0001466026-21-000010 | 10-Q | XBRL Viewer | Midland States Bancorp INC

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FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying values and fair value (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Assets
Accrued interest receivable	$ 22,623	$ 23,545
Liabilities
Trust preferred debentures	49,094	48,814
Level 1
Assets
Cash and due from banks	418,782	337,080
Federal funds sold	6,318	4,560
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
Loans, net	0	0
Accrued interest receivable	22,623	23,545
Liabilities
Deposits	5,201,056	5,108,360
Short-term borrowings	75,985	68,957
FHLB and other borrowings	456,971	807,493
Subordinated debt	148,763	176,504
Trust preferred debentures	54,984	50,165
Level 3
Assets
Cash and due from banks	0	0
Federal funds sold	0	0
Loans, net	4,878,116	5,006,223
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 value
Assets
Cash and due from banks	418,782	337,080
Federal funds sold	6,318	4,560
Loans, net	4,777,202	5,042,888
Accrued interest receivable	22,623	23,545
Liabilities
Deposits	5,196,351	5,101,016
Short-term borrowings	75,985	68,957
FHLB and other borrowings	440,171	779,171
Subordinated debt	138,906	169,795
Trust preferred debentures	49,094	48,814
Fair value
Assets
Cash and due from banks	418,782	337,080
Federal funds sold	6,318	4,560
Loans, net	4,878,116	5,006,223
Accrued interest receivable	22,623	23,545
Liabilities
Deposits	5,201,056	5,108,360
Short-term borrowings	75,985	68,957
FHLB and other borrowings	456,971	807,493
Subordinated debt	148,763	176,504
Trust preferred debentures	$ 54,984	$ 50,165

EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2021

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 both the three and six months ended June 30, 2021 excluded antidilutive stock options of 71,547 and excluded antidilutive stock options of 580,912 and 319,335 for the comparable periods in 2020, respectively, because the exercise prices of these stock options exceeded the average market prices of the Company’s common shares for those respective periods. Presented

below are the calculations for basic and diluted earnings per common share for the three and six months ended June 30, 2021 and 2020:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands, except per share data)	2021		2020		2021		2020
Net income	$	20,124	$	12,569	$	38,662	$	14,118



Common shareholder dividends	(6,265)		(6,175)		(12,502)		(12,685)
Unvested restricted stock award dividends	(62)		(65)		(126)		(130)
Undistributed earnings to unvested restricted stock awards	(134)		(65)		(259)		(14)
Undistributed earnings to common shareholders	$	13,663	$	6,264	$	25,775	$	1,289
Basic
Distributed earnings to common shareholders	$	6,265	$	6,175	$	12,502	$	12,685
Undistributed earnings to common shareholders	13,663		6,264		25,775		1,289
Total common shareholders earnings, basic	$	19,928	$	12,439	$	38,277	$	13,974
Diluted
Distributed earnings to common shareholders	$	6,265	$	6,175	$	12,502	$	12,685
Undistributed earnings to common shareholders	13,663		6,264		25,775		1,289
Total common shareholders earnings	19,928		12,439		38,277		13,974
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	—		—		1		—
Total common shareholders earnings, diluted	$	19,928	$	12,439	$	38,278	$	13,974
Weighted average common shares outstanding, basic	22,591,127		23,338,890		22,557,728		23,886,215
Options	86,388		1,074		75,312		36,673
Weighted average common shares outstanding, diluted	22,677,515		23,339,964		22,633,040		23,922,888
Basic earnings per common share	$	0.88	$	0.53	$	1.70	$	0.59
Diluted earnings per common share	0.88		0.53		1.69		0.58

ACQUISITIONS AND DISPOSITIONS - Assets Acquired and Liabilities Assumed (Details) - ATG Trust $ in Thousands	Jun. 01, 2021 USD ($)
Business Acquisition
Intangible assets	$ 2,503
Other assets	614
Total assets acquired and consideration paid	3,117
Total liabilities assumed	320
Net assets acquired and consideration paid	$ 2,797
Estimated useful life	6 years

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value option and gains and losses from fair value changes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	$ 12,187		$ 12,187		$ 138,090
Difference	717		717		810
Contractual principal	11,470		11,470		137,280
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	297	$ 690	(130)	$ 787
Commercial Loan Portfolio
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	0		0		126,123
Difference	0		0		67
Contractual principal	0		0		126,056
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	(23)	276	(67)	118
Residential Portfolio Segment
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	12,187		12,187		11,967
Difference	717		717		743
Contractual principal	11,470		11,470		$ 11,224
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	$ 320	$ 414	$ (63)	$ 669

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Total noninterest income	$ 17,417	$ 19,396	$ 32,233	$ 27,994
Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - out-of-scope of Topic 606	3,361	7,746	5,917	3,889
Total noninterest income	17,417	19,396	32,233	27,994
Trust management/administration fees \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	4,971	4,273	9,430	8,482
Investment advisory fees \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	423	495	876	1,024
Investment brokerage fees \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	485	317	886	712
Other \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	650	613	1,268	1,157
Nonsufficient fund fees \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	1,202	961	2,343	2,827
Other \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	714	745	1,399	1,535
Interchange revenues \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	3,797	3,013	7,172	5,846
Merchant services revenue \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	396	304	733	655
Other \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	$ 1,418	$ 929	$ 2,209	$ 1,867

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables)

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Loan Commitments

The commitments are principally tied to variable rates. Loan commitments as of June 30, 2021 and December 31, 2020 were as follows:


(dollars in thousands)	June 30, 2021		December 31, 2020
Commitments to extend credit	$	897,556	$	894,212
Financial guarantees – standby letters of credit	13,637		15,889

FHLB ADVANCES AND OTHER BORROWINGS

6 Months Ended

Jun. 30, 2021

FHLB ADVANCES AND OTHER BORROWINGS

FHLB ADVANCES AND OTHER BORROWINGS

The following table summarizes our FHLB advances and other borrowings as of June 30, 2021 and December 31, 2020:


(dollars in thousands)	June 30, 2021		December 31, 2020
Midland States Bancorp, Inc.
Series G redeemable preferred stock - 171 shares at $1,000 per share	$	171	$	171
Midland States Bank
FHLB advances – fixed rate, fixed term at rates averaging 0.22% and 0.24% at June 30, 2021 and December 31, 2020, respectively – maturing through July 2021	50,000		304,000
FHLB advances – putable fixed rate at rates averaging 1.90% and 2.01% at June 30, 2021 and December 31, 2020, respectively – maturing through February 2030 with call provisions through August 2021	390,000		475,000
Total FHLB advances and other borrowings	$	440,171	$	779,171

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 approximately $2.10 billion and $1.86 billion at June 30, 2021 and December 31, 2020, respectively.

LOANS - Summary of changes in the ACL on loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Financing Receivable, Impaired [Line Items]
Balance, beginning of period	$ 62,687	$ 38,545	$ 60,443	$ 28,028
Provision for credit losses on loans	0	11,610	3,950	22,179
Charge-offs	(4,456)	(3,471)	(6,611)	(16,688)
Recoveries	433	409	882	791
Balance, end of period	58,664	47,093	58,664	47,093
ASU 2016-13
Financing Receivable, Impaired [Line Items]
Balance, beginning of period				8,546
ASU 2016-13 \| PCD (Previously PCI) loans
Financing Receivable, Impaired [Line Items]
Balance, beginning of period				4,237
Commercial Loan Portfolio \| Commercial
Financing Receivable, Impaired [Line Items]
Balance, beginning of period	17,339	11,740	19,851	10,031
Provision for credit losses on loans	5	889	(2,016)	2,619
Charge-offs	(2,634)	(452)	(3,140)	(3,850)
Recoveries	139	36	154	41
Balance, end of period	14,849	12,213	14,849	12,213
Commercial Loan Portfolio \| Commercial \| ASU 2016-13
Financing Receivable, Impaired [Line Items]
Balance, beginning of period				2,327
Commercial Loan Portfolio \| Commercial \| ASU 2016-13 \| PCD (Previously PCI) loans
Financing Receivable, Impaired [Line Items]
Balance, beginning of period				1,045
Commercial Loan Portfolio \| Commercial real estate
Financing Receivable, Impaired [Line Items]
Balance, beginning of period	31,821	13,583	25,465	10,272
Provision for credit losses on loans	(168)	8,388	6,959	14,143
Charge-offs	(946)	(1,746)	(1,719)	(9,619)
Recoveries	11	71	13	85
Balance, end of period	30,718	20,296	30,718	20,296
Commercial Loan Portfolio \| Commercial real estate \| ASU 2016-13
Financing Receivable, Impaired [Line Items]
Balance, beginning of period				4,104
Commercial Loan Portfolio \| Commercial real estate \| ASU 2016-13 \| PCD (Previously PCI) loans
Financing Receivable, Impaired [Line Items]
Balance, beginning of period				1,311
Commercial Loan Portfolio \| Construction and land development
Financing Receivable, Impaired [Line Items]
Balance, beginning of period	1,239	1,321	1,433	290
Provision for credit losses on loans	414	248	425	(301)
Charge-offs	(1)	(62)	(272)	(74)
Recoveries	81	5	147	64
Balance, end of period	1,733	1,512	1,733	1,512
Commercial Loan Portfolio \| Construction and land development \| ASU 2016-13
Financing Receivable, Impaired [Line Items]
Balance, beginning of period				724
Commercial Loan Portfolio \| Construction and land development \| ASU 2016-13 \| PCD (Previously PCI) loans
Financing Receivable, Impaired [Line Items]
Balance, beginning of period				809
Residential Portfolio Segment \| Residential real estate
Financing Receivable, Impaired [Line Items]
Balance, beginning of period	3,981	4,638	3,929	2,499
Provision for credit losses on loans	(177)	153	(109)	410
Charge-offs	(141)	(7)	(251)	(395)
Recoveries	20	46	114	90
Balance, end of period	3,683	4,830	3,683	4,830
Residential Portfolio Segment \| Residential real estate \| ASU 2016-13
Financing Receivable, Impaired [Line Items]
Balance, beginning of period				1,211
Residential Portfolio Segment \| Residential real estate \| ASU 2016-13 \| PCD (Previously PCI) loans
Financing Receivable, Impaired [Line Items]
Balance, beginning of period				1,015
Consumer \| Consumer
Financing Receivable, Impaired [Line Items]
Balance, beginning of period	2,271	1,954	2,338	2,642
Provision for credit losses on loans	84	316	137	572
Charge-offs	(218)	(366)	(460)	(964)
Recoveries	155	183	277	374
Balance, end of period	2,292	2,087	2,292	2,087
Consumer \| Consumer \| ASU 2016-13
Financing Receivable, Impaired [Line Items]
Balance, beginning of period				(594)
Consumer \| Consumer \| ASU 2016-13 \| PCD (Previously PCI) loans
Financing Receivable, Impaired [Line Items]
Balance, beginning of period				57
Lease financing
Financing Receivable, Impaired [Line Items]
Balance, beginning of period	6,036	5,309	7,427	2,294
Provision for credit losses on loans	(158)	1,616	(1,446)	4,736
Charge-offs	(516)	(838)	(769)	(1,786)
Recoveries	27	68	177	137
Balance, end of period	$ 5,389	$ 6,155	$ 5,389	6,155
Lease financing \| ASU 2016-13
Financing Receivable, Impaired [Line Items]
Balance, beginning of period				774
Lease financing \| ASU 2016-13 \| PCD (Previously PCI) loans
Financing Receivable, Impaired [Line Items]
Balance, beginning of period				$ 0

DEPOSITS (Tables)

6 Months Ended

Jun. 30, 2021

Deposits [Abstract]

Schedule Summarizes the Classification of Deposits

The following table summarizes the classification of deposits as of June 30, 2021 and December 31, 2020:


(dollars in thousands)	June 30, 2021		December 31, 2020
Noninterest-bearing demand	$	1,366,453	$	1,469,579
Interest-bearing:
Checking	1,619,436		1,568,888
Money market	787,688		785,871
Savings	669,277		597,966
Time	753,497		678,712
Total deposits	$	5,196,351	$	5,101,016

GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

The carrying amount of goodwill by segment at June 30, 2021 and December 31, 2020 is summarized as follows:


(dollars in thousands)	June 30, 2021		December 31, 2020
Banking	$	157,158	$	157,158

Wealth management	4,746		4,746
Total goodwill	$	161,904	$	161,904

The Company’s intangible assets, consisting of core deposit and customer relationship intangibles, as of June 30, 2021 and December 31, 2020 are summarized as follows:


	June 30, 2021						December 31, 2020
(dollars in thousands)	Gross carrying amount		Accumulated amortization		Total		Gross carrying amount		Accumulated amortization		Total
Core deposit intangibles	$	57,012	$	(38,406)	$	18,606	$	57,012	$	(36,005)	$	21,007
Customer relationship intangibles	16,574		(7,280)		9,294		14,071		(6,696)		7,375
Total intangible assets	$	73,586	$	(45,686)	$	27,900	$	71,083	$	(42,701)	$	28,382

In conjunction with the acquisition of ATG Trust, the Company recorded $2.5 million of customer relationship intangibles, which are being amortized on a straight-line basis over an estimated useful life of 6 years.

Amortization of intangible assets was $1.5 million and $3.0 million for the three and six months ended June 30, 2021, respectively, and $1.6 million and $3.4 million for the comparable periods in 2020, respectively

GOODWILL AND INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

The carrying amount of goodwill by segment at June 30, 2021 and December 31, 2020 is summarized as follows:


(dollars in thousands)	June 30, 2021		December 31, 2020
Banking	$	157,158	$	157,158

Wealth management	4,746		4,746
Total goodwill	$	161,904	$	161,904

The Company’s intangible assets, consisting of core deposit and customer relationship intangibles, as of June 30, 2021 and December 31, 2020 are summarized as follows:


	June 30, 2021						December 31, 2020
(dollars in thousands)	Gross carrying amount		Accumulated amortization		Total		Gross carrying amount		Accumulated amortization		Total
Core deposit intangibles	$	57,012	$	(38,406)	$	18,606	$	57,012	$	(36,005)	$	21,007
Customer relationship intangibles	16,574		(7,280)		9,294		14,071		(6,696)		7,375
Total intangible assets	$	73,586	$	(45,686)	$	27,900	$	71,083	$	(42,701)	$	28,382

PREMISES AND EQUIPMENT, NET

6 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

PREMISES AND EQUIPMENT, NET

A summary of premises and equipment at June 30, 2021 and December 31, 2020 is as follows:


(dollars in thousands)	June 30, 2021		December 31, 2020
Land	$	15,696	$	16,158
Buildings and improvements	66,426		65,932
Furniture and equipment	33,473		33,202
Total	115,595		115,292
Accumulated depreciation	(43,792)		(41,168)
Premises and equipment, net	$	71,803	$	74,124

Depreciation expense for the three and six months ended June 30, 2021 was $1.4 million and $2.9 million, respectively, and $1.6 million and $3.3 million for the three and six months ended June 30, 2020, respectively.

LOAN SERVICING RIGHTS - Changes in MSR (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Loan servicing rights:
Loan servicing rights, Beginning balance	$ 35,997	$ 56,909	$ 38,322	$ 57,637
Refinancing fee received from third party	(337)	0	(604)	0
Loan servicing rights, Ending balance	33,732	56,751	33,732	56,751
Valuation allowances:
Valuation allowance, Beginning balance	0	13,412	0	4,944
Additions	0	107	0	8,575
Reductions	0	0	0	0
Valuation allowance, Ending balance	0	13,519	0	13,519
Loan servicing rights, net					$ 33,732			$ 43,232
Fair value, Beginning of period	34,255	43,232	34,255	43,232	$ 34,255	$ 35,997	$ 38,322	$ 43,232	$ 43,497	$ 52,693
Fair value, End of period	34,255	43,232	34,255	43,232
Commercial FHA Mortgage Loans
Loan servicing rights:
Originated servicing	0	657	0	657
Amortization	(780)	(815)	(1,563)	(1,543)
Permanent impairment	$ (1,148)	$ 0	$ (2,423)	$ 0

ACQUISITIONS AND DISPOSITIONS (Tables)

6 Months Ended

Jun. 30, 2021

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition

Management's preliminary valuation of the tangible and intangible assets acquired, which are based on assumptions that are subject to change, and the resulting allocation of the consideration paid is reflected in the table below. Prior to the end of the one-year measurement period for finalizing the consideration paid allocation, if information becomes available which

would indicate adjustments are required, such adjustments will be included in the allocation in the reporting period in which the adjustment amounts are determined.


(dollars in thousands)	ATG Trust
Assets acquired:
Intangible assets	$	2,503
Other assets	614
Total assets acquired and consideration paid	3,117
Liabilities assumed:
Other liabilities	320
Total liabilities assumed	320
Net assets acquired and consideration paid	$	2,797

Intangible assets:
Customer relationship intangible	$	2,503
Estimated useful life	6 years

ACQUISITIONS AND DISPOSITIONS - Narrative (Details) - ATG Trust $ in Millions	Jun. 01, 2021 USD ($)
Business Acquisition
Fair value of assets under management	$ 399.7
Assets acquired	2.8
Transaction and integration costs	$ 0.2

ACQUISITIONS AND DISPOSITIONS

6 Months Ended

Jun. 30, 2021

Business Combinations [Abstract]

ACQUISITIONS AND DISPOSITIONS

On June 1, 2021, the Company completed its acquisition of substantially all of the trust assets of ATG Trust Company (“ATG Trust”), a trust company based in Chicago, Illinois, with approximately $399.7 million in assets under management. In aggregate, the Company acquired the assets of ATG Trust for $2.8 million in cash. The acquisition was accounted for under the acquisition method of accounting. Accordingly, the Company recognized amounts for identifiable assets acquired at their estimated acquisition date fair values, while $0.2 million of transaction and integration costs associated with the acquisition have been expensed during 2021, and remaining integration costs will be expensed in future periods as incurred.

would indicate adjustments are required, such adjustments will be included in the allocation in the reporting period in which the adjustment amounts are determined.


(dollars in thousands)	ATG Trust
Assets acquired:
Intangible assets	$	2,503
Other assets	614
Total assets acquired and consideration paid	3,117
Liabilities assumed:
Other liabilities	320
Total liabilities assumed	320
Net assets acquired and consideration paid	$	2,797

Intangible assets:
Customer relationship intangible	$	2,503
Estimated useful life	6 years

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.

LOANS (Tables)

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Summary of Loans

The following table presents total loans outstanding by portfolio class, as of June 30, 2021 and December 31, 2020:


(dollars in thousands)	June 30, 2021		December 31, 2020
Commercial:
Commercial	$	719,642	$	937,382
Commercial other	704,438		748,193
Commercial real estate:
Commercial real estate non-owner occupied	908,787		871,451
Commercial real estate owner occupied	440,722		423,257
Multi-family	116,176		151,534
Farmland	74,804		79,731
Construction and land development	212,508		172,737
Total commercial loans	3,177,077		3,384,285
Residential real estate:
Residential first lien	296,256		358,329
Other residential	70,356		84,551
Consumer:
Consumer	74,627		80,642
Consumer other	810,389		785,460
Lease financing	407,161		410,064
Total loans, gross	$	4,835,866	$	5,103,331

Schedule Of Changes In Financing Receivable Related Parties Roll Forward

The new loans, other additions, repayments and other reductions with respect to such persons for the three and six months ended June 30, 2021 and 2020, are summarized as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Beginning balance	$	19,372	$	21,735	$	19,693	$	22,989
New loans and other additions	404		2,462		1,024		2,542
Repayments and other reductions	(1,014)		(391)		(1,955)		(1,725)
Ending balance	$	18,762	$	23,806	$	18,762	$	23,806

Summary of Changes in Allowance for Loan Losses, by Loan Portfolio

The following table represents, by loan portfolio segment, a summary of changes in the allowance for credit losses on loans for the three and six months ended June 30, 2021 and 2020:


	Commercial Loan Portfolio						Other Loan Portfolio
(dollars in thousands)	Commercial		Commercial real estate		Construction and land development		Residential real estate		Consumer		Lease financing		Total
Changes in allowance for credit losses on loans for the three months ended June 30, 2021:
Balance, beginning of period	$	17,339	$	31,821	$	1,239	$	3,981	$	2,271	$	6,036	$	62,687
Provision for credit losses on loans	5		(168)		414		(177)		84		(158)		—
Charge-offs	(2,634)		(946)		(1)		(141)		(218)		(516)		(4,456)
Recoveries	139		11		81		20		155		27		433
Balance, end of period	$	14,849	$	30,718	$	1,733	$	3,683	$	2,292	$	5,389	$	58,664

Changes in allowance for credit losses on loans for the six months ended June 30, 2021:
Balance, beginning of period	$	19,851	$	25,465	$	1,433	$	3,929	$	2,338	$	7,427	$	60,443
Provision for credit losses on loans	(2,016)		6,959		425		(109)		137		(1,446)		3,950
Charge-offs	(3,140)		(1,719)		(272)		(251)		(460)		(769)		(6,611)
Recoveries	154		13		147		114		277		177		882
Balance, end of period	$	14,849	$	30,718	$	1,733	$	3,683	$	2,292	$	5,389	$	58,664

Changes in allowance for credit losses on loans for the three months ended June 30, 2020:
Balance, beginning of period	$	11,740	$	13,583	$	1,321	$	4,638	$	1,954	$	5,309	$	38,545
Provision for credit losses on loans	889		8,388		248		153		316		1,616		11,610
Charge-offs	(452)		(1,746)		(62)		(7)		(366)		(838)		(3,471)
Recoveries	36		71		5		46		183		68		409
Balance, end of period	$	12,213	$	20,296	$	1,512	$	4,830	$	2,087	$	6,155	$	47,093

Changes in allowance for credit losses on loans for the six months ended June 30, 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	2,619		14,143		(301)		410		572		4,736		22,179
Charge-offs	(3,850)		(9,619)		(74)		(395)		(964)		(1,786)		(16,688)
Recoveries	41		85		64		90		374		137		791
Balance, end of period	$	12,213	$	20,296	$	1,512	$	4,830	$	2,087	$	6,155	$	47,093

Schedule of 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 amortized cost basis of individually evaluated loans on nonaccrual status as of June 30, 2021 and December 31, 2020:


	June 30, 2021						December 31, 2020
(dollars in thousands)	Nonaccrual with allowance		Nonaccrual with no allowance		Total nonaccrual		Nonaccrual with allowance		Nonaccrual with no allowance		Total nonaccrual
Commercial:
Commercial	$	5,232	$	4,890	$	10,122	$	3,498	$	—	$	3,498
Commercial other	4,054		—		4,054		2,634		—		2,634
Commercial real estate:
Commercial real estate non-owner occupied	6,706		14,065		20,771		5,509		3,823		9,332
Commercial real estate owner occupied	2,514		2,135		4,649		3,598		3,227		6,825
Multi-family	1,394		996		2,390		7,921		2,325		10,246

Construction and land development	1,302		—		1,302		2,131		693		2,824
Total commercial loans	21,202		22,086		43,288		25,291		10,068		35,359
Residential real estate:
Residential first lien	7,252		1,053		8,305		8,534		1,071		9,605
Other residential	2,306		—		2,306		2,437		—		2,437
Consumer:
Consumer	185		—		185		262		—		262

Lease financing	2,797		—		2,797		1,965		—		1,965
Total loans	$	33,742	$	23,139	$	56,881	$	38,489	$	11,139	$	49,628

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 June 30, 2021 and December 31, 2020:


	Type of Collateral
(dollars in thousands)	Real Estate		Blanket Lien		Equipment		Total
June 30, 2021
Commercial
Commercial	$	—	$	7,518	$	—	$	7,518

Commercial Real Estate
Non-Owner Occupied	20,481		—		—		20,481
Owner Occupied	2,132		—		—		2,132
Multi-Family	2,290		—		—		2,290



Lease financing	—		—		468		468
Total Collateral Dependent Loans	$	24,903	$	7,518	$	468	$	32,889

December 31, 2020



Commercial Real Estate
Non-Owner Occupied	$	8,159	$	—	$	—	$	8,159

Multi-Family	10,121		—		—		10,121
Construction and Land Development	693		—		—		693



Total Collateral Dependent Loans	$	18,973	$	—	$	—	$	18,973

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 June 30, 2021 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		Nonaccrual		Current		Total
Commercial:
Commercial	$	1,255	$	63	$	—	$	1,318	$	10,122	$	708,202	$	719,642
Commercial other	6,048		1,860		—		7,908		4,054		692,476		704,438
Commercial real estate:
Commercial real estate non-owner occupied	598		452		55		1,105		20,771		886,911		908,787
Commercial real estate owner occupied	1,091		—		—		1,091		4,649		434,982		440,722
Multi-family	59		—		—		59		2,390		113,727		116,176
Farmland	242		—		—		242		—		74,562		74,804
Construction and land development	400		—		—		400		1,302		210,806		212,508
Total commercial loans	9,693		2,375		55		12,123		43,288		3,121,666		3,177,077
Residential real estate:
Residential first lien	94		779		—		873		8,305		287,078		296,256
Other residential	24		43		25		92		2,306		67,958		70,356
Consumer:
Consumer	78		168		—		246		185		74,196		74,627
Consumer other	2,914		1,874		—		4,788		—		805,601		810,389
Lease financing	1,801		381		—		2,182		2,797		402,182		407,161
Total loans	$	14,604	$	5,620	$	80	$	20,304	$	56,881	$	4,758,681	$	4,835,866

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		Nonaccrual		Current		Total
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

Summary of TDRs Loans

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 June 30, 2021 and December 31, 2020:


	June 30, 2021						December 31, 2020
(dollars in thousands)	Accruing (1)		Non-accrual (2)		Total		Accruing (1)		Non-accrual (2)		Total
Commercial	$	795	$	827	$	1,622	$	967	$	558	$	1,525
Commercial real estate	2,282		3,863		6,145		866		4,314		5,180
Construction and land development	35		396		431		39		909		948
Residential real estate	706		3,918		4,624		988		3,705		4,693
Consumer	79		—		79		41		—		41
Lease financing	505		31		536		—		38		38
Total loans	$	4,402	$	9,035	$	13,437	$	2,901	$	9,524	$	12,425

(1)These loans are still accruing interest.

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

The following table presents a summary of loans by portfolio that were restructured during the three and six months ended June 30, 2021 and 2020. There were no loans modified as TDRs within the previous twelve months that subsequently defaulted during the three and six months ended June 30, 2021 or 2020:


	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 three months ended June 30, 2021
Troubled debt restructurings:
Number of loans	5		1		—		1		1		1		9
Pre-modification outstanding balance	$	609	$	1,432	$	—	$	136	$	19	$	505	$	2,701
Post-modification outstanding balance	609		1,432		—		139		19		505		2,704





For the six months ended June 30, 2021
Troubled debt restructurings:
Number of loans	5		1		1		3		3		1		14
Pre-modification outstanding balance	$	609	$	1,432	$	49	$	191	$	50	$	505	$	2,836
Post-modification outstanding balance	609		1,432		40		195		50		505		2,831





For the three months ended June 30, 2020
Troubled debt restructurings:
Number of loans	2		2		2		5		—		—		11
Pre-modification outstanding balance	$	432	$	633	$	484	$	343	$	—	$	—	$	1,892
Post-modification outstanding balance	431		606		472		233		—		—		1,742





For the six months ended June 30, 2020
Troubled debt restructurings:
Number of loans	2		2		2		11		—		—		17
Pre-modification outstanding balance	$	432	$	633	$	484	$	1,018	$	—	$	—	$	2,567
Post-modification outstanding balance	431		606		472		903		—		—		2,412

Schedule of Loans Credit Equality Indicators

The following tables present the recorded investment of the commercial loan portfolio by risk category as of June 30, 2021 and December 31, 2020:


			June 30, 2021
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2021		2020		2019		2018		2017		Prior		Revolving loans		Total
Commercial	Commercial	Acceptable credit quality	$	41,515	$	90,431	$	73,288	$	27,900	$	26,192	$	54,717	$	368,714	$	682,757
		Special mention	260		11		326		1,958		21		165		279		3,020
		Substandard	148		613		1,569		2,226		3,639		8,873		6,675		23,743
		Substandard – nonaccrual	55		—		115		710		517		406		8,319		10,122
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	41,978		91,055		75,298		32,794		30,369		64,161		383,987		719,642

	Commercial other	Acceptable credit quality	184,797		242,848		129,947		40,644		463		312		75,626		674,637
		Special mention	—		2,096		11,437		4,299		6		—		3,392		21,230
		Substandard	160		13		57		913		—		—		3,254		4,397
		Substandard – nonaccrual	—		261		3,005		784		—		—		4		4,054
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	120		—		—		—		—		—		—		120
		Subtotal	185,077		245,218		144,446		46,640		469		312		82,276		704,438

Commercial real estate	Non-owner occupied	Acceptable credit quality	144,795		171,142		102,730		39,029		73,057		185,287		5,244		721,284
		Special mention	27		37		9,910		4,214		347		22,588		4,036		41,159
		Substandard	3,985		9,674		14,562		19,843		23,120		53,986		403		125,573
		Substandard – nonaccrual	199		119		6,358		—		—		14,095		—		20,771
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	149,006		180,972		133,560		63,086		96,524		275,956		9,683		908,787

	Owner occupied	Acceptable credit quality	68,449		68,216		52,151		34,320		46,633		124,031		2,521		396,321
		Special mention	—		1,301		2,450		223		—		7,881		—		11,855
		Substandard	—		4,574		8,196		996		529		13,288		314		27,897
		Substandard – nonaccrual	—		543		198		436		85		3,387		—		4,649
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	68,449		74,634		62,995		35,975		47,247		148,587		2,835		440,722

	Multi-family	Acceptable credit quality	48,839		7,351		3,823		2,780		1,892		24,769		2,218		91,672
		Special mention	—		458		—		8,380		—		1,306		—		10,144
		Substandard	1,013		—		184		514		—		10,259		—		11,970
		Substandard – nonaccrual	—		—		—		—		—		2,390		—		2,390
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	49,852		7,809		4,007		11,674		1,892		38,724		2,218		116,176

	Farmland	Acceptable credit quality	12,112		16,635		4,484		4,066		8,336		21,642		1,600		68,875
		Special mention	—		237		1,365		167		—		282		—		2,051
		Substandard	647		239		146		318		121		2,206		201		3,878
		Substandard – nonaccrual	—		—		—		—		—		—		—		—
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	12,759		17,111		5,995		4,551		8,457		24,130		1,801		74,804

Construction and land development		Acceptable credit quality	20,102		71,273		56,003		25,805		2,856		4,909		14,644		195,592
		Special mention	—		—		4,319		643		—		—		—		4,962
		Substandard	—		1,336		8,875		—		—		—		—		10,211
		Substandard – nonaccrual	—		—		69		—		—		1,233		—		1,302
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	223		218		—		—		—		—		—		441
		Subtotal	20,325		72,827		69,266		26,448		2,856		6,142		14,644		212,508

Total		Acceptable credit quality	520,609		667,896		422,426		174,544		159,429		415,667		470,567		2,831,138
		Special mention	287		4,140		29,807		19,884		374		32,222		7,707		94,421
		Substandard	5,953		16,449		33,589		24,810		27,409		88,612		10,847		207,669
		Substandard – nonaccrual	254		923		9,745		1,930		602		21,511		8,323		43,288
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	343		218		—		—		—		—		—		561
Total commercial loans			$	527,446	$	689,626	$	495,567	$	221,168	$	187,814	$	558,012	$	497,444	$	3,177,077


			December 31, 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

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 as of June 30, 2021 and December 31, 2020:


			June 30, 2021
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
Residential real estate	Residential first lien	Performing	$	65,471	$	37,060	$	25,746	$	34,980	$	14,745	$	108,864	$	508	$	287,374
		Nonperforming	999		1,044		190		—		—		6,649		—		8,882
		Subtotal	66,470		38,104		25,936		34,980		14,745		115,513		508		296,256

	Other residential	Performing	1,705		2,552		2,054		801		329		2,525		57,930		67,896
		Nonperforming	137		19		12		—		—		154		2,138		2,460
		Subtotal	1,842		2,571		2,066		801		329		2,679		60,068		70,356

Consumer	Consumer	Performing	5,775		12,543		11,820		20,363		15,258		4,486		4,118		74,363
		Nonperforming	65		11		4		46		30		102		6		264
		Subtotal	5,840		12,554		11,824		20,409		15,288		4,588		4,124		74,627

	Consumer other	Performing	251,750		437,735		77,825		15,362		4,761		6,764		16,192		810,389
		Nonperforming	—		—		—		—		—		—		—		—
		Subtotal	251,750		437,735		77,825		15,362		4,761		6,764		16,192		810,389

Leases financing		Performing	6,826		50,476		107,577		152,279		80,679		6,022		—		403,859
		Nonperforming	—		389		886		1,670		234		123		—		3,302
		Subtotal	6,826		50,865		108,463		153,949		80,913		6,145		—		407,161

Total		Performing	331,527		540,366		225,022		223,785		115,772		128,661		78,748		1,643,881
		Nonperforming	1,201		1,463		1,092		1,716		264		7,028		2,144		14,908
Total other loans			$	332,728	$	541,829	$	226,114	$	225,501	$	116,036	$	135,689	$	80,892	$	1,658,789


			December 31, 2020
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			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

LOAN SERVICING RIGHTS (Tables)

6 Months Ended

Jun. 30, 2021

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 three and six months ended June 30, 2021 and 2020 are summarized as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Loan servicing rights:
Balance, beginning of period	$	35,997	$	56,909	$	38,322	$	57,637
Originated servicing	—		657		—		657
Amortization	(780)		(815)		(1,563)		(1,543)
Refinancing fee received from third party	(337)		—		(604)		—
Permanent impairment	(1,148)		—		(2,423)		—
Balance, end of period	33,732		56,751		33,732		56,751
Valuation allowances:
Balance, beginning of period	—		13,412		—		4,944
Additions	—		107		—		8,575
Reductions	—		—		—		—
Balance, end of period	—		13,519		—		13,519
Loan servicing rights, net	$	33,732	$	43,232	$	33,732	$	43,232
Fair value:
At beginning of period	$	35,997	$	43,497	$	38,322	$	52,693
At end of period	$	34,255	$	43,232	$	34,255	$	43,232

REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

The 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 three and six months ended June 30, 2021 and 2020.


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Noninterest income - in-scope of Topic 606
Wealth management revenue:
Trust management/administration fees	$	4,971	$	4,273	$	9,430	$	8,482
Investment advisory fees	423		495		876		1,024
Investment brokerage fees	485		317		886		712
Other	650		613		1,268		1,157
Service charges on deposit accounts:
Nonsufficient fund fees	1,202		961		2,343		2,827
Other	714		745		1,399		1,535
Interchange revenues	3,797		3,013		7,172		5,846
Other income:
Merchant services revenue	396		304		733		655
Other	1,418		929		2,209		1,867
Noninterest income - out-of-scope of Topic 606	3,361		7,746		5,917		3,889
Total noninterest income	$	17,417	$	19,396	$	32,233	$	27,994

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 Topic 606. 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 noninterest income streams considered in-scope by Topic 606 are discussed 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, gain on sales of other real estate owned, and other noninterest related fees. 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.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

LEASES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
LEASES (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
LEASES
Operating lease right-of-use asset	$ 8,896		$ 8,896		$ 9,177
Operating lease liabilities	$ 11,306		$ 11,306		11,958
Renewal term of lease (in years)	10 years		10 years
Operating lease cost	$ 514	$ 789	$ 1,037	$ 1,570
Operating cash flows from leases	603	782	1,386	1,727
Right-of-use assets obtained in exchange for lease obligations	609	916	689	1,440
Right-of-use assets derecognized due to terminations or impairment	$ (88)	$ 0	$ (210)	$ (13)
Weighted average remaining lease term	7 years 10 months 24 days	7 years 7 months 6 days	7 years 10 months 24 days	7 years 7 months 6 days
Weighted average discount rate	2.86%	2.89%	2.86%	2.89%
Projected minimum rental payments
2021 remaining	$ 969		$ 969
2022	2,244		2,244
2023	2,014		2,014
2024	1,718		1,718
2025	814		814
Thereafter	4,947		4,947
Total future minimum lease payments	12,706		12,706
Less imputed interest	(1,400)		(1,400)
Total operating lease liabilities	$ 11,306		$ 11,306		$ 11,958
Minimum
LEASES
Remaining lease terms	3 months		3 months
Maximum
LEASES
Remaining lease terms	12 years		12 years

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements of the Company are unaudited and should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2021. The consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. A discussion of these policies can be found in Note 1 – Summary of Significant Accounting Policies included in the Company's 2020 Annual Report on Form 10-K. Certain reclassifications of 2020 amounts have been made to conform to the 2021 presentation. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 or any other period. 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 unaudited balance sheets. Accounting Guidance Adopted in 2021 FASB ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes – In December 2019, the Financial Accounting Standard Board ("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 became effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The adoption of ASU 2019-12 on January 1, 2021 did not have a material impact on the Company's 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 became 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 does not use the equity method of accounting for any equity securities, and its equity securities without a readily determinable fair value are recorded at cost, minus any impairment; therefore, the adoption of this new guidance did not have an impact on the Company's consolidated financial statements. Accounting Guidance Issued But Not Yet Adopted 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; and (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 ASU No. 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 its consolidated financial statements.

SHORT-TERM BORROWINGS (Details) - USD ($)	6 Months Ended	12 Months Ended
SHORT-TERM BORROWINGS (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Outstanding at period-end	$ 75,985,000	$ 68,957,000
Average amount outstanding	70,608,000	60,306,000
Maximum amount outstanding at any month end	$ 77,497,000	$ 77,136,000
Weighted average interest rate:
During period	0.13%	0.30%
End of period	0.11%	0.12%
Short-Term Borrowings
Investment securities pledged/collateralized for secured borrowings	$ 73,100,000	$ 76,500,000
Line of credit	0	0
Line of credit facility, maximum borrowing capacity	20,000,000.0
Payroll Protection Program Loans, Liquidity
Short-Term Borrowings
Line of credit facility, maximum borrowing capacity	146,700,000
Commercial real estate
Short-Term Borrowings
Loans pledged as collateral	68,700,000	68,100,000
Federal Reserve Discount Window
Short-Term Borrowings
Line of credit	$ 60,300,000	$ 54,400,000

SUBORDINATED DEBT

6 Months Ended

Jun. 30, 2021

Subordinated Borrowings [Abstract]

SUBORDINATED DEBT

The following table summarizes the Company’s subordinated debt as of June 30, 2021 and December 31, 2020:


(dollars in thousands)	June 30, 2021		December 31, 2020
Subordinated debt issued June 2015 – variable interest rate equivalent to three month LIBOR plus 4.35%, which was 4.59% at December 31, 2020	$	—	$	31,075
Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $550 - maturing June 18, 2025	546		545
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	39,593		39,561
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	71,914		71,785
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	26,853		26,829
Total subordinated debt	$	138,906	$	169,795

During the second quarter of 2021, the Company repurchased the $31.1 million subordinated debentures issued in June 2015. No gain or loss was recognized on the repurchase.

The subordinated debentures may be included in Tier 2 capital (subject to certain limitations and phase-outs) under current regulatory guidelines and interpretations.

LOAN SERVICING RIGHTS - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
MORTGAGE SERVICING RIGHTS
Prepayment rate	8.20%	8.18%
Discount rate	11.54%	11.48%
Loan servicing rights	$ 34,577	$ 39,276
Subsidiaries \| Disposed of by Sale
MORTGAGE SERVICING RIGHTS
Principal balances of loans serviced for others	3,150,000	3,500,000
SBA servicing rights
MORTGAGE SERVICING RIGHTS
Principal balances of loans serviced for others	53,200	49,200
Loan servicing rights	800	1,000
Residential Mortgage Loans
MORTGAGE SERVICING RIGHTS
Principal balances of loans serviced for others	342,900	382,300
Mortgage servicing rights held for sale	$ 800	$ 900

LOANS - Impaired Loans with interest recognized (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Interest income :
Interest income recognized on nonaccrual loans	$ 0	$ 0	$ 0	$ 0
Additional interest income that would have been recorded had they been current	700,000	1,100,000	1,400,000	1,900,000
Recognized interest income on loans modified under troubled debt restructurings	$ 20,000	$ 9,000	$ 72,000	$ 29,000

DERIVATIVE INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Derivative disclosures
Repayment of FHLB advance				$ 639,000	$ 3,401
Derivative, gain (loss) on derivative, net	$ (500)		$ 700	(1,000)	1,300
Stockholders' equity	648,186	$ 635,467	$ 633,589	648,186	$ 633,589	$ 621,391	$ 631,160	$ 661,911
Accumulated Gain (Loss), Net, Cash Flow Hedges
Derivative disclosures
Stockholders' equity	4,000			4,000		300
Other assets
Derivative disclosures
Notational amount, asset	109,104			109,104		354,353
Other assets \| Cash Flow Hedge
Derivative disclosures
Derivative assets	5,600			5,600
Other liabilities \| Cash Flow Hedge
Derivative disclosures
Derivative liability						400
Receive Fixed, Pay Variable Interest Rate Swaps \| Cash Flow Hedge
Derivative disclosures
Derivative terminated		50,000
Repayment of FHLB advance		50,000
Derivative, gain (loss) on derivative, net		$ 300
Notational amount, asset	50,000			50,000		100,000
Future Starting Receive Fixed, Pay Variable Interest Rate Swaps \| Cash Flow Hedge
Derivative disclosures
Notational amount, asset	140,000			140,000
Interest rate swap contracts
Derivative disclosures
Notional amount of interest rate swaps	8,200			8,200		8,500
Interest rate swap contracts \| Other liabilities
Derivative disclosures
Fair value of offsetting counterparty derivative instruments	$ 600			$ 600		$ 800

SHORT-TERM BORROWINGS (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Schedule of Short Term Borrowings

The following table presents the distribution of short-term borrowings and related weighted average interest rates as of June 30, 2021 and December 31, 2020:


	Repurchase agreements
(dollars in thousands)	As of and for the Six Months Ended June 30, 2021			As of and for the Year Ended December 31, 2020
Outstanding at period-end	$	75,985		$	68,957
Average amount outstanding	70,608			60,306
Maximum amount outstanding at any month end	77,497			77,136
Weighted average interest rate:
During period	0.13		%	0.30		%
End of period	0.11		%	0.12		%

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Assets
Cash and due from banks	$ 418,782	$ 337,080
Federal funds sold	6,318	4,560
Cash and cash equivalents	425,100	341,640
Investment securities available for sale, at fair value (allowance for credit losses of $326 and $366 at June 30, 2021 and December 31, 2020, respectively)	747,325	676,711
Equity securities, at fair value	9,506	9,424
Loans	4,835,866	5,103,331
Allowance for credit losses on loans	(58,664)	(60,443)
Total loans, net	4,777,202	5,042,888
Loans held for sale	12,187	138,090
Premises and equipment, net	71,803	74,124
Operating lease right-of-use asset	8,896	9,177
Other real estate owned	12,768	20,247
Nonmarketable equity securities	48,673	56,596
Accrued interest receivable	22,623	23,545
Loan servicing rights, at lower of cost or fair value	34,577	39,276
Goodwill	161,904	161,904
Other intangible assets, net	27,900	28,382
Cash surrender value of life insurance policies	148,277	146,004
Other assets	121,269	100,532
Total assets	6,630,010	6,868,540
Deposits:
Noninterest-bearing	1,366,453	1,469,579
Interest-bearing	3,829,898	3,631,437
Total deposits	5,196,351	5,101,016
Short-term borrowings	75,985	68,957
FHLB advances and other borrowings	440,171	779,171
Subordinated debt	138,906	169,795
Trust preferred debentures	49,094	48,814
Operating lease liabilities	11,306	11,958
Other liabilities	70,011	67,438
Total liabilities	5,981,824	6,247,149
Shareholders’ Equity:
Common stock, $0.01 par value; 40,000,000 shares authorized; 22,380,492 and 22,325,471 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	224	223
Capital surplus	455,215	453,410
Retained earnings	182,361	156,327
Accumulated other comprehensive income	10,386	11,431
Total shareholders’ equity	648,186	621,391
Total liabilities and shareholders’ equity	$ 6,630,010	$ 6,868,540

FHLB ADVANCES AND OTHER BORROWINGS (Tables)

6 Months Ended

Jun. 30, 2021

FHLB ADVANCES AND OTHER BORROWINGS

Schedule of Federal Home Loan Bank (FHLB) Advances

The following table summarizes our FHLB advances and other borrowings as of June 30, 2021 and December 31, 2020:


(dollars in thousands)	June 30, 2021		December 31, 2020
Midland States Bancorp, Inc.
Series G redeemable preferred stock - 171 shares at $1,000 per share	$	171	$	171
Midland States Bank
FHLB advances – fixed rate, fixed term at rates averaging 0.22% and 0.24% at June 30, 2021 and December 31, 2020, respectively – maturing through July 2021	50,000		304,000
FHLB advances – putable fixed rate at rates averaging 1.90% and 2.01% at June 30, 2021 and December 31, 2020, respectively – maturing through February 2030 with call provisions through August 2021	390,000		475,000
Total FHLB advances and other borrowings	$	440,171	$	779,171

LEASES (Tables)

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Summary of Information Related to Operating Leases

Information related to operating leases for the three and six months ended June 30, 2021 and 2020 was as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2021			2020			2021			2020
Operating lease cost	$	514		$	789		$	1,037		$	1,570
Operating cash flows from leases	603			782			1,386			1,727
Right-of-use assets obtained in exchange for lease obligations	609			916			689			1,440
Right-of-use assets derecognized due to terminations or impairment	(88)			—			(210)			(13)
Weighted average remaining lease term	7.9 years			7.6 years			7.9 years			7.6 years
Weighted average discount rate	2.86		%	2.89		%	2.86		%	2.89		%

Summary of Projected Minimum Rental Payments

The projected minimum rental payments under the terms of the leases as of June 30, 2021 were as follows:


(dollars in thousands)	Amount
Year ending December 31:
2021 remaining	$	969
2022	2,244
2023	2,014
2024	1,718
2025	814
Thereafter	4,947
Total future minimum lease payments	12,706
Less imputed interest	(1,400)
Total operating lease liabilities	$	11,306

LOANS - Summary of loans and credit losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Summary of loans
Loans	$ 4,835,866		$ 4,835,866		$ 5,103,331
Net deferred loan fees	800		800		700
Unearned income	45,500		45,500		46,500
Loans held for sale	12,187		12,187		138,090
Proceeds from sales of loans held for sale			494,541	$ 470,309
Commercial Loan Portfolio
Summary of loans
Loans	3,177,077		3,177,077		3,384,285
Lease financing
Summary of loans
Loans	407,161		407,161		410,064
Commercial Real Estate, Residential Real Estate And Consumer Loans
Summary of loans
Proceeds from sales of loans held for sale	161,900	$ 358,100	494,500	$ 470,300
Commercial \| Commercial Loan Portfolio
Summary of loans
Loans	719,642		719,642		937,382
Commercial other \| Commercial Loan Portfolio
Summary of loans
Loans	704,438		704,438		748,193
Commercial real estate non-owner occupied \| Commercial Loan Portfolio
Summary of loans
Loans	908,787		908,787		871,451
Commercial real estate owner occupied \| Commercial Loan Portfolio
Summary of loans
Loans	440,722		440,722		423,257
Multi-family \| Commercial Loan Portfolio
Summary of loans
Loans	116,176		116,176		151,534
Farmland \| Commercial Loan Portfolio
Summary of loans
Loans	74,804		74,804		79,731
Construction and land development \| Commercial Loan Portfolio
Summary of loans
Loans	212,508		212,508		172,737
Residential first lien \| Residential Portfolio Segment
Summary of loans
Loans	296,256		296,256		358,329
Other residential \| Residential Portfolio Segment
Summary of loans
Loans	70,356		70,356		84,551
Consumer \| Consumer
Summary of loans
Loans	74,627		74,627		80,642
Consumer other \| Consumer
Summary of loans
Loans	810,389		810,389		785,460
Payroll Protection Program \| Commercial Loan Portfolio
Summary of loans
Loans	$ 146,700		$ 146,700		$ 184,400

LOANS - Risk rating (Details)	6 Months Ended
LOANS - Risk rating (Details)	Jun. 30, 2021 region
Risk category
Number of main regions	4
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

SHORT-TERM BORROWINGS

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

SHORT-TERM BORROWINGS

The following table presents the distribution of short-term borrowings and related weighted average interest rates as of June 30, 2021 and December 31, 2020:


	Repurchase agreements
(dollars in thousands)	As of and for the Six Months Ended June 30, 2021			As of and for the Year Ended December 31, 2020
Outstanding at period-end	$	75,985		$	68,957
Average amount outstanding	70,608			60,306
Maximum amount outstanding at any month end	77,497			77,136
Weighted average interest rate:
During period	0.13		%	0.30		%
End of period	0.11		%	0.12		%

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 $73.1 million and $76.5 million at June 30, 2021 and December 31, 2020, respectively, were pledged for securities sold under agreements to repurchase.

The Company had available lines of credit of $60.3 million and $54.4 million at June 30, 2021 and December 31, 2020, 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 $68.7 million and $68.1 million at June 30, 2021 and December 31, 2020, respectively. There were no outstanding borrowings under these lines at June 30, 2021 and December 31, 2020.

At June 30, 2021, 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 $146.7 million. However, no PPP loans were pledged to the Facility as of June 30, 2021. 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 June 30, 2021, the Company had available federal funds lines of credit totaling $20.0 million. These lines of credit were unused at June 30, 2021.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 20,124	$ 12,569	$ 38,662	$ 14,118
Investment securities available for sale:
Unrealized gains (losses) that occurred during the period	565	4,073	(6,176)	5,394
Provision for credit loss expense	(190)	52	(40)	127
Reclassification adjustment for realized net gains on sales of investment securities included in net income	(377)	0	(377)	0
Income tax effect	0	(1,134)	1,813	(1,518)
Change in investment securities available for sale, net of tax	(2)	2,991	(4,780)	4,003
Cash flow hedges:
Net unrealized derivative gains (losses) on cash flow hedges	(2,797)	(983)	5,152	(983)
Income tax effect	770	270	(1,417)	270
Change in cash flow hedges, net of tax	(2,027)	(713)	3,735	(713)
Other comprehensive income (loss), net of tax	(2,029)	2,278	(1,045)	3,290
Total comprehensive income	$ 18,095	$ 14,847	$ 37,617	$ 17,408

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured and Recorded at Fair Value

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 nonrecurring basis at June 30, 2021 and December 31, 2020, are summarized below:


	June 30, 2021
(dollars in thousands)	Carrying amount		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. Treasury securities	$	325	$	325	$	—	$	—
U.S. government sponsored entities and U.S. agency securities	53,033		—		53,033		—
Mortgage-backed securities - agency	310,292		—		310,292		—
Mortgage-backed securities - non-agency	35,401		—		35,401		—
State and municipal securities	144,541		—		144,541		—
Corporate securities	203,733		—		202,725		1,008
Equity securities	9,506		9,506		—		—
Loans held for sale	12,187		—		12,187		—
Derivative assets	7,095		—		7,095		—

Total	$	776,113	$	9,831	$	765,274	$	1,008
Liabilities
Derivative liabilities	$	548	$	—	$	548	$	—

Total	$	548	$	—	$	548	$	—

Assets measured at fair value on a non-recurring basis:
Loan servicing rights	$	34,577	$	—	$	—	$	34,577
Mortgage servicing rights held for sale	780		—		—		780
Nonperforming loans	9,426		120		9,306		—
Other real estate owned	1,372		—		1,372		—
Assets held for sale	2,842		—		2,842		—


	December 31, 2020
(dollars in thousands)	Carrying amount		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		—
Derivative assets	3,423		—		3,423		—

Total	$	827,648	$	9,424	$	817,265	$	959
Liabilities
Derivative liabilities	$	1,112	$	—	$	1,112	$	—

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		—

Schedule Presenting Activity for Assets Measured at Fair Value on a Recurring Basis using Significant Unobservable Inputs (Level 3)

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 three and six months ended June 30, 2021 and 2020:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Balance, beginning of period	$	959	$	925	$	959	$	955
Total realized in earnings (1)	4		5		6		8
Total unrealized in other comprehensive income (2)	49		(4)		49		(34)
Net settlements (principal and interest)	(4)		(5)		(6)		(8)
Balance, end of period	$	1,008	$	921	$	1,008	$	921

(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.

Schedule Presents Quantitative Information about Significant Unobservable Inputs

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 June 30, 2021 and December 31, 2020:

(dollars in thousands)

Fair value

Valuation
technique

Unobservable
input / assumptions

Range (weighted average)(1)

June 30, 2021

Corporate securities

1,008

Consensus pricing

Net market price

0.0% - 5.1% (2.6)%

December 31, 2020

Corporate securities

959

Consensus pricing

Net market price

(2.0)% - 4.9% (2.0)%

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

Schedule of Losses Recognized on Assets Measured on a Non-recurring Basis

The following table presents losses recognized on assets measured on a nonrecurring basis for the three and six months ended June 30, 2021 and 2020:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Loan servicing rights	$	1,148	$	107	$	2,423	$	8,575
Mortgage servicing rights held for sale	143		391		143		887
Nonperforming loans	4,295		3,295		6,272		16,214
Other real estate owned	314		652		417		1,257
Assets held for sale	—		60		—		206
Total losses on assets measured on a nonrecurring basis	$	5,900	$	4,505	$	9,255	$	27,139

Schedule Presents Quantitative Information about Significant Unobservable Inputs used in Fair Value Measurements of Non-recurring Assets (Level 3)

The following tables present quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured on a nonrecurring basis at June 30, 2021 and December 31, 2020:

(dollars in thousands)

Fair value

Valuation
technique

Unobservable
input / assumptions

Range (weighted average)(1)

June 30, 2021

Loan servicing rights:

Commercial MSR

34,255

Discounted cash flow

Prepayment speed

8.00% - 18.00% (8.20%)

Discount rate

10.00% - 27.00% (11.54%)

SBA servicing rights

845

Discounted cash flow

Prepayment speed

12.65% - 14.20% (13.01%)

Discount rate

10.00% - 12.00% (11.00%)

MSR held for sale

780

Discounted cash flow

Prepayment speed

14.28% -30.42% (17.46%)

Discount rate

9.00% - 11.50% (10.13%)

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%)

Other:

Nonperforming loans

1,279

Fair value of collateral

Discount for type of property,

5.76% - 6.43% (6.14%)

age of appraisal and current status

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

Schedule of the Fair Value Option for Newly Originated Residential and Commercial Loans Held for Sale

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 as of June 30, 2021 and December 31, 2020:


	June 30, 2021						December 31, 2020
(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
Residential loans held for sale	12,187		717		11,470		11,967		743		11,224

Total loans held for sale	$	12,187	$	717	$	11,470	$	138,090	$	810	$	137,280

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 three and six months ended June 30, 2021 and 2020:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Commercial loans held for sale	$	(23)	$	276	$	(67)	$	118
Residential loans held for sale	320		414		(63)		669
Total loans held for sale	$	297	$	690	$	(130)	$	787

Schedule Presentation of Summary of the Carrying Values and Fair Value Estimates of Certain Financial Instruments

The carrying values and estimated fair value of certain financial instruments not carried at fair value at June 30, 2021 and December 31, 2020 were as follows:


	June 30, 2021
(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	$	418,782	$	418,782	$	418,782	$	—	$	—
Federal funds sold	6,318		6,318		6,318		—		—

Loans, net	4,777,202		4,878,116		—		—		4,878,116
Accrued interest receivable	22,623		22,623		—		22,623		—

Liabilities
Deposits	$	5,196,351	$	5,201,056	$	—	$	5,201,056	$	—
Short-term borrowings	75,985		75,985		—		75,985		—
FHLB and other borrowings	440,171		456,971		—		456,971		—
Subordinated debt	138,906		148,763		—		148,763		—
Trust preferred debentures	49,094		54,984		—		54,984		—


	December 31, 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		—		—

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		—

- 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

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Investment securities, available-for-sale, allowance for credit loss	$ 326	$ 366
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	22,380,492	22,325,471
Common stock, shares outstanding (in shares)	22,380,492	22,325,471

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2021	Jul. 23, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
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
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		22,395,002
Entity Central Index Key	0001466026
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2

INVESTMENT SECURITIES - Allowance for credit loss and unrealized losses and fair values (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Allowance for credit losses on investment securities available-for-sale
Beginning balance	$ 516	$ 75	$ 366	$ 0
Current-period provision for expected credit losses	(190)	52	(40)	127
Ending balance	326	127	326	127
Fair value
Less than 12 Months, Fair value	223,670		223,670		$ 56,085
Less than 12 Months, Unrealized loss	5,899		5,899		666
12 Months or more, Fair value	0		0		0
12 Months or more, Unrealized loss	0		0		0
Total, Fair value	223,670		223,670		56,085
Total, Unrealized loss	5,899		5,899		666
U.S. government sponsored entities and U.S. agency securities
Allowance for credit losses on investment securities available-for-sale
Beginning balance			0
Ending balance	0		0
Fair value
Less than 12 Months, Fair value	17,285		17,285		9,903
Less than 12 Months, Unrealized loss	465		465		97
12 Months or more, Fair value	0		0		0
12 Months or more, Unrealized loss	0		0		0
Total, Fair value	17,285		17,285		9,903
Total, Unrealized loss	465		465		97
Mortgage-backed securities - agency
Allowance for credit losses on investment securities available-for-sale
Beginning balance			0
Ending balance	0		0
Fair value
Less than 12 Months, Fair value	172,022		172,022		26,172
Less than 12 Months, Unrealized loss	3,260		3,260		47
12 Months or more, Fair value	0		0		0
12 Months or more, Unrealized loss	0		0		0
Total, Fair value	172,022		172,022		26,172
Total, Unrealized loss	3,260		3,260		47
Mortgage-backed securities - non-agency
Allowance for credit losses on investment securities available-for-sale
Beginning balance	28	0	0	0
Current-period provision for expected credit losses	85	0	113	0
Ending balance	113	0	113	0
Fair value
Less than 12 Months, Fair value	0		0		0
Less than 12 Months, Unrealized loss	0		0		0
12 Months or more, Fair value	0		0		0
12 Months or more, Unrealized loss	0		0		0
Total, Fair value	0		0		0
Total, Unrealized loss	0		0		0
State and municipal securities
Allowance for credit losses on investment securities available-for-sale
Beginning balance	28	19	29	0
Current-period provision for expected credit losses	(28)	(18)	(29)	1
Ending balance	0	1	0	1
Fair value
Less than 12 Months, Fair value	15,993		15,993		0
Less than 12 Months, Unrealized loss	174		174		0
12 Months or more, Fair value	0		0		0
12 Months or more, Unrealized loss	0		0		0
Total, Fair value	15,993		15,993		0
Total, Unrealized loss	174		174		0
Corporate securities
Allowance for credit losses on investment securities available-for-sale
Beginning balance	460	56	337	0
Current-period provision for expected credit losses	(247)	70	(124)	126
Ending balance	213	$ 126	213	$ 126
Fair value
Less than 12 Months, Fair value	18,370		18,370		20,010
Less than 12 Months, Unrealized loss	2,000		2,000		522
12 Months or more, Fair value	0		0		0
12 Months or more, Unrealized loss	0		0		0
Total, Fair value	18,370		18,370		20,010
Total, Unrealized loss	$ 2,000		$ 2,000		$ 522

LOANS

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

LOANS

The following table presents total loans outstanding by portfolio class, as of June 30, 2021 and December 31, 2020:


(dollars in thousands)	June 30, 2021		December 31, 2020
Commercial:
Commercial	$	719,642	$	937,382
Commercial other	704,438		748,193
Commercial real estate:
Commercial real estate non-owner occupied	908,787		871,451
Commercial real estate owner occupied	440,722		423,257
Multi-family	116,176		151,534
Farmland	74,804		79,731
Construction and land development	212,508		172,737
Total commercial loans	3,177,077		3,384,285
Residential real estate:
Residential first lien	296,256		358,329
Other residential	70,356		84,551
Consumer:
Consumer	74,627		80,642
Consumer other	810,389		785,460
Lease financing	407,161		410,064
Total loans, gross	$	4,835,866	$	5,103,331

Total loans include net deferred loan costs of $0.8 million and $0.7 million at June 30, 2021 and December 31, 2020, respectively, and unearned income of $45.5 million and $46.5 million within the lease financing portfolio as of the same dates.

At June 30, 2021, the Company had residential real estate loans held for sale totaling $12.2 million compared to commercial real estate and residential real estate loans held for sale totaling $138.1 million at December 31, 2020. The Company sold commercial real estate, residential real estate and consumer loans with proceeds totaling $161.9 million and $494.5 million during the three and six months ended June 30, 2021, respectively, and $358.1 million and $470.3 million during the comparable periods in 2020, 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 allowance for credit losses 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. Paycheck Protection Program ("PPP") loans of $146.7 million and $184.4 million as of June 30, 2021 and December 31, 2020, respectively, 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 $18.8 million and $19.7 million at June 30, 2021 and December 31, 2020, respectively. The new loans, other additions, repayments and other reductions with respect to such persons for the three and six months ended June 30, 2021 and 2020, are summarized as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Beginning balance	$	19,372	$	21,735	$	19,693	$	22,989
New loans and other additions	404		2,462		1,024		2,542
Repayments and other reductions	(1,014)		(391)		(1,955)		(1,725)
Ending balance	$	18,762	$	23,806	$	18,762	$	23,806

The following table represents, by loan portfolio segment, a summary of changes in the allowance for credit losses on loans for the three and six months ended June 30, 2021 and 2020:


	Commercial Loan Portfolio						Other Loan Portfolio
(dollars in thousands)	Commercial		Commercial real estate		Construction and land development		Residential real estate		Consumer		Lease financing		Total
Changes in allowance for credit losses on loans for the three months ended June 30, 2021:
Balance, beginning of period	$	17,339	$	31,821	$	1,239	$	3,981	$	2,271	$	6,036	$	62,687
Provision for credit losses on loans	5		(168)		414		(177)		84		(158)		—
Charge-offs	(2,634)		(946)		(1)		(141)		(218)		(516)		(4,456)
Recoveries	139		11		81		20		155		27		433
Balance, end of period	$	14,849	$	30,718	$	1,733	$	3,683	$	2,292	$	5,389	$	58,664

Changes in allowance for credit losses on loans for the six months ended June 30, 2021:
Balance, beginning of period	$	19,851	$	25,465	$	1,433	$	3,929	$	2,338	$	7,427	$	60,443
Provision for credit losses on loans	(2,016)		6,959		425		(109)		137		(1,446)		3,950
Charge-offs	(3,140)		(1,719)		(272)		(251)		(460)		(769)		(6,611)
Recoveries	154		13		147		114		277		177		882
Balance, end of period	$	14,849	$	30,718	$	1,733	$	3,683	$	2,292	$	5,389	$	58,664

Changes in allowance for credit losses on loans for the three months ended June 30, 2020:
Balance, beginning of period	$	11,740	$	13,583	$	1,321	$	4,638	$	1,954	$	5,309	$	38,545
Provision for credit losses on loans	889		8,388		248		153		316		1,616		11,610
Charge-offs	(452)		(1,746)		(62)		(7)		(366)		(838)		(3,471)
Recoveries	36		71		5		46		183		68		409
Balance, end of period	$	12,213	$	20,296	$	1,512	$	4,830	$	2,087	$	6,155	$	47,093

Changes in allowance for credit losses on loans for the six months ended June 30, 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	2,619		14,143		(301)		410		572		4,736		22,179
Charge-offs	(3,850)		(9,619)		(74)		(395)		(964)		(1,786)		(16,688)
Recoveries	41		85		64		90		374		137		791
Balance, end of period	$	12,213	$	20,296	$	1,512	$	4,830	$	2,087	$	6,155	$	47,093

The Company utilizes a combination of models which measure probability of default ("PD") and loss given default ("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 determines 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, unemployment rates, 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.

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 amortized cost basis of individually evaluated loans on nonaccrual status as of June 30, 2021 and December 31, 2020:


	June 30, 2021						December 31, 2020
(dollars in thousands)	Nonaccrual with allowance		Nonaccrual with no allowance		Total nonaccrual		Nonaccrual with allowance		Nonaccrual with no allowance		Total nonaccrual
Commercial:
Commercial	$	5,232	$	4,890	$	10,122	$	3,498	$	—	$	3,498
Commercial other	4,054		—		4,054		2,634		—		2,634
Commercial real estate:
Commercial real estate non-owner occupied	6,706		14,065		20,771		5,509		3,823		9,332
Commercial real estate owner occupied	2,514		2,135		4,649		3,598		3,227		6,825
Multi-family	1,394		996		2,390		7,921		2,325		10,246

Construction and land development	1,302		—		1,302		2,131		693		2,824
Total commercial loans	21,202		22,086		43,288		25,291		10,068		35,359
Residential real estate:
Residential first lien	7,252		1,053		8,305		8,534		1,071		9,605
Other residential	2,306		—		2,306		2,437		—		2,437
Consumer:
Consumer	185		—		185		262		—		262

Lease financing	2,797		—		2,797		1,965		—		1,965
Total loans	$	33,742	$	23,139	$	56,881	$	38,489	$	11,139	$	49,628

There was no interest income recognized on nonaccrual loans during the three and six months ended June 30, 2021 and 2020 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 $0.7 million and $1.4 million for the three and six months ended June 30, 2021, respectively, and $1.1 million and $1.9 million for the three and six months ended June 30, 2020, respectively. The Company recognized interest income on commercial and commercial real estate loans modified under troubled debt restructurings of $20,000 and $72,000 for the three and six months ended June 30, 2021, respectively, and $9,000 and $29,000 for the three and six months ended June 30, 2020, respectively.

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 June 30, 2021 and December 31, 2020:


	Type of Collateral
(dollars in thousands)	Real Estate		Blanket Lien		Equipment		Total
June 30, 2021
Commercial
Commercial	$	—	$	7,518	$	—	$	7,518

Commercial Real Estate
Non-Owner Occupied	20,481		—		—		20,481
Owner Occupied	2,132		—		—		2,132
Multi-Family	2,290		—		—		2,290



Lease financing	—		—		468		468
Total Collateral Dependent Loans	$	24,903	$	7,518	$	468	$	32,889

December 31, 2020



Commercial Real Estate
Non-Owner Occupied	$	8,159	$	—	$	—	$	8,159

Multi-Family	10,121		—		—		10,121
Construction and Land Development	693		—		—		693



Total Collateral Dependent Loans	$	18,973	$	—	$	—	$	18,973

The aging status of the recorded investment in loans by portfolio as of June 30, 2021 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		Nonaccrual		Current		Total
Commercial:
Commercial	$	1,255	$	63	$	—	$	1,318	$	10,122	$	708,202	$	719,642
Commercial other	6,048		1,860		—		7,908		4,054		692,476		704,438
Commercial real estate:
Commercial real estate non-owner occupied	598		452		55		1,105		20,771		886,911		908,787
Commercial real estate owner occupied	1,091		—		—		1,091		4,649		434,982		440,722
Multi-family	59		—		—		59		2,390		113,727		116,176
Farmland	242		—		—		242		—		74,562		74,804
Construction and land development	400		—		—		400		1,302		210,806		212,508
Total commercial loans	9,693		2,375		55		12,123		43,288		3,121,666		3,177,077
Residential real estate:
Residential first lien	94		779		—		873		8,305		287,078		296,256
Other residential	24		43		25		92		2,306		67,958		70,356
Consumer:
Consumer	78		168		—		246		185		74,196		74,627
Consumer other	2,914		1,874		—		4,788		—		805,601		810,389
Lease financing	1,801		381		—		2,182		2,797		402,182		407,161
Total loans	$	14,604	$	5,620	$	80	$	20,304	$	56,881	$	4,758,681	$	4,835,866

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		Nonaccrual		Current		Total
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

Troubled Debt Restructurings ("TDRs")

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, as amended by Section 541 of the Consolidated Appropriations Act, provides all banks with the option to elect either or both of the following from March 1, 2020 until the earlier of January 1, 2022 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.

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 $107.3 million and $209.1 million at June 30, 2021 and December 31, 2020, respectively.


	June 30, 2021						December 31, 2020
(dollars in thousands)	Accruing (1)		Non-accrual (2)		Total		Accruing (1)		Non-accrual (2)		Total
Commercial	$	795	$	827	$	1,622	$	967	$	558	$	1,525
Commercial real estate	2,282		3,863		6,145		866		4,314		5,180
Construction and land development	35		396		431		39		909		948
Residential real estate	706		3,918		4,624		988		3,705		4,693
Consumer	79		—		79		41		—		41
Lease financing	505		31		536		—		38		38
Total loans	$	4,402	$	9,035	$	13,437	$	2,901	$	9,524	$	12,425

(1)These loans are still accruing interest.

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

The allowance for credit losses on TDRs totaled $0.9 million and $0.8 million as of June 30, 2021 and December 31, 2020, respectively. The Company had no unfunded commitments in connection with TDRs at June 30, 2021 and December 31, 2020.


	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 three months ended June 30, 2021
Troubled debt restructurings:
Number of loans	5		1		—		1		1		1		9
Pre-modification outstanding balance	$	609	$	1,432	$	—	$	136	$	19	$	505	$	2,701
Post-modification outstanding balance	609		1,432		—		139		19		505		2,704





For the six months ended June 30, 2021
Troubled debt restructurings:
Number of loans	5		1		1		3		3		1		14
Pre-modification outstanding balance	$	609	$	1,432	$	49	$	191	$	50	$	505	$	2,836
Post-modification outstanding balance	609		1,432		40		195		50		505		2,831





For the three months ended June 30, 2020
Troubled debt restructurings:
Number of loans	2		2		2		5		—		—		11
Pre-modification outstanding balance	$	432	$	633	$	484	$	343	$	—	$	—	$	1,892
Post-modification outstanding balance	431		606		472		233		—		—		1,742





For the six months ended June 30, 2020
Troubled debt restructurings:
Number of loans	2		2		2		11		—		—		17
Pre-modification outstanding balance	$	432	$	633	$	484	$	1,018	$	—	$	—	$	2,567
Post-modification outstanding balance	431		606		472		903		—		—		2,412

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, which includes commercial, commercial real estate and construction and land development loans. 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 of 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 and monitored 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 June 30, 2021 and December 31, 2020:


			June 30, 2021
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2021		2020		2019		2018		2017		Prior		Revolving loans		Total
Commercial	Commercial	Acceptable credit quality	$	41,515	$	90,431	$	73,288	$	27,900	$	26,192	$	54,717	$	368,714	$	682,757
		Special mention	260		11		326		1,958		21		165		279		3,020
		Substandard	148		613		1,569		2,226		3,639		8,873		6,675		23,743
		Substandard – nonaccrual	55		—		115		710		517		406		8,319		10,122
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	41,978		91,055		75,298		32,794		30,369		64,161		383,987		719,642

	Commercial other	Acceptable credit quality	184,797		242,848		129,947		40,644		463		312		75,626		674,637
		Special mention	—		2,096		11,437		4,299		6		—		3,392		21,230
		Substandard	160		13		57		913		—		—		3,254		4,397
		Substandard – nonaccrual	—		261		3,005		784		—		—		4		4,054
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	120		—		—		—		—		—		—		120
		Subtotal	185,077		245,218		144,446		46,640		469		312		82,276		704,438

Commercial real estate	Non-owner occupied	Acceptable credit quality	144,795		171,142		102,730		39,029		73,057		185,287		5,244		721,284
		Special mention	27		37		9,910		4,214		347		22,588		4,036		41,159
		Substandard	3,985		9,674		14,562		19,843		23,120		53,986		403		125,573
		Substandard – nonaccrual	199		119		6,358		—		—		14,095		—		20,771
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	149,006		180,972		133,560		63,086		96,524		275,956		9,683		908,787

	Owner occupied	Acceptable credit quality	68,449		68,216		52,151		34,320		46,633		124,031		2,521		396,321
		Special mention	—		1,301		2,450		223		—		7,881		—		11,855
		Substandard	—		4,574		8,196		996		529		13,288		314		27,897
		Substandard – nonaccrual	—		543		198		436		85		3,387		—		4,649
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	68,449		74,634		62,995		35,975		47,247		148,587		2,835		440,722

	Multi-family	Acceptable credit quality	48,839		7,351		3,823		2,780		1,892		24,769		2,218		91,672
		Special mention	—		458		—		8,380		—		1,306		—		10,144
		Substandard	1,013		—		184		514		—		10,259		—		11,970
		Substandard – nonaccrual	—		—		—		—		—		2,390		—		2,390
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	49,852		7,809		4,007		11,674		1,892		38,724		2,218		116,176

	Farmland	Acceptable credit quality	12,112		16,635		4,484		4,066		8,336		21,642		1,600		68,875
		Special mention	—		237		1,365		167		—		282		—		2,051
		Substandard	647		239		146		318		121		2,206		201		3,878
		Substandard – nonaccrual	—		—		—		—		—		—		—		—
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	12,759		17,111		5,995		4,551		8,457		24,130		1,801		74,804

Construction and land development		Acceptable credit quality	20,102		71,273		56,003		25,805		2,856		4,909		14,644		195,592
		Special mention	—		—		4,319		643		—		—		—		4,962
		Substandard	—		1,336		8,875		—		—		—		—		10,211
		Substandard – nonaccrual	—		—		69		—		—		1,233		—		1,302
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	223		218		—		—		—		—		—		441
		Subtotal	20,325		72,827		69,266		26,448		2,856		6,142		14,644		212,508

Total		Acceptable credit quality	520,609		667,896		422,426		174,544		159,429		415,667		470,567		2,831,138
		Special mention	287		4,140		29,807		19,884		374		32,222		7,707		94,421
		Substandard	5,953		16,449		33,589		24,810		27,409		88,612		10,847		207,669
		Substandard – nonaccrual	254		923		9,745		1,930		602		21,511		8,323		43,288
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	343		218		—		—		—		—		—		561
Total commercial loans			$	527,446	$	689,626	$	495,567	$	221,168	$	187,814	$	558,012	$	497,444	$	3,177,077


			December 31, 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

The Company evaluates the credit quality of its other loan portfolios, 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 as of June 30, 2021 and December 31, 2020:


			June 30, 2021
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
Residential real estate	Residential first lien	Performing	$	65,471	$	37,060	$	25,746	$	34,980	$	14,745	$	108,864	$	508	$	287,374
		Nonperforming	999		1,044		190		—		—		6,649		—		8,882
		Subtotal	66,470		38,104		25,936		34,980		14,745		115,513		508		296,256

	Other residential	Performing	1,705		2,552		2,054		801		329		2,525		57,930		67,896
		Nonperforming	137		19		12		—		—		154		2,138		2,460
		Subtotal	1,842		2,571		2,066		801		329		2,679		60,068		70,356

Consumer	Consumer	Performing	5,775		12,543		11,820		20,363		15,258		4,486		4,118		74,363
		Nonperforming	65		11		4		46		30		102		6		264
		Subtotal	5,840		12,554		11,824		20,409		15,288		4,588		4,124		74,627

	Consumer other	Performing	251,750		437,735		77,825		15,362		4,761		6,764		16,192		810,389
		Nonperforming	—		—		—		—		—		—		—		—
		Subtotal	251,750		437,735		77,825		15,362		4,761		6,764		16,192		810,389

Leases financing		Performing	6,826		50,476		107,577		152,279		80,679		6,022		—		403,859
		Nonperforming	—		389		886		1,670		234		123		—		3,302
		Subtotal	6,826		50,865		108,463		153,949		80,913		6,145		—		407,161

Total		Performing	331,527		540,366		225,022		223,785		115,772		128,661		78,748		1,643,881
		Nonperforming	1,201		1,463		1,092		1,716		264		7,028		2,144		14,908
Total other loans			$	332,728	$	541,829	$	226,114	$	225,501	$	116,036	$	135,689	$	80,892	$	1,658,789


			December 31, 2020
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			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

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring basis (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Assets
Investment securities available for sale	$ 747,325		$ 747,325		$ 676,711
Equity securities recorded at fair value	9,506		9,506		9,424
Loans held for sale	12,187		12,187		138,090
Losses recognized on assets measured on non-recurring basis
Loan servicing rights	(1,148)	$ (107)	(2,423)	$ (8,575)
Mortgage servicing rights held for sale			(143)	(887)
Assets held for sale			0	(206)
U.S. Treasury securities
Assets
Investment securities available for sale	325		325
U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	53,033		53,033		35,567
Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	35,401		35,401		20,744
State and municipal securities
Assets
Investment securities available for sale	144,541		144,541		129,765
Corporate securities
Assets
Investment securities available for sale	203,733		203,733		146,058
Recurring member
Assets
Loans held for sale	12,187		12,187		138,090
Derivative assets	7,095		7,095		3,423
Total	776,113		776,113		827,648
Liabilities
Derivative liabilities	548		548		1,112
Total	548		548		1,112
Recurring member \| U.S. Treasury securities
Assets
Investment securities available for sale	325		325
Recurring member \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	53,033		53,033		35,567
Recurring member \| Mortgage-backed securities - agency
Assets
Investment securities available for sale	310,292		310,292		344,577
Recurring member \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	35,401		35,401		20,744
Recurring member \| State and municipal securities
Assets
Investment securities available for sale	144,541		144,541		129,765
Recurring member \| Corporate securities
Assets
Investment securities available for sale	203,733		203,733		146,058
Recurring member \| Equity securities
Assets
Equity securities recorded at fair value	9,506		9,506		9,424
Recurring member \| Level 1
Assets
Loans held for sale	0		0		0
Derivative assets	0		0		0
Total	9,831		9,831		9,424
Liabilities
Derivative liabilities	0		0		0
Total	0		0		0
Recurring member \| Level 1 \| U.S. Treasury securities
Assets
Investment securities available for sale	325		325
Recurring member \| Level 1 \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 1 \| Mortgage-backed securities - agency
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 1 \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 1 \| State and municipal securities
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 1 \| Corporate securities
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 1 \| Equity securities
Assets
Equity securities recorded at fair value	9,506		9,506		9,424
Recurring member \| Level 2
Assets
Loans held for sale	12,187		12,187		138,090
Derivative assets	7,095		7,095		3,423
Total	765,274		765,274		817,265
Liabilities
Derivative liabilities	548		548		1,112
Total	548		548		1,112
Recurring member \| Level 2 \| U.S. Treasury securities
Assets
Investment securities available for sale	0		0
Recurring member \| Level 2 \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	53,033		53,033		35,567
Recurring member \| Level 2 \| Mortgage-backed securities - agency
Assets
Investment securities available for sale	310,292		310,292		344,577
Recurring member \| Level 2 \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	35,401		35,401		20,744
Recurring member \| Level 2 \| State and municipal securities
Assets
Investment securities available for sale	144,541		144,541		129,765
Recurring member \| Level 2 \| Corporate securities
Assets
Investment securities available for sale	202,725		202,725		145,099
Recurring member \| Level 2 \| Equity securities
Assets
Equity securities recorded at fair value	0		0		0
Recurring member \| Level 3
Assets
Loans held for sale	0		0		0
Derivative assets	0		0		0
Total	1,008		1,008		959
Liabilities
Derivative liabilities	0		0		0
Total	0		0		0
Recurring member \| Level 3 \| U.S. Treasury securities
Assets
Investment securities available for sale	0		0
Recurring member \| Level 3 \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 3 \| Mortgage-backed securities - agency
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 3 \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 3 \| State and municipal securities
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 3 \| Corporate securities
Assets
Investment securities available for sale	1,008		1,008		959
Recurring member \| Level 3 \| Equity securities
Assets
Equity securities recorded at fair value	0		0		0
Non recurring member
Assets measured at fair value on a non-recurring basis:
Loan servicing rights	34,577		34,577		39,276
Mortgage servicing rights held for sale	780		780		878
Nonperforming loans	9,426		9,426		13,333
Other real estate owned	1,372		1,372		20,247
Assets held for sale	2,842		2,842		4,157
Losses recognized on assets measured on non-recurring basis
Loan servicing rights	1,148	107	2,423	8,575
Mortgage servicing rights held for sale	143	391	143	887
Nonperforming loans	4,295	3,295	6,272	16,214
Other real estate owned	314	652	417	1,257
Assets held for sale	0	60	0	206
Total loss on assets measured on a nonrecurring basis	5,900	$ 4,505	9,255	$ 27,139
Non recurring member \| Level 1
Assets measured at fair value on a non-recurring basis:
Loan servicing rights	0		0		0
Mortgage servicing rights held for sale	0		0		0
Nonperforming loans	120		120		0
Other real estate owned	0		0		0
Assets held for sale	0		0		0
Non recurring member \| Level 2
Assets measured at fair value on a non-recurring basis:
Loan servicing rights	0		0		0
Mortgage servicing rights held for sale	0		0		0
Nonperforming loans	9,306		9,306		12,054
Other real estate owned	1,372		1,372		20,247
Assets held for sale	2,842		2,842		4,157
Non recurring member \| Level 3
Assets measured at fair value on a non-recurring basis:
Loan servicing rights	34,577		34,577		39,276
Mortgage servicing rights held for sale	780		780		878
Nonperforming loans	0		0		1,279
Other real estate owned	0		0		0
Assets held for sale	$ 0		$ 0		$ 0

INVESTMENT SECURITIES (Tables)

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of Investment Securities Classified as Available for Sale

Investment securities available for sale at June 30, 2021 and December 31, 2020 were as follows:


	June 30, 2021
(dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Allowance for credit losses		Fair value
Investment securities available for sale
U.S. Treasury securities	$	325	$	—	$	—	$	—	$	325
U.S. government sponsored entities and U.S. agency securities	53,310		188		465		—		53,033
Mortgage-backed securities - agency	309,838		3,714		3,260		—		310,292
Mortgage-backed securities - non-agency	35,523		116		125		113		35,401
State and municipal securities	138,337		6,378		174		—		144,541
Corporate securities	201,547		4,399		2,000		213		203,733
Total available for sale securities	$	738,880	$	14,795	$	6,024	$	326	$	747,325


	December 31, 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 available for sale securities	$	661,713	$	16,510	$	1,146	$	366	$	676,711

Debt Securities, Available-for-sale

The following is a summary of the amortized cost and fair value of the investment securities available for sale, by maturity, at June 30, 2021. 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	$	17,952	$	18,175
After one year through five years	67,222		69,386
After five years through ten years	267,073		271,472
After ten years	41,272		42,599
Mortgage-backed securities	345,361		345,693
Total available for sale securities	$	738,880	$	747,325

Proceeds and gross realized gains on sales of investment securities available for sale for the three and six months ended June 30, 2021 and 2020, are summarized as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Investment securities available for sale
Proceeds from sales	$	12,617	$	—	$	12,617	$	—
Gross realized gains on sales	377		—		377		—

Allowance for Credit Loss Rollforward

The table below presents a rollforward by security type for the three and six months ended June 30, 2021 and 2020 of the allowance for credit losses on investment securities available for sale held at period end:


(dollars in thousands)	Mortgage-backed securities - non-agency		State and municipal securities		Corporate securities		Total
Changes in allowance for credit losses on investment securities available for sale:
For the three months ended June 30, 2021
Balance, beginning of period	$	28	$	28	$	460	$	516
Current-period provision for expected credit losses	85		(28)		(247)		(190)
Balance, end of period	$	113	$	—	$	213	$	326
For the six months ended June 30, 2021
Balance, beginning of period	$	—	$	29	$	337	$	366
Current-period provision for expected credit losses	113		(29)		(124)		(40)
Balance, end of period	$	113	$	—	$	213	$	326
For the three months ended June 30, 2020
Balance, beginning of period	$	—	$	19	$	56	$	75
Current-period provision for expected credit losses	—		(18)		70		52
Balance, end of period	$	—	$	1	$	126	$	127
For the six months ended June 30, 2020
Balance, beginning of period	$	—	$	—	$	—	$	—
Current-period provision for expected credit losses	—		1		126		127
Balance, end of period	$	—	$	1	$	126	$	127

Schedule of Unrealized Losses and Fair Values for Investment Securities

Unrealized losses and fair values for investment securities available for sale as of June 30, 2021 and December 31, 2020, for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows:


	June 30, 2021
	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	$	17,285	$	465	$	—	$	—	$	17,285	$	465
Mortgage-backed securities - agency	172,022		3,260		—		—		172,022		3,260
Mortgage-backed securities - non-agency	—		—		—		—		—		—
State and municipal securities	15,993		174		—		—		15,993		174
Corporate securities	18,370		2,000		—		—		18,370		2,000
Total available for sale securities	$	223,670	$	5,899	$	—	$	—	$	223,670	$	5,899


	December 31, 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 available for sale securities	$	56,085	$	666	$	—	$	—	$	56,085	$	666

GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Goodwill [Line Items]
Goodwill	$ 161,904	$ 161,904
Banking
Goodwill [Line Items]
Goodwill	157,158	157,158
Wealth management
Goodwill [Line Items]
Goodwill	$ 4,746	$ 4,746

EARNINGS PER SHARE - Narrative (Details) - shares	3 Months Ended		6 Months Ended
EARNINGS PER SHARE - Narrative (Details) - shares	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Stock option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	71,547	580,912	71,547	319,335

SUBORDINATED DEBT (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
SUBORDINATED DEBT (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Subordinated Borrowing [Line Items]
Carrying amount	$ 138,906	$ 138,906		$ 169,795
Repayments of subordinated debt		31,075	$ 7,250
6.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Carrying amount	0	0		$ 31,075
Effective interest rate				4.59%
Repayments of subordinated debt	31,100
6.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Carrying amount	$ 546	$ 546		$ 545
Fixed interest rate	6.50%	6.50%		6.50%
Face amount	$ 550	$ 550		$ 550
6.25% Subordinated Debt
Subordinated Borrowing [Line Items]
Carrying amount	$ 39,593	$ 39,593		$ 39,561
Fixed interest rate	6.25%	6.25%		6.25%
Face amount	$ 40,000	$ 40,000		$ 40,000
5.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Carrying amount	$ 71,914	$ 71,914		$ 71,785
Fixed interest rate	5.00%	5.00%		5.00%
Face amount	$ 72,750	$ 72,750		$ 72,750
5.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Carrying amount	$ 26,853	$ 26,853		$ 26,829
Fixed interest rate	5.50%	5.50%		5.50%
Face amount	$ 27,250	$ 27,250		$ 27,250
LIBOR \| 6.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Variable interest rate				4.35%
LIBOR \| 6.25% Subordinated Debt
Subordinated Borrowing [Line Items]
Variable interest rate		4.23%		4.23%
Three month SOFR \| 5.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Variable interest rate		3.61%		3.61%
Three month SOFR \| 5.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Variable interest rate		4.05%		4.05%

LOAN SERVICING RIGHTS

6 Months Ended

Jun. 30, 2021

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 $3.15 billion and $3.50 billion at June 30, 2021 and December 31, 2020, respectively. Changes in our commercial FHA loan servicing rights for the three and six months ended June 30, 2021 and 2020 are summarized as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Loan servicing rights:
Balance, beginning of period	$	35,997	$	56,909	$	38,322	$	57,637
Originated servicing	—		657		—		657
Amortization	(780)		(815)		(1,563)		(1,543)
Refinancing fee received from third party	(337)		—		(604)		—
Permanent impairment	(1,148)		—		(2,423)		—
Balance, end of period	33,732		56,751		33,732		56,751
Valuation allowances:
Balance, beginning of period	—		13,412		—		4,944
Additions	—		107		—		8,575
Reductions	—		—		—		—
Balance, end of period	—		13,519		—		13,519
Loan servicing rights, net	$	33,732	$	43,232	$	33,732	$	43,232
Fair value:
At beginning of period	$	35,997	$	43,497	$	38,322	$	52,693
At end of period	$	34,255	$	43,232	$	34,255	$	43,232

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 8.20% and 8.18% at June 30, 2021 and December 31, 2020, respectively, while the weighted average discount rate was 11.54% and 11.48% for the same periods, respectively.

United States Small Business Administration (“SBA”) Loan Servicing

At June 30, 2021 and December 31, 2020, the Company serviced SBA loans for others with unpaid principal balances of $53.2 million and $49.2 million, respectively. At June 30, 2021 and December 31, 2020, SBA loan servicing rights of $0.8 million and $1.0 million, respectively, are reflected in loan servicing rights in the consolidated balance sheet.

Residential Mortgage Loan Servicing Held for Sale

At June 30, 2021 and December 31, 2020, the Company serviced residential mortgage loans for others with unpaid principal balances of $342.9 million and $382.3 million, respectively. At June 30, 2021 and December 31, 2020, residential mortgage servicing rights of $0.8 million and $0.9 million, respectively, were deemed held for sale and were reflected in other assets in the consolidated balance sheet.

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 30
-Section 50
-Paragraph 1A
-Subparagraph (c)(3)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 860
-SubTopic 50
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=116651436&loc=d3e122596-111746

+ Details

INVESTMENT SECURITIES - Narrative (Details)	Jun. 30, 2021 security
Investments, Debt and Equity Securities [Abstract]
Number of securities in unrealized loss position (in security)	67
Aggregate depreciation percentage	2.57%

FAIR VALUE OF FINANCIAL INSTRUMENTS - Quantitative Information (Details) $ in Thousands	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale	$ 747,325	$ 676,711
Non recurring member
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	34,577	39,276
Impaired loans	$ 9,426	$ 13,333
Level 3 \| Net market price \| Corporate securities \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale, measurement input	0.000	(0.020)
Level 3 \| Net market price \| Corporate securities \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale, measurement input	0.051	0.049
Level 3 \| Net market price \| Corporate securities \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale, measurement input	0.026	0.020
Level 3 \| Recurring member \| Net market price \| Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale	$ 1,008	$ 959
Level 3 \| Non recurring member
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	34,577	39,276
Impaired loans	0	1,279
Level 3 \| Non recurring member \| Discounted cash flow \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	34,255	38,322
Level 3 \| Non recurring member \| Discounted cash flow \| SBA servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	845	954
Level 3 \| Non recurring member \| Discounted cash flow \| MSR held for sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	$ 780	$ 878
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| Commercial MSR \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.0800	0.0800
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| Commercial MSR \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1800	0.1800
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| Commercial MSR \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.0820	0.0818
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| SBA servicing rights \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1265	0.1201
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| SBA servicing rights \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1420	0.1252
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| SBA servicing rights \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1301	0.1225
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| MSR held for sale \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1428	0.1440
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| MSR held for sale \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.3042	0.2628
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| MSR held for sale \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1746	0.2034
Level 3 \| Non recurring member \| Discounted cash flow \| Discount rate \| Commercial MSR \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1000	0.1000
Level 3 \| Non recurring member \| Discounted cash flow \| Discount rate \| Commercial MSR \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.2700	0.2700
Level 3 \| Non recurring member \| Discounted cash flow \| Discount rate \| Commercial MSR \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1154	0.1148
Level 3 \| Non recurring member \| Discounted cash flow \| Discount rate \| SBA servicing rights \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1000
Level 3 \| Non recurring member \| Discounted cash flow \| Discount rate \| SBA servicing rights \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1200
Level 3 \| Non recurring member \| Discounted cash flow \| Discount rate \| SBA servicing rights \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1100	0.1100
Level 3 \| Non recurring member \| Discounted cash flow \| Discount rate \| MSR held for sale \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.0900	0.0900
Level 3 \| Non recurring member \| Discounted cash flow \| Discount rate \| MSR held for sale \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1150	0.1150
Level 3 \| Non recurring member \| Discounted cash flow \| Discount rate \| MSR held for sale \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1013	0.1013
Level 3 \| Non recurring member \| Fair value of collateral \| Nonperforming loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans		$ 1,279
Level 3 \| Non recurring member \| Fair value of collateral \| Discount for type of property, \| Nonperforming loans \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount for type of property, age of appraisal and current status		0.0576
Level 3 \| Non recurring member \| Fair value of collateral \| Discount for type of property, \| Nonperforming loans \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount for type of property, age of appraisal and current status		0.0643
Level 3 \| Non recurring member \| Fair value of collateral \| Discount for type of property, \| Nonperforming loans \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount for type of property, age of appraisal and current status		0.0614

LOANS - TDRs by portfolio - restructured and subsequently defaulted (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($) loan	Jun. 30, 2020 USD ($) loan	Jun. 30, 2021 USD ($) loan	Jun. 30, 2020 USD ($) loan
Troubled debt restructurings:
Number of loans \| loan	9	11	14	17
Pre-modification outstanding balance	$ 2,701	$ 1,892	$ 2,836	$ 2,567
Post-modification outstanding balance	$ 2,704	$ 1,742	$ 2,831	$ 2,412
Commercial Loan Portfolio \| Commercial
Troubled debt restructurings:
Number of loans \| loan	5	2	5	2
Pre-modification outstanding balance	$ 609	$ 432	$ 609	$ 432
Post-modification outstanding balance	$ 609	$ 431	$ 609	$ 431
Commercial Loan Portfolio \| Commercial real estate
Troubled debt restructurings:
Number of loans \| loan	1	2	1	2
Pre-modification outstanding balance	$ 1,432	$ 633	$ 1,432	$ 633
Post-modification outstanding balance	$ 1,432	$ 606	$ 1,432	$ 606
Commercial Loan Portfolio \| Construction and land development
Troubled debt restructurings:
Number of loans \| loan	0	2	1	2
Pre-modification outstanding balance	$ 0	$ 484	$ 49	$ 484
Post-modification outstanding balance	$ 0	$ 472	$ 40	$ 472
Residential Portfolio Segment \| Residential real estate
Troubled debt restructurings:
Number of loans \| loan	1	5	3	11
Pre-modification outstanding balance	$ 136	$ 343	$ 191	$ 1,018
Post-modification outstanding balance	$ 139	$ 233	$ 195	$ 903
Consumer \| Consumer
Troubled debt restructurings:
Number of loans \| loan	1	0	3	0
Pre-modification outstanding balance	$ 19	$ 0	$ 50	$ 0
Post-modification outstanding balance	$ 19	$ 0	$ 50	$ 0
Lease financing
Troubled debt restructurings:
Number of loans \| loan	1	0	1	0
Pre-modification outstanding balance	$ 505	$ 0	$ 505	$ 0
Post-modification outstanding balance	$ 505	$ 0	$ 505	$ 0

SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATIONOur 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 for the three and six months ended June 30, 2021 and 2020 were as follows:


(dollars in thousands)	Banking		Wealth Management		Other		Total
Three Months Ended June 30, 2021
Net interest income (expense)	$	52,908	$	—	$	(2,798)	$	50,110
Provision for credit losses	(455)		—		—		(455)
Noninterest income	10,868		6,529		20		17,417
Noninterest expense	45,084		4,164		(307)		48,941
Income (loss) before income taxes (benefit)	19,147		2,365		(2,471)		19,041
Income taxes (benefit)	(913)		663		(833)		(1,083)
Net income (loss)	$	20,060	$	1,702	$	(1,638)	$	20,124
Total assets	$	6,644,648	$	29,160	$	(43,798)	$	6,630,010

Six Months Ended June 30, 2021
Net interest income (expense)	$	107,626	$	—	$	(5,648)	$	101,978
Provision for credit losses	3,110		—		—		3,110
Noninterest income	19,732		12,460		41		32,233
Noninterest expense	80,600		8,165		(745)		88,020
Income (loss) before income taxes (benefit)	43,648		4,295		(4,862)		43,081
Income taxes (benefit)	4,876		1,203		(1,660)		4,419
Net income (loss)	$	38,772	$	3,092	$	(3,202)	$	38,662
Total assets	$	6,644,648	$	29,160	$	(43,798)	$	6,630,010

Three Months Ended June 30, 2020
Net interest income (expense)	$	52,050	$	—	$	(3,061)	$	48,989
Provision for credit losses	10,997		—		—		10,997
Noninterest income	10,347		5,698		3,351		19,396
Noninterest expense	36,363		3,442		1,590		41,395
Income (loss) before income taxes (benefit)	15,037		2,256		(1,300)		15,993
Income taxes (benefit)	3,743		205		(524)		3,424
Net income (loss)	$	11,294	$	2,051	$	(776)	$	12,569
Total assets	$	6,564,017	$	22,255	$	58,226	$	6,644,498

Six Months Ended June 30, 2020
Net interest income (expense)	$	101,977	$	—	$	(6,337)	$	95,640
Provision for credit losses	22,575		—		—		22,575
Noninterest income	20,560		11,375		(3,941)		27,994
Noninterest expense	72,428		7,055		3,578		83,061
Income (loss) before income taxes (benefit)	27,534		4,320		(13,856)		17,998
Income taxes (benefit)	7,652		410		(4,182)		3,880
Net income (loss)	$	19,882	$	3,910	$	(9,674)	$	14,118
Total assets	$	6,564,017	$	22,255	$	58,226	$	6,644,498

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 21
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

FHLB ADVANCES AND OTHER BORROWINGS (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 440,171	$ 779,171
FHLB advances, collateral for mortgage and home equity line of credit loans	$ 2,100,000	$ 1,860,000
Series G Preferred Stock
FHLB ADVANCES AND OTHER BORROWINGS
Preferred stock, shares issued (in shares)	171	171
Preferred stock, par value (in dollars per share)	$ 1,000	$ 1,000
Midland States Bancorp, Inc. \| Series G Preferred Stock
FHLB ADVANCES AND OTHER BORROWINGS
Long term debt	$ 171	$ 171
Midland States Bank \| Fixed rate, fixed term maturing through July 2021
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 50,000	$ 304,000
Interest rate	0.22%	0.24%
Midland States Bank \| Putable fixed rate loan maturing through August 2021
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 390,000	$ 475,000
Interest rate	1.90%	2.01%

DEPOSITS

6 Months Ended

Jun. 30, 2021

Deposits [Abstract]

DEPOSITS

The following table summarizes the classification of deposits as of June 30, 2021 and December 31, 2020:


(dollars in thousands)	June 30, 2021		December 31, 2020
Noninterest-bearing demand	$	1,366,453	$	1,469,579
Interest-bearing:
Checking	1,619,436		1,568,888
Money market	787,688		785,871
Savings	669,277		597,966
Time	753,497		678,712
Total deposits	$	5,196,351	$	5,101,016

COMMITMENTS, CONTINGENCIES AND CREDIT RISK

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS, CONTINGENCIES AND CREDIT RISK

The spread of the COVID-19 virus had an impact on our operations as of June 30, 2021 and 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, and governmental policy responses, 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. If these effects worsen, 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 as of June 30, 2021 and December 31, 2020 were as follows:


(dollars in thousands)	June 30, 2021		December 31, 2020
Commitments to extend credit	$	897,556	$	894,212
Financial guarantees – standby letters of credit	13,637		15,889

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 2021 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. There were no losses as a result of make-whole requests and loan repurchases for the three and six months ended June 30, 2021 and 2020. The liability for unresolved repurchase demands totaled $0.2 million and $0.3 million at June 30, 2021 and December 31, 2020, respectively.

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Interest income:
Loans: Taxable	$ 52,490	$ 53,173	$ 107,044	$ 106,712
Loans: Tax exempt	650	785	1,320	1,621
Loans held for sale	261	1,004	703	1,195
Investment securities:
Taxable	3,451	3,872	6,731	7,966
Tax exempt	794	862	1,575	1,849
Nonmarketable equity securities	609	680	1,289	1,285
Federal funds sold and cash investments	142	172	238	1,234
Total interest income	58,397	60,548	118,900	121,862
Interest expense:
Deposits	2,992	5,559	6,175	13,921
Short-term borrowings	20	28	44	129
FHLB advances and other borrowings	2,470	2,905	5,040	5,872
Subordinated debt	2,316	2,481	4,683	4,990
Trust preferred debentures	489	586	980	1,310
Total interest expense	8,287	11,559	16,922	26,222
Net interest income	50,110	48,989	101,978	95,640
Provision for credit losses on loans	0	11,610	3,950	22,179
Provision for credit losses on unfunded commitments	(265)	(665)	(800)	269
Provision for other credit losses	(190)	52	(40)	127
Total provision for credit losses	(455)	10,997	3,110	22,575
Net interest income after provision for credit losses	50,565	37,992	98,868	73,065
Noninterest income:
Wealth management revenue	6,529	5,698	12,460	11,375
Commercial FHA revenue	342	3,414	634	4,681
Residential mortgage banking revenue	1,562	2,723	3,136	4,478
Service charges on deposit accounts	1,916	1,706	3,742	4,362
Interchange revenue	3,797	3,013	7,172	5,846
Gain on sales of investment securities, net	377	0	377	0
Impairment on commercial mortgage servicing rights	(1,148)	(107)	(2,423)	(8,575)
Company-owned life insurance	863	892	1,723	1,792
Other income	3,179	2,057	5,412	4,035
Total noninterest income	17,417	19,396	32,233	27,994
Noninterest expense:
Salaries and employee benefits	22,071	20,740	42,599	41,803
Occupancy and equipment	3,796	4,286	7,736	9,155
Data processing	6,288	5,458	12,281	10,935
Professional	5,549	1,606	7,734	3,461
Marketing	700	794	1,177	1,775
Communications	824	946	1,646	2,236
Amortization of intangible assets	1,470	1,629	2,985	3,391
Federal Home Loan Bank Advances Prepayment Fees	3,669	0	3,677	0
Other expense	4,574	5,936	8,185	10,305
Total noninterest expense	48,941	41,395	88,020	83,061
Income before income taxes	19,041	15,993	43,081	17,998
Income taxes	(1,083)	3,424	4,419	3,880
Net income	$ 20,124	$ 12,569	$ 38,662	$ 14,118
Per common share data:
Basic earnings per common share (in dollars per share)	$ 0.88	$ 0.53	$ 1.70	$ 0.59
Diluted earnings per common share (in dollars per share)	$ 0.88	$ 0.53	$ 1.69	$ 0.58
Weighted average common shares outstanding (in shares)	22,591,127	23,338,890	22,557,728	23,886,215
Weighted average diluted common shares outstanding (in shares)	22,677,515	23,339,964	22,633,040	23,922,888

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Anticipated material loss	$ 0		$ 0
Losses as a result of make whole requests and loan repurchases	0	$ 0	0	$ 0
Liability for unresolved repurchase demands	200,000		200,000		$ 300,000
Commitments to extend credit
Loan commitments	897,556,000		897,556,000		894,212,000
Financial guarantees – standby letters of credit
Loan commitments	$ 13,637,000		$ 13,637,000		$ 15,889,000

LOANS - Non-accrual (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Nonaccrual
Nonaccrual with allowance	$ 33,742	$ 38,489
Nonaccrual with no allowance	23,139	11,139
Total nonaccrual	56,881	49,628
Threshold amount for non accrual loans	500
Commercial Loan Portfolio
Nonaccrual
Nonaccrual with allowance	21,202	25,291
Nonaccrual with no allowance	22,086	10,068
Total nonaccrual	43,288	35,359
Commercial Loan Portfolio \| Commercial
Nonaccrual
Nonaccrual with allowance	5,232	3,498
Nonaccrual with no allowance	4,890	0
Total nonaccrual	10,122	3,498
Commercial Loan Portfolio \| Commercial other
Nonaccrual
Nonaccrual with allowance	4,054	2,634
Nonaccrual with no allowance	0	0
Total nonaccrual	4,054	2,634
Commercial Loan Portfolio \| Commercial real estate non-owner occupied
Nonaccrual
Nonaccrual with allowance	6,706	5,509
Nonaccrual with no allowance	14,065	3,823
Total nonaccrual	20,771	9,332
Commercial Loan Portfolio \| Commercial real estate owner occupied
Nonaccrual
Nonaccrual with allowance	2,514	3,598
Nonaccrual with no allowance	2,135	3,227
Total nonaccrual	4,649	6,825
Commercial Loan Portfolio \| Multi-family
Nonaccrual
Nonaccrual with allowance	1,394	7,921
Nonaccrual with no allowance	996	2,325
Total nonaccrual	2,390	10,246
Commercial Loan Portfolio \| Construction and land development
Nonaccrual
Nonaccrual with allowance	1,302	2,131
Nonaccrual with no allowance	0	693
Total nonaccrual	1,302	2,824
Residential Portfolio Segment \| Residential first lien
Nonaccrual
Nonaccrual with allowance	7,252	8,534
Nonaccrual with no allowance	1,053	1,071
Total nonaccrual	8,305	9,605
Residential Portfolio Segment \| Other residential
Nonaccrual
Nonaccrual with allowance	2,306	2,437
Nonaccrual with no allowance	0	0
Total nonaccrual	2,306	2,437
Consumer \| Consumer
Nonaccrual
Nonaccrual with allowance	185	262
Nonaccrual with no allowance	0	0
Total nonaccrual	185	262
Lease financing
Nonaccrual
Total nonaccrual	2,797	1,965
Lease financing \| Lease financing
Nonaccrual
Nonaccrual with allowance	2,797	1,965
Nonaccrual with no allowance	0	0
Total nonaccrual	$ 2,797	$ 1,965

DEPOSITS (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Classification of deposits
Noninterest-bearing demand	$ 1,366,453	$ 1,469,579
Interest-bearing:
Checking	1,619,436	1,568,888
Money market	787,688	785,871
Savings	669,277	597,966
Time	753,497	678,712
Total deposits	$ 5,196,351	$ 5,101,016

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Stockholders' Equity [Abstract]
Common dividend declared, per share (in dollars per share)	$ 0.28	$ 0.2675	$ 0.56	$ 0.535

INVESTMENT SECURITIES - Classified (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Investment securities available for sale
Amortized cost	$ 738,880		$ 661,713
Gross unrealized gains	14,795		16,510
Gross unrealized losses	6,024		1,146
Allowance for credit losses	326	$ 516	366	$ 127	$ 75	$ 0
Fair value	747,325		676,711
U.S. Treasury securities
Investment securities available for sale
Amortized cost	325
Gross unrealized gains	0
Gross unrealized losses	0
Allowance for credit losses	0
Fair value	325
U.S. government sponsored entities and U.S. agency securities
Investment securities available for sale
Amortized cost	53,310		35,287
Gross unrealized gains	188		377
Gross unrealized losses	465		97
Allowance for credit losses	0		0
Fair value	53,033		35,567
Mortgage-backed securities - agency
Investment securities available for sale
Amortized cost	309,838		338,340
Gross unrealized gains	3,714		6,284
Gross unrealized losses	3,260		47
Allowance for credit losses	0		0
Fair value	310,292		344,577
Mortgage-backed securities - non-agency
Investment securities available for sale
Amortized cost	35,523		20,411
Gross unrealized gains	116		333
Gross unrealized losses	125		0
Allowance for credit losses	113	28	0	0	0	0
Fair value	35,401		20,744
State and municipal securities
Investment securities available for sale
Amortized cost	138,337		122,488
Gross unrealized gains	6,378		7,311
Gross unrealized losses	174		5
Allowance for credit losses	0	28	29	1	19	0
Fair value	144,541		129,765
Corporate securities
Investment securities available for sale
Amortized cost	201,547		145,187
Gross unrealized gains	4,399		2,205
Gross unrealized losses	2,000		997
Allowance for credit losses	213	$ 460	337	$ 126	$ 56	$ 0
Fair value	$ 203,733		$ 146,058

EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2021

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 three and six months ended June 30, 2021 and 2020:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands, except per share data)	2021		2020		2021		2020
Net income	$	20,124	$	12,569	$	38,662	$	14,118



Common shareholder dividends	(6,265)		(6,175)		(12,502)		(12,685)
Unvested restricted stock award dividends	(62)		(65)		(126)		(130)
Undistributed earnings to unvested restricted stock awards	(134)		(65)		(259)		(14)
Undistributed earnings to common shareholders	$	13,663	$	6,264	$	25,775	$	1,289
Basic
Distributed earnings to common shareholders	$	6,265	$	6,175	$	12,502	$	12,685
Undistributed earnings to common shareholders	13,663		6,264		25,775		1,289
Total common shareholders earnings, basic	$	19,928	$	12,439	$	38,277	$	13,974
Diluted
Distributed earnings to common shareholders	$	6,265	$	6,175	$	12,502	$	12,685
Undistributed earnings to common shareholders	13,663		6,264		25,775		1,289
Total common shareholders earnings	19,928		12,439		38,277		13,974
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	—		—		1		—
Total common shareholders earnings, diluted	$	19,928	$	12,439	$	38,278	$	13,974
Weighted average common shares outstanding, basic	22,591,127		23,338,890		22,557,728		23,886,215
Options	86,388		1,074		75,312		36,673
Weighted average common shares outstanding, diluted	22,677,515		23,339,964		22,633,040		23,922,888
Basic earnings per common share	$	0.88	$	0.53	$	1.70	$	0.59
Diluted earnings per common share	0.88		0.53		1.69		0.58

LOANS - Loans to Directors, Executive Officers, Principal Shareholders and Affiliates (Details) - Directors, Executive Officers, Principal Shareholders and Affiliates - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Related Party Transaction [Line Items]
Beginning balance	$ 18,762	$ 23,806	$ 18,762	$ 23,806	$ 19,372	$ 19,693	$ 21,735	$ 22,989
New loans and other additions	404	2,462	1,024	2,542
Repayments and other reductions	(1,014)	(391)	(1,955)	(1,725)
Ending balance	$ 18,762	$ 23,806	$ 18,762	$ 23,806

FAIR VALUE OF FINANCIAL INSTRUMENTS - Unobservable inputs (Level 3) (Details) - Corporate securities - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period	$ 959	$ 925	$ 959	$ 955
Total realized in earnings	4	5	6	8
Total unrealized in other comprehensive income	49	(4)	49	(34)
Net settlements (principal and interest)	(4)	(5)	(6)	(8)
Balance, end of period	$ 1,008	$ 921	$ 1,008	$ 921

INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

Investment Securities Available for Sale

Investment securities available for sale at June 30, 2021 and December 31, 2020 were as follows:


	June 30, 2021
(dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Allowance for credit losses		Fair value
Investment securities available for sale
U.S. Treasury securities	$	325	$	—	$	—	$	—	$	325
U.S. government sponsored entities and U.S. agency securities	53,310		188		465		—		53,033
Mortgage-backed securities - agency	309,838		3,714		3,260		—		310,292
Mortgage-backed securities - non-agency	35,523		116		125		113		35,401
State and municipal securities	138,337		6,378		174		—		144,541
Corporate securities	201,547		4,399		2,000		213		203,733
Total available for sale securities	$	738,880	$	14,795	$	6,024	$	326	$	747,325


	December 31, 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 available for sale securities	$	661,713	$	16,510	$	1,146	$	366	$	676,711

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	$	17,952	$	18,175
After one year through five years	67,222		69,386
After five years through ten years	267,073		271,472
After ten years	41,272		42,599
Mortgage-backed securities	345,361		345,693
Total available for sale securities	$	738,880	$	747,325

Proceeds and gross realized gains on sales of investment securities available for sale for the three and six months ended June 30, 2021 and 2020, are summarized as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Investment securities available for sale
Proceeds from sales	$	12,617	$	—	$	12,617	$	—
Gross realized gains on sales	377		—		377		—


(dollars in thousands)	Mortgage-backed securities - non-agency		State and municipal securities		Corporate securities		Total
Changes in allowance for credit losses on investment securities available for sale:
For the three months ended June 30, 2021
Balance, beginning of period	$	28	$	28	$	460	$	516
Current-period provision for expected credit losses	85		(28)		(247)		(190)
Balance, end of period	$	113	$	—	$	213	$	326
For the six months ended June 30, 2021
Balance, beginning of period	$	—	$	29	$	337	$	366
Current-period provision for expected credit losses	113		(29)		(124)		(40)
Balance, end of period	$	113	$	—	$	213	$	326
For the three months ended June 30, 2020
Balance, beginning of period	$	—	$	19	$	56	$	75
Current-period provision for expected credit losses	—		(18)		70		52
Balance, end of period	$	—	$	1	$	126	$	127
For the six months ended June 30, 2020
Balance, beginning of period	$	—	$	—	$	—	$	—
Current-period provision for expected credit losses	—		1		126		127
Balance, end of period	$	—	$	1	$	126	$	127


	June 30, 2021
	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	$	17,285	$	465	$	—	$	—	$	17,285	$	465
Mortgage-backed securities - agency	172,022		3,260		—		—		172,022		3,260
Mortgage-backed securities - non-agency	—		—		—		—		—		—
State and municipal securities	15,993		174		—		—		15,993		174
Corporate securities	18,370		2,000		—		—		18,370		2,000
Total available for sale securities	$	223,670	$	5,899	$	—	$	—	$	223,670	$	5,899


	December 31, 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 available for sale securities	$	56,085	$	666	$	—	$	—	$	56,085	$	666

At June 30, 2021, 67 investment securities available for sale had unrealized losses with aggregate depreciation of 2.57% from their amortized cost basis. For all of these investment securities, the unrealized losses were generally due to changes in interest rates, and unrealized losses were considered to be temporary as the fair value is expected to recover as the securities approach their respective maturity dates. 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.

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net income	$ 38,662	$ 14,118
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	3,110	22,575
Depreciation on premises and equipment	2,851	3,321
Amortization of intangible assets	2,985	3,391
Amortization of operating lease right-of-use asset	845	1,351
Amortization of loan servicing rights	1,708	1,668
Share-based compensation expense	986	1,218
Increase in cash surrender value of life insurance	(1,723)	(1,792)
Investment securities amortization, net	2,148	1,539
Gain on sales of investment securities, net	(377)	0
Gain on sales of other real estate owned	(450)	(6)
Impairment on other real estate owned	417	1,257
Origination of loans held for sale	(317,350)	(288,239)
Proceeds from sales of loans held for sale	494,541	470,309
Gain on sale of loans held for sale	(2,728)	(7,623)
Impairment on commercial mortgage servicing rights	2,423	8,575
Impairment on mortgage servicing rights held for sale	143	887
Impairment related to facilities optimization	0	206
Net change in operating assets and liabilities:
Accrued interest receivable	922	(5,494)
Other assets	(12,237)	(7,617)
Accrued expenses and other liabilities	(223)	(3,075)
Net cash provided by operating activities	216,653	216,569
Cash flows from investing activities:
Purchases of investment securities available for sale	(206,033)	(75,256)
Proceeds from sales of investment securities available for sale	12,617	0
Maturities and payments on investment securities available for sale	114,808	97,860
Purchases of equity securities	(186)	(3,219)
Net decrease (increase) in loans	212,886	(650,890)
Purchases of premises and equipment	(1,000)	(1,349)
Proceeds from sale of premises and equipment	590	7
Purchases of nonmarketable equity securities	0	(6,260)
Proceeds from sales of nonmarketable equity securities	7,923	0
Proceeds from sales of other real estate owned	8,069	368
Purchases of company-owned life insurance	(550)	0
Net cash paid on acquisition	(2,797)	0
Net cash provided by (used in) investing activities	146,327	(638,739)
Cash flows from financing activities:
Net increase in deposits	95,335	398,853
Net increase (decrease) in short-term borrowings	7,028	(4,893)
Proceeds from FHLB borrowings	300,000	204,000
Payments made on FHLB borrowings and other borrowings	(639,000)	(3,401)
Payments made on subordinated debt	(31,075)	(7,250)
Cash dividends paid on common stock	(12,628)	(12,815)
Common stock repurchased	(1,208)	(27,719)
Proceeds from issuance of common stock under employee benefit plans	2,028	758
Net cash (used in) provided by financing activities	(279,520)	547,533
Net increase in cash and cash equivalents	83,460	125,363
Cash and cash equivalents:
Beginning of period	341,640	394,505
End of period	425,100	519,868
Cash payments for:
Interest paid on deposits and borrowed funds	17,369	28,237
Income tax paid (net of refunds)	12,907	909
Supplemental disclosures of noncash investing and financing activities:
Transfer of loans to loans held for sale	48,494	192,577
Transfer of loans to other real estate owned	$ 485	$ 7,557

DERIVATIVE INSTRUMENTS - Cash Flow Hedges (Details) - Cash Flow Hedge - Receive Fixed, Pay Variable Interest Rate Swaps - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Derivative disclosures
Notational amount, asset	$ 50.0	$ 100.0
Average remaining life in years	5 years 9 months 18 days	5 years 3 months 18 days
Long
Derivative disclosures
Weighted average rate	0.60%	0.57%
Short
Derivative disclosures
Weighted average rate	0.20%	0.22%

LEASES

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

LEASES

The Company had operating lease right-of-use assets of $8.9 million and $9.2 million as of June 30, 2021 and December 31, 2020, respectively, and operating lease liabilities of $11.3 million and $12.0 million at the same dates, respectively.

The operating leases, primarily for banking offices and operating facilities, have remaining lease terms of 3 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 three and six months ended June 30, 2021 and 2020 was as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2021			2020			2021			2020
Operating lease cost	$	514		$	789		$	1,037		$	1,570
Operating cash flows from leases	603			782			1,386			1,727
Right-of-use assets obtained in exchange for lease obligations	609			916			689			1,440
Right-of-use assets derecognized due to terminations or impairment	(88)			—			(210)			(13)
Weighted average remaining lease term	7.9 years			7.6 years			7.9 years			7.6 years
Weighted average discount rate	2.86		%	2.89		%	2.86		%	2.89		%

The projected minimum rental payments under the terms of the leases as of June 30, 2021 were as follows:


(dollars in thousands)	Amount
Year ending December 31:
2021 remaining	$	969
2022	2,244
2023	2,014
2024	1,718
2025	814
Thereafter	4,947
Total future minimum lease payments	12,706
Less imputed interest	(1,400)
Total operating lease liabilities	$	11,306

BUSINESS DESCRIPTION	6 Months Ended
BUSINESS DESCRIPTION	Jun. 30, 2021
BUSINESS DESCRIPTION
BUSINESS DESCRIPTION	BUSINESS DESCRIPTION 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 (the “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. 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.

LOANS - Collateral dependent loans (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Summary of loans
Collateral dependent loans	$ 32,889	$ 18,973
Real Estate
Summary of loans
Collateral dependent loans	24,903	18,973
Blanket Lien
Summary of loans
Collateral dependent loans	7,518	0
Equipment
Summary of loans
Collateral dependent loans	468	0
Commercial \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	7,518
Commercial \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	0
Commercial \| Commercial Loan Portfolio \| Blanket Lien
Summary of loans
Collateral dependent loans	7,518
Commercial \| Commercial Loan Portfolio \| Equipment
Summary of loans
Collateral dependent loans	0
Commercial real estate non-owner occupied \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	20,481	8,159
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	20,481	8,159
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Blanket Lien
Summary of loans
Collateral dependent loans	0	0
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Equipment
Summary of loans
Collateral dependent loans	0	0
Commercial real estate owner occupied \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	2,132
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	2,132
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Blanket Lien
Summary of loans
Collateral dependent loans	0
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Equipment
Summary of loans
Collateral dependent loans	0
Multi-family \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	2,290	10,121
Multi-family \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	2,290	10,121
Multi-family \| Commercial Loan Portfolio \| Blanket Lien
Summary of loans
Collateral dependent loans	0	0
Multi-family \| Commercial Loan Portfolio \| Equipment
Summary of loans
Collateral dependent loans	0	0
Construction and land development \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans		693
Construction and land development \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans		693
Construction and land development \| Commercial Loan Portfolio \| Blanket Lien
Summary of loans
Collateral dependent loans		0
Construction and land development \| Commercial Loan Portfolio \| Equipment
Summary of loans
Collateral dependent loans		$ 0
Lease financing \| Lease financing
Summary of loans
Collateral dependent loans	468
Lease financing \| Lease financing \| Real Estate
Summary of loans
Collateral dependent loans	0
Lease financing \| Lease financing \| Blanket Lien
Summary of loans
Collateral dependent loans	0
Lease financing \| Lease financing \| Equipment
Summary of loans
Collateral dependent loans	$ 468

SUBORDINATED DEBT (Tables)

6 Months Ended

Jun. 30, 2021

Subordinated Borrowings [Abstract]

Schedule of Summary of Company's Subordinated Debt

The following table summarizes the Company’s subordinated debt as of June 30, 2021 and December 31, 2020:


(dollars in thousands)	June 30, 2021		December 31, 2020
Subordinated debt issued June 2015 – variable interest rate equivalent to three month LIBOR plus 4.35%, which was 4.59% at December 31, 2020	$	—	$	31,075
Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $550 - maturing June 18, 2025	546		545
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	39,593		39,561
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	71,914		71,785
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	26,853		26,829
Total subordinated debt	$	138,906	$	169,795

INVESTMENT SECURITIES - Amortized cost and fair value (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Amortized cost
Within one year	$ 17,952		$ 17,952
After one year through five years	67,222		67,222
After five years through ten years	267,073		267,073
After ten years	41,272		41,272
Mortgage-backed securities	345,361		345,361
Total available for sale securities	738,880		738,880		$ 661,713
Fair value
Within one year	18,175		18,175
After one year through five years	69,386		69,386
After five years through ten years	271,472		271,472
After ten years	42,599		42,599
Mortgage-backed securities	345,693		345,693
Total available for sale securities	747,325		747,325		$ 676,711
Proceeds from sales of investment securities available for sale	12,617	$ 0	12,617	$ 0
Gross realized gains on sales	$ 377	$ 0	$ 377	$ 0

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative effect of adjustment	Adjusted balance	Common stock	Common stock Adjusted balance	Capital surplus	Capital surplus Adjusted balance	Retained earnings	Retained earnings Cumulative effect of adjustment	Retained earnings Adjusted balance	Accumulated other comprehensive income	Accumulated other comprehensive income Adjusted balance
Beginning Balance at Dec. 31, 2019	$ 661,911	$ (7,172)	$ 654,739	$ 244	$ 244	$ 488,305	$ 488,305	$ 165,920	$ (7,172)	$ 158,748	$ 7,442	$ 7,442
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	14,118							14,118
Other comprehensive income (loss)	3,290										3,290
Common dividends declared	(12,815)							(12,815)
Common stock repurchased	(27,719)			(15)		(27,704)
Share-based compensation expense	1,218					1,218
Issuance of common stock under employee benefit plans	758					758
Ending Balance at Jun. 30, 2020	633,589			229		462,577		160,051			10,732
Beginning Balance at Mar. 31, 2020	631,160			234		468,750		153,722			8,454
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	12,569							12,569
Other comprehensive income (loss)	2,278										2,278
Common dividends declared	(6,240)							(6,240)
Common stock repurchased	(7,157)			(5)		(7,152)
Share-based compensation expense	616					616
Issuance of common stock under employee benefit plans	363					363
Ending Balance at Jun. 30, 2020	633,589			229		462,577		160,051			10,732
Beginning Balance at Dec. 31, 2020	621,391			223		453,410		156,327			11,431
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	38,662							38,662
Other comprehensive income (loss)	(1,045)										(1,045)
Common dividends declared	(12,628)							(12,628)
Common stock repurchased	(1,208)			(1)		(1,207)
Share-based compensation expense	986					986
Issuance of common stock under employee benefit plans	2,028			2		2,026
Ending Balance at Jun. 30, 2021	648,186			224		455,215		182,361			10,386
Beginning Balance at Mar. 31, 2021	635,467			224		454,264		168,564			12,415
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	20,124							20,124
Other comprehensive income (loss)	(2,029)										(2,029)
Common dividends declared	(6,327)							(6,327)
Share-based compensation expense	484					484
Issuance of common stock under employee benefit plans	467					467
Ending Balance at Jun. 30, 2021	$ 648,186			$ 224		$ 455,215		$ 182,361			$ 10,386

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

PREMISES AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 115,595		$ 115,595		$ 115,292
Accumulated depreciation	(43,792)		(43,792)		(41,168)
Premises and equipment, net	71,803		71,803		74,124
Depreciation on premises and equipment	1,400	$ 1,600	2,851	$ 3,321
Land
Property, Plant and Equipment [Line Items]
Premises and equipment gross	15,696		15,696		16,158
Buildings and improvements
Property, Plant and Equipment [Line Items]
Premises and equipment gross	66,426		66,426		65,932
Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 33,473		$ 33,473		$ 33,202

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements of the Company are unaudited and should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2021. The consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. A discussion of these policies can be found in Note 1 – Summary of Significant Accounting Policies included in the Company's 2020 Annual Report on Form 10-K. Certain reclassifications of 2020 amounts have been made to conform to the 2021 presentation. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 or any other period.
Principles of Consolidation	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 unaudited balance sheets.
Accounting Guidance Adopted in 2021 and Issued But Not Yet Adopted	Accounting Guidance Adopted in 2021 FASB ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes – In December 2019, the Financial Accounting Standard Board ("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 became effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The adoption of ASU 2019-12 on January 1, 2021 did not have a material impact on the Company's 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 became 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 does not use the equity method of accounting for any equity securities, and its equity securities without a readily determinable fair value are recorded at cost, minus any impairment; therefore, the adoption of this new guidance did not have an impact on the Company's consolidated financial statements. Accounting Guidance Issued But Not Yet Adopted 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; and (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 ASU No. 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 its consolidated financial statements.

FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2021

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.


	June 30, 2021
(dollars in thousands)	Carrying amount		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. Treasury securities	$	325	$	325	$	—	$	—
U.S. government sponsored entities and U.S. agency securities	53,033		—		53,033		—
Mortgage-backed securities - agency	310,292		—		310,292		—
Mortgage-backed securities - non-agency	35,401		—		35,401		—
State and municipal securities	144,541		—		144,541		—
Corporate securities	203,733		—		202,725		1,008
Equity securities	9,506		9,506		—		—
Loans held for sale	12,187		—		12,187		—
Derivative assets	7,095		—		7,095		—

Total	$	776,113	$	9,831	$	765,274	$	1,008
Liabilities
Derivative liabilities	$	548	$	—	$	548	$	—

Total	$	548	$	—	$	548	$	—

Assets measured at fair value on a non-recurring basis:
Loan servicing rights	$	34,577	$	—	$	—	$	34,577
Mortgage servicing rights held for sale	780		—		—		780
Nonperforming loans	9,426		120		9,306		—
Other real estate owned	1,372		—		1,372		—
Assets held for sale	2,842		—		2,842		—


	December 31, 2020
(dollars in thousands)	Carrying amount		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		—
Derivative assets	3,423		—		3,423		—

Total	$	827,648	$	9,424	$	817,265	$	959
Liabilities
Derivative liabilities	$	1,112	$	—	$	1,112	$	—

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		—


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Balance, beginning of period	$	959	$	925	$	959	$	955
Total realized in earnings (1)	4		5		6		8
Total unrealized in other comprehensive income (2)	49		(4)		49		(34)
Net settlements (principal and interest)	(4)		(5)		(6)		(8)
Balance, end of period	$	1,008	$	921	$	1,008	$	921

(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.

(dollars in thousands)

Fair value

Valuation
technique

Unobservable
input / assumptions

Range (weighted average)(1)

June 30, 2021

Corporate securities

1,008

Consensus pricing

Net market price

0.0% - 5.1% (2.6)%

December 31, 2020

Corporate securities

959

Consensus pricing

Net market price

(2.0)% - 4.9% (2.0)%

(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 to 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 losses recognized on assets measured on a nonrecurring basis for the three and six months ended June 30, 2021 and 2020:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Loan servicing rights	$	1,148	$	107	$	2,423	$	8,575
Mortgage servicing rights held for sale	143		391		143		887
Nonperforming loans	4,295		3,295		6,272		16,214
Other real estate owned	314		652		417		1,257
Assets held for sale	—		60		—		206
Total losses on assets measured on a nonrecurring basis	$	5,900	$	4,505	$	9,255	$	27,139

(dollars in thousands)

Fair value

Valuation
technique

Unobservable
input / assumptions

Range (weighted average)(1)

June 30, 2021

Loan servicing rights:

Commercial MSR

34,255

Discounted cash flow

Prepayment speed

8.00% - 18.00% (8.20%)

Discount rate

10.00% - 27.00% (11.54%)

SBA servicing rights

845

Discounted cash flow

Prepayment speed

12.65% - 14.20% (13.01%)

Discount rate

10.00% - 12.00% (11.00%)

MSR held for sale

780

Discounted cash flow

Prepayment speed

14.28% -30.42% (17.46%)

Discount rate

9.00% - 11.50% (10.13%)

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%)

Other:

Nonperforming loans

1,279

Fair value of collateral

Discount for type of property,

5.76% - 6.43% (6.14%)

age of appraisal and current status

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

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 commercial and residential 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.


	June 30, 2021						December 31, 2020
(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
Residential loans held for sale	12,187		717		11,470		11,967		743		11,224

Total loans held for sale	$	12,187	$	717	$	11,470	$	138,090	$	810	$	137,280


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Commercial loans held for sale	$	(23)	$	276	$	(67)	$	118
Residential loans held for sale	320		414		(63)		669
Total loans held for sale	$	297	$	690	$	(130)	$	787

The carrying values and estimated fair value of certain financial instruments not carried at fair value at June 30, 2021 and December 31, 2020 were as follows:


	June 30, 2021
(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	$	418,782	$	418,782	$	418,782	$	—	$	—
Federal funds sold	6,318		6,318		6,318		—		—

Loans, net	4,777,202		4,878,116		—		—		4,878,116
Accrued interest receivable	22,623		22,623		—		22,623		—

Liabilities
Deposits	$	5,196,351	$	5,201,056	$	—	$	5,201,056	$	—
Short-term borrowings	75,985		75,985		—		75,985		—
FHLB and other borrowings	440,171		456,971		—		456,971		—
Subordinated debt	138,906		148,763		—		148,763		—
Trust preferred debentures	49,094		54,984		—		54,984		—


	December 31, 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		—		—

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		—

In accordance with our adoption of ASU 2016-1 in 2019, the methods utilized to measure fair value of financial instruments at June 30, 2021 and December 31, 2020 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

LOANS - Aging Status of recorded investment (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Aging Status of recorded investment
Past Due	$ 20,304	$ 33,001
Nonaccrual	56,881	49,628
Current	4,758,681	5,020,702
Total	4,835,866	5,103,331
30-59 days past due
Aging Status of recorded investment
Past Due	14,604	23,714
60-89 days past due
Aging Status of recorded investment
Past Due	5,620	7,746
Past due 90 days or more
Aging Status of recorded investment
Past Due	80	1,541
Commercial Loan Portfolio
Aging Status of recorded investment
Past Due	12,123	18,973
Nonaccrual	43,288	35,359
Current	3,121,666	3,329,953
Total	3,177,077	3,384,285
Commercial Loan Portfolio \| 30-59 days past due
Aging Status of recorded investment
Past Due	9,693	14,149
Commercial Loan Portfolio \| 60-89 days past due
Aging Status of recorded investment
Past Due	2,375	3,928
Commercial Loan Portfolio \| Past due 90 days or more
Aging Status of recorded investment
Past Due	55	896
Lease financing
Aging Status of recorded investment
Past Due	2,182	5,729
Nonaccrual	2,797	1,965
Current	402,182	402,370
Total	407,161	410,064
Lease financing \| 30-59 days past due
Aging Status of recorded investment
Past Due	1,801	4,539
Lease financing \| 60-89 days past due
Aging Status of recorded investment
Past Due	381	545
Lease financing \| Past due 90 days or more
Aging Status of recorded investment
Past Due	0	645
Commercial \| Commercial Loan Portfolio
Aging Status of recorded investment
Past Due	1,318	416
Nonaccrual	10,122	3,498
Current	708,202	933,468
Total	719,642	937,382
Commercial \| Commercial Loan Portfolio \| 30-59 days past due
Aging Status of recorded investment
Past Due	1,255	389
Commercial \| Commercial Loan Portfolio \| 60-89 days past due
Aging Status of recorded investment
Past Due	63	27
Commercial \| Commercial Loan Portfolio \| Past due 90 days or more
Aging Status of recorded investment
Past Due	0	0
Commercial other \| Commercial Loan Portfolio
Aging Status of recorded investment
Past Due	7,908	8,804
Nonaccrual	4,054	2,634
Current	692,476	736,755
Total	704,438	748,193
Commercial other \| Commercial Loan Portfolio \| 30-59 days past due
Aging Status of recorded investment
Past Due	6,048	4,007
Commercial other \| Commercial Loan Portfolio \| 60-89 days past due
Aging Status of recorded investment
Past Due	1,860	3,901
Commercial other \| Commercial Loan Portfolio \| Past due 90 days or more
Aging Status of recorded investment
Past Due	0	896
Commercial real estate non-owner occupied \| Commercial Loan Portfolio
Aging Status of recorded investment
Past Due	1,105	6,684
Nonaccrual	20,771	9,332
Current	886,911	855,435
Total	908,787	871,451
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| 30-59 days past due
Aging Status of recorded investment
Past Due	598	6,684
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| 60-89 days past due
Aging Status of recorded investment
Past Due	452	0
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Past due 90 days or more
Aging Status of recorded investment
Past Due	55	0
Commercial real estate owner occupied \| Commercial Loan Portfolio
Aging Status of recorded investment
Past Due	1,091	2,145
Nonaccrual	4,649	6,825
Current	434,982	414,287
Total	440,722	423,257
Commercial real estate owner occupied \| Commercial Loan Portfolio \| 30-59 days past due
Aging Status of recorded investment
Past Due	1,091	2,145
Commercial real estate owner occupied \| Commercial Loan Portfolio \| 60-89 days past due
Aging Status of recorded investment
Past Due	0	0
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Past due 90 days or more
Aging Status of recorded investment
Past Due	0	0
Multi-family \| Commercial Loan Portfolio
Aging Status of recorded investment
Past Due	59	61
Nonaccrual	2,390	10,246
Current	113,727	141,227
Total	116,176	151,534
Multi-family \| Commercial Loan Portfolio \| 30-59 days past due
Aging Status of recorded investment
Past Due	59	61
Multi-family \| Commercial Loan Portfolio \| 60-89 days past due
Aging Status of recorded investment
Past Due	0	0
Multi-family \| Commercial Loan Portfolio \| Past due 90 days or more
Aging Status of recorded investment
Past Due	0	0
Farmland \| Commercial Loan Portfolio
Aging Status of recorded investment
Past Due	242	0
Nonaccrual	0	0
Current	74,562	79,731
Total	74,804	79,731
Farmland \| Commercial Loan Portfolio \| 30-59 days past due
Aging Status of recorded investment
Past Due	242	0
Farmland \| Commercial Loan Portfolio \| 60-89 days past due
Aging Status of recorded investment
Past Due	0	0
Farmland \| Commercial Loan Portfolio \| Past due 90 days or more
Aging Status of recorded investment
Past Due	0	0
Construction and land development \| Commercial Loan Portfolio
Aging Status of recorded investment
Past Due	400	863
Nonaccrual	1,302	2,824
Current	210,806	169,050
Total	212,508	172,737
Construction and land development \| Commercial Loan Portfolio \| 30-59 days past due
Aging Status of recorded investment
Past Due	400	863
Construction and land development \| Commercial Loan Portfolio \| 60-89 days past due
Aging Status of recorded investment
Past Due	0	0
Construction and land development \| Commercial Loan Portfolio \| Past due 90 days or more
Aging Status of recorded investment
Past Due	0	0
Residential first lien \| Residential Portfolio Segment
Aging Status of recorded investment
Past Due	873	334
Nonaccrual	8,305	9,605
Current	287,078	348,390
Total	296,256	358,329
Residential first lien \| Residential Portfolio Segment \| 30-59 days past due
Aging Status of recorded investment
Past Due	94	127
Residential first lien \| Residential Portfolio Segment \| 60-89 days past due
Aging Status of recorded investment
Past Due	779	207
Residential first lien \| Residential Portfolio Segment \| Past due 90 days or more
Aging Status of recorded investment
Past Due	0	0
Other residential \| Residential Portfolio Segment
Aging Status of recorded investment
Past Due	92	375
Nonaccrual	2,306	2,437
Current	67,958	81,739
Total	70,356	84,551
Other residential \| Residential Portfolio Segment \| 30-59 days past due
Aging Status of recorded investment
Past Due	24	240
Other residential \| Residential Portfolio Segment \| 60-89 days past due
Aging Status of recorded investment
Past Due	43	135
Other residential \| Residential Portfolio Segment \| Past due 90 days or more
Aging Status of recorded investment
Past Due	25	0
Consumer \| Consumer
Aging Status of recorded investment
Past Due	246	382
Nonaccrual	185	262
Current	74,196	79,998
Total	74,627	80,642
Consumer \| Consumer \| 30-59 days past due
Aging Status of recorded investment
Past Due	78	325
Consumer \| Consumer \| 60-89 days past due
Aging Status of recorded investment
Past Due	168	57
Consumer \| Consumer \| Past due 90 days or more
Aging Status of recorded investment
Past Due	0	0
Consumer other \| Consumer
Aging Status of recorded investment
Past Due	4,788	7,208
Nonaccrual	0	0
Current	805,601	778,252
Total	810,389	785,460
Consumer other \| Consumer \| 30-59 days past due
Aging Status of recorded investment
Past Due	2,914	4,334
Consumer other \| Consumer \| 60-89 days past due
Aging Status of recorded investment
Past Due	1,874	2,874
Consumer other \| Consumer \| Past due 90 days or more
Aging Status of recorded investment
Past Due	0	0
Lease financing \| Lease financing
Aging Status of recorded investment
Nonaccrual	$ 2,797	$ 1,965

LOANS - TDRs by portfolio (Details) - USD ($)	6 Months Ended	12 Months Ended
LOANS - TDRs by portfolio (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Troubled debt restructuring
Allowance for loan losses on TDRs	$ 900,000	$ 800,000
Unfunded commitments	0	0
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	4,402,000	2,901,000
TDR's Nonaccrual	9,035,000	9,524,000
Total	13,437,000	12,425,000
Minimum \| Performing
Troubled debt restructuring
TDRs, individually evaluated for impairment, threshold	50,000
COVID-19
Troubled debt restructuring
Modifications not considered TDRs	107,300,000	209,100,000
Commercial Loan Portfolio \| Commercial
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	795,000	967,000
TDR's Nonaccrual	827,000	558,000
Total	1,622,000	1,525,000
Commercial Loan Portfolio \| Commercial real estate
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	2,282,000	866,000
TDR's Nonaccrual	3,863,000	4,314,000
Total	6,145,000	5,180,000
Commercial Loan Portfolio \| Construction and land development
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	35,000	39,000
TDR's Nonaccrual	396,000	909,000
Total	431,000	948,000
Residential Portfolio Segment \| Residential real estate
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	706,000	988,000
TDR's Nonaccrual	3,918,000	3,705,000
Total	4,624,000	4,693,000
Consumer \| Consumer
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	79,000	41,000
TDR's Nonaccrual	0	0
Total	79,000	41,000
Lease financing
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	505,000	0
TDR's Nonaccrual	31,000	38,000
Total	$ 536,000	$ 38,000

SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Financial Information

Selected business segment financial information for the three and six months ended June 30, 2021 and 2020 were as follows:


(dollars in thousands)	Banking		Wealth Management		Other		Total
Three Months Ended June 30, 2021
Net interest income (expense)	$	52,908	$	—	$	(2,798)	$	50,110
Provision for credit losses	(455)		—		—		(455)
Noninterest income	10,868		6,529		20		17,417
Noninterest expense	45,084		4,164		(307)		48,941
Income (loss) before income taxes (benefit)	19,147		2,365		(2,471)		19,041
Income taxes (benefit)	(913)		663		(833)		(1,083)
Net income (loss)	$	20,060	$	1,702	$	(1,638)	$	20,124
Total assets	$	6,644,648	$	29,160	$	(43,798)	$	6,630,010

Six Months Ended June 30, 2021
Net interest income (expense)	$	107,626	$	—	$	(5,648)	$	101,978
Provision for credit losses	3,110		—		—		3,110
Noninterest income	19,732		12,460		41		32,233
Noninterest expense	80,600		8,165		(745)		88,020
Income (loss) before income taxes (benefit)	43,648		4,295		(4,862)		43,081
Income taxes (benefit)	4,876		1,203		(1,660)		4,419
Net income (loss)	$	38,772	$	3,092	$	(3,202)	$	38,662
Total assets	$	6,644,648	$	29,160	$	(43,798)	$	6,630,010

Three Months Ended June 30, 2020
Net interest income (expense)	$	52,050	$	—	$	(3,061)	$	48,989
Provision for credit losses	10,997		—		—		10,997
Noninterest income	10,347		5,698		3,351		19,396
Noninterest expense	36,363		3,442		1,590		41,395
Income (loss) before income taxes (benefit)	15,037		2,256		(1,300)		15,993
Income taxes (benefit)	3,743		205		(524)		3,424
Net income (loss)	$	11,294	$	2,051	$	(776)	$	12,569
Total assets	$	6,564,017	$	22,255	$	58,226	$	6,644,498

Six Months Ended June 30, 2020
Net interest income (expense)	$	101,977	$	—	$	(6,337)	$	95,640
Provision for credit losses	22,575		—		—		22,575
Noninterest income	20,560		11,375		(3,941)		27,994
Noninterest expense	72,428		7,055		3,578		83,061
Income (loss) before income taxes (benefit)	27,534		4,320		(13,856)		17,998
Income taxes (benefit)	7,652		410		(4,182)		3,880
Net income (loss)	$	19,882	$	3,910	$	(9,674)	$	14,118
Total assets	$	6,564,017	$	22,255	$	58,226	$	6,644,498

EARNINGS PER SHARE - Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Net income	$ 20,124	$ 12,569	$ 38,662	$ 14,118
Common shareholder dividends	(6,265)	(6,175)	(12,502)	(12,685)
Unvested restricted stock award dividends	(62)	(65)	(126)	(130)
Undistributed earnings to unvested restricted stock awards	(134)	(65)	(259)	(14)
Undistributed earnings to common shareholders	13,663	6,264	25,775	1,289
Basic
Distributed earnings to common shareholders	6,265	6,175	12,502	12,685
Undistributed earnings to common shareholders	13,663	6,264	25,775	1,289
Total common shareholders earnings, basic	19,928	12,439	38,277	13,974
Diluted
Distributed earnings to common shareholders	6,265	6,175	12,502	12,685
Undistributed earnings to common shareholders	13,663	6,264	25,775	1,289
Total common shareholders earnings, basic	19,928	12,439	38,277	13,974
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	0	0	1	0
Total common shareholders earnings, diluted	$ 19,928	$ 12,439	$ 38,278	$ 13,974
Weighted average common shares outstanding, basic (in shares)	22,591,127	23,338,890	22,557,728	23,886,215
Options (in shares)	86,388	1,074	75,312	36,673
Weighted average common shares outstanding, diluted (in shares)	22,677,515	23,339,964	22,633,040	23,922,888
Basic earnings per common share (in dollars per share)	$ 0.88	$ 0.53	$ 1.70	$ 0.59
Diluted earnings per common share (in dollars per share)	$ 0.88	$ 0.53	$ 1.69	$ 0.58

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Segment Reporting Information [Line Items]
Net interest income (expense)	$ 50,110	$ 48,989	$ 101,978	$ 95,640
Provision for credit losses	(455)	10,997	3,110	22,575
Noninterest income	17,417	19,396	32,233	27,994
Noninterest expense	48,941	41,395	88,020	83,061
Income before income taxes	19,041	15,993	43,081	17,998
Income taxes (benefit)	(1,083)	3,424	4,419	3,880
Net income	20,124	12,569	38,662	14,118
Total assets	6,630,010	6,644,498	6,630,010	6,644,498	$ 6,868,540
Banking
Segment Reporting Information [Line Items]
Net interest income (expense)	52,908	52,050	107,626	101,977
Provision for credit losses	(455)	10,997	3,110	22,575
Noninterest income	10,868	10,347	19,732	20,560
Noninterest expense	45,084	36,363	80,600	72,428
Income before income taxes	19,147	15,037	43,648	27,534
Income taxes (benefit)	(913)	3,743	4,876	7,652
Net income	20,060	11,294	38,772	19,882
Total assets	6,644,648	6,564,017	6,644,648	6,564,017
Wealth management
Segment Reporting Information [Line Items]
Net interest income (expense)	0	0	0	0
Provision for credit losses	0	0	0	0
Noninterest income	6,529	5,698	12,460	11,375
Noninterest expense	4,164	3,442	8,165	7,055
Income before income taxes	2,365	2,256	4,295	4,320
Income taxes (benefit)	663	205	1,203	410
Net income	1,702	2,051	3,092	3,910
Total assets	29,160	22,255	29,160	22,255
Other
Segment Reporting Information [Line Items]
Net interest income (expense)	(2,798)	(3,061)	(5,648)	(6,337)
Provision for credit losses	0	0	0	0
Noninterest income	20	3,351	41	(3,941)
Noninterest expense	(307)	1,590	(745)	3,578
Income before income taxes	(2,471)	(1,300)	(4,862)	(13,856)
Income taxes (benefit)	(833)	(524)	(1,660)	(4,182)
Net income	(1,638)	(776)	(3,202)	(9,674)
Total assets	$ (43,798)	$ 58,226	$ (43,798)	$ 58,226

GOODWILL AND INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	Jun. 01, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Finite-lived intangible assets
Gross carrying amount		$ 73,586		$ 73,586		$ 71,083
Accumulated amortization		(45,686)		(45,686)		(42,701)
Total		27,900		27,900		28,382
Amortization of intangible assets		1,470	$ 1,629	2,985	$ 3,391
ATG Trust
Finite-lived intangible assets
Intangible assets	$ 2,503
Estimated useful life	6 years
Core deposit intangibles
Finite-lived intangible assets
Gross carrying amount		57,012		57,012		57,012
Accumulated amortization		(38,406)		(38,406)		(36,005)
Total		18,606		18,606		21,007
Customer relationship intangibles
Finite-lived intangible assets
Gross carrying amount		16,574		16,574		14,071
Accumulated amortization		(7,280)		(7,280)		(6,696)
Total		$ 9,294		$ 9,294		$ 7,375

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

6 Months Ended

Jun. 30, 2021

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 three and six months ended June 30, 2021 and 2020.


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Noninterest income - in-scope of Topic 606
Wealth management revenue:
Trust management/administration fees	$	4,971	$	4,273	$	9,430	$	8,482
Investment advisory fees	423		495		876		1,024
Investment brokerage fees	485		317		886		712
Other	650		613		1,268		1,157
Service charges on deposit accounts:
Nonsufficient fund fees	1,202		961		2,343		2,827
Other	714		745		1,399		1,535
Interchange revenues	3,797		3,013		7,172		5,846
Other income:
Merchant services revenue	396		304		733		655
Other	1,418		929		2,209		1,867
Noninterest income - out-of-scope of Topic 606	3,361		7,746		5,917		3,889
Total noninterest income	$	17,417	$	19,396	$	32,233	$	27,994

DERIVATIVE INSTRUMENTS - Interest Rate Lock Commitments and Forward Commitments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Other assets
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notational amount, asset	$ 109,104	$ 354,353
Fair value gain (loss)	993	2,217
Interest rate lock commitments \| Other assets
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notational amount, asset	71,925	136,227
Fair value gain (loss)	993	2,217
Forward commitments to sell mortgage-backed securities \| Other assets
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notational amount, asset	37,179	218,126
Fair value gain (loss)	0	0
Forward commitments to sell mortgage-backed securities \| Other liabilities
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Fair value gain (loss)	(40)	(309)
Notional amount, liability	$ 23,483	$ 33,240

DERIVATIVE INSTRUMENTS

6 Months Ended

Jun. 30, 2021

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 table summarizes 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 June 30, 2021 and December 31, 2020:


	Notional amount				Fair value gain
(dollars in thousands)	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
Derivative instruments (included in other assets):
Interest rate lock commitments	$	71,925	$	136,227	$	993	$	2,217
Forward commitments to sell mortgage-backed securities	37,179		218,126		—		—
Total	$	109,104	$	354,353	$	993	$	2,217


	Notional amount				Fair value loss
(dollars in thousands)	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
Derivative instruments (included in other liabilities):

Forward commitments to sell mortgage-backed securities	$	23,483	$	33,240	$	40	$	309

During the three and six months ended June 30, 2021, the Company recognized net losses of $0.5 million and $1.0 million, respectively, on derivative instruments in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income.

During the three and six months ended June 30, 2020, the Company recognized net gains of $0.7 million and $1.3 million, respectively, on derivative instruments in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income.

Cash Flow Hedges

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. The following table summarizes the Company's receive-fixed, pay-variable interest rate swaps on certain Federal Home Loan Bank ("FHLB") advances at June 30, 2021 and December 31, 2020:


(dollars in thousands)	June 30, 2021			December 31, 2020
Notional Amount	$	50,000		$	100,000
Average remaining life in years	5.8			5.3
Weighted average pay rate	0.60		%	0.57		%
Weighted average receive rate	0.20		%	0.22		%

During the first quarter of 2021, the Company terminated an interest rate swap agreement consisting of a $50.0 million notional amount of receive-fixed, pay-variable interest rate swap in conjunction with the repayment of a $50.0 million FHLB advance. A net gain of $0.3 million was recognized in other income in the consolidated statements of income.

In addition, the Company has entered into $140.0 million notional amount of future-starting receive-fixed, pay-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 June 30, 2021, the $5.6 million fair value of the cash flow hedges was included in other assets in the consolidated balance sheets. At December 31, 2020, the $0.4 million fair value of cash flow hedges was included in other liabilities in the consolidated balance sheets. The tax effected amounts of $4.0 million and $0.3 million at June 30, 2021 and December 31, 2020, respectively, were included in accumulated other comprehensive income. There were no amounts recorded in the consolidated statements of income for the three and six months ended June 30, 2021, related to ineffectiveness.

Interest Rate Swap Contracts not Designated as Hedges

The Company entered into interest rate swap contracts sold to commercial customers who wish to modify their interest rate sensitivity. The swaps are offset by contracts simultaneously purchased by the Company from other financial dealer institutions with equal and offsetting terms. Because of the equal and offsetting 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 the customer derivative instruments and the offsetting counterparty derivative instruments were $8.2 million and $8.5 million at June 30, 2021 and December 31, 2020, respectively. The fair value of the customer derivative instruments and the offsetting counterparty derivative instruments was $0.6 million and $0.8 million at June 30, 2021 and December 31, 2020, respectively, which are included in other assets and other liabilities, respectively, on the consolidated balance sheets.

PREMISES AND EQUIPMENT, NET (Tables)

6 Months Ended

Jun. 30, 2021

Property, Plant and Equipment [Abstract]

Summary of Premises and Equipment

A summary of premises and equipment at June 30, 2021 and December 31, 2020 is as follows:


(dollars in thousands)	June 30, 2021		December 31, 2020
Land	$	15,696	$	16,158
Buildings and improvements	66,426		65,932
Furniture and equipment	33,473		33,202
Total	115,595		115,292
Accumulated depreciation	(43,792)		(41,168)
Premises and equipment, net	$	71,803	$	74,124

DERIVATIVE INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments, Fair Value and Notional Amounts


	Notional amount				Fair value gain
(dollars in thousands)	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
Derivative instruments (included in other assets):
Interest rate lock commitments	$	71,925	$	136,227	$	993	$	2,217
Forward commitments to sell mortgage-backed securities	37,179		218,126		—		—
Total	$	109,104	$	354,353	$	993	$	2,217


	Notional amount				Fair value loss
(dollars in thousands)	June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
Derivative instruments (included in other liabilities):

Forward commitments to sell mortgage-backed securities	$	23,483	$	33,240	$	40	$	309

The following table summarizes the Company's receive-fixed, pay-variable interest rate swaps on certain Federal Home Loan Bank ("FHLB") advances at June 30, 2021 and December 31, 2020:


(dollars in thousands)	June 30, 2021			December 31, 2020
Notional Amount	$	50,000		$	100,000
Average remaining life in years	5.8			5.3
Weighted average pay rate	0.60		%	0.57		%
Weighted average receive rate	0.20		%	0.22		%