0001140361-23-023519 | 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, 2023	May 05, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
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		17,063,394

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
ASSETS
Cash and due from banks	$ 51,186	$ 61,613
Interest-bearing deposits in banks	276,816	173,270
Cash and cash equivalents	328,002	234,883
Securities available for sale	698,579	701,711
Loans held for sale ($11,576 and $10,038 at fair value at March 31, 2023 and December 31, 2022, respectively)	20,448	30,403
Loans held for investment	2,788,640	2,748,081
Allowance for credit losses on loans	(39,560)	(39,288)
Loans held for investment, net	2,749,080	2,708,793
Accrued interest receivable	14,421	16,432
Premises and equipment, net	56,079	56,337
Bank-owned life insurance	73,474	73,174
Goodwill	19,508	19,508
Intangible assets, net	3,988	4,349
Mortgage servicing rights	25,795	27,474
Deferred tax asset, net	21,779	22,818
Other assets	46,896	48,181
Total assets	4,058,049	3,944,063
Deposits:
Noninterest-bearing	1,110,939	1,150,488
Interest-bearing	2,397,115	2,255,942
Total deposits	3,508,054	3,406,430
Accrued expenses and other liabilities	59,631	58,265
Subordinated debt	76,007	75,961
Junior subordinated deferrable interest debentures	46,393	46,393
Total liabilities	3,690,085	3,587,049
Stockholders' equity:
Common stock, $1.00 par value per share, 30,000,000 shares authorized; 17,062,572 and 17,027,197 issued and outstanding at March 31, 2023 and December 31, 2022, respectively	17,062	17,027
Additional paid-in capital	112,981	112,834
Retained earnings	298,300	292,261
Accumulated other comprehensive loss	(60,379)	(65,108)
Total stockholders' equity	367,964	357,014
Total liabilities and stockholders' equity	$ 4,058,049	$ 3,944,063

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
ASSETS
Loans held for sale, fair value	$ 11,576	$ 10,038
Stockholders' equity:
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, shares issued (in shares)	17,062,572	17,027,197
Common stock, shares outstanding (in shares)	17,062,572	17,027,197

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Interest income:
Loans, including fees	$ 39,597	$ 29,378
Securities:
Taxable	5,240	2,376
Non-taxable	1,116	1,144
Federal funds sold and interest-bearing deposits in banks	1,495	182
Total interest income	47,448	33,080
Interest expense:
Deposits	11,370	1,890
Notes payable & other borrowings	0	0
Subordinated debt	1,012	1,012
Junior subordinated deferrable interest debentures	751	231
Total interest expense	13,133	3,133
Net interest income	34,315	29,947
Provision for credit losses	1,010	(2,085)
Net interest income, after provision for credit losses	33,305	32,032
Noninterest income:
Service charges on deposit accounts	1,701	1,773
Income from insurance activities	1,411	1,570
Net gain on sales of loans	2,918	7,493
Bank card services and interchange fees	2,956	3,222
Other mortgage banking income (loss)	(633)	6,144
Investment commissions	389	546
Fiduciary fees	600	612
Other	1,349	2,337
Total noninterest income	10,691	23,697
Noninterest expense:
Salaries and employee benefits	19,254	22,703
Occupancy and equipment, net	3,832	3,737
Professional services	1,648	2,625
Marketing and development	936	720
IT and data services	864	1,053
Bank card expenses	1,352	1,323
Appraisal expenses	278	565
Other	4,197	5,198
Total noninterest expense	32,361	37,924
Income before income taxes	11,635	17,805
Income tax expense	2,391	3,527
Net income	$ 9,244	$ 14,278
Earnings per share:
Basic (in dollars per share)	$ 0.54	$ 0.81
Diluted (in dollars per share)	$ 0.53	$ 0.78
Net income	$ 9,244	$ 14,278
Other comprehensive income (loss):
Unrealized gains (losses) on securities available for sale	8,624	(44,877)
Less: Change in fair value on hedged state and municipal securities	(2,638)	6,899
Tax effect	(1,257)	7,975
Other comprehensive income (loss)	4,729	(30,003)
Comprehensive income (loss)	$ 13,973	$ (15,725)

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	Cumulative Effect, Period of Adoption, Adjustment [Member] Common Stock [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member] Additional Paid-in Capital [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member] Retained Earnings [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member] Accumulated Other Comprehensive Income (Loss) [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member]
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
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 income (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
Balance at Dec. 31, 2022	$ 17,027	112,834	292,261	(65,108)	$ 357,014
Balance (ASU 2016-13 [Member]) at Dec. 31, 2022						$ 0	$ 0	$ (997)	$ 0	$ (997)
Balance (in shares) at Dec. 31, 2022	17,027,197				17,027,197
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 0	0	9,244	0	$ 9,244
Cash dividends declared	0	0	(2,208)	0	(2,208)
Other comprehensive income (loss)	0	0	0	4,729	4,729
Exercise of employee stock options and vesting of restricted stock units, net of shares for cashless exercise and net of shares for taxes	$ 35	(378)	0	0	(343)
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)	35,375
Stock-based compensation	$ 0	525	0	0	525
Balance at Mar. 31, 2023	$ 17,062	$ 112,981	$ 298,300	$ (60,379)	$ 367,964
Balance (in shares) at Mar. 31, 2023	17,062,572				17,062,572

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract]
Cash dividends, common (in dollars per share)	$ 0.13	$ 0.11
Exercise of employee stock options, shares for cashless exercise (in shares)	13,573	4,824
Exercise of employee stock options, shares for taxes (in shares)	13,892	6,857

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net income	$ 9,244	$ 14,278
Adjustments to reconcile net income to net cash from operating activities:
Provision for credit losses	1,010	(2,085)
Depreciation and amortization	1,698	1,705
Accretion and amortization	991	1,063
Other gains, net	(79)	358
Net gain on sales of loans	(2,918)	(7,493)
Proceeds from sales of loans held for sale	101,266	288,280
Loans originated for sale	(88,664)	(235,129)
Deferred income tax expense	47	2,620
Earnings on bank-owned life insurance	(300)	(296)
Stock-based compensation	525	528
Change in valuation of mortgage servicing rights	1,950	(4,475)
Net change in:
Accrued interest receivable and other assets	609	1,995
Accrued expenses and other liabilities	(4)	9,267
Net cash provided by operating activities	25,375	70,616
Activity in securities available for sale:
Purchases	0	(132,412)
Maturities, prepayments, and calls	10,811	17,618
Loan originations and principal collections, net	(41,634)	(16,660)
Purchases of premises and equipment	(1,560)	(1,316)
Proceeds from sales of premises and equipment	642	39
Proceeds from sales of foreclosed assets	412	133
Net cash used in investing activities	(31,329)	(132,598)
Cash flows from financing activities:
Net change in deposits	101,624	108,935
Payments to tax authorities for stock-based compensation	(343)	(195)
Cash dividends paid on common stock	(2,208)	(1,950)
Payments to repurchase common stock	0	(3,017)
Net cash provided by financing activities	99,073	103,773
Net change in cash and cash equivalents	93,119	41,791
Beginning cash and cash equivalents	234,883	486,821
Ending cash and cash equivalents	328,002	528,612
Supplemental disclosures of cash flow information:
Interest paid on deposits and borrowed funds	13,215	3,553
Income taxes paid	0	0
Supplemental schedule of noncash activities:
Loans transferred to foreclosed assets	445	242
Additions to mortgage servicing rights	$ 271	$ 1,250

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2023

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 investment, trust, and mortgage services. The following were subsidiaries of SPFI as of March 31, 2023:

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 three months ended March 31, 2023 (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, 2022. 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 credit losses (“ACL”) 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, and fair values of financial instruments can also involve significant management estimates.

Accounting Changes – Updates to the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) are prescribed in Accounting Standards Updates (“ASUs”), which are not authoritative until incorporated into the ASC.

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 and held to maturity debt securities. The CECL model also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in sales type and direct financing leases recognized by a lessor in accordance with Topic 842 on leases. In addition, Topic 326 made changes to the accounting for securities available for sale. One such change is to require credit losses to be presented as an allowance rather than as a write-down on securities available for sale management does not intend to sell or believes that it is more likely than not they will be required to sell. The Company adopted the CECL model on January 1, 2023 using the modified retrospective approach, as a result, the Company recognized a one-time, after tax cumulative effect debit adjustment of $997 thousand to retained earnings, increased the ACL for loans by approximately $100 thousand and increased the ACL for off-balance sheet credit exposures by approximately $1.2 million. Results for reporting periods beginning after January 1, 2023 are presented under Topic 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP.

The Company made the following policy elections related to the adoption of the CECL model: (i) accrued interest will be written off against interest income when financial assets are placed into nonaccrual status. Therefore, accrued interest will be excluded from the amortized cost basis for purposes of calculating the ACL. Accrued interest receivable is presented in a separate line item in the Company’s Consolidated Balance Sheets. (ii) The fair value of collateral practical expedient has been elected on certain loans in determining the ACL, for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty.

The impact on the ACL resulting from the adoption of the CECL model is shown below.

(Dollars in thousands)	January 1, 2023
	Pre-Adoption		Impact of Adoption			Post-Adoption
Commercial real estate	$	13,029	$	827		$	13,856
Commercial – specialized		3,425		33			3,458
Commercial - general		9,215		(2,574	)		6,641
Consumer:
1-4 family residential		6,194		1,700			7,894
Auto loans		3,926		(332	)		3,594
Other consumer		1,376		(235	)		1,141
Construction		2,123		683			2,806

Total allowance for credit losses on loans	$	39,288	$	102		$	39,390

Allowance for credit losses for off-balance sheet exposures	$	580	$	1,160		$	1,740

ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates guidance for troubled debt restructurings by creditors and enhances disclosure requirements for certain loan modifications by creditors for borrowers experiencing financial distress. This ASU defines types of modifications as principal forgiveness, interest rate reduction, other than insignificant payment delays, or a term extension. In addition, the ASU requires disclosure of current-period gross charge-offs, by year of origination, in the vintage disclosure. The Company adopted the provisions of ASU 2022-02 as of January 1, 2023 on a prospective basis. The adoption of this amendment did not have a material impact on the Company’s consolidated financial statements.

In connection with the adoption of the CECL model, the Company revised certain accounting policies and implemented certain accounting policy elections.

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 carried at fair value with unrealized gains and losses reported as a component of other comprehensive income (loss), net of tax. 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. Gains and losses on sales are recorded on the trade date, are derived from the amortized cost of the security sold and are determined using the specific identification method. A security is placed on nonaccrual status if principal or interest has been in default for a period of 90 days or more, or if full payment of principal and interest is not expected. The Company has made a policy election to exclude accrued interest receivable from the amortized cost basis of AFS securities and report the accrued interest in accrued interest receivable in the Company’s Consolidated Balance Sheets. Interest accrued but not received for a security placed on nonaccrual status is reversed against interest income.

ACL (AFS Securities) – For AFS securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized costs basis is written down to fair value through income. For AFS securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income (loss). Changes in the ACL are recorded as provision for credit losses. Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest is excluded from the estimate of credit losses.

Loans – Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their amortized cost. Amortized cost is the outstanding unpaid principal balances, net of any unearned income, charge-offs, unamortized deferred fees and costs on originated loans, and unamortized premiums or discounts on purchased loans. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and report accrued interest separately from the related loan balance in accrued interest receivable on the Company’s Consolidated Balance Sheets. Accrued interest receivable is excluded from the estimate of credit losses. 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.

ACL (Loans) – The ACL is a valuation account established by management as an estimate to cover expected credit losses through a provision for credit losses charged to earnings. Credit losses on loans 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. Expected losses are calculated using comparable and quantifiable information from both internal and external sources about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Expected credit losses are estimated over the contractual term of the loans and adjusted for expected prepayments.

The ACL is evaluated on a quarterly basis by management. The Company applied a dual credit risk rating (“DCRR”) methodology that estimates each loan’s probability of default and loss given default to calculate the expected credit loss to non-analyzed loans at January 1 and March 31, 2023. The DCRR process quantifies the expected credit loss at the loan level for the entire loan portfolio. Loan grades are assigned by a customized scorecard that risk rates each loan based on multiple probability of default and loss given default elements to measure the credit risk of the loan portfolio. The ACL estimate incorporates the Company’s DCRR loan level risk rating methodology and the expected default rate frequency term structure to derive loan level life of loan estimates of credit losses for every loan in the portfolio. The estimated credit loss for each loan is adjusted based on its one-year through the cycle estimate of expected credit loss to a life of loan measurement that reflects current conditions and reasonable and supportable forecasts. The life of loan expected loss is determined using the contractual weighted average life of the loan adjusted for prepayments. Prepayment speeds are determined by grouping the loans into pools based on segments and risk rating. After the life of loan expected losses are determined, they are adjusted to reflect the Company’s reasonable and supportable economic forecast over a selected range of one to two years. The Company has developed regression models to project net charge-off rates based on macroeconomic variables (“MEVs”), typically a one-year forecast period is used. MEV’s considered in the analysis consist of data gathered from the St. Louis Federal Reserve Research Database (“FRED”), such as, federal funds rate, 10-year treasury rates, 30-year mortgage rates, crude oil prices, consumer price index, housing price index, unemployment rates, housing starts, gross domestic product, and disposable personal income. These regression models are applied to the Company’s economic forecast to determine the corresponding net charge-off rates. The projected net charge-off rates for the given economic scenario are used to adjust the life of loan expected losses. Qualitative adjustments are also made to ACL results for additional risk factors that are relevant in assessing the expected credit losses within our loan segments. These qualitative factor (“Q-Factor”) adjustments may increase or decrease management’s estimate of the ACL by a calculated percentage based upon the estimated level of risk within a particular segment. Q-Factor risk decisions consider concentrations of the loan portfolio, expected changes to the economic forecasts, large relationships, and other factors related to credit administration, such as borrower’s risk rating and the potential effect of delayed credit score migrations. Management quantifiably identifies segment percentage Q-Factor adjustments using a scorecard risk rating system scaled to historical loss experience within a segment and management’s perceived risk for that particular segment.

While management uses available information to recognize credit 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 credit losses on loans. Such agencies may require the bank subsidiary to recognize additional credit 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 credit losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated.

Loans that exhibit characteristics different from their pool characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective ACL evaluation. When management determines that foreclosure is probable, or if certain of these loans are considered to be collateral dependent with the borrower experiencing financial difficulty, the Company elects the fair value of collateral practical expedient, whereby the allowance is calculated as the amount by which the amortized cost exceeds the fair value of collateral, less costs to sell.

ACL (Off-Balance Sheet Credit Exposures) – The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL for off-balance sheet credit exposures is adjusted through provision for credit losses. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Utilization rates are determined based on a two-year rolling average of historical usage. Expected loss rates for all pass rated loans are used to determine the ACL for off-balance sheet credit exposures. The ACL for off-balance sheet credit exposures is included in accrued expenses and other liabilities on the Company’s Consolidated Balance Sheets.

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 ACL. 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, adjusted for estimated prepayments and credit losses. In accordance with Topic 326, the fair value adjustment is recorded as premium or discount to the unpaid principal balance of each acquired loan. In addition, the Company also records an ACL on each acquired loan.

Any acquired loans the Company determines have evidence of a more than insignificant deterioration in credit quality since origination, are considered to be purchase credit deteriorated (“PCD”) loans. The Company evaluates acquired loans for deterioration in credit quality based on any of, but not limited to, the following: (i) non-accrual status; (ii) risk rating, (iii) watchlist credits; and (iv) delinquency status. An ACL is determined using the same methodology as other individually evaluated loans. The sum of the PCD loan’s purchase price and ACL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a non-credit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACL are recorded through provision for credit 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. During the three months ended March 31, 2023, economic uncertainty and liquidity concerns surrounding the Company’s industry of operations resulted in a decrease in the Company’s stock price. The Company believed this resulted in a triggering event requiring an interim goodwill impairment quantitative analysis. The Company’s estimated fair value as of March 31, 2023 exceeded its carrying amount resulting in no impairment charge for the three months ended March 31, 2023. In addition, there was no goodwill impairment recorded for the year ended December 31, 2022.

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.

Earnings per Share – Basic earnings per share is net income divided by the weighted average number of common shares outstanding during the period. 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 consolidated financial statements.

Segment Information – The Company previously identified two operating segments: banking and insurance. The accounting policies for each of the segments were the same as those described in the summary of significant accounting policies. Effective January 1, 2023, operations and financial performance of the insurance segment were being performed and evaluated on a Company-wide basis based on not being significant to the operating results of the Company. Furthermore, the insurance segment was sold on April 1, 2023 (see Note 14). As a result, segment reporting disclosures have been removed.

Subsequent Events – The Company has evaluated subsequent events and transactions from March 31,2023 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, 2023

SECURITIES [Abstract]

SECURITIES

2. SECURITIES

The amortized cost, related gross unrealized gains and losses, allowance for credit losses, and estimated fair value of securities available for sale at the dates indicated follows (dollars in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses		Fair Value
March 31, 2023
Available for sale:
State and municipal	$	258,575	$	26	$	(27,424	)	$	—	$	231,177
Residential mortgage-backed securities		380,008		946		(53,431	)		—		327,523
Commercial mortgage-backed securities		48,843		—		(6,176	)		—		42,667
Commercial collateralized mortgage obligations		73,024		—		(5,473	)		—		67,551
Asset-backed and other amortizing securities		20,263		—		(1,594	)		—		18,669
Other securities		12,000		—		(1,008	)		—		10,992
	$	792,713	$	972	$	(95,106	)	$	—	$	698,579

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2022
Available for sale:
State and municipal	$	259,429	$	27	$	(34,401	)	$	225,055
Residential mortgage-backed securities		386,783		—		(57,938	)		328,845
Commercial mortgage-backed securities		49,161		—		(7,194	)		41,967
Commercial collateralized mortgage obligations		76,189		—		(551	)		75,638
Asset-backed and other amortizing securities		20,907		—		(1,813	)		19,094
Other securities		12,000		—		(888	)		11,112
	$	804,469	$	27	$	(102,785	)	$	701,711

The amortized cost and estimated fair value of securities at March 31, 2023 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	$	3,897	$	3,900
After 1 year through 5 years		9,454		9,250
After 5 years through 10 years		17,901		16,868
After 10 years		239,323		212,151
Other		522,138		456,410
	$	792,713	$	698,579

At both March 31, 2023 and December 31, 2022, 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 $496.2 million and $464.1 million at March 31, 2023 and December 31, 2022, 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 for which an allowance for credit losses has not been recorded (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, 2023
State and municipal	$	6,903	$	24	$	216,567	$	27,400	$	223,470	$	27,424
Residential mortgage-backed securities		1		—		322,389		53,431		322,390		53,431
Commercial mortgage-backed securities		—		—		42,667		6,176		42,667		6,176
Commercial collateralized mortgage obligations		67,551		5,473		—		—		67,551		5,473
Asset-backed and other amortizing securities		—		—		18,669		1,594		18,669		1,594
Other securities		9,636		864		1,356		144		10,992		1,008
	$	84,091	$	6,361	$	601,648	$	88,745	$	685,739	$	95,106

December 31, 2022
State and municipal	$	162,746	$	23,538	$	57,675	$	10,863	$	220,421	$	34,401
Residential mortgage-backed securities		220,752		27,967		108,080		29,971		328,832		57,938
Commercial mortgage-backed securities		41,966		7,194		—		—		41,966		7,194
Commercial collateralized mortgage obligations		75,638		551		—		—		75,638		551
Asset-backed and other amortizing securities		19,094		1,813		—		—		19,094		1,813
Other securities		11,112		888		—		—		11,112		888
	$	531,308	$	61,951	$	165,755	$	40,834	$	697,063	$	102,785

There were 161 securities with an unrealized loss at March 31, 2023, generally due to increases in market rates. Management evaluates AFS securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or non-credit related factors. Consideration is given to the extent to which the fair value is less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for the anticipated recovery in fair value. Management does not have the intent to sell any of the securities in an unrealized loss position as there are adequate liquidity sources to meet expected and unexpected funding needs. The fair value of these securities is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of March 31, 2023, management believes the unrealized loss positions detailed in the previous table are due to non-credit related factors, including changes in interest rates and other market conditions, and therefore no ACL or losses have been recognized or realized in the Company’s consolidated financial statements.

LOANS HELD FOR INVESTMENT

3 Months Ended

Mar. 31, 2023

LOANS HELD FOR INVESTMENT [Abstract]

LOANS HELD FOR INVESTMENT

3. LOANS HELD FOR INVESTMENT

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

	March 31, 2023			December 31, 2022
Commercial real estate	$	926,018		$	919,358
Commercial - specialized		315,473			327,513
Commercial - general		510,917			484,783
Consumer:
1-4 family residential		485,396			460,124
Auto loans		321,309			321,476
Other consumer		81,413			81,308
Construction		148,114			153,519
		2,788,640			2,748,081
Allowance for credit losses on loans		(39,560	)		(39,288	)
Loans, net	$	2,749,080		$	2,708,793

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 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.

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 typically 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. Performance of these loans is subject to operating and cash flow results of the borrower, with risk in the volatility of operating results for particular industries.

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. All consumer loans are generally dependent on the risk characteristics of the borrower’s ability to repay the loan, a consideration of the debt to income ratio, employment and income stability, the loan-to-value ratio, and the age, condition and marketability of the collateral.

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.

The ACL for loans was $39.6 million at March 31, 2023, compared to $39.3 million at December 31, 2022. The ACL for loans to loans held for investment was 1.42% at March 31, 2023 and 1.43% at December 31, 2022.

The following table details the activity in the ACL for loans 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		Impact of CECL Adoption			Provision for Credit Losses⁽¹⁾			Charge-offs			Recoveries		Ending Balance
For the three months ended March 31, 2023
Commercial real estate	$	13,029	$	827		$	(475	)	$	—		$	—	$	13,381
Commercial - specialized		3,425		33			(11	)		—			63		3,510
Commercial - general		9,215		(2,574	)		(237	)		(199	)		62		6,267
Consumer:
1-4 family residential		6,194		1,700			635			—			2		8,531
Auto loans		3,926		(332	)		298			(254	)		76		3,714
Other consumer		1,376		(235	)		68			(214	)		106		1,101
Construction		2,123		683			522			(272	)		—		3,056
	$	39,288	$	102		$	800		$	(939	)	$	309	$	39,560

(1) The $1.0 million provision for credit loss on the consolidated statement of comprehensive income (loss) includes a $800 thousand provision for credit losses on loans and a $210 thousand provision for off-balance sheet credit exposures for the three months ended March 31, 2023.

	Beginning Balance		Provision for Credit 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
	$	42,098	$	(2,085	)	$	(657	)	$	293	$	39,649

During the three months ended March 31, 2023, the provision for credit losses on loans of $800 thousand reflected a build in the allowance driven primarily by organic loan growth experienced over the first three months of 2023. The changes in the ACL for this period were also impacted by net charge-offs of $630 thousand.

All of the individually analyzed loans are predominantly secured by real estate. The following table shows the Company’s amortized cost in loans and related ACL for loans recorded disaggregated based on using the fair value of collateral loss estimation methodology of evaluating expected credit losses at the date indicated (dollars in thousands).

	Individually Evaluated – Amortized Cost		Individually Evaluated – ACL
March 31, 2023
Commercial real estate	$	79	$	—
Commercial - specialized		—		—
Commercial - general		3,742		63
Consumer:
1-4 family residential		486		83
Auto loans		—		—
Other consumer		—		—
Construction		—		—
	$	4,307	$	146

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

	Recorded Investment				ACL for Loans
	Individually Evaluated		Collectively Evaluated		Individually Evaluated		Collectively Evaluated
December 31, 2022
Commercial real estate	$	—	$	919,358	$	—	$	13,029
Commercial - specialized		—		327,513		—		3,425
Commercial - general		3,350		481,433		22		9,193
Consumer:
1-4 family residential		742		459,382		18		6,176
Auto loans		—		321,476		—		3,926
Other consumer		—		81,308		—		1,376
Construction		1,014		152,505		245		1,878
	$	5,106	$	2,742,975	$	285	$	39,003

Impaired loan information at the date 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

December 31, 2022
Commercial real estate	$	—	$	—	$	—	$	—	$	—	$	551
Commercial - specialized		—		—		—		—		—		—
Commercial - general		3,350		799		2,551		3,350		22		4,214
Consumer:
1-4 family		742		486		256		742		18		1,167
Auto loans		—		—		—		—		—		—
Other consumer		—		—		—		—		—		—
Construction		1,014		686		328		1,014		245		507
	$	5,106	$	1,971	$	3,135	$	5,106	$	285	$	6,439

All impaired loans $250 thousand and greater were specifically evaluated for impairment at December 31, 2022. Interest income recognized using a cash-basis method on impaired loans for the three months ended March 31, 2022 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		Nonaccrual with no ACL
March 31, 2023
Commercial real estate	$	2,236	$	19	$	79	$	79
Commercial - specialized		1,042		13		36		—
Commercial - general		753		74		3,671		3,141
Consumer:
1-4 Family residential		1,285		2,011		1,326		—
Auto loans		335		94		—		—
Other consumer		251		221		36		—
Construction		1,146		—		—		—
	$	7,048	$	2,432	$	5,148	$	3,220

	30-89 Days Past Due		90 Days or More Past Due		Nonaccrual
December 31, 2022
Commercial real estate	$	342	$	27	$	—
Commercial - specialized		25		13		38
Commercial - general		1,451		60		3,357
Consumer:
1-4 Family residential		1,389		1,653		1,356
Auto loans		707		85		—
Other consumer		1,487		149		37
Construction		550		—		1,014
	$	5,951	$	1,987	$	5,802

The Company has elected the fair value option for recording residential mortgage loans held for sale (mandatory) in accordance with GAAP. The Company had no nonaccrual mortgage loans held for sale (mandatory) at March 31, 2023, and December 31, 2022.

Credit Quality Indicators

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. These risk ratings are assigned based on relevant information about the ability of the borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.

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.

In connection with the review of the Company’s loan portfolio, management considers risk elements attributable to particular loan type or categories in assessing the quality of individual loans. The list of loans to be analyzed for individual evaluation consists of non-accrual loans over $250,000 with direct exposure. Interest income recognized using a cash-basis method on non-accrual loans for the three months ended March 31, 2023 was not significant. In addition, the Company closely monitors substandard accruing loans over $1 million with direct exposure, and past due accruing loans over $100,000 for possible individual evaluation. All other loans will be evaluated collectively in designated pools unless a loss exposure has been identified.

The following table reflects the amortized cost basis in loans by credit quality indicator and origination year at March 31, 2023, excluding loans held for sale. Loans acquired are shown in the table by origination year, not merger date. The Company had an immaterial amount of revolving loans converted to term loans at March 31, 2023.

							Term Loans
					Amortized Cost Basis by Origination Year

(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total

Commercial real estate:
Pass	$	62,228	$	291,185	$	230,596	$	65,575	$	69,961	$	179,093	$	3,511	$	902,149
Special mention		—		—		—		—		—		—		—		—
Classified		—		19		117		1,841		870		21,022		—		23,869
Total commercial real estate loans	$	62,228	$	291,204	$	230,713	$	67,416	$	70,831	$	200,115	$	3,511	$	926,018
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial - specialized:
Pass	$	26,236	$	70,603	$	65,620	$	22,967	$	17,446	$	29,568	$	82,523	$	314,963
Special mention		—		—		—		—		—		—		—		—
Classified		—		—		183		245		19		63		—		510
Total commercial - specialized loans	$	26,236	$	70,603	$	65,803	$	23,212	$	17,465	$	29,631	$	82,523	$	315,473
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial - general:
Pass	$	28,675	$	150,325	$	102,064	$	41,549	$	19,139	$	79,283	$	54,664	$	475,699
Special mention		—		—		—		—		—		—		—		—
Classified		—		13,019		4,724		540		6,433		6,079		4,423		35,218
Total commercial - general loans	$	28,675	$	163,344	$	106,788	$	42,089	$	25,572	$	85,362	$	59,087	$	510,917
Current period gross charge-offs	$	—	$	—	$	25	$	10	$	18	$	146	$	—	$	199
Consumer: 1-4 family residential:

Pass	$	24,089	$	166,053	$	116,762	$	58,256	$	34,702	$	70,999	$	3,749	$	474,610
Special mention		—		—		—		—		—		—		—		—
Classified		—		154		919		1,831		4,356		3,526		—		10,786
Total consumer: 1-4 family residential loans	$	24,089	$	166,207	$	117,681	$	60,087	$	39,058	$	74,525	$	3,749	$	485,396
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer: auto loans:
Pass	$	32,574		170,405		71,132		26,400		13,730		6,741		—		320,982
Special mention		—		—		—		—		—		—		—		—
Classified		—		—		133		50		79		65		—		327
Total consumer: auto loans	$	32,574	$	170,405	$	71,265	$	26,450	$	13,809	$	6,806	$	—	$	321,309
Current period gross charge-offs	$	—	$	106	$	102	$	—	$	16	$	30	$	—	$	254

Consumer: other consumer:
Pass	$	7,117	$	38,896	$	16,431	$	5,320	$	4,009	$	7,866	$	1,574	$	81,213
Special mention		—		—		—		—		—		—		—		—
Classified		—		12		50		36		3		99		—		200
Total consumer: other consumer loans	$	7,117	$	38,908	$	16,481	$	5,356	$	4,012	$	7,965	$	1,574	$	81,413
Current period gross charge-offs	$	53	$	91	$	19	$	6	$	34	$	11	$	—	$	214

Construction:
Pass	$	6,565	$	102,556	$	26,638	$	270	$	—	$	—	$	12,085	$	148,114
Special mention		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—
Total construction loans	$	6,565	$	102,556	$	26,638	$	270	$	—	$	—	$	12,085	$	148,114
Current period gross charge-offs	$	—	$	—	$	272	$	—	$	—	$	—	$	—	$	272

The following table summarizes loans by credit quality indicator at December 31, 2022 (dollars in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate	$	893,312	$	—	$	26,046	$	—	$	919,358
Commercial - specialized		326,987		—		526		—		327,513
Commercial - general		451,639		—		33,144		—		484,783
Consumer:
1-4 family residential		450,034		—		10,090		—		460,124
Auto loans		321,158		—		318		—		321,476
Other consumer		81,109		—		199		—		81,308
Construction		151,995		—		1,524		—		153,519
	$	2,676,234	$	—	$	71,847	$	—	$	2,748,081

Occasionally, the Company modifies loans to borrowers in financial distress by providing principal forgiveness, term extensions, an other than insignificant payment delay, or interest rate reduction. When principal forgiveness is provided, the amount of forgiveness is charged-off against the allowance for credit losses. Typically, one type of concession, such as term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. In some cases, the Company provides multiple types of concessions on one loan. For the loans included in the “combination” columns below, multiple types of modifications have been made on the same loan within the current reporting period.

The following table presents the amortized cost basis of loans at March 31, 2023 that were both experiencing financial difficulty and modified during the three months ended March 31, 2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost bases of each class of financing receivable is also presented below (dollars in thousands):

	Payment Delay		Term Extension		Interest Rate Reduction		Term Extension and Interest Rate Reduction		Total Class of Financing Receivable
March 31, 2023
Commercial real estate	$	—	$	—	$	—	$	—		0.00	%
Commercial - specialized		—		—		—		—		0.00	%
Commercial - general		—		2,999		—		42		0.60	%
Consumer:
1-4 family		—		199		—		—		0.04	%
Auto loans		—		40		—		—		0.01	%
Other consumer		—		—		—		—		0.00	%
Construction		—		—		—		—		0.00	%
	$	—	$	3,238	$	—	$	42		0.12	%

The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following presents the performance of such loans that have been modified in the last three months (dollars in thousands):

	30-89 Days Past Due		90 Days or More Past Due and Still Accruing		Nonaccrual
March 31, 2023
Commercial real estate	$	—	$	—	$	—
Commercial - specialized		—		—		—
Commercial - general		—		—		—
Consumer:
1-4 Family residential		—		—		—
Auto loans		40		—		—
Other consumer		—		—		—
Construction		—		—		—
	$	40	$	—	$	—

The following table presents the financial effects of the loan modifications presented above to borrowers experiencing financial difficulty for the three months ended March 31, 2023 (dollars in thousands):

	Principal Forgiveness		Weighted- Average Interest Rate Reduction			Weighted- Average Term Extension (Months)
March 31, 2023
Commercial real estate	$	—		0.00	%		—
Commercial - specialized		—		0.00	%		—
Commercial - general		—		0.25	%		43
Consumer:
1-4 Family residential		—		0.00	%		10
Auto loans		—		0.00	%		15
Other consumer		—		0.00	%		—
Construction		—		0.00	%		—
	$	—		0.25	%		41

As of March 31, 2023, the Company did not have any loans made to borrowers experiencing financial difficulty that were modified during the three months ended March 31, 2023 that subsequently defaulted. Payment default is defined as movement to nonperforming status, foreclosure, or charge-off.

Upon the Company’s determination that a modified loan has subsequently been deemed to not be fully collectible, the uncollectible amount is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

There were no loans modified as a TDR during the year ended December 31, 2022.

GOODWILL AND INTANGIBLES

3 Months Ended

Mar. 31, 2023

GOODWILL AND INTANGIBLES [Abstract]

GOODWILL AND INTANGIBLES

4. GOODWILL AND INTANGIBLES

The Company had goodwill of $19.5 million at March 31, 2023 and December 31, 2022.

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

	March 31, 2023			December 31, 2022
Amortized intangible assets
Core deposit intangible	$	6,679		$	6,679
Less: Accumulated amortization		(3,633	)		(3,420	)
		3,046			3,259

Other intangibles		2,972			2,972
Less: Accumulated amortization		(2,030	)		(1,882	)
		942			1,090
Other intangible assets, net	$	3,988		$	4,349

MORTGAGE SERVICING RIGHTS

3 Months Ended

Mar. 31, 2023

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 Company’s 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,
	2023			2022
Beginning balance	$	27,474		$	19,700
Additions		271			1,250
Valuation adjustment		(1,950	)		4,475
Ending balance	$	25,795		$	25,425

	March 31,			December 31,
		2023			2022
Mortgage loans serviced for others	$	2,037,390		$	2,046,490
Mortgage servicing rights assets as a percentage of serviced mortgage loans		1.27	%		1.34	%

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,
	2023			2022
Weighted average constant prepayment rate		7.44	%		7.47	%
Weighted average discount rate		9.65	%		9.15	%
Weighted average life in years		7.93			7.91

- 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

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+ Details

BORROWING ARRANGEMENTS	3 Months Ended
BORROWING ARRANGEMENTS	Mar. 31, 2023
BORROWING ARRANGEMENTS [Abstract]
BORROWING ARRANGEMENTS	6. BORROWING ARRANGEMENTS Subordinated Debt In December 2018, the Company issued $26.5 million in subordinated debt notes. Notes totaling $12.4 million 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 notes 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, all notes will float at the Wall Street Journal prime rate, with a floor of 4.0% and a ceiling of 7.5%. These notes 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 notes 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 notes. Proceeds were reduced by approximately $926 thousand in debt issuance costs. The notes 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 notes 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 notes 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 notes are intended to qualify for Tier 2 capital treatment, subject to regulatory limitations. As of March 31, 2023, the total amount of subordinated notes outstanding was $76.5 million less approximately $465 thousand of remaining debt issuance costs for a total balance of $76.0 million. As of December 31, 2022, the total amount of subordinated notes outstanding was $76.5 million less approximately $511 thousand of remaining debt issuance costs for a total balance of $76.0 million. Notes Payable and Other Borrowings As of March 31, 2023 and December 31, 2022, 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, 2023

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 into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

Options

A summary of activity in the Plan during 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, 2023
Outstanding at beginning of year:		1,354,189		$	16.11			$	7,533
Granted		47,816			27.46				—
Exercised		(25,521	)		12.75				(221	)
Forfeited		(1,125	)		20.19				(2	)
Expired		—			—				—

Balance, March 31, 2023		1,375,359		$	16.57		5.59	$	7,310

Exercisable at end of period		1,146,610		$	15.31		5.07	$	7,096

Vested at end of period		1,146,610		$	15.31		5.07	$	7,096

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

	Three Months Ended March 31,
	2023		2022
Expected volatility	39.13% to 39.68%		40.20% to 40.29%
Expected dividend yield		1.74% to 1.90%		1.30%
Expected term (years)	6.1 to 6.3		6.1 to 6.3
Risk-free interest rate	3.91% to 3.98%		1.56% to 1.95%
Weighted average grant date fair value	$	10.26	$	10.54

The total intrinsic value of options exercised during the three months ended March 31, 2023 and March 31, 2022 was $275 thousand and $74 thousand, respectively.

Restricted Stock Awards and Units

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

	Number of Shares			Weighted-Average Grant Date Fair Value
Three Months Ended March 31, 2023
Outstanding at beginning of year:		84,342		$	26.76
Granted		85,127			25.33
Vested		(37,319	)		24.30
Forfeited		(1,120	)		24.16

Balance, March 31, 2023		131,030		$	26.56

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, 2023 was $4.6 million and will be recognized over a weighted average remaining period of 1.83 years. The total fair value of restricted stock units vested during each of the three months ended March 31, 2023 and March 31, 2022 was $907 thousand and $464 thousand, respectively.

OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2023

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, 2023		December 31, 2022
Commitments to grant loans and unfunded commitments under lines of credit	$	720,851	$	682,296
Standby letters of credit		12,821		13,864

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.

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, 2023 or December 31, 2022.

LEASES

3 Months Ended

Mar. 31, 2023

LEASES [Abstract]

LEASES

9. LEASES

Lessee Arrangements

The Company leases space, primarily for branch facilities and small equipment under operating leases. The Company’s leases often include one or more options to renew at the Company’s discretion, and some of the Company’s leases include options to terminate within one year. When it is reasonably certain that the Company will exercise the option to renew or extend the lease term, that option is included in estimating the value of the ROU asset and lease liability. The Company’s leases contain customary restrictions and covenants and do not contain any residual value guarantees. The Company has certain intercompany leases and subleases between its subsidiaries, and these transactions and balances have been eliminated in consolidation and are not reflected in the tables and information presented below. As of March 31, 2023 and December 31, 2022, the Company had no finance leases.

The balance sheet components of the Company’s leases are as follows (in thousands):

	March 31, 2023		December 31, 2022
Operating lease right of use assets (included in Other assets)	$	7,871	$	7,938
Operating lease liabilities (included in Accrued expenses and other liabilities)		8,829		8,897

The Company does not generally enter into leases which contain variable payments, other than due to the passage of time. Operating lease costs, including short-term lease costs were $705 thousand and $597 thousand, respectively, for the three months ended March 31, 2023 and 2022.

Supplemental cash flow information related to leases is as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	503	$	—
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	318	$	—

For operating leases the Company’s weighted average remaining lease terms in years and weighted average discount rate was 9.70% and 4.73%, respectively, as of March 31, 2023. The weighted average remaining lease terms in years and weighted average discount rate was 9.83% and 4.65%, respectively as of December 31, 2022.

Future undiscounted lease payments at March 31, 2023, under operating lease agreements, are presented below (in thousands).

2023	$	1,443
2024		1,501
2025		1,102
2026		1,101
2027		1,063
Thereafter		5,050
Total minimum lease payments		11,260
Less: Amount representing interest		(2,431	)
Lease liabilities	$	8,829

As of March 31, 2023, the Company had one additional operating lease that had not yet commenced with aggregate future minimum lease payments of approximately $255 thousand. This lease is expected to commence in May 2023 with a lease term of three years.

Lessor Arrangements

The Company leases certain facilities and office space under operating lease agreements to outside parties. Operating lease income for the three months ended March 31, 2023, and 2022 was $204 thousand and $216 thousand, respectively and is included in occupancy and equipment, net in the consolidated statements of comprehensive income (loss).

CAPITAL AND REGULATORY MATTERS

3 Months Ended

Mar. 31, 2023

CAPITAL AND REGULATORY MATTERS [Abstract]

CAPITAL AND REGULATORY MATTERS

10. 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.

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, 2023 and December 31, 2022, that the Company and its bank subsidiary met all capital adequacy requirements to which they are subject.

As of March 31, 2023 and December 31, 2022, the Company met the definition of “well-capitalized” under the applicable regulations of the Board of Governors of the Federal Reserve System and the bank subsidiary was “well capitalized” under the FDIC’s regulatory framework for prompt corrective action and the Basel III capital guidelines. 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, 2023 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 Framework
	Amount		Ratio			Amount		Ratio			Amount		Ratio
March 31, 2023
Total Capital to Risk Weighted Assets:
Consolidated	$	567,364		16.70	%	$	356,699		10.50	%		N/A		N/A
City Bank		461,457		13.59	%		356,569		10.50	%	$	339,589		10.00	%

Tier I Capital to Risk Weighted Assets:
Consolidated		449,847		13.24	%		288,756		8.50	%		N/A		N/A
City Bank		419,948		12.37	%		288,651		8.50	%		271,671		8.00	%

Common Equity Tier 1 to Risk Weighted Assets:
Consolidated		404,847		11.92	%		237,799		7.00	%		N/A		N/A
City Bank		419,948		12.37	%		237,712		7.00	%		220,733		6.50	%

Tier I Capital to Average Assets:
Consolidated		449,847		11.22	%		161,253		4.00	%		N/A		N/A
City Bank		419,948		10.48	%		161,166		4.00	%		200,282		5.00	%

December 31, 2022
Total Capital to Risk Weighted Assets:
Consolidated	$	559,094		16.58	%	$	354,045		10.50	%		N/A		N/A
City Bank		454,427		13.48	%		353,967		10.50	%	$	337,112		10.00	%

Tier I Capital to Risk Weighted Assets:
Consolidated		443,265		13.15	%		286,608		8.50	%		N/A		N/A
City Bank		414,559		12.30	%		286,545		8.50	%		269,689		8.00	%

Common Equity Tier 1 to Risk Weighted Assets:
Consolidated		398,265		11.81	%		236,030		7.00	%		N/A		N/A
City Bank		414,559		12.30	%		235,978		7.00	%		219,122		6.50	%

Tier I Capital to Average Assets:
Consolidated		443,265		11.03	%		161,662		4.00	%		N/A		N/A
City Bank		414,559		10.32	%		161,574		4.00	%		200,774		5.00	%

The Company is subject to the Basel III capital ratio requirements which include a “capital conservation buffer” of 2.50% above the regulatory minimum risk-based capital adequacy requirements. This 2.50% capital conservation buffer is reflected in the table above. Both the Company’s and the Bank’s actual ratios, as outlined in the table above, exceeded the Basel III risk-based capital requirement with the capital conservation buffer as of March 31, 2023.

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, 2023

DERIVATIVES [Abstract]

DERIVATIVES

11. 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 Company’s Consolidated Statements of Comprehensive Income (Loss) for the periods indicated (dollars in thousands):

		Three Months Ended
		March 31,
Interest Rate Contracts	Location	2023			2022
Change in fair value of interest rate swaps hedging investment securities	Other noninterest expense	$	(2,654	)	$	6,749
Change in fair value of hedged investment securities	Other noninterest expense		2,638			(6,899	)
Change in fair value of interest rate swaps hedging fixed rate loans	Interest income - Loans	$	—		$	458
Change in fair value of hedged fixed rate loans	Interest income - Loans		—			(463	)

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

	March 31, 2023				December 31, 2022
	Notional Amount		Fair Value		Notional Amount		Fair Value

Included in other liabilities:
Interest rate swaps related to fixed rate loans	$	—	$	—	$	—	$	—
Interest rate swaps related to state and municipal securities		—		—		—		—

Included in other assets:
Interest rate swaps related to fixed rate loans	$	9,348	$	482	$	9,493	$	482
Interest rate swaps related to state and municipal securities		123,760		17,471		123,760		20,125

Mortgage banking derivatives

These derivatives are not designated as hedging instruments. The net gains (losses) relating to free standing derivative instruments used for risk management are summarized below for the periods indicated (dollars in thousands):

		Three Months Ended
		March 31,
	Location	2023			2022
Gain (loss) on mortgage banking derivatives	Net gain (loss) on sales of loans	$	(281	)	$	(1,093	)

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

	March 31, 2023				December 31, 2022
	Notional Amount		Fair Value		Notional Amount		Fair Value

Included in other assets:
Forward contracts related to mortgage loans held for sale	$	—	$	—	$	23,500	$	186
Interest rate lock commitments		42,188		978		27,348		369

Included in other liabilities:
Forward contracts related to mortgage loans held for sale	$	35,244	$	409	$	5,615	$	128

The Company had received cash collateral of $17.6 million and $18.9 million to offset asset derivative positions on its interest rate swaps at March 31, 2023 and December 31, 2022, respectively. This amount is reported in other liabilities in the Company’s Consolidated Balance Sheets. The Company had advanced $1.1 million to offset liability derivative positions on its interest rate swaps at March 31, 2023 and December 31, 2022, respectively. Additionally, the Company had advanced $440 thousand on its mortgage forward contracts at March 31, 2023 and December 31, 2022, respectively. The advanced cash collateral amounts are reported in cash and due from banks in the Company’s Consolidated Balance Sheets.

EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2023

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

12. 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,
	2023		2022
Net income	$	9,244	$	14,278

Weighted average common shares outstanding - basic		17,046,713		17,716,136
Effect of dilutive securities:
Stock-based compensation awards		514,043		676,261
Weighted average common shares outstanding - diluted		17,560,756		18,392,397

Basic earnings per share	$	0.54	$	0.81
Diluted earnings per share	$	0.53	$	0.78

FAIR VALUE DISCLOSURES

3 Months Ended

Mar. 31, 2023

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, 2023
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
State and municipal	$	—	$	231,177		$	—	$	231,177
Residential mortgage-backed securities		—		327,523			—		327,523
Commercial mortgage-backed securities		—		42,667			—		42,667
Collateralized mortgage obligations		—		67,551			—		67,551
Asset-backed and other amortizing securities		—		18,669			—		18,669
Other securities		—		10,992			—		10,992
Loans held for sale (mandatory)		—		11,576			—		11,576
Mortgage servicing rights		—		—			25,795		25,795
Asset derivatives		—		18,931			—		18,931
Liability derivatives		—		(409	)		—		(409	)

Assets measured at fair value on a non-recurring basis:
Loans held for investment		—		—			4,161		4,161

December 31, 2022
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
State and municipal	$	—	$	225,055		$	—	$	225,055
Residential mortgage-backed securities		—		328,845			—		328,845
Commercial mortgage-backed securities		—		41,967			—		41,967
Collateralized mortgage obligations		—		75,638			—		75,638
Asset-backed and other amortizing securities		—		19,094			—		19,094
Other securities		—		11,112			—		11,112
Loans held for sale (mandatory)		—		10,038			—		10,038
Mortgage servicing rights		—		—			27,474		27,474
Asset derivatives		—		21,162			—		21,162
Liability derivatives		—		(128	)		—		(128	)

Assets measured at fair value on a non-recurring basis:
Loans held for investment		—		—			4,821		4,821

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.

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 speeds, default rates, and discount rates, which are significant unobservable inputs. Mortgage servicing rights are the only Level 3 asset measured at fair value on a recurring basis, see Note 5 for the Level 3 change activity for the three months ended March 31, 2023 and 2022.

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

Loans held for investment – Includes certain collateral-dependent loans which are reported at the fair value, for which a specific allocation of the allowance for credit losses is based off 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.

Fair Values of Assets Recorded on a Recurring Basis for which the Fair Value Option has been Elected

Loans held for sale (mandatory) – Loans held for sale originated for mandatory delivery are reported at fair value on a recurring basis due to the Company’s election to adopt fair value accounting treatment for these assets. This election allows for a more effective offset of the changes in fair values of the assets and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting under ASC Topic 815, Derivatives and Hedging. For assets for which the fair value option has been elected, the earned current contractual interest payment is recognized in interest income, loan origination costs and fees on fair value option loans are recognized in earnings as incurred and not deferred. At March 31, 2023, and December 31, 2022, there were no gains or losses recorded attributable to changes in instrument-specific credit risk. Fair value is determined using quoted prices for similar assets, adjusted for specific attributes of that loan. At March 31, 2023 and December 31, 2022 the aggregate fair value of loans held for sale for mandatory delivery was $11.6 million and $10.0 million, respectively. The aggregate unpaid principal balance as of the same dates was $12.0 million and $9.9 million, respectively, representing differences between fair value and unpaid principal balance of $(469) thousand and $163 thousand, respectively. There were no loans held for sale for mandatory delivery designated as nonaccrual or 90 days or more past due at March 31, 2023 and December 31, 2022.

The total fair value option impact on noninterest income for loans held for sale for mandatory delivery is included in Net gain on sales of loans in the Company’s Consolidated Statements of Comprehensive Income (Loss). For the three months ended March 31, 2023 and 2022 the net (gain) loss amount totaled $(261) thousand and $2.1 million, respectively.

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, 2023
Non-recurring:
Loans held for investment	$	4,161	Third party appraisals or inspections	Collateral discounts and selling costs		20%-100	%
Recurring:
Mortgage servicing rights		25,795	Discounted cash flows	Conditional prepayment rate		7.44	%
				Discount rate		9.65	%

December 31, 2022
Non-recurring:
Loans held for investment	$	4,821	Third party appraisals or inspections	Collateral discounts and selling costs		20%-100	%
Recurring:
Mortgage servicing rights		27,474	Discounted cash flows	Conditional prepayment rate		7.47	%
				Discount rate		9.15	%

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, 2023
Financial assets:
Cash and cash equivalents	$	328,002	$	328,002	$	—	$	—	$	328,002
Loans held for investment, net		2,749,080		—		—		2,697,002		2,697,002
Loans held for sale (best efforts)		8,872		—		9,070		—		9,070
Accrued interest receivable		14,421		—		14,421		—		14,421

Financial liabilities:
Deposits	$	3,508,054	$	—	$	3,507,917	$	—	$	3,507,917
Accrued interest payable		2,754		—		2,754		—		2,754
Junior subordinated deferrable interest debentures		46,393		—		32,395		—		32,395
Subordinated debt securities		76,007		—		64,498		—		64,498

	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value

December 31, 2022
Financial assets:
Cash and cash equivalents	$	234,883	$	234,883	$	—	$	—	$	234,883
Loans held for investment, net		2,708,793		—		—		2,662,609		2,662,609
Loans held for sale (best efforts)		20,365		—		20,745		—		20,745
Accrued interest receivable		16,432		—		16,432		—		16,432

Financial liabilities:
Deposits	$	3,406,430	$	—	$	3,405,222	$	—	$	3,405,222
Accrued interest payable		2,836		—		2,836		—		2,836
Junior subordinated deferrable interest debentures		46,393		—		34,606		—		34,606
Subordinated debt securities		75,961		—		70,835		—		70,835

- 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, 2023
SUBSEQUENT EVENTS [Abstract]
SUBSEQUENT EVENTS	14. SUBSEQUENT EVENTS Dividend Declaration On April 20, 2023, the Company declared a cash dividend of $0.13 per share of common stock to be paid on May 15, 2023 to all shareholders of record as of May 1, 2023. Windmark Sale On April 1, 2023, the Company entered into a Securities Purchase Agreement (“Agreement”) with Alliant Insurance Services, Inc., a California corporation (“Alliant”), providing for the sale of Windmark through a sale of all of the outstanding shares of capital stock of Windmark to Alliant. The transaction was consummated on April 1, 2023. Pursuant to the terms and subject to the conditions of the Agreement, the Company received an aggregate purchase price of $35.5 million in exchange for Windmark’s shares. The purchase price may be increased by the net amount of Windmark working capital as provided in the Agreement. The Agreement contains certain post-closing obligations of the Company, such as providing transition services to Alliant, indemnification obligations, and restrictive covenants that restrict the Company from soliciting the customers and employees of Windmark, or competing with Alliant in Texas, Oklahoma, Colorado, Nebraska, Kansas, Iowa, and Wyoming for a term of five (5) years, subject to certain conditions and exceptions as provided in the Agreement. The aggregate transaction costs incurred by the Company are approximately $3.1 million, which includes, without limitation, legal and accounting costs, payment for tail insurance coverage for the directors and officers of Windmark as contemplated by the Agreement, and payments to certain employees of Windmark in connection with the transaction. New Stock Repurchase Program On May 5, 2023, SPFI’s board of directors (the “Board”) approved a new stock repurchase program for up to $15.0 million of the outstanding shares of the Company’s common stock (the “Stock Repurchase Program”). The Stock Repurchase Program began on May 5, 2023 and has an expiration date of May 5, 2024, subject to earlier termination or extension of the Stock Repurchase Program by the Board. Under the Stock Repurchase Program, SPFI may repurchase shares of common stock from time to time in privately negotiated transactions or the open market, including pursuant to Rule 10b5-1 trading plans, and in accordance with applicable regulations of the SEC. The extent to which SPFI repurchases its shares, and the timing of such repurchases, will depend upon a variety of factors, including the performance of SPFI’s stock price, general market and economic conditions, regulatory requirements, availability of funds, and other relevant considerations, as determined by SPFI. SPFI may, in its discretion, begin or terminate repurchases at any time prior to the Stock Repurchase Program’s expiration, without any prior notice. The Stock Repurchase Program does not obligate SPFI to repurchase any particular number or amount of shares of common stock.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2023

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

The consolidated financial statements in this Quarterly Report on Form 10-Q for the three months ended March 31, 2023 (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.

Basis of Presentation

Use of Estimates

Accounting Changes

The impact on the ACL resulting from the adoption of the CECL model is shown below.

(Dollars in thousands)	January 1, 2023
	Pre-Adoption		Impact of Adoption			Post-Adoption
Commercial real estate	$	13,029	$	827		$	13,856
Commercial – specialized		3,425		33			3,458
Commercial - general		9,215		(2,574	)		6,641
Consumer:
1-4 family residential		6,194		1,700			7,894
Auto loans		3,926		(332	)		3,594
Other consumer		1,376		(235	)		1,141
Construction		2,123		683			2,806

Total allowance for credit losses on loans	$	39,288	$	102		$	39,390

Allowance for credit losses for off-balance sheet exposures	$	580	$	1,160		$	1,740

In connection with the adoption of the CECL model, the Company revised certain accounting policies and implemented certain accounting policy elections.

ACL (Off-Balance Sheet Credit Exposures)

Acquired Loans

Goodwill and Other Intangible Assets

Earnings per Share

Segment Information

Subsequent Events

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Subsidiaries Information

The following were subsidiaries of SPFI as of March 31, 2023:

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

Impact on ACL from Adoption of the CECL

The impact on the ACL resulting from the adoption of the CECL model is shown below.

(Dollars in thousands)	January 1, 2023
	Pre-Adoption		Impact of Adoption			Post-Adoption
Commercial real estate	$	13,029	$	827		$	13,856
Commercial – specialized		3,425		33			3,458
Commercial - general		9,215		(2,574	)		6,641
Consumer:
1-4 family residential		6,194		1,700			7,894
Auto loans		3,926		(332	)		3,594
Other consumer		1,376		(235	)		1,141
Construction		2,123		683			2,806

Total allowance for credit losses on loans	$	39,288	$	102		$	39,390

Allowance for credit losses for off-balance sheet exposures	$	580	$	1,160		$	1,740

SECURITIES (Tables)

3 Months Ended

Mar. 31, 2023

SECURITIES [Abstract]

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

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses		Fair Value
March 31, 2023
Available for sale:
State and municipal	$	258,575	$	26	$	(27,424	)	$	—	$	231,177
Residential mortgage-backed securities		380,008		946		(53,431	)		—		327,523
Commercial mortgage-backed securities		48,843		—		(6,176	)		—		42,667
Commercial collateralized mortgage obligations		73,024		—		(5,473	)		—		67,551
Asset-backed and other amortizing securities		20,263		—		(1,594	)		—		18,669
Other securities		12,000		—		(1,008	)		—		10,992
	$	792,713	$	972	$	(95,106	)	$	—	$	698,579

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2022
Available for sale:
State and municipal	$	259,429	$	27	$	(34,401	)	$	225,055
Residential mortgage-backed securities		386,783		—		(57,938	)		328,845
Commercial mortgage-backed securities		49,161		—		(7,194	)		41,967
Commercial collateralized mortgage obligations		76,189		—		(551	)		75,638
Asset-backed and other amortizing securities		20,907		—		(1,813	)		19,094
Other securities		12,000		—		(888	)		11,112
	$	804,469	$	27	$	(102,785	)	$	701,711

Amortized Cost and Fair Value of Securities by Contractual Maturity

	Available for Sale
	Amortized Cost		Fair Value
Within 1 year	$	3,897	$	3,900
After 1 year through 5 years		9,454		9,250
After 5 years through 10 years		17,901		16,868
After 10 years		239,323		212,151
Other		522,138		456,410
	$	792,713	$	698,579

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

	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
March 31, 2023
State and municipal	$	6,903	$	24	$	216,567	$	27,400	$	223,470	$	27,424
Residential mortgage-backed securities		1		—		322,389		53,431		322,390		53,431
Commercial mortgage-backed securities		—		—		42,667		6,176		42,667		6,176
Commercial collateralized mortgage obligations		67,551		5,473		—		—		67,551		5,473
Asset-backed and other amortizing securities		—		—		18,669		1,594		18,669		1,594
Other securities		9,636		864		1,356		144		10,992		1,008
	$	84,091	$	6,361	$	601,648	$	88,745	$	685,739	$	95,106

December 31, 2022
State and municipal	$	162,746	$	23,538	$	57,675	$	10,863	$	220,421	$	34,401
Residential mortgage-backed securities		220,752		27,967		108,080		29,971		328,832		57,938
Commercial mortgage-backed securities		41,966		7,194		—		—		41,966		7,194
Commercial collateralized mortgage obligations		75,638		551		—		—		75,638		551
Asset-backed and other amortizing securities		19,094		1,813		—		—		19,094		1,813
Other securities		11,112		888		—		—		11,112		888
	$	531,308	$	61,951	$	165,755	$	40,834	$	697,063	$	102,785

LOANS HELD FOR INVESTMENT (Tables)

3 Months Ended

Mar. 31, 2023

LOANS HELD FOR INVESTMENT [Abstract]

Summary of Loans Held for Investment by Category

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

	March 31, 2023			December 31, 2022
Commercial real estate	$	926,018		$	919,358
Commercial - specialized		315,473			327,513
Commercial - general		510,917			484,783
Consumer:
1-4 family residential		485,396			460,124
Auto loans		321,309			321,476
Other consumer		81,413			81,308
Construction		148,114			153,519
		2,788,640			2,748,081
Allowance for credit losses on loans		(39,560	)		(39,288	)
Loans, net	$	2,749,080		$	2,708,793

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

	Beginning Balance		Impact of CECL Adoption			Provision for Credit Losses⁽¹⁾			Charge-offs			Recoveries		Ending Balance
For the three months ended March 31, 2023
Commercial real estate	$	13,029	$	827		$	(475	)	$	—		$	—	$	13,381
Commercial - specialized		3,425		33			(11	)		—			63		3,510
Commercial - general		9,215		(2,574	)		(237	)		(199	)		62		6,267
Consumer:
1-4 family residential		6,194		1,700			635			—			2		8,531
Auto loans		3,926		(332	)		298			(254	)		76		3,714
Other consumer		1,376		(235	)		68			(214	)		106		1,101
Construction		2,123		683			522			(272	)		—		3,056
	$	39,288	$	102		$	800		$	(939	)	$	309	$	39,560

	Beginning Balance		Provision for Credit 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
	$	42,098	$	(2,085	)	$	(657	)	$	293	$	39,649

	Individually Evaluated – Amortized Cost		Individually Evaluated – ACL
March 31, 2023
Commercial real estate	$	79	$	—
Commercial - specialized		—		—
Commercial - general		3,742		63
Consumer:
1-4 family residential		486		83
Auto loans		—		—
Other consumer		—		—
Construction		—		—
	$	4,307	$	146

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

	Recorded Investment				ACL for Loans
	Individually Evaluated		Collectively Evaluated		Individually Evaluated		Collectively Evaluated
December 31, 2022
Commercial real estate	$	—	$	919,358	$	—	$	13,029
Commercial - specialized		—		327,513		—		3,425
Commercial - general		3,350		481,433		22		9,193
Consumer:
1-4 family residential		742		459,382		18		6,176
Auto loans		—		321,476		—		3,926
Other consumer		—		81,308		—		1,376
Construction		1,014		152,505		245		1,878
	$	5,106	$	2,742,975	$	285	$	39,003

Impaired Loan Information

Impaired loan information at the date 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

December 31, 2022
Commercial real estate	$	—	$	—	$	—	$	—	$	—	$	551
Commercial - specialized		—		—		—		—		—		—
Commercial - general		3,350		799		2,551		3,350		22		4,214
Consumer:
1-4 family		742		486		256		742		18		1,167
Auto loans		—		—		—		—		—		—
Other consumer		—		—		—		—		—		—
Construction		1,014		686		328		1,014		245		507
	$	5,106	$	1,971	$	3,135	$	5,106	$	285	$	6,439

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		Nonaccrual with no ACL
March 31, 2023
Commercial real estate	$	2,236	$	19	$	79	$	79
Commercial - specialized		1,042		13		36		—
Commercial - general		753		74		3,671		3,141
Consumer:
1-4 Family residential		1,285		2,011		1,326		—
Auto loans		335		94		—		—
Other consumer		251		221		36		—
Construction		1,146		—		—		—
	$	7,048	$	2,432	$	5,148	$	3,220

	30-89 Days Past Due		90 Days or More Past Due		Nonaccrual
December 31, 2022
Commercial real estate	$	342	$	27	$	—
Commercial - specialized		25		13		38
Commercial - general		1,451		60		3,357
Consumer:
1-4 Family residential		1,389		1,653		1,356
Auto loans		707		85		—
Other consumer		1,487		149		37
Construction		550		—		1,014
	$	5,951	$	1,987	$	5,802

Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year

							Term Loans
					Amortized Cost Basis by Origination Year

(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total

Commercial real estate:
Pass	$	62,228	$	291,185	$	230,596	$	65,575	$	69,961	$	179,093	$	3,511	$	902,149
Special mention		—		—		—		—		—		—		—		—
Classified		—		19		117		1,841		870		21,022		—		23,869
Total commercial real estate loans	$	62,228	$	291,204	$	230,713	$	67,416	$	70,831	$	200,115	$	3,511	$	926,018
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial - specialized:
Pass	$	26,236	$	70,603	$	65,620	$	22,967	$	17,446	$	29,568	$	82,523	$	314,963
Special mention		—		—		—		—		—		—		—		—
Classified		—		—		183		245		19		63		—		510
Total commercial - specialized loans	$	26,236	$	70,603	$	65,803	$	23,212	$	17,465	$	29,631	$	82,523	$	315,473
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial - general:
Pass	$	28,675	$	150,325	$	102,064	$	41,549	$	19,139	$	79,283	$	54,664	$	475,699
Special mention		—		—		—		—		—		—		—		—
Classified		—		13,019		4,724		540		6,433		6,079		4,423		35,218
Total commercial - general loans	$	28,675	$	163,344	$	106,788	$	42,089	$	25,572	$	85,362	$	59,087	$	510,917
Current period gross charge-offs	$	—	$	—	$	25	$	10	$	18	$	146	$	—	$	199
Consumer: 1-4 family residential:

Pass	$	24,089	$	166,053	$	116,762	$	58,256	$	34,702	$	70,999	$	3,749	$	474,610
Special mention		—		—		—		—		—		—		—		—
Classified		—		154		919		1,831		4,356		3,526		—		10,786
Total consumer: 1-4 family residential loans	$	24,089	$	166,207	$	117,681	$	60,087	$	39,058	$	74,525	$	3,749	$	485,396
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer: auto loans:
Pass	$	32,574		170,405		71,132		26,400		13,730		6,741		—		320,982
Special mention		—		—		—		—		—		—		—		—
Classified		—		—		133		50		79		65		—		327
Total consumer: auto loans	$	32,574	$	170,405	$	71,265	$	26,450	$	13,809	$	6,806	$	—	$	321,309
Current period gross charge-offs	$	—	$	106	$	102	$	—	$	16	$	30	$	—	$	254

Consumer: other consumer:
Pass	$	7,117	$	38,896	$	16,431	$	5,320	$	4,009	$	7,866	$	1,574	$	81,213
Special mention		—		—		—		—		—		—		—		—
Classified		—		12		50		36		3		99		—		200
Total consumer: other consumer loans	$	7,117	$	38,908	$	16,481	$	5,356	$	4,012	$	7,965	$	1,574	$	81,413
Current period gross charge-offs	$	53	$	91	$	19	$	6	$	34	$	11	$	—	$	214

Construction:
Pass	$	6,565	$	102,556	$	26,638	$	270	$	—	$	—	$	12,085	$	148,114
Special mention		—		—		—		—		—		—		—		—
Classified		—		—		—		—		—		—		—		—
Total construction loans	$	6,565	$	102,556	$	26,638	$	270	$	—	$	—	$	12,085	$	148,114
Current period gross charge-offs	$	—	$	—	$	272	$	—	$	—	$	—	$	—	$	272

The following table summarizes loans by credit quality indicator at December 31, 2022 (dollars in thousands):

	Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate	$	893,312	$	—	$	26,046	$	—	$	919,358
Commercial - specialized		326,987		—		526		—		327,513
Commercial - general		451,639		—		33,144		—		484,783
Consumer:
1-4 family residential		450,034		—		10,090		—		460,124
Auto loans		321,158		—		318		—		321,476
Other consumer		81,109		—		199		—		81,308
Construction		151,995		—		1,524		—		153,519
	$	2,676,234	$	—	$	71,847	$	—	$	2,748,081

Amortized Cost Basis of Loans Modified to Borrowers Experiencing Financial Difficulty and Financial Effects of Loan Modifications

	Payment Delay		Term Extension		Interest Rate Reduction		Term Extension and Interest Rate Reduction		Total Class of Financing Receivable
March 31, 2023
Commercial real estate	$	—	$	—	$	—	$	—		0.00	%
Commercial - specialized		—		—		—		—		0.00	%
Commercial - general		—		2,999		—		42		0.60	%
Consumer:
1-4 family		—		199		—		—		0.04	%
Auto loans		—		40		—		—		0.01	%
Other consumer		—		—		—		—		0.00	%
Construction		—		—		—		—		0.00	%
	$	—	$	3,238	$	—	$	42		0.12	%

	30-89 Days Past Due		90 Days or More Past Due and Still Accruing		Nonaccrual
March 31, 2023
Commercial real estate	$	—	$	—	$	—
Commercial - specialized		—		—		—
Commercial - general		—		—		—
Consumer:
1-4 Family residential		—		—		—
Auto loans		40		—		—
Other consumer		—		—		—
Construction		—		—		—
	$	40	$	—	$	—

	Principal Forgiveness		Weighted- Average Interest Rate Reduction			Weighted- Average Term Extension (Months)
March 31, 2023
Commercial real estate	$	—		0.00	%		—
Commercial - specialized		—		0.00	%		—
Commercial - general		—		0.25	%		43
Consumer:
1-4 Family residential		—		0.00	%		10
Auto loans		—		0.00	%		15
Other consumer		—		0.00	%		—
Construction		—		0.00	%		—
	$	—		0.25	%		41

GOODWILL AND INTANGIBLES (Tables)

3 Months Ended

Mar. 31, 2023

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, 2023			December 31, 2022
Amortized intangible assets
Core deposit intangible	$	6,679		$	6,679
Less: Accumulated amortization		(3,633	)		(3,420	)
		3,046			3,259

Other intangibles		2,972			2,972
Less: Accumulated amortization		(2,030	)		(1,882	)
		942			1,090
Other intangible assets, net	$	3,988		$	4,349

MORTGAGE SERVICING RIGHTS (Tables)

3 Months Ended

Mar. 31, 2023

MORTGAGE SERVICING RIGHTS [Abstract]

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

	Three Months Ended March 31,
	2023			2022
Beginning balance	$	27,474		$	19,700
Additions		271			1,250
Valuation adjustment		(1,950	)		4,475
Ending balance	$	25,795		$	25,425

	March 31,			December 31,
		2023			2022
Mortgage loans serviced for others	$	2,037,390		$	2,046,490
Mortgage servicing rights assets as a percentage of serviced mortgage loans		1.27	%		1.34	%

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,
	2023			2022
Weighted average constant prepayment rate		7.44	%		7.47	%
Weighted average discount rate		9.65	%		9.15	%
Weighted average life in years		7.93			7.91

STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2023

STOCK-BASED COMPENSATION [Abstract]

Summary of Stock Option Activity

A summary of activity in the Plan during 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, 2023
Outstanding at beginning of year:		1,354,189		$	16.11			$	7,533
Granted		47,816			27.46				—
Exercised		(25,521	)		12.75				(221	)
Forfeited		(1,125	)		20.19				(2	)
Expired		—			—				—

Balance, March 31, 2023		1,375,359		$	16.57		5.59	$	7,310

Exercisable at end of period		1,146,610		$	15.31		5.07	$	7,096

Vested at end of period		1,146,610		$	15.31		5.07	$	7,096

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:

	Three Months Ended March 31,
	2023		2022
Expected volatility	39.13% to 39.68%		40.20% to 40.29%
Expected dividend yield		1.74% to 1.90%		1.30%
Expected term (years)	6.1 to 6.3		6.1 to 6.3
Risk-free interest rate	3.91% to 3.98%		1.56% to 1.95%
Weighted average grant date fair value	$	10.26	$	10.54

Summary of Activity of Restricted Stock Units

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

	Number of Shares			Weighted-Average Grant Date Fair Value
Three Months Ended March 31, 2023
Outstanding at beginning of year:		84,342		$	26.76
Granted		85,127			25.33
Vested		(37,319	)		24.30
Forfeited		(1,120	)		24.16

Balance, March 31, 2023		131,030		$	26.56

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

3 Months Ended

Mar. 31, 2023

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, 2023		December 31, 2022
Commitments to grant loans and unfunded commitments under lines of credit	$	720,851	$	682,296
Standby letters of credit		12,821		13,864

LEASES (Tables)

3 Months Ended

Mar. 31, 2023

LEASES [Abstract]

Balance Sheet Components of Leases

The balance sheet components of the Company’s leases are as follows (in thousands):

	March 31, 2023		December 31, 2022
Operating lease right of use assets (included in Other assets)	$	7,871	$	7,938
Operating lease liabilities (included in Accrued expenses and other liabilities)		8,829		8,897

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases is as follows (in thousands):

	Three Months Ended March 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	503	$	—
Right-of-use assets obtained in exchange for new lease obligations:
Operating leases	$	318	$	—

Maturities of Operating Lease Liabilities

Future undiscounted lease payments at March 31, 2023, under operating lease agreements, are presented below (in thousands).

2023	$	1,443
2024		1,501
2025		1,102
2026		1,101
2027		1,063
Thereafter		5,050
Total minimum lease payments		11,260
Less: Amount representing interest		(2,431	)
Lease liabilities	$	8,829

CAPITAL AND REGULATORY MATTERS (Tables)

3 Months Ended

Mar. 31, 2023

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 Framework
	Amount		Ratio			Amount		Ratio			Amount		Ratio
March 31, 2023
Total Capital to Risk Weighted Assets:
Consolidated	$	567,364		16.70	%	$	356,699		10.50	%		N/A		N/A
City Bank		461,457		13.59	%		356,569		10.50	%	$	339,589		10.00	%

Tier I Capital to Risk Weighted Assets:
Consolidated		449,847		13.24	%		288,756		8.50	%		N/A		N/A
City Bank		419,948		12.37	%		288,651		8.50	%		271,671		8.00	%

Common Equity Tier 1 to Risk Weighted Assets:
Consolidated		404,847		11.92	%		237,799		7.00	%		N/A		N/A
City Bank		419,948		12.37	%		237,712		7.00	%		220,733		6.50	%

Tier I Capital to Average Assets:
Consolidated		449,847		11.22	%		161,253		4.00	%		N/A		N/A
City Bank		419,948		10.48	%		161,166		4.00	%		200,282		5.00	%

December 31, 2022
Total Capital to Risk Weighted Assets:
Consolidated	$	559,094		16.58	%	$	354,045		10.50	%		N/A		N/A
City Bank		454,427		13.48	%		353,967		10.50	%	$	337,112		10.00	%

Tier I Capital to Risk Weighted Assets:
Consolidated		443,265		13.15	%		286,608		8.50	%		N/A		N/A
City Bank		414,559		12.30	%		286,545		8.50	%		269,689		8.00	%

Common Equity Tier 1 to Risk Weighted Assets:
Consolidated		398,265		11.81	%		236,030		7.00	%		N/A		N/A
City Bank		414,559		12.30	%		235,978		7.00	%		219,122		6.50	%

Tier I Capital to Average Assets:
Consolidated		443,265		11.03	%		161,662		4.00	%		N/A		N/A
City Bank		414,559		10.32	%		161,574		4.00	%		200,774		5.00	%

DERIVATIVES (Tables)

3 Months Ended

Mar. 31, 2023

Mortgage Banking [Member]

Derivative [Line Items]

Net Gains (Losses) Relating to Derivative Instruments

		Three Months Ended
		March 31,
	Location	2023			2022
Gain (loss) on mortgage banking derivatives	Net gain (loss) on sales of loans	$	(281	)	$	(1,093	)

Fair Value of Derivatives in Consolidated Balance Sheets

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

	March 31, 2023				December 31, 2022
	Notional Amount		Fair Value		Notional Amount		Fair Value

Included in other assets:
Forward contracts related to mortgage loans held for sale	$	—	$	—	$	23,500	$	186
Interest rate lock commitments		42,188		978		27,348		369

Included in other liabilities:
Forward contracts related to mortgage loans held for sale	$	35,244	$	409	$	5,615	$	128

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 Company’s Consolidated Balance Sheets at the dates indicated (dollars in thousands):

	March 31, 2023				December 31, 2022
	Notional Amount		Fair Value		Notional Amount		Fair Value

Included in other liabilities:
Interest rate swaps related to fixed rate loans	$	—	$	—	$	—	$	—
Interest rate swaps related to state and municipal securities		—		—		—		—

Included in other assets:
Interest rate swaps related to fixed rate loans	$	9,348	$	482	$	9,493	$	482
Interest rate swaps related to state and municipal securities		123,760		17,471		123,760		20,125

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 Company’s Consolidated Statements of Comprehensive Income (Loss) for the periods indicated (dollars in thousands):

		Three Months Ended
		March 31,
Interest Rate Contracts	Location	2023			2022
Change in fair value of interest rate swaps hedging investment securities	Other noninterest expense	$	(2,654	)	$	6,749
Change in fair value of hedged investment securities	Other noninterest expense		2,638			(6,899	)
Change in fair value of interest rate swaps hedging fixed rate loans	Interest income - Loans	$	—		$	458
Change in fair value of hedged fixed rate loans	Interest income - Loans		—			(463	)

EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2023

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,
	2023		2022
Net income	$	9,244	$	14,278

Weighted average common shares outstanding - basic		17,046,713		17,716,136
Effect of dilutive securities:
Stock-based compensation awards		514,043		676,261
Weighted average common shares outstanding - diluted		17,560,756		18,392,397

Basic earnings per share	$	0.54	$	0.81
Diluted earnings per share	$	0.53	$	0.78

FAIR VALUE DISCLOSURES (Tables)

3 Months Ended

Mar. 31, 2023

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, 2023
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
State and municipal	$	—	$	231,177		$	—	$	231,177
Residential mortgage-backed securities		—		327,523			—		327,523
Commercial mortgage-backed securities		—		42,667			—		42,667
Collateralized mortgage obligations		—		67,551			—		67,551
Asset-backed and other amortizing securities		—		18,669			—		18,669
Other securities		—		10,992			—		10,992
Loans held for sale (mandatory)		—		11,576			—		11,576
Mortgage servicing rights		—		—			25,795		25,795
Asset derivatives		—		18,931			—		18,931
Liability derivatives		—		(409	)		—		(409	)

Assets measured at fair value on a non-recurring basis:
Loans held for investment		—		—			4,161		4,161

December 31, 2022
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
State and municipal	$	—	$	225,055		$	—	$	225,055
Residential mortgage-backed securities		—		328,845			—		328,845
Commercial mortgage-backed securities		—		41,967			—		41,967
Collateralized mortgage obligations		—		75,638			—		75,638
Asset-backed and other amortizing securities		—		19,094			—		19,094
Other securities		—		11,112			—		11,112
Loans held for sale (mandatory)		—		10,038			—		10,038
Mortgage servicing rights		—		—			27,474		27,474
Asset derivatives		—		21,162			—		21,162
Liability derivatives		—		(128	)		—		(128	)

Assets measured at fair value on a non-recurring basis:
Loans held for investment		—		—			4,821		4,821

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, 2023
Non-recurring:
Loans held for investment	$	4,161	Third party appraisals or inspections	Collateral discounts and selling costs		20%-100	%
Recurring:
Mortgage servicing rights		25,795	Discounted cash flows	Conditional prepayment rate		7.44	%
				Discount rate		9.65	%

December 31, 2022
Non-recurring:
Loans held for investment	$	4,821	Third party appraisals or inspections	Collateral discounts and selling costs		20%-100	%
Recurring:
Mortgage servicing rights		27,474	Discounted cash flows	Conditional prepayment rate		7.47	%
				Discount rate		9.15	%

Estimated Fair Values, and Related Carrying Amounts of Financial Instruments

	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value

March 31, 2023
Financial assets:
Cash and cash equivalents	$	328,002	$	328,002	$	—	$	—	$	328,002
Loans held for investment, net		2,749,080		—		—		2,697,002		2,697,002
Loans held for sale (best efforts)		8,872		—		9,070		—		9,070
Accrued interest receivable		14,421		—		14,421		—		14,421

Financial liabilities:
Deposits	$	3,508,054	$	—	$	3,507,917	$	—	$	3,507,917
Accrued interest payable		2,754		—		2,754		—		2,754
Junior subordinated deferrable interest debentures		46,393		—		32,395		—		32,395
Subordinated debt securities		76,007		—		64,498		—		64,498

	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value

December 31, 2022
Financial assets:
Cash and cash equivalents	$	234,883	$	234,883	$	—	$	—	$	234,883
Loans held for investment, net		2,708,793		—		—		2,662,609		2,662,609
Loans held for sale (best efforts)		20,365		—		20,745		—		20,745
Accrued interest receivable		16,432		—		16,432		—		16,432

Financial liabilities:
Deposits	$	3,406,430	$	—	$	3,405,222	$	—	$	3,405,222
Accrued interest payable		2,836		—		2,836		—		2,836
Junior subordinated deferrable interest debentures		46,393		—		34,606		—		34,606
Subordinated debt securities		75,961		—		70,835		—		70,835

- 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) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($) Segment	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Leases [Abstract]
Retained earnings	$ 298,300	$ 292,261
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans	$ 39,560	39,288	$ 39,649	$ 42,098
Securities [Abstract]
Number of days principal or interest is in default for securities to be placed on nonaccrual status	90 days
Loans [Abstract]
Number of days principal or interest payments are past due for loans to be placed on nonaccrual status	90 days
Allowance for Loan Losses [Abstract]
Period for estimate of expected credit loss for each loan	1 year
Period of macroeconomic variables forecast	1 year
Off-Balance Sheet Credit Exposures [Abstract]
Period of rolling average of historical usage used for determining utilization rates	2 years
Goodwill and Other Intangible Assets [Abstract]
Goodwill impairment loss	$ 0	0
Segment Information [Abstract]
Number of reportable segments \| Segment	2
Pre-Adoption [Member]
Accounting Standards Update and Change in Accounting Principle [Abstract]
ACL for off-balance sheet credit exposures		580
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		39,288
Allowance for credit losses for off-balance sheet exposures		580
Commercial Real Estate [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans	$ 13,381	13,029	14,621	17,245
Commercial Real Estate [Member] \| Pre-Adoption [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		13,029
Commercial [Member] \| Specialized [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans	3,510	3,425	3,275	4,363
Commercial [Member] \| Specialized [Member] \| Pre-Adoption [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		3,425
Commercial [Member] \| General [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans	6,267	9,215	9,940	8,466
Commercial [Member] \| General [Member] \| Pre-Adoption [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		9,215
Consumer [Member] \| 1-4 Family Residential [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans	8,531	6,194	4,931	5,268
Consumer [Member] \| 1-4 Family Residential [Member] \| Pre-Adoption [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		6,194
Consumer [Member] \| Auto Loans [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans	3,714	3,926	3,681	3,653
Consumer [Member] \| Auto Loans [Member] \| Pre-Adoption [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		3,926
Consumer [Member] \| Other Consumer [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans	1,101	1,376	1,384	1,357
Consumer [Member] \| Other Consumer [Member] \| Pre-Adoption [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		1,376
Construction [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans	$ 3,056	2,123	$ 1,817	$ 1,746
Construction [Member] \| Pre-Adoption [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		2,123
ASU 2016-13 [Member]
Accounting Standards Update and Change in Accounting Principle [Abstract]
ACL for off-balance sheet credit exposures		1,740
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		39,390
Allowance for credit losses for off-balance sheet exposures		1,740
ASU 2016-13 [Member] \| Impact of Adoption [Member]
Accounting Standards Update and Change in Accounting Principle [Abstract]
ACL for off-balance sheet credit exposures		1,160
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		102
Allowance for credit losses for off-balance sheet exposures		1,160
ASU 2016-13 [Member] \| Commercial Real Estate [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		13,856
ASU 2016-13 [Member] \| Commercial Real Estate [Member] \| Impact of Adoption [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		827
ASU 2016-13 [Member] \| Commercial [Member] \| Specialized [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		3,458
ASU 2016-13 [Member] \| Commercial [Member] \| Specialized [Member] \| Impact of Adoption [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		33
ASU 2016-13 [Member] \| Commercial [Member] \| General [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		6,641
ASU 2016-13 [Member] \| Commercial [Member] \| General [Member] \| Impact of Adoption [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		(2,574)
ASU 2016-13 [Member] \| Consumer [Member] \| 1-4 Family Residential [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		7,894
ASU 2016-13 [Member] \| Consumer [Member] \| 1-4 Family Residential [Member] \| Impact of Adoption [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		1,700
ASU 2016-13 [Member] \| Consumer [Member] \| Auto Loans [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		3,594
ASU 2016-13 [Member] \| Consumer [Member] \| Auto Loans [Member] \| Impact of Adoption [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		(332)
ASU 2016-13 [Member] \| Consumer [Member] \| Other Consumer [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		1,141
ASU 2016-13 [Member] \| Consumer [Member] \| Other Consumer [Member] \| Impact of Adoption [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		(235)
ASU 2016-13 [Member] \| Construction [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		2,806
ASU 2016-13 [Member] \| Construction [Member] \| Impact of Adoption [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		683
Minimum [Member]
Allowance for Loan Losses [Abstract]
Adjusted period for reasonable and supportable economic forecast	1 year
Maximum [Member]
Allowance for Loan Losses [Abstract]
Adjusted period for reasonable and supportable economic forecast	2 years
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
Core Deposit Intangible [Member] \| Maximum [Member]
Goodwill and Other Intangible Assets [Abstract]
Estimated useful lives	10 years
Cumulative Effect, Period of Adoption, Adjustment [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		102
Cumulative Effect, Period of Adoption, Adjustment [Member] \| Commercial Real Estate [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		827
Cumulative Effect, Period of Adoption, Adjustment [Member] \| Commercial [Member] \| Specialized [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		33
Cumulative Effect, Period of Adoption, Adjustment [Member] \| Commercial [Member] \| General [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		(2,574)
Cumulative Effect, Period of Adoption, Adjustment [Member] \| Consumer [Member] \| 1-4 Family Residential [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		1,700
Cumulative Effect, Period of Adoption, Adjustment [Member] \| Consumer [Member] \| Auto Loans [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		(332)
Cumulative Effect, Period of Adoption, Adjustment [Member] \| Consumer [Member] \| Other Consumer [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		(235)
Cumulative Effect, Period of Adoption, Adjustment [Member] \| Construction [Member]
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		683
Cumulative Effect, Period of Adoption, Adjustment [Member] \| ASU 2016-13 [Member]
Leases [Abstract]
Retained earnings		(997)
Accounting Standards Update and Change in Accounting Principle [Abstract]
ACL for off-balance sheet credit exposures		1,200
Adoption Impact on ACL for CECL [Abstract]
Total allowance for credit losses on loans		100
Allowance for credit losses for off-balance sheet exposures		$ 1,200

SECURITIES, Amortized Cost and Fair Value of Securities with Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Available for sale [Abstract]
Amortized cost	$ 792,713	$ 804,469
Gross unrealized gains	972	27
Gross unrealized losses	(95,106)	(102,785)
Allowance for credit losses	0
Fair value	698,579	701,711
State and Municipal [Member]
Available for sale [Abstract]
Amortized cost	258,575	259,429
Gross unrealized gains	26	27
Gross unrealized losses	(27,424)	(34,401)
Allowance for credit losses	0
Fair value	231,177	225,055
Residential Mortgage-backed Securities [Member]
Available for sale [Abstract]
Amortized cost	380,008	386,783
Gross unrealized gains	946	0
Gross unrealized losses	(53,431)	(57,938)
Allowance for credit losses	0
Fair value	327,523	328,845
Commercial Mortgage-backed Securities [Member]
Available for sale [Abstract]
Amortized cost	48,843	49,161
Gross unrealized gains	0	0
Gross unrealized losses	(6,176)	(7,194)
Allowance for credit losses	0
Fair value	42,667	41,967
Commercial Collateralized Mortgage Obligations [Member]
Available for sale [Abstract]
Amortized cost	73,024	76,189
Gross unrealized gains	0	0
Gross unrealized losses	(5,473)	(551)
Allowance for credit losses	0
Fair value	67,551	75,638
Asset-backed and Other Amortizing Securities [Member]
Available for sale [Abstract]
Amortized cost	20,263	20,907
Gross unrealized gains	0	0
Gross unrealized losses	(1,594)	(1,813)
Allowance for credit losses	0
Fair value	18,669	19,094
Other Securities [Member]
Available for sale [Abstract]
Amortized cost	12,000	12,000
Gross unrealized gains	0	0
Gross unrealized losses	(1,008)	(888)
Allowance for credit losses	0
Fair value	$ 10,992	$ 11,112

SECURITIES, Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Available for Sale, Amortized Cost [Abstract]
Within 1 year	$ 3,897
After 1 year through 5 years	9,454
After 5 years through 10 years	17,901
After 10 years	239,323
Other	522,138
Amortized cost	792,713	$ 804,469
Available for Sale, Fair Value [Abstract]
Within 1 year	3,900
After 1 year through 5 years	9,250
After 5 years through 10 years	16,868
After 10 years	212,151
Other	456,410
Fair value	$ 698,579	$ 701,711

SECURITIES, Securities Transferred and Securities Pledged (Details) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($) Security	Dec. 31, 2022 USD ($) 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 \| $	$ 496.2	$ 464.1

SECURITIES, Securities with Unrealized Losses, Available for Sale (Details) $ in Thousands	Mar. 31, 2023 USD ($) Security	Dec. 31, 2022 USD ($)
Available for sale, Fair Value [Abstract]
Less than 12 months	$ 84,091	$ 531,308
12 months or more	601,648	165,755
Total	685,739	697,063
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	6,361	61,951
12 months or more	88,745	40,834
Total	$ 95,106	102,785
Number of securities with an unrealized loss \| Security	161
State and Municipal [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	$ 6,903	162,746
12 months or more	216,567	57,675
Total	223,470	220,421
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	24	23,538
12 months or more	27,400	10,863
Total	27,424	34,401
Residential Mortgage-backed Securities [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	1	220,752
12 months or more	322,389	108,080
Total	322,390	328,832
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	0	27,967
12 months or more	53,431	29,971
Total	53,431	57,938
Commercial Mortgage-backed Securities [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	0	41,966
12 months or more	42,667	0
Total	42,667	41,966
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	0	7,194
12 months or more	6,176	0
Total	6,176	7,194
Commercial Collateralized Mortgage Obligations [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	67,551	75,638
12 months or more	0	0
Total	67,551	75,638
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	5,473	551
12 months or more	0	0
Total	5,473	551
Asset-backed and Other Amortizing Securities [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	0	19,094
12 months or more	18,669	0
Total	18,669	19,094
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	0	1,813
12 months or more	1,594	0
Total	1,594	1,813
Other Securities [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	9,636	11,112
12 months or more	1,356	0
Total	10,992	11,112
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	864	888
12 months or more	144	0
Total	$ 1,008	$ 888

LOANS HELD FOR INVESTMENT, Summary of Loans Held for Investment by Category (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) Category	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Summary of Loans Held for Investment by Category [Abstract]
Loans, gross	$ 2,788,640	$ 2,748,081
Allowance for credit losses on loans	(39,560)	(39,288)	$ (39,649)	$ (42,098)
Loans held for investment, net	2,749,080	2,708,793
Commercial Real Estate [Member]
Summary of Loans Held for Investment by Category [Abstract]
Loans, gross	926,018	919,358
Allowance for credit losses on loans	$ (13,381)	(13,029)	(14,621)	(17,245)
Commercial [Member]
Summary of Loans Held for Investment by Category [Abstract]
Number of sub-categories of loans \| Category	2
Commercial [Member] \| Specialized [Member]
Summary of Loans Held for Investment by Category [Abstract]
Loans, gross	$ 315,473	327,513
Allowance for credit losses on loans	(3,510)	(3,425)	(3,275)	(4,363)
Commercial [Member] \| General [Member]
Summary of Loans Held for Investment by Category [Abstract]
Loans, gross	510,917	484,783
Allowance for credit losses on loans	(6,267)	(9,215)	(9,940)	(8,466)
Consumer [Member] \| 1-4 Family Residential [Member]
Summary of Loans Held for Investment by Category [Abstract]
Loans, gross	485,396	460,124
Allowance for credit losses on loans	(8,531)	(6,194)	(4,931)	(5,268)
Consumer [Member] \| Auto Loans [Member]
Summary of Loans Held for Investment by Category [Abstract]
Loans, gross	321,309	321,476
Allowance for credit losses on loans	(3,714)	(3,926)	(3,681)	(3,653)
Consumer [Member] \| Other Consumer [Member]
Summary of Loans Held for Investment by Category [Abstract]
Loans, gross	81,413	81,308
Allowance for credit losses on loans	(1,101)	(1,376)	(1,384)	(1,357)
Construction [Member]
Summary of Loans Held for Investment by Category [Abstract]
Loans, gross	148,114	153,519
Allowance for credit losses on loans	$ (3,056)	$ (2,123)	$ (1,817)	$ (1,746)

LOANS HELD FOR INVESTMENT, Activity in Allowance for Credit Losses (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2023

Mar. 31, 2022

Dec. 31, 2022

LOANS HELD FOR INVESTMENT [Abstract]

Ratio of allowance for credit losses to loans held for investment

1.42%

1.43%

Allowance for Credit Losses [Roll Forward]

Beginning Balance

$ 39,288

$ 42,098

Provision for credit losses

800

^[1]

(2,085)

Charge-offs

(939)

(657)

Recoveries

309

293

Ending Balance

39,560

39,649

Provision for credit loss on loans including off-balance sheet credit exposures

1,010

(2,085)

Provision for off-balance sheet credit exposures

210

Changes in ACL impacted by net charge offs

630

Impact of CECL Adoption [Member]

Allowance for Credit Losses [Roll Forward]

Beginning Balance

102

Commercial Real Estate [Member]

Allowance for Credit Losses [Roll Forward]

Beginning Balance

13,029

17,245

Provision for credit losses

(475)

^[1]

(2,649)

Charge-offs

Recoveries

Ending Balance

13,381

14,621

Commercial Real Estate [Member] | Impact of CECL Adoption [Member]

Allowance for Credit Losses [Roll Forward]

Beginning Balance

827

Commercial [Member] | Specialized [Member]

Allowance for Credit Losses [Roll Forward]

Beginning Balance

3,425

4,363

Provision for credit losses

(11)

^[1]

(1,083)

Charge-offs

(39)

Recoveries

Ending Balance

3,510

3,275

Commercial [Member] | Specialized [Member] | Impact of CECL Adoption [Member]

Allowance for Credit Losses [Roll Forward]

Beginning Balance

Commercial [Member] | General [Member]

Allowance for Credit Losses [Roll Forward]

Beginning Balance

9,215

8,466

Provision for credit losses

(237)

^[1]

1,659

Charge-offs

(199)

(307)

Recoveries

122

Ending Balance

6,267

9,940

Commercial [Member] | General [Member] | Impact of CECL Adoption [Member]

Allowance for Credit Losses [Roll Forward]

Beginning Balance

(2,574)

Consumer [Member] | 1-4 Family Residential [Member]

Allowance for Credit Losses [Roll Forward]

Beginning Balance

6,194

5,268

Provision for credit losses

635

^[1]

(298)

Charge-offs

(40)

Recoveries

Ending Balance

8,531

4,931

Consumer [Member] | 1-4 Family Residential [Member] | Impact of CECL Adoption [Member]

Allowance for Credit Losses [Roll Forward]

Beginning Balance

1,700

Consumer [Member] | Auto Loans [Member]

Allowance for Credit Losses [Roll Forward]

Beginning Balance

3,926

3,653

Provision for credit losses

298

^[1]

Charge-offs

(254)

(86)

Recoveries

Ending Balance

3,714

3,681

Consumer [Member] | Auto Loans [Member] | Impact of CECL Adoption [Member]

Allowance for Credit Losses [Roll Forward]

Beginning Balance

(332)

Consumer [Member] | Other Consumer [Member]

Allowance for Credit Losses [Roll Forward]

Beginning Balance

1,376

1,357

Provision for credit losses

^[1]

147

Charge-offs

(214)

(185)

Recoveries

106

Ending Balance

1,101

1,384

Consumer [Member] | Other Consumer [Member] | Impact of CECL Adoption [Member]

Allowance for Credit Losses [Roll Forward]

Beginning Balance

(235)

Construction [Member]

Allowance for Credit Losses [Roll Forward]

Beginning Balance

2,123

1,746

Provision for credit losses

522

^[1]

Charge-offs

(272)

Recoveries

Ending Balance

3,056

$ 1,817

Construction [Member] | Impact of CECL Adoption [Member]

Allowance for Credit Losses [Roll Forward]

Beginning Balance

$ 683

[1]	The $1.0 million provision for credit loss on the consolidated statement of comprehensive income (loss) includes a $800 thousand provision for credit losses on loans and a $210 thousand provision for off-balance sheet credit exposures for the three months ended March 31, 2023.

LOANS HELD FOR INVESTMENT, Recorded Investment in Loans and Related ACL on Loans Recorded Disaggregated (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	$ 4,307	$ 5,106
Collectively Evaluated - Probability of Default		2,742,975
ACL for Loans [Abstract]
Individually Evaluated - Fair Value of Collateral	146	285
Collectively Evaluated - Probability of Default		39,003
Commercial Real Estate [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	79	0
Collectively Evaluated - Probability of Default		919,358
ACL for Loans [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Collectively Evaluated - Probability of Default		13,029
Commercial [Member] \| Specialized [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Collectively Evaluated - Probability of Default		327,513
ACL for Loans [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Collectively Evaluated - Probability of Default		3,425
Commercial [Member] \| General [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	3,742	3,350
Collectively Evaluated - Probability of Default		481,433
ACL for Loans [Abstract]
Individually Evaluated - Fair Value of Collateral	63	22
Collectively Evaluated - Probability of Default		9,193
Consumer [Member] \| 1-4 Family Residential [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	486	742
Collectively Evaluated - Probability of Default		459,382
ACL for Loans [Abstract]
Individually Evaluated - Fair Value of Collateral	83	18
Collectively Evaluated - Probability of Default		6,176
Consumer [Member] \| Auto Loans [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Collectively Evaluated - Probability of Default		321,476
ACL for Loans [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Collectively Evaluated - Probability of Default		3,926
Consumer [Member] \| Other Consumer [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Collectively Evaluated - Probability of Default		81,308
ACL for Loans [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Collectively Evaluated - Probability of Default		1,376
Construction [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	1,014
Collectively Evaluated - Probability of Default		152,505
ACL for Loans [Abstract]
Individually Evaluated - Fair Value of Collateral	$ 0	245
Collectively Evaluated - Probability of Default		$ 1,878

LOANS HELD FOR INVESTMENT, Impaired Loan Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	$ 5,106
Recorded Investment [Abstract]
Recorded Investment With No Allowance	1,971
Recorded Investment With Allowance	3,135
Total Recorded Investment	5,106
Related Allowance	285
Average Recorded Investment	6,439
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	0
Recorded Investment [Abstract]
Recorded Investment With No Allowance	0
Recorded Investment With Allowance	0
Total Recorded Investment	0
Related Allowance	0
Average Recorded Investment	551
Commercial [Member] \| Specialized [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	0
Recorded Investment [Abstract]
Recorded Investment With No Allowance	0
Recorded Investment With Allowance	0
Total Recorded Investment	0
Related Allowance	0
Average Recorded Investment	0
Commercial [Member] \| General [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	3,350
Recorded Investment [Abstract]
Recorded Investment With No Allowance	799
Recorded Investment With Allowance	2,551
Total Recorded Investment	3,350
Related Allowance	22
Average Recorded Investment	4,214
Consumer [Member] \| 1-4 Family Residential [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	742
Recorded Investment [Abstract]
Recorded Investment With No Allowance	486
Recorded Investment With Allowance	256
Total Recorded Investment	742
Related Allowance	18
Average Recorded Investment	1,167
Consumer [Member] \| Auto Loans [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	0
Recorded Investment [Abstract]
Recorded Investment With No Allowance	0
Recorded Investment With Allowance	0
Total Recorded Investment	0
Related Allowance	0
Average Recorded Investment	0
Consumer [Member] \| Other Consumer [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	0
Recorded Investment [Abstract]
Recorded Investment With No Allowance	0
Recorded Investment With Allowance	0
Total Recorded Investment	0
Related Allowance	0
Average Recorded Investment	0
Construction [Member]
Impaired Loan Information [Abstract]
Unpaid Contractual Principal Balance	1,014
Recorded Investment [Abstract]
Recorded Investment With No Allowance	686
Recorded Investment With Allowance	328
Total Recorded Investment	1,014
Related Allowance	245
Average Recorded Investment	$ 507

LOANS HELD FOR INVESTMENT, Age Analysis on Accruing Past-due Loans and Nonaccrual Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	$ 2,788,640	$ 2,748,081
Nonaccrual	5,148	5,802
Nonaccrual with no ACL	3,220
Nonaccrual mortgage loans held for sale	0	0
30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	7,048	5,951
90 Days or More Past Due and Still Accruing [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	2,432	1,987
Commercial Real Estate [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	926,018	919,358
Nonaccrual	79	0
Nonaccrual with no ACL	79
Commercial Real Estate [Member] \| 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	2,236	342
Commercial Real Estate [Member] \| 90 Days or More Past Due and Still Accruing [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	19	27
Commercial [Member] \| Specialized [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	315,473	327,513
Nonaccrual	36	38
Nonaccrual with no ACL	0
Commercial [Member] \| Specialized [Member] \| 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	1,042	25
Commercial [Member] \| Specialized [Member] \| 90 Days or More Past Due and Still Accruing [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	13	13
Commercial [Member] \| General [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	510,917	484,783
Nonaccrual	3,671	3,357
Nonaccrual with no ACL	3,141
Commercial [Member] \| General [Member] \| 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	753	1,451
Commercial [Member] \| General [Member] \| 90 Days or More Past Due and Still Accruing [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	74	60
Consumer [Member] \| 1-4 Family Residential [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	485,396	460,124
Nonaccrual	1,326	1,356
Nonaccrual with no ACL	0
Consumer [Member] \| 1-4 Family Residential [Member] \| 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	1,285	1,389
Consumer [Member] \| 1-4 Family Residential [Member] \| 90 Days or More Past Due and Still Accruing [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	2,011	1,653
Consumer [Member] \| Auto Loans [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	321,309	321,476
Nonaccrual	0	0
Nonaccrual with no ACL	0
Consumer [Member] \| Auto Loans [Member] \| 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	335	707
Consumer [Member] \| Auto Loans [Member] \| 90 Days or More Past Due and Still Accruing [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	94	85
Consumer [Member] \| Other Consumer [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	81,413	81,308
Nonaccrual	36	37
Nonaccrual with no ACL	0
Consumer [Member] \| Other Consumer [Member] \| 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	251	1,487
Consumer [Member] \| Other Consumer [Member] \| 90 Days or More Past Due and Still Accruing [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	221	149
Construction [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	148,114	153,519
Nonaccrual	0	1,014
Nonaccrual with no ACL	0
Construction [Member] \| 30-89 Days Past Due [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	1,146	550
Construction [Member] \| 90 Days or More Past Due and Still Accruing [Member]
Age Analysis on Accruing Past-due Loans and Nonaccrual Loans [Abstract]
Past Due	$ 0	$ 0

LOANS HELD FOR INVESTMENT, Amortized Cost Basis of Loans by Credit Quality Indicator and Origination Year (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) Point	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Credit Quality Indicators [Abstract]
Number of points on a grading scale for loans \| Point	13
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans	$ 2,788,640		$ 2,748,081
Current Period Gross Charge-offs [Abstract]
Current period gross charge-offs	939	$ 657
Minimum [Member]
Credit Quality Indicators [Abstract]
Non-accrual loans with direct exposure analyzed for individual evaluation	250
Past due accruing loans closely monitored	100
Pass [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			2,676,234
Special Mention [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			0
Substandard [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			71,847
Substandard [Member] \| Minimum [Member]
Credit Quality Indicators [Abstract]
Accruing loans with direct exposure that are closely monitored	1,000
Doubtful [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			0
Commercial Real Estate [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	62,228
2022	291,204
2021	230,713
2020	67,416
2019	70,831
Prior	200,115
Revolving loans	3,511
Loans	926,018		919,358
Current Period Gross Charge-offs [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving loans	0
Current period gross charge-offs	0	0
Commercial Real Estate [Member] \| Pass [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	62,228
2022	291,185
2021	230,596
2020	65,575
2019	69,961
Prior	179,093
Revolving loans	3,511
Loans	902,149		893,312
Commercial Real Estate [Member] \| Special Mention [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving loans	0
Loans	0		0
Commercial Real Estate [Member] \| Substandard [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			26,046
Commercial Real Estate [Member] \| Doubtful [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			0
Commercial Real Estate [Member] \| Classified [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	0
2022	19
2021	117
2020	1,841
2019	870
Prior	21,022
Revolving loans	0
Loans	23,869
Commercial [Member] \| Specialized [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	26,236
2022	70,603
2021	65,803
2020	23,212
2019	17,465
Prior	29,631
Revolving loans	82,523
Loans	315,473		327,513
Current Period Gross Charge-offs [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving loans	0
Current period gross charge-offs	0	39
Commercial [Member] \| Specialized [Member] \| Pass [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	26,236
2022	70,603
2021	65,620
2020	22,967
2019	17,446
Prior	29,568
Revolving loans	82,523
Loans	314,963		326,987
Commercial [Member] \| Specialized [Member] \| Special Mention [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving loans	0
Loans	0		0
Commercial [Member] \| Specialized [Member] \| Substandard [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			526
Commercial [Member] \| Specialized [Member] \| Doubtful [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			0
Commercial [Member] \| Specialized [Member] \| Classified [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	0
2022	0
2021	183
2020	245
2019	19
Prior	63
Revolving loans	0
Loans	510
Commercial [Member] \| General [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	28,675
2022	163,344
2021	106,788
2020	42,089
2019	25,572
Prior	85,362
Revolving loans	59,087
Loans	510,917		484,783
Current Period Gross Charge-offs [Abstract]
2023	0
2022	0
2021	25
2020	10
2019	18
Prior	146
Revolving loans	0
Current period gross charge-offs	199	307
Commercial [Member] \| General [Member] \| Pass [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	28,675
2022	150,325
2021	102,064
2020	41,549
2019	19,139
Prior	79,283
Revolving loans	54,664
Loans	475,699		451,639
Commercial [Member] \| General [Member] \| Special Mention [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving loans	0
Loans	0		0
Commercial [Member] \| General [Member] \| Substandard [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			33,144
Commercial [Member] \| General [Member] \| Doubtful [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			0
Commercial [Member] \| General [Member] \| Classified [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	0
2022	13,019
2021	4,724
2020	540
2019	6,433
Prior	6,079
Revolving loans	4,423
Loans	35,218
Consumer [Member] \| 1-4 Family Residential [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	24,089
2022	166,207
2021	117,681
2020	60,087
2019	39,058
Prior	74,525
Revolving loans	3,749
Loans	485,396		460,124
Current Period Gross Charge-offs [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving loans	0
Current period gross charge-offs	0	40
Consumer [Member] \| 1-4 Family Residential [Member] \| Pass [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	24,089
2022	166,053
2021	116,762
2020	58,256
2019	34,702
Prior	70,999
Revolving loans	3,749
Loans	474,610		450,034
Consumer [Member] \| 1-4 Family Residential [Member] \| Special Mention [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving loans	0
Loans	0		0
Consumer [Member] \| 1-4 Family Residential [Member] \| Substandard [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			10,090
Consumer [Member] \| 1-4 Family Residential [Member] \| Doubtful [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			0
Consumer [Member] \| 1-4 Family Residential [Member] \| Classified [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	0
2022	154
2021	919
2020	1,831
2019	4,356
Prior	3,526
Revolving loans	0
Loans	10,786
Consumer [Member] \| Auto Loans [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	32,574
2022	170,405
2021	71,265
2020	26,450
2019	13,809
Prior	6,806
Revolving loans	0
Loans	321,309		321,476
Current Period Gross Charge-offs [Abstract]
2023	0
2022	106
2021	102
2020	0
2019	16
Prior	30
Revolving loans	0
Current period gross charge-offs	254	86
Consumer [Member] \| Auto Loans [Member] \| Pass [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	32,574
2022	170,405
2021	71,132
2020	26,400
2019	13,730
Prior	6,741
Revolving loans	0
Loans	320,982		321,158
Consumer [Member] \| Auto Loans [Member] \| Special Mention [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving loans	0
Loans	0		0
Consumer [Member] \| Auto Loans [Member] \| Substandard [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			318
Consumer [Member] \| Auto Loans [Member] \| Doubtful [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			0
Consumer [Member] \| Auto Loans [Member] \| Classified [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	0
2022	0
2021	133
2020	50
2019	79
Prior	65
Revolving loans	0
Loans	327
Consumer [Member] \| Other Consumer [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	7,117
2022	38,908
2021	16,481
2020	5,356
2019	4,012
Prior	7,965
Revolving loans	1,574
Loans	81,413		81,308
Current Period Gross Charge-offs [Abstract]
2023	53
2022	91
2021	19
2020	6
2019	34
Prior	11
Revolving loans	0
Current period gross charge-offs	214	185
Consumer [Member] \| Other Consumer [Member] \| Pass [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	7,117
2022	38,896
2021	16,431
2020	5,320
2019	4,009
Prior	7,866
Revolving loans	1,574
Loans	81,213		81,109
Consumer [Member] \| Other Consumer [Member] \| Special Mention [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving loans	0
Loans	0		0
Consumer [Member] \| Other Consumer [Member] \| Substandard [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			199
Consumer [Member] \| Other Consumer [Member] \| Doubtful [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			0
Consumer [Member] \| Other Consumer [Member] \| Classified [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	0
2022	12
2021	50
2020	36
2019	3
Prior	99
Revolving loans	0
Loans	200
Construction [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	6,565
2022	102,556
2021	26,638
2020	270
2019	0
Prior	0
Revolving loans	12,085
Loans	148,114		153,519
Current Period Gross Charge-offs [Abstract]
2023	0
2022	0
2021	272
2020	0
2019	0
Prior	0
Revolving loans	0
Current period gross charge-offs	272	$ 0
Construction [Member] \| Pass [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	6,565
2022	102,556
2021	26,638
2020	270
2019	0
Prior	0
Revolving loans	12,085
Loans	148,114		151,995
Construction [Member] \| Special Mention [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving loans	0
Loans	0		0
Construction [Member] \| Substandard [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			1,524
Construction [Member] \| Doubtful [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
Loans			$ 0
Construction [Member] \| Classified [Member]
Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving loans	0
Loans	$ 0

LOANS HELD FOR INVESTMENT, Performance of Loans Modified (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Performance of Loans Modified [Abstract]
Nonaccrual	$ 0
30-89 Days Past Due [Member]
Performance of Loans Modified [Abstract]
Loans modified	40
90 Days or More Past Due and Still Accruing [Member]
Performance of Loans Modified [Abstract]
Loans modified	0
Commercial Real Estate [Member]
Performance of Loans Modified [Abstract]
Nonaccrual	0
Commercial Real Estate [Member] \| 30-89 Days Past Due [Member]
Performance of Loans Modified [Abstract]
Loans modified	0
Commercial Real Estate [Member] \| 90 Days or More Past Due and Still Accruing [Member]
Performance of Loans Modified [Abstract]
Loans modified	0
Commercial [Member] \| Specialized [Member]
Performance of Loans Modified [Abstract]
Nonaccrual	0
Commercial [Member] \| Specialized [Member] \| 30-89 Days Past Due [Member]
Performance of Loans Modified [Abstract]
Loans modified	0
Commercial [Member] \| Specialized [Member] \| 90 Days or More Past Due and Still Accruing [Member]
Performance of Loans Modified [Abstract]
Loans modified	0
Commercial [Member] \| General [Member]
Performance of Loans Modified [Abstract]
Nonaccrual	0
Commercial [Member] \| General [Member] \| 30-89 Days Past Due [Member]
Performance of Loans Modified [Abstract]
Loans modified	0
Commercial [Member] \| General [Member] \| 90 Days or More Past Due and Still Accruing [Member]
Performance of Loans Modified [Abstract]
Loans modified	0
Consumer [Member] \| 1-4 Family Residential [Member]
Performance of Loans Modified [Abstract]
Nonaccrual	0
Consumer [Member] \| 1-4 Family Residential [Member] \| 30-89 Days Past Due [Member]
Performance of Loans Modified [Abstract]
Loans modified	0
Consumer [Member] \| 1-4 Family Residential [Member] \| 90 Days or More Past Due and Still Accruing [Member]
Performance of Loans Modified [Abstract]
Loans modified	0
Consumer [Member] \| Auto Loans [Member]
Performance of Loans Modified [Abstract]
Nonaccrual	0
Consumer [Member] \| Auto Loans [Member] \| 30-89 Days Past Due [Member]
Performance of Loans Modified [Abstract]
Loans modified	40
Consumer [Member] \| Auto Loans [Member] \| 90 Days or More Past Due and Still Accruing [Member]
Performance of Loans Modified [Abstract]
Loans modified	0
Consumer [Member] \| Other Consumer [Member]
Performance of Loans Modified [Abstract]
Nonaccrual	0
Consumer [Member] \| Other Consumer [Member] \| 30-89 Days Past Due [Member]
Performance of Loans Modified [Abstract]
Loans modified	0
Consumer [Member] \| Other Consumer [Member] \| 90 Days or More Past Due and Still Accruing [Member]
Performance of Loans Modified [Abstract]
Loans modified	0
Construction [Member]
Performance of Loans Modified [Abstract]
Nonaccrual	0
Construction [Member] \| 30-89 Days Past Due [Member]
Performance of Loans Modified [Abstract]
Loans modified	0
Construction [Member] \| 90 Days or More Past Due and Still Accruing [Member]
Performance of Loans Modified [Abstract]
Loans modified	$ 0

LOANS HELD FOR INVESTMENT, Financial Effects of Loan Modifications (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Financial Effects of Loan Modifications [Abstract]
Weighted-average interest rate reduction	0.25%
Weighted-average term extension	41 months
Principal Forgiveness [Member]
Financial Effects of Loan Modifications [Abstract]
Loans modified	$ 0
Commercial Real Estate [Member]
Financial Effects of Loan Modifications [Abstract]
Weighted-average interest rate reduction	0.00%
Commercial Real Estate [Member] \| Principal Forgiveness [Member]
Financial Effects of Loan Modifications [Abstract]
Loans modified	$ 0
Commercial [Member] \| Specialized [Member]
Financial Effects of Loan Modifications [Abstract]
Weighted-average interest rate reduction	0.00%
Commercial [Member] \| Specialized [Member] \| Principal Forgiveness [Member]
Financial Effects of Loan Modifications [Abstract]
Loans modified	$ 0
Commercial [Member] \| General [Member]
Financial Effects of Loan Modifications [Abstract]
Weighted-average interest rate reduction	0.25%
Weighted-average term extension	43 months
Commercial [Member] \| General [Member] \| Principal Forgiveness [Member]
Financial Effects of Loan Modifications [Abstract]
Loans modified	$ 0
Consumer [Member] \| 1-4 Family Residential [Member]
Financial Effects of Loan Modifications [Abstract]
Weighted-average interest rate reduction	0.00%
Weighted-average term extension	10 months
Consumer [Member] \| 1-4 Family Residential [Member] \| Principal Forgiveness [Member]
Financial Effects of Loan Modifications [Abstract]
Loans modified	$ 0
Consumer [Member] \| Auto Loans [Member]
Financial Effects of Loan Modifications [Abstract]
Weighted-average interest rate reduction	0.00%
Weighted-average term extension	15 months
Consumer [Member] \| Auto Loans [Member] \| Principal Forgiveness [Member]
Financial Effects of Loan Modifications [Abstract]
Loans modified	$ 0
Consumer [Member] \| Other Consumer [Member]
Financial Effects of Loan Modifications [Abstract]
Weighted-average interest rate reduction	0.00%
Consumer [Member] \| Other Consumer [Member] \| Principal Forgiveness [Member]
Financial Effects of Loan Modifications [Abstract]
Loans modified	$ 0
Construction [Member]
Financial Effects of Loan Modifications [Abstract]
Weighted-average interest rate reduction	0.00%
Construction [Member] \| Principal Forgiveness [Member]
Financial Effects of Loan Modifications [Abstract]
Loans modified	$ 0

LOANS HELD FOR INVESTMENT, Loans Modifications (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
LOANS HELD FOR INVESTMENT [Abstract]
Loans modified for borrowers experiencing financial difficulty that subsequently defaulted	$ 0
Loans modified as TDR		$ 0

GOODWILL AND INTANGIBLES (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Goodwill [Abstract]
Goodwill	$ 19,508	$ 19,508
Amortized Intangible Assets [Abstract]
Other intangible assets, net	3,988	4,349
Core Deposit Intangible [Member]
Amortized Intangible Assets [Abstract]
Other intangible assets, gross	6,679	6,679
Less: Accumulated amortization	(3,633)	(3,420)
Other intangible assets, net	3,046	3,259
Other Intangibles [Member]
Amortized Intangible Assets [Abstract]
Other intangible assets, gross	2,972	2,972
Less: Accumulated amortization	(2,030)	(1,882)
Other intangible assets, net	$ 942	$ 1,090

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Mortgage Servicing Rights Asset [Roll Forward]
Beginning balance	$ 27,474	$ 19,700	$ 19,700
Additions	271	1,250
Valuation adjustment	(1,950)	4,475
Ending balance	25,795	$ 25,425	27,474
Mortgage Servicing Rights Other Information [Abstract]
Mortgage loans serviced for others	$ 2,037,390		$ 2,046,490
Mortgage servicing rights asset as a percentage of serviced mortgage loans	1.27%		1.34%
Key Assumptions Used in Measuring Fair Value of Mortgage Servicing Rights [Abstract]
Weighted average constant prepayment rate	7.44%		7.47%
Weighted average discount rate	9.65%		9.15%
Weighted average life in years	7 years 11 months 4 days		7 years 10 months 28 days

BORROWING ARRANGEMENTS, Subordinated Debt Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Sep. 29, 2020	Dec. 31, 2018
Subordinated Debt Securities [Abstract]
Subordinated debt	$ 76,007	$ 75,961
Subordinated Debt [Member]
Subordinated Debt Securities [Abstract]
Debt instrument, face amount	76,500	76,500
Debt issuance cost	465	511
Subordinated debt	$ 76,000	$ 76,000
Subordinated Debt [Member] \| Subordinated Debt Securities Issued in December 2018 [Member]
Subordinated Debt Securities [Abstract]
Debt instrument, face amount				$ 26,500
Subordinated Debt [Member] \| 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	4.00%
Debt instrument, variable interest rate, ceiling	7.50%
Subordinated Debt [Member] \| 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 [Member] \| 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	4.00%
Debt instrument, variable interest rate, ceiling	7.50%
Subordinated Debt [Member] \| 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 [Member] \| 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 [Member] \| 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 [Member] \| 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

BORROWING ARRANGEMENTS, Notes Payable and Other Borrowings (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
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, 2023 USD ($) $ / shares shares
Number of Shares [Roll Forward]
Outstanding at beginning of year (in shares) \| shares	1,354,189
Granted (in shares) \| shares	47,816
Exercised (in shares) \| shares	(25,521)
Forfeited (in shares) \| shares	(1,125)
Expired (in shares) \| shares	0
Balance at end of period (in shares) \| shares	1,375,359
Exercisable at end of period (in shares) \| shares	1,146,610
Vested at end of period (in shares) \| shares	1,146,610
Weighted-Average Exercise Price [Abstract]
Outstanding at beginning of year (in dollars per share) \| $ / shares	$ 16.11
Granted (in dollars per share) \| $ / shares	27.46
Exercised (in dollars per share) \| $ / shares	12.75
Forfeited (in dollars per share) \| $ / shares	20.19
Expired (in dollars per share) \| $ / shares	0
Balance at end of period (in dollars per share) \| $ / shares	16.57
Exercisable at end of period (in dollars per share) \| $ / shares	15.31
Vested at end of period (in dollars per share) \| $ / shares	$ 15.31
Weighted Average Remaining Contractual Life in Years [Abstract]
Options Outstanding	5 years 7 months 2 days
Exercisable at end of period	5 years 25 days
Vested at end of period	5 years 25 days
Aggregate Intrinsic Value [Abstract]
Outstanding at beginning of year \| $	$ 7,533
Granted \| $	0
Exercised \| $	(221)
Forfeited \| $	(2)
Expired \| $	0
Balance at end of period \| $	7,310
Exercisable at end of period \| $	7,096
Vested at end of period \| $	$ 7,096

STOCK-BASED COMPENSATION, Fair Value Assumptions (Details) - Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract]
Expected dividend yield		1.30%
Weighted average grant date fair value (in dollars per share)	$ 10.26	$ 10.54
Minimum [Member]
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract]
Expected volatility	39.13%	40.20%
Expected dividend yield	1.74%
Expected term	6 years 1 month 6 days	6 years 1 month 6 days
Risk-free interest rate	3.91%	1.56%
Maximum [Member]
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract]
Expected volatility	39.68%	40.29%
Expected dividend yield	1.90%
Expected term	6 years 3 months 18 days	6 years 3 months 18 days
Risk-free interest rate	3.98%	1.95%
2019 Equity Incentive Plan [Member]
Equity Incentive Plan [Abstract]
Intrinsic value of options exercised	$ 275	$ 74

STOCK-BASED COMPENSATION, Restricted Stock Awards and Units (Details) - Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Number of Shares [Roll Forward]
Outstanding at beginning of year (in shares)	84,342
Granted (in shares)	85,127
Vested (in shares)	(37,319)
Forfeited (in shares)	(1,120)
Balance at ending of period (in shares)	131,030
Weighted-Average Exercise Price [Abstract]
Outstanding at beginning of year (in dollars per share)	$ 26.76
Granted (in dollars per share)	25.33
Vested (in dollars per share)	24.3
Forfeited (in dollars per share)	24.16
Balance at ending of period (in dollars per share)	$ 26.56
Unrecognized compensation cost	$ 4,600
Weighted average remaining period, recognition of compensation cost	1 year 9 months 29 days
Fair value of restricted stock units vested	$ 907	$ 464
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, 2023	Dec. 31, 2022
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	720,851	682,296
Standby Letters of Credit [Member]
Financial instruments with off-balance-sheet risk [Abstract]
Financial instruments whose contract amounts represent credit risk outstanding	$ 12,821	$ 13,864

LEASES (Details) $ in Thousands	3 Months Ended
LEASES (Details) $ in Thousands	Mar. 31, 2023 USD ($) Lease	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Lessee Arrangements [Abstract]
Finance leases	$ 0		$ 0
Balance Sheet Components of Leases [Abstract]
Operating lease right of use assets (included in Other assets)	$ 7,871		$ 7,938
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets		Other assets
Operating lease liabilities (included in Accrued expenses and other liabilities)	$ 8,829		$ 8,897
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other liabilities		Accrued expenses and other liabilities
Operating lease costs, including short-term lease costs	$ 705	$ 597
Cash paid for amounts included in the measurement of lease liabilities [Abstract]
Operating cash flows from operating leases	503	0
Right-of-use assets obtained in exchange for new lease obligations [Abstract]
Operating leases	$ 318	0
Weighted average remaining lease term	9 years 8 months 12 days		9 years 9 months 29 days
Weighted average discount rate	4.73%		4.65%
Maturities of Operating Lease Liabilities [Abstract]
2023	$ 1,443
2024	1,501
2025	1,102
2026	1,101
2027	1,063
Thereafter	5,050
Total minimum lease payments	11,260
Less: Amount representing interest	(2,431)
Lease liabilities	$ 8,829		$ 8,897
Leases Not yet Commenced [Abstract]
Number of additional operating leases that have not yet commenced \| Lease	1
Future minimum lease payments	$ 255
Lease term	3 years
Lessor Arrangements [Abstract]
Operating lease income	$ 204	$ 216
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration]	Occupancy and equipment, net	Occupancy and equipment, net
Maximum [Member]
Lessee Arrangements [Abstract]
Termination period for leases	1 year

CAPITAL AND REGULATORY MATTERS (Details) $ in Thousands	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Consolidated [Member]
Total Capital to Risk Weighted Assets [Abstract]
Actual, Amount	$ 567,364	$ 559,094
Actual, Ratio	0.167	0.1658
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 356,699	$ 354,045
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.105	0.105
Tier I Capital to Risk Weighted Assets [Abstract]
Actual, Amount	$ 449,847	$ 443,265
Actual, Ratio	0.1324	0.1315
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 288,756	$ 286,608
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.085	0.085
Common Equity Tier 1 to Risk Weighted Assets [Abstract]
Actual, Amount	$ 404,847	$ 398,265
Actual, Ratio	0.1192	0.1181
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 237,799	$ 236,030
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.07	0.07
Tier I Capital to Average Assets [Abstract]
Actual, Amount	$ 449,847	$ 443,265
Actual, Ratio	0.1122	0.1103
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 161,253	$ 161,662
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.04	0.04
City Bank [Member]
Total Capital to Risk Weighted Assets [Abstract]
Actual, Amount	$ 461,457	$ 454,427
Actual, Ratio	0.1359	0.1348
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 356,569	$ 353,967
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.105	0.105
To Be Well Capitalized Under Prompt Corrective Action Framework, Amount	$ 339,589	$ 337,112
To Be Well Capitalized Under Prompt Corrective Action Framework, Ratio	0.10	0.10
Tier I Capital to Risk Weighted Assets [Abstract]
Actual, Amount	$ 419,948	$ 414,559
Actual, Ratio	0.1237	0.123
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 288,651	$ 286,545
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.085	0.085
To Be Well Capitalized Under Prompt Corrective Action Framework, Amount	$ 271,671	$ 269,689
To Be Well Capitalized Under Prompt Corrective Action Framework, Ratio	0.08	0.08
Common Equity Tier 1 to Risk Weighted Assets [Abstract]
Actual, Amount	$ 419,948	$ 414,559
Actual, Ratio	0.1237	0.123
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 237,712	$ 235,978
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.07	0.07
To Be Well Capitalized Under Prompt Corrective Action Framework, Amount	$ 220,733	$ 219,122
To Be Well Capitalized Under Prompt Corrective Action Framework, Ratio	0.065	0.065
Tier I Capital to Average Assets [Abstract]
Actual, Amount	$ 419,948	$ 414,559
Actual, Ratio	0.1048	0.1032
Minimum Required Under BASEL III Fully Phased-In, Amount	$ 161,166	$ 161,574
Minimum Required Under BASEL III Fully Phased-In, Ratio	0.04	0.04
To Be Well Capitalized Under Prompt Corrective Action Framework, Amount	$ 200,282	$ 200,774
To Be Well Capitalized Under Prompt Corrective Action Framework, Ratio	0.05	0.05

DERIVATIVES, Fair Value Hedges in Consolidated Balance Sheets (Details) - Fair Value Hedging [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Interest Rate 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
Interest Rate Swaps [Member] \| Other Assets [Member]
Fair value hedges included in Consolidated Balance Sheets [Abstract]
Derivative asset, notional amount	9,348		9,493
Derivative asset, fair value	482		482
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	0	$ 458
Fair value hedge ineffectiveness	0	(463)
Interest Rate Swaps [Member] \| Other Noninterest Expense [Member]
Changes in fair value hedges included in Consolidated Statements of Comprehensive Income [Abstract]
Interest rate swaps - fair value hedges	(2,654)	6,749
Fair value hedge ineffectiveness	2,638	$ (6,899)
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	$ 17,471		$ 20,125

DERIVATIVES, Mortgage Banking Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
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		$ 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	17,600		18,900
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		440
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		23,500
Derivative asset, fair value	0		186
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	35,244		5,615
Derivative liability, fair value	409		128
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 mortgage banking derivatives	(281)	$ (1,093)
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	42,188		27,348
Derivative asset, fair value	$ 978		$ 369

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
EARNINGS PER SHARE [Abstract]
Net income	$ 9,244	$ 14,278
Weighted average common shares outstanding - basic (in shares)	17,046,713	17,716,136
Effect of dilutive securities [Abstract]
Stock-based compensation awards (in shares)	514,043	676,261
Weighted average common shares outstanding - diluted (in shares)	17,560,756	18,392,397
Basic earnings per share (in dollars per share)	$ 0.54	$ 0.81
Diluted earnings per share (in dollars per share)	$ 0.53	$ 0.78

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

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

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FAIR VALUE DISCLOSURES, Assets (Liabilities) Measured at Fair Value on Recurring and Non-Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Securities available for sale [Abstract]
Securities available for sale	$ 698,579	$ 701,711
Mortgage servicing rights	25,795	27,474	$ 25,425	$ 19,700
State and Municipal [Member]
Securities available for sale [Abstract]
Securities available for sale	231,177	225,055
Residential Mortgage-backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	327,523	328,845
Commercial Mortgage-backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	42,667	41,967
Collateralized Mortgage Obligations [Member]
Securities available for sale [Abstract]
Securities available for sale	67,551	75,638
Other Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	10,992	11,112
Recurring [Member]
Securities available for sale [Abstract]
Asset-backed and other amortizing securities	18,669	19,094
Loans held for sale (mandatory)	11,576	10,038
Mortgage servicing rights	25,795	27,474
Asset derivatives	18,931	21,162
Liability derivatives	(409)	(128)
Recurring [Member] \| State and Municipal [Member]
Securities available for sale [Abstract]
Securities available for sale	231,177	225,055
Recurring [Member] \| Residential Mortgage-backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	327,523	328,845
Recurring [Member] \| Commercial Mortgage-backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	42,667	41,967
Recurring [Member] \| Collateralized Mortgage Obligations [Member]
Securities available for sale [Abstract]
Securities available for sale	67,551	75,638
Recurring [Member] \| Other Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	10,992	11,112
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] \| State and Municipal [Member]
Securities available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] \| Level 1 [Member] \| Residential Mortgage-backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] \| Level 1 [Member] \| Commercial 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	18,669	19,094
Loans held for sale (mandatory)	11,576	10,038
Mortgage servicing rights	0	0
Asset derivatives	18,931	21,162
Liability derivatives	(409)	(128)
Recurring [Member] \| Level 2 [Member] \| State and Municipal [Member]
Securities available for sale [Abstract]
Securities available for sale	231,177	225,055
Recurring [Member] \| Level 2 [Member] \| Residential Mortgage-backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	327,523	328,845
Recurring [Member] \| Level 2 [Member] \| Commercial Mortgage-backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	42,667	41,967
Recurring [Member] \| Level 2 [Member] \| Collateralized Mortgage Obligations [Member]
Securities available for sale [Abstract]
Securities available for sale	67,551	75,638
Recurring [Member] \| Level 2 [Member] \| Other Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	10,992	11,112
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	25,795	27,474
Asset derivatives	0	0
Liability derivatives	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] \| Residential Mortgage-backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	0	0
Recurring [Member] \| Level 3 [Member] \| Commercial 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]
Loans held for investment	4,161	4,821
Non-recurring [Member] \| Level 1 [Member]
Assets measured at fair value on a non-recurring basis [Abstract]
Loans held for investment	0	0
Non-recurring [Member] \| Level 2 [Member]
Assets measured at fair value on a non-recurring basis [Abstract]
Loans held for investment	0	0
Non-recurring [Member] \| Level 3 [Member]
Assets measured at fair value on a non-recurring basis [Abstract]
Loans held for investment	$ 4,161	$ 4,821

FAIR VALUE DISCLOSURES, Fair Values of Assets Recorded on a Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Fair Values of Assets Recorded on a Recurring Basis for which the Fair Value Option has been Elected [Abstract]
Aggregate fair value of loans held for sale for mandatory delivery	$ 11,576	$ 10,038
Recurring [Member]
Fair Values of Assets Recorded on a Recurring Basis for which the Fair Value Option has been Elected [Abstract]
Gains or losses recorded attributable to changes in instrument-specific credit risk	0	0
Aggregate fair value of loans held for sale for mandatory delivery	11,600	10,000
Aggregate fair value of unpaid principal balance	12,000	9,900
Fair value and unpaid principal balance difference amount	(469)	163
Loans held for sale for mandatory delivery designated as nonaccrual	0	0
Loans held for sale for mandatory delivery 90 days or more past due	0	0
Impact of fair value options on noninterest income for loans held for sale for mandatory delivery	$ (261)	$ 2,100

FAIR VALUE DISCLOSURES, Quantitative Information about Recurring and Non-Recurring Level 3 Fair Value Measurements (Details) $ in Thousands	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Mortgage servicing rights	$ 25,795	$ 27,474	$ 25,425	$ 19,700
Non-recurring [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Loans held for investment	4,161	4,821
Non-recurring [Member] \| Third Party Appraisals or Inspections [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Loans held for investment	$ 4,161	$ 4,821
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]
Loans held for investment, measurement input	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]
Loans held for investment, measurement input	1	1
Recurring [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Mortgage servicing rights	$ 25,795	$ 27,474
Recurring [Member] \| Discounted Cash Flows [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Mortgage servicing rights	$ 25,795	$ 27,474
Recurring [Member] \| Discounted Cash Flows [Member] \| Constant Prepayment Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Mortgage servicing rights, measurement input	0.0744	0.0747
Recurring [Member] \| Discounted Cash Flows [Member] \| Discount Rate [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Mortgage servicing rights, measurement input	0.0965	0.0915

FAIR VALUE DISCLOSURES, Estimated Fair Values, and Related Carrying Amounts (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Carrying Amount [Member]
Financial assets [Abstract]
Cash and cash equivalents	$ 328,002	$ 234,883
Loans held for investment, net	2,749,080	2,708,793
Loans held for sale (best efforts)	8,872	20,365
Accrued interest receivable	14,421	16,432
Financial liabilities [Abstract]
Deposits	3,508,054	3,406,430
Accrued interest payable	2,754	2,836
Junior subordinated deferrable interest debentures	46,393	46,393
Subordinated debt securities	76,007	75,961
Fair Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	328,002	234,883
Loans held for investment, net	2,697,002	2,662,609
Loans held for sale (best efforts)	9,070	20,745
Accrued interest receivable	14,421	16,432
Financial liabilities [Abstract]
Deposits	3,507,917	3,405,222
Accrued interest payable	2,754	2,836
Junior subordinated deferrable interest debentures	32,395	34,606
Subordinated debt securities	64,498	70,835
Level 1 [Member] \| Fair Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	328,002	234,883
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	0
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)	9,070	20,745
Accrued interest receivable	14,421	16,432
Financial liabilities [Abstract]
Deposits	3,507,917	3,405,222
Accrued interest payable	2,754	2,836
Junior subordinated deferrable interest debentures	32,395	34,606
Subordinated debt securities	64,498	70,835
Level 3 [Member] \| Fair Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	0	0
Loans held for investment, net	2,697,002	2,662,609
Loans held for sale (best efforts)	0	0
Accrued interest receivable	0	0
Financial liabilities [Abstract]
Deposits	0	0
Accrued interest payable	0	0
Junior subordinated deferrable interest debentures	0	0
Subordinated debt securities	$ 0	$ 0

SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions			3 Months Ended
	Apr. 20, 2023	Apr. 01, 2023	Mar. 31, 2023	Mar. 31, 2022	May 05, 2023
Dividends [Abstract]
Dividends declared per share (in dollars per share)			$ 0.13	$ 0.11
Subsequent Event [Member]
Dividends [Abstract]
Dividends declared date	Apr. 20, 2023
Dividends declared per share (in dollars per share)	$ 0.13
Dividends payable date	May 15, 2023
Dividends record date	May 01, 2023
Subsequent Event [Member] \| Stock Repurchase Program [Member]
New Stock Repurchase Program [Abstract]
Stock repurchase program, authorized amount					$ 15.0
Subsequent Event [Member] \| Windmark Sale [Member]
Windmark Sale [Abstract]
Aggregate purchase price		$ 35.5
Agreement term		5 years
Transaction costs incurred		$ 3.1

LOANS HELD FOR INVESTMENT, Amortized Cost Basis of Loans Modified to Borrowers Experiencing Financial Difficulty (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Financing Receivable Modification [Abstract]
Total class of financing receivable	0.12%
Payment Delay [Member]
Financing Receivable Modification [Abstract]
Loans modified	$ 0
Term Extension [Member]
Financing Receivable Modification [Abstract]
Loans modified	3,238
Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Loans modified	0
Term Extension and Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Loans modified	$ 42
Commercial Real Estate [Member]
Financing Receivable Modification [Abstract]
Total class of financing receivable	0.00%
Commercial Real Estate [Member] \| Payment Delay [Member]
Financing Receivable Modification [Abstract]
Loans modified	$ 0
Commercial Real Estate [Member] \| Term Extension [Member]
Financing Receivable Modification [Abstract]
Loans modified	0
Commercial Real Estate [Member] \| Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Loans modified	0
Commercial Real Estate [Member] \| Term Extension and Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Loans modified	$ 0
Commercial [Member] \| Specialized [Member]
Financing Receivable Modification [Abstract]
Total class of financing receivable	0.00%
Commercial [Member] \| Specialized [Member] \| Payment Delay [Member]
Financing Receivable Modification [Abstract]
Loans modified	$ 0
Commercial [Member] \| Specialized [Member] \| Term Extension [Member]
Financing Receivable Modification [Abstract]
Loans modified	0
Commercial [Member] \| Specialized [Member] \| Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Loans modified	0
Commercial [Member] \| Specialized [Member] \| Term Extension and Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Loans modified	$ 0
Commercial [Member] \| General [Member]
Financing Receivable Modification [Abstract]
Total class of financing receivable	0.60%
Commercial [Member] \| General [Member] \| Payment Delay [Member]
Financing Receivable Modification [Abstract]
Loans modified	$ 0
Commercial [Member] \| General [Member] \| Term Extension [Member]
Financing Receivable Modification [Abstract]
Loans modified	2,999
Commercial [Member] \| General [Member] \| Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Loans modified	0
Commercial [Member] \| General [Member] \| Term Extension and Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Loans modified	$ 42
Consumer [Member] \| 1-4 Family [Member]
Financing Receivable Modification [Abstract]
Total class of financing receivable	0.04%
Consumer [Member] \| 1-4 Family [Member] \| Payment Delay [Member]
Financing Receivable Modification [Abstract]
Loans modified	$ 0
Consumer [Member] \| 1-4 Family [Member] \| Term Extension [Member]
Financing Receivable Modification [Abstract]
Loans modified	199
Consumer [Member] \| 1-4 Family [Member] \| Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Loans modified	0
Consumer [Member] \| 1-4 Family [Member] \| Term Extension and Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Loans modified	$ 0
Consumer [Member] \| Auto Loans [Member]
Financing Receivable Modification [Abstract]
Total class of financing receivable	0.01%
Consumer [Member] \| Auto Loans [Member] \| Payment Delay [Member]
Financing Receivable Modification [Abstract]
Loans modified	$ 0
Consumer [Member] \| Auto Loans [Member] \| Term Extension [Member]
Financing Receivable Modification [Abstract]
Loans modified	40
Consumer [Member] \| Auto Loans [Member] \| Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Loans modified	0
Consumer [Member] \| Auto Loans [Member] \| Term Extension and Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Loans modified	$ 0
Consumer [Member] \| Other Consumer [Member]
Financing Receivable Modification [Abstract]
Total class of financing receivable	0.00%
Consumer [Member] \| Other Consumer [Member] \| Payment Delay [Member]
Financing Receivable Modification [Abstract]
Loans modified	$ 0
Consumer [Member] \| Other Consumer [Member] \| Term Extension [Member]
Financing Receivable Modification [Abstract]
Loans modified	0
Consumer [Member] \| Other Consumer [Member] \| Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Loans modified	0
Consumer [Member] \| Other Consumer [Member] \| Term Extension and Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Loans modified	$ 0
Construction [Member]
Financing Receivable Modification [Abstract]
Total class of financing receivable	0.00%
Construction [Member] \| Payment Delay [Member]
Financing Receivable Modification [Abstract]
Loans modified	$ 0
Construction [Member] \| Term Extension [Member]
Financing Receivable Modification [Abstract]
Loans modified	0
Construction [Member] \| Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Loans modified	0
Construction [Member] \| Term Extension and Interest Rate Reduction [Member]
Financing Receivable Modification [Abstract]
Loans modified	$ 0