0001466026-24-000009 | 10-K | XBRL Viewer | Midland States Bancorp INC

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LOANS - Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Summary of loans
Collateral dependent loans	$ 31,769	$ 27,681
Real Estate
Summary of loans
Collateral dependent loans	28,565	26,077
Blanket Lien
Summary of loans
Collateral dependent loans	0	1,604
Equipment
Summary of loans
Collateral dependent loans	3,204	0
Commercial \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	1,972	1,604
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	0	1,604
Commercial \| Commercial Loan Portfolio \| Equipment
Summary of loans
Collateral dependent loans	1,972	0
Commercial other \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	1,232
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	1,232
Commercial real estate non-owner occupied \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	14,147	13,033
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	14,147	13,033
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	9,275	3,874
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	9,275	3,874
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	5,143	8,950
Multi-family \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	5,143	8,950
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 Loan Portfolio
Summary of loans
Collateral dependent loans		220
Residential first lien \| Residential Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans		220
Residential first lien \| Residential Loan Portfolio \| Blanket Lien
Summary of loans
Collateral dependent loans		0
Residential first lien \| Residential Loan Portfolio \| Equipment
Summary of loans
Collateral dependent loans		$ 0

SUBORDINATED DEBT - Subordinated Debt (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Subordinated Borrowing [Line Items]
Outstanding amount	$ 94,000	$ 100,550
Carrying amount	93,546	99,772
5.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Outstanding amount	66,750	72,750
Carrying amount	$ 66,573	$ 72,300
Current rate	5.00%	5.00%
5.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Outstanding amount	$ 27,250	$ 27,250
Carrying amount	$ 26,973	$ 26,925
Current rate	5.50%	5.50%
6.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Outstanding amount	$ 0	$ 550
Carrying amount	$ 0	$ 547
Current rate		6.50%
Three month SOFR \| 5.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Variable rate	3.61%
Three month SOFR \| 5.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Variable rate	4.05%

CAPITAL REQUIREMENTS (Tables)

12 Months Ended

Dec. 31, 2023

Capital Requirements [Abstract]

Schedule of Actual and Required Capital Amounts and Ratios

At December 31, 2023 and 2022, 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, 2023
Total risk-based capital ratio
Midland States Bancorp, Inc.	$	923,101	13.20	%	$	734,070	10.50	%	N/A		N/A
Midland States Bank	865,910		12.40		733,312		10.50		$	698,392	10.00%
Tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	762,508		10.91		594,247		8.50		N/A		N/A
Midland States Bank	798,862		11.44		593,633		8.50		558,714		8.00
Common equity tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	587,009		8.40		489,380		7.00		N/A		N/A
Midland States Bank	798,863		11.44		488,874		7.00		453,955		6.50
Tier 1 leverage ratio
Midland States Bancorp, Inc.	762,508		9.71		314,228		4.00		N/A		N/A
Midland States Bank	798,863		10.18		313,868		4.00		392,335		5.00

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

ACQUISITIONS

12 Months Ended

Dec. 31, 2023

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.

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Components of Income Taxes

The components of income taxes for the years ended December 31, 2023, 2022 and 2021 were as follows:


(dollars in thousands)	2023		2022		2021
Federal:
Current	$	25,221	$	22,792	$	10,044
Deferred	(1,791)		64		7,926
State:
Current	9,226		11,101		144
Deferred	(543)		(3,144)		(319)
Total income tax expense	$	32,113	$	30,813	$	17,795

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, 2023, 2022 and 2021 as follows:


(dollars in thousands)	2023		2022		2021
Expected income taxes	$	22,590	$	27,266	$	20,814
Less income tax effect of:
Tax-exempt income, net	(1,762)		(2,014)		(2,499)

State tax, net of federal benefit	6,844		6,274		5,465

State tax settlement, net of federal expense	—		—		(5,614)
Equity-based compensation benefit	(21)		(186)		(93)


Surrender of company-owned life insurance policies	3,756		—		—
Valuation allowance	69		58		47

Other	637		(585)		(325)
Actual income tax expense	$	32,113	$	30,813	$	17,795

Schedule of Deferred Tax Assets, Net

Deferred tax assets, net in the accompanying consolidated balance sheets at December 31, 2023 and 2022 include the following amounts of deferred tax assets and liabilities:


(dollars in thousands)	2023		2022
Assets:
Allowance for credit losses on loans	$	18,496	$	16,484
Deferred compensation	2,108		2,238
Loans	1,069		1,379

Tax credits	621		861

Unrealized loss on securities	26,022		28,404
Unrealized loss on derivatives	2,280		2,700

Net operating losses	8,090		8,922






Operating lease liabilities	2,521		2,415
Other, net	2,842		4,837
Deferred tax assets	64,049		68,240
Valuation allowance	(244)		(176)
Deferred tax assets, net of valuation allowance	63,805		68,064
Liabilities:
Premises and equipment	786		573


Mortgage servicing rights	3,870		4,217
Fair value adjustment on trust preferred debentures	3,853		4,025

Deferred loan costs, net of fees	2,410		3,006
Intangible assets	3,577		4,458



Leased equipment	23,824		24,346
Operating lease right-of-use assets	2,072		1,890
Other, net	1,202		3,064
Deferred tax liabilities	41,594		45,579
Deferred tax assets, net	$	22,211	$	22,485

TRUST PREFERRED DEBENTURES - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Mar. 26, 2004
TRUST PREFERRED DEBENTURES
Face amount	$ 94,000	$ 100,550
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

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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Fair value of investment in security owned.

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+ Details

DERIVATIVE INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Derivative disclosures
Net gains (losses) on derivative instruments	$ 0	$ 17,531	$ 2,159
Commercial FHA
Derivative disclosures
Net gains (losses) on derivative instruments	(100)	(400)	$ (1,500)
Interest rate swap contracts
Derivative disclosures
Notional amount of interest rate swaps	6,900	7,400
Interest rate swap contracts \| Other liabilities
Derivative disclosures
Fair value of offsetting counterparty derivative instruments	$ 300	$ 400

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2023

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	269,978	$	25.53
Granted	196,906	23.04
Vested	(93,837)	24.93
Forfeited	(32,033)	25.58
Nonvested, end of year	341,014	$	24.25

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, 2023 is as follows:


	2023
	Shares	Weighted average exercise price		Weighted average remaining contractual life
Option outstanding, beginning of year	415,572	$	25.81
Options granted	—	N/A
Options exercised	(42,437)	18.45
Options forfeited	(30,179)	28.43
Options expired	—	N/A
Options outstanding, end of year	342,956	26.49		5.7 years
Options exercisable	200,044	25.10		3.5 years
Options vested and expected to vest	342,956	26.49		5.7 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, 2023, 2022, and 2021.


(dollars in thousands)	2023		2022		2021
Cash received from options exercised	$	783	$	2,061	$	2,225
Intrinsic value from options exercised	230		943		814
Tax benefit from options exercised	48		198		171

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Noninterest income - out-of-scope of Topic 606	$ 11,408	$ 26,195	$ 14,879
Total noninterest income	66,590	79,891	69,899
Trust management/administration fees
Disaggregation of Revenue [Line Items]
Revenue	22,208	21,704	20,954
Investment advisory fees
Disaggregation of Revenue [Line Items]
Revenue	6	0	1,282
Investment brokerage fees
Disaggregation of Revenue [Line Items]
Revenue	1,720	2,068	2,050
Other
Disaggregation of Revenue [Line Items]
Revenue	1,638	1,936	2,525
Nonsufficient fund fees
Disaggregation of Revenue [Line Items]
Revenue	7,325	6,404	5,339
Other
Disaggregation of Revenue [Line Items]
Revenue	4,665	3,076	3,009
Interchange revenues
Disaggregation of Revenue [Line Items]
Revenue	14,302	13,879	14,500
Merchant services revenue
Disaggregation of Revenue [Line Items]
Revenue	1,592	1,590	1,511
Other
Disaggregation of Revenue [Line Items]
Revenue	$ 1,726	$ 3,039	$ 3,850

LOAN SERVICING RIGHTS - Changes in MSR (Details) - Commercial FHA - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Loan servicing rights, Beginning balance		$ 0	$ 27,386	$ 38,322
Servicing rights transferred from (to) held for sale	$ (24,000)	20,473	(23,995)	0
Amortization		(1,200)	(1,907)	(2,965)
Refinancing fee received from third party		0	(221)	(439)
Permanent impairment		0	(1,263)	(7,532)
Loan servicing rights, Ending balance		19,273	0	27,386
Fair value, Beginning of period		32,469	0	28,368	$ 38,322
Fair value, End of period		$ 32,469	$ 0	$ 28,368

DEPOSITS - Scheduled Maturities of Time Deposits (Details) $ in Thousands	Dec. 31, 2023 USD ($)
Schedule of maturities of time deposits
2024	$ 806,156
2025	102,413
2026	38,566
2027	7,026
2028	3,237
Time Deposits, Total	$ 957,398

LOANS - Risk Rating (Details) - Consumer Loans And Equipment Finance Loans And Leases	Dec. 31, 2023
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

SHARE BASED COMPENSATION

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

The Company awards select employees and directors certain forms of share-based incentives under the 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 $2.5 million, $2.2 million and $1.9 million for the years ended December 31, 2023, 2022, and 2021, 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	269,978	$	25.53
Granted	196,906	23.04
Vested	(93,837)	24.93
Forfeited	(32,033)	25.58
Nonvested, end of year	341,014	$	24.25

As of December 31, 2023, there was $7.8 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 3.16 years.

The total fair value of shares vested during the years ended December 31, 2023, 2022, and 2021 was $2.1 million, $2.4 million and $2.1 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, 2023 and 2021. 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 weighted average fair value of stock options granted during the year ended December 31, 2022 was $4.92.

The summary of our stock option activity for the year ended December 31, 2023 is as follows:


	2023
	Shares	Weighted average exercise price		Weighted average remaining contractual life
Option outstanding, beginning of year	415,572	$	25.81
Options granted	—	N/A
Options exercised	(42,437)	18.45
Options forfeited	(30,179)	28.43
Options expired	—	N/A
Options outstanding, end of year	342,956	26.49		5.7 years
Options exercisable	200,044	25.10		3.5 years
Options vested and expected to vest	342,956	26.49		5.7 years

The aggregate intrinsic value of options outstanding and exercisable as of December 31, 2023 was $0.6 million. As of December 31, 2023, there was $0.7 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 2.8 years.

The following table includes information related to stock option exercises for the years ended December 31, 2023, 2022, and 2021.


(dollars in thousands)	2023		2022		2021
Cash received from options exercised	$	783	$	2,061	$	2,225
Intrinsic value from options exercised	230		943		814
Tax benefit from options exercised	48		198		171

PARENT COMPANY ONLY FINANCIAL INFORMATION - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($)
Midland States Bank
Related Party Transaction [Line Items]
Proceeds from borrowings	$ 30.0

ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands	Jun. 01, 2021	Jun. 17, 2022
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

LOANS - Summary of Changes in the ACL on Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Changes in allowance for credit losses on loans
Balance, beginning of period	$ 61,051	$ 51,062	$ 60,443
Provision for credit losses on loans	21,132	18,797	3,950
Charge-offs	(20,301)	(11,103)	(15,420)
Recoveries	6,620	2,295	2,089
Balance, end of period	68,502	61,051	51,062
Commercial Loan Portfolio
Changes in allowance for credit losses on loans
Charge-offs	(13,958)
Commercial Loan Portfolio \| Commercial
Changes in allowance for credit losses on loans
Balance, beginning of period	14,639	14,375	19,851
Provision for credit losses on loans	12,780	3,984	648
Charge-offs	(7,357)	(4,121)	(6,465)
Recoveries	1,785	401	341
Balance, end of period	21,847	14,639	14,375
Commercial Loan Portfolio \| Commercial real estate
Changes in allowance for credit losses on loans
Balance, beginning of period	29,290	22,993	25,465
Provision for credit losses on loans	(8,067)	10,396	1,031
Charge-offs	(5,000)	(4,106)	(3,524)
Recoveries	4,006	7	21
Balance, end of period	20,229	29,290	22,993
Commercial Loan Portfolio \| Construction and land development
Changes in allowance for credit losses on loans
Balance, beginning of period	2,435	972	1,433
Provision for credit losses on loans	3,296	1,439	(234)
Charge-offs	(1,601)	(6)	(448)
Recoveries	33	30	221
Balance, end of period	4,163	2,435	972
Residential Loan Portfolio \| Residential real estate
Changes in allowance for credit losses on loans
Balance, beginning of period	4,301	2,695	3,929
Provision for credit losses on loans	1,385	1,698	(1,085)
Charge-offs	(271)	(344)	(398)
Recoveries	138	252	249
Balance, end of period	5,553	4,301	2,695
Consumer Loan Portfolio \| Consumer
Changes in allowance for credit losses on loans
Balance, beginning of period	3,599	2,558	2,338
Provision for credit losses on loans	929	1,813	864
Charge-offs	(1,046)	(1,229)	(1,158)
Recoveries	288	457	514
Balance, end of period	3,770	3,599	2,558
Lease Loan Portfolio
Changes in allowance for credit losses on loans
Balance, beginning of period	6,787	7,469	7,427
Provision for credit losses on loans	10,809	(533)	2,726
Charge-offs	(5,026)	(1,297)	(3,427)
Recoveries	370	1,148	743
Balance, end of period	$ 12,940	$ 6,787	$ 7,469

DEPOSITS - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Deposits [Abstract]
Time deposits $250,000 or more	$ 179.2	$ 118.6

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables)

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of Loan Commitments

The commitments are principally tied to variable rates. Loan commitments as of December 31, 2023 and December 31, 2022 were as follows:


(dollars in thousands)	December 31, 2023		December 31, 2022
Commitments to extend credit	$	855,489	$	1,276,263
Financial guarantees – standby letters of credit	22,745		23,748

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2023
Audit Information [Abstract]
Auditor Firm ID	173
Auditor Name	Crowe LLP
Auditor Location	Oak Brook, Illinois

SHARE-BASED COMPENSATION - Options (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]
Cash received from options exercised	$ 783	$ 2,061	$ 2,225
Intrinsic value from options exercised	230	943	814
Tax benefit from options exercised	$ 48	$ 198	$ 171

INVESTMENT SECURITIES - Classified (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Investment securities available for sale
Amortized cost	$ 1,012,592	$ 873,023
Gross unrealized gains	3,217	601
Gross unrealized losses	99,914	105,390
Fair value	915,895	768,234
U.S. Treasury securities
Investment securities available for sale
Amortized cost	1,097	86,313
Gross unrealized gains	0	113
Gross unrealized losses	0	5,196
Fair value	1,097	81,230
U.S. government sponsored entities and U.S. agency securities
Investment securities available for sale
Amortized cost	74,161	41,775
Gross unrealized gains	176	71
Gross unrealized losses	1,765	4,337
Fair value	72,572	37,509
Mortgage-backed securities - agency
Investment securities available for sale
Amortized cost	650,119	522,028
Gross unrealized gains	2,325	268
Gross unrealized losses	77,944	74,146
Fair value	574,500	448,150
Mortgage-backed securities - non-agency
Investment securities available for sale
Amortized cost	87,019	24,922
Gross unrealized gains	414	0
Gross unrealized losses	3,904	4,168
Fair value	83,529	20,754
State and municipal securities
Investment securities available for sale
Amortized cost	62,952	102,719
Gross unrealized gains	258	149
Gross unrealized losses	5,750	8,232
Fair value	57,460	94,636
Collateralized loan obligations
Investment securities available for sale
Amortized cost	27,646
Gross unrealized gains	3
Gross unrealized losses	84
Fair value	27,565
Corporate securities
Investment securities available for sale
Amortized cost	109,598	95,266
Gross unrealized gains	41	0
Gross unrealized losses	10,467	9,311
Fair value	$ 99,172	$ 85,955

PREMISES, EQUIPMENT AND LEASES (Tables)

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Summary of Premises and Equipment

A summary of premises, equipment and leases at December 31, 2023 and December 31, 2022 is as follows:


	December 31,		December 31,
(dollars in thousands)	2023		2022
Land	$	15,968	$	16,004
Buildings and improvements	78,104		71,837
Furniture and equipment	35,797		34,081
Lease right-of-use assets	7,673		7,001
Total	137,542		128,923
Accumulated depreciation	(54,728)		(50,630)
Premises and equipment, net	$	82,814	$	78,293

Summary of Information Related to Operating Leases

Information related to operating leases for the years ended December 31, 2023 and 2022 was as follows:


	Years Ended December 31,
(dollars in thousands)		2023			2022
Operating lease cost		$	1,919		$	2,096
Operating cash flows from leases		2,256			2,507
Right-of-use assets obtained in exchange for lease obligations		2,470			502
Right-of-use assets derecognized due to terminations or impairment		—			(123)
Weighted average remaining lease term		7.8 years			7.2 years
Weighted average discount rate		3.41		%	2.89		%

Summary of Projected Minimum Rental Payments

The projected minimum rental payments under the terms of the leases as of December 31, 2023 were as follows:


(dollars in thousands)	Amount
Year ending December 31:
2024	$	2,025
2025	1,322
2026	1,197
2027	1,101
2028	1,074
Thereafter	3,976
Total future minimum lease payments	10,695
Less imputed interest	(1,360)
Total operating lease liabilities	$	9,335

LOAN SERVICING RIGHTS - Loan Servicing Rights and Carrying Value (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Servicing Assets at Fair Value [Line Items]
Serviced Loans	$ 2,352,713	$ 2,556,996
Carrying Value	20,253	21,950
Commercial FHA
Servicing Assets at Fair Value [Line Items]
Serviced Loans	2,084,961	0
Carrying Value	19,273	0
SBA
Servicing Assets at Fair Value [Line Items]
Serviced Loans	42,685	46,081
Carrying Value	549	656
Residential
Servicing Assets at Fair Value [Line Items]
Serviced Loans	225,067	255,298
Carrying Value	431	549
Commercial FHA held for sale
Servicing Assets at Fair Value [Line Items]
Serviced Loans	0	2,255,617
Carrying Value	$ 0	$ 20,745

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Summary of Noninterest Income, Segregated by Revenue

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2023, 2022 and 2021.


	Years Ended December 31,
(dollars in thousands)		2023		2022		2021
Noninterest income - in-scope of Topic 606
Wealth management revenue:
Trust management/administration fees		$	22,208	$	21,704	$	20,954
Investment advisory fees		6		—		1,282
Investment brokerage fees		1,720		2,068		2,050
Other		1,638		1,936		2,525
Service charges on deposit accounts:
Nonsufficient fund fees		7,325		6,404		5,339
Other		4,665		3,076		3,009
Interchange revenues		14,302		13,879		14,500
Other income:
Merchant services revenue		1,592		1,590		1,511
Other		1,726		3,039		3,850
Noninterest income - out-of-scope of Topic 606		11,408		26,195		14,879
Total noninterest income		$	66,590	$	79,891	$	69,899

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2023

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)	2023		2022		2021
Supplemental disclosures of cash flow information:
Cash payments for:
Interest paid on deposits and borrowed funds	$	159,139	$	55,069	$	31,735
Income tax paid (net of refunds)	25,120		36,514		7,759
Supplemental disclosures of noncash investing and financing activities:
Transfer of loans to loans held for sale	—		103,357		123,117
Transfer of loans to other real estate owned	9,112		517		805
Transfer of premises and equipment, net to assets held for sale	—		—		23
Transfer of loan servicing rights, at lower of cost or market to loan servicing rights held for sale	—		23,995		705
Transfer of loan servicing rights held for sale to loan servicing rights, at lower of cost or market	20,745		—		—
Right of use assets obtained in exchange for lease obligations	2,470		502		1,118

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, 2023 and December 31, 2022:


(dollars in thousands)	December 31, 2023		December 31, 2022
Commercial:
Commercial	$	825,938	$	786,877
Commercial other	656,592		727,697
Commercial real estate:
Commercial real estate non-owner occupied	1,622,668		1,591,399
Commercial real estate owner occupied	436,857		496,786
Multi-family	279,904		277,889
Farmland	67,416		67,085
Construction and land development	452,593		320,882
Total commercial loans	4,341,968		4,268,615
Residential real estate:
Residential first lien	317,388		304,243
Other residential	63,195		61,851
Consumer:
Consumer	107,743		105,880
Consumer other	827,435		1,074,134
Lease financing	473,350		491,744
Total loans	$	6,131,079	$	6,306,467

RETIREMENT PLANS (Tables)

12 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

Schedule of Deferred Compensation Arrangement

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, 2023, 2022, and 2021:


(dollars in thousands)	2023		2022		2021
Beginning balance, trust asset	$	3,294	$	3,714	$	3,657
Contributions	255		446		207
Gain (loss) on trust assets	427		(474)		359
Distributions	(396)		(392)		(509)
Ending balance, trust asset	$	3,580	$	3,294	$	3,714

Beginning balance, deferred compensation liability	$	3,294	$	3,714	$	3,657
Employee deferrals	255		446		207
Expense on deferred compensation liability	427		(474)		359
Distributions	(396)		(392)		(509)
Ending balance, deferred compensation liability	$	3,580	$	3,294	$	3,714

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, 2023, 2022, and 2021:


(dollars in thousands)	2023		2022		2021
Beginning balance, deferred compensation liability	$	6,137	$	5,372	$	4,560
Deferred compensation	396		532		606
Expense on deferred compensation liability	323		296		251
Distributions	(803)		(63)		(45)
Ending balance, deferred compensation liability	$	6,053	$	6,137	$	5,372

Schedule of Costs of Retirement Plans

The following table details the components of the net periodic benefit cost for the years ended December 31, 2023 and 2022:


(dollars in thousands)	2023		2022
Service cost	$	—	$	—
Interest cost	635		445
Expected return on plan assets	(511)		(828)
Amortization of transition obligation	—		14
Net periodic benefit cost	$	124	$	(369)

Defined Benefit Plan, Assumptions

Assumptions used to determine net periodic benefit cost:


	2023		2022
Discount rate	5.05	%	2.70	%
Expected long-term return on plan assets	4.75	%	5.50	%
Rate of compensation increase	N/A		N/A

Schedule of Defined Benefit Plans Disclosures

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


(dollars in thousands)	December 31, 2023		December 31, 2022
Projected benefit obligation	$	13,353	$	13,016
Accumulated benefit obligation	13,353		13,016
Fair value of plan assets	12,768		12,765

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY—(UNAUDITED) - USD ($) $ in Thousands	Total	Preferred stock	Common stock	Capital surplus	Retained earnings	Accumulated other comprehensive (loss) income
Beginning 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 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 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 declared	(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)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	75,460				75,460
Other comprehensive loss	7,044					7,044
Common dividends declared	(26,573)				(26,573)
Preferred dividends declared	(8,913)				(8,913)
Common stock repurchased	(17,898)		(8)	(17,890)
Share-based compensation expense	2,489			2,489
Issuance of common stock under employee benefit plans	1,670		2	1,668
Ending Balance at Dec. 31, 2023	$ 791,853	$ 110,548	$ 216	$ 435,463	$ 322,379	$ (76,753)

SUBORDINATED DEBT (Tables)

12 Months Ended

Dec. 31, 2023

Subordinated Borrowings [Abstract]

Schedule of Summary of Company's Subordinated Debt

The following table summarizes the Company’s subordinated debt at December 31, 2023 and December 31, 2022:


	Subordinated debt
	Fixed to Float						Fixed
(dollars in thousands)	Issued September 2019			Issued September 2019			Issued June 2015			Total
At December 31, 2023
Outstanding amount	$	66,750		$	27,250		$	—		$	94,000
Carrying amount	66,573			26,973			—			93,546
Current rate	5.00		%	5.50		%	N/A
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		%
Maturity date	9/30/2029			9/30/2034			6/18/2025
Optional redemption date	9/30/2024			9/30/2029			N/A
Fixed to variable conversion date	9/30/2024			9/30/2029			N/A
Variable rate	3-month SOFR plus 3.61%			3-month SOFR plus 4.05%			N/A
Interest payment terms	Semiannually			Semiannually			Semiannually

EARNINGS PER COMMON SHARE

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

Earnings 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. Presented below are the calculations for basic and diluted earnings per common share for the years ended 2023, 2022, and 2021:


	Years Ended December 31,
(dollars in thousands, except per share data)		2023		2022		2021
Net income		$	75,460	$	99,025	$	81,317
Preferred dividends declared		(8,913)		(3,169)		—

Net income available to common shareholders		66,547		95,856		81,317
Common shareholder dividends		(26,234)		(25,628)		(24,912)
Unvested restricted stock award dividends		(339)		(295)		(260)
Undistributed earnings to unvested restricted stock awards		(565)		(809)		(564)
Undistributed earnings to common shareholders		$	39,409	$	69,124	$	55,581
Basic
Distributed earnings to common shareholders		$	26,234	$	25,628	$	24,912
Undistributed earnings to common shareholders		39,409		69,124		55,581
Total common shareholders earnings, basic		$	65,643	$	94,752	$	80,493
Diluted
Distributed earnings to common shareholders		$	26,234	$	25,628	$	24,912
Undistributed earnings to common shareholders		39,409		69,124		55,581
Total common shareholders earnings		65,643		94,752		80,493
Add back:
Undistributed earnings reallocated from unvested restricted stock awards		—		2		2
Total common shareholders earnings, diluted		$	65,643	$	94,754	$	80,495
Weighted average common shares outstanding, basic		22,115,869		22,341,498		22,481,389
Options		8,533		54,200		65,964
Weighted average common shares outstanding, diluted		22,124,402		22,395,698		22,547,353
Basic earnings per common share		$	2.97	$	4.24	$	3.58
Diluted earnings per common share		2.97		4.23		3.57

Antidilutive stock options(1)		302,020		265,831		65,033

(1)The diluted earnings per common share computation excludes antidilutive stock options because the exercise prices of these stock options exceeded the average market prices of the Company's common shares for those respective periods.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY—(UNAUDITED) (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Stockholders' Equity [Abstract]
Common dividend declared, per share (in dollars per share)	$ 1.20	$ 1.16	$ 1.12

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 2.00	$ 2.00
Preferred stock, shares authorized (in shares)	4,000,000	4,000,000
Preferred stock, shares issued (in shares)	115,000	115,000
Preferred stock, shares outstanding (in shares)	115,000	115,000
Preferred stock, liquidation price (in dollars per share)	$ 1,000	$ 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)	21,551,402	22,214,913
Common stock, shares outstanding (in shares)	21,551,402	22,214,913

PREMISES, EQUIPMENT AND LEASES - Projected Minimum Rental Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
2024	$ 2,025
2025	1,322
2026	1,197
2027	1,101
2028	1,074
Thereafter	3,976
Total future minimum lease payments	10,695
Less imputed interest	(1,360)
Total operating lease liabilities	$ 9,335	$ 8,900

SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	May 03, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years
Total unrecognized compensation	$ 0.7
Total unrecognized compensation (in years)	2 years 9 months 18 days
Contractual term	10 years
Granted (in dollars per shares)	$ 4.92
Aggregate intrinsic value of options outstanding	$ 0.6
Aggregate intrinsic value of options exercisable	0.6
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost that has been charged against income	2.5	$ 2.2	$ 1.9
Total unrecognized compensation	$ 7.8
Total unrecognized compensation (in years)	3 years 1 month 28 days
Fair value of vested shares	$ 2.1	$ 2.4	$ 2.1
2019 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)				1,000,000

FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2023

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 period presented 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. All of our nonaccrual loans are considered nonperforming and are reviewed individually for the amount of impairment, if any. We measure collateral dependent 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. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between comparable sales and income data available. 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 (Level 2).

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, 2023 and December 31, 2022, are summarized below:


	December 31, 2023
(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	$	1,097	$	1,097	$	—	$	—
U.S. government sponsored entities and U.S. agency securities	72,572		—		72,572		—
Mortgage-backed securities - agency	574,500		—		574,500		—
Mortgage-backed securities - non-agency	83,529		—		83,529		—
State and municipal securities	57,460		—		57,460		—
Collateralized loan obligations	27,565		—		27,565		—
Corporate securities	99,172		—		99,172		—
Equity securities	4,501		4,501		—		—
Loans held for sale	3,811		—		3,811		—
Derivative assets	372		—		372		—

Total	$	924,579	$	5,598	$	918,981	$	—
Liabilities
Derivative liabilities	$	8,836	$	—	$	8,836	$	—

Total	$	8,836	$	—	$	8,836	$	—

Assets measured at fair value on a non-recurring basis:


Nonperforming loans	4,633		—		3,964		669
Other real estate owned	9,112		—		9,112		—


	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
Mortgage 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		—

There were no assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2023 and 2022.

The following table presents losses recognized on assets measured on a nonrecurring basis for the years ended December 31, 2023, 2022 and 2021:


	Years Ended December 31,
(dollars in thousands)		2023		2022		2021
Commercial mortgage servicing rights		$	—	$	1,263	$	7,532
Loan servicing rights held for sale		—		3,250		222
Nonperforming loans		19,421		8,892		14,468
Other real estate owned		—		4,276		454

Total losses on assets measured on a nonrecurring basis		$	19,421	$	17,681	$	22,676

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, 2023 and December 31, 2022:

(dollars in thousands)

Fair value

Valuation
technique

Unobservable
input / assumptions

Range (weighted average)(1)

December 31, 2023

Nonperforming loans

669

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

24.38% - 100.00% (27.46%)

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%)

(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 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, 2023 and December 31, 2022:


	December 31, 2023						December 31, 2022
(dollars in thousands)	Aggregate fair value		Difference		Contractual principal		Aggregate fair value		Difference		Contractual principal

Residential loans held for sale	$	3,811	$	203	$	3,608	$	1,286	$	42	$	1,244

The following table presents the amount of gains (losses) from fair value changes included in income before income taxes for financial assets carried at fair value for the years ended December 31, 2023, 2022 and 2021 :


	Years Ended December 31,
(dollars in thousands)		2023		2022		2021
Commercial loans held for sale		$	—	$	—	$	(67)
Residential loans held for sale		163		(425)		(148)
Total loans held for sale		$	163	$	(425)	$	(215)

The carrying values and estimated fair value of certain financial instruments not carried at fair value at December 31, 2023 and December 31, 2022 were as follows:


	December 31, 2023
(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	$	134,212	$	134,212	$	134,212	$	—	$	—
Federal funds sold	849		849		849		—		—

Loans	6,131,079		6,129,244		—		—		6,129,244
Accrued interest receivable	24,934		24,934		—		24,934		—

Liabilities
Deposits	$	6,309,529	$	6,294,979	$	—	$	6,294,979	$	—
Short-term borrowings	34,865		34,865		25,000		9,865		—
FHLB and other borrowings	476,000		475,240		—		475,240		—
Subordinated debt	93,546		90,253		—		90,253		—
Trust preferred debentures	50,616		51,626		—		51,626		—


	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	$	153,345	$	153,345	$	153,345	$	—	$	—
Federal funds sold	7,286		7,286		7,286		—		—

Loans	6,306,467		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		—

The methods utilized to measure fair value of financial instruments at December 31, 2023 and December 31, 2022 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

CONSOLIDATED STATEMENTS OF CASH FLOWS—(UNAUDITED) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net income	$ 75,460	$ 99,025	$ 81,317
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	21,132	20,126	3,393
Depreciation on premises and equipment	4,778	4,842	5,506
Amortization of intangible assets	4,758	5,410	5,855
Amortization of operating lease right-of-use asset	1,635	1,831	1,742
Amortization of loan servicing rights	1,550	2,294	3,242
Share-based compensation expense	2,489	2,211	1,938
Increase in cash surrender value of life insurance	(4,439)	(3,320)	(3,451)
Gain on proceeds from company-owned life insurance	0	(264)	(1,045)
Investment securities (accretion) amortization, net	(2,414)	2,311	4,196
Gain on termination of hedged interest rate swaps	0	(17,531)	(2,159)
Loss (gain) on sales of investment securities, net	9,372	230	(537)
Gain on repurchase of subordinated debt	(676)	0	0
(Loss) gain on sales of other real estate owned	(819)	118	(473)
Impairment on other real estate owned	0	4,277	454
Origination of loans held for sale	(58,953)	(134,612)	(504,801)
Proceeds from sales of loans held for sale	98,851	269,958	739,954
Gain on sale of loans held for sale	(2,395)	(844)	(4,952)
Impairment on commercial mortgage servicing rights	0	1,263	7,532
Loss on mortgage servicing rights held for sale	0	3,250	222
Net change in operating assets and liabilities:
Accrued interest receivable	(4,621)	(807)	4,075
Other assets	(18,731)	876	(31,974)
Accrued expenses and other liabilities	27,661	(13,579)	24,404
Net cash provided by operating activities	154,638	247,065	334,438
Cash flows from investing activities:
Purchases of investment securities available for sale	(412,799)	(192,349)	(469,789)
Proceeds from sales of investment securities available for sale	191,733	136,403	14,777
Maturities and payments on investment securities available for sale	74,531	85,077	208,377
Purchases of equity securities	(286)	(511)	(260)
Proceeds from sales of equity securities	5,148	0	0
Net decrease (increase) in loans	112,496	(1,177,598)	(258,401)
Purchases of premises and equipment	(8,731)	(3,470)	(2,718)
Proceeds from sale of premises and equipment	104	175	647
Purchases of nonmarketable equity securities	(239,597)	(24,787)	0
Proceeds from redemptions of nonmarketable equity securities	242,377	14,927	20,255
Proceeds from sales of other real estate owned	7,547	1,453	9,210
(Purchases of) proceeds from company-owned life insurance, net	(48,603)	1,518	2,122
Net cash acquired (paid) in acquisitions	0	60,275	(2,715)
Net cash used in investing activities	(76,080)	(1,098,887)	(478,495)
Cash flows from financing activities:
Net (decrease) increase in deposits	(55,123)	174,210	1,009,632
Net (decrease) increase in short-term borrowings	(7,446)	(34,492)	7,846
Proceeds from FHLB borrowings	23,288,000	3,540,000	500,000
Payments made on FHLB borrowings and other borrowings	(23,272,000)	(3,390,171)	(977,536)
FHLB advances prepayment fees	0	0	8,536
Payments made on subordinated debt	(5,845)	(40,000)	(31,075)
Proceeds from issuance of preferred stock	0	110,548	0
Cash dividends paid on preferred stock	(8,913)	(3,169)	0
Cash dividends paid on common stock	(26,573)	(25,923)	(25,172)
Common stock repurchased	(17,898)	(1,109)	(11,692)
Proceeds from issuance of common stock under employee benefit plans	1,670	2,188	2,249
Net cash (used in) provided by financing activities	(104,128)	332,082	482,788
Net (decrease) increase in cash and cash equivalents	(25,570)	(519,740)	338,731
Cash and cash equivalents:
Beginning of period	160,631	680,371	341,640
End of period	$ 135,061	$ 160,631	$ 680,371

INVESTMENT SECURITIES - Narrative (Details) $ in Millions	Dec. 31, 2023 USD ($) security	Dec. 31, 2022 USD ($)
Investments, Debt and Equity Securities [Abstract]
Amounts pledged for public deposits \| $	$ 320.5	$ 440.6
Number of securities in unrealized loss position (in security) \| security	262
Aggregate depreciation percentage	12.27%

LOAN SERVICING RIGHTS

12 Months Ended

Dec. 31, 2023

Transfers and Servicing [Abstract]

LOAN SERVICING RIGHTS

A summary of loan servicing rights at December 31, 2023 and December 31, 2022 is as follows:


	December 31, 2023				December 31, 2022
(dollars in thousands)	Serviced Loans		Carrying Value		Serviced Loans		Carrying Value
Commercial FHA	$	2,084,961	$	19,273	$	—	$	—
SBA	42,685		549		46,081		656
Residential	225,067		431		255,298		549
Commercial FHA held for sale	—		—		2,255,617		20,745
Total	$	2,352,713	$	20,253	$	2,556,996	$	21,950

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. At June 30, 2023, the Company abandoned its plans to sell this servicing asset and removed this asset from held for sale at lower of cost or fair value with no gain or loss recognized.

The fair value of commercial FHA loan servicing rights is determined using key assumptions, representing both general economic and other published information, including the assumed earnings rates related to escrow and replacement reserves, and the weighted average characteristics of the commercial portfolio, including the prepayment rate and discount rate. The prepayment rate 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 7.23% and 8.12% at December 31, 2023.

Changes in our commercial FHA loan servicing rights for the years ended December 31, 2023 2022 and 2021are summarized as follows:


	Years Ended December 31,
(dollars in thousands)		2023		2022		2021
Loan servicing rights:
Balance, beginning of period		$	—	$	27,386	$	38,322

Servicing rights transferred from (to) held for sale		20,473		(23,995)		—
Amortization		(1,200)		(1,907)		(2,965)
Refinancing fee received from third party		—		(221)		(439)
Permanent impairment		—		(1,263)		(7,532)
Balance, end of period		$	19,273	$	—	$	27,386






Fair value:
At beginning of period		$	—	$	28,368	$	38,322
At end of period		32,469		—		28,368

- 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
-Topic 860
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Subparagraph (b)(2)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 860
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

FHLB ADVANCES AND OTHER BORROWINGS - Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract]
2024	$ 286,000
2025	40,000
2026	35,000
2027	0
2028	115,000
Advance from Federal Home Loan Bank, Total	$ 476,000	$ 460,000

COMMITMENTS, CONTINGENCIES AND CREDIT RISK

12 Months Ended

Dec. 31, 2023

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, 2023 and December 31, 2022 were as follows:


(dollars in thousands)	December 31, 2023		December 31, 2022
Commitments to extend credit	$	855,489	$	1,276,263
Financial guarantees – standby letters of credit	22,745		23,748

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 2023 and years prior, borrower default expectations, historical investor repurchase demand and appeals success rates, and estimated loss severity. Loans repurchased from investors are initially recorded at fair value, which becomes the Company’s new accounting basis. Any difference between the loan’s fair value and the outstanding principal amount is charged or credited to the mortgage repurchase liability, as appropriate. Subsequent to repurchase, such loans are carried in loans receivable. There were no losses as a result of make-whole requests and loan repurchases for the years ended December 31, 2023, 2022 and 2021. The liability for unresolved repurchase demands totaled $0.1 million and $0.2 million at December 31, 2023 and December 31, 2022.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

The accompanying consolidated financial statements of the Company have been prepared in accordance with 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 2022 amounts have been made to conform to the 2023 presentation but do not have an effect on net income or shareholders’ equity.

Subsequent Events

Management has evaluated subsequent events for recognition and disclosure through February 23, 2024, 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.

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, 2023, 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.

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.

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, an allowance for credit losses is recorded. Any impairment that has not been recorded through an allowance for credit losses is recorded 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 noninterest income.

Nonmarketable Equity Securities

Nonmarketable equity securities include the Bank’s required investments in the stock of the FHLB and the 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. 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 interest 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 $20.7 million and $17.0 million at December 31, 2023 and 2022, 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.

PCD Loans. In the past 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 and loans past due 90 days or more and still accruing interest.

Allowance for Credit Losses on Loans

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.

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.

The 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.

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. 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, the likelihood that loan will stop performing or default, (ii) loss given default, the expected loss rate for loans in default, (iii) assumed prepayment speed, the likelihood that a loan will prepay or pay-off prior to maturity, and (iv) exposure at default, the estimated outstanding principal balance of the loans upon default, including the expected funding of unfunded commitments outstanding as of the measurement date.

Expected credit losses are calculated as the product of probability of default (adjusted for prepayment), loss given default and exposure at default. 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) Gross Domestic Product, (ii) Consumer Price Index, (iii) selected market interest rates including U.S. Treasury rates, (iv) commercial and residential property prices and unemployment rates in Illinois and the U.S. as a whole, and (v) Retail Sales for the State of Illinois.

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 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.

Loans Held for Sale

Loans held for sale consist of residential mortgage loans originated with the intent to sell. Prior to 2023, loans held for sale may have also included 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 noninterest income 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 20 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 for premises range from 10 to 40 years and for equipment range from 3 to 10 years. 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

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.

Annually, the Company performs an impairment test of goodwill as of August 31 of each year. During the current year, management performed quarterly qualitative assessments and an annual qualitative impairment test, as a result of the economic uncertainty and increased market volatility resulting from the rising interest rate environment. The Company's annual impairment test of goodwill and other intangible assets did not identify any impairment. Additionally, the Company determined that there were no triggering events and as a result no evidence of impairment between the annual impairment test and December 31, 2023.

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. 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 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. 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 residential mortgages, commercial FHA 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 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 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 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.

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.

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.

Accounting Guidance Adopted in 2023

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 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 adopted this guidance on January 1, 2023 and elected to apply on a prospective basis. The adoption of this accounting pronouncement did not have an impact on the consolidated financial statements aside from additional and revised disclosures.

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 amendments in this ASU are effective March 12, 2020 through December 31, 2024. The Company believes the adoption of this guidance will not have a material impact on the consolidated financial statements.

Accounting Guidance Issued But Not Yet Adopted

FASB ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method – In March 2023, the FASB issued ASU No. 2023-02, which allows for reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the type of program the tax credits are related to. The ASU is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted for all entities. The Company b

PREMISES, EQUIPMENT AND LEASES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Depreciation on premises and equipment	$ 4,778	$ 4,842	$ 5,506
Renewal term of lease (in years)	10 years
Operating lease right-of-use asset	$ 7,700	$ 7,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Premises and equipment, net	Premises and equipment, net
Operating lease liabilities	$ 9,335	$ 8,900
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	$ 1,400	$ 1,500	$ 1,400
Minimum
Property, Plant and Equipment [Line Items]
Remaining lease terms	2 months
Maximum
Property, Plant and Equipment [Line Items]
Remaining lease terms	14 years

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Assets
Other assets	$ 182,992	$ 164,609
Total assets	7,866,868	7,855,501	$ 7,443,805
Liabilities:
Subordinated debt	93,546	99,772
Trust preferred debentures	50,616	49,975
Total liabilities	7,075,015	7,096,927
Shareholders’ equity	791,853	758,574	$ 663,837	$ 621,391
Total liabilities and shareholders’ equity	7,866,868	7,855,501
Midland States Bancorp, Inc.
Assets
Cash	7,763	2,721
Other assets	8,010	8,468
Total assets	938,554	911,318
Liabilities:
Subordinated debt	93,546	99,772
Trust preferred debentures	50,616	49,975
Accrued interest payable and other liabilities	2,539	2,997
Total liabilities	146,701	152,744
Shareholders’ equity	791,853	758,574
Total liabilities and shareholders’ equity	938,554	911,318
Midland States Bancorp, Inc. \| Banking Subsidiaries
Assets
Investment in subsidiaries	892,781	860,129
Midland States Bancorp, Inc. \| Related Party
Assets
Note receivable due from bank subsidiary	$ 30,000	$ 40,000

INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Assets:
Allowance for credit losses on loans	$ 18,496	$ 16,484
Deferred compensation	2,108	2,238
Loans	1,069	1,379
Tax credits	621	861
Unrealized loss on securities	26,022	28,404
Unrealized loss on derivatives	2,280	2,700
Net operating losses	8,090	8,922
Operating lease liabilities	2,521	2,415
Other, net	2,842	4,837
Deferred tax assets	64,049	68,240
Valuation allowance	(244)	(176)
Deferred tax assets, net of valuation allowance	63,805	68,064
Liabilities:
Premises and equipment	786	573
Mortgage servicing rights	3,870	4,217
Fair value adjustment on trust preferred debentures	3,853	4,025
Deferred loan costs, net of fees	2,410	3,006
Intangible assets	3,577	4,458
Leased equipment	23,824	24,346
Operating lease right-of-use assets	2,072	1,890
Other, net	1,202	3,064
Deferred tax liabilities	41,594	45,579
Deferred tax assets, net	$ 22,211	$ 22,485

RETIREMENT PLANS - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Retirement Benefits [Abstract]
Service cost	$ 0	$ 0
Interest cost	$ 635	$ 445
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	$ (511)	$ (828)
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	$ 0	$ 14
Net periodic benefit cost	$ 124	$ (369)

DEPOSITS

12 Months Ended

Dec. 31, 2023

Deposits [Abstract]

DEPOSITS

The following table summarizes the classification of deposits as of December 31, 2023 and December 31, 2022:


(dollars in thousands)	December 31, 2023		December 31, 2022
Noninterest-bearing demand	$	1,145,395	$	1,362,158
Interest-bearing:
Checking	2,511,840		2,494,073
Money market	1,135,629		1,184,101
Savings	559,267		661,932
Time	957,398		662,388
Total deposits	$	6,309,529	$	6,364,652

Included in time deposits are time certificates of $250,000 or more of $179.2 million and $118.6 million as of December 31, 2023 and December 31, 2022, respectively.

As of December 31, 2023, the scheduled maturities of time deposits were as follows:


(dollars in thousands)	Amount
Year Ending December 31,
2024	$	806,156
2025	102,413
2026	38,566
2027	7,026
2028	3,237

Total	$	957,398

CAPITAL REQUIREMENTS

12 Months Ended

Dec. 31, 2023

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, 2023, 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, 2023 and 2022, 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, 2023
Total risk-based capital ratio
Midland States Bancorp, Inc.	$	923,101	13.20	%	$	734,070	10.50	%	N/A		N/A
Midland States Bank	865,910		12.40		733,312		10.50		$	698,392	10.00%
Tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	762,508		10.91		594,247		8.50		N/A		N/A
Midland States Bank	798,862		11.44		593,633		8.50		558,714		8.00
Common equity tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	587,009		8.40		489,380		7.00		N/A		N/A
Midland States Bank	798,863		11.44		488,874		7.00		453,955		6.50
Tier 1 leverage ratio
Midland States Bancorp, Inc.	762,508		9.71		314,228		4.00		N/A		N/A
Midland States Bank	798,863		10.18		313,868		4.00		392,335		5.00

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

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

RETIREMENT PLANS - Obligations and Plan Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Retirement Benefits [Abstract]
Projected benefit obligation	$ 13,353	$ 13,016
Accumulated benefit obligation	13,353	13,016
Fair value of plan assets	$ 12,768	$ 12,765

GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
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

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
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-Name Accounting Standards Codification
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-Paragraph 24
-Publisher FASB
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
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-Name Accounting Standards Codification
-Section 50
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 350
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 350
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

CAPITAL REQUIREMENTS - Actual and Required Capital Amounts and Ratios (Details) $ in Thousands	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Capital requirements and restrictions on dividends
Total Capital (to Risk Weighted Assets): Actual Amount	$ 923,101	$ 891,320
Total Capital (to Risk Weighted Assets): Actual Ratio	0.1320	0.1238
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 734,070	$ 755,859
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	$ 587,009	$ 559,255
Common Equity Tier 1 capital (to risk-weighted assets): Actual Ratio	8.40%	7.77%
Common Equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Amount	$ 489,380	$ 503,906
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	$ 762,508	$ 734,754
Tier I Capital (to Risk Weighted Assets): Actual Ratio	0.1091	0.1021
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 594,247	$ 611,886
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	$ 762,508	$ 734,754
Tier I Capital (to Average Assets): Actual Ratio	0.0971	0.0943
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Amount	$ 314,228	$ 311,715
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	$ 865,910	$ 827,689
Total Capital (to Risk Weighted Assets): Actual Ratio	0.1240	0.1151
Total Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 733,312	$ 755,316
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	$ 698,392	$ 719,349
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	$ 798,863	$ 770,566
Common Equity Tier 1 capital (to risk-weighted assets): Actual Ratio	11.44%	10.71%
Common Equity Tier 1 capital (to risk-weighted assets): Minimum Required for adequate capital Amount	$ 488,874	$ 503,544
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	$ 453,955	$ 467,577
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	$ 798,862	$ 770,566
Tier I Capital (to Risk Weighted Assets): Actual Ratio	0.1144	0.1071
Tier I Capital (to Risk Weighted Assets): Minimum Required For Adequate Capital Purposes Amount	$ 593,633	$ 611,447
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	$ 558,714	$ 575,479
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	$ 798,863	$ 770,566
Tier I Capital (to Average Assets): Actual Ratio	0.1018	0.0990
Tier I Capital (to Average Assets): Minimum Required For Adequate Capital Purposes Amount	$ 313,868	$ 311,299
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	$ 392,335	$ 389,123
Tier I Capital (to Average Assets): Required to be Well Capitalized Ratio Under Prompt Corrective Action Requirements Ratio	0.0500	0.0500

LOANS - Summary of Loans and Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Summary of loans
Loans	$ 6,131,079	$ 6,306,467
Net deferred loan fees	3,800	4,400
Unearned income	66,400	62,600
Loans held for sale	3,811	1,286
Proceeds from sales of loans held for sale	98,851	269,958	$ 739,954
Commercial Loan Portfolio
Summary of loans
Loans	4,341,968	4,268,615
Lease Loan Portfolio
Summary of loans
Loans	473,350	491,744
Consumer Loans and Commercial Leases
Summary of loans
Proceeds from sales of loans held for sale	98,900	270,000
Commercial \| Commercial Loan Portfolio
Summary of loans
Loans	825,938	786,877
Commercial other \| Commercial Loan Portfolio
Summary of loans
Loans	656,592	727,697
Commercial real estate non-owner occupied \| Commercial Loan Portfolio
Summary of loans
Loans	1,622,668	1,591,399
Commercial real estate owner occupied \| Commercial Loan Portfolio
Summary of loans
Loans	436,857	496,786
Multi-family \| Commercial Loan Portfolio
Summary of loans
Loans	279,904	277,889
Farmland \| Commercial Loan Portfolio
Summary of loans
Loans	67,416	67,085
Construction and land development \| Commercial Loan Portfolio
Summary of loans
Loans	452,593	320,882
Residential first lien \| Residential Loan Portfolio
Summary of loans
Loans	317,388	304,243
Other residential \| Residential Loan Portfolio
Summary of loans
Loans	63,195	61,851
Consumer \| Consumer Loan Portfolio
Summary of loans
Loans	107,743	105,880
Consumer other \| Consumer Loan Portfolio
Summary of loans
Loans	$ 827,435	1,074,134
Commercial FHA Warehouse Lines \| Commercial Loan Portfolio
Summary of loans
Loans		$ 25,000

RETIREMENT PLANS

12 Months Ended

Dec. 31, 2023

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. 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 $1.8 million, $1.6 million and $1.2 million for the years ended December 31, 2023, 2022, and 2021, respectively. There were no employer discretionary profit sharing contributions made to the 401(k) plan in 2023, 2022 and 2021.

Deferred Compensation Arrangements

Certain executive officers participate in a nonqualified deferred compensation arrangement. 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.


(dollars in thousands)	2023		2022		2021
Beginning balance, trust asset	$	3,294	$	3,714	$	3,657
Contributions	255		446		207
Gain (loss) on trust assets	427		(474)		359
Distributions	(396)		(392)		(509)
Ending balance, trust asset	$	3,580	$	3,294	$	3,714

Beginning balance, deferred compensation liability	$	3,294	$	3,714	$	3,657
Employee deferrals	255		446		207
Expense on deferred compensation liability	427		(474)		359
Distributions	(396)		(392)		(509)
Ending balance, deferred compensation liability	$	3,580	$	3,294	$	3,714

The following table summarizes the activity in the liability balance of the director nonqualified deferred compensation arrangement for the years ended December 31, 2023, 2022, and 2021:


(dollars in thousands)	2023		2022		2021
Beginning balance, deferred compensation liability	$	6,137	$	5,372	$	4,560
Deferred compensation	396		532		606
Expense on deferred compensation liability	323		296		251
Distributions	(803)		(63)		(45)
Ending balance, deferred compensation liability	$	6,053	$	6,137	$	5,372

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. On June 30, 2023, we terminated the plan and notified the IRS, seeking a final determination letter. We expect to receive the final determination letter and begin distributing assets to plan participants in late 2024.

The following table details the components of the net periodic benefit cost for the years ended December 31, 2023 and 2022:


(dollars in thousands)	2023		2022
Service cost	$	—	$	—
Interest cost	635		445
Expected return on plan assets	(511)		(828)
Amortization of transition obligation	—		14
Net periodic benefit cost	$	124	$	(369)

Assumptions used to determine net periodic benefit cost:


	2023		2022
Discount rate	5.05	%	2.70	%
Expected long-term return on plan assets	4.75	%	5.50	%
Rate of compensation increase	N/A		N/A

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, 2023		December 31, 2022
Projected benefit obligation	$	13,353	$	13,016
Accumulated benefit obligation	13,353		13,016
Fair value of plan assets	12,768		12,765

The minimum required contribution for 2024 is expected to be zero.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 17
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480482/715-20-55-17

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Topic 715
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
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-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 60
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-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480266/715-60-50-3

+ Details

LOANS - Narrative (Details) $ in Millions	12 Months Ended
LOANS - Narrative (Details) $ in Millions	Dec. 31, 2023 USD ($) loan region
Troubled debt restructuring
Principal balances \| $	$ 2.4
Number of main regions \| region	4
Restructured Loan
Troubled debt restructuring
Number of restructured loans	11
Restructured Loan \| Term extension
Troubled debt restructuring
Number of restructured loans	9
Restructured Loan \| Interest rate reduction and term extension
Troubled debt restructuring
Number of restructured loans	2
Restructured Lease
Troubled debt restructuring
Number of restructured loans	1

FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying values and fair value (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Assets
Accrued interest receivable	$ 24,934	$ 20,313
Liabilities
Trust preferred debentures	50,616	49,975
Level 1
Assets
Cash and due from banks	134,212	153,345
Federal funds sold	849	7,286
Loans	0	0
Accrued interest receivable	0	0
Liabilities
Deposits	0	0
Short-term borrowings	25,000	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	0	0
Accrued interest receivable	24,934	20,313
Liabilities
Deposits	6,294,979	6,344,534
Short-term borrowings	9,865	42,311
FHLB and other borrowings	475,240	457,998
Subordinated debt	90,253	95,301
Trust preferred debentures	51,626	54,668
Level 3
Assets
Cash and due from banks	0	0
Federal funds sold	0	0
Loans	6,129,244	6,121,026
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	134,212	153,345
Federal funds sold	849	7,286
Loans	6,131,079	6,306,467
Accrued interest receivable	24,934	20,313
Liabilities
Deposits	6,309,529	6,364,652
Short-term borrowings	34,865	42,311
FHLB and other borrowings	476,000	460,000
Subordinated debt	93,546	99,772
Trust preferred debentures	50,616	49,975
Fair value
Assets
Cash and due from banks	134,212	153,345
Federal funds sold	849	7,286
Loans	6,129,244	6,121,026
Accrued interest receivable	24,934	20,313
Liabilities
Deposits	6,294,979	6,344,534
Short-term borrowings	34,865	42,311
FHLB and other borrowings	475,240	457,998
Subordinated debt	90,253	95,301
Trust preferred debentures	$ 51,626	$ 54,668

GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

The carrying amount of goodwill by segment at December 31, 2023 and December 31, 2022 is summarized as follows:


(dollars in thousands)	2023		2022
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, 2023 and December 31, 2022 are summarized as follows:


	December 31, 2023						December 31, 2022
(dollars in thousands)	Gross carrying amount		Accumulated amortization		Total		Gross carrying amount		Accumulated amortization		Total
Core deposit intangibles	$	58,914	$	(48,287)	$	10,627	$	58,913	$	(44,723)	$	14,190
Customer relationship intangibles	15,918		(10,437)		5,481		15,919		(9,243)		6,676
Total intangible assets	$	74,832	$	(58,724)	$	16,108	$	74,832	$	(53,966)	$	20,866

Amortization of intangible assets was $4.8 million, $5.4 million and $5.9 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Estimated amortization expense for future years is as follows:


(dollars in thousands)	Amount
Year ending December 31,
2024	$	4,008
2025	3,224
2026	2,672
2027	2,101
2028	1,582
Thereafter	2,521
Total	$	16,108

DERIVATIVE INSTRUMENTS - Cash Flow Hedges (Details) - Cash Flow Hedge - Receive Fixed, Pay Variable Interest Rate Swaps - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Derivative disclosures
Notational amount, asset	$ 400,000	$ 200,000
Fair value (loss included in other liabilities) gain included in other assets	(8,443)	(9,999)
Tax effected amount included in accumulated other comprehensive (loss) income	$ (6,164)	$ (7,300)
Average remaining life	2 years 8 months 1 day	3 years 4 months 13 days
Long
Derivative disclosures
Weighted average rate	6.55%	7.23%
Short
Derivative disclosures
Weighted average rate	5.41%	5.48%

LOAN SERVICING RIGHTS (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023 and December 31, 2022 is as follows:


	December 31, 2023				December 31, 2022
(dollars in thousands)	Serviced Loans		Carrying Value		Serviced Loans		Carrying Value
Commercial FHA	$	2,084,961	$	19,273	$	—	$	—
SBA	42,685		549		46,081		656
Residential	225,067		431		255,298		549
Commercial FHA held for sale	—		—		2,255,617		20,745
Total	$	2,352,713	$	20,253	$	2,556,996	$	21,950

Changes in our commercial FHA loan servicing rights for the years ended December 31, 2023 2022 and 2021are summarized as follows:


	Years Ended December 31,
(dollars in thousands)		2023		2022		2021
Loan servicing rights:
Balance, beginning of period		$	—	$	27,386	$	38,322

Servicing rights transferred from (to) held for sale		20,473		(23,995)		—
Amortization		(1,200)		(1,907)		(2,965)
Refinancing fee received from third party		—		(221)		(439)
Permanent impairment		—		(1,263)		(7,532)
Balance, end of period		$	19,273	$	—	$	27,386






Fair value:
At beginning of period		$	—	$	28,368	$	38,322
At end of period		32,469		—		28,368

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME—(UNAUDITED) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 75,460	$ 99,025	$ 81,317
Investment securities available for sale:
Unrealized losses that occurred during the period	(1,280)	(106,927)	(12,553)
Recapture of credit loss expense	0	(221)	(145)
Reclassification adjustment for realized net losses (gains) on sales of investment securities included in net income	9,372	230	(537)
Income tax effect	(2,184)	28,876	3,640
Change in investment securities available for sale, net of tax	5,908	(78,042)	(9,595)
Cash flow hedges:
Net unrealized derivative gains on cash flow hedges	1,556	2,438	6,851
Reclassification adjustment for gains realized in net income	0	(17,531)	(2,159)
Income tax effect	(420)	4,101	(1,291)
Change in cash flow hedges, net of tax	1,136	(10,992)	3,401
Other comprehensive income (loss), net of tax	7,044	(89,034)	(6,194)
Total comprehensive income	$ 82,504	$ 9,991	$ 75,123

CONSOLIDATED STATEMENTS OF INCOME—(UNAUDITED) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Interest income:
Loans, including fees: Taxable	$ 365,529	$ 274,617	$ 213,922
Loans, including fees: Tax exempt	1,764	2,082	2,470
Loans held for sale	260	404	1,115
Investment securities:
Taxable	28,653	15,801	13,898
Tax exempt	1,349	2,746	3,336
Nonmarketable equity securities	2,819	2,198	2,348
Federal funds sold and cash investments	3,922	3,907	728
Total interest income	404,296	301,755	237,817
Interest expense:
Deposits	136,947	36,061	10,957
Short-term borrowings	68	104	86
Federal Home Loan Bank advances and other borrowings	20,709	9,335	8,443
Subordinated debt	5,266	7,495	8,705
Trust preferred debentures	5,289	3,025	1,951
Total interest expense	168,279	56,020	30,142
Net interest income	236,017	245,735	207,675
Provision for credit losses:
Provision for credit losses on loans	21,132	18,797	3,950
Provision for credit losses on unfunded commitments	0	1,550	(412)
Recapture of other credit losses	0	(221)	(145)
Total provision for credit losses	21,132	20,126	3,393
Net interest income after provision for credit losses	214,885	225,609	204,282
Noninterest income:
Wealth management revenue	25,572	25,708	26,811
Residential mortgage banking revenue	1,903	1,509	5,526
Service charges on deposit accounts	11,990	10,237	9,242
Interchange revenue	14,302	13,879	14,500
(Loss) gain on sales of investment securities, net	(9,372)	(230)	537
Gain on termination of hedged interest rate swaps	0	17,531	2,159
Impairment on commercial mortgage servicing rights	0	(1,263)	(7,532)
Income on company-owned life insurance	4,439	3,584	4,496
Other income	17,756	8,936	14,160
Total noninterest income	66,590	79,891	69,899
Noninterest expense:
Salaries and employee benefits	93,438	90,305	86,883
Occupancy and equipment	15,986	14,842	14,866
Data processing	26,286	24,350	24,595
FDIC insurance	4,779	3,336	3,346
Professional	7,049	6,907	10,971
Marketing	3,158	3,318	3,239
Communications	1,741	2,382	3,002
Loan expense	4,206	4,586	2,014
Amortization of intangible assets	4,758	5,410	5,855
Other real estate owned	333	5,188	1,277
Loss on mortgage servicing rights held for sale	0	3,250	222
FHLB advances prepayment fees	0	0	8,536
Other expense	12,168	11,788	10,263
Total noninterest expense	173,902	175,662	175,069
Income before income taxes	107,573	129,838	99,112
Income taxes	32,113	30,813	17,795
Net income	75,460	99,025	81,317
Preferred dividends	8,913	3,169	0
Net income available to common shareholders	$ 66,547	$ 95,856	$ 81,317
Per common share data:
Basic earnings per common share (in dollars per share)	$ 2.97	$ 4.24	$ 3.58
Diluted earnings per common share (in dollars per share)	$ 2.97	$ 4.23	$ 3.57
Weighted average common shares outstanding (in shares)	22,115,869	22,341,498	22,481,389
Weighted average diluted common shares outstanding (in shares)	22,124,402	22,395,698	22,547,353

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured and Recorded at Fair Value


	December 31, 2023
(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	$	1,097	$	1,097	$	—	$	—
U.S. government sponsored entities and U.S. agency securities	72,572		—		72,572		—
Mortgage-backed securities - agency	574,500		—		574,500		—
Mortgage-backed securities - non-agency	83,529		—		83,529		—
State and municipal securities	57,460		—		57,460		—
Collateralized loan obligations	27,565		—		27,565		—
Corporate securities	99,172		—		99,172		—
Equity securities	4,501		4,501		—		—
Loans held for sale	3,811		—		3,811		—
Derivative assets	372		—		372		—

Total	$	924,579	$	5,598	$	918,981	$	—
Liabilities
Derivative liabilities	$	8,836	$	—	$	8,836	$	—

Total	$	8,836	$	—	$	8,836	$	—

Assets measured at fair value on a non-recurring basis:


Nonperforming loans	4,633		—		3,964		669
Other real estate owned	9,112		—		9,112		—


	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
Mortgage 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		—

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, 2023, 2022 and 2021:


	Years Ended December 31,
(dollars in thousands)		2023		2022		2021
Commercial mortgage servicing rights		$	—	$	1,263	$	7,532
Loan servicing rights held for sale		—		3,250		222
Nonperforming loans		19,421		8,892		14,468
Other real estate owned		—		4,276		454

Total losses on assets measured on a nonrecurring basis		$	19,421	$	17,681	$	22,676

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, 2023

Nonperforming loans

669

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

24.38% - 100.00% (27.46%)

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%)

(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, 2023						December 31, 2022
(dollars in thousands)	Aggregate fair value		Difference		Contractual principal		Aggregate fair value		Difference		Contractual principal

Residential loans held for sale	$	3,811	$	203	$	3,608	$	1,286	$	42	$	1,244


	Years Ended December 31,
(dollars in thousands)		2023		2022		2021
Commercial loans held for sale		$	—	$	—	$	(67)
Residential loans held for sale		163		(425)		(148)
Total loans held for sale		$	163	$	(425)	$	(215)

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, 2023 and December 31, 2022 were as follows:


	December 31, 2023
(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	$	134,212	$	134,212	$	134,212	$	—	$	—
Federal funds sold	849		849		849		—		—

Loans	6,131,079		6,129,244		—		—		6,129,244
Accrued interest receivable	24,934		24,934		—		24,934		—

Liabilities
Deposits	$	6,309,529	$	6,294,979	$	—	$	6,294,979	$	—
Short-term borrowings	34,865		34,865		25,000		9,865		—
FHLB and other borrowings	476,000		475,240		—		475,240		—
Subordinated debt	93,546		90,253		—		90,253		—
Trust preferred debentures	50,616		51,626		—		51,626		—


	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	$	153,345	$	153,345	$	153,345	$	—	$	—
Federal funds sold	7,286		7,286		7,286		—		—

Loans	6,306,467		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		—

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Assets
Cash and due from banks	$ 134,212	$ 153,345
Federal funds sold	849	7,286
Cash and cash equivalents	135,061	160,631
Investment securities available for sale, at fair value	915,895	768,234
Equity securities, at fair value	4,501	8,626
Loans	6,131,079	6,306,467
Allowance for credit losses on loans	(68,502)	(61,051)
Total loans, net	6,062,577	6,245,416
Loans held for sale	3,811	1,286
Premises and equipment, net	82,814	78,293
Other real estate owned	9,112	6,729
Nonmarketable equity securities	43,421	46,201
Accrued interest receivable	24,934	20,313
Loan servicing rights, at lower of cost or fair value	20,253	1,205
Commercial FHA mortgage loan servicing rights held for sale	0	20,745
Goodwill	161,904	161,904
Other intangible assets, net	16,108	20,866
Company-owned life insurance	203,485	150,443
Other assets	182,992	164,609
Total assets	7,866,868	7,855,501
Deposits:
Noninterest-bearing demand deposits	1,145,395	1,362,158
Interest-bearing deposits	5,164,134	5,002,494
Total deposits	6,309,529	6,364,652
Short-term borrowings	34,865	42,311
Federal Home Loan Bank advances and other borrowings	476,000	460,000
Subordinated debt	93,546	99,772
Trust preferred debentures	50,616	49,975
Accrued interest payable and other liabilities	110,459	80,217
Total liabilities	7,075,015	7,096,927
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, 2023 and 2022, respectively	110,548	110,548
Common stock, $0.01 par value; 40,000,000 shares authorized; 21,551,402 and 22,214,913 shares issued and outstanding at December 31, 2023 and 2022, respectively	216	222
Capital surplus	435,463	449,196
Retained earnings	322,379	282,405
Accumulated other comprehensive loss, net of tax	(76,753)	(83,797)
Total shareholders’ equity	791,853	758,574
Total liabilities and shareholders’ equity	$ 7,866,868	$ 7,855,501

LOANS

12 Months Ended

Dec. 31, 2023

Receivables [Abstract]

LOANS

The following table presents total loans outstanding by portfolio class, as of December 31, 2023 and December 31, 2022:


(dollars in thousands)	December 31, 2023		December 31, 2022
Commercial:
Commercial	$	825,938	$	786,877
Commercial other	656,592		727,697
Commercial real estate:
Commercial real estate non-owner occupied	1,622,668		1,591,399
Commercial real estate owner occupied	436,857		496,786
Multi-family	279,904		277,889
Farmland	67,416		67,085
Construction and land development	452,593		320,882
Total commercial loans	4,341,968		4,268,615
Residential real estate:
Residential first lien	317,388		304,243
Other residential	63,195		61,851
Consumer:
Consumer	107,743		105,880
Consumer other	827,435		1,074,134
Lease financing	473,350		491,744
Total loans	$	6,131,079	$	6,306,467

Total loans include net deferred loan costs of $3.8 million and $4.4 million at December 31, 2023 and December 31, 2022, respectively, and unearned discounts of $66.4 million and $62.6 million within the lease financing portfolio at December 31, 2023 and December 31, 2022, respectively.

At December 31, 2023, the Company had residential real estate loans held for sale totaling $3.8 million, compared to $1.3 million at December 31, 2022. The Company sold loans and leases with proceeds totaling $98.9 million and $270.0 million during the years ended December 31, 2023 and 2022, 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. Commercial FHA warehouse lines of $25.0 million as of December 31, 2022 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 new loans, other additions, repayments and other reductions for the years ended December 31, 2023 and 2022, are summarized as follows:


	Years Ended December 31,
(dollars in thousands)		2023		2022
Beginning balance		$	19,776	$	13,869
New loans and other additions		2,368		9,804
Repayments and other reductions		(1,154)		(3,897)
Ending balance		$	20,990	$	19,776

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, 2023, 2022 and 2021:


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







Changes in allowance for credit losses on loans for the year ended December 31, 2023:
Balance, beginning of period	$	14,639	$	29,290	$	2,435	$	4,301	$	3,599	$	6,787	$	61,051
Provision for credit losses on loans	12,780		(8,067)		3,296		1,385		929		10,809		21,132
Charge-offs	(7,357)		(5,000)		(1,601)		(271)		(1,046)		(5,026)		(20,301)
Recoveries	1,785		4,006		33		138		288		370		6,620
Balance, end of period	$	21,847	$	20,229	$	4,163	$	5,553	$	3,770	$	12,940	$	68,502








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

The Company utilizes a combination of models which measure probability of default and loss given default 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.

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

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


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

Expected Credit Losses

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

with other loans in the pool. The following table presents the amortized cost basis of individually evaluated loans on nonaccrual status as of December 31, 2023 and December 31, 2022:


	December 31, 2023						December 31, 2022
(dollars in thousands)	Nonaccrual with allowance		Nonaccrual with no allowance		Total nonaccrual		Nonaccrual with allowance		Nonaccrual with no allowance		Total nonaccrual
Commercial:
Commercial	$	3,560	$	—	$	3,560	$	1,910	$	1,111	$	3,021
Commercial other	4,941		—		4,941		3,169		—		3,169
Commercial real estate:
Commercial real estate non-owner occupied	1,614		14,098		15,712		1,345		11,899		13,244
Commercial real estate owner occupied	4,276		6,500		10,776		7,118		—		7,118
Multi-family	240		6,015		6,255		154		8,949		9,103
Farmland	1,148		—		1,148		25		—		25
Construction and land development	39		—		39		202		—		202
Total commercial loans	15,818		26,613		42,431		13,923		21,959		35,882
Residential real estate:
Residential first lien	2,583		490		3,073		2,925		572		3,497
Other residential	635		—		635		871		—		871
Consumer:
Consumer	134		—		134		120		—		120

Lease financing	9,097		36		9,133		1,606		—		1,606
Total loans	$	28,267	$	27,139	$	55,406	$	19,445	$	22,531	$	41,976

There was no interest income recognized on nonaccrual loans during the years ended December 31, 2023 and 2022 while the loans were in nonaccrual status. Additional interest income that would have been recorded on nonaccrual loans had they been current in accordance with their original terms was $3.4 million, $2.8 million and $2.7 million for the years ended December 31, 2023, 2022 and 2021, 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, 2023 and December 31, 2022:


	Type of Collateral
(dollars in thousands)	Real Estate		Blanket Lien		Equipment		Total
December 31, 2023
Commercial:
Commercial	$	—	$	—	$	1,972	$	1,972
Commercial other	—		—		1,232		1,232
Commercial real estate:
Non-owner occupied	14,147		—		—		14,147
Owner occupied	9,275		—		—		9,275
Multi-family	5,143		—		—		5,143




Total collateral dependent loans	$	28,565	$	—	$	3,204	$	31,769

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

The aging status of the recorded investment in loans by portfolio as of December 31, 2023 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	$	9,340	$	504	$	—	$	9,844	$	3,560	$	812,534	$	825,938
Commercial other	11,156		5,990		781		17,927		4,941		633,724		656,592
Commercial real estate:
Commercial real estate non-owner occupied	384		—		—		384		15,712		1,606,572		1,622,668
Commercial real estate owner occupied	—		—		—		—		10,776		426,081		436,857
Multi-family	14,506		8,140		—		22,646		6,255		251,003		279,904
Farmland	—		120		—		120		1,148		66,148		67,416
Construction and land development	211		10,593		—		10,804		39		441,750		452,593
Total commercial loans	35,597		25,347		781		61,725		42,431		4,237,812		4,341,968
Residential real estate:
Residential first lien	69		299		161		529		3,073		313,786		317,388
Other residential	100		50		—		150		635		62,410		63,195
Consumer:
Consumer	62		20		—		82		134		107,527		107,743
Consumer other	7,225		4,561		3		11,789		—		815,646		827,435
Lease financing	7,622		1,826		—		9,448		9,133		454,769		473,350
Total loans	$	50,675	$	32,103	$	945	$	83,723	$	55,406	$	5,991,950	$	6,131,079

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

Loan Restructurings

The Company adopted the accounting guidance in ASU No. 2022-02, effective as of January 1, 2023, which eliminated the recognition and measurement of a TDR. Due to the removal of the TDR designation, the Company evaluates all loan restructurings according to the accounting guidance for loan modifications to determine if the restructuring results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulties that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. Therefore, the disclosures related to loan restructurings are for modifications which have a direct impact on cash flows.

The Company may offer various types of concessions when modifying a loan. Commercial and industrial loans modified in a loan restructuring often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested.

Loans modified in a loan restructuring for the Company may have the financial effect of increasing the specific allowance associated with the loan. An allowance for loans that have been modified in a loan restructuring is measured based on the probability of default and loss given default model, the loan's observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates.

Commercial and consumer loans modified in a loan restructuring are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a loan restructuring subsequently default, the Company evaluates the loan for possible further loss. The allowance may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan.

In some cases, the Company will modify a loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession such as an interest rate reduction or principal forgiveness, may be granted. During the year ended December 31, 2023 the Company restructured eleven loans and one lease for borrowers experiencing financial difficulties with principal balances totaling $2.4 million. Nine of the restructured loans were provided a term extension with the other two receiving an interest rate reduction and a term extension. The lease was provided a term extension with an increased interest rate. The Company has not committed to lend any additional amounts to the borrowers that have been granted a loan modification.

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 geographic regions. 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, 2023 and December 31, 2022:


			December 31, 2023
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2023		2022		2021		2020		2019		Prior		Revolving loans		Total
Commercial	Commercial	Acceptable credit quality	$	157,498	$	96,295	$	71,366	$	36,680	$	14,688	$	42,827	$	369,297	$	788,651
		Special mention	3,015		450		4		—		181		43		983		4,676
		Substandard	4,485		13,651		420		342		253		4,961		4,940		29,052
		Substandard – nonaccrual	1,238		—		1,321		25		79		360		536		3,559
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	166,236		110,396		73,111		37,047		15,201		48,191		375,756		825,938

	Commercial other	Acceptable credit quality	139,057		195,726		100,946		59,392		32,848		28,946		90,928		647,843
		Special mention	—		532		399		114		107		4		1,682		2,838
		Substandard	37		220		—		—		—		—		639		896
		Substandard – nonaccrual	1,819		1,918		449		184		361		94		116		4,941
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	74		—		—		—		—		—		—		74
		Subtotal	140,987		198,396		101,794		59,690		33,316		29,044		93,365		656,592

Commercial real estate	Non-owner occupied	Acceptable credit quality	237,215		653,057		309,013		110,743		82,563		124,430		6,328		1,523,349
		Special mention	4,480		—		181		457		—		274		—		5,392
		Substandard	35,811		1,658		—		—		17,835		22,911		—		78,215
		Substandard – nonaccrual	5,573		—		154		999		7,597		1,389		—		15,712
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	283,079		654,715		309,348		112,199		107,995		149,004		6,328		1,622,668

	Owner occupied	Acceptable credit quality	32,972		100,893		113,264		48,415		23,671		77,854		1,803		398,872
		Special mention	5,750		—		129		—		149		177		8		6,213
		Substandard	—		7,716		265		—		705		12,310		—		20,996
		Substandard – nonaccrual	126		9,431		28		171		27		689		304		10,776
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	38,848		118,040		113,686		48,586		24,552		91,030		2,115		436,857

	Multi-family	Acceptable credit quality	4,483		170,519		25,835		28,137		10,185		11,538		254		250,951
		Special mention	—		—		—		—		—		—		—		—
		Substandard	8,140		—		—		—		—		14,558		—		22,698
		Substandard – nonaccrual	1,700		—		899		—		104		3,552		—		6,255
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	14,323		170,519		26,734		28,137		10,289		29,648		254		279,904

	Farmland	Acceptable credit quality	10,104		4,735		13,405		12,255		3,723		18,636		1,439		64,297
		Special mention	—		—		1,451		—		—		96		—		1,547
		Substandard	—		—		133		—		22		269		—		424
		Substandard – nonaccrual	—		—		—		—		—		1,100		48		1,148
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	10,104		4,735		14,989		12,255		3,745		20,101		1,487		67,416

Construction and land development		Acceptable credit quality	65,538		233,660		88,047		—		677		916		29,385		418,223
		Special mention	—		—		—		—		—		40		—		40
		Substandard	—		—		16,594		—		—		—		15,349		31,943
		Substandard – nonaccrual	—		—		—		—		—		39		—		39
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	1,535		432		356		—		—		25		—		2,348
		Subtotal	67,073		234,092		104,997		—		677		1,020		44,734		452,593

Total		Acceptable credit quality	646,867		1,454,885		721,876		295,622		168,355		305,147		499,434		4,092,186
		Special mention	13,245		982		2,164		571		437		634		2,673		20,706
		Substandard	48,473		23,245		17,412		342		18,815		55,009		20,928		184,224
		Substandard – nonaccrual	10,456		11,349		2,851		1,379		8,168		7,223		1,004		42,430
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	1,609		432		356		—		—		25		—		2,422
Total commercial loans			$	720,650	$	1,490,893	$	744,659	$	297,914	$	195,775	$	368,038	$	524,039	$	4,341,968


			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

The following table presents the gross charge-offs by class of loan and year of origination on the commercial loan portfolio for the year ended December 31, 2023:


		Term Loans by Origination Year
(dollars in thousands)		2023		2022		2021		2020		2019		Prior		Revolving Loans		Total










For the year ended December 31, 2023
Commercial	Commercial	$	—	$	—	$	—	$	70	$	126	$	224	$	2,211	$	2,631
	Commercial Other	203		2,412		697		702		292		420		—		4,726
Commercial Real Estate	Non-owner occupied	—		—		—		—		—		2,630		—		2,630
	Owner occupied	—		—		—		—		48		1,510		—		1,558
	Multi-family	—		—		—		—		—		812		—		812

Construction and land development		—		—		—		—		42		1,559		—		1,601
Total gross commercial charge-offs		$	203	$	2,412	$	697	$	772	$	508	$	7,155	$	2,211	$	13,958

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 and loans past due 90 days or more and still accruing interest 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, 2023 and December 31, 2022:


			December 31, 2023
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Residential real estate	Residential first lien	Performing	$	42,550	$	74,613	$	37,009	$	29,628	$	19,647	$	110,703	$	4	$	314,154
		Nonperforming	179		50		335		—		139		2,531		—		3,234
		Subtotal	42,729		74,663		37,344		29,628		19,786		113,234		4		317,388

	Other residential	Performing	3,245		1,113		377		409		836		2,009		54,571		62,560
		Nonperforming	—		9		—		—		—		178		448		635
		Subtotal	3,245		1,122		377		409		836		2,187		55,019		63,195

Consumer	Consumer	Performing	30,748		24,190		31,946		6,116		2,313		10,794		1,502		107,609
		Nonperforming	11		55		6		6		—		56		—		134
		Subtotal	30,759		24,245		31,952		6,122		2,313		10,850		1,502		107,743

	Consumer other	Performing	190,018		392,184		149,791		63,461		23,991		7,987		—		827,432
		Nonperforming	—		—		—		—		—		3		—		3
		Subtotal	190,018		392,184		149,791		63,461		23,991		7,990		—		827,435

Leases financing		Performing	143,334		157,059		74,359		50,174		30,428		8,863		—		464,217
		Nonperforming	1,485		5,043		1,482		317		612		194		—		9,133
		Subtotal	144,819		162,102		75,841		50,491		31,040		9,057		—		473,350

Total		Performing	409,895		649,159		293,482		149,788		77,215		140,356		56,077		1,775,972
		Nonperforming	1,675		5,157		1,823		323		751		2,962		448		13,139
Total other loans			$	411,570	$	654,316	$	295,305	$	150,111	$	77,966	$	143,318	$	56,525	$	1,789,111


			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

The following table presents the gross charge-offs by class of loan and year of origination on the other loan portfolio for the year ended December 31, 2023:


		Term Loans by Origination Year
(dollars in thousands)		2023		2022		2021		2020		2019		Prior		Revolving Loans		Total








For the year ended December 31, 2023
Residential real estate	Residential first lien	$	—	$	—	$	8	$	35	$	108	$	53	$	—	$	204
	Other residential	—		—		—		—		—		10		57		67
Consumer	Consumer	—		49		23		22		37		36		—		167
	Consumer other	46		101		45		19		37		631		—		879
Lease financing		669		2,156		1,172		213		542		274		—		5,026
Total gross other charge-offs		$	715	$	2,306	$	1,248	$	289	$	724	$	1,004	$	57	$	6,343

TRUST PREFERRED DEBENTURES

12 Months Ended

Dec. 31, 2023

TRUST PREFERRED DEBENTURES

TRUST PREFERRED DEBENTURES

The Company formed 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, 2023				At December 31, 2022
(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	SOFR plus 2.85%	1/23/2034	$	2,454	8.52	%	$	2,410	7.26	%
Midland States Preferred Securities Trust	3/26/2004	10,310		10,000	SOFR plus 2.75%	4/23/2034	10,284		8.42	%	10,282		7.07	%
Centrue Statutory Trust II	4/22/2004	10,310		10,000	SOFR plus 2.65%	6/17/2034	8,468		8.32	%	8,358		7.39	%
Love Savings/Heartland Capital Trust III	11/30/2006	20,619		20,000	SOFR plus 1.75%	12/31/2036	15,110		7.42	%	14,870		6.52	%
Love Savings/Heartland Capital Trust IV	6/6/2007	20,619		20,000	SOFR plus 1.47%	9/6/2037	14,300		7.13	%	14,055		6.20	%
Total trust preferred debentures		$	64,951				$	50,616			$	49,975

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.

INVESTMENT SECURITIES - Allowance for Credit Loss and Unrealized Losses and Fair Values (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair value
Less than 12 Months, Fair value	$ 252,732	$ 241,906
Less than 12 Months, Unrealized loss	13,713	15,132
12 Months or more, Fair value	460,879	463,399
12 Months or more, Unrealized loss	86,201	90,258
Total, Fair value	713,611	705,305
Total, Unrealized loss	99,914	105,390
U.S. Treasury securities
Fair value
Less than 12 Months, Fair value		1,839
Less than 12 Months, Unrealized loss		24
12 Months or more, Fair value		59,865
12 Months or more, Unrealized loss		5,172
Total, Fair value		61,704
Total, Unrealized loss		5,196
U.S. government sponsored entities and U.S. agency securities
Fair value
Less than 12 Months, Fair value	42,826	10,288
Less than 12 Months, Unrealized loss	87	40
12 Months or more, Fair value	8,323	23,453
12 Months or more, Unrealized loss	1,678	4,297
Total, Fair value	51,149	33,741
Total, Unrealized loss	1,765	4,337
Mortgage-backed securities - agency
Fair value
Less than 12 Months, Fair value	130,106	152,657
Less than 12 Months, Unrealized loss	7,386	9,736
12 Months or more, Fair value	348,476	273,353
12 Months or more, Unrealized loss	70,558	64,410
Total, Fair value	478,582	426,010
Total, Unrealized loss	77,944	74,146
Mortgage-backed securities - non-agency
Fair value
Less than 12 Months, Fair value	8,852	1,924
Less than 12 Months, Unrealized loss	353	270
12 Months or more, Fair value	19,418	18,830
12 Months or more, Unrealized loss	3,551	3,898
Total, Fair value	28,270	20,754
Total, Unrealized loss	3,904	4,168
State and municipal securities
Fair value
Less than 12 Months, Fair value	51,497	35,603
Less than 12 Months, Unrealized loss	5,750	1,662
12 Months or more, Fair value	0	41,538
12 Months or more, Unrealized loss	0	6,570
Total, Fair value	51,497	77,141
Total, Unrealized loss	5,750	8,232
Collateralized loan obligations
Fair value
Less than 12 Months, Fair value	14,763
Less than 12 Months, Unrealized loss	84
12 Months or more, Fair value	0
12 Months or more, Unrealized loss	0
Total, Fair value	14,763
Total, Unrealized loss	84
Corporate securities
Fair value
Less than 12 Months, Fair value	4,688	39,595
Less than 12 Months, Unrealized loss	53	3,400
12 Months or more, Fair value	84,662	46,360
12 Months or more, Unrealized loss	10,414	5,911
Total, Fair value	89,350	85,955
Total, Unrealized loss	$ 10,467	$ 9,311

EARNINGS PER COMMON SHARE - Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income	$ 75,460	$ 99,025	$ 81,317
Preferred dividends declared	(8,913)	(3,169)	0
Net income available to common shareholders	66,547	95,856	81,317
Common shareholder dividends	(26,234)	(25,628)	(24,912)
Unvested restricted stock award dividends	(339)	(295)	(260)
Undistributed earnings to unvested restricted stock awards	(565)	(809)	(564)
Undistributed earnings to common shareholders	39,409	69,124	55,581
Basic
Distributed earnings to common shareholders	26,234	25,628	24,912
Undistributed earnings to common shareholders	39,409	69,124	55,581
Total common shareholders earnings, basic	65,643	94,752	80,493
Diluted
Distributed earnings to common shareholders	26,234	25,628	24,912
Undistributed earnings to common shareholders	39,409	69,124	55,581
Total common shareholders earnings, basic	65,643	94,752	80,493
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	0	2	2
Total common shareholders earnings, diluted	$ 65,643	$ 94,754	$ 80,495
Weighted average common shares outstanding, basic (in shares)	22,115,869	22,341,498	22,481,389
Options (in shares)	8,533	54,200	65,964
Weighted average common shares outstanding, diluted (in shares)	22,124,402	22,395,698	22,547,353
Basic earnings per common share (in dollars per share)	$ 2.97	$ 4.24	$ 3.58
Diluted earnings per common share (in dollars per share)	$ 2.97	$ 4.23	$ 3.57
Stock option
Add back:
Antidilutive securities excluded from computation of earnings per share (in shares)	302,020	265,831	65,033

RETIREMENT PLANS - Plan Assets and Liabilities (Details) - Deferred compensation arrangement - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Beginning balance, trust asset	$ 3,294	$ 3,714	$ 3,657
Contributions	255	446	207
Gain (loss) on trust assets	427	(474)	359
Distributions	(396)	(392)	(509)
Ending balance, trust asset	3,580	3,294	3,714
Defined Benefit Plan, Deferred Compensation Liability [Roll Forward]
Beginning balance, deferred compensation liability	3,294	3,714	3,657
Employee deferrals	255	446	207
Expense on deferred compensation liability	427	(474)	359
Distributions	(396)	(392)	(509)
Ending balance, deferred compensation liability	3,580	3,294	3,714
Deferred Compensation Arrangement with Individual, Recorded Liability [Roll Forward]
Beginning balance, deferred compensation liability	6,137	5,372	4,560
Deferred compensation	396	532	606
Expense on deferred compensation liability	323	296	251
Distributions	(803)	(63)	(45)
Ending balance, deferred compensation liability	$ 6,053	$ 6,137	$ 5,372

Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2023	Feb. 13, 2024	Jun. 30, 2023
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
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
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 417,808,861
Entity Common Stock, Shares Outstanding (in shares)		21,503,989
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Portions of the Proxy Statement for the Annual Meeting of Shareholders to be held May 6, 2024, to be filed within 120 days after December 31, 2023, 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	2023
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

TRUST PREFERRED DEBENTURES - Summary of Trust Preferred Debentures (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Mar. 26, 2004
TRUST PREFERRED DEBENTURES
Face amount	$ 94,000	$ 100,550
Trust preferred debentures	50,616	49,975
Trust preferred debentures maturing January 23, 2034 \| Grant Park Trust
TRUST PREFERRED DEBENTURES
Face amount	$ 3,093
Shares Issued	3
Trust preferred debentures	$ 2,454	$ 2,410
Interest rate (as a percent)	8.52%	7.26%
Trust preferred debentures maturing January 23, 2034 \| SOFR \| 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	$ 10,284	$ 10,282
Interest rate (as a percent)	8.42%	7.07%
Trust preferred debentures maturing April 23, 2034 \| SOFR \| 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	$ 8,468	$ 8,358
Interest rate (as a percent)	8.32%	7.39%
Trust Preferred Debentures Maturing June 17, 2034 \| SOFR \| 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	$ 15,110	$ 14,870
Interest rate (as a percent)	7.42%	6.52%
Trust preferred debentures maturing December 31, 2036 \| SOFR \| 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	$ 14,300	$ 14,055
Interest rate (as a percent)	7.13%	6.20%
Trust preferred debentures maturing September 6, 2037 \| SOFR \| 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	$ 50,616	$ 49,975

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

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, 2023	Dec. 31, 2022
Notes Receivable [Roll Forward]
Beginning balance	$ 19,776	$ 13,869
New loans and other additions	2,368	9,804
Repayments and other reductions	(1,154)	(3,897)
Ending balance	$ 20,990	$ 19,776

DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments, Fair Value and Notional Amounts

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, 2023 and December 31, 2022:


	Notional amount				Fair value gain
(dollars in thousands)	December 31, 2023		December 31, 2022		December 31, 2023		December 31, 2022
Derivative instruments (included in other assets):
Interest rate lock commitments	$	2,405	$	2,078	$	62	$	49


	Notional amount				Fair value loss
(dollars in thousands)	December 31, 2023		December 31, 2022		December 31, 2023		December 31, 2022
Derivative instruments (included in other liabilities):
Interest rate lock commitments	$	—	$	4,419	$	—	$	15
Forward commitments to sell mortgage-backed securities	5,000		6,669		83		—
Total	$	5,000	$	11,088	$	83	$	15

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, 2023 and December 31, 2022


(dollars in thousands)	December 31, 2023			December 31, 2022
Notional Amount	$	400,000		$	200,000
Fair value loss included in other liabilities	(8,443)			(9,999)
Tax effected amount included in accumulated other comprehensive (loss) income	(6,164)			(7,300)
Average remaining life	2.67			3.37
Weighted average pay rate	6.55		%	7.23		%
Weighted average receive rate	5.41		%	5.48		%

PREMISES, EQUIPMENT AND LEASES - Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Lease right-of-use assets	$ 7,673	$ 7,001
Total	137,542	128,923
Accumulated depreciation	(54,728)	(50,630)
Premises and equipment, net	82,814	78,293
Land
Property, Plant and Equipment [Line Items]
Premises and equipment gross	15,968	16,004
Buildings and improvements
Property, Plant and Equipment [Line Items]
Premises and equipment gross	78,104	71,837
Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 35,797	$ 34,081

GOODWILL AND INTANGIBLE ASSETS - Expected Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 4,008
2025	3,224
2026	2,672
2027	2,101
2028	1,582
Thereafter	2,521
Total	$ 16,108	$ 20,866

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2023

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 December 31, 2023, 2022 and 2021 were as follows:


(dollars in thousands)	Banking		Wealth Management		Other		Total










Year Ended December 31, 2023
Net interest income (expense)	$	244,877	$	(12)	$	(8,848)	$	236,017
Provision for credit losses	21,132		—		—		21,132
Noninterest income	40,830		25,572		188		66,590
Noninterest expense	155,487		20,247		(1,832)		173,902
Income (loss) before income taxes (benefit)	109,088		5,313		(6,828)		107,573
Income taxes (benefit)	32,654		2,309		(2,850)		32,113
Net income (loss)	$	76,434	$	3,004	$	(3,978)	$	75,460
Total assets	$	7,845,023	$	31,437	$	(9,592)	$	7,866,868











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

- 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
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

FAIR VALUE OF FINANCIAL INSTRUMENTS - Quantitative Information (Details) - Non recurring member $ in Thousands	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	$ 4,633	$ 49,423
Loan servicing rights		1,205
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	669	9,539
Loan servicing rights		1,205
Level 3 \| Collateral based measurements \| Nonperforming loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	$ 669
Level 3 \| Collateral based measurements \| Discount to reflect current market conditions and ultimate collectability \| Nonperforming loans \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount for type of property, age of appraisal and current status	0.2438
Level 3 \| Collateral based measurements \| Discount to reflect current market conditions and ultimate collectability \| Nonperforming loans \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount for type of property, age of appraisal and current status	1.0000
Level 3 \| Collateral based measurements \| Discount to reflect current market conditions and ultimate collectability \| Nonperforming loans \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount for type of property, age of appraisal and current status	0.2746
Level 3 \| Discounted cash flow \| SBA servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights		876
Level 3 \| Discounted cash flow \| Residential servicing rights
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loan servicing rights		$ 2,770
Level 3 \| 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
Level 3 \| 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
Level 3 \| 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
Level 3 \| 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
Level 3 \| 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
Level 3 \| 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
Level 3 \| 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
Level 3 \| 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
Level 3 \| 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
Level 3 \| 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

RETIREMENT PLANS - Narrative (Details) - USD ($)		12 Months Ended
RETIREMENT PLANS - Narrative (Details) - USD ($)	Nov. 30, 2021	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Defined Contribution Plan Disclosure [Line Items]
Employer's matching contribution, percentage		50.00%
Employer's matching contribution, percentage of employee compensation		6.00%
Total expense recorded		$ 1,800,000	$ 1,600,000	$ 1,200,000
Employer's contribution, discretionary amount		$ 0	$ 0	$ 0
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

LOANS (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023 and December 31, 2022:


(dollars in thousands)	December 31, 2023		December 31, 2022
Commercial:
Commercial	$	825,938	$	786,877
Commercial other	656,592		727,697
Commercial real estate:
Commercial real estate non-owner occupied	1,622,668		1,591,399
Commercial real estate owner occupied	436,857		496,786
Multi-family	279,904		277,889
Farmland	67,416		67,085
Construction and land development	452,593		320,882
Total commercial loans	4,341,968		4,268,615
Residential real estate:
Residential first lien	317,388		304,243
Other residential	63,195		61,851
Consumer:
Consumer	107,743		105,880
Consumer other	827,435		1,074,134
Lease financing	473,350		491,744
Total loans	$	6,131,079	$	6,306,467

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, 2023 and 2022, are summarized as follows:


	Years Ended December 31,
(dollars in thousands)		2023		2022
Beginning balance		$	19,776	$	13,869
New loans and other additions		2,368		9,804
Repayments and other reductions		(1,154)		(3,897)
Ending balance		$	20,990	$	19,776

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, 2023, 2022 and 2021:


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







Changes in allowance for credit losses on loans for the year ended December 31, 2023:
Balance, beginning of period	$	14,639	$	29,290	$	2,435	$	4,301	$	3,599	$	6,787	$	61,051
Provision for credit losses on loans	12,780		(8,067)		3,296		1,385		929		10,809		21,132
Charge-offs	(7,357)		(5,000)		(1,601)		(271)		(1,046)		(5,026)		(20,301)
Recoveries	1,785		4,006		33		138		288		370		6,620
Balance, end of period	$	21,847	$	20,229	$	4,163	$	5,553	$	3,770	$	12,940	$	68,502








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

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 the amortized cost basis of individually evaluated loans on nonaccrual status as of December 31, 2023 and December 31, 2022:


	December 31, 2023						December 31, 2022
(dollars in thousands)	Nonaccrual with allowance		Nonaccrual with no allowance		Total nonaccrual		Nonaccrual with allowance		Nonaccrual with no allowance		Total nonaccrual
Commercial:
Commercial	$	3,560	$	—	$	3,560	$	1,910	$	1,111	$	3,021
Commercial other	4,941		—		4,941		3,169		—		3,169
Commercial real estate:
Commercial real estate non-owner occupied	1,614		14,098		15,712		1,345		11,899		13,244
Commercial real estate owner occupied	4,276		6,500		10,776		7,118		—		7,118
Multi-family	240		6,015		6,255		154		8,949		9,103
Farmland	1,148		—		1,148		25		—		25
Construction and land development	39		—		39		202		—		202
Total commercial loans	15,818		26,613		42,431		13,923		21,959		35,882
Residential real estate:
Residential first lien	2,583		490		3,073		2,925		572		3,497
Other residential	635		—		635		871		—		871
Consumer:
Consumer	134		—		134		120		—		120

Lease financing	9,097		36		9,133		1,606		—		1,606
Total loans	$	28,267	$	27,139	$	55,406	$	19,445	$	22,531	$	41,976

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, 2023 and December 31, 2022:


	Type of Collateral
(dollars in thousands)	Real Estate		Blanket Lien		Equipment		Total
December 31, 2023
Commercial:
Commercial	$	—	$	—	$	1,972	$	1,972
Commercial other	—		—		1,232		1,232
Commercial real estate:
Non-owner occupied	14,147		—		—		14,147
Owner occupied	9,275		—		—		9,275
Multi-family	5,143		—		—		5,143




Total collateral dependent loans	$	28,565	$	—	$	3,204	$	31,769

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

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, 2023 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	$	9,340	$	504	$	—	$	9,844	$	3,560	$	812,534	$	825,938
Commercial other	11,156		5,990		781		17,927		4,941		633,724		656,592
Commercial real estate:
Commercial real estate non-owner occupied	384		—		—		384		15,712		1,606,572		1,622,668
Commercial real estate owner occupied	—		—		—		—		10,776		426,081		436,857
Multi-family	14,506		8,140		—		22,646		6,255		251,003		279,904
Farmland	—		120		—		120		1,148		66,148		67,416
Construction and land development	211		10,593		—		10,804		39		441,750		452,593
Total commercial loans	35,597		25,347		781		61,725		42,431		4,237,812		4,341,968
Residential real estate:
Residential first lien	69		299		161		529		3,073		313,786		317,388
Other residential	100		50		—		150		635		62,410		63,195
Consumer:
Consumer	62		20		—		82		134		107,527		107,743
Consumer other	7,225		4,561		3		11,789		—		815,646		827,435
Lease financing	7,622		1,826		—		9,448		9,133		454,769		473,350
Total loans	$	50,675	$	32,103	$	945	$	83,723	$	55,406	$	5,991,950	$	6,131,079

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

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, 2023 and December 31, 2022:


			December 31, 2023
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2023		2022		2021		2020		2019		Prior		Revolving loans		Total
Commercial	Commercial	Acceptable credit quality	$	157,498	$	96,295	$	71,366	$	36,680	$	14,688	$	42,827	$	369,297	$	788,651
		Special mention	3,015		450		4		—		181		43		983		4,676
		Substandard	4,485		13,651		420		342		253		4,961		4,940		29,052
		Substandard – nonaccrual	1,238		—		1,321		25		79		360		536		3,559
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	166,236		110,396		73,111		37,047		15,201		48,191		375,756		825,938

	Commercial other	Acceptable credit quality	139,057		195,726		100,946		59,392		32,848		28,946		90,928		647,843
		Special mention	—		532		399		114		107		4		1,682		2,838
		Substandard	37		220		—		—		—		—		639		896
		Substandard – nonaccrual	1,819		1,918		449		184		361		94		116		4,941
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	74		—		—		—		—		—		—		74
		Subtotal	140,987		198,396		101,794		59,690		33,316		29,044		93,365		656,592

Commercial real estate	Non-owner occupied	Acceptable credit quality	237,215		653,057		309,013		110,743		82,563		124,430		6,328		1,523,349
		Special mention	4,480		—		181		457		—		274		—		5,392
		Substandard	35,811		1,658		—		—		17,835		22,911		—		78,215
		Substandard – nonaccrual	5,573		—		154		999		7,597		1,389		—		15,712
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	283,079		654,715		309,348		112,199		107,995		149,004		6,328		1,622,668

	Owner occupied	Acceptable credit quality	32,972		100,893		113,264		48,415		23,671		77,854		1,803		398,872
		Special mention	5,750		—		129		—		149		177		8		6,213
		Substandard	—		7,716		265		—		705		12,310		—		20,996
		Substandard – nonaccrual	126		9,431		28		171		27		689		304		10,776
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	38,848		118,040		113,686		48,586		24,552		91,030		2,115		436,857

	Multi-family	Acceptable credit quality	4,483		170,519		25,835		28,137		10,185		11,538		254		250,951
		Special mention	—		—		—		—		—		—		—		—
		Substandard	8,140		—		—		—		—		14,558		—		22,698
		Substandard – nonaccrual	1,700		—		899		—		104		3,552		—		6,255
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	14,323		170,519		26,734		28,137		10,289		29,648		254		279,904

	Farmland	Acceptable credit quality	10,104		4,735		13,405		12,255		3,723		18,636		1,439		64,297
		Special mention	—		—		1,451		—		—		96		—		1,547
		Substandard	—		—		133		—		22		269		—		424
		Substandard – nonaccrual	—		—		—		—		—		1,100		48		1,148
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	10,104		4,735		14,989		12,255		3,745		20,101		1,487		67,416

Construction and land development		Acceptable credit quality	65,538		233,660		88,047		—		677		916		29,385		418,223
		Special mention	—		—		—		—		—		40		—		40
		Substandard	—		—		16,594		—		—		—		15,349		31,943
		Substandard – nonaccrual	—		—		—		—		—		39		—		39
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	1,535		432		356		—		—		25		—		2,348
		Subtotal	67,073		234,092		104,997		—		677		1,020		44,734		452,593

Total		Acceptable credit quality	646,867		1,454,885		721,876		295,622		168,355		305,147		499,434		4,092,186
		Special mention	13,245		982		2,164		571		437		634		2,673		20,706
		Substandard	48,473		23,245		17,412		342		18,815		55,009		20,928		184,224
		Substandard – nonaccrual	10,456		11,349		2,851		1,379		8,168		7,223		1,004		42,430
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	1,609		432		356		—		—		25		—		2,422
Total commercial loans			$	720,650	$	1,490,893	$	744,659	$	297,914	$	195,775	$	368,038	$	524,039	$	4,341,968


			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

The following table presents the gross charge-offs by class of loan and year of origination on the commercial loan portfolio for the year ended December 31, 2023:


		Term Loans by Origination Year
(dollars in thousands)		2023		2022		2021		2020		2019		Prior		Revolving Loans		Total










For the year ended December 31, 2023
Commercial	Commercial	$	—	$	—	$	—	$	70	$	126	$	224	$	2,211	$	2,631
	Commercial Other	203		2,412		697		702		292		420		—		4,726
Commercial Real Estate	Non-owner occupied	—		—		—		—		—		2,630		—		2,630
	Owner occupied	—		—		—		—		48		1,510		—		1,558
	Multi-family	—		—		—		—		—		812		—		812

Construction and land development		—		—		—		—		42		1,559		—		1,601
Total gross commercial charge-offs		$	203	$	2,412	$	697	$	772	$	508	$	7,155	$	2,211	$	13,958


			December 31, 2023
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Residential real estate	Residential first lien	Performing	$	42,550	$	74,613	$	37,009	$	29,628	$	19,647	$	110,703	$	4	$	314,154
		Nonperforming	179		50		335		—		139		2,531		—		3,234
		Subtotal	42,729		74,663		37,344		29,628		19,786		113,234		4		317,388

	Other residential	Performing	3,245		1,113		377		409		836		2,009		54,571		62,560
		Nonperforming	—		9		—		—		—		178		448		635
		Subtotal	3,245		1,122		377		409		836		2,187		55,019		63,195

Consumer	Consumer	Performing	30,748		24,190		31,946		6,116		2,313		10,794		1,502		107,609
		Nonperforming	11		55		6		6		—		56		—		134
		Subtotal	30,759		24,245		31,952		6,122		2,313		10,850		1,502		107,743

	Consumer other	Performing	190,018		392,184		149,791		63,461		23,991		7,987		—		827,432
		Nonperforming	—		—		—		—		—		3		—		3
		Subtotal	190,018		392,184		149,791		63,461		23,991		7,990		—		827,435

Leases financing		Performing	143,334		157,059		74,359		50,174		30,428		8,863		—		464,217
		Nonperforming	1,485		5,043		1,482		317		612		194		—		9,133
		Subtotal	144,819		162,102		75,841		50,491		31,040		9,057		—		473,350

Total		Performing	409,895		649,159		293,482		149,788		77,215		140,356		56,077		1,775,972
		Nonperforming	1,675		5,157		1,823		323		751		2,962		448		13,139
Total other loans			$	411,570	$	654,316	$	295,305	$	150,111	$	77,966	$	143,318	$	56,525	$	1,789,111


			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

The following table presents the gross charge-offs by class of loan and year of origination on the other loan portfolio for the year ended December 31, 2023:


		Term Loans by Origination Year
(dollars in thousands)		2023		2022		2021		2020		2019		Prior		Revolving Loans		Total








For the year ended December 31, 2023
Residential real estate	Residential first lien	$	—	$	—	$	8	$	35	$	108	$	53	$	—	$	204
	Other residential	—		—		—		—		—		10		57		67
Consumer	Consumer	—		49		23		22		37		36		—		167
	Consumer other	46		101		45		19		37		631		—		879
Lease financing		669		2,156		1,172		213		542		274		—		5,026
Total gross other charge-offs		$	715	$	2,306	$	1,248	$	289	$	724	$	1,004	$	57	$	6,343

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities:
Net income	$ 75,460	$ 99,025	$ 81,317
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation expense	2,489	2,211	1,938
Other assets	(18,731)	876	(31,974)
Change in other liabilities	27,661	(13,579)	24,404
Net cash provided by operating activities	154,638	247,065	334,438
Cash flows from investing activities:
Net cash used in investing activities	(76,080)	(1,098,887)	(478,495)
Cash flows from financing activities:
Payments made on subordinated debt	(5,845)	(40,000)	(31,075)
Common stock repurchased	(17,898)	(1,109)	(11,692)
Cash dividends paid on common stock	(26,573)	(25,923)	(25,172)
Cash dividends paid on preferred stock	(8,913)	(3,169)	0
Proceeds from issuance of preferred stock	0	110,548	0
Proceeds from issuance of common stock under employee benefit plans	1,670	2,188	2,249
Net cash (used in) provided by financing activities	(104,128)	332,082	482,788
Net (decrease) increase in cash and cash equivalents	(25,570)	(519,740)	338,731
Cash and cash equivalents:
Beginning of period	160,631
End of period	135,061	160,631
Midland States Bancorp, Inc.
Cash flows from operating activities:
Net income	75,460	99,025	81,317
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income of subsidiaries	(28,286)	(90,021)	(44,582)
Share-based compensation expense	2,489	2,211	1,938
Other assets	462	(373)	3,223
Change in other liabilities	(198)	1,639	763
Net cash provided by operating activities	49,927	12,481	42,659
Cash flows from investing activities:
Capital injection to bank subsidiary	0	(50,000)	0
Change in note receivable due from bank subsidiary	10,000	(40,000)	0
Net cash received in dissolution of subsidiary	2,674	0	2,003
Net cash used in investing activities	12,674	(90,000)	2,003
Cash flows from financing activities:
Payments on other borrowings	0	(171)	0
Payments made on subordinated debt	(5,845)	(40,000)	(31,075)
Common stock repurchased	(17,898)	(1,109)	(11,692)
Cash dividends paid on common stock	(26,573)	(25,923)	(25,172)
Cash dividends paid on preferred stock	(8,913)	(3,169)	0
Proceeds from issuance of preferred stock	0	110,548	0
Proceeds from issuance of common stock under employee benefit plans	1,670	2,188	2,249
Net cash (used in) provided by financing activities	(57,559)	42,364	(65,690)
Net (decrease) increase in cash and cash equivalents	5,042	(35,155)	(21,028)
Cash and cash equivalents:
Beginning of period	2,721	37,876	58,904
End of period	$ 7,763	$ 2,721	$ 37,876

FHLB ADVANCES AND OTHER BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023 and December 31, 2022:


(dollars in thousands)	December 31, 2023		December 31, 2022


FHLB advances – fixed rate, fixed term at rates averaging 4.94% at December 31, 2023 - maturing through February 2028	$	150,000	$	—
FHLB advances – putable fixed rate at rates averaging 3.07% and 2.35% at December 31, 2023 and December 31, 2022, respectively – maturing through October 2028 with call provisions through October 2024	160,000		110,000
FHLB advances –SOFR floater at rates averaging 5.92% at December 31, 2022 – matured October 2023	—		100,000
FHLB advances – Short term fixed rate at rates averaging 5.45% and 4.31% at December 31, 2023 and December 31, 2022, respectively– maturing through January 2024	166,000		250,000
Total FHLB advances and other borrowings	$	476,000	$	460,000

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,
2024	$	286,000
2025	40,000
2026	35,000
2027	—
2028	115,000

Total	$	476,000

INCOME TAXES - Statutory Federal Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Expected income taxes	$ 22,590	$ 27,266	$ 20,814
Less income tax effect of:
Tax-exempt income, net	(1,762)	(2,014)	(2,499)
State tax, net of federal benefit	6,844	6,274	5,465
State tax settlement, net of federal expense	0	0	(5,614)
Equity-based compensation benefit	(21)	(186)	(93)
Surrender of company-owned life insurance policies	3,756	0	0
Valuation allowance	69	58	47
Other	637	(585)	(325)
Total income tax expense	$ 32,113	$ 30,813	$ 17,795

Insider Trading Arrangements	12 Months Ended
Insider Trading Arrangements	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

TRUST PREFERRED DEBENTURES (Tables)

12 Months Ended

Dec. 31, 2023

TRUST PREFERRED DEBENTURES

Summary of Trust Preferred Debentures

The following table summarizes the terms of each issuance:


							At December 31, 2023				At December 31, 2022
(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	SOFR plus 2.85%	1/23/2034	$	2,454	8.52	%	$	2,410	7.26	%
Midland States Preferred Securities Trust	3/26/2004	10,310		10,000	SOFR plus 2.75%	4/23/2034	10,284		8.42	%	10,282		7.07	%
Centrue Statutory Trust II	4/22/2004	10,310		10,000	SOFR plus 2.65%	6/17/2034	8,468		8.32	%	8,358		7.39	%
Love Savings/Heartland Capital Trust III	11/30/2006	20,619		20,000	SOFR plus 1.75%	12/31/2036	15,110		7.42	%	14,870		6.52	%
Love Savings/Heartland Capital Trust IV	6/6/2007	20,619		20,000	SOFR plus 1.47%	9/6/2037	14,300		7.13	%	14,055		6.20	%
Total trust preferred debentures		$	64,951				$	50,616			$	49,975

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash payments for:
Interest paid on deposits and borrowed funds	$ 159,139	$ 55,069	$ 31,735
Income tax paid (net of refunds)	25,120	36,514	7,759
Supplemental disclosures of noncash investing and financing activities:
Transfer of loans to loans held for sale	0	103,357	123,117
Transfer of loans to other real estate owned	9,112	517	805
Transfer of premises and equipment, net to assets held for sale	0	0	23
Transfer of loan servicing rights, at lower of cost or market to loan servicing rights held for sale	0	23,995	705
Transfer of loan servicing rights held for sale to loan servicing rights, at lower of cost or market	20,745	0	0
Right of use assets obtained in exchange for lease obligations	$ 2,470	$ 502	$ 1,118

DERIVATIVE INSTRUMENTS

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

As part of the Company’s overall interest rate risk management, 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. The notional amount does not represent amounts exchanged by the parties, rather the amount exchanged is determined by reference to the notional amount and the other terms of the individual agreements.

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 residential mortgage banking revenue and other noninterest income in the consolidated statements of income.


	Notional amount				Fair value gain
(dollars in thousands)	December 31, 2023		December 31, 2022		December 31, 2023		December 31, 2022
Derivative instruments (included in other assets):
Interest rate lock commitments	$	2,405	$	2,078	$	62	$	49


	Notional amount				Fair value loss
(dollars in thousands)	December 31, 2023		December 31, 2022		December 31, 2023		December 31, 2022
Derivative instruments (included in other liabilities):
Interest rate lock commitments	$	—	$	4,419	$	—	$	15
Forward commitments to sell mortgage-backed securities	5,000		6,669		83		—
Total	$	5,000	$	11,088	$	83	$	15

During the years ended December 31, 2023, 2022 and 2021, the Company recognized net losses of $0.1 million, $0.4 million and $1.5 million, respectively, on derivative instruments.

Cash Flow Hedges

The Company periodically enters 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, 2023 and December 31, 2022


(dollars in thousands)	December 31, 2023			December 31, 2022
Notional Amount	$	400,000		$	200,000
Fair value loss included in other liabilities	(8,443)			(9,999)
Tax effected amount included in accumulated other comprehensive (loss) income	(6,164)			(7,300)
Average remaining life	2.67			3.37
Weighted average pay rate	6.55		%	7.23		%
Weighted average receive rate	5.41		%	5.48		%

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 $6.9 million and $7.4 million at December 31, 2023 and December 31, 2022, respectively. The fair value of the customer derivative instruments and the offsetting counterparty derivative instruments was $0.3 million and $0.4 million at December 31, 2023 and December 31, 2022, respectively, which are included in other assets and other liabilities, respectively, on the consolidated balance sheets.

REVENUE FROM CONTRACTS WITH CUSTOMERS

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company’s revenue from contracts with customers in the scope of Topic 606 is recognized within noninterest income in the consolidated statements of income. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2023, 2022 and 2021.


	Years Ended December 31,
(dollars in thousands)		2023		2022		2021
Noninterest income - in-scope of Topic 606
Wealth management revenue:
Trust management/administration fees		$	22,208	$	21,704	$	20,954
Investment advisory fees		6		—		1,282
Investment brokerage fees		1,720		2,068		2,050
Other		1,638		1,936		2,525
Service charges on deposit accounts:
Nonsufficient fund fees		7,325		6,404		5,339
Other		4,665		3,076		3,009
Interchange revenues		14,302		13,879		14,500
Other income:
Merchant services revenue		1,592		1,590		1,511
Other		1,726		3,039		3,850
Noninterest income - out-of-scope of Topic 606		11,408		26,195		14,879
Total noninterest income		$	66,590	$	79,891	$	69,899

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

Wealth Management Revenue

Wealth management revenue is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company also earns investment advisory fees through its SEC registered investment advisory subsidiary. The Company’s performance obligation in both of these instances is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and contractually determined fee schedules. Payment is generally received a few days after month end through a direct charge to each customer’s account. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. Fees generated from transactions executed by the Company’s third party broker dealer are remitted 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
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Schedule of Segment Financial Information

Selected business segment financial information for the years ended December 31, 2023, 2022 and 2021 were as follows:


(dollars in thousands)	Banking		Wealth Management		Other		Total










Year Ended December 31, 2023
Net interest income (expense)	$	244,877	$	(12)	$	(8,848)	$	236,017
Provision for credit losses	21,132		—		—		21,132
Noninterest income	40,830		25,572		188		66,590
Noninterest expense	155,487		20,247		(1,832)		173,902
Income (loss) before income taxes (benefit)	109,088		5,313		(6,828)		107,573
Income taxes (benefit)	32,654		2,309		(2,850)		32,113
Net income (loss)	$	76,434	$	3,004	$	(3,978)	$	75,460
Total assets	$	7,845,023	$	31,437	$	(9,592)	$	7,866,868











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

PREMISES, EQUIPMENT AND LEASES - Information Related to Operating Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Operating lease cost	$ 1,919	$ 2,096
Operating cash flows from leases	2,256	2,507
Right-of-use assets obtained in exchange for lease obligations	2,470	502	$ 1,118
Right-of-use assets derecognized due to terminations or impairment	$ 0	$ (123)
Weighted average remaining lease term	7 years 9 months 18 days	7 years 2 months 12 days
Weighted average discount rate	3.41%	2.89%

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, 2023	Dec. 31, 2022	Dec. 31, 2021
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	$ 163	$ (425)	$ (215)
Commercial Loan Portfolio
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	0	0	(67)
Residential Loan Portfolio
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	3,811	1,286
Difference	203	42
Contractual principal	3,608	1,244
Gains and losses from fair value changes
Gains and losses from fair value changes of loan held for sales	$ 163	$ (425)	$ (148)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Net interest income (expense)	$ 236,017	$ 245,735	$ 207,675
Provision for credit losses	21,132	20,126	3,393
Noninterest income	66,590	79,891	69,899
Noninterest expense	173,902	175,662	175,069
Income before income taxes	107,573	129,838	99,112
Income taxes (benefit)	32,113	30,813	17,795
Net income	75,460	99,025	81,317
Total assets	7,866,868	7,855,501	7,443,805
Banking
Segment Reporting Information [Line Items]
Net interest income (expense)	244,877	256,226	218,309
Provision for credit losses	21,132	20,126	3,393
Noninterest income	40,830	54,179	42,249
Noninterest expense	155,487	157,680	158,803
Income before income taxes	109,088	132,599	98,362
Income taxes (benefit)	32,654	35,055	17,218
Net income	76,434	97,544	81,144
Total assets	7,845,023	7,841,966	7,460,114
Wealth management
Segment Reporting Information [Line Items]
Net interest income (expense)	(12)	0	0
Provision for credit losses	0	0	0
Noninterest income	25,572	25,708	26,876
Noninterest expense	20,247	18,019	17,372
Income before income taxes	5,313	7,689	9,504
Income taxes (benefit)	2,309	2,136	2,679
Net income	3,004	5,553	6,825
Total assets	31,437	29,332	28,883
Other
Segment Reporting Information [Line Items]
Net interest income (expense)	(8,848)	(10,491)	(10,634)
Provision for credit losses	0	0	0
Noninterest income	188	4	774
Noninterest expense	(1,832)	(37)	(1,106)
Income before income taxes	(6,828)	(10,450)	(8,754)
Income taxes (benefit)	(2,850)	(6,378)	(2,102)
Net income	(3,978)	(4,072)	(6,652)
Total assets	$ (9,592)	$ (15,797)	$ (45,192)

PREMISES, EQUIPMENT AND LEASES

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

PREMISES, EQUIPMENT AND LEASES

A summary of premises, equipment and leases at December 31, 2023 and December 31, 2022 is as follows:


	December 31,		December 31,
(dollars in thousands)	2023		2022
Land	$	15,968	$	16,004
Buildings and improvements	78,104		71,837
Furniture and equipment	35,797		34,081
Lease right-of-use assets	7,673		7,001
Total	137,542		128,923
Accumulated depreciation	(54,728)		(50,630)
Premises and equipment, net	$	82,814	$	78,293

Depreciation expense for the years ended December 31, 2023, 2022 and 2021 was $4.8 million, $4.8 million, and $5.5 million, respectively.

The Company has entered into operating leases, primarily for banking offices and operating facilities, which have remaining lease terms of 2 months to 14 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 in the remaining lease term if they are reasonably certain to be exercised. The Company had operating lease right-of-use assets of $7.7 million and $7.0 million as of December 31, 2023 and December 31, 2022, respectively, included in premises and equipment on our consolidated balance sheets. The operating lease liabilities of the Company were $9.3 million and $8.9 million as of December 31, 2023 and December 31, 2022, 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, 2023 and 2022 was as follows:


	Years Ended December 31,
(dollars in thousands)		2023			2022
Operating lease cost		$	1,919		$	2,096
Operating cash flows from leases		2,256			2,507
Right-of-use assets obtained in exchange for lease obligations		2,470			502
Right-of-use assets derecognized due to terminations or impairment		—			(123)
Weighted average remaining lease term		7.8 years			7.2 years
Weighted average discount rate		3.41		%	2.89		%

Net rent expense under operating leases, included in occupancy and equipment expense, was $1.4 million, $1.5 million and $1.4 million for the years ended December 31, 2023, 2022 and 2021, respectively.

The projected minimum rental payments under the terms of the leases as of December 31, 2023 were as follows:


(dollars in thousands)	Amount
Year ending December 31:
2024	$	2,025
2025	1,322
2026	1,197
2027	1,101
2028	1,074
Thereafter	3,976
Total future minimum lease payments	10,695
Less imputed interest	(1,360)
Total operating lease liabilities	$	9,335

LOANS - Impaired Loans with Interest Recognized (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Interest income :
Interest income recognized on nonaccrual loans	$ 0	$ 0
Additional interest income that would have been recorded had they been current	$ 3,400,000	$ 2,800,000	$ 2,700,000

PREFERRED STOCK	12 Months Ended
PREFERRED STOCK	Dec. 31, 2023
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 are not 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. 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.

PARENT COMPANY ONLY FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023		2022
Assets:
Cash	$	7,763	$	2,721
Investment in subsidiaries	892,781		860,129


Note receivable due from bank subsidiary	30,000		40,000
Other assets	8,010		8,468
Total assets	$	938,554	$	911,318
Liabilities:
Subordinated debt	$	93,546	$	99,772
Trust preferred debentures	50,616		49,975



Other liabilities	2,539		2,997
Total liabilities	146,701		152,744
Shareholders’ equity	791,853		758,574
Total liabilities and shareholders’ equity	$	938,554	$	911,318

Schedule of Condensed Statement of Income


Condensed Statements of Income
(dollars in thousands)

	Years ended December 31,
	2023		2022		2021
Income
Dividends from subsidiaries	$	54,000	$	14,765	$	45,350
Earnings of consolidated subsidiaries, net of dividends	28,286		90,021		44,582
Interest income on note due from bank subsidiary	1,578		10		—
Other income	323		4		932
Total income	84,187		104,800		90,864
Interest expense	10,555		10,534		10,668
Other expense	1,044		1,625		984
Total expense	11,599		12,159		11,652
Income before income tax benefit	72,588		92,641		79,212
Income tax benefit	2,872		6,384		2,105
Net income	$	75,460	$	99,025	$	81,317

Schedule of Condensed Cash Flows


Condensed Statements of Cash Flows
(dollars in thousands)

	Years ended December 31,
	2023		2022		2021
Cash flows from operating activities:
Net income	$	75,460	$	99,025	$	81,317
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income of subsidiaries	(28,286)		(90,021)		(44,582)
Share-based compensation expense	2,489		2,211		1,938
Change in other assets	462		(373)		3,223
Change in other liabilities	(198)		1,639		763
Net cash provided by operating activities	49,927		12,481		42,659
Cash flows from investing activities:

Capital injection to bank subsidiary	—		(50,000)		—
Change in note receivable due from bank subsidiary	10,000		(40,000)		—
Net cash received in dissolution of subsidiary	2,674		—		2,003
Net cash provided by (used in) investing activities	12,674		(90,000)		2,003
Cash flows from financing activities:

Payments on other borrowings	—		(171)		—
Payments made on subordinated debt	(5,845)		(40,000)		(31,075)



Common stock repurchased	(17,898)		(1,109)		(11,692)

Cash dividends paid on common stock	(26,573)		(25,923)		(25,172)
Cash dividends paid on preferred stock	(8,913)		(3,169)		—
Proceeds from issuance of preferred stock	—		110,548		—
Proceeds from issuance of common stock under employee benefit plans	1,670		2,188		2,249
Net cash (used in) provided by financing activities	(57,559)		42,364		(65,690)
Net increase (decrease) in cash	5,042		(35,155)		(21,028)
Cash:
Beginning of period	2,721		37,876		58,904
End of period	$	7,763	$	2,721	$	37,876

INCOME TAXES - Narrative (Details) - USD ($)	12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Tax Credit Carryforward [Line Items]
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	8,090,000	8,922,000
Unrecognized tax benefits	0	0
Interest or penalties relative to unrecognized tax benefits	0	0
Valuation allowance	244,000	$ 176,000
Addition to valuation allowance	68,000
Federal
Tax Credit Carryforward [Line Items]
Operating Loss Carryforwards	33,600,000
State
Tax Credit Carryforward [Line Items]
Tax credit carryforward	800,000
State \| Illinois
Tax Credit Carryforward [Line Items]
Post-apportioned operating loss carryforward	13,800,000
State \| Missouri
Tax Credit Carryforward [Line Items]
Pre-apportioned operating loss carryforward	$ 33,600,000

ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2023

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

FHLB ADVANCES AND OTHER BORROWINGS - Summary of FHLB Advances (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 476,000	$ 460,000
FHLB advances, collateral for mortgage and home equity line of credit loans	2,980,000	2,900,000
Midland States Bank \| Fixed rate fixed term maturing February 2028
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 150,000	0
Interest rate	4.94%
Midland States Bank \| Putable fixed rate maturing through February 2028
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 160,000	$ 110,000
Interest rate	3.07%	2.35%
Midland States Bank \| Floater rate maturing October 2023
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 0	$ 100,000
Midland States Bank \| Floater rate maturing October 2023 \| SOFR
FHLB ADVANCES AND OTHER BORROWINGS
Interest rate		5.92%
Midland States Bank \| Short term fixed rate maturing through July 2023
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 166,000	$ 250,000
Interest rate	5.45%	4.31%

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

DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2023

Deposits [Abstract]

Schedule Summarizes the Classification of Deposits

The following table summarizes the classification of deposits as of December 31, 2023 and December 31, 2022:


(dollars in thousands)	December 31, 2023		December 31, 2022
Noninterest-bearing demand	$	1,145,395	$	1,362,158
Interest-bearing:
Checking	2,511,840		2,494,073
Money market	1,135,629		1,184,101
Savings	559,267		661,932
Time	957,398		662,388
Total deposits	$	6,309,529	$	6,364,652

Time Deposit Maturities

As of December 31, 2023, the scheduled maturities of time deposits were as follows:


(dollars in thousands)	Amount
Year Ending December 31,
2024	$	806,156
2025	102,413
2026	38,566
2027	7,026
2028	3,237

Total	$	957,398

- Definition

Tabular disclosure of type of deposit liability.

+ References

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

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (1)
-Publisher SEC

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (2)
-Publisher SEC

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (3)
-Publisher SEC

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (4)
-Publisher SEC

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (a)
-Subparagraph (5)
-Publisher SEC

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

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

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

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (1)
-Publisher SEC

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

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)
-Publisher SEC

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

Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iii)
-Publisher SEC

Reference 15: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph (f)
-Subparagraph (2)(i)(iv)
-Publisher SEC

+ Details

INVESTMENT SECURITIES (Tables)

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Schedule of Investment Securities Classified as Available for Sale

Investment securities available for sale at December 31, 2023 and December 31, 2022 were as follows:


	December 31, 2023
(dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities available for sale
U.S. Treasury securities	$	1,097	$	—	$	—	$	1,097
U.S. government sponsored entities and U.S. agency securities	74,161		176		1,765		72,572
Mortgage-backed securities - agency	650,119		2,325		77,944		574,500
Mortgage-backed securities - non-agency	87,019		414		3,904		83,529
State and municipal securities	62,952		258		5,750		57,460
Collateralized loan obligations	27,646		3		84		27,565
Corporate securities	109,598		41		10,467		99,172
Total available for sale securities	$	1,012,592	$	3,217	$	99,914	$	915,895


	December 31, 2022
(dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized 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

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, 2023. Expected maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be prepaid without penalties. The maturities of all other investment securities available for sale are based on final contractual maturity.


(dollars in thousands)	Amortized cost		Fair value
Investment securities available for sale
Within one year	$	13,624	$	13,590
After one year through five years	112,287		109,895
After five years through ten years	122,716		109,079
After ten years	26,827		25,302
Mortgage-backed securities	737,138		658,029
Total available for sale securities	$	1,012,592	$	915,895

Proceeds and gross realized gains and losses on sales of investment securities available for sale for the years ended 2023, 2022, and 2021 are summarized as follows:


	Years Ended December 31,
(dollars in thousands)		2023		2022		2021
Investment securities available for sale
Proceeds from sales		$	191,733	$	136,403	$	14,777
Gross realized gains on sales		338		829		537
Gross realized losses on sales		(9,710)		(1,059)		—

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, 2023 and December 31, 2022, 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, 2023
	Less than 12 Months				12 Months or more				Total
(dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
Investment securities available for sale

U.S. government sponsored entities and U.S. agency securities	$	42,826	$	87	$	8,323	$	1,678	$	51,149	$	1,765
Mortgage-backed securities - agency	130,106		7,386		348,476		70,558		478,582		77,944
Mortgage-backed securities - non-agency	8,852		353		19,418		3,551		28,270		3,904
State and municipal securities	51,497		5,750		—		—		51,497		5,750
Collateralized loan obligations	14,763		84		—		—		14,763		84
Corporate securities	4,688		53		84,662		10,414		89,350		10,467
Total available for sale securities	$	252,732	$	13,713	$	460,879	$	86,201	$	713,611	$	99,914


	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

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-2

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481800/320-10-50-3

+ Details

RETIREMENT PLANS - Assumptions (Details)	12 Months Ended
RETIREMENT PLANS - Assumptions (Details)	Dec. 31, 2023	Dec. 31, 2022
Retirement Benefits [Abstract]
Discount rate	5.05%	2.70%
Expected long-term return on plan assets	4.75%	5.50%

LOAN SERVICING RIGHTS - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Servicing Assets at Fair Value [Line Items]
Prepayment rate		7.23%
Discount rate		8.12%
Commercial FHA
Servicing Assets at Fair Value [Line Items]
Portfolios transferred to servicing rights held for sale	$ 24,000	$ (20,473)	$ 23,995	$ 0

PARENT COMPANY ONLY FINANCIAL INFORMATION - Condensed Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Condensed Statements of Income
Interest income on note due from bank subsidiary	$ 404,296	$ 301,755	$ 237,817
Interest expense	168,279	56,020	30,142
Income before income taxes	107,573	129,838	99,112
Income tax benefit	(32,113)	(30,813)	(17,795)
Net income	75,460	99,025	81,317
Midland States Bancorp, Inc.
Condensed Statements of Income
Dividends from subsidiaries	54,000	14,765	45,350
Earnings of consolidated subsidiaries, net of dividends	28,286	90,021	44,582
Other income	323	4	932
Total income	84,187	104,800	90,864
Interest expense	10,555	10,534	10,668
Other expense	1,044	1,625	984
Total expense	11,599	12,159	11,652
Income before income taxes	72,588	92,641	79,212
Income tax benefit	2,872	6,384	2,105
Net income	75,460	99,025	81,317
Midland States Bancorp, Inc. \| Related Party
Condensed Statements of Income
Interest income on note due from bank subsidiary	$ 1,578	$ 10	$ 0

SHARE-BASED COMPENSATION - Restricted stock awards (Details) - Restricted stock and restricted stock unit awards	12 Months Ended
	Dec. 31, 2023 $ / shares shares
Number outstanding
Nonvested, beginning of year (in shares) \| shares	269,978
Granted during the year (in shares) \| shares	196,906
Vested during the year (in shares) \| shares	(93,837)
Forfeited during the year (in shares) \| shares	(32,033)
Nonvested, end of year (in shares) \| shares	341,014
Weighted average grant due fair value
Nonvested at December 31, 2018 (in dollars per shares) \| $ / shares	$ 25.53
Granted during the year (in dollars per shares) \| $ / shares	23.04
Vested during the year (in dollars per shares) \| $ / shares	24.93
Forfeited during the year (in dollars per shares) \| $ / shares	25.58
Nonvested at December 31, 2019 (in dollars per shares) \| $ / shares	$ 24.25

INVESTMENT SECURITIES - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Amortized cost
Within one year	$ 13,624
After one year through five years	112,287
After five years through ten years	122,716
After ten years	26,827
Mortgage-backed securities	737,138
Total available for sale securities	1,012,592	$ 873,023
Fair value
Within one year	13,590
After one year through five years	109,895
After five years through ten years	109,079
After ten years	25,302
Mortgage-backed securities	658,029
Total available for sale securities	915,895	768,234
Proceeds from sales	191,733	136,403	$ 14,777
Gross realized gains on sales	338	829	537
Gross realized losses on sales	$ (9,710)	$ (1,059)	$ 0

INVESTMENT SECURITIES

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

Investment Securities Available for Sale

Investment securities available for sale at December 31, 2023 and December 31, 2022 were as follows:


	December 31, 2023
(dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities available for sale
U.S. Treasury securities	$	1,097	$	—	$	—	$	1,097
U.S. government sponsored entities and U.S. agency securities	74,161		176		1,765		72,572
Mortgage-backed securities - agency	650,119		2,325		77,944		574,500
Mortgage-backed securities - non-agency	87,019		414		3,904		83,529
State and municipal securities	62,952		258		5,750		57,460
Collateralized loan obligations	27,646		3		84		27,565
Corporate securities	109,598		41		10,467		99,172
Total available for sale securities	$	1,012,592	$	3,217	$	99,914	$	915,895


	December 31, 2022
(dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized 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

Investment securities with a carrying amount of $320.5 million and $440.6 million were pledged for public deposits at December 31, 2023 and December 31, 2022, respectively.


(dollars in thousands)	Amortized cost		Fair value
Investment securities available for sale
Within one year	$	13,624	$	13,590
After one year through five years	112,287		109,895
After five years through ten years	122,716		109,079
After ten years	26,827		25,302
Mortgage-backed securities	737,138		658,029
Total available for sale securities	$	1,012,592	$	915,895

Proceeds and gross realized gains and losses on sales of investment securities available for sale for the years ended 2023, 2022, and 2021 are summarized as follows:


	Years Ended December 31,
(dollars in thousands)		2023		2022		2021
Investment securities available for sale
Proceeds from sales		$	191,733	$	136,403	$	14,777
Gross realized gains on sales		338		829		537
Gross realized losses on sales		(9,710)		(1,059)		—


	December 31, 2023
	Less than 12 Months				12 Months or more				Total
(dollars in thousands)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
Investment securities available for sale

U.S. government sponsored entities and U.S. agency securities	$	42,826	$	87	$	8,323	$	1,678	$	51,149	$	1,765
Mortgage-backed securities - agency	130,106		7,386		348,476		70,558		478,582		77,944
Mortgage-backed securities - non-agency	8,852		353		19,418		3,551		28,270		3,904
State and municipal securities	51,497		5,750		—		—		51,497		5,750
Collateralized loan obligations	14,763		84		—		—		14,763		84
Corporate securities	4,688		53		84,662		10,414		89,350		10,467
Total available for sale securities	$	252,732	$	13,713	$	460,879	$	86,201	$	713,611	$	99,914


	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

At December 31, 2023, 262 investment securities available for sale had unrealized losses with aggregate depreciation of 12.27% from their amortized cost basis. For all of the above investment securities, the unrealized losses were generally due to changes in interest rates and other market conditions, 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.

SUBORDINATED DEBT - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Subordinated Borrowing [Line Items]
Repayments of subordinated debt		$ 5,845	$ 40,000	$ 31,075
Gain on repurchase		$ 676	$ 0	$ 0
5.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Repayments of subordinated debt	$ 6,000
Gain on repurchase	700
6.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Repurchased amount	$ 600
Redemption price percentage	100.00%

DERIVATIVE INSTRUMENTS - Interest Rate Lock Commitments and Forward Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
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)	$ (83)	$ (15)
Notional amount, liability	5,000	11,088
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	2,405	2,078
Fair value gain (loss)	62	49
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)	0	(15)
Notional amount, liability	0	4,419
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)	(83)	0
Notional amount, liability	$ 5,000	$ 6,669

- Definition

Nominal or face amount used to calculate payments on the derivative asset.

+ References + Details

- Definition

Nominal or face amount used to calculate payments on the derivative liability.

+ References + Details

SUBORDINATED DEBT

12 Months Ended

Dec. 31, 2023

Subordinated Borrowings [Abstract]

SUBORDINATED DEBT

The following table summarizes the Company’s subordinated debt at December 31, 2023 and December 31, 2022:


	Subordinated debt
	Fixed to Float						Fixed
(dollars in thousands)	Issued September 2019			Issued September 2019			Issued June 2015			Total
At December 31, 2023
Outstanding amount	$	66,750		$	27,250		$	—		$	94,000
Carrying amount	66,573			26,973			—			93,546
Current rate	5.00		%	5.50		%	N/A
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		%
Maturity date	9/30/2029			9/30/2034			6/18/2025
Optional redemption date	9/30/2024			9/30/2029			N/A
Fixed to variable conversion date	9/30/2024			9/30/2029			N/A
Variable rate	3-month SOFR plus 3.61%			3-month SOFR plus 4.05%			N/A
Interest payment terms	Semiannually			Semiannually			Semiannually

During the second quarter of 2023, the Company repurchased $6.0 million of the outstanding Fixed to Float Subordinated Notes due September 30, 2029. The Company recognized a gain of $0.7 million, which included the discount realized on the repurchase, offset by the remaining unamortized debt issuance costs on the repurchase.

The Company also repurchased the outstanding Fixed Rate Subordinated Notes due June 18, 2025, having an aggregate principal amount of $0.6 million, during the second quarter of 2023. The aggregate repurchase price was 100% of the aggregate principal amount of the subordinated notes, plus accrued and unpaid interest.

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.

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Assets
Investment securities available for sale	$ 915,895	$ 768,234
Equity securities recorded at fair value	4,501	$ 8,626
Derivative Asset, Statement of Financial Position [Extensible Enumeration]		Other assets
Losses recognized on assets measured on non-recurring basis
Commercial mortgage servicing rights	0	$ (1,263)	$ (7,532)
Loan servicing rights held for sale	0	(3,250)	(222)
U.S. Treasury securities
Assets
Investment securities available for sale	1,097	81,230
U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	72,572	37,509
Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	83,529	20,754
State and municipal securities
Assets
Investment securities available for sale	57,460	94,636
Collateralized loan obligations
Assets
Investment securities available for sale	27,565
Corporate securities
Assets
Investment securities available for sale	99,172	85,955
Recurring member
Assets
Loans held for sale	3,811	1,286
Derivative assets	372	481
Total	924,579	778,627
Liabilities
Derivative liabilities	8,836	10,446
Total	8,836	10,446
Recurring member \| U.S. Treasury securities
Assets
Investment securities available for sale	1,097	81,230
Recurring member \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	72,572	37,509
Recurring member \| Mortgage-backed securities - agency
Assets
Investment securities available for sale	574,500	448,150
Recurring member \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	83,529	20,754
Recurring member \| State and municipal securities
Assets
Investment securities available for sale	57,460	94,636
Recurring member \| Collateralized loan obligations
Assets
Investment securities available for sale	27,565
Recurring member \| Corporate securities
Assets
Investment securities available for sale	99,172	85,955
Recurring member \| Equity securities
Assets
Equity securities recorded at fair value	4,501	8,626
Recurring member \| Level 1
Assets
Loans held for sale	0	0
Derivative assets	0	0
Total	5,598	89,856
Liabilities
Derivative liabilities	0	0
Total	0	0
Recurring member \| Level 1 \| U.S. Treasury securities
Assets
Investment securities available for sale	1,097	81,230
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 \| Collateralized loan obligations
Assets
Investment securities available for sale	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	4,501	8,626
Recurring member \| Level 2
Assets
Loans held for sale	3,811	1,286
Derivative assets	372	481
Total	918,981	688,771
Liabilities
Derivative liabilities	8,836	10,446
Total	8,836	10,446
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	72,572	37,509
Recurring member \| Level 2 \| Mortgage-backed securities - agency
Assets
Investment securities available for sale	574,500	448,150
Recurring member \| Level 2 \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	83,529	20,754
Recurring member \| Level 2 \| State and municipal securities
Assets
Investment securities available for sale	57,460	94,636
Recurring member \| Level 2 \| Collateralized loan obligations
Assets
Investment securities available for sale	27,565
Recurring member \| Level 2 \| Corporate securities
Assets
Investment securities available for sale	99,172	85,955
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	0
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 \| Collateralized loan obligations
Assets
Investment securities available for sale	0
Recurring member \| Level 3 \| Corporate securities
Assets
Investment securities available for sale	0	0
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
Mortgage servicing rights held for sale		20,745
Nonperforming loans	4,633	49,423
Other real estate owned	9,112	6,729
Assets held for sale		356
Losses recognized on assets measured on non-recurring basis
Commercial mortgage servicing rights	0	1,263	7,532
Loan servicing rights held for sale	0	3,250	222
Nonperforming loans	19,421	8,892	14,468
Other real estate owned	0	4,276	454
Total loss on assets measured on a nonrecurring basis	19,421	17,681	$ 22,676
Non recurring member \| Level 1
Assets measured at fair value on a non-recurring basis:
Loan servicing rights		0
Mortgage servicing rights held for sale		0
Nonperforming loans	0	5,478
Other real estate owned	0	0
Assets held for sale		0
Non recurring member \| Level 2
Assets measured at fair value on a non-recurring basis:
Loan servicing rights		0
Mortgage servicing rights held for sale		20,745
Nonperforming loans	3,964	34,406
Other real estate owned	9,112	6,729
Assets held for sale		356
Non recurring member \| Level 3
Assets measured at fair value on a non-recurring basis:
Loan servicing rights		1,205
Mortgage servicing rights held for sale		0
Nonperforming loans	669	9,539
Other real estate owned	$ 0	0
Assets held for sale		$ 0

INCOME TAXES - Components of Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Federal:
Current	$ 25,221	$ 22,792	$ 10,044
Deferred	(1,791)	64	7,926
State:
Current	9,226	11,101	144
Deferred	(543)	(3,144)	(319)
Total income tax expense	$ 32,113	$ 30,813	$ 17,795

- Definition

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

+ References + Details

INCOME TAXES

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

The components of income taxes for the years ended December 31, 2023, 2022 and 2021 were as follows:


(dollars in thousands)	2023		2022		2021
Federal:
Current	$	25,221	$	22,792	$	10,044
Deferred	(1,791)		64		7,926
State:
Current	9,226		11,101		144
Deferred	(543)		(3,144)		(319)
Total income tax expense	$	32,113	$	30,813	$	17,795

The Company’s income tax expense differed from the statutory federal rate of 21% for the years ended December 31, 2023, 2022 and 2021 as follows:


(dollars in thousands)	2023		2022		2021
Expected income taxes	$	22,590	$	27,266	$	20,814
Less income tax effect of:
Tax-exempt income, net	(1,762)		(2,014)		(2,499)

State tax, net of federal benefit	6,844		6,274		5,465

State tax settlement, net of federal expense	—		—		(5,614)
Equity-based compensation benefit	(21)		(186)		(93)


Surrender of company-owned life insurance policies	3,756		—		—
Valuation allowance	69		58		47

Other	637		(585)		(325)
Actual income tax expense	$	32,113	$	30,813	$	17,795

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.

Deferred tax assets, net in the accompanying consolidated balance sheets at December 31, 2023 and 2022 include the following amounts of deferred tax assets and liabilities:


(dollars in thousands)	2023		2022
Assets:
Allowance for credit losses on loans	$	18,496	$	16,484
Deferred compensation	2,108		2,238
Loans	1,069		1,379

Tax credits	621		861

Unrealized loss on securities	26,022		28,404
Unrealized loss on derivatives	2,280		2,700

Net operating losses	8,090		8,922






Operating lease liabilities	2,521		2,415
Other, net	2,842		4,837
Deferred tax assets	64,049		68,240
Valuation allowance	(244)		(176)
Deferred tax assets, net of valuation allowance	63,805		68,064
Liabilities:
Premises and equipment	786		573


Mortgage servicing rights	3,870		4,217
Fair value adjustment on trust preferred debentures	3,853		4,025

Deferred loan costs, net of fees	2,410		3,006
Intangible assets	3,577		4,458



Leased equipment	23,824		24,346
Operating lease right-of-use assets	2,072		1,890
Other, net	1,202		3,064
Deferred tax liabilities	41,594		45,579
Deferred tax assets, net	$	22,211	$	22,485

At December 31, 2023 and 2022, 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 Company had $33.6 million of federal net operating loss carryforwards expiring 2024 through 2035, $13.8 million of Illinois post-apportioned net operating loss carryforwards expiring in 2028 and 2029, and $33.6 million of Missouri pre-apportioned net operating loss carryforwards expiring 2024 through 2035, at December 31, 2023. 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 $0.8 million with a five year carryforward period, expiring between 2024 and 2028. Any amounts that are expected to expire before being fully utilized have been accounted for through a valuation allowance as discussed below.

The deferred tax asset associated with the unrealized losses on securities is mainly a result of changes in interest rates, and the unrealized losses are considered to be temporary as the fair value is expected to recover as the securities approach their respective maturity dates.

We had no unrecognized tax benefits as of December 31, 2023 and 2022, and did not recognize any increase of unrecognized benefits during 2023 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, 2023 and 2022.

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, 2023, 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 $176,000 valuation allowance from December 31, 2022 in the amount of $68,000, resulting in a valuation allowance of $244,000 at December 31, 2023 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 2020 through 2022 and by state taxing authorities are 2019 through 2022.

- 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
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

DEPOSITS - Summary of Classification of Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Classification of deposits
Noninterest-bearing demand	$ 1,145,395	$ 1,362,158
Interest-bearing:
Checking	2,511,840	2,494,073
Money market	1,135,629	1,184,101
Savings	559,267	661,932
Time	957,398	662,388
Total deposits	$ 6,309,529	$ 6,364,652

LOANS - Non-accrual (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Impaired loans (excluding PCI loans) by portfolio
Threshold amount for non accrual loans	$ 500,000
Nonaccrual
Nonaccrual with allowance	28,267,000	$ 19,445,000
Nonaccrual with no allowance	27,139,000	22,531,000
Total nonaccrual	55,406,000	41,976,000
Commercial Loan Portfolio
Nonaccrual
Nonaccrual with allowance	15,818,000	13,923,000
Nonaccrual with no allowance	26,613,000	21,959,000
Total nonaccrual	42,431,000	35,882,000
Commercial Loan Portfolio \| Commercial
Nonaccrual
Nonaccrual with allowance	3,560,000	1,910,000
Nonaccrual with no allowance	0	1,111,000
Total nonaccrual	3,560,000	3,021,000
Commercial Loan Portfolio \| Commercial other
Nonaccrual
Nonaccrual with allowance	4,941,000	3,169,000
Nonaccrual with no allowance	0	0
Total nonaccrual	4,941,000	3,169,000
Commercial Loan Portfolio \| Commercial real estate non-owner occupied
Nonaccrual
Nonaccrual with allowance	1,614,000	1,345,000
Nonaccrual with no allowance	14,098,000	11,899,000
Total nonaccrual	15,712,000	13,244,000
Commercial Loan Portfolio \| Commercial real estate owner occupied
Nonaccrual
Nonaccrual with allowance	4,276,000	7,118,000
Nonaccrual with no allowance	6,500,000	0
Total nonaccrual	10,776,000	7,118,000
Commercial Loan Portfolio \| Multi-family
Nonaccrual
Nonaccrual with allowance	240,000	154,000
Nonaccrual with no allowance	6,015,000	8,949,000
Total nonaccrual	6,255,000	9,103,000
Commercial Loan Portfolio \| Farmland
Nonaccrual
Nonaccrual with allowance	1,148,000	25,000
Nonaccrual with no allowance	0	0
Total nonaccrual	1,148,000	25,000
Commercial Loan Portfolio \| Construction and land development
Nonaccrual
Nonaccrual with allowance	39,000	202,000
Nonaccrual with no allowance	0	0
Total nonaccrual	39,000	202,000
Residential Loan Portfolio \| Residential first lien
Nonaccrual
Nonaccrual with allowance	2,583,000	2,925,000
Nonaccrual with no allowance	490,000	572,000
Total nonaccrual	3,073,000	3,497,000
Residential Loan Portfolio \| Other residential
Nonaccrual
Nonaccrual with allowance	635,000	871,000
Nonaccrual with no allowance	0	0
Total nonaccrual	635,000	871,000
Consumer Loan Portfolio \| Consumer
Nonaccrual
Nonaccrual with allowance	134,000	120,000
Nonaccrual with no allowance	0	0
Total nonaccrual	134,000	120,000
Lease Loan Portfolio \| Lease financing
Nonaccrual
Nonaccrual with allowance	9,097,000	1,606,000
Nonaccrual with no allowance	36,000	0
Total nonaccrual	$ 9,133,000	$ 1,606,000

LOANS - Gross Writeoffs (Details) - USD ($) $ in Thousands	12 Months Ended
LOANS - Gross Writeoffs (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Risk category
Total	$ 20,301	$ 11,103	$ 15,420
Commercial Loan Portfolio
Risk category
2023	203
2022	2,412
2021	697
2020	772
2019	508
Prior	7,155
Revolving Loans	2,211
Total	13,958
Commercial Loan Portfolio \| Commercial
Risk category
2023	0
2022	0
2021	0
2020	70
2019	126
Prior	224
Revolving Loans	2,211
Total	2,631
Commercial Loan Portfolio \| Commercial other
Risk category
2023	203
2022	2,412
2021	697
2020	702
2019	292
Prior	420
Revolving Loans	0
Total	4,726
Commercial Loan Portfolio \| Commercial real estate non-owner occupied
Risk category
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	2,630
Revolving Loans	0
Total	2,630
Commercial Loan Portfolio \| Commercial real estate owner occupied
Risk category
2023	0
2022	0
2021	0
2020	0
2019	48
Prior	1,510
Revolving Loans	0
Total	1,558
Commercial Loan Portfolio \| Multi-family
Risk category
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	812
Revolving Loans	0
Total	812
Commercial Loan Portfolio \| Construction and land development
Risk category
2023	0
2022	0
2021	0
2020	0
2019	42
Prior	1,559
Revolving Loans	0
Total	1,601	6	448
Residential Loan Portfolio \| Residential first lien
Risk category
2023	0
2022	0
2021	8
2020	35
2019	108
Prior	53
Revolving Loans	0
Total	204
Residential Loan Portfolio \| Other residential
Risk category
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	10
Revolving Loans	57
Total	67
Consumer Loan Portfolio \| Consumer
Risk category
2023	0
2022	49
2021	23
2020	22
2019	37
Prior	36
Revolving Loans	0
Total	167
Consumer Loan Portfolio \| Consumer other
Risk category
2023	46
2022	101
2021	45
2020	19
2019	37
Prior	631
Revolving Loans	0
Total	879
Lease Loan Portfolio
Risk category
2023	669
2022	2,156
2021	1,172
2020	213
2019	542
Prior	274
Revolving Loans	0
Total	5,026	$ 1,297	$ 3,427
Loan Portfolios, Excluding Commercial
Risk category
2023	715
2022	2,306
2021	1,248
2020	289
2019	724
Prior	1,004
Revolving Loans	57
Total	$ 6,343

GOODWILL AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

The carrying amount of goodwill by segment at December 31, 2023 and December 31, 2022 is summarized as follows:


(dollars in thousands)	2023		2022
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, 2023 and December 31, 2022 are summarized as follows:


	December 31, 2023						December 31, 2022
(dollars in thousands)	Gross carrying amount		Accumulated amortization		Total		Gross carrying amount		Accumulated amortization		Total
Core deposit intangibles	$	58,914	$	(48,287)	$	10,627	$	58,913	$	(44,723)	$	14,190
Customer relationship intangibles	15,918		(10,437)		5,481		15,919		(9,243)		6,676
Total intangible assets	$	74,832	$	(58,724)	$	16,108	$	74,832	$	(53,966)	$	20,866

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,
2024	$	4,008
2025	3,224
2026	2,672
2027	2,101
2028	1,582
Thereafter	2,521
Total	$	16,108

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

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

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

Basis of Presentation

Subsequent Events

Management has evaluated subsequent events for recognition and disclosure through February 23, 2024, which is the date the financial statements were available to be issued.

Business Combinations

Cash and Cash Equivalents and Cash Flows

The following table summarizes supplemental cash flow information:


	Years Ended December 31,
(dollars in thousands)	2023		2022		2021
Supplemental disclosures of cash flow information:
Cash payments for:
Interest paid on deposits and borrowed funds	$	159,139	$	55,069	$	31,735
Income tax paid (net of refunds)	25,120		36,514		7,759
Supplemental disclosures of noncash investing and financing activities:
Transfer of loans to loans held for sale	—		103,357		123,117
Transfer of loans to other real estate owned	9,112		517		805
Transfer of premises and equipment, net to assets held for sale	—		—		23
Transfer of loan servicing rights, at lower of cost or market to loan servicing rights held for sale	—		23,995		705
Transfer of loan servicing rights held for sale to loan servicing rights, at lower of cost or market	20,745		—		—
Right of use assets obtained in exchange for lease obligations	2,470		502		1,118

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

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.

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

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.

Allowance for Credit Losses on Unfunded Commitments

Income Taxes

Share-Based Compensation Plans

Comprehensive Income

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

Principles of Consolidation

Accounting Guidance Adopted in 2023

Accounting Guidance Issued But Not Yet Adopted

EARNINGS PER COMMON SHARE (Tables)

12 Months Ended

Dec. 31, 2023

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 2023, 2022, and 2021:


	Years Ended December 31,
(dollars in thousands, except per share data)		2023		2022		2021
Net income		$	75,460	$	99,025	$	81,317
Preferred dividends declared		(8,913)		(3,169)		—

Net income available to common shareholders		66,547		95,856		81,317
Common shareholder dividends		(26,234)		(25,628)		(24,912)
Unvested restricted stock award dividends		(339)		(295)		(260)
Undistributed earnings to unvested restricted stock awards		(565)		(809)		(564)
Undistributed earnings to common shareholders		$	39,409	$	69,124	$	55,581
Basic
Distributed earnings to common shareholders		$	26,234	$	25,628	$	24,912
Undistributed earnings to common shareholders		39,409		69,124		55,581
Total common shareholders earnings, basic		$	65,643	$	94,752	$	80,493
Diluted
Distributed earnings to common shareholders		$	26,234	$	25,628	$	24,912
Undistributed earnings to common shareholders		39,409		69,124		55,581
Total common shareholders earnings		65,643		94,752		80,493
Add back:
Undistributed earnings reallocated from unvested restricted stock awards		—		2		2
Total common shareholders earnings, diluted		$	65,643	$	94,754	$	80,495
Weighted average common shares outstanding, basic		22,115,869		22,341,498		22,481,389
Options		8,533		54,200		65,964
Weighted average common shares outstanding, diluted		22,124,402		22,395,698		22,547,353
Basic earnings per common share		$	2.97	$	4.24	$	3.58
Diluted earnings per common share		2.97		4.23		3.57

Antidilutive stock options(1)		302,020		265,831		65,033

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net income	$ 75,460	$ 99,025	$ 81,317

- Definition

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

+ References

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+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Accrued interest receivable	$ 20,700,000	$ 17,000,000
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	$ 3,500,000	$ 1,900,000
Minimum
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Percentage cost of related equipment to unguaranteed residual values	3.00%
Other intangible assets amortized over a period	1 year
Maximum
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Percentage cost of related equipment to unguaranteed residual values	15.00%
Other intangible assets amortized over a period	20 years
Premises \| Minimum
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Estimated useful lives	10 years
Premises \| Maximum
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Estimated useful lives	40 years
Furniture and equipment \| Minimum
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Estimated useful lives	3 years
Furniture and equipment \| Maximum
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Estimated useful lives	10 years

PREFERRED STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Aug. 24, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)		115,000	115,000
Preferred stock, par value (in dollars per share)		$ 2.00	$ 2.00
Preferred stock, liquidation price (in dollars per share)		$ 1,000	$ 1,000
Proceeds from issuance of preferred stock		$ 0	$ 110,548	$ 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
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%

GOODWILL AND INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Finite-lived intangible assets
Gross carrying amount	$ 74,832	$ 74,832
Accumulated amortization	(58,724)	(53,966)
Total	16,108	20,866
Amortization of intangible assets	4,758	5,410	$ 5,855
Core deposit intangibles
Finite-lived intangible assets
Gross carrying amount	58,914	58,913
Accumulated amortization	(48,287)	(44,723)
Total	10,627	14,190
Customer relationship intangibles
Finite-lived intangible assets
Gross carrying amount	15,918	15,919
Accumulated amortization	(10,437)	(9,243)
Total	$ 5,481	$ 6,676

FHLB ADVANCES AND OTHER BORROWINGS

12 Months Ended

Dec. 31, 2023

FHLB ADVANCES AND OTHER BORROWINGS

FHLB ADVANCES AND OTHER BORROWINGS

The following table summarizes our FHLB advances and other borrowings as of December 31, 2023 and December 31, 2022:


(dollars in thousands)	December 31, 2023		December 31, 2022


FHLB advances – fixed rate, fixed term at rates averaging 4.94% at December 31, 2023 - maturing through February 2028	$	150,000	$	—
FHLB advances – putable fixed rate at rates averaging 3.07% and 2.35% at December 31, 2023 and December 31, 2022, respectively – maturing through October 2028 with call provisions through October 2024	160,000		110,000
FHLB advances –SOFR floater at rates averaging 5.92% at December 31, 2022 – matured October 2023	—		100,000
FHLB advances – Short term fixed rate at rates averaging 5.45% and 4.31% at December 31, 2023 and December 31, 2022, respectively– maturing through January 2024	166,000		250,000
Total FHLB advances and other borrowings	$	476,000	$	460,000

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 $2.98 billion and $2.90 billion at December 31, 2023 and December 31, 2022, 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,
2024	$	286,000
2025	40,000
2026	35,000
2027	—
2028	115,000

Total	$	476,000

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
Anticipated material loss	$ 0
Losses as a result of make whole requests and loan repurchases	0	$ 0	$ 0
Liability for unresolved repurchase demands	100,000	200,000
Commitments to extend credit
Loss Contingencies [Line Items]
Loan commitments	855,489,000	1,276,263,000
Financial guarantees – standby letters of credit
Loss Contingencies [Line Items]
Loan commitments	$ 22,745,000	$ 23,748,000

SHARE-BASED COMPENSATION - Stock option plan (Detail)	12 Months Ended
SHARE-BASED COMPENSATION - Stock option plan (Detail)	Dec. 31, 2023 $ / shares shares
Number of shares
Options outstanding, beginning of year (in shares)	415,572
Options granted (in shares)	0
Options exercised (in shares)	(42,437)
Options forfeited (in shares)	(30,179)
Options expired (in shares)	0
Options outstanding, end of year (in shares)	342,956
Options exercisable (in shares)	200,044
Options vested and expected to vest (in shares)	342,956
Weighted average exercise price
Options outstanding, beginning of year (in dollars per share) \| $ / shares	$ 25.81
Options exercised (in dollars per share) \| $ / shares	18.45
Options forfeited (in dollars per share) \| $ / shares	28.43
Options outstanding, end of year (in dollars per share) \| $ / shares	26.49
Options exercisable (in dollars per share) \| $ / shares	25.10
Options vested and expected to vest (in dollars per share) \| $ / shares	$ 26.49
Options outstanding, end of year (in years)	5 years 8 months 12 days
Options exercisable (in years)	3 years 6 months
Options vested and expected to vest (in years)	5 years 8 months 12 days

PARENT COMPANY ONLY FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2023

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,
	2023		2022
Assets:
Cash	$	7,763	$	2,721
Investment in subsidiaries	892,781		860,129


Note receivable due from bank subsidiary	30,000		40,000
Other assets	8,010		8,468
Total assets	$	938,554	$	911,318
Liabilities:
Subordinated debt	$	93,546	$	99,772
Trust preferred debentures	50,616		49,975



Other liabilities	2,539		2,997
Total liabilities	146,701		152,744
Shareholders’ equity	791,853		758,574
Total liabilities and shareholders’ equity	$	938,554	$	911,318


Condensed Statements of Income
(dollars in thousands)

	Years ended December 31,
	2023		2022		2021
Income
Dividends from subsidiaries	$	54,000	$	14,765	$	45,350
Earnings of consolidated subsidiaries, net of dividends	28,286		90,021		44,582
Interest income on note due from bank subsidiary	1,578		10		—
Other income	323		4		932
Total income	84,187		104,800		90,864
Interest expense	10,555		10,534		10,668
Other expense	1,044		1,625		984
Total expense	11,599		12,159		11,652
Income before income tax benefit	72,588		92,641		79,212
Income tax benefit	2,872		6,384		2,105
Net income	$	75,460	$	99,025	$	81,317


Condensed Statements of Cash Flows
(dollars in thousands)

	Years ended December 31,
	2023		2022		2021
Cash flows from operating activities:
Net income	$	75,460	$	99,025	$	81,317
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income of subsidiaries	(28,286)		(90,021)		(44,582)
Share-based compensation expense	2,489		2,211		1,938
Change in other assets	462		(373)		3,223
Change in other liabilities	(198)		1,639		763
Net cash provided by operating activities	49,927		12,481		42,659
Cash flows from investing activities:

Capital injection to bank subsidiary	—		(50,000)		—
Change in note receivable due from bank subsidiary	10,000		(40,000)		—
Net cash received in dissolution of subsidiary	2,674		—		2,003
Net cash provided by (used in) investing activities	12,674		(90,000)		2,003
Cash flows from financing activities:

Payments on other borrowings	—		(171)		—
Payments made on subordinated debt	(5,845)		(40,000)		(31,075)



Common stock repurchased	(17,898)		(1,109)		(11,692)

Cash dividends paid on common stock	(26,573)		(25,923)		(25,172)
Cash dividends paid on preferred stock	(8,913)		(3,169)		—
Proceeds from issuance of preferred stock	—		110,548		—
Proceeds from issuance of common stock under employee benefit plans	1,670		2,188		2,249
Net cash (used in) provided by financing activities	(57,559)		42,364		(65,690)
Net increase (decrease) in cash	5,042		(35,155)		(21,028)
Cash:
Beginning of period	2,721		37,876		58,904
End of period	$	7,763	$	2,721	$	37,876

The Bank has $30.0 million of borrowings from the parent as part of its strategy to manage FDIC insurance premiums. The note has a rolling 13 month maturity, and the interest rate is a variable rate equal to

LOANS - Aging Status of Recorded Investment (Details) - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Aging Status of recorded investment
Loans	$ 6,131,079	$ 6,306,467
Total nonaccrual	55,406	41,976
Nonperforming
Aging Status of recorded investment
Total nonaccrual	55,406	41,976
30-59 days past due \| Performing
Aging Status of recorded investment
Loans	50,675	17,328
60-89 days past due \| Performing
Aging Status of recorded investment
Loans	32,103	15,044
Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	945	1,173
Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	83,723	33,545
Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	5,991,950	6,230,946
Commercial Loan Portfolio
Aging Status of recorded investment
Loans	4,341,968	4,268,615
Total nonaccrual	42,431	35,882
Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	42,431	35,882
Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	35,597	7,123
Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	25,347	9,476
Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	781	0
Commercial Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	61,725	16,599
Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	4,237,812	4,216,134
Lease Loan Portfolio
Aging Status of recorded investment
Loans	473,350	491,744
Lease Loan Portfolio \| Performing
Aging Status of recorded investment
Loans	464,217	489,375
Lease Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Loans	9,133	2,369
Total nonaccrual	9,133	1,606
Lease Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	7,622	4,415
Lease Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	1,826	1,522
Lease Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	0	0
Lease Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	9,448	5,937
Lease Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	454,769	484,201
Commercial \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	825,938	786,877
Total nonaccrual	3,560	3,021
Commercial \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	3,560	3,021
Commercial \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	9,340	7
Commercial \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	504	112
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	9,844	119
Commercial \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	812,534	783,737
Commercial other \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	656,592	727,697
Total nonaccrual	4,941	3,169
Commercial other \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	4,941	3,169
Commercial other \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	11,156	6,035
Commercial other \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	5,990	2,365
Commercial other \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	781	0
Commercial other \| Commercial Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	17,927	8,400
Commercial other \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	633,724	716,128
Commercial real estate non-owner occupied \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	1,622,668	1,591,399
Total nonaccrual	15,712	13,244
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	15,712	13,244
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	384	1,008
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	0	999
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	384	2,007
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	1,606,572	1,576,148
Commercial real estate owner occupied \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	436,857	496,786
Total nonaccrual	10,776	7,118
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	10,776	7,118
Commercial real estate owner occupied \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	0	73
Commercial real estate owner occupied \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	0	0
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	0	73
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	426,081	489,595
Multi-family \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	279,904	277,889
Total nonaccrual	6,255	9,103
Multi-family \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	6,255	9,103
Multi-family \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	14,506	0
Multi-family \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	8,140	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	22,646	0
Multi-family \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	251,003	268,786
Farmland \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	67,416	67,085
Total nonaccrual	1,148	25
Farmland \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	1,148	25
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	120	0
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	120	0
Farmland \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	66,148	67,060
Construction and land development \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	452,593	320,882
Total nonaccrual	39	202
Construction and land development \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	39	202
Construction and land development \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	211	0
Construction and land development \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	10,593	6,000
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	10,804	6,000
Construction and land development \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	441,750	314,680
Residential first lien \| Residential Loan Portfolio
Aging Status of recorded investment
Loans	317,388	304,243
Total nonaccrual	3,073	3,497
Residential first lien \| Residential Loan Portfolio \| Performing
Aging Status of recorded investment
Loans	314,154	297,663
Residential first lien \| Residential Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Loans	3,234	6,580
Total nonaccrual	3,073	3,497
Residential first lien \| Residential Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	69	82
Residential first lien \| Residential Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	299	456
Residential first lien \| Residential Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	161	428
Residential first lien \| Residential Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	529	966
Residential first lien \| Residential Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	313,786	299,780
Other residential \| Residential Loan Portfolio
Aging Status of recorded investment
Loans	63,195	61,851
Total nonaccrual	635	871
Other residential \| Residential Loan Portfolio \| Performing
Aging Status of recorded investment
Loans	62,560	59,982
Other residential \| Residential Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Loans	635	1,869
Total nonaccrual	635	871
Other residential \| Residential Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	100	188
Other residential \| Residential Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	50	13
Other residential \| Residential Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	0	0
Other residential \| Residential Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	150	201
Other residential \| Residential Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	62,410	60,779
Consumer \| Consumer Loan Portfolio
Aging Status of recorded investment
Loans	107,743	105,880
Total nonaccrual	134	120
Consumer \| Consumer Loan Portfolio \| Performing
Aging Status of recorded investment
Loans	107,609	105,692
Consumer \| Consumer Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Loans	134	188
Total nonaccrual	134	120
Consumer \| Consumer Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	62	139
Consumer \| Consumer Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	20	18
Consumer \| Consumer Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	0	12
Consumer \| Consumer Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	82	169
Consumer \| Consumer Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	107,527	105,591
Consumer other \| Consumer Loan Portfolio
Aging Status of recorded investment
Loans	827,435	1,074,134
Consumer other \| Consumer Loan Portfolio \| Performing
Aging Status of recorded investment
Loans	827,432	1,073,401
Consumer other \| Consumer Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Loans	3	733
Total nonaccrual	0	0
Consumer other \| Consumer Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	7,225	5,381
Consumer other \| Consumer Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	4,561	3,559
Consumer other \| Consumer Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	3	733
Consumer other \| Consumer Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	11,789	9,673
Consumer other \| Consumer Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	815,646	1,064,461
Lease financing \| Lease Loan Portfolio
Aging Status of recorded investment
Total nonaccrual	$ 9,133	$ 1,606