0001466026-21-000003 | 10-K | XBRL Viewer | Midland States Bancorp INC

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Cover - USD ($)	12 Months Ended
Cover - USD ($)	Dec. 31, 2020	Feb. 16, 2021	Jun. 30, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-35272
Entity Registrant Name	MIDLAND STATES BANCORP, INC.
Entity Incorporation, State or Country Code	IL
Entity Tax Identification Number	37-1233196
Entity Address, Address Line One	1201 Network Centre Drive
Entity Address, City or Town	Effingham
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	62401
City Area Code	217
Local Phone Number	342-7321
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	MSBI
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 324,060,514
Entity Common Stock, Shares Outstanding (in shares)		22,275,886
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Portions of the Proxy Statement for the Annual Meeting of Shareholders to be held May 3, 2021, to be filed within 120 days after December 31, 2020, are incorporated by reference into Part III of this Form 10-K to the extent indicated in such part.
Entity Central Index Key	0001466026
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Security Exchange Name	NASDAQ

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 337,080	$ 392,694
Federal funds sold	4,560	1,811
Cash and cash equivalents	341,640	394,505
Investment securities available for sale, at fair value (allowance for credit losses of $366 at December 31, 2020)	676,711	649,433
Equity securities, at fair value	9,424	5,621
Loans	5,103,331	4,401,410
Allowance for credit losses on loans	(60,443)	(28,028)
Total loans, net	5,042,888	4,373,382
Loans held for sale	138,090	16,431
Premises and equipment, net	74,124	91,055
Operating lease right-of-use assets	9,177	14,224
Other real estate owned	20,247	6,745
Nonmarketable equity securities	56,596	44,505
Accrued interest receivable	23,545	16,346
Loan servicing rights, at lower of cost or fair value	39,276	53,824
Goodwill	161,904	171,758
Other intangible assets, net	28,382	34,886
Cash surrender value of life insurance policies	146,004	142,423
Other assets	100,532	71,879
Total assets	6,868,540	6,087,017
Deposits:
Noninterest-bearing	1,469,579	1,019,472
Interest-bearing	3,631,437	3,524,782
Total deposits	5,101,016	4,544,254
Short-term borrowings	68,957	82,029
FHLB advances and other borrowings	779,171	493,311
Subordinated debt	169,795	176,653
Trust preferred debentures	48,814	48,288
Operating lease liabilities	11,958	15,369
Other liabilities	67,438	65,202
Total liabilities	6,247,149	5,425,106
Shareholders’ Equity:
Common stock, $0.01 par value; 40,000,000 shares authorized; 22,325,471 and 24,420,345 shares issued and outstanding at December 31, 2020 and 2019, respectively	223	244
Capital surplus	453,410	488,305
Retained earnings	156,327	165,920
Accumulated other comprehensive income	11,431	7,442
Total shareholders’ equity	621,391	661,911
Total liabilities and shareholders’ equity	$ 6,868,540	$ 6,087,017

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 366
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	22,325,471	24,420,345
Common stock, shares outstanding (in shares)	22,325,471	24,420,345

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Loans:
Taxable	$ 217,459	$ 218,416	$ 194,688
Tax exempt	3,110	3,593	3,327
Loans held for sale	1,881	1,375	1,749
Investment securities:
Taxable	14,789	14,690	13,894
Tax exempt	3,532	4,098	4,553
Nonmarketable equity securities	2,638	2,395	1,980
Federal funds sold and cash investments	1,479	4,951	3,176
Total interest income	244,888	249,518	223,367
Interest expense:
Deposits	21,498	34,194	22,054
Short-term borrowings	178	835	698
FHLB advances and other borrowings	12,033	13,935	11,347
Subordinated debt	9,730	7,404	6,056
Trust preferred debentures	2,313	3,335	3,125
Total interest expense	45,752	59,703	43,280
Net interest income	199,136	189,815	180,087
Provision for credit losses:
Provision for credit losses on loans	43,149	16,985	9,430
Provision for credit losses on unfunded commitments	846	0	0
Provision for other credit losses	366	0	0
Total provision for credit losses	44,361	16,985	9,430
Net interest income after provision for credit losses	154,775	172,830	170,657
Noninterest income:
Wealth management revenue	22,802	21,832	20,513
Commercial FHA revenue	6,007	15,309	10,531
Residential mortgage banking revenue	9,812	2,928	5,729
Service charges on deposit accounts	8,603	11,027	10,440
Interchange revenue	12,266	11,992	10,674
Gain on sales of investment securities, net	1,721	674	464
(Impairment) recapture on commercial mortgage servicing rights	(12,337)	(2,139)	449
Bank owned life insurance	3,581	3,640	4,288
Other income	8,794	10,019	8,703
Total noninterest income	61,249	75,282	71,791
Noninterest expense:
Salaries and employee benefits	85,557	91,906	97,410
Occupancy and equipment	17,552	18,811	18,994
Data processing	22,643	21,390	25,691
Professional	7,234	8,783	12,789
Marketing	3,498	3,927	4,757
Communications	4,052	3,693	5,010
Amortization of intangible assets	6,504	7,090	6,956
Loss (gain) on mortgage servicing rights held for sale	1,692	(490)	458
Impairment related to facilities optimization	12,847	3,577	0
FHLB advances prepayment fees	4,872	0	0
Other expense	17,559	16,954	19,578
Total noninterest expense	184,010	175,641	191,643
Income before income taxes	32,014	72,471	50,805
Income taxes	9,477	16,687	11,384
Net income	22,537	55,784	39,421
Preferred stock dividends and premium amortization	0	46	141
Net income available to common shareholders	$ 22,537	$ 55,738	$ 39,280
Per common share data:
Basic earnings per common share (in dollars per share)	$ 0.95	$ 2.28	$ 1.69
Diluted earnings per share (in dollars per share)	$ 0.95	$ 2.26	$ 1.66
Weighted average common shares outstanding (in shares)	23,336,881	24,288,793	23,130,475
Weighted average diluted common shares outstanding (in shares)	23,346,126	24,493,431	23,549,025

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 22,537	$ 55,784	$ 39,421
Investment securities available for sale:
Unrealized gains (losses) that occurred during the period	6,454	13,847	(4,845)
Provision for credit loss expense	366	0	0
Reclassification adjustment for realized net gains on sales of investment securities included in net income	(1,721)	(674)	(464)
Income tax effect	(1,402)	(3,623)	1,443
Change in investment securities available for sale, net of tax	3,697	9,550	(3,866)
Cash flow hedges:
Net unrealized derivative gains on cash flow hedges	403	0	0
Income tax effect	(111)	0	0
Change in cash flow hedges, net of tax	292	0	0
Other comprehensive income (loss), net of tax	3,989	9,550	(3,866)
Total comprehensive income	$ 26,526	$ 65,334	$ 35,555

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Adjustment	Adjusted Balance	Preferred stock	Preferred stock Adjusted Balance	Common stock	Common stock Adjusted Balance	Capital surplus	Capital surplus Adjusted Balance	Retained earnings	Retained earnings Adjustment	Retained earnings Adjusted Balance	Accumulated other comprehensive (loss) income	Accumulated other comprehensive (loss) income Adjusted Balance	Alpine Bank	Alpine Bank Common stock	Alpine Bank Capital surplus	HomeStar Bank	HomeStar Bank Common stock	HomeStar Bank Capital surplus
Beginning balance at Dec. 31, 2017	$ 449,545			$ 2,970		$ 191		$ 330,148		$ 114,478			$ 1,758
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	39,421									39,421
Other comprehensive income (loss)	(3,866)												(3,866)
Acquisition during period															$ 139,921	$ 45	$ 139,876
Preferred dividends declared	(330)									(330)
Preferred stock, premium amortization	189			(189)						189
Common dividends declared	(19,977)									(19,977)
Share-based compensation expense	1,533							1,533
Issuance of common stock under employee benefit plans	2,278					2		2,276
Ending balance at Dec. 31, 2018	608,525			2,781		238		473,833		133,781			(2,108)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	55,784									55,784
Other comprehensive income (loss)	9,550												9,550
Acquisition during period																		$ 10,339	$ 4	$ 10,335
Preferred dividends declared	(191)									(191)
Preferred stock, premium amortization	145			(145)						145
Redemption of Series H preferred stock	(2,636)			(2,636)
Common dividends declared	(23,599)									(23,599)
Common stock repurchased	(4,019)					(2)		(4,017)
Share-based compensation expense	2,364							2,364
Issuance of common stock under employee benefit plans	5,794					4		5,790
Ending balance at Dec. 31, 2019	661,911		$ 654,739	0	$ 0	244	$ 244	488,305	$ 488,305	165,920		$ 158,748	7,442	$ 7,442
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of change in accounting principles (Note 1)		$ (7,172)									$ (7,172)
Net income	22,537									22,537
Other comprehensive income (loss)	3,989												3,989
Preferred dividends declared	0
Preferred stock, premium amortization	0
Common dividends declared	(24,958)									(24,958)
Common stock repurchased	(39,615)					(23)		(39,592)
Share-based compensation expense	2,175							2,175
Issuance of common stock under employee benefit plans	2,524					2		2,522
Ending balance at Dec. 31, 2020	$ 621,391			$ 0		$ 223		$ 453,410		$ 156,327			$ 11,431

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Stockholders' Equity [Abstract]
Common dividend declared (in dollars per share)	$ 1.07	$ 0.97	$ 0.88

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income	$ 22,537	$ 55,784	$ 39,421
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	44,361	16,985	9,430
Depreciation on premises and equipment	6,942	6,583	6,166
Amortization of intangible assets	6,504	7,090	6,956
Amortization of operating lease right-of-use asset	2,547	2,937	0
Amortization of loan servicing rights	3,518	2,820	2,949
Share-based compensation expense	2,175	2,364	1,533
Increase in cash surrender value of life insurance	(3,581)	(3,640)	(3,579)
Investment securities amortization, net	3,411	3,757	3,898
Gain on sales of investment securities, net	(1,721)	(674)	(464)
Gain on sales of other real estate owned	(78)	(185)	(544)
Impairment on other real estate owned	1,390	16	301
Origination of loans held for sale	(786,203)	(504,973)	(557,305)
Proceeds from sales of loans held for sale	1,218,950	949,745	590,282
Gain on loans sold and held for sale	(14,071)	(15,082)	(11,165)
Impairment (recapture) on commercial mortgage servicing rights	12,337	2,139	(449)
Loss (gain) on mortgage servicing rights held for sale	1,692	(490)	458
Impairment related to facilities optimization	12,847	3,577	0
Gain on proceeds from bank-owned life insurance	0	0	(709)
Net change in operating assets and liabilities:
Accrued interest receivable	(7,199)	1,399	(431)
Other assets	(31,961)	(4,701)	(5,745)
Accrued expenses and other liabilities	4,750	13,202	16,090
Net cash provided by operating activities	499,147	538,653	97,093
Cash flows from investing activities:
Purchases of investment securities available for sale	(266,514)	(200,231)	(76,289)
Proceeds from sales of investment securities available for sale	28,256	33,464	20,178
Maturities and payments on investment securities available for sale	214,036	239,760	131,220
Purchases of equity securities	(3,345)	(82)	(59)
Proceeds from sales of equity securities	0	105	7,733
Net increase in loans	(1,279,913)	(505,501)	(131,114)
Proceeds from sale of commercial FHA origination platform	7,502	0	0
Purchases of premises and equipment	(2,589)	(5,538)	(7,200)
Purchases of nonmarketable equity securities	(12,091)	(14,263)	(20,737)
Proceeds from sales of nonmarketable equity securities	0	12,684	15,099
Proceeds from sales of mortgage servicing rights held for sale	0	3,288	12,994
Proceeds from sales of other real estate owned	2,225	1,647	3,879
Proceeds from settlements of bank-owned life insurance	0	0	1,449
Net cash acquired in acquisitions	0	69,879	36,153
Net cash used in investing activities	(1,312,433)	(364,788)	(6,694)
Cash flows from financing activities:
Net increase (decrease) in deposits	556,762	148,344	(168,049)
Net decrease in short-term borrowings	(13,072)	(42,206)	(31,891)
Proceeds from FHLB borrowings	729,000	360,000	1,017,080
Payments made on FHLB borrowings and other borrowings	(447,832)	(515,047)	(891,012)
FHLB advances prepayment fees	4,872	0	0
Proceeds from issuance of subordinated debt, net of issuance costs	0	98,265	0
Payments made on subordinated debt	(7,443)	(19,543)	0
Subordinated debt prepayment fees	193	1,778	0
Cash dividends paid on preferred stock	0	(191)	(330)
Redemption of preferred stock	(10)	(2,636)	0
Cash dividends paid on common stock	(24,958)	(23,599)	(19,977)
Common stock repurchased	(39,615)	(4,019)	0
Proceeds from issuance of common stock under employee benefit plans	2,524	5,794	2,278
Net cash provided by (used in) financing activities	760,421	6,940	(91,901)
Net (decrease) increase in cash and cash equivalents	(52,865)	180,805	(1,502)
Cash and cash equivalents:
Beginning of period	394,505	213,700	215,202
End of period	$ 341,640	$ 394,505	$ 213,700

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Midland States Bancorp, Inc. (the “Company,” “we,” “our,” or “us”) is a diversified financial holding company headquartered in Effingham, Illinois. Our wholly-owned banking subsidiary, Midland States Bank, has branches across Illinois and in Missouri, and provides a full range of commercial and consumer banking products and services, business equipment financing, merchant credit card services, trust and investment management services, and insurance and financial planning services.

In addition, we provided multifamily and healthcare facility Federal Housing Administration (“FHA”) financing through Love Funding Corporation, our non-bank subsidiary. On August 28, 2020, the Company announced that it had completed the sale of its commercial FHA origination platform to Dwight Capital, a nationwide mortgage banking firm headquartered in New York. The Bank continues to service Love Funding's current servicing portfolio of approximately $3.50 billion.

Our principal business activity has been lending to and accepting deposits from individuals, businesses, municipalities and other entities. We have derived income principally from interest charged on loans and, to a lesser extent, from interest and dividends earned on investment securities. We have also derived income from noninterest sources, such as: fees received in connection with various lending and deposit services; wealth management services; commercial FHA mortgage loan servicing; residential mortgage loan originations, sales and servicing; and, from time to time, gains on sales of assets. Our principal expenses include interest expense on deposits and borrowings, operating expenses, such as salaries and employee benefits, occupancy and equipment expenses, data processing costs, professional fees and other noninterest expenses, provisions for credit losses and income tax expense.

Basis of Presentation

The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. Management of the Company has made a number of estimates and assumptions related to the reporting of assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. Actual results may differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of the results of operations for annual periods presented herein, have been included. Certain reclassifications of 2019 and 2018 amounts have been made to conform to the 2020 presentation but do not have an effect on net income or shareholders’ equity.

Principles of Consolidation

The consolidated financial statements include the accounts of the parent company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Assets held for customers in a fiduciary or agency capacity, other than trust cash on deposit with the Bank, are not assets of the Company and, accordingly, are not included in the accompanying consolidated financial statements.

Subsequent Events

Management has evaluated subsequent events for recognition and disclosure through February 26, 2021, which is the date the financial statements were available to be issued.

Business Combinations

The Company accounts for business combinations under the acquisition method of accounting in accordance with ASC 805, Business Combinations. Under the acquisition method of accounting, tangible and intangible identifiable assets acquired, liabilities assumed and any noncontrolling interests in the acquiree are recorded at fair value as of the acquisition date. The Company includes the results of operations of the acquired company in the consolidated statements of income from the date of acquisition. Transaction costs and costs to restructure the acquired company are expensed as incurred. Goodwill is recognized as the excess of the acquisition price over the estimated fair value of the net assets acquired. If the fair value of the net assets acquired is greater than the acquisition price, a bargain purchase gain is recognized and recorded in noninterest income.

Cash and Cash Equivalents and Cash Flows

For the presentation in the accompanying consolidated statement of cash flows, cash and cash equivalents are defined as cash on hand, amounts due from banks, which includes amounts on deposit with the Federal Reserve, interest-bearing deposits with banks or other financial institutions and federal funds sold. Generally, federal funds are sold for one-day periods, but not longer than 30 days.

The following table summarizes supplemental cash flow information:


	Years Ended December 31,
(dollars in thousands)	2020		2019		2018
Supplemental disclosures of cash flow information:
Cash payments for:
Interest paid on deposits and borrowed funds	$	47,712	$	58,158	$	40,956
Income tax paid, net of refunds	2,977		479		580
Supplemental disclosures of noncash investing and financing activities:
Transfer of investment securities available for sale to equity securities	—		—		2,830
Transfer of loans to loans held for sale	542,060		419,215		—
Transfer of loans to other real estate owned	16,736		3,819		1,104
Transfer of premises and equipment, net to assets held for sale	11,344		4,350		—

Investment Securities

The Company classifies its debt investment securities as available for sale or held to maturity at the time of purchase. Securities held to maturity are those debt instruments which the Company has the positive intent and ability to hold until maturity. Securities held to maturity are recorded at cost, adjusted for the amortization of premiums or accretion of discounts. All other debt securities are classified as available for sale. As of December 31, 2020, all investment securities were classified as available for sale. Investment securities available for sale are recorded at fair value with the unrealized gains and losses, net of the related tax effect, included in other comprehensive income. The related accumulated unrealized holding gains and losses are reported as a separate component of shareholders’ equity until realized.

Available-for-sale debt securities in an unrealized loss position are evaluated, at least quarterly, for impairment related to credit losses. The Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, and the present value of cash flows expected to be collected from the security is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recorded in other comprehensive income.

Changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Purchase premiums are amortized over the estimated life or to the earliest call date and purchase discounts are accreted over the estimated life of the related investment security as an adjustment to yield using the effective interest method. Unamortized premiums, unaccreted discounts, and early payment premiums are recognized in interest income upon disposition of the related security. Interest and dividend income are recognized when earned. Realized gains and losses from the sale of investment securities available for sale are determined using the specific identification method and are included in noninterest

income. Also, when applicable, realized gains and losses are reported as a reclassification adjustment, net of tax, in other comprehensive income.

Equity Securities

Investments in stock of a publicly traded company or in mutual funds are classified as equity securities. Equity securities are recorded at fair value with unrealized gains and losses recognized in net income.

Nonmarketable Equity Securities

Nonmarketable equity securities include the Bank’s required investments in the stock of the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“FRB”). The Bank is a member of the FHLB system as well as its regional FRB. Members of the FHLB are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock and FRB stock are both carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are classified as portfolio loans and carried at amortized cost, i.e., the principal balance outstanding, net of purchase premiums and discounts, fair value hedge accounting adjustments, and deferred loan fees and costs. Interest income is accrued on the unpaid principal balance. Accrued interest receivable on loans totaled $19.9 million at December 31, 2020 and was reported in accrued interest receivable on the consolidated balance sheets.

Interest income on mortgage and commercial loans is discontinued and the loan is placed on nonaccrual status at the time the loan is 90 days delinquent unless the loan is well secured and in process of collection. Mortgage loans are charged off at 180 days past due, and commercial loans are charged off to the extent principal or interest is deemed uncollectible. Consumer and credit card loans continue to accrue interest until they are charged off or at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cost-recovery or cash-basis method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Leases. The Company provides financing leases to small businesses for purchases of business equipment. Under the direct financing method of accounting, the minimum lease payments to be received under the lease contract, together with the estimated unguaranteed residual values (approximately 3% to 15% of the cost of the related equipment), are recorded as lease receivables when the lease is signed and the leased property is delivered to the customer. The excess of the minimum lease payments and residual values over the cost of the equipment is recorded as unearned lease income. Unearned lease income is recognized over the term of the lease on a basis that results in an approximately level rate of return on the unrecovered lease investment.

Purchased Credit Deteriorated Loans. The Company has purchased loans, some of which have experienced more than insignificant credit deterioration since origination. PCD loans are recorded at the amount paid. An ACL on loans is determined using the same methodology as other loans held for investment. The initial ACL on loans determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and ACL on loans becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the ACL on loans are recorded through provision expense.

Nonperforming Loans. A loan is considered nonperforming when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Nonperforming loans include loans on nonaccrual status, loans past due 90 days or more and still accruing interest, and performing troubled debt restructured loans. Income from loans on nonaccrual status is recognized to the extent cash is received and when the principal balance is deemed collectible. Depending on a particular loan’s circumstances, we measure impairment based upon either the present value of expected future cash flows discounted at the effective interest rate, the observable market price, or the fair value of the collateral less estimated costs to sell if the loan is collateral dependent. A loan is considered collateral dependent when repayment is based solely on the liquidation of the collateral. Fair value, where possible, is determined by independent appraisals, typically on an annual basis. Between appraisal periods, the fair value may be adjusted based on specific events, such as if deterioration of quality of the

collateral comes to our attention as part of our problem loan monitoring process, or if discussions with the borrower lead us to believe the last appraised value no longer reflects the actual market for the collateral. The impairment amount is charged-off to the allowance if deemed not collectible or is set up as a specific reserve.

Allowance for Credit Losses on Loans

The ACL on loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The amount of the allowance represents management's best estimate of current expected credit losses on loans considering available information, from internal and external sources, relevant to assessing collectibility over the loans' contractual terms, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications. unless either of the following applies: management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company.

Management estimates the allowance balance using relevant information, from internal and external sources, relating to historical credit loss experience, current conditions, and reasonable and supportable forecasts. While historical credit loss experience provides the basis for the estimation of expected credit losses, adjustments to historical loss information may be made for differences in current loan-specific risk characteristics, environmental conditions or other relevant factors. ACL on loans is measured on a collective basis and reflects impairment in groups of loans aggregated on the basis of similar risk characteristics. Loans that do not share risk characteristics are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Expected credit losses for collateral dependent loans, including loans where the borrower is experiencing financial difficulty but foreclosure is not probable, are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.

Credit loss expense related to loans reflects the totality of actions taken on all loans for a particular period including any necessary increases or decreases in the allowance related to changes in credit loss expectations associated with specific loans or pools of loans. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgment, should be charged off. While management utilizes its best judgment and information available, the ultimate appropriateness of the allowance is dependent upon a variety of factors beyond our control, including the performance of our loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications.

In calculating the allowance for credit losses, most loans are segmented into pools based upon similar characteristics and risk profiles. Common characteristics and risk profiles may include internal credit ratings, risk ratings or classification, financial asset type, collateral type, size, industry of the borrower, historical or expected credit loss patterns, and reasonable and supportable forecast periods. For modeling purposes, our loan pools include (i) commercial, (ii) commercial real estate, (iii) construction and land development, (iv) residential real estate, (v) consumer, and (vi) lease financing. We periodically reassess each pool to ensure the loans within the pool continue to share similar characteristics and risk profiles and to determine whether further segmentation is necessary.

The table below identifies the Company’s loan portfolio segments and classes.


Segment						Class
Commercial						Commercial
						Commercial Other
Commercial Real Estate						Commercial Real Estate Non-Owner Occupied
						Commercial Real Estate Owner Occupied
						Multi-Family
						Farmland
Construction and Land Development						Construction and Land Development
Residential Real Estate						Residential First Lien
						Other Residential
Consumer						Consumer
						Consumer Other
Lease Financing						Lease Financing

For each loan pool, we measure expected credit losses over the life of each loan utilizing a combination of models which measure (i) probability of default (“PD”), which is the likelihood that loan will stop performing/default, (ii) loss given default (“LGD”), which is the expected loss rate for loans in default, (iii) assumed prepayment speed, which is the likelihood that a loan will prepay or pay-off prior to maturity, and (iv) exposure at default (“EAD”), which is the estimated outstanding principal balance of the loans upon default, including the expected funding of unfunded commitments outstanding as of the measurement date. For certain commercial loan portfolios, the PD is calculated using a transition matrix to determine the likelihood of a customer’s risk grade migrating from one specified range of risk grades to a different specified range. Expected credit losses are calculated as the product of PD (adjusted for prepayment), LGD and EAD. This methodology builds on default probabilities already incorporated into our risk grading process by utilizing pool-specific historical loss rates to calculate expected credit losses. These pool-specific historical loss rates may be adjusted for current macroeconomic assumptions, as further discussed below, and other factors such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated as of the measurement date. Each time we measure expected credit losses, we assess the relevancy of historical loss information and consider any necessary adjustments to address any differences in asset-specific characteristics.

The measurement of expected credit losses is impacted by loan/borrower attributes and certain macroeconomic variables. Significant loan/borrower attributes utilized in our modeling processes include, among other things, (i) origination date, (ii) maturity date, (iii) payment type, (iv) collateral type and amount, (v) current risk grade, (vi) current unpaid balance and commitment utilization rate, (vii) payment status/delinquency history and (viii) expected recoveries of previously charged-off amounts. Significant macroeconomic variables utilized in our modeling processes include, among other things, (i) US and Illinois Disposable Income and Gross Domestic Product, (ii) selected market interest rates including U.S. Treasury rates and government bond rates, among others, (iii) Consumer Price Index, (iv) commercial and residential property prices in Illinois and the US as a whole, and (v) Illinois Housing Starts and Retail Sales for the State of Illinois and US.

The probability of default and prepayment assumptions were estimated by analyzing internally-sourced data related to historical performance of each loan pool. They are adjusted to reflect the current impact of certain macroeconomic variables as well as their expected changes over a reasonable and supportable forecast period. We have determined that we are reasonably able to forecast the macroeconomic variables used in our modeling processes with an acceptable degree of confidence for a total of two years with the last twelve months of the forecast period encompassing a reversion process whereby the forecasted macroeconomic variables are reverted to their historical mean utilizing a straight line basis. The macroeconomic variables utilized as inputs in our modeling processes were subjected to a variety of analysis procedures and were selected primarily based on statistical relevancy and correlation to our historical credit losses. By reverting these modeling inputs to their historical mean and considering loan/borrower specific attributes, our models are intended to yield a measurement of expected credit losses that reflects our average historical loss rates for periods subsequent to the twelve-month reversion period. The LGD is based on historical recovery averages for each loan pool, adjusted to reflect the current impact of certain macroeconomic variables as well as their expected changes over a two-year forecast period, with the final twelve months of the forecast period encompassing a reversion process, which management considers to be both reasonable and supportable. This same forecast/reversion period is used for all macroeconomic variables used in all of our models.

Management qualitatively adjusts model results for risk factors that are not considered within our modeling processes but are nonetheless relevant in assessing the expected credit losses within our loan pools. These qualitative factor (“Q-Factor”) adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. The various risks that may be considered in making Q-Factor adjustments include, among other things, the impact of (i) changes in lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries, (ii) actual and expected changes in economic and business conditions and developments that affect the collectibility of the loan pools, (iii) changes in the nature and volume of the loan pools and in the terms of the underlying loans, (iv) changes in the experience, ability, and depth of our lending management and staff, (v) changes in volume and severity of past due financial assets, the volume of non-accrual assets, and the volume and severity of adversely classified or graded assets, (vi) changes in the quality of our credit review function, (vii) changes in the value of the underlying collateral for loans that are non-collateral dependent, (viii) the existence, growth, and effect of any concentrations of credit and (ix) other factors such as the regulatory, legal and technological environments; competition; and events such as natural disasters or health pandemics.

In some cases, management may determine that an individual loan exhibits unique risk characteristics which differentiate the loan from other loans within our loan pools. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific allocations of the allowance for credit losses are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other things. A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In such cases, expected credit losses are based on the fair

value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. We reevaluate the fair value of collateral supporting collateral dependent loans on a quarterly basis.

Specific reserves reflect expected credit losses on loans identified for evaluation or individually considered nonperforming. These loans no longer have similar risk characteristics to collectively evaluated loans due to changes in credit risk, borrower circumstances, recognition of write-offs, or cash collections that have been fully applied to principal on the basis of nonaccrual policies. At a minimum, the population of loans subject to individual evaluation include individual loans where it is probable we will be unable to collect all amounts due, according to the original contractual terms. These include, nonaccrual loans with an effective balance greater than $500,000, accruing loans 90 days past due or greater with an effective balance greater than $100,000, specialty lending relationships and other loans as determined by management. ACL for consumer and residential loans are, primarily, determined by meaningful pools of similar loans and are evaluated on a quarterly basis.

The provision for credit losses on loans individually evaluated is recognized on the basis of the present value of expected future cash flows discounted at the effective interest rate, the fair value of collateral adjusted for estimated costs to sell, or the observable market price as of the relevant date. ACL on loans adjustments for estimated costs to sell are not appropriate when the repayment of the collateral-dependent loan is expected from the operation of the collateral.

Loans Held for Sale

Loans held for sale consist of residential and commercial FHA mortgage loans originated with the intent to sell. Loans held for sale are carried at fair value, determined individually, as of the balance sheet date. The Company believes the fair value method better reflects the economic risks associated with these loans. Fair value measurements on loans held for sale are based on quoted market prices for similar loans in the secondary market, market quotes from anticipated sales contracts and commitments, or contract prices from firm sales commitments. The changes in the fair value of loans held for sale are reflected in commercial FHA revenue and residential mortgage banking revenue on the consolidated statements of income.

Mortgage Repurchase Reserve

The Company sells residential mortgage loans to investors in the normal course of business. Residential mortgage loans sold to investors are predominantly conventional residential first lien mortgages originated under our usual underwriting procedures, and are sold on a nonrecourse basis. The Company’s agreements to sell residential mortgage loans usually require general representations and warranties on the underlying loans sold, related to credit information, loan documentation, collateral, and insurability, which if subsequently untrue or breached, could require the Company to indemnify or repurchase certain loans affected. The balance in the repurchase reserve at the balance sheet date reflects the estimated amount of potential loss the Company could incur from repurchasing a loan, as well as loss reimbursements, indemnification, and other “make whole” settlement resolutions. Refer to Note 22 in the consolidated financial statements for additional information on the mortgage repurchase reserve.

Premises and Equipment

Premises, furniture and equipment, and leasehold improvements are stated at cost less accumulated depreciation. Depreciation expense is computed principally on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the asset or the lease term. Estimated useful lives of premises and equipment range from 10 to 40 years and from 3 to 10 years, respectively. Maintenance and repairs are charged to operating expenses as incurred, while improvements that extend the useful life of assets are capitalized and depreciated over the estimated remaining life.

We periodically review the carrying value of our long-lived assets to determine if impairment has occurred or whether changes in circumstances have occurred that would require a revision to the remaining useful life. In making such determination, we evaluate the performance, on an undiscounted basis, of the underlying operations or assets which give rise to such amount.

Operating Lease Right of Use Assets and Liabilities

The Company determines if a lease is present at the inception of an agreement. Operating leases are capitalized at commencement and are discounted using the Company’s FHLB borrowing rate for a similar term borrowing unless the lease defines an implicit rate within the contract.

The operating lease right of use assets represent the Company’s right to use an underlying asset for the lease term, and the operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right of use assets and operating lease liabilities are recognized on the lease commencement date based on the present value of lease payments over the lease term. No significant judgments or assumptions were involved in developing the estimated operating

lease liabilities as the Company’s operating lease liabilities largely represent future rental expenses associated with operating leases and the borrowing rates are based on publicly available interest rates.

Other Real Estate Owned

Other real estate owned (“OREO”) represents properties acquired through foreclosure or other proceedings and is initially recorded at fair value at the date of foreclosure less estimated costs of disposal, which establishes a new cost basis. After foreclosure, OREO is held for sale and is carried at the lower of cost or fair value less estimated costs of disposal. Any write-down to fair value at the time of transfer to OREO is charged to the ACL on loans. Fair value for OREO is based on an appraisal performed upon foreclosure. Property is evaluated regularly to ensure the recorded amount is supported by its fair value less estimated costs to dispose. After the initial foreclosure appraisal, fair value is generally determined by an annual appraisal unless known events warrant adjustments to the recorded value. Revenue from the operations of OREO is included in other income in the consolidated statements of income and expense from the operations of OREO and decreases in valuations are included in other expense in the consolidated statements of income.

Goodwill and Intangible Assets

Goodwill resulting from a business combination is generally determined as the excess of the fair value of consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist that indicate that a goodwill impairment test should be performed.

Other intangible assets, which consist of core deposit and acquired customer relationship intangible assets, are typically amortized over a period ranging from 1 to 20 years using an accelerated method of amortization. On a periodic basis, we evaluate events and circumstances that may indicate a change in the recoverability of the carrying value.

Loan Servicing Rights

When loans are sold with servicing retained, a servicing rights asset is capitalized, which represents the then current fair value of future net cash flows expected to be realized for performing servicing activities. As the Company has not elected to subsequently measure servicing assets under the fair value measurement method, the Company follows the amortization method. Loan servicing rights are amortized in proportion to and over the period of estimated net servicing income, and assessed for impairment at each reporting date. Loan servicing rights are carried at the lower of the initial capitalized amount, net of accumulated amortization, or estimated fair value.

Loan servicing rights do not trade in an active market with readily observable prices. The fair value of loan servicing rights and their sensitivity to changes in interest rates is influenced by the mix of the servicing portfolio and characteristics of each segment of the portfolio. The Company’s servicing portfolio consists of distinct portfolios of government-insured residential and commercial mortgages, conventional residential mortgages and Small Business Administration (“SBA”) loans. The Company periodically evaluates its loan servicing rights asset for impairment. Impairment is assessed based on the fair value of net servicing cash flows at each reporting date using estimated prepayment speeds of the underlying loans serviced and stratifications based on the risk characteristics of the underlying loans. The fair value of our servicing rights is estimated by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration expected mortgage loan prepayment rates, discount rates, servicing costs, replacement reserves and other economic factors which are determined based on current market conditions. A valuation allowance is established, through a charge to earnings. To the extent the amortized cost of the mortgage servicing rights exceeds the estimated fair value by stratification, the Company records an impairment expense and reduces the carrying value of the loan servicing rights.

We recognize revenue from servicing commercial FHA mortgages, residential mortgages and SBA loans as earned based on the specific contractual terms. This revenue, along with amortization of and changes in impairment on servicing rights, is reported in commercial FHA revenue, residential mortgage banking revenue and other noninterest income, respectively, in the consolidated statements of income.

Mortgage Servicing Rights Held for Sale

Mortgage servicing rights held for sale consist of residential mortgage servicing rights that management has committed to a plan to sell and has the ability to sell to a buyer in their present condition. Mortgage servicing rights held for sale are carried at the lower of their carrying value or fair value less estimated costs to sell. Decreases in the valuation of mortgage servicing rights held for sale are included in loss (gain) on mortgage servicing rights held for sale in the consolidated statements of income.

Cash Surrender Value of Life Insurance Policies

We have purchased life insurance policies on the lives of certain officers and key employees and are the owner and beneficiary of the policies. These policies provide an efficient form of funding for long-term retirement and other employee benefits costs. These policies are recorded as cash surrender value of life insurance policies in the consolidated balance sheets at each policy’s respective cash surrender value, adjusted for other charges or other amounts due that are probable at settlement, with changes in value recorded in noninterest income in the consolidated statements of income.

Derivative Financial Instruments

All derivatives are recognized on the consolidated balance sheet as a component of other assets or other liabilities at their fair value. On the date the derivative contract is entered into, the derivative is designated as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability “cash flow” hedge. Changes in the fair value of a derivative that is highly effective as—and that is designated and qualifies as—a cash flow hedge are recorded in accumulated other comprehensive income, until earnings are affected by the variability of cash flows (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings).

We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedged transactions. This process includes linking all derivatives that are designated as cash flow hedges to specific assets and liabilities on the balance sheet or forecasted transactions. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, hedge accounting is prospectively discontinued, as discussed below.

Hedge accounting is prospectively discontinued when (a) it is determined that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item (including forecasted transactions); (b) the derivative expires or is sold, terminated, or exercised; (c) the derivative is no longer designated as a hedge instrument because it is unlikely that a forecasted transaction will occur; or (d) management determines that designation of the derivative as a hedge instrument is no longer appropriate.

When hedge accounting is discontinued because it is probable that a forecasted transaction will not occur, the derivative will continue to be carried on the consolidated balance sheet at its fair value, and gains and losses that were in accumulated other comprehensive income will be recognized immediately in earnings. In all other situations in which hedge accounting is discontinued, the derivative will be carried at its fair value on the consolidated balance sheet, with subsequent changes in its fair value recognized in current-period earnings.

The Company also enters into interest rate lock commitments, which are agreements to originate mortgage loans whereby the interest rate on the loan is determined prior to funding and the customers have locked into that interest rate. Interest rate lock commitments for mortgage loans that will be held for sale are carried at fair value on the consolidated balance sheet with changes in fair value reflected in commercial FHA revenue and residential mortgage banking revenue. The Company also has forward loan sales commitments related to its interest rate lock commitments and its loans held for sale. Forward loan sales commitments that meet the definition of a derivative are recorded at fair value in the consolidated balance sheet with changes in fair value reflected in commercial FHA revenue and residential mortgage banking revenue.

Allowance for Credit Losses on Unfunded Commitments

In the ordinary course of business, the Company has entered into credit-related financial instruments consisting of commitments to extend credit, commercial letters of credit and standby letters of credit. The notional amount of these commitments is not reflected in the consolidated financial statements until they are funded.

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on unfunded commitments is adjusted as a provision for credit loss expense on the consolidated income statement. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Expected utilization rates are compared to the current funded portion of the total commitment amount as a practical expedient for funded exposure at default. The allowance for credit losses on unfunded commitments totaled $2.4 million and $1.2 million at December 31, 2020 and 2019, respectively.

Income Taxes

We file consolidated federal and state income tax returns, with each organization computing its taxes on a separate return basis. The provision for income taxes is based on income as reported in the consolidated financial statements.

Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future. The deferred tax assets and liabilities are computed based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities.

When tax returns are filed, it is highly certain that some positions taken will be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. Interest and penalties associated with unrecognized tax benefits are to be classified as additional income taxes in the consolidated statements of income. The Company evaluated its tax positions and concluded that it had taken no uncertain tax positions that require adjustment in the consolidated financial statements.

Share-Based Compensation Plans

Compensation cost for share-based payment awards is based on the fair value of the award at the date of grant. The fair value of stock options is estimated at the date of grant using a Black-Scholes option pricing model. The fair value of restricted stock is determined based on the Company’s current market price on the date of grant. Compensation cost is recognized in the consolidated financial statements on a straight-line basis over the requisite service period, which is generally defined as the vesting period. Additionally, the Company accounts for forfeitures as they occur.

Comprehensive Income

Comprehensive income is defined as net income plus transactions and other occurrences that are the result of non-owner changes in equity. Non-owner equity changes include unrealized gains and losses on available for sale securities and changes in the fair value of cash flow hedges. These are components of comprehensive income and do not have an impact on the Company’s net income.

Earnings per Share

Earnings per share are calculated utilizing the two-class method. Basic earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards.

Accounting Guidance Adopted in 2020

FASB ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” – On January 1, 2020, the Company adopted ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“CECL”).” The main objective of this amendment is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments within its scope, including loans held for investment purposes and other off-balance sheet (“OBS”) credit exposures, including commitments to extend credit, held by a reporting entity at each reporting date. The amendment requires the measurement of all expected credit losses for the in-scope financial assets at the date of origination or acquisition, and at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to enhance their credit loss estimates. The amendment requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The current expected credit loss measurement will be used to estimate the

allowance for credit losses over the life of the financial assets. The amendments in this update became effective for annual periods and interim periods within those annual periods beginning after December 15, 2019.

The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and OBS credit exposures. Results for reporting periods beginning after December 31, 2019, are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $7.2 million as of January 1, 2020 for the cumulative effect of adopting ASC 326.

The Company adopted ASC 326 using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”), previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets was adjusted to reflect the addition of $4.2 million of allowance for credit losses (“ACL”) on loans. The noncredit discount of $2.9 million, based on the adjusted amortized cost basis, will be accreted into interest income at the effective interest rate as of January 1, 2020.

The following table illustrates the impact of ASC 326.


	January 1, 2020
	As Reported Under ASC 326		Pre-ASC 326 Adoption		Impact of ASC 326 Adoption
(dollars in thousands)
Assets:
Loans
Commercial	$	1,056,986	$	1,055,185	$	1,801
Commercial real estate	1,528,119		1,526,504		1,615
Construction and land development	209,551		208,733		818
Residential real estate	570,882		568,291		2,591
Consumer	710,646		710,116		530
Lease financing	332,581		332,581		—
Allowance for credit losses on loans	(40,811)		(28,028)		(12,783)
Liabilities:
Allowance for credit losses on unfunded commitments	(1,507)		(1,244)		(263)

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on OBS credit exposures is adjusted as a provision for credit loss expense included in other expense on the consolidated income statement. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Expected utilization rates are compared to the current funded portion of the total commitment amount as a practical expedient for funded exposure at default.

Allowance for Credit Losses on Available-For-Sale Securities

For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recorded in other comprehensive income.

Changes in the ACL are recorded as provision for, or reversal of, credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

FASB ASU No. 2017-04, “Intangibles: Goodwill and Other (Topic 820): Simplifying the Test for Goodwill Impairment” – In January 2017, the FASB issued ASU No. 2017-04 to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The annual goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, the income tax effects of tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments should be applied on a prospective basis. The nature of and reason for the change in accounting principle should be disclosed upon transition. The amendments in this update became effective for annual goodwill impairment tests in fiscal years beginning after December 15, 2019 and did not have a material impact on the financial statements.

FASB ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” – On January 1, 2020, the Company adopted the provision of ASU 2018-13, which modifies the disclosure requirements on fair value measurements. The amendment removes certain disclosures required by Topic 820 related to transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. The update also adds certain disclosure requirements related to changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, the Company may disclose other quantitative information in lieu of the weighted average if we determine that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The adoption of this new guidance did not have a material impact on our consolidated financial statements.

FASB ASU No. 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract” – In August 2018, the FASB issued ASU No. 2018-15 to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This update became effective for the Company on January 1, 2020. The Company previously evaluated costs incurred for software developed or obtained for internal use or a hosting arrangement that is a service contract to determine which implementation costs should be capitalized as an asset and which costs should be expensed; therefore, the adoption of this new guidance did not have an impact on its consolidated financial statements.

Accounting Guidance Issued But Not Yet Adopted

FASB ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes - In December 2019, the FASB issued ASU No. 2019-12 which removes specific exceptions to the general principles in Topic 740 in GAAP. It eliminates the need for an organization to analyze whether the following apply in a given period: (1) exception to the incremental approach for intraperiod tax allocation; (2) exceptions to accounting for basis differences when there are ownership changes in foreign investments; and (3) exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: (1) franchise taxes that are partially based on income; (2) transactions with a government that result in a step up in the tax basis of goodwill; (3) separate financial statements of legal entities that are not subject to tax; and (4) enacted changes in tax laws in interim periods. The amendments in this update become effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

FASB ASU No. 2020-01, Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions Between Topic 321, Topic 323 and Topic 815 (a Consensus of the Emerging Issues Task Force) – In January 2020, the FASB issued ASU No. 2020-01 which clarifies the interactions ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities and the ASU on equity method investments. ASU 2016-01 provides companies with an alternative to measure certain equity securities without a readily determinable fair value at cost, minus

impairment, if any, unless an observable transaction for an identical or similar security occurs. ASU 2020-01 clarifies that for purposes of applying the Topic 321 measurement alternative, an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting under Topic 323, immediately before applying or upon discontinuing the equity method. In addition, the new ASU provides direction that a company should not consider whether the underlying securities would be accounted for under the equity method or the fair value option when it is determining the accounting for certain forward contracts and purchased options, upon either settlement or exercise. The amendments in this update become effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted, and the amendments are to be applied prospectively. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

FASB ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting – In March 2020, the FASB issued ASU No. 2020-04 to ease the potential burden in accounting for, or recognizing the effects of, the transition away from the LIBOR or other interbank offered rates. The new guidance provides the following optional expedients that reduce costs and complexity of account for reference rate reform: (1) simplifies accounting analyses for contract modifications; (2) allows hedging relationships to continue without de-designation if there are qualifying changes in the critical terms of an existing hedging relationship due to reference rate reform; (3) allows a change in the systematic and rational method used to recognize in earnings the compounds excluded from the assessment of hedge effectiveness; (4) allows a change in the designated benchmark interest rate to a different eligible benchmark interest rate in a fair value hedging relationship; (5) allows the shortcut method for a fair value hedging relationship to continue for the remainder of the hedging relationship; (6) simplifies the assessment of hedge effectiveness and provides temporary optional expedients for cash flow hedging relationships affected by reference rate reform; (7) allows a one-time election to sell or transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and are classified as held to maturity before January 1, 2020.

The amendments in Update 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. Because the guidance is meant to help entities through the transition period, it will be in effect for a limited time and will not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, for which an entity has elected certain optional expedients that are retained through the end of the hedging relationship. The amendments in the ASU are effective March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements.

DISPOSITIONS AND ACQUISITIONS

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

DISPOSITIONS AND ACQUISITIONS

Commercial FHA Origination Platform

On August 28, 2020, the Company announced that it had completed the sale of its commercial FHA origination platform to Dwight Capital, a nationwide mortgage banking firm headquartered in New York. The Bank continues to service Love Funding’s current servicing portfolio of approximately $3.50 billion.

HomeStar Financial Group, Inc.

On July 17, 2019, the Company completed its acquisition of HomeStar, and its wholly-owned banking subsidiary, HomeStar Bank, which operated five full-service banking centers in northern Illinois. The Company acquired HomeStar for consideration valued at approximately $11.4 million, which consisted of approximately $1.0 million in cash and the issuance of 404,968 shares of the Company’s common stock. The acquisition was accounted for under the acquisition method of accounting. Accordingly, the Company recognized amounts for identifiable tangible and intangible assets acquired and liabilities assumed at their estimated acquisition date fair values, while $7.4 million of transaction and integration costs associated with the acquisition were expensed during 2020 and 2019 as incurred. As of July 17, 2020, the Company finalized its valuation of all assets acquired and liabilities assumed in its acquisition of Homestar, resulting in no material change to acquisition accounting adjustments.

Alpine Bancorporation, Inc.

On February 28, 2018, the Company completed its acquisition of Alpine and its wholly-owned banking subsidiary, Alpine Bank, which operated 19 locations in northern Illinois. The Company acquired Alpine for consideration valued at approximately $173.2 million, which consisted of approximately $33.3 million in cash and the issuance of 4,463,200 shares of the Company’s common stock. The acquisition was accounted for under the acquisition method of accounting. Accordingly, the Company recognized amounts for identifiable tangible and intangible assets acquired and liabilities assumed at their estimated acquisition date fair values, while $22.4 million of transaction and integration costs were expensed as incurred. As of February

28, 2019, the Company finalized its valuation of all assets acquired and liabilities assumed in its acquisition of Alpine, resulting in no material change to acquisition accounting adjustments.

A summary of the fair value of the assets acquired, liabilities assumed and resulting goodwill are included in the table below.


(dollars in thousands)	HomeStar		Alpine
Assets acquired:
Cash and cash equivalents	$	70,900	$	69,459
Investment securities available for sale	54,963		293,428
Equity securities	2,153		8,372
Loans	211,070		786,186
Loans held for sale	3,562		3,416
Premises and equipment	4,049		18,126
Operating lease right-of-use asset	5,177		—
Other real estate owned	1,092		53
Nonmarketable equity securities	454		2,038
Accrued interest receivable	1,185		4,414
Loan servicing rights	1,089		—
Mortgage servicing rights held for sale	1,701		3,068
Intangible assets	4,600		27,400
Cash surrender value of life insurance policies	—		22,578

Deferred tax assets, net	2,732		—
Other assets	1,541		4,770
Total assets acquired	366,268		1,243,308
Liabilities assumed:
Deposits	321,740		1,111,130
Short-term borrowings	—		—
FHLB advances and other borrowings	31,369		18,127
Trust preferred debentures	—		—
Accrued interest payable	115		539
Operating lease liabilities	6,232		—
Deferred tax liabilities, net	—		1,749
Other liabilities	3,575		4,500
Total liabilities assumed	363,031		1,136,045
Net assets acquired	3,237		107,263
Goodwill	8,123		65,964
Total consideration paid	$	11,360	$	173,227

Intangible assets:
Core deposit intangible	$	4,300	$	21,100
Customer relationship intangible	300		6,300
Total intangible assets	$	4,600	$	27,400
Estimated useful lives:
Core deposit intangible	12 years		13 years
Customer relationship intangible	6 years		13 years

Goodwill arising from the acquisitions consisted largely of synergies and economies of scale expected from the combining of the operations of companies. The goodwill is assigned as part of the Company’s banking reporting unit. The portion of the consideration paid allocated to goodwill will not be deductible for tax purposes.

The identifiable assets acquired from HomeStar and Alpine included core deposit intangibles and customer relationship intangibles, which are being amortized on an accelerated basis as shown above.

CASH AND DUE FROM BANKS	12 Months Ended
CASH AND DUE FROM BANKS	Dec. 31, 2020
Cash and Cash Equivalents [Abstract]
CASH AND DUE FROM BANKS	CASH AND DUE FROM BANKS The Bank is required to maintain cash reserves based on the level of certain of its deposit accounts. This reserve requirement may be met by funds on deposit with the FRB and cash on hand. In response to the COVID-19 pandemic, the Federal Reserve lowered the reserve requirement ratios to 0% effective March 26, 2020, and therefore, the Bank had no required reserve balance at December 31, 2020. The required balance at December 31, 2019 was $36.9 million.. The Bank maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Bank has not experienced any losses in such accounts. The Bank believes it is not exposed to any significant credit risk from cash and cash equivalents.

INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

Investment Securities Available for Sale

Investment securities available for sale at December 31, 2020 and 2019 were as follows:


	2020
(dollars in thousands)	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Allowance for credit losses		Fair value
Investment securities available for sale
U.S. government sponsored entities and U.S. agency securities	$	35,287	$	377	$	97	$	—	$	35,567
Mortgage-backed securities - agency	338,340		6,284		47		—		344,577
Mortgage-backed securities - non-agency	20,411		333		—		—		20,744
State and municipal securities	122,488		7,311		5		29		129,765
Corporate securities	145,187		2,205		997		337		146,058
Total investment securities available for sale	$	661,713	$	16,510	$	1,146	$	366	$	676,711


	2019
(dollars in thousands)	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Allowance for credit losses	Fair value
Investment securities available for sale
U.S. government sponsored entities and U.S. agency securities	$	59,600	$	442	$	22	N/A	$	60,020
Mortgage-backed securities - agency	321,840		3,368		234		N/A	324,974
Mortgage-backed securities - non-agency	17,198		3		53		N/A	17,148
State and municipal securities	119,371		5,195		11		N/A	124,555
Corporate securities	121,159		2,131		554		N/A	122,736
Total investment securities available for sale	$	639,168	$	11,139	$	874	N/A	$	649,433

The following is a summary of the amortized cost and fair value of investment securities available for sale, by maturity, at December 31, 2020. Expected maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be prepaid without penalties. The maturities of all other investment securities available for sale are based on final contractual maturity.


(dollars in thousands)	Amortized cost		Fair value
Investment securities available for sale
Within one year	$	30,924	$	31,329
After one year through five years	60,927		63,470
After five years through ten years	176,530		180,383
After ten years	34,581		36,208
Mortgage-backed securities	358,751		365,321
Total investment securities available for sale	$	661,713	$	676,711

Proceeds from the sale of investment securities available for sale and the resulting gross realized gains and losses for the years ended December 31, 2020, 2019 and 2018 are summarized below:


(dollars in thousands)	2020		2019		2018
Investment securities available for sale
Proceeds from sales	$	28,256	$	33,464	$	20,178
Gross realized gains on sales	1,721		786		542
Gross realized losses on sales	—		(190)		(25)

The table below presents a rollforward by major security type for the year ended December 31, 2020 of the ACL on investment securities available for sale held at period end:


(dollars in thousands)	State and municipal securities		Corporate securities
Allowance for credit losses
Balance, beginning of period	$	—	$	—
Current-period provision for expected credit losses	29		337
Balance, end of period	$	29	$	337

Unrealized losses and fair values for investment securities available for sale at December 31, 2020, for which an ACL has not been recorded, and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows:


	2020
	Less than 12 Months				12 Months or more				Total
(dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
Investment securities available for sale
U.S. government sponsored entities and U.S. agency securities	$	9,903	$	97	$	—	$	—	$	9,903	$	97
Mortgage-backed securities - agency	26,172		47		—		—		26,172		47
Mortgage-backed securities - non-agency	—		—		—		—		—		—
State and municipal securities	—		—		—		—		—		—
Corporate securities	20,010		522		—		—		20,010		522
Total investment securities available for sale	$	56,085	$	666	$	—	$	—	$	56,085	$	666


	2019
	Less than 12 Months				12 Months or more				Total
(dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
Investment securities available for sale
U.S. government sponsored entities and U.S. agency securities	$	7,200	$	22	$	—	$	—	$	7,200	$	22
Mortgage-backed securities - agency	75,336		170		7,170		64		82,506		234
Mortgage-backed securities - non-agency	11,059		53		—		—		11,059		53
State and municipal securities	1,813		11		—		—		1,813		11
Corporate securities	20,269		481		3,915		73		24,184		554
Total investment securities available for sale	$	115,677	$	737	$	11,085	$	137	$	126,762	$	874

For all of the above investment securities available for sale, the unrealized losses are generally due to changes in interest rates, and unrealized losses are considered to be temporary as the fair value is expected to recover as the securities approach their respective maturity dates.

At December 31, 2020, 22 investment securities available for sale had unrealized losses with aggregate depreciation of 1.17% from their amortized cost basis. The unrealized losses relate principally to the fluctuations in the current interest rate environment. In analyzing an issuer’s financial condition, we consider whether the securities are issued by the federal government or its agencies and whether downgrades by bond rating agencies have occurred. The Company does not intend to sell and it is likely that the Company will not be required to sell the securities prior to their anticipated recovery.

Equity Securities

Equity securities are recorded at fair value and totaled $9.4 million and $5.6 million at December 31, 2020 and 2019, respectively.

Proceeds and gross realized gains and losses on sales of equity securities as well as net unrealized gains and losses on equity securities for the years ended December 31, 2020, 2019 and 2018 are summarized below:


(dollars in thousands)	2020		2019		2018
Equity securities
Proceeds from sales	$	—	$	105	$	7,733
Gross realized gains on sales	—		78		—
Gross realized losses on sales	—		—		(53)
Net unrealized gains (losses)	577		93		(10)

Net unrealized gains and losses on equity securities were recorded in other income in the consolidated statements of income.

LOANS

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

LOANS

The following table presents total loans outstanding by portfolio class, at December 31, 2020 and 2019:


(dollars in thousands)	2020		2019
Commercial:
Commercial	$	937,382	$	628,056
Commercial other	748,193		427,129
Commercial real estate:
Commercial real estate non-owner occupied	871,451		825,874
Commercial real estate owner occupied	423,257		464,601
Multi-family	151,534		146,795
Farmland	79,731		89,234
Construction and land development	172,737		208,733
Total commercial loans	3,384,285		2,790,422
Residential real estate:
Residential first lien	358,329		456,107
Other residential	84,551		112,184
Consumer:
Consumer	80,642		100,732
Consumer other	785,460		609,384
Lease financing	410,064		332,581
Total loans, gross	$	5,103,331	$	4,401,410

Total loans include net deferred loan fees of $0.7 million and $2.2 million at December 31, 2020 and 2019, respectively, and unearned discounts of $46.5 million and $39.6 million within the lease financing portfolio at December 31, 2020 and 2019, respectively.

At December 31, 2020 and 2019, the Company had commercial real estate and residential real estate loans held for sale totaling $138.1 million and $16.4 million, respectively. During the years ended December 31, 2020 and 2019, the Company sold commercial real estate, residential real estate and consumer loans with proceeds totaling $1.22 billion and $949.7 million, respectively.

Classifications of Loan Portfolio

The Company monitors and assesses the credit risk of its loan portfolio using the classes set forth below. These classes also represent the segments by which the Company monitors the performance of its loan portfolio and estimates its ACL on loans.

Commercial—Loans to varying types of businesses, including municipalities, school districts and nonprofit organizations, for the purpose of supporting working capital, operational needs and term financing of equipment. Repayment of such loans is generally provided through operating cash flows of the business. Commercial loans are predominately secured by equipment, inventory, accounts receivable, and other sources of repayment. PPP loans of $184.4 million as of December 31, 2020 were included in this classification.

Commercial real estate—Loans secured by real estate occupied by the borrower for ongoing operations, including loans to borrowers engaged in agricultural production, and non-owner occupied real estate leased to one or more tenants, including commercial office, industrial, special purpose, retail and multi-family residential real estate loans.

Construction and land development—Secured loans for the construction of business and residential properties. Real estate construction loans often convert to a real estate commercial loan at the completion of the construction period. Secured development loans are made to borrowers for the purpose of infrastructure improvements to vacant land to create finished marketable residential and commercial lots/land. Most land development loans are originated with the intention that the loans will be paid through the sale of developed lots/land by the developers within twelve months of the completion date. Interest reserves may be established on real estate construction loans.

Residential real estate—Loans secured by residential properties that generally do not qualify for secondary market sale; however, the risk to return and/or overall relationship are considered acceptable to the Company. This category also includes loans whereby consumers utilize equity in their personal residence, generally through a second mortgage, as collateral to secure the loan.

Consumer—Loans to consumers primarily for the purpose of home improvements or acquiring automobiles, recreational vehicles and boats. Consumer loans consist of relatively small amounts that are spread across many individual borrowers.

Lease financing—Our equipment leasing business provides financing leases to varying types of businesses, nationwide, for purchases of business equipment and software. The financing is secured by a first priority interest in the financed assets and generally requires monthly payments.

Commercial, commercial real estate, and construction and land development loans are collectively referred to as the Company’s commercial loan portfolio, while residential real estate, consumer loans and lease financing receivables are collectively referred to as the Company’s other loan portfolio.

We have extended loans to certain of our directors, executive officers, principal shareholders and their affiliates. These loans were made in the ordinary course of business upon normal terms, including collateralization and interest rates prevailing at the time. The aggregate loans outstanding to the Company's directors, executive officers, principal shareholders and their affiliates totaled $19.7 million and $23.0 million at December 31, 2020 and 2019, respectively. The new loans, other additions, repayments and other reductions for the years ended December 31, 2020 and 2019, are summarized as follows:


(dollars in thousands)	2020		2019
Beginning balance	$	22,989	$	26,536
New loans and other additions	2,563		3,400
Repayments and other reductions	(5,859)		(6,947)
Ending balance	$	19,693	$	22,989

The following table presents, by loan portfolio, a summary of changes in the ACL on loans for the years ended December 31, 2020, 2019 and 2018:


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
(dollars in thousands)	Commercial		Estate		Development		Estate		Consumer		Financing		Total
Changes in allowance for credit losses on loans in 2020:
Balance, beginning of period	$	10,031	$	10,272	$	290	$	2,499	$	2,642	$	2,294	$	28,028
Impact of adopting ASC 326	2,327		4,104		724		1,211		(594)		774		8,546
Impact of adopting ASC 326 - PCD loans	1,045		1,311		809		1,015		57		—		4,237
Provision for credit losses on loans	11,890		23,091		(121)		(458)		1,212		7,535		43,149
Charge-offs	(5,589)		(13,637)		(376)		(522)		(1,624)		(3,706)		(25,454)
Recoveries	147		324		107		184		645		530		1,937
Balance, end of period	$	19,851	$	25,465	$	1,433	$	3,929	$	2,338	$	7,427	$	60,443

Changes in allowance for credit losses on loans in 2019:
Balance, beginning of period	$	9,524	$	4,723	$	372	$	2,041	$	2,154	$	2,089	$	20,903
Provision for credit losses on loans	3,852		7,939		(53)		1,392		1,767		2,088		16,985
Charge-offs	(3,412)		(3,339)		(44)		(1,076)		(1,946)		(2,251)		(12,068)
Recoveries	67		949		15		142		667		368		2,208
Balance, end of period	$	10,031	$	10,272	$	290	$	2,499	$	2,642	$	2,294	$	28,028

Changes in allowance for credit losses on loans in 2018:
Balance, beginning of period	$	5,256	$	5,044	$	518	$	2,750	$	1,344	$	1,519	$	16,431
Provision for credit losses on loans	4,941		(207)		(227)		(517)		2,156		3,284		9,430
Charge-offs	(1,236)		(492)		—		(361)		(1,876)		(3,024)		(6,989)
Recoveries	563		378		81		169		530		310		2,031
Balance, end of period	$	9,524	$	4,723	$	372	$	2,041	$	2,154	$	2,089	$	20,903

The following table presents, by loan portfolio, details regarding the balance in the allowance for credit losses on loans and the recorded investment in loans as of December 31, 2019 by impairment evaluation method:


	Commercial Loan Portfolio						Other Loan Portfolio
(dollars in thousands)	Commercial		Commercial Real Estate		Construction and Land Development		Residential Real Estate		Consumer		Lease Financing		Total
Allowance for credit losses on loans:
Loans individually evaluated for impairment	$	3,563	$	5,968	—		$	290	—		$	156	$	9,977
Loans collectively evaluated for impairment	69		100		14		444		39		122		788
Non-impaired loans collectively evaluated for impairment	6,380		3,643		272		1,269		2,500		2,016		16,080
Loans acquired with deteriorated credit quality (1)	19		561		4		496		103		—		1,183
Total allowance for credit losses on loans	$	10,031	$	10,272	$	290	$	2,499	$	2,642	$	2,294	$	28,028
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment	$	5,767	$	22,698	$	1,245	$	5,329	—		$	697	$	35,736
Impaired loans collectively evaluated for impairment	511		764		104		3,695		376		896		6,346
Non-impaired loans collectively evaluated for impairment	1,045,829		1,482,935		201,707		546,630		708,528		330,988		4,316,617
Loans acquired with deteriorated credit quality (1)	3,078		20,107		5,677		12,637		1,212		—		42,711
Total recorded investment (loan balance)	$	1,055,185	$	1,526,504	$	208,733	$	568,291	$	710,116	$	332,581	$	4,401,410

(1)Loans acquired with deteriorated credit quality were originally recorded at fair value at the acquisition date, and the risk of credit loss was recognized at that date based on estimates of expected cash flows.

The Company utilizes the PD/LGD methodology in determining expected future credit losses. PD is the risk that the borrower will be unable or unwilling to repay its debt in full or on time. The risk of default is derived by analyzing the obligor’s capacity to repay the debt in accordance with contractual terms. PD is generally associated with financial characteristics such as inadequate cash flow to service debt, declining revenues or operating margins, high leverage, declining or marginal liquidity, and the inability to successfully implement a business plan. In addition to these quantifiable factors, the borrower’s willingness to repay also must be evaluated.

The PD is forecasted, for most commercial and retail loans, using a regression model that determine the likelihood of default within the twelve month time horizon. The regression model uses forward-looking economic forecasts including variables such as gross domestic product, housing price index, and real disposable income to predict default rates. The forecasting method for the Equipment Financing portfolio assumes a rolling twelve month average of the through-the-cycle default mean, to predict default rates for the twelve month time horizon.

As a method for estimating the allowance, it is a form of migration analysis that combines the estimated probability of loans experiencing default events and the losses ultimately associated with the loans experiencing those defaults. The LGD component is the percentage of defaulted loan balance that is ultimately charged off. Multiplying one by the other gives the Company its loss rate, which is then applied to the loan portfolio balance to determine expected future losses.

Within the model, the LGD approach produces segmented LGD estimates using a loss curve methodology, which is based on historical net losses from charge-off and recovery information. The main principle of a loss curve model is that the loss follows a steady timing schedule based on how long the defaulted loan has been on the books.

The Company’s expected loss estimate is anchored in historical credit loss experience, with an emphasis on all available portfolio data. The Company’s historical look-back period includes January 2012 through the current period, on a monthly basis. When historical credit loss experience is not sufficient for a specific portfolio, the Company may supplement its own portfolio data with external models or data.

Historical data is evaluated in multiple components of the expected credit loss, including the reasonable and supportable forecast and the post-reversion period of each loan segment. The historical experience is used to infer probability of

default and loss given default in the reasonable and supportable forecast period. In the post-reversion period, long-term average loss rates are segmented by loan pool.

Qualitative reserves reflect management’s overall estimate of the extent to which current expected credit losses on collectively evaluated loans will differ from historical loss experience. The analysis takes into consideration other analytics performed within the organization, such as enterprise and concentration management, along with other credit-related analytics as deemed appropriate. Management attempts to quantify qualitative reserves whenever possible.

For the initial implementation, the Company’s CECL estimate applied a 12-month forecast that incorporated historical loss experience, the then current political environment and macroeconomic trends including unemployment rates and real estate prices. Management also took into consideration forecast assumptions used in budgeting, capital planning and stress testing. These considerations influenced the selection of a 12-month period, combined with a 12-month reversion period, for a 24-month period before historic loss experience is applied to the expected loss estimate, consistently for every loan pool.

The Company segments the loan portfolio into pools based on the following risk characteristics: financial asset type, collateral type, loan characteristics, credit characteristics, outstanding loan balances, contractual terms and prepayment assumptions, industry of borrower and concentrations, historical or expected credit loss patterns, and reasonable and supportable forecast periods.

Within the PD segmentation, credit metrics are identified to further segment the financial assets. The Company utilizes risk ratings for the commercial portfolios and days past due for the consumer and the lease financing portfolios.

The Company has defined five transitioning risk states for each asset pool within the expected credit loss model. The below table illustrates the transition matrix:


Risk State	Commercial Loans Risk Rating	Consumer Loans and Equipment Finance Loans and Leases Days Past Due
1	0-5	0-14
2	6	15-29
3	7	30-59
4	8	60-89
Default	9+ and nonaccrual	90+ and nonaccrual

Expected Credit Losses

In calculating expected credit losses, the Company individually evaluates loans on nonaccrual status with a balance greater than $500,000, loans past due 90 days or more and still accruing interest, and loans that do not share risk characteristics

with other loans in the pool. The following table presents the amortized cost basis of individually evaluated loans on nonaccrual status as of December 31, 2020 and 2019:


	2020						2019
	Nonaccrual		Nonaccrual				Nonaccrual		Nonaccrual
	with		with no		Total		with		with no		Total
(dollars in thousands)	Allowance		Allowance		Nonaccrual		Allowance		Allowance		Nonaccrual
Commercial:
Commercial	$	3,498	$	—	$	3,498	$	1,373	$	119	$	1,492
Commercial Other	2,634		—		2,634		2,832		1,519		4,351
Commercial real estate:
Commercial real estate non-owner occupied	5,509		3,823		9,332		6,343		4,572		10,915
Commercial real estate owner occupied	3,598		3,227		6,825		1,748		2,648		4,396
Multi-family	7,921		2,325		10,246		4,801		1,430		6,231
Farmland	—		—		—		50		150		200
Construction and land development	2,131		693		2,824		59		1,245		1,304
Total commercial loans	25,291		10,068		35,359		17,206		11,683		28,889
Residential real estate:
Residential first lien	8,534		1,071		9,605		3,724		2,416		6,140
Other residential	2,437		—		2,437		744		912		1,656
Consumer:
Consumer	262		—		262		334		7		341
Consumer Other	—		—		—		—		—		—
Lease financing	1,965		—		1,965		1,259		116		1,375
Total loans	$	38,489	$	11,139	$	49,628	$	23,267	$	15,134	$	38,401

During the first quarter of 2020, as part of the adoption of CECL, $9.8 million of PCD loans were reclassified to nonaccrual loans.

There was no interest income recognized on nonaccrual loans during the years ended December 31, 2020, 2019 and 2018 while the loans were in nonaccrual status. Additional interest income that would have been recorded on nonaccrual loans had they been current in accordance with their original terms was $3.3 million, $2.2 million and $1.8 million during the years ended December 31, 2020, 2019 and 2018, respectively. The Company recognized interest income on commercial and commercial real estate loans modified under troubled debt restructurings of $0.1 million during each of the years ended December 31, 2020, 2019 and 2018.

Collateral Dependent Financial Assets

A collateral dependent financial loan relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with a loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of protection provided by the cash flow and value of any underlying collateral. However, as other sources of repayment become inadequate over time, the significance of the collateral’s value increases and the loan may become collateral dependent.

The table below presents the value of individually evaluated, collateral dependent loans by loan class, for borrowers experiencing financial difficulty, as of December 31, 2020:


(dollars in thousands)	2020
Commercial
Commercial Other	$	—
Commercial Real Estate
Non-Owner Occupied	8,159
Owner Occupied	—
Multi-Family	10,121
Construction and Land Development	693
Residential Real Estate
Residential First Lien	—
Total Collateral Dependent Loans	$	18,973

All loans included in the above table are secured by real estate.

The aging status of the recorded investment in loans by portfolio as of December 31, 2020 was as follows:


	Accruing Loans
(dollars in thousands)	30-59 days past due		60-89 days past due		Past due 90 days or more		Total past due loans		Nonaccrual loans		Current loans		Total loans
Commercial:
Commercial	$	389	$	27	$	—	$	416	$	3,498	$	933,468	$	937,382
Commercial other	4,007		3,901		896		8,804		2,634		736,755		748,193
Commercial real estate:
Commercial real estate non-owner occupied	6,684		—		—		6,684		9,332		855,435		871,451
Commercial real estate owner occupied	2,145		—		—		2,145		6,825		414,287		423,257
Multi-family	61		—		—		61		10,246		141,227		151,534
Farmland	—		—		—		—		—		79,731		79,731
Construction and land development	863		—		—		863		2,824		169,050		172,737
Total commercial loans	14,149		3,928		896		18,973		35,359		3,329,953		3,384,285
Residential real estate:
Residential first lien	127		207		—		334		9,605		348,390		358,329
Other residential	240		135		—		375		2,437		81,739		84,551
Consumer:
Consumer	325		57		—		382		262		79,998		80,642
Consumer other	4,334		2,874		—		7,208		—		778,252		785,460
Lease financing	4,539		545		645		5,729		1,965		402,370		410,064
Total loans	$	23,714	$	7,746	$	1,541	$	33,001	$	49,628	$	5,020,702	$	5,103,331

The aging status of the recorded investment in loans by portfolio, excluding PCI, as of December 31, 2019 was as follows:


	Accruing Loans
(dollars in thousands)	30-59 days past due		60-89 days past due		Past due 90 days or more		Total past due loans		Nonaccrual loans		Current loans		Total loans
Commercial	$	5,910	$	3,086	—		$	8,996	$	5,843	$	1,037,268	$	1,052,107
Commercial real estate	2,895		399		—		3,294		21,742		1,481,361		1,506,397
Construction and land development	1,539		72		—		1,611		1,304		200,141		203,056
Residential real estate	588		1,561		145		2,294		7,796		545,564		555,654
Consumer	6,701		4,154		—		10,855		341		697,708		708,904
Lease financing	1,783		1,188		218		3,189		1,375		328,017		332,581
Total loans (excluding PCI)	$	19,416	$	10,460	$	363	$	30,239	$	38,401	$	4,290,059	$	4,358,699

Troubled Debt Restructurings

Loans modified as TDRs for commercial and commercial real estate loans generally consist of allowing commercial borrowers to defer scheduled principal payments and make interest only payments for a specified period of time at the stated interest rate of the original loan agreement or lower payments due to a modification of the loans’ contractual terms. TDRs that continue to accrue interest and are greater than $50,000 are individually evaluated for impairment, on a quarterly basis, and transferred to nonaccrual status when it is probable that any remaining principal and interest payments due on the loan will not be collected in accordance with the contractual terms of the loan. TDRs that subsequently default are individually evaluated for impairment at the time of default.

The CARES Act provides all banks with the option to elect either or both of the following from March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the termination of the national emergency declared by President Trump on March 13, 2020:

(i) to suspend the requirements under GAAP for loan modifications related to the COVID–19 pandemic that would otherwise be categorized as a TDR; and/or

(ii) to suspend any determination of a loan modified as a result of the effects of the COVID–19 pandemic as being a TDR, including impairment for accounting purposes.

Section 541 of the Consolidated Appropriations Act extends this relief to the earlier of January 1, 2022 or 60 days after the national emergency termination date.

If a bank elects, which the Bank has, a suspension noted above, the suspension (i) will be effective for the term of the loan modification, but solely with respect to any modification, including a forbearance arrangement, an interest rate modification, a repayment plan, and any other similar arrangement that defers or delays the payment of principal or interest, that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019; and (ii) will not apply to any adverse impact on the credit of a borrower that is not related to the COVID–19 pandemic. The outstanding balance of modifications made as a result of COVID-19, that were not considered TDRs, totaled $209.1 million at December 31, 2020.

The Company’s TDRs are identified on a case-by-case basis in connection with the ongoing loan collection processes. The following table presents TDRs by loan portfolio as of December 31, 2020 and 2019:


	2020						2019(3)
(dollars in thousands)	Accruing(1)		Non-accrual(2)		Total		Accruing(1)		Non-accrual(2)		Total
Commercial	$	967	$	558	$	1,525	$	435	$	369	$	804
Commercial real estate	866		4,314		5,180		1,720		9,834		11,554
Construction and land development	39		909		948		45		167		212
Residential real estate	988		3,705		4,693		1,083		1,993		3,076
Consumer	41		—		41		35		—		35
Lease financing	—		38		38		—		55		55
Total loans	$	2,901	$	9,524	$	12,425	$	3,318	$	12,418	$	15,736

(1)These loans are still accruing interest.

(2)These loans are included in non-accrual loans in the preceding tables.

(3)TDRs as of December 31, 2019 exclude PCI loans.

The ACL on TDRs totaled $0.8 million and $2.0 million as of December 31, 2020 and 2019, respectively. The Company had no unfunded commitments in connection with TDRs at December 31, 2020 and 2019.

The following table presents a summary of loans by portfolio that were restructured during the years ended December 31, 2020, 2019 and 2018. There were no loans modified as TDRs within the previous twelve months that subsequently defaulted during the years ended December 31, 2020, 2019 and 2018:


	Commercial Loan Portfolio						Other Loan Portfolio
(dollars in thousands)	Commercial		Commercial real estate		Construction and land development		Residential real estate		Consumer		Lease financing		Total
For the year ended December 31, 2020:
Troubled debt restructurings:
Number of loans	4		4		3		22		4		—		37
Pre-modification outstanding balance	$	989	$	797	$	1,010	$	2,334	$	34	$	—	$	5,164
Post-modification outstanding balance	967		383		900		2,172		33		—		4,455





For the year ended December 31, 2019:
Troubled debt restructurings:
Number of loans	1		3		2		25		5		1		37
Pre-modification outstanding balance	$	249	$	1,924	$	221	$	1,422	$	26	$	55	$	3,897
Post-modification outstanding balance	249		1,322		167		1,322		25		55		3,140





For the year ended December 31, 2018:
Troubled debt restructurings:
Number of loans	2		2		—		7		25		—		36
Pre-modification outstanding balance	$	423	$	1,571	$	—	$	708	$	130	$	—	$	2,832
Post-modification outstanding balance	408		1,565		—		696		130		—		2,799

Credit Quality Monitoring

The Company maintains loan policies and credit underwriting standards as part of the process of managing credit risk. These standards include making loans generally within the Company’s four main regions, which include eastern, northern and southern Illinois and the St. Louis metropolitan area. Our equipment leasing business provides financing to business customers across the country.

The Company has a loan approval process involving underwriting and individual and group loan approval authorities to consider credit quality and loss exposure at loan origination. The loans in the Company’s commercial loan portfolio are risk rated at origination based on the grading system set forth below. All loan authority is based on the aggregate credit to a borrower and its related entities.

The Company’s consumer loan portfolio is primarily comprised of both secured and unsecured loans that are relatively small and are evaluated at origination on a centralized basis against standardized underwriting criteria. The ongoing measurement of credit quality of the consumer loan portfolio is largely done on an exception basis. If payments are made on schedule, as agreed, then no further monitoring is performed. However, if delinquency occurs, the delinquent loans are turned over to the Company’s Consumer Collections Group for resolution. Credit quality for the entire consumer loan portfolio is measured by the periodic delinquency rate, nonaccrual amounts and actual losses incurred.

Loans in the commercial loan portfolio tend to be larger and more complex than those in the other loan portfolio, and therefore, are subject to more intensive monitoring. All loans in the commercial loan portfolio have an assigned relationship manager, and most borrowers provide periodic financial and operating information that allows the relationship managers to stay abreast of credit quality during the life of the loans. The risk ratings of loans in the commercial loan portfolio are reassessed at least annually, with loans below an acceptable risk rating reassessed more frequently and reviewed by various individuals within the Company at least quarterly.

The Company maintains a centralized independent loan review function that monitors the approval process and ongoing asset quality of the loan portfolio, including the accuracy of loan grades. The Company also maintains an independent appraisal review function that participates in the review of all appraisals obtained by the Company.

Credit Quality Indicators

The Company uses a ten grade risk rating system to monitor the ongoing credit quality of its commercial loan portfolio. These loan grades rank the credit quality of a borrower by measuring liquidity, debt capacity, and coverage and payment behavior as shown in the borrower’s financial statements. The risk grades also measure the quality of the borrower’s management and the repayment support offered by any guarantors.

The Company considers all loans with Risk Grades 1 -6 as acceptable credit risks and structures and manages such relationships accordingly. Periodic financial and operating data combined with regular loan officer interactions are deemed adequate to monitor borrower performance. Loans with Risk Grades of 7 are considered "watch credits" categorized as special mention and the frequency of loan officer contact and receipt of financial data is increased to stay abreast of borrower performance. Loans with Risk Grades of 8 - 10 are considered problematic and require special care. Risk Grade 8 is categorized as substandard, 9 as substandard - nonaccrual and 10 as doubtful. Further, loans with Risk Grades of 7 - 10 are managed regularly through a number of processes, procedures and committees, including oversight by a loan administration committee comprised of executive and senior management of the Company, which includes highly structured reporting of financial and operating data, intensive loan officer intervention and strategies to exit, as well as potential management by the Company's Special Assets Group. Loans not graded in the commercial loan portfolio are monitored by aging status and payment activity.

The following tables present the recorded investment of the commercial loan portfolio by risk category as of December 31, 2020 and 2019:


			2020
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2020		2019		2018		2017		2016		Prior		Revolving loans		Total
Commercial	Commercial	Acceptable credit quality	$	117,792	$	107,915	$	35,649	$	34,753	$	22,025	$	51,593	$	517,929	$	887,656
		Special mention	244		201		4,897		3,729		4,968		881		7,721		22,641
		Substandard	544		1,953		1,259		104		248		4,861		14,618		23,587
		Substandard – nonaccrual	2		31		640		936		154		458		1,277		3,498
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	118,582		110,100		42,445		39,522		27,395		57,793		541,545		937,382

	Commercial other	Acceptable credit quality	416,306		157,232		52,843		739		303		677		88,250		716,350
		Special mention	1,871		10,691		3,810		31		79		—		5,315		21,797
		Substandard	255		260		1,078		3		12		—		5,351		6,959
		Substandard – nonaccrual	—		1,984		641		—		4		—		5		2,634
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	453		—		—		—		—		—		—		453
		Subtotal	418,885		170,167		58,372		773		398		677		98,921		748,193

Commercial real estate	Non-owner occupied	Acceptable credit quality	168,788		109,602		63,435		91,763		97,293		156,958		5,248		693,087
		Special mention	3,011		9,107		3,231		483		14,294		17,816		4,279		52,221
		Substandard	7,469		16,306		13,813		23,169		16,897		38,907		250		116,811
		Substandard – nonaccrual	125		325		101		—		3,438		5,343		—		9,332
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	179,393		135,340		80,580		115,415		131,922		219,024		9,777		871,451

	Owner occupied	Acceptable credit quality	68,688		55,502		38,471		55,526		63,105		91,986		4,066		377,344
		Special mention	1,882		3,578		225		4,142		1,038		7,289		—		18,154
		Substandard	4,078		468		1,023		760		5,861		8,430		314		20,934
		Substandard – nonaccrual	373		200		170		241		—		5,441		400		6,825
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	75,021		59,748		39,889		60,669		70,004		113,146		4,780		423,257

	Multi-family	Acceptable credit quality	12,865		6,921		19,204		32,934		10,674		24,375		1,281		108,254
		Special mention	465		—		8,442		—		—		1,323		—		10,230
		Substandard	—		10,945		1,518		—		10,266		75		—		22,804
		Substandard – nonaccrual	—		—		—		—		7,804		2,442		—		10,246
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	13,330		17,866		29,164		32,934		28,744		28,215		1,281		151,534

	Farmland	Acceptable credit quality	18,556		6,846		3,873		8,803		6,013		23,921		1,814		69,826
		Special mention	274		1,387		180		38		298		784		—		2,961
		Substandard	2,241		307		802		127		877		2,435		155		6,944
		Substandard – nonaccrual	—		—		—		—		—		—		—		—
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	21,071		8,540		4,855		8,968		7,188		27,140		1,969		79,731

Construction and land development		Acceptable credit quality	36,488		83,440		11,625		3,554		2,506		4,263		15,941		157,817
		Special mention	—		—		454		—		—		—		—		454
		Substandard	1,386		8,875		—		—		—		914		—		11,175
		Substandard – nonaccrual	—		242		—		—		152		2,430		—		2,824
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	467		—		—		—		—		—		—		467
		Subtotal	38,341		92,557		12,079		3,554		2,658		7,607		15,941		172,737

Total		Acceptable credit quality	839,483		527,458		225,100		228,072		201,919		353,773		634,529		3,010,334
		Special mention	7,747		24,964		21,239		8,423		20,677		28,093		17,315		128,458
		Substandard	15,973		39,114		19,493		24,163		34,161		55,622		20,688		209,214
		Substandard – nonaccrual	500		2,782		1,552		1,177		11,552		16,114		1,682		35,359
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	920		—		—		—		—		—		—		920
Total Commercial loans			$	864,623	$	594,318	$	267,384	$	261,835	$	268,309	$	453,602	$	674,214	$	3,384,285


	2019
(dollars in thousands)	Commercial		Commercial real estate		Construction and land development		Total
Acceptable credit quality	$	748,296	$	1,536,127	$	218,798	$	2,503,221
Special mention	35,103		15,306		3,448		53,857
Substandard	14,139		46,976		—		61,115
Substandard – nonaccrual	8,489		21,494		1,171		31,154
Doubtful	—		—		—		—
Not graded	—		—		481		481
Total (excluding PCI)	$	806,027	$	1,619,903	$	223,898	$	2,649,828

The Company evaluates the credit quality of its other loan portfolio, which includes residential real estate, consumer and lease financing loans, based primarily on the aging status of the loan and payment activity. Accordingly, loans on nonaccrual status, loans past due 90 days or more and still accruing interest, and loans modified under troubled debt restructurings are considered to be nonperforming for purposes of credit quality evaluation. The following tables present the recorded investment of our other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming at December 31, 2020 and 2019:


			2020
			Term Loans Amortized Cost Basis by Origination Year
			2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
Residential real estate	Residential first lien	Performing	$	32,322	$	27,071	$	49,039	$	99,658	$	81,525	$	58,107	$	405	$	348,127
		Nonperforming	—		196		1,074		933		1,030		6,969		—		10,202
		Subtotal	32,322		27,267		50,113		100,591		82,555		65,076		405		358,329

	Other residential	Performing	975		2,430		3,281		2,091		1,348		1,825		69,773		81,723
		Nonperforming	—		13		21		146		7		165		2,476		2,828
		Subtotal	975		2,443		3,302		2,237		1,355		1,990		72,249		84,551

Consumer	Consumer	Performing	28,449		14,084		16,692		8,737		5,067		3,834		3,476		80,339
		Nonperforming	31		6		57		81		64		63		1		303
		Subtotal	28,480		14,090		16,749		8,818		5,131		3,897		3,477		80,642

	Consumer other	Performing	614,764		117,054		21,394		6,514		6,096		2,480		17,158		785,460
		Nonperforming	—		—		—		—		—		—		—		—
		Subtotal	614,764		117,054		21,394		6,514		6,096		2,480		17,158		785,460

Leases financing		Performing	177,068		125,611		70,059		21,047		12,410		1,259		—		407,454
		Nonperforming	468		192		1,080		600		207		63		—		2,610
		Subtotal	177,536		125,803		71,139		21,647		12,617		1,322		—		410,064

Total
		Performing	853,578		286,250		160,465		138,047		106,446		67,505		90,812		1,703,103
		Nonperforming	499		407		2,232		1,760		1,308		7,260		2,477		15,943
Total other loans			$	854,077	$	286,657	$	162,697	$	139,807	$	107,754	$	74,765	$	93,289	$	1,719,046


	2019
(dollars in thousands)	Residential real estate		Consumer		Lease financing		Total
Performing	$	546,630	$	708,528	$	330,988	$	1,586,146
Impaired	9,024		376		1,593		10,993
Total (excluding PCI)	$	555,654	$	708,904	$	332,581	$	1,597,139

PREMISES AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

PREMISES AND EQUIPMENT, NET

A summary of premises and equipment at December 31, 2020 and 2019 is as follows:


(dollars in thousands)	2020		2019
Land	$	16,158	$	19,123
Buildings and improvements	65,932		77,296
Furniture and equipment	33,202		31,846
Total	115,292		128,265
Accumulated depreciation	(41,168)		(37,210)
Premises and equipment, net	$	74,124	$	91,055

Depreciation expense for the years ended December 31, 2020, 2019 and 2018 was $6.9 million, $6.6 million, and $6.2 million, respectively.

In September 2020, the Company announced a series of planned branch and corporate office reductions as part of our ongoing efforts to enhance efficiencies and financial performance. As part of these reductions we have closed or consolidated 13 branches and have vacated approximately 23,000 square feet of corporate office space. As a result of this plan, the Company recorded $10.4 million of asset impairment on existing bank facilities and corporate offices, which was recognized in other expense in the consolidated statements of income, reclassified $2.3 million of branch and corporate office related assets as held for sale from premises and equipment to other assets on the consolidated balance sheet as of December 31, 2020.

During the third quarter of 2019, the Company committed to a branch network consolidation plan, which included the closing of one facility and consolidation of two additional facilities during the fourth quarter of 2019 as a result of the acquisition of HomeStar, as further discussed in Note 2 to the consolidated financial statements. The Company also consolidated three other existing facilities in other areas of its footprint; one of which closed in 2019 and the remaining two facilities closed in the first quarter of 2020. Consequently, during the year ended December 31, 2019, the Company recorded $3.2 million of asset impairment on banking facilities to be closed, which was recognized in other expense in the consolidated statements of income.

Assets held for sale were $4.2 million and $4.0 million at December 31, 2020 and 2019, respectively, which are included in other assets in our consolidated balance sheets.

LEASES

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

LEASES

The Company had operating lease ROU assets of $9.2 million and $14.2 million as of December 31, 2020 and 2019, respectively and operating lease liabilities totaled $12.0 million and $15.4 million at the same dates, respectively. As a result of the branch and corporate office reductions discussed in Note 6, the Company recorded $2.4 million of asset impairment on existing ROU assets, which was recognized in other expense in the consolidated statements of income.

The operating leases, primarily for banking offices and operating facilities, have remaining lease terms of 8 months to 12 years, some of which may include options to extend the lease terms for up to an additional 10 years. The options to extend are included if they are reasonably certain to be exercised.

Information related to operating leases for the years ended December 31, 2020 and 2019 was as follows:


(dollars in thousands)	2020			2019
Operating lease cost	$	2,943		$	2,752
Operating cash flows related to leases	3,280			3,241
Right-of-use assets obtained in exchange for lease obligations	1,616			18,482
Right-of-use assets derecognized due to terminations or impairment	(4,467)			—
Weighted average remaining lease term	8.10 years			8.00 years
Weighted average discount rate	2.90		%	2.98		%

Net rent expense under operating leases, included in occupancy and equipment expense, was $2.3 million, $2.8 million and $3.2 million for the years ended December 31, 2020, 2019 and 2018, respectively.

The projected minimum rental payments under the terms of the leases as of December 31, 2020 are as follows:


(dollars in thousands)	Amount
Year ending December 31,
2021	$	2,200
2022	2,184
2023	1,899
2024	1,546
2025	762
Thereafter	4,924
Total future minimum lease payments	13,515
Less imputed interest	(1,557)
Total operating lease liabilities	$	11,958

LOAN SERVICING RIGHTS

12 Months Ended

Dec. 31, 2020

Transfers and Servicing [Abstract]

LOAN SERVICING RIGHTS

Commercial FHA Mortgage Loan Servicing

The Company serviced commercial FHA mortgage loans for others with unpaid principal balances of approximately $3.50 billion and $4.08 billion at December 31, 2020 and 2019, respectively. Changes in our commercial FHA loan servicing rights for the years ended December 31, 2020, 2019 and 2018 are summarized as follows:


(dollars in thousands)	2020		2019		2018
Loan servicing rights:
Balance, beginning of period	$	57,637	$	56,252	$	55,714
Originated servicing	1,128		4,124		3,174
Amortization	(3,162)		(2,739)		(2,636)
Permanent impairment	(17,281)		—		—
Balance, end of period	38,322		57,637		56,252
Valuation allowances:
Balance, beginning of period	4,944		2,805		3,254
Additions	12,337		2,698		931
Reductions	(17,281)		(559)		(1,380)
Balance, end of period	—		4,944		2,805
Loan servicing rights, net	$	38,322	$	52,693	$	53,447
Fair value:
At beginning of period	$	52,693	$	53,447	$	52,460
At end of period	$	38,322	$	52,693	$	53,447

The fair value of commercial FHA loan servicing rights is determined using key assumptions, representing both general economic and other published information, including the assumed earnings rates related to escrow and replacement reserves, and the weighted average characteristics of the commercial portfolio, including the prepayment rate and discount rate. The prepayment rate considers many factors as appropriate, including lockouts, balloons, prepayment penalties, interest rate ranges, delinquencies and geographic location. The discount rate is based on an average pre-tax internal rate of return utilized by market participants in pricing the servicing portfolio. Significant increases or decreases in any one of these assumptions would result in a significantly lower or higher fair value measurement. The weighted average prepayment rate was 8.18% and 8.20% at December 31, 2020 and 2019, respectively, while the weighted average discount rate was 11.48% and 11.02% for the same periods, respectively.

United States Small Business Administration Loan Servicing

At December 31, 2020 and 2019, the Company serviced SBA loans for others with unpaid principal balances of $49.2 million and $48.2 million, respectively. At December 31, 2020 and 2019, SBA loan servicing rights of $1.0 million and $1.1 million, respectively, are reflected in loan servicing rights in the consolidated balance sheet.

Residential Mortgage Loan Servicing

At December 31, 2020 and 2019, the Company serviced residential mortgage loans for others with unpaid principal balances of $382.3 million and $381.6 million, respectively. During the years ended December 31, 2019 and 2018, the Company sold mortgage servicing rights held for sale of $3.3 million and $10.2 million, respectively, while no mortgage servicing rights held for sale were sold in the year ended December 31, 2020. At December 31, 2020 and 2019, residential mortgage servicing rights of $0.9 million and $2.0 million, respectively, are reflected in other assets in the consolidated balance sheet.

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

At December 31, 2020 and 2019, goodwill totaled $161.9 million and $171.8 million, respectively. On August 28, 2020, the Company announced that it had completed the sale of its commercial FHA origination platform to Dwight Capital, a nationwide mortgage banking firm headquartered in New York. As a result of this sale, the $10.9 million of goodwill recorded at the Commercial FHA origination and servicing segment was derecognized. Goodwill is tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. The Company performed its most recent annual goodwill impairment test as of August 31, 2020 and concluded that no impairment existed as of that date. No events or circumstances since the August 31, 2020 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists, for any of the Company's segments.

The carrying amount of goodwill by segment at December 31, 2020 and 2019 is summarized as follows:


(dollars in thousands)	2020		2019
Banking	$	157,158	$	156,120
Commercial FHA origination and servicing	—		10,892
Wealth management	4,746		4,746
Total goodwill	$	161,904	$	171,758

The Company’s intangible assets consist of core deposit and customer relationship intangibles. Intangible assets are assessed for impairment at least annually or more frequently if events and circumstances exists that indicate that an intangible impairment test should be performed. The Company has not identified any events or changes in circumstances that would indicate a change in the recoverability of the carrying value of intangible assets and, therefore, no impairment was recognized during 2020 or 2019.

The Company's intangible assets as of December 31, 2020 and 2019 are summarized as follows:


	2020						2019
(dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Total		Gross Carrying Amount		Accumulated Amortization		Total
Core deposit intangibles	$	57,012	$	(36,005)	$	21,007	$	57,012	$	(30,674)	$	26,338
Customer relationship intangibles	14,071		(6,696)		7,375		14,071		(5,523)		8,548
Total intangible assets	$	71,083	$	(42,701)	$	28,382	$	71,083	$	(36,197)	$	34,886

Amortization of intangible assets was $6.5 million, $7.1 million and $7.0 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Estimated amortization expense for future years is as follows:


(dollars in thousands)	Amount
Year ending December 31,
2021	$	5,675
2022	4,900
2023	4,125
2024	3,409
2025	2,659
Thereafter	7,614
Total	$	28,382

DERIVATIVE INSTRUMENTS

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

As part of the Company’s overall management of interest rate sensitivity, the Company utilizes derivative instruments to minimize significant, unanticipated earnings fluctuations caused by interest rate volatility, including interest rate lock commitments, forward commitments to sell mortgage-backed securities, cash flow hedges and interest rate swap contracts.

Interest Rate Lock Commitments / Forward Commitments to Sell Mortgage-Backed Securities

The Company issues interest rate lock commitments on originated fixed-rate commercial and residential real estate loans to be sold. The interest rate lock commitments and loans held for sale are hedged with forward contracts to sell mortgage-backed securities. The fair value of the interest rate lock commitments and forward contracts to sell mortgage-backed securities are included in other assets or other liabilities in the consolidated balance sheets. Changes in the fair value of derivative financial instruments are recognized in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income.

The following tables summarize the interest rate lock commitments and forward commitments to sell mortgage-backed securities held by the Company, their notional amount and estimated fair values at December 31, 2020 and 2019:


	Notional Amount				Fair Value Gain
(dollars in thousands)	2020		2019		2020		2019
Derivative Instruments (included in other assets):
Interest rate lock commitments	$	136,227	$	222,654	$	2,217	$	3,350
Forward commitments to sell mortgage-backed securities	218,126		221,052		—		—
Total	$	354,353	$	443,706	$	2,217	$	3,350


	Notional Amounts				Fair Value Loss
(dollars in thousands)	2020		2019		2020		2019
Derivative Instruments (included in other liabilities):
Forward commitments to sell mortgage-backed securities	$	33,240	$	—	$	309	$	—

During the years ended December 31, 2020, 2019 and 2018, the Company recognized net losses of $1.4 million, $1.1 million and $2.0 million, respectively, on derivative instruments in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income.

Cash Flow Hedges

In the second quarter of 2020, the Company entered into interest rate swap agreements, which qualify as cash flow hedges, to manage the risk of changes in future cash flows due to interest rate fluctuations. These derivative financial instruments at December 31, 2020 consisted of $100.0 million notional amount of pay-fixed, receive-variable interest rate swaps on certain FHLB advances. The interest rate swaps have an average remaining life of 5.3 years, a weighted average pay rate of 0.57% and a weighted average receive rate of 0.22%. In addition, the Company has entered into $140.0 million notional amount of future starting pay-fixed, receive-variable interest rate swaps on certain FHLB or other fixed-rate advances. These swaps are effective beginning in April 2023. The Company pays or receives the net interest amount quarterly based on the respective hedge agreement and includes the amount as part of FHLB advances interest expense on the consolidated statements of income.

Quarterly, the effectiveness evaluation is based on the fluctuation of the interest the Company pays to the FHLB for the debt as compared to the three-month LIBOR interest received from the counterparty. At December 31, 2020, the $0.4 million fair value of the cash flow hedges was included in other assets in the consolidated balance sheets. The tax effected amount of $0.3 million was included in accumulated other comprehensive income. There were no amounts recorded in the consolidated statements of income for the year ended December 31, 2020, related to ineffectiveness.

Interest Rate Swap Contracts

The Company entered into interest rate swap contracts sold to commercial customers who wish to modify their interest rate sensitivity. These swaps are offset by contracts simultaneously purchased by the Company from other financial dealer institutions with mirror-image terms. Because of the mirror-image terms of the offsetting contracts, in addition to collateral provisions which mitigate the impact of non-performance risk, changes in the fair value subsequent to initial recognition have a minimal effect on earnings. These derivative contracts do not qualify for hedge accounting.

The notional amounts of these customer derivative instruments and the offsetting counterparty derivative instruments were $8.5 million and $9.0 million at December 31, 2020 and 2019, respectively. The fair value of the customer derivative instruments and the offsetting counterparty derivative instruments was $0.8 million and $0.3 million at December 31, 2020 and 2019, respectively, which are included in other assets and other liabilities, respectively, on the consolidated balance sheets.

DEPOSITS

12 Months Ended

Dec. 31, 2020

Deposits [Abstract]

DEPOSITS

The following table summarizes the classification of deposits at December 31, 2020 and 2019:


(dollars in thousands)	2020		2019
Noninterest-bearing demand	$	1,469,579	$	1,019,472
Interest-bearing:
Checking	1,568,888		1,342,788
Money market	785,871		787,662
Savings	597,966		522,456
Time	678,712		871,876
Total deposits	$	5,101,016	$	4,544,254

Included in time deposits are time certificates of $250,000 or more and brokered certificates of deposits of $88.3 million and $22.8 million as of December 31, 2020, respectively, and $122.7 million and $49.7 million as of December 31, 2019, respectively.

Investment securities with a carrying amount of $327.0 million and $234.1 million were pledged for public deposits at December 31, 2020 and 2019, respectively. Standby letters of credit issued by the FHLB on our behalf of $80.0 million were pledged for public deposits at December 31, 2019. No standby letters of credit were pledged at December 31, 2020.

As of December 31, 2020, the scheduled maturities of time deposits were as follows:


(dollars in thousands)	Amount
Year Ending December 31,
2021	$	540,932
2022	84,818
2023	31,779
2024	9,420
2025	11,711
Thereafter	52
Total	$	678,712

SHORT-TERM BORROWINGS

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

SHORT-TERM BORROWINGS

The following table presents the distribution of short-term borrowings and related weighted average interest rates for each of the years ended December 31, 2020 and 2019:


	Repurchase Agreements
(dollars in thousands)	2020			2019
Outstanding at period-end	$	68,957		$	82,029
Average amount outstanding	60,306			121,168
Maximum amount outstanding at any month end	77,136			138,907
Weighted average interest rate:
During period	0.30		%	0.69		%
End of period	0.12		%	0.67		%

Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature within one to four days from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction, which represents the amount of the Bank’s obligation. The Bank may be required to provide additional collateral based on the fair value of the underlying securities. Investment securities with a carrying amount of $76.5 million and $87.4 million at December 31, 2020 and 2019, respectively, were pledged for securities sold under agreements to repurchase.

The Company had available lines of credit of $54.4 million and $21.6 million at December 31, 2020 and 2019, respectively, from the Federal Reserve Discount Window. The lines are collateralized by a collateral agreement with respect to a pool of commercial real estate loans totaling $68.1 million and $24.3 million at December 31, 2020 and 2019, respectively. There were no outstanding borrowings at December 31, 2020 and 2019.

At December 31, 2020, the Company had PPP loans available to be pledged to the Paycheck Protection Program Liquidity Facility ("Facility") that would allow the Company to borrow up to $184.4 million. However, no PPP loans were pledged as of December 31, 2020. Under the Facility, the Company can pledge its PPP loans to the Federal Reserve Bank as collateral for available advances. PPP loans pledged as collateral to secure extensions of credit under the Facility are valued at the principal amount of the PPP loan.

At December 31, 2020, the Company had federal funds lines of credit totaling $20.0 million. These lines of credit were unused at December 31, 2020.

FHLB ADVANCES AND OTHER BORROWINGS

12 Months Ended

Dec. 31, 2020

FHLB ADVANCES AND OTHER BORROWINGS

FHLB ADVANCES AND OTHER BORROWINGS

The following table summarizes our FHLB advances and other borrowings at December 31, 2020 and 2019:


(dollars in thousands)	2020		2019
Midland States Bancorp, Inc.

Series G redeemable preferred stock – 171 and 181 shares at December 31, 2020 and 2019, respectively at $1,000 per share	$	171	$	181
Midland States Bank
FHLB advances – fixed rate, fixed term at rates averaging 0.24% and 2.56% at December 31, 2020 and 2019, respectively – maturing through May 2021	304,000		28,130
FHLB advances – putable fixed rate at rates averaging 2.01% and 2.34% at December 31, 2020 and 2019, respectively – maturing through February 2030 with call provisions through August 2021	475,000		465,000
Total FHLB advances and other borrowings	$	779,171	$	493,311

The Company’s advances from the FHLB are collateralized by a blanket collateral agreement of qualifying mortgage and home equity line of credit loans and certain commercial real estate loans totaling $1.86 billion and $1.94 billion at December 31, 2020 and 2019, respectively.

Contractual payments over the next five years for FHLB advances and other borrowings were as follows:


(dollars in thousands)	Amount
Year Ending December 31,
2021	$	304,000
2022	—
2023	225,000
2024	70,000
2025	80,000
Thereafter	100,171
Total	$	779,171

SUBORDINATED DEBT

12 Months Ended

Dec. 31, 2020

Subordinated Borrowings [Abstract]

SUBORDINATED DEBT

The following table summarizes the Company’s subordinated debt at December 31, 2020 and 2019:


(dollars in thousands)	2020		2019
Subordinated debt issued June 2015 – fixed interest rate of 6.00% through June 2020 and a variable interest rate equivalent to three month LIBOR plus 4.35% thereafter, which was 4.59% at December 31, 2020, $31,075 and $38,325 at December 31, 2020 and 2019, respectively – maturing June 18, 2025	$	31,075	$	38,273
Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $550 – maturing June 18, 2025	545		544
Subordinated debt issued October 2017 - fixed interest rate of 6.25% through October 2022 and a variable interest rate equivalent to three month LIBOR plus 4.23% thereafter, $40,000 – maturing October 15, 2027	39,561		39,496
Subordinated debt issued September 2019 – fixed interest rate of 5.00% through September 2024 and a variable interest rate equivalent to three month SOFR plus 3.61% thereafter, $72,750 – maturing September 30, 2029	71,785		71,549
Subordinated debt issued September 2019 – fixed interest rate of 5.50% through September 2029 and a variable interest rate equivalent to three month SOFR plus 4.05% thereafter, $27,250 – maturing September 30, 2034	26,829		26,791
Total subordinated debt	$	169,795	$	176,653

In June 2015, the Company issued, through a private placement, $55.3 million aggregate principal amount of subordinated debentures. The transaction was structured in two tranches: (1) $40.3 million, maturing on June 18, 2025 with a redemption option on or after June 18, 2020, with a fixed rate of interest of 6.00% for the first five years, payable semiannually in arrears beginning December 18, 2015, and a floating rate of interest equivalent to the three-month LIBOR plus 435 basis points thereafter, payable quarterly beginning on September 18, 2020; and (2) $15.0 million, maturing on June 18, 2025, with a fixed rate of interest of 6.50%, payable semiannually in arrears beginning December 18, 2015. The value of the subordinated

debentures was reduced by $0.9 million of debt issuance costs, which are being amortized on a straight line basis through the earlier of the redemption option or maturity date of the subordinated debentures. During the fourth quarter of 2019, the Company repurchased $2.0 million of the $40.3 million subordinated debentures and during the first quarter of 2020 repurchased an additional $7.3 million of the remaining $38.3 million. The Company recognized losses of $1.4 million and $0.2 million, respectively, which included the premium paid for the repurchase and the remaining unamortized debt issuance costs on such repurchases. The Company also repurchased $14.5 million of the $15.0 million subordinated debentures during the fourth quarter of 2019 and recognized a loss of $0.4 million which included the premium paid for the repurchase and the remaining unamortized debt issuance costs on such repurchases. These losses were recognized in other noninterest expense in the consolidated statements of income.

On October 13, 2017, the Company issued, through a private placement, $40.0 million aggregate principal amount of subordinated debentures with a maturity date of October 15, 2027. The subordinated debentures bear a fixed rate of interest of 6.25% for the first five years, payable semiannually in arrears beginning April 15, 2018, and a floating rate of interest equal to the three-month LIBOR plus 422.9 basis points thereafter, payable quarterly in arrears beginning January 15, 2023. The subordinated debentures will be redeemable by the Company, in whole or in part, on or after October 15, 2022, and are not subject to redemption at the option of the holders. The value of the subordinated debentures was reduced by $0.6 million of debt issuance costs, which are being amortized on a straight line basis through the maturity of the subordinated debentures.

On September 20, 2019, the Company issued, through a private placement, $100.0 million aggregate principal amount of subordinated debentures. The transaction was structured in two tranches: (1) $72.8 million, maturing on September 30, 2029 with a redemption option on or after September 30, 2024, with a fixed rate of interest of 5.00% for the first five years, payable semiannually in arrears beginning March 30, 2020, and a floating rate of interest equivalent to the three-month Secured Overnight Financing Rate (“SOFR”) plus 361.0 basis points thereafter, payable quarterly in arrears beginning on December 30, 2024; and (2) $27.3 million, maturing on September 30, 2034 with a redemption option on or after September 30, 2029, with a fixed rate of interest of 5.50% for the first ten years, payable semiannually in arrears beginning March 30, 2020, and a floating rate of interest equivalent to the three-month SOFR plus 404.5 basis points thereafter, payable quarterly in arrears beginning on December 30, 2029. The value of the subordinated debentures was reduced by $1.6 million of debt issuance costs, which are being amortized on a straight line basis through the redemption option of the subordinated debentures.

All of the subordinated debentures mentioned above may be included in Tier 2 capital (with certain limitations applicable) under current regulatory guidelines and interpretations.

TRUST PREFERRED DEBENTURES

12 Months Ended

Dec. 31, 2020

TRUST PREFERRED DEBENTURES

TRUST PREFERRED DEBENTURES

The following table summarizes the Company’s trust preferred debentures at December 31, 2020 and 2019:


(dollars in thousands)	2020		2019
Midland States Preferred Securities Trust – variable interest rate equal to LIBOR plus 2.75%, which was 2.96% and 4.68% at December 31, 2020 and 2019, respectively – $10,310 maturing April 23, 2034	$	10,276	$	10,274
Grant Park Statutory Trust I – variable interest rate equal to LIBOR plus 2.85%, which was 3.06% and 4.79%, at December 31, 2020 and 2019, respectively – $3,093 maturing January 23, 2034	2,314		2,263
Love Savings/Heartland Capital Trust III – variable interest rate equal to LIBOR plus 1.75%, which was 1.97% and 3.64% at December 31, 2020 and 2019, respectively – $20,619 maturing December 31, 2036	14,442		14,251
Love Savings/Heartland Capital Trust IV – variable interest rate equal to LIBOR plus 1.47%, which was 1.70% and 3.36% at December 31, 2020 and 2018, respectively – $20,619 maturing September 6, 2037	13,621		13,428
Centrue Statutory Trust II - variable interest rate equal to LIBOR plus 2.65%, which was 2.88% and 4.55% at December 31, 2020 and 2018, respectively - $10,310 maturing June 17, 2034	8,161		8,072
Total trust preferred debentures	$	48,814	$	48,288

On March 26, 2004, the Company formed Midland States Preferred Securities Trust (“Midland Trust”), a statutory trust under the Delaware Statutory Trust Act. Midland Trust issued a pool of $10.0 million of floating rate cumulative trust preferred securities with a liquidation amount of $1,000 per security. The Company issued $10.3 million of subordinated debentures to the Midland Trust in exchange for ownership of all the common securities of the Midland Trust. The Company is not considered the primary beneficiary of the Midland Trust; therefore, the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures, net of unamortized debt issuance costs, are shown as a liability. The Company’s investment in the common stock of the trust was $0.3 million and is included in other assets.

In conjunction with the acquisition of Grant Park Bancshares, Inc. (“Grant Park”) on June 5, 2013, the Company assumed $3.1 million of subordinated debentures that were recorded at a fair value of $1.8 million at the time of acquisition. On December 19, 2003, Grant Park Statutory Trust I (“Grant Park Trust”) issued 3,000 shares of preferred securities with a

liquidation amount of $1,000 per security. Grant Park issued $3.1 million of subordinated debentures to the Grant Park Trust in exchange for ownership of all the common securities of the trust. The Company is not considered the primary beneficiary of the Grant Park Trust; therefore, the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures, net of unamortized purchase discount, are shown as a liability. The Company’s investment in the common stock of the trust was $0.1 million and is included in other assets.

In conjunction with the acquisition of Love Savings Holding Company (“LSHC”) on December 31, 2014, the Company assumed $41.2 million of subordinated debentures that were recorded at a fair value of $26.1 million at the time of acquisition. On November 30, 2006, Love Savings/Heartland Capital Trust III (“LSHC Trust III”) issued 20,000 shares of capital securities with a liquidation amount of $1,000 per security. LSHC issued $20.6 million of subordinated debentures to LSHC Trust III in exchange for ownership of all the common securities of the trust. On June 6, 2007, Love Savings/Heartland Capital Trust IV (“LSHC Trust IV”) issued 20,000 shares of capital securities with a liquidation amount of $1,000 per security. LSHC issued $20.6 million of subordinated debentures to LSHC Trust IV in exchange for ownership of all the common securities of the trust. The Company is not considered the primary beneficiary of LSHC Trust III or LSHC Trust IV; therefore, the trusts are not consolidated in the Company’s financial statements, but rather the subordinated debentures, net of unamortized purchase discount, are shown as a liability. The Company’s investment in the common stock of the trusts was $1.2 million and is included in other assets.

In conjunction with the acquisition of Centrue on June 9, 2017, the Company assumed $10.3 million of subordinated debentures that were recorded at a fair value of $7.6 million at the time of acquisition. In April 2004, Centrue Statutory Trust II (“Centrue Trust II”) issued 10,000 shares of trust preferred securities with a liquidation amount of $1,000 per preferred security. Centrue issued $10.3 million of subordinated debentures to Centrue Trust II in exchange for ownership of all the common securities of the trust. The Company is not considered the primary beneficiary of Centrue Trust II; therefore, the trust is not consolidated in the Company’s consolidated financial statements, but rather the subordinated debentures, net of unamortized purchase discount, are shown as a liability, and the Company’s investment in the common stock of Centrue Trust II of $0.3 million is included in other assets.

For all of the debentures mentioned above, interest is payable quarterly. The debentures and the common securities issued by each of the trusts are redeemable in whole or in part on dates each quarter at the redemption price plus interest accrued to the redemption date, as specified in the trust indenture document. The debentures are also redeemable in whole or in part from time to time upon the occurrence of “special events” defined within the indenture document. Subject to certain exceptions and limitations, the Company may, from time to time, defer subordinated debenture interest payments, which would result in a deferral of distribution payments on the related trust preferred securities, and, with certain exceptions, prevent the Company from declaring or paying cash distributions on common stock or debt securities that rank pari passu or junior to the subordinated debentures.

All of the subordinated debentures mentioned above may be included in Tier 1 capital (with certain limitations applicable) under current regulatory guidelines and interpretations.

INCOME TAXES

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

The components of income taxes for the years ended December 31, 2020, 2019 and 2018 were as follows:


(dollars in thousands)	2020		2019		2018
Federal:
Current	$	10,924	$	2,318	$	55
Deferred	(3,852)		8,287		6,748
State:
Current	1,271		1,761		807
Deferred	1,134		4,321		3,774
Total income tax expense	$	9,477	$	16,687	$	11,384

The Company’s income tax expense differed from the statutory federal rate of 21% for the years ended December 31, 2020, 2019 and 2018 as follows:


(dollars in thousands)	2020		2019		2018
Expected income taxes	$	6,723	$	15,218	$	10,665
Less income tax effect of:
Tax-exempt income, net	(2,398)		(2,568)		(2,622)

State tax, net of federal benefit	1,900		4,805		4,028

Equity-based compensation benefit	239		(484)		(62)
Non-deductible transaction costs	—		110		71
Disposition of nondeductible goodwill	2,287		—		—
Valuation allowance	10		62		(409)

Other	716		(456)		(287)
Actual income tax expense	$	9,477	$	16,687	$	11,384

Deferred tax assets, net in the accompanying consolidated balance sheets at December 31, 2020 and 2019 include the following amounts of deferred tax assets and liabilities:


(dollars in thousands)	2020		2019
Assets:
Allowance for credit losses on loans	$	16,622	$	7,708
Deferred compensation	2,152		2,332
Loans	2,772		5,386

Tax credits	1,047		1,049



Net operating losses	11,231		15,510



Fair value adjustment on investments	1,067		1,217
Premises and equipment	433		—

Operating lease liabilities	3,289		4,227
Other, net	3,861		2,961
Deferred tax assets	42,474		40,390
Valuation allowance	(71)		(62)
Deferred tax assets, net of valuation allowance	42,403		40,328
Liabilities:
Premises and equipment	—		1,735
Unrealized gain on securities	4,169		2,846
Mortgage servicing rights	8,315		11,436
Fair value adjustment on trust preferred debentures	4,417		4,560

Deferred loan costs, net of fees	3,632		3,539
Intangible assets	6,921		8,380


Software development costs	1,522		1,638
Leased equipment	17,910		12,313
Operating lease right-of-use assets	2,524		3,912
Other, net	1,315		1,247
Deferred tax liabilities	50,725		51,606
Deferred tax liabilities, net	$	(8,322)	$	(11,278)

At December 31, 2020 and 2019, the accumulation of the prior year’s earnings representing tax bad debt deductions was approximately $3.1 million for both years. If these tax bad debt reserves were charged for losses other than bad debt losses, the Company would be required to recognize taxable income in the amount of the charge. It is not expected that such tax-restricted retained earnings will be used in a manner that would create federal income tax liabilities.

The tax expense associated with the disposition of nondeductible goodwill is related to Love Funding Corporation's asset disposition discussed in Note 2.

The Company had $51.0 million of federal net operating loss carryforwards expiring 2022 through 2035, $7.0 million of Illinois post-apportioned net operating loss carryforwards expiring in 2025 and 2026, and $51.0 million of Missouri pre-

apportioned net operating loss carryforwards expiring 2021 through 2035, at December 31, 2020. The utilization of the federal and Missouri net operating losses are subject to the limitations of Internal Revenue Code Section 382.

At December 31, 2019, the Company had a federal alternative minimum tax credit carryforward of $1.6 million presented in income taxes receivable. The Company made the election to recover one hundred percent of this credit for the 2018 tax year pursuant to IRC Section 53(e)(5) as amended by the CARES Act signed into law on March 27, 2020. In making the election, the Company recovered the original credit carry forward to tax year 2019 in the 2018 tax year.

The Company has state tax credit carryforwards of $1.3 million with a 5 year carryforward period, expiring between 2021 and 2025. Any amounts that are expected to expire before being fully utilized have been accounted for through a valuation allowance as discussed below.

We had no unrecognized tax benefits as of December 31, 2020 and 2019, and did not recognize any increase of unrecognized benefits during 2020 relative to any tax positions taken during the year.

Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is our policy to record such accruals in other income or expense; no such accruals existed as of December 31, 2020 and 2019.

Future realization of the tax benefit of an existing deductible temporary difference or carryforward ultimately depends on the existence of sufficient taxable income of the appropriate character within the carryback or carryforward period available under the tax law. All available evidence, both positive and negative, should be considered to determine whether, based on the weight of that evidence, a valuation allowance is needed. At December 31, 2020, the Company concluded, based on all available evidence, a valuation allowance was needed for the Company’s deferred tax asset related to capital loss carry forwards. An addition was made to the $0.1 million valuation allowance from December 31, 2019 in the amount of $0.01 million, resulting in a valuation allowance of $0.1 million at December 31, 2020 for the estimated capital losses that will not be able to be utilized in the future. For the Company's remaining deferred tax assets, based on our taxpaying history and estimates of taxable income over the years in which the items giving rise to the deferred tax assets are deductible, management believes it is more likely than not that we will realize the benefits of these deductible differences.

The Company is subject to U.S. federal income tax as well as income tax of various states. Years that remain open for potential review by the Internal Revenue Service are 2017 through 2019 and by state taxing authorities are 2016 through 2019.

RETIREMENT PLANS	12 Months Ended
RETIREMENT PLANS	Dec. 31, 2020
Retirement Benefits [Abstract]
RETIREMENT PLANS	RETIREMENT PLANS We sponsor the Midland States Bank 401(k) Profit Sharing Plan, which provides retirement benefits to substantially all of our employees. There were no employer discretionary profit sharing contributions made to the 401(k) plan in 2020, 2019 and 2018. The 401(k) component of the plan allows participants to defer a portion of their compensation ranging from 1% to 100%. Such deferrals accumulate on a tax deferred basis until the participant withdraws the funds. The Company matches 50% of participant contributions up to 6% of their compensation. Total expense recorded for the Company match was $1.7 million, $1.7 million and $1.8 million for the years ended December 31, 2020, 2019 and 2018, respectively. Certain directors and executive officers participate in a nonqualified deferred compensation arrangement. Through May 1, 2019, we matched 25% of the amount deferred by directors who deferred all of their director fees into a Company stock unit account. At December 31, 2020 and 2019, the accrued liability for these arrangements totaled $4.6 million and $5.0 million, respectively, and was reflected in other liabilities in the consolidated balance sheets. Expenses associated with these arrangements were $0.9 million, $0.8 million and $0.8 million for the years ended December 31, 2020, 2019 and 2018, respectively. During the years ended December 31, 2020, 2019 and 2018, there were distributions made of $1.3 million, $0.1 million and $0.4 million, respectively. In November 2015, the Company entered into a supplemental retirement agreement with its former Chief Executive Officer (“Former CEO”). Pursuant to the agreement, the Former CEO (who retired on December 31, 2018) received supplemental retirement payments in 2020 and 2019 equal to $0.2 million and $0.3 million, respectively, and is eligible to receive supplemental retirement payments in 2021 equal to $0.2 million. The Company expensed $0.3 million for the year ended December 31, 2018 for this arrangement, with no expense in the years ended December 31, 2020 or 2019. Midland participates in the Pentegra Defined Benefit Plan for Financial Institutions, a noncontributory defined benefit pension plan for certain former employees of Heartland Bank who have met prescribed eligibility requirements. The multiple-employer plan operates as a single plan under Internal Revenue Code Section 413(c) and, as a result, all of the amounts contributed by the participating institutions are maintained in the aggregate. The plan is funded based on an annual valuation performed by the plan administrator. Benefits under the plan were frozen in 2004. The funded status of the plan (market value of assets divided by funding target) was 117.60% as of July 1, 2020, the latest actuarial valuation date. Future costs for administration, shortfalls in funds to maintain the frozen level of benefit coverage and differences of actuarial assumptions related to the frozen benefits will be expensed as incurred. The minimum required contribution for these costs in 2020 and 2019 was $0.2 million and $0.1 million, respectively.

SHARE BASED COMPENSATION

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

The Company awards select employees and directors certain forms of share-based incentives under a long-term incentive plan approved by the Company’s shareholders. On May 3, 2019, the shareholders approved the Midland States Bancorp, Inc. 2019 Long-Term Incentive Plan (“2019 Incentive Plan”). The 2019 Incentive Plan made available 1,000,000 shares to be issued to selected employees and directors of, and service providers to, the Company or its subsidiaries. The granting of awards under this plan can be in the form of stock options, stock appreciation rights, stock awards and cash incentive awards. The awards are granted by the compensation committee, which is comprised of members of the board of directors.

Previously, the Company granted equity awards under the Midland States Bancorp, Inc. Second Amended and Restated 2010 Long-Term Incentive Plan (“2010 Incentive Plan”). The 2010 Incentive Plan, originally effective October 18, 2010, was amended and restated effective February 2, 2016, which made available 2,000,000 shares (the initial 1,000,000 of which were eligible to be granted as incentive stock options) to be issued to select employees and directors in the form of stock options and other equity and cash based awards. Following approval of our 2019 Incentive Plan, no additional awards may be granted from our 2010 Incentive Plan; however, any previously granted award will remain subject to the terms of the 2010 Incentive Plan for so long as they remain outstanding.

Total compensation cost that has been charged against income under the plans was $2.2 million, $2.0 million and $1.8 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Restricted Stock

In 2020 and 2019, the Company granted 94,998 and 129,717 shares of restricted stock awards, respectively. These awards have a vesting period of four years. Compensation expense is recognized over the vesting period of the award based on the fair value of the stock at the date of grant.

A summary of the activity for restricted stock awards and restricted stock unit awards for the year follows:


	Number outstanding	Weighted average grant due fair value
Nonvested, beginning of year	254,057	$	28.24
Granted during the year	94,998	14.85
Vested during the year	74,611	28.42
Forfeited during the year	33,756	28.75
Nonvested, end of year	240,688	22.83

As of December 31, 2020, there was $4.8 million of total unrecognized compensation cost related to the nonvested shares granted under the plans. The cost is expected to be recognized over a weighted average period of 2.7 years.

The weighted average grant date fair value for restricted stock awards was $14.85, $27.67 and $28.47 during the years ended December 31, 2020, 2019 and 2018, respectively.

Stock Options

The Company did not grant stock options in any of the years ended December 31, 2020, 2019 and 2018. All stock options outstanding are related to grants from prior years.

The summary of our stock option activity during the years ended December 31, 2020 and 2019 is as follows:


	2020				2019
	Shares	Weighted average exercise price		Weighted average remaining contractual life	Shares	Weighted average exercise price		Weighted average remaining contractual life
Option outstanding, beginning of year	623,122	$	20.83		1,006,144	$	19.48
Options granted	—	—			—	—
Options exercised	(39,500)	17.90			(360,776)	16.46
Options forfeited	(3,268)	28.89			(16,362)	30.45
Options expired	(112,865)	19.26			(5,884)	31.30
Options outstanding, end of year	467,489	21.40		4.1 years	623,122	20.83		4.8 years
Options exercisable	463,590	21.31		4.1 years	586,081	20.40		4.6 years
Options vested and expected to vest	467,060	21.39		4.1 years	619,032	20.79		4.8 years

The aggregate intrinsic value of options outstanding and exercisable as of December 31, 2020 was $200,000. As of December 31, 2020, there was $4,000 of total unrecognized compensation cost related to nonvested stock options granted under our 2010 Incentive Plan. This cost is expected to be recognized over a period of three months.

The total intrinsic value and cash received from options exercised under share-based payment arrangements was $0.2 million and $0.7 million, respectively, for the year ended December 31, 2020, $3.6 million and $5.9 million, respectively, for the year ended December 31, 2019, and $1.6 million and $1.8 million, respectively, for the year ended December 31, 2018.

The following table summarizes information about the Company’s nonvested stock option activity for 2020:


	Shares	Weighted average grant date fair value
Nonvested at December 31, 2019	37,041	$	3.26
Granted	—	—
Vested	(29,874)	3.09
Forfeited	(3,268)	3.50
Nonvested at December 31, 2020	3,899	4.33

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHAREEarnings per share are calculated utilizing the two-class method. Basic earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards. The diluted earnings per share computation for the years ended December 31, 2020, 2019 and 2018 excluded antidilutive stock options of 364,272, 91,097 and 31,259, respectively, because the exercise prices of these stock options exceeded the average market prices of the Company’s common

shares for those respective years. Presented below are the calculations for basic and diluted earnings per common share for the years ended December 31, 2020, 2019 and 2018:


(dollars in thousands, except share and per share data)	2020		2019		2018
Net income	$	22,537	$	55,784	$	39,421
Preferred dividends declared	—		(191)		(330)
Preferred stock, premium amortization	—		145		189
Net income available to common shareholders	22,537		55,738		39,280
Common shareholder dividends	(24,699)		(23,389)		(19,838)
Unvested restricted stock award dividends	(259)		(210)		(139)
Undistributed earnings to unvested restricted stock awards	—		(267)		(123)
Undistributed earnings to common shareholders	$	(2,421)	$	31,872	$	19,180
Basic
Distributed earnings to common shareholders	$	24,699	$	23,389	$	19,838
Undistributed earnings to common shareholders	(2,421)		31,872		19,180
Total common shareholders earnings, basic	$	22,278	$	55,261	$	39,018
Diluted
Distributed earnings to common shareholders	$	24,699	$	23,389	$	19,838
Undistributed earnings to common shareholders	(2,421)		31,872		19,180
Total common shareholders earnings	22,278		55,261		39,018
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	—		2		2
Total common shareholders earnings, diluted	$	22,278	$	55,263	$	39,020
Weighted average common shares outstanding, basic	23,336,881		24,288,793		23,130,475
Options	9,245		204,638		418,550
Weighted average common shares outstanding, diluted	23,346,126		24,493,431		23,549,025
Basic earnings per common share	$	0.95	$	2.28	$	1.69
Diluted earnings per common share	0.95		2.26		1.66

CAPITAL REQUIREMENTS

12 Months Ended

Dec. 31, 2020

Banking and Thrift [Abstract]

CAPITAL REQUIREMENTS

The Company’s primary source of cash is dividends received from the Bank. The Bank is restricted by Illinois law and regulations of the Illinois Department of Financial and Professional Regulation and the FDIC as to the maximum amount of dividends the Bank can pay to us. As a practical matter, the Bank restricts dividends to a lesser amount because of the need to maintain an adequate capital structure.

We are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet regulatory capital requirements may result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for “prompt corrective action”, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting policies. Our capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Total capital, Tier 1 capital and Common Equity Tier 1 capital to risk-weighted assets (as defined in the regulations), and of Tier 1 capital to average assets (as defined in the regulations).

Beginning on January 1, 2016, a capital conservation buffer became effective for banking organizations. The capital conservation buffer, which consists of Common Equity Tier 1 capital, is not a minimum capital requirement; however, the capital conservation buffer is designed to establish a capital range above minimum requirements to insulate banks from periods of stress and impose constraints on dividends, share repurchases and discretionary bonus payments when capital levels fall below prescribed levels. In order to not be subject to required restrictions on dividends, share repurchases and discretionary bonus payments, banking organizations must maintain minimum ratios of (i) Common Equity Tier 1 capital to risk-weighted

assets of at least 4.5% plus the 2.5% capital conservation buffer, (ii) Tier 1 capital to risk-weighted assets of at least 6.0% plus the 2.5% capital conservation buffer, (iii) Total capital to risk-weighted assets of at least 8.0% plus the 2.5% capital conservation buffer, and (iv) Tier 1 capital to adjusted average consolidated assets of at least 4.0%.

In December 2018, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. In March 2020, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the FDIC published an interim final rule to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The interim final rule maintains the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Company is adopting the capital transition relief over the permissible five-year period.

At December 31, 2020, the Company and the Bank exceeded the regulatory minimums to which they were subject and exceeded the regulatory definition of well-capitalized.

At December 31, 2020 and 2019, the Company’s and the Bank’s actual and required capital ratios were as follows:


	Actual				Fully Phased-In Regulatory Guidelines Minimum				Required to be Well Capitalized Under Prompt Corrective Action Requirements
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2020
Total risk-based capital ratio
Midland States Bancorp, Inc.	$	710,417	13.24	%	$	563,610	10.50	%	N/A		N/A
Midland States Bank	631,585		11.77		563,420		10.50		$	536,591	10.00%
Tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	494,043		9.20		456,256		8.50		N/A		N/A
Midland States Bank	578,681		10.78		456,102		8.50		429,273		8.00
Common equity tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	429,092		7.99		375,740		7.00		N/A		N/A
Midland States Bank	578,681		10.78		375,614		7.00		348,784		6.50
Tier 1 leverage ratio
Midland States Bancorp, Inc.	494,043		7.50		263,651		4.00		N/A		N/A
Midland States Bank	578,681		8.78		263,537		4.00		329,421		5.00

December 31, 2019
Total risk-based capital ratio
Midland States Bancorp, Inc.	$	772,572	14.72	%	$	515,548	10.50	%	N/A		N/A
Midland States Bank	648,291		13.22		515,035		10.50		$	490,509	10.00%
Tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	516,647		10.52		417,348		8.50		N/A		N/A
Midland States Bank	619,019		12.62		416,933		8.50		392,407		8.00
Common equity tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	451,696		9.20		343,699		7.00		N/A		N/A
Midland States Bank	619,019		12.62		343,356		7.00		318,831		6.50
Tier 1 leverage ratio
Midland States Bancorp, Inc.	516,647		8.74		236,504		4.00		N/A		N/A
Midland States Bank	619,019		10.48		236,214		4.00		295,267		5.00

- Definition

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

+ References

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+ Details

FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date reflecting assumptions that a market participant would use when pricing an asset or liability. The hierarchy uses three levels of inputs to measure the fair value of assets and liabilities as follows:

•Level 1: Unadjusted quoted prices for identical assets or liabilities traded in active markets.

•Level 2: Significant other observable inputs other than Level 1, including quoted prices for similar assets and liabilities in active markets, quoted prices in less active markets, or other observable inputs that can be corroborated by observable market data.

•Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

Investment securities. The fair value of investment securities available for sale are determined by quoted market prices, if available (Level 1). For investment securities available for sale where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For investment securities available for sale where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Securities classified as Level 3 are not actively traded, and as a result, fair value is determined utilizing third-party valuation services through consensus pricing. There were no transfers between Levels 1, 2 or 3 during the years ended December 31, 2020 or 2019 for assets measured at fair value on a recurring basis. The fair value of equity securities is determined using quoted prices or market prices for similar securities (Level 2).

Loans held for sale. The fair value of loans held for sale is determined using quoted prices for a similar asset, adjusted for specific attributes of that loan (Level 2).

Derivative instruments. The fair value of derivative instruments are determined based on derivative valuation models using observable market data as of the measurement date (Level 2).

Loan servicing rights. In accordance with GAAP, the Company records impairment charges on loan servicing rights on a non-recurring basis when the carrying value exceeds the estimated fair value. The fair value of our servicing rights is estimated by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration expected mortgage loan prepayment rates, discount rates, servicing costs, replacement reserves and other economic factors which are estimated based on current market conditions (Level 3).

Mortgage servicing rights held for sale. The fair value of mortgage servicing rights held for sale is determined by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows, taking into consideration expected mortgage loan prepayment rates, discount rates, servicing costs and other economic factors which are estimated based on current market conditions, less costs to sell (Level 3).

Nonperforming loans. Nonperforming loans are measured and recorded at fair value on a non-recurring basis. All of our nonaccrual loans and restructured loans are considered nonperforming and are reviewed individually for the amount of impairment, if any. Most of our loans are collateral dependent and, accordingly, we measure nonperforming loans based on the estimated fair value of such collateral. The fair value of each loan’s collateral is generally based on estimated market prices from an independently prepared appraisal, which is then adjusted for the cost related to liquidating such collateral (Level 2). When adjustments are made to an appraised value to reflect various factors such as the age of the appraisal or known changes in the market or the collateral, such valuation inputs are considered unobservable (Level 3). The nonperforming loans categorized as Level 3 also include unsecured loans and other secured loans whose fair values are based significantly on unobservable inputs such as the strength of a guarantor, cash flows discounted at the effective loan rate, and management’s judgment.

Assets held for sale. Assets held for sale represent the fair value of the banking facilities that are expected to be sold. The fair value of the assets held for sale was based on estimated market prices from independently prepared current appraisals (Level 2).

Assets and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and non-recurring basis at December 31, 2020 and 2019, are summarized below:


	2020
(dollars in thousands)	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. government sponsored entities and U.S. agency securities	$	35,567	$	—	$	35,567	$	—
Mortgage-backed securities - agency	344,577		—		344,577		—
Mortgage-backed securities - non-agency	20,744		—		20,744		—
State and municipal securities	129,765		—		129,765		—
Corporate securities	146,058		—		145,099		959
Equity securities	9,424		9,424		—		—
Loans held for sale	138,090		—		138,090		—
Interest rate lock commitments	2,217		—		2,217		—
Interest rate swap contracts	1,206		—		1,206		—
Total	$	827,648	$	9,424	$	817,265	$	959
Liabilities
Forward commitments to sell mortgage-backed securities	$	309	$	—	$	309	$	—
Interest rate swap contracts	803		—		803		—
Total	$	1,112	$	—	$	1,112	$	—

Assets measured at fair value on a non-recurring basis:
Loan servicing rights	$	39,276	$	—	$	—	$	39,276
Mortgage servicing rights held for sale	878		—		—		878
Nonperforming loans	13,333		—		12,054		1,279
Other real estate owned	20,247		—		20,247		—
Assets held for sale	4,157		—		4,157		—


	2019
(dollars in thousands)	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. government sponsored entities and U.S. agency securities	$	60,020	$	—	$	60,020	$	—
Mortgage-backed securities - agency	324,974		—		324,974		—
Mortgage-backed securities - non-agency	17,148		—		17,148		—
State and municipal securities	124,555		—		124,555		—
Corporate securities	122,736		—		121,781		955
Equity securities	5,621		5,621		—		—
Loans held for sale	16,431		—		16,431		—
Interest rate lock commitments	3,350		—		3,350		—
Interest rate swap contracts	306		—		306		—
Total	$	675,141	$	5,621	$	668,565	$	955
Liabilities
Interest rate swap contracts	$	306	$	—	$	306	$	—

Assets measured at fair value on a non-recurring basis:
Loan servicing rights	$	53,824	$	—	$	—	$	53,824
Mortgage servicing rights held for sale	1,972		—		—		1,972
Impaired loans	14,693		—		12,518		2,175

Assets held for sale	3,974		—		3,974		—

The following table provides a reconciliation of activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2020 and 2019:


	Corporate Securities
(dollars in thousands)	2020		2019
Balance, beginning of period	$	955	$	1,923
Total realized in earnings (1)	8		52
Total unrealized in other comprehensive income (2)	4		32
Net settlements (principal and interest)	(8)		(1,052)
Balance, end of period	$	959	$	955

(1)Amounts included in interest income from investment securities taxable in the consolidated statements of income.

(2)Represents change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period.

The following table provides quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured at fair value on a recurring basis at December 31, 2020 and 2019:


(dollars in thousands)	Fair value		Valuation technique	Unobservable input / assumptions	Range (weighted average)(1)
December 31, 2020
Corporate securities	$	959	Consensus pricing	Net market price	(2.0)	%	—	4.9%	(2.0)%

December 31, 2019
Corporate securities	$	955	Consensus pricing	Net market price	(2.0)	%	—	2.5%	(1.5)%

(1)Unobservable inputs were weighted by the relative fair value of the instruments.

The significant unobservable inputs used in the fair value measurement of the Company's corporate securities is net market price. The corporate securities are not actively traded, and as a result, fair value is determined utilizing third-party

valuation services through consensus pricing. Significant changes in any of the inputs in isolation would result in a significant change in the fair value measurement. Generally, net market price increases when market interest rates decline and declines when market interest rates increase.

The following table presents (gains) losses recognized on assets measured on a non-recurring basis for the years ended December 31, 2020, 2019 and 2018:


(dollars in thousands)	2020		2019		2018
Loan servicing rights	$	12,337	$	2,139	$	(449)
Mortgage servicing rights held for sale	1,692		(490)		458
Nonperforming loans	24,611		10,259		5,800
Other real estate owned	1,390		16		301
Assets held for sale	10,404		3,577		—
Total loss on assets measured on a nonrecurring basis	$	50,434	$	15,501	$	6,110

The following table presents quantitative information about significant unobservable inputs used in the fair value measurements of Level 3 assets measured on a non-recurring basis at December 31, 2020 and 2019:


(dollars in thousands)	Fair Value		Valuation technique	Unobservable input / assumptions	Range (weighted average)
December 31, 2020
Loan servicing rights:
Commercial MSR	$	38,322	Discounted cash flow	Prepayment speed	8.00%	-	18.00%	(8.18)%
				Discount rate	10.00%	-	27.00%	(11.48)%

SBA servicing rights	$	954	Discounted cash flow	Prepayment speed	12.01%	-	12.52%	(12.25)%
				Discount rate	No range			(11.00)%

MSR held for sale	$	878	Discounted cash flow	Prepayment speed	14.40%	-	26.28%	(20.34)%
				Discount rate	9.00%	-	11.50%	(10.13)%

December 31, 2019
Loan servicing rights:
Commercial MSR	$	52,693	Discounted cash flow	Prepayment speed	8.00%	-	18.00%	(8.20)%
				Discount rate	10.00%	-	14.00%	(11.02)%

SBA servicing rights	$	1,131	Discounted cash flow	Prepayment speed	8.31%	—	9.21%	(8.60)%
				Discount rate	No range			(11.70)%

MSR held for sale	$	1,972	Discounted cash flow	Prepayment speed	8.64%	—	26.28%	(12.42)%
				Discount rate	9.50%	—	12.50%	(10.75)%

Other:
Impaired loans	$	2,175	Fair value of collateral	Discount for type of property,	4.32%	-	8.00%	(5.22)%
				age of appraisal and current status

ASC Topic 825, Financial Instruments, requires disclosure of the estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate such fair values. Additionally, certain financial instruments and all nonfinancial instruments are excluded from the applicable disclosure requirements.

The Company has elected the fair value option for newly originated residential and commercial loans held for sale. These loans are intended for sale and are hedged with derivative instruments. We have elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplification.

The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected at December 31, 2020 and 2019:


	2020						2019
(dollars in thousands)	Aggregate fair value		Difference		Contractual principal		Aggregate fair value		Difference		Contractual principal
Commercial loans held for sale	$	126,123	$	67	$	126,056	$	8,236	$	206	$	8,030
Residential loans held for sale	11,967		743		11,224		8,195		446		7,749
Total loans held for sale	$	138,090	$	810	$	137,280	$	16,431	$	652	$	15,779

The following table presents the amount of gains (losses) from fair value changes included in income before income taxes for financial assets carried at fair value for the years ended December 31, 2020, 2019 and 2018:


(dollars in thousands)	2020		2019		2018
Commercial loans held for sale	$	(139)	$	(389)	$	252
Residential loans held for sale	318		7		6
Total loans held for sale	$	179	$	(382)	$	258

The carrying values and estimated fair value of financial instruments not carried at fair value at December 31, 2020 and 2019 were as follows:


	2020
(dollars in thousands)	Carrying Amount		Fair Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets
Cash and due from banks	$	337,080	$	337,080	$	337,080	$	—	$	—
Federal funds sold	4,560		4,560		4,560		—		—
Nonmarketable equity securities	56,596		56,596		—		56,596		—
Loans, net	5,042,888		5,006,223		—				5,006,223
Accrued interest receivable	23,545		23,545		—		23,545		—

Liabilities
Deposits	$	5,101,016	$	5,108,360	$	—	$	5,108,360	$	—
Short-term borrowings	68,957		68,957		—		68,957		—
FHLB and other borrowings	779,171		807,493		—		807,493		—
Subordinated debt	169,795		176,504		—		176,504		—
Trust preferred debentures	48,814		50,165		—		50,165		—


	2019
(dollars in thousands)	Carrying Amount		Fair Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets
Cash and due from banks	$	210,780	$	210,780	$	210,780	$	—	$	—
Federal funds sold	2,920		2,920		2,920		—		—
Nonmarketable equity securities	42,472		42,472		—		42,472		—
Loans, net	4,116,648		4,091,438		—		—		4,091,438
Accrued interest receivable	16,560		16,560		—		16,560		—

Liabilities
Deposits	$	4,074,170	$	4,069,098	$	—	$	4,069,098	$	—
Short-term borrowings	124,235		124,235		—		124,235		—
FHLB and other borrowings	640,631		641,050		—		641,050		—
Subordinated debt	94,134		91,926		—		91,926		—
Trust preferred debentures	47,794		56,805		—		56,805		—

In accordance with our adoption of ASU 2016-1 in 2019, the methods utilized to measure the fair value of financial instruments at December 31, 2020 and 2019 represent an approximation of exit price; however, an actual exit price may differ.

- Definition

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

+ References + Details

COMMITMENTS, CONTINGENCIES AND CREDIT RISK

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS, CONTINGENCIES AND CREDIT RISK

COMMITMENTS, CONTINGENCIES AND CREDIT RISKAs previously disclosed, a novel strain of coronavirus, COVID-19, was reported in Wuhan, China and continues to unfold across the U.S. The spread of the COVID-19 virus had an impact on our operations as of December 31, 2020, and the Company expects that the virus will continue to have an impact on the business, financial condition, and results of operations of the Company and its customers. The COVID-19 pandemic caused changes in the behavior of customers, businesses, and their employees, including illness, quarantines, social distancing practices, cancellation of events and travel, business and school shutdowns, reduction in commercial activity and financial transactions, supply chain interruptions, increased unemployment, and overall economic and financial market instability. Future effects, including additional actions taken by federal, state, and local governments to contain COVID-19 or treat its impact, are unknown. However, if these actions are sustained, it may adversely impact several industries within our geographic footprint and impair the ability of our customers to fulfill their contractual obligations to the Company. This could cause the Company to experience a material adverse effect on our business

operations, asset valuations, financial condition, and results of operations. Material adverse impacts may include all or a combination of valuation impairments on our intangible assets, investments, loans, loan servicing rights, deferred tax assets, or counter-party risk derivatives.

In the normal course of business, there are outstanding various contingent liabilities, such as claims and legal actions, which are not reflected in the consolidated financial statements. No material losses are anticipated as a result of these actions or claims.

We are a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The contract amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments.

Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank used the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The commitments are principally tied to variable rates. Loan commitments at December 31, 2020 and 2019 were as follows:


(dollars in thousands)	2020		2019
Commitments to extend credit	$	894,212	$	725,506
Financial guarantees – standby letters of credit	15,889		106,678

The Company establishes a mortgage repurchase liability to reflect management’s estimate of losses on loans for which the Company could have a repurchase obligation based on the volume of loans sold in 2020 and years prior, borrower default expectations, historical investor repurchase demand and appeals success rates, and estimated loss severity. Loans repurchased from investors are initially recorded at fair value, which becomes the Company’s new accounting basis. Any difference between the loan’s fair value and the outstanding principal amount is charged or credited to the mortgage repurchase liability, as appropriate. Subsequent to repurchase, such loans are carried in loans receivable. As a result of make-whole requests and loan repurchases, the Company incurred losses totaling $0.01 million for the year ended December 31, 2018. There were no losses as a result of make-whole requests and loan repurchases for the years ended December 31, 2020 and 2019. The liability for unresolved repurchase demands totaled $0.3 million at December 31, 2020 and 2019.

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION

During the third quarter of 2020, the Company sold its commercial FHA loan origination platform. During the year ended December 31, 2019, the commercial FHA origination and servicing segment’s net income was $1.6 million and its assets totaled $91.5 million at December 31, 2019. In conjunction with this sale, the Company re-evaluated its business segments. Previously, the Company chose to report data about this segment as we believed it to material to understanding our financial operations. However, due the sale of the commercial FHA loan origination platform, the data is not material to understanding our business and operations. The commercial FHA origination and servicing segment is aggregated with Banking for all periods presented.

Our business segments are defined as Banking, Wealth Management, and Other. The reportable business segments are consistent with the internal reporting and evaluation of the principle lines of business of the Company. The banking segment provides a wide range of financial products and services to consumers and businesses, including commercial, commercial real estate, mortgage and other consumer loan products; commercial equipment leasing; mortgage loan sales and servicing; letters of credit; various types of deposit products, including checking, savings and time deposit accounts; merchant services; and corporate treasury management services. The wealth management segment consists of trust and fiduciary services, brokerage and retirement planning services. The other segment includes the operating results of the parent company, our captive insurance business unit, and the elimination of intercompany transactions.

Selected business segment financial information as of and for the years ended December 31, 2020, 2019 and 2018 were as follows:


(dollars in thousands)	Banking		Wealth Management		Other		Total
December 31, 2020
Net interest income (expense)	$	211,120	$	—	$	(11,984)	$	199,136
Provision for credit losses on loans	44,361		—		—		44,361
Noninterest income	38,706		22,802		(259)		61,249
Noninterest expense	170,025		14,938		(953)		184,010
Income (loss) before income taxes (benefit)	35,440		7,864		(11,290)		32,014
Income taxes (benefit)	10,020		2,194		(2,737)		9,477
Net income (loss)	$	25,420	$	5,670	$	(8,553)	$	22,537
Total assets	$	6,985,011	$	27,313	$	(143,784)	$	6,868,540

December 31, 2019
Net interest income (expense)	$	201,534	$	—	$	(11,719)	$	189,815
Provision for credit losses on loans	16,985		—		—		16,985
Noninterest income	53,683		21,832		(233)		75,282
Noninterest expense	160,364		14,850		427		175,641
Income (loss) before income taxes (benefit)	77,868		6,982		(12,379)		72,471
Income taxes (benefit)	18,195		1,850		(3,358)		16,687
Net income (loss)	$	59,673	$	5,132	$	(9,021)	$	55,784
Total assets	$	6,086,947	$	26,015	$	(25,945)	$	6,087,017

December 31, 2018
Net interest income (expense)	$	190,461	$	298	$	(10,672)	$	180,087
Provision for credit losses on loans	9,430		—		—		9,430
Noninterest income	51,769		20,484		(462)		71,791
Noninterest expense	179,989		12,492		(838)		191,643
Income (loss) before income taxes (benefit)	52,811		8,290		(10,296)		50,805
Income taxes (benefit)	11,558		2,130		(2,304)		11,384
Net income (loss)	$	41,253	$	6,160	$	(7,992)	$	39,421
Total assets	$	5,657,179	$	23,899	$	(43,405)	$	5,637,673

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2020
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The Company utilizes the services of a company to act as a general manager for the construction of new facilities. A member of our board of directors is a substantial shareholder of this company and currently serves as its Chairman. During the years ended December 31, 2019 and 2018, the Company paid $0.6 million and $0.4 million, respectively, to this company for work on various projects. There were no payments to this company during the year ended December 31, 2020. A former member of our board of directors, who retired in 2020, has an ownership interest in a building the Company utilized for office space located in Effingham, Illinois. During the years ended December 31, 2020, 2019 and 2018, the Company paid rent on this space of $0.1 million, $0.1 million and $42,000, respectively.

REVENUE FROM CONTRACTS WITH CUSTOMERS

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERSThe Company’s revenue from contracts with customers in the scope of Topic 606 is recognized within noninterest income in the consolidated statements of income. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2020, 2019 and 2018.


(dollars in thousands)	2020		2019		2018
Noninterest income - in-scope of Topic 606
Wealth management revenue:
Trust management/administration fees	$	16,953	$	16,114	$	16,099
Investment advisory fees	2,009		2,171		2,041
Investment brokerage fees	1,465		1,165		1,065
Other	2,375		2,382		1,308
Service charges on deposit accounts:
Nonsufficient fund fees	5,589		7,721		7,672
Other	3,014		3,306		2,768
Interchange revenues	12,266		11,992		10,674
Other income:
Merchant services revenue	1,381		1,506		1,650
Other	3,161		3,475		2,935
Noninterest income - out-of-scope of Topic 606	13,036		25,450		25,579
Total noninterest income	$	61,249	$	75,282	$	71,791

Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and investment securities. In addition, certain noninterest income streams such as commercial FHA revenue, residential mortgage banking revenue and gain on sales of investment securities, net are also not in scope of the new guidance. Topic 606 is applicable to noninterest income streams such as wealth management revenue, service charges on deposit accounts, interchange revenue, gain on sales of other real estate owned, and certain other noninterest income streams. The recognition of revenue associated with these noninterest income streams did not change significantly from current practice upon adoption of Topic 606. The noninterest income streams considered in-scope by Topic 606 are discussed in below.

Wealth Management Revenue. Wealth management revenue is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company also earns investment advisory fees through its SEC registered investment advisory subsidiary. The Company’s performance obligation in both of these instances is generally satisfied over time, and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and contractually determined fee schedules. Payment is generally received a few days after month end through a direct charge to each customer’s account. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Fees generated from transactions executed by the Company’s third party broker dealer are remitted by them to the Company on a monthly basis for that month’s transactional activity.

Service Charges on Deposit Accounts. Service charges on deposit accounts consist of fees received under depository agreements with customers to provide access to deposited funds, serve as custodian of deposited funds, and when applicable, pay interest on deposits. These service charges primarily include non-sufficient fund fees and other account related service charges. Non-sufficient fund fees are earned when a depositor presents an item for payment in excess of available funds, and the Company, at its discretion, provides the necessary funds to complete the transaction. The Company generates other account related service charge revenue by providing depositors proper safeguard and remittance of funds as well as by delivering optional services for depositors, such as check imaging or treasury management, that are performed upon the depositor’s request. The Company’s performance obligation for the proper safeguard and remittance of funds, monthly account analysis and any other monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Payment for service charges on deposit accounts is typically received immediately or in the following month through a direct charge to a customer’s account.

Interchange Revenue. Interchange revenue includes debit / credit card income and ATM user fees. Card income is primarily comprised of interchange fees earned for standing ready to authorize and providing settlement on card transactions processed through the MasterCard interchange network. The levels and structure of interchange rates are set by MasterCard and can vary based on cardholder purchase volumes. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with completion of the Company’s performance obligation, the transaction processing services provided to the cardholder. Payment is typically received immediately or in the following month. ATM fees are primarily generated when a Company cardholder withdraws funds from a non-Company ATM or a non-Company cardholder withdraws funds from a Company ATM. The Company satisfies its performance obligation for each transaction at the point in time when the ATM withdrawal is processed.

Other Noninterest Income. The other noninterest income revenue streams within the scope of Topic 606 consist of merchant services revenue, safe deposit box rentals, wire transfer fees, paper statement fees, check printing commissions, other noninterest related fees, and gain on sales of other real estate owned. Revenue from the Company’s merchant services business consists principally of transaction and account management fees charged to merchants for the electronic processing of transactions. These fees are net of interchange fees paid to the credit card issuing bank, card company assessments, and revenue sharing amounts. Account management fees are considered earned at the time the merchant’s transactions are processed or other services are performed. Fees related to the other components of other noninterest income within the scope of Topic 606 are largely transactional based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized, at the point in time the customer uses the selected service to execute a transaction.

PARENT COMPANY ONLY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Disclosure [Abstract]

PARENT COMPANY ONLY FINANCIAL INFORMATION

The following tables present condensed financial information for Midland States Bancorp, Inc. at December 31, 2020 and 2019, and for the years ended December 31, 2020, 2019 and 2018:


Condensed Balance Sheets
(dollars in thousands)
	December 31,
	2020		2019
Assets:
Cash	$	58,904	$	52,673
Investment in common stock of subsidiaries	772,758		832,681

Other assets	11,317		4,934
Total assets	$	842,979	$	890,288
Liabilities:
Subordinated debt	$	169,795	$	176,653
Trust preferred debentures	48,814		48,288
Other borrowings	171		181


Other liabilities	2,808		3,255
Total liabilities	221,588		228,377
Shareholders’ equity	621,391		661,911
Total liabilities and shareholders’ equity	$	842,979	$	890,288


Condensed Statements of Income
(dollars in thousands)

	Years ended December 31,
	2020		2019		2018
Dividends from subsidiaries	$	89,890	$	43,900	$	17,000
Other income	—		—		6
Interest expense	(12,054)		(11,798)		(10,714)
Other expense	(1,309)		(2,753)		(1,180)
Income before income tax benefit and equity in undistributed (loss) income of subsidiaries	76,527		29,349		5,112
Income tax benefit	2,749		3,371		2,312
Income before equity in undistributed (loss) income of subsidiaries	79,276		32,720		7,424
Equity in undistributed (loss) income of subsidiaries	(56,739)		23,064		31,997
Net income	$	22,537	$	55,784	$	39,421


Condensed Statements of Cash Flows
(dollars in thousands)

	Years ended December 31,
	2020		2019		2018
Cash flows from operating activities:
Net income	$	22,537	$	55,784	$	39,421
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed loss (income) of subsidiaries	56,739		(23,064)		(31,997)
Share-based compensation expense	2,175		2,364		1,533
Change in other assets	(6,382)		(2,604)		3,273
Change in other liabilities	471		1,528		2,863
Net cash provided by operating activities	75,540		34,008		15,093
Cash flows from investing activities:
Net cash paid in acquisition	—		(1,021)		(32,890)

Net cash used in investing activities	—		(1,021)		(32,890)
Cash flows from financing activities:
Proceeds from issuance of subordinated debt, net of issuance costs	—		98,265		—
Payments made on subordinated debt	(7,443)		(19,543)		—

Subordinated debt prepayment fees	193		1,778		—
Payments made on other borrowings	—		(56,475)		(4,286)
Common stock repurchased	(39,615)		(4,019)		—
Redemption of Series G preferred stock	(10)		—		—
Redemption of Series H preferred stock	—		(2,636)		—
Cash dividends paid on common stock	(24,958)		(23,599)		(19,977)
Cash dividends paid on preferred stock	—		(191)		(330)
Proceeds from issuance of common stock under employee benefit plans	2,524		5,794		2,278
Net cash used in by financing activities	(69,309)		(626)		(22,315)
Net increase (decrease) in cash	6,231		32,361		(40,112)
Cash:
Beginning of period	52,673		20,312		60,424
End of period	$	58,904	$	52,673	$	20,312

QUARTERLY CONDENSED FINANCIAL INFORMATION (UNAUDITED)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

QUARTERLY CONDENSED FINANCIAL INFORMATION (UNAUDITED)

The following tables present the unaudited quarterly condensed financial information for the years ended December 31, 2020 and 2019:


	2020 Quarter Ended
(dollars in thousands, except per share data)	March 31		June 30		September 30		December 31
Interest income	$	61,314	$	60,548	$	60,314	$	62,712
Interest expense	14,663		11,559		10,334		9,196
Net interest income	46,651		48,989		49,980		53,516
Provision for credit losses	11,578		10,997		11,728		10,058
Net interest income after provision for credit losses	35,073		37,992		38,252		43,458
Noninterest income	8,598		19,396		18,919		14,336
Noninterest expense	41,666		41,395		53,901		47,048
Income before income taxes	2,005		15,993		3,270		10,746
Income taxes	456		3,424		3,184		2,413
Net income	$	1,549	$	12,569	$	86	$	8,333


Per common share data:
Basic earnings per common share	$	0.06	$	0.53	$	0.00	$	0.36
Diluted earnings per common share	0.06		0.53		0.00		0.36


	2019 Quarter Ended
(dollars in thousands, except per share data)	March 31		June 30		September 30		December 31
Interest income	$	59,432	$	60,636	$	65,006	$	64,444
Interest expense	13,831		14,559		15,556		15,757
Net interest income	45,601		46,077		49,450		48,687
Provision for credit losses	3,243		4,076		4,361		5,305
Net interest income after provision for credit losses	42,358		42,001		45,089		43,382
Noninterest income	17,075		19,587		19,606		19,014
Noninterest expense	41,097		40,194		48,025		46,325
Income before income taxes	18,336		21,394		16,670		16,071
Income taxes	4,354		5,039		4,015		3,279
Net income	13,982		16,355		12,655		12,792
Preferred stock dividends and premium amortization	34		34		(22)		—
Net income available to common shareholders	$	13,948	$	16,321	$	12,677	$	12,792
Per common share data:
Basic earnings per common share	$	0.58	$	0.67	$	0.51	$	0.52
Diluted earnings per common share	0.57		0.67		0.51		0.51

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTSOn February 10, 2021, the Company announced that it had entered into a definitive agreement to purchase substantially all of the trust assets of ATG Trust Company (“ATG Trust”), a trust company based in Chicago, Illinois with approximately $387 million in assets under management and annual revenue of approximately $3.5 million. The transaction is expected to increase the size of Midland’s Wealth Management group to more than $3.8 billion in assets under administration and more than 90 financial professionals. The transaction, which is subject to regulatory approval and other customary closing conditions, is expected to close in the second quarter of 2021 and is expected to result in minimal tangible book value dilution.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of presentation

Basis of Presentation

Principles of consolidation

Principles of Consolidation

Subsequent events

Subsequent Events

Management has evaluated subsequent events for recognition and disclosure through February 26, 2021, which is the date the financial statements were available to be issued.

Business combinations

Business Combinations

Cash and Cash Equivalents and Cash Flows

The following table summarizes supplemental cash flow information:


	Years Ended December 31,
(dollars in thousands)	2020		2019		2018
Supplemental disclosures of cash flow information:
Cash payments for:
Interest paid on deposits and borrowed funds	$	47,712	$	58,158	$	40,956
Income tax paid, net of refunds	2,977		479		580
Supplemental disclosures of noncash investing and financing activities:
Transfer of investment securities available for sale to equity securities	—		—		2,830
Transfer of loans to loans held for sale	542,060		419,215		—
Transfer of loans to other real estate owned	16,736		3,819		1,104
Transfer of premises and equipment, net to assets held for sale	11,344		4,350		—

Investment securities

Investment Securities

income. Also, when applicable, realized gains and losses are reported as a reclassification adjustment, net of tax, in other comprehensive income.

Equity Securities

Nonmarketable equity securities

Nonmarketable Equity Securities

Loans

Allowance for Credit Losses on Loans

The table below identifies the Company’s loan portfolio segments and classes.


Segment						Class
Commercial						Commercial
						Commercial Other
Commercial Real Estate						Commercial Real Estate Non-Owner Occupied
						Commercial Real Estate Owner Occupied
						Multi-Family
						Farmland
Construction and Land Development						Construction and Land Development
Residential Real Estate						Residential First Lien
						Other Residential
Consumer						Consumer
						Consumer Other
Lease Financing						Lease Financing

Loans held for sale

Loans Held for Sale

Mortgage repurchase reserve

Mortgage Repurchase Reserve

Premises and equipment

Premises and Equipment

Operating Lease Right of Use Assets and Liabilities

Other Real Estate Owned

Goodwill and intangible assets

Goodwill and Intangible Assets

Loan servicing rights

Loan Servicing Rights

Mortgage servicing rights held for sale

Mortgage Servicing Rights Held for Sale

Cash surrender value of life insurance policies

Cash Surrender Value of Life Insurance Policies

Derivative financial instruments

Derivative Financial Instruments

Allowance for Credit Losses on Unfunded Commitments

Income taxes

Income Taxes

Share-based compensation plans

Share-Based Compensation Plans

Comprehensive income

Comprehensive Income

Earnings per share

Earnings per Share

Accounting guidance adopted in 2019 and issued but not yet adopted

Accounting Guidance Adopted in 2020

The following table illustrates the impact of ASC 326.


	January 1, 2020
	As Reported Under ASC 326		Pre-ASC 326 Adoption		Impact of ASC 326 Adoption
(dollars in thousands)
Assets:
Loans
Commercial	$	1,056,986	$	1,055,185	$	1,801
Commercial real estate	1,528,119		1,526,504		1,615
Construction and land development	209,551		208,733		818
Residential real estate	570,882		568,291		2,591
Consumer	710,646		710,116		530
Lease financing	332,581		332,581		—
Allowance for credit losses on loans	(40,811)		(28,028)		(12,783)
Liabilities:
Allowance for credit losses on unfunded commitments	(1,507)		(1,244)		(263)

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on OBS credit exposures is adjusted as a provision for credit loss expense included in other expense on the consolidated income statement. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Expected utilization rates are compared to the current funded portion of the total commitment amount as a practical expedient for funded exposure at default.

Allowance for Credit Losses on Available-For-Sale Securities

Accounting Guidance Issued But Not Yet Adopted

Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Supplemental Cash Flows

The following table summarizes supplemental cash flow information:


	Years Ended December 31,
(dollars in thousands)	2020		2019		2018
Supplemental disclosures of cash flow information:
Cash payments for:
Interest paid on deposits and borrowed funds	$	47,712	$	58,158	$	40,956
Income tax paid, net of refunds	2,977		479		580
Supplemental disclosures of noncash investing and financing activities:
Transfer of investment securities available for sale to equity securities	—		—		2,830
Transfer of loans to loans held for sale	542,060		419,215		—
Transfer of loans to other real estate owned	16,736		3,819		1,104
Transfer of premises and equipment, net to assets held for sale	11,344		4,350		—

Summary of loans

The table below identifies the Company’s loan portfolio segments and classes.


Segment						Class
Commercial						Commercial
						Commercial Other
Commercial Real Estate						Commercial Real Estate Non-Owner Occupied
						Commercial Real Estate Owner Occupied
						Multi-Family
						Farmland
Construction and Land Development						Construction and Land Development
Residential Real Estate						Residential First Lien
						Other Residential
Consumer						Consumer
						Consumer Other
Lease Financing						Lease Financing

The following table presents total loans outstanding by portfolio class, at December 31, 2020 and 2019:


(dollars in thousands)	2020		2019
Commercial:
Commercial	$	937,382	$	628,056
Commercial other	748,193		427,129
Commercial real estate:
Commercial real estate non-owner occupied	871,451		825,874
Commercial real estate owner occupied	423,257		464,601
Multi-family	151,534		146,795
Farmland	79,731		89,234
Construction and land development	172,737		208,733
Total commercial loans	3,384,285		2,790,422
Residential real estate:
Residential first lien	358,329		456,107
Other residential	84,551		112,184
Consumer:
Consumer	80,642		100,732
Consumer other	785,460		609,384
Lease financing	410,064		332,581
Total loans, gross	$	5,103,331	$	4,401,410

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following table illustrates the impact of ASC 326.


	January 1, 2020
	As Reported Under ASC 326		Pre-ASC 326 Adoption		Impact of ASC 326 Adoption
(dollars in thousands)
Assets:
Loans
Commercial	$	1,056,986	$	1,055,185	$	1,801
Commercial real estate	1,528,119		1,526,504		1,615
Construction and land development	209,551		208,733		818
Residential real estate	570,882		568,291		2,591
Consumer	710,646		710,116		530
Lease financing	332,581		332,581		—
Allowance for credit losses on loans	(40,811)		(28,028)		(12,783)
Liabilities:
Allowance for credit losses on unfunded commitments	(1,507)		(1,244)		(263)

DISPOSITIONS AND ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

Schedule of allocation of consideration

A summary of the fair value of the assets acquired, liabilities assumed and resulting goodwill are included in the table below.


(dollars in thousands)	HomeStar		Alpine
Assets acquired:
Cash and cash equivalents	$	70,900	$	69,459
Investment securities available for sale	54,963		293,428
Equity securities	2,153		8,372
Loans	211,070		786,186
Loans held for sale	3,562		3,416
Premises and equipment	4,049		18,126
Operating lease right-of-use asset	5,177		—
Other real estate owned	1,092		53
Nonmarketable equity securities	454		2,038
Accrued interest receivable	1,185		4,414
Loan servicing rights	1,089		—
Mortgage servicing rights held for sale	1,701		3,068
Intangible assets	4,600		27,400
Cash surrender value of life insurance policies	—		22,578

Deferred tax assets, net	2,732		—
Other assets	1,541		4,770
Total assets acquired	366,268		1,243,308
Liabilities assumed:
Deposits	321,740		1,111,130
Short-term borrowings	—		—
FHLB advances and other borrowings	31,369		18,127
Trust preferred debentures	—		—
Accrued interest payable	115		539
Operating lease liabilities	6,232		—
Deferred tax liabilities, net	—		1,749
Other liabilities	3,575		4,500
Total liabilities assumed	363,031		1,136,045
Net assets acquired	3,237		107,263
Goodwill	8,123		65,964
Total consideration paid	$	11,360	$	173,227

Intangible assets:
Core deposit intangible	$	4,300	$	21,100
Customer relationship intangible	300		6,300
Total intangible assets	$	4,600	$	27,400
Estimated useful lives:
Core deposit intangible	12 years		13 years
Customer relationship intangible	6 years		13 years

INVESTMENT SECURITIES (Tables)

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Schedule of investment securities classified as available for sale

Investment securities available for sale at December 31, 2020 and 2019 were as follows:


	2020
(dollars in thousands)	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Allowance for credit losses		Fair value
Investment securities available for sale
U.S. government sponsored entities and U.S. agency securities	$	35,287	$	377	$	97	$	—	$	35,567
Mortgage-backed securities - agency	338,340		6,284		47		—		344,577
Mortgage-backed securities - non-agency	20,411		333		—		—		20,744
State and municipal securities	122,488		7,311		5		29		129,765
Corporate securities	145,187		2,205		997		337		146,058
Total investment securities available for sale	$	661,713	$	16,510	$	1,146	$	366	$	676,711


	2019
(dollars in thousands)	Amortized Cost		Gross unrealized gains		Gross unrealized losses		Allowance for credit losses	Fair value
Investment securities available for sale
U.S. government sponsored entities and U.S. agency securities	$	59,600	$	442	$	22	N/A	$	60,020
Mortgage-backed securities - agency	321,840		3,368		234		N/A	324,974
Mortgage-backed securities - non-agency	17,198		3		53		N/A	17,148
State and municipal securities	119,371		5,195		11		N/A	124,555
Corporate securities	121,159		2,131		554		N/A	122,736
Total investment securities available for sale	$	639,168	$	11,139	$	874	N/A	$	649,433

Schedule of debt securities


(dollars in thousands)	Amortized cost		Fair value
Investment securities available for sale
Within one year	$	30,924	$	31,329
After one year through five years	60,927		63,470
After five years through ten years	176,530		180,383
After ten years	34,581		36,208
Mortgage-backed securities	358,751		365,321
Total investment securities available for sale	$	661,713	$	676,711

Proceeds from the sale of investment securities available for sale and the resulting gross realized gains and losses for the years ended December 31, 2020, 2019 and 2018 are summarized below:


(dollars in thousands)	2020		2019		2018
Investment securities available for sale
Proceeds from sales	$	28,256	$	33,464	$	20,178
Gross realized gains on sales	1,721		786		542
Gross realized losses on sales	—		(190)		(25)

Schedule of major security type

The table below presents a rollforward by major security type for the year ended December 31, 2020 of the ACL on investment securities available for sale held at period end:


(dollars in thousands)	State and municipal securities		Corporate securities
Allowance for credit losses
Balance, beginning of period	$	—	$	—
Current-period provision for expected credit losses	29		337
Balance, end of period	$	29	$	337

Schedule of unrealized losses and fair values for investment securities


	2020
	Less than 12 Months				12 Months or more				Total
(dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
Investment securities available for sale
U.S. government sponsored entities and U.S. agency securities	$	9,903	$	97	$	—	$	—	$	9,903	$	97
Mortgage-backed securities - agency	26,172		47		—		—		26,172		47
Mortgage-backed securities - non-agency	—		—		—		—		—		—
State and municipal securities	—		—		—		—		—		—
Corporate securities	20,010		522		—		—		20,010		522
Total investment securities available for sale	$	56,085	$	666	$	—	$	—	$	56,085	$	666


	2019
	Less than 12 Months				12 Months or more				Total
(dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
Investment securities available for sale
U.S. government sponsored entities and U.S. agency securities	$	7,200	$	22	$	—	$	—	$	7,200	$	22
Mortgage-backed securities - agency	75,336		170		7,170		64		82,506		234
Mortgage-backed securities - non-agency	11,059		53		—		—		11,059		53
State and municipal securities	1,813		11		—		—		1,813		11
Corporate securities	20,269		481		3,915		73		24,184		554
Total investment securities available for sale	$	115,677	$	737	$	11,085	$	137	$	126,762	$	874

Schedule of Proceeds from the sale of available-for-sale investment securities and equity securities, the resulting gross realized gains (losses) and net unrealized gains (losses)


(dollars in thousands)	2020		2019		2018
Equity securities
Proceeds from sales	$	—	$	105	$	7,733
Gross realized gains on sales	—		78		—
Gross realized losses on sales	—		—		(53)
Net unrealized gains (losses)	577		93		(10)

LOANS (Tables)

12 Months Ended

Dec. 31, 2020

Receivables [Abstract]

Summary of loans

The table below identifies the Company’s loan portfolio segments and classes.


Segment						Class
Commercial						Commercial
						Commercial Other
Commercial Real Estate						Commercial Real Estate Non-Owner Occupied
						Commercial Real Estate Owner Occupied
						Multi-Family
						Farmland
Construction and Land Development						Construction and Land Development
Residential Real Estate						Residential First Lien
						Other Residential
Consumer						Consumer
						Consumer Other
Lease Financing						Lease Financing

The following table presents total loans outstanding by portfolio class, at December 31, 2020 and 2019:


(dollars in thousands)	2020		2019
Commercial:
Commercial	$	937,382	$	628,056
Commercial other	748,193		427,129
Commercial real estate:
Commercial real estate non-owner occupied	871,451		825,874
Commercial real estate owner occupied	423,257		464,601
Multi-family	151,534		146,795
Farmland	79,731		89,234
Construction and land development	172,737		208,733
Total commercial loans	3,384,285		2,790,422
Residential real estate:
Residential first lien	358,329		456,107
Other residential	84,551		112,184
Consumer:
Consumer	80,642		100,732
Consumer other	785,460		609,384
Lease financing	410,064		332,581
Total loans, gross	$	5,103,331	$	4,401,410

Schedule of Changes in Related Parties Receivables

The new loans, other additions, repayments and other reductions for the years ended December 31, 2020 and 2019, are summarized as follows:


(dollars in thousands)	2020		2019
Beginning balance	$	22,989	$	26,536
New loans and other additions	2,563		3,400
Repayments and other reductions	(5,859)		(6,947)
Ending balance	$	19,693	$	22,989

Summary of changes in allowance for loan losses, by loan portfolio

he following table presents, by loan portfolio, a summary of changes in the ACL on loans for the years ended December 31, 2020, 2019 and 2018:


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
(dollars in thousands)	Commercial		Estate		Development		Estate		Consumer		Financing		Total
Changes in allowance for credit losses on loans in 2020:
Balance, beginning of period	$	10,031	$	10,272	$	290	$	2,499	$	2,642	$	2,294	$	28,028
Impact of adopting ASC 326	2,327		4,104		724		1,211		(594)		774		8,546
Impact of adopting ASC 326 - PCD loans	1,045		1,311		809		1,015		57		—		4,237
Provision for credit losses on loans	11,890		23,091		(121)		(458)		1,212		7,535		43,149
Charge-offs	(5,589)		(13,637)		(376)		(522)		(1,624)		(3,706)		(25,454)
Recoveries	147		324		107		184		645		530		1,937
Balance, end of period	$	19,851	$	25,465	$	1,433	$	3,929	$	2,338	$	7,427	$	60,443

Changes in allowance for credit losses on loans in 2019:
Balance, beginning of period	$	9,524	$	4,723	$	372	$	2,041	$	2,154	$	2,089	$	20,903
Provision for credit losses on loans	3,852		7,939		(53)		1,392		1,767		2,088		16,985
Charge-offs	(3,412)		(3,339)		(44)		(1,076)		(1,946)		(2,251)		(12,068)
Recoveries	67		949		15		142		667		368		2,208
Balance, end of period	$	10,031	$	10,272	$	290	$	2,499	$	2,642	$	2,294	$	28,028

Changes in allowance for credit losses on loans in 2018:
Balance, beginning of period	$	5,256	$	5,044	$	518	$	2,750	$	1,344	$	1,519	$	16,431
Provision for credit losses on loans	4,941		(207)		(227)		(517)		2,156		3,284		9,430
Charge-offs	(1,236)		(492)		—		(361)		(1,876)		(3,024)		(6,989)
Recoveries	563		378		81		169		530		310		2,031
Balance, end of period	$	9,524	$	4,723	$	372	$	2,041	$	2,154	$	2,089	$	20,903


	Commercial Loan Portfolio						Other Loan Portfolio
(dollars in thousands)	Commercial		Commercial Real Estate		Construction and Land Development		Residential Real Estate		Consumer		Lease Financing		Total
Allowance for credit losses on loans:
Loans individually evaluated for impairment	$	3,563	$	5,968	—		$	290	—		$	156	$	9,977
Loans collectively evaluated for impairment	69		100		14		444		39		122		788
Non-impaired loans collectively evaluated for impairment	6,380		3,643		272		1,269		2,500		2,016		16,080
Loans acquired with deteriorated credit quality (1)	19		561		4		496		103		—		1,183
Total allowance for credit losses on loans	$	10,031	$	10,272	$	290	$	2,499	$	2,642	$	2,294	$	28,028
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment	$	5,767	$	22,698	$	1,245	$	5,329	—		$	697	$	35,736
Impaired loans collectively evaluated for impairment	511		764		104		3,695		376		896		6,346
Non-impaired loans collectively evaluated for impairment	1,045,829		1,482,935		201,707		546,630		708,528		330,988		4,316,617
Loans acquired with deteriorated credit quality (1)	3,078		20,107		5,677		12,637		1,212		—		42,711
Total recorded investment (loan balance)	$	1,055,185	$	1,526,504	$	208,733	$	568,291	$	710,116	$	332,581	$	4,401,410

Schedule of transitioning risk states for each asset pool within the expected credit loss model

The Company has defined five transitioning risk states for each asset pool within the expected credit loss model. The below table illustrates the transition matrix:


Risk State	Commercial Loans Risk Rating	Consumer Loans and Equipment Finance Loans and Leases Days Past Due
1	0-5	0-14
2	6	15-29
3	7	30-59
4	8	60-89
Default	9+ and nonaccrual	90+ and nonaccrual

Schedule of Amortized Cost Basis of Individually Evaluated Loans on Nonaccrual Status

The following table presents the amortized cost basis of individually evaluated loans on nonaccrual status as of December 31, 2020 and 2019:


	2020						2019
	Nonaccrual		Nonaccrual				Nonaccrual		Nonaccrual
	with		with no		Total		with		with no		Total
(dollars in thousands)	Allowance		Allowance		Nonaccrual		Allowance		Allowance		Nonaccrual
Commercial:
Commercial	$	3,498	$	—	$	3,498	$	1,373	$	119	$	1,492
Commercial Other	2,634		—		2,634		2,832		1,519		4,351
Commercial real estate:
Commercial real estate non-owner occupied	5,509		3,823		9,332		6,343		4,572		10,915
Commercial real estate owner occupied	3,598		3,227		6,825		1,748		2,648		4,396
Multi-family	7,921		2,325		10,246		4,801		1,430		6,231
Farmland	—		—		—		50		150		200
Construction and land development	2,131		693		2,824		59		1,245		1,304
Total commercial loans	25,291		10,068		35,359		17,206		11,683		28,889
Residential real estate:
Residential first lien	8,534		1,071		9,605		3,724		2,416		6,140
Other residential	2,437		—		2,437		744		912		1,656
Consumer:
Consumer	262		—		262		334		7		341
Consumer Other	—		—		—		—		—		—
Lease financing	1,965		—		1,965		1,259		116		1,375
Total loans	$	38,489	$	11,139	$	49,628	$	23,267	$	15,134	$	38,401

Schedule of collateral dependent loans

The table below presents the value of individually evaluated, collateral dependent loans by loan class, for borrowers experiencing financial difficulty, as of December 31, 2020:


(dollars in thousands)	2020
Commercial
Commercial Other	$	—
Commercial Real Estate
Non-Owner Occupied	8,159
Owner Occupied	—
Multi-Family	10,121
Construction and Land Development	693
Residential Real Estate
Residential First Lien	—
Total Collateral Dependent Loans	$	18,973

All loans included in the above table are secured by real estate.

Summary of aging status of recorded investments in loans by portfolio (excluding PCI loans)

The aging status of the recorded investment in loans by portfolio as of December 31, 2020 was as follows:


	Accruing Loans
(dollars in thousands)	30-59 days past due		60-89 days past due		Past due 90 days or more		Total past due loans		Nonaccrual loans		Current loans		Total loans
Commercial:
Commercial	$	389	$	27	$	—	$	416	$	3,498	$	933,468	$	937,382
Commercial other	4,007		3,901		896		8,804		2,634		736,755		748,193
Commercial real estate:
Commercial real estate non-owner occupied	6,684		—		—		6,684		9,332		855,435		871,451
Commercial real estate owner occupied	2,145		—		—		2,145		6,825		414,287		423,257
Multi-family	61		—		—		61		10,246		141,227		151,534
Farmland	—		—		—		—		—		79,731		79,731
Construction and land development	863		—		—		863		2,824		169,050		172,737
Total commercial loans	14,149		3,928		896		18,973		35,359		3,329,953		3,384,285
Residential real estate:
Residential first lien	127		207		—		334		9,605		348,390		358,329
Other residential	240		135		—		375		2,437		81,739		84,551
Consumer:
Consumer	325		57		—		382		262		79,998		80,642
Consumer other	4,334		2,874		—		7,208		—		778,252		785,460
Lease financing	4,539		545		645		5,729		1,965		402,370		410,064
Total loans	$	23,714	$	7,746	$	1,541	$	33,001	$	49,628	$	5,020,702	$	5,103,331

The aging status of the recorded investment in loans by portfolio, excluding PCI, as of December 31, 2019 was as follows:


	Accruing Loans
(dollars in thousands)	30-59 days past due		60-89 days past due		Past due 90 days or more		Total past due loans		Nonaccrual loans		Current loans		Total loans
Commercial	$	5,910	$	3,086	—		$	8,996	$	5,843	$	1,037,268	$	1,052,107
Commercial real estate	2,895		399		—		3,294		21,742		1,481,361		1,506,397
Construction and land development	1,539		72		—		1,611		1,304		200,141		203,056
Residential real estate	588		1,561		145		2,294		7,796		545,564		555,654
Consumer	6,701		4,154		—		10,855		341		697,708		708,904
Lease financing	1,783		1,188		218		3,189		1,375		328,017		332,581
Total loans (excluding PCI)	$	19,416	$	10,460	$	363	$	30,239	$	38,401	$	4,290,059	$	4,358,699

Summary of TDRs loans


	2020						2019(3)
(dollars in thousands)	Accruing(1)		Non-accrual(2)		Total		Accruing(1)		Non-accrual(2)		Total
Commercial	$	967	$	558	$	1,525	$	435	$	369	$	804
Commercial real estate	866		4,314		5,180		1,720		9,834		11,554
Construction and land development	39		909		948		45		167		212
Residential real estate	988		3,705		4,693		1,083		1,993		3,076
Consumer	41		—		41		35		—		35
Lease financing	—		38		38		—		55		55
Total loans	$	2,901	$	9,524	$	12,425	$	3,318	$	12,418	$	15,736

(1)These loans are still accruing interest.

(2)These loans are included in non-accrual loans in the preceding tables.

(3)TDRs as of December 31, 2019 exclude PCI loans.


	Commercial Loan Portfolio						Other Loan Portfolio
(dollars in thousands)	Commercial		Commercial real estate		Construction and land development		Residential real estate		Consumer		Lease financing		Total
For the year ended December 31, 2020:
Troubled debt restructurings:
Number of loans	4		4		3		22		4		—		37
Pre-modification outstanding balance	$	989	$	797	$	1,010	$	2,334	$	34	$	—	$	5,164
Post-modification outstanding balance	967		383		900		2,172		33		—		4,455





For the year ended December 31, 2019:
Troubled debt restructurings:
Number of loans	1		3		2		25		5		1		37
Pre-modification outstanding balance	$	249	$	1,924	$	221	$	1,422	$	26	$	55	$	3,897
Post-modification outstanding balance	249		1,322		167		1,322		25		55		3,140





For the year ended December 31, 2018:
Troubled debt restructurings:
Number of loans	2		2		—		7		25		—		36
Pre-modification outstanding balance	$	423	$	1,571	$	—	$	708	$	130	$	—	$	2,832
Post-modification outstanding balance	408		1,565		—		696		130		—		2,799

Summary of recorded investment (excluding PCI loans) by risk category

The following tables present the recorded investment of the commercial loan portfolio by risk category as of December 31, 2020 and 2019:


			2020
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2020		2019		2018		2017		2016		Prior		Revolving loans		Total
Commercial	Commercial	Acceptable credit quality	$	117,792	$	107,915	$	35,649	$	34,753	$	22,025	$	51,593	$	517,929	$	887,656
		Special mention	244		201		4,897		3,729		4,968		881		7,721		22,641
		Substandard	544		1,953		1,259		104		248		4,861		14,618		23,587
		Substandard – nonaccrual	2		31		640		936		154		458		1,277		3,498
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	118,582		110,100		42,445		39,522		27,395		57,793		541,545		937,382

	Commercial other	Acceptable credit quality	416,306		157,232		52,843		739		303		677		88,250		716,350
		Special mention	1,871		10,691		3,810		31		79		—		5,315		21,797
		Substandard	255		260		1,078		3		12		—		5,351		6,959
		Substandard – nonaccrual	—		1,984		641		—		4		—		5		2,634
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	453		—		—		—		—		—		—		453
		Subtotal	418,885		170,167		58,372		773		398		677		98,921		748,193

Commercial real estate	Non-owner occupied	Acceptable credit quality	168,788		109,602		63,435		91,763		97,293		156,958		5,248		693,087
		Special mention	3,011		9,107		3,231		483		14,294		17,816		4,279		52,221
		Substandard	7,469		16,306		13,813		23,169		16,897		38,907		250		116,811
		Substandard – nonaccrual	125		325		101		—		3,438		5,343		—		9,332
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	179,393		135,340		80,580		115,415		131,922		219,024		9,777		871,451

	Owner occupied	Acceptable credit quality	68,688		55,502		38,471		55,526		63,105		91,986		4,066		377,344
		Special mention	1,882		3,578		225		4,142		1,038		7,289		—		18,154
		Substandard	4,078		468		1,023		760		5,861		8,430		314		20,934
		Substandard – nonaccrual	373		200		170		241		—		5,441		400		6,825
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	75,021		59,748		39,889		60,669		70,004		113,146		4,780		423,257

	Multi-family	Acceptable credit quality	12,865		6,921		19,204		32,934		10,674		24,375		1,281		108,254
		Special mention	465		—		8,442		—		—		1,323		—		10,230
		Substandard	—		10,945		1,518		—		10,266		75		—		22,804
		Substandard – nonaccrual	—		—		—		—		7,804		2,442		—		10,246
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	13,330		17,866		29,164		32,934		28,744		28,215		1,281		151,534

	Farmland	Acceptable credit quality	18,556		6,846		3,873		8,803		6,013		23,921		1,814		69,826
		Special mention	274		1,387		180		38		298		784		—		2,961
		Substandard	2,241		307		802		127		877		2,435		155		6,944
		Substandard – nonaccrual	—		—		—		—		—		—		—		—
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	21,071		8,540		4,855		8,968		7,188		27,140		1,969		79,731

Construction and land development		Acceptable credit quality	36,488		83,440		11,625		3,554		2,506		4,263		15,941		157,817
		Special mention	—		—		454		—		—		—		—		454
		Substandard	1,386		8,875		—		—		—		914		—		11,175
		Substandard – nonaccrual	—		242		—		—		152		2,430		—		2,824
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	467		—		—		—		—		—		—		467
		Subtotal	38,341		92,557		12,079		3,554		2,658		7,607		15,941		172,737

Total		Acceptable credit quality	839,483		527,458		225,100		228,072		201,919		353,773		634,529		3,010,334
		Special mention	7,747		24,964		21,239		8,423		20,677		28,093		17,315		128,458
		Substandard	15,973		39,114		19,493		24,163		34,161		55,622		20,688		209,214
		Substandard – nonaccrual	500		2,782		1,552		1,177		11,552		16,114		1,682		35,359
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	920		—		—		—		—		—		—		920
Total Commercial loans			$	864,623	$	594,318	$	267,384	$	261,835	$	268,309	$	453,602	$	674,214	$	3,384,285


	2019
(dollars in thousands)	Commercial		Commercial real estate		Construction and land development		Total
Acceptable credit quality	$	748,296	$	1,536,127	$	218,798	$	2,503,221
Special mention	35,103		15,306		3,448		53,857
Substandard	14,139		46,976		—		61,115
Substandard – nonaccrual	8,489		21,494		1,171		31,154
Doubtful	—		—		—		—
Not graded	—		—		481		481
Total (excluding PCI)	$	806,027	$	1,619,903	$	223,898	$	2,649,828


			2020
			Term Loans Amortized Cost Basis by Origination Year
			2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
Residential real estate	Residential first lien	Performing	$	32,322	$	27,071	$	49,039	$	99,658	$	81,525	$	58,107	$	405	$	348,127
		Nonperforming	—		196		1,074		933		1,030		6,969		—		10,202
		Subtotal	32,322		27,267		50,113		100,591		82,555		65,076		405		358,329

	Other residential	Performing	975		2,430		3,281		2,091		1,348		1,825		69,773		81,723
		Nonperforming	—		13		21		146		7		165		2,476		2,828
		Subtotal	975		2,443		3,302		2,237		1,355		1,990		72,249		84,551

Consumer	Consumer	Performing	28,449		14,084		16,692		8,737		5,067		3,834		3,476		80,339
		Nonperforming	31		6		57		81		64		63		1		303
		Subtotal	28,480		14,090		16,749		8,818		5,131		3,897		3,477		80,642

	Consumer other	Performing	614,764		117,054		21,394		6,514		6,096		2,480		17,158		785,460
		Nonperforming	—		—		—		—		—		—		—		—
		Subtotal	614,764		117,054		21,394		6,514		6,096		2,480		17,158		785,460

Leases financing		Performing	177,068		125,611		70,059		21,047		12,410		1,259		—		407,454
		Nonperforming	468		192		1,080		600		207		63		—		2,610
		Subtotal	177,536		125,803		71,139		21,647		12,617		1,322		—		410,064

Total
		Performing	853,578		286,250		160,465		138,047		106,446		67,505		90,812		1,703,103
		Nonperforming	499		407		2,232		1,760		1,308		7,260		2,477		15,943
Total other loans			$	854,077	$	286,657	$	162,697	$	139,807	$	107,754	$	74,765	$	93,289	$	1,719,046


	2019
(dollars in thousands)	Residential real estate		Consumer		Lease financing		Total
Performing	$	546,630	$	708,528	$	330,988	$	1,586,146
Impaired	9,024		376		1,593		10,993
Total (excluding PCI)	$	555,654	$	708,904	$	332,581	$	1,597,139

PREMISES AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Summary of premises and equipment

A summary of premises and equipment at December 31, 2020 and 2019 is as follows:


(dollars in thousands)	2020		2019
Land	$	16,158	$	19,123
Buildings and improvements	65,932		77,296
Furniture and equipment	33,202		31,846
Total	115,292		128,265
Accumulated depreciation	(41,168)		(37,210)
Premises and equipment, net	$	74,124	$	91,055

LEASES (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Summary of information related to operating leases

Information related to operating leases for the years ended December 31, 2020 and 2019 was as follows:


(dollars in thousands)	2020			2019
Operating lease cost	$	2,943		$	2,752
Operating cash flows related to leases	3,280			3,241
Right-of-use assets obtained in exchange for lease obligations	1,616			18,482
Right-of-use assets derecognized due to terminations or impairment	(4,467)			—
Weighted average remaining lease term	8.10 years			8.00 years
Weighted average discount rate	2.90		%	2.98		%

Summary of projected minimum rental payments

The projected minimum rental payments under the terms of the leases as of December 31, 2020 are as follows:


(dollars in thousands)	Amount
Year ending December 31,
2021	$	2,200
2022	2,184
2023	1,899
2024	1,546
2025	762
Thereafter	4,924
Total future minimum lease payments	13,515
Less imputed interest	(1,557)
Total operating lease liabilities	$	11,958

LOAN SERVICING RIGHTS (Tables)

12 Months Ended

Dec. 31, 2020

Transfers and Servicing [Abstract]

Schedule of other mortgage notes serviced and changes in our mortgage servicing rights

Changes in our commercial FHA loan servicing rights for the years ended December 31, 2020, 2019 and 2018 are summarized as follows:


(dollars in thousands)	2020		2019		2018
Loan servicing rights:
Balance, beginning of period	$	57,637	$	56,252	$	55,714
Originated servicing	1,128		4,124		3,174
Amortization	(3,162)		(2,739)		(2,636)
Permanent impairment	(17,281)		—		—
Balance, end of period	38,322		57,637		56,252
Valuation allowances:
Balance, beginning of period	4,944		2,805		3,254
Additions	12,337		2,698		931
Reductions	(17,281)		(559)		(1,380)
Balance, end of period	—		4,944		2,805
Loan servicing rights, net	$	38,322	$	52,693	$	53,447
Fair value:
At beginning of period	$	52,693	$	53,447	$	52,460
At end of period	$	38,322	$	52,693	$	53,447

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets

The carrying amount of goodwill by segment at December 31, 2020 and 2019 is summarized as follows:


(dollars in thousands)	2020		2019
Banking	$	157,158	$	156,120
Commercial FHA origination and servicing	—		10,892
Wealth management	4,746		4,746
Total goodwill	$	161,904	$	171,758

The Company's intangible assets as of December 31, 2020 and 2019 are summarized as follows:


	2020						2019
(dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Total		Gross Carrying Amount		Accumulated Amortization		Total
Core deposit intangibles	$	57,012	$	(36,005)	$	21,007	$	57,012	$	(30,674)	$	26,338
Customer relationship intangibles	14,071		(6,696)		7,375		14,071		(5,523)		8,548
Total intangible assets	$	71,083	$	(42,701)	$	28,382	$	71,083	$	(36,197)	$	34,886

Schedule of estimated future amortization expense of intangible assets

Estimated amortization expense for future years is as follows:


(dollars in thousands)	Amount
Year ending December 31,
2021	$	5,675
2022	4,900
2023	4,125
2024	3,409
2025	2,659
Thereafter	7,614
Total	$	28,382

DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative instruments, fair value and notional amounts


	Notional Amount				Fair Value Gain
(dollars in thousands)	2020		2019		2020		2019
Derivative Instruments (included in other assets):
Interest rate lock commitments	$	136,227	$	222,654	$	2,217	$	3,350
Forward commitments to sell mortgage-backed securities	218,126		221,052		—		—
Total	$	354,353	$	443,706	$	2,217	$	3,350


	Notional Amounts				Fair Value Loss
(dollars in thousands)	2020		2019		2020		2019
Derivative Instruments (included in other liabilities):
Forward commitments to sell mortgage-backed securities	$	33,240	$	—	$	309	$	—

DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2020

Deposits [Abstract]

Schedule summarizes the classification of deposits

The following table summarizes the classification of deposits at December 31, 2020 and 2019:


(dollars in thousands)	2020		2019
Noninterest-bearing demand	$	1,469,579	$	1,019,472
Interest-bearing:
Checking	1,568,888		1,342,788
Money market	785,871		787,662
Savings	597,966		522,456
Time	678,712		871,876
Total deposits	$	5,101,016	$	4,544,254

Schedule of maturities of time deposits

As of December 31, 2020, the scheduled maturities of time deposits were as follows:


(dollars in thousands)	Amount
Year Ending December 31,
2021	$	540,932
2022	84,818
2023	31,779
2024	9,420
2025	11,711
Thereafter	52
Total	$	678,712

SHORT-TERM BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of short term borrowings

The following table presents the distribution of short-term borrowings and related weighted average interest rates for each of the years ended December 31, 2020 and 2019:


	Repurchase Agreements
(dollars in thousands)	2020			2019
Outstanding at period-end	$	68,957		$	82,029
Average amount outstanding	60,306			121,168
Maximum amount outstanding at any month end	77,136			138,907
Weighted average interest rate:
During period	0.30		%	0.69		%
End of period	0.12		%	0.67		%

FHLB ADVANCES AND OTHER BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2020

FHLB ADVANCES AND OTHER BORROWINGS

Schedule of Federal Home Loan Bank (FHLB) advances

The following table summarizes our FHLB advances and other borrowings at December 31, 2020 and 2019:


(dollars in thousands)	2020		2019
Midland States Bancorp, Inc.

Series G redeemable preferred stock – 171 and 181 shares at December 31, 2020 and 2019, respectively at $1,000 per share	$	171	$	181
Midland States Bank
FHLB advances – fixed rate, fixed term at rates averaging 0.24% and 2.56% at December 31, 2020 and 2019, respectively – maturing through May 2021	304,000		28,130
FHLB advances – putable fixed rate at rates averaging 2.01% and 2.34% at December 31, 2020 and 2019, respectively – maturing through February 2030 with call provisions through August 2021	475,000		465,000
Total FHLB advances and other borrowings	$	779,171	$	493,311

Schedule of payments over the next five years

Contractual payments over the next five years for FHLB advances and other borrowings were as follows:


(dollars in thousands)	Amount
Year Ending December 31,
2021	$	304,000
2022	—
2023	225,000
2024	70,000
2025	80,000
Thereafter	100,171
Total	$	779,171

SUBORDINATED DEBT (Tables)

12 Months Ended

Dec. 31, 2020

Subordinated Borrowings [Abstract]

Schedule of summary of company's subordinated debt

The following table summarizes the Company’s subordinated debt at December 31, 2020 and 2019:


(dollars in thousands)	2020		2019
Subordinated debt issued June 2015 – fixed interest rate of 6.00% through June 2020 and a variable interest rate equivalent to three month LIBOR plus 4.35% thereafter, which was 4.59% at December 31, 2020, $31,075 and $38,325 at December 31, 2020 and 2019, respectively – maturing June 18, 2025	$	31,075	$	38,273
Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $550 – maturing June 18, 2025	545		544
Subordinated debt issued October 2017 - fixed interest rate of 6.25% through October 2022 and a variable interest rate equivalent to three month LIBOR plus 4.23% thereafter, $40,000 – maturing October 15, 2027	39,561		39,496
Subordinated debt issued September 2019 – fixed interest rate of 5.00% through September 2024 and a variable interest rate equivalent to three month SOFR plus 3.61% thereafter, $72,750 – maturing September 30, 2029	71,785		71,549
Subordinated debt issued September 2019 – fixed interest rate of 5.50% through September 2029 and a variable interest rate equivalent to three month SOFR plus 4.05% thereafter, $27,250 – maturing September 30, 2034	26,829		26,791
Total subordinated debt	$	169,795	$	176,653

TRUST PREFERRED DEBENTURES (Tables)

12 Months Ended

Dec. 31, 2020

TRUST PREFERRED DEBENTURES

Summary of trust preferred debentures

The following table summarizes the Company’s trust preferred debentures at December 31, 2020 and 2019:


(dollars in thousands)	2020		2019
Midland States Preferred Securities Trust – variable interest rate equal to LIBOR plus 2.75%, which was 2.96% and 4.68% at December 31, 2020 and 2019, respectively – $10,310 maturing April 23, 2034	$	10,276	$	10,274
Grant Park Statutory Trust I – variable interest rate equal to LIBOR plus 2.85%, which was 3.06% and 4.79%, at December 31, 2020 and 2019, respectively – $3,093 maturing January 23, 2034	2,314		2,263
Love Savings/Heartland Capital Trust III – variable interest rate equal to LIBOR plus 1.75%, which was 1.97% and 3.64% at December 31, 2020 and 2019, respectively – $20,619 maturing December 31, 2036	14,442		14,251
Love Savings/Heartland Capital Trust IV – variable interest rate equal to LIBOR plus 1.47%, which was 1.70% and 3.36% at December 31, 2020 and 2018, respectively – $20,619 maturing September 6, 2037	13,621		13,428
Centrue Statutory Trust II - variable interest rate equal to LIBOR plus 2.65%, which was 2.88% and 4.55% at December 31, 2020 and 2018, respectively - $10,310 maturing June 17, 2034	8,161		8,072
Total trust preferred debentures	$	48,814	$	48,288

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of components of income taxes

The components of income taxes for the years ended December 31, 2020, 2019 and 2018 were as follows:


(dollars in thousands)	2020		2019		2018
Federal:
Current	$	10,924	$	2,318	$	55
Deferred	(3,852)		8,287		6,748
State:
Current	1,271		1,761		807
Deferred	1,134		4,321		3,774
Total income tax expense	$	9,477	$	16,687	$	11,384

Schedule of reconciliation of income tax expense

The Company’s income tax expense differed from the statutory federal rate of 21% for the years ended December 31, 2020, 2019 and 2018 as follows:


(dollars in thousands)	2020		2019		2018
Expected income taxes	$	6,723	$	15,218	$	10,665
Less income tax effect of:
Tax-exempt income, net	(2,398)		(2,568)		(2,622)

State tax, net of federal benefit	1,900		4,805		4,028

Equity-based compensation benefit	239		(484)		(62)
Non-deductible transaction costs	—		110		71
Disposition of nondeductible goodwill	2,287		—		—
Valuation allowance	10		62		(409)

Other	716		(456)		(287)
Actual income tax expense	$	9,477	$	16,687	$	11,384

Schedule of deferred tax assets, net

Deferred tax assets, net in the accompanying consolidated balance sheets at December 31, 2020 and 2019 include the following amounts of deferred tax assets and liabilities:


(dollars in thousands)	2020		2019
Assets:
Allowance for credit losses on loans	$	16,622	$	7,708
Deferred compensation	2,152		2,332
Loans	2,772		5,386

Tax credits	1,047		1,049



Net operating losses	11,231		15,510



Fair value adjustment on investments	1,067		1,217
Premises and equipment	433		—

Operating lease liabilities	3,289		4,227
Other, net	3,861		2,961
Deferred tax assets	42,474		40,390
Valuation allowance	(71)		(62)
Deferred tax assets, net of valuation allowance	42,403		40,328
Liabilities:
Premises and equipment	—		1,735
Unrealized gain on securities	4,169		2,846
Mortgage servicing rights	8,315		11,436
Fair value adjustment on trust preferred debentures	4,417		4,560

Deferred loan costs, net of fees	3,632		3,539
Intangible assets	6,921		8,380


Software development costs	1,522		1,638
Leased equipment	17,910		12,313
Operating lease right-of-use assets	2,524		3,912
Other, net	1,315		1,247
Deferred tax liabilities	50,725		51,606
Deferred tax liabilities, net	$	(8,322)	$	(11,278)

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Summary of the activity for restricted stock awards

A summary of the activity for restricted stock awards and restricted stock unit awards for the year follows:


	Number outstanding	Weighted average grant due fair value
Nonvested, beginning of year	254,057	$	28.24
Granted during the year	94,998	14.85
Vested during the year	74,611	28.42
Forfeited during the year	33,756	28.75
Nonvested, end of year	240,688	22.83

Summary of our stock option plan and changes made

The summary of our stock option activity during the years ended December 31, 2020 and 2019 is as follows:


	2020				2019
	Shares	Weighted average exercise price		Weighted average remaining contractual life	Shares	Weighted average exercise price		Weighted average remaining contractual life
Option outstanding, beginning of year	623,122	$	20.83		1,006,144	$	19.48
Options granted	—	—			—	—
Options exercised	(39,500)	17.90			(360,776)	16.46
Options forfeited	(3,268)	28.89			(16,362)	30.45
Options expired	(112,865)	19.26			(5,884)	31.30
Options outstanding, end of year	467,489	21.40		4.1 years	623,122	20.83		4.8 years
Options exercisable	463,590	21.31		4.1 years	586,081	20.40		4.6 years
Options vested and expected to vest	467,060	21.39		4.1 years	619,032	20.79		4.8 years

Summary of information about the Company's nonvested stock option activity

The following table summarizes information about the Company’s nonvested stock option activity for 2020:


	Shares	Weighted average grant date fair value
Nonvested at December 31, 2019	37,041	$	3.26
Granted	—	—
Vested	(29,874)	3.09
Forfeited	(3,268)	3.50
Nonvested at December 31, 2020	3,899	4.33

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Schedule of basic and diluted earnings per common share

Presented below are the calculations for basic and diluted earnings per common share for the years ended December 31, 2020, 2019 and 2018:


(dollars in thousands, except share and per share data)	2020		2019		2018
Net income	$	22,537	$	55,784	$	39,421
Preferred dividends declared	—		(191)		(330)
Preferred stock, premium amortization	—		145		189
Net income available to common shareholders	22,537		55,738		39,280
Common shareholder dividends	(24,699)		(23,389)		(19,838)
Unvested restricted stock award dividends	(259)		(210)		(139)
Undistributed earnings to unvested restricted stock awards	—		(267)		(123)
Undistributed earnings to common shareholders	$	(2,421)	$	31,872	$	19,180
Basic
Distributed earnings to common shareholders	$	24,699	$	23,389	$	19,838
Undistributed earnings to common shareholders	(2,421)		31,872		19,180
Total common shareholders earnings, basic	$	22,278	$	55,261	$	39,018
Diluted
Distributed earnings to common shareholders	$	24,699	$	23,389	$	19,838
Undistributed earnings to common shareholders	(2,421)		31,872		19,180
Total common shareholders earnings	22,278		55,261		39,018
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	—		2		2
Total common shareholders earnings, diluted	$	22,278	$	55,263	$	39,020
Weighted average common shares outstanding, basic	23,336,881		24,288,793		23,130,475
Options	9,245		204,638		418,550
Weighted average common shares outstanding, diluted	23,346,126		24,493,431		23,549,025
Basic earnings per common share	$	0.95	$	2.28	$	1.69
Diluted earnings per common share	0.95		2.26		1.66

CAPITAL REQUIREMENTS (Tables)

12 Months Ended

Dec. 31, 2020

Banking and Thrift [Abstract]

Schedule of actual and required capital amounts and ratios

At December 31, 2020 and 2019, the Company’s and the Bank’s actual and required capital ratios were as follows:


	Actual				Fully Phased-In Regulatory Guidelines Minimum				Required to be Well Capitalized Under Prompt Corrective Action Requirements
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2020
Total risk-based capital ratio
Midland States Bancorp, Inc.	$	710,417	13.24	%	$	563,610	10.50	%	N/A		N/A
Midland States Bank	631,585		11.77		563,420		10.50		$	536,591	10.00%
Tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	494,043		9.20		456,256		8.50		N/A		N/A
Midland States Bank	578,681		10.78		456,102		8.50		429,273		8.00
Common equity tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	429,092		7.99		375,740		7.00		N/A		N/A
Midland States Bank	578,681		10.78		375,614		7.00		348,784		6.50
Tier 1 leverage ratio
Midland States Bancorp, Inc.	494,043		7.50		263,651		4.00		N/A		N/A
Midland States Bank	578,681		8.78		263,537		4.00		329,421		5.00

December 31, 2019
Total risk-based capital ratio
Midland States Bancorp, Inc.	$	772,572	14.72	%	$	515,548	10.50	%	N/A		N/A
Midland States Bank	648,291		13.22		515,035		10.50		$	490,509	10.00%
Tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	516,647		10.52		417,348		8.50		N/A		N/A
Midland States Bank	619,019		12.62		416,933		8.50		392,407		8.00
Common equity tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	451,696		9.20		343,699		7.00		N/A		N/A
Midland States Bank	619,019		12.62		343,356		7.00		318,831		6.50
Tier 1 leverage ratio
Midland States Bancorp, Inc.	516,647		8.74		236,504		4.00		N/A		N/A
Midland States Bank	619,019		10.48		236,214		4.00		295,267		5.00

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured and recorded at fair value


	2020
(dollars in thousands)	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. government sponsored entities and U.S. agency securities	$	35,567	$	—	$	35,567	$	—
Mortgage-backed securities - agency	344,577		—		344,577		—
Mortgage-backed securities - non-agency	20,744		—		20,744		—
State and municipal securities	129,765		—		129,765		—
Corporate securities	146,058		—		145,099		959
Equity securities	9,424		9,424		—		—
Loans held for sale	138,090		—		138,090		—
Interest rate lock commitments	2,217		—		2,217		—
Interest rate swap contracts	1,206		—		1,206		—
Total	$	827,648	$	9,424	$	817,265	$	959
Liabilities
Forward commitments to sell mortgage-backed securities	$	309	$	—	$	309	$	—
Interest rate swap contracts	803		—		803		—
Total	$	1,112	$	—	$	1,112	$	—

Assets measured at fair value on a non-recurring basis:
Loan servicing rights	$	39,276	$	—	$	—	$	39,276
Mortgage servicing rights held for sale	878		—		—		878
Nonperforming loans	13,333		—		12,054		1,279
Other real estate owned	20,247		—		20,247		—
Assets held for sale	4,157		—		4,157		—


	2019
(dollars in thousands)	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. government sponsored entities and U.S. agency securities	$	60,020	$	—	$	60,020	$	—
Mortgage-backed securities - agency	324,974		—		324,974		—
Mortgage-backed securities - non-agency	17,148		—		17,148		—
State and municipal securities	124,555		—		124,555		—
Corporate securities	122,736		—		121,781		955
Equity securities	5,621		5,621		—		—
Loans held for sale	16,431		—		16,431		—
Interest rate lock commitments	3,350		—		3,350		—
Interest rate swap contracts	306		—		306		—
Total	$	675,141	$	5,621	$	668,565	$	955
Liabilities
Interest rate swap contracts	$	306	$	—	$	306	$	—

Assets measured at fair value on a non-recurring basis:
Loan servicing rights	$	53,824	$	—	$	—	$	53,824
Mortgage servicing rights held for sale	1,972		—		—		1,972
Impaired loans	14,693		—		12,518		2,175

Assets held for sale	3,974		—		3,974		—

Schedule presenting activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)


	Corporate Securities
(dollars in thousands)	2020		2019
Balance, beginning of period	$	955	$	1,923
Total realized in earnings (1)	8		52
Total unrealized in other comprehensive income (2)	4		32
Net settlements (principal and interest)	(8)		(1,052)
Balance, end of period	$	959	$	955

(1)Amounts included in interest income from investment securities taxable in the consolidated statements of income.

(2)Represents change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period.

Fair Value, Assets Measured on Recurring Basis


(dollars in thousands)	Fair value		Valuation technique	Unobservable input / assumptions	Range (weighted average)(1)
December 31, 2020
Corporate securities	$	959	Consensus pricing	Net market price	(2.0)	%	—	4.9%	(2.0)%

December 31, 2019
Corporate securities	$	955	Consensus pricing	Net market price	(2.0)	%	—	2.5%	(1.5)%

(1)Unobservable inputs were weighted by the relative fair value of the instruments.

Schedule of (gains) losses recognized on assets measured on a non-recurring basis

The following table presents (gains) losses recognized on assets measured on a non-recurring basis for the years ended December 31, 2020, 2019 and 2018:


(dollars in thousands)	2020		2019		2018
Loan servicing rights	$	12,337	$	2,139	$	(449)
Mortgage servicing rights held for sale	1,692		(490)		458
Nonperforming loans	24,611		10,259		5,800
Other real estate owned	1,390		16		301
Assets held for sale	10,404		3,577		—
Total loss on assets measured on a nonrecurring basis	$	50,434	$	15,501	$	6,110

Schedule presents quantitative information about significant unobservable inputs used in fair value measurements of non-recurring assets (Level 3)


(dollars in thousands)	Fair Value		Valuation technique	Unobservable input / assumptions	Range (weighted average)
December 31, 2020
Loan servicing rights:
Commercial MSR	$	38,322	Discounted cash flow	Prepayment speed	8.00%	-	18.00%	(8.18)%
				Discount rate	10.00%	-	27.00%	(11.48)%

SBA servicing rights	$	954	Discounted cash flow	Prepayment speed	12.01%	-	12.52%	(12.25)%
				Discount rate	No range			(11.00)%

MSR held for sale	$	878	Discounted cash flow	Prepayment speed	14.40%	-	26.28%	(20.34)%
				Discount rate	9.00%	-	11.50%	(10.13)%

December 31, 2019
Loan servicing rights:
Commercial MSR	$	52,693	Discounted cash flow	Prepayment speed	8.00%	-	18.00%	(8.20)%
				Discount rate	10.00%	-	14.00%	(11.02)%

SBA servicing rights	$	1,131	Discounted cash flow	Prepayment speed	8.31%	—	9.21%	(8.60)%
				Discount rate	No range			(11.70)%

MSR held for sale	$	1,972	Discounted cash flow	Prepayment speed	8.64%	—	26.28%	(12.42)%
				Discount rate	9.50%	—	12.50%	(10.75)%

Other:
Impaired loans	$	2,175	Fair value of collateral	Discount for type of property,	4.32%	-	8.00%	(5.22)%
				age of appraisal and current status

Schedule of the fair value option for newly originated residential and commercial loans held for sale


	2020						2019
(dollars in thousands)	Aggregate fair value		Difference		Contractual principal		Aggregate fair value		Difference		Contractual principal
Commercial loans held for sale	$	126,123	$	67	$	126,056	$	8,236	$	206	$	8,030
Residential loans held for sale	11,967		743		11,224		8,195		446		7,749
Total loans held for sale	$	138,090	$	810	$	137,280	$	16,431	$	652	$	15,779


(dollars in thousands)	2020		2019		2018
Commercial loans held for sale	$	(139)	$	(389)	$	252
Residential loans held for sale	318		7		6
Total loans held for sale	$	179	$	(382)	$	258

Schedule presentation of summary of the carrying values and fair value estimates of certain financial instruments

The carrying values and estimated fair value of financial instruments not carried at fair value at December 31, 2020 and 2019 were as follows:


	2020
(dollars in thousands)	Carrying Amount		Fair Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets
Cash and due from banks	$	337,080	$	337,080	$	337,080	$	—	$	—
Federal funds sold	4,560		4,560		4,560		—		—
Nonmarketable equity securities	56,596		56,596		—		56,596		—
Loans, net	5,042,888		5,006,223		—				5,006,223
Accrued interest receivable	23,545		23,545		—		23,545		—

Liabilities
Deposits	$	5,101,016	$	5,108,360	$	—	$	5,108,360	$	—
Short-term borrowings	68,957		68,957		—		68,957		—
FHLB and other borrowings	779,171		807,493		—		807,493		—
Subordinated debt	169,795		176,504		—		176,504		—
Trust preferred debentures	48,814		50,165		—		50,165		—


	2019
(dollars in thousands)	Carrying Amount		Fair Value		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets
Cash and due from banks	$	210,780	$	210,780	$	210,780	$	—	$	—
Federal funds sold	2,920		2,920		2,920		—		—
Nonmarketable equity securities	42,472		42,472		—		42,472		—
Loans, net	4,116,648		4,091,438		—		—		4,091,438
Accrued interest receivable	16,560		16,560		—		16,560		—

Liabilities
Deposits	$	4,074,170	$	4,069,098	$	—	$	4,069,098	$	—
Short-term borrowings	124,235		124,235		—		124,235		—
FHLB and other borrowings	640,631		641,050		—		641,050		—
Subordinated debt	94,134		91,926		—		91,926		—
Trust preferred debentures	47,794		56,805		—		56,805		—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables)

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of loan commitments

Loan commitments at December 31, 2020 and 2019 were as follows:


(dollars in thousands)	2020		2019
Commitments to extend credit	$	894,212	$	725,506
Financial guarantees – standby letters of credit	15,889		106,678

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Schedule of segment financial information

Selected business segment financial information as of and for the years ended December 31, 2020, 2019 and 2018 were as follows:


(dollars in thousands)	Banking		Wealth Management		Other		Total
December 31, 2020
Net interest income (expense)	$	211,120	$	—	$	(11,984)	$	199,136
Provision for credit losses on loans	44,361		—		—		44,361
Noninterest income	38,706		22,802		(259)		61,249
Noninterest expense	170,025		14,938		(953)		184,010
Income (loss) before income taxes (benefit)	35,440		7,864		(11,290)		32,014
Income taxes (benefit)	10,020		2,194		(2,737)		9,477
Net income (loss)	$	25,420	$	5,670	$	(8,553)	$	22,537
Total assets	$	6,985,011	$	27,313	$	(143,784)	$	6,868,540

December 31, 2019
Net interest income (expense)	$	201,534	$	—	$	(11,719)	$	189,815
Provision for credit losses on loans	16,985		—		—		16,985
Noninterest income	53,683		21,832		(233)		75,282
Noninterest expense	160,364		14,850		427		175,641
Income (loss) before income taxes (benefit)	77,868		6,982		(12,379)		72,471
Income taxes (benefit)	18,195		1,850		(3,358)		16,687
Net income (loss)	$	59,673	$	5,132	$	(9,021)	$	55,784
Total assets	$	6,086,947	$	26,015	$	(25,945)	$	6,087,017

December 31, 2018
Net interest income (expense)	$	190,461	$	298	$	(10,672)	$	180,087
Provision for credit losses on loans	9,430		—		—		9,430
Noninterest income	51,769		20,484		(462)		71,791
Noninterest expense	179,989		12,492		(838)		191,643
Income (loss) before income taxes (benefit)	52,811		8,290		(10,296)		50,805
Income taxes (benefit)	11,558		2,130		(2,304)		11,384
Net income (loss)	$	41,253	$	6,160	$	(7,992)	$	39,421
Total assets	$	5,657,179	$	23,899	$	(43,405)	$	5,637,673

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Summary of noninterest income, segregated by revenue

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2020, 2019 and 2018.


(dollars in thousands)	2020		2019		2018
Noninterest income - in-scope of Topic 606
Wealth management revenue:
Trust management/administration fees	$	16,953	$	16,114	$	16,099
Investment advisory fees	2,009		2,171		2,041
Investment brokerage fees	1,465		1,165		1,065
Other	2,375		2,382		1,308
Service charges on deposit accounts:
Nonsufficient fund fees	5,589		7,721		7,672
Other	3,014		3,306		2,768
Interchange revenues	12,266		11,992		10,674
Other income:
Merchant services revenue	1,381		1,506		1,650
Other	3,161		3,475		2,935
Noninterest income - out-of-scope of Topic 606	13,036		25,450		25,579
Total noninterest income	$	61,249	$	75,282	$	71,791

PARENT COMPANY ONLY FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Disclosure [Abstract]

Schedule of condensed balance sheets


Condensed Balance Sheets
(dollars in thousands)
	December 31,
	2020		2019
Assets:
Cash	$	58,904	$	52,673
Investment in common stock of subsidiaries	772,758		832,681

Other assets	11,317		4,934
Total assets	$	842,979	$	890,288
Liabilities:
Subordinated debt	$	169,795	$	176,653
Trust preferred debentures	48,814		48,288
Other borrowings	171		181


Other liabilities	2,808		3,255
Total liabilities	221,588		228,377
Shareholders’ equity	621,391		661,911
Total liabilities and shareholders’ equity	$	842,979	$	890,288

Schedule of condensed statement of income


Condensed Statements of Income
(dollars in thousands)

	Years ended December 31,
	2020		2019		2018
Dividends from subsidiaries	$	89,890	$	43,900	$	17,000
Other income	—		—		6
Interest expense	(12,054)		(11,798)		(10,714)
Other expense	(1,309)		(2,753)		(1,180)
Income before income tax benefit and equity in undistributed (loss) income of subsidiaries	76,527		29,349		5,112
Income tax benefit	2,749		3,371		2,312
Income before equity in undistributed (loss) income of subsidiaries	79,276		32,720		7,424
Equity in undistributed (loss) income of subsidiaries	(56,739)		23,064		31,997
Net income	$	22,537	$	55,784	$	39,421

Schedule of condensed cash flows


Condensed Statements of Cash Flows
(dollars in thousands)

	Years ended December 31,
	2020		2019		2018
Cash flows from operating activities:
Net income	$	22,537	$	55,784	$	39,421
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed loss (income) of subsidiaries	56,739		(23,064)		(31,997)
Share-based compensation expense	2,175		2,364		1,533
Change in other assets	(6,382)		(2,604)		3,273
Change in other liabilities	471		1,528		2,863
Net cash provided by operating activities	75,540		34,008		15,093
Cash flows from investing activities:
Net cash paid in acquisition	—		(1,021)		(32,890)

Net cash used in investing activities	—		(1,021)		(32,890)
Cash flows from financing activities:
Proceeds from issuance of subordinated debt, net of issuance costs	—		98,265		—
Payments made on subordinated debt	(7,443)		(19,543)		—

Subordinated debt prepayment fees	193		1,778		—
Payments made on other borrowings	—		(56,475)		(4,286)
Common stock repurchased	(39,615)		(4,019)		—
Redemption of Series G preferred stock	(10)		—		—
Redemption of Series H preferred stock	—		(2,636)		—
Cash dividends paid on common stock	(24,958)		(23,599)		(19,977)
Cash dividends paid on preferred stock	—		(191)		(330)
Proceeds from issuance of common stock under employee benefit plans	2,524		5,794		2,278
Net cash used in by financing activities	(69,309)		(626)		(22,315)
Net increase (decrease) in cash	6,231		32,361		(40,112)
Cash:
Beginning of period	52,673		20,312		60,424
End of period	$	58,904	$	52,673	$	20,312

QUARTERLY CONDENSED FINANCIAL INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Schedule of unaudited quarterly condensed financial information

The following tables present the unaudited quarterly condensed financial information for the years ended December 31, 2020 and 2019:


	2020 Quarter Ended
(dollars in thousands, except per share data)	March 31		June 30		September 30		December 31
Interest income	$	61,314	$	60,548	$	60,314	$	62,712
Interest expense	14,663		11,559		10,334		9,196
Net interest income	46,651		48,989		49,980		53,516
Provision for credit losses	11,578		10,997		11,728		10,058
Net interest income after provision for credit losses	35,073		37,992		38,252		43,458
Noninterest income	8,598		19,396		18,919		14,336
Noninterest expense	41,666		41,395		53,901		47,048
Income before income taxes	2,005		15,993		3,270		10,746
Income taxes	456		3,424		3,184		2,413
Net income	$	1,549	$	12,569	$	86	$	8,333


Per common share data:
Basic earnings per common share	$	0.06	$	0.53	$	0.00	$	0.36
Diluted earnings per common share	0.06		0.53		0.00		0.36


	2019 Quarter Ended
(dollars in thousands, except per share data)	March 31		June 30		September 30		December 31
Interest income	$	59,432	$	60,636	$	65,006	$	64,444
Interest expense	13,831		14,559		15,556		15,757
Net interest income	45,601		46,077		49,450		48,687
Provision for credit losses	3,243		4,076		4,361		5,305
Net interest income after provision for credit losses	42,358		42,001		45,089		43,382
Noninterest income	17,075		19,587		19,606		19,014
Noninterest expense	41,097		40,194		48,025		46,325
Income before income taxes	18,336		21,394		16,670		16,071
Income taxes	4,354		5,039		4,015		3,279
Net income	13,982		16,355		12,655		12,792
Preferred stock dividends and premium amortization	34		34		(22)		—
Net income available to common shareholders	$	13,948	$	16,321	$	12,677	$	12,792
Per common share data:
Basic earnings per common share	$	0.58	$	0.67	$	0.51	$	0.52
Diluted earnings per common share	0.57		0.67		0.51		0.51

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($)		12 Months Ended
	Jan. 01, 2020	Dec. 31, 2020	Dec. 31, 2019
Accrued interest receivable		$ 19,900,000
Threshold amount for non accrual loans		500,000
Threshold amount for accruing loans past due more than 90 days		100,000
Liabilities for unfunded commitments		2,400,000	$ 1,200,000
Retained earnings		156,327,000	$ 165,920,000
Subsidiaries \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Principal balances of loans serviced for others		$ 3,500,000,000
ASU No. 2016-13 \| PCI Loans
Allowance for credit losses on loans	$ 4,200,000
Noncredit discount	2,900,000
ASU No. 2016-13 \| Restatement
Retained earnings	$ 7,200,000
Minimum
Percentage cost of related equipment to unguaranteed residual values		3.00%
Other intangible assets amortized over a period		1 year
Maximum
Percentage cost of related equipment to unguaranteed residual values		15.00%
Other intangible assets amortized over a period		20 years
Premises \| Minimum
Estimated useful lives		10 years
Premises \| Maximum
Estimated useful lives		40 years
Furniture and equipment \| Minimum
Estimated useful lives		3 years
Furniture and equipment \| Maximum
Estimated useful lives		10 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impact of ASC 326 (Details) $ in Thousands	Jan. 01, 2020 USD ($)
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Allowance for credit losses on loans	$ (40,811)
Allowance for credit losses on unfunded commitments	(1,507)
Previously Reported
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Allowance for credit losses on loans	(28,028)
Allowance for credit losses on unfunded commitments	(1,244)
Restatement
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Allowance for credit losses on loans	(12,783)
Allowance for credit losses on unfunded commitments	(263)
Finance Leases Portfolio
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	332,581
Finance Leases Portfolio \| Previously Reported
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	332,581
Finance Leases Portfolio \| Restatement
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	0
Commercial Loans \| Commercial Portfolio
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	1,056,986
Commercial Loans \| Commercial Portfolio \| Previously Reported
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	1,055,185
Commercial Loans \| Commercial Portfolio \| Restatement
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	1,801
Commercial Real Estate Loans \| Commercial Portfolio
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	1,528,119
Commercial Real Estate Loans \| Commercial Portfolio \| Previously Reported
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	1,526,504
Commercial Real Estate Loans \| Commercial Portfolio \| Restatement
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	1,615
Construction Loans \| Commercial Portfolio
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	209,551
Construction Loans \| Commercial Portfolio \| Previously Reported
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	208,733
Construction Loans \| Commercial Portfolio \| Restatement
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	818
Residential Real Estate Loans \| Residential Portfolio
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	570,882
Residential Real Estate Loans \| Residential Portfolio \| Previously Reported
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	568,291
Residential Real Estate Loans \| Residential Portfolio \| Restatement
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	2,591
Consumer Loans \| Consumer Portfolio
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	710,646
Consumer Loans \| Consumer Portfolio \| Previously Reported
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	710,116
Consumer Loans \| Consumer Portfolio \| Restatement
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Loans	$ 530

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Supplemental disclosures of cash flow information:
Interest paid on deposits and borrowed funds	$ 47,712	$ 58,158	$ 40,956
Income tax paid, net of refunds	2,977	479	580
Supplemental disclosures of noncash investing and financing activities:
Transfer of investment securities available for sale to equity securities	0	0	2,830
Transfer of loans to loans held for sale	542,060	419,215	0
Transfer of loans to other real estate owned	16,736	3,819	1,104
Transfer of premises and equipment, net to assets held for sale	$ 11,344	$ 4,350	$ 0

DISPOSITIONS AND ACQUISITIONS - Narrative (Details) $ in Millions	Jul. 17, 2019 USD ($) center shares	Feb. 28, 2018 USD ($) center shares	Dec. 31, 2020 USD ($)
Subsidiaries \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Business Acquisition
Principal balances of loans serviced for others			$ 3,500.0
HomeStar Bank
Business Acquisition
Number of service banking centers acquired \| center	5
Total consideration	$ 11.4
Cash transferred	$ 1.0
Shares issued (in shares) \| shares	404,968
Transaction and integration costs	$ 7.4
Alpine Bank
Business Acquisition
Number of service banking centers acquired \| center		19
Total consideration		$ 173.2
Cash transferred		$ 33.3
Shares issued (in shares) \| shares		4,463,200
Transaction and integration costs		$ 22.4

DISPOSITIONS AND ACQUISITIONS - Allocation of Consideration (Details) - USD ($) $ in Thousands	Jul. 17, 2019	Feb. 28, 2018	Dec. 31, 2020	Dec. 31, 2019
Liabilities assumed:
Goodwill			$ 161,904	$ 171,758
HomeStar Bank
Assets acquired:
Cash and cash equivalents	$ 70,900
Investment securities available for sale	54,963
Equity securities	2,153
Loans	211,070
Loans held for sale	3,562
Premises and equipment	4,049
Operating lease right-of-use asset	5,177
Other real estate owned	1,092
Nonmarketable equity securities	454
Accrued interest receivable	1,185
Loan servicing rights	1,089
Mortgage servicing rights held for sale	1,701
Intangible assets	4,600
Cash surrender value of life insurance policies	0
Deferred tax assets, net	2,732
Other assets	1,541
Total assets acquired	366,268
Liabilities assumed:
Deposits	321,740
Short-term borrowings	0
FHLB advances and other borrowings	31,369
Trust preferred debentures	0
Accrued interest payable	115
Operating lease liabilities	6,232
Deferred tax liabilities, net	0
Other liabilities	3,575
Total liabilities assumed	363,031
Net assets acquired	3,237
Goodwill	8,123
Total consideration paid	11,360
Intangible assets:
Total intangible assets	4,600
HomeStar Bank \| Core deposit intangibles
Intangible assets:
Total intangible assets	$ 4,300
Estimated useful lives:
Other intangible assets amortized over a period	12 years
HomeStar Bank \| Customer relationship intangibles
Intangible assets:
Total intangible assets	$ 300
Estimated useful lives:
Other intangible assets amortized over a period	6 years
Alpine Bank
Assets acquired:
Cash and cash equivalents		$ 69,459
Investment securities available for sale		293,428
Equity securities		8,372
Loans		786,186
Loans held for sale		3,416
Premises and equipment		18,126
Operating lease right-of-use asset		0
Other real estate owned		53
Nonmarketable equity securities		2,038
Accrued interest receivable		4,414
Loan servicing rights		0
Mortgage servicing rights held for sale		3,068
Intangible assets		27,400
Cash surrender value of life insurance policies		22,578
Deferred tax assets, net		0
Other assets		4,770
Total assets acquired		1,243,308
Liabilities assumed:
Deposits		1,111,130
Short-term borrowings		0
FHLB advances and other borrowings		18,127
Trust preferred debentures		0
Accrued interest payable		539
Operating lease liabilities		0
Deferred tax liabilities, net		1,749
Other liabilities		4,500
Total liabilities assumed		1,136,045
Net assets acquired		107,263
Goodwill		65,964
Total consideration paid		173,227
Intangible assets:
Total intangible assets		27,400
Alpine Bank \| Core deposit intangibles
Intangible assets:
Total intangible assets		$ 21,100
Estimated useful lives:
Other intangible assets amortized over a period		13 years
Alpine Bank \| Customer relationship intangibles
Intangible assets:
Total intangible assets		$ 6,300
Estimated useful lives:
Other intangible assets amortized over a period		13 years

CASH AND DUE FROM BANKS (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Cash and Cash Equivalents [Abstract]
Required cash reserve	$ 0	$ 36,900,000

INVESTMENT SECURITIES - Classified (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Investment securities available for sale
Amortized Cost	$ 661,713	$ 639,168
Gross unrealized gains	16,510	11,139
Gross unrealized losses	1,146	874
Allowance for credit losses	366
Fair value	676,711	649,433
U.S. government sponsored entities and U.S. agency securities
Investment securities available for sale
Amortized Cost	35,287	59,600
Gross unrealized gains	377	442
Gross unrealized losses	97	22
Allowance for credit losses	0
Fair value	35,567	60,020
Mortgage-backed securities - agency
Investment securities available for sale
Amortized Cost	338,340	321,840
Gross unrealized gains	6,284	3,368
Gross unrealized losses	47	234
Allowance for credit losses	0
Fair value	344,577	324,974
Mortgage-backed securities - non-agency
Investment securities available for sale
Amortized Cost	20,411	17,198
Gross unrealized gains	333	3
Gross unrealized losses	0	53
Allowance for credit losses	0
Fair value	20,744	17,148
State and municipal securities
Investment securities available for sale
Amortized Cost	122,488	119,371
Gross unrealized gains	7,311	5,195
Gross unrealized losses	5	11
Allowance for credit losses	29	0
Fair value	129,765	124,555
Corporate securities
Investment securities available for sale
Amortized Cost	145,187	121,159
Gross unrealized gains	2,205	2,131
Gross unrealized losses	997	554
Allowance for credit losses	337	0
Fair value	$ 146,058	$ 122,736

INVESTMENT SECURITIES - Amortized cost and fair value (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Amortized cost
Within one year	$ 30,924
After one year through five years	60,927
After five years through ten years	176,530
After ten years	34,581
Mortgage-backed securities	358,751
Total investment securities available for sale	661,713
Fair value
Within one year	31,329
After one year through five years	63,470
After five years through ten years	180,383
After ten years	36,208
Mortgage-backed securities	365,321
Total investment securities available for sale	$ 676,711

INVESTMENT SECURITIES - Summary of Available-for-Sale Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Investment securities available for sale
Proceeds from sales	$ 28,256	$ 33,464	$ 20,178
Gross realized gains on sales	1,721	786	542
Gross realized losses on sales	0	(190)	(25)
Equity securities
Proceeds from sales	0	105	7,733
Gross realized gains on sales	0	78	0
Gross realized losses on sales	0	0	(53)
Net unrealized gains (losses)	$ 577	$ 93	$ (10)

INVESTMENT SECURITIES - Continuous unrealized loss position (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Changes in allowance for loan losses :
Ending balance	$ 366
Fair Value
Less than 12 Months, Fair value	56,085	$ 115,677
Less than 12 Months, Unrealized loss	666	737
12 Months or more, Fair value	0	11,085
12 Months or more, Unrealized loss	0	137
Total, Fair value	56,085	126,762
Total, Unrealized loss	666	874
U.S. government sponsored entities and U.S. agency securities
Changes in allowance for loan losses :
Ending balance	0
Fair Value
Less than 12 Months, Fair value	9,903	7,200
Less than 12 Months, Unrealized loss	97	22
12 Months or more, Fair value	0	0
12 Months or more, Unrealized loss	0	0
Total, Fair value	9,903	7,200
Total, Unrealized loss	97	22
Mortgage-backed securities - agency
Changes in allowance for loan losses :
Ending balance	0
Fair Value
Less than 12 Months, Fair value	26,172	75,336
Less than 12 Months, Unrealized loss	47	170
12 Months or more, Fair value	0	7,170
12 Months or more, Unrealized loss	0	64
Total, Fair value	26,172	82,506
Total, Unrealized loss	47	234
Mortgage-backed securities - non-agency
Changes in allowance for loan losses :
Ending balance	0
Fair Value
Less than 12 Months, Fair value	0	11,059
Less than 12 Months, Unrealized loss	0	53
12 Months or more, Fair value	0	0
12 Months or more, Unrealized loss	0	0
Total, Fair value	0	11,059
Total, Unrealized loss	0	53
State and municipal securities
Changes in allowance for loan losses :
Beginning balance	0
Current-period provision for expected credit losses	29
Ending balance	29
Fair Value
Less than 12 Months, Fair value	0	1,813
Less than 12 Months, Unrealized loss	0	11
12 Months or more, Fair value	0	0
12 Months or more, Unrealized loss	0	0
Total, Fair value	0	1,813
Total, Unrealized loss	0	11
Corporate securities
Changes in allowance for loan losses :
Beginning balance	0
Current-period provision for expected credit losses	337
Ending balance	337
Fair Value
Less than 12 Months, Fair value	20,010	20,269
Less than 12 Months, Unrealized loss	522	481
12 Months or more, Fair value	0	3,915
12 Months or more, Unrealized loss	0	73
Total, Fair value	20,010	24,184
Total, Unrealized loss	$ 522	$ 554

INVESTMENT SECURITIES - Narrative (Details) $ in Thousands	Dec. 31, 2020 USD ($) security	Dec. 31, 2019 USD ($)
Investments, Debt and Equity Securities [Abstract]
Number of investment securities available for sale \| security	22
Aggregate depreciation	1.17%
Equity securities \| $	$ 9,424	$ 5,621

LOANS - Summary of loans (Details) - USD ($) $ in Thousands	12 Months Ended
LOANS - Summary of loans (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Summary of loans
Total loans, gross	$ 5,103,331	$ 4,401,410
Loans, additional information
Net deferred loan fees	700	2,200
Unearned income	46,500	39,600
Loans held for sale	138,090	16,431
Proceeds from sales of loans held for sale	1,218,950	949,745	$ 590,282
Commercial Portfolio
Summary of loans
Total loans, gross	3,384,285	2,790,422
Commercial Portfolio \| Commercial Loans
Summary of loans
Total loans, gross	937,382	628,056
Commercial Portfolio \| Commercial other
Summary of loans
Total loans, gross	748,193	427,129
Commercial Portfolio \| Commercial real estate non-owner occupied
Summary of loans
Total loans, gross	871,451	825,874
Commercial Portfolio \| Commercial real estate owner occupied
Summary of loans
Total loans, gross	423,257	464,601
Commercial Portfolio \| Multi-family
Summary of loans
Total loans, gross	151,534	146,795
Commercial Portfolio \| Farmland
Summary of loans
Total loans, gross	79,731	89,234
Commercial Portfolio \| Construction And Land Development Loans
Summary of loans
Total loans, gross	172,737	208,733
Residential Portfolio \| Residential first lien
Summary of loans
Total loans, gross	358,329	456,107
Residential Portfolio \| Other residential
Summary of loans
Total loans, gross	84,551	112,184
Consumer Portfolio
Summary of loans
Total loans, gross		710,116
Consumer Portfolio \| Consumer Loans
Summary of loans
Total loans, gross	80,642	100,732
Consumer Portfolio \| Consumer other
Summary of loans
Total loans, gross	785,460	609,384
Finance Leases Portfolio
Summary of loans
Total loans, gross	410,064	332,581
Commercial Real Estate, Residential Real Estate And Consumer Loans
Loans, additional information
Proceeds from sales of loans held for sale	$ 1,220,000	$ 949,700

LOANS - Narrative (Details)	3 Months Ended	12 Months Ended
LOANS - Narrative (Details)	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($) region	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Summary of loans
Loans		$ 5,103,331,000	$ 4,401,410,000
Threshold amount for non accrual loans		500,000
Amount of financing receivable reclassified to non-accrual	$ 9,800,000
Interest income recognized on nonaccrual loans		0	0	$ 0
Additional interest income that would have been recorded had they been current		3,300,000	2,200,000	1,800,000
Recognized interest income on loans modified under troubled debt restructurings		$ 100,000	100,000	100,000
Number of main regions \| region		4
Allowance for loan losses on TDRs		$ 800,000	2,000,000.0
Unfunded commitments in connection with TDRs		0	0
Commercial Portfolio
Summary of loans
Loans		3,384,285,000	2,790,422,000
COVID-19
Summary of loans
Outstanding balance of modifications made, not considered TDRs		209,100,000
Performing
Summary of loans
TDRs, individually evaluated for impairment, threshold		50,000
PPP Loans \| Commercial Portfolio
Summary of loans
Loans		184,400,000
Directors, executive officers, principal shareholders and affiliates
Summary of loans
Loans outstanding from related parties		$ 19,693,000	$ 22,989,000	$ 26,536,000

LOANS - Loans to Directors, Executive Officers, Principal Shareholders and Affiliates (Details) - Directors, executive officers, principal shareholders and affiliates - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Summary of loans
Beginning balance	$ 22,989	$ 26,536
New loans and other additions	2,563	3,400
Repayments and other reductions	(5,859)	(6,947)
Ending balance	$ 19,693	$ 22,989

LOANS - Summary of changes in the ACL on loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Summary of impaired loans
Beginning balance	$ 28,028	$ 20,903	$ 16,431
Provision for credit losses on loans	43,149	16,985	9,430
Charge-offs	(25,454)	(12,068)	(6,989)
Recoveries	1,937	2,208	2,031
Ending balance	60,443	28,028	20,903
PCI Loans
Summary of impaired loans
Beginning balance	4,237
Ending balance		4,237
ASU No. 2016-13
Summary of impaired loans
Beginning balance	8,546
Ending balance		8,546
Commercial Portfolio \| Commercial Loans
Summary of impaired loans
Beginning balance	10,031	9,524	5,256
Provision for credit losses on loans	11,890	3,852	4,941
Charge-offs	(5,589)	(3,412)	(1,236)
Recoveries	147	67	563
Ending balance	19,851	10,031	9,524
Commercial Portfolio \| Commercial Loans \| PCI Loans
Summary of impaired loans
Beginning balance	1,045
Ending balance		1,045
Commercial Portfolio \| Commercial Loans \| ASU No. 2016-13
Summary of impaired loans
Beginning balance	2,327
Ending balance		2,327
Commercial Portfolio \| Commercial Real Estate Loans
Summary of impaired loans
Beginning balance	10,272	4,723	5,044
Provision for credit losses on loans	23,091	7,939	(207)
Charge-offs	(13,637)	(3,339)	(492)
Recoveries	324	949	378
Ending balance	25,465	10,272	4,723
Commercial Portfolio \| Commercial Real Estate Loans \| PCI Loans
Summary of impaired loans
Beginning balance	1,311
Ending balance		1,311
Commercial Portfolio \| Commercial Real Estate Loans \| ASU No. 2016-13
Summary of impaired loans
Beginning balance	4,104
Ending balance		4,104
Commercial Portfolio \| Construction And Land Development Loans
Summary of impaired loans
Beginning balance	290	372	518
Provision for credit losses on loans	(121)	(53)	(227)
Charge-offs	(376)	(44)	0
Recoveries	107	15	81
Ending balance	1,433	290	372
Commercial Portfolio \| Construction And Land Development Loans \| PCI Loans
Summary of impaired loans
Beginning balance	809
Ending balance		809
Commercial Portfolio \| Construction And Land Development Loans \| ASU No. 2016-13
Summary of impaired loans
Beginning balance	724
Ending balance		724
Residential Portfolio \| Residential Real Estate Loans
Summary of impaired loans
Beginning balance	2,499	2,041	2,750
Provision for credit losses on loans	(458)	1,392	(517)
Charge-offs	(522)	(1,076)	(361)
Recoveries	184	142	169
Ending balance	3,929	2,499	2,041
Residential Portfolio \| Residential Real Estate Loans \| PCI Loans
Summary of impaired loans
Beginning balance	1,015
Ending balance		1,015
Residential Portfolio \| Residential Real Estate Loans \| ASU No. 2016-13
Summary of impaired loans
Beginning balance	1,211
Ending balance		1,211
Consumer Portfolio
Summary of impaired loans
Beginning balance	2,642
Ending balance		2,642
Consumer Portfolio \| Consumer Loans
Summary of impaired loans
Beginning balance	2,642	2,154	1,344
Provision for credit losses on loans	1,212	1,767	2,156
Charge-offs	(1,624)	(1,946)	(1,876)
Recoveries	645	667	530
Ending balance	2,338	2,642	2,154
Consumer Portfolio \| Consumer Loans \| PCI Loans
Summary of impaired loans
Beginning balance	57
Ending balance		57
Consumer Portfolio \| Consumer Loans \| ASU No. 2016-13
Summary of impaired loans
Beginning balance	(594)
Ending balance		(594)
Finance Leases Portfolio
Summary of impaired loans
Beginning balance	2,294	2,089	1,519
Provision for credit losses on loans	7,535	2,088	3,284
Charge-offs	(3,706)	(2,251)	(3,024)
Recoveries	530	368	310
Ending balance	7,427	2,294	$ 2,089
Finance Leases Portfolio \| PCI Loans
Summary of impaired loans
Beginning balance	0
Ending balance		0
Finance Leases Portfolio \| ASU No. 2016-13
Summary of impaired loans
Beginning balance	$ 774
Ending balance		$ 774

LOANS - Allowance for loan losses and recorded investment (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance for credit losses on loans:
Loans individually evaluated for impairment		$ 9,977
Loans collectively evaluated for impairment		788
Non-impaired loans collectively evaluated for impairment		16,080
Loans acquired with deteriorated credit quality		1,183
Total allowance for credit losses on loans	$ 60,443	28,028	$ 20,903	$ 16,431
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment		35,736
Impaired loans collectively evaluated for impairment		6,346
Non-impaired loans collectively evaluated for impairment		4,316,617
Loans acquired with deteriorated credit quality		42,711
Total loans	5,103,331	4,401,410
Commercial Portfolio
Recorded investment (loan balance):
Total loans	3,384,285	2,790,422
Commercial Portfolio \| Commercial and Commercial Other
Allowance for credit losses on loans:
Loans individually evaluated for impairment		3,563
Loans collectively evaluated for impairment		69
Non-impaired loans collectively evaluated for impairment		6,380
Loans acquired with deteriorated credit quality		19
Total allowance for credit losses on loans		10,031
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment		5,767
Impaired loans collectively evaluated for impairment		511
Non-impaired loans collectively evaluated for impairment		1,045,829
Loans acquired with deteriorated credit quality		3,078
Total loans		1,055,185
Commercial Portfolio \| Commercial Real Estate Loans
Allowance for credit losses on loans:
Loans individually evaluated for impairment		5,968
Loans collectively evaluated for impairment		100
Non-impaired loans collectively evaluated for impairment		3,643
Loans acquired with deteriorated credit quality		561
Total allowance for credit losses on loans	25,465	10,272	4,723	5,044
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment		22,698
Impaired loans collectively evaluated for impairment		764
Non-impaired loans collectively evaluated for impairment		1,482,935
Loans acquired with deteriorated credit quality		20,107
Total loans		1,526,504
Commercial Portfolio \| Construction And Land Development Loans
Allowance for credit losses on loans:
Loans individually evaluated for impairment		0
Loans collectively evaluated for impairment		14
Non-impaired loans collectively evaluated for impairment		272
Loans acquired with deteriorated credit quality		4
Total allowance for credit losses on loans	1,433	290	372	518
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment		1,245
Impaired loans collectively evaluated for impairment		104
Non-impaired loans collectively evaluated for impairment		201,707
Loans acquired with deteriorated credit quality		5,677
Total loans	172,737	208,733
Residential Portfolio \| Residential Real Estate Loans
Allowance for credit losses on loans:
Loans individually evaluated for impairment		290
Loans collectively evaluated for impairment		444
Non-impaired loans collectively evaluated for impairment		1,269
Loans acquired with deteriorated credit quality		496
Total allowance for credit losses on loans	3,929	2,499	2,041	2,750
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment		5,329
Impaired loans collectively evaluated for impairment		3,695
Non-impaired loans collectively evaluated for impairment		546,630
Loans acquired with deteriorated credit quality		12,637
Total loans		568,291
Consumer Portfolio
Allowance for credit losses on loans:
Loans individually evaluated for impairment		0
Loans collectively evaluated for impairment		39
Non-impaired loans collectively evaluated for impairment		2,500
Loans acquired with deteriorated credit quality		103
Total allowance for credit losses on loans		2,642
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment		0
Impaired loans collectively evaluated for impairment		376
Non-impaired loans collectively evaluated for impairment		708,528
Loans acquired with deteriorated credit quality		1,212
Total loans		710,116
Consumer Portfolio \| Consumer Loans
Allowance for credit losses on loans:
Total allowance for credit losses on loans	2,338	2,642	2,154	1,344
Recorded investment (loan balance):
Total loans	80,642	100,732
Finance Leases Portfolio
Allowance for credit losses on loans:
Loans individually evaluated for impairment		156
Loans collectively evaluated for impairment		122
Non-impaired loans collectively evaluated for impairment		2,016
Loans acquired with deteriorated credit quality		0
Total allowance for credit losses on loans	7,427	2,294	$ 2,089	$ 1,519
Recorded investment (loan balance):
Impaired loans individually evaluated for impairment		697
Impaired loans collectively evaluated for impairment		896
Non-impaired loans collectively evaluated for impairment		330,988
Loans acquired with deteriorated credit quality		0
Total loans	$ 410,064	$ 332,581

LOANS - Risk rating (Details)	12 Months Ended
LOANS - Risk rating (Details)	Dec. 31, 2020
Commercial Portfolio \| Credit Risk State One
Risk category
Commercial Loans Risk Rating	0-5
Commercial Portfolio \| Credit Risk State Two
Risk category
Commercial Loans Risk Rating	6
Commercial Portfolio \| Credit Risk State Three
Risk category
Commercial Loans Risk Rating	7
Commercial Portfolio \| Credit Risk State Four
Risk category
Commercial Loans Risk Rating	8
Commercial Portfolio \| Credit Risk State Default
Risk category
Commercial Loans Risk Rating	9+ and nonaccrual
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State One \| Minimum
Risk category
Consumer Loans and Equipment Finance Loans and Leases Days Past Due	0 days
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State One \| Maximum
Risk category
Consumer Loans and Equipment Finance Loans and Leases Days Past Due	14 days
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State Two \| Minimum
Risk category
Consumer Loans and Equipment Finance Loans and Leases Days Past Due	15 days
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State Two \| Maximum
Risk category
Consumer Loans and Equipment Finance Loans and Leases Days Past Due	29 days
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State Three \| Minimum
Risk category
Consumer Loans and Equipment Finance Loans and Leases Days Past Due	30 days
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State Three \| Maximum
Risk category
Consumer Loans and Equipment Finance Loans and Leases Days Past Due	59 days
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State Four \| Minimum
Risk category
Consumer Loans and Equipment Finance Loans and Leases Days Past Due	60 days
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State Four \| Maximum
Risk category
Consumer Loans and Equipment Finance Loans and Leases Days Past Due	89 days
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State Default \| Minimum
Risk category
Consumer Loans and Equipment Finance Loans and Leases Days Past Due	90 days

LOANS - Non-accrural (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Summary of loans
Nonaccrural with Allowance	$ 38,489	$ 23,267
Nonaccrural with no Allowance	11,139	15,134
Total Nonaccrual	49,628	38,401
Commercial Portfolio
Summary of loans
Nonaccrural with Allowance	25,291	17,206
Nonaccrural with no Allowance	10,068	11,683
Total Nonaccrual	35,359	28,889
Commercial Portfolio \| Commercial Loans
Summary of loans
Nonaccrural with Allowance	3,498	1,373
Nonaccrural with no Allowance	0	119
Total Nonaccrual	3,498	1,492
Commercial Portfolio \| Commercial other
Summary of loans
Nonaccrural with Allowance	2,634	2,832
Nonaccrural with no Allowance	0	1,519
Total Nonaccrual	2,634	4,351
Commercial Portfolio \| Commercial real estate non-owner occupied
Summary of loans
Nonaccrural with Allowance	5,509	6,343
Nonaccrural with no Allowance	3,823	4,572
Total Nonaccrual	9,332	10,915
Commercial Portfolio \| Commercial real estate owner occupied
Summary of loans
Nonaccrural with Allowance	3,598	1,748
Nonaccrural with no Allowance	3,227	2,648
Total Nonaccrual	6,825	4,396
Commercial Portfolio \| Multi-family
Summary of loans
Nonaccrural with Allowance	7,921	4,801
Nonaccrural with no Allowance	2,325	1,430
Total Nonaccrual	10,246	6,231
Commercial Portfolio \| Farmland
Summary of loans
Nonaccrural with Allowance	0	50
Nonaccrural with no Allowance	0	150
Total Nonaccrual	0	200
Commercial Portfolio \| Construction And Land Development Loans
Summary of loans
Nonaccrural with Allowance	2,131	59
Nonaccrural with no Allowance	693	1,245
Total Nonaccrual	2,824	1,304
Residential Portfolio \| Residential first lien
Summary of loans
Nonaccrural with Allowance	8,534	3,724
Nonaccrural with no Allowance	1,071	2,416
Total Nonaccrual	9,605	6,140
Residential Portfolio \| Other residential
Summary of loans
Nonaccrural with Allowance	2,437	744
Nonaccrural with no Allowance	0	912
Total Nonaccrual	2,437	1,656
Consumer Portfolio \| Consumer Loans
Summary of loans
Nonaccrural with Allowance	262	334
Nonaccrural with no Allowance	0	7
Total Nonaccrual	262	341
Consumer Portfolio \| Consumer other
Summary of loans
Nonaccrural with Allowance	0	0
Nonaccrural with no Allowance	0	0
Total Nonaccrual	0	0
Finance Leases Portfolio
Summary of loans
Nonaccrural with Allowance	1,965	1,259
Nonaccrural with no Allowance	0	116
Total Nonaccrual	$ 1,965	$ 1,375

LOANS - Collateral dependent loans (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Commercial Portfolio
Summary of loans
Collateral dependent loans	$ 18,973
Commercial Portfolio \| Commercial other
Summary of loans
Collateral dependent loans	0
Commercial Portfolio \| Commercial real estate non-owner occupied
Summary of loans
Collateral dependent loans	8,159
Commercial Portfolio \| Commercial real estate owner occupied
Summary of loans
Collateral dependent loans	0
Commercial Portfolio \| Multi-family
Summary of loans
Collateral dependent loans	10,121
Commercial Portfolio \| Construction And Land Development Loans
Summary of loans
Collateral dependent loans	693
Residential Portfolio \| Residential first lien
Summary of loans
Collateral dependent loans	$ 0

LOANS - TDRs by portfolio (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
TDRs by loan portfolio (excluding PCI loans):
Accruing	$ 2,901	$ 3,318
Non-accrual	9,524	12,418
Total	12,425	15,736
Commercial Portfolio \| Commercial Loans
TDRs by loan portfolio (excluding PCI loans):
Accruing	967	435
Non-accrual	558	369
Total	1,525	804
Commercial Portfolio \| Commercial Real Estate Loans
TDRs by loan portfolio (excluding PCI loans):
Accruing	866	1,720
Non-accrual	4,314	9,834
Total	5,180	11,554
Commercial Portfolio \| Construction And Land Development Loans
TDRs by loan portfolio (excluding PCI loans):
Accruing	39	45
Non-accrual	909	167
Total	948	212
Residential Portfolio \| Residential Real Estate Loans
TDRs by loan portfolio (excluding PCI loans):
Accruing	988	1,083
Non-accrual	3,705	1,993
Total	4,693	3,076
Consumer Portfolio \| Consumer Loans
TDRs by loan portfolio (excluding PCI loans):
Accruing	41	35
Non-accrual	0	0
Total	41	35
Finance Leases Portfolio
TDRs by loan portfolio (excluding PCI loans):
Accruing	0	0
Non-accrual	38	55
Total	$ 38	$ 55

LOANS - TDRs by portfolio - restructured and subsequently defaulted (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) loan	Dec. 31, 2019 USD ($) loan	Dec. 31, 2018 USD ($) loan
Troubled debt restructurings:
Number of loans \| loan	37	37	36
Pre-modification outstanding balance	$ 5,164	$ 3,897	$ 2,832
Post-modification outstanding balance	$ 4,455	$ 3,140	$ 2,799
Commercial Portfolio \| Commercial Loans
Troubled debt restructurings:
Number of loans \| loan	4	1	2
Pre-modification outstanding balance	$ 989	$ 249	$ 423
Post-modification outstanding balance	$ 967	$ 249	$ 408
Commercial Portfolio \| Commercial Real Estate Loans
Troubled debt restructurings:
Number of loans \| loan	4	3	2
Pre-modification outstanding balance	$ 797	$ 1,924	$ 1,571
Post-modification outstanding balance	$ 383	$ 1,322	$ 1,565
Commercial Portfolio \| Construction And Land Development Loans
Troubled debt restructurings:
Number of loans \| loan	3	2	0
Pre-modification outstanding balance	$ 1,010	$ 221	$ 0
Post-modification outstanding balance	$ 900	$ 167	$ 0
Residential Portfolio \| Residential Real Estate Loans
Troubled debt restructurings:
Number of loans \| loan	22	25	7
Pre-modification outstanding balance	$ 2,334	$ 1,422	$ 708
Post-modification outstanding balance	$ 2,172	$ 1,322	$ 696
Consumer Portfolio \| Consumer Loans
Troubled debt restructurings:
Number of loans \| loan	4	5	25
Pre-modification outstanding balance	$ 34	$ 26	$ 130
Post-modification outstanding balance	$ 33	$ 25	$ 130
Finance Leases Portfolio
Troubled debt restructurings:
Number of loans \| loan	0	1	0
Pre-modification outstanding balance	$ 0	$ 55	$ 0
Post-modification outstanding balance	$ 0	$ 55	$ 0

PREMISES AND EQUIPMENT, NET - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 115,292	$ 128,265
Accumulated depreciation	(41,168)	(37,210)
Premises and equipment, net	74,124	91,055
Land
Property, Plant and Equipment [Line Items]
Premises and equipment gross	16,158	19,123
Buildings and improvements
Property, Plant and Equipment [Line Items]
Premises and equipment gross	65,932	77,296
Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 33,202	$ 31,846

PREMISES AND EQUIPMENT, NET - Narrative (Details) ft² in Thousands, $ in Thousands	1 Months Ended	12 Months Ended
	Sep. 30, 2020 USD ($) ft² branch	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Mar. 31, 2020 facility	Sep. 30, 2019 facility
Property, Plant and Equipment [Abstract]
Depreciation on premises and equipment		$ 6,942	$ 6,583	$ 6,166
Restructuring And Related Cost, Number Of Stores Eliminated \| branch	13
Restructuring And Related Cost, Area Of Office Space To Be Vacated \| ft²	23
Impairment related to facilities optimization	$ 10,400	12,847	3,577	$ 0
Reclassification from premises and equipment, net to other assets	$ 2,300
Number of banking facilities to be closed to Homestar \| facility					2	1
Number of banking facilities to be consolidated to Homestar banking facilities \| facility						2
Number of banking facilities to be consolidated to footprint \| facility						3
Asset impairment charges		3,200
Assets held for sale		$ 4,200	$ 4,000

LEASES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
LEASES - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
LEASES
Operating lease right-of-use assets	$ 9,177	$ 14,224
Operating lease liabilities	11,958	15,369
Lease impairment	$ 2,400
Renewal term of lease	10 years
Net rent expense under operating leases	$ 2,300	$ 2,800	$ 3,200
Minimum
LEASES
Remaining lease terms	8 months
Maximum
LEASES
Remaining lease terms	12 years

LEASES - Information Related to Operating Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease cost	$ 2,943	$ 2,752
Operating cash flows related to leases	3,280	3,241
Right-of-use assets obtained in exchange for lease obligations	1,616	18,482
Right-of-use assets derecognized due to terminations or impairment	$ (4,467)	$ 0
Weighted average remaining lease term	8 years 1 month 6 days	8 years
Weighted average discount rate	2.90%	2.98%

LEASES - Projected Minimum Rental Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Operating Lease Payments
2021	$ 2,200
2022	2,184
2023	1,899
2024	1,546
2025	762
Thereafter	4,924
Total future minimum lease payments	13,515
Less imputed interest	(1,557)
Total operating lease liabilities	$ 11,958	$ 15,369

LOAN SERVICING RIGHTS - Narrative (Details) - USD ($)	12 Months Ended
LOAN SERVICING RIGHTS - Narrative (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
MORTGAGE SERVICING RIGHTS
Prepayment rate	8.18%	8.20%
Discount rate		11.02%
Loan servicing rights	$ 39,276,000	$ 53,824,000
Commercial FHA Mortgage Loans
MORTGAGE SERVICING RIGHTS
Discount rate	11.48%
Principal balances of loans serviced for others	$ 3,500,000,000	4,080,000,000.00
Servicing Asset at Amortized Cost	38,322,000	57,637,000	$ 56,252,000	$ 55,714,000
Originated servicing	1,128,000	4,124,000	3,174,000
Servicing Asset at Amortized Cost, Amortization	(3,162,000)	(2,739,000)	(2,636,000)
Servicing Asset at Amortized Cost, Other than Temporary Impairments	(17,281,000)	0	0
Valuation Allowance for Impairment of Recognized Servicing Assets, Balance	0	4,944,000	2,805,000	3,254,000
Additions	12,337,000	2,698,000	931,000
Valuation Allowance for Impairment of Recognized Servicing Assets, Deductions for Aggregate Write-Downs	(17,281,000)	(559,000)	(1,380,000)
Servicing Asset at Fair Value Amount Net of Valuation Allowance	38,322,000	52,693,000	53,447,000
Fair value	38,322,000	52,693,000	53,447,000	$ 52,460,000
SBA servicing rights
MORTGAGE SERVICING RIGHTS
Principal balances of loans serviced for others	49,200,000	48,200,000
Loan servicing rights	1,000,000.0	1,100,000
Residential mortgage loans
MORTGAGE SERVICING RIGHTS
Principal balances of loans serviced for others	382,300,000	381,600,000
Sale of mortgage servicing rights held for sale	0	3,300,000	$ 10,200,000
Mortgage servicing rights held for sale	$ 900,000	$ 2,000,000.0

LOAN SERVICING RIGHTS - Changes in MSR (Details) - Commercial FHA Mortgage Loans - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loan servicing rights:
Balance, beginning of period	$ 57,637	$ 56,252	$ 55,714
Originated servicing	1,128	4,124	3,174
Amortization	(3,162)	(2,739)	(2,636)
Permanent impairment	(17,281)	0	0
Balance, end of period	38,322	57,637	56,252
Valuation allowances:
Balance, beginning of period	4,944	2,805	3,254
Additions	12,337	2,698	931
Reductions	(17,281)	(559)	(1,380)
Balance, end of period	0	4,944	2,805
Loan servicing rights, net	38,322	52,693	53,447
Fair value	$ 38,322	$ 52,693	$ 53,447	$ 52,460

GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($)		8 Months Ended	12 Months Ended
	Aug. 28, 2020	Aug. 31, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Finite-lived intangible assets
Goodwill			$ 161,904,000	$ 171,758,000
Goodwill impairment loss		$ 0
Impairment of intangible assets			0	0
Amortization of intangible assets			6,504,000	7,090,000	$ 6,956,000
Commercial FHA origination and servicing
Finite-lived intangible assets
Goodwill			$ 0	$ 10,892,000
Goodwill derecognized	$ 10,900,000

GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Intangible assets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Carrying amount of goodwill
Goodwill	$ 161,904	$ 171,758
Finite-lived intangible assets
Gross Carrying Amount	71,083	71,083
Accumulated Amortization	(42,701)	(36,197)
Total	28,382	34,886
Core deposit intangibles
Finite-lived intangible assets
Gross Carrying Amount	57,012	57,012
Accumulated Amortization	(36,005)	(30,674)
Total	21,007	26,338
Customer relationship intangibles
Finite-lived intangible assets
Gross Carrying Amount	14,071	14,071
Accumulated Amortization	(6,696)	(5,523)
Total	7,375	8,548
Banking
Carrying amount of goodwill
Goodwill	157,158	156,120
Commercial FHA origination and servicing
Carrying amount of goodwill
Goodwill	0	10,892
Wealth management
Carrying amount of goodwill
Goodwill	$ 4,746	$ 4,746

GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
2021	$ 5,675
2022	4,900
2023	4,125
2024	3,409
2025	2,659
Thereafter	7,614
Total	$ 28,382	$ 34,886

DERIVATIVE INSTRUMENTS - Interest Rate Lock Commitments and Forward Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional Amount	$ 354,353	$ 443,706
Fair Value Gain	2,217	3,350
Interest rate lock commitments
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional Amount	136,227	222,654
Fair Value Gain	2,217	3,350
Forward commitments to sell mortgage-backed securities
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional Amount	218,126	221,052
Notional amount, liability derivatives	33,240	0
Fair Value Gain	0	0
Fair value gain, liability derivatives	$ 309	$ 0

DERIVATIVE INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivative disclosures
Net gains (losses) recognized on derivative instruments	$ 1,400	$ 1,100	$ 2,000
Notional Amount	354,353	443,706
Stockholders' equity	621,391	661,911	$ 608,525	$ 449,545
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent
Derivative disclosures
Stockholders' equity	300
Other liabilities \| Cash Flow Hedging
Derivative disclosures
Derivative liability	400
Receive Variable, Pay Fixed Interest Rate Swaps \| Cash Flow Hedging
Derivative disclosures
Notional Amount	$ 100,000
Derivative asset average remaining maturity	5 years 3 months 18 days
Receive Variable, Pay Fixed Interest Rate Swaps \| Cash Flow Hedging \| Long
Derivative disclosures
Weighted average rate	0.57%
Receive Variable, Pay Fixed Interest Rate Swaps \| Cash Flow Hedging \| Short
Derivative disclosures
Weighted average rate	0.22%
Future Starting Receive Variable, Pay Fixed Interest Rate Swaps \| Cash Flow Hedging
Derivative disclosures
Notional Amount	$ 140,000
Interest rate swap contracts
Derivative disclosures
Notional amount of interest rate swaps	8,500	9,000
Interest rate swap contracts \| Other liabilities
Derivative disclosures
Fair value of liability derivatives	$ 800	$ 300

DEPOSITS - Summary of Classification of Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Classification of deposits
Noninterest-bearing demand	$ 1,469,579	$ 1,019,472
Interest-bearing:
Checking	1,568,888	1,342,788
Money market	785,871	787,662
Savings	597,966	522,456
Time	678,712	871,876
Total deposits	$ 5,101,016	$ 4,544,254

DEPOSITS - Narrative (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Time deposits $250,000 or more	$ 88,300,000	$ 122,700,000
Brokered certificate of deposit	22,800,000	49,700,000
Standby Letters of Credit
Amounts pledged for public deposits	0	80,000,000.0
Investment Securities
Amounts pledged for public deposits	$ 327,000,000.0	$ 234,100,000

DEPOSITS - Scheduled Maturities of Time Deposits (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Schedule of maturities of time deposits
2021	$ 540,932
2022	84,818
2023	31,779
2024	9,420
2025	11,711
Thereafter	52
Total	$ 678,712

SHORT-TERM BORROWINGS - Summary of Short-Term Borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Outstanding at period-end	$ 68,957	$ 82,029
Average amount outstanding	60,306	121,168
Maximum amount outstanding at any month end	$ 77,136	$ 138,907
Weighted average interest rate:
During period	0.30%	0.69%
End of period	0.12%	0.67%

SHORT-TERM BORROWINGS - Narrative (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Short-Term Borrowings
Investment securities pledged/collateralized for secured borrowings	$ 76,500,000	$ 87,400,000
Line of credit	0	0
Federal funds lines of credit	20,000,000.0
Payroll Protection Program Loans, Liquidity
Short-Term Borrowings
Federal funds lines of credit	184,400,000
Commercial Real Estate Loans
Short-Term Borrowings
Loans pledged as collateral	68,100,000	24,300,000
Federal Reserve Discount Window
Short-Term Borrowings
Line of credit	$ 54,400,000	$ 21,600,000

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

FHLB ADVANCES AND OTHER BORROWINGS - Summary of FHLB Advances (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 779,171	$ 493,311
Midland States Bancorp, Inc \| Series G Preferred Stock
FHLB ADVANCES AND OTHER BORROWINGS
Long term debt	$ 171	$ 181
Federal Home Loan Bank Advances, Interest Rate Information
Preferred stock, shares issued (in shares)	171	181
Preferred stock, par value (in USD per share)	$ 1,000	$ 1,000
Midland States Bank \| Fixed rate, fixed term maturing through May 2021
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 304,000	$ 28,130
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate	0.24%	2.56%
Midland States Bank \| Putable Fixed Rate Loan Maturing Through August 2021
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 475,000	$ 465,000
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate	2.01%	2.34%

FHLB ADVANCES AND OTHER BORROWINGS - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
FHLB ADVANCES AND OTHER BORROWINGS
FHLB advances, collateral for mortgage and home equity line of credit loans	$ 1,860	$ 1,940

FHLB ADVANCES AND OTHER BORROWINGS - Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract]
2021	$ 304,000
2022	0
2023	225,000
2024	70,000
2025	80,000
Thereafter	100,171
Total	$ 779,171	$ 493,311

SUBORDINATED DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2020	Dec. 31, 2019
Subordinated Borrowing [Line Items]
Carrying amount		$ 169,795	$ 176,653
6.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Fixed interest rate (as a percent)	6.00%	6.00%
Face amount	$ 40,300	$ 31,075	38,325
Carrying amount		$ 31,075	38,273
Effective interest rate (as a percent)		4.59%
6.00% Subordinated Debt \| LIBOR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)	4.35%	4.35%
6.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Fixed interest rate (as a percent)	6.50%	6.50%
Face amount	$ 15,000	$ 550
Carrying amount		$ 545	544
6.25% Subordinated Debt
Subordinated Borrowing [Line Items]
Fixed interest rate (as a percent)		6.25%
Face amount		$ 40,000
Carrying amount		$ 39,561	39,496
6.25% Subordinated Debt \| LIBOR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)		4.229%
5.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Fixed interest rate (as a percent)		5.00%
Face amount		$ 72,750
Carrying amount		$ 71,785	71,549
5.00% Subordinated Debt \| Three month SOFR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)		3.61%
5.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Fixed interest rate (as a percent)		5.50%
Face amount		$ 27,250
Carrying amount		$ 26,829	$ 26,791
5.50% Subordinated Debt \| Three month SOFR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)		4.045%

SUBORDINATED DEBT - Narrative (Details) $ in Thousands		1 Months Ended	3 Months Ended		12 Months Ended
SUBORDINATED DEBT - Narrative (Details) $ in Thousands	Sep. 20, 2019 USD ($) tranche	Jun. 30, 2015 USD ($) tranche	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2018 USD ($)	Oct. 13, 2017 USD ($)
Subordinated Borrowing [Line Items]
Number of tranches \| tranche	2	2
Subordinate debt
Subordinated Borrowing [Line Items]
Debt issuance costs	$ 1,600	$ 900					$ 600
6.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Face amount		$ 40,300		$ 38,325	$ 31,075
Fixed interest rate (as a percent)		6.00%			6.00%
Duration with fixed interest rate		5 years
Repurchase of debt			$ 7,300
Gain (loss) on repurchase of debt issuance			$ (200)	(1,400)
6.00% Subordinated Debt \| LIBOR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)		4.35%			4.35%
6.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Face amount		$ 15,000			$ 550
Fixed interest rate (as a percent)		6.50%			6.50%
6.25% Subordinated Debt
Subordinated Borrowing [Line Items]
Face amount					$ 40,000
Fixed interest rate (as a percent)					6.25%
Duration with fixed interest rate					5 years
6.25% Subordinated Debt \| LIBOR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)					4.229%
5.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Face amount					$ 72,750
Fixed interest rate (as a percent)					5.00%
Duration with fixed interest rate					5 years
5.00% Subordinated Debt \| Three month SOFR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)					3.61%
5.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Face amount					$ 27,250
Fixed interest rate (as a percent)					5.50%
Duration with fixed interest rate					10 years
5.50% Subordinated Debt \| Three month SOFR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)					4.045%
Subordinated Debt40325 Maturing June182025
Subordinated Borrowing [Line Items]
Face amount						$ 40,300
Repurchase of debt				2,000
Subordinated Debt15000 Maturing June182025
Subordinated Borrowing [Line Items]
Face amount						$ 15,000
Repurchase of debt				14,500
Gain (loss) on repurchase of debt issuance				$ (400)
Private Placement \| Subordinate debt
Subordinated Borrowing [Line Items]
Face amount	$ 100,000	$ 55,300					$ 40,000

TRUST PREFERRED DEBENTURES - Summary of Trust Preferred Debentures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2014	Jun. 05, 2013	Jun. 06, 2007	Nov. 30, 2006	Apr. 30, 2004	Mar. 26, 2004	Dec. 19, 2003
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 48,814	$ 48,288
Grant Park Trust
TRUST PREFERRED DEBENTURES
Book value of subordinated debentures				$ 3,100
LSHC Trust III
TRUST PREFERRED DEBENTURES
Book value of subordinated debentures			$ 41,200
Trust preferred debentures maturing April 23, 2034
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 10,276	$ 10,274
Trust preferred debentures maturing April 23, 2034 \| Midland Trust
TRUST PREFERRED DEBENTURES
Interest rate (as a percent)	2.96%	4.68%
Face amount								$ 10,300
Trust preferred debentures maturing April 23, 2034 \| LIBOR \| Midland Trust
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	2.75%
Trust preferred debentures maturing January 23, 2034
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 2,314	$ 2,263
Trust preferred debentures maturing January 23, 2034 \| Grant Park Trust
TRUST PREFERRED DEBENTURES
Interest rate (as a percent)	3.06%	4.79%
Face amount							$ 3,093		$ 3,100
Trust preferred debentures maturing January 23, 2034 \| LIBOR \| Grant Park Trust
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	2.85%
Trust preferred debentures maturing December 31, 2036
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 14,442	$ 14,251
Trust preferred debentures maturing December 31, 2036 \| LSHC Trust III
TRUST PREFERRED DEBENTURES
Interest rate (as a percent)	1.97%	3.64%
Face amount						$ 20,600	20,619
Trust preferred debentures maturing December 31, 2036 \| LIBOR \| LSHC Trust III
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	1.75%
Trust preferred debentures maturing September 6, 2037
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 13,621	$ 13,428
Trust preferred debentures maturing September 6, 2037 \| LSHC Trust IV
TRUST PREFERRED DEBENTURES
Interest rate (as a percent)	1.70%	3.36%
Face amount					$ 20,600		20,619
Trust preferred debentures maturing September 6, 2037 \| LIBOR \| LSHC Trust IV
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	1.47%
Trust Preferred Debentures Maturing June 17, 2034
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 8,161	$ 8,072
Trust Preferred Debentures Maturing June 17, 2034 \| Centrue Bank
TRUST PREFERRED DEBENTURES
Interest rate (as a percent)	2.88%	4.55%
Face amount							$ 10,310
Trust Preferred Debentures Maturing June 17, 2034 \| LIBOR \| Centrue Bank
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	2.65%

TRUST PREFERRED DEBENTURES - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 09, 2017	Dec. 31, 2014	Jun. 05, 2013	Jun. 06, 2007	Nov. 30, 2006	Apr. 30, 2004	Mar. 26, 2004	Dec. 19, 2003
Centrue
TRUST PREFERRED DEBENTURES
Liquidation amount per security (in USD per share)						$ 1,000
Book value of subordinated debentures	$ 10,300
Fair value of subordinated debentures	7,600
Number of preferred securities issued (in shares)						10,000
Midland Trust
TRUST PREFERRED DEBENTURES
Pool issued							$ 10,000
Liquidation amount per security (in USD per share)							$ 1,000
Midland Trust \| Other assets
TRUST PREFERRED DEBENTURES
Investment in common stock							$ 300
Midland Trust \| Trust preferred debentures maturing April 23, 2034
TRUST PREFERRED DEBENTURES
Face amount							$ 10,300
Midland Trust \| Trust preferred debentures maturing April 23, 2034 \| Centrue
TRUST PREFERRED DEBENTURES
Book value of subordinated debentures	$ 10,310
Grant Park Trust
TRUST PREFERRED DEBENTURES
Liquidation amount per security (in USD per share)								$ 1,000
Book value of subordinated debentures			$ 3,100
Fair value of subordinated debentures			$ 1,800
Number of preferred securities issued (in shares)								3,000
Grant Park Trust \| Other assets
TRUST PREFERRED DEBENTURES
Investment in common stock								$ 100
Grant Park Trust \| Trust preferred debentures maturing January 23, 2034
TRUST PREFERRED DEBENTURES
Face amount						$ 3,093		$ 3,100
LSHC Trust III
TRUST PREFERRED DEBENTURES
Liquidation amount per security (in USD per share)					$ 1,000
Book value of subordinated debentures		$ 41,200
Fair value of subordinated debentures		$ 26,100
Number of preferred securities issued (in shares)					20,000
LSHC Trust III \| Trust preferred debentures maturing December 31, 2036
TRUST PREFERRED DEBENTURES
Face amount					$ 20,600	20,619
LSHC Trust IV
TRUST PREFERRED DEBENTURES
Liquidation amount per security (in USD per share)				$ 1,000
Number of preferred securities issued (in shares)				20,000
LSHC Trust IV \| Other assets
TRUST PREFERRED DEBENTURES
Investment in common stock				$ 1,200
LSHC Trust IV \| Trust preferred debentures maturing September 6, 2037
TRUST PREFERRED DEBENTURES
Face amount				$ 20,600		20,619
Centrue Bank \| Other assets
TRUST PREFERRED DEBENTURES
Investment in common stock						$ 300

INCOME TAXES - Components of Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Federal:
Current									$ 10,924	$ 2,318	$ 55
Deferred									(3,852)	8,287	6,748
State:
Current									1,271	1,761	807
Deferred									1,134	4,321	3,774
Total income tax expense	$ 2,413	$ 3,184	$ 3,424	$ 456	$ 3,279	$ 4,015	$ 5,039	$ 4,354	$ 9,477	$ 16,687	$ 11,384

INCOME TAXES - Statutory federal rate (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Expected income taxes									$ 6,723	$ 15,218	$ 10,665
Less income tax effect of:
Tax exempt interest, net									(2,398)	(2,568)	(2,622)
State tax, net of federal benefit									1,900	4,805	4,028
Equity-based compensation benefit									239	(484)	(62)
Non-deductible transaction costs									0	110	71
Disposition of nondeductible goodwill									2,287	0	0
Valuation allowance									10	62	(409)
Other									716	(456)	(287)
Total income tax expense	$ 2,413	$ 3,184	$ 3,424	$ 456	$ 3,279	$ 4,015	$ 5,039	$ 4,354	$ 9,477	$ 16,687	$ 11,384

INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets:
Allowance for credit losses on loans	$ 16,622	$ 7,708
Deferred compensation	2,152	2,332
Loans	2,772	5,386
Tax credits	1,047	1,049
Net operating losses	11,231	15,510
Fair value adjustment on investments	1,067	1,217
Premises and equipment	433	0
Operating lease liabilities	3,289	4,227
Other, net	3,861	2,961
Deferred tax assets	42,474	40,390
Valuation allowance	(71)	(62)
Deferred tax assets, net of valuation allowance	42,403	40,328
Liabilities:
Premises and equipment	0	1,735
Unrealized gain on securities	4,169	2,846
Mortgage servicing rights	8,315	11,436
Fair value adjustment on trust preferred debentures	4,417	4,560
Deferred loan costs, net of fees	3,632	3,539
Intangible assets	6,921	8,380
Software development costs	1,522	1,638
Leased equipment	17,910	12,313
Operating lease right-of-use assets	2,524	3,912
Other, net	1,315	1,247
Deferred tax liabilities	50,725	51,606
Deferred tax liabilities, net	$ 8,322	$ 11,278

INCOME TAXES - Narrative (Details) - USD ($)	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Accumulation of prior year's earnings representing tax bad debt deductions	$ 3,100,000	$ 3,100,000
Operating Loss Carryforwards	11,231,000	15,510,000
Unrecognized tax benefits	0	0
Interest or penalties relative to unrecognized tax benefits	0	0
Valuation allowance	71,000	$ 62,000
Addition to valuation allowance	10,000.00
Federal
Operating Loss Carryforwards	51,000,000.0
Tax credit carryforward	1,600,000
State
Tax credit carryforward	$ 1,300,000
Period for tax credit carryforward.	5 years
State \| Illinois
Post-apportioned operating loss carryforward	$ 7,000,000.0
State \| Missouri
Pre-apportioned operating loss carryforward	$ 51,000,000.0

RETIREMENT PLANS (Details) - USD ($)		12 Months Ended
RETIREMENT PLANS (Details) - USD ($)	May 01, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Jul. 01, 2020
Defined Contribution Plan Disclosure [Line Items]
Employer's contribution, discretionary amount		$ 0	$ 0	$ 0
Employee's contribution, percentage of gross pay		100.00%
Employer's matching contribution, percentage		50.00%
Employer's matching contribution, percentage of employee compensation		6.00%
Total expense recorded		$ 1,700,000	1,700,000	1,800,000
Director \| Deferred compensation arrangement
Defined Contribution Plan Disclosure [Line Items]
Employer's matching contribution, percentage	25.00%
Deferred Compensation Arrangements [Abstract]
Deferred compensation arrangement, compensation expense		900,000	800,000	800,000
Deferred compensation arrangement, distributions		1,300,000	100,000	400,000
Former chief executive officer \| Deferred compensation arrangement
Deferred Compensation Arrangements [Abstract]
Deferred compensation arrangement, accrued liability		0	0	$ 300,000
Deferred compensation arrangement, supplement retirement paid		200,000	300,000
Deferred compensation arrangement, supplement retirement payments in 2020		200,000
Other postretirement benefit plan
Deferred Compensation Arrangements [Abstract]
Funded status of the plan (market value of assets divided by funding target)					117.60%
Defined benefit plan, minimum required contribution, administrative expense		200,000	100,000
Other liabilities \| Director \| Deferred compensation arrangement
Deferred Compensation Arrangements [Abstract]
Deferred compensation arrangement, accrued liability		$ 4,600,000	$ 5,000,000.0

SHARE-BASED COMPENSATION - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	May 03, 2019	Feb. 02, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation (in years)	2 years 8 months 12 days
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost that has been charged against income	$ 2,200,000	$ 2,000,000.0	$ 1,800,000
Granted during the year (in shares)	94,998	129,717
Vesting period (in years)	4 years
Total unrecognized compensation	$ 4,800,000
Weighted average grant date fair value for restricted stock awards	$ 14.85	$ 27.67	$ 28.47
Stock option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation (in years)	3 months
Aggregate intrinsic value of options outstanding	$ 200,000
Aggregate intrinsic value of options exercisable	200,000
Total unrecognized compensation	4,000
Total intrinsic value from options exercised	200,000	$ 3,600,000	$ 1,600,000
Cash received from options exercised	$ 700,000	$ 5,900,000	$ 1,800,000
2019 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)				1,000,000
2010 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)					2,000,000
2010 Incentive Plan \| Stock option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)					1,000,000

SHARE-BASED COMPENSATION - Restricted stock awards (Details) - Restricted stock and restricted stock unit awards	12 Months Ended
	Dec. 31, 2020 $ / shares shares
Number outstanding
Nonvested, beginning of year (in shares) \| shares	254,057
Granted during the year (in shares) \| shares	94,998
Vested during the year (in shares) \| shares	74,611
Forfeited during the year (in shares) \| shares	33,756
Nonvested, end of year (in shares) \| shares	240,688
Weighted average grant due fair value
Nonvested at December 31, 2018 (in dollars per shares) \| $ / shares	$ 28.24
Granted during the year (in dollars per shares) \| $ / shares	14.85
Vested during the year (in dollars per shares) \| $ / shares	28.42
Forfeited during the year (in dollars per shares) \| $ / shares	28.75
Nonvested at December 31, 2019 (in dollars per shares) \| $ / shares	$ 22.83

SHARE-BASED COMPENSATION - Stock option plan (Detail) - Stock option - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Number of shares
Options outstanding, beginning of year (in shares)	623,122	1,006,144
Options granted (in shares)	0	0	0
Options exercised (in shares)	(39,500)	(360,776)
Options forfeited (in shares)	(3,268)	(16,362)
Options expired (in shares)	(112,865)	(5,884)
Options outstanding, end of year (in shares)	467,489	623,122	1,006,144
Options exercisable (in shares)	463,590	586,081
Options vested and expected to vest (in shares)	467,060	619,032
Weighted average exercise price
Options outstanding, beginning of year (in dollars per share)	$ 20.83	$ 19.48
Options granted (in dollars per share)	0	0
Options exercised (in dollars per share)	17.90	16.46
Options forfeited (in dollars per share)	28.89	30.45
Options expired (in dollars per share)	19.26	31.30
Options outstanding, end of year (in dollars per share)	21.40	20.83	$ 19.48
Options exercisable (in dollars per share)	21.31	20.40
Options vested and expected to vest (in dollars per share)	$ 21.39	$ 20.79
Options outstanding, end of year (in years)	4 years 1 month 6 days	4 years 9 months 18 days
Options exercisable (in years)	4 years 1 month 6 days	4 years 7 months 6 days
Options vested and expected to vest (in years)	4 years 1 month 6 days	4 years 9 months 18 days

SHARE-BASED COMPENSATION - Nonvested stock option (Details) - Stock option - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Shares
Nonvested at December 31, 2019 (in shares)	37,041
Granted (in shares)	0	0	0
Vested (in shares)	(29,874)
Forfeited (in shares)	(3,268)
Nonvested at December 31, 2020 (in shares)	3,899	37,041
Weighted average grant date fair value
Nonvested at December 31, 2019 (in dollars per shares)	$ 3.26
Granted (in dollars per shares)	0
Vested (in dollars per shares)	3.09
Forfeited (in dollars per shares)	3.50
Nonvested at December 31, 2020 (in dollars per shares)	$ 4.33	$ 3.26

EARNINGS PER SHARE - Narrative (Details) - shares	12 Months Ended
EARNINGS PER SHARE - Narrative (Details) - shares	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Stock option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	364,272	91,097	31,259

EARNINGS PER SHARE - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share [Abstract]
Net income	$ 8,333	$ 86	$ 12,569	$ 1,549	$ 12,792	$ 12,655	$ 16,355	$ 13,982	$ 22,537	$ 55,784	$ 39,421
Preferred dividends declared									0	(191)	(330)
Preferred stock, premium amortization									0	145	189
Net income available to common shareholders					$ 12,792	$ 12,677	$ 16,321	$ 13,948	22,537	55,738	39,280
Common shareholder dividends									(24,699)	(23,389)	(19,838)
Unvested restricted stock award dividends									(259)	(210)	(139)
Undistributed earnings to unvested restricted stock awards									0	(267)	(123)
Undistributed earnings to common shareholders									(2,421)	31,872	19,180
Basic
Distributed earnings to common shareholders									24,699	23,389	19,838
Undistributed earnings to common shareholders									(2,421)	31,872	19,180
Total common shareholders earnings, basic									22,278	55,261	39,018
Diluted
Distributed earnings to common shareholders									24,699	23,389	19,838
Undistributed earnings to common shareholders									(2,421)	31,872	19,180
Total common shareholders earnings, diluted									22,278	55,261	39,018
Add back:
Undistributed earnings reallocated from unvested restricted stock awards									0	2	2
Total common shareholders earnings, diluted									$ 22,278	$ 55,263	$ 39,020
Weighted average common shares outstanding, basic (in shares)									23,336,881	24,288,793	23,130,475
Options (in shares)									9,245	204,638	418,550
Weighted average common shares outstanding, diluted (in shares)									23,346,126	24,493,431	23,549,025
Basic earnings per common share (in dollars per share)	$ 0.36	$ 0.00	$ 0.53	$ 0.06	$ 0.52	$ 0.51	$ 0.67	$ 0.58	$ 0.95	$ 2.28	$ 1.69
Diluted earnings per common share (in dollars per share)	$ 0.36	$ 0.00	$ 0.53	$ 0.06	$ 0.51	$ 0.51	$ 0.67	$ 0.57	$ 0.95	$ 2.26	$ 1.66

CAPITAL REQUIREMENTS - Narrative (Details)	Jan. 01, 2019	Dec. 31, 2020	Dec. 31, 2019
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common equity tier 1 capital (to risk-weighted assets): minimum required for adequate capital ratio		8.50%	7.00%
Minimum capital conservation buffer percentage	2.50%
Tier 1 capital to risk-weighted assets		7.00%	8.50%
Captial to risk-weighted assets		10.50%	10.50%
Tier 1 capital to adjusted average consolidated assets		4.00%	4.00%
Minimum
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common equity tier 1 capital (to risk-weighted assets): minimum required for adequate capital ratio	4.50%
Tier 1 capital to risk-weighted assets	6.00%
Captial to risk-weighted assets	8.00%
Tier 1 capital to adjusted average consolidated assets	4.00%

CAPITAL REQUIREMENTS - Actual and Required Capital Amounts and Ratios (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Capital requirements and restrictions on dividends
Total Capital (to Risk Weighted Assets): Actual Amount	$ 710,417	$ 772,572
Total Capital (to Risk Weighted Assets): Actual Ratio	13.24%	14.72%
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 563,610	$ 515,548
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio	10.50%	10.50%
Common Equity Tier 1 capital (to risk-weighted assets): Actual Amount	$ 494,043	$ 451,696
Common Equity Tier 1 capital (to risk-weighted assets): Actual Ratio	9.20%	9.20%
Common Equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Amount	$ 456,256	$ 343,699
Common equity tier 1 capital (to risk-weighted assets): minimum required for adequate capital ratio	8.50%	7.00%
Tier I Capital (to Risk Weighted Assets): Actual Amount	$ 429,092	$ 516,647
Tier I Capital (to Risk Weighted Assets): Actual Ratio	7.99%	10.52%
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 375,740	$ 417,348
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio	7.00%	8.50%
Tier I Capital (to Average Assets): Actual Amount	$ 494,043	$ 516,647
Tier I Capital (to Average Assets): Actual Ratio	7.50%	8.74%
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Amount	$ 263,651	$ 236,504
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Ratio	4.00%	4.00%
Midland States Bank
Capital requirements and restrictions on dividends
Total Capital (to Risk Weighted Assets): Actual Amount	$ 631,585	$ 648,291
Total Capital (to Risk Weighted Assets): Actual Ratio	11.77%	13.22%
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 563,420	$ 515,035
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio	10.50%	10.50%
Total Capital (to Risk Weighted Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements Amount	$ 536,591	$ 490,509
Total Capital (to Risk Weighted Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements Ratio	10.00%	10.00%
Common Equity Tier 1 capital (to risk-weighted assets): Actual Amount	$ 578,681	$ 619,019
Common Equity Tier 1 capital (to risk-weighted assets): Actual Ratio	10.78%	12.62%
Common Equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Amount	$ 456,102	$ 343,356
Common equity tier 1 capital (to risk-weighted assets): minimum required for adequate capital ratio	8.50%	7.00%
Common Equity Tier 1 capital (to risk-weighted assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements Amount	$ 429,273	$ 318,831
Common Equity Tier 1 capital (to risk-weighted assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements Ratio	8.00%	6.50%
Tier I Capital (to Risk Weighted Assets): Actual Amount	$ 578,681	$ 619,019
Tier I Capital (to Risk Weighted Assets): Actual Ratio	10.78%	12.62%
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 375,614	$ 416,933
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio	7.00%	8.50%
Tier I Capital (to Risk Weighted Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements Amount	$ 348,784	$ 392,407
Tier I Capital (to Risk Weighted Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements Ratio	6.50%	8.00%
Tier I Capital (to Average Assets): Actual Amount	$ 578,681	$ 619,019
Tier I Capital (to Average Assets): Actual Ratio	8.78%	10.48%
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Amount	$ 263,537	$ 236,214
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Ratio	4.00%	4.00%
Tier I Capital (to Average Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements Amount	$ 329,421	$ 295,267
Tier I Capital (to Average Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements Ratio	5.00%	5.00%

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring basis (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Assets and liabilities measured at fair value on a recurring basis:
Transfer of assets between level 1 to 2	$ 0	$ 0
Transfer of assets between level 2 to 1	0	0
Transfer of assets into level 3	0	0
Transfer of assets out of level 3	0	0
Assets
Investment securities available for sale:	676,711,000	649,433,000
Equity securities	9,424,000	5,621,000
Loans held for sale	138,090,000	16,431,000
Losses recognized on assets measured on non-recurring basis
Loan servicing rights	12,337,000	2,139,000	$ (449,000)
Mortgage servicing rights held for sale	1,692,000	(490,000)	458,000
Nonperforming loans	24,611,000	10,259,000	5,800,000
Other real estate owned	1,390,000	16,000	301,000
Assets held for sale	10,404,000	3,577,000	0
Total loss on assets measured on a nonrecurring basis	50,434,000	15,501,000	$ 6,110,000
U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale:	35,567,000	60,020,000
Mortgage-backed securities - non-agency
Assets
Investment securities available for sale:	20,744,000	17,148,000
State and municipal securities
Assets
Investment securities available for sale:	129,765,000	124,555,000
Corporate securities
Assets
Investment securities available for sale:	146,058,000	122,736,000
Recurring member
Assets
Investment securities available for sale:		5,621,000
Equity securities	9,424,000	16,431,000
Loans held for sale	138,090,000
Total	827,648,000	675,141,000
Liabilities
Forward commitments to sell mortgage-backed securities	309,000
Interest rate swap contracts	803,000
Total	1,112,000
Recurring member \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale:	35,567,000	60,020,000
Recurring member \| Mortgage-backed securities - agency
Assets
Investment securities available for sale:	344,577,000	324,974,000
Recurring member \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale:	20,744,000	17,148,000
Recurring member \| State and municipal securities
Assets
Investment securities available for sale:	129,765,000	124,555,000
Recurring member \| Corporate securities
Assets
Investment securities available for sale:	146,058,000	122,736,000
Recurring member \| Interest rate lock commitments
Assets
Loans held for sale		3,350,000
Derivative assets	2,217,000
Recurring member \| Interest rate swap contracts
Assets
Derivative assets	1,206,000	306,000
Liabilities
Interest rate swap contracts		306,000
Recurring member \| Level 1
Assets
Investment securities available for sale:		5,621,000
Equity securities	9,424,000	0
Loans held for sale	0
Total	9,424,000	5,621,000
Liabilities
Forward commitments to sell mortgage-backed securities	0
Interest rate swap contracts	0
Total	0
Recurring member \| Level 1 \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 1 \| Mortgage-backed securities - agency
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 1 \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 1 \| State and municipal securities
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 1 \| Corporate securities
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 1 \| Interest rate lock commitments
Assets
Loans held for sale		0
Derivative assets	0
Recurring member \| Level 1 \| Interest rate swap contracts
Assets
Derivative assets	0	0
Liabilities
Interest rate swap contracts		0
Recurring member \| Level 2
Assets
Investment securities available for sale:		0
Equity securities	0	16,431,000
Loans held for sale	138,090,000
Total	817,265,000	668,565,000
Liabilities
Forward commitments to sell mortgage-backed securities	309,000
Interest rate swap contracts	803,000
Total	1,112,000
Recurring member \| Level 2 \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale:	35,567,000	60,020,000
Recurring member \| Level 2 \| Mortgage-backed securities - agency
Assets
Investment securities available for sale:	344,577,000	324,974,000
Recurring member \| Level 2 \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale:	20,744,000	17,148,000
Recurring member \| Level 2 \| State and municipal securities
Assets
Investment securities available for sale:	129,765,000	124,555,000
Recurring member \| Level 2 \| Corporate securities
Assets
Investment securities available for sale:	145,099,000	121,781,000
Recurring member \| Level 2 \| Interest rate lock commitments
Assets
Loans held for sale		3,350,000
Derivative assets	2,217,000
Recurring member \| Level 2 \| Interest rate swap contracts
Assets
Derivative assets	1,206,000	306,000
Liabilities
Interest rate swap contracts		306,000
Recurring member \| Level 3
Assets
Investment securities available for sale:		0
Equity securities	0	0
Loans held for sale	0
Total	959,000	955,000
Liabilities
Forward commitments to sell mortgage-backed securities	0
Interest rate swap contracts	0
Total	0
Recurring member \| Level 3 \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 3 \| Mortgage-backed securities - agency
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 3 \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 3 \| State and municipal securities
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 3 \| Corporate securities
Assets
Investment securities available for sale:	959,000	955,000
Recurring member \| Level 3 \| Interest rate lock commitments
Assets
Loans held for sale		0
Derivative assets	0
Recurring member \| Level 3 \| Interest rate swap contracts
Assets
Derivative assets	0	0
Liabilities
Interest rate swap contracts		0
Non recurring member
Assets measured at fair value on a non-recurring basis:
Loan servicing rights	39,276,000	53,824,000
Mortgage servicing rights held for sale	878,000	1,972,000
Nonperforming loans	13,333,000	14,693,000
Other real estate owned	20,247,000
Assets held for sale	4,157,000	3,974,000
Non recurring member \| Level 1
Assets measured at fair value on a non-recurring basis:
Loan servicing rights	0	0
Mortgage servicing rights held for sale	0	0
Nonperforming loans	0	0
Other real estate owned	0
Assets held for sale	0	0
Non recurring member \| Level 2
Assets measured at fair value on a non-recurring basis:
Loan servicing rights	0	0
Mortgage servicing rights held for sale	0	0
Nonperforming loans	12,054,000	12,518,000
Other real estate owned	20,247,000
Assets held for sale	4,157,000	3,974,000
Non recurring member \| Level 3
Assets measured at fair value on a non-recurring basis:
Loan servicing rights	39,276,000	53,824,000
Mortgage servicing rights held for sale	878,000	1,972,000
Nonperforming loans	1,279,000	2,175,000
Other real estate owned	0
Assets held for sale	$ 0	$ 0

FAIR VALUE OF FINANCIAL INSTRUMENTS- Unobservable inputs (Level 3) (Details) - Corporate securities - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period	$ 955	$ 1,923
Total realized in earnings	8	52
Total unrealized in other comprehensive income	4	32
Net settlements (principal and interest)	(8)	(1,052)
Balance, end of period	$ 959	$ 955

FAIR VALUE OF FINANCIAL INSTRUMENTS- Quantitative Information (Details) $ in Thousands	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale:	$ 676,711	$ 649,433
Non recurring member
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	39,276	53,824
Nonperforming loans	13,333	14,693
Recurring member
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale:		5,621
Level 3 \| Non recurring member
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	39,276	53,824
Nonperforming loans	$ 1,279	$ 2,175
Level 3 \| Non recurring member \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Valuation technique for servicing asset	us-gaap:ValuationTechniqueDiscountedCashFlowMember	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Level 3 \| Non recurring member \| SBA servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Valuation technique for servicing asset	us-gaap:ValuationTechniqueDiscountedCashFlowMember	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Level 3 \| Non recurring member \| MSR held for sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Valuation technique for servicing asset	us-gaap:ValuationTechniqueDiscountedCashFlowMember	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Level 3 \| Non recurring member \| Impaired loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Valuation technique for servicing asset		us-gaap:ValuationTechniqueOptionPricingModelMember
Level 3 \| Non recurring member \| Discounted cash flow \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	$ 38,322	$ 52,693
Level 3 \| Non recurring member \| Discounted cash flow \| SBA servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	954	1,131
Level 3 \| Non recurring member \| Discounted cash flow \| MSR held for sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	878	1,972
Level 3 \| Non recurring member \| Fair value of collateral \| Impaired loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Nonperforming loans		2,175
Level 3 \| Recurring member
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale:		0
Level 3 \| Recurring member \| Net market price \| Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale:	$ 959	$ 955
Valuation technique	us-gaap:ValuationTechniqueConsensusPricingModelMember	us-gaap:ValuationTechniqueConsensusPricingModelMember
Minimum \| Level 3 \| Net market price \| Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	(0.020)	(0.020)
Minimum \| Level 3 \| Non recurring member \| Prepayment speed \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	8.00	8.00
Minimum \| Level 3 \| Non recurring member \| Prepayment speed \| SBA servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	12.01	8.31
Minimum \| Level 3 \| Non recurring member \| Prepayment speed \| MSR held for sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	14.40	8.64
Minimum \| Level 3 \| Non recurring member \| Discount rate \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	10.00	10.00
Minimum \| Level 3 \| Non recurring member \| Discount rate \| MSR held for sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	9.00	9.50
Minimum \| Level 3 \| Non recurring member \| Discount for type of property, age of appraisal and current status \| Impaired loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for impaired loans		4.32
Maximum \| Level 3 \| Net market price \| Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.049	0.025
Maximum \| Level 3 \| Non recurring member \| Prepayment speed \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	18.00	18.00
Maximum \| Level 3 \| Non recurring member \| Prepayment speed \| SBA servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	12.52	9.21
Maximum \| Level 3 \| Non recurring member \| Prepayment speed \| MSR held for sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	26.28	26.28
Maximum \| Level 3 \| Non recurring member \| Discount rate \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	27.00	14.00
Maximum \| Level 3 \| Non recurring member \| Discount rate \| MSR held for sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	11.50	12.50
Maximum \| Level 3 \| Non recurring member \| Discount for type of property, age of appraisal and current status \| Impaired loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for impaired loans		8.00
Weighted average \| Level 3 \| Net market price \| Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.020	0.015
Weighted average \| Level 3 \| Non recurring member \| Prepayment speed \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	8.18	8.20
Weighted average \| Level 3 \| Non recurring member \| Prepayment speed \| SBA servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	12.25	8.60
Weighted average \| Level 3 \| Non recurring member \| Prepayment speed \| MSR held for sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	20.34	12.42
Weighted average \| Level 3 \| Non recurring member \| Discount rate \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	11.48	11.02
Weighted average \| Level 3 \| Non recurring member \| Discount rate \| SBA servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	11.00	11.70
Weighted average \| Level 3 \| Non recurring member \| Discount rate \| MSR held for sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	10.13	10.75
Weighted average \| Level 3 \| Non recurring member \| Discount for type of property, age of appraisal and current status \| Impaired loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for impaired loans		5.22

FAIR VALUE OF FINANCIAL INSTRUMENTS- Fair value option and gains and losses from fair value changes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	$ 138,090	$ 16,431
Difference	810	652
Contractual principal	137,280	15,779
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	179	(382)	$ 258
Commercial Portfolio
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	126,123	8,236
Difference	67	206
Contractual principal	126,056	8,030
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	(139)	(389)	252
Residential Portfolio
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	11,967	8,195
Difference	743	446
Contractual principal	11,224	7,749
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	$ 318	$ 7	$ 6

FAIR VALUE OF FINANCIAL INSTRUMENTS- Carrying values and fair value (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets
Accrued interest receivable	$ 23,545	$ 16,346
Liabilities
Trust preferred debentures	48,814	48,288
Level 1
Assets
Cash and due from banks	337,080	210,780
Federal funds sold	4,560	2,920
Nonmarketable equity securities	0	0
Loans, net	0	0
Accrued interest receivable	0	0
Liabilities
Deposits	0	0
Short-term borrowings	0	0
FHLB and other borrowings	0	0
Subordinated debt	0	0
Trust preferred debentures	0	0
Level 2
Assets
Cash and due from banks	0	0
Federal funds sold	0	0
Nonmarketable equity securities	56,596	42,472
Loans, net		0
Accrued interest receivable	23,545	16,560
Liabilities
Deposits	5,108,360	4,069,098
Short-term borrowings	68,957	124,235
FHLB and other borrowings	807,493	641,050
Subordinated debt	176,504	91,926
Trust preferred debentures	50,165	56,805
Level 3
Assets
Cash and due from banks	0	0
Federal funds sold	0	0
Nonmarketable equity securities	0	0
Loans, net	5,006,223	4,091,438
Accrued interest receivable	0	0
Liabilities
Deposits	0	0
Short-term borrowings	0	0
FHLB and other borrowings	0	0
Subordinated debt	0	0
Trust preferred debentures	0	0
Carrying Amount
Assets
Cash and due from banks	337,080	210,780
Federal funds sold	4,560	2,920
Nonmarketable equity securities	56,596	42,472
Loans, net	5,042,888	4,116,648
Accrued interest receivable	23,545	16,560
Liabilities
Deposits	5,101,016	4,074,170
Short-term borrowings	68,957	124,235
FHLB and other borrowings	779,171	640,631
Subordinated debt	169,795	94,134
Trust preferred debentures	48,814	47,794
Fair Value
Assets
Cash and due from banks	337,080	210,780
Federal funds sold	4,560	2,920
Nonmarketable equity securities	56,596	42,472
Loans, net	5,006,223	4,091,438
Accrued interest receivable	23,545	16,560
Liabilities
Deposits	5,108,360	4,069,098
Short-term borrowings	68,957	124,235
FHLB and other borrowings	807,493	641,050
Subordinated debt	176,504	91,926
Trust preferred debentures	$ 50,165	$ 56,805

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Anticipated material loss	$ 0
Losses as a result of make whole requests and loan repurchases	0	$ 0	$ 10,000.00
Liability for unresolved repurchase demands	300,000	300,000
Commitments to extend credit
Loan commitments	894,212,000	725,506,000
Financial guarantees – standby letters of credit
Loan commitments	$ 15,889,000	$ 106,678,000

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Net interest income (expense)	$ 53,516	$ 49,980	$ 48,989	$ 46,651	$ 48,687	$ 49,450	$ 46,077	$ 45,601	$ 199,136	$ 189,815	$ 180,087
Provision for credit losses	10,058	11,728	10,997	11,578	5,305	4,361	4,076	3,243	44,361	16,985	9,430
Noninterest income	14,336	18,919	19,396	8,598	19,014	19,606	19,587	17,075	61,249	75,282	71,791
Noninterest expense	47,048	53,901	41,395	41,666	46,325	48,025	40,194	41,097	184,010	175,641	191,643
Income before income taxes	10,746	3,270	15,993	2,005	16,071	16,670	21,394	18,336	32,014	72,471	50,805
Income taxes (benefit)	2,413	3,184	3,424	456	3,279	4,015	5,039	4,354	9,477	16,687	11,384
Net income (loss)	8,333	$ 86	$ 12,569	$ 1,549	12,792	$ 12,655	$ 16,355	$ 13,982	22,537	55,784	39,421
Total assets	6,868,540				6,087,017				6,868,540	6,087,017	5,637,673
Banking
Segment Reporting Information [Line Items]
Net interest income (expense)									211,120	201,534	190,461
Provision for credit losses									44,361	16,985	9,430
Noninterest income									38,706	53,683	51,769
Noninterest expense									170,025	160,364	179,989
Income before income taxes									35,440	77,868	52,811
Income taxes (benefit)									10,020	18,195	11,558
Net income (loss)									25,420	59,673	41,253
Total assets	6,985,011				6,086,947				6,985,011	6,086,947	5,657,179
Wealth management
Segment Reporting Information [Line Items]
Net interest income (expense)									0	0	298
Provision for credit losses									0	0	0
Noninterest income									22,802	21,832	20,484
Noninterest expense									14,938	14,850	12,492
Income before income taxes									7,864	6,982	8,290
Income taxes (benefit)									2,194	1,850	2,130
Net income (loss)									5,670	5,132	6,160
Total assets	27,313				26,015				27,313	26,015	23,899
Commercial FHA origination and servicing
Segment Reporting Information [Line Items]
Net interest income (expense)										1,600
Total assets					91,500					91,500
Other
Segment Reporting Information [Line Items]
Net interest income (expense)									(11,984)	(11,719)	(10,672)
Provision for credit losses									0	0	0
Noninterest income									(259)	(233)	(462)
Noninterest expense									(953)	427	(838)
Income before income taxes									(11,290)	(12,379)	(10,296)
Income taxes (benefit)									(2,737)	(3,358)	(2,304)
Net income (loss)									(8,553)	(9,021)	(7,992)
Total assets	$ (143,784)				$ (25,945)				$ (143,784)	$ (25,945)	$ (43,405)

RELATED PARTY TRANSACTIONS (Details) - USD ($)	12 Months Ended
RELATED PARTY TRANSACTIONS (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Related Party Operating Lease
Related Party Transaction [Line Items]
Rent paid	$ 100,000	$ 100,000	$ 42,000
Chairman
Related Party Transaction [Line Items]
Payments to related party	$ 0	$ 600,000	$ 400,000

REVENUE FROM CONTRACT WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Noninterest income - out-of-scope of Topic 606									$ 13,036
Total noninterest income	$ 14,336	$ 18,919	$ 19,396	$ 8,598	$ 19,014	$ 19,606	$ 19,587	$ 17,075	61,249	$ 75,282	$ 71,791
Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - out-of-scope of Topic 606										25,450	25,579
Total noninterest income										75,282	71,791
Trust management/administration fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									16,953
Trust management/administration fees \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										16,114	16,099
Investment advisory fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									2,009
Investment advisory fees \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										2,171	2,041
Investment brokerage fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									1,465
Investment brokerage fees \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										1,165	1,065
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									2,375
Other \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										2,382	1,308
Nonsufficient fund fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									5,589
Nonsufficient fund fees \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										7,721	7,672
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									3,014
Other \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										3,306	2,768
Interchange revenues
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									12,266
Interchange revenues \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										11,992	10,674
Merchant services revenue
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									1,381
Merchant services revenue \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										1,506	1,650
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606									$ 3,161
Other \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606										$ 3,475	$ 2,935

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Other assets	$ 100,532	$ 71,879
Total assets	6,868,540	6,087,017	$ 5,637,673
Liabilities:
Subordinated debt	169,795	176,653
Trust preferred debentures	48,814	48,288
Other liabilities	67,438	65,202
Total liabilities	6,247,149	5,425,106
Stockholders' equity	621,391	661,911	$ 608,525	$ 449,545
Total liabilities and shareholders’ equity	6,868,540	6,087,017
Midland States Bancorp, Inc
Assets
Cash	58,904	52,673
Investment in common stock of subsidiaries	772,758	832,681
Other assets	11,317	4,934
Total assets	842,979	890,288
Liabilities:
Subordinated debt	169,795	176,653
Trust preferred debentures	48,814	48,288
Other borrowings	171	181
Other liabilities	2,808	3,255
Total liabilities	221,588	228,377
Stockholders' equity	621,391	661,911
Total liabilities and shareholders’ equity	$ 842,979	$ 890,288

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Condensed Statements of Income
Interest expense	$ (9,196)	$ (10,334)	$ (11,559)	$ (14,663)	$ (15,757)	$ (15,556)	$ (14,559)	$ (13,831)	$ (45,752)	$ (59,703)	$ (43,280)
Income before income taxes	10,746	3,270	15,993	2,005	16,071	16,670	21,394	18,336	32,014	72,471	50,805
Income tax benefit	(2,413)	(3,184)	(3,424)	(456)	(3,279)	(4,015)	(5,039)	(4,354)	(9,477)	(16,687)	(11,384)
Net income	$ 8,333	$ 86	$ 12,569	$ 1,549	$ 12,792	$ 12,655	$ 16,355	$ 13,982	22,537	55,784	39,421
Midland States Bancorp, Inc
Condensed Statements of Income
Dividends from subsidiaries									89,890	43,900	17,000
Other income									0	0	6
Interest expense									(12,054)	(11,798)	(10,714)
Other expense									(1,309)	(2,753)	(1,180)
Income before income taxes									76,527	29,349	5,112
Income tax benefit									2,749	3,371	2,312
Income before equity in undistributed (loss) income of subsidiaries									79,276	32,720	7,424
Equity in undistributed (loss) income of subsidiaries									(56,739)	23,064	31,997
Net income									$ 22,537	$ 55,784	$ 39,421

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income	$ 8,333	$ 86	$ 12,569	$ 1,549	$ 12,792	$ 12,655	$ 16,355	$ 13,982	$ 22,537	$ 55,784	$ 39,421
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense									2,175	2,364	1,533
Change in other assets									(31,961)	(4,701)	(5,745)
Change in other liabilities									4,750	13,202	16,090
Net cash provided by operating activities									499,147	538,653	97,093
Cash flows from investing activities:
Net cash used in investing activities									(1,312,433)	(364,788)	(6,694)
Cash flows from financing activities:
Proceeds from issuance of subordinated debt, net of issuance costs									0	98,265	0
Payments made on subordinated debt									(7,443)	(19,543)	0
Subordinated debt prepayment fees									193	1,778	0
Common stock repurchased									(39,615)	(4,019)	0
Redemption of preferred stock									(10)	(2,636)	0
Cash dividends paid on common stock									(24,958)	(23,599)	(19,977)
Cash dividends paid on preferred stock									0	(191)	(330)
Proceeds from issuance of common stock under employee benefit plans									2,524	5,794	2,278
Net cash provided by (used in) financing activities									760,421	6,940	(91,901)
Net (decrease) increase in cash and cash equivalents									(52,865)	180,805	(1,502)
Cash and cash equivalents:
Beginning of period				394,505					394,505
End of period	341,640				394,505				341,640	394,505
Midland States Bancorp, Inc
Cash flows from operating activities:
Net income									22,537	55,784	39,421
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed loss (income) of subsidiaries									56,739	(23,064)	(31,997)
Share-based compensation expense									2,175	2,364	1,533
Change in other assets									(6,382)	(2,604)	3,273
Change in other liabilities									471	1,528	2,863
Net cash provided by operating activities									75,540	34,008	15,093
Cash flows from investing activities:
Net cash paid in acquisition									0	(1,021)	(32,890)
Net cash used in investing activities									0	(1,021)	(32,890)
Cash flows from financing activities:
Proceeds from issuance of subordinated debt, net of issuance costs									0	98,265	0
Payments made on subordinated debt									(7,443)	(19,543)	0
Payments made on other borrowings									0	(56,475)	(4,286)
Common stock repurchased									(39,615)	(4,019)	0
Cash dividends paid on common stock									(24,958)	(23,599)	(19,977)
Cash dividends paid on preferred stock									0	(191)	(330)
Proceeds from issuance of common stock under employee benefit plans									2,524	5,794	2,278
Net cash provided by (used in) financing activities									(69,309)	(626)	(22,315)
Net (decrease) increase in cash and cash equivalents									6,231	32,361	(40,112)
Cash and cash equivalents:
Beginning of period				$ 52,673				$ 20,312	52,673	20,312	60,424
End of period	$ 58,904				$ 52,673				58,904	52,673	20,312
Midland States Bancorp, Inc \| Series G Preferred Stock
Cash flows from financing activities:
Redemption of preferred stock									(10)	0	0
Midland States Bancorp, Inc \| Series H preferred stock
Cash flows from financing activities:
Redemption of preferred stock									$ 0	$ (2,636)	$ 0

QUARTERLY CONDENSED FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Interest income	$ 62,712	$ 60,314	$ 60,548	$ 61,314	$ 64,444	$ 65,006	$ 60,636	$ 59,432	$ 244,888	$ 249,518	$ 223,367
Interest expense	9,196	10,334	11,559	14,663	15,757	15,556	14,559	13,831	45,752	59,703	43,280
Net interest income	53,516	49,980	48,989	46,651	48,687	49,450	46,077	45,601	199,136	189,815	180,087
Provision for credit losses	10,058	11,728	10,997	11,578	5,305	4,361	4,076	3,243	44,361	16,985	9,430
Net interest income after provision for credit losses	43,458	38,252	37,992	35,073	43,382	45,089	42,001	42,358	154,775	172,830	170,657
Noninterest income	14,336	18,919	19,396	8,598	19,014	19,606	19,587	17,075	61,249	75,282	71,791
Noninterest expense	47,048	53,901	41,395	41,666	46,325	48,025	40,194	41,097	184,010	175,641	191,643
Income before income taxes	10,746	3,270	15,993	2,005	16,071	16,670	21,394	18,336	32,014	72,471	50,805
Income taxes	2,413	3,184	3,424	456	3,279	4,015	5,039	4,354	9,477	16,687	11,384
Net income	$ 8,333	$ 86	$ 12,569	$ 1,549	12,792	12,655	16,355	13,982	22,537	55,784	39,421
Preferred stock dividends and premium amortization					0	(22)	34	34	0	46	141
Net income available to common shareholders					$ 12,792	$ 12,677	$ 16,321	$ 13,948	$ 22,537	$ 55,738	$ 39,280
Per common share data:
Basic earnings per common share (in dollars per share)	$ 0.36	$ 0.00	$ 0.53	$ 0.06	$ 0.52	$ 0.51	$ 0.67	$ 0.58	$ 0.95	$ 2.28	$ 1.69
Diluted earnings per common share (in dollars per share)	$ 0.36	$ 0.00	$ 0.53	$ 0.06	$ 0.51	$ 0.51	$ 0.67	$ 0.57	$ 0.95	$ 2.26	$ 1.66

SUBSEQUENT EVENTS (Details) $ in Thousands	Feb. 10, 2021 USD ($) professional	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Subsequent Event [Line Items]
Increase in assets		$ 6,868,540	$ 6,087,017	$ 5,637,673
ATG Trust \| Subsequent Event
Subsequent Event [Line Items]
Fair value of assets acquired	$ 387,000
Annual revenue	3,500
Wealth management
Subsequent Event [Line Items]
Increase in assets		$ 27,313	$ 26,015	$ 23,899
Wealth management \| ATG Trust \| Subsequent Event
Subsequent Event [Line Items]
Increase in assets	$ 3,800,000
Number of financial professionals \| professional	90

LOANS - Aging Status of recorded investment (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Aging Status of Recorded Investment
Past Due	$ 33,001
Nonaccrual loans	49,628	$ 38,401
Current loans	5,020,702
Total loans	5,103,331	4,401,410
Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		30,239
Nonaccrual loans		38,401
Current loans		4,290,059
Total loans		4,358,699
30-59 days past due
Aging Status of Recorded Investment
Past Due	23,714
30-59 days past due \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		19,416
60-89 days past due
Aging Status of Recorded Investment
Past Due	7,746
60-89 days past due \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		10,460
Past due 90 days or more
Aging Status of Recorded Investment
Past Due	1,541
Past due 90 days or more \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		363
Commercial Portfolio
Aging Status of Recorded Investment
Past Due	18,973
Nonaccrual loans	35,359	28,889
Current loans	3,329,953
Total loans	3,384,285	2,790,422
Commercial Portfolio \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Total loans		2,649,828
Commercial Portfolio \| 30-59 days past due
Aging Status of Recorded Investment
Past Due	14,149
Commercial Portfolio \| 60-89 days past due
Aging Status of Recorded Investment
Past Due	3,928
Commercial Portfolio \| Past due 90 days or more
Aging Status of Recorded Investment
Past Due	896
Commercial Portfolio \| Commercial and Commercial Other
Aging Status of Recorded Investment
Total loans		1,055,185
Commercial Portfolio \| Commercial and Commercial Other \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		8,996
Nonaccrual loans		5,843
Current loans		1,037,268
Total loans		1,052,107
Commercial Portfolio \| Commercial and Commercial Other \| 30-59 days past due \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		5,910
Commercial Portfolio \| Commercial and Commercial Other \| 60-89 days past due \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		3,086
Commercial Portfolio \| Commercial and Commercial Other \| Past due 90 days or more \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		0
Commercial Portfolio \| Commercial Loans
Aging Status of Recorded Investment
Past Due	416
Nonaccrual loans	3,498	1,492
Current loans	933,468
Total loans	937,382	628,056
Commercial Portfolio \| Commercial Loans \| 30-59 days past due
Aging Status of Recorded Investment
Past Due	389
Commercial Portfolio \| Commercial Loans \| 60-89 days past due
Aging Status of Recorded Investment
Past Due	27
Commercial Portfolio \| Commercial Loans \| Past due 90 days or more
Aging Status of Recorded Investment
Past Due	0
Commercial Portfolio \| Commercial other
Aging Status of Recorded Investment
Past Due	8,804
Nonaccrual loans	2,634	4,351
Current loans	736,755
Total loans	748,193	427,129
Commercial Portfolio \| Commercial other \| 30-59 days past due
Aging Status of Recorded Investment
Past Due	4,007
Commercial Portfolio \| Commercial other \| 60-89 days past due
Aging Status of Recorded Investment
Past Due	3,901
Commercial Portfolio \| Commercial other \| Past due 90 days or more
Aging Status of Recorded Investment
Past Due	896
Commercial Portfolio \| Commercial real estate non-owner occupied
Aging Status of Recorded Investment
Past Due	6,684
Nonaccrual loans	9,332	10,915
Current loans	855,435
Total loans	871,451	825,874
Commercial Portfolio \| Commercial real estate non-owner occupied \| 30-59 days past due
Aging Status of Recorded Investment
Past Due	6,684
Commercial Portfolio \| Commercial real estate non-owner occupied \| 60-89 days past due
Aging Status of Recorded Investment
Past Due	0
Commercial Portfolio \| Commercial real estate non-owner occupied \| Past due 90 days or more
Aging Status of Recorded Investment
Past Due	0
Commercial Portfolio \| Commercial real estate owner occupied
Aging Status of Recorded Investment
Past Due	2,145
Nonaccrual loans	6,825	4,396
Current loans	414,287
Total loans	423,257	464,601
Commercial Portfolio \| Commercial real estate owner occupied \| 30-59 days past due
Aging Status of Recorded Investment
Past Due	2,145
Commercial Portfolio \| Commercial real estate owner occupied \| 60-89 days past due
Aging Status of Recorded Investment
Past Due	0
Commercial Portfolio \| Commercial real estate owner occupied \| Past due 90 days or more
Aging Status of Recorded Investment
Past Due	0
Commercial Portfolio \| Commercial Real Estate Loans
Aging Status of Recorded Investment
Total loans		1,526,504
Commercial Portfolio \| Commercial Real Estate Loans \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		3,294
Nonaccrual loans		21,742
Current loans		1,481,361
Total loans		1,506,397
Commercial Portfolio \| Commercial Real Estate Loans \| 30-59 days past due \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		2,895
Commercial Portfolio \| Commercial Real Estate Loans \| 60-89 days past due \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		399
Commercial Portfolio \| Commercial Real Estate Loans \| Past due 90 days or more \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		0
Commercial Portfolio \| Multi-family
Aging Status of Recorded Investment
Past Due	61
Nonaccrual loans	10,246	6,231
Current loans	141,227
Total loans	151,534	146,795
Commercial Portfolio \| Multi-family \| 30-59 days past due
Aging Status of Recorded Investment
Past Due	61
Commercial Portfolio \| Multi-family \| 60-89 days past due
Aging Status of Recorded Investment
Past Due	0
Commercial Portfolio \| Multi-family \| Past due 90 days or more
Aging Status of Recorded Investment
Past Due	0
Commercial Portfolio \| Farmland
Aging Status of Recorded Investment
Past Due	0
Nonaccrual loans	0	200
Current loans	79,731
Total loans	79,731	89,234
Commercial Portfolio \| Farmland \| 30-59 days past due
Aging Status of Recorded Investment
Past Due	0
Commercial Portfolio \| Farmland \| 60-89 days past due
Aging Status of Recorded Investment
Past Due	0
Commercial Portfolio \| Farmland \| Past due 90 days or more
Aging Status of Recorded Investment
Past Due	0
Commercial Portfolio \| Construction And Land Development Loans
Aging Status of Recorded Investment
Past Due	863
Nonaccrual loans	2,824	1,304
Current loans	169,050
Total loans	172,737	208,733
Commercial Portfolio \| Construction And Land Development Loans \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		1,611
Nonaccrual loans		1,304
Current loans		200,141
Total loans		203,056
Commercial Portfolio \| Construction And Land Development Loans \| 30-59 days past due
Aging Status of Recorded Investment
Past Due	863
Commercial Portfolio \| Construction And Land Development Loans \| 30-59 days past due \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		1,539
Commercial Portfolio \| Construction And Land Development Loans \| 60-89 days past due
Aging Status of Recorded Investment
Past Due	0
Commercial Portfolio \| Construction And Land Development Loans \| 60-89 days past due \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		72
Commercial Portfolio \| Construction And Land Development Loans \| Past due 90 days or more
Aging Status of Recorded Investment
Past Due	0
Commercial Portfolio \| Construction And Land Development Loans \| Past due 90 days or more \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		0
Residential Portfolio \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Total loans		555,654
Residential Portfolio \| Residential Real Estate Loans
Aging Status of Recorded Investment
Total loans		568,291
Residential Portfolio \| Residential Real Estate Loans \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		2,294
Nonaccrual loans		7,796
Current loans		545,564
Total loans		555,654
Residential Portfolio \| Residential Real Estate Loans \| 30-59 days past due \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		588
Residential Portfolio \| Residential Real Estate Loans \| 60-89 days past due \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		1,561
Residential Portfolio \| Residential Real Estate Loans \| Past due 90 days or more \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		145
Residential Portfolio \| Residential first lien
Aging Status of Recorded Investment
Past Due	334
Nonaccrual loans	9,605	6,140
Current loans	348,390
Total loans	358,329	456,107
Residential Portfolio \| Residential first lien \| 30-59 days past due
Aging Status of Recorded Investment
Past Due	127
Residential Portfolio \| Residential first lien \| 60-89 days past due
Aging Status of Recorded Investment
Past Due	207
Residential Portfolio \| Residential first lien \| Past due 90 days or more
Aging Status of Recorded Investment
Past Due	0
Residential Portfolio \| Other residential
Aging Status of Recorded Investment
Past Due	375
Nonaccrual loans	2,437	1,656
Current loans	81,739
Total loans	84,551	112,184
Residential Portfolio \| Other residential \| 30-59 days past due
Aging Status of Recorded Investment
Past Due	240
Residential Portfolio \| Other residential \| 60-89 days past due
Aging Status of Recorded Investment
Past Due	135
Residential Portfolio \| Other residential \| Past due 90 days or more
Aging Status of Recorded Investment
Past Due	0
Consumer Portfolio
Aging Status of Recorded Investment
Total loans		710,116
Consumer Portfolio \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Total loans		708,904
Consumer Portfolio \| Consumer Loans
Aging Status of Recorded Investment
Past Due	382
Nonaccrual loans	262	341
Current loans	79,998
Total loans	80,642	100,732
Consumer Portfolio \| Consumer Loans \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		10,855
Nonaccrual loans		341
Current loans		697,708
Total loans		708,904
Consumer Portfolio \| Consumer Loans \| 30-59 days past due
Aging Status of Recorded Investment
Past Due	325
Consumer Portfolio \| Consumer Loans \| 30-59 days past due \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		6,701
Consumer Portfolio \| Consumer Loans \| 60-89 days past due
Aging Status of Recorded Investment
Past Due	57
Consumer Portfolio \| Consumer Loans \| 60-89 days past due \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		4,154
Consumer Portfolio \| Consumer Loans \| Past due 90 days or more
Aging Status of Recorded Investment
Past Due	0
Consumer Portfolio \| Consumer Loans \| Past due 90 days or more \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		0
Consumer Portfolio \| Consumer other
Aging Status of Recorded Investment
Past Due	7,208
Nonaccrual loans	0	0
Current loans	778,252
Total loans	785,460	609,384
Consumer Portfolio \| Consumer other \| 30-59 days past due
Aging Status of Recorded Investment
Past Due	4,334
Consumer Portfolio \| Consumer other \| 60-89 days past due
Aging Status of Recorded Investment
Past Due	2,874
Consumer Portfolio \| Consumer other \| Past due 90 days or more
Aging Status of Recorded Investment
Past Due	0
Finance Leases Portfolio
Aging Status of Recorded Investment
Past Due	5,729
Nonaccrual loans	1,965	1,375
Current loans	402,370
Total loans	410,064	332,581
Finance Leases Portfolio \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		3,189
Nonaccrual loans		1,375
Current loans		328,017
Total loans		332,581
Finance Leases Portfolio \| 30-59 days past due
Aging Status of Recorded Investment
Past Due	4,539
Finance Leases Portfolio \| 30-59 days past due \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		1,783
Finance Leases Portfolio \| 60-89 days past due
Aging Status of Recorded Investment
Past Due	545
Finance Leases Portfolio \| 60-89 days past due \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		1,188
Finance Leases Portfolio \| Past due 90 days or more
Aging Status of Recorded Investment
Past Due	$ 645
Finance Leases Portfolio \| Past due 90 days or more \| Receivables Excluding Acquired With Deteriorated Credit Quality
Aging Status of Recorded Investment
Past Due		$ 218