0001466026-23-000006 | 10-K | XBRL Viewer | Midland States Bancorp INC

Print Document View Excel Document

SHARE-BASED COMPENSATION - Options (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-Based Payment Arrangement [Abstract]
Cash received from options exercised	$ 2,061	$ 2,225	$ 707
Intrinsic value from options exercised	943	814	159
Tax benefit from options exercised	$ 198	$ 171	$ 32

GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

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


(dollars in thousands)	2022		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 December 31, 2022 and 2021 are summarized as follows:


	December 31, 2022						December 31, 2021
(dollars in thousands)	Gross carrying amount		Accumulated amortization		Total		Gross carrying amount		Accumulated amortization		Total
Core deposit intangibles	$	58,913	$	(44,723)	$	14,190	$	57,012	$	(40,603)	$	16,409
Customer relationship intangibles	15,919		(9,243)		6,676		15,918		(7,953)		7,965
Total intangible assets	$	74,832	$	(53,966)	$	20,866	$	72,930	$	(48,556)	$	24,374

In conjunction with the FNBC branch acquisition, the Company recorded $1.9 million of core deposit intangibles, which are being amortized on an accelerated basis over an estimated useful life of 10 years.

Amortization of intangible assets was $5.4 million, $5.9 million and $6.5 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Estimated amortization expense for future years is as follows:


(dollars in thousands)	Amount
Year ending December 31,
2023	$	4,758
2024	4,008
2025	3,223
2026	2,672
2027	2,101
Thereafter	4,104
Total	$	20,866

SHARE BASED COMPENSATION

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

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

Total compensation cost that has been charged against income under the plans was $2.2 million, $1.9 million and $2.2 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Restricted Stock

Restricted stock awards require certain service requirements and have a vesting period of four years. Compensation expense is recognized on a straight-line basis over the vesting period of the award based on the fair value of the stock at the date of grant.

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


	Number outstanding	Weighted average grant due fair value
Nonvested, beginning of year	261,818	$	23.62
Granted	121,316	28.34
Vested	(87,239)	24.20
Forfeited	(25,917)	23.83
Nonvested, end of year	269,978	$	25.53

As of December 31, 2022, there was $6.3 million of total unrecognized compensation cost related to nonvested restricted stock awards. The cost is expected to be recognized over a weighted average period of 3.1 years.

The total fair value of shares vested during the years ended December 31, 2022, 2021, and 2020 was $2.4 million, $2.1 million and $1.2 million, respectively.

Stock Options

The Company awards stock options to employees with an exercise price equal to the market price of the Company's common stock at the date of the grant and those awards, typically have a vesting period of four years and a ten-year contractual term.

The fair value of each option award is estimated on the date of grant using the Black-Scholes model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Nasdaq ABA Community Bank Index. The Company has elected to use the practical expedient of one-half the weighted average time to vest plus the contractual life to estimate the expected term. The Company estimates the impact of forfeitures based on historical experience. Should the Company's current estimate change, additional expense could be recognized or reversed in future periods. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

The Company did not grant stock options in the years ended December 31, 2021 and 2020. The fair value of options granted during the year ended December 31, 2022 was determined using the following weighted-average assumptions as of the grant date.


	2022
Dividend yield	4.24	%
Expected volatility	23.81	%
Risk free interest rate	4.23	%
Expected life	6.25 years

The summary of our stock option activity for the year ended December 31, 2022 is as follows:


	2022
	Shares	Weighted average exercise price		Weighted average remaining contractual life
Option outstanding, beginning of year	324,794	$	21.74
Options granted	220,730	28.43
Options exercised	(113,035)	18.24

Options expired	(16,917)	32.53
Options outstanding, end of year	415,572	25.81		6.5 years
Options exercisable	194,842	22.84		2.6 years
Options vested and expected to vest	415,572	25.81		6.5 years

The aggregate intrinsic value of options outstanding and exercisable as of December 31, 2022 was $0.8 million. As of December 31, 2022, there was $1.0 million of total unrecognized compensation cost related to nonvested stock options granted under our 2019 Incentive Plan. This cost is expected to be recognized over a period of 3.8 years. The weighted average fair value of stock options granted during the year ended December 31, 2022 was $4.92.

The following table includes information related to stock option exercises for the years ended December 31, 2022, 2021, and 2020.


(dollars in thousands)	2022		2021		2020
Cash received from options exercised	$	2,061	$	2,225	$	707
Intrinsic value from options exercised	943		814		159
Tax benefit from options exercised	198		171		32

LOAN SERVICING RIGHTS

12 Months Ended

Dec. 31, 2022

Transfers and Servicing [Abstract]

LOAN SERVICING RIGHTS

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


(dollars in thousands)	2022				2021
	Serviced Loans		Carrying Value		Serviced Loans		Carrying Value
Commercial FHA	$	—	$	—	$	2,650,531	$	27,386
SBA	46,081		656		50,043		774
Residential	255,298		549		302,618		705
Commercial FHA held for sale	2,255,617		20,745		—		—
Total	$	2,556,996	$	21,950	$	3,003,192	$	28,865

Commercial FHA Mortgage Loan Servicing

During the third quarter of 2022, the Company committed to a plan to sell our commercial FHA servicing portfolio and, therefore, transferred $24.0 million to commercial FHA servicing rights held for sale. Servicing rights held for sale are recorded at the lower of their carrying value or fair value less estimated costs to sell. At December 31, 2022, the $20.7 million carrying amount of the asset reflected its estimated fair value less estimated selling costs. Fair value was based on a letter of intent to purchase from an interested buyer. The Company recognized a $3.3 million loss on commercial FHA loan servicing rights held for sale in the fourth quarter of 2022 to write down the asset balance to the fair value based on the letter of intent sales price and estimated selling costs.

Prior to the transfer of the commercial FHA servicing rights to held for sale, the fair value of commercial FHA loan servicing rights was 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 considered many factors as appropriate, including lockouts, balloons, prepayment penalties, interest rate ranges, delinquencies, and geographic location. The discount rate was 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 and weighted average discount rate was 8.24% and 11.87% at December 31, 2021, respectively.

Changes in our commercial FHA loan servicing rights for the years ended 2022, 2021, and 2020 are summarized as follows:


	Years Ended December 31,
(dollars in thousands)		2022		2021		2020
Loan servicing rights:
Balance, beginning of period		$	27,386	$	38,322	$	57,637

Servicing rights transferred to held for sale		(23,995)		—		1,128
Amortization		(1,907)		(2,965)		(3,162)
Refinancing fee received from third party		(221)		(439)		—
Permanent impairment		(1,263)		(7,532)		(17,281)
Balance, end of period		$	—	$	27,386	$	38,322






Fair value:
At beginning of period		$	28,368	$	38,322	$	52,693
At end of period		—		28,368		38,322

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 30
-Section 50
-Paragraph 1A
-Subparagraph (c)(3)
-URI https://asc.fasb.org/extlink&oid=109249958&loc=SL6224234-111729

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 30
-Section 50
-Paragraph 1A
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=109249958&loc=SL6224234-111729

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 20
-Section 50
-Paragraph 3
-Subparagraph (b)(2)(ii)
-URI https://asc.fasb.org/extlink&oid=121570589&loc=d3e107207-111719

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 20
-Section 50
-Paragraph 3
-Subparagraph (cc)
-URI https://asc.fasb.org/extlink&oid=121570589&loc=d3e107207-111719

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=128311188&loc=d3e122596-111746

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
-Section 50
-Paragraph 3
-Subparagraph (a)(5)
-URI https://asc.fasb.org/extlink&oid=128311188&loc=d3e122625-111746

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 20
-Section 50
-Paragraph 4D
-Subparagraph (c)(3)
-URI https://asc.fasb.org/extlink&oid=121570589&loc=SL51823488-111719

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 20
-Section 50
-Paragraph 3
-Subparagraph (b)(2)(i)
-URI https://asc.fasb.org/extlink&oid=121570589&loc=d3e107207-111719

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
-Section 50
-Paragraph 4
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=128311188&loc=d3e122739-111746

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 20
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=121570589&loc=d3e107207-111719

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 30
-Section 50
-Paragraph 7
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=109249958&loc=SL34722452-111729

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
-Section 50
-Paragraph 3
-Subparagraph (a)(4)(ii)
-URI https://asc.fasb.org/extlink&oid=128311188&loc=d3e122625-111746

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 20
-Section 50
-Paragraph 4
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=121570589&loc=d3e107314-111719

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
-Section 50
-Paragraph 3
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=128311188&loc=d3e122625-111746

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 20
-Section 50
-Paragraph 4
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121570589&loc=d3e107314-111719

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-URI https://asc.fasb.org/topic&trid=2197590

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
-Section 50
-Paragraph 4
-Subparagraph (a)(7)
-URI https://asc.fasb.org/extlink&oid=128311188&loc=d3e122739-111746

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 20
-Section 50
-Paragraph 4
-Subparagraph (a)(5)(ii)
-URI https://asc.fasb.org/extlink&oid=121570589&loc=d3e107314-111719

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
-Section 50
-Paragraph 2
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=128311188&loc=d3e122596-111746

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 50
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=128311188&loc=d3e122596-111746

+ Details

DERIVATIVE INSTRUMENTS - Cash Flow Hedges (Details) - Cash Flow Hedge - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Receive Fixed, Pay Variable Interest Rate Swaps
Derivative disclosures
Notational amount, asset	$ 200,000
Fair value (loss included in other liabilities) gain included in other assets	(9,999)
Tax effected amount included in accumulated other comprehensive (loss) income	$ (7,300)
Average remaining life	3 years 4 months 13 days
Receive Fixed, Pay Variable Interest Rate Swaps \| Long
Derivative disclosures
Weighted average rate	7.23%
Receive Fixed, Pay Variable Interest Rate Swaps \| Short
Derivative disclosures
Weighted average rate	5.48%
Future Starting Receive Fixed, Pay Variable Interest Rate Swaps
Derivative disclosures
Notational amount, asset	$ 0	$ 140,000
Fair value (loss included in other liabilities) gain included in other assets	0	5,095
Tax effected amount included in accumulated other comprehensive (loss) income	$ 0	$ 3,694

SHARE-BASED COMPENSATION - Stock option plan (Detail)	12 Months Ended
SHARE-BASED COMPENSATION - Stock option plan (Detail)	Dec. 31, 2022 $ / shares shares
Number of shares
Options outstanding, beginning of year (in shares) \| shares	324,794
Options granted (in shares) \| shares	220,730
Options exercised (in shares) \| shares	(113,035)
Options expired (in shares) \| shares	(16,917)
Options outstanding, end of year (in shares) \| shares	415,572
Options exercisable (in shares) \| shares	194,842
Options vested and expected to vest (in shares) \| shares	415,572
Weighted average exercise price
Options outstanding, beginning of year (in dollars per share) \| $ / shares	$ 21.74
Options granted (in dollars per share) \| $ / shares	28.43
Options exercised (in dollars per share) \| $ / shares	18.24
Options expired (in dollars per share) \| $ / shares	32.53
Options outstanding, end of year (in dollars per share) \| $ / shares	25.81
Options exercisable (in dollars per share) \| $ / shares	22.84
Options vested and expected to vest (in dollars per share) \| $ / shares	$ 25.81
Options outstanding, end of year (in years)	6 years 6 months
Options exercisable (in years)	2 years 7 months 6 days
Options vested and expected to vest (in years)	6 years 6 months

FAIR VALUE OF FINANCIAL INSTRUMENTS - Quantitative Information (Details) $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale	$ 768,234	$ 906,603
Non recurring member
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	1,205	$ 28,865
Level 3 \| Net market price \| Corporate securities \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale, measurement input		0.0000
Level 3 \| Net market price \| Corporate securities \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale, measurement input		0.0700
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		0.0450
Level 3 \| Recurring member \| Net market price \| Corporate securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Investment securities available for sale		$ 935
Level 3 \| Non recurring member
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	1,205	28,865
Level 3 \| Non recurring member \| Discounted cash flow \| SBA servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	876	898
Level 3 \| Non recurring member \| Discounted cash flow \| Residential servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights	$ 2,770	705
Level 3 \| Non recurring member \| Discounted cash flow \| Commercial FHA servicing rights held for sale
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights		$ 28,368
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| SBA servicing rights \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1449	0.1227
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| SBA servicing rights \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1544	0.1414
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| SBA servicing rights \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1500	0.1388
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| Residential servicing rights \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.0756	0.1194
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| Residential servicing rights \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.2628	0.2748
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| Residential servicing rights \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.0792	0.1494
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| Commercial FHA servicing rights held for sale \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset		0.0800
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| Commercial FHA servicing rights held for sale \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset		0.1800
Level 3 \| Non recurring member \| Discounted cash flow \| Prepayment speed \| Commercial FHA servicing rights held for sale \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset		0.0824
Level 3 \| Non recurring member \| Discounted cash flow \| Discount rate \| SBA servicing rights \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset		0.1000
Level 3 \| Non recurring member \| Discounted cash flow \| Discount rate \| SBA servicing rights \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset		0.1200
Level 3 \| Non recurring member \| Discounted cash flow \| Discount rate \| SBA servicing rights \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1300	0.1100
Level 3 \| Non recurring member \| Discounted cash flow \| Discount rate \| Residential servicing rights \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.0900	0.0900
Level 3 \| Non recurring member \| Discounted cash flow \| Discount rate \| Residential servicing rights \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset	0.1150	0.1150
Level 3 \| Non recurring member \| Discounted cash flow \| Discount rate \| Residential servicing rights \| 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 \| Discounted cash flow \| Discount rate \| Commercial FHA servicing rights held for sale \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset		0.1000
Level 3 \| Non recurring member \| Discounted cash flow \| Discount rate \| Commercial FHA servicing rights held for sale \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset		0.2700
Level 3 \| Non recurring member \| Discounted cash flow \| Discount rate \| Commercial FHA servicing rights held for sale \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input for servicing asset		0.1187

SHORT-TERM BORROWINGS (Details) - USD ($)	12 Months Ended
SHORT-TERM BORROWINGS (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Short-term Debt [Line Items]
Outstanding at period-end	$ 42,311,000	$ 76,803,000
Average amount outstanding	58,688,000	68,986,000
Maximum amount outstanding at any month end	$ 76,807,000	$ 77,497,000
Weighted average interest rate:
During period	0.18%	0.12%
End of period	0.26%	0.13%
Short-Term Borrowings
Investment securities pledged/collateralized for secured borrowings	$ 46,100,000	$ 78,300,000
Line of credit	0	0
Loans	6,306,467,000	5,224,801,000
Line of credit facility, maximum borrowing capacity	394,000,000
Commercial real estate \| Asset Pledged as Collateral
Short-Term Borrowings
Loans	14,300,000	64,800,000
Federal Reserve Discount Window
Short-Term Borrowings
Line of credit	$ 12,200,000	$ 55,900,000

ACQUISITIONS

12 Months Ended

Dec. 31, 2022

Business Combinations [Abstract]

ACQUISITIONS

FNBC Bank & Trust

On June 17, 2022, the Company completed its branch acquisition from FNBC, whereby we acquired $79.8 million of deposits and $16.6 million of loans as well as other assets and liabilities associated with FNBC's branches in Mokena and Yorkville, Illinois. The acquisition was accounted for under the acquisition method of accounting. Accordingly, the Company recognized amounts for identified tangible and intangible assets acquired and liabilities assumed at their estimated acquisition date fair values, while $0.4 million of transaction and integration costs were expensed as incurred.

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


(dollars in thousands)	FNBC
Assets acquired:
Cash and cash equivalents	$	60,275
Loans	16,632
Premises and equipment, net	950
Accrued interest receivable	36
Intangible assets	1,901
Total assets acquired	$	79,794
Liabilities assumed:
Deposits	$	79,794
Total liabilities assumed	$	79,794
Intangible assets:
Core deposit intangible	$	1,901
Estimated useful life	10 years

ATG Trust Company

On June 1, 2021, the Company completed its acquisition of substantially all of the trust assets of ATG Trust, a trust company based in Chicago, Illinois, with approximately $399.7 million in assets under management. In aggregate, the Company acquired the assets of ATG Trust for $2.7 million in cash. The acquisition was accounted for under the acquisition method of accounting. Accordingly, the Company recognized amounts for identifiable assets acquired at their estimated acquisition date fair values, while $0.4 million of transaction and integration costs associated with the acquisition were expensed in 2021.

Commercial FHA Origination Platform

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

INVESTMENT SECURITIES - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Amortized cost
Within one year	$ 32,553
After one year through five years	130,347
After five years through ten years	135,682
After ten years	27,491
Mortgage-backed securities	546,950
Total available for sale securities	873,023	$ 904,695
Fair value
Within one year	32,151
After one year through five years	122,407
After five years through ten years	120,722
After ten years	24,050
Mortgage-backed securities	468,904
Total available for sale securities	768,234	906,603
Proceeds from sales of investment securities available for sale	136,403	14,777	$ 28,256
Gross realized gains on sales	829	537	1,721
Gross realized losses on sales	$ (1,059)	$ 0	$ 0

DEPOSITS - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021
Deposits [Abstract]
Time deposits $250,000 or more	$ 118.6	$ 143.5

DERIVATIVE INSTRUMENTS - Interest Rate Lock Commitments and Forward Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Fair value gain (loss)	$ (15)	$ (19)
Notional amount, liability	11,088	18,362
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	2,078	126,643
Fair value gain (loss)	49	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	2,078	66,216
Fair value gain (loss)	49	410
Interest rate lock commitments \| 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)	(15)	0
Notional amount, liability	4,419	0
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	0	60,427
Fair value gain (loss)	0	0
Forward commitments to sell mortgage-backed securities \| Other liabilities
Fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition
Fair value gain (loss)	0	(19)
Notional amount, liability	$ 6,669	$ 18,362

LOANS

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

LOANS

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


(dollars in thousands)	December 31, 2022		December 31, 2021
Commercial:
Commercial	$	786,877	$	770,670
Commercial other	727,697		679,518
Commercial real estate:
Commercial real estate non-owner occupied	1,591,399		1,105,333
Commercial real estate owner occupied	496,786		469,658
Multi-family	277,889		171,875
Farmland	67,085		69,962
Construction and land development	320,882		193,749
Total commercial loans	4,268,615		3,460,765
Residential real estate:
Residential first lien	304,243		274,412
Other residential	61,851		63,739
Consumer:
Consumer	105,880		106,008
Consumer other	1,074,134		896,597
Lease financing	491,744		423,280
Total loans	$	6,306,467	$	5,224,801

Total loans include net deferred loan costs of $4.4 million and $4.6 million at December 31, 2022 and December 31, 2021, respectively, and unearned discounts of $62.6 million and $46.1 million within the lease financing portfolio at December 31, 2022 and December 31, 2021, respectively.

At December 31, 2022, the Company had residential real estate loans held for sale totaling $1.3 million, compared to commercial real estate and residential real estate loans held for sale totaling $32.0 million at December 31, 2021. The Company

sold commercial real estate, residential real estate and consumer loans with proceeds totaling $270.0 million and $740.0 million during the years ended December 31, 2022 and 2021, respectively.

Classifications of Loan Portfolio

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

Commercial—Loans to varying types of businesses, including municipalities, school districts and nonprofit organizations, for the purpose of supporting working capital, operational needs and term financing of equipment. Repayment of such loans is generally provided through operating cash flows of the business. Commercial loans are predominately secured by equipment, inventory, accounts receivable, and other sources of repayment. PPP loans of $1.9 million and $52.5 million as of December 31, 2022 and December 31, 2021, respectively, and commercial FHA warehouse lines of $25.0 million and $91.9 million as of December 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 substantially the same terms, including collateralization and interest rates prevailing at the time. The aggregate loans outstanding to the Company's directors, executive officers, principal shareholders and their affiliates totaled $19.8 million and $13.9 million at December 31, 2022 and December 31, 2021, respectively. The new loans, other additions, repayments and other reductions for the years ended December 31, 2022 and 2021, are summarized as follows:


	Years Ended December 31,
(dollars in thousands)		2022		2021
Beginning balance		$	13,869	$	19,693
New loans and other additions		9,804		4,745
Repayments and other reductions		(3,897)		(10,569)
Ending balance		$	19,776	$	13,869

The following table represents, by loan portfolio segment, a summary of changes in the allowance for credit losses on loans for the years ended December 31, 2022, 2021 and 2020:


	Commercial Loan Portfolio						Other Loan Portfolio
(dollars in thousands)	Commercial		Commercial real estate		Construction and land development		Residential real estate		Consumer		Lease financing		Total







Changes in allowance for credit losses on loans for the year ended December 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	3,984		10,396		1,439		1,698		1,813		(533)		18,797
Charge-offs	(4,121)		(4,106)		(6)		(344)		(1,229)		(1,297)		(11,103)
Recoveries	401		7		30		252		457		1,148		2,295
Balance, end of period	$	14,639	$	29,290	$	2,435	$	4,301	$	3,599	$	6,787	$	61,051








Changes in allowance for credit losses on loans for the year ended December 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	648		1,031		(234)		(1,085)		864		2,726		3,950
Charge-offs	(6,465)		(3,524)		(448)		(398)		(1,158)		(3,427)		(15,420)
Recoveries	341		21		221		249		514		743		2,089
Balance, end of period	$	14,375	$	22,993	$	972	$	2,695	$	2,558	$	7,469	$	51,062

Changes in allowance for credit losses on loans for the year ended December 31, 2020:
Balance, beginning of period	$	10,031	$	10,272	$	290	$	2,499	$	2,642	$	2,294	$	28,028
Impact of adopting ASC 326	2,327		4,104		724		1,211		(594)		774		8,546
Impact of adopting ACS 326 - PCD loans	1,045		1,311		809		1,015		57		—		4,237
Provision for credit losses on loans	11,890		23,091		(121)		(458)		1,212		7,535		43,149
Charge-offs	(5,589)		(13,637)		(376)		(522)		(1,624)		(3,706)		(25,454)
Recoveries	147		324		107		184		645		530		1,937
Balance, end of period	$	19,851	$	25,465	$	1,433	$	3,929	$	2,338	$	7,427	$	60,443

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 rate, 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 December 31, 2022 and December 31, 2021:


	December 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	$	1,910	$	1,111	$	3,021	$	4,681	$	2,275	$	6,956
Commercial other	3,169		—		3,169		4,467		—		4,467
Commercial real estate:
Commercial real estate non-owner occupied	1,345		11,899		13,244		1,914		9,912		11,826
Commercial real estate owner occupied	7,118		—		7,118		2,164		1,340		3,504
Multi-family	154		8,949		9,103		201		1,967		2,168
Farmland	25		—		25		155		—		155
Construction and land development	202		—		202		83		—		83
Total commercial loans	13,923		21,959		35,882		13,665		15,494		29,159
Residential real estate:
Residential first lien	2,925		572		3,497		3,116		832		3,948
Other residential	871		—		871		836		—		836
Consumer:
Consumer	120		—		120		110		—		110

Lease financing	1,606		—		1,606		1,510		—		1,510
Total loans	$	19,445	$	22,531	$	41,976	$	19,237	$	16,326	$	35,563

There was no interest income recognized on nonaccrual loans during the years ended December 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 $2.8 million, $2.7 million and $3.3 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Collateral Dependent Financial Assets

A collateral dependent financial loan relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with a loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of

protection provided by the cash flow and value of any underlying collateral. However, as other sources of repayment become inadequate over time, the significance of the collateral’s value increases and the loan may become collateral dependent.

The table below presents the value of individually evaluated, collateral dependent loans by loan class, for borrowers experiencing financial difficulty, as of December 31, 2022 and December 31, 2021:


	Type of Collateral
(dollars in thousands)	Real Estate		Blanket Lien		Equipment		Total
December 31, 2022
Commercial:
Commercial	$	—	$	1,604	$	—	$	1,604

Commercial real estate:
Non-owner occupied	13,033		—		—		13,033
Owner occupied	3,874		—		—		3,874
Multi-family	8,950		—		—		8,950

Residential real estate
Residential first lien	220		—		—		220

Total collateral dependent loans	$	26,077	$	1,604	$	—	$	27,681

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 December 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	$	7	$	112	$	—	$	119	$	3,021	$	783,737	$	786,877
Commercial other	6,035		2,365		—		8,400		3,169		716,128		727,697
Commercial real estate:
Commercial real estate non-owner occupied	1,008		999		—		2,007		13,244		1,576,148		1,591,399
Commercial real estate owner occupied	73		—		—		73		7,118		489,595		496,786
Multi-family	—		—		—		—		9,103		268,786		277,889
Farmland	—		—		—		—		25		67,060		67,085
Construction and land development	—		6,000		—		6,000		202		314,680		320,882
Total commercial loans	7,123		9,476		—		16,599		35,882		4,216,134		4,268,615
Residential real estate:
Residential first lien	82		456		428		966		3,497		299,780		304,243
Other residential	188		13		—		201		871		60,779		61,851
Consumer:
Consumer	139		18		12		169		120		105,591		105,880
Consumer other	5,381		3,559		733		9,673		—		1,064,461		1,074,134
Lease financing	4,415		1,522		—		5,937		1,606		484,201		491,744
Total loans	$	17,328	$	15,044	$	1,173	$	33,545	$	41,976	$	6,230,946	$	6,306,467

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 ("TDRs")

Loans modified as TDRs for commercial and commercial real estate loans generally consist of allowing commercial borrowers to defer scheduled principal payments and make interest only payments for a specified period of time at the stated interest rate of the original loan agreement or lower payments due to a modification of the loans’ contractual terms. TDRs 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 Coronavirus Aid, Relief, and Economic Security Act, as amended by Section 541 of the Consolidated Appropriations Act, totaled $0 and $13.3 million at December 31, 2022 and 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 December 31, 2022 and December 31, 2021:


	December 31, 2022						December 31, 2021
(dollars in thousands)	Accruing (1)		Non-accrual (2)		Total		Accruing (1)		Non-accrual (2)		Total
Commercial	$	1,663	$	484	$	2,147	$	833	$	1,422	$	2,255
Commercial real estate	112		2,387		2,499		1,522		3,302		4,824
Construction and land development	27		—		27		37		—		37
Residential real estate	3,653		712		4,365		3,128		784		3,912
Consumer	56		—		56		98		—		98
Lease financing	763		21		784		1,394		241		1,635
Total loans	$	6,274	$	3,604	$	9,878	$	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 $0.3 million and $0.7 million as of December 31, 2022 and December 31, 2021, respectively. The Company had nine unfunded commitments in connection with TDRs at December 31, 2022 and December 31, 2021.

The following table presents a summary of loans by portfolio that were restructured during the years ended December 31, 2022 and 2021. There were no loans modified as TDRs within the previous twelve months that subsequently defaulted during the years ended December 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 year ended December 31, 2022
Troubled debt restructurings:
Number of loans	5		1		—		12		4		2		24
Pre-modification outstanding balance	$	1,353	$	6	$	—	$	611	$	108	$	84	$	2,162
Post-modification outstanding balance	1,353		6		—		596		106		84		2,145















For the year ended December 31, 2021
Troubled debt restructurings:
Number of loans	16		3		1		10		6		9		45
Pre-modification outstanding balance	$	2,294	$	1,639	$	49	$	551	$	134	$	1,635	$	6,302
Post-modification outstanding balance	2,178		1,539		—		513		89		1,635		5,954




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

Credit Quality Monitoring

The Company maintains loan policies and credit underwriting standards as part of the process of managing credit risk. These standards include making loans generally within the Company’s four main regions, which include eastern, northern and southern Illinois and the St. Louis metropolitan area. In addition, our specialty finance division does nationwide bridge lending for FHA and HUD developments and originates loans for multifamily, assisted and senior living and multi-use properties. Our equipment leasing business provides financing to business customers across the country.

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

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

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

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

Credit Quality Indicators

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

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

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


			December 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	$	111,087	$	102,966	$	61,751	$	28,063	$	12,547	$	45,168	$	404,100	$	765,682
		Special mention	3,559		2,106		—		227		551		3,154		159		9,756
		Substandard	—		—		—		206		1,722		3,915		2,575		8,418
		Substandard – nonaccrual	—		340		—		132		83		246		2,220		3,021
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	114,646		105,412		61,751		28,628		14,903		52,483		409,054		786,877

	Commercial other	Acceptable credit quality	283,465		153,788		105,980		64,218		15,459		163		96,509		719,582
		Special mention	—		—		754		2,331		455		—		55		3,595
		Substandard	250		—		—		12		80		—		848		1,190
		Substandard – nonaccrual	524		1,247		444		463		491		—		—		3,169
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	161		—		—		—		—		—		—		161
		Subtotal	284,400		155,035		107,178		67,024		16,485		163		97,412		727,697

Commercial real estate	Non-owner occupied	Acceptable credit quality	679,040		403,952		145,235		72,504		18,249		160,992		4,833		1,484,805
		Special mention	1,407		186		477		10,633		195		8,452		—		21,350
		Substandard	569		—		7,458		32,731		1,587		29,655		—		72,000
		Substandard – nonaccrual	—		701		—		48		10,246		2,249		—		13,244
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	681,016		404,839		153,170		115,916		30,277		201,348		4,833		1,591,399

	Owner occupied	Acceptable credit quality	120,141		122,321		64,720		31,916		29,454		88,928		4,305		461,785
		Special mention	—		1,161		—		7,917		—		12,161		22		21,261
		Substandard	141		272		79		1,984		—		3,771		375		6,622
		Substandard – nonaccrual	155		4,165		225		146		333		1,790		304		7,118
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	120,437		127,919		65,024		41,963		29,787		106,650		5,006		496,786

	Multi-family	Acceptable credit quality	163,647		31,605		29,458		208		24,490		14,574		1,101		265,083
		Special mention	—		—		—		—		—		—		—		—
		Substandard	—		—		—		—		—		3,703		—		3,703
		Substandard – nonaccrual	—		927		—		113		—		8,063		—		9,103
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	163,647		32,532		29,458		321		24,490		26,340		1,101		277,889

	Farmland	Acceptable credit quality	8,659		16,138		13,467		4,117		3,129		19,102		1,593		66,205
		Special mention	—		—		—		—		—		159		—		159
		Substandard	—		14		—		23		113		347		199		696
		Substandard – nonaccrual	—		—		—		—		—		25		—		25
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	8,659		16,152		13,467		4,140		3,242		19,633		1,792		67,085

Construction and land development		Acceptable credit quality	171,243		79,747		10,676		8,388		98		1,420		37,997		309,569
		Special mention	—		—		—		—		—		210		—		210
		Substandard	—		6,000		—		—		2,415		—		—		8,415
		Substandard – nonaccrual	—		—		—		202		—		—		—		202
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	2,112		337		8		—		—		29		—		2,486
		Subtotal	173,355		86,084		10,684		8,590		2,513		1,659		37,997		320,882

Total		Acceptable credit quality	1,537,282		910,517		431,287		209,414		103,426		330,347		550,438		4,072,711
		Special mention	4,966		3,453		1,231		21,108		1,201		24,136		236		56,331
		Substandard	960		6,286		7,537		34,956		5,917		41,391		3,997		101,044
		Substandard – nonaccrual	679		7,380		669		1,104		11,153		12,373		2,524		35,882
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	2,273		337		8		—		—		29		—		2,647
Total commercial loans			$	1,546,160	$	927,973	$	440,732	$	266,582	$	121,697	$	408,276	$	557,195	$	4,268,615


			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 December 31, 2022 and December 31, 2021:


			December 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	$	75,449	$	38,774	$	31,566	$	20,780	$	21,691	$	109,067	$	336	$	297,663
		Nonperforming	101		—		104		414		987		4,974		—		6,580
		Subtotal	75,550		38,774		31,670		21,194		22,678		114,041		336		304,243

	Other residential	Performing	1,722		496		534		1,060		1,496		1,515		53,159		59,982
		Nonperforming	17		—		—		7		18		208		1,619		1,869
		Subtotal	1,739		496		534		1,067		1,514		1,723		54,778		61,851

Consumer	Consumer	Performing	32,561		40,374		9,411		3,476		2,768		14,756		2,346		105,692
		Nonperforming	33		50		7		1		13		79		5		188
		Subtotal	32,594		40,424		9,418		3,477		2,781		14,835		2,351		105,880

	Consumer other	Performing	669,015		260,360		92,148		34,501		6,637		5,430		5,310		1,073,401
		Nonperforming	733		—		—		—		—		—		—		733
		Subtotal	669,748		260,360		92,148		34,501		6,637		5,430		5,310		1,074,134

Leases financing		Performing	215,084		110,294		84,458		54,684		21,767		3,088		—		489,375
		Nonperforming	—		522		736		818		254		39		—		2,369
		Subtotal	215,084		110,816		85,194		55,502		22,021		3,127		—		491,744

Total		Performing	993,831		450,298		218,117		114,501		54,359		133,856		61,151		2,026,113
		Nonperforming	884		572		847		1,240		1,272		5,300		1,624		11,739
Total other loans			$	994,715	$	450,870	$	218,964	$	115,741	$	55,631	$	139,156	$	62,775	$	2,037,852


			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

PARENT COMPANY ONLY FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Balance Sheets

The condensed financial statements of Midland States Bancorp, Inc. are presented below:


Condensed Balance Sheets
(dollars in thousands)
	December 31,
	2022		2021
Assets:
Cash	$	2,721	$	37,876
Investment in banking subsidiaries	859,355		808,283
Investment in non-banking subsidiaries	774		860

Note receivable due from bank subsidiary	40,000		—
Other assets	8,468		8,094
Total assets	$	911,318	$	855,113
Liabilities:
Subordinated debt	$	99,772	$	139,091
Trust preferred debentures	49,975		49,374
Other borrowings	—		171


Other liabilities	2,997		2,640
Total liabilities	152,744		191,276
Shareholders’ equity	758,574		663,837
Total liabilities and shareholders’ equity	$	911,318	$	855,113

Schedule of Condensed Statement of Income


Condensed Statements of Income
(dollars in thousands)

	Years ended December 31,
	2022		2021		2020
Income
Dividends from subsidiaries	$	14,765	$	45,350	$	89,890
Earnings of consolidated subsidiaries, net of dividends	90,021		44,582		(56,739)
Interest income on note to subsidiary	10		—		—
Other income	4		932		—
Total income	104,800		90,864		33,151
Interest expense	10,534		10,668		12,054
Other expense	1,625		984		1,309
Total expense	12,159		11,652		13,363
Income before income tax benefit	92,641		79,212		19,788
Income tax benefit	6,384		2,105		2,749
Net income	$	99,025	$	81,317	$	22,537

Schedule of Condensed Cash Flows


Condensed Statements of Cash Flows
(dollars in thousands)

	Years ended December 31,
	2022		2021		2020
Cash flows from operating activities:
Net income	$	99,025	$	81,317	$	22,537
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed (income) loss of subsidiaries	(90,021)		(44,582)		56,739
Share-based compensation expense	2,211		1,938		2,175
Change in other assets	(373)		3,223		(6,382)
Change in other liabilities	1,639		763		471
Net cash provided by operating activities	12,481		42,659		75,540
Cash flows from investing activities:

Capital injection to bank subsidiary	(50,000)		—		—
Note receivable to bank subsidiary	(40,000)		—		—
Net cash received in dissolution of subsidiary	—		2,003		—
Net cash (used in) provided by investing activities	(90,000)		2,003		—
Cash flows from financing activities:

Payments on other borrowings	(171)		—		(10)
Payments made on subordinated debt	(40,000)		(31,075)		(7,443)
Subordinated debt prepayment fees	—		—		193


Common stock repurchased	(1,109)		(11,692)		(39,615)

Cash dividends paid on common stock	(25,923)		(25,172)		(24,958)
Cash dividends paid on preferred stock	(3,169)		—		—
Proceeds from issuance of preferred stock	110,548		—		—
Proceeds from issuance of common stock under employee benefit plans	2,188		2,249		2,524
Net cash provided by (used in) financing activities	42,364		(65,690)		(69,309)
Net (decrease) increase in cash	(35,155)		(21,028)		6,231
Cash:
Beginning of period	37,876		58,904		52,673
End of period	$	2,721	$	37,876	$	58,904

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value option and gains and losses from fair value changes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	$ 1,286	$ 32,045
Difference	42	584
Contractual principal	1,244	31,461
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	(425)	(215)	$ 179
Commercial Loan Portfolio
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	0	19,230
Difference	0	0
Contractual principal	0	19,230
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	0	(67)	(139)
Residential Portfolio Segment
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	1,286	12,815
Difference	42	584
Contractual principal	1,244	12,231
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	$ (425)	$ (148)	$ 318

PREFERRED STOCK	12 Months Ended
PREFERRED STOCK	Dec. 31, 2022
Equity [Abstract]
PREFERRED STOCK	PREFERRED STOCK On August 24, 2022, the Company issued and sold 4,600,000 depositary shares (the "Depositary Shares"), each representing a 1/40th ownership interest in a share of the Company's 7.75% fixed-rate reset non-cumulative perpetual preferred stock, Series A, par value $2.00 per share (the "Series A preferred stock"), with a liquidation preference of $25 per depositary share (equivalent to $1,000 per share of Series A Preferred Stock). The Series A preferred stock qualifies as Tier 1 capital for purposes of regulatory capital calculations. The gross proceeds were $115.0 million while net proceeds from the issuance of the Series A preferred stock, after deducting $4.5 million of offering costs, including the underwriting discount and other expenses, were $110.5 million. Dividends on the Series A preferred stock will not be cumulative or mandatory, and will be paid when, as, and if declared by the Company’s board of directors. If declared, dividends will accrue and be payable, quarterly in arrears, (i) from and including the date of original issuance to, but excluding September 30, 2027 or the date of earlier redemption, at a rate of 7.75% per annum, on March 30, June 30, September 30 and December 30 of each year, commencing on December 30, 2022, and (ii) from and including September 30, 2027, during each reset period, at a rate per annum equal to the five-year treasury rate as of the most recent reset dividend determination date plus 4.713%, on March 30, June 30, September 30 and December 30 of each year, beginning on December 30, 2027, except in each case where such day is not a business day. If the Company’s board of directors does not declare a dividend on the Series A preferred stock in respect of a dividend period, then no dividend shall be deemed to be payable for such dividend period, or be cumulative, and the Company will have no obligation to pay any dividend for that dividend period, whether or not the board of directors declares a dividend on the Series A preferred stock or any other class or series of the Company's capital stock for any future dividend period. Additionally, so long as any share of Series A preferred stock remains outstanding, unless dividends on all outstanding shares of Series A preferred stock for the most recently completed dividend period have been paid in full or declared and a sum sufficient for the payment thereof has been set aside for payment, no dividend shall be declared or paid or set aside for payment and no distribution shall be declared or made or set aside for payment on the Company’s common stock. The Series A preferred stock is perpetual and has no maturity date. The Series A preferred stock is not subject to any mandatory redemption, sinking fund, or other similar provisions. The Company, at its option and subject to prior regulatory approval, may redeem the Series A preferred stock (i) in whole or in part, from time to time, on any dividend payment date on or after September 30, 2027, or (ii) in whole but not in part at any time within 90 days following a regulatory capital treatment event, in each case, at a redemption price equal to $1,000 per share of Series A preferred stock (equivalent to $25 per Depositary Share), plus any declared and unpaid dividends, without regard to any undeclared dividends, to but excluding the redemption date. Neither the holders of the Series A preferred stock nor holders of the Depositary Shares will have the right to require the redemption or repurchase of the Series A preferred stock.

TRUST PREFERRED DEBENTURES (Tables)

12 Months Ended

Dec. 31, 2022

TRUST PREFERRED DEBENTURES

Summary of Trust Preferred Debentures

The following table summarizes the terms of each issuance:


							At December 31, 2022				At December 31, 2021
(dollars in thousands)	Date of issuance	Issuance Amount		Shares Issued	Variable Rate	Maturity Date	Carrying Amount		Rate		Carrying Amount		Rate
Grant Park Statutory Trust I	12/19/2003	$	3,093	3,000	LIBOR plus 2.85%	1/23/2034	$	2,410	7.26	%	$	2,363	2.98	%
Midland States Preferred Securities Trust	3/26/2004	10,310		10,000	LIBOR plus 2.75%	4/23/2034	10,282		7.07	%	10,279		2.87	%
Centrue Statutory Trust II	4/22/2004	10,310		10,000	LIBOR plus 2.65%	6/17/2034	8,358		7.39	%	8,255		2.87	%
Love Savings/Heartland Capital Trust III	11/30/2006	20,619		20,000	LIBOR plus 1.75%	12/31/2036	14,870		6.52	%	14,647		1.95	%
Love Savings/Heartland Capital Trust IV	6/6/2007	20,619		20,000	LIBOR plus 1.47%	9/6/2037	14,055		6.20	%	13,830		1.65	%
Total trust preferred debentures		$	64,951				$	49,975			$	49,374

SUBORDINATED DEBT

12 Months Ended

Dec. 31, 2022

Subordinated Borrowings [Abstract]

SUBORDINATED DEBT

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


	Subordinated debt
	Fixed to Float									Fixed
(dollars in thousands)	Issued October 2017			Issued September 2019			Issued September 2019			Issued June 2015			Total
At December 31, 2022
Outstanding amount	$	—		$	72,750		$	27,250		$	550		$	100,550
Carrying amount	—			72,300			26,925			547			99,772
Current rate	—			5.00		%	5.50		%	6.50		%
At December 31, 2021
Outstanding amount	$	40,000		$	72,750		$	27,250		$	550		$	140,550
Carrying amount	39,626			72,042			26,877			546			139,091
Current rate	6.25		%	5.00		%	5.50		%	6.50		%
Maturity date	10/15/2027			9/30/2029			9/30/2034			6/18/2025
Optional redemption date	10/15/2022			9/30/2024			9/30/2029			N/A
Fixed to variable conversion date	10/15/2022			9/30/2024			9/30/2029			N/A
Variable rate	3-month LIBOR plus 4.23%			3-month SOFR plus 3.61%			3-month SOFR plus 4.05%			N/A
Interest payment terms	Quarterly			Semiannually			Semiannually			Semiannually

The value of subordinated debentures have been reduced by the debt issuance costs, which are being amortized on a straight line basis through the earlier of the redemption option or maturity date. All of the subordinated debentures above may be included in Tier 2 capital (with certain limitations applicable) under current regulatory guidelines and interpretations.

On October 15, 2022, the Company redeemed the outstanding Fixed-to-Floating Rate Subordinated Notes due October 15, 2027, having an aggregate principal amount of $40.0 million, in accordance with the terms of the notes. The aggregate redemption price was 100% of the aggregate principal amount of the subordinated notes, plus accrued and unpaid interest. The interest rate on the subordinated notes was 6.25%.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME—(UNAUDITED) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 99,025	$ 81,317	$ 22,537
Investment securities available for sale:
Unrealized (losses) gains that occurred during the period	(106,927)	(12,553)	6,454
(Recapture of) provision for credit loss expense	(221)	(145)	366
Reclassification adjustment for realized net losses (gains) on sales of investment securities included in net income	230	(537)	(1,721)
Income tax effect	28,876	3,640	(1,402)
Change in investment securities available for sale, net of tax	(78,042)	(9,595)	3,697
Cash flow hedges:
Net unrealized derivative gains on cash flow hedges	2,438	6,851	403
Reclassification adjustment for gains realized in net income	(17,531)	(2,159)	0
Income tax effect	4,101	(1,291)	(111)
Change in cash flow hedges, net of tax	(10,992)	3,401	292
Other comprehensive (loss) income, net of tax	(89,034)	(6,194)	3,989
Total comprehensive income	$ 9,991	$ 75,123	$ 26,526

LOANS - TDRs by Portfolio - Restructured and Subsequently Defaulted (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan
Troubled debt restructurings:
Number of loans \| loan	24	45	37
Pre-modification outstanding balance	$ 2,162	$ 6,302	$ 5,164
Post-modification outstanding balance	$ 2,145	$ 5,954	$ 4,455
Commercial Loan Portfolio \| Commercial
Troubled debt restructurings:
Number of loans \| loan	5	16	4
Pre-modification outstanding balance	$ 1,353	$ 2,294	$ 989
Post-modification outstanding balance	$ 1,353	$ 2,178	$ 967
Commercial Loan Portfolio \| Commercial real estate
Troubled debt restructurings:
Number of loans \| loan	1	3	4
Pre-modification outstanding balance	$ 6	$ 1,639	$ 797
Post-modification outstanding balance	$ 6	$ 1,539	$ 383
Commercial Loan Portfolio \| Construction and land development
Troubled debt restructurings:
Number of loans \| loan	0	1	3
Pre-modification outstanding balance	$ 0	$ 49	$ 1,010
Post-modification outstanding balance	$ 0	$ 0	$ 900
Residential Portfolio Segment \| Residential real estate
Troubled debt restructurings:
Number of loans \| loan	12	10	22
Pre-modification outstanding balance	$ 611	$ 551	$ 2,334
Post-modification outstanding balance	$ 596	$ 513	$ 2,172
Consumer \| Consumer
Troubled debt restructurings:
Number of loans \| loan	4	6	4
Pre-modification outstanding balance	$ 108	$ 134	$ 34
Post-modification outstanding balance	$ 106	$ 89	$ 33
Lease financing
Troubled debt restructurings:
Number of loans \| loan	2	9	0
Pre-modification outstanding balance	$ 84	$ 1,635	$ 0
Post-modification outstanding balance	$ 84	$ 1,635	$ 0

RETIREMENT PLANS - Assumptions (Details)	12 Months Ended
RETIREMENT PLANS - Assumptions (Details)	Dec. 31, 2022
Retirement Benefits [Abstract]
Discount rate	2.70%
Expected long-term return on plan assets	5.50%
Rate of compensation increase	0.00%

INCOME TAXES

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

INCOME TAXES

The components of income taxes for the years ended December 31, 2022, 2021 and 2020 were as follows:


(dollars in thousands)	2022		2021		2020
Federal:
Current	$	22,792	$	10,044	$	10,924
Deferred	64		7,926		(3,852)
State:
Current	11,101		144		1,271
Deferred	(3,144)		(319)		1,134
Total income tax expense	$	30,813	$	17,795	$	9,477

The Company’s income tax expense differed from the statutory federal rate of 21% for the years ended December 31, 2022, 2021 and 2020 as follows:


(dollars in thousands)	2022		2021		2020
Expected income taxes	$	27,266	$	20,814	$	6,723
Less income tax effect of:
Tax-exempt income, net	(2,014)		(2,499)		(2,398)

State tax, net of federal benefit	6,274		5,465		1,900

State tax settlement, net of federal expense	—		(5,614)		—
Equity-based compensation benefit	(186)		(93)		239

Disposition of nondeductible goodwill	—		—		2,287
Valuation allowance	58		47		10

Other	(585)		(325)		716
Actual income tax expense	$	30,813	$	17,795	$	9,477

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

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

Deferred tax assets, net in the accompanying consolidated balance sheets at December 31, 2022 and 2021 include the following amounts of deferred tax assets and liabilities:


(dollars in thousands)	2022		2021
Assets:
Allowance for credit losses on loans	$	16,484	$	14,042
Deferred compensation	2,238		2,177
Loans	1,379		1,835

Tax credits	861		1,067

Unrealized loss on securities	28,404		—
Unrealized loss on derivatives	2,700		—

Net operating losses	8,922		10,113



Fair value adjustment on investments	287		879


Operating lease liabilities	2,415		2,946
Other, net	4,550		3,519
Deferred tax assets	68,240		36,578
Valuation allowance	(176)		(118)
Deferred tax assets, net of valuation allowance	68,064		36,460
Liabilities:
Premises and equipment	573		472
Unrealized gain on securities	—		569
Unrealized gain on derivatives	—		1,401
Mortgage servicing rights	4,217		5,958
Fair value adjustment on trust preferred debentures	4,025		4,264

Deferred loan costs, net of fees	3,006		3,444
Intangible assets	4,458		5,651


Software development costs	842		1,446
Leased equipment	24,346		22,297
Operating lease right-of-use assets	1,890		2,318
Other, net	2,222		2,218
Deferred tax liabilities	45,579		50,038
Deferred tax assets (liabilities), net	$	22,485	$	(13,578)

At December 31, 2022 and 2021, the accumulation of the prior year’s earnings representing tax bad debt deductions was approximately $3.1 million for both years. If these tax bad debt reserves were charged for losses other than bad debt losses, the Company would be required to recognize taxable income in the amount of the charge. It is not expected that such tax-restricted retained earnings will be used in a manner that would create federal income tax liabilities.

The tax benefit associated with the state tax settlement is related to an agreement that was reached with the state taxing authorities on an issue from prior year state tax returns.

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

The Company had $37.5 million of federal net operating loss carryforwards expiring 2023 through 2035, $13.9 million of Illinois post-apportioned net operating loss carryforwards expiring in 2027 and 2028, and $37.5 million of Missouri pre-apportioned net operating loss carryforwards expiring 2023 through 2035, at December 31, 2022. The utilization of the federal and Missouri net operating losses are subject to the limitations of Internal Revenue Code Section 382. The utilization of the Illinois net operating loss is limited to $100,000 per year for years 2021 through 2023 and the carryforward period will toll in years the Company could have utilized more than $100,000 of net operating loss.

The Company has state tax credit carryforwards of $1.1 million with a five year carryforward period, expiring between 2024 and 2027. Any amounts that are expected to expire before being fully utilized have been accounted for through a valuation allowance as discussed below.

We had no unrecognized tax benefits as of December 31, 2022 and 2021, and did not recognize any increase of unrecognized benefits during 2022 relative to any tax positions taken during the year.

Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is our policy to record such accruals in other income or expense; no such accruals existed as of December 31, 2022 and 2021.

Future realization of the tax benefit of an existing deductible temporary difference or carryforward ultimately depends on the existence of sufficient taxable income of the appropriate character within the carryback or carryforward period available under the tax law. All available evidence, both positive and negative, should be considered to determine whether, based on the weight of that evidence, a valuation allowance is needed. At December 31, 2022, the Company concluded, based on all available evidence, a valuation allowance was needed for the Company’s deferred tax asset related to capital loss carry forwards. An addition was made to the $0.1 million valuation allowance from December 31, 2021 in the amount of $0.1 million, resulting in a valuation allowance of $0.2 million at December 31, 2022 for the estimated capital losses that will not be able to be utilized in the future. For the Company's remaining deferred tax assets, based on our taxpaying history and estimates of taxable income over the years in which the items giving rise to the deferred tax assets are deductible, management believes it is more likely than not that we will realize the benefits of these deductible differences.

The Company is subject to U.S. federal income tax as well as income tax of various states. Years that remain open for potential review by the Internal Revenue Service are 2019 through 2021 and by state taxing authorities are 2018 through 2021.

On August 16, 2022, the U.S. government enacted the Inflation Reduction Act of 2022 that includes, among other provisions, changes to the U.S. corporate income tax system, including a fifteen percent minimum tax based on "adjusted financial statement income," which is effective for tax years beginning after December 31, 2022, and a one percent excise tax on net repurchases of stock after December 31, 2022. The Company is continuing to evaluate the Inflation Reduction Act and its requirements, as well as the application to its business, but at this time does not expect the Inflation Reduction Act to have a material impact on the Company's financial results.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

SUBORDINATED DEBT (Tables)

12 Months Ended

Dec. 31, 2022

Subordinated Borrowings [Abstract]

Schedule of Summary of Company's Subordinated Debt

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


	Subordinated debt
	Fixed to Float									Fixed
(dollars in thousands)	Issued October 2017			Issued September 2019			Issued September 2019			Issued June 2015			Total
At December 31, 2022
Outstanding amount	$	—		$	72,750		$	27,250		$	550		$	100,550
Carrying amount	—			72,300			26,925			547			99,772
Current rate	—			5.00		%	5.50		%	6.50		%
At December 31, 2021
Outstanding amount	$	40,000		$	72,750		$	27,250		$	550		$	140,550
Carrying amount	39,626			72,042			26,877			546			139,091
Current rate	6.25		%	5.00		%	5.50		%	6.50		%
Maturity date	10/15/2027			9/30/2029			9/30/2034			6/18/2025
Optional redemption date	10/15/2022			9/30/2024			9/30/2029			N/A
Fixed to variable conversion date	10/15/2022			9/30/2024			9/30/2029			N/A
Variable rate	3-month LIBOR plus 4.23%			3-month SOFR plus 3.61%			3-month SOFR plus 4.05%			N/A
Interest payment terms	Quarterly			Semiannually			Semiannually			Semiannually

LOANS - Summary of Changes in the ACL on Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Changes in allowance for credit losses on loans
Balance, beginning of period	$ 51,062	$ 60,443	$ 28,028
Provision for credit losses on loans	18,797	3,950	43,149
Charge-offs	(11,103)	(15,420)	(25,454)
Recoveries	2,295	2,089	1,937
Balance, end of period	61,051	51,062	60,443
PCD (Previously PCI) loans
Changes in allowance for credit losses on loans
Balance, beginning of period			4,237
ASU 2016-13
Changes in allowance for credit losses on loans
Balance, beginning of period			8,546
Commercial Loan Portfolio \| Commercial
Changes in allowance for credit losses on loans
Balance, beginning of period	14,375	19,851	10,031
Provision for credit losses on loans	3,984	648	11,890
Charge-offs	(4,121)	(6,465)	(5,589)
Recoveries	401	341	147
Balance, end of period	14,639	14,375	19,851
Commercial Loan Portfolio \| Commercial \| PCD (Previously PCI) loans
Changes in allowance for credit losses on loans
Balance, beginning of period			1,045
Commercial Loan Portfolio \| Commercial \| ASU 2016-13
Changes in allowance for credit losses on loans
Balance, beginning of period			2,327
Commercial Loan Portfolio \| Commercial real estate
Changes in allowance for credit losses on loans
Balance, beginning of period	22,993	25,465	10,272
Provision for credit losses on loans	10,396	1,031	23,091
Charge-offs	(4,106)	(3,524)	(13,637)
Recoveries	7	21	324
Balance, end of period	29,290	22,993	25,465
Commercial Loan Portfolio \| Commercial real estate \| PCD (Previously PCI) loans
Changes in allowance for credit losses on loans
Balance, beginning of period			1,311
Commercial Loan Portfolio \| Commercial real estate \| ASU 2016-13
Changes in allowance for credit losses on loans
Balance, beginning of period			4,104
Commercial Loan Portfolio \| Construction and land development
Changes in allowance for credit losses on loans
Balance, beginning of period	972	1,433	290
Provision for credit losses on loans	1,439	(234)	(121)
Charge-offs	(6)	(448)	(376)
Recoveries	30	221	107
Balance, end of period	2,435	972	1,433
Commercial Loan Portfolio \| Construction and land development \| PCD (Previously PCI) loans
Changes in allowance for credit losses on loans
Balance, beginning of period			809
Commercial Loan Portfolio \| Construction and land development \| ASU 2016-13
Changes in allowance for credit losses on loans
Balance, beginning of period			724
Residential Portfolio Segment \| Residential real estate
Changes in allowance for credit losses on loans
Balance, beginning of period	2,695	3,929	2,499
Provision for credit losses on loans	1,698	(1,085)	(458)
Charge-offs	(344)	(398)	(522)
Recoveries	252	249	184
Balance, end of period	4,301	2,695	3,929
Residential Portfolio Segment \| Residential real estate \| PCD (Previously PCI) loans
Changes in allowance for credit losses on loans
Balance, beginning of period			1,015
Residential Portfolio Segment \| Residential real estate \| ASU 2016-13
Changes in allowance for credit losses on loans
Balance, beginning of period			1,211
Consumer \| Consumer
Changes in allowance for credit losses on loans
Balance, beginning of period	2,558	2,338	2,642
Provision for credit losses on loans	1,813	864	1,212
Charge-offs	(1,229)	(1,158)	(1,624)
Recoveries	457	514	645
Balance, end of period	3,599	2,558	2,338
Consumer \| Consumer \| PCD (Previously PCI) loans
Changes in allowance for credit losses on loans
Balance, beginning of period			57
Consumer \| Consumer \| ASU 2016-13
Changes in allowance for credit losses on loans
Balance, beginning of period			(594)
Lease financing
Changes in allowance for credit losses on loans
Balance, beginning of period	7,469	7,427	2,294
Provision for credit losses on loans	(533)	2,726	7,535
Charge-offs	(1,297)	(3,427)	(3,706)
Recoveries	1,148	743	530
Balance, end of period	$ 6,787	$ 7,469	7,427
Lease financing \| PCD (Previously PCI) loans
Changes in allowance for credit losses on loans
Balance, beginning of period			0
Lease financing \| ASU 2016-13
Changes in allowance for credit losses on loans
Balance, beginning of period			$ 774

PARENT COMPANY ONLY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

PARENT COMPANY ONLY FINANCIAL INFORMATION

The condensed financial statements of Midland States Bancorp, Inc. are presented below:


Condensed Balance Sheets
(dollars in thousands)
	December 31,
	2022		2021
Assets:
Cash	$	2,721	$	37,876
Investment in banking subsidiaries	859,355		808,283
Investment in non-banking subsidiaries	774		860

Note receivable due from bank subsidiary	40,000		—
Other assets	8,468		8,094
Total assets	$	911,318	$	855,113
Liabilities:
Subordinated debt	$	99,772	$	139,091
Trust preferred debentures	49,975		49,374
Other borrowings	—		171


Other liabilities	2,997		2,640
Total liabilities	152,744		191,276
Shareholders’ equity	758,574		663,837
Total liabilities and shareholders’ equity	$	911,318	$	855,113


Condensed Statements of Income
(dollars in thousands)

	Years ended December 31,
	2022		2021		2020
Income
Dividends from subsidiaries	$	14,765	$	45,350	$	89,890
Earnings of consolidated subsidiaries, net of dividends	90,021		44,582		(56,739)
Interest income on note to subsidiary	10		—		—
Other income	4		932		—
Total income	104,800		90,864		33,151
Interest expense	10,534		10,668		12,054
Other expense	1,625		984		1,309
Total expense	12,159		11,652		13,363
Income before income tax benefit	92,641		79,212		19,788
Income tax benefit	6,384		2,105		2,749
Net income	$	99,025	$	81,317	$	22,537


Condensed Statements of Cash Flows
(dollars in thousands)

	Years ended December 31,
	2022		2021		2020
Cash flows from operating activities:
Net income	$	99,025	$	81,317	$	22,537
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed (income) loss of subsidiaries	(90,021)		(44,582)		56,739
Share-based compensation expense	2,211		1,938		2,175
Change in other assets	(373)		3,223		(6,382)
Change in other liabilities	1,639		763		471
Net cash provided by operating activities	12,481		42,659		75,540
Cash flows from investing activities:

Capital injection to bank subsidiary	(50,000)		—		—
Note receivable to bank subsidiary	(40,000)		—		—
Net cash received in dissolution of subsidiary	—		2,003		—
Net cash (used in) provided by investing activities	(90,000)		2,003		—
Cash flows from financing activities:

Payments on other borrowings	(171)		—		(10)
Payments made on subordinated debt	(40,000)		(31,075)		(7,443)
Subordinated debt prepayment fees	—		—		193


Common stock repurchased	(1,109)		(11,692)		(39,615)

Cash dividends paid on common stock	(25,923)		(25,172)		(24,958)
Cash dividends paid on preferred stock	(3,169)		—		—
Proceeds from issuance of preferred stock	110,548		—		—
Proceeds from issuance of common stock under employee benefit plans	2,188		2,249		2,524
Net cash provided by (used in) financing activities	42,364		(65,690)		(69,309)
Net (decrease) increase in cash	(35,155)		(21,028)		6,231
Cash:
Beginning of period	37,876		58,904		52,673
End of period	$	2,721	$	37,876	$	58,904

In 2022, the Bank borrowed $40.0 million from the parent as part of its strategy to manage FDIC insurance premiums. The note has a rolling 13 month maturity with an interest rate of 4.51%.

SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	May 03, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years
Total unrecognized compensation	$ 1.0
Total unrecognized compensation (in years)	3 years 9 months 18 days
Contractual term	10 years
Aggregate intrinsic value of options outstanding	$ 0.8
Aggregate intrinsic value of options exercisable	$ 0.8
Granted (in dollars per shares)	$ 4.92
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost that has been charged against income	$ 2.2	$ 1.9	$ 2.2
Total unrecognized compensation	$ 6.3
Total unrecognized compensation (in years)	3 years 1 month 6 days
Fair value of vested shares	$ 2.4	$ 2.1	$ 1.2
2019 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)				1,000,000

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Condensed Statements of Income
Interest expense	$ 56,020	$ 30,142	$ 45,752
Income before income taxes	129,838	99,112	32,014
Income tax benefit	(30,813)	(17,795)	(9,477)
Net income	99,025	81,317	22,537
Midland States Bancorp, Inc.
Condensed Statements of Income
Dividends from subsidiaries	14,765	45,350	89,890
Earnings of consolidated subsidiaries, net of dividends	90,021	44,582	(56,739)
Interest income on note to subsidiary	10	0	0
Other income	4	932	0
Total income	104,800	90,864	33,151
Interest expense	10,534	10,668	12,054
Other expense	1,625	984	1,309
Total expense	12,159	11,652	13,363
Income before income taxes	92,641	79,212	19,788
Income tax benefit	6,384	2,105	2,749
Net income	$ 99,025	$ 81,317	$ 22,537

PREFERRED STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Aug. 24, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)		115,000
Preferred stock, par value (in dollars per share)		$ 2.00
Preferred stock, liquidation price (in dollars per share)		$ 1,000
Proceeds from issuance of preferred stock		$ 110,548	$ 0	$ 0
Depository Shares
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)	4,600,000
Preferred stock ownership interest percentage	2.50%
Preferred stock, liquidation price (in dollars per share)	$ 25
Preferred stock, redemption price (in dollars per share)	$ 25
Preferred stock
Class of Stock [Line Items]
Preferred stock fixed rate	7.75%
Preferred stock, par value (in dollars per share)	$ 2.00
Preferred stock, liquidation price (in dollars per share)	$ 1,000
Proceeds from issuance of preferred stock	$ 115,000
Offering costs	4,500
Underwriting discount and other expenses	$ 110,500
Dividends basis spread	4.713%
Preferred stock, redemption price (in dollars per share)	$ 1,000

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Net interest income (expense)	$ 245,735	$ 207,675	$ 199,136
Provision for credit losses	20,126	3,393	44,361
Noninterest income	79,891	69,899	61,249
Noninterest expense	175,662	175,069	184,010
Income before income taxes	129,838	99,112	32,014
Income taxes (benefit)	30,813	17,795	9,477
Net income	99,025	81,317	22,537
Total assets	7,855,501	7,443,805	6,868,540
Banking
Segment Reporting Information [Line Items]
Net interest income (expense)	256,226	218,309	211,120
Provision for credit losses	20,126	3,393	44,361
Noninterest income	54,179	42,249	38,706
Noninterest expense	157,680	158,803	170,025
Income before income taxes	132,599	98,362	35,440
Income taxes (benefit)	35,055	17,218	10,020
Net income	97,544	81,144	25,420
Total assets	7,841,966	7,460,114	6,983,254
Wealth management
Segment Reporting Information [Line Items]
Net interest income (expense)	0	0	0
Provision for credit losses	0	0	0
Noninterest income	25,708	26,876	22,802
Noninterest expense	18,019	17,372	14,938
Income before income taxes	7,689	9,504	7,864
Income taxes (benefit)	2,136	2,679	2,194
Net income	5,553	6,825	5,670
Total assets	29,332	28,883	29,069
Other
Segment Reporting Information [Line Items]
Net interest income (expense)	(10,491)	(10,634)	(11,984)
Provision for credit losses	0	0	0
Noninterest income	4	774	(259)
Noninterest expense	(37)	(1,106)	(953)
Income before income taxes	(10,450)	(8,754)	(11,290)
Income taxes (benefit)	(6,378)	(2,102)	(2,737)
Net income	(4,072)	(6,652)	(8,553)
Total assets	$ (15,797)	$ (45,192)	$ (143,783)

INVESTMENT SECURITIES (Tables)

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of Investment Securities Classified as Available for Sale

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


	December 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	$	86,313	$	113	$	5,196	$	—	$	81,230
U.S. government sponsored entities and U.S. agency securities	41,775		71		4,337		—		37,509
Mortgage-backed securities - agency	522,028		268		74,146		—		448,150
Mortgage-backed securities - non-agency	24,922		—		4,168		—		20,754
State and municipal securities	102,719		149		8,232		—		94,636
Corporate securities	95,266		—		9,311		—		85,955
Total available for sale securities	$	873,023	$	601	$	105,390	$	—	$	768,234


	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

The following is a summary of the amortized cost and fair value of the investment securities available for sale, by maturity, at December 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	$	32,553	$	32,151
After one year through five years	130,347		122,407
After five years through ten years	135,682		120,722
After ten years	27,491		24,050
Mortgage-backed securities	546,950		468,904
Total available for sale securities	$	873,023	$	768,234

Proceeds and gross realized gains and losses on sales of investment securities available for sale for the years ended 2022, 2021, and 2020 are summarized as follows:



(dollars in thousands)	2022		2021		2020
Investment securities available for sale
Proceeds from sales	$	136,403	$	14,777	$	28,256
Gross realized gains on sales	829		537		1,721
Gross realized losses on sales	(1,059)		—		—

Allowance for Credit Loss Rollforward

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


(dollars in thousands)	State and municipal securities		Corporate securities		Total
Changes in allowance for credit losses on investment securities available for sale:




For the year ended December 31, 2022
Balance, beginning of period	$	—	$	221	$	221
Current-period provision for expected credit losses	—		(221)		(221)
Balance, end of period	$	—	$	—	$	—




For the year ended December 31, 2021
Balance, beginning of period	$	29	$	337	$	366
Current-period provision for expected credit losses	(29)		(116)		(145)
Balance, end of period	$	—	$	221	$	221

Schedule of Unrealized Losses and Fair Values for Investment Securities

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


	December 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	$	1,839	$	24	$	59,865	$	5,172	$	61,704	$	5,196
U.S. government sponsored entities and U.S. agency securities	10,288		40		23,453		4,297		33,741		4,337
Mortgage-backed securities - agency	152,657		9,736		273,353		64,410		426,010		74,146
Mortgage-backed securities - non-agency	1,924		270		18,830		3,898		20,754		4,168
State and municipal securities	35,603		1,662		41,538		6,570		77,141		8,232
Corporate securities	39,595		3,400		46,360		5,911		85,955		9,311
Total available for sale securities	$	241,906	$	15,132	$	463,399	$	90,258	$	705,305	$	105,390


	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

GOODWILL AND INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands		12 Months Ended
	Jun. 17, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finite-lived intangible assets
Gross carrying amount		$ 74,832	$ 72,930
Accumulated amortization		(53,966)	(48,556)
Total		20,866	24,374
Amortization of intangible assets		5,410	5,855	$ 6,504
FNBC Bank & Trust
Finite-lived intangible assets
Intangible assets	$ 1,901
Core deposit intangibles
Finite-lived intangible assets
Gross carrying amount		58,913	57,012
Accumulated amortization		(44,723)	(40,603)
Total		14,190	16,409
Core deposit intangibles \| FNBC Bank & Trust
Finite-lived intangible assets
Intangible assets	$ 1,901
Estimated useful life	10 years
Customer relationship intangibles
Finite-lived intangible assets
Gross carrying amount		15,919	15,918
Accumulated amortization		(9,243)	(7,953)
Total		$ 6,676	$ 7,965

RETIREMENT PLANS - Obligations and Plan Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Retirement Benefits [Abstract]
Projected benefit obligation	$ 13,016	$ 16,904
Accumulated benefit obligation	13,016	16,904
Fair value of plan assets	$ 12,765	$ 16,890

PREMISES, EQUIPMENT AND LEASES (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Summary of Premises and Equipment

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


(dollars in thousands)	2022		2021
Land	$	16,004	$	15,696
Buildings and improvements	71,837		67,143
Furniture and equipment	34,081		33,545
Lease right-of-use assets	7,001		8,428
Total	128,923		124,812
Accumulated depreciation	(50,630)		(45,592)
Premises and equipment, net	$	78,293	$	79,220

Summary of Information Related to Operating Leases

Information related to operating leases for the years ended December 31, 2022 and 2021 was as follows:


	Years Ended December 31,
(dollars in thousands)		2022			2021
Operating lease cost		$	2,096		$	2,080
Operating cash flows from leases		2,507			2,566
Right-of-use assets obtained in exchange for lease obligations		502			1,118
Right-of-use assets derecognized due to terminations or impairment		(123)			(210)
Weighted average remaining lease term		7.2 years			7.6 years
Weighted average discount rate		2.89		%	2.85		%

Summary of Projected Minimum Rental Payments

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


(dollars in thousands)	Amount
Year ending December 31:
2023	$	1,975
2024	1,879
2025	975
2026	843
2027	740
Thereafter	3,556
Total future minimum lease payments	9,968
Less imputed interest	(1,023)
Total operating lease liabilities	$	8,945

DEPOSITS

12 Months Ended

Dec. 31, 2022

Deposits [Abstract]

DEPOSITS

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


(dollars in thousands)	2022		2021
Noninterest-bearing demand	$	1,935,773	$	2,245,701
Interest-bearing:
Checking	1,920,458		1,663,021
Money market	1,184,101		869,067
Savings	661,932		679,115
Time	662,388		653,744
Total deposits	$	6,364,652	$	6,110,648

Included in time deposits are uninsured time certificates of $118.6 million and $143.5 million as of December 31, 2022 and 2021, respectively.

As of December 31, 2022, the scheduled maturities of time deposits were as follows:


(dollars in thousands)	Amount
Year Ending December 31,
2023	$	323,967
2024	247,320
2025	66,861
2026	17,373
2027	6,807
Thereafter	60
Total	$	662,388

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Midland States Bancorp, Inc. (the “Company,” “we,” “our,” or “us”) is a diversified financial holding company headquartered in Effingham, Illinois. Our wholly owned banking subsidiary, Midland States Bank (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

The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and conform to predominant practices within the banking industry. Management of the Company has made a number of estimates and assumptions related to the reporting of assets and liabilities to prepare the consolidated financial statements in conformity with GAAP. Actual results may differ from those estimates. In the opinion of management, all adjustments, consisting of normal recurring accruals considered necessary for a fair presentation of the results of operations for annual periods presented herein, have been included. Certain reclassifications of 2021 and 2020 amounts have been made to conform to the 2022 presentation but do not have an effect on net income or shareholders’ equity.

Principles of Consolidation

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

Subsequent Events

Management has evaluated subsequent events for recognition and disclosure through February 24, 2023, which is the date the financial statements were available to be issued.

Business Combinations

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

Cash and Cash Equivalents and Cash Flows

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

The following table summarizes supplemental cash flow information:


	Years Ended December 31,
(dollars in thousands)	2022		2021		2020
Supplemental disclosures of cash flow information:
Cash payments for:
Interest paid on deposits and borrowed funds	$	55,069	$	31,735	$	47,712
Income tax paid (net of refunds)	36,514		7,759		2,977
Supplemental disclosures of noncash investing and financing activities:
Transfer of loans to loans held for sale	103,357		123,117		542,060
Transfer of loans to other real estate owned	517		805		16,736
Transfer of premises and equipment, net to assets held for sale	—		23		11,344
Transfer of loan servicing rights, at lower of cost or market to loan servicing rights held for sale	23,995		705		—

Investment Securities

The Company classifies its debt investment securities as available for sale or held to maturity at the time of purchase. Securities held to maturity are those debt instruments which the Company has the positive intent and ability to hold until maturity. Securities held to maturity are recorded at cost, adjusted for the amortization of premiums or accretion of discounts. All other debt securities are classified as available for sale. As of December 31, 2022, all investment securities were classified as available for sale. Investment securities available for sale are recorded at fair value with the unrealized gains and losses, net of the related tax effect, included in other comprehensive income. The related accumulated unrealized holding gains and losses are reported as a separate component of shareholders’ equity until realized.

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

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

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

Equity Securities

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

Nonmarketable Equity Securities

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

may invest in additional amounts. FHLB stock and FRB stock are both carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash dividends and stock dividends are reported as income.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are classified as portfolio loans. Portfolio loans are carried at the principal balance outstanding, net of purchase premiums and discounts, and deferred loan fees and costs. Interest income is accrued on the unpaid principal balance. Accrued interest receivable on loans totaled $17.0 million and $15.9 million at December 31, 2022 and 2021, respectively, and was reported in accrued interest receivable on the consolidated balance sheets.

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

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

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

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

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

Allowance for Credit Losses on Loans

The Company adopted the current expected credit loss model under Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) on January 1, 2020 using the modified retrospective approach. The transition adjustment included an increase in the allowance for credit losses on loans of $12.8 million and an increase in the allowance on unfunded commitments of $0.3 million.

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

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

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

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

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


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

For each loan pool, we measure expected credit losses over the life of each loan utilizing a combination of models which measure (i) probability of default (“PD”), which is the likelihood that loan will stop performing or default, (ii) loss given default (“LGD”), which is the expected loss rate for loans in default, (iii) assumed prepayment speed, which is the likelihood that a loan will prepay or pay-off prior to maturity, and (iv) exposure at default (“EAD”), which is the estimated outstanding principal balance of the loans upon default, including the expected funding of unfunded commitments outstanding as of the measurement date. For certain commercial loan portfolios, the PD is calculated using a transition matrix to determine the likelihood of a customer’s risk grade migrating from one specified range of risk grades to a different specified range. Expected

credit losses are calculated as the product of PD (adjusted for prepayment), LGD and EAD. This methodology builds on default probabilities already incorporated into our risk grading process by utilizing pool-specific historical loss rates to calculate expected credit losses. These pool-specific historical loss rates may be adjusted for current macroeconomic assumptions, as further discussed below, and other factors such as differences in underwriting standards, portfolio mix, or when historical asset terms do not reflect the contractual terms of the financial assets being evaluated as of the measurement date. Each time we measure expected credit losses, we assess the relevancy of historical loss information and consider any necessary adjustments to address any differences in asset-specific characteristics.

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

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

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

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

Specific reserves reflect expected credit losses on loans identified for evaluation or individually considered nonperforming. These loans no longer have similar risk characteristics to collectively evaluated loans due to changes in credit risk, borrower circumstances, recognition of write-offs, or cash collections that have been fully applied to principal on the basis

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

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

Loans Held for Sale

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

Mortgage Repurchase Reserve

The Company sells residential mortgage loans to investors in the normal course of business. Residential mortgage loans sold to investors are predominantly conventional residential first lien mortgages originated under our usual underwriting procedures, and are sold on a nonrecourse basis. The Company’s agreements to sell residential mortgage loans usually require general representations and warranties on the underlying loans sold, related to credit information, loan documentation, collateral, and insurability, which if subsequently untrue or breached, could require the Company to indemnify or repurchase certain loans affected. The balance in the repurchase reserve at the balance sheet date reflects the estimated amount of potential loss the Company could incur from repurchasing a loan, as well as loss reimbursements, indemnification, and other “make whole” settlement resolutions. Refer to Note 21 in the consolidated financial statements for additional information on the mortgage repurchase reserve.

Premises and Equipment

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

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

Operating Lease Right of Use Assets and Liabilities

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

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

Other Real Estate Owned

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

Goodwill and Intangible Assets

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

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

Loan Servicing Rights

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

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

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

Loans Servicing Rights Held for Sale

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

Cash Surrender Value of Life Insurance Policies

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

Derivative Financial Instruments

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

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

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

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

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

Allowance for Credit Losses on Unfunded Commitments

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

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on unfunded commitments is adjusted as a provision for credit loss expense on the consolidated income statement. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Expected utilization rates are compared to the current funded portion of the total commitment amount as a practical expedient for funded exposure at default. The allowance for credit losses on unfunded commitments totaled $1.9 million and $2.4 million at December 31, 2022 and 2021, respectively.

Income Taxes

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

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

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

Share-Based Compensation Plans

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

Comprehensive Income

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

Earnings per Share

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

Accounting Guidance 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, allowing for optional expedients and exceptions for accounting related to contracts, hedging relationships and other transactions, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision based on the expectations of when LIBOR would cease being published. In 2021, the UK Financial Conduct Authority delayed the intended cessation date of certain tenors of LIBOR to June 30, 2023.

In December 2022, to ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, the FASB issued ASU No. 2022-06, which defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848.

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.

The Company believes the adoption of this guidance 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 write-offs 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.

SUBORDINATED DEBT - Narrative (Details) - USD ($) $ in Thousands	Oct. 15, 2022	Dec. 31, 2022	Dec. 31, 2021
Subordinated Borrowing [Line Items]
Face amount		$ 100,550	$ 140,550
6.25% Subordinated Debt
Subordinated Borrowing [Line Items]
Face amount	$ 40,000	$ 0	$ 40,000
Redemption price percentage	100.00%
Fixed interest rate	6.25%	0.00%	6.25%

DERIVATIVE INSTRUMENTS

12 Months Ended

Dec. 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 December 31, 2022 and December 31, 2021:


	Notional amount				Fair value gain
(dollars in thousands)	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Derivative instruments (included in other assets):
Interest rate lock commitments	$	2,078	$	66,216	$	49	$	410
Forward commitments to sell mortgage-backed securities	—		60,427		—		—
Total	$	2,078	$	126,643	$	49	$	410


	Notional amount				Fair value loss
(dollars in thousands)	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Derivative instruments (included in other liabilities):
Interest rate lock commitments	$	4,419	$	—	$	15	$	—
Forward commitments to sell mortgage-backed securities	6,669		18,362		—		19
Total	$	11,088	$	18,362	$	15	$	19

During the years ended December 31, 2022, 2021 and 2020, the Company recognized net losses of $0.4 million, $1.5 million and $1.4 million, respectively, on derivative instruments in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income.

Cash Flow Hedges

In the 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 December 31, 2022:


(dollars in thousands)	December 31, 2022
Notional Amount	$	200,000
Fair value loss included in other liabilities	(9,999)
Tax effected amount included in accumulated other comprehensive (loss) income	(7,300)
Average remaining life	3.37
Weighted average pay rate	7.23		%
Weighted average receive rate	5.48		%

The Company had future-starting receive-fixed, pay-variable interest rate swaps on certain FHLB or other fixed-rate advances. These swaps were effective beginning in April 2023. The Company paid or received the net interest amount quarterly based on the respective hedge agreement and included the amount as part of FHLB advances interest expense on the consolidated statements of income. During the fourth quarter of 2022, the Company terminated the future-starting interest rate swap agreements and recognized a net gain of $17.5 million in other income in the consolidated statements of income.


(dollars in thousands)	December 31, 2022		December 31, 2021
Notional Amount	$	—	$	140,000
Fair value gain included in other assets	—		5,095
Tax effected amount included in accumulated other comprehensive (loss) income	—		3,694

Interest Rate Swap Contracts Not Designated as Hedges

The Company entered into interest rate swap contracts sold to commercial customers who wish to modify their interest rate sensitivity. 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 $7.4 million and $7.9 million at December 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 both December 31, 2022 and December 31, 2021, which are included in other assets and other liabilities, respectively, on the consolidated balance sheets.

DEPOSITS - Scheduled Maturities of Time Deposits (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Schedule of maturities of time deposits
2023	$ 323,967
2024	247,320
2025	66,861
2026	17,373
2027	6,807
Thereafter	60
Total	$ 662,388

INCOME TAXES - Statutory Federal Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Expected income taxes	$ 27,266	$ 20,814	$ 6,723
Less income tax effect of:
Tax-exempt income, net	(2,014)	(2,499)	(2,398)
State tax, net of federal benefit	6,274	5,465	1,900
State tax settlement, net of federal expense	0	(5,614)	0
Equity-based compensation benefit	(186)	(93)	239
Disposition of nondeductible goodwill	0	0	2,287
Valuation allowance	58	47	10
Other	(585)	(325)	716
Total income tax expense	$ 30,813	$ 17,795	$ 9,477

ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands			12 Months Ended
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands	Jun. 01, 2021	Aug. 28, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jun. 17, 2022
Business Acquisition
Proceeds from sale of commercial FHA origination platform			$ 0	$ 0	$ 7,502
Income taxes			$ 30,813	$ 17,795	$ 9,477
Disposed of by Sale \| Commercial FHA Origination Platform
Business Acquisition
Proceeds from sale of commercial FHA origination platform		$ 7,500
Goodwill derecognized		10,900
Income taxes		$ 3,000
FNBC Bank & Trust
Business Acquisition
Deposits						$ 79,794
Loans						16,632
Transaction and integration costs						$ 400
ATG Trust
Business Acquisition
Transaction and integration costs	$ 400
Fair value of assets under management	399,700
Assets acquired	$ 2,700

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Principles of Consolidation

Subsequent Events

Management has evaluated subsequent events for recognition and disclosure through February 24, 2023, which is the date the financial statements were available to be issued.

Business Combinations

Cash and Cash Equivalents and Cash Flows

Investment Securities

Equity Securities

Nonmarketable Equity Securities

Loans

Allowance for Credit Losses on Loans

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


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

Loans Held for Sale

Mortgage Repurchase Reserve

Premises and Equipment

Operating Lease Right of Use Assets and Liabilities

Other Real Estate Owned

Goodwill and Intangible Assets

Loan Servicing Rights

Loans Servicing Rights Held for Sale

Cash Surrender Value of Life Insurance Policies

Derivative Financial Instruments

Allowance for Credit Losses on Unfunded Commitments

Income Taxes

Share-Based Compensation Plans

Comprehensive Income

Earnings per Share

Accounting Guidance Issued But Not Yet Adopted

The Company believes the adoption of this guidance will not have a material impact on the consolidated financial statements.

FAIR VALUE OF FINANCIAL INSTRUMENTS - Unobservable inputs (Level 3) (Details) - Corporate securities - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	$ 935	$ 959
Transferred to level 2	(935)	0
Total realized in earnings	6	14
Total unrealized in other comprehensive income	0	(24)
Net settlements (principal and interest)	(6)	(14)
Balance, end of period	$ 0	$ 935

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Anticipated material loss	$ 0
Losses as a result of make whole requests and loan repurchases	0	$ 0	$ 0
Liability for unresolved repurchase demands	200,000	200,000
Commitments to extend credit
Loan commitments	1,276,263,000	994,709,000
Financial guarantees – standby letters of credit
Loan commitments	$ 23,748,000	$ 14,325,000

RETIREMENT PLANS - Narrative (Details) - USD ($)		12 Months Ended
RETIREMENT PLANS - Narrative (Details) - USD ($)	Nov. 30, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Contribution Plan Disclosure [Line Items]
Employer's contribution, discretionary amount		$ 0	$ 0	$ 0
Employer's matching contribution, percentage		50.00%
Employer's matching contribution, percentage of employee compensation		6.00%
Total expense recorded		$ 1,600,000	$ 1,200,000	$ 1,700,000
Minimum
Defined Contribution Plan Disclosure [Line Items]
Employee's contribution, percentage of gross pay		1.00%
Maximum
Defined Contribution Plan Disclosure [Line Items]
Employee's contribution, percentage of gross pay		100.00%
Pension Plan
Defined Contribution Plan Disclosure [Line Items]
Assets transferred	$ 16,600,000

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Assets
Investment securities available for sale	$ 768,234	$ 906,603
Equity securities recorded at fair value	8,626	9,529
Loans held for sale	$ 1,286	$ 32,045
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Losses recognized on assets measured on non-recurring basis
Commercial mortgage servicing rights	$ (1,263)	$ (7,532)	$ (12,337)
Loan servicing rights held for sale	(3,250)	(222)	(1,692)
Assets held for sale	0	0	(12,847)
U.S. Treasury securities
Assets
Investment securities available for sale	81,230	64,917
U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	37,509	33,817
Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	20,754	28,706
State and municipal securities
Assets
Investment securities available for sale	94,636	143,099
Corporate securities
Assets
Investment securities available for sale	85,955	195,794
Recurring member
Assets
Loans held for sale	1,286	32,045
Derivative assets	481	5,883
Total	778,627	954,060
Liabilities
Derivative liabilities	10,446	397
Total	10,446	397
Recurring member \| U.S. Treasury securities
Assets
Investment securities available for sale	81,230	64,917
Recurring member \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	37,509	33,817
Recurring member \| Mortgage-backed securities - agency
Assets
Investment securities available for sale	448,150	440,270
Recurring member \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	20,754	28,706
Recurring member \| State and municipal securities
Assets
Investment securities available for sale	94,636	143,099
Recurring member \| Corporate securities
Assets
Investment securities available for sale	85,955	195,794
Recurring member \| Equity securities
Assets
Equity securities recorded at fair value	8,626	9,529
Recurring member \| Level 1
Assets
Loans held for sale	0	0
Derivative assets	0	0
Total	89,856	74,446
Liabilities
Derivative liabilities	0	0
Total	0	0
Recurring member \| Level 1 \| U.S. Treasury securities
Assets
Investment securities available for sale	81,230	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	8,626	9,529
Recurring member \| Level 2
Assets
Loans held for sale	1,286	32,045
Derivative assets	481	5,883
Total	688,771	878,679
Liabilities
Derivative liabilities	10,446	397
Total	10,446	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	37,509	33,817
Recurring member \| Level 2 \| Mortgage-backed securities - agency
Assets
Investment securities available for sale	448,150	440,270
Recurring member \| Level 2 \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	20,754	28,706
Recurring member \| Level 2 \| State and municipal securities
Assets
Investment securities available for sale	94,636	143,099
Recurring member \| Level 2 \| Corporate securities
Assets
Investment securities available for sale	85,955	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	0	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	0	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	1,205	28,865
Commercial FHA loan servicing rights held for sale	20,745
Nonperforming loans	49,423	36,542
Other real estate owned	6,729	12,059
Assets held for sale	356	2,284
Losses recognized on assets measured on non-recurring basis
Commercial mortgage servicing rights	1,263	7,532	12,337
Loan servicing rights held for sale	3,250	222	1,692
Nonperforming loans	8,892	14,468	24,611
Other real estate owned	4,276	454	1,390
Assets held for sale	0	0	10,404
Total loss on assets measured on a nonrecurring basis	17,681	22,676	$ 50,434
Non recurring member \| Level 1
Assets measured at fair value on a non-recurring basis:
Loan servicing rights	0	0
Commercial FHA loan servicing rights held for sale	0
Nonperforming loans	5,478	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
Commercial FHA loan servicing rights held for sale	20,745
Nonperforming loans	34,406	6,129
Other real estate owned	6,729	12,059
Assets held for sale	356	2,284
Non recurring member \| Level 3
Assets measured at fair value on a non-recurring basis:
Loan servicing rights	1,205	28,865
Commercial FHA loan servicing rights held for sale	0
Nonperforming loans	9,539	6,055
Other real estate owned	0	0
Assets held for sale	$ 0	$ 0

LOAN SERVICING RIGHTS - Loan Servicing Rights and Carrying Value (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Servicing Assets at Fair Value [Line Items]
Serviced Loans	$ 2,556,996	$ 3,003,192
Carrying Value	21,950	28,865
Commercial FHA
Servicing Assets at Fair Value [Line Items]
Serviced Loans	0	2,650,531
Carrying Value	0	27,386
SBA
Servicing Assets at Fair Value [Line Items]
Serviced Loans	46,081	50,043
Carrying Value	656	774
Residential
Servicing Assets at Fair Value [Line Items]
Serviced Loans	255,298	302,618
Carrying Value	549	705
Commercial FHA held for sale
Servicing Assets at Fair Value [Line Items]
Serviced Loans	2,255,617	0
Carrying Value	$ 20,745	$ 0

RETIREMENT PLANS - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Retirement Benefits [Abstract]
Service cost	$ 0	$ 0
Interest cost	$ 445	$ 0
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]	Salaries and employee benefits	Salaries and employee benefits
Expected return on plan assets	$ (828)	$ 0
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Salaries and employee benefits	Salaries and employee benefits
Amortization of transition obligation	$ 14	$ 0
Net periodic benefit cost	$ (369)	$ 0

GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	Dec. 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

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

LOAN SERVICING RIGHTS - Changes in MSR (Details) - Commercial FHA - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Loan servicing rights:
Loan servicing rights, Beginning balance	$ 27,386	$ 38,322	$ 57,637
Servicing rights transferred to held for sale	(23,995)	0	1,128
Amortization	(1,907)	(2,965)	(3,162)
Refinancing fee received from third party	(221)	(439)	0
Permanent impairment	(1,263)	(7,532)	(17,281)
Loan servicing rights, Ending balance	0	27,386	38,322
Fair value, Beginning of period	0	28,368	38,322	$ 52,693
Fair value, End of period	$ 0	$ 28,368	$ 38,322

ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2022

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition

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


(dollars in thousands)	FNBC
Assets acquired:
Cash and cash equivalents	$	60,275
Loans	16,632
Premises and equipment, net	950
Accrued interest receivable	36
Intangible assets	1,901
Total assets acquired	$	79,794
Liabilities assumed:
Deposits	$	79,794
Total liabilities assumed	$	79,794
Intangible assets:
Core deposit intangible	$	1,901
Estimated useful life	10 years

LOANS - Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Summary of loans
Collateral dependent loans	$ 27,681	$ 20,813
Real Estate
Summary of loans
Collateral dependent loans	26,077	14,909
Blanket Lien
Summary of loans
Collateral dependent loans	1,604	5,402
Equipment
Summary of loans
Collateral dependent loans	0	502
Commercial \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	1,604	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	1,604	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		502
Commercial other \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans		0
Commercial other \| Commercial Loan Portfolio \| Blanket Lien
Summary of loans
Collateral dependent loans		0
Commercial other \| Commercial Loan Portfolio \| Equipment
Summary of loans
Collateral dependent loans		502
Commercial real estate non-owner occupied \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	13,033	11,604
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	13,033	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	3,874	1,336
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	3,874	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	8,950	1,969
Multi-family \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	8,950	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
Residential first lien \| Residential Portfolio Segment
Summary of loans
Collateral dependent loans	220
Residential first lien \| Residential Portfolio Segment \| Real Estate
Summary of loans
Collateral dependent loans	220
Residential first lien \| Residential Portfolio Segment \| Blanket Lien
Summary of loans
Collateral dependent loans	0
Residential first lien \| Residential Portfolio Segment \| Equipment
Summary of loans
Collateral dependent loans	$ 0

COMMITMENTS, CONTINGENCIES AND CREDIT RISK

12 Months Ended

Dec. 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 as of December 31, 2022 and 2021 were as follows:


(dollars in thousands)	2022		2021
Commitments to extend credit	$	1,276,263	$	994,709
Financial guarantees – standby letters of credit	23,748		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 years ended 2022, 2021, and 2020. The liability for unresolved repurchase demands totaled $0.2 million at December 31, 2022 and 2021.

PREMISES, EQUIPMENT AND LEASES - Narrative (Details) ft² in Thousands, $ in Thousands	4 Months Ended	12 Months Ended
	Dec. 31, 2020 USD ($) ft² branch	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($) ft² branch
Property, Plant and Equipment [Line Items]
Depreciation on premises and equipment		$ 4,842	$ 5,506	$ 6,942
Number of branches closed \| branch	13			13
Percentage of branch network closed	20.00%			20.00%
Area of vacated office space \| ft²	23			23
Impairment related to facilities optimization	$ 12,700	$ 0	0	$ 12,847
Renewal term of lease (in years)		10 years
Operating lease right-of-use asset		$ 7,000	$ 8,400
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]		Other assets	Other assets
Operating lease liabilities		$ 8,945	$ 10,700
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]		Accrued interest payable and other liabilities	Accrued interest payable and other liabilities
Net rent expense under operating leases		$ 1,500	$ 1,400	$ 2,300
Right-of-use Assets
Property, Plant and Equipment [Line Items]
Impairment related to facilities optimization	2,400
Other
Property, Plant and Equipment [Line Items]
Impairment related to facilities optimization	$ 800
Minimum
Property, Plant and Equipment [Line Items]
Remaining lease terms		1 month
Maximum
Property, Plant and Equipment [Line Items]
Remaining lease terms		10 years

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables)

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of Loan Commitments

The commitments are principally tied to variable rates. Loan commitments as of December 31, 2022 and 2021 were as follows:


(dollars in thousands)	2022		2021
Commitments to extend credit	$	1,276,263	$	994,709
Financial guarantees – standby letters of credit	23,748		14,325

INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

Investment Securities Available for Sale

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


	December 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	$	86,313	$	113	$	5,196	$	—	$	81,230
U.S. government sponsored entities and U.S. agency securities	41,775		71		4,337		—		37,509
Mortgage-backed securities - agency	522,028		268		74,146		—		448,150
Mortgage-backed securities - non-agency	24,922		—		4,168		—		20,754
State and municipal securities	102,719		149		8,232		—		94,636
Corporate securities	95,266		—		9,311		—		85,955
Total available for sale securities	$	873,023	$	601	$	105,390	$	—	$	768,234


	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

Investment securities with a carrying amount of $441.0 million and $371.0 million were pledged for public deposits at December 31, 2022 and 2021, respectively.


(dollars in thousands)	Amortized cost		Fair value
Investment securities available for sale
Within one year	$	32,553	$	32,151
After one year through five years	130,347		122,407
After five years through ten years	135,682		120,722
After ten years	27,491		24,050
Mortgage-backed securities	546,950		468,904
Total available for sale securities	$	873,023	$	768,234

Proceeds and gross realized gains and losses on sales of investment securities available for sale for the years ended 2022, 2021, and 2020 are summarized as follows:



(dollars in thousands)	2022		2021		2020
Investment securities available for sale
Proceeds from sales	$	136,403	$	14,777	$	28,256
Gross realized gains on sales	829		537		1,721
Gross realized losses on sales	(1,059)		—		—


(dollars in thousands)	State and municipal securities		Corporate securities		Total
Changes in allowance for credit losses on investment securities available for sale:




For the year ended December 31, 2022
Balance, beginning of period	$	—	$	221	$	221
Current-period provision for expected credit losses	—		(221)		(221)
Balance, end of period	$	—	$	—	$	—




For the year ended December 31, 2021
Balance, beginning of period	$	29	$	337	$	366
Current-period provision for expected credit losses	(29)		(116)		(145)
Balance, end of period	$	—	$	221	$	221


	December 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	$	1,839	$	24	$	59,865	$	5,172	$	61,704	$	5,196
U.S. government sponsored entities and U.S. agency securities	10,288		40		23,453		4,297		33,741		4,337
Mortgage-backed securities - agency	152,657		9,736		273,353		64,410		426,010		74,146
Mortgage-backed securities - non-agency	1,924		270		18,830		3,898		20,754		4,168
State and municipal securities	35,603		1,662		41,538		6,570		77,141		8,232
Corporate securities	39,595		3,400		46,360		5,911		85,955		9,311
Total available for sale securities	$	241,906	$	15,132	$	463,399	$	90,258	$	705,305	$	105,390


	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

At December 31, 2022, 391 investment securities available for sale had unrealized losses with aggregate depreciation of 13.00% from their amortized cost basis. 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. The issuers are of high credit quality and all principal amounts are expected to be paid when securities mature. 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.

SHARE-BASED COMPENSATION - Fair Value Assumptions (Details)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Dividend yield	4.24%
Expected volatility	23.81%
Risk free interest rate	4.23%
Expected life	6 years 3 months

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY—(UNAUDITED) - USD ($) $ in Thousands	Total	Cumulative effect of adjustment	Adjusted balance	Preferred stock	Preferred stock Adjusted balance	Common stock	Common stock Adjusted balance	Capital surplus	Capital surplus Adjusted balance	Retained earnings	Retained earnings Adjusted balance	Accumulated other comprehensive (loss) income	Accumulated other comprehensive (loss) income Adjusted balance
Beginning Balance at Dec. 31, 2019	$ 661,911	$ (7,172)	$ 654,739	$ 0	$ 0	$ 244	$ 244	$ 488,305	$ 488,305	$ 165,920	$ 158,748	$ 7,442	$ 7,442
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	22,537									22,537
Other comprehensive income (loss)	3,989											3,989
Common dividends declared	(24,958)									(24,958)
Common stock repurchased	(39,615)					(23)		(39,592)
Share-based compensation expense	2,175							2,175
Issuance of common stock under employee benefit plans	2,524					2		2,522
Ending Balance at Dec. 31, 2020	621,391			0		223		453,410		156,327		11,431
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	81,317									81,317
Other comprehensive income (loss)	(6,194)											(6,194)
Common dividends declared	(25,172)									(25,172)
Common stock repurchased	(11,692)					(5)		(11,687)
Share-based compensation expense	1,938							1,938
Issuance of common stock under employee benefit plans	2,249					3		2,246
Ending Balance at Dec. 31, 2021	663,837			0		221		445,907		212,472		5,237
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	99,025									99,025
Other comprehensive income (loss)	(89,034)											(89,034)
Issuance of preferred stock, net of offering costs	110,548			110,548
Common dividends declared	(25,923)									(25,923)
Preferred dividends	(3,169)									(3,169)
Common stock repurchased	(1,109)					(1)		(1,108)
Share-based compensation expense	2,211							2,211
Issuance of common stock under employee benefit plans	2,188					2		2,186
Ending Balance at Dec. 31, 2022	$ 758,574			$ 110,548		$ 222		$ 449,196		$ 282,405		$ (83,797)

LOANS (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Summary of Loans

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


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

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


(dollars in thousands)	December 31, 2022		December 31, 2021
Commercial:
Commercial	$	786,877	$	770,670
Commercial other	727,697		679,518
Commercial real estate:
Commercial real estate non-owner occupied	1,591,399		1,105,333
Commercial real estate owner occupied	496,786		469,658
Multi-family	277,889		171,875
Farmland	67,085		69,962
Construction and land development	320,882		193,749
Total commercial loans	4,268,615		3,460,765
Residential real estate:
Residential first lien	304,243		274,412
Other residential	61,851		63,739
Consumer:
Consumer	105,880		106,008
Consumer other	1,074,134		896,597
Lease financing	491,744		423,280
Total loans	$	6,306,467	$	5,224,801

Schedule Of Changes In Financing Receivable Related Parties Roll Forward

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


	Years Ended December 31,
(dollars in thousands)		2022		2021
Beginning balance		$	13,869	$	19,693
New loans and other additions		9,804		4,745
Repayments and other reductions		(3,897)		(10,569)
Ending balance		$	19,776	$	13,869

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 years ended December 31, 2022, 2021 and 2020:


	Commercial Loan Portfolio						Other Loan Portfolio
(dollars in thousands)	Commercial		Commercial real estate		Construction and land development		Residential real estate		Consumer		Lease financing		Total







Changes in allowance for credit losses on loans for the year ended December 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	3,984		10,396		1,439		1,698		1,813		(533)		18,797
Charge-offs	(4,121)		(4,106)		(6)		(344)		(1,229)		(1,297)		(11,103)
Recoveries	401		7		30		252		457		1,148		2,295
Balance, end of period	$	14,639	$	29,290	$	2,435	$	4,301	$	3,599	$	6,787	$	61,051








Changes in allowance for credit losses on loans for the year ended December 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	648		1,031		(234)		(1,085)		864		2,726		3,950
Charge-offs	(6,465)		(3,524)		(448)		(398)		(1,158)		(3,427)		(15,420)
Recoveries	341		21		221		249		514		743		2,089
Balance, end of period	$	14,375	$	22,993	$	972	$	2,695	$	2,558	$	7,469	$	51,062

Changes in allowance for credit losses on loans for the year ended December 31, 2020:
Balance, beginning of period	$	10,031	$	10,272	$	290	$	2,499	$	2,642	$	2,294	$	28,028
Impact of adopting ASC 326	2,327		4,104		724		1,211		(594)		774		8,546
Impact of adopting ACS 326 - PCD loans	1,045		1,311		809		1,015		57		—		4,237
Provision for credit losses on loans	11,890		23,091		(121)		(458)		1,212		7,535		43,149
Charge-offs	(5,589)		(13,637)		(376)		(522)		(1,624)		(3,706)		(25,454)
Recoveries	147		324		107		184		645		530		1,937
Balance, end of period	$	19,851	$	25,465	$	1,433	$	3,929	$	2,338	$	7,427	$	60,443

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 December 31, 2022 and December 31, 2021:


	December 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	$	1,910	$	1,111	$	3,021	$	4,681	$	2,275	$	6,956
Commercial other	3,169		—		3,169		4,467		—		4,467
Commercial real estate:
Commercial real estate non-owner occupied	1,345		11,899		13,244		1,914		9,912		11,826
Commercial real estate owner occupied	7,118		—		7,118		2,164		1,340		3,504
Multi-family	154		8,949		9,103		201		1,967		2,168
Farmland	25		—		25		155		—		155
Construction and land development	202		—		202		83		—		83
Total commercial loans	13,923		21,959		35,882		13,665		15,494		29,159
Residential real estate:
Residential first lien	2,925		572		3,497		3,116		832		3,948
Other residential	871		—		871		836		—		836
Consumer:
Consumer	120		—		120		110		—		110

Lease financing	1,606		—		1,606		1,510		—		1,510
Total loans	$	19,445	$	22,531	$	41,976	$	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 December 31, 2022 and December 31, 2021:


	Type of Collateral
(dollars in thousands)	Real Estate		Blanket Lien		Equipment		Total
December 31, 2022
Commercial:
Commercial	$	—	$	1,604	$	—	$	1,604

Commercial real estate:
Non-owner occupied	13,033		—		—		13,033
Owner occupied	3,874		—		—		3,874
Multi-family	8,950		—		—		8,950

Residential real estate
Residential first lien	220		—		—		220

Total collateral dependent loans	$	26,077	$	1,604	$	—	$	27,681

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 December 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	$	7	$	112	$	—	$	119	$	3,021	$	783,737	$	786,877
Commercial other	6,035		2,365		—		8,400		3,169		716,128		727,697
Commercial real estate:
Commercial real estate non-owner occupied	1,008		999		—		2,007		13,244		1,576,148		1,591,399
Commercial real estate owner occupied	73		—		—		73		7,118		489,595		496,786
Multi-family	—		—		—		—		9,103		268,786		277,889
Farmland	—		—		—		—		25		67,060		67,085
Construction and land development	—		6,000		—		6,000		202		314,680		320,882
Total commercial loans	7,123		9,476		—		16,599		35,882		4,216,134		4,268,615
Residential real estate:
Residential first lien	82		456		428		966		3,497		299,780		304,243
Other residential	188		13		—		201		871		60,779		61,851
Consumer:
Consumer	139		18		12		169		120		105,591		105,880
Consumer other	5,381		3,559		733		9,673		—		1,064,461		1,074,134
Lease financing	4,415		1,522		—		5,937		1,606		484,201		491,744
Total loans	$	17,328	$	15,044	$	1,173	$	33,545	$	41,976	$	6,230,946	$	6,306,467

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


	December 31, 2022						December 31, 2021
(dollars in thousands)	Accruing (1)		Non-accrual (2)		Total		Accruing (1)		Non-accrual (2)		Total
Commercial	$	1,663	$	484	$	2,147	$	833	$	1,422	$	2,255
Commercial real estate	112		2,387		2,499		1,522		3,302		4,824
Construction and land development	27		—		27		37		—		37
Residential real estate	3,653		712		4,365		3,128		784		3,912
Consumer	56		—		56		98		—		98
Lease financing	763		21		784		1,394		241		1,635
Total loans	$	6,274	$	3,604	$	9,878	$	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 year ended December 31, 2022
Troubled debt restructurings:
Number of loans	5		1		—		12		4		2		24
Pre-modification outstanding balance	$	1,353	$	6	$	—	$	611	$	108	$	84	$	2,162
Post-modification outstanding balance	1,353		6		—		596		106		84		2,145















For the year ended December 31, 2021
Troubled debt restructurings:
Number of loans	16		3		1		10		6		9		45
Pre-modification outstanding balance	$	2,294	$	1,639	$	49	$	551	$	134	$	1,635	$	6,302
Post-modification outstanding balance	2,178		1,539		—		513		89		1,635		5,954




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

Schedule of Loans Credit Equality Indicators

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


			December 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	$	111,087	$	102,966	$	61,751	$	28,063	$	12,547	$	45,168	$	404,100	$	765,682
		Special mention	3,559		2,106		—		227		551		3,154		159		9,756
		Substandard	—		—		—		206		1,722		3,915		2,575		8,418
		Substandard – nonaccrual	—		340		—		132		83		246		2,220		3,021
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	114,646		105,412		61,751		28,628		14,903		52,483		409,054		786,877

	Commercial other	Acceptable credit quality	283,465		153,788		105,980		64,218		15,459		163		96,509		719,582
		Special mention	—		—		754		2,331		455		—		55		3,595
		Substandard	250		—		—		12		80		—		848		1,190
		Substandard – nonaccrual	524		1,247		444		463		491		—		—		3,169
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	161		—		—		—		—		—		—		161
		Subtotal	284,400		155,035		107,178		67,024		16,485		163		97,412		727,697

Commercial real estate	Non-owner occupied	Acceptable credit quality	679,040		403,952		145,235		72,504		18,249		160,992		4,833		1,484,805
		Special mention	1,407		186		477		10,633		195		8,452		—		21,350
		Substandard	569		—		7,458		32,731		1,587		29,655		—		72,000
		Substandard – nonaccrual	—		701		—		48		10,246		2,249		—		13,244
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	681,016		404,839		153,170		115,916		30,277		201,348		4,833		1,591,399

	Owner occupied	Acceptable credit quality	120,141		122,321		64,720		31,916		29,454		88,928		4,305		461,785
		Special mention	—		1,161		—		7,917		—		12,161		22		21,261
		Substandard	141		272		79		1,984		—		3,771		375		6,622
		Substandard – nonaccrual	155		4,165		225		146		333		1,790		304		7,118
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	120,437		127,919		65,024		41,963		29,787		106,650		5,006		496,786

	Multi-family	Acceptable credit quality	163,647		31,605		29,458		208		24,490		14,574		1,101		265,083
		Special mention	—		—		—		—		—		—		—		—
		Substandard	—		—		—		—		—		3,703		—		3,703
		Substandard – nonaccrual	—		927		—		113		—		8,063		—		9,103
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	163,647		32,532		29,458		321		24,490		26,340		1,101		277,889

	Farmland	Acceptable credit quality	8,659		16,138		13,467		4,117		3,129		19,102		1,593		66,205
		Special mention	—		—		—		—		—		159		—		159
		Substandard	—		14		—		23		113		347		199		696
		Substandard – nonaccrual	—		—		—		—		—		25		—		25
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	8,659		16,152		13,467		4,140		3,242		19,633		1,792		67,085

Construction and land development		Acceptable credit quality	171,243		79,747		10,676		8,388		98		1,420		37,997		309,569
		Special mention	—		—		—		—		—		210		—		210
		Substandard	—		6,000		—		—		2,415		—		—		8,415
		Substandard – nonaccrual	—		—		—		202		—		—		—		202
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	2,112		337		8		—		—		29		—		2,486
		Subtotal	173,355		86,084		10,684		8,590		2,513		1,659		37,997		320,882

Total		Acceptable credit quality	1,537,282		910,517		431,287		209,414		103,426		330,347		550,438		4,072,711
		Special mention	4,966		3,453		1,231		21,108		1,201		24,136		236		56,331
		Substandard	960		6,286		7,537		34,956		5,917		41,391		3,997		101,044
		Substandard – nonaccrual	679		7,380		669		1,104		11,153		12,373		2,524		35,882
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	2,273		337		8		—		—		29		—		2,647
Total commercial loans			$	1,546,160	$	927,973	$	440,732	$	266,582	$	121,697	$	408,276	$	557,195	$	4,268,615


			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 December 31, 2022 and December 31, 2021:


			December 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	$	75,449	$	38,774	$	31,566	$	20,780	$	21,691	$	109,067	$	336	$	297,663
		Nonperforming	101		—		104		414		987		4,974		—		6,580
		Subtotal	75,550		38,774		31,670		21,194		22,678		114,041		336		304,243

	Other residential	Performing	1,722		496		534		1,060		1,496		1,515		53,159		59,982
		Nonperforming	17		—		—		7		18		208		1,619		1,869
		Subtotal	1,739		496		534		1,067		1,514		1,723		54,778		61,851

Consumer	Consumer	Performing	32,561		40,374		9,411		3,476		2,768		14,756		2,346		105,692
		Nonperforming	33		50		7		1		13		79		5		188
		Subtotal	32,594		40,424		9,418		3,477		2,781		14,835		2,351		105,880

	Consumer other	Performing	669,015		260,360		92,148		34,501		6,637		5,430		5,310		1,073,401
		Nonperforming	733		—		—		—		—		—		—		733
		Subtotal	669,748		260,360		92,148		34,501		6,637		5,430		5,310		1,074,134

Leases financing		Performing	215,084		110,294		84,458		54,684		21,767		3,088		—		489,375
		Nonperforming	—		522		736		818		254		39		—		2,369
		Subtotal	215,084		110,816		85,194		55,502		22,021		3,127		—		491,744

Total		Performing	993,831		450,298		218,117		114,501		54,359		133,856		61,151		2,026,113
		Nonperforming	884		572		847		1,240		1,272		5,300		1,624		11,739
Total other loans			$	994,715	$	450,870	$	218,964	$	115,741	$	55,631	$	139,156	$	62,775	$	2,037,852


			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

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets
Cash and due from banks	$ 143,035	$ 673,297
Federal funds sold	7,286	7,074
Cash and cash equivalents	150,321	680,371
Investment securities available for sale, at fair value (allowance for credit losses of $0 and $221 at December 31, 2022 and December 31, 2021, respectively)	768,234	906,603
Equity securities, at fair value	8,626	9,529
Loans	6,306,467	5,224,801
Allowance for credit losses on loans	(61,051)	(51,062)
Total loans, net	6,245,416	5,173,739
Loans held for sale	1,286	32,045
Premises and equipment, net	78,293	79,220
Other real estate owned	6,729	12,059
Nonmarketable equity securities	46,201	36,341
Accrued interest receivable	20,313	19,470
Loan servicing rights, at lower of cost or fair value	1,205	28,865
Commercial FHA mortgage loan servicing rights held for sale	20,745	0
Goodwill	161,904	161,904
Other intangible assets, net	20,866	24,374
Company-owned life insurance	150,443	148,378
Other assets	174,919	130,907
Total assets	7,855,501	7,443,805
Deposits:
Noninterest-bearing demand deposits	1,935,773	2,245,701
Interest-bearing deposits	4,428,879	3,864,947
Total deposits	6,364,652	6,110,648
Short-term borrowings	42,311	76,803
Federal Home Loan Bank advances and other borrowings	460,000	310,171
Subordinated debt	99,772	139,091
Trust preferred debentures	49,975	49,374
Accrued interest payable and other liabilities	80,217	93,881
Total liabilities	7,096,927	6,779,968
Shareholders’ Equity:
Preferred stock, $2.00 par value; 4,000,000 shares authorized; 115,000 Series A shares, $1,000 per share liquidation preference, issued and outstanding at December 31, 2022	110,548	0
Common stock, $0.01 par value; 40,000,000 shares authorized; 22,214,913 and 22,050,537 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively	222	221
Capital surplus	449,196	445,907
Retained earnings	282,405	212,472
Accumulated other comprehensive (loss) income, net of tax	(83,797)	5,237
Total shareholders’ equity	758,574	663,837
Total liabilities and shareholders’ equity	$ 7,855,501	$ 7,443,805

TRUST PREFERRED DEBENTURES - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Mar. 26, 2004
TRUST PREFERRED DEBENTURES
Face amount	$ 100,550	$ 140,550
Total trust preferred debentures
TRUST PREFERRED DEBENTURES
Face amount	64,951
Investment Owned, at Fair Value	1,900
Midland Trust
TRUST PREFERRED DEBENTURES
Pool issued			$ 10,000
Liquidation amount per security (in USD per share)			$ 1,000
Midland Trust \| Trust preferred debentures maturing April 23, 2034
TRUST PREFERRED DEBENTURES
Face amount	$ 10,310		$ 10,300

SHARE-BASED COMPENSATION - Restricted stock awards (Details) - Restricted stock and restricted stock unit awards	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Number outstanding
Nonvested, beginning of year (in shares) \| shares	261,818
Granted during the year (in shares) \| shares	121,316
Vested during the year (in shares) \| shares	(87,239)
Forfeited during the year (in shares) \| shares	(25,917)
Nonvested, end of year (in shares) \| shares	269,978
Weighted average grant due fair value
Nonvested at December 31, 2018 (in dollars per shares) \| $ / shares	$ 23.62
Granted during the year (in dollars per shares) \| $ / shares	28.34
Vested during the year (in dollars per shares) \| $ / shares	24.20
Forfeited during the year (in dollars per shares) \| $ / shares	23.83
Nonvested at December 31, 2019 (in dollars per shares) \| $ / shares	$ 25.53

TRUST PREFERRED DEBENTURES

12 Months Ended

Dec. 31, 2022

TRUST PREFERRED DEBENTURES

TRUST PREFERRED DEBENTURES

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

In addition, the Company assumed the obligations of subordinated debentures in conjunction with the acquisitions of Grant Park Bancshares, Inc., Love Savings Holding Company, and Centrue Financial Corporation. The subordinated debentures were issued to Grant Park Statutory Trust I, Love Savings/Heartland Capital Trust III, Love Savings/Heartland Capital Trust IV and Centrue Statutory Trust II and were recorded by the Company at fair value at the acquisition date with the discount amortizing into interest expense over the life of the liability.

The Company is not considered the primary beneficiary of the trusts; therefore, the trusts are not consolidated in the Company’s financial statements, but rather the subordinated debentures, net of unamortized purchase discount, are shown as liabilities. The Company’s investments in the common stock of the trusts, totaling $1.9 million, are included in other assets.

The following table summarizes the terms of each issuance:


							At December 31, 2022				At December 31, 2021
(dollars in thousands)	Date of issuance	Issuance Amount		Shares Issued	Variable Rate	Maturity Date	Carrying Amount		Rate		Carrying Amount		Rate
Grant Park Statutory Trust I	12/19/2003	$	3,093	3,000	LIBOR plus 2.85%	1/23/2034	$	2,410	7.26	%	$	2,363	2.98	%
Midland States Preferred Securities Trust	3/26/2004	10,310		10,000	LIBOR plus 2.75%	4/23/2034	10,282		7.07	%	10,279		2.87	%
Centrue Statutory Trust II	4/22/2004	10,310		10,000	LIBOR plus 2.65%	6/17/2034	8,358		7.39	%	8,255		2.87	%
Love Savings/Heartland Capital Trust III	11/30/2006	20,619		20,000	LIBOR plus 1.75%	12/31/2036	14,870		6.52	%	14,647		1.95	%
Love Savings/Heartland Capital Trust IV	6/6/2007	20,619		20,000	LIBOR plus 1.47%	9/6/2037	14,055		6.20	%	13,830		1.65	%
Total trust preferred debentures		$	64,951				$	49,975			$	49,374

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

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

DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Dec. 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)	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Derivative instruments (included in other assets):
Interest rate lock commitments	$	2,078	$	66,216	$	49	$	410
Forward commitments to sell mortgage-backed securities	—		60,427		—		—
Total	$	2,078	$	126,643	$	49	$	410


	Notional amount				Fair value loss
(dollars in thousands)	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Derivative instruments (included in other liabilities):
Interest rate lock commitments	$	4,419	$	—	$	15	$	—
Forward commitments to sell mortgage-backed securities	6,669		18,362		—		19
Total	$	11,088	$	18,362	$	15	$	19

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


(dollars in thousands)	December 31, 2022
Notional Amount	$	200,000
Fair value loss included in other liabilities	(9,999)
Tax effected amount included in accumulated other comprehensive (loss) income	(7,300)
Average remaining life	3.37
Weighted average pay rate	7.23		%
Weighted average receive rate	5.48		%


(dollars in thousands)	December 31, 2022		December 31, 2021
Notional Amount	$	—	$	140,000
Fair value gain included in other assets	—		5,095
Tax effected amount included in accumulated other comprehensive (loss) income	—		3,694

CONSOLIDATED STATEMENTS OF CASH FLOWS—(UNAUDITED) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 99,025	$ 81,317	$ 22,537
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	20,126	3,393	44,361
Depreciation on premises and equipment	4,842	5,506	6,942
Amortization of intangible assets	5,410	5,855	6,504
Amortization of operating lease right-of-use asset	1,831	1,742	2,547
Amortization of loan servicing rights	2,294	3,242	3,518
Share-based compensation expense	2,211	1,938	2,175
Increase in cash surrender value of life insurance	(3,320)	(3,451)	(3,581)
Gain on proceeds from company-owned life insurance	(264)	(1,045)	0
Investment securities amortization, net	2,311	4,196	3,411
Gain on termination of hedged interest rate swaps	(17,531)	(2,159)	0
(Loss) gain on sales of investment securities, net	230	(537)	(1,721)
Loss (gain) on sales of other real estate owned	118	(473)	(78)
Impairment on other real estate owned	4,277	454	1,390
Origination of loans held for sale	(134,612)	(504,801)	(786,203)
Proceeds from sales of loans held for sale	269,958	739,954	1,218,950
Gain on sale of loans held for sale	(844)	(4,952)	(14,071)
Impairment on commercial mortgage servicing rights	1,263	7,532	12,337
Loss on mortgage servicing rights held for sale	3,250	222	1,692
Impairment related to facilities optimization	0	0	12,847
Net change in operating assets and liabilities:
Accrued interest receivable	(807)	4,075	(7,199)
Other assets	(9,434)	(31,974)	(31,961)
Accrued expenses and other liabilities	(13,579)	24,404	4,750
Net cash provided by operating activities	236,755	334,438	499,147
Cash flows from investing activities:
Purchases of investment securities available for sale	(192,349)	(469,789)	(266,514)
Proceeds from sales of investment securities available for sale	136,403	14,777	28,256
Maturities and payments on investment securities available for sale	85,077	208,377	214,036
Purchases of equity securities	(511)	(260)	(3,345)
Net increase in loans	(1,177,598)	(258,401)	(1,279,913)
Proceeds from sale of commercial FHA origination platform	0	0	7,502
Purchases of premises and equipment	(3,470)	(2,718)	(2,589)
Proceeds from sale of premises and equipment	175	647	0
Purchases of nonmarketable equity securities	(24,787)	0	(12,091)
Proceeds from sales of nonmarketable equity securities	14,927	20,255	0
Proceeds from sales of other real estate owned	1,453	9,210	2,225
Purchases of company-owned life insurance	0	(550)	0
Proceeds from settlements of company-owned life insurance	1,518	2,672	0
Net cash acquired (paid) in acquisitions	60,275	(2,715)	0
Net cash used in investing activities	(1,098,887)	(478,495)	(1,312,433)
Cash flows from financing activities:
Net increase in deposits	174,210	1,009,632	556,762
Net (decrease) increase in short-term borrowings	(34,492)	7,846	(13,072)
Proceeds from FHLB borrowings	3,540,000	500,000	729,000
Payments made on FHLB borrowings and other borrowings	(3,390,171)	(977,536)	(447,842)
FHLB advances prepayment fees	0	8,536	4,872
Payments made on subordinated debt	(40,000)	(31,075)	(7,443)
Subordinated debt prepayment fees	0	0	193
Proceeds from issuance of preferred stock	110,548	0	0
Cash dividends paid on preferred stock	(3,169)	0	0
Cash dividends paid on common stock	(25,923)	(25,172)	(24,958)
Common stock repurchased	(1,109)	(11,692)	(39,615)
Proceeds from issuance of common stock under employee benefit plans	2,188	2,249	2,524
Net cash provided by financing activities	332,082	482,788	760,421
Net (decrease) increase in cash and cash equivalents	(530,050)	338,731	(52,865)
Cash and cash equivalents:
Beginning of period	680,371	341,640	394,505
End of period	$ 150,321	$ 680,371	$ 341,640

EARNINGS PER COMMON SHARE (Tables)

12 Months Ended

Dec. 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 years ended 2022, 2021, and 2020:


	Years Ended December 31,
(dollars in thousands, except per share data)		2022		2021		2020
Net income		$	99,025	$	81,317	$	22,537
Preferred dividends declared		(3,169)		—		—

Net income available to common shareholders		95,856		81,317		22,537
Common shareholder dividends		(25,628)		(24,912)		(24,699)
Unvested restricted stock award dividends		(295)		(260)		(259)
Undistributed earnings to unvested restricted stock awards		(809)		(564)		—
Undistributed earnings to common shareholders		$	69,124	$	55,581	$	(2,421)
Basic
Distributed earnings to common shareholders		$	25,628	$	24,912	$	24,699
Undistributed earnings to common shareholders		69,124		55,581		(2,421)
Total common shareholders earnings, basic		$	94,752	$	80,493	$	22,278
Diluted
Distributed earnings to common shareholders		$	25,628	$	24,912	$	24,699
Undistributed earnings to common shareholders		69,124		55,581		(2,421)
Total common shareholders earnings		94,752		80,493		22,278
Add back:
Undistributed earnings reallocated from unvested restricted stock awards		2		2		—
Total common shareholders earnings, diluted		$	94,754	$	80,495	$	22,278
Weighted average common shares outstanding, basic		22,341,498		22,481,389		23,336,881
Options		54,200		65,964		9,245
Weighted average common shares outstanding, diluted		22,395,698		22,547,353		23,346,126
Basic earnings per common share		$	4.24	$	3.58	$	0.95
Diluted earnings per common share		4.23		3.57		0.95

Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2022	Feb. 14, 2023	Jun. 30, 2022
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-35272
Entity Registrant Name	MIDLAND STATES BANCORP, INC.
Entity Incorporation, State or Country Code	IL
Entity Tax Identification Number	37-1233196
Entity Address, Address Line One	1201 Network Centre Drive
Entity Address, City or Town	Effingham
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	62401
City Area Code	217
Local Phone Number	342-7321
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 510,979,215
Entity Common Stock, Shares Outstanding (in shares)		22,227,528
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Portions of the Proxy Statement for the Annual Meeting of Shareholders to be held May 1, 2023, to be filed within 120 days after December 31, 2022, are incorporated by reference into Part III of this Form 10-K to the extent indicated in such part.
Entity Central Index Key	0001466026
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Common stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	MSBI
Security Exchange Name	NASDAQ
Depository Shares
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/40th interest in a share of 7.75% fixed rate reset non-cumulative perpetual preferred stock, Series A
Trading Symbol	MSBIP
Security Exchange Name	NASDAQ

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

12 Months Ended

Dec. 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 years ended 2022, 2021, and 2020.


	Years Ended December 31,
(dollars in thousands)		2022		2021		2020
Noninterest income - in-scope of Topic 606
Wealth management revenue:
Trust management/administration fees		$	21,704	$	20,954	$	16,953
Investment advisory fees		—		1,282		2,009
Investment brokerage fees		2,068		2,050		1,465
Other		1,936		2,525		2,375
Service charges on deposit accounts:
Nonsufficient fund fees		6,404		5,339		5,589
Other		3,076		3,009		3,014
Interchange revenues		13,879		14,500		12,266
Other income:
Merchant services revenue		1,590		1,511		1,381
Other		3,039		3,850		3,161
Noninterest income - out-of-scope of Topic 606		26,195		14,879		13,036
Total noninterest income		$	79,891	$	69,899	$	61,249

FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying values and fair value (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets
Accrued interest receivable	$ 20,313	$ 19,470
Liabilities
Trust preferred debentures	49,975	49,374
Level 1
Assets
Cash and due from banks	143,035	673,297
Federal funds sold	7,286	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
Level 2
Assets
Cash and due from banks	0	0
Federal funds sold	0	0
Loans, net	0	0
Accrued interest receivable	20,313	19,470
Liabilities
Deposits	6,344,534	6,109,077
Short-term borrowings	42,311	76,803
FHLB and other borrowings	457,998	317,464
Subordinated debt	95,301	148,386
Trust preferred debentures	54,668	57,827
Level 3
Assets
Cash and due from banks	0	0
Federal funds sold	0	0
Loans, net	6,121,026	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
Carrying amount
Assets
Cash and due from banks	143,035	673,297
Federal funds sold	7,286	7,074
Loans, net	6,245,416	5,173,739
Accrued interest receivable	20,313	19,470
Liabilities
Deposits	6,364,652	6,110,648
Short-term borrowings	42,311	76,803
FHLB and other borrowings	460,000	310,171
Subordinated debt	99,772	139,091
Trust preferred debentures	49,975	49,374
Fair value
Assets
Cash and due from banks	143,035	673,297
Federal funds sold	7,286	7,074
Loans, net	6,121,026	5,221,886
Accrued interest receivable	20,313	19,470
Liabilities
Deposits	6,344,534	6,109,077
Short-term borrowings	42,311	76,803
FHLB and other borrowings	457,998	317,464
Subordinated debt	95,301	148,386
Trust preferred debentures	$ 54,668	$ 57,827

TRUST PREFERRED DEBENTURES - Summary of Trust Preferred Debentures (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Mar. 26, 2004
TRUST PREFERRED DEBENTURES
Face amount	$ 100,550	$ 140,550
Trust preferred debentures	49,975	49,374
Trust preferred debentures maturing January 23, 2034 \| Grant Park Trust
TRUST PREFERRED DEBENTURES
Face amount	$ 3,093
Shares Issued	3
Trust preferred debentures	$ 2,410	$ 2,363
Interest rate (as a percent)	7.26%	2.98%
Trust preferred debentures maturing January 23, 2034 \| LIBOR \| Grant Park Trust
TRUST PREFERRED DEBENTURES
Variable interest rate	2.85%
Trust preferred debentures maturing April 23, 2034 \| Midland Trust
TRUST PREFERRED DEBENTURES
Face amount	$ 10,310		$ 10,300
Shares Issued	10
Trust preferred debentures	$ 10,282	$ 10,279
Interest rate (as a percent)	7.07%	2.87%
Trust preferred debentures maturing April 23, 2034 \| LIBOR \| Midland Trust
TRUST PREFERRED DEBENTURES
Variable interest rate	2.75%
Trust Preferred Debentures Maturing June 17, 2034 \| Centrue Bank
TRUST PREFERRED DEBENTURES
Face amount	$ 10,310
Shares Issued	10
Trust preferred debentures	$ 8,358	$ 8,255
Interest rate (as a percent)	7.39%	2.87%
Trust Preferred Debentures Maturing June 17, 2034 \| LIBOR \| Centrue Bank
TRUST PREFERRED DEBENTURES
Variable interest rate	2.65%
Trust preferred debentures maturing December 31, 2036 \| LSHC Trust III
TRUST PREFERRED DEBENTURES
Face amount	$ 20,619
Shares Issued	20
Trust preferred debentures	$ 14,870	$ 14,647
Interest rate (as a percent)	6.52%	1.95%
Trust preferred debentures maturing December 31, 2036 \| LIBOR \| LSHC Trust III
TRUST PREFERRED DEBENTURES
Variable interest rate	1.75%
Trust preferred debentures maturing September 6, 2037 \| LSHC Trust IV
TRUST PREFERRED DEBENTURES
Face amount	$ 20,619
Shares Issued	20
Trust preferred debentures	$ 14,055	$ 13,830
Interest rate (as a percent)	6.20%	1.65%
Trust preferred debentures maturing September 6, 2037 \| LIBOR \| LSHC Trust IV
TRUST PREFERRED DEBENTURES
Variable interest rate	1.47%
Total trust preferred debentures
TRUST PREFERRED DEBENTURES
Face amount	$ 64,951
Trust preferred debentures	$ 49,975	$ 49,374

CONSOLIDATED STATEMENTS OF INCOME—(UNAUDITED) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interest income:
Loans: Taxable	$ 274,617	$ 213,922	$ 217,459
Loans: Tax exempt	2,082	2,470	3,110
Loans held for sale	404	1,115	1,881
Investment securities:
Taxable	15,801	13,898	14,789
Tax exempt	2,746	3,336	3,532
Nonmarketable equity securities	2,198	2,348	2,638
Federal funds sold and cash investments	3,907	728	1,479
Total interest income	301,755	237,817	244,888
Interest expense:
Deposits	36,061	10,957	21,498
Short-term borrowings	104	86	178
Federal Home Loan Bank advances and other borrowings	9,335	8,443	12,033
Subordinated debt	7,495	8,705	9,730
Trust preferred debentures	3,025	1,951	2,313
Total interest expense	56,020	30,142	45,752
Net interest income	245,735	207,675	199,136
Provision for credit losses:
Provision for credit losses on loans	18,797	3,950	43,149
Provision for (recapture of) credit losses on unfunded commitments	1,550	(412)	846
(Recapture of) provision for other credit losses	(221)	(145)	366
Total provision for credit losses	20,126	3,393	44,361
Net interest income after provision for credit losses	225,609	204,282	154,775
Noninterest income:
Wealth management revenue	25,708	26,811	22,802
Commercial FHA revenue	1,663	1,414	6,007
Residential mortgage banking revenue	1,509	5,526	9,812
Service charges on deposit accounts	9,480	8,348	8,603
Interchange revenue	13,879	14,500	12,266
(Loss) gain on sales of investment securities, net	(230)	537	1,721
Gain on termination of hedged interest rate swaps	17,531	2,159	0
Impairment on commercial mortgage servicing rights	(1,263)	(7,532)	(12,337)
Company-owned life insurance	3,584	4,496	3,581
Other income	8,030	13,640	8,794
Total noninterest income	79,891	69,899	61,249
Noninterest expense:
Salaries and employee benefits	90,305	86,883	85,557
Occupancy and equipment	14,842	14,866	17,552
Data processing	24,350	24,595	22,643
Professional	6,907	10,971	7,234
Marketing	3,318	3,239	3,498
Communications	2,382	3,002	4,052
Loan expense	4,586	2,014	2,504
Amortization of intangible assets	5,410	5,855	6,504
Other real estate owned	5,188	1,277	2,155
Loss on mortgage servicing rights held for sale	3,250	222	1,692
Impairment related to facilities optimization	0	0	12,847
FHLB advances prepayment fees	0	8,536	4,872
Other expense	15,124	13,609	12,900
Total noninterest expense	175,662	175,069	184,010
Income before income taxes	129,838	99,112	32,014
Income taxes	30,813	17,795	9,477
Net income	99,025	81,317	22,537
Preferred dividends	3,169	0	0
Net income available to common shareholders	$ 95,856	$ 81,317	$ 22,537
Per common share data:
Basic earnings per common share (in dollars per share)	$ 4.24	$ 3.58	$ 0.95
Diluted earnings per common share (in dollars per share)	$ 4.23	$ 3.57	$ 0.95
Weighted average common shares outstanding (in shares)	22,341,498	22,481,389	23,336,881
Weighted average diluted common shares outstanding (in shares)	22,395,698	22,547,353	23,346,126

FHLB ADVANCES AND OTHER BORROWINGS (Tables)

12 Months Ended

Dec. 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 December 31, 2022 and 2021:


(dollars in thousands)	2022		2021
Midland States Bancorp, Inc.

Series G redeemable preferred stock - 171 shares at $1,000 per share	—		171
Midland States Bank
FHLB advances – putable fixed rate at rates averaging 2.35% and 1.48% at December 31, 2022 and December 31, 2021, respectively – maturing through December 2024	110,000		210,000
FHLB advances –SOFR floater at rates averaging 5.92% and 1.67% at December 31, 2022 and December 31, 2021, respectively – maturing in October 2023	100,000		100,000
FHLB advances – Short term fixed rate at rates averaging 4.31% at December 31, 2022 – maturing in January 2023	250,000		—
Total FHLB advances and other borrowings	$	460,000	$	310,171

Schedule of Required Payments of Federal Home Loan Bank Advances

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


(dollars in thousands)	Amount
Year Ending December 31,
2023	$	390,000
2024	70,000




Total	$	460,000

RETIREMENT PLANS

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

RETIREMENT PLANS

Profit Sharing Plan

We sponsor the Midland States Bank 401(k) Profit Sharing Plan, which provides retirement benefits to substantially all of our employees. There were no employer discretionary profit sharing contributions made to the 401(k) plan in 2022, 2021 and 2020. The 401(k) component of the plan allows participants to defer a portion of their compensation ranging from 1% to 100%. Such deferrals accumulate on a tax deferred basis until the participant withdraws the funds. The Company matches 50% of participant contributions up to 6% of their compensation. Total expense recorded for the Company match was $1.6 million, $1.2 million and $1.7 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Deferred Compensation Arrangements

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

The following table summarizes the activity in the asset and liability balances of the executive officer nonqualified deferred compensation arrangement for the years ended December 31, 2022, 2021, and 2020:


(dollars in thousands)	2022		2021		2020
Beginning balance, trust asset	$	3,714	$	3,657	$	—
Contributions	446		207		3,264
(Loss) gain on trust assets	(474)		359		499
Distributions	(392)		(509)		(106)
Ending balance, trust asset	$	3,294	$	3,714	$	3,657

Beginning balance, deferred compensation liability	$	3,714	$	3,657	$	2,978
Employee deferrals	446		207		350
Expense on deferred compensation liability	(474)		359		506
Distributions	(392)		(509)		(177)
Ending balance, deferred compensation liability	$	3,294	$	3,714	$	3,657

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

The following table summarizes the activity in the liability balance of the director nonqualified deferred compensation arrangement for the years ended December 31, 2022, 2021, and 2020:


(dollars in thousands)	2022		2021		2020
Beginning balance, deferred compensation liability	$	5,372	$	4,560	$	5,007
Deferred compensation	532		606		586
Expense on deferred compensation liability	296		251		270
Distributions	(63)		(45)		(1,303)
Ending balance, deferred compensation liability	$	6,137	$	5,372	$	4,560

Defined Benefit Pension Plan

The Bank participated in the Pentegra Defined Benefit Plan for Financial Institutions, a non-contributory defined benefit pension plan for certain former employees of Heartland Bank who met prescribed eligibility requirements. Benefits under the plan were frozen July 1, 2004.

Effective October 1, 2021, the Bank withdrew from the multiple-employer plan by transferring assets and liabilities to a qualified successor plan under actuarial assumptions and methodology determined appropriate by Pentegra. Assets of

$16.6 million were transferred to the successor plan on November 30, 2021. Transferred liability excludes the previously allocated orphan liability.

The following table details the components of the net periodic benefit cost for the years ended December 31, 2022 and 2021:


(dollars in thousands)	2022		2021
Service cost	$	—	$	—
Interest cost	445		—
Expected return on plan assets	(828)		—
Amortization of transition obligation	14		—
Net periodic benefit cost	$	(369)	$	—

Assumptions used to determine net periodic benefit cost:


Discount rate	2.70	%
Expected long-term return on plan assets	5.50	%
Rate of compensation increase	—	%

Previously, costs for administration, shortfalls in funds to maintain the frozen level of benefit coverage and differences of actuarial assumptions related to the frozen benefits were expensed as incurred.

The following table provides a comparison of obligations to plan assets:


(dollars in thousands)	December 31, 2022		December 31, 2021
Projected benefit obligation	$	13,016	$	16,904
Accumulated benefit obligation	13,016		16,904
Fair value of plan assets	12,765		16,890

The minimum required contribution for 2023 is expected to be zero.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI https://asc.fasb.org/extlink&oid=123450688&loc=d3e4179-114921

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section S99
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (o)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (p)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 70
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI https://asc.fasb.org/topic&trid=2235017

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 60
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=6414203&loc=d3e39689-114964

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (q)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (r)(1)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(iii)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (l)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (r)(2)
-URI https://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

+ Details

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Schedule of Segment Financial Information

Selected business segment financial information for the years ended 2022, 2021, and 2020 were as follows:


(dollars in thousands)	Banking		Wealth Management		Other		Total










Year Ended December 31, 2022
Net interest income (expense)	$	256,226	$	—	$	(10,491)	$	245,735
Provision for credit losses	20,126		—		—		20,126
Noninterest income	54,179		25,708		4		79,891
Noninterest expense	157,680		18,019		(37)		175,662
Income (loss) before income taxes (benefit)	132,599		7,689		(10,450)		129,838
Income taxes (benefit)	35,055		2,136		(6,378)		30,813
Net income (loss)	$	97,544	$	5,553	$	(4,072)	$	99,025
Total assets	$	7,841,966	$	29,332	$	(15,797)	$	7,855,501











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

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

LOANS - Risk Rating (Details) - Consumer Loans And Equipment Finance Loans And Leases	Dec. 31, 2022
Credit Risk State One \| Minimum
Risk category
Consumer loans and equipment finance loans and leases days past due	0 days
Credit Risk State One \| Maximum
Risk category
Consumer loans and equipment finance loans and leases days past due	14 days
Credit Risk State Two \| Minimum
Risk category
Consumer loans and equipment finance loans and leases days past due	15 days
Credit Risk State Two \| Maximum
Risk category
Consumer loans and equipment finance loans and leases days past due	29 days
Credit Risk State Three \| Minimum
Risk category
Consumer loans and equipment finance loans and leases days past due	30 days
Credit Risk State Three \| Maximum
Risk category
Consumer loans and equipment finance loans and leases days past due	59 days
Credit Risk State Four \| Minimum
Risk category
Consumer loans and equipment finance loans and leases days past due	60 days
Credit Risk State Four \| Maximum
Risk category
Consumer loans and equipment finance loans and leases days past due	89 days
Credit Risk State Default \| Minimum
Risk category
Consumer loans and equipment finance loans and leases days past due	90 days

SUBORDINATED DEBT - Subordinated Debt (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Oct. 15, 2022	Dec. 31, 2021
Subordinated Borrowing [Line Items]
Face amount	$ 100,550		$ 140,550
Carrying amount	99,772		139,091
6.25% Subordinated Debt
Subordinated Borrowing [Line Items]
Face amount	0	$ 40,000	40,000
Carrying amount	$ 0		$ 39,626
Fixed interest rate	0.00%	6.25%	6.25%
5.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Face amount	$ 72,750		$ 72,750
Carrying amount	$ 72,300		$ 72,042
Fixed interest rate	5.00%		5.00%
5.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Face amount	$ 27,250		$ 27,250
Carrying amount	$ 26,925		$ 26,877
Fixed interest rate	5.50%		5.50%
6.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Face amount	$ 550		$ 550
Carrying amount	$ 547		$ 546
Fixed interest rate	6.50%		6.50%
LIBOR \| 6.25% Subordinated Debt
Subordinated Borrowing [Line Items]
Variable interest rate	4.23%
Three month SOFR \| 5.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Variable interest rate	3.61%
Three month SOFR \| 5.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Variable interest rate	4.05%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($)		12 Months Ended
	Jan. 01, 2020	Dec. 31, 2022	Dec. 31, 2021
Accrued interest receivable		$ 17,000,000	$ 15,900,000
Increase in allowance for credit losses	$ 12,800,000
Increase in liabilities for unfunded commitment	$ 300,000
Threshold amount for non accrual loans		500,000
Threshold amount for accruing loans past due more than 90 days		100,000
Liabilities for unfunded commitments		$ 1,900,000	$ 2,400,000
Minimum
Percentage cost of related equipment to unguaranteed residual values		3.00%
Other intangible assets amortized over a period		1 year
Maximum
Percentage cost of related equipment to unguaranteed residual values		15.00%
Other intangible assets amortized over a period		20 years
Premises \| Minimum
Estimated useful lives		10 years
Premises \| Maximum
Estimated useful lives		40 years
Furniture and equipment \| Minimum
Estimated useful lives		3 years
Furniture and equipment \| Maximum
Estimated useful lives		10 years

DEPOSITS - Summary of Classification of Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Classification of deposits
Noninterest-bearing demand	$ 1,935,773	$ 2,245,701
Interest-bearing:
Checking	1,920,458	1,663,021
Money market	1,184,101	869,067
Savings	661,932	679,115
Time	662,388	653,744
Total deposits	$ 6,364,652	$ 6,110,648

PREMISES, EQUIPMENT AND LEASES - Projected Minimum Rental Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
2023	$ 1,975
2024	1,879
2025	975
2026	843
2027	740
Thereafter	3,556
Total future minimum lease payments	9,968
Less imputed interest	(1,023)
Operating lease liabilities	$ 8,945	$ 10,700

INVESTMENT SECURITIES - Classified (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Investment securities available for sale
Amortized cost	$ 873,023	$ 904,695
Gross unrealized gains	601	11,505
Gross unrealized losses	105,390	9,376
Allowance for credit losses	0	221	$ 366
Fair value	768,234	906,603
U.S. Treasury securities
Investment securities available for sale
Amortized cost	86,313	65,347
Gross unrealized gains	113	0
Gross unrealized losses	5,196	430
Allowance for credit losses	0	0
Fair value	81,230	64,917
U.S. government sponsored entities and U.S. agency securities
Investment securities available for sale
Amortized cost	41,775	34,569
Gross unrealized gains	71	79
Gross unrealized losses	4,337	831
Allowance for credit losses	0	0
Fair value	37,509	33,817
Mortgage-backed securities - agency
Investment securities available for sale
Amortized cost	522,028	444,484
Gross unrealized gains	268	2,687
Gross unrealized losses	74,146	6,901
Allowance for credit losses	0	0
Fair value	448,150	440,270
Mortgage-backed securities - non-agency
Investment securities available for sale
Amortized cost	24,922	29,037
Gross unrealized gains	0	50
Gross unrealized losses	4,168	381
Allowance for credit losses	0	0
Fair value	20,754	28,706
State and municipal securities
Investment securities available for sale
Amortized cost	102,719	137,904
Gross unrealized gains	149	5,561
Gross unrealized losses	8,232	366
Allowance for credit losses	0	0	29
Fair value	94,636	143,099
Corporate securities
Investment securities available for sale
Amortized cost	95,266	193,354
Gross unrealized gains	0	3,128
Gross unrealized losses	9,311	467
Allowance for credit losses	0	221	$ 337
Fair value	$ 85,955	$ 195,794

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash payments for:
Interest paid on deposits and borrowed funds	$ 55,069	$ 31,735	$ 47,712
Income tax paid (net of refunds)	36,514	7,759	2,977
Supplemental disclosures of noncash investing and financing activities:
Transfer of loans to loans held for sale	103,357	123,117	542,060
Transfer of loans to other real estate owned	517	805	16,736
Transfer of premises and equipment, net to assets held for sale	0	23	11,344
Transfer of loan servicing rights, at lower of cost or market to loan servicing rights held for sale	$ 23,995	$ 705	$ 0

SHORT-TERM BORROWINGS (Tables)

12 Months Ended

Dec. 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 December 31, 2022 and 2021:


	Repurchase agreements
(dollars in thousands)	2022			2021
Outstanding at period-end	$	42,311		$	76,803
Average amount outstanding	58,688			68,986
Maximum amount outstanding at any month end	76,807			77,497
Weighted average interest rate:
During period	0.18		%	0.12		%
End of period	0.26		%	0.13		%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Supplemental Cash Flows

The following table summarizes supplemental cash flow information:


	Years Ended December 31,
(dollars in thousands)	2022		2021		2020
Supplemental disclosures of cash flow information:
Cash payments for:
Interest paid on deposits and borrowed funds	$	55,069	$	31,735	$	47,712
Income tax paid (net of refunds)	36,514		7,759		2,977
Supplemental disclosures of noncash investing and financing activities:
Transfer of loans to loans held for sale	103,357		123,117		542,060
Transfer of loans to other real estate owned	517		805		16,736
Transfer of premises and equipment, net to assets held for sale	—		23		11,344
Transfer of loan servicing rights, at lower of cost or market to loan servicing rights held for sale	23,995		705		—

Summary of Loans

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


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

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


(dollars in thousands)	December 31, 2022		December 31, 2021
Commercial:
Commercial	$	786,877	$	770,670
Commercial other	727,697		679,518
Commercial real estate:
Commercial real estate non-owner occupied	1,591,399		1,105,333
Commercial real estate owner occupied	496,786		469,658
Multi-family	277,889		171,875
Farmland	67,085		69,962
Construction and land development	320,882		193,749
Total commercial loans	4,268,615		3,460,765
Residential real estate:
Residential first lien	304,243		274,412
Other residential	61,851		63,739
Consumer:
Consumer	105,880		106,008
Consumer other	1,074,134		896,597
Lease financing	491,744		423,280
Total loans	$	6,306,467	$	5,224,801

PREMISES, EQUIPMENT AND LEASES

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

PREMISES, EQUIPMENT AND LEASES

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


(dollars in thousands)	2022		2021
Land	$	16,004	$	15,696
Buildings and improvements	71,837		67,143
Furniture and equipment	34,081		33,545
Lease right-of-use assets	7,001		8,428
Total	128,923		124,812
Accumulated depreciation	(50,630)		(45,592)
Premises and equipment, net	$	78,293	$	79,220

Depreciation expense for the years ended December 31, 2022, 2021 and 2020 was $4.8 million, $5.5 million, and $6.9 million, respectively.

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

The Company has entered into operating leases, primarily for banking offices and operating facilities, which have remaining lease terms of 1 month to 10 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. The Company had operating lease right-of-use assets of $7.0 million and $8.4 million as of December 31, 2022 and 2021, respectively, included in other assets on our consolidated balance sheets. The operating lease liabilities of the Company were $8.9 million and $10.7

million as of December 31, 2022 and 2021, respectively, and are included in accrued interest payable and other liabilities on our consolidated balance sheets.

Information related to operating leases for the years ended December 31, 2022 and 2021 was as follows:


	Years Ended December 31,
(dollars in thousands)		2022			2021
Operating lease cost		$	2,096		$	2,080
Operating cash flows from leases		2,507			2,566
Right-of-use assets obtained in exchange for lease obligations		502			1,118
Right-of-use assets derecognized due to terminations or impairment		(123)			(210)
Weighted average remaining lease term		7.2 years			7.6 years
Weighted average discount rate		2.89		%	2.85		%

Net rent expense under operating leases, included in occupancy and equipment expense, was $1.5 million, $1.4 million and $2.3 million for the years ended December 31, 2022, 2021 and 2020, respectively.

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


(dollars in thousands)	Amount
Year ending December 31:
2023	$	1,975
2024	1,879
2025	975
2026	843
2027	740
Thereafter	3,556
Total future minimum lease payments	9,968
Less imputed interest	(1,023)
Total operating lease liabilities	$	8,945

ACQUISITIONS - Assets Acquired and Liabilities Assumed (Details) - FNBC Bank & Trust $ in Thousands	Jun. 17, 2022 USD ($)
Business Acquisition
Cash and cash equivalents	$ 60,275
Loans	16,632
Premises and equipment, net	950
Accrued interest receivable	36
Intangible assets	1,901
Total assets acquired	79,794
Deposits	79,794
Total liabilities assumed	79,794
Core deposit intangibles
Business Acquisition
Intangible assets	$ 1,901
Estimated useful life	10 years

PARENT COMPANY ONLY FINANCIAL INFORMATION - Narrative (Details) - Midland States Bank $ in Millions	12 Months Ended
	Dec. 31, 2022 USD ($)
Related Party Transaction [Line Items]
Fixed interest rate	4.51%
Proceeds from borrowings	$ 40.0

LOAN SERVICING RIGHTS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Servicing Assets at Fair Value [Line Items]
Carrying Value	$ 21,950	$ 21,950	$ 28,865
Loss on mortgage servicing rights held for sale		3,250	$ 222	$ 1,692
Prepayment rate			8.24%
Discount rate			11.87%
Commercial FHA
Servicing Assets at Fair Value [Line Items]
Servicing rights transferred to held for sale		(23,995)	$ 0	$ 1,128
Carrying Value	0	0	27,386
Commercial FHA held for sale
Servicing Assets at Fair Value [Line Items]
Carrying Value	20,745	$ 20,745	$ 0
Loss on mortgage servicing rights held for sale	$ 3,300

FHLB ADVANCES AND OTHER BORROWINGS - Summary of FHLB Advances (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 460,000	$ 310,171
Preferred stock, shares issued (in shares)	115,000
Preferred stock, par value (in dollars per share)	$ 2.00
FHLB advances, collateral for mortgage and home equity line of credit loans	$ 2,900,000	2,100,000
Midland States Bancorp, Inc. \| Series G Preferred Stock
FHLB ADVANCES AND OTHER BORROWINGS
Long term debt	$ 0	$ 171
Preferred stock, shares issued (in shares)	171	171
Preferred stock, par value (in dollars per share)	$ 1,000	$ 1,000
Midland States Bank \| Putable fixed rate maturing through December 2024
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 110,000	$ 210,000
Interest rate	2.35%	1.48%
Midland States Bank \| Floater rate maturing October 2023
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 100,000	$ 100,000
Midland States Bank \| Floater rate maturing October 2023 \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
FHLB ADVANCES AND OTHER BORROWINGS
Interest rate	5.92%	1.67%
Midland States Bank \| Short term fixed rate maturing through October 2022
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 250,000	$ 0
Interest rate	4.31%	4.31%

RETIREMENT PLANS - Plan Assets and Liabilities (Details) - Deferred compensation arrangement - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Beginning balance, trust asset	$ 3,714	$ 3,657	$ 0
Contributions	446	207	3,264
(Loss) gain on trust assets	(474)	359	499
Distributions	(392)	(509)	(106)
Ending balance, trust asset	3,294	3,714	3,657
Defined Benefit Plan, Deferred Compensation Liability [Roll Forward]
Beginning balance, deferred compensation liability	3,714	3,657	2,978
Employee deferrals	446	207	350
Expense on deferred compensation liability	(474)	359	506
Distributions	(392)	(509)	(177)
Ending balance, deferred compensation liability	3,294	3,714	3,657
Deferred Compensation Arrangement with Individual, Recorded Liability [Roll Forward]
Beginning balance, deferred compensation liability	5,372	4,560	5,007
Deferred compensation	532	606	586
Expense on deferred compensation liability	296	251	270
Distributions	(63)	(45)	(1,303)
Ending balance, deferred compensation liability	$ 6,137	$ 5,372	$ 4,560

LOANS - Impaired Loans with Interest Recognized (Details) - USD ($)	3 Months Ended		12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interest income :
Interest income recognized on nonaccrual loans	$ 0	$ 0	$ 0	$ 0
Additional interest income that would have been recorded had they been current			$ 2,800,000	$ 2,700,000	$ 3,300,000

INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets:
Allowance for credit losses on loans	$ 16,484	$ 14,042
Deferred compensation	2,238	2,177
Loans	1,379	1,835
Tax credits	861	1,067
Unrealized loss on securities	28,404	0
Unrealized loss on derivatives	2,700	0
Net operating losses	8,922	10,113
Fair value adjustment on investments	287	879
Operating lease liabilities	2,415	2,946
Other, net	4,550	3,519
Deferred tax assets	68,240	36,578
Valuation allowance	(176)	(118)
Deferred tax assets, net of valuation allowance	68,064	36,460
Liabilities:
Premises and equipment	573	472
Unrealized gain on securities	0	569
Unrealized gain on derivatives	0	1,401
Mortgage servicing rights	4,217	5,958
Fair value adjustment on trust preferred debentures	4,025	4,264
Deferred loan costs, net of fees	3,006	3,444
Intangible assets	4,458	5,651
Software development costs	842	1,446
Leased equipment	24,346	22,297
Operating lease right-of-use assets	1,890	2,318
Other, net	2,222	2,218
Deferred tax liabilities	45,579	50,038
Deferred tax assets (liabilities), net	$ 22,485
Deferred tax assets (liabilities), net		$ 13,578

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Assets
Other assets	$ 174,919	$ 130,907
Total assets	7,855,501	7,443,805	$ 6,868,540
Liabilities:
Subordinated debt	99,772	139,091
Trust preferred debentures	49,975	49,374
Total liabilities	7,096,927	6,779,968
Shareholders’ equity	758,574	663,837	$ 621,391	$ 661,911
Total liabilities and shareholders’ equity	7,855,501	7,443,805
Midland States Bancorp, Inc.
Assets
Cash	2,721	37,876
Note receivable due from bank subsidiary	40,000	0
Other assets	8,468	8,094
Total assets	911,318	855,113
Liabilities:
Subordinated debt	99,772	139,091
Trust preferred debentures	49,975	49,374
Other borrowings	0	171
Accrued interest payable and other liabilities	2,997	2,640
Total liabilities	152,744	191,276
Shareholders’ equity	758,574	663,837
Total liabilities and shareholders’ equity	911,318	855,113
Midland States Bancorp, Inc. \| Banking Subsidiaries
Assets
Investment in subsidiaries	859,355	808,283
Midland States Bancorp, Inc. \| Non-banking Subsidiaries
Assets
Investment in subsidiaries	$ 774	$ 860

GOODWILL AND INTANGIBLE ASSETS - Expected Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 4,758
2024	4,008
2025	3,223
2026	2,672
2027	2,101
Thereafter	4,104
Total	$ 20,866	$ 24,374

FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 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.

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

Investment securities. The fair value of investment securities available for sale are determined by quoted market prices, if available (Level 1). For investment securities available for sale where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For investment securities available for sale where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Securities classified as Level 3 are not actively traded, and as a result, fair value is determined utilizing third-party valuation services through consensus pricing. There were no transfers between Levels 1, 2 or 3 during the years ended December 31, 2022 or 2021 for assets measured at fair value on a recurring basis. The fair value of equity securities is determined using quoted prices or market prices for similar securities (Level 2).

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

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

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

Mortgage servicing rights held for sale. Mortgage servicing rights held for sale consist of commercial FHA mortgage servicing rights that management has committed to a plan to sell and has the ability to sell them to a buyer in their present condition. Mortgage servicing rights held for sale are carried at the lower of their carrying value or fair value less estimated costs to sell (Level 2).

Nonperforming loans. Nonperforming loans are measured and recorded at fair value on a non-recurring basis. All of our nonaccrual loans and restructured loans are considered nonperforming and are reviewed individually for the amount of impairment, if any. Most of our loans are collateral dependent and, accordingly, we measure nonperforming loans based on the estimated fair value of such collateral. In cases where the Company has an agreed upon selling price for the collateral, the fair value is set at the selling price (Level 1). The fair value of each loan’s collateral is generally based on estimated market prices from an independently prepared appraisal, which is then adjusted for the cost related to liquidating such collateral (Level 2). When adjustments are made to an appraised value to reflect various factors such as the age of the appraisal or known changes in the market or the collateral, such valuation inputs are considered unobservable (Level 3). The nonperforming loans categorized as Level 3 also include unsecured loans and other secured loans whose fair values are based significantly on unobservable inputs such as the strength of a guarantor, cash flows discounted at the effective loan rate, and management’s judgment.

Other Real Estate Owned. OREO is initially recorded at fair value at the date of foreclosure less estimated costs of disposal, which establishes a new cost basis. After foreclosure, OREO is held for sale and is carried at the lower of cost or fair value less estimated costs of disposal. Fair value for OREO is based on an appraisal performed upon foreclosure. Property is evaluated regularly to ensure the recorded amount is supported by its fair value less estimated costs to dispose. After the initial foreclosure appraisal, fair value is generally determined by an annual appraisal unless known events warrant adjustments to the recorded value.

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

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


	December 31, 2022
(dollars in thousands)	Carrying amount		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. Treasury securities	$	81,230	$	81,230	$	—	$	—
U.S. government sponsored entities and U.S. agency securities	37,509		—		37,509		—
Mortgage-backed securities - agency	448,150		—		448,150		—
Mortgage-backed securities - non-agency	20,754		—		20,754		—
State and municipal securities	94,636		—		94,636		—
Corporate securities	85,955		—		85,955		—
Equity securities	8,626		8,626		—		—
Loans held for sale	1,286		—		1,286		—
Derivative assets	481		—		481		—

Total	$	778,627	$	89,856	$	688,771	$	—
Liabilities
Derivative liabilities	$	10,446	$	—	$	10,446	$	—

Total	$	10,446	$	—	$	10,446	$	—

Assets measured at fair value on a non-recurring basis:
Loan servicing rights	$	1,205	$	—	$	—	$	1,205
Commercial FHA loan servicing rights held for sale	20,745		—		20,745		—
Nonperforming loans	49,423		5,478		34,406		9,539
Other real estate owned	6,729		—		6,729		—
Assets held for sale	356		—		356		—


	December 31, 2021
(dollars in thousands)	Carrying amount		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. Treasury securities	$	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 years ended December 31, 2022 and 2021:


	Years Ended December 31,
(dollars in thousands)		2022		2021
Balance, beginning of period		$	935	$	959
Transferred to level 2		(935)		—
Total realized in earnings (1)		6		14
Total unrealized in other comprehensive income (2)		—		(24)
Net settlements (principal and interest)		(6)		(14)
Balance, end of period		$	—	$	935

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

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

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

(dollars in thousands)

Fair value

Valuation
technique

Unobservable
input / assumptions

Range (weighted average)(1)

December 31, 2021

Corporate securities

935

Consensus pricing

Net market price

0.00% - 7.00% (4.50)%

(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.

The following table presents losses recognized on assets measured on a nonrecurring basis for the years ended December 31, 2022, 2021 and 2020:


	Years Ended December 31,
(dollars in thousands)		2022		2021		2020
Commercial mortgage servicing rights		$	1,263	$	7,532	$	12,337
Loan servicing rights held for sale		3,250		222		1,692
Nonperforming loans		8,892		14,468		24,611
Other real estate owned		4,276		454		1,390
Assets held for sale		—		—		10,404
Total losses on assets measured on a nonrecurring basis		$	17,681	$	22,676	$	50,434

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 December 31, 2022 and December 31, 2021:

(dollars in thousands)

Fair value

Valuation
technique

Unobservable
input / assumptions

Range (weighted average)(1)

December 31, 2022

Loan servicing rights:

SBA servicing rights

876

Discounted cash flow

Prepayment speed

14.49% - 15.44% (15.00%)

Discount rate

No range (13.00%)

Residential servicing rights

2,770

Discounted cash flow

Prepayment speed

7.56% -26.28% (7.92%)

Discount rate

9.00% - 11.50% (10.13%)

December 31, 2021

Loan servicing rights:

Commercial MSR

28,368

Discounted cash flow

Prepayment speed

8.00% - 18.00% (8.24%)

Discount rate

10.00% - 27.00% (11.87%)

SBA servicing rights

898

Discounted cash flow

Prepayment speed

12.27% - 14.14% (13.88%)

Discount rate

10.00% - 12.00% (11.00%)

Residential servicing rights

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 December 31, 2022 and December 31, 2021:


	December 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	$	—	$	—	$	—	$	19,230	$	—	$	19,230
Residential loans held for sale	1,286		42		1,244		12,815		584		12,231

Total loans held for sale	$	1,286	$	42	$	1,244	$	32,045	$	584	$	31,461

The following table presents the amount of losses from fair value changes included in income before income taxes for financial assets carried at fair value for the years ended December 31, 2022, 2021 and 2020:


	Years Ended December 31,
(dollars in thousands)		2022		2021		2020
Commercial loans held for sale		$	—	$	(67)	$	(139)
Residential loans held for sale		(425)		(148)		318
Total loans held for sale		$	(425)	$	(215)	$	179

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


	December 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	$	143,035	$	143,035	$	143,035	$	—	$	—
Federal funds sold	7,286		7,286		7,286		—		—

Loans, net	6,245,416		6,121,026		—		—		6,121,026
Accrued interest receivable	20,313		20,313		—		20,313		—

Liabilities
Deposits	$	6,364,652	$	6,344,534	$	—	$	6,344,534	$	—
Short-term borrowings	42,311		42,311		—		42,311		—
FHLB and other borrowings	460,000		457,998		—		457,998		—
Subordinated debt	99,772		95,301		—		95,301		—
Trust preferred debentures	49,975		54,668		—		54,668		—


	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		—

The methods utilized to measure fair value of financial instruments at December 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

LOAN SERVICING RIGHTS (Tables)

12 Months Ended

Dec. 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 December 31, 2022 and 2021 is as follows:


(dollars in thousands)	2022				2021
	Serviced Loans		Carrying Value		Serviced Loans		Carrying Value
Commercial FHA	$	—	$	—	$	2,650,531	$	27,386
SBA	46,081		656		50,043		774
Residential	255,298		549		302,618		705
Commercial FHA held for sale	2,255,617		20,745		—		—
Total	$	2,556,996	$	21,950	$	3,003,192	$	28,865

Changes in our commercial FHA loan servicing rights for the years ended 2022, 2021, and 2020 are summarized as follows:


	Years Ended December 31,
(dollars in thousands)		2022		2021		2020
Loan servicing rights:
Balance, beginning of period		$	27,386	$	38,322	$	57,637

Servicing rights transferred to held for sale		(23,995)		—		1,128
Amortization		(1,907)		(2,965)		(3,162)
Refinancing fee received from third party		(221)		(439)		—
Permanent impairment		(1,263)		(7,532)		(17,281)
Balance, end of period		$	—	$	27,386	$	38,322






Fair value:
At beginning of period		$	28,368	$	38,322	$	52,693
At end of period		—		28,368		38,322

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured and Recorded at Fair Value


	December 31, 2022
(dollars in thousands)	Carrying amount		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. Treasury securities	$	81,230	$	81,230	$	—	$	—
U.S. government sponsored entities and U.S. agency securities	37,509		—		37,509		—
Mortgage-backed securities - agency	448,150		—		448,150		—
Mortgage-backed securities - non-agency	20,754		—		20,754		—
State and municipal securities	94,636		—		94,636		—
Corporate securities	85,955		—		85,955		—
Equity securities	8,626		8,626		—		—
Loans held for sale	1,286		—		1,286		—
Derivative assets	481		—		481		—

Total	$	778,627	$	89,856	$	688,771	$	—
Liabilities
Derivative liabilities	$	10,446	$	—	$	10,446	$	—

Total	$	10,446	$	—	$	10,446	$	—

Assets measured at fair value on a non-recurring basis:
Loan servicing rights	$	1,205	$	—	$	—	$	1,205
Commercial FHA loan servicing rights held for sale	20,745		—		20,745		—
Nonperforming loans	49,423		5,478		34,406		9,539
Other real estate owned	6,729		—		6,729		—
Assets held for sale	356		—		356		—


	December 31, 2021
(dollars in thousands)	Carrying amount		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. Treasury securities	$	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)


	Years Ended December 31,
(dollars in thousands)		2022		2021
Balance, beginning of period		$	935	$	959
Transferred to level 2		(935)		—
Total realized in earnings (1)		6		14
Total unrealized in other comprehensive income (2)		—		(24)
Net settlements (principal and interest)		(6)		(14)
Balance, end of period		$	—	$	935

(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)

December 31, 2021

Corporate securities

935

Consensus pricing

Net market price

0.00% - 7.00% (4.50)%

(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 years ended December 31, 2022, 2021 and 2020:


	Years Ended December 31,
(dollars in thousands)		2022		2021		2020
Commercial mortgage servicing rights		$	1,263	$	7,532	$	12,337
Loan servicing rights held for sale		3,250		222		1,692
Nonperforming loans		8,892		14,468		24,611
Other real estate owned		4,276		454		1,390
Assets held for sale		—		—		10,404
Total losses on assets measured on a nonrecurring basis		$	17,681	$	22,676	$	50,434

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)

December 31, 2022

Loan servicing rights:

SBA servicing rights

876

Discounted cash flow

Prepayment speed

14.49% - 15.44% (15.00%)

Discount rate

No range (13.00%)

Residential servicing rights

2,770

Discounted cash flow

Prepayment speed

7.56% -26.28% (7.92%)

Discount rate

9.00% - 11.50% (10.13%)

December 31, 2021

Loan servicing rights:

Commercial MSR

28,368

Discounted cash flow

Prepayment speed

8.00% - 18.00% (8.24%)

Discount rate

10.00% - 27.00% (11.87%)

SBA servicing rights

898

Discounted cash flow

Prepayment speed

12.27% - 14.14% (13.88%)

Discount rate

10.00% - 12.00% (11.00%)

Residential servicing rights

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


	December 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	$	—	$	—	$	—	$	19,230	$	—	$	19,230
Residential loans held for sale	1,286		42		1,244		12,815		584		12,231

Total loans held for sale	$	1,286	$	42	$	1,244	$	32,045	$	584	$	31,461


	Years Ended December 31,
(dollars in thousands)		2022		2021		2020
Commercial loans held for sale		$	—	$	(67)	$	(139)
Residential loans held for sale		(425)		(148)		318
Total loans held for sale		$	(425)	$	(215)	$	179

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


	December 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	$	143,035	$	143,035	$	143,035	$	—	$	—
Federal funds sold	7,286		7,286		7,286		—		—

Loans, net	6,245,416		6,121,026		—		—		6,121,026
Accrued interest receivable	20,313		20,313		—		20,313		—

Liabilities
Deposits	$	6,364,652	$	6,344,534	$	—	$	6,344,534	$	—
Short-term borrowings	42,311		42,311		—		42,311		—
FHLB and other borrowings	460,000		457,998		—		457,998		—
Subordinated debt	99,772		95,301		—		95,301		—
Trust preferred debentures	49,975		54,668		—		54,668		—


	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		—

- Definition

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

+ References + Details

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY—(UNAUDITED) (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Stockholders' Equity [Abstract]
Common dividend declared, per share (in dollars per share)	$ 1.16	$ 1.12	$ 1.07

DERIVATIVE INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative disclosures
Gain on termination of hedged interest rate swaps		$ 17,531	$ 2,159	$ 0
Future Starting Receive Fixed, Pay Variable Interest Rate Swaps \| Cash Flow Hedge
Derivative disclosures
Gain on termination of hedged interest rate swaps	$ 17,500
Interest rate swap contracts
Derivative disclosures
Notional amount of interest rate swaps	7,400	7,400	7,900
Interest rate swap contracts \| Other liabilities
Derivative disclosures
Fair value of offsetting counterparty derivative instruments	$ 400	400	400
Commercial FHA
Derivative disclosures
Gain on termination of hedged interest rate swaps		$ (400)	$ (1,500)	$ (1,400)

FHLB ADVANCES AND OTHER BORROWINGS - Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract]
2023	$ 390,000
2024	70,000
Total	$ 460,000	$ 310,171

LOANS - Non-accrual (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Impaired loans (excluding PCI loans) by portfolio
Threshold amount for non accrual loans	$ 500,000
Nonaccrual
Nonaccrual with allowance	19,445,000	$ 19,237,000
Nonaccrual with no allowance	22,531,000	16,326,000
Total nonaccrual	41,976,000	35,563,000
Commercial Loan Portfolio
Nonaccrual
Nonaccrual with allowance	13,923,000	13,665,000
Nonaccrual with no allowance	21,959,000	15,494,000
Total nonaccrual	35,882,000	29,159,000
Commercial Loan Portfolio \| Commercial
Nonaccrual
Nonaccrual with allowance	1,910,000	4,681,000
Nonaccrual with no allowance	1,111,000	2,275,000
Total nonaccrual	3,021,000	6,956,000
Commercial Loan Portfolio \| Commercial other
Nonaccrual
Nonaccrual with allowance	3,169,000	4,467,000
Nonaccrual with no allowance	0	0
Total nonaccrual	3,169,000	4,467,000
Commercial Loan Portfolio \| Commercial real estate non-owner occupied
Nonaccrual
Nonaccrual with allowance	1,345,000	1,914,000
Nonaccrual with no allowance	11,899,000	9,912,000
Total nonaccrual	13,244,000	11,826,000
Commercial Loan Portfolio \| Commercial real estate owner occupied
Nonaccrual
Nonaccrual with allowance	7,118,000	2,164,000
Nonaccrual with no allowance	0	1,340,000
Total nonaccrual	7,118,000	3,504,000
Commercial Loan Portfolio \| Multi-family
Nonaccrual
Nonaccrual with allowance	154,000	201,000
Nonaccrual with no allowance	8,949,000	1,967,000
Total nonaccrual	9,103,000	2,168,000
Commercial Loan Portfolio \| Farmland
Nonaccrual
Nonaccrual with allowance	25,000	155,000
Nonaccrual with no allowance	0	0
Total nonaccrual	25,000	155,000
Commercial Loan Portfolio \| Construction and land development
Nonaccrual
Nonaccrual with allowance	202,000	83,000
Nonaccrual with no allowance	0	0
Total nonaccrual	202,000	83,000
Residential Portfolio Segment \| Residential first lien
Nonaccrual
Nonaccrual with allowance	2,925,000	3,116,000
Nonaccrual with no allowance	572,000	832,000
Total nonaccrual	3,497,000	3,948,000
Residential Portfolio Segment \| Other residential
Nonaccrual
Nonaccrual with allowance	871,000	836,000
Nonaccrual with no allowance	0	0
Total nonaccrual	871,000	836,000
Consumer \| Consumer
Nonaccrual
Nonaccrual with allowance	120,000	110,000
Nonaccrual with no allowance	0	0
Total nonaccrual	120,000	110,000
Lease financing \| Lease financing
Nonaccrual
Nonaccrual with allowance	1,606,000	1,510,000
Nonaccrual with no allowance	0	0
Total nonaccrual	$ 1,606,000	$ 1,510,000

INCOME TAXES - Narrative (Details) - USD ($)	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Settlement of prior tax issue		$ 6,800,000
Accumulation of prior year's earnings representing tax bad debt deductions	$ 3,100,000	3,100,000
Operating Loss Carryforwards	8,922,000	10,113,000
Unrecognized tax benefits	0	0
Interest or penalties relative to unrecognized tax benefits	0	0
Valuation allowance	176,000	$ 118,000
Addition to valuation allowance	100,000
Federal
Operating Loss Carryforwards	37,500,000
State
Tax credit carryforward	1,100,000
State \| Illinois
Post-apportioned operating loss carryforward	13,900,000
State \| Missouri
Pre-apportioned operating loss carryforward	$ 37,500,000

EARNINGS PER COMMON SHARE - Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Net income	$ 99,025	$ 81,317	$ 22,537
Preferred dividends declared	(3,169)	0	0
Net income available to common shareholders	95,856	81,317	22,537
Common shareholder dividends	(25,628)	(24,912)	(24,699)
Unvested restricted stock award dividends	(295)	(260)	(259)
Undistributed earnings to unvested restricted stock awards	(809)	(564)	0
Undistributed earnings to common shareholders	69,124	55,581	(2,421)
Basic
Distributed earnings to common shareholders	25,628	24,912	24,699
Undistributed earnings to common shareholders	69,124	55,581	(2,421)
Total common shareholders earnings, basic	94,752	80,493	22,278
Diluted
Distributed earnings to common shareholders	25,628	24,912	24,699
Undistributed earnings to common shareholders	69,124	55,581	(2,421)
Total common shareholders earnings, basic	94,752	80,493	22,278
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	2	2	0
Total common shareholders earnings, diluted	$ 94,754	$ 80,495	$ 22,278
Weighted average common shares outstanding, basic (in shares)	22,341,498	22,481,389	23,336,881
Options (in shares)	54,200	65,964	9,245
Weighted average common shares outstanding, diluted (in shares)	22,395,698	22,547,353	23,346,126
Basic earnings per common share (in dollars per share)	$ 4.24	$ 3.58	$ 0.95
Diluted earnings per common share (in dollars per share)	$ 4.23	$ 3.57	$ 0.95

INCOME TAXES - Components of Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Federal:
Current	$ 22,792	$ 10,044	$ 10,924
Deferred	64	7,926	(3,852)
State:
Current	11,101	144	1,271
Deferred	(3,144)	(319)	1,134
Total income tax expense	$ 30,813	$ 17,795	$ 9,477

- Definition

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

+ References + Details

CAPITAL REQUIREMENTS

12 Months Ended

Dec. 31, 2022

Capital Requirements [Abstract]

CAPITAL REQUIREMENTS

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet regulatory capital requirements may result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for “prompt corrective action”, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting policies. Our capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. The Bank is also restricted by Illinois law and regulations of the Illinois Department of Financial and Professional Regulation and the FDIC as to the maximum amount of dividends the Bank can pay the Company. As a practical matter, the Bank restricts dividends to a lesser amount because of the need to maintain an adequate capital structure.

At December 31, 2022, the Company and the Bank exceeded the regulatory minimums and the Bank met the regulatory definition of "well-capitalized" based on the most recent regulatory notification. There have been no conditions or events since that notification that management believes have changed the Bank's category.

At December 31, 2022 and 2021, the Company’s and the Bank’s actual and required capital ratios were as follows:


	Actual				Fully Phased-In Regulatory Guidelines Minimum				Required to be Well Capitalized Under Prompt Corrective Action Requirements
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2022
Total risk-based capital ratio
Midland States Bancorp, Inc.	$	891,320	12.38	%	$	755,859	10.50	%	N/A		N/A
Midland States Bank	827,689		11.51		755,316		10.50		$	719,349	10.00%
Tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	734,754		10.21		611,886		8.50		N/A		N/A
Midland States Bank	770,566		10.71		611,447		8.50		575,479		8.00
Common equity tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	559,255		7.77		503,906		7.00		N/A		N/A
Midland States Bank	770,566		10.71		503,544		7.00		467,577		6.50
Tier 1 leverage ratio
Midland States Bancorp, Inc.	734,754		9.43		311,715		4.00		N/A		N/A
Midland States Bank	770,566		9.90		311,299		4.00		389,123		5.00

December 31, 2021
Total risk-based capital ratio
Midland States Bancorp, Inc.	$	732,177	12.19	%	$	630,482	10.50	%	N/A		N/A
Midland States Bank	672,500		11.21		629,911		10.50		$	599,915	10.00%
Tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	550,195		9.16		510,390		8.50		N/A		N/A
Midland States Bank	629,389		10.49		509,928		8.50		479,932		8.00
Common equity tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	485,244		8.08		420,321		7.00		N/A		N/A
Midland States Bank	629,389		10.49		419,940		7.00		389,945		6.50
Tier 1 leverage ratio
Midland States Bancorp, Inc.	550,195		7.75		283,941		4.00		N/A		N/A
Midland States Bank	629,389		8.89		283,324		4.00		354,156		5.00

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

- Definition

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

+ References + Details

PREMISES, EQUIPMENT AND LEASES - Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Lease right-of-use assets	$ 7,001	$ 8,428
Total	128,923	124,812
Accumulated depreciation	(50,630)	(45,592)
Premises and equipment, net	78,293	79,220
Land
Property, Plant and Equipment [Line Items]
Premises and equipment gross	16,004	15,696
Buildings and improvements
Property, Plant and Equipment [Line Items]
Premises and equipment gross	71,837	67,143
Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 34,081	$ 33,545

RETIREMENT PLANS (Tables)

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

Schedule of Deferred Compensation Arrangement


(dollars in thousands)	2022		2021		2020
Beginning balance, trust asset	$	3,714	$	3,657	$	—
Contributions	446		207		3,264
(Loss) gain on trust assets	(474)		359		499
Distributions	(392)		(509)		(106)
Ending balance, trust asset	$	3,294	$	3,714	$	3,657

Beginning balance, deferred compensation liability	$	3,714	$	3,657	$	2,978
Employee deferrals	446		207		350
Expense on deferred compensation liability	(474)		359		506
Distributions	(392)		(509)		(177)
Ending balance, deferred compensation liability	$	3,294	$	3,714	$	3,657

The following table summarizes the activity in the liability balance of the director nonqualified deferred compensation arrangement for the years ended December 31, 2022, 2021, and 2020:


(dollars in thousands)	2022		2021		2020
Beginning balance, deferred compensation liability	$	5,372	$	4,560	$	5,007
Deferred compensation	532		606		586
Expense on deferred compensation liability	296		251		270
Distributions	(63)		(45)		(1,303)
Ending balance, deferred compensation liability	$	6,137	$	5,372	$	4,560

Schedule of Costs of Retirement Plans

The following table details the components of the net periodic benefit cost for the years ended December 31, 2022 and 2021:


(dollars in thousands)	2022		2021
Service cost	$	—	$	—
Interest cost	445		—
Expected return on plan assets	(828)		—
Amortization of transition obligation	14		—
Net periodic benefit cost	$	(369)	$	—

Defined Benefit Plan, Assumptions

Assumptions used to determine net periodic benefit cost:


Discount rate	2.70	%
Expected long-term return on plan assets	5.50	%
Rate of compensation increase	—	%

Schedule of Defined Benefit Plans Disclosures

The following table provides a comparison of obligations to plan assets:


(dollars in thousands)	December 31, 2022		December 31, 2021
Projected benefit obligation	$	13,016	$	16,904
Accumulated benefit obligation	13,016		16,904
Fair value of plan assets	12,765		16,890

REVENUE FROM CONTRACTS WITH CUSTOMERS

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERSThe Company’s revenue from contracts with customers in the scope of Topic 606 is recognized within noninterest income in the consolidated statements of income. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended 2022, 2021, and 2020.


	Years Ended December 31,
(dollars in thousands)		2022		2021		2020
Noninterest income - in-scope of Topic 606
Wealth management revenue:
Trust management/administration fees		$	21,704	$	20,954	$	16,953
Investment advisory fees		—		1,282		2,009
Investment brokerage fees		2,068		2,050		1,465
Other		1,936		2,525		2,375
Service charges on deposit accounts:
Nonsufficient fund fees		6,404		5,339		5,589
Other		3,076		3,009		3,014
Interchange revenues		13,879		14,500		12,266
Other income:
Merchant services revenue		1,590		1,511		1,381
Other		3,039		3,850		3,161
Noninterest income - out-of-scope of Topic 606		26,195		14,879		13,036
Total noninterest income		$	79,891	$	69,899	$	61,249

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

Service Charges on Deposit Accounts

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

Interchange Revenue

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

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

Other Noninterest Income

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

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

LOANS - Loans to Directors, Executive Officers, Principal Shareholders and Affiliates (Details) - Directors, Executive Officers, Principal Shareholders and Affiliates - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Notes Receivable [Roll Forward]
Beginning balance	$ 13,869	$ 19,693
New loans and other additions	9,804	4,745
Repayments and other reductions	(3,897)	(10,569)
Ending balance	$ 19,776	$ 13,869

SHORT-TERM BORROWINGS

12 Months Ended

Dec. 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 December 31, 2022 and 2021:


	Repurchase agreements
(dollars in thousands)	2022			2021
Outstanding at period-end	$	42,311		$	76,803
Average amount outstanding	58,688			68,986
Maximum amount outstanding at any month end	76,807			77,497
Weighted average interest rate:
During period	0.18		%	0.12		%
End of period	0.26		%	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

$46.1 million and $78.3 million at December 31, 2022 and 2021, respectively, were pledged for securities sold under agreements to repurchase.

The Company had available lines of credit of $12.2 million and $55.9 million at December 31, 2022 and 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 $14.3 million and $64.8 million at December 31, 2022 and 2021, respectively. There were no outstanding borrowings under these lines at December 31, 2022 and 2021.

At December 31, 2022, the Company had available federal funds lines of credit totaling $394.0 million. These lines of credit were unused at December 31, 2022.

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor Firm ID	173
Auditor Name	Crowe LLP
Auditor Location	Oak Brook, Illinois

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Noninterest income - out-of-scope of Topic 606	$ 26,195	$ 14,879	$ 13,036
Total noninterest income	79,891	69,899	61,249
Trust management/administration fees
Disaggregation of Revenue [Line Items]
Revenue	21,704	20,954	16,953
Investment advisory fees
Disaggregation of Revenue [Line Items]
Revenue	0	1,282	2,009
Investment brokerage fees
Disaggregation of Revenue [Line Items]
Revenue	2,068	2,050	1,465
Other
Disaggregation of Revenue [Line Items]
Revenue	1,936	2,525	2,375
Nonsufficient fund fees
Disaggregation of Revenue [Line Items]
Revenue	6,404	5,339	5,589
Other
Disaggregation of Revenue [Line Items]
Revenue	3,076	3,009	3,014
Interchange revenues
Disaggregation of Revenue [Line Items]
Revenue	13,879	14,500	12,266
Merchant services revenue
Disaggregation of Revenue [Line Items]
Revenue	1,590	1,511	1,381
Other
Disaggregation of Revenue [Line Items]
Revenue	$ 3,039	$ 3,850	$ 3,161

INVESTMENT SECURITIES - Allowance for Credit Loss and Unrealized Losses and Fair Values (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Allowance for credit losses on investment securities available-for-sale
Beginning balance	$ 221	$ 366
Current-period provision for expected credit losses	(221)	(145)
Ending balance	0	221
Fair value
Less than 12 Months, Fair value	241,906	451,195
Less than 12 Months, Unrealized loss	15,132	7,977
12 Months or more, Fair value	463,399	21,021
12 Months or more, Unrealized loss	90,258	932
Total, Fair value	705,305	472,216
Total, Unrealized loss	105,390	8,909
U.S. Treasury securities
Allowance for credit losses on investment securities available-for-sale
Beginning balance	0
Ending balance	0	0
Fair value
Less than 12 Months, Fair value	1,839	64,917
Less than 12 Months, Unrealized loss	24	430
12 Months or more, Fair value	59,865	0
12 Months or more, Unrealized loss	5,172	0
Total, Fair value	61,704	64,917
Total, Unrealized loss	5,196	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	0
Fair value
Less than 12 Months, Fair value	10,288	17,487
Less than 12 Months, Unrealized loss	40	263
12 Months or more, Fair value	23,453	9,432
12 Months or more, Unrealized loss	4,297	568
Total, Fair value	33,741	26,919
Total, Unrealized loss	4,337	831
Mortgage-backed securities - agency
Allowance for credit losses on investment securities available-for-sale
Beginning balance	0
Ending balance	0	0
Fair value
Less than 12 Months, Fair value	152,657	317,372
Less than 12 Months, Unrealized loss	9,736	6,633
12 Months or more, Fair value	273,353	9,051
12 Months or more, Unrealized loss	64,410	268
Total, Fair value	426,010	326,423
Total, Unrealized loss	74,146	6,901
Mortgage-backed securities - non-agency
Allowance for credit losses on investment securities available-for-sale
Beginning balance	0
Ending balance	0	0
Fair value
Less than 12 Months, Fair value	1,924	24,095
Less than 12 Months, Unrealized loss	270	381
12 Months or more, Fair value	18,830	0
12 Months or more, Unrealized loss	3,898	0
Total, Fair value	20,754	24,095
Total, Unrealized loss	4,168	381
State and municipal securities
Allowance for credit losses on investment securities available-for-sale
Beginning balance	0	29
Current-period provision for expected credit losses	0	(29)
Ending balance	0	0
Fair value
Less than 12 Months, Fair value	35,603	27,324
Less than 12 Months, Unrealized loss	1,662	270
12 Months or more, Fair value	41,538	2,538
12 Months or more, Unrealized loss	6,570	96
Total, Fair value	77,141	29,862
Total, Unrealized loss	8,232	366
Corporate securities
Allowance for credit losses on investment securities available-for-sale
Beginning balance	221	337
Current-period provision for expected credit losses	(221)	(116)
Ending balance	0	221
Fair value
Less than 12 Months, Fair value	39,595	0
Less than 12 Months, Unrealized loss	3,400	0
12 Months or more, Fair value	46,360	0
12 Months or more, Unrealized loss	5,911	0
Total, Fair value	85,955	0
Total, Unrealized loss	$ 9,311	$ 0

LOANS - TDRs by Portfolio (Details) - USD ($)	12 Months Ended
LOANS - TDRs by Portfolio (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Troubled debt restructuring
Allowance for loan losses on TDRs	$ 300,000	$ 700,000
Unfunded commitments	9	9
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	6,274,000	7,012,000
TDR's Nonaccrual	3,604,000	5,749,000
Total	9,878,000	12,761,000
COVID-19
Troubled debt restructuring
Modifications not considered TDRs	0	13,300,000
Commercial Loan Portfolio \| Commercial
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	1,663,000	833,000
TDR's Nonaccrual	484,000	1,422,000
Total	2,147,000	2,255,000
Commercial Loan Portfolio \| Commercial real estate
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	112,000	1,522,000
TDR's Nonaccrual	2,387,000	3,302,000
Total	2,499,000	4,824,000
Commercial Loan Portfolio \| Construction and land development
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	27,000	37,000
TDR's Nonaccrual	0	0
Total	27,000	37,000
Residential Portfolio Segment \| Residential real estate
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	3,653,000	3,128,000
TDR's Nonaccrual	712,000	784,000
Total	4,365,000	3,912,000
Consumer \| Consumer
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	56,000	98,000
TDR's Nonaccrual	0	0
Total	56,000	98,000
Lease financing
TDRs by loan portfolio (excluding PCI loans):
TDR's Accruing	763,000	1,394,000
TDR's Nonaccrual	21,000	241,000
Total	$ 784,000	$ 1,635,000

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

Our business segments are defined as Banking, Wealth Management, and Other. The reportable business segments are consistent with the internal reporting and evaluation of the principle lines of business of the Company. The Banking segment provides a wide range of financial products and services to consumers and businesses, including commercial, commercial real estate, mortgage and other consumer loan products; commercial equipment financing; 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 years ended 2022, 2021, and 2020 were as follows:


(dollars in thousands)	Banking		Wealth Management		Other		Total










Year Ended December 31, 2022
Net interest income (expense)	$	256,226	$	—	$	(10,491)	$	245,735
Provision for credit losses	20,126		—		—		20,126
Noninterest income	54,179		25,708		4		79,891
Noninterest expense	157,680		18,019		(37)		175,662
Income (loss) before income taxes (benefit)	132,599		7,689		(10,450)		129,838
Income taxes (benefit)	35,055		2,136		(6,378)		30,813
Net income (loss)	$	97,544	$	5,553	$	(4,072)	$	99,025
Total assets	$	7,841,966	$	29,332	$	(15,797)	$	7,855,501











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

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

- 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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

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

+ Details

INVESTMENT SECURITIES - Narrative (Details) $ in Millions	Dec. 31, 2022 USD ($) security	Dec. 31, 2021 USD ($)
Debt Securities, Available-for-sale [Line Items]
Number of securities in unrealized loss position (in security) \| security	391
Aggregate depreciation percentage	13.00%
Securities Investment
Debt Securities, Available-for-sale [Line Items]
Amounts pledged for public deposits \| $	$ 441.0	$ 371.0

CAPITAL REQUIREMENTS - Actual and Required Capital Amounts and Ratios (Details) $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Capital requirements and restrictions on dividends
Total Capital (to Risk Weighted Assets): Actual Amount	$ 891,320	$ 732,177
Total Capital (to Risk Weighted Assets): Actual Ratio	0.1238	0.1219
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 755,859	$ 630,482
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio	0.1050	0.1050
Common Equity Tier 1 capital (to risk-weighted assets): Actual Amount	$ 559,255	$ 485,244
Common Equity Tier 1 capital (to risk-weighted assets): Actual Ratio	7.77%	8.08%
Common Equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Amount	$ 503,906	$ 420,321
Common equity tier 1 capital (to risk-weighted assets): minimum required for adequate capital ratio	7.00%	7.00%
Tier I Capital (to Risk Weighted Assets): Actual Amount	$ 734,754	$ 550,195
Tier I Capital (to Risk Weighted Assets): Actual Ratio	0.1021	0.0916
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 611,886	$ 510,390
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio	0.0850	0.0850
Tier I Capital (to Average Assets): Actual Amount	$ 734,754	$ 550,195
Tier I Capital (to Average Assets): Actual Ratio	0.0943	0.0775
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Amount	$ 311,715	$ 283,941
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Ratio	0.0400	0.0400
Midland States Bank
Capital requirements and restrictions on dividends
Total Capital (to Risk Weighted Assets): Actual Amount	$ 827,689	$ 672,500
Total Capital (to Risk Weighted Assets): Actual Ratio	0.1151	0.1121
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 755,316	$ 629,911
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio	0.1050	0.1050
Total Capital (to Risk Weighted Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements Amount	$ 719,349	$ 599,915
Total Capital (to Risk Weighted Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements Ratio	0.1000	0.1000
Common Equity Tier 1 capital (to risk-weighted assets): Actual Amount	$ 770,566	$ 629,389
Common Equity Tier 1 capital (to risk-weighted assets): Actual Ratio	10.71%	10.49%
Common Equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Amount	$ 503,544	$ 419,940
Common equity tier 1 capital (to risk-weighted assets): minimum required for adequate capital ratio	7.00%	7.00%
Common Equity Tier 1 capital (to risk-weighted assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements Amount	$ 467,577	$ 389,945
Common Equity Tier 1 capital (to risk-weighted assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements Ratio	6.50%	6.50%
Tier I Capital (to Risk Weighted Assets): Actual Amount	$ 770,566	$ 629,389
Tier I Capital (to Risk Weighted Assets): Actual Ratio	0.1071	0.1049
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 611,447	$ 509,928
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Ratio	0.0850	0.0850
Tier I Capital (to Risk Weighted Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements Amount	$ 575,479	$ 479,932
Tier I Capital (to Risk Weighted Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements Ratio	0.0800	0.0800
Tier I Capital (to Average Assets): Actual Amount	$ 770,566	$ 629,389
Tier I Capital (to Average Assets): Actual Ratio	0.0990	0.0889
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Amount	$ 311,299	$ 283,324
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Ratio	0.0400	0.0400
Tier I Capital (to Average Assets): Required to be Well Capitalized Amount Under Prompt Corrective Action Requirements Amount	$ 389,123	$ 354,156
Tier I Capital (to Average Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements Ratio	0.0500	0.0500

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Taxes

The components of income taxes for the years ended December 31, 2022, 2021 and 2020 were as follows:


(dollars in thousands)	2022		2021		2020
Federal:
Current	$	22,792	$	10,044	$	10,924
Deferred	64		7,926		(3,852)
State:
Current	11,101		144		1,271
Deferred	(3,144)		(319)		1,134
Total income tax expense	$	30,813	$	17,795	$	9,477

Schedule of Reconciliation of Income Tax Expense

The Company’s income tax expense differed from the statutory federal rate of 21% for the years ended December 31, 2022, 2021 and 2020 as follows:


(dollars in thousands)	2022		2021		2020
Expected income taxes	$	27,266	$	20,814	$	6,723
Less income tax effect of:
Tax-exempt income, net	(2,014)		(2,499)		(2,398)

State tax, net of federal benefit	6,274		5,465		1,900

State tax settlement, net of federal expense	—		(5,614)		—
Equity-based compensation benefit	(186)		(93)		239

Disposition of nondeductible goodwill	—		—		2,287
Valuation allowance	58		47		10

Other	(585)		(325)		716
Actual income tax expense	$	30,813	$	17,795	$	9,477

Schedule of Deferred Tax Assets, Net

Deferred tax assets, net in the accompanying consolidated balance sheets at December 31, 2022 and 2021 include the following amounts of deferred tax assets and liabilities:


(dollars in thousands)	2022		2021
Assets:
Allowance for credit losses on loans	$	16,484	$	14,042
Deferred compensation	2,238		2,177
Loans	1,379		1,835

Tax credits	861		1,067

Unrealized loss on securities	28,404		—
Unrealized loss on derivatives	2,700		—

Net operating losses	8,922		10,113



Fair value adjustment on investments	287		879


Operating lease liabilities	2,415		2,946
Other, net	4,550		3,519
Deferred tax assets	68,240		36,578
Valuation allowance	(176)		(118)
Deferred tax assets, net of valuation allowance	68,064		36,460
Liabilities:
Premises and equipment	573		472
Unrealized gain on securities	—		569
Unrealized gain on derivatives	—		1,401
Mortgage servicing rights	4,217		5,958
Fair value adjustment on trust preferred debentures	4,025		4,264

Deferred loan costs, net of fees	3,006		3,444
Intangible assets	4,458		5,651


Software development costs	842		1,446
Leased equipment	24,346		22,297
Operating lease right-of-use assets	1,890		2,318
Other, net	2,222		2,218
Deferred tax liabilities	45,579		50,038
Deferred tax assets (liabilities), net	$	22,485	$	(13,578)

FHLB ADVANCES AND OTHER BORROWINGS

12 Months Ended

Dec. 31, 2022

FHLB ADVANCES AND OTHER BORROWINGS

FHLB ADVANCES AND OTHER BORROWINGS

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


(dollars in thousands)	2022		2021
Midland States Bancorp, Inc.

Series G redeemable preferred stock - 171 shares at $1,000 per share	—		171
Midland States Bank
FHLB advances – putable fixed rate at rates averaging 2.35% and 1.48% at December 31, 2022 and December 31, 2021, respectively – maturing through December 2024	110,000		210,000
FHLB advances –SOFR floater at rates averaging 5.92% and 1.67% at December 31, 2022 and December 31, 2021, respectively – maturing in October 2023	100,000		100,000
FHLB advances – Short term fixed rate at rates averaging 4.31% at December 31, 2022 – maturing in January 2023	250,000		—
Total FHLB advances and other borrowings	$	460,000	$	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 $2.90 billion and $2.10 billion at December 31, 2022 and 2021, respectively.

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


(dollars in thousands)	Amount
Year Ending December 31,
2023	$	390,000
2024	70,000




Total	$	460,000

EARNINGS PER COMMON SHARE - Narrative (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stock option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	265,831	65,033	364,272

DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2022

Deposits [Abstract]

Schedule Summarizes the Classification of Deposits

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


(dollars in thousands)	2022		2021
Noninterest-bearing demand	$	1,935,773	$	2,245,701
Interest-bearing:
Checking	1,920,458		1,663,021
Money market	1,184,101		869,067
Savings	661,932		679,115
Time	662,388		653,744
Total deposits	$	6,364,652	$	6,110,648

Time Deposit Maturities

As of December 31, 2022, the scheduled maturities of time deposits were as follows:


(dollars in thousands)	Amount
Year Ending December 31,
2023	$	323,967
2024	247,320
2025	66,861
2026	17,373
2027	6,807
Thereafter	60
Total	$	662,388

- 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

PREMISES, EQUIPMENT AND LEASES - Information Related to Operating Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Operating lease cost	$ 2,096	$ 2,080
Operating cash flows from leases	2,507	2,566
Right-of-use assets obtained in exchange for lease obligations	502	1,118
Right-of-use assets derecognized due to terminations or impairment	$ (123)	$ (210)
Weighted average remaining lease term	7 years 2 months 12 days	7 years 7 months 6 days
Weighted average discount rate	2.89%	2.85%

EARNINGS PER COMMON SHARE

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHAREEarnings per common share is calculated utilizing the two-class method. Basic earnings per common share is 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 common share is calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards. The diluted earnings per share computation for the years ended December 31, 2022, 2021 and 2020 excluded antidilutive stock options of 265,831, 65,033 and 364,272, respectively, because the exercise prices of these stock options exceeded the average market

prices of the Company’s common shares for those respective years. Presented below are the calculations for basic and diluted earnings per common share for the years ended 2022, 2021, and 2020:


	Years Ended December 31,
(dollars in thousands, except per share data)		2022		2021		2020
Net income		$	99,025	$	81,317	$	22,537
Preferred dividends declared		(3,169)		—		—

Net income available to common shareholders		95,856		81,317		22,537
Common shareholder dividends		(25,628)		(24,912)		(24,699)
Unvested restricted stock award dividends		(295)		(260)		(259)
Undistributed earnings to unvested restricted stock awards		(809)		(564)		—
Undistributed earnings to common shareholders		$	69,124	$	55,581	$	(2,421)
Basic
Distributed earnings to common shareholders		$	25,628	$	24,912	$	24,699
Undistributed earnings to common shareholders		69,124		55,581		(2,421)
Total common shareholders earnings, basic		$	94,752	$	80,493	$	22,278
Diluted
Distributed earnings to common shareholders		$	25,628	$	24,912	$	24,699
Undistributed earnings to common shareholders		69,124		55,581		(2,421)
Total common shareholders earnings		94,752		80,493		22,278
Add back:
Undistributed earnings reallocated from unvested restricted stock awards		2		2		—
Total common shareholders earnings, diluted		$	94,754	$	80,495	$	22,278
Weighted average common shares outstanding, basic		22,341,498		22,481,389		23,336,881
Options		54,200		65,964		9,245
Weighted average common shares outstanding, diluted		22,395,698		22,547,353		23,346,126
Basic earnings per common share		$	4.24	$	3.58	$	0.95
Diluted earnings per common share		4.23		3.57		0.95

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Investment securities, available-for-sale, allowance for credit loss	$ 0	$ 221
Preferred stock, par value (in dollars per share)	$ 2.00
Preferred stock, shares authorized (in shares)	4,000,000
Preferred stock, shares issued (in shares)	115,000
Preferred stock, shares outstanding (in shares)	115,000
Preferred stock, liquidation price (in dollars per share)	$ 1,000
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)	22,214,913	22,050,537
Common stock, shares outstanding (in shares)	22,214,913	22,050,537

LOANS - Summary of Loans and Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Summary of loans
Loans	$ 6,306,467	$ 5,224,801
Net deferred loan fees	4,400	4,600
Unearned income	62,600	46,100
Loans held for sale	1,286	32,045
Proceeds from sales of loans held for sale	269,958	739,954	$ 1,218,950
Commercial Loan Portfolio
Summary of loans
Loans	4,268,615	3,460,765
Lease financing
Summary of loans
Loans	491,744	423,280
Commercial Real Estate, Residential Real Estate And Consumer Loans
Summary of loans
Proceeds from sales of loans held for sale	270,000	740,000
Commercial \| Commercial Loan Portfolio
Summary of loans
Loans	786,877	770,670
Commercial other \| Commercial Loan Portfolio
Summary of loans
Loans	727,697	679,518
Commercial real estate non-owner occupied \| Commercial Loan Portfolio
Summary of loans
Loans	1,591,399	1,105,333
Commercial real estate owner occupied \| Commercial Loan Portfolio
Summary of loans
Loans	496,786	469,658
Multi-family \| Commercial Loan Portfolio
Summary of loans
Loans	277,889	171,875
Farmland \| Commercial Loan Portfolio
Summary of loans
Loans	67,085	69,962
Construction and land development \| Commercial Loan Portfolio
Summary of loans
Loans	320,882	193,749
Residential first lien \| Residential Portfolio Segment
Summary of loans
Loans	304,243	274,412
Other residential \| Residential Portfolio Segment
Summary of loans
Loans	61,851	63,739
Consumer \| Consumer
Summary of loans
Loans	105,880	106,008
Consumer other \| Consumer
Summary of loans
Loans	1,074,134	896,597
Payroll Protection Program \| Commercial Loan Portfolio
Summary of loans
Loans	1,900	52,500
Commercial FHA Warehouse Lines \| Commercial Loan Portfolio
Summary of loans
Loans	$ 25,000	$ 91,900

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Summary of the Activity for Restricted Stock Awards

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


	Number outstanding	Weighted average grant due fair value
Nonvested, beginning of year	261,818	$	23.62
Granted	121,316	28.34
Vested	(87,239)	24.20
Forfeited	(25,917)	23.83
Nonvested, end of year	269,978	$	25.53

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions

The fair value of options granted during the year ended December 31, 2022 was determined using the following weighted-average assumptions as of the grant date.


	2022
Dividend yield	4.24	%
Expected volatility	23.81	%
Risk free interest rate	4.23	%
Expected life	6.25 years

Summary of our Stock Option Plan and Changes Made

The summary of our stock option activity for the year ended December 31, 2022 is as follows:


	2022
	Shares	Weighted average exercise price		Weighted average remaining contractual life
Option outstanding, beginning of year	324,794	$	21.74
Options granted	220,730	28.43
Options exercised	(113,035)	18.24

Options expired	(16,917)	32.53
Options outstanding, end of year	415,572	25.81		6.5 years
Options exercisable	194,842	22.84		2.6 years
Options vested and expected to vest	415,572	25.81		6.5 years

Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award

The following table includes information related to stock option exercises for the years ended December 31, 2022, 2021, and 2020.


(dollars in thousands)	2022		2021		2020
Cash received from options exercised	$	2,061	$	2,225	$	707
Intrinsic value from options exercised	943		814		159
Tax benefit from options exercised	198		171		32

GOODWILL AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

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


(dollars in thousands)	2022		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 December 31, 2022 and 2021 are summarized as follows:


	December 31, 2022						December 31, 2021
(dollars in thousands)	Gross carrying amount		Accumulated amortization		Total		Gross carrying amount		Accumulated amortization		Total
Core deposit intangibles	$	58,913	$	(44,723)	$	14,190	$	57,012	$	(40,603)	$	16,409
Customer relationship intangibles	15,919		(9,243)		6,676		15,918		(7,953)		7,965
Total intangible assets	$	74,832	$	(53,966)	$	20,866	$	72,930	$	(48,556)	$	24,374

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated amortization expense for future years is as follows:


(dollars in thousands)	Amount
Year ending December 31,
2023	$	4,758
2024	4,008
2025	3,223
2026	2,672
2027	2,101
Thereafter	4,104
Total	$	20,866

CAPITAL REQUIREMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Capital Requirements [Abstract]

Schedule of Actual and Required Capital Amounts and Ratios

At December 31, 2022 and 2021, the Company’s and the Bank’s actual and required capital ratios were as follows:


	Actual				Fully Phased-In Regulatory Guidelines Minimum				Required to be Well Capitalized Under Prompt Corrective Action Requirements
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2022
Total risk-based capital ratio
Midland States Bancorp, Inc.	$	891,320	12.38	%	$	755,859	10.50	%	N/A		N/A
Midland States Bank	827,689		11.51		755,316		10.50		$	719,349	10.00%
Tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	734,754		10.21		611,886		8.50		N/A		N/A
Midland States Bank	770,566		10.71		611,447		8.50		575,479		8.00
Common equity tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	559,255		7.77		503,906		7.00		N/A		N/A
Midland States Bank	770,566		10.71		503,544		7.00		467,577		6.50
Tier 1 leverage ratio
Midland States Bancorp, Inc.	734,754		9.43		311,715		4.00		N/A		N/A
Midland States Bank	770,566		9.90		311,299		4.00		389,123		5.00

December 31, 2021
Total risk-based capital ratio
Midland States Bancorp, Inc.	$	732,177	12.19	%	$	630,482	10.50	%	N/A		N/A
Midland States Bank	672,500		11.21		629,911		10.50		$	599,915	10.00%
Tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	550,195		9.16		510,390		8.50		N/A		N/A
Midland States Bank	629,389		10.49		509,928		8.50		479,932		8.00
Common equity tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	485,244		8.08		420,321		7.00		N/A		N/A
Midland States Bank	629,389		10.49		419,940		7.00		389,945		6.50
Tier 1 leverage ratio
Midland States Bancorp, Inc.	550,195		7.75		283,941		4.00		N/A		N/A
Midland States Bank	629,389		8.89		283,324		4.00		354,156		5.00

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net income	$ 99,025	$ 81,317	$ 22,537
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense	2,211	1,938	2,175
Other assets	(9,434)	(31,974)	(31,961)
Change in other liabilities	(13,579)	24,404	4,750
Net cash provided by operating activities	236,755	334,438	499,147
Cash flows from investing activities:
Net cash used in investing activities	(1,098,887)	(478,495)	(1,312,433)
Cash flows from financing activities:
Payments made on subordinated debt	(40,000)	(31,075)	(7,443)
Subordinated debt prepayment fees	0	0	193
Common stock repurchased	(1,109)	(11,692)	(39,615)
Cash dividends paid on common stock	(25,923)	(25,172)	(24,958)
Cash dividends paid on preferred stock	(3,169)	0	0
Proceeds from issuance of preferred stock	110,548	0	0
Proceeds from issuance of common stock under employee benefit plans	2,188	2,249	2,524
Net cash provided by financing activities	332,082	482,788	760,421
Net (decrease) increase in cash and cash equivalents	(530,050)	338,731	(52,865)
Cash and cash equivalents:
Beginning of period	680,371
End of period	150,321	680,371
Midland States Bancorp, Inc.
Cash flows from operating activities:
Net income	99,025	81,317	22,537
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed (income) loss of subsidiaries	(90,021)	(44,582)	56,739
Share-based compensation expense	2,211	1,938	2,175
Other assets	(373)	3,223	(6,382)
Change in other liabilities	1,639	763	471
Net cash provided by operating activities	12,481	42,659	75,540
Cash flows from investing activities:
Capital injection to bank subsidiary	(50,000)	0	0
Note receivable to bank subsidiary	(40,000)	0	0
Net cash received in dissolution of subsidiary	0	2,003	0
Net cash used in investing activities	(90,000)	2,003	0
Cash flows from financing activities:
Payments on other borrowings	(171)	0	(10)
Payments made on subordinated debt	(40,000)	(31,075)	(7,443)
Subordinated debt prepayment fees	0	0	193
Common stock repurchased	(1,109)	(11,692)	(39,615)
Cash dividends paid on common stock	(25,923)	(25,172)	(24,958)
Cash dividends paid on preferred stock	(3,169)	0	0
Proceeds from issuance of preferred stock	110,548	0	0
Proceeds from issuance of common stock under employee benefit plans	2,188	2,249	2,524
Net cash provided by financing activities	42,364	(65,690)	(69,309)
Net (decrease) increase in cash and cash equivalents	(35,155)	(21,028)	6,231
Cash and cash equivalents:
Beginning of period	37,876	58,904	52,673
End of period	$ 2,721	$ 37,876	$ 58,904

LOANS - Aging Status of Recorded Investment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Aging Status of recorded investment
Loans	$ 6,306,467	$ 5,224,801
Total nonaccrual	41,976	35,563
Nonperforming
Aging Status of recorded investment
Total nonaccrual	41,976	35,563
30-59 days past due \| Performing
Aging Status of recorded investment
Loans	17,328	10,069
60-89 days past due \| Performing
Aging Status of recorded investment
Loans	15,044	7,445
Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	1,173	6
Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	33,545	17,520
Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	6,230,946	5,171,718
Commercial Loan Portfolio
Aging Status of recorded investment
Loans	4,268,615	3,460,765
Total nonaccrual	35,882	29,159
Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	35,882	29,159
Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	7,123	3,697
Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	9,476	4,386
Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	0	5
Commercial Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	16,599	8,088
Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	4,216,134	3,423,518
Lease financing
Aging Status of recorded investment
Loans	491,744	423,280
Lease financing \| Performing
Aging Status of recorded investment
Loans	489,375	420,376
Lease financing \| Nonperforming
Aging Status of recorded investment
Loans	2,369	2,904
Total nonaccrual	1,606	1,510
Lease financing \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	4,415	1,253
Lease financing \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	1,522	245
Lease financing \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	0	0
Lease financing \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	5,937	1,498
Lease financing \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	484,201	420,272
Commercial \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	786,877	770,670
Total nonaccrual	3,021	6,956
Commercial \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	3,021	6,956
Commercial \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	7	283
Commercial \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	112	1,082
Commercial \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	0	0
Commercial \| Commercial Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	119	1,365
Commercial \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	783,737	762,349
Commercial other \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	727,697	679,518
Total nonaccrual	3,169	4,467
Commercial other \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	3,169	4,467
Commercial other \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	6,035	2,402
Commercial other \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	2,365	2,110
Commercial other \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	0	5
Commercial other \| Commercial Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	8,400	4,517
Commercial other \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	716,128	670,534
Commercial real estate non-owner occupied \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	1,591,399	1,105,333
Total nonaccrual	13,244	11,826
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	13,244	11,826
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	1,008	585
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	999	243
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	0	0
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	2,007	828
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	1,576,148	1,092,679
Commercial real estate owner occupied \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	496,786	469,658
Total nonaccrual	7,118	3,504
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	7,118	3,504
Commercial real estate owner occupied \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	73	232
Commercial real estate owner occupied \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	0	730
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	0	0
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	73	962
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	489,595	465,192
Multi-family \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	277,889	171,875
Total nonaccrual	9,103	2,168
Multi-family \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	9,103	2,168
Multi-family \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	0	0
Multi-family \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	0	0
Multi-family \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	0	0
Multi-family \| Commercial Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	0	0
Multi-family \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	268,786	169,707
Farmland \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	67,085	69,962
Total nonaccrual	25	155
Farmland \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	25	155
Farmland \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	0	0
Farmland \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	0	26
Farmland \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	0	0
Farmland \| Commercial Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	0	26
Farmland \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	67,060	69,781
Construction and land development \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	320,882	193,749
Total nonaccrual	202	83
Construction and land development \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	202	83
Construction and land development \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	0	195
Construction and land development \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	6,000	195
Construction and land development \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	0	0
Construction and land development \| Commercial Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	6,000	390
Construction and land development \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	314,680	193,276
Residential first lien \| Residential Portfolio Segment
Aging Status of recorded investment
Loans	304,243	274,412
Total nonaccrual	3,497	3,948
Residential first lien \| Residential Portfolio Segment \| Performing
Aging Status of recorded investment
Loans	297,663	268,207
Residential first lien \| Residential Portfolio Segment \| Nonperforming
Aging Status of recorded investment
Loans	6,580	6,205
Total nonaccrual	3,497	3,948
Residential first lien \| Residential Portfolio Segment \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	82	113
Residential first lien \| Residential Portfolio Segment \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	456	285
Residential first lien \| Residential Portfolio Segment \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	428	0
Residential first lien \| Residential Portfolio Segment \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	966	398
Residential first lien \| Residential Portfolio Segment \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	299,780	270,066
Other residential \| Residential Portfolio Segment
Aging Status of recorded investment
Loans	61,851	63,739
Total nonaccrual	871	836
Other residential \| Residential Portfolio Segment \| Performing
Aging Status of recorded investment
Loans	59,982	62,032
Other residential \| Residential Portfolio Segment \| Nonperforming
Aging Status of recorded investment
Loans	1,869	1,707
Total nonaccrual	871	836
Other residential \| Residential Portfolio Segment \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	188	456
Other residential \| Residential Portfolio Segment \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	13	151
Other residential \| Residential Portfolio Segment \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	0	0
Other residential \| Residential Portfolio Segment \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	201	607
Other residential \| Residential Portfolio Segment \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	60,779	62,296
Consumer \| Consumer
Aging Status of recorded investment
Loans	105,880	106,008
Total nonaccrual	120	110
Consumer \| Consumer \| Performing
Aging Status of recorded investment
Loans	105,692	105,800
Consumer \| Consumer \| Nonperforming
Aging Status of recorded investment
Loans	188	208
Total nonaccrual	120	110
Consumer \| Consumer \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	139	127
Consumer \| Consumer \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	18	20
Consumer \| Consumer \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	12	0
Consumer \| Consumer \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	169	147
Consumer \| Consumer \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	105,591	105,751
Consumer other \| Consumer
Aging Status of recorded investment
Loans	1,074,134	896,597
Consumer other \| Consumer \| Performing
Aging Status of recorded investment
Loans	1,073,401	896,596
Consumer other \| Consumer \| Nonperforming
Aging Status of recorded investment
Loans	733	1
Total nonaccrual	0	0
Consumer other \| Consumer \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	5,381	4,423
Consumer other \| Consumer \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	3,559	2,358
Consumer other \| Consumer \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	733	1
Consumer other \| Consumer \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	9,673	6,782
Consumer other \| Consumer \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	1,064,461	889,815
Lease financing \| Lease financing
Aging Status of recorded investment
Total nonaccrual	$ 1,606	$ 1,510