0001466026-22-000003 | 10-K | XBRL Viewer | Midland States Bancorp INC

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets
Cash and due from banks	$ 673,297	$ 337,080
Federal funds sold	7,074	4,560
Cash and cash equivalents	680,371	341,640
Investment securities available for sale, at fair value (allowance for credit losses of $221 and $366 at December 31, 2021 and 2020, respectively)	906,603	676,711
Equity securities, at fair value	9,529	9,424
Loans	5,224,801	5,103,331
Allowance for credit losses on loans	(51,062)	(60,443)
Total loans, net	5,173,739	5,042,888
Loans held for sale	32,045	138,090
Premises and equipment, net	70,792	74,124
Operating lease right-of-use assets	8,428	9,177
Other real estate owned	12,059	20,247
Nonmarketable equity securities	36,341	56,596
Accrued interest receivable	19,470	23,545
Loan servicing rights, at lower of cost or fair value	28,865	40,154
Goodwill	161,904	161,904
Other intangible assets, net	24,374	28,382
Cash surrender value of life insurance policies	148,378	146,004
Other assets	130,907	99,654
Total assets	7,443,805	6,868,540
Deposits:
Noninterest-bearing	2,245,701	1,469,579
Interest-bearing	3,864,947	3,631,437
Total deposits	6,110,648	5,101,016
Short-term borrowings	76,803	68,957
FHLB advances and other borrowings	310,171	779,171
Subordinated debt	139,091	169,795
Trust preferred debentures	49,374	48,814
Operating lease liabilities	10,714	11,958
Other liabilities	83,167	67,438
Total liabilities	6,779,968	6,247,149
Shareholders’ Equity:
Common stock, $0.01 par value; 40,000,000 shares authorized; 22,050,537 and 22,325,471 shares issued and outstanding at December 31, 2021 and 2020, respectively	221	223
Capital surplus	445,907	453,410
Retained earnings	212,472	156,327
Accumulated other comprehensive income	5,237	11,431
Total shareholders’ equity	663,837	621,391
Total liabilities and shareholders’ equity	$ 7,443,805	$ 6,868,540

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 221	$ 366
Common stock, par value (in USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	22,050,537	22,325,471
Common stock, shares outstanding (in shares)	22,050,537	22,325,471

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Loans:
Taxable	$ 213,922	$ 217,459	$ 218,416
Tax exempt	2,470	3,110	3,593
Loans held for sale	1,115	1,881	1,375
Investment securities:
Taxable	13,898	14,789	14,690
Tax exempt	3,336	3,532	4,098
Nonmarketable equity securities	2,348	2,638	2,395
Federal funds sold and cash investments	728	1,479	4,951
Total interest income	237,817	244,888	249,518
Interest expense:
Deposits	10,957	21,498	34,194
Short-term borrowings	86	178	835
FHLB advances and other borrowings	8,443	12,033	13,935
Subordinated debt	8,705	9,730	7,404
Trust preferred debentures	1,951	2,313	3,335
Total interest expense	30,142	45,752	59,703
Net interest income	207,675	199,136	189,815
Provision for credit losses:
Provision for credit losses on loans	3,950	43,149	16,985
Provision for credit losses on unfunded commitments	(412)	846	0
Provision for other credit losses	(145)	366	0
Total provision for credit losses	3,393	44,361	16,985
Net interest income after provision for credit losses	204,282	154,775	172,830
Noninterest income:
Wealth management revenue	26,811	22,802	21,832
Commercial FHA revenue	1,414	6,007	15,309
Residential mortgage banking revenue	5,526	9,812	2,928
Service charges on deposit accounts	8,348	8,603	11,027
Interchange revenue	14,500	12,266	11,992
Gain on sales of investment securities, net	537	1,721	674
Impairment on commercial mortgage servicing rights	(7,532)	(12,337)	(2,139)
Company-owned life insurance	4,496	3,581	3,640
Other income	15,799	8,794	10,019
Total noninterest income	69,899	61,249	75,282
Noninterest expense:
Salaries and employee benefits	86,883	85,557	91,906
Occupancy and equipment	14,866	17,552	18,811
Data processing	24,595	22,643	21,390
Professional	10,971	7,234	8,783
Marketing	3,239	3,498	3,927
Communications	3,002	4,052	3,693
Amortization of intangible assets	5,855	6,504	7,090
Impairment related to facilities optimization	0	12,847	3,577
FHLB advances prepayment fees	8,536	4,872	0
Other expense	17,122	19,251	16,464
Total noninterest expense	175,069	184,010	175,641
Income before income taxes	99,112	32,014	72,471
Income taxes	17,795	9,477	16,687
Net income	81,317	22,537	55,784
Preferred stock dividends and premium amortization	0	0	46
Net income available to common shareholders	$ 81,317	$ 22,537	$ 55,738
Per common share data:
Basic earnings per common share (in dollars per share)	$ 3.58	$ 0.95	$ 2.28
Diluted earnings per share (in dollars per share)	$ 3.57	$ 0.95	$ 2.26
Weighted average common shares outstanding (in shares)	22,481,389	23,336,881	24,288,793
Weighted average diluted common shares outstanding (in shares)	22,547,353	23,346,126	24,493,431

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 81,317	$ 22,537	$ 55,784
Investment securities available for sale:
Unrealized gains (losses) that occurred during the period	(12,553)	6,454	13,847
Provision for (recapture of) credit loss expense	(145)	366	0
Reclassification adjustment for realized net gains on sales of investment securities included in net income	(537)	(1,721)	(674)
Income tax effect	3,640	(1,402)	(3,623)
Change in investment securities available for sale, net of tax	(9,595)	3,697	9,550
Cash flow hedges:
Net unrealized derivative gains on cash flow hedges	6,851	403	0
Reclassification adjustment for realized net gains on cash flow hedges included in net income	(2,159)	0	0
Income tax effect	(1,291)	(111)	0
Change in cash flow hedges, net of tax	3,401	292	0
Other comprehensive income (loss), net of tax	(6,194)	3,989	9,550
Total comprehensive income	$ 75,123	$ 26,526	$ 65,334

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Adjustment	Adjusted Balance	Preferred stock	Preferred stock Adjusted Balance	Common stock	Common stock Adjusted Balance	Capital surplus	Capital surplus Adjusted Balance	Retained earnings	Retained earnings Adjusted Balance	Accumulated other comprehensive (loss) income	Accumulated other comprehensive (loss) income Adjusted Balance
Beginning balance at Dec. 31, 2018	$ 608,525			$ 2,781		$ 238		$ 473,833		$ 133,781		$ (2,108)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	55,784									55,784
Other comprehensive income (loss)	9,550											9,550
Acquisition of HomeStar Financial Group, Inc.	10,339					4		10,335
Preferred dividends declared	(191)									(191)
Preferred stock, premium amortization	0			(145)						145
Redemption of Series H preferred stock	(2,636)			(2,636)
Common dividends declared	(23,599)									(23,599)
Common stock repurchased	(4,019)					(2)		(4,017)
Share-based compensation expense	2,364							2,364
Issuance of common stock under employee benefit plans	5,794					4		5,790
Ending balance at Dec. 31, 2019	661,911	$ (7,172)	$ 654,739	0	$ 0	244	$ 244	488,305	$ 488,305	165,920	$ 158,748	7,442	$ 7,442
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	22,537									22,537
Other comprehensive income (loss)	3,989											3,989
Preferred dividends declared	0
Common dividends declared	(24,958)									(24,958)
Common stock repurchased	(39,615)					(23)		(39,592)
Share-based compensation expense	2,175							2,175
Issuance of common stock under employee benefit plans	2,524					2		2,522
Ending balance at Dec. 31, 2020	621,391			0		223		453,410		156,327		11,431
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	81,317									81,317
Other comprehensive income (loss)	(6,194)											(6,194)
Preferred dividends declared	0
Common dividends declared	(25,172)									(25,172)
Common stock repurchased	(11,692)					(5)		(11,687)
Share-based compensation expense	1,938							1,938
Issuance of common stock under employee benefit plans	2,249					3		2,246
Ending balance at Dec. 31, 2021	$ 663,837			$ 0		$ 221		$ 445,907		$ 212,472		$ 5,237

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Stockholders' Equity [Abstract]
Common dividend declared (in dollars per share)	$ 1.12	$ 1.07	$ 0.97

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income	$ 81,317	$ 22,537	$ 55,784
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	3,393	44,361	16,985
Depreciation on premises and equipment	5,506	6,942	6,583
Amortization of intangible assets	5,855	6,504	7,090
Amortization of operating lease right-of-use asset	1,742	2,547	2,937
Amortization of loan servicing rights	3,242	3,518	2,820
Share-based compensation expense	1,938	2,175	2,364
Increase in cash surrender value of company-owned life insurance	(3,451)	(3,581)	(3,640)
Gain on proceeds from bank-owned life insurance	(1,045)	0	0
Investment securities amortization, net	4,196	3,411	3,757
Gain on sales of investment securities, net	(537)	(1,721)	(674)
Gain on termination of hedged interest rate swap	(2,159)	0	0
Gain on sales of other real estate owned	(473)	(78)	(185)
Impairment on other real estate owned	454	1,390	16
Origination of loans held for sale	(504,801)	(786,203)	(504,973)
Proceeds from sales of loans held for sale	739,954	1,218,950	949,745
Gain on loans sold and held for sale	(4,952)	(14,071)	(15,082)
Impairment on commercial mortgage servicing rights	7,532	12,337	2,139
Impairment related to facilities optimization	0	12,847	3,577
Net change in operating assets and liabilities:
Accrued interest receivable	4,075	(7,199)	1,399
Other assets	(31,974)	(30,269)	(5,191)
Accrued expenses and other liabilities	24,626	4,750	13,202
Net cash provided by operating activities	334,438	499,147	538,653
Cash flows from investing activities:
Purchases of investment securities available for sale	(469,789)	(266,514)	(200,231)
Proceeds from sales of investment securities available for sale	14,777	28,256	33,464
Maturities and payments on investment securities available for sale	208,377	214,036	239,760
Purchases of equity securities	(260)	(3,345)	(82)
Proceeds from sales of equity securities	0	0	105
Net increase in loans	(258,401)	(1,279,913)	(505,501)
Proceeds from sale of commercial FHA origination platform	0	7,502	0
Purchases of premises and equipment	(2,718)	(2,589)	(5,538)
Proceeds from sale of premises and equipment	647	0	0
Purchases of nonmarketable equity securities	0	(12,091)	(14,263)
Proceeds from sales of nonmarketable equity securities	20,255	0	12,684
Proceeds from sales of mortgage servicing rights held for sale	0	0	3,288
Proceeds from sales of other real estate owned	9,210	2,225	1,647
Purchases of company-owned life insurance	(550)	0	0
Proceeds from settlements of company-owned life insurance	2,672	0	0
Net cash (paid) acquired in acquisitions	(2,715)	0	69,879
Net cash used in investing activities	(478,495)	(1,312,433)	(364,788)
Cash flows from financing activities:
Net increase in deposits	1,009,632	556,762	148,344
Net increase (decrease) in short-term borrowings	7,846	(13,072)	(42,206)
Proceeds from FHLB borrowings	500,000	729,000	360,000
Payments made on FHLB borrowings and other borrowings	(977,536)	(447,832)	(515,047)
FHLB advances prepayment fees	8,536	4,872	0
Proceeds from issuance of subordinated debt, net of issuance costs	0	0	98,265
Payments made on subordinated debt	(31,075)	(7,443)	(19,543)
Subordinated debt prepayment fees	0	193	1,778
Cash dividends paid on preferred stock	0	0	(191)
Redemption of preferred stock	0	(10)	(2,636)
Cash dividends paid on common stock	(25,172)	(24,958)	(23,599)
Common stock repurchased	(11,692)	(39,615)	(4,019)
Proceeds from issuance of common stock under employee benefit plans	2,249	2,524	5,794
Net cash provided by financing activities	482,788	760,421	6,940
Net increase (decrease) in cash and cash equivalents	338,731	(52,865)	180,805
Cash and cash equivalents:
Beginning of period	341,640	394,505	213,700
End of period	$ 680,371	$ 341,640	$ 394,505

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

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

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

Basis of Presentation

The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. Management of the Company has made a number of estimates and assumptions related to the reporting of assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. Actual results may differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of the results of operations for annual periods presented herein, have been included. Certain reclassifications of 2020 and 2019 amounts have been made to conform to the 2021 presentation but do not have an effect on net income or shareholders’ equity.

Principles of Consolidation

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

Subsequent Events

Management has evaluated subsequent events for recognition and disclosure through February 25, 2022, which is the date the financial statements were available to be issued.

Business Combinations

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

Cash and Cash Equivalents and Cash Flows

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

The following table summarizes supplemental cash flow information:


	Years Ended December 31,
(dollars in thousands)	2021		2020		2019
Supplemental disclosures of cash flow information:
Cash payments for:
Interest paid on deposits and borrowed funds	$	31,735	$	47,712	$	58,158
Income tax paid, net of refunds	7,759		2,977		479
Supplemental disclosures of noncash investing and financing activities:

Transfer of loans to loans held for sale	123,117		542,060		419,215
Transfer of loans to other real estate owned	805		16,736		3,819
Transfer of premises and equipment, net to assets held for sale	23		11,344		4,350
Transfer of loan servicing rights held for sale, at lower of cost or market to mortgage servicing rights	705		—		—

Investment Securities

The Company classifies its debt investment securities as available for sale or held to maturity at the time of purchase. Securities held to maturity are those debt instruments which the Company has the positive intent and ability to hold until maturity. Securities held to maturity are recorded at cost, adjusted for the amortization of premiums or accretion of discounts. All other debt securities are classified as available for sale. As of December 31, 2021, all investment securities were classified as available for sale. Investment securities available for sale are recorded at fair value with the unrealized gains and losses, net of the related tax effect, included in other comprehensive income. The related accumulated unrealized holding gains and losses are reported as a separate component of shareholders’ equity until realized.

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

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

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

Equity Securities

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

Nonmarketable Equity Securities

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

periodically evaluated for impairment based on ultimate recovery of par value. Both cash dividends and stock dividends are reported as income.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are classified as portfolio loans. Portfolio loans are carried at the principal balance outstanding, net of purchase premiums and discounts, and deferred loan fees and costs. Interest income is accrued on the unpaid principal balance. Accrued interest receivable on loans totaled $15.9 million and $19.9 million at December 31, 2021 and 2020, respectively, and was reported in accrued interest receivable on the consolidated balance sheets.

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

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

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

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

Nonperforming Loans. A loan is considered nonperforming when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Nonperforming loans include loans on nonaccrual status, loans past due 90 days or more and still accruing interest, and performing troubled debt restructured loans. Income from loans on nonaccrual status is recognized to the extent cash is received and when the principal balance is deemed collectible. Depending on a particular loan’s circumstances, we measure impairment based upon either the present value of expected future cash flows discounted at the effective interest rate, the observable market price, or the fair value of the collateral less estimated costs to sell if the loan is collateral dependent. A loan is considered collateral dependent when repayment is based solely on the liquidation of the collateral. Fair value, where possible, is determined by independent appraisals, typically on an annual basis. Between appraisal periods, the fair value may be adjusted based on specific events, such as if deterioration of quality of the collateral comes to our attention as part of our problem loan monitoring process, or if discussions with the borrower lead us to believe the last appraised value no longer reflects the actual market for the collateral. The impairment amount is charged-off to the allowance if deemed not collectible or is set up as a specific reserve.

Allowance for Credit Losses on Loans

The Company adopted the current expected credit loss model under Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) on January 1, 2020 using the modified retrospective approach. Results for the periods beginning after January 1, 2020 are presented under ASU 2016-13 while prior period amounts are reported in accordance with the incurred loss model under previously applicable U.S. GAAP. The transition adjustment included an increase in the allowance for credit losses on loans of $12.8 million and an increase in the allowance on unfunded commitments of $0.3 million.

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

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

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

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

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


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

For each loan pool, we measure expected credit losses over the life of each loan utilizing a combination of models which measure (i) probability of default (“PD”), which is the likelihood that loan will stop performing or default, (ii) loss given default (“LGD”), which is the expected loss rate for loans in default, (iii) assumed prepayment speed, which is the likelihood that a loan will prepay or pay-off prior to maturity, and (iv) exposure at default (“EAD”), which is the estimated outstanding principal balance of the loans upon default, including the expected funding of unfunded commitments outstanding as of the

measurement date. For certain commercial loan portfolios, the PD is calculated using a transition matrix to determine the likelihood of a customer’s risk grade migrating from one specified range of risk grades to a different specified range. Expected credit losses are calculated as the product of PD (adjusted for prepayment), LGD and EAD. This methodology builds on default probabilities already incorporated into our risk grading process by utilizing pool-specific historical loss rates to calculate expected credit losses. These pool-specific historical loss rates may be adjusted for current macroeconomic assumptions, as further discussed below, and other factors such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated as of the measurement date. Each time we measure expected credit losses, we assess the relevancy of historical loss information and consider any necessary adjustments to address any differences in asset-specific characteristics.

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

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

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

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

Specific reserves reflect expected credit losses on loans identified for evaluation or individually considered nonperforming. These loans no longer have similar risk characteristics to collectively evaluated loans due to changes in credit

risk, borrower circumstances, recognition of write-offs, or cash collections that have been fully applied to principal on the basis of nonaccrual policies. At a minimum, the population of loans subject to individual evaluation include individual loans where it is probable we will be unable to collect all amounts due, according to the original contractual terms. These include, nonaccrual loans with a balance greater than $500,000, accruing loans 90 days past due or greater with a balance greater than $100,000, specialty lending relationships and other loans as determined by management. Allowance for credit losses for consumer and residential loans are, primarily, determined by meaningful pools of similar loans and are evaluated on a quarterly basis.

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

Loans Held for Sale

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

Mortgage Repurchase Reserve

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

Premises and Equipment

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

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

Operating Lease Right of Use Assets and Liabilities

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

The operating lease right of use assets represent the Company’s right to use an underlying asset for the lease term, and the operating lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease right of use assets and operating lease liabilities are recognized on the lease commencement date based on the present value of lease payments over the lease term. No significant judgments or assumptions were involved in developing the estimated operating lease liabilities as the Company’s operating lease liabilities largely represent future rental expenses associated with operating leases and the borrowing rates are based on publicly available interest rates.

Other Real Estate Owned

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

Goodwill and Intangible Assets

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

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

Loan Servicing Rights

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

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

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

Cash Surrender Value of Life Insurance Policies

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

Derivative Financial Instruments

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

We formally document all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedged transactions. This process includes linking all derivatives that are designated as cash flow hedges to specific assets and liabilities on the balance sheet or forecasted transactions. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items.

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

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

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

Allowance for Credit Losses on Unfunded Commitments

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

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on unfunded commitments is adjusted as a provision for credit loss expense on the consolidated income statement. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Expected utilization rates are compared to the current funded portion of the total commitment amount as a practical expedient for funded exposure at default. The allowance for credit losses on unfunded commitments totaled $1.9 million and $2.4 million at December 31, 2021 and 2020, respectively.

Income Taxes

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

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

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

Share-Based Compensation Plans

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

Comprehensive Income

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

Earnings per Share

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. 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 Company uses the equity method of accounting for investments in limited partnerships and has concluded this is the correct method of accounting

for these investments. The amendments in this update became effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The amendments are to be applied prospectively and did not have a material impact on the 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 which provides optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. ASU 2020-04 applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform and do 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, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. ASU 2020-04 was effective upon issuance and generally can be applied through December 31, 2022.

The Company has been monitoring its volume of commercial loans tied to LIBOR. In 2021, the Company began prioritizing SOFR as the preferred alternative reference rate with plans to cease booking LIBOR based commitments after the end of 2021. Loans with a maturity after June 2023 are being reviewed and monitored to ensure there is appropriate fallback language in place when LIBOR is no longer published. Loans with a maturity date before that time should naturally mature and be re-underwritten with the alternative index rate.

In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which addresses questions about whether Topic 848 can be applied to derivative instruments that do not reference a rate that is expected to be discontinued but that use an interest rate for margining, discounting, or contract price alignment that is expected to be modified as a result of reference rate reform, commonly referred to as the "discounting transition". The amendments clarify that certain optional expedients and exceptions in Topic 848 do apply to derivatives that are affected by the discounting transition. The amendments in ASU 2021-01 are effective immediately.

The Company believes the adoption of this guidance on activities subsequent to December 31, 2021 through December 31, 2022 will not have a material impact on the consolidated financial statements.

ACQUISITIONS AND DISPOSITIONS

12 Months Ended

Dec. 31, 2021

Business Combinations [Abstract]

ACQUISITIONS AND DISPOSITIONS

ATG Trust Company

On June 1, 2021, the Company completed its acquisition of substantially all of the trust assets of 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 $2.7 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 $0.4 million of transaction and integration costs associated with the acquisition were expensed during 2021.

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


(dollars in thousands)	ATG
Assets acquired:











Intangible assets	$	1,847




Other assets	1,269
Total assets acquired	3,116
Liabilities assumed:







Other liabilities	401

Net assets acquired and consideration paid	$	2,715



Intangible assets:

Customer relationship intangible	$	1,847



Estimated useful life	6 years

The identifiable assets acquired from ATG Trust included customer relationship intangibles are being amortized on a straight line basis as shown above.

Commercial FHA Origination Platform

On August 28, 2020, the Company announced that it had completed the sale of its commercial FHA origination platform to Dwight Capital, a nationwide mortgage banking firm headquartered in New York. The Company received proceeds of $7.5 million for the sale of the commercial FHA origination platform, owned by our subsidiary, Love Funding. As part of the asset sale, goodwill of $10.9 million was derecognized and was not deductible for tax purposes, generating tax expense of $3.0 million.

CASH AND DUE FROM BANKS	12 Months Ended
CASH AND DUE FROM BANKS	Dec. 31, 2021
Cash and Cash Equivalents [Abstract]
CASH AND DUE FROM BANKS	CASH AND DUE FROM BANKS The Bank is required to maintain cash reserves based on the level of certain of its deposit accounts. This reserve requirement may be met by funds on deposit with the FRB and cash on hand. In response to the COVID pandemic, the Federal Reserve lowered the reserve requirement ratios to 0% effective March 26, 2020, and therefore, the Bank had no required reserve balance at December 31, 2021 and 2020. The Bank maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Bank has not experienced any losses in such accounts. The Bank believes it is not exposed to any significant credit risk from cash and cash equivalents.

INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

Investment Securities Available for Sale

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


	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	$	65,347	$	—	$	430	$	—	$	64,917
U.S. government sponsored entities and U.S. agency securities	34,569		79		831		—		33,817
Mortgage-backed securities - agency	444,484		2,687		6,901		—		440,270
Mortgage-backed securities - non-agency	29,037		50		381		—		28,706
State and municipal securities	137,904		5,561		366		—		143,099
Corporate securities	193,354		3,128		467		221		195,794
Total investment securities available for sale	$	904,695	$	11,505	$	9,376	$	221	$	906,603


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

Investment securities with a carrying amount of $371.0 million and $327.0 million were pledged for public deposits at December 31, 2021 and 2020, respectively.

The following is a summary of the amortized cost and fair value of investment securities available for sale, by maturity, at December 31, 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	$	9,877	$	9,976
After one year through five years	137,694		139,456
After five years through ten years	244,626		248,197
After ten years	38,977		39,998
Mortgage-backed securities	473,521		468,976
Total investment securities available for sale	$	904,695	$	906,603

Proceeds from the sale of investment securities available for sale and the resulting gross realized gains and losses for the years ended December 31, 2021, 2020 and 2019 are summarized below:


(dollars in thousands)	2021		2020		2019
Investment securities available for sale
Proceeds from sales	$	14,777	$	28,256	$	33,464
Gross realized gains on sales	537		1,721		786
Gross realized losses on sales	—		—		(190)

The table below presents a rollforward by major security type for the year ended December 31, 2021 of the allowance for credit losses on investment securities available for sale held at period end:


(dollars in thousands)	State and municipal securities		Corporate securities		Total
Changes in ACL on investment securities available for sale:
For the year ended December 31, 2021
Balance, beginning of period	$	29	$	337	$	366
Current-period recapture of expected credit losses	(29)		(116)		(145)
Balance, end of period	$	—	$	221	$	221
For the year ended December 31, 2020
Balance, beginning of period	$	—	$	—	$	—
Current-period provision for expected credit losses	29		337		366
Balance, end of period	$	29	$	337	$	366

Unrealized losses and fair values for investment securities available for sale at December 31, 2021 and 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:


	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. Treasury securities	$	64,917	$	430	$	—	$	—	$	64,917	$	430
U.S. government sponsored entities and U.S. agency securities	17,487		263		9,432		568		26,919		831
Mortgage-backed securities - agency	317,372		6,633		9,051		268		326,423		6,901
Mortgage-backed securities - non-agency	24,095		381		—		—		24,095		381
State and municipal securities	27,324		270		2,538		96		29,862		366
Corporate securities	—		—		—		—		—		—
Total investment securities available for sale	$	451,195	$	7,977	$	21,021	$	932	$	472,216	$	8,909


	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


Corporate securities	20,010		522		—		—		20,010		522
Total investment securities available for sale	$	56,085	$	666	$	—	$	—	$	56,085	$	666

For all of the above investment securities available for sale, the unrealized losses are principally related to fluctuations in the current interest rate environment, and unrealized losses are considered to be temporary as the fair value is expected to recover as the securities approach their respective maturity dates. At December 31, 2021, 113 investment securities available for sale had unrealized losses with aggregate depreciation of 1.85% from their amortized cost basis. In analyzing an issuer’s financial condition, we consider whether the securities are issued by the federal government or its agencies and whether downgrades by bond rating agencies have occurred. The Company does not intend to sell and it is likely that the Company will not be required to sell the securities prior to their anticipated recovery.

Equity Securities

Equity securities are recorded at fair value and totaled $9.5 million and $9.4 million at December 31, 2021 and 2020, respectively.

Proceeds and gross realized gains and losses on sales of equity securities as well as net unrealized gains and losses on equity securities for the years ended December 31, 2021, 2020 and 2019 are summarized below:


(dollars in thousands)	2021		2020		2019
Equity securities
Proceeds from sales	$	—	$	—	$	105
Gross realized gains on sales	—		—		78
Gross realized losses on sales	—		—		—
Net unrealized gains (losses)	361		577		93

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

LOANS

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

LOANS

The following table presents total loans outstanding by portfolio class, at December 31, 2021 and 2020:


(dollars in thousands)	2021		2020
Commercial:
Commercial	$	770,670	$	937,382
Commercial other	679,518		748,193
Commercial real estate:
Commercial real estate non-owner occupied	1,105,333		871,451
Commercial real estate owner occupied	469,658		423,257
Multi-family	171,875		151,534
Farmland	69,962		79,731
Construction and land development	193,749		172,737
Total commercial loans	3,460,765		3,384,285
Residential real estate:
Residential first lien	274,412		358,329
Other residential	63,739		84,551
Consumer:
Consumer	106,008		80,642
Consumer other	896,597		785,460
Lease financing	423,280		410,064
Total loans, gross	$	5,224,801	$	5,103,331

Total loans include net deferred loan costs of $4.6 million and $0.7 million at December 31, 2021 and 2020, respectively, and unearned discounts of $46.1 million and $46.5 million within the lease financing portfolio at December 31, 2021 and 2020, respectively.

At December 31, 2021 and 2020, the Company had commercial real estate and residential real estate loans held for sale totaling $32.0 million and $138.1 million, respectively. During the years ended December 31, 2021 and 2020, the Company sold commercial real estate, residential real estate and consumer loans with proceeds totaling $740.0 million and $1.22 billion, 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. PPP loans of $52.5 million and $184.4 million as of December 31, 2021 and 2020, respectively, and commercial FHA warehouse lines of $91.9 million and $273.3 million as of December 31, 2021 and 2020, respectively, and 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 $13.9 million and $19.7 million at December 31, 2021 and 2020, respectively. The new loans, other additions, repayments and other reductions for the years ended December 31, 2021 and 2020, are summarized as follows:


(dollars in thousands)	2021		2020
Beginning balance	$	19,693	$	22,989
New loans and other additions	4,745		2,563
Repayments and other reductions	(10,569)		(5,859)
Ending balance	$	13,869	$	19,693

The following table presents, by loan portfolio, a summary of changes in the allowance for credit losses on loans for the years ended December 31, 2021, 2020 and 2019:


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
(dollars in thousands)	Commercial		Estate		Development		Estate		Consumer		Financing		Total
Changes in allowance for credit losses on loans in 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	648		1,031		(234)		(1,085)		864		2,726		3,950
Charge-offs	(6,465)		(3,524)		(448)		(398)		(1,158)		(3,427)		(15,420)
Recoveries	341		21		221		249		514		743		2,089
Balance, end of period	$	14,375	$	22,993	$	972	$	2,695	$	2,558	$	7,469	$	51,062

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

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

The Company utilizes a combination of models with measure probability of default and loss given default methodology in determining expected future credit losses.

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

The loss given default component is the percentage of defaulted loan balance that is ultimately charged off. As a method for estimating the allowance, a form of migration analysis is used that combines the estimated probability of loans experiencing default events and the losses ultimately associated with the loans experiencing those defaults. 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 loss given default approach produces segmented loss given default 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 probability of default segmentation, credit metrics are identified to further segment the financial assets. The Company utilizes risk ratings for the commercial portfolios and days past due for the consumer and the lease financing portfolios.

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


Risk state	Commercial loans risk rating	Consumer loans and equipment finance loans and leases days past due
1	0-5	0-14
2	6	15-29
3	7	30-59
4	8	60-89
Default	9+ and nonaccrual	90+ and nonaccrual

Expected Credit Losses

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

with other loans in the pool. The following table presents the amortized cost basis of individually evaluated loans on nonaccrual status as of December 31, 2021 and 2020:


	2021						2020
	Nonaccrual		Nonaccrual				Nonaccrual		Nonaccrual
	with		with no		Total		with		with no		Total
(dollars in thousands)	Allowance		Allowance		Nonaccrual		Allowance		Allowance		Nonaccrual
Commercial:
Commercial	$	4,681	$	2,275	$	6,956	$	3,498	$	—	$	3,498
Commercial Other	4,467		—		4,467		2,634		—		2,634
Commercial real estate:
Commercial real estate non-owner occupied	1,914		9,912		11,826		5,509		3,823		9,332
Commercial real estate owner occupied	2,164		1,340		3,504		3,598		3,227		6,825
Multi-family	201		1,967		2,168		7,921		2,325		10,246
Farmland	155		—		155		—		—		—
Construction and land development	83		—		83		2,131		693		2,824
Total commercial loans	13,665		15,494		29,159		25,291		10,068		35,359
Residential real estate:
Residential first lien	3,116		832		3,948		8,534		1,071		9,605
Other residential	836		—		836		2,437		—		2,437
Consumer:
Consumer	110		—		110		262		—		262

Lease financing	1,510		—		1,510		1,965		—		1,965
Total loans	$	19,237	$	16,326	$	35,563	$	38,489	$	11,139	$	49,628

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

There was no interest income recognized on nonaccrual loans during the years ended December 31, 2021, 2020 and 2019 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 $2.7 million, $3.3 million and $2.2 million during the years ended December 31, 2021, 2020 and 2019, respectively. The Company recognized interest income on commercial and commercial real estate loans modified under troubled debt restructurings of $0.1 million during each of the years ended December 31, 2021, 2020 and 2019.

Collateral Dependent Financial Assets

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

The table below presents the value of individually evaluated, collateral dependent loans by loan class, for borrowers experiencing financial difficulty, as of December 31, 2021 and 2020:


	Type of Collateral
(dollars in thousands)	Real Estate		Blanket Lien		Equipment		Total
December 31, 2021
Commercial:
Commercial	$	—	$	5,402	$	—	$	5,402
Commercial other	—		—		502		502
Commercial real estate:
Commercial real estate non-owner occupied	11,604		—		—		11,604
Commercial real estate owner occupied	1,336		—		—		1,336
Multi-Family	1,969		—		—		1,969









Total Collateral Dependent Loans	$	14,909	$	5,402	$	502	$	20,813

December 31, 2020



Commercial real estate:
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 December 31, 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 loans		Nonaccrual loans		Current loans		Total loans
Commercial:
Commercial	$	283	$	1,082	$	—	$	1,365	$	6,956	$	762,349	$	770,670
Commercial other	2,402		2,110		5		4,517		4,467		670,534		679,518
Commercial real estate:
Commercial real estate non-owner occupied	585		243		—		828		11,826		1,092,679		1,105,333
Commercial real estate owner occupied	232		730		—		962		3,504		465,192		469,658
Multi-family	—		—		—		—		2,168		169,707		171,875
Farmland	—		26		—		26		155		69,781		69,962
Construction and land development	195		195		—		390		83		193,276		193,749
Total commercial loans	3,697		4,386		5		8,088		29,159		3,423,518		3,460,765
Residential real estate:
Residential first lien	113		285		—		398		3,948		270,066		274,412
Other residential	456		151		—		607		836		62,296		63,739
Consumer:
Consumer	127		20		—		147		110		105,751		106,008
Consumer other	4,423		2,358		1		6,782		—		889,815		896,597
Lease financing	1,253		245		—		1,498		1,510		420,272		423,280
Total loans	$	10,069	$	7,445	$	6	$	17,520	$	35,563	$	5,171,718	$	5,224,801

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

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 are 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 Coronavirus Aid, Relief, and Economic Security Act, as amended by Section 541 of the Consolidated Appropriations Act, provided 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, that were not considered TDRs, totaled $13.3 million and $209.1 million at December 31, 2021 and 2020, respectively.

The Company’s TDRs are identified on a case-by-case basis in connection with the ongoing loan collection processes. The following table presents TDRs by loan portfolio as of December 31, 2021 and 2020:


	2021						2020
(dollars in thousands)	Accruing(1)		Non-accrual(2)		Total		Accruing(1)		Non-accrual(2)		Total
Commercial	$	833	$	1,422	$	2,255	$	967	$	558	$	1,525
Commercial real estate	1,522		3,302		4,824		866		4,314		5,180
Construction and land development	37		—		37		39		909		948
Residential real estate	3,128		784		3,912		988		3,705		4,693
Consumer	98		—		98		41		—		41
Lease financing	1,394		241		1,635		—		38		38
Total loans	$	7,012	$	5,749	$	12,761	$	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 $0.7 million and $0.8 million as of December 31, 2021 and 2020, respectively. The Company had no unfunded commitments in connection with TDRs at December 31, 2021 and 2020.

The following table presents a summary of loans by portfolio that were restructured during the years ended December 31, 2021, 2020 and 2019. There were no loans modified as TDRs within the previous twelve months that subsequently defaulted during the years ended December 31, 2021, 2020 and 2019:


	Commercial Loan Portfolio						Other Loan Portfolio
(dollars in thousands)	Commercial		Commercial real estate		Construction and land development		Residential real estate		Consumer		Lease financing		Total
For the year ended December 31, 2021:
Troubled debt restructurings:
Number of loans	16		3		1		10		6		9		45
Pre-modification outstanding balance	$	2,294	$	1,639	$	49	$	551	$	134	$	1,635	$	6,302
Post-modification outstanding balance	2,178		1,539		—		513		89		1,635		5,954





For the year ended December 31, 2020:
Troubled debt restructurings:
Number of loans	4		4		3		22		4		—		37
Pre-modification outstanding balance	$	989	$	797	$	1,010	$	2,334	$	34	$	—	$	5,164
Post-modification outstanding balance	967		383		900		2,172		33		—		4,455





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

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. In addition our specialty finance division does nationwide bridge lending for FHA and HUD developments and originates loans for multifamily, assisted and senior living and multi-use properties. Our equipment leasing business provides financing to business customers across the country.

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

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

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

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

Credit Quality Indicators

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

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

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


			December 31, 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	$	108,490	$	78,071	$	50,458	$	20,045	$	27,405	$	35,856	$	417,920	$	738,245
		Special mention	186		57		198		6,154		2		316		1,517		8,430
		Substandard	380		372		1,934		1,868		64		4,322		8,099		17,039
		Substandard – nonaccrual	52		—		612		177		242		169		5,704		6,956
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	109,108		78,500		53,202		28,244		27,713		40,663		433,240		770,670

	Commercial other	Acceptable credit quality	264,282		167,326		101,083		29,981		303		341		88,198		651,514
		Special mention	—		1,929		10,676		3,966		—		—		3,252		19,823
		Substandard	688		—		62		341		—		—		2,623		3,714
		Substandard – nonaccrual	10		158		3,894		384		—		—		21		4,467
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	264,980		169,413		115,715		34,672		303		341		94,094		679,518

Commercial real estate	Non-owner occupied	Acceptable credit quality	441,483		154,379		134,507		20,524		55,207		182,465		5,258		993,823
		Special mention	26		6,341		14,177		2,296		711		2,272		—		25,823
		Substandard	6,196		817		8,825		20,572		14,857		22,344		250		73,861
		Substandard – nonaccrual	169		992		6,206		—		195		4,264		—		11,826
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	447,874		162,529		163,715		43,392		70,970		211,345		5,508		1,105,333

	Owner occupied	Acceptable credit quality	141,084		69,415		47,187		35,974		30,583		98,442		1,886		424,571
		Special mention	150		24		187		161		13,087		4,540		32		18,181
		Substandard	4,192		1,127		10,810		205		297		6,466		305		23,402
		Substandard – nonaccrual	—		318		129		336		72		2,649		—		3,504
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	145,426		70,884		58,313		36,676		44,039		112,097		2,223		469,658

	Multi-family	Acceptable credit quality	88,329		20,080		1,973		25,450		1,414		18,642		2,241		158,129
		Special mention	—		451		—		—		—		—		—		451
		Substandard	988		—		—		—		—		10,139		—		11,127
		Substandard – nonaccrual	—		—		123		—		—		2,045		—		2,168
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	89,317		20,531		2,096		25,450		1,414		30,826		2,241		171,875

	Farmland	Acceptable credit quality	15,689		14,966		3,931		3,162		7,996		19,305		1,196		66,245
		Special mention	—		66		1,236		145		153		240		—		1,840
		Substandard	371		76		166		211		—		898		—		1,722
		Substandard – nonaccrual	—		—		—		105		—		—		50		155
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	16,060		15,108		5,333		3,623		8,149		20,443		1,246		69,962

Construction and land development		Acceptable credit quality	65,053		65,274		19,269		10,029		2,511		3,841		19,452		185,429
		Special mention	—		—		5,014		—		—		221		—		5,235
		Substandard	—		1,336		—		—		—		—		—		1,336
		Substandard – nonaccrual	—		—		43		—		—		40		—		83
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	1,465		37		—		—		—		164		—		1,666
		Subtotal	66,518		66,647		24,326		10,029		2,511		4,266		19,452		193,749

Total		Acceptable credit quality	1,124,410		569,511		358,408		145,165		125,419		358,892		536,151		3,217,956
		Special mention	362		8,868		31,488		12,722		13,953		7,589		4,801		79,783
		Substandard	12,815		3,728		21,797		23,197		15,218		44,169		11,277		132,201
		Substandard – nonaccrual	231		1,468		11,007		1,002		509		9,167		5,775		29,159
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	1,465		37		—		—		—		164		—		1,666
Total Commercial loans			$	1,139,283	$	583,612	$	422,700	$	182,086	$	155,099	$	419,981	$	558,004	$	3,460,765


			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 portfolio, which includes residential real estate, consumer and lease financing loans, based primarily on the aging status of the loan and payment activity. Accordingly, loans on nonaccrual status, loans past due 90 days or more and still accruing interest, and loans modified under troubled debt restructurings are considered to be nonperforming for purposes of credit quality evaluation. The following tables present the recorded investment of our other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming at December 31, 2021 and 2020:


			December 31, 2021
			Term Loans Amortized Cost Basis by Origination Year
			2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
Residential real estate	Residential first lien	Performing	$	38,508	$	31,920	$	24,311	$	30,842	$	48,276	$	93,462	$	888	$	268,207
		Nonperforming	—		108		173		780		764		4,380		—		6,205
		Subtotal	38,508		32,028		24,484		31,622		49,040		97,842		888		274,412

	Other residential	Performing	888		679		1,520		1,950		1,211		1,559		54,225		62,032
		Nonperforming	—		—		10		16		128		100		1,453		1,707
		Subtotal	888		679		1,530		1,966		1,339		1,659		55,678		63,739

Consumer	Consumer	Performing	65,915		14,955		7,874		8,728		3,025		2,582		2,721		105,800
		Nonperforming	89		5		3		14		24		71		2		208
		Subtotal	66,004		14,960		7,877		8,742		3,049		2,653		2,723		106,008

	Consumer other	Performing	474,385		323,437		63,463		12,635		3,888		5,447		13,341		896,596
		Nonperforming	—		—		—		—		—		—		1		1
		Subtotal	474,385		323,437		63,463		12,635		3,888		5,447		13,342		896,597

Leases financing		Performing	154,803		124,575		86,402		43,536		9,077		1,983		—		420,376
		Nonperforming	—		757		1,001		1,012		95		39		—		2,904
		Subtotal	154,803		125,332		87,403		44,548		9,172		2,022		—		423,280

Total
		Performing	734,499		495,566		183,570		97,691		65,477		105,033		71,175		1,753,011
		Nonperforming	89		870		1,187		1,822		1,011		4,590		1,456		11,025
Total other loans			$	734,588	$	496,436	$	184,757	$	99,513	$	66,488	$	109,623	$	72,631	$	1,764,036


			December 31, 2020
			Term Loans Amortized Cost Basis by Origination Year
			2020		2019		2018		2017		2016		Prior		Revolving loans		Total
Residential real estate	Residential first lien	Performing	$	32,322	$	27,071	$	49,039	$	99,658	$	81,525	$	58,107	$	405	$	348,127
		Nonperforming	—		196		1,074		933		1,030		6,969		—		10,202
		Subtotal	32,322		27,267		50,113		100,591		82,555		65,076		405		358,329

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

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

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

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

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

PREMISES AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

PREMISES AND EQUIPMENT, NET

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


(dollars in thousands)	2021		2020
Land	$	15,696	$	16,158
Buildings and improvements	67,143		65,932
Furniture and equipment	33,545		33,202
Total	116,384		115,292
Accumulated depreciation	(45,592)		(41,168)
Premises and equipment, net	$	70,792	$	74,124

Depreciation expense for the years ended December 31, 2021, 2020 and 2019 was $5.5 million, $6.9 million, and $6.6 million, respectively.

The Company closed 13 branches, or 20% of its branch network, and vacated approximately 23,000 square feet of corporate office space between September 3, 2020 and December 31, 2020, recording $12.7 million of asset impairment on existing banking facilities, including $2.4 million of asset impairment on right-of-use assets, and $0.8 million in other related charges, all of which was recognized in other expense in the consolidated statements of income

In 2019, the Company closed one facility and consolidated two additional facilities as a result of the acquisition of HomeStar, as further discussed in Note 2 to the consolidated financial statements. In addition, the Company planned to consolidate three other existing facilities in other areas of its footprint, one of which closed in 2019 and the remaining two facilities closed in January of 2020. Consequently, during the year ended December 31, 2019, the Company recorded

$3.2 million of asset impairment on banking facilities to be closed, which was recognized in other expense in the consolidated statements of income.

Assets held for sale were $2.3 million and $4.2 million at December 31, 2021 and 2020, respectively, which are included in other assets in our consolidated balance sheets.

LEASES

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

LEASES

The Company had operating lease right-of-use assets of $8.4 million and $9.2 million as of December 31, 2021 and 2020, respectively, and operating lease liabilities of $10.7 million and $12.0 million at the same dates, respectively.

As a result of the branch and corporate office reductions in 2020, discussed in Note 6, the Company recorded $2.4 million of asset impairment on existing right-of-use assets, which was recognized in other expense in the consolidated statements of income.

The operating leases, primarily for banking offices and operating facilities, have remaining lease terms of 6 months to 11 years, some of which may include options to extend the lease terms for up to an additional 10 years. The options to extend are included if they are reasonably certain to be exercised.

Information related to operating leases for the years ended December 31, 2021 and 2020 was as follows:


(dollars in thousands)	2021			2020
Operating lease cost	$	2,080		$	2,943
Operating cash flows related to leases	2,566			3,280
Right-of-use assets obtained in exchange for lease obligations	1,118			1,616
Right-of-use assets derecognized due to terminations or impairment	(210)			(4,467)
Weighted average remaining lease term	7.58 years			8.10 years
Weighted average discount rate	2.85		%	2.90		%

Net rent expense under operating leases, included in occupancy and equipment expense, was $1.4 million, $2.3 million and $2.8 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The projected minimum rental payments under the terms of the leases as of December 31, 2021 are as follows:


(dollars in thousands)	Amount
Year ending December 31,
2022	$	2,180
2023	2,094
2024	1,799
2025	894
2026	763
Thereafter	4,251
Total future minimum lease payments	11,981
Less imputed interest	(1,267)
Total operating lease liabilities	$	10,714

LOAN SERVICING RIGHTS

12 Months Ended

Dec. 31, 2021

Transfers and Servicing [Abstract]

LOAN SERVICING RIGHTS

A summary of loan servicing rights at December 31, 2021 and 2020 is as follows:


	2021				2020
(dollars in thousands)	Serviced Loans		Carrying Value		Serviced Loans		Carrying Value
Commercial FHA	$	2,650,531	$	27,386	$	3,499,258	$	38,322
SBA	50,043		$	774	49,223		$	954
Residential(1)	302,618		$	705	382,302		$	878
Total	$	3,003,192	$	28,865	$	3,930,783	$	40,154

(1)At December 31, 2020, residential mortgage servicing rights were classified as held for sale and carried at fair value less estimated costs to sell. These were reclassified to loan servicing rights effective December 31, 2021.

Commercial FHA Mortgage Loan Servicing

Changes in our commercial FHA loan servicing rights for the years ended December 31, 2021, 2020 and 2019 are summarized as follows:


(dollars in thousands)	2021		2020		2019
Loan servicing rights:
Balance, beginning of period	$	38,322	$	57,637	$	56,252
Originated servicing	—		1,128		4,124
Amortization	(2,965)		(3,162)		(2,739)
Refinancing fee received from third party	(439)		—		—
Permanent impairment	(7,532)		(17,281)		—
Balance, end of period	27,386		38,322		57,637
Valuation allowances:
Balance, beginning of period	—		4,944		2,805
Additions	—		12,337		2,698
Reductions	—		(17,281)		(559)
Balance, end of period	—		—		4,944
Loan servicing rights, net	$	27,386	$	38,322	$	52,693
Fair value:
At beginning of period	$	38,322	$	52,693	$	53,447
At end of period	$	28,368	$	38,322	$	52,693

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 8.24% and 8.18% at December 31, 2021 and 2020, respectively, while the weighted average discount rate was 11.87% and 11.48% for the same periods, respectively.

- 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
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-Paragraph 1A
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Reference 2: 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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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETSAt December 31, 2021 and 2020, goodwill totaled $161.9 million. Goodwill is tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. The Company performed its most recent annual goodwill impairment test as of August 31, 2021 and concluded that no impairment existed as of that date. No events or circumstances since the August 31, 2021 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists, for either of the Company's segments.

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


(dollars in thousands)	2021		2020
Banking	$	157,158	$	157,158

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

The Company’s intangible assets consist of core deposit and customer relationship intangibles. Intangible assets are assessed for impairment at least annually or more frequently if events and circumstances exists that indicate that an intangible impairment test should be performed. The Company has not identified any events or changes in circumstances that would indicate a change in the recoverability of the carrying value of intangible assets and, therefore, no impairment was recognized during 2021, 2020 or 2019.

The Company's intangible assets as of December 31, 2021 and 2020 are summarized as follows:


	2021						2020
(dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Total		Gross Carrying Amount		Accumulated Amortization		Total
Core deposit intangibles	$	57,012	$	(40,603)	$	16,409	$	57,012	$	(36,005)	$	21,007
Customer relationship intangibles	15,918		(7,953)		7,965		14,071		(6,696)		7,375
Total intangible assets	$	72,930	$	(48,556)	$	24,374	$	71,083	$	(42,701)	$	28,382

In conjunction with the acquisition of ATG Trust, the Company recorded $1.8 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 $5.9 million, $6.5 million and $7.1 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Estimated amortization expense for future years is as follows:


(dollars in thousands)	Amount
Year ending December 31,
2022	$	5,208
2023	4,433
2024	3,717
2025	2,966
2026	2,450
Thereafter	5,600
Total	$	24,374

DERIVATIVE INSTRUMENTS

12 Months Ended

Dec. 31, 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 tables summarize the interest rate lock commitments and forward commitments to sell mortgage-backed securities held by the Company, their notional amount and estimated fair values at December 31, 2021 and 2020:


	Notional Amount				Fair Value Gain
(dollars in thousands)	2021		2020		2021		2020
Derivative Instruments (included in other assets):
Interest rate lock commitments	$	66,216	$	136,227	$	410	$	2,217
Forward commitments to sell mortgage-backed securities	60,427		218,126		—		—
Total	$	126,643	$	354,353	$	410	$	2,217


	Notional Amounts				Fair Value Loss
(dollars in thousands)	2021		2020		2021		2020
Derivative Instruments (included in other liabilities):
Forward commitments to sell mortgage-backed securities	$	18,362	$	33,240	$	19	$	309

During the years ended December 31, 2021, 2020 and 2019, the Company recognized net losses of $1.5 million, $1.4 million and $1.1 million, respectively, on derivative instruments in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income.

Cash Flow Hedges

In 2020, the Company entered into interest rate swap agreements, which qualify as cash flow hedges, to manage the risk of changes in future cash flows due to interest rate fluctuations. The following table summarizes the Company's receive-fixed, pay-variable interest rate swaps on certain FHLB advances at December 31, 2020:


(dollars in thousands)	2020
Notional Amount	$	100,000
Average remaining life in years	5.3
Weighted average pay rate	0.57		%
Weighted average receive rate	0.22		%

During 2021, the Company terminated the above interest rate swap agreements in conjunction with the repayment of FHLB advances of $100.0 million. A net gain of $2.2 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 pay-fixed, receive-variable interest rate swaps on certain FHLB or other fixed-rate advances. These swaps are effective beginning in April 2023. The Company pays or receives the net interest amount quarterly based on the respective hedge agreement and includes the amount as part of FHLB advances interest expense on the consolidated statements of income.

Quarterly, the effectiveness evaluation is based on the fluctuation of the interest the Company pays to the FHLB for the debt as compared to the three-month LIBOR interest received from the counterparty. At December 31, 2021, the $5.1 million fair value of the cash flow hedges was included in other assets in the consolidated balance sheets. The tax effected amount of $3.7 million was included in accumulated other comprehensive income. There were no amounts recorded in the consolidated statements of income for the year ended December 31, 2021, related to ineffectiveness.

Interest Rate Swap Contracts

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

The notional amounts of these customer derivative instruments and the offsetting counterparty derivative instruments were $7.9 million and $8.5 million at December 31, 2021 and 2020, respectively. The fair value of the customer derivative

instruments and the offsetting counterparty derivative instruments was $0.4 million and $0.8 million at December 31, 2021 and 2020, respectively, which are included in other assets and other liabilities, respectively, on the consolidated balance sheets.

DEPOSITS

12 Months Ended

Dec. 31, 2021

Deposits [Abstract]

DEPOSITS

The following table summarizes the classification of deposits at December 31, 2021 and 2020:


(dollars in thousands)	2021		2020
Noninterest-bearing demand	$	2,245,701	$	1,469,579
Interest-bearing:
Checking	1,663,021		1,568,888
Money market	869,067		785,871
Savings	679,115		597,966
Time	653,744		678,712
Total deposits	$	6,110,648	$	5,101,016

Included in time deposits are uninsured time certificates of $143.5 million and $88.3 million as of December 31, 2021 and 2020, respectively.

As of December 31, 2021, the scheduled maturities of time deposits were as follows:


(dollars in thousands)	Amount
Year Ending December 31,
2022	$	377,823
2023	134,092
2024	82,430
2025	19,778
2026	39,597
Thereafter	24
Total	$	653,744

SHORT-TERM BORROWINGS

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

SHORT-TERM BORROWINGS

The following table presents the distribution of short-term borrowings and related weighted average interest rates for each of the years ended December 31, 2021 and 2020:


	Repurchase Agreements
(dollars in thousands)	2021			2020
Outstanding at period-end	$	76,803		$	68,957
Average amount outstanding	68,986			60,306
Maximum amount outstanding at any month end	77,497			77,136
Weighted average interest rate:
During period	0.12		%	0.30		%
End of period	0.13		%	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 $78.3 million and $76.5 million at December 31, 2021 and 2020, respectively, were pledged for securities sold under agreements to repurchase.

The Company had available lines of credit of $55.9 million and $54.4 million at December 31, 2021 and 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 $64.8 million and $68.1 million at December 31, 2021 and 2020, respectively. There were no outstanding borrowings at December 31, 2021 and 2020.

At December 31, 2021, the Company had federal funds lines of credit totaling $45.0 million. These lines of credit were unused at December 31, 2021.

FHLB ADVANCES AND OTHER BORROWINGS

12 Months Ended

Dec. 31, 2021

FHLB ADVANCES AND OTHER BORROWINGS

FHLB ADVANCES AND OTHER BORROWINGS

The following table summarizes our FHLB advances and other borrowings at December 31, 2021 and 2020:


(dollars in thousands)	2021		2020
Midland States Bancorp, Inc.

Series G redeemable preferred stock – 171 and 171 shares at December 31, 2021 and 2020, respectively at $1,000 per share	$	171	$	171
Midland States Bank
FHLB advances – fixed rate, fixed term at rates averaging 0.24% at December 31, 2020	—		304,000
FHLB advances – putable fixed rate at rates averaging 1.48% and 2.01% at December 31, 2021 and 2020, respectively – maturing through February 2030 with call provisions through February 2022	210,000		475,000
FHLB advances - SOFR floater at rates averaging 1.67% at December 31, 2021 - maturing in October 2023	100,000		—
Total FHLB advances and other borrowings	$	310,171	$	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 $2.10 billion and $1.86 billion at December 31, 2021 and 2020, respectively.

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


(dollars in thousands)	Amount
Year Ending December 31,
2022	$	—
2023	140,000
2024	70,000
2025	—
2026	—
Thereafter	100,171
Total	$	310,171

SUBORDINATED DEBT

12 Months Ended

Dec. 31, 2021

Subordinated Borrowings [Abstract]

SUBORDINATED DEBT

The following table summarizes the Company’s subordinated debt at December 31, 2021 and 2020:


(dollars in thousands)	2021		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	39,626		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	72,042		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	26,877		26,829
Total subordinated debt	$	139,091	$	169,795

In June 2015, the Company issued, through a private placement, $55.3 million aggregate principal amount of subordinated debentures. The transaction was structured in two tranches: (1) $40.3 million, maturing on June 18, 2025 with a redemption option on or after June 18, 2020, with a fixed rate of interest of 6.00% for the first five years, payable semiannually in arrears beginning December 18, 2015, and a floating rate of interest equivalent to the three-month LIBOR plus 435 basis points thereafter, payable quarterly beginning on September 18, 2020; and (2) $15.0 million, maturing on June 18, 2025, with a fixed rate of interest of 6.50%, payable semiannually in arrears beginning December 18, 2015. The value of the subordinated debentures was reduced by $0.9 million of debt issuance costs, which are being amortized on a straight line basis through the earlier of the redemption option or maturity date of the subordinated debentures. Of the $40.3 million subordinated debentures the Company repurchased $2.0 million during the fourth quarter of 2019, $7.3 million during the first quarter of 2020 and the remaining $31.1 million during the second quarter of 2021. The Company recognized losses of $1.4 million in the fourth quarter of 2019 and $0.2 million in the first quarter of 2020, which included the premium paid for the repurchase and the remaining unamortized debt issuance costs on such repurchases. No gain or loss was recognized on the 2021 repurchase. The Company also repurchased $14.5 million of the $15.0 million subordinated debentures during the fourth quarter of 2019 and recognized a loss of $0.4 million which included the premium paid for the repurchase and the remaining unamortized debt issuance costs on such repurchases. These losses were recognized in other noninterest expense in the consolidated statements of income.

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

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

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

TRUST PREFERRED DEBENTURES

12 Months Ended

Dec. 31, 2021

TRUST PREFERRED DEBENTURES

TRUST PREFERRED DEBENTURES

The following table summarizes the Company’s trust preferred debentures at December 31, 2021 and 2020:


(dollars in thousands)	2021		2020
Midland States Preferred Securities Trust – variable interest rate equal to LIBOR plus 2.75%, which was 2.87% and 2.96% at December 31, 2021 and 2020, respectively – $10,310 maturing April 23, 2034	$	10,279	$	10,276
Grant Park Statutory Trust I – variable interest rate equal to LIBOR plus 2.85%, which was 2.98% and 3.06%, at December 31, 2021 and 2020, respectively – $3,093 maturing January 23, 2034	2,363		2,314
Love Savings/Heartland Capital Trust III – variable interest rate equal to LIBOR plus 1.75%, which was 1.95% and 1.97% at December 31, 2021 and 2020, respectively – $20,619 maturing December 31, 2036	14,647		14,442
Love Savings/Heartland Capital Trust IV – variable interest rate equal to LIBOR plus 1.47%, which was 1.65% and 1.70% at December 31, 2021 and 2020, respectively – $20,619 maturing September 6, 2037	13,830		13,621
Centrue Statutory Trust II - variable interest rate equal to LIBOR plus 2.65%, which was 2.87% and 2.88% at December 31, 2021 and 2020, respectively - $10,310 maturing June 17, 2034	8,255		8,161
Total trust preferred debentures	$	49,374	$	48,814

On March 26, 2004, the Company formed Midland States Preferred Securities Trust (“Midland Trust”), a statutory trust under the Delaware Statutory Trust Act. Midland Trust issued a pool of $10.0 million of floating rate cumulative trust preferred securities with a liquidation amount of $1,000 per security. The Company issued $10.3 million of subordinated debentures to the Midland Trust in exchange for ownership of all the common securities of the Midland Trust. The Company is

not considered the primary beneficiary of the Midland Trust; therefore, the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures, net of unamortized debt issuance costs, are shown as a liability. The Company’s investment in the common stock of the trust was $0.3 million and is included in other assets.

In conjunction with the acquisition of Grant Park Bancshares, Inc. (“Grant Park”) on June 5, 2013, the Company assumed $3.1 million of subordinated debentures that were recorded at a fair value of $1.8 million at the time of acquisition. On December 19, 2003, Grant Park Statutory Trust I (“Grant Park Trust”) issued 3,000 shares of preferred securities with a liquidation amount of $1,000 per security. Grant Park issued $3.1 million of subordinated debentures to the Grant Park Trust in exchange for ownership of all the common securities of the trust. The Company is not considered the primary beneficiary of the Grant Park Trust; therefore, the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures, net of unamortized purchase discount, are shown as a liability. The Company’s investment in the common stock of the trust was $0.1 million and is included in other assets.

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

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

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

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

INCOME TAXES

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

The components of income taxes for the years ended December 31, 2021, 2020 and 2019 were as follows:


(dollars in thousands)	2021		2020		2019
Federal:
Current	$	10,044	$	10,924	$	2,318
Deferred	7,926		(3,852)		8,287
State:
Current	144		1,271		1,761
Deferred	(319)		1,134		4,321
Total income tax expense	$	17,795	$	9,477	$	16,687

The Company’s income tax expense differed from the statutory federal rate of 21% for the years ended December 31, 2021, 2020 and 2019 as follows:


(dollars in thousands)	2021		2020		2019
Expected income taxes	$	20,814	$	6,723	$	15,218
Less income tax effect of:
Tax-exempt income, net	(2,499)		(2,398)		(2,568)

State tax, net of federal benefit	5,465		1,900		4,805

State tax settlement, net of federal expense	(5,614)		—		—
Equity-based compensation benefit	(93)		239		(484)
Non-deductible transaction costs	—		—		110
Disposition of nondeductible goodwill	—		2,287		—
Valuation allowance	47		10		62

Other	(325)		716		(456)
Actual income tax expense	$	17,795	$	9,477	$	16,687

On June 29, 2021, the Company announced the settlement of a prior tax issue related to the treatment of gains recognized on FDIC-assisted transactions that resulted in a $6.8 million tax benefit that was recognized in 2021.

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

Deferred tax assets, net in the accompanying consolidated balance sheets at December 31, 2021 and 2020 include the following amounts of deferred tax assets and liabilities:


(dollars in thousands)	2021		2020
Assets:
Allowance for credit losses on loans	$	14,042	$	16,622
Deferred compensation	2,177		2,152
Loans	1,835		2,772

Tax credits	1,067		1,047



Net operating losses	10,113		11,231



Fair value adjustment on investments	879		1,067
Premises and equipment	—		433

Operating lease liabilities	2,946		3,289
Other, net	3,519		3,861
Deferred tax assets	36,578		42,474
Valuation allowance	(118)		(71)
Deferred tax assets, net of valuation allowance	36,460		42,403
Liabilities:
Premises and equipment	472		—
Unrealized gain on securities	569		4,169
Mortgage servicing rights	5,958		8,315
Fair value adjustment on trust preferred debentures	4,264		4,417

Deferred loan costs, net of fees	3,444		3,632
Intangible assets	5,651		6,921


Software development costs	1,446		1,522
Leased equipment	22,297		17,910
Operating lease right-of-use assets	2,318		2,524
Other, net	3,619		1,315
Deferred tax liabilities	50,038		50,725
Deferred tax liabilities, net	$	(13,578)	$	(8,322)

At December 31, 2021 and 2020, the accumulation of the prior year’s earnings representing tax bad debt deductions was approximately $3.1 million for both years. If these tax bad debt reserves were charged for losses other than bad debt losses,

the Company would be required to recognize taxable income in the amount of the charge. It is not expected that such tax-restricted retained earnings will be used in a manner that would create federal income tax liabilities.

The Company had $43.0 million of federal net operating loss carryforwards expiring 2022 through 2035, $14.0 million of Illinois post-apportioned net operating loss carryforwards expiring in 2026 and 2027, and $43.0 million of Missouri pre-apportioned net operating loss carryforwards expiring 2022 through 2035, at December 31, 2021. The utilization of the federal and Missouri net operating losses are subject to the limitations of Internal Revenue Code Section 382. The utilization of the Illinois net operating loss is limited to $100,000 per year for years 2021 through 2023 and the carryforward period will toll in years the Company could have utilized more than $100,000 of net operating loss.

The Company has state tax credit carryforwards of $1.3 million with a five year carryforward period, expiring between 2022 and 2026. Any amounts that are expected to expire before being fully utilized have been accounted for through a valuation allowance as discussed below.

We had no unrecognized tax benefits as of December 31, 2021 and 2020, and did not recognize any increase of unrecognized benefits during 2021 relative to any tax positions taken during the year.

Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is our policy to record such accruals in other income or expense; no such accruals existed as of December 31, 2021 and 2020.

Future realization of the tax benefit of an existing deductible temporary difference or carryforward ultimately depends on the existence of sufficient taxable income of the appropriate character within the carryback or carryforward period available under the tax law. All available evidence, both positive and negative, should be considered to determine whether, based on the weight of that evidence, a valuation allowance is needed. At December 31, 2021, the Company concluded, based on all available evidence, a valuation allowance was needed for the Company’s deferred tax asset related to capital loss carry forwards. An addition was made to the $0.1 million valuation allowance from December 31, 2020 in the amount of $0.05 million, resulting in a valuation allowance of $0.1 million at December 31, 2021 for the estimated capital losses that will not be able to be utilized in the future. For the Company's remaining deferred tax assets, based on our taxpaying history and estimates of taxable income over the years in which the items giving rise to the deferred tax assets are deductible, management believes it is more likely than not that we will realize the benefits of these deductible differences.

The Company is subject to U.S. federal income tax as well as income tax of various states. Years that remain open for potential review by the Internal Revenue Service are 2018 through 2020 and by state taxing authorities are 2017 through 2020.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

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+ Details

RETIREMENT PLANS

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

RETIREMENT PLANS

Profit Sharing Plan

We sponsor the Midland States Bank 401(k) Profit Sharing Plan, which provides retirement benefits to substantially all of our employees. There were no employer discretionary profit sharing contributions made to the 401(k) plan in 2021, 2020 and 2019. The 401(k) component of the plan allows participants to defer a portion of their compensation ranging from 1% to 100%. Such deferrals accumulate on a tax deferred basis until the participant withdraws the funds. The Company matches 50% of participant contributions up to 6% of their compensation. Total expense recorded for the Company match was $1.2 million, $1.7 million and $1.7 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Deferred Compensation Arrangements

Certain executive officers participate in a nonqualified deferred compensation arrangement. Beginning in May 2020, the plan is fully funded in a trust controlled by the Company with the gains and losses recognized in other noninterest income. The trust asset is reflected in the Company's equity securities with the offsetting deferred compensation liability reflected in other liabilities. The expense associated with the gains and losses, which are due to the employee upon distribution, is recognized in salaries and employee benefits.

The following table summarizes the activity in the asset and liability balances of the executive officer nonqualified deferred compensation arrangement for the years ended December 31, 2021, 2020 and 2019:


(dollars in thousands)	2021		2020		2019
Beginning balance, trust asset	$	3,657	$	—	$	—
Contributions	207		3,264		—
Gain on trust assets	359		499		—
Distributions	(509)		(106)		—
Ending balance, trust asset	$	3,714	$	3,657	$	—

Beginning balance, deferred compensation liability	$	3,657	$	2,978	$	2,383
Deferred compensation	207		350		751
Expense on deferred compensation liability	359		506		8
Distributions	(509)		(177)		(164)
Ending balance, deferred compensation liability	$	3,714	$	3,657	$	2,978

Certain directors also participate in a nonqualified deferred compensation arrangement. The deferred compensation liability is reflected in other liabilities with the associated expense recognized in other noninterest expense.

The following table summarizes the activity in the liability balance of the director nonqualified deferred compensation arrangement for the years ended December 31, 2021, 2020 and 2019:


(dollars in thousands)	2021		2020		2019
Beginning balance, deferred compensation liability	$	4,560	$	5,007	$	4,135
Deferred compensation	606		586		679
Expense on deferred compensation liability	251		270		236
Distributions	(45)		(1,303)		(43)
Ending balance, deferred compensation liability	$	5,372	$	4,560	$	5,007

Defined Benefit Pension Plan

The Bank participated in the Pentegra Defined Benefit Plan for Financial Institutions, a non-contributory defined benefit pension plan for certain former employees of Heartland Bank who met prescribed eligibility requirements. The multiple-employer plan operates as a single plan under Internal Revenue Code Section 413(c) and, as a result, all of the amounts contributed by the participating institutions are maintained in the aggregate. The plan was funded based on an annual valuation performed by the plan administrator. For Heartland Bank participants, benefits under the plan were frozen July 1, 2004. The funded status of the plan (allocated market value of assets divided by funding target associated with Heartland Bank participants) was 141.37% as of July 1, 2021, the latest actuarial valuation date. The minimum required contribution for 2021 and 2020 was $0.1 million and $0.2 million, respectively.

Effective October 1, 2021, the Bank withdrew from the multiple-employer plan by transferring assets and liabilities to a qualified successor plan under actuarial assumptions and methodology determined appropriate by Pentegra. Assets of $16.6 million were transferred to the successor plan on November 30, 2021. Transferred liability excludes the previously allocated orphan liability. For minimum funding purposes, this single-employer plan operates under Internal Revenue Code Sections 430 and 436. The successor plan would remain above 100% funded if valued as of July 1, 2021, and the minimum required contribution for 2022 is expected to be zero.

Previously, costs for administration, shortfalls in funds to maintain the frozen level of benefit coverage and differences of actuarial assumptions related to the frozen benefits were expensed as incurred. As a result, there is no recognized accrued or prepaid pension cost as of December 31, 2021. Initial application of ASC 715 to the successor plan will result in a transition asset or obligation equal to the plan’s funded status. For future periods, the net periodic benefit cost will vary from contributions made during the year.

- Definition

The entire disclosure for retirement benefits.

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+ Details

SHARE BASED COMPENSATION

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

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

Previously, the Company granted equity awards under the Midland States Bancorp, Inc. Second Amended and Restated 2010 Long-Term Incentive Plan (“2010 Incentive Plan”). Following approval of our 2019 Incentive Plan, no additional awards may be granted from our 2010 Incentive Plan; however, any previously granted award will remain subject to the terms of the 2010 Incentive Plan for so long as they remain outstanding.

Total compensation cost that has been charged against income under the plans was $1.9 million, $2.2 million and $2.0 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Restricted Stock

The Company granted 128,049 and 94,998 shares of restricted stock awards in 2021 and 2020, respectively. These awards have a vesting period of four years. Compensation expense is recognized over the vesting period of the award based on the fair value of the stock at the date of grant.

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


	Number outstanding	Weighted average grant due fair value
Nonvested, beginning of year	233,010	$	22.64
Granted	128,049	25.67
Vested	(77,319)	24.60
Forfeited	(21,922)	21.66
Nonvested, end of year	261,818	$	23.62

As of December 31, 2021, there was $5.6 million of total unrecognized compensation cost related to the nonvested shares granted under the plans. The cost is expected to be recognized over a weighted average period of 3.0 years.

The weighted average grant date fair value for restricted stock awards was $25.67, $14.85 and $27.67 during the years ended December 31, 2021, 2020 and 2019, respectively.

Stock Options

The Company did not grant stock options in any of the years ended December 31, 2021, 2020 and 2019. All stock options outstanding are related to grants from prior years.

The summary of our stock option activity during the years ended December 31, 2021 and 2020 is as follows:


	2021				2020
	Shares	Weighted average exercise price		Weighted average remaining contractual life	Shares	Weighted average exercise price		Weighted average remaining contractual life
Option outstanding, beginning of year	467,489	$	21.40		623,122	$	20.83
Options granted	—	—			—	—
Options exercised	(116,147)	19.16			(39,500)	17.90
Options forfeited	—	—			(3,268)	28.89
Options expired	(26,548)	27.07			(112,865)	19.26
Options outstanding, end of year	324,794	21.74		3.1 years	467,489	21.40		4.1 years
Options exercisable	324,794	21.74		3.1 years	463,590	21.31		4.1 years
Options vested and expected to vest	324,794	21.74		3.1 years	467,060	21.39		4.1 years

The aggregate intrinsic value of options outstanding and exercisable as of December 31, 2021 was $1.3 million.

The total intrinsic value and cash received from options exercised under share-based payment arrangements was $0.8 million and $2.2 million, respectively, for the year ended December 31, 2021, $0.2 million and $0.7 million, respectively, for the year ended December 31, 2020, and $3.6 million and $5.9 million, respectively, for the year ended December 31, 2019.

The following table summarizes information about the Company’s nonvested stock option activity for 2021:


	Shares	Weighted average grant date fair value
Nonvested, beginning of year	3,899	$	4.33
Granted	—	—
Vested	(3,899)	4.33
Forfeited	—	—
Nonvested, end of year	—	—

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

EARNINGS PER SHARE

Earnings per share are calculated utilizing the two-class method. Basic earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards. The diluted earnings per share computation for the years ended December 31, 2021, 2020 and 2019 excluded antidilutive stock options of 65,033, 364,272 and 91,097, respectively, because the exercise prices of these stock options exceeded the average market prices of the Company’s common shares for those respective years. Presented below are the calculations for basic and diluted earnings per common share for the years ended December 31, 2021, 2020 and 2019:


(dollars in thousands, except share and per share data)	2021		2020		2019
Net income	$	81,317	$	22,537	$	55,784
Preferred dividends declared	—		—		(191)
Preferred stock, premium amortization	—		—		145
Net income available to common shareholders	81,317		22,537		55,738
Common shareholder dividends	(24,912)		(24,699)		(23,389)
Unvested restricted stock award dividends	(260)		(259)		(210)
Undistributed earnings to unvested restricted stock awards	(564)		—		(267)
Undistributed earnings to common shareholders	$	55,581	$	(2,421)	$	31,872
Basic
Distributed earnings to common shareholders	$	24,912	$	24,699	$	23,389
Undistributed earnings to common shareholders	55,581		(2,421)		31,872
Total common shareholders earnings, basic	$	80,493	$	22,278	$	55,261
Diluted
Distributed earnings to common shareholders	$	24,912	$	24,699	$	23,389
Undistributed earnings to common shareholders	55,581		(2,421)		31,872
Total common shareholders earnings	80,493		22,278		55,261
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	2		—		2
Total common shareholders earnings, diluted	$	80,495	$	22,278	$	55,263
Weighted average common shares outstanding, basic	22,481,389		23,336,881		24,288,793
Options	65,964		9,245		204,638
Weighted average common shares outstanding, diluted	22,547,353		23,346,126		24,493,431
Basic earnings per common share	$	3.58	$	0.95	$	2.28
Diluted earnings per common share	3.57		0.95		2.26

CAPITAL REQUIREMENTS

12 Months Ended

Dec. 31, 2021

Capital Requirements [Abstract]

CAPITAL REQUIREMENTS

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

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

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

Beginning on January 1, 2016, a capital conservation buffer became effective for banking organizations. The capital conservation buffer, which consists of Common Equity Tier 1 capital, is not a minimum capital requirement; however, the capital conservation buffer is designed to establish a capital range above minimum requirements to insulate banks from periods of stress and impose constraints on dividends, share repurchases and discretionary bonus payments when capital levels fall below prescribed levels. In order to not be subject to required restrictions on dividends, share repurchases and discretionary bonus payments, banking organizations must maintain minimum ratios of (i) Common Equity Tier 1 capital to risk-weighted assets of at least 4.5% plus the 2.5% capital conservation buffer, (ii) Tier 1 capital to risk-weighted assets of at least 6.0% plus the 2.5% capital conservation buffer, (iii) Total capital to risk-weighted assets of at least 8.0% plus the 2.5% capital conservation buffer, and (iv) Tier 1 capital to adjusted average consolidated assets of at least 4.0%.

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

At December 31, 2021, the Company and the Bank exceeded the regulatory minimums to which they were subject and exceeded the regulatory definition of well-capitalized.

At December 31, 2021 and 2020, the Company’s and the Bank’s actual and required capital ratios were as follows:


	Actual				Fully Phased-In Regulatory Guidelines Minimum				Required to be Well Capitalized Under Prompt Corrective Action Requirements
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2021
Total risk-based capital ratio
Midland States Bancorp, Inc.	$	732,177	12.19	%	$	630,482	10.50	%	N/A		N/A
Midland States Bank	672,500		11.21		629,911		10.50		$	599,915	10.00%
Tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	550,195		9.16		510,390		8.50		N/A		N/A
Midland States Bank	629,389		10.49		509,928		8.50		479,932		8.00
Common equity tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	485,244		8.08		420,321		7.00		N/A		N/A
Midland States Bank	629,389		10.49		419,940		7.00		389,945		6.50
Tier 1 leverage ratio
Midland States Bancorp, Inc.	550,195		7.75		283,941		4.00		N/A		N/A
Midland States Bank	629,389		8.89		283,324		4.00		354,156		5.00

December 31, 2020
Total risk-based capital ratio
Midland States Bancorp, Inc.	$	710,417	13.24	%	$	563,610	10.50	%	N/A		N/A
Midland States Bank	631,585		11.77		563,420		10.50		$	536,591	10.00%
Tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	494,043		9.20		456,256		8.50		N/A		N/A
Midland States Bank	578,681		10.78		456,102		8.50		429,273		8.00
Common equity tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	429,092		7.99		375,740		7.00		N/A		N/A
Midland States Bank	578,681		10.78		375,614		7.00		348,784		6.50
Tier 1 leverage ratio
Midland States Bancorp, Inc.	494,043		7.50		263,651		4.00		N/A		N/A
Midland States Bank	578,681		8.78		263,537		4.00		329,421		5.00

- Definition

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

+ References + Details

FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 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.

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

Investment securities. The fair value of investment securities available for sale are determined by quoted market prices, if available (Level 1). For investment securities available for sale where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For investment securities available for sale where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other

market indicators (Level 3). Securities classified as Level 3 are not actively traded, and as a result, fair value is determined utilizing third-party valuation services through consensus pricing. There were no transfers between Levels 1, 2 or 3 during the years ended December 31, 2021 or 2020 for assets measured at fair value on a recurring basis. The fair value of equity securities is determined using quoted prices or market prices for similar securities (Level 2).

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

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

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

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

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

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

Assets and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and non-recurring basis at December 31, 2021 and 2020, are summarized below:


	2021
(dollars in thousands)	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. Treasury securities	$	64,917	$	64,917	$	—	$	—
U.S. government sponsored entities and U.S. agency securities	33,817		—		33,817		—
Mortgage-backed securities - agency	440,270		—		440,270		—
Mortgage-backed securities - non-agency	28,706		—		28,706		—
State and municipal securities	143,099		—		143,099		—
Corporate securities	195,794		—		194,859		935
Equity securities	9,529		9,529		—		—
Loans held for sale	32,045		—		32,045		—
Interest rate lock commitments	410		—		410		—
Interest rate swap contracts	5,473		—		5,473		—
Total	$	954,060	$	74,446	$	878,679	$	935
Liabilities
Forward commitments to sell mortgage-backed securities	$	19	$	—	$	19	$	—
Interest rate swap contracts	378		—		378		—
Total	$	397	$	—	$	397	$	—

Assets measured at fair value on a non-recurring basis:
Loan servicing rights	$	28,865	$	—	$	—	$	28,865

Nonperforming loans	36,542		24,358		6,129		6,055
Other real estate owned	12,059		—		12,059		—
Assets held for sale	2,284		—		2,284		—


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

Assets measured at fair value on a non-recurring basis:
Loan servicing rights	$	28,865	$	—	$	—	$	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		—

The following table provides a reconciliation of activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2021 and 2020:


	Corporate Securities
(dollars in thousands)	2021		2020
Balance, beginning of period	$	959	$	955
Total realized in earnings (1)	14		8
Total unrealized in other comprehensive income (2)	(24)		4
Net settlements (principal and interest)	(14)		(8)
Balance, end of period	$	935	$	959

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

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

The following table provides quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured at fair value on a recurring basis at December 31, 2021 and 2020:


(dollars in thousands)	Fair value		Valuation technique	Unobservable input / assumptions	Range (weighted average)(1)
December 31, 2021
Corporate securities	$	935	Consensus pricing	Net market price	0.0	%	—	7.0%	(4.5)%

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 in the fair value measurement. Generally, net market price increases when market interest rates decline and declines when market interest rates increase.

The following table presents (gains) losses recognized on assets measured on a non-recurring basis for the years ended December 31, 2021, 2020 and 2019:


(dollars in thousands)	2021		2020		2019
Loan servicing rights	$	7,532	$	12,337	$	2,139
Mortgage servicing rights held for sale	222		1,692		(490)
Nonperforming loans	14,468		24,611		10,259
Other real estate owned	454		1,390		16
Assets held for sale	—		10,404		3,577
Total loss on assets measured on a nonrecurring basis	$	22,676	$	50,434	$	15,501

The following table presents quantitative information about significant unobservable inputs used in the fair value measurements of Level 3 assets measured on a non-recurring basis at December 31, 2021 and 2020:


(dollars in thousands)	Fair Value		Valuation technique	Unobservable input / assumptions	Range (weighted average)
December 31, 2021
Loan servicing rights:
Commercial MSR	$	28,368	Discounted cash flow	Prepayment speed	8.00%	-	18.00%	(8.24)%
				Discount rate	10.00%	-	27.00%	(11.87)%

SBA servicing rights	$	898	Discounted cash flow	Prepayment speed	12.27%	-	14.14%	(13.88)%
				Discount rate	10.00%	-	12.00%	(11.00)%

Residential MSR	$	705	Discounted cash flow	Prepayment speed	11.94%	-	27.48%	(14.94)%
				Discount rate	9.00%	-	11.50%	(10.25)%

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)%

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

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

The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected at December 31, 2021 and 2020:


	2021						2020
(dollars in thousands)	Aggregate fair value		Difference		Contractual principal		Aggregate fair value		Difference		Contractual principal
Commercial loans held for sale	$	19,230	$	—	$	19,230	$	126,123	$	67	$	126,056
Residential loans held for sale	12,815		584		12,231		11,967		743		11,224
Total loans held for sale	$	32,045	$	584	$	31,461	$	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 years ended December 31, 2021, 2020 and 2019:


(dollars in thousands)	2021		2020		2019
Commercial loans held for sale	$	(67)	$	(139)	$	(389)
Residential loans held for sale	(148)		318		7
Total loans held for sale	$	(215)	$	179	$	(382)

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


	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	$	673,297	$	673,297	$	673,297	$	—	$	—
Federal funds sold	7,074		7,074		7,074		—		—

Loans, net	5,173,739		5,221,886		—		—		5,221,886
Accrued interest receivable	19,470		19,470		—		19,470		—

Liabilities
Deposits	$	6,110,648	$	6,109,077	$	—	$	6,109,077	$	—
Short-term borrowings	76,803		76,803		—		76,803		—
FHLB and other borrowings	310,171		317,464		—		317,464		—
Subordinated debt	139,091		148,386		—		148,386		—
Trust preferred debentures	49,374		57,827		—		57,827		—
Accrued interest payable	2,848		2,848		—		2,848		—


	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		—
Accrued interest payable	4,441		4,441		—		4,441		—

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

COMMITMENTS, CONTINGENCIES AND CREDIT RISK

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS, CONTINGENCIES AND CREDIT RISK

COMMITMENTS, CONTINGENCIES AND CREDIT RISKThe spread of the COVID virus had an impact on our operations, 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 pandemic caused changes in the behavior of customers, businesses, and their employees, including illness, quarantines, social distancing practices, cancellation of events and travel, business and school shutdowns, reduction in commercial activity and financial transactions, supply chain interruptions, increased unemployment, and overall economic and financial market instability. Future effects, including additional actions taken by federal, state, and local governments to contain COVID or treat its impact, are unknown. However, if these actions are sustained, it may adversely impact several industries within our geographic footprint and impair the ability of our customers to fulfill their contractual obligations to the Company. This could cause the Company to experience a material adverse effect on our business operations, asset valuations, financial condition, and

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

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

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

Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank used the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The commitments are principally tied to variable rates. Loan commitments at December 31, 2021 and 2020 were as follows:


(dollars in thousands)	2021		2020
Commitments to extend credit	$	994,709	$	894,212
Financial guarantees – standby letters of credit	14,325		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 years ended December 31, 2021, 2020 and 2019. The liability for unresolved repurchase demands totaled $0.2 million at December 31, 2021 and 2020.

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 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 as of and for the years ended December 31, 2021, 2020 and 2019 were as follows:


(dollars in thousands)	Banking		Wealth Management		Other		Total
December 31, 2021
Net interest income (expense)	$	218,309	$	—	$	(10,634)	$	207,675
Provision for credit losses on loans	3,393		—		—		3,393
Noninterest income	42,249		26,876		774		69,899
Noninterest expense	158,803		17,372		(1,106)		175,069
Income (loss) before income taxes (benefit)	98,362		9,504		(8,754)		99,112
Income taxes (benefit)	17,218		2,679		(2,102)		17,795
Net income (loss)	$	81,144	$	6,825	$	(6,652)	$	81,317
Total assets	$	7,460,114	$	28,883	$	(45,192)	$	7,443,805

December 31, 2020
Net interest income (expense)	$	211,120	$	—	$	(11,984)	$	199,136
Provision for credit losses on loans	44,361		—		—		44,361
Noninterest income	38,706		22,802		(259)		61,249
Noninterest expense	170,025		14,938		(953)		184,010
Income (loss) before income taxes (benefit)	35,440		7,864		(11,290)		32,014
Income taxes (benefit)	10,020		2,194		(2,737)		9,477
Net income (loss)	$	25,420	$	5,670	$	(8,553)	$	22,537
Total assets	$	6,983,254	$	29,069	$	(143,783)	$	6,868,540

December 31, 2019
Net interest income (expense)	$	201,534	$	—	$	(11,719)	$	189,815
Provision for credit losses on loans	16,985		—		—		16,985
Noninterest income	53,683		21,832		(233)		75,282
Noninterest expense	160,364		14,850		427		175,641
Income (loss) before income taxes (benefit)	77,868		6,982		(12,379)		72,471
Income taxes (benefit)	18,195		1,850		(3,358)		16,687
Net income (loss)	$	59,673	$	5,132	$	(9,021)	$	55,784
Total assets	$	6,085,441	$	27,521	$	(25,945)	$	6,087,017

- 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=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/topic&trid=2134510

+ Details

REVENUE FROM CONTRACTS WITH CUSTOMERS

12 Months Ended

Dec. 31, 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 years ended December 31, 2021, 2020 and 2019.


(dollars in thousands)	2021		2020		2019
Noninterest income - in-scope of Topic 606
Wealth management revenue:
Trust management/administration fees	$	20,954	$	16,953	$	16,114
Investment advisory fees	1,282		2,009		2,171
Investment brokerage fees	2,050		1,465		1,165
Other	2,525		2,375		2,382
Service charges on deposit accounts:
Nonsufficient fund fees	5,339		5,589		7,721
Other	3,009		3,014		3,306
Interchange revenues	14,500		12,266		11,992
Other income:
Merchant services revenue	1,511		1,381		1,506
Other	3,850		3,161		3,475
Noninterest income - out-of-scope of Topic 606	14,879		13,036		25,450
Total noninterest income	$	69,899	$	61,249	$	75,282

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

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

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

Interchange Revenue. Interchange revenue includes debit / credit card income and ATM user fees. Card income is primarily comprised of interchange fees earned for standing ready to authorize and providing settlement on card transactions processed through the MasterCard interchange network. The levels and structure of interchange rates are set by MasterCard and can vary based on cardholder purchase volumes. Interchange fees from cardholder transactions represent a percentage of the

underlying transaction value and are recognized daily, concurrently with completion of the Company’s performance obligation, the transaction processing services provided to the cardholder. Payment is typically received immediately or in the following month. ATM fees are primarily generated when a Company cardholder withdraws funds from a non-Company ATM or a non-Company cardholder withdraws funds from a Company ATM. The Company satisfies its performance obligation for each transaction at the point in time when the ATM withdrawal is processed.

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

- 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=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

PARENT COMPANY ONLY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

PARENT COMPANY ONLY FINANCIAL INFORMATION

The following tables present condensed financial information for Midland States Bancorp, Inc. at December 31, 2021 and 2020, and for the years ended December 31, 2021, 2020 and 2019:


Condensed Balance Sheets
(dollars in thousands)
	December 31,
	2021		2020
Assets:
Cash	$	37,876	$	58,904
Investment in common stock of subsidiaries	809,143		772,758

Other assets	8,094		11,317
Total assets	$	855,113	$	842,979
Liabilities:
Subordinated debt	$	139,091	$	169,795
Trust preferred debentures	49,374		48,814
Other borrowings	171		171


Other liabilities	2,640		2,808
Total liabilities	191,276		221,588
Shareholders’ equity	663,837		621,391
Total liabilities and shareholders’ equity	$	855,113	$	842,979


Condensed Statements of Income
(dollars in thousands)

	Years ended December 31,
	2021		2020		2019
Dividends from subsidiaries	$	45,350	$	89,890	$	43,900
Other income	932		—		—
Interest expense	10,668		12,054		11,798
Other expense	984		1,309		2,753
Income before income tax benefit and equity in undistributed income (loss) of subsidiaries	34,630		76,527		29,349
Income tax benefit	2,105		2,749		3,371
Income before equity in undistributed income (loss) of subsidiaries	36,735		79,276		32,720
Equity in undistributed income (loss) of subsidiaries	44,582		(56,739)		23,064
Net income	$	81,317	$	22,537	$	55,784


Condensed Statements of Cash Flows
(dollars in thousands)

	Years ended December 31,
	2021		2020		2019
Cash flows from operating activities:
Net income	$	81,317	$	22,537	$	55,784
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed (income) loss of subsidiaries	(44,582)		56,739		(23,064)
Share-based compensation expense	1,938		2,175		2,364
Change in other assets	3,223		(6,382)		(2,604)
Change in other liabilities	763		471		1,528
Net cash provided by operating activities	42,659		75,540		34,008
Cash flows from investing activities:
Net cash paid in acquisition	—		—		(1,021)
Net cash received in dissolution of subsidiary	2,003		—		—
Net cash provided by (used in) investing activities	2,003		—		(1,021)
Cash flows from financing activities:
Proceeds from issuance of subordinated debt, net of issuance costs	—		—		98,265
Payments made on subordinated debt	(31,075)		(7,443)		(19,543)

Subordinated debt prepayment fees	—		193		1,778
Payments made on other borrowings	—		—		(56,475)
Common stock repurchased	(11,692)		(39,615)		(4,019)
Redemption of Series G preferred stock	—		(10)		—
Redemption of Series H preferred stock	—		—		(2,636)
Cash dividends paid on common stock	(25,172)		(24,958)		(23,599)
Cash dividends paid on preferred stock	—		—		(191)
Proceeds from issuance of common stock under employee benefit plans	2,249		2,524		5,794
Net cash used in by financing activities	(65,690)		(69,309)		(626)
Net (decrease) increase in cash	(21,028)		6,231		32,361
Cash:
Beginning of period	58,904		52,673		20,312
End of period	$	37,876	$	58,904	$	52,673

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTSOn January 25, 2022, the Company announced the signing of a branch purchase and assumption agreement with FNBC whereby Midland has agreed to acquire the deposits and certain loans and other assets associated with FNBC’s branches in Mokena and Yorkville, Illinois. Under the terms of the purchase and assumption agreement, Midland expects to acquire approximately $86 million of deposits and approximately $26 million of loans. Midland also expects to acquire the Mokena branch location. The transaction is expected to close during the second quarter of 2022, subject to regulatory approval and other customary closing conditions.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Principles of Consolidation

Subsequent Events

Management has evaluated subsequent events for recognition and disclosure through February 25, 2022, which is the date the financial statements were available to be issued.

Business Combinations

Cash and Cash Equivalents and Cash Flows

The following table summarizes supplemental cash flow information:


	Years Ended December 31,
(dollars in thousands)	2021		2020		2019
Supplemental disclosures of cash flow information:
Cash payments for:
Interest paid on deposits and borrowed funds	$	31,735	$	47,712	$	58,158
Income tax paid, net of refunds	7,759		2,977		479
Supplemental disclosures of noncash investing and financing activities:

Transfer of loans to loans held for sale	123,117		542,060		419,215
Transfer of loans to other real estate owned	805		16,736		3,819
Transfer of premises and equipment, net to assets held for sale	23		11,344		4,350
Transfer of loan servicing rights held for sale, at lower of cost or market to mortgage servicing rights	705		—		—

Investment Securities

Equity Securities

Nonmarketable Equity Securities

periodically evaluated for impairment based on ultimate recovery of par value. Both cash dividends and stock dividends are reported as income.

Loans

Allowance for Credit Losses on Loans

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


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

Loans Held for Sale

Mortgage Repurchase Reserve

Premises and Equipment

Operating Lease Right of Use Assets and Liabilities

Other Real Estate Owned

Goodwill and Intangible Assets

Loan Servicing Rights

Cash Surrender Value of Life Insurance Policies

Derivative Financial Instruments

Allowance for Credit Losses on Unfunded Commitments

Income Taxes

Share-Based Compensation Plans

Comprehensive Income

Earnings per Share

Accounting Guidance Adopted in 2021 and Issued But Not Yet Adopted

Accounting Guidance Adopted in 2021

Accounting Guidance Issued But Not Yet Adopted

The Company believes the adoption of this guidance on activities subsequent to December 31, 2021 through December 31, 2022 will not have a material impact on the consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of supplemental cash flows

The following table summarizes supplemental cash flow information:


	Years Ended December 31,
(dollars in thousands)	2021		2020		2019
Supplemental disclosures of cash flow information:
Cash payments for:
Interest paid on deposits and borrowed funds	$	31,735	$	47,712	$	58,158
Income tax paid, net of refunds	7,759		2,977		479
Supplemental disclosures of noncash investing and financing activities:

Transfer of loans to loans held for sale	123,117		542,060		419,215
Transfer of loans to other real estate owned	805		16,736		3,819
Transfer of premises and equipment, net to assets held for sale	23		11,344		4,350
Transfer of loan servicing rights held for sale, at lower of cost or market to mortgage servicing rights	705		—		—

Summary of loans

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


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

The following table presents total loans outstanding by portfolio class, at December 31, 2021 and 2020:


(dollars in thousands)	2021		2020
Commercial:
Commercial	$	770,670	$	937,382
Commercial other	679,518		748,193
Commercial real estate:
Commercial real estate non-owner occupied	1,105,333		871,451
Commercial real estate owner occupied	469,658		423,257
Multi-family	171,875		151,534
Farmland	69,962		79,731
Construction and land development	193,749		172,737
Total commercial loans	3,460,765		3,384,285
Residential real estate:
Residential first lien	274,412		358,329
Other residential	63,739		84,551
Consumer:
Consumer	106,008		80,642
Consumer other	896,597		785,460
Lease financing	423,280		410,064
Total loans, gross	$	5,224,801	$	5,103,331

ACQUISITIONS AND DISPOSITIONS (Tables)

12 Months Ended

Dec. 31, 2021

Business Combinations [Abstract]

Schedule of allocation of consideration

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


(dollars in thousands)	ATG
Assets acquired:











Intangible assets	$	1,847




Other assets	1,269
Total assets acquired	3,116
Liabilities assumed:







Other liabilities	401

Net assets acquired and consideration paid	$	2,715



Intangible assets:

Customer relationship intangible	$	1,847



Estimated useful life	6 years

INVESTMENT SECURITIES (Tables)

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of investment securities classified as available for sale

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


	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	$	65,347	$	—	$	430	$	—	$	64,917
U.S. government sponsored entities and U.S. agency securities	34,569		79		831		—		33,817
Mortgage-backed securities - agency	444,484		2,687		6,901		—		440,270
Mortgage-backed securities - non-agency	29,037		50		381		—		28,706
State and municipal securities	137,904		5,561		366		—		143,099
Corporate securities	193,354		3,128		467		221		195,794
Total investment securities available for sale	$	904,695	$	11,505	$	9,376	$	221	$	906,603


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

Schedule of debt securities


(dollars in thousands)	Amortized cost		Fair value
Investment securities available for sale
Within one year	$	9,877	$	9,976
After one year through five years	137,694		139,456
After five years through ten years	244,626		248,197
After ten years	38,977		39,998
Mortgage-backed securities	473,521		468,976
Total investment securities available for sale	$	904,695	$	906,603

Proceeds from the sale of investment securities available for sale and the resulting gross realized gains and losses for the years ended December 31, 2021, 2020 and 2019 are summarized below:


(dollars in thousands)	2021		2020		2019
Investment securities available for sale
Proceeds from sales	$	14,777	$	28,256	$	33,464
Gross realized gains on sales	537		1,721		786
Gross realized losses on sales	—		—		(190)

Schedule of major security type

The table below presents a rollforward by major security type for the year ended December 31, 2021 of the allowance for credit losses on investment securities available for sale held at period end:


(dollars in thousands)	State and municipal securities		Corporate securities		Total
Changes in ACL on investment securities available for sale:
For the year ended December 31, 2021
Balance, beginning of period	$	29	$	337	$	366
Current-period recapture of expected credit losses	(29)		(116)		(145)
Balance, end of period	$	—	$	221	$	221
For the year ended December 31, 2020
Balance, beginning of period	$	—	$	—	$	—
Current-period provision for expected credit losses	29		337		366
Balance, end of period	$	29	$	337	$	366

Schedule of unrealized losses and fair values for investment securities


	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. Treasury securities	$	64,917	$	430	$	—	$	—	$	64,917	$	430
U.S. government sponsored entities and U.S. agency securities	17,487		263		9,432		568		26,919		831
Mortgage-backed securities - agency	317,372		6,633		9,051		268		326,423		6,901
Mortgage-backed securities - non-agency	24,095		381		—		—		24,095		381
State and municipal securities	27,324		270		2,538		96		29,862		366
Corporate securities	—		—		—		—		—		—
Total investment securities available for sale	$	451,195	$	7,977	$	21,021	$	932	$	472,216	$	8,909


	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


Corporate securities	20,010		522		—		—		20,010		522
Total investment securities available for sale	$	56,085	$	666	$	—	$	—	$	56,085	$	666

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


(dollars in thousands)	2021		2020		2019
Equity securities
Proceeds from sales	$	—	$	—	$	105
Gross realized gains on sales	—		—		78
Gross realized losses on sales	—		—		—
Net unrealized gains (losses)	361		577		93

LOANS (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Summary of loans

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


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

The following table presents total loans outstanding by portfolio class, at December 31, 2021 and 2020:


(dollars in thousands)	2021		2020
Commercial:
Commercial	$	770,670	$	937,382
Commercial other	679,518		748,193
Commercial real estate:
Commercial real estate non-owner occupied	1,105,333		871,451
Commercial real estate owner occupied	469,658		423,257
Multi-family	171,875		151,534
Farmland	69,962		79,731
Construction and land development	193,749		172,737
Total commercial loans	3,460,765		3,384,285
Residential real estate:
Residential first lien	274,412		358,329
Other residential	63,739		84,551
Consumer:
Consumer	106,008		80,642
Consumer other	896,597		785,460
Lease financing	423,280		410,064
Total loans, gross	$	5,224,801	$	5,103,331

Schedule of Changes in Related Parties Receivables

The new loans, other additions, repayments and other reductions for the years ended December 31, 2021 and 2020, are summarized as follows:


(dollars in thousands)	2021		2020
Beginning balance	$	19,693	$	22,989
New loans and other additions	4,745		2,563
Repayments and other reductions	(10,569)		(5,859)
Ending balance	$	13,869	$	19,693

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

The following table presents, by loan portfolio, a summary of changes in the allowance for credit losses on loans for the years ended December 31, 2021, 2020 and 2019:


	Commercial Loan Portfolio						Other Loan Portfolio
			Commercial		Construction		Residential
			Real		and Land		Real				Lease
(dollars in thousands)	Commercial		Estate		Development		Estate		Consumer		Financing		Total
Changes in allowance for credit losses on loans in 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	648		1,031		(234)		(1,085)		864		2,726		3,950
Charge-offs	(6,465)		(3,524)		(448)		(398)		(1,158)		(3,427)		(15,420)
Recoveries	341		21		221		249		514		743		2,089
Balance, end of period	$	14,375	$	22,993	$	972	$	2,695	$	2,558	$	7,469	$	51,062

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

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

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

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


Risk state	Commercial loans risk rating	Consumer loans and equipment finance loans and leases days past due
1	0-5	0-14
2	6	15-29
3	7	30-59
4	8	60-89
Default	9+ and nonaccrual	90+ and nonaccrual

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

The following table presents the amortized cost basis of individually evaluated loans on nonaccrual status as of December 31, 2021 and 2020:


	2021						2020
	Nonaccrual		Nonaccrual				Nonaccrual		Nonaccrual
	with		with no		Total		with		with no		Total
(dollars in thousands)	Allowance		Allowance		Nonaccrual		Allowance		Allowance		Nonaccrual
Commercial:
Commercial	$	4,681	$	2,275	$	6,956	$	3,498	$	—	$	3,498
Commercial Other	4,467		—		4,467		2,634		—		2,634
Commercial real estate:
Commercial real estate non-owner occupied	1,914		9,912		11,826		5,509		3,823		9,332
Commercial real estate owner occupied	2,164		1,340		3,504		3,598		3,227		6,825
Multi-family	201		1,967		2,168		7,921		2,325		10,246
Farmland	155		—		155		—		—		—
Construction and land development	83		—		83		2,131		693		2,824
Total commercial loans	13,665		15,494		29,159		25,291		10,068		35,359
Residential real estate:
Residential first lien	3,116		832		3,948		8,534		1,071		9,605
Other residential	836		—		836		2,437		—		2,437
Consumer:
Consumer	110		—		110		262		—		262

Lease financing	1,510		—		1,510		1,965		—		1,965
Total loans	$	19,237	$	16,326	$	35,563	$	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 December 31, 2021 and 2020:


	Type of Collateral
(dollars in thousands)	Real Estate		Blanket Lien		Equipment		Total
December 31, 2021
Commercial:
Commercial	$	—	$	5,402	$	—	$	5,402
Commercial other	—		—		502		502
Commercial real estate:
Commercial real estate non-owner occupied	11,604		—		—		11,604
Commercial real estate owner occupied	1,336		—		—		1,336
Multi-Family	1,969		—		—		1,969









Total Collateral Dependent Loans	$	14,909	$	5,402	$	502	$	20,813

December 31, 2020



Commercial real estate:
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 December 31, 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 loans		Nonaccrual loans		Current loans		Total loans
Commercial:
Commercial	$	283	$	1,082	$	—	$	1,365	$	6,956	$	762,349	$	770,670
Commercial other	2,402		2,110		5		4,517		4,467		670,534		679,518
Commercial real estate:
Commercial real estate non-owner occupied	585		243		—		828		11,826		1,092,679		1,105,333
Commercial real estate owner occupied	232		730		—		962		3,504		465,192		469,658
Multi-family	—		—		—		—		2,168		169,707		171,875
Farmland	—		26		—		26		155		69,781		69,962
Construction and land development	195		195		—		390		83		193,276		193,749
Total commercial loans	3,697		4,386		5		8,088		29,159		3,423,518		3,460,765
Residential real estate:
Residential first lien	113		285		—		398		3,948		270,066		274,412
Other residential	456		151		—		607		836		62,296		63,739
Consumer:
Consumer	127		20		—		147		110		105,751		106,008
Consumer other	4,423		2,358		1		6,782		—		889,815		896,597
Lease financing	1,253		245		—		1,498		1,510		420,272		423,280
Total loans	$	10,069	$	7,445	$	6	$	17,520	$	35,563	$	5,171,718	$	5,224,801

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


	2021						2020
(dollars in thousands)	Accruing(1)		Non-accrual(2)		Total		Accruing(1)		Non-accrual(2)		Total
Commercial	$	833	$	1,422	$	2,255	$	967	$	558	$	1,525
Commercial real estate	1,522		3,302		4,824		866		4,314		5,180
Construction and land development	37		—		37		39		909		948
Residential real estate	3,128		784		3,912		988		3,705		4,693
Consumer	98		—		98		41		—		41
Lease financing	1,394		241		1,635		—		38		38
Total loans	$	7,012	$	5,749	$	12,761	$	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.


	Commercial Loan Portfolio						Other Loan Portfolio
(dollars in thousands)	Commercial		Commercial real estate		Construction and land development		Residential real estate		Consumer		Lease financing		Total
For the year ended December 31, 2021:
Troubled debt restructurings:
Number of loans	16		3		1		10		6		9		45
Pre-modification outstanding balance	$	2,294	$	1,639	$	49	$	551	$	134	$	1,635	$	6,302
Post-modification outstanding balance	2,178		1,539		—		513		89		1,635		5,954





For the year ended December 31, 2020:
Troubled debt restructurings:
Number of loans	4		4		3		22		4		—		37
Pre-modification outstanding balance	$	989	$	797	$	1,010	$	2,334	$	34	$	—	$	5,164
Post-modification outstanding balance	967		383		900		2,172		33		—		4,455





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

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

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


			December 31, 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	$	108,490	$	78,071	$	50,458	$	20,045	$	27,405	$	35,856	$	417,920	$	738,245
		Special mention	186		57		198		6,154		2		316		1,517		8,430
		Substandard	380		372		1,934		1,868		64		4,322		8,099		17,039
		Substandard – nonaccrual	52		—		612		177		242		169		5,704		6,956
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	109,108		78,500		53,202		28,244		27,713		40,663		433,240		770,670

	Commercial other	Acceptable credit quality	264,282		167,326		101,083		29,981		303		341		88,198		651,514
		Special mention	—		1,929		10,676		3,966		—		—		3,252		19,823
		Substandard	688		—		62		341		—		—		2,623		3,714
		Substandard – nonaccrual	10		158		3,894		384		—		—		21		4,467
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	264,980		169,413		115,715		34,672		303		341		94,094		679,518

Commercial real estate	Non-owner occupied	Acceptable credit quality	441,483		154,379		134,507		20,524		55,207		182,465		5,258		993,823
		Special mention	26		6,341		14,177		2,296		711		2,272		—		25,823
		Substandard	6,196		817		8,825		20,572		14,857		22,344		250		73,861
		Substandard – nonaccrual	169		992		6,206		—		195		4,264		—		11,826
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	447,874		162,529		163,715		43,392		70,970		211,345		5,508		1,105,333

	Owner occupied	Acceptable credit quality	141,084		69,415		47,187		35,974		30,583		98,442		1,886		424,571
		Special mention	150		24		187		161		13,087		4,540		32		18,181
		Substandard	4,192		1,127		10,810		205		297		6,466		305		23,402
		Substandard – nonaccrual	—		318		129		336		72		2,649		—		3,504
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	145,426		70,884		58,313		36,676		44,039		112,097		2,223		469,658

	Multi-family	Acceptable credit quality	88,329		20,080		1,973		25,450		1,414		18,642		2,241		158,129
		Special mention	—		451		—		—		—		—		—		451
		Substandard	988		—		—		—		—		10,139		—		11,127
		Substandard – nonaccrual	—		—		123		—		—		2,045		—		2,168
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	89,317		20,531		2,096		25,450		1,414		30,826		2,241		171,875

	Farmland	Acceptable credit quality	15,689		14,966		3,931		3,162		7,996		19,305		1,196		66,245
		Special mention	—		66		1,236		145		153		240		—		1,840
		Substandard	371		76		166		211		—		898		—		1,722
		Substandard – nonaccrual	—		—		—		105		—		—		50		155
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	16,060		15,108		5,333		3,623		8,149		20,443		1,246		69,962

Construction and land development		Acceptable credit quality	65,053		65,274		19,269		10,029		2,511		3,841		19,452		185,429
		Special mention	—		—		5,014		—		—		221		—		5,235
		Substandard	—		1,336		—		—		—		—		—		1,336
		Substandard – nonaccrual	—		—		43		—		—		40		—		83
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	1,465		37		—		—		—		164		—		1,666
		Subtotal	66,518		66,647		24,326		10,029		2,511		4,266		19,452		193,749

Total		Acceptable credit quality	1,124,410		569,511		358,408		145,165		125,419		358,892		536,151		3,217,956
		Special mention	362		8,868		31,488		12,722		13,953		7,589		4,801		79,783
		Substandard	12,815		3,728		21,797		23,197		15,218		44,169		11,277		132,201
		Substandard – nonaccrual	231		1,468		11,007		1,002		509		9,167		5,775		29,159
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	1,465		37		—		—		—		164		—		1,666
Total Commercial loans			$	1,139,283	$	583,612	$	422,700	$	182,086	$	155,099	$	419,981	$	558,004	$	3,460,765


			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


			December 31, 2021
			Term Loans Amortized Cost Basis by Origination Year
			2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
Residential real estate	Residential first lien	Performing	$	38,508	$	31,920	$	24,311	$	30,842	$	48,276	$	93,462	$	888	$	268,207
		Nonperforming	—		108		173		780		764		4,380		—		6,205
		Subtotal	38,508		32,028		24,484		31,622		49,040		97,842		888		274,412

	Other residential	Performing	888		679		1,520		1,950		1,211		1,559		54,225		62,032
		Nonperforming	—		—		10		16		128		100		1,453		1,707
		Subtotal	888		679		1,530		1,966		1,339		1,659		55,678		63,739

Consumer	Consumer	Performing	65,915		14,955		7,874		8,728		3,025		2,582		2,721		105,800
		Nonperforming	89		5		3		14		24		71		2		208
		Subtotal	66,004		14,960		7,877		8,742		3,049		2,653		2,723		106,008

	Consumer other	Performing	474,385		323,437		63,463		12,635		3,888		5,447		13,341		896,596
		Nonperforming	—		—		—		—		—		—		1		1
		Subtotal	474,385		323,437		63,463		12,635		3,888		5,447		13,342		896,597

Leases financing		Performing	154,803		124,575		86,402		43,536		9,077		1,983		—		420,376
		Nonperforming	—		757		1,001		1,012		95		39		—		2,904
		Subtotal	154,803		125,332		87,403		44,548		9,172		2,022		—		423,280

Total
		Performing	734,499		495,566		183,570		97,691		65,477		105,033		71,175		1,753,011
		Nonperforming	89		870		1,187		1,822		1,011		4,590		1,456		11,025
Total other loans			$	734,588	$	496,436	$	184,757	$	99,513	$	66,488	$	109,623	$	72,631	$	1,764,036


			December 31, 2020
			Term Loans Amortized Cost Basis by Origination Year
			2020		2019		2018		2017		2016		Prior		Revolving loans		Total
Residential real estate	Residential first lien	Performing	$	32,322	$	27,071	$	49,039	$	99,658	$	81,525	$	58,107	$	405	$	348,127
		Nonperforming	—		196		1,074		933		1,030		6,969		—		10,202
		Subtotal	32,322		27,267		50,113		100,591		82,555		65,076		405		358,329

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

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

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

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

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

PREMISES AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Summary of premises and equipment

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


(dollars in thousands)	2021		2020
Land	$	15,696	$	16,158
Buildings and improvements	67,143		65,932
Furniture and equipment	33,545		33,202
Total	116,384		115,292
Accumulated depreciation	(45,592)		(41,168)
Premises and equipment, net	$	70,792	$	74,124

LEASES (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Summary of information related to operating leases

Information related to operating leases for the years ended December 31, 2021 and 2020 was as follows:


(dollars in thousands)	2021			2020
Operating lease cost	$	2,080		$	2,943
Operating cash flows related to leases	2,566			3,280
Right-of-use assets obtained in exchange for lease obligations	1,118			1,616
Right-of-use assets derecognized due to terminations or impairment	(210)			(4,467)
Weighted average remaining lease term	7.58 years			8.10 years
Weighted average discount rate	2.85		%	2.90		%

Summary of projected minimum rental payments

The projected minimum rental payments under the terms of the leases as of December 31, 2021 are as follows:


(dollars in thousands)	Amount
Year ending December 31,
2022	$	2,180
2023	2,094
2024	1,799
2025	894
2026	763
Thereafter	4,251
Total future minimum lease payments	11,981
Less imputed interest	(1,267)
Total operating lease liabilities	$	10,714

LOAN SERVICING RIGHTS (Tables)

12 Months Ended

Dec. 31, 2021

Transfers and Servicing [Abstract]

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

A summary of loan servicing rights at December 31, 2021 and 2020 is as follows:


	2021				2020
(dollars in thousands)	Serviced Loans		Carrying Value		Serviced Loans		Carrying Value
Commercial FHA	$	2,650,531	$	27,386	$	3,499,258	$	38,322
SBA	50,043		$	774	49,223		$	954
Residential(1)	302,618		$	705	382,302		$	878
Total	$	3,003,192	$	28,865	$	3,930,783	$	40,154

Changes in our commercial FHA loan servicing rights for the years ended December 31, 2021, 2020 and 2019 are summarized as follows:


(dollars in thousands)	2021		2020		2019
Loan servicing rights:
Balance, beginning of period	$	38,322	$	57,637	$	56,252
Originated servicing	—		1,128		4,124
Amortization	(2,965)		(3,162)		(2,739)
Refinancing fee received from third party	(439)		—		—
Permanent impairment	(7,532)		(17,281)		—
Balance, end of period	27,386		38,322		57,637
Valuation allowances:
Balance, beginning of period	—		4,944		2,805
Additions	—		12,337		2,698
Reductions	—		(17,281)		(559)
Balance, end of period	—		—		4,944
Loan servicing rights, net	$	27,386	$	38,322	$	52,693
Fair value:
At beginning of period	$	38,322	$	52,693	$	53,447
At end of period	$	28,368	$	38,322	$	52,693

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets

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


(dollars in thousands)	2021		2020
Banking	$	157,158	$	157,158

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

The Company's intangible assets as of December 31, 2021 and 2020 are summarized as follows:


	2021						2020
(dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Total		Gross Carrying Amount		Accumulated Amortization		Total
Core deposit intangibles	$	57,012	$	(40,603)	$	16,409	$	57,012	$	(36,005)	$	21,007
Customer relationship intangibles	15,918		(7,953)		7,965		14,071		(6,696)		7,375
Total intangible assets	$	72,930	$	(48,556)	$	24,374	$	71,083	$	(42,701)	$	28,382

Schedule of estimated future amortization expense of intangible assets

Estimated amortization expense for future years is as follows:


(dollars in thousands)	Amount
Year ending December 31,
2022	$	5,208
2023	4,433
2024	3,717
2025	2,966
2026	2,450
Thereafter	5,600
Total	$	24,374

DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 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)	2021		2020		2021		2020
Derivative Instruments (included in other assets):
Interest rate lock commitments	$	66,216	$	136,227	$	410	$	2,217
Forward commitments to sell mortgage-backed securities	60,427		218,126		—		—
Total	$	126,643	$	354,353	$	410	$	2,217


	Notional Amounts				Fair Value Loss
(dollars in thousands)	2021		2020		2021		2020
Derivative Instruments (included in other liabilities):
Forward commitments to sell mortgage-backed securities	$	18,362	$	33,240	$	19	$	309

The following table summarizes the Company's receive-fixed, pay-variable interest rate swaps on certain FHLB advances at December 31, 2020:


(dollars in thousands)	2020
Notional Amount	$	100,000
Average remaining life in years	5.3
Weighted average pay rate	0.57		%
Weighted average receive rate	0.22		%

DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2021

Deposits [Abstract]

Schedule summarizes the classification of deposits

The following table summarizes the classification of deposits at December 31, 2021 and 2020:


(dollars in thousands)	2021		2020
Noninterest-bearing demand	$	2,245,701	$	1,469,579
Interest-bearing:
Checking	1,663,021		1,568,888
Money market	869,067		785,871
Savings	679,115		597,966
Time	653,744		678,712
Total deposits	$	6,110,648	$	5,101,016

Schedule of maturities of time deposits

As of December 31, 2021, the scheduled maturities of time deposits were as follows:


(dollars in thousands)	Amount
Year Ending December 31,
2022	$	377,823
2023	134,092
2024	82,430
2025	19,778
2026	39,597
Thereafter	24
Total	$	653,744

- Definition

Tabular disclosure of type of deposit liability.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (e)

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(ii)

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (1)

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (1)

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (d)

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iv)

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (5)

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iii)

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (4)

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (c)

Reference 13: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (2)

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (3)

Reference 15: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)

+ Details

SHORT-TERM BORROWINGS (Tables)

12 Months Ended

Dec. 31, 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 for each of the years ended December 31, 2021 and 2020:


	Repurchase Agreements
(dollars in thousands)	2021			2020
Outstanding at period-end	$	76,803		$	68,957
Average amount outstanding	68,986			60,306
Maximum amount outstanding at any month end	77,497			77,136
Weighted average interest rate:
During period	0.12		%	0.30		%
End of period	0.13		%	0.12		%

FHLB ADVANCES AND OTHER BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2021

FHLB ADVANCES AND OTHER BORROWINGS

Schedule of federal home loan bank (FHLB) advances

The following table summarizes our FHLB advances and other borrowings at December 31, 2021 and 2020:


(dollars in thousands)	2021		2020
Midland States Bancorp, Inc.

Series G redeemable preferred stock – 171 and 171 shares at December 31, 2021 and 2020, respectively at $1,000 per share	$	171	$	171
Midland States Bank
FHLB advances – fixed rate, fixed term at rates averaging 0.24% at December 31, 2020	—		304,000
FHLB advances – putable fixed rate at rates averaging 1.48% and 2.01% at December 31, 2021 and 2020, respectively – maturing through February 2030 with call provisions through February 2022	210,000		475,000
FHLB advances - SOFR floater at rates averaging 1.67% at December 31, 2021 - maturing in October 2023	100,000		—
Total FHLB advances and other borrowings	$	310,171	$	779,171

Schedule of payments over the next five years

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


(dollars in thousands)	Amount
Year Ending December 31,
2022	$	—
2023	140,000
2024	70,000
2025	—
2026	—
Thereafter	100,171
Total	$	310,171

SUBORDINATED DEBT (Tables)

12 Months Ended

Dec. 31, 2021

Subordinated Borrowings [Abstract]

Schedule of summary of company's subordinated debt

The following table summarizes the Company’s subordinated debt at December 31, 2021 and 2020:


(dollars in thousands)	2021		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	39,626		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	72,042		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	26,877		26,829
Total subordinated debt	$	139,091	$	169,795

TRUST PREFERRED DEBENTURES (Tables)

12 Months Ended

Dec. 31, 2021

TRUST PREFERRED DEBENTURES

Summary of trust preferred debentures

The following table summarizes the Company’s trust preferred debentures at December 31, 2021 and 2020:


(dollars in thousands)	2021		2020
Midland States Preferred Securities Trust – variable interest rate equal to LIBOR plus 2.75%, which was 2.87% and 2.96% at December 31, 2021 and 2020, respectively – $10,310 maturing April 23, 2034	$	10,279	$	10,276
Grant Park Statutory Trust I – variable interest rate equal to LIBOR plus 2.85%, which was 2.98% and 3.06%, at December 31, 2021 and 2020, respectively – $3,093 maturing January 23, 2034	2,363		2,314
Love Savings/Heartland Capital Trust III – variable interest rate equal to LIBOR plus 1.75%, which was 1.95% and 1.97% at December 31, 2021 and 2020, respectively – $20,619 maturing December 31, 2036	14,647		14,442
Love Savings/Heartland Capital Trust IV – variable interest rate equal to LIBOR plus 1.47%, which was 1.65% and 1.70% at December 31, 2021 and 2020, respectively – $20,619 maturing September 6, 2037	13,830		13,621
Centrue Statutory Trust II - variable interest rate equal to LIBOR plus 2.65%, which was 2.87% and 2.88% at December 31, 2021 and 2020, respectively - $10,310 maturing June 17, 2034	8,255		8,161
Total trust preferred debentures	$	49,374	$	48,814

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of components of income taxes

The components of income taxes for the years ended December 31, 2021, 2020 and 2019 were as follows:


(dollars in thousands)	2021		2020		2019
Federal:
Current	$	10,044	$	10,924	$	2,318
Deferred	7,926		(3,852)		8,287
State:
Current	144		1,271		1,761
Deferred	(319)		1,134		4,321
Total income tax expense	$	17,795	$	9,477	$	16,687

Schedule of reconciliation of income tax expense

The Company’s income tax expense differed from the statutory federal rate of 21% for the years ended December 31, 2021, 2020 and 2019 as follows:


(dollars in thousands)	2021		2020		2019
Expected income taxes	$	20,814	$	6,723	$	15,218
Less income tax effect of:
Tax-exempt income, net	(2,499)		(2,398)		(2,568)

State tax, net of federal benefit	5,465		1,900		4,805

State tax settlement, net of federal expense	(5,614)		—		—
Equity-based compensation benefit	(93)		239		(484)
Non-deductible transaction costs	—		—		110
Disposition of nondeductible goodwill	—		2,287		—
Valuation allowance	47		10		62

Other	(325)		716		(456)
Actual income tax expense	$	17,795	$	9,477	$	16,687

Schedule of deferred tax assets, net

Deferred tax assets, net in the accompanying consolidated balance sheets at December 31, 2021 and 2020 include the following amounts of deferred tax assets and liabilities:


(dollars in thousands)	2021		2020
Assets:
Allowance for credit losses on loans	$	14,042	$	16,622
Deferred compensation	2,177		2,152
Loans	1,835		2,772

Tax credits	1,067		1,047



Net operating losses	10,113		11,231



Fair value adjustment on investments	879		1,067
Premises and equipment	—		433

Operating lease liabilities	2,946		3,289
Other, net	3,519		3,861
Deferred tax assets	36,578		42,474
Valuation allowance	(118)		(71)
Deferred tax assets, net of valuation allowance	36,460		42,403
Liabilities:
Premises and equipment	472		—
Unrealized gain on securities	569		4,169
Mortgage servicing rights	5,958		8,315
Fair value adjustment on trust preferred debentures	4,264		4,417

Deferred loan costs, net of fees	3,444		3,632
Intangible assets	5,651		6,921


Software development costs	1,446		1,522
Leased equipment	22,297		17,910
Operating lease right-of-use assets	2,318		2,524
Other, net	3,619		1,315
Deferred tax liabilities	50,038		50,725
Deferred tax liabilities, net	$	(13,578)	$	(8,322)

RETIREMENT PLANS (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Schedule of deferred compensation arrangement


(dollars in thousands)	2021		2020		2019
Beginning balance, trust asset	$	3,657	$	—	$	—
Contributions	207		3,264		—
Gain on trust assets	359		499		—
Distributions	(509)		(106)		—
Ending balance, trust asset	$	3,714	$	3,657	$	—

Beginning balance, deferred compensation liability	$	3,657	$	2,978	$	2,383
Deferred compensation	207		350		751
Expense on deferred compensation liability	359		506		8
Distributions	(509)		(177)		(164)
Ending balance, deferred compensation liability	$	3,714	$	3,657	$	2,978

The following table summarizes the activity in the liability balance of the director nonqualified deferred compensation arrangement for the years ended December 31, 2021, 2020 and 2019:


(dollars in thousands)	2021		2020		2019
Beginning balance, deferred compensation liability	$	4,560	$	5,007	$	4,135
Deferred compensation	606		586		679
Expense on deferred compensation liability	251		270		236
Distributions	(45)		(1,303)		(43)
Ending balance, deferred compensation liability	$	5,372	$	4,560	$	5,007

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Summary of the activity for restricted stock awards

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


	Number outstanding	Weighted average grant due fair value
Nonvested, beginning of year	233,010	$	22.64
Granted	128,049	25.67
Vested	(77,319)	24.60
Forfeited	(21,922)	21.66
Nonvested, end of year	261,818	$	23.62

Summary of our stock option plan and changes made

The summary of our stock option activity during the years ended December 31, 2021 and 2020 is as follows:


	2021				2020
	Shares	Weighted average exercise price		Weighted average remaining contractual life	Shares	Weighted average exercise price		Weighted average remaining contractual life
Option outstanding, beginning of year	467,489	$	21.40		623,122	$	20.83
Options granted	—	—			—	—
Options exercised	(116,147)	19.16			(39,500)	17.90
Options forfeited	—	—			(3,268)	28.89
Options expired	(26,548)	27.07			(112,865)	19.26
Options outstanding, end of year	324,794	21.74		3.1 years	467,489	21.40		4.1 years
Options exercisable	324,794	21.74		3.1 years	463,590	21.31		4.1 years
Options vested and expected to vest	324,794	21.74		3.1 years	467,060	21.39		4.1 years

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

The following table summarizes information about the Company’s nonvested stock option activity for 2021:


	Shares	Weighted average grant date fair value
Nonvested, beginning of year	3,899	$	4.33
Granted	—	—
Vested	(3,899)	4.33
Forfeited	—	—
Nonvested, end of year	—	—

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 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 years ended December 31, 2021, 2020 and 2019:


(dollars in thousands, except share and per share data)	2021		2020		2019
Net income	$	81,317	$	22,537	$	55,784
Preferred dividends declared	—		—		(191)
Preferred stock, premium amortization	—		—		145
Net income available to common shareholders	81,317		22,537		55,738
Common shareholder dividends	(24,912)		(24,699)		(23,389)
Unvested restricted stock award dividends	(260)		(259)		(210)
Undistributed earnings to unvested restricted stock awards	(564)		—		(267)
Undistributed earnings to common shareholders	$	55,581	$	(2,421)	$	31,872
Basic
Distributed earnings to common shareholders	$	24,912	$	24,699	$	23,389
Undistributed earnings to common shareholders	55,581		(2,421)		31,872
Total common shareholders earnings, basic	$	80,493	$	22,278	$	55,261
Diluted
Distributed earnings to common shareholders	$	24,912	$	24,699	$	23,389
Undistributed earnings to common shareholders	55,581		(2,421)		31,872
Total common shareholders earnings	80,493		22,278		55,261
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	2		—		2
Total common shareholders earnings, diluted	$	80,495	$	22,278	$	55,263
Weighted average common shares outstanding, basic	22,481,389		23,336,881		24,288,793
Options	65,964		9,245		204,638
Weighted average common shares outstanding, diluted	22,547,353		23,346,126		24,493,431
Basic earnings per common share	$	3.58	$	0.95	$	2.28
Diluted earnings per common share	3.57		0.95		2.26

CAPITAL REQUIREMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Capital Requirements [Abstract]

Schedule of actual and required capital amounts and ratios

At December 31, 2021 and 2020, the Company’s and the Bank’s actual and required capital ratios were as follows:


	Actual				Fully Phased-In Regulatory Guidelines Minimum				Required to be Well Capitalized Under Prompt Corrective Action Requirements
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2021
Total risk-based capital ratio
Midland States Bancorp, Inc.	$	732,177	12.19	%	$	630,482	10.50	%	N/A		N/A
Midland States Bank	672,500		11.21		629,911		10.50		$	599,915	10.00%
Tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	550,195		9.16		510,390		8.50		N/A		N/A
Midland States Bank	629,389		10.49		509,928		8.50		479,932		8.00
Common equity tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	485,244		8.08		420,321		7.00		N/A		N/A
Midland States Bank	629,389		10.49		419,940		7.00		389,945		6.50
Tier 1 leverage ratio
Midland States Bancorp, Inc.	550,195		7.75		283,941		4.00		N/A		N/A
Midland States Bank	629,389		8.89		283,324		4.00		354,156		5.00

December 31, 2020
Total risk-based capital ratio
Midland States Bancorp, Inc.	$	710,417	13.24	%	$	563,610	10.50	%	N/A		N/A
Midland States Bank	631,585		11.77		563,420		10.50		$	536,591	10.00%
Tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	494,043		9.20		456,256		8.50		N/A		N/A
Midland States Bank	578,681		10.78		456,102		8.50		429,273		8.00
Common equity tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	429,092		7.99		375,740		7.00		N/A		N/A
Midland States Bank	578,681		10.78		375,614		7.00		348,784		6.50
Tier 1 leverage ratio
Midland States Bancorp, Inc.	494,043		7.50		263,651		4.00		N/A		N/A
Midland States Bank	578,681		8.78		263,537		4.00		329,421		5.00

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured and recorded at fair value


	2021
(dollars in thousands)	Total		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. Treasury securities	$	64,917	$	64,917	$	—	$	—
U.S. government sponsored entities and U.S. agency securities	33,817		—		33,817		—
Mortgage-backed securities - agency	440,270		—		440,270		—
Mortgage-backed securities - non-agency	28,706		—		28,706		—
State and municipal securities	143,099		—		143,099		—
Corporate securities	195,794		—		194,859		935
Equity securities	9,529		9,529		—		—
Loans held for sale	32,045		—		32,045		—
Interest rate lock commitments	410		—		410		—
Interest rate swap contracts	5,473		—		5,473		—
Total	$	954,060	$	74,446	$	878,679	$	935
Liabilities
Forward commitments to sell mortgage-backed securities	$	19	$	—	$	19	$	—
Interest rate swap contracts	378		—		378		—
Total	$	397	$	—	$	397	$	—

Assets measured at fair value on a non-recurring basis:
Loan servicing rights	$	28,865	$	—	$	—	$	28,865

Nonperforming loans	36,542		24,358		6,129		6,055
Other real estate owned	12,059		—		12,059		—
Assets held for sale	2,284		—		2,284		—


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

Assets measured at fair value on a non-recurring basis:
Loan servicing rights	$	28,865	$	—	$	—	$	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)


	Corporate Securities
(dollars in thousands)	2021		2020
Balance, beginning of period	$	959	$	955
Total realized in earnings (1)	14		8
Total unrealized in other comprehensive income (2)	(24)		4
Net settlements (principal and interest)	(14)		(8)
Balance, end of period	$	935	$	959

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

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

Fair value, assets measured on recurring basis


(dollars in thousands)	Fair value		Valuation technique	Unobservable input / assumptions	Range (weighted average)(1)
December 31, 2021
Corporate securities	$	935	Consensus pricing	Net market price	0.0	%	—	7.0%	(4.5)%

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

The following table presents (gains) losses recognized on assets measured on a non-recurring basis for the years ended December 31, 2021, 2020 and 2019:


(dollars in thousands)	2021		2020		2019
Loan servicing rights	$	7,532	$	12,337	$	2,139
Mortgage servicing rights held for sale	222		1,692		(490)
Nonperforming loans	14,468		24,611		10,259
Other real estate owned	454		1,390		16
Assets held for sale	—		10,404		3,577
Total loss on assets measured on a nonrecurring basis	$	22,676	$	50,434	$	15,501

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


(dollars in thousands)	Fair Value		Valuation technique	Unobservable input / assumptions	Range (weighted average)
December 31, 2021
Loan servicing rights:
Commercial MSR	$	28,368	Discounted cash flow	Prepayment speed	8.00%	-	18.00%	(8.24)%
				Discount rate	10.00%	-	27.00%	(11.87)%

SBA servicing rights	$	898	Discounted cash flow	Prepayment speed	12.27%	-	14.14%	(13.88)%
				Discount rate	10.00%	-	12.00%	(11.00)%

Residential MSR	$	705	Discounted cash flow	Prepayment speed	11.94%	-	27.48%	(14.94)%
				Discount rate	9.00%	-	11.50%	(10.25)%

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)%

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


	2021						2020
(dollars in thousands)	Aggregate fair value		Difference		Contractual principal		Aggregate fair value		Difference		Contractual principal
Commercial loans held for sale	$	19,230	$	—	$	19,230	$	126,123	$	67	$	126,056
Residential loans held for sale	12,815		584		12,231		11,967		743		11,224
Total loans held for sale	$	32,045	$	584	$	31,461	$	138,090	$	810	$	137,280


(dollars in thousands)	2021		2020		2019
Commercial loans held for sale	$	(67)	$	(139)	$	(389)
Residential loans held for sale	(148)		318		7
Total loans held for sale	$	(215)	$	179	$	(382)

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

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


	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	$	673,297	$	673,297	$	673,297	$	—	$	—
Federal funds sold	7,074		7,074		7,074		—		—

Loans, net	5,173,739		5,221,886		—		—		5,221,886
Accrued interest receivable	19,470		19,470		—		19,470		—

Liabilities
Deposits	$	6,110,648	$	6,109,077	$	—	$	6,109,077	$	—
Short-term borrowings	76,803		76,803		—		76,803		—
FHLB and other borrowings	310,171		317,464		—		317,464		—
Subordinated debt	139,091		148,386		—		148,386		—
Trust preferred debentures	49,374		57,827		—		57,827		—
Accrued interest payable	2,848		2,848		—		2,848		—


	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		—
Accrued interest payable	4,441		4,441		—		4,441		—

- Definition

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

+ References + Details

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of loan commitments

Loan commitments at December 31, 2021 and 2020 were as follows:


(dollars in thousands)	2021		2020
Commitments to extend credit	$	994,709	$	894,212
Financial guarantees – standby letters of credit	14,325		15,889

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Schedule of segment financial information

Selected business segment financial information as of and for the years ended December 31, 2021, 2020 and 2019 were as follows:


(dollars in thousands)	Banking		Wealth Management		Other		Total
December 31, 2021
Net interest income (expense)	$	218,309	$	—	$	(10,634)	$	207,675
Provision for credit losses on loans	3,393		—		—		3,393
Noninterest income	42,249		26,876		774		69,899
Noninterest expense	158,803		17,372		(1,106)		175,069
Income (loss) before income taxes (benefit)	98,362		9,504		(8,754)		99,112
Income taxes (benefit)	17,218		2,679		(2,102)		17,795
Net income (loss)	$	81,144	$	6,825	$	(6,652)	$	81,317
Total assets	$	7,460,114	$	28,883	$	(45,192)	$	7,443,805

December 31, 2020
Net interest income (expense)	$	211,120	$	—	$	(11,984)	$	199,136
Provision for credit losses on loans	44,361		—		—		44,361
Noninterest income	38,706		22,802		(259)		61,249
Noninterest expense	170,025		14,938		(953)		184,010
Income (loss) before income taxes (benefit)	35,440		7,864		(11,290)		32,014
Income taxes (benefit)	10,020		2,194		(2,737)		9,477
Net income (loss)	$	25,420	$	5,670	$	(8,553)	$	22,537
Total assets	$	6,983,254	$	29,069	$	(143,783)	$	6,868,540

December 31, 2019
Net interest income (expense)	$	201,534	$	—	$	(11,719)	$	189,815
Provision for credit losses on loans	16,985		—		—		16,985
Noninterest income	53,683		21,832		(233)		75,282
Noninterest expense	160,364		14,850		427		175,641
Income (loss) before income taxes (benefit)	77,868		6,982		(12,379)		72,471
Income taxes (benefit)	18,195		1,850		(3,358)		16,687
Net income (loss)	$	59,673	$	5,132	$	(9,021)	$	55,784
Total assets	$	6,085,441	$	27,521	$	(25,945)	$	6,087,017

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

12 Months Ended

Dec. 31, 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 years ended December 31, 2021, 2020 and 2019.


(dollars in thousands)	2021		2020		2019
Noninterest income - in-scope of Topic 606
Wealth management revenue:
Trust management/administration fees	$	20,954	$	16,953	$	16,114
Investment advisory fees	1,282		2,009		2,171
Investment brokerage fees	2,050		1,465		1,165
Other	2,525		2,375		2,382
Service charges on deposit accounts:
Nonsufficient fund fees	5,339		5,589		7,721
Other	3,009		3,014		3,306
Interchange revenues	14,500		12,266		11,992
Other income:
Merchant services revenue	1,511		1,381		1,506
Other	3,850		3,161		3,475
Noninterest income - out-of-scope of Topic 606	14,879		13,036		25,450
Total noninterest income	$	69,899	$	61,249	$	75,282

PARENT COMPANY ONLY FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Schedule of condensed balance sheets


Condensed Balance Sheets
(dollars in thousands)
	December 31,
	2021		2020
Assets:
Cash	$	37,876	$	58,904
Investment in common stock of subsidiaries	809,143		772,758

Other assets	8,094		11,317
Total assets	$	855,113	$	842,979
Liabilities:
Subordinated debt	$	139,091	$	169,795
Trust preferred debentures	49,374		48,814
Other borrowings	171		171


Other liabilities	2,640		2,808
Total liabilities	191,276		221,588
Shareholders’ equity	663,837		621,391
Total liabilities and shareholders’ equity	$	855,113	$	842,979

Schedule of condensed statement of income


Condensed Statements of Income
(dollars in thousands)

	Years ended December 31,
	2021		2020		2019
Dividends from subsidiaries	$	45,350	$	89,890	$	43,900
Other income	932		—		—
Interest expense	10,668		12,054		11,798
Other expense	984		1,309		2,753
Income before income tax benefit and equity in undistributed income (loss) of subsidiaries	34,630		76,527		29,349
Income tax benefit	2,105		2,749		3,371
Income before equity in undistributed income (loss) of subsidiaries	36,735		79,276		32,720
Equity in undistributed income (loss) of subsidiaries	44,582		(56,739)		23,064
Net income	$	81,317	$	22,537	$	55,784

Schedule of condensed cash flows


Condensed Statements of Cash Flows
(dollars in thousands)

	Years ended December 31,
	2021		2020		2019
Cash flows from operating activities:
Net income	$	81,317	$	22,537	$	55,784
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed (income) loss of subsidiaries	(44,582)		56,739		(23,064)
Share-based compensation expense	1,938		2,175		2,364
Change in other assets	3,223		(6,382)		(2,604)
Change in other liabilities	763		471		1,528
Net cash provided by operating activities	42,659		75,540		34,008
Cash flows from investing activities:
Net cash paid in acquisition	—		—		(1,021)
Net cash received in dissolution of subsidiary	2,003		—		—
Net cash provided by (used in) investing activities	2,003		—		(1,021)
Cash flows from financing activities:
Proceeds from issuance of subordinated debt, net of issuance costs	—		—		98,265
Payments made on subordinated debt	(31,075)		(7,443)		(19,543)

Subordinated debt prepayment fees	—		193		1,778
Payments made on other borrowings	—		—		(56,475)
Common stock repurchased	(11,692)		(39,615)		(4,019)
Redemption of Series G preferred stock	—		(10)		—
Redemption of Series H preferred stock	—		—		(2,636)
Cash dividends paid on common stock	(25,172)		(24,958)		(23,599)
Cash dividends paid on preferred stock	—		—		(191)
Proceeds from issuance of common stock under employee benefit plans	2,249		2,524		5,794
Net cash used in by financing activities	(65,690)		(69,309)		(626)
Net (decrease) increase in cash	(21,028)		6,231		32,361
Cash:
Beginning of period	58,904		52,673		20,312
End of period	$	37,876	$	58,904	$	52,673

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Supplemental disclosures of cash flow information:
Interest paid on deposits and borrowed funds	$ 31,735	$ 47,712	$ 58,158
Income tax paid, net of refunds	7,759	2,977	479
Supplemental disclosures of noncash investing and financing activities:
Transfer of loans to loans held for sale	123,117	542,060	419,215
Transfer of loans to other real estate owned	805	16,736	3,819
Transfer of premises and equipment, net to assets held for sale	23	11,344	4,350
Transfer of loan servicing rights held for sale, at lower of cost or market to mortgage servicing rights	$ 705	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($)		12 Months Ended
	Jan. 01, 2020	Dec. 31, 2021	Dec. 31, 2020
Accrued interest receivable		$ 15,900,000	$ 19,900,000
Increase in allowance for credit losses	$ 12,800,000
Increase in liabilities for unfunded commitment	$ 300,000
Threshold amount for non accrual loans		500,000
Threshold amount for accruing loans past due more than 90 days		100,000
Liabilities for unfunded commitments		$ 1,900,000	$ 2,400,000
Minimum
Percentage cost of related equipment to unguaranteed residual values		3.00%
Other intangible assets amortized over a period		1 year
Maximum
Percentage cost of related equipment to unguaranteed residual values		15.00%
Other intangible assets amortized over a period		20 years
Premises \| Minimum
Estimated useful lives		10 years
Premises \| Maximum
Estimated useful lives		40 years
Furniture and equipment \| Minimum
Estimated useful lives		3 years
Furniture and equipment \| Maximum
Estimated useful lives		10 years

ACQUISITIONS AND DISPOSITIONS - Narrative (Details) - USD ($) $ in Thousands			12 Months Ended
	Jun. 01, 2021	Aug. 28, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Business Acquisition
Proceeds from sale of commercial FHA origination platform			$ 0	$ 7,502	$ 0
Income taxes			17,795	$ 9,477	$ 16,687
Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Commercial FHA Origination Platform
Business Acquisition
Proceeds from sale of commercial FHA origination platform		$ 7,500
Goodwill derecognized		10,900
Income taxes		$ 3,000
ATG Trust
Business Acquisition
Fair value of assets acquired	$ 399,700
Total consideration	$ 2,700
Transaction and integration costs			$ 400

ACQUISITIONS AND DISPOSITIONS - Allocation of Consideration (Details) - ATG Trust $ in Thousands	Jul. 17, 2019 USD ($)
Assets acquired:
Intangible assets	$ 1,847
Other assets	1,269
Total assets acquired	3,116
Liabilities assumed:
Other liabilities	401
Net assets acquired and consideration paid	$ 2,715
Intangible assets:
Estimated useful life	6 years
Customer relationship intangibles
Intangible assets:
Total intangible assets	$ 1,847
Estimated useful life	6 years

CASH AND DUE FROM BANKS (Details)	Dec. 31, 2021 USD ($)
Cash and Cash Equivalents [Abstract]
Required cash reserve	$ 0

INVESTMENT SECURITIES - Classified (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Investment securities available for sale
Amortized Cost	$ 904,695	$ 661,713
Gross unrealized gains	11,505	16,510
Gross unrealized losses	9,376	1,146
Allowance for credit losses	221	366	$ 0
Fair value	906,603	676,711
U.S. Treasury securities
Investment securities available for sale
Amortized Cost	65,347
Gross unrealized gains	0
Gross unrealized losses	430
Allowance for credit losses	0
Fair value	64,917
U.S. government sponsored entities and U.S. agency securities
Investment securities available for sale
Amortized Cost	34,569	35,287
Gross unrealized gains	79	377
Gross unrealized losses	831	97
Allowance for credit losses	0	0
Fair value	33,817	35,567
Mortgage-backed securities - agency
Investment securities available for sale
Amortized Cost	444,484	338,340
Gross unrealized gains	2,687	6,284
Gross unrealized losses	6,901	47
Allowance for credit losses	0	0
Fair value	440,270	344,577
Mortgage-backed securities - non-agency
Investment securities available for sale
Amortized Cost	29,037	20,411
Gross unrealized gains	50	333
Gross unrealized losses	381	0
Allowance for credit losses	0	0
Fair value	28,706	20,744
State and municipal securities
Investment securities available for sale
Amortized Cost	137,904	122,488
Gross unrealized gains	5,561	7,311
Gross unrealized losses	366	5
Allowance for credit losses	0	29	0
Fair value	143,099	129,765
Corporate securities
Investment securities available for sale
Amortized Cost	193,354	145,187
Gross unrealized gains	3,128	2,205
Gross unrealized losses	467	997
Allowance for credit losses	221	337	$ 0
Fair value	$ 195,794	$ 146,058

INVESTMENT SECURITIES - Narrative (Details) $ in Thousands	Dec. 31, 2021 USD ($) security	Dec. 31, 2020 USD ($)
Marketable Securities [Line Items]
Number of investment securities available for sale \| security	113
Aggregate depreciation	1.85%
Equity securities	$ 9,529	$ 9,424
Investment Securities
Marketable Securities [Line Items]
Amounts pledged for public deposits	$ 371,000	$ 327,000

INVESTMENT SECURITIES - Amortized cost and fair value (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Amortized cost
Within one year	$ 9,877
After one year through five years	137,694
After five years through ten years	244,626
After ten years	38,977
Mortgage-backed securities	473,521
Total investment securities available for sale	904,695
Fair value
Within one year	9,976
After one year through five years	139,456
After five years through ten years	248,197
After ten years	39,998
Mortgage-backed securities	468,976
Total investment securities available for sale	$ 906,603

INVESTMENT SECURITIES - Summary of Available-for-Sale Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Investment securities available for sale
Proceeds from sales	$ 14,777	$ 28,256	$ 33,464
Gross realized gains on sales	537	1,721	786
Gross realized losses on sales	0	0	(190)
Equity securities
Proceeds from sales	0	0	105
Gross realized gains on sales	0	0	78
Gross realized losses on sales	0	0	0
Net unrealized gains (losses)	$ 361	$ 577	$ 93

INVESTMENT SECURITIES - Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Changes in ACL on investment securities available for sale:
Allowance for credit losses	$ 221	$ 366	$ 0
Balance, beginning of period	(145)	366
Mortgage-backed securities - non-agency
Changes in ACL on investment securities available for sale:
Allowance for credit losses	0	0
State and municipal securities
Changes in ACL on investment securities available for sale:
Allowance for credit losses	0	29	0
Balance, beginning of period	(29)	29
Corporate securities
Changes in ACL on investment securities available for sale:
Allowance for credit losses	221	337	$ 0
Balance, beginning of period	$ (116)	$ 337

INVESTMENT SECURITIES - Continuous unrealized loss position (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value
Less than 12 Months, Fair value	$ 451,195	$ 56,085
Less than 12 Months, Unrealized loss	7,977	666
12 Months or more, Fair value	21,021	0
12 Months or more, Unrealized loss	932	0
Total, Fair value	472,216	56,085
Total, Unrealized loss	8,909	666
U.S. Treasury securities
Fair Value
Less than 12 Months, Fair value	64,917
Less than 12 Months, Unrealized loss	430
12 Months or more, Fair value	0
12 Months or more, Unrealized loss	0
Total, Fair value	64,917
Total, Unrealized loss	430
U.S. government sponsored entities and U.S. agency securities
Fair Value
Less than 12 Months, Fair value	17,487	9,903
Less than 12 Months, Unrealized loss	263	97
12 Months or more, Fair value	9,432	0
12 Months or more, Unrealized loss	568	0
Total, Fair value	26,919	9,903
Total, Unrealized loss	831	97
Mortgage-backed securities - agency
Fair Value
Less than 12 Months, Fair value	317,372	26,172
Less than 12 Months, Unrealized loss	6,633	47
12 Months or more, Fair value	9,051	0
12 Months or more, Unrealized loss	268	0
Total, Fair value	326,423	26,172
Total, Unrealized loss	6,901	47
Mortgage-backed securities - non-agency
Fair Value
Less than 12 Months, Fair value	24,095
Less than 12 Months, Unrealized loss	381
12 Months or more, Fair value	0
12 Months or more, Unrealized loss	0
Total, Fair value	24,095
Total, Unrealized loss	381
State and municipal securities
Fair Value
Less than 12 Months, Fair value	27,324
Less than 12 Months, Unrealized loss	270
12 Months or more, Fair value	2,538
12 Months or more, Unrealized loss	96
Total, Fair value	29,862
Total, Unrealized loss	366
Corporate securities
Fair Value
Less than 12 Months, Fair value	0	20,010
Less than 12 Months, Unrealized loss	0	522
12 Months or more, Fair value	0	0
12 Months or more, Unrealized loss	0	0
Total, Fair value	0	20,010
Total, Unrealized loss	$ 0	$ 522

LOANS - Summary of loans (Details) - USD ($) $ in Thousands	12 Months Ended
LOANS - Summary of loans (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Summary of loans
Loans	$ 5,224,801	$ 5,103,331
Loans, additional information
Net deferred loan fees	4,600	700
Unearned income	46,100	46,500
Loans held for sale	32,045	138,090
Proceeds from sales of loans held for sale	739,954	1,218,950	$ 949,745
Commercial Portfolio
Summary of loans
Loans	3,460,765	3,384,285
Commercial Portfolio \| Commercial
Summary of loans
Loans	770,670	937,382
Commercial Portfolio \| Commercial other
Summary of loans
Loans	679,518	748,193
Commercial Portfolio \| Commercial real estate non-owner occupied
Summary of loans
Loans	1,105,333	871,451
Commercial Portfolio \| Commercial real estate owner occupied
Summary of loans
Loans	469,658	423,257
Commercial Portfolio \| Multi-family
Summary of loans
Loans	171,875	151,534
Commercial Portfolio \| Farmland
Summary of loans
Loans	69,962	79,731
Commercial Portfolio \| Construction and land development
Summary of loans
Loans	193,749	172,737
Residential Portfolio \| Residential first lien
Summary of loans
Loans	274,412	358,329
Residential Portfolio \| Other residential
Summary of loans
Loans	63,739	84,551
Consumer Portfolio \| Consumer
Summary of loans
Loans	106,008	80,642
Consumer Portfolio \| Consumer other
Summary of loans
Loans	896,597	785,460
Finance Leases Portfolio
Summary of loans
Loans	423,280	410,064
Commercial Real Estate, Residential Real Estate And Consumer Loans
Loans, additional information
Proceeds from sales of loans held for sale	$ 740,000	$ 1,220,000

LOANS - Narrative (Details)	3 Months Ended	12 Months Ended
LOANS - Narrative (Details)	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($) region	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Summary of loans
Loans		$ 5,224,801,000	$ 5,103,331,000
Threshold amount for non accrual loans		500,000
Amount of financing receivable reclassified to non-accrual	$ 9,800,000
Interest income recognized on nonaccrual loans		0	0	$ 0
Additional interest income that would have been recorded had they been current		2,700,000	3,300,000	2,200,000
Recognized interest income on loans modified under troubled debt restructurings		$ 100,000	100,000	100,000
Number of main regions \| region		4
Allowance for loan losses on TDRs		$ 700,000	800,000
Unfunded commitments in connection with TDRs		0	0
Commercial Portfolio
Summary of loans
Loans		3,460,765,000	3,384,285,000
COVID-19
Summary of loans
Outstanding balance of modifications made, not considered TDRs		13,300,000	209,100,000
PPP Loans \| Commercial Portfolio
Summary of loans
Loans		52,500,000	184,400,000
Commercial FHA Warehouse Lines \| Commercial Portfolio
Summary of loans
Loans		91,900,000	273,300,000
Directors, executive officers, principal shareholders and affiliates
Summary of loans
Loans outstanding from related parties		$ 13,869,000	$ 19,693,000	$ 22,989,000

LOANS - Loans to Directors, Executive Officers, Principal Shareholders and Affiliates (Details) - Directors, executive officers, principal shareholders and affiliates - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Summary of loans
Beginning balance	$ 19,693	$ 22,989
New loans and other additions	4,745	2,563
Repayments and other reductions	(10,569)	(5,859)
Ending balance	$ 13,869	$ 19,693

LOANS - Summary of changes in the ACL on loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Summary of impaired loans
Beginning balance	$ 60,443	$ 28,028	$ 20,903
Provision for credit losses on loans	3,950	43,149	16,985
Charge-offs	(15,420)	(25,454)	(12,068)
Recoveries	2,089	1,937	2,208
Ending balance	51,062	60,443	28,028
PCI Loans
Summary of impaired loans
Beginning balance		4,237
Ending balance			4,237
ASU No. 2016-13
Summary of impaired loans
Beginning balance		8,546
Ending balance			8,546
Commercial Portfolio \| Commercial
Summary of impaired loans
Beginning balance	19,851	10,031	9,524
Provision for credit losses on loans	648	11,890	3,852
Charge-offs	(6,465)	(5,589)	(3,412)
Recoveries	341	147	67
Ending balance	14,375	19,851	10,031
Commercial Portfolio \| Commercial \| PCI Loans
Summary of impaired loans
Beginning balance		1,045
Ending balance			1,045
Commercial Portfolio \| Commercial \| ASU No. 2016-13
Summary of impaired loans
Beginning balance		2,327
Ending balance			2,327
Commercial Portfolio \| Commercial Real Estate
Summary of impaired loans
Beginning balance	25,465	10,272	4,723
Provision for credit losses on loans	1,031	23,091	7,939
Charge-offs	(3,524)	(13,637)	(3,339)
Recoveries	21	324	949
Ending balance	22,993	25,465	10,272
Commercial Portfolio \| Commercial Real Estate \| PCI Loans
Summary of impaired loans
Beginning balance		1,311
Ending balance			1,311
Commercial Portfolio \| Commercial Real Estate \| ASU No. 2016-13
Summary of impaired loans
Beginning balance		4,104
Ending balance			4,104
Commercial Portfolio \| Construction and land development
Summary of impaired loans
Beginning balance	1,433	290	372
Provision for credit losses on loans	(234)	(121)	(53)
Charge-offs	(448)	(376)	(44)
Recoveries	221	107	15
Ending balance	972	1,433	290
Commercial Portfolio \| Construction and land development \| PCI Loans
Summary of impaired loans
Beginning balance		809
Ending balance			809
Commercial Portfolio \| Construction and land development \| ASU No. 2016-13
Summary of impaired loans
Beginning balance		724
Ending balance			724
Residential Portfolio \| Residential Real Estate Loans
Summary of impaired loans
Beginning balance	3,929	2,499	2,041
Provision for credit losses on loans	(1,085)	(458)	1,392
Charge-offs	(398)	(522)	(1,076)
Recoveries	249	184	142
Ending balance	2,695	3,929	2,499
Residential Portfolio \| Residential Real Estate Loans \| PCI Loans
Summary of impaired loans
Beginning balance		1,015
Ending balance			1,015
Residential Portfolio \| Residential Real Estate Loans \| ASU No. 2016-13
Summary of impaired loans
Beginning balance		1,211
Ending balance			1,211
Consumer Portfolio \| Consumer
Summary of impaired loans
Beginning balance	2,338	2,642	2,154
Provision for credit losses on loans	864	1,212	1,767
Charge-offs	(1,158)	(1,624)	(1,946)
Recoveries	514	645	667
Ending balance	2,558	2,338	2,642
Consumer Portfolio \| Consumer \| PCI Loans
Summary of impaired loans
Beginning balance		57
Ending balance			57
Consumer Portfolio \| Consumer \| ASU No. 2016-13
Summary of impaired loans
Beginning balance		(594)
Ending balance			(594)
Finance Leases Portfolio
Summary of impaired loans
Beginning balance	7,427	2,294	2,089
Provision for credit losses on loans	2,726	7,535	2,088
Charge-offs	(3,427)	(3,706)	(2,251)
Recoveries	743	530	368
Ending balance	$ 7,469	7,427	2,294
Finance Leases Portfolio \| PCI Loans
Summary of impaired loans
Beginning balance		0
Ending balance			0
Finance Leases Portfolio \| ASU No. 2016-13
Summary of impaired loans
Beginning balance		$ 774
Ending balance			$ 774

LOANS - Risk rating (Details) - Consumer Loans And Equipment Finance Loans And Leases	Dec. 31, 2021
Credit Risk State One \| Minimum
Risk category
Consumer loans and equipment finance loans and leases days past due	0 days
Credit Risk State One \| Maximum
Risk category
Consumer loans and equipment finance loans and leases days past due	14 days
Credit Risk State Two \| Minimum
Risk category
Consumer loans and equipment finance loans and leases days past due	15 days
Credit Risk State Two \| Maximum
Risk category
Consumer loans and equipment finance loans and leases days past due	29 days
Credit Risk State Three \| Minimum
Risk category
Consumer loans and equipment finance loans and leases days past due	30 days
Credit Risk State Three \| Maximum
Risk category
Consumer loans and equipment finance loans and leases days past due	59 days
Credit Risk State Four \| Minimum
Risk category
Consumer loans and equipment finance loans and leases days past due	60 days
Credit Risk State Four \| Maximum
Risk category
Consumer loans and equipment finance loans and leases days past due	89 days
Credit Risk State Default \| Minimum
Risk category
Consumer loans and equipment finance loans and leases days past due	90 days

LOANS - Non-accrural (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Summary of loans
Nonaccrural with Allowance	$ 19,237	$ 38,489
Nonaccrural with no Allowance	16,326	11,139
Total Nonaccrual	35,563	49,628
Commercial Portfolio
Summary of loans
Nonaccrural with Allowance	13,665	25,291
Nonaccrural with no Allowance	15,494	10,068
Total Nonaccrual	29,159	35,359
Commercial Portfolio \| Commercial
Summary of loans
Nonaccrural with Allowance	4,681	3,498
Nonaccrural with no Allowance	2,275	0
Total Nonaccrual	6,956	3,498
Commercial Portfolio \| Commercial other
Summary of loans
Nonaccrural with Allowance	4,467	2,634
Nonaccrural with no Allowance	0	0
Total Nonaccrual	4,467	2,634
Commercial Portfolio \| Commercial real estate non-owner occupied
Summary of loans
Nonaccrural with Allowance	1,914	5,509
Nonaccrural with no Allowance	9,912	3,823
Total Nonaccrual	11,826	9,332
Commercial Portfolio \| Commercial real estate owner occupied
Summary of loans
Nonaccrural with Allowance	2,164	3,598
Nonaccrural with no Allowance	1,340	3,227
Total Nonaccrual	3,504	6,825
Commercial Portfolio \| Multi-family
Summary of loans
Nonaccrural with Allowance	201	7,921
Nonaccrural with no Allowance	1,967	2,325
Total Nonaccrual	2,168	10,246
Commercial Portfolio \| Farmland
Summary of loans
Nonaccrural with Allowance	155	0
Nonaccrural with no Allowance	0	0
Total Nonaccrual	155	0
Commercial Portfolio \| Construction and land development
Summary of loans
Nonaccrural with Allowance	83	2,131
Nonaccrural with no Allowance	0	693
Total Nonaccrual	83	2,824
Residential Portfolio \| Residential first lien
Summary of loans
Nonaccrural with Allowance	3,116	8,534
Nonaccrural with no Allowance	832	1,071
Total Nonaccrual	3,948	9,605
Residential Portfolio \| Other residential
Summary of loans
Nonaccrural with Allowance	836	2,437
Nonaccrural with no Allowance	0	0
Total Nonaccrual	836	2,437
Consumer Portfolio \| Consumer
Summary of loans
Nonaccrural with Allowance	110	262
Nonaccrural with no Allowance	0	0
Total Nonaccrual	110	262
Finance Leases Portfolio
Summary of loans
Nonaccrural with Allowance	1,510	1,965
Nonaccrural with no Allowance	0	0
Total Nonaccrual	$ 1,510	$ 1,965

LOANS - Collateral dependent loans (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Summary of loans
Collateral dependent loans	$ 20,813	$ 18,973
Real Estate
Summary of loans
Collateral dependent loans	14,909	18,973
Blanket Lien
Summary of loans
Collateral dependent loans	5,402	0
Equipment
Summary of loans
Collateral dependent loans	502	0
Commercial Portfolio \| Commercial
Summary of loans
Collateral dependent loans	5,402
Commercial Portfolio \| Commercial \| Real Estate
Summary of loans
Collateral dependent loans	0
Commercial Portfolio \| Commercial \| Blanket Lien
Summary of loans
Collateral dependent loans	5,402
Commercial Portfolio \| Commercial \| Equipment
Summary of loans
Collateral dependent loans	0
Commercial Portfolio \| Commercial other
Summary of loans
Collateral dependent loans	502
Commercial Portfolio \| Commercial other \| Real Estate
Summary of loans
Collateral dependent loans	0
Commercial Portfolio \| Commercial other \| Blanket Lien
Summary of loans
Collateral dependent loans	0
Commercial Portfolio \| Commercial other \| Equipment
Summary of loans
Collateral dependent loans	502
Commercial Portfolio \| Commercial real estate non-owner occupied
Summary of loans
Collateral dependent loans	11,604	8,159
Commercial Portfolio \| Commercial real estate non-owner occupied \| Real Estate
Summary of loans
Collateral dependent loans	11,604	8,159
Commercial Portfolio \| Commercial real estate non-owner occupied \| Blanket Lien
Summary of loans
Collateral dependent loans	0	0
Commercial Portfolio \| Commercial real estate non-owner occupied \| Equipment
Summary of loans
Collateral dependent loans	0	0
Commercial Portfolio \| Commercial real estate owner occupied
Summary of loans
Collateral dependent loans	1,336
Commercial Portfolio \| Commercial real estate owner occupied \| Real Estate
Summary of loans
Collateral dependent loans	1,336
Commercial Portfolio \| Commercial real estate owner occupied \| Blanket Lien
Summary of loans
Collateral dependent loans	0
Commercial Portfolio \| Commercial real estate owner occupied \| Equipment
Summary of loans
Collateral dependent loans	0
Commercial Portfolio \| Multi-family
Summary of loans
Collateral dependent loans	1,969	10,121
Commercial Portfolio \| Multi-family \| Real Estate
Summary of loans
Collateral dependent loans	1,969	10,121
Commercial Portfolio \| Multi-family \| Blanket Lien
Summary of loans
Collateral dependent loans	0	0
Commercial Portfolio \| Multi-family \| Equipment
Summary of loans
Collateral dependent loans	$ 0	0
Commercial Portfolio \| Construction and land development
Summary of loans
Collateral dependent loans		693
Commercial Portfolio \| Construction and land development \| Real Estate
Summary of loans
Collateral dependent loans		693
Commercial Portfolio \| Construction and land development \| Blanket Lien
Summary of loans
Collateral dependent loans		0
Commercial Portfolio \| Construction and land development \| Equipment
Summary of loans
Collateral dependent loans		$ 0

LOANS - TDRs by portfolio (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
TDRs by loan portfolio (excluding PCI loans):
Accruing	$ 7,012	$ 2,901
Non-accrual	5,749	9,524
Total	12,761	12,425
Commercial Portfolio \| Commercial
TDRs by loan portfolio (excluding PCI loans):
Accruing	833	967
Non-accrual	1,422	558
Total	2,255	1,525
Commercial Portfolio \| Commercial Real Estate
TDRs by loan portfolio (excluding PCI loans):
Accruing	1,522	866
Non-accrual	3,302	4,314
Total	4,824	5,180
Commercial Portfolio \| Construction and land development
TDRs by loan portfolio (excluding PCI loans):
Accruing	37	39
Non-accrual	0	909
Total	37	948
Residential Portfolio \| Residential Real Estate Loans
TDRs by loan portfolio (excluding PCI loans):
Accruing	3,128	988
Non-accrual	784	3,705
Total	3,912	4,693
Consumer Portfolio \| Consumer
TDRs by loan portfolio (excluding PCI loans):
Accruing	98	41
Non-accrual	0	0
Total	98	41
Finance Leases Portfolio
TDRs by loan portfolio (excluding PCI loans):
Accruing	1,394	0
Non-accrual	241	38
Total	$ 1,635	$ 38

LOANS - TDRs by portfolio - restructured and subsequently defaulted (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan	Dec. 31, 2019 USD ($) loan
Troubled debt restructurings:
Number of loans \| loan	45	37	37
Pre-modification outstanding balance	$ 6,302	$ 5,164	$ 3,897
Post-modification outstanding balance	$ 5,954	$ 4,455	$ 3,140
Commercial Portfolio \| Commercial
Troubled debt restructurings:
Number of loans \| loan	16	4	1
Pre-modification outstanding balance	$ 2,294	$ 989	$ 249
Post-modification outstanding balance	$ 2,178	$ 967	$ 249
Commercial Portfolio \| Commercial Real Estate
Troubled debt restructurings:
Number of loans \| loan	3	4	3
Pre-modification outstanding balance	$ 1,639	$ 797	$ 1,924
Post-modification outstanding balance	$ 1,539	$ 383	$ 1,322
Commercial Portfolio \| Construction and land development
Troubled debt restructurings:
Number of loans \| loan	1	3	2
Pre-modification outstanding balance	$ 49	$ 1,010	$ 221
Post-modification outstanding balance	$ 0	$ 900	$ 167
Residential Portfolio \| Residential Real Estate Loans
Troubled debt restructurings:
Number of loans \| loan	10	22	25
Pre-modification outstanding balance	$ 551	$ 2,334	$ 1,422
Post-modification outstanding balance	$ 513	$ 2,172	$ 1,322
Consumer Portfolio \| Consumer
Troubled debt restructurings:
Number of loans \| loan	6	4	5
Pre-modification outstanding balance	$ 134	$ 34	$ 26
Post-modification outstanding balance	$ 89	$ 33	$ 25
Finance Leases Portfolio
Troubled debt restructurings:
Number of loans \| loan	9	0	1
Pre-modification outstanding balance	$ 1,635	$ 0	$ 55
Post-modification outstanding balance	$ 1,635	$ 0	$ 55

LOANS - Risk category (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Risk category
Total	$ 5,224,801	$ 5,103,331
Commercial Portfolio
Risk category
2021	1,139,283	864,623
2020	583,612	594,318
2019	422,700	267,384
2018	182,086	261,835
2017	155,099	268,309
Prior	419,981	453,602
Revolving Loans	558,004	674,214
Total	3,460,765	3,384,285
Commercial Portfolio \| Acceptable credit quality
Risk category
2021	1,124,410	839,483
2020	569,511	527,458
2019	358,408	225,100
2018	145,165	228,072
2017	125,419	201,919
Prior	358,892	353,773
Revolving Loans	536,151	634,529
Total	3,217,956	3,010,334
Commercial Portfolio \| Special mention
Risk category
2021	362	7,747
2020	8,868	24,964
2019	31,488	21,239
2018	12,722	8,423
2017	13,953	20,677
Prior	7,589	28,093
Revolving Loans	4,801	17,315
Total	79,783	128,458
Commercial Portfolio \| Substandard
Risk category
2021	12,815	15,973
2020	3,728	39,114
2019	21,797	19,493
2018	23,197	24,163
2017	15,218	34,161
Prior	44,169	55,622
Revolving Loans	11,277	20,688
Total	132,201	209,214
Commercial Portfolio \| Substandard – nonaccrual
Risk category
2021	231	500
2020	1,468	2,782
2019	11,007	1,552
2018	1,002	1,177
2017	509	11,552
Prior	9,167	16,114
Revolving Loans	5,775	1,682
Total	29,159	35,359
Commercial Portfolio \| Doubtful
Risk category
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Commercial Portfolio \| Not graded
Risk category
2021	1,465	920
2020	37	0
2019	0	0
2018	0	0
2017	0	0
Prior	164	0
Revolving Loans	0	0
Total	1,666	920
Commercial Portfolio \| Commercial
Risk category
2021	109,108	118,582
2020	78,500	110,100
2019	53,202	42,445
2018	28,244	39,522
2017	27,713	27,395
Prior	40,663	57,793
Revolving Loans	433,240	541,545
Total	770,670	937,382
Commercial Portfolio \| Commercial \| Acceptable credit quality
Risk category
2021	108,490	117,792
2020	78,071	107,915
2019	50,458	35,649
2018	20,045	34,753
2017	27,405	22,025
Prior	35,856	51,593
Revolving Loans	417,920	517,929
Total	738,245	887,656
Commercial Portfolio \| Commercial \| Special mention
Risk category
2021	186	244
2020	57	201
2019	198	4,897
2018	6,154	3,729
2017	2	4,968
Prior	316	881
Revolving Loans	1,517	7,721
Total	8,430	22,641
Commercial Portfolio \| Commercial \| Substandard
Risk category
2021	380	544
2020	372	1,953
2019	1,934	1,259
2018	1,868	104
2017	64	248
Prior	4,322	4,861
Revolving Loans	8,099	14,618
Total	17,039	23,587
Commercial Portfolio \| Commercial \| Substandard – nonaccrual
Risk category
2021	52	2
2020	0	31
2019	612	640
2018	177	936
2017	242	154
Prior	169	458
Revolving Loans	5,704	1,277
Total	6,956	3,498
Commercial Portfolio \| Commercial \| Doubtful
Risk category
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Commercial Portfolio \| Commercial \| Not graded
Risk category
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Commercial Portfolio \| Commercial other
Risk category
2021	264,980	418,885
2020	169,413	170,167
2019	115,715	58,372
2018	34,672	773
2017	303	398
Prior	341	677
Revolving Loans	94,094	98,921
Total	679,518	748,193
Commercial Portfolio \| Commercial other \| Acceptable credit quality
Risk category
2021	264,282	416,306
2020	167,326	157,232
2019	101,083	52,843
2018	29,981	739
2017	303	303
Prior	341	677
Revolving Loans	88,198	88,250
Total	651,514	716,350
Commercial Portfolio \| Commercial other \| Special mention
Risk category
2021	0	1,871
2020	1,929	10,691
2019	10,676	3,810
2018	3,966	31
2017	0	79
Prior	0	0
Revolving Loans	3,252	5,315
Total	19,823	21,797
Commercial Portfolio \| Commercial other \| Substandard
Risk category
2021	688	255
2020	0	260
2019	62	1,078
2018	341	3
2017	0	12
Prior	0	0
Revolving Loans	2,623	5,351
Total	3,714	6,959
Commercial Portfolio \| Commercial other \| Substandard – nonaccrual
Risk category
2021	10	0
2020	158	1,984
2019	3,894	641
2018	384	0
2017	0	4
Prior	0	0
Revolving Loans	21	5
Total	4,467	2,634
Commercial Portfolio \| Commercial other \| Doubtful
Risk category
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Commercial Portfolio \| Commercial other \| Not graded
Risk category
2021	0	453
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	453
Commercial Portfolio \| Commercial real estate non-owner occupied
Risk category
2021	447,874	179,393
2020	162,529	135,340
2019	163,715	80,580
2018	43,392	115,415
2017	70,970	131,922
Prior	211,345	219,024
Revolving Loans	5,508	9,777
Total	1,105,333	871,451
Commercial Portfolio \| Commercial real estate non-owner occupied \| Acceptable credit quality
Risk category
2021	441,483	168,788
2020	154,379	109,602
2019	134,507	63,435
2018	20,524	91,763
2017	55,207	97,293
Prior	182,465	156,958
Revolving Loans	5,258	5,248
Total	993,823	693,087
Commercial Portfolio \| Commercial real estate non-owner occupied \| Special mention
Risk category
2021	26	3,011
2020	6,341	9,107
2019	14,177	3,231
2018	2,296	483
2017	711	14,294
Prior	2,272	17,816
Revolving Loans	0	4,279
Total	25,823	52,221
Commercial Portfolio \| Commercial real estate non-owner occupied \| Substandard
Risk category
2021	6,196	7,469
2020	817	16,306
2019	8,825	13,813
2018	20,572	23,169
2017	14,857	16,897
Prior	22,344	38,907
Revolving Loans	250	250
Total	73,861	116,811
Commercial Portfolio \| Commercial real estate non-owner occupied \| Substandard – nonaccrual
Risk category
2021	169	125
2020	992	325
2019	6,206	101
2018	0	0
2017	195	3,438
Prior	4,264	5,343
Revolving Loans	0	0
Total	11,826	9,332
Commercial Portfolio \| Commercial real estate non-owner occupied \| Doubtful
Risk category
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Commercial Portfolio \| Commercial real estate non-owner occupied \| Not graded
Risk category
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Commercial Portfolio \| Commercial real estate owner occupied
Risk category
2021	145,426	75,021
2020	70,884	59,748
2019	58,313	39,889
2018	36,676	60,669
2017	44,039	70,004
Prior	112,097	113,146
Revolving Loans	2,223	4,780
Total	469,658	423,257
Commercial Portfolio \| Commercial real estate owner occupied \| Acceptable credit quality
Risk category
2021	141,084	68,688
2020	69,415	55,502
2019	47,187	38,471
2018	35,974	55,526
2017	30,583	63,105
Prior	98,442	91,986
Revolving Loans	1,886	4,066
Total	424,571	377,344
Commercial Portfolio \| Commercial real estate owner occupied \| Special mention
Risk category
2021	150	1,882
2020	24	3,578
2019	187	225
2018	161	4,142
2017	13,087	1,038
Prior	4,540	7,289
Revolving Loans	32	0
Total	18,181	18,154
Commercial Portfolio \| Commercial real estate owner occupied \| Substandard
Risk category
2021	4,192	4,078
2020	1,127	468
2019	10,810	1,023
2018	205	760
2017	297	5,861
Prior	6,466	8,430
Revolving Loans	305	314
Total	23,402	20,934
Commercial Portfolio \| Commercial real estate owner occupied \| Substandard – nonaccrual
Risk category
2021	0	373
2020	318	200
2019	129	170
2018	336	241
2017	72	0
Prior	2,649	5,441
Revolving Loans	0	400
Total	3,504	6,825
Commercial Portfolio \| Commercial real estate owner occupied \| Doubtful
Risk category
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Commercial Portfolio \| Commercial real estate owner occupied \| Not graded
Risk category
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Commercial Portfolio \| Multi-family
Risk category
2021	89,317	13,330
2020	20,531	17,866
2019	2,096	29,164
2018	25,450	32,934
2017	1,414	28,744
Prior	30,826	28,215
Revolving Loans	2,241	1,281
Total	171,875	151,534
Commercial Portfolio \| Multi-family \| Acceptable credit quality
Risk category
2021	88,329	12,865
2020	20,080	6,921
2019	1,973	19,204
2018	25,450	32,934
2017	1,414	10,674
Prior	18,642	24,375
Revolving Loans	2,241	1,281
Total	158,129	108,254
Commercial Portfolio \| Multi-family \| Special mention
Risk category
2021	0	465
2020	451	0
2019	0	8,442
2018	0	0
2017	0	0
Prior	0	1,323
Revolving Loans	0	0
Total	451	10,230
Commercial Portfolio \| Multi-family \| Substandard
Risk category
2021	988	0
2020	0	10,945
2019	0	1,518
2018	0	0
2017	0	10,266
Prior	10,139	75
Revolving Loans	0	0
Total	11,127	22,804
Commercial Portfolio \| Multi-family \| Substandard – nonaccrual
Risk category
2021	0	0
2020	0	0
2019	123	0
2018	0	0
2017	0	7,804
Prior	2,045	2,442
Revolving Loans	0	0
Total	2,168	10,246
Commercial Portfolio \| Multi-family \| Doubtful
Risk category
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Commercial Portfolio \| Multi-family \| Not graded
Risk category
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Commercial Portfolio \| Farmland
Risk category
2021	16,060	21,071
2020	15,108	8,540
2019	5,333	4,855
2018	3,623	8,968
2017	8,149	7,188
Prior	20,443	27,140
Revolving Loans	1,246	1,969
Total	69,962	79,731
Commercial Portfolio \| Farmland \| Acceptable credit quality
Risk category
2021	15,689	18,556
2020	14,966	6,846
2019	3,931	3,873
2018	3,162	8,803
2017	7,996	6,013
Prior	19,305	23,921
Revolving Loans	1,196	1,814
Total	66,245	69,826
Commercial Portfolio \| Farmland \| Special mention
Risk category
2021	0	274
2020	66	1,387
2019	1,236	180
2018	145	38
2017	153	298
Prior	240	784
Revolving Loans	0	0
Total	1,840	2,961
Commercial Portfolio \| Farmland \| Substandard
Risk category
2021	371	2,241
2020	76	307
2019	166	802
2018	211	127
2017	0	877
Prior	898	2,435
Revolving Loans	0	155
Total	1,722	6,944
Commercial Portfolio \| Farmland \| Substandard – nonaccrual
Risk category
2021	0	0
2020	0	0
2019	0	0
2018	105	0
2017	0	0
Prior	0	0
Revolving Loans	50	0
Total	155	0
Commercial Portfolio \| Farmland \| Doubtful
Risk category
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Commercial Portfolio \| Farmland \| Not graded
Risk category
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Commercial Portfolio \| Construction and land development
Risk category
2021	66,518	38,341
2020	66,647	92,557
2019	24,326	12,079
2018	10,029	3,554
2017	2,511	2,658
Prior	4,266	7,607
Revolving Loans	19,452	15,941
Total	193,749	172,737
Commercial Portfolio \| Construction and land development \| Acceptable credit quality
Risk category
2021	65,053	36,488
2020	65,274	83,440
2019	19,269	11,625
2018	10,029	3,554
2017	2,511	2,506
Prior	3,841	4,263
Revolving Loans	19,452	15,941
Total	185,429	157,817
Commercial Portfolio \| Construction and land development \| Special mention
Risk category
2021	0	0
2020	0	0
2019	5,014	454
2018	0	0
2017	0	0
Prior	221	0
Revolving Loans	0	0
Total	5,235	454
Commercial Portfolio \| Construction and land development \| Substandard
Risk category
2021	0	1,386
2020	1,336	8,875
2019	0	0
2018	0	0
2017	0	0
Prior	0	914
Revolving Loans	0	0
Total	1,336	11,175
Commercial Portfolio \| Construction and land development \| Substandard – nonaccrual
Risk category
2021	0	0
2020	0	242
2019	43	0
2018	0	0
2017	0	152
Prior	40	2,430
Revolving Loans	0	0
Total	83	2,824
Commercial Portfolio \| Construction and land development \| Doubtful
Risk category
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving Loans	0	0
Total	0	0
Commercial Portfolio \| Construction and land development \| Not graded
Risk category
2021	1,465	467
2020	37	0
2019	0	0
2018	0	0
2017	0	0
Prior	164	0
Revolving Loans	0	0
Total	1,666	467
Residential Portfolio \| Residential first lien
Risk category
2021	38,508	32,322
2020	32,028	27,267
2019	24,484	50,113
2018	31,622	100,591
2017	49,040	82,555
Prior	97,842	65,076
Revolving Loans	888	405
Total	274,412	358,329
Residential Portfolio \| Residential first lien \| Performing
Risk category
2021	38,508	32,322
2020	31,920	27,071
2019	24,311	49,039
2018	30,842	99,658
2017	48,276	81,525
Prior	93,462	58,107
Revolving Loans	888	405
Total	268,207	348,127
Residential Portfolio \| Residential first lien \| Nonperforming
Risk category
2021	0	0
2020	108	196
2019	173	1,074
2018	780	933
2017	764	1,030
Prior	4,380	6,969
Revolving Loans	0	0
Total	6,205	10,202
Residential Portfolio \| Other residential
Risk category
2021	888	975
2020	679	2,443
2019	1,530	3,302
2018	1,966	2,237
2017	1,339	1,355
Prior	1,659	1,990
Revolving Loans	55,678	72,249
Total	63,739	84,551
Residential Portfolio \| Other residential \| Performing
Risk category
2021	888	975
2020	679	2,430
2019	1,520	3,281
2018	1,950	2,091
2017	1,211	1,348
Prior	1,559	1,825
Revolving Loans	54,225	69,773
Total	62,032	81,723
Residential Portfolio \| Other residential \| Nonperforming
Risk category
2021	0	0
2020	0	13
2019	10	21
2018	16	146
2017	128	7
Prior	100	165
Revolving Loans	1,453	2,476
Total	1,707	2,828
Consumer Portfolio \| Consumer
Risk category
2021	66,004	28,480
2020	14,960	14,090
2019	7,877	16,749
2018	8,742	8,818
2017	3,049	5,131
Prior	2,653	3,897
Revolving Loans	2,723	3,477
Total	106,008	80,642
Consumer Portfolio \| Consumer \| Performing
Risk category
2021	65,915	28,449
2020	14,955	14,084
2019	7,874	16,692
2018	8,728	8,737
2017	3,025	5,067
Prior	2,582	3,834
Revolving Loans	2,721	3,476
Total	105,800	80,339
Consumer Portfolio \| Consumer \| Nonperforming
Risk category
2021	89	31
2020	5	6
2019	3	57
2018	14	81
2017	24	64
Prior	71	63
Revolving Loans	2	1
Total	208	303
Consumer Portfolio \| Consumer other
Risk category
2021	474,385	614,764
2020	323,437	117,054
2019	63,463	21,394
2018	12,635	6,514
2017	3,888	6,096
Prior	5,447	2,480
Revolving Loans	13,342	17,158
Total	896,597	785,460
Consumer Portfolio \| Consumer other \| Performing
Risk category
2021	474,385	614,764
2020	323,437	117,054
2019	63,463	21,394
2018	12,635	6,514
2017	3,888	6,096
Prior	5,447	2,480
Revolving Loans	13,341	17,158
Total	896,596	785,460
Consumer Portfolio \| Consumer other \| Nonperforming
Risk category
2021	0	0
2020	0	0
2019	0	0
2018	0	0
2017	0	0
Prior	0	0
Revolving Loans	1	0
Total	1	0
Finance Leases Portfolio
Risk category
2021	154,803	177,536
2020	125,332	125,803
2019	87,403	71,139
2018	44,548	21,647
2017	9,172	12,617
Prior	2,022	1,322
Revolving Loans	0	0
Total	423,280	410,064
Finance Leases Portfolio \| Performing
Risk category
2021	154,803	177,068
2020	124,575	125,611
2019	86,402	70,059
2018	43,536	21,047
2017	9,077	12,410
Prior	1,983	1,259
Revolving Loans	0	0
Total	420,376	407,454
Finance Leases Portfolio \| Nonperforming
Risk category
2021	0	468
2020	757	192
2019	1,001	1,080
2018	1,012	600
2017	95	207
Prior	39	63
Revolving Loans	0	0
Total	2,904	2,610
Loan Portfolios, Excluding Commercial
Risk category
2021	734,588	854,077
2020	496,436	286,657
2019	184,757	162,697
2018	99,513	139,807
2017	66,488	107,754
Prior	109,623	74,765
Revolving Loans	72,631	93,289
Total	1,764,036	1,719,046
Loan Portfolios, Excluding Commercial \| Performing
Risk category
2021	734,499	853,578
2020	495,566	286,250
2019	183,570	160,465
2018	97,691	138,047
2017	65,477	106,446
Prior	105,033	67,505
Revolving Loans	71,175	90,812
Total	1,753,011	1,703,103
Loan Portfolios, Excluding Commercial \| Nonperforming
Risk category
2021	89	499
2020	870	407
2019	1,187	2,232
2018	1,822	1,760
2017	1,011	1,308
Prior	4,590	7,260
Revolving Loans	1,456	2,477
Total	$ 11,025	$ 15,943

PREMISES AND EQUIPMENT, NET - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 116,384	$ 115,292
Accumulated depreciation	(45,592)	(41,168)
Premises and equipment, net	70,792	74,124
Land
Property, Plant and Equipment [Line Items]
Premises and equipment gross	15,696	16,158
Buildings and improvements
Property, Plant and Equipment [Line Items]
Premises and equipment gross	67,143	65,932
Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 33,545	$ 33,202

PREMISES AND EQUIPMENT, NET - Narrative (Details) ft² in Thousands, $ in Thousands	4 Months Ended	12 Months Ended
	Dec. 31, 2020 USD ($) ft² branch	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($) ft² branch	Dec. 31, 2019 USD ($) facility	Mar. 31, 2020 facility	Sep. 30, 2019 facility
Property, Plant and Equipment [Line Items]
Depreciation on premises and equipment		$ 5,506	$ 6,942	$ 6,583
Number of branches closed \| branch	13		13
Percentage of branch network closed	20.00%		20.00%
Area of vacated office space \| ft²	23		23
Impairment related to facilities optimization	$ 12,700	0	$ 12,847	$ 3,577
Number of banking facilities to be closed to Homestar \| facility					2	1
Number of banking facilities to be consolidated to Homestar banking facilities \| facility				2
Number of banking facilities to be consolidated to footprint \| facility						3
Asset impairment				$ 3,200
Assets held for sale	4,200	$ 2,300	$ 4,200
Right-of-use Assets
Property, Plant and Equipment [Line Items]
Impairment related to facilities optimization	2,400
Other
Property, Plant and Equipment [Line Items]
Impairment related to facilities optimization	$ 800

LEASES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
LEASES - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
LEASES
Operating lease right-of-use assets	$ 8,428	$ 9,177
Operating lease liabilities	$ 10,714	11,958
Lease impairment		2,400
Renewal term of lease	10 years
Net rent expense under operating leases	$ 1,400	$ 2,300	$ 2,800
Minimum
LEASES
Remaining lease terms	6 months
Maximum
LEASES
Remaining lease terms	11 years

LEASES - Information Related to Operating Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease cost	$ 2,080	$ 2,943
Operating cash flows related to leases	2,566	3,280
Right-of-use assets obtained in exchange for lease obligations	1,118	1,616
Right-of-use assets derecognized due to terminations or impairment	$ (210)	$ (4,467)
Weighted average remaining lease term	7 years 6 months 29 days	8 years 1 month 6 days
Weighted average discount rate	2.85%	2.90%

LEASES - Projected Minimum Rental Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Operating Lease Payments
2022	$ 2,180
2023	2,094
2024	1,799
2025	894
2026	763
Thereafter	4,251
Total future minimum lease payments	11,981
Less imputed interest	(1,267)
Total operating lease liabilities	$ 10,714	$ 11,958

LOAN SERVICING RIGHTS - Loan Servicing Rights and Carrying Value (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Servicing Assets at Fair Value [Line Items]
Serviced Loans	$ 3,003,192	$ 3,930,783
Carrying Value	28,865	40,154
Commercial FHA Mortgage Loans
Servicing Assets at Fair Value [Line Items]
Serviced Loans	2,650,531	3,499,258
Carrying Value	27,386	38,322
SBA servicing rights
Servicing Assets at Fair Value [Line Items]
Serviced Loans	50,043	49,223
Carrying Value	774	954
Residential mortgage loans
Servicing Assets at Fair Value [Line Items]
Serviced Loans	302,618	382,302
Carrying Value	$ 705	$ 878

LOAN SERVICING RIGHTS - Changes in MSR (Details) - Commercial FHA Mortgage Loans - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Loan servicing rights:
Balance, beginning of period	$ 38,322	$ 57,637	$ 56,252
Originated servicing	0	1,128	4,124
Amortization	(2,965)	(3,162)	(2,739)
Refinancing fee received from third party	(439)	0	0
Permanent impairment	(7,532)	(17,281)	0
Balance, end of period	27,386	38,322	57,637
Valuation allowances:
Balance, beginning of period	0	4,944	2,805
Additions	0	12,337	2,698
Reductions	0	(17,281)	(559)
Balance, end of period	0	0	4,944
Loan servicing rights, net	27,386	38,322	52,693
Fair value	$ 28,368	$ 38,322	$ 52,693	$ 53,447

LOAN SERVICING RIGHTS - Narrative (Details)	12 Months Ended
LOAN SERVICING RIGHTS - Narrative (Details)	Dec. 31, 2021	Dec. 31, 2020
Transfers and Servicing [Abstract]
Prepayment rate	8.24%	8.18%
Discount rate	11.87%	11.48%

GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($)		8 Months Ended	12 Months Ended
	Jul. 17, 2019	Aug. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Finite-lived intangible assets
Goodwill			$ 161,904,000	$ 161,904,000
Goodwill impairment loss		$ 0
Impairment of intangible assets				0	$ 0
Amortization of intangible assets			$ 5,855,000	$ 6,504,000	$ 7,090,000
ATG Trust
Finite-lived intangible assets
Other intangible assets amortized over a period	6 years
ATG Trust \| Customer relationship intangibles
Finite-lived intangible assets
Total intangible assets	$ 1,847,000
Other intangible assets amortized over a period	6 years

GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Intangible assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Carrying amount of goodwill
Goodwill	$ 161,904	$ 161,904
Finite-lived intangible assets
Gross Carrying Amount	72,930	71,083
Accumulated Amortization	(48,556)	(42,701)
Total	24,374	28,382
Core deposit intangibles
Finite-lived intangible assets
Gross Carrying Amount	57,012	57,012
Accumulated Amortization	(40,603)	(36,005)
Total	16,409	21,007
Customer relationship intangibles
Finite-lived intangible assets
Gross Carrying Amount	15,918	14,071
Accumulated Amortization	(7,953)	(6,696)
Total	7,965	7,375
Banking
Carrying amount of goodwill
Goodwill	157,158	157,158
Wealth management
Carrying amount of goodwill
Goodwill	$ 4,746	$ 4,746

GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 5,208
2023	4,433
2024	3,717
2025	2,966
2026	2,450
Thereafter	5,600
Total	$ 24,374	$ 28,382

DERIVATIVE INSTRUMENTS - Interest Rate Lock Commitments and Forward Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional Amount	$ 126,643	$ 354,353
Fair Value Gain	410	2,217
Interest rate lock commitments
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional Amount	66,216	136,227
Fair Value Gain	410	2,217
Forward commitments to sell mortgage-backed securities
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notional Amount	60,427	218,126
Notional amount, liability derivatives	18,362	33,240
Fair Value Gain	0	0
Fair value loss, liability derivatives	$ 19	$ 309

DERIVATIVE INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Derivative disclosures
Gain on termination of hedged interest rate swap	$ 2,159	$ 0	$ 0
Prepayment of FHLB advance	977,536	447,832	515,047
Notional Amount	126,643	354,353
Stockholders' equity	663,837	621,391	661,911	$ 608,525
Fees and Commissions, Mortgage Banking and Servicing and Other, Commercial and Residential
Derivative disclosures
Gain on termination of hedged interest rate swap	1,500	1,400	$ 1,100
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent
Derivative disclosures
Stockholders' equity	3,700
Other assets \| Cash Flow Hedging
Derivative disclosures
Derivative liability	5,100
Future Starting Receive Variable, Pay Fixed Interest Rate Swaps \| Cash Flow Hedging
Derivative disclosures
Notional Amount	140,000
Interest rate swap contracts
Derivative disclosures
Notional amount of interest rate swaps	7,900	8,500
Interest rate swap contracts \| Other liabilities
Derivative disclosures
Fair value of liability derivatives	400	800
Receive Fixed, Pay Variable Interest Rate Swaps \| Cash Flow Hedging
Derivative disclosures
Gain on termination of hedged interest rate swap	2,200
Prepayment of FHLB advance	$ 100,000
Notional Amount		$ 100,000
Average remaining life in years		5 years 3 months 18 days
Receive Fixed, Pay Variable Interest Rate Swaps \| Cash Flow Hedging \| Long
Derivative disclosures
Weighted average rate		0.57%
Receive Fixed, Pay Variable Interest Rate Swaps \| Cash Flow Hedging \| Short
Derivative disclosures
Weighted average rate		0.22%

DERIVATIVE INSTRUMENTS - Cash Flow Hedges (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount	$ 354,353	$ 126,643
Receive Fixed, Pay Variable Interest Rate Swaps \| Cash Flow Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount	$ 100,000
Average remaining life in years	5 years 3 months 18 days
Receive Fixed, Pay Variable Interest Rate Swaps \| Cash Flow Hedging \| Long
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Weighted average rate	0.57%
Receive Fixed, Pay Variable Interest Rate Swaps \| Cash Flow Hedging \| Short
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Weighted average rate	0.22%

DEPOSITS - Summary of Classification of Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Classification of deposits
Noninterest-bearing demand	$ 2,245,701	$ 1,469,579
Interest-bearing:
Checking	1,663,021	1,568,888
Money market	869,067	785,871
Savings	679,115	597,966
Time	653,744	678,712
Total deposits	$ 6,110,648	$ 5,101,016

DEPOSITS - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Deposits [Abstract]
Time deposits $250,000 or more	$ 143.5	$ 88.3

DEPOSITS - Scheduled Maturities of Time Deposits (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Schedule of maturities of time deposits
2022	$ 377,823
2023	134,092
2024	82,430
2025	19,778
2026	39,597
Thereafter	24
Total	$ 653,744

SHORT-TERM BORROWINGS - Summary of Short-Term Borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
Outstanding at period-end	$ 76,803	$ 68,957
Average amount outstanding	68,986	60,306
Maximum amount outstanding at any month end	$ 77,497	$ 77,136
Weighted average interest rate:
During period	0.12%	0.30%
End of period	0.13%	0.12%

SHORT-TERM BORROWINGS - Narrative (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Short-Term Borrowings
Investment securities pledged/collateralized for secured borrowings	$ 78,300,000	$ 76,500,000
Line of credit	0	0
Federal funds lines of credit	45,000,000.0
Commercial Real Estate Loans
Short-Term Borrowings
Loans pledged as collateral	64,800,000	68,100,000
Federal Reserve Discount Window
Short-Term Borrowings
Line of credit	$ 55,900,000	$ 54,400,000

- Definition

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

+ References + Details

FHLB ADVANCES AND OTHER BORROWINGS - Summary of FHLB Advances (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 310,171	$ 779,171
Midland States Bancorp, Inc \| Series G Preferred Stock
FHLB ADVANCES AND OTHER BORROWINGS
Long term debt	$ 171	$ 171
Federal Home Loan Bank Advances, Interest Rate Information
Preferred stock, shares issued (in shares)	171	171
Preferred stock, par value (in USD per share)	$ 1,000	$ 1,000
Midland States Bank \| Fixed rate, fixed term maturing through May 2021
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 0	$ 304,000
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate		0.24%
Midland States Bank \| Putable fixed rate maturing through August 2021
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 210,000	$ 475,000
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate	1.48%	2.01%
Midland States Bank \| Secured Overnight Financing Rate (SOFR) Rate
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 100,000	$ 0
Federal Home Loan Bank Advances, Interest Rate Information
FHLB advances interest rate	1.67%

FHLB ADVANCES AND OTHER BORROWINGS - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
FHLB ADVANCES AND OTHER BORROWINGS
FHLB advances, collateral for mortgage and home equity line of credit loans	$ 2,100	$ 1,860

FHLB ADVANCES AND OTHER BORROWINGS - Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract]
2022	$ 0
2023	140,000
2024	70,000
2025	0
2026	0
Thereafter	100,171
Total	$ 310,171	$ 779,171

SUBORDINATED DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2021
Subordinated Borrowing [Line Items]
Carrying amount		$ 139,091	$ 169,795
6.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Effective interest rate (as a percent)			4.59%
Fixed interest rate (as a percent)	6.00%
Face amount	$ 40,300			$ 31,100
Carrying amount		$ 0	$ 31,075
6.00% Subordinated Debt \| LIBOR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)	4.35%		4.35%
6.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Fixed interest rate (as a percent)	6.50%	6.50%
Face amount	$ 15,000	$ 550
Carrying amount		$ 546	$ 545
6.25% Subordinated Debt
Subordinated Borrowing [Line Items]
Fixed interest rate (as a percent)		6.25%
Face amount		$ 40,000
Carrying amount		$ 39,626	39,561
6.25% Subordinated Debt \| LIBOR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)		4.229%
5.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Fixed interest rate (as a percent)		5.00%
Face amount		$ 72,750
Carrying amount		$ 72,042	71,785
5.00% Subordinated Debt \| Three month SOFR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)		3.61%
5.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Fixed interest rate (as a percent)		5.50%
Face amount		$ 27,250
Carrying amount		$ 26,877	$ 26,829
5.50% Subordinated Debt \| Three month SOFR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)		4.045%

SUBORDINATED DEBT - Narrative (Details) $ in Thousands		1 Months Ended	3 Months Ended		12 Months Ended
SUBORDINATED DEBT - Narrative (Details) $ in Thousands	Sep. 20, 2019 USD ($) tranche	Jun. 30, 2015 USD ($) tranche	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020	Jun. 30, 2021 USD ($)	Oct. 13, 2017 USD ($)
Subordinated Borrowing [Line Items]
Number of tranches \| tranche	2	2
Subordinate debt
Subordinated Borrowing [Line Items]
Debt issuance costs	$ 1,600	$ 900						$ 600
6.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Face amount		$ 40,300					$ 31,100
Fixed interest rate (as a percent)		6.00%
Duration with fixed interest rate		5 years
Repurchase of debt			$ 7,300	$ 2,000
Loss on repurchase of debt issuance			$ 200	1,400
6.00% Subordinated Debt \| LIBOR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)		4.35%				4.35%
6.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Face amount		$ 15,000			$ 550
Fixed interest rate (as a percent)		6.50%			6.50%
6.25% Subordinated Debt
Subordinated Borrowing [Line Items]
Face amount					$ 40,000
Fixed interest rate (as a percent)					6.25%
Duration with fixed interest rate					5 years
6.25% Subordinated Debt \| LIBOR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)					4.229%
5.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Face amount					$ 72,750
Fixed interest rate (as a percent)					5.00%
Duration with fixed interest rate					5 years
5.00% Subordinated Debt \| Three month SOFR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)					3.61%
5.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Face amount					$ 27,250
Fixed interest rate (as a percent)					5.50%
Duration with fixed interest rate					10 years
5.50% Subordinated Debt \| Three month SOFR
Subordinated Borrowing [Line Items]
Variable interest rate (as a percent)					4.045%
Subordinated Debt40325 Maturing June182025
Subordinated Borrowing [Line Items]
Face amount				40,300
Subordinated Debt15000 Maturing June182025
Subordinated Borrowing [Line Items]
Face amount				15,000
Repurchase of debt				14,500
Loss on repurchase of debt issuance				$ 400
Private Placement \| Subordinate debt
Subordinated Borrowing [Line Items]
Face amount	$ 100,000	$ 55,300						$ 40,000

TRUST PREFERRED DEBENTURES - Summary of Trust Preferred Debentures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2014	Jun. 05, 2013	Jun. 06, 2007	Nov. 30, 2006	Apr. 30, 2004	Mar. 26, 2004	Dec. 19, 2003
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 49,374	$ 48,814
Grant Park Trust
TRUST PREFERRED DEBENTURES
Book value of subordinated debentures				$ 3,100
LSHC Trust III
TRUST PREFERRED DEBENTURES
Book value of subordinated debentures			$ 41,200
Trust preferred debentures maturing April 23, 2034
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 10,279	$ 10,276
Trust preferred debentures maturing April 23, 2034 \| Midland Trust
TRUST PREFERRED DEBENTURES
Interest rate (as a percent)	2.87%	2.96%
Face amount								$ 10,300
Trust preferred debentures maturing April 23, 2034 \| LIBOR \| Midland Trust
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	2.75%
Trust preferred debentures maturing January 23, 2034
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 2,363	$ 2,314
Trust preferred debentures maturing January 23, 2034 \| Grant Park Trust
TRUST PREFERRED DEBENTURES
Interest rate (as a percent)	2.98%	3.06%
Face amount							$ 3,093		$ 3,100
Trust preferred debentures maturing January 23, 2034 \| LIBOR \| Grant Park Trust
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	2.85%
Trust preferred debentures maturing December 31, 2036
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 14,647	$ 14,442
Trust preferred debentures maturing December 31, 2036 \| LSHC Trust III
TRUST PREFERRED DEBENTURES
Interest rate (as a percent)	1.95%	1.97%
Face amount						$ 20,600	20,619
Trust preferred debentures maturing December 31, 2036 \| LIBOR \| LSHC Trust III
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	1.75%
Trust preferred debentures maturing September 6, 2037
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 13,830	$ 13,621
Trust preferred debentures maturing September 6, 2037 \| LSHC Trust IV
TRUST PREFERRED DEBENTURES
Interest rate (as a percent)	1.65%	1.70%
Face amount					$ 20,600		20,619
Trust preferred debentures maturing September 6, 2037 \| LIBOR \| LSHC Trust IV
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	1.47%
Trust Preferred Debentures Maturing June 17, 2034
TRUST PREFERRED DEBENTURES
Trust preferred debentures	$ 8,255	$ 8,161
Trust Preferred Debentures Maturing June 17, 2034 \| Centrue Bank
TRUST PREFERRED DEBENTURES
Interest rate (as a percent)	2.87%	2.88%
Face amount							$ 10,310
Trust Preferred Debentures Maturing June 17, 2034 \| LIBOR \| Centrue Bank
TRUST PREFERRED DEBENTURES
Variable interest rate (as a percent)	2.65%

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

INCOME TAXES - Components of Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Federal:
Current	$ 10,044	$ 10,924	$ 2,318
Deferred	7,926	(3,852)	8,287
State:
Current	144	1,271	1,761
Deferred	(319)	1,134	4,321
Actual income tax expense	$ 17,795	$ 9,477	$ 16,687

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

INCOME TAXES - Statutory federal rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Expected income taxes	$ 20,814	$ 6,723	$ 15,218
Less income tax effect of:
Tax exempt interest, net	(2,499)	(2,398)	(2,568)
State tax, net of federal benefit	5,465	1,900	4,805
State tax settlement, net of federal expense	(5,614)	0	0
Equity-based compensation benefit	(93)	239	(484)
Non-deductible transaction costs	0	0	110
Disposition of nondeductible goodwill	0	2,287	0
Valuation allowance	47	10	62
Other	(325)	716	(456)
Actual income tax expense	$ 17,795	$ 9,477	$ 16,687

INCOME TAXES - Narrative (Details) - USD ($)	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Settlement of prior tax issue	$ 6,800,000
Accumulation of prior year's earnings representing tax bad debt deductions	3,100,000	$ 3,100,000
Operating Loss Carryforwards	10,113,000	11,231,000
Unrecognized tax benefits	0	0
Interest or penalties relative to unrecognized tax benefits	0	0
Valuation allowance	118,000	$ 71,000
Addition to valuation allowance	50,000.00
Federal
Operating Loss Carryforwards	43,000,000.0
State
Tax credit carryforward	1,300,000
State \| Illinois
Post-apportioned operating loss carryforward	14,000,000.0
State \| Missouri
Pre-apportioned operating loss carryforward	$ 43,000,000.0

INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets:
Allowance for credit losses on loans	$ 14,042	$ 16,622
Deferred compensation	2,177	2,152
Loans	1,835	2,772
Tax credits	1,067	1,047
Net operating losses	10,113	11,231
Fair value adjustment on investments	879	1,067
Premises and equipment	0	433
Operating lease liabilities	2,946	3,289
Other, net	3,519	3,861
Deferred tax assets	36,578	42,474
Valuation allowance	(118)	(71)
Deferred tax assets, net of valuation allowance	36,460	42,403
Liabilities:
Premises and equipment	472	0
Unrealized gain on securities	569	4,169
Mortgage servicing rights	5,958	8,315
Fair value adjustment on trust preferred debentures	4,264	4,417
Deferred loan costs, net of fees	3,444	3,632
Intangible assets	5,651	6,921
Software development costs	1,446	1,522
Leased equipment	22,297	17,910
Operating lease right-of-use assets	2,318	2,524
Other, net	3,619	1,315
Deferred tax liabilities	50,038	50,725
Deferred tax liabilities, net	$ (13,578)	$ (8,322)

RETIREMENT PLANS - Narrative (Details) - USD ($)		12 Months Ended
RETIREMENT PLANS - Narrative (Details) - USD ($)	Nov. 30, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jul. 01, 2021
Defined Contribution Plan Disclosure [Line Items]
Employer's contribution, discretionary amount		$ 0	$ 0	$ 0
Employer's matching contribution, percentage		50.00%
Employer's matching contribution, percentage of employee compensation		6.00%
Total expense recorded		$ 1,200,000	1,700,000	$ 1,700,000
Minimum
Defined Contribution Plan Disclosure [Line Items]
Employee's contribution, percentage of gross pay		1.00%
Maximum
Defined Contribution Plan Disclosure [Line Items]
Employee's contribution, percentage of gross pay		100.00%
Pension Plan
Defined Contribution Plan Disclosure [Line Items]
Funded status of the plan (market value of assets divided by funding target)					141.37%
Defined benefit plan, minimum required contribution, administrative expense		$ 100,000	$ 200,000
Assets transferred	$ 16,600,000

RETIREMENT PLANS - Plan Assets and Liabilities (Details) - Deferred compensation arrangement - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Beginning balance, trust asset	$ 3,657	$ 0	$ 0
Contributions	207	3,264	0
Gain on trust assets	359	499	0
Distributions	(509)	(106)	0
Ending balance, trust asset	3,714	3,657	0
Defined Benefit Plan, Deferred Compensation Liability [Roll Forward]
Beginning balance, deferred compensation liability	3,657	2,978	2,383
Deferred compensation	207	350	751
Expense on deferred compensation liability	359	506	8
Distributions	(509)	(177)	(164)
Ending balance, deferred compensation liability	3,714	3,657	2,978
Deferred Compensation Arrangement with Individual, Recorded Liability [Roll Forward]
Beginning balance, deferred compensation liability	4,560	5,007	4,135
Deferred compensation	606	586	679
Expense on deferred compensation liability	251	270	236
Distributions	(45)	(1,303)	(43)
Ending balance, deferred compensation liability	$ 5,372	$ 4,560	$ 5,007

SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	May 03, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation (in years)	3 years
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost that has been charged against income	$ 1,900	$ 2,200	$ 2,000
Granted during the year (in shares)	128,049	94,998
Vesting period (in years)	4 years
Total unrecognized compensation	$ 5,600
Weighted average grant date fair value for restricted stock awards	$ 25.67	$ 14.85	$ 27.67
Stock option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	0	0	0
Aggregate intrinsic value of options outstanding	$ 1,300
Aggregate intrinsic value of options exercisable	1,300
Total intrinsic value from options exercised	800	$ 200	$ 3,600
Cash received from options exercised	$ 2,200	$ 700	$ 5,900
2019 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)				1,000,000

SHARE-BASED COMPENSATION - Restricted stock awards (Details) - Restricted stock and restricted stock unit awards	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Number outstanding
Nonvested, beginning of year (in shares) \| shares	233,010
Granted during the year (in shares) \| shares	128,049
Vested during the year (in shares) \| shares	(77,319)
Forfeited during the year (in shares) \| shares	(21,922)
Nonvested, end of year (in shares) \| shares	261,818
Weighted average grant due fair value
Nonvested at December 31, 2018 (in dollars per shares) \| $ / shares	$ 22.64
Granted during the year (in dollars per shares) \| $ / shares	25.67
Vested during the year (in dollars per shares) \| $ / shares	24.60
Forfeited during the year (in dollars per shares) \| $ / shares	21.66
Nonvested at December 31, 2019 (in dollars per shares) \| $ / shares	$ 23.62

SHARE-BASED COMPENSATION - Stock option plan (Detail) - Stock option - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Number of shares
Options outstanding, beginning of year (in shares)	467,489	623,122
Options granted (in shares)	0	0	0
Options exercised (in shares)	(116,147)	(39,500)
Options forfeited (in shares)	0	(3,268)
Options expired (in shares)	(26,548)	(112,865)
Options outstanding, end of year (in shares)	324,794	467,489	623,122
Options exercisable (in shares)	324,794	463,590
Options vested and expected to vest (in shares)	324,794	467,060
Weighted average exercise price
Options outstanding, beginning of year (in dollars per share)	$ 21.40	$ 20.83
Options granted (in dollars per share)	0	0
Options exercised (in dollars per share)	19.16	17.90
Options forfeited (in dollars per share)	0	28.89
Options expired (in dollars per share)	27.07	19.26
Options outstanding, end of year (in dollars per share)	21.74	21.40	$ 20.83
Options exercisable (in dollars per share)	21.74	21.31
Options vested and expected to vest (in dollars per share)	$ 21.74	$ 21.39
Options outstanding, end of year (in years)	3 years 1 month 6 days	4 years 1 month 6 days
Options exercisable (in years)	3 years 1 month 6 days	4 years 1 month 6 days
Options vested and expected to vest (in years)	3 years 1 month 6 days	4 years 1 month 6 days

SHARE-BASED COMPENSATION - Nonvested stock option (Details) - Stock option - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Shares
Nonvested at December 31, 2019 (in shares)	3,899
Granted (in shares)	0	0	0
Vested (in shares)	(3,899)
Forfeited (in shares)	0
Nonvested at December 31, 2020 (in shares)	0	3,899
Weighted average grant date fair value
Nonvested at December 31, 2019 (in dollars per shares)	$ 4.33
Granted (in dollars per shares)	0
Vested (in dollars per shares)	4.33
Forfeited (in dollars per shares)	0
Nonvested at December 31, 2020 (in dollars per shares)	$ 0	$ 4.33

EARNINGS PER SHARE - Narrative (Details) - shares	12 Months Ended
EARNINGS PER SHARE - Narrative (Details) - shares	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Stock option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	65,033	364,272	91,097

EARNINGS PER SHARE - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Earnings Per Share [Abstract]
Net income	$ 81,317	$ 22,537	$ 55,784
Preferred dividends declared	0	0	(191)
Preferred stock, premium amortization	0	0	145
Net income available to common shareholders	81,317	22,537	55,738
Common shareholder dividends	(24,912)	(24,699)	(23,389)
Unvested restricted stock award dividends	(260)	(259)	(210)
Undistributed earnings to unvested restricted stock awards	(564)	0	(267)
Undistributed earnings to common shareholders	55,581	(2,421)	31,872
Basic
Distributed earnings to common shareholders	24,912	24,699	23,389
Undistributed earnings to common shareholders	55,581	(2,421)	31,872
Total common shareholders earnings, basic	80,493	22,278	55,261
Diluted
Distributed earnings to common shareholders	24,912	24,699	23,389
Undistributed earnings to common shareholders	55,581	(2,421)	31,872
Total common shareholders earnings, diluted	80,493	22,278	55,261
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	2	0	2
Total common shareholders earnings, diluted	$ 80,495	$ 22,278	$ 55,263
Weighted average common shares outstanding, basic (in shares)	22,481,389	23,336,881	24,288,793
Options (in shares)	65,964	9,245	204,638
Weighted average common shares outstanding, diluted (in shares)	22,547,353	23,346,126	24,493,431
Basic earnings per common share (in dollars per share)	$ 3.58	$ 0.95	$ 2.28
Diluted earnings per common share (in dollars per share)	$ 3.57	$ 0.95	$ 2.26

CAPITAL REQUIREMENTS - Narrative (Details)	Jan. 01, 2016	Dec. 31, 2021	Dec. 31, 2020
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common equity tier 1 capital (to risk-weighted assets): minimum required for adequate capital ratio		8.50%	7.00%
Minimum capital conservation buffer percentage	2.50%
Tier 1 capital to risk-weighted assets		0.0700	0.0850
Captial to risk-weighted assets		0.1050	0.1050
Tier 1 capital to adjusted average consolidated assets		0.0400	0.0400
Minimum
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common equity tier 1 capital (to risk-weighted assets): minimum required for adequate capital ratio	4.50%
Tier 1 capital to risk-weighted assets	0.060
Captial to risk-weighted assets	0.080
Tier 1 capital to adjusted average consolidated assets	0.040

CAPITAL REQUIREMENTS - Actual and Required Capital Amounts and Ratios (Details) $ in Thousands	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Capital requirements and restrictions on dividends
Total Capital (to Risk Weighted Assets): Actual Amount	$ 732,177	$ 710,417
Total Capital (to Risk Weighted Assets): Actual Ratio	0.1219	0.1324
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 630,482	$ 563,610
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio	0.1050	0.1050
Common Equity Tier 1 capital (to risk-weighted assets): Actual Amount	$ 550,195	$ 429,092
Common Equity Tier 1 capital (to risk-weighted assets): Actual Ratio	9.16%	7.99%
Common Equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Amount	$ 510,390	$ 375,740
Common equity tier 1 capital (to risk-weighted assets): minimum required for adequate capital ratio	8.50%	7.00%
Tier I Capital (to Risk Weighted Assets): Actual Amount	$ 485,244	$ 494,043
Tier I Capital (to Risk Weighted Assets): Actual Ratio	0.0808	0.0920
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 420,321	$ 456,256
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio	0.0700	0.0850
Tier I Capital (to Average Assets): Actual Amount	$ 550,195	$ 494,043
Tier I Capital (to Average Assets): Actual Ratio	0.0775	0.0750
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Amount	$ 283,941	$ 263,651
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Ratio	0.0400	0.0400
Midland States Bank
Capital requirements and restrictions on dividends
Total Capital (to Risk Weighted Assets): Actual Amount	$ 672,500	$ 631,585
Total Capital (to Risk Weighted Assets): Actual Ratio	0.1121	0.1177
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 629,911	$ 563,420
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio	0.1050	0.1050
Total Capital (to Risk Weighted Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements Amount	$ 599,915	$ 536,591
Total Capital (to Risk Weighted Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements Ratio	0.1000	0.1000
Common Equity Tier 1 capital (to risk-weighted assets): Actual Amount	$ 629,389	$ 578,681
Common Equity Tier 1 capital (to risk-weighted assets): Actual Ratio	10.49%	10.78%
Common Equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Amount	$ 509,928	$ 375,614
Common equity tier 1 capital (to risk-weighted assets): minimum required for adequate capital ratio	8.50%	7.00%
Common Equity Tier 1 capital (to risk-weighted assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements Amount	$ 479,932	$ 348,784
Common Equity Tier 1 capital (to risk-weighted assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements Ratio	8.00%	6.50%
Tier I Capital (to Risk Weighted Assets): Actual Amount	$ 629,389	$ 578,681
Tier I Capital (to Risk Weighted Assets): Actual Ratio	0.1049	0.1078
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 419,940	$ 456,102
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio	0.0700	0.0850
Tier I Capital (to Risk Weighted Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements Amount	$ 389,945	$ 429,273
Tier I Capital (to Risk Weighted Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements Ratio	0.0650	0.0800
Tier I Capital (to Average Assets): Actual Amount	$ 629,389	$ 578,681
Tier I Capital (to Average Assets): Actual Ratio	0.0889	0.0878
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Amount	$ 283,324	$ 263,537
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Ratio	0.0400	0.0400
Tier I Capital (to Average Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements Amount	$ 354,156	$ 329,421
Tier I Capital (to Average Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements Ratio	0.0500	0.0500

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring basis (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Assets and liabilities measured at fair value on a recurring basis:
Transfer of assets between level 1 to 2	$ 0	$ 0
Transfer of assets between level 2 to 1	0	0
Transfer of assets into level 3	0	0
Transfer of assets out of level 3	0	0
Assets
Investment securities available for sale:	906,603,000	676,711,000
Equity securities	9,529,000	9,424,000
Loans held for sale	32,045,000	138,090,000
Losses recognized on assets measured on non-recurring basis
Loan servicing rights	7,532,000	12,337,000	$ 2,139,000
Mortgage servicing rights held for sale	222,000	1,692,000	(490,000)
Nonperforming loans	14,468,000	24,611,000	10,259,000
Other real estate owned	454,000	1,390,000	16,000
Assets held for sale	0	10,404,000	3,577,000
Total loss on assets measured on a nonrecurring basis	22,676,000	50,434,000	$ 15,501,000
U.S. Treasury securities
Assets
Investment securities available for sale:	64,917,000
U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale:	33,817,000	35,567,000
Mortgage-backed securities - non-agency
Assets
Investment securities available for sale:	28,706,000	20,744,000
State and municipal securities
Assets
Investment securities available for sale:	143,099,000	129,765,000
Corporate securities
Assets
Investment securities available for sale:	195,794,000	146,058,000
Recurring member
Assets
Investment securities available for sale:		9,424,000
Equity securities	9,529,000	138,090,000
Loans held for sale	32,045,000
Total	954,060,000	827,648,000
Liabilities
Forward commitments to sell mortgage-backed securities	19,000	309,000
Interest rate swap contracts	378,000	803,000
Total	397,000	1,112,000
Recurring member \| U.S. Treasury securities
Assets
Investment securities available for sale:	64,917,000
Recurring member \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale:	33,817,000	35,567,000
Recurring member \| Mortgage-backed securities - agency
Assets
Investment securities available for sale:	440,270,000	344,577,000
Recurring member \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale:	28,706,000	20,744,000
Recurring member \| State and municipal securities
Assets
Investment securities available for sale:	143,099,000	129,765,000
Recurring member \| Corporate securities
Assets
Investment securities available for sale:	195,794,000	146,058,000
Recurring member \| Interest rate lock commitments
Assets
Loans held for sale		2,217,000
Derivative assets	410,000
Recurring member \| Interest rate swap contracts
Assets
Derivative assets	5,473,000	1,206,000
Recurring member \| Level 1
Assets
Investment securities available for sale:		9,424,000
Equity securities	9,529,000	0
Loans held for sale	0
Total	74,446,000	9,424,000
Liabilities
Forward commitments to sell mortgage-backed securities	0	0
Interest rate swap contracts	0	0
Total	0	0
Recurring member \| Level 1 \| U.S. Treasury securities
Assets
Investment securities available for sale:	64,917,000
Recurring member \| Level 1 \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 1 \| Mortgage-backed securities - agency
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 1 \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 1 \| State and municipal securities
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 1 \| Corporate securities
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 1 \| Interest rate lock commitments
Assets
Loans held for sale		0
Derivative assets	0
Recurring member \| Level 1 \| Interest rate swap contracts
Assets
Derivative assets	0	0
Recurring member \| Level 2
Assets
Investment securities available for sale:		0
Equity securities	0	138,090,000
Loans held for sale	32,045,000
Total	878,679,000	817,265,000
Liabilities
Forward commitments to sell mortgage-backed securities	19,000	309,000
Interest rate swap contracts	378,000	803,000
Total	397,000	1,112,000
Recurring member \| Level 2 \| U.S. Treasury securities
Assets
Investment securities available for sale:	0
Recurring member \| Level 2 \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale:	33,817,000	35,567,000
Recurring member \| Level 2 \| Mortgage-backed securities - agency
Assets
Investment securities available for sale:	440,270,000	344,577,000
Recurring member \| Level 2 \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale:	28,706,000	20,744,000
Recurring member \| Level 2 \| State and municipal securities
Assets
Investment securities available for sale:	143,099,000	129,765,000
Recurring member \| Level 2 \| Corporate securities
Assets
Investment securities available for sale:	194,859,000	145,099,000
Recurring member \| Level 2 \| Interest rate lock commitments
Assets
Loans held for sale		2,217,000
Derivative assets	410,000
Recurring member \| Level 2 \| Interest rate swap contracts
Assets
Derivative assets	5,473,000	1,206,000
Recurring member \| Level 3
Assets
Investment securities available for sale:		0
Equity securities	0	0
Loans held for sale	0
Total	935,000	959,000
Liabilities
Forward commitments to sell mortgage-backed securities	0	0
Interest rate swap contracts	0	0
Total	0	0
Recurring member \| Level 3 \| U.S. Treasury securities
Assets
Investment securities available for sale:	0
Recurring member \| Level 3 \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 3 \| Mortgage-backed securities - agency
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 3 \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 3 \| State and municipal securities
Assets
Investment securities available for sale:	0	0
Recurring member \| Level 3 \| Corporate securities
Assets
Investment securities available for sale:	935,000	959,000
Recurring member \| Level 3 \| Interest rate lock commitments
Assets
Loans held for sale		0
Derivative assets	0
Recurring member \| Level 3 \| Interest rate swap contracts
Assets
Derivative assets	0	0
Non recurring member
Assets measured at fair value on a non-recurring basis:
Loan servicing rights	28,865,000	28,865,000
Mortgage servicing rights held for sale		878,000
Nonperforming loans	36,542,000	13,333,000
Other real estate owned	12,059,000	20,247,000
Assets held for sale	2,284,000	4,157,000
Non recurring member \| Level 1
Assets measured at fair value on a non-recurring basis:
Loan servicing rights	0	0
Mortgage servicing rights held for sale		0
Nonperforming loans	24,358,000	0
Other real estate owned	0	0
Assets held for sale	0	0
Non recurring member \| Level 2
Assets measured at fair value on a non-recurring basis:
Loan servicing rights	0	0
Mortgage servicing rights held for sale		0
Nonperforming loans	6,129,000	12,054,000
Other real estate owned	12,059,000	20,247,000
Assets held for sale	2,284,000	4,157,000
Non recurring member \| Level 3
Assets measured at fair value on a non-recurring basis:
Loan servicing rights	28,865,000	39,276,000
Mortgage servicing rights held for sale		878,000
Nonperforming loans	6,055,000	1,279,000
Other real estate owned	0	0
Assets held for sale	$ 0	$ 0

FAIR VALUE OF FINANCIAL INSTRUMENTS- Unobservable inputs (Level 3) (Details) - Corporate securities - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period	$ 959	$ 955
Total realized in earnings	14	8
Total unrealized in other comprehensive income	(24)	4
Net settlements (principal and interest)	(14)	(8)
Balance, end of period	$ 935	$ 959

FAIR VALUE OF FINANCIAL INSTRUMENTS- Quantitative Information (Details) $ in Thousands	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale:	$ 906,603	$ 676,711
Recurring member
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale:		9,424
Non recurring member
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	28,865	28,865
Level 3 \| Recurring member
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale:		0
Level 3 \| Recurring member \| Net market price \| Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale:	$ 935	$ 959
Valuation technique	us-gaap:ValuationTechniqueConsensusPricingModelMember	us-gaap:ValuationTechniqueConsensusPricingModelMember
Level 3 \| Non recurring member
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	$ 28,865	$ 39,276
Level 3 \| Non recurring member \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Valuation technique for servicing asset	Discounted cash flow	Discounted cash flow
Level 3 \| Non recurring member \| SBA servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Valuation technique for servicing asset	Discounted cash flow	Discounted cash flow
Level 3 \| Non recurring member \| Residential MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Valuation technique for servicing asset	Discounted cash flow	Discounted cash flow
Level 3 \| Non recurring member \| Discounted cash flow \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	$ 28,368	$ 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	898	954
Level 3 \| Non recurring member \| Discounted cash flow \| Residential MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	$ 705	$ 878
Minimum \| Level 3 \| Net market price \| Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.000	(0.020)
Minimum \| Level 3 \| Non recurring member \| Prepayment speed \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	8.00	8.00
Minimum \| Level 3 \| Non recurring member \| Prepayment speed \| SBA servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	12.27	12.01
Minimum \| Level 3 \| Non recurring member \| Prepayment speed \| Residential MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	11.94	14.40
Minimum \| Level 3 \| Non recurring member \| Discount rate \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	10.00	10.00
Minimum \| Level 3 \| Non recurring member \| Discount rate \| SBA servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	10.00
Minimum \| Level 3 \| Non recurring member \| Discount rate \| Residential MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	9.00	9.00
Maximum \| Level 3 \| Net market price \| Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.070	0.049
Maximum \| Level 3 \| Non recurring member \| Prepayment speed \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	18.00	18.00
Maximum \| Level 3 \| Non recurring member \| Prepayment speed \| SBA servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	14.14	12.52
Maximum \| Level 3 \| Non recurring member \| Prepayment speed \| Residential MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	27.48	26.28
Maximum \| Level 3 \| Non recurring member \| Discount rate \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	27.00	27.00
Maximum \| Level 3 \| Non recurring member \| Discount rate \| SBA servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	12.00
Maximum \| Level 3 \| Non recurring member \| Discount rate \| Residential MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	11.50	11.50
Weighted average \| Level 3 \| Net market price \| Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.045	0.020
Weighted average \| Level 3 \| Non recurring member \| Prepayment speed \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.0824	8.18
Weighted average \| Level 3 \| Non recurring member \| Prepayment speed \| SBA servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	13.88	12.25
Weighted average \| Level 3 \| Non recurring member \| Prepayment speed \| Residential MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	14.94	20.34
Weighted average \| Level 3 \| Non recurring member \| Discount rate \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1187	11.48
Weighted average \| Level 3 \| Non recurring member \| Discount rate \| SBA servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	11.00	11.00
Weighted average \| Level 3 \| Non recurring member \| Discount rate \| Residential MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	10.25	10.13

FAIR VALUE OF FINANCIAL INSTRUMENTS- Fair value option and gains and losses from fair value changes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	$ 32,045	$ 138,090
Difference	584	810
Contractual principal	31,461	137,280
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	(215)	179	$ (382)
Commercial Portfolio
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	19,230	126,123
Difference	0	67
Contractual principal	19,230	126,056
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	(67)	(139)	(389)
Residential Portfolio
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	12,815	11,967
Difference	584	743
Contractual principal	12,231	11,224
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	$ (148)	$ 318	$ 7

FAIR VALUE OF FINANCIAL INSTRUMENTS- Carrying values and fair value (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets
Accrued interest receivable	$ 19,470	$ 23,545
Liabilities
Trust preferred debentures	49,374	48,814
Level 1
Assets
Cash and due from banks	673,297	337,080
Federal funds sold	7,074	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
Accrued interest payable	0	0
Level 2
Assets
Cash and due from banks	0	0
Federal funds sold	0	0
Loans, net	0	0
Accrued interest receivable	19,470	23,545
Liabilities
Deposits	6,109,077	5,108,360
Short-term borrowings	76,803	68,957
FHLB and other borrowings	317,464	807,493
Subordinated debt	148,386	176,504
Trust preferred debentures	57,827	50,165
Accrued interest payable	2,848	4,441
Level 3
Assets
Cash and due from banks	0	0
Federal funds sold	0	0
Loans, net	5,221,886	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
Accrued interest payable	0	0
Carrying Amount
Assets
Cash and due from banks	673,297	337,080
Federal funds sold	7,074	4,560
Loans, net	5,173,739	5,042,888
Accrued interest receivable	19,470	23,545
Liabilities
Deposits	6,110,648	5,101,016
Short-term borrowings	76,803	68,957
FHLB and other borrowings	310,171	779,171
Subordinated debt	139,091	169,795
Trust preferred debentures	49,374	48,814
Accrued interest payable	2,848	4,441
Fair Value
Assets
Cash and due from banks	673,297	337,080
Federal funds sold	7,074	4,560
Loans, net	5,221,886	5,006,223
Accrued interest receivable	19,470	23,545
Liabilities
Deposits	6,109,077	5,108,360
Short-term borrowings	76,803	68,957
FHLB and other borrowings	317,464	807,493
Subordinated debt	148,386	176,504
Trust preferred debentures	57,827	50,165
Accrued interest payable	$ 2,848	$ 4,441

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Anticipated material loss	$ 0
Losses as a result of make whole requests and loan repurchases	0	$ 0	$ 0
Liability for unresolved repurchase demands	200,000	200,000
Commitments to extend credit
Loan commitments	994,709,000	894,212,000
Financial guarantees – standby letters of credit
Loan commitments	$ 14,325,000	$ 15,889,000

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Net interest income (expense)	$ 207,675	$ 199,136	$ 189,815
Provision for credit losses	3,393	44,361	16,985
Noninterest income	69,899	61,249	75,282
Noninterest expense	175,069	184,010	175,641
Income before income taxes	99,112	32,014	72,471
Income taxes (benefit)	17,795	9,477	16,687
Net income (loss)	81,317	22,537	55,784
Total assets	7,443,805	6,868,540	6,087,017
Banking
Segment Reporting Information [Line Items]
Net interest income (expense)	218,309	211,120	201,534
Provision for credit losses	3,393	44,361	16,985
Noninterest income	42,249	38,706	53,683
Noninterest expense	158,803	170,025	160,364
Income before income taxes	98,362	35,440	77,868
Income taxes (benefit)	17,218	10,020	18,195
Net income (loss)	81,144	25,420	59,673
Total assets	7,460,114	6,983,254	6,085,441
Wealth management
Segment Reporting Information [Line Items]
Net interest income (expense)	0	0	0
Provision for credit losses	0	0	0
Noninterest income	26,876	22,802	21,832
Noninterest expense	17,372	14,938	14,850
Income before income taxes	9,504	7,864	6,982
Income taxes (benefit)	2,679	2,194	1,850
Net income (loss)	6,825	5,670	5,132
Total assets	28,883	29,069	27,521
Other
Segment Reporting Information [Line Items]
Net interest income (expense)	(10,634)	(11,984)	(11,719)
Provision for credit losses	0	0	0
Noninterest income	774	(259)	(233)
Noninterest expense	(1,106)	(953)	427
Income before income taxes	(8,754)	(11,290)	(12,379)
Income taxes (benefit)	(2,102)	(2,737)	(3,358)
Net income (loss)	(6,652)	(8,553)	(9,021)
Total assets	$ (45,192)	$ (143,783)	$ (25,945)

REVENUE FROM CONTRACT WITH CUSTOMERS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Noninterest income - out-of-scope of Topic 606	$ 14,879	$ 13,036
Total noninterest income	69,899	61,249	$ 75,282
Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - out-of-scope of Topic 606			25,450
Total noninterest income			75,282
Trust management/administration fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	20,954	16,953
Trust management/administration fees \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606			16,114
Investment advisory fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	1,282	2,009
Investment advisory fees \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606			2,171
Investment brokerage fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	2,050	1,465
Investment brokerage fees \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606			1,165
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	2,525	2,375
Other \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606			2,382
Nonsufficient fund fees
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	5,339	5,589
Nonsufficient fund fees \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606			7,721
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	3,009	3,014
Other \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606			3,306
Interchange revenues
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	14,500	12,266
Interchange revenues \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606			11,992
Merchant services revenue
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	1,511	1,381
Merchant services revenue \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606			1,506
Other
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606	$ 3,850	$ 3,161
Other \| Calculated under Revenue Guidance in Effect before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - in-scope of Topic 606			$ 3,475

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Assets
Other assets	$ 130,907	$ 99,654
Total assets	7,443,805	6,868,540	$ 6,087,017
Liabilities:
Subordinated debt	139,091	169,795
Trust preferred debentures	49,374	48,814
Other liabilities	83,167	67,438
Total liabilities	6,779,968	6,247,149
Stockholders' equity	663,837	621,391	$ 661,911	$ 608,525
Total liabilities and shareholders’ equity	7,443,805	6,868,540
Midland States Bancorp, Inc
Assets
Cash	37,876	58,904
Investment in common stock of subsidiaries	809,143	772,758
Other assets	8,094	11,317
Total assets	855,113	842,979
Liabilities:
Subordinated debt	139,091	169,795
Trust preferred debentures	49,374	48,814
Other borrowings	171	171
Other liabilities	2,640	2,808
Total liabilities	191,276	221,588
Stockholders' equity	663,837	621,391
Total liabilities and shareholders’ equity	$ 855,113	$ 842,979

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Condensed Statements of Income
Interest expense	$ 30,142	$ 45,752	$ 59,703
Income before income taxes	99,112	32,014	72,471
Income tax benefit	(17,795)	(9,477)	(16,687)
Net income	81,317	22,537	55,784
Midland States Bancorp, Inc
Condensed Statements of Income
Dividends from subsidiaries	45,350	89,890	43,900
Other income	932	0	0
Interest expense	10,668	12,054	11,798
Other expense	984	1,309	2,753
Income before income taxes	34,630	76,527	29,349
Income tax benefit	2,105	2,749	3,371
Income before equity in undistributed income (loss) of subsidiaries	36,735	79,276	32,720
Equity in undistributed income (loss) of subsidiaries	44,582	(56,739)	23,064
Net income	$ 81,317	$ 22,537	$ 55,784

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income	$ 81,317	$ 22,537	$ 55,784
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense	1,938	2,175	2,364
Change in other assets	(31,974)	(30,269)	(5,191)
Change in other liabilities	24,626	4,750	13,202
Net cash provided by operating activities	334,438	499,147	538,653
Cash flows from investing activities:
Net cash used in investing activities	(478,495)	(1,312,433)	(364,788)
Cash flows from financing activities:
Proceeds from issuance of subordinated debt, net of issuance costs	0	0	98,265
Payments made on subordinated debt	(31,075)	(7,443)	(19,543)
Subordinated debt prepayment fees	0	193	1,778
Common stock repurchased	(11,692)	(39,615)	(4,019)
Redemption of preferred stock	0	(10)	(2,636)
Cash dividends paid on common stock	(25,172)	(24,958)	(23,599)
Cash dividends paid on preferred stock	0	0	(191)
Proceeds from issuance of common stock under employee benefit plans	2,249	2,524	5,794
Net cash provided by financing activities	482,788	760,421	6,940
Net increase (decrease) in cash and cash equivalents	338,731	(52,865)	180,805
Cash and cash equivalents:
Beginning of period	341,640
End of period	680,371	341,640
Midland States Bancorp, Inc
Cash flows from operating activities:
Net income	81,317	22,537	55,784
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed (income) loss of subsidiaries	(44,582)	56,739	(23,064)
Share-based compensation expense	1,938	2,175	2,364
Change in other assets	3,223	(6,382)	(2,604)
Change in other liabilities	763	471	1,528
Net cash provided by operating activities	42,659	75,540	34,008
Cash flows from investing activities:
Net cash paid in acquisition	0	0	(1,021)
Net cash received in dissolution of subsidiary	2,003	0	0
Net cash used in investing activities	2,003	0	(1,021)
Cash flows from financing activities:
Proceeds from issuance of subordinated debt, net of issuance costs	0	0	98,265
Payments made on subordinated debt	(31,075)	(7,443)	(19,543)
Payments made on other borrowings	0	0	(56,475)
Common stock repurchased	(11,692)	(39,615)	(4,019)
Cash dividends paid on common stock	(25,172)	(24,958)	(23,599)
Cash dividends paid on preferred stock	0	0	(191)
Proceeds from issuance of common stock under employee benefit plans	2,249	2,524	5,794
Net cash provided by financing activities	(65,690)	(69,309)	(626)
Net increase (decrease) in cash and cash equivalents	(21,028)	6,231	32,361
Cash and cash equivalents:
Beginning of period	58,904	52,673	20,312
End of period	37,876	58,904	52,673
Midland States Bancorp, Inc \| Series G Preferred Stock
Cash flows from financing activities:
Redemption of preferred stock	0	(10)	0
Midland States Bancorp, Inc \| Series H preferred stock
Cash flows from financing activities:
Redemption of preferred stock	$ 0	$ 0	$ (2,636)

SUBSEQUENT EVENTS (Details) - FNBC - Subsequent Event $ in Millions	Jan. 25, 2022 USD ($)
Deposits
Subsequent Event [Line Items]
Fair value of assets acquired	$ 86.0
Loans
Subsequent Event [Line Items]
Fair value of assets acquired	$ 26.0

LOANS - Aging Status of recorded investment (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Aging Status of Recorded Investment
Nonaccrual loans	$ 35,563	$ 49,628
Total	5,224,801	5,103,331
Nonperforming
Aging Status of Recorded Investment
Nonaccrual loans	35,563	49,628
30-59 days past due \| Performing
Aging Status of Recorded Investment
Total	10,069	23,714
60-89 days past due \| Performing
Aging Status of Recorded Investment
Total	7,445	7,746
Past due 90 days or more \| Performing
Aging Status of Recorded Investment
Total	6	1,541
Total past due loans \| Performing
Aging Status of Recorded Investment
Total	17,520	33,001
Current loans \| Performing
Aging Status of Recorded Investment
Total	5,171,718	5,020,702
Commercial Portfolio
Aging Status of Recorded Investment
Nonaccrual loans	29,159	35,359
Total	3,460,765	3,384,285
Commercial Portfolio \| Nonperforming
Aging Status of Recorded Investment
Nonaccrual loans	29,159	35,359
Commercial Portfolio \| 30-59 days past due \| Performing
Aging Status of Recorded Investment
Total	3,697	14,149
Commercial Portfolio \| 60-89 days past due \| Performing
Aging Status of Recorded Investment
Total	4,386	3,928
Commercial Portfolio \| Past due 90 days or more \| Performing
Aging Status of Recorded Investment
Total	5	896
Commercial Portfolio \| Total past due loans \| Performing
Aging Status of Recorded Investment
Total	8,088	18,973
Commercial Portfolio \| Current loans \| Performing
Aging Status of Recorded Investment
Total	3,423,518	3,329,953
Commercial Portfolio \| Commercial
Aging Status of Recorded Investment
Nonaccrual loans	6,956	3,498
Total	770,670	937,382
Commercial Portfolio \| Commercial \| Nonperforming
Aging Status of Recorded Investment
Nonaccrual loans	6,956	3,498
Commercial Portfolio \| Commercial \| 30-59 days past due \| Performing
Aging Status of Recorded Investment
Total	283	389
Commercial Portfolio \| Commercial \| 60-89 days past due \| Performing
Aging Status of Recorded Investment
Total	1,082	27
Commercial Portfolio \| Commercial \| Past due 90 days or more \| Performing
Aging Status of Recorded Investment
Total	0	0
Commercial Portfolio \| Commercial \| Total past due loans \| Performing
Aging Status of Recorded Investment
Total	1,365	416
Commercial Portfolio \| Commercial \| Current loans \| Performing
Aging Status of Recorded Investment
Total	762,349	933,468
Commercial Portfolio \| Commercial other
Aging Status of Recorded Investment
Nonaccrual loans	4,467	2,634
Total	679,518	748,193
Commercial Portfolio \| Commercial other \| Nonperforming
Aging Status of Recorded Investment
Nonaccrual loans	4,467	2,634
Commercial Portfolio \| Commercial other \| 30-59 days past due \| Performing
Aging Status of Recorded Investment
Total	2,402	4,007
Commercial Portfolio \| Commercial other \| 60-89 days past due \| Performing
Aging Status of Recorded Investment
Total	2,110	3,901
Commercial Portfolio \| Commercial other \| Past due 90 days or more \| Performing
Aging Status of Recorded Investment
Total	5	896
Commercial Portfolio \| Commercial other \| Total past due loans \| Performing
Aging Status of Recorded Investment
Total	4,517	8,804
Commercial Portfolio \| Commercial other \| Current loans \| Performing
Aging Status of Recorded Investment
Total	670,534	736,755
Commercial Portfolio \| Commercial real estate non-owner occupied
Aging Status of Recorded Investment
Nonaccrual loans	11,826	9,332
Total	1,105,333	871,451
Commercial Portfolio \| Commercial real estate non-owner occupied \| Nonperforming
Aging Status of Recorded Investment
Nonaccrual loans	11,826	9,332
Commercial Portfolio \| Commercial real estate non-owner occupied \| 30-59 days past due \| Performing
Aging Status of Recorded Investment
Total	585	6,684
Commercial Portfolio \| Commercial real estate non-owner occupied \| 60-89 days past due \| Performing
Aging Status of Recorded Investment
Total	243	0
Commercial Portfolio \| Commercial real estate non-owner occupied \| Past due 90 days or more \| Performing
Aging Status of Recorded Investment
Total	0	0
Commercial Portfolio \| Commercial real estate non-owner occupied \| Total past due loans \| Performing
Aging Status of Recorded Investment
Total	828	6,684
Commercial Portfolio \| Commercial real estate non-owner occupied \| Current loans \| Performing
Aging Status of Recorded Investment
Total	1,092,679	855,435
Commercial Portfolio \| Commercial real estate owner occupied
Aging Status of Recorded Investment
Nonaccrual loans	3,504	6,825
Total	469,658	423,257
Commercial Portfolio \| Commercial real estate owner occupied \| Nonperforming
Aging Status of Recorded Investment
Nonaccrual loans	3,504	6,825
Commercial Portfolio \| Commercial real estate owner occupied \| 30-59 days past due \| Performing
Aging Status of Recorded Investment
Total	232	2,145
Commercial Portfolio \| Commercial real estate owner occupied \| 60-89 days past due \| Performing
Aging Status of Recorded Investment
Total	730	0
Commercial Portfolio \| Commercial real estate owner occupied \| Past due 90 days or more \| Performing
Aging Status of Recorded Investment
Total	0	0
Commercial Portfolio \| Commercial real estate owner occupied \| Total past due loans \| Performing
Aging Status of Recorded Investment
Total	962	2,145
Commercial Portfolio \| Commercial real estate owner occupied \| Current loans \| Performing
Aging Status of Recorded Investment
Total	465,192	414,287
Commercial Portfolio \| Multi-family
Aging Status of Recorded Investment
Nonaccrual loans	2,168	10,246
Total	171,875	151,534
Commercial Portfolio \| Multi-family \| Nonperforming
Aging Status of Recorded Investment
Nonaccrual loans	2,168	10,246
Commercial Portfolio \| Multi-family \| 30-59 days past due \| Performing
Aging Status of Recorded Investment
Total	0	61
Commercial Portfolio \| Multi-family \| 60-89 days past due \| Performing
Aging Status of Recorded Investment
Total	0	0
Commercial Portfolio \| Multi-family \| Past due 90 days or more \| Performing
Aging Status of Recorded Investment
Total	0	0
Commercial Portfolio \| Multi-family \| Total past due loans \| Performing
Aging Status of Recorded Investment
Total	0	61
Commercial Portfolio \| Multi-family \| Current loans \| Performing
Aging Status of Recorded Investment
Total	169,707	141,227
Commercial Portfolio \| Farmland
Aging Status of Recorded Investment
Nonaccrual loans	155	0
Total	69,962	79,731
Commercial Portfolio \| Farmland \| Nonperforming
Aging Status of Recorded Investment
Nonaccrual loans	155	0
Commercial Portfolio \| Farmland \| 30-59 days past due \| Performing
Aging Status of Recorded Investment
Total	0	0
Commercial Portfolio \| Farmland \| 60-89 days past due \| Performing
Aging Status of Recorded Investment
Total	26	0
Commercial Portfolio \| Farmland \| Past due 90 days or more \| Performing
Aging Status of Recorded Investment
Total	0	0
Commercial Portfolio \| Farmland \| Total past due loans \| Performing
Aging Status of Recorded Investment
Total	26	0
Commercial Portfolio \| Farmland \| Current loans \| Performing
Aging Status of Recorded Investment
Total	69,781	79,731
Commercial Portfolio \| Construction and land development
Aging Status of Recorded Investment
Nonaccrual loans	83	2,824
Total	193,749	172,737
Commercial Portfolio \| Construction and land development \| Nonperforming
Aging Status of Recorded Investment
Nonaccrual loans	83	2,824
Commercial Portfolio \| Construction and land development \| 30-59 days past due \| Performing
Aging Status of Recorded Investment
Total	195	863
Commercial Portfolio \| Construction and land development \| 60-89 days past due \| Performing
Aging Status of Recorded Investment
Total	195	0
Commercial Portfolio \| Construction and land development \| Past due 90 days or more \| Performing
Aging Status of Recorded Investment
Total	0	0
Commercial Portfolio \| Construction and land development \| Total past due loans \| Performing
Aging Status of Recorded Investment
Total	390	863
Commercial Portfolio \| Construction and land development \| Current loans \| Performing
Aging Status of Recorded Investment
Total	193,276	169,050
Residential Portfolio \| Residential first lien
Aging Status of Recorded Investment
Nonaccrual loans	3,948	9,605
Total	274,412	358,329
Residential Portfolio \| Residential first lien \| Performing
Aging Status of Recorded Investment
Total	268,207	348,127
Residential Portfolio \| Residential first lien \| Nonperforming
Aging Status of Recorded Investment
Nonaccrual loans	3,948	9,605
Total	6,205	10,202
Residential Portfolio \| Residential first lien \| 30-59 days past due \| Performing
Aging Status of Recorded Investment
Total	113	127
Residential Portfolio \| Residential first lien \| 60-89 days past due \| Performing
Aging Status of Recorded Investment
Total	285	207
Residential Portfolio \| Residential first lien \| Past due 90 days or more \| Performing
Aging Status of Recorded Investment
Total	0	0
Residential Portfolio \| Residential first lien \| Total past due loans \| Performing
Aging Status of Recorded Investment
Total	398	334
Residential Portfolio \| Residential first lien \| Current loans \| Performing
Aging Status of Recorded Investment
Total	270,066	348,390
Residential Portfolio \| Other residential
Aging Status of Recorded Investment
Nonaccrual loans	836	2,437
Total	63,739	84,551
Residential Portfolio \| Other residential \| Performing
Aging Status of Recorded Investment
Total	62,032	81,723
Residential Portfolio \| Other residential \| Nonperforming
Aging Status of Recorded Investment
Nonaccrual loans	836	2,437
Total	1,707	2,828
Residential Portfolio \| Other residential \| 30-59 days past due \| Performing
Aging Status of Recorded Investment
Total	456	240
Residential Portfolio \| Other residential \| 60-89 days past due \| Performing
Aging Status of Recorded Investment
Total	151	135
Residential Portfolio \| Other residential \| Past due 90 days or more \| Performing
Aging Status of Recorded Investment
Total	0	0
Residential Portfolio \| Other residential \| Total past due loans \| Performing
Aging Status of Recorded Investment
Total	607	375
Residential Portfolio \| Other residential \| Current loans \| Performing
Aging Status of Recorded Investment
Total	62,296	81,739
Consumer Portfolio \| Consumer
Aging Status of Recorded Investment
Nonaccrual loans	110	262
Total	106,008	80,642
Consumer Portfolio \| Consumer \| Performing
Aging Status of Recorded Investment
Total	105,800	80,339
Consumer Portfolio \| Consumer \| Nonperforming
Aging Status of Recorded Investment
Nonaccrual loans	110	262
Total	208	303
Consumer Portfolio \| Consumer \| 30-59 days past due \| Performing
Aging Status of Recorded Investment
Total	127	325
Consumer Portfolio \| Consumer \| 60-89 days past due \| Performing
Aging Status of Recorded Investment
Total	20	57
Consumer Portfolio \| Consumer \| Past due 90 days or more \| Performing
Aging Status of Recorded Investment
Total	0	0
Consumer Portfolio \| Consumer \| Total past due loans \| Performing
Aging Status of Recorded Investment
Total	147	382
Consumer Portfolio \| Consumer \| Current loans \| Performing
Aging Status of Recorded Investment
Total	105,751	79,998
Consumer Portfolio \| Consumer other
Aging Status of Recorded Investment
Total	896,597	785,460
Consumer Portfolio \| Consumer other \| Performing
Aging Status of Recorded Investment
Total	896,596	785,460
Consumer Portfolio \| Consumer other \| Nonperforming
Aging Status of Recorded Investment
Nonaccrual loans	0	0
Total	1	0
Consumer Portfolio \| Consumer other \| 30-59 days past due \| Performing
Aging Status of Recorded Investment
Total	4,423	4,334
Consumer Portfolio \| Consumer other \| 60-89 days past due \| Performing
Aging Status of Recorded Investment
Total	2,358	2,874
Consumer Portfolio \| Consumer other \| Past due 90 days or more \| Performing
Aging Status of Recorded Investment
Total	1	0
Consumer Portfolio \| Consumer other \| Total past due loans \| Performing
Aging Status of Recorded Investment
Total	6,782	7,208
Consumer Portfolio \| Consumer other \| Current loans \| Performing
Aging Status of Recorded Investment
Total	889,815	778,252
Finance Leases Portfolio
Aging Status of Recorded Investment
Nonaccrual loans	1,510	1,965
Total	423,280	410,064
Finance Leases Portfolio \| Performing
Aging Status of Recorded Investment
Total	420,376	407,454
Finance Leases Portfolio \| Nonperforming
Aging Status of Recorded Investment
Nonaccrual loans	1,510	1,965
Total	2,904	2,610
Finance Leases Portfolio \| 30-59 days past due \| Performing
Aging Status of Recorded Investment
Total	1,253	4,539
Finance Leases Portfolio \| 60-89 days past due \| Performing
Aging Status of Recorded Investment
Total	245	545
Finance Leases Portfolio \| Past due 90 days or more \| Performing
Aging Status of Recorded Investment
Total	0	645
Finance Leases Portfolio \| Total past due loans \| Performing
Aging Status of Recorded Investment
Total	1,498	5,729
Finance Leases Portfolio \| Current loans \| Performing
Aging Status of Recorded Investment
Total	$ 420,272	$ 402,370