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LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
The loan portfolio balances, net of unearned income and fees, consist of various types of loans primarily all made to borrowers located within Texas and segregated by class of loan were as follows:
December 31,
20232022
(In thousands)
Commercial and industrial$1,409,002 $1,455,795 
Paycheck Protection Program (PPP)5,100 13,226 
Real estate:
Commercial real estate (including multi-family residential)4,071,807 3,931,480 
Commercial real estate construction and land development1,060,406 1,037,678 
1-4 family residential (including home equity)1,047,174 1,000,956 
Residential construction267,357 268,150 
Consumer and other64,287 47,466 
Total loans7,925,133 7,754,751 
Allowance for credit losses on loans(91,684)(93,180)
Loans, net$7,833,449 $7,661,571 
Schedule of Related Party Transactions
Related-party loans activity for the year ended December 31, 2023 was as follows (in thousands):
Beginning balance on January 1$78,865 
New loans and additions63,811 
Repayments(27,533)
Ending balance on December 31$115,143 
Past Due Financing Receivables
An aging analysis of the recorded investment in past due loans, segregated by class of loans, is included below. The Company defines recorded investment as the outstanding loan balances including net deferred loan fees, and excluding accrued interest receivable of $37.4 million and $34.1 million as of December 31, 2023 and 2022, respectively, due to immateriality.
December 31, 2023
Loans Past Due and Still AccruingNonaccrual
Loans		Current
Loans		Total
Loans
30-89
Days		90 or More
Days		Total Past
Due Loans
(In thousands)
Commercial and industrial$6,096 $— $6,096 $5,048 $1,397,858 $1,409,002 
Paycheck Protection Program (PPP)375 — 375 — 4,725 5,100 
Real estate:
Commercial real estate (including multi-family residential)9,600 — 9,600 16,699 4,045,508 4,071,807 
Commercial real estate construction and land development7,341 — 7,341 5,043 1,048,022 1,060,406 
1-4 family residential (including home equity)3,492 — 3,492 8,874 1,034,808 1,047,174 
Residential construction498 — 498 3,288 263,571 267,357 
Consumer and other64 — 64 239 63,984 64,287 
Total loans$27,466 $— $27,466 $39,191 $7,858,476 $7,925,133 
December 31, 2022
Loans Past Due and Still AccruingNonaccrual
Loans		Current
Loans		Total
Loans
30-89
Days		90 or More
Days		Total Past
Due Loans
(In thousands)
Commercial and industrial$1,591 $— $1,591 $25,297 $1,428,907 $1,455,795 
Paycheck Protection Program (PPP)517 — 517 105 12,604 13,226 
Real estate:
Commercial real estate (including multi-family residential)3,222 — 3,222 9,970 3,918,288 3,931,480 
Commercial real estate construction and land development851 — 851 — 1,036,827 1,037,678 
1-4 family residential (including home equity)3,385 — 3,385 9,404 988,167 1,000,956 
Residential construction— — — — 268,150 268,150 
Consumer and other192 — 192 272 47,002 47,466 
Total loans$9,758 $— $9,758 $45,048 $7,699,945 $7,754,751 
Risk Ratings by Category of Loans The following summarizes the amortized cost basis of loans by year of origination/renewal and credit quality indicator by class of loan as of December 31, 2023 and 2022:
December 31, 2023
December 31, 2022
Term Loans Amortized Cost Basis by Origination YearRevolving LoansRevolving Loans
Converted to Term Loans		TotalTotal
20232022202120202019Prior
(In thousands)
Commercial and industrial
Pass$301,765 $260,052 $163,930 $41,778 $25,436 $18,802 $533,531 $31,824 $1,377,118 $1,400,191 
Special Mention121 2,708 491 407 358 — 4,169 86 8,340 18,982 
Substandard1,611 3,677 1,452 696 11,558 260 2,352 1,890 23,496 36,568 
Doubtful48 — — — — — — 48 54 
Total commercial and industrial loans$303,545 $266,437 $165,873 $42,881 $37,352 $19,062 $540,052 $33,800 $1,409,002 $1,455,795 
Current period gross charge-offs$— $549 $4,009 $796 $280 $— $4,193 $773 $10,600 
Paycheck Protection Program (PPP)
Pass$— $— $2,755 $2,345 $— $— $— $— $5,100 $13,226 
Special Mention— — — — — — — — — — 
Substandard— — — — — — — — — — 
Doubtful— — — — — — — — — — 
Total PPP loans$— $— $2,755 $2,345 $— $— $— $— $5,100 $13,226 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate (including multi-family residential)
Pass$421,800 $1,315,088 $874,084 $439,365 $337,674 $427,103 $132,261 $12,300 $3,959,675 $3,844,951 
Special Mention9,791 9,551 14,255 14,139 847 4,139 1,761 — 54,483 18,183 
Substandard4,087 6,172 19,076 9,457 4,967 13,456 87 347 57,649 68,346 
Doubtful— — — — — — — — — — 
Total commercial real estate (including multi-family residential) loans$435,678 $1,330,811 $907,415 $462,961 $343,488 $444,698 $134,109 $12,647 $4,071,807 $3,931,480 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate construction and land development
Pass$289,698 $523,742 $129,927 $21,601 $9,978 $4,311 $53,233 $299 $1,032,789 $1,025,141 
Special Mention210 4,962 4,076 — — 489 — — 9,737 832 
Substandard2,211 1,553 13,181 163 79 — 135 558 17,880 11,705 
Doubtful— — — — — — — — — — 
Total commercial real estate construction and land development$292,119 $530,257 $147,184 $21,764 $10,057 $4,800 $53,368 $857 $1,060,406 $1,037,678 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
December 31, 2023
December 31, 2022
Term Loans Amortized Cost Basis by Origination YearRevolving LoansRevolving Loans
Converted to Term Loans		TotalTotal
20232022202120202019 Prior
(In thousands)
1-4 family residential (including home equity)
Pass$167,718 $262,920 $219,584 $110,264 $69,534 $81,062 $90,227 $10,434 $1,011,743 $969,396 
Special Mention874 121 1,284 1,833 329 17 650 276 5,384 3,714 
Substandard1,926 2,456 3,527 1,579 4,967 5,816 7,727 2,049 30,047 27,846 
Doubtful— — — — — — — — — — 
Total 1-4 family residential (including home equity)$170,518 $265,497 $224,395 $113,676 $74,830 $86,895 $98,604 $12,759 $1,047,174 $1,000,956 
Current period gross charge-offs$— $— $— $— $— $23 $— $1,502 $1,525 
Residential construction
Pass$139,993 $112,013 $6,058 $4,062 $— $494 $1,449 $— $264,069 $266,943 
Special Mention— — — — — — — — — 421 
Substandard— 1,377 1,911 — — — — — 3,288 786 
Doubtful— — — — — — — — — — 
Total residential construction$139,993 $113,390 $7,969 $4,062 $— $494 $1,449 $— $267,357 $268,150 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Consumer and other
Pass$33,687 $7,843 $3,800 $1,810 $568 $209 $15,563 $401 $63,881 $47,062 
Special Mention— 22 — — — — 45 — 67 43 
Substandard— 35 110 — 31 4 3 156 339 361 
Doubtful— — — — — — — — — — 
Total consumer and other$33,687 $7,900 $3,910 $1,810 $599 $213 $15,611 $557 $64,287 $47,466 
Current period gross charge-offs$— $290 $— $— $— $— $1 $— $291 
Total loans
Pass$1,354,661 $2,481,658 $1,400,138 $621,225 $443,190 $531,981 $826,264 $55,258 $7,714,375 $7,566,910 
Special Mention10,996 17,364 20,106 16,379 1,534 4,645 6,625 362 78,011 42,175 
Substandard9,835 15,270 39,257 11,895 21,602 19,536 10,304 5,000 132,699 145,612 
Doubtful48 — — — — — — — 48 54 
Total loans$1,375,540 $2,514,292 $1,459,501 $649,499 $466,326 $556,162 $843,193 $60,620 $7,925,133 $7,754,751 
Total current period gross charge-offs$— $839 $4,009 $796 $280 $23 $4,194 $2,275 $12,416 
Allowance for Credit Losses on Financing Receivables
The following table presents the activity in the allowance for credit losses on loans by portfolio type for the years ended December 31, 2023, 2022 and 2021:
Commercial
and industrial		 Paycheck Protection
Program (PPP)		 Commercial real estate
(including multi-family
residential)		 Commercial real estate
construction and land
development		 1-4 family residential
(including
home equity)		 Residential
construction		 Consumer
and other		 Total
(In thousands)
Allowance for credit losses on loans:
Balance December 31, 2022
$41,236 $— $32,970 $14,121 $2,709 $1,796 $348 $93,180 
Provision for credit losses on loans120 — 5,201 (494)3,592 827 379 9,625 
Charge-offs(10,600)— — — (1,525)— (291)(12,416)
Recoveries1,223 — 16 — 9 — 47 1,295 
Net charge-offs(9,377)— 16 — (1,516)— (244)(11,121)
Balance December 31, 2023
$31,979 $— $38,187 $13,627 $4,785 $2,623 $483 $91,684 
Allowance for credit losses on loans:
Balance December 31, 2021
$16,629 $— $23,143 $6,263 $847 $975 $83 $47,940 
Allowance on PCD loans4,559 — 1,040 173 1,563 7 216 7,558 
Provision for credit losses on loans26,175 — 9,013 7,698 304 814 28 44,032 
Charge-offs(7,461)— (400)(72)(57)— (66)(8,056)
Recoveries1,334 — 174 59 52 — 87 1,706 
Net charge-offs(6,127)— (226)(13)(5)— 21 (6,350)
Balance December 31, 2022
$41,236 $— $32,970 $14,121 $2,709 $1,796 $348 $93,180 
Allowance for credit losses on loans:
Balance December 31, 2020
$17,738 $— $23,934 $6,939 $3,279 $870 $413 $53,173 
Provision for credit losses on loans306 — 66 (676)(2,411)105 (313)(2,923)
Charge-offs(1,579)— (857)— (21)— (24)(2,481)
Recoveries164 — — — — — 7 171 
Net charge-offs(1,415)— (857)— (21)— (17)(2,310)
Balance December 31, 2021
$16,629 $— $23,143 $6,263 $847 $975 $83 $47,940 
Summary of Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Expected Credit Losses
The following tables present the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses as of December 31, 2023 and 2022:
December 31, 2023
Real EstateBusiness AssetsOtherTotal
(In thousands)
Commercial and industrial$— $70 $— $70 
Paycheck Protection Program (PPP)— — — — 
Real estate:
Commercial real estate (including multi-family residential)5,548 — — 5,548 
Commercial real estate construction and land development437 — — 437 
1-4 family residential (including home equity)424 — — 424 
Residential construction— — — — 
Consumer and other— — — — 
Total$6,409 $70 $— $6,479 
December 31, 2022
Real EstateBusiness AssetsOtherTotal
(In thousands)
Commercial and industrial$— $18,411 $30 $18,441 
Paycheck Protection Program (PPP)— — — — 
Real estate:
Commercial real estate (including multi-family residential)1,612 — — 1,612 
Commercial real estate construction and land development— — — — 
1-4 family residential (including home equity)3,478 — — 3,478 
Residential construction— — — — 
Consumer and other— — — — 
Total$5,090 $18,411 $30 $23,531 
Summary of Nonaccrual Loans
The following table presents additional information regarding nonaccrual loans. No interest income was recognized on nonaccrual loans for the years ended December 31, 2023 and 2022, respectively.
December 31, 2023
Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total Nonaccrual Loans
(In thousands)
Commercial and industrial$1,616 $3,432 $5,048 
Paycheck Protection Program (PPP)— — — 
Real estate:
Commercial real estate (including multi-family residential)11,844 4,855 16,699 
Commercial real estate construction and land development5,043 — 5,043 
1-4 family residential (including home equity)7,400 1,474 8,874 
Residential construction3,288 — 3,288 
Consumer and other54 185 239 
Total loans$29,245 $9,946 $39,191 
December 31, 2022
Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total Nonaccrual Loans
(In thousands)
Commercial and industrial$2,776 $22,521 $25,297 
Paycheck Protection Program (PPP)105 — 105 
Real estate:
Commercial real estate (including multi-family residential)8,704 1,266 9,970 
Commercial real estate construction and land development— — — 
1-4 family residential (including home equity)4,856 4,548 9,404 
Residential construction— — — 
Consumer and other94 178 272 
Total loans$16,535 $28,513 $45,048 
Troubled Debt Restructurings on Financing Receivables
The following table presents information regarding loans that were modified due to the borrowers experiencing financial difficulty during the year ended December 31, 2023:

Year Ended December 31, 2023
Interest Rate ReductionTerm ExtensionPayment DelayPrincipal ForgivenessCombination Term Extension and Principal ForgivenessCombination Term Extension and Interest Rate ReductionTotal
(In thousands)
Commercial and industrial$— $2,600 $— $— $— $308 $2,908 
Real estate:
Commercial real estate (including multi-family residential)
—2,8881,917——1,6966,501
Commercial real estate construction and land development
—7,103————7,103
1-4 family residential (including home equity)
—1,108225——701,403
Residential construction——————
Consumer and other—92———92
Total$— $13,791 $2,142 $— $— $2,074 $18,007 

The following table summarizes, by loan portfolio, the financial effect of the Company's loan modifications for the year ended December 31, 2023:
Weighted-Average Interest Rate ReductionWeighted-Average Term Extension
(Months)
Commercial and industrial— %12
Real estate:
Commercial real estate (including multi-family residential)
— %48
Commercial real estate construction and land development
— %12
1-4 family residential (including home equity)
— %19
Residential construction— %—
Consumer and other1.5 %7
The following table summarizes loans that had a payment default, determined as 90 or more days past due, within the past twelve months that were modified due to the borrowers experiencing financial difficulty during the year ended December 31, 2023:
Twelve Months Ended December 31, 2023
Interest Rate ReductionTerm ExtensionPayment DelayPrincipal forgiveness
In thousands
Commercial and industrial$— $640 $— $— 
Real estate:
Commercial real estate (including multi-family residential)
————
Commercial real estate construction and land development
————
1-4 family residential (including home equity)
—70999—
Residential construction————
Consumer and other—92——
Total$— $1,441 $99 $— 
The following table presents information regarding loans modified in a TDR during the years ended December 31, 2022 and 2021:
December 31,
2022 2021
Number of
Contracts		Pre-Modification of Outstanding Recorded
Investment		Post
Modification of
Outstanding
Recorded
Investment		Number of
Contracts		Pre-Modification of Outstanding Recorded
Investment		Post Modification of Outstanding Recorded
Investment
(In thousands)
Commercial and industrial14 $8,859 $8,859 9 $2,891 $2,891 
Paycheck Protection Program (PPP)— — — — — — 
Real estate:
Commercial real estate (including multi-family residential)7 2,805 2,816 1 545 545 
Commercial real estate construction and land development— — — — — — 
1-4 family residential (including home equity)1 176 176 — — — 
Residential construction— — — — — — 
Consumer and other1 45 45 — — — 
Total23 $11,885 $11,896 10 $3,436 $3,436