0001140361-24-045412 | 10-Q | XBRL Viewer | South Plains Financial INC

$ 43,173

$ 43,137

$ 42,356

$ 39,288

600

^[1]

(700)

^[1]

3,140

^[1]

4,060

^[2]

(1,056)

(564)

(3,055)

(2,059)

169

202

445

684

42,886

42,075

42,886

42,075

42,356

Provision for off-balance sheet credit exposures

495

(700)

3,100

4,010

(105)

(40)

(50)

Decrease in specific reserves

(1,300)

Impact of CECL Adoption [Member]

Commercial Real Estate [Member]

102

15,593

14,501

15,808

13,029

290

^[1]

444

^[1]

160

^[1]

1,089

^[2]

(86)

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

15,924

14,945

15,924

14,945

15,808

Commercial [Member] | Specialized [Member]

827

4,736

4,154

4,020

3,425

149

^[1]

(270)

^[1]

821

^[1]

346

^[2]

(11)

150

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

4,907

3,943

4,907

3,943

4,020

Commercial [Member] | General [Member]

6,841

7,637

6,391

9,215

(373)

^[1]

(1,255)

^[1]

747

^[1]

(12)

^[2]

(78)

(44)

(798)

(413)

(469)

154

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

6,400

6,370

6,400

6,370

6,391

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

(2,574)

9,702

8,851

9,177

6,194

(143)

^[1]

138

^[1]

551

^[1]

1,092

^[2]

(3)

(1)

(175)

(1)

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

9,558

8,990

9,558

8,990

9,177

Consumer [Member] | Auto Loans [Member]

1,700

3,287

3,900

3,601

3,926

^[1]

(3)

^[1]

129

^[1]

629

^[2]

(296)

(173)

(786)

(586)

(888)

116

149

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

3,060

3,786

3,060

3,786

3,601

Consumer [Member] | Other Consumer [Member]

(332)

974

1,107

968

1,376

294

^[1]

214

^[1]

730

^[1]

431

^[2]

(364)

(335)

(895)

^[3]

(776)

(1,140)

^[4]

156

226

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

959

1,022

959

1,022

968

(235)

Construction [Member]

2,040

2,987

2,391

2,123

353

^[1]

485

^[2]

(315)

(272)

(319)

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

$ 2,078

$ 3,019

$ 2,078

3,019

2,391

MORTGAGE SERVICING RIGHTS [Abstract]

$ 683

[1]	For the three and nine months ended September 30, 2024 the provision for credit loss of $495 thousand and $3.1 million, respectively, on the Consolidated Statement of Comprehensive Income (Loss) includes a provision for credit losses on loans of $600 thousand and $3.1 million, respectively, and a provision for off-balance sheet credit exposures of $(105) thousand and $(40) thousand, respectively. For the three months ended September 30, 2023, the $(700) thousand provision for credit loss on the Consolidated Statement of Comprehensive Income (Loss) includes a $(700) thousand provision for credit losses on loans and no provision for off-balance sheet credit exposures.
[2]	The $4.0 million provision for credit loss on the Consolidated Statement of Comprehensive Income (Loss) includes a $4.1 million provision for credit losses on loans and a $(50) thousand provision for off-balance sheet credit exposures for the nine months ended September 30, 2023.
[3]	Includes $306 thousand in charged-off demand deposit overdrafts reported as 2024 originations.
[4]	Includes $574 thousand in charged-off demand deposit overdrafts reported as 2023 originations.

MORTGAGE SERVICING RIGHTS (Tables)

9 Months Ended

Sep. 30, 2024

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

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

	Three Months Ended September 30,					Nine Months Ended September 30,
	2024			2023		2024			2023
Beginning balance	$	26,426		$	26,658	$	26,569		$	27,474
Additions		207			416		689			1,150
Valuation adjustment		(2,060	)		675		(2,685	)		(875	)
Ending balance	$	24,573		$	27,749	$	24,573		$	27,749

	September 30,			December 31,
	2024			2023
Mortgage loans serviced for others	$	1,928,087		$	2,001,476
Mortgage servicing rights assets as a percentage of serviced mortgage loans		1.27	%		1.33	%

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:

	September 30,			December 31,
	2024			2023
Weighted average constant prepayment rate		8.60	%		7.46	%
Weighted average discount rate		10.17	%		10.66	%
Weighted average life in years		7.70			8.09

MORTGAGE SERVICING RIGHTS

9 Months Ended

Sep. 30, 2024

MORTGAGE SERVICING RIGHTS [Abstract]

MORTGAGE SERVICING RIGHTS

5. MORTGAGE SERVICING RIGHTS

	Three Months Ended September 30,					Nine Months Ended September 30,
	2024			2023		2024			2023
Beginning balance	$	26,426		$	26,658	$	26,569		$	27,474
Additions		207			416		689			1,150
Valuation adjustment		(2,060	)		675		(2,685	)		(875	)
Ending balance	$	24,573		$	27,749	$	24,573		$	27,749

	September 30,			December 31,
	2024			2023
Mortgage loans serviced for others	$	1,928,087		$	2,001,476
Mortgage servicing rights assets as a percentage of serviced mortgage loans		1.27	%		1.33	%

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:

	September 30,			December 31,
	2024			2023
Weighted average constant prepayment rate		8.60	%		7.46	%
Weighted average discount rate		10.17	%		10.66	%
Weighted average life in years		7.70			8.09

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.

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CAPITAL AND REGULATORY MATTERS [Abstract]

CAPITAL AND REGULATORY MATTERS (Tables)

9 Months Ended

Sep. 30, 2024

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					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
September 30, 2024
Total Capital to Risk Weighted Assets:
Consolidated	$	617,052		17.61	%	$	367,876		10.50	%		N/A		N/A
City Bank		511,744		14.61	%		367,822		10.50	%	$	350,307		10.00	%

Tier 1 Capital to Risk Weighted Assets:
Consolidated		509,338		14.54	%		297,804		8.50	%		N/A		N/A
City Bank		467,956		13.36	%		297,761		8.50	%		280,245		8.00	%

Common Equity Tier 1 to Risk Weighted Assets:
Consolidated		464,338		13.25	%		245,251		7.00	%		N/A		N/A
City Bank		467,956		13.36	%		245,215		7.00	%		227,699		6.50	%

Tier 1 Capital to Average Assets:
Consolidated		509,338		11.76	%		174,049		4.00	%		N/A		N/A
City Bank		467,956		10.81	%		174,015		4.00	%		216,459		5.00	%

December 31, 2023
Total Capital to Risk Weighted Assets:
Consolidated	$	589,565		16.74	%	$	369,753		10.50	%		N/A		N/A
City Bank		494,353		14.04	%		369,635		10.50	%	$	352,033		10.00	%

Tier 1 Capital to Risk Weighted Assets:
Consolidated		482,044		13.69	%		299,324		8.50	%		N/A		N/A
City Bank		450,607		12.80	%		299,228		8.50	%		281,627		8.00	%

Common Equity Tier 1 to Risk Weighted Assets:
Consolidated		437,044		12.41	%		246,502		7.00	%		N/A		N/A
City Bank		450,607		12.80	%		246,423		7.00	%		228,822		6.50	%

Tier 1 Capital to Average Assets:
Consolidated		482,044		11.33	%		171,037		4.00	%		N/A		N/A
City Bank		450,607		10.60	%		170,945		4.00	%		212,594		5.00	%

LOANS HELD FOR INVESTMENT, Performance of Loans Modified (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Performance of Loans Modified [Abstract]
Nonaccrual	$ 1,536
Current [Member]
Performance of Loans Modified [Abstract]
Loans modified	5,240
30-89 Days Past Due [Member]
Performance of Loans Modified [Abstract]
Loans modified	96
90 Days or More Past Due [Member]
Performance of Loans Modified [Abstract]
Loans modified	21
Commercial Real Estate [Member]
Performance of Loans Modified [Abstract]
Nonaccrual	0
Commercial Real Estate [Member] \| Current [Member]
Performance of Loans Modified [Abstract]
Loans modified	2,220
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 [Member]
Performance of Loans Modified [Abstract]
Loans modified	0
Commercial [Member] \| Specialized [Member]
Performance of Loans Modified [Abstract]
Nonaccrual	14
Commercial [Member] \| Specialized [Member] \| Current [Member]
Performance of Loans Modified [Abstract]
Loans modified	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 [Member]
Performance of Loans Modified [Abstract]
Loans modified	0
Commercial [Member] \| General [Member]
Performance of Loans Modified [Abstract]
Nonaccrual	80
Commercial [Member] \| General [Member] \| Current [Member]
Performance of Loans Modified [Abstract]
Loans modified	969
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 [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] \| Current [Member]
Performance of Loans Modified [Abstract]
Loans modified	762
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 [Member]
Performance of Loans Modified [Abstract]
Loans modified	21
Consumer [Member] \| Auto Loans [Member]
Performance of Loans Modified [Abstract]
Nonaccrual	0
Consumer [Member] \| Auto Loans [Member] \| Current [Member]
Performance of Loans Modified [Abstract]
Loans modified	49
Consumer [Member] \| Auto Loans [Member] \| 30-89 Days Past Due [Member]
Performance of Loans Modified [Abstract]
Loans modified	0
Consumer [Member] \| Auto Loans [Member] \| 90 Days or More Past Due [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] \| Current [Member]
Performance of Loans Modified [Abstract]
Loans modified	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 [Member]
Performance of Loans Modified [Abstract]
Loans modified	0
Construction [Member]
Performance of Loans Modified [Abstract]
Nonaccrual	1,442
Construction [Member] \| Current [Member]
Performance of Loans Modified [Abstract]
Loans modified	1,240
Construction [Member] \| 30-89 Days Past Due [Member]
Performance of Loans Modified [Abstract]
Loans modified	96
Construction [Member] \| 90 Days or More Past Due [Member]
Performance of Loans Modified [Abstract]
Loans modified	$ 0

CAPITAL AND REGULATORY MATTERS (Details) $ in Thousands	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Consolidated [Member]
Total Capital to Risk Weighted Assets [Abstract]
Actual, Amount	$ 617,052	$ 589,565
Actual, Ratio	0.1761	0.1674
Minimum Required Under BASEL III, Amount	$ 367,876	$ 369,753
Minimum Required Under BASEL III, Ratio	0.105	0.105
Tier 1 Capital to Risk Weighted Assets [Abstract]
Actual, Amount	$ 509,338	$ 482,044
Actual, Ratio	0.1454	0.1369
Minimum Required Under BASEL III, Amount	$ 297,804	$ 299,324
Minimum Required Under BASEL III, Ratio	0.085	0.085
Common Equity Tier 1 to Risk Weighted Assets [Abstract]
Actual, Amount	$ 464,338	$ 437,044
Actual, Ratio	0.1325	0.1241
Minimum Required Under BASEL III, Amount	$ 245,251	$ 246,502
Minimum Required Under BASEL III, Ratio	0.07	0.07
Tier 1 Capital to Average Assets [Abstract]
Actual, Amount	$ 509,338	$ 482,044
Actual, Ratio	0.1176	0.1133
Minimum Required Under BASEL III, Amount	$ 174,049	$ 171,037
Minimum Required Under BASEL III, Ratio	0.04	0.04
City Bank [Member]
Total Capital to Risk Weighted Assets [Abstract]
Actual, Amount	$ 511,744	$ 494,353
Actual, Ratio	0.1461	0.1404
Minimum Required Under BASEL III, Amount	$ 367,822	$ 369,635
Minimum Required Under BASEL III, Ratio	0.105	0.105
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 350,307	$ 352,033
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.10	0.10
Tier 1 Capital to Risk Weighted Assets [Abstract]
Actual, Amount	$ 467,956	$ 450,607
Actual, Ratio	0.1336	0.128
Minimum Required Under BASEL III, Amount	$ 297,761	$ 299,228
Minimum Required Under BASEL III, Ratio	0.085	0.085
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 280,245	$ 281,627
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.08	0.08
Common Equity Tier 1 to Risk Weighted Assets [Abstract]
Actual, Amount	$ 467,956	$ 450,607
Actual, Ratio	0.1336	0.128
Minimum Required Under BASEL III, Amount	$ 245,215	$ 246,423
Minimum Required Under BASEL III, Ratio	0.07	0.07
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 227,699	$ 228,822
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.065	0.065
Tier 1 Capital to Average Assets [Abstract]
Actual, Amount	$ 467,956	$ 450,607
Actual, Ratio	0.1081	0.106
Minimum Required Under BASEL III, Amount	$ 174,015	$ 170,945
Minimum Required Under BASEL III, Ratio	0.04	0.04
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 216,459	$ 212,594
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.05	0.05

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
ASSETS
Loans held for sale, fair value	$ 9,490	$ 6,615
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)	16,386,627	16,417,099
Common stock, shares outstanding (in shares)	16,386,627	16,417,099

MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Mortgage Servicing Rights Asset [Roll Forward]
Beginning balance	$ 26,426	$ 26,658	$ 26,569	$ 27,474	$ 27,474
Additions	207	416	689	1,150
Valuation adjustment	(2,060)	675	(2,685)	(875)
Ending balance	24,573	$ 27,749	24,573	$ 27,749	26,569
Mortgage Servicing Rights Other Information [Abstract]
Mortgage loans serviced for others	$ 1,928,087		$ 1,928,087		$ 2,001,476
Mortgage servicing rights assets as a percentage of serviced mortgage loans	1.27%		1.27%		1.33%
Key Assumptions Used in Measuring Fair Value of Mortgage Servicing Rights [Abstract]
Weighted average constant prepayment rate			8.60%		7.46%
Weighted average discount rate			10.17%		10.66%
Weighted average life in years			7 years 8 months 12 days		8 years 1 month 2 days

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Interest income:
Loans, including fees	$ 51,505	$ 46,242	$ 151,008	$ 128,703
Securities:
Taxable	5,300	5,422	16,096	16,027
Non-taxable	803	833	2,419	3,057
Federal funds sold and interest-bearing deposits in banks	4,032	4,031	10,052	7,010
Total interest income	61,640	56,528	179,575	154,797
Interest expense:
Deposits	22,653	18,965	65,945	44,768
Notes payable & other borrowings	0	0	0	5
Subordinated debt	835	1,012	2,505	3,037
Junior subordinated deferrable interest debentures	858	862	2,575	2,402
Total interest expense	24,346	20,839	71,025	50,212
Net interest income	37,294	35,689	108,550	104,585
Provision for credit losses	495	(700)	3,100	4,010
Net interest income, after provision for credit losses	36,799	36,389	105,450	100,575
Noninterest income:
Service charges on deposit accounts	2,023	1,840	5,785	5,286
Income from insurance activities	28	30	92	1,478
Net gain on sales of loans	2,715	2,631	8,157	9,077
Bank card services and interchange fees	3,302	3,157	10,415	10,156
Other mortgage banking income (loss)	(825)	1,971	1,075	3,069
Investment commissions	391	430	1,275	1,239
Fiduciary fees	613	582	2,087	1,779
Gain on sale of subsidiary	0	290	0	33,778
Other	2,388	1,346	5,867	4,218
Total noninterest income	10,635	12,277	34,753	70,080
Noninterest expense:
Salaries and employee benefits	18,767	18,709	56,954	61,400
Occupancy and equipment, net	4,255	4,111	12,204	12,246
Professional services	1,807	1,560	5,028	4,924
Marketing and development	1,015	853	2,629	2,573
IT and data services	1,092	818	3,168	2,570
Bank card expenses	1,500	1,451	4,413	4,119
Appraisal expenses	246	283	702	862
Realized loss on sale of securities	0	0	0	3,409
Other	4,446	3,704	12,532	12,246
Total noninterest expense	33,128	31,489	97,630	104,349
Income before income taxes	14,306	17,177	42,573	66,306
Income tax expense	3,094	3,683	9,353	13,885
Net income	$ 11,212	$ 13,494	$ 33,220	$ 52,421
Earnings per share:
Basic (in dollars per share)	$ 0.68	$ 0.8	$ 2.02	$ 3.09
Diluted (in dollars per share)	$ 0.66	$ 0.78	$ 1.96	$ 3.01
Net income	$ 11,212	$ 13,494	$ 33,220	$ 52,421
Other comprehensive income (loss):
Unrealized gains (losses) on securities available for sale	25,268	(30,907)	14,997	(29,393)
Less: Change in fair value on hedged state and municipal securities	(4,196)	2,091	(3,274)	1,320
Reclassification adjustment for loss on sale of securities	0	0	0	3,409
Tax effect	(4,425)	6,051	(2,462)	5,179
Other comprehensive income (loss)	16,647	(22,765)	9,261	(19,485)
Comprehensive income (loss)	$ 27,859	$ (9,271)	$ 42,481	$ 32,936

LOANS HELD FOR INVESTMENT, Financial Effects of Loan Modifications (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Financial Effects of Loan Modifications [Abstract]
Weighted-average interest rate reduction	4.25%	0.80%	4.15%	0.98%
Weighted-average term extension	6 months	12 months	8 months	34 months
Principal Forgiveness [Member]
Financial Effects of Loan Modifications [Abstract]
Loans modified	$ 0	$ 0	$ 0	$ 0
Commercial Real Estate [Member]
Financial Effects of Loan Modifications [Abstract]
Weighted-average interest rate reduction	0.00%	0.00%	0.00%	0.00%
Weighted-average term extension		4 months	12 months	5 months
Commercial Real Estate [Member] \| Principal Forgiveness [Member]
Financial Effects of Loan Modifications [Abstract]
Loans modified	$ 0	$ 0	$ 0	$ 0
Commercial [Member] \| Specialized [Member]
Financial Effects of Loan Modifications [Abstract]
Weighted-average interest rate reduction	0.00%	0.86%	0.00%	0.86%
Weighted-average term extension		61 months		31 months
Commercial [Member] \| Specialized [Member] \| Principal Forgiveness [Member]
Financial Effects of Loan Modifications [Abstract]
Loans modified	$ 0	$ 0	$ 0	$ 0
Commercial [Member] \| General [Member]
Financial Effects of Loan Modifications [Abstract]
Weighted-average interest rate reduction	0.00%	0.00%	1.75%	1.81%
Weighted-average term extension	3 months	7 months	15 months	66 months
Commercial [Member] \| General [Member] \| Principal Forgiveness [Member]
Financial Effects of Loan Modifications [Abstract]
Loans modified	$ 0	$ 0	$ 0	$ 0
Consumer [Member] \| 1-4 Family Residential [Member]
Financial Effects of Loan Modifications [Abstract]
Weighted-average interest rate reduction	0.00%	0.64%	0.00%	0.62%
Weighted-average term extension		5 months		5 months
Consumer [Member] \| 1-4 Family Residential [Member] \| Principal Forgiveness [Member]
Financial Effects of Loan Modifications [Abstract]
Loans modified	$ 0	$ 0	$ 0	$ 0
Consumer [Member] \| Auto Loans [Member]
Financial Effects of Loan Modifications [Abstract]
Weighted-average interest rate reduction	0.00%	0.00%	0.00%	0.00%
Weighted-average term extension				6 months
Consumer [Member] \| Auto Loans [Member] \| Principal Forgiveness [Member]
Financial Effects of Loan Modifications [Abstract]
Loans modified	$ 0	$ 0	$ 0	$ 0
Consumer [Member] \| Other Consumer [Member]
Financial Effects of Loan Modifications [Abstract]
Weighted-average interest rate reduction	0.00%	0.00%	0.00%	4.75%
Consumer [Member] \| Other Consumer [Member] \| Principal Forgiveness [Member]
Financial Effects of Loan Modifications [Abstract]
Loans modified	$ 0	$ 0	$ 0	$ 0
Construction [Member]
Financial Effects of Loan Modifications [Abstract]
Weighted-average interest rate reduction	4.25%	0.00%	4.25%	0.00%
Weighted-average term extension	6 months	6 months	6 months	5 months
Construction [Member] \| Principal Forgiveness [Member]
Financial Effects of Loan Modifications [Abstract]
Loans modified	$ 0	$ 0	$ 0	$ 0

DERIVATIVES (Tables)

9 Months Ended

Sep. 30, 2024

Mortgage Banking [Member]

Derivative [Line Items]

Net Gains (Losses) Relating to Derivative Instruments

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

		Three Months Ended
		September 30,
	Location	2024				2023
Gain (loss) on mortgage banking derivatives	Net gain (loss) on sales of loans		$	(25	)	$	(137	)

		Nine Months Ended
		September 30,
	Location	2024			2023
Gain (loss) on mortgage banking derivatives	Net gain (loss) on sales of loans		$	219	$	(48	)

Fair Value of Derivatives in Consolidated Balance Sheets

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

	September 30, 2024						December 31, 2023
	Notional Amount			Fair Value			Notional Amount			Fair Value
Included in other assets:
Forward contracts related to mortgage loans held for sale		$	—		$	—		$	—		$	—
Interest rate lock commitments			21,865			343			16,887			444

Included in other liabilities:
Forward contracts related to mortgage loans held for sale		$	22,166		$	102		$	19,021		$	422

Fair Value Hedging [Member]

Derivative [Line Items]

Fair Value of Derivatives in Consolidated Balance Sheets

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

	September 30, 2024				December 31, 2023
	Notional Amount		Fair Value		Notional Amount		Fair Value

Included in other liabilities:
Interest rate swaps related to fixed rate loans	$	—	$	—	$	987	$	10
Interest rate swaps related to state and municipal securities		—		—		—		—

Included in other assets:
Interest rate swaps related to fixed rate loans	$	11,803	$	174	$	7,796	$	158
Interest rate swaps related to state and municipal securities		123,760		13,083		123,760		16,628

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

Derivative [Line Items]

Net Gains (Losses) Relating to Derivative Instruments

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

		Three Months Ended
		September 30,
Interest Rate Contracts	Location	2024				2023
Change in fair value of interest rate swaps hedging investment securities	Other noninterest expense		$	(4,409	)		$	2,265
Change in fair value of hedged investment securities	Other noninterest expense			4,196				(2,091	)
Change in fair value of interest rate swaps hedging fixed rate loans	Interest income - Loans		$	(179	)		$	23
Change in fair value of hedged fixed rate loans	Interest income - Loans			168				(22	)

		Nine Months Ended
		September 30,
Interest Rate Contracts	Location	2024			2023
Change in fair value of interest rate swaps hedging investment securities	Other noninterest expense	$	(3,545	)	$	1,455
Change in fair value of hedged investment securities	Other noninterest expense		3,274			(1,320	)
Change in fair value of interest rate swaps hedging fixed rate loans	Interest income - Loans	$	26		$	49
Change in fair value of hedged fixed rate loans	Interest income - Loans		52			(47	)

FAIR VALUE DISCLOSURES, Assets (Liabilities) Measured at Fair Value on Recurring and Non-Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Securities available for sale [Abstract]
Securities available for sale	$ 606,889		$ 622,762
Mortgage servicing rights	24,573	$ 26,426	26,569	$ 27,749	$ 26,658	$ 27,474
State and Municipal [Member]
Securities available for sale [Abstract]
Securities available for sale	180,924		180,575
Residential Mortgage-backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	287,745		300,704
Commercial Mortgage-backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	42,295		41,748
Commercial Collateralized Mortgage Obligations [Member]
Securities available for sale [Abstract]
Securities available for sale	68,885		71,930
Other Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	11,185		10,765
Recurring [Member]
Securities available for sale [Abstract]
Asset-backed and other amortizing securities	15,855		17,040
Loans held for sale (mandatory)	9,490		6,615
Mortgage servicing rights	24,573		26,569
Asset derivatives	$ 13,600		$ 17,230
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other assets		Other assets
Liability derivatives	$ (102)		$ (432)
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other liabilities		Accrued expenses and other liabilities
Recurring [Member] \| State and Municipal [Member]
Securities available for sale [Abstract]
Securities available for sale	$ 180,924		$ 180,575
Recurring [Member] \| Residential Mortgage-backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	287,745		300,704
Recurring [Member] \| Commercial Mortgage-backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	42,295		41,748
Recurring [Member] \| Commercial Collateralized Mortgage Obligations [Member]
Securities available for sale [Abstract]
Securities available for sale	68,885		71,930
Recurring [Member] \| Other Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	11,185		10,765
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] \| Commercial 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	15,855		17,040
Loans held for sale (mandatory)	9,490		6,615
Mortgage servicing rights	0		0
Asset derivatives	13,600		17,230
Liability derivatives	(102)		(432)
Recurring [Member] \| Level 2 [Member] \| State and Municipal [Member]
Securities available for sale [Abstract]
Securities available for sale	180,924		180,575
Recurring [Member] \| Level 2 [Member] \| Residential Mortgage-backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	287,745		300,704
Recurring [Member] \| Level 2 [Member] \| Commercial Mortgage-backed Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	42,295		41,748
Recurring [Member] \| Level 2 [Member] \| Commercial Collateralized Mortgage Obligations [Member]
Securities available for sale [Abstract]
Securities available for sale	68,885		71,930
Recurring [Member] \| Level 2 [Member] \| Other Securities [Member]
Securities available for sale [Abstract]
Securities available for sale	11,185		10,765
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	24,573		26,569
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] \| Commercial 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	20,905		1,482
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	$ 20,905		$ 1,482

SECURITIES, Amortized Cost and Fair Value of Securities with Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Available for sale [Abstract]
Amortized cost	$ 673,960	$ 704,830
Gross unrealized gains	2	2
Gross unrealized losses	(67,073)	(82,070)
Allowance for credit losses	0	0
Fair value	606,889	622,762
State and Municipal [Member]
Available for sale [Abstract]
Amortized cost	200,215	202,814
Gross unrealized gains	2	2
Gross unrealized losses	(19,293)	(22,241)
Allowance for credit losses	0	0
Fair value	180,924	180,575
Residential Mortgage-backed Securities [Member]
Available for sale [Abstract]
Amortized cost	328,928	351,251
Gross unrealized gains	0	0
Gross unrealized losses	(41,183)	(50,547)
Allowance for credit losses	0	0
Fair value	287,745	300,704
Commercial Mortgage-backed Securities [Member]
Available for sale [Abstract]
Amortized cost	46,932	47,898
Gross unrealized gains	0	0
Gross unrealized losses	(4,637)	(6,150)
Allowance for credit losses	0	0
Fair value	42,295	41,748
Commercial Collateralized Mortgage Obligations [Member]
Available for sale [Abstract]
Amortized cost	69,027	72,391
Gross unrealized gains	0	0
Gross unrealized losses	(142)	(461)
Allowance for credit losses	0	0
Fair value	68,885	71,930
Asset-backed and Other Amortizing Securities [Member]
Available for sale [Abstract]
Amortized cost	16,858	18,476
Gross unrealized gains	0	0
Gross unrealized losses	(1,003)	(1,436)
Allowance for credit losses	0	0
Fair value	15,855	17,040
Other Securities [Member]
Available for sale [Abstract]
Amortized cost	12,000	12,000
Gross unrealized gains	0	0
Gross unrealized losses	(815)	(1,235)
Allowance for credit losses	0	0
Fair value	$ 11,185	$ 10,765

GOODWILL AND INTANGIBLES (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Goodwill [Abstract]
Goodwill	$ 19,315	$ 19,315
Amortized Intangible Assets [Abstract]
Other intangible assets, net	1,882	2,429
Core Deposit Intangible [Member]
Amortized Intangible Assets [Abstract]
Other intangible assets, gross	6,679	6,679
Less: Accumulated amortization	(4,797)	(4,250)
Other intangible assets, net	$ 1,882	$ 2,429

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 49
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-49

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482548/350-20-55-24

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 852
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481372/852-10-55-10

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(15))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 45
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482598/350-20-45-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(10)(1))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478546/942-210-S99-1

IMMATERIAL CORRECTION OF PRIOR PERIOD ERROR [Abstract]

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2024	Nov. 01, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
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		16,389,659

IMMATERIAL CORRECTION OF PRIOR PERIOD ERROR

9 Months Ended

Sep. 30, 2024

IMMATERIAL CORRECTION OF PRIOR PERIOD ERROR

13. IMMATERIAL CORRECTION OF PRIOR PERIOD ERROR

The Company identified an immaterial prior period error in the Consolidated Statements of Cash Flows related to cash flow activity of certain of the Company’s portfolio mortgage loans and third-party brokered loans erroneously being included in the cash flow activity for loans held for sale. The Company assessed the materiality of this change in presentation on prior period consolidated financial statements in accordance with SEC Staff Accounting Bulletin No. 99, “Materiality,” (ASC Topic 250, Accounting Changes and Error Corrections). Based on this assessment, the Company concluded that these error corrections in its Consolidated Statements of Cash Flows are not material to any previously presented consolidated financial statements. The corrections had no impact on the Consolidated Balance Sheets, Consolidated Statements of Comprehensive Income (Loss), or Consolidated Statements of Changes in Stockholders’ Equity, or notes to these consolidated financial statements, for any previously presented interim or annual consolidated financial statements.

The financial reporting periods affected by this error include the Company’s previously reported interim unaudited consolidated financial statements for each of the fiscal year-to-date periods ended March 31, 2023; June 30, 2023; and September 30, 2023. A summary of the immaterial corrections to the Company’s previously reported unaudited consolidated financial statements follows.

Corrected Consolidated Statement of Cash Flows for Nine Months Ended September 30, 2023 (in thousands):


	As Reported			Immaterial Correction			As Corrected
Proceeds from sales of loans held for sale	$	339,220		$	(59,227	)	$	279,993
Loans originated for sale	$	(321,163	)	$	59,227		$	(261,936	)

CAPITAL AND REGULATORY MATTERS

9 Months Ended

Sep. 30, 2024

CAPITAL AND REGULATORY MATTERS [Abstract]

CAPITAL AND REGULATORY MATTERS

9. CAPITAL AND REGULATORY MATTERS

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

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 September 30, 2024 and December 31, 2023, that the Company and its bank subsidiary met all capital adequacy requirements to which they are subject.

As of September 30, 2024 and December 31, 2023, 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 September 30, 2024 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					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
September 30, 2024
Total Capital to Risk Weighted Assets:
Consolidated	$	617,052		17.61	%	$	367,876		10.50	%		N/A		N/A
City Bank		511,744		14.61	%		367,822		10.50	%	$	350,307		10.00	%

Tier 1 Capital to Risk Weighted Assets:
Consolidated		509,338		14.54	%		297,804		8.50	%		N/A		N/A
City Bank		467,956		13.36	%		297,761		8.50	%		280,245		8.00	%

Common Equity Tier 1 to Risk Weighted Assets:
Consolidated		464,338		13.25	%		245,251		7.00	%		N/A		N/A
City Bank		467,956		13.36	%		245,215		7.00	%		227,699		6.50	%

Tier 1 Capital to Average Assets:
Consolidated		509,338		11.76	%		174,049		4.00	%		N/A		N/A
City Bank		467,956		10.81	%		174,015		4.00	%		216,459		5.00	%

December 31, 2023
Total Capital to Risk Weighted Assets:
Consolidated	$	589,565		16.74	%	$	369,753		10.50	%		N/A		N/A
City Bank		494,353		14.04	%		369,635		10.50	%	$	352,033		10.00	%

Tier 1 Capital to Risk Weighted Assets:
Consolidated		482,044		13.69	%		299,324		8.50	%		N/A		N/A
City Bank		450,607		12.80	%		299,228		8.50	%		281,627		8.00	%

Common Equity Tier 1 to Risk Weighted Assets:
Consolidated		437,044		12.41	%		246,502		7.00	%		N/A		N/A
City Bank		450,607		12.80	%		246,423		7.00	%		228,822		6.50	%

Tier 1 Capital to Average Assets:
Consolidated		482,044		11.33	%		171,037		4.00	%		N/A		N/A
City Bank		450,607		10.60	%		170,945		4.00	%		212,594		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 September 30, 2024.

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.

Credit Quality Indicators [Abstract]

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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Consolidation	The consolidated financial statements in this Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2024 (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	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 U.S. 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, 2023 as filed with the SEC on March 15, 2024 (the “2023 Annual Report on Form 10-K”). 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	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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements – 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 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. The amendments in this ASU modify the disclosure or presentation requirements of a variety of Topics in the Codification. Certain of the amendments represent clarifications to, or technical corrections of the current requirements. Each amendment in the ASU will only become effective if the SEC removes the related disclosure or presentation requirement from its existing regulations by June 30, 2027. The amendments in this ASU are not expected to have a material impact on the results of operations or financial position. ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this ASU require public entities to disclose information about reportable segments’ significant expenses on an interim and annual basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The adoption of ASU 2023-07 is not expected to have a material effect on the Company’s financial statements. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU are intended to improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments intended to improve the effectiveness of income tax disclosures. This ASU is effective for fiscal years beginning after December 15, 2024. The adoption of ASU 2023-09 is not expected to have a material effect on the Company’s financial statements.
Subsequent Events	Subsequent Events – The Company has evaluated subsequent events and transactions from September 30, 2024 through the date this Form 10-Q was filed with the SEC for potential recognition or disclosure as required by GAAP.

STOCK-BASED COMPENSATION, Fair Value Assumptions (Details) - Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract]
Expected volatility	40.45%
Expected dividend yield	1.80%
Expected term	6 years 1 month 6 days
Risk-free interest rate	3.94%
Weighted average grant date fair value (in dollars per share)	$ 11.1	$ 10.26
Minimum [Member]
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract]
Expected volatility		39.13%
Expected dividend yield		1.74%
Expected term		6 years 1 month 6 days
Risk-free interest rate		3.91%
Maximum [Member]
Summary of Assumptions Used to Calculate Fair Value of Awards [Abstract]
Expected volatility		39.68%
Expected dividend yield		1.90%
Expected term		6 years 3 months 18 days
Risk-free interest rate		3.98%
2019 Equity Incentive Plan [Member]
Equity Incentive Plan [Abstract]
Intrinsic value of options exercised	$ 134	$ 439

FAIR VALUE DISCLOSURES, Estimated Fair Values, and Related Carrying Amounts (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Carrying Amount [Member]
Financial assets [Abstract]
Cash and cash equivalents	$ 471,167	$ 330,158
Loans held for investment, net	2,994,489	2,971,797
Loans held for sale (best efforts)	1,899	7,884
Accrued interest receivable	19,155	20,881
Financial liabilities [Abstract]
Deposits	3,719,360	3,626,153
Accrued interest payable	4,603	5,057
Junior subordinated deferrable interest debentures	46,393	46,393
Subordinated debt	63,914	63,775
Fair Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	471,167	330,158
Loans held for investment, net	2,903,905	2,848,536
Loans held for sale (best efforts)	1,945	7,977
Accrued interest receivable	19,155	20,881
Financial liabilities [Abstract]
Deposits	3,719,388	3,625,321
Accrued interest payable	4,603	5,057
Junior subordinated deferrable interest debentures	33,740	33,098
Subordinated debt	59,174	57,497
Level 1 [Member] \| Fair Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	471,167	330,158
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	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)	1,945	7,977
Accrued interest receivable	19,155	20,881
Financial liabilities [Abstract]
Deposits	3,719,388	3,625,321
Accrued interest payable	4,603	5,057
Junior subordinated deferrable interest debentures	33,740	33,098
Subordinated debt	59,174	57,497
Level 3 [Member] \| Fair Value [Member]
Financial assets [Abstract]
Cash and cash equivalents	0	0
Loans held for investment, net	2,903,905	2,848,536
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	$ 0	$ 0

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income	$ 33,220	$ 52,421
Adjustments to reconcile net income to net cash from operating activities:
Provision for credit losses	3,100	4,010
Provision for foreclosed asset losses	0	97
Depreciation and amortization	4,913	4,784
Accretion and amortization	2,095	2,731
Other gains, net	(2)	(248)
Gain on sale of subsidiary	0	(33,778)
Loss on sale of securities	0	3,409
Net gain on sales of loans	(8,157)	(9,077)
Proceeds from sales of loans held for sale	235,525	279,993
Loans originated for sale	(224,947)	(261,936)
Deferred income tax expense	(1,938)	128
Earnings on bank-owned life insurance	(1,145)	(930)
Stock-based compensation	1,701	1,625
Change in valuation of mortgage servicing rights	2,685	875
Net change in:
Accrued interest receivable and other assets	4,607	(4,744)
Accrued expenses and other liabilities	3,552	12,619
Net cash provided by operating activities	55,209	51,979
Activity in securities available for sale:
Purchases	(299,849)	0
Sales	0	52,828
Maturities, prepayments, and calls	328,763	31,930
Loan originations and principal collections, net	(27,239)	(247,869)
Purchases of premises and equipment	(2,325)	(4,682)
Proceeds from sales of premises and equipment	69	939
Proceeds from sale of subsidiary	0	36,080
Proceeds from sales of foreclosed assets	1,348	1,014
Net cash provided by (used in) investing activities	767	(129,760)
Cash flows from financing activities:
Net change in deposits	93,207	214,184
Payments to tax authorities for stock-based compensation	(132)	(393)
Cash dividends paid on common stock	(6,702)	(6,609)
Payments to repurchase common stock	(1,340)	(11,860)
Net cash provided by financing activities	85,033	195,322
Net change in cash and cash equivalents	141,009	117,541
Beginning cash and cash equivalents	330,158	234,883
Ending cash and cash equivalents	471,167	352,424
Supplemental disclosures of cash flow information:
Interest paid on deposits and borrowed funds	71,479	49,406
Income taxes paid	8,321	16,231
Supplemental schedule of noncash activities:
Loans transferred to foreclosed assets	1,407	1,012
Premises and equipment transferred to other real estate owned	0	172
Additions to mortgage servicing rights	$ 689	$ 1,150

LOANS HELD FOR INVESTMENT, Loans Modifications (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
LOANS HELD FOR INVESTMENT [Abstract]
Loans modified for borrowers experiencing financial difficulty that subsequently defaulted	$ 32	$ 0	$ 32	$ 0

STOCK-BASED COMPENSATION, Restricted Stock Awards and Units (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Weighted-Average Exercise Price [Abstract]
Stock-based compensation			$ 1,701	$ 1,625
Restricted Stock Units [Member]
Number of Shares [Roll Forward]
Outstanding at beginning of year (in shares)			125,917
Granted (in shares)			89,103
Vested (in shares)			(23,478)
Forfeited (in shares)			(3,647)
Balance at ending of period (in shares)	187,895		187,895
Weighted-Average Exercise Price [Abstract]
Outstanding at beginning of year (in dollars per share)			$ 26.58
Granted (in dollars per share)			26.56
Vested (in dollars per share)			27.38
Forfeited (in dollars per share)			24.54
Balance at ending of period (in dollars per share)	$ 26.51		$ 26.51
Fair value of restricted stock units vested			$ 643	931
Stock-based compensation	$ 563	$ 511	1,700	$ 1,600
Unrecognized compensation cost	$ 3,800		$ 3,800
Weighted average remaining period, recognition of compensation cost			1 year 8 months 1 day
Restricted Stock Units [Member] \| Minimum [Member]
Weighted-Average Exercise Price [Abstract]
Award vesting period			1 year
Restricted Stock Units [Member] \| Maximum [Member]
Weighted-Average Exercise Price [Abstract]
Award vesting period			4 years

LOANS HELD FOR INVESTMENT, Amortized Cost Basis of Loans by Credit Quality Indicator and Origination Year and Gross Charge-offs (Details)
$ in Thousands

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2024

USD ($)

Sep. 30, 2023

USD ($)

Sep. 30, 2024

USD ($)

Point

Sep. 30, 2023

USD ($)

Dec. 31, 2023

USD ($)

Number of points on a grading scale for loans | Point

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

$ 3,037,375

$ 3,014,153

306

574

Credit Quality Indicators [Abstract]

1,056

$ 564

3,055

$ 2,059

Minimum [Member]

Non-accrual loans with direct exposure analyzed for individual evaluation

250

Past due accruing loans closely monitored

100

Substandard [Member] | Minimum [Member]

Credit Quality Indicators [Abstract]

Accruing loans with direct exposure that are closely monitored

1,000

Commercial Real Estate [Member]

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

86,699

254,766

258,236

324,683

329,443

210,363

190,624

64,036

49,065

48,137

197,322

175,229

9,058

3,842

1,120,447

1,081,056

Commercial Real Estate [Member] | Pass [Member]

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

86,699

254,766

258,236

324,601

329,367

189,211

129,343

50,660

46,957

47,988

191,480

174,859

8,575

3,842

Commercial Real Estate [Member] | Special Mention [Member]

1,050,657

1,045,927

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

32,444

11,677

445

5,522

483

38,894

11,677

Commercial Real Estate [Member] | Substandard [Member]

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

21,152

28,837

1,699

1,663

149

320

370

Commercial [Member] | Specialized [Member]

30,896

23,452

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

110,240

117,912

61,117

59,195

46,190

58,035

45,757

20,276

18,424

10,395

29,637

22,895

94,890

83,668

406,255

372,376

Commercial [Member] | Specialized [Member] | Pass [Member]

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

109,932

117,912

61,117

56,152

44,466

57,839

45,753

19,883

18,114

10,376

29,493

22,758

94,890

83,368

Commercial [Member] | Specialized [Member] | Special Mention [Member]

403,765

368,288

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

213

2,938

1,699

300

1,912

3,238

Commercial [Member] | Specialized [Member] | Substandard [Member]

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

105

196

393

310

144

137

Commercial [Member] | General [Member]

578

850

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

66,836

89,112

81,969

131,557

114,149

95,633

76,306

36,021

30,345

48,409

84,560

71,997

72,283

44,632

526,448

517,361

186

564

321

Commercial [Member] | General [Member] | Pass [Member]

798

413

469

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

66,836

88,911

81,786

128,627

110,723

90,957

70,953

35,794

30,296

45,660

83,441

68,990

72,030

44,131

Commercial [Member] | General [Member] | Special Mention [Member]

516,065

503,070

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

966

808

1,565

250

1,774

1,815

Commercial [Member] | General [Member] | Substandard [Member]

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

201

183

2,930

2,460

4,676

4,545

227

2,749

1,119

1,442

253

251

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

8,609

12,476

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

67,699

114,273

101,136

156,931

157,959

110,857

99,782

52,648

47,015

35,103

83,290

61,149

5,520

3,770

562,401

534,731

121

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

175

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

67,699

113,897

100,414

156,549

157,031

106,619

98,989

51,940

46,582

31,345

74,939

56,666

5,520

3,770

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

551,174

520,786

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

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

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

376

722

382

928

4,238

793

708

433

3,758

8,351

4,483

Consumer [Member] | Auto Loans [Member]

11,227

13,945

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

43,319

106,165

79,897

124,777

87,036

48,885

31,064

16,584

9,238

6,893

2,955

1,967

253,509

305,271

113

292

377

303

254

125

Consumer [Member] | Auto Loans [Member] | Pass [Member]

296

173

786

586

888

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

43,319

106,149

79,897

124,588

86,894

48,686

30,819

16,524

9,211

6,812

2,918

1,935

Consumer [Member] | Auto Loans [Member] | Special Mention [Member]

253,058

304,694

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

Consumer [Member] | Auto Loans [Member] | Substandard [Member]

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

189

Consumer [Member] | Other Consumer [Member]

142

199

245

451

577

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

17,271

23,719

15,455

26,912

17,274

10,242

6,389

3,200

1,779

2,539

6,094

6,191

1,527

1,365

65,789

74,168

308

^[1]

624

^[2]

215

^[1]

244

^[2]

187

^[1]

^[2]

^[1]

^[2]

^[1]

^[2]

113

^[1]

^[2]

^[1]

^[2]

Consumer [Member] | Other Consumer [Member] | Pass [Member]

364

335

895

^[1]

776

1,140

^[2]

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

17,271

23,719

15,455

26,899

17,224

10,198

6,353

3,190

1,774

2,539

6,051

6,107

1,525

1,364

Consumer [Member] | Other Consumer [Member] | Special Mention [Member]

65,653

74,016

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

Consumer [Member] | Other Consumer [Member] | Substandard [Member]

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

136

152

Construction [Member]

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

49,387

62,034

40,017

54,244

8,034

6,331

1,781

331

3,307

6,250

102,526

129,190

315

271

Construction [Member] | Pass [Member]

315

$ 0

315

$ 272

319

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

49,387

61,903

38,961

53,930

7,553

5,511

960

331

3,307

6,250

Construction [Member] | Special Mention [Member]

100,168

127,925

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

131

820

951

Construction [Member] | Substandard [Member]

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

Factors Used in Earnings Per Share Computation

1,056

314

481

821

$ 2,358

$ 314

[1]	Includes $306 thousand in charged-off demand deposit overdrafts reported as 2024 originations.
[2]	Includes $574 thousand in charged-off demand deposit overdrafts reported as 2023 originations.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Windmark Sale [Abstract]
Aggregate purchase price			$ 0	$ 36,080
Pre-tax gain on sale of subsidiary	$ 0	$ 290	$ 0	33,778
City Bank [Member] \| Bank Subsidiary [Member]
Subsidiaries Information [Abstract]
Wholly-Owned, Consolidated Subsidiaries			City Bank
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
Windmark [Member]
Windmark Sale [Abstract]
Aggregate purchase price				36,100
Pre-tax gain on sale of subsidiary				$ 33,800

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2024

EARNINGS PER SHARE [Abstract]

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net income	$	11,212	$	13,494	$	33,220	$	52,421

Weighted average common shares outstanding - basic		16,386,079		16,842,594		16,413,685		16,978,499
Effect of dilutive securities:
Stock-based compensation awards		670,880		511,588		565,753		462,402
Weighted average common shares outstanding - diluted		17,056,959		17,354,182		16,979,438		17,440,901

Basic earnings per share	$	0.68	$	0.80	$	2.02	$	3.09
Diluted earnings per share	$	0.66	$	0.78	$	1.96	$	3.01

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
ASSETS
Cash and due from banks	$ 60,863	$ 62,821
Interest-bearing deposits in banks	410,304	267,337
Cash and cash equivalents	471,167	330,158
Securities available for sale	606,889	622,762
Loans held for sale ($9,490 and $6,615 at fair value at September 30, 2024 and December 31, 2023, respectively)	11,389	14,499
Loans held for investment	3,037,375	3,014,153
Allowance for credit losses on loans	(42,886)	(42,356)
Loans held for investment, net	2,994,489	2,971,797
Accrued interest receivable	19,155	20,881
Premises and equipment, net	53,323	55,070
Bank-owned life insurance	75,649	74,504
Goodwill	19,315	19,315
Intangible assets, net	1,882	2,429
Mortgage servicing rights	24,573	26,569
Deferred tax asset, net	18,889	19,413
Other assets	40,939	47,396
Total assets	4,337,659	4,204,793
Deposits:
Noninterest-bearing	998,480	974,201
Interest-bearing	2,720,880	2,651,952
Total deposits	3,719,360	3,626,153
Accrued expenses and other liabilities	64,870	61,358
Subordinated debt	63,914	63,775
Junior subordinated deferrable interest debentures	46,393	46,393
Total liabilities	3,894,537	3,797,679
Stockholders' equity:
Common stock, $1.00 par value per share, 30,000,000 shares authorized; 16,386,627 and 16,417,099 issued and outstanding at September 30, 2024 and December 31, 2023, respectively	16,386	16,417
Additional paid-in capital	97,367	97,107
Retained earnings	371,782	345,264
Accumulated other comprehensive loss	(42,413)	(51,674)
Total stockholders' equity	443,122	407,114
Total liabilities and stockholders' equity	$ 4,337,659	$ 4,204,793

LOANS HELD FOR INVESTMENT, Recorded Investment in Loans and Related ACL on Loans Recorded Disaggregated (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	$ 21,470	$ 1,624
ACL for Loans [Abstract]
Individually Evaluated - Fair Value of Collateral	565	142
Equipment [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	353
Real Estate [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	21,470	1,271
Other [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Commercial Real Estate [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	20,029	0
ACL for Loans [Abstract]
Individually Evaluated - Fair Value of Collateral	565	0
Commercial Real Estate [Member] \| Equipment [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Commercial Real Estate [Member] \| Real Estate [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	20,029	0
Commercial Real Estate [Member] \| Other [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Commercial [Member] \| Specialized [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
ACL for Loans [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Commercial [Member] \| Specialized [Member] \| Equipment [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Commercial [Member] \| Specialized [Member] \| Real Estate [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Commercial [Member] \| Specialized [Member] \| Other [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Commercial [Member] \| General [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	1,044
ACL for Loans [Abstract]
Individually Evaluated - Fair Value of Collateral	0	142
Commercial [Member] \| General [Member] \| Equipment [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	353
Commercial [Member] \| General [Member] \| Real Estate [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	691
Commercial [Member] \| General [Member] \| Other [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Consumer [Member] \| 1-4 Family Residential [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	362
ACL for Loans [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Consumer [Member] \| 1-4 Family Residential [Member] \| Equipment [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Consumer [Member] \| 1-4 Family Residential [Member] \| Real Estate [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	362
Consumer [Member] \| 1-4 Family Residential [Member] \| Other [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Consumer [Member] \| Auto Loans [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
ACL for Loans [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Consumer [Member] \| Auto Loans [Member] \| Equipment [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Consumer [Member] \| Auto Loans [Member] \| Real Estate [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Consumer [Member] \| Auto Loans [Member] \| Other [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Consumer [Member] \| Other Consumer [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
ACL for Loans [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Consumer [Member] \| Other Consumer [Member] \| Equipment [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Consumer [Member] \| Other Consumer [Member] \| Real Estate [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Consumer [Member] \| Other Consumer [Member] \| Other [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Construction [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	1,441	218
ACL for Loans [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Construction [Member] \| Equipment [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	0	0
Construction [Member] \| Real Estate [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	1,441	218
Construction [Member] \| Other [Member]
Recorded Investment [Abstract]
Individually Evaluated - Fair Value of Collateral	$ 0	$ 0

SECURITIES, Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Available for Sale, Amortized Cost [Abstract]
Within 1 year	$ 2,541
After 1 year through 5 years	4,521
After 5 years through 10 years	15,801
After 10 years	189,352
Declining-balance securities	461,745
Amortized cost	673,960	$ 704,830
Available for Sale, Fair Value [Abstract]
Within 1 year	2,521
After 1 year through 5 years	4,427
After 5 years through 10 years	14,963
After 10 years	170,198
Declining-balance securities	414,780
Fair value	$ 606,889	$ 622,762

IMMATERIAL CORRECTION OF PRIOR PERIOD ERROR (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Corrected Consolidated Statement of Cash Flows[Abstract]
Proceeds from sales of loans held for sale	$ 235,525	$ 279,993
Loans originated for sale	$ (224,947)	(261,936)
As Reported [Member]
Corrected Consolidated Statement of Cash Flows[Abstract]
Proceeds from sales of loans held for sale		339,220
Loans originated for sale		(321,163)
Immaterial Correction [Member]
Corrected Consolidated Statement of Cash Flows[Abstract]
Proceeds from sales of loans held for sale		(59,227)
Loans originated for sale		$ 59,227

BORROWING ARRANGEMENTS	9 Months Ended
BORROWING ARRANGEMENTS	Sep. 30, 2024
BORROWING ARRANGEMENTS [Abstract]
BORROWING ARRANGEMENTS	6. BORROWING ARRANGEMENTS Subordinated Debt In December 2018, the Company issued $14.1 million of subordinated notes that 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, these 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. These 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, these notes will reset quarterly at a variable rate equal to the then current three-month Secured Overnight Financing Rate (“SOFR”), 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 September 30, 2024, the total amount of subordinated notes outstanding was $64.1 million less approximately $186 thousand of remaining debt issuance costs for a total balance of $63.9 million. As of December 31, 2023, the total amount of subordinated notes outstanding was $64.1 million less approximately $325 thousand of remaining debt issuance costs for a total balance of $63.8 million. Notes Payable and Other Borrowings As of September 30, 2024 and December 31, 2023, City Bank had no outstanding advances from the Federal Home Loan Bank of Dallas (“FHLB”).

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.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 6
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/470/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 45
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1B
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-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1C

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1E

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1I

LOANS HELD FOR INVESTMENT [Abstract]

BORROWING ARRANGEMENTS, Subordinated Debt (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Sep. 29, 2020	Dec. 31, 2018
Subordinated Debt Securities [Abstract]
Subordinated debt	$ 63,914	$ 63,775
Subordinated Debt [Member]
Subordinated Debt Securities [Abstract]
Debt instrument, face amount	64,100	64,100
Debt issuance cost	186	325
Subordinated debt	$ 63,900	$ 63,800
Subordinated Debt [Member] \| Subordinated Debt Securities Issued in December 2018 [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] \| 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
Term of variable rate	3 months
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]	us-gaap:SecuredOvernightFinancingRateSofrMember
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

OFF-BALANCE-SHEET ACTIVITIES, COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
FHLB Letters of Credit [Abstract]
Letters of credit outstanding balance	$ 75,000	$ 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	545,480	598,800
Standby Letters of Credit [Member]
Financial instruments with off-balance sheet risk [Abstract]
Financial instruments whose contract amounts represent credit risk outstanding	$ 16,309	$ 11,503

LOANS HELD FOR INVESTMENT (Tables)

9 Months Ended

Sep. 30, 2024

Summary of Loans Held for Investment by Category

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

	September 30, 2024			December 31, 2023
Commercial real estate	$	1,120,447		$	1,081,056
Commercial - specialized		406,255			372,376
Commercial - general		526,448			517,361
Consumer:
1-4 family residential		562,401			534,731
Auto loans		253,509			305,271
Other consumer		65,789			74,168
Construction		102,526			129,190
		3,037,375			3,014,153
Allowance for credit losses on loans		(42,886	)		(42,356	)
Loans, net	$	2,994,489		$	2,971,797

Activity in ACL for Loans and Investment in Loans Disaggregated Based on Method of Evaluating Impairment

The following tables detail 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		Provision for Credit Losses⁽¹⁾			Charge-offs			Recoveries		Ending Balance
For the three months ended September 30, 2024
Commercial real estate	$	15,593	$	290		$	—		$	41	$	15,924
Commercial - specialized		4,736		149			—			22		4,907
Commercial - general		6,841		(373	)		(78	)		10		6,400
Consumer:
1-4 family residential		9,702		(143	)		(3	)		2		9,558
Auto loans		3,287		30			(296	)		39		3,060
Other consumer		974		294			(364	)		55		959
Construction		2,040		353			(315	)		—		2,078
	$	43,173	$	600		$	(1,056	)	$	169	$	42,886

For the three months ended September 30, 2023
Commercial real estate	$	14,501	$	444		$	—		$	—	$	14,945
Commercial - specialized		4,154		(270	)		(11	)		70		3,943
Commercial - general		7,637		(1,255	)		(44	)		32		6,370
Consumer:
1-4 family residential		8,851		138			(1	)		2		8,990
Auto loans		3,900		(3	)		(173	)		62		3,786
Other consumer		1,107		214			(335	)		36		1,022
Construction		2,987		32			—			—		3,019
	$	43,137	$	(700	)	$	(564	)	$	202	$	42,075

For the nine months ended September 30, 2024
Commercial real estate	$	15,808	$	160	$	(86	)	$	42	$	15,924
Commercial - specialized		4,020		821		—			66		4,907
Commercial - general		6,391		747		(798	)		60		6,400
Consumer:
1-4 family residential		9,177		551		(175	)		5		9,558
Auto loans		3,601		129		(786	)		116		3,060
Other consumer		968		730		(895	)		156		959
Construction		2,391		2		(315	)		—		2,078
	$	42,356	$	3,140	$	(3,055	)	$	445	$	42,886

(1) For the three and nine months ended September 30, 2024 the provision for credit loss of $495 thousand and $3.1 million, respectively, on the Consolidated Statement of Comprehensive Income (Loss) includes a provision for credit losses on loans of $600 thousand and $3.1 million, respectively, and a provision for off-balance sheet credit exposures of $(105) thousand and $(40) thousand, respectively. For the three months ended September 30, 2023, the $(700) thousand provision for credit loss on the Consolidated Statement of Comprehensive Income (Loss) includes a $(700) thousand provision for credit losses on loans and no provision for off-balance sheet credit exposures.

	Beginning Balance		Impact of CECL Adoption			Provision for Credit Losses⁽¹⁾			Charge-offs			Recoveries		Ending Balance
For the nine months ended September 30, 2023
Commercial real estate	$	13,029	$	827		$	1,089		$	—		$	—	$	14,945
Commercial - specialized		3,425		33			346			(11	)		150		3,943
Commercial - general		9,215		(2,574	)		(12	)		(413	)		154		6,370
Consumer:
1-4 family residential		6,194		1,700			1,092			(1	)		5		8,990
Auto loans		3,926		(332	)		629			(586	)		149		3,786
Other consumer		1,376		(235	)		431			(776	)		226		1,022
Construction		2,123		683			485			(272	)		—		3,019
	$	39,288	$	102		$	4,060		$	(2,059	)	$	684	$	42,075

(1) The $4.0 million provision for credit loss on the Consolidated Statement of Comprehensive Income (Loss) includes a $4.1 million provision for credit losses on loans and a $(50) thousand provision for off-balance sheet credit exposures for the nine months ended September 30, 2023.

The increase in the provision for credit losses during the three months ended September 30, 2024, compared to the same period in 2023, was primarily due to a decrease of $1.3 million in specific reserves during the three months ended September 30, 2023. The provision increased during the nine months ended September 30, 2024, compared to the same period in 2023, mainly due to a larger growth in loans during the 2023 period compared to the 2024 period.

The following tables show the Company’s amortized cost in loans and related ACL for collateral dependent loans by class using the fair value of collateral loss estimation methodology of evaluating expected credit losses at the dates indicated (dollars in thousands).

	Equipment		Real Estate		Other		Total Loans Individually Evaluated		Total ACL for Individually Evaluated Loans
September 30, 2024
Commercial real estate	$	—	$	20,029	$	—	$	20,029	$	565
Commercial - specialized		—		—		—		—		—
Commercial - general		—		—		—		—		—
Consumer:
1-4 family residential		—		—		—		—		—
Auto loans		—		—		—		—		—
Other consumer		—		—		—		—		—
Construction		—		1,441		—		1,441		—
	$	—	$	21,470	$	—	$	21,470	$	565

December 31, 2023
Commercial real estate	$	—	$	—	$	—	$	—	$	—
Commercial - specialized		—		—		—		—		—
Commercial - general		353		691		—		1,044		142
Consumer:
1-4 family residential		—		362		—		362		—
Auto loans		—		—		—		—		—
Other consumer		—		—		—		—		—
Construction		—		218		—		218		—
	$	353	$	1,271	$	—	$	1,624	$	142

Age Analysis on Accruing Past-due Loans and Nonaccrual Loans

The tables below provide 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
September 30, 2024
Commercial real estate	$	199	$	43	$	20,029	$	—
Commercial - specialized		240		39		119		—
Commercial - general		401		143		266		—
Consumer:
1-4 Family residential		2,727		1,569		693		—
Auto loans		651		110		—		—
Other consumer		1,100		216		25		—
Construction		96		—		1,442		1,442
	$	5,414	$	2,120	$	22,574	$	1,442

December 31, 2023
Commercial real estate	$	499	$	86	$	—	$	—
Commercial - specialized		521		—		213		—
Commercial - general		1,316		296		953		—
Consumer:
1-4 Family residential		793		1,390		1,828		362
Auto loans		1,208		60		—		—
Other consumer		1,134		103		30		—
Construction		759		—		218		218
	$	6,230	$	1,935	$	3,242	$	580

Amortized Cost Basis in Loans by Credit Quality Indicator and Origination Year and Gross Charge-offs

The following tables reflect the amortized cost basis in loans held for investment by credit quality indicator and origination year at the dates indicated, and related year-to-date gross charge-offs. 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 September 30, 2024 and December 31, 2023.

							Term Loans
					Amortized Cost Basis by Origination Year
					September 30, 2024
(Dollars in thousands)
	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total

Commercial real estate
Pass	$	86,699	$	258,236	$	329,367	$	129,343	$	46,957	$	191,480	$	8,575	$	1,050,657
Special mention		—		—		—		32,444		445		5,522		483		38,894
Substandard		—		—		76		28,837		1,663		320		—		30,896
Total commercial real estate loans	$	86,699	$	258,236	$	329,443	$	190,624	$	49,065	$	197,322	$	9,058	$	1,120,447
Year-to-date gross charge-offs	$	—	$	—	$	64	$	—	$	—	$	22	$	—	$	86

Commercial - specialized
Pass	$	109,932	$	61,117	$	44,466	$	45,753	$	18,114	$	29,493	$	94,890	$	403,765
Special mention		213		—		1,699		—		—		—		—		1,912
Substandard		95		—		25		4		310		144		—		578
Total commercial - specialized loans	$	110,240	$	61,117	$	46,190	$	45,757	$	18,424	$	29,637	$	94,890	$	406,255
Year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial - general
Pass	$	66,836	$	81,786	$	110,723	$	70,953	$	30,296	$	83,441	$	72,030	$	516,065
Special mention		—		—		966		808		—		—		—		1,774
Substandard		—		183		2,460		4,545		49		1,119		253		8,609
Total commercial - general loans	$	66,836	$	81,969	$	114,149	$	76,306	$	30,345	$	84,560	$	72,283	$	526,448
Year-to-date gross charge-offs	$	—	$	186	$	564	$	10	$	—	$	38	$	—	$	798

Consumer 1-4 family residential
Pass	$	67,699	$	100,414	$	157,031	$	98,989	$	46,582	$	74,939	$	5,520	$	551,174
Special mention		—		—		—		—		—		—		—		—
Substandard		—		722		928		793		433		8,351		—		11,227
Total consumer 1-4 family residential loans	$	67,699	$	101,136	$	157,959	$	99,782	$	47,015	$	83,290	$	5,520	$	562,401
Year-to-date gross charge-offs	$	—	$	—	$	121	$	51	$	—	$	3	$	—	$	175

Consumer auto loans
Pass	$	43,319	$	79,897	$	86,894	$	30,819	$	9,211	$	2,918	$	—	$	253,058
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		142		245		27		37		—		451
Total consumer auto loans	$	43,319	$	79,897	$	87,036	$	31,064	$	9,238	$	2,955	$	—	$	253,509
Year-to-date gross charge-offs	$	17	$	292	$	303	$	125	$	25	$	24	$	—	$	786

Consumer other consumer
Pass	$	17,271	$	15,455	$	17,224	$	6,353	$	1,774	$	6,051	$	1,525	$	65,653
Special mention		—		—		—		—		—		—		—		—
Substandard		—		—		50		36		5		43		2		136
Total consumer other consumer loans	$	17,271	$	15,455	$	17,274	$	6,389	$	1,779	$	6,094	$	1,527	$	65,789
Year-to-date gross charge-offs ⁽¹⁾	$	308	$	215	$	187	$	43	$	29	$	113	$	—	$	895


Construction
Pass	$	49,387	$	38,961	$	7,553	$	960	$	—	$	—	$	3,307	$	100,168
Special mention		—		—		—		—		—		—		—		—
Substandard		—		1,056		481		821		—		—		—		2,358
Total construction loans	$	49,387	$	40,017	$	8,034	$	1,781	$	—	$	—	$	3,307	$	102,526
Year-to-date gross charge-offs	$	—	$	315	$	—	$	—	$	—	$	—	$	—	$	315

⁽¹⁾

Includes $306 thousand in charged-off demand deposit overdrafts reported as 2024 originations.

					Term Loans
					Amortized Cost Basis by Origination Year December 31, 2023
(Dollars in thousands)
	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total

Commercial real estate
Pass	$	254,766	$	324,601	$	189,211	$	50,660	$	47,988	$	174,859	$	3,842	$	1,045,927
Special mention		—		—		—		11,677		—		—		—		11,677
Substandard		—		82		21,152		1,699		149		370		—		23,452
Total commercial real estate loans	$	254,766	$	324,683	$	210,363	$	64,036	$	48,137	$	175,229	$	3,842	$	1,081,056
Year-to-date gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial - specialized
Pass	$	117,912	$	56,152	$	57,839	$	19,883	$	10,376	$	22,758	$	83,368	$	368,288
Special mention		—		2,938		—		—		—		—		300		3,238
Substandard		—		105		196		393		19		137		—		850
Total commercial - specialized loans	$	117,912	$	59,195	$	58,035	$	20,276	$	10,395	$	22,895	$	83,668	$	372,376
Year-to-date gross charge-offs	$	—	$	—	$	—	$	11	$	—	$	—	$	—	$	11

Commercial - general
Pass	$	88,911	$	128,627	$	90,957	$	35,794	$	45,660	$	68,990	$	44,131	$	503,070
Special mention		—		—		—		—		—		1,565		250		1,815
Substandard		201		2,930		4,676		227		2,749		1,442		251		12,476
Total commercial - general loans	$	89,112	$	131,557	$	95,633	$	36,021	$	48,409	$	71,997	$	44,632	$	517,361
Year-to-date gross charge-offs	$	—	$	47	$	50	$	33	$	18	$	321	$	—	$	469

Consumer 1-4 family residential
Pass	$	113,897	$	156,549	$	106,619	$	51,940	$	31,345	$	56,666	$	3,770	$	520,786
Special mention		—		—		—		—		—		—		—		—
Substandard		376		382		4,238		708		3,758		4,483		—		13,945
Total consumer 1-4 family residential loans	$	114,273	$	156,931	$	110,857	$	52,648	$	35,103	$	61,149	$	3,770	$	534,731
Year-to-date gross charge-offs	$	—	$	—	$	1	$	—	$	—	$	—	$	—	$	1

Consumer auto loans
Pass	$	106,149	$	124,588	$	48,686	$	16,524	$	6,812	$	1,935	$	—	$	304,694
Special mention		—		—		—		—		—		—		—		—
Substandard		16		189		199		60		81		32		—		577
Total consumer auto loans	$	106,165	$	124,777	$	48,885	$	16,584	$	6,893	$	1,967	$	—	$	305,271
Year-to-date gross charge-offs	$	113	$	377	$	254	$	14	$	49	$	81	$	—	$	888

Consumer other consumer
Pass	$	23,719	$	26,899	$	10,198	$	3,190	$	2,539	$	6,107	$	1,364	$	74,016
Special mention		—		—		—		—		—		—		—		—
Substandard		—		13		44		10		—		84		1		152
Total consumer other consumer loans	$	23,719	$	26,912	$	10,242	$	3,200	$	2,539	$	6,191	$	1,365	$	74,168
Year-to-date gross charge-offs ⁽¹⁾	$	624	$	244	$	88	$	32	$	72	$	80	$	—	$	1,140


Construction
Pass	$	61,903	$	53,930	$	5,511	$	331	$	—	$	—	$	6,250	$	127,925
Special mention		131		—		820		—		—		—		—		951
Substandard		—		314		—		—		—		—		—		314
Total construction loans	$	62,034	$	54,244	$	6,331	$	331	$	—	$	—	$	6,250	$	129,190
Year-to-date gross charge-offs	$	48	$	—	$	271	$	—	$	—	$	—	$	—	$	319

⁽¹⁾

Includes $574 thousand in charged-off demand deposit overdrafts reported as 2023 originations.

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

The following tables present the amortized cost basis of loans at September 30, 2024 and 2023 that were both experiencing financial difficulty and modified during the periods indicated, 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 basis of each class of financing receivable is also presented below (dollars in thousands):

	Payment Delay		Term Extension		Rate Reduction		Term Extension and Payment Delay		Term Extension and Interest Rate Reduction		Payment Delay and Interest Rate Reduction		Payment Delay, Term Extension, and Interest Rate Reduction		Total Class of Financing Receivable
Three Months Ended September 30, 2024
Commercial real estate	$	74	$	—	$	—	$	—	$	—	$	—	$	—		0.01	%
Commercial - specialized		—		—		—		—		—		—		—		0.00	%
Commercial - general		—		—		—		11		—		—		—		0.00	%
Consumer:
1-4 family		263		—		—		—		—		—		—		0.05	%
Auto loans		—		—		—		—		—		—		—		0.00	%
Other consumer		—		—		—		—		—		—		—		0.00	%
Construction		—		—		820		1,538		—		—		—		2.30	%
	$	337	$	—	$	820	$	1,549	$	—	$	—	$	—		0.09	%
Three Months Ended September 30, 2023
Commercial real estate	$	—	$	2,112	$	—	$	36	$	—	$	—	$	—		0.21	%
Commercial - specialized		—		—		—		—		692		—		—		0.19	%
Commercial - general		33		327		—		5		—		—		—		0.07	%
Consumer:
1-4 family		183		—		—		—		251		—		8		0.08	%
Auto loans		79		—		—		—		—		—		—		0.02	%
Other consumer		—		—		—		—		—		—		—		0.00	%
Construction		—		1,816		—		306		—		—		—		1.53	%
	$	295	$	4,255	$	—	$	347	$	943	$	—	$	8		0.20	%
Nine Months Ended September 30, 2024
Commercial real estate	$	74	$	67	$	—	$	—	$	—	$	—	$	—		0.01	%
Commercial - specialized		15		—		—		—		—		—		—		0.00	%
Commercial - general		—		441		—		11		35		—		—		0.09	%
Consumer:
1-4 family		263		—		—		—		—		—		—		0.05	%
Auto loans		—		—		—		—		—		—		—		0.00	%
Other consumer		—		—		—		—		—		—		—		0.00	%
Construction		—		—		820		1,538		—		—		—		2.30	%
	$	352	$	508	$	820	$	1,549	$	35	$	—	$	—		0.11	%
Nine Months Ended September 30, 2023
Commercial real estate	$	—	$	2,112	$	—	$	132	$	—	$	—	$	—		0.21	%
Commercial - specialized		118		690		—		82		692		—		—		0.43	%
Commercial - general		33		5,053		—		458		113		—		39		1.11	%
Consumer:
1-4 family		190		391		—		—		251		—		21		0.16	%
Auto loans		79		39		—		—		—		—		—		0.04	%
Other consumer		—		—		—		—		—		13		—		0.02	%
Construction		—		3,002		—		306		—		—		—		2.39	%
	$	420	$	11,287	$	—	$	978	$	1,056	$	13	$	60		0.46	%

The following table presents the financial effects of the loan modifications presented above to borrowers experiencing financial difficulty during the periods indicated below (dollars in thousands):

	Principal Forgiveness		Weighted- Average Interest Rate Reduction			Weighted- Average Term Extension (Months)
Three Months Ended September 30, 2024
Commercial real estate	$	—		0.00	%		—
Commercial - specialized		—		0.00	%		—
Commercial - general		—		0.00	%		3
Consumer:
1-4 Family residential		—		0.00	%		—
Auto loans		—		0.00	%		—
Other consumer		—		0.00	%		—
Construction		—		4.25	%		6
	$	—		4.25	%		6
Three Months Ended September 30, 2023
Commercial real estate	$	—		0.00	%		4
Commercial - specialized		—		0.86	%		61
Commercial - general		—		0.00	%		7
Consumer:
1-4 Family residential		—		0.64	%		5
Auto loans		—		0.00	%		—
Other consumer		—		0.00	%		—
Construction		—		0.00	%		6
	$	—		0.80	%		12
Nine Months Ended September 30, 2024
Commercial real estate	$	—		0.00	%		12
Commercial - specialized		—		0.00	%		—
Commercial - general		—		1.75	%		15
Consumer:
1-4 Family residential		—		0.00	%		—
Auto loans		—		0.00	%		—
Other consumer		—		0.00	%		—
Construction		—		4.25	%		6
	$	—		4.15	%		8
Nine Months Ended September 30, 2023
Commercial real estate	$	—		0.00	%		5
Commercial - specialized		—		0.86	%		31
Commercial - general		—		1.81	%		66
Consumer:
1-4 Family residential		—		0.62	%		5
Auto loans		—		0.00	%		6
Other consumer		—		4.75	%		—
Construction		—		0.00	%		5
	$	—		0.98	%		34

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 twelve months (dollars in thousands):

	Current		30-89 Days Past Due		90 Days or More Past Due		Nonaccrual
September 30, 2024
Commercial real estate	$	2,220	$	—	$	—	$	—
Commercial - specialized		—		—		—		14
Commercial - general		969		—		—		80
Consumer:
1-4 Family residential		762		—		21		—
Auto loans		49		—		—		—
Other consumer		—		—		—		—
Construction		1,240		96		—		1,442
	$	5,240	$	96	$	21	$	1,536

SECURITIES, Securities Transferred and Securities Pledged (Details) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2024 USD ($) Security	Dec. 31, 2023 USD ($) 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 \| $	$ 282.9	$ 438.9

SECURITIES, Securities with Unrealized Losses, Available for Sale (Details) $ in Thousands	Sep. 30, 2024 USD ($) Security	Dec. 31, 2023 USD ($)
Available for sale, Fair Value [Abstract]
Less than 12 months	$ 30,620	$ 3,502
12 months or more	574,268	616,800
Total	604,888	620,302
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	31	214
12 months or more	67,042	81,856
Total	$ 67,073	82,070
Number of securities with an unrealized loss \| Security	141
State and Municipal [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	$ 283	207
12 months or more	178,648	177,908
Total	178,931	178,115
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	3	0
12 months or more	19,290	22,241
Total	19,293	22,241
Residential Mortgage-backed Securities [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	0	9
12 months or more	287,736	300,695
Total	287,736	300,704
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	0	0
12 months or more	41,183	50,547
Total	41,183	50,547
Commercial Mortgage-backed Securities [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	0	0
12 months or more	42,296	41,748
Total	42,296	41,748
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	0	0
12 months or more	4,637	6,150
Total	4,637	6,150
Commercial Collateralized Mortgage Obligations [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	30,337	0
12 months or more	38,548	71,930
Total	68,885	71,930
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	28	0
12 months or more	114	461
Total	142	461
Asset-backed and Other Amortizing Securities [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	0	0
12 months or more	15,855	17,040
Total	15,855	17,040
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	0	0
12 months or more	1,003	1,436
Total	1,003	1,436
Other Securities [Member]
Available for sale, Fair Value [Abstract]
Less than 12 months	0	3,286
12 months or more	11,185	7,479
Total	11,185	10,765
Available for sale, Unrealized Loss [Abstract]
Less than 12 months	0	214
12 months or more	815	1,021
Total	$ 815	$ 1,235

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2024

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 September 30, 2024:

Wholly-Owned, Consolidated Subsidiaries:
City Bank	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

On April 1, 2023, SPFI entered into a Securities Purchase Agreement (“Agreement”) with Alliant Insurance Services, Inc. (“Alliant”), providing for the sale of Windmark Insurance Agency, Inc. (“Windmark”), City Bank’s wholly-owned subsidiary, 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, SPFI received an aggregate purchase price of $36.1 million in exchange for Windmark’s common shares, representing a pre-tax gain of $33.8 million through the nine months ended September 30, 2023. This transaction did not meet the criteria for discontinued operations reporting.

Basis of Presentation and Consolidation –

The consolidated financial statements in this Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2024 (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 U.S. 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, 2023 as filed with the SEC on March 15, 2024 (the “2023 Annual Report on Form 10-K”). 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.

Recent Accounting Pronouncements – 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 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. The amendments in this ASU modify the disclosure or presentation requirements of a variety of Topics in the Codification. Certain of the amendments represent clarifications to, or technical corrections of the current requirements. Each amendment in the ASU will only become effective if the SEC removes the related disclosure or presentation requirement from its existing regulations by June 30, 2027. The amendments in this ASU are not expected to have a material impact on the results of operations or financial position.

ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this ASU require public entities to disclose information about reportable segments’ significant expenses on an interim and annual basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The adoption of ASU 2023-07 is not expected to have a material effect on the Company’s financial statements.

ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU are intended to improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. It also includes certain other amendments intended to improve the effectiveness of income tax disclosures. This ASU is effective for fiscal years beginning after December 15, 2024. The adoption of ASU 2023-09 is not expected to have a material effect on the Company’s financial statements.

Subsequent Events – The Company has evaluated subsequent events and transactions from September 30, 2024 through the date this Form 10-Q was filed with the SEC for potential recognition or disclosure as required by GAAP.

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
EARNINGS PER SHARE [Abstract]
Net income	$ 11,212	$ 13,494	$ 33,220	$ 52,421
Weighted average common shares outstanding - basic (in shares)	16,386,079	16,842,594	16,413,685	16,978,499
Effect of dilutive securities [Abstract]
Stock-based compensation awards (in shares)	670,880	511,588	565,753	462,402
Weighted average common shares outstanding - diluted (in shares)	17,056,959	17,354,182	16,979,438	17,440,901
Basic earnings per share (in dollars per share)	$ 0.68	$ 0.8	$ 2.02	$ 3.09
Diluted earnings per share (in dollars per share)	$ 0.66	$ 0.78	$ 1.96	$ 3.01

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

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.

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

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

SECURITIES (Tables)

9 Months Ended

Sep. 30, 2024

SECURITIES [Abstract]

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses		Fair Value
September 30, 2024
Available for sale:
State and municipal	$	200,215	$	2	$	(19,293	)	$	—	$	180,924
Residential mortgage-backed securities		328,928		—		(41,183	)		—		287,745
Commercial mortgage-backed securities		46,932		—		(4,637	)		—		42,295
Commercial collateralized mortgage obligations		69,027		—		(142	)		—		68,885
Asset-backed and other amortizing securities		16,858		—		(1,003	)		—		15,855
Other securities		12,000		—		(815	)		—		11,185
	$	673,960	$	2	$	(67,073	)	$	—	$	606,889

December 31, 2023
Available for sale:
State and municipal	$	202,814	$	2	$	(22,241	)	$	—	$	180,575
Residential mortgage-backed securities		351,251		—		(50,547	)		—		300,704
Commercial mortgage-backed securities		47,898		—		(6,150	)		—		41,748
Commercial collateralized mortgage obligations		72,391		—		(461	)		—		71,930
Asset-backed and other amortizing securities		18,476		—		(1,436	)		—		17,040
Other securities		12,000		—		(1,235	)		—		10,765
	$	704,830	$	2	$	(82,070	)	$	—	$	622,762

Amortized Cost and Fair Value of Securities by Contractual Maturity

	Available for Sale
	Amortized Cost		Fair Value
Within 1 year	$	2,541	$	2,521
After 1 year through 5 years		4,521		4,427
After 5 years through 10 years		15,801		14,963
After 10 years		189,352		170,198
Declining-balance securities		461,745		414,780
	$	673,960	$	606,889

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
September 30, 2024
State and municipal	$	283	$	3	$	178,648	$	19,290	$	178,931	$	19,293
Residential mortgage-backed securities		—		—		287,736		41,183		287,736		41,183
Commercial mortgage-backed securities		—		—		42,296		4,637		42,296		4,637
Commercial collateralized mortgage obligations		30,337		28		38,548		114		68,885		142
Asset-backed and other amortizing securities		—		—		15,855		1,003		15,855		1,003
Other securities		—		—		11,185		815		11,185		815
	$	30,620	$	31	$	574,268	$	67,042	$	604,888	$	67,073

December 31, 2023
State and municipal	$	207	$	—	$	177,908	$	22,241	$	178,115	$	22,241
Residential mortgage-backed securities		9		—		300,695		50,547		300,704		50,547
Commercial mortgage-backed securities		—		—		41,748		6,150		41,748		6,150
Commercial collateralized mortgage obligations		—		—		71,930		461		71,930		461
Asset-backed and other amortizing securities		—		—		17,040		1,436		17,040		1,436
Other securities		3,286		214		7,479		1,021		10,765		1,235
	$	3,502	$	214	$	616,800	$	81,856	$	620,302	$	82,070

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

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FAIR VALUE DISCLOSURES

9 Months Ended

Sep. 30, 2024

FAIR VALUE DISCLOSURES [Abstract]

FAIR VALUE DISCLOSURES

12. 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 as of the dates indicated below (dollars in thousands):

	Level 1		Level 2			Level 3		Total
September 30, 2024
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
State and municipal	$	—	$	180,924		$	—	$	180,924
Residential mortgage-backed securities		—		287,745			—		287,745
Commercial mortgage-backed securities		—		42,295			—		42,295
Commercial collateralized mortgage obligations		—		68,885			—		68,885
Asset-backed and other amortizing securities		—		15,855			—		15,855
Other securities		—		11,185			—		11,185
Loans held for sale (mandatory)		—		9,490			—		9,490
Mortgage servicing rights		—		—			24,573		24,573
Asset derivatives		—		13,600			—		13,600
Liability derivatives		—		(102	)		—		(102	)

Assets measured at fair value on a non-recurring basis:
Loans held for investment		—		—			20,905		20,905

December 31, 2023
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
State and municipal	$	—	$	180,575		$	—	$	180,575
Residential mortgage-backed securities		—		300,704			—		300,704
Commercial mortgage-backed securities		—		41,748			—		41,748
Commercial collateralized mortgage obligations		—		71,930			—		71,930
Asset-backed and other amortizing securities		—		17,040			—		17,040
Other securities		—		10,765			—		10,765
Loans held for sale (mandatory)		—		6,615			—		6,615
Mortgage servicing rights		—		—			26,569		26,569
Asset derivatives		—		17,230			—		17,230
Liability derivatives		—		(432	)		—		(432	)

Assets measured at fair value on a non-recurring basis:
Loans held for investment		—		—			1,482		1,482

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 and nine months ended September 30, 2024 and 2023.

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 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 September 30, 2024, and December 31, 2023, 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 September 30, 2024 and December 31, 2023 the aggregate fair value of loans held for sale for mandatory delivery was $9.5 million and $6.6 million, respectively. The aggregate unpaid principal balance as of the same dates was $9.3 million and $6.4 million, respectively, representing differences between fair value and unpaid principal balance of $216 thousand and $190 thousand, respectively. The Company had no loans held for sale for mandatory delivery designated as nonaccrual or 90 days or more past due at each of September 30, 2024 and December 31, 2023.

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 Consolidated Statements of Comprehensive Income (Loss). For the three months ended September 30, 2024 and 2023 the net (gain) loss amount totaled $94 thousand and $330 thousand, respectively. For the nine months ended September 30, 2024 and 2023 the net (gain) loss amount totaled $(246) thousand and $78 thousand, 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
September 30, 2024
Non-recurring:
Loans held for investment	$	20,905	Third party appraisals or inspections	Collateral discounts and selling costs		20	%
Recurring:
Mortgage servicing rights		24,573	Discounted cash flows	Constant prepayment rate		8.60	%
				Discount rate		10.17	%

December 31, 2023
Non-recurring:
Loans held for investment	$	1,482	Third party appraisals or inspections	Collateral discounts and selling costs		20%-100	%
Recurring:
Mortgage servicing rights		26,569	Discounted cash flows	Constant prepayment rate		7.46	%
				Discount rate		10.66	%

	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value

September 30, 2024
Financial assets:
Cash and cash equivalents	$	471,167	$	471,167	$	—	$	—	$	471,167
Loans held for investment, net		2,994,489		—		—		2,903,905		2,903,905
Loans held for sale (best efforts)		1,899		—		1,945		—		1,945
Accrued interest receivable		19,155		—		19,155		—		19,155
Financial liabilities:
Deposits		3,719,360		—		3,719,388		—		3,719,388
Accrued interest payable		4,603		—		4,603		—		4,603
Junior subordinated deferrable interest debentures		46,393		—		33,740		—		33,740
Subordinated debt		63,914		—		59,174		—		59,174

December 31, 2023
Financial assets:
Cash and cash equivalents	$	330,158	$	330,158	$	—	$	—	$	330,158
Loans held for investment, net		2,971,797		—		—		2,848,536		2,848,536
Loans held for sale (best efforts)		7,884		—		7,977		—		7,977
Accrued interest receivable		20,881		—		20,881		—		20,881
Financial liabilities:
Deposits		3,626,153		—		3,625,321		—		3,625,321
Accrued interest payable		5,057		—		5,057		—		5,057
Junior subordinated deferrable interest debentures		46,393		—		33,098		—		33,098
Subordinated debt		63,775		—		57,497		—		57,497

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.

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