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LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)
 9 Months Ended
Sep. 30, 2024
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 made to borrowers located within Texas, and segregated by class of loan were as follows:
September 30, 2024December 31, 2023
(In thousands)
Commercial and industrial$1,347,876 $1,409,002 
Paycheck Protection Program (PPP)2,877 5,100 
Real estate:
Commercial real estate (including multi-family residential)3,976,296 4,071,807 
Commercial real estate construction and land development890,316 1,060,406 
1-4 family residential (including home equity)1,112,235 1,047,174 
Residential construction161,494 267,357 
Consumer and other60,030 64,287 
Total loans7,551,124 7,925,133 
Allowance for credit losses on loans(84,501)(91,684)
Loans, net$7,466,623 $7,833,449 
Schedule of Past Due Financing Receivables
An aging analysis of past due loans, segregated by class of loans, is included below.
September 30, 2024
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$4,817 $— $4,817 $9,712 $1,333,347 $1,347,876 
Paycheck Protection Program (PPP)14 — 14 6 2,857 2,877 
Real estate:
Commercial real estate (including
     multi-family residential)
14,917 — 14,917 10,695 3,950,684 3,976,296 
Commercial real estate construction
    and land development
2,558 — 2,558 4,183 883,575 890,316 
1-4 family residential (including
    home equity)
4,451 — 4,451 7,259 1,100,525 1,112,235 
Residential construction5,546 — 5,546 121 155,827 161,494 
Consumer and other99 — 99 164 59,767 60,030 
Total loans$32,402 $— $32,402 $32,140 $7,486,582 $7,551,124 
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 development
7,341 — 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 
Schedule of Financing Receivable Credit Quality Indicators
The following table presents risk ratings by category and the gross charge-offs by primary loan type and year of origination or renewal. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period
originations for purposes of the table below. The following summarizes the amortized cost basis of loans by year of origination/renewal and credit quality indicator by class of loan as of September 30, 2024 and December 31, 2023:
September 30, 2024December 31, 2023
Term Loans Amortized Cost Basis by Origination YearRevolving
Loans		Revolving Loans
Converted to Term Loans		TotalTotal
20242023202220212020Prior
(In thousands)
Commercial and industrial
Pass$204,235 $237,416 $172,538 $129,491 $27,316 $22,057 $463,532 $52,523 $1,309,108 $1,377,118 
Special Mention1,316 1,297 2,546 618 132 780 2,721 1,923 11,333 8,340 
Substandard1,207 1,290 4,145 897 402 10,684 2,951 5,816 27,392 23,496 
Doubtful— 43 — — — — — — 43 48 
Total commercial and industrial
    loans
$206,758 $240,046 $179,229 $131,006 $27,850 $33,521 $469,204 $60,262 $1,347,876 $1,409,002 
Current period gross charge-offs$— $1,207 $570 $305 $174 $46 $410 $2,218 $4,930 
Paycheck Protection Program (PPP)
Pass$— $— $— $1,715 $1,162 $— $— $— $2,877 $5,100 
Special Mention— — — — — — — — — — 
Substandard— — — — — — — — — — 
Doubtful— — — — — — — — — — 
Total PPP loans$— $— $— $1,715 $1,162 $— $— $— $2,877 $5,100 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Commercial real estate
    (including multi-family residential)
Pass$326,262 $404,440 $1,337,966 $753,748 $364,426 $471,694 $108,888 $21,454 $3,788,878 $3,959,675 
Special Mention16,867 6,647 37,010 18,064 27,680 18,400 2,285 1,389 128,342 54,483 
Substandard803 10,517 7,807 23,057 4,852 10,134 1,906 — 59,076 57,649 
Doubtful— — — — — — — — — — 
Total commercial real estate
    (including multi-family
    residential) loans
$343,932 $421,604 $1,382,783 $794,869 $396,958 $500,228 $113,079 $22,843 $3,976,296 $4,071,807 
Current period gross charge-offs$— $— $— $541 $245 $— $— $— $786 
Commercial real estate construction
    and land development
Pass$162,490 $198,998 $330,380 $75,628 $12,395 $8,595 $51,948 $11,187 $851,621 $1,032,789 
Special Mention2,115 5,372 7,026 5,495 — 1,642 6,963 — 28,613 9,737 
Substandard3,992 4,325 833 — — 79 310 543 10,082 17,880 
Doubtful— — — — — — — — — — 
Total commercial real estate
    construction and land development
$168,597 $208,695 $338,239 $81,123 $12,395 $10,316 $59,221 $11,730 $890,316 $1,060,406 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
September 30, 2024December 31, 2023
Term Loans Amortized Cost Basis by Origination YearRevolving LoansRevolving Loans
Converted to Term Loans
20242023202220212020PriorTotalTotal
(In thousands)
1-4 family residential (including
    home equity)
Pass$100,678 $164,149 $289,962 $202,768 $104,403 $113,166 $87,228 $11,404 $1,073,758 $1,011,743 
Special Mention1,262 1,671 1,835 3,272 1,764 1,390 — 443 11,637 5,384 
Substandard2,333 2,491 1,381 3,279 1,709 5,719 3,827 6,101 26,840 30,047 
Doubtful— — — — — — — — — — 
Total 1-4 family residential
    (including home equity)
$104,273 $168,311 $293,178 $209,319 $107,876 $120,275 $91,055 $17,948 $1,112,235 $1,047,174 
Current period gross charge-offs$— $— $— $— $2 $— $— $— $2 
Residential construction
Pass$73,865 $68,890 $12,338 $— $— $— $177 $— $155,270 $264,069 
Special Mention— 321 — — — — — — 321 — 
Substandard5,782 121 — — — — — — 5,903 3,288 
Doubtful— — — — — — — — — — 
Total residential construction$79,647 $69,332 $12,338 $— $— $— $177 $— $161,494 $267,357 
Current period gross charge-offs$— $— $— $— $— $— $— $— $— 
Consumer and other
Pass
$27,596 $9,147 $3,820 $1,853 $693 $411 $14,561 $1,654 $59,735 $63,881 
Special Mention— — 21 16 — — — — 37 67 
Substandard86 28 70 21 — — 2 51 258 339 
Doubtful— — — — — — — — — — 
Total consumer and other$27,682 $9,175 $3,911 $1,890 $693 $411 $14,563 $1,705 $60,030 $64,287 
Current period gross charge-offs$— $10 $— $4 $— $30 $— $93 $137 
Total loans
Pass$895,126 $1,083,040 $2,147,004 $1,165,203 $510,395 $615,923 $726,334 $98,222 $7,241,247 $7,714,375 
Special Mention21,560 15,308 48,438 27,465 29,576 22,212 11,969 3,755 180,283 78,011 
Substandard14,203 18,772 14,236 27,254 6,963 26,616 8,996 12,511 129,551 132,699 
Doubtful— 43 — — — — — — 43 48 
Total loans$930,889 $1,117,163 $2,209,678 $1,219,922 $546,934 $664,751 $747,299 $114,488 $7,551,124 $7,925,133 
Current period gross charge-offs$— $1,217 $570 $850 $421 $76 $410 $2,311 $5,855 
Schedule of 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 three and nine months ended September 30, 2024 and 2023:
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:
Three Months Ended
Balance June 30, 2024$38,776 $— $35,897 $12,511 $5,230 $1,963 $395 $94,772 
(Reversal of) provision for credit losses on loans
(5,101)— (245)(480)(177)(384)49 (6,338)
Charge-offs(4,120)— (259)— (2)— (32)(4,413)
Recoveries451 — 26 — — — 3 480 
Net charge-offs(3,669)— (233)— (2)— (29)(3,933)
Balance September 30, 2024$30,006 $— $35,419 $12,031 $5,051 $1,579 $415 $84,501 
Nine Months Ended
Balance December 31, 2023$31,979 $— $38,187 $13,627 $4,785 $2,623 $483 $91,684 
(Reversal of) provision for credit losses on loans
1,791 — (2,008)(1,596)262 (1,044)58 (2,537)
Charge-offs(4,930)— (786)— (2)— (137)(5,855)
Recoveries1,166 — 26 — 6 — 11 1,209 
Net charge-offs(3,764)— (760)— 4 — (126)(4,646)
Balance September 30, 2024$30,006 $— $35,419 $12,031 $5,051 $1,579 $415 $84,501 
Three Months Ended
Balance June 30, 2023$38,505 $— $38,963 $14,500 $4,757 $3,080 $390 $100,195 
Provision for credit losses on loans
2,173 — 58 (791)34 (221)243 1,496 
Charge-offs(8,169)— — — — — (7)(8,176)
Recoveries55 — 2 — — — 3 60 
Net charge-offs(8,114)— 2 — — — (4)(8,116)
Balance September 30, 2023$32,564 $— $39,023 $13,709 $4,791 $2,859 $629 $93,575 
Nine Months Ended
Balance December 31, 2022$41,236 $— $32,970 $14,121 $2,709 $1,796 $348 $93,180 
Provision for credit losses on loans
(143)— 6,037 (412)2,096 1,063 298 8,939 
Charge-offs(9,653)— — — (23)— (45)(9,721)
Recoveries1,124 — 16 — 9 — 28 1,177 
Net charge-offs(8,529)— 16 — (14)— (17)(8,544)
Balance September 30, 2023$32,564 $— $39,023 $13,709 $4,791 $2,859 $629 $93,575 
Schedule of Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Expected Credit Losses
The following tables present the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses as of September 30, 2024 and December 31, 2023:
September 30, 2024
Real EstateBusiness AssetsOtherTotal
(In thousands)
Commercial and industrial$— $6,483 $— $6,483 
Real estate:
Commercial real estate (including multi-family residential)9,038 — — 9,038 
Commercial real estate construction and land development4,183 — — 4,183 
1-4 family residential (including home equity)7,259 — — 7,259 
Residential construction— — — — 
Consumer and other— — 86 86 
Total$20,480 $6,483 $86 $27,049 
December 31, 2023
Real EstateBusiness AssetsOtherTotal
(In thousands)
Commercial and industrial$— $70 $— $70 
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 
Schedule of Nonaccrual Loans
The following tables present additional information regarding nonaccrual loans. No interest income was recognized on nonaccrual loans as of September 30, 2024 and December 31, 2023.
September 30, 2024
Nonaccrual Loans with No Related AllowanceNonaccrual Loans with Related AllowanceTotal Nonaccrual Loans
(In thousands)
Commercial and industrial$4,826 $4,886 $9,712 
Paycheck Protection Program (PPP)6 — 6 
Real estate:
Commercial real estate (including multi-family residential)8,773 1,922 10,695 
Commercial real estate construction and land development79 4,104 4,183 
1-4 family residential (including home equity)5,509 1,750 7,259 
Residential construction— 121 121 
Consumer and other86 78 164 
Total loans$19,279 $12,861 32,140 
 December 31, 2023
Nonaccrual Loans with No Related AllowanceNonaccrual Loans with Related AllowanceTotal 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 $39,191 
Schedule of Troubled Debt Restructurings on Financing Receivables
The following tables present information regarding loans that were modified due to the borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30, 2024
Interest Rate ReductionTerm ExtensionPayment DelayPrincipal ForgivenessCombination Term Extension and Principal ForgivenessCombination Term Extension and Payment Delay Total
(In thousands)
Commercial and industrial$— $1,021 $— $— $— $559 $1,580 
Real estate:
Commercial real estate (including multi-family residential)
———————
Commercial real estate construction and land development
—7551,428———2,183
1-4 family residential (including home equity)
—————499499
Residential construction————
Consumer and other———————
Total$— $1,776 $1,428 $— $— $1,058 $4,262 
Nine Months Ended September 30, 2024
Interest Rate ReductionTerm ExtensionPayment DelayPrincipal ForgivenessCombination Term Extension and Principal ForgivenessCombination Term Extension and Payment DelayTotal
(In thousands)
Commercial and industrial$— $1,171 $807 $— $— $1,423 $3,401 
Real estate:
Commercial real estate (including multi-family residential)
——1,720——1,4823,202
Commercial real estate construction and land development
—2,7811,428——2,4156,624
1-4 family residential (including home equity)
——1,040——4991,539
Residential construction—236———236
Consumer and other———————
Total$— $4,188 $4,995 $— $— $5,819 $15,002 
Three Months Ended September 30, 2023
Interest Rate ReductionTerm ExtensionPayment DelayPrincipal ForgivenessCombination Term Extension and Principal ForgivenessCombination Term Extension and Payment DelayTotal
(In thousands)
Commercial and industrial$— $— $— $— $— $— $— 
Real estate:
Commercial real estate (including multi-family residential)
—1,890————1,890
Commercial real estate construction and land development
———————
1-4 family residential (including home equity)
—32299——71492
Residential construction———————
Consumer and other———————
Total$— $2,212 $99 $— $— $71 $2,382 

Nine Months Ended September 30, 2023
Interest Rate ReductionTerm ExtensionPayment DelayPrincipal ForgivenessCombination Term Extension and Principal ForgivenessCombination Term Extension and Payment DelayTotal
(In thousands)
Commercial and industrial$89 $2,185 $— $— $— $260 $2,534 
Real estate:
Commercial real estate (including multi-family residential)
—2,670———1,7034,373
Commercial real estate construction and land development
—6,850————6,850
1-4 family residential (including home equity)
—1,03799——711,207
Residential construction———————
Consumer and other—94————94
Total$89 $12,836 $99 $— $— $2,034 $15,058 
The following table summarizes, by loan portfolio, the financial effect of the Company’s loan modifications for the periods indicated:
Three Months Ended September 30, 2024Three Months Ended September 30, 2023
Weighted-Average Term ExtensionWeighted-Average Interest Rate ReductionWeighted-Average Term ExtensionWeighted-Average Interest Rate Reduction
(months)(months)
Commercial and industrial60.0 %—0.0 %
Real estate:
Commercial real estate (including multi-family residential)
—0.0 %60.0 %
Commercial real estate construction and land development
200.0 %—0.0 %
1-4 family residential (including home equity)
—0.0 %241.5 %
Residential construction—0.0 %—0.0 %
Consumer and other—0.0 %—0.0 %
Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
Weighted-Average Term ExtensionWeighted-Average Interest Rate ReductionWeighted-Average Term ExtensionWeighted-Average Interest Rate Reduction
(months)(months)
Commercial and industrial60.0 %122.0 %
Real estate:
Commercial real estate (including multi-family residential)
—0.0 %90.0 %
Commercial real estate construction and land development
90.0 %120.0 %
1-4 family residential (including home equity)
—0.0 %161.5 %
Residential construction60.0 %—0.0 %
Consumer and other—0.0 %70.0 %
The following table summarizes modified loans that had a payment default, determined as 90 or more days past due, within the past twelve months that were modified due to the borrowers experiencing financial difficulty during the periods indicated:
Twelve Months Ended September 30, 2024Twelve Months Ended September 30, 2023
Term ExtensionPayment DelayInterest Rate ReductionTerm ExtensionPayment DelayInterest Rate Reduction
(In thousands)
Commercial and industrial$— $807 $— $670 $— $89 
Real estate:
Commercial real estate (including multi-family residential)
——————
Commercial real estate construction and land development
1,668—————
1-4 family residential (including home equity)
—655—71599—
Residential construction——————
Consumer and other——————
$1,668 $1,462 $— $1,385 $99 $89