0001140361-22-018337 | 10-Q | XBRL Viewer | South Plains Financial INC

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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2022	May 06, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Document Transition Report	false
Entity File Number	001-38895
Entity Registrant Name	South Plains Financial, Inc.
Entity Central Index Key	0001163668
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	75-2453320
Entity Address, Address Line One	5219 City Bank Parkway
Entity Address, City or Town	Lubbock
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	79407
City Area Code	806
Local Phone Number	792-7101
Title of 12(b) Security	Common Stock, $1.00 par value per share
Trading Symbol	SPFI
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	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,618,573

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
ASSETS
Cash and due from banks	$ 65,717	$ 68,425
Interest-bearing deposits in banks	462,895	418,396
Cash and cash equivalents	528,612	486,821
Securities available for sale	793,404	724,504
Loans held for sale	29,599	76,507
Loans held for investment	2,453,631	2,437,577
Allowance for loan losses	(39,649)	(42,098)
Loans held for investment, net	2,413,982	2,395,479
Accrued interest receivable	10,512	13,900
Premises and equipment, net	57,387	57,699
Bank-owned life insurance	72,274	71,978
Goodwill	19,508	19,508
Intangible assets, net	5,503	5,895
Mortgage servicing rights	25,425	19,700
Deferred tax asset, net	8,393	3,038
Other assets	35,145	26,826
Total assets	3,999,744	3,901,855
Deposits:
Noninterest-bearing	1,131,215	1,071,367
Interest-bearing	2,318,942	2,269,855
Total deposits	3,450,157	3,341,222
Accrued expenses and other liabilities	40,305	31,038
Subordinated debt securities	75,821	75,775
Junior subordinated deferrable interest debentures	46,393	46,393
Total liabilities	3,612,676	3,494,428
Stockholders' equity:
Common stock, $1.00 par value per share, 30,000,000 shares authorized; 17,673,407 and 17,760,243 issued and outstanding at March 31, 2022 and December 31, 2021, respectively	17,673	17,760
Additional paid-in capital	130,618	133,215
Retained earnings	255,078	242,750
Accumulated other comprehensive income (loss)	(16,301)	13,702
Total stockholders' equity	387,068	407,427
Total liabilities and stockholders' equity	$ 3,999,744	$ 3,901,855

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Stockholders' equity:
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, shares issued (in shares)	17,673,407	17,760,243
Common stock, shares outstanding (in shares)	17,673,407	17,760,243

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Interest income:
Loans, including fees	$ 29,378	$ 29,280
Securities:
Taxable	2,376	2,460
Non-taxable	1,144	1,170
Federal funds sold and interest-bearing deposits in banks	182	72
Total interest income	33,080	32,982
Interest expense:
Deposits	1,890	2,157
Notes payable & other borrowings	0	39
Subordinated debt securities	1,012	1,019
Junior subordinated deferrable interest debentures	231	223
Total interest expense	3,133	3,438
Net interest income	29,947	29,544
Provision for loan losses	(2,085)	89
Net interest income, after provision for loan losses	32,032	29,455
Noninterest income:
Service charges on deposit accounts	1,773	1,573
Income from insurance activities	1,570	1,112
Net gain on sales of loans	7,493	15,943
Bank card services and interchange fees	3,222	2,642
Other mortgage banking income	6,144	2,873
Investment commissions	546	430
Fiduciary fees	612	836
Other	2,337	1,091
Total noninterest income	23,697	26,500
Noninterest expense:
Salaries and employee benefits	22,703	24,318
Occupancy and equipment, net	3,737	3,565
Professional services	2,625	1,573
Marketing and development	720	568
IT and data services	1,053	1,054
Bank card expenses	1,323	1,049
Appraisal expenses	565	681
Other	5,198	4,249
Total noninterest expense	37,924	37,057
Income before income taxes	17,805	18,898
Income tax expense	3,527	3,738
Net income (loss)	$ 14,278	$ 15,160
Earnings per share:
Basic (in dollars per share)	$ 0.81	$ 0.84
Diluted (in dollars per share)	$ 0.78	$ 0.82
Net income	$ 14,278	$ 15,160
Other comprehensive loss:
Unrealized losses on securities available for sale	(44,877)	(18,492)
Less: Change in fair value on hedged state and municipal securities	6,899	6,933
Tax effect	7,975	2,428
Other comprehensive income (loss)	(30,003)	(9,131)
Comprehensive income (loss)	$ (15,725)	$ 6,029

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Balance at Dec. 31, 2020	$ 18,076	$ 141,112	$ 189,521	$ 21,339	$ 370,048
Balance (in shares) at Dec. 31, 2020	18,076,364
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 0	0	15,160	0	15,160
Cash dividends declared	0	0	(904)	0	(904)
Other comprehensive loss	0	0	0	(9,131)	(9,131)
Exercise of employee stock options and vesting of restricted stock units, net of shares for cashless exercise and net of shares for taxes	$ 20	(126)	0	0	(106)
Exercise of employee stock options and vesting of restricted stock units, net of shares for cashless exercise and net of shares for taxes (in shares)	20,049
Repurchases of common stock	$ (43)	(743)	0	0	(786)
Repurchases of common stock (in shares)	(43,184)
Stock based compensation	$ 0	390	0	0	390
Balance at Mar. 31, 2021	$ 18,053	140,633	203,777	12,208	374,671
Balance (in shares) at Mar. 31, 2021	18,053,229
Balance at Dec. 31, 2021	$ 17,760	133,215	242,750	13,702	$ 407,427
Balance (in shares) at Dec. 31, 2021	17,760,243				17,760,243
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 0	0	14,278	0	$ 14,278
Cash dividends declared	0	0	(1,950)	0	(1,950)
Other comprehensive loss	0	0	0	(30,003)	(30,003)
Exercise of employee stock options and vesting of restricted stock units, net of shares for cashless exercise and net of shares for taxes	$ 19	(214)	0	0	(195)
Exercise of employee stock options and vesting of restricted stock units, net of shares for cashless exercise and net of shares for taxes (in shares)	19,662
Repurchases of common stock	$ (106)	(2,911)	0	0	(3,017)
Repurchases of common stock (in shares)	(106,498)
Stock based compensation	$ 0	528	0	0	528
Balance at Mar. 31, 2022	$ 17,673	$ 130,618	$ 255,078	$ (16,301)	$ 387,068
Balance (in shares) at Mar. 31, 2022	17,673,407				17,673,407

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract]
Cash dividends, common (in dollars per share)	$ 0.11	$ 0.05
Exercise of employee stock options, shares for cashless exercise (in shares)	4,824	1,100
Exercise of employee stock options, shares for taxes (in shares)	6,857	5,013

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 14,278	$ 15,160
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	(2,085)	89
Depreciation and amortization	1,705	1,617
Accretion and amortization	1,063	1,129
Other gains, net	358	(2)
Net gain on sales of loans	(7,493)	(15,943)
Proceeds from sales of loans held for sale	288,280	434,582
Loans originated for sale	(235,129)	(436,176)
Deferred income tax expense (benefit)	2,620	885
Earnings on bank-owned life insurance	(296)	(330)
Stock-based compensation	528	390
Change in valuation of mortgage servicing rights	(4,475)	(1,287)
Net change in:
Accrued interest receivable and other assets	1,995	(418)
Accrued expenses and other liabilities	9,267	8,452
Net cash provided by operating activities	70,616	8,148
Activity in securities available for sale:
Purchases	(132,412)	(37,046)
Maturities, prepayments, and calls	17,618	43,350
Loan originations and principal collections, net	(16,660)	(22,094)
Purchases of premises and equipment	(1,316)	(90)
Proceeds from sales of premises and equipment	39	17
Proceeds from sales of foreclosed assets	133	354
Net cash used in investing activities	(132,598)	(15,509)
Cash flows from financing activities:
Net change in deposits	108,935	181,281
Net change in short-term borrowings	0	(9,025)
Payments to tax authorities for stock-based compensation	(195)	(106)
Payments made on notes payable and other borrowings	0	(50,000)
Cash dividends on common stock	(1,950)	(904)
Payments to repurchase common stock	(3,017)	(786)
Net cash provided by financing activities	103,773	120,460
Net change in cash and cash equivalents	41,791	113,099
Beginning cash and cash equivalents	486,821	300,307
Ending cash and cash equivalents	528,612	413,406
Supplemental disclosures of cash flow information:
Interest paid on deposits and borrowed funds	3,553	4,070
Income taxes paid	0	0
Supplemental schedule of noncash activities:
Loans transferred to foreclosed assets	242	378
Additions to mortgage servicing rights	$ 1,250	$ 3,222

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2022

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations – South Plains Financial, Inc. (“SPFI”) is a Texas corporation and registered bank holding company that conducts its principal activities through its subsidiaries from offices located throughout Texas and Eastern New Mexico. Principal activities include commercial and retail banking, along with insurance, investment, trust, and mortgage services. The following are subsidiaries of SPFI:

Wholly-Owned, Consolidated Subsidiaries:
City Bank	Bank subsidiary
Windmark Insurance Agency, Inc. (“Windmark”)	Non-bank subsidiary
Ruidoso Retail, Inc.	Non-bank subsidiary
CB Provence, LLC	Non-bank subsidiary
CBT Brushy Creek, LLC	Non-bank subsidiary
CBT Properties, LLC	Non-bank subsidiary
Wholly-Owned, Equity Method Subsidiaries:
South Plains Financial Capital Trusts (SPFCT) III-V	Non-bank subsidiaries

Basis of Presentation and Consolidation – The consolidated financial statements in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 (this “Form 10-Q”) include the accounts of SPFI and its wholly-owned consolidated subsidiaries (collectively referred to as the “Company”) identified above. All significant intercompany balances and transactions have been eliminated in consolidation.

The interim consolidated financial statements in this Form 10-Q have not been audited by an independent registered public accounting firm, but in the opinion of management, reflect all adjustments necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows. All such adjustments were of a normal and recurring nature. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the financial statements do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements, and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.

Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Determination of the adequacy of the allowance for loan losses is a material estimate that is particularly susceptible to significant change in the near term; the assumptions used in stock-based compensation, derivatives, mortgage servicing rights, the valuation of foreclosed assets, and fair values of financial instruments can also involve significant management estimates.

Securities – Investment securities may be classified into trading, held to maturity (“HTM”) or available for sale (“AFS”) portfolios. Securities that are held principally for resale in the near term are classified as trading. Securities that management has the ability and positive intent to hold to maturity are classified as HTM and recorded at amortized cost. Securities not classified as trading or HTM are AFS and are reported at fair value with unrealized gains and losses excluded from earnings, but included in the determination of other comprehensive income (loss). Management uses these assets as part of its asset/liability management strategy; they may be sold in response to changes in liquidity needs, interest rates, resultant prepayment risk changes, and other factors. Management determines the appropriate classification of securities at the time of purchase. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Realized gains and losses and declines in value judged to be other-than-temporary are included in gain (loss) on sale of securities. The cost of securities sold is based on the specific identification method.

When the fair value of a security is below its amortized cost, additional analysis is performed to determine whether an other-than-temporary impairment condition exists. The analysis considers (i) whether there is intent to sell securities prior to recovery and/or maturity, (ii) whether it is more likely than not that securities will have to be sold prior to recovery and/or maturity, and (iii) whether there is a credit loss component to the impairment. Often, the information available to conduct these assessments is limited and rapidly changing, making estimates of fair value subject to judgment. If actual information or conditions are different than estimated, the extent of the impairment of a security may be different than previously estimated, which could have a material effect on the Company’s results of operations and financial condition.

Loans – Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balances net of any unearned income, charge-offs, unamortized deferred fees and costs on originated loans, and premiums or discounts on purchased loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the straight-line method, which is not materially different from the effective interest method required by GAAP.

Loans are placed on nonaccrual status when, in management’s opinion, collection of interest is unlikely, which typically occurs when principal or interest payments are more than ninety days past due. When interest accrual is discontinued, all unpaid accrued interest is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Allowance for Loan Losses – The allowance for loan losses is established by management as an estimate to cover probable loan losses through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Company’s allowance for loan losses consists of specific valuation allowances established for probable losses on specific loans and general valuation allowances calculated based on historical loan loss experience for similar loans with similar characteristics and trends, judgmentally adjusted for general economic conditions and other qualitative risk factors internal and external to the Company.

The allowance for loan losses is evaluated on a quarterly basis by management and is based upon management’s review of the collectability of the loans in the Company’s loan portfolio in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral. Loans originated by the bank subsidiary are generally secured by specific items of collateral including real property, crops, livestock, consumer assets, and other business assets.

While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on various factors. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the bank subsidiary to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. All loans rated substandard or worse and greater than $250 thousand are specifically reviewed to determine if they are impaired. Factors considered by management in determining whether a loan is impaired include payment status and the sources, amounts, and probabilities of estimated cash flow available to service debt in relation to amounts due according to contractual terms. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

Loans that are determined to be impaired are then evaluated to determine estimated impairment, if any. GAAP allows impairment to be measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Loans that are not individually determined to be impaired or are not subject to the specific review of impaired status are subject to the general valuation allowance portion of the allowance for loan losses.

The Company may modify its loan agreement with a borrower. The modification will be considered a troubled debt restructuring (“TDR”) if the following criteria are met: (1) the borrower is experiencing a financial difficulty and (2) the Company makes a concession that it would not otherwise make. Concessions may include debt forgiveness, interest rate change, or maturity extension. Each of these loans is impaired and is evaluated for impairment, with a specific reserve recorded as necessary based on probable losses related to collateral and cash flow. A loan will no longer be required to be reported as restructured in calendar years following the restructure if the interest rate at the time of restructure is greater than or equal to the rate the Company was willing to accept for a new extension of credit with similar risk and the loan is in compliance with its modified terms.

Acquired Loans – Loans that the Company acquires in connection with business combinations are recorded at fair value with no carryover of the acquired entity’s related allowance for loan losses. The fair value of the acquired loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest.

Any loans the Company determines have evidence of deterioration of credit quality since origination, and it is probable, at acquisition, that all contractually required payments will not be collected, are considered to be purchase credit impaired loans.The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable discount. These loans are accounted for under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. The nonaccretable discount includes estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows will require the Company to evaluate the need for an additional allowance. Subsequent improvement in expected cash flows will result in the reversal of a corresponding amount of the nonaccretable discount which the Company will then reclassify as accretable discount that will be recognized into interest income over the remaining life of the loan.

Loans acquired through business combinations that do not meet the specific criteria of ASC 310-30 are accounted for under ASC 310-20, Receivables—Nonrefundable Fees and Other Costs. These loans are initially recorded at fair value, and include credit and interest rate marks associated with acquisition accounting adjustments. Purchase premiums or discounts are subsequently amortized as an adjustment to yield over the estimated contractual lives of the loans. There is no allowance for loan losses established at the acquisition date for acquired performing loans. An allowance for loan losses is recorded for any credit deterioration in these loans subsequent to acquisition.

Acquired loans that met the criteria for impaired or nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if the Company expects to fully collect the new carrying value (i.e., fair value) of the loans. As such, the Company may no longer consider the loan to be nonaccrual or nonperforming at the date of acquisition and may accrue interest on these loans, including the impact of any accretable discount. In addition, charge-offs on such loans would be first applied to the nonaccretable difference portion of the fair value adjustment.

Mortgage Servicing Rights – When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in net gain on sale of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates present value of estimated future servicing income.

Under the fair value measurement method, the Company measures servicing rights at fair value at each reporting date and reports change in fair value of servicing assets in earnings in the period in which the changes occur, and are included with other noninterest income in the combined financial statements. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses.

Goodwill and Other Intangible Assets – Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is not amortized, but is tested for impairment on October 31 of each year or more frequently if events and circumstances exist that indicate that an impairment test should be performed. There was no goodwill impairment recorded for the three months ended March 31, 2022 and the year ended December 31, 2021, respectively.

Core deposit intangible (“CDI”) is a measure of the value of checking and savings deposit relationships acquired in a business combination. The fair value of the CDI stemming from any given business combination is based on the present value of the expected cost savings attributable to the core deposit funding relative to an alternative source of funding. CDI is amortized over the estimated useful lives of the existing deposit relationships acquired, but does not exceed 10 years. Substantially all CDI is amortized using the sum of the years’ digits method.

The remaining other intangible assets consist of customer relationship and employment agreement intangible assets and are amortized over their estimated useful lives of 5 years using the straight-line method.

Mortgage Banking Derivatives – Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market, forward commitments for the future delivery of these mortgage loans, and forward sales of mortgage-backed securities are accounted for as free standing derivatives. At the time of the interest rate lock, the Company determines whether the loan will be sold through a best efforts contract or a mandatory delivery contract.

In order to hedge the change in interest rates resulting from the commitments to fund the loans that will be sold through a best efforts contract, the Company enters into forward loans sales commitments for the future delivery of mortgage loans when interest rate locks are entered. At inception, these interest rate locks and the related forward loan sales commitments, adjusted for the expected exercise of the commitment before the loan is funded, are recorded with a zero value. Subsequent changes in fair value are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked.

In order to hedge the change in interest rates resulting from all other mortgage commitments to funds loans, the Company enters into forward sales of mortgage-backed securities contracts. At inception, these interest rate locks are recorded at fair value and are adjusted for the expected exercise of the commitment before the loan is funded. Subsequent changes in fair value are estimated based on changes in mortgage interest rates from the date the interest on the loan is locked. Changes in the fair values of these derivatives are included in net gain on sales of loans in the consolidated financial statements.

Derivatives – At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. Changes in the fair value of derivatives that do not qualify for hedge accounting are reported currently in earnings, as noninterest income.

Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged.

The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings.

Stock-Based Compensation – The Company sponsors an equity incentive plan under which options to acquire shares of the Company’s common stock may be granted periodically to all full-time employees and directors of the Company or its affiliates at a specific exercise price. Shares are issued out of authorized and unissued common shares that have been reserved for issuance under such plan. Compensation cost is measured based on the estimated fair value of the award at the grant date and is recognized in earnings on a straight-line basis over the requisite service period. The fair value of stock options is estimated at the date of grant using a closed form option valuation (“Black-Scholes”) option pricing model. This model requires assumptions as to the expected stock volatility, dividends, terms and risk-free rates. The expected volatility is based on the combination of the Company’s historical volatility and the volatility of comparable peer banks. The expected term represents the period of time that options are expected to be outstanding from the grant date. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the appropriate life of each stock option.

Earnings per Share – Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. Employee Stock Ownership Plan (“ESOP”) shares are considered outstanding for this calculation unless unearned. Diluted earnings per share includes the dilutive effect of unearned ESOP shares, if applicable. Diluted earnings per share includes the dilutive effect of additional potential shares issuable under stock options. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements.

Segment Information – The Company has two reportable segments: banking and insurance. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company’s reportable segments are strategic business units that offer different products and services. Operations are managed and financial performance is evaluated on a Company-wide basis.

Reclassifications – Certain amounts from the 2021 consolidated financial statements have been reclassified to conform to the March 31, 2022 presentation.

Recent Accounting Pronouncements – FASB ASC constitutes GAAP for nongovernmental entities. Updates to ASC are prescribed in Accounting Standards Updates (“ASU”), which are not authoritative until incorporated into ASC.

ASU 2021-01, Reference Rate Reform (Topic 848). In January 2021, the FASB issued ASU No. 2021-01 to clarify the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. This update additionally clarified that a receive-variable-rate, pay-variable-rate cross-currency interest rate swap may be considered an eligible hedging instrument in a net investment hedge if both legs of the swap do not have the same repricing intervals and dates as a result of reference rate reform. This update was effective upon issuance and generally can be applied through December 31, 2022. See the discussion regarding the adoption of ASU 2020-04 below.

ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In March 2020, the FASB issued ASU 2020-04 and it provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. This update applies only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The expedients and exceptions in this update are available to all entities starting March 12, 2020 through December 31, 2022. The adoption of ASU 2020-04 did not significantly impact the Company’s consolidated financial statements.

ASU 2019-12, Income Taxes, Simplifying the Accounting for Income Taxes (Topic 740). In December 2019, the FASB issued ASU 2019-12 to simplify the accounting for income taxes by removing certain exceptions to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition for deferred tax liabilities for outside basis differences. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The adoption of ASU 2019-12 did not have a material effect on the Company’s financial statements.

ASU 2016-13 Financial Instruments - Credit Losses (Topic 326). The FASB issued guidance to replace the incurred loss model with an expected loss model, which is referred to as the current expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables, held to maturity securities, and debt securities. ASU 2016-13 is effective for the Company for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company has contracted with a third-party vendor to assist in the implementation of CECL. The model has been developed and validation is underway. The Company expects to adopt CECL effective January 1, 2023.

ASU 2016-02 Leases (Topic 842). The FASB amended existing guidance that requires that lessees recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. These amendments are effective for the Company for annual periods beginning after December 15, 2021, and interim periods beginning after December 15, 2022. Based upon an analysis performed, the Company estimates that the right of use asset and corresponding lease liability at adoption will be between $10.8 million and $11.3 million.

Subsequent Events – The Company has evaluated subsequent events and transactions from March 31, 2022 through the date this Form 10-Q was filed with the SEC for potential recognition or disclosure as required by GAAP.

SECURITIES

3 Months Ended

Mar. 31, 2022

SECURITIES [Abstract]

SECURITIES

2. SECURITIES

The amortized cost and fair value of securities, with gross unrealized gains and losses, at the dates indicated follows (dollars in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2022
Available for sale:
U.S. government and agencies	$	—	$	—	$	—		$	—
State and municipal		263,318		223		(10,533	)		253,008
Mortgage-backed securities		422,603		106		(24,276	)		398,433
Collateralized mortgage obligations		103,976		1,043		—			105,019
Asset-backed and other amortizing securities		24,775		3		(243	)		24,535
Other securities		12,000		428		(19	)		12,409
	$	826,672	$	1,803	$	(35,071	)	$	793,404

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2021
Available for sale:
U.S. government and agencies	$	—	$	—	$	—		$	—
State and municipal		265,143		10,615		(86	)		275,672
Mortgage-backed securities		302,973		4,230		(4,114	)		303,089
Collateralized mortgage obligations		106,733		—		(413	)		106,320
Asset-backed and other amortizing securities		26,046		1,108		(218	)		26,936
Other securities		12,000		487		—			12,487
	$	712,895	$	16,440	$	(4,831	)	$	724,504

The amortized cost and fair value of securities at March 31, 2022 are presented below by contractual maturity (dollars in thousands). Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Other securities are shown separately since they are not due at a single maturity date.

	Available for Sale
	Amortized Cost		Fair Value
Within 1 year	$	954	$	962
After 1 year through 5 years		8,480		8,571
After 5 years through 10 years		22,185		22,574
After 10 years		243,699		233,310
Other		551,354		527,987
	$	826,672	$	793,404

At both March 31, 2022 and December 31, 2021, there were no holdings of securities of any one issuer, other than the U.S. government, its agencies, or its sponsored enterprises, in an amount greater than 10% of stockholders’ equity.

Securities with a carrying value of approximately $479.2 million and $474.5 million at March 31, 2022 and December 31, 2021, respectively, were pledged to collateralize public deposits and for other purposes as required or permitted by law.

The following table segregates securities with unrealized losses at the periods indicated, by the duration they have been in a loss position (dollars in thousands):

	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
March 31, 2022
U.S. government and agencies	$	—	$	—	$	—	$	—	$	—	$	—
State and municipal		231,142		10,099		4,323		434		235,465		10,533
Mortgage-backed securities		318,090		14,524		74,294		9,752		392,384		24,276
Collateralized mortgage obligations		—		—		—		—		—		—
Asset-backed and other amortizing securities		22,964		243		—		—		22,964		243
Other securities		1,481		19		—		—		1,481		19
	$	573,677	$	24,885	$	78,617	$	10,186	$	652,294	$	35,071

December 31, 2021
U.S. government and agencies	$	—	$	—	$	—	$	—	$	—	$	—
State and municipal		21,255		86		—		—		21,255		86
Mortgage-backed securities		56,398		1,197		64,764		2,917		121,162		4,114
Collateralized mortgage obligations		106,320		413		—		—		106,320		413
Asset-backed and other amortizing securities		1,624		218		—		—		1,624		218
Other securities		—		—		—		—		—		—
	$	185,597	$	1,914	$	64,764	$	2,917	$	250,361	$	4,831

There were 130 securities with an unrealized loss at March 31, 2022. Management does not believe that these losses are other than temporary as there is no intent to sell any of these securities before recovery and it is not probable the Company will be required to sell any of these securities before recovery, and credit loss, if any, is not material. These unrealized losses are largely due to recent significant increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their maturity date or if market yields for such investments decline in future periods. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of March 31, 2022, management believes the impairments detailed in the table above are temporary and no impairment loss has been realized in the Company’s combined financial statements.

LOANS HELD FOR INVESTMENT

3 Months Ended

Mar. 31, 2022

LOANS HELD FOR INVESTMENT [Abstract]

LOANS HELD FOR INVESTMENT

3. LOANS HELD FOR INVESTMENT

Loans are summarized by category as of the periods presented below (dollars in thousands):

	March 31, 2022			December 31, 2021
Commercial real estate	$	771,490		$	755,444
Commercial - specialized		350,143			378,725
Commercial - general		475,593			460,024
Consumer:
1-4 family residential		378,361			387,690
Auto loans		255,703			240,719
Other consumer		73,245			68,113
Construction		149,096			146,862
		2,453,631			2,437,577
Allowance for loan losses		(39,649	)		(42,098	)
Loans, net	$	2,413,982		$	2,395,479

The Company has certain lending policies, underwriting standards, and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies, underwriting standards, and procedures on a regular basis and makes changes as appropriate. Management receives frequent reports related to loan originations, quality, concentrations, delinquencies, non-performing, and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geography.

Commercial – General and Specialized – Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably. Underwriting standards have been designed to determine whether the borrower possesses sound business ethics and practices, evaluate current and projected cash flows to determine the ability of the borrower to repay their obligations, as agreed and ensure appropriate collateral is obtained to secure the loan. Commercial loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as real estate, accounts receivable, or inventory, and include personal guarantees. Owner-occupied real estate is included in commercial loans, as the repayment of these loans is generally dependent on the operations of the commercial borrower’s business rather than on income-producing properties or the sale of the properties. Commercial loans are grouped into two distinct sub-categories: specialized and general. Commercial related segments that are considered “specialized” include agricultural production and real estate loans, energy loans, and finance, investment, and insurance loans. Commercial related segments that contain a broader diversity of borrowers, sub-industries, or serviced industries are grouped into the “general category.” These include goods, services, restaurant & retail, construction, and other industries.

Commercial Real Estate – Commercial real estate loans are also subject to underwriting standards and processes similar to commercial loans. These loans are underwritten primarily based on projected cash flows for income-producing properties and collateral values for non-income-producing properties. The repayment of these loans is generally dependent on the successful operation of the property securing the loans or the sale or refinancing of the property. Real estate loans may be adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are diversified by type and geographic location. This diversity helps reduce the exposure to adverse economic events that affect any single market or industry.

Construction – Loans for residential construction are for single-family properties to developers, builders, or end-users. These loans are underwritten based on estimates of costs and completed value of the project. Funds are advanced based on estimated percentage of completion for the project. Performance of these loans is affected by economic conditions as well as the ability to control costs of the projects.

Consumer – Loans to consumers include 1-4 family residential loans, auto loans, and other loans for recreational vehicles or other purposes. The Company utilizes a computer-based credit scoring analysis to supplement its policies and procedures in underwriting consumer loans. The Company’s loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimizes the Company’s risk. The Company generally requires mortgage title insurance and hazard insurance on 1-4 family residential loans.

The allowance for loan losses was $39.6 million at March 31, 2022, compared to $42.1 million at December 31, 2021. The allowance for loan losses to loans held for investment was 1.62% at March 31, 2022 and 1.73% at December 31, 2021.

The following table details the activity in the allowance for loan losses for the periods indicated (dollars in thousands). Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

	Beginning Balance		Provision for Loan Losses			Charge-offs			Recoveries		Ending Balance
For the three months ended March 31, 2022
Commercial real estate	$	17,245	$	(2,649	)	$	—		$	25	$	14,621
Commercial - specialized		4,363		(1,083	)		(39	)		34		3,275
Commercial - general		8,466		1,659			(307	)		122		9,940
Consumer:
1-4 family residential		5,268		(298	)		(40	)		1		4,931
Auto loans		3,653		68			(86	)		46		3,681
Other consumer		1,357		147			(185	)		65		1,384
Construction		1,746		71			—			—		1,817
Total	$	42,098	$	(2,085	)	$	(657	)	$	293	$	39,649

For the three months ended March 31, 2021
Commercial real estate	$	18,962	$	58		$	—		$	—	$	19,020
Commercial - specialized		5,760		(378	)		—			76		5,458
Commercial - general		9,227		52			(344	)		44		8,979
Consumer:
1-4 family residential		4,646		295			(52	)		1		4,890
Auto loans		4,226		(180	)		(188	)		33		3,891
Other consumer		1,671		4			(257	)		62		1,480
Construction		1,061		238			—			2		1,301
Total	$	45,553	$	89		$	(841	)	$	218	$	45,019

The following table shows the Company’s investment in loans disaggregated based on the method of evaluating impairment at the dates indicated (dollars in thousands):

	Recorded Investment				Allowance for Loan Losses
	Individually Evaluated		Collectively Evaluated		Individually Evaluated		Collectively Evaluated
March 31, 2022
Commercial real estate	$	1,063	$	770,427	$	546	$	14,075
Commercial - specialized		—		350,143		—		3,275
Commercial - general		4,941		470,652		479		9,461
Consumer:
1-4 family residential		2,002		376,359		166		4,765
Auto loans		—		255,703		—		3,681
Other consumer		—		73,245		—		1,384
Construction		—		149,096		—		1,817

Total	$	8,006	$	2,445,625	$	1,191	$	38,458

December 31, 2021
Commercial real estate	$	1,101	$	754,343	$	584	$	16,661
Commercial - specialized		—		378,725		—		4,363
Commercial - general		5,078		454,946		585		7,881
Consumer:
1-4 family residential		1,592		386,098		175		5,093
Auto loans		—		240,719		—		3,653
Other consumer		—		68,113		—		1,357
Construction		—		146,862		—		1,746

Total	$	7,771	$	2,429,806	$	1,344	$	40,754

Impaired loan information at the dates indicated follows (dollars in thousands):

	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
March 31, 2022
Commercial real estate	$	1,063	$	—	$	1,063	$	1,063	$	546	$	2,375
Commercial - specialized		—		—		—		—		—		—
Commercial - general		4,941		1,112		3,829		4,941		479		4,897
Consumer:
1-4 family		2,002		1,298		704		2,002		166		1,930
Auto loans		—		—		—		—		—		—
Other consumer		—		—		—		—		—		—
Construction		—		—		—		—		—		—

Total	$	8,006	$	2,410	$	5,596	$	8,006	$	1,191	$	9,202

December 31, 2021
Commercial real estate	$	1,101	$	—	$	1,101	$	1,101	$	584	$	3,687
Commercial - specialized		—		—		—		—		—		—
Commercial - general		5,078		1,143		3,935		5,078		585		4,852
Consumer:
1-4 family		1,592		880		712		1,592		175		1,857
Auto loans		—		—		—		—		—		—
Other consumer		—		—		—		—		—		—
Construction		—		—		—		—		—		—

Total	$	7,771	$	2,023	$	5,748	$	7,771	$	1,344	$	10,396

All impaired loans $250 thousand and greater were specifically evaluated for impairment. Interest income recognized using a cash-basis method on impaired loans for the three months ended March 31, 2022 and the year ended December 31, 2021 was not significant. Additional funds committed to be advanced on impaired loans are not significant.

The table below provides an age analysis on accruing past-due loans and nonaccrual loans at the dates indicated (dollars in thousands):

	30-89 Days Past Due		90 Days or More Past Due		Nonaccrual
March 31, 2022
Commercial real estate	$	58	$	1,302	$	1,063
Commercial - specialized		111		82		122
Commercial - general		1,729		96		4,994
Consumer:
1-4 Family residential		4,127		944		2,914
Auto loans		326		31		—
Other consumer		1,128		124		43
Construction		1,186		14		412

Total	$	8,665	$	2,593	$	9,548

December 31, 2021
Commercial real estate	$	393	$	45	$	1,101
Commercial - specialized		265		20		156
Commercial - general		4,032		97		5,236
Consumer:
1-4 Family residential		2,496		903		2,815
Auto loans		332		—		—
Other consumer		538		15		44
Construction		937		—		166

Total	$	8,993	$	1,080	$	9,518

The Company grades its loans on a thirteen-point grading scale. These grades fit in one of the following categories: (i) pass, (ii) special mention, (iii) substandard, (iv) doubtful, or (v) loss. Loans categorized as loss are charged-off immediately. The grading of loans reflect a judgment by the Company about the risks of default associated with the loan. The Company reviews the grades on loans as part of the company's on-going monitoring of the credit quality of the loan portfolio.

Pass loans have financial factors or nature of collateral that are considered reasonable credit risks in the normal course of lending and encompass several grades that are assigned based on varying levels of risk, ranging from credits that are secured by cash or marketable securities, to watch credits which have all the characteristics of an acceptable credit risk but warrant more than the normal level of monitoring.

Special mention loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of repayment prospects for the loans at some future date.

Substandard loans are inadequately protected by the current net worth and paying capacity of the borrower or by the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize collection and present the distinct possibility that some loss will be sustained if the deficiencies are not corrected. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed. Substandard loans can be accruing or can be nonaccrual depending on the circumstances of the individual loans.

Doubtful loans have all the weaknesses inherent in substandard loans with the added characteristics that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. All doubtful loans are on nonaccrual.

The following table summarizes the internal classifications of loans at the dates indicated (dollars in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
March 31, 2022
Commercial real estate	$	731,097	$	—	$	40,393	$	—	$	771,490
Commercial - specialized		348,785		—		1,358		—		350,143
Commercial - general		450,144		1,662		23,787		—		475,593
Consumer:
1-4 family residential		369,181		—		9,180		—		378,361
Auto loans		255,518		—		185		—		255,703
Other consumer		73,049		—		196		—		73,245
Construction		148,418		—		678		—		149,096

Total	$	2,376,192	$	1,662	$	75,777	$	—	$	2,453,631

December 31, 2021
Commercial real estate	$	713,852	$	—	$	41,592	$	—	$	755,444
Commercial - specialized		372,797		—		5,928		—		378,725
Commercial - general		450,790		1,676		7,558		—		460,024
Consumer:
1-4 family residential		379,458		—		8,232		—		387,690
Auto loans		239,869		—		850		—		240,719
Other consumer		67,822		—		291		—		68,113
Construction		146,696		—		166		—		146,862

Total	$	2,371,284	$	1,676	$	64,617	$	—	$	2,437,577

Under section 4013 of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), banks may elect to deem that loan modifications do not result in a classification as a TDR if they are (1) related to the COVID-19 pandemic; (2) executed on a loan that was not more than 30 days past due as of December 31, 2020; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the national emergency or (B) December 31, 2020. Under section 540 of the Consolidated Appropriations Act, 2021 (the “Act”), section 4013 of the CARES Act was amended to extend the period for loan modifications to the earlier of (1) January 1, 2022, or (2) 60 days after the date of termination of the national emergency. The Company elected to adopt the provisions of the CARES Act and the Act.

Additionally, other short-term modifications made on a good faith basis in response to the COVID-19 pandemic to borrowers who were current prior to any relief are not TDRs under ASC 310-40 and the interagency statement released by the federal banking regulators on April 7, 2020 in response to the COVID-19 pandemic (the “Joint Interagency Regulatory Guidance”). This includes short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented.

In response to the COVID-19 pandemic, the Company implemented a short-term deferral modification program that complies with ASC 310-40 and the Joint Interagency Regulatory Guidance. As of March 31, 2022 and December 31, 2021, the Company had no loans under an active modification that comply with ASC 310-40 and the Joint Interagency Regulatory Guidance.

Beginning in April 2020, the Company began offering additional COVID-19 related deferral and modification of principal and/or interest payments to selected borrowers on a case-by-case basis that were outside the scope of the short-term deferral modification program. These additional modifications comply with the provisions of section 4013 of the CARES Act and section 501 of the Act. As of March 31, 2022, the Company had 1 loan totaling approximately $6.0 million subject to these deferral and modification agreements. As of December 31, 2021 the Company had 3 loans totaling approximately $15.9 million subject to these deferral and modification agreements, representing 0.65% of outstanding loans held for investment.

There were no loans modified as a TDR during the three months ended March 31, 2022 and the year ended December 31, 2021.

GOODWILL AND INTANGIBLES

3 Months Ended

Mar. 31, 2022

GOODWILL AND INTANGIBLES [Abstract]

GOODWILL AND INTANGIBLES

4. GOODWILL AND INTANGIBLES

The Company had goodwill of $19.5 million at March 31, 2022 and December 31, 2021.

Other intangible assets, which consist of CDI, customer lists, and employment agreements at the dates indicated are summarized below (dollars in thousands):

	March 31, 2022			December 31, 2021

Amortized intangible assets
Core deposit intangible	$	6,679		$	6,679
Less: Accumulated amortization		(2,712	)		(2,469	)
		3,967			4,210

Other intangibles		2,972			2,972
Arising from business combinations		—			—
Less: Accumulated amortization		(1,436	)		(1,287	)
		1,536			1,685
Other intangible assets, net	$	5,503		$	5,895

MORTGAGE SERVICING RIGHTS

3 Months Ended

Mar. 31, 2022

MORTGAGE SERVICING RIGHTS [Abstract]

MORTGAGE SERVICING RIGHTS

5. Mortgage Servicing Rights

The following table reflects the changes in fair value of the Company’s mortgage servicing rights asset included in the Consolidated Balance Sheets, and other information related to the serviced portfolio, for the periods or dates presented (dollars in thousands):

	Three Months Ended March 31,
	2022			2021
Beginning balance	$	19,700		$	9,049
Additions		1,250			3,222
Valuation adjustment		4,475			1,287
Ending balance	$	25,425		$	13,558

	March 31,			December 31,
		2022			2021
Mortgage loans serviced for others	$	2,028,339		$	1,953,095
Mortgage servicing rights assets as a percentage of serviced mortgage loans		1.25	%		1.01	%

The following table reflects the key assumptions used in measuring the fair value of the Company's mortgage servicing rights as of the dates indicated:

	March 31,			December 31,
	2022			2021
Weighted average constant prepayment rate		8.48	%		12.35	%
Weighted average discount rate		8.63	%		9.14	%
Weighted average life in years		7.49			6.03

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 30
-Section 50
-Paragraph 1A
-Subparagraph (c)(3)
-URI http://asc.fasb.org/extlink&oid=109249958&loc=SL6224234-111729

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 30
-Section 50
-Paragraph 1A
-Subparagraph (b)(2)
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+ Details

BORROWING ARRANGEMENTS	3 Months Ended
BORROWING ARRANGEMENTS	Mar. 31, 2022
BORROWING ARRANGEMENTS [Abstract]
BORROWING ARRANGEMENTS	6. BORROWING ARRANGEMENTS Subordinated Debt Securities In December 2018, the Company issued $26.5 million in subordinated debt securities. $12.4 million of the subordinated debt securities have a maturity date of December 2028 and a weighted average fixed rate of 5.74% for the first five years. The remaining $14.1 million of subordinated debt securities have a maturity date of December 2030 and a weighted average fixed rate of 6.41% for the first seven years. After the fixed rate periods, the subordinated debt securities issued in December 2018 will float at the Wall Street Journal prime rate, with a floor of 4.5% and a ceiling of 7.5%. These subordinated debt securities pay interest quarterly, are unsecured, and may be called by the Company at any time after the remaining maturity is five years or less. Additionally, these subordinated debt securities are intended to qualify for Tier 2 capital treatment, subject to regulatory limitations. On September 29, 2020, the Company issued $50.0 million in subordinated debt securities. Proceeds from the issuance of these subordinated debt securities were reduced by approximately $926 thousand in debt issuance costs. The subordinated debt securities issued in September 2020 have a maturity date of September 2030 with a fixed rate of 4.50% for the first five years. After the expiration of the fixed rate period, the subordinated debt securities will reset quarterly at a variable rate equal to the then current three-month Secured Overnight Financing Rate, as published by the Federal Reserve Bank of New York, plus 438 basis points. These subordinated debt securities pay interest semi-annually, are unsecured, and may be called by the Company at any time after the remaining maturity is five years or less. Additionally, these subordinated debt securities are intended to qualify for Tier 2 capital treatment, subject to regulatory limitations. As of March 31, 2022, the total amount of the Company’s subordinated debt securities outstanding was $76.5 million less approximately $651 thousand of remaining debt issuance costs for a total balance of $75.8 million. As of December 31, 2021, the total amount of subordinated debt securities outstanding was $76.5 million less approximately $697 thousand of remaining debt issuance costs for a total balance of $75.8 million. Notes Payable and Other Borrowings As of March 31, 2022, and December 31, 2021, City Bank had no outstanding advances from the Federal Home Loan Bank of Dallas (“FHLB”).

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2022

STOCK-BASED COMPENSATION [Abstract]

STOCK-BASED COMPENSATION

7. STOCK-BASED COMPENSATION

Equity Incentive Plan

The 2019 Equity Incentive Plan (“Plan”) was approved by the Company’s Board of Directors on January 16, 2019 and by its shareholders on March 6, 2019. The purpose of the Plan is to: (i) attract and retain the best available personnel for positions of substantial responsibility, (ii) provide additional incentive to employees, directors and consultants, and (iii) promote the success of the Company’s business. This Plan permits the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, performance shares, and other stock-based awards. The maximum aggregate number of shares of common stock that may be issued pursuant to all awards under the Plan is 2,300,000. The maximum aggregate number of shares that may be issued under the Plan may be increased annually by up to 3% of the total issued and outstanding common shares of the Company at the beginning of each fiscal year.

The fair value of each option award is estimated on the date of grant using the Black-Scholes model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock and similar peer company averages. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted represents the period of time that options granted are expected to be outstanding, which takes in to account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on U.S. Treasury yield curve in effect at the time of the grant.

Options

A summary of activity in the Plan for the period indicated is presented in the table below (dollars in thousands, except per share data):

	Number of Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Three Months Ended March 31, 2022
Outstanding at beginning of year:		1,602,028		$	15.42			$	17,883
Granted		45,203			29.40				—
Exercised		(7,413	)		18.58				(59	)
Forfeited		(5,886	)		19.22				(43	)
Expired		—			—				—

Balance, March 31, 2022		1,633,932		$	15.78		5.86	$	17,781

Exercisable at end of period		1,191,915		$	14.05		5.29	$	14,941

Vested at end of period		1,191,915		$	14.05		5.29	$	14,941

A summary of assumptions used to calculate the fair values of the awards granted during the periods noted is presented below:

	ThreeMonths Ended March 31,
	2022		2021
Expected volatility	40.20% to 40.29%			41.20% to 41.32%
Expected dividend yield		1.30%		1.00%
Expected term (years)	6.1 to 6.3		6.1 to 6.2
Risk-free interest rate	1.56% to 1.95%			0.52% to 0.83%
Weighted average grant date fair value	$	10.54	$	7.07

The total intrinsic value of options exercised during the three months ended March 31, 2022 and March 31, 2021 was $74 thousand and $9 thousand, respectively.

Restricted Stock Awards and Units

A summary of activity in the Plan for the period indicated is presented in the table below:

	Number of Shares			Weighted-Average Grant Date Fair Value
Three Months Ended March 31, 2022
Outstanding at beginning of year:		42,767		$	19.35
Granted		73,359			28.85
Vested		(23,930	)		19.38
Forfeited		(2,888	)		28.03

Balance, March 31, 2022		89,308		$	26.87

Restricted stock units granted under the Plan typically vest from one to four years, but vesting periods may vary. Compensation expense for these grants will be recognized over the vesting period of the awards based on the fair value of the stock at the issue date.

The total unrecognized compensation cost for the awards outstanding under the Plan at March 31, 2022 was $4.6 million and will be recognized over a weighted average remaining period of 1.72 years. The total fair value of restricted stock units vested during each of the three months ended March 31, 2022 and March 31, 2021 was $464 and $489 thousand, respectively.

OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2022

OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES [Abstract]

OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES

8. OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES

Financial instruments with off-balance-sheet risk - The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Company’s consolidated financial statements. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for recorded instruments.

Financial instruments whose contract amounts represent credit risk outstanding at the dates indicated follow (dollars in thousands):

	March 31, 2022		December 31, 2021
Commitments to grant loans and unfunded commitments under lines of credit	$	620,871	$	542,338
Standby letters of credit		13,208		12,418

Commitments to grant loans and extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. Essentially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company requires collateral supporting those commitments if deemed necessary.

Litigation - In July 2020, a vendor claimed that City Bank had breached a contract by failing to timely pay amounts allegedly due and owing. City Bank vigorously rejected any such non-payment contentions and filed suit against the vendor. With the lawsuit, City Bank sought, among other claims and relief, an injunction against the vendor. After an evidentiary hearing, the court entered a temporary injunction against the vendor expressly prohibiting it from, among other things, terminating the contract pending trial. Based upon discovery in the lawsuit, City Bank also filed a breach of contract claim against the vendor alleging that the vendor violated City Bank’s contractual exclusivity rights. The vendor has filed counterclaims, including for declaratory relief that the contracts should be declared unenforceable. In October 2021, the vendor filed a counterclaim alleging that City Bank’s attempted enforcement of its exclusivity rights contravenes the Texas Free Enterprise and Antitrust Act. The vendor purports to seek actual damages, to treble such actual damages, attorney's fees and expenses. The case remains ongoing and trial is set for October 2022. City Bank intends to continue a vigorous pursuit of its claims against the vendor. In addition, City Bank pursues a number of substantive factual and legal challenges to the vendor’s counterclaims and believes the counterclaims are without merit. At this time, the ultimate outcome is unknown and an estimated range of any loss cannot be made.

The Company is a defendant in legal actions arising from time to time in the normal course of business. Management believes that the ultimate liability, if any, arising from these matters will not materially affect the combined financial statements, based on information known as of the date of the combined financial statements.

FHLB Letters of Credit - The Company may use FHLB letters of credit to pledge to certain public deposits. There were no FHLB letters of credit outstanding at March 31, 2022 or December 31, 2021.

CAPITAL AND REGULATORY MATTERS

3 Months Ended

Mar. 31, 2022

CAPITAL AND REGULATORY MATTERS [Abstract]

CAPITAL AND REGULATORY MATTERS

9. CAPITAL AND REGULATORY MATTERS

The Company and its bank subsidiary are subject to various regulatory capital requirements administered by its banking regulators. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and its bank subsidiary’s financial statements. Under capital guidelines and the regulatory framework for prompt corrective action, the Company and its bank subsidiary must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

In July 2013, the Federal Reserve published final rules for the adoption of the Basel III regulatory capital framework (“Basel III”). Basel III, among other things, (i) introduced a new capital measure called Common Equity Tier 1 (“CET1”), (ii) specified that Tier 1 capital consists of CET1 and Additional Tier 1 Capital instruments meeting specified requirements, (iii) defined CET1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital and (iv) expanded the scope of the deductions/adjustments as compared to existing regulations. Basel III became effective for the Company and its bank subsidiary on January 1, 2016 with certain transition provisions fully phased-in on January 1, 2019.

Quantitative measures established by regulation to ensure capital adequacy require the Company and its bank subsidiary to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of March 31, 2022 and December 31, 2021, that the Company and its bank subsidiary met all capital adequacy requirements to which they are subject.

As of March 31, 2022, the bank subsidiary was well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since March 31, 2022 that management believes have changed the bank subsidiary’s category.

The Company and its bank subsidiary’s actual capital amounts and ratios at the dates indicated follows (dollars in thousands):

	Actual					Minimum Required Under BASEL III Fully Phased-In					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
March 31, 2022
Total Capital to Risk Weighted Assets:
Consolidated	$	535,998		18.22	%	$	308,961		10.50	%		N/A		N/A
City Bank		431,140		14.66	%		308,882		10.50	%	$	294,173		10.00	%

Tier I Capital to Risk Weighted Assets:
Consolidated		423,358		14.39	%		250,111		8.50	%		N/A		N/A
City Bank		394,331		13.40	%		250,047		8.50	%		235,338		8.00	%

Common Equity Tier 1 to Risk Weighted Assets:
Consolidated		378,358		12.86	%		205,974		7.00	%		N/A		N/A
City Bank		394,331		13.40	%		205,921		7.00	%		191,212		6.50	%

Tier I Capital to Average Assets:
Consolidated		423,358		10.78	%		158,049		4.00	%		N/A		N/A
City Bank		394,331		10.05	%		157,958		4.00	%		196,196		5.00	%

December 31, 2021
Total Capital to Risk Weighted Assets:
Consolidated	$	524,836		18.40	%	$	299,521		10.50	%		N/A		N/A
City Bank		425,748		14.93	%		299,465		10.50	%	$	285,205		10.00	%

Tier I Capital to Risk Weighted Assets:
Consolidated		413,322		14.49	%		242,469		8.50	%		N/A		N/A
City Bank		390,015		13.67	%		242,424		8.50	%		228,164		8.00	%

Common Equity Tier 1 to Risk Weighted Assets:
Consolidated		368,322		12.91	%		199,681		7.00	%		N/A		N/A
City Bank		390,015		13.67	%		199,644		7.00	%		185,383		6.50	%

Tier I Capital to Average Assets:
Consolidated		413,322		10.77	%		154,592		4.00	%		N/A		N/A
City Bank		390,015		10.16	%		154,503		4.00	%		191,859		5.00	%

State banking regulations place certain restrictions on dividends paid by banks to their shareholders. Dividends paid by the Company’s bank subsidiary would be prohibited if the effect thereof would cause the bank subsidiary’s capital to be reduced below applicable minimum capital requirements.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

DERIVATIVES

3 Months Ended

Mar. 31, 2022

DERIVATIVES [Abstract]

DERIVATIVES

10. DERIVATIVES

The Company utilizes interest rate swap agreements as part of its asset-liability management strategy to help manage its interest rate risk position. These interest rate swaps are designated and qualify as fair value hedges and are entered into to reduce exposure to changes in fair value of fixed rate financial instruments. The notional amount of the interest rate swaps do not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amounts and the other terms of the individual interest rate swap agreements.

The following table reflects the changes in fair value hedges included in the Consolidated Statements of Comprehensive Income (Loss) as of the periods indicated (dollars in thousands):

		Three Months Ended
		March 31,
Interest Rate Contracts	Location	2022			2021
Interest rate swaps - fair value hedges	Interest income	$	(136	)	$	(175	)
Fair value hedge ineffectiveness	Other noninterest expense	$	149		$	127

The following table reflects the fair value hedges included in the Consolidated Balance Sheets at the dates indicated (dollars in thousands):

	March 31, 2022				December 31, 2021
	Notional Amount		Fair Value		Notional Amount		Fair Value

Included in other liabilities:
Interest rate swaps related to fixed rate loans	$	1,019	$	39	$	9,775	$	429
Interest rate swaps related to state and municipal securities		—		—		—		—

Included in other assets:
Interest rate swaps related to fixed rate loans	$	8,650	$	68	$	—	$	—
Interest rate swaps related to state and municipal securities		123,760		12,435		123,760		5,686

Mortgage banking derivatives

The net gains (losses) relating to free standing derivative instruments used for risk management are summarized below as of the periods indicated (dollars in thousands):

		Three Months Ended
		March 31,
	Location	2022			2021
Forward contracts related to mortgage loans held for sale	Net gain (loss) on sales of loans	$	(1,093	)	$	(101	)
Interest rate lock commitments	Net gain (loss) on sales of loans	$	1,057		$	1,089

The following table reflects the amount and fair value of mortgage banking derivatives in the Consolidated Balance Sheets at the dates indicated (dollars in thousands):

	March 31, 2022				December 31, 2021
	Notional Amount		Fair Value		Notional Amount		Fair Value

Included in other assets:
Forward contracts related to mortgage loans held for sale	$	—	$	—	$	—	$	—
Interest rate lock commitments		96,387		2,699		104,437		1,642

Total included in other assets	$	96,387	$	2,699	$	104,437	$	1,642


Included in other liabilities:
Forward contracts related to mortgage loans held for sale	$	83,384	$	1,199	$	93,120	$	106
Interest rate lock commitments		—		—		—		—

Total included in other liabilities	$	83,384	$	1,199	$	93,120	$	106

The Company had received cash collateral of $12.3 million to offset asset derivative positions on its interest rate swaps at March 31, 2022. This amount is reported in other liabilities in the consolidated balance sheets. The Company had advanced $1.1 million to offset liability derivative positions on its interest rate swaps at March 31, 2022. Additionally, the Company had advanced $440 thousand on its mortgage forward contracts at March 31, 2022. The advanced cash collateral amounts are reported in cash and due from banks in the consolidated balance sheets.

EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2022

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

11. EARNINGS PER SHARE

The factors used in the earnings per share computation for the periods indicated follow (dollars in thousands, except per share data):

	Three Months Ended March 31,
	2022		2021
Net income	$	14,278	$	15,160

Weighted average common shares outstanding - basic		17,716,136		18,069,186
Effect of dilutive securities:
Stock-based compensation awards		676,261		441,934
Weighted average common shares outstanding - diluted		18,392,397		18,511,120

Basic earnings per share	$	0.81	$	0.84
Diluted earnings per share	$	0.78	$	0.82

SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2022

SEGMENT INFORMATION [Abstract]

SEGMENT INFORMATION

12. SEGMENT INFORMATION

Financial results by reportable segment as of the periods indicated are detailed below (dollars in thousands):

Three Months Ended March 31, 2022	Banking			Insurance			Consolidated
Net interest income	$	29,947		$	—		$	29,947
Provision for loan losses		2,085			—			2,085
Noninterest income		22,183			1,514			23,697
Noninterest expense		(36,255	)		(1,669	)		(37,924	)

Income before income taxes		17,960			(155	)		17,805

Income tax (expense) benefit		(3,559	)		32			(3,527	)

Net income (loss)	$	14,401		$	(123	)	$	14,278

Three Months Ended March 31, 2021	Banking			Insurance			Consolidated
Net interest income	$	29,544		$	—		$	29,544
Provision for loan losses		(89	)		—			(89	)
Noninterest income		25,417			1,083			26,500
Noninterest expense		(35,955	)		(1,102	)		(37,057	)

Income before income taxes		18,917			(19	)		18,898

Income tax (expense) benefit		(3,741	)		3			(3,738	)

Net income (loss)	$	15,176		$	(16	)	$	15,160

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

FAIR VALUE DISCLOSURES

3 Months Ended

Mar. 31, 2022

FAIR VALUE DISCLOSURES [Abstract]

FAIR VALUE DISCLOSURES

13. 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 between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs 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. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability is not adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact.

Valuation techniques that are consistent with the market approach, the income approach and/or the cost approach are required by GAAP. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset. Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy for valuation inputs 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 - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

●

Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.

●

Level 3 Inputs - Significant unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

The following table summarizes fair value measurements at the dates indicated (dollars in thousands):

	Level 1		Level 2			Level 3		Total
March 31, 2022
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
U.S. government and agencies	$	—	$	—		$	—	$	—
State and municipal		—		253,008			—		253,008
Mortgage-backed securities		—		398,433			—		398,433
Collateralized mortgage obligations		—		105,019			—		105,019
Asset-backed and other amortizing securities		—		24,535			—		24,535
Other securities		—		12,409			—		12,409
Loans held for sale (mandatory)		—		22,323			—		22,323
Mortgage servicing rights		—		—			25,425		25,425
Asset derivatives		—		15,202			—		15,202
Liability derivatives		—		(1,238	)		—		(1,238	)

Assets measured at fair value on a non-recurring basis:
Impaired loans		—		—			6,815		6,815

December 31, 2021
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
U.S. government and agencies	$	—	$	—		$	—	$	—
State and municipal		—		275,672			—		275,672
Mortgage-backed securities		—		303,089			—		303,089
Collateralized mortgage obligations		—		106,320			—		106,320
Asset-backed and other amortizing securities		—		26,936			—		26,936
Other securities		—		12,487			—		12,487
Loans held for sale (mandatory)		—		47,593			—		47,593
Mortgage servicing rights		—		—			19,700		19,700
Asset derivatives		—		7,328			—		7,328
Liability derivatives		—		(535	)		—		(535	)

Assets measured at fair value on a non-recurring basis:
Impaired loans		—		—			6,427		6,427

Securities – Fair value is calculated based on market prices of similar securities using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities that are not actively traded.

Loans held for sale (mandatory) – Loans held for sale originated for mandatory delivery are reported at fair value. Fair value is determined using quoted prices for similar assets, adjusted for specific attributes of that loan.

Mortgage servicing rights – Mortgage servicing rights are reported at fair value using Level 3 inputs. The mortgage servicing rights asset is valued by projecting net servicing cash flows, which are then discounted to estimate the fair value. The fair value of the mortgage servicing rights asset is impacted by a variety of factors, including prepayment and discount rates, which are significant unobservable inputs.

Derivatives – Fair value of derivatives is based on valuation models using observable market data as of the measurement date.

Impaired loans – Impaired loans are reported at the fair value of the underlying collateral, less estimated disposal costs, if repayment is expected solely from the sale of the collateral. Collateral values are estimated using Level 2 inputs based on observable market data or Level 3 inputs based on customized discounting criteria.

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at the dates indicated (dollars in thousands):

	Fair Value		Valuation Techniques	Unobservable Inputs	Range of Discounts
March 31, 2022
Non-recurring:
Impaired loans	$	6,815	Third party appraisals or inspections	Collateral discounts and selling costs		20%-100	%
Recurring:
Mortgage servicing rights		25,425	Discounted cash flows	Conditional prepayment rate		8.48	%
				Discount rate		8.63	%

December 31, 2021
Non-recurring:
Impaired loans	$	6,427	Third party appraisals or inspections	Collateral discounts and selling costs		20%-100	%
Recurring:
Mortgage servicing rights		19,700	Discounted cash flows	Conditional prepayment rate		12.35	%
				Discount rate		9.14	%

The estimated fair values, and related carrying amounts, of the Company’s financial instruments that are not previously disclosed in the recurring fair value section are as follows (dollars in thousands):

	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value

March 31, 2022
Financial assets:
Cash and cash equivalents	$	528,612	$	528,612	$	—	$	—	$	528,612
Loans held for investment, net		2,413,982		—		—		2,413,792		2,413,792
Loans held for sale (best efforts)		7,276		—		7,454		—		7,454
Accrued interest receivable		10,512		—		10,512		—		10,512

Financial liabilities:
Deposits	$	3,450,157	$	—	$	3,450,510	$	—	$	3,450,510
Accrued interest payable		952		—		952		—		952
Junior subordinated deferrable interest debentures		46,393		—		33,850		—		33,850
Subordinated debt securities		75,821		—		79,562		—		79,562

	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value

December 31, 2021
Financial assets:
Cash and cash equivalents	$	486,821	$	486,821	$	—	$	—	$	486,821
Loans held for investment, net		2,395,479		—		—		2,397,079		2,397,079
Loans held for sale (best efforts)		28,914		—		29,500		—		29,500
Accrued interest receivable		13,900		—		13,900		—		13,900

Financial liabilities:
Deposits	$	3,341,222	$	3,004,091	$	339,797	$	—	$	3,343,888
Short-term borrowings		26,550		26,550		—		—		26,550
Accrued interest payable		1,914		—		1,914		—		1,914
Junior subordinated deferrable interest debentures		46,393		—		45,690		—		45,690
Subordinated debt securities		75,775		—		77,939		—		77,939

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

SUBSEQUENT EVENTS	3 Months Ended
SUBSEQUENT EVENTS	Mar. 31, 2022
SUBSEQUENT EVENTS [Abstract]
SUBSEQUENT EVENTS	14. SUBSEQUENT EVENTS On April 21, 2022, the Company declared a cash dividend of $0.11 per share of common stock to be paid on May 16, 2022 to all shareholders of record as of May 2, 2022.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2022

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Nature of Operations

Wholly-Owned, Consolidated Subsidiaries:
City Bank	Bank subsidiary
Windmark Insurance Agency, Inc. (“Windmark”)	Non-bank subsidiary
Ruidoso Retail, Inc.	Non-bank subsidiary
CB Provence, LLC	Non-bank subsidiary
CBT Brushy Creek, LLC	Non-bank subsidiary
CBT Properties, LLC	Non-bank subsidiary
Wholly-Owned, Equity Method Subsidiaries:
South Plains Financial Capital Trusts (SPFCT) III-V	Non-bank subsidiaries

Consolidation

Basis of Presentation

Use of Estimates

Securities

Loans

Allowance for Loan Losses

Acquired Loans

Mortgage Servicing Rights

Goodwill and Other Intangible Assets

Mortgage Banking Derivatives

Derivatives

Stock-Based Compensation

Earnings per Share

Segment Information

Reclassifications

Reclassifications – Certain amounts from the 2021 consolidated financial statements have been reclassified to conform to the March 31, 2022 presentation.

Recent Accounting Pronouncements

Subsequent Events

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2022

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Subsidiaries Information

The following are subsidiaries of SPFI:

Wholly-Owned, Consolidated Subsidiaries:
City Bank	Bank subsidiary
Windmark Insurance Agency, Inc. (“Windmark”)	Non-bank subsidiary
Ruidoso Retail, Inc.	Non-bank subsidiary
CB Provence, LLC	Non-bank subsidiary
CBT Brushy Creek, LLC	Non-bank subsidiary
CBT Properties, LLC	Non-bank subsidiary
Wholly-Owned, Equity Method Subsidiaries:
South Plains Financial Capital Trusts (SPFCT) III-V	Non-bank subsidiaries

SECURITIES (Tables)

3 Months Ended

Mar. 31, 2022

SECURITIES [Abstract]

Amortized Cost and Fair Value of Securities with Gross Unrealized Gains and Losses

The amortized cost and fair value of securities, with gross unrealized gains and losses, at the dates indicated follows (dollars in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
March 31, 2022
Available for sale:
U.S. government and agencies	$	—	$	—	$	—		$	—
State and municipal		263,318		223		(10,533	)		253,008
Mortgage-backed securities		422,603		106		(24,276	)		398,433
Collateralized mortgage obligations		103,976		1,043		—			105,019
Asset-backed and other amortizing securities		24,775		3		(243	)		24,535
Other securities		12,000		428		(19	)		12,409
	$	826,672	$	1,803	$	(35,071	)	$	793,404

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2021
Available for sale:
U.S. government and agencies	$	—	$	—	$	—		$	—
State and municipal		265,143		10,615		(86	)		275,672
Mortgage-backed securities		302,973		4,230		(4,114	)		303,089
Collateralized mortgage obligations		106,733		—		(413	)		106,320
Asset-backed and other amortizing securities		26,046		1,108		(218	)		26,936
Other securities		12,000		487		—			12,487
	$	712,895	$	16,440	$	(4,831	)	$	724,504

Amortized Cost and Fair Value of Securities by Contractual Maturity

	Available for Sale
	Amortized Cost		Fair Value
Within 1 year	$	954	$	962
After 1 year through 5 years		8,480		8,571
After 5 years through 10 years		22,185		22,574
After 10 years		243,699		233,310
Other		551,354		527,987
	$	826,672	$	793,404

Securities with Unrealized Losses Segregated by the Period in a Loss Position

The following table segregates securities with unrealized losses at the periods indicated, by the duration they have been in a loss position (dollars in thousands):

	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
March 31, 2022
U.S. government and agencies	$	—	$	—	$	—	$	—	$	—	$	—
State and municipal		231,142		10,099		4,323		434		235,465		10,533
Mortgage-backed securities		318,090		14,524		74,294		9,752		392,384		24,276
Collateralized mortgage obligations		—		—		—		—		—		—
Asset-backed and other amortizing securities		22,964		243		—		—		22,964		243
Other securities		1,481		19		—		—		1,481		19
	$	573,677	$	24,885	$	78,617	$	10,186	$	652,294	$	35,071

December 31, 2021
U.S. government and agencies	$	—	$	—	$	—	$	—	$	—	$	—
State and municipal		21,255		86		—		—		21,255		86
Mortgage-backed securities		56,398		1,197		64,764		2,917		121,162		4,114
Collateralized mortgage obligations		106,320		413		—		—		106,320		413
Asset-backed and other amortizing securities		1,624		218		—		—		1,624		218
Other securities		—		—		—		—		—		—
	$	185,597	$	1,914	$	64,764	$	2,917	$	250,361	$	4,831

LOANS HELD FOR INVESTMENT (Tables)

3 Months Ended

Mar. 31, 2022

LOANS HELD FOR INVESTMENT [Abstract]

Summary of Loans by Category

Loans are summarized by category as of the periods presented below (dollars in thousands):

	March 31, 2022			December 31, 2021
Commercial real estate	$	771,490		$	755,444
Commercial - specialized		350,143			378,725
Commercial - general		475,593			460,024
Consumer:
1-4 family residential		378,361			387,690
Auto loans		255,703			240,719
Other consumer		73,245			68,113
Construction		149,096			146,862
		2,453,631			2,437,577
Allowance for loan losses		(39,649	)		(42,098	)
Loans, net	$	2,413,982		$	2,395,479

Activity in Allowance for Loan Losses and Investment in Loans Disaggregated Based on Method of Evaluating Impairment

	Beginning Balance		Provision for Loan Losses			Charge-offs			Recoveries		Ending Balance
For the three months ended March 31, 2022
Commercial real estate	$	17,245	$	(2,649	)	$	—		$	25	$	14,621
Commercial - specialized		4,363		(1,083	)		(39	)		34		3,275
Commercial - general		8,466		1,659			(307	)		122		9,940
Consumer:
1-4 family residential		5,268		(298	)		(40	)		1		4,931
Auto loans		3,653		68			(86	)		46		3,681
Other consumer		1,357		147			(185	)		65		1,384
Construction		1,746		71			—			—		1,817
Total	$	42,098	$	(2,085	)	$	(657	)	$	293	$	39,649

For the three months ended March 31, 2021
Commercial real estate	$	18,962	$	58		$	—		$	—	$	19,020
Commercial - specialized		5,760		(378	)		—			76		5,458
Commercial - general		9,227		52			(344	)		44		8,979
Consumer:
1-4 family residential		4,646		295			(52	)		1		4,890
Auto loans		4,226		(180	)		(188	)		33		3,891
Other consumer		1,671		4			(257	)		62		1,480
Construction		1,061		238			—			2		1,301
Total	$	45,553	$	89		$	(841	)	$	218	$	45,019

The following table shows the Company’s investment in loans disaggregated based on the method of evaluating impairment at the dates indicated (dollars in thousands):

	Recorded Investment				Allowance for Loan Losses
	Individually Evaluated		Collectively Evaluated		Individually Evaluated		Collectively Evaluated
March 31, 2022
Commercial real estate	$	1,063	$	770,427	$	546	$	14,075
Commercial - specialized		—		350,143		—		3,275
Commercial - general		4,941		470,652		479		9,461
Consumer:
1-4 family residential		2,002		376,359		166		4,765
Auto loans		—		255,703		—		3,681
Other consumer		—		73,245		—		1,384
Construction		—		149,096		—		1,817

Total	$	8,006	$	2,445,625	$	1,191	$	38,458

December 31, 2021
Commercial real estate	$	1,101	$	754,343	$	584	$	16,661
Commercial - specialized		—		378,725		—		4,363
Commercial - general		5,078		454,946		585		7,881
Consumer:
1-4 family residential		1,592		386,098		175		5,093
Auto loans		—		240,719		—		3,653
Other consumer		—		68,113		—		1,357
Construction		—		146,862		—		1,746

Total	$	7,771	$	2,429,806	$	1,344	$	40,754

Impaired Loan Information

Impaired loan information at the dates indicated follows (dollars in thousands):

	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
March 31, 2022
Commercial real estate	$	1,063	$	—	$	1,063	$	1,063	$	546	$	2,375
Commercial - specialized		—		—		—		—		—		—
Commercial - general		4,941		1,112		3,829		4,941		479		4,897
Consumer:
1-4 family		2,002		1,298		704		2,002		166		1,930
Auto loans		—		—		—		—		—		—
Other consumer		—		—		—		—		—		—
Construction		—		—		—		—		—		—

Total	$	8,006	$	2,410	$	5,596	$	8,006	$	1,191	$	9,202

December 31, 2021
Commercial real estate	$	1,101	$	—	$	1,101	$	1,101	$	584	$	3,687
Commercial - specialized		—		—		—		—		—		—
Commercial - general		5,078		1,143		3,935		5,078		585		4,852
Consumer:
1-4 family		1,592		880		712		1,592		175		1,857
Auto loans		—		—		—		—		—		—
Other consumer		—		—		—		—		—		—
Construction		—		—		—		—		—		—

Total	$	7,771	$	2,023	$	5,748	$	7,771	$	1,344	$	10,396

Age Analysis on Accruing Past-due Loans and Nonaccrual Loans

The table below provides an age analysis on accruing past-due loans and nonaccrual loans at the dates indicated (dollars in thousands):

	30-89 Days Past Due		90 Days or More Past Due		Nonaccrual
March 31, 2022
Commercial real estate	$	58	$	1,302	$	1,063
Commercial - specialized		111		82		122
Commercial - general		1,729		96		4,994
Consumer:
1-4 Family residential		4,127		944		2,914
Auto loans		326		31		—
Other consumer		1,128		124		43
Construction		1,186		14		412

Total	$	8,665	$	2,593	$	9,548

December 31, 2021
Commercial real estate	$	393	$	45	$	1,101
Commercial - specialized		265		20		156
Commercial - general		4,032		97		5,236
Consumer:
1-4 Family residential		2,496		903		2,815
Auto loans		332		—		—
Other consumer		538		15		44
Construction		937		—		166

Total	$	8,993	$	1,080	$	9,518

Summary of Internal Classifications of Loans

The following table summarizes the internal classifications of loans at the dates indicated (dollars in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
March 31, 2022
Commercial real estate	$	731,097	$	—	$	40,393	$	—	$	771,490
Commercial - specialized		348,785		—		1,358		—		350,143
Commercial - general		450,144		1,662		23,787		—		475,593
Consumer:
1-4 family residential		369,181		—		9,180		—		378,361
Auto loans		255,518		—		185		—		255,703
Other consumer		73,049		—		196		—		73,245
Construction		148,418		—		678		—		149,096

Total	$	2,376,192	$	1,662	$	75,777	$	—	$	2,453,631

December 31, 2021
Commercial real estate	$	713,852	$	—	$	41,592	$	—	$	755,444
Commercial - specialized		372,797		—		5,928		—		378,725
Commercial - general		450,790		1,676		7,558		—		460,024
Consumer:
1-4 family residential		379,458		—		8,232		—		387,690
Auto loans		239,869		—		850		—		240,719
Other consumer		67,822		—		291		—		68,113
Construction		146,696		—		166		—		146,862

Total	$	2,371,284	$	1,676	$	64,617	$	—	$	2,437,577

GOODWILL AND INTANGIBLES (Tables)

3 Months Ended

Mar. 31, 2022

GOODWILL AND INTANGIBLES [Abstract]

Other Intangible Assets

Other intangible assets, which consist of CDI, customer lists, and employment agreements at the dates indicated are summarized below (dollars in thousands):

	March 31, 2022			December 31, 2021

Amortized intangible assets
Core deposit intangible	$	6,679		$	6,679
Less: Accumulated amortization		(2,712	)		(2,469	)
		3,967			4,210

Other intangibles		2,972			2,972
Arising from business combinations		—			—
Less: Accumulated amortization		(1,436	)		(1,287	)
		1,536			1,685
Other intangible assets, net	$	5,503		$	5,895

MORTGAGE SERVICING RIGHTS (Tables)

3 Months Ended

Mar. 31, 2022

MORTGAGE SERVICING RIGHTS [Abstract]

Change in Fair Value of Mortgage Servicing Rights Asset and Other Information

	Three Months Ended March 31,
	2022			2021
Beginning balance	$	19,700		$	9,049
Additions		1,250			3,222
Valuation adjustment		4,475			1,287
Ending balance	$	25,425		$	13,558

	March 31,			December 31,
		2022			2021
Mortgage loans serviced for others	$	2,028,339		$	1,953,095
Mortgage servicing rights assets as a percentage of serviced mortgage loans		1.25	%		1.01	%

Key Assumptions Used in Measuring Fair Value of Mortgage Servicing Rights

The following table reflects the key assumptions used in measuring the fair value of the Company's mortgage servicing rights as of the dates indicated:

	March 31,			December 31,
	2022			2021
Weighted average constant prepayment rate		8.48	%		12.35	%
Weighted average discount rate		8.63	%		9.14	%
Weighted average life in years		7.49			6.03

STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2022

STOCK-BASED COMPENSATION [Abstract]

Summary of Stock Option Activity

A summary of activity in the Plan for the period indicated is presented in the table below (dollars in thousands, except per share data):

	Number of Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life in Years		Aggregate Intrinsic Value
Three Months Ended March 31, 2022
Outstanding at beginning of year:		1,602,028		$	15.42			$	17,883
Granted		45,203			29.40				—
Exercised		(7,413	)		18.58				(59	)
Forfeited		(5,886	)		19.22				(43	)
Expired		—			—				—

Balance, March 31, 2022		1,633,932		$	15.78		5.86	$	17,781

Exercisable at end of period		1,191,915		$	14.05		5.29	$	14,941

Vested at end of period		1,191,915		$	14.05		5.29	$	14,941

Summary of Assumptions Used to Calculate Fair Value of Awards

A summary of assumptions used to calculate the fair values of the awards granted during the periods noted is presented below:

	ThreeMonths Ended March 31,
	2022		2021
Expected volatility	40.20% to 40.29%			41.20% to 41.32%
Expected dividend yield		1.30%		1.00%
Expected term (years)	6.1 to 6.3		6.1 to 6.2
Risk-free interest rate	1.56% to 1.95%			0.52% to 0.83%
Weighted average grant date fair value	$	10.54	$	7.07

Summary of Activity of Restricted Stock Units

A summary of activity in the Plan for the period indicated is presented in the table below:

	Number of Shares			Weighted-Average Grant Date Fair Value
Three Months Ended March 31, 2022
Outstanding at beginning of year:		42,767		$	19.35
Granted		73,359			28.85
Vested		(23,930	)		19.38
Forfeited		(2,888	)		28.03

Balance, March 31, 2022		89,308		$	26.87

OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Mar. 31, 2022

OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES [Abstract]

Financial Instrument Whose Contract Amounts Represent Credit Risk Outstanding

Financial instruments whose contract amounts represent credit risk outstanding at the dates indicated follow (dollars in thousands):

	March 31, 2022		December 31, 2021
Commitments to grant loans and unfunded commitments under lines of credit	$	620,871	$	542,338
Standby letters of credit		13,208		12,418

CAPITAL AND REGULATORY MATTERS (Tables)

3 Months Ended

Mar. 31, 2022

CAPITAL AND REGULATORY MATTERS [Abstract]

Actual Capital Amounts and Ratios

The Company and its bank subsidiary’s actual capital amounts and ratios at the dates indicated follows (dollars in thousands):

	Actual					Minimum Required Under BASEL III Fully Phased-In					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
March 31, 2022
Total Capital to Risk Weighted Assets:
Consolidated	$	535,998		18.22	%	$	308,961		10.50	%		N/A		N/A
City Bank		431,140		14.66	%		308,882		10.50	%	$	294,173		10.00	%

Tier I Capital to Risk Weighted Assets:
Consolidated		423,358		14.39	%		250,111		8.50	%		N/A		N/A
City Bank		394,331		13.40	%		250,047		8.50	%		235,338		8.00	%

Common Equity Tier 1 to Risk Weighted Assets:
Consolidated		378,358		12.86	%		205,974		7.00	%		N/A		N/A
City Bank		394,331		13.40	%		205,921		7.00	%		191,212		6.50	%

Tier I Capital to Average Assets:
Consolidated		423,358		10.78	%		158,049		4.00	%		N/A		N/A
City Bank		394,331		10.05	%		157,958		4.00	%		196,196		5.00	%

December 31, 2021
Total Capital to Risk Weighted Assets:
Consolidated	$	524,836		18.40	%	$	299,521		10.50	%		N/A		N/A
City Bank		425,748		14.93	%		299,465		10.50	%	$	285,205		10.00	%

Tier I Capital to Risk Weighted Assets:
Consolidated		413,322		14.49	%		242,469		8.50	%		N/A		N/A
City Bank		390,015		13.67	%		242,424		8.50	%		228,164		8.00	%

Common Equity Tier 1 to Risk Weighted Assets:
Consolidated		368,322		12.91	%		199,681		7.00	%		N/A		N/A
City Bank		390,015		13.67	%		199,644		7.00	%		185,383		6.50	%

Tier I Capital to Average Assets:
Consolidated		413,322		10.77	%		154,592		4.00	%		N/A		N/A
City Bank		390,015		10.16	%		154,503		4.00	%		191,859		5.00	%

DERIVATIVES (Tables)

3 Months Ended

Mar. 31, 2022

Mortgage Banking [Member]

Derivative [Line Items]

Net Gains (Losses) Relating to Derivative Instruments

The net gains (losses) relating to free standing derivative instruments used for risk management are summarized below as of the periods indicated (dollars in thousands):

		Three Months Ended
		March 31,
	Location	2022			2021
Forward contracts related to mortgage loans held for sale	Net gain (loss) on sales of loans	$	(1,093	)	$	(101	)
Interest rate lock commitments	Net gain (loss) on sales of loans	$	1,057		$	1,089

Fair Value of Derivatives in Consolidated Balance Sheets

The following table reflects the amount and fair value of mortgage banking derivatives in the Consolidated Balance Sheets at the dates indicated (dollars in thousands):

	March 31, 2022				December 31, 2021
	Notional Amount		Fair Value		Notional Amount		Fair Value

Included in other assets:
Forward contracts related to mortgage loans held for sale	$	—	$	—	$	—	$	—
Interest rate lock commitments		96,387		2,699		104,437		1,642

Total included in other assets	$	96,387	$	2,699	$	104,437	$	1,642


Included in other liabilities:
Forward contracts related to mortgage loans held for sale	$	83,384	$	1,199	$	93,120	$	106
Interest rate lock commitments		—		—		—		—

Total included in other liabilities	$	83,384	$	1,199	$	93,120	$	106

Fair Value Hedging [Member]

Derivative [Line Items]

Fair Value of Derivatives in Consolidated Balance Sheets

The following table reflects the fair value hedges included in the Consolidated Balance Sheets at the dates indicated (dollars in thousands):

	March 31, 2022				December 31, 2021
	Notional Amount		Fair Value		Notional Amount		Fair Value

Included in other liabilities:
Interest rate swaps related to fixed rate loans	$	1,019	$	39	$	9,775	$	429
Interest rate swaps related to state and municipal securities		—		—		—		—

Included in other assets:
Interest rate swaps related to fixed rate loans	$	8,650	$	68	$	—	$	—
Interest rate swaps related to state and municipal securities		123,760		12,435		123,760		5,686

Interest Rate Contracts [Member] | Fair Value Hedging [Member]

Derivative [Line Items]

Net Gains (Losses) Relating to Derivative Instruments

The following table reflects the changes in fair value hedges included in the Consolidated Statements of Comprehensive Income (Loss) as of the periods indicated (dollars in thousands):

		Three Months Ended
		March 31,
Interest Rate Contracts	Location	2022			2021
Interest rate swaps - fair value hedges	Interest income	$	(136	)	$	(175	)
Fair value hedge ineffectiveness	Other noninterest expense	$	149		$	127

EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2022

EARNINGS PER SHARE [Abstract]

Factors Used in Earnings Per Share Computation

The factors used in the earnings per share computation for the periods indicated follow (dollars in thousands, except per share data):

	Three Months Ended March 31,
	2022		2021
Net income	$	14,278	$	15,160

Weighted average common shares outstanding - basic		17,716,136		18,069,186
Effect of dilutive securities:
Stock-based compensation awards		676,261		441,934
Weighted average common shares outstanding - diluted		18,392,397		18,511,120

Basic earnings per share	$	0.81	$	0.84
Diluted earnings per share	$	0.78	$	0.82

SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2022

SEGMENT INFORMATION [Abstract]

Financial Results by Reportable Segment

Financial results by reportable segment as of the periods indicated are detailed below (dollars in thousands):

Three Months Ended March 31, 2022	Banking			Insurance			Consolidated
Net interest income	$	29,947		$	—		$	29,947
Provision for loan losses		2,085			—			2,085
Noninterest income		22,183			1,514			23,697
Noninterest expense		(36,255	)		(1,669	)		(37,924	)

Income before income taxes		17,960			(155	)		17,805

Income tax (expense) benefit		(3,559	)		32			(3,527	)

Net income (loss)	$	14,401		$	(123	)	$	14,278

Three Months Ended March 31, 2021	Banking			Insurance			Consolidated
Net interest income	$	29,544		$	—		$	29,544
Provision for loan losses		(89	)		—			(89	)
Noninterest income		25,417			1,083			26,500
Noninterest expense		(35,955	)		(1,102	)		(37,057	)

Income before income taxes		18,917			(19	)		18,898

Income tax (expense) benefit		(3,741	)		3			(3,738	)

Net income (loss)	$	15,176		$	(16	)	$	15,160

FAIR VALUE DISCLOSURES (Tables)

3 Months Ended

Mar. 31, 2022

FAIR VALUE DISCLOSURES [Abstract]

Assets (Liabilities) Measured at Fair Value on Recurring and Non-Recurring Basis

The following table summarizes fair value measurements at the dates indicated (dollars in thousands):

	Level 1		Level 2			Level 3		Total
March 31, 2022
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
U.S. government and agencies	$	—	$	—		$	—	$	—
State and municipal		—		253,008			—		253,008
Mortgage-backed securities		—		398,433			—		398,433
Collateralized mortgage obligations		—		105,019			—		105,019
Asset-backed and other amortizing securities		—		24,535			—		24,535
Other securities		—		12,409			—		12,409
Loans held for sale (mandatory)		—		22,323			—		22,323
Mortgage servicing rights		—		—			25,425		25,425
Asset derivatives		—		15,202			—		15,202
Liability derivatives		—		(1,238	)		—		(1,238	)

Assets measured at fair value on a non-recurring basis:
Impaired loans		—		—			6,815		6,815

December 31, 2021
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
U.S. government and agencies	$	—	$	—		$	—	$	—
State and municipal		—		275,672			—		275,672
Mortgage-backed securities		—		303,089			—		303,089
Collateralized mortgage obligations		—		106,320			—		106,320
Asset-backed and other amortizing securities		—		26,936			—		26,936
Other securities		—		12,487			—		12,487
Loans held for sale (mandatory)		—		47,593			—		47,593
Mortgage servicing rights		—		—			19,700		19,700
Asset derivatives		—		7,328			—		7,328
Liability derivatives		—		(535	)		—		(535	)

Assets measured at fair value on a non-recurring basis:
Impaired loans		—		—			6,427		6,427

Quantitative Information about Recurring ad Non-Recurring Level 3 Fair Value Measurements

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at the dates indicated (dollars in thousands):

	Fair Value		Valuation Techniques	Unobservable Inputs	Range of Discounts
March 31, 2022
Non-recurring:
Impaired loans	$	6,815	Third party appraisals or inspections	Collateral discounts and selling costs		20%-100	%
Recurring:
Mortgage servicing rights		25,425	Discounted cash flows	Conditional prepayment rate		8.48	%
				Discount rate		8.63	%

December 31, 2021
Non-recurring:
Impaired loans	$	6,427	Third party appraisals or inspections	Collateral discounts and selling costs		20%-100	%
Recurring:
Mortgage servicing rights		19,700	Discounted cash flows	Conditional prepayment rate		12.35	%
				Discount rate		9.14	%

Estimated Fair Values, and Related Carrying Amounts of Financial Instruments

	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value

March 31, 2022
Financial assets:
Cash and cash equivalents	$	528,612	$	528,612	$	—	$	—	$	528,612
Loans held for investment, net		2,413,982		—		—		2,413,792		2,413,792
Loans held for sale (best efforts)		7,276		—		7,454		—		7,454
Accrued interest receivable		10,512		—		10,512		—		10,512

Financial liabilities:
Deposits	$	3,450,157	$	—	$	3,450,510	$	—	$	3,450,510
Accrued interest payable		952		—		952		—		952
Junior subordinated deferrable interest debentures		46,393		—		33,850		—		33,850
Subordinated debt securities		75,821		—		79,562		—		79,562

	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value

December 31, 2021
Financial assets:
Cash and cash equivalents	$	486,821	$	486,821	$	—	$	—	$	486,821
Loans held for investment, net		2,395,479		—		—		2,397,079		2,397,079
Loans held for sale (best efforts)		28,914		—		29,500		—		29,500
Accrued interest receivable		13,900		—		13,900		—		13,900

Financial liabilities:
Deposits	$	3,341,222	$	3,004,091	$	339,797	$	—	$	3,343,888
Short-term borrowings		26,550		26,550		—		—		26,550
Accrued interest payable		1,914		—		1,914		—		1,914
Junior subordinated deferrable interest debentures		46,393		—		45,690		—		45,690
Subordinated debt securities		75,775		—		77,939		—		77,939

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Loans [Abstract]
Number of days principal or interest payments are past due for loans to be placed on nonaccrual status	90 days
Goodwill and Other Intangible Assets [Abstract]
Goodwill impairment loss	$ 0	$ 0
Minimum [Member]
Allowance for Loan Losses [Abstract]
Threshold balance of loan to be specifically reviewed for impairment	$ 250
City Bank [Member] \| Bank Subsidiary [Member]
Subsidiaries Information [Abstract]
Wholly-Owned, Consolidated Subsidiaries	City Bank
Windmark Insurance Agency, Inc. ("Windmark") [Member] \| Non-bank Subsidiary [Member]
Subsidiaries Information [Abstract]
Wholly-Owned, Consolidated Subsidiaries	Windmark Insurance Agency, Inc. (“Windmark”)
Ruidoso Retail, Inc. [Member] \| Non-bank Subsidiary [Member]
Subsidiaries Information [Abstract]
Wholly-Owned, Consolidated Subsidiaries	Ruidoso Retail, Inc.
CB Provence, LLC [Member] \| Non-bank Subsidiary [Member]
Subsidiaries Information [Abstract]
Wholly-Owned, Consolidated Subsidiaries	CB Provence, LLC
CBT Brushy Creek, LLC [Member] \| Non-bank Subsidiary [Member]
Subsidiaries Information [Abstract]
Wholly-Owned, Consolidated Subsidiaries	CBT Brushy Creek, LLC
CBT Properties, LLC [Member] \| Non-bank Subsidiary [Member]
Subsidiaries Information [Abstract]
Wholly-Owned, Consolidated Subsidiaries	CBT Properties, LLC
South Plains Financial Capital Trusts (SPFCT) III-V [Member] \| Non-bank Subsidiary [Member]
Subsidiaries Information [Abstract]
Wholly-Owned, Equity Method Subsidiaries	South Plains Financial Capital Trusts (SPFCT) III-V
Substandard or Worse [Member] \| Minimum [Member]
Allowance for Loan Losses [Abstract]
Threshold balance of loan to be specifically reviewed for impairment	$ 250
Customer Relationships [Member]
Goodwill and Other Intangible Assets [Abstract]
Estimated useful lives	5 years
Employment Agreements [Member]
Goodwill and Other Intangible Assets [Abstract]
Estimated useful lives	5 years
Core Deposit Intangible [Member] \| Maximum [Member]
Goodwill and Other Intangible Assets [Abstract]
Estimated useful lives	10 years
ASU 2016-02 [Member] \| Minimum [Member]
Recent Accounting Pronouncements [Abstract]
Right-of-use asset	$ 10,800
Lease liability	11,300
ASU 2016-02 [Member] \| Maximum [Member]
Recent Accounting Pronouncements [Abstract]
Right-of-use asset	10,800
Lease liability	$ 11,300

SECURITIES, Amortized Cost and Fair Value of Securities with Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Available for sale [Abstract]
Amortized cost	$ 826,672	$ 712,895
Gross unrealized gains	1,803	16,440
Gross unrealized losses	(35,071)	(4,831)
Fair value	793,404	724,504
U.S. Government and Agencies [Member]
Available for sale [Abstract]
Amortized cost	0	0
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Fair value	0	0
State and Municipal [Member]
Available for sale [Abstract]
Amortized cost	263,318	265,143
Gross unrealized gains	223	10,615
Gross unrealized losses	(10,533)	(86)
Fair value	253,008	275,672
Mortgage-backed Securities [Member]
Available for sale [Abstract]
Amortized cost	422,603	302,973
Gross unrealized gains	106	4,230
Gross unrealized losses	(24,276)	(4,114)
Fair value	398,433	303,089
Collateralized Mortgage Obligations [Member]
Available for sale [Abstract]
Amortized cost	103,976	106,733
Gross unrealized gains	1,043	0
Gross unrealized losses	0	(413)
Fair value	105,019	106,320
Asset-backed and Other Amortizing Securities [Member]
Available for sale [Abstract]
Amortized cost	24,775	26,046
Gross unrealized gains	3	1,108
Gross unrealized losses	(243)	(218)
Fair value	24,535	26,936
Other Securities [Member]
Available for sale [Abstract]
Amortized cost	12,000	12,000
Gross unrealized gains	428	487
Gross unrealized losses	(19)	0
Fair value	$ 12,409	$ 12,487

SECURITIES, Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Available for Sale, Amortized Cost [Abstract]
Within 1 year	$ 954
After 1 year through 5 years	8,480
After 5 years through 10 years	22,185
After 10 years	243,699
Other	551,354
Amortized cost	826,672	$ 712,895
Available for Sale, Fair Value [Abstract]
Within 1 year	962
After 1 year through 5 years	8,571
After 5 years through 10 years	22,574
After 10 years	233,310
Other	527,987
Fair value	$ 793,404	$ 724,504

SECURITIES, Securities Transferred and Securities Pledged (Details) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2022 USD ($) Security	Dec. 31, 2021 USD ($) Security
SECURITIES [Abstract]
Holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders' equity \| Security	0	0
Carrying value of securities pledged to collateralize public deposits and for other purposes \| $	$ 479.2	$ 474.5

SECURITIES, Securities with Unrealized Losses, Available for Sale (Details) $ in Thousands	Mar. 31, 2022 USD ($) Security	Dec. 31, 2021 USD ($)
Available for sale, Fair Value [Abstract]
Less than 12 months	$ 573,677	$ 185,597
12 months or more	78,617	64,764
Total	652,294	250,361
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	24,885	1,914
12 months or more	10,186	2,917
Total	$ 35,071	4,831
Number of securities with an unrealized loss \| Security	130
U.S. Government and Agencies [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	$ 0	0
12 months or more	0	0
Total	0	0
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	0	0
12 months or more	0	0
Total	0	0
State and Municipal [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	231,142	21,255
12 months or more	4,323	0
Total	235,465	21,255
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	10,099	86
12 months or more	434	0
Total	10,533	86
Mortgage-backed Securities [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	318,090	56,398
12 months or more	74,294	64,764
Total	392,384	121,162
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	14,524	1,197
12 months or more	9,752	2,917
Total	24,276	4,114
Collateralized Mortgage Obligations [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	0	106,320
12 months or more	0	0
Total	0	106,320
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	0	413
12 months or more	0	0
Total	0	413
Asset-backed and Other Amortizing Securities [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	22,964	1,624
12 months or more	0	0
Total	22,964	1,624
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	243	218
12 months or more	0	0
Total	243	218
Other Securities [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	1,481	0
12 months or more	0	0
Total	1,481	0
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	19	0
12 months or more	0	0
Total	$ 19	$ 0

LOANS HELD FOR INVESTMENT, Summary of Loans by Category (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) Category	Dec. 31, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Summary of Loans by Category [Abstract]
Loans, gross	$ 2,453,631	$ 2,437,577
Allowance for loan losses	(39,649)	(42,098)	$ (45,019)	$ (45,553)
Loans held for investment, net	2,413,982	2,395,479
Commercial Real Estate [Member]
Summary of Loans by Category [Abstract]
Loans, gross	771,490	755,444
Allowance for loan losses	$ (14,621)	(17,245)	(19,020)	(18,962)
Commercial [Member]
Summary of Loans by Category [Abstract]
Number of sub-categories of loans \| Category	2
Commercial [Member] \| Specialized [Member]
Summary of Loans by Category [Abstract]
Loans, gross	$ 350,143	378,725
Allowance for loan losses	(3,275)	(4,363)	(5,458)	(5,760)
Commercial [Member] \| General [Member]
Summary of Loans by Category [Abstract]
Loans, gross	475,593	460,024
Allowance for loan losses	(9,940)	(8,466)	(8,979)	(9,227)
Consumer [Member] \| 1-4 Family Residential [Member]
Summary of Loans by Category [Abstract]
Loans, gross	378,361	387,690
Allowance for loan losses	(4,931)	(5,268)	(4,890)	(4,646)
Consumer [Member] \| Auto Loans [Member]
Summary of Loans by Category [Abstract]
Loans, gross	255,703	240,719
Allowance for loan losses	(3,681)	(3,653)	(3,891)	(4,226)
Consumer [Member] \| Other Consumer [Member]
Summary of Loans by Category [Abstract]
Loans, gross	73,245	68,113
Allowance for loan losses	(1,384)	(1,357)	(1,480)	(1,671)
Construction [Member]
Summary of Loans by Category [Abstract]
Loans, gross	149,096	146,862
Allowance for loan losses	$ (1,817)	$ (1,746)	$ (1,301)	$ (1,061)

LOANS HELD FOR INVESTMENT, Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
LOANS HELD FOR INVESTMENT [Abstract]
Ratio of allowance for loan losses to loans held for investment	1.62%		1.73%
Allowance for Loan Losses [Roll Forward]
Beginning Balance	$ 42,098	$ 45,553
Provision for loan losses	(2,085)	89
Charge-offs	(657)	(841)
Recoveries	293	218
Ending Balance	39,649	45,019
Commercial Real Estate [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	17,245	18,962
Provision for loan losses	(2,649)	58
Charge-offs	0	0
Recoveries	25	0
Ending Balance	14,621	19,020
Commercial [Member] \| Specialized [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	4,363	5,760
Provision for loan losses	(1,083)	(378)
Charge-offs	(39)	0
Recoveries	34	76
Ending Balance	3,275	5,458
Commercial [Member] \| General [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	8,466	9,227
Provision for loan losses	1,659	52
Charge-offs	(307)	(344)
Recoveries	122	44
Ending Balance	9,940	8,979
Consumer [Member] \| 1-4 Family Residential [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	5,268	4,646
Provision for loan losses	(298)	295
Charge-offs	(40)	(52)
Recoveries	1	1
Ending Balance	4,931	4,890
Consumer [Member] \| Auto Loans [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	3,653	4,226
Provision for loan losses	68	(180)
Charge-offs	(86)	(188)
Recoveries	46	33
Ending Balance	3,681	3,891
Consumer [Member] \| Other Consumer [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	1,357	1,671
Provision for loan losses	147	4
Charge-offs	(185)	(257)
Recoveries	65	62
Ending Balance	1,384	1,480
Construction [Member]
Allowance for Loan Losses [Roll Forward]
Beginning Balance	1,746	1,061
Provision for loan losses	71	238
Charge-offs	0	0
Recoveries	0	2
Ending Balance	$ 1,817	$ 1,301

LOANS HELD FOR INVESTMENT, Investment in loans Disaggregated Based on Method of Evaluating Impairment (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Recorded Investment [Abstract]
Individually Evaluated	$ 8,006	$ 7,771
Collectively Evaluated	2,445,625	2,429,806
Allowance for Loan Losses [Abstract]
Individually Evaluated	1,191	1,344
Collectively Evaluated	38,458	40,754
Commercial Real Estate [Member]
Recorded Investment [Abstract]
Individually Evaluated	1,063	1,101
Collectively Evaluated	770,427	754,343
Allowance for Loan Losses [Abstract]
Individually Evaluated	546	584
Collectively Evaluated	14,075	16,661
Commercial [Member] \| Specialized [Member]
Recorded Investment [Abstract]
Individually Evaluated	0	0
Collectively Evaluated	350,143	378,725
Allowance for Loan Losses [Abstract]
Individually Evaluated	0	0
Collectively Evaluated	3,275	4,363
Commercial [Member] \| General [Member]
Recorded Investment [Abstract]
Individually Evaluated	4,941	5,078
Collectively Evaluated	470,652	454,946
Allowance for Loan Losses [Abstract]
Individually Evaluated	479	585
Collectively Evaluated	9,461	7,881
Consumer [Member] \| 1-4 Family Residential [Member]
Recorded Investment [Abstract]
Individually Evaluated	2,002	1,592
Collectively Evaluated	376,359	386,098
Allowance for Loan Losses [Abstract]
Individually Evaluated	166	175
Collectively Evaluated	4,765	5,093
Consumer [Member] \| Auto Loans [Member]
Recorded Investment [Abstract]
Individually Evaluated	0	0
Collectively Evaluated	255,703	240,719
Allowance for Loan Losses [Abstract]
Individually Evaluated	0	0
Collectively Evaluated	3,681	3,653
Consumer [Member] \| Other Consumer [Member]
Recorded Investment [Abstract]
Individually Evaluated	0	0
Collectively Evaluated	73,245	68,113
Allowance for Loan Losses [Abstract]
Individually Evaluated	0	0
Collectively Evaluated	1,384	1,357
Construction [Member]
Recorded Investment [Abstract]
Individually Evaluated	0	0
Collectively Evaluated	149,096	146,862
Allowance for Loan Losses [Abstract]
Individually Evaluated	0	0
Collectively Evaluated	$ 1,817	$ 1,746

LOANS HELD FOR INVESTMENT, Impaired Loan Information (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	$ 8,006	$ 7,771
Recorded Investment [Abstract]
Recorded Investment With No Allowance	2,410	2,023
Recorded Investment With Allowance	5,596	5,748
Total Recorded Investment	8,006	7,771
Related Allowance	1,191	1,344
Average Recorded Investment	9,202	10,396
Minimum [Member]
Recorded Investment [Abstract]
Threshold balance of loan to be specifically reviewed for impairment	250
Commercial Real Estate [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	1,063	1,101
Recorded Investment [Abstract]
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	1,063	1,101
Total Recorded Investment	1,063	1,101
Related Allowance	546	584
Average Recorded Investment	2,375	3,687
Commercial [Member] \| Specialized [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	0	0
Recorded Investment [Abstract]
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Commercial [Member] \| General [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	4,941	5,078
Recorded Investment [Abstract]
Recorded Investment With No Allowance	1,112	1,143
Recorded Investment With Allowance	3,829	3,935
Total Recorded Investment	4,941	5,078
Related Allowance	479	585
Average Recorded Investment	4,897	4,852
Consumer [Member] \| 1-4 Family Residential [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	2,002	1,592
Recorded Investment [Abstract]
Recorded Investment With No Allowance	1,298	880
Recorded Investment With Allowance	704	712
Total Recorded Investment	2,002	1,592
Related Allowance	166	175
Average Recorded Investment	1,930	1,857
Consumer [Member] \| Auto Loans [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	0	0
Recorded Investment [Abstract]
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Consumer [Member] \| Other Consumer [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	0	0
Recorded Investment [Abstract]
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Construction [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	0	0
Recorded Investment [Abstract]
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	$ 0	$ 0

LOANS HELD FOR INVESTMENT, Age Analysis on Accruing Past-due Loans and Nonaccrual Loans (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) Point	Dec. 31, 2021 USD ($)
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	$ 2,453,631	$ 2,437,577
Nonaccrual	$ 9,548	9,518
Number of points on a grading scale for loans \| Point	13
30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	$ 8,665	8,993
90 Days or More Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	2,593	1,080
Commercial Real Estate [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	771,490	755,444
Nonaccrual	1,063	1,101
Commercial Real Estate [Member] \| 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	58	393
Commercial Real Estate [Member] \| 90 Days or More Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	1,302	45
Commercial [Member] \| Specialized [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	350,143	378,725
Nonaccrual	122	156
Commercial [Member] \| Specialized [Member] \| 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	111	265
Commercial [Member] \| Specialized [Member] \| 90 Days or More Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	82	20
Commercial [Member] \| General [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	475,593	460,024
Nonaccrual	4,994	5,236
Commercial [Member] \| General [Member] \| 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	1,729	4,032
Commercial [Member] \| General [Member] \| 90 Days or More Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	96	97
Consumer [Member] \| 1-4 Family Residential [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	378,361	387,690
Nonaccrual	2,914	2,815
Consumer [Member] \| 1-4 Family Residential [Member] \| 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	4,127	2,496
Consumer [Member] \| 1-4 Family Residential [Member] \| 90 Days or More Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	944	903
Consumer [Member] \| Auto Loans [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	255,703	240,719
Nonaccrual	0	0
Consumer [Member] \| Auto Loans [Member] \| 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	326	332
Consumer [Member] \| Auto Loans [Member] \| 90 Days or More Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	31	0
Consumer [Member] \| Other Consumer [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	73,245	68,113
Nonaccrual	43	44
Consumer [Member] \| Other Consumer [Member] \| 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	1,128	538
Consumer [Member] \| Other Consumer [Member] \| 90 Days or More Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	124	15
Construction [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	149,096	146,862
Nonaccrual	412	166
Construction [Member] \| 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	1,186	937
Construction [Member] \| 90 Days or More Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Loans	$ 14	$ 0

LOANS HELD FOR INVESTMENT, Summary of Internal Classifications of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Loans by Internal Classifications [Abstract]
Loans	$ 2,453,631	$ 2,437,577
Pass [Member]
Loans by Internal Classifications [Abstract]
Loans	2,376,192	2,371,284
Special Mention [Member]
Loans by Internal Classifications [Abstract]
Loans	1,662	1,676
Substandard [Member]
Loans by Internal Classifications [Abstract]
Loans	75,777	64,617
Doubtful [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Commercial Real Estate [Member]
Loans by Internal Classifications [Abstract]
Loans	771,490	755,444
Commercial Real Estate [Member] \| Pass [Member]
Loans by Internal Classifications [Abstract]
Loans	731,097	713,852
Commercial Real Estate [Member] \| Special Mention [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Commercial Real Estate [Member] \| Substandard [Member]
Loans by Internal Classifications [Abstract]
Loans	40,393	41,592
Commercial Real Estate [Member] \| Doubtful [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Commercial [Member] \| Specialized [Member]
Loans by Internal Classifications [Abstract]
Loans	350,143	378,725
Commercial [Member] \| Specialized [Member] \| Pass [Member]
Loans by Internal Classifications [Abstract]
Loans	348,785	372,797
Commercial [Member] \| Specialized [Member] \| Special Mention [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Commercial [Member] \| Specialized [Member] \| Substandard [Member]
Loans by Internal Classifications [Abstract]
Loans	1,358	5,928
Commercial [Member] \| Specialized [Member] \| Doubtful [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Commercial [Member] \| General [Member]
Loans by Internal Classifications [Abstract]
Loans	475,593	460,024
Commercial [Member] \| General [Member] \| Pass [Member]
Loans by Internal Classifications [Abstract]
Loans	450,144	450,790
Commercial [Member] \| General [Member] \| Special Mention [Member]
Loans by Internal Classifications [Abstract]
Loans	1,662	1,676
Commercial [Member] \| General [Member] \| Substandard [Member]
Loans by Internal Classifications [Abstract]
Loans	23,787	7,558
Commercial [Member] \| General [Member] \| Doubtful [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Consumer [Member] \| 1-4 Family Residential [Member]
Loans by Internal Classifications [Abstract]
Loans	378,361	387,690
Consumer [Member] \| 1-4 Family Residential [Member] \| Pass [Member]
Loans by Internal Classifications [Abstract]
Loans	369,181	379,458
Consumer [Member] \| 1-4 Family Residential [Member] \| Special Mention [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Consumer [Member] \| 1-4 Family Residential [Member] \| Substandard [Member]
Loans by Internal Classifications [Abstract]
Loans	9,180	8,232
Consumer [Member] \| 1-4 Family Residential [Member] \| Doubtful [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Consumer [Member] \| Auto Loans [Member]
Loans by Internal Classifications [Abstract]
Loans	255,703	240,719
Consumer [Member] \| Auto Loans [Member] \| Pass [Member]
Loans by Internal Classifications [Abstract]
Loans	255,518	239,869
Consumer [Member] \| Auto Loans [Member] \| Special Mention [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Consumer [Member] \| Auto Loans [Member] \| Substandard [Member]
Loans by Internal Classifications [Abstract]
Loans	185	850
Consumer [Member] \| Auto Loans [Member] \| Doubtful [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Consumer [Member] \| Other Consumer [Member]
Loans by Internal Classifications [Abstract]
Loans	73,245	68,113
Consumer [Member] \| Other Consumer [Member] \| Pass [Member]
Loans by Internal Classifications [Abstract]
Loans	73,049	67,822
Consumer [Member] \| Other Consumer [Member] \| Special Mention [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Consumer [Member] \| Other Consumer [Member] \| Substandard [Member]
Loans by Internal Classifications [Abstract]
Loans	196	291
Consumer [Member] \| Other Consumer [Member] \| Doubtful [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Construction [Member]
Loans by Internal Classifications [Abstract]
Loans	149,096	146,862
Construction [Member] \| Pass [Member]
Loans by Internal Classifications [Abstract]
Loans	148,418	146,696
Construction [Member] \| Special Mention [Member]
Loans by Internal Classifications [Abstract]
Loans	0	0
Construction [Member] \| Substandard [Member]
Loans by Internal Classifications [Abstract]
Loans	678	166
Construction [Member] \| Doubtful [Member]
Loans by Internal Classifications [Abstract]
Loans	$ 0	$ 0

LOANS HELD FOR INVESTMENT, COVID-19 Related Deferral and Modification (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022 USD ($) Loan	Dec. 31, 2021 USD ($) Loan
CARES Act [Abstract]
TDRs	$ 0	$ 0
Covid-19 [Member]
CARES Act [Abstract]
Number of outstanding loans subject to deferral and modification agreements \| Loan	1	3
Amount of outstanding loans subject to deferral and modification agreements	$ 6,000	$ 15,900
Percentage of loans modified under CARES Act		0.65%

GOODWILL AND INTANGIBLES (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
GOODWILL AND INTANGIBLES (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Goodwill [Abstract]
Goodwill	$ 19,508	$ 19,508
Amortized Intangible Assets [Abstract]
Other intangible assets, net	5,503	5,895
Core Deposit Intangible [Member]
Amortized Intangible Assets [Abstract]
Other intangible assets, gross	6,679	6,679
Less: Accumulated amortization	(2,712)	(2,469)
Other intangible assets, net	3,967	4,210
Other Intangibles [Member]
Amortized Intangible Assets [Abstract]
Other intangible assets, gross	2,972	2,972
Arising from business combinations	0	0
Less: Accumulated amortization	(1,436)	(1,287)
Other intangible assets, net	$ 1,536	$ 1,685

MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Mortgage Servicing Rights Asset [Roll Forward]
Beginning balance	$ 19,700	$ 9,049	$ 9,049
Additions	1,250	3,222
Valuation adjustment	4,475	1,287
Ending balance	25,425	$ 13,558	19,700
Mortgage Servicing Rights Other Information [Abstract]
Mortgage loans serviced for others	$ 2,028,339		$ 1,953,095
Mortgage servicing rights asset as a percentage of serviced mortgage loans	1.25%		1.01%
Key Assumptions Used in Measuring Fair Value of Mortgage Servicing Rights [Abstract]
Weighted average constant prepayment rate	8.48%		12.35%
Weighted average discount rate	8.63%		9.14%
Weighted average life in years	7 years 5 months 26 days		6 years 10 days

BORROWING ARRANGEMENTS, Subordinated Debt Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021	Sep. 29, 2020	Dec. 31, 2018
Subordinated Debt Securities [Abstract]
Subordinated debt securities	$ 75,821	$ 75,775
Subordinated Debt Securities Issued in December 2018 [Member]
Subordinated Debt Securities [Abstract]
Debt instrument, face amount				$ 26,500
Subordinated Debt Securities Issued in December 2018 [Member] \| Debt Securities One [Member]
Subordinated Debt Securities [Abstract]
Debt instrument, face amount				$ 12,400
Debt instrument, maturity date	Dec. 31, 2028
Debt instrument, weighted average interest rate				5.74%
Debt instrument, period of fixed interest rate	5 years
Debt instrument, variable interest rate, floor	4.50%
Debt instrument, variable interest rate, ceiling	7.50%
Subordinated Debt Securities Issued in December 2018 [Member] \| Debt Securities One [Member] \| Maximum [Member]
Subordinated Debt Securities [Abstract]
Remaining maturity period during which debt can be called	5 years
Subordinated Debt Securities Issued in December 2018 [Member] \| Debt Securities Two [Member]
Subordinated Debt Securities [Abstract]
Debt instrument, face amount				$ 14,100
Debt instrument, maturity date	Dec. 31, 2030
Debt instrument, weighted average interest rate				6.41%
Debt instrument, period of fixed interest rate	7 years
Debt instrument, variable interest rate, floor	4.50%
Debt instrument, variable interest rate, ceiling	7.50%
Subordinated Debt Securities Issued in December 2018 [Member] \| Debt Securities Two [Member] \| Maximum [Member]
Subordinated Debt Securities [Abstract]
Remaining maturity period during which debt can be called	5 years
Subordinated Debt Securities Issued in September 29, 2020 [Member]
Subordinated Debt Securities [Abstract]
Debt instrument, face amount			$ 50,000
Debt issuance cost			$ 926
Debt instrument, maturity date	Sep. 30, 2030
Debt instrument, weighted average interest rate			4.50%
Debt instrument, period of fixed interest rate	5 years
Subordinated Debt Securities Issued in September 29, 2020 [Member] \| SOFR [Member]
Subordinated Debt Securities [Abstract]
Term of variable rate	3 months
Basis spread on variable rate	4.38%
Subordinated Debt Securities Issued in September 29, 2020 [Member] \| Maximum [Member]
Subordinated Debt Securities [Abstract]
Remaining maturity period during which debt can be called	5 years
Subordinated Debt [Member]
Subordinated Debt Securities [Abstract]
Debt instrument, face amount	$ 76,500	76,500
Debt issuance cost	651	697
Subordinated debt securities	$ 75,800	$ 75,800

BORROWING ARRANGEMENTS, Notes Payable and Other Borrowings (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Federal Home Loan Bank Advance [Member] \| Federal Home Loan Bank of Dallas [Member] \| City Bank [Member]
Detail of Advances from FHLB [Abstract]
Original amount of advances	$ 0	$ 0

STOCK-BASED COMPENSATION, Equity Incentive Plan (Details) - 2019 Equity Incentive Plan [Member]	Mar. 06, 2019 shares
Equity Incentive Plan [Abstract]
Maximum aggregate number of shares of common stock that may be issued (in shares)	2,300,000
Maximum [Member]
Equity Incentive Plan [Abstract]
Annual increase in number of shares that may be issued	3.00%

STOCK-BASED COMPENSATION, Stock Options Activity (Details) - 2019 Equity Incentive Plan [Member] - Stock Option [Member] $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) $ / shares shares
Number of Shares [Roll Forward]
Outstanding at beginning of year (in shares) \| shares	1,602,028
Granted (in shares) \| shares	45,203
Exercised (in shares) \| shares	(7,413)
Forfeited (in shares) \| shares	(5,886)
Expired (in shares) \| shares	0
Balance at end of period (in shares) \| shares	1,633,932
Exercisable at end of period (in shares) \| shares	1,191,915
Vested at end of period (in shares) \| shares	1,191,915
Weighted-Average Exercise Price [Abstract]
Outstanding at beginning of year (in dollars per share) \| $ / shares	$ 15.42
Granted (in dollars per share) \| $ / shares	29.40
Exercised (in dollars per share) \| $ / shares	18.58
Forfeited (in dollars per share) \| $ / shares	19.22
Expired (in dollars per share) \| $ / shares	0
Balance at end of period (in dollars per share) \| $ / shares	15.78
Exercisable at end of period (in dollars per share) \| $ / shares	14.05
Vested at end of period (in dollars per share) \| $ / shares	$ 14.05
Weighted Average Remaining Contractual Life in Years [Abstract]
Options Outstanding	5 years 10 months 9 days
Exercisable at end of period	5 years 3 months 14 days
Vested at end of period	5 years 3 months 14 days
Aggregate Intrinsic Value [Abstract]
Outstanding at beginning of year \| $	$ 17,883
Granted \| $	0
Exercised \| $	(59)
Forfeited \| $	(43)
Expired \| $	0
Balance at end of period \| $	17,781
Exercisable at end of period \| $	14,941
Vested at end of period \| $	$ 14,941

STOCK-BASED COMPENSATION, Fair Value Assumptions (Details) - Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract]
Expected dividend yield	1.30%	1.00%
Weighted average grant date fair value (in dollars per share)	$ 10.54	$ 7.07
Minimum [Member]
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract]
Expected volatility	40.20%	41.20%
Expected term	6 years 1 month 6 days	6 years 1 month 6 days
Risk-free interest rate	1.56%	0.52%
Maximum [Member]
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract]
Expected volatility	40.29%	41.32%
Expected term	6 years 3 months 18 days	6 years 2 months 12 days
Risk-free interest rate	1.95%	0.83%
2019 Equity Incentive Plan [Member]
Equity Incentive Plan [Abstract]
Intrinsic value of options exercised	$ 74	$ 9

STOCK-BASED COMPENSATION, Restricted Stock Awards and Units (Details) - Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Number of Shares [Roll Forward]
Outstanding at beginning of year (in shares)	42,767
Granted (in shares)	73,359
Vested (in shares)	(23,930)
Forfeited (in shares)	(2,888)
Balance at ending of period (in shares)	89,308
Weighted-Average Exercise Price [Abstract]
Outstanding at beginning of year (in dollars per share)	$ 19.35
Granted (in dollars per share)	28.85
Vested (in dollars per share)	19.38
Forfeited (in dollars per share)	28.03
Balance at ending of period (in dollars per share)	$ 26.87
Unrecognized compensation cost	$ 4,600
Weighted average remaining period, recognition of compensation cost	1 year 8 months 19 days
Fair value of restricted stock units vested	$ 464	$ 489
Minimum [Member]
Weighted-Average Exercise Price [Abstract]
Award vesting period	1 year
Maximum [Member]
Weighted-Average Exercise Price [Abstract]
Award vesting period	4 years

OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
FHLB Letters of Credit [Abstract]
Letters of credit outstanding balance	$ 0	$ 0
Commitments to Grant Loans and Unfunded Commitments Under Lines of Credit [Member]
Financial instruments with off-balance-sheet risk [Abstract]
Financial instruments whose contract amounts represent credit risk outstanding	620,871	542,338
Standby Letters of Credit [Member]
Financial instruments with off-balance-sheet risk [Abstract]
Financial instruments whose contract amounts represent credit risk outstanding	$ 13,208	$ 12,418

CAPITAL AND REGULATORY MATTERS (Details) $ in Thousands	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Consolidated [Member]
Total Capital to Risk Weighted Assets [Abstract]
Actual, Amount	$ 535,998	$ 524,836
Actual, Ratio	0.1822	0.1840
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 308,961	$ 299,521
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.1050	0.1050
Tier I Capital to Risk Weighted Assets [Abstract]
Actual, Amount	$ 423,358	$ 413,322
Actual, Ratio	0.1439	0.1449
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 250,111	$ 242,469
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.0850	0.0850
Common Equity Tier 1 to Risk Weighted Assets [Abstract]
Actual, Amount	$ 378,358	$ 368,322
Actual, Ratio	0.1286	0.1291
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 205,974	$ 199,681
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.0700	0.0700
Tier I Capital to Average Assets [Abstract]
Actual, Amount	$ 423,358	$ 413,322
Actual, Ratio	0.1078	0.1077
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 158,049	$ 154,592
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.0400	0.0400
City Bank [Member]
Total Capital to Risk Weighted Assets [Abstract]
Actual, Amount	$ 431,140	$ 425,748
Actual, Ratio	0.1466	0.1493
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 308,882	$ 299,465
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.1050	0.1050
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 294,173	$ 285,205
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.1000	0.1000
Tier I Capital to Risk Weighted Assets [Abstract]
Actual, Amount	$ 394,331	$ 390,015
Actual, Ratio	0.1340	0.1367
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 250,047	$ 242,424
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.0850	0.0850
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 235,338	$ 228,164
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.0800	0.0800
Common Equity Tier 1 to Risk Weighted Assets [Abstract]
Actual, Amount	$ 394,331	$ 390,015
Actual, Ratio	0.1340	0.1367
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 205,921	$ 199,644
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.0700	0.0700
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 191,212	$ 185,383
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.0650	0.0650
Tier I Capital to Average Assets [Abstract]
Actual, Amount	$ 394,331	$ 390,015
Actual, Ratio	0.1005	0.1016
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 157,958	$ 154,503
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.0400	0.0400
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 196,196	$ 191,859
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.0500	0.0500

DERIVATIVES, Fair Value Hedges in Consolidated Balance Sheets (Details) - Fair Value Hedging [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Interest Rate Swaps [Member] \| Other Liabilities [Member]
Fair value hedges included in Consolidated Balance Sheets [Abstract]
Derivative liability, notional amount	$ 1,019		$ 9,775
Derivative liability, fair value	39		429
Interest Rate Swaps [Member] \| Other Assets [Member]
Fair value hedges included in Consolidated Balance Sheets [Abstract]
Derivative asset, notional amount	8,650		0
Derivative asset, fair value	68		0
Interest Rate Swaps [Member] \| Interest Income [Member]
Changes in fair value hedges included in Consolidated Statements of Comprehensive Income [Abstract]
Interest rate swaps - fair value hedges	(136)	$ (175)
Interest Rate Swaps [Member] \| Other Noninterest Expense [Member]
Changes in fair value hedges included in Consolidated Statements of Comprehensive Income [Abstract]
Fair value hedge ineffectiveness	149	$ 127
Cash Flow Swaps [Member] \| Other Liabilities [Member]
Fair value hedges included in Consolidated Balance Sheets [Abstract]
Derivative liability, notional amount	0		0
Derivative liability, fair value	0		0
Cash Flow Swaps [Member] \| Other Assets [Member]
Fair value hedges included in Consolidated Balance Sheets [Abstract]
Derivative asset, notional amount	123,760		123,760
Derivative asset, fair value	$ 12,435		$ 5,686

DERIVATIVES, Mortgage Banking Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Other Assets [Member] \| Interest Rate Swap [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Cash collateral advanced to offset liability position	$ 1,100
Other Liabilities [Member] \| Interest Rate Swap [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Cash collateral received to offset asset derivative positions	12,300
Mortgage Forward Contracts [Member] \| Other Assets [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Cash collateral advanced to offset liability position	440
Mortgage Banking [Member] \| Other Assets [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Derivative asset, notional amount	96,387		$ 104,437
Derivative asset, fair value	2,699		1,642
Mortgage Banking [Member] \| Other Liabilities [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Derivative liability, notional amount	83,384		93,120
Derivative liability, fair value	1,199		106
Mortgage Banking [Member] \| Forward Contracts [Member] \| Other Assets [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Derivative asset, notional amount	0		0
Derivative asset, fair value	0		0
Mortgage Banking [Member] \| Forward Contracts [Member] \| Other Liabilities [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Derivative liability, notional amount	83,384		93,120
Derivative liability, fair value	1,199		106
Mortgage Banking [Member] \| Forward Contracts [Member] \| Net Gain (Loss) on Sales of Loans [Member]
Derivative instruments impact on results of operations [Abstract]
Gain (loss) on sale of derivative instruments	(1,093)	$ (101)
Mortgage Banking [Member] \| Interest Rate Lock Commitments [Member] \| Other Assets [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Derivative asset, notional amount	96,387		104,437
Derivative asset, fair value	2,699		1,642
Mortgage Banking [Member] \| Interest Rate Lock Commitments [Member] \| Other Liabilities [Member]
Notional amount and fair value of mortgage banking derivatives in Consolidated Balance Sheets [Abstract]
Derivative liability, notional amount	0		0
Derivative liability, fair value	0		$ 0
Mortgage Banking [Member] \| Interest Rate Lock Commitments [Member] \| Net Gain (Loss) on Sales of Loans [Member]
Derivative instruments impact on results of operations [Abstract]
Gain (loss) on sale of derivative instruments	$ 1,057	$ 1,089

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Basic [Abstract]
Net income	$ 14,278	$ 15,160
Weighted average common shares outstanding - basic (in shares)	17,716,136	18,069,186
Effect of dilutive securities [Abstract]
Stock-based compensation awards (in shares)	676,261	441,934
Weighted average common shares outstanding - diluted (in shares)	18,392,397	18,511,120
Basic earnings per share (in dollars per share)	$ 0.81	$ 0.84
Diluted earnings per share (in dollars per share)	$ 0.78	$ 0.82

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Financial results by reportable segments [Abstract]
Net interest income	$ 29,947	$ 29,544
Provision for loan losses	2,085	(89)
Noninterest income	23,697	26,500
Noninterest expense	(37,924)	(37,057)
Income before income taxes	17,805	18,898
Income tax (expense) benefit	(3,527)	(3,738)
Net income (loss)	14,278	15,160
Banking [Member] \| Operating Segments [Member]
Financial results by reportable segments [Abstract]
Net interest income	29,947	29,544
Provision for loan losses	2,085	(89)
Noninterest income	22,183	25,417
Noninterest expense	(36,255)	(35,955)
Income before income taxes	17,960	18,917
Income tax (expense) benefit	(3,559)	(3,741)
Net income (loss)	14,401	15,176
Insurance [Member] \| Operating Segments [Member]
Financial results by reportable segments [Abstract]
Net interest income	0	0
Provision for loan losses	0	0
Noninterest income	1,514	1,083
Noninterest expense	(1,669)	(1,102)
Income before income taxes	(155)	(19)
Income tax (expense) benefit	32	3
Net income (loss)	$ (123)	$ (16)

FAIR VALUE DISCLOSURES, Assets (Liabilities) Measured at Fair Value on Recurring and Non-Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Securities available for sale [Abstract]
Securities available for sale	$ 793,404	$ 724,504
Mortgage servicing rights	25,425	19,700	$ 13,558	$ 9,049
U.S. Government and Agencies [Member]
Securities available for sale [Abstract]
Securities available for sale	0	0
State and Municipal [Member]
Securities available for sale [Abstract]
Securities available for sale	253,008	275,672
Mortgage-Backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	398,433	303,089
Collateralized Mortgage Obligations [Member]
Securities available for sale [Abstract]
Securities available for sale	105,019	106,320
Other Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	12,409	12,487
Recurring [Member]
Securities available for sale [Abstract]
Asset-backed and other amortizing securities	24,535	26,936
Loans held for sale (mandatory)	22,323	47,593
Mortgage servicing rights	25,425	19,700
Asset derivatives	15,202	7,328
Liability derivatives	(1,238)	(535)
Recurring [Member] \| U.S. Government and Agencies [Member]
Securities available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] \| State and Municipal [Member]
Securities available for sale [Abstract]
Securities available for sale	253,008	275,672
Recurring [Member] \| Mortgage-Backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	398,433	303,089
Recurring [Member] \| Collateralized Mortgage Obligations [Member]
Securities available for sale [Abstract]
Securities available for sale	105,019	106,320
Recurring [Member] \| Other Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	12,409	12,487
Recurring [Member] \| Level 1 [Member]
Securities available for sale [Abstract]
Asset-backed and other amortizing securities	0	0
Loans held for sale (mandatory)	0	0
Mortgage servicing rights	0	0
Asset derivatives	0	0
Liability derivatives	0	0
Recurring [Member] \| Level 1 [Member] \| U.S. Government and Agencies [Member]
Securities available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] \| Level 1 [Member] \| State and Municipal [Member]
Securities available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] \| Level 1 [Member] \| Mortgage-Backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] \| Level 1 [Member] \| Collateralized Mortgage Obligations [Member]
Securities available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] \| Level 1 [Member] \| Other Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] \| Level 2 [Member]
Securities available for sale [Abstract]
Asset-backed and other amortizing securities	24,535	26,936
Loans held for sale (mandatory)	22,323	47,593
Mortgage servicing rights	0	0
Asset derivatives	15,202	7,328
Liability derivatives	(1,238)	(535)
Recurring [Member] \| Level 2 [Member] \| U.S. Government and Agencies [Member]
Securities available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] \| Level 2 [Member] \| State and Municipal [Member]
Securities available for sale [Abstract]
Securities available for sale	253,008	275,672
Recurring [Member] \| Level 2 [Member] \| Mortgage-Backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	398,433	303,089
Recurring [Member] \| Level 2 [Member] \| Collateralized Mortgage Obligations [Member]
Securities available for sale [Abstract]
Securities available for sale	105,019	106,320
Recurring [Member] \| Level 2 [Member] \| Other Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	12,409	12,487
Recurring [Member] \| Level 3 [Member]
Securities available for sale [Abstract]
Asset-backed and other amortizing securities	0	0
Loans held for sale (mandatory)	0	0
Mortgage servicing rights	25,425	19,700
Asset derivatives	0	0
Liability derivatives	0	0
Recurring [Member] \| Level 3 [Member] \| U.S. Government and Agencies [Member]
Securities available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] \| Level 3 [Member] \| State and Municipal [Member]
Securities available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] \| Level 3 [Member] \| Mortgage-Backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] \| Level 3 [Member] \| Collateralized Mortgage Obligations [Member]
Securities available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] \| Level 3 [Member] \| Other Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	0	0
Non-recurring [Member]
Assets measured at fair value on a non-recurring basis [Abstract]
Impaired loans	6,815	6,427
Non-recurring [Member] \| Level 1 [Member]
Assets measured at fair value on a non-recurring basis [Abstract]
Impaired loans	0	0
Non-recurring [Member] \| Level 2 [Member]
Assets measured at fair value on a non-recurring basis [Abstract]
Impaired loans	0	0
Non-recurring [Member] \| Level 3 [Member]
Assets measured at fair value on a non-recurring basis [Abstract]
Impaired loans	$ 6,815	$ 6,427

FAIR VALUE DISCLOSURES, Quantitative Information about Recurring and Non-Recurring Level 3 Fair Value Measurements (Details) $ in Thousands	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Mortgage servicing rights	$ 25,425	$ 19,700	$ 13,558	$ 9,049
Non-recurring [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans	6,815	6,427
Non-recurring [Member] \| Third Party Appraisals or Inspections [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans	$ 6,815	$ 6,427
Non-recurring [Member] \| Third Party Appraisals or Inspections [Member] \| Collateral Discounts and Selling Costs [Member] \| Minimum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans, discounts	0.20	0.20
Non-recurring [Member] \| Third Party Appraisals or Inspections [Member] \| Collateral Discounts and Selling Costs [Member] \| Maximum [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Impaired loans, discounts	1	1
Recurring [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Mortgage servicing rights	$ 25,425	$ 19,700
Recurring [Member] \| Discounted Cash Flows [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Mortgage servicing rights	$ 25,425	$ 19,700
Recurring [Member] \| Discounted Cash Flows [Member] \| Conditional Prepayment Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Mortgage servicing rights, discounts	0.0848	0.1235
Recurring [Member] \| Discounted Cash Flows [Member] \| Discount Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Mortgage servicing rights, discounts	0.0863	0.0914

FAIR VALUE DISCLOSURES, Estimated Fair Values, and Related Carrying Amounts (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Carrying Amount [Member]
Financial assets [Abstract]
Cash and cash equivalents	$ 528,612	$ 486,821
Loans held for investment, net	2,413,982	2,395,479
Loans held for sale (best efforts)	7,276	28,914
Accrued interest receivable	10,512	13,900
Financial liabilities [Abstract]
Deposits	3,450,157	3,341,222
Short-term borrowings		26,550
Accrued interest payable	952	1,914
Junior subordinated deferrable interest debentures	46,393	46,393
Subordinated debt securities	75,821	75,775
Fair Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	528,612	486,821
Loans held for investment, net	2,413,792	2,397,079
Loans held for sale (best efforts)	7,454	29,500
Accrued interest receivable	10,512	13,900
Financial liabilities [Abstract]
Deposits	3,450,510	3,343,888
Short-term borrowings		26,550
Accrued interest payable	952	1,914
Junior subordinated deferrable interest debentures	33,850	45,690
Subordinated debt securities	79,562	77,939
Level 1 [Member] \| Fair Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	528,612	486,821
Loans held for investment, net	0	0
Loans held for sale (best efforts)	0	0
Accrued interest receivable	0	0
Financial liabilities [Abstract]
Deposits	0	3,004,091
Short-term borrowings		26,550
Accrued interest payable	0	0
Junior subordinated deferrable interest debentures	0	0
Subordinated debt securities	0	0
Level 2 [Member] \| Fair Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	0	0
Loans held for investment, net	0	0
Loans held for sale (best efforts)	7,454	29,500
Accrued interest receivable	10,512	13,900
Financial liabilities [Abstract]
Deposits	3,450,510	339,797
Short-term borrowings		0
Accrued interest payable	952	1,914
Junior subordinated deferrable interest debentures	33,850	45,690
Subordinated debt securities	79,562	77,939
Level 3 [Member] \| Fair Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	0	0
Loans held for investment, net	2,413,792	2,397,079
Loans held for sale (best efforts)	0	0
Accrued interest receivable	0	0
Financial liabilities [Abstract]
Deposits	0	0
Short-term borrowings		0
Accrued interest payable	0	0
Junior subordinated deferrable interest debentures	0	0
Subordinated debt securities	$ 0	$ 0

SUBSEQUENT EVENTS (Details) - $ / shares		3 Months Ended
SUBSEQUENT EVENTS (Details) - $ / shares	Apr. 21, 2022	Mar. 31, 2022	Mar. 31, 2021
Dividends [Abstract]
Dividends declared per share (in dollars per share)		$ 0.11	$ 0.05
Subsequent Event [Member]
Dividends [Abstract]
Dividends declared date	Apr. 21, 2022
Dividends declared per share (in dollars per share)	$ 0.11
Dividends payable date	May 16, 2022
Dividends record date	May 02, 2022