 15 |
Dallas market area | |
Operating branches | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share Repurchase Program (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Number of shares repurchased | 181,089 | 240,445 |
Shares repurchased and retired, price per share | $ 27.44 | $ 22.29 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounting Standards Recently Adopted (Details) | Jun. 30, 2021 |
LIBOR | Interest rate swaps | |
Accounting Standards Recently Adopted | |
Percentage of Loans | 7.50% |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash flow reporting (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Cash collateral used in interest rate swap transactions | $ 4,300 | $ 8,400 | |
Supplemental disclosures of cash flow information: | |||
Cash paid for taxes | 2,059 | $ 3,707 | |
Cash paid for interest | 3,198 | 6,444 | |
Supplemental disclosures of non-cash flow information: | |||
Operating lease right-to-use asset obtained in exchange for lease | 1,898 | ||
Change in liability for dividends accrued | $ (739) | $ (6) |
SECURITIES - Amortized cost and
SECURITIES - Amortized cost and estimated fair values of investments in securities (Details) - Securities available for sale - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt securities available for sale: | ||
Amortized cost | $ 302,704 | $ 228,688 |
Gross Unrealized Gains | 7,451 | 8,623 |
Gross Unrealized Losses | (922) | (30) |
Fair Value | 309,233 | 237,281 |
State and municipal securities | ||
Debt securities available for sale: | ||
Amortized cost | 122,667 | 88,741 |
Gross Unrealized Gains | 4,543 | 4,296 |
Gross Unrealized Losses | (103) | |
Fair Value | 127,107 | 93,037 |
U.S. Treasury securities | ||
Debt securities available for sale: | ||
Amortized cost | 11,882 | |
Gross Unrealized Gains | 79 | |
Fair Value | 11,961 | |
Callable debentures | ||
Debt securities available for sale: | ||
Amortized cost | 3,000 | |
Gross Unrealized Gains | 2 | |
Fair Value | 3,002 | |
Collateralized mortgage obligations | ||
Debt securities available for sale: | ||
Amortized cost | 34,740 | 35,085 |
Gross Unrealized Gains | 165 | 347 |
Gross Unrealized Losses | (316) | (30) |
Fair Value | 34,589 | 35,402 |
Mortgage-backed securities | ||
Debt securities available for sale: | ||
Amortized cost | 129,232 | 103,686 |
Gross Unrealized Gains | 2,662 | 3,963 |
Gross Unrealized Losses | (502) | |
Fair Value | 131,392 | 107,649 |
Equity securities | ||
Debt securities available for sale: | ||
Amortized cost | 1,183 | 1,176 |
Gross Unrealized Gains | 17 | |
Gross Unrealized Losses | (1) | |
Fair Value | $ 1,182 | $ 1,193 |
SECURITIES - Amortized cost a_2
SECURITIES - Amortized cost and estimated fair values of securities by contractual maturities (Details) - Securities available for sale - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Available for Sale - Amortized Cost | ||
Amortized cost, 1 year or less | $ 2,171 | $ 1,718 |
Amortized cost, 1 year through 5 years | 1,239 | 2,777 |
Amortized cost, 5 years through 10 years | 30,423 | 14,862 |
Amortized cost, After 10 years | 268,871 | 209,331 |
Available-for-sale Securities, Amortized Cost Basis, Total | 302,704 | 228,688 |
Available for Sale - Fair Value | ||
Estimated fair value, 1 year or less | 2,174 | 1,738 |
Estimated fair value, 1 year through 5 years | 1,305 | 2,863 |
Estimated fair value, 5 years through 10 years | 31,218 | 15,444 |
Estimated fair value, After 10 years | 274,536 | 217,236 |
Available-for-sale Securities, Total | 309,233 | 237,281 |
State and municipal securities | ||
Available for Sale - Amortized Cost | ||
Amortized cost, 1 year or less | 986 | 509 |
Amortized cost, 1 year through 5 years | 1,292 | |
Amortized cost, 5 years through 10 years | 9,405 | 9,154 |
Amortized cost, After 10 years | 112,276 | 77,786 |
Available-for-sale Securities, Amortized Cost Basis, Total | 122,667 | 88,741 |
Available for Sale - Fair Value | ||
Estimated fair value, 1 year or less | 990 | 512 |
Estimated fair value, 1 year through 5 years | 1,298 | |
Estimated fair value, 5 years through 10 years | 9,914 | 9,540 |
Estimated fair value, After 10 years | 116,203 | 81,687 |
Available-for-sale Securities, Total | 127,107 | 93,037 |
U.S. Treasury securities | ||
Available for Sale - Amortized Cost | ||
Amortized cost, 5 years through 10 years | 11,882 | |
Available-for-sale Securities, Amortized Cost Basis, Total | 11,882 | |
Available for Sale - Fair Value | ||
Estimated fair value, 5 years through 10 years | 11,961 | |
Available-for-sale Securities, Total | 11,961 | |
Callable debentures | ||
Available for Sale - Amortized Cost | ||
Amortized cost, 5 years through 10 years | 3,000 | |
Available-for-sale Securities, Amortized Cost Basis, Total | 3,000 | |
Available for Sale - Fair Value | ||
Estimated fair value, 5 years through 10 years | 3,002 | |
Available-for-sale Securities, Total | 3,002 | |
Collateralized mortgage obligations | ||
Available for Sale - Amortized Cost | ||
Amortized cost, 5 years through 10 years | 4,559 | 4,910 |
Amortized cost, After 10 years | 30,181 | 30,175 |
Available-for-sale Securities, Amortized Cost Basis, Total | 34,740 | 35,085 |
Available for Sale - Fair Value | ||
Estimated fair value, 5 years through 10 years | 4,668 | 5,075 |
Estimated fair value, After 10 years | 29,921 | 30,327 |
Available-for-sale Securities, Total | 34,589 | 35,402 |
Mortgage-backed securities | ||
Available for Sale - Amortized Cost | ||
Amortized cost, 1 year or less | 2 | 33 |
Amortized cost, 1 year through 5 years | 1,239 | 1,485 |
Amortized cost, 5 years through 10 years | 1,577 | 798 |
Amortized cost, After 10 years | 126,414 | 101,370 |
Available-for-sale Securities, Amortized Cost Basis, Total | 129,232 | 103,686 |
Available for Sale - Fair Value | ||
Estimated fair value, 1 year or less | 2 | 33 |
Estimated fair value, 1 year through 5 years | 1,305 | 1,565 |
Estimated fair value, 5 years through 10 years | 1,673 | 829 |
Estimated fair value, After 10 years | 128,412 | 105,222 |
Available-for-sale Securities, Total | 131,392 | 107,649 |
Equity securities | ||
Available for Sale - Amortized Cost | ||
Amortized cost, 1 year or less | 1,183 | 1,176 |
Available-for-sale Securities, Amortized Cost Basis, Total | 1,183 | 1,176 |
Available for Sale - Fair Value | ||
Estimated fair value, 1 year or less | 1,182 | 1,193 |
Available-for-sale Securities, Total | $ 1,182 | $ 1,193 |
SECURITIES - Securities carryin
SECURITIES - Securities carrying amount (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021USD ($)security | Dec. 31, 2020USD ($)security | Jun. 30, 2020USD ($) | |
SECURITIES. | |||
Carrying amount of securities sold in the period | $ 0 | $ 0 | |
Carrying value of securities pledged | 27,800 | $ 27,300 | |
Impairment loss on securities | 0 | 0 | |
Accrued interest receivable for securities | $ 1,400 | $ 1,200 | |
Securities held in a gross unrealized loss position | security | 80 | 18 |
SECURITIES - Securities with un
SECURITIES - Securities with unrealized losses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Investment securities | ||
Fair Value - Less Than Twelve Months | $ 78,368 | $ 7,176 |
Gross Unrealized Losses - Less Than Twelve Months | (921) | (30) |
Fair Value - Twelve Months or More | 107 | |
Gross Unrealized Losses - Twelve Months or More | (1) | |
State and municipal securities | ||
Investment securities | ||
Fair Value - Less Than Twelve Months | 16,253 | 263 |
Gross Unrealized Losses - Less Than Twelve Months | (103) | |
Collateralized mortgage obligations | ||
Investment securities | ||
Fair Value - Less Than Twelve Months | 20,184 | 6,913 |
Gross Unrealized Losses - Less Than Twelve Months | (315) | $ (30) |
Fair Value - Twelve Months or More | 107 | |
Gross Unrealized Losses - Twelve Months or More | (1) | |
Mortgage-backed securities | ||
Investment securities | ||
Fair Value - Less Than Twelve Months | 40,748 | |
Gross Unrealized Losses - Less Than Twelve Months | (502) | |
Equity securities | ||
Investment securities | ||
Fair Value - Less Than Twelve Months | 1,183 | |
Gross Unrealized Losses - Less Than Twelve Months | $ (1) |
EQUITY INVESTMENTS - Equity Inv
EQUITY INVESTMENTS - Equity Investments (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Equity investments | ||
Equity investments, total | $ 16,793 | $ 18,652 |
Federal Reserve stock | ||
Equity investments | ||
Equity investments, total | $ 9,271 | 9,271 |
Par value (in dollars per share) | $ 100 | |
Federal Home Loan Bank Stock | ||
Equity investments | ||
Equity investments, total | $ 3,955 | 5,941 |
Par value (in dollars per share) | $ 100 | |
The Independent Bankers Financial Corporation stock | ||
Equity investments | ||
Equity investments, total | $ 141 | 141 |
Community Reinvestment Act investments | ||
Equity investments | ||
Equity investments, total | 3,426 | 3,299 |
Unfunded commitments | $ 4,200 | $ 4,400 |
LOANS - By portfolio segment (D
LOANS - By portfolio segment (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Loans | ||||
Total loans | $ 2,740,622 | $ 2,936,670 | ||
Percentage of loan | 100.00% | 100.00% | ||
Less allowance for credit losses for loans | $ (37,183) | $ (40,637) | $ (39,678) | $ (25,280) |
Less deferred loan fees and unearned discounts | (10,318) | (9,880) | ||
Less loans held for sale | (808) | (2,673) | ||
Loans, net | 2,692,313 | 2,883,480 | ||
Accrued interest receivable | 10,000 | 12,100 | ||
Commercial and industrial | ||||
Loans | ||||
Total loans | $ 658,733 | $ 742,957 | ||
Percentage of loan | 24.00% | 25.30% | ||
Less allowance for credit losses for loans | $ (12,260) | $ (13,035) | (12,108) | (7,671) |
Commercial real estate | ||||
Loans | ||||
Total loans | $ 1,060,968 | $ 1,041,998 | ||
Percentage of loan | 38.70% | 35.50% | ||
Less allowance for credit losses for loans | $ (13,260) | $ (13,798) | (12,424) | (7,975) |
Construction and development | ||||
Loans | ||||
Total loans | $ 426,007 | $ 522,705 | ||
Percentage of loan | 15.50% | 17.80% | ||
Less allowance for credit losses for loans | $ (4,453) | $ (6,089) | (7,050) | (4,446) |
1-4 family residential | ||||
Loans | ||||
Total loans | $ 211,328 | $ 239,872 | ||
Percentage of loan | 7.70% | 8.20% | ||
Less allowance for credit losses for loans | $ (2,172) | $ (2,578) | (3,173) | (2,257) |
Multifamily residential | ||||
Loans | ||||
Total loans | $ 265,252 | $ 258,346 | ||
Percentage of loan | 9.70% | 8.80% | ||
Less allowance for credit losses for loans | $ (2,382) | $ (2,513) | (2,880) | (1,699) |
Consumer | ||||
Loans | ||||
Total loans | $ 31,444 | $ 33,884 | ||
Percentage of loan | 1.10% | 1.10% | ||
Less allowance for credit losses for loans | $ (494) | $ (440) | (529) | (388) |
Agriculture | ||||
Loans | ||||
Total loans | $ 8,283 | $ 8,670 | ||
Percentage of loan | 0.40% | 0.30% | ||
Less allowance for credit losses for loans | $ (115) | $ (137) | (134) | (74) |
Other | ||||
Loans | ||||
Total loans | $ 78,607 | $ 88,238 | ||
Percentage of loan | 2.90% | 3.00% | ||
Less allowance for credit losses for loans | $ (2,047) | $ (2,047) | $ (1,380) | $ (770) |
LOANS - Loan participations pur
LOANS - Loan participations purchased and sold and Loans Guaranteed (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Loans | ||
Net gains recognized on sales of SBA loans | $ 223,000 | $ 41,000 |
SBA loans that were sold with servicing retained | 2,000,000 | 508,000 |
Construction and development | ||
Loans | ||
Participations Sold | $ 22,000 | |
Commercial and industrial | ||
Loans | ||
Participations Sold | 566,000 | |
Commercial real estate | ||
Loans | ||
Participations Purchased | $ 2,500,000 |
LOAN PERFORMANCE - Aging analys
LOAN PERFORMANCE - Aging analysis of past due loans, by loan class (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Aging analysis | |||
Total current loans | $ 2,740,366,000 | $ 2,930,758,000 | |
Total loans | 2,740,622,000 | 2,936,670,000 | |
Interest income that would have been earned under the original terms of the nonaccrual loans | 366,000 | $ 121,000 | |
30 to 59 days past due | |||
Aging analysis | |||
Total current loans | 39,000 | 1,463,000 | |
60 to 89 days past due | |||
Aging analysis | |||
Total current loans | 2,074,000 | ||
90 days or greater past due | |||
Aging analysis | |||
Total current loans | 217,000 | 2,375,000 | |
Total Past Due | |||
Aging analysis | |||
Total current loans | 256,000 | 5,912,000 | |
Commercial and industrial | |||
Aging analysis | |||
Total current loans | 658,733,000 | 738,582,000 | |
Total loans | 658,733,000 | 742,957,000 | |
Commercial and industrial | 30 to 59 days past due | |||
Aging analysis | |||
Total current loans | 51,000 | ||
Commercial and industrial | 60 to 89 days past due | |||
Aging analysis | |||
Total current loans | 2,055,000 | ||
Commercial and industrial | 90 days or greater past due | |||
Aging analysis | |||
Total current loans | 2,269,000 | ||
Commercial and industrial | Total Past Due | |||
Aging analysis | |||
Total current loans | 4,375,000 | ||
Commercial real estate | |||
Aging analysis | |||
Total current loans | 1,060,968,000 | 1,041,998,000 | |
Total loans | 1,060,968,000 | 1,041,998,000 | |
Construction and development | |||
Aging analysis | |||
Total current loans | 426,007,000 | 522,705,000 | |
Total loans | 426,007,000 | 522,705,000 | |
1-4 family residential | |||
Aging analysis | |||
Total current loans | 211,094,000 | 238,390,000 | |
Total loans | 211,328,000 | 239,872,000 | |
1-4 family residential | 30 to 59 days past due | |||
Aging analysis | |||
Total current loans | 17,000 | 1,357,000 | |
1-4 family residential | 60 to 89 days past due | |||
Aging analysis | |||
Total current loans | 19,000 | ||
1-4 family residential | 90 days or greater past due | |||
Aging analysis | |||
Total current loans | 217,000 | 106,000 | |
1-4 family residential | Total Past Due | |||
Aging analysis | |||
Total current loans | 234,000 | 1,482,000 | |
Multifamily residential | |||
Aging analysis | |||
Total current loans | 265,252,000 | 258,346,000 | |
Total loans | 265,252,000 | 258,346,000 | |
Consumer | |||
Aging analysis | |||
Total current loans | 31,422,000 | 33,879,000 | |
Total loans | 31,444,000 | 33,884,000 | |
Consumer | 30 to 59 days past due | |||
Aging analysis | |||
Total current loans | 22,000 | 5,000 | |
Consumer | Total Past Due | |||
Aging analysis | |||
Total current loans | 22,000 | 5,000 | |
Agriculture | |||
Aging analysis | |||
Total current loans | 8,283,000 | 8,620,000 | |
Total loans | 8,283,000 | 8,670,000 | |
Agriculture | 30 to 59 days past due | |||
Aging analysis | |||
Total current loans | 50,000 | ||
Agriculture | Total Past Due | |||
Aging analysis | |||
Total current loans | 50,000 | ||
Other | |||
Aging analysis | |||
Total loans | 78,607,000 | 88,238,000 | |
Other: | |||
Aging analysis | |||
Total current loans | 78,607,000 | 88,238,000 | |
Total loans | $ 78,607,000 | $ 88,238,000 |
LOAN PERFORMANCE - Nonaccrual l
LOAN PERFORMANCE - Nonaccrual loans, segregated by loan class (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Nonaccrual loans | ||
Total nonaccrual loans | $ 20,973 | $ 24,017 |
Commercial and industrial | ||
Nonaccrual loans | ||
Total nonaccrual loans | 10,038 | 12,588 |
Commercial real estate | ||
Nonaccrual loans | ||
Total nonaccrual loans | 10,572 | 10,665 |
Construction and development | ||
Nonaccrual loans | ||
Total nonaccrual loans | 238 | |
1-4 family residential | ||
Nonaccrual loans | ||
Total nonaccrual loans | $ 363 | $ 526 |
LOAN PERFORMANCE - Troubled deb
LOAN PERFORMANCE - Troubled debt restructurings granted (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | |
Restructured loans | ||
Number of loans | loan | 5 | 35 |
Premodification outstanding Recorded Investment | $ 6,010 | $ 27,039 |
Restructured Payments | ||
Restructured loans | ||
Postmodification recorded investment | $ 6,010 | 26,297 |
Extended Maturity, Restructured Payments and Adjusted Interest Rate | ||
Restructured loans | ||
Postmodification recorded investment | $ 764 | |
Commercial and industrial | ||
Restructured loans | ||
Number of loans | loan | 3 | 17 |
Premodification outstanding Recorded Investment | $ 3,256 | $ 3,131 |
Commercial and industrial | Restructured Payments | ||
Restructured loans | ||
Postmodification recorded investment | $ 3,256 | 2,899 |
Commercial and industrial | Extended Maturity, Restructured Payments and Adjusted Interest Rate | ||
Restructured loans | ||
Postmodification recorded investment | $ 232 | |
Commercial real estate | ||
Restructured loans | ||
Number of loans | loan | 1 | 8 |
Premodification outstanding Recorded Investment | $ 1,206 | $ 9,715 |
Commercial real estate | Restructured Payments | ||
Restructured loans | ||
Postmodification recorded investment | $ 1,206 | $ 9,715 |
1-4 family residential | ||
Restructured loans | ||
Number of loans | loan | 1 | 5 |
Premodification outstanding Recorded Investment | $ 1,548 | $ 1,629 |
1-4 family residential | Restructured Payments | ||
Restructured loans | ||
Postmodification recorded investment | $ 1,548 | $ 1,651 |
Construction and development | ||
Restructured loans | ||
Number of loans | loan | 5 | |
Premodification outstanding Recorded Investment | $ 12,564 | |
Construction and development | Restructured Payments | ||
Restructured loans | ||
Postmodification recorded investment | 12,032 | |
Construction and development | Extended Maturity, Restructured Payments and Adjusted Interest Rate | ||
Restructured loans | ||
Postmodification recorded investment | $ 532 |
LOAN PERFORMANCE - Troubled d_2
LOAN PERFORMANCE - Troubled debt restructurings with payment defaults (Details) - TDRs with payment defaults after restructuring $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | |
Restructured loans | ||
TDRs with payment defaults, Number of Loans | loan | 4 | 2 |
TDRs with payment defaults, Balance | $ | $ 10,614 | $ 506 |
Commercial and industrial | ||
Restructured loans | ||
TDRs with payment defaults, Number of Loans | loan | 3 | |
TDRs with payment defaults, Balance | $ | $ 5,892 | |
Commercial real estate | ||
Restructured loans | ||
TDRs with payment defaults, Number of Loans | loan | 1 | |
TDRs with payment defaults, Balance | $ | $ 4,722 | |
Construction and development | ||
Restructured loans | ||
TDRs with payment defaults, Number of Loans | loan | 2 | |
TDRs with payment defaults, Balance | $ | $ 506 |
LOAN PERFORMANCE - Outstanding
LOAN PERFORMANCE - Outstanding Troubled debt restructurings and other loans individually evaluated (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Restructured loans | ||
Accruing TDR | $ 31,789,000 | $ 32,880,000 |
Non-Accrual TDR | 18,196,000 | 19,173,000 |
Total TDR | 49,985,000 | 52,053,000 |
Other Non-Accrual | 2,777,000 | 4,844,000 |
Other Accruing | 836,000 | 746,000 |
Total Individually Evaluated | 53,598,000 | 57,643,000 |
Commercial and industrial | ||
Restructured loans | ||
Accruing TDR | 5,728,000 | 2,594,000 |
Non-Accrual TDR | 7,497,000 | 8,228,000 |
Total TDR | 13,225,000 | 10,822,000 |
Other Non-Accrual | 2,541,000 | 4,360,000 |
Other Accruing | 746,000 | 746,000 |
Total Individually Evaluated | 16,512,000 | 15,928,000 |
Commercial real estate | ||
Restructured loans | ||
Accruing TDR | 7,192,000 | 8,103,000 |
Non-Accrual TDR | 10,512,000 | 10,601,000 |
Total TDR | 17,704,000 | 18,704,000 |
Other Non-Accrual | 60,000 | 64,000 |
Total Individually Evaluated | 17,764,000 | 18,768,000 |
Construction and development | ||
Restructured loans | ||
Accruing TDR | 12,323,000 | 12,648,000 |
Non-Accrual TDR | 238,000 | |
Total TDR | 12,323,000 | 12,886,000 |
Total Individually Evaluated | 12,323,000 | 12,886,000 |
1-4 family residential | ||
Restructured loans | ||
Accruing TDR | 3,142,000 | 1,684,000 |
Non-Accrual TDR | 187,000 | 106,000 |
Total TDR | 3,329,000 | 1,790,000 |
Other Non-Accrual | 176,000 | 420,000 |
Total Individually Evaluated | 3,505,000 | 2,210,000 |
Consumer | ||
Restructured loans | ||
Other Accruing | 90,000 | |
Total Individually Evaluated | 90,000 | |
Other: | ||
Restructured loans | ||
Accruing TDR | 3,404,000 | 7,851,000 |
Total TDR | 3,404,000 | 7,851,000 |
Total Individually Evaluated | 3,404,000 | 7,851,000 |
Unfunded Commitment | ||
Restructured loans | ||
Commitment to fund on loans that were previously restructured | $ 4,800,000 | $ 593,000 |
ALLOWANCE FOR CREDIT LOSSES (De
ALLOWANCE FOR CREDIT LOSSES (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Allowance for credit losses for loans (as a percent) | 1.36 | 1.39 |
Minimum | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total factors (as a percent) | 0.90 | 0.92 |
Maximum | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total factors (as a percent) | 2.63 | 2.48 |
ALLOWANCE FOR CREDIT LOSSES - L
ALLOWANCE FOR CREDIT LOSSES - Loans by risk grades, loan class and vintage (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | $ 393,084 | |
2020 | 531,588 | $ 856,746 |
2019 | 458,001 | 512,418 |
2018 | 381,060 | 452,751 |
2017 | 181,105 | 231,935 |
2016 | 114,252 | |
Prior | 370,633 | 338,342 |
Revolving Loans | 405,142 | 403,288 |
Converted revolving loan | 20,009 | 26,938 |
Total Loans | 2,740,622 | 2,936,670 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 658,733 | 742,957 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 1,060,968 | 1,041,998 |
Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 426,007 | 522,705 |
1-4 family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 211,328 | 239,872 |
Multifamily residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 265,252 | 258,346 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 31,444 | 33,884 |
Agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 8,283 | 8,670 |
Other: | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 78,607 | 88,238 |
Loans by risk grades | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans | 2,740,622 | 2,936,670 |
Loans by risk grades | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 201,597 | |
2020 | 109,681 | 350,698 |
2019 | 73,689 | 83,764 |
2018 | 37,662 | 53,183 |
2017 | 10,769 | 13,176 |
2016 | 8,369 | |
Prior | 8,926 | 5,453 |
Revolving Loans | 204,544 | 218,310 |
Converted revolving loan | 11,865 | 10,004 |
Total Loans | 658,733 | 742,957 |
Loans by risk grades | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 81,102 | |
2020 | 237,473 | 262,072 |
2019 | 258,229 | 223,710 |
2018 | 208,433 | 206,229 |
2017 | 103,238 | 138,900 |
2016 | 69,527 | |
Prior | 117,679 | 87,828 |
Revolving Loans | 50,310 | 39,345 |
Converted revolving loan | 4,504 | 14,387 |
Total Loans | 1,060,968 | 1,041,998 |
Loans by risk grades | Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 67,028 | |
2020 | 124,652 | 165,894 |
2019 | 89,754 | 163,896 |
2018 | 40,463 | 100,841 |
2017 | 29,099 | 30,678 |
2016 | 6,707 | |
Prior | 3,929 | 889 |
Revolving Loans | 70,596 | 53,800 |
Converted revolving loan | 486 | |
Total Loans | 426,007 | 522,705 |
Loans by risk grades | 1-4 family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 14,385 | |
2020 | 24,372 | 28,550 |
2019 | 30,467 | 31,512 |
2018 | 39,504 | 49,772 |
2017 | 26,143 | 36,541 |
2016 | 26,018 | |
Prior | 68,954 | 58,337 |
Revolving Loans | 5,024 | 7,004 |
Converted revolving loan | 2,479 | 2,138 |
Total Loans | 211,328 | 239,872 |
Loans by risk grades | Multifamily residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 10,280 | |
2020 | 20,490 | 20,823 |
2019 | 2,370 | 3,119 |
2018 | 51,712 | 36,971 |
2017 | 10,236 | 10,655 |
2016 | 2,153 | |
Prior | 168,587 | 184,539 |
Revolving Loans | 1,577 | 86 |
Total Loans | 265,252 | 258,346 |
Loans by risk grades | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 4,915 | |
2020 | 5,441 | 8,937 |
2019 | 2,045 | 3,073 |
2018 | 1,325 | 1,855 |
2017 | 1,532 | 1,875 |
2016 | 146 | |
Prior | 68 | 23 |
Revolving Loans | 15,634 | 17,573 |
Converted revolving loan | 484 | 402 |
Total Loans | 31,444 | 33,884 |
Loans by risk grades | Agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 2,979 | |
2020 | 1,063 | 3,937 |
2019 | 54 | 105 |
2018 | 111 | 338 |
2017 | 72 | 86 |
2016 | 16 | |
Prior | 33 | 23 |
Revolving Loans | 3,780 | 4,158 |
Converted revolving loan | 191 | 7 |
Total Loans | 8,283 | 8,670 |
Loans by risk grades | Other: | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 10,798 | |
2020 | 8,416 | 15,835 |
2019 | 1,393 | 3,239 |
2018 | 1,850 | 3,562 |
2017 | 16 | 24 |
2016 | 1,316 | |
Prior | 2,457 | 1,250 |
Revolving Loans | 53,677 | 63,012 |
Total Loans | 78,607 | 88,238 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 393,084 | |
2020 | 524,903 | 852,986 |
2019 | 443,146 | 496,257 |
2018 | 356,563 | 427,345 |
2017 | 170,369 | 219,341 |
2016 | 110,309 | |
Prior | 362,079 | 331,092 |
Revolving Loans | 383,223 | 384,354 |
Converted revolving loan | 12,444 | 14,084 |
Total Loans | 2,645,811 | 2,835,768 |
Pass | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 201,597 | |
2020 | 108,681 | 349,697 |
2019 | 71,587 | 81,131 |
2018 | 30,328 | 46,973 |
2017 | 10,764 | 13,161 |
2016 | 8,349 | |
Prior | 8,500 | 3,432 |
Revolving Loans | 199,757 | 214,160 |
Converted revolving loan | 5,806 | 3,562 |
Total Loans | 637,020 | 720,465 |
Pass | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 81,102 | |
2020 | 234,312 | 262,072 |
2019 | 246,001 | 210,954 |
2018 | 193,682 | 196,630 |
2017 | 102,879 | 138,424 |
2016 | 68,468 | |
Prior | 113,556 | 84,453 |
Revolving Loans | 34,626 | 30,020 |
Converted revolving loan | 4,504 | 9,482 |
Total Loans | 1,010,662 | 1,000,503 |
Pass | Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 67,028 | |
2020 | 124,652 | 165,894 |
2019 | 89,754 | 163,658 |
2018 | 38,963 | 92,455 |
2017 | 18,892 | 20,146 |
2016 | 6,707 | |
Prior | 3,313 | 273 |
Revolving Loans | 70,596 | 53,800 |
Converted revolving loan | 486 | |
Total Loans | 413,684 | 502,933 |
Pass | 1-4 family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 14,385 | |
2020 | 22,825 | 27,002 |
2019 | 29,942 | 30,978 |
2018 | 38,592 | 48,561 |
2017 | 25,978 | 34,970 |
2016 | 24,386 | |
Prior | 66,800 | 57,122 |
Revolving Loans | 5,024 | 7,004 |
Converted revolving loan | 973 | 631 |
Total Loans | 204,519 | 230,654 |
Pass | Multifamily residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 10,280 | |
2020 | 20,490 | 20,823 |
2019 | 2,370 | 3,119 |
2018 | 51,712 | 36,971 |
2017 | 10,236 | 10,655 |
2016 | 2,153 | |
Prior | 168,587 | 184,539 |
Revolving Loans | 1,577 | 86 |
Total Loans | 265,252 | 258,346 |
Pass | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 4,915 | |
2020 | 5,441 | 8,937 |
2019 | 2,045 | 3,073 |
2018 | 1,325 | 1,855 |
2017 | 1,532 | 1,875 |
2016 | 146 | |
Prior | 68 | 23 |
Revolving Loans | 15,444 | 17,573 |
Converted revolving loan | 484 | 402 |
Total Loans | 31,254 | 33,884 |
Pass | Agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 2,979 | |
2020 | 1,063 | 3,937 |
2019 | 54 | 105 |
2018 | 111 | 338 |
2017 | 72 | 86 |
2016 | 16 | |
Prior | 12 | |
Revolving Loans | 3,736 | 4,108 |
Converted revolving loan | 191 | 7 |
Total Loans | 8,218 | 8,597 |
Pass | Other: | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2021 | 10,798 | |
2020 | 7,439 | 14,624 |
2019 | 1,393 | 3,239 |
2018 | 1,850 | 3,562 |
2017 | 16 | 24 |
2016 | 84 | |
Prior | 1,243 | 1,250 |
Revolving Loans | 52,463 | 57,603 |
Total Loans | 75,202 | 80,386 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 1,844 | 1,548 |
2019 | 879 | 1,224 |
2018 | 24 | 33 |
2016 | 1,617 | |
Prior | 3,439 | 1,390 |
Revolving Loans | 8,090 | 3,371 |
Converted revolving loan | 4,905 | |
Total Loans | 14,276 | 14,088 |
Special Mention | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2018 | 24 | 33 |
Revolving Loans | 3,256 | 3,371 |
Total Loans | 3,280 | 3,404 |
Special Mention | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 1,844 | |
2019 | 879 | 1,224 |
Prior | 1,915 | 1,390 |
Revolving Loans | 4,834 | |
Converted revolving loan | 4,905 | |
Total Loans | 9,472 | 7,519 |
Special Mention | 1-4 family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 1,548 | |
2016 | 1,617 | |
Prior | 1,524 | |
Total Loans | 1,524 | 3,165 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 4,841 | 2,212 |
2019 | 13,976 | 14,937 |
2018 | 24,473 | 25,373 |
2017 | 10,736 | 12,594 |
2016 | 2,326 | |
Prior | 5,115 | 5,860 |
Revolving Loans | 13,829 | 15,563 |
Converted revolving loan | 7,565 | 7,949 |
Total Loans | 80,535 | 86,814 |
Substandard | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 1,000 | 1,001 |
2019 | 2,102 | 2,633 |
2018 | 7,310 | 6,177 |
2017 | 5 | 15 |
2016 | 20 | |
Prior | 426 | 2,021 |
Revolving Loans | 1,531 | 779 |
Converted revolving loan | 6,059 | 6,442 |
Total Loans | 18,433 | 19,088 |
Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 1,317 | |
2019 | 11,349 | 11,532 |
2018 | 14,751 | 9,599 |
2017 | 359 | 476 |
2016 | 1,059 | |
Prior | 2,208 | 1,985 |
Revolving Loans | 10,850 | 9,325 |
Total Loans | 40,834 | 33,976 |
Substandard | Construction and development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2019 | 238 | |
2018 | 1,500 | 8,386 |
2017 | 10,207 | 10,532 |
Prior | 616 | 616 |
Total Loans | 12,323 | 19,772 |
Substandard | 1-4 family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 1,547 | |
2019 | 525 | 534 |
2018 | 912 | 1,211 |
2017 | 165 | 1,571 |
2016 | 15 | |
Prior | 630 | 1,215 |
Converted revolving loan | 1,506 | 1,507 |
Total Loans | 5,285 | 6,053 |
Substandard | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Revolving Loans | 190 | |
Total Loans | 190 | |
Substandard | Agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Prior | 21 | 23 |
Revolving Loans | 44 | 50 |
Total Loans | 65 | 73 |
Substandard | Other: | ||
Financing Receivable, Recorded Investment [Line Items] | ||
2020 | 977 | 1,211 |
2016 | 1,232 | |
Prior | 1,214 | |
Revolving Loans | 1,214 | 5,409 |
Total Loans | $ 3,405 | $ 7,852 |
ALLOWANCE FOR CREDIT LOSSES -_2
ALLOWANCE FOR CREDIT LOSSES - Loans by risk grades and loan class (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Amortized cost of loans by loan type | ||
Total loans | $ 2,740,622 | $ 2,936,670 |
Loans by risk grades | ||
Amortized cost of loans by loan type | ||
Total loans | 2,740,622 | 2,936,670 |
Pass | ||
Amortized cost of loans by loan type | ||
Total loans | 2,645,811 | 2,835,768 |
Special Mention | ||
Amortized cost of loans by loan type | ||
Total loans | 14,276 | 14,088 |
Substandard | ||
Amortized cost of loans by loan type | ||
Total loans | 80,535 | 86,814 |
Commercial and industrial | ||
Amortized cost of loans by loan type | ||
Total loans | 658,733 | 742,957 |
Commercial and industrial | Loans by risk grades | ||
Amortized cost of loans by loan type | ||
Total loans | 658,733 | 742,957 |
Commercial and industrial | Pass | ||
Amortized cost of loans by loan type | ||
Total loans | 637,020 | 720,465 |
Commercial and industrial | Special Mention | ||
Amortized cost of loans by loan type | ||
Total loans | 3,280 | 3,404 |
Commercial and industrial | Substandard | ||
Amortized cost of loans by loan type | ||
Total loans | 18,433 | 19,088 |
Commercial real estate | ||
Amortized cost of loans by loan type | ||
Total loans | 1,060,968 | 1,041,998 |
Commercial real estate | Loans by risk grades | ||
Amortized cost of loans by loan type | ||
Total loans | 1,060,968 | 1,041,998 |
Commercial real estate | Pass | ||
Amortized cost of loans by loan type | ||
Total loans | 1,010,662 | 1,000,503 |
Commercial real estate | Special Mention | ||
Amortized cost of loans by loan type | ||
Total loans | 9,472 | 7,519 |
Commercial real estate | Substandard | ||
Amortized cost of loans by loan type | ||
Total loans | 40,834 | 33,976 |
Construction and development | ||
Amortized cost of loans by loan type | ||
Total loans | 426,007 | 522,705 |
Construction and development | Loans by risk grades | ||
Amortized cost of loans by loan type | ||
Total loans | 426,007 | 522,705 |
Construction and development | Pass | ||
Amortized cost of loans by loan type | ||
Total loans | 413,684 | 502,933 |
Construction and development | Substandard | ||
Amortized cost of loans by loan type | ||
Total loans | 12,323 | 19,772 |
1-4 family residential | ||
Amortized cost of loans by loan type | ||
Total loans | 211,328 | 239,872 |
1-4 family residential | Loans by risk grades | ||
Amortized cost of loans by loan type | ||
Total loans | 211,328 | 239,872 |
1-4 family residential | Pass | ||
Amortized cost of loans by loan type | ||
Total loans | 204,519 | 230,654 |
1-4 family residential | Special Mention | ||
Amortized cost of loans by loan type | ||
Total loans | 1,524 | 3,165 |
1-4 family residential | Substandard | ||
Amortized cost of loans by loan type | ||
Total loans | 5,285 | 6,053 |
Multifamily residential | ||
Amortized cost of loans by loan type | ||
Total loans | 265,252 | 258,346 |
Multifamily residential | Loans by risk grades | ||
Amortized cost of loans by loan type | ||
Total loans | 265,252 | 258,346 |
Multifamily residential | Pass | ||
Amortized cost of loans by loan type | ||
Total loans | 265,252 | 258,346 |
Consumer | ||
Amortized cost of loans by loan type | ||
Total loans | 31,444 | 33,884 |
Consumer | Loans by risk grades | ||
Amortized cost of loans by loan type | ||
Total loans | 31,444 | 33,884 |
Consumer | Pass | ||
Amortized cost of loans by loan type | ||
Total loans | 31,254 | 33,884 |
Consumer | Substandard | ||
Amortized cost of loans by loan type | ||
Total loans | 190 | |
Agriculture | ||
Amortized cost of loans by loan type | ||
Total loans | 8,283 | 8,670 |
Agriculture | Loans by risk grades | ||
Amortized cost of loans by loan type | ||
Total loans | 8,283 | 8,670 |
Agriculture | Pass | ||
Amortized cost of loans by loan type | ||
Total loans | 8,218 | 8,597 |
Agriculture | Substandard | ||
Amortized cost of loans by loan type | ||
Total loans | 65 | 73 |
Other | ||
Amortized cost of loans by loan type | ||
Total loans | 78,607 | $ 88,238 |
Other | Loans by risk grades | ||
Amortized cost of loans by loan type | ||
Total loans | 78,607 | |
Other | Pass | ||
Amortized cost of loans by loan type | ||
Total loans | 75,202 | |
Other | Substandard | ||
Amortized cost of loans by loan type | ||
Total loans | $ 3,405 |
ALLOWANCE FOR CREDIT LOSSES -_3
ALLOWANCE FOR CREDIT LOSSES - Loans individually evaluated and collectively evaluated (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Loan Impairment Assessment | ||
Individually Evaluated Loans | $ 53,598,000 | $ 57,643,000 |
Collectively Evaluated Loans | 2,687,024,000 | 2,879,027,000 |
Total Loans | 2,740,622,000 | 2,936,670,000 |
Loans Collateral | 105,000 | |
Nonaccrual loans had no related ACL | 8,800,000 | 11,200,000 |
Nonaccrual loans ACL | 0 | 0 |
Commercial and industrial | ||
Loan Impairment Assessment | ||
Individually Evaluated Loans | 16,512,000 | 15,928,000 |
Collectively Evaluated Loans | 642,221,000 | 727,029,000 |
Total Loans | 658,733,000 | 742,957,000 |
Commercial real estate | ||
Loan Impairment Assessment | ||
Individually Evaluated Loans | 17,764,000 | 18,768,000 |
Collectively Evaluated Loans | 1,043,204,000 | 1,023,230,000 |
Total Loans | 1,060,968,000 | 1,041,998,000 |
Construction and development | ||
Loan Impairment Assessment | ||
Individually Evaluated Loans | 12,323,000 | 12,886,000 |
Collectively Evaluated Loans | 413,684,000 | 509,819,000 |
Total Loans | 426,007,000 | 522,705,000 |
1-4 family residential | ||
Loan Impairment Assessment | ||
Individually Evaluated Loans | 3,505,000 | 2,210,000 |
Collectively Evaluated Loans | 207,823,000 | 237,662,000 |
Total Loans | 211,328,000 | 239,872,000 |
Multifamily residential | ||
Loan Impairment Assessment | ||
Collectively Evaluated Loans | 265,252,000 | 258,346,000 |
Total Loans | 265,252,000 | 258,346,000 |
Consumer | ||
Loan Impairment Assessment | ||
Individually Evaluated Loans | 90,000 | |
Collectively Evaluated Loans | 31,354,000 | 33,884,000 |
Total Loans | 31,444,000 | 33,884,000 |
Agriculture | ||
Loan Impairment Assessment | ||
Collectively Evaluated Loans | 8,283,000 | 8,670,000 |
Total Loans | 8,283,000 | 8,670,000 |
Other | ||
Loan Impairment Assessment | ||
Individually Evaluated Loans | 3,404,000 | 7,851,000 |
Collectively Evaluated Loans | 75,203,000 | 80,387,000 |
Total Loans | $ 78,607,000 | $ 88,238,000 |
ALLOWANCE FOR CREDIT LOSSES - A
ALLOWANCE FOR CREDIT LOSSES - Activity in the total ACL for loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Loan losses segregated by loan class | ||||
Beginning balance | $ 40,637 | $ 25,280 | ||
Impact of CECL adoption | 874 | |||
Provision (recapture) for credit losses for loans | $ (4,190) | $ 8,537 | (3,904) | 13,276 |
Charge-off | (498) | (272) | ||
Recoveries | 948 | 520 | ||
Financing Receivable, Allowance for Credit Losses | 37,183 | 39,678 | 37,183 | 39,678 |
Net (Charge-off) Recovery | 450 | 248 | ||
Ending balance | 37,183 | 39,678 | 37,183 | 39,678 |
Specific reserve | ||||
Loan losses segregated by loan class | ||||
Financing Receivable, Allowance for Credit Losses | 5,681 | 2,871 | 5,681 | 2,871 |
Ending balance | 5,681 | 2,871 | 5,681 | 2,871 |
General reserve | ||||
Loan losses segregated by loan class | ||||
Financing Receivable, Allowance for Credit Losses | 31,502 | 36,807 | 31,502 | 36,807 |
Ending balance | 31,502 | 36,807 | 31,502 | 36,807 |
Commercial and industrial | ||||
Loan losses segregated by loan class | ||||
Beginning balance | 13,035 | 7,671 | ||
Impact of CECL adoption | 852 | |||
Provision (recapture) for credit losses for loans | (1,083) | 3,169 | ||
Charge-off | (495) | (79) | ||
Recoveries | 803 | 495 | ||
Financing Receivable, Allowance for Credit Losses | 12,260 | 12,108 | 12,260 | 12,108 |
Net (Charge-off) Recovery | 308 | 416 | ||
Ending balance | 12,260 | 12,108 | 12,260 | 12,108 |
Commercial and industrial | Specific reserve | ||||
Loan losses segregated by loan class | ||||
Financing Receivable, Allowance for Credit Losses | 4,803 | 2,403 | 4,803 | 2,403 |
Ending balance | 4,803 | 2,403 | 4,803 | 2,403 |
Commercial and industrial | General reserve | ||||
Loan losses segregated by loan class | ||||
Financing Receivable, Allowance for Credit Losses | 7,457 | 9,705 | 7,457 | 9,705 |
Ending balance | 7,457 | 9,705 | 7,457 | 9,705 |
Commercial real estate | ||||
Loan losses segregated by loan class | ||||
Beginning balance | 13,798 | 7,975 | ||
Impact of CECL adoption | (140) | |||
Provision (recapture) for credit losses for loans | (538) | 4,613 | ||
Charge-off | (24) | |||
Financing Receivable, Allowance for Credit Losses | 13,260 | 12,424 | 13,260 | 12,424 |
Net (Charge-off) Recovery | (24) | |||
Ending balance | 13,260 | 12,424 | 13,260 | 12,424 |
Commercial real estate | Specific reserve | ||||
Loan losses segregated by loan class | ||||
Financing Receivable, Allowance for Credit Losses | 252 | 252 | ||
Ending balance | 252 | 252 | ||
Commercial real estate | General reserve | ||||
Loan losses segregated by loan class | ||||
Financing Receivable, Allowance for Credit Losses | 13,008 | 12,424 | 13,008 | 12,424 |
Ending balance | 13,008 | 12,424 | 13,008 | 12,424 |
Construction and development | ||||
Loan losses segregated by loan class | ||||
Beginning balance | 6,089 | 4,446 | ||
Impact of CECL adoption | 100 | |||
Provision (recapture) for credit losses for loans | (1,636) | 2,504 | ||
Financing Receivable, Allowance for Credit Losses | 4,453 | 7,050 | 4,453 | 7,050 |
Ending balance | 4,453 | 7,050 | 4,453 | 7,050 |
Construction and development | General reserve | ||||
Loan losses segregated by loan class | ||||
Financing Receivable, Allowance for Credit Losses | 4,453 | 7,050 | 4,453 | 7,050 |
Ending balance | 4,453 | 7,050 | 4,453 | 7,050 |
1-4 family residential | ||||
Loan losses segregated by loan class | ||||
Beginning balance | 2,578 | 2,257 | ||
Impact of CECL adoption | (275) | |||
Provision (recapture) for credit losses for loans | (406) | 1,256 | ||
Charge-off | (66) | |||
Recoveries | 1 | |||
Financing Receivable, Allowance for Credit Losses | 2,172 | 3,173 | 2,172 | 3,173 |
Net (Charge-off) Recovery | (65) | |||
Ending balance | 2,172 | 3,173 | 2,172 | 3,173 |
1-4 family residential | General reserve | ||||
Loan losses segregated by loan class | ||||
Financing Receivable, Allowance for Credit Losses | 2,172 | 3,173 | 2,172 | 3,173 |
Ending balance | 2,172 | 3,173 | 2,172 | 3,173 |
Multifamily residential | ||||
Loan losses segregated by loan class | ||||
Beginning balance | 2,513 | 1,699 | ||
Impact of CECL adoption | 294 | |||
Provision (recapture) for credit losses for loans | (131) | 887 | ||
Financing Receivable, Allowance for Credit Losses | 2,382 | 2,880 | 2,382 | 2,880 |
Ending balance | 2,382 | 2,880 | 2,382 | 2,880 |
Multifamily residential | General reserve | ||||
Loan losses segregated by loan class | ||||
Financing Receivable, Allowance for Credit Losses | 2,382 | 2,880 | 2,382 | 2,880 |
Ending balance | 2,382 | 2,880 | 2,382 | 2,880 |
Consumer | ||||
Loan losses segregated by loan class | ||||
Beginning balance | 440 | 388 | ||
Impact of CECL adoption | (25) | |||
Provision (recapture) for credit losses for loans | (46) | 258 | ||
Charge-off | (3) | (103) | ||
Recoveries | 103 | 11 | ||
Financing Receivable, Allowance for Credit Losses | 494 | 529 | 494 | 529 |
Net (Charge-off) Recovery | 100 | (92) | ||
Ending balance | 494 | 529 | 494 | 529 |
Consumer | Specific reserve | ||||
Loan losses segregated by loan class | ||||
Financing Receivable, Allowance for Credit Losses | 90 | 90 | ||
Ending balance | 90 | 90 | ||
Consumer | General reserve | ||||
Loan losses segregated by loan class | ||||
Financing Receivable, Allowance for Credit Losses | 404 | 529 | 404 | 529 |
Ending balance | 404 | 529 | 404 | 529 |
Agriculture | ||||
Loan losses segregated by loan class | ||||
Beginning balance | 137 | 74 | ||
Impact of CECL adoption | 64 | |||
Provision (recapture) for credit losses for loans | (64) | (16) | ||
Recoveries | 42 | 12 | ||
Financing Receivable, Allowance for Credit Losses | 115 | 134 | 115 | 134 |
Net (Charge-off) Recovery | 42 | 12 | ||
Ending balance | 115 | 134 | 115 | 134 |
Agriculture | General reserve | ||||
Loan losses segregated by loan class | ||||
Financing Receivable, Allowance for Credit Losses | 115 | 134 | 115 | 134 |
Ending balance | 115 | 134 | 115 | 134 |
Other | ||||
Loan losses segregated by loan class | ||||
Beginning balance | 2,047 | 770 | ||
Impact of CECL adoption | 4 | |||
Provision (recapture) for credit losses for loans | 605 | |||
Recoveries | 1 | |||
Financing Receivable, Allowance for Credit Losses | 2,047 | 1,380 | 2,047 | 1,380 |
Net (Charge-off) Recovery | 1 | |||
Ending balance | 2,047 | 1,380 | 2,047 | 1,380 |
Other | Specific reserve | ||||
Loan losses segregated by loan class | ||||
Financing Receivable, Allowance for Credit Losses | 536 | 468 | 536 | 468 |
Ending balance | 536 | 468 | 536 | 468 |
Other | General reserve | ||||
Loan losses segregated by loan class | ||||
Financing Receivable, Allowance for Credit Losses | 1,511 | 912 | 1,511 | 912 |
Ending balance | 1,511 | 912 | 1,511 | 912 |
Unfunded Commitment | ||||
Loan losses segregated by loan class | ||||
Beginning balance | 4,177 | 378 | ||
Financing Receivable, Allowance for Credit Losses | 3,410 | 5,002 | 3,410 | 5,002 |
Ending balance | $ 3,410 | $ 5,002 | $ 3,410 | $ 5,002 |
ALLOWANCE FOR LOAN LOSSES - ACL
ALLOWANCE FOR LOAN LOSSES - ACL for loans by loan class (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Loan Category | ||||
Allowance for credit losses on loans | $ 37,183 | $ 40,637 | $ 39,678 | $ 25,280 |
Allowance for loan losses (as a percent) | 100.00% | 100.00% | ||
Loans excluding loans held for sale | $ 2,729,496 | $ 2,924,117 | ||
ACL for loans to loans excluding loans held for sale | 1.36% | 1.39% | ||
Commercial and industrial | ||||
Loan Category | ||||
Allowance for credit losses on loans | $ 12,260 | $ 13,035 | 12,108 | 7,671 |
Allowance for loan losses (as a percent) | 33.00% | 32.10% | ||
Commercial real estate | ||||
Loan Category | ||||
Allowance for credit losses on loans | $ 13,260 | $ 13,798 | 12,424 | 7,975 |
Allowance for loan losses (as a percent) | 35.70% | 34.00% | ||
Construction and development | ||||
Loan Category | ||||
Allowance for credit losses on loans | $ 4,453 | $ 6,089 | 7,050 | 4,446 |
Allowance for loan losses (as a percent) | 12.00% | 15.00% | ||
1-4 family residential | ||||
Loan Category | ||||
Allowance for credit losses on loans | $ 2,172 | $ 2,578 | 3,173 | 2,257 |
Allowance for loan losses (as a percent) | 5.80% | 6.30% | ||
Multifamily residential | ||||
Loan Category | ||||
Allowance for credit losses on loans | $ 2,382 | $ 2,513 | 2,880 | 1,699 |
Allowance for loan losses (as a percent) | 6.40% | 6.20% | ||
Consumer | ||||
Loan Category | ||||
Allowance for credit losses on loans | $ 494 | $ 440 | 529 | 388 |
Allowance for loan losses (as a percent) | 1.30% | 1.10% | ||
Agriculture | ||||
Loan Category | ||||
Allowance for credit losses on loans | $ 115 | $ 137 | $ 134 | $ 74 |
Allowance for loan losses (as a percent) | 0.30% | 0.30% | ||
Other: | ||||
Loan Category | ||||
Allowance for credit losses on loans | $ 2,047 | $ 2,047 | ||
Allowance for loan losses (as a percent) | 5.50% | 5.00% |
ALLOWANCE FOR CREDIT LOSSES - C
ALLOWANCE FOR CREDIT LOSSES - Charge-offs and recoveries by loan class and vintage (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | $ (498) | $ (272) |
Recovery | 948 | 520 |
Net (Charge-off) Recovery | 450 | 248 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (495) | (79) |
Recovery | 803 | 495 |
Net (Charge-off) Recovery | 308 | 416 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (3) | (103) |
Recovery | 103 | 11 |
Net (Charge-off) Recovery | 100 | (92) |
Agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recovery | 42 | 12 |
Net (Charge-off) Recovery | 42 | 12 |
1-4 family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (66) | |
Recovery | 1 | |
Net (Charge-off) Recovery | (65) | |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (24) | |
Net (Charge-off) Recovery | (24) | |
Other: | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recovery | 1 | |
Net (Charge-off) Recovery | 1 | |
2021 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recovery | 2 | |
Net (Charge-off) Recovery | 2 | |
2021 | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recovery | 2 | |
Net (Charge-off) Recovery | 2 | |
2020 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recovery | 10 | |
Net (Charge-off) Recovery | 10 | |
2020 | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recovery | 10 | |
Net (Charge-off) Recovery | 10 | |
2019 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (194) | (65) |
Recovery | 3 | 2 |
Net (Charge-off) Recovery | (191) | (63) |
2019 | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (191) | |
Recovery | 3 | 2 |
Net (Charge-off) Recovery | (188) | 2 |
2019 | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (3) | |
Net (Charge-off) Recovery | (3) | |
2019 | 1-4 family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (65) | |
Net (Charge-off) Recovery | (65) | |
2018 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (260) | (8) |
Recovery | 31 | 92 |
Net (Charge-off) Recovery | (229) | 84 |
2018 | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (260) | |
Recovery | 29 | 92 |
Net (Charge-off) Recovery | (231) | 92 |
2018 | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (8) | |
Recovery | 2 | |
Net (Charge-off) Recovery | 2 | (8) |
2017 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (131) | |
Recovery | 40 | 34 |
Net (Charge-off) Recovery | 40 | (97) |
2017 | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (36) | |
Recovery | 40 | 33 |
Net (Charge-off) Recovery | 40 | (3) |
2017 | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (95) | |
Net (Charge-off) Recovery | (95) | |
2017 | Other: | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recovery | 1 | |
Net (Charge-off) Recovery | 1 | |
2016 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (42) | |
Recovery | 31 | |
Net (Charge-off) Recovery | (11) | |
2016 | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (42) | |
Recovery | 19 | |
Net (Charge-off) Recovery | (23) | |
2016 | Agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recovery | 12 | |
Net (Charge-off) Recovery | 12 | |
Prior | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (25) | |
Recovery | 844 | 157 |
Net (Charge-off) Recovery | 844 | 132 |
Prior | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recovery | 703 | 155 |
Net (Charge-off) Recovery | 703 | 155 |
Prior | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recovery | 99 | 1 |
Net (Charge-off) Recovery | 99 | 1 |
Prior | Agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recovery | 42 | |
Net (Charge-off) Recovery | 42 | |
Prior | 1-4 family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (1) | |
Recovery | 1 | |
Prior | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (24) | |
Net (Charge-off) Recovery | (24) | |
Revolving Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (1) | |
Recovery | 194 | |
Net (Charge-off) Recovery | 193 | |
Revolving Loans | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (1) | |
Recovery | 194 | |
Net (Charge-off) Recovery | $ 193 | |
Converted Revolving Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (44) | |
Recovery | 28 | |
Net (Charge-off) Recovery | (16) | |
Converted Revolving Loans | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Charge-off | (44) | |
Recovery | 28 | |
Net (Charge-off) Recovery | $ (16) |
ALLOWANCE FOR CREDIT LOSSES -_4
ALLOWANCE FOR CREDIT LOSSES - Allowance for credit losses for unfunded commitments (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Financing Receivable, Recorded Investment [Line Items] | ||
Beginning balance | $ 40,637 | $ 25,280 |
Ending balance | 37,183 | 39,678 |
Unfunded Commitment | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Beginning balance | 4,177 | 378 |
Impact of implementation | 2,981 | |
Provision (recapture) | (767) | 1,643 |
Ending balance | $ 3,410 | $ 5,002 |
PREMISES AND EQUIPMENT - Compon
PREMISES AND EQUIPMENT - Components of premises and equipment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
PREMISES AND EQUIPMENT | |||||
Premises and equipment | $ 97,447,000 | $ 97,447,000 | $ 96,978,000 | ||
Less accumulated depreciation | (37,460,000) | (37,460,000) | (35,826,000) | ||
Premises and equipment, net | 59,987,000 | 59,987,000 | 61,152,000 | ||
Depreciation expense | 868,000 | $ 745,000 | 1,731,000 | $ 1,520,000 | |
Land | |||||
PREMISES AND EQUIPMENT | |||||
Premises and equipment | 15,484,000 | 15,484,000 | 15,484,000 | ||
Buildings and leasehold improvements | |||||
PREMISES AND EQUIPMENT | |||||
Premises and equipment | 64,120,000 | 64,120,000 | 64,113,000 | ||
Furniture and equipment | |||||
PREMISES AND EQUIPMENT | |||||
Premises and equipment | 17,014,000 | 17,014,000 | 16,777,000 | ||
Vehicles | |||||
PREMISES AND EQUIPMENT | |||||
Premises and equipment | 248,000 | 248,000 | 216,000 | ||
Construction in progress | |||||
PREMISES AND EQUIPMENT | |||||
Premises and equipment | $ 581,000 | $ 581,000 | $ 388,000 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Goodwill | $ 80,950,000 | $ 80,950,000 |
Changes in goodwill | 0 | 0 |
Impairment of goodwill | 0 | |
Impairment of intangible assets | 0 | |
Other Intangible Assets, net | ||
Gross Intangible Assets | 20,830,000 | 20,778,000 |
Accumulated Amortization | (16,984,000) | (16,607,000) |
Net Intangible Assets | $ 3,846,000 | $ 4,171,000 |
Core deposits | ||
Other Intangible Assets, net | ||
Finite-Lived Intangible Asset, Useful Life | 2 years 9 months 18 days | 3 years 2 months 12 days |
Gross Intangible Assets | $ 13,750,000 | $ 13,750,000 |
Accumulated Amortization | (13,433,000) | (13,305,000) |
Net Intangible Assets | $ 317,000 | $ 445,000 |
Customer relationships | ||
Other Intangible Assets, net | ||
Finite-Lived Intangible Asset, Useful Life | 7 years 6 months | 8 years |
Gross Intangible Assets | $ 6,629,000 | $ 6,629,000 |
Accumulated Amortization | (3,314,000) | (3,093,000) |
Net Intangible Assets | $ 3,315,000 | $ 3,536,000 |
Servicing assets | ||
Other Intangible Assets, net | ||
Finite-Lived Intangible Asset, Useful Life | 11 years 4 months 24 days | 10 years 4 months 24 days |
Gross Intangible Assets | $ 451,000 | $ 399,000 |
Accumulated Amortization | (237,000) | (209,000) |
Net Intangible Assets | $ 214,000 | $ 190,000 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Servicing Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Servicing Assets | |||
Balance at beginning of year | $ 190 | $ 189 | |
Increase from loan sales | 53 | 9 | |
Decrease from serviced loans paid off or foreclosed | (1) | ||
Amortization | (28) | (55) | |
Balance at end of period | 214 | $ 143 | |
Estimated future amortization for intangible assets | |||
Net Intangible Assets | $ 3,846 | $ 4,171 |
BANK OWNED LIFE INSURANCE (Deta
BANK OWNED LIFE INSURANCE (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
BANK OWNED LIFE INSURANCE. | ||
Balance at beginning of year | $ 72,338 | $ 71,881 |
Net change in cash surrender value | 780 | 828 |
Balance at end of year | $ 73,118 | $ 72,709 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
DEPOSITS | ||
Interest-bearing demand accounts | $ 375,543 | $ 380,175 |
Money market accounts | 1,101,091 | 1,039,617 |
Savings accounts | 115,823 | 108,167 |
Certificates and other time deposits, $100,000 or greater | 142,343 | 152,592 |
Certificates and other time deposits, less than $100,000 | 125,202 | 144,818 |
Total interest-bearing deposits | 1,860,002 | 1,825,369 |
Noninterest-bearing deposits | 1,556,784 | 1,476,425 |
Total deposits | $ 3,416,786 | $ 3,301,794 |
DEPOSITS - Schedule of maturiti
DEPOSITS - Schedule of maturities of time deposits (Details) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
Deposits from public entities | $ 34,500,000 | $ 29,300,000 |
Brokered deposits | 69,900,000 | 88,000,000 |
Overdrafts reclassified to loans | 293,000 | 336,000 |
Accrued interest payable for deposits | $ 186,000 | $ 324,000 |
Major concentrations of deposits from any single or related groups of depositors | 0 | 0 |
Certificates of deposits or other time deposits were uninsured | $ 72,100,000 |
LINES OF CREDIT (Details)
LINES OF CREDIT (Details) | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
LINES OF CREDIT | |||
Capital to risk based assets ratio | 17.72 | 16.71 | |
Outstanding borrowings | $ 0 | ||
Letter of credit | $ 10,800,000 | ||
Average outstanding balance, FHLB advances | $ 50,000,000 | $ 60,400,000 | |
Weighted-average interest rate , FHLB advances | 1.78% | 1.54% | |
Line of Credit | |||
LINES OF CREDIT | |||
Revolving line of credit available | $ 30,000,000 | ||
Revolving line of credit draw period | 24 months | ||
Line of credit payment terms | payable quarterly over 24 months beginning December 13, 2019, and thereafter, quarterly principal and interest payments are required over a term of 60 months | ||
Debt term | 60 months | ||
Line of Credit | Minimum | |||
LINES OF CREDIT | |||
Tangible capital | $ 300,000,000 | ||
Free cash flow coverage ratio | 1 | ||
Capital to risk based assets ratio | 12 | ||
Line of Credit | Maximum | |||
LINES OF CREDIT | |||
Free cash flow coverage ratio | 1.25 | ||
Capital to risk based assets ratio | 15 | ||
Line of Credit | FHLB advances | |||
LINES OF CREDIT | |||
Outstanding borrowings | $ 50,000,000 | 50,000,000 | |
Total borrowing capacity available | 1,100,000,000 | 1,100,000,000 | |
Net capacity available | $ 1,100,000,000 | $ 1,000,000,000 |
LINES OF CREDIT - Maturity and
LINES OF CREDIT - Maturity and Federal Funds Lines of Credit (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
FHLB advances Maturity | ||
2021 | $ 0 | |
2022 | 10,000,000 | |
2023 | 20,000,000 | |
2024 | 20,000,000 | |
2025 | 0 | |
Thereafter | 0 | |
Total | 50,000,000 | |
Outstanding borrowings | 0 | |
Line of Credit | ||
FHLB advances Maturity | ||
Revolving line of credit available | 30,000,000 | |
FHLB advances | Line of Credit | ||
FHLB advances Maturity | ||
Outstanding borrowings | 50,000,000 | $ 50,000,000 |
Federal funds line of credit | ||
FHLB advances Maturity | ||
Revolving line of credit available | 65,000,000 | 65,000,000 |
Outstanding borrowings | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
RELATED PARTY TRANSACTIONS | ||
Loans to related parties | $ 149.2 | $ 167.6 |
Deemed nonaccrual, past due, restructured or classified as potential problem loans | 0 | 0 |
Unfunded loan commitments to related parties | 44.8 | 47.3 |
Related party deposits | $ 219.5 | $ 210.1 |
FAIR VALUE DISCLOSURES - Financ
FAIR VALUE DISCLOSURES - Financial assets and financial liabilities measured at fair value on a recurring basis (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Financial Liabilities | ||
Transfers from level 1 and level 2 | $ 0 | $ 0 |
Transfers from level 2 and level 1 | 0 | 0 |
Transfers from level 1 and level 2 | 0 | 0 |
Transfers from level 2 and level 1 | 0 | 0 |
Transfers into level 3 | 0 | 0 |
Transfers from level 3 | 0 | 0 |
Recurring basis | ||
Financial Assets | ||
Total financial assets | 314,314,000 | 245,939,000 |
Financial Liabilities | ||
Total financial liabilities | 5,064,000 | 8,618,000 |
Level 1 Inputs | Recurring basis | ||
Financial Assets | ||
Equity securities | 1,182,000 | 1,193,000 |
Level 1 Inputs | Recurring basis | U.S. Treasury securities | ||
Financial Assets | ||
Debt securities available for sale | 11,961,000 | |
Level 2 Inputs | Recurring basis | ||
Financial Assets | ||
Interest rate swaps assets | 5,064,000 | 8,618,000 |
Financial Liabilities | ||
Interest rate swaps liabilities | 5,064,000 | 8,618,000 |
Level 2 Inputs | Recurring basis | State and municipal securities | ||
Financial Assets | ||
Debt securities available for sale | 127,107,000 | 93,037,000 |
Level 2 Inputs | Recurring basis | Callable debentures | ||
Financial Assets | ||
Debt securities available for sale | 3,002,000 | |
Level 2 Inputs | Recurring basis | Collateralized mortgage obligations | ||
Financial Assets | ||
Debt securities available for sale | 34,589,000 | 35,402,000 |
Level 2 Inputs | Recurring basis | Mortgage-backed securities | ||
Financial Assets | ||
Debt securities available for sale | 131,392,000 | 107,649,000 |
Level 3 Inputs | Recurring basis | ||
Financial Assets | ||
Credit risk participation agreement | $ 17,000 | $ 40,000 |
FAIR VALUE DISCLOSURES - Certai
FAIR VALUE DISCLOSURES - Certain individually evaluated loans on a non recurring basis (Details) - Non-recurring basis - Level 3 Inputs - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Loan Impairment Assessment | ||
Recorded Investment | $ 17,845 | $ 17,468 |
Specific ACL | 5,681 | 5,532 |
Net | 12,164 | 11,936 |
Commercial and industrial | ||
Loan Impairment Assessment | ||
Recorded Investment | 9,860 | 10,509 |
Specific ACL | 4,803 | 5,004 |
Net | 5,057 | 5,505 |
Commercial real estate | ||
Loan Impairment Assessment | ||
Recorded Investment | 5,705 | 5,727 |
Specific ACL | 252 | 323 |
Net | 5,453 | 5,404 |
Consumer: | ||
Loan Impairment Assessment | ||
Recorded Investment | 90 | |
Specific ACL | 90 | |
Other: | ||
Loan Impairment Assessment | ||
Recorded Investment | 2,190 | 1,232 |
Specific ACL | 536 | 205 |
Net | $ 1,654 | $ 1,027 |
FAIR VALUE DISCLOSURES - Non Fi
FAIR VALUE DISCLOSURES - Non Financial Assets and Non Financial Liabilities (Details) - Level 2 and 3 inputs - Non-recurring basis - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Write-downs of foreclosed assets for fair value remeasurement subsequent to initial foreclosure | $ 0 | $ 0 |
Foreclosed assets | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Fair m
FAIR VALUE DISCLOSURES - Fair market values of all financial instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financial Assets: | ||
Accrued interest receivable | $ 10,000 | $ 12,100 |
Other investments | 16,793 | 18,652 |
Financial Liabilities: | ||
Noninterest-bearing deposits | 1,556,784 | 1,476,425 |
Interest-bearing deposits | 1,860,002 | 1,825,369 |
Federal Home Loan Bank advances | 50,000 | 50,000 |
Fair Value | ||
Financial Assets: | ||
Total financial assets | 3,613,493 | 3,562,391 |
Financial Liabilities: | ||
Total financial liabilities | 3,504,696 | 3,423,107 |
Carrying Amount | ||
Financial Assets: | ||
Total financial assets | 3,583,164 | 3,528,690 |
Financial Liabilities: | ||
Total financial liabilities | 3,467,046 | 3,352,192 |
Level 1 Inputs | Fair Value | ||
Financial Assets: | ||
Cash and due from banks | 788,409 | 538,007 |
Financial Liabilities: | ||
Noninterest-bearing deposits | 1,556,784 | 1,476,425 |
Level 1 Inputs | Carrying Amount | ||
Financial Assets: | ||
Cash and due from banks | 788,409 | 538,007 |
Financial Liabilities: | ||
Noninterest-bearing deposits | 1,556,784 | 1,476,425 |
Level 2 Inputs | Fair Value | ||
Financial Assets: | ||
Bank-owned life insurance | 73,118 | 72,338 |
Accrued interest receivable | 11,509 | 13,350 |
Servicing asset | 214 | 190 |
Financial Liabilities: | ||
Interest-bearing deposits | 1,896,430 | 1,894,558 |
Federal Home Loan Bank advances | 51,222 | 51,726 |
Accrued interest payable | 260 | 398 |
Level 2 Inputs | Carrying Amount | ||
Financial Assets: | ||
Bank-owned life insurance | 73,118 | 72,338 |
Accrued interest receivable | 11,509 | 13,350 |
Servicing asset | 214 | 190 |
Financial Liabilities: | ||
Interest-bearing deposits | 1,860,002 | 1,825,369 |
Federal Home Loan Bank advances | 50,000 | 50,000 |
Accrued interest payable | 260 | 398 |
Level 3 Inputs | Fair Value | ||
Financial Assets: | ||
Loans, including held for sale, net | 2,723,450 | 2,919,854 |
Other investments | 16,793 | 18,652 |
Level 3 Inputs | Carrying Amount | ||
Financial Assets: | ||
Loans, including held for sale, net | 2,693,121 | 2,886,153 |
Other investments | $ 16,793 | $ 18,652 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)DerivativeInstrument | Dec. 31, 2020USD ($)DerivativeInstrument | |
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Deterioration in the customer's credit worthiness | $ 0 | $ 0 |
Not Designated as Hedging Instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Notional Amount | 295,951,000 | 307,066,000 |
Fair Value | $ 17,000 | $ 40,000 |
Not Designated as Hedging Instruments | Interest rate swaps with customers | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Number of derivative instruments | DerivativeInstrument | 22 | 23 |
Not Designated as Hedging Instruments | Other Assets. | Credit risk participation agreement with financial institution | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Notional amount asset | $ 14,084,000 | |
Fair value asset | $ 40,000 | |
Weighted Average Maturity | 8 years 9 months | |
LIBOR | Other Assets. | Interest rate swaps with customers | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Weighted Average Maturity | 4 years 5 months 1 day | 6 years 1 month 20 days |
LIBOR | Other Assets. | Interest rate swaps with financial institutions | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Weighted Average Maturity | 8 years 9 months | |
LIBOR | Other Assets. | Credit risk participation agreement with financial institution | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Weighted Average Maturity | 9 years 2 months 26 days | |
LIBOR | Other liabilities. | Interest rate swaps with customers | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Weighted Average Maturity | 8 years 9 months | |
LIBOR | Other liabilities. | Interest rate swaps with financial institutions | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Weighted Average Maturity | 4 years 5 months 1 day | 6 years 1 month 20 days |
LIBOR | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Notional amount asset | $ 99,006,000 | $ 141,241,000 |
Fair value asset | 4,453,000 | $ 8,146,000 |
LIBOR | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with financial institutions | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Notional amount asset | 36,862,000 | |
Fair value asset | $ 321,000 | |
Fixed rate | 3.50% | |
Floating rate | 2.50% | |
LIBOR | Not Designated as Hedging Instruments | Other Assets. | Credit risk participation agreement with financial institution | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Notional amount asset | $ 13,823,000 | |
Fair value asset | $ 17,000 | |
Fixed rate | 3.50% | 3.50% |
Floating rate | 2.50% | 2.50% |
LIBOR | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with customers | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Notional amount liability | $ 36,862,000 | |
Fair value liability | $ (321,000) | |
Fixed rate | 3.50% | |
Floating rate | 2.50% | |
LIBOR | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Notional amount liability | $ 99,006,000 | $ 141,241,000 |
Fair value liability | $ (4,453,000) | $ (8,146,000) |
U.S. Prime | Other Assets. | Interest rate swaps with customers | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Weighted Average Maturity | 6 years 5 months 15 days | 6 years 11 months 15 days |
U.S. Prime | Other liabilities. | Interest rate swaps with financial institutions | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Weighted Average Maturity | 6 years 5 months 15 days | 6 years 11 months 15 days |
U.S. Prime | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Notional amount asset | $ 5,196,000 | $ 5,250,000 |
Fair value asset | $ 290,000 | $ 472,000 |
Fixed rate | 4.99% | 4.99% |
U.S. Prime | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Notional amount liability | $ 5,196,000 | $ 5,250,000 |
Fair value liability | $ (290,000) | $ (472,000) |
Fixed rate | 4.99% | 4.99% |
Minimum | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Fixed rate | 3.25% | 3.25% |
Minimum | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Fixed rate | 3.25% | 3.25% |
Minimum | LIBOR | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Floating rate | 2.50% | 2.50% |
Minimum | LIBOR | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Floating rate | 2.50% | 2.50% |
Maximum | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Fixed rate | 5.89% | 5.89% |
Maximum | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Fixed rate | 5.89% | 5.89% |
Maximum | LIBOR | Not Designated as Hedging Instruments | Other Assets. | Interest rate swaps with customers | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Floating rate | 3.00% | 3.00% |
Maximum | LIBOR | Not Designated as Hedging Instruments | Other liabilities. | Interest rate swaps with financial institutions | ||
Derivative Instruments and Hedging Activities Disclosures [Table] | ||
Floating rate | 3.00% | 3.00% |
OPERATING LEASES - Lease Costs
OPERATING LEASES - Lease Costs (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Lease costs | ||
Operating lease cost | $ 970 | $ 993 |
Short-term lease cost | 9 | 28 |
Sublease income | (314) | (63) |
Total lease cost | $ 665 | $ 958 |
OPERATING LEASES - Other Inform
OPERATING LEASES - Other Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Other information | ||
Amortization of lease right-to-use asset | $ 771 | $ 743 |
Accretion of lease liabilities | 199 | 249 |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 1,055 | $ 1,143 |
Weighted-average discount rate | 2.64% | 2.70% |
Weighted-average remaining lease term in years | 10 years 8 months 12 days | 11 years 3 months 18 days |
OPERATING LEASES - Maturity of
OPERATING LEASES - Maturity of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2021 | $ 2,021 | |
2022 | 2,241 | |
2023 | 2,138 | |
2024 | 1,798 | |
2025 | 1,786 | |
Thereafter | 8,476 | |
Total undiscounted lease liability | 18,460 | |
Less: Discount on cash flows | (2,870) | |
Total operating lease liability | $ 15,590 | $ 16,447 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES AND FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||
Commitments to extend credit, variable interest rate | $ 625,824 | $ 659,385 |
Commitments to extend credit, fixed interest rate | 66,757 | 80,346 |
Total commitments | 692,581 | 739,731 |
Standby letters of credit | ||
Loss Contingencies [Line Items] | ||
Total commitments | $ 23,022 | $ 26,078 |
EMPLOYEE BENEFIT PLANS AND DE_2
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Oct. 31, 2017 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS | ||||
Term of service for 401K participation | 3 months | |||
Company's contributions to the 401K plan | $ 1,200,000 | $ 1,200,000 | ||
Executive Deferred Compensation Arrangements | ||||
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS | ||||
Employers contribution of incentive bonus (as a percent) | 25.00% | |||
Deferred plan liability | $ 1,700,000 | $ 2,000,000 | ||
2008 Salary Continuation Agreement | ||||
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS | ||||
Deferred plan liability | 200,000 | 246,000 | ||
Annual compensation payment amount | $ 100,000 | |||
Contractual term | 10 years | |||
Commencement age | 65 years | |||
2017 Salary Continuation Agreement 2017 | ||||
EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION ARRANGEMENTS | ||||
Deferred plan liability | $ 778,000 | $ 640,000 | ||
Annual compensation payment amount | $ 200,000 | |||
Contractual term | 10 years | |||
Commencement age | 70 years |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - shares | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Non-performance based restricted stock | |||
STOCK-BASED COMPENSATION | |||
Options issued | 18,658 | 12,853 | |
Non-performance based restricted stock | Minimum | |||
STOCK-BASED COMPENSATION | |||
Vesting period | 2 years | ||
Non-performance based restricted stock | Maximum | |||
STOCK-BASED COMPENSATION | |||
Vesting period | 5 years | ||
Performance-based restricted stock | |||
STOCK-BASED COMPENSATION | |||
Performance conditions goals achieved within period, years | 5 years | ||
2006 Plan | |||
STOCK-BASED COMPENSATION | |||
Number of options outstanding | 45,720 | 0 | |
2014 Plan | |||
STOCK-BASED COMPENSATION | |||
Number of options authorized | 1,127,200 | ||
Options issued | 0 | ||
Option expiration term | 10 years | ||
Options available for future grant | 963,200 | ||
2014 Plan | Minimum | |||
STOCK-BASED COMPENSATION | |||
Vesting period | 1 year | ||
2014 Plan | Maximum | |||
STOCK-BASED COMPENSATION | |||
Vesting period | 5 years | ||
2014 Plan | Granted after May 20, 2024 | |||
STOCK-BASED COMPENSATION | |||
Number of options granted | 0 | ||
2017 Plan | |||
STOCK-BASED COMPENSATION | |||
Number of options authorized | 600,000 | ||
Options available for future grant | 279,156 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock option activity (Details) - Stock options - $ / shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Number of Shares Underlying Options | ||
Outstanding at beginning of period | 201,720 | 213,078 |
Exercised | (2,524) | |
Outstanding at end of period | 201,720 | 210,554 |
Weighted Average Exercise Price | ||
Outstanding at beginning of period | $ 17.22 | $ 16.92 |
Exercised | 12.90 | |
Outstanding at end of period | $ 17.22 | $ 16.97 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of stock options (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
STOCK-BASED COMPENSATION | ||||
Number of shares underlying options exercisable | 179,721 | |||
Number of shares underlying options unvested | 21,999 | |||
Number of shares underlying options outstanding | 201,720 | |||
Weighted-average exercise price per share exercisable | $ 16.76 | |||
Weighted-average exercise price per share unvested | 21 | |||
Weighted-average exercise price per share outstanding | $ 17.22 | $ 17.22 | $ 16.97 | $ 16.92 |
Aggregate intrinsic value exercisable | $ 1,896 | |||
Aggregate intrinsic value unvested | 139 | |||
Aggregate intrinsic value outstanding | $ 2,035 | |||
Weighted-average remaining contractual term exercisable (years) | 3 years 10 months 24 days | |||
Weighted-average remaining contractual term unvested (years) | 6 years | |||
Weighted-average remaining contractual term outstanding (years) | 4 years 1 month 6 days |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted stock activity (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Performance-based restricted stock | ||
Number of Shares | ||
Outstanding, beginning of period | 2,250 | 18,000 |
Forfeited | (750) | |
Outstanding, end of period | 2,250 | 17,250 |
Weighted Average Grant Date Fair Value | ||
Outstanding, beginning of period | $ 34.40 | $ 34.46 |
Forfeited | 31.79 | |
Outstanding, end of period | $ 34.40 | $ 34.57 |
Non-performance based restricted stock | ||
Number of Shares | ||
Outstanding, beginning of period | 129,667 | 161,443 |
Granted | 33,285 | 40,594 |
Vested | (21,749) | (14,550) |
Forfeited | (493) | (8,656) |
Outstanding, end of period | 140,710 | 178,831 |
Weighted Average Grant Date Fair Value | ||
Outstanding, beginning of period | $ 28.22 | $ 28.20 |
Granted | 26.32 | 28.55 |
Vested | 30.71 | 31.71 |
Forfeited | 28.80 | 27.22 |
Outstanding, end of period | $ 27.39 | $ 28.04 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of restricted stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Non-performance based restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares underlying restricted stock | 140,710 | 129,667 | 178,831 | 161,443 |
Weighted-average grant date fair value per share | $ 27.39 | $ 28.22 | $ 28.04 | $ 28.20 |
Aggregate fair value (in thousands) | $ 3,843 | |||
Weighted-average remaining vesting period (years) | 1 year 8 months 12 days | |||
Performance-based restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares underlying restricted stock | 2,250 | 2,250 | 17,250 | 18,000 |
Weighted-average grant date fair value per share | $ 34.40 | $ 34.40 | $ 34.57 | $ 34.46 |
Aggregate fair value (in thousands) | $ 61 | |||
Weighted-average remaining vesting period (years) | 2 years 3 months 18 days |
STOCK-BASED COMPENSATION - Su_3
STOCK-BASED COMPENSATION - Summary of Stock options exercised, restricted stock vested, shares withheld and shares issued (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Number of Shares | ||||
Stock compensation expense | $ 574,000 | $ 552,000 | $ 1,100,000 | $ 1,100,000 |
Unrecognized compensation expense | $ 2,800,000 | $ 2,800,000 | ||
Weighted average period | 1 year 7 months 6 days | |||
Stock options | ||||
Number of Shares | ||||
Stock Options, Exercised/Vested | 2,524 | |||
Stock Options, Shares Issued | 2,524 | |||
Non-performance based restricted stock | ||||
Number of Shares | ||||
Restricted Stock, Exercised/Vested | 21,749 | 14,550 | ||
Restricted Stock, Shares withheld | (3,091) | (1,697) | ||
Stock Options, Shares Issued | 18,658 | 12,853 |
REGULATORY MATTERS - Regulatory
REGULATORY MATTERS - Regulatory Capital (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Regulatory matters | ||
Capital conversion buffer (as a percent) | 2.50% | |
Common Equity Tier I to RiskWeighted Assets | ||
Dividend restrictions term | 2 years | |
Actual amount | $ 467,035 | $ 455,391 |
Common Equity Tier One Capital Ratio | 16.46 | 15.45 |
Minimum Capital Required for Capital Adequacy Purposes (ratio) | 4.50% | |
Minimum Capital Required Basel III (amount) | $ 198,581 | $ 206,296 |
Minimum Capital RequiredBasel III (ratio) | 7 | 7 |
Tier I Capital to RiskWeighted Assets | ||
Actual amount | $ 467,035 | $ 455,391 |
Actual ratio | 16.46 | 15.45 |
Minimum Capital Required for Capital Adequacy Purposes (ratio) | 6.00% | |
Minimum Capital RequiredBasel III Fully Phasedin (amount) | $ 241,134 | $ 250,502 |
Minimum Capital RequiredBasel III Fully Phasedin (ratio) | 8.50 | 8.50 |
Required to be Considered Well Capitalized, ratio | 8 | |
Total Capital to RiskWeighted Assets | ||
Actual amount | $ 502,559 | $ 492,328 |
Actual ratio | 17.72 | 16.71 |
Minimum Capital Required for Capital Adequacy Purposes (ratio) | 8.00% | |
Minimum Capital RequiredBasel III Fully Phasedin (amount) | $ 297,872 | $ 309,444 |
Minimum Capital RequiredBasel III Fully Phasedin (ratio) | 10.50 | 10.50 |
Leverage Ratio | ||
Actual amount | $ 467,035 | $ 455,391 |
Actual ratio | 11.63 | 12 |
Minimum Capital Required for Capital Adequacy Purposes (ratio) | 4.00% | |
Minimum Capital RequiredBasel III Fully Phasedin (amount) | $ 160,747 | $ 151,797 |
Minimum Capital RequiredBasel III Fully Phasedin (ratio) | 4 | 4 |
Bank Only | ||
Common Equity Tier I to RiskWeighted Assets | ||
Actual amount | $ 438,337 | $ 421,952 |
Common Equity Tier One Capital Ratio | 15.45 | 14.32 |
Minimum Capital Required Basel III (amount) | $ 198,565 | $ 206,281 |
Minimum Capital RequiredBasel III (ratio) | 7 | 7 |
Required to be Considered Well Capitalized, amount | $ 184,382 | $ 191,547 |
Required to be Considered Well Capitalized, ratio | 6.50 | 6.50 |
Tier I Capital to RiskWeighted Assets | ||
Actual amount | $ 438,337 | $ 421,952 |
Actual ratio | 15.45 | 14.32 |
Minimum Capital RequiredBasel III Fully Phasedin (amount) | $ 241,114 | $ 250,484 |
Minimum Capital RequiredBasel III Fully Phasedin (ratio) | 8.50 | 8.50 |
Required to be Considered Well Capitalized, amount | $ 226,931 | $ 235,750 |
Required to be Considered Well Capitalized, ratio | 8 | 8 |
Total Capital to RiskWeighted Assets | ||
Actual amount | $ 473,858 | $ 458,886 |
Actual ratio | 16.70 | 15.57 |
Minimum Capital RequiredBasel III Fully Phasedin (amount) | $ 297,847 | $ 309,421 |
Minimum Capital RequiredBasel III Fully Phasedin (ratio) | 10.50 | 10.50 |
Required to be Considered Well Capitalized, amount | $ 283,664 | $ 294,687 |
Required to be Considered Well Capitalized, ratio | 10 | 10 |
Leverage Ratio | ||
Actual amount | $ 438,337 | $ 421,952 |
Actual ratio | 10.91 | 11.12 |
Minimum Capital RequiredBasel III Fully Phasedin (amount) | $ 160,664 | $ 151,772 |
Minimum Capital RequiredBasel III Fully Phasedin (ratio) | 4 | 4 |
Required to be Considered Well Capitalized, amount | $ 200,830 | $ 189,715 |
Required to be Considered Well Capitalized, ratio | 5 | 5 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
INCOME TAXES | ||||
Income tax expense | $ 2,692 | $ 539 | $ 5,177 | $ 2,407 |
Effective tax rate (as a percent) | 18.70% | 19.95% | 19.25% | 19.87% |
Statutory rate (as a percent) | 21.00% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
EARNINGS PER SHARE | ||||
Net income for common shareholders | $ 11,703 | $ 2,163 | $ 21,722 | $ 9,704 |
Weighted-average shares (thousands) | ||||
Basic weighted-average shares outstanding | 24,447 | 24,752 | 24,477 | 24,839 |
Dilutive effect of outstanding stock options and unvested restricted stock awards | 124 | 28 | 114 | 46 |
Diluted weighted-average shares outstanding | 24,571 | 24,780 | 24,591 | 24,885 |
Earnings per share: | ||||
Basic | $ 0.48 | $ 0.09 | $ 0.89 | $ 0.39 |
Diluted | $ 0.48 | $ 0.09 | $ 0.88 | $ 0.39 |
EARNINGS PER SHARE - Weighted a
EARNINGS PER SHARE - Weighted average shares (Details) - shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from diluted weighted-average shares | 80,000 | 80,000 | |
Non-performance based restricted stock | Unvested restricted stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from diluted weighted-average shares | 1,800 |