0001628280-23-036704 | 10-Q | XBRL Viewer

ACQUISITIONS

9 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Town and Country Financial Corporation

On February 1, 2023, HBT Financial acquired 100% of the issued and outstanding common stock of Town and Country Financial Corporation (“Town and Country”), the holding company for Town and Country Bank, pursuant to an Agreement and Plan of Merger dated August 23, 2022. Under the Agreement and Plan of Merger, Town and Country merged with and into HBT Financial, with HBT Financial as the surviving entity, immediately followed by the merger of Town and Country Bank with and into Heartland Bank, with Heartland Bank as the surviving entity.

At the effective time of the merger, each share of Town and Country was converted into the right to receive, subject to the election and proration procedures as provided in the Merger Agreement, one of the following: (i) 1.9010 shares of HBT Financial’s common stock, or (ii) $35.66 in cash, or (iii) a combination of cash and HBT Financial common stock. Total consideration consisted of 3,378,600 shares of HBT Financial’s common stock and $38.0 million in cash. In lieu of fractional shares, holders of Town and Country common stock received cash. Based upon the closing price of HBT Financial common stock of $21.12 on February 1, 2023, the aggregate transaction value was approximately $109.4 million.

This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the date of acquisition. Fair values are subject to refinement for up to one year after the closing date of February 1, 2023. Measurement period adjustments of $0.1 million were recorded in the third quarter of 2023 as more information became available regarding Town and Country's tax assets and liabilities. Goodwill of $30.5 million was recorded in the acquisition, which reflects expected synergies from combining the operations of HBT Financial and Town and Country, and is nondeductible for tax purposes.

The acquisition of Town and Country further enhanced HBT Financial’s footprint in Central Illinois, and expanded our footprint into metro-east St. Louis. During the three and nine months ended September 30, 2023 and 2022, HBT Financial incurred the following expenses related to the acquisition of Town and Country:


	Three Months Ended				Nine Months Ended
(dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022

PROVISION FOR CREDIT LOSSES	$	—	$	—	$	5,924	$	—
NONINTEREST EXPENSE
Salaries	—		—		3,584		—


Furniture and equipment	—		—		39		—
Data processing	—		—		2,031		—
Marketing and customer relations	—		—		24		—


Loan collection and servicing	—		—		125		—

Legal fees and other noninterest expense	—		462		1,964		462
Total noninterest expense	—		462		7,767		462
Total acquisition-related expenses	$	—	$	462	$	13,691	$	462

The fair value of the assets acquired and liabilities assumed from Town and Country on the acquisition date of February 1, 2023 were as follows (dollars in thousands):


	Fair Value
Assets acquired:
Cash and cash equivalents	$	23,542
Interest-bearing time deposits with banks	249
Debt securities	167,869
Equity securities	90
Restricted stock	2,822
Loans held for sale	1,612

Loans, before allowance for credit losses	635,376
Allowance for credit losses	(1,247)
Loans, net of allowance for credit losses	634,129

Bank owned life insurance	15,782
Bank premises and equipment	14,828
Foreclosed assets	271
Intangible assets	22,282
Mortgage servicing rights	10,469
Investments in unconsolidated subsidiaries	449
Accrued interest receivable	3,113
Other assets	9,151
Total assets acquired	906,658

Liabilities assumed:
Deposits	720,417
FHLB advances	86,439
Junior subordinated debentures	14,949
Other liabilities	5,999
Total liabilities assumed	827,804
Net assets acquired	$	78,854

Consideration paid:
Cash	$	37,996
Common stock	71,356
Total consideration paid	$	109,352

Goodwill	$	30,498

Of the loans acquired, there were $89.8 million which exhibited more-than-insignificant credit deterioration on the acquisition date. The following table provides a summary of these PCD loans at acquisition (dollars in thousands):


Unpaid principal balance	$	89,822
Allowance for credit losses at acquisition	(1,247)
Non-credit discount	(2,218)
Purchase price	$	86,357

Additionally, subsequent to the Town and Country acquisition, HBT Financial recognized an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million through an increase to the provision for credit losses.

The following table provides the pro forma information for the results of operations for the three and nine months ended September 30, 2023 and 2022, as if the acquisition of Town and Country had occurred on January 1, 2022. The pro forma results combine the historical results of Town and Country into HBT Financial’s consolidated statements of income, including the impact of certain acquisition accounting adjustments, which include loan discount accretion, intangible assets amortization, deposit premium amortization, and borrowing premium amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2022. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for credit losses, expense efficiencies or asset dispositions. The acquisition-related expenses that have been recognized are included in net income in the following table.


	Pro Forma				Pro Forma
	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands, except per share data)	2023		2022		2023		2022
Total revenues (net interest income and noninterest income)	$	57,459	$	56,902	$	174,015	$	164,845
Net income	19,497		18,207		47,697		52,617
Earnings per share - basic	0.61		0.57		1.49		1.63
Earnings per share - diluted	0.61		0.56		1.49		1.63

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Activity in Allowance (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jan. 01, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 25,333	$ 37,814	$ 24,734	$ 25,333	$ 23,936
Provision for credit losses		983	386	5,004	(53)
PCD allowance established in acquisition				1,247
Charge-offs		(412)	(222)	(733)	(515)
Recoveries		478	162	1,029	1,692
Ending balance		38,863	25,060	38,863	25,060
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
PCD allowance established in acquisition	200
Ending balance	6,983	6,983		6,983
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	3,279	3,735	2,981	3,279	2,440
Provision for credit losses		515	14	1,693	(189)
PCD allowance established in acquisition				69
Charge-offs		(15)	(17)	(15)	(22)
Recoveries		14	6	45	755
Ending balance		4,249	2,984	4,249	2,984
Commercial and industrial \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Ending balance	(822)	(822)		(822)
Commercial real estate - owner occupied
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,193	2,362	1,224	1,193	1,840
Provision for credit losses		(108)	(65)	336	(781)
PCD allowance established in acquisition				127
Charge-offs		(2)	0	(5)	0
Recoveries		2	1	16	101
Ending balance		2,254	1,160	2,254	1,160
Commercial real estate - owner occupied \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Ending balance	587	587		587
Commercial real estate - non-owner occupied
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	6,721	7,538	6,611	6,721	8,145
Provision for credit losses		248	268	87	(1,536)
PCD allowance established in acquisition				239
Charge-offs		(171)	0	(171)	0
Recoveries		15	3	253	273
Ending balance		7,630	6,882	7,630	6,882
Commercial real estate - non-owner occupied \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Ending balance	501	501		501
Construction and land development
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	4,223	5,834	4,059	4,223	4,914
Provision for credit losses		1,004	316	398	(539)
PCD allowance established in acquisition				240
Charge-offs		0	0	0	0
Recoveries		44	1	52	1
Ending balance		6,882	4,376	6,882	4,376
Construction and land development \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Ending balance	1,969	1,969		1,969
Multi-family
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,472	2,603	1,375	1,472	1,263
Provision for credit losses		(348)	(52)	630	60
PCD allowance established in acquisition				68
Charge-offs		0	0	0	0
Recoveries		280	0	280	0
Ending balance		2,535	1,323	2,535	1,323
Multi-family \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Ending balance	85	85		85
One-to-four family residential
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,759	4,077	1,696	1,759	1,311
Provision for credit losses		(21)	(78)	939	93
PCD allowance established in acquisition				492
Charge-offs		(8)	(18)	(34)	(67)
Recoveries		40	60	135	323
Ending balance		4,088	1,660	4,088	1,660
One-to-four family residential \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Ending balance	797	797		797
Agricultural and farmland
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	796	2,607	924	796	845
Provision for credit losses		(337)	(83)	(100)	(4)
PCD allowance established in acquisition				5
Charge-offs		0	0	0	0
Recoveries		2	0	4	0
Ending balance		2,272	841	2,272	841
Agricultural and farmland \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Ending balance	1,567	1,567		1,567
Municipal, consumer, and other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	5,890	9,058	5,864	5,890	3,178
Provision for credit losses		30	66	1,021	2,843
PCD allowance established in acquisition				7
Charge-offs		(216)	(187)	(508)	(426)
Recoveries		81	91	244	239
Ending balance		8,953	$ 5,834	8,953	$ 5,834
Municipal, consumer, and other \| Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Ending balance	$ 2,299	$ 2,299		$ 2,299

ACQUISITIONS - PCD loans and subsequent changes (Details) - Town and Country - USD ($) $ in Thousands		9 Months Ended
	Feb. 01, 2023	Sep. 30, 2023
Business Acquisition [Line Items]
Unpaid principal balance	$ 89,822
Allowance for credit losses at acquisition	(1,247)
Non-credit discount	(2,218)
Purchase price	$ 86,357
Subsequent adjustment to allowance for credit losses on loans		$ 5,200
Subsequent adjustment to allowance for credit losses on unfunded commitments		$ 700

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Schedule of reconciliations of the numerators and denominators used to compute basic and diluted earnings

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Numerator:
Net income	$	19,715	$	15,627	$	47,396	$	43,316
Earnings allocated to participating securities	(10)		(17)		(26)		(51)
Numerator for earnings per share - basic and diluted	$	19,705	$	15,610	$	47,370	$	43,265

Denominator:
Weighted average common shares outstanding	31,829,250		28,787,662		31,598,650		28,887,757
Dilutive effect of outstanding restricted stock units	137,187		72,643		102,574		56,761
Weighted average common shares outstanding, including all dilutive potential shares	31,966,437		28,860,305		31,701,224		28,944,518

Earnings per share - Basic	$	0.62	$	0.54	$	1.50	$	1.50
Earnings per share - Diluted	$	0.62	$	0.54	$	1.49	$	1.49

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES

9 Months Ended

Sep. 30, 2023

Loans and Leases Receivable Disclosure [Abstract]

Major categories of loans are summarized as follows:


(dollars in thousands)	September 30, 2023		December 31, 2022

Commercial and industrial	$	386,933	$	266,757
Commercial real estate - owner occupied	297,242		218,503
Commercial real estate - non-owner occupied	901,929		713,202
Construction and land development	371,158		360,824
Multi-family	388,742		287,865
One-to-four family residential	488,655		338,253
Agricultural and farmland	275,239		237,746
Municipal, consumer, and other	232,888		197,103
Loans, before allowance for credit losses	3,342,786		2,620,253
Allowance for credit losses	(38,863)		(25,333)
Loans, net of allowance for credit losses	$	3,303,923	$	2,594,920

As of September 30, 2023 and December 31, 2022, commercial and industrial loans include $18 thousand and $28 thousand Paycheck Protection Program (“PPP”) loans, respectively.

Allowance for Credit Losses

Management estimates the allowance for credit losses using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The discounted cash flow method is used to estimate expected credit losses for all loan categories, except for consumer loans where the weighted average remaining maturity method is utilized.

At September 30, 2023, the economic forecast used by management anticipates a mild recession starting in 2024, with the unemployment rate increasing and GDP growth slowing and then shrinking over the next 4 quarters considered in the forecast period. After the forecast period, the Company reverts to long-term averages over a 4-quarter reversion period. Additionally, management may make qualitative adjustments to the loss estimates, as necessary, to reflect other factors that influence credit losses.

The following tables detail activity in the allowance for credit losses for the three and nine months ended September 30:


	Three Months Ended September 30, 2023
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Beginning balance	$	3,735	$	2,362	$	7,538	$	5,834	$	2,603	$	4,077	$	2,607	$	9,058	$	37,814
Provision for credit losses	515		(108)		248		1,004		(348)		(21)		(337)		30		983
Charge-offs	(15)		(2)		(171)		—		—		(8)		—		(216)		(412)
Recoveries	14		2		15		44		280		40		2		81		478
Ending balance	$	4,249	$	2,254	$	7,630	$	6,882	$	2,535	$	4,088	$	2,272	$	8,953	$	38,863

	Three Months Ended September 30, 2022
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Beginning balance	$	2,981	$	1,224	$	6,611	$	4,059	$	1,375	$	1,696	$	924	$	5,864	$	24,734
Provision for loan losses	14		(65)		268		316		(52)		(78)		(83)		66		386
Charge-offs	(17)		—		—		—		—		(18)		—		(187)		(222)
Recoveries	6		1		3		1		—		60		—		91		162
Ending balance	$	2,984	$	1,160	$	6,882	$	4,376	$	1,323	$	1,660	$	841	$	5,834	$	25,060


	Nine Months Ended September 30, 2023
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Beginning balance	$	3,279	$	1,193	$	6,721	$	4,223	$	1,472	$	1,759	$	796	$	5,890	$	25,333
Adoption of ASC 326	(822)		587		501		1,969		85		797		1,567		2,299		6,983
PCD allowance established in acquisition	69		127		239		240		68		492		5		7		1,247
Provision for credit losses	1,693		336		87		398		630		939		(100)		1,021		5,004
Charge-offs	(15)		(5)		(171)		—		—		(34)		—		(508)		(733)
Recoveries	45		16		253		52		280		135		4		244		1,029
Ending balance	$	4,249	$	2,254	$	7,630	$	6,882	$	2,535	$	4,088	$	2,272	$	8,953	$	38,863

	Nine Months Ended September 30, 2022
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Beginning balance	$	2,440	$	1,840	$	8,145	$	4,914	$	1,263	$	1,311	$	845	$	3,178	$	23,936
Provision for loan losses	(189)		(781)		(1,536)		(539)		60		93		(4)		2,843		(53)
Charge-offs	(22)		—		—		—		—		(67)		—		(426)		(515)
Recoveries	755		101		273		1		—		323		—		239		1,692
Ending balance	$	2,984	$	1,160	$	6,882	$	4,376	$	1,323	$	1,660	$	841	$	5,834	$	25,060

Gross charge-offs, further sorted by origination year, were as follows during the three and nine months ended September 30, 2023:


	Gross Charge-Offs for the Three Months Ended September 30, 2023
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2023		2022		2021		2020		2019		Prior

Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	—	$	15	$	—	$	15
Commercial real estate - owner occupied	—		2		—		—		—		—		—		—		2
Commercial real estate - non-owner occupied	—		—		—		—		—		—		171		—		171
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		—		—		—		8		—		—		8
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	141		9		—		—		—		—		66		—		216
Total	$	141	$	11	$	—	$	—	$	—	$	8	$	252	$	—	$	412


	Gross Charge-Offs for the Nine Months Ended September 30, 2023
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2023		2022		2021		2020		2019		Prior

Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	—	$	15	$	—	$	15
Commercial real estate - owner occupied	—		5		—		—		—		—		—		—		5
Commercial real estate - non-owner occupied	—		—		—		—		—		—		171		—		171
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		—		—		1		33		—		—		34
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	276		83		—		9		—		—		140		—		508
Total	$	276	$	88	$	—	$	9	$	1	$	33	$	326	$	—	$	733

The following tables present loans and the related allowance for credit losses by category:


	September 30, 2023
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Loan balances:
Collectively evaluated for impairment	$	386,763	$	297,068	$	888,068	$	370,942	$	388,282	$	482,838	$	275,111	$	217,638	$	3,306,710
Individually evaluated for impairment	170		174		13,861		216		460		5,817		128		15,250		36,076
Total	$	386,933	$	297,242	$	901,929	$	371,158	$	388,742	$	488,655	$	275,239	$	232,888	$	3,342,786

Allowance for credit losses:
Collectively evaluated for impairment	$	4,244	$	2,254	$	6,503	$	6,882	$	2,535	$	3,737	$	2,272	$	5,844	$	34,271
Individually evaluated for impairment	5		—		1,127		—		—		351		—		3,109		4,592
Total	$	4,249	$	2,254	$	7,630	$	6,882	$	2,535	$	4,088	$	2,272	$	8,953	$	38,863

	December 31, 2022
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Loan balances:
Collectively evaluated for impairment	$	261,833	$	203,558	$	671,663	$	359,892	$	287,298	$	325,621	$	233,118	$	184,579	$	2,527,562
Individually evaluated for impairment	4,818		11,366		30,509		82		—		8,399		4,033		12,508		71,715
Acquired with deteriorated credit quality	106		3,579		11,030		850		567		4,233		595		16		20,976
Total	$	266,757	$	218,503	$	713,202	$	360,824	$	287,865	$	338,253	$	237,746	$	197,103	$	2,620,253

Allowance for loan losses:
Collectively evaluated for impairment	$	3,121	$	1,008	$	4,332	$	4,221	$	1,470	$	1,709	$	796	$	2,327	$	18,984
Individually evaluated for impairment	158		168		2,388		—		—		44		—		3,562		6,320
Acquired with deteriorated credit quality	—		17		1		2		2		6		—		1		29
Total	$	3,279	$	1,193	$	6,721	$	4,223	$	1,472	$	1,759	$	796	$	5,890	$	25,333

The following table presents collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans:


	September 30, 2023
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total

Commercial and industrial	$	—	$	—	$	170	$	170	$	5
Commercial real estate - owner occupied	174		—		—		174		—
Commercial real estate - non-owner occupied	13,861		—		—		13,861		1,127
Construction and land development	216		—		—		216		—
Multi-family	460		—		—		460		—
One-to-four family residential	5,817		—		—		5,817		351
Agricultural and farmland	128		—		—		128		—
Municipal, consumer, and other	15,141		31		78		15,250		3,109
Total	$	35,797	$	31	$	248	$	36,076	$	4,592

Accrued interest on loans totaled $17.0 million as of September 30, 2023 and is excluded from the estimate of credit losses.

Pre-ASC 326 Adoption Impaired Loan Disclosures

The following table presents loans individually evaluated for impairment by category of loans:


	December 31, 2022
(dollars in thousands)	Unpaid Principal Balance		Recorded Investment		Related Allowance

With an allowance recorded:
Commercial and industrial	$	268	$	254	$	158
Commercial real estate - owner occupied	635		610		168
Commercial real estate - non-owner occupied	14,269		14,261		2,388
Construction and land development	—		—		—
Multi-family	—		—		—
One-to-four family residential	569		524		44
Agricultural and farmland	—		—		—
Municipal, consumer, and other	8,152		8,131		3,562
Total	$	23,893	$	23,780	$	6,320

With no related allowance:
Commercial and industrial	$	4,564	$	4,564	$	—
Commercial real estate - owner occupied	10,912		10,756		—
Commercial real estate - non-owner occupied	16,327		16,248		—
Construction and land development	92		82		—
Multi-family	—		—		—
One-to-four family residential	9,181		7,875		—
Agricultural and farmland	4,440		4,033		—
Municipal, consumer, and other	4,410		4,377		—
Total	$	49,926	$	47,935	$	—

Total loans individually evaluated for impairment:
Commercial and industrial	$	4,832	$	4,818	$	158
Commercial real estate - owner occupied	11,547		11,366		168
Commercial real estate - non-owner occupied	30,596		30,509		2,388
Construction and land development	92		82		—
Multi-family	—		—		—
One-to-four family residential	9,750		8,399		44
Agricultural and farmland	4,440		4,033		—
Municipal, consumer, and other	12,562		12,508		3,562
Total	$	73,819	$	71,715	$	6,320

The following tables present the average recorded investment and interest income recognized for loans individually evaluated for impairment by category of loans:


	Three Months Ended September 30, 2022
(dollars in thousands)	Average Recorded Investment		Interest Income Recognized

With an allowance recorded:
Commercial and industrial	$	258	$	5
Commercial real estate - owner occupied	739		11
Commercial real estate - non-owner occupied	14,441		185
Construction and land development	—		—
Multi-family	—		—
One-to-four family residential	349		2
Agricultural and farmland	—		—
Municipal, consumer, and other	8,254		66
Total	$	24,041	$	269

With no related allowance:
Commercial and industrial	$	3,894	$	41
Commercial real estate - owner occupied	11,651		141
Commercial real estate - non-owner occupied	17,220		369
Construction and land development	2,010		57
Multi-family	—		—
One-to-four family residential	8,119		99
Agricultural and farmland	425		5
Municipal, consumer, and other	4,457		44
Total	$	47,776	$	756

Total loans individually evaluated for impairment:
Commercial and industrial	$	4,152	$	46
Commercial real estate - owner occupied	12,390		152
Commercial real estate - non-owner occupied	31,661		554
Construction and land development	2,010		57
Multi-family	—		—
One-to-four family residential	8,468		101
Agricultural and farmland	425		5
Municipal, consumer, and other	12,711		110
Total	$	71,817	$	1,025


	Nine Months Ended September 30, 2022
(dollars in thousands)	Average Recorded Investment		Interest Income Recognized

With an allowance recorded:
Commercial and industrial	$	272	$	13
Commercial real estate - owner occupied	1,297		55
Commercial real estate - non-owner occupied	14,631		556
Construction and land development	—		—
Multi-family	—		—
One-to-four family residential	513		11
Agricultural and farmland	—		—
Municipal, consumer, and other	8,368		151
Total	$	25,081	$	786

With no related allowance:
Commercial and industrial	$	12,793	$	397
Commercial real estate - owner occupied	11,524		388
Commercial real estate - non-owner occupied	16,894		907
Construction and land development	2,012		105
Multi-family	—		—
One-to-four family residential	8,341		240
Agricultural and farmland	305		8
Municipal, consumer, and other	4,493		98
Total	$	56,362	$	2,143

Total loans individually evaluated for impairment:
Commercial and industrial	$	13,065	$	410
Commercial real estate - owner occupied	12,821		443
Commercial real estate - non-owner occupied	31,525		1,463
Construction and land development	2,012		105
Multi-family	—		—
One-to-four family residential	8,854		251
Agricultural and farmland	305		8
Municipal, consumer, and other	12,861		249
Total	$	81,443	$	2,929

Changes in the accretable yield for loans acquired with deteriorated credit quality were as follows:


(dollars in thousands)	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022

Beginning balance	$	537	$	413
Reclassification from non-accretable difference	283		500
Accretion income	(58)		(151)
Ending balance	$	762	$	762

Past Due and Nonaccrual Status

Past due status is based on the contractual terms of the loan. Typically, loans are placed on nonaccrual when they reach 90 days past due, or when, in management’s opinion, there is reasonable doubt regarding the collection of the amounts due through the normal means of the borrower. Interest accrued and unpaid at the time a loan is placed on nonaccrual status is reversed from interest income. Interest payments received on nonaccrual loans are recognized in accordance with our significant accounting policies. Once a loan is placed on nonaccrual status, the borrower must generally demonstrate at least six months of payment performance and we must believe that all remaining principal and interest is fully collectible, before the loan is eligible to return to accrual status.

The following tables present loans by category based on current payment and accrual status:


	September 30, 2023
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans

Commercial and industrial	$	386,383	$	380	$	—	$	170	$	386,933
Commercial real estate - owner occupied	297,069		—		—		173		297,242
Commercial real estate - non-owner occupied	900,058		1,605		—		266		901,929
Construction and land development	370,922		20		—		216		371,158
Multi-family	387,966		316		—		460		388,742
One-to-four family residential	481,603		1,897		—		5,155		488,655
Agricultural and farmland	275,096		15		—		128		275,239
Municipal, consumer, and other	232,561		217		—		110		232,888
Total	$	3,331,658	$	4,450	$	—	$	6,678	$	3,342,786


	December 31, 2022
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans

Commercial and industrial	$	266,521	$	17	$	—	$	219	$	266,757
Commercial real estate - owner occupied	218,242		187		—		74		218,503
Commercial real estate - non-owner occupied	713,031		—		—		171		713,202
Construction and land development	360,763		61		—		—		360,824
Multi-family	287,854		11		—		—		287,865
One-to-four family residential	335,576		894		145		1,638		338,253
Agricultural and farmland	237,727		19		—		—		237,746
Municipal, consumer, and other	196,892		157		1		53		197,103
Total	$	2,616,606	$	1,346	$	146	$	2,155	$	2,620,253

The following table presents nonaccrual loans with and without a related allowance for credit losses:


	September 30, 2023
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual

Commercial and industrial	$	127	$	43	$	170
Commercial real estate - owner occupied	—		173		173
Commercial real estate - non-owner occupied	220		46		266
Construction and land development	—		216		216
Multi-family	—		460		460
One-to-four family residential	100		5,055		5,155
Agricultural and farmland	—		128		128
Municipal, consumer, and other	31		79		110
Total	$	478	$	6,200	$	6,678

Credit Quality Indicators

The Company assigns a risk rating to all loans and periodically performs detailed internal reviews of all such loans that are part of relationships with over $750,000 in total exposure to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to review by the Company’s regulators, external loan review, and internal loan review. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate and the fair values of collateral securing the loans. The risk rating is reviewed annually, at a minimum, and on an as needed basis depending on the specific circumstances of the loan. These credit quality indicators are used to assign a risk rating to each individual loan. Risk ratings are grouped into four major categories, defined as follows:

Pass – a pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention.

Pass-Watch – a pass-watch loan is still considered a "pass" credit and is not a classified or criticized asset, but is a reflection of a borrower who exhibits credit weaknesses or downward trends warranting close attention and increased monitoring. These potential weaknesses may result in deterioration of the repayment prospects for the loan. No loss of principal or interest is expected, and the borrower does not pose sufficient risk to warrant classification.

Substandard – a substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized as probable that the borrower will not pay principal and interest in accordance with the contractual terms.

Doubtful – a doubtful loan has all the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The following tables present loans by category based on their assigned risk ratings determined by management:


	September 30, 2023
(dollars in thousands)	Pass		Pass-Watch		Substandard		Doubtful		Total

Commercial and industrial	$	382,041	$	4,114	$	778	$	—	$	386,933
Commercial real estate - owner occupied	279,081		8,249		9,912		—		297,242
Commercial real estate - non-owner occupied	842,816		33,767		25,346		—		901,929
Construction and land development	366,198		4,667		293		—		371,158
Multi-family	363,214		24,753		775		—		388,742
One-to-four family residential	468,736		7,572		12,347		—		488,655
Agricultural and farmland	266,353		5,466		3,420		—		275,239
Municipal, consumer, and other	215,726		1,771		15,391		—		232,888
Total	$	3,184,165	$	90,359	$	68,262	$	—	$	3,342,786


	December 31, 2022
(dollars in thousands)	Pass		Pass-Watch		Substandard		Doubtful		Total

Commercial and industrial	$	255,309	$	6,630	$	4,818	$	—	$	266,757
Commercial real estate - owner occupied	198,546		10,105		9,852		—		218,503
Commercial real estate - non-owner occupied	652,691		27,282		33,229		—		713,202
Construction and land development	358,215		2,527		82		—		360,824
Multi-family	283,682		4,183		—		—		287,865
One-to-four family residential	323,632		5,907		8,714		—		338,253
Agricultural and farmland	223,114		10,004		4,628		—		237,746
Municipal, consumer, and other	184,299		296		12,508		—		197,103
Total	$	2,479,488	$	66,934	$	73,831	$	—	$	2,620,253

SECURITIES - Sale and Gain (loss) on securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net unrealized gains (losses) on equity securities:
Readily determinable fair value	$ (46)	$ (107)	$ 77	$ (447)
No readily determinable fair value	0	0	(138)	0
Unrealized gains (losses) on equity securities	$ (46)	$ (107)	$ (61)	$ (447)

COMMITMENTS AND CONTINGENCIES - Legal Contingencies (Details) - USD ($) $ in Thousands				3 Months Ended
	Aug. 16, 2023	May 15, 2023	Feb. 20, 2023	Sep. 30, 2023	Dec. 31, 2022	Jun. 30, 2023	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Litigation
Allowance for Credit Losses				$ 38,863	$ 25,333	$ 37,814	$ 25,060	$ 24,734	$ 23,936
Allowance for credit losses on unfunded commitments
Litigation
Allowance for Credit Losses				4,400	0
TGC Cases
Litigation
Settlement amount	$ 13,000		$ 13,000
Accrual recorded				13,000	13,000
Insurance recovery receivable				7,400	7,400
Net settlement amount included in other noninterest expense					5,600
DeBaere and Miller cases
Litigation
Settlement amount		$ 3,400
Accrual recorded				3,400	2,600
Accrual included in other noninterest expense				$ 800	$ 2,600

ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

ACCOUNTING POLICIES

Basis of Presentation

HBT Financial, Inc. (“HBT Financial” or the “Company”) is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company (“Heartland Bank” or the “Bank”). The Bank provides a comprehensive suite of business, commercial, wealth management and retail banking products and services to individuals, businesses, and municipal entities throughout Illinois and Eastern Iowa. Additionally, the Company is subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory agencies.

The unaudited consolidated financial statements, including the notes thereto, have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) interim reporting requirements. Certain information in footnote disclosures normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to rules and regulations of the SEC. These interim unaudited consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 8, 2023.

The unaudited consolidated financial statements include all normal, recurring adjustments necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year.

The Company qualifies as an "emerging growth company" as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). The JOBS Act permits emerging growth companies an extended transition period for complying with new or revised accounting standards affecting public companies. The Company may remain an emerging growth company until the earliest to occur of: (1) the end of the fiscal year following the fifth anniversary of the completion of our initial public offering, which is December 31, 2024, (2) the last day of the fiscal year in which the Company has $1.235 billion or more in annual revenues, (3) the date on which the Company is deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) or (4) the date on which the Company has, during the previous three year period, issued, publicly or privately, more than $1.0 billion in non-convertible debt securities. The Company has elected to use the extended transition period until the Company is no longer an emerging growth company or until the Company chooses to affirmatively and irrevocably opt out of the extended transition period. As a result, the Company’s financial statements may not be comparable to companies that comply with new or revised accounting pronouncements applicable to public companies.

Use of Estimates

The accompanying consolidated financial statements have been prepared in conformity with GAAP. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended.

Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses and fair value of assets acquired and liabilities assumed in business combinations.

Segment Reporting

The Company’s operations consist of one reportable segment. The Company’s chief operating decision maker evaluates the operations of the Company using consolidated information for purposes of allocating resources and assessing performance.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or stockholders’ equity.

Subsequent Events

In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.

Impact of Recently Adopted Accounting Standards

On January 1, 2023, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended, which replaces the incurred loss methodology with an expected loss methodology, commonly referred to as the current expected credit losses (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and debt securities held-to-maturity. It also applies to off-balance sheet credit exposures not accounted for as insurance, such as loan commitments and letters of credit. In addition, Accounting Standards Codification (“ASC”) 326 made changes to the accounting for debt securities available-for-sale. One such change is to require credit losses be presented as an allowance rather than as a write-down on debt securities available-for-sale management does not intend to sell or believes that it is more likely than not they will be required to sell.

The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for reporting periods beginning after December 31, 2022 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $6.9 million as of January 1, 2023 for the cumulative effect of adopting ASC 326. The following table illustrates the impact of ASC 326 on the allowance for credit losses:


	January 1, 2023
(dollars in thousands)	Pre-ASC 326 Adoption		Impact of ASC 326 Adoption		As Reported under ASC 326

Assets:
Allowance for credit losses on loans
Commercial and industrial	$	3,279	$	(822)	$	2,457
Commercial real estate - owner occupied	1,193		587		1,780
Commercial real estate - non-owner occupied	6,721		501		7,222
Construction and land development	4,223		1,969		6,192
Multi-family	1,472		85		1,557
One-to-four family residential	1,759		797		2,556
Agricultural and farmland	796		1,567		2,363
Municipal, consumer, and other	5,890		2,299		8,189
Allowance for credit losses on loans	$	25,333	$	6,983	$	32,316

Liabilities:
Allowance for credit losses on unfunded commitments	$	—	$	2,899	$	2,899

The Company also adopted ASC 326 using the prospective transition approach for purchase credit deteriorated (“PCD”) financial assets that were previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with ASC 326, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2023, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $0.2 million to the allowance for credit losses. The remaining noncredit discount will be accreted into interest income at the effective interest rate as of January 1, 2023.

On January 1, 2023, the Company also adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. ASU 2022-02 eliminates the recognition and measurement guidance for troubled debt restructurings (“TDRs”) by creditors in ASC 310-40. This ASU also enhances disclosure requirements for certain loan restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity will apply refinancing and restructuring guidance to determine whether a modification or other form of restructuring results in a new loan or a continuation of an existing loan. Additionally, the amendments in ASU 2022-02 require a public business entity to disclosure current-period gross write-offs by year of origination for financing receivables and net investments in leases in the existing vintage disclosures. This standard did not have a material impact on the Company’s consolidated results of operations or financial position.

Recent Accounting Pronouncements

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value and that contractual sale restrictions cannot be recognized and measured as a separate unit of account. The amendments in this update are effective for years beginning after December 15, 2023, including interim periods within those years. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position.

In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging – Portfolio Layer Method. ASU 2022-01 replaces the current last-of-layer hedge accounting method with an expanded portfolio layer method that permits multiple hedged layers of a single closed portfolio. The scope of the portfolio layer method is also expanded to include non-prepayable financial assets. ASU 2022-01 also provides additional guidance on the accounting for and disclosure of hedge basis adjustments that are applicable to the portfolio layer method, and specifies how hedge basis adjustments should be considered when determining credit losses for the assets included in the closed portfolio. Amendments related to hedge basis adjustments which are included in this standard apply on a modified retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings on the initial application date. Amendments related to hedge basis adjustments which are included in this standard apply on a modified retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings on the initial application date. Amendments related to disclosure which are included in this standard may be applied on a prospective basis from the initial application date, or on a retrospective basis to each prior period presented after the date of adoption of the amendments in ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The amendments in this update are effective for years beginning after December 15, 2023, including interim periods within those years. Early adoption is permitted. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform, if certain criteria are met. In January 2021, the FASB also issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which refined the scope for certain optional expedients and exceptions for contract modifications and hedge accounting to apply to derivative contracts and certain hedging relationships affected by the discounting transition. Entities may apply the provisions as of the beginning of the reporting period when the election is made and are available until December 31, 2024. The Company is currently evaluating the effect that this standard will have on the consolidated results of operations and financial position.

In March 2023, the FASB issued ASU 2023-02, Investments—Equity Method and Joint Ventures (Topic 323). ASU 2023-02 permits an election to use the proportional amortization method to account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits, regardless of the tax credit program from which the income tax credits are received, provided that certain conditions are met. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense. ASU 2023-02 must be applied on a retrospective or modified retrospective basis, and is applicable for the Company beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the effect that this standard will have on the consolidated results of operations and financial position.

REGULATORY MATTERS (Tables)

9 Months Ended

Sep. 30, 2023

Banking and Thrift, Other Disclosure [Abstract]

Schedule of the Company's and the bank subsidiaries' actual and required capital amounts and ratios

The actual and required capital amounts and ratios of the Company (on a consolidated basis) and the Bank are as follows:


	September 30, 2023
	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio

Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets)	$	590,174	15.09	%	$	312,868	8.00	%	N/A		N/A
Tier 1 Capital (to Risk Weighted Assets)	515,643		13.18		234,651		6.00		N/A		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	464,483		11.88		175,988		4.50		N/A		N/A
Tier 1 Capital (to Average Assets)	515,643		10.34		199,420		4.00		N/A		N/A

Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	$	577,525	14.78	%	$	312,537	8.00	%	$	390,671	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	542,448		13.89		234,403		6.00		312,537		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	542,448		13.89		175,802		4.50		253,936		6.50
Tier 1 Capital (to Average Assets)	542,448		10.89		199,216		4.00		249,020		5.00


	December 31, 2022
	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio

Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets)	$	516,556	16.27	%	$	254,052	8.00	%	N/A		N/A
Tier 1 Capital (to Risk Weighted Assets)	451,828		14.23		190,539		6.00		N/A		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	415,213		13.07		142,904		4.50		N/A		N/A
Tier 1 Capital (to Average Assets)	451,828		10.48		172,427		4.00		N/A		N/A

Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	$	489,316	15.43	%	$	253,643	8.00	%	$	317,054	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	463,983		14.63		190,233		6.00		253,643		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	463,983		14.63		142,674		4.50		206,085		6.50
Tier 1 Capital (to Average Assets)	463,983		10.78		172,240		4.00		215,300		5.00

FAIR VALUE OF FINANCIAL INSTRUMENTS - Nonrecurring Basis (Details) - Fair Value, Nonrecurring - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	$ 3,563	$ 615
Collateral-dependent loans	31,484	17,460
Bank premises held for sale	35	235
Foreclosed assets	1,519	3,030
Level 1
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	0	0
Collateral-dependent loans	0	0
Bank premises held for sale	0	0
Foreclosed assets	0	0
Level 2
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	3,563	615
Collateral-dependent loans	0	0
Bank premises held for sale	0	0
Foreclosed assets	0	0
Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	0	0
Collateral-dependent loans	31,484	17,460
Bank premises held for sale	35	235
Foreclosed assets	$ 1,519	$ 3,030

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Surplus	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Beginning balance (in shares) at Dec. 31, 2021			28,986,061
Beginning balance at Dec. 31, 2021	$ 411,881		$ 293	$ 220,891	$ 194,132		$ 1,471	$ (4,906)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	43,316				43,316
Other comprehensive loss	(78,933)						(78,933)
Stock-based compensation	1,602			1,602
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings (in shares)			31,944
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings	(57)			(57)
Repurchase of common stock (in shares)			(265,379)
Repurchase of common stock	(4,783)							(4,783)
Cash dividends and dividend equivalents	(13,953)				(13,953)
Ending balance (in shares) at Sep. 30, 2022			28,752,626
Ending balance at Sep. 30, 2022	359,073		$ 293	222,436	223,495		(77,462)	(9,689)
Beginning balance (in shares) at Jun. 30, 2022			28,831,197
Beginning balance at Jun. 30, 2022	373,809		$ 293	222,087	212,506		(52,820)	(8,257)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	15,627				15,627
Other comprehensive loss	(24,642)						(24,642)
Stock-based compensation	349			349
Repurchase of common stock (in shares)			(78,571)
Repurchase of common stock	(1,432)							(1,432)
Cash dividends and dividend equivalents	(4,638)				(4,638)
Ending balance (in shares) at Sep. 30, 2022			28,752,626
Ending balance at Sep. 30, 2022	359,073		$ 293	222,436	223,495		(77,462)	(9,689)
Beginning balance (in shares) at Dec. 31, 2022			28,752,626
Beginning balance at Dec. 31, 2022	373,632	$ (6,922)	$ 293	222,783	232,004	$ (6,922)	(71,759)	(9,689)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	47,396				47,396
Other comprehensive loss	(6,673)						(6,673)
Stock-based compensation	1,559			1,559
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings (in shares)			43,607
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings	(181)			(181)
Issuance of common stock in town and country acquisition (in shares)			3,378,600
Issuance of common stock in Town and Country acquisition	71,356		$ 34	71,322
Repurchase of common stock (in shares)			(400,693)
Repurchase of common stock	(7,488)							(7,488)
Cash dividends and dividend equivalents	(16,428)				(16,428)
Ending balance (in shares) at Sep. 30, 2023			31,774,140
Ending balance at Sep. 30, 2023	$ 456,251		$ 327	295,483	256,050		(78,432)	(17,177)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13 [Member]
Beginning balance (in shares) at Jun. 30, 2023			31,865,868
Beginning balance at Jun. 30, 2023	$ 450,852		$ 327	294,875	241,777		(70,662)	(15,465)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,715				19,715
Other comprehensive loss	(7,770)						(7,770)
Stock-based compensation	608			608
Repurchase of common stock (in shares)			(91,728)
Repurchase of common stock	(1,712)							(1,712)
Cash dividends and dividend equivalents	(5,442)				(5,442)
Ending balance (in shares) at Sep. 30, 2023			31,774,140
Ending balance at Sep. 30, 2023	$ 456,251		$ 327	$ 295,483	$ 256,050		$ (78,432)	$ (17,177)

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Non-accrual loans (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	$ 478,000
Nonaccrual With No Allowance for Credit Losses	6,200,000
Total Nonaccrual	6,678,000	$ 2,155,000
Commercial and industrial
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	127,000
Nonaccrual With No Allowance for Credit Losses	43,000
Total Nonaccrual	170,000	219,000
Commercial real estate - owner occupied
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	0
Nonaccrual With No Allowance for Credit Losses	173,000
Total Nonaccrual	173,000	74,000
Commercial real estate - non-owner occupied
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	220,000
Nonaccrual With No Allowance for Credit Losses	46,000
Total Nonaccrual	266,000	171,000
Construction and land development
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	0
Nonaccrual With No Allowance for Credit Losses	216,000
Total Nonaccrual	216,000	0
Multi-family
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	0
Nonaccrual With No Allowance for Credit Losses	460,000
Total Nonaccrual	460,000	0
One-to-four family residential
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	100,000
Nonaccrual With No Allowance for Credit Losses	5,055,000
Total Nonaccrual	5,155,000	1,638,000
Agricultural and farmland
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	0
Nonaccrual With No Allowance for Credit Losses	128,000
Total Nonaccrual	128,000	0
Municipal, consumer, and other
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	31,000
Nonaccrual With No Allowance for Credit Losses	79,000
Total Nonaccrual	$ 110,000	$ 53,000

SECURITIES - Equity securities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Readily Determinable Fair Value
Initial cost	$ 3,142	$ 3,142
Cumulative net unrealized gains (losses)	(36)	(113)
Carrying value	3,106	3,029
No Readily Determinable Fair Value
Initial cost	2,603	2,142
Cumulative net unrealized gains (losses)	(303)	(165)
Carrying value	$ 2,300	$ 1,977

SECURITIES

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

SECURITIES

Debt Securities

The amortized cost and fair values of debt securities, with gross unrealized gains and losses and allowance for credit losses, are as follows:


	September 30, 2023
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value

Available-for-sale:
U.S. Treasury	$	169,751	$	—	$	(15,357)	$	—	$	154,394
U.S. government agency	55,483		—		(4,768)		—		50,715
Municipal	231,444		1		(36,244)		—		195,201
Mortgage-backed:
Agency residential	197,549		9		(20,508)		—		177,050
Agency commercial	142,920		2		(18,593)		—		124,329
Corporate	57,649		—		(6,175)		—		51,474
Total available-for-sale	$	854,796	$	12	$	(101,645)	$	—	$	753,163

	September 30, 2023
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses

Held-to-maturity:
U.S. government agency	$	88,442	$	—	$	(12,392)	$	76,050	$	—
Municipal	39,344		6		(1,686)		37,664		—
Mortgage-backed:
Agency residential	98,115		—		(9,281)		88,834		—
Agency commercial	301,243		—		(53,478)		247,765		—
Total held-to-maturity	$	527,144	$	6	$	(76,837)	$	450,313	$	—


	December 31, 2022
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Available-for-sale:
U.S. Treasury	$	169,860	$	—	$	(15,345)	$	154,515
U.S. government agency	59,291		—		(4,134)		55,157
Municipal	275,972		46		(32,189)		243,829
Mortgage-backed:
Agency residential	213,676		5		(18,240)		195,441
Agency commercial	150,060		—		(17,172)		132,888
Corporate	65,597		55		(3,958)		61,694
Total available-for-sale	$	934,456	$	106	$	(91,038)	$	843,524

	December 31, 2022
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Held-to-maturity:
U.S. government agency	$	88,424	$	—	$	(9,728)	$	78,696
Municipal	42,167		195		(314)		42,048
Mortgage-backed:
Agency residential	102,728		—		(6,470)		96,258
Agency commercial	308,281		—		(46,482)		261,799
Total held-to-maturity	$	541,600	$	195	$	(62,994)	$	478,801

On March 31, 2022, the Company transferred certain debt securities from the available-for-sale category to the held-to-maturity category in order to better reflect the revised intentions of the Company due to possible market value volatility, resulting from a potential rise in interest rates. The following is a summary of the amortized cost and fair value of securities transferred to the held-to-maturity category:


	March 31, 2022
(dollars in thousands)	Amortized Cost		Fair Value

U.S. government agency	$	78,841	$	71,048
Mortgage-backed:
Agency residential	8,175		7,651
Agency commercial	27,834		25,432
Total	$	114,850	$	104,131

The debt securities were transferred between categories at fair value, with the transfer date fair value becoming the new amortized cost for each security transferred. The unrealized gain (loss), net of tax, at the date of transfer remains a component of accumulated other comprehensive income, but will be amortized over the remaining life of the debt securities as an adjustment of yield in a manner consistent with amortization of any premium or discount. As a result, the amortization of an unrealized gain (loss) reported in accumulated other comprehensive income will offset or mitigate the effect on interest income of the amortization of the premium or discount for that held-to-maturity debt security.

As of September 30, 2023 and December 31, 2022, the Bank had debt securities with a carrying value of $449.2 million and $332.6 million, respectively, which were pledged to secure public deposits, securities sold under agreements to repurchase, and for other purposes required or permitted by law.

The amortized cost and fair value of debt securities by contractual maturity, as of September 30, 2023, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Available-for-Sale				Held-to-Maturity
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value

Due in 1 year or less	$	34,149	$	33,546	$	2,643	$	2,634
Due after 1 year through 5 years	213,534		197,634		34,215		31,718
Due after 5 years through 10 years	217,279		180,780		85,250		74,459
Due after 10 years	49,365		39,824		5,678		4,903

Mortgage-backed:
Agency residential	197,549		177,050		98,115		88,834
Agency commercial	142,920		124,329		301,243		247,765
Total	$	854,796	$	753,163	$	527,144	$	450,313

The following table presents gross unrealized losses and fair value of debt securities available-for-sale that do not have an associated allowance for credit losses as of September 30, 2023, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position:


	September 30, 2023
	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
(dollars in thousands)	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value

Available-for-sale:
U.S. Treasury	$	—	$	—	$	(15,357)	$	154,394	$	(15,357)	$	154,394
U.S. government agency	(5)		1,380		(4,763)		49,298		(4,768)		50,678
Municipal	(282)		10,479		(35,962)		183,720		(36,244)		194,199
Mortgage-backed:
Agency residential	(725)		13,924		(19,783)		160,778		(20,508)		174,702
Agency commercial	(86)		3,645		(18,507)		120,593		(18,593)		124,238
Corporate	(443)		6,317		(5,732)		45,156		(6,175)		51,473
Total available-for-sale	$	(1,541)	$	35,745	$	(100,104)	$	713,939	$	(101,645)	$	749,684

The following table presents gross unrealized losses and fair value of debt securities, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position, as of December 31, 2022:


	December 31, 2022
	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
(dollars in thousands)	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value

Available-for-sale:
U.S. Treasury	$	(8,401)	$	92,445	$	(6,944)	$	62,070	$	(15,345)	$	154,515
U.S. government agency	(2,980)		47,370		(1,154)		7,787		(4,134)		55,157
Municipal	(10,906)		149,261		(21,283)		87,794		(32,189)		237,055
Mortgage-backed:
Agency residential	(8,332)		127,288		(9,908)		65,692		(18,240)		192,980
Agency commercial	(4,764)		62,672		(12,408)		70,216		(17,172)		132,888
Corporate	(2,594)		52,190		(1,364)		5,600		(3,958)		57,790
Total available-for-sale	(37,977)		531,226		(53,061)		299,159		(91,038)		830,385
Held-to-maturity:
U.S. government agency	(1,754)		15,751		(7,974)		62,945		(9,728)		78,696
Municipal	(314)		23,433		—		—		(314)		23,433
Mortgage-backed:
Agency residential	(4,039)		78,452		(2,431)		17,806		(6,470)		96,258
Agency commercial	(16,716)		103,298		(29,766)		158,501		(46,482)		261,799
Total held-to-maturity	(22,823)		220,934		(40,171)		239,252		(62,994)		460,186
Total debt securities	$	(60,800)	$	752,160	$	(93,232)	$	538,411	$	(154,032)	$	1,290,571

As of September 30, 2023, there were 669 debt securities in an unrealized loss position for a period of twelve months or more, and 225 debt securities in an unrealized loss position for a period of less than twelve months.

U.S. Treasury, U.S. government agency, and agency mortgage-backed securities are considered to have no risk of credit loss as they are either explicitly or implicitly guaranteed by the U.S. government. The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as prepayment and liquidity risks.

Municipal securities include approximately 79% general obligation bonds as of September 30, 2023, which have a very low historical default rate due to issuers generally having taxing authority to service the debt. The remainder of the municipal securities are also of high credit quality with ratings of A+/A1 or better. The Company evaluates credit risk through monitoring credit ratings and reviews of available financial data. The changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks. The estimated allowance for credit losses for the municipal debt securities held-to-maturity was deemed insignificant.

Corporate securities include investment grade corporate and bank subordinated debt securities. The Company evaluates credit risk through monitoring credit ratings, reviews of available issuer financial data, and sector trends. There was no allowance for credit losses on corporate securities recorded as of September 30, 2023. A negative provision for credit losses of $0.8 million was recorded during the three months ended September 30, 2023, reversing the provision for credit losses recognized during the first half of 2023, related to one bank subordinated debt security. The initial provision for credit losses recognized during the first half of 2023 reflected heightened potential credit risk following the recent failures of other banks, but this heightened potential credit risk was reduced after a merger announcement by the issuer of the bank subordinated debt security. As of September 30, 2023, the changes in fair value in these portfolios are considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks.

As of September 30, 2023, the Company did not intend to sell the debt securities that are in an unrealized or unrecognized loss position, and it was more likely than not that the Company would recover the amortized cost prior to being required to sell the debt securities.

Accrued interest on debt securities totaled $6.2 million as of September 30, 2023 and is excluded from the estimate of credit losses.

Sales of debt securities were as follows during the three and nine months ended September 30:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Proceeds from sales	$	39,436	$	—	$	185,280	$	—
Gross realized gains	—		—		—		—
Gross realized losses	(813)		—		(1,820)		—

Equity Securities

Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in unrealized gains (losses) on equity securities on the consolidated statements of income. The Company has elected to measure equity securities with no readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes for identical or similar securities of the same issuer.

The initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses are as follows:


	September 30, 2023
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value

Initial cost	$	3,142	$	2,603
Cumulative net unrealized gains (losses)	(36)		(303)
Carrying value	$	3,106	$	2,300


	December 31, 2022
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value

Initial cost	$	3,142	$	2,142
Cumulative net unrealized gains (losses)	(113)		(165)
Carrying value	$	3,029	$	1,977

As of September 30, 2023, the cumulative net unrealized losses on equity securities with no readily determinable fair value reflect impairments of $0.1 million and downward adjustments based on observable price changes of an identical investment of $0.2 million. As of December 31, 2022, the cumulative net unrealized losses on equity securities with no readily determinable fair value reflect downward adjustments based on observable price changes of an identical investment. There have been no upward adjustments based on observable price changes to equity securities with no readily determinable fair value.

There were no sales of equity securities during the three and nine months ended September 30, 2023 and 2022. Unrealized gains (losses) on equity securities were as follows during the three and nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Readily determinable fair value	$	(46)	$	(107)	$	77	$	(447)
No readily determinable fair value	—		—		(138)		—
Unrealized gains (losses) on equity securities	$	(46)	$	(107)	$	(61)	$	(447)

LOAN SERVICING

9 Months Ended

Sep. 30, 2023

Transfers and Servicing [Abstract]

LOAN SERVICING

Mortgage loans serviced for others, which are not included in the accompanying consolidated balance sheets, amounted to $1.69 billion and $955.8 million as of September 30, 2023 and December 31, 2022, respectively. Activity in mortgage servicing rights is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Beginning balance	$	20,133	$	10,089	$	10,147	$	7,994
Acquired	—		—		10,469		—
Capitalized servicing rights	227		144		526		451
Fair value adjustment:
Attributable to payments and principal reductions	(631)		(362)		(1,621)		(1,048)
Attributable to changes in valuation inputs and assumptions	427		569		635		3,043
Total fair value adjustment	(204)		207		(986)		1,995
Ending balance	$	20,156	$	10,440	$	20,156	$	10,440

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481420/860-30-50-1A

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)(7)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-4

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-3

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-3

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-4

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(11))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479617/946-210-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-3

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)(4)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-3

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)(5)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-3

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//860/tableOfContent

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-3

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (cc)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-3

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-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)(5)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-4

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-4

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4D
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481326/860-20-50-4D

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481420/860-30-50-1A

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481420/860-30-50-7

Reference 19: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-2

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-2

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481229/860-50-50-4

+ Details

FAIR VALUE OF FINANCIAL INSTRUMENTS - Mortgage Servicing Rights (Details) $ in Thousands	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 20,156	$ 10,147
Fair Value, Recurring
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	20,156	10,147
Fair Value, Recurring \| Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 20,156	$ 10,147
Valuation Technique	Valuation Technique, Discounted Cash Flow [Member]	Valuation Technique, Discounted Cash Flow [Member]
Fair Value, Recurring \| Level 3 \| Measurement Input, Constant Prepayment Rate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 20,156	$ 10,147
Fair Value, Recurring \| Level 3 \| Measurement Input, Constant Prepayment Rate \| Minimum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.065	0.053
Fair Value, Recurring \| Level 3 \| Measurement Input, Constant Prepayment Rate \| Maximum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.415	0.597
Fair Value, Recurring \| Level 3 \| Measurement Input, Constant Prepayment Rate \| Weighted Average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.082	0.082
Fair Value, Recurring \| Level 3 \| Measurement Input, Discount Rate \| Minimum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.090	0.090
Fair Value, Recurring \| Level 3 \| Measurement Input, Discount Rate \| Maximum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.459	0.117
Fair Value, Recurring \| Level 3 \| Measurement Input, Discount Rate \| Weighted Average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.098	0.093

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Troubled Debt Restructurings, Pledged loans (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Troubled debt restructurings		$ 3,000
Loans	$ 3,303,923	2,594,920
Pledged assets
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans	$ 1,070,000	$ 892,100

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Stockholders' Equity
Debt securities held-to-maturity	$ 450,313	$ 478,801
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	25,000,000	25,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	125,000,000	125,000,000
Common stock, issued (in shares)	32,730,698	29,308,491
Common stock, outstanding (in shares)	31,774,140	28,752,626
Treasury stock, (in shares)	956,558	555,865

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2023

Loans and Leases Receivable Disclosure [Abstract]

Summary of Loans

Major categories of loans are summarized as follows:


(dollars in thousands)	September 30, 2023		December 31, 2022

Commercial and industrial	$	386,933	$	266,757
Commercial real estate - owner occupied	297,242		218,503
Commercial real estate - non-owner occupied	901,929		713,202
Construction and land development	371,158		360,824
Multi-family	388,742		287,865
One-to-four family residential	488,655		338,253
Agricultural and farmland	275,239		237,746
Municipal, consumer, and other	232,888		197,103
Loans, before allowance for credit losses	3,342,786		2,620,253
Allowance for credit losses	(38,863)		(25,333)
Loans, net of allowance for credit losses	$	3,303,923	$	2,594,920

Schedule of activity in allowance for loan losses

The following tables detail activity in the allowance for credit losses for the three and nine months ended September 30:


	Three Months Ended September 30, 2023
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Beginning balance	$	3,735	$	2,362	$	7,538	$	5,834	$	2,603	$	4,077	$	2,607	$	9,058	$	37,814
Provision for credit losses	515		(108)		248		1,004		(348)		(21)		(337)		30		983
Charge-offs	(15)		(2)		(171)		—		—		(8)		—		(216)		(412)
Recoveries	14		2		15		44		280		40		2		81		478
Ending balance	$	4,249	$	2,254	$	7,630	$	6,882	$	2,535	$	4,088	$	2,272	$	8,953	$	38,863

	Three Months Ended September 30, 2022
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Beginning balance	$	2,981	$	1,224	$	6,611	$	4,059	$	1,375	$	1,696	$	924	$	5,864	$	24,734
Provision for loan losses	14		(65)		268		316		(52)		(78)		(83)		66		386
Charge-offs	(17)		—		—		—		—		(18)		—		(187)		(222)
Recoveries	6		1		3		1		—		60		—		91		162
Ending balance	$	2,984	$	1,160	$	6,882	$	4,376	$	1,323	$	1,660	$	841	$	5,834	$	25,060


	Nine Months Ended September 30, 2023
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Beginning balance	$	3,279	$	1,193	$	6,721	$	4,223	$	1,472	$	1,759	$	796	$	5,890	$	25,333
Adoption of ASC 326	(822)		587		501		1,969		85		797		1,567		2,299		6,983
PCD allowance established in acquisition	69		127		239		240		68		492		5		7		1,247
Provision for credit losses	1,693		336		87		398		630		939		(100)		1,021		5,004
Charge-offs	(15)		(5)		(171)		—		—		(34)		—		(508)		(733)
Recoveries	45		16		253		52		280		135		4		244		1,029
Ending balance	$	4,249	$	2,254	$	7,630	$	6,882	$	2,535	$	4,088	$	2,272	$	8,953	$	38,863

	Nine Months Ended September 30, 2022
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Beginning balance	$	2,440	$	1,840	$	8,145	$	4,914	$	1,263	$	1,311	$	845	$	3,178	$	23,936
Provision for loan losses	(189)		(781)		(1,536)		(539)		60		93		(4)		2,843		(53)
Charge-offs	(22)		—		—		—		—		(67)		—		(426)		(515)
Recoveries	755		101		273		1		—		323		—		239		1,692
Ending balance	$	2,984	$	1,160	$	6,882	$	4,376	$	1,323	$	1,660	$	841	$	5,834	$	25,060

The following tables present loans and the related allowance for credit losses by category:


	September 30, 2023
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Loan balances:
Collectively evaluated for impairment	$	386,763	$	297,068	$	888,068	$	370,942	$	388,282	$	482,838	$	275,111	$	217,638	$	3,306,710
Individually evaluated for impairment	170		174		13,861		216		460		5,817		128		15,250		36,076
Total	$	386,933	$	297,242	$	901,929	$	371,158	$	388,742	$	488,655	$	275,239	$	232,888	$	3,342,786

Allowance for credit losses:
Collectively evaluated for impairment	$	4,244	$	2,254	$	6,503	$	6,882	$	2,535	$	3,737	$	2,272	$	5,844	$	34,271
Individually evaluated for impairment	5		—		1,127		—		—		351		—		3,109		4,592
Total	$	4,249	$	2,254	$	7,630	$	6,882	$	2,535	$	4,088	$	2,272	$	8,953	$	38,863

	December 31, 2022
(dollars in thousands)	Commercial and Industrial		Commercial Real Estate Owner Occupied		Commercial Real Estate Non-owner Occupied		Construction and Land Development		Multi-Family		One-to-four Family Residential		Agricultural and Farmland		Municipal, Consumer, and Other		Total

Loan balances:
Collectively evaluated for impairment	$	261,833	$	203,558	$	671,663	$	359,892	$	287,298	$	325,621	$	233,118	$	184,579	$	2,527,562
Individually evaluated for impairment	4,818		11,366		30,509		82		—		8,399		4,033		12,508		71,715
Acquired with deteriorated credit quality	106		3,579		11,030		850		567		4,233		595		16		20,976
Total	$	266,757	$	218,503	$	713,202	$	360,824	$	287,865	$	338,253	$	237,746	$	197,103	$	2,620,253

Allowance for loan losses:
Collectively evaluated for impairment	$	3,121	$	1,008	$	4,332	$	4,221	$	1,470	$	1,709	$	796	$	2,327	$	18,984
Individually evaluated for impairment	158		168		2,388		—		—		44		—		3,562		6,320
Acquired with deteriorated credit quality	—		17		1		2		2		6		—		1		29
Total	$	3,279	$	1,193	$	6,721	$	4,223	$	1,472	$	1,759	$	796	$	5,890	$	25,333

Schedule of gross charge-offs, further sorted by origination year

Gross charge-offs, further sorted by origination year, were as follows during the three and nine months ended September 30, 2023:


	Gross Charge-Offs for the Three Months Ended September 30, 2023
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2023		2022		2021		2020		2019		Prior

Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	—	$	15	$	—	$	15
Commercial real estate - owner occupied	—		2		—		—		—		—		—		—		2
Commercial real estate - non-owner occupied	—		—		—		—		—		—		171		—		171
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		—		—		—		8		—		—		8
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	141		9		—		—		—		—		66		—		216
Total	$	141	$	11	$	—	$	—	$	—	$	8	$	252	$	—	$	412


	Gross Charge-Offs for the Nine Months Ended September 30, 2023
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2023		2022		2021		2020		2019		Prior

Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	—	$	15	$	—	$	15
Commercial real estate - owner occupied	—		5		—		—		—		—		—		—		5
Commercial real estate - non-owner occupied	—		—		—		—		—		—		171		—		171
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		—		—		1		33		—		—		34
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	276		83		—		9		—		—		140		—		508
Total	$	276	$	88	$	—	$	9	$	1	$	33	$	326	$	—	$	733

Schedule of amortized cost of collateral dependent loans


	September 30, 2023
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total

Commercial and industrial	$	—	$	—	$	170	$	170	$	5
Commercial real estate - owner occupied	174		—		—		174		—
Commercial real estate - non-owner occupied	13,861		—		—		13,861		1,127
Construction and land development	216		—		—		216		—
Multi-family	460		—		—		460		—
One-to-four family residential	5,817		—		—		5,817		351
Agricultural and farmland	128		—		—		128		—
Municipal, consumer, and other	15,141		31		78		15,250		3,109
Total	$	35,797	$	31	$	248	$	36,076	$	4,592

Schedule of loans individually evaluated for impairment by category PREADOPTION

The following table presents loans individually evaluated for impairment by category of loans:


	December 31, 2022
(dollars in thousands)	Unpaid Principal Balance		Recorded Investment		Related Allowance

With an allowance recorded:
Commercial and industrial	$	268	$	254	$	158
Commercial real estate - owner occupied	635		610		168
Commercial real estate - non-owner occupied	14,269		14,261		2,388
Construction and land development	—		—		—
Multi-family	—		—		—
One-to-four family residential	569		524		44
Agricultural and farmland	—		—		—
Municipal, consumer, and other	8,152		8,131		3,562
Total	$	23,893	$	23,780	$	6,320

With no related allowance:
Commercial and industrial	$	4,564	$	4,564	$	—
Commercial real estate - owner occupied	10,912		10,756		—
Commercial real estate - non-owner occupied	16,327		16,248		—
Construction and land development	92		82		—
Multi-family	—		—		—
One-to-four family residential	9,181		7,875		—
Agricultural and farmland	4,440		4,033		—
Municipal, consumer, and other	4,410		4,377		—
Total	$	49,926	$	47,935	$	—

Total loans individually evaluated for impairment:
Commercial and industrial	$	4,832	$	4,818	$	158
Commercial real estate - owner occupied	11,547		11,366		168
Commercial real estate - non-owner occupied	30,596		30,509		2,388
Construction and land development	92		82		—
Multi-family	—		—		—
One-to-four family residential	9,750		8,399		44
Agricultural and farmland	4,440		4,033		—
Municipal, consumer, and other	12,562		12,508		3,562
Total	$	73,819	$	71,715	$	6,320

The following tables present the average recorded investment and interest income recognized for loans individually evaluated for impairment by category of loans:


	Three Months Ended September 30, 2022
(dollars in thousands)	Average Recorded Investment		Interest Income Recognized

With an allowance recorded:
Commercial and industrial	$	258	$	5
Commercial real estate - owner occupied	739		11
Commercial real estate - non-owner occupied	14,441		185
Construction and land development	—		—
Multi-family	—		—
One-to-four family residential	349		2
Agricultural and farmland	—		—
Municipal, consumer, and other	8,254		66
Total	$	24,041	$	269

With no related allowance:
Commercial and industrial	$	3,894	$	41
Commercial real estate - owner occupied	11,651		141
Commercial real estate - non-owner occupied	17,220		369
Construction and land development	2,010		57
Multi-family	—		—
One-to-four family residential	8,119		99
Agricultural and farmland	425		5
Municipal, consumer, and other	4,457		44
Total	$	47,776	$	756

Total loans individually evaluated for impairment:
Commercial and industrial	$	4,152	$	46
Commercial real estate - owner occupied	12,390		152
Commercial real estate - non-owner occupied	31,661		554
Construction and land development	2,010		57
Multi-family	—		—
One-to-four family residential	8,468		101
Agricultural and farmland	425		5
Municipal, consumer, and other	12,711		110
Total	$	71,817	$	1,025


	Nine Months Ended September 30, 2022
(dollars in thousands)	Average Recorded Investment		Interest Income Recognized

With an allowance recorded:
Commercial and industrial	$	272	$	13
Commercial real estate - owner occupied	1,297		55
Commercial real estate - non-owner occupied	14,631		556
Construction and land development	—		—
Multi-family	—		—
One-to-four family residential	513		11
Agricultural and farmland	—		—
Municipal, consumer, and other	8,368		151
Total	$	25,081	$	786

With no related allowance:
Commercial and industrial	$	12,793	$	397
Commercial real estate - owner occupied	11,524		388
Commercial real estate - non-owner occupied	16,894		907
Construction and land development	2,012		105
Multi-family	—		—
One-to-four family residential	8,341		240
Agricultural and farmland	305		8
Municipal, consumer, and other	4,493		98
Total	$	56,362	$	2,143

Total loans individually evaluated for impairment:
Commercial and industrial	$	13,065	$	410
Commercial real estate - owner occupied	12,821		443
Commercial real estate - non-owner occupied	31,525		1,463
Construction and land development	2,012		105
Multi-family	—		—
One-to-four family residential	8,854		251
Agricultural and farmland	305		8
Municipal, consumer, and other	12,861		249
Total	$	81,443	$	2,929

Schedule of changes in the accretable yield for loans acquired with deteriorated credit quality

Changes in the accretable yield for loans acquired with deteriorated credit quality were as follows:


(dollars in thousands)	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022

Beginning balance	$	537	$	413
Reclassification from non-accretable difference	283		500
Accretion income	(58)		(151)
Ending balance	$	762	$	762

Schedule of recorded investment on past due basis

The following tables present loans by category based on current payment and accrual status:


	September 30, 2023
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans

Commercial and industrial	$	386,383	$	380	$	—	$	170	$	386,933
Commercial real estate - owner occupied	297,069		—		—		173		297,242
Commercial real estate - non-owner occupied	900,058		1,605		—		266		901,929
Construction and land development	370,922		20		—		216		371,158
Multi-family	387,966		316		—		460		388,742
One-to-four family residential	481,603		1,897		—		5,155		488,655
Agricultural and farmland	275,096		15		—		128		275,239
Municipal, consumer, and other	232,561		217		—		110		232,888
Total	$	3,331,658	$	4,450	$	—	$	6,678	$	3,342,786


	December 31, 2022
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans

Commercial and industrial	$	266,521	$	17	$	—	$	219	$	266,757
Commercial real estate - owner occupied	218,242		187		—		74		218,503
Commercial real estate - non-owner occupied	713,031		—		—		171		713,202
Construction and land development	360,763		61		—		—		360,824
Multi-family	287,854		11		—		—		287,865
One-to-four family residential	335,576		894		145		1,638		338,253
Agricultural and farmland	237,727		19		—		—		237,746
Municipal, consumer, and other	196,892		157		1		53		197,103
Total	$	2,616,606	$	1,346	$	146	$	2,155	$	2,620,253

Schedule of non-accrual loans

The following table presents nonaccrual loans with and without a related allowance for credit losses:


	September 30, 2023
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual

Commercial and industrial	$	127	$	43	$	170
Commercial real estate - owner occupied	—		173		173
Commercial real estate - non-owner occupied	220		46		266
Construction and land development	—		216		216
Multi-family	—		460		460
One-to-four family residential	100		5,055		5,155
Agricultural and farmland	—		128		128
Municipal, consumer, and other	31		79		110
Total	$	478	$	6,200	$	6,678

Schedule of loans by category risk ratings

The following tables present loans by category based on their assigned risk ratings determined by management:


	September 30, 2023
(dollars in thousands)	Pass		Pass-Watch		Substandard		Doubtful		Total

Commercial and industrial	$	382,041	$	4,114	$	778	$	—	$	386,933
Commercial real estate - owner occupied	279,081		8,249		9,912		—		297,242
Commercial real estate - non-owner occupied	842,816		33,767		25,346		—		901,929
Construction and land development	366,198		4,667		293		—		371,158
Multi-family	363,214		24,753		775		—		388,742
One-to-four family residential	468,736		7,572		12,347		—		488,655
Agricultural and farmland	266,353		5,466		3,420		—		275,239
Municipal, consumer, and other	215,726		1,771		15,391		—		232,888
Total	$	3,184,165	$	90,359	$	68,262	$	—	$	3,342,786


	December 31, 2022
(dollars in thousands)	Pass		Pass-Watch		Substandard		Doubtful		Total

Commercial and industrial	$	255,309	$	6,630	$	4,818	$	—	$	266,757
Commercial real estate - owner occupied	198,546		10,105		9,852		—		218,503
Commercial real estate - non-owner occupied	652,691		27,282		33,229		—		713,202
Construction and land development	358,215		2,527		82		—		360,824
Multi-family	283,682		4,183		—		—		287,865
One-to-four family residential	323,632		5,907		8,714		—		338,253
Agricultural and farmland	223,114		10,004		4,628		—		237,746
Municipal, consumer, and other	184,299		296		12,508		—		197,103
Total	$	2,479,488	$	66,934	$	73,831	$	—	$	2,620,253

Schedule of risk ratings of loans, further sorted by origination year

Risk ratings of loans, further sorted by origination year, are as follows as of September 30, 2023:


(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2023		2022		2021		2020		2019		Prior
Commercial and industrial
Pass	$	94,311	$	59,814	$	26,229	$	29,297	$	5,927	$	8,496	$	150,403	$	7,564	$	382,041
Pass-Watch	229		1,400		257		198		788		450		284		508		4,114
Substandard	3		87		40		43		—		44		310		251		778
Total	$	94,543	$	61,301	$	26,526	$	29,538	$	6,715	$	8,990	$	150,997	$	8,323	$	386,933

Commercial real estate - owner occupied
Pass	$	25,378	$	64,227	$	58,426	$	55,269	$	33,692	$	34,949	$	6,487	$	653	$	279,081
Pass-Watch	556		963		3,102		351		1,624		1,653		—		—		8,249
Substandard	463		1,163		3,338		70		658		3,229		991		—		9,912
Total	$	26,397	$	66,353	$	64,866	$	55,690	$	35,974	$	39,831	$	7,478	$	653	$	297,242

Commercial real estate - non-owner occupied
Pass	$	96,710	$	254,299	$	247,868	$	90,232	$	96,034	$	43,858	$	10,042	$	3,773	$	842,816
Pass-Watch	696		—		7,684		358		7,277		3,823		13,680		249		33,767
Substandard	13,424		126		—		—		2,465		9,331		—		—		25,346
Total	$	110,830	$	254,425	$	255,552	$	90,590	$	105,776	$	57,012	$	23,722	$	4,022	$	901,929

Construction and land development
Pass	$	139,883	$	143,616	$	58,998	$	7,459	$	2,753	$	1,005	$	7,232	$	5,252	$	366,198
Pass-Watch	155		2,537		—		—		—		11		1,127		837		4,667
Substandard	—		216		—		—		—		77		—		—		293
Total	$	140,038	$	146,369	$	58,998	$	7,459	$	2,753	$	1,093	$	8,359	$	6,089	$	371,158

Multi-family
Pass	$	44,034	$	78,646	$	99,032	$	53,945	$	32,475	$	47,177	$	7,403	$	502	$	363,214
Pass-Watch	2,747		6,671		—		8,827		55		6,096		349		8		24,753
Substandard	—		—		316		—		—		459		—		—		775
Total	$	46,781	$	85,317	$	99,348	$	62,772	$	32,530	$	53,732	$	7,752	$	510	$	388,742

One-to-four family residential
Pass	$	91,683	$	87,716	$	87,384	$	65,721	$	23,325	$	50,394	$	57,222	$	5,291	$	468,736
Pass-Watch	2,503		412		958		332		608		2,219		219		321		7,572
Substandard	490		2,268		814		831		801		4,245		—		2,898		12,347
Total	$	94,676	$	90,396	$	89,156	$	66,884	$	24,734	$	56,858	$	57,441	$	8,510	$	488,655

Agricultural and farmland
Pass	$	31,739	$	36,428	$	39,008	$	37,683	$	10,797	$	11,247	$	97,954	$	1,497	$	266,353
Pass-Watch	926		2,030		95		1,006		137		731		541		—		5,466
Substandard	—		—		15		3,277		—		128		—		—		3,420
Total	$	32,665	$	38,458	$	39,118	$	41,966	$	10,934	$	12,106	$	98,495	$	1,497	$	275,239

Municipal, Consumer, and other
Pass	$	38,953	$	58,869	$	28,671	$	15,023	$	1,639	$	44,137	$	28,433	$	1	$	215,726
Pass-Watch	—		4		—		17		—		1,750		—		—		1,771
Substandard	63		85		5		2		43		15,176		17		—		15,391
Total	$	39,016	$	58,958	$	28,676	$	15,042	$	1,682	$	61,063	$	28,450	$	1	$	232,888

Total by Risk Rating
Pass	$	562,691	$	783,615	$	645,616	$	354,629	$	206,642	$	241,263	$	365,176	$	24,533	$	3,184,165
Pass-Watch	7,812		14,017		12,096		11,089		10,489		16,733		16,200		1,923		90,359
Substandard	14,443		3,945		4,528		4,223		3,967		32,689		1,318		3,149		68,262
Total	$	584,946	$	801,577	$	662,240	$	369,941	$	221,098	$	290,685	$	382,694	$	29,605	$	3,342,786

DEPOSITS (Tables)

9 Months Ended

Sep. 30, 2023

Deposits [Abstract]

Schedule of Company's interest-bearing deposits

The Company’s deposits are summarized below:


(dollars in thousands)	September 30, 2023		December 31, 2022

Noninterest-bearing deposits	$	1,086,877	$	994,954
Interest-bearing deposits:
Interest-bearing demand	1,134,721		1,139,150
Money market	673,780		555,425
Savings	623,083		634,527
Time	679,607		262,968
Total interest-bearing deposits	3,111,191		2,592,070
Total deposits	$	4,198,068	$	3,587,024

Schedule of interest expense on deposits

The components of interest expense on deposits are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Interest-bearing demand	$	761	$	144	$	1,902	$	430
Money market	2,041		203		4,492		434
Savings	249		53		616		155
Time	4,160		187		6,898		643
Total interest expense on deposits	$	7,211	$	587	$	13,908	$	1,662

- Definition

Tabular disclosure of type of deposit liability.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Publisher SEC

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (1)
-Publisher SEC

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (2)
-Publisher SEC

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (3)
-Publisher SEC

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (4)
-Publisher SEC

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (5)
-Publisher SEC

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (c)
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (d)
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
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-Number 229
-Section 1406
-Paragraph (e)
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Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iv)
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+ Details

LOAN SERVICING - Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Servicing Asset at Fair Value, Amount [Roll Forward]
Beginning balance			$ 10,147
Ending balance	$ 20,156		20,156
Mortgage Loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Mortgage loans serviced for others	1,690,000		1,690,000		$ 955,800
Servicing Asset at Fair Value, Amount [Roll Forward]
Beginning balance	20,133	$ 10,089	10,147	$ 7,994
Acquired	0	0	10,469	0
Capitalized servicing rights	227	144	526	451
Attributable to payments and principal reductions	(631)	(362)	(1,621)	(1,048)
Attributable to changes in valuation inputs and assumptions	427	569	635	3,043
Total fair value adjustment	(204)	207	(986)	1,995
Ending balance	$ 20,156	$ 10,440	$ 20,156	$ 10,440

STOCK-BASED COMPENSATION PLANS - Summary of equity award activity (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Stock-based compensation plans
Expirations (in shares)	0	0	0	0
Weighted Average Grant Date Assigned Value
Expired (in dollars per share)	$ 0	$ 0	$ 0	$ 0
Restricted stock units
Stock-based compensation plans
Outstanding (in shares)	129,422	120,631	139,986	109,244
Granted (in shares)	0	0	41,847	46,312
Exercised (in shares)	0	0	(51,693)	(34,925)
Forfeited (in shares)	(520)	(1,328)	(1,238)	(1,328)
Outstanding (in shares)	128,902	119,303	128,902	119,303
Weighted Average Grant Date Assigned Value
Outstanding (in dollars per share)	$ 19.58	$ 17.98	$ 18.01	$ 17.27
Granted (in dollars per share)	0	0	22.72	19.11
Exercised (in dollars per share)	0	0	17.91	17.26
Forfeited (in dollars per share)	21.23	18.35	18.53	18.35
Outstanding (in dollars per share)	$ 19.57	$ 17.98	$ 19.57	$ 17.98
Performance restricted stock units
Stock-based compensation plans
Outstanding (in shares)	79,097	62,067	62,067	38,344
Granted (in shares)	0	0	17,030	23,723
Vested (in shares)	0	0	0	0
Forfeited (in shares)	0	0	0	0
Outstanding (in shares)	79,097	62,067	79,097	62,067
Weighted Average Grant Date Assigned Value
Outstanding (in dollars per share)	$ 18.25	$ 17.02	$ 17.02	$ 15.72
Granted (in dollars per share)	0	0	22.72	19.14
Vested (in dollars per share)	0	0	0	0
Forfeited (in dollars per share)	0	0	0	0
Outstanding (in dollars per share)	$ 18.25	$ 17.02	$ 18.25	$ 17.02
Stock appreciation rights
Stock-based compensation plans
Outstanding (in shares)	73,440	91,800	73,440	97,920
Granted (in shares)	0	0	0	0
Exercised (in shares)	0	0	0	(6,120)
Forfeited (in shares)	0	0	0	0
Outstanding (in shares)	73,440	91,800	73,440	91,800
Exercisable (in shares)	73,440		73,440
Weighted Average Grant Date Assigned Value
Outstanding (in dollars per share)	$ 16.32	$ 16.32	$ 16.32	$ 16.32
Granted (in dollars per share)	0	0	0	0
Exercised (in dollars per share)	0	0	0	16.32
Forfeited (in dollars per share)	0	0	0	0
Outstanding (in dollars per share)	$ 16.32	$ 16.32	$ 16.32	$ 16.32
Weighted average remaining contractual term			5 years 10 months 24 days

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Stockholders' Equity [Abstract]
Cash dividends (in dollars per share)	$ 0.17	$ 0.16	$ 0.51	$ 0.48

STOCK-BASED COMPENSATION PLANS - Summary of assumptions used (Details) - Stock appreciation rights	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
STOCK-BASED COMPENSATION PLANS
Risk-free interest rate	4.60%	3.95%
Expected volatility	37.29%	36.54%
Expected life (in years)	5 years 10 months 24 days	6 years 8 months 12 days
Expected dividend yield	3.73%	3.27%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

+ Details

DERIVATIVE FINANCIAL INSTRUMENTS - Derivative instrument assets and liabilities (Details) - Designated as Hedging Instrument - Interest Rate Swap - Cash Flow Hedging - Other Assets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount	$ 17,000	$ 17,000
Fair value recorded in other assets	$ 514	$ 629

- Definition

Nominal or face amount used to calculate payments on the derivative asset.

+ References + Details

JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS

9 Months Ended

Sep. 30, 2023

Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]

JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS

Eight subsidiary business trusts of the Company have issued floating rate capital securities (“capital securities”) which are guaranteed by the Company. Three of these (Town and Country Statutory Trust II, Town and Country Statutory Trust III, and West Plains Investors Statutory Trust I) were acquired by the Company as part of its acquisition of Town and Country.

The Company owns all of the outstanding stock of the subsidiary business trusts. The trusts used the proceeds from the issuance of their capital securities to buy floating rate junior subordinated deferrable interest debentures (“junior subordinated debentures”) issued by the Company. These junior subordinated debentures are the only assets of the trusts and the interest payments from the junior subordinated debentures finance the distributions paid on the capital securities. The junior subordinated debentures are unsecured, rank junior and subordinate in the right of payment to all senior debt of the Company, and have an optional redemption in whole or in part on any interest payment date.

In accordance with GAAP, the trusts are not consolidated in the Company’s financial statements.

The face values and carrying values of the junior subordinated debentures are summarized as follows:


			Carrying Value
(dollars in thousands)	Face Value		September 30, 2023		December 31, 2022

Heartland Bancorp, Inc. Capital Trust B	$	10,310	$	10,310	$	10,310
Heartland Bancorp, Inc. Capital Trust C	10,310		10,310		10,310
Heartland Bancorp, Inc. Capital Trust D	5,155		5,155		5,155
FFBI Capital Trust I	7,217		7,217		7,217
National Bancorp Statutory Trust I	5,773		4,837		4,788
Town and Country Statutory Trust II	4,124		4,407		—
Town and Country Statutory Trust III	7,732		7,575		—
West Plains Investors Statutory Trust I	3,093		2,963		—
Total	$	53,714	$	52,774	$	37,780

The interest rates on the junior subordinated debentures are variable, reset quarterly, and are equal to the three-month LIBOR, as determined on the LIBOR Determination Date immediately preceding the Distribution Payment Date specific to each junior subordinated debenture, plus a fixed percentage. Beginning in July 2023, the three-month LIBOR index was replaced by the three-month term SOFR index plus a spread adjustment.

The interest rates and maturities of the junior subordinated debentures are summarized as follows:


			Interest Rate at
	Variable Interest Rate		September 30, 2023		December 31, 2022		Maturity Date
Heartland Bancorp, Inc. Capital Trust B	SOFR plus	3.01%	8.32	%	6.83	%	April 6, 2034
Heartland Bancorp, Inc. Capital Trust C	SOFR plus	1.79	7.20		6.30		June 15, 2037
Heartland Bancorp, Inc. Capital Trust D	SOFR plus	1.61	7.02		6.12		September 15, 2037
FFBI Capital Trust I	SOFR plus	3.06	8.37		6.88		April 6, 2034
National Bancorp Statutory Trust I	SOFR plus	3.16	8.57		7.67		December 15, 2037
Town and Country Statutory Trust II	SOFR plus	3.05	8.46		N/A		March 17, 2034
Town and Country Statutory Trust III	SOFR plus	1.94	7.35		N/A		March 22, 2037
West Plains Investors Statutory Trust I	SOFR plus	1.71	7.12		N/A		June 15, 2037

The distribution rate payable on the debentures is cumulative and payable quarterly in arrears. The Company has the right, subject to events of default, to defer payments of interest on the junior subordinated debentures at any time by extending the interest payment period for a period not exceeding 20 quarterly periods with respect to each deferral period, provided that no extension period may extend beyond the redemption or maturity date of the junior subordinated debentures. The capital securities are subject to mandatory redemption upon payment of the junior subordinated debentures and carry an interest rate identical to that of the related debenture. The junior subordinated debentures maturity dates may be shortened if certain conditions are met, or at any time within 90 days following the occurrence and continuation of certain changes in either tax treatment or the capital treatment of the junior subordinated debentures or the capital securities. If the junior subordinated debentures are redeemed before they mature, the redemption price will be the principal amount plus any accrued but unpaid interest. The Company has the right to terminate each Capital Trust and cause the junior subordinated debentures to be distributed to the holders of the capital securities in liquidation of such trusts.

Under current banking regulations, bank holding companies are allowed to include qualifying trust preferred securities in their Tier 1 Capital for regulatory capital purposes, subject to a 25% limitation to all core (Tier 1) capital elements, net of goodwill and other intangible assets less any associated deferred tax liability. As of September 30, 2023 and 2022, 100% of the trust preferred securities qualified as Tier 1 capital under the final rule adopted in March 2005.

LOAN SERVICING (Tables)

9 Months Ended

Sep. 30, 2023

Transfers and Servicing [Abstract]

Schedule of activity in mortgage servicing rights

Activity in mortgage servicing rights is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Beginning balance	$	20,133	$	10,089	$	10,147	$	7,994
Acquired	—		—		10,469		—
Capitalized servicing rights	227		144		526		451
Fair value adjustment:
Attributable to payments and principal reductions	(631)		(362)		(1,621)		(1,048)
Attributable to changes in valuation inputs and assumptions	427		569		635		3,043
Total fair value adjustment	(204)		207		(986)		1,995
Ending balance	$	20,156	$	10,440	$	20,156	$	10,440

FORECLOSED ASSETS - Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Real Estate Acquired Through Foreclosure [Roll Forward]
Beginning balance	$ 3,080	$ 2,891	$ 3,030	$ 3,278
Acquired	0	0	271	0
Transfers from loans	879	0	1,049	27
Proceeds from sales	(2,990)	(29)	(3,274)	(476)
Net gain (loss) on sales	564	20	632	118
Direct write-downs	(14)	(245)	(189)	(310)
Ending balance	$ 1,519	$ 2,637	$ 1,519	$ 2,637

JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS (Tables)

9 Months Ended

Sep. 30, 2023

Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust [Abstract]

Schedule of carrying value of subordinated debentures

The face values and carrying values of the junior subordinated debentures are summarized as follows:


			Carrying Value
(dollars in thousands)	Face Value		September 30, 2023		December 31, 2022

Heartland Bancorp, Inc. Capital Trust B	$	10,310	$	10,310	$	10,310
Heartland Bancorp, Inc. Capital Trust C	10,310		10,310		10,310
Heartland Bancorp, Inc. Capital Trust D	5,155		5,155		5,155
FFBI Capital Trust I	7,217		7,217		7,217
National Bancorp Statutory Trust I	5,773		4,837		4,788
Town and Country Statutory Trust II	4,124		4,407		—
Town and Country Statutory Trust III	7,732		7,575		—
West Plains Investors Statutory Trust I	3,093		2,963		—
Total	$	53,714	$	52,774	$	37,780

Schedule of interest rates and maturities of the junior subordinated debentures

The interest rates and maturities of the junior subordinated debentures are summarized as follows:


			Interest Rate at
	Variable Interest Rate		September 30, 2023		December 31, 2022		Maturity Date
Heartland Bancorp, Inc. Capital Trust B	SOFR plus	3.01%	8.32	%	6.83	%	April 6, 2034
Heartland Bancorp, Inc. Capital Trust C	SOFR plus	1.79	7.20		6.30		June 15, 2037
Heartland Bancorp, Inc. Capital Trust D	SOFR plus	1.61	7.02		6.12		September 15, 2037
FFBI Capital Trust I	SOFR plus	3.06	8.37		6.88		April 6, 2034
National Bancorp Statutory Trust I	SOFR plus	3.16	8.57		7.67		December 15, 2037
Town and Country Statutory Trust II	SOFR plus	3.05	8.46		N/A		March 17, 2034
Town and Country Statutory Trust III	SOFR plus	1.94	7.35		N/A		March 22, 2037
West Plains Investors Statutory Trust I	SOFR plus	1.71	7.12		N/A		June 15, 2037

DOCUMENT AND ENTITY INFORMATION - shares	9 Months Ended
DOCUMENT AND ENTITY INFORMATION - shares	Sep. 30, 2023	Oct. 24, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-39085
Entity Registrant Name	HBT Financial, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	37-1117216
Entity Address, Address Line One	401 North Hershey Rd
Entity Address, City or Town	Bloomington
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	61704
City Area Code	888
Local Phone Number	897-2276
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	HBT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		31,710,005
Entity Central Index Key	0000775215
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

REGULATORY MATTERS - (Details) $ in Thousands	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Total Capital (to Risk Weighted Assets)
For capital adequacy purposes, ratio (as a percent).	0.025	0.025
Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)
Actual, amount	$ 577,525	$ 489,316
Actual, ratio (as a percent)	0.1478	0.1543
For capital adequacy purposes, amount	$ 312,537	$ 253,643
For capital adequacy purposes, ratio (as a percent).	0.0800	0.0800
To be well capitalized under prompt corrective action provisions, amount	$ 390,671	$ 317,054
To be well capitalized under prompt corrective action provisions, ratio (as a percent)	0.1000	0.1000
Total Capital (to Risk Weighted Assets)
Actual, amount	$ 542,448	$ 463,983
Actual, ratio (as a percent)	0.1389	0.1463
For capital adequacy purposes, amount	$ 234,403	$ 190,233
To be well capitalized under prompt corrective action provisions, amount	$ 312,537	$ 253,643
For capital adequacy purposes, ratio (as a percent)	0.0600	0.0600
To be well capitalized under prompt corrective action provisions, ratio (as a percent)	0.0800	0.0800
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Actual, amount	$ 542,448	$ 463,983
Actual, ratio (as a percent)	13.89%	14.63%
For capital adequacy purposes, amount	$ 175,802	$ 142,674
For capital adequacy purposes, ratio (as a percent)	4.50%	4.50%
To be well capitalized under prompt corrective action provisions, amount	$ 253,936	$ 206,085
To be well capitalized under prompt corrective action provisions, ratio (as a percent)	6.50%	6.50%
Tier 1 Capital (to Average Assets)
Actual, amount	$ 542,448	$ 463,983
Actual, ratio (as a percent)	0.1089	0.1078
For capital adequacy purposes, amount	$ 199,216	$ 172,240
For capital adequacy purposes, ratio (as a percent)	0.0400	0.0400
To be well capitalized under prompt corrective action provisions, amount	$ 249,020	$ 215,300
To be well capitalized under prompt corrective action provisions, ratio (as a percent)	0.0500	0.0500
Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets)
Actual, amount	$ 590,174	$ 516,556
Actual, ratio (as a percent)	0.1509	0.1627
For capital adequacy purposes, amount	$ 312,868	$ 254,052
For capital adequacy purposes, ratio (as a percent).	0.0800	0.0800
Total Capital (to Risk Weighted Assets)
Actual, amount	$ 515,643	$ 451,828
Actual, ratio (as a percent)	0.1318	0.1423
For capital adequacy purposes, amount	$ 234,651	$ 190,539
For capital adequacy purposes, ratio (as a percent)	0.0600	0.0600
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Actual, amount	$ 464,483	$ 415,213
Actual, ratio (as a percent)	11.88%	13.07%
For capital adequacy purposes, amount	$ 175,988	$ 142,904
For capital adequacy purposes, ratio (as a percent)	4.50%	4.50%
Tier 1 Capital (to Average Assets)
Actual, amount	$ 515,643	$ 451,828
Actual, ratio (as a percent)	0.1034	0.1048
For capital adequacy purposes, amount	$ 199,420	$ 172,427
For capital adequacy purposes, ratio (as a percent)	0.0400	0.0400

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Financial Instruments

The Bank is party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.

The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

Such commitments and conditional obligations were as follows:


	Contractual Amount
(dollars in thousands)	September 30, 2023		December 31, 2022

Commitments to extend credit	$	881,943	$	756,885
Standby letters of credit	23,689		17,785

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, by the Bank upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies, but may include real estate, accounts receivable, inventory, property, plant, and equipment, and income-producing properties.

Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those standby letters of credit are primarily issued to support extensions of credit. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. The Bank secures the standby letters of credit with the same collateral used to secure the related loan.

Allowance for Credit Losses on Unfunded Commitments

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on unfunded commitments is included in other liabilities on the consolidated balance sheets and is adjusted through a charge to provision for credit loss expense on the consolidated statements of income. The allowance for credit losses on unfunded commitments estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The allowance for credit losses on unfunded commitments was $4.4 million as of September 30, 2023.

Legal Contingencies

In the normal course of business, the Company, or its subsidiaries, are involved in various legal proceedings. In the opinion of management, any liability resulting from pending proceedings would not be expected to have a material adverse effect on the Company's consolidated financial statements.

PLB Investments LLC, John Kuehner, and A.S. Palmer Investments LLC v. Heartland Bank and Trust Company and PNC Bank N.A., In the United States District Court for the Northern District of Illinois, Case No. 1:20-cv-1023 (“Class Action”); and Melanie E. Damian, As Receiver of Today’s Growth Consultant, Inc. (dba The Income Store) v. Heartland Bank and Trust Company and PNC Bank N.A., In the United States District Court for the Northern District of Illinois, Case No. 1:20-cv-7819 (“Receiver’s Action”)

The Bank was a defendant in the purported Class Action lawsuit that was filed on February 12, 2020, in the U.S. District Court for the Northern District of Illinois. The plaintiffs in the Class Action alleged that the Bank negligently enabled and facilitated a fraudulent, Ponzi-like scheme perpetrated by Today’s Growth Consultant, Inc. (dba The Income Store) (“TGC”). Additionally, the Receiver for TGC filed the Receiver’s Action on December 30, 2020, in the U.S. District Court for the Northern District of Illinois, with similar allegations.

On February 20, 2023, the Bank reached an agreement in principle to settle both the Class Action and Receiver’s Action in which the Bank would make one-time cash payments totaling $13.0 million, without admitting fault, to release the Bank from further liability and claims in both the Class Action and Receiver’s Action.

On August 16, 2023, definitive settlement agreements reflecting the terms of the agreement in principle were approved by the Court, and the Bank made the one-time cash payments totaling $13.0 million during the third quarter of 2023. The settlements do not include any admission of liability or wrongdoing by the Bank, and the Bank expressly denies any liability or wrongdoing with respect to any matter alleged in the Class Action and Receiver’s Action. The Bank agreed in principle to the settlements to avoid the cost, risks and distraction of continued litigation. The Company believes the settlements are in the best interests of the Company and its shareholders.

Accordingly, the Bank had $13.0 million accrued related to these matters as of December 31, 2022. The Bank’s insurer reimbursed $7.4 million of the settlement payment which was recorded as an insurance recovery receivable as of December 31, 2022. The net settlement amount of $5.6 million was included in other noninterest expense in the consolidated statements of income during the fourth quarter of 2022.

DeBaere, et al v. Heartland Bank and Trust Company

The Bank is a defendant in a purported class action lawsuit filed in June 2020, in the Circuit Court of Cook County, Illinois. The plaintiff, a customer of the Bank, alleges that the Bank breached its contract with the plaintiff by (1) charging multiple insufficient funds fees or overdraft fees on a single customer-initiated transaction, and (2) charging overdraft fees for transactions that were authorized on a positive account balance, but when settled, settled into a negative balance.

Miller, et al v. State Bank of Lincoln and Heartland Bank and Trust Company

The Bank is a defendant in a purported class action lawsuit filed in May 2020, in the Circuit Court of Logan County, Illinois. The plaintiff, a customer of State Bank of Lincoln, which previously merged with the Bank, alleges that the Bank breached its contract with the plaintiff by charging multiple insufficient funds fees or overdraft fees on a single customer-initiated transaction.

On May 15, 2023, the Bank reached an agreement in principle to settle both the DeBaere, et al and Miller, et al cases in which the Bank would make one-time cash payments totaling $3.4 million, without admitting fault, to release the Bank from further liability and claims in both the cases. If the proposed settlement agreements are approved by the Court and are not subject to appeal, the Bank will make one-time cash payments totaling $3.4 million.

The DeBaere, et al settlement agreement was preliminarily approved by the Court on September 28, 2023, and the Miller, et al settlement agreement is pending preliminary approval by the Court. The proposed settlements do not include any admission of liability or wrongdoing by the Bank, and the Bank expressly denies any liability or wrongdoing with respect to any matter alleged in the DeBaere, et al and Miller, et al cases. The Bank has agreed in principle to the settlements to avoid the cost, risks and distraction of continued litigation. The Company believes the proposed settlements are in the best interests of the Company and its shareholders.

Accordingly, the Bank had in the aggregate $3.4 million accrued as of September 30, 2023 and $2.6 million accrued as of December 31, 2022 related to these matters. An initial $2.6 million accrual was recognized in other noninterest expense during the fourth quarter of 2022, reflecting management’s best estimate at that time, and an additional $0.8 million accrual was recognized in other noninterest expense during the third quarter of 2023 following the agreement in principle to settle both the DeBaere, et al and Miller, et al cases.

John Pickett v. Town and Country Bank

The Bank is a defendant in a purported class action lawsuit filed in October 2023, in the Circuit Court of Sangamon County, Illinois. The plaintiff, a customer of Town and Country Bank, which previously merged with the Bank, alleges that the Bank breached its contract with the plaintiff by charging overdraft fees for transactions that were authorized on a positive account balance, but when settled, settled into a negative balance.

The Bank intends to vigorously defend the lawsuit. The Company is unable to predict when the matter will be resolved, the ultimate outcome, or potential costs or damages to be incurred.

STOCK-BASED COMPENSATION PLANS (Tables)

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Summary of stock-based compensation expense

The following is a summary of stock-based compensation expense (benefit):


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Restricted stock units	$	313	$	230	$	907	$	1,072
Performance restricted stock units	295		119		652		530
Total awards classified as equity	608		349		1,559		1,602
Stock appreciation rights	3		51		(43)		35
Total stock-based compensation expense	$	611	$	400	$	1,516	$	1,637

Schedule of the summary of outstanding restricted stock units

The following is a summary of restricted stock unit activity:


	Three Months Ended September 30,
	2023			2022
	Restricted Stock Units	Weighted Average Grant Date Fair Value		Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	129,422	$	19.58	120,631	$	17.98
Granted	—	—		—	—
Vested	—	—		—	—
Forfeited	(520)	21.23		(1,328)	18.35
Ending balance	128,902	$	19.57	119,303	$	17.98


	Nine Months Ended September 30,
	2023			2022
	Restricted Stock Units	Weighted Average Grant Date Fair Value		Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	139,986	$	18.01	109,244	$	17.27
Granted	41,847	22.72		46,312	19.11
Vested	(51,693)	17.91		(34,925)	17.26
Forfeited	(1,238)	18.53		(1,328)	18.35
Ending balance	128,902	$	19.57	119,303	$	17.98

The following is a summary of performance restricted stock unit activity:


	Three Months Ended September 30,
	2023			2022
	Performance Restricted Stock Units	Weighted Average Grant Date Fair Value		Performance Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	79,097	$	18.25	62,067	$	17.02
Granted	—	—		—	—
Vested	—	—		—	—
Forfeited	—	—		—	—
Ending balance	79,097	$	18.25	62,067	$	17.02


	Nine Months Ended September 30,
	2023			2022
	Performance Restricted Stock Units	Weighted Average Grant Date Fair Value		Performance Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	62,067	$	17.02	38,344	$	15.72
Granted	17,030	22.72		23,723	19.14
Vested	—	—		—	—
Forfeited	—	—		—	—
Ending balance	79,097	$	18.25	62,067	$	17.02

Schedule of the status of stock appreciation rights and changes

The following is a summary of stock appreciation rights activity:


	Three Months Ended September 30,
	2023			2022
	Stock Appreciation Rights Outstanding	Weighted Average Grant Date Assigned Value		Stock Appreciation Rights Outstanding	Weighted Average Grant Date Assigned Value
Beginning balance	73,440	$	16.32	91,800	$	16.32
Granted	—	—		—	—
Exercised	—	—		—	—
Expired	—	—		—	—
Forfeited	—	—		—	—
Ending balance	73,440	$	16.32	91,800	$	16.32


	Nine Months Ended September 30,
	2023			2022
	Stock Appreciation Rights	Weighted Average Grant Date Assigned Value		Stock Appreciation Rights	Weighted Average Grant Date Assigned Value
Beginning balance	73,440	$	16.32	97,920	$	16.32
Granted	—	—		—	—
Exercised	—	—		(6,120)	16.32
Expired	—	—		—	—
Forfeited	—	—		—	—
Ending balance	73,440	$	16.32	91,800	$	16.32

A further summary of stock appreciation rights as of September 30, 2023, is as follows:

Stock Appreciation Rights

Weighted Average
Remaining
Contractual Term

Grant Date Assigned Values

Outstanding

Exercisable

$16.32

73,440

5.9 years

Schedule of assumptions used in valuing stock appreciation rights

The Company uses an option pricing model to value the stock appreciation rights, using the assumptions in the following table. Expected volatility is derived from the historical volatility of the Company’s stock price and a selected peer group of industry-related companies.


	September 30, 2023		December 31, 2022
Risk-free interest rate	4.60	%	3.95	%
Expected volatility	37.29	%	36.54	%
Expected life (in years)	5.9		6.7
Expected dividend yield	3.73	%	3.27	%

JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS - Narrative (Details)	9 Months Ended
	Sep. 30, 2023 trust period	Sep. 30, 2022
Debt Instrument [Line Items]
Number of subsidiary business trusts	8
Maximum deferred interest period quarters \| period	20
Period shorten the maturity date from the event	90 days
Trust preferred securities qualified as Tier 1 capital	100.00%	100.00%
Town and Country
Debt Instrument [Line Items]
Number of subsidiary business trusts acquired	3

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482900/835-30-50-1

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(f))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-3

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

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+ Details

DERIVATIVE FINANCIAL INSTRUMENTS- Summary of the effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
DERIVATIVE FINANCIAL INSTRUMENTS
Net gains (losses)	$ 0	$ 0	$ 0	$ 0
Interest Rate Swap \| Not Designated as Hedging Instrument
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration]	Noninterest Income, Other Operating Income	Noninterest Income, Other Operating Income	Noninterest Income, Other Operating Income	Noninterest Income, Other Operating Income
Derivative, Loss, Statement of Income or Comprehensive Income [Extensible Enumeration]	Noninterest Income, Other Operating Income	Noninterest Income, Other Operating Income	Noninterest Income, Other Operating Income	Noninterest Income, Other Operating Income
Gross gains	$ 2,510	$ 5,209	$ 6,950	$ 15,303
Gross losses	$ (2,510)	$ (5,209)	$ (6,950)	$ (15,303)

DERIVATIVE FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

Derivative financial instruments are negotiated contracts entered into by two issuing counterparties containing specific agreement terms, including the underlying instrument, amount, exercise price, and maturities. The derivatives accounting guidance requires that the Company recognize all derivative financial instruments as either assets or liabilities at fair value in the consolidated balance sheets. The Company may utilize interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position.

Interest Rate Swaps Designated as Cash Flow Hedges

The Company designated certain interest rate swap agreements as cash flow hedges on variable-rate borrowings. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on interest rate swaps designated as cash flow hedging instruments, net of tax, is reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings.

The interest rate swap agreements designated as cash flow hedges are summarized as follows:


	September 30, 2023				December 31, 2022
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value

Fair value recorded in other assets	$	17,000	$	514	$	17,000	$	629

As of September 30, 2023, the interest rate swap agreements designated as cash flow hedges had contractual maturities between 2024 and 2025. As of September 30, 2023 and December 31, 2022, counterparties had cash pledged and held on deposit by the Company of $0.6 million and $0.6 million, respectively.

The effect of interest rate swap agreements designated as cash flow hedges on the consolidated statements of income are summarized as follows:


Location of gross gain (loss) reclassified from accumulated other comprehensive income (loss) to income	Amounts of gross gain (loss) reclassified from accumulated other comprehensive income (loss)
	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Designated as cash flow hedges:
Junior subordinated debentures interest expense	$	131	$	(14)	$	334	$	(177)

Interest Rate Swaps Not Designated as Hedging Instruments

The Company may offer interest rate swap agreements to its commercial borrowers in connection with their risk management needs. The Company manages the interest rate risk associated with these contracts by entering into an equal and offsetting derivative with a third-party financial institution. While these interest rate swap agreements generally work together as an economic interest rate hedge, the Company did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred.

The interest rate swap agreements not designated as hedging instruments are summarized as follows:


	September 30, 2023				December 31, 2022
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value

Fair value recorded in other assets:
Interest rate swaps with a commercial borrower counterparty	$	—	$	—	$	—	$	—
Interest rate swaps with a financial institution counterparty	101,612		9,674		106,995		6,981
Total fair value recorded in other assets	$	101,612	$	9,674	$	106,995	$	6,981

Fair value recorded in other liabilities:
Interest rate swaps with a commercial borrower counterparty	$	101,612	$	(9,674)	$	106,995	$	(6,981)
Interest rate swaps with a financial institution counterparty	—		—		—		—
Total fair value recorded in other liabilities	$	101,612	$	(9,674)	$	106,995	$	(6,981)

As of September 30, 2023, the interest rate swap agreements not designated as hedging instruments had contractual maturities between 2023 and 2035.

The effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income on the consolidated statements of income are summarized as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Not designated as hedging instruments:
Gross gains	$	2,510	$	5,209	$	6,950	$	15,303
Gross losses	(2,510)		(5,209)		(6,950)		(15,303)
Net gains (losses)	$	—	$	—	$	—	$	—

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Amortized cost of collateralized loans (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	$ 3,342,786		$ 2,620,253
Acquired with deteriorated credit quality	17,000
Allowance for Credit Losses	38,863	$ 37,814	25,333	$ 25,060	$ 24,734	$ 23,936
Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	35,797
Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	31
Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	248
Collateral-dependent loans
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	36,076
Allowance for Credit Losses	4,592
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	386,933		266,757
Allowance for Credit Losses	4,249	3,735	3,279	2,984	2,981	2,440
Commercial and industrial \| Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0
Commercial and industrial \| Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0
Commercial and industrial \| Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	170
Commercial and industrial \| Collateral-dependent loans
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	170
Allowance for Credit Losses	5
Commercial real estate - owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	297,242		218,503
Allowance for Credit Losses	2,254	2,362	1,193	1,160	1,224	1,840
Commercial real estate - owner occupied \| Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	174
Commercial real estate - owner occupied \| Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0
Commercial real estate - owner occupied \| Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0
Commercial real estate - owner occupied \| Collateral-dependent loans
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	174
Allowance for Credit Losses	0
Commercial real estate - non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	901,929		713,202
Allowance for Credit Losses	7,630	7,538	6,721	6,882	6,611	8,145
Commercial real estate - non-owner occupied \| Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	13,861
Commercial real estate - non-owner occupied \| Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0
Commercial real estate - non-owner occupied \| Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0
Commercial real estate - non-owner occupied \| Collateral-dependent loans
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	13,861
Allowance for Credit Losses	1,127
Construction and land development
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	371,158		360,824
Allowance for Credit Losses	6,882	5,834	4,223	4,376	4,059	4,914
Construction and land development \| Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	216
Construction and land development \| Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0
Construction and land development \| Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0
Construction and land development \| Collateral-dependent loans
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	216
Allowance for Credit Losses	0
Multi-family
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	388,742		287,865
Allowance for Credit Losses	2,535	2,603	1,472	1,323	1,375	1,263
Multi-family \| Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	460
Multi-family \| Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0
Multi-family \| Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0
Multi-family \| Collateral-dependent loans
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	460
Allowance for Credit Losses	0
One-to-four family residential
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	488,655		338,253
Allowance for Credit Losses	4,088	4,077	1,759	1,660	1,696	1,311
One-to-four family residential \| Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	5,817
One-to-four family residential \| Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0
One-to-four family residential \| Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0
One-to-four family residential \| Collateral-dependent loans
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	5,817
Allowance for Credit Losses	351
Agricultural and farmland
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	275,239		237,746
Allowance for Credit Losses	2,272	2,607	796	841	924	845
Agricultural and farmland \| Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	128
Agricultural and farmland \| Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0
Agricultural and farmland \| Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	0
Agricultural and farmland \| Collateral-dependent loans
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	128
Allowance for Credit Losses	0
Municipal, consumer, and other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	232,888		197,103
Allowance for Credit Losses	8,953	$ 9,058	$ 5,890	$ 5,834	$ 5,864	$ 3,178
Municipal, consumer, and other \| Real Estate
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	15,141
Municipal, consumer, and other \| Vehicles
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	31
Municipal, consumer, and other \| Other
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	78
Municipal, consumer, and other \| Collateral-dependent loans
Financing Receivable, Credit Quality Indicator [Line Items]
Amortized Cost	15,250
Allowance for Credit Losses	$ 3,109

FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying amount and estimated fair value (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financial assets:
Debt securities held-to-maturity	$ 450,313	$ 478,801
Level 1 \| Carrying Amount
Financial assets:
Cash and cash equivalents	111,913	114,159
Level 1 \| Estimated Fair Value
Financial assets:
Cash and cash equivalents	111,913	114,159
Level 2 \| Carrying Amount
Financial assets:
Debt securities held-to-maturity	527,144	541,600
Accrued interest receivable	23,447	19,506
Financial liabilities:
Securities sold under agreements to repurchase	28,900	43,081
Accrued interest payable	3,707	1,363
Level 2 \| Estimated Fair Value
Financial assets:
Debt securities held-to-maturity	450,313	478,801
Accrued interest receivable	23,447	19,506
Financial liabilities:
Securities sold under agreements to repurchase	28,900	43,081
Accrued interest payable	3,707	1,363
Level 3 \| Carrying Amount
Financial assets:
Restricted stock	11,165	7,965
Loans, net	3,303,923	2,594,920
Investments in unconsolidated subsidiaries	1,614	1,165
Financial liabilities:
Time deposits	679,607	262,968
Level 3 \| Estimated Fair Value
Financial assets:
Restricted stock	11,165	7,965
Loans, net	3,252,850	2,566,930
Investments in unconsolidated subsidiaries	1,614	1,165
Financial liabilities:
Time deposits	668,960	253,619
Subordinated notes \| Level 3 \| Carrying Amount
Financial liabilities:
Subordinated notes	39,454	39,395
Subordinated notes \| Level 3 \| Estimated Fair Value
Financial liabilities:
Subordinated notes	36,852	37,205
Junior subordinated debentures \| Level 3 \| Carrying Amount
Financial liabilities:
Subordinated notes	52,774	37,780
Junior subordinated debentures \| Level 3 \| Estimated Fair Value
Financial liabilities:
Subordinated notes	$ 43,600	$ 37,030

FORECLOSED ASSETS - Gains (losses) on Foreclosed Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract]
Direct write-downs	$ (14)	$ (245)	$ (189)	$ (310)
Net gain (loss) on sales	564	20	632	118
Gains (losses) on foreclosed assets	$ 550	$ (225)	$ 443	$ (192)

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

EARNINGS PER SHARE

The Company has granted certain restricted stock units that contain non-forfeitable rights to dividend equivalents. Such restricted stock units are considered participating securities. As such, we have included these restricted stock units in the calculation of basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

Diluted earnings per share is computed using the treasury stock method and reflects the potential dilution from the Company’s outstanding restricted stock units and performance restricted stock units.

The following table sets forth the computation of basic and diluted earnings per share:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Numerator:
Net income	$	19,715	$	15,627	$	47,396	$	43,316
Earnings allocated to participating securities	(10)		(17)		(26)		(51)
Numerator for earnings per share - basic and diluted	$	19,705	$	15,610	$	47,370	$	43,265

Denominator:
Weighted average common shares outstanding	31,829,250		28,787,662		31,598,650		28,887,757
Dilutive effect of outstanding restricted stock units	137,187		72,643		102,574		56,761
Weighted average common shares outstanding, including all dilutive potential shares	31,966,437		28,860,305		31,701,224		28,944,518

Earnings per share - Basic	$	0.62	$	0.54	$	1.50	$	1.50
Earnings per share - Diluted	$	0.62	$	0.54	$	1.49	$	1.49

FORECLOSED ASSETS (Tables)

9 Months Ended

Sep. 30, 2023

Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract]

Schedule of foreclosed assets activity

Foreclosed assets activity is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Beginning balance	$	3,080	$	2,891	$	3,030	$	3,278
Acquired	—		—		271		—
Transfers from loans	879		—		1,049		27

Proceeds from sales	(2,990)		(29)		(3,274)		(476)

Net gain on sales	564		20		632		118
Direct write-downs	(14)		(245)		(189)		(310)
Ending balance	$	1,519	$	2,637	$	1,519	$	2,637

Schedule of gains (losses) on foreclosed assets

Gains (losses) on foreclosed assets includes the following:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Direct write-downs	$	(14)	$	(245)	$	(189)	$	(310)
Net gain on sales	564		20		632		118
Gains (losses) on foreclosed assets	$	550	$	(225)	$	443	$	(192)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2023
Trading Arrangements, by Individual
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

ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Use of Estimates

Segment Reporting

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or stockholders’ equity.

Subsequent Events

In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.

Impact of Recently Adopted Accounting Standards


	January 1, 2023
(dollars in thousands)	Pre-ASC 326 Adoption		Impact of ASC 326 Adoption		As Reported under ASC 326

Assets:
Allowance for credit losses on loans
Commercial and industrial	$	3,279	$	(822)	$	2,457
Commercial real estate - owner occupied	1,193		587		1,780
Commercial real estate - non-owner occupied	6,721		501		7,222
Construction and land development	4,223		1,969		6,192
Multi-family	1,472		85		1,557
One-to-four family residential	1,759		797		2,556
Agricultural and farmland	796		1,567		2,363
Municipal, consumer, and other	5,890		2,299		8,189
Allowance for credit losses on loans	$	25,333	$	6,983	$	32,316

Liabilities:
Allowance for credit losses on unfunded commitments	$	—	$	2,899	$	2,899

Recent Accounting Pronouncements

- Definition

Disclosure of accounting policy for segment reporting.

+ References + Details

DEPOSITS

9 Months Ended

Sep. 30, 2023

Deposits [Abstract]

DEPOSITS

The Company’s deposits are summarized below:


(dollars in thousands)	September 30, 2023		December 31, 2022

Noninterest-bearing deposits	$	1,086,877	$	994,954
Interest-bearing deposits:
Interest-bearing demand	1,134,721		1,139,150
Money market	673,780		555,425
Savings	623,083		634,527
Time	679,607		262,968
Total interest-bearing deposits	3,111,191		2,592,070
Total deposits	$	4,198,068	$	3,587,024

As of September 30, 2023, time deposits included $115.0 million of brokered deposits. There were no brokered deposits as of December 31, 2022. Interest-bearing demand deposits included $38.7 million of reciprocal transaction deposits as of September 30, 2023. Money market deposits included $12.8 million and $1.7 million of reciprocal transaction deposits as of September 30, 2023 and December 31, 2022, respectively. Time deposits included $35.5 million and $1.6 million of reciprocal time deposits as of September 30, 2023, and December 31, 2022, respectively.

The aggregate amounts of time deposits in denominations of $250 thousand or more amounted to $115.9 million and $27.2 million as of September 30, 2023 and December 31, 2022, respectively. The aggregate amounts of time deposits in denominations of $100 thousand or more amounted to $302.3 million and $92.6 million as of September 30, 2023 and December 31, 2022, respectively.

The components of interest expense on deposits are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Interest-bearing demand	$	761	$	144	$	1,902	$	430
Money market	2,041		203		4,492		434
Savings	249		53		616		155
Time	4,160		187		6,898		643
Total interest expense on deposits	$	7,211	$	587	$	13,908	$	1,662

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 47,396	$ 43,316
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	2,362	2,296
Provision for credit losses	6,460	(53)
Net amortization of debt securities	4,391	5,337
Deferred income tax expense (benefit)	2,492	(245)
Stock-based compensation	1,559	1,602
Net accretion of discount and deferred loan fees on loans	(5,312)	(4,320)
Net realized loss on sales of securities	1,820	0
Net unrealized loss on equity securities	61	447
Net loss (gain) on disposals of bank premises and equipment	(84)	8
Net gain on sales of bank premises held for sale	(75)	(187)
Impairment losses on bank premises held for sale	0	61
Net gain on sales of foreclosed assets	(632)	(118)
Write-down of foreclosed assets	189	310
Amortization of intangibles	1,950	733
Decrease (increase) in mortgage servicing rights	460	(2,446)
Amortization of discount and issuance costs on subordinated notes and debentures	104	109
Amortization of discount on Federal Home Loan Bank advances	275	0
Amortization of premium on interest-bearing time deposits with banks	0	5
Amortization of premium on time deposits	(330)	(164)
Mortgage loans originated for sale	(53,187)	(50,467)
Proceeds from sale of mortgage loans	52,976	54,379
Net gain on sale of mortgage loans	(1,125)	(1,267)
Increase in cash surrender value of bank owned life insurance	(408)	(122)
Increase in accrued interest receivable	(828)	(1,980)
Decrease in other assets	12,530	289
Increase (decrease) in other liabilities	(20,198)	1,583
Net cash provided by operating activities	52,846	49,106
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities of interest-bearing time deposits with banks	249	485
Purchase of interest-bearing time deposits with banks	(500)	0
Proceeds from sales of securities available-for-sale	185,280	0
Proceeds from paydowns, maturities, and calls of debt securities	74,616	129,629
Purchase of securities	(3,010)	(368,794)
Purchase of loans	(49,859)	0
Net increase in loans	(32,506)	(74,769)
Purchase of restricted stock	(20,143)	(1,311)
Proceeds from redemption of restricted stock	19,765	0
Purchases of bank premises and equipment	(1,951)	(683)
Proceeds from sales of bank premises and equipment	222	8
Proceeds from sales of bank premises held for sale	310	1,297
Proceeds from sales of foreclosed assets	3,274	476
Net cash paid for acquisition of Town and Country	(14,454)	0
Net cash provided by (used in) investing activities	161,293	(313,662)
CASH FLOWS FROM FINANCING ACTIVITIES
Net decrease in deposits	(109,043)	(94,578)
Net decrease in repurchase agreements	(14,181)	(13,126)
Net decrease (increase) in Federal Home Loan Bank advances	(69,064)
Net decrease (increase) in Federal Home Loan Bank advances		60,000
Taxes paid related to the vesting of restricted stock units	(181)	(57)
Repurchase of common stock	(7,488)	(4,783)
Cash dividends and dividend equivalents paid	(16,428)	(13,953)
Net cash used in financing activities	(216,385)	(66,497)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(2,246)	(331,053)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	114,159	409,268
CASH AND CASH EQUIVALENTS AT END OF PERIOD	111,913	78,215
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	21,788	4,851
Cash paid for income taxes	15,867	13,805
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING ACTIVITIES
Transfers of loans to foreclosed assets	1,049	27
Transfers of bank premises and equipment to bank premises held for sale	$ 35	$ 0

SECURITIES - Amortized cost and Fair values of held-to-maturity securities transferred from available-for-sale securities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Mar. 31, 2022
Available-for-sale:
Amortized Cost	$ 527,144	$ 541,600
Debt securities held-to-maturity	450,313	478,801
U.S. government agency
Available-for-sale:
Amortized Cost	88,442	88,424
Debt securities held-to-maturity	76,050	78,696
Agency residential
Available-for-sale:
Amortized Cost	98,115	102,728
Debt securities held-to-maturity	88,834	96,258
Agency commercial
Available-for-sale:
Amortized Cost	301,243	308,281
Debt securities held-to-maturity	$ 247,765	$ 261,799
Debt Securities Transferred
Available-for-sale:
Amortized Cost			$ 114,850
Debt securities held-to-maturity			104,131
Debt Securities Transferred \| U.S. government agency
Available-for-sale:
Amortized Cost			78,841
Debt securities held-to-maturity			71,048
Debt Securities Transferred \| Agency residential
Available-for-sale:
Amortized Cost			8,175
Debt securities held-to-maturity			7,651
Debt Securities Transferred \| Agency commercial
Available-for-sale:
Amortized Cost			27,834
Debt securities held-to-maturity			$ 25,432

ACCOUNTING POLICIES - Impact of ASC 326 on the allowance for credit losses (Details) - USD ($) $ in Thousands		9 Months Ended
	Jan. 01, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
ACCOUNTING POLICIES
Retained earnings (accumulated deficit)		$ (256,050)		$ (232,004)
Allowance for Credit Losses		38,863	$ 37,814	25,333	$ 25,060	$ 24,734	$ 23,936
PCD allowance established in acquisition		1,247
Commercial and industrial
ACCOUNTING POLICIES
Allowance for Credit Losses		4,249	3,735	3,279	2,984	2,981	2,440
PCD allowance established in acquisition		69
Commercial real estate - owner occupied
ACCOUNTING POLICIES
Allowance for Credit Losses		2,254	2,362	1,193	1,160	1,224	1,840
PCD allowance established in acquisition		127
Commercial real estate - non-owner occupied
ACCOUNTING POLICIES
Allowance for Credit Losses		7,630	7,538	6,721	6,882	6,611	8,145
PCD allowance established in acquisition		239
Construction and land development
ACCOUNTING POLICIES
Allowance for Credit Losses		6,882	5,834	4,223	4,376	4,059	4,914
PCD allowance established in acquisition		240
Multi-family
ACCOUNTING POLICIES
Allowance for Credit Losses		2,535	2,603	1,472	1,323	1,375	1,263
PCD allowance established in acquisition		68
One-to-four family residential
ACCOUNTING POLICIES
Allowance for Credit Losses		4,088	4,077	1,759	1,660	1,696	1,311
PCD allowance established in acquisition		492
Agricultural and farmland
ACCOUNTING POLICIES
Allowance for Credit Losses		2,272	2,607	796	841	924	845
PCD allowance established in acquisition		5
Municipal, consumer, and other
ACCOUNTING POLICIES
Allowance for Credit Losses		8,953	$ 9,058	5,890	$ 5,834	$ 5,864	$ 3,178
PCD allowance established in acquisition		7
Allowance for credit losses on unfunded commitments
ACCOUNTING POLICIES
Allowance for Credit Losses		4,400		$ 0
Cumulative Effect, Period of Adoption, Adjustment
ACCOUNTING POLICIES
Retained earnings (accumulated deficit)	$ 6,900
Allowance for Credit Losses	6,983	6,983
PCD allowance established in acquisition	200
Cumulative Effect, Period of Adoption, Adjustment \| Commercial and industrial
ACCOUNTING POLICIES
Allowance for Credit Losses	(822)	(822)
Cumulative Effect, Period of Adoption, Adjustment \| Commercial real estate - owner occupied
ACCOUNTING POLICIES
Allowance for Credit Losses	587	587
Cumulative Effect, Period of Adoption, Adjustment \| Commercial real estate - non-owner occupied
ACCOUNTING POLICIES
Allowance for Credit Losses	501	501
Cumulative Effect, Period of Adoption, Adjustment \| Construction and land development
ACCOUNTING POLICIES
Allowance for Credit Losses	1,969	1,969
Cumulative Effect, Period of Adoption, Adjustment \| Multi-family
ACCOUNTING POLICIES
Allowance for Credit Losses	85	85
Cumulative Effect, Period of Adoption, Adjustment \| One-to-four family residential
ACCOUNTING POLICIES
Allowance for Credit Losses	797	797
Cumulative Effect, Period of Adoption, Adjustment \| Agricultural and farmland
ACCOUNTING POLICIES
Allowance for Credit Losses	1,567	1,567
Cumulative Effect, Period of Adoption, Adjustment \| Municipal, consumer, and other
ACCOUNTING POLICIES
Allowance for Credit Losses	2,299	$ 2,299
Cumulative Effect, Period of Adoption, Adjustment \| Allowance for credit losses on unfunded commitments
ACCOUNTING POLICIES
Allowance for Credit Losses	2,899
Cumulative Effect, Period of Adoption, Adjusted Balance
ACCOUNTING POLICIES
Allowance for Credit Losses	32,316
Cumulative Effect, Period of Adoption, Adjusted Balance \| Commercial and industrial
ACCOUNTING POLICIES
Allowance for Credit Losses	2,457
Cumulative Effect, Period of Adoption, Adjusted Balance \| Commercial real estate - owner occupied
ACCOUNTING POLICIES
Allowance for Credit Losses	1,780
Cumulative Effect, Period of Adoption, Adjusted Balance \| Commercial real estate - non-owner occupied
ACCOUNTING POLICIES
Allowance for Credit Losses	7,222
Cumulative Effect, Period of Adoption, Adjusted Balance \| Construction and land development
ACCOUNTING POLICIES
Allowance for Credit Losses	6,192
Cumulative Effect, Period of Adoption, Adjusted Balance \| Multi-family
ACCOUNTING POLICIES
Allowance for Credit Losses	1,557
Cumulative Effect, Period of Adoption, Adjusted Balance \| One-to-four family residential
ACCOUNTING POLICIES
Allowance for Credit Losses	2,556
Cumulative Effect, Period of Adoption, Adjusted Balance \| Agricultural and farmland
ACCOUNTING POLICIES
Allowance for Credit Losses	2,363
Cumulative Effect, Period of Adoption, Adjusted Balance \| Municipal, consumer, and other
ACCOUNTING POLICIES
Allowance for Credit Losses	8,189
Cumulative Effect, Period of Adoption, Adjusted Balance \| Allowance for credit losses on unfunded commitments
ACCOUNTING POLICIES
Allowance for Credit Losses	$ 2,899

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Summary of assets measured at fair value on a recurring basis

The following tables present the balances of the assets measured at fair value on a recurring basis:


	September 30, 2023
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Debt securities available-for-sale:
U.S. Treasury	$	154,394	$	—	$	—	$	154,394
U.S. government agency	—		50,715		—		50,715
Municipal	—		195,201		—		195,201
Mortgage-backed:
Agency residential	—		177,050		—		177,050
Agency commercial	—		124,329		—		124,329
Corporate	—		51,474		—		51,474
Equity securities with readily determinable fair values	3,106		—		—		3,106
Mortgage servicing rights	—		—		20,156		20,156
Derivative financial assets	—		10,188		—		10,188
Derivative financial liabilities	—		9,674		—		9,674


	December 31, 2022
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Debt securities available-for-sale:
U.S. Treasury	$	154,515	$	—	$	—	$	154,515
U.S. government agency	—		55,157		—		55,157
Municipal	—		243,829		—		243,829
Mortgage-backed:
Agency residential	—		195,441		—		195,441
Agency commercial	—		132,888		—		132,888
Corporate	—		61,694		—		61,694
Equity securities with readily determinable fair values	3,029		—		—		3,029
Mortgage servicing rights	—		—		10,147		10,147
Derivative financial assets	—		7,610		—		7,610
Derivative financial liabilities	—		6,981		—		6,981

Schedule of quantitative information about the unobservable inputs used in recurring Level 3 fair value measurements

The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands):

September 30, 2023

Fair Value

Valuation Technique

Unobservable Inputs

Range
(Weighted Average)

Mortgage servicing rights

20,156

Discounted cash flows

Constant pre-payment rates (CPR)

6.5% to 41.5% (8.2%)

Discount rate

9.0% to 45.9% (9.8%)

December 31, 2022

Fair Value

Valuation Technique

Unobservable Inputs

Range
(Weighted Average)

Mortgage servicing rights

10,147

Discounted cash flows

Constant pre-payment rates (CPR)

5.3% to 59.7% (8.2%)

Discount rate

9.0% to 11.7% (9.3%)

Summary of assets measured at fair value on a nonrecurring basis

The following tables present the balances of the assets measured at fair value on a nonrecurring basis:


	September 30, 2023
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Loans held for sale	$	—	$	3,563	$	—	$	3,563
Collateral-dependent loans	—		—		31,484		31,484
Bank premises held for sale	—		—		35		35
Foreclosed assets	—		—		1,519		1,519


	December 31, 2022
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Loans held for sale	$	—	$	615	$	—	$	615
Collateral-dependent loans	—		—		17,460		17,460
Bank premises held for sale	—		—		235		235
Foreclosed assets	—		—		3,030		3,030

Schedule of quantitative information about the unobservable inputs used in non-recurring Level 3 fair value measurements

The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands):

September 30, 2023

Fair
Value

Valuation
Technique

Unobservable Inputs

Range
(Weighted Average)

Collateral-dependent loans

31,484

Appraisal of collateral

Appraisal adjustments

Not meaningful

Bank premises held for sale

Appraisal

Appraisal adjustments

7% (7%)

Foreclosed assets

1,519

Appraisal

Appraisal adjustments

7% (7%)

December 31, 2022

Fair Value

Valuation Technique

Unobservable Inputs

Range

(Weighted Average)

Collateral-dependent loans

17,460

Appraisal of collateral

Appraisal adjustments

Not meaningful

Bank premises held for sale

235

Appraisal

Appraisal adjustments

7% (7%)

Foreclosed assets

3,030

Appraisal

Appraisal adjustments

7% (7%)

Summary information on the carrying amounts and estimated fair values of the Company's financial instruments

The following table provides summary information on the carrying amounts and estimated fair values of the Company’s financial instruments:


(dollars in thousands)	Fair Value Hierarchy Level	September 30, 2023				December 31, 2022
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value

Financial assets:
Cash and cash equivalents	Level 1	$	111,913	$	111,913	$	114,159	$	114,159
Debt securities held-to-maturity	Level 2	527,144		450,313		541,600		478,801
Restricted stock	Level 3	11,165		11,165		7,965		7,965
Loans, net	Level 3	3,303,923		3,252,850		2,594,920		2,566,930
Investments in unconsolidated subsidiaries	Level 3	1,614		1,614		1,165		1,165
Accrued interest receivable	Level 2	23,447		23,447		19,506		19,506

Financial liabilities:
Time deposits	Level 3	679,607		668,960		262,968		253,619
Securities sold under agreements to repurchase	Level 2	28,900		28,900		43,081		43,081
Subordinated notes	Level 3	39,454		36,852		39,395		37,205
Junior subordinated debentures	Level 3	52,774		43,600		37,780		37,030
Accrued interest payable	Level 2	3,707		3,707		1,363		1,363

ACQUISITIONS - Schedule of pro forma (Details) - Town and Country - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Business Acquisition [Line Items]
Total revenues (net interest income and noninterest income)	$ 57,459	$ 56,902	$ 174,015	$ 164,845
Net income	$ 19,497	$ 18,207	$ 47,697	$ 52,617
Earnings per share - basic (in dollars per share)	$ 0.61	$ 0.57	$ 1.49	$ 1.63
Earnings per share - diluted (in dollars per share)	$ 0.61	$ 0.56	$ 1.49	$ 1.63

DERIVATIVE FINANCIAL INSTRUMENTS - Interest rate contracts not designated as hedging instruments (Details) - Not Designated as Hedging Instrument - Interest Rate Swap - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Other Assets
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount	$ 101,612	$ 106,995
Derivative financial assets	9,674	6,981
Other Assets \| Commercial Borrower
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount	0	0
Derivative financial assets	0	0
Other Assets \| Financial Institutions Borrower
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount	101,612	106,995
Derivative financial assets	9,674	6,981
Other Liabilities
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative liability notional amount	101,612	106,995
Derivative financial liabilities fair value	(9,674)	(6,981)
Other Liabilities \| Commercial Borrower
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative liability notional amount	101,612	106,995
Derivative financial liabilities fair value	(9,674)	(6,981)
Other Liabilities \| Financial Institutions Borrower
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative liability notional amount	0	0
Derivative financial liabilities fair value	$ 0	$ 0

SECURITIES - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
SECURITIES - Narrative (Details) $ in Thousands	Sep. 30, 2023 USD ($) security	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) security	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
SECURITIES
Number of securities in an unrealized loss position for a period of twelve months or more \| security	669		669
Number of securities in an unrealized loss position for a period of less than twelve months \| security	225		225
Allowance for credit losses	$ 0		$ 0
Debt securities, available-for-sale, accrued interest	6,200		6,200
Gross realized losses	813	$ 0	1,820	$ 0
Proceeds from sales of securities available-for-sale	39,436	0	185,280	0
Impairments of downward adjustments			100
Adjustment to carrying value of equity securities with no readily determinable fair value			200
Upward adjustment on equity securities with no readily determinable fair value	0		0		$ 0
Proceeds from sale of equity securities	0	$ 0	$ 0	$ 0
Municipal
SECURITIES
Percentage of securities with general obligation issue			79.00%
Allowance for credit losses	0		$ 0
Corporate
SECURITIES
Allowance for credit losses	0		0
Provision for credit losses	(800)
Assets Pledged
SECURITIES
Carrying value of securities pledged to secure public and trust deposits	$ 449,200		$ 449,200		$ 332,600

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
ASSETS
Cash and due from banks	$ 24,757	$ 18,970
Interest-bearing deposits with banks	87,156	95,189
Cash and cash equivalents	111,913	114,159
Interest-bearing time deposits with banks	500	0
Debt securities available-for-sale, at fair value	753,163	843,524
Debt securities held-to-maturity (fair value of $450,313 at 2023 and $478,801 at 2022)	527,144	541,600
Equity securities with readily determinable fair value	3,106	3,029
Equity securities with no readily determinable fair value	2,300	1,977
Restricted stock, at cost	11,165	7,965
Loans held for sale	3,563	615
Loans, before allowance for credit losses	3,342,786	2,620,253
Allowance for credit losses	(38,863)	(25,333)
Loans, net of allowance for credit losses	3,303,923	2,594,920
Bank owned life insurance	23,747	7,557
Bank premises and equipment, net	64,713	50,469
Bank premises held for sale	35	235
Foreclosed assets	1,519	3,030
Goodwill	59,820	29,322
Intangible assets, net	21,402	1,070
Mortgage servicing rights, at fair value	20,156	10,147
Investments in unconsolidated subsidiaries	1,614	1,165
Accrued interest receivable	23,447	19,506
Other assets	58,538	56,444
Total assets	4,991,768	4,286,734
Deposits:
Noninterest-bearing	1,086,877	994,954
Interest-bearing	3,111,191	2,592,070
Total deposits	4,198,068	3,587,024
Securities sold under agreements to repurchase	28,900	43,081
Federal Home Loan Bank advances	177,650	160,000
Subordinated notes	39,454	39,395
Junior subordinated debentures issued to capital trusts	52,774	37,780
Other liabilities	38,671	45,822
Total liabilities	4,535,517	3,913,102
COMMITMENTS AND CONTINGENCIES (Note 15)
Stockholders' Equity
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding	0	0
Common stock, $0.01 par value; 125,000,000 shares authorized; shares issued of 32,730,698 at 2023 and 29,308,491 at 2022; shares outstanding of 31,774,140 at 2023 and 28,752,626 at 2022	327	293
Surplus	295,483	222,783
Retained earnings	256,050	232,004
Accumulated other comprehensive income (loss)	(78,432)	(71,759)
Treasury stock at cost, 956,558 shares at 2023 and 555,865 at 2022	(17,177)	(9,689)
Total stockholders’ equity	456,251	373,632
Total liabilities and stockholders’ equity	$ 4,991,768	$ 4,286,734

STOCK-BASED COMPENSATION PLANS - Summary of stock-based compensation expense (benefit) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	$ 611	$ 400	$ 1,516	$ 1,637
Restricted stock units
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	313	230	907	1,072
Performance restricted stock units
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	295	119	652	530
Total awards classified as equity
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	608	349	1,559	1,602
Stock appreciation rights
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	$ 3	$ 51	$ (43)	$ 35

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

ACCOUNTING POLICIES - Narrative (Details)	9 Months Ended
ACCOUNTING POLICIES - Narrative (Details)	Sep. 30, 2023 segment
Accounting Policies [Abstract]
Number of segments	1

REGULATORY MATTERS

9 Months Ended

Sep. 30, 2023

Banking and Thrift, Other Disclosure [Abstract]

REGULATORY MATTERS

The Company (on a consolidated basis) and the Bank are each subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by the regulators that, if undertaken, could have a direct material effect on the consolidated financial statements of the Company and the Bank. Additionally, the ability of the Company to pay dividends to its stockholders is dependent upon the ability of the Bank to pay dividends to the Company.

Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by regulators about components, risk weightings, and other factors. As allowed under the regulations, the Company and the Bank elected to exclude accumulated other comprehensive income, including unrealized gains and losses on debt securities, in the computation of regulatory capital. Prompt corrective action provisions are not applicable to bank holding companies.

Additionally, the Company and the Bank must maintain a “capital conservation buffer” to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management. As of September 30, 2023 and December 31, 2022, the capital conservation buffer was 2.5% of risk-weighted assets.

As of September 30, 2023, the Company and the Bank each met all capital adequacy requirements to which they were subject.

The actual and required capital amounts and ratios of the Company (on a consolidated basis) and the Bank are as follows:


	September 30, 2023
	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio

Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets)	$	590,174	15.09	%	$	312,868	8.00	%	N/A		N/A
Tier 1 Capital (to Risk Weighted Assets)	515,643		13.18		234,651		6.00		N/A		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	464,483		11.88		175,988		4.50		N/A		N/A
Tier 1 Capital (to Average Assets)	515,643		10.34		199,420		4.00		N/A		N/A

Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	$	577,525	14.78	%	$	312,537	8.00	%	$	390,671	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	542,448		13.89		234,403		6.00		312,537		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	542,448		13.89		175,802		4.50		253,936		6.50
Tier 1 Capital (to Average Assets)	542,448		10.89		199,216		4.00		249,020		5.00


	December 31, 2022
	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio

Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets)	$	516,556	16.27	%	$	254,052	8.00	%	N/A		N/A
Tier 1 Capital (to Risk Weighted Assets)	451,828		14.23		190,539		6.00		N/A		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	415,213		13.07		142,904		4.50		N/A		N/A
Tier 1 Capital (to Average Assets)	451,828		10.48		172,427		4.00		N/A		N/A

Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	$	489,316	15.43	%	$	253,643	8.00	%	$	317,054	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	463,983		14.63		190,233		6.00		253,643		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	463,983		14.63		142,674		4.50		206,085		6.50
Tier 1 Capital (to Average Assets)	463,983		10.78		172,240		4.00		215,300		5.00

- Definition

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

+ References + Details

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Accretable Yield For Loans PREADOPTION (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Changes in accretable yield for loans acquired with deteriorated credit quality
Beginning balance	$ 537	$ 413
Reclassification from non-accretable difference	283	500
Accretion income	(58)	(151)
Ending balance	$ 762	$ 762

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring basis (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	$ 753,163,000	$ 843,524,000
Equity securities with readily determinable fair values	3,106,000	3,029,000
Mortgage servicing rights, at fair value	20,156,000	10,147,000
U.S. Treasury
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	154,394,000	154,515,000
U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	50,715,000	55,157,000
Municipal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	195,201,000	243,829,000
Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	177,050,000	195,441,000
Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	124,329,000	132,888,000
Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	51,474,000	61,694,000
Fair Value, Recurring
FAIR VALUE OF FINANCIAL INSTRUMENTS
Equity securities with readily determinable fair values	3,106,000	3,029,000
Mortgage servicing rights, at fair value	20,156,000	10,147,000
Derivative financial assets	10,188,000	7,610,000
Derivative financial liabilities	9,674,000	6,981,000
Fair Value, Recurring \| U.S. Treasury
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	154,394,000	154,515,000
Fair Value, Recurring \| U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	50,715,000	55,157,000
Fair Value, Recurring \| Municipal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	195,201,000	243,829,000
Fair Value, Recurring \| Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	177,050,000	195,441,000
Fair Value, Recurring \| Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	124,329,000	132,888,000
Fair Value, Recurring \| Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	51,474,000	61,694,000
Fair Value, Recurring \| Level 1
FAIR VALUE OF FINANCIAL INSTRUMENTS
Equity securities with readily determinable fair values	3,106,000	3,029,000
Mortgage servicing rights, at fair value	0	0
Derivative financial assets	0	0
Derivative financial liabilities	0	0
Fair Value, Recurring \| Level 1 \| U.S. Treasury
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	154,394,000	154,515,000
Fair Value, Recurring \| Level 1 \| U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring \| Level 1 \| Municipal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring \| Level 1 \| Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring \| Level 1 \| Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring \| Level 1 \| Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring \| Level 2
FAIR VALUE OF FINANCIAL INSTRUMENTS
Equity securities with readily determinable fair values	0	0
Mortgage servicing rights, at fair value	0	0
Derivative financial assets	10,188,000	7,610,000
Derivative financial liabilities	9,674,000	6,981,000
Fair Value, Recurring \| Level 2 \| U.S. Treasury
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring \| Level 2 \| U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	50,715,000	55,157,000
Fair Value, Recurring \| Level 2 \| Municipal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	195,201,000	243,829,000
Fair Value, Recurring \| Level 2 \| Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	177,050,000	195,441,000
Fair Value, Recurring \| Level 2 \| Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	124,329,000	132,888,000
Fair Value, Recurring \| Level 2 \| Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	51,474,000	61,694,000
Fair Value, Recurring \| Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Equity securities with readily determinable fair values	0	0
Mortgage servicing rights, at fair value	20,156,000	10,147,000
Derivative financial assets	0	0
Derivative financial liabilities	0	0
Fair Value, Recurring \| Level 3 \| U.S. Treasury
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring \| Level 3 \| U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring \| Level 3 \| Municipal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring \| Level 3 \| Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring \| Level 3 \| Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	0	0
Fair Value, Recurring \| Level 3 \| Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	$ 0	$ 0

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 19,715	$ 15,627	$ 47,396	$ 43,316
OTHER COMPREHENSIVE LOSS
Unrealized losses on debt securities available-for-sale	(11,326)	(35,358)	(12,521)	(112,931)
Reclassification adjustment for losses on securities available-for-sale realized in income	13	0	1,820	0
Reclassification adjustment for amortization of net unrealized losses on debt securities transferred to held-to-maturity	518	504	1,483	1,234
Unrealized gains on derivative instruments	58	374	219	1,117
Reclassification adjustment for net settlements on derivative instruments	(131)	14	(334)	177
Total other comprehensive loss, before tax	(10,868)	(34,466)	(9,333)	(110,403)
Income tax benefit	(3,098)	(9,824)	(2,660)	(31,470)
Total other comprehensive loss	(7,770)	(24,642)	(6,673)	(78,933)
TOTAL COMPREHENSIVE INCOME (LOSS)	$ 11,945	$ (9,015)	$ 40,723	$ (35,617)

STOCK-BASED COMPENSATION PLANS - Narrative (Details) $ in Thousands	1 Months Ended	9 Months Ended
	Feb. 28, 2022	Sep. 30, 2023 USD ($) installment shares	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
STOCK-BASED COMPENSATION PLANS
Vesting percentage of unvested restricted stock units and performance restricted stock units, if retirement eligibility requirements are met	100.00%
Accelerated stock-based compensation expense		$ 600
Restricted stock units
STOCK-BASED COMPENSATION PLANS
Number of shares participant is entitled to receive (in shares) \| shares		1
Fair value of units granted		$ 1,000	$ 900
Intrinsic value of restricted stock units		1,100	700
Unrecognized compensation cost related to non-vested stock-based compensation agreements		$ 1,300
Weighted average remaining service period		1 year 8 months 12 days
Performance restricted stock units
STOCK-BASED COMPENSATION PLANS
Unrecognized compensation cost related to non-vested stock-based compensation agreements		$ 400
Weighted average remaining service period		1 year 6 months
Performance restricted stock units \| Share-Based Payment Arrangement, Employee
STOCK-BASED COMPENSATION PLANS
Fair value of units granted		$ 400	$ 500
Performance restricted stock units \| Minimum
STOCK-BASED COMPENSATION PLANS
Percentage of the number of units granted that may be earned		0.00%
Performance restricted stock units \| Maximum
STOCK-BASED COMPENSATION PLANS
Percentage of the number of units granted that may be earned		150.00%
Stock appreciation rights
STOCK-BASED COMPENSATION PLANS
Unrecognized compensation cost related to non-vested stock-based compensation agreements		$ 0
Vesting period		4 years
Stock appreciation rights plan liability recorded for the outstanding units		$ 400		$ 500
Stock appreciation rights plan liability recorded for the previously exercised units		$ 200		$ 500
Number of installments in which the liability recorded for previously exercised units will be paid \| installment		1
Omnibus Incentive Plan
STOCK-BASED COMPENSATION PLANS
Authorized number of shares (in shares) \| shares		1,820,000

STOCK-BASED COMPENSATION PLANS

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION PLANS

The Company has adopted the HBT Financial, Inc. Omnibus Incentive Plan (the “Omnibus Incentive Plan”). The Omnibus Incentive Plan provides for grants of (i) stock options, (ii) stock appreciation rights, (iii) restricted shares, (iv) restricted stock units, (v) performance awards, (vi) other share-based awards and (vi) other cash-based awards to eligible employees, non-employee directors and consultants of the Company. The maximum number of shares of common stock available for issuance under the Omnibus Incentive Plan is 1,820,000 shares.

The following is a summary of stock-based compensation expense (benefit):


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Restricted stock units	$	313	$	230	$	907	$	1,072
Performance restricted stock units	295		119		652		530
Total awards classified as equity	608		349		1,559		1,602
Stock appreciation rights	3		51		(43)		35
Total stock-based compensation expense	$	611	$	400	$	1,516	$	1,637

In February 2022, all outstanding restricted stock unit and performance restricted stock unit agreements were modified to address treatment upon retirement. In the event of retirement, and if the retirement eligibility requirements are met, then 100% of unvested restricted stock units and performance restricted stock units will continue to vest in accordance with the originally established vesting schedule. The retirement modification resulted in the acceleration of $0.6 million of expense, although total compensation costs related to the modified agreements remained the same.

Restricted Stock Units

A restricted stock unit grants a participant the right to receive one share of the Company’s common stock, following the completion of the requisite service period. Restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and is recognized on a straight-line basis over the service period for the entire award. Dividend equivalents on restricted stock units, which are either accrued until vested or paid at the same time as dividends on common stock, are classified as dividends charged to retained earnings.

During the nine months ended September 30, 2023 and 2022, the total grant date fair value of the restricted stock units granted was $1.0 million and $0.9 million, respectively, based on the grant date closing prices. The total intrinsic value of restricted stock that vested during the nine months ended September 30, 2023 and 2022 was $1.1 million and $0.7 million, respectively.

The following is a summary of restricted stock unit activity:


	Three Months Ended September 30,
	2023			2022
	Restricted Stock Units	Weighted Average Grant Date Fair Value		Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	129,422	$	19.58	120,631	$	17.98
Granted	—	—		—	—
Vested	—	—		—	—
Forfeited	(520)	21.23		(1,328)	18.35
Ending balance	128,902	$	19.57	119,303	$	17.98


	Nine Months Ended September 30,
	2023			2022
	Restricted Stock Units	Weighted Average Grant Date Fair Value		Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	139,986	$	18.01	109,244	$	17.27
Granted	41,847	22.72		46,312	19.11
Vested	(51,693)	17.91		(34,925)	17.26
Forfeited	(1,238)	18.53		(1,328)	18.35
Ending balance	128,902	$	19.57	119,303	$	17.98

As of September 30, 2023, unrecognized compensation cost related to the non-vested restricted stock units was $1.3 million. This cost is expected to be recognized over the weighted average remaining service period of 1.7 years.

Performance Restricted Stock Units

A performance restricted stock unit is similar to a restricted stock unit, except that the number of shares of the Company’s common stock awarded is based on a performance condition and the completion of the requisite service period. The number of shares of the Company’s common stock that may be earned ranges from 0% to 150% of the number of performance restricted stock units granted. Performance restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and an assessment of the probable outcome of the performance condition. Compensation cost is recognized on a straight-line basis over the service period of the entire award. Changes in the performance condition probability assessment result in cumulative catch-up adjustments to the compensation cost recognized. Dividend equivalents on performance restricted stock units, which are accrued until vested, are classified as dividends charged to retained earnings.

During the nine months ended September 30, 2023 and 2022, the total fair value of the performance restricted stock units granted was $0.4 million and $0.5 million, respectively, based on the grant date closing prices and an assessment of the probable outcome of the performance condition on the grant date.

The following is a summary of performance restricted stock unit activity:


	Three Months Ended September 30,
	2023			2022
	Performance Restricted Stock Units	Weighted Average Grant Date Fair Value		Performance Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	79,097	$	18.25	62,067	$	17.02
Granted	—	—		—	—
Vested	—	—		—	—
Forfeited	—	—		—	—
Ending balance	79,097	$	18.25	62,067	$	17.02


	Nine Months Ended September 30,
	2023			2022
	Performance Restricted Stock Units	Weighted Average Grant Date Fair Value		Performance Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	62,067	$	17.02	38,344	$	15.72
Granted	17,030	22.72		23,723	19.14
Vested	—	—		—	—
Forfeited	—	—		—	—
Ending balance	79,097	$	18.25	62,067	$	17.02

As of September 30, 2023, unrecognized compensation cost related to non-vested performance restricted stock units was $0.4 million, based on the current assessment of the probable outcome of the performance conditions. This cost is expected to be recognized over the weighted average remaining service period of 1.5 years.

Stock Appreciation Rights

A stock appreciation right grants a participant the right to receive an amount of cash, the value of which equals the appreciation in the Company’s stock price between the grant date and the exercise date. Stock appreciation rights are classified as liabilities. The liability is based on an option-pricing model used to estimate the fair value of the stock appreciation rights. Compensation cost for non-vested stock appreciation rights is recognized on a straight line basis over the service period of the entire award. The non-vested stock appreciation rights vest in four equal annual installments beginning on the first anniversary of the grant date.

The following is a summary of stock appreciation rights activity:


	Three Months Ended September 30,
	2023			2022
	Stock Appreciation Rights Outstanding	Weighted Average Grant Date Assigned Value		Stock Appreciation Rights Outstanding	Weighted Average Grant Date Assigned Value
Beginning balance	73,440	$	16.32	91,800	$	16.32
Granted	—	—		—	—
Exercised	—	—		—	—
Expired	—	—		—	—
Forfeited	—	—		—	—
Ending balance	73,440	$	16.32	91,800	$	16.32


	Nine Months Ended September 30,
	2023			2022
	Stock Appreciation Rights	Weighted Average Grant Date Assigned Value		Stock Appreciation Rights	Weighted Average Grant Date Assigned Value
Beginning balance	73,440	$	16.32	97,920	$	16.32
Granted	—	—		—	—
Exercised	—	—		(6,120)	16.32
Expired	—	—		—	—
Forfeited	—	—		—	—
Ending balance	73,440	$	16.32	91,800	$	16.32

A further summary of stock appreciation rights as of September 30, 2023, is as follows:

Stock Appreciation Rights

Weighted Average
Remaining
Contractual Term

Grant Date Assigned Values

Outstanding

Exercisable

$16.32

73,440

5.9 years

As of September 30, 2023, there was no unrecognized compensation cost for stock appreciation rights.

As of September 30, 2023 and December 31, 2022, the liability recorded for outstanding stock appreciation rights was $0.4 million and $0.5 million, respectively. The Company uses an option pricing model to value the stock appreciation rights, using the assumptions in the following table. Expected volatility is derived from the historical volatility of the Company’s stock price and a selected peer group of industry-related companies.


	September 30, 2023		December 31, 2022
Risk-free interest rate	4.60	%	3.95	%
Expected volatility	37.29	%	36.54	%
Expected life (in years)	5.9		6.7
Expected dividend yield	3.73	%	3.27	%

As of September 30, 2023, the liability recorded for previously exercised stock appreciation rights was $0.2 million, which will be paid in one remaining annual installment in 2024. As of December 31, 2022, the liability recorded for previously exercised stock appreciation rights was $0.5 million.

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Individually evaluated for impairment by category of loans PREADOPTION (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Dec. 31, 2022
Unpaid Principal Balance
With an allowance recorded:			$ 23,893
With no related allowance:			49,926
Total loans individually evaluated for impairment:			73,819
Recorded Investment
With an allowance recorded:			23,780
With no related allowance:			47,935
Total loans individually evaluated for impairment:			71,715
Related Allowance			6,320
Average Recorded Investment
With an allowance recorded:	$ 24,041	$ 25,081
With no related allowance:	47,776	56,362
Total loans individually evaluated for impairment:	71,817	81,443
Interest Income Recognized
With an allowance recorded:	269	786
With no related allowance:	756	2,143
Total loans individually evaluated for impairment:	1,025	2,929
Commercial and industrial
Unpaid Principal Balance
With an allowance recorded:			268
With no related allowance:			4,564
Total loans individually evaluated for impairment:			4,832
Recorded Investment
With an allowance recorded:			254
With no related allowance:			4,564
Total loans individually evaluated for impairment:			4,818
Related Allowance			158
Average Recorded Investment
With an allowance recorded:	258	272
With no related allowance:	3,894	12,793
Total loans individually evaluated for impairment:	4,152	13,065
Interest Income Recognized
With an allowance recorded:	5	13
With no related allowance:	41	397
Total loans individually evaluated for impairment:	46	410
Commercial real estate - owner occupied
Unpaid Principal Balance
With an allowance recorded:			635
With no related allowance:			10,912
Total loans individually evaluated for impairment:			11,547
Recorded Investment
With an allowance recorded:			610
With no related allowance:			10,756
Total loans individually evaluated for impairment:			11,366
Related Allowance			168
Average Recorded Investment
With an allowance recorded:	739	1,297
With no related allowance:	11,651	11,524
Total loans individually evaluated for impairment:	12,390	12,821
Interest Income Recognized
With an allowance recorded:	11	55
With no related allowance:	141	388
Total loans individually evaluated for impairment:	152	443
Commercial real estate - non-owner occupied
Unpaid Principal Balance
With an allowance recorded:			14,269
With no related allowance:			16,327
Total loans individually evaluated for impairment:			30,596
Recorded Investment
With an allowance recorded:			14,261
With no related allowance:			16,248
Total loans individually evaluated for impairment:			30,509
Related Allowance			2,388
Average Recorded Investment
With an allowance recorded:	14,441	14,631
With no related allowance:	17,220	16,894
Total loans individually evaluated for impairment:	31,661	31,525
Interest Income Recognized
With an allowance recorded:	185	556
With no related allowance:	369	907
Total loans individually evaluated for impairment:	554	1,463
Construction and land development
Unpaid Principal Balance
With an allowance recorded:			0
With no related allowance:			92
Total loans individually evaluated for impairment:			92
Recorded Investment
With an allowance recorded:			0
With no related allowance:			82
Total loans individually evaluated for impairment:			82
Related Allowance			0
Average Recorded Investment
With an allowance recorded:	0	0
With no related allowance:	2,010	2,012
Total loans individually evaluated for impairment:	2,010	2,012
Interest Income Recognized
With an allowance recorded:	0	0
With no related allowance:	57	105
Total loans individually evaluated for impairment:	57	105
Multi-family
Unpaid Principal Balance
With an allowance recorded:			0
With no related allowance:			0
Total loans individually evaluated for impairment:			0
Recorded Investment
With an allowance recorded:			0
With no related allowance:			0
Total loans individually evaluated for impairment:			0
Related Allowance			0
Average Recorded Investment
With an allowance recorded:	0	0
With no related allowance:	0	0
Total loans individually evaluated for impairment:	0	0
Interest Income Recognized
With an allowance recorded:	0	0
With no related allowance:	0	0
Total loans individually evaluated for impairment:	0	0
One-to-four family residential
Unpaid Principal Balance
With an allowance recorded:			569
With no related allowance:			9,181
Total loans individually evaluated for impairment:			9,750
Recorded Investment
With an allowance recorded:			524
With no related allowance:			7,875
Total loans individually evaluated for impairment:			8,399
Related Allowance			44
Average Recorded Investment
With an allowance recorded:	349	513
With no related allowance:	8,119	8,341
Total loans individually evaluated for impairment:	8,468	8,854
Interest Income Recognized
With an allowance recorded:	2	11
With no related allowance:	99	240
Total loans individually evaluated for impairment:	101	251
Agricultural and farmland
Unpaid Principal Balance
With an allowance recorded:			0
With no related allowance:			4,440
Total loans individually evaluated for impairment:			4,440
Recorded Investment
With an allowance recorded:			0
With no related allowance:			4,033
Total loans individually evaluated for impairment:			4,033
Related Allowance			0
Average Recorded Investment
With an allowance recorded:	0	0
With no related allowance:	425	305
Total loans individually evaluated for impairment:	425	305
Interest Income Recognized
With an allowance recorded:	0	0
With no related allowance:	5	8
Total loans individually evaluated for impairment:	5	8
Municipal, consumer, and other
Unpaid Principal Balance
With an allowance recorded:			8,152
With no related allowance:			4,410
Total loans individually evaluated for impairment:			12,562
Recorded Investment
With an allowance recorded:			8,131
With no related allowance:			4,377
Total loans individually evaluated for impairment:			12,508
Related Allowance			$ 3,562
Average Recorded Investment
With an allowance recorded:	8,254	8,368
With no related allowance:	4,457	4,493
Total loans individually evaluated for impairment:	12,711	12,861
Interest Income Recognized
With an allowance recorded:	66	151
With no related allowance:	44	98
Total loans individually evaluated for impairment:	$ 110	$ 249

SECURITIES - Amortized cost and Fair values of securities with gross unrealized gains and losses (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Available-for-sale:
Amortized Cost	$ 854,796	$ 934,456
Gross Unrealized Gains	12	106
Gross Unrealized Losses	(101,645)	(91,038)
Allowance for Credit Losses	0
Fair Value	753,163	843,524
Held-to-maturity
Amortized Cost	527,144	541,600
Gross Unrealized Gains	6	195
Gross Unrealized Losses	(76,837)	(62,994)
Fair Value	450,313	478,801
Allowance for Credit Losses	0
U.S. Treasury
Available-for-sale:
Amortized Cost	169,751	169,860
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(15,357)	(15,345)
Allowance for Credit Losses	0
Fair Value	154,394	154,515
U.S. government agency
Available-for-sale:
Amortized Cost	55,483	59,291
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(4,768)	(4,134)
Allowance for Credit Losses	0
Fair Value	50,715	55,157
Held-to-maturity
Amortized Cost	88,442	88,424
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(12,392)	(9,728)
Fair Value	76,050	78,696
Allowance for Credit Losses	0
Municipal
Available-for-sale:
Amortized Cost	231,444	275,972
Gross Unrealized Gains	1	46
Gross Unrealized Losses	(36,244)	(32,189)
Allowance for Credit Losses	0
Fair Value	195,201	243,829
Held-to-maturity
Amortized Cost	39,344	42,167
Gross Unrealized Gains	6	195
Gross Unrealized Losses	(1,686)	(314)
Fair Value	37,664	42,048
Allowance for Credit Losses	0
Agency residential
Available-for-sale:
Amortized Cost	197,549	213,676
Gross Unrealized Gains	9	5
Gross Unrealized Losses	(20,508)	(18,240)
Allowance for Credit Losses	0
Fair Value	177,050	195,441
Held-to-maturity
Amortized Cost	98,115	102,728
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(9,281)	(6,470)
Fair Value	88,834	96,258
Allowance for Credit Losses	0
Agency commercial
Available-for-sale:
Amortized Cost	142,920	150,060
Gross Unrealized Gains	2	0
Gross Unrealized Losses	(18,593)	(17,172)
Allowance for Credit Losses	0
Fair Value	124,329	132,888
Held-to-maturity
Amortized Cost	301,243	308,281
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(53,478)	(46,482)
Fair Value	247,765	261,799
Allowance for Credit Losses	0
Corporate
Available-for-sale:
Amortized Cost	57,649	65,597
Gross Unrealized Gains	0	55
Gross Unrealized Losses	(6,175)	(3,958)
Allowance for Credit Losses	0
Fair Value	$ 51,474	$ 61,694

FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

Recurring Basis

The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Additional information on fair value measurements is summarized in Note 1 to the Company’s annual consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 8, 2023. There were no transfers between levels during the three and nine months ended September 30, 2023 and 2022. The Company’s policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria change and result in transfer between levels.

The following tables present the balances of the assets measured at fair value on a recurring basis:


	September 30, 2023
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Debt securities available-for-sale:
U.S. Treasury	$	154,394	$	—	$	—	$	154,394
U.S. government agency	—		50,715		—		50,715
Municipal	—		195,201		—		195,201
Mortgage-backed:
Agency residential	—		177,050		—		177,050
Agency commercial	—		124,329		—		124,329
Corporate	—		51,474		—		51,474
Equity securities with readily determinable fair values	3,106		—		—		3,106
Mortgage servicing rights	—		—		20,156		20,156
Derivative financial assets	—		10,188		—		10,188
Derivative financial liabilities	—		9,674		—		9,674


	December 31, 2022
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Debt securities available-for-sale:
U.S. Treasury	$	154,515	$	—	$	—	$	154,515
U.S. government agency	—		55,157		—		55,157
Municipal	—		243,829		—		243,829
Mortgage-backed:
Agency residential	—		195,441		—		195,441
Agency commercial	—		132,888		—		132,888
Corporate	—		61,694		—		61,694
Equity securities with readily determinable fair values	3,029		—		—		3,029
Mortgage servicing rights	—		—		10,147		10,147
Derivative financial assets	—		7,610		—		7,610
Derivative financial liabilities	—		6,981		—		6,981

The following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy. There were no changes to the valuation techniques from December 31, 2022 to September 30, 2023.

Investment Securities

When available, the Company uses quoted market prices to determine the fair value of securities; such items are classified in Level 1 of the fair value hierarchy. For the Company’s securities where quoted prices are not available for identical securities in an active market, the Company determines fair value utilizing vendors who apply matrix pricing for similar bonds where no price is observable or may compile prices from various sources. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace. Fair values from these models are verified, where possible, against quoted market prices for recent trading activity of assets with similar characteristics to the security being valued. Such methods are generally classified as Level 2; however, when prices from independent sources vary, cannot be obtained or cannot be corroborated, a security is generally classified as Level 3. The change in fair value of debt securities available-for-sale is recorded through an adjustment to the consolidated statement of comprehensive income (loss). The change in fair value of equity securities with readily determinable fair values is recorded through an adjustment to the consolidated statement of income.

Derivative Financial Instruments

Interest rate swap agreements are carried at fair value as determined by dealer valuation models. Based on the inputs used, the derivative financial instruments subjected to recurring fair value adjustments are classified as Level 2. For derivative financial instruments designated as hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of comprehensive income (loss). For derivative financial instruments not designated as hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of income.

Mortgage Servicing Rights

The Company has elected to record its mortgage servicing rights at fair value. Mortgage servicing rights do not trade in an active market with readily observable prices. Accordingly, the Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced as calculated by an independent third party. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds and discount rates. Due to the nature of the valuation inputs, mortgage servicing rights are classified as Level 3. The change in fair value is recorded through an adjustment to the consolidated statement of income.

The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands):

September 30, 2023

Fair Value

Valuation Technique

Unobservable Inputs

Range
(Weighted Average)

Mortgage servicing rights

20,156

Discounted cash flows

Constant pre-payment rates (CPR)

6.5% to 41.5% (8.2%)

Discount rate

9.0% to 45.9% (9.8%)

December 31, 2022

Fair Value

Valuation Technique

Unobservable Inputs

Range
(Weighted Average)

Mortgage servicing rights

10,147

Discounted cash flows

Constant pre-payment rates (CPR)

5.3% to 59.7% (8.2%)

Discount rate

9.0% to 11.7% (9.3%)

Nonrecurring Basis

Certain assets are measured at fair value on a nonrecurring basis. These assets are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as there is evidence of impairment or a change in the amount of previously recognized impairment.

The following tables present the balances of the assets measured at fair value on a nonrecurring basis:


	September 30, 2023
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Loans held for sale	$	—	$	3,563	$	—	$	3,563
Collateral-dependent loans	—		—		31,484		31,484
Bank premises held for sale	—		—		35		35
Foreclosed assets	—		—		1,519		1,519


	December 31, 2022
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Loans held for sale	$	—	$	615	$	—	$	615
Collateral-dependent loans	—		—		17,460		17,460
Bank premises held for sale	—		—		235		235
Foreclosed assets	—		—		3,030		3,030

Loans Held for Sale

Mortgage loans originated and held for sale are carried at the lower of cost or estimated fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically, these quotes include a premium on the sale and thus these quotes indicate fair value of the held for sale loans is greater than cost.

Collateral-Dependent Loans

In accordance with the provisions of the loan impairment guidance, impairment was measured for loans with respect to which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement. The fair value of collateral-dependent impaired loans is estimated based on the fair value of the underlying collateral supporting the loan. Collateral-dependent loans require classification in the fair value hierarchy. Impaired loans include loans acquired with deteriorated credit quality. Collateral values are estimated using Level 3 inputs based on customized discounting criteria.

Bank Premises Held for Sale

Bank premises held for sale are recorded at the lower of cost or fair value, less estimated selling costs, at the date classified as held for sale. Values are estimated using Level 3 inputs based on appraisals and customized discounting criteria. The carrying value of bank premises held for sale is not re-measured to fair value on a recurring basis but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs.

Foreclosed Assets

Foreclosed assets are recorded at fair value based on property appraisals, less estimated selling costs, at the date of the transfer. Subsequent to the transfer, foreclosed assets are carried at the lower of cost or fair value, less estimated selling costs. Values are estimated using Level 3 inputs based on appraisals and customized discounting criteria. The carrying value of foreclosed assets is not re-measured to fair value on a recurring basis but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs.

Collateral-Dependent Loans, Bank Premises Held for Sale, and Foreclosed Assets

The estimated fair value of collateral-dependent loans, bank premises held for sale, and foreclosed assets is based on the appraised fair value of the collateral, less estimated costs to sell. Collateral-dependent loans, bank premises held for sale, and foreclosed assets are classified within Level 3 of the fair value hierarchy.

The Company considers the appraisal or a similar evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals or a similar evaluation of the collateral underlying collateral-dependent loans and foreclosed assets are obtained at the time a loan is first considered impaired or a loan is transferred to foreclosed assets. Appraisals or a similar evaluation of bank premises held for sale are obtained when first classified as held for sale. Appraisals or similar evaluations are obtained subsequently as deemed necessary by management but at least annually on foreclosed assets and bank premises held for sale. Appraisals are reviewed for accuracy and consistency by management. Appraisals are performed by individuals selected from the list of approved appraisers maintained by management. The appraised values are reduced by estimated costs to sell. These discounts and estimates are developed by management by comparison to historical results.

The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands):

September 30, 2023

Fair
Value

Valuation
Technique

Unobservable Inputs

Range
(Weighted Average)

Collateral-dependent loans

31,484

Appraisal of collateral

Appraisal adjustments

Not meaningful

Bank premises held for sale

Appraisal

Appraisal adjustments

7% (7%)

Foreclosed assets

1,519

Appraisal

Appraisal adjustments

7% (7%)

December 31, 2022

Fair Value

Valuation Technique

Unobservable Inputs

Range

(Weighted Average)

Collateral-dependent loans

17,460

Appraisal of collateral

Appraisal adjustments

Not meaningful

Bank premises held for sale

235

Appraisal

Appraisal adjustments

7% (7%)

Foreclosed assets

3,030

Appraisal

Appraisal adjustments

7% (7%)

Other Fair Value Methods

The following methods and assumptions were used by the Company in estimating fair value disclosures of its other financial instruments. There were no changes in the methods and significant assumptions used to estimate the fair value of these financial instruments.

Cash and Cash Equivalents

The carrying amounts of these financial instruments approximate their fair values.

Restricted Stock

The carrying amount of FHLB stock approximates fair value based on the redemption provisions of the FHLB.

Loans

The fair value estimation process for the loan portfolio uses an exit price concept and reflects discounts the Company believes are consistent with discounts in the marketplace. Fair values are estimated for portfolios of loans with similar characteristics. Loans are segregated by type such as commercial and industrial, agricultural and farmland, commercial real estate - owner occupied, commercial real estate - non-owner occupied, multi-family, construction and land development, one-to-four family residential, and municipal, consumer, and other. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for similar maturities. The fair value analysis also includes other assumptions to estimate fair value, intended to approximate those a market participant would use in an orderly transaction, with adjustments for discount rates, interest rates, liquidity, and credit spreads, as appropriate.

Investments in Unconsolidated Subsidiaries

The fair values of the Company’s investments in unconsolidated subsidiaries are presumed to approximate carrying amounts.

Time Deposits

Fair values of certificates of deposit with stated maturities have been estimated using the present value of estimated future cash flows discounted at rates currently offered for similar instruments. Time deposits also include public funds time deposits.

Securities Sold Under Agreements to Repurchase

The fair values of repurchase agreements with variable interest rates are presumed to approximate their recorded carrying amounts.

Subordinated Notes

The fair values of subordinated notes are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions.

Junior Subordinated Debentures

The fair values of subordinated debentures are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions.

Accrued Interest

The carrying amounts of accrued interest approximate fair value.

Limitations

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair values have been estimated using data which management considered the best available and estimation methodologies deemed suitable for the pertinent category of financial instrument.

The following table provides summary information on the carrying amounts and estimated fair values of the Company’s financial instruments:


(dollars in thousands)	Fair Value Hierarchy Level	September 30, 2023				December 31, 2022
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value

Financial assets:
Cash and cash equivalents	Level 1	$	111,913	$	111,913	$	114,159	$	114,159
Debt securities held-to-maturity	Level 2	527,144		450,313		541,600		478,801
Restricted stock	Level 3	11,165		11,165		7,965		7,965
Loans, net	Level 3	3,303,923		3,252,850		2,594,920		2,566,930
Investments in unconsolidated subsidiaries	Level 3	1,614		1,614		1,165		1,165
Accrued interest receivable	Level 2	23,447		23,447		19,506		19,506

Financial liabilities:
Time deposits	Level 3	679,607		668,960		262,968		253,619
Securities sold under agreements to repurchase	Level 2	28,900		28,900		43,081		43,081
Subordinated notes	Level 3	39,454		36,852		39,395		37,205
Junior subordinated debentures	Level 3	52,774		43,600		37,780		37,030
Accrued interest payable	Level 2	3,707		3,707		1,363		1,363

The Company estimated the fair value of lending related commitments as described in Note 15 to be immaterial based on limited interest rate exposure due to their variable nature, short-term commitment periods and termination clauses provided in the agreements.

- Definition

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

+ References + Details

SECURITIES (Tables)

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of amortized cost and fair values of securities available-for-sale, with gross unrealized gains and losses

The amortized cost and fair values of debt securities, with gross unrealized gains and losses and allowance for credit losses, are as follows:


	September 30, 2023
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value

Available-for-sale:
U.S. Treasury	$	169,751	$	—	$	(15,357)	$	—	$	154,394
U.S. government agency	55,483		—		(4,768)		—		50,715
Municipal	231,444		1		(36,244)		—		195,201
Mortgage-backed:
Agency residential	197,549		9		(20,508)		—		177,050
Agency commercial	142,920		2		(18,593)		—		124,329
Corporate	57,649		—		(6,175)		—		51,474
Total available-for-sale	$	854,796	$	12	$	(101,645)	$	—	$	753,163

	September 30, 2023
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses

Held-to-maturity:
U.S. government agency	$	88,442	$	—	$	(12,392)	$	76,050	$	—
Municipal	39,344		6		(1,686)		37,664		—
Mortgage-backed:
Agency residential	98,115		—		(9,281)		88,834		—
Agency commercial	301,243		—		(53,478)		247,765		—
Total held-to-maturity	$	527,144	$	6	$	(76,837)	$	450,313	$	—


	December 31, 2022
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Available-for-sale:
U.S. Treasury	$	169,860	$	—	$	(15,345)	$	154,515
U.S. government agency	59,291		—		(4,134)		55,157
Municipal	275,972		46		(32,189)		243,829
Mortgage-backed:
Agency residential	213,676		5		(18,240)		195,441
Agency commercial	150,060		—		(17,172)		132,888
Corporate	65,597		55		(3,958)		61,694
Total available-for-sale	$	934,456	$	106	$	(91,038)	$	843,524

	December 31, 2022
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Held-to-maturity:
U.S. government agency	$	88,424	$	—	$	(9,728)	$	78,696
Municipal	42,167		195		(314)		42,048
Mortgage-backed:
Agency residential	102,728		—		(6,470)		96,258
Agency commercial	308,281		—		(46,482)		261,799
Total held-to-maturity	$	541,600	$	195	$	(62,994)	$	478,801

Schedule of certain debt securities from the available-for-sale category to the held-to-maturity category

The following is a summary of the amortized cost and fair value of securities transferred to the held-to-maturity category:


	March 31, 2022
(dollars in thousands)	Amortized Cost		Fair Value

U.S. government agency	$	78,841	$	71,048
Mortgage-backed:
Agency residential	8,175		7,651
Agency commercial	27,834		25,432
Total	$	114,850	$	104,131

Schedule of amortized cost and fair value of securities by contractual maturity


	Available-for-Sale				Held-to-Maturity
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value

Due in 1 year or less	$	34,149	$	33,546	$	2,643	$	2,634
Due after 1 year through 5 years	213,534		197,634		34,215		31,718
Due after 5 years through 10 years	217,279		180,780		85,250		74,459
Due after 10 years	49,365		39,824		5,678		4,903

Mortgage-backed:
Agency residential	197,549		177,050		98,115		88,834
Agency commercial	142,920		124,329		301,243		247,765
Total	$	854,796	$	753,163	$	527,144	$	450,313

Schedule of gross unrealized losses and fair value of investments


	September 30, 2023
	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
(dollars in thousands)	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value

Available-for-sale:
U.S. Treasury	$	—	$	—	$	(15,357)	$	154,394	$	(15,357)	$	154,394
U.S. government agency	(5)		1,380		(4,763)		49,298		(4,768)		50,678
Municipal	(282)		10,479		(35,962)		183,720		(36,244)		194,199
Mortgage-backed:
Agency residential	(725)		13,924		(19,783)		160,778		(20,508)		174,702
Agency commercial	(86)		3,645		(18,507)		120,593		(18,593)		124,238
Corporate	(443)		6,317		(5,732)		45,156		(6,175)		51,473
Total available-for-sale	$	(1,541)	$	35,745	$	(100,104)	$	713,939	$	(101,645)	$	749,684


	December 31, 2022
	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
(dollars in thousands)	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value

Available-for-sale:
U.S. Treasury	$	(8,401)	$	92,445	$	(6,944)	$	62,070	$	(15,345)	$	154,515
U.S. government agency	(2,980)		47,370		(1,154)		7,787		(4,134)		55,157
Municipal	(10,906)		149,261		(21,283)		87,794		(32,189)		237,055
Mortgage-backed:
Agency residential	(8,332)		127,288		(9,908)		65,692		(18,240)		192,980
Agency commercial	(4,764)		62,672		(12,408)		70,216		(17,172)		132,888
Corporate	(2,594)		52,190		(1,364)		5,600		(3,958)		57,790
Total available-for-sale	(37,977)		531,226		(53,061)		299,159		(91,038)		830,385
Held-to-maturity:
U.S. government agency	(1,754)		15,751		(7,974)		62,945		(9,728)		78,696
Municipal	(314)		23,433		—		—		(314)		23,433
Mortgage-backed:
Agency residential	(4,039)		78,452		(2,431)		17,806		(6,470)		96,258
Agency commercial	(16,716)		103,298		(29,766)		158,501		(46,482)		261,799
Total held-to-maturity	(22,823)		220,934		(40,171)		239,252		(62,994)		460,186
Total debt securities	$	(60,800)	$	752,160	$	(93,232)	$	538,411	$	(154,032)	$	1,290,571

Schedule of sales of debt securities

Sales of debt securities were as follows during the three and nine months ended September 30:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Proceeds from sales	$	39,436	$	—	$	185,280	$	—
Gross realized gains	—		—		—		—
Gross realized losses	(813)		—		(1,820)		—

Schedule of equity securities with initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses

The initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses are as follows:


	September 30, 2023
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value

Initial cost	$	3,142	$	2,603
Cumulative net unrealized gains (losses)	(36)		(303)
Carrying value	$	3,106	$	2,300


	December 31, 2022
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value

Initial cost	$	3,142	$	2,142
Cumulative net unrealized gains (losses)	(113)		(165)
Carrying value	$	3,029	$	1,977

Schedule of unrealized gains (losses) on equity securities

Unrealized gains (losses) on equity securities were as follows during the three and nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Readily determinable fair value	$	(46)	$	(107)	$	77	$	(447)
No readily determinable fair value	—		—		(138)		—
Unrealized gains (losses) on equity securities	$	(46)	$	(107)	$	(61)	$	(447)

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

DEPOSITS - Interest bearing Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
DEPOSITS
Noninterest-bearing	$ 1,086,877	$ 994,954
Interest-bearing demand	1,134,721	1,139,150
Money market	673,780	555,425
Savings	623,083	634,527
Time	679,607	262,968
Total interest-bearing deposits	3,111,191	2,592,070
Total deposits	$ 4,198,068	$ 3,587,024

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Gross Chargeoffs by Origination Year (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Term Loans by Origination Year
Gross write-offs, 2023	$ 141		$ 276
Gross write-offs, 2022	11		88
Gross write-offs 2021	0		0
Gross write-offs, 2020	0		9
Gross write-offs, 2019	0		1
Gross write-offs, prior	8		33
Revolving Loans	252		326
Revolving Loans Converted to Term	0		0
Total	412	$ 222	733	$ 515
Commercial and industrial
Term Loans by Origination Year
Gross write-offs, 2023	0		0
Gross write-offs, 2022	0		0
Gross write-offs 2021	0		0
Gross write-offs, 2020	0		0
Gross write-offs, 2019	0		0
Gross write-offs, prior	0		0
Revolving Loans	15		15
Revolving Loans Converted to Term	0		0
Total	15	17	15	22
Commercial real estate - owner occupied
Term Loans by Origination Year
Gross write-offs, 2023	0		0
Gross write-offs, 2022	2		5
Gross write-offs 2021	0		0
Gross write-offs, 2020	0		0
Gross write-offs, 2019	0		0
Gross write-offs, prior	0		0
Revolving Loans	0		0
Revolving Loans Converted to Term	0		0
Total	2	0	5	0
Commercial real estate - non-owner occupied
Term Loans by Origination Year
Gross write-offs, 2023	0		0
Gross write-offs, 2022	0		0
Gross write-offs 2021	0		0
Gross write-offs, 2020	0		0
Gross write-offs, 2019	0		0
Gross write-offs, prior	0		0
Revolving Loans	171		171
Revolving Loans Converted to Term	0		0
Total	171	0	171	0
Construction and land development
Term Loans by Origination Year
Gross write-offs, 2023	0		0
Gross write-offs, 2022	0		0
Gross write-offs 2021	0		0
Gross write-offs, 2020	0		0
Gross write-offs, 2019	0		0
Gross write-offs, prior	0		0
Revolving Loans	0		0
Revolving Loans Converted to Term	0		0
Total	0	0	0	0
Multi-family
Term Loans by Origination Year
Gross write-offs, 2023	0		0
Gross write-offs, 2022	0		0
Gross write-offs 2021	0		0
Gross write-offs, 2020	0		0
Gross write-offs, 2019	0		0
Gross write-offs, prior	0		0
Revolving Loans	0		0
Revolving Loans Converted to Term	0		0
Total	0	0	0	0
One-to-four family residential
Term Loans by Origination Year
Gross write-offs, 2023	0		0
Gross write-offs, 2022	0		0
Gross write-offs 2021	0		0
Gross write-offs, 2020	0		0
Gross write-offs, 2019	0		1
Gross write-offs, prior	8		33
Revolving Loans	0		0
Revolving Loans Converted to Term	0		0
Total	8	18	34	67
Agricultural and farmland
Term Loans by Origination Year
Gross write-offs, 2023	0		0
Gross write-offs, 2022	0		0
Gross write-offs 2021	0		0
Gross write-offs, 2020	0		0
Gross write-offs, 2019	0		0
Gross write-offs, prior	0		0
Revolving Loans	0		0
Revolving Loans Converted to Term	0		0
Total	0	0	0	0
Municipal, consumer, and other
Term Loans by Origination Year
Gross write-offs, 2023	141		276
Gross write-offs, 2022	9		83
Gross write-offs 2021	0		0
Gross write-offs, 2020	0		9
Gross write-offs, 2019	0		0
Gross write-offs, prior	0		0
Revolving Loans	66		140
Revolving Loans Converted to Term	0		0
Total	$ 216	$ 187	$ 508	$ 426

EARNINGS PER SHARE - computation of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net income	$ 19,715	$ 15,627	$ 47,396	$ 43,316
Earnings allocated to participating securities	(10)	(17)	(26)	(51)
Numerator for earnings per share - basic	19,705	15,610	47,370	43,265
Numerator for earnings per share - diluted	$ 19,705	$ 15,610	$ 47,370	$ 43,265
Denominator:
Weighted average shares of common stock outstanding (in shares)	31,829,250	28,787,662	31,598,650	28,887,757
Dilutive effect of outstanding restricted stock units (in shares)	137,187	72,643	102,574	56,761
Weighted average common shares outstanding, including all dilutive potential shares (in shares)	31,966,437	28,860,305	31,701,224	28,944,518
Earnings per share, basic (in dollars per share)	$ 0.62	$ 0.54	$ 1.50	$ 1.50
Earnings per share, diluted (in dollars per share)	$ 0.62	$ 0.54	$ 1.49	$ 1.49

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Categories of loans (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	$ 3,342,786		$ 2,620,253
Allowance for credit losses	(38,863)	$ (37,814)	(25,333)	$ (25,060)	$ (24,734)	$ (23,936)
Loans, net of allowance for credit losses	3,303,923		2,594,920
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	386,933		266,757
Allowance for credit losses	(4,249)	(3,735)	(3,279)	(2,984)	(2,981)	(2,440)
Commercial and industrial \| Paycheck Protection Program (PPP) Loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	18		28
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	297,242		218,503
Allowance for credit losses	(2,254)	(2,362)	(1,193)	(1,160)	(1,224)	(1,840)
Commercial real estate - non-owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	901,929		713,202
Allowance for credit losses	(7,630)	(7,538)	(6,721)	(6,882)	(6,611)	(8,145)
Construction and land development
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	371,158		360,824
Allowance for credit losses	(6,882)	(5,834)	(4,223)	(4,376)	(4,059)	(4,914)
Multi-family
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	388,742		287,865
Allowance for credit losses	(2,535)	(2,603)	(1,472)	(1,323)	(1,375)	(1,263)
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	488,655		338,253
Allowance for credit losses	(4,088)	(4,077)	(1,759)	(1,660)	(1,696)	(1,311)
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	275,239		237,746
Allowance for credit losses	(2,272)	(2,607)	(796)	(841)	(924)	(845)
Municipal, consumer, and other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	232,888		197,103
Allowance for credit losses	$ (8,953)	$ (9,058)	$ (5,890)	$ (5,834)	$ (5,864)	$ (3,178)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Sep. 30, 2023

AOCI Attributable to Parent [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents the activity and accumulated balances for components of other comprehensive income (loss):


	Unrealized Gains (Losses) on Debt Securities
(dollars in thousands)	Available-for-Sale		Held-to-Maturity		Derivatives		Total

Three Months Ended September 30, 2023
Balance, June 30, 2023	$	(61,560)	$	(9,256)	$	154	$	(70,662)
Other comprehensive income (loss) before reclassifications	(11,326)		—		58		(11,268)
Reclassifications	13		518		(131)		400
Other comprehensive income (loss), before tax	(11,313)		518		(73)		(10,868)
Income tax expense (benefit)	(3,224)		147		(21)		(3,098)
Other comprehensive income (loss), after tax	(8,089)		371		(52)		(7,770)
Balance, September 30, 2023	$	(69,649)	$	(8,885)	$	102	$	(78,432)

Three Months Ended September 30, 2022
Balance, June 30, 2022	$	(42,061)	$	(10,656)	$	(103)	$	(52,820)

Other comprehensive income (loss) before reclassifications	(35,358)		—		374		(34,984)
Reclassifications	—		504		14		518
Other comprehensive income (loss), before tax	(35,358)		504		388		(34,466)
Income tax expense (benefit)	(10,079)		144		111		(9,824)
Other comprehensive income (loss), after tax	(25,279)		360		277		(24,642)
Balance, September 30, 2022	$	(67,340)	$	(10,296)	$	174	$	(77,462)


	Unrealized Gains (Losses) on Debt Securities
(dollars in thousands)	Available-for-Sale		Held-to-Maturity		Derivatives		Total

Nine Months Ended September 30, 2023
Balance, December 31, 2022	$	(61,998)	$	(9,946)	$	185	$	(71,759)
Other comprehensive income (loss) before reclassifications	(12,521)		—		219		(12,302)
Reclassifications	1,820		1,483		(334)		2,969
Other comprehensive income (loss), before tax	(10,701)		1,483		(115)		(9,333)
Income tax expense (benefit)	(3,050)		422		(32)		(2,660)
Other comprehensive income (loss), after tax	(7,651)		1,061		(83)		(6,673)
Balance, September 30, 2023	$	(69,649)	$	(8,885)	$	102	$	(78,432)

Nine Months Ended September 30, 2022
Balance, December 31, 2021	$	5,736	$	(3,514)	$	(751)	$	1,471
Transfer from available-for-sale to held-to-maturity	7,664		(7,664)		—		—
Other comprehensive income (loss) before reclassifications	(112,931)		—		1,117		(111,814)
Reclassifications	—		1,234		177		1,411
Other comprehensive income (loss), before tax	(112,931)		1,234		1,294		(110,403)
Income tax expense (benefit)	(32,191)		352		369		(31,470)
Other comprehensive income (loss), after tax	(80,740)		882		925		(78,933)
Balance, September 30, 2022	$	(67,340)	$	(10,296)	$	174	$	(77,462)

Reclassifications from accumulated other comprehensive income (loss) for unrealized gains (losses) on debt securities available-for-sale are included in either gains (losses) on sales of securities or provision for credit losses in the accompanying consolidated statements of income.

Reclassifications from accumulated other comprehensive income (loss) for unrealized gains on debt securities held-to-maturity are included in securities interest income in the accompanying consolidated statements of income.

Reclassifications from accumulated other comprehensive income (loss) for the fair value of derivative financial instruments represent net interest payments received or made on derivatives designated as cash flow hedges. See Note 9 for additional information.

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Standby letters of credit
COMMITMENTS AND CONTINGENCIES
Financial instruments off-balance sheet credit risks	$ 23,689	$ 17,785
Commitments to extend credit
COMMITMENTS AND CONTINGENCIES
Financial instruments off-balance sheet credit risks	$ 881,943	$ 756,885

FORECLOSED ASSETS - Additional Information (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023 USD ($) loan	Dec. 31, 2022 USD ($) loan	Jun. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
FORECLOSED ASSETS
Carrying value of foreclosed asset	$ 1,519	$ 3,030	$ 3,080	$ 2,637	$ 2,891	$ 3,278
One-to-four family residential real estate property
FORECLOSED ASSETS
Carrying value of foreclosed asset	$ 600	$ 20
Number of loans in the process of foreclosure \| loan	14	4
Loan amount in the process of foreclosure	$ 1,200	$ 200

JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS - Carrying Values (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
SUBORDINATED NOTES
Junior subordinated debentures	$ 52,774	$ 37,780
Junior subordinated debentures
SUBORDINATED NOTES
Subordinated notes, at face value	53,714
Junior subordinated debentures	52,774	37,780
Junior subordinated debentures \| Heartland Bancorp, Inc. Capital Trust B
SUBORDINATED NOTES
Subordinated notes, at face value	10,310
Junior subordinated debentures	10,310	10,310
Junior subordinated debentures \| Heartland Bancorp, Inc. Capital Trust C
SUBORDINATED NOTES
Subordinated notes, at face value	10,310
Junior subordinated debentures	10,310	10,310
Junior subordinated debentures \| Heartland Bancorp, Inc. Capital Trust D
SUBORDINATED NOTES
Subordinated notes, at face value	5,155
Junior subordinated debentures	5,155	5,155
Junior subordinated debentures \| FFBI Capital Trust I
SUBORDINATED NOTES
Subordinated notes, at face value	7,217
Junior subordinated debentures	7,217	7,217
Junior subordinated debentures \| National Bancorp Statutory Trust I
SUBORDINATED NOTES
Subordinated notes, at face value	5,773
Junior subordinated debentures	4,837	4,788
Junior subordinated debentures \| Town and Country Statutory Trust II
SUBORDINATED NOTES
Subordinated notes, at face value	4,124
Junior subordinated debentures	4,407	0
Junior subordinated debentures \| Town and Country Statutory Trust III
SUBORDINATED NOTES
Subordinated notes, at face value	7,732
Junior subordinated debentures	7,575	0
Junior subordinated debentures \| West Plains Investors Statutory Trust I
SUBORDINATED NOTES
Subordinated notes, at face value	3,093
Junior subordinated debentures	$ 2,963	$ 0

DEPOSITS - Interest expense on Deposits (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Deposits [Abstract]
Interest-bearing demand	$ 761	$ 144	$ 1,902	$ 430
Money market	2,041	203	4,492	434
Savings	249	53	616	155
Time	4,160	187	6,898	643
Total interest expense on deposits	$ 7,211	$ 587	$ 13,908	$ 1,662

ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Impact of ASC 326 on the allowance for credit losses

The following table illustrates the impact of ASC 326 on the allowance for credit losses:


	January 1, 2023
(dollars in thousands)	Pre-ASC 326 Adoption		Impact of ASC 326 Adoption		As Reported under ASC 326

Assets:
Allowance for credit losses on loans
Commercial and industrial	$	3,279	$	(822)	$	2,457
Commercial real estate - owner occupied	1,193		587		1,780
Commercial real estate - non-owner occupied	6,721		501		7,222
Construction and land development	4,223		1,969		6,192
Multi-family	1,472		85		1,557
One-to-four family residential	1,759		797		2,556
Agricultural and farmland	796		1,567		2,363
Municipal, consumer, and other	5,890		2,299		8,189
Allowance for credit losses on loans	$	25,333	$	6,983	$	32,316

Liabilities:
Allowance for credit losses on unfunded commitments	$	—	$	2,899	$	2,899

ACQUISITIONS - Acquisition-related expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Business Acquisition [Line Items]
Furniture and equipment	$ 667	$ 668	$ 2,135	$ 1,843
Marketing and customer relations	1,679	880	3,874	2,936
Total noninterest expense	30,671	23,998	100,577	71,997
Town and Country
Business Acquisition [Line Items]
PROVISION FOR CREDIT LOSSES	0	0	5,924	0
Salaries	0	0	3,584	0
Furniture and equipment	0	0	39	0
Data processing	0	0	2,031	0
Marketing and customer relations	0	0	24	0
Loan collection and servicing	0	0	125	0
Legal fees and other noninterest expense	0	462	1,964	462
Total noninterest expense	0	462	7,767	462
Total acquisition-related expenses	$ 0	$ 462	$ 13,691	$ 462

ACQUISITIONS (Tables)

9 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of expenses incurred related to the acquisition

During the three and nine months ended September 30, 2023 and 2022, HBT Financial incurred the following expenses related to the acquisition of Town and Country:


	Three Months Ended				Nine Months Ended
(dollars in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022

PROVISION FOR CREDIT LOSSES	$	—	$	—	$	5,924	$	—
NONINTEREST EXPENSE
Salaries	—		—		3,584		—


Furniture and equipment	—		—		39		—
Data processing	—		—		2,031		—
Marketing and customer relations	—		—		24		—


Loan collection and servicing	—		—		125		—

Legal fees and other noninterest expense	—		462		1,964		462
Total noninterest expense	—		462		7,767		462
Total acquisition-related expenses	$	—	$	462	$	13,691	$	462

Schedule of recognized identified assets acquired and liabilities assumed

The fair value of the assets acquired and liabilities assumed from Town and Country on the acquisition date of February 1, 2023 were as follows (dollars in thousands):


	Fair Value
Assets acquired:
Cash and cash equivalents	$	23,542
Interest-bearing time deposits with banks	249
Debt securities	167,869
Equity securities	90
Restricted stock	2,822
Loans held for sale	1,612

Loans, before allowance for credit losses	635,376
Allowance for credit losses	(1,247)
Loans, net of allowance for credit losses	634,129

Bank owned life insurance	15,782
Bank premises and equipment	14,828
Foreclosed assets	271
Intangible assets	22,282
Mortgage servicing rights	10,469
Investments in unconsolidated subsidiaries	449
Accrued interest receivable	3,113
Other assets	9,151
Total assets acquired	906,658

Liabilities assumed:
Deposits	720,417
FHLB advances	86,439
Junior subordinated debentures	14,949
Other liabilities	5,999
Total liabilities assumed	827,804
Net assets acquired	$	78,854

Consideration paid:
Cash	$	37,996
Common stock	71,356
Total consideration paid	$	109,352

Goodwill	$	30,498

Schedule of the components of the purchase price of financing receivables purchased with credit deterioration

The following table provides a summary of these PCD loans at acquisition (dollars in thousands):


Unpaid principal balance	$	89,822
Allowance for credit losses at acquisition	(1,247)
Non-credit discount	(2,218)
Purchase price	$	86,357

Business acquisition, pro forma information

The acquisition-related expenses that have been recognized are included in net income in the following table.


	Pro Forma				Pro Forma
	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands, except per share data)	2023		2022		2023		2022
Total revenues (net interest income and noninterest income)	$	57,459	$	56,902	$	174,015	$	164,845
Net income	19,497		18,207		47,697		52,617
Earnings per share - basic	0.61		0.57		1.49		1.63
Earnings per share - diluted	0.61		0.56		1.49		1.63

SECURITIES - Investments in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Unrealized Loss
Less than 12 Months	$ (1,541)	$ (37,977)
12 Months or More	(100,104)	(53,061)
Total	(101,645)	(91,038)
Fair Value
Less than 12 Months	35,745	531,226
12 Months or More	713,939	299,159
Total	749,684	830,385
Unrealized Loss
Less than 12 Months		(22,823)
12 Months or More		(40,171)
Total		(62,994)
Fair Value
Less than 12 Months		220,934
12 Months or More		239,252
Total		460,186
Unrealized Loss
Less than 12 Months		(60,800)
12 Months or More		(93,232)
Total		(154,032)
Fair Value
Less than 12 Months		752,160
12 Months or More		538,411
Total		1,290,571
U.S. Treasury
Unrealized Loss
Less than 12 Months	0	(8,401)
12 Months or More	(15,357)	(6,944)
Total	(15,357)	(15,345)
Fair Value
Less than 12 Months	0	92,445
12 Months or More	154,394	62,070
Total	154,394	154,515
U.S. government agency
Unrealized Loss
Less than 12 Months	(5)	(2,980)
12 Months or More	(4,763)	(1,154)
Total	(4,768)	(4,134)
Fair Value
Less than 12 Months	1,380	47,370
12 Months or More	49,298	7,787
Total	50,678	55,157
Unrealized Loss
Less than 12 Months		(1,754)
12 Months or More		(7,974)
Total		(9,728)
Fair Value
Less than 12 Months		15,751
12 Months or More		62,945
Total		78,696
Municipal
Unrealized Loss
Less than 12 Months	(282)	(10,906)
12 Months or More	(35,962)	(21,283)
Total	(36,244)	(32,189)
Fair Value
Less than 12 Months	10,479	149,261
12 Months or More	183,720	87,794
Total	194,199	237,055
Unrealized Loss
Less than 12 Months		(314)
12 Months or More		0
Total		(314)
Fair Value
Less than 12 Months		23,433
12 Months or More		0
Total		23,433
Agency residential
Unrealized Loss
Less than 12 Months	(725)	(8,332)
12 Months or More	(19,783)	(9,908)
Total	(20,508)	(18,240)
Fair Value
Less than 12 Months	13,924	127,288
12 Months or More	160,778	65,692
Total	174,702	192,980
Unrealized Loss
Less than 12 Months		(4,039)
12 Months or More		(2,431)
Total		(6,470)
Fair Value
Less than 12 Months		78,452
12 Months or More		17,806
Total		96,258
Agency commercial
Unrealized Loss
Less than 12 Months	(86)	(4,764)
12 Months or More	(18,507)	(12,408)
Total	(18,593)	(17,172)
Fair Value
Less than 12 Months	3,645	62,672
12 Months or More	120,593	70,216
Total	124,238	132,888
Unrealized Loss
Less than 12 Months		(16,716)
12 Months or More		(29,766)
Total		(46,482)
Fair Value
Less than 12 Months		103,298
12 Months or More		158,501
Total		261,799
Corporate
Unrealized Loss
Less than 12 Months	(443)	(2,594)
12 Months or More	(5,732)	(1,364)
Total	(6,175)	(3,958)
Fair Value
Less than 12 Months	6,317	52,190
12 Months or More	45,156	5,600
Total	$ 51,473	$ 57,790

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Sep. 30, 2023

AOCI Attributable to Parent [Abstract]

Schedule of the activity and accumulated balances for components of other comprehensive income (loss)

The following table presents the activity and accumulated balances for components of other comprehensive income (loss):


	Unrealized Gains (Losses) on Debt Securities
(dollars in thousands)	Available-for-Sale		Held-to-Maturity		Derivatives		Total

Three Months Ended September 30, 2023
Balance, June 30, 2023	$	(61,560)	$	(9,256)	$	154	$	(70,662)
Other comprehensive income (loss) before reclassifications	(11,326)		—		58		(11,268)
Reclassifications	13		518		(131)		400
Other comprehensive income (loss), before tax	(11,313)		518		(73)		(10,868)
Income tax expense (benefit)	(3,224)		147		(21)		(3,098)
Other comprehensive income (loss), after tax	(8,089)		371		(52)		(7,770)
Balance, September 30, 2023	$	(69,649)	$	(8,885)	$	102	$	(78,432)

Three Months Ended September 30, 2022
Balance, June 30, 2022	$	(42,061)	$	(10,656)	$	(103)	$	(52,820)

Other comprehensive income (loss) before reclassifications	(35,358)		—		374		(34,984)
Reclassifications	—		504		14		518
Other comprehensive income (loss), before tax	(35,358)		504		388		(34,466)
Income tax expense (benefit)	(10,079)		144		111		(9,824)
Other comprehensive income (loss), after tax	(25,279)		360		277		(24,642)
Balance, September 30, 2022	$	(67,340)	$	(10,296)	$	174	$	(77,462)


	Unrealized Gains (Losses) on Debt Securities
(dollars in thousands)	Available-for-Sale		Held-to-Maturity		Derivatives		Total

Nine Months Ended September 30, 2023
Balance, December 31, 2022	$	(61,998)	$	(9,946)	$	185	$	(71,759)
Other comprehensive income (loss) before reclassifications	(12,521)		—		219		(12,302)
Reclassifications	1,820		1,483		(334)		2,969
Other comprehensive income (loss), before tax	(10,701)		1,483		(115)		(9,333)
Income tax expense (benefit)	(3,050)		422		(32)		(2,660)
Other comprehensive income (loss), after tax	(7,651)		1,061		(83)		(6,673)
Balance, September 30, 2023	$	(69,649)	$	(8,885)	$	102	$	(78,432)

Nine Months Ended September 30, 2022
Balance, December 31, 2021	$	5,736	$	(3,514)	$	(751)	$	1,471
Transfer from available-for-sale to held-to-maturity	7,664		(7,664)		—		—
Other comprehensive income (loss) before reclassifications	(112,931)		—		1,117		(111,814)
Reclassifications	—		1,234		177		1,411
Other comprehensive income (loss), before tax	(112,931)		1,234		1,294		(110,403)
Income tax expense (benefit)	(32,191)		352		369		(31,470)
Other comprehensive income (loss), after tax	(80,740)		882		925		(78,933)
Balance, September 30, 2022	$	(67,340)	$	(10,296)	$	174	$	(77,462)

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Recorded investments in loans and the allowance for loan losses (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Loan balances:
Collectively evaluated for impairment	$ 3,306,710		$ 2,527,562
Individually evaluated for impairment	36,076		71,715
Acquired with deteriorated credit quality	17,000
Total	3,342,786		2,620,253
Allowance for loan losses:
Collectively evaluated for impairment	34,271		18,984
Individually evaluated for impairment	4,592		6,320
Allowance for Credit Losses	38,863	$ 37,814	25,333	$ 25,060	$ 24,734	$ 23,936
Acquired with deteriorated credit quality
Loan balances:
Acquired with deteriorated credit quality			20,976
Allowance for loan losses:
Allowance for Credit Losses			29
Commercial and industrial
Loan balances:
Collectively evaluated for impairment	386,763		261,833
Individually evaluated for impairment	170		4,818
Total	386,933		266,757
Allowance for loan losses:
Collectively evaluated for impairment	4,244		3,121
Individually evaluated for impairment	5		158
Allowance for Credit Losses	4,249	3,735	3,279	2,984	2,981	2,440
Commercial and industrial \| Acquired with deteriorated credit quality
Loan balances:
Acquired with deteriorated credit quality			106
Allowance for loan losses:
Allowance for Credit Losses			0
Commercial real estate - owner occupied
Loan balances:
Collectively evaluated for impairment	297,068		203,558
Individually evaluated for impairment	174		11,366
Total	297,242		218,503
Allowance for loan losses:
Collectively evaluated for impairment	2,254		1,008
Individually evaluated for impairment	0		168
Allowance for Credit Losses	2,254	2,362	1,193	1,160	1,224	1,840
Commercial real estate - owner occupied \| Acquired with deteriorated credit quality
Loan balances:
Acquired with deteriorated credit quality			3,579
Allowance for loan losses:
Allowance for Credit Losses			17
Commercial real estate - non-owner occupied
Loan balances:
Collectively evaluated for impairment	888,068		671,663
Individually evaluated for impairment	13,861		30,509
Total	901,929		713,202
Allowance for loan losses:
Collectively evaluated for impairment	6,503		4,332
Individually evaluated for impairment	1,127		2,388
Allowance for Credit Losses	7,630	7,538	6,721	6,882	6,611	8,145
Commercial real estate - non-owner occupied \| Acquired with deteriorated credit quality
Loan balances:
Acquired with deteriorated credit quality			11,030
Allowance for loan losses:
Allowance for Credit Losses			1
Construction and land development
Loan balances:
Collectively evaluated for impairment	370,942		359,892
Individually evaluated for impairment	216		82
Total	371,158		360,824
Allowance for loan losses:
Collectively evaluated for impairment	6,882		4,221
Individually evaluated for impairment	0		0
Allowance for Credit Losses	6,882	5,834	4,223	4,376	4,059	4,914
Construction and land development \| Acquired with deteriorated credit quality
Loan balances:
Acquired with deteriorated credit quality			850
Allowance for loan losses:
Allowance for Credit Losses			2
Multi-family
Loan balances:
Collectively evaluated for impairment	388,282		287,298
Individually evaluated for impairment	460		0
Total	388,742		287,865
Allowance for loan losses:
Collectively evaluated for impairment	2,535		1,470
Individually evaluated for impairment	0		0
Allowance for Credit Losses	2,535	2,603	1,472	1,323	1,375	1,263
Multi-family \| Acquired with deteriorated credit quality
Loan balances:
Acquired with deteriorated credit quality			567
Allowance for loan losses:
Allowance for Credit Losses			2
One-to-four family residential
Loan balances:
Collectively evaluated for impairment	482,838		325,621
Individually evaluated for impairment	5,817		8,399
Total	488,655		338,253
Allowance for loan losses:
Collectively evaluated for impairment	3,737		1,709
Individually evaluated for impairment	351		44
Allowance for Credit Losses	4,088	4,077	1,759	1,660	1,696	1,311
One-to-four family residential \| Acquired with deteriorated credit quality
Loan balances:
Acquired with deteriorated credit quality			4,233
Allowance for loan losses:
Allowance for Credit Losses			6
Agricultural and farmland
Loan balances:
Collectively evaluated for impairment	275,111		233,118
Individually evaluated for impairment	128		4,033
Total	275,239		237,746
Allowance for loan losses:
Collectively evaluated for impairment	2,272		796
Individually evaluated for impairment	0		0
Allowance for Credit Losses	2,272	2,607	796	841	924	845
Agricultural and farmland \| Acquired with deteriorated credit quality
Loan balances:
Acquired with deteriorated credit quality			595
Allowance for loan losses:
Allowance for Credit Losses			0
Municipal, consumer, and other
Loan balances:
Collectively evaluated for impairment	217,638		184,579
Individually evaluated for impairment	15,250		12,508
Total	232,888		197,103
Allowance for loan losses:
Collectively evaluated for impairment	5,844		2,327
Individually evaluated for impairment	3,109		3,562
Allowance for Credit Losses	$ 8,953	$ 9,058	5,890	$ 5,834	$ 5,864	$ 3,178
Municipal, consumer, and other \| Acquired with deteriorated credit quality
Loan balances:
Acquired with deteriorated credit quality			16
Allowance for loan losses:
Allowance for Credit Losses			$ 1

SECURITIES - Sale of debt securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales	$ 39,436	$ 0	$ 185,280	$ 0
Gross realized gains	0	0	0	0
Gross realized losses	$ (813)	$ 0	$ (1,820)	$ 0

DEPOSITS - Interest bearing Deposits - Narrative (Detail) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
DEPOSITS
Brokered deposits		$ 0
Reciprocal transaction deposits, Interest bearing demand deposits	$ 38,700,000
Reciprocal transaction deposits, Money market deposits	12,800,000	1,700,000
Reciprocal transaction deposits, Time deposits	35,500,000	1,600,000
Time deposits, at or above FDIC insurance limit	115,900,000	27,200,000
Time deposits in denominations of $100,000 or more	302,300,000	$ 92,600,000
Bank Time Deposits
DEPOSITS
Brokered deposits	$ 115,000,000

JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS - Interest rate and maturities (Details)	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Heartland Bancorp, Inc. Capital Trust B
SUBORDINATED NOTES
Spread on interest rate basis	3.01%
Interest Rate	8.32%	6.83%
Heartland Bancorp, Inc. Capital Trust C
SUBORDINATED NOTES
Spread on interest rate basis	1.79%
Interest Rate	7.20%	6.30%
Heartland Bancorp, Inc. Capital Trust D
SUBORDINATED NOTES
Spread on interest rate basis	1.61%
Interest Rate	7.02%	6.12%
FFBI Capital Trust I
SUBORDINATED NOTES
Spread on interest rate basis	3.06%
Interest Rate	8.37%	6.88%
National Bancorp Statutory Trust I
SUBORDINATED NOTES
Spread on interest rate basis	3.16%
Interest Rate	8.57%	7.67%
Town and Country Statutory Trust II
SUBORDINATED NOTES
Spread on interest rate basis	3.05%
Interest Rate	8.46%
Town and Country Statutory Trust III
SUBORDINATED NOTES
Spread on interest rate basis	1.94%
Interest Rate	7.35%
West Plains Investors Statutory Trust I
SUBORDINATED NOTES
Spread on interest rate basis	1.71%
Interest Rate	7.12%

ACQUISITIONS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Feb. 01, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill		$ 59,820		$ 59,820		$ 29,322
Town and Country
Business Acquisition [Line Items]
Percentage of voting interests acquired	100.00%
Stock consideration per share (shares per share)	1.9010
Cash consideration per share (in dollars per share)	$ 35.66
Stock consideration (number of shares)	3,378,600
Cash consideration	$ 37,996
Share price (in dollars per share)	$ 21.12
Total consideration	$ 109,352
Maximum period for refinement of fair values from closing date				1 year
Adjustment, income tax assets and liabilities		100
Goodwill	$ 30,498
Acquisition-related expenses, total		$ 0	$ 462	$ 13,691	$ 462

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
NET INCOME	$ 19,715	$ 15,627	$ 47,396	$ 43,316

- Definition

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

+ References

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

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 323
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481687/323-10-50-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 28
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-28

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482765/220-10-50-6

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-3

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480175/815-40-65-1

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-8

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-9

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-11

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483443/250-10-50-4

Reference 13: http://www.xbrl.org/2003/role/exampleRef
-Topic 946
-SubTopic 830
-Name Accounting Standards Codification
-Section 55
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480167/946-830-55-10

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section 45
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483581/946-220-45-7

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.6-07(9))
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-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.6-09(1)(d))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-3

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1A

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480097/470-10-S99-1B

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Topic 260
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 60B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482689/260-10-45-60B

Reference 32: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Topic 205
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483499/205-20-50-7

Reference 35: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 230
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 28
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482740/230-10-45-28

Reference 36: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1A

Reference 37: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1B

Reference 38: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
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Reference 39: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

ACQUISITIONS - Assets Acquired and Liabilities (Details) - USD ($) $ in Thousands	Feb. 01, 2023	Sep. 30, 2023	Dec. 31, 2022
Consideration paid:
Goodwill		$ 59,820	$ 29,322
Town and Country
Assets acquired:
Cash and cash equivalents	$ 23,542
Interest-bearing time deposits with banks	249
Debt securities	167,869
Equity securities	90
Restricted stock	2,822
Loans held for sale	1,612
Loans, before allowance for credit losses	635,376
Allowance for credit losses	(1,247)
Loans, net of allowance for credit losses	634,129
Bank owned life insurance	15,782
Bank premises and equipment	14,828
Foreclosed assets	271
Intangible assets	22,282
Mortgage servicing rights	10,469
Investments in unconsolidated subsidiaries	449
Accrued interest receivable	3,113
Other assets	9,151
Total assets acquired	906,658
Liabilities assumed:
Deposits	720,417
FHLB advances	86,439
Junior subordinated debentures	14,949
Other liabilities	5,999
Total liabilities assumed	827,804
Net assets acquired	78,854
Consideration paid:
Cash	37,996
Common stock	71,356
Total consideration paid	109,352
Goodwill	$ 30,498

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Loans, including fees:
Taxable	$ 49,640	$ 29,855	$ 138,948	$ 84,504
Federally tax exempt	1,072	842	3,064	2,183
Securities:
Taxable	6,451	6,635	19,585	16,947
Federally tax exempt	978	1,207	3,337	3,385
Interest-bearing deposits in bank	714	458	2,234	1,037
Other interest and dividend income	186	17	420	50
Total interest and dividend income	59,041	39,014	167,588	108,106
INTEREST EXPENSE
Deposits	7,211	587	13,908	1,662
Securities sold under agreements to repurchase	35	9	107	26
Borrowings	2,108	85	5,594	87
Subordinated notes	470	470	1,409	1,409
Junior subordinated debentures issued to capital trusts	938	473	2,582	1,231
Total interest expense	10,762	1,624	23,600	4,415
Net interest income	48,279	37,390	143,988	103,691
PROVISION FOR CREDIT LOSSES	480	386	6,460	(53)
Net interest income after provision for credit losses	47,799	37,004	137,528	103,744
NONINTEREST INCOME
Mortgage servicing	1,169	697	3,522	2,016
Mortgage servicing rights fair value adjustment	23	351	(460)	2,446
Gains on sale of mortgage loans	476	354	1,125	1,267
Realized gains (losses) on sales of securities	(813)	0	(1,820)	0
Unrealized gains (losses) on equity securities	(46)	(107)	(61)	(447)
Gains (losses) on foreclosed assets	550	(225)	443	(192)
Gains (losses) on other assets	52	(31)	161	119
Income on bank owned life insurance	153	41	415	122
Other noninterest income	742	599	2,362	1,769
Total noninterest income	9,490	8,234	26,841	26,828
NONINTEREST EXPENSE
Salaries	15,644	12,752	51,715	38,489
Employee benefits	2,616	1,771	7,658	6,199
Occupancy of bank premises	2,573	1,979	7,460	5,780
Furniture and equipment	667	668	2,135	1,843
Data processing	2,581	1,631	9,787	5,274
Marketing and customer relations	1,679	880	3,874	2,936
Amortization of intangible assets	720	243	1,950	733
FDIC insurance	512	302	1,705	888
Loan collection and servicing	345	336	971	771
Foreclosed assets	76	97	234	260
Other noninterest expense	3,258	3,339	13,088	8,824
Total noninterest expense	30,671	23,998	100,577	71,997
INCOME BEFORE INCOME TAX EXPENSE	26,618	21,240	63,792	58,575
INCOME TAX EXPENSE	6,903	5,613	16,396	15,259
NET INCOME	$ 19,715	$ 15,627	$ 47,396	$ 43,316
Earnings per share, basic (in dollars per share)	$ 0.62	$ 0.54	$ 1.50	$ 1.50
Earnings per share, diluted (in dollars per share)	$ 0.62	$ 0.54	$ 1.49	$ 1.49
Weighted average shares of common stock outstanding (in shares)	31,829,250	28,787,662	31,598,650	28,887,757
Card income
NONINTEREST INCOME
Revenue	$ 2,763	$ 2,569	$ 8,326	$ 7,687
Wealth management fees
NONINTEREST INCOME
Revenue	2,381	2,059	6,998	6,670
Service charges on deposit accounts
NONINTEREST INCOME
Revenue	$ 2,040	$ 1,927	$ 5,830	$ 5,371

COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of commitments and conditional obligations

Such commitments and conditional obligations were as follows:


	Contractual Amount
(dollars in thousands)	September 30, 2023		December 31, 2022

Commitments to extend credit	$	881,943	$	756,885
Standby letters of credit	23,689		17,785

DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash pledged	$ 0.6	$ 0.6

- Definition

Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Excludes cash and cash equivalents within disposal group and discontinued operation.

+ References + Details

FAIR VALUE OF FINANCIAL INSTRUMENTS - Unobservable inputs used in nonrecurring measurements (Details) - Fair Value, Nonrecurring - Level 3 - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Collateral-dependent loans \| Appraisal of collateral
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 31,484	$ 17,460
Alternative Investment, Measurement Input [Extensible Enumeration]	AppraisalAdjustmentsMember	AppraisalAdjustmentsMember
Bank premises held for sale \| Appraisal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 35	$ 235
Measurement input	7.00%	7.00%
Alternative Investment, Measurement Input [Extensible Enumeration]	AppraisalAdjustmentsMember	AppraisalAdjustmentsMember
Bank premises held for sale \| Appraisal \| Weighted Average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	(7.00%)	(7.00%)
Foreclosed assets \| Appraisal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 1,519	$ 3,030
Measurement input	7.00%	7.00%
Alternative Investment, Measurement Input [Extensible Enumeration]	AppraisalAdjustmentsMember	AppraisalAdjustmentsMember
Foreclosed assets \| Appraisal \| Weighted Average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	(7.00%)	(7.00%)

FORECLOSED ASSETS

9 Months Ended

Sep. 30, 2023

Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract]

Foreclosed Assets

FORECLOSED ASSETS

Foreclosed assets activity is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Beginning balance	$	3,080	$	2,891	$	3,030	$	3,278
Acquired	—		—		271		—
Transfers from loans	879		—		1,049		27

Proceeds from sales	(2,990)		(29)		(3,274)		(476)

Net gain on sales	564		20		632		118
Direct write-downs	(14)		(245)		(189)		(310)
Ending balance	$	1,519	$	2,637	$	1,519	$	2,637

Gains (losses) on foreclosed assets includes the following:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Direct write-downs	$	(14)	$	(245)	$	(189)	$	(310)
Net gain on sales	564		20		632		118
Gains (losses) on foreclosed assets	$	550	$	(225)	$	443	$	(192)

The carrying value of foreclosed one-to-four family residential real estate properties held was $0.6 million and $20 thousand as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023, there were 14 one-to-four family residential real estate loans in the process of foreclosure totaling $1.2 million. As of December 31, 2022, there were 4 one-to-four family residential real estate loans in the process of foreclosure totaling $0.2 million.

DERIVATIVE FINANCIAL INSTRUMENTS - Interest rate contracts designated as cash flow hedges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Cash Flow Hedging \| Interest Expense
DERIVATIVE FINANCIAL INSTRUMENTS
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income (loss)	$ 131	$ (14)	$ 334	$ (177)

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of fair values of Company's derivative instrument assets and liabilities related to interest rate swap contracts

The interest rate swap agreements designated as cash flow hedges are summarized as follows:


	September 30, 2023				December 31, 2022
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value

Fair value recorded in other assets	$	17,000	$	514	$	17,000	$	629

Schedule of the effect of interest rate contracts designated as cash flow hedges on the consolidated statements of income

The effect of interest rate swap agreements designated as cash flow hedges on the consolidated statements of income are summarized as follows:


Location of gross gain (loss) reclassified from accumulated other comprehensive income (loss) to income	Amounts of gross gain (loss) reclassified from accumulated other comprehensive income (loss)
	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Designated as cash flow hedges:
Junior subordinated debentures interest expense	$	131	$	(14)	$	334	$	(177)

Summary of interest rate swap agreements not designated as hedging instruments

The interest rate swap agreements not designated as hedging instruments are summarized as follows:


	September 30, 2023				December 31, 2022
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value

Fair value recorded in other assets:
Interest rate swaps with a commercial borrower counterparty	$	—	$	—	$	—	$	—
Interest rate swaps with a financial institution counterparty	101,612		9,674		106,995		6,981
Total fair value recorded in other assets	$	101,612	$	9,674	$	106,995	$	6,981

Fair value recorded in other liabilities:
Interest rate swaps with a commercial borrower counterparty	$	101,612	$	(9,674)	$	106,995	$	(6,981)
Interest rate swaps with a financial institution counterparty	—		—		—		—
Total fair value recorded in other liabilities	$	101,612	$	(9,674)	$	106,995	$	(6,981)

Summary of the effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income

The effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income on the consolidated statements of income are summarized as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022

Not designated as hedging instruments:
Gross gains	$	2,510	$	5,209	$	6,950	$	15,303
Gross losses	(2,510)		(5,209)		(6,950)		(15,303)
Net gains (losses)	$	—	$	—	$	—	$	—

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Past Due Status (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	$ 3,342,786,000	$ 2,620,253,000
Nonaccrual	6,678,000	2,155,000
Internal review threshold	750,000
Accruing Interest \| Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	3,331,658,000	2,616,606,000
Accruing Interest \| 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	4,450,000	1,346,000
Accruing Interest \| 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	146,000
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	386,933,000	266,757,000
Nonaccrual	170,000	219,000
Commercial and industrial \| Accruing Interest \| Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	386,383,000	266,521,000
Commercial and industrial \| Accruing Interest \| 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	380,000	17,000
Commercial and industrial \| Accruing Interest \| 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	297,242,000	218,503,000
Nonaccrual	173,000	74,000
Commercial real estate - owner occupied \| Accruing Interest \| Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	297,069,000	218,242,000
Commercial real estate - owner occupied \| Accruing Interest \| 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	187,000
Commercial real estate - owner occupied \| Accruing Interest \| 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Commercial real estate - non-owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	901,929,000	713,202,000
Nonaccrual	266,000	171,000
Commercial real estate - non-owner occupied \| Accruing Interest \| Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	900,058,000	713,031,000
Commercial real estate - non-owner occupied \| Accruing Interest \| 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	1,605,000	0
Commercial real estate - non-owner occupied \| Accruing Interest \| 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Construction and land development
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	371,158,000	360,824,000
Nonaccrual	216,000	0
Construction and land development \| Accruing Interest \| Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	370,922,000	360,763,000
Construction and land development \| Accruing Interest \| 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	20,000	61,000
Construction and land development \| Accruing Interest \| 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Multi-family
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	388,742,000	287,865,000
Nonaccrual	460,000	0
Multi-family \| Accruing Interest \| Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	387,966,000	287,854,000
Multi-family \| Accruing Interest \| 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	316,000	11,000
Multi-family \| Accruing Interest \| 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	488,655,000	338,253,000
Nonaccrual	5,155,000	1,638,000
One-to-four family residential \| Accruing Interest \| Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	481,603,000	335,576,000
One-to-four family residential \| Accruing Interest \| 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	1,897,000	894,000
One-to-four family residential \| Accruing Interest \| 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	145,000
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	275,239,000	237,746,000
Nonaccrual	128,000	0
Agricultural and farmland \| Accruing Interest \| Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	275,096,000	237,727,000
Agricultural and farmland \| Accruing Interest \| 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	15,000	19,000
Agricultural and farmland \| Accruing Interest \| 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Municipal, consumer, and other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	232,888,000	197,103,000
Nonaccrual	110,000	53,000
Municipal, consumer, and other \| Accruing Interest \| Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	232,561,000	196,892,000
Municipal, consumer, and other \| Accruing Interest \| 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	217,000	157,000
Municipal, consumer, and other \| Accruing Interest \| 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	$ 0	$ 1,000

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Loans risk-rated by origination year (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	$ 584,946
2022	801,577
2021	662,240
2020	369,941
2019	221,098
Prior	290,685
Revolving Loans	382,694
Revolving Loans Converted to Term	29,605
Total	3,342,786	$ 2,620,253
Pass
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	562,691
2022	783,615
2021	645,616
2020	354,629
2019	206,642
Prior	241,263
Revolving Loans	365,176
Revolving Loans Converted to Term	24,533
Total	3,184,165	2,479,488
Pass-Watch
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	7,812
2022	14,017
2021	12,096
2020	11,089
2019	10,489
Prior	16,733
Revolving Loans	16,200
Revolving Loans Converted to Term	1,923
Total	90,359	66,934
Substandard
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	14,443
2022	3,945
2021	4,528
2020	4,223
2019	3,967
Prior	32,689
Revolving Loans	1,318
Revolving Loans Converted to Term	3,149
Total	68,262	73,831
Commercial and industrial
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	94,543
2022	61,301
2021	26,526
2020	29,538
2019	6,715
Prior	8,990
Revolving Loans	150,997
Revolving Loans Converted to Term	8,323
Total	386,933	266,757
Commercial and industrial \| Pass
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	94,311
2022	59,814
2021	26,229
2020	29,297
2019	5,927
Prior	8,496
Revolving Loans	150,403
Revolving Loans Converted to Term	7,564
Total	382,041	255,309
Commercial and industrial \| Pass-Watch
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	229
2022	1,400
2021	257
2020	198
2019	788
Prior	450
Revolving Loans	284
Revolving Loans Converted to Term	508
Total	4,114	6,630
Commercial and industrial \| Substandard
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	3
2022	87
2021	40
2020	43
2019	0
Prior	44
Revolving Loans	310
Revolving Loans Converted to Term	251
Total	778	4,818
Commercial real estate - owner occupied
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	26,397
2022	66,353
2021	64,866
2020	55,690
2019	35,974
Prior	39,831
Revolving Loans	7,478
Revolving Loans Converted to Term	653
Total	297,242	218,503
Commercial real estate - owner occupied \| Pass
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	25,378
2022	64,227
2021	58,426
2020	55,269
2019	33,692
Prior	34,949
Revolving Loans	6,487
Revolving Loans Converted to Term	653
Total	279,081	198,546
Commercial real estate - owner occupied \| Pass-Watch
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	556
2022	963
2021	3,102
2020	351
2019	1,624
Prior	1,653
Revolving Loans	0
Revolving Loans Converted to Term	0
Total	8,249	10,105
Commercial real estate - owner occupied \| Substandard
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	463
2022	1,163
2021	3,338
2020	70
2019	658
Prior	3,229
Revolving Loans	991
Revolving Loans Converted to Term	0
Total	9,912	9,852
Commercial real estate - non-owner occupied
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	110,830
2022	254,425
2021	255,552
2020	90,590
2019	105,776
Prior	57,012
Revolving Loans	23,722
Revolving Loans Converted to Term	4,022
Total	901,929	713,202
Commercial real estate - non-owner occupied \| Pass
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	96,710
2022	254,299
2021	247,868
2020	90,232
2019	96,034
Prior	43,858
Revolving Loans	10,042
Revolving Loans Converted to Term	3,773
Total	842,816	652,691
Commercial real estate - non-owner occupied \| Pass-Watch
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	696
2022	0
2021	7,684
2020	358
2019	7,277
Prior	3,823
Revolving Loans	13,680
Revolving Loans Converted to Term	249
Total	33,767	27,282
Commercial real estate - non-owner occupied \| Substandard
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	13,424
2022	126
2021	0
2020	0
2019	2,465
Prior	9,331
Revolving Loans	0
Revolving Loans Converted to Term	0
Total	25,346	33,229
Construction and land development
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	140,038
2022	146,369
2021	58,998
2020	7,459
2019	2,753
Prior	1,093
Revolving Loans	8,359
Revolving Loans Converted to Term	6,089
Total	371,158	360,824
Construction and land development \| Pass
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	139,883
2022	143,616
2021	58,998
2020	7,459
2019	2,753
Prior	1,005
Revolving Loans	7,232
Revolving Loans Converted to Term	5,252
Total	366,198	358,215
Construction and land development \| Pass-Watch
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	155
2022	2,537
2021	0
2020	0
2019	0
Prior	11
Revolving Loans	1,127
Revolving Loans Converted to Term	837
Total	4,667	2,527
Construction and land development \| Substandard
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0
2022	216
2021	0
2020	0
2019	0
Prior	77
Revolving Loans	0
Revolving Loans Converted to Term	0
Total	293	82
Multi-family
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	46,781
2022	85,317
2021	99,348
2020	62,772
2019	32,530
Prior	53,732
Revolving Loans	7,752
Revolving Loans Converted to Term	510
Total	388,742	287,865
Multi-family \| Pass
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	44,034
2022	78,646
2021	99,032
2020	53,945
2019	32,475
Prior	47,177
Revolving Loans	7,403
Revolving Loans Converted to Term	502
Total	363,214	283,682
Multi-family \| Pass-Watch
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	2,747
2022	6,671
2021	0
2020	8,827
2019	55
Prior	6,096
Revolving Loans	349
Revolving Loans Converted to Term	8
Total	24,753	4,183
Multi-family \| Substandard
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0
2022	0
2021	316
2020	0
2019	0
Prior	459
Revolving Loans	0
Revolving Loans Converted to Term	0
Total	775	0
One-to-four family residential
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	94,676
2022	90,396
2021	89,156
2020	66,884
2019	24,734
Prior	56,858
Revolving Loans	57,441
Revolving Loans Converted to Term	8,510
Total	488,655	338,253
One-to-four family residential \| Pass
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	91,683
2022	87,716
2021	87,384
2020	65,721
2019	23,325
Prior	50,394
Revolving Loans	57,222
Revolving Loans Converted to Term	5,291
Total	468,736	323,632
One-to-four family residential \| Pass-Watch
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	2,503
2022	412
2021	958
2020	332
2019	608
Prior	2,219
Revolving Loans	219
Revolving Loans Converted to Term	321
Total	7,572	5,907
One-to-four family residential \| Substandard
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	490
2022	2,268
2021	814
2020	831
2019	801
Prior	4,245
Revolving Loans	0
Revolving Loans Converted to Term	2,898
Total	12,347	8,714
Agricultural and farmland
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	32,665
2022	38,458
2021	39,118
2020	41,966
2019	10,934
Prior	12,106
Revolving Loans	98,495
Revolving Loans Converted to Term	1,497
Total	275,239	237,746
Agricultural and farmland \| Pass
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	31,739
2022	36,428
2021	39,008
2020	37,683
2019	10,797
Prior	11,247
Revolving Loans	97,954
Revolving Loans Converted to Term	1,497
Total	266,353	223,114
Agricultural and farmland \| Pass-Watch
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	926
2022	2,030
2021	95
2020	1,006
2019	137
Prior	731
Revolving Loans	541
Revolving Loans Converted to Term	0
Total	5,466	10,004
Agricultural and farmland \| Substandard
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0
2022	0
2021	15
2020	3,277
2019	0
Prior	128
Revolving Loans	0
Revolving Loans Converted to Term	0
Total	3,420	4,628
Municipal, consumer, and other
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	39,016
2022	58,958
2021	28,676
2020	15,042
2019	1,682
Prior	61,063
Revolving Loans	28,450
Revolving Loans Converted to Term	1
Total	232,888	197,103
Municipal, consumer, and other \| Pass
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	38,953
2022	58,869
2021	28,671
2020	15,023
2019	1,639
Prior	44,137
Revolving Loans	28,433
Revolving Loans Converted to Term	1
Total	215,726	184,299
Municipal, consumer, and other \| Pass-Watch
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0
2022	4
2021	0
2020	17
2019	0
Prior	1,750
Revolving Loans	0
Revolving Loans Converted to Term	0
Total	1,771	296
Municipal, consumer, and other \| Substandard
Financing Receivable, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	63
2022	85
2021	5
2020	2
2019	43
Prior	15,176
Revolving Loans	17
Revolving Loans Converted to Term	0
Total	$ 15,391	$ 12,508

SECURITIES - Amortized cost and Fair values of securities with maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Amortized Cost
Due in 1 year or less	$ 34,149
Due after 1 year through 5 years	213,534
Due after 5 years through 10 years	217,279
Due after 10 years	49,365
Total	854,796
Fair Value
Due in 1 year or less	33,546
Due after 1 year through 5 years	197,634
Due after 5 years through 10 years	180,780
Due after 10 years	39,824
Fair Value	753,163	$ 843,524
Amortized Cost
Due in 1 year or less	2,643
Due after 1 year through 5 years	34,215
Due after 5 years through 10 years	85,250
Due after 10 years	5,678
Total	527,144
Fair Value
Due in 1 year or less	2,634
Due after 1 year through 5 years	31,718
Due after 5 years through 10 years	74,459
Due after 10 years	4,903
Fair Value	450,313	478,801
Agency residential
Amortized Cost
Total	197,549
Fair Value
Fair Value	177,050	195,441
Amortized Cost
Total	98,115
Fair Value
Fair Value	88,834	96,258
Agency commercial
Amortized Cost
Total	142,920
Fair Value
Fair Value	124,329	132,888
Amortized Cost
Total	301,243
Fair Value
Fair Value	$ 247,765	$ 261,799

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 450,852	$ 373,809	$ 373,632	$ 411,881
Transfer from available-for-sale to held-to-maturity				0
Other comprehensive income (loss) before reclassifications	(11,268)	(34,984)
Reclassifications	400	518
Other comprehensive income (loss), before tax	(10,868)	(34,466)	(9,333)	(110,403)
Income tax benefit	(3,098)	(9,824)	(2,660)	(31,470)
Other comprehensive income (loss), after tax	(7,770)	(24,642)	(6,673)	(78,933)
Ending balance	456,251	359,073	456,251	359,073
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(70,662)	(52,820)	(71,759)	1,471
Other comprehensive income (loss) before reclassifications			(12,302)	(111,814)
Reclassifications			2,969	1,411
Other comprehensive income (loss), before tax			(9,333)	(110,403)
Income tax benefit			(2,660)	(31,470)
Other comprehensive income (loss), after tax	(7,770)	(24,642)	(6,673)	(78,933)
Ending balance	(78,432)	(77,462)	(78,432)	(77,462)
Available-for-Sale
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(61,560)	(42,061)	(61,998)	5,736
Transfer from available-for-sale to held-to-maturity				7,664
Other comprehensive income (loss) before reclassifications	(11,326)	(35,358)	(12,521)	(112,931)
Reclassifications	13	0	1,820	0
Other comprehensive income (loss), before tax	(11,313)	(35,358)	(10,701)	(112,931)
Income tax benefit	(3,224)	(10,079)	(3,050)	(32,191)
Other comprehensive income (loss), after tax	(8,089)	(25,279)	(7,651)	(80,740)
Ending balance	(69,649)	(67,340)	(69,649)	(67,340)
Held-to-Maturity
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(9,256)	(10,656)	(9,946)	(3,514)
Transfer from available-for-sale to held-to-maturity				(7,664)
Other comprehensive income (loss) before reclassifications		0	0	0
Reclassifications	518	504	1,483	1,234
Other comprehensive income (loss), before tax	518	504	1,483	1,234
Income tax benefit	147	144	422	352
Other comprehensive income (loss), after tax	371	360	1,061	882
Ending balance	(8,885)	(10,296)	(8,885)	(10,296)
Derivatives
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	154	(103)	185	(751)
Transfer from available-for-sale to held-to-maturity				0
Other comprehensive income (loss) before reclassifications	58	374	219	1,117
Reclassifications	(131)	14	(334)	177
Other comprehensive income (loss), before tax	(73)	388	(115)	1,294
Income tax benefit	(21)	111	(32)	369
Other comprehensive income (loss), after tax	(52)	277	(83)	925
Ending balance	$ 102	$ 174	$ 102	$ 174