0001466026-22-000007 | 10-Q | XBRL Viewer | Midland States Bancorp INC

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Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2022	Apr. 22, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-35272
Entity Registrant Name	MIDLAND STATES BANCORP, INC.
Entity Incorporation, State or Country Code	IL
Entity Tax Identification Number	37-1233196
Entity Address, Address Line One	1201 Network Centre Drive
Entity Address, City or Town	Effingham
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	62401
City Area Code	217
Local Phone Number	342-7321
Title of 12(b) Security	Common stock, $0.01 par value
Trading Symbol	MSBI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		22,055,135
Entity Central Index Key	0001466026
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Assets
Cash and due from banks	$ 326,086	$ 673,297
Federal funds sold	6,178	7,074
Cash and cash equivalents	332,264	680,371
Investment securities available for sale, at fair value (allowance for credit losses of $0 and $221 at March 31, 2022 and December 31, 2021, respectively)	849,074	906,603
Equity securities, at fair value	9,172	9,529
Loans	5,539,961	5,224,801
Allowance for credit losses on loans	(52,938)	(51,062)
Total loans, net	5,487,023	5,173,739
Loans held for sale	8,931	32,045
Premises and equipment, net	69,746	70,792
Operating lease right-of-use asset	8,111	8,428
Other real estate owned	11,537	12,059
Nonmarketable equity securities	36,451	36,341
Accrued interest receivable	19,831	19,470
Loan servicing rights, at lower of cost or fair value	27,484	28,865
Goodwill	161,904	161,904
Other intangible assets, net	22,976	24,374
Cash surrender value of life insurance policies	148,060	148,378
Other assets	146,151	130,907
Total assets	7,338,715	7,443,805
Deposits:
Noninterest-bearing	1,965,032	2,245,701
Interest-bearing	4,092,507	3,864,947
Total deposits	6,057,539	6,110,648
Short-term borrowings	60,352	76,803
FHLB advances and other borrowings	310,171	310,171
Subordinated debt	139,184	139,091
Trust preferred debentures	49,524	49,374
Operating lease liabilities	10,258	10,714
Other liabilities	66,701	83,167
Total liabilities	6,693,729	6,779,968
Shareholders’ Equity:
Common stock, $0.01 par value; 40,000,000 shares authorized; 22,044,626 and 22,050,537 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively	220	221
Capital surplus	446,044	445,907
Retained earnings	226,757	212,472
Accumulated other comprehensive (loss) income	(28,035)	5,237
Total shareholders’ equity	644,986	663,837
Total liabilities and shareholders’ equity	$ 7,338,715	$ 7,443,805

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Investment securities, available-for-sale, allowance for credit loss	$ 0	$ 221
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	22,044,626	22,050,537
Common stock, shares outstanding (in shares)	22,044,626	22,050,537

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Interest income:
Loans: Taxable	$ 56,586	$ 54,554
Loans: Tax exempt	548	670
Loans held for sale	220	442
Investment securities:
Taxable	3,897	3,280
Tax exempt	842	781
Nonmarketable equity securities	484	680
Federal funds sold and cash investments	171	96
Total interest income	62,748	60,503
Interest expense:
Deposits	2,161	3,183
Short-term borrowings	23	24
FHLB advances and other borrowings	1,212	2,570
Subordinated debt	2,011	2,367
Trust preferred debentures	514	491
Total interest expense	5,921	8,635
Net interest income	56,827	51,868
Provision for credit losses on loans	4,132	3,950
Provision for credit losses on unfunded commitments	256	(535)
(Recapture of) provision for other credit losses	(221)	150
Total provision for credit losses	4,167	3,565
Net interest income after provision for credit losses	52,660	48,303
Noninterest income:
Wealth management revenue	7,139	5,931
Residential mortgage banking revenue	599	1,574
Service charges on deposit accounts	2,068	1,826
Interchange revenue	3,280	3,375
Impairment on commercial mortgage servicing rights	(394)	(1,275)
Company-owned life insurance	1,019	860
Other income	1,902	2,525
Total noninterest income	15,613	14,816
Noninterest expense:
Salaries and employee benefits	21,870	20,528
Occupancy and equipment	3,755	3,940
Data processing	5,873	5,993
Professional	1,972	2,185
Marketing	688	477
Communications	712	822
Amortization of intangible assets	1,398	1,515
Other expense	4,616	3,619
Total noninterest expense	40,884	39,079
Income before income taxes	27,389	24,040
Income taxes	6,640	5,502
Net income	$ 20,749	$ 18,538
Per common share data:
Basic earnings per common share (in dollars per share)	$ 0.92	$ 0.81
Diluted earnings per common share (in dollars per share)	$ 0.92	$ 0.81
Weighted average common shares outstanding (in shares)	22,274,884	22,522,983
Weighted average diluted common shares outstanding (in shares)	22,350,307	22,578,553

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 20,749	$ 18,538
Investment securities available for sale:
Unrealized losses that occurred during the period	(50,776)	(6,741)
(Recapture of) provision for credit loss expense	(221)	150
Income tax effect	14,024	1,813
Change in investment securities available for sale, net of tax	(36,973)	(4,778)
Cash flow hedges:
Net unrealized derivative gains on cash flow hedges	5,105	8,262
Reclassification adjustment for gains realized in net income	0	(314)
Income tax effect	(1,404)	(2,186)
Change in cash flow hedges, net of tax	3,701	5,762
Other comprehensive (loss) income, net of tax	(33,272)	984
Total comprehensive (loss) income	$ (12,523)	$ 19,522

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common stock	Capital surplus	Retained earnings	Accumulated other comprehensive income (loss)
Beginning Balance at Dec. 31, 2020	$ 621,391	$ 223	$ 453,410	$ 156,327	$ 11,431
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	18,538			18,538
Other comprehensive income	984				984
Common dividends declared	(6,301)			(6,301)
Common stock repurchased	(1,208)	(1)	(1,207)
Share-based compensation expense	502		502
Issuance of common stock under employee benefit plans	1,561	2	1,559
Ending Balance at Mar. 31, 2021	635,467	224	454,264	168,564	12,415
Beginning Balance at Dec. 31, 2021	663,837	221	445,907	212,472	5,237
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	20,749			20,749
Other comprehensive income	(33,272)				(33,272)
Common dividends declared	(6,464)			(6,464)
Common stock repurchased	(1,109)	(1)	(1,108)
Share-based compensation expense	527		527
Issuance of common stock under employee benefit plans	718		718
Ending Balance at Mar. 31, 2022	$ 644,986	$ 220	$ 446,044	$ 226,757	$ (28,035)

- Definition

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

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- Definition

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

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]
Common dividend declared, per share (in dollars per share)	$ 0.29	$ 0.28

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 20,749	$ 18,538
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	4,167	3,565
Depreciation on premises and equipment	1,255	1,436
Amortization of intangible assets	1,398	1,515
Amortization of operating lease right-of-use asset	439	407
Amortization of loan servicing rights	771	858
Share-based compensation expense	527	502
Increase in cash surrender value of life insurance	(831)	(860)
Gain on proceeds from company-owned life insurance	(188)	0
Investment securities amortization, net	852	1,067
(Gain) loss on sales of other real estate owned	(42)	9
Impairment on other real estate owned	337	104
Origination of loans held for sale	(79,601)	(199,721)
Proceeds from sales of loans held for sale	103,133	332,685
Gain on loans sold and held for sale	(484)	(1,234)
Impairment on commercial mortgage servicing rights	394	1,275
Net change in operating assets and liabilities:
Accrued interest receivable	(361)	(1,134)
Other assets	(14,228)	(6,986)
Accrued expenses and other liabilities	790	6,349
Net cash provided by operating activities	39,077	158,375
Cash flows from investing activities:
Purchases of investment securities available for sale	(15,873)	(56,983)
Maturities and payments on investment securities available for sale	21,773	56,870
Purchases of equity securities	(312)	(154)
Net (increase) decrease in loans	(317,486)	142,019
Purchases of premises and equipment	(414)	(574)
Proceeds from sale of premises and equipment	0	75
Purchases of nonmarketable equity securities	(109)	0
Proceeds from sales of nonmarketable equity securities	0	3,500
Proceeds from sales of other real estate owned	315	131
Proceeds from settlements of company-owned life insurance	1,337	0
Net cash (used in) provided by investing activities	(310,769)	144,884
Cash flows from financing activities:
Net (decrease) increase in deposits	(53,109)	239,497
Net (decrease) increase in short-term borrowings	(16,451)	2,771
Proceeds from FHLB borrowings	50,000	250,000
Payments made on FHLB borrowings and other borrowings	(50,000)	(500,008)
FHLB advances prepayment fees	0	8
Cash dividends paid on common stock	(6,464)	(6,301)
Common stock repurchased	(1,109)	(1,208)
Proceeds from issuance of common stock under employee benefit plans	718	1,561
Net cash used in financing activities	(76,415)	(13,680)
Net (decrease) increase in cash and cash equivalents	(348,107)	289,579
Cash and cash equivalents:
Beginning of period	680,371	341,640
End of period	332,264	631,219
Cash payments for:
Interest paid on deposits and borrowed funds	6,591	9,436
Income tax paid (net of refunds)	1,912	1,650
Supplemental disclosures of noncash investing and financing activities:
Transfer of loans to loans held for sale	0	48,494
Transfer of loans to other real estate owned	88	306
Pending settlements on securities purchased	$ 0	$ 11,663

BUSINESS DESCRIPTION	3 Months Ended
BUSINESS DESCRIPTION	Mar. 31, 2022
BUSINESS DESCRIPTION
BUSINESS DESCRIPTION	BUSINESS DESCRIPTION Midland States Bancorp, Inc. (the “Company,” “we,” “our,” or “us”) is a diversified financial holding company headquartered in Effingham, Illinois. Our wholly owned banking subsidiary, Midland States Bank (the “Bank”), has branches across Illinois and in Missouri, and provides a full range of commercial and consumer banking products and services, business equipment financing, merchant credit card services, trust and investment management services, and insurance and financial planning services. Our principal business activity has been lending to and accepting deposits from individuals, businesses, municipalities and other entities. We have derived income principally from interest charged on loans and, to a lesser extent, from interest and dividends earned on investment securities. We have also derived income from noninterest sources, such as: fees received in connection with various lending and deposit services; wealth management services; commercial Federal Housing Administration ("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 AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements of the Company are unaudited and should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (the “SEC”) on February 25, 2022. The consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. A discussion of these policies can be found in Note 1 – Summary of Significant Accounting Policies included in the Company's 2021 Annual Report on Form 10-K. Certain reclassifications of 2021 amounts have been made to conform to the 2022 presentation. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or any other period. Principles of Consolidation The consolidated financial statements include the accounts of the parent company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Assets held for customers in a fiduciary or agency capacity are not assets of the Company and, accordingly, other than trust cash on deposit with the Bank, are not included in the accompanying unaudited balance sheets. 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. FASB ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures – In March 2022, the FASB issued ASU No. 2022-02, which 1) eliminates the accounting guidance for troubled debt restructurings ("TDRs") by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty; and 2) requires that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022 and the amendments should be applied prospectively, although the entity has the option to apply a modified retrospective transition method for the recognition and measurement of TDRs, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements.

DISPOSITIONS AND ACQUISITONS	3 Months Ended
DISPOSITIONS AND ACQUISITONS	Mar. 31, 2022
Business Combinations [Abstract]
DISPOSITIONS AND ACQUISITIONS	DISPOSITIONS AND ACQUISITIONS FNBC Bank & Trust On January 25, 2022, the Company announced the signing of a branch purchase and assumption agreement with FNBC Bank & Trust ("FNBC") whereby we have agreed to acquire the deposits and certain loans and other assets associated with FNBC's branches in Mokena and Yorkville, Illinois. We expect to acquire approximately $86 million of deposits and approximately $26 million of loans. The transaction is expected to close during the second quarter of 2022. ATG Trust Company On June 1, 2021, the Company completed its acquisition of substantially all of the trust assets of ATG Trust Company (“ATG Trust”), a trust company based in Chicago, Illinois, with approximately $399.7 million in assets under management. In aggregate, the Company acquired the assets of ATG Trust for $2.7 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.

INVESTMENT SECURITIES

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

Investment Securities Available for Sale

Investment securities available for sale at March 31, 2022 and December 31, 2021 were as follows:


	March 31, 2022
(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	$	66,534	$	—	$	3,410	$	—	$	63,124
U.S. government sponsored entities and U.S. agency securities	34,194		52		2,715		—		31,531
Mortgage-backed securities - agency	437,125		620		34,758		—		402,987
Mortgage-backed securities - non-agency	27,174		—		2,072		—		25,102
State and municipal securities	139,619		1,779		4,816		—		136,582
Corporate securities	193,296		1,206		4,754		—		189,748
Total available for sale securities	$	897,942	$	3,657	$	52,525	$	—	$	849,074


	December 31, 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 available for sale securities	$	904,695	$	11,505	$	9,376	$	221	$	906,603

The following is a summary of the amortized cost and fair value of the investment securities available for sale, by maturity, at March 31, 2022. 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	$	13,864	$	13,999
After one year through five years	143,470		139,722
After five years through ten years	237,281		230,606
After ten years	39,028		36,658
Mortgage-backed securities	464,299		428,089
Total available for sale securities	$	897,942	$	849,074

There were no sales of investment securities available for sale during both the three months ended March 31, 2022 and 2021.

The table below presents a rollforward by major security type for the three months ended March 31, 2022 and 2021 of the allowance for credit losses on investment securities available for sale held at period end:


(dollars in thousands)	Mortgage-backed securities - non-agency		State and municipal securities		Corporate securities		Total
Changes in allowance for credit losses on investment securities available for sale:
For the three months ended March 31, 2022
Balance, beginning of period	$	—	$	—	$	221	$	221
Current-period recapture of expected credit losses	—		—		(221)		(221)
Balance, end of period	$	—	$	—	$	—	$	—
For the three months ended March 31, 2021
Balance, beginning of period	$	—	$	29	$	337	$	366
Current-period provision for (recapture of) expected credit losses	28		(1)		123		150
Balance, end of period	$	28	$	28	$	460	$	516

Unrealized losses and fair values for investment securities available for sale as of March 31, 2022 and December 31, 2021, 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:


	March 31, 2022
	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	$	63,124	$	3,410	$	—	$	—	$	63,124	$	3,410
U.S. government sponsored entities and U.S. agency securities	17,050		1,319		8,603		1,396		25,653		2,715
Mortgage-backed securities - agency	249,809		21,437		113,330		13,321		363,139		34,758
Mortgage-backed securities - non-agency	19,740		1,410		5,362		662		25,102		2,072
State and municipal securities	57,628		4,431		3,845		385		61,473		4,816
Corporate securities	103,496		4,646		2,869		108		106,365		4,754
Total available for sale securities	$	510,847	$	36,653	$	134,009	$	15,872	$	644,856	$	52,525


	December 31, 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 available for sale securities	$	451,195	$	7,977	$	21,021	$	932	$	472,216	$	8,909

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

At March 31, 2022, 264 investment securities available for sale had unrealized losses with aggregate depreciation of 7.53% from their amortized cost basis. The unrealized losses related principally to the fluctuations in the current interest rate environment. In analyzing an issuer’s financial condition, we consider whether the securities are issued by the federal government or its agencies and whether downgrades by bond rating agencies have occurred. The Company does not intend to sell and it is likely that the Company will not be required to sell the securities prior to their anticipated recovery.

Equity Securities

Equity securities are recorded at fair value and totaled $9.2 million and $9.5 million at March 31, 2022 and December 31, 2021, respectively.

During both the three months ended March 31, 2022 and 2021, there were no sales of equity securities. Net unrealized gains and losses on equity securities for the three months ended March 31, 2022 and 2021 are summarized below:


	Three Months Ended March 31,
(dollars in thousands)	2022		2021
Equity securities



Net unrealized (losses) gains	$	(522)	$	81

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

LOANS

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

LOANS

The following table presents total loans outstanding by portfolio class, as of March 31, 2022 and December 31, 2021:


(dollars in thousands)	March 31, 2022		December 31, 2021
Commercial:
Commercial	$	796,498	$	770,670
Commercial other	641,627		679,518
Commercial real estate:
Commercial real estate non-owner occupied	1,291,239		1,105,333
Commercial real estate owner occupied	499,871		469,658
Multi-family	252,507		171,875
Farmland	70,424		69,962
Construction and land development	188,668		193,749
Total commercial loans	3,740,834		3,460,765
Residential real estate:
Residential first lien	268,787		274,412
Other residential	60,544		63,739
Consumer:
Consumer	101,692		106,008
Consumer other	939,104		896,597
Lease financing	429,000		423,280
Total loans, gross	$	5,539,961	$	5,224,801

Total loans include net deferred loan costs of $5.2 million and $4.6 million at March 31, 2022 and December 31, 2021, respectively, and unearned discounts of $47.4 million and $46.1 million within the lease financing portfolio at March 31, 2022 and December 31, 2021, respectively.

At March 31, 2022, the Company had commercial real estate and residential real estate loans held for sale totaling $8.9 million compared to $32.0 million at December 31, 2021. During the three months ended March 31, 2022 and 2021, the Company sold commercial real estate, residential real estate and consumer loans with proceeds totaling $103.1 million and $332.7 million, respectively.

Classifications of Loan Portfolio

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

Commercial—Loans to varying types of businesses, including municipalities, school districts and nonprofit organizations, for the purpose of supporting working capital, operational needs and term financing of equipment. Repayment of such loans is generally provided through operating cash flows of the business. Commercial loans are predominately secured by equipment, inventory, accounts receivable, and other sources of repayment. Paycheck Protection Program ("PPP") loans of $22.9 million and $52.5 million as of March 31, 2022 and December 31, 2021, respectively, and commercial FHA warehouse lines of $84.0 million and $91.9 million as of March 31, 2022 and December 31, 2021, respectively, were included in this classification.

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

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

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

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

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

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

We have extended loans to certain of our directors, executive officers, principal shareholders and their affiliates. These loans were made in the ordinary course of business upon normal terms, including collateralization and interest rates prevailing at the time. The aggregate loans outstanding to the Company's directors, executive officers, principal shareholders and their affiliates totaled $23.4 million and $13.9 million at March 31, 2022 and December 31, 2021, respectively. The new loans, other additions, repayments and other reductions for the three months ended March 31, 2022 and 2021, are summarized as follows:


	Three Months Ended March 31,
(dollars in thousands)	2022		2021
Beginning balance	$	13,869	$	19,693
New loans and other additions	9,805		543
Repayments and other reductions	(300)		(864)
Ending balance	$	23,374	$	19,372

The following table represents, by loan portfolio segment, a summary of changes in the allowance for credit losses on loans for the three months ended March 31, 2022 and 2021:


	Commercial Loan Portfolio						Other Loan Portfolio
(dollars in thousands)	Commercial		Commercial real estate		Construction and land development		Residential real estate		Consumer		Lease financing		Total
Changes in allowance for credit losses on loans for the three months ended March 31, 2022:
Balance, beginning of period	$	14,375	$	22,993	$	972	$	2,695	$	2,558	$	7,469	$	51,062
Provision for credit losses on loans	389		3,444		(156)		584		257		(386)		4,132
Charge-offs	(2,154)		(227)		(6)		(104)		(305)		(206)		(3,002)
Recoveries	11		67		6		113		162		387		746
Balance, end of period	$	12,621	$	26,277	$	816	$	3,288	$	2,672	$	7,264	$	52,938

Changes in allowance for credit losses on loans for the three months ended March 31, 2021:
Balance, beginning of period	$	19,851	$	25,465	$	1,433	$	3,929	$	2,338	$	7,427	$	60,443
Provision for credit losses on loans	(2,021)		7,127		11		68		53		(1,288)		3,950
Charge-offs	(506)		(773)		(271)		(110)		(242)		(253)		(2,155)
Recoveries	15		2		66		94		122		150		449
Balance, end of period	$	17,339	$	31,821	$	1,239	$	3,981	$	2,271	$	6,036	$	62,687

The Company utilizes a combination of models which 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 determines the likelihood of default within the twelve month time horizon. The regression model uses forward-looking economic forecasts including variables such as gross domestic product, housing price index, 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 amortized cost basis of individually evaluated loans on nonaccrual status as of March 31, 2022 and December 31, 2021:


	March 31, 2022						December 31, 2021
(dollars in thousands)	Nonaccrual with allowance		Nonaccrual with no allowance		Total nonaccrual		Nonaccrual with allowance		Nonaccrual with no allowance		Total nonaccrual
Commercial:
Commercial	$	4,463	$	2,275	$	6,738	$	4,681	$	2,275	$	6,956
Commercial other	3,248		—		3,248		4,467		—		4,467
Commercial real estate:
Commercial real estate non-owner occupied	1,992		21,344		23,336		1,914		9,912		11,826
Commercial real estate owner occupied	3,059		1,340		4,399		2,164		1,340		3,504
Multi-family	188		1,935		2,123		201		1,967		2,168
Farmland	153		—		153		155		—		155
Construction and land development	262		—		262		83		—		83
Total commercial loans	13,365		26,894		40,259		13,665		15,494		29,159
Residential real estate:
Residential first lien	3,197		753		3,950		3,116		832		3,948
Other residential	926		—		926		836		—		836
Consumer:
Consumer	97		—		97		110		—		110

Lease financing	1,454		—		1,454		1,510		—		1,510
Total loans	$	19,039	$	27,647	$	46,686	$	19,237	$	16,326	$	35,563

There was no interest income recognized on nonaccrual loans during the three months ended March 31, 2022 and 2021 while the loans were in nonaccrual status. Additional interest income that would have been recorded on nonaccrual loans had they been current in accordance with their original terms was $0.8 million and $0.7 million for the three months ended March 31, 2022 and 2021, respectively. The Company recognized interest income on commercial and commercial real estate loans modified under troubled debt restructurings of $0.1 million in each of the three months ended March 31, 2022 and 2021.

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 March 31, 2022 and December 31, 2021:


	Type of Collateral
(dollars in thousands)	Real Estate		Blanket Lien		Equipment		Total
March 31, 2022
Commercial
Commercial	$	—	$	4,890	$	—	$	4,890
Commercial Other	—		245		939		1,184
Commercial Real Estate
Non-Owner Occupied	23,013		—		—		23,013
Owner Occupied	1,336		—		—		1,336
Multi-Family	1,937		—		—		1,937




Total Collateral Dependent Loans	$	26,286	$	5,135	$	939	$	32,360

December 31, 2021
Commercial
Commercial	$	—	$	5,402	$	—	$	5,402
Commercial Other	—		—		502		502
Commercial Real Estate
Non-Owner Occupied	11,604		—		—		11,604
Owner Occupied	1,336		—		—		1,336
Multi-Family	1,969		—		—		1,969




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

The aging status of the recorded investment in loans by portfolio as of March 31, 2022 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	$	281	$	25	$	759	$	1,065	$	6,738	$	788,695	$	796,498
Commercial other	3,070		1,730		—		4,800		3,248		633,579		641,627
Commercial real estate:
Commercial real estate non-owner occupied	131		441		—		572		23,336		1,267,331		1,291,239
Commercial real estate owner occupied	129		—		—		129		4,399		495,343		499,871
Multi-family	14,465		—		—		14,465		2,123		235,919		252,507
Farmland	709		6		—		715		153		69,556		70,424
Construction and land development	—		—		—		—		262		188,406		188,668
Total commercial loans	18,785		2,202		759		21,746		40,259		3,678,829		3,740,834
Residential real estate:
Residential first lien	207		47		—		254		3,950		264,583		268,787
Other residential	9		91		—		100		926		59,518		60,544
Consumer:
Consumer	84		4		—		88		97		101,507		101,692
Consumer other	3,452		2,339		70		5,861		—		933,243		939,104
Lease financing	1,505		319		—		1,824		1,454		425,722		429,000
Total loans	$	24,042	$	5,002	$	829	$	29,873	$	46,686	$	5,463,402	$	5,539,961

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		Nonaccrual		Current		Total
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

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 outstanding balance of modifications made as a result of COVID, that were not considered TDRs under the Cornavirus Aid, Relief, and Economic Security Act, as amended by Section 541 of the Consolidated Appropriations Act, totaled $1.1 million and $13.3 million at March 31, 2022 and December 31, 2021, 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 March 31, 2022 and December 31, 2021:


	March 31, 2022						December 31, 2021
(dollars in thousands)	Accruing (1)		Non-accrual (2)		Total		Accruing (1)		Non-accrual (2)		Total
Commercial	$	1,275	$	1,220	$	2,495	$	833	$	1,422	$	2,255
Commercial real estate	109		3,143		3,252		1,522		3,302		4,824
Construction and land development	34		—		34		37		—		37
Residential real estate	2,861		872		3,733		3,128		784		3,912
Consumer	175		—		175		98		—		98
Lease financing	931		520		1,451		1,394		241		1,635
Total loans	$	5,385	$	5,755	$	11,140	$	7,012	$	5,749	$	12,761

(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 at March 31, 2022 and December 31, 2021. The Company had no unfunded commitments in connection with TDRs at March 31, 2022 and December 31, 2021.

The following table presents a summary of loans by portfolio that were restructured during the three months ended March 31, 2022 and 2021. There were no loans modified as TDRs within the previous twelve months that subsequently defaulted during the three months ended March 31, 2022 or 2021:


	Commercial loan portfolio						Other loan portfolio
(dollars in thousands)	Commercial		Commercial real estate		Construction and land development		Residential real estate		Consumer		Lease financing		Total
For the three months ended March 31, 2022
Troubled debt restructurings:
Number of loans	2		—		—		3		3		2		10
Pre-modification outstanding balance	$	645	$	—	$	—	$	200	$	79	$	91	$	1,015
Post-modification outstanding balance	645		—		—		178		79		91		993





For the three months ended March 31, 2021
Troubled debt restructurings:
Number of loans	—		—		1		2		2		—		5
Pre-modification outstanding balance	$	—	$	—	$	49	$	55	$	31	$	—	$	135
Post-modification outstanding balance	—		—		40		56		31		—		127

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 March 31, 2022 and December 31, 2021:


			March 31, 2022
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2022		2021		2020		2019		2018		Prior		Revolving loans		Total
Commercial	Commercial	Acceptable credit quality	$	35,988	$	102,759	$	78,574	$	44,134	$	20,640	$	56,169	$	425,219	$	763,483
		Special mention	—		129		48		551		1,343		299		3,130		5,500
		Substandard	—		372		—		827		1,846		4,330		13,402		20,777
		Substandard – nonaccrual	—		340		—		240		174		463		5,521		6,738
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	35,988		103,600		78,622		45,752		24,003		61,261		447,272		796,498

	Commercial other	Acceptable credit quality	66,720		213,502		149,049		88,347		24,879		438		77,191		620,126
		Special mention	—		227		1,861		9,462		3,745		—		1,375		16,670
		Substandard	—		—		—		62		—		—		1,521		1,583
		Substandard – nonaccrual	—		355		72		2,466		350		—		5		3,248
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	66,720		214,084		150,982		100,337		28,974		438		80,092		641,627

Commercial real estate	Non-owner occupied	Acceptable credit quality	221,262		441,878		153,618		125,995		20,477		210,880		5,295		1,179,405
		Special mention	—		26		3,480		15,343		1,006		1,776		—		21,631
		Substandard	—		6,118		—		21,133		1,668		37,698		250		66,867
		Substandard – nonaccrual	—		134		989		6,013		12,779		3,421		—		23,336
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	221,262		448,156		158,087		168,484		35,930		253,775		5,545		1,291,239

	Owner occupied	Acceptable credit quality	50,665		140,875		67,486		47,486		39,078		123,447		1,345		470,382
		Special mention	—		146		—		182		161		4,585		32		5,106
		Substandard	—		4,188		593		10,676		—		4,228		299		19,984
		Substandard – nonaccrual	—		338		334		162		333		3,232		—		4,399
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	50,665		145,547		68,413		58,506		39,572		135,492		1,676		499,871

	Multi-family	Acceptable credit quality	99,607		77,047		19,938		504		25,326		15,591		1,556		239,569
		Special mention	—		—		—		—		—		—		—		—
		Substandard	—		975		—		—		—		9,840		—		10,815
		Substandard – nonaccrual	—		—		—		118		—		2,005		—		2,123
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	99,607		78,022		19,938		622		25,326		27,436		1,556		252,507

	Farmland	Acceptable credit quality	1,606		17,142		14,466		4,811		3,216		25,943		1,944		69,128
		Special mention	—		—		—		—		145		187		—		332
		Substandard	—		71		—		166		13		561		—		811
		Substandard – nonaccrual	—		—		—		—		103		—		50		153
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	1,606		17,213		14,466		4,977		3,477		26,691		1,994		70,424

Construction and land development		Acceptable credit quality	15,483		71,366		53,813		15,485		3,847		4,650		21,923		186,567
		Special mention	—		—		—		—		—		220		—		220
		Substandard	—		—		—		—		—		—		—		—
		Substandard – nonaccrual	—		—		—		223		—		39		—		262
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	163		1,257		36		—		—		163		—		1,619
		Subtotal	15,646		72,623		53,849		15,708		3,847		5,072		21,923		188,668

Total		Acceptable credit quality	491,331		1,064,569		536,944		326,762		137,463		437,118		534,473		3,528,660
		Special mention	—		528		5,389		25,538		6,400		7,067		4,537		49,459
		Substandard	—		11,724		593		32,864		3,527		56,657		15,472		120,837
		Substandard – nonaccrual	—		1,167		1,395		9,222		13,739		9,160		5,576		40,259
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	163		1,257		36		—		—		163		—		1,619
Total commercial loans			$	491,494	$	1,079,245	$	544,357	$	394,386	$	161,129	$	510,165	$	560,058	$	3,740,834


			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

The Company evaluates the credit quality of its other loan portfolios, which includes residential real estate, consumer and lease financing loans, based primarily on the aging status of the loan and payment activity. Accordingly, loans on nonaccrual status, loans past due 90 days or more and still accruing interest, and loans modified under troubled debt restructurings are considered to be nonperforming for purposes of credit quality evaluation. The following tables present the recorded investment of our other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming as of March 31, 2022 and December 31, 2021:


			March 31, 2022
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
Residential real estate	Residential first lien	Performing	$	9,120	$	39,688	$	31,213	$	22,780	$	29,415	$	130,266	$	290	$	262,772
		Nonperforming	—		—		107		268		697		4,943		—		6,015
		Subtotal	9,120		39,688		31,320		23,048		30,112		135,209		290		268,787

	Other residential	Performing	533		569		644		1,384		1,782		2,340		51,570		58,822
		Nonperforming	—		—		—		10		10		227		1,475		1,722
		Subtotal	533		569		644		1,394		1,792		2,567		53,045		60,544

Consumer	Consumer	Performing	5,533		63,545		11,939		6,860		7,400		4,052		2,088		101,417
		Nonperforming	65		105		5		2		42		55		1		275
		Subtotal	5,598		63,650		11,944		6,862		7,442		4,107		2,089		101,692

	Consumer other	Performing	141,223		459,083		254,096		54,821		10,735		8,268		10,810		939,036
		Nonperforming	—		—		—		—		—		—		68		68
		Subtotal	141,223		459,083		254,096		54,821		10,735		8,268		10,878		939,104

Leases financing		Performing	52,071		137,002		115,102		77,931		36,775		7,734		—		426,615
		Nonperforming	—		—		529		672		1,049		135		—		2,385
		Subtotal	52,071		137,002		115,631		78,603		37,824		7,869		—		429,000

Total		Performing	208,480		699,887		412,994		163,776		86,107		152,660		64,758		1,788,662
		Nonperforming	65		105		641		952		1,798		5,360		1,544		10,465
Total other loans			$	208,545	$	699,992	$	413,635	$	164,728	$	87,905	$	158,020	$	66,302	$	1,799,127


			December 31, 2021
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2021		2020		2019		2018		2017		Prior		Revolving loans		Total
Residential real estate	Residential first lien	Performing	$	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

PREMISES AND EQUIPMENT, NET

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

PREMISES AND EQUIPMENT, NET

A summary of premises and equipment at March 31, 2022 and December 31, 2021 is as follows:


(dollars in thousands)	March 31, 2022		December 31, 2021
Land	$	15,603	$	15,696
Buildings and improvements	67,790		67,143
Furniture and equipment	33,491		33,545
Total	116,884		116,384
Accumulated depreciation	(47,138)		(45,592)
Premises and equipment, net	$	69,746	$	70,792

Depreciation expense for the three months ended March 31, 2022 and 2021 was $1.3 million and $1.4 million, respectively.

LEASES

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

LEASES

The Company had operating lease right-of-use assets of $8.1 million and $8.4 million as of March 31, 2022 and December 31, 2021, respectively, and operating lease liabilities of $10.3 million and $10.7 million at the same dates, respectively.

The operating leases, primarily for banking offices and operating facilities, have remaining lease terms of 3 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 three months ended March 31, 2022 and 2021 was as follows:


	Three Months Ended March 31,
(dollars in thousands)	2022			2021
Operating lease cost	$	508		$	523
Operating cash flows from leases	606			783
Right-of-use assets obtained in exchange for lease obligations	121			80
Right-of-use assets derecognized due to terminations or impairment	—			(122)
Weighted average remaining lease term	7.43 years			8.16 years
Weighted average discount rate	2.87		%	2.91		%

The projected minimum rental payments under the terms of the leases as of March 31, 2022 were as follows:


(dollars in thousands)	Amount
Year ending December 31:
2022 remaining	$	1,643
2023	2,105
2024	1,799
2025	894
2026	763
Thereafter	4,251
Total future minimum lease payments	11,455
Less imputed interest	(1,197)
Total operating lease liabilities	$	10,258

LOAN SERVICING RIGHTS

3 Months Ended

Mar. 31, 2022

Transfers and Servicing [Abstract]

LOAN SERVICING RIGHTS

A summary of loan servicing rights at March 31, 2022 and December 31, 2021 is as follows:


	March 31, 2022				December 31, 2021
(dollars in thousands)	Serviced Loans		Carrying Value		Serviced Loans		Carrying Value
Commercial FHA	$	2,573,048	$	26,111	$	2,650,531	$	27,386
SBA	47,675		716		50,043		774
Residential	287,963		657		302,618		705
Total	$	2,908,686	$	27,484	$	3,003,192	$	28,865

Commercial FHA Mortgage Loan Servicing

Changes in our commercial FHA loan servicing rights for the three months ended March 31, 2022 and 2021 are summarized as follows:


	Three Months Ended March 31,
(dollars in thousands)	2022		2021
Loan servicing rights:
Balance, beginning of period	$	27,386	$	38,322

Amortization	(660)		(783)
Refinancing fee received from third party	(221)		(267)
Permanent impairment	(394)		(1,275)
Balance, end of period	$	26,111	$	35,997






Fair value:
At beginning of period	$	28,368	$	38,322
At end of period	$	27,941	$	35,997

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 8.21% and 8.24% at March 31, 2022 and December 31, 2021, respectively, while the weighted average discount rate was 11.87% for both periods.

- 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
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-Name Accounting Standards Codification
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+ Details

GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

The carrying amount of goodwill by segment at March 31, 2022 and December 31, 2021 is summarized as follows:


(dollars in thousands)	March 31, 2022		December 31, 2021
Banking	$	157,158	$	157,158

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

The Company’s intangible assets, consisting of core deposit and customer relationship intangibles, as of March 31, 2022 and December 31, 2021 are summarized as follows:


	March 31, 2022						December 31, 2021
(dollars in thousands)	Gross carrying amount		Accumulated amortization		Total		Gross carrying amount		Accumulated amortization		Total
Core deposit intangibles	$	57,012	$	(41,667)	$	15,345	$	57,012	$	(40,603)	$	16,409
Customer relationship intangibles	15,918		(8,287)		7,631		15,918		(7,953)		7,965
Total intangible assets	$	72,930	$	(49,954)	$	22,976	$	72,930	$	(48,556)	$	24,374

Amortization of intangible assets was $1.4 million and $1.5 million for the three months ended March 31, 2022 and 2021, respectively

DERIVATIVE INSTRUMENTS

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

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

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

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

The following table summarizes the interest rate lock commitments and forward commitments to sell mortgage-backed securities held by the Company, their notional amount and estimated fair values at March 31, 2022 and December 31, 2021:


	Notional amount				Fair value gain
(dollars in thousands)	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Derivative instruments (included in other assets):
Interest rate lock commitments	$	26,485	$	66,216	$	148	$	410
Forward commitments to sell mortgage-backed securities	24,940		60,427		296		—
Total	$	51,425	$	126,643	$	444	$	410


	Notional amount				Fair value loss
(dollars in thousands)	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Derivative instruments (included in other liabilities):

Forward commitments to sell mortgage-backed securities	$	—	$	18,362	$	—	$	19

During the three months ended March 31, 2022, the Company recognized net gains of $0.1 million on derivative instruments in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. During the three months ended March 31, 2021, the Company recognized net losses of $0.5 million on derivative instruments in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income.

Cash Flow Hedges

In the first quarter of 2022, 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 pools of loans indexed to prime at March 31, 2022:


(dollars in thousands)	March 31, 2022
Notional Amount	$	200,000
Average remaining life in years	4.13 years
Weighted average pay rate	3.50		%
Weighted average receive rate	5.48		%

Quarterly, the effectiveness evaluation is based on the fluctuation of the variable interest the Company receives from the customers for the loans as compared to the fixed interest received from the counterparty.

The Company has $140.0 million notional amount of future-starting receive-fixed, pay-variable interest rate swaps on certain FHLB or other fixed-rate advances. These swaps are effective beginning in April 2023. The Company pays or receives the net interest amount quarterly based on the respective hedge agreement and includes the amount as part of FHLB advances interest expense on the consolidated statements of income.

At March 31, 2022, the $10.2 million fair value of cash flow hedges was included in other assets in the consolidated balance sheets. At December 31, 2021, the $5.1 million fair value of cash flow hedges was included in other liabilities in the consolidated balance sheets. The tax effected amounts of $7.4 million and $3.7 million at March 31, 2022 and December 31, 2021, respectively, were included in accumulated other comprehensive income. There were no amounts recorded in the consolidated statements of income for the three months ended March 31, 2022 or 2021 related to ineffectiveness.

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

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 the customer derivative instruments and the offsetting counterparty derivative instruments were $7.8 million and $7.9 million at March 31, 2022 and December 31, 2021, respectively. The fair value of the customer derivative instruments and the offsetting counterparty derivative instruments was $0.4 million at December 31, 2021, which was included in other assets and other liabilities, respectively, on the consolidated balance sheet. The fair value of the derivatives was $0 at March 31, 2022.

DEPOSITS

3 Months Ended

Mar. 31, 2022

Deposits [Abstract]

DEPOSITS

The following table summarizes the classification of deposits as of March 31, 2022 and December 31, 2021:


(dollars in thousands)	March 31, 2022		December 31, 2021
Noninterest-bearing demand	$	1,965,032	$	2,245,701
Interest-bearing:
Checking	1,779,018		1,663,021
Money market	964,352		869,067
Savings	710,955		679,115
Time	638,182		653,744
Total deposits	$	6,057,539	$	6,110,648

SHORT-TERM BORROWINGS

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

SHORT-TERM BORROWINGS

The following table presents the distribution of short-term borrowings and related weighted average interest rates as of March 31, 2022 and December 31, 2021:


	Repurchase agreements
(dollars in thousands)	As of and for the Three Months Ended March 31, 2022			As of and for the Year Ended December 31, 2021
Outstanding at period-end	$	60,352		$	76,803
Average amount outstanding	70,043			68,986
Maximum amount outstanding at any month end	76,807			77,497
Weighted average interest rate:
During period	0.14		%	0.12		%
End of period	0.15		%	0.13		%

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 $65.5 million and $78.3 million at March 31, 2022 and December 31, 2021, respectively, were pledged for securities sold under agreements to repurchase.

The Company had available lines of credit of $64.8 million and $55.9 million at March 31, 2022 and December 31, 2021, 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 $70.4 million and $64.8 million at March 31, 2022 and December 31, 2021, respectively. There were no outstanding borrowings under these lines at March 31, 2022 and December 31, 2021.

At March 31, 2022, the Company had available federal funds lines of credit totaling $45.0 million. These lines of credit were unused at March 31, 2022.

FHLB ADVANCES AND OTHER BORROWINGS

3 Months Ended

Mar. 31, 2022

FHLB ADVANCES AND OTHER BORROWINGS

FHLB ADVANCES AND OTHER BORROWINGS

The following table summarizes our FHLB advances and other borrowings as of March 31, 2022 and December 31, 2021:


(dollars in thousands)	March 31, 2022		December 31, 2021
Midland States Bancorp, Inc.
Revolving line of credit - variable interest rate equivalent to Daily Simple SOFR plus 1.60%	$	—	$	—
Series G redeemable preferred stock - 171 shares at $1,000 per share	171		171
Midland States Bank
FHLB advances – putable fixed rate at rates averaging 1.48% at March 31, 2022 and December 31, 2021 – maturing through February 2030 with call provisions through May 2022	210,000		210,000
FHLB advances –SOFR floater at rates averaging 1.90% and 1.67% at March 31, 2022 and December 31, 2021, respectively – maturing in October 2023	100,000		100,000
Total FHLB advances and other borrowings	$	310,171	$	310,171

The Company’s advances from the FHLB are collateralized by a blanket collateral agreement of qualifying mortgage and home equity line of credit loans and certain commercial real estate loans totaling approximately $2.35 billion and $2.10 billion at March 31, 2022 and December 31, 2021, respectively.

On October 12, 2021, the Company entered into a loan agreement with another bank for a revolving line of credit in the original principal amount of up to $15.0 million. The loan matures on October 11, 2022 and has a variable rate of interest equal to the Daily Simple Secured Overnight Financing Rate ("SOFR") plus 1.60%. Beginning January 31, 2022, the Company is required to make quarterly interest payments with the principal balance due at maturity. The loan agreement contains financial covenants that require the Company to be well-capitalized at all times, maintain a minimum total capital to risk-weighted assets ratio, a minimum return on average assets and a maximum percentage of nonperforming assets to tangible capital. At March 31, 2022, the Company was in compliance with or has obtained waivers for each of these financial covenants.

SUBORDINATED DEBT

3 Months Ended

Mar. 31, 2022

Subordinated Borrowings [Abstract]

SUBORDINATED DEBT

The following table summarizes the Company’s subordinated debt as of March 31, 2022 and December 31, 2021:


(dollars in thousands)	March 31, 2022		December 31, 2021
Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $550 - maturing June 18, 2025	$	546	$	546
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	39,642		39,626
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	72,107		72,042
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	26,889		26,877
Total subordinated debt	$	139,184	$	139,091

The subordinated debentures may be included in Tier 2 capital (with certain limitations applicable) under current regulatory guidelines and interpretations.

EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHAREEarnings per share are calculated utilizing the two-class method. Basic earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding. Diluted earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards. The diluted earnings per share computation for the three months ended March 31, 2022 and 2021 excluded antidilutive stock options of 15,597 and 77,556, respectively, because the exercise prices of these stock options exceeded the average market prices of the Company’s common shares for

those respective periods. Presented below are the calculations for basic and diluted earnings per common share for the three months ended March 31, 2022 and 2021:


	Three Months Ended March 31,
(dollars in thousands, except per share data)	2022		2021
Net income	$	20,749	$	18,538



Common shareholder dividends	(6,389)		(6,237)
Unvested restricted stock award dividends	(75)		(64)
Undistributed earnings to unvested restricted stock awards	(163)		(125)
Undistributed earnings to common shareholders	$	14,122	$	12,112
Basic
Distributed earnings to common shareholders	$	6,389	$	6,237
Undistributed earnings to common shareholders	14,122		12,112
Total common shareholders earnings, basic	$	20,511	$	18,349
Diluted
Distributed earnings to common shareholders	$	6,389	$	6,237
Undistributed earnings to common shareholders	14,122		12,112
Total common shareholders earnings	20,511		18,349
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	—		—
Total common shareholders earnings, diluted	$	20,511	$	18,349
Weighted average common shares outstanding, basic	22,274,884		22,522,983
Options	75,423		55,570
Weighted average common shares outstanding, diluted	22,350,307		22,578,553
Basic earnings per common share	$	0.92	$	0.81
Diluted earnings per common share	0.92		0.81

FAIR VALUE OF FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2022

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.

Assets and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and nonrecurring basis at March 31, 2022 and December 31, 2021, are summarized below:


	March 31, 2022
(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	$	63,124	$	63,124	$	—	$	—
U.S. government sponsored entities and U.S. agency securities	31,531		—		31,531		—
Mortgage-backed securities - agency	402,987		—		402,987		—
Mortgage-backed securities - non-agency	25,102		—		25,102		—
State and municipal securities	136,582		—		136,582		—
Corporate securities	189,748		—		188,813		935
Equity securities	9,172		9,172		—		—
Loans held for sale	8,931		—		8,931		—
Derivative assets	10,654		—		10,654		—

Total	$	877,831	$	72,296	$	804,600	$	935
Liabilities
Derivative liabilities	$	10	$	—	$	10	$	—

Total	$	10	$	—	$	10	$	—

Assets measured at fair value on a non-recurring basis:
Loan servicing rights	$	27,484	$	—	$	—	$	27,484

Nonperforming loans	47,009		34,448		5,770		6,791
Other real estate owned	11,537		—		11,537		—
Assets held for sale	1,740		—		1,740		—


	December 31, 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		—
Derivative assets	5,883		—		5,883		—

Total	$	954,060	$	74,446	$	878,679	$	935
Liabilities
Derivative liabilities	$	397	$	—	$	397	$	—

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		—

The following table provides a reconciliation of activity for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2022 and 2021:


	Three Months Ended March 31,
(dollars in thousands)	2022		2021
Balance, beginning of period	$	935	$	959
Total realized in earnings (1)	4		2
Total unrealized in other comprehensive income (2)	—		—
Net settlements (principal and interest)	(4)		(2)
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 March 31, 2022 and December 31, 2021:

(dollars in thousands)

Fair value

Valuation
technique

Unobservable
input / assumptions

Range (weighted average)(1)

March 31, 2022

Corporate securities

935

Consensus pricing

Net market price

0.0% - 4.3% (2.8)%

December 31, 2021

Corporate securities

935

Consensus pricing

Net market price

0.0% - 7.0% (4.5)%

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

The significant unobservable inputs used in the fair value measurement of the Company’s corporate securities is net market price. The corporate securities are not actively traded, and as a result, fair value is determined utilizing third-party valuation services through consensus pricing. Significant changes in any of the inputs in isolation would result in a significant change to the fair value measurement. Generally, net market price increases when market interest rates decline and declines when market interest rates increase.

The following table presents losses recognized on assets measured on a nonrecurring basis for the three months ended March 31, 2022 and 2021:


	Three Months Ended March 31,
(dollars in thousands)	2022		2021
Loan servicing rights	$	394	$	1,275

Nonperforming loans	1,930		1,977
Other real estate owned	337		103

Total losses on assets measured on a nonrecurring basis	$	2,661	$	3,355

The following tables present quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured on a nonrecurring basis at March 31, 2022 and December 31, 2021:

(dollars in thousands)

Fair value

Valuation
technique

Unobservable
input / assumptions

Range (weighted average)(1)

March 31, 2022

Loan servicing rights:

Commercial MSR

27,941

Discounted cash flow

Prepayment speed

8.00% - 18.00% (8.21%)

Discount rate

10.00% - 27.00% (11.87%)

SBA servicing rights

884

Discounted cash flow

Prepayment speed

13.84% - 15.76% (15.47%)

Discount rate

10.00% - 12.00% (11.00%)

Residential MSR

2,188

Discounted cash flow

Prepayment speed

10.38% -26.28% (11.76%)

Discount rate

9.00% - 11.50% (10.13%)

Other:

Nonperforming loans

6,791

Fair value of collateral

Discount for type of property,

3.90% - 18.90% (5.25%)

age of appraisal and current status

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%)

MSR held for sale

705

Discounted cash flow

Prepayment speed

11.94% - 27.48% (14.94%)

Discount rate

9.00% - 11.50% (10.25%)

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

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

The Company has elected the fair value option for newly originated commercial and residential loans held for sale. These loans are intended for sale and are hedged with derivative instruments. We have elected the fair value option

to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplification.

The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected as of March 31, 2022 and December 31, 2021:


	March 31, 2022						December 31, 2021
(dollars in thousands)	Aggregate fair value		Difference		Contractual principal		Aggregate fair value		Difference		Contractual principal
Commercial loans held for sale	$	1,269	$	18	$	1,251	$	19,230	$	—	$	19,230
Residential loans held for sale	7,662		151		7,511		12,815		584		12,231

Total loans held for sale	$	8,931	$	169	$	8,762	$	32,045	$	584	$	31,461

The following table presents the amount of gains (losses) from fair value changes included in income before income taxes for financial assets carried at fair value for the three months ended March 31, 2022 and 2021:


	Three Months Ended March 31,
(dollars in thousands)	2022		2021
Commercial loans held for sale	$	18	$	(44)
Residential loans held for sale	(381)		(383)
Total loans held for sale	$	(363)	$	(427)

The carrying values and estimated fair value of certain financial instruments not carried at fair value at March 31, 2022 and December 31, 2021 were as follows:


	March 31, 2022
(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	$	326,086	$	326,086	$	326,086	$	—	$	—
Federal funds sold	6,178		6,178		6,178		—		—

Loans, net	5,487,023		5,409,425		—		—		5,409,425
Accrued interest receivable	19,831		19,831		—		19,831		—

Liabilities
Deposits	$	6,057,539	$	6,046,710	$	—	$	6,046,710	$	—
Short-term borrowings	60,352		60,352		—		60,352		—
FHLB and other borrowings	310,171		312,791		—		312,791		—
Subordinated debt	139,184		141,859		—		141,859		—
Trust preferred debentures	49,524		56,232		—		56,232		—
Accrued interest payable	2,178		2,178		—		2,178		—


	December 31, 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

In accordance with our adoption of ASU 2016-1 in 2019, the methods utilized to measure fair value of financial instruments at March 31, 2022 and December 31, 2021 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

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS, CONTINGENCIES AND CREDIT RISK

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 March 31, 2022 and December 31, 2021 were as follows:


(dollars in thousands)	March 31, 2022		December 31, 2021
Commitments to extend credit	$	1,045,127	$	994,709
Financial guarantees – standby letters of credit	14,465		14,325

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 2022 and years prior, borrower default expectations, historical investor repurchase demand and appeals success rates, and estimated loss severity. Loans repurchased from investors are initially recorded at fair value, which becomes the Company’s new accounting basis. Any difference between the loan’s fair value and the outstanding principal amount is charged or credited to the mortgage repurchase liability, as appropriate. Subsequent to repurchase, such loans are carried in loans receivable. There were no losses as a result of make-whole requests and loan repurchases for the three months ended March 31, 2022 and 2021. The liability for unresolved repurchase demands totaled $0.2 million and $0.2 million at March 31, 2022 and December 31, 2021, respectively.

SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

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

Selected business segment financial information for the three months ended March 31, 2022 and 2021 were as follows:


(dollars in thousands)	Banking		Wealth Management		Other		Total
Three Months Ended March 31, 2022
Net interest income (expense)	$	59,353	$	—	$	(2,526)	$	56,827
Provision for credit losses	4,167		—		—		4,167
Noninterest income	8,406		7,139		68		15,613
Noninterest expense	36,247		4,675		(38)		40,884
Income (loss) before income taxes (benefit)	27,345		2,464		(2,420)		27,389
Income taxes (benefit)	6,715		690		(765)		6,640
Net income (loss)	$	20,630	$	1,774	$	(1,655)	$	20,749
Total assets	$	7,355,117	$	29,828	$	(46,230)	$	7,338,715

Three Months Ended March 31, 2021
Net interest income (expense)	$	54,718	$	—	$	(2,850)	$	51,868
Provision for credit losses	3,565		—		—		3,565
Noninterest income	8,864		5,931		21		14,816
Noninterest expense	35,516		4,001		(438)		39,079
Income (loss) before income taxes (benefit)	24,501		1,930		(2,391)		24,040
Income taxes (benefit)	5,789		540		(827)		5,502
Net income (loss)	$	18,712	$	1,390	$	(1,564)	$	18,538
Total assets	$	6,912,750	$	29,513	$	(57,477)	$	6,884,786

- 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
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 32
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

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

+ Details

REVENUE FROM CONTRACTS WITH CUSTOMERS

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company’s revenue from contracts with customers in the scope of Topic 606 is recognized within noninterest income in the consolidated statements of income. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2022 and 2021.


	Three Months Ended March 31,
(dollars in thousands)	2022		2021
Noninterest income - in-scope of Topic 606
Wealth management revenue:
Trust management/administration fees	$	5,982	$	4,459
Investment advisory fees	—		453
Investment brokerage fees	598		400
Other	559		619
Service charges on deposit accounts:
Nonsufficient fund fees	1,332		1,142
Other	736		684
Interchange revenues	3,280		3,375
Other income:
Merchant services revenue	356		337
Other	768		792
Noninterest income - out-of-scope of Topic 606	2,002		2,555
Total noninterest income	$	15,613	$	14,816

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

Wealth Management Revenue

Wealth management revenue is primarily comprised of fees earned from the management and administration of trusts and other customer assets. Prior to 2022, the Company earned investment advisory fees through its SEC registered investment advisory subsidiary that was dissolved in December 2021. 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 card income and ATM user fees. Card income is primarily comprised of interchange fees earned for standing ready to authorize and providing settlement on card transactions processed through the MasterCard interchange network. The levels and structure of interchange rates are set by MasterCard and can vary based on cardholder purchase volumes. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with completion of the Company’s performance obligation, the transaction processing services provided to the cardholder. Payment is typically received immediately or in the following month. ATM fees are primarily generated when a Company cardholder withdraws funds from a non-Company ATM or a non-Company cardholder withdraws funds from a Company ATM. The Company satisfies its performance obligation for each transaction at the point in time when the ATM withdrawal is processed.

Other Noninterest Income

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

- Definition

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

+ References

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

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements of the Company are unaudited and should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (the “SEC”) on February 25, 2022. The consolidated financial statements have been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. A discussion of these policies can be found in Note 1 – Summary of Significant Accounting Policies included in the Company's 2021 Annual Report on Form 10-K. Certain reclassifications of 2021 amounts have been made to conform to the 2022 presentation. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or any other period.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the parent company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. Assets held for customers in a fiduciary or agency capacity are not assets of the Company and, accordingly, other than trust cash on deposit with the Bank, are not included in the accompanying unaudited balance sheets.
Accounting Guidance Issued But Not Yet Adopted	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. FASB ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures – In March 2022, the FASB issued ASU No. 2022-02, which 1) eliminates the accounting guidance for troubled debt restructurings ("TDRs") by creditors while enhancing the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty; and 2) requires that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022 and the amendments should be applied prospectively, although the entity has the option to apply a modified retrospective transition method for the recognition and measurement of TDRs, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements.

INVESTMENT SECURITIES (Tables)

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Investment Securities Classified as Available for Sale

Investment securities available for sale at March 31, 2022 and December 31, 2021 were as follows:


	March 31, 2022
(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	$	66,534	$	—	$	3,410	$	—	$	63,124
U.S. government sponsored entities and U.S. agency securities	34,194		52		2,715		—		31,531
Mortgage-backed securities - agency	437,125		620		34,758		—		402,987
Mortgage-backed securities - non-agency	27,174		—		2,072		—		25,102
State and municipal securities	139,619		1,779		4,816		—		136,582
Corporate securities	193,296		1,206		4,754		—		189,748
Total available for sale securities	$	897,942	$	3,657	$	52,525	$	—	$	849,074


	December 31, 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 available for sale securities	$	904,695	$	11,505	$	9,376	$	221	$	906,603

Debt Securities, Available-for-sale


(dollars in thousands)	Amortized cost		Fair value
Investment securities available for sale
Within one year	$	13,864	$	13,999
After one year through five years	143,470		139,722
After five years through ten years	237,281		230,606
After ten years	39,028		36,658
Mortgage-backed securities	464,299		428,089
Total available for sale securities	$	897,942	$	849,074

Allowance for Credit Loss Rollforward


(dollars in thousands)	Mortgage-backed securities - non-agency		State and municipal securities		Corporate securities		Total
Changes in allowance for credit losses on investment securities available for sale:
For the three months ended March 31, 2022
Balance, beginning of period	$	—	$	—	$	221	$	221
Current-period recapture of expected credit losses	—		—		(221)		(221)
Balance, end of period	$	—	$	—	$	—	$	—
For the three months ended March 31, 2021
Balance, beginning of period	$	—	$	29	$	337	$	366
Current-period provision for (recapture of) expected credit losses	28		(1)		123		150
Balance, end of period	$	28	$	28	$	460	$	516

Schedule of Unrealized Losses and Fair Values for Investment Securities


	March 31, 2022
	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	$	63,124	$	3,410	$	—	$	—	$	63,124	$	3,410
U.S. government sponsored entities and U.S. agency securities	17,050		1,319		8,603		1,396		25,653		2,715
Mortgage-backed securities - agency	249,809		21,437		113,330		13,321		363,139		34,758
Mortgage-backed securities - non-agency	19,740		1,410		5,362		662		25,102		2,072
State and municipal securities	57,628		4,431		3,845		385		61,473		4,816
Corporate securities	103,496		4,646		2,869		108		106,365		4,754
Total available for sale securities	$	510,847	$	36,653	$	134,009	$	15,872	$	644,856	$	52,525


	December 31, 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 available for sale securities	$	451,195	$	7,977	$	21,021	$	932	$	472,216	$	8,909

Schedule of Realized Gain (Loss)

Net unrealized gains and losses on equity securities for the three months ended March 31, 2022 and 2021 are summarized below:


	Three Months Ended March 31,
(dollars in thousands)	2022		2021
Equity securities



Net unrealized (losses) gains	$	(522)	$	81

LOANS (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Summary of Loans

The following table presents total loans outstanding by portfolio class, as of March 31, 2022 and December 31, 2021:


(dollars in thousands)	March 31, 2022		December 31, 2021
Commercial:
Commercial	$	796,498	$	770,670
Commercial other	641,627		679,518
Commercial real estate:
Commercial real estate non-owner occupied	1,291,239		1,105,333
Commercial real estate owner occupied	499,871		469,658
Multi-family	252,507		171,875
Farmland	70,424		69,962
Construction and land development	188,668		193,749
Total commercial loans	3,740,834		3,460,765
Residential real estate:
Residential first lien	268,787		274,412
Other residential	60,544		63,739
Consumer:
Consumer	101,692		106,008
Consumer other	939,104		896,597
Lease financing	429,000		423,280
Total loans, gross	$	5,539,961	$	5,224,801

Schedule Of Changes In Financing Receivable Related Parties Roll Forward

The new loans, other additions, repayments and other reductions for the three months ended March 31, 2022 and 2021, are summarized as follows:


	Three Months Ended March 31,
(dollars in thousands)	2022		2021
Beginning balance	$	13,869	$	19,693
New loans and other additions	9,805		543
Repayments and other reductions	(300)		(864)
Ending balance	$	23,374	$	19,372

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

The following table represents, by loan portfolio segment, a summary of changes in the allowance for credit losses on loans for the three months ended March 31, 2022 and 2021:


	Commercial Loan Portfolio						Other Loan Portfolio
(dollars in thousands)	Commercial		Commercial real estate		Construction and land development		Residential real estate		Consumer		Lease financing		Total
Changes in allowance for credit losses on loans for the three months ended March 31, 2022:
Balance, beginning of period	$	14,375	$	22,993	$	972	$	2,695	$	2,558	$	7,469	$	51,062
Provision for credit losses on loans	389		3,444		(156)		584		257		(386)		4,132
Charge-offs	(2,154)		(227)		(6)		(104)		(305)		(206)		(3,002)
Recoveries	11		67		6		113		162		387		746
Balance, end of period	$	12,621	$	26,277	$	816	$	3,288	$	2,672	$	7,264	$	52,938

Changes in allowance for credit losses on loans for the three months ended March 31, 2021:
Balance, beginning of period	$	19,851	$	25,465	$	1,433	$	3,929	$	2,338	$	7,427	$	60,443
Provision for credit losses on loans	(2,021)		7,127		11		68		53		(1,288)		3,950
Charge-offs	(506)		(773)		(271)		(110)		(242)		(253)		(2,155)
Recoveries	15		2		66		94		122		150		449
Balance, end of period	$	17,339	$	31,821	$	1,239	$	3,981	$	2,271	$	6,036	$	62,687

Schedule of Transitioning Risk States for Each Asset Pool within the Expected Credit Loss Model

The below table illustrates the transition matrix:


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

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

The following table presents amortized cost basis of individually evaluated loans on nonaccrual status as of March 31, 2022 and December 31, 2021:


	March 31, 2022						December 31, 2021
(dollars in thousands)	Nonaccrual with allowance		Nonaccrual with no allowance		Total nonaccrual		Nonaccrual with allowance		Nonaccrual with no allowance		Total nonaccrual
Commercial:
Commercial	$	4,463	$	2,275	$	6,738	$	4,681	$	2,275	$	6,956
Commercial other	3,248		—		3,248		4,467		—		4,467
Commercial real estate:
Commercial real estate non-owner occupied	1,992		21,344		23,336		1,914		9,912		11,826
Commercial real estate owner occupied	3,059		1,340		4,399		2,164		1,340		3,504
Multi-family	188		1,935		2,123		201		1,967		2,168
Farmland	153		—		153		155		—		155
Construction and land development	262		—		262		83		—		83
Total commercial loans	13,365		26,894		40,259		13,665		15,494		29,159
Residential real estate:
Residential first lien	3,197		753		3,950		3,116		832		3,948
Other residential	926		—		926		836		—		836
Consumer:
Consumer	97		—		97		110		—		110

Lease financing	1,454		—		1,454		1,510		—		1,510
Total loans	$	19,039	$	27,647	$	46,686	$	19,237	$	16,326	$	35,563

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 March 31, 2022 and December 31, 2021:


	Type of Collateral
(dollars in thousands)	Real Estate		Blanket Lien		Equipment		Total
March 31, 2022
Commercial
Commercial	$	—	$	4,890	$	—	$	4,890
Commercial Other	—		245		939		1,184
Commercial Real Estate
Non-Owner Occupied	23,013		—		—		23,013
Owner Occupied	1,336		—		—		1,336
Multi-Family	1,937		—		—		1,937




Total Collateral Dependent Loans	$	26,286	$	5,135	$	939	$	32,360

December 31, 2021
Commercial
Commercial	$	—	$	5,402	$	—	$	5,402
Commercial Other	—		—		502		502
Commercial Real Estate
Non-Owner Occupied	11,604		—		—		11,604
Owner Occupied	1,336		—		—		1,336
Multi-Family	1,969		—		—		1,969




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

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 March 31, 2022 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	$	281	$	25	$	759	$	1,065	$	6,738	$	788,695	$	796,498
Commercial other	3,070		1,730		—		4,800		3,248		633,579		641,627
Commercial real estate:
Commercial real estate non-owner occupied	131		441		—		572		23,336		1,267,331		1,291,239
Commercial real estate owner occupied	129		—		—		129		4,399		495,343		499,871
Multi-family	14,465		—		—		14,465		2,123		235,919		252,507
Farmland	709		6		—		715		153		69,556		70,424
Construction and land development	—		—		—		—		262		188,406		188,668
Total commercial loans	18,785		2,202		759		21,746		40,259		3,678,829		3,740,834
Residential real estate:
Residential first lien	207		47		—		254		3,950		264,583		268,787
Other residential	9		91		—		100		926		59,518		60,544
Consumer:
Consumer	84		4		—		88		97		101,507		101,692
Consumer other	3,452		2,339		70		5,861		—		933,243		939,104
Lease financing	1,505		319		—		1,824		1,454		425,722		429,000
Total loans	$	24,042	$	5,002	$	829	$	29,873	$	46,686	$	5,463,402	$	5,539,961

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		Nonaccrual		Current		Total
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

Summary of TDRs Loans


	March 31, 2022						December 31, 2021
(dollars in thousands)	Accruing (1)		Non-accrual (2)		Total		Accruing (1)		Non-accrual (2)		Total
Commercial	$	1,275	$	1,220	$	2,495	$	833	$	1,422	$	2,255
Commercial real estate	109		3,143		3,252		1,522		3,302		4,824
Construction and land development	34		—		34		37		—		37
Residential real estate	2,861		872		3,733		3,128		784		3,912
Consumer	175		—		175		98		—		98
Lease financing	931		520		1,451		1,394		241		1,635
Total loans	$	5,385	$	5,755	$	11,140	$	7,012	$	5,749	$	12,761

(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 three months ended March 31, 2022
Troubled debt restructurings:
Number of loans	2		—		—		3		3		2		10
Pre-modification outstanding balance	$	645	$	—	$	—	$	200	$	79	$	91	$	1,015
Post-modification outstanding balance	645		—		—		178		79		91		993





For the three months ended March 31, 2021
Troubled debt restructurings:
Number of loans	—		—		1		2		2		—		5
Pre-modification outstanding balance	$	—	$	—	$	49	$	55	$	31	$	—	$	135
Post-modification outstanding balance	—		—		40		56		31		—		127

Schedule of Loans Credit Equality Indicators

The following tables present the recorded investment of the commercial loan portfolio by risk category as of March 31, 2022 and December 31, 2021:


			March 31, 2022
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2022		2021		2020		2019		2018		Prior		Revolving loans		Total
Commercial	Commercial	Acceptable credit quality	$	35,988	$	102,759	$	78,574	$	44,134	$	20,640	$	56,169	$	425,219	$	763,483
		Special mention	—		129		48		551		1,343		299		3,130		5,500
		Substandard	—		372		—		827		1,846		4,330		13,402		20,777
		Substandard – nonaccrual	—		340		—		240		174		463		5,521		6,738
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	35,988		103,600		78,622		45,752		24,003		61,261		447,272		796,498

	Commercial other	Acceptable credit quality	66,720		213,502		149,049		88,347		24,879		438		77,191		620,126
		Special mention	—		227		1,861		9,462		3,745		—		1,375		16,670
		Substandard	—		—		—		62		—		—		1,521		1,583
		Substandard – nonaccrual	—		355		72		2,466		350		—		5		3,248
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	66,720		214,084		150,982		100,337		28,974		438		80,092		641,627

Commercial real estate	Non-owner occupied	Acceptable credit quality	221,262		441,878		153,618		125,995		20,477		210,880		5,295		1,179,405
		Special mention	—		26		3,480		15,343		1,006		1,776		—		21,631
		Substandard	—		6,118		—		21,133		1,668		37,698		250		66,867
		Substandard – nonaccrual	—		134		989		6,013		12,779		3,421		—		23,336
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	221,262		448,156		158,087		168,484		35,930		253,775		5,545		1,291,239

	Owner occupied	Acceptable credit quality	50,665		140,875		67,486		47,486		39,078		123,447		1,345		470,382
		Special mention	—		146		—		182		161		4,585		32		5,106
		Substandard	—		4,188		593		10,676		—		4,228		299		19,984
		Substandard – nonaccrual	—		338		334		162		333		3,232		—		4,399
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	50,665		145,547		68,413		58,506		39,572		135,492		1,676		499,871

	Multi-family	Acceptable credit quality	99,607		77,047		19,938		504		25,326		15,591		1,556		239,569
		Special mention	—		—		—		—		—		—		—		—
		Substandard	—		975		—		—		—		9,840		—		10,815
		Substandard – nonaccrual	—		—		—		118		—		2,005		—		2,123
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	99,607		78,022		19,938		622		25,326		27,436		1,556		252,507

	Farmland	Acceptable credit quality	1,606		17,142		14,466		4,811		3,216		25,943		1,944		69,128
		Special mention	—		—		—		—		145		187		—		332
		Substandard	—		71		—		166		13		561		—		811
		Substandard – nonaccrual	—		—		—		—		103		—		50		153
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	1,606		17,213		14,466		4,977		3,477		26,691		1,994		70,424

Construction and land development		Acceptable credit quality	15,483		71,366		53,813		15,485		3,847		4,650		21,923		186,567
		Special mention	—		—		—		—		—		220		—		220
		Substandard	—		—		—		—		—		—		—		—
		Substandard – nonaccrual	—		—		—		223		—		39		—		262
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	163		1,257		36		—		—		163		—		1,619
		Subtotal	15,646		72,623		53,849		15,708		3,847		5,072		21,923		188,668

Total		Acceptable credit quality	491,331		1,064,569		536,944		326,762		137,463		437,118		534,473		3,528,660
		Special mention	—		528		5,389		25,538		6,400		7,067		4,537		49,459
		Substandard	—		11,724		593		32,864		3,527		56,657		15,472		120,837
		Substandard – nonaccrual	—		1,167		1,395		9,222		13,739		9,160		5,576		40,259
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	163		1,257		36		—		—		163		—		1,619
Total commercial loans			$	491,494	$	1,079,245	$	544,357	$	394,386	$	161,129	$	510,165	$	560,058	$	3,740,834


			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

The following tables present the recorded investment of our other loan portfolio based on the credit risk profile of loans that are performing and loans that are nonperforming as of March 31, 2022 and December 31, 2021:


			March 31, 2022
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
Residential real estate	Residential first lien	Performing	$	9,120	$	39,688	$	31,213	$	22,780	$	29,415	$	130,266	$	290	$	262,772
		Nonperforming	—		—		107		268		697		4,943		—		6,015
		Subtotal	9,120		39,688		31,320		23,048		30,112		135,209		290		268,787

	Other residential	Performing	533		569		644		1,384		1,782		2,340		51,570		58,822
		Nonperforming	—		—		—		10		10		227		1,475		1,722
		Subtotal	533		569		644		1,394		1,792		2,567		53,045		60,544

Consumer	Consumer	Performing	5,533		63,545		11,939		6,860		7,400		4,052		2,088		101,417
		Nonperforming	65		105		5		2		42		55		1		275
		Subtotal	5,598		63,650		11,944		6,862		7,442		4,107		2,089		101,692

	Consumer other	Performing	141,223		459,083		254,096		54,821		10,735		8,268		10,810		939,036
		Nonperforming	—		—		—		—		—		—		68		68
		Subtotal	141,223		459,083		254,096		54,821		10,735		8,268		10,878		939,104

Leases financing		Performing	52,071		137,002		115,102		77,931		36,775		7,734		—		426,615
		Nonperforming	—		—		529		672		1,049		135		—		2,385
		Subtotal	52,071		137,002		115,631		78,603		37,824		7,869		—		429,000

Total		Performing	208,480		699,887		412,994		163,776		86,107		152,660		64,758		1,788,662
		Nonperforming	65		105		641		952		1,798		5,360		1,544		10,465
Total other loans			$	208,545	$	699,992	$	413,635	$	164,728	$	87,905	$	158,020	$	66,302	$	1,799,127


			December 31, 2021
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2021		2020		2019		2018		2017		Prior		Revolving loans		Total
Residential real estate	Residential first lien	Performing	$	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

PREMISES AND EQUIPMENT, NET (Tables)

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Summary of Premises and Equipment

A summary of premises and equipment at March 31, 2022 and December 31, 2021 is as follows:


(dollars in thousands)	March 31, 2022		December 31, 2021
Land	$	15,603	$	15,696
Buildings and improvements	67,790		67,143
Furniture and equipment	33,491		33,545
Total	116,884		116,384
Accumulated depreciation	(47,138)		(45,592)
Premises and equipment, net	$	69,746	$	70,792

LEASES (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Summary of Information Related to Operating Leases

Information related to operating leases for the three months ended March 31, 2022 and 2021 was as follows:


	Three Months Ended March 31,
(dollars in thousands)	2022			2021
Operating lease cost	$	508		$	523
Operating cash flows from leases	606			783
Right-of-use assets obtained in exchange for lease obligations	121			80
Right-of-use assets derecognized due to terminations or impairment	—			(122)
Weighted average remaining lease term	7.43 years			8.16 years
Weighted average discount rate	2.87		%	2.91		%

Summary of Projected Minimum Rental Payments

The projected minimum rental payments under the terms of the leases as of March 31, 2022 were as follows:


(dollars in thousands)	Amount
Year ending December 31:
2022 remaining	$	1,643
2023	2,105
2024	1,799
2025	894
2026	763
Thereafter	4,251
Total future minimum lease payments	11,455
Less imputed interest	(1,197)
Total operating lease liabilities	$	10,258

LOAN SERVICING RIGHTS (Tables)

3 Months Ended

Mar. 31, 2022

Transfers and Servicing [Abstract]

Schedule of Other Mortgage Notes Serviced and Changes in our Mortgage Servicing Rights

A summary of loan servicing rights at March 31, 2022 and December 31, 2021 is as follows:


	March 31, 2022				December 31, 2021
(dollars in thousands)	Serviced Loans		Carrying Value		Serviced Loans		Carrying Value
Commercial FHA	$	2,573,048	$	26,111	$	2,650,531	$	27,386
SBA	47,675		716		50,043		774
Residential	287,963		657		302,618		705
Total	$	2,908,686	$	27,484	$	3,003,192	$	28,865

Changes in our commercial FHA loan servicing rights for the three months ended March 31, 2022 and 2021 are summarized as follows:


	Three Months Ended March 31,
(dollars in thousands)	2022		2021
Loan servicing rights:
Balance, beginning of period	$	27,386	$	38,322

Amortization	(660)		(783)
Refinancing fee received from third party	(221)		(267)
Permanent impairment	(394)		(1,275)
Balance, end of period	$	26,111	$	35,997






Fair value:
At beginning of period	$	28,368	$	38,322
At end of period	$	27,941	$	35,997

GOODWILL AND INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

The carrying amount of goodwill by segment at March 31, 2022 and December 31, 2021 is summarized as follows:


(dollars in thousands)	March 31, 2022		December 31, 2021
Banking	$	157,158	$	157,158

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

The Company’s intangible assets, consisting of core deposit and customer relationship intangibles, as of March 31, 2022 and December 31, 2021 are summarized as follows:


	March 31, 2022						December 31, 2021
(dollars in thousands)	Gross carrying amount		Accumulated amortization		Total		Gross carrying amount		Accumulated amortization		Total
Core deposit intangibles	$	57,012	$	(41,667)	$	15,345	$	57,012	$	(40,603)	$	16,409
Customer relationship intangibles	15,918		(8,287)		7,631		15,918		(7,953)		7,965
Total intangible assets	$	72,930	$	(49,954)	$	22,976	$	72,930	$	(48,556)	$	24,374

DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments, Fair Value and Notional Amounts


	Notional amount				Fair value gain
(dollars in thousands)	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Derivative instruments (included in other assets):
Interest rate lock commitments	$	26,485	$	66,216	$	148	$	410
Forward commitments to sell mortgage-backed securities	24,940		60,427		296		—
Total	$	51,425	$	126,643	$	444	$	410


	Notional amount				Fair value loss
(dollars in thousands)	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Derivative instruments (included in other liabilities):

Forward commitments to sell mortgage-backed securities	$	—	$	18,362	$	—	$	19

The following table summarizes the Company's receive-fixed, pay-variable interest rate swaps on certain pools of loans indexed to prime at March 31, 2022:


(dollars in thousands)	March 31, 2022
Notional Amount	$	200,000
Average remaining life in years	4.13 years
Weighted average pay rate	3.50		%
Weighted average receive rate	5.48		%

DEPOSITS (Tables)

3 Months Ended

Mar. 31, 2022

Deposits [Abstract]

Schedule Summarizes the Classification of Deposits

The following table summarizes the classification of deposits as of March 31, 2022 and December 31, 2021:


(dollars in thousands)	March 31, 2022		December 31, 2021
Noninterest-bearing demand	$	1,965,032	$	2,245,701
Interest-bearing:
Checking	1,779,018		1,663,021
Money market	964,352		869,067
Savings	710,955		679,115
Time	638,182		653,744
Total deposits	$	6,057,539	$	6,110,648

- 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)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of Short Term Borrowings

The following table presents the distribution of short-term borrowings and related weighted average interest rates as of March 31, 2022 and December 31, 2021:


	Repurchase agreements
(dollars in thousands)	As of and for the Three Months Ended March 31, 2022			As of and for the Year Ended December 31, 2021
Outstanding at period-end	$	60,352		$	76,803
Average amount outstanding	70,043			68,986
Maximum amount outstanding at any month end	76,807			77,497
Weighted average interest rate:
During period	0.14		%	0.12		%
End of period	0.15		%	0.13		%

FHLB ADVANCES AND OTHER BORROWINGS (Tables)

3 Months Ended

Mar. 31, 2022

FHLB ADVANCES AND OTHER BORROWINGS

Schedule of Federal Home Loan Bank (FHLB) Advances

The following table summarizes our FHLB advances and other borrowings as of March 31, 2022 and December 31, 2021:


(dollars in thousands)	March 31, 2022		December 31, 2021
Midland States Bancorp, Inc.
Revolving line of credit - variable interest rate equivalent to Daily Simple SOFR plus 1.60%	$	—	$	—
Series G redeemable preferred stock - 171 shares at $1,000 per share	171		171
Midland States Bank
FHLB advances – putable fixed rate at rates averaging 1.48% at March 31, 2022 and December 31, 2021 – maturing through February 2030 with call provisions through May 2022	210,000		210,000
FHLB advances –SOFR floater at rates averaging 1.90% and 1.67% at March 31, 2022 and December 31, 2021, respectively – maturing in October 2023	100,000		100,000
Total FHLB advances and other borrowings	$	310,171	$	310,171

SUBORDINATED DEBT (Tables)

3 Months Ended

Mar. 31, 2022

Subordinated Borrowings [Abstract]

Schedule of Summary of Company's Subordinated Debt

The following table summarizes the Company’s subordinated debt as of March 31, 2022 and December 31, 2021:


(dollars in thousands)	March 31, 2022		December 31, 2021
Subordinated debt issued June 2015 – fixed interest rate of 6.50%, $550 - maturing June 18, 2025	$	546	$	546
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	39,642		39,626
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	72,107		72,042
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	26,889		26,877
Total subordinated debt	$	139,184	$	139,091

EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings per Common Share

Presented below are the calculations for basic and diluted earnings per common share for the three months ended March 31, 2022 and 2021:


	Three Months Ended March 31,
(dollars in thousands, except per share data)	2022		2021
Net income	$	20,749	$	18,538



Common shareholder dividends	(6,389)		(6,237)
Unvested restricted stock award dividends	(75)		(64)
Undistributed earnings to unvested restricted stock awards	(163)		(125)
Undistributed earnings to common shareholders	$	14,122	$	12,112
Basic
Distributed earnings to common shareholders	$	6,389	$	6,237
Undistributed earnings to common shareholders	14,122		12,112
Total common shareholders earnings, basic	$	20,511	$	18,349
Diluted
Distributed earnings to common shareholders	$	6,389	$	6,237
Undistributed earnings to common shareholders	14,122		12,112
Total common shareholders earnings	20,511		18,349
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	—		—
Total common shareholders earnings, diluted	$	20,511	$	18,349
Weighted average common shares outstanding, basic	22,274,884		22,522,983
Options	75,423		55,570
Weighted average common shares outstanding, diluted	22,350,307		22,578,553
Basic earnings per common share	$	0.92	$	0.81
Diluted earnings per common share	0.92		0.81

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured and Recorded at Fair Value


	March 31, 2022
(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	$	63,124	$	63,124	$	—	$	—
U.S. government sponsored entities and U.S. agency securities	31,531		—		31,531		—
Mortgage-backed securities - agency	402,987		—		402,987		—
Mortgage-backed securities - non-agency	25,102		—		25,102		—
State and municipal securities	136,582		—		136,582		—
Corporate securities	189,748		—		188,813		935
Equity securities	9,172		9,172		—		—
Loans held for sale	8,931		—		8,931		—
Derivative assets	10,654		—		10,654		—

Total	$	877,831	$	72,296	$	804,600	$	935
Liabilities
Derivative liabilities	$	10	$	—	$	10	$	—

Total	$	10	$	—	$	10	$	—

Assets measured at fair value on a non-recurring basis:
Loan servicing rights	$	27,484	$	—	$	—	$	27,484

Nonperforming loans	47,009		34,448		5,770		6,791
Other real estate owned	11,537		—		11,537		—
Assets held for sale	1,740		—		1,740		—


	December 31, 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		—
Derivative assets	5,883		—		5,883		—

Total	$	954,060	$	74,446	$	878,679	$	935
Liabilities
Derivative liabilities	$	397	$	—	$	397	$	—

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		—

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


	Three Months Ended March 31,
(dollars in thousands)	2022		2021
Balance, beginning of period	$	935	$	959
Total realized in earnings (1)	4		2
Total unrealized in other comprehensive income (2)	—		—
Net settlements (principal and interest)	(4)		(2)
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.

Schedule Presents Quantitative Information about Significant Unobservable Inputs

(dollars in thousands)

Fair value

Valuation
technique

Unobservable
input / assumptions

Range (weighted average)(1)

March 31, 2022

Corporate securities

935

Consensus pricing

Net market price

0.0% - 4.3% (2.8)%

December 31, 2021

Corporate securities

935

Consensus pricing

Net market price

0.0% - 7.0% (4.5)%

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

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

The following table presents losses recognized on assets measured on a nonrecurring basis for the three months ended March 31, 2022 and 2021:


	Three Months Ended March 31,
(dollars in thousands)	2022		2021
Loan servicing rights	$	394	$	1,275

Nonperforming loans	1,930		1,977
Other real estate owned	337		103

Total losses on assets measured on a nonrecurring basis	$	2,661	$	3,355

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)(1)

March 31, 2022

Loan servicing rights:

Commercial MSR

27,941

Discounted cash flow

Prepayment speed

8.00% - 18.00% (8.21%)

Discount rate

10.00% - 27.00% (11.87%)

SBA servicing rights

884

Discounted cash flow

Prepayment speed

13.84% - 15.76% (15.47%)

Discount rate

10.00% - 12.00% (11.00%)

Residential MSR

2,188

Discounted cash flow

Prepayment speed

10.38% -26.28% (11.76%)

Discount rate

9.00% - 11.50% (10.13%)

Other:

Nonperforming loans

6,791

Fair value of collateral

Discount for type of property,

3.90% - 18.90% (5.25%)

age of appraisal and current status

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%)

MSR held for sale

705

Discounted cash flow

Prepayment speed

11.94% - 27.48% (14.94%)

Discount rate

9.00% - 11.50% (10.25%)

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

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


	March 31, 2022						December 31, 2021
(dollars in thousands)	Aggregate fair value		Difference		Contractual principal		Aggregate fair value		Difference		Contractual principal
Commercial loans held for sale	$	1,269	$	18	$	1,251	$	19,230	$	—	$	19,230
Residential loans held for sale	7,662		151		7,511		12,815		584		12,231

Total loans held for sale	$	8,931	$	169	$	8,762	$	32,045	$	584	$	31,461


	Three Months Ended March 31,
(dollars in thousands)	2022		2021
Commercial loans held for sale	$	18	$	(44)
Residential loans held for sale	(381)		(383)
Total loans held for sale	$	(363)	$	(427)

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

The carrying values and estimated fair value of certain financial instruments not carried at fair value at March 31, 2022 and December 31, 2021 were as follows:


	March 31, 2022
(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	$	326,086	$	326,086	$	326,086	$	—	$	—
Federal funds sold	6,178		6,178		6,178		—		—

Loans, net	5,487,023		5,409,425		—		—		5,409,425
Accrued interest receivable	19,831		19,831		—		19,831		—

Liabilities
Deposits	$	6,057,539	$	6,046,710	$	—	$	6,046,710	$	—
Short-term borrowings	60,352		60,352		—		60,352		—
FHLB and other borrowings	310,171		312,791		—		312,791		—
Subordinated debt	139,184		141,859		—		141,859		—
Trust preferred debentures	49,524		56,232		—		56,232		—
Accrued interest payable	2,178		2,178		—		2,178		—


	December 31, 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

- 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)

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of Loan Commitments

Loan commitments at March 31, 2022 and December 31, 2021 were as follows:


(dollars in thousands)	March 31, 2022		December 31, 2021
Commitments to extend credit	$	1,045,127	$	994,709
Financial guarantees – standby letters of credit	14,465		14,325

SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Financial Information

Selected business segment financial information for the three months ended March 31, 2022 and 2021 were as follows:


(dollars in thousands)	Banking		Wealth Management		Other		Total
Three Months Ended March 31, 2022
Net interest income (expense)	$	59,353	$	—	$	(2,526)	$	56,827
Provision for credit losses	4,167		—		—		4,167
Noninterest income	8,406		7,139		68		15,613
Noninterest expense	36,247		4,675		(38)		40,884
Income (loss) before income taxes (benefit)	27,345		2,464		(2,420)		27,389
Income taxes (benefit)	6,715		690		(765)		6,640
Net income (loss)	$	20,630	$	1,774	$	(1,655)	$	20,749
Total assets	$	7,355,117	$	29,828	$	(46,230)	$	7,338,715

Three Months Ended March 31, 2021
Net interest income (expense)	$	54,718	$	—	$	(2,850)	$	51,868
Provision for credit losses	3,565		—		—		3,565
Noninterest income	8,864		5,931		21		14,816
Noninterest expense	35,516		4,001		(438)		39,079
Income (loss) before income taxes (benefit)	24,501		1,930		(2,391)		24,040
Income taxes (benefit)	5,789		540		(827)		5,502
Net income (loss)	$	18,712	$	1,390	$	(1,564)	$	18,538
Total assets	$	6,912,750	$	29,513	$	(57,477)	$	6,884,786

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Summary of Noninterest Income, Segregated by Revenue

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2022 and 2021.


	Three Months Ended March 31,
(dollars in thousands)	2022		2021
Noninterest income - in-scope of Topic 606
Wealth management revenue:
Trust management/administration fees	$	5,982	$	4,459
Investment advisory fees	—		453
Investment brokerage fees	598		400
Other	559		619
Service charges on deposit accounts:
Nonsufficient fund fees	1,332		1,142
Other	736		684
Interchange revenues	3,280		3,375
Other income:
Merchant services revenue	356		337
Other	768		792
Noninterest income - out-of-scope of Topic 606	2,002		2,555
Total noninterest income	$	15,613	$	14,816

DISPOSITIONS AND ACQUISITONS (Details) - USD ($) $ in Millions	Jan. 25, 2022	Jun. 01, 2021	Dec. 31, 2021
Deposits \| FNBC
Business Acquisition
Fair value of assets under management	$ 86.0
Loans \| FNBC
Business Acquisition
Fair value of assets under management	$ 26.0
ATG Trust
Business Acquisition
Fair value of assets under management		$ 399.7
Total consideration		$ 2.7
Transaction and integration costs			$ 0.4

INVESTMENT SECURITIES - Classified (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Investment securities available for sale
Amortized cost	$ 897,942	$ 904,695
Gross unrealized gains	3,657	11,505
Gross unrealized losses	52,525	9,376
Allowance for credit losses	0	221	$ 516	$ 366
Fair value	849,074	906,603
U.S. Treasury securities
Investment securities available for sale
Amortized cost	66,534	65,347
Gross unrealized gains	0	0
Gross unrealized losses	3,410	430
Allowance for credit losses	0	0
Fair value	63,124	64,917
U.S. government sponsored entities and U.S. agency securities
Investment securities available for sale
Amortized cost	34,194	34,569
Gross unrealized gains	52	79
Gross unrealized losses	2,715	831
Allowance for credit losses	0	0
Fair value	31,531	33,817
Mortgage-backed securities - agency
Investment securities available for sale
Amortized cost	437,125	444,484
Gross unrealized gains	620	2,687
Gross unrealized losses	34,758	6,901
Allowance for credit losses	0	0
Fair value	402,987	440,270
Mortgage-backed securities - non-agency
Investment securities available for sale
Amortized cost	27,174	29,037
Gross unrealized gains	0	50
Gross unrealized losses	2,072	381
Allowance for credit losses	0	0	28	0
Fair value	25,102	28,706
State and municipal securities
Investment securities available for sale
Amortized cost	139,619	137,904
Gross unrealized gains	1,779	5,561
Gross unrealized losses	4,816	366
Allowance for credit losses	0	0	28	29
Fair value	136,582	143,099
Corporate securities
Investment securities available for sale
Amortized cost	193,296	193,354
Gross unrealized gains	1,206	3,128
Gross unrealized losses	4,754	467
Allowance for credit losses	0	221	$ 460	$ 337
Fair value	$ 189,748	$ 195,794

INVESTMENT SECURITIES - Amortized cost and fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Investment securities available for sale, Amortized cost
Within one year	$ 13,864
After one year through five years	143,470
After five years through ten years	237,281
After ten years	39,028
Mortgage-backed securities	464,299
Total available for sale securities	897,942	$ 904,695
Investment securities available for sale, Fair value
Within one year	13,999
After one year through five years	139,722
After five years through ten years	230,606
After ten years	36,658
Mortgage-backed securities	428,089
Total available for sale securities	$ 849,074	$ 906,603

INVESTMENT SECURITIES - Allowance for credit loss and unrealized losses and fair values (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Allowance for credit losses on investment securities available-for-sale
Beginning balance	$ 221	$ 366
Current-period recapture of expected credit losses	(221)	150
Ending balance	0	516
Fair value
Less than 12 Months, Fair value	510,847		$ 451,195
Less than 12 Months, Unrealized loss	36,653		7,977
12 Months or more, Fair value	134,009		21,021
12 Months or more, Unrealized loss	15,872		932
Total, Fair value	644,856		472,216
Total, Unrealized loss	52,525		8,909
U.S. Treasury securities
Allowance for credit losses on investment securities available-for-sale
Beginning balance	0
Ending balance	0
Fair value
Less than 12 Months, Fair value	63,124		64,917
Less than 12 Months, Unrealized loss	3,410		430
12 Months or more, Fair value	0		0
12 Months or more, Unrealized loss	0		0
Total, Fair value	63,124		64,917
Total, Unrealized loss	3,410		430
U.S. government sponsored entities and U.S. agency securities
Allowance for credit losses on investment securities available-for-sale
Beginning balance	0
Ending balance	0
Fair value
Less than 12 Months, Fair value	17,050		17,487
Less than 12 Months, Unrealized loss	1,319		263
12 Months or more, Fair value	8,603		9,432
12 Months or more, Unrealized loss	1,396		568
Total, Fair value	25,653		26,919
Total, Unrealized loss	2,715		831
Mortgage-backed securities - agency
Allowance for credit losses on investment securities available-for-sale
Beginning balance	0
Ending balance	0
Fair value
Less than 12 Months, Fair value	249,809		317,372
Less than 12 Months, Unrealized loss	21,437		6,633
12 Months or more, Fair value	113,330		9,051
12 Months or more, Unrealized loss	13,321		268
Total, Fair value	363,139		326,423
Total, Unrealized loss	34,758		6,901
Mortgage-backed securities - non-agency
Allowance for credit losses on investment securities available-for-sale
Beginning balance	0	0
Current-period recapture of expected credit losses	0	28
Ending balance	0	28
Fair value
Less than 12 Months, Fair value	19,740		24,095
Less than 12 Months, Unrealized loss	1,410		381
12 Months or more, Fair value	5,362		0
12 Months or more, Unrealized loss	662		0
Total, Fair value	25,102		24,095
Total, Unrealized loss	2,072		381
State and municipal securities
Allowance for credit losses on investment securities available-for-sale
Beginning balance	0	29
Current-period recapture of expected credit losses	0	(1)
Ending balance	0	28
Fair value
Less than 12 Months, Fair value	57,628		27,324
Less than 12 Months, Unrealized loss	4,431		270
12 Months or more, Fair value	3,845		2,538
12 Months or more, Unrealized loss	385		96
Total, Fair value	61,473		29,862
Total, Unrealized loss	4,816		366
Corporate securities
Allowance for credit losses on investment securities available-for-sale
Beginning balance	221	337
Current-period recapture of expected credit losses	(221)	123
Ending balance	0	$ 460
Fair value
Less than 12 Months, Fair value	103,496		0
Less than 12 Months, Unrealized loss	4,646		0
12 Months or more, Fair value	2,869		0
12 Months or more, Unrealized loss	108		0
Total, Fair value	106,365		0
Total, Unrealized loss	$ 4,754		$ 0

INVESTMENT SECURITIES - Narrative (Details)	3 Months Ended
INVESTMENT SECURITIES - Narrative (Details)	Mar. 31, 2022 USD ($) security	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales of investment securities available for sale	$ 0	$ 0
Number of securities in unrealized loss position (in security) \| security	264
Aggregate depreciation percentage	7.53%
Equity securities recorded at fair value	$ 9,172,000		$ 9,529,000
Proceeds from sales of equity securities	$ 0	$ 0

INVESTMENT SECURITIES - Equity securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Net unrealized (losses) gains	$ (522)	$ 81

LOANS - Summary of loans and credit losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Summary of loans
Loans	$ 5,539,961		$ 5,224,801
Net deferred loan fees	5,200		4,600
Unearned income	47,400		46,100
Loans held for sale	8,931		32,045
Proceeds from sales of loans held for sale	103,133	$ 332,685
Commercial Loan Portfolio
Summary of loans
Loans	3,740,834		3,460,765
Lease financing
Summary of loans
Loans	429,000		423,280
Commercial Real Estate, Residential Real Estate And Consumer Loans
Summary of loans
Proceeds from sales of loans held for sale	103,100	$ 332,700
Commercial \| Commercial Loan Portfolio
Summary of loans
Loans	796,498		770,670
Commercial other \| Commercial Loan Portfolio
Summary of loans
Loans	641,627		679,518
Commercial real estate non-owner occupied \| Commercial Loan Portfolio
Summary of loans
Loans	1,291,239		1,105,333
Commercial real estate owner occupied \| Commercial Loan Portfolio
Summary of loans
Loans	499,871		469,658
Multi-family \| Commercial Loan Portfolio
Summary of loans
Loans	252,507		171,875
Farmland \| Commercial Loan Portfolio
Summary of loans
Loans	70,424		69,962
Construction and land development \| Commercial Loan Portfolio
Summary of loans
Loans	188,668		193,749
Residential first lien \| Residential Portfolio Segment
Summary of loans
Loans	268,787		274,412
Other residential \| Residential Portfolio Segment
Summary of loans
Loans	60,544		63,739
Consumer \| Consumer
Summary of loans
Loans	101,692		106,008
Consumer other \| Consumer
Summary of loans
Loans	939,104		896,597
Payroll Protection Program \| Commercial Loan Portfolio
Summary of loans
Loans	22,900		52,500
Commercial FHA Warehouse Lines \| Commercial Loan Portfolio
Summary of loans
Loans	$ 84,000		$ 91,900

LOANS - Loans to Directors, Executive Officers, Principal Shareholders and Affiliates (Details) - Directors, Executive Officers, Principal Shareholders and Affiliates - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Related Party Transaction [Line Items]
Beginning balance	$ 23,374	$ 19,372	$ 13,869	$ 19,693
New loans and other additions	9,805	543
Repayments and other reductions	(300)	(864)
Ending balance	$ 23,374	$ 19,372

LOANS - Summary of changes in the ACL on loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Financing Receivable, Impaired [Line Items]
Balance, beginning of period	$ 51,062	$ 60,443
Provision for credit losses on loans	4,132	3,950
Charge-offs	(3,002)	(2,155)
Recoveries	746	449
Balance, end of period	52,938	62,687
Commercial Loan Portfolio \| Commercial
Financing Receivable, Impaired [Line Items]
Balance, beginning of period	14,375	19,851
Provision for credit losses on loans	389	(2,021)
Charge-offs	(2,154)	(506)
Recoveries	11	15
Balance, end of period	12,621	17,339
Commercial Loan Portfolio \| Commercial real estate
Financing Receivable, Impaired [Line Items]
Balance, beginning of period	22,993	25,465
Provision for credit losses on loans	3,444	7,127
Charge-offs	(227)	(773)
Recoveries	67	2
Balance, end of period	26,277	31,821
Commercial Loan Portfolio \| Construction and land development
Financing Receivable, Impaired [Line Items]
Balance, beginning of period	972	1,433
Provision for credit losses on loans	(156)	11
Charge-offs	(6)	(271)
Recoveries	6	66
Balance, end of period	816	1,239
Residential Portfolio Segment \| Residential real estate
Financing Receivable, Impaired [Line Items]
Balance, beginning of period	2,695	3,929
Provision for credit losses on loans	584	68
Charge-offs	(104)	(110)
Recoveries	113	94
Balance, end of period	3,288	3,981
Consumer \| Consumer
Financing Receivable, Impaired [Line Items]
Balance, beginning of period	2,558	2,338
Provision for credit losses on loans	257	53
Charge-offs	(305)	(242)
Recoveries	162	122
Balance, end of period	2,672	2,271
Lease financing
Financing Receivable, Impaired [Line Items]
Balance, beginning of period	7,469	7,427
Provision for credit losses on loans	(386)	(1,288)
Charge-offs	(206)	(253)
Recoveries	387	150
Balance, end of period	$ 7,264	$ 6,036

LOANS - Risk rating (Details)	3 Months Ended
LOANS - Risk rating (Details)	Mar. 31, 2022 region
Risk category
Number of main regions	4
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State One \| Minimum
Risk category
Consumer loans and equipment finance loans and leases days past due	0 days
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State One \| Maximum
Risk category
Consumer loans and equipment finance loans and leases days past due	14 days
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State Two \| Minimum
Risk category
Consumer loans and equipment finance loans and leases days past due	15 days
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State Two \| Maximum
Risk category
Consumer loans and equipment finance loans and leases days past due	29 days
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State Three \| Minimum
Risk category
Consumer loans and equipment finance loans and leases days past due	30 days
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State Three \| Maximum
Risk category
Consumer loans and equipment finance loans and leases days past due	59 days
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State Four \| Minimum
Risk category
Consumer loans and equipment finance loans and leases days past due	60 days
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State Four \| Maximum
Risk category
Consumer loans and equipment finance loans and leases days past due	89 days
Consumer Loans And Equipment Finance Loans And Leases \| Credit Risk State Default \| Minimum
Risk category
Consumer loans and equipment finance loans and leases days past due	90 days

LOANS - Non-accrual (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Nonaccrual
Nonaccrual with allowance	$ 19,039	$ 19,237
Nonaccrual with no allowance	27,647	16,326
Total nonaccrual	46,686	35,563
Threshold amount for non accrual loans	500
Commercial Loan Portfolio
Nonaccrual
Nonaccrual with allowance	13,365	13,665
Nonaccrual with no allowance	26,894	15,494
Total nonaccrual	40,259	29,159
Commercial Loan Portfolio \| Commercial
Nonaccrual
Nonaccrual with allowance	4,463	4,681
Nonaccrual with no allowance	2,275	2,275
Total nonaccrual	6,738	6,956
Commercial Loan Portfolio \| Commercial other
Nonaccrual
Nonaccrual with allowance	3,248	4,467
Nonaccrual with no allowance	0	0
Total nonaccrual	3,248	4,467
Commercial Loan Portfolio \| Commercial real estate non-owner occupied
Nonaccrual
Nonaccrual with allowance	1,992	1,914
Nonaccrual with no allowance	21,344	9,912
Total nonaccrual	23,336	11,826
Commercial Loan Portfolio \| Commercial real estate owner occupied
Nonaccrual
Nonaccrual with allowance	3,059	2,164
Nonaccrual with no allowance	1,340	1,340
Total nonaccrual	4,399	3,504
Commercial Loan Portfolio \| Multi-family
Nonaccrual
Nonaccrual with allowance	188	201
Nonaccrual with no allowance	1,935	1,967
Total nonaccrual	2,123	2,168
Commercial Loan Portfolio \| Farmland
Nonaccrual
Nonaccrual with allowance	153	155
Nonaccrual with no allowance	0	0
Total nonaccrual	153	155
Commercial Loan Portfolio \| Construction and land development
Nonaccrual
Nonaccrual with allowance	262	83
Nonaccrual with no allowance	0	0
Total nonaccrual	262	83
Residential Portfolio Segment \| Residential first lien
Nonaccrual
Nonaccrual with allowance	3,197	3,116
Nonaccrual with no allowance	753	832
Total nonaccrual	3,950	3,948
Residential Portfolio Segment \| Other residential
Nonaccrual
Nonaccrual with allowance	926	836
Nonaccrual with no allowance	0	0
Total nonaccrual	926	836
Consumer \| Consumer
Nonaccrual
Nonaccrual with allowance	97	110
Nonaccrual with no allowance	0	0
Total nonaccrual	97	110
Lease financing \| Lease financing
Nonaccrual
Nonaccrual with allowance	1,454	1,510
Nonaccrual with no allowance	0	0
Total nonaccrual	$ 1,454	$ 1,510

LOANS - Impaired Loans with interest recognized (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Interest income :
Interest income recognized on nonaccrual loans	$ 0	$ 0
Additional interest income that would have been recorded had they been current	800,000	700,000
Recognized interest income on loans modified under troubled debt restructurings	$ 100,000	$ 100,000

LOANS - Collateral dependent loans (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Summary of loans
Collateral dependent loans	$ 32,360	$ 20,813
Real Estate
Summary of loans
Collateral dependent loans	26,286	14,909
Blanket Lien
Summary of loans
Collateral dependent loans	5,135	5,402
Equipment
Summary of loans
Collateral dependent loans	939	502
Commercial \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	4,890	5,402
Commercial \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	0	0
Commercial \| Commercial Loan Portfolio \| Blanket Lien
Summary of loans
Collateral dependent loans	4,890	5,402
Commercial \| Commercial Loan Portfolio \| Equipment
Summary of loans
Collateral dependent loans	0	0
Commercial other \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	1,184	502
Commercial other \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	0	0
Commercial other \| Commercial Loan Portfolio \| Blanket Lien
Summary of loans
Collateral dependent loans	245	0
Commercial other \| Commercial Loan Portfolio \| Equipment
Summary of loans
Collateral dependent loans	939	502
Commercial real estate non-owner occupied \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	23,013	11,604
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	23,013	11,604
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Blanket Lien
Summary of loans
Collateral dependent loans	0	0
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Equipment
Summary of loans
Collateral dependent loans	0	0
Commercial real estate owner occupied \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	1,336	1,336
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	1,336	1,336
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Blanket Lien
Summary of loans
Collateral dependent loans	0	0
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Equipment
Summary of loans
Collateral dependent loans	0	0
Multi-family \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	1,937	1,969
Multi-family \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	1,937	1,969
Multi-family \| Commercial Loan Portfolio \| Blanket Lien
Summary of loans
Collateral dependent loans	0	0
Multi-family \| Commercial Loan Portfolio \| Equipment
Summary of loans
Collateral dependent loans	$ 0	$ 0

LOANS - TDRs by portfolio (Details) - USD ($)	3 Months Ended	12 Months Ended
LOANS - TDRs by portfolio (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Troubled debt restructuring
Allowance for loan losses on TDRs	$ 700,000	$ 700,000
Unfunded commitments	0	0
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	5,385,000	7,012,000
TDR's Nonaccrual	5,755,000	5,749,000
Total	11,140,000	12,761,000
COVID-19
Troubled debt restructuring
Modifications not considered TDRs	1,100,000	13,300,000
Commercial Loan Portfolio \| Commercial
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	1,275,000	833,000
TDR's Nonaccrual	1,220,000	1,422,000
Total	2,495,000	2,255,000
Commercial Loan Portfolio \| Commercial real estate
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	109,000	1,522,000
TDR's Nonaccrual	3,143,000	3,302,000
Total	3,252,000	4,824,000
Commercial Loan Portfolio \| Construction and land development
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	34,000	37,000
TDR's Nonaccrual	0	0
Total	34,000	37,000
Residential Portfolio Segment \| Residential real estate
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	2,861,000	3,128,000
TDR's Nonaccrual	872,000	784,000
Total	3,733,000	3,912,000
Consumer \| Consumer
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	175,000	98,000
TDR's Nonaccrual	0	0
Total	175,000	98,000
Lease financing
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	931,000	1,394,000
TDR's Nonaccrual	520,000	241,000
Total	$ 1,451,000	$ 1,635,000

LOANS - TDRs by portfolio - restructured and subsequently defaulted (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) loan	Mar. 31, 2021 USD ($) loan
Troubled debt restructurings:
Number of loans \| loan	10	5
Pre-modification outstanding balance	$ 1,015	$ 135
Post-modification outstanding balance	$ 993	$ 127
Commercial Loan Portfolio \| Commercial
Troubled debt restructurings:
Number of loans \| loan	2	0
Pre-modification outstanding balance	$ 645	$ 0
Post-modification outstanding balance	$ 645	$ 0
Commercial Loan Portfolio \| Commercial real estate
Troubled debt restructurings:
Number of loans \| loan	0	0
Pre-modification outstanding balance	$ 0	$ 0
Post-modification outstanding balance	$ 0	$ 0
Commercial Loan Portfolio \| Construction and land development
Troubled debt restructurings:
Number of loans \| loan	0	1
Pre-modification outstanding balance	$ 0	$ 49
Post-modification outstanding balance	$ 0	$ 40
Residential Portfolio Segment \| Residential real estate
Troubled debt restructurings:
Number of loans \| loan	3	2
Pre-modification outstanding balance	$ 200	$ 55
Post-modification outstanding balance	$ 178	$ 56
Consumer \| Consumer
Troubled debt restructurings:
Number of loans \| loan	3	2
Pre-modification outstanding balance	$ 79	$ 31
Post-modification outstanding balance	$ 79	$ 31
Lease financing
Troubled debt restructurings:
Number of loans \| loan	2	0
Pre-modification outstanding balance	$ 91	$ 0
Post-modification outstanding balance	$ 91	$ 0

PREMISES AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 116,884		$ 116,384
Accumulated depreciation	(47,138)		(45,592)
Premises and equipment, net	69,746		70,792
Depreciation on premises and equipment	1,255	$ 1,436
Land
Property, Plant and Equipment [Line Items]
Premises and equipment gross	15,603		15,696
Buildings and improvements
Property, Plant and Equipment [Line Items]
Premises and equipment gross	67,790		67,143
Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 33,491		$ 33,545

LEASES (Details) - USD ($) $ in Thousands	3 Months Ended
LEASES (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
LEASES
Operating lease right-of-use asset	$ 8,111		$ 8,428
Operating lease liabilities	$ 10,258		10,714
Renewal term of lease (in years)	10 years
Operating lease cost	$ 508	$ 523
Operating cash flows from leases	606	783
Right-of-use assets obtained in exchange for lease obligations	121	80
Right-of-use assets derecognized due to terminations or impairment	$ 0	$ (122)
Weighted average remaining lease term	7 years 5 months 4 days	8 years 1 month 28 days
Weighted average discount rate	2.87%	2.91%
Projected minimum rental payments
2022 remaining	$ 1,643
2023	2,105
2024	1,799
2025	894
2026	763
Thereafter	4,251
Total future minimum lease payments	11,455
Less imputed interest	(1,197)
Total operating lease liabilities	$ 10,258		$ 10,714
Minimum
LEASES
Remaining lease terms	3 months
Maximum
LEASES
Remaining lease terms	11 years

LOAN SERVICING RIGHTS - Loan Servicing Rights and Carrying Value (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Servicing Asset at Amortized Cost [Line Items]
Serviced Loans	$ 2,908,686	$ 3,003,192
Carrying Value	27,484	28,865
Commercial FHA mortgage loans
Servicing Asset at Amortized Cost [Line Items]
Serviced Loans	2,573,048	2,650,531
Carrying Value	26,111	27,386
SBA servicing rights
Servicing Asset at Amortized Cost [Line Items]
Serviced Loans	47,675	50,043
Carrying Value	716	774
Residential mortgage loans
Servicing Asset at Amortized Cost [Line Items]
Serviced Loans	287,963	302,618
Carrying Value	$ 657	$ 705

LOAN SERVICING RIGHTS - Changes in MSR (Details) - Commercial FHA mortgage loans - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Loan servicing rights:
Loan servicing rights, Beginning balance	$ 27,386	$ 38,322
Amortization	(660)	(783)
Refinancing fee received from third party	(221)	(267)
Permanent impairment	(394)	(1,275)
Loan servicing rights, Ending balance	26,111	35,997
Fair value, Beginning of period	27,941	35,997	$ 28,368	$ 38,322
Fair value, End of period	$ 27,941	$ 35,997

LOAN SERVICING RIGHTS - Narrative (Details)	3 Months Ended	12 Months Ended
LOAN SERVICING RIGHTS - Narrative (Details)	Mar. 31, 2022	Dec. 31, 2021
Transfers and Servicing [Abstract]
Prepayment rate	8.21%	8.24%
Discount rate	11.87%	11.87%

GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Goodwill [Line Items]
Goodwill	$ 161,904	$ 161,904
Banking
Goodwill [Line Items]
Goodwill	157,158	157,158
Wealth management
Goodwill [Line Items]
Goodwill	$ 4,746	$ 4,746

GOODWILL AND INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Finite-lived intangible assets
Gross carrying amount	$ 72,930		$ 72,930
Accumulated amortization	(49,954)		(48,556)
Total	22,976		24,374
Amortization of intangible assets	1,398	$ 1,515
Core deposit intangibles
Finite-lived intangible assets
Gross carrying amount	57,012		57,012
Accumulated amortization	(41,667)		(40,603)
Total	15,345		16,409
Customer relationship intangibles
Finite-lived intangible assets
Gross carrying amount	15,918		15,918
Accumulated amortization	(8,287)		(7,953)
Total	$ 7,631		$ 7,965

DERIVATIVE INSTRUMENTS - Interest Rate Lock Commitments and Forward Commitments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Other assets
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notational amount, asset	$ 51,425	$ 126,643
Fair value gain (loss)	444	410
Interest rate lock commitments \| Other assets
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notational amount, asset	26,485	66,216
Fair value gain (loss)	148	410
Forward commitments to sell mortgage-backed securities \| Other assets
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Notational amount, asset	24,940	60,427
Fair value gain (loss)	296	0
Forward commitments to sell mortgage-backed securities \| Other liabilities
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Fair value gain (loss)	0	(19)
Notional amount, liability	$ 0	$ 18,362

DERIVATIVE INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Derivative disclosures
Derivative, gain (loss) on derivative, net	$ 100	$ (500)
Stockholders' equity	644,986	635,467	$ 663,837	$ 621,391
Repayment of FHLB advance	50,000	500,008
Accumulated Gain (Loss), Net, Cash Flow Hedges
Derivative disclosures
Stockholders' equity	7,400		3,700
Other assets
Derivative disclosures
Notational amount, asset	51,425		126,643
Other assets \| Cash Flow Hedge
Derivative disclosures
Derivative liability	10,200
Other liabilities \| Cash Flow Hedge
Derivative disclosures
Derivative liability			5,100
Future Starting Receive Variable, Pay Fixed Interest Rate Swaps \| Cash Flow Hedge
Derivative disclosures
Notational amount, asset	140,000
Receive Fixed, Pay Variable Interest Rate Swaps \| Cash Flow Hedge
Derivative disclosures
Derivative, gain (loss) on derivative, net		300
Notational amount, asset	200,000,000
Derivative terminated		50,000
Repayment of FHLB advance		$ 50,000
Interest rate swap contracts
Derivative disclosures
Notional amount of interest rate swaps	7,800		7,900
Interest rate swap contracts \| Other liabilities
Derivative disclosures
Fair value of offsetting counterparty derivative instruments	$ 0		$ 400

DERIVATIVE INSTRUMENTS - Cash Flow Hedges (Details) - Cash Flow Hedge - Receive Fixed, Pay Variable Interest Rate Swaps $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Derivative disclosures
Notational amount, asset	$ 200,000.0
Average remaining life in years	4 years 1 month 17 days
Long
Derivative disclosures
Weighted average rate	3.50%
Short
Derivative disclosures
Weighted average rate	5.48%

DEPOSITS (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Classification of deposits
Noninterest-bearing demand	$ 1,965,032	$ 2,245,701
Interest-bearing:
Checking	1,779,018	1,663,021
Money market	964,352	869,067
Savings	710,955	679,115
Time	638,182	653,744
Total deposits	$ 6,057,539	$ 6,110,648

SHORT-TERM BORROWINGS (Details) - USD ($)	3 Months Ended	12 Months Ended
SHORT-TERM BORROWINGS (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Short-term Debt [Line Items]
Outstanding at period-end	$ 60,352,000	$ 76,803,000
Average amount outstanding	70,043,000	68,986,000
Maximum amount outstanding at any month end	$ 76,807,000	$ 77,497,000
Weighted average interest rate:
During period	0.14%	0.12%
End of period	0.15%	0.13%
Short-Term Borrowings
Investment securities pledged/collateralized for secured borrowings	$ 65,500,000	$ 78,300,000
Line of credit	0	0
Line of credit facility, maximum borrowing capacity	45,000,000
Commercial real estate
Short-Term Borrowings
Loans pledged as collateral	70,400,000	64,800,000
Federal Reserve Discount Window
Short-Term Borrowings
Line of credit	$ 64,800,000	$ 55,900,000

FHLB ADVANCES AND OTHER BORROWINGS (Details) - USD ($)	Oct. 12, 2021	Mar. 31, 2022	Dec. 31, 2021
FHLB ADVANCES AND OTHER BORROWINGS
Long term line of credit		$ 0	$ 0
Total FHLB advances and other borrowings		310,171,000	310,171,000
FHLB advances, collateral for mortgage and home equity line of credit loans		$ 2,350,000,000	$ 2,100,000,000
Series G Preferred Stock
FHLB ADVANCES AND OTHER BORROWINGS
Preferred stock, shares issued (in shares)		171	171
Preferred stock, par value (in dollars per share)		$ 1,000	$ 1,000
Midland States Bancorp, Inc. \| Revolving Credit Facility
FHLB ADVANCES AND OTHER BORROWINGS
Long term line of credit	$ 15,000,000	$ 0	$ 0
Midland States Bancorp, Inc. \| Revolving Credit Facility \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
FHLB ADVANCES AND OTHER BORROWINGS
Variable interest rate	1.60%
Midland States Bancorp, Inc. \| Series G Preferred Stock
FHLB ADVANCES AND OTHER BORROWINGS
Long term debt		171,000	171,000
Midland States Bank \| Fixed rate, fixed term maturing through May 2021
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings		$ 210,000,000	$ 210,000,000
Interest rate		1.48%	1.48%
Midland States Bank \| Putable fixed rate loan maturing through August 2021
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings		$ 100,000,000	$ 100,000,000
Midland States Bank \| Putable fixed rate loan maturing through August 2021 \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
FHLB ADVANCES AND OTHER BORROWINGS
Interest rate		1.90%	1.67%

SUBORDINATED DEBT (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
SUBORDINATED DEBT (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Subordinated Borrowing [Line Items]
Carrying amount	$ 139,184	$ 139,091
6.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Carrying amount	$ 546	$ 546
Debt Instrument, Interest Rate, Stated Percentage	6.50%	6.50%
Face amount	$ 550	$ 550
6.25% Subordinated Debt
Subordinated Borrowing [Line Items]
Carrying amount	$ 39,642	$ 39,626
Debt Instrument, Interest Rate, Stated Percentage	6.25%	6.25%
Face amount	$ 40,000	$ 40,000
5.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Carrying amount	$ 72,107	$ 72,042
Debt Instrument, Interest Rate, Stated Percentage	5.00%	5.00%
Face amount	$ 72,750	$ 72,750
5.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Carrying amount	$ 26,889	$ 26,877
Debt Instrument, Interest Rate, Stated Percentage	5.50%	5.50%
Face amount	$ 27,250	$ 27,250
LIBOR \| 6.25% Subordinated Debt
Subordinated Borrowing [Line Items]
Variable interest rate	4.23%	4.23%
Three month SOFR \| 5.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Variable interest rate	3.61%	3.61%
Three month SOFR \| 5.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Variable interest rate	4.05%	4.05%

EARNINGS PER SHARE - Narrative (Details) - shares	3 Months Ended
EARNINGS PER SHARE - Narrative (Details) - shares	Mar. 31, 2022	Mar. 31, 2021
Stock option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	15,597	77,556

EARNINGS PER SHARE - Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Net income	$ 20,749	$ 18,538
Common shareholder dividends	(6,389)	(6,237)
Unvested restricted stock award dividends	(75)	(64)
Undistributed earnings to unvested restricted stock awards	(163)	(125)
Undistributed earnings to common shareholders	14,122	12,112
Basic
Distributed earnings to common shareholders	6,389	6,237
Undistributed earnings to common shareholders	14,122	12,112
Total common shareholders earnings, basic	20,511	18,349
Diluted
Distributed earnings to common shareholders	6,389	6,237
Undistributed earnings to common shareholders	14,122	12,112
Total common shareholders earnings, basic	20,511	18,349
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	0	0
Total common shareholders earnings, diluted	$ 20,511	$ 18,349
Weighted average common shares outstanding, basic (in shares)	22,274,884	22,522,983
Options (in shares)	75,423	55,570
Weighted average common shares outstanding, diluted (in shares)	22,350,307	22,578,553
Basic earnings per common share (in dollars per share)	$ 0.92	$ 0.81
Diluted earnings per common share (in dollars per share)	$ 0.92	$ 0.81

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring basis (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Assets
Investment securities available for sale	$ 849,074		$ 906,603
Equity securities recorded at fair value	9,172		9,529
Loans held for sale	8,931		32,045
Losses recognized on assets measured on non-recurring basis
Loan servicing rights	(394)	$ (1,275)
U.S. Treasury securities
Assets
Investment securities available for sale	63,124		64,917
U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	31,531		33,817
Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	25,102		28,706
State and municipal securities
Assets
Investment securities available for sale	136,582		143,099
Corporate securities
Assets
Investment securities available for sale	189,748		195,794
Recurring member
Assets
Loans held for sale	8,931		32,045
Derivative assets	10,654		5,883
Total	877,831		954,060
Liabilities
Derivative liabilities	10		397
Total	10		397
Recurring member \| U.S. Treasury securities
Assets
Investment securities available for sale	63,124		64,917
Recurring member \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	31,531		33,817
Recurring member \| Mortgage-backed securities - agency
Assets
Investment securities available for sale	402,987		440,270
Recurring member \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	25,102		28,706
Recurring member \| State and municipal securities
Assets
Investment securities available for sale	136,582		143,099
Recurring member \| Corporate securities
Assets
Investment securities available for sale	189,748		195,794
Recurring member \| Equity securities
Assets
Equity securities recorded at fair value	9,172		9,529
Recurring member \| Level 1
Assets
Loans held for sale	0		0
Derivative assets	0		0
Total	72,296		74,446
Liabilities
Derivative liabilities	0		0
Total	0		0
Recurring member \| Level 1 \| U.S. Treasury securities
Assets
Investment securities available for sale	63,124		64,917
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 \| Equity securities
Assets
Equity securities recorded at fair value	9,172		9,529
Recurring member \| Level 2
Assets
Loans held for sale	8,931		32,045
Derivative assets	10,654		5,883
Total	804,600		878,679
Liabilities
Derivative liabilities	10		397
Total	10		397
Recurring member \| Level 2 \| U.S. Treasury securities
Assets
Investment securities available for sale	0		0
Recurring member \| Level 2 \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	31,531		33,817
Recurring member \| Level 2 \| Mortgage-backed securities - agency
Assets
Investment securities available for sale	402,987		440,270
Recurring member \| Level 2 \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	25,102		28,706
Recurring member \| Level 2 \| State and municipal securities
Assets
Investment securities available for sale	136,582		143,099
Recurring member \| Level 2 \| Corporate securities
Assets
Investment securities available for sale	188,813		194,859
Recurring member \| Level 2 \| Equity securities
Assets
Equity securities recorded at fair value	0		0
Recurring member \| Level 3
Assets
Loans held for sale	0		0
Derivative assets	0		0
Total	935		935
Liabilities
Derivative liabilities	0		0
Total	0		0
Recurring member \| Level 3 \| U.S. Treasury securities
Assets
Investment securities available for sale	0		0
Recurring member \| Level 3 \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	0		0
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		935
Recurring member \| Level 3 \| Equity securities
Assets
Equity securities recorded at fair value	0		0
Non recurring member
Assets measured at fair value on a non-recurring basis:
Loan servicing rights	27,484		28,865
Nonperforming loans	47,009		36,542
Other real estate owned	11,537		12,059
Assets held for sale	1,740		2,284
Losses recognized on assets measured on non-recurring basis
Loan servicing rights	394	1,275
Nonperforming loans	1,930	1,977
Other real estate owned	337	103
Total loss on assets measured on a nonrecurring basis	2,661	$ 3,355
Non recurring member \| Level 1
Assets measured at fair value on a non-recurring basis:
Loan servicing rights	0		0
Nonperforming loans	34,448		24,358
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
Nonperforming loans	5,770		6,129
Other real estate owned	11,537		12,059
Assets held for sale	1,740		2,284
Non recurring member \| Level 3
Assets measured at fair value on a non-recurring basis:
Loan servicing rights	27,484		28,865
Nonperforming loans	6,791		6,055
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	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period	$ 935	$ 959
Total realized in earnings	4	2
Total unrealized in other comprehensive income	0	0
Net settlements (principal and interest)	(4)	(2)
Balance, end of period	$ 935	$ 959

FAIR VALUE OF FINANCIAL INSTRUMENTS - Quantitative Information (Details) $ in Thousands	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale	$ 849,074	$ 906,603
Non recurring member
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	27,484	28,865
Impaired loans	$ 47,009	$ 36,542
Level 3 \| Net market price \| Corporate securities \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale, measurement input	0.000	0.000
Level 3 \| Net market price \| Corporate securities \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale, measurement input	0.043	0.070
Level 3 \| Net market price \| Corporate securities \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale, measurement input	0.028	0.045
Level 3 \| Recurring member \| Net market price \| Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale	$ 935	$ 935
Level 3 \| Non recurring member
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	27,484	28,865
Impaired loans	$ 6,791	$ 6,055
Level 3 \| Non recurring member \| Prepayment speed \| Commercial MSR \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.0800	0.0800
Level 3 \| Non recurring member \| Prepayment speed \| Commercial MSR \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1800	0.1800
Level 3 \| Non recurring member \| Prepayment speed \| Commercial MSR \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.0821	0.0824
Level 3 \| Non recurring member \| Prepayment speed \| SBA servicing rights \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1384	0.1227
Level 3 \| Non recurring member \| Prepayment speed \| SBA servicing rights \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1576	0.1414
Level 3 \| Non recurring member \| Prepayment speed \| SBA servicing rights \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1547	0.1388
Level 3 \| Non recurring member \| Prepayment speed \| Residential MSR \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1038	0.1194
Level 3 \| Non recurring member \| Prepayment speed \| Residential MSR \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.2628	0.2748
Level 3 \| Non recurring member \| Prepayment speed \| Residential MSR \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1176	0.1494
Level 3 \| Non recurring member \| Discount rate \| Commercial MSR \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1000	0.1000
Level 3 \| Non recurring member \| Discount rate \| Commercial MSR \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.2700	0.2700
Level 3 \| Non recurring member \| Discount rate \| Commercial MSR \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1187	0.1187
Level 3 \| Non recurring member \| Discount rate \| SBA servicing rights \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1000	0.1000
Level 3 \| Non recurring member \| Discount rate \| SBA servicing rights \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1200	0.1200
Level 3 \| Non recurring member \| Discount rate \| SBA servicing rights \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1100	0.1100
Level 3 \| Non recurring member \| Discount rate \| Residential MSR \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.0900	0.0900
Level 3 \| Non recurring member \| Discount rate \| Residential MSR \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1150	0.1150
Level 3 \| Non recurring member \| Discount rate \| Residential MSR \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1013	0.1025
Level 3 \| Non recurring member \| Discount for type of property, \| Impaired loans \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount for type of property, age of appraisal and current status	0.0390
Level 3 \| Non recurring member \| Discount for type of property, \| Impaired loans \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount for type of property, age of appraisal and current status	0.1890
Level 3 \| Non recurring member \| Discount for type of property, \| Impaired loans \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount for type of property, age of appraisal and current status	0.0525
Level 3 \| Non recurring member \| Discounted cash flow \| Commercial MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	$ 27,941	$ 28,368
Level 3 \| Non recurring member \| Discounted cash flow \| SBA servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	884	898
Level 3 \| Non recurring member \| Discounted cash flow \| Residential MSR
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	2,188	$ 705
Level 3 \| Non recurring member \| Fair value of collateral \| Impaired loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	$ 6,791

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value option and gains and losses from fair value changes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	$ 8,931		$ 32,045
Difference	169		584
Contractual principal	8,762		31,461
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	(363)	$ (427)
Commercial Loan Portfolio
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	1,269		19,230
Difference	18		0
Contractual principal	1,251		19,230
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	18	(44)
Residential Portfolio Segment
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	7,662		12,815
Difference	151		584
Contractual principal	7,511		$ 12,231
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	$ (381)	$ (383)

FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying values and fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Assets
Accrued interest receivable	$ 19,831	$ 19,470
Liabilities
Trust preferred debentures	49,524	49,374
Level 1
Assets
Cash and due from banks	326,086	673,297
Federal funds sold	6,178	7,074
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	19,831	19,470
Liabilities
Deposits	6,046,710	6,109,077
Short-term borrowings	60,352	76,803
FHLB and other borrowings	312,791	317,464
Subordinated debt	141,859	148,386
Trust preferred debentures	56,232	57,827
Accrued interest payable	2,178	2,848
Level 3
Assets
Cash and due from banks	0	0
Federal funds sold	0	0
Loans, net	5,409,425	5,221,886
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
Carrying value
Assets
Cash and due from banks	326,086	673,297
Federal funds sold	6,178	7,074
Loans, net	5,487,023	5,173,739
Accrued interest receivable	19,831	19,470
Liabilities
Deposits	6,057,539	6,110,648
Short-term borrowings	60,352	76,803
FHLB and other borrowings	310,171	310,171
Subordinated debt	139,184	139,091
Trust preferred debentures	49,524	49,374
Accrued interest payable	2,178	2,848
Fair value
Assets
Cash and due from banks	326,086	673,297
Federal funds sold	6,178	7,074
Loans, net	5,409,425	5,221,886
Accrued interest receivable	19,831	19,470
Liabilities
Deposits	6,046,710	6,109,077
Short-term borrowings	60,352	76,803
FHLB and other borrowings	312,791	317,464
Subordinated debt	141,859	148,386
Trust preferred debentures	56,232	57,827
Accrued interest payable	$ 2,178	$ 2,848

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Anticipated material loss	$ 0
Losses as a result of make whole requests and loan repurchases	0	$ 0
Liability for unresolved repurchase demands	200,000		$ 200,000
Commitments to extend credit
Loan commitments	1,045,127,000		994,709,000
Financial guarantees – standby letters of credit
Loan commitments	$ 14,465,000		$ 14,325,000

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
Net interest income (expense)	$ 56,827	$ 51,868
Provision for credit losses	4,167	3,565
Noninterest income	15,613	14,816
Noninterest expense	40,884	39,079
Income before income taxes	27,389	24,040
Income taxes (benefit)	6,640	5,502
Net income	20,749	18,538
Total assets	7,338,715	6,884,786	$ 7,443,805
Banking
Segment Reporting Information [Line Items]
Net interest income (expense)	59,353	54,718
Provision for credit losses	4,167	3,565
Noninterest income	8,406	8,864
Noninterest expense	36,247	35,516
Income before income taxes	27,345	24,501
Income taxes (benefit)	6,715	5,789
Net income	20,630	18,712
Total assets	7,355,117	6,912,750
Wealth management
Segment Reporting Information [Line Items]
Net interest income (expense)	0	0
Provision for credit losses	0	0
Noninterest income	7,139	5,931
Noninterest expense	4,675	4,001
Income before income taxes	2,464	1,930
Income taxes (benefit)	690	540
Net income	1,774	1,390
Total assets	29,828	29,513
Other
Segment Reporting Information [Line Items]
Net interest income (expense)	(2,526)	(2,850)
Provision for credit losses	0	0
Noninterest income	68	21
Noninterest expense	(38)	(438)
Income before income taxes	(2,420)	(2,391)
Income taxes (benefit)	(765)	(827)
Net income	(1,655)	(1,564)
Total assets	$ (46,230)	$ (57,477)

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Total noninterest income	$ 15,613	$ 14,816
Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Noninterest income - out-of-scope of Topic 606	2,002	2,555
Total noninterest income	15,613	14,816
Trust management/administration fees \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	5,982	4,459
Investment advisory fees \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	0	453
Investment brokerage fees \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	598	400
Other \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	559	619
Nonsufficient fund fees \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	1,332	1,142
Other \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	736	684
Interchange revenues \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	3,280	3,375
Merchant services revenue \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	356	337
Other \| Calculated Under Revenue Guidance in Effect Before Topic 606
Disaggregation of Revenue [Line Items]
Revenue	$ 768	$ 792

LOANS - Aging Status of recorded investment (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Aging Status of recorded investment
Nonaccrual	$ 46,686	$ 35,563
Total	5,539,961	5,224,801
Nonperforming
Aging Status of recorded investment
Nonaccrual	46,686	35,563
30-59 days past due \| Performing
Aging Status of recorded investment
Total	24,042	10,069
60-89 days past due \| Performing
Aging Status of recorded investment
Total	5,002	7,445
Past due 90 days or more \| Performing
Aging Status of recorded investment
Total	829	6
Total past due \| Performing
Aging Status of recorded investment
Total	29,873	17,520
Current \| Performing
Aging Status of recorded investment
Total	5,463,402	5,171,718
Commercial Loan Portfolio
Aging Status of recorded investment
Nonaccrual	40,259	29,159
Total	3,740,834	3,460,765
Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Nonaccrual	40,259	29,159
Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Total	18,785	3,697
Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Total	2,202	4,386
Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Total	759	5
Commercial Loan Portfolio \| Total past due \| Performing
Aging Status of recorded investment
Total	21,746	8,088
Commercial Loan Portfolio \| Current \| Performing
Aging Status of recorded investment
Total	3,678,829	3,423,518
Lease financing
Aging Status of recorded investment
Total	429,000	423,280
Lease financing \| Performing
Aging Status of recorded investment
Total	426,615	420,376
Lease financing \| Nonperforming
Aging Status of recorded investment
Nonaccrual	1,454	1,510
Total	2,385	2,904
Lease financing \| 30-59 days past due \| Performing
Aging Status of recorded investment
Total	1,505	1,253
Lease financing \| 60-89 days past due \| Performing
Aging Status of recorded investment
Total	319	245
Lease financing \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Total	0	0
Lease financing \| Total past due \| Performing
Aging Status of recorded investment
Total	1,824	1,498
Lease financing \| Current \| Performing
Aging Status of recorded investment
Total	425,722	420,272
Commercial \| Commercial Loan Portfolio
Aging Status of recorded investment
Nonaccrual	6,738	6,956
Total	796,498	770,670
Commercial \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Nonaccrual	6,738	6,956
Commercial \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Total	281	283
Commercial \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Total	25	1,082
Commercial \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Total	759	0
Commercial \| Commercial Loan Portfolio \| Total past due \| Performing
Aging Status of recorded investment
Total	1,065	1,365
Commercial \| Commercial Loan Portfolio \| Current \| Performing
Aging Status of recorded investment
Total	788,695	762,349
Commercial other \| Commercial Loan Portfolio
Aging Status of recorded investment
Nonaccrual	3,248	4,467
Total	641,627	679,518
Commercial other \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Nonaccrual	3,248	4,467
Commercial other \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Total	3,070	2,402
Commercial other \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Total	1,730	2,110
Commercial other \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Total	0	5
Commercial other \| Commercial Loan Portfolio \| Total past due \| Performing
Aging Status of recorded investment
Total	4,800	4,517
Commercial other \| Commercial Loan Portfolio \| Current \| Performing
Aging Status of recorded investment
Total	633,579	670,534
Commercial real estate non-owner occupied \| Commercial Loan Portfolio
Aging Status of recorded investment
Nonaccrual	23,336	11,826
Total	1,291,239	1,105,333
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Nonaccrual	23,336	11,826
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Total	131	585
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Total	441	243
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Total	0	0
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Total past due \| Performing
Aging Status of recorded investment
Total	572	828
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Current \| Performing
Aging Status of recorded investment
Total	1,267,331	1,092,679
Commercial real estate owner occupied \| Commercial Loan Portfolio
Aging Status of recorded investment
Nonaccrual	4,399	3,504
Total	499,871	469,658
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Nonaccrual	4,399	3,504
Commercial real estate owner occupied \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Total	129	232
Commercial real estate owner occupied \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Total	0	730
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Total	0	0
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Total past due \| Performing
Aging Status of recorded investment
Total	129	962
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Current \| Performing
Aging Status of recorded investment
Total	495,343	465,192
Multi-family \| Commercial Loan Portfolio
Aging Status of recorded investment
Nonaccrual	2,123	2,168
Total	252,507	171,875
Multi-family \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Nonaccrual	2,123	2,168
Multi-family \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Total	14,465	0
Multi-family \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Total	0	0
Multi-family \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Total	0	0
Multi-family \| Commercial Loan Portfolio \| Total past due \| Performing
Aging Status of recorded investment
Total	14,465	0
Multi-family \| Commercial Loan Portfolio \| Current \| Performing
Aging Status of recorded investment
Total	235,919	169,707
Farmland \| Commercial Loan Portfolio
Aging Status of recorded investment
Nonaccrual	153	155
Total	70,424	69,962
Farmland \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Nonaccrual	153	155
Farmland \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Total	709	0
Farmland \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Total	6	26
Farmland \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Total	0	0
Farmland \| Commercial Loan Portfolio \| Total past due \| Performing
Aging Status of recorded investment
Total	715	26
Farmland \| Commercial Loan Portfolio \| Current \| Performing
Aging Status of recorded investment
Total	69,556	69,781
Construction and land development \| Commercial Loan Portfolio
Aging Status of recorded investment
Nonaccrual	262	83
Total	188,668	193,749
Construction and land development \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Nonaccrual	262	83
Construction and land development \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Total	0	195
Construction and land development \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Total	0	195
Construction and land development \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Total	0	0
Construction and land development \| Commercial Loan Portfolio \| Total past due \| Performing
Aging Status of recorded investment
Total	0	390
Construction and land development \| Commercial Loan Portfolio \| Current \| Performing
Aging Status of recorded investment
Total	188,406	193,276
Residential first lien \| Residential Portfolio Segment
Aging Status of recorded investment
Nonaccrual	3,950	3,948
Total	268,787	274,412
Residential first lien \| Residential Portfolio Segment \| Performing
Aging Status of recorded investment
Total	262,772	268,207
Residential first lien \| Residential Portfolio Segment \| Nonperforming
Aging Status of recorded investment
Nonaccrual	3,950	3,948
Total	6,015	6,205
Residential first lien \| Residential Portfolio Segment \| 30-59 days past due \| Performing
Aging Status of recorded investment
Total	207	113
Residential first lien \| Residential Portfolio Segment \| 60-89 days past due \| Performing
Aging Status of recorded investment
Total	47	285
Residential first lien \| Residential Portfolio Segment \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Total	0	0
Residential first lien \| Residential Portfolio Segment \| Total past due \| Performing
Aging Status of recorded investment
Total	254	398
Residential first lien \| Residential Portfolio Segment \| Current \| Performing
Aging Status of recorded investment
Total	264,583	270,066
Other residential \| Residential Portfolio Segment
Aging Status of recorded investment
Nonaccrual	926	836
Total	60,544	63,739
Other residential \| Residential Portfolio Segment \| Performing
Aging Status of recorded investment
Total	58,822	62,032
Other residential \| Residential Portfolio Segment \| Nonperforming
Aging Status of recorded investment
Nonaccrual	926	836
Total	1,722	1,707
Other residential \| Residential Portfolio Segment \| 30-59 days past due \| Performing
Aging Status of recorded investment
Total	9	456
Other residential \| Residential Portfolio Segment \| 60-89 days past due \| Performing
Aging Status of recorded investment
Total	91	151
Other residential \| Residential Portfolio Segment \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Total	0	0
Other residential \| Residential Portfolio Segment \| Total past due \| Performing
Aging Status of recorded investment
Total	100	607
Other residential \| Residential Portfolio Segment \| Current \| Performing
Aging Status of recorded investment
Total	59,518	62,296
Consumer \| Consumer
Aging Status of recorded investment
Nonaccrual	97	110
Total	101,692	106,008
Consumer \| Consumer \| Performing
Aging Status of recorded investment
Total	101,417	105,800
Consumer \| Consumer \| Nonperforming
Aging Status of recorded investment
Nonaccrual	97	110
Total	275	208
Consumer \| Consumer \| 30-59 days past due \| Performing
Aging Status of recorded investment
Total	84	127
Consumer \| Consumer \| 60-89 days past due \| Performing
Aging Status of recorded investment
Total	4	20
Consumer \| Consumer \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Total	0	0
Consumer \| Consumer \| Total past due \| Performing
Aging Status of recorded investment
Total	88	147
Consumer \| Consumer \| Current \| Performing
Aging Status of recorded investment
Total	101,507	105,751
Consumer other \| Consumer
Aging Status of recorded investment
Total	939,104	896,597
Consumer other \| Consumer \| Performing
Aging Status of recorded investment
Total	939,036	896,596
Consumer other \| Consumer \| Nonperforming
Aging Status of recorded investment
Nonaccrual	0	0
Total	68	1
Consumer other \| Consumer \| 30-59 days past due \| Performing
Aging Status of recorded investment
Total	3,452	4,423
Consumer other \| Consumer \| 60-89 days past due \| Performing
Aging Status of recorded investment
Total	2,339	2,358
Consumer other \| Consumer \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Total	70	1
Consumer other \| Consumer \| Total past due \| Performing
Aging Status of recorded investment
Total	5,861	6,782
Consumer other \| Consumer \| Current \| Performing
Aging Status of recorded investment
Total	933,243	889,815
Lease financing \| Lease financing
Aging Status of recorded investment
Nonaccrual	$ 1,454	$ 1,510