0001628280-24-044316 | 10-Q | XBRL Viewer

DEPOSITS

9 Months Ended

Sep. 30, 2024

The Company’s deposits are summarized below:


(dollars in thousands)	September 30, 2024		December 31, 2023

Noninterest-bearing deposits	$	1,008,359	$	1,072,407
Interest-bearing deposits:
Interest-bearing demand	1,076,445		1,145,092
Money market	795,150		803,381
Savings	566,783		608,424
Time	803,964		627,253
Brokered	29,999		144,880
Total interest-bearing deposits	3,272,341		3,329,030
Total deposits	$	4,280,700	$	4,401,437

Reciprocal deposits included in interest-bearing demand deposits, money market deposits, and time deposits totaled $214.2 million and $236.8 million as of September 30, 2024 and December 31, 2023, respectively. The aggregate amounts of time deposits in denominations of $250 thousand or more amounted to $214.1 million and $130.2 million as of September 30, 2024 and December 31, 2023, respectively. The aggregate amounts of time deposits in denominations of $100 thousand or more amounted to $472.7 million and $342.8 million as of September 30, 2024 and December 31, 2023, respectively.

The components of interest expense on deposits were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023

Interest-bearing demand	$	1,408	$	761	$	4,148	$	1,902
Money market	4,726		2,026		14,193		4,467
Savings	396		249		1,232		616
Time	7,702		3,275		20,744		6,011
Brokered	417		900		2,058		912
Total interest expense on deposits	$	14,649	$	7,211	$	42,375	$	13,908

FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying amount and estimated fair value (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financial assets:
Debt securities held-to-maturity	$ 463,259	$ 466,496
Financial liabilities:
FHLB advances	13,435	12,623
Level 1 \| Carrying Amount
Financial assets:
Cash and cash equivalents	179,671	141,252
Level 1 \| Estimated Fair Value
Financial assets:
Cash and cash equivalents	179,671	141,252
Level 2 \| Carrying Amount
Financial assets:
Debt securities held-to-maturity	505,075	521,439
Accrued interest receivable	24,160	24,534
Financial liabilities:
Securities sold under agreements to repurchase	29,029	42,442
Accrued interest payable	6,677	6,969
Level 2 \| Estimated Fair Value
Financial assets:
Debt securities held-to-maturity	463,259	466,496
Accrued interest receivable	24,160	24,534
Financial liabilities:
Securities sold under agreements to repurchase	29,029	42,442
Accrued interest payable	6,677	6,969
Level 3 \| Carrying Amount
Financial assets:
Restricted stock	5,086	7,160
Loans, net	3,328,864	3,364,369
Investments in unconsolidated subsidiaries	1,614	1,614
Financial liabilities:
Time deposits	803,964	627,253
Brokered time deposits	29,999	144,880
FHLB advances	13,435	12,623
Level 3 \| Estimated Fair Value
Financial assets:
Restricted stock	5,086	7,160
Loans, net	3,352,088	3,349,540
Investments in unconsolidated subsidiaries	1,614	1,614
Financial liabilities:
Time deposits	799,328	619,682
Brokered time deposits	30,003	144,944
FHLB advances	13,414	12,621
Subordinated notes \| Level 3 \| Carrying Amount
Financial liabilities:
Subordinated notes	39,533	39,474
Subordinated notes \| Level 3 \| Estimated Fair Value
Financial liabilities:
Subordinated notes	37,931	36,993
Junior subordinated debentures \| Level 3 \| Carrying Amount
Financial liabilities:
Subordinated notes	52,834	52,789
Junior subordinated debentures \| Level 3 \| Estimated Fair Value
Financial liabilities:
Subordinated notes	$ 47,686	$ 48,529

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
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

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Gross Chargeoffs by Origination Year (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Term Loans by Origination Year
Gross write-offs, year one	$ 160	$ 141	$ 288	$ 276
Gross write-offs, year two	737	11	1,122	88
Gross write-offs year three	6	0	94	0
Gross write-offs, year four	0	0	201	9
Gross write-offs, year five	0	0	4	1
Gross write-offs, prior	124	8	142	33
Revolving Loans	74	252	347	326
Revolving Loans Converted to Term	0	0	0	0
Total	1,101	412	2,198	733
Commercial and industrial
Term Loans by Origination Year
Gross write-offs, year one	0	0	0	0
Gross write-offs, year two	734	0	1,063	0
Gross write-offs year three	0	0	75	0
Gross write-offs, year four	0	0	0	0
Gross write-offs, year five	0	0	0	0
Gross write-offs, prior	0	0	11	0
Revolving Loans	0	15	93	15
Revolving Loans Converted to Term	0	0	0	0
Total	734	15	1,242	15
Commercial real estate - owner occupied
Term Loans by Origination Year
Gross write-offs, year one	6	0	6	0
Gross write-offs, year two	0	2	0	5
Gross write-offs year three	0	0	0	0
Gross write-offs, year four	0	0	0	0
Gross write-offs, year five	0	0	0	0
Gross write-offs, prior	0	0	0	0
Revolving Loans	0	0	0	0
Revolving Loans Converted to Term	0	0	0	0
Total	6	2	6	5
Commercial real estate - non-owner occupied
Term Loans by Origination Year
Gross write-offs, year one	0	0	0	0
Gross write-offs, year two	0	0	0	0
Gross write-offs year three	0	0	0	0
Gross write-offs, year four	0	0	0	0
Gross write-offs, year five	0	0	0	0
Gross write-offs, prior	0	0	0	0
Revolving Loans	0	171	0	171
Revolving Loans Converted to Term	0	0	0	0
Total	0	171	0	171
Construction and land development
Term Loans by Origination Year
Gross write-offs, year one	0	0	0	0
Gross write-offs, year two	0	0	0	0
Gross write-offs year three	0	0	0	0
Gross write-offs, year four	0	0	0	0
Gross write-offs, year five	0	0	0	0
Gross write-offs, prior	0	0	0	0
Revolving Loans	0	0	0	0
Revolving Loans Converted to Term	0	0	0	0
Total	0	0	0	0
Multi-family
Term Loans by Origination Year
Gross write-offs, year one	0	0	0	0
Gross write-offs, year two	0	0	0	0
Gross write-offs year three	0	0	0	0
Gross write-offs, year four	0	0	188	0
Gross write-offs, year five	0	0	0	0
Gross write-offs, prior	0	0	0	0
Revolving Loans	0	0	0	0
Revolving Loans Converted to Term	0	0	0	0
Total	0	0	188	0
One-to-four family residential
Term Loans by Origination Year
Gross write-offs, year one	0	0	0	0
Gross write-offs, year two	0	0	0	0
Gross write-offs year three	1	0	8	0
Gross write-offs, year four	0	0	13	0
Gross write-offs, year five	0	0	4	1
Gross write-offs, prior	124	8	131	33
Revolving Loans	0	0	44	0
Revolving Loans Converted to Term	0	0	0	0
Total	125	8	200	34
Agricultural and farmland
Term Loans by Origination Year
Gross write-offs, year one	0	0	0	0
Gross write-offs, year two	0	0	0	0
Gross write-offs year three	0	0	0	0
Gross write-offs, year four	0	0	0	0
Gross write-offs, year five	0	0	0	0
Gross write-offs, prior	0	0	0	0
Revolving Loans	0	0	0	0
Revolving Loans Converted to Term	0	0	0	0
Total	0	0	0	0
Municipal, consumer, and other
Term Loans by Origination Year
Gross write-offs, year one	154	141	282	276
Gross write-offs, year two	3	9	59	83
Gross write-offs year three	5	0	11	0
Gross write-offs, year four	0	0	0	9
Gross write-offs, year five	0	0	0	0
Gross write-offs, prior	0	0	0	0
Revolving Loans	74	66	210	140
Revolving Loans Converted to Term	0	0	0	0
Total	$ 236	$ 216	$ 562	$ 508

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Loans risk-rated by origination year (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Term Loans by Origination Year
Financing receivable year one	$ 454,328	$ 710,341
Financing receivable year two	554,307	779,973
Financing receivable year three	699,959	649,375
Financing receivable year four	566,068	355,745
Financing receivable year five	321,748	198,968
Prior	340,350	252,747
Revolving Loans	417,894	438,298
Revolving Loans Converted to Term	15,176	18,970
Total	3,369,830	3,404,417
Pass
Term Loans by Origination Year
Financing receivable year one	426,474	679,058
Financing receivable year two	529,236	750,068
Financing receivable year three	668,952	631,765
Financing receivable year four	533,800	340,462
Financing receivable year five	304,303	188,459
Prior	292,948	216,516
Revolving Loans	389,547	422,824
Revolving Loans Converted to Term	12,174	12,737
Total	3,157,434	3,241,889
Pass-Watch
Term Loans by Origination Year
Financing receivable year one	12,873	13,504
Financing receivable year two	7,101	27,776
Financing receivable year three	20,561	14,493
Financing receivable year four	26,498	11,308
Financing receivable year five	2,502	6,890
Prior	13,032	6,120
Revolving Loans	25,943	15,079
Revolving Loans Converted to Term	1,233	3,036
Total	109,743	98,206
Special Mention
Term Loans by Origination Year
Financing receivable year one	9,041
Financing receivable year two	898
Financing receivable year three	901
Financing receivable year four	780
Financing receivable year five	10,026
Prior	4,163
Revolving Loans	1,573
Revolving Loans Converted to Term	250
Total	27,632
Substandard
Term Loans by Origination Year
Financing receivable year one	5,940	17,779
Financing receivable year two	17,072	2,129
Financing receivable year three	9,545	3,117
Financing receivable year four	4,990	3,975
Financing receivable year five	4,917	3,619
Prior	30,207	30,111
Revolving Loans	831	395
Revolving Loans Converted to Term	1,519	3,197
Total	75,021	64,322
Commercial and industrial
Term Loans by Origination Year
Financing receivable year one	34,469	93,067
Financing receivable year two	55,206	59,777
Financing receivable year three	53,577	20,502
Financing receivable year four	15,146	27,020
Financing receivable year five	19,964	6,022
Prior	40,335	30,021
Revolving Loans	172,514	188,858
Revolving Loans Converted to Term	4,387	2,533
Total	395,598	427,800
Commercial and industrial \| Pass
Term Loans by Origination Year
Financing receivable year one	33,752	90,931
Financing receivable year two	51,453	58,364
Financing receivable year three	51,936	19,283
Financing receivable year four	13,003	26,816
Financing receivable year five	19,879	5,269
Prior	37,876	29,550
Revolving Loans	170,093	187,579
Revolving Loans Converted to Term	3,344	1,702
Total	381,336	419,494
Commercial and industrial \| Pass-Watch
Term Loans by Origination Year
Financing receivable year one	680	2,025
Financing receivable year two	1,470	1,340
Financing receivable year three	257	892
Financing receivable year four	1,189	144
Financing receivable year five	85	753
Prior	2,459	471
Revolving Loans	1,183	956
Revolving Loans Converted to Term	199	547
Total	7,522	7,128
Commercial and industrial \| Special Mention
Term Loans by Origination Year
Financing receivable year one	0
Financing receivable year two	289
Financing receivable year three	301
Financing receivable year four	182
Financing receivable year five	0
Prior	0
Revolving Loans	426
Revolving Loans Converted to Term	0
Total	1,198
Commercial and industrial \| Substandard
Term Loans by Origination Year
Financing receivable year one	37	111
Financing receivable year two	1,994	73
Financing receivable year three	1,083	327
Financing receivable year four	772	60
Financing receivable year five	0	0
Prior	0	0
Revolving Loans	812	323
Revolving Loans Converted to Term	844	284
Total	5,542	1,178
Commercial real estate - owner occupied
Term Loans by Origination Year
Financing receivable year one	35,944	34,311
Financing receivable year two	26,791	65,258
Financing receivable year three	62,981	62,136
Financing receivable year four	53,141	55,172
Financing receivable year five	43,471	34,206
Prior	49,102	31,210
Revolving Loans	17,226	13,549
Revolving Loans Converted to Term	182	0
Total	288,838	295,842
Commercial real estate - owner occupied \| Pass
Term Loans by Origination Year
Financing receivable year one	29,821	27,516
Financing receivable year two	25,311	64,229
Financing receivable year three	60,189	55,376
Financing receivable year four	45,088	53,634
Financing receivable year five	41,576	32,469
Prior	47,197	28,876
Revolving Loans	17,040	13,549
Revolving Loans Converted to Term	182	0
Total	266,404	275,649
Commercial real estate - owner occupied \| Pass-Watch
Term Loans by Origination Year
Financing receivable year one	4,197	4,061
Financing receivable year two	476	943
Financing receivable year three	2,231	5,210
Financing receivable year four	4,473	1,474
Financing receivable year five	547	1,573
Prior	1,367	811
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	13,291	14,072
Commercial real estate - owner occupied \| Special Mention
Term Loans by Origination Year
Financing receivable year one	1,926
Financing receivable year two	0
Financing receivable year three	0
Financing receivable year four	0
Financing receivable year five	0
Prior	0
Revolving Loans	186
Revolving Loans Converted to Term	0
Total	2,112
Commercial real estate - owner occupied \| Substandard
Term Loans by Origination Year
Financing receivable year one	0	2,734
Financing receivable year two	1,004	86
Financing receivable year three	561	1,550
Financing receivable year four	3,580	64
Financing receivable year five	1,348	164
Prior	538	1,523
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	7,031	6,121
Commercial real estate - non-owner occupied
Term Loans by Origination Year
Financing receivable year one	67,107	135,722
Financing receivable year two	129,305	247,340
Financing receivable year three	263,883	245,252
Financing receivable year four	232,051	89,247
Financing receivable year five	89,970	88,734
Prior	84,223	48,572
Revolving Loans	21,416	23,859
Revolving Loans Converted to Term	1,233	1,955
Total	889,188	880,681
Commercial real estate - non-owner occupied \| Pass
Term Loans by Origination Year
Financing receivable year one	58,586	121,536
Financing receivable year two	115,444	240,323
Financing receivable year three	250,564	237,953
Financing receivable year four	225,220	88,894
Financing receivable year five	89,131	82,094
Prior	66,324	39,228
Revolving Loans	8,227	10,274
Revolving Loans Converted to Term	1,233	1,710
Total	814,729	822,012
Commercial real estate - non-owner occupied \| Pass-Watch
Term Loans by Origination Year
Financing receivable year one	3,677	810
Financing receivable year two	430	6,893
Financing receivable year three	6,681	7,013
Financing receivable year four	6,831	353
Financing receivable year five	839	4,230
Prior	4,920	154
Revolving Loans	13,189	13,585
Revolving Loans Converted to Term	0	245
Total	36,567	33,283
Commercial real estate - non-owner occupied \| Special Mention
Term Loans by Origination Year
Financing receivable year one	0
Financing receivable year two	0
Financing receivable year three	0
Financing receivable year four	0
Financing receivable year five	0
Prior	0
Revolving Loans	0
Revolving Loans Converted to Term	0
Total	0
Commercial real estate - non-owner occupied \| Substandard
Term Loans by Origination Year
Financing receivable year one	4,844	13,376
Financing receivable year two	13,431	124
Financing receivable year three	6,638	286
Financing receivable year four	0	0
Financing receivable year five	0	2,410
Prior	12,979	9,190
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	37,892	25,386
Construction and land development
Term Loans by Origination Year
Financing receivable year one	141,353	153,652
Financing receivable year two	88,660	129,971
Financing receivable year three	81,842	56,954
Financing receivable year four	33,326	5,596
Financing receivable year five	840	2,662
Prior	1,446	872
Revolving Loans	10,626	12,213
Revolving Loans Converted to Term	1,058	2,063
Total	359,151	363,983
Construction and land development \| Pass
Term Loans by Origination Year
Financing receivable year one	140,878	153,499
Financing receivable year two	88,022	119,005
Financing receivable year three	72,878	56,954
Financing receivable year four	21,229	5,596
Financing receivable year five	840	2,662
Prior	1,374	796
Revolving Loans	9,931	12,050
Revolving Loans Converted to Term	261	525
Total	335,413	351,087
Construction and land development \| Pass-Watch
Term Loans by Origination Year
Financing receivable year one	0	153
Financing receivable year two	638	10,750
Financing receivable year three	8,748	0
Financing receivable year four	12,097	0
Financing receivable year five	0	0
Prior	18	0
Revolving Loans	695	163
Revolving Loans Converted to Term	797	1,538
Total	22,993	12,604
Construction and land development \| Special Mention
Term Loans by Origination Year
Financing receivable year one	0
Financing receivable year two	0
Financing receivable year three	0
Financing receivable year four	0
Financing receivable year five	0
Prior	0
Revolving Loans	0
Revolving Loans Converted to Term	0
Total	0
Construction and land development \| Substandard
Term Loans by Origination Year
Financing receivable year one	475	0
Financing receivable year two	0	216
Financing receivable year three	216	0
Financing receivable year four	0	0
Financing receivable year five	0	0
Prior	54	76
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	745	292
Multi-family
Term Loans by Origination Year
Financing receivable year one	36,883	87,009
Financing receivable year two	85,056	88,704
Financing receivable year three	100,702	115,718
Financing receivable year four	102,243	61,947
Financing receivable year five	60,169	34,104
Prior	42,726	24,038
Revolving Loans	4,087	5,904
Revolving Loans Converted to Term	846	499
Total	432,712	417,923
Multi-family \| Pass
Term Loans by Origination Year
Financing receivable year one	27,106	83,898
Financing receivable year two	85,056	81,507
Financing receivable year three	100,132	115,402
Financing receivable year four	102,243	53,126
Financing receivable year five	51,365	34,053
Prior	42,226	23,570
Revolving Loans	4,087	5,904
Revolving Loans Converted to Term	840	491
Total	413,055	397,951
Multi-family \| Pass-Watch
Term Loans by Origination Year
Financing receivable year one	2,799	3,111
Financing receivable year two	0	7,197
Financing receivable year three	570	0
Financing receivable year four	0	8,821
Financing receivable year five	0	51
Prior	500	468
Revolving Loans	0	0
Revolving Loans Converted to Term	6	8
Total	3,875	19,656
Multi-family \| Special Mention
Term Loans by Origination Year
Financing receivable year one	6,978
Financing receivable year two	0
Financing receivable year three	0
Financing receivable year four	0
Financing receivable year five	8,804
Prior	0
Revolving Loans	0
Revolving Loans Converted to Term	0
Total	15,782
Multi-family \| Substandard
Term Loans by Origination Year
Financing receivable year one	0	0
Financing receivable year two	0	0
Financing receivable year three	0	316
Financing receivable year four	0	0
Financing receivable year five	0	0
Prior	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	0	316
One-to-four family residential
Term Loans by Origination Year
Financing receivable year one	34,728	109,226
Financing receivable year two	91,280	93,449
Financing receivable year three	87,347	83,852
Financing receivable year four	75,325	65,226
Financing receivable year five	60,773	23,235
Prior	56,557	50,211
Revolving Loans	59,846	57,515
Revolving Loans Converted to Term	6,184	8,794
Total	472,040	491,508
One-to-four family residential \| Pass
Term Loans by Origination Year
Financing receivable year one	33,280	105,337
Financing receivable year two	89,297	91,636
Financing receivable year three	85,760	82,289
Financing receivable year four	73,658	64,094
Financing receivable year five	59,745	21,986
Prior	48,968	44,241
Revolving Loans	59,643	57,248
Revolving Loans Converted to Term	5,516	5,524
Total	455,867	472,355
One-to-four family residential \| Pass-Watch
Term Loans by Origination Year
Financing receivable year one	1,245	2,382
Financing receivable year two	1,363	286
Financing receivable year three	625	940
Financing receivable year four	441	486
Financing receivable year five	520	212
Prior	2,160	1,804
Revolving Loans	187	203
Revolving Loans Converted to Term	143	358
Total	6,684	6,671
One-to-four family residential \| Special Mention
Term Loans by Origination Year
Financing receivable year one	0
Financing receivable year two	0
Financing receivable year three	0
Financing receivable year four	598
Financing receivable year five	122
Prior	0
Revolving Loans	0
Revolving Loans Converted to Term	0
Total	720
One-to-four family residential \| Substandard
Term Loans by Origination Year
Financing receivable year one	203	1,507
Financing receivable year two	620	1,527
Financing receivable year three	962	623
Financing receivable year four	628	646
Financing receivable year five	386	1,037
Prior	5,429	4,166
Revolving Loans	16	64
Revolving Loans Converted to Term	525	2,912
Total	8,769	12,482
Agricultural and farmland
Term Loans by Origination Year
Financing receivable year one	36,728	53,719
Financing receivable year two	40,462	37,961
Financing receivable year three	34,870	37,042
Financing receivable year four	30,831	37,189
Financing receivable year five	33,383	8,981
Prior	10,265	8,619
Revolving Loans	109,277	100,658
Revolving Loans Converted to Term	1,286	3,125
Total	297,102	287,294
Agricultural and farmland \| Pass
Term Loans by Origination Year
Financing receivable year one	35,985	52,766
Financing receivable year two	37,170	37,600
Financing receivable year three	32,799	36,604
Financing receivable year four	29,367	33,960
Financing receivable year five	28,589	8,910
Prior	9,421	7,756
Revolving Loans	97,650	100,486
Revolving Loans Converted to Term	798	2,785
Total	271,779	280,867
Agricultural and farmland \| Pass-Watch
Term Loans by Origination Year
Financing receivable year one	275	953
Financing receivable year two	2,683	361
Financing receivable year three	1,424	425
Financing receivable year four	1,454	30
Financing receivable year five	511	71
Prior	844	719
Revolving Loans	10,689	172
Revolving Loans Converted to Term	88	340
Total	17,968	3,071
Agricultural and farmland \| Special Mention
Term Loans by Origination Year
Financing receivable year one	137
Financing receivable year two	609
Financing receivable year three	600
Financing receivable year four	0
Financing receivable year five	1,100
Prior	0
Revolving Loans	938
Revolving Loans Converted to Term	250
Total	3,634
Agricultural and farmland \| Substandard
Term Loans by Origination Year
Financing receivable year one	331	0
Financing receivable year two	0	0
Financing receivable year three	47	13
Financing receivable year four	10	3,199
Financing receivable year five	3,183	0
Prior	0	144
Revolving Loans	0	0
Revolving Loans Converted to Term	150	0
Total	3,721	3,356
Municipal, consumer, and other
Term Loans by Origination Year
Financing receivable year one	67,116	43,635
Financing receivable year two	37,547	57,513
Financing receivable year three	14,757	27,919
Financing receivable year four	24,005	14,348
Financing receivable year five	13,178	1,024
Prior	55,696	59,204
Revolving Loans	22,902	35,742
Revolving Loans Converted to Term	0	1
Total	235,201	239,386
Municipal, consumer, and other \| Pass
Term Loans by Origination Year
Financing receivable year one	67,066	43,575
Financing receivable year two	37,483	57,404
Financing receivable year three	14,694	27,904
Financing receivable year four	23,992	14,342
Financing receivable year five	13,178	1,016
Prior	39,562	42,499
Revolving Loans	22,876	35,734
Revolving Loans Converted to Term	0	0
Total	218,851	222,474
Municipal, consumer, and other \| Pass-Watch
Term Loans by Origination Year
Financing receivable year one	0	9
Financing receivable year two	41	6
Financing receivable year three	25	13
Financing receivable year four	13	0
Financing receivable year five	0	0
Prior	764	1,693
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Total	843	1,721
Municipal, consumer, and other \| Special Mention
Term Loans by Origination Year
Financing receivable year one	0
Financing receivable year two	0
Financing receivable year three	0
Financing receivable year four	0
Financing receivable year five	0
Prior	4,163
Revolving Loans	23
Revolving Loans Converted to Term	0
Total	4,186
Municipal, consumer, and other \| Substandard
Term Loans by Origination Year
Financing receivable year one	50	51
Financing receivable year two	23	103
Financing receivable year three	38	2
Financing receivable year four	0	6
Financing receivable year five	0	8
Prior	11,207	15,012
Revolving Loans	3	8
Revolving Loans Converted to Term	0	1
Total	$ 11,321	$ 15,191

STOCK-BASED COMPENSATION PLANS - Summary of equity award activity (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restricted stock units
Stock-based compensation plans
Outstanding (in shares)	108,865	129,422	128,159	139,986
Granted (in shares)	0	0	51,246	41,847
Exercised (in shares)	0	0	(70,540)	(51,693)
Forfeited (in shares)	(131)	(520)	(131)	(1,238)
Outstanding (in shares)	108,734	128,902	108,734	128,902
Weighted Average Grant Date Assigned Value
Outstanding (in dollars per share)	$ 19.71	$ 19.58	$ 19.56	$ 18.01
Granted (in dollars per share)	0	0	19.06	22.72
Exercised (in dollars per share)	0	0	18.96	17.91
Forfeited (in dollars per share)	19.06	21.23	19.06	18.53
Outstanding (in dollars per share)	$ 19.71	$ 19.57	$ 19.71	$ 19.57
Performance restricted stock units
Stock-based compensation plans
Outstanding (in shares)	70,333	79,097	79,097	62,067
Granted (in shares)	0	0	19,933	17,030
Adjustment for performance condition (in shares)	0	0	14,349	0
Vested (in shares)	0	0	(43,046)	0
Forfeited (in shares)	0	0	0	0
Outstanding (in shares)	70,333	79,097	70,333	79,097
Weighted Average Grant Date Assigned Value
Outstanding (in dollars per share)	$ 19.59	$ 18.25	$ 18.25	$ 17.02
Granted (in dollars per share)	0	0	19.06	22.72
Adjustment for performance condition (in dollars per share)	0	0	15.53	0
Vested (in dollars per share)	0	0	15.53	0
Forfeited (in dollars per share)	0	0	0	0
Outstanding (in dollars per share)	$ 19.59	$ 18.25	$ 19.59	$ 18.25
Stock appreciation rights
Stock-based compensation plans
Outstanding (in shares)	73,440	73,440	73,440	73,440
Granted (in shares)	0	0	0	0
Exercised (in shares)	0	0	0	0
Expirations (in shares)	0	0	0	0
Forfeited (in shares)	0	0	0	0
Outstanding (in shares)	73,440	73,440	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	0
Expired (in dollars per share)	0	0	0	0
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			4 years 7 months 6 days

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, 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]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13 [Member]
Net income	$ 47,396				47,396
Other comprehensive income	(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)
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 income	(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)
Beginning balance (in shares) at Dec. 31, 2023	31,695,828		31,695,828
Beginning balance at Dec. 31, 2023	$ 489,496	$ 116	$ 327	295,877	269,051	$ 116	(57,163)	(18,596)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13 [Member]
Net income	$ 51,508				51,508
Other comprehensive income	18,174						18,174
Stock-based compensation	1,265			1,265
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings (in shares)			96,341
Issuance of common stock upon vesting of restricted stock units, net of tax withholdings	(331)		$ 1	(332)
Repurchase of common stock (in shares)			(232,803)
Repurchase of common stock	(4,423)							(4,423)
Cash dividends and dividend equivalents	$ (18,143)				(18,143)
Ending balance (in shares) at Sep. 30, 2024	31,559,366		31,559,366
Ending balance at Sep. 30, 2024	$ 537,662		$ 328	296,810	302,532		(38,989)	(23,019)
Beginning balance (in shares) at Jun. 30, 2024			31,559,366
Beginning balance at Jun. 30, 2024	509,469		$ 328	296,430	290,386		(54,656)	(23,019)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	18,180				18,180
Other comprehensive income	15,667						15,667
Stock-based compensation	380			380
Cash dividends and dividend equivalents	$ (6,034)				(6,034)
Ending balance (in shares) at Sep. 30, 2024	31,559,366		31,559,366
Ending balance at Sep. 30, 2024	$ 537,662		$ 328	$ 296,810	$ 302,532		$ (38,989)	$ (23,019)

FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date.

Level 2 - Significant observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 - Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing as asset or liability.

The Company uses fair value to measure certain assets and liabilities on a recurring basis, such as investment securities, mortgage servicing rights, and derivatives. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period, and such measurements are therefore considered "nonrecurring" for purposes of disclosing the Company's fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for loans held for sale, collateral-dependent loans, bank premises held for sale, and foreclosed assets.

Recurring Basis

The following is a description of the methods and significant assumptions used to measure the fair value of assets and liabilities on a recurring basis.

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. The change in fair value of equity securities with readily determinable fair values 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.

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. 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.

The following tables summarize assets and liabilities measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023 by level within the fair value hierarchy:


	September 30, 2024
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Debt securities available-for-sale:
U.S. Treasury	$	—	$	132,372	$	—	$	132,372
U.S. government agency	—		57,299		—		57,299
Municipal	—		137,872		—		137,872
Mortgage-backed:
Agency residential	—		203,249		—		203,249
Agency commercial	—		121,092		—		121,092
Corporate	—		58,419		—		58,419
Equity securities with readily determinable fair values	3,364		—		—		3,364
Mortgage servicing rights	—		—		17,496		17,496
Derivative financial assets	—		3,722		—		3,722
Derivative financial liabilities	—		3,651		—		3,651


	December 31, 2023
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Debt securities available-for-sale:
U.S. Treasury	$	148,622	$	—	$	—	$	148,622
U.S. government agency	—		52,097		—		52,097
Municipal	—		205,557		—		205,557
Mortgage-backed:
Agency residential	—		173,984		—		173,984
Agency commercial	—		127,012		—		127,012
Corporate	—		52,189		—		52,189
Equity securities with readily determinable fair values	3,360		—		—		3,360
Mortgage servicing rights	—		—		19,001		19,001
Derivative financial assets	—		6,549		—		6,549
Derivative financial liabilities	—		6,227		—		6,227

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, 2024

Fair Value

Valuation Technique

Unobservable Inputs

Range
(Weighted Average)

Mortgage servicing rights

17,496

Discounted cash flows

Constant pre-payment rates (CPR)

1.9% to 94.3% (9.1%)

Discount rate

9.0% to 15.3% (9.5%)

December 31, 2023

Fair Value

Valuation Technique

Unobservable Inputs

Range
(Weighted Average)

Mortgage servicing rights

19,001

Discounted cash flows

Constant pre-payment rates (CPR)

6.2% to 49.4% (8.4%)

Discount rate

9.0% to 37.3% (9.6%)

Nonrecurring Basis

The following is a description of the methods and significant assumptions used to measure the fair value of assets and liabilities on a nonrecurring basis.

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 generally indicate fair value of the held for sale loans is greater than cost. Loans held for sale have been classified as Level 2.

Collateral-Dependent Loans

Periodically, a collateral-dependent loan is evaluated individually and is reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. If the collateral value is not sufficient, a specific reserve is recorded. Collateral values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.

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 recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.

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 recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3.

The following tables summarize assets measured at fair value on a nonrecurring basis as of September 30, 2024 and December 31, 2023 by level within the fair value hierarchy:


	September 30, 2024
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Loans held for sale	$	—	$	2,959	$	—	$	2,959
Collateral-dependent loans	—		—		28,244		28,244
Bank premises held for sale	—		—		317		317
Foreclosed assets	—		—		376		376


	December 31, 2023
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Loans held for sale	$	—	$	2,318	$	—	$	2,318
Collateral-dependent loans	—		—		32,685		32,685

Foreclosed assets	—		—		852		852

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

September 30, 2024

Fair Value

Valuation
Technique

Unobservable Inputs

Range
(Weighted Average)

Collateral-dependent loans

28,244

Appraisal of collateral

Appraisal adjustments

Not meaningful

Bank premises held for sale

317

Appraisal

Appraisal adjustments

7% (7%)

Foreclosed assets

376

Appraisal

Appraisal adjustments

7% (7%)

December 31, 2023

Fair Value

Valuation Technique

Unobservable Inputs

Range

(Weighted Average)

Collateral-dependent loans

32,685

Appraisal of collateral

Appraisal adjustments

Not meaningful

Foreclosed assets

852

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.

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 and Brokered 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.

FHLB Advances

The fair values of FHLB advances are estimated using discounted cash flow analyses based on current rates offered for borrowings with similar remaining maturities and characteristics.

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.

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


(dollars in thousands)	Fair Value Hierarchy Level	September 30, 2024				December 31, 2023
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value

Financial assets:
Cash and cash equivalents	Level 1	$	179,671	$	179,671	$	141,252	$	141,252
Debt securities held-to-maturity	Level 2	505,075		463,259		521,439		466,496
Restricted stock	Level 3	5,086		5,086		7,160		7,160
Loans, net	Level 3	3,328,864		3,352,088		3,364,369		3,349,540
Investments in unconsolidated subsidiaries	Level 3	1,614		1,614		1,614		1,614
Accrued interest receivable	Level 2	24,160		24,160		24,534		24,534

Financial liabilities:
Time deposits	Level 3	803,964		799,328		627,253		619,682
Brokered time deposits	Level 3	29,999		30,003		144,880		144,944
Securities sold under agreements to repurchase	Level 2	29,029		29,029		42,442		42,442
FHLB advances	Level 3	13,435		13,414		12,623		12,621
Subordinated notes	Level 3	39,533		37,931		39,474		36,993
Junior subordinated debentures	Level 3	52,834		47,686		52,789		48,529
Accrued interest payable	Level 2	6,677		6,677		6,969		6,969

The Company estimated the fair value of lending related commitments as described in Note 14 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.

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.

- 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

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 107
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-107

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
-SubTopic 820
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Recorded investments in loans and the allowance for loan losses (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Loan balances:
Collectively evaluated for impairment	$ 3,338,363		$ 3,367,513
Amortized Cost	31,467		36,904
Total	3,369,830		3,404,417
Allowance for credit losses:
Collectively evaluated for impairment	37,743		35,829
Allowance for Credit Losses	3,223		4,219
Allowance for Credit Losses	40,966	$ 40,806	40,048	$ 38,863	$ 37,814	$ 25,333
Commercial and industrial
Loan balances:
Collectively evaluated for impairment	394,583		427,528
Amortized Cost	1,015		272
Total	395,598		427,800
Allowance for credit losses:
Collectively evaluated for impairment	4,840		4,960
Allowance for Credit Losses	194		20
Allowance for Credit Losses	5,034	4,761	4,980	4,249	3,735	3,279
Commercial real estate - owner occupied
Loan balances:
Collectively evaluated for impairment	288,838		295,672
Amortized Cost	0		170
Total	288,838		295,842
Allowance for credit losses:
Collectively evaluated for impairment	2,231		2,272
Allowance for Credit Losses	0		0
Allowance for Credit Losses	2,231	2,191	2,272	2,254	2,362	1,193
Commercial real estate - non-owner occupied
Loan balances:
Collectively evaluated for impairment	874,417		865,394
Amortized Cost	14,771		15,287
Total	889,188		880,681
Allowance for credit losses:
Collectively evaluated for impairment	9,004		6,693
Allowance for Credit Losses	543		1,021
Allowance for Credit Losses	9,547	9,816	7,714	7,630	7,538	6,721
Construction and land development
Loan balances:
Collectively evaluated for impairment	358,935		363,767
Amortized Cost	216		216
Total	359,151		363,983
Allowance for credit losses:
Collectively evaluated for impairment	6,578		5,998
Allowance for Credit Losses	0		0
Allowance for Credit Losses	6,578	6,155	5,998	6,882	5,834	4,223
Multi-family
Loan balances:
Collectively evaluated for impairment	432,712		417,608
Amortized Cost	0		315
Total	432,712		417,923
Allowance for credit losses:
Collectively evaluated for impairment	3,790		3,837
Allowance for Credit Losses	0		0
Allowance for Credit Losses	3,790	3,712	3,837	2,535	2,603	1,472
One-to-four family residential
Loan balances:
Collectively evaluated for impairment	466,918		486,049
Amortized Cost	5,122		5,459
Total	472,040		491,508
Allowance for credit losses:
Collectively evaluated for impairment	4,654		4,957
Allowance for Credit Losses	76		247
Allowance for Credit Losses	4,730	4,785	5,204	4,088	4,077	1,759
Agricultural and farmland
Loan balances:
Collectively evaluated for impairment	297,102		287,150
Amortized Cost	0		144
Total	297,102		287,294
Allowance for credit losses:
Collectively evaluated for impairment	1,287		975
Allowance for Credit Losses	0		0
Allowance for Credit Losses	1,287	1,059	975	2,272	2,607	796
Municipal, consumer, and other
Loan balances:
Collectively evaluated for impairment	224,858		224,345
Amortized Cost	10,343		15,041
Total	235,201		239,386
Allowance for credit losses:
Collectively evaluated for impairment	5,359		6,137
Allowance for Credit Losses	2,410		2,931
Allowance for Credit Losses	$ 7,769	$ 8,327	$ 9,068	$ 8,953	$ 9,058	$ 5,890

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2024

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)	2024		2023		2024		2023

Numerator:
Net income	$	18,180	$	19,715	$	51,508	$	47,396
Earnings allocated to participating securities	—		(10)		—		(26)
Numerator for earnings per share - basic and diluted	$	18,180	$	19,705	$	51,508	$	47,370

Denominator:
Weighted average common shares outstanding	31,559,366		31,829,250		31,600,442		31,598,650
Dilutive effect of outstanding restricted stock units	118,180		137,187		115,266		102,574
Weighted average common shares outstanding, including all dilutive potential shares	31,677,546		31,966,437		31,715,708		31,701,224

Earnings per share - Basic	$	0.58	$	0.62	$	1.63	$	1.50
Earnings per share - Diluted	$	0.57	$	0.62	$	1.62	$	1.49

DEPOSITS - Interest bearing Deposits - Narrative (Detail) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Deposits [Abstract]
Reciprocal transaction deposits, Interest bearing demand deposits	$ 214.2	$ 236.8
Time deposits, at or above FDIC insurance limit	214.1	130.2
Time deposits in denominations of $100,000 or more	$ 472.7	$ 342.8

FORECLOSED ASSETS - Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Real Estate Acquired Through Foreclosure [Roll Forward]
Beginning balance	$ 320	$ 3,080	$ 852	$ 3,030
Acquired	0	0	0	271
Transfers from loans	278	879	652	1,049
Proceeds from sales	(178)	(2,990)	(1,143)	(3,274)
Net gain on sales	10	564	105	632
Direct write-downs	(54)	(14)	(90)	(189)
Ending balance	$ 376	$ 1,519	$ 376	$ 1,519

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

EARNINGS PER SHARE

The Company previously granted restricted stock units that contained non-forfeitable rights to dividend equivalents which were considered participating securities. Prior to 2024, these restricted stock units were included in the calculation of 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)	2024		2023		2024		2023

Numerator:
Net income	$	18,180	$	19,715	$	51,508	$	47,396
Earnings allocated to participating securities	—		(10)		—		(26)
Numerator for earnings per share - basic and diluted	$	18,180	$	19,705	$	51,508	$	47,370

Denominator:
Weighted average common shares outstanding	31,559,366		31,829,250		31,600,442		31,598,650
Dilutive effect of outstanding restricted stock units	118,180		137,187		115,266		102,574
Weighted average common shares outstanding, including all dilutive potential shares	31,677,546		31,966,437		31,715,708		31,701,224

Earnings per share - Basic	$	0.58	$	0.62	$	1.63	$	1.50
Earnings per share - Diluted	$	0.57	$	0.62	$	1.62	$	1.49

ACQUISITIONS - Acquisition-related expenses (Details) - USD ($)	3 Months Ended		9 Months Ended		15 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024
NONINTEREST EXPENSE
PROVISION FOR CREDIT LOSSES	$ (746,000)	$ (983,000)	$ (1,983,000)	$ (5,004,000)
NONINTEREST EXPENSE
Salaries	16,325,000	15,644,000	49,346,000	51,715,000
Furniture and equipment	446,000	667,000	1,544,000	2,135,000
Data processing	2,640,000	2,581,000	8,171,000	9,787,000
Marketing and customer relations	1,380,000	1,679,000	3,372,000	3,874,000
Loan collection and servicing	476,000	345,000	1,403,000	971,000
Total noninterest expense	$ 31,322,000	$ 30,671,000	$ 93,099,000	100,577,000
Town and Country
NONINTEREST EXPENSE
PROVISION FOR CREDIT LOSSES				5,924,000
NONINTEREST EXPENSE
Salaries				3,584,000
Furniture and equipment				39,000
Data processing				2,031,000
Marketing and customer relations				24,000
Loan collection and servicing				125,000
Legal fees and other noninterest expense				1,964,000
Total noninterest expense				7,767,000
Total Town and Country acquisition-related expenses				$ 13,691,000	$ 0

FORECLOSED ASSETS - Gains (losses) on Foreclosed Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract]
Direct write-downs	$ (54)	$ (14)	$ (90)	$ (189)
Net gain on sales	10	564	105	632
Gains (losses) on foreclosed assets	$ (44)	$ 550	$ 15	$ 443

FORECLOSED ASSETS

9 Months Ended

Sep. 30, 2024

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

FORCLOSED ASSETS

FORECLOSED ASSETS

Foreclosed assets activity was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023

Beginning balance	$	320	$	3,080	$	852	$	3,030
Acquired	—		—		—		271
Transfers from loans	278		879		652		1,049

Proceeds from sales	(178)		(2,990)		(1,143)		(3,274)

Net gain on sales	10		564		105		632
Direct write-downs	(54)		(14)		(90)		(189)
Ending balance	$	376	$	1,519	$	376	$	1,519

Gains (losses) on foreclosed assets included the following:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023

Direct write-downs	$	(54)	$	(14)	$	(90)	$	(189)
Net gain on sales	10		564		105		632
Gains (losses) on foreclosed assets	$	(44)	$	550	$	15	$	443

As of September 30, 2024, there were $0.2 million foreclosed one-to-four family residential real estate properties held. As of December 31, 2023, the carrying value of foreclosed one-to-four family residential real estate properties was $0.1 million.

As of September 30, 2024, there were 24 one-to-four family residential real estate loans in the process of foreclosure totaling $1.9 million. As of December 31, 2023, there were 16 one-to-four family residential real estate loans in the process of foreclosure totaling $1.2 million.

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Activity in Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 40,806	$ 37,814	$ 40,048	$ 25,333
PCD allowance established in acquisition				1,247
Provision for credit losses	746	983	1,983	5,004
Charge-offs	(1,101)	(412)	(2,198)	(733)
Recoveries	515	478	1,133	1,029
Ending balance	40,966	38,863	40,966	38,863
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	4,761	3,735	4,980	3,279
PCD allowance established in acquisition				69
Provision for credit losses	980	515	1,219	1,693
Charge-offs	(734)	(15)	(1,242)	(15)
Recoveries	27	14	77	45
Ending balance	5,034	4,249	5,034	4,249
Commercial real estate - owner occupied
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	2,191	2,362	2,272	1,193
PCD allowance established in acquisition				127
Provision for credit losses	36	(108)	(49)	336
Charge-offs	(6)	(2)	(6)	(5)
Recoveries	10	2	14	16
Ending balance	2,231	2,254	2,231	2,254
Commercial real estate - non-owner occupied
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	9,816	7,538	7,714	6,721
PCD allowance established in acquisition				239
Provision for credit losses	(598)	248	1,247	87
Charge-offs	0	(171)	0	(171)
Recoveries	329	15	586	253
Ending balance	9,547	7,630	9,547	7,630
Construction and land development
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	6,155	5,834	5,998	4,223
PCD allowance established in acquisition				240
Provision for credit losses	423	1,004	578	398
Charge-offs	0	0	0	0
Recoveries	0	44	2	52
Ending balance	6,578	6,882	6,578	6,882
Multi-family
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	3,712	2,603	3,837	1,472
PCD allowance established in acquisition				68
Provision for credit losses	78	(348)	141	630
Charge-offs	0	0	(188)	0
Recoveries	0	280	0	280
Ending balance	3,790	2,535	3,790	2,535
One-to-four family residential
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	4,785	4,077	5,204	1,759
PCD allowance established in acquisition				492
Provision for credit losses	26	(21)	(470)	939
Charge-offs	(125)	(8)	(200)	(34)
Recoveries	44	40	196	135
Ending balance	4,730	4,088	4,730	4,088
Agricultural and farmland
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,059	2,607	975	796
PCD allowance established in acquisition				5
Provision for credit losses	226	(337)	302	(100)
Charge-offs	0	0	0	0
Recoveries	2	2	10	4
Ending balance	1,287	2,272	1,287	2,272
Municipal, consumer, and other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	8,327	9,058	9,068	5,890
PCD allowance established in acquisition				7
Provision for credit losses	(425)	30	(985)	1,021
Charge-offs	(236)	(216)	(562)	(508)
Recoveries	103	81	248	244
Ending balance	$ 7,769	$ 8,953	$ 7,769	8,953
Cumulative Effect, Period of Adoption, Adjustment
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				6,983
Cumulative Effect, Period of Adoption, Adjustment \| Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				(822)
Cumulative Effect, Period of Adoption, Adjustment \| Commercial real estate - owner occupied
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				587
Cumulative Effect, Period of Adoption, Adjustment \| Commercial real estate - non-owner occupied
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				501
Cumulative Effect, Period of Adoption, Adjustment \| Construction and land development
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				1,969
Cumulative Effect, Period of Adoption, Adjustment \| Multi-family
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				85
Cumulative Effect, Period of Adoption, Adjustment \| One-to-four family residential
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				797
Cumulative Effect, Period of Adoption, Adjustment \| Agricultural and farmland
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				1,567
Cumulative Effect, Period of Adoption, Adjustment \| Municipal, consumer, and other
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance				$ 2,299

FORECLOSED ASSETS (Tables)

9 Months Ended

Sep. 30, 2024

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

Schedule of foreclosed assets activity

Foreclosed assets activity was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023

Beginning balance	$	320	$	3,080	$	852	$	3,030
Acquired	—		—		—		271
Transfers from loans	278		879		652		1,049

Proceeds from sales	(178)		(2,990)		(1,143)		(3,274)

Net gain on sales	10		564		105		632
Direct write-downs	(54)		(14)		(90)		(189)
Ending balance	$	376	$	1,519	$	376	$	1,519

Schedule of gains (losses) on foreclosed assets

Gains (losses) on foreclosed assets included the following:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023

Direct write-downs	$	(54)	$	(14)	$	(90)	$	(189)
Net gain on sales	10		564		105		632
Gains (losses) on foreclosed assets	$	(44)	$	550	$	15	$	443

SECURITIES (Tables)

9 Months Ended

Sep. 30, 2024

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, 2024
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value

Available-for-sale:
U.S. Treasury	$	139,692	$	—	$	(7,320)	$	—	$	132,372
U.S. government agency	59,167		101		(1,969)		—		57,299
Municipal	154,042		15		(16,185)		—		137,872
Mortgage-backed:
Agency residential	212,551		1,007		(10,309)		—		203,249
Agency commercial	131,313		8		(10,229)		—		121,092
Corporate	61,716		96		(3,393)		—		58,419
Total available-for-sale	$	758,481	$	1,227	$	(49,405)	$	—	$	710,303

	September 30, 2024
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses

Held-to-maturity:
U.S. government agency	$	88,465	$	—	$	(6,031)	$	82,434	$	—
Municipal	36,319		353		(138)		36,534		—
Mortgage-backed:
Agency residential	88,232		21		(3,595)		84,658		—
Agency commercial	292,059		26		(32,452)		259,633		—
Total held-to-maturity	$	505,075	$	400	$	(42,216)	$	463,259	$	—


	December 31, 2023
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value

Available-for-sale:
U.S. Treasury	$	159,715	$	—	$	(11,093)	$	—	$	148,622
U.S. government agency	55,359		—		(3,262)		—		52,097
Municipal	229,030		26		(23,499)		—		205,557
Mortgage-backed:
Agency residential	188,641		61		(14,718)		—		173,984
Agency commercial	141,214		3		(14,205)		—		127,012
Corporate	57,665		9		(5,485)		—		52,189
Total available-for-sale	$	831,624	$	99	$	(72,262)	$	—	$	759,461

	December 31, 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	$	88,448	$	—	$	(8,292)	$	80,156	$	—
Municipal	38,442		394		(163)		38,673		—
Mortgage-backed:
Agency residential	95,828		—		(5,569)		90,259		—
Agency commercial	298,721		—		(41,313)		257,408		—
Total held-to-maturity	$	521,439	$	394	$	(55,337)	$	466,496	$	—

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, 2024 and December 31, 2023, aggregated by category and length of time that individual debt securities have been in a continuous unrealized loss position:


	September 30, 2024
	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	$	—	$	—	$	(7,320)	$	132,372	$	(7,320)	$	132,372
U.S. government agency	(5)		2,995		(1,964)		49,468		(1,969)		52,463
Municipal	—		—		(16,185)		135,209		(16,185)		135,209
Mortgage-backed:
Agency residential	(116)		19,691		(10,193)		137,916		(10,309)		157,607
Agency commercial	(5)		2,595		(10,224)		116,421		(10,229)		119,016
Corporate	—		—		(3,393)		44,464		(3,393)		44,464
Total available-for-sale	$	(126)	$	25,281	$	(49,279)	$	615,850	$	(49,405)	$	641,131


	December 31, 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	$	—	$	—	$	(11,093)	$	148,622	$	(11,093)	$	148,622
U.S. government agency	(2)		168		(3,260)		51,910		(3,262)		52,078
Municipal	(26)		4,749		(23,473)		194,287		(23,499)		199,036
Mortgage-backed:
Agency residential	(163)		9,354		(14,555)		156,785		(14,718)		166,139
Agency commercial	(26)		3,016		(14,179)		123,404		(14,205)		126,420
Corporate	(414)		4,361		(5,071)		45,826		(5,485)		50,187
Total available-for-sale	$	(631)	$	21,648	$	(71,631)	$	720,834	$	(72,262)	$	742,482

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

The amortized cost and fair value of debt securities by contractual maturity, as of September 30, 2024, 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	$	50,398	$	49,930	$	4,891	$	4,873
Due after 1 year through 5 years	184,468		174,898		49,208		47,631
Due after 5 years through 10 years	157,851		142,184		68,427		64,225
Due after 10 years	21,900		18,950		2,258		2,239

Mortgage-backed:
Agency residential	212,551		203,249		88,232		84,658
Agency commercial	131,313		121,092		292,059		259,633
Total	$	758,481	$	710,303	$	505,075	$	463,259

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)	2024		2023		2024		2023

Proceeds from sales	$	—	$	39,436	$	66,812	$	185,280
Gross realized gains	—		—		—		—
Gross realized losses	—		(813)		(3,382)		(1,820)

Debt securities, trading, and equity securities, FV-NI

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


	September 30, 2024
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value

Initial cost	$	3,124	$	2,973
Cumulative net unrealized gains (losses)	240		(335)
Carrying value	$	3,364	$	2,638


	December 31, 2023
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value

Initial cost	$	3,143	$	2,840
Cumulative net unrealized gains (losses)	217		(335)
Carrying value	$	3,360	$	2,505

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, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023

Readily determinable fair value	$	136	$	(46)	$	24	$	77
No readily determinable fair value	—		—		—		(138)
Unrealized gains (losses) on equity securities	$	136	$	(46)	$	24	$	(61)

- 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

ACCOUNTING POLICIES	9 Months Ended
ACCOUNTING POLICIES	Sep. 30, 2024
Accounting Policies [Abstract]
ACCOUNTING POLICIES	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 financial products and services to consumers, 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, 2023, filed with the SEC on March 6, 2024. 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. The Company expects to exit its status as an emerging growth company as of December 31, 2024. 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. Low Income Housing Tax Credits The Company holds an ownership interest in a limited liability company, as a limited member, that invests in affordable housing projects. This investment is designed to generate a return primarily through the realization of federal tax credits and deductions, which may be subject to recapture by taxing authorities if compliance requirements are not met. The Company accounts for its low income housing investments using the proportional amortization method. The Company’s investment in the qualified affordable housing project meets the definition of a variable interest entity ("VIE") as the entity is structured such that the limited partner investors lack substantive voting rights. The managing member has both the power to direct the activities that most significantly impact the economic performance of the entity and the obligation to absorb losses or the right to receive benefits that could be significant to the entity. Accordingly, the Company is not the primary beneficiary and is not required to consolidate this entity. The Company's maximum exposure to loss is limited to the carrying amount of the investment, which was $7.3 million as of September 30, 2024. 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, 2024, the Company adopted 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. The Company adopted ASU 2023-02 using the modified retrospective method. The Company recorded a $0.1 million increase to retained earnings and decrease to deferred tax liability, as well as a $7.2 million increase to other assets and other liabilities, as a result of the adoption. 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 did not have an 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 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 did not have an impact on the Company’s consolidated results of operations or financial position. Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 expands disclosure requirements for significant segment expenses under Topic 280. The amendments require public entities to disclose significant expense categories for each reportable segment, other segment items, the title and position of the chief operating decision-maker, and interim disclosures of certain segment-related information previously required only on an annual basis. The amendments clarify that entities reporting single segments must disclose both the new and existing segment disclosures under Topic 280, and a public entity is permitted to disclose multiple measures of segment profit or loss if certain criteria are met. The amendments in this update are effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 31, 2024. ASU 2023-07 must be applied on a retrospective basis. 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 December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 expands income tax disclosure requirements. The amendments require annual disclosure of certain information relating to the rate reconciliation, income taxes paid by jurisdiction, income (loss) from continuing operations before income tax expense (benefit) disaggregated between domestic and foreign, income tax expense (benefit) from continuing operations disaggregated by federal (national), state, and foreign. The amendments also eliminate certain requirements relating to unrecognized tax benefits and certain deferred tax disclosure relating to subsidiaries and corporate joint ventures. The amendments in this update are effective for years beginning after December 15, 2024. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. 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.

REGULATORY CAPITAL (Details) $ in Thousands	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
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	$ 621,289	$ 586,604
Actual, ratio (as a percent)	0.1613	0.1492
For capital adequacy purposes, amount	$ 308,063	$ 314,496
For capital adequacy purposes, ratio (as a percent).	0.0800	0.0800
To be well capitalized under prompt corrective action provisions, amount	$ 385,079	$ 393,119
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	$ 581,514	$ 550,808
Actual, ratio (as a percent)	0.1510	0.1401
For capital adequacy purposes, amount	$ 231,048	$ 235,872
For capital adequacy purposes, ratio (as a percent)	0.0600	0.0600
To be well capitalized under prompt corrective action provisions, amount	$ 308,063	$ 314,496
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	$ 581,514	$ 550,808
Actual, ratio (as a percent)	15.10%	14.01%
For capital adequacy purposes, amount	$ 173,286	$ 176,904
For capital adequacy purposes, ratio (as a percent)	4.50%	4.50%
To be well capitalized under prompt corrective action provisions, amount	$ 250,302	$ 255,528
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	$ 581,514	$ 550,808
Actual, ratio (as a percent)	0.1164	0.1096
For capital adequacy purposes, amount	$ 199,790	$ 201,063
For capital adequacy purposes, ratio (as a percent)	0.0400	0.0400
To be well capitalized under prompt corrective action provisions, amount	$ 249,738	$ 251,329
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	$ 637,198	$ 603,234
Actual, ratio (as a percent)	0.1654	0.1533
For capital adequacy purposes, amount	$ 308,213	$ 314,814
For capital adequacy purposes, ratio (as a percent).	0.0800	0.0800
Total Capital (to Risk Weighted Assets)
Actual, amount	$ 557,890	$ 527,964
Actual, ratio (as a percent)	0.1448	0.1342
For capital adequacy purposes, amount	$ 231,160	$ 236,110
For capital adequacy purposes, ratio (as a percent)	0.0600	0.0600
Common Equity Tier 1 Capital (to Risk Weighted Assets)
Actual, amount	$ 506,670	$ 476,789
Actual, ratio (as a percent)	13.15%	12.12%
For capital adequacy purposes, amount	$ 173,370	$ 177,083
For capital adequacy purposes, ratio (as a percent)	4.50%	4.50%
Tier 1 Capital (to Average Assets)
Actual, amount	$ 557,890	$ 527,964
Actual, ratio (as a percent)	0.1116	0.1049
For capital adequacy purposes, amount	$ 199,919	$ 201,231
For capital adequacy purposes, ratio (as a percent)	0.0400	0.0400

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, 2023
NONINTEREST EXPENSE
Total revenues (net interest income and noninterest income)	$ 57,459	$ 174,015
Net income	$ 19,497	$ 47,697
Earnings per share - basic (in dollars per share)	$ 0.61	$ 1.49
Earnings per share - diluted (in dollars per share)	$ 0.61	$ 1.49

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Modifications (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Receivables [Abstract]
Financing receivable, excluding accrued interest, modified in period, amount	$ 0	$ 0	$ 0	$ 0
Financing receivable, excluding accrued interest, modified, accumulated	$ 0		$ 0		$ 0

STOCK-BASED COMPENSATION PLANS (Tables)

9 Months Ended

Sep. 30, 2024

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)	2024		2023		2024		2023

Restricted stock units	$	263	$	313	$	798	$	907
Performance restricted stock units	117		295		467		652
Total awards classified as equity	380		608		1,265		1,559
Stock appreciation rights	64		3		5		(43)
Total stock-based compensation expense	$	444	$	611	$	1,270	$	1,516

Schedule of the summary of outstanding restricted stock units

The following is a summary of restricted stock unit activity:


	Three Months Ended September 30,
	2024			2023
	Restricted Stock Units	Weighted Average Grant Date Fair Value		Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	108,865	$	19.71	129,422	$	19.58
Granted	—	—		—	—
Vested	—	—		—	—
Forfeited	(131)	19.06		(520)	21.23
Ending balance	108,734	$	19.71	128,902	$	19.57

	Nine Months Ended September 30,
	2024			2023
	Restricted Stock Units	Weighted Average Grant Date Fair Value		Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	128,159	$	19.56	139,986	$	18.01
Granted	51,246	19.06		41,847	22.72
Vested	(70,540)	18.96		(51,693)	17.91
Forfeited	(131)	19.06		(1,238)	18.53
Ending balance	108,734	$	19.71	128,902	$	19.57

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


	Three Months Ended September 30,
	2024			2023
	Performance Restricted Stock Units	Weighted Average Grant Date Fair Value		Performance Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	70,333	$	19.59	79,097	$	18.25
Granted	—	—		—	—
Adjustment for performance condition	—	—		—	—
Vested	—	—		—	—
Forfeited	—	—		—	—
Ending balance	70,333	$	19.59	79,097	$	18.25

	Nine Months Ended September 30,
	2024			2023
	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	19,933	19.06		17,030	22.72
Adjustment for performance condition	14,349	15.53		—	—
Vested	(43,046)	15.53		—	—
Forfeited	—	—		—	—
Ending balance	70,333	$	19.59	79,097	$	18.25

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,
	2024			2023
	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	73,440	$	16.32
Granted	—	—		—	—
Exercised	—	—		—	—
Expired	—	—		—	—
Forfeited	—	—		—	—
Ending balance	73,440	$	16.32	73,440	$	16.32

	Nine Months Ended September 30,
	2024			2023
	Stock Appreciation Rights	Weighted Average Grant Date Assigned Value		Stock Appreciation Rights	Weighted Average Grant Date Assigned Value
Beginning balance	73,440	$	16.32	73,440	$	16.32
Granted	—	—		—	—
Exercised	—	—		—	—
Expired	—	—		—	—
Forfeited	—	—		—	—
Ending balance	73,440	$	16.32	73,440	$	16.32

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, 2024		December 31, 2023
Risk-free interest rate	3.58	%	3.85	%
Expected volatility	37.23	%	37.37	%
Expected life (in years)	4.9		5.7
Expected dividend yield	3.47	%	3.22	%

ACQUISITIONS - Assets Acquired and Liabilities (Details) - USD ($) $ in Thousands	Feb. 01, 2023	Sep. 30, 2024	Dec. 31, 2023
Consideration paid:
Goodwill		$ 59,820	$ 59,820
Town and Country
Assets acquired:
Cash and cash equivalents	$ 23,542
Interest-bearing time deposits with banks	249
Debt securities	167,869
Equity securities	301
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	8,940
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

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Summary of loans

Major categories of loans are summarized as follows:


(dollars in thousands)	September 30, 2024		December 31, 2023

Commercial and industrial	$	395,598	$	427,800
Commercial real estate - owner occupied	288,838		295,842
Commercial real estate - non-owner occupied	889,188		880,681
Construction and land development	359,151		363,983
Multi-family	432,712		417,923
One-to-four family residential	472,040		491,508
Agricultural and farmland	297,102		287,294
Municipal, consumer, and other	235,201		239,386
Loans, before allowance for credit losses	3,369,830		3,404,417
Allowance for credit losses	(40,966)		(40,048)
Loans, net of allowance for credit losses	$	3,328,864	$	3,364,369

Schedule of activity in allowance for loan losses

The following tables detail activity in the allowance for credit losses:


	Three Months Ended September 30, 2024
(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	$	4,761	$	2,191	$	9,816	$	6,155	$	3,712	$	4,785	$	1,059	$	8,327	$	40,806

Provision for credit losses	980		36		(598)		423		78		26		226		(425)		746
Charge-offs	(734)		(6)		—		—		—		(125)		—		(236)		(1,101)
Recoveries	27		10		329		—		—		44		2		103		515
Ending balance	$	5,034	$	2,231	$	9,547	$	6,578	$	3,790	$	4,730	$	1,287	$	7,769	$	40,966

	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

	Nine Months Ended September 30, 2024
(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	$	4,980	$	2,272	$	7,714	$	5,998	$	3,837	$	5,204	$	975	$	9,068	$	40,048

Provision for credit losses	1,219		(49)		1,247		578		141		(470)		302		(985)		1,983
Charge-offs	(1,242)		(6)		—		—		(188)		(200)		—		(562)		(2,198)
Recoveries	77		14		586		2		—		196		10		248		1,133
Ending balance	$	5,034	$	2,231	$	9,547	$	6,578	$	3,790	$	4,730	$	1,287	$	7,769	$	40,966

	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

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


	September 30, 2024
(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	$	394,583	$	288,838	$	874,417	$	358,935	$	432,712	$	466,918	$	297,102	$	224,858	$	3,338,363
Individually evaluated for impairment	1,015		—		14,771		216		—		5,122		—		10,343		31,467
Total	$	395,598	$	288,838	$	889,188	$	359,151	$	432,712	$	472,040	$	297,102	$	235,201	$	3,369,830

Allowance for credit losses:
Collectively evaluated for impairment	$	4,840	$	2,231	$	9,004	$	6,578	$	3,790	$	4,654	$	1,287	$	5,359	$	37,743
Individually evaluated for impairment	194		—		543		—		—		76		—		2,410		3,223
Total	$	5,034	$	2,231	$	9,547	$	6,578	$	3,790	$	4,730	$	1,287	$	7,769	$	40,966

	December 31, 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	$	427,528	$	295,672	$	865,394	$	363,767	$	417,608	$	486,049	$	287,150	$	224,345	$	3,367,513
Individually evaluated for impairment	272		170		15,287		216		315		5,459		144		15,041		36,904
Total	$	427,800	$	295,842	$	880,681	$	363,983	$	417,923	$	491,508	$	287,294	$	239,386	$	3,404,417

Allowance for credit losses:
Collectively evaluated for impairment	$	4,960	$	2,272	$	6,693	$	5,998	$	3,837	$	4,957	$	975	$	6,137	$	35,829
Individually evaluated for impairment	20		—		1,021		—		—		247		—		2,931		4,219
Total	$	4,980	$	2,272	$	7,714	$	5,998	$	3,837	$	5,204	$	975	$	9,068	$	40,048

The following tables present 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, 2024
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total

Commercial and industrial	$	—	$	973	$	42	$	1,015	$	194
Commercial real estate - owner occupied	—		—		—		—		—
Commercial real estate - non-owner occupied	14,771		—		—		14,771		543
Construction and land development	216		—		—		216		—
Multi-family	—		—		—		—		—
One-to-four family residential	5,122		—		—		5,122		76
Agricultural and farmland	—		—		—		—		—
Municipal, consumer, and other	10,329		—		14		10,343		2,410
Total	$	30,438	$	973	$	56	$	31,467	$	3,223

	December 31, 2023
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total

Commercial and industrial	$	—	$	37	$	235	$	272	$	20
Commercial real estate - owner occupied	170		—		—		170		—
Commercial real estate - non-owner occupied	15,287		—		—		15,287		1,021
Construction and land development	216		—		—		216		—
Multi-family	315		—		—		315		—
One-to-four family residential	5,459		—		—		5,459		247
Agricultural and farmland	144		—		—		144		—
Municipal, consumer, and other	14,978		39		24		15,041		2,931
Total	$	36,569	$	76	$	259	$	36,904	$	4,219

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

Gross charge-offs, further sorted by origination year, were as follows during the three months ended September 30, 2024 and 2023.


	Gross Charge-Offs for the Three Months Ended September 30, 2024
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2024		2023		2022		2021		2020		Prior

Commercial and industrial	$	—	$	734	$	—	$	—	$	—	$	—	$	—	$	—	$	734
Commercial real estate - owner occupied	6		—		—		—		—		—		—		—		6
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		1		—		—		124		—		—		125
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	154		3		5		—		—		—		74		—		236
Total	$	160	$	737	$	6	$	—	$	—	$	124	$	74	$	—	$	1,101

	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, further sorted by origination year, were as follows during the nine months ended September 30, 2024 and 2023.


	Gross Charge-Offs for the Nine Months Ended September 30, 2024
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2024		2023		2022		2021		2020		Prior

Commercial and industrial	$	—	$	1,063	$	75	$	—	$	—	$	11	$	93	$	—	$	1,242
Commercial real estate - owner occupied	6		—		—		—		—		—		—		—		6
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		188		—		—		—		—		188
One-to-four family residential	—		—		8		13		4		131		44		—		200
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	282		59		11		—		—		—		210		—		562
Total	$	288	$	1,122	$	94	$	201	$	4	$	142	$	347	$	—	$	2,198

	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 recorded investment on past due basis

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


	September 30, 2024
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans

Commercial and industrial	$	393,371	$	1,212	$	—	$	1,015	$	395,598
Commercial real estate - owner occupied	288,838		—		—		—		288,838
Commercial real estate - non-owner occupied	887,355		—		—		1,833		889,188
Construction and land development	358,935		—		—		216		359,151
Multi-family	432,712		—		—		—		432,712
One-to-four family residential	466,096		822		—		5,122		472,040
Agricultural and farmland	296,952		150		—		—		297,102
Municipal, consumer, and other	234,942		240		5		14		235,201
Total	$	3,359,201	$	2,424	$	5	$	8,200	$	3,369,830


	December 31, 2023
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans

Commercial and industrial	$	427,300	$	228	$	—	$	272	$	427,800
Commercial real estate - owner occupied	295,672		—		—		170		295,842
Commercial real estate - non-owner occupied	878,591		255		—		1,835		880,681
Construction and land development	363,735		32		—		216		363,983
Multi-family	417,597		11		—		315		417,923
One-to-four family residential	484,969		1,735		—		4,804		491,508
Agricultural and farmland	286,820		330		—		144		287,294
Municipal, consumer, and other	239,033		252		37		64		239,386
Total	$	3,393,717	$	2,843	$	37	$	7,820	$	3,404,417

Schedule of non-accrual loans

The following tables present nonaccrual loans with and without a related allowance for credit losses:


	September 30, 2024
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual

Commercial and industrial	$	522	$	493	$	1,015
Commercial real estate - owner occupied	—		—		—
Commercial real estate - non-owner occupied	—		1,833		1,833
Construction and land development	216		—		216
Multi-family	—		—		—
One-to-four family residential	350		4,772		5,122
Agricultural and farmland	—		—		—
Municipal, consumer, and other	—		14		14
Total	$	1,088	$	7,112	$	8,200

	December 31, 2023
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual

Commercial and industrial	$	120	$	152	$	272
Commercial real estate - owner occupied	—		170		170
Commercial real estate - non-owner occupied	188		1,647		1,835
Construction and land development	216		—		216
Multi-family	—		315		315
One-to-four family residential	14		4,790		4,804
Agricultural and farmland	—		144		144
Municipal, consumer, and other	—		64		64
Total	$	538	$	7,282	$	7,820

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, 2024
(dollars in thousands)	Pass		Pass-Watch		Special Mention		Substandard		Total

Commercial and industrial	$	381,336	$	7,522	$	1,198	$	5,542	$	395,598
Commercial real estate - owner occupied	266,404		13,291		2,112		7,031		288,838
Commercial real estate - non-owner occupied	814,729		36,567		—		37,892		889,188
Construction and land development	335,413		22,993		—		745		359,151
Multi-family	413,055		3,875		15,782		—		432,712
One-to-four family residential	455,867		6,684		720		8,769		472,040
Agricultural and farmland	271,779		17,968		3,634		3,721		297,102
Municipal, consumer, and other	218,851		843		4,186		11,321		235,201
Total	$	3,157,434	$	109,743	$	27,632	$	75,021	$	3,369,830


	December 31, 2023
(dollars in thousands)	Pass		Pass-Watch		Substandard		Total

Commercial and industrial	$	419,494	$	7,128	$	1,178	$	427,800
Commercial real estate - owner occupied	275,649		14,072		6,121		295,842
Commercial real estate - non-owner occupied	822,012		33,283		25,386		880,681
Construction and land development	351,087		12,604		292		363,983
Multi-family	397,951		19,656		316		417,923
One-to-four family residential	472,355		6,671		12,482		491,508
Agricultural and farmland	280,867		3,071		3,356		287,294
Municipal, consumer, and other	222,474		1,721		15,191		239,386
Total	$	3,241,889	$	98,206	$	64,322	$	3,404,417

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, 2024:


(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2024		2023		2022		2021		2020		Prior
Commercial and industrial
Pass	$	33,752	$	51,453	$	51,936	$	13,003	$	19,879	$	37,876	$	170,093	$	3,344	$	381,336
Pass-Watch	680		1,470		257		1,189		85		2,459		1,183		199		7,522
Special Mention	—		289		301		182		—		—		426		—		1,198
Substandard	37		1,994		1,083		772		—		—		812		844		5,542
Total	$	34,469	$	55,206	$	53,577	$	15,146	$	19,964	$	40,335	$	172,514	$	4,387	$	395,598

Commercial real estate - owner occupied
Pass	$	29,821	$	25,311	$	60,189	$	45,088	$	41,576	$	47,197	$	17,040	$	182	$	266,404
Pass-Watch	4,197		476		2,231		4,473		547		1,367		—		—		13,291
Special Mention	1,926		—		—		—		—		—		186		—		2,112
Substandard	—		1,004		561		3,580		1,348		538		—		—		7,031
Total	$	35,944	$	26,791	$	62,981	$	53,141	$	43,471	$	49,102	$	17,226	$	182	$	288,838

Commercial real estate - non-owner occupied
Pass	$	58,586	$	115,444	$	250,564	$	225,220	$	89,131	$	66,324	$	8,227	$	1,233	$	814,729
Pass-Watch	3,677		430		6,681		6,831		839		4,920		13,189		—		36,567
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	4,844		13,431		6,638		—		—		12,979		—		—		37,892
Total	$	67,107	$	129,305	$	263,883	$	232,051	$	89,970	$	84,223	$	21,416	$	1,233	$	889,188

Construction and land development
Pass	$	140,878	$	88,022	$	72,878	$	21,229	$	840	$	1,374	$	9,931	$	261	$	335,413
Pass-Watch	—		638		8,748		12,097		—		18		695		797		22,993
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	475		—		216		—		—		54		—		—		745
Total	$	141,353	$	88,660	$	81,842	$	33,326	$	840	$	1,446	$	10,626	$	1,058	$	359,151

Multi-family
Pass	$	27,106	$	85,056	$	100,132	$	102,243	$	51,365	$	42,226	$	4,087	$	840	$	413,055
Pass-Watch	2,799		—		570		—		—		500		—		6		3,875
Special Mention	6,978		—		—		—		8,804		—		—		—		15,782
Substandard	—		—		—		—		—		—		—		—		—
Total	$	36,883	$	85,056	$	100,702	$	102,243	$	60,169	$	42,726	$	4,087	$	846	$	432,712

One-to-four family residential
Pass	$	33,280	$	89,297	$	85,760	$	73,658	$	59,745	$	48,968	$	59,643	$	5,516	$	455,867
Pass-Watch	1,245		1,363		625		441		520		2,160		187		143		6,684
Special Mention	—		—		—		598		122		—		—		—		720
Substandard	203		620		962		628		386		5,429		16		525		8,769
Total	$	34,728	$	91,280	$	87,347	$	75,325	$	60,773	$	56,557	$	59,846	$	6,184	$	472,040

Agricultural and farmland
Pass	$	35,985	$	37,170	$	32,799	$	29,367	$	28,589	$	9,421	$	97,650	$	798	$	271,779
Pass-Watch	275		2,683		1,424		1,454		511		844		10,689		88		17,968
Special Mention	137		609		600		—		1,100		—		938		250		3,634
Substandard	331		—		47		10		3,183		—		—		150		3,721
Total	$	36,728	$	40,462	$	34,870	$	30,831	$	33,383	$	10,265	$	109,277	$	1,286	$	297,102


(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2024		2023		2022		2021		2020		Prior
Municipal, Consumer, and other
Pass	$	67,066	$	37,483	$	14,694	$	23,992	$	13,178	$	39,562	$	22,876	$	—	$	218,851
Pass-Watch	—		41		25		13		—		764		—		—		843
Special Mention	—		—		—		—		—		4,163		23		—		4,186
Substandard	50		23		38		—		—		11,207		3		—		11,321
Total	$	67,116	$	37,547	$	14,757	$	24,005	$	13,178	$	55,696	$	22,902	$	—	$	235,201

Total by Risk Rating
Pass	$	426,474	$	529,236	$	668,952	$	533,800	$	304,303	$	292,948	$	389,547	$	12,174	$	3,157,434
Pass-Watch	12,873		7,101		20,561		26,498		2,502		13,032		25,943		1,233		109,743
Special Mention	9,041		898		901		780		10,026		4,163		1,573		250		27,632
Substandard	5,940		17,072		9,545		4,990		4,917		30,207		831		1,519		75,021
Total	$	454,328	$	554,307	$	699,959	$	566,068	$	321,748	$	340,350	$	417,894	$	15,176	$	3,369,830

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Major categories of loans are summarized as follows:


(dollars in thousands)	September 30, 2024		December 31, 2023

Commercial and industrial	$	395,598	$	427,800
Commercial real estate - owner occupied	288,838		295,842
Commercial real estate - non-owner occupied	889,188		880,681
Construction and land development	359,151		363,983
Multi-family	432,712		417,923
One-to-four family residential	472,040		491,508
Agricultural and farmland	297,102		287,294
Municipal, consumer, and other	235,201		239,386
Loans, before allowance for credit losses	3,369,830		3,404,417
Allowance for credit losses	(40,966)		(40,048)
Loans, net of allowance for credit losses	$	3,328,864	$	3,364,369

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, 2024, the economic forecast used by management anticipates an economic slowdown, but not a recession, over the next 4 quarters considered in the forecast period, with the unemployment rate increasing and GDP growth slowing and then increasing modestly. After the forecast period, the Company reverts to long-term averages over a 4-quarter reversion period. Additionally, management has made qualitative adjustments to the loss estimates to reflect other factors that influence credit losses.

The following tables detail activity in the allowance for credit losses:


	Three Months Ended September 30, 2024
(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	$	4,761	$	2,191	$	9,816	$	6,155	$	3,712	$	4,785	$	1,059	$	8,327	$	40,806

Provision for credit losses	980		36		(598)		423		78		26		226		(425)		746
Charge-offs	(734)		(6)		—		—		—		(125)		—		(236)		(1,101)
Recoveries	27		10		329		—		—		44		2		103		515
Ending balance	$	5,034	$	2,231	$	9,547	$	6,578	$	3,790	$	4,730	$	1,287	$	7,769	$	40,966

	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

	Nine Months Ended September 30, 2024
(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	$	4,980	$	2,272	$	7,714	$	5,998	$	3,837	$	5,204	$	975	$	9,068	$	40,048

Provision for credit losses	1,219		(49)		1,247		578		141		(470)		302		(985)		1,983
Charge-offs	(1,242)		(6)		—		—		(188)		(200)		—		(562)		(2,198)
Recoveries	77		14		586		2		—		196		10		248		1,133
Ending balance	$	5,034	$	2,231	$	9,547	$	6,578	$	3,790	$	4,730	$	1,287	$	7,769	$	40,966

	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

Gross charge-offs, further sorted by origination year, were as follows during the three months ended September 30, 2024 and 2023.


	Gross Charge-Offs for the Three Months Ended September 30, 2024
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2024		2023		2022		2021		2020		Prior

Commercial and industrial	$	—	$	734	$	—	$	—	$	—	$	—	$	—	$	—	$	734
Commercial real estate - owner occupied	6		—		—		—		—		—		—		—		6
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—		—
One-to-four family residential	—		—		1		—		—		124		—		—		125
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	154		3		5		—		—		—		74		—		236
Total	$	160	$	737	$	6	$	—	$	—	$	124	$	74	$	—	$	1,101

	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, further sorted by origination year, were as follows during the nine months ended September 30, 2024 and 2023.


	Gross Charge-Offs for the Nine Months Ended September 30, 2024
	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
(dollars in thousands)	2024		2023		2022		2021		2020		Prior

Commercial and industrial	$	—	$	1,063	$	75	$	—	$	—	$	11	$	93	$	—	$	1,242
Commercial real estate - owner occupied	6		—		—		—		—		—		—		—		6
Commercial real estate - non-owner occupied	—		—		—		—		—		—		—		—		—
Construction and land development	—		—		—		—		—		—		—		—		—
Multi-family	—		—		—		188		—		—		—		—		188
One-to-four family residential	—		—		8		13		4		131		44		—		200
Agricultural and farmland	—		—		—		—		—		—		—		—		—
Municipal, consumer, and other	282		59		11		—		—		—		210		—		562
Total	$	288	$	1,122	$	94	$	201	$	4	$	142	$	347	$	—	$	2,198

	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, 2024
(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	$	394,583	$	288,838	$	874,417	$	358,935	$	432,712	$	466,918	$	297,102	$	224,858	$	3,338,363
Individually evaluated for impairment	1,015		—		14,771		216		—		5,122		—		10,343		31,467
Total	$	395,598	$	288,838	$	889,188	$	359,151	$	432,712	$	472,040	$	297,102	$	235,201	$	3,369,830

Allowance for credit losses:
Collectively evaluated for impairment	$	4,840	$	2,231	$	9,004	$	6,578	$	3,790	$	4,654	$	1,287	$	5,359	$	37,743
Individually evaluated for impairment	194		—		543		—		—		76		—		2,410		3,223
Total	$	5,034	$	2,231	$	9,547	$	6,578	$	3,790	$	4,730	$	1,287	$	7,769	$	40,966

	December 31, 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	$	427,528	$	295,672	$	865,394	$	363,767	$	417,608	$	486,049	$	287,150	$	224,345	$	3,367,513
Individually evaluated for impairment	272		170		15,287		216		315		5,459		144		15,041		36,904
Total	$	427,800	$	295,842	$	880,681	$	363,983	$	417,923	$	491,508	$	287,294	$	239,386	$	3,404,417

Allowance for credit losses:
Collectively evaluated for impairment	$	4,960	$	2,272	$	6,693	$	5,998	$	3,837	$	4,957	$	975	$	6,137	$	35,829
Individually evaluated for impairment	20		—		1,021		—		—		247		—		2,931		4,219
Total	$	4,980	$	2,272	$	7,714	$	5,998	$	3,837	$	5,204	$	975	$	9,068	$	40,048


	September 30, 2024
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total

Commercial and industrial	$	—	$	973	$	42	$	1,015	$	194
Commercial real estate - owner occupied	—		—		—		—		—
Commercial real estate - non-owner occupied	14,771		—		—		14,771		543
Construction and land development	216		—		—		216		—
Multi-family	—		—		—		—		—
One-to-four family residential	5,122		—		—		5,122		76
Agricultural and farmland	—		—		—		—		—
Municipal, consumer, and other	10,329		—		14		10,343		2,410
Total	$	30,438	$	973	$	56	$	31,467	$	3,223

	December 31, 2023
	Amortized Cost								Allowance for Credit Losses
	Primary Collateral Type
(dollars in thousands)	Real Estate		Vehicles		Other		Total

Commercial and industrial	$	—	$	37	$	235	$	272	$	20
Commercial real estate - owner occupied	170		—		—		170		—
Commercial real estate - non-owner occupied	15,287		—		—		15,287		1,021
Construction and land development	216		—		—		216		—
Multi-family	315		—		—		315		—
One-to-four family residential	5,459		—		—		5,459		247
Agricultural and farmland	144		—		—		144		—
Municipal, consumer, and other	14,978		39		24		15,041		2,931
Total	$	36,569	$	76	$	259	$	36,904	$	4,219

Accrued interest on loans is excluded from the estimate of credit losses and totaled $18.9 million and $18.4 million as of September 30, 2024 and December 31, 2023, respectively.

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, 2024
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans

Commercial and industrial	$	393,371	$	1,212	$	—	$	1,015	$	395,598
Commercial real estate - owner occupied	288,838		—		—		—		288,838
Commercial real estate - non-owner occupied	887,355		—		—		1,833		889,188
Construction and land development	358,935		—		—		216		359,151
Multi-family	432,712		—		—		—		432,712
One-to-four family residential	466,096		822		—		5,122		472,040
Agricultural and farmland	296,952		150		—		—		297,102
Municipal, consumer, and other	234,942		240		5		14		235,201
Total	$	3,359,201	$	2,424	$	5	$	8,200	$	3,369,830


	December 31, 2023
	Accruing Interest
(dollars in thousands)	Current		30 - 89 Days Past Due		90+ Days Past Due		Nonaccrual		Total Loans

Commercial and industrial	$	427,300	$	228	$	—	$	272	$	427,800
Commercial real estate - owner occupied	295,672		—		—		170		295,842
Commercial real estate - non-owner occupied	878,591		255		—		1,835		880,681
Construction and land development	363,735		32		—		216		363,983
Multi-family	417,597		11		—		315		417,923
One-to-four family residential	484,969		1,735		—		4,804		491,508
Agricultural and farmland	286,820		330		—		144		287,294
Municipal, consumer, and other	239,033		252		37		64		239,386
Total	$	3,393,717	$	2,843	$	37	$	7,820	$	3,404,417

The following tables present nonaccrual loans with and without a related allowance for credit losses:


	September 30, 2024
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual

Commercial and industrial	$	522	$	493	$	1,015
Commercial real estate - owner occupied	—		—		—
Commercial real estate - non-owner occupied	—		1,833		1,833
Construction and land development	216		—		216
Multi-family	—		—		—
One-to-four family residential	350		4,772		5,122
Agricultural and farmland	—		—		—
Municipal, consumer, and other	—		14		14
Total	$	1,088	$	7,112	$	8,200

	December 31, 2023
(dollars in thousands)	Nonaccrual With Allowance for Credit Losses		Nonaccrual With No Allowance for Credit Losses		Total Nonaccrual

Commercial and industrial	$	120	$	152	$	272
Commercial real estate - owner occupied	—		170		170
Commercial real estate - non-owner occupied	188		1,647		1,835
Construction and land development	216		—		216
Multi-family	—		315		315
One-to-four family residential	14		4,790		4,804
Agricultural and farmland	—		144		144
Municipal, consumer, and other	—		64		64
Total	$	538	$	7,282	$	7,820

Credit Quality Indicators

In June 2024, the Company updated its risk rating categories to add a special mention category to provide another level of granularity in distinguishing risk levels of loans. As of June 30, 2024, $19.5 million of the special mention loans would have been considered pass-watch and $10.6 million would have been considered substandard under the previous risk rating categories.

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 thousand 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 the following major categories:

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 a special mention, substandard, or doubtful classification.

Special Mention – a special mention loan has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the assets or in the institution's credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse 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. There were no loans classified as Doubtful as of September 30, 2024 and December 31, 2023.

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


	September 30, 2024
(dollars in thousands)	Pass		Pass-Watch		Special Mention		Substandard		Total

Commercial and industrial	$	381,336	$	7,522	$	1,198	$	5,542	$	395,598
Commercial real estate - owner occupied	266,404		13,291		2,112		7,031		288,838
Commercial real estate - non-owner occupied	814,729		36,567		—		37,892		889,188
Construction and land development	335,413		22,993		—		745		359,151
Multi-family	413,055		3,875		15,782		—		432,712
One-to-four family residential	455,867		6,684		720		8,769		472,040
Agricultural and farmland	271,779		17,968		3,634		3,721		297,102
Municipal, consumer, and other	218,851		843		4,186		11,321		235,201
Total	$	3,157,434	$	109,743	$	27,632	$	75,021	$	3,369,830


	December 31, 2023
(dollars in thousands)	Pass		Pass-Watch		Substandard		Total

Commercial and industrial	$	419,494	$	7,128	$	1,178	$	427,800
Commercial real estate - owner occupied	275,649		14,072		6,121		295,842
Commercial real estate - non-owner occupied	822,012		33,283		25,386		880,681
Construction and land development	351,087		12,604		292		363,983
Multi-family	397,951		19,656		316		417,923
One-to-four family residential	472,355		6,671		12,482		491,508
Agricultural and farmland	280,867		3,071		3,356		287,294
Municipal, consumer, and other	222,474		1,721		15,191		239,386
Total	$	3,241,889	$	98,206	$	64,322	$	3,404,417

Risk ratings of loans, further sorted by origination year, are as follows as of September 30, 2024:


(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2024		2023		2022		2021		2020		Prior
Commercial and industrial
Pass	$	33,752	$	51,453	$	51,936	$	13,003	$	19,879	$	37,876	$	170,093	$	3,344	$	381,336
Pass-Watch	680		1,470		257		1,189		85		2,459		1,183		199		7,522
Special Mention	—		289		301		182		—		—		426		—		1,198
Substandard	37		1,994		1,083		772		—		—		812		844		5,542
Total	$	34,469	$	55,206	$	53,577	$	15,146	$	19,964	$	40,335	$	172,514	$	4,387	$	395,598

Commercial real estate - owner occupied
Pass	$	29,821	$	25,311	$	60,189	$	45,088	$	41,576	$	47,197	$	17,040	$	182	$	266,404
Pass-Watch	4,197		476		2,231		4,473		547		1,367		—		—		13,291
Special Mention	1,926		—		—		—		—		—		186		—		2,112
Substandard	—		1,004		561		3,580		1,348		538		—		—		7,031
Total	$	35,944	$	26,791	$	62,981	$	53,141	$	43,471	$	49,102	$	17,226	$	182	$	288,838

Commercial real estate - non-owner occupied
Pass	$	58,586	$	115,444	$	250,564	$	225,220	$	89,131	$	66,324	$	8,227	$	1,233	$	814,729
Pass-Watch	3,677		430		6,681		6,831		839		4,920		13,189		—		36,567
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	4,844		13,431		6,638		—		—		12,979		—		—		37,892
Total	$	67,107	$	129,305	$	263,883	$	232,051	$	89,970	$	84,223	$	21,416	$	1,233	$	889,188

Construction and land development
Pass	$	140,878	$	88,022	$	72,878	$	21,229	$	840	$	1,374	$	9,931	$	261	$	335,413
Pass-Watch	—		638		8,748		12,097		—		18		695		797		22,993
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	475		—		216		—		—		54		—		—		745
Total	$	141,353	$	88,660	$	81,842	$	33,326	$	840	$	1,446	$	10,626	$	1,058	$	359,151

Multi-family
Pass	$	27,106	$	85,056	$	100,132	$	102,243	$	51,365	$	42,226	$	4,087	$	840	$	413,055
Pass-Watch	2,799		—		570		—		—		500		—		6		3,875
Special Mention	6,978		—		—		—		8,804		—		—		—		15,782
Substandard	—		—		—		—		—		—		—		—		—
Total	$	36,883	$	85,056	$	100,702	$	102,243	$	60,169	$	42,726	$	4,087	$	846	$	432,712

One-to-four family residential
Pass	$	33,280	$	89,297	$	85,760	$	73,658	$	59,745	$	48,968	$	59,643	$	5,516	$	455,867
Pass-Watch	1,245		1,363		625		441		520		2,160		187		143		6,684
Special Mention	—		—		—		598		122		—		—		—		720
Substandard	203		620		962		628		386		5,429		16		525		8,769
Total	$	34,728	$	91,280	$	87,347	$	75,325	$	60,773	$	56,557	$	59,846	$	6,184	$	472,040

Agricultural and farmland
Pass	$	35,985	$	37,170	$	32,799	$	29,367	$	28,589	$	9,421	$	97,650	$	798	$	271,779
Pass-Watch	275		2,683		1,424		1,454		511		844		10,689		88		17,968
Special Mention	137		609		600		—		1,100		—		938		250		3,634
Substandard	331		—		47		10		3,183		—		—		150		3,721
Total	$	36,728	$	40,462	$	34,870	$	30,831	$	33,383	$	10,265	$	109,277	$	1,286	$	297,102


(dollars in thousands)	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term		Total
	2024		2023		2022		2021		2020		Prior
Municipal, Consumer, and other
Pass	$	67,066	$	37,483	$	14,694	$	23,992	$	13,178	$	39,562	$	22,876	$	—	$	218,851
Pass-Watch	—		41		25		13		—		764		—		—		843
Special Mention	—		—		—		—		—		4,163		23		—		4,186
Substandard	50		23		38		—		—		11,207		3		—		11,321
Total	$	67,116	$	37,547	$	14,757	$	24,005	$	13,178	$	55,696	$	22,902	$	—	$	235,201

Total by Risk Rating
Pass	$	426,474	$	529,236	$	668,952	$	533,800	$	304,303	$	292,948	$	389,547	$	12,174	$	3,157,434
Pass-Watch	12,873		7,101		20,561		26,498		2,502		13,032		25,943		1,233		109,743
Special Mention	9,041		898		901		780		10,026		4,163		1,573		250		27,632
Substandard	5,940		17,072		9,545		4,990		4,917		30,207		831		1,519		75,021
Total	$	454,328	$	554,307	$	699,959	$	566,068	$	321,748	$	340,350	$	417,894	$	15,176	$	3,369,830

Risk ratings of loans, further sorted by origination year, are as follows as of December 31, 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	$	90,931	$	58,364	$	19,283	$	26,816	$	5,269	$	29,550	$	187,579	$	1,702	$	419,494
Pass-Watch	2,025		1,340		892		144		753		471		956		547		7,128
Substandard	111		73		327		60		—		—		323		284		1,178
Total	$	93,067	$	59,777	$	20,502	$	27,020	$	6,022	$	30,021	$	188,858	$	2,533	$	427,800

Commercial real estate - owner occupied
Pass	$	27,516	$	64,229	$	55,376	$	53,634	$	32,469	$	28,876	$	13,549	$	—	$	275,649
Pass-Watch	4,061		943		5,210		1,474		1,573		811		—		—		14,072
Substandard	2,734		86		1,550		64		164		1,523		—		—		6,121
Total	$	34,311	$	65,258	$	62,136	$	55,172	$	34,206	$	31,210	$	13,549	$	—	$	295,842

Commercial real estate - non-owner occupied
Pass	$	121,536	$	240,323	$	237,953	$	88,894	$	82,094	$	39,228	$	10,274	$	1,710	$	822,012
Pass-Watch	810		6,893		7,013		353		4,230		154		13,585		245		33,283
Substandard	13,376		124		286		—		2,410		9,190		—		—		25,386
Total	$	135,722	$	247,340	$	245,252	$	89,247	$	88,734	$	48,572	$	23,859	$	1,955	$	880,681

Construction and land development
Pass	$	153,499	$	119,005	$	56,954	$	5,596	$	2,662	$	796	$	12,050	$	525	$	351,087
Pass-Watch	153		10,750		—		—		—		—		163		1,538		12,604
Substandard	—		216		—		—		—		76		—		—		292
Total	$	153,652	$	129,971	$	56,954	$	5,596	$	2,662	$	872	$	12,213	$	2,063	$	363,983

Multi-family
Pass	$	83,898	$	81,507	$	115,402	$	53,126	$	34,053	$	23,570	$	5,904	$	491	$	397,951
Pass-Watch	3,111		7,197		—		8,821		51		468		—		8		19,656
Substandard	—		—		316		—		—		—		—		—		316
Total	$	87,009	$	88,704	$	115,718	$	61,947	$	34,104	$	24,038	$	5,904	$	499	$	417,923

One-to-four family residential
Pass	$	105,337	$	91,636	$	82,289	$	64,094	$	21,986	$	44,241	$	57,248	$	5,524	$	472,355
Pass-Watch	2,382		286		940		486		212		1,804		203		358		6,671
Substandard	1,507		1,527		623		646		1,037		4,166		64		2,912		12,482
Total	$	109,226	$	93,449	$	83,852	$	65,226	$	23,235	$	50,211	$	57,515	$	8,794	$	491,508

Agricultural and farmland
Pass	$	52,766	$	37,600	$	36,604	$	33,960	$	8,910	$	7,756	$	100,486	$	2,785	$	280,867
Pass-Watch	953		361		425		30		71		719		172		340		3,071
Substandard	—		—		13		3,199		—		144		—		—		3,356
Total	$	53,719	$	37,961	$	37,042	$	37,189	$	8,981	$	8,619	$	100,658	$	3,125	$	287,294

Municipal, Consumer, and other
Pass	$	43,575	$	57,404	$	27,904	$	14,342	$	1,016	$	42,499	$	35,734	$	—	$	222,474
Pass-Watch	9		6		13		—		—		1,693		—		—		1,721
Substandard	51		103		2		6		8		15,012		8		1		15,191
Total	$	43,635	$	57,513	$	27,919	$	14,348	$	1,024	$	59,204	$	35,742	$	1	$	239,386

Total by Risk Rating
Pass	$	679,058	$	750,068	$	631,765	$	340,462	$	188,459	$	216,516	$	422,824	$	12,737	$	3,241,889
Pass-Watch	13,504		27,776		14,493		11,308		6,890		6,120		15,079		3,036		98,206
Substandard	17,779		2,129		3,117		3,975		3,619		30,111		395		3,197		64,322
Total	$	710,341	$	779,973	$	649,375	$	355,745	$	198,968	$	252,747	$	438,298	$	18,970	$	3,404,417

Modifications

There were no loan modifications to borrowers in financial distress during the three and nine months ended September 30, 2024 and 2023. There were no modified loans to borrowers in financial distress outstanding as of September 30, 2024 and December 31, 2023.

Pledged Loans

As of September 30, 2024 and December 31, 2023, the Company pledged loans totaling $1.88 billion and $1.20 billion, respectively, to the Federal Home Loan Bank of Chicago (“FHLB”) to secure available FHLB advance borrowing capacity.

DEPOSITS (Tables)

9 Months Ended

Sep. 30, 2024

Deposits [Abstract]

Schedule of company's interest-bearing deposits

The Company’s deposits are summarized below:


(dollars in thousands)	September 30, 2024		December 31, 2023

Noninterest-bearing deposits	$	1,008,359	$	1,072,407
Interest-bearing deposits:
Interest-bearing demand	1,076,445		1,145,092
Money market	795,150		803,381
Savings	566,783		608,424
Time	803,964		627,253
Brokered	29,999		144,880
Total interest-bearing deposits	3,272,341		3,329,030
Total deposits	$	4,280,700	$	4,401,437

Schedule of interest expense on deposits

The components of interest expense on deposits were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023

Interest-bearing demand	$	1,408	$	761	$	4,148	$	1,902
Money market	4,726		2,026		14,193		4,467
Savings	396		249		1,232		616
Time	7,702		3,275		20,744		6,011
Brokered	417		900		2,058		912
Total interest expense on deposits	$	14,649	$	7,211	$	42,375	$	13,908

- 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 e
-Publisher SEC

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

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

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph a
-Subparagraph (5)
-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 (3)
-Publisher SEC

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph a
-Subparagraph (2)
-Publisher SEC

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph a
-Subparagraph (1)
-Publisher SEC

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph a
-Publisher SEC

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph f
-Subparagraph (1)
-Publisher SEC

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph f
-Subparagraph (2)
-Publisher SEC

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph f
-Subparagraph (2)(i)
-Publisher SEC

Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph f
-Subparagraph (2)(iv)
-Publisher SEC

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph f
-Subparagraph (2)(iii)
-Publisher SEC

Reference 15: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph f
-Subparagraph (2)(ii)
-Publisher SEC

+ Details

SECURITIES - Investments in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Unrealized Loss
Less than 12 Months	$ (126)	$ (631)
12 Months or More	(49,279)	(71,631)
Total	(49,405)	(72,262)
Fair Value
Less than 12 Months	25,281	21,648
12 Months or More	615,850	720,834
Total	641,131	742,482
U.S. Treasury
Unrealized Loss
Less than 12 Months	0	0
12 Months or More	(7,320)	(11,093)
Total	(7,320)	(11,093)
Fair Value
Less than 12 Months	0	0
12 Months or More	132,372	148,622
Total	132,372	148,622
U.S. government agency
Unrealized Loss
Less than 12 Months	(5)	(2)
12 Months or More	(1,964)	(3,260)
Total	(1,969)	(3,262)
Fair Value
Less than 12 Months	2,995	168
12 Months or More	49,468	51,910
Total	52,463	52,078
Municipal
Unrealized Loss
Less than 12 Months	0	(26)
12 Months or More	(16,185)	(23,473)
Total	(16,185)	(23,499)
Fair Value
Less than 12 Months	0	4,749
12 Months or More	135,209	194,287
Total	135,209	199,036
Agency residential
Unrealized Loss
Less than 12 Months	(116)	(163)
12 Months or More	(10,193)	(14,555)
Total	(10,309)	(14,718)
Fair Value
Less than 12 Months	19,691	9,354
12 Months or More	137,916	156,785
Total	157,607	166,139
Agency commercial
Unrealized Loss
Less than 12 Months	(5)	(26)
12 Months or More	(10,224)	(14,179)
Total	(10,229)	(14,205)
Fair Value
Less than 12 Months	2,595	3,016
12 Months or More	116,421	123,404
Total	119,016	126,420
Corporate
Unrealized Loss
Less than 12 Months	0	(414)
12 Months or More	(3,393)	(5,071)
Total	(3,393)	(5,485)
Fair Value
Less than 12 Months	0	4,361
12 Months or More	44,464	45,826
Total	$ 44,464	$ 50,187

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2024

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, 2024		December 31, 2023

Commitments to extend credit	$	873,649	$	869,013
Standby letters of credit	23,560		23,732

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 Lending-related 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 $4.1 million and $3.8 million as of September 30, 2024 and December 31, 2023, respectively.

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.

DeBaere, et al v. Heartland Bank and Trust Company

The Bank was 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 was 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.

Definitive settlement agreements reflecting the terms of the agreement in principle were approved by the Court on December 15, 2023 in the DeBaere, et al case and on February 16, 2024 in the Miller, et al case. The Bank made the one-time cash payments totaling $3.4 million during the fourth 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 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.

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 second 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.

On March 29, 2024, the Bank reached an agreement in principle to settle this case in which the Bank would make a one-time cash payment of $0.3 million, without admitting fault, to release the Bank from further liability and claims in the case.

A definitive settlement agreement reflecting the terms of the agreement in principle was approved by the Court on July 9, 2024. The Bank made the one-time cash payment of $0.3 million during the third quarter of 2024. The settlement does 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 case. The Bank has agreed to the settlement to avoid the cost, risks, and distraction of continued litigation. The Company believes the settlement is in the best interests of the Company and its shareholders.

An initial accrual of $0.2 million was recorded during the fourth quarter of 2023, reflecting management's best estimate at that time, and an additional $0.1 million accrual was recorded during the first quarter of 2024. As of December 31, 2023, the Company had $0.2 million accrued related to this matter.

Heartland Bank and Trust Company v. Meadows Mennonite Retirement Community Association, Inc.

This lawsuit arises out of a suit filed in the Circuit Court of Woodford County, Illinois, (the "Trial Court") by the Bank for breach of a note and commercial security agreement. The defendant, Meadows Mennonite Retirement Community Association, Inc. ("Meadows"), a beneficiary of a trust for which Bank was trustee, filed a counterclaim for rescission of the note seeking compensatory and punitive damages, including attorneys’ fees. In September 2024, the Appellate Court of Illinois Fourth District (the "Appellate Court") entered an order directing that summary judgment should be entered in favor of Meadows and against the Bank, rescinding the note and commercial security agreement. The Appellate Court remanded the case to the Trial Court which will now determine Meadows' compensatory and punitive damages, including reasonable attorneys’ fees.

The Bank intends to vigorously defend the lawsuit. However, the Company believes an unfavorable outcome is reasonably possible at this time, as that term is used in assessing loss contingencies. The Company is unable to predict when the matter will be resolved or potential costs or damages to be incurred.

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Stockholders' Equity
Debt securities held-to-maturity	$ 463,259	$ 466,496
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)	32,827,039	32,730,698
Common stock, outstanding (in shares)	31,559,366	31,695,828
Treasury stock, (in shares)	1,267,673	1,034,870

SECURITIES - Sale and Gain (loss) on securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Net unrealized gains (losses) on equity securities:
Readily determinable fair value	$ 136	$ (46)	$ 24	$ 77
No readily determinable fair value	0	0	0	(138)
Unrealized gains (losses) on equity securities	$ 136	$ (46)	$ 24	$ (61)

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Loans, including fees:
Taxable	$ 53,650	$ 49,640	$ 157,753	$ 138,948
Federally tax exempt	1,133	1,072	3,324	3,064
Debt securities:
Taxable	6,453	6,402	18,972	19,460
Federally tax exempt	502	978	1,620	3,337
Interest-bearing deposits in bank	2,230	714	6,752	2,234
Other interest and dividend income	149	235	481	545
Total interest and dividend income	64,117	59,041	188,902	167,588
INTEREST EXPENSE
Deposits	14,649	7,211	42,375	13,908
Securities sold under agreements to repurchase	134	35	415	107
Borrowings	119	2,108	365	5,594
Subordinated notes	470	470	1,409	1,409
Junior subordinated debentures issued to capital trusts	1,012	938	2,889	2,582
Total interest expense	16,384	10,762	47,453	23,600
Net interest income	47,733	48,279	141,449	143,988
PROVISION FOR CREDIT LOSSES	603	480	2,306	6,460
Net interest income after provision for credit losses	47,130	47,799	139,143	137,528
NONINTEREST INCOME
Mortgage servicing	1,113	1,169	3,279	3,522
Mortgage servicing rights fair value adjustment	(1,488)	23	(1,505)	(460)
Gains on sale of mortgage loans	461	476	1,202	1,125
Realized gains (losses) on sales of securities	0	(813)	(3,382)	(1,820)
Unrealized gains (losses) on equity securities	136	(46)	24	(61)
Gains (losses) on foreclosed assets	(44)	550	15	443
Gains (losses) on other assets	(2)	52	(637)	161
Income on bank owned life insurance	170	153	500	415
Other noninterest income	855	742	2,499	2,362
Total noninterest income	8,705	9,490	23,941	26,841
NONINTEREST EXPENSE
Salaries	16,325	15,644	49,346	51,715
Employee benefits	2,997	2,616	8,662	7,658
Occupancy of bank premises	2,695	2,573	7,520	7,460
Furniture and equipment	446	667	1,544	2,135
Data processing	2,640	2,581	8,171	9,787
Marketing and customer relations	1,380	1,679	3,372	3,874
Amortization of intangible assets	710	720	2,130	1,950
FDIC insurance	572	512	1,697	1,705
Loan collection and servicing	476	345	1,403	971
Foreclosed assets	19	76	78	234
Other noninterest expense	3,062	3,258	9,176	13,088
Total noninterest expense	31,322	30,671	93,099	100,577
INCOME BEFORE INCOME TAX EXPENSE	24,513	26,618	69,985	63,792
INCOME TAX EXPENSE	6,333	6,903	18,477	16,396
NET INCOME	$ 18,180	$ 19,715	$ 51,508	$ 47,396
EARNINGS PER SHARE - BASIC (in dollars per share)	$ 0.58	$ 0.62	$ 1.63	$ 1.50
EARNINGS PER SHARE - DILUTED (in dollars per share)	$ 0.57	$ 0.62	$ 1.62	$ 1.49
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING (in shares)	31,559,366	31,829,250	31,600,442	31,598,650
Card income
NONINTEREST INCOME
Revenue	$ 2,753	$ 2,763	$ 8,254	$ 8,326
Wealth management fees
NONINTEREST INCOME
Revenue	2,670	2,381	7,840	6,998
Service charges on deposit accounts
NONINTEREST INCOME
Revenue	$ 2,081	$ 2,040	$ 5,852	$ 5,830

SECURITIES - Amortized cost and Fair values of securities with maturities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Amortized Cost
Due in 1 year or less	$ 50,398
Due after 1 year through 5 years	184,468
Due after 5 years through 10 years	157,851
Due after 10 years	21,900
Total	758,481
Fair Value
Due in 1 year or less	49,930
Due after 1 year through 5 years	174,898
Due after 5 years through 10 years	142,184
Due after 10 years	18,950
Fair Value	710,303	$ 759,461
Amortized Cost
Due in 1 year or less	4,891
Due after 1 year through 5 years	49,208
Due after 5 years through 10 years	68,427
Due after 10 years	2,258
Total	505,075
Fair Value
Due in 1 year or less	4,873
Due after 1 year through 5 years	47,631
Due after 5 years through 10 years	64,225
Due after 10 years	2,239
Fair Value	463,259	466,496
Agency residential
Amortized Cost
Total	212,551
Fair Value
Fair Value	203,249	173,984
Amortized Cost
Total	88,232
Fair Value
Fair Value	84,658	90,259
Agency commercial
Amortized Cost
Total	131,313
Fair Value
Fair Value	121,092	127,012
Amortized Cost
Total	292,059
Fair Value
Fair Value	$ 259,633	$ 257,408

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2024

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 were as follows:


	September 30, 2024				December 31, 2023
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value

Fair value recorded in other assets	$	7,000	$	71	$	17,000	$	322

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 was 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)				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)	2024		2023		2024		2023

Designated as cash flow hedges:
Junior subordinated debentures interest expense	$	55	$	131	$	305	$	334

Summary of interest rate swap agreements not designated as hedging instruments

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


	September 30, 2024				December 31, 2023
(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	80,621		3,651		94,497		6,227
Total fair value recorded in other assets	$	80,621	$	3,651	$	94,497	$	6,227

Fair value recorded in other liabilities:
Interest rate swaps with a commercial borrower counterparty	$	80,621	$	(3,651)	$	94,497	$	(6,227)
Interest rate swaps with a financial institution counterparty	—		—		—		—
Total fair value recorded in other liabilities	$	80,621	$	(3,651)	$	94,497	$	(6,227)

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 was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023

Not designated as hedging instruments:
Gross gains	$	5,554	$	2,510	$	8,375	$	6,950
Gross losses	(5,554)		(2,510)		(8,375)		(6,950)
Net gains (losses)	$	—	$	—	$	—	$	—

LOAN SERVICING (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
LOAN SERVICING (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Servicing Asset at Fair Value, Amount [Roll Forward]
Beginning balance			$ 19,001
Ending balance	$ 17,496		17,496
Mortgage Loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Mortgage loans serviced for others	1,580,000		1,580,000		$ 1,660,000
Servicing Asset at Fair Value, Amount [Roll Forward]
Beginning balance	18,984	$ 20,133	19,001	$ 10,147
Acquired	0	0	0	10,469
Capitalized servicing rights	198	227	538	526
Fair value adjustments attributable to payments and principal reductions	(598)	(631)	(1,569)	(1,621)
Fair value adjustments attributable to changes in valuation inputs and assumptions	(1,088)	427	(474)	635
Ending balance	$ 17,496	$ 20,156	$ 17,496	$ 20,156

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Summary of assets measured at fair value on a recurring basis

The following tables summarize assets and liabilities measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023 by level within the fair value hierarchy:


	September 30, 2024
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Debt securities available-for-sale:
U.S. Treasury	$	—	$	132,372	$	—	$	132,372
U.S. government agency	—		57,299		—		57,299
Municipal	—		137,872		—		137,872
Mortgage-backed:
Agency residential	—		203,249		—		203,249
Agency commercial	—		121,092		—		121,092
Corporate	—		58,419		—		58,419
Equity securities with readily determinable fair values	3,364		—		—		3,364
Mortgage servicing rights	—		—		17,496		17,496
Derivative financial assets	—		3,722		—		3,722
Derivative financial liabilities	—		3,651		—		3,651


	December 31, 2023
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Debt securities available-for-sale:
U.S. Treasury	$	148,622	$	—	$	—	$	148,622
U.S. government agency	—		52,097		—		52,097
Municipal	—		205,557		—		205,557
Mortgage-backed:
Agency residential	—		173,984		—		173,984
Agency commercial	—		127,012		—		127,012
Corporate	—		52,189		—		52,189
Equity securities with readily determinable fair values	3,360		—		—		3,360
Mortgage servicing rights	—		—		19,001		19,001
Derivative financial assets	—		6,549		—		6,549
Derivative financial liabilities	—		6,227		—		6,227

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, 2024

Fair Value

Valuation Technique

Unobservable Inputs

Range
(Weighted Average)

Mortgage servicing rights

17,496

Discounted cash flows

Constant pre-payment rates (CPR)

1.9% to 94.3% (9.1%)

Discount rate

9.0% to 15.3% (9.5%)

December 31, 2023

Fair Value

Valuation Technique

Unobservable Inputs

Range
(Weighted Average)

Mortgage servicing rights

19,001

Discounted cash flows

Constant pre-payment rates (CPR)

6.2% to 49.4% (8.4%)

Discount rate

9.0% to 37.3% (9.6%)

Summary of assets measured at fair value on a nonrecurring basis

The following tables summarize assets measured at fair value on a nonrecurring basis as of September 30, 2024 and December 31, 2023 by level within the fair value hierarchy:


	September 30, 2024
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Loans held for sale	$	—	$	2,959	$	—	$	2,959
Collateral-dependent loans	—		—		28,244		28,244
Bank premises held for sale	—		—		317		317
Foreclosed assets	—		—		376		376


	December 31, 2023
(dollars in thousands)	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

Loans held for sale	$	—	$	2,318	$	—	$	2,318
Collateral-dependent loans	—		—		32,685		32,685

Foreclosed assets	—		—		852		852

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, 2024

Fair Value

Valuation
Technique

Unobservable Inputs

Range
(Weighted Average)

Collateral-dependent loans

28,244

Appraisal of collateral

Appraisal adjustments

Not meaningful

Bank premises held for sale

317

Appraisal

Appraisal adjustments

7% (7%)

Foreclosed assets

376

Appraisal

Appraisal adjustments

7% (7%)

December 31, 2023

Fair Value

Valuation Technique

Unobservable Inputs

Range

(Weighted Average)

Collateral-dependent loans

32,685

Appraisal of collateral

Appraisal adjustments

Not meaningful

Foreclosed assets

852

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 other financial instruments:


(dollars in thousands)	Fair Value Hierarchy Level	September 30, 2024				December 31, 2023
		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value

Financial assets:
Cash and cash equivalents	Level 1	$	179,671	$	179,671	$	141,252	$	141,252
Debt securities held-to-maturity	Level 2	505,075		463,259		521,439		466,496
Restricted stock	Level 3	5,086		5,086		7,160		7,160
Loans, net	Level 3	3,328,864		3,352,088		3,364,369		3,349,540
Investments in unconsolidated subsidiaries	Level 3	1,614		1,614		1,614		1,614
Accrued interest receivable	Level 2	24,160		24,160		24,534		24,534

Financial liabilities:
Time deposits	Level 3	803,964		799,328		627,253		619,682
Brokered time deposits	Level 3	29,999		30,003		144,880		144,944
Securities sold under agreements to repurchase	Level 2	29,029		29,029		42,442		42,442
FHLB advances	Level 3	13,435		13,414		12,623		12,621
Subordinated notes	Level 3	39,533		37,931		39,474		36,993
Junior subordinated debentures	Level 3	52,834		47,686		52,789		48,529
Accrued interest payable	Level 2	6,677		6,677		6,969		6,969

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, 2024	Dec. 31, 2023
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount	$ 7,000	$ 17,000
Fair value recorded in other assets	$ 71	$ 322

- Definition

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

+ References + Details

DERIVATIVE FINANCIAL INSTRUMENTS- Summary of the effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income (Details) - Interest Rate Swap - Not Designated as Hedging Instrument - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
DERIVATIVE FINANCIAL INSTRUMENTS
Gross gains	$ 5,554	$ 2,510	$ 8,375	$ 6,950
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
Gross losses	$ (5,554)	$ (2,510)	$ (8,375)	$ (6,950)
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
Net gains (losses)	$ 0	$ 0	$ 0	$ 0

SECURITIES - Equity securities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Readily Determinable Fair Value
Initial cost	$ 3,124	$ 3,143
Cumulative net unrealized gains (losses)	240	217
Carrying value	3,364	3,360
No Readily Determinable Fair Value
Initial cost	2,973	2,840
Cumulative net unrealized gains (losses)	(335)	(335)
Carrying value	$ 2,638	$ 2,505

- Definition

Amount of investment in equity security measured at fair value with change in fair value recognized in net income (FV-NI).

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 944
-SubTopic 80
-Name Accounting Standards Codification
-Section 55
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480078/944-80-55-14

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 944
-SubTopic 80
-Name Accounting Standards Codification
-Section 55
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480078/944-80-55-9

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03(a)(1)(b))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478777/944-210-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 210
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 825
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482736/825-10-45-1A

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03(a)(1)(6))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478777/944-210-S99-1

+ Details

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2024	Oct. 23, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Current Fiscal Year End Date	--12-31
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	309
Local Phone Number	662-4444
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		31,559,366
Amendment Flag	false
Entity Central Index Key	0000775215
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2024

REGULATORY CAPITAL

9 Months Ended

Sep. 30, 2024

Banking and Thrift, Other Disclosure [Abstract]

REGULATORY CAPITAL

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. The capital conservation buffer is 2.5% of risk-weighted assets.

As of September 30, 2024 and December 31, 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 were as follows:


	September 30, 2024
	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)	$	637,198	16.54	%	$	308,213	8.00	%	N/A		N/A
Tier 1 Capital (to Risk Weighted Assets)	557,890		14.48		231,160		6.00		N/A		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	506,670		13.15		173,370		4.50		N/A		N/A
Tier 1 Capital (to Average Assets)	557,890		11.16		199,919		4.00		N/A		N/A

Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	$	621,289	16.13	%	$	308,063	8.00	%	$	385,079	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	581,514		15.10		231,048		6.00		308,063		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	581,514		15.10		173,286		4.50		250,302		6.50
Tier 1 Capital (to Average Assets)	581,514		11.64		199,790		4.00		249,738		5.00


	December 31, 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)	$	603,234	15.33	%	$	314,814	8.00	%	N/A		N/A
Tier 1 Capital (to Risk Weighted Assets)	527,964		13.42		236,110		6.00		N/A		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	476,789		12.12		177,083		4.50		N/A		N/A
Tier 1 Capital (to Average Assets)	527,964		10.49		201,231		4.00		N/A		N/A

Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	$	586,604	14.92	%	$	314,496	8.00	%	$	393,119	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	550,808		14.01		235,872		6.00		314,496		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	550,808		14.01		176,904		4.50		255,528		6.50
Tier 1 Capital (to Average Assets)	550,808		10.96		201,063		4.00		251,329		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

DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash pledged	$ 0.4	$ 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

DERIVATIVE FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2024

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 were as follows:


	September 30, 2024				December 31, 2023
(dollars in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value

Fair value recorded in other assets	$	7,000	$	71	$	17,000	$	322

As of September 30, 2024, the interest rate swap agreement designated as a cash flow hedge matures in April 2025. As of September 30, 2024 and December 31, 2023, counterparties had cash pledged and held on deposit by the Company of $0.4 million and $0.6 million, respectively.

The effect of interest rate swap agreements designated as cash flow hedges on the consolidated statements of income was 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)				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)	2024		2023		2024		2023

Designated as cash flow hedges:
Junior subordinated debentures interest expense	$	55	$	131	$	305	$	334

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 were as follows:


	September 30, 2024				December 31, 2023
(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	80,621		3,651		94,497		6,227
Total fair value recorded in other assets	$	80,621	$	3,651	$	94,497	$	6,227

Fair value recorded in other liabilities:
Interest rate swaps with a commercial borrower counterparty	$	80,621	$	(3,651)	$	94,497	$	(6,227)
Interest rate swaps with a financial institution counterparty	—		—		—		—
Total fair value recorded in other liabilities	$	80,621	$	(3,651)	$	94,497	$	(6,227)

As of September 30, 2024, the interest rate swap agreements not designated as hedging instruments had contractual maturities between 2027 and 2035.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023

Not designated as hedging instruments:
Gross gains	$	5,554	$	2,510	$	8,375	$	6,950
Gross losses	(5,554)		(2,510)		(8,375)		(6,950)
Net gains (losses)	$	—	$	—	$	—	$	—

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
NET INCOME	$ 18,180	$ 19,715	$ 51,508	$ 47,396

- 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 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-6

Reference 2: 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 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 805
-SubTopic 60
-Name Accounting Standards Codification
-Section 65
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147476176/805-60-65-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 323
-Name Accounting Standards Codification
-Section 65
-Paragraph 2
-Subparagraph (g)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478666/740-323-65-2

Reference 5: 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))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483621/220-10-S99-2

Reference 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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 15: 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 16: 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 17: 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/1943274/2147479168/946-830-55-10

Reference 18: 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/1943274/2147479105/946-220-45-7

Reference 19: 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/1943274/2147477250/944-220-S99-1

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(9))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1

Reference 21: 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/1943274/2147479134/946-220-S99-3

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(i))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 23: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(ii))
-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 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1A

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)(i))
-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)(4)(iii)(A))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 29: 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 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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 37: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478524/942-220-S99-1

+ Details

STOCK-BASED COMPENSATION PLANS - Summary of stock-based compensation expense (benefit) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	$ 444	$ 611	$ 1,270	$ 1,516
Restricted stock units
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	263	313	798	907
Performance restricted stock units
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	117	295	467	652
Total awards classified as equity
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	380	608	1,265	1,559
Stock appreciation rights
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	$ 64	$ 3	$ 5	$ (43)

- 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 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(ii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(01)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(02)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(04)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(01)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(02)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(2)(iii)(03)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(ii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 26: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 27: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(iv)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (f)(2)(v)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

+ Details

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Amortized cost of collateralized loans (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	$ 31,467	$ 36,904
Allowance for Credit Losses	3,223	4,219
Financing receivable, accrued interest, after allowance for credit loss	18,900	18,400
Collateral-dependent loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	31,467	36,904
Allowance for Credit Losses	3,223	4,219
Real Estate
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	30,438	36,569
Vehicles
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	973	76
Other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	56	259
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	1,015	272
Allowance for Credit Losses	194	20
Commercial and industrial \| Collateral-dependent loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	1,015	272
Allowance for Credit Losses	194	20
Commercial and industrial \| Real Estate
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	0
Commercial and industrial \| Vehicles
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	973	37
Commercial and industrial \| Other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	42	235
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	170
Allowance for Credit Losses	0	0
Commercial real estate - owner occupied \| Collateral-dependent loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	170
Allowance for Credit Losses	0	0
Commercial real estate - owner occupied \| Real Estate
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	170
Commercial real estate - owner occupied \| Vehicles
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	0
Commercial real estate - owner occupied \| Other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	0
Commercial real estate - non-owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	14,771	15,287
Allowance for Credit Losses	543	1,021
Commercial real estate - non-owner occupied \| Collateral-dependent loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	14,771	15,287
Allowance for Credit Losses	543	1,021
Commercial real estate - non-owner occupied \| Real Estate
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	14,771	15,287
Commercial real estate - non-owner occupied \| Vehicles
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	0
Commercial real estate - non-owner occupied \| Other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	0
Construction and land development
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	216	216
Allowance for Credit Losses	0	0
Construction and land development \| Collateral-dependent loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	216	216
Allowance for Credit Losses	0	0
Construction and land development \| Real Estate
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	216	216
Construction and land development \| Vehicles
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	0
Construction and land development \| Other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	0
Multi-family
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	315
Allowance for Credit Losses	0	0
Multi-family \| Collateral-dependent loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	315
Allowance for Credit Losses	0	0
Multi-family \| Real Estate
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	315
Multi-family \| Vehicles
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	0
Multi-family \| Other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	0
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	5,122	5,459
Allowance for Credit Losses	76	247
One-to-four family residential \| Collateral-dependent loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	5,122	5,459
Allowance for Credit Losses	76	247
One-to-four family residential \| Real Estate
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	5,122	5,459
One-to-four family residential \| Vehicles
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	0
One-to-four family residential \| Other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	0
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	144
Allowance for Credit Losses	0	0
Agricultural and farmland \| Collateral-dependent loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	144
Allowance for Credit Losses	0	0
Agricultural and farmland \| Real Estate
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	144
Agricultural and farmland \| Vehicles
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	0
Agricultural and farmland \| Other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	0
Municipal, consumer, and other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	10,343	15,041
Allowance for Credit Losses	2,410	2,931
Municipal, consumer, and other \| Collateral-dependent loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	10,343	15,041
Allowance for Credit Losses	2,410	2,931
Municipal, consumer, and other \| Real Estate
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	10,329	14,978
Municipal, consumer, and other \| Vehicles
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	0	39
Municipal, consumer, and other \| Other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Amortized Cost	$ 14	$ 24

FORECLOSED ASSETS - Additional Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($) loan	Sep. 30, 2023 USD ($) loan	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
FORECLOSED ASSETS
Carrying value of foreclosed asset	$ 376	$ 1,519	$ 320	$ 852	$ 3,080	$ 3,030
One-to-four family residential real estate property
FORECLOSED ASSETS
Carrying value of foreclosed asset	$ 200			100
Number of loans in the process of foreclosure \| loan	24	16
Loan amount in the process of foreclosure	$ 1,900			$ 1,200

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Stockholders' Equity [Abstract]
Cash dividends (in dollars per share)	$ 0.19	$ 0.17	$ 0.57	$ 0.51

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator:
Net income	$ 18,180	$ 19,715	$ 51,508	$ 47,396
Earnings allocated to participating securities	0	(10)	0	(26)
Numerator for earnings per share - basic	18,180	19,705	51,508	47,370
Numerator for earnings per share - diluted	$ 18,180	$ 19,705	$ 51,508	$ 47,370
Denominator:
Weighted average shares of common stock outstanding (in shares)	31,559,366	31,829,250	31,600,442	31,598,650
Dilutive effect of outstanding restricted stock units (in shares)	118,180	137,187	115,266	102,574
Weighted average common shares outstanding, including all dilutive potential shares (in shares)	31,677,546	31,966,437	31,715,708	31,701,224
Earnings per share - BASIC (in dollars per share)	$ 0.58	$ 0.62	$ 1.63	$ 1.50
Earnings per share - DILUTED (in dollars per share)	$ 0.57	$ 0.62	$ 1.62	$ 1.49

SECURITIES - Sale of debt securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales	$ 0	$ 39,436	$ 66,812	$ 185,280
Gross realized gains	0	0	0	0
Gross realized losses	$ 0	$ (813)	$ (3,382)	$ (1,820)

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Past Due Status (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	$ 3,369,830	$ 3,404,417
Total Nonaccrual	8,200	7,820
Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	3,359,201	3,393,717
30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	2,424	2,843
90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	5	37
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	395,598	427,800
Total Nonaccrual	1,015	272
Commercial and industrial \| Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	393,371	427,300
Commercial and industrial \| 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	1,212	228
Commercial and industrial \| 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	288,838	295,842
Total Nonaccrual	0	170
Commercial real estate - owner occupied \| Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	288,838	295,672
Commercial real estate - owner occupied \| 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Commercial real estate - owner occupied \| 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	889,188	880,681
Total Nonaccrual	1,833	1,835
Commercial real estate - non-owner occupied \| Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	887,355	878,591
Commercial real estate - non-owner occupied \| 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	255
Commercial real estate - non-owner occupied \| 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	359,151	363,983
Total Nonaccrual	216	216
Construction and land development \| Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	358,935	363,735
Construction and land development \| 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	32
Construction and land development \| 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	432,712	417,923
Total Nonaccrual	0	315
Multi-family \| Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	432,712	417,597
Multi-family \| 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	11
Multi-family \| 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	472,040	491,508
Total Nonaccrual	5,122	4,804
One-to-four family residential \| Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	466,096	484,969
One-to-four family residential \| 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	822	1,735
One-to-four family residential \| 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	0	0
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	297,102	287,294
Total Nonaccrual	0	144
Agricultural and farmland \| Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	296,952	286,820
Agricultural and farmland \| 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	150	330
Agricultural and farmland \| 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	235,201	239,386
Total Nonaccrual	14	64
Municipal, consumer, and other \| Current
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	234,942	239,033
Municipal, consumer, and other \| 30 - 89 Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	240	252
Municipal, consumer, and other \| 90+ Days Past Due
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	$ 5	$ 37

SECURITIES - Narrative (Details)	3 Months Ended	6 Months Ended	9 Months Ended
SECURITIES - Narrative (Details)	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) security	Dec. 31, 2023 USD ($)
SECURITIES
Number of securities in an unrealized loss position for a period of twelve months or more \| security			627
Number of securities in an unrealized loss position for a period of less than twelve months \| security			13
Allowance for credit losses			$ 0	$ 0
Debt securities, available-for-sale, accrued interest			5,000,000.0	6,000,000.0
Impairments of downward adjustments			200,000
Adjustment to carrying value of equity securities with no readily determinable fair value			200,000
Upward adjustment on equity securities with no readily determinable fair value			$ 0	0
Municipal
SECURITIES
Percentage of securities with general obligation issue			73.00%
Allowance for credit losses			$ 0	0
Corporate
SECURITIES
Allowance for credit losses			0	0
Allowance for credit loss	$ (800,000)	$ 800,000
Assets Pledged
SECURITIES
Carrying value of securities pledged to secure public and trust deposits			$ 549,300,000	$ 419,400,000

REGULATORY CAPITAL (Tables)

9 Months Ended

Sep. 30, 2024

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 were as follows:


	September 30, 2024
	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)	$	637,198	16.54	%	$	308,213	8.00	%	N/A		N/A
Tier 1 Capital (to Risk Weighted Assets)	557,890		14.48		231,160		6.00		N/A		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	506,670		13.15		173,370		4.50		N/A		N/A
Tier 1 Capital (to Average Assets)	557,890		11.16		199,919		4.00		N/A		N/A

Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	$	621,289	16.13	%	$	308,063	8.00	%	$	385,079	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	581,514		15.10		231,048		6.00		308,063		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	581,514		15.10		173,286		4.50		250,302		6.50
Tier 1 Capital (to Average Assets)	581,514		11.64		199,790		4.00		249,738		5.00


	December 31, 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)	$	603,234	15.33	%	$	314,814	8.00	%	N/A		N/A
Tier 1 Capital (to Risk Weighted Assets)	527,964		13.42		236,110		6.00		N/A		N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)	476,789		12.12		177,083		4.50		N/A		N/A
Tier 1 Capital (to Average Assets)	527,964		10.49		201,231		4.00		N/A		N/A

Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets)	$	586,604	14.92	%	$	314,496	8.00	%	$	393,119	10.00	%
Tier 1 Capital (to Risk Weighted Assets)	550,808		14.01		235,872		6.00		314,496		8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets)	550,808		14.01		176,904		4.50		255,528		6.50
Tier 1 Capital (to Average Assets)	550,808		10.96		201,063		4.00		251,329		5.00

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Sep. 30, 2024

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, 2024
Balance, June 30, 2024	$	(46,658)	$	(7,841)	$	(157)	$	(54,656)
Other comprehensive income (loss) before reclassifications	21,334		—		(24)		21,310
Reclassifications	—		506		(55)		451
Other comprehensive income (loss), before tax	21,334		506		(79)		21,761
Income tax expense (benefit)	5,974		142		(22)		6,094
Other comprehensive income (loss), after tax	15,360		364		(57)		15,667
Balance, September 30, 2024	$	(31,298)	$	(7,477)	$	(214)	$	(38,989)

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)


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

Nine Months Ended September 30, 2024
Balance, December 31, 2023	$	(48,579)	$	(8,549)	$	(35)	$	(57,163)
Other comprehensive income before reclassifications	20,603		—		54		20,657
Reclassifications	3,382		1,495		(305)		4,572
Other comprehensive income (loss), before tax	23,985		1,495		(251)		25,229
Income tax expense (benefit)	6,704		423		(72)		7,055
Other comprehensive income (loss), after tax	17,281		1,072		(179)		18,174
Balance, September 30, 2024	$	(31,298)	$	(7,477)	$	(214)	$	(38,989)

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)

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
ASSETS
Cash and due from banks	$ 26,776	$ 26,256
Interest-bearing deposits with banks	152,895	114,996
Cash and cash equivalents	179,671	141,252
Interest-bearing time deposits with banks	0	509
Debt securities available-for-sale, at fair value	710,303	759,461
Debt securities held-to-maturity (fair value of $463,259 at 2024 and $466,496 at 2023)	505,075	521,439
Equity securities with readily determinable fair value	3,364	3,360
Equity securities with no readily determinable fair value	2,638	2,505
Restricted stock, at cost	5,086	7,160
Loans held for sale	2,959	2,318
Loans, before allowance for credit losses	3,369,830	3,404,417
Allowance for credit losses	(40,966)	(40,048)
Loans, net of allowance for credit losses	3,328,864	3,364,369
Bank owned life insurance	24,405	23,905
Bank premises and equipment, net	65,919	65,150
Bank premises held for sale	317	0
Foreclosed assets	376	852
Goodwill	59,820	59,820
Intangible assets, net	18,552	20,682
Mortgage servicing rights, at fair value	17,496	19,001
Investments in unconsolidated subsidiaries	1,614	1,614
Accrued interest receivable	24,160	24,534
Other assets	40,109	55,239
Total assets	4,990,728	5,073,170
Deposits:
Noninterest-bearing	1,008,359	1,072,407
Interest-bearing	3,272,341	3,329,030
Total deposits	4,280,700	4,401,437
Securities sold under agreements to repurchase	29,029	42,442
FHLB advances	13,435	12,623
Subordinated notes	39,533	39,474
Junior subordinated debentures issued to capital trusts	52,834	52,789
Other liabilities	37,535	34,909
Total liabilities	4,453,066	4,583,674
COMMITMENTS AND CONTINGENCIES (Note 14)
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 32,827,039 at 2024 and 32,730,698 at 2023; shares outstanding of 31,559,366 at 2024 and 31,695,828 at 2023	328	327
Surplus	296,810	295,877
Retained earnings	302,532	269,051
Accumulated other comprehensive income (loss)	(38,989)	(57,163)
Treasury stock at cost, 1,267,673 shares at 2024 and 1,034,870 at 2023	(23,019)	(18,596)
Total stockholders’ equity	537,662	489,496
Total liabilities and stockholders’ equity	$ 4,990,728	$ 5,073,170

ACQUISITIONS - PCD loans and subsequent changes (Details) - USD ($) $ in Thousands		9 Months Ended	11 Months Ended
	Feb. 01, 2023	Sep. 30, 2023	Dec. 31, 2023
NONINTEREST EXPENSE
Allowance for credit losses at acquisition		$ (1,247)
Town and Country
NONINTEREST EXPENSE
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

COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2024

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, 2024		December 31, 2023

Commitments to extend credit	$	873,649	$	869,013
Standby letters of credit	23,560		23,732

STOCK-BASED COMPENSATION PLANS - Summary of assumptions used (Details) - Stock appreciation rights	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
STOCK-BASED COMPENSATION PLANS
Risk-free interest rate	3.58%	3.85%
Expected volatility	37.23%	37.37%
Expected life (in years)	4 years 10 months 24 days	5 years 8 months 12 days
Expected dividend yield	3.47%	3.22%

- 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

DEPOSITS - Interest bearing Deposits, Summary (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
DEPOSITS
Noninterest-bearing	$ 1,008,359	$ 1,072,407
Interest-bearing deposits:
Interest-bearing demand	1,076,445	1,145,092
Money market	795,150	803,381
Savings	566,783	608,424
Time	803,964	627,253
Brokered	29,999	144,880
Total interest-bearing deposits	3,272,341	3,329,030
Total deposits	$ 4,280,700	$ 4,401,437

COMMITMENTS AND CONTINGENCIES - Legal Contingencies (Details) - USD ($) $ in Thousands			3 Months Ended
	Mar. 29, 2024	May 15, 2023	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
DeBaere and Miller cases
Litigation
Settlement amount		$ 3,400
Payments for legal settlements				$ 3,400
Accrual included in other noninterest expense					$ 800	$ 2,600
John Pickett Cases
Litigation
Settlement amount	$ 300
Accrual included in other noninterest expense			$ 100	200
Accrual recorded				$ 200

- 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

SECURITIES - Amortized cost and Fair values of securities with gross unrealized gains and losses (Details) - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Available-for-sale:
Amortized Cost	$ 758,481,000	$ 831,624,000
Gross Unrealized Gains	1,227,000	99,000
Gross Unrealized Losses	(49,405,000)	(72,262,000)
Allowance for Credit Losses	0	0
Fair Value	710,303,000	759,461,000
Held-to-maturity
Amortized Cost	505,075,000	521,439,000
Gross Unrealized Gains	400,000	394,000
Gross Unrealized Losses	(42,216,000)	(55,337,000)
Fair Value	463,259,000	466,496,000
Allowance for Credit Losses	0	0
U.S. Treasury
Available-for-sale:
Amortized Cost	139,692,000	159,715,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(7,320,000)	(11,093,000)
Allowance for Credit Losses	0	0
Fair Value	132,372,000	148,622,000
U.S. government agency
Available-for-sale:
Amortized Cost	59,167,000	55,359,000
Gross Unrealized Gains	101,000	0
Gross Unrealized Losses	(1,969,000)	(3,262,000)
Allowance for Credit Losses	0	0
Fair Value	57,299,000	52,097,000
Held-to-maturity
Amortized Cost	88,465,000	88,448,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(6,031,000)	(8,292,000)
Fair Value	82,434,000	80,156,000
Allowance for Credit Losses	0	0
Municipal
Available-for-sale:
Amortized Cost	154,042,000	229,030,000
Gross Unrealized Gains	15,000	26,000
Gross Unrealized Losses	(16,185,000)	(23,499,000)
Allowance for Credit Losses	0	0
Fair Value	137,872,000	205,557,000
Held-to-maturity
Amortized Cost	36,319,000	38,442,000
Gross Unrealized Gains	353,000	394,000
Gross Unrealized Losses	(138,000)	(163,000)
Fair Value	36,534,000	38,673,000
Allowance for Credit Losses	0	0
Agency residential
Available-for-sale:
Amortized Cost	212,551,000	188,641,000
Gross Unrealized Gains	1,007,000	61,000
Gross Unrealized Losses	(10,309,000)	(14,718,000)
Allowance for Credit Losses	0	0
Fair Value	203,249,000	173,984,000
Held-to-maturity
Amortized Cost	88,232,000	95,828,000
Gross Unrealized Gains	21,000	0
Gross Unrealized Losses	(3,595,000)	(5,569,000)
Fair Value	84,658,000	90,259,000
Allowance for Credit Losses	0	0
Agency commercial
Available-for-sale:
Amortized Cost	131,313,000	141,214,000
Gross Unrealized Gains	8,000	3,000
Gross Unrealized Losses	(10,229,000)	(14,205,000)
Allowance for Credit Losses	0	0
Fair Value	121,092,000	127,012,000
Held-to-maturity
Amortized Cost	292,059,000	298,721,000
Gross Unrealized Gains	26,000	0
Gross Unrealized Losses	(32,452,000)	(41,313,000)
Fair Value	259,633,000	257,408,000
Allowance for Credit Losses	0	0
Corporate
Available-for-sale:
Amortized Cost	61,716,000	57,665,000
Gross Unrealized Gains	96,000	9,000
Gross Unrealized Losses	(3,393,000)	(5,485,000)
Allowance for Credit Losses	0	0
Fair Value	$ 58,419,000	$ 52,189,000

LOAN SERVICING

9 Months Ended

Sep. 30, 2024

Transfers and Servicing [Abstract]

LOAN SERVICING

Mortgage loans serviced for others, which are not included in the accompanying consolidated balance sheets, amounted to $1.58 billion and $1.66 billion as of September 30, 2024 and December 31, 2023, respectively. Activity in mortgage servicing rights was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023

Beginning balance	$	18,984	$	20,133	$	19,001	$	10,147
Acquired	—		—		—		10,469
Capitalized servicing rights	198		227		538		526
Fair value adjustments attributable to payments and principal reductions	(598)		(631)		(1,569)		(1,621)
Fair value adjustments attributable to changes in valuation inputs and assumptions	(1,088)		427		(474)		635
Ending balance	$	17,496	$	20,156	$	17,496	$	20,156

- 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 946
-SubTopic 210
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-04(11))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479170/946-210-S99-1

Reference 2: 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 3: 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 4: 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 5: 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 6: 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 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

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-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 - Nonrecurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	$ 3,369,830	$ 3,404,417
Foreclosed assets	376	852
Fair Value, Nonrecurring
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	2,959	2,318
Bank premises held for sale	317
Foreclosed assets	376	852
Fair Value, Nonrecurring \| Collateral-dependent loans
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	28,244	32,685
Fair Value, Nonrecurring \| Level 1
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	0	0
Bank premises held for sale	0
Foreclosed assets	0	0
Fair Value, Nonrecurring \| Level 1 \| Collateral-dependent loans
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	0	0
Fair Value, Nonrecurring \| Level 2
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	2,959	2,318
Bank premises held for sale	0
Foreclosed assets	0	0
Fair Value, Nonrecurring \| Level 2 \| Collateral-dependent loans
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	0	0
Fair Value, Nonrecurring \| Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	0	0
Bank premises held for sale	317
Foreclosed assets	376	852
Fair Value, Nonrecurring \| Level 3 \| Collateral-dependent loans
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	$ 28,244	$ 32,685

FAIR VALUE OF FINANCIAL INSTRUMENTS - Mortgage Servicing Rights (Details) $ in Thousands	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 17,496	$ 19,001
Fair Value, Recurring
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	17,496	19,001
Fair Value, Recurring \| Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 17,496	$ 19,001
Fair Value, Recurring \| Level 3 \| Measurement Input, Constant Prepayment Rate \| Minimum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.019	0.062
Fair Value, Recurring \| Level 3 \| Measurement Input, Constant Prepayment Rate \| Maximum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.943	0.494
Fair Value, Recurring \| Level 3 \| Measurement Input, Constant Prepayment Rate \| Weighted Average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.091	0.084
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	0.153	0.373
Fair Value, Recurring \| Level 3 \| Measurement Input, Discount Rate \| Weighted Average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	0.095	0.096

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Categories of loans (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	$ 3,369,830		$ 3,404,417
Allowance for credit losses	(40,966)	$ (40,806)	(40,048)	$ (38,863)	$ (37,814)	$ (25,333)
Loans, net of allowance for credit losses	3,328,864		3,364,369
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	395,598		427,800
Allowance for credit losses	(5,034)	(4,761)	(4,980)	(4,249)	(3,735)	(3,279)
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	288,838		295,842
Allowance for credit losses	(2,231)	(2,191)	(2,272)	(2,254)	(2,362)	(1,193)
Commercial real estate - non-owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	889,188		880,681
Allowance for credit losses	(9,547)	(9,816)	(7,714)	(7,630)	(7,538)	(6,721)
Construction and land development
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	359,151		363,983
Allowance for credit losses	(6,578)	(6,155)	(5,998)	(6,882)	(5,834)	(4,223)
Multi-family
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	432,712		417,923
Allowance for credit losses	(3,790)	(3,712)	(3,837)	(2,535)	(2,603)	(1,472)
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	472,040		491,508
Allowance for credit losses	(4,730)	(4,785)	(5,204)	(4,088)	(4,077)	(1,759)
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	297,102		287,294
Allowance for credit losses	(1,287)	(1,059)	(975)	(2,272)	(2,607)	(796)
Municipal, consumer, and other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for credit losses	235,201		239,386
Allowance for credit losses	$ (7,769)	$ (8,327)	$ (9,068)	$ (8,953)	$ (9,058)	$ (5,890)

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Non-accrual loans (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	$ 1,088	$ 538
Nonaccrual With No Allowance for Credit Losses	7,112	7,282
Total Nonaccrual	8,200	7,820
Commercial and industrial
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	522	120
Nonaccrual With No Allowance for Credit Losses	493	152
Total Nonaccrual	1,015	272
Commercial real estate - owner occupied
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	0	0
Nonaccrual With No Allowance for Credit Losses	0	170
Total Nonaccrual	0	170
Commercial real estate - non-owner occupied
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	0	188
Nonaccrual With No Allowance for Credit Losses	1,833	1,647
Total Nonaccrual	1,833	1,835
Construction and land development
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	216	216
Nonaccrual With No Allowance for Credit Losses	0	0
Total Nonaccrual	216	216
Multi-family
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	0	0
Nonaccrual With No Allowance for Credit Losses	0	315
Total Nonaccrual	0	315
One-to-four family residential
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	350	14
Nonaccrual With No Allowance for Credit Losses	4,772	4,790
Total Nonaccrual	5,122	4,804
Agricultural and farmland
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	0	0
Nonaccrual With No Allowance for Credit Losses	0	144
Total Nonaccrual	0	144
Municipal, consumer, and other
Financing receivable, nonaccrual
Nonaccrual With Allowance for Credit Losses	0	0
Nonaccrual With No Allowance for Credit Losses	14	64
Total Nonaccrual	$ 14	$ 64

ACQUISITIONS (Tables)

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of expenses incurred related to the acquisition


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

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	1,964
Total noninterest expense	7,767
Total Town and Country acquisition-related expenses	$	13,691

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	301
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	8,940
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

(dollars in thousands, except per share data)	Three Months Ended September 30, 2023		Nine Months Ended September 30, 2023
Total revenues (net interest income and noninterest income)	$	57,459	$	174,015
Net income	19,497		47,697
Earnings per share - basic	0.61		1.49
Earnings per share - diluted	0.61		1.49

ACCOUNTING POLICIES (Details) $ in Thousands	9 Months Ended
ACCOUNTING POLICIES (Details) $ in Thousands	Sep. 30, 2024 USD ($) segment	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Maximum loss exposure, amount	$ 7,300
Number of segments \| segment	1
Stockholders’ equity	$ 537,662	$ 509,469	$ 489,496	$ 456,251	$ 450,852	$ 373,632
Other assets	40,109		55,239
Other liabilities	37,535		34,909
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders’ equity	$ 302,532	$ 290,386	269,051	$ 256,050	$ 241,777	232,004
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders’ equity			116			(6,922)
Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2023-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Decrease in deferred tax liabilities			100
Other assets			7,200
Other liabilities			7,200
Cumulative Effect, Period of Adoption, Adjustment \| Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders’ equity			116			$ (6,922)
Cumulative Effect, Period of Adoption, Adjustment \| Retained Earnings \| Accounting Standards Update 2023-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders’ equity			$ 100

ACQUISITIONS - Narrative (Details) - USD ($)		3 Months Ended	9 Months Ended	15 Months Ended
ACQUISITIONS - Narrative (Details) - USD ($)	Feb. 01, 2023	Sep. 30, 2023	Sep. 30, 2023	Sep. 30, 2024	Dec. 31, 2023
NONINTEREST EXPENSE
Goodwill				$ 59,820,000	$ 59,820,000
Town and Country
NONINTEREST EXPENSE
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
Business acquisition, equity interest issued or issuable (in shares)	3,378,600
Cash consideration	$ 37,996,000
Share price (in dollars per share)	$ 21.12
Business combination, consideration transferred	$ 109,352,000
Maximum period for refinement of fair values from closing date	1 year
Adjustment, income tax assets and liabilities		$ 100,000
Goodwill	$ 30,498,000
Acquisition related costs			$ 13,691,000	$ 0

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 51,508	$ 47,396
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	2,207	2,362
Provision for credit losses	2,306	6,460
Net amortization of debt securities	2,886	4,391
Deferred income tax expense	361	2,492
Stock-based compensation	1,265	1,559
Net accretion of discount and deferred loan fees on loans	(5,497)	(5,312)
Net realized loss on sales of securities	3,382	1,820
Net unrealized loss (gain) on equity securities	(24)	61
Net loss (gain) on disposals of bank premises and equipment	57	(84)
Net gain on sales of bank premises held for sale	0	(75)
Impairment losses on bank premises held for sale	580	0
Net gain on sales of foreclosed assets	(105)	(632)
Write-down of foreclosed assets	90	189
Amortization of intangibles	2,130	1,950
Decrease in mortgage servicing rights	1,505	460
Amortization of discount and issuance costs on subordinated notes and debentures	104	104
Amortization of discount on Federal Home Loan Bank advances	305	275
Amortization of premium on time deposits	(86)	(330)
Mortgage loans originated for sale	(46,706)	(53,187)
Proceeds from sale of mortgage loans	47,267	52,976
Net gain on sale of mortgage loans	(1,202)	(1,125)
Increase in cash surrender value of bank owned life insurance	(500)	(408)
Decrease (increase) in accrued interest receivable	374	(828)
Decrease in other assets	5,003	12,530
Increase (decrease) in other liabilities	4,879	(20,198)
Net cash provided by operating activities	72,089	52,846
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities of interest-bearing time deposits with banks	520	249
Purchase of interest-bearing time deposits with banks	(11)	(500)
Proceeds from sales of debt securities	66,812	185,280
Proceeds from sales and redemptions of equity securities	58	0
Proceeds from paydowns, maturities, and calls of debt securities	85,208	74,616
Purchase of debt securities	(67,286)	(2,640)
Purchase of equity securities	(171)	(370)
Purchase of loans	(4,448)	(49,859)
Net decrease (increase) in loans	42,815	(32,506)
Purchase of restricted stock	0	(20,143)
Proceeds from redemption of restricted stock	2,074	19,765
Purchases of bank premises and equipment	(3,930)	(1,951)
Proceeds from sales of bank premises and equipment	0	222
Proceeds from sales of bank premises held for sale	0	310
Proceeds from sales of foreclosed assets	1,143	3,274
Net cash paid for acquisition of Town and Country	0	(14,454)
Net cash provided by investing activities	122,784	161,293
CASH FLOWS FROM FINANCING ACTIVITIES
Net decrease in deposits	(120,651)	(109,043)
Net decrease in repurchase agreements	(13,413)	(14,181)
Repayment of long-term Federal Home Loan Bank advances	(400)	(69,064)
Proceeds from long-term Federal Home Loan Bank advances	907	0
Taxes paid related to the vesting of restricted stock units	(331)	(181)
Repurchase of common stock	(4,423)	(7,488)
Cash dividends and dividend equivalents paid	(18,143)	(16,428)
Net cash used in financing activities	(156,454)	(216,385)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	38,419	(2,246)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	141,252	114,159
CASH AND CASH EQUIVALENTS AT END OF PERIOD	179,671	111,913
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	47,745	21,788
Net cash paid for income taxes	17,326	15,867
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING ACTIVITIES
Transfers of loans to foreclosed assets	652	1,049
Transfers of bank premises and equipment to bank premises held for sale	$ 317	$ 35

DERIVATIVE FINANCIAL INSTRUMENTS - Interest rate contracts designated as cash flow hedges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Cash Flow Hedging \| Interest Expense
DERIVATIVE FINANCIAL INSTRUMENTS
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income (loss)	$ 55	$ 131	$ 305	$ 334

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES - Pledged Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	$ 3,328,864	$ 3,364,369
Pledged assets
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	$ 1,880,000	$ 1,200,000

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 509,469	$ 450,852	$ 489,496	$ 373,632
Other comprehensive income (loss) before reclassifications	21,310	(11,268)
Reclassifications	451	400
Other comprehensive income (loss), before tax	21,761	(10,868)	25,229	(9,333)
Income tax expense (benefit)	6,094	(3,098)	7,055	(2,660)
Other comprehensive income (loss), after tax	15,667	(7,770)	18,174	(6,673)
Ending balance	537,662	456,251	537,662	456,251
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(54,656)	(70,662)	(57,163)	(71,759)
Other comprehensive income (loss) before reclassifications			20,657	(12,302)
Reclassifications			4,572	2,969
Other comprehensive income (loss), before tax			25,229	(9,333)
Income tax expense (benefit)			7,055	(2,660)
Other comprehensive income (loss), after tax	15,667	(7,770)	18,174	(6,673)
Ending balance	(38,989)	(78,432)	(38,989)	(78,432)
Available-for-Sale
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(46,658)	(61,560)	(48,579)	(61,998)
Other comprehensive income (loss) before reclassifications	21,334	(11,326)	20,603	(12,521)
Reclassifications	0	13	3,382	1,820
Other comprehensive income (loss), before tax	21,334	(11,313)	23,985	(10,701)
Income tax expense (benefit)	5,974	(3,224)	6,704	(3,050)
Other comprehensive income (loss), after tax	15,360	(8,089)	17,281	(7,651)
Ending balance	(31,298)	(69,649)	(31,298)	(69,649)
Held-to-Maturity
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(7,841)	(9,256)	(8,549)	(9,946)
Other comprehensive income (loss) before reclassifications	0	0	0	0
Reclassifications	506	518	1,495	1,483
Other comprehensive income (loss), before tax	506	518	1,495	1,483
Income tax expense (benefit)	142	147	423	422
Other comprehensive income (loss), after tax	364	371	1,072	1,061
Ending balance	(7,477)	(8,885)	(7,477)	(8,885)
Derivatives
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(157)	154	(35)	185
Other comprehensive income (loss) before reclassifications	(24)	58	54	219
Reclassifications	(55)	(131)	(305)	(334)
Other comprehensive income (loss), before tax	(79)	(73)	(251)	(115)
Income tax expense (benefit)	(22)	(21)	(72)	(32)
Other comprehensive income (loss), after tax	(57)	(52)	(179)	(83)
Ending balance	$ (214)	$ 102	$ (214)	$ 102

DEPOSITS - Interest expense on Deposits (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Deposits [Abstract]
Interest-bearing demand	$ 1,408	$ 761	$ 4,148	$ 1,902
Money market	4,726	2,026	14,193	4,467
Savings	396	249	1,232	616
Time	7,702	3,275	20,744	6,011
Brokered	417	900	2,058	912
Total interest expense on deposits	$ 14,649	$ 7,211	$ 42,375	$ 13,908

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
COMMITMENTS AND CONTINGENCIES
Off-balance-sheet, credit loss, liability	$ 4,100	$ 3,800
Standby letters of credit
COMMITMENTS AND CONTINGENCIES
Financial instruments off-balance sheet credit risks	23,560	23,732
Commitments to extend credit
COMMITMENTS AND CONTINGENCIES
Financial instruments off-balance sheet credit risks	$ 873,649	$ 869,013

FAIR VALUE OF FINANCIAL INSTRUMENTS - Unobservable inputs used in nonrecurring measurements (Details) $ in Thousands	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	$ 3,369,830	$ 3,404,417
Foreclosed assets	376	852
Fair Value, Nonrecurring
FAIR VALUE OF FINANCIAL INSTRUMENTS
Bank premises held for sale	317
Foreclosed assets	376	852
Fair Value, Nonrecurring \| Collateral-dependent loans
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	28,244	32,685
Fair Value, Nonrecurring \| Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Bank premises held for sale	317
Foreclosed assets	$ 376	$ 852
Fair Value, Nonrecurring \| Level 3 \| Appraisal adjustments
FAIR VALUE OF FINANCIAL INSTRUMENTS
Bank premises held for sale, measurement input	0.07
Foreclosed assets, measurement input	0.07	0.07
Fair Value, Nonrecurring \| Level 3 \| Collateral-dependent loans
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans, before allowance for credit losses	$ 28,244	$ 32,685
Fair Value, Nonrecurring \| Level 3 \| Weighted Average \| Appraisal adjustments
FAIR VALUE OF FINANCIAL INSTRUMENTS
Bank premises held for sale, measurement input	0.07
Foreclosed assets, measurement input	0.07	0.07

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	$ 710,303	$ 759,461
Equity securities with readily determinable fair values	3,364	3,360
Mortgage servicing rights, at fair value	17,496	19,001
U.S. Treasury
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	132,372	148,622
U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	57,299	52,097
Municipal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	137,872	205,557
Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	203,249	173,984
Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	121,092	127,012
Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	58,419	52,189
Fair Value, Recurring
FAIR VALUE OF FINANCIAL INSTRUMENTS
Equity securities with readily determinable fair values	3,364	3,360
Mortgage servicing rights, at fair value	17,496	19,001
Derivative financial assets	3,722	6,549
Derivative financial liabilities	3,651	6,227
Fair Value, Recurring \| U.S. Treasury
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	132,372	148,622
Fair Value, Recurring \| U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	57,299	52,097
Fair Value, Recurring \| Municipal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	137,872	205,557
Fair Value, Recurring \| Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	203,249	173,984
Fair Value, Recurring \| Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	121,092	127,012
Fair Value, Recurring \| Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	58,419	52,189
Fair Value, Recurring \| Level 1
FAIR VALUE OF FINANCIAL INSTRUMENTS
Equity securities with readily determinable fair values	3,364	3,360
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:	0	148,622
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	3,722	6,549
Derivative financial liabilities	3,651	6,227
Fair Value, Recurring \| Level 2 \| U.S. Treasury
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	132,372	0
Fair Value, Recurring \| Level 2 \| U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	57,299	52,097
Fair Value, Recurring \| Level 2 \| Municipal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	137,872	205,557
Fair Value, Recurring \| Level 2 \| Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	203,249	173,984
Fair Value, Recurring \| Level 2 \| Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	121,092	127,012
Fair Value, Recurring \| Level 2 \| Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale:	58,419	52,189
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	17,496	19,001
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

ACCOUNTING POLICIES (Policies)	9 Months Ended
ACCOUNTING POLICIES (Policies)	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	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 financial products and services to consumers, 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, 2023, filed with the SEC on March 6, 2024. 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. The Company expects to exit its status as an emerging growth company as of December 31, 2024.
Use of Estimates	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.
Low Income Housing Tax Credits	Low Income Housing Tax Credits The Company holds an ownership interest in a limited liability company, as a limited member, that invests in affordable housing projects. This investment is designed to generate a return primarily through the realization of federal tax credits and deductions, which may be subject to recapture by taxing authorities if compliance requirements are not met. The Company accounts for its low income housing investments using the proportional amortization method. The Company’s investment in the qualified affordable housing project meets the definition of a variable interest entity ("VIE") as the entity is structured such that the limited partner investors lack substantive voting rights. The managing member has both the power to direct the activities that most significantly impact the economic performance of the entity and the obligation to absorb losses or the right to receive benefits that could be significant to the entity. Accordingly, the Company is not the primary beneficiary and is not required to consolidate this entity. The Company's maximum exposure to loss is limited to the carrying amount of the investment, which was $7.3 million as of September 30, 2024.
Segment Reporting	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	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	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 and Recent Accounting Pronouncements	Impact of Recently Adopted Accounting Standards On January 1, 2024, the Company adopted 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. The Company adopted ASU 2023-02 using the modified retrospective method. The Company recorded a $0.1 million increase to retained earnings and decrease to deferred tax liability, as well as a $7.2 million increase to other assets and other liabilities, as a result of the adoption. 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 did not have an 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 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 did not have an impact on the Company’s consolidated results of operations or financial position. Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 expands disclosure requirements for significant segment expenses under Topic 280. The amendments require public entities to disclose significant expense categories for each reportable segment, other segment items, the title and position of the chief operating decision-maker, and interim disclosures of certain segment-related information previously required only on an annual basis. The amendments clarify that entities reporting single segments must disclose both the new and existing segment disclosures under Topic 280, and a public entity is permitted to disclose multiple measures of segment profit or loss if certain criteria are met. The amendments in this update are effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 31, 2024. ASU 2023-07 must be applied on a retrospective basis. 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 December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 expands income tax disclosure requirements. The amendments require annual disclosure of certain information relating to the rate reconciliation, income taxes paid by jurisdiction, income (loss) from continuing operations before income tax expense (benefit) disaggregated between domestic and foreign, income tax expense (benefit) from continuing operations disaggregated by federal (national), state, and foreign. The amendments also eliminate certain requirements relating to unrecognized tax benefits and certain deferred tax disclosure relating to subsidiaries and corporate joint ventures. The amendments in this update are effective for years beginning after December 15, 2024. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. 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.
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. Level 2 - Significant observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 - Significant unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing as asset or liability. The Company uses fair value to measure certain assets and liabilities on a recurring basis, such as investment securities, mortgage servicing rights, and derivatives. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period, and such measurements are therefore considered "nonrecurring" for purposes of disclosing the Company's fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for loans held for sale, collateral-dependent loans, bank premises held for sale, and foreclosed assets. Recurring Basis The following is a description of the methods and significant assumptions used to measure the fair value of assets and liabilities on a recurring basis. 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. The change in fair value of equity securities with readily determinable fair values 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. 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. 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. 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 generally indicate fair value of the held for sale loans is greater than cost. Loans held for sale have been classified as Level 2. Collateral-Dependent Loans Periodically, a collateral-dependent loan is evaluated individually and is reported at the fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. If the collateral value is not sufficient, a specific reserve is recorded. Collateral values are estimated using recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3. 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 recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3. 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 recent appraisals and customized discounting criteria. Due to the significance of unobservable inputs, fair values of collateral-dependent loans have been classified as Level 3. 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 and Brokered 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. FHLB Advances The fair values of FHLB advances are estimated using discounted cash flow analyses based on current rates offered for borrowings with similar remaining maturities and characteristics. 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.

- Definition

Disclosure of accounting policy for segment reporting.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 47
-Subparagraph (bb)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-47

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 29
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-29

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 54
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-54

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 36
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-36

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 47
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-47

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 29
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-29

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 29
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-29

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 29
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-29

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

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 29
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-29

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 29
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-29

+ Details

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, 2024	Dec. 31, 2023
Other Assets
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount	$ 80,621	$ 94,497
Derivative financial assets	3,651	6,227
Other Assets \| Interest rate swaps with a commercial borrower counterparty
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount	0	0
Derivative financial assets	0	0
Other Assets \| Interest rate swaps with a financial institution counterparty
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount	80,621	94,497
Derivative financial assets	3,651	6,227
Other Liabilities
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative liability notional amount	80,621	94,497
Derivative financial liabilities fair value	(3,651)	(6,227)
Other Liabilities \| Interest rate swaps with a commercial borrower counterparty
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative liability notional amount	80,621	94,497
Derivative financial liabilities fair value	(3,651)	(6,227)
Other Liabilities \| Interest rate swaps with a financial institution counterparty
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative liability notional amount	0	0
Derivative financial liabilities fair value	$ 0	$ 0

STOCK-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Restricted stock units
STOCK-BASED COMPENSATION PLANS
Number of shares participant is entitled to receive (in shares)	1
Fair value of units granted	$ 1,000	$ 1,000
Intrinsic value of restricted stock units	1,400	1,100
Unrecognized compensation cost related to non-vested stock-based compensation agreements	$ 1,100
Weighted average remaining service period	1 year 7 months 6 days
Performance restricted stock units
STOCK-BASED COMPENSATION PLANS
Intrinsic value of restricted stock units	$ 800
Unrecognized compensation cost related to non-vested stock-based compensation agreements	$ 400
Weighted average remaining service period	1 year 3 months 18 days
Performance restricted stock units \| Share-Based Payment Arrangement, Employee
STOCK-BASED COMPENSATION PLANS
Fair value of units granted	$ 400	$ 400
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
Stock appreciation rights plan liability recorded for the outstanding units	$ 600		$ 600
Stock appreciation rights plan liability recorded for the previously exercised units			$ 200
Weighted average remaining contractual term	4 years 7 months 6 days
Omnibus Incentive Plan
STOCK-BASED COMPENSATION PLANS
Authorized number of shares (in shares)	1,820,000

STOCK-BASED COMPENSATION PLANS

9 Months Ended

Sep. 30, 2024

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 (vii) 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)	2024		2023		2024		2023

Restricted stock units	$	263	$	313	$	798	$	907
Performance restricted stock units	117		295		467		652
Total awards classified as equity	380		608		1,265		1,559
Stock appreciation rights	64		3		5		(43)
Total stock-based compensation expense	$	444	$	611	$	1,270	$	1,516

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, are classified as dividends charged to retained earnings.

During the nine months ended September 30, 2024 and 2023, the total grant date fair value of the restricted stock units granted was $1.0 million and $1.0 million, respectively, based on the grant date closing prices. The total intrinsic value of restricted stock units that vested during the nine months ended September 30, 2024 and 2023 was $1.4 million and $1.1 million, respectively.

The following is a summary of restricted stock unit activity:


	Three Months Ended September 30,
	2024			2023
	Restricted Stock Units	Weighted Average Grant Date Fair Value		Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	108,865	$	19.71	129,422	$	19.58
Granted	—	—		—	—
Vested	—	—		—	—
Forfeited	(131)	19.06		(520)	21.23
Ending balance	108,734	$	19.71	128,902	$	19.57

	Nine Months Ended September 30,
	2024			2023
	Restricted Stock Units	Weighted Average Grant Date Fair Value		Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	128,159	$	19.56	139,986	$	18.01
Granted	51,246	19.06		41,847	22.72
Vested	(70,540)	18.96		(51,693)	17.91
Forfeited	(131)	19.06		(1,238)	18.53
Ending balance	108,734	$	19.71	128,902	$	19.57

As of September 30, 2024, unrecognized compensation cost related to the non-vested restricted stock units was $1.1 million. This cost is expected to be recognized over the weighted average remaining service period of 1.6 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, 2024 and 2023, the total fair value of the performance restricted stock units granted was $0.4 million and $0.4 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 total intrinsic value of performance restricted stock units that vested during the nine months ended September 30, 2024 was $0.8 million.

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


	Three Months Ended September 30,
	2024			2023
	Performance Restricted Stock Units	Weighted Average Grant Date Fair Value		Performance Restricted Stock Units	Weighted Average Grant Date Fair Value
Beginning balance	70,333	$	19.59	79,097	$	18.25
Granted	—	—		—	—
Adjustment for performance condition	—	—		—	—
Vested	—	—		—	—
Forfeited	—	—		—	—
Ending balance	70,333	$	19.59	79,097	$	18.25

	Nine Months Ended September 30,
	2024			2023
	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	19,933	19.06		17,030	22.72
Adjustment for performance condition	14,349	15.53		—	—
Vested	(43,046)	15.53		—	—
Forfeited	—	—		—	—
Ending balance	70,333	$	19.59	79,097	$	18.25

As of September 30, 2024, 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 1.3 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 following is a summary of stock appreciation rights activity:


	Three Months Ended September 30,
	2024			2023
	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	73,440	$	16.32
Granted	—	—		—	—
Exercised	—	—		—	—
Expired	—	—		—	—
Forfeited	—	—		—	—
Ending balance	73,440	$	16.32	73,440	$	16.32

	Nine Months Ended September 30,
	2024			2023
	Stock Appreciation Rights	Weighted Average Grant Date Assigned Value		Stock Appreciation Rights	Weighted Average Grant Date Assigned Value
Beginning balance	73,440	$	16.32	73,440	$	16.32
Granted	—	—		—	—
Exercised	—	—		—	—
Expired	—	—		—	—
Forfeited	—	—		—	—
Ending balance	73,440	$	16.32	73,440	$	16.32

As of September 30, 2024, all stock appreciation rights were exercisable and had a weighted average remaining term of 4.6 years. There was no unrecognized compensation cost for stock appreciation rights as of September 30, 2024.

As of September 30, 2024 and December 31, 2023, the liability recorded for outstanding stock appreciation rights was $0.6 million and $0.6 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, 2024		December 31, 2023
Risk-free interest rate	3.58	%	3.85	%
Expected volatility	37.23	%	37.37	%
Expected life (in years)	4.9		5.7
Expected dividend yield	3.47	%	3.22	%

As of December 31, 2023, the liability recorded for previously exercised stock appreciation rights was $0.2 million which was paid in 2024.

LOAN SERVICING (Tables)

9 Months Ended

Sep. 30, 2024

Transfers and Servicing [Abstract]

Schedule of activity in mortgage servicing rights

Activity in mortgage servicing rights was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023

Beginning balance	$	18,984	$	20,133	$	19,001	$	10,147
Acquired	—		—		—		10,469
Capitalized servicing rights	198		227		538		526
Fair value adjustments attributable to payments and principal reductions	(598)		(631)		(1,569)		(1,621)
Fair value adjustments attributable to changes in valuation inputs and assumptions	(1,088)		427		(474)		635
Ending balance	$	17,496	$	20,156	$	17,496	$	20,156

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 18,180	$ 19,715	$ 51,508	$ 47,396
OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized gains (losses) on debt securities available-for-sale	21,334	(11,326)	20,603	(12,521)
Reclassification adjustment for losses on sale of debt securities available-for-sale realized in income	0	13	3,382	1,820
Reclassification adjustment for amortization of net unrealized losses on debt securities transferred to held-to-maturity	506	518	1,495	1,483
Unrealized gains (losses) on derivative instruments	(24)	58	54	219
Reclassification adjustment for net settlements on derivative instruments	(55)	(131)	(305)	(334)
Other comprehensive income (loss), before tax	21,761	(10,868)	25,229	(9,333)
Income tax expense (benefit)	6,094	(3,098)	7,055	(2,660)
Total other comprehensive income (loss)	15,667	(7,770)	18,174	(6,673)
TOTAL COMPREHENSIVE INCOME	$ 33,847	$ 11,945	$ 69,682	$ 40,723

ACQUISITIONS

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

ACQUISITIONS

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. Acquisition-related expenses recognized during the nine months ended September 30, 2023 are summarized below. There were no Town and Country acquisition-related expenses recognized subsequent to the second quarter of 2023.


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

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	1,964
Total noninterest expense	7,767
Total Town and Country acquisition-related expenses	$	13,691

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	301
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	8,940
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 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

(dollars in thousands, except per share data)	Three Months Ended September 30, 2023		Nine Months Ended September 30, 2023
Total revenues (net interest income and noninterest income)	$	57,459	$	174,015
Net income	19,497		47,697
Earnings per share - basic	0.61		1.49
Earnings per share - diluted	0.61		1.49

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Sep. 30, 2024

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, 2024
Balance, June 30, 2024	$	(46,658)	$	(7,841)	$	(157)	$	(54,656)
Other comprehensive income (loss) before reclassifications	21,334		—		(24)		21,310
Reclassifications	—		506		(55)		451
Other comprehensive income (loss), before tax	21,334		506		(79)		21,761
Income tax expense (benefit)	5,974		142		(22)		6,094
Other comprehensive income (loss), after tax	15,360		364		(57)		15,667
Balance, September 30, 2024	$	(31,298)	$	(7,477)	$	(214)	$	(38,989)

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)


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

Nine Months Ended September 30, 2024
Balance, December 31, 2023	$	(48,579)	$	(8,549)	$	(35)	$	(57,163)
Other comprehensive income before reclassifications	20,603		—		54		20,657
Reclassifications	3,382		1,495		(305)		4,572
Other comprehensive income (loss), before tax	23,985		1,495		(251)		25,229
Income tax expense (benefit)	6,704		423		(72)		7,055
Other comprehensive income (loss), after tax	17,281		1,072		(179)		18,174
Balance, September 30, 2024	$	(31,298)	$	(7,477)	$	(214)	$	(38,989)

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)

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 8 for additional information.

SECURITIES

9 Months Ended

Sep. 30, 2024

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, 2024
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value

Available-for-sale:
U.S. Treasury	$	139,692	$	—	$	(7,320)	$	—	$	132,372
U.S. government agency	59,167		101		(1,969)		—		57,299
Municipal	154,042		15		(16,185)		—		137,872
Mortgage-backed:
Agency residential	212,551		1,007		(10,309)		—		203,249
Agency commercial	131,313		8		(10,229)		—		121,092
Corporate	61,716		96		(3,393)		—		58,419
Total available-for-sale	$	758,481	$	1,227	$	(49,405)	$	—	$	710,303

	September 30, 2024
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses

Held-to-maturity:
U.S. government agency	$	88,465	$	—	$	(6,031)	$	82,434	$	—
Municipal	36,319		353		(138)		36,534		—
Mortgage-backed:
Agency residential	88,232		21		(3,595)		84,658		—
Agency commercial	292,059		26		(32,452)		259,633		—
Total held-to-maturity	$	505,075	$	400	$	(42,216)	$	463,259	$	—


	December 31, 2023
(dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value

Available-for-sale:
U.S. Treasury	$	159,715	$	—	$	(11,093)	$	—	$	148,622
U.S. government agency	55,359		—		(3,262)		—		52,097
Municipal	229,030		26		(23,499)		—		205,557
Mortgage-backed:
Agency residential	188,641		61		(14,718)		—		173,984
Agency commercial	141,214		3		(14,205)		—		127,012
Corporate	57,665		9		(5,485)		—		52,189
Total available-for-sale	$	831,624	$	99	$	(72,262)	$	—	$	759,461

	December 31, 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	$	88,448	$	—	$	(8,292)	$	80,156	$	—
Municipal	38,442		394		(163)		38,673		—
Mortgage-backed:
Agency residential	95,828		—		(5,569)		90,259		—
Agency commercial	298,721		—		(41,313)		257,408		—
Total held-to-maturity	$	521,439	$	394	$	(55,337)	$	466,496	$	—

As of September 30, 2024 and December 31, 2023, the Bank had debt securities with a carrying value of $549.3 million and $419.4 million, respectively, which were pledged to secure public deposits, securities sold under agreements to repurchase, available borrowing capacity, and for other purposes required or permitted by law.


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

Due in 1 year or less	$	50,398	$	49,930	$	4,891	$	4,873
Due after 1 year through 5 years	184,468		174,898		49,208		47,631
Due after 5 years through 10 years	157,851		142,184		68,427		64,225
Due after 10 years	21,900		18,950		2,258		2,239

Mortgage-backed:
Agency residential	212,551		203,249		88,232		84,658
Agency commercial	131,313		121,092		292,059		259,633
Total	$	758,481	$	710,303	$	505,075	$	463,259


	September 30, 2024
	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	$	—	$	—	$	(7,320)	$	132,372	$	(7,320)	$	132,372
U.S. government agency	(5)		2,995		(1,964)		49,468		(1,969)		52,463
Municipal	—		—		(16,185)		135,209		(16,185)		135,209
Mortgage-backed:
Agency residential	(116)		19,691		(10,193)		137,916		(10,309)		157,607
Agency commercial	(5)		2,595		(10,224)		116,421		(10,229)		119,016
Corporate	—		—		(3,393)		44,464		(3,393)		44,464
Total available-for-sale	$	(126)	$	25,281	$	(49,279)	$	615,850	$	(49,405)	$	641,131


	December 31, 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	$	—	$	—	$	(11,093)	$	148,622	$	(11,093)	$	148,622
U.S. government agency	(2)		168		(3,260)		51,910		(3,262)		52,078
Municipal	(26)		4,749		(23,473)		194,287		(23,499)		199,036
Mortgage-backed:
Agency residential	(163)		9,354		(14,555)		156,785		(14,718)		166,139
Agency commercial	(26)		3,016		(14,179)		123,404		(14,205)		126,420
Corporate	(414)		4,361		(5,071)		45,826		(5,485)		50,187
Total available-for-sale	$	(631)	$	21,648	$	(71,631)	$	720,834	$	(72,262)	$	742,482

As of September 30, 2024, there were 627 debt securities in an unrealized loss position for a period of twelve months or more, and 13 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 73% general obligation bonds as of September 30, 2024, 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 Aa3/AA- 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. During 2024, the changes in fair value in corporate securities were considered to be primarily driven by changes in market interest rates and other non-credit risks, such as call and liquidity risks. There was no allowance for credit losses recorded on corporate debt securities as of September 30, 2024 and December 31, 2023.

During the first half of 2023, a provision for credit losses of $0.8 million was recognized, related to one bank subordinated debt security reflecting heightened potential credit risk following the failures of other banks in 2023. This heightened potential credit risk was later reduced after a merger announcement by the issuer of the bank subordinated debt security and a negative provision for credit losses of $0.8 million was recorded during the third quarter of 2023.

As of September 30, 2024, the Company did not intend to sell the debt securities that are in an unrealized 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 is excluded from the estimate of credit losses and totaled $5.0 million and $6.0 million as of September 30, 2024 and December 31, 2023, respectively.

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)	2024		2023		2024		2023

Proceeds from sales	$	—	$	39,436	$	66,812	$	185,280
Gross realized gains	—		—		—		—
Gross realized losses	—		(813)		(3,382)		(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 were as follows:


	September 30, 2024
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value

Initial cost	$	3,124	$	2,973
Cumulative net unrealized gains (losses)	240		(335)
Carrying value	$	3,364	$	2,638


	December 31, 2023
(dollars in thousands)	Readily Determinable Fair Value		No Readily Determinable Fair Value

Initial cost	$	3,143	$	2,840
Cumulative net unrealized gains (losses)	217		(335)
Carrying value	$	3,360	$	2,505

As of September 30, 2024 and December 31, 2023, the cumulative net unrealized losses on equity securities with no readily determinable fair value reflect impairments of $0.2 million and downward adjustments based on observable price changes of an identical investment of $0.2 million. There have been no upward adjustments based on observable price changes to equity securities with no readily determinable fair value.

Unrealized gains (losses) on equity securities were as follows during the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023

Readily determinable fair value	$	136	$	(46)	$	24	$	77
No readily determinable fair value	—		—		—		(138)
Unrealized gains (losses) on equity securities	$	136	$	(46)	$	24	$	(61)