10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	September 30, 2021
	OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ____________ to __________

Commission file number 333-236022

BANCPLUS CORPORATION

(Exact name of registrant as specified in its charter)

Mississippi	64-0655312
(State or other jurisdiction of  incorporation or organization)	(I.R.S. Employer Identification Number)

1068 Highland Colony Parkway

Ridgeland, Mississippi 39157

(601) 898-8300

(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
None	N/A	N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

Shares of the registrant’s Common Stock, par value $1.00 per share, issued and outstanding as of November 8, 2021: 10,112,254

BANCPLUS CORPORATION

FORM 10-Q

For the Quarter Ended SEPTEMBER 30, 2021

INDEX

	Page Number
PART I – FINANCIAL INFORMATION	2
Item 1. Financial Statements (Unaudited):	2
Condensed Consolidated Balance Sheets at September 30, 2021 (unaudited), and December 31, 2020	2
Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2021 and 2020 (unaudited)	3
Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2021 and 2020 (unaudited)	4
Condensed Consolidated Statements of Shareholders’ Equity for the three and nine months ended September 30, 2021 and 2020 (unaudited)	5
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020 (unaudited)	7
Notes to the Condensed Consolidated Financial Statements (unaudited)	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Cautionary Statement Regarding Forward-Looking Statements	33
Item 3. Quantitative and Qualitative Disclosures about Market Risk	63
Item 4. Controls and Procedures	63
PART II – OTHER INFORMATION	64
Item 1. Legal Proceedings	64
Item 1A. Risk Factors	64
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	66
Item 3. Defaults Upon Senior Securities	66
Item 4. Mine Safety Disclosures	66
Item 5. Other Information	66
Item 6. Exhibits	66
SIGNATURE PAGE	67

1

PART I – FINANCIAL INFORMATION

Item 1.     Financial Statements

BancPlus Corporation and Subsidiaries

Condensed Consolidated Balance Sheets

(In Thousands, Except Share and Per Share Data)

	September 30, 2021		December 31, 2020
	(unaudited)
Assets:
Cash and due from banks	$	57,417	$	109,233
Interest bearing deposits with banks	637,652		508,196
Federal funds sold	—		20,116
Total cash and cash equivalents	695,069		637,545
Securities available for sale	540,883		311,373
Securities held to maturity - fair value: $78,905 - 2021; $94,436 - 2020	78,423		93,766
Loans held for sale	13,904		28,684
Loans	3,526,086		3,378,732
Less: Allowance for loan losses	44,001		36,000
Net loans	3,482,085		3,342,732
Premises and equipment	101,715		102,967
Operating lease right-of-use assets	35,305		35,936
Accrued interest receivable	17,120		18,061
Goodwill	2,616		2,616
Other assets	146,204		137,240
	$	5,113,324	$	4,710,920
Liabilities:
Deposits	$	4,529,868	$	4,152,810
Advances from Federal Home Loan Bank and other borrowings	31,026		33,771
Subordinated debentures	111,411		111,124
Operating lease liabilities	36,458		37,127
Accrued interest payable	2,647		2,709
Other liabilities	16,028		18,129
Total liabilities	4,727,438		4,355,670
Redeemable common stock owned by the ESOP	96,623		74,278
Shareholders' equity:
Common Stock, par value $1.00 per share.
40,000,000 authorized at September 30, 2021 and December 31, 2020; 10,112,254 and 10,079,277 issued and outstanding at September 30, 2021 and December 31, 2020, respectively	10,112		10,079
Unearned Employee Stock Ownership Plan compensation	(1,609)		(2,650)
Additional paid-in capital	66,767		67,742
Retained earnings	307,269		273,204
Accumulated other comprehensive income, net	3,347		6,875
	385,886		355,250
Less: Redeemable common stock owned by the ESOP	(96,623)		(74,278)
Total shareholders' equity	289,263		280,972
	$	5,113,324	$	4,710,920

The accompanying notes are an integral part of these condensed consolidated financial statements.

2

BancPlus Corporation and Subsidiaries

Condensed Consolidated Statements of Income

(Unaudited)

(In Thousands, Except Per Share Data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Interest income:
Interest and fees on loans	$	43,835	$	44,083	$	129,066	$	113,710
Taxable securities	2,097		1,815		6,024		5,157
Tax-exempt securities	455		573		1,473		1,942
Interest bearing bank balances and other	242		113		493		1,329
Total interest income	46,629		46,584		137,056		122,138
Interest expense:
Deposits	1,746		3,193		5,873		11,259
Short-term borrowings	—		—		—		2
Advances from Federal Home Loan Bank	78		79		233		239
Other borrowings	1,371		1,420		4,112		2,673
Total interest expense	3,195		4,692		10,218		14,173
Net interest income	43,434		41,892		126,838		107,965
Provision for loan losses	1,469		4,671		7,395		7,706
Net interest income after provision for loan losses	41,965		37,221		119,443		100,259
Other operating income:
Service charges on deposit accounts	7,484		5,690		19,226		16,674
Mortgage origination income	1,999		2,827		6,726		5,974
Debit card interchange	2,390		1,909		7,634		5,412
Securities gains, net	—		6		4		57
Other income	7,193		8,193		24,490		17,265
Total other operating income	19,066		18,625		58,080		45,382
Other operating expenses:
Salaries and employee benefits expenses	25,218		23,162		72,365		65,349
Net occupancy expenses	3,606		3,459		10,779		9,709
Furniture, equipment and data processing expenses	6,282		5,801		18,322		15,621
Other expenses	7,716		7,490		19,931		19,834
Total other operating expenses	42,822		39,912		121,397		110,513
Income before income taxes	18,209		15,934		56,126		35,128
Income tax expense	4,012		3,334		10,593		7,613
Net income	$	14,197	$	12,600	$	45,533	$	27,515
Earnings per common share - basic	$	1.43	$	1.25	$	4.58	$	2.98
Earnings per common share - diluted	$	1.41	$	1.24	$	4.53	$	2.96

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

BancPlus Corporation and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

(In Thousands)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net income	$	14,197	$	12,600	$	45,533	$	27,515
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on securities available for sale	(2,340)		(225)		(4,698)		9,498
Tax effect	583		56		1,170		(2,365)
Total other comprehensive income (loss), net of tax	(1,757)		(169)		(3,528)		7,133
Comprehensive income	$	12,440	$	12,431	$	42,005	$	34,648

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

BancPlus Corporation and Subsidiaries

Condensed Consolidated Statements of Shareholders’ Equity

(Unaudited)

(In Thousands, Except Share and Per Share Data)

				Unearned ESOP Compensation		Additional Paid-In Capital				Accumulated Other Comprehensive Income		Less: Redeemable Common Stock Owned by the ESOP		Total Shareholders' Equity
	Common Stock							Retained Earnings
	Shares	Amount
July 1, 2020	10,126,817	$	10,127	$	(3,375)	$	70,173	$	255,990	$	7,584	$	(57,545)	$	282,954
Net income	—	—		—		—		12,600		—		—		12,600
Other comprehensive loss, net	—	—		—		—		—		(169)		—		(169)
Purchase of Company stock	(12,791)	(13)		—		(588)		—		—		—		(601)
Issuance of restricted stock	18,850	19		—		(19)		—		—		—		—
Stock based compensation	—	—		—		367		—		—		—		367
Net change fair value of ESOP shares	—	—		—		—		—		—		(10,977)		(10,977)
Common stock released by ESOP	—	—		433		—		—		—		—		433
Dividends declared ($0.35 per share)	—	—		—		—		(3,527)		—		—		(3,527)
September 30, 2020	10,132,876	$	10,133	$	(2,942)	$	69,933	$	265,063	$	7,415	$	(68,522)	$	281,080
January 1, 2020	7,652,957	$	7,653	$	(4,476)	$	811	$	247,241	$	282	$	(79,308)	$	172,203
Net income	—	—		—		—		27,515		—		—		27,515
Other comprehensive income, net	—	—		—		—		—		7,133		—		7,133
Acquisition of State Capital Corp.	2,453,827	2,454		—		68,707		—		—		—		71,161
Purchase of Company stock	(12,791)	(13)		—		(588)		—		—		—		(601)
Issuance of restricted stock	39,155	39		—		(39)		—		—		—		—
Shares withheld to satisfy withholding obligation in the vesting of restricted stock	(272)	—		—		(10)		—		—		—		(10)
Stock based compensation	—	—		—		1,052		—		—		—		1,052
Net change fair value of ESOP shares	—	—		—		—		—		—		10,786		10,786
Common stock released by ESOP	—	—		1,534		—		—		—		—		1,534
Dividends declared ($1.05 per share)	—	—		—		—		(9,693)		—		—		(9,693)
September 30, 2020	10,132,876	$	10,133	$	(2,942)	$	69,933	$	265,063	$	7,415	$	(68,522)	$	281,080

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

BancPlus Corporation and Subsidiaries

Condensed Consolidated Statements of Shareholders’ Equity (Continued)

(Unaudited)

(In Thousands, Except Share and Per Share Data)

				Unearned ESOP Compensation		Additional Paid-In Capital				Accumulated Other Comprehensive Income		Less: Redeemable Common Stock Owned by the ESOP		Total Shareholders' Equity
	Common Stock							Retained Earnings
	Shares	Amount
July 1, 2021	10,111,045	$	10,111	$	(1,957)	$	66,152	$	296,900	$	5,104	$	(87,794)	$	288,516
Net income	—	—		—		—		14,197		—		—		14,197
Other comprehensive loss, net	—	—		—		—		—		(1,757)		—		(1,757)
Issuance of restricted stock	1,209	1		—		(1)		—		—		—		—
Stock based compensation	—	—		—		616		—		—		—		616
Net change in fair value of ESOP shares	—	—		—		—		—		—		(8,829)		(8,829)
Common stock released by ESOP	—	—		348		—		—		—		—		348
Dividends declared ($0.38 per share)	—	—		—		—		(3,828)		—		—		(3,828)
September 30, 2021	10,112,254	$	10,112	$	(1,609)	$	66,767	$	307,269	$	3,347	$	(96,623)	$	289,263
January 1, 2021	10,079,277	$	10,079	$	(2,650)	$	67,742	$	273,204	$	6,875	$	(74,278)	$	280,972
Net income	—	—		—		—		45,533		—		—		45,533
Other comprehensive loss, net	—	—		—		—		—		(3,528)		—		(3,528)
Issuance of restricted stock	83,317	83		—		(83)		—		—		—		—
Shares withheld to satisfy withholding obligation in the vesting of restricted stock	(4,477)	(4)		—		(225)		—		—		—		(229)
Purchase of Company stock	(45,863)	(46)		—		(2,387)		—		—		—		(2,433)
Stock based compensation	—	—		—		1,720		—		—		—		1,720
Net change fair value of ESOP shares	—	—		—		—		—		—		(22,345)		(22,345)
Common stock released by ESOP	—	—		1,041		—		—		—		—		1,041
Dividends declared ($1.14 per share)	—	—		—		—		(11,468)		—		—		(11,468)
September 30, 2021	10,112,254	$	10,112	$	(1,609)	$	66,767	$	307,269	$	3,347	$	(96,623)	$	289,263

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

BancPlus Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In Thousands)

	Nine Months Ended September 30,
	2021		2020
Cash flows from operating activities:
Net income per condensed consolidated statements of income	$	45,533	$	27,515
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	7,395		7,706
Depreciation and amortization	5,818		4,663
Net loss on sales of premises and equipment	279		294
Net gain on sales of other real estate owned	(169)		(354)
Write-downs of other real estate-owned	186		106
Deferred income tax expense	399		935
Federal Home Loan Bank stock dividends	(9)		(41)
Common stock released by ESOP	1,041		1,534
Stock based compensation expense	1,720		1,052
Origination of loans held for sale	(300,866)		(274,668)
Proceeds from loans held for sale	315,646		264,489
Earnings on bank-owned life insurance	(5,858)		(1,526)
Bargain purchase gain on merger	—		(1,078)
Net change in:
Accrued interest receivable and other assets	5,849		(2,987)
Accrued interest payable and other liabilities	(2,163)		(3,928)
Net cash from operating activities	74,801		23,712
Cash flows from investing activities:
Purchases of securities available for sale	(317,600)		(77,290)
Maturities and calls of securities available for sale	81,015		112,835
Purchases of securities held to maturity	(19,103)		(777)
Maturities, prepayments and calls of securities held to maturity	34,318		12,071
Net increase in loans	(151,332)		(465,459)
Purchases of premises and equipment	(5,188)		(6,992)
Proceeds from sales of premises and equipment	31		40
Proceeds from sales of other real estate owned	4,672		4,955
Investment in unconsolidated entities, net	(96)		(289)
Purchase of bank-owned life insurance	(10,000)		—
Proceeds from bank-owned life insurance	5,987		—
Purchases or redemptions of Federal Home Loan Bank stock	(163)		2,562
Cash received in excess of cash paid for acquisition	—		75,303
Net cash used in investing activities	(377,459)		(343,041)

7

BancPlus Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows (continued)

(Unaudited)

(In Thousands)

	Nine Months Ended September 30,
	2021		2020
Cash flows from financing activities:
Net increase (decrease) in:
Noninterest-bearing deposits	$	168,926	$	390,152
Money market, negotiable order of withdrawal, and savings deposits	265,081		21,169
Certificates of deposit	(56,950)		(36,389)
Payments on Federal Home Loan Bank advances	(120)		(14,884)
Proceeds from issuance of subordinated debentures	—		60,000
Payment of subordinated debt issuance costs	—		(1,439)
Payments on other borrowings	(2,625)		(2,625)
Cash dividends paid on common stock	(11,468)		(9,693)
Purchase of Company stock	(2,433)		(601)
Shares withheld to pay taxes on restricted stock vesting	(229)		(10)
Net cash from financing activities	360,182		405,680
Net change in cash and cash equivalents	57,524		86,351
Cash and cash equivalents at beginning of period	637,545		312,972
Cash and cash equivalents at end of period	$	695,069	$	399,323
Supplemental cash flow information:
Interest paid	$	10,280	$	10,889
Federal and state income tax payments	9,950		7,175
Acquisition of real estate in non-cash foreclosures	4,924		5,836
Fair value of assets acquired net of liabilities assumed	—		72,251

The accompanying notes are an integral part of these condensed consolidated financial statements.

8

BancPlus Corporation and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1: Basis of Presentation

BancPlus Corporation (the “Company”) is a bank holding company headquartered in Ridgeland, Mississippi operating in one reportable segment. BankPlus (the “Bank”), the principal operating subsidiary and sole banking subsidiary of the Company, is a commercial bank primarily engaged in the business of commercial and consumer banking. In addition to general and consumer banking, other products and services offered though the Bank’s subsidiaries include certain insurance and annuity services, asset and investment management and financial planning services. Oakhurst Development, Inc. (“Oakhurst”) is a real estate subsidiary originally formed by the Company to liquidate a real estate development that was acquired by the Bank through foreclosure in 2002. Oakhurst became active again in March 2009 and holds loans and other real estate.

The unaudited interim condensed consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest, and reflect all adjustments (consisting of normal recurring adjustments) that are necessary in the opinion of the Company’s management to fairly present the financial position, results of operations and cash flows of the Company. They have been derived from the audited consolidated financial statements for the fiscal year ended December 31, 2020; however, certain notes and information have been omitted from the interim periods. Therefore, these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2020. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The accounting and financial reporting policies followed by the Company conform, in all material respects, to the accounting principles generally accepted in the United States (“GAAP”) and to general practices within the financial services industry. The results of operations for the interim periods are not necessarily indicative of the results to be expected for future interim periods or for the entire year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Particularly given the effects of the COVID-19 pandemic, the allowance for loan losses, provision for loan losses, the fair value of financial instruments and the status of contingencies are particularly subject to change. Material estimates that are subject to significant change in the near term are the allowance for loan losses, provision for loan losses, valuation of other real estate owned and fair values of financial instruments. Actual results could differ from these estimates.

Recently Issued But Not Yet Effective Accounting Standards

Accounting Standards Update 2016-13 (“ASU 2016-13”), “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, which requires earlier measurement of credit losses and enhances disclosures. The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses over the life of the loan. ASU 2016-13 was originally effective for the Company for annual and interim periods beginning on January 1, 2021. Subsequently, FASB approved a deferral of the effective date. ASU 2016-13 will now be effective for the Company for annual and interim periods beginning on January 1, 2023. The Company has formed a cross functional team that is assessing data and system needs and evaluating the impact of adopting the new guidance. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the Company adopts the new standard, but has not yet determined the magnitude of the one-time adjustment or the overall impact on the Company’s consolidated financial statements.

Accounting Standards Update 2020-04 (“ASU 2020-04”), “Reference Rate Reform - Topic 848.” In March 2020, the FASB issued ASU 2020-04, which provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications, hedge accounting, and other transactions affected that reference the London Inter-Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. ASU 2020-04 is effective upon issuance and can be applied through December 31, 2022. The company is still evaluating the impact of ASU 2020-04, but does not expect it to have a material impact on the Company’s consolidated financial statements.

9

Note 2: Earnings Per Share

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted number of common shares outstanding during the period and the number of common shares that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during the reporting period.

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands except per share data)	2021		2020		2021		2020
Net income	$	14,197	$	12,600	$	45,533	$	27,515
Weighted average common shares outstanding	9,934		10,070		9,936		9,231
Diluted effect of unallocated stock	116		64		105		72
Diluted common shares	10,050		10,134		10,041		9,303
Basic earnings per common share	$	1.43	$	1.25	$	4.58	$	2.98
Diluted earnings per common share	$	1.41	$	1.24	$	4.53	$	2.96

Note 3: Business Combinations

State Capital Corp.

On April 1, 2020, the Company completed its previously announced merger with State Capital Corp. (“SCC”), the holding company of State Bank & Trust Company (“State Bank”). Pursuant to the terms of the Agreement and Plan of Share Exchange and Merger, dated September 18, 2019, by and among the Company, the Bank, SCC, and State Bank (the “Merger Agreement”), following BancPlus’ acquisition of SCC by a statutory share exchange, SCC was merged with and into the Company, with the Company surviving the merger (the “Merger”). Immediately thereafter, State Bank was merged with and into the Bank, with the Bank surviving the merger. As a result of the Merger, the Company’s geographic footprint expanded in Mississippi, Louisiana and Alabama, providing access to new markets and deposits.

Pursuant to the Merger Agreement, holders of SCC common stock received 0.6950 shares of the Company’s common stock, par value $1.00 per share, for each share of SCC common stock, par value $1.25 per share, held immediately prior to the effective time of the Merger, plus cash in lieu of fractional shares. The Company issued 2,453,827 shares of common stock to holders of SCC common stock, in addition to approximately $12,000 in lieu of fractional shares. In connection with the Merger, the Company incurred approximately $6.4 million of acquisition expenses, of which approximately $6.2 million were incurred during the nine months ended September 30, 2020. These expenses are recorded in other operating expenses and furniture, equipment and data processing expenses in the Company’s Condensed Consolidated Statement of Income for the nine months ended September 30, 2020.

The excess fair value of net assets acquired over cost paid was recorded as a gain on bargain purchase during 2020. The gain on bargain purchase was primarily the result of changes in the value of the Company’s common stock due to the timing of the closing of the Merger relative to when the Merger Agreement was signed and declines in the overall market as a result of the COVID-19 pandemic over that period.

10

The following table reflects the consideration paid and the fair value allocation of assets acquired and liabilities assumed as of the acquisition date:

(In thousands)
Purchase price allocation:
Common stock issued			$	71,161
Cash paid for fractional shares			12
Total purchase price			$	71,173
Assets acquired:
Cash and due from banks	$	75,315
Securities, Federal Home Loan Bank (“FHLB”) stock and First National Bankers Bankshares, Inc. stock	97,910
Loans, net	880,390
Premises and equipment	29,968
Accrued interest receivable	3,664
Bank-owned life insurance	28,441
Core deposit intangible	6,045
Taxes receivable	7,787
Deferred tax asset, net	5,972
Other assets	3,330
Total assets acquired	$	1,138,822
Liabilities assumed:
Deposits	$	1,024,381
Advances from FHLB and other borrowings	14,563
Subordinated debentures	11,121
Deferred compensation	10,310
Other liabilities	6,196
Total liabilities assumed	$	1,066,571
Net assets acquired			72,251
Excess of fair value of net assets acquired over consideration paid - Gain on bargain purchase			$	(1,078)

In connection with the Merger, the Company recorded a $6.0 million core deposit intangible, which will be amortized over 10 years. The Company also acquired loans with a fair value of $880.4 million, net of a $19.1 million fair value discount, which included a credit mark discount of $11.6 million.

Revenues and earnings of the acquired company since the Merger date have not been disclosed as it is not practicable as SCC was merged into BancPlus and separate financial information for SCC is not available. The following table presents unaudited pro forma information as if the Merger with SCC had occurred on January 1, 2020. This pro forma information combines the historic condensed consolidated results of operations of BancPlus and SCC after giving effect to certain adjustments, including purchase accounting fair value adjustments and amortization of intangibles, as well as the related income tax effects of those adjustments. The pro forma information does not necessarily reflect the results of operations that would have occurred had the Merger occurred on January 1, 2020.

11

	Three Months Ended		Nine Months Ended
(In thousands, except per share data)	September 30, 2020		September 30, 2020
Net interest income	$	43,828	$	123,958
Other operating income	18,626		47,034
Net income available to common shareholders	13,993		27,539
Earnings per common share:
Basic	$	1.39	$	2.74
Diluted	1.38		2.72

First Trust Corporation

On September 28, 2021, the Company entered in an Agreement and Plan of Share Exchange and Merger with First Trust Corporation (“FTC”), the parent company of First Bank and Trust (“FBT”), whereby the Company will acquire FTC and the Bank will acquire FBT (the “transaction”). The transaction is expected to close in the first quarter of 2022, subject to customary closing conditions, including receipt of required regulatory approvals and the approval by shareholders of FTC.

Note 4: Investment Securities

The following is a summary of the amortized cost and fair value of securities available for sale.

	Amortized		Gross Unrealized				Fair
(In thousands)	Cost		Gains		Losses		Value
September 30, 2021:
U.S. Government agency obligations	$	301,619	$	421	$	2,199	$	299,841
Residential mortgage-backed securities	118,554		3,522		230		121,846
Commercial mortgage-backed securities	14,764		146		16		14,894
Asset-backed securities	13,068		506		35		13,539
Corporate investments	43,000		1,210		60		44,150
State and political subdivisions	45,422		1,310		119		46,613
Total available for sale	$	536,427	$	7,115	$	2,659	$	540,883
December 31, 2020:
U.S. Government agency obligations	$	12,092	$	342	$	—	$	12,434
Residential mortgage-backed securities	181,569		5,644		1		187,212
Commercial mortgage-backed securities	16,793		538		—		17,331
Asset backed securities	13,990		543		86		14,447
Corporate investments	32,750		420		22		33,148
State and political subdivisions	45,025		1,833		57		46,801
Total available for sale	$	302,219	$	9,320	$	166	$	311,373

Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

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The following is a summary of the amortized cost and fair value of securities held to maturity.

	Amortized		Gross Unrealized				Fair
(In thousands)	Cost		Gains		Losses		Value
September 30, 2021:
States and political subdivisions	$	78,423	$	482	$	—	$	78,905
Total held to maturity	$	78,423	$	482	$	—	$	78,905
December 31, 2020:
States and political subdivisions	$	93,766	$	670	$	—	$	94,436
Total held to maturity	$	93,766	$	670	$	—	$	94,436

All mortgage-backed securities in the above tables were issued or guaranteed by U.S. government agencies or sponsored agencies.

Provided below is a summary of investment securities that were in an unrealized loss position and the length of time that individual securities have been in a continuous loss position.

	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value	Unrealized Losses
(In thousands)
September 30, 2021:
Available for sale:
U.S. Government agencies	$	255,063	$	2,199	$	—	$	—	255,063	$	2,199
Residential mortgage-backed securities	12,031		230		—		—		12,031	230
Commercial mortgage-backed securities	3,174		16		—		—		3,174	16
Asset backed securities	—		—		2,271		35		2,271	35
Corporate investments	6,941		60		—		—		6,941	60
States and political subdivisions	5,636		119		—		—		5,636	119
	$	282,845	$	2,624	$	2,271	$	35	285,116	$	2,659
December 31, 2020:
Available for sale:
Residential mortgage-backed securities	$	4,471	$	1	$	—	$	—	4,471	$	1
Commercial mortgage-backed securities	305		—		—		—		305	—
Asset backed securities	2,492		86		—		—		2,492	86
Corporate investments	9,229		22		—		—		9,229	22
States and political subdivisions	3,028		57		—		—		3,028	57
	$	19,525	$	166	$	—	$	—	19,525	$	166

The number of debt securities in an unrealized loss position increased from 13 at December 31, 2020 to 62 at September 30, 2021. The unrealized losses shown above are due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost bases, which may be at maturity, the Company does not consider these investments to be impaired on an other-than-temporary basis at September 30, 2021.

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

13

	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
(In thousands)	Cost		Value		Cost		Value
September 30, 2021:
One year or less	$	11,330	$	11,402	$	12,437	$	12,455
After one through five years	179,898		179,041		46,344		46,558
After five through ten years	204,514		205,651		16,887		17,137
After ten years	140,685		144,789		2,755		2,755
	$	536,427	$	540,883	$	78,423	$	78,905

The following is a summary of the amortized cost and fair value for investment securities which were pledged to secure public deposits and for other purposes required or permitted by law.

	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
(In thousands)	Cost		Value		Cost		Value
September 30, 2021	$	441,300	$	444,560	$	44,697	$	45,144
December 31, 2020	$	251,913	$	260,351	$	57,110	$	57,770

Note 5: Loans

The following is a summary of the Company’s loan portfolio by loan class.

(In thousands)	September 30, 2021		December 31, 2020
Secured by real estate:
Residential properties	$	773,928	$	738,340
Construction and land development	465,564		403,496
Farmland	212,645		217,104
Other commercial	1,339,214		1,224,633
Total real estate	2,791,351		2,583,573
Commercial and industrial loans	534,160		635,714
Agricultural production and other loans to farmers	101,973		85,469
Consumer and other loans	98,602		73,976
Total loans before allowance for loan losses	$	3,526,086	$	3,378,732

Loans are stated at the amount of unpaid principal, before allowance for loan losses. Interest on loans is calculated using the simple interest method on daily balances of the principal amount outstanding.

Loan Origination/Risk Management/Credit Concentration - The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. The Company’s Board of Directors reviews and approves these policies and procedures on a regular basis. Although the Company has a diversified loan portfolio, the Company has concentrations of credit risks related to the real estate market, including residential, commercial, and construction and land development lending. Most of the Company’s lending activity occurs within Mississippi, Louisiana, and Alabama.

The risk characteristics of the Company’s material portfolio segments are as follows:

Residential Real Estate Loans - The residential real estate loan portfolio consists of residential loans for single and multifamily properties. Residential loans are generally secured by owner occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can be impacted by economic conditions within their market area. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

14

Commercial Real Estate Loans - Commercial real estate loans include construction and land development loans, loans secured by farmland and other commercial real estate loans.

Construction and land development loans are usually based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are considered to be higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing.

Farmland loans are generally made for the purpose of acquiring land devoted to crop production or livestock, the propagation of timber or the operation of a similar type of business on the secured property. Sources of repayment for these loans generally include income generated from operations of a business on the property, rental income, or sales of timber. Repayment may be impacted by changes in economic conditions which affect underlying collateral values.

Commercial real estate loans typically involve larger principal amounts and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria.

Commercial and Industrial Loans - The commercial and industrial loan portfolio consists of loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchase or other expansion projects. Commercial loan underwriting standards are designed to promote relationship banking rather than transactional banking and are underwritten based on the borrower’s expected ability to profitably operate its business. The cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value. Most commercial loans are secured by assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. In the case of loans secured by accounts receivable, the availability of funds for repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.

Consumer and Other Loans - The consumer and other loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes.  Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose.  Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s market area) and the creditworthiness of a borrower.

Loans that are 30 days or more past due based on payments received and applied to the loan are considered delinquent. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions and collection efforts, that a borrower's financial condition is such that collection of interest, but not necessarily principal, is doubtful. A loan is typically placed on non-accrual when the contractual payment of principal or interest becomes 90 days past due unless the loan is well-secured and in the process of collection. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. Current year interest previously recorded, but deemed not collectible, is reversed and charged against current year income. Prior year interest previously recorded, but deemed not collectible, is charged against the allowance.

Payments subsequently received on non-accrual loans are applied to principal. Interest income is recognized to the extent that cash payments are received in excess of principal due. A loan may return to accrual status when principal and interest payments are no longer past due and collectability is reasonably assured.

The following table presents the recorded investment in nonaccrual loans, segregated by class.

15

(In thousands)	September 30, 2021		December 31, 2020
Secured by real estate:
Residential properties	$	3,318	$	3,869
Construction and land development	58		1,863
Farmland	1,893		158
Other commercial	2,324		7,947
Total real estate	7,593		13,837
Commercial and industrial loans	106		12
Agricultural production and other loans to farmers	135		85
Consumer and other loans	210		177
Total nonaccrual loans	$	8,044	$	14,111

An age analysis of past due loans (including both accruing and non-accruing loans) segregated by class of loans is as follows:

(In thousands)	Past Due 30-89 Days		Past Due 90 Days or More		Total Past Due		Current		Total Loans		Past Due 90 Days or More and Accruing
September 30, 2021
Secured by real estate:
Residential properties	$	5,427	$	2,008	$	7,435	$	766,493	$	773,928	$	696
Construction and land development	307		1,331		1,638		463,926		465,564		1,331
Farmland	189		515		704		211,941		212,645		46
Other commercial	4,037		317		4,354		1,334,860		1,339,214		14
Total real estate	9,960		4,171		14,131		2,777,220		2,791,351		2,087
Commercial and industrial loans	1,144		192		1,336		532,824		534,160		94
Agricultural production and other loans to farmers	23		226		249		101,724		101,973		94
Consumer loans	338		234		572		98,030		98,602		24
Total	$	11,465	$	4,823	$	16,288	$	3,509,798	$	3,526,086	$	2,299

(In thousands)	Past Due 30-89 Days		Past Due 90 Days or More		Total Past Due		Current		Total Loans		Past Due 90 Days or More and Accruing
December 31, 2020
Secured by real estate:
Residential properties	$	5,836	$	2,016	$	7,852	$	730,488	$	738,340	$	1,174
Construction and land development	713		3,086		3,799		399,697		403,496		1,843
Farmland	373		779		1,152		215,952		217,104		618
Other commercial	3,956		3,084		7,040		1,217,593		1,224,633		2,417
Total real estate	10,878		8,965		19,843		2,563,730		2,583,573		6,052
Commercial and industrial loans	2,195		135		2,330		633,384		635,714		135
Agricultural production and other loans to farmers	319		15		334		85,135		85,469		15
Consumer loans	444		278		722		73,254		73,976		101
Total	$	13,836	$	9,393	$	23,229	$	3,355,503	$	3,378,732	$	6,303

Impaired Loans - Impaired loans include nonperforming loans, loans modified in troubled debt restructurings (“TDRs”) where concessions have been granted to borrowers experiencing financial difficulties, and certain other loans identified by management. Certain other loans identified by management consist of performing loans with specific allocations of the allowance for loan loss. Impaired loans, or portions thereof, are charged-off when deemed uncollectible.

16

Impaired loans, segregated by class were as follows:

	September 30, 2021
	Principal		Recorded		Related
(In thousands)	Balance		Balance (1)		Allowance
Impaired loans with no related allowance:
Secured by real estate:
Residential properties	$	7,666	$	5,099	$	—
Construction and land development	3,669		1,656		—
Farmland	11,994		11,439		—
Other commercial	4,015		2,448		—
Total real estate	27,344		20,642		—
Commercial and industrial	19,723		19,393		—
Agricultural production and other loans to farmers	289		147		—
Consumer and other loans	236		210		—
Total	$	47,592	$	40,392	$	—
Impaired loans with related allowance:
Secured by real estate:
Residential properties	$	1,060	$	1,060	$	9
Construction and land development	—		—		—
Farmland	—		—		—
Other commercial	1,948		1,948		276
Total real estate	3,008		3,008		285
Commercial and industrial	2,324		2,324		991
Agricultural production and other loans to farmers	—		—		—
Consumer and other loans	—		—		—
Total	5,332		5,332		1,276
Total impaired loans	$	52,924	$	45,724	$	1,276

(1) Recorded balance represents the carrying value – the contractual principal obligation due from the customer less charge offs and payments applied.    

	December 31, 2020
	Principal		Recorded		Related
(In thousands)	Balance		Balance (1)		Allowance
Impaired loans with no related allowance:
Secured by real estate:
Residential properties	$	8,474	$	5,795	$	—
Construction and land development	5,530		3,462		—
Farmland	11,024		10,584		—
Other commercial	8,439		5,149		—
Total real estate	33,467		24,990		—
Commercial and industrial	10,386		9,962		—
Agricultural production and other loans to farmers	156		97		—
Consumer and other loans	216		177		—
Total	$	44,225	$	35,226	$	—
Impaired loans with related allowance:
Secured by real estate:
Residential properties	$	1,073	$	1,073	$	9
Construction and land development	—		—		—
Farmland	—		—		—
Other commercial	6,072		6,039		2,028
Total real estate	7,145		7,112		2,037
Commercial and industrial	4,430		4,430		2,158
Agricultural production and other loans to farmers	—		—		—
Consumer and other loans	—		—		—
Total	11,575		11,542		4,195
Total impaired loans	$	55,800	$	46,768	$	4,195

(1)Recorded balance represents the carrying value – the contractual principal obligation due from the customer less charge-offs and payments applied.

17

The average recorded investment and interest recognized for impaired loans for the three and nine months ended September 30, 2021 and 2020 are presented below.

	Three Months Ended September 30,
	2021				2020
	Average		Interest		Average		Interest
(In thousands)	Investment		Recognized		Investment		Recognized
Secured by real estate:
Residential properties	$	6,123	$	42	$	6,934	$	38
Construction and land development	1,139		23		2,026		31
Farmland	11,150		104		10,515		127
Other commercial	5,046		14		12,389		61
Total real estate	23,458		183		31,864		257
Commercial and industrial	21,728		281		1,133		7
Agricultural production and other loans to farmers	146		3		97		—
Consumer loans	210		—		180		—
Total	$	45,542	$	467	$	33,274	$	264

	Nine Months Ended September 30,
	2021				2020
	Average		Interest		Average		Interest
(In thousands)	Investment		Recognized		Investment		Recognized
Secured by real estate:
Residential properties	$	6,489	$	106	$	5,773	$	114
Construction and land development	2,107		80		2,013		96
Farmland	10,452		356		10,517		382
Other commercial	6,827		129		11,876		176
Total real estate	25,875		671		30,179		768
Commercial and industrial	20,076		753		689		20
Agricultural production and other loans to farmers	94		3		78		—
Consumer loans	191		—		182		—
Total	$	46,236	$	1,427	$	31,128	$	788

There were no modifications classified as TDRs for the nine months ended September 30, 2021 or 2020. Although there were additional modifications of terms on some loans, the prevailing modifications during the reported periods were related to converting the loans to interest only for a period of time, reductions in the interest rates, and/or extensions of payment dates or maturity dates. Because the majority of these loans were classified as impaired loans before restructuring, the modifications did not materially impact the Company’s determination of the allowance for loan losses. The Company did not forgive any principal on the above loans. The allowance for loan losses attributable to restructured loans was $169,000 and $2.0 million at September 30, 2021 and December 31, 2020, respectively. The primary reason for the decrease in the allowance for loan losses attributable to restructured loans was a $1.8 million payment received in the first quarter of 2021 related to a loan classified as a TDR in 2019. The Company defines a payment default as a payment received more than 90 days after its due date.

Note 6: Allowance for Loan Losses

As management evaluates the allowance for loan losses, it is categorized as follows: (1) specific allocations; (2) allocations for classified assets with no specific allowance, based on historical loan experience for similar loans with similar characteristics, adjusted as necessary, to reflect the impact of current conditions; and (3) general allocations for each major loan category for loans not deemed impaired or classified, segmented by loan class based on historical loss experience and other risk factors. In assessing general economic conditions, management monitors several factors, including regional and national economic conditions, real estate market conditions and recently enacted regulations with potential economic effects.

18

Credit Quality Indicators – The Company utilizes a risk grading matrix to assign a grade to each of its commercial and real estate loans. Loans are rated on a scale of 1 to 10. A description of the general characteristics of the 10 risk ratings is as follows:

•Risk Grades 1, 2, 3, 4 and 5 – These grades include loans to borrowers of solid credit quality with no higher than normal risk of loss. Borrowers in these categories have satisfactory financial strength and adequate cash flow coverage to service debt requirements. Collateral type and quality, as well as protection, are adequate. The borrower’s management is strong and capable, financial information is timely and accurate, and guarantor support is strong.

•Risk Grade 6 – Pass and Watch – Loans in this category are currently protected, but risks are emerging that warrant more than normal attention and have above average risk of loss. These factors require a higher level of monitoring and may include emerging balance sheet weaknesses, strained liquidity, increased leverage ratio, and weakening management. Collateral support is less marketable or limited use and, although the protection is sufficient, the loan-to-value ratio may not meet policy guidelines. Guarantors may have a limited ability and willingness to provide intermediate support. Also, considerations surrounding industry deterioration, increased competition and minor policy exceptions concerning structure or amortization may affect the rating of these loans.

•Risk Grade 7 – Special Mention – The Company’s special mention rating is intended to closely align with the regulatory definition. A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of repayment prospects. These weaknesses may include deteriorating balance sheets, strained liquidity and elevated leverage ratios. Cash flow and profitability are marginally sufficient to service debt and collateral is exhibiting signs of decline in value; however, protection is currently sufficient. Limited management experience or weaknesses have emerged requiring more than normal supervision and uncertainties regarding the quality of the financials are not explained. Guarantor has very limited ability and willingness to provide short-term support. Moderate policy exceptions concerning structure or amortization may be considered in order to provide relief to the borrower. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

•Risk Grade 8 – Substandard – A loan in this category is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. Factors affecting these loans may include balance sheet deterioration that has resulted in illiquid, highly leveraged or deficit net worth, cash flow that is not able to service debts as structured, collateral protection that may be inadequate, guarantor support that may be virtually non-existent, and management that is poor. Loans may require a major policy exception concerning structure or amortization. They are characterized by the distinct possibility that the Company will incur some loss if the deficiencies are not corrected.

•Risk Grade 9 – Doubtful – Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable.

•Risk Grade 10 – Loss – Loans are considered uncollectible and of such little value that continuing to carry them as an active asset is not warranted. It does not mean that there will be no recovery, but, rather, it is not practical or desirable to defer writing off these assets even though a partial recovery may be possible in the future.

Classified loans for the Company include loans in Risk Grades 8, 9 and 10. Loans may be classified but not considered impaired, due to one of the following reasons: (i) the loan falls below the established minimum dollar thresholds for loan impairment testing or (ii) the loan was tested for impairment, but not deemed to be impaired.

The following table summarizes the credit quality of the Company’s loan portfolio by loan class for the period indicated:

19

	Risk Grades		Risk Grade		Risk Grade		Risk Grade
(In thousands)	1-6		7		8		9		Total
September 30, 2021
Secured by real estate:
Residential properties	$	759,167	$	21	$	14,740	$	—	$	773,928
Construction and land development	460,712		4,107		745		—		465,564
Farmland	199,608		—		13,037		—		212,645
Other commercial	1,330,515		1,001		7,621		77		1,339,214
Total real estate	2,750,002		5,129		36,143		77		2,791,351
Commercial and industrial	510,359		—		23,756		45		534,160
Agricultural production and other loans to farmers	101,549		71		353		—		101,973
Consumer and other loans	98,302		—		300		—		98,602
Total	$	3,460,212	$	5,200	$	60,552	$	122	$	3,526,086

	Risk Grades		Risk Grade		Risk Grade		Risk Grade
(In thousands)	1-6		7		8		9		Total
December 31, 2020
Secured by real estate:
Residential properties	$	721,024	$	—	$	17,316	$	—	$	738,340
Construction and land development	401,347		—		2,149		—		403,496
Farmland	205,211		—		11,893		—		217,104
Other commercial	1,209,365		—		15,041		227		1,224,633
Total real estate	2,536,947		—		46,399		227		2,583,573
Commercial and industrial	619,086		51		16,526		51		635,714
Agricultural production and other loans to farmers	85,197		91		181		—		85,469
Consumer and other loans	73,560		—		416		—		73,976
Total	$	3,314,790	$	142	$	63,522	$	278	$	3,378,732

Transactions in the allowance for loan losses and balances in the loan portfolio by loan segment are as follows:

20

(In thousands)	Commercial and Industrial		Commercial Real Estate		Residential		Consumer and other		Total
Three Months Ended September 30, 2021
Allowance for loan losses:
Beginning balance	$	6,493	$	23,051	$	10,234	$	2,226	$	42,004
Provision for loan losses	(565)		616		352		1,066		1,469
Recoveries on loans	175		1,625		59		449		2,308
Loans charged off	(37)		(349)		(122)		(1,272)		(1,780)
Ending balance	$	6,066	$	24,943	$	10,523	$	2,469	$	44,001
Nine Months Ended September 30, 2021
Allowance for loan losses:
Beginning balance	$	6,337	$	20,163	$	7,900	$	1,600	$	36,000
Provision for loan losses	(433)		3,481		2,581		1,766		7,395
Recoveries on loans	479		2,277		340		2,046		5,142
Loans charged off	(317)		(978)		(298)		(2,943)		(4,536)
Ending balance	$	6,066	$	24,943	$	10,523	$	2,469	$	44,001
Period End Allowance Balance Allocated To:
Individually evaluated for impairment	$	991	$	276	$	9	$	—	$	1,276
Collectively evaluated for impairment	5,075		24,667		10,514		2,469		42,725
Ending balance	$	6,066	$	24,943	$	10,523	$	2,469	$	44,001

(In thousands)	Commercial and Industrial		Commercial Real Estate		Residential		Consumer and other		Unallocated		Total
Three Months Ended September 30, 2020
Allowance for loan losses:
Beginning balance	$	3,269	$	12,580	$	5,968	$	1,340	$	902	$	24,059
Provision for loan losses	2,812		1,835		170		(82)		(64)		4,671
Recoveries on loans	34		103		140		827		—		1,104
Loans charged off	(261)		(1,960)		(34)		(731)		—		(2,986)
Balance, end of year	$	5,854	$	12,558	$	6,244	$	1,354	$	838	$	26,848
Nine Months Ended September 30, 2020
Allowance for loan losses:
Beginning balance	$	2,773	$	10,766	$	5,568	$	1,135	$	1,258	$	21,500
Provision for loan losses	3,427		3,824		707		168		(420)		7,706
Recoveries on loans	148		150		237		2,619		—		3,154
Loans charged off	(494)		(2,182)		(268)		(2,568)		—		(5,512)
Ending balance	$	5,854	$	12,558	$	6,244	$	1,354	$	838	$	26,848
Period End Allowance Balance Allocated To:
Individually evaluated for impairment	$	471	$	1,949	$	17	$	—	$	—	$	2,437
Collectively evaluated for impairment	5,383		10,609		6,227		1,354		838		24,411
Ending balance	$	5,854	$	12,558	$	6,244	$	1,354	$	838	$	26,848

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The following table provides the recorded investment in loans, net of unearned income, based on the Company’s impairment methodology as of the dates presented:

(In thousands)	Commercial and Industrial		Commercial Real Estate		Residential		Consumer and other		Total
September 30, 2021
Individually evaluated for impairment	$	21,611	$	14,046	$	2,369	$	174	$	38,200
Collectively evaluated for impairment	512,549		2,003,377		771,559		200,401		3,487,886
Ending balance	$	534,160	$	2,017,423	$	773,928	$	200,575	$	3,526,086
December 31, 2020
Individually evaluated for impairment	$	14,392	$	25,234	$	6,868	$	274	$	46,768
Collectively evaluated for impairment	621,322		1,819,999		731,472		159,171		3,331,964
Ending balance	$	635,714	$	1,845,233	$	738,340	$	159,445	$	3,378,732

Note 7: Regulatory Matters

The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by state and federal banking agencies. Failure to meet minimum capital requirements triggers certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the consolidated financial statements. 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 assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

The U.S. capital rules, which in substance adopted the international Basel III Capital Rules and accordingly are referred to as the Basel III rules, became effective for both the Company and the Bank on January 1, 2015, with full compliance with all of the requirements being phased in over a multi-year schedule and fully phased in by January 1, 2019. The Basel III rules require banking institutions to comply with three minimum risk-based capital ratios for common equity Tier 1 (“CET1”) capital, Tier 1 capital, and total capital, as well as a minimum leverage ratio based on Tier 1 capital.

Under the Basel III rules, the Company must maintain a capital conservation buffer of CET1 capital above the minimum risk-based capital ratios. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. If, after deducting the buffer amount from its CET1 capital, Tier 1 capital, and total capital, any of these amounts results in a risk-based capital ratio below the minimum, a banking institution will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. The capital conservation buffer, which was 2.50% at September 30, 2021 and December 31, 2020, is included in the minimum capital requirements relative to risk-weighted assets in the following table. Management believes as of September 30, 2021 and December 31, 2020, the Company and the Bank met Basel III minimum capital requirements to which they are subject.

The Bank is also subject to capital requirements under the prompt corrective action regime. As of September 30, 2021, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. The prompt corrective action framework applies only to insured depository institutions, such as the Bank, and not to their holding companies, such as the Company. To be categorized as well capitalized, an insured depository institution must maintain certain ratios of CET1 capital, Tier 1 capital and total capital to risk-weighted assets, and of Tier 1 capital to adjusted quarterly average assets. There are no conditions or events since that notification that management believes have changed the Bank’s category. The amounts of the Bank’s capital relative to the standards for well capitalized status are set forth in the following table.

The Company’s and the Bank’s CET1 capital includes total common equity reduced by goodwill and other intangible assets, net of associated deferred tax liabilities. In connection with the adoption of Basel III, the Company elected to opt out of the requirement to include most components of accumulated other comprehensive income (loss) in CET1 capital.

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Tier 1 capital includes CET1 capital and additional Tier 1 capital. For the Company, additional Tier 1 capital at September 30, 2021 and December 31, 2020 included $51.0 million and $50.7 million of trust preferred securities issued by the trusts (net of investment in the trusts), respectively. The Bank did not have any additional Tier 1 capital beyond CET1 capital as of September 30, 2021 and December 31, 2020.

Total capital includes Tier 1 capital and Tier 2 capital. Tier 2 capital for both the Company and the Bank includes a permissible portion of the allowance for loan losses. In addition, Tier 2 capital at September 30, 2021 and December 31, 2020 for the Company includes $58.8 million and $58.6 million, respectively, of subordinated debentures. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under Basel III.

The following table presents actual and required capital ratios for the Company and the Bank under the Basel III rules.

	Actual				Minimum Requirement				Required to be  Well Capitalized
(In thousands)	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
September 30, 2021:
Company:
CET1 Capital to Risk-Weighted Assets	$	374,642	9.57	%	$	273,936	7.00	%	N/A		N/A
Tier 1 Capital to Risk-Weighted Assets	425,598		10.88	%	332,636		8.50	%	N/A		N/A
Total Capital to Risk-Weighted Assets	580,350		13.50	%	410,904		10.50	%	N/A		N/A
Tier 1 Capital to Average Assets	425,598		8.40	%	202,413		4.00	%	N/A		N/A
Bank:
CET1 Capital to Risk-Weighted Assets	$	420,455	10.77	%	$	273,372	7.00	%	$	253,845	6.50	%
Tier 1 Capital to Risk-Weighted Assets	420,455		10.77	%	331,951		8.50	%	312,425		8.00	%
Total Capital to Risk-Weighted Assets	464,456		11.89	%	410,058		10.50	%	390,531		10.00	%
Tier 1 Capital to Average Assets	420,455		8.32	%	202,059		4.00	%	252,574		5.00	%
December 31, 2020:
Company:
CET1 Capital to Risk-Weighted Assets	$	339,936	9.94	%	$	239,437	7.00	%	N/A		N/A
Tier 1 Capital to Risk-Weighted Assets	390,713		11.42	%	290,745		8.50	%	N/A		N/A
Total Capital to Risk-Weighted Assets	485,357		14.19	%	359,155		10.50	%	N/A		N/A
Tier 1 Capital to Average Assets	390,713		8.55	%	182,853		4.00	%	N/A		N/A
Bank:
CET1 Capital to Risk-Weighted Assets	$	387,231	11.36	%	$	238,629	7.00	%	$	221,584	6.50	%
Tier 1 Capital to Risk-Weighted Assets	387,231		11.36	%	289,763		8.50	%	272,719		8.00	%
Total Capital to Risk-Weighted Assets	423,231		12.42	%	357,943		10.50	%	340,898		10.00	%
Tier 1 Capital to Average Assets	387,231		8.49	%	182,531		4.00	%	228,164		5.00	%

The ability of the Company to pay future dividends, pay its expenses and retire its debt is dependent upon future income tax benefits and dividends paid to the Company by the Bank. The Bank is subject to dividend restrictions as imposed by Federal and state regulatory authorities.

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Note 8: Fair Value

Financial Instruments Measured at Fair Value

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. The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Valuations within these levels are based upon:

Level 1

Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access as of the measurement date

Level 2

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 for substantially the full term of the assets or liabilities

Level 3

Unobservable inputs that are significant to the fair value of the assets or liabilities that reflect a company’s own assumptions about the assumptions that market participants would use in pricing assets or liabilities

Management monitors the availability of observable market data to assess the appropriate classification of assets and liabilities within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. There were no transfers of financial instruments between fair value levels for any period presented.

The Company used the following methods and significant assumptions to estimate fair value.

Securities - The Company utilizes an independent pricing service to advise it on the value of the securities portfolio. Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. For these investments, the inputs used by the pricing service to determine fair value may include one, or a combination of several, observable inputs such as benchmark yields, reported trades, benchmark securities, bids, offers and reference data market research publications and are classified within Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. For Level 3 securities, in addition to the inputs noted above, inputs used by the pricing service to determine fair value may also include estimated duration, municipal bond interest rate curve, and tax effected yield. There were no Level 3 securities as of September 30, 2021 or December 31, 2020. The Company’s treasury department and Asset Liability Management Committee review the aggregate fair values of the securities portfolio.

Impaired loans - Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment on a non-recurring basis. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral-dependent loans. Specific allowances for impaired loans are based on comparisons of the recorded carrying values of the loans to the present value of the estimated cash flows of these loans at each loan’s effective interest rate or the fair value of the collateral net of selling costs if the loan is collateral dependent. Impaired loans are primarily collateral dependent loans and are assessed using a fair value approach. Fair value estimates for collateral dependent loans are derived from appraised values based on the current market value or as-is value of the property being appraised. Appraisals are based on certain assumptions, which may include construction or development status and the highest and best use of the property. The appraisals are reviewed by the Company’s appraisal department to ensure they are acceptable. Impaired loans are classified within Level 3 of the fair value hierarchy. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy.

Other Real Estate Owned - Other real estate owned is initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated cost to sell. Fair value estimates begin with obtaining a current independent appraisal or internal evaluation of the collateral value. Subsequent

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to foreclosure, valuations are performed periodically by the Company’s appraisal department and any subsequent reduction in value is recognized by a charge to income.

Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified appraisers whose qualifications and licenses have been reviewed by the Company. These appraisals are reviewed by a member of the Company’s appraisal department to ensure they are acceptable. Appraised values are adjusted down for costs associated with asset disposal. The significant unobservable inputs (Level 3) used in the fair value measurement of collateral for collateral impaired loans and other real estate owned are primarily based on appraisals, observable market conditions, and other factors which may affect collectability. The appraisals use marketability and comparability discounts, which generally range from 5% to 15%. Assessment of the significance of a specific input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset. It is reasonably possible that a change in the estimated fair value for assets measured using Level 3 inputs could occur in the future.

Assets and liabilities measured at fair value on a recurring basis are summarized below:

	Fair		Fair Value Measurements Using
(In thousands)	Value		Level 1		Level 2		Level 3
September 30, 2021
U.S. Government agency obligations	$	299,841	$	—	$	299,841	$	—
Residential mortgage-backed securities	121,846		—		121,846		—
Commercial mortgage-backed securities	14,894		—		14,894		—
Asset-backed securities	13,539		—		13,539		—
Corporate investments	44,150		—		44,150		—
State and political subdivisions	46,613		—		46,613		—
Total securities available for sale	$	540,883	$	—	$	540,883	$	—

December 31, 2020
U.S. Government agency obligations	$	12,434	$	—	$	12,434	$	—
Residential mortgage-backed securities	187,212		—		187,212		—
Commercial mortgage-backed securities	17,331		—		17,331		—
Asset backed securities	14,447		—		14,447		—
Corporate investments	33,148		—		33,148		—
State and political subdivisions	46,801		—		46,801		—
Total securities available for sale	$	311,373	$	—	$	311,373	$	—

Assets measured at fair value on a non-recurring basis are summarized below.

	Fair		Fair Value Measurements Using
(In thousands)	Value		Level 1		Level 2		Level 3
Impaired loans, net of allowance for loan losses:
September 30, 2021	$	44,448	$	—	$	—	$	44,448
December 31, 2020	$	42,573	$	—	$	—	$	42,573
Other real estate owned:
September 30, 2021	$	6,989	$	—	$	—	$	6,989
December 31, 2020	$	6,754	$	—	$	—	$	6,754

The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis.

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	Qualitative Information about Level 3 Fair Value Measurements
(In thousands)	Carrying Value		Valuation Methods	Unobservable Inputs	Range	Weighted Average
September 30, 2021
Impaired loans, net of specific allowance	$	44,448	Third-party appraisals	Selling costs	5% - 10%	6%
Other real estate owned	$	6,989	Third-party appraisals and internal evaluations	Selling costs	5% - 10%	6%

	Qualitative Information about Level 3 Fair Value Measurements
(In thousands)	Carrying Value		Valuation Methods	Unobservable Inputs	Range	Weighted Average
December 31, 2020
Impaired loans, net of specific allowance	$	42,573	Third-party appraisals	Selling costs	5% - 10%	6%
Other real estate owned	$	6,754	Third-party appraisals and internal evaluations	Selling costs	5% - 10%	6%

Fair Value of Financial Instruments

GAAP requires disclosure of fair value information about financial instruments, whether or not recognized on the balance sheet, that are not measured and reported at fair value on a recurring or non-recurring basis. 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, 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 significantly affect the estimates and, as such, the derived fair value may not be indicative of the value negotiated in an actual sale and may not be comparable to that reported by other financial institutions. In addition, the fair value estimates are based on existing financial instruments without attempting to estimate the value of anticipated business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

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The following table presents estimated fair values of the Company’s financial instruments not previously disclosed:

	September 30, 2021				December 31, 2020
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Level 1 inputs:
Cash and cash equivalents	$	695,069	$	695,069	$	637,545	$	637,545
Level 2 inputs:
Securities held to maturity	78,423		78,905		93,766		94,436
FHLB stock	2,729		2,729		2,557		2,557
Accrued interest receivable	17,120		17,120		18,061		18,061
Level 3 inputs:
Loans held for sale	13,904		13,904		28,684		28,684
Loans, net	3,482,085		3,462,588		3,342,732		3,348,872
Financial liabilities:
Level 2 inputs:
Deposits	4,529,868		4,435,783		4,152,810		4,153,402
FHLB and other borrowings	31,026		31,778		33,771		34,941
Subordinated debentures	111,411		111,411		111,124		111,124
Accrued interest payable	2,647		2,647		2,709		2,709

Note 9: Subordinated Debentures and Trust Preferred Securities

On June 4, 2020, the Company entered into a Subordinated Note Purchase Agreement with certain qualified institutional buyers and institutional accredited investors pursuant to which the Company issued and sold $60.0 million in aggregate principal amount of its 6.000% Fixed-to-Floating Rate Subordinated Notes due June 15, 2030 (the “Notes”). The Company incurred issuance costs of $1.4 million in conjunction with the issuance of the Notes. These issuance costs are netted with the balance of the Notes on the Company’s Condensed Consolidated Balance Sheets and will be amortized over the life of the Notes. The Notes initially bear interest at a rate of 6.000% per annum from and including June 4, 2020, to but excluding June 15, 2025 or the early redemption date, with interest during this period payable semiannually in arrears. From and including June 15, 2025, to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an annual floating rate equal to Three-Month Term Secured Overnight Financing Rate plus 586 basis points, with interest during this period payable quarterly in arrears. The Company used the proceeds of the private placement for general corporate purposes, including improving the Company’s liquidity and capital position.

The Notes are not redeemable by the Company, in whole or in part, prior to the fifth anniversary of the original date of issue, except that the Notes may be redeemed at any time in whole but not in part in the event of a Tier 2 Capital Event, a Tax Event, or an Investment Company Event, each as defined and described in the Notes. On or after the fifth anniversary of the original date of issue, the Notes shall be redeemable on any interest payment date at the option of the Company, in whole or in part in integral multiples of $1,000, at an amount equal to 100% of the outstanding principal amount redeemed plus accrued but unpaid interest thereon. Any partial redemption will be made on a pro rata basis as to the holders of the Notes. Any redemption of the Notes is subject to any applicable regulatory requirements and approvals.

The Company also owns the outstanding common stock of business trusts that have issued preferred capital securities to third parties. These preferred capital securities have qualified as Tier 1 capital for the Company, subject to regulatory rules and limits. These trusts used the proceeds from the issuance of the common stock and the preferred capital securities to purchase subordinated debentures issued by the Company. These subordinated debentures are these trusts’ only assets, and quarterly interest payments on these subordinated debentures are the sole source of cash for these trusts to pay quarterly distributions on the common stock and preferred capital securities. The Company has fully and unconditionally guaranteed the trusts’ obligations with respect to the preferred capital securities.

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The Company has the right to defer the payment of interest on the subordinated debentures at any time, or from time to time, for periods not exceeding five years. If interest payments on the subordinated debentures are deferred, the distributions on the trust preferred securities are also deferred. Interest on the subordinated debentures and distributions on the trust preferred securities are cumulative.

The following is a summary of subordinated debentures payable to statutory trusts.

(In thousands)	Year of Maturity	Interest Rate	September 30, 2021		December 31, 2020
First Bancshares of Baton Rouge Statutory Trust I	2034	3 month LIBOR, plus 2.50%	$	4,124	$	4,124
State Capital Statutory Trust IV	2035	3 month LIBOR, plus 1.99%	5,155		5,155
BancPlus Statutory Trust II	2036	3 month LIBOR, plus 1.50%	20,619		20,619
BancPlus Statutory Trust III	2037	3 month LIBOR, plus 1.35%	20,619		20,619
State Capital Master Trust	2037	3 month LIBOR, plus 1.46%	6,186		6,186
			$	56,703	$	56,703

The subordinated debentures payable to statutory trusts vary from the amount carried on the Condensed Consolidated Balance Sheets at September 30, 2021 due to the remaining purchase discount of $4.0 million, which was established upon the Merger with SCC and is being amortized over the remaining life of the debentures.

Interest rates adjust quarterly for the subordinated debentures with rates that are indexed with LIBOR. We are currently monitoring the actions of LIBOR’s regulator and the implementation of alternative reference rates in advance of the expected discontinuation of LIBOR to determine any potential impact on the subordinated debentures.

The Company has the right to redeem the subordinated debentures prior to maturity. Upon redemption of the subordinated debentures payable to a statutory trust, the trust will also liquidate its common stock and preferred capital securities.

Note 10: Employee Benefits

The Company has an Employee Stock Ownership Plan (“ESOP”) that covers all employees of the Bank who are at least 21 years of age and work in a position requiring at least one thousand hours of service annually. The plan also has 401(k) provisions that allow for employee tax deferred contributions. Participants may make contributions to the ESOP in accordance with applicable regulations and the ESOP’s provisions. The Company makes a 3% “safe harbor” matching contribution, plus an additional matching contribution equal to 50% of the next 2% of an employee’s salary deferral contributions in excess of 3%. Additional contributions are made to the ESOP at the discretion of the Company’s Board of Directors.

The ESOP owned 1,500,732 and 1,499,459 shares of the Company's common stock at September 30, 2021 and December 31, 2020, respectively. The ESOP entered into loans, collateralized by ESOP shares, with the Company in connection with the repurchase of shares of Company stock that were sold by participants in accordance with diversification provisions of the ESOP. A total of 176,786 shares were repurchased through 2011, an additional 77,000 shares were repurchased under this program in 2012, and 27,594 shares were repurchased under this program in 2019. These unallocated shares are released to participants proportionately as the loan is repaid. Dividends on allocated shares are recorded as dividends and charged to retained earnings. Dividends on unallocated shares that are used to repay the loan are treated as compensation expense.

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The following table presents information related to the Company’s ESOP-owned shares.

(In thousands, except share data)	September 30, 2021		December 31, 2020
Allocated shares	1,469,547		1,449,335
Unearned shares	31,185		50,124
Total ESOP shares	1,500,732		1,499,459
Fair value of unearned shares	$	2,050	$	2,569

Distributions of the ESOP may be either in cash or Company common stock. The allocated shares are subject to a put option, whereby the Company will provide a market for a specified period of time for shares distributed to participants. The put price is the appraised value of the stock. The fair value of shares of common stock held by the ESOP are deducted from permanent shareholders’ equity in the Condensed Consolidated Balance Sheets and reflected in a line item below liabilities and above shareholders’ equity. This presentation is necessary in order to recognize the put option within the ESOP-owned shares, consistent with U.S. Securities and Exchange Commission guidelines, that is present as long as the Company is not publicly traded. The Company uses a valuation by an external third party to determine the maximum possible cash obligation related to these securities. Increases or decreases in the value of the cash obligation are included in a separate line item in the Condensed Consolidated Statements of Shareholders’ Equity. The fair value of shares held by the ESOP at September 30, 2021 was $96.6 million, based on the Company’s previously disclosed appraised value of $65.75 per share of common stock. The fair value at December 31, 2020 was $74.3 million, based on the Company’s previously disclosed appraised value of $51.25 per share of common stock. As previously disclosed, these appraised values were determined solely for purposes of the ESOP’s administration and are therefore subject to certain limitations, qualifications and assumptions and may not reflect the fair value of the Company’s common stock and should not be relied on for any reason. In particular, the COVID-19 pandemic has had a significant impact on the trading markets for equity securities, including the value of equity securities of banking institutions. Neither the Company nor the ESOP has any obligation to seek an adjusted valuation, to use these appraised values for any other purpose or, if the Company or the ESOP obtains a new appraised value, to disclose such new appraised value.

State Bank Employee Stock Ownership Plan

In connection with the Company’s Merger with SCC, the State Bank & Trust Company Employee Stock Ownership Plan (“State Bank ESOP”) was amended on March 17, 2020, to be terminated effective March 31, 2020. As of March 31, 2020, all State Bank ESOP participants were fully vested in their respective account balances, no additional contributions were permitted by either the Company or the State Bank ESOP participants, and no additional participants were permitted to enter the State Bank ESOP. All shares of SCC common stock held in the State Bank ESOP were allocated to participants. The Company has no contribution obligations or compensation expense with respect to the State Bank ESOP. The Company received approval of the termination from the Internal Revenue Service (“IRS”) and all assets held by the State Bank ESOP have been distributed in accordance with its terms.

In connection with the Merger, all shares of SCC common stock held in the State Bank ESOP were converted into shares of the Company’s common stock using the exchange ratio provided for in the Merger Agreement. Distributions from the State Bank ESOP may be either in cash or Company common stock. The shares of Company common stock distributed by the State Bank ESOP were subject to a put option so long as the Company was not publicly traded and the valuation obtained for purposes of the ESOP was used to determine the put option price under the State Bank ESOP. As of September 30, 2021 and December 31, 2020, the State Bank ESOP held zero and 52,204 shares of Company common stock, respectively.

State Bank Defined Contribution Plan

On March 31, 2020, the State Bank & Trust Company 401(k) Plan (“State Bank 401(k)”) was amended to be terminated effective as of the same date in connection with the Merger. As of March 31, 2020, all State Bank 401(k) participants were fully vested in their respective account balances, no additional contributions were permitted by either the Company or the State Bank 401(k) participants, and no additional participants were permitted to enter into the State Bank 401(k). The Company has no contribution obligations or compensation expense with respect to the State Bank 401(k). The Company received approval of the termination from the IRS and has distributed all assets held by the State Bank 401(k) in accordance with its terms.

State Bank Defined Benefit Pension Plan

As a result of the Merger, the Company assumed the Mississippi Southern Bank Pension Plan (“State Bank Pension Plan”), a defined benefit pension plan which was closed to new participants and benefits were frozen effective as of December 31, 2002.

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While no additional benefits accrue, the Company’s cumulative obligation is subject to adjustment due to changes in actuarial assumptions such as expected mortality and changes in interest rates. Net periodic pension costs for the quarterly period ended September 30, 2021 were not material to the Company’s Condensed Consolidated Statements of Income. The Company received approval of the termination of the State Bank Pension Plan from the IRS and plans to distribute all assets held by the State Bank Pension Plan in accordance with its terms as soon as reasonably possible.

Note 11: Equity

The Company’s Articles of Incorporation authorize 10,000,000 shares of preferred stock with no par value, which may be issued from time to time and in one or more classes or series upon authorization of the Board of Directors. At September 30, 2021 and December 31, 2020, there were zero shares of preferred stock issued and outstanding.

Note 12: Stock Based Compensation

Under the Company’s long-term incentive program, certain officers, employees and directors are eligible to receive equity-based awards under the 2018 Long-Term Incentive Plan (“LTIP”). Restricted stock awards (“RSAs”) granted under the LTIP generally vest over one to five years. Unvested RSAs are included in the Company’s common stock outstanding. Compensation expense for RSAs granted under the LTIP is recognized over the vesting period of the awards based on the fair value of the stock at the grant date, with forfeitures recognized as they occur.

Stock based compensation that has been charged against income was $1.7 million for the nine months ended September 30, 2021 and $1.1 million for same period of 2020. There were 1,830 and zero shares forfeited during the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021, there was $6.0 million of total unrecognized compensation cost related to unvested RSAs. The cost is expected to be recognized over a remaining weighted average period of 3.0 years.

A summary of the Company’s equity-based award activity and related information for the Company’s RSAs is as follows:

	Nine Months Ended
	September 30, 2021			September 30, 2020
	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Beginning of period	91,109	$	50.60	69,097	$	53.67
Granted	85,147	51.59		39,155	45.36
Vested	(33,545)	52.03		(17,143)	51.03
Forfeited	(1,830)	49.46		—	—
End of period	140,881	$	50.88	91,109	$	50.60

Note 13: Contingencies

On March 20, 2019, a complaint (the “Complaint”), Mills v. BankPlus, et al., Case #3:19-cv-00196-CWR-FKB, was filed in the United States District Court for the Southern District of Mississippi, Northern Division, by Alysson Mills, in her capacity as Court-appointed Receiver for Arthur Lamar Adams (“Adams”) and Madison Timber Properties, LLC (“Madison Timber”), naming the Bank, three former Bank employees, one then-current Bank employee and other defendants, including defendants affiliated and unaffiliated with the Bank (“Defendants”). The Complaint seeks to recover damages from the Defendants for the benefit of the receivership estate related to certain investors who were allegedly defrauded by Adams and Madison Timber, whose actions were allegedly attributable to the actions of the Defendants that allegedly enabled negligent, illegal or fraudulent activities engaged in by Adams and Madison Timber. A brief description of the cause of action on the cover sheet filed with the Complaint includes securities, civil conspiracy, aiding and abetting, negligence, and other possible causes of action. The amount of damages (including punitive damages) requested against the Defendants in the Complaint is unspecified. On January 4, 2021, the plaintiff, Mills, filed an Amended Complaint. Answers and/or Motions to Dismiss the Amended complaint were filed by the Defendants. On July 8, 2021, the Court denied the Motion to Dismiss filed by the Bank. A related motion for reconsideration was filed by the Bank on August 9, 2021. On September 30, 2021, an order was entered to consolidate for purposes of discovery this case (No.

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3:19-cv-00196-CWR-FKB) with three other related cases filed by Mills, the Receiver. By subsequent text-only order (No. 3:18-cv-00866-CWR-FKB) dated October 10, 2021, the four consolidated cases are stayed until January 31, 2022.

In addition to the above, the Company, including subsidiaries, is party to various legal proceedings arising in the ordinary course of business. We do not believe that loss contingencies, if any, arising from pending litigation and regulatory matters will have a material adverse effect on our consolidated financial position or liquidity.

Note 14: COVID-19

In response to the economic impact of the COVID-19 pandemic, on March 27, 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. It contained substantial lending, tax and spending provisions, including creating and appropriating an initial $39 billion of funding to the Paycheck Protection Program (“PPP”), designed to aid small and medium-sized businesses through federally guaranteed, forgivable loans distributed by banks. On April 24, 2020, Congress enacted the Paycheck Protection Program and Healthcare Enhancement Act (the “Enhancement Act”) to, among other things, increase the available funding under the PPP by $310 billion to a total of $659 billion. The deadline for the first round of loan applications was August 8, 2020.

The Consolidated Appropriations Act, enacted on December 27, 2020, provided additional funding for the PPP of approximately $284 billion and allowed eligible borrowers, including certain borrowers who already received a PPP loan, to apply for PPP loans through March 31, 2021. Subsequently, the American Rescue Plan Act of 2021, enacted on March 11, 2021, expanded the eligibility criteria for both first and second draw PPP loans and revised the exclusions from payroll costs for purposes of loan forgiveness. The PPP Extension Act of 2021, enacted on March 30, 2021, extended the PPP through May 31, 2021.

As of September 30, 2021, 5,756 Bank PPP loans totaling $348.7 million had been forgiven and paid by the Small Business Administration or paid off by the customer. As of September 30, 2021, the Company held 1,948 loans for customers under the PPP, totaling approximately $101.0 million. The loans have maturities ranging from February 2022 to April 2028. The Company expects to recognize total fee income of approximately $5.2 million over the lives of the remaining loans.

The CARES Act and related guidance from the federal banking agencies also provide financial institutions the option to temporarily suspend requirements under GAAP related to classification of certain loan modifications as TDRs, to account for the current and anticipated effects of COVID-19. The CARES Act, as amended by the Consolidated Appropriations Act, 2021, specified that COVID-19 related loan modifications executed between March 1, 2020 and the earlier of (i) 60 days after the date of termination of the national emergency declared by the President and (ii) January 1, 2022, on loans that were current as of December 31, 2019 are not subject to TDR accounting requirements under GAAP. Additionally, under April 2020 interagency guidance from the federal banking agencies, other short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs under Accounting Standards Codification Subtopic 310-40, “Troubled Debt Restructuring by Creditors.” These modifications include short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. The federal banking agencies also have encouraged banks to work with their borrowers to modify loans as may be appropriate.

As of September 30, 2021, the Company had granted temporary modifications on 1,892 outstanding loans totaling approximately $735.0 million, or 20.8% of total outstanding loans, primarily secured by 1-4 family residences and multi-tenant retail commercial real estate. As of September 30, 2021, three loans totaling $27.2 million, or 0.8% of the Company’s loan portfolio, were still in deferment.

Economic uncertainties have arisen which may negatively affect the financial position, results of operations and cash flows of the Company. The duration of these uncertainties and ultimate financial effects cannot be reasonably estimated at this time.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Unless otherwise indicated, references in this report to “we”, “us”, “our company”, “the Company”, or “BancPlus” refer to BancPlus Corporation and its subsidiaries, on a consolidated basis. All references to “BankPlus” or “the Bank” refer to BankPlus, our wholly-owned subsidiary.

In November 2020, the Securities and Exchange Commission (the “SEC”) issued Release No. 33-10890 (the “Release”), “Management’s Discussion and Analysis, Selected Financial Data, and Supplementary Financial Information” which will become fully effective for a company’s first fiscal year that ends on or after August 9, 2021, with voluntary compliance permitted on or after February 10, 2021. BancPlus has adopted early this Release in this Quarterly Report on Form 10-Q, and has eliminated from this document the items that are no longer required, including the contractual obligations table, as well as

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incorporating the other required changes intended by the Release to modernize, simplify and enhance certain financial disclosure requirements. The following discussion and analysis of BancPlus’ financial condition and results of operations should be read in conjunction with the unaudited interim condensed consolidated financial statements and related notes contained in Item 1 of this report.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains estimates, predictions, opinions, projections and other “forward-looking statements” as that phrase is defined in the Private Securities Litigation Reform Act of 1995 about BancPlus. Such statements include, without limitation, references to the Company’s predictions or expectations of future business or financial performance as well as its goals and objectives for future operations, financial and business trends, business prospects, and management’s outlook or expectations for earnings, revenues, expenses, capital levels, liquidity levels, asset quality or other future financial or business performance, strategies or expectations, and are subject to risks and uncertainties. These statements often, but not always, are preceded by, followed by or otherwise include the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “continue,” “seek,” “plan,” “can,” “should,” “could,” “would,” “will,” “to be,” “predict,” “potential,” “may,” “likely,” “will likely result,” “target,” “project” and “outlook” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry based on certain assumptions and beliefs of the Company’s management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

There are or will be important risk factors that could cause actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following:

•the effects of the novel coronavirus and variants thereof, including the delta variant (“COVID-19”) pandemic, on our business, financial condition and results of operations and on our customers, our employees, our third-party service providers and the economy, especially as a vaccine becomes widely available;

•our ability to adequately measure and limit our credit risk;

•factors that can impact the performance of our loan portfolio, including real estate values and liquidity in our primary market areas, the financial health of our commercial borrowers and the success of construction projects that we finance, including any loans acquired in acquisition transactions;

•possible additional loan losses and impairment of the collectability of loans, particularly as a result of the policies and programs implemented by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, including its automatic loan forbearance provisions, the Paycheck Protection Program (“PPP”) and complying with government-imposed foreclosure moratoriums;

•our ability to prudently manage our growth and execute our strategy;

•our ability to complete the pending acquisition of First Trust Corporation (“FTC”) on the terms proposed, which is subject to a number of conditions, risks and uncertainties, including the possibility that the proposed acquisition does not close when expected or at all because all conditions to closing are not received or satisfied on a timely basis or at all, the failure to close for any other reason, diversion of management time on acquisition-related issues and the reaction to the acquisition of our customers, employees and counterparties;

•our ability to successfully integrate and fully realize the cost savings and other benefits of our acquisitions, manage risks related to business disruption following those acquisitions, and post-acquisition customer acceptance of the Company’s products and services and related customer disintermediation, including our pending acquisition of FTC;

•the composition of our management team and our ability to attract and retain key personnel;

•changes in management personnel;

•geographic concentration of our business within Mississippi, Alabama and Louisiana;

•our ability to attract and retain customers;

•increased competition in the financial services industry, particularly from regional and national institutions;

•further government restrictions on overdraft programs;

•failure of our risk management framework;

•systems failures, unauthorized access, cyber-crime and other threats to data security or interruptions involving our information technology and telecommunications systems or third-party servicers, particularly in light of widespread remote work arrangements due to the COVID-19 pandemic or due to our recent core processing software conversion;

•difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the markets in which we operate and in which our loans are concentrated, including declines in housing markets, an increase in unemployment levels and slowdowns in economic growth, including as a result of the COVID-19 pandemic;

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•our ability to maintain our historical rate of growth;

•our ability to manage the risks associated with our growth and expansion through de novo branching;

•our ability to identify potential candidates for, consummate, and achieve synergies resulting from, potential future acquisitions;

•deterioration of our asset quality;

•changes in the value of collateral securing our loans;

•changes in the laws, rules, regulations, interpretations, policies or stimulus programs relating to financial institution, accounting, tax, trade, monetary and fiscal matters, and the uncertainty of the short- and long-term impacts of such changes;

•further government intervention in the U.S. financial system, particularly in response to the COVID-19 pandemic;

•the effects of regional or national civil unrest (including any resulting branch closures or damage);

•compliance with governmental and regulatory requirements, including relating to banking, consumer protection, securities and tax matters;

•operational risks associated with our business;

•volatility and direction of market interest rates, including as a result of the COVID-19 pandemic;

•our ability to maintain important deposit customer relationships and our reputation or otherwise avoid liquidity risks;

•the obligations associated with being a public reporting company;

•the commencement and outcome of litigation and other legal proceedings against us or to which we may become subject;

•natural disasters and adverse weather, public health crises, acts of terrorism, outbreaks of hostilities or other international or domestic calamities, and other matters beyond our control; and

•other factors that are discussed in the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the annual period ended December 31, 2020, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021 and in this Quarterly Report on Form 10-Q.

New factors emerge from time to time, and it is not possible for us to predict which will arise. The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in our Annual Report on Form 10-K for the year ended December 31, 2020, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021 and in this Quarterly Report on Form 10-Q. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or revise any forward-looking statement, whether written or oral, and whether as a result of new information, future developments or otherwise, except as specifically required by law.

Overview

BancPlus is a bank holding company headquartered in Ridgeland, Mississippi. Its wholly-owned bank subsidiary, BankPlus, offers a full suite of products and services to a broad spectrum of customers, including individuals, businesses and public entities. As of September 30, 2021, we operated 79 branch offices across Mississippi, Louisiana and Alabama. Our franchise is built on a community banking approach focused on personalized, relationship-driven service combined with local market management and expertise. We have one reportable segment.

BancPlus’ business strategy is to provide exceptional community banking services and financial solutions within its markets, which enables us to fulfill our core purpose of enriching lives and building stronger communities. We believe our team of local, experienced and relationship-focused bankers, along with strong brand recognition in our communities, differentiate us from our competitors. As a result, we have a granular, stable deposit mix and a diversified loan portfolio. As of September 30, 2021, BancPlus held $4.530 billion of total deposits, and our deposit base consisted of 96.3% core deposits, defined as total deposits less brokered deposits and time deposits greater than $250,000, with a total deposit cost of 0.18%. Our loan portfolio was comprised of 75.3% commercial loans and 24.7% consumer loans for the same period. BancPlus currently holds meaningful market share in a number of attractive markets in Mississippi, including the number three position based on deposits in the Jackson, Mississippi metropolitan statistical area as of June 30, 2021, and we believe we are well-positioned for future growth.

2021 Third Quarter Highlights

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•Net income for the nine months ended September 30, 2021 was $45.5 million, compared with $27.5 million for the same period of 2020

•Diluted earnings per share for the nine months ended September 30, 2021 were $4.53, compared with $2.96 for the same period of 2020

•Net interest income was $126.8 million for the nine months ended September 30, 2021, compared with $108.0 million for the same period of 2020

•Total loans held for investment were $3.526 billion at September 30, 2021, compared with $3.379 billion at December 31, 2020

Recent Developments

First Trust Corporation

On September 28, 2021, the Company entered in an Agreement and Plan of Share Exchange and Merger (the “definitive agreement”) with FTC, the parent company of First Bank and Trust (“FBT”), whereby the Company will acquire FTC and the Bank will acquire FBT (the “transaction”). The transaction is expected to close in the first quarter of 2022, subject to customary closing conditions, including receipt of required regulatory approvals and the approval by shareholders of FTC.

Other recent developments at September 30, 2021 did not significantly change from the recent developments as of December 31, 2020, which are disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020, and as of June 30, 2021 and March 31, 2021, which are disclosed in our Quarterly Reports on Form 10-Q for the quarters ended June 30, 2021 and March 31, 2021.

Results of Operations

The following discussion of BancPlus’ results of operations compares the three and nine months ended September 30, 2021 to the three and nine months ended September 30, 2020. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2021.

Net Income

Net income for the three months ended September 30, 2021 and 2020 was $14.2 million and $12.6 million, respectively. BancPlus’ annualized return on average assets for the three months ended September 30, 2021 and 2020 was 1.11% and 1.10%, respectively. BancPlus’ annualized return on average equity for the three months ended September 30, 2021 and 2020 was 14.67% and 14.59%, respectively.

Net income for the nine months ended September 30, 2021 and 2020 was $45.5 million and $27.5 million, respectively. BancPlus’ annualized return on average assets for the nine months ended September 30, 2021 and 2020 was 1.22% and 0.92%, respectively. BancPlus’ annualized return on average equity for the nine months ended September 30, 2021 and 2020 was 16.36% and 11.83%, respectively.

Net Interest Income

Net interest income represents interest income less interest expense. BancPlus generates interest income from interest, dividends and fees received on interest-earning assets, including loans and investment securities. BancPlus incurs interest expense from interest paid on interest-bearing liabilities, including interest-bearing deposits, borrowings and other forms of indebtedness. Net interest income typically is the most significant contributor to BancPlus’ net income. To evaluate net interest income, BancPlus measures and monitors: (i) yields on its loans and other interest-earning assets; (ii) the costs of its deposits and other funding sources; (iii) its net interest spread; and (iv) its net interest margin. Net interest spread is the difference between rates earned on interest-earning assets and rates paid on interest-bearing liabilities. Net interest margin is calculated as the annualized net interest income divided by average interest-earning assets. Because noninterest-bearing sources of funds, such as noninterest-bearing deposits and shareholders’ equity, also fund interest-earning assets, net interest margin includes the benefit of these noninterest-bearing sources.

Changes in market interest rates and interest BancPlus earns on interest-earning assets or pays on interest-bearing liabilities, as well as the volume and types of interest-earning assets, interest-bearing and noninterest-bearing liabilities and shareholders’ equity, usually have the largest impact on periodic changes in its net interest spread, net interest margin and net interest income. BancPlus measures net interest income before and after the provision for loan losses that BancPlus maintains.

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For the three months ended September 30, 2021, net interest income was $43.4 million, an increase of $1.5 million, or 3.7%, compared to net interest income of $41.9 million for the three months ended September 30, 2020. The increase in net interest income was primarily the result of increased interest-earning assets as a result of organic loan growth and the increase in our securities portfolio in the current year.

Net interest margin for the three months ended September 30, 2021 decreased 36 basis points to 3.66% from 4.02% for the same period of 2020 as the result of the lower interest rate environment in the current year.

For the nine months ended September 30, 2021, net interest income was $126.8 million, an increase of $18.9 million, or 17.5%, compared to net interest income of $108.0 million for the same period of 2020. The increase was primarily the result of increased interest-earning assets as a result of organic loan growth and the increase in our securities portfolio in the current year.

Net interest margin for the nine months ended September 30, 2021 decreased 25 basis points to 3.65% from 3.90% for the same period of 2020 as the result of the lower interest rate environment in the current year.

Our average interest-earning assets at September 30, 2021, increased $942.0 million, or 25.49%, to $4.637 billion from $3.695 billion at September 30, 2020. BancPlus’ average interest-bearing liabilities at September 30, 2021 increased $556.2 million, or 20.74%, to $3.238 billion from $2.682 billion at September 30, 2020. This increase in BancPlus’ average interest-earning assets and interest-bearing liabilities was primarily due to our previously disclosed merger with State Capital Corp. (“SCC”), in which BancPlus acquired SCC, the holding company of State Bank & Trust Company (“State Bank”) by a statutory share exchange and SCC was merged with and into BancPlus and State Bank was merged with and into BankPlus, with BancPlus and BankPlus surviving the mergers, which closed on April 1, 2020, as well as organic loan growth and increases in our securities portfolio. The ratio of BancPlus’ average interest-earning assets to average interest-bearing liabilities was 143.2% and 137.7% at September 30, 2021 and 2020, respectively.

BancPlus’ average interest-earning assets produced a tax-equivalent yield of 3.93% and 3.94% for the three and nine months ended September 30, 2021, respectively, compared to 4.47% and 4.41% for the three and nine months ended September 30, 2020, respectively. The average rate paid on interest-bearing liabilities was 0.39% and 0.42% for the three and nine months ended September 30, 2021, respectively, compared to 0.63% and 0.70% for the three and nine months ended September 30, 2020, respectively. These year over year decreases in yields reflect the current low interest rate environment.

Average Balances and Yields

The following tables show, for the three and nine months ended September 30, 2021 and 2020, the average balances of each principal category of BancPlus’ assets, liabilities and shareholders’ equity, and an analysis of net interest income. The average balances are principally daily averages and, for loans, include both performing and nonperforming balances. These tables are presented on a tax-equivalent basis, if applicable.

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	Three Months Ended September 30,
	2021						2020
(Dollars in thousands)	Average Balance		Interest & Fees		Yield / Rate (4)		Average Balance		Interest & Fees		Yield / Rate (4)
ASSETS:
Interest-earning assets:
Cash investments:
Interest-bearing cash deposits	$	596,624	$	231	0.15	%	$	278,871	$	75	0.11	%
Federal funds sold	—		—		—	%	44,307		31		0.28	%
	596,624		231		0.15	%	323,178		106		0.13	%
Investment securities:
Taxable investment securities	549,569		2,097		1.53	%	345,536		1,815		2.10	%
Tax-exempt investment securities	79,118		455		2.30	%	98,198		573		2.33	%
Total securities	628,687		2,552		1.62	%	443,734		2,388		2.15	%
Loans (1)	3,517,978		43,835		4.98	%	3,395,441		44,083		5.19	%
Federal Home Loan Bank (“FHLB”) stock	3,576		11		1.23	%	5,025		7		0.56	%
Total interest-earning assets	4,746,865		46,629		3.93	%	4,167,378		46,584		4.47	%
Noninterest-earning assets	329,425						378,971
Total assets	$	5,076,290					$	4,546,349
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Interest-bearing liabilities:
Interest-bearing transaction deposits	$	1,468,126	$	717	0.20	%	$	1,213,970	$	1,313	0.43	%
Savings and money market deposits	1,021,448		186		0.07	%	876,706		357		0.16	%
Time deposits	641,501		843		0.53	%	719,566		1,523		0.85	%
Federal funds purchased	—		—		—	%	—		—		—	%
FHLB advances	20,534		78		1.52	%	20,725		79		1.52	%
Other borrowings	11,223		110		3.92	%	14,723		144		3.91	%
Subordinated debentures	111,344		1,261		4.53	%	110,982		1,276		4.60	%
Total interest-bearing liabilities	3,274,176		3,195		0.39	%	2,956,672		4,692		0.63	%
Noninterest-bearing liabilities:
Noninterest-bearing transaction deposits	1,364,915						1,175,118
Other noninterest-bearing liabilities	53,245						71,018
Total noninterest-bearing liabilities	1,418,160						1,246,136
Shareholders’ equity (6)	383,954						343,541
Total liabilities and shareholders’ equity	$	5,076,290					$	4,546,349
Net interest income/net interest margin (2)			43,434		3.66	%			41,892		4.02	%
Net interest spread (5)					3.54	%					3.84	%
Taxable equivalent adjustment:
Tax-exempt investment securities (3)			146						184
Net interest income/net interest margin (2)			$	43,580	3.67	%			$	42,076	4.04	%

________________________________

(1)Average loan balances include nonaccrual loans.

(2)Net interest margin during the periods presented represents: (i) the difference between interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (ii) average interest-earning assets for the period.

(3)Interest income and averages rates for tax exempt securities are presented on a tax-equivalent basis, assuming a combined federal and state income tax rate of 25% for 2021 and 2020.

(4)Yields and rates are annualized.

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(5)Net interest spread is the yield on BancPlus’ total interest-earning assets less the yield on its interest-bearing liabilities.

(6)Includes Employee Stock Ownership-owned shares.

	Nine Months Ended September 30,
	2021						2020
(Dollars in thousands)	Average Balance		Interest & Fees		Yield / Rate (4)		Average Balance		Interest & Fees		Yield / Rate (4)
ASSETS:
Interest-earning assets:
Cash investments:
Interest-bearing cash deposits	$	559,746	$	465	0.11	%	$	283,267	$	1,046	0.49	%
Federal funds sold	7,070		11		0.21	%	55,101		241		0.58	%
	566,816		476		0.11	%	338,368		1,287		0.51	%
Investment securities:
Taxable investment securities	511,923		6,024		1.57	%	392,228		5,157		1.75	%
Tax-exempt investment securities	84,939		1,473		2.31	%	47,192		1,942		5.49	%
Total securities	596,862		7,497		1.67	%	439,420		7,099		2.15	%
Loans (1)	3,469,520		129,066		4.96	%	2,912,471		113,710		5.21	%
FHLB stock	3,509		17		0.65	%	4,481		42		1.25	%
Total interest-earning assets	4,636,707		137,056		3.94	%	3,694,740		122,138		4.41	%
Noninterest-earning assets	333,231						316,742
Total assets	$	4,969,938					$	4,011,482
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Interest-bearing liabilities:
Interest-bearing transaction deposits	$	1,452,965	$	2,278	0.21	%	$	1,175,152	$	4,691	0.53	%
Savings and money market deposits	982,220		696		0.09	%	779,321		1,973		0.34	%
Time deposits	659,361		2,899		0.59	%	615,619		4,595		1.00	%
Federal funds purchased	—		—		—	%	201		2		1.33	%
FHLB advances	20,567		233		1.51	%	22,222		239		1.43	%
Other borrowings	12,087		352		3.88	%	15,585		453		3.88	%
Subordinated debentures	111,248		3,760		4.51	%	74,151		2,220		3.99	%
Total interest-bearing liabilities	3,238,448		10,218		0.42	%	2,682,251		14,173		0.70	%
Noninterest-bearing liabilities:
Noninterest-bearing transaction deposits	1,306,105						948,275
Other noninterest-bearing liabilities	53,169						70,339
Total noninterest-bearing liabilities	1,359,274						1,018,614
Shareholders’ equity (6)	372,216						310,617
Total liabilities and shareholders’ equity	$	4,969,938					$	4,011,482
Net interest income/net interest margin (2)			126,838		3.65	%			107,965		3.90	%
Net interest spread (5)					3.52	%					3.70	%
Taxable equivalent adjustment:
Tax-exempt investment securities (3)			474						638
Net interest income/net interest margin (2)			$	127,312	3.66	%			$	108,603	3.92	%

________________________________

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(1)Average loan balances include nonaccrual loans.

(2)Net interest margin during the periods presented represents: (i) the difference between interest income on interest-earning assets and the interest expense on interest-bearing liabilities, divided by (ii) average interest-earning assets for the period.

(3)Interest income and averages rates for tax exempt securities are presented on a tax-equivalent basis, assuming a combined federal and state income tax rate of 25% for 2021 and 2020.

(4)Yields and rates are annualized.

(5)Net interest spread is the yield on BancPlus’ total interest-earning assets less the yield on its interest-bearing liabilities.

(6)Includes Employee Stock Ownership-owned shares.

Rate/Volume Analysis

Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in average interest rates. The following table presents the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities. It distinguishes between the changes related to the outstanding balances and those due to changes in interest rates. The change in interest attributable to rate has been determined by applying the change in rate between periods to average balances outstanding in the earlier period. The change in interest due to volume has been determined by applying the rate from the later period to the change in average balances outstanding between periods. The following table presents the changes in the volume and rate of BancPlus’ interest-bearing assets and liabilities for the dates indicated:

	Three Months Ended September 30, 2021 Compared with Three Months Ended September 30, 2020
	Change Due To:
(Dollars in thousands)	Volume		Rate		Interest Variance
Interest-earning assets:
Cash investments	$	106	$	19	$	125
Investment securities:
Taxable investment securities	779		(497)		282
Tax-exempt investment securities	(110)		(8)		(118)
Total securities	669		(505)		164
Loans, net	1,527		(1,775)		(248)
Federal Home Loan Bank stock	(4)		8		4
Total interest-earning assets	$	2,298	$	(2,253)	$	45
Interest-bearing liabilities:
Interest-bearing transaction deposits	$	124	$	(720)	$	(596)
Savings and money market deposits	26		(197)		(171)
Time deposits	(103)		(577)		(680)
Federal funds purchased	—		—		—
FHLB advances	(1)		—		(1)
Other borrowings	(34)		—		(34)
Subordinated debentures	4		(19)		(15)
Total interest-bearing liabilities	$	16	$	(1,513)	$	(1,497)
Net interest income	$	2,282	$	(740)	$	1,542

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	Nine Months Ended September 30, 2021 Compared with Nine Months Ended September 30, 2020
	Change Due To:
(Dollars in thousands)	Volume		Rate		Interest Variance
Interest-earning assets:
Cash investments	$	192	$	(1,003)	$	(811)
Investment securities:
Taxable investment securities	1,408		(541)		867
Tax-exempt investment securities	655		(1,124)		(469)
Total securities	2,063		(1,665)		398
Loans, net	20,722		(5,366)		15,356
Federal Home Loan Bank stock	(5)		(20)		(25)
Total interest-earning assets	$	22,972	$	(8,054)	$	14,918
Interest-bearing liabilities:
Interest-bearing transaction deposits	$	436	$	(2,849)	$	(2,413)
Savings and money market deposits	144		(1,421)		(1,277)
Time deposits	192		(1,888)		(1,696)
Federal funds purchased	—		(2)		(2)
FHLB advances	(19)		13		(6)
Other borrowings	(102)		1		(101)
Subordinated debentures	1,254		286		1,540
Total interest-bearing liabilities	$	1,905	$	(5,860)	$	(3,955)
Net interest income	$	21,067	$	(2,194)	$	18,873

Provision for Loan Losses

The provision for loan losses is the amount of expense that, based on BancPlus’ judgment, is required to maintain the allowance for loan losses at an adequate level to absorb probable losses inherent in the loan portfolio at the balance sheet date and that, in management’s judgment, is appropriate under relevant accounting guidance. The determination of the provision for loan losses is complex and involves a high degree of judgment and subjectivity.

For the three months ended September 30, 2021, the provision for loan losses was $1.5 million, compared to $4.7 million for the same period of 2020, a decrease of $3.2 million, or 68.6%. For the nine months ended September 30, 2021, the provision for loan losses was $7.4 million, compared to $7.7 million for the same period of 2020, a decrease of $311,000, or 4.0%. The decrease for these year to date periods is primarily attributable to the impact of the COVID-19 pandemic on the prior year period, including the impact of the CARES Act measures to support individuals and businesses in maintaining solvency through monetary relief, including in the form of financing, loan forgiveness and automatic forbearance.

Noninterest Income

Noninterest income consists of, among other things: (i) service charges on deposit accounts; (ii) mortgage origination income; (iii) debit card interchange fees; (iv) income from fiduciary activities; (v) ATM income; and (vi) other noninterest income. BancPlus’ income from service charges on deposit accounts and debit card interchange fees are largely impacted by the volume, growth and type of deposits BancPlus holds, which are impacted by prevailing market conditions for BancPlus’ deposit products, market interest rates, marketing efforts, and other factors.

Service charges on deposit accounts includes fees and miscellaneous charges on deposit products offered by BancPlus. Mortgage origination income represents the gains recorded on the sale of mortgages originated by BancPlus. Debit card interchange represents income from the use of checkcards by our customers. Income from fiduciary activities includes retirement and management fee income from our wealth management group. ATM income is comprised of fees from our ATM network. Other

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income includes various types of income including gains on sale of other real estate, personalized check sales, and wire transfer fees.

Noninterest income was $19.1 million for the three months ended September 30, 2021, compared to $18.6 million for the same period of 2020, an increase of $441,000, or 2.4%, primarily due to increases in service charges on deposit accounts of $1.8 million, or 31.5%; debit card interchange of $481,000, or 25.2%; income from fiduciary activities of $436,000 or 27.6%; life insurance income of $598,000, or 105.7%; partially offset by decreases in other income of $1.8 million, or 60.8%, and mortgage origination income of $828,000, or 29.3%.

The following table presents the major components of noninterest income for three months ended September 30, 2021, compared to the three months ended September 30, 2020:

	Three Months Ended September 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Noninterest income:
Service charges on deposit accounts	$	7,484	$	5,690	$	1,794	31.5	%
Mortgage origination income	1,999		2,827		(828)		(29.3)	%
Debit card interchange	2,390		1,909		481		25.2	%
Income from fiduciary activities	2,015		1,579		436		27.6	%
ATM income	1,566		1,754		(188)		(10.7)	%
Brokerage and insurance fees and commissions	648		533		115		21.6	%
Life insurance income	1,164		566		598		105.7	%
Community Development Financial Institution (“CDFI”) grants	645		823		(178)		(21.6)	%
Other income	1,155		2,944		(1,789)		(60.8)	%
Total	$	19,066	$	18,625	$	441	2.4	%

Service charges on deposit accounts increased $1.8 million, or 31.5%, to $7.5 million for the three months ended September 30, 2021, compared to $5.7 million for the same period of 2020. The increase was the result of the impact on the prior year period of increased customer liquidity as a result of various economic stimulus programs and reduced customer spending as a result of quarantine restrictions related to the COVID-19 pandemic.

Debit card interchange increased $481,000, or 25.2%, to $2.4 million for the three months ended September 30, 2021, compared to $1.9 million for the same period of 2020. The increase was attributable to increased card spending and transaction levels for the current year period compared to the same period of 2020 which was negatively affected by quarantine restrictions related to the COVID-19 pandemic.

Income from fiduciary activities increased $436,000, or 27.6%, to $2.0 million for the three months ended September 30, 2021, compared to $1.6 million for the same period of 2020. The increase is primarily attributable to increases in assets under management as a result of higher equity markets in the current year.

Life insurance income increased $598,000, or 105.7%, to $1.2 million for the three months ended September 30, 2021, compared to $566,000 for the same period of 2020. The increase is primarily related to death benefits paid in the current year on policies held by the BancPlus.

Mortgage origination income decreased $828,000, or 29.3%, to $2.0 million for the three months ended September 30, 2021, compared to $2.8 million for the same period of 2020. The decrease was primarily the result of decreased mortgage origination activity in the three months ended September 30, 2021 as refinancing activity began to slow from increased levels seen over the previous 12 months.

Other income decreased $1.8 million, or 60.8%, to $1.2 million for the three months ended September 30, 2021, compared to $2.9 million for the same period of 2020. The decrease was primarily the result of the gain on the bargain purchase of $1.1 million recorded in the prior year period related to the merger with SCC.

Noninterest income was $58.1 million for the first nine months of 2021, compared to $45.4 million for the first nine months of 2020, an increase of $12.7 million, or 28.0%, primarily due to increases in service charges on deposit accounts of $2.6, or 15.3%;

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mortgage origination income of $752,000, or 12.6%; debit card interchange of $2.2 million, or 41.1%; income from fiduciary activities of $1.1 million, or 23.9%; ATM income of $835,000, or 21.0%; life insurance income of $4.3 million, or 284.1%; and CDFI grants of $1.6 million, or 200.2%; partially offset by a decrease in other income of $1.0 million, or 20.9%.

The following table presents the major components of noninterest income for the nine months ended September 30, 2021, compared to the nine months ended September 30, 2020:

	Nine Months Ended September 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Noninterest income:
Service charges on deposit accounts	$	19,226	$	16,674	$	2,552	15.3	%
Mortgage origination income	6,726		5,974		752		12.6	%
Debit card interchange	7,634		5,412		2,222		41.1	%
Income from fiduciary activities	5,681		4,585		1,096		23.9	%
ATM income	4,809		3,974		835		21.0	%
Brokerage and insurance fees and commissions	1,802		1,516		286		18.9	%
Life insurance income	5,858		1,525		4,333		284.1	%
CDFI grants	2,471		823		1,648		200.2	%
Other income	3,873		4,899		(1,026)		(20.9)	%
Total	$	58,080	$	45,382	$	12,698	28.0	%

Service charges on deposit accounts increased $2.6 million, or 15.3%, to $19.2 million for the nine months ended September 30, 2021, compared to $16.7 million for the same period of 2020. The increase was the result of the impact on the prior year period of increased customer liquidity as a result of various economic stimulus programs and reduced customer spending as a result of quarantine restrictions related to the COVID-19 pandemic.

Mortgage origination income increased $752,000, or 12.6%, to $6.7 million for the nine months ended September 30, 2021, compared to $6.0 million for the same period of 2020. The increase primarily related to increased mortgage origination activity in the first nine months of the current year as a result of the lower interest rate environment seen for much of 2021.

Debit card interchange increased $2.2 million, or 41.1%, to $7.6 million for the nine months ended September 30, 2021, compared to $5.4 million for the same period of 2020. The increase was attributable to increased card spending and transaction levels for the current year period compared to the same period of 2020 which was negatively affected by quarantine restrictions related to the COVID-19 pandemic as well as an additional three months of income in 2021 related to the merger with SCC.

Income from fiduciary activities increased $1.1 million, or 23.9%, to $5.7 million for the nine months ended September 30, 2021, compared to the $4.6 million for the same period of 2020. The increase is primarily attributable to increases in assets under management as a result of higher equity markets in the current year.

ATM income increased $835,000, or 21.0%, to $4.8 million for the nine months ended September 30, 2021, compared to $4.0 million for the same period of 2020. The increase is primarily related to increases in ATM usage in the current year period compared to same period of 2020 which was negatively affected by quarantine restrictions related to the COVID-19 pandemic as well as an additional three months of income in 2021 related to the merger with SCC.

Life insurance income increased $4.3 million, or 284.1%, to $5.9 million for the nine months ended September 30, 2021, compared to $1.5 million for the same period of 2020. The increase is primarily related to death benefits paid in the current year on policies held by BancPlus.

CDFI grant income increased $1.6 million, or 200.2%, to $2.5 million for the nine months ended September 30, 2021 from $823,000 for the same period of 2020. The current year period includes a $1.8 million grant received related to the CDFI Rapid Response Program, which was created in 2021 by the U.S. Department of the Treasury to provide capital for CDFI designated banks to respond to the economic challenges created by the COVID-19 pandemic.

Other income decreased $1.0 million, or 20.9%, to $3.9 million for the nine months ended September 30, 2021, compared to $4.9 million for the same period of 2020. The decrease was primarily the result of the gain on the bargain purchase of $1.1 million recorded in the prior year period related to the merger with SCC.

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Noninterest Expense

Noninterest expense includes: (i) salaries and employee benefits expenses; (ii) net occupancy expenses; (iii) furniture, equipment, and data processing expenses; (iv) marketing and promotional expenses; (v) other real estate expenses and losses; (vi) professional fees; and (vii) other expenses.

Salaries and employee benefits expenses includes compensation, employee benefits and tax expenses for BancPlus’ personnel. Net occupancy expenses include depreciation expense on BancPlus’ owned properties, lease expense on its leased properties and other occupancy-related expenses. Furniture and equipment expenses include depreciation and maintenance and other expenses related to its furniture, fixtures and equipment. Data processing expenses include costs related to maintenance and monitoring of its systems and expenses paid to its third-party data processing system providers. Marketing and promotional expenses include costs for advertising, promotions and sponsorships. Other real estate expenses and losses include taxes, insurance, maintenance and other expenses related to BancPlus’ foreclosed properties. Professional fees include accounting and auditing, consulting and legal fees. Other expenses include expenses associated with Federal Deposit Insurance Corporation (“FDIC”) assessments, Mississippi Department of Banking and Consumer Finance (“MDBCF”) assessments, communications, travel, meals, training, supplies and postage. Noninterest expenses generally increase as BancPlus grows its business. Noninterest expenses have increased commensurate with our growth over the past few years as BancPlus has grown organically and through the merger with SCC. Additionally, BancPlus has built out and modernized its operational infrastructure and implemented its plan to build an efficient, technology-driven banking operation with capacity for growth. BancPlus continues to focus efforts on supporting growth through sales efforts, product development, marketing and promotion, as well as investing in technology and its branch network, while also seeking to improve productivity and maintain appropriate cost structure and customer service levels.

For the three months ended September 30, 2021, noninterest expense totaled $42.8 million, an increase of $2.9 million, or 7.3%, from $39.9 million for the three months ended September 30, 2020, primarily due to increases in salaries and employee benefits expenses of $2.1 million, or 8.9%.

The following table presents the major components of noninterest expense for the three months ended September 30, 2021 compared to the three months ended September 30, 2020:

	Three Months Ended September 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Noninterest expense:
Salaries and employee benefits expenses	$	25,218	$	23,162	$	2,056	8.9	%
Net occupancy expenses	3,606		3,459		147		4.2	%
Furniture, equipment and data processing expenses	6,282		5,801		481		8.3	%
Marketing and promotional expenses	1,154		1,000		154		15.4	%
Other real estate expenses and losses	292		230		62		27.0	%
Professional fees	1,232		1,651		(419)		(25.4)	%
Other expenses	5,038		4,609		429		9.3	%
Total	$	42,822	$	39,912	$	2,910	7.3	%

Salaries and employee benefits expenses is the largest component of noninterest expense, representing 58.9% and 58.0% of total noninterest expense for the three months ended September 30, 2021 and 2020, respectively. During the three months ended September 30, 2021, salaries and employee benefits expense increased $2.1 million, or 8.9%, to $25.2 million, compared to $23.2 million for the three months ended September 30, 2020. The increase in salaries and employee benefits expense is primarily due to increased bonuses and normal annual salary increases for employees, as well as increased salary-related expenses in the third quarter of 2021 related to the Company’s recent core software conversion.

For the nine months ended September 30, 2021, noninterest expense totaled $121.4 million, an increase of $10.9 million, or 9.8%, from $110.5 million for the nine months ended September 30, 2020, primarily due to increases in salaries and employee benefits expenses of $7.0 million, or 10.7%; net occupancy expenses of $1.1 million, or 11.0%, furniture, equipment and data processing of $2.7 million, or 17.3%, and other expenses of $2.4 million, or 20.0%, partially offset by a decrease in professional fees of $2.2 million, or 46.7%.

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The following table presents the major components of noninterest expense for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020:

	Nine Months Ended September 30,
(Dollars in thousands)	2021		2020		$ Change		% Change
Noninterest expense:
Salaries and employee benefits expenses	$	72,365	$	65,349	$	7,016	10.7	%
Net occupancy expenses	10,779		9,709		1,070		11.0	%
Furniture, equipment and data processing expenses	18,322		15,621		2,701		17.3	%
Marketing and promotional expenses	2,485		2,787		(302)		(10.8)	%
Other real estate expenses and losses	744		506		238		47.0	%
Professional fees	2,514		4,718		(2,204)		(46.7)	%
Other expenses	14,188		11,823		2,365		20.0	%
Total	$	121,397	$	110,513	$	10,884	9.8	%

Salaries and employee benefits expenses is the largest component of noninterest expense, representing 59.6% and 59.1% of total noninterest expense for the nine months ended September 30, 2021 and 2020, respectively. During the nine months ended September 30, 2021, salaries and employee benefits expense increased $7.0 million, or 10.7%, to $72.4 million, compared to $65.3 million for the nine months ended September 30, 2020. The increase in salaries and employee benefits expenses is primarily due to the merger with SCC in addition to normal annual salary increases for employees.

Net occupancy expenses increased $1.1 million, or 11.0%, to $10.8 million for the nine months ended September 30, 2021, compared to $9.7 million for the nine months ended September 30, 2020. The increase was primarily attributable to increased maintenance expenses in the current year period related to the upkeep of branches across our footprint.

Furniture, equipment and data processing expenses for the nine months ended September 30, 2021 was $18.3 million, an increase of $2.7 million, or 17.3%, compared to $15.6 million for the nine months ended September 30, 2020. This increase was primarily attributable to increases in depreciation, data processing and software expenses resulting from the merger with SCC in addition to expenses related to BancPlus’ software conversion during the third quarter of 2021.

Professional fees decreased $2.2 million, or 46.7%, to $2.5 million for the nine months ended September 30, 2021, compared to $4.7 million for the nine months ended September 30, 2020, primarily due to expenses incurred in the same period of 2020 related to the merger with SCC.

Other expenses increased $2.4 million, or 20.0%, to $14.2 million for the nine months ended September 30, 2021, compared to $11.8 million for the nine months ended September 30, 2020, primarily due to an increase in FDIC and state assessment fees as a result of increased deposits as well as the merger with SCC.

Income Tax Expense

The provision for income taxes includes both federal and state taxes. Fluctuations in effective tax rates reflect the effect of the differences in the inclusion or deductibility of certain income and expenses for income tax purposes, the mix of BancPlus’ taxable and tax-free investments and loans, and its overall taxable income.

BancPlus recorded income tax expense of $4.0 million for the three months ended September 30, 2021, compared to $3.3 million for the same period of 2020, an increase of $678,000, or 20.3%. BancPlus’ effective tax rate for the three months ended September 30, 2021 was 22.0%, compared to 20.9% for the same period of 2020.

BancPlus recorded income tax expense of $10.6 million for the nine months ended September 30, 2021, compared to $7.6 million for the same period of 2020, an increase of $3.0 million, or 39.1%. BancPlus’ effective tax rate for the nine months ended September 30, 2021 was 18.9%, compared to 21.7% for the same period of 2020.

For both the three and nine month periods, the increase in income tax expense was the result of larger income before taxes in the current year period. The increase in the effective tax rate for the three months ended September 30, 2021 compared with the same period of 2020 was the result of the impact on the prior year period of permanent tax items. The decrease in effective tax rate for

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the year to date periods was the result of BancPlus taking advantage of tax credits offered by Mississippi in the current year, non-taxable life insurance proceeds recorded in 2021, and apportionment of state taxable income to Louisiana which exempts banks that pay a state tax on their shares of stock from their corporate income tax. BancPlus’ Louisiana locations were acquired in the merger with SCC.

Financial Condition

The following discussion compares BancPlus’ financial condition as of September 30, 2021 to December 31, 2020.

Assets

Total assets increased $402.4 million, or 8.5%, to $5.113 billion at September 30, 2021 from total assets of $4.711 billion at December 31, 2020. Total cash and cash equivalents increased $57.5 million, or 9.0%, to $695.1 million at September 30, 2021, compared to $637.5 million at December 31, 2020, primarily due to increases in interest bearing deposits with banks. Total loans increased $147.4 million, or 4.4%, to $3.526 billion at September 30, 2021, compared to $3.379 billion at December 31, 2020 as a result of organic loan growth. Investment securities increased $214.2 million, or 52.9%, from $405.1 million at December 31, 2020 to $619.3 million at September 30, 2021 as a result of increased purchases of available for sale securities.

Investment Securities Portfolio

BancPlus’ investment securities portfolio, which consists primarily of U.S. government agency obligations, mortgage-backed securities, municipal securities and corporate investments, is used as a source of liquidity and serves as collateral for certain types of deposits. BancPlus manages its investment securities portfolio according to a written investment policy. Balances in BancPlus’ investment securities portfolio change over time based on its funding needs and interest rate risk management objectives. BancPlus’ liquidity levels take into account anticipated future cash flows and all available sources of credit and are maintained at levels management believes ensure flexibility in meeting its anticipated funding needs.

As of September 30, 2021, 12.7% of BancPlus’ investment securities portfolio was classified as held to maturity and 87.3% was classified as available for sale. As of December 31, 2020, 23.1% of BancPlus’ investment securities portfolio was classified as held to maturity and 76.9% was classified as available for sale. Securities available for sale increased $229.5 million, or 73.7%, from $311.4 million at December 31, 2020 to $540.9 million at September 30, 2021. Early in the period, BancPlus took advantage of the steeper yield curve to invest excess liquidity. BancPlus used a disciplined approach to build a ladder of non-callable state tax-exempt agency bonds. As market conditions allow, BancPlus will continue this strategy to enhance net interest margin and provide predictable cash flows for future loan demand.

At September 30, 2021, U.S. government agency obligations represented 48.4%, mortgage-backed securities represented 22.1%, municipal securities represented 20.2% and corporate investments represented 7.1% of the investment securities portfolio. At December 31, 2020, mortgage-backed securities represented 50.5%, municipal securities represented 34.7%, corporate investments represented 8.2% and U.S. government agency obligations represented 3.1% of the investment securities portfolio. Other than the U.S. government and its agencies, BancPlus’ securities portfolio did not contain securities of any single issuer, including any securities issued by a state or political subdivision, that were payable from and secured by the same source of revenue or taxing authority where the aggregate carrying value of such securities exceeded 10% of shareholders’ equity.

The following table presents the carrying value of BancPlus’ investment securities portfolio as of the dates indicated:

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	September 30, 2021				December 31, 2020
(Dollars in thousands)	Carrying Value		% of Total		Carrying Value		% of Total
Held to Maturity:
(At amortized cost)
Issued by states and political subdivisions	$	78,423	12.66	%	$	93,766	23.14	%
Total held-to-maturity	78,423		12.66	%	93,766		23.14	%
Available for Sale:
(At fair value)
U.S. Government agency obligations	299,841		48.42	%	12,434		3.07	%
Issued by states and political subdivisions	46,613		7.53	%	46,801		11.55	%
Mortgage-backed securities:
Residential	121,846		19.67	%	187,212		46.21	%
Commercial	14,894		2.40	%	17,331		4.28	%
Asset-backed securities	13,539		2.19	%	14,447		3.57	%
Corporate investments	44,150		7.13	%	33,148		8.18	%
Total available for sale	540,883		87.34	%	311,373		76.86	%
Total securities	$	619,306	100.00	%	$	405,139	100.00	%

The following tables present the carrying value of BancPlus’ investment securities portfolio by their stated maturities and the weighted average yields for each maturity range as of the dates indicated. Weighted-average yields have been computed on a fully tax equivalent basis using a tax rate of 21%.

	Maturity as of September 30, 2021
	Due in One Year or Less				More Than One Year to Five Years				More Than Five Years to Ten Years				Due After Ten Years
(Dollars in thousands)	Amount		Weighted Average Yield		Amount		Weighted Average Yield		Amount		Weighted Average Yield		Amount		Weighted Average Yield
Held to maturity:
Issued by states and political subdivisions	$	12,437	3.19	%	$	46,344	2.81	%	$	16,887	2.54	%	$	2,755	4.17	%
Total held to maturity	12,437		3.19	%	46,344		2.81	%	16,887		2.54	%	2,755		4.17	%
Available for sale:
U.S. Government agency obligations	5,037		2.60	%	163,773		0.45	%	126,630		1.19	%	4,402		1.75	%
Issued by states and political subdivisions	2,346		4.64	%	14,770		2.64	%	22,141		3.13	%	7,356		3.17	%
Mortgage-backed securities:
Residential	—		—	%	—		—	%	4,650		1.85	%	117,196		2.41	%
Commercial	—		—	%	—		—	%	13,659		1.54	%	1,234		2.48	%
Asset-backed securities	—		—	%	—		—	%	—		—	%	13,539		1.88	%
Corporate investments	4,019		2.13	%	498		2.75	%	38,571		4.14	%	1,062		4.50	%
Total available for sale	11,402		2.85	%	179,041		0.64	%	205,651		1.99	%	144,789		2.39	%
Total securities	$	23,839	3.03	%	$	225,385	1.08	%	$	222,538	2.03	%	$	147,544	2.43	%

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	Maturity as of December 31, 2020
	Due in One Year or Less				More Than One Year to Five Years				More Than Five Years to Ten Years				Due After Ten Years
(Dollars in thousands)	Amount		Weighted Average Yield		Amount		Weighted Average Yield		Amount		Weighted Average Yield		Amount		Weighted Average Yield
Held to maturity:
Issued by states and political subdivisions	$	15,891	3.02	%	$	50,738	4.05	%	$	24,247	3.67	%	$	2,890	3.85	%
Total held to maturity	15,891		3.02	%	50,738		4.05	%	24,247		3.67	%	2,890		3.85	%
Available for sale:
U.S. Government agency obligations	—		—	%	5,128		2.60	%	2,508		3.19	%	4,798		1.78	%
Issued by states and political subdivisions	3,803		3.08	%	12,504		2.99	%	20,538		3.18	%	9,956		3.19	%
Mortgage-backed securities:
Residential	—		—	%	—		—	%	10,991		0.93	%	176,220		2.35	%
Commercial	305		3.25	%	—		—	%	14,071		1.54	%	2,955		2.53	%
Asset-backed securities	—		—	%	—		—	%	—		—	%	14,447		3.94	%
Corporate investments	—		—	%	4,060		2.22	%	28,084		4.48	%	1,005		4.50	%
Total available for sale	4,108		3.09	%	21,692		2.75	%	76,192		3.03	%	209,381		2.50	%
Total securities	$	19,999	3.03	%	$	72,430	3.66	%	$	100,439	3.19	%	$	212,271	2.52	%

The objective of BancPlus’ investment policy is to invest funds to provide sufficient liquidity, optimize the total return of the portfolio, mitigate interest rate risk, and meet pledging requirements. In doing so, BancPlus balances the market and credit risks against the potential investment return, makes most investments compatible with the pledge requirements of any deposits of public funds, and maintains compliance with regulatory investment requirements. BancPlus’ investment policy allows portfolio holdings to include short-term securities purchased to provide needed liquidity and longer term securities purchased to generate stable income over periods of interest rate fluctuations.

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Loan Portfolio

The following tables detail composition and percentage composition of BancPlus’ loan portfolio, by category, as of the dates indicated:

	As of September 30, 2021				As of December 31, 2020
(Dollars in thousands)	Amount		Percent		Amount		Percent
Secured by real estate:
Residential properties	$	773,928	21.95	%	$	738,340	21.85	%
Construction and land development	465,564		13.20	%	403,496		11.94	%
Farmland	212,645		6.03	%	217,104		6.43	%
Other commercial	1,339,214		37.98	%	1,224,633		36.25	%
Total real estate	2,791,351		79.16	%	2,583,573		76.47	%
Commercial and industrial	534,160		15.15	%	635,714		18.82	%
Agricultural production and other loans to farmers	101,973		2.89	%	85,469		2.53	%
Consumer and other	98,602		2.80	%	73,976		2.19	%
Total loans, gross	3,526,086		100.00	%	3,378,732		100.00	%
Allowance for loan losses	(44,001)				(36,000)
Total loans, net	$	3,482,085			$	3,342,732

As a general practice, BancPlus originates substantially all of its loans, but BancPlus occasionally participates in syndications and other loan participations. At September 30, 2021, BancPlus’ loan portfolio included $290.8 million of loan participations purchased, or 8.25% of total loans, which includes $146.8 million of shared national credits. At December 31, 2020, BancPlus’ loan portfolio included $245.7 million of loan participations purchased, or 7.27% of total loans, which includes $93.8 million of shared national credits.

The following tables detail the contractual maturities and sensitivity to interest rate changes for BancPlus’ loan portfolio as of the dates indicated:

	As of September 30, 2021
(Dollars in thousands)	Due in One Year or Less		More Than One Year to Five		More Than Five Years to Fifteen		After Fifteen Years		Total
Secured by real estate:
Residential properties	$	82,492	$	329,147	$	332,387	$	29,901	$	773,927
Construction and land development	142,510		260,274		53,777		9,004		465,565
Farmland	46,569		99,747		65,107		1,222		212,645
Other commercial	116,870		759,180		414,977		48,187		1,339,214
Total real estate	388,441		1,448,348		866,248		88,314		2,791,351
Commercial and industrial	69,926		345,296		118,887		51		534,160
Agricultural production and other loans to farmers	57,476		43,233		1,264		—		101,973
Consumer and other loans	29,347		64,777		4,463		15		98,602
Total loans	$	545,190	$	1,901,654	$	990,862	$	88,380	$	3,526,086

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	As of December 31, 2020
(Dollars in thousands)	Due in One Year or Less		More Than One Year to Five		More Than Five Years to Fifteen		After Fifteen Years		Total
Secured by real estate:
Residential properties	$	115,367	$	388,731	$	229,269	$	4,973	$	738,340
Construction and land development	160,382		187,403		49,445		6,266		403,496
Farmland	44,618		112,826		56,307		3,353		217,104
Other commercial	150,683		706,001		320,450		47,499		1,224,633
Total real estate	471,050		1,394,961		655,471		62,091		2,583,573
Commercial and industrial	102,129		473,283		60,302		—		635,714
Agricultural production and other loans to farmers	40,750		42,575		2,144		—		85,469
Consumer and other loans	18,814		53,319		1,828		15		73,976
Total loans	$	632,743	$	1,964,138	$	719,745	$	62,106	$	3,378,732

	As of September 30, 2021
(Dollars in thousands)	Fixed Interest Rates		Floating or Adjustable Rates		Total
Secured by real estate:
Residential properties	$	640,997	$	132,930	$	773,927
Construction and land development	232,987		232,578		465,565
Farmland	160,339		52,306		212,645
Other commercial	1,097,871		241,343		1,339,214
Total real estate	2,132,194		659,157		2,791,351
Commercial and industrial	289,928		244,232		534,160
Agricultural production and other loans to farmers	62,997		38,976		101,973
Consumer and other loans	69,086		29,516		98,602
Total loans	$	2,554,205	$	971,881	$	3,526,086

	As of December 31, 2020
(Dollars in thousands)	Fixed Interest Rates		Floating or Adjustable Rates		Total
Secured by real estate:
Residential properties	$	594,353	$	143,987	$	738,340
Construction and land development	213,944		189,552		403,496
Farmland	162,505		54,599		217,104
Other commercial	1,016,580		208,053		1,224,633
Total real estate	1,987,382		596,191		2,583,573
Commercial and industrial	425,874		209,840		635,714
Agricultural production and other loans to farmers	51,766		33,703		85,469
Consumer and other loans	52,692		21,284		73,976
Total loans	$	2,517,714	$	861,018	$	3,378,732

As of September 30, 2021, the Company held 1,948 loans for customers under the PPP, totaling approximately $101.0 million, a decrease of $104.2 million, or 50.8%, from $205.2 million as of December 31, 2020. The decrease is the result of PPP loans

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being forgiven and paid off by the SBA or being paid off by the customer, partially offset by originations of new PPP loans in 2021 while the program was still active.

Additionally, BancPlus enters into various other transactions to meet the financing needs of its customers including commitments to extend credit and letters of credit. Commitments to extend credit beyond current funding are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Such commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. Letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. At September 30, 2021, BancPlus had total off-balance sheet commitments of $1.230 billion.

Asset Quality

Federal regulations and BancPlus’ internal policies require that BancPlus utilize an asset classification system as a means of managing and reporting problem and potential problem assets. BancPlus has incorporated an internal asset classification system, substantially consistent with federal banking regulations, as part of its credit monitoring system. Federal banking regulations set forth a classification scheme for problem and potential problem assets as “substandard,” “doubtful” or “loss” assets. An asset is considered substandard if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard assets include those characterized by the distinct possibility that the insured institution will sustain some loss if the deficiencies are not corrected. Assets classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses present make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. Assets classified as loss are those considered uncollectible and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. Assets which do not currently expose BancPlus to sufficient risk to warrant classification in one of the categories mentioned above but possess weakness are required to be designated “watch” or “special mention.” Loans modified under Section 4013 of the CARES Act and related interagency guidance are excluded from being reported as troubled debt restructuring (“TDR”) loans.

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The tables below set forth information on BancPlus’ asset classification as of the dates indicated. BancPlus had no assets classified as loss.

	As of September 30, 2021
(Dollars in thousands)	Risk Grades 1-7		Substandard		Doubtful		Total
Secured by real estate:
Residential properties	$	759,188	$	14,740	$	—	$	773,928
Construction and land development	464,819		745		—		465,564
Farmland	199,608		13,037		—		212,645
Other commercial	1,331,516		7,621		77		1,339,214
Total real estate	2,755,131		36,143		77		2,791,351
Commercial and industrial	510,359		23,756		45		534,160
Agricultural production and other loans to farmers	101,620		353		—		101,973
Consumer and other	98,302		300		—		98,602
Total	$	3,465,412	$	60,552	$	122	$	3,526,086

	As of December 31, 2020
(Dollars in thousands)	Risk Grades 1-7		Substandard		Doubtful		Total
Secured by real estate:
Residential properties	$	721,024	$	17,316	$	—	$	738,340
Construction and land development	401,347		2,149		—		403,496
Farmland	205,211		11,893		—		217,104
Other commercial	1,209,365		15,041		227		1,224,633
Total real estate	2,536,947		46,399		227		2,583,573
Commercial and industrial	619,137		16,526		51		635,714
Agricultural production and other loans to farmers	85,288		181		—		85,469
Consumer and other	73,560		416		—		73,976
Total	$	3,314,932	$	63,522	$	278	$	3,378,732

Nonperforming Assets

Nonperforming loans include loans accounted for on a nonaccrual basis and TDR loans that are accruing. Nonperforming assets consist of nonperforming loans plus foreclosed assets (i.e. real estate acquired through foreclosure).

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The following table summarizes BancPlus’ nonperforming assets, by category, as of the dates indicated:

(Dollars in thousands)	September 30, 2021			December 31, 2020
Nonaccrual loans:
Real estate loans:
Residential properties	$	3,318		$	3,869
Construction and land development	58			1,863
Farmland	1,893			158
Other commercial	2,324			7,947
Total real estate	7,593			13,837
Commercial and industrial	106			12
Agricultural production and other loans to farmers	135			85
Consumer and other	210			177
Total nonaccrual loans	8,044			14,111
Troubled debt restructuring loans – accruing:
Real estate loans:
Residential properties	1,898			1,916
Construction and land development	1,558			—
Farmland	—			—
Other commercial	—			—
Total real estate	3,456			1,916
Commercial and industrial	388			—
Agricultural production and other loans to farmers	—			—
Consumer and other	—			—
Total troubled debt restructuring loans – accruing	3,844			1,916
Total nonperforming loans	11,888			16,027
Plus: foreclosed assets	6,989			6,754
Total nonperforming assets	$	18,877		$	22,781
Nonaccrual loans to total loans	0.23		%	0.42		%
Nonperforming loans to total loans	0.34		%	0.47		%
Nonperforming assets to total assets	0.37		%	0.48		%
Allowance for loan losses to nonaccrual loans	547.00		%	255.12		%
90+ days past due and accruing	$	2,299		$	6,303
Total troubled debt restructuring loans	$	4,018		$	8,537

Total nonperforming assets decreased by $3.9 million, or 17.1%, from $22.8 million at December 31, 2020 to $18.9 million at September 30, 2021, primarily due to a decrease in nonaccrual loans as a result of payments and foreclosures during the current year on loans that were in nonaccrual status at December 31, 2020.

The balance of nonperforming assets can fluctuate due to changes in economic conditions. BancPlus has established a policy to discontinue accruing interest on a loan (that is, place the loan on nonaccrual status) after it has become 90 days delinquent as to payment of principal or interest, unless the loan is considered to be well-collateralized and is actively in the process of collection. When a loan is placed on nonaccrual status, current year interest previously accrued but uncollected on such loans is reversed and charged against current income, and prior year interest, if any, is charged off against the allowance for loan losses. Generally, payments received on nonaccrual loans are applied directly to principal.

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Allowance for Loan Losses

The allowance for loan losses is a reserve established through charges to earnings in the form of a provision for loan losses. BancPlus maintains an allowance for loan losses at a level management considers adequate to provide for known and probable incurred losses in the portfolio. The level of the allowance is based on management’s evaluation of estimated losses in the portfolio, after consideration of risk characteristics of the loans and prevailing economic conditions. Loan charge-offs (i.e. loans judged to be uncollectible) are charged against the reserve and any subsequent recovery is credited to the reserve. BancPlus’ officers analyze risk in the loan portfolio on an ongoing basis. A risk system, consisting of multiple grading categories for each portfolio class, is utilized as an analytical tool to assess risk and appropriate reserves. In addition to the risk system, management further evaluates risk characteristics of the loan portfolio under current and anticipated economic conditions and considers such factors as the financial condition of the borrower, past and expected loss experience, and other factors which management feels deserve recognition in establishing an appropriate reserve. These estimates are reviewed at least quarterly, and, as adjustments become necessary, they are recognized in the periods in which they become known. During the third quarter of 2021, the U.S. economy continued to experience volatility and there remains uncertainty surrounding future economic conditions as a result of the COVID-19 pandemic and development of the outbreak, including variants, such as the delta variant, and the severity of such variants, and the availability, effectiveness and acceptance of vaccines, all of which are also highly uncertain. The government’s response to these conditions includes certain provisions, such as automatic forbearance and forgiveness for certain federally backed loans that could affect these estimates. Although management strives to maintain an allowance it deems adequate, future economic changes, deterioration of borrowers’ creditworthiness, and the impact of examinations by regulatory agencies all could cause changes to BancPlus’ allowance for loan losses.

The allowance for loan losses was $44.0 million and $36.0 million, and the allowance for loan losses as a percentage of loans was 1.24% and 1.06%, at September 30, 2021 and December 31, 2020, respectively. Net charge-offs (recoveries) totaled $(606,000) and $2.4 million for the nine months ended September 30, 2021 and 2020, respectively. The $3.0 million variance is primarily the result of current year recoveries on consumer and other commercial categories as well as high charge offs in 2020 as a result of the COVID-19 pandemic.

The allowance for loan losses increased by $8.0 million, or 22.2%, to $44.0 million at September 30, 2021, from $36.0 million at December 31, 2020, primarily due to the increase in provision for loan losses in the current period as a result of the continuing impact of the COVID-19 pandemic, including the impact of the CARES Act measures to support individuals and businesses in maintaining solvency through monetary relief, including in the form of financing, loan forgiveness and automatic forbearance.

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The following is a summary of the activity in the allowance for loan loss reserve as of and for the year-to-date periods indicated:

(Dollars in thousands)	September 30, 2021			September 30, 2020
Balance, beginning of period	$	36,000		$	21,500
Charge-offs:
Residential properties	298			268
Construction and land development	240			3
Farmland	157			—
Other commercial	581			2,179
Total real estate	1,276			2,450
Commercial and industrial	317			494
Agricultural production and other loans to farmers	111			2,270
Consumer and other	2,832			298
Total charge-offs	4,536			5,512
Recoveries:
Residential properties	340			237
Construction and land development	143			56
Farmland	292			—
Other commercial	1,842			94
Total real estate	2,617			387
Commercial and industrial	479			148
Agricultural production and other loans to farmers	3			2,365
Consumer and other	2,043			254
Total recoveries	5,142			3,154
Net charge-offs (recoveries)	(606)			2,358
Provision for loan losses	7,395			7,706
Balance, end of period	$	44,001		$	26,848
Total loans, end of period	$	3,539,990		$	3,447,458
Average loans	3,469,520			2,912,471
Net charge-offs (annualized) to average loans	(0.02)		%	0.11		%
Allowance for loan losses to total loans	1.24		%	0.78		%

The table below reflects net charge-offs to average loans outstanding, by category, during the periods presented.

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	Nine Months Ended September 30,
	2021						2020
(Dollars in thousands)	Net Charge-offs		Average Loans		Net Charge-offs to Average Loans (Annualized)		Net Charge-offs		Average Loans		Net Charge-offs to Average Loans (Annualized)
Residential properties	$	(42)	$	750,238	(0.01)	%	$	31	$	667,745	0.01	%
Construction and land development	97		458,968		0.03	%	(53)		302,444		(0.02)	%
Farmland	(135)		206,878		(0.09)	%	—		199,363		—	%
Other commercial	(1,261)		1,274,874		(0.13)	%	2,085		1,003,236		0.28	%
Commercial and industrial	(162)		589,070		(0.04)	%	346		561,457		0.08	%
Agricultural production and other loans to farmers	108		89,773		0.16	%	(95)		92,571		(0.14)	%
Consumer and other	789		83,432		1.26	%	44		69,307		0.08	%
Loans held for sale	—		16,287		—	%	—		16,348		—	%
Total	$	(606)	$	3,469,520	(0.02)	%	$	2,358	$	2,912,471	0.11	%

The following tables present a summary of the allocation of the allowance for loan losses by loan portfolio category, and the percentage of loans in each category, for the periods indicated:

	September 30, 2021				December 31, 2020
(Dollars in thousands)	Amount		Percent		Amount		Percent
Residential properties	$	10,523	23.9	%	$	7,900	21.9	%
Construction and land development	5,915		13.4	%	4,618		12.8	%
Farmland	2,330		5.3	%	1,412		3.9	%
Other commercial	16,698		37.9	%	14,133		39.3	%
Total real estate	35,466		80.6	%	28,063		78.0	%
Commercial and industrial	6,066		13.8	%	6,337		17.6	%
Agricultural production and other loans to farmers	1,170		2.7	%	773		2.1	%
Consumer and other	1,299		3.0	%	827		2.3	%
Total allowance for loan losses	$	44,001	100.0	%	$	36,000	100.0	%

Goodwill and Other Intangible Assets

Goodwill was $2.6 million at both September 30, 2021 and December 31, 2020. Goodwill represents the excess of the consideration paid over the fair value of the net assets acquired by the Company in prior acquisitions. Goodwill is not amortized but is subject to, at a minimum, an annual test for impairment. Other intangible assets consist of acquired customer relationships from a 2014 acquisition and core deposit intangibles from the merger with SCC. Total other intangible assets at September 30, 2021 and December 31, 2020 were $5.3 million and $5.8 million, respectively. Other intangible assets are amortized over their estimated useful life.

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Deposits

The following table details composition and percentage composition of BancPlus’ deposit portfolio, by category, for the year to date periods indicated:

	September 30, 2021						December 31, 2020
(Dollars in thousands)	Average Balance		Average Rate		Percent		Average Balance		Average Rate		Percent
Non-interest bearing	$	1,306,105	0.00	%	29.68	%	$	1,009,427	0.00	%	27.69	%
Interest bearing:
Transaction accounts	1,452,965		0.21	%	33.02	%	1,191,857		0.49	%	32.69	%
Money market and other savings accounts	982,220		0.09	%	22.32	%	806,652		0.29	%	22.13	%
Certificates of deposit	659,361		0.59	%	14.98	%	637,781		0.93	%	17.49	%
Total deposits	$	4,400,651	0.18	%	100.00	%	$	3,645,717	0.39	%	100.00	%

BancPlus relies on increasing its deposit base to fund loans and other asset growth. BancPlus competes for local deposits by offering a variety of products at competitive rates. The increase in total average deposits of $754.9 million, or 20.7%, to $4.401 billion at September 30, 2021 from $3.646 billion as of December 31, 2020 is primarily the result of recipients of PPP loans placing funds in deposit accounts held at the Bank. At September 30, 2021 and December 31, 2020, BancPlus held non-time deposits in excess of FDIC insurance limits estimated at $810.1 million and $889.3 million, respectively.

The following table shows the maturity of certificates of deposit as of September 30, 2021:

(Dollars in thousands)	$250,000 or Greater		Less than $250,000		Total		Uninsured Portion
3 months or less	$	39,438	$	105,705	$	145,143	$	15,938
Over 3 months through 6 months	26,404		87,066		113,470		12,404
Over 6 months through 12 months	54,549		132,074		186,623		30,049
Over 12 months	55,447		136,331		191,778		27,697
Total certificates of deposit	$	175,838	$	461,176	$	637,014	$	86,088

Borrowed Funds

Short-term Borrowings. In addition to deposits, BancPlus uses short-term borrowings, which consist of federal funds purchased and securities sold under agreements to repurchase, to meet the daily liquidity needs of its customers and fund its loan growth. Federal funds purchased represent primarily overnight borrowings through relationships with correspondent banks. Securities sold under agreements to repurchase are considered overnight borrowings and are secured by U.S. Government agency securities. At September 30, 2021 and December 31, 2020, we had no short-term borrowings.

FHLB Advances and Other Borrowings. BankPlus is a member of the FHLB, and as a result, is eligible for advances from the FHLB pursuant to the terms of various borrowing agreements, which assist BancPlus in the funding of its loan and investment portfolios. BancPlus’ FHLB advances are collateralized by a blanket lien on first mortgage and other qualifying loans. At both September 30, 2021 and December 31, 2020, BancPlus had $20.5 million in FHLB borrowings, at a weighted average interest rate of 1.50%.

In October 2016, BancPlus entered into a five-year loan agreement with a correspondent bank under which BancPlus borrowed $35.0 million in connection with the redemption of BancPlus preferred stock. BancPlus pledged 100% of its shares of BankPlus stock as collateral for the loan. The loan required quarterly principal reductions of $875,000 and quarterly interest payments at a fixed 3.75% annual rate. The balance outstanding on this loan was $10.5 million and $13.1 million at September 30, 2021 and December 31, 2020, respectively. The Company repaid this loan at its maturity in October 2021.

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Required principal payments on FHLB advances and other borrowings were as follows:

(Dollars in thousands)	September 30, 2021		December 31, 2020
2021	$	10,525	$	13,171
2022	417		395
2023	25		110
2024	13		—
2025	13		—
Thereafter	20,033		20,095
Total	$	31,026	$	33,771

Subordinated Debentures and Trust Preferred Securities. On June 4, 2020, the Company entered into a Subordinated Note Purchase Agreement with certain qualified institutional buyers and institutional accredited investors pursuant to which the Company issued and sold $60.0 million in aggregate principal amount of its 6.000% Fixed-to-Floating Rate Subordinated Notes due June 15, 2030 (the “Notes”). The Company incurred issuance costs of $1.4 million in conjunction with the issuance of the Notes. These issuance costs are netted with the balance of the Notes on the Company’s Condensed Consolidated Balance Sheets and will be amortized over the life of the Notes. The Notes initially bear interest at a rate of 6.000% per annum from and including June 4, 2020, to but excluding June 15, 2025 or early redemption date, with interest during this period payable semiannually in arrears. From and including June 15, 2025, to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an annual floating rate equal to Three-Month Term Secured Overnight Financing Rate plus 586 basis points, with interest during this period payable quarterly in arrears. The Company used the proceeds of the private placement for general corporate purposes, including improving the Company’s liquidity and capital position.

The Notes are not redeemable by the Company, in whole or in part, prior to the fifth anniversary of the original date of issue, except that the Notes may be redeemed at any time in whole but not in part in the event of a Tier 2 Capital Event, a Tax Event, or an Investment Company Event, each as defined and described in the Notes. On or after the fifth anniversary of the original date of issue, the Notes shall be redeemable on any interest payment date at the option of the Company, in whole or in part in integral multiples of $1,000, at an amount equal to 100% of the outstanding principal amount redeemed plus accrued but unpaid interest thereon. Any partial redemption will be made on a pro rata basis as to the holders of the Notes. Any redemption of the Notes is subject to any applicable regulatory requirements and approvals.

BancPlus also owns the outstanding common stock of business trusts that have issued preferred capital securities to third parties. The preferred capital securities have qualified as Tier 1 capital, subject to regulatory rules and limits. These trusts used the proceeds from the issuance of the common stock and preferred capital securities to purchase subordinated debentures that BancPlus issued. The subordinated debentures are these trusts’ only assets, and quarterly interest payments on these subordinated debentures are the sole source of cash for these trusts to pay quarterly distributions on the common stock and preferred capital securities. BancPlus has fully and unconditionally guaranteed the trusts’ obligations on preferred capital securities.

The following table is a summary of debentures payable to statutory trusts:

(Dollars in thousands)	Year of Maturity	Interest Rate	September 30, 2021		December 31, 2020
First Bancshares of Baton Rouge Statutory Trust I	2034	3 month LIBOR, plus 2.50%	$	4,124	$	4,124
State Capital Statutory Trust IV	2035	3 month LIBOR, plus 1.99%	5,155		5,155
BancPlus Statutory Trust II	2036	3 month LIBOR, plus 1.50%	20,619		20,619
BancPlus Statutory Trust III	2037	3 month LIBOR, plus 1.35%	20,619		20,619
State Capital Master Trust	2037	3 month LIBOR, plus 1.46%	6,186		6,186
			$	56,703	$	56,703

The subordinated debentures payable to statutory trusts vary from the amount carried on the Condensed Consolidated Balance Sheets at September 30, 2021 due to the remaining purchase discount of $4.0 million, which was established upon the merger with SCC and is being amortized over the remaining life of the debentures. We are currently monitoring the actions of LIBOR’s regulator and the implementation of alternative reference rates in advance of the expected discontinuation of LIBOR to determine any potential impact on the subordinated debentures.

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BancPlus believes that it will be able to meet its principal and interest payment obligations as they come due through maintenance of adequate cash levels or subsequent borrowings. BancPlus expects to maintain adequate cash levels through profitability, loan and securities repayment and maturity activity and continued deposit gathering activities. BancPlus has in place various borrowing mechanisms for both short-term and long-term liquidity needs.

Shareholders’ Equity

Shareholders’ equity is influenced primarily by earnings, quarterly dividend payments, changes in common stock outstanding, and changes in accumulated other comprehensive income (loss) caused primarily by fluctuations in unrealized holding gains or losses, net of taxes, on available for sale investment securities.

Shareholders’ equity increased $30.6 million, or 8.6%, to $385.9 million at September 30, 2021 from $355.3 million at December 31, 2020, primarily due to net income of $45.5 million partially offset by dividends paid of $11.5 million, and purchase of Company stock of $2.4 million for the year to date period. The purchase of Company stock was the result of members of the State Bank Employee Stock Ownership Plan (“State Bank ESOP”), who took a distribution of Company stock from the State Bank ESOP, exercising a put option available to them following their distribution. The put option is available for shares of Company stock distributed by the State Bank ESOP, so long as the Company is not publicly traded, for a period of 60 days following the distribution request.

Liquidity and Capital Resources

Bank Liquidity Management

Liquidity is BancPlus’ capacity to meet its cash and collateral obligations at a reasonable cost, having cash when BancPlus needs it and having the appropriate amount of cash and other assets that are quickly convertible into cash without incurring significant loss. BancPlus is expected to maintain adequate liquidity at BankPlus to meet the cash flow requirements of its customers who may be either depositors wishing to withdraw funds or borrowers needing assurance that sufficient funds will be available to meet their credit needs. Maintaining an adequate level of liquidity depends on BancPlus’ ability to efficiently meet both expected and unexpected cash flows and collateral needs without adversely affecting either BancPlus’ daily operations or its financial condition. BancPlus’ Asset Liability Management Committee (“ALCO”), which is comprised of members of senior management, is responsible for managing commitments to meet the needs of customers while achieving its financial objectives. ALCO meets regularly to review balance sheet composition, funding capacities, and current and forecasted loan demand, and BancPlus’ Treasury Management department continuously monitors its liquidity position to ensure that assets and liabilities are managed in a manner that will meet all of its short-term and long-term cash requirements.

BancPlus manages its liquidity by maintaining adequate levels of cash and other assets from on and off-balance sheet arrangements. Specifically, on-balance sheet liquidity consists of cash and due from banks and unpledged investment securities, which BancPlus considers its primary liquidity. Furthermore, a significant portion of these unencumbered liquid assets are comprised of U.S. government agency obligations, mortgage backed securities and other agency securities, which the regulatory bodies consider the most marketable and liquid, especially in a stress scenario. In regard to off-balance sheet capacity, BancPlus maintains available borrowing capacity under secured borrowing lines with the FHLB and the Federal Reserve Bank of St. Louis, as well as unsecured lines of credit for the purpose of overnight funds with various correspondent banks, which BancPlus considers its secondary liquidity. BancPlus also monitors its liquidity requirements in light of interest rate trends, changes in the economy and the scheduled maturity and interest rate sensitivity of the investment and loan portfolios, FHLB borrowings and deposits. As part of its liquidity management strategy, BancPlus is also focused on minimizing its costs of liquidity and attempting to decrease these costs by growing its noninterest-bearing and other low-cost deposits and replacing higher cost borrowed funds.

The following tables provide a summary of BancPlus’ primary and secondary liquidity levels.

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(Dollars in thousands) Primary Liquidity – On-Balance Sheet	September 30, 2021			December 31, 2020
Cash and cash equivalents	$	695,069		$	637,545
Total securities	619,306			405,139
Less: pledged securities	(489,257)			(317,461)
Total primary liquidity	$	825,118		$	725,223
Ratio of primary liquidity to total deposits	18.2		%	17.5		%

Secondary Liquidity – Off-Balance Sheet Borrowing Capacity	September 30, 2021			December 31, 2020
Net secured borrowing capacity with the FHLB	$	1,499,630		$	1,408,005
Net secured borrowing capacity with the Federal Reserve Bank	210,239			211,407
Unsecured borrowing capacity with correspondent lenders	203,000			228,000
Total secondary liquidity	$	1,912,869		$	1,847,412
Ratio of primary and secondary liquidity to total deposits	60.4		%	61.9		%

During the nine months ended September 30, 2021, BancPlus’ primary liquidity increased by $99.9 million to $825.1 million, compared to $725.2 million at December 31, 2020, primarily due an increase in securities partially offset by an increase in our pledged securities. Secondary liquidity increased by $65.5 million to $1.913 billion as of September 30, 2021 from $1.847 billion as of December 31, 2020. This increase was primarily due to an increase in BancPlus’ FHLB borrowing capacity.

In addition to its primary liquidity, BancPlus generates liquidity from cash flows from its loan and securities portfolios and from its large base of core customer deposits, defined as total deposits less brokered deposits and time deposits greater than $250,000. Core deposits totaled $4.363 billion and $3.973 billion and represented 96.3% and 95.7% of total deposits as of September 30, 2021 and December 31, 2020, respectively. These core deposits are normally less volatile, often with customer relationships tied to other products, which promote long-standing relationships and stable funding sources. Although BancPlus’ policy allows the use of brokered deposits, BankPlus did not utilize this funding source during the 2021 and 2020 year to date periods.

BancPlus’ liquidity policy includes both policy limits and policy guidelines for measuring and monitoring liquidity. BancPlus’ policy measures include an Internal Liquidity Ratio, an Internal Liquidity Ratio adjusted for FHLB, an Internal Dependency Ratio adjusted for FHLB and a Maximum Available Funds to Total Assets Ratio. These ratios are calculated monthly. BancPlus also utilizes eleven liquidity guidelines that are reported quarterly. As of September 30, 2021 and December 31, 2020, BancPlus was in compliance with all of its established liquidity policies.

Holding Company Liquidity Management

BancPlus is a corporation separate and apart from BankPlus and, therefore, it must provide for its own liquidity. BancPlus’ main source of funding is dividends declared and paid to it by BankPlus. Statutory and regulatory limitations exist that affect the ability of BankPlus to pay dividends to the holding company. BancPlus believes that these limitations will not impact the ability of the holding company to meet its ongoing short-term cash obligations.

Due to state banking laws, BankPlus may not declare dividends without the prior approval of the MDBCF. BankPlus received permission from the MDBCF to pay dividends of $11.5 million and $9.7 million for the year-to-date periods ended September 30, 2021 and September 30, 2020, respectively. These dividends were used by the holding company to pay dividends to the BancPlus shareholders, principal and interest payments on debt and general operating expenses.

Capital Management and Regulatory Capital Requirements

BancPlus is subject to various capital requirements administered by federal banking regulators. Failure to meet minimum capital requirements can trigger certain mandatory and possibly additional discretionary actions by federal banking regulators that, if undertaken, could have a direct material effect on BancPlus’ business operations.

Under the regulatory capital rules, BancPlus must maintain minimum amounts and ratios of common equity Tier 1 (“CET1”) capital, Tier 1 capital and total capital to risk-weighted assets and of Tier 1 capital to average consolidated assets, referred to as

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the leverage ratio. The adequacy of our capital levels is also subject to qualitative judgments by the federal banking regulators about components, risk weightings and other factors.

In addition, BancPlus must maintain a capital conservation buffer of 2.5%, consisting of CET1 capital, on top of the risk-based minimum capital ratios. A banking organization with a conservation buffer of less than the required amount of 2.5% will be subject to limitations on capital distributions, including dividend payments, and certain discretionary bonus payments to executive officers. Minimum capital requirements, including the capital conservation buffer, to which BankPlus and BancPlus are subject are summarized in the tables below.

Further, under prompt corrective action regulations, an insured depository institution is classified in one of several tiers based on its level of capital and other factors, and may be subject to an escalating series of remedial measures if it is less than “well capitalized.” An institution is deemed “well capitalized” if it satisfies certain capital ratios, summarized in the tables below, and is not subject to any written agreement, order, capital directive, or prompt corrective action directive to meet and maintain a specific capital level for any capital measure.

As of September 30, 2021 and December 31, 2020, BancPlus and BankPlus met all applicable capital adequacy requirements and BankPlus was deemed “well capitalized.” As a bank holding company, BancPlus is not subject to the prompt corrective action regime that applies to insured depository institutions, including BankPlus.

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BancPlus’ consolidated and BankPlus’ actual capital amounts and ratios are shown in the following tables as of the dates indicated (dollars in thousands):

	Actual				Minimum For Capital Adequacy Purposes				Required to be Well Capitalized
As of September 30, 2021:	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
Consolidated:
CET1 Capital to Risk-Weighted Assets	$	374,642	9.57	%	$	273,936	7.00	%	N/A		N/A
Tier 1 Capital to Risk-Weighted Assets	425,598		10.88	%	332,636		8.50	%	N/A		N/A
Total Capital to Risk-Weighted Assets	580,350		13.50	%	410,904		10.50	%	N/A		N/A
Tier 1 Capital to Average Assets	425,598		8.40	%	202,413		4.00	%	N/A		N/A
Bank:
CET1 Capital to Risk-Weighted Assets	$	420,455	10.77	%	$	273,372	7.00	%	$	253,845	6.50	%
Tier 1 Capital to Risk-Weighted Assets	420,455		10.77	%	331,951		8.50	%	312,425		8.00	%
Total Capital to Risk-Weighted Assets	464,456		11.89	%	410,058		10.50	%	390,531		10.00	%
Tier 1 Capital to Average Assets	420,455		8.32	%	202,059		4.00	%	252,574		5.00	%

	Actual				Minimum For Capital Adequacy Purposes				Required to be Well Capitalized
As of December 31, 2020:	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
Consolidated:
CET1 Capital to Risk-Weighted Assets	$	339,936	9.94	%	$	239,437	7.00	%	N/A		N/A
Tier 1 Capital to Risk-Weighted Assets	390,713		11.42	%	290,745		8.50	%	N/A		N/A
Total Capital to Risk-Weighted Assets	485,357		14.19	%	359,155		10.50	%	N/A		N/A
Tier 1 Capital to Average Assets	390,713		8.55	%	182,853		4.00	%	N/A		N/A
Bank:
CET1 Capital to Risk-Weighted Assets	$	387,231	11.36	%	$	238,629	7.00	%	$	221,584	6.50	%
Tier 1 Capital to Risk-Weighted Assets	387,231		11.36	%	289,763		8.50	%	272,719		8.00	%
Total Capital to Risk-Weighted Assets	423,231		12.42	%	357,943		10.50	%	340,898		10.00	%
Tier 1 Capital to Average Assets	387,231		8.49	%	182,531		4.00	%	228,164		5.00	%

Contractual Obligations

Contractual obligations as of September 30, 2021, totaled $827.6 million and were primarily comprised of deposits with maturities of $637.0 million, subordinated debentures of $111.4 million and operating lease obligations of $48.1 million. Contractual obligations due within the next twelve months were $460.6 million and were primarily related to time deposits with maturity dates. Contractual obligations due in more than 12 months were $367.0 million and were comprised of $191.8 million of time deposits with maturity dates and $111.4 million of subordinated debentures with maturities ranging from 2034 through 2037. BancPlus expects to have adequate liquidity to meet these short and long-term obligations through profitability, repayments from loans and investment securities, deposit gathering activity and access to borrowing sources.

Recent Accounting Pronouncements

ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, which requires earlier measurement of credit losses and enhances disclosures. The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and

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other commitments to extend credit held by a reporting entity at each reporting date. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses over the life of the loan. ASU 2016-13 is effective for the Company for annual and interim periods beginning on January 1, 2023. The Company has formed a cross functional team that is assessing data and system needs and evaluating the impact of adopting the new guidance. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but has not yet determined the magnitude of any such one-time adjustments or the overall impact on the Company’s financial statements.

ASU 2020-04, “Reference Rate Reform - Topic 848.” In March 2020, the FASB issued ASU 2020-04 which provides temporary optional expedients and exceptions to the accounting principles generally accepted in the United States (“GAAP”) guidance on contract modifications, hedge accounting, and other transactions affected that reference LIBOR or another reference rate expected to be discontinued. ASU 2020-04 is effective upon issuance and can be applied through December 31, 2022. The Company is still evaluating the impact of ASU 2020-04, but does not expect it to have a material impact on the Company’s consolidated financial statements.

Critical Accounting Policies and Estimates

BancPlus’ unaudited interim condensed consolidated financial statements are prepared based on the application of certain accounting policies, the most significant of which are described in the notes to its condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Certain of these policies require numerous estimates and strategic or economic assumptions that may prove inaccurate or subject to variation and may significantly affect its reported results and financial position for the current period or in future periods. The use of estimates, assumptions, and judgments are necessary when financial assets and liabilities are required to be recorded at, or adjusted to reflect, fair value. Assets carried at fair value inherently result in more financial statement volatility. Fair values and information used to record valuation adjustments for certain assets and liabilities are based on either quoted market prices or are provided by other independent third-party sources, when available. When such information is not available, management estimates valuation adjustments. Changes in underlying factors, assumptions or estimates in any of these areas could have a material impact on BancPlus’ future financial condition and results of operations.

The Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) permits BancPlus, as an emerging growth company, to take advantage of an extended transition period for complying with new or revised accounting standards affecting public companies. BancPlus has elected to take advantage of this extended transition period, which means that the financial statements included in this Quarterly Report on Form 10-Q will not be subject to all new or revised accounting standards generally applicable to public companies for the transition period for so long as BancPlus remains an emerging growth company or until BancPlus affirmatively and irrevocably opts out of the extended transition period under the JOBS Act.

The following is a discussion of the critical accounting policies and significant estimates that BancPlus believes require BancPlus to make the most complex or subjective decisions or assessments. Additional information about these policies can be found in Note 1 of our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2020.

Allowance for Loan Losses

The allowance for loan losses, sometimes referred to as the “allowance,” is established through a provision for loan losses which is charged to expense. Loan losses are charged against the allowance when management determines all or a portion of the loan balance to be uncollectible. Subsequent recoveries, if any, are credited to the allowance for cash received on previously charged-off amounts. If the allowance is considered inadequate to absorb future loan losses on existing loans for any reason, including but not limited to, increases in the size of the loan portfolio, increases in charge-offs or changes in the risk characteristics of the loan portfolio, the provision for loan losses is increased.

A loan is considered impaired when, based on current information and events, it is probable that BancPlus will be unable to collect all amounts due according to the original contractual terms of the loan agreement. The collection of all amounts due according to contractual terms means that both the contractual interest and principal payments of a loan will be collected as scheduled in the loan agreement. An impaired loan is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or, as a practical expedient, at the loan’s observable market price, or the fair value of the underlying collateral. The fair value of collateral, reduced by costs to sell on a discounted basis, is used if a loan is collateral dependent.

In situations where, for economic or legal reasons related to a borrower’s financial difficulties, BancPlus grants a concession to the borrower that BancPlus would not otherwise consider, the related loan is classified as a TDR. BancPlus measures any loss on

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the TDR in accordance with the guidance concerning impaired loans set forth above. Additionally, TDRs are generally placed on non-accrual status at the time of restructuring and included in impaired loans. These loans are returned to accrual status after the borrower demonstrates performance with the modified terms for a sustained period of time and has the capacity to continue to perform in accordance with the modified terms of the restructured debt.

Investment Securities Impairment

Periodically, BancPlus may need to assess whether there have been any events or economic circumstances to indicate that a security on which there is an unrealized loss is impaired on an other-than-temporary basis. In any such instance, BancPlus would consider many factors, including the length of time and the extent to which the fair value has been less than the amortized cost basis, the market liquidity for the security, the financial condition and the near-term prospects of the issuer, expected cash flows, and its intent and ability to hold the investment for a period of time sufficient to recover the temporary loss. Securities on which there is an unrealized loss that is deemed to be other-than-temporary are written down to fair value, with the write-down recorded as a realized loss in securities gains (losses).

The fair values of investment securities are generally determined by various pricing models, monitoring credit ratings and periodic reviews of key metrics. BancPlus evaluates the methodologies used to develop the resulting fair values. BancPlus’ procedures include initial and ongoing review of pricing methodologies and trends. BancPlus seeks to ensure prices represent a reasonable estimate of fair value through the use of broker quotes, current sales transactions from its portfolio and pricing techniques, which are based on the net present value of future expected cash flows discounted at a rate of return market participants would require. As a result of this analysis, if BancPlus determines there is a more appropriate fair value, the price is adjusted accordingly.

Other Real Estate

Other real estate acquired through partial or total satisfaction of loans is initially carried at the fair value less cost to sell at the acquisition, establishing a new cost. Any loss incurred at the date of acquisition is charged to loan loss. Subsequent gains or loss on such assets and related operating income and expenses are reported in current operations when earned or incurred.

Income Tax Accounting

BancPlus uses the asset and liability method of accounting for income taxes as prescribed by GAAP. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. If currently available information indicates it is “more likely than not” that the deferred tax asset will not be realized, a valuation allowance is established. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Accounting for deferred income taxes is a critical accounting estimate because BancPlus exercises significant judgment in evaluating the amount and timing of recognition of the resulting tax liabilities and assets. Management’s determination of the realization of deferred tax assets is based upon management’s judgment of various future events and uncertainties, including the timing and amount of future income, reversing temporary differences which may offset, and the implementation of various tax plans to maximize realization of the deferred tax asset. These judgments and estimates are inherently subjective and reviewed on a continual basis as regulatory and business factors change. Any reduction in estimated future taxable income may require BancPlus to record a valuation allowance against its deferred tax assets.

Item 3. Qualitative and Quantitative Disclosures about Market Risk

Not applicable.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was carried out by management with the participation of BancPlus’ Chief Executive Officer and Chief Financial Officer, of the effectiveness of BancPlus’ disclosure controls and procedures (as defined in Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that as of the end of the period covered by this Quarterly Report on Form 10-Q, BancPlus’ disclosure controls and procedures were effective to ensure that information required to be disclosed by BancPlus in the reports required to be filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within time periods specified in the SEC’s rules and forms.

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Changes in Internal Control over Financial Reporting

There has been no change in BancPlus’ internal control over financial reporting during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, BancPlus’ internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

On March 20, 2019, a complaint (the “Complaint”), Mills v. BankPlus, et al., Case #3:19-cv-00196-CWR-FKB, was filed in the United States District Court for the Southern District of Mississippi, Northern Division, by Alysson Mills, in her capacity as Court-appointed Receiver for Arthur Lamar Adams (“Adams”) and Madison Timber Properties, LLC (“Madison Timber”), naming BankPlus, three former BankPlus employees, one then-current BankPlus employee and other defendants, including defendants affiliated and unaffiliated with BankPlus (“Defendants”). The Complaint seeks to recover damages from the Defendants for the benefit of the receivership estate related to certain investors who were allegedly defrauded by Adams and Madison Timber, whose actions were allegedly attributable to the actions of the Defendants that allegedly enabled negligent, illegal or fraudulent activities engaged in by Adams and Madison Timber. A brief description of the cause of action on the cover sheet filed with the Complaint includes securities, civil conspiracy, aiding and abetting, negligence, and other possible causes of action. The amount of damages (including punitive damages) requested against the Defendants in the Complaint is unspecified. On January 4, 2021, the plaintiff, Mills, filed an Amended Complaint. Answers and/or Motions to Dismiss the Amended complaint were filed by the Defendants. On July 8, 2021, the Court denied the Motion to Dismiss filed by BankPlus. A related motion for reconsideration was filed by BankPlus on August 9, 2021. On September 30, 2021, an order was entered to consolidate for purposes of discovery this case (No. 3:19-cv-00196-CWR-FKB) with three other related cases filed by Mills, the Receiver. By subsequent text-only order (No. 3:18-cv-00866-CWR-FKB) dated October 10, 2021, the four consolidated cases are stayed until January 31, 2022.

In addition to the above, the Company, including subsidiaries, is party to various legal proceedings arising in the ordinary course of business. We do not believe that loss contingencies, if any, arising from pending litigation and regulatory matters will have a material adverse effect on our consolidated financial position or liquidity.

Item 1A. Risk Factors

There have been no material changes to the risk factors previously disclosed under Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, previously filed with the SEC, except as noted below.

The acquisition of First Trust Corporation (“FTC”) by BancPlus and of First Bank and Trust by BankPlus, (the “transaction”) is subject to certain closing conditions that, if not satisfied or waived, will result in the transaction not being completed.

The transaction is subject to customary conditions to closing, including the receipt of required regulatory approvals and the approval of the shareholders of FTC. If any condition to the transaction is not satisfied or waived (to the extent waiver is legally permitted at all), the transaction will not be completed. In addition, BancPlus and FTC may terminate the definitive agreement under certain circumstances even if the transaction is approved by FTC’s shareholders, including but not limited to if the statutory share exchange has not been completed on or before March 31, 2022 (unless the required regulatory approvals are pending and have not been finally resolved, in which event such date shall be automatically extended to June 30, 2022), or if FTC fails to obtain the approval of its shareholders; provided, that the failure of the closing to occur by such date cannot be due to the failure of the party seeking to terminate the definitive agreement to perform or observe the covenants and agreements of such party as set forth in the definitive agreement. In the event the definitive agreement is terminated, BancPlus would not realize any of the expected benefits of having completed the transaction. If the transaction is not completed, additional risks could materialize, which could adversely affect the business, financial condition or results of operations of BancPlus.

BancPlus may not be able to successfully integrate FTC or realize the anticipated benefits of the transaction.

The transaction involves the combination of two bank holding companies and two banks that previously have operated and, until completion of the transaction, will continue to operate independently. A successful combination of the operations of the two entities will depend substantially on the BancPlus’ ability to consolidate operations, systems and procedures and to eliminate redundancies and costs. BancPlus may not be able to combine the operations of FTC with its operations without encountering difficulties, such as:

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•the loss of key employees and customers;

•the disruption of operations and business;

•inability to maintain and increase competitive presence;

•deposit attrition, customer loss and revenue loss;

•possible inconsistencies in standards, control procedures and policies;

•unexpected problems with costs, operations, personnel, technology and credit; and/or

•problems with the assimilation of new operations, sites or personnel, which could divert resources from regular banking operations.

Additionally, general market and economic conditions and governmental actions affecting the financial industry generally may inhibit BancPlus’ successful integration of FTC. Further, BancPlus entered into the definitive agreement with the expectation that the transaction will result in various benefits including, among other things, benefits relating to enhanced revenues, additional geographic markets, cross-selling opportunities, technology, cost savings and operating efficiencies. Achieving the anticipated benefits of the transaction is subject to a number of uncertainties, including whether BancPlus integrates FTC in an efficient and effective manner, and general competitive factors in the marketplace. BancPlus’ failure to achieve these anticipated benefits could result in increased costs, decreases in the amount of expected revenues and diversion of management’s time and energy and could adversely impact BancPlus’ business, financial condition or results of operation. In addition, the attention and effort devoted to the integration of FTC with BancPlus’ existing operations may divert management’s attention from other important issues and could seriously harm BancPlus’ business, financial condition or results of operation. Finally, any cost savings that are realized may be offset by losses in revenues or other charges to earnings.

BancPlus expects to incur substantial expenses related to the transaction.

BancPlus expects to incur substantial expenses in connection with consummation of the transaction and combining the business, operations, networks, systems, technologies, policies and procedures of FTC with BancPlus. Although BancPlus and FTC have assumed that a certain level of transaction and combination expenses would be incurred, there are a number of factors beyond their control that could affect the total amount or the timing of their combination expenses. Many of the expenses that will be incurred, by their nature, are difficult to estimate accurately at the present time. Due to these factors, the transaction and combination expenses associated with the transaction could, particularly in the near term, exceed the savings that BancPlus expects to achieve from the elimination of duplicative expenses and the realization of economies of scale and cost savings related to the combination of the businesses following the consummation of the transaction. As a result of these expenses, both BancPlus and FTC expect to take charges against their earnings before and after the completion of the transaction. The charges taken in connection with the transaction are expected to be significant, although the aggregate amount and timing of such charges are uncertain at present.

The transaction is subject to the receipt of consents and approvals from governmental entities that may impose conditions that could delay or prevent the completion of the transaction or have an adverse effect on the BancPlus following the transaction.

Before the transaction may be completed, various approvals or consents or waivers must be obtained from the Federal Reserve, FDIC, and the MDBCF. These governmental entities may request additional information regarding BancPlus’ and FTC’s regulatory applications and notices, and they may impose conditions on the completion of the transaction or require changes to the terms of the transaction. Such conditions or changes could have the effect of delaying or preventing completion of the transaction or imposing additional costs on, or limiting the revenues of, BancPlus following the transaction, any of which might have an adverse effect on BancPlus following the transaction. Such a condition may also constitute a burdensome condition that may allow FTC to terminate the definitive agreement after June 30, 2022.

BancPlus will be subject to business uncertainties and contractual restrictions while the transaction is pending.

Uncertainty about the effect of the transaction on employees, customers (including depositors and borrowers), suppliers and vendors may have an adverse effect on the business, financial condition or results of operations of BancPlus. These uncertainties may impair BancPlus’ or FTC’s ability to attract, retain and motivate key personnel and customers (including depositors and borrowers) pending the consummation of the transaction, as such personnel and customers may experience uncertainty about their future roles and relationships following the consummation of the transaction. In addition, these uncertainties could cause customers (including depositors and borrowers), vendors and others who deal with BancPlus and/or FTC to seek to change existing business relationships with BancPlus and/or FTC or fail to extend an existing relationship with BancPlus and/or FTC. Moreover, competitors may target each party’s existing customers by highlighting potential uncertainties and integration difficulties that may result from the transaction. The pursuit of the transaction and the preparation for the integration may place a burden on BancPlus’ management and internal resources. Any significant diversion of management attention away from ongoing business concerns and any difficulties encountered in the transition and integration process could adversely affect BancPlus’

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business, financial condition or results of operations. In addition, the definitive agreement restricts each party from taking certain actions without the other party’s consent while the transaction is pending. These restrictions could have an adverse effect on BancPlus’ business, financial condition or results of operations.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

Item 6. Exhibits

2.1*	Agreement and Plan of Share Exchange and Merger, dated September 28, 2021, by and among BancPlus Corporation, BankPlus, First Trust Corporation and First Bank & Trust (incorporated by reference to Exhibit 2.1 of the Current Report on Form 8-K of the Registrant filed on September 29, 2021)
2.2*	Agreement and Plan of Share Exchange and Merger, dated September 18, 2019, by and among BancPlus Corporation, BankPlus, State Capital Corp., and State Bank & Trust Company (incorporated by reference to Annex A of the Company's Registration Statement on Form S-4, as amended (File No. 333-236022), of the Registrant, filed on February 10, 2020)
3.1	Articles of Incorporation of BancPlus Corporation (incorporated by reference to Exhibit 3.1 to the Registration Statement on Form S-4, as amended (File No. 333-236022), of the Registrant, filed on January 31, 2020)
3.2	By-laws of BancPlus Corporation (incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-4, as amended (File No. 333-236022), of the Registrant, filed on February 10, 2020)
4.1	Specimen Certificate for BancPlus Corporation Common Stock (incorporated by reference to Exhibit 4.1 of the Registration Statement on Form S-4 as amended (File No. 333-236022), of the Registrant, filed on January 31, 2020)
4.2	Form of 6.000% Fixed-to-Floating Rate Subordinated Notes due 2030 (incorporated by reference to Exhibit 4.1 of the Current Report on Form 8-K of the Registrant filed on June 5, 2020)
10.1	Form of Shareholder Support Agreement (incorporated by reference to Exhibit 10.1 of the Current Report on Form 8-K of the Registrant filed on September 29, 2021)
31.1	Certification by Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a)
31.2	Certification by Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a)
32.1	Certification by Chief Executive Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification by Chief Financial Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	Inline XBRL Interactive Data
104	Cover Page Interactive Data File (embedded within the Inline XBRL document in Exhibit 101)

* Schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule will be furnished supplementally to the SEC upon request.

65

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

BancPlus Corporation

Date:	November 15, 2021	By:	/s/ William A. Ray
			William A. Ray
			President and Chief Executive Officer

Date:	November 15, 2021	By:	/s/ M. Ann Southerland
			M. Ann Southerland
			Senior Executive Vice President and Chief Financial Officer

66

EX-31.1

EXHIBIT 31.1

Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934,

As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, William A. Ray, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of BancPlus Corporation and Subsidiaries;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 15, 2021
		/s/ William A. Ray
		William A. Ray
		President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934,

As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, M. Ann Southerland, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of BancPlus Corporation and Subsidiaries;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 15, 2021
		/s/ M. Ann Southerland
		M. Ann Southerland
		Senior Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

Certifications Pursuant to 18 U.S.C §1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of BancPlus Corporation and Subsidiaries (the “Company”) for the period ended September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, William A. Ray, President and Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 15, 2021
		/s/ William A. Ray
		William A. Ray
		President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

Certifications Pursuant to 18 U.S.C §1350,

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of BancPlus Corporation and Subsidiaries (the “Company”) for the period ended September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, M. Ann Southerland, Senior Executive Vice President and Chief Financial Officer of the Company, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 15, 2021
		/s/ M. Ann Southerland
		M. Ann Southerland
		Senior Executive Vice President and Chief Financial Officer

XML

Cover - shares	9 Months Ended
	Sep. 30, 2021	Nov. 08, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	333-236022
Entity Registrant Name	BANCPLUS CORPORATION
Entity Incorporation, State or Country Code	MS
Entity Tax Identification Number	64-0655312
Entity Address, Address Line One	1068 Highland Colony Parkway
Entity Address, City or Town	Ridgeland
Entity Address, State or Province	MS
Entity Address, Postal Zip Code	39157
City Area Code	601
Local Phone Number	898-8300
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,112,254
Entity Central Index Key	0001118004
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Assets:
Cash and due from banks	$ 57,417	$ 109,233
Interest bearing deposits with banks	637,652	508,196
Federal funds sold	0	20,116
Total cash and cash equivalents	695,069	637,545
Securities available for sale	540,883	311,373
Securities held to maturity - fair value: $78,905 - 2021; $94,436 - 2020	78,423	93,766
Loans held for sale	13,904	28,684
Loans	3,526,086	3,378,732
Less: Allowance for loan losses	44,001	36,000
Net loans	3,482,085	3,342,732
Premises and equipment	101,715	102,967
Operating lease right-of-use assets	35,305	35,936
Accrued interest receivable	17,120	18,061
Goodwill	2,616	2,616
Other assets	146,204	137,240
Total assets	5,113,324	4,710,920
Liabilities:
Deposits	4,529,868	4,152,810
Advances from Federal Home Loan Bank and other borrowings	31,026	33,771
Subordinated debentures	111,411	111,124
Operating lease liabilities	36,458	37,127
Accrued interest payable	2,647	2,709
Other liabilities	16,028	18,129
Total liabilities	4,727,438	4,355,670
Common Stock, par value $1.00 per share.
40,000,000 authorized at September 30, 2021 and December 31, 2020; 10,112,254 and 10,079,277 issued and outstanding at September 30, 2021 and December 31, 2020, respectively	10,112	10,079
Unearned Employee Stock Ownership Plan compensation	(1,609)	(2,650)
Additional paid-in capital	66,767	67,742
Retained earnings	307,269	273,204
Accumulated other comprehensive income, net	3,347	6,875
Stockholders' equity before redeemable common stock owned by employee stock ownership plan	385,886	355,250
Total shareholders' equity	289,263	280,972
Liabilities and equity	5,113,324	4,710,920
Employee Stock Ownership Plan
Liabilities:
Redeemable common stock owned by the ESOP	96,623	74,278
Common Stock, par value $1.00 per share.
Less: Redeemable common stock owned by the ESOP	$ (96,623)	$ (74,278)

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Fair value of securities held to maturity	$ 78,905	$ 94,436
Common stock, par value per share (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares, issued (in shares)	10,112,254	10,079,277
Common stock outstanding (in shares)	10,112,254	10,079,277

XML

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Interest income:
Interest and fees on loans	$ 43,835	$ 44,083	$ 129,066	$ 113,710
Taxable securities	2,097	1,815	6,024	5,157
Tax-exempt securities	455	573	1,473	1,942
Interest bearing bank balances and other	242	113	493	1,329
Total interest income	46,629	46,584	137,056	122,138
Interest expense:
Deposits	1,746	3,193	5,873	11,259
Short-term borrowings	0	0	0	2
Advances from Federal Home Loan Bank	78	79	233	239
Other borrowings	1,371	1,420	4,112	2,673
Total interest expense	3,195	4,692	10,218	14,173
Net interest income	43,434	41,892	126,838	107,965
Provision for loan losses	1,469	4,671	7,395	7,706
Net interest income after provision for loan losses	41,965	37,221	119,443	100,259
Other operating income:
Service charges on deposit accounts	7,484	5,690	19,226	16,674
Mortgage origination income	1,999	2,827	6,726	5,974
Debit card interchange	2,390	1,909	7,634	5,412
Securities gains, net	0	6	4	57
Other income	7,193	8,193	24,490	17,265
Total other operating income	19,066	18,625	58,080	45,382
Other operating expenses:
Salaries and employee benefits expenses	25,218	23,162	72,365	65,349
Net occupancy expenses	3,606	3,459	10,779	9,709
Furniture, equipment and data processing expenses	6,282	5,801	18,322	15,621
Other expenses	7,716	7,490	19,931	19,834
Total other operating expenses	42,822	39,912	121,397	110,513
Income before income taxes	18,209	15,934	56,126	35,128
Income tax expense	4,012	3,334	10,593	7,613
Net income	$ 14,197	$ 12,600	$ 45,533	$ 27,515
Earnings per common share - basic (in USD per share)	$ 1.43	$ 1.25	$ 4.58	$ 2.98
Earnings per common share - diluted (in USD per share)	$ 1.41	$ 1.24	$ 4.53	$ 2.96

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 14,197	$ 12,600	$ 45,533	$ 27,515
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on securities available for sale	(2,340)	(225)	(4,698)	9,498
Tax effect	583	56	1,170	(2,365)
Total other comprehensive income (loss), net of tax	(1,757)	(169)	(3,528)	7,133
Comprehensive income	$ 12,440	$ 12,431	$ 42,005	$ 34,648

XML

Condensed Consolidated Statements of Shareholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Unearned ESOP Compensation	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income	Less: Redeemable Common Stock Owned by the ESOP
Shares outstanding, beginning balance (in shares) at Dec. 31, 2019		7,652,957
Shareholders' equity, beginning balance at Dec. 31, 2019	$ 172,203	$ 7,653	$ (4,476)	$ 811	$ 247,241	$ 282	$ (79,308)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	27,515				27,515
Other comprehensive loss, net	7,133					7,133
Acquisition of State Capital Corp. (in shares)		2,453,827
Acquisition of State Capital Corp.	71,161	$ 2,454		68,707
Issuance of restricted stock (in shares)		39,155
Issuance of restricted stock	0	$ 39		(39)
Shares withheld to satisfy withholding obligation in the vesting of restricted stock (in shares)		(272)
Shares withheld to satisfy withholding obligation in the vesting of restricted stock	(10)			(10)
Purchase of Company Stock, (in shares)		(12,791)
Purchase of Company stock	(601)	$ (13)		(588)
Stock based compensation	1,052			1,052
Net change fair value of ESOP shares	10,786						10,786
Common stock released by ESOP	1,534		1,534
Dividends declared	(9,693)				(9,693)
Shares outstanding, ending balance (in shares) at Sep. 30, 2020		10,132,876
Shareholders' equity, ending balance at Sep. 30, 2020	281,080	$ 10,133	(2,942)	69,933	265,063	7,415	(68,522)
Shares outstanding, beginning balance (in shares) at Jun. 30, 2020		10,126,817
Shareholders' equity, beginning balance at Jun. 30, 2020	282,954	$ 10,127	(3,375)	70,173	255,990	7,584	(57,545)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	12,600				12,600
Other comprehensive loss, net	(169)					(169)
Issuance of restricted stock (in shares)		18,850
Issuance of restricted stock	0	$ 19		(19)
Purchase of Company Stock, (in shares)		(12,791)
Purchase of Company stock	(601)	$ (13)		(588)
Stock based compensation	367			367
Net change fair value of ESOP shares	(10,977)						(10,977)
Common stock released by ESOP	433		433
Dividends declared	(3,527)				(3,527)
Shares outstanding, ending balance (in shares) at Sep. 30, 2020		10,132,876
Shareholders' equity, ending balance at Sep. 30, 2020	281,080	$ 10,133	(2,942)	69,933	265,063	7,415	(68,522)
Shares outstanding, beginning balance (in shares) at Dec. 31, 2020		10,079,277
Shareholders' equity, beginning balance at Dec. 31, 2020	280,972	$ 10,079	(2,650)	67,742	273,204	6,875	(74,278)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	45,533				45,533
Other comprehensive loss, net	(3,528)					(3,528)
Issuance of restricted stock (in shares)		83,317
Issuance of restricted stock	0	$ 83		(83)
Shares withheld to satisfy withholding obligation in the vesting of restricted stock (in shares)		(4,477)
Shares withheld to satisfy withholding obligation in the vesting of restricted stock	(229)	$ (4)		(225)
Purchase of Company Stock, (in shares)		(45,863)
Purchase of Company stock	(2,433)	$ (46)		(2,387)
Stock based compensation	1,720			1,720
Net change fair value of ESOP shares	(22,345)						(22,345)
Common stock released by ESOP	1,041		1,041
Dividends declared	(11,468)				(11,468)
Shares outstanding, ending balance (in shares) at Sep. 30, 2021		10,112,254
Shareholders' equity, ending balance at Sep. 30, 2021	289,263	$ 10,112	(1,609)	66,767	307,269	3,347	(96,623)
Shares outstanding, beginning balance (in shares) at Jun. 30, 2021		10,111,045
Shareholders' equity, beginning balance at Jun. 30, 2021	288,516	$ 10,111	(1,957)	66,152	296,900	5,104	(87,794)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	14,197				14,197
Other comprehensive loss, net	(1,757)					(1,757)
Issuance of restricted stock (in shares)		1,209
Issuance of restricted stock	0	$ 1		(1)
Stock based compensation	616			616
Net change fair value of ESOP shares	(8,829)						(8,829)
Common stock released by ESOP	348		348
Dividends declared	(3,828)				(3,828)
Shares outstanding, ending balance (in shares) at Sep. 30, 2021		10,112,254
Shareholders' equity, ending balance at Sep. 30, 2021	$ 289,263	$ 10,112	$ (1,609)	$ 66,767	$ 307,269	$ 3,347	$ (96,623)

XML

Condensed Consolidated Statements of Shareholders’ Equity (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Stockholders' Equity [Abstract]
Dividends declared (in USD per share)	$ 0.38	$ 0.35	$ 1.14	$ 1.05

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income per condensed consolidated statements of income	$ 45,533	$ 27,515
Adjustments to reconcile net income to net cash from operating activities:
Provision for loan losses	7,395	7,706
Depreciation and amortization	5,818	4,663
Net loss on sales of premises and equipment	279	294
Net gain on sales of other real estate owned	(169)	(354)
Write-downs of other real estate-owned	186	106
Deferred income tax expense	399	935
Federal Home Loan Bank stock dividends	(9)	(41)
Common stock released by ESOP	1,041	1,534
Stock based compensation expense	1,720	1,052
Origination of loans held for sale	(300,866)	(274,668)
Proceeds from loans held for sale	315,646	264,489
Earnings on bank-owned life insurance	(5,858)	(1,526)
Business Combination, Bargain Purchase, Gain Recognized, Amount	0	(1,078)
Net change in:
Accrued interest receivable and other assets	5,849	(2,987)
Accrued interest payable and other liabilities	(2,163)	(3,928)
Net cash from operating activities	74,801	23,712
Cash flows from investing activities:
Purchases of securities available for sale	(317,600)	(77,290)
Maturities and calls of securities available for sale	81,015	112,835
Purchases of securities held to maturity	(19,103)	(777)
Maturities, prepayments and calls of securities held to maturity	34,318	12,071
Net increase in loans	(151,332)	(465,459)
Purchases of premises and equipment	(5,188)	(6,992)
Proceeds from sales of premises and equipment	31	40
Proceeds from sales of other real estate owned	4,672	4,955
Investment in unconsolidated entities, net	(96)	(289)
Purchase of bank-owned life insurance	(10,000)	0
Proceeds from bank-owned life insurance	5,987	0
Purchases or redemptions of Federal Home Loan Bank stock	(163)	2,562
Cash received in excess of cash paid for acquisition	0	75,303
Net cash used in investing activities	(377,459)	(343,041)
Net increase (decrease) in:
Noninterest-bearing deposits	168,926	390,152
Money market, negotiable order of withdrawal, and savings deposits	265,081	21,169
Certificates of deposit	(56,950)	(36,389)
Payments on Federal Home Loan Bank advances	(120)	(14,884)
Proceeds from issuance of subordinated debentures	0	60,000
Payment of subordinated debt issuance costs	0	(1,439)
Payments on other borrowings	(2,625)	(2,625)
Cash dividends paid on common stock	(11,468)	(9,693)
Purchase of Company stock	(2,433)	(601)
Shares withheld to pay taxes on restricted stock vesting	(229)	(10)
Net cash from financing activities	360,182	405,680
Net change in cash and cash equivalents	57,524	86,351
Cash and cash equivalents at beginning of period	637,545	312,972
Cash and cash equivalents at end of period	695,069	399,323
Supplemental cash flow information:
Interest paid	10,280	10,889
Federal and state income tax payments	9,950	7,175
Acquisition of real estate in non-cash foreclosures	4,924	5,836
Fair value of assets acquired net of liabilities assumed	$ 0	$ 72,251

XML

Basis of Presentation

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

BancPlus Corporation (the “Company”) is a bank holding company headquartered in Ridgeland, Mississippi operating in one reportable segment. BankPlus (the “Bank”), the principal operating subsidiary and sole banking subsidiary of the Company, is a commercial bank primarily engaged in the business of commercial and consumer banking. In addition to general and consumer banking, other products and services offered though the Bank’s subsidiaries include certain insurance and annuity services, asset and investment management and financial planning services. Oakhurst Development, Inc. (“Oakhurst”) is a real estate subsidiary originally formed by the Company to liquidate a real estate development that was acquired by the Bank through foreclosure in 2002. Oakhurst became active again in March 2009 and holds loans and other real estate.

The unaudited interim condensed consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest, and reflect all adjustments (consisting of normal recurring adjustments) that are necessary in the opinion of the Company’s management to fairly present the financial position, results of operations and cash flows of the Company. They have been derived from the audited consolidated financial statements for the fiscal year ended December 31, 2020; however, certain notes and information have been omitted from the interim periods. Therefore, these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2020. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The accounting and financial reporting policies followed by the Company conform, in all material respects, to the accounting principles generally accepted in the United States (“GAAP”) and to general practices within the financial services industry. The results of operations for the interim periods are not necessarily indicative of the results to be expected for future interim periods or for the entire year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Particularly given the effects of the COVID-19 pandemic, the allowance for loan losses, provision for loan losses, the fair value of financial instruments and the status of contingencies are particularly subject to change. Material estimates that are subject to significant change in the near term are the allowance for loan losses, provision for loan losses, valuation of other real estate owned and fair values of financial instruments. Actual results could differ from these estimates.

Recently Issued But Not Yet Effective Accounting Standards

Accounting Standards Update 2016-13 (“ASU 2016-13”), “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, which requires earlier measurement of credit losses and enhances disclosures. The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses over the life of the loan. ASU 2016-13 was originally effective for the Company for annual and interim periods beginning on January 1, 2021. Subsequently, FASB approved a deferral of the effective date. ASU 2016-13 will now be effective for the Company for annual and interim periods beginning on January 1, 2023. The Company has formed a cross functional team that is assessing data and system needs and evaluating the impact of adopting the new guidance. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the Company adopts the new standard, but has not yet determined the magnitude of the one-time adjustment or the overall impact on the Company’s consolidated financial statements.

Accounting Standards Update 2020-04 (“ASU 2020-04”), “Reference Rate Reform - Topic 848.” In March 2020, the FASB issued ASU 2020-04, which provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications, hedge accounting, and other transactions affected that reference the London Inter-Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. ASU 2020-04 is effective upon issuance and can be applied through December 31, 2022. The company is still evaluating the impact of ASU 2020-04, but does not expect it to have a material impact on the Company’s consolidated financial statements.

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Earnings Per Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted number of common shares outstanding during the period and the number of common shares that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during the reporting period.

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands except per share data)	2021		2020		2021		2020
Net income	$	14,197	$	12,600	$	45,533	$	27,515
Weighted average common shares outstanding	9,934		10,070		9,936		9,231
Diluted effect of unallocated stock	116		64		105		72
Diluted common shares	10,050		10,134		10,041		9,303
Basic earnings per common share	$	1.43	$	1.25	$	4.58	$	2.98
Diluted earnings per common share	$	1.41	$	1.24	$	4.53	$	2.96

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Business Combination

9 Months Ended

Sep. 30, 2021

Business Combination and Asset Acquisition [Abstract]

Business Combination

Business Combinations

State Capital Corp.

On April 1, 2020, the Company completed its previously announced merger with State Capital Corp. (“SCC”), the holding company of State Bank & Trust Company (“State Bank”). Pursuant to the terms of the Agreement and Plan of Share Exchange and Merger, dated September 18, 2019, by and among the Company, the Bank, SCC, and State Bank (the “Merger Agreement”), following BancPlus’ acquisition of SCC by a statutory share exchange, SCC was merged with and into the Company, with the Company surviving the merger (the “Merger”). Immediately thereafter, State Bank was merged with and into the Bank, with the Bank surviving the merger. As a result of the Merger, the Company’s geographic footprint expanded in Mississippi, Louisiana and Alabama, providing access to new markets and deposits.

Pursuant to the Merger Agreement, holders of SCC common stock received 0.6950 shares of the Company’s common stock, par value $1.00 per share, for each share of SCC common stock, par value $1.25 per share, held immediately prior to the effective time of the Merger, plus cash in lieu of fractional shares. The Company issued 2,453,827 shares of common stock to holders of SCC common stock, in addition to approximately $12,000 in lieu of fractional shares. In connection with the Merger, the Company incurred approximately $6.4 million of acquisition expenses, of which approximately $6.2 million were incurred during the nine months ended September 30, 2020. These expenses are recorded in other operating expenses and furniture, equipment and data processing expenses in the Company’s Condensed Consolidated Statement of Income for the nine months ended September 30, 2020.

The excess fair value of net assets acquired over cost paid was recorded as a gain on bargain purchase during 2020. The gain on bargain purchase was primarily the result of changes in the value of the Company’s common stock due to the timing of the closing of the Merger relative to when the Merger Agreement was signed and declines in the overall market as a result of the COVID-19 pandemic over that period.

The following table reflects the consideration paid and the fair value allocation of assets acquired and liabilities assumed as of the acquisition date:

(In thousands)
Purchase price allocation:
Common stock issued			$	71,161
Cash paid for fractional shares			12
Total purchase price			$	71,173
Assets acquired:
Cash and due from banks	$	75,315
Securities, Federal Home Loan Bank (“FHLB”) stock and First National Bankers Bankshares, Inc. stock	97,910
Loans, net	880,390
Premises and equipment	29,968
Accrued interest receivable	3,664
Bank-owned life insurance	28,441
Core deposit intangible	6,045
Taxes receivable	7,787
Deferred tax asset, net	5,972
Other assets	3,330
Total assets acquired	$	1,138,822
Liabilities assumed:
Deposits	$	1,024,381
Advances from FHLB and other borrowings	14,563
Subordinated debentures	11,121
Deferred compensation	10,310
Other liabilities	6,196
Total liabilities assumed	$	1,066,571
Net assets acquired			72,251
Excess of fair value of net assets acquired over consideration paid - Gain on bargain purchase			$	(1,078)

In connection with the Merger, the Company recorded a $6.0 million core deposit intangible, which will be amortized over 10 years. The Company also acquired loans with a fair value of $880.4 million, net of a $19.1 million fair value discount, which included a credit mark discount of $11.6 million.

Revenues and earnings of the acquired company since the Merger date have not been disclosed as it is not practicable as SCC was merged into BancPlus and separate financial information for SCC is not available. The following table presents unaudited pro forma information as if the Merger with SCC had occurred on January 1, 2020. This pro forma information combines the historic condensed consolidated results of operations of BancPlus and SCC after giving effect to certain adjustments, including purchase accounting fair value adjustments and amortization of intangibles, as well as the related income tax effects of those adjustments. The pro forma information does not necessarily reflect the results of operations that would have occurred had the Merger occurred on January 1, 2020.

	Three Months Ended		Nine Months Ended
(In thousands, except per share data)	September 30, 2020		September 30, 2020
Net interest income	$	43,828	$	123,958
Other operating income	18,626		47,034
Net income available to common shareholders	13,993		27,539
Earnings per common share:
Basic	$	1.39	$	2.74
Diluted	1.38		2.72

First Trust Corporation

On September 28, 2021, the Company entered in an Agreement and Plan of Share Exchange and Merger with First Trust Corporation (“FTC”), the parent company of First Bank and Trust (“FBT”), whereby the Company will acquire FTC and the Bank will acquire FBT (the “transaction”). The transaction is expected to close in the first quarter of 2022, subject to customary closing conditions, including receipt of required regulatory approvals and the approval by shareholders of FTC.

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Investment Securities

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

The following is a summary of the amortized cost and fair value of securities available for sale.

	Amortized		Gross Unrealized				Fair
(In thousands)	Cost		Gains		Losses		Value
September 30, 2021:
U.S. Government agency obligations	$	301,619	$	421	$	2,199	$	299,841
Residential mortgage-backed securities	118,554		3,522		230		121,846
Commercial mortgage-backed securities	14,764		146		16		14,894
Asset-backed securities	13,068		506		35		13,539
Corporate investments	43,000		1,210		60		44,150
State and political subdivisions	45,422		1,310		119		46,613
Total available for sale	$	536,427	$	7,115	$	2,659	$	540,883
December 31, 2020:
U.S. Government agency obligations	$	12,092	$	342	$	—	$	12,434
Residential mortgage-backed securities	181,569		5,644		1		187,212
Commercial mortgage-backed securities	16,793		538		—		17,331
Asset backed securities	13,990		543		86		14,447
Corporate investments	32,750		420		22		33,148
State and political subdivisions	45,025		1,833		57		46,801
Total available for sale	$	302,219	$	9,320	$	166	$	311,373

Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

The following is a summary of the amortized cost and fair value of securities held to maturity.

	Amortized		Gross Unrealized				Fair
(In thousands)	Cost		Gains		Losses		Value
September 30, 2021:
States and political subdivisions	$	78,423	$	482	$	—	$	78,905
Total held to maturity	$	78,423	$	482	$	—	$	78,905
December 31, 2020:
States and political subdivisions	$	93,766	$	670	$	—	$	94,436
Total held to maturity	$	93,766	$	670	$	—	$	94,436

All mortgage-backed securities in the above tables were issued or guaranteed by U.S. government agencies or sponsored agencies.

Provided below is a summary of investment securities that were in an unrealized loss position and the length of time that individual securities have been in a continuous loss position.

	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value	Unrealized Losses
(In thousands)
September 30, 2021:
Available for sale:
U.S. Government agencies	$	255,063	$	2,199	$	—	$	—	255,063	$	2,199
Residential mortgage-backed securities	12,031		230		—		—		12,031	230
Commercial mortgage-backed securities	3,174		16		—		—		3,174	16
Asset backed securities	—		—		2,271		35		2,271	35
Corporate investments	6,941		60		—		—		6,941	60
States and political subdivisions	5,636		119		—		—		5,636	119
	$	282,845	$	2,624	$	2,271	$	35	285,116	$	2,659
December 31, 2020:
Available for sale:
Residential mortgage-backed securities	$	4,471	$	1	$	—	$	—	4,471	$	1
Commercial mortgage-backed securities	305		—		—		—		305	—
Asset backed securities	2,492		86		—		—		2,492	86
Corporate investments	9,229		22		—		—		9,229	22
States and political subdivisions	3,028		57		—		—		3,028	57
	$	19,525	$	166	$	—	$	—	19,525	$	166

The number of debt securities in an unrealized loss position increased from 13 at December 31, 2020 to 62 at September 30, 2021. The unrealized losses shown above are due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost bases, which may be at maturity, the Company does not consider these investments to be impaired on an other-than-temporary basis at September 30, 2021.

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

	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
(In thousands)	Cost		Value		Cost		Value
September 30, 2021:
One year or less	$	11,330	$	11,402	$	12,437	$	12,455
After one through five years	179,898		179,041		46,344		46,558
After five through ten years	204,514		205,651		16,887		17,137
After ten years	140,685		144,789		2,755		2,755
	$	536,427	$	540,883	$	78,423	$	78,905

The following is a summary of the amortized cost and fair value for investment securities which were pledged to secure public deposits and for other purposes required or permitted by law.

	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
(In thousands)	Cost		Value		Cost		Value
September 30, 2021	$	441,300	$	444,560	$	44,697	$	45,144
December 31, 2020	$	251,913	$	260,351	$	57,110	$	57,770

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Loans

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Loans

Loans

The following is a summary of the Company’s loan portfolio by loan class.

(In thousands)	September 30, 2021		December 31, 2020
Secured by real estate:
Residential properties	$	773,928	$	738,340
Construction and land development	465,564		403,496
Farmland	212,645		217,104
Other commercial	1,339,214		1,224,633
Total real estate	2,791,351		2,583,573
Commercial and industrial loans	534,160		635,714
Agricultural production and other loans to farmers	101,973		85,469
Consumer and other loans	98,602		73,976
Total loans before allowance for loan losses	$	3,526,086	$	3,378,732

Loans are stated at the amount of unpaid principal, before allowance for loan losses. Interest on loans is calculated using the simple interest method on daily balances of the principal amount outstanding.

Loan Origination/Risk Management/Credit Concentration - The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. The Company’s Board of Directors reviews and approves these policies and procedures on a regular basis. Although the Company has a diversified loan portfolio, the Company has concentrations of credit risks related to the real estate market, including residential, commercial, and construction and land development lending. Most of the Company’s lending activity occurs within Mississippi, Louisiana, and Alabama.

The risk characteristics of the Company’s material portfolio segments are as follows:

Residential Real Estate Loans - The residential real estate loan portfolio consists of residential loans for single and multifamily properties. Residential loans are generally secured by owner occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can be impacted by economic conditions within their market area. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

Commercial Real Estate Loans - Commercial real estate loans include construction and land development loans, loans secured by farmland and other commercial real estate loans.

Construction and land development loans are usually based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are considered to be higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing.

Farmland loans are generally made for the purpose of acquiring land devoted to crop production or livestock, the propagation of timber or the operation of a similar type of business on the secured property. Sources of repayment for these loans generally include income generated from operations of a business on the property, rental income, or sales of timber. Repayment may be impacted by changes in economic conditions which affect underlying collateral values.

Commercial real estate loans typically involve larger principal amounts and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria.

Commercial and Industrial Loans - The commercial and industrial loan portfolio consists of loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchase or other expansion projects. Commercial loan underwriting standards are designed to promote relationship banking rather than transactional banking and are underwritten based on the borrower’s expected ability to profitably operate its business. The cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value. Most commercial loans are secured by assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. In the case of loans secured by accounts receivable, the availability of funds for repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.

Consumer and Other Loans - The consumer and other loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes.  Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose.  Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s market area) and the creditworthiness of a borrower.

Loans that are 30 days or more past due based on payments received and applied to the loan are considered delinquent. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions and collection efforts, that a borrower's financial condition is such that collection of interest, but not necessarily principal, is doubtful. A loan is typically placed on non-accrual when the contractual payment of principal or interest becomes 90 days past due unless the loan is well-secured and in the process of collection. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. Current year interest previously recorded, but deemed not collectible, is reversed and charged against current year income. Prior year interest previously recorded, but deemed not collectible, is charged against the allowance.

Payments subsequently received on non-accrual loans are applied to principal. Interest income is recognized to the extent that cash payments are received in excess of principal due. A loan may return to accrual status when principal and interest payments are no longer past due and collectability is reasonably assured.

The following table presents the recorded investment in nonaccrual loans, segregated by class.

(In thousands)	September 30, 2021		December 31, 2020
Secured by real estate:
Residential properties	$	3,318	$	3,869
Construction and land development	58		1,863
Farmland	1,893		158
Other commercial	2,324		7,947
Total real estate	7,593		13,837
Commercial and industrial loans	106		12
Agricultural production and other loans to farmers	135		85
Consumer and other loans	210		177
Total nonaccrual loans	$	8,044	$	14,111

An age analysis of past due loans (including both accruing and non-accruing loans) segregated by class of loans is as follows:

(In thousands)	Past Due 30-89 Days		Past Due 90 Days or More		Total Past Due		Current		Total Loans		Past Due 90 Days or More and Accruing
September 30, 2021
Secured by real estate:
Residential properties	$	5,427	$	2,008	$	7,435	$	766,493	$	773,928	$	696
Construction and land development	307		1,331		1,638		463,926		465,564		1,331
Farmland	189		515		704		211,941		212,645		46
Other commercial	4,037		317		4,354		1,334,860		1,339,214		14
Total real estate	9,960		4,171		14,131		2,777,220		2,791,351		2,087
Commercial and industrial loans	1,144		192		1,336		532,824		534,160		94
Agricultural production and other loans to farmers	23		226		249		101,724		101,973		94
Consumer loans	338		234		572		98,030		98,602		24
Total	$	11,465	$	4,823	$	16,288	$	3,509,798	$	3,526,086	$	2,299

(In thousands)	Past Due 30-89 Days		Past Due 90 Days or More		Total Past Due		Current		Total Loans		Past Due 90 Days or More and Accruing
December 31, 2020
Secured by real estate:
Residential properties	$	5,836	$	2,016	$	7,852	$	730,488	$	738,340	$	1,174
Construction and land development	713		3,086		3,799		399,697		403,496		1,843
Farmland	373		779		1,152		215,952		217,104		618
Other commercial	3,956		3,084		7,040		1,217,593		1,224,633		2,417
Total real estate	10,878		8,965		19,843		2,563,730		2,583,573		6,052
Commercial and industrial loans	2,195		135		2,330		633,384		635,714		135
Agricultural production and other loans to farmers	319		15		334		85,135		85,469		15
Consumer loans	444		278		722		73,254		73,976		101
Total	$	13,836	$	9,393	$	23,229	$	3,355,503	$	3,378,732	$	6,303

Impaired Loans - Impaired loans include nonperforming loans, loans modified in troubled debt restructurings (“TDRs”) where concessions have been granted to borrowers experiencing financial difficulties, and certain other loans identified by management. Certain other loans identified by management consist of performing loans with specific allocations of the allowance for loan loss. Impaired loans, or portions thereof, are charged-off when deemed uncollectible.

Impaired loans, segregated by class were as follows:

	September 30, 2021
	Principal		Recorded		Related
(In thousands)	Balance		Balance (1)		Allowance
Impaired loans with no related allowance:
Secured by real estate:
Residential properties	$	7,666	$	5,099	$	—
Construction and land development	3,669		1,656		—
Farmland	11,994		11,439		—
Other commercial	4,015		2,448		—
Total real estate	27,344		20,642		—
Commercial and industrial	19,723		19,393		—
Agricultural production and other loans to farmers	289		147		—
Consumer and other loans	236		210		—
Total	$	47,592	$	40,392	$	—
Impaired loans with related allowance:
Secured by real estate:
Residential properties	$	1,060	$	1,060	$	9
Construction and land development	—		—		—
Farmland	—		—		—
Other commercial	1,948		1,948		276
Total real estate	3,008		3,008		285
Commercial and industrial	2,324		2,324		991
Agricultural production and other loans to farmers	—		—		—
Consumer and other loans	—		—		—
Total	5,332		5,332		1,276
Total impaired loans	$	52,924	$	45,724	$	1,276

(1) Recorded balance represents the carrying value – the contractual principal obligation due from the customer less charge offs and payments applied.    

	December 31, 2020
	Principal		Recorded		Related
(In thousands)	Balance		Balance (1)		Allowance
Impaired loans with no related allowance:
Secured by real estate:
Residential properties	$	8,474	$	5,795	$	—
Construction and land development	5,530		3,462		—
Farmland	11,024		10,584		—
Other commercial	8,439		5,149		—
Total real estate	33,467		24,990		—
Commercial and industrial	10,386		9,962		—
Agricultural production and other loans to farmers	156		97		—
Consumer and other loans	216		177		—
Total	$	44,225	$	35,226	$	—
Impaired loans with related allowance:
Secured by real estate:
Residential properties	$	1,073	$	1,073	$	9
Construction and land development	—		—		—
Farmland	—		—		—
Other commercial	6,072		6,039		2,028
Total real estate	7,145		7,112		2,037
Commercial and industrial	4,430		4,430		2,158
Agricultural production and other loans to farmers	—		—		—
Consumer and other loans	—		—		—
Total	11,575		11,542		4,195
Total impaired loans	$	55,800	$	46,768	$	4,195

(1)Recorded balance represents the carrying value – the contractual principal obligation due from the customer less charge-offs and payments applied.

The average recorded investment and interest recognized for impaired loans for the three and nine months ended September 30, 2021 and 2020 are presented below.

	Three Months Ended September 30,
	2021				2020
	Average		Interest		Average		Interest
(In thousands)	Investment		Recognized		Investment		Recognized
Secured by real estate:
Residential properties	$	6,123	$	42	$	6,934	$	38
Construction and land development	1,139		23		2,026		31
Farmland	11,150		104		10,515		127
Other commercial	5,046		14		12,389		61
Total real estate	23,458		183		31,864		257
Commercial and industrial	21,728		281		1,133		7
Agricultural production and other loans to farmers	146		3		97		—
Consumer loans	210		—		180		—
Total	$	45,542	$	467	$	33,274	$	264

	Nine Months Ended September 30,
	2021				2020
	Average		Interest		Average		Interest
(In thousands)	Investment		Recognized		Investment		Recognized
Secured by real estate:
Residential properties	$	6,489	$	106	$	5,773	$	114
Construction and land development	2,107		80		2,013		96
Farmland	10,452		356		10,517		382
Other commercial	6,827		129		11,876		176
Total real estate	25,875		671		30,179		768
Commercial and industrial	20,076		753		689		20
Agricultural production and other loans to farmers	94		3		78		—
Consumer loans	191		—		182		—
Total	$	46,236	$	1,427	$	31,128	$	788

There were no modifications classified as TDRs for the nine months ended September 30, 2021 or 2020. Although there were additional modifications of terms on some loans, the prevailing modifications during the reported periods were related to converting the loans to interest only for a period of time, reductions in the interest rates, and/or extensions of payment dates or maturity dates. Because the majority of these loans were classified as impaired loans before restructuring, the modifications did not materially impact the Company’s determination of the allowance for loan losses. The Company did not forgive any principal on the above loans. The allowance for loan losses attributable to restructured loans was $169,000 and $2.0 million at September 30, 2021 and December 31, 2020, respectively. The primary reason for the decrease in the allowance for loan losses attributable to restructured loans was a $1.8 million payment received in the first quarter of 2021 related to a loan classified as a TDR in 2019. The Company defines a payment default as a payment received more than 90 days after its due date.

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Allowance for Loan Losses

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Allowance for Loan Losses

Allowance for Loan LossesAs management evaluates the allowance for loan losses, it is categorized as follows: (1) specific allocations; (2) allocations for classified assets with no specific allowance, based on historical loan experience for similar loans with similar characteristics, adjusted as necessary, to reflect the impact of current conditions; and (3) general allocations for each major loan category for loans not deemed impaired or classified, segmented by loan class based on historical loss experience and other risk factors. In assessing general economic conditions, management monitors several factors, including regional and national economic conditions, real estate market conditions and recently enacted regulations with potential economic effects.

Credit Quality Indicators – The Company utilizes a risk grading matrix to assign a grade to each of its commercial and real estate loans. Loans are rated on a scale of 1 to 10. A description of the general characteristics of the 10 risk ratings is as follows:

•Risk Grades 1, 2, 3, 4 and 5 – These grades include loans to borrowers of solid credit quality with no higher than normal risk of loss. Borrowers in these categories have satisfactory financial strength and adequate cash flow coverage to service debt requirements. Collateral type and quality, as well as protection, are adequate. The borrower’s management is strong and capable, financial information is timely and accurate, and guarantor support is strong.

•Risk Grade 6 – Pass and Watch – Loans in this category are currently protected, but risks are emerging that warrant more than normal attention and have above average risk of loss. These factors require a higher level of monitoring and may include emerging balance sheet weaknesses, strained liquidity, increased leverage ratio, and weakening management. Collateral support is less marketable or limited use and, although the protection is sufficient, the loan-to-value ratio may not meet policy guidelines. Guarantors may have a limited ability and willingness to provide intermediate support. Also, considerations surrounding industry deterioration, increased competition and minor policy exceptions concerning structure or amortization may affect the rating of these loans.

•Risk Grade 7 – Special Mention – The Company’s special mention rating is intended to closely align with the regulatory definition. A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of repayment prospects. These weaknesses may include deteriorating balance sheets, strained liquidity and elevated leverage ratios. Cash flow and profitability are marginally sufficient to service debt and collateral is exhibiting signs of decline in value; however, protection is currently sufficient. Limited management experience or weaknesses have emerged requiring more than normal supervision and uncertainties regarding the quality of the financials are not explained. Guarantor has very limited ability and willingness to provide short-term support. Moderate policy exceptions concerning structure or amortization may be considered in order to provide relief to the borrower. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

•Risk Grade 8 – Substandard – A loan in this category is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. Factors affecting these loans may include balance sheet deterioration that has resulted in illiquid, highly leveraged or deficit net worth, cash flow that is not able to service debts as structured, collateral protection that may be inadequate, guarantor support that may be virtually non-existent, and management that is poor. Loans may require a major policy exception concerning structure or amortization. They are characterized by the distinct possibility that the Company will incur some loss if the deficiencies are not corrected.

•Risk Grade 9 – Doubtful – Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable.

•Risk Grade 10 – Loss – Loans are considered uncollectible and of such little value that continuing to carry them as an active asset is not warranted. It does not mean that there will be no recovery, but, rather, it is not practical or desirable to defer writing off these assets even though a partial recovery may be possible in the future.

Classified loans for the Company include loans in Risk Grades 8, 9 and 10. Loans may be classified but not considered impaired, due to one of the following reasons: (i) the loan falls below the established minimum dollar thresholds for loan impairment testing or (ii) the loan was tested for impairment, but not deemed to be impaired.

The following table summarizes the credit quality of the Company’s loan portfolio by loan class for the period indicated:

	Risk Grades		Risk Grade		Risk Grade		Risk Grade
(In thousands)	1-6		7		8		9		Total
September 30, 2021
Secured by real estate:
Residential properties	$	759,167	$	21	$	14,740	$	—	$	773,928
Construction and land development	460,712		4,107		745		—		465,564
Farmland	199,608		—		13,037		—		212,645
Other commercial	1,330,515		1,001		7,621		77		1,339,214
Total real estate	2,750,002		5,129		36,143		77		2,791,351
Commercial and industrial	510,359		—		23,756		45		534,160
Agricultural production and other loans to farmers	101,549		71		353		—		101,973
Consumer and other loans	98,302		—		300		—		98,602
Total	$	3,460,212	$	5,200	$	60,552	$	122	$	3,526,086

	Risk Grades		Risk Grade		Risk Grade		Risk Grade
(In thousands)	1-6		7		8		9		Total
December 31, 2020
Secured by real estate:
Residential properties	$	721,024	$	—	$	17,316	$	—	$	738,340
Construction and land development	401,347		—		2,149		—		403,496
Farmland	205,211		—		11,893		—		217,104
Other commercial	1,209,365		—		15,041		227		1,224,633
Total real estate	2,536,947		—		46,399		227		2,583,573
Commercial and industrial	619,086		51		16,526		51		635,714
Agricultural production and other loans to farmers	85,197		91		181		—		85,469
Consumer and other loans	73,560		—		416		—		73,976
Total	$	3,314,790	$	142	$	63,522	$	278	$	3,378,732

Transactions in the allowance for loan losses and balances in the loan portfolio by loan segment are as follows:

(In thousands)	Commercial and Industrial		Commercial Real Estate		Residential		Consumer and other		Total
Three Months Ended September 30, 2021
Allowance for loan losses:
Beginning balance	$	6,493	$	23,051	$	10,234	$	2,226	$	42,004
Provision for loan losses	(565)		616		352		1,066		1,469
Recoveries on loans	175		1,625		59		449		2,308
Loans charged off	(37)		(349)		(122)		(1,272)		(1,780)
Ending balance	$	6,066	$	24,943	$	10,523	$	2,469	$	44,001
Nine Months Ended September 30, 2021
Allowance for loan losses:
Beginning balance	$	6,337	$	20,163	$	7,900	$	1,600	$	36,000
Provision for loan losses	(433)		3,481		2,581		1,766		7,395
Recoveries on loans	479		2,277		340		2,046		5,142
Loans charged off	(317)		(978)		(298)		(2,943)		(4,536)
Ending balance	$	6,066	$	24,943	$	10,523	$	2,469	$	44,001
Period End Allowance Balance Allocated To:
Individually evaluated for impairment	$	991	$	276	$	9	$	—	$	1,276
Collectively evaluated for impairment	5,075		24,667		10,514		2,469		42,725
Ending balance	$	6,066	$	24,943	$	10,523	$	2,469	$	44,001

(In thousands)	Commercial and Industrial		Commercial Real Estate		Residential		Consumer and other		Unallocated		Total
Three Months Ended September 30, 2020
Allowance for loan losses:
Beginning balance	$	3,269	$	12,580	$	5,968	$	1,340	$	902	$	24,059
Provision for loan losses	2,812		1,835		170		(82)		(64)		4,671
Recoveries on loans	34		103		140		827		—		1,104
Loans charged off	(261)		(1,960)		(34)		(731)		—		(2,986)
Balance, end of year	$	5,854	$	12,558	$	6,244	$	1,354	$	838	$	26,848
Nine Months Ended September 30, 2020
Allowance for loan losses:
Beginning balance	$	2,773	$	10,766	$	5,568	$	1,135	$	1,258	$	21,500
Provision for loan losses	3,427		3,824		707		168		(420)		7,706
Recoveries on loans	148		150		237		2,619		—		3,154
Loans charged off	(494)		(2,182)		(268)		(2,568)		—		(5,512)
Ending balance	$	5,854	$	12,558	$	6,244	$	1,354	$	838	$	26,848
Period End Allowance Balance Allocated To:
Individually evaluated for impairment	$	471	$	1,949	$	17	$	—	$	—	$	2,437
Collectively evaluated for impairment	5,383		10,609		6,227		1,354		838		24,411
Ending balance	$	5,854	$	12,558	$	6,244	$	1,354	$	838	$	26,848

The following table provides the recorded investment in loans, net of unearned income, based on the Company’s impairment methodology as of the dates presented:

(In thousands)	Commercial and Industrial		Commercial Real Estate		Residential		Consumer and other		Total
September 30, 2021
Individually evaluated for impairment	$	21,611	$	14,046	$	2,369	$	174	$	38,200
Collectively evaluated for impairment	512,549		2,003,377		771,559		200,401		3,487,886
Ending balance	$	534,160	$	2,017,423	$	773,928	$	200,575	$	3,526,086
December 31, 2020
Individually evaluated for impairment	$	14,392	$	25,234	$	6,868	$	274	$	46,768
Collectively evaluated for impairment	621,322		1,819,999		731,472		159,171		3,331,964
Ending balance	$	635,714	$	1,845,233	$	738,340	$	159,445	$	3,378,732

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Regulatory Matters

9 Months Ended

Sep. 30, 2021

Regulatory Matters [Abstract]

Regulatory Matters

Regulatory Matters

The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by state and federal banking agencies. Failure to meet minimum capital requirements triggers certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the consolidated financial statements. 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 assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

The U.S. capital rules, which in substance adopted the international Basel III Capital Rules and accordingly are referred to as the Basel III rules, became effective for both the Company and the Bank on January 1, 2015, with full compliance with all of the requirements being phased in over a multi-year schedule and fully phased in by January 1, 2019. The Basel III rules require banking institutions to comply with three minimum risk-based capital ratios for common equity Tier 1 (“CET1”) capital, Tier 1 capital, and total capital, as well as a minimum leverage ratio based on Tier 1 capital.

Under the Basel III rules, the Company must maintain a capital conservation buffer of CET1 capital above the minimum risk-based capital ratios. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. If, after deducting the buffer amount from its CET1 capital, Tier 1 capital, and total capital, any of these amounts results in a risk-based capital ratio below the minimum, a banking institution will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. The capital conservation buffer, which was 2.50% at September 30, 2021 and December 31, 2020, is included in the minimum capital requirements relative to risk-weighted assets in the following table. Management believes as of September 30, 2021 and December 31, 2020, the Company and the Bank met Basel III minimum capital requirements to which they are subject.

The Bank is also subject to capital requirements under the prompt corrective action regime. As of September 30, 2021, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. The prompt corrective action framework applies only to insured depository institutions, such as the Bank, and not to their holding companies, such as the Company. To be categorized as well capitalized, an insured depository institution must maintain certain ratios of CET1 capital, Tier 1 capital and total capital to risk-weighted assets, and of Tier 1 capital to adjusted quarterly average assets. There are no conditions or events since that notification that management believes have changed the Bank’s category. The amounts of the Bank’s capital relative to the standards for well capitalized status are set forth in the following table.

The Company’s and the Bank’s CET1 capital includes total common equity reduced by goodwill and other intangible assets, net of associated deferred tax liabilities. In connection with the adoption of Basel III, the Company elected to opt out of the requirement to include most components of accumulated other comprehensive income (loss) in CET1 capital.

Tier 1 capital includes CET1 capital and additional Tier 1 capital. For the Company, additional Tier 1 capital at September 30, 2021 and December 31, 2020 included $51.0 million and $50.7 million of trust preferred securities issued by the trusts (net of investment in the trusts), respectively. The Bank did not have any additional Tier 1 capital beyond CET1 capital as of September 30, 2021 and December 31, 2020.

Total capital includes Tier 1 capital and Tier 2 capital. Tier 2 capital for both the Company and the Bank includes a permissible portion of the allowance for loan losses. In addition, Tier 2 capital at September 30, 2021 and December 31, 2020 for the Company includes $58.8 million and $58.6 million, respectively, of subordinated debentures. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under Basel III.

The following table presents actual and required capital ratios for the Company and the Bank under the Basel III rules.

	Actual				Minimum Requirement				Required to be  Well Capitalized
(In thousands)	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
September 30, 2021:
Company:
CET1 Capital to Risk-Weighted Assets	$	374,642	9.57	%	$	273,936	7.00	%	N/A		N/A
Tier 1 Capital to Risk-Weighted Assets	425,598		10.88	%	332,636		8.50	%	N/A		N/A
Total Capital to Risk-Weighted Assets	580,350		13.50	%	410,904		10.50	%	N/A		N/A
Tier 1 Capital to Average Assets	425,598		8.40	%	202,413		4.00	%	N/A		N/A
Bank:
CET1 Capital to Risk-Weighted Assets	$	420,455	10.77	%	$	273,372	7.00	%	$	253,845	6.50	%
Tier 1 Capital to Risk-Weighted Assets	420,455		10.77	%	331,951		8.50	%	312,425		8.00	%
Total Capital to Risk-Weighted Assets	464,456		11.89	%	410,058		10.50	%	390,531		10.00	%
Tier 1 Capital to Average Assets	420,455		8.32	%	202,059		4.00	%	252,574		5.00	%
December 31, 2020:
Company:
CET1 Capital to Risk-Weighted Assets	$	339,936	9.94	%	$	239,437	7.00	%	N/A		N/A
Tier 1 Capital to Risk-Weighted Assets	390,713		11.42	%	290,745		8.50	%	N/A		N/A
Total Capital to Risk-Weighted Assets	485,357		14.19	%	359,155		10.50	%	N/A		N/A
Tier 1 Capital to Average Assets	390,713		8.55	%	182,853		4.00	%	N/A		N/A
Bank:
CET1 Capital to Risk-Weighted Assets	$	387,231	11.36	%	$	238,629	7.00	%	$	221,584	6.50	%
Tier 1 Capital to Risk-Weighted Assets	387,231		11.36	%	289,763		8.50	%	272,719		8.00	%
Total Capital to Risk-Weighted Assets	423,231		12.42	%	357,943		10.50	%	340,898		10.00	%
Tier 1 Capital to Average Assets	387,231		8.49	%	182,531		4.00	%	228,164		5.00	%

The ability of the Company to pay future dividends, pay its expenses and retire its debt is dependent upon future income tax benefits and dividends paid to the Company by the Bank. The Bank is subject to dividend restrictions as imposed by Federal and state regulatory authorities.

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Fair Value

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

Financial Instruments Measured at Fair Value

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. The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Valuations within these levels are based upon:

Level 1

Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access as of the measurement date

Level 2

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 for substantially the full term of the assets or liabilities

Level 3

Unobservable inputs that are significant to the fair value of the assets or liabilities that reflect a company’s own assumptions about the assumptions that market participants would use in pricing assets or liabilities

Management monitors the availability of observable market data to assess the appropriate classification of assets and liabilities within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. There were no transfers of financial instruments between fair value levels for any period presented.

The Company used the following methods and significant assumptions to estimate fair value.

Securities - The Company utilizes an independent pricing service to advise it on the value of the securities portfolio. Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. For these investments, the inputs used by the pricing service to determine fair value may include one, or a combination of several, observable inputs such as benchmark yields, reported trades, benchmark securities, bids, offers and reference data market research publications and are classified within Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. For Level 3 securities, in addition to the inputs noted above, inputs used by the pricing service to determine fair value may also include estimated duration, municipal bond interest rate curve, and tax effected yield. There were no Level 3 securities as of September 30, 2021 or December 31, 2020. The Company’s treasury department and Asset Liability Management Committee review the aggregate fair values of the securities portfolio.

Impaired loans - Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment on a non-recurring basis. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral-dependent loans. Specific allowances for impaired loans are based on comparisons of the recorded carrying values of the loans to the present value of the estimated cash flows of these loans at each loan’s effective interest rate or the fair value of the collateral net of selling costs if the loan is collateral dependent. Impaired loans are primarily collateral dependent loans and are assessed using a fair value approach. Fair value estimates for collateral dependent loans are derived from appraised values based on the current market value or as-is value of the property being appraised. Appraisals are based on certain assumptions, which may include construction or development status and the highest and best use of the property. The appraisals are reviewed by the Company’s appraisal department to ensure they are acceptable. Impaired loans are classified within Level 3 of the fair value hierarchy. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy.

Other Real Estate Owned - Other real estate owned is initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated cost to sell. Fair value estimates begin with obtaining a current independent appraisal or internal evaluation of the collateral value. Subsequent

to foreclosure, valuations are performed periodically by the Company’s appraisal department and any subsequent reduction in value is recognized by a charge to income.

Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified appraisers whose qualifications and licenses have been reviewed by the Company. These appraisals are reviewed by a member of the Company’s appraisal department to ensure they are acceptable. Appraised values are adjusted down for costs associated with asset disposal. The significant unobservable inputs (Level 3) used in the fair value measurement of collateral for collateral impaired loans and other real estate owned are primarily based on appraisals, observable market conditions, and other factors which may affect collectability. The appraisals use marketability and comparability discounts, which generally range from 5% to 15%. Assessment of the significance of a specific input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset. It is reasonably possible that a change in the estimated fair value for assets measured using Level 3 inputs could occur in the future.

Assets and liabilities measured at fair value on a recurring basis are summarized below:

	Fair		Fair Value Measurements Using
(In thousands)	Value		Level 1		Level 2		Level 3
September 30, 2021
U.S. Government agency obligations	$	299,841	$	—	$	299,841	$	—
Residential mortgage-backed securities	121,846		—		121,846		—
Commercial mortgage-backed securities	14,894		—		14,894		—
Asset-backed securities	13,539		—		13,539		—
Corporate investments	44,150		—		44,150		—
State and political subdivisions	46,613		—		46,613		—
Total securities available for sale	$	540,883	$	—	$	540,883	$	—

December 31, 2020
U.S. Government agency obligations	$	12,434	$	—	$	12,434	$	—
Residential mortgage-backed securities	187,212		—		187,212		—
Commercial mortgage-backed securities	17,331		—		17,331		—
Asset backed securities	14,447		—		14,447		—
Corporate investments	33,148		—		33,148		—
State and political subdivisions	46,801		—		46,801		—
Total securities available for sale	$	311,373	$	—	$	311,373	$	—

Assets measured at fair value on a non-recurring basis are summarized below.

	Fair		Fair Value Measurements Using
(In thousands)	Value		Level 1		Level 2		Level 3
Impaired loans, net of allowance for loan losses:
September 30, 2021	$	44,448	$	—	$	—	$	44,448
December 31, 2020	$	42,573	$	—	$	—	$	42,573
Other real estate owned:
September 30, 2021	$	6,989	$	—	$	—	$	6,989
December 31, 2020	$	6,754	$	—	$	—	$	6,754

The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis.

	Qualitative Information about Level 3 Fair Value Measurements
(In thousands)	Carrying Value		Valuation Methods	Unobservable Inputs	Range	Weighted Average
September 30, 2021
Impaired loans, net of specific allowance	$	44,448	Third-party appraisals	Selling costs	5% - 10%	6%
Other real estate owned	$	6,989	Third-party appraisals and internal evaluations	Selling costs	5% - 10%	6%

	Qualitative Information about Level 3 Fair Value Measurements
(In thousands)	Carrying Value		Valuation Methods	Unobservable Inputs	Range	Weighted Average
December 31, 2020
Impaired loans, net of specific allowance	$	42,573	Third-party appraisals	Selling costs	5% - 10%	6%
Other real estate owned	$	6,754	Third-party appraisals and internal evaluations	Selling costs	5% - 10%	6%

Fair Value of Financial Instruments

GAAP requires disclosure of fair value information about financial instruments, whether or not recognized on the balance sheet, that are not measured and reported at fair value on a recurring or non-recurring basis. 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, 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 significantly affect the estimates and, as such, the derived fair value may not be indicative of the value negotiated in an actual sale and may not be comparable to that reported by other financial institutions. In addition, the fair value estimates are based on existing financial instruments without attempting to estimate the value of anticipated business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

The following table presents estimated fair values of the Company’s financial instruments not previously disclosed:

	September 30, 2021				December 31, 2020
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Level 1 inputs:
Cash and cash equivalents	$	695,069	$	695,069	$	637,545	$	637,545
Level 2 inputs:
Securities held to maturity	78,423		78,905		93,766		94,436
FHLB stock	2,729		2,729		2,557		2,557
Accrued interest receivable	17,120		17,120		18,061		18,061
Level 3 inputs:
Loans held for sale	13,904		13,904		28,684		28,684
Loans, net	3,482,085		3,462,588		3,342,732		3,348,872
Financial liabilities:
Level 2 inputs:
Deposits	4,529,868		4,435,783		4,152,810		4,153,402
FHLB and other borrowings	31,026		31,778		33,771		34,941
Subordinated debentures	111,411		111,411		111,124		111,124
Accrued interest payable	2,647		2,647		2,709		2,709

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Subordinated Debentures and Trust Preferred Securities

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Subordinated Debentures and Trust Preferred Securities

Subordinated Debentures and Trust Preferred Securities

On June 4, 2020, the Company entered into a Subordinated Note Purchase Agreement with certain qualified institutional buyers and institutional accredited investors pursuant to which the Company issued and sold $60.0 million in aggregate principal amount of its 6.000% Fixed-to-Floating Rate Subordinated Notes due June 15, 2030 (the “Notes”). The Company incurred issuance costs of $1.4 million in conjunction with the issuance of the Notes. These issuance costs are netted with the balance of the Notes on the Company’s Condensed Consolidated Balance Sheets and will be amortized over the life of the Notes. The Notes initially bear interest at a rate of 6.000% per annum from and including June 4, 2020, to but excluding June 15, 2025 or the early redemption date, with interest during this period payable semiannually in arrears. From and including June 15, 2025, to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an annual floating rate equal to Three-Month Term Secured Overnight Financing Rate plus 586 basis points, with interest during this period payable quarterly in arrears. The Company used the proceeds of the private placement for general corporate purposes, including improving the Company’s liquidity and capital position.

The Notes are not redeemable by the Company, in whole or in part, prior to the fifth anniversary of the original date of issue, except that the Notes may be redeemed at any time in whole but not in part in the event of a Tier 2 Capital Event, a Tax Event, or an Investment Company Event, each as defined and described in the Notes. On or after the fifth anniversary of the original date of issue, the Notes shall be redeemable on any interest payment date at the option of the Company, in whole or in part in integral multiples of $1,000, at an amount equal to 100% of the outstanding principal amount redeemed plus accrued but unpaid interest thereon. Any partial redemption will be made on a pro rata basis as to the holders of the Notes. Any redemption of the Notes is subject to any applicable regulatory requirements and approvals.

The Company also owns the outstanding common stock of business trusts that have issued preferred capital securities to third parties. These preferred capital securities have qualified as Tier 1 capital for the Company, subject to regulatory rules and limits. These trusts used the proceeds from the issuance of the common stock and the preferred capital securities to purchase subordinated debentures issued by the Company. These subordinated debentures are these trusts’ only assets, and quarterly interest payments on these subordinated debentures are the sole source of cash for these trusts to pay quarterly distributions on the common stock and preferred capital securities. The Company has fully and unconditionally guaranteed the trusts’ obligations with respect to the preferred capital securities.

The Company has the right to defer the payment of interest on the subordinated debentures at any time, or from time to time, for periods not exceeding five years. If interest payments on the subordinated debentures are deferred, the distributions on the trust preferred securities are also deferred. Interest on the subordinated debentures and distributions on the trust preferred securities are cumulative.

The following is a summary of subordinated debentures payable to statutory trusts.

(In thousands)	Year of Maturity	Interest Rate	September 30, 2021		December 31, 2020
First Bancshares of Baton Rouge Statutory Trust I	2034	3 month LIBOR, plus 2.50%	$	4,124	$	4,124
State Capital Statutory Trust IV	2035	3 month LIBOR, plus 1.99%	5,155		5,155
BancPlus Statutory Trust II	2036	3 month LIBOR, plus 1.50%	20,619		20,619
BancPlus Statutory Trust III	2037	3 month LIBOR, plus 1.35%	20,619		20,619
State Capital Master Trust	2037	3 month LIBOR, plus 1.46%	6,186		6,186
			$	56,703	$	56,703

The subordinated debentures payable to statutory trusts vary from the amount carried on the Condensed Consolidated Balance Sheets at September 30, 2021 due to the remaining purchase discount of $4.0 million, which was established upon the Merger with SCC and is being amortized over the remaining life of the debentures.

Interest rates adjust quarterly for the subordinated debentures with rates that are indexed with LIBOR. We are currently monitoring the actions of LIBOR’s regulator and the implementation of alternative reference rates in advance of the expected discontinuation of LIBOR to determine any potential impact on the subordinated debentures.

The Company has the right to redeem the subordinated debentures prior to maturity. Upon redemption of the subordinated debentures payable to a statutory trust, the trust will also liquidate its common stock and preferred capital securities.

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Employee Benefits

9 Months Ended

Sep. 30, 2021

Postemployment Benefits [Abstract]

Employee Benefits

Employee Benefits

The Company has an Employee Stock Ownership Plan (“ESOP”) that covers all employees of the Bank who are at least 21 years of age and work in a position requiring at least one thousand hours of service annually. The plan also has 401(k) provisions that allow for employee tax deferred contributions. Participants may make contributions to the ESOP in accordance with applicable regulations and the ESOP’s provisions. The Company makes a 3% “safe harbor” matching contribution, plus an additional matching contribution equal to 50% of the next 2% of an employee’s salary deferral contributions in excess of 3%. Additional contributions are made to the ESOP at the discretion of the Company’s Board of Directors.

The ESOP owned 1,500,732 and 1,499,459 shares of the Company's common stock at September 30, 2021 and December 31, 2020, respectively. The ESOP entered into loans, collateralized by ESOP shares, with the Company in connection with the repurchase of shares of Company stock that were sold by participants in accordance with diversification provisions of the ESOP. A total of 176,786 shares were repurchased through 2011, an additional 77,000 shares were repurchased under this program in 2012, and 27,594 shares were repurchased under this program in 2019. These unallocated shares are released to participants proportionately as the loan is repaid. Dividends on allocated shares are recorded as dividends and charged to retained earnings. Dividends on unallocated shares that are used to repay the loan are treated as compensation expense.

The following table presents information related to the Company’s ESOP-owned shares.

(In thousands, except share data)	September 30, 2021		December 31, 2020
Allocated shares	1,469,547		1,449,335
Unearned shares	31,185		50,124
Total ESOP shares	1,500,732		1,499,459
Fair value of unearned shares	$	2,050	$	2,569

Distributions of the ESOP may be either in cash or Company common stock. The allocated shares are subject to a put option, whereby the Company will provide a market for a specified period of time for shares distributed to participants. The put price is the appraised value of the stock. The fair value of shares of common stock held by the ESOP are deducted from permanent shareholders’ equity in the Condensed Consolidated Balance Sheets and reflected in a line item below liabilities and above shareholders’ equity. This presentation is necessary in order to recognize the put option within the ESOP-owned shares, consistent with U.S. Securities and Exchange Commission guidelines, that is present as long as the Company is not publicly traded. The Company uses a valuation by an external third party to determine the maximum possible cash obligation related to these securities. Increases or decreases in the value of the cash obligation are included in a separate line item in the Condensed Consolidated Statements of Shareholders’ Equity. The fair value of shares held by the ESOP at September 30, 2021 was $96.6 million, based on the Company’s previously disclosed appraised value of $65.75 per share of common stock. The fair value at December 31, 2020 was $74.3 million, based on the Company’s previously disclosed appraised value of $51.25 per share of common stock. As previously disclosed, these appraised values were determined solely for purposes of the ESOP’s administration and are therefore subject to certain limitations, qualifications and assumptions and may not reflect the fair value of the Company’s common stock and should not be relied on for any reason. In particular, the COVID-19 pandemic has had a significant impact on the trading markets for equity securities, including the value of equity securities of banking institutions. Neither the Company nor the ESOP has any obligation to seek an adjusted valuation, to use these appraised values for any other purpose or, if the Company or the ESOP obtains a new appraised value, to disclose such new appraised value.

State Bank Employee Stock Ownership Plan

In connection with the Company’s Merger with SCC, the State Bank & Trust Company Employee Stock Ownership Plan (“State Bank ESOP”) was amended on March 17, 2020, to be terminated effective March 31, 2020. As of March 31, 2020, all State Bank ESOP participants were fully vested in their respective account balances, no additional contributions were permitted by either the Company or the State Bank ESOP participants, and no additional participants were permitted to enter the State Bank ESOP. All shares of SCC common stock held in the State Bank ESOP were allocated to participants. The Company has no contribution obligations or compensation expense with respect to the State Bank ESOP. The Company received approval of the termination from the Internal Revenue Service (“IRS”) and all assets held by the State Bank ESOP have been distributed in accordance with its terms.

In connection with the Merger, all shares of SCC common stock held in the State Bank ESOP were converted into shares of the Company’s common stock using the exchange ratio provided for in the Merger Agreement. Distributions from the State Bank ESOP may be either in cash or Company common stock. The shares of Company common stock distributed by the State Bank ESOP were subject to a put option so long as the Company was not publicly traded and the valuation obtained for purposes of the ESOP was used to determine the put option price under the State Bank ESOP. As of September 30, 2021 and December 31, 2020, the State Bank ESOP held zero and 52,204 shares of Company common stock, respectively.

State Bank Defined Contribution Plan

On March 31, 2020, the State Bank & Trust Company 401(k) Plan (“State Bank 401(k)”) was amended to be terminated effective as of the same date in connection with the Merger. As of March 31, 2020, all State Bank 401(k) participants were fully vested in their respective account balances, no additional contributions were permitted by either the Company or the State Bank 401(k) participants, and no additional participants were permitted to enter into the State Bank 401(k). The Company has no contribution obligations or compensation expense with respect to the State Bank 401(k). The Company received approval of the termination from the IRS and has distributed all assets held by the State Bank 401(k) in accordance with its terms.

State Bank Defined Benefit Pension Plan

As a result of the Merger, the Company assumed the Mississippi Southern Bank Pension Plan (“State Bank Pension Plan”), a defined benefit pension plan which was closed to new participants and benefits were frozen effective as of December 31, 2002.

While no additional benefits accrue, the Company’s cumulative obligation is subject to adjustment due to changes in actuarial assumptions such as expected mortality and changes in interest rates. Net periodic pension costs for the quarterly period ended September 30, 2021 were not material to the Company’s Condensed Consolidated Statements of Income. The Company received approval of the termination of the State Bank Pension Plan from the IRS and plans to distribute all assets held by the State Bank Pension Plan in accordance with its terms as soon as reasonably possible.

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Equity	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Equity	EquityThe Company’s Articles of Incorporation authorize 10,000,000 shares of preferred stock with no par value, which may be issued from time to time and in one or more classes or series upon authorization of the Board of Directors. At September 30, 2021 and December 31, 2020, there were zero shares of preferred stock issued and outstanding.

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Stock Based Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock Based Compensation

Stock Based Compensation

Under the Company’s long-term incentive program, certain officers, employees and directors are eligible to receive equity-based awards under the 2018 Long-Term Incentive Plan (“LTIP”). Restricted stock awards (“RSAs”) granted under the LTIP generally vest over one to five years. Unvested RSAs are included in the Company’s common stock outstanding. Compensation expense for RSAs granted under the LTIP is recognized over the vesting period of the awards based on the fair value of the stock at the grant date, with forfeitures recognized as they occur.

Stock based compensation that has been charged against income was $1.7 million for the nine months ended September 30, 2021 and $1.1 million for same period of 2020. There were 1,830 and zero shares forfeited during the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021, there was $6.0 million of total unrecognized compensation cost related to unvested RSAs. The cost is expected to be recognized over a remaining weighted average period of 3.0 years.

A summary of the Company’s equity-based award activity and related information for the Company’s RSAs is as follows:

	Nine Months Ended
	September 30, 2021			September 30, 2020
	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Beginning of period	91,109	$	50.60	69,097	$	53.67
Granted	85,147	51.59		39,155	45.36
Vested	(33,545)	52.03		(17,143)	51.03
Forfeited	(1,830)	49.46		—	—
End of period	140,881	$	50.88	91,109	$	50.60

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Contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Contingencies

ContingenciesOn March 20, 2019, a complaint (the “Complaint”), Mills v. BankPlus, et al., Case #3:19-cv-00196-CWR-FKB, was filed in the United States District Court for the Southern District of Mississippi, Northern Division, by Alysson Mills, in her capacity as Court-appointed Receiver for Arthur Lamar Adams (“Adams”) and Madison Timber Properties, LLC (“Madison Timber”), naming the Bank, three former Bank employees, one then-current Bank employee and other defendants, including defendants affiliated and unaffiliated with the Bank (“Defendants”). The Complaint seeks to recover damages from the Defendants for the benefit of the receivership estate related to certain investors who were allegedly defrauded by Adams and Madison Timber, whose actions were allegedly attributable to the actions of the Defendants that allegedly enabled negligent, illegal or fraudulent activities engaged in by Adams and Madison Timber. A brief description of the cause of action on the cover sheet filed with the Complaint includes securities, civil conspiracy, aiding and abetting, negligence, and other possible causes of action. The amount of damages (including punitive damages) requested against the Defendants in the Complaint is unspecified. On January 4, 2021, the plaintiff, Mills, filed an Amended Complaint. Answers and/or Motions to Dismiss the Amended complaint were filed by the Defendants. On July 8, 2021, the Court denied the Motion to Dismiss filed by the Bank. A related motion for reconsideration was filed by the Bank on August 9, 2021. On September 30, 2021, an order was entered to consolidate for purposes of discovery this case (No.

3:19-cv-00196-CWR-FKB) with three other related cases filed by Mills, the Receiver. By subsequent text-only order (No. 3:18-cv-00866-CWR-FKB) dated October 10, 2021, the four consolidated cases are stayed until January 31, 2022.

In addition to the above, the Company, including subsidiaries, is party to various legal proceedings arising in the ordinary course of business. We do not believe that loss contingencies, if any, arising from pending litigation and regulatory matters will have a material adverse effect on our consolidated financial position or liquidity.

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COVID-19

9 Months Ended

Sep. 30, 2021

Unusual or Infrequent Items, or Both [Abstract]

COVID-19

COVID-19

In response to the economic impact of the COVID-19 pandemic, on March 27, 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. It contained substantial lending, tax and spending provisions, including creating and appropriating an initial $39 billion of funding to the Paycheck Protection Program (“PPP”), designed to aid small and medium-sized businesses through federally guaranteed, forgivable loans distributed by banks. On April 24, 2020, Congress enacted the Paycheck Protection Program and Healthcare Enhancement Act (the “Enhancement Act”) to, among other things, increase the available funding under the PPP by $310 billion to a total of $659 billion. The deadline for the first round of loan applications was August 8, 2020.

The Consolidated Appropriations Act, enacted on December 27, 2020, provided additional funding for the PPP of approximately $284 billion and allowed eligible borrowers, including certain borrowers who already received a PPP loan, to apply for PPP loans through March 31, 2021. Subsequently, the American Rescue Plan Act of 2021, enacted on March 11, 2021, expanded the eligibility criteria for both first and second draw PPP loans and revised the exclusions from payroll costs for purposes of loan forgiveness. The PPP Extension Act of 2021, enacted on March 30, 2021, extended the PPP through May 31, 2021.

As of September 30, 2021, 5,756 Bank PPP loans totaling $348.7 million had been forgiven and paid by the Small Business Administration or paid off by the customer. As of September 30, 2021, the Company held 1,948 loans for customers under the PPP, totaling approximately $101.0 million. The loans have maturities ranging from February 2022 to April 2028. The Company expects to recognize total fee income of approximately $5.2 million over the lives of the remaining loans.

The CARES Act and related guidance from the federal banking agencies also provide financial institutions the option to temporarily suspend requirements under GAAP related to classification of certain loan modifications as TDRs, to account for the current and anticipated effects of COVID-19. The CARES Act, as amended by the Consolidated Appropriations Act, 2021, specified that COVID-19 related loan modifications executed between March 1, 2020 and the earlier of (i) 60 days after the date of termination of the national emergency declared by the President and (ii) January 1, 2022, on loans that were current as of December 31, 2019 are not subject to TDR accounting requirements under GAAP. Additionally, under April 2020 interagency guidance from the federal banking agencies, other short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs under Accounting Standards Codification Subtopic 310-40, “Troubled Debt Restructuring by Creditors.” These modifications include short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. The federal banking agencies also have encouraged banks to work with their borrowers to modify loans as may be appropriate.

As of September 30, 2021, the Company had granted temporary modifications on 1,892 outstanding loans totaling approximately $735.0 million, or 20.8% of total outstanding loans, primarily secured by 1-4 family residences and multi-tenant retail commercial real estate. As of September 30, 2021, three loans totaling $27.2 million, or 0.8% of the Company’s loan portfolio, were still in deferment.

Economic uncertainties have arisen which may negatively affect the financial position, results of operations and cash flows of the Company. The duration of these uncertainties and ultimate financial effects cannot be reasonably estimated at this time.

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Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidation

The unaudited interim condensed consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest, and reflect all adjustments (consisting of normal recurring adjustments) that are necessary in the opinion of the Company’s management to fairly present the financial position, results of operations and cash flows of the Company. They have been derived from the audited consolidated financial statements for the fiscal year ended December 31, 2020; however, certain notes and information have been omitted from the interim periods. Therefore, these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2020. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The accounting and financial reporting policies followed by the Company conform, in all material respects, to the accounting principles generally accepted in the United States (“GAAP”) and to general practices within the financial services industry. The results of operations for the interim periods are not necessarily indicative of the results to be expected for future interim periods or for the entire year.

Basis of accounting

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Particularly given the effects of the COVID-19 pandemic, the allowance for loan losses, provision for loan losses, the fair value of financial instruments and the status of contingencies are particularly subject to change. Material estimates that are subject to significant change in the near term are the allowance for loan losses, provision for loan losses, valuation of other real estate owned and fair values of financial instruments. Actual results could differ from these estimates.

Recently Issued But Not Yet Effective Accounting Standards

Recently Issued But Not Yet Effective Accounting Standards

Accounting Standards Update 2016-13 (“ASU 2016-13”), “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, which requires earlier measurement of credit losses and enhances disclosures. The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses over the life of the loan. ASU 2016-13 was originally effective for the Company for annual and interim periods beginning on January 1, 2021. Subsequently, FASB approved a deferral of the effective date. ASU 2016-13 will now be effective for the Company for annual and interim periods beginning on January 1, 2023. The Company has formed a cross functional team that is assessing data and system needs and evaluating the impact of adopting the new guidance. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the Company adopts the new standard, but has not yet determined the magnitude of the one-time adjustment or the overall impact on the Company’s consolidated financial statements.

Accounting Standards Update 2020-04 (“ASU 2020-04”), “Reference Rate Reform - Topic 848.” In March 2020, the FASB issued ASU 2020-04, which provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications, hedge accounting, and other transactions affected that reference the London Inter-Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. ASU 2020-04 is effective upon issuance and can be applied through December 31, 2022. The company is still evaluating the impact of ASU 2020-04, but does not expect it to have a material impact on the Company’s consolidated financial statements.

Allowance for Loan Losses

Loans are stated at the amount of unpaid principal, before allowance for loan losses. Interest on loans is calculated using the simple interest method on daily balances of the principal amount outstanding.

Loan Origination/Risk Management/Credit Concentration - The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. The Company’s Board of Directors reviews and approves these policies and procedures on a regular basis. Although the Company has a diversified loan portfolio, the Company has concentrations of credit risks related to the real estate market, including residential, commercial, and construction and land development lending. Most of the Company’s lending activity occurs within Mississippi, Louisiana, and Alabama.

The risk characteristics of the Company’s material portfolio segments are as follows:

Residential Real Estate Loans - The residential real estate loan portfolio consists of residential loans for single and multifamily properties. Residential loans are generally secured by owner occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can be impacted by economic conditions within their market area. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

Commercial Real Estate Loans - Commercial real estate loans include construction and land development loans, loans secured by farmland and other commercial real estate loans.

Construction and land development loans are usually based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are considered to be higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing.

Farmland loans are generally made for the purpose of acquiring land devoted to crop production or livestock, the propagation of timber or the operation of a similar type of business on the secured property. Sources of repayment for these loans generally include income generated from operations of a business on the property, rental income, or sales of timber. Repayment may be impacted by changes in economic conditions which affect underlying collateral values.

Commercial real estate loans typically involve larger principal amounts and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria.

Commercial and Industrial Loans - The commercial and industrial loan portfolio consists of loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchase or other expansion projects. Commercial loan underwriting standards are designed to promote relationship banking rather than transactional banking and are underwritten based on the borrower’s expected ability to profitably operate its business. The cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value. Most commercial loans are secured by assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. In the case of loans secured by accounts receivable, the availability of funds for repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.

Consumer and Other Loans - The consumer and other loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes.  Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose.  Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s market area) and the creditworthiness of a borrower.

Loans that are 30 days or more past due based on payments received and applied to the loan are considered delinquent. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions and collection efforts, that a borrower's financial condition is such that collection of interest, but not necessarily principal, is doubtful. A loan is typically placed on non-accrual when the contractual payment of principal or interest becomes 90 days past due unless the loan is well-secured and in the process of collection. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. Current year interest previously recorded, but deemed not collectible, is reversed and charged against current year income. Prior year interest previously recorded, but deemed not collectible, is charged against the allowance.

Payments subsequently received on non-accrual loans are applied to principal. Interest income is recognized to the extent that cash payments are received in excess of principal due. A loan may return to accrual status when principal and interest payments are no longer past due and collectability is reasonably assured.

Impaired Loans - Impaired loans include nonperforming loans, loans modified in troubled debt restructurings (“TDRs”) where concessions have been granted to borrowers experiencing financial difficulties, and certain other loans identified by management. Certain other loans identified by management consist of performing loans with specific allocations of the allowance for loan loss. Impaired loans, or portions thereof, are charged-off when deemed uncollectible.Allowance for Loan LossesAs management evaluates the allowance for loan losses, it is categorized as follows: (1) specific allocations; (2) allocations for classified assets with no specific allowance, based on historical loan experience for similar loans with similar characteristics, adjusted as necessary, to reflect the impact of current conditions; and (3) general allocations for each major loan category for loans not deemed impaired or classified, segmented by loan class based on historical loss experience and other risk factors. In assessing general economic conditions, management monitors several factors, including regional and national economic conditions, real estate market conditions and recently enacted regulations with potential economic effects.

Credit Quality Indicators – The Company utilizes a risk grading matrix to assign a grade to each of its commercial and real estate loans. Loans are rated on a scale of 1 to 10. A description of the general characteristics of the 10 risk ratings is as follows:

•Risk Grades 1, 2, 3, 4 and 5 – These grades include loans to borrowers of solid credit quality with no higher than normal risk of loss. Borrowers in these categories have satisfactory financial strength and adequate cash flow coverage to service debt requirements. Collateral type and quality, as well as protection, are adequate. The borrower’s management is strong and capable, financial information is timely and accurate, and guarantor support is strong.

•Risk Grade 6 – Pass and Watch – Loans in this category are currently protected, but risks are emerging that warrant more than normal attention and have above average risk of loss. These factors require a higher level of monitoring and may include emerging balance sheet weaknesses, strained liquidity, increased leverage ratio, and weakening management. Collateral support is less marketable or limited use and, although the protection is sufficient, the loan-to-value ratio may not meet policy guidelines. Guarantors may have a limited ability and willingness to provide intermediate support. Also, considerations surrounding industry deterioration, increased competition and minor policy exceptions concerning structure or amortization may affect the rating of these loans.

•Risk Grade 7 – Special Mention – The Company’s special mention rating is intended to closely align with the regulatory definition. A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of repayment prospects. These weaknesses may include deteriorating balance sheets, strained liquidity and elevated leverage ratios. Cash flow and profitability are marginally sufficient to service debt and collateral is exhibiting signs of decline in value; however, protection is currently sufficient. Limited management experience or weaknesses have emerged requiring more than normal supervision and uncertainties regarding the quality of the financials are not explained. Guarantor has very limited ability and willingness to provide short-term support. Moderate policy exceptions concerning structure or amortization may be considered in order to provide relief to the borrower. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

•Risk Grade 8 – Substandard – A loan in this category is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. Factors affecting these loans may include balance sheet deterioration that has resulted in illiquid, highly leveraged or deficit net worth, cash flow that is not able to service debts as structured, collateral protection that may be inadequate, guarantor support that may be virtually non-existent, and management that is poor. Loans may require a major policy exception concerning structure or amortization. They are characterized by the distinct possibility that the Company will incur some loss if the deficiencies are not corrected.

•Risk Grade 9 – Doubtful – Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable.

•Risk Grade 10 – Loss – Loans are considered uncollectible and of such little value that continuing to carry them as an active asset is not warranted. It does not mean that there will be no recovery, but, rather, it is not practical or desirable to defer writing off these assets even though a partial recovery may be possible in the future.

Classified loans for the Company include loans in Risk Grades 8, 9 and 10. Loans may be classified but not considered impaired, due to one of the following reasons: (i) the loan falls below the established minimum dollar thresholds for loan impairment testing or (ii) the loan was tested for impairment, but not deemed to be impaired.

Financial Instruments Measured at Fair Value

Financial Instruments Measured at Fair Value

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. The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Valuations within these levels are based upon:

Level 1

Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access as of the measurement date

Level 2

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 for substantially the full term of the assets or liabilities

Level 3

Unobservable inputs that are significant to the fair value of the assets or liabilities that reflect a company’s own assumptions about the assumptions that market participants would use in pricing assets or liabilities

Management monitors the availability of observable market data to assess the appropriate classification of assets and liabilities within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. There were no transfers of financial instruments between fair value levels for any period presented.

The Company used the following methods and significant assumptions to estimate fair value.

Securities - The Company utilizes an independent pricing service to advise it on the value of the securities portfolio. Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. For these investments, the inputs used by the pricing service to determine fair value may include one, or a combination of several, observable inputs such as benchmark yields, reported trades, benchmark securities, bids, offers and reference data market research publications and are classified within Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. For Level 3 securities, in addition to the inputs noted above, inputs used by the pricing service to determine fair value may also include estimated duration, municipal bond interest rate curve, and tax effected yield. There were no Level 3 securities as of September 30, 2021 or December 31, 2020. The Company’s treasury department and Asset Liability Management Committee review the aggregate fair values of the securities portfolio.

Impaired loans - Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment on a non-recurring basis. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral-dependent loans. Specific allowances for impaired loans are based on comparisons of the recorded carrying values of the loans to the present value of the estimated cash flows of these loans at each loan’s effective interest rate or the fair value of the collateral net of selling costs if the loan is collateral dependent. Impaired loans are primarily collateral dependent loans and are assessed using a fair value approach. Fair value estimates for collateral dependent loans are derived from appraised values based on the current market value or as-is value of the property being appraised. Appraisals are based on certain assumptions, which may include construction or development status and the highest and best use of the property. The appraisals are reviewed by the Company’s appraisal department to ensure they are acceptable. Impaired loans are classified within Level 3 of the fair value hierarchy. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy.

Other Real Estate Owned - Other real estate owned is initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated cost to sell. Fair value estimates begin with obtaining a current independent appraisal or internal evaluation of the collateral value. Subsequent

to foreclosure, valuations are performed periodically by the Company’s appraisal department and any subsequent reduction in value is recognized by a charge to income.

Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified appraisers whose qualifications and licenses have been reviewed by the Company. These appraisals are reviewed by a member of the Company’s appraisal department to ensure they are acceptable. Appraised values are adjusted down for costs associated with asset disposal. The significant unobservable inputs (Level 3) used in the fair value measurement of collateral for collateral impaired loans and other real estate owned are primarily based on appraisals, observable market conditions, and other factors which may affect collectability. The appraisals use marketability and comparability discounts, which generally range from 5% to 15%. Assessment of the significance of a specific input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset. It is reasonably possible that a change in the estimated fair value for assets measured using Level 3 inputs could occur in the future.

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Schedule of earnings per share

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands except per share data)	2021		2020		2021		2020
Net income	$	14,197	$	12,600	$	45,533	$	27,515
Weighted average common shares outstanding	9,934		10,070		9,936		9,231
Diluted effect of unallocated stock	116		64		105		72
Diluted common shares	10,050		10,134		10,041		9,303
Basic earnings per common share	$	1.43	$	1.25	$	4.58	$	2.98
Diluted earnings per common share	$	1.41	$	1.24	$	4.53	$	2.96

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Business Combination (Tables)

9 Months Ended

Sep. 30, 2021

Business Combination and Asset Acquisition [Abstract]

Consideration paid and preliminary fair value allocation

The following table reflects the consideration paid and the fair value allocation of assets acquired and liabilities assumed as of the acquisition date:

(In thousands)
Purchase price allocation:
Common stock issued			$	71,161
Cash paid for fractional shares			12
Total purchase price			$	71,173
Assets acquired:
Cash and due from banks	$	75,315
Securities, Federal Home Loan Bank (“FHLB”) stock and First National Bankers Bankshares, Inc. stock	97,910
Loans, net	880,390
Premises and equipment	29,968
Accrued interest receivable	3,664
Bank-owned life insurance	28,441
Core deposit intangible	6,045
Taxes receivable	7,787
Deferred tax asset, net	5,972
Other assets	3,330
Total assets acquired	$	1,138,822
Liabilities assumed:
Deposits	$	1,024,381
Advances from FHLB and other borrowings	14,563
Subordinated debentures	11,121
Deferred compensation	10,310
Other liabilities	6,196
Total liabilities assumed	$	1,066,571
Net assets acquired			72,251
Excess of fair value of net assets acquired over consideration paid - Gain on bargain purchase			$	(1,078)

Unaudited pro forma information

The following table presents unaudited pro forma information as if the Merger with SCC had occurred on January 1, 2020. This pro forma information combines the historic condensed consolidated results of operations of BancPlus and SCC after giving effect to certain adjustments, including purchase accounting fair value adjustments and amortization of intangibles, as well as the related income tax effects of those adjustments. The pro forma information does not necessarily reflect the results of operations that would have occurred had the Merger occurred on January 1, 2020.

	Three Months Ended		Nine Months Ended
(In thousands, except per share data)	September 30, 2020		September 30, 2020
Net interest income	$	43,828	$	123,958
Other operating income	18,626		47,034
Net income available to common shareholders	13,993		27,539
Earnings per common share:
Basic	$	1.39	$	2.74
Diluted	1.38		2.72

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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Summary of the amortized cost and fair value of securities available for sale

The following is a summary of the amortized cost and fair value of securities available for sale.

	Amortized		Gross Unrealized				Fair
(In thousands)	Cost		Gains		Losses		Value
September 30, 2021:
U.S. Government agency obligations	$	301,619	$	421	$	2,199	$	299,841
Residential mortgage-backed securities	118,554		3,522		230		121,846
Commercial mortgage-backed securities	14,764		146		16		14,894
Asset-backed securities	13,068		506		35		13,539
Corporate investments	43,000		1,210		60		44,150
State and political subdivisions	45,422		1,310		119		46,613
Total available for sale	$	536,427	$	7,115	$	2,659	$	540,883
December 31, 2020:
U.S. Government agency obligations	$	12,092	$	342	$	—	$	12,434
Residential mortgage-backed securities	181,569		5,644		1		187,212
Commercial mortgage-backed securities	16,793		538		—		17,331
Asset backed securities	13,990		543		86		14,447
Corporate investments	32,750		420		22		33,148
State and political subdivisions	45,025		1,833		57		46,801
Total available for sale	$	302,219	$	9,320	$	166	$	311,373

Summary of the amortized cost and fair value of securities held to maturity

The following is a summary of the amortized cost and fair value of securities held to maturity.

	Amortized		Gross Unrealized				Fair
(In thousands)	Cost		Gains		Losses		Value
September 30, 2021:
States and political subdivisions	$	78,423	$	482	$	—	$	78,905
Total held to maturity	$	78,423	$	482	$	—	$	78,905
December 31, 2020:
States and political subdivisions	$	93,766	$	670	$	—	$	94,436
Total held to maturity	$	93,766	$	670	$	—	$	94,436

Summary of investment securities that were in an unrealized loss position

Provided below is a summary of investment securities that were in an unrealized loss position and the length of time that individual securities have been in a continuous loss position.

	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value	Unrealized Losses
(In thousands)
September 30, 2021:
Available for sale:
U.S. Government agencies	$	255,063	$	2,199	$	—	$	—	255,063	$	2,199
Residential mortgage-backed securities	12,031		230		—		—		12,031	230
Commercial mortgage-backed securities	3,174		16		—		—		3,174	16
Asset backed securities	—		—		2,271		35		2,271	35
Corporate investments	6,941		60		—		—		6,941	60
States and political subdivisions	5,636		119		—		—		5,636	119
	$	282,845	$	2,624	$	2,271	$	35	285,116	$	2,659
December 31, 2020:
Available for sale:
Residential mortgage-backed securities	$	4,471	$	1	$	—	$	—	4,471	$	1
Commercial mortgage-backed securities	305		—		—		—		305	—
Asset backed securities	2,492		86		—		—		2,492	86
Corporate investments	9,229		22		—		—		9,229	22
States and political subdivisions	3,028		57		—		—		3,028	57
	$	19,525	$	166	$	—	$	—	19,525	$	166

Schedule of investments classified by contractual maturity date

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

	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
(In thousands)	Cost		Value		Cost		Value
September 30, 2021:
One year or less	$	11,330	$	11,402	$	12,437	$	12,455
After one through five years	179,898		179,041		46,344		46,558
After five through ten years	204,514		205,651		16,887		17,137
After ten years	140,685		144,789		2,755		2,755
	$	536,427	$	540,883	$	78,423	$	78,905

Summary of the amortized cost and fair value for investment securities which were pledged to secure public deposits and for other purposes

The following is a summary of the amortized cost and fair value for investment securities which were pledged to secure public deposits and for other purposes required or permitted by law.

	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
(In thousands)	Cost		Value		Cost		Value
September 30, 2021	$	441,300	$	444,560	$	44,697	$	45,144
December 31, 2020	$	251,913	$	260,351	$	57,110	$	57,770

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Loans (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Summary of the Company’s loan portfolio by loan class

The following is a summary of the Company’s loan portfolio by loan class.

(In thousands)	September 30, 2021		December 31, 2020
Secured by real estate:
Residential properties	$	773,928	$	738,340
Construction and land development	465,564		403,496
Farmland	212,645		217,104
Other commercial	1,339,214		1,224,633
Total real estate	2,791,351		2,583,573
Commercial and industrial loans	534,160		635,714
Agricultural production and other loans to farmers	101,973		85,469
Consumer and other loans	98,602		73,976
Total loans before allowance for loan losses	$	3,526,086	$	3,378,732

Summary of the recorded investment in non-accrual loans, segregated by class

The following table presents the recorded investment in nonaccrual loans, segregated by class.

(In thousands)	September 30, 2021		December 31, 2020
Secured by real estate:
Residential properties	$	3,318	$	3,869
Construction and land development	58		1,863
Farmland	1,893		158
Other commercial	2,324		7,947
Total real estate	7,593		13,837
Commercial and industrial loans	106		12
Agricultural production and other loans to farmers	135		85
Consumer and other loans	210		177
Total nonaccrual loans	$	8,044	$	14,111

Summary of age analysis of past due loans

An age analysis of past due loans (including both accruing and non-accruing loans) segregated by class of loans is as follows:

(In thousands)	Past Due 30-89 Days		Past Due 90 Days or More		Total Past Due		Current		Total Loans		Past Due 90 Days or More and Accruing
September 30, 2021
Secured by real estate:
Residential properties	$	5,427	$	2,008	$	7,435	$	766,493	$	773,928	$	696
Construction and land development	307		1,331		1,638		463,926		465,564		1,331
Farmland	189		515		704		211,941		212,645		46
Other commercial	4,037		317		4,354		1,334,860		1,339,214		14
Total real estate	9,960		4,171		14,131		2,777,220		2,791,351		2,087
Commercial and industrial loans	1,144		192		1,336		532,824		534,160		94
Agricultural production and other loans to farmers	23		226		249		101,724		101,973		94
Consumer loans	338		234		572		98,030		98,602		24
Total	$	11,465	$	4,823	$	16,288	$	3,509,798	$	3,526,086	$	2,299

(In thousands)	Past Due 30-89 Days		Past Due 90 Days or More		Total Past Due		Current		Total Loans		Past Due 90 Days or More and Accruing
December 31, 2020
Secured by real estate:
Residential properties	$	5,836	$	2,016	$	7,852	$	730,488	$	738,340	$	1,174
Construction and land development	713		3,086		3,799		399,697		403,496		1,843
Farmland	373		779		1,152		215,952		217,104		618
Other commercial	3,956		3,084		7,040		1,217,593		1,224,633		2,417
Total real estate	10,878		8,965		19,843		2,563,730		2,583,573		6,052
Commercial and industrial loans	2,195		135		2,330		633,384		635,714		135
Agricultural production and other loans to farmers	319		15		334		85,135		85,469		15
Consumer loans	444		278		722		73,254		73,976		101
Total	$	13,836	$	9,393	$	23,229	$	3,355,503	$	3,378,732	$	6,303

Summary of impaired loans

Impaired loans, segregated by class were as follows:

	September 30, 2021
	Principal		Recorded		Related
(In thousands)	Balance		Balance (1)		Allowance
Impaired loans with no related allowance:
Secured by real estate:
Residential properties	$	7,666	$	5,099	$	—
Construction and land development	3,669		1,656		—
Farmland	11,994		11,439		—
Other commercial	4,015		2,448		—
Total real estate	27,344		20,642		—
Commercial and industrial	19,723		19,393		—
Agricultural production and other loans to farmers	289		147		—
Consumer and other loans	236		210		—
Total	$	47,592	$	40,392	$	—
Impaired loans with related allowance:
Secured by real estate:
Residential properties	$	1,060	$	1,060	$	9
Construction and land development	—		—		—
Farmland	—		—		—
Other commercial	1,948		1,948		276
Total real estate	3,008		3,008		285
Commercial and industrial	2,324		2,324		991
Agricultural production and other loans to farmers	—		—		—
Consumer and other loans	—		—		—
Total	5,332		5,332		1,276
Total impaired loans	$	52,924	$	45,724	$	1,276

(1) Recorded balance represents the carrying value – the contractual principal obligation due from the customer less charge offs and payments applied.    

	December 31, 2020
	Principal		Recorded		Related
(In thousands)	Balance		Balance (1)		Allowance
Impaired loans with no related allowance:
Secured by real estate:
Residential properties	$	8,474	$	5,795	$	—
Construction and land development	5,530		3,462		—
Farmland	11,024		10,584		—
Other commercial	8,439		5,149		—
Total real estate	33,467		24,990		—
Commercial and industrial	10,386		9,962		—
Agricultural production and other loans to farmers	156		97		—
Consumer and other loans	216		177		—
Total	$	44,225	$	35,226	$	—
Impaired loans with related allowance:
Secured by real estate:
Residential properties	$	1,073	$	1,073	$	9
Construction and land development	—		—		—
Farmland	—		—		—
Other commercial	6,072		6,039		2,028
Total real estate	7,145		7,112		2,037
Commercial and industrial	4,430		4,430		2,158
Agricultural production and other loans to farmers	—		—		—
Consumer and other loans	—		—		—
Total	11,575		11,542		4,195
Total impaired loans	$	55,800	$	46,768	$	4,195

(1)Recorded balance represents the carrying value – the contractual principal obligation due from the customer less charge-offs and payments applied.

The average recorded investment and interest recognized for impaired loans for the three and nine months ended September 30, 2021 and 2020 are presented below.

	Three Months Ended September 30,
	2021				2020
	Average		Interest		Average		Interest
(In thousands)	Investment		Recognized		Investment		Recognized
Secured by real estate:
Residential properties	$	6,123	$	42	$	6,934	$	38
Construction and land development	1,139		23		2,026		31
Farmland	11,150		104		10,515		127
Other commercial	5,046		14		12,389		61
Total real estate	23,458		183		31,864		257
Commercial and industrial	21,728		281		1,133		7
Agricultural production and other loans to farmers	146		3		97		—
Consumer loans	210		—		180		—
Total	$	45,542	$	467	$	33,274	$	264

	Nine Months Ended September 30,
	2021				2020
	Average		Interest		Average		Interest
(In thousands)	Investment		Recognized		Investment		Recognized
Secured by real estate:
Residential properties	$	6,489	$	106	$	5,773	$	114
Construction and land development	2,107		80		2,013		96
Farmland	10,452		356		10,517		382
Other commercial	6,827		129		11,876		176
Total real estate	25,875		671		30,179		768
Commercial and industrial	20,076		753		689		20
Agricultural production and other loans to farmers	94		3		78		—
Consumer loans	191		—		182		—
Total	$	46,236	$	1,427	$	31,128	$	788

The following table provides the recorded investment in loans, net of unearned income, based on the Company’s impairment methodology as of the dates presented:

(In thousands)	Commercial and Industrial		Commercial Real Estate		Residential		Consumer and other		Total
September 30, 2021
Individually evaluated for impairment	$	21,611	$	14,046	$	2,369	$	174	$	38,200
Collectively evaluated for impairment	512,549		2,003,377		771,559		200,401		3,487,886
Ending balance	$	534,160	$	2,017,423	$	773,928	$	200,575	$	3,526,086
December 31, 2020
Individually evaluated for impairment	$	14,392	$	25,234	$	6,868	$	274	$	46,768
Collectively evaluated for impairment	621,322		1,819,999		731,472		159,171		3,331,964
Ending balance	$	635,714	$	1,845,233	$	738,340	$	159,445	$	3,378,732

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Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Summary of the credit quality of the Company’s loan portfolio by loan class

The following table summarizes the credit quality of the Company’s loan portfolio by loan class for the period indicated:

	Risk Grades		Risk Grade		Risk Grade		Risk Grade
(In thousands)	1-6		7		8		9		Total
September 30, 2021
Secured by real estate:
Residential properties	$	759,167	$	21	$	14,740	$	—	$	773,928
Construction and land development	460,712		4,107		745		—		465,564
Farmland	199,608		—		13,037		—		212,645
Other commercial	1,330,515		1,001		7,621		77		1,339,214
Total real estate	2,750,002		5,129		36,143		77		2,791,351
Commercial and industrial	510,359		—		23,756		45		534,160
Agricultural production and other loans to farmers	101,549		71		353		—		101,973
Consumer and other loans	98,302		—		300		—		98,602
Total	$	3,460,212	$	5,200	$	60,552	$	122	$	3,526,086

	Risk Grades		Risk Grade		Risk Grade		Risk Grade
(In thousands)	1-6		7		8		9		Total
December 31, 2020
Secured by real estate:
Residential properties	$	721,024	$	—	$	17,316	$	—	$	738,340
Construction and land development	401,347		—		2,149		—		403,496
Farmland	205,211		—		11,893		—		217,104
Other commercial	1,209,365		—		15,041		227		1,224,633
Total real estate	2,536,947		—		46,399		227		2,583,573
Commercial and industrial	619,086		51		16,526		51		635,714
Agricultural production and other loans to farmers	85,197		91		181		—		85,469
Consumer and other loans	73,560		—		416		—		73,976
Total	$	3,314,790	$	142	$	63,522	$	278	$	3,378,732

Summary of allowance for loan losses and balances in the loan portfolio by loan segment

Transactions in the allowance for loan losses and balances in the loan portfolio by loan segment are as follows:

(In thousands)	Commercial and Industrial		Commercial Real Estate		Residential		Consumer and other		Total
Three Months Ended September 30, 2021
Allowance for loan losses:
Beginning balance	$	6,493	$	23,051	$	10,234	$	2,226	$	42,004
Provision for loan losses	(565)		616		352		1,066		1,469
Recoveries on loans	175		1,625		59		449		2,308
Loans charged off	(37)		(349)		(122)		(1,272)		(1,780)
Ending balance	$	6,066	$	24,943	$	10,523	$	2,469	$	44,001
Nine Months Ended September 30, 2021
Allowance for loan losses:
Beginning balance	$	6,337	$	20,163	$	7,900	$	1,600	$	36,000
Provision for loan losses	(433)		3,481		2,581		1,766		7,395
Recoveries on loans	479		2,277		340		2,046		5,142
Loans charged off	(317)		(978)		(298)		(2,943)		(4,536)
Ending balance	$	6,066	$	24,943	$	10,523	$	2,469	$	44,001
Period End Allowance Balance Allocated To:
Individually evaluated for impairment	$	991	$	276	$	9	$	—	$	1,276
Collectively evaluated for impairment	5,075		24,667		10,514		2,469		42,725
Ending balance	$	6,066	$	24,943	$	10,523	$	2,469	$	44,001

(In thousands)	Commercial and Industrial		Commercial Real Estate		Residential		Consumer and other		Unallocated		Total
Three Months Ended September 30, 2020
Allowance for loan losses:
Beginning balance	$	3,269	$	12,580	$	5,968	$	1,340	$	902	$	24,059
Provision for loan losses	2,812		1,835		170		(82)		(64)		4,671
Recoveries on loans	34		103		140		827		—		1,104
Loans charged off	(261)		(1,960)		(34)		(731)		—		(2,986)
Balance, end of year	$	5,854	$	12,558	$	6,244	$	1,354	$	838	$	26,848
Nine Months Ended September 30, 2020
Allowance for loan losses:
Beginning balance	$	2,773	$	10,766	$	5,568	$	1,135	$	1,258	$	21,500
Provision for loan losses	3,427		3,824		707		168		(420)		7,706
Recoveries on loans	148		150		237		2,619		—		3,154
Loans charged off	(494)		(2,182)		(268)		(2,568)		—		(5,512)
Ending balance	$	5,854	$	12,558	$	6,244	$	1,354	$	838	$	26,848
Period End Allowance Balance Allocated To:
Individually evaluated for impairment	$	471	$	1,949	$	17	$	—	$	—	$	2,437
Collectively evaluated for impairment	5,383		10,609		6,227		1,354		838		24,411
Ending balance	$	5,854	$	12,558	$	6,244	$	1,354	$	838	$	26,848

Summary of impaired loans

Impaired loans, segregated by class were as follows:

	September 30, 2021
	Principal		Recorded		Related
(In thousands)	Balance		Balance (1)		Allowance
Impaired loans with no related allowance:
Secured by real estate:
Residential properties	$	7,666	$	5,099	$	—
Construction and land development	3,669		1,656		—
Farmland	11,994		11,439		—
Other commercial	4,015		2,448		—
Total real estate	27,344		20,642		—
Commercial and industrial	19,723		19,393		—
Agricultural production and other loans to farmers	289		147		—
Consumer and other loans	236		210		—
Total	$	47,592	$	40,392	$	—
Impaired loans with related allowance:
Secured by real estate:
Residential properties	$	1,060	$	1,060	$	9
Construction and land development	—		—		—
Farmland	—		—		—
Other commercial	1,948		1,948		276
Total real estate	3,008		3,008		285
Commercial and industrial	2,324		2,324		991
Agricultural production and other loans to farmers	—		—		—
Consumer and other loans	—		—		—
Total	5,332		5,332		1,276
Total impaired loans	$	52,924	$	45,724	$	1,276

(1) Recorded balance represents the carrying value – the contractual principal obligation due from the customer less charge offs and payments applied.    

	December 31, 2020
	Principal		Recorded		Related
(In thousands)	Balance		Balance (1)		Allowance
Impaired loans with no related allowance:
Secured by real estate:
Residential properties	$	8,474	$	5,795	$	—
Construction and land development	5,530		3,462		—
Farmland	11,024		10,584		—
Other commercial	8,439		5,149		—
Total real estate	33,467		24,990		—
Commercial and industrial	10,386		9,962		—
Agricultural production and other loans to farmers	156		97		—
Consumer and other loans	216		177		—
Total	$	44,225	$	35,226	$	—
Impaired loans with related allowance:
Secured by real estate:
Residential properties	$	1,073	$	1,073	$	9
Construction and land development	—		—		—
Farmland	—		—		—
Other commercial	6,072		6,039		2,028
Total real estate	7,145		7,112		2,037
Commercial and industrial	4,430		4,430		2,158
Agricultural production and other loans to farmers	—		—		—
Consumer and other loans	—		—		—
Total	11,575		11,542		4,195
Total impaired loans	$	55,800	$	46,768	$	4,195

(1)Recorded balance represents the carrying value – the contractual principal obligation due from the customer less charge-offs and payments applied.

The average recorded investment and interest recognized for impaired loans for the three and nine months ended September 30, 2021 and 2020 are presented below.

	Three Months Ended September 30,
	2021				2020
	Average		Interest		Average		Interest
(In thousands)	Investment		Recognized		Investment		Recognized
Secured by real estate:
Residential properties	$	6,123	$	42	$	6,934	$	38
Construction and land development	1,139		23		2,026		31
Farmland	11,150		104		10,515		127
Other commercial	5,046		14		12,389		61
Total real estate	23,458		183		31,864		257
Commercial and industrial	21,728		281		1,133		7
Agricultural production and other loans to farmers	146		3		97		—
Consumer loans	210		—		180		—
Total	$	45,542	$	467	$	33,274	$	264

	Nine Months Ended September 30,
	2021				2020
	Average		Interest		Average		Interest
(In thousands)	Investment		Recognized		Investment		Recognized
Secured by real estate:
Residential properties	$	6,489	$	106	$	5,773	$	114
Construction and land development	2,107		80		2,013		96
Farmland	10,452		356		10,517		382
Other commercial	6,827		129		11,876		176
Total real estate	25,875		671		30,179		768
Commercial and industrial	20,076		753		689		20
Agricultural production and other loans to farmers	94		3		78		—
Consumer loans	191		—		182		—
Total	$	46,236	$	1,427	$	31,128	$	788

The following table provides the recorded investment in loans, net of unearned income, based on the Company’s impairment methodology as of the dates presented:

(In thousands)	Commercial and Industrial		Commercial Real Estate		Residential		Consumer and other		Total
September 30, 2021
Individually evaluated for impairment	$	21,611	$	14,046	$	2,369	$	174	$	38,200
Collectively evaluated for impairment	512,549		2,003,377		771,559		200,401		3,487,886
Ending balance	$	534,160	$	2,017,423	$	773,928	$	200,575	$	3,526,086
December 31, 2020
Individually evaluated for impairment	$	14,392	$	25,234	$	6,868	$	274	$	46,768
Collectively evaluated for impairment	621,322		1,819,999		731,472		159,171		3,331,964
Ending balance	$	635,714	$	1,845,233	$	738,340	$	159,445	$	3,378,732

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Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 2021

Regulatory Matters [Abstract]

Schedule of actual and required capital ratios

The following table presents actual and required capital ratios for the Company and the Bank under the Basel III rules.

	Actual				Minimum Requirement				Required to be  Well Capitalized
(In thousands)	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio
September 30, 2021:
Company:
CET1 Capital to Risk-Weighted Assets	$	374,642	9.57	%	$	273,936	7.00	%	N/A		N/A
Tier 1 Capital to Risk-Weighted Assets	425,598		10.88	%	332,636		8.50	%	N/A		N/A
Total Capital to Risk-Weighted Assets	580,350		13.50	%	410,904		10.50	%	N/A		N/A
Tier 1 Capital to Average Assets	425,598		8.40	%	202,413		4.00	%	N/A		N/A
Bank:
CET1 Capital to Risk-Weighted Assets	$	420,455	10.77	%	$	273,372	7.00	%	$	253,845	6.50	%
Tier 1 Capital to Risk-Weighted Assets	420,455		10.77	%	331,951		8.50	%	312,425		8.00	%
Total Capital to Risk-Weighted Assets	464,456		11.89	%	410,058		10.50	%	390,531		10.00	%
Tier 1 Capital to Average Assets	420,455		8.32	%	202,059		4.00	%	252,574		5.00	%
December 31, 2020:
Company:
CET1 Capital to Risk-Weighted Assets	$	339,936	9.94	%	$	239,437	7.00	%	N/A		N/A
Tier 1 Capital to Risk-Weighted Assets	390,713		11.42	%	290,745		8.50	%	N/A		N/A
Total Capital to Risk-Weighted Assets	485,357		14.19	%	359,155		10.50	%	N/A		N/A
Tier 1 Capital to Average Assets	390,713		8.55	%	182,853		4.00	%	N/A		N/A
Bank:
CET1 Capital to Risk-Weighted Assets	$	387,231	11.36	%	$	238,629	7.00	%	$	221,584	6.50	%
Tier 1 Capital to Risk-Weighted Assets	387,231		11.36	%	289,763		8.50	%	272,719		8.00	%
Total Capital to Risk-Weighted Assets	423,231		12.42	%	357,943		10.50	%	340,898		10.00	%
Tier 1 Capital to Average Assets	387,231		8.49	%	182,531		4.00	%	228,164		5.00	%

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Fair Value (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule assets and liabilities measured on recurring basis

Assets and liabilities measured at fair value on a recurring basis are summarized below:

	Fair		Fair Value Measurements Using
(In thousands)	Value		Level 1		Level 2		Level 3
September 30, 2021
U.S. Government agency obligations	$	299,841	$	—	$	299,841	$	—
Residential mortgage-backed securities	121,846		—		121,846		—
Commercial mortgage-backed securities	14,894		—		14,894		—
Asset-backed securities	13,539		—		13,539		—
Corporate investments	44,150		—		44,150		—
State and political subdivisions	46,613		—		46,613		—
Total securities available for sale	$	540,883	$	—	$	540,883	$	—

December 31, 2020
U.S. Government agency obligations	$	12,434	$	—	$	12,434	$	—
Residential mortgage-backed securities	187,212		—		187,212		—
Commercial mortgage-backed securities	17,331		—		17,331		—
Asset backed securities	14,447		—		14,447		—
Corporate investments	33,148		—		33,148		—
State and political subdivisions	46,801		—		46,801		—
Total securities available for sale	$	311,373	$	—	$	311,373	$	—

Schedule of assets measured at fair value on a non-recurring basis

Assets measured at fair value on a non-recurring basis are summarized below.

	Fair		Fair Value Measurements Using
(In thousands)	Value		Level 1		Level 2		Level 3
Impaired loans, net of allowance for loan losses:
September 30, 2021	$	44,448	$	—	$	—	$	44,448
December 31, 2020	$	42,573	$	—	$	—	$	42,573
Other real estate owned:
September 30, 2021	$	6,989	$	—	$	—	$	6,989
December 31, 2020	$	6,754	$	—	$	—	$	6,754

Schedule of quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis

The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis.

	Qualitative Information about Level 3 Fair Value Measurements
(In thousands)	Carrying Value		Valuation Methods	Unobservable Inputs	Range	Weighted Average
September 30, 2021
Impaired loans, net of specific allowance	$	44,448	Third-party appraisals	Selling costs	5% - 10%	6%
Other real estate owned	$	6,989	Third-party appraisals and internal evaluations	Selling costs	5% - 10%	6%

	Qualitative Information about Level 3 Fair Value Measurements
(In thousands)	Carrying Value		Valuation Methods	Unobservable Inputs	Range	Weighted Average
December 31, 2020
Impaired loans, net of specific allowance	$	42,573	Third-party appraisals	Selling costs	5% - 10%	6%
Other real estate owned	$	6,754	Third-party appraisals and internal evaluations	Selling costs	5% - 10%	6%

Schedule of estimated fair values of the Company’s financial instruments not previously disclosed

The following table presents estimated fair values of the Company’s financial instruments not previously disclosed:

	September 30, 2021				December 31, 2020
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial assets:
Level 1 inputs:
Cash and cash equivalents	$	695,069	$	695,069	$	637,545	$	637,545
Level 2 inputs:
Securities held to maturity	78,423		78,905		93,766		94,436
FHLB stock	2,729		2,729		2,557		2,557
Accrued interest receivable	17,120		17,120		18,061		18,061
Level 3 inputs:
Loans held for sale	13,904		13,904		28,684		28,684
Loans, net	3,482,085		3,462,588		3,342,732		3,348,872
Financial liabilities:
Level 2 inputs:
Deposits	4,529,868		4,435,783		4,152,810		4,153,402
FHLB and other borrowings	31,026		31,778		33,771		34,941
Subordinated debentures	111,411		111,411		111,124		111,124
Accrued interest payable	2,647		2,647		2,709		2,709

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Subordinated Debentures and Trust Preferred Securities (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Summary of debentures payable to statutory trusts

The following is a summary of subordinated debentures payable to statutory trusts.

(In thousands)	Year of Maturity	Interest Rate	September 30, 2021		December 31, 2020
First Bancshares of Baton Rouge Statutory Trust I	2034	3 month LIBOR, plus 2.50%	$	4,124	$	4,124
State Capital Statutory Trust IV	2035	3 month LIBOR, plus 1.99%	5,155		5,155
BancPlus Statutory Trust II	2036	3 month LIBOR, plus 1.50%	20,619		20,619
BancPlus Statutory Trust III	2037	3 month LIBOR, plus 1.35%	20,619		20,619
State Capital Master Trust	2037	3 month LIBOR, plus 1.46%	6,186		6,186
			$	56,703	$	56,703

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Employee Benefits (Tables)

9 Months Ended

Sep. 30, 2021

Postemployment Benefits [Abstract]

Schedule of ESOP-owned shares

The following table presents information related to the Company’s ESOP-owned shares.

(In thousands, except share data)	September 30, 2021		December 31, 2020
Allocated shares	1,469,547		1,449,335
Unearned shares	31,185		50,124
Total ESOP shares	1,500,732		1,499,459
Fair value of unearned shares	$	2,050	$	2,569

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Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Summary of restricted stock activity

A summary of the Company’s equity-based award activity and related information for the Company’s RSAs is as follows:

	Nine Months Ended
	September 30, 2021			September 30, 2020
	Number of Shares	Weighted Average Grant Date Fair Value		Number of Shares	Weighted Average Grant Date Fair Value
Beginning of period	91,109	$	50.60	69,097	$	53.67
Granted	85,147	51.59		39,155	45.36
Vested	(33,545)	52.03		(17,143)	51.03
Forfeited	(1,830)	49.46		—	—
End of period	140,881	$	50.88	91,109	$	50.60

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Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2021 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	1

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Net income	$ 14,197	$ 12,600	$ 45,533	$ 27,515
Weighted average common shares outstanding (in shares)	9,934,000	10,070,000	9,936,000	9,231,000
Diluted effect of unallocated stock (in shares)	116,000	64,000	105,000	72,000
Diluted common shares (in shares)	10,050,000	10,134,000	10,041,000	9,303,000
Basic earnings per common share (in USD per shares)	$ 1.43	$ 1.25	$ 4.58	$ 2.98
Diluted earnings per common share (in USD per shares)	$ 1.41	$ 1.24	$ 4.53	$ 2.96

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Business Combination - Narrative (Details) $ / shares in Units, $ in Thousands		6 Months Ended	9 Months Ended
	Apr. 01, 2020 USD ($) $ / shares shares	Sep. 30, 2020 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 $ / shares	Dec. 31, 2020 $ / shares
Business Acquisition [Line Items]
Conversion ratio (in shares)	0.6950
Common stock, par value per share (in dollars per share) | $ / shares	$ 1.00			$ 1.00	$ 1.00
Number of shares issued | shares	2,453,827
Consideration paid in lieu of fractional shares	$ 12
Acquisition expenses		$ 6,400	$ 6,200
Merger Agreement
Business Acquisition [Line Items]
Acquired core deposit intangible	$ 6,000
Acquired core deposit intangible, amortization period	10 years
Loans acquired	$ 880,390
Discount on loans acquired	19,100
Contractual cash flows not expected to be collected	$ 11,600
SCC
Business Acquisition [Line Items]
Common stock, par value per share (in dollars per share) | $ / shares	$ 1.25

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Business Combination - Consideration paid and preliminary fair value allocation (Details) - USD ($) $ in Thousands	Apr. 01, 2020	Sep. 30, 2021	Dec. 31, 2020
Liabilities assumed:
Excess of fair value of net assets acquired over consideration paid - Gain on bargain purchase		$ 2,616	$ 2,616
Merger Agreement
Purchase price allocation:
Common stock issued	$ 71,161
Cash paid for fractional shares	12
Total purchase price	71,173
Assets acquired:
Cash and due from banks	75,315
Securities, Federal Home Loan Bank (“FHLB”) stock and First National Bankers Bankshares, Inc. stock	97,910
Loans, net	880,390
Premises and equipment	29,968
Accrued interest receivable	3,664
Bank-owned life insurance	28,441
Core deposit intangible	6,045
Taxes receivable	7,787
Deferred tax asset, net	5,972
Other assets	3,330
Total assets acquired	1,138,822
Liabilities assumed:
Deposits	1,024,381
Advances from FHLB and other borrowings	14,563
Subordinated debentures	11,121
Deferred compensation	10,310
Other liabilities	6,196
Total liabilities assumed	1,066,571
Net assets acquired	72,251
Excess of fair value of net assets acquired over consideration paid - Gain on bargain purchase	$ (1,078)

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Business Combination - Unaudited pro forma information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Business Combination and Asset Acquisition [Abstract]
Net interest income	$ 43,828	$ 123,958
Other operating income	18,626	47,034
Net income available to common shareholders	$ 13,993	$ 27,539
Earnings per common share:
Basic (in dollars per share)	$ 1.39	$ 2.74
Diluted (in dollars per share)	$ 1.38	$ 2.72

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Investment Securities - Summary of amortized cost and fair value of the securities available for sale (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized cost	$ 536,427	$ 302,219
Gross unrealized gains	7,115	9,320
Gross unrealized losses	2,659	166
Fair value	540,883	311,373
U.S. Government agency obligations
Debt Securities, Available-for-sale [Line Items]
Amortized cost	301,619	12,092
Gross unrealized gains	421	342
Gross unrealized losses	2,199	0
Fair value	299,841	12,434
Residential mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost	118,554	181,569
Gross unrealized gains	3,522	5,644
Gross unrealized losses	230	1
Fair value	121,846	187,212
Commercial mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost	14,764	16,793
Gross unrealized gains	146	538
Gross unrealized losses	16	0
Fair value	14,894	17,331
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized cost	13,068	13,990
Gross unrealized gains	506	543
Gross unrealized losses	35	86
Fair value	13,539	14,447
Corporate investments
Debt Securities, Available-for-sale [Line Items]
Amortized cost	43,000	32,750
Gross unrealized gains	1,210	420
Gross unrealized losses	60	22
Fair value	44,150	33,148
State and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized cost	45,422	45,025
Gross unrealized gains	1,310	1,833
Gross unrealized losses	119	57
Fair value	$ 46,613	$ 46,801

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Investment Securities - Summary of amortized cost and fair value of securities held to maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	$ 78,423	$ 93,766
Gross unrealized gains	482	670
Gross unrealized losses	0	0
Fair value of securities held to maturity	78,905	94,436
State and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Amortized cost	78,423	93,766
Gross unrealized gains	482	670
Gross unrealized losses	0	0
Fair value of securities held to maturity	$ 78,905	$ 94,436

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Investment Securities - Summary of investment securities that were in an unrealized loss position (Details) $ in Thousands	Sep. 30, 2021 USD ($) debtPosition	Dec. 31, 2020 USD ($) debtPosition
Available for sale:
Fair value, less than 12 months	$ 282,845	$ 19,525
Unrealized losses, less than 12 months	2,624	166
Fair value, 12 months or more	2,271	0
Unrealized losses, 12 months or more	35	0
Fair value, total	285,116	19,525
Unrealized losses, total	$ 2,659	$ 166
Unrealized loss position, number of positions | debtPosition	62	13
U.S. Government agencies
Available for sale:
Fair value, less than 12 months	$ 255,063
Unrealized losses, less than 12 months	2,199
Fair value, 12 months or more	0
Unrealized losses, 12 months or more	0
Fair value, total	255,063
Unrealized losses, total	2,199
Residential mortgage-backed securities
Available for sale:
Fair value, less than 12 months	12,031	$ 4,471
Unrealized losses, less than 12 months	230	1
Fair value, 12 months or more	0	0
Unrealized losses, 12 months or more	0	0
Fair value, total	12,031	4,471
Unrealized losses, total	230	1
Commercial mortgage-backed securities
Available for sale:
Fair value, less than 12 months	3,174	305
Unrealized losses, less than 12 months	16	0
Fair value, 12 months or more	0	0
Unrealized losses, 12 months or more	0	0
Fair value, total	3,174	305
Unrealized losses, total	16	0
Asset-backed securities
Available for sale:
Fair value, less than 12 months	0	2,492
Unrealized losses, less than 12 months	0	86
Fair value, 12 months or more	2,271	0
Unrealized losses, 12 months or more	35	0
Fair value, total	2,271	2,492
Unrealized losses, total	35	86
Corporate investments
Available for sale:
Fair value, less than 12 months	6,941	9,229
Unrealized losses, less than 12 months	60	22
Fair value, 12 months or more	0	0
Unrealized losses, 12 months or more	0	0
Fair value, total	6,941	9,229
Unrealized losses, total	60	22
State and political subdivisions
Available for sale:
Fair value, less than 12 months	5,636	3,028
Unrealized losses, less than 12 months	119	57
Fair value, 12 months or more	0	0
Unrealized losses, 12 months or more	0	0
Fair value, total	5,636	3,028
Unrealized losses, total	$ 119	$ 57

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Investment Securities - Summary of amortized cost and fair value of debt securities by contractual maturity (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Amortized cost
One year or less	$ 11,330
After one through five years	179,898
After five through ten years	204,514
After ten years	140,685
Allocated and single maturity date, total	536,427
Fair value
One year or less	11,402
After one through five years	179,041
After five through ten years	205,651
After ten years	144,789
Allocated and single maturity date, total	540,883
Amortized Cost
One year or less	12,437
After one through five years	46,344
After five through ten years	16,887
After ten years	2,755
Allocated and single maturity date, total	78,423
Fair Value
One year or less	12,455
After one through five years	46,558
After five through ten years	17,137
After ten years	2,755
Allocated and single maturity date, total	$ 78,905

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Investment Securities - Summary of the amortized cost and fair value for investment securities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Available for sale:
Amortization cost	$ 536,427	$ 302,219
Fair value	540,883	311,373
Debt Securities, Held-to-maturity [Abstract]
Securities held to maturity	78,423	93,766
Fair value of securities held to maturity	78,905	94,436
Pledged to secure public deposits and for other purposes required or permitted by law
Available for sale:
Amortization cost	441,300	251,913
Fair value	444,560	260,351
Debt Securities, Held-to-maturity [Abstract]
Securities held to maturity	44,697	57,110
Fair value of securities held to maturity	$ 45,144	$ 57,770

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Loans - Summary of the company's loan portfolio by loan class (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	$ 3,526,086	$ 3,378,732
Real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	2,791,351	2,583,573
Real estate | Residential properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	773,928	738,340
Real estate | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	465,564	403,496
Real estate | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	212,645	217,104
Real estate | Other commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	1,339,214	1,224,633
Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	534,160	635,714
Agricultural production and other loans to farmers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	101,973	85,469
Consumer and other loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	$ 98,602	$ 73,976

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Loans - Summary of non-accrual loans (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 8,044	$ 14,111
Real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	7,593	13,837
Real estate | Residential properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	3,318	3,869
Real estate | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	58	1,863
Real estate | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	1,893	158
Real estate | Other commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	2,324	7,947
Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	106	12
Agricultural production and other loans to farmers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	135	85
Consumer and other loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 210	$ 177

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Loans - Summary of past due loans (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	$ 3,526,086	$ 3,378,732
Past Due 90 Days or More and Accruing	2,299	6,303
Financial Asset, Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	16,288	23,229
Past Due 30-89 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	11,465	13,836
Past Due 90 Days or More
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	4,823	9,393
Financial Asset, Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	3,509,798	3,355,503
Real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	2,791,351	2,583,573
Past Due 90 Days or More and Accruing	2,087	6,052
Real estate | Financial Asset, Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	14,131	19,843
Real estate | Past Due 30-89 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	9,960	10,878
Real estate | Past Due 90 Days or More
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	4,171	8,965
Real estate | Financial Asset, Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	2,777,220	2,563,730
Real estate | Residential properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	773,928	738,340
Past Due 90 Days or More and Accruing	696	1,174
Real estate | Residential properties | Financial Asset, Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	7,435	7,852
Real estate | Residential properties | Past Due 30-89 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	5,427	5,836
Real estate | Residential properties | Past Due 90 Days or More
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	2,008	2,016
Real estate | Residential properties | Financial Asset, Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	766,493	730,488
Real estate | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	465,564	403,496
Past Due 90 Days or More and Accruing	1,331	1,843
Real estate | Construction and land development | Financial Asset, Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	1,638	3,799
Real estate | Construction and land development | Past Due 30-89 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	307	713
Real estate | Construction and land development | Past Due 90 Days or More
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	1,331	3,086
Real estate | Construction and land development | Financial Asset, Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	463,926	399,697
Real estate | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	212,645	217,104
Past Due 90 Days or More and Accruing	46	618
Real estate | Farmland | Financial Asset, Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	704	1,152
Real estate | Farmland | Past Due 30-89 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	189	373
Real estate | Farmland | Past Due 90 Days or More
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	515	779
Real estate | Farmland | Financial Asset, Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	211,941	215,952
Real estate | Other commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	1,339,214	1,224,633
Past Due 90 Days or More and Accruing	14	2,417
Real estate | Other commercial | Financial Asset, Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	4,354	7,040
Real estate | Other commercial | Past Due 30-89 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	4,037	3,956
Real estate | Other commercial | Past Due 90 Days or More
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	317	3,084
Real estate | Other commercial | Financial Asset, Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	1,334,860	1,217,593
Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	534,160	635,714
Past Due 90 Days or More and Accruing	94	135
Commercial and industrial loans | Financial Asset, Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	1,336	2,330
Commercial and industrial loans | Past Due 30-89 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	1,144	2,195
Commercial and industrial loans | Past Due 90 Days or More
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	192	135
Commercial and industrial loans | Financial Asset, Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	532,824	633,384
Agricultural production and other loans to farmers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	101,973	85,469
Past Due 90 Days or More and Accruing	94	15
Agricultural production and other loans to farmers | Financial Asset, Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	249	334
Agricultural production and other loans to farmers | Past Due 30-89 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	23	319
Agricultural production and other loans to farmers | Past Due 90 Days or More
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	226	15
Agricultural production and other loans to farmers | Financial Asset, Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	101,724	85,135
Consumer and other loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	98,602	73,976
Past Due 90 Days or More and Accruing	24	101
Consumer and other loans | Financial Asset, Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	572	722
Consumer and other loans | Past Due 30-89 Days
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	338	444
Consumer and other loans | Past Due 90 Days or More
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	234	278
Consumer and other loans | Financial Asset, Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	$ 98,030	$ 73,254

XML

Loans - Summary of impaired loans (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Impaired loans with no related allowance:
Principal balance	$ 47,592	$ 44,225
Recorded balance	40,392	35,226
Impaired loans with related allowance:
Principal balance	5,332	11,575
Recorded investment	5,332	11,542
Related allowance	1,276	4,195
Principal balance, total impaired loans	52,924	55,800
Recorded balance, total impaired loans	45,724	46,768
Real estate
Impaired loans with no related allowance:
Principal balance	27,344	33,467
Recorded balance	20,642	24,990
Impaired loans with related allowance:
Principal balance	3,008	7,145
Recorded investment	3,008	7,112
Related allowance	285	2,037
Real estate | Residential properties
Impaired loans with no related allowance:
Principal balance	7,666	8,474
Recorded balance	5,099	5,795
Impaired loans with related allowance:
Principal balance	1,060	1,073
Recorded investment	1,060	1,073
Related allowance	9	9
Real estate | Construction and land development
Impaired loans with no related allowance:
Principal balance	3,669	5,530
Recorded balance	1,656	3,462
Impaired loans with related allowance:
Principal balance	0	0
Recorded investment	0	0
Related allowance	0	0
Real estate | Farmland
Impaired loans with no related allowance:
Principal balance	11,994	11,024
Recorded balance	11,439	10,584
Impaired loans with related allowance:
Principal balance	0	0
Recorded investment	0	0
Related allowance	0	0
Real estate | Other commercial
Impaired loans with no related allowance:
Principal balance	4,015	8,439
Recorded balance	2,448	5,149
Impaired loans with related allowance:
Principal balance	1,948	6,072
Recorded investment	1,948	6,039
Related allowance	276	2,028
Commercial and industrial loans
Impaired loans with no related allowance:
Principal balance	19,723	10,386
Recorded balance	19,393	9,962
Impaired loans with related allowance:
Principal balance	2,324	4,430
Recorded investment	2,324	4,430
Related allowance	991	2,158
Agricultural production and other loans to farmers
Impaired loans with no related allowance:
Principal balance	289	156
Recorded balance	147	97
Impaired loans with related allowance:
Principal balance	0	0
Recorded investment	0	0
Related allowance	0	0
Consumer and other loans
Impaired loans with no related allowance:
Principal balance	236	216
Recorded balance	210	177
Impaired loans with related allowance:
Principal balance	0	0
Recorded investment	0	0
Related allowance	$ 0	$ 0

XML

Loans - Summary of average recorded investment and interest recognized for impaired loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average investment	$ 45,542	$ 33,274	$ 46,236	$ 31,128
Interest recognized	467	264	1,427	788
Real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average investment	23,458	31,864	25,875	30,179
Interest recognized	183	257	671	768
Real estate | Residential properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average investment	6,123	6,934	6,489	5,773
Interest recognized	42	38	106	114
Real estate | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average investment	1,139	2,026	2,107	2,013
Interest recognized	23	31	80	96
Real estate | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average investment	11,150	10,515	10,452	10,517
Interest recognized	104	127	356	382
Real estate | Other commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average investment	5,046	12,389	6,827	11,876
Interest recognized	14	61	129	176
Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average investment	21,728	1,133	20,076	689
Interest recognized	281	7	753	20
Agricultural production and other loans to farmers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average investment	146	97	94	78
Interest recognized	3	0	3	0
Consumer and other loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average investment	210	180	191	182
Interest recognized	$ 0	$ 0	$ 0	$ 0

XML

Loans - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses attributable to restructured loans		$ 44,001	$ 42,004	$ 36,000	$ 26,848	$ 24,059	$ 21,500
Restructured loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses attributable to restructured loans		$ 169		$ 2,000
Charge off related to loan classified as TDR	$ 1,800

XML

Allowance for Loan Losses - Schedule of the credit quality of the company's loan portfolio by loan class (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	$ 3,526,086	$ 3,378,732
Risk Grades 1-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	3,460,212	3,314,790
Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	5,200	142
Rick Grade 8
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	60,552	63,522
Risk Grade 9
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	122	278
Real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	2,791,351	2,583,573
Real estate | Risk Grades 1-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	2,750,002	2,536,947
Real estate | Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	5,129	0
Real estate | Rick Grade 8
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	36,143	46,399
Real estate | Risk Grade 9
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	77	227
Real estate | Residential properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	773,928	738,340
Real estate | Residential properties | Risk Grades 1-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	759,167	721,024
Real estate | Residential properties | Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	21	0
Real estate | Residential properties | Rick Grade 8
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	14,740	17,316
Real estate | Residential properties | Risk Grade 9
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	0	0
Real estate | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	465,564	403,496
Real estate | Construction and land development | Risk Grades 1-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	460,712	401,347
Real estate | Construction and land development | Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	4,107	0
Real estate | Construction and land development | Rick Grade 8
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	745	2,149
Real estate | Construction and land development | Risk Grade 9
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	0	0
Real estate | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	212,645	217,104
Real estate | Farmland | Risk Grades 1-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	199,608	205,211
Real estate | Farmland | Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	0	0
Real estate | Farmland | Rick Grade 8
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	13,037	11,893
Real estate | Farmland | Risk Grade 9
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	0	0
Real estate | Other commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	1,339,214	1,224,633
Real estate | Other commercial | Risk Grades 1-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	1,330,515	1,209,365
Real estate | Other commercial | Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	1,001	0
Real estate | Other commercial | Rick Grade 8
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	7,621	15,041
Real estate | Other commercial | Risk Grade 9
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	77	227
Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	534,160	635,714
Commercial and industrial loans | Risk Grades 1-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	510,359	619,086
Commercial and industrial loans | Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	0	51
Commercial and industrial loans | Rick Grade 8
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	23,756	16,526
Commercial and industrial loans | Risk Grade 9
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	45	51
Agricultural production and other loans to farmers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	101,973	85,469
Agricultural production and other loans to farmers | Risk Grades 1-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	101,549	85,197
Agricultural production and other loans to farmers | Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	71	91
Agricultural production and other loans to farmers | Rick Grade 8
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	353	181
Agricultural production and other loans to farmers | Risk Grade 9
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	0	0
Consumer and other loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	98,602	73,976
Consumer and other loans | Risk Grades 1-6
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	98,302	73,560
Consumer and other loans | Risk Grade 7
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	0	0
Consumer and other loans | Rick Grade 8
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	300	416
Consumer and other loans | Risk Grade 9
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans before allowance for loan losses	$ 0	$ 0

XML

Allowance for Loan Losses - Schedule of Allowance for loan losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 42,004	$ 24,059	$ 36,000	$ 21,500
Provision for loan losses	1,469	4,671	7,395	7,706
Recoveries on loans	2,308	1,104	5,142	3,154
Loans charged off	(1,780)	(2,986)	(4,536)	(5,512)
Ending balance	44,001	26,848	44,001	26,848
Period End Allowance Balance Allocated To:
Individually evaluated for impairment	1,276	2,437	1,276	2,437
Collectively evaluated for impairment	42,725	24,411	42,725	24,411
Commercial and industrial loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	6,493	3,269	6,337	2,773
Provision for loan losses	(565)	2,812	(433)	3,427
Recoveries on loans	175	34	479	148
Loans charged off	(37)	(261)	(317)	(494)
Ending balance	6,066	5,854	6,066	5,854
Period End Allowance Balance Allocated To:
Individually evaluated for impairment	991	471	991	471
Collectively evaluated for impairment	5,075	5,383	5,075	5,383
Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	23,051	12,580	20,163	10,766
Provision for loan losses	616	1,835	3,481	3,824
Recoveries on loans	1,625	103	2,277	150
Loans charged off	(349)	(1,960)	(978)	(2,182)
Ending balance	24,943	12,558	24,943	12,558
Period End Allowance Balance Allocated To:
Individually evaluated for impairment	276	1,949	276	1,949
Collectively evaluated for impairment	24,667	10,609	24,667	10,609
Residential
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	10,234	5,968	7,900	5,568
Provision for loan losses	352	170	2,581	707
Recoveries on loans	59	140	340	237
Loans charged off	(122)	(34)	(298)	(268)
Ending balance	10,523	6,244	10,523	6,244
Period End Allowance Balance Allocated To:
Individually evaluated for impairment	9	17	9	17
Collectively evaluated for impairment	10,514	6,227	10,514	6,227
Consumer and other loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	2,226	1,340	1,600	1,135
Provision for loan losses	1,066	(82)	1,766	168
Recoveries on loans	449	827	2,046	2,619
Loans charged off	(1,272)	(731)	(2,943)	(2,568)
Ending balance	2,469	1,354	2,469	1,354
Period End Allowance Balance Allocated To:
Individually evaluated for impairment	0	0	0	0
Collectively evaluated for impairment	$ 2,469	1,354	$ 2,469	1,354
Unallocated
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance		902		1,258
Provision for loan losses		(64)		(420)
Recoveries on loans		0		0
Loans charged off		0		0
Ending balance		838		838
Period End Allowance Balance Allocated To:
Individually evaluated for impairment		0		0
Collectively evaluated for impairment		$ 838		$ 838

XML

Allowance for Loan Losses - Schedule of the impairment methodology (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	$ 38,200	$ 46,768
Collectively evaluated for impairment	3,487,886	3,331,964
Total Loans	3,526,086	3,378,732
Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	21,611	14,392
Collectively evaluated for impairment	512,549	621,322
Total Loans	534,160	635,714
Commercial Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	14,046	25,234
Collectively evaluated for impairment	2,003,377	1,819,999
Total Loans	2,017,423	1,845,233
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	2,369	6,868
Collectively evaluated for impairment	771,559	731,472
Total Loans	773,928	738,340
Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	174	274
Collectively evaluated for impairment	200,401	159,171
Total Loans	$ 200,575	$ 159,445

XML

Regulatory Matters - Narrative (Details)	Sep. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Regulatory Matters [Abstract]
CET1 capital to risk-weighted assets (as a percentage)	0.0250	0.0250
Tier one additional capital, trust preferred securities	$ 51,000,000	$ 50,700,000
Banking regulation, tier one additional capital, trust preferred securities	0	0
Tier 2 capital, subordinated debentures	$ 58,800,000	$ 58,600,000

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Regulatory Matters - Summary of Capital Requirements (Details) $ in Thousands	Sep. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Minimum Requirement
CET1 capital to risk-weighted assets (as a percentage)	0.0250	0.0250
BancPlus Corporation
Actual
CET1 Capital to Risk-Weighted Assets	$ 374,642	$ 339,936
CET1 Capital to Risk-Weighted Assets, ratio (as a percentage)	95.70	99.40
Tier 1 Capital to Risk-Weighted Assets	$ 425,598	$ 390,713
Tier 1 Capital to Risk-Weighted Assets, ratio (as a percentage)	108.80	114.20
Total Capital to Risk-Weighted Assets	$ 580,350	$ 485,357
Total Capital to Risk-Weighted Assets, ratio (as a percentage)	135	141.90
Tier 1 Capital to Average Assets	$ 425,598	$ 390,713
Tier 1 Capital to Average Assets, ratio (as a percentage)	84	85.50
Minimum Requirement
CET1 Capital to Risk-Weighted Assets	$ 273,936	$ 239,437
CET1 capital to risk-weighted assets (as a percentage)	70.00	70.00
Tier 1 Capital to Risk-Weighted Assets	$ 332,636	$ 290,745
Tier 1 Capital to Risk-Weighted Assets, ratio (as a percentage)	85	85
Total Capital to Risk-Weighted Assets	$ 410,904	$ 359,155
Total Capital to Risk-Weighted Assets, ratio (as a percentage)	105	105
Tier 1 Capital to Average Assets	$ 202,413	$ 182,853
Tier 1 Capital to Average Assets, ratio (as a percentage)	40.00	40.00
Subsidiaries
Actual
CET1 Capital to Risk-Weighted Assets	$ 420,455	$ 387,231
CET1 Capital to Risk-Weighted Assets, ratio (as a percentage)	107.70	113.60
Tier 1 Capital to Risk-Weighted Assets	$ 420,455	$ 387,231
Tier 1 Capital to Risk-Weighted Assets, ratio (as a percentage)	107.70	113.60
Total Capital to Risk-Weighted Assets	$ 464,456	$ 423,231
Total Capital to Risk-Weighted Assets, ratio (as a percentage)	118.90	124.20
Tier 1 Capital to Average Assets	$ 420,455	$ 387,231
Tier 1 Capital to Average Assets, ratio (as a percentage)	83.20	84.90
Minimum Requirement
CET1 Capital to Risk-Weighted Assets	$ 273,372	$ 238,629
CET1 capital to risk-weighted assets (as a percentage)	70.00	70.00
Tier 1 Capital to Risk-Weighted Assets	$ 331,951	$ 289,763
Tier 1 Capital to Risk-Weighted Assets, ratio (as a percentage)	85	85
Total Capital to Risk-Weighted Assets	$ 410,058	$ 357,943
Total Capital to Risk-Weighted Assets, ratio (as a percentage)	105	105
Tier 1 Capital to Average Assets	$ 202,059	$ 182,531
Tier 1 Capital to Average Assets, ratio (as a percentage)	40.00	40.00
Required to be Well Capitalized
CET1 Capital to Risk-Weighted Assets	$ 253,845	$ 221,584
CET1 Capital to Risk-Weighted Assets, ratio (as a percentage)	65	65
Tier 1 Capital to Risk-Weighted Assets	$ 312,425	$ 272,719
Tier 1 Capital to Risk-Weighted Assets, ratio (as a percentage)	80.00	80.00
Total Capital to Risk-Weighted Assets	$ 390,531	$ 340,898
Total Capital to Risk-Weighted Assets, ratio (as a percentage)	100.00	100.00
Tier 1 Capital to Average Assets	$ 252,574	$ 228,164
Tier 1 Capital to Average Assets, ratio (as a percentage)	50.00	50.00

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Fair Value - Schedule of Assets and Liabilities Measured on Recurring Basis (Details) $ in Thousands	Sep. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	$ 540,883	$ 311,373
Minimum | Marketability and comparability discounts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input (as a percent)	0.05
Maximum | Marketability and comparability discounts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input (as a percent)	0.15
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	$ 0	0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	540,883	311,373
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	0	0
U.S. Government agency obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	299,841	12,434
U.S. Government agency obligations | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	0	0
U.S. Government agency obligations | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	299,841	12,434
U.S. Government agency obligations | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	0	0
Residential mortgage-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	121,846	187,212
Residential mortgage-backed securities | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	0	0
Residential mortgage-backed securities | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	121,846	187,212
Residential mortgage-backed securities | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	0	0
Commercial mortgage-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	14,894	17,331
Commercial mortgage-backed securities | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	0	0
Commercial mortgage-backed securities | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	14,894	17,331
Commercial mortgage-backed securities | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	0	0
Asset-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	13,539	14,447
Asset-backed securities | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	0	0
Asset-backed securities | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	13,539	14,447
Asset-backed securities | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	0	0
Corporate investments
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	44,150	33,148
Corporate investments | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	0	0
Corporate investments | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	44,150	33,148
Corporate investments | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	0	0
State and political subdivisions
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	46,613	46,801
State and political subdivisions | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	0	0
State and political subdivisions | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	46,613	46,801
State and political subdivisions | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available for sale	$ 0	$ 0

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Fair Value - Schedule of assets measured at fair value on a non-recurring basis (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, net of allowance for loan losses	$ 44,448	$ 42,573
Other real estate owned	6,989	6,754
Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, net of allowance for loan losses	44,448	42,573
Other real estate owned	6,989	6,754
Nonrecurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, net of allowance for loan losses	0	0
Other real estate owned	0	0
Nonrecurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, net of allowance for loan losses	0	0
Other real estate owned	0	0
Nonrecurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, net of allowance for loan losses	44,448	42,573
Other real estate owned	$ 6,989	$ 6,754

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Fair Value - Qualitative Information about Level 3 Fair Value Measurement (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, net of specific allowance	$ 44,448	$ 42,573
Other real estate owned	$ 6,989	$ 6,754
Selling costs | Third-party appraisals
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input weighted average (as a percentage)	6.00%	6.00%
Other real estate owned, weighted average measurement input (as a percentage)	6.00%	6.00%
Minimum | Selling costs | Third-party appraisals
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, net of allowance for loan losses, selling costs (as a percentage)	5.00%	5.00%
Other real estate owned, measurement input (as a percentage)	0.05	0.05
Maximum | Selling costs | Third-party appraisals
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, net of allowance for loan losses, selling costs (as a percentage)	10.00%	10.00%
Other real estate owned, measurement input (as a percentage)	0.10	0.10

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Fair Value - Summary of estimated fair values of the Company’s financial instruments not previously disclosed (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Level 2 inputs:
Securities held to maturity	$ 78,423	$ 93,766
Accrued interest receivable	17,120	18,061
Carrying Value
Level 2 inputs:
Deposits	4,529,868	4,152,810
FHLB and other borrowings	31,026	33,771
Subordinated debentures	111,411	111,124
Accrued interest payable	2,647	2,709
Carrying Value | Level 1
Level 1 inputs:
Cash and cash equivalents	695,069	637,545
Carrying Value | Level 2
Level 2 inputs:
Securities held to maturity	78,423	93,766
FHLB stock	2,729	2,557
Accrued interest receivable	17,120	18,061
Carrying Value | Level 3
Level 3 inputs:
Loans held for sale	13,904	28,684
Loans, net	3,482,085	3,342,732
Fair Value
Level 2 inputs:
Deposits	4,435,783	4,153,402
FHLB and other borrowings	31,778	34,941
Subordinated debentures	111,411	111,124
Accrued interest payable	2,647	2,709
Fair Value | Level 1
Level 1 inputs:
Cash and cash equivalents	695,069	637,545
Fair Value | Level 2
Level 2 inputs:
Securities held to maturity	78,905	94,436
FHLB stock	2,729	2,557
Accrued interest receivable	17,120	18,061
Fair Value | Level 3
Level 3 inputs:
Loans held for sale	13,904	28,684
Loans, net	$ 3,462,588	$ 3,348,872

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Subordinated Debentures and Trust Preferred Securities - Narrative (Details) - Subordinated Debt - The Notes - USD ($)	Jun. 04, 2025	Jun. 04, 2020	Sep. 30, 2021
Debt Instrument [Line Items]
Face amount of debt issued and sold		$ 60,000,000
Issuance costs		$ 1,400,000
Period to defer payment of interest (not exceeding)		5 years
Remaining purchase discount			$ 4,000,000
Forecast
Debt Instrument [Line Items]
Multiples allowed to be redeemed	$ 1,000
Redemption price (as a percent)	100.00%
From and including June 4, 2020, to but excluding June 15, 2025 or early redemption date
Debt Instrument [Line Items]
Fixed interest rate		6.00%
From and including June 15, 2025, to but excluding the maturity date or early redemption date | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate		5.86%

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Subordinated Debentures and Trust Preferred Securities - Summary of debentures payable to statutory trusts (Details) - Subordinated Debt - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Debentures payable	$ 56,703	$ 56,703
First Bancshares of Baton Rouge Statutory Trust I
Debt Instrument [Line Items]
Debentures payable	4,124	4,124
State Capital Statutory Trust IV
Debt Instrument [Line Items]
Debentures payable	5,155	5,155
BancPlus Statutory Trust II
Debt Instrument [Line Items]
Debentures payable	20,619	20,619
BancPlus Statutory Trust III
Debt Instrument [Line Items]
Debentures payable	20,619	20,619
State Capital Master Trust
Debt Instrument [Line Items]
Debentures payable	$ 6,186	$ 6,186
LIBOR | First Bancshares of Baton Rouge Statutory Trust I
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%
LIBOR | State Capital Statutory Trust IV
Debt Instrument [Line Items]
Basis spread on variable rate	1.99%
LIBOR | BancPlus Statutory Trust II
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
LIBOR | BancPlus Statutory Trust III
Debt Instrument [Line Items]
Basis spread on variable rate	1.35%
LIBOR | State Capital Master Trust
Debt Instrument [Line Items]
Basis spread on variable rate	1.46%

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Employee Benefits - Narrative (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021 USD ($) h $ / shares shares	Dec. 31, 2019 shares	Dec. 31, 2012 shares	Dec. 31, 2011 shares	Dec. 31, 2020 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Required annual hours of service for participation in ESOP (in hours) | h	1,000
Employers matching contribution, annual vesting percentage (as a percentage)	3.00%
Employer matching contribution, percent of match (as a percentage)	50.00%
Employer matching contribution, percent of employees' gross pay (as a percentage)	2.00%
ESOP owned shares (in shares)	1,500,732				1,499,459
Stock repurchased during period (in shares)		27,594	77,000	176,786
State Bank ESOP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
ESOP owned shares (in shares)	0				52,204
Employee Stock Ownership Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Redeemable common stock owned by the ESOP | $	$ 96,623				$ 74,278
Temporary equity (in USD per share) | $ / shares	$ 65.75				$ 51.25

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Employee Benefits - Schedule of ESOP (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Postemployment Benefits [Abstract]
Allocated shares (in shares)	1,469,547	1,449,335
Unearned shares (in shares)	31,185	50,124
Total ESOP (in shares)	1,500,732	1,499,459
Fair value of unearned shares (in USD)	$ 2,050	$ 2,569

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Equity (Details) - shares	Sep. 30, 2021	Dec. 31, 2020
Equity [Abstract]
Preferred stock, shares authorized (in shares)	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

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Stock Based Compensation (Details) - Restricted stock awards - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 1,700	$ 1,100
Forfeited (in shares)	1,830	0
Unrecognized compensation cost related to nonvested RSAs	$ 6,000
Unrecognized compensation cost related to nonvested RSAs, period for recognition	3 years
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	1 year
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	5 years

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Stock Based Compensation - Summary of Restricted Stock Activity (Details) - Restricted stock awards - $ / shares	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Number of Shares
Beginning of period (in shares)	91,109	69,097
Granted (in shares)	85,147	39,155
Vested (in shares)	(33,545)	(17,143)
Forfeited (in shares)	(1,830)	0
End of period (in shares)	140,881	91,109
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 50.60	$ 53.67
Granted (in dollars per share)	51.59	45.36
Vested (in dollars per share)	52.03	51.03
Forfeited (in dollars per share)	49.46	0
Ending balance (in dollars per share)	$ 50.88	$ 50.60

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Commitment and Contingencies (Details)	Mar. 20, 2019 defendant
Commitments and Contingencies Disclosure [Abstract]
Number of former employees named as defendants	3
Number of current employees named as defendants	1

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COVID-19 (Details) $ in Thousands	Sep. 30, 2021 USD ($) loan	Dec. 31, 2020 USD ($)
Unusual or Infrequent Item, or Both [Line Items]
Loans before allowance for loan losses	$ 3,526,086	$ 3,378,732
COVID-19 pandemic | Paycheck Protection Program
Unusual or Infrequent Item, or Both [Line Items]
Number of loans approved for forgiveness and paid | loan	5,756
Amount of loans approved for forgiveness and paid	$ 348,700
Number of loans | loan	1,948
Loans before allowance for loan losses	$ 101,000
Additional fee income expected	5,200
COVID-19 pandemic | CARES Act
Unusual or Infrequent Item, or Both [Line Items]
Loans before allowance for loan losses	$ 735,000
Number of loans granted deferment, temporary modifications | loan	1,892
Percentage of loans granted temporary modification (as a percentage)	20.80%
Number of loans currently in temporary modification | loan	3
Loans with temporary modifications, before allowance for loan losses	$ 27,200
Percentage of loans currently in temporary modification (as a percentage)	0.80%