0001466026-24-000035 | 10-Q | XBRL Viewer | Midland States Bancorp INC

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Jun. 30, 2024
BUSINESS DESCRIPTION [Abstract]
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; mortgage loan originations, sales and servicing; and, from time to time, gains on sales of assets. Our principal expenses include interest expense on deposits and borrowings, operating expenses, such as salaries and employee benefits, occupancy and equipment expenses, data processing costs, professional fees and other noninterest expenses, provisions for credit losses and income tax expense. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with GAAP and guidance provided by the SEC for interim financial information. Accordingly, the condensed financial statements do not include all of the information and footnotes required by GAAP for completed financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates. The consolidated financial statements of the Company should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 23, 2024. Certain reclassifications of 2023 amounts have been made to conform to the 2024 presentation. All significant transactions and accounts between subsidiaries have been eliminated. Assets held for customers in a fiduciary or agency capacity are not assets of the Company and, accordingly, other than trust cash on deposit with the Bank, are not included in the accompanying unaudited balance sheets. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or any other period. Accounting Guidance Adopted in 2024 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. The Company adopted this guidance on January 1, 2024 on a prospective basis. The adoption of this accounting pronouncement did not have a material impact on the consolidated financial statements. Accounting Guidance Not Yet Adopted FASB ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures - In December 2023, the FASB issued ASU No. 2023-07, which requires public entities to disclose significant segment expenses, an amount and description for other segment items, the title and position of the entity's chief operating decision maker and an explanation of how the chief operating decision maker uses the reported measures of profit or loss to assess segment performance, and, on an interim basis, certain segment related disclosures that previously were required only on an annual basis.The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company will update the related disclosures upon adoption. FASB ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures - In December 2023, the FASB issued ASU No. 2023-09, which requires public entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. The pronouncement also requires entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. The ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company will update the related disclosures upon adoption.

FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2024

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).

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 and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and nonrecurring basis at June 30, 2024 and December 31, 2023, are summarized below:


	June 30, 2024
(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	$	2,994	$	2,994	$	—	$	—
U.S. government sponsored entities and U.S. agency securities	50,831		—		50,831		—
Mortgage-backed securities - agency	704,176		—		704,176		—
Mortgage-backed securities - non-agency	86,182		—		86,182		—
State and municipal securities	66,151		—		66,151		—
Corporate securities	84,799		—		84,799		—
Other securities	99,958		—		99,958		—
Equity securities	4,563		4,563		—		—
Loans held for sale	5,555		—		5,555		—
Derivative assets	1,714		—		1,714		—

Total	$	1,106,923	$	7,557	$	1,099,366	$	—
Liabilities
Derivative liabilities	$	8,192	$	—	$	8,192	$	—

Total	$	8,192	$	—	$	8,192	$	—

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


Nonperforming loans	$	68,437	$	—	$	64,167	$	4,270
Other real estate owned	8,304		—		8,304		—


	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		—
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		—

The following table presents losses recognized on assets measured on a nonrecurring basis for the three and six months ended June 30, 2024 and 2023:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2024		2023		2024		2023


Nonperforming loans	$	3,647	$	3,573	13,870		4,676
Other real estate owned	730		—		730		—

Total losses on assets measured on a nonrecurring basis	$	4,377	$	3,573	$	14,600	$	4,676

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 June 30, 2024 and December 31, 2023:

(dollars in thousands)

Fair value

Valuation
technique

Unobservable
input / assumptions

Range (weighted average)(1)

June 30, 2024

Nonperforming loans

4,270

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

19.32% - 25.69% (22.72%)

December 31, 2023

Nonperforming loans

669

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

24.38% - 100.00% (27.46%)

(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 June 30, 2024 and December 31, 2023:


	June 30, 2024						December 31, 2023
(dollars in thousands)	Aggregate fair value		Difference		Contractual principal		Aggregate fair value		Difference		Contractual principal

Residential loans held for sale	$	5,555	$	251	$	5,304	$	3,811	$	203	$	3,608

The following table presents the amount of gains from fair value changes included in income before income taxes for financial assets carried at fair value for the three and six months ended June 30, 2024 and 2023:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2024		2023		2024	2023

Residential loans held for sale	$	(1)	$	50	17	149

The carrying values and estimated fair value of certain financial instruments not carried at fair value at June 30, 2024 and December 31, 2023 were as follows:


	June 30, 2024
(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	$	123,719	$	123,719	$	123,719	$	—	$	—
Federal funds sold	927		927		927		—		—

Loans	5,851,994		5,741,200		—		—		5,741,200
Accrued interest receivable	25,756		25,756		—		25,756		—

Liabilities
Deposits	$	6,118,023	$	6,098,416	$	—	$	6,098,416	$	—
Short-term borrowings	7,208		7,208		—		7,208		—
FHLB and other borrowings	600,000		598,416		—		598,416		—
Subordinated debt	91,656		84,135		—		84,135		—
Trust preferred debentures	50,921		53,848		—		53,848		—


	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		—

The methods utilized to measure fair value of financial instruments at June 30, 2024 and December 31, 2023 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

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+ Details

DERIVATIVE INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Commercial FHA
Derivative disclosures
Net gains (losses) on derivative instruments	$ 0.1	$ 0.1	$ 0.1
Interest rate swap contracts
Derivative disclosures
Notional amount of interest rate swaps		6.7		$ 6.9
Interest rate swap contracts \| Other liabilities
Derivative disclosures
Fair value of offsetting counterparty derivative instruments		$ 0.4		$ 0.3

LOANS - Summary of Loans and Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Summary of loans
Loans	$ 5,851,994		$ 5,851,994		$ 6,131,079
Net deferred loan fees	2,900		2,900		3,800
Unearned income	59,600		59,600		66,400
Loans held for sale	5,555		5,555		3,811
Proceeds from sales of loans held for sale			45,807	$ 34,344
Commercial Loan Portfolio
Summary of loans
Loans	4,298,900		4,298,900		4,341,968
Lease financing
Summary of loans
Loans	428,659		428,659		473,350
Consumer Loans and Commercial Leases
Summary of loans
Proceeds from sales of loans held for sale	28,200	$ 28,000	45,800	$ 34,300
Commercial \| Commercial Loan Portfolio
Summary of loans
Loans	829,888		829,888		825,938
Commercial other \| Commercial Loan Portfolio
Summary of loans
Loans	570,979		570,979		656,592
Commercial real estate non-owner occupied \| Commercial Loan Portfolio
Summary of loans
Loans	1,621,102		1,621,102		1,622,668
Commercial real estate owner occupied \| Commercial Loan Portfolio
Summary of loans
Loans	438,117		438,117		436,857
Multi-family \| Commercial Loan Portfolio
Summary of loans
Loans	293,863		293,863		279,904
Farmland \| Commercial Loan Portfolio
Summary of loans
Loans	68,423		68,423		67,416
Construction and land development \| Commercial Loan Portfolio
Summary of loans
Loans	476,528		476,528		452,593
Residential first lien \| Residential Loan Portfolio
Summary of loans
Loans	315,039		315,039		317,388
Other residential \| Residential Loan Portfolio
Summary of loans
Loans	63,354		63,354		63,195
Consumer \| Consumer Loan Portfolio
Summary of loans
Loans	94,763		94,763		107,743
Consumer other \| Consumer Loan Portfolio
Summary of loans
Loans	$ 651,279		$ 651,279		$ 827,435

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Assets
Cash and due from banks	$ 123,719	$ 134,212
Federal funds sold	927	849
Cash and cash equivalents	124,646	135,061
Investment securities available for sale, at fair value	1,095,091	915,895
Equity securities, at fair value	4,563	4,501
Loans	5,851,994	6,131,079
Allowance for credit losses on loans	(92,183)	(68,502)
Total loans, net	5,759,811	6,062,577
Loans held for sale	5,555	3,811
Premises and equipment, net	83,040	82,814
Other real estate owned	8,304	9,112
Nonmarketable equity securities	49,001	43,421
Accrued interest receivable	25,756	24,934
Loan servicing rights, at lower of cost or fair value	18,902	20,253
Goodwill	161,904	161,904
Other intangible assets, net	14,003	16,108
Company-owned life insurance	207,211	203,485
Other assets	199,487	182,992
Total assets	7,757,274	7,866,868
Deposits:
Noninterest-bearing demand deposits	1,108,521	1,145,395
Interest-bearing deposits	5,009,502	5,164,134
Total deposits	6,118,023	6,309,529
Short-term borrowings	7,208	34,865
Federal Home Loan Bank advances and other borrowings	600,000	476,000
Subordinated debt	91,656	93,546
Trust preferred debentures	50,921	50,616
Accrued interest payable and other liabilities	103,694	110,459
Total liabilities	6,971,502	7,075,015
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 June 30, 2024 and December 31, 2023, respectively	110,548	110,548
Common stock, $0.01 par value; 40,000,000 shares authorized; 21,377,215 and 21,551,402 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	214	216
Capital surplus	432,569	435,463
Retained earnings	325,022	322,379
Accumulated other comprehensive loss, net of tax	(82,581)	(76,753)
Total shareholders’ equity	785,772	791,853
Total liabilities and shareholders’ equity	$ 7,757,274	$ 7,866,868

FHLB ADVANCES AND OTHER BORROWINGS - Summary of FHLB Advances (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 600,000	$ 476,000
FHLB advances, collateral for mortgage and home equity line of credit loans	2,940,000	2,980,000
Midland States Bank \| Fixed rate fixed term maturing April 2029
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 150,000	$ 150,000
Interest rate	4.79%	4.94%
Midland States Bank \| Putable fixed rate maturing through May 2029
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 130,000	$ 160,000
Interest rate	3.34%	3.07%
Midland States Bank \| Short term fixed rate matured July 2024
FHLB ADVANCES AND OTHER BORROWINGS
Total FHLB advances and other borrowings	$ 320,000	$ 166,000
Interest rate	5.41%	5.45%

SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

SEGMENT INFORMATION

The Company's reportable segments are comprised of strategic business units primarily based upon industry categories and, to a lesser extent, the core competencies relating to product origination, distribution methods, operations and servicing. Segment determination also considers organizational structure and is consistent with the presentation of financial information to the chief operating decision maker to evaluate segment performance, develop strategy and allocate resources. The Company's chief operating decision maker is the Chief Executive Officer of the Company. Management has determined that the Company has three reportable segments consisting of Banking, Wealth Management and Corporate.

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 Corporate segment includes the holding company financing and investment activities, administrative expenses, as well as the elimination of intercompany transactions. The Corporate segment also included our captive insurance business unit for the six months ended June 30, 2023. This business was dissolved as of December 31, 2023.

Reported segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. Changes in management structure or allocation methodologies and procedures may result in future changes to previously reported segment financial data. The accounting policies of the segments are substantially the same as those described in the “Summary of Significant Accounting Policies” in Note 1 of the Company’s 2023 Form 10-K.

Transactions between segments consist primarily of borrowed funds and servicing fees. Noninterest income and expense directly attributable to a segment are assigned to it with various shared service costs such as human resources, accounting, finance, risk management and information technology expense assigned to the Banking segment.

Selected business segment financial information for the three and six months ended June 30, 2024 and 2023 were as follows:


(dollars in thousands)	Banking		Wealth Management		Corporate		Total
Three Months Ended June 30, 2024
Net interest income (expense)	$	57,223	$	(12)	$	(2,159)	$	55,052
Provision for credit losses	16,800		—		—		16,800
Noninterest income	10,875		6,801		(20)		17,656
Noninterest expense	42,792		5,342		(655)		47,479
Income (loss) before income taxes (benefit)	8,506		1,447		(1,524)		8,429
Income taxes (benefit)	1,704		618		(643)		1,679
Net income (loss)	$	6,802	$	829	$	(881)	$	6,750
Total assets	$	7,734,375	$	34,940	$	(12,041)	$	7,757,274

Six Months Ended June 30, 2024
Net interest income (expense)	$	115,439	$	(20)	$	(4,447)	$	110,972
Provision for credit losses	30,800		—		—		30,800
Noninterest income	25,366		13,933		(456)		38,843
Noninterest expense	82,890		10,754		(1,298)		92,346
Income (loss) before income taxes (benefit)	27,115		3,159		(3,605)		26,669
Income taxes (benefit)	6,165		1,308		(1,439)		6,034
Net income (loss)	$	20,950	$	1,851	$	(2,166)	$	20,635
Total assets	$	7,734,375	$	34,940	$	(12,041)	$	7,757,274

Three Months Ended June 30, 2023
Net interest income (expense)	$	61,035	$	—	$	(2,195)	$	58,840
Provision for credit losses	5,879		—		—		5,879
Noninterest income	11,874		6,269		610		18,753
Noninterest expense	38,550		4,675		(331)		42,894
Income (loss) before income taxes (benefit)	28,480		1,594		(1,254)		28,820
Income taxes (benefit)	7,326		445		(526)		7,245
Net income (loss)	$	21,154	$	1,149	$	(728)	$	21,575
Total assets	$	8,025,617	$	30,249	$	(21,145)	$	8,034,721

Six Months Ended June 30, 2023
Net interest income (expense)	$	123,643	$	—	$	(4,299)	$	119,344
Provision for credit losses	9,014		—		—		9,014
Noninterest income	21,495		12,680		357		34,532
Noninterest expense	78,397		9,516		(537)		87,376
Income (loss) before income taxes (benefit)	57,727		3,164		(3,405)		57,486
Income taxes (benefit)	14,532		884		(1,277)		14,139
Net income (loss)	$	43,195	$	2,280	$	(2,128)	$	43,347
Total assets	$	8,025,617	$	30,249	$	(21,145)	$	8,034,721

- 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.

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+ Details

FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying values and fair value (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Assets
Accrued interest receivable	$ 25,756	$ 24,934
Liabilities
Trust preferred debentures	50,921	50,616
Level 1
Assets
Cash and due from banks	123,719	134,212
Federal funds sold	927	849
Loans	0	0
Accrued interest receivable	0	0
Liabilities
Deposits	0	0
Short-term borrowings	0	25,000
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	25,756	24,934
Liabilities
Deposits	6,098,416	6,294,979
Short-term borrowings	7,208	9,865
FHLB and other borrowings	598,416	475,240
Subordinated debt	84,135	90,253
Trust preferred debentures	53,848	51,626
Level 3
Assets
Cash and due from banks	0	0
Federal funds sold	0	0
Loans	5,741,200	6,129,244
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	123,719	134,212
Federal funds sold	927	849
Loans	5,851,994	6,131,079
Accrued interest receivable	25,756	24,934
Liabilities
Deposits	6,118,023	6,309,529
Short-term borrowings	7,208	34,865
FHLB and other borrowings	600,000	476,000
Subordinated debt	91,656	93,546
Trust preferred debentures	50,921	50,616
Fair value
Assets
Cash and due from banks	123,719	134,212
Federal funds sold	927	849
Loans	5,741,200	6,129,244
Accrued interest receivable	25,756	24,934
Liabilities
Deposits	6,098,416	6,294,979
Short-term borrowings	7,208	34,865
FHLB and other borrowings	598,416	475,240
Subordinated debt	84,135	90,253
Trust preferred debentures	$ 53,848	$ 51,626

INVESTMENT SECURITIES

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

Investment Securities Available for Sale

Investment securities available for sale at June 30, 2024 and December 31, 2023 were as follows:


	June 30, 2024
(dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities available for sale
U.S. Treasury securities	$	2,995	$	—	$	1	$	2,994
U.S. government sponsored entities and U.S. agency securities	52,440		131		1,740		50,831
Mortgage-backed securities - agency	790,311		882		87,017		704,176
Mortgage-backed securities - non-agency	89,379		596		3,793		86,182
State and municipal securities	73,063		160		7,072		66,151
Corporate securities	93,459		12		8,672		84,799
Other securities(1)	99,982		113		137		99,958
Total available for sale securities	$	1,201,629	$	1,894	$	108,432	$	1,095,091

(1)The fair value of other securities includes student loan asset backed securities of $63.5 million and structured financial products of $36.5 million.


	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
Corporate securities	109,598		41		10,467		99,172
Other securities(1)	27,646		3		84		27,565
Total available for sale securities	$	1,012,592	$	3,217	$	99,914	$	915,895

(1)The fair value of other securities includes structured financial products of $27.6 million.

The following is a summary of the amortized cost and fair value of the investment securities available for sale, by maturity, at June 30, 2024. 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	$	4,031	$	4,020
After one year through five years	72,993		70,366
After five years through ten years	150,875		138,034
After ten years	94,040		92,313
Mortgage-backed securities	879,690		790,358
Total available for sale securities	$	1,201,629	$	1,095,091

Proceeds and gross realized gains and losses on sales of investment securities available for sale for the three and six months ended June 30, 2024 and 2023 are summarized as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2024		2023		2024		2023
Investment securities available for sale
Proceeds from sales	$	45,825	$	15,467	$	45,825	$	99,960
Gross realized gains on sales	307		—		307		338
Gross realized losses on sales	(459)		(869)		(459)		(1,855)

Unrealized losses and fair values for investment securities available for sale as of June 30, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are summarized as follows:


	June 30, 2024
	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	$	2,994	$	1	$	—	$	—	$	2,994	$	1
U.S. government sponsored entities and U.S. agency securities	36,004		86		8,346		1,654		44,350		1,740
Mortgage-backed securities - agency	189,165		5,139		404,360		81,878		593,525		87,017
Mortgage-backed securities - non-agency	12,911		183		18,476		3,610		31,387		3,793
State and municipal securities	57,644		6,845		1,387		227		59,031		7,072
Corporate securities	26,780		2,554		55,007		6,118		81,787		8,672
Other securities	65,687		137		—		—		65,687		137
Total available for sale securities	$	391,185	$	14,945	$	487,576	$	93,487	$	878,761	$	108,432


	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
Corporate securities	4,688		53		84,662		10,414		89,350		10,467
Other securities	14,763		84		—		—		14,763		84
Total available for sale securities	$	252,732	$	13,713	$	460,879	$	86,201	$	713,611	$	99,914

At June 30, 2024, 296 investment securities available for sale had unrealized losses with aggregate depreciation of 10.98% 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.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income	$ 6,750	$ 21,575	$ 20,635	$ 43,347

- 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

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value option and gains and losses from fair value changes (Details) - Residential Loan Portfolio - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Fair Value, Option, Quantitative Disclosures [Line Items]
Aggregate fair value	$ 5,555		$ 5,555		$ 3,811
Difference	251		251		203
Contractual principal	5,304		5,304		$ 3,608
Gains and losses from fair value changes
Residential loans held for sale	$ (1)	$ 50	$ 17	$ 149

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY—(UNAUDITED) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]
Common dividend declared, per share (in dollars per share)	$ 0.31	$ 0.30	$ 0.62	$ 0.60
Preferred dividend declared, per share (in dollars per share)	$ 19.375	$ 19.375	$ 38.75	$ 38.75

PREMISES, EQUIPMENT AND LEASES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Depreciation on premises and equipment	$ 1,200	$ 1,200	$ 2,478	$ 2,419
Renewal term of lease (in years)	10 years		10 years
Operating lease right-of-use asset	$ 8,400		$ 8,400		$ 7,700
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Premises and equipment, net		Premises and equipment, net		Premises and equipment, net
Operating lease liabilities	$ 9,851		$ 9,851		$ 9,300
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Accrued interest payable and other liabilities		Accrued interest payable and other liabilities		Accrued interest payable and other liabilities
Minimum
Property, Plant and Equipment [Line Items]
Remaining lease terms	6 months		6 months
Maximum
Property, Plant and Equipment [Line Items]
Remaining lease terms	14 years		14 years

PREMISES, EQUIPMENT AND LEASES

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

PREMISES, EQUIPMENT AND LEASES

A summary of premises, equipment and leases at June 30, 2024 and December 31, 2023 is as follows:


	June 30,		December 31,
(dollars in thousands)	2024		2023
Land	$	15,968	$	15,968
Buildings and improvements	79,431		78,104
Furniture and equipment	35,766		35,797
Lease right-of-use assets	8,409		7,673
Total	139,574		137,542
Accumulated depreciation	(56,534)		(54,728)
Premises and equipment, net	$	83,040	$	82,814

Depreciation expense for the three and six months ended June 30, 2024 was $1.2 million and $2.5 million, respectively, and $1.2 million and $2.4 million for the three and six months ended June 30, 2023, respectively.

The Company has entered into operating leases, primarily for banking offices and operating facilities, which have remaining lease terms of 6 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 $8.4 million and $7.7 million as of June 30, 2024 and December 31, 2023, respectively, included in premises and equipment on our consolidated balance sheets. The operating lease liabilities of the Company were $9.9 million and $9.3 million as of June 30, 2024 and December 31, 2023, respectively, and are included in accrued interest payable and other liabilities on our consolidated balance sheets.

Information related to operating leases for the three and six months ended June 30, 2024 and 2023 was as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2024			2023			2024			2023
Operating lease cost	$	481		$	493		$	957		$	977
Operating cash flows from leases	577			590			1,149			1,180
Right-of-use assets obtained in exchange for lease obligations	1,317			218			1,539			1,348

Weighted average remaining lease term	7.37 years			8.0 years			7.37 years			8.0 years
Weighted average discount rate	3.58		%	3.29		%	3.58		%	3.29		%

The projected minimum rental payments under the terms of the leases as of June 30, 2024 were as follows:


(dollars in thousands)	Amount
Year ending December 31:
2024 remaining	$	971
2025	1,652
2026	1,555
2027	1,413
2028	1,359
Thereafter	4,328
Total future minimum lease payments	11,278
Less imputed interest	(1,427)
Total operating lease liabilities	$	9,851

DEPOSITS - Summary of Classification of Deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Classification of deposits
Noninterest-bearing demand	$ 1,108,521	$ 1,145,395
Interest-bearing:
Checking	2,343,533	2,511,840
Money market	1,143,668	1,135,629
Savings	538,462	559,267
Time	983,839	957,398
Total deposits	$ 6,118,023	$ 6,309,529

LOANS - Loan Restructuring (Details) $ in Thousands	3 Months Ended		6 Months Ended
LOANS - Loan Restructuring (Details) $ in Thousands	Jun. 30, 2024 USD ($) loan	Jun. 30, 2023 USD ($) loan	Jun. 30, 2024 USD ($) loan	Jun. 30, 2023 USD ($) loan
Summary of loans
Balance \| $	$ 9,206	$ 500	$ 10,668	$ 600
Count \| loan	19	3	26	5
Interest Rate Reduction
Summary of loans
Balance \| $	$ 480	$ 0	$ 480	$ 0
Count \| loan	2	0	2	0
Term Extension
Summary of loans
Balance \| $	$ 2,209	$ 500	$ 3,671	$ 600
Count \| loan	14	3	21	5
Forgiveness of Principal or Interest
Summary of loans
Balance \| $	$ 0	$ 0	$ 0	$ 0
Count \| loan	0	0	0	0
Other
Summary of loans
Balance \| $	$ 6,517	$ 0	$ 6,517	$ 0
Count \| loan	3	0	3	0
Commercial Loan Portfolio
Summary of loans
Balance \| $	$ 7,617	$ 500	$ 8,363	$ 600
Count \| loan	9	3	13	5
Commercial Loan Portfolio \| Commercial other
Summary of loans
Balance \| $	$ 1,161	$ 500	$ 1,907	$ 600
Count \| loan	8	3	12	5
Commercial Loan Portfolio \| Commercial real estate non-owner occupied
Summary of loans
Balance \| $	$ 6,456	$ 0	$ 6,456	$ 0
Count \| loan	1	0	1	0
Residential Loan Portfolio \| Residential first lien
Summary of loans
Balance \| $	$ 66	$ 0	$ 66	$ 0
Count \| loan	1	0	1	0
Residential Loan Portfolio \| Other residential
Summary of loans
Balance \| $	$ 81	$ 0	$ 81	$ 0
Count \| loan	2	0	2	0
Consumer Loan Portfolio \| Consumer
Summary of loans
Balance \| $	$ 26	$ 0	$ 26	$ 0
Count \| loan	1	0	1	0
Lease financing
Summary of loans
Balance \| $	$ 1,416	$ 0	$ 2,132	$ 0
Count \| loan	6	0	9	0

SUBORDINATED DEBT - Subordinated Debt (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Subordinated Borrowing [Line Items]
Outstanding amount	$ 92,000	$ 94,000
Carrying amount	91,656	93,546
5.00% Subordinated Debt
Subordinated Borrowing [Line Items]
Outstanding amount	64,750	66,750
Carrying amount	$ 64,663	$ 66,573
Current rate	5.00%	5.00%
Variable rate	3.61%
5.50% Subordinated Debt
Subordinated Borrowing [Line Items]
Outstanding amount	$ 27,250	$ 27,250
Carrying amount	$ 26,993	$ 26,973
Current rate	5.50%	5.50%
Variable rate	4.05%

DEPOSITS

6 Months Ended

Jun. 30, 2024

Deposits [Abstract]

DEPOSITS

The following table summarizes the classification of deposits as of June 30, 2024 and December 31, 2023:


(dollars in thousands)	June 30, 2024		December 31, 2023
Noninterest-bearing demand	$	1,108,521	$	1,145,395
Interest-bearing:
Checking	2,343,533		2,511,840
Money market	1,143,668		1,135,629
Savings	538,462		559,267
Time	983,839		957,398
Total deposits	$	6,118,023	$	6,309,529

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2024	Jul. 26, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		21,393,260
Entity Central Index Key	0001466026
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
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

LOANS - Impaired Loans with Interest Recognized (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Interest income :
Interest income recognized on nonaccrual loans	$ 0	$ 0	$ 0	$ 0
Additional interest income that would have been recorded had they been current	$ 2,300,000	$ 800,000	$ 3,600,000	$ 1,600,000

LOANS - Gross Writeoffs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
LOANS - Gross Writeoffs (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Risk category
Total	$ 5,256	$ 4,034	$ 10,292	$ 6,433
Commercial Loan Portfolio
Risk category
2024	0		0
2023	1,054		1,920
2022	937		2,011
2021	877		1,171
2020	3		171
Prior	102		698
Revolving Loans	0		103
Total	2,973		6,074
Commercial Loan Portfolio \| Commercial
Risk category
2024	0		0
2023	475		475
2022	0		0
2021	750		750
2020	0		10
Prior	14		14
Revolving Loans	0		103
Total	1,239		1,352
Commercial Loan Portfolio \| Commercial other
Risk category
2024	0		0
2023	579		1,445
2022	937		2,011
2021	127		421
2020	3		23
Prior	83		126
Revolving Loans	0		0
Total	1,729		4,026
Commercial Loan Portfolio \| Commercial real estate non-owner occupied
Risk category
2024	0		0
2023	0		0
2022	0		0
2021	0		0
2020	0		138
Prior	5		558
Revolving Loans	0		0
Total	5		696
Residential Loan Portfolio \| Residential first lien
Risk category
2024	0		0
2023	0		0
2022	0		11
2021	0		0
2020	0		0
Prior	0		0
Revolving Loans	0		0
Total	0		11
Residential Loan Portfolio \| Other residential
Risk category
2024	0		0
2023	0		0
2022	0		16
2021	0		0
2020	0		0
Prior	0		0
Revolving Loans	0		8
Total	0		24
Consumer Loan Portfolio \| Consumer
Risk category
2024	0		0
2023	22		21
2022	0		0
2021	5		5
2020	10		17
Prior	0		27
Revolving Loans	1		1
Total	38		71
Consumer Loan Portfolio \| Consumer other
Risk category
2024	1		1
2023	0		0
2022	0		0
2021	0		0
2020	0		0
Prior	160		362
Revolving Loans	0		0
Total	161		363
Lease financing
Risk category
2024	0		0
2023	946		1,069
2022	900		2,270
2021	223		338
2020	15		52
Prior	0		20
Revolving Loans	0		0
Total	2,084	$ 771	3,749	$ 1,161
Loan Portfolios, Excluding Commercial
Risk category
2024	1		1
2023	968		1,090
2022	900		2,297
2021	228		343
2020	25		69
Prior	160		409
Revolving Loans	1		9
Total	$ 2,283		$ 4,218

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		6 Months Ended
SEGMENT INFORMATION (Details) $ in Thousands	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) segment	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment			3
Net interest income (expense)	$ 55,052	$ 58,840	$ 110,972	$ 119,344
Provision for credit losses	16,800	5,879	30,800	9,014
Noninterest income	17,656	18,753	38,843	34,532
Noninterest expense	47,479	42,894	92,346	87,376
Income before income taxes	8,429	28,820	26,669	57,486
Income taxes (benefit)	1,679	7,245	6,034	14,139
Net income	6,750	21,575	20,635	43,347
Total assets	7,757,274	8,034,721	7,757,274	8,034,721	$ 7,866,868
Banking
Segment Reporting Information [Line Items]
Net interest income (expense)	57,223	61,035	115,439	123,643
Provision for credit losses	16,800	5,879	30,800	9,014
Noninterest income	10,875	11,874	25,366	21,495
Noninterest expense	42,792	38,550	82,890	78,397
Income before income taxes	8,506	28,480	27,115	57,727
Income taxes (benefit)	1,704	7,326	6,165	14,532
Net income	6,802	21,154	20,950	43,195
Total assets	7,734,375	8,025,617	7,734,375	8,025,617
Wealth management
Segment Reporting Information [Line Items]
Net interest income (expense)	(12)	0	(20)	0
Provision for credit losses	0	0	0	0
Noninterest income	6,801	6,269	13,933	12,680
Noninterest expense	5,342	4,675	10,754	9,516
Income before income taxes	1,447	1,594	3,159	3,164
Income taxes (benefit)	618	445	1,308	884
Net income	829	1,149	1,851	2,280
Total assets	34,940	30,249	34,940	30,249
Corporate
Segment Reporting Information [Line Items]
Net interest income (expense)	(2,159)	(2,195)	(4,447)	(4,299)
Provision for credit losses	0	0	0	0
Noninterest income	(20)	610	(456)	357
Noninterest expense	(655)	(331)	(1,298)	(537)
Income before income taxes	(1,524)	(1,254)	(3,605)	(3,405)
Income taxes (benefit)	(643)	(526)	(1,439)	(1,277)
Net income	(881)	(728)	(2,166)	(2,128)
Total assets	$ (12,041)	$ (21,145)	$ (12,041)	$ (21,145)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME—(UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 6,750	$ 21,575	$ 20,635	$ 43,347
Investment securities available for sale:
Unrealized losses that occurred during the period	(2,956)	(8,020)	(9,993)	(2,656)
Reclassification adjustment for realized net losses on sales of investment securities included in net income	152	869	152	1,517
Income tax effect	757	1,930	2,657	308
Change in investment securities available for sale, net of tax	(2,047)	(5,221)	(7,184)	(831)
Cash flow hedges:
Net unrealized derivative gains (losses) on cash flow hedges	1,214	(2,331)	1,858	(125)
Income tax effect	(329)	630	(502)	34
Change in cash flow hedges, net of tax	885	(1,701)	1,356	(91)
Other comprehensive loss, net of tax	(1,162)	(6,922)	(5,828)	(922)
Total comprehensive income	$ 5,588	$ 14,653	$ 14,807	$ 42,425

FAIR VALUE OF FINANCIAL INSTRUMENTS - Quantitative Information (Details) - Non recurring member $ in Thousands	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	$ 68,437	$ 4,633
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	4,270	669
Level 3 \| Collateral based measurements \| Nonperforming loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	$ 4,270	$ 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	0.1932	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	0.2569	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	0.2272	0.2746

LOANS (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Schedule of Loans

The following table presents total loans outstanding by portfolio class, as of June 30, 2024 and December 31, 2023:


(dollars in thousands)	June 30, 2024		December 31, 2023
Commercial:
Commercial	$	829,888	$	825,938
Commercial other	570,979		656,592
Commercial real estate:
Commercial real estate non-owner occupied	1,621,102		1,622,668
Commercial real estate owner occupied	438,117		436,857
Multi-family	293,863		279,904
Farmland	68,423		67,416
Construction and land development	476,528		452,593
Total commercial loans	4,298,900		4,341,968
Residential real estate:
Residential first lien	315,039		317,388
Other residential	63,354		63,195
Consumer:
Consumer	94,763		107,743
Consumer other	651,279		827,435
Lease financing	428,659		473,350
Total loans	$	5,851,994	$	6,131,079

Schedule of Changes in Financing Receivable Related Parties Roll Forward

The new loans, other additions, repayments and other reductions for the three and six months ended June 30, 2024 and 2023, are summarized as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2024		2023		2024		2023
Beginning balance	$	20,726	$	19,519	$	20,990	$	19,776
New loans and other additions	500		2,367		500		2,367
Repayments and other reductions	(332)		(317)		(596)		(574)
Ending balance	$	20,894	$	21,569	$	20,894	$	21,569

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

The following table represents, by loan portfolio segment, a summary of changes in the allowance for credit losses on loans for the three and six months ended June 30, 2024 and 2023:


	Commercial Loan Portfolio						Other Loan Portfolio
(dollars in thousands)	Commercial		Commercial real estate		Construction and land development		Residential real estate		Consumer		Lease financing		Total
Changes in allowance for credit losses on loans for the three months ended June 30, 2024:
Balance, beginning of period	$	21,329	$	21,367	$	12,629	$	5,655	$	3,611	$	13,466	$	78,057
Provision for credit losses on loans	5,733		(1,253)		336		(475)		10,817		1,842		17,000
Charge-offs	(2,968)		(5)		—		—		(199)		(2,084)		(5,256)
Recoveries	153		2,088		1		13		63		64		2,382
Balance, end of period	$	24,247	$	22,197	$	12,966	$	5,193	$	14,292	$	13,288	$	92,183

Changes in allowance for credit losses on loans for the six months ended June 30, 2024:
Balance, beginning of period	$	21,847	$	20,229	$	4,163	$	5,553	$	3,770	$	12,940	$	68,502
Provision for credit losses on loans	7,509		424		8,802		(393)		10,806		3,852		31,000
Charge-offs	(5,378)		(696)		—		(35)		(434)		(3,749)		(10,292)
Recoveries	269		2,240		1		68		150		245		2,973
Balance, end of period	$	24,247	$	22,197	$	12,966	$	5,193	$	14,292	$	13,288	$	92,183

Changes in allowance for credit losses on loans for the three months ended June 30, 2023:
Balance, beginning of period	$	15,762	$	28,216	$	2,442	$	4,350	$	4,129	$	7,168	$	62,067
Provision for credit losses on loans	196		2,427		1,049		1,207		4		996		5,879
Charge-offs	(1,071)		(1,544)		(334)		(54)		(260)		(771)		(4,034)
Recoveries	403		326		32		48		80		149		1,038
Balance, end of period	$	15,290	$	29,425	$	3,189	$	5,551	$	3,953	$	7,542	$	64,950

Changes in allowance for credit losses on loans for the six months ended June 30, 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	2,194		2,097		1,056		1,270		704		1,693		9,014
Charge-offs	(2,040)		(2,290)		(334)		(85)		(523)		(1,161)		(6,433)
Recoveries	497		328		32		65		173		223		1,318
Balance, end of period	$	15,290	$	29,425	$	3,189	$	5,551	$	3,953	$	7,542	$	64,950

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 June 30, 2024 and December 31, 2023:


	June 30, 2024						December 31, 2023
(dollars in thousands)	Nonaccrual with allowance		Nonaccrual with no allowance		Total nonaccrual		Nonaccrual with allowance		Nonaccrual with no allowance		Total nonaccrual
Commercial:
Commercial	$	6,329	$	—	$	6,329	$	3,560	$	—	$	3,560
Commercial other	7,874		—		7,874		4,941		—		4,941
Commercial real estate:
Commercial real estate non-owner occupied	13,061		7,648		20,709		1,614		14,098		15,712
Commercial real estate owner occupied	10,827		—		10,827		4,276		6,500		10,776
Multi-family	3,547		16,997		20,544		240		6,015		6,255
Farmland	1,301		—		1,301		1,148		—		1,148
Construction and land development	15,724		10,594		26,318		39		—		39
Total commercial loans	58,663		35,239		93,902		15,818		26,613		42,431
Residential real estate:
Residential first lien	3,285		455		3,740		2,583		490		3,073
Other residential	609		—		609		635		—		635
Consumer:
Consumer	77		—		77		134		—		134

Lease financing	12,115		15		12,130		9,097		36		9,133
Total loans	$	74,749	$	35,709	$	110,458	$	28,267	$	27,139	$	55,406

The following table represents, by loan portfolio segment, a summary of the loan restructuring for the three and six months ended June 30, 2024 and 2023:


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
(dollars in thousands)	Balance		Count	Balance		Count	Balance		Count	Balance		Count
Commercial:

Commercial other	$	1,161	8	$	500	3	$	1,907	12	$	600	5
Commercial real estate:
Commercial real estate non-owner occupied	6,456		1	—		—	6,456		1	—		—




Total commercial loans	7,617		9	500		3	8,363		13	600		5
Residential real estate:
Residential first lien	66		1	—		—	66		1	—		—
Other residential	81		2	—		—	81		2	—		—
Consumer:
Consumer	26		1	—		—	26		1	—		—

Lease financing	1,416		6	—		—	2,132		9	—		—
Total loan restructurings	$	9,206	19	$	500	3	$	10,668	26	$	600	5



	Balance		Count	Balance		Count	Balance		Count	Balance		Count
Interest Rate Reduction	$	480	2	$	—	—	$	480	2	$	—	—
Term Extension	2,209		14	500		3	3,671		21	600		5
Forgiveness of Principal or Interest	—		—	—		—	—		—	—		—
Other	6,517		3	—		—	6,517		3	—		—
Total loan restructurings	$	9,206	19	$	500	3	$	10,668	26	$	600	5

Schedule of Collateral Dependent Loans

The table below presents the amortized cost basis of individually evaluated, collateral dependent loans by loan class, for borrowers experiencing financial difficulty, as of June 30, 2024 and December 31, 2023:


	Type of Collateral
(dollars in thousands)	Real Estate		Blanket Lien		Equipment		Total
June 30, 2024
Commercial:
Commercial	$	—	$	3,622	$	—	$	3,622
Commercial other	—		—		765		765
Commercial real estate:
Non-owner occupied	19,136		—		—		19,136
Owner occupied	9,285		—		—		9,285
Multi-family	20,453		—		—		20,453
Construction and land development	26,278		—		—		26,278


Lease financing	—		—		1,139		1,139
Total collateral dependent loans	$	75,152	$	3,622	$	1,904	$	80,678

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

Schedule of Aging Status of Recorded Investments in Loans by Portfolio (Excluding PCI Loans)

The aging status of the recorded investment in loans by portfolio as of June 30, 2024 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	$	9,389	$	564	$	—	$	9,953	$	6,329	$	813,606	$	829,888
Commercial other	11,730		3,630		840		16,200		7,874		546,905		570,979
Commercial real estate:
Commercial real estate non-owner occupied	65		—		—		65		20,709		1,600,328		1,621,102
Commercial real estate owner occupied	7,635		264		—		7,899		10,827		419,391		438,117
Multi-family	—		—		—		—		20,544		273,319		293,863
Farmland	—		—		—		—		1,301		67,122		68,423
Construction and land development	—		—		—		—		26,318		450,210		476,528
Total commercial loans	28,819		4,458		840		34,117		93,902		4,170,881		4,298,900
Residential real estate:
Residential first lien	423		—		510		933		3,740		310,366		315,039
Other residential	49		9		—		58		609		62,687		63,354
Consumer:
Consumer	109		11		—		120		77		94,566		94,763
Consumer other	6,097		3,740		—		9,837		—		641,442		651,279
Lease financing	6,743		3,587		316		10,646		12,130		405,883		428,659
Total loans	$	42,240	$	11,805	$	1,666	$	55,711	$	110,458	$	5,685,825	$	5,851,994

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

Schedule of Loans Credit Equality Indicators

The following tables present the recorded investment of the commercial loan portfolio by risk category as of June 30, 2024 and December 31, 2023:


			June 30, 2024
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2024		2023		2022		2021		2020		Prior		Revolving loans		Total
Commercial	Commercial	Acceptable credit quality	$	65,586	$	160,781	$	70,501	$	61,312	$	30,738	$	48,184	$	361,666	$	798,768
		Special mention	—		—		—		—		—		157		260		417
		Substandard	1,349		3,080		12,974		420		301		1,589		4,661		24,374
		Substandard – nonaccrual	—		853		385		570		—		3,859		662		6,329
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—				—		—		—		—
		Subtotal	66,935		164,714		83,860		62,302		31,039		53,789		367,249		829,888

	Commercial other	Acceptable credit quality	50,149		107,601		160,250		78,838		41,032		40,630		81,279		559,779
		Special mention	2		193		1,328		356		93		69		1,039		3,080
		Substandard	—		34		—		—		—		—		212		246
		Substandard – nonaccrual	—		3,132		2,888		918		137		683		116		7,874
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	50,151		110,960		164,466		80,112		41,262		41,382		82,646		570,979

Commercial real estate	Non-owner occupied	Acceptable credit quality	271,768		179,078		526,050		281,470		86,463		171,819		8,107		1,524,755
		Special mention	—		4,367		—		179		447		185		—		5,178
		Substandard	23,472		9,912		11,517		—		4,668		20,891		—		70,460
		Substandard – nonaccrual	—		—		—		91		860		19,758		—		20,709
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	295,240		193,357		537,567		281,740		92,438		212,653		8,107		1,621,102

	Owner occupied	Acceptable credit quality	22,055		38,924		97,801		105,249		46,926		88,723		792		400,470
		Special mention	—		—		—		126		—		535		2		663
		Substandard	—		5,666		7,635		264		—		12,592		—		26,157
		Substandard – nonaccrual	108		98		8,570		—		22		1,725		304		10,827
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	22,163		44,688		114,006		105,639		46,948		103,575		1,098		438,117

	Multi-family	Acceptable credit quality	60,108		12,809		118,073		25,443		27,755		20,646		296		265,130
		Special mention	—		—		—		—		—		—		—		—
		Substandard	8,140		—		—		—		—		49		—		8,189
		Substandard – nonaccrual	91		1,616		—		899		—		17,938		—		20,544
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	68,339		14,425		118,073		26,342		27,755		38,633		296		293,863

	Farmland	Acceptable credit quality	3,011		9,674		4,636		14,535		11,402		20,824		1,460		65,542
		Special mention	—		—		—		1,451		—		—		—		1,451
		Substandard	—		—		—		14		—		115		—		129
		Substandard – nonaccrual	—		—		—		116		—		1,137		48		1,301
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	3,011		9,674		4,636		16,116		11,402		22,076		1,508		68,423

Construction and land development		Acceptable credit quality	23,239		71,328		232,968		68,230		—		1,478		28,510		425,753
		Special mention	—		—		9,851		5,324		—		40		—		15,215
		Substandard	—		—		—		6,000		—		—		—		6,000
		Substandard – nonaccrual	—		—		10,594		15,684		—		39		—		26,317
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	1,175		1,285		406		354		—		23		—		3,243
		Subtotal	24,414		72,613		253,819		95,592		—		1,580		28,510		476,528

Total		Acceptable credit quality	495,916		580,195		1,210,279		635,077		244,316		392,304		482,110		4,040,197
		Special mention	2		4,560		11,179		7,436		540		986		1,301		26,004
		Substandard	32,961		18,692		32,126		6,698		4,969		35,236		4,873		135,555
		Substandard – nonaccrual	199		5,699		22,437		18,278		1,019		45,139		1,130		93,901
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	1,175		1,285		406		354		—		23		—		3,243
Total commercial loans			$	530,253	$	610,431	$	1,276,427	$	667,843	$	250,844	$	473,688	$	489,414	$	4,298,900


			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

The following table presents the gross charge-offs by class of loan and year of origination on the commercial loan portfolio for the three and six months ended June 30, 2024:


		Term Loans by Origination Year
(dollars in thousands)		2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
For the three months ended June 30, 2024
Commercial	Commercial	$	—	$	475	$	—	$	750	$	—	$	14	$	—	$	1,239
	Commercial Other	—		579		937		127		3		83		—		1,729
Commercial Real Estate	Non-owner occupied	—		—		—		—		—		5		—		5




Total gross commercial charge-offs		$	—	$	1,054	$	937	$	877	$	3	$	102	$	—	$	2,973

For the six months ended June 30, 2024
Commercial	Commercial	$	—	$	475	$	—	$	750	$	10	$	14	$	103	$	1,352
	Commercial Other	—		1,445		2,011		421		23		126		—		4,026
Commercial Real Estate	Non-owner occupied	—		—		—		—		138		558		—		696




Total gross commercial charge-offs		$	—	$	1,920	$	2,011	$	1,171	$	171	$	698	$	103	$	6,074

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 June 30, 2024 and December 31, 2023:


			June 30, 2024
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Residential real estate	Residential first lien	Performing	$	13,780	$	42,466	$	71,297	$	36,259	$	28,064	$	118,874	$	49	$	310,789
		Nonperforming	—		142		196		523		458		2,931		—		4,250
		Subtotal	13,780		42,608		71,493		36,782		28,522		121,805		49		315,039

	Other residential	Performing	1,337		2,400		984		297		355		2,330		55,042		62,745
		Nonperforming	—		—		—		—		—		165		444		609
		Subtotal	1,337		2,400		984		297		355		2,495		55,486		63,354

Consumer	Consumer	Performing	6,512		25,468		19,629		27,238		4,597		10,259		983		94,686
		Nonperforming	—		11		41		4		—		19		2		77
		Subtotal	6,512		25,479		19,670		27,242		4,597		10,278		985		94,763

	Consumer other	Performing	65		161,083		310,716		112,879		44,810		21,726		—		651,279
		Nonperforming	—		—		—		—		—		—		—		—
		Subtotal	65		161,083		310,716		112,879		44,810		21,726		—		651,279

Leases financing		Performing	49,451		113,989		131,766		57,489		36,968		26,550		—		416,213
		Nonperforming	—		2,360		5,623		3,289		434		740		—		12,446
		Subtotal	49,451		116,349		137,389		60,778		37,402		27,290		—		428,659

Total		Performing	71,145		345,406		534,392		234,162		114,794		179,739		56,074		1,535,712
		Nonperforming	—		2,513		5,860		3,816		892		3,855		446		17,382
Total other loans			$	71,145	$	347,919	$	540,252	$	237,978	$	115,686	$	183,594	$	56,520	$	1,553,094


			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

The following table presents the gross charge-offs by class of loan and year of origination on the other loan portfolio for the three and six months ended June 30, 2024:


		Term Loans by Origination Year
(dollars in thousands)		2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
For the three months ended June 30, 2024
Residential real estate	Residential first lien	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
	Other residential	—		—		—		—		—		—		—		—
Consumer	Consumer	—		22		—		5		10		—		1		38
	Consumer other	1		—		—		—		—		160		—		161
Lease financing		—		946		900		223		15		—		—		2,084
Total gross other charge-offs		$	1	$	968	$	900	$	228	$	25	$	160	$	1	$	2,283

For the six months ended June 30, 2024
Residential real estate	Residential first lien	$	—	$	—	$	11	$	—	$	—	$	—	$	—	$	11
	Other residential	—		—		16		—		—		—		8		24
Consumer	Consumer	—		21		—		5		17		27		1		71
	Consumer other	1		—		—		—		—		362		—		363
Lease financing		—		1,069		2,270		338		52		20		—		3,749
Total gross other charge-offs		$	1	$	1,090	$	2,297	$	343	$	69	$	409	$	9	$	4,218

COMMITMENTS, CONTINGENCIES AND CREDIT RISK

6 Months Ended

Jun. 30, 2024

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. During the second quarter of 2024, the Company recorded an accrual related to various legal actions. No other material losses are anticipated as a result of these actions or claims.

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

Our exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank used the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The commitments are principally tied to variable rates. Loan commitments as of June 30, 2024 and December 31, 2023 were as follows:


(dollars in thousands)	June 30, 2024		December 31, 2023
Commitments to extend credit	$	756,302	$	855,489
Financial guarantees – standby letters of credit	23,502		22,745

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 2024 and years prior, borrower default expectations, historical investor repurchase demand and appeals success rates, and estimated loss severity. Loans repurchased from investors are initially recorded at fair value, which becomes the Company’s new accounting basis. Any difference between the loan’s fair value and the outstanding principal amount is charged or credited to the mortgage repurchase liability, as appropriate. Subsequent to repurchase, such loans are carried in loans receivable. There were no losses as a result of make-whole requests and loan repurchases for the three and six months ended June 30, 2024 and 2023. The liability for unresolved repurchase demands totaled $0.1 million at both June 30, 2024 and December 31, 2023.

FHLB ADVANCES AND OTHER BORROWINGS (Tables)

6 Months Ended

Jun. 30, 2024

FHLB ADVANCES AND OTHER BORROWINGS

Schedule of Federal Home Loan Bank (FHLB) Advances

The following table summarizes our FHLB advances and other borrowings as of June 30, 2024 and December 31, 2023:


(dollars in thousands)	June 30, 2024		December 31, 2023


FHLB advances – fixed rate, fixed term at rates averaging 4.79% and 4.94% at June 30, 2024 and December 31, 2023 - maturing through April 2029	$	150,000	$	150,000
FHLB advances – putable fixed rate at rates averaging 3.34% and 3.07% at June 30, 2024 and December 31, 2023, respectively – maturing through May 2029 with call provisions through November 2024	130,000		160,000

FHLB advances – Short term fixed rate at rates of 5.41% and 5.45% at June 30, 2024 and December 31, 2023 – matured July 2024	320,000		166,000
Total FHLB advances and other borrowings	$	600,000	$	476,000

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Loss Contingencies [Line Items]
Anticipated material loss	$ 0		$ 0
Losses as a result of make whole requests and loan repurchases	0	$ 0	0	$ 0
Liability for unresolved repurchase demands	100,000		100,000		$ 100,000
Commitments to extend credit
Loss Contingencies [Line Items]
Loan commitments	756,302,000		756,302,000		855,489,000
Financial guarantees – standby letters of credit
Loss Contingencies [Line Items]
Loan commitments	$ 23,502,000		$ 23,502,000		$ 22,745,000

- 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 + Details

PREMISES, EQUIPMENT AND LEASES (Tables)

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Summary of Premises and Equipment

A summary of premises, equipment and leases at June 30, 2024 and December 31, 2023 is as follows:


	June 30,		December 31,
(dollars in thousands)	2024		2023
Land	$	15,968	$	15,968
Buildings and improvements	79,431		78,104
Furniture and equipment	35,766		35,797
Lease right-of-use assets	8,409		7,673
Total	139,574		137,542
Accumulated depreciation	(56,534)		(54,728)
Premises and equipment, net	$	83,040	$	82,814

Summary of Information Related to Operating Leases

Information related to operating leases for the three and six months ended June 30, 2024 and 2023 was as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2024			2023			2024			2023
Operating lease cost	$	481		$	493		$	957		$	977
Operating cash flows from leases	577			590			1,149			1,180
Right-of-use assets obtained in exchange for lease obligations	1,317			218			1,539			1,348

Weighted average remaining lease term	7.37 years			8.0 years			7.37 years			8.0 years
Weighted average discount rate	3.58		%	3.29		%	3.58		%	3.29		%

Summary of Projected Minimum Rental Payments

The projected minimum rental payments under the terms of the leases as of June 30, 2024 were as follows:


(dollars in thousands)	Amount
Year ending December 31:
2024 remaining	$	971
2025	1,652
2026	1,555
2027	1,413
2028	1,359
Thereafter	4,328
Total future minimum lease payments	11,278
Less imputed interest	(1,427)
Total operating lease liabilities	$	9,851

INVESTMENT SECURITIES - Classified (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Investment securities available for sale
Total available for sale securities	$ 1,201,629	$ 1,012,592
Gross unrealized gains	1,894	3,217
Gross unrealized losses	108,432	99,914
Fair value	1,095,091	915,895
U.S. Treasury securities
Investment securities available for sale
Total available for sale securities	2,995	1,097
Gross unrealized gains	0	0
Gross unrealized losses	1	0
Fair value	2,994	1,097
U.S. government sponsored entities and U.S. agency securities
Investment securities available for sale
Total available for sale securities	52,440	74,161
Gross unrealized gains	131	176
Gross unrealized losses	1,740	1,765
Fair value	50,831	72,572
Mortgage-backed securities - agency
Investment securities available for sale
Total available for sale securities	790,311	650,119
Gross unrealized gains	882	2,325
Gross unrealized losses	87,017	77,944
Fair value	704,176	574,500
Mortgage-backed securities - non-agency
Investment securities available for sale
Total available for sale securities	89,379	87,019
Gross unrealized gains	596	414
Gross unrealized losses	3,793	3,904
Fair value	86,182	83,529
State and municipal securities
Investment securities available for sale
Total available for sale securities	73,063	62,952
Gross unrealized gains	160	258
Gross unrealized losses	7,072	5,750
Fair value	66,151	57,460
Corporate securities
Investment securities available for sale
Total available for sale securities	93,459	109,598
Gross unrealized gains	12	41
Gross unrealized losses	8,672	10,467
Fair value	84,799	99,172
Other securities
Investment securities available for sale
Total available for sale securities	99,982	27,646
Gross unrealized gains	113	3
Gross unrealized losses	137	84
Fair value	99,958	27,565
Other Securities, Studen Loan Asset Backed
Investment securities available for sale
Fair value	63,500
Other Securities, Structured Financial Products
Investment securities available for sale
Fair value	$ 36,500	$ 27,600

INVESTMENT SECURITIES - Allowance for Credit Loss and Unrealized Losses and Fair Values (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair value
Less than 12 Months, Fair value	$ 391,185	$ 252,732
Less than 12 Months, Unrealized loss	14,945	13,713
12 Months or more, Fair value	487,576	460,879
12 Months or more, Unrealized loss	93,487	86,201
Total, Fair value	878,761	713,611
Total, Unrealized loss	108,432	99,914
U.S. Treasury securities
Fair value
Less than 12 Months, Fair value	2,994
Less than 12 Months, Unrealized loss	1
12 Months or more, Fair value	0
12 Months or more, Unrealized loss	0
Total, Fair value	2,994
Total, Unrealized loss	1
U.S. government sponsored entities and U.S. agency securities
Fair value
Less than 12 Months, Fair value	36,004	42,826
Less than 12 Months, Unrealized loss	86	87
12 Months or more, Fair value	8,346	8,323
12 Months or more, Unrealized loss	1,654	1,678
Total, Fair value	44,350	51,149
Total, Unrealized loss	1,740	1,765
Mortgage-backed securities - agency
Fair value
Less than 12 Months, Fair value	189,165	130,106
Less than 12 Months, Unrealized loss	5,139	7,386
12 Months or more, Fair value	404,360	348,476
12 Months or more, Unrealized loss	81,878	70,558
Total, Fair value	593,525	478,582
Total, Unrealized loss	87,017	77,944
Mortgage-backed securities - non-agency
Fair value
Less than 12 Months, Fair value	12,911	8,852
Less than 12 Months, Unrealized loss	183	353
12 Months or more, Fair value	18,476	19,418
12 Months or more, Unrealized loss	3,610	3,551
Total, Fair value	31,387	28,270
Total, Unrealized loss	3,793	3,904
State and municipal securities
Fair value
Less than 12 Months, Fair value	57,644	51,497
Less than 12 Months, Unrealized loss	6,845	5,750
12 Months or more, Fair value	1,387	0
12 Months or more, Unrealized loss	227	0
Total, Fair value	59,031	51,497
Total, Unrealized loss	7,072	5,750
Corporate securities
Fair value
Less than 12 Months, Fair value	26,780	4,688
Less than 12 Months, Unrealized loss	2,554	53
12 Months or more, Fair value	55,007	84,662
12 Months or more, Unrealized loss	6,118	10,414
Total, Fair value	81,787	89,350
Total, Unrealized loss	8,672	10,467
Other securities
Fair value
Less than 12 Months, Fair value	65,687	14,763
Less than 12 Months, Unrealized loss	137	84
12 Months or more, Fair value	0	0
12 Months or more, Unrealized loss	0	0
Total, Fair value	65,687	14,763
Total, Unrealized loss	$ 137	$ 84

EARNINGS PER COMMON SHARE (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings per Common Share

Presented

below are the calculations for basic and diluted earnings per common share for the three and six months ended June 30, 2024 and 2023:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands, except per share data)	2024		2023		2024		2023
Net income	$	6,750	$	21,575	$	20,635	$	43,347
Preferred dividends declared	(2,228)		(2,228)		(4,456)		(4,456)

Net income available to common shareholders	4,522		19,347		16,179		38,891
Common shareholder dividends	(6,661)		(6,579)		(13,327)		(13,248)
Unvested restricted stock award dividends	(103)		(80)		(209)		(160)
Undistributed earnings to unvested restricted stock awards	—		(149)		(40)		(300)
Undistributed earnings to common shareholders	$	(2,242)	$	12,539	$	2,603	$	25,183
Basic
Distributed earnings to common shareholders	$	6,661	$	6,579	$	13,327	$	13,248
Undistributed (loss) earnings to common shareholders	(2,242)		12,539		2,603		25,183
Total common shareholders earnings, basic	$	4,419	$	19,118	$	15,930	$	38,431
Diluted
Distributed earnings to common shareholders	$	6,661	$	6,579	$	13,327	$	13,248
Undistributed (loss) earnings to common shareholders	(2,242)		12,539		2,603		25,183
Total common shareholders earnings	4,419		19,118		15,930		38,431
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	—		—		—		—
Total common shareholders earnings, diluted	$	4,419	$	19,118	$	15,930	$	38,431
Weighted average common shares outstanding, basic	21,731,195		22,200,917		21,753,056		22,338,627
Dilutive effect of options	3,654		4,162		8,436		10,354
Weighted average common shares outstanding, diluted	21,734,849		22,205,079		21,761,492		22,348,981
Basic earnings per common share	$	0.20	$	0.86	$	0.73	$	1.72
Diluted earnings per common share	0.20		0.86		0.73		1.72

Antidilutive stock options(1)	235,652		375,912		235,652		375,912

(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.

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Noninterest income - out-of-scope of Topic 606	$ 3,301	$ 4,310	$ 10,439	$ 6,710
Total noninterest income	17,656	18,753	38,843	34,532
Trust management/administration fees
Disaggregation of Revenue [Line Items]
Revenue	5,853	5,356	12,120	10,992
Investment advisory and brokerage fees
Disaggregation of Revenue [Line Items]
Revenue	500	430	923	861
Other
Disaggregation of Revenue [Line Items]
Revenue	448	483	890	827
Nonsufficient fund fees
Disaggregation of Revenue [Line Items]
Revenue	1,836	1,741	3,658	3,439
Other
Disaggregation of Revenue [Line Items]
Revenue	1,285	936	2,579	1,806
Interchange revenues
Disaggregation of Revenue [Line Items]
Revenue	3,563	3,696	6,921	7,108
Merchant services revenue
Disaggregation of Revenue [Line Items]
Revenue	357	398	701	756
Other
Disaggregation of Revenue [Line Items]
Revenue	$ 513	$ 1,403	$ 612	$ 2,033

SUBORDINATED DEBT

6 Months Ended

Jun. 30, 2024

Subordinated Borrowings [Abstract]

SUBORDINATED DEBT

The following table summarizes the Company’s subordinated debt at June 30, 2024 and December 31, 2023:


	Subordinated debt
	Fixed to Float
(dollars in thousands)	Issued September 2019			Issued September 2019			Total
At June 30, 2024
Outstanding amount	$	64,750		$	27,250		$	92,000
Carrying amount	64,663			26,993			91,656
Current rate	5.00		%	5.50		%
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		%
Maturity date	9/30/2029			9/30/2034
Optional redemption date	9/30/2024			9/30/2029
Fixed to variable conversion date	9/30/2024			9/30/2029
Variable rate	3-month SOFR plus 3.61%			3-month SOFR plus 4.05%
Interest payment terms	Semiannually			Semiannually

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

PREMISES, EQUIPMENT AND LEASES - Information Related to Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Operating lease cost	$ 481	$ 493	$ 957	$ 977
Operating cash flows from leases	577	590	1,149	1,180
Right-of-use assets obtained in exchange for lease obligations	$ 1,317	$ 218	$ 1,539	$ 1,348
Weighted average remaining lease term	7 years 4 months 13 days	8 years	7 years 4 months 13 days	8 years
Weighted average discount rate	3.58%	3.29%	3.58%	3.29%

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
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

LOANS - Risk Rating (Details) - Consumer loans and equipment finance loans and leases days past due	Jun. 30, 2024
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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Jun. 30, 2024
BUSINESS DESCRIPTION [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with GAAP and guidance provided by the SEC for interim financial information. Accordingly, the condensed financial statements do not include all of the information and footnotes required by GAAP for completed financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results may differ from these estimates. The consolidated financial statements of the Company should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 23, 2024. Certain reclassifications of 2023 amounts have been made to conform to the 2024 presentation. All significant transactions and accounts between subsidiaries have been eliminated. Assets held for customers in a fiduciary or agency capacity are not assets of the Company and, accordingly, other than trust cash on deposit with the Bank, are not included in the accompanying unaudited balance sheets. Management has evaluated subsequent events for potential recognition or disclosure. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or any other period.
Accounting Guidance Adopted in 2024	Accounting Guidance Adopted in 2024 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. The Company adopted this guidance on January 1, 2024 on a prospective basis. The adoption of this accounting pronouncement did not have a material impact on the consolidated financial statements. Accounting Guidance Not Yet Adopted FASB ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures - In December 2023, the FASB issued ASU No. 2023-07, which requires public entities to disclose significant segment expenses, an amount and description for other segment items, the title and position of the entity's chief operating decision maker and an explanation of how the chief operating decision maker uses the reported measures of profit or loss to assess segment performance, and, on an interim basis, certain segment related disclosures that previously were required only on an annual basis.The ASU is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company will update the related disclosures upon adoption. FASB ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures - In December 2023, the FASB issued ASU No. 2023-09, which requires public entities to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if items meet a quantitative threshold. The pronouncement also requires entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold, among other things. The ASU is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company will update the related disclosures upon adoption.

PREMISES, EQUIPMENT AND LEASES - Projected Minimum Rental Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
2024 remaining	$ 971
2025	1,652
2026	1,555
2027	1,413
2028	1,359
Thereafter	4,328
Total future minimum lease payments	11,278
Less imputed interest	(1,427)
Total operating lease liabilities	$ 9,851	$ 9,300

INVESTMENT SECURITIES - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Amortized cost
Within one year	$ 4,031		$ 4,031
After one year through five years	72,993		72,993
After five years through ten years	150,875		150,875
After ten years	94,040		94,040
Mortgage-backed securities	879,690		879,690
Total available for sale securities	1,201,629		1,201,629		$ 1,012,592
Fair value
Within one year	4,020		4,020
After one year through five years	70,366		70,366
After five years through ten years	138,034		138,034
After ten years	92,313		92,313
Mortgage-backed securities	790,358		790,358
Total available for sale securities	1,095,091		1,095,091		$ 915,895
Proceeds from sales	45,825	$ 15,467	45,825	$ 99,960
Gross realized gains on sales	307	0	307	338
Gross realized losses on sales	$ (459)	$ (869)	$ (459)	$ (1,855)

DERIVATIVE INSTRUMENTS

6 Months Ended

Jun. 30, 2024

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 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 in the consolidated statements of income.

The following table summarizes the interest rate lock commitments and forward commitments to sell mortgage-backed securities held by the Company, their notional amount and estimated fair values at June 30, 2024 and December 31, 2023:


	Notional amount				Fair value gain (loss)
(dollars in thousands)	June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023
Derivative instruments (included in other assets):
Interest rate lock commitments	$	5,679	$	2,405	$	120	$	62


Derivative instruments (included in other liabilities):
Forward commitments to sell mortgage-backed securities	9,750		5,000		(13)		(83)

During the six months ended June 30, 2024, the Company recognized net gains of $0.1 million on derivative instruments in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income. There were no net gains or losses recognized during the three months ended June 30, 2024.

During both the three and six months ended June 30, 2023, the Company recognized net gains of $0.1 million on derivative instruments in commercial FHA revenue and residential mortgage banking revenue in the consolidated statements of income.

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 underlying instruments related to these interest rate swap agreements include pools of commercial and commercial real estate loans, investment securities and borrowings. These hedges were determined to be effective during all periods presented and we expect them to remain effective during the remaining terms. The following table summarizes the Company's derivatives designated as hedges at June 30, 2024 and December 31, 2023:


(dollars in thousands)	June 30, 2024			December 31, 2023

Notional Amount	$	425,000		$	400,000
Fair value gain included in other assets	1,235			—
Fair value loss included in other liabilities	7,820			8,443
Tax effected amount included in accumulated other comprehensive (loss) income	(4,807)			(6,164)
Average remaining life in years	2.31			2.67
Weighted average pay rate	6.37		%	6.55		%
Weighted average receive rate	5.40		%	5.41		%

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 $6.7 million and $6.9 million at June 30, 2024 and December 31, 2023, respectively. The fair value of the customer derivative instruments and the offsetting counterparty derivative instruments was $0.4 million and $0.3 million at June 30, 2024 and December 31, 2023, respectively, which are included in other assets and other liabilities, as applicable, on the consolidated balance sheets.

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Summary of Noninterest Income, Segregated by Revenue

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30, 2024 and 2023.


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2024		2023		2024		2023
Noninterest income - in-scope of Topic 606
Wealth management revenue:
Trust management/administration fees	$	5,853	$	5,356	$	12,120	$	10,992
Investment advisory and brokerage fees	500		430		923		861

Other	448		483		890		827
Service charges on deposit accounts:
Nonsufficient fund fees	1,836		1,741		3,658		3,439
Other	1,285		936		2,579		1,806
Interchange revenues	3,563		3,696		6,921		7,108
Other income:
Merchant services revenue	357		398		701		756
Other	513		1,403		612		2,033
Noninterest income - out-of-scope of Topic 606	3,301		4,310		10,439		6,710
Total noninterest income	$	17,656	$	18,753	$	38,843	$	34,532

SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Schedule of Segment Financial Information

Selected business segment financial information for the three and six months ended June 30, 2024 and 2023 were as follows:


(dollars in thousands)	Banking		Wealth Management		Corporate		Total
Three Months Ended June 30, 2024
Net interest income (expense)	$	57,223	$	(12)	$	(2,159)	$	55,052
Provision for credit losses	16,800		—		—		16,800
Noninterest income	10,875		6,801		(20)		17,656
Noninterest expense	42,792		5,342		(655)		47,479
Income (loss) before income taxes (benefit)	8,506		1,447		(1,524)		8,429
Income taxes (benefit)	1,704		618		(643)		1,679
Net income (loss)	$	6,802	$	829	$	(881)	$	6,750
Total assets	$	7,734,375	$	34,940	$	(12,041)	$	7,757,274

Six Months Ended June 30, 2024
Net interest income (expense)	$	115,439	$	(20)	$	(4,447)	$	110,972
Provision for credit losses	30,800		—		—		30,800
Noninterest income	25,366		13,933		(456)		38,843
Noninterest expense	82,890		10,754		(1,298)		92,346
Income (loss) before income taxes (benefit)	27,115		3,159		(3,605)		26,669
Income taxes (benefit)	6,165		1,308		(1,439)		6,034
Net income (loss)	$	20,950	$	1,851	$	(2,166)	$	20,635
Total assets	$	7,734,375	$	34,940	$	(12,041)	$	7,757,274

Three Months Ended June 30, 2023
Net interest income (expense)	$	61,035	$	—	$	(2,195)	$	58,840
Provision for credit losses	5,879		—		—		5,879
Noninterest income	11,874		6,269		610		18,753
Noninterest expense	38,550		4,675		(331)		42,894
Income (loss) before income taxes (benefit)	28,480		1,594		(1,254)		28,820
Income taxes (benefit)	7,326		445		(526)		7,245
Net income (loss)	$	21,154	$	1,149	$	(728)	$	21,575
Total assets	$	8,025,617	$	30,249	$	(21,145)	$	8,034,721

Six Months Ended June 30, 2023
Net interest income (expense)	$	123,643	$	—	$	(4,299)	$	119,344
Provision for credit losses	9,014		—		—		9,014
Noninterest income	21,495		12,680		357		34,532
Noninterest expense	78,397		9,516		(537)		87,376
Income (loss) before income taxes (benefit)	57,727		3,164		(3,405)		57,486
Income taxes (benefit)	14,532		884		(1,277)		14,139
Net income (loss)	$	43,195	$	2,280	$	(2,128)	$	43,347
Total assets	$	8,025,617	$	30,249	$	(21,145)	$	8,034,721

LOANS - Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Summary of loans
Collateral dependent loans	$ 80,678	$ 31,769
Real Estate
Summary of loans
Collateral dependent loans	75,152	28,565
Blanket Lien
Summary of loans
Collateral dependent loans	3,622	0
Equipment
Summary of loans
Collateral dependent loans	1,904	3,204
Lease financing
Summary of loans
Collateral dependent loans	1,139
Lease financing \| Real Estate
Summary of loans
Collateral dependent loans	0
Lease financing \| Blanket Lien
Summary of loans
Collateral dependent loans	0
Lease financing \| Equipment
Summary of loans
Collateral dependent loans	1,139
Commercial \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	3,622	1,972
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	3,622	0
Commercial \| Commercial Loan Portfolio \| Equipment
Summary of loans
Collateral dependent loans	0	1,972
Commercial other \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	765	1,232
Commercial other \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	0	0
Commercial other \| Commercial Loan Portfolio \| Blanket Lien
Summary of loans
Collateral dependent loans	0	0
Commercial other \| Commercial Loan Portfolio \| Equipment
Summary of loans
Collateral dependent loans	765	1,232
Commercial real estate non-owner occupied \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	19,136	14,147
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	19,136	14,147
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	9,285	9,275
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	9,285	9,275
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	20,453	5,143
Multi-family \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	20,453	5,143
Multi-family \| Commercial Loan Portfolio \| Blanket Lien
Summary of loans
Collateral dependent loans	0	0
Multi-family \| Commercial Loan Portfolio \| Equipment
Summary of loans
Collateral dependent loans	0	$ 0
Construction and land development \| Commercial Loan Portfolio
Summary of loans
Collateral dependent loans	26,278
Construction and land development \| Commercial Loan Portfolio \| Real Estate
Summary of loans
Collateral dependent loans	26,278
Construction and land development \| Commercial Loan Portfolio \| Blanket Lien
Summary of loans
Collateral dependent loans	0
Construction and land development \| Commercial Loan Portfolio \| Equipment
Summary of loans
Collateral dependent loans	$ 0

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
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)	21,377,215	21,551,402
Common stock, shares outstanding (in shares)	21,377,215	21,551,402

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, 2022	$ 758,574	$ 110,548	$ 222	$ 449,196	$ 282,405	$ (83,797)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	43,347				43,347
Other comprehensive loss	(922)					(922)
Common dividends declared	(13,408)				(13,408)
Preferred dividends declared	(4,456)				(4,456)
Common stock repurchased	(8,967)		(4)	(8,963)
Share-based compensation expense	1,192			1,192
Issuance of common stock under employee benefit plans	1,461			1,461
Ending Balance at Jun. 30, 2023	776,821	110,548	218	442,886	307,888	(84,719)
Beginning Balance at Mar. 31, 2023	775,643	110,548	221	447,471	295,200	(77,797)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	21,575				21,575
Other comprehensive loss	(6,922)					(6,922)
Common dividends declared	(6,659)				(6,659)
Preferred dividends declared	(2,228)				(2,228)
Common stock repurchased	(6,166)		(3)	(6,163)
Share-based compensation expense	567			567
Issuance of common stock under employee benefit plans	1,011			1,011
Ending Balance at Jun. 30, 2023	776,821	110,548	218	442,886	307,888	(84,719)
Beginning Balance at Dec. 31, 2023	791,853	110,548	216	435,463	322,379	(76,753)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	20,635				20,635
Other comprehensive loss	(5,828)					(5,828)
Common dividends declared	(13,536)				(13,536)
Preferred dividends declared	(4,456)				(4,456)
Common stock repurchased	(4,970)		(2)	(4,968)
Share-based compensation expense	1,406			1,406
Issuance of common stock under employee benefit plans	668			668
Ending Balance at Jun. 30, 2024	785,772	110,548	214	432,569	325,022	(82,581)
Beginning Balance at Mar. 31, 2024	791,006	110,548	215	434,398	327,264	(81,419)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,750				6,750
Other comprehensive loss	(1,162)					(1,162)
Common dividends declared	(6,764)				(6,764)
Preferred dividends declared	(2,228)				(2,228)
Common stock repurchased	(3,026)		(1)	(3,025)
Share-based compensation expense	705			705
Issuance of common stock under employee benefit plans	491			491
Ending Balance at Jun. 30, 2024	$ 785,772	$ 110,548	$ 214	$ 432,569	$ 325,022	$ (82,581)

- Definition

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

+ References

+ Details

- Definition

Equity impact of the value of stock that has been repurchased during the period and has not been retired and is not held in treasury. Some state laws may mandate the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

+ References + Details

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

+ References

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+ Details

LOANS

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

LOANS

The following table presents total loans outstanding by portfolio class, as of June 30, 2024 and December 31, 2023:


(dollars in thousands)	June 30, 2024		December 31, 2023
Commercial:
Commercial	$	829,888	$	825,938
Commercial other	570,979		656,592
Commercial real estate:
Commercial real estate non-owner occupied	1,621,102		1,622,668
Commercial real estate owner occupied	438,117		436,857
Multi-family	293,863		279,904
Farmland	68,423		67,416
Construction and land development	476,528		452,593
Total commercial loans	4,298,900		4,341,968
Residential real estate:
Residential first lien	315,039		317,388
Other residential	63,354		63,195
Consumer:
Consumer	94,763		107,743
Consumer other	651,279		827,435
Lease financing	428,659		473,350
Total loans	$	5,851,994	$	6,131,079

Total loans include net deferred loan costs of $2.9 million and $3.8 million at June 30, 2024 and December 31, 2023, respectively, and unearned discounts of $59.6 million and $66.4 million within the lease financing portfolio at June 30, 2024 and December 31, 2023, respectively.

At June 30, 2024, the Company had residential real estate loans held for sale totaling $5.6 million, compared to $3.8 million at December 31, 2023. The Company sold loans and leases with proceeds totaling $28.2 million and $45.8 million during the three and six months ended June 30, 2024 and $28.0 million and $34.3 million during the three and six months ended June 30, 2023, 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 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 three and six months ended June 30, 2024 and 2023, are summarized as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2024		2023		2024		2023
Beginning balance	$	20,726	$	19,519	$	20,990	$	19,776
New loans and other additions	500		2,367		500		2,367
Repayments and other reductions	(332)		(317)		(596)		(574)
Ending balance	$	20,894	$	21,569	$	20,894	$	21,569

The following table represents, by loan portfolio segment, a summary of changes in the allowance for credit losses on loans for the three and six months ended June 30, 2024 and 2023:


	Commercial Loan Portfolio						Other Loan Portfolio
(dollars in thousands)	Commercial		Commercial real estate		Construction and land development		Residential real estate		Consumer		Lease financing		Total
Changes in allowance for credit losses on loans for the three months ended June 30, 2024:
Balance, beginning of period	$	21,329	$	21,367	$	12,629	$	5,655	$	3,611	$	13,466	$	78,057
Provision for credit losses on loans	5,733		(1,253)		336		(475)		10,817		1,842		17,000
Charge-offs	(2,968)		(5)		—		—		(199)		(2,084)		(5,256)
Recoveries	153		2,088		1		13		63		64		2,382
Balance, end of period	$	24,247	$	22,197	$	12,966	$	5,193	$	14,292	$	13,288	$	92,183

Changes in allowance for credit losses on loans for the six months ended June 30, 2024:
Balance, beginning of period	$	21,847	$	20,229	$	4,163	$	5,553	$	3,770	$	12,940	$	68,502
Provision for credit losses on loans	7,509		424		8,802		(393)		10,806		3,852		31,000
Charge-offs	(5,378)		(696)		—		(35)		(434)		(3,749)		(10,292)
Recoveries	269		2,240		1		68		150		245		2,973
Balance, end of period	$	24,247	$	22,197	$	12,966	$	5,193	$	14,292	$	13,288	$	92,183

Changes in allowance for credit losses on loans for the three months ended June 30, 2023:
Balance, beginning of period	$	15,762	$	28,216	$	2,442	$	4,350	$	4,129	$	7,168	$	62,067
Provision for credit losses on loans	196		2,427		1,049		1,207		4		996		5,879
Charge-offs	(1,071)		(1,544)		(334)		(54)		(260)		(771)		(4,034)
Recoveries	403		326		32		48		80		149		1,038
Balance, end of period	$	15,290	$	29,425	$	3,189	$	5,551	$	3,953	$	7,542	$	64,950

Changes in allowance for credit losses on loans for the six months ended June 30, 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	2,194		2,097		1,056		1,270		704		1,693		9,014
Charge-offs	(2,040)		(2,290)		(334)		(85)		(523)		(1,161)		(6,433)
Recoveries	497		328		32		65		173		223		1,318
Balance, end of period	$	15,290	$	29,425	$	3,189	$	5,551	$	3,953	$	7,542	$	64,950

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 June 30, 2024 and December 31, 2023:


	June 30, 2024						December 31, 2023
(dollars in thousands)	Nonaccrual with allowance		Nonaccrual with no allowance		Total nonaccrual		Nonaccrual with allowance		Nonaccrual with no allowance		Total nonaccrual
Commercial:
Commercial	$	6,329	$	—	$	6,329	$	3,560	$	—	$	3,560
Commercial other	7,874		—		7,874		4,941		—		4,941
Commercial real estate:
Commercial real estate non-owner occupied	13,061		7,648		20,709		1,614		14,098		15,712
Commercial real estate owner occupied	10,827		—		10,827		4,276		6,500		10,776
Multi-family	3,547		16,997		20,544		240		6,015		6,255
Farmland	1,301		—		1,301		1,148		—		1,148
Construction and land development	15,724		10,594		26,318		39		—		39
Total commercial loans	58,663		35,239		93,902		15,818		26,613		42,431
Residential real estate:
Residential first lien	3,285		455		3,740		2,583		490		3,073
Other residential	609		—		609		635		—		635
Consumer:
Consumer	77		—		77		134		—		134

Lease financing	12,115		15		12,130		9,097		36		9,133
Total loans	$	74,749	$	35,709	$	110,458	$	28,267	$	27,139	$	55,406

There was no interest income recognized on nonaccrual loans during the three and six months ended June 30, 2024 and 2023 while the loans were in nonaccrual status. Additional interest income that would have been recorded on nonaccrual loans had they been current in accordance with their original terms was $2.3 million and $3.6 million for the three and six months ended June 30, 2024 and $0.8 million and $1.6 million for the three and six months ended June 30, 2023, respectively.

Collateral Dependent Financial Assets

A collateral dependent financial asset is a loan that 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.


	Type of Collateral
(dollars in thousands)	Real Estate		Blanket Lien		Equipment		Total
June 30, 2024
Commercial:
Commercial	$	—	$	3,622	$	—	$	3,622
Commercial other	—		—		765		765
Commercial real estate:
Non-owner occupied	19,136		—		—		19,136
Owner occupied	9,285		—		—		9,285
Multi-family	20,453		—		—		20,453
Construction and land development	26,278		—		—		26,278


Lease financing	—		—		1,139		1,139
Total collateral dependent loans	$	75,152	$	3,622	$	1,904	$	80,678

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

The aging status of the recorded investment in loans by portfolio as of June 30, 2024 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	$	9,389	$	564	$	—	$	9,953	$	6,329	$	813,606	$	829,888
Commercial other	11,730		3,630		840		16,200		7,874		546,905		570,979
Commercial real estate:
Commercial real estate non-owner occupied	65		—		—		65		20,709		1,600,328		1,621,102
Commercial real estate owner occupied	7,635		264		—		7,899		10,827		419,391		438,117
Multi-family	—		—		—		—		20,544		273,319		293,863
Farmland	—		—		—		—		1,301		67,122		68,423
Construction and land development	—		—		—		—		26,318		450,210		476,528
Total commercial loans	28,819		4,458		840		34,117		93,902		4,170,881		4,298,900
Residential real estate:
Residential first lien	423		—		510		933		3,740		310,366		315,039
Other residential	49		9		—		58		609		62,687		63,354
Consumer:
Consumer	109		11		—		120		77		94,566		94,763
Consumer other	6,097		3,740		—		9,837		—		641,442		651,279
Lease financing	6,743		3,587		316		10,646		12,130		405,883		428,659
Total loans	$	42,240	$	11,805	$	1,666	$	55,711	$	110,458	$	5,685,825	$	5,851,994

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

Loan Restructurings

The Company may offer various types of concessions when a borrower is experiencing financial difficulties that result in a direct change in the timing or amount of contractual cash flows including principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. 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.

The following table represents, by loan portfolio segment, a summary of the loan restructuring for the three and six months ended June 30, 2024 and 2023:


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
(dollars in thousands)	Balance		Count	Balance		Count	Balance		Count	Balance		Count
Commercial:

Commercial other	$	1,161	8	$	500	3	$	1,907	12	$	600	5
Commercial real estate:
Commercial real estate non-owner occupied	6,456		1	—		—	6,456		1	—		—




Total commercial loans	7,617		9	500		3	8,363		13	600		5
Residential real estate:
Residential first lien	66		1	—		—	66		1	—		—
Other residential	81		2	—		—	81		2	—		—
Consumer:
Consumer	26		1	—		—	26		1	—		—

Lease financing	1,416		6	—		—	2,132		9	—		—
Total loan restructurings	$	9,206	19	$	500	3	$	10,668	26	$	600	5



	Balance		Count	Balance		Count	Balance		Count	Balance		Count
Interest Rate Reduction	$	480	2	$	—	—	$	480	2	$	—	—
Term Extension	2,209		14	500		3	3,671		21	600		5
Forgiveness of Principal or Interest	—		—	—		—	—		—	—		—
Other	6,517		3	—		—	6,517		3	—		—
Total loan restructurings	$	9,206	19	$	500	3	$	10,668	26	$	600	5

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 June 30, 2024 and December 31, 2023:


			June 30, 2024
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2024		2023		2022		2021		2020		Prior		Revolving loans		Total
Commercial	Commercial	Acceptable credit quality	$	65,586	$	160,781	$	70,501	$	61,312	$	30,738	$	48,184	$	361,666	$	798,768
		Special mention	—		—		—		—		—		157		260		417
		Substandard	1,349		3,080		12,974		420		301		1,589		4,661		24,374
		Substandard – nonaccrual	—		853		385		570		—		3,859		662		6,329
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—				—		—		—		—
		Subtotal	66,935		164,714		83,860		62,302		31,039		53,789		367,249		829,888

	Commercial other	Acceptable credit quality	50,149		107,601		160,250		78,838		41,032		40,630		81,279		559,779
		Special mention	2		193		1,328		356		93		69		1,039		3,080
		Substandard	—		34		—		—		—		—		212		246
		Substandard – nonaccrual	—		3,132		2,888		918		137		683		116		7,874
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	50,151		110,960		164,466		80,112		41,262		41,382		82,646		570,979

Commercial real estate	Non-owner occupied	Acceptable credit quality	271,768		179,078		526,050		281,470		86,463		171,819		8,107		1,524,755
		Special mention	—		4,367		—		179		447		185		—		5,178
		Substandard	23,472		9,912		11,517		—		4,668		20,891		—		70,460
		Substandard – nonaccrual	—		—		—		91		860		19,758		—		20,709
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	295,240		193,357		537,567		281,740		92,438		212,653		8,107		1,621,102

	Owner occupied	Acceptable credit quality	22,055		38,924		97,801		105,249		46,926		88,723		792		400,470
		Special mention	—		—		—		126		—		535		2		663
		Substandard	—		5,666		7,635		264		—		12,592		—		26,157
		Substandard – nonaccrual	108		98		8,570		—		22		1,725		304		10,827
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	22,163		44,688		114,006		105,639		46,948		103,575		1,098		438,117

	Multi-family	Acceptable credit quality	60,108		12,809		118,073		25,443		27,755		20,646		296		265,130
		Special mention	—		—		—		—		—		—		—		—
		Substandard	8,140		—		—		—		—		49		—		8,189
		Substandard – nonaccrual	91		1,616		—		899		—		17,938		—		20,544
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	68,339		14,425		118,073		26,342		27,755		38,633		296		293,863

	Farmland	Acceptable credit quality	3,011		9,674		4,636		14,535		11,402		20,824		1,460		65,542
		Special mention	—		—		—		1,451		—		—		—		1,451
		Substandard	—		—		—		14		—		115		—		129
		Substandard – nonaccrual	—		—		—		116		—		1,137		48		1,301
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	—		—		—		—		—		—		—		—
		Subtotal	3,011		9,674		4,636		16,116		11,402		22,076		1,508		68,423

Construction and land development		Acceptable credit quality	23,239		71,328		232,968		68,230		—		1,478		28,510		425,753
		Special mention	—		—		9,851		5,324		—		40		—		15,215
		Substandard	—		—		—		6,000		—		—		—		6,000
		Substandard – nonaccrual	—		—		10,594		15,684		—		39		—		26,317
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	1,175		1,285		406		354		—		23		—		3,243
		Subtotal	24,414		72,613		253,819		95,592		—		1,580		28,510		476,528

Total		Acceptable credit quality	495,916		580,195		1,210,279		635,077		244,316		392,304		482,110		4,040,197
		Special mention	2		4,560		11,179		7,436		540		986		1,301		26,004
		Substandard	32,961		18,692		32,126		6,698		4,969		35,236		4,873		135,555
		Substandard – nonaccrual	199		5,699		22,437		18,278		1,019		45,139		1,130		93,901
		Doubtful	—		—		—		—		—		—		—		—
		Not graded	1,175		1,285		406		354		—		23		—		3,243
Total commercial loans			$	530,253	$	610,431	$	1,276,427	$	667,843	$	250,844	$	473,688	$	489,414	$	4,298,900


			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

The following table presents the gross charge-offs by class of loan and year of origination on the commercial loan portfolio for the three and six months ended June 30, 2024:


		Term Loans by Origination Year
(dollars in thousands)		2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
For the three months ended June 30, 2024
Commercial	Commercial	$	—	$	475	$	—	$	750	$	—	$	14	$	—	$	1,239
	Commercial Other	—		579		937		127		3		83		—		1,729
Commercial Real Estate	Non-owner occupied	—		—		—		—		—		5		—		5




Total gross commercial charge-offs		$	—	$	1,054	$	937	$	877	$	3	$	102	$	—	$	2,973

For the six months ended June 30, 2024
Commercial	Commercial	$	—	$	475	$	—	$	750	$	10	$	14	$	103	$	1,352
	Commercial Other	—		1,445		2,011		421		23		126		—		4,026
Commercial Real Estate	Non-owner occupied	—		—		—		—		138		558		—		696




Total gross commercial charge-offs		$	—	$	1,920	$	2,011	$	1,171	$	171	$	698	$	103	$	6,074


			June 30, 2024
			Term Loans Amortized Cost Basis by Origination Year
(dollars in thousands)			2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Residential real estate	Residential first lien	Performing	$	13,780	$	42,466	$	71,297	$	36,259	$	28,064	$	118,874	$	49	$	310,789
		Nonperforming	—		142		196		523		458		2,931		—		4,250
		Subtotal	13,780		42,608		71,493		36,782		28,522		121,805		49		315,039

	Other residential	Performing	1,337		2,400		984		297		355		2,330		55,042		62,745
		Nonperforming	—		—		—		—		—		165		444		609
		Subtotal	1,337		2,400		984		297		355		2,495		55,486		63,354

Consumer	Consumer	Performing	6,512		25,468		19,629		27,238		4,597		10,259		983		94,686
		Nonperforming	—		11		41		4		—		19		2		77
		Subtotal	6,512		25,479		19,670		27,242		4,597		10,278		985		94,763

	Consumer other	Performing	65		161,083		310,716		112,879		44,810		21,726		—		651,279
		Nonperforming	—		—		—		—		—		—		—		—
		Subtotal	65		161,083		310,716		112,879		44,810		21,726		—		651,279

Leases financing		Performing	49,451		113,989		131,766		57,489		36,968		26,550		—		416,213
		Nonperforming	—		2,360		5,623		3,289		434		740		—		12,446
		Subtotal	49,451		116,349		137,389		60,778		37,402		27,290		—		428,659

Total		Performing	71,145		345,406		534,392		234,162		114,794		179,739		56,074		1,535,712
		Nonperforming	—		2,513		5,860		3,816		892		3,855		446		17,382
Total other loans			$	71,145	$	347,919	$	540,252	$	237,978	$	115,686	$	183,594	$	56,520	$	1,553,094


			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

The following table presents the gross charge-offs by class of loan and year of origination on the other loan portfolio for the three and six months ended June 30, 2024:


		Term Loans by Origination Year
(dollars in thousands)		2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
For the three months ended June 30, 2024
Residential real estate	Residential first lien	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
	Other residential	—		—		—		—		—		—		—		—
Consumer	Consumer	—		22		—		5		10		—		1		38
	Consumer other	1		—		—		—		—		160		—		161
Lease financing		—		946		900		223		15		—		—		2,084
Total gross other charge-offs		$	1	$	968	$	900	$	228	$	25	$	160	$	1	$	2,283

For the six months ended June 30, 2024
Residential real estate	Residential first lien	$	—	$	—	$	11	$	—	$	—	$	—	$	—	$	11
	Other residential	—		—		16		—		—		—		8		24
Consumer	Consumer	—		21		—		5		17		27		1		71
	Consumer other	1		—		—		—		—		362		—		363
Lease financing		—		1,069		2,270		338		52		20		—		3,749
Total gross other charge-offs		$	1	$	1,090	$	2,297	$	343	$	69	$	409	$	9	$	4,218

INVESTMENT SECURITIES (Tables)

6 Months Ended

Jun. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Investment Securities Classified as Available for Sale

Investment securities available for sale at June 30, 2024 and December 31, 2023 were as follows:


	June 30, 2024
(dollars in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities available for sale
U.S. Treasury securities	$	2,995	$	—	$	1	$	2,994
U.S. government sponsored entities and U.S. agency securities	52,440		131		1,740		50,831
Mortgage-backed securities - agency	790,311		882		87,017		704,176
Mortgage-backed securities - non-agency	89,379		596		3,793		86,182
State and municipal securities	73,063		160		7,072		66,151
Corporate securities	93,459		12		8,672		84,799
Other securities(1)	99,982		113		137		99,958
Total available for sale securities	$	1,201,629	$	1,894	$	108,432	$	1,095,091

(1)The fair value of other securities includes student loan asset backed securities of $63.5 million and structured financial products of $36.5 million.


	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
Corporate securities	109,598		41		10,467		99,172
Other securities(1)	27,646		3		84		27,565
Total available for sale securities	$	1,012,592	$	3,217	$	99,914	$	915,895

(1)The fair value of other securities includes structured financial products of $27.6 million.

Schedule of Debt Securities, Available-for-sale


(dollars in thousands)	Amortized cost		Fair value
Investment securities available for sale
Within one year	$	4,031	$	4,020
After one year through five years	72,993		70,366
After five years through ten years	150,875		138,034
After ten years	94,040		92,313
Mortgage-backed securities	879,690		790,358
Total available for sale securities	$	1,201,629	$	1,095,091

Proceeds and gross realized gains and losses on sales of investment securities available for sale for the three and six months ended June 30, 2024 and 2023 are summarized as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2024		2023		2024		2023
Investment securities available for sale
Proceeds from sales	$	45,825	$	15,467	$	45,825	$	99,960
Gross realized gains on sales	307		—		307		338
Gross realized losses on sales	(459)		(869)		(459)		(1,855)

Schedule of Unrealized Losses and Fair Values for Investment Securities


	June 30, 2024
	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	$	2,994	$	1	$	—	$	—	$	2,994	$	1
U.S. government sponsored entities and U.S. agency securities	36,004		86		8,346		1,654		44,350		1,740
Mortgage-backed securities - agency	189,165		5,139		404,360		81,878		593,525		87,017
Mortgage-backed securities - non-agency	12,911		183		18,476		3,610		31,387		3,793
State and municipal securities	57,644		6,845		1,387		227		59,031		7,072
Corporate securities	26,780		2,554		55,007		6,118		81,787		8,672
Other securities	65,687		137		—		—		65,687		137
Total available for sale securities	$	391,185	$	14,945	$	487,576	$	93,487	$	878,761	$	108,432


	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
Corporate securities	4,688		53		84,662		10,414		89,350		10,467
Other securities	14,763		84		—		—		14,763		84
Total available for sale securities	$	252,732	$	13,713	$	460,879	$	86,201	$	713,611	$	99,914

- 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

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured and Recorded at Fair Value


	June 30, 2024
(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	$	2,994	$	2,994	$	—	$	—
U.S. government sponsored entities and U.S. agency securities	50,831		—		50,831		—
Mortgage-backed securities - agency	704,176		—		704,176		—
Mortgage-backed securities - non-agency	86,182		—		86,182		—
State and municipal securities	66,151		—		66,151		—
Corporate securities	84,799		—		84,799		—
Other securities	99,958		—		99,958		—
Equity securities	4,563		4,563		—		—
Loans held for sale	5,555		—		5,555		—
Derivative assets	1,714		—		1,714		—

Total	$	1,106,923	$	7,557	$	1,099,366	$	—
Liabilities
Derivative liabilities	$	8,192	$	—	$	8,192	$	—

Total	$	8,192	$	—	$	8,192	$	—

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


Nonperforming loans	$	68,437	$	—	$	64,167	$	4,270
Other real estate owned	8,304		—		8,304		—


	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		—
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		—

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

The following table presents losses recognized on assets measured on a nonrecurring basis for the three and six months ended June 30, 2024 and 2023:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2024		2023		2024		2023


Nonperforming loans	$	3,647	$	3,573	13,870		4,676
Other real estate owned	730		—		730		—

Total losses on assets measured on a nonrecurring basis	$	4,377	$	3,573	$	14,600	$	4,676

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)

June 30, 2024

Nonperforming loans

4,270

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

19.32% - 25.69% (22.72%)

December 31, 2023

Nonperforming loans

669

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

24.38% - 100.00% (27.46%)

(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


	June 30, 2024						December 31, 2023
(dollars in thousands)	Aggregate fair value		Difference		Contractual principal		Aggregate fair value		Difference		Contractual principal

Residential loans held for sale	$	5,555	$	251	$	5,304	$	3,811	$	203	$	3,608


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2024		2023		2024	2023

Residential loans held for sale	$	(1)	$	50	17	149

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

The carrying values and estimated fair value of certain financial instruments not carried at fair value at June 30, 2024 and December 31, 2023 were as follows:


	June 30, 2024
(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	$	123,719	$	123,719	$	123,719	$	—	$	—
Federal funds sold	927		927		927		—		—

Loans	5,851,994		5,741,200		—		—		5,741,200
Accrued interest receivable	25,756		25,756		—		25,756		—

Liabilities
Deposits	$	6,118,023	$	6,098,416	$	—	$	6,098,416	$	—
Short-term borrowings	7,208		7,208		—		7,208		—
FHLB and other borrowings	600,000		598,416		—		598,416		—
Subordinated debt	91,656		84,135		—		84,135		—
Trust preferred debentures	50,921		53,848		—		53,848		—


	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		—

LOANS - Loans to Directors, Executive Officers, Principal Shareholders and Affiliates (Details) - Directors, Executive Officers, Principal Shareholders and Affiliates - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Notes Receivable [Roll Forward]
Beginning balance	$ 20,726	$ 19,519	$ 20,990	$ 19,776
New loans and other additions	500	2,367	500	2,367
Repayments and other reductions	(332)	(317)	(596)	(574)
Ending balance	$ 20,894	$ 21,569	$ 20,894	$ 21,569

FHLB ADVANCES AND OTHER BORROWINGS

6 Months Ended

Jun. 30, 2024

FHLB ADVANCES AND OTHER BORROWINGS

FHLB ADVANCES AND OTHER BORROWINGS

The following table summarizes our FHLB advances and other borrowings as of June 30, 2024 and December 31, 2023:


(dollars in thousands)	June 30, 2024		December 31, 2023


FHLB advances – fixed rate, fixed term at rates averaging 4.79% and 4.94% at June 30, 2024 and December 31, 2023 - maturing through April 2029	$	150,000	$	150,000
FHLB advances – putable fixed rate at rates averaging 3.34% and 3.07% at June 30, 2024 and December 31, 2023, respectively – maturing through May 2029 with call provisions through November 2024	130,000		160,000

FHLB advances – Short term fixed rate at rates of 5.41% and 5.45% at June 30, 2024 and December 31, 2023 – matured July 2024	320,000		166,000
Total FHLB advances and other borrowings	$	600,000	$	476,000

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 $2.94 billion and $2.98 billion at June 30, 2024 and December 31, 2023, respectively.

DERIVATIVE INSTRUMENTS - Interest Rate Lock Commitments and Forward Commitments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
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
Notional amount, asset	$ 5,679	$ 2,405
Fair value gain (loss)	120	62
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)	(13)	(83)
Notional amount, liability	$ 9,750	$ 5,000

- 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

REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company’s revenue from contracts with customers in the scope of Topic 606 is recognized within noninterest income in the consolidated statements of income. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30, 2024 and 2023.


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2024		2023		2024		2023
Noninterest income - in-scope of Topic 606
Wealth management revenue:
Trust management/administration fees	$	5,853	$	5,356	$	12,120	$	10,992
Investment advisory and brokerage fees	500		430		923		861

Other	448		483		890		827
Service charges on deposit accounts:
Nonsufficient fund fees	1,836		1,741		3,658		3,439
Other	1,285		936		2,579		1,806
Interchange revenues	3,563		3,696		6,921		7,108
Other income:
Merchant services revenue	357		398		701		756
Other	513		1,403		612		2,033
Noninterest income - out-of-scope of Topic 606	3,301		4,310		10,439		6,710
Total noninterest income	$	17,656	$	18,753	$	38,843	$	34,532

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

SUBORDINATED DEBT (Tables)

6 Months Ended

Jun. 30, 2024

Subordinated Borrowings [Abstract]

Schedule of Summary of Company's Subordinated Debt

The following table summarizes the Company’s subordinated debt at June 30, 2024 and December 31, 2023:


	Subordinated debt
	Fixed to Float
(dollars in thousands)	Issued September 2019			Issued September 2019			Total
At June 30, 2024
Outstanding amount	$	64,750		$	27,250		$	92,000
Carrying amount	64,663			26,993			91,656
Current rate	5.00		%	5.50		%
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		%
Maturity date	9/30/2029			9/30/2034
Optional redemption date	9/30/2024			9/30/2029
Fixed to variable conversion date	9/30/2024			9/30/2029
Variable rate	3-month SOFR plus 3.61%			3-month SOFR plus 4.05%
Interest payment terms	Semiannually			Semiannually

LOANS - Summary of Changes in the ACL on Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Changes in allowance for credit losses on loans
Balance, beginning of period	$ 78,057	$ 62,067	$ 68,502	$ 61,051
Provision for credit losses on loans	17,000	5,879	31,000	9,014
Charge-offs	(5,256)	(4,034)	(10,292)	(6,433)
Recoveries	2,382	1,038	2,973	1,318
Balance, end of period	92,183	64,950	92,183	64,950
Commercial Loan Portfolio
Changes in allowance for credit losses on loans
Charge-offs	(2,973)		(6,074)
Commercial Loan Portfolio \| Commercial
Changes in allowance for credit losses on loans
Balance, beginning of period	21,329	15,762	21,847	14,639
Provision for credit losses on loans	5,733	196	7,509	2,194
Charge-offs	(2,968)	(1,071)	(5,378)	(2,040)
Recoveries	153	403	269	497
Balance, end of period	24,247	15,290	24,247	15,290
Commercial Loan Portfolio \| Commercial real estate
Changes in allowance for credit losses on loans
Balance, beginning of period	21,367	28,216	20,229	29,290
Provision for credit losses on loans	(1,253)	2,427	424	2,097
Charge-offs	(5)	(1,544)	(696)	(2,290)
Recoveries	2,088	326	2,240	328
Balance, end of period	22,197	29,425	22,197	29,425
Commercial Loan Portfolio \| Construction and land development
Changes in allowance for credit losses on loans
Balance, beginning of period	12,629	2,442	4,163	2,435
Provision for credit losses on loans	336	1,049	8,802	1,056
Charge-offs	0	(334)	0	(334)
Recoveries	1	32	1	32
Balance, end of period	12,966	3,189	12,966	3,189
Residential Loan Portfolio \| Residential real estate
Changes in allowance for credit losses on loans
Balance, beginning of period	5,655	4,350	5,553	4,301
Provision for credit losses on loans	(475)	1,207	(393)	1,270
Charge-offs	0	(54)	(35)	(85)
Recoveries	13	48	68	65
Balance, end of period	5,193	5,551	5,193	5,551
Consumer Loan Portfolio \| Consumer
Changes in allowance for credit losses on loans
Balance, beginning of period	3,611	4,129	3,770	3,599
Provision for credit losses on loans	10,817	4	10,806	704
Charge-offs	(199)	(260)	(434)	(523)
Recoveries	63	80	150	173
Balance, end of period	14,292	3,953	14,292	3,953
Lease financing
Changes in allowance for credit losses on loans
Balance, beginning of period	13,466	7,168	12,940	6,787
Provision for credit losses on loans	1,842	996	3,852	1,693
Charge-offs	(2,084)	(771)	(3,749)	(1,161)
Recoveries	64	149	245	223
Balance, end of period	$ 13,288	$ 7,542	$ 13,288	$ 7,542

DEPOSITS (Tables)

6 Months Ended

Jun. 30, 2024

Deposits [Abstract]

Schedule Summarizes the Classification of Deposits

The following table summarizes the classification of deposits as of June 30, 2024 and December 31, 2023:


(dollars in thousands)	June 30, 2024		December 31, 2023
Noninterest-bearing demand	$	1,108,521	$	1,145,395
Interest-bearing:
Checking	2,343,533		2,511,840
Money market	1,143,668		1,135,629
Savings	538,462		559,267
Time	983,839		957,398
Total deposits	$	6,118,023	$	6,309,529

- 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 e
-Publisher SEC

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

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

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph a
-Subparagraph (5)
-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 (3)
-Publisher SEC

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

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Regulation S-K (SK)
-Number 229
-Section 1406
-Paragraph a
-Subparagraph (1)
-Publisher SEC

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

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

+ Details

CONSOLIDATED STATEMENTS OF CASH FLOWS—(UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net income	$ 20,635	$ 43,347
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	30,800	9,014
Depreciation on premises and equipment	2,478	2,419
Amortization of intangible assets	2,105	2,499
Amortization of operating lease right-of-use asset	803	844
Amortization of loan servicing rights	1,351	172
Share-based compensation expense	1,406	1,192
Increase in cash surrender value of life insurance	(3,726)	(1,767)
Investment securities accretion, net	(2,340)	(808)
Loss on sales of investment securities, net	152	1,517
Gain on repurchase of subordinated debt	(167)	(676)
Gain on sales of other real estate owned	(22)	(819)
Impairment on other real estate owned	730	0
Origination of loans held for sale	(32,361)	(27,259)
Proceeds from sales of loans held for sale	45,807	34,344
Gain on sale of loans held for sale	(892)	(1,144)
Net change in operating assets and liabilities:
Accrued interest receivable	(822)	(687)
Other assets	(16,278)	(11,380)
Accrued expenses and other liabilities	(4,676)	9,995
Net cash provided by operating activities	44,983	60,803
Cash flows from investing activities:
Purchases of investment securities available for sale	(322,891)	(245,744)
Proceeds from sales of investment securities available for sale	45,825	99,960
Maturities and payments on investment securities available for sale	91,216	29,455
Purchases of equity securities	(150)	(192)
Proceeds from sales of equity securities	0	5,148
Net decrease (increase) in loans	257,249	(76,502)
Purchases of premises and equipment	(2,078)	(4,688)
Purchases of nonmarketable equity securities	(114,232)	(66,572)
Proceeds from redemptions of nonmarketable equity securities	108,652	65,897
Proceeds from sales of other real estate owned	301	7,346
Net cash provided by (used in) investing activities	63,892	(185,892)
Cash flows from financing activities:
Net (decrease) increase in deposits	(191,506)	61,896
Net decrease in short-term borrowings	(27,657)	(20,528)
Net increase in short-term FHLB borrowings	179,000	10,000
Proceeds from long-term FHLB borrowings	130,000	105,000
Payments made on long-term FHLB borrowings	(185,000)	0
Payments made on subordinated debt	(1,833)	(5,845)
Cash dividends paid on preferred stock	(4,456)	(4,456)
Cash dividends paid on common stock	(13,536)	(13,408)
Common stock repurchased	(4,970)	(8,967)
Proceeds from issuance of common stock under employee benefit plans	668	1,461
Net cash (used in) provided by financing activities	(119,290)	125,153
Net (decrease) increase in cash and cash equivalents	(10,415)	64
Cash and cash equivalents:
Beginning of period	135,061	160,631
End of period	124,646	160,695
Supplemental disclosures of cash flow information:
Interest paid on deposits and borrowed funds	92,962	69,828
Income tax paid (net of refunds)	21,020	11,024
Supplemental disclosures of noncash investing and financing activities:
Transfer of loans to other real estate owned	122	0
Right of use assets obtained in exchange for lease obligations	1,539	1,348
Transfer of loan servicing rights held for sale to loan servicing rights, at lower of cost or market	0	20,745
Pending settlements on securities purchased	$ 1,000	$ 0

COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables)

6 Months Ended

Jun. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Loan Commitments

The commitments are principally tied to variable rates. Loan commitments as of June 30, 2024 and December 31, 2023 were as follows:


(dollars in thousands)	June 30, 2024		December 31, 2023
Commitments to extend credit	$	756,302	$	855,489
Financial guarantees – standby letters of credit	23,502		22,745

EARNINGS PER COMMON SHARE

6 Months Ended

Jun. 30, 2024

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 three and six months ended June 30, 2024 and 2023:


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands, except per share data)	2024		2023		2024		2023
Net income	$	6,750	$	21,575	$	20,635	$	43,347
Preferred dividends declared	(2,228)		(2,228)		(4,456)		(4,456)

Net income available to common shareholders	4,522		19,347		16,179		38,891
Common shareholder dividends	(6,661)		(6,579)		(13,327)		(13,248)
Unvested restricted stock award dividends	(103)		(80)		(209)		(160)
Undistributed earnings to unvested restricted stock awards	—		(149)		(40)		(300)
Undistributed earnings to common shareholders	$	(2,242)	$	12,539	$	2,603	$	25,183
Basic
Distributed earnings to common shareholders	$	6,661	$	6,579	$	13,327	$	13,248
Undistributed (loss) earnings to common shareholders	(2,242)		12,539		2,603		25,183
Total common shareholders earnings, basic	$	4,419	$	19,118	$	15,930	$	38,431
Diluted
Distributed earnings to common shareholders	$	6,661	$	6,579	$	13,327	$	13,248
Undistributed (loss) earnings to common shareholders	(2,242)		12,539		2,603		25,183
Total common shareholders earnings	4,419		19,118		15,930		38,431
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	—		—		—		—
Total common shareholders earnings, diluted	$	4,419	$	19,118	$	15,930	$	38,431
Weighted average common shares outstanding, basic	21,731,195		22,200,917		21,753,056		22,338,627
Dilutive effect of options	3,654		4,162		8,436		10,354
Weighted average common shares outstanding, diluted	21,734,849		22,205,079		21,761,492		22,348,981
Basic earnings per common share	$	0.20	$	0.86	$	0.73	$	1.72
Diluted earnings per common share	0.20		0.86		0.73		1.72

Antidilutive stock options(1)	235,652		375,912		235,652		375,912

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring and Nonrecurring basis (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Assets
Investment securities available for sale	$ 1,095,091		$ 1,095,091		$ 915,895
Equity securities	$ 4,563		$ 4,563		$ 4,501
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other assets		Other assets		Other assets
U.S. Treasury securities
Assets
Investment securities available for sale	$ 2,994		$ 2,994		$ 1,097
U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	50,831		50,831		72,572
Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	86,182		86,182		83,529
State and municipal securities
Assets
Investment securities available for sale	66,151		66,151		57,460
Corporate securities
Assets
Investment securities available for sale	84,799		84,799		99,172
Other securities
Assets
Investment securities available for sale	99,958		99,958		27,565
Recurring member
Assets
Loans held for sale	5,555		5,555		3,811
Derivative assets	1,714		1,714		372
Total	1,106,923		1,106,923		924,579
Liabilities
Derivative liabilities	8,192		8,192		8,836
Total	8,192		8,192		8,836
Recurring member \| U.S. Treasury securities
Assets
Investment securities available for sale	2,994		2,994		1,097
Recurring member \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	50,831		50,831		72,572
Recurring member \| Mortgage-backed securities - agency
Assets
Investment securities available for sale	704,176		704,176		574,500
Recurring member \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	86,182		86,182		83,529
Recurring member \| State and municipal securities
Assets
Investment securities available for sale	66,151		66,151		57,460
Recurring member \| Corporate securities
Assets
Investment securities available for sale	84,799		84,799		99,172
Recurring member \| Other securities
Assets
Investment securities available for sale	99,958		99,958
Recurring member \| Equity securities
Assets
Equity securities	4,563		4,563		4,501
Recurring member \| Level 1
Assets
Loans held for sale	0		0		0
Derivative assets	0		0		0
Total	7,557		7,557		5,598
Liabilities
Derivative liabilities	0		0		0
Total	0		0		0
Recurring member \| Level 1 \| U.S. Treasury securities
Assets
Investment securities available for sale	2,994		2,994		1,097
Recurring member \| Level 1 \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 1 \| Mortgage-backed securities - agency
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 1 \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 1 \| State and municipal securities
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 1 \| Corporate securities
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 1 \| Other securities
Assets
Investment securities available for sale	0		0
Recurring member \| Level 1 \| Equity securities
Assets
Equity securities	4,563		4,563		4,501
Recurring member \| Level 2
Assets
Loans held for sale	5,555		5,555		3,811
Derivative assets	1,714		1,714		372
Total	1,099,366		1,099,366		918,981
Liabilities
Derivative liabilities	8,192		8,192		8,836
Total	8,192		8,192		8,836
Recurring member \| Level 2 \| U.S. Treasury securities
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 2 \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	50,831		50,831		72,572
Recurring member \| Level 2 \| Mortgage-backed securities - agency
Assets
Investment securities available for sale	704,176		704,176		574,500
Recurring member \| Level 2 \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	86,182		86,182		83,529
Recurring member \| Level 2 \| State and municipal securities
Assets
Investment securities available for sale	66,151		66,151		57,460
Recurring member \| Level 2 \| Corporate securities
Assets
Investment securities available for sale	84,799		84,799		99,172
Recurring member \| Level 2 \| Other securities
Assets
Investment securities available for sale	99,958		99,958
Recurring member \| Level 2 \| Equity securities
Assets
Equity securities	0		0		0
Recurring member \| Level 3
Assets
Loans held for sale	0		0		0
Derivative assets	0		0		0
Total	0		0		0
Liabilities
Derivative liabilities	0		0		0
Total	0		0		0
Recurring member \| Level 3 \| U.S. Treasury securities
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 3 \| U.S. government sponsored entities and U.S. agency securities
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 3 \| Mortgage-backed securities - agency
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 3 \| Mortgage-backed securities - non-agency
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 3 \| State and municipal securities
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 3 \| Corporate securities
Assets
Investment securities available for sale	0		0		0
Recurring member \| Level 3 \| Other securities
Assets
Investment securities available for sale	0		0
Recurring member \| Level 3 \| Equity securities
Assets
Equity securities	0		0		0
Non recurring member
Assets measured at fair value on a non-recurring basis:
Nonperforming loans	68,437		68,437		4,633
Other real estate owned	8,304		8,304		9,112
Losses recognized on assets measured on non-recurring basis
Nonperforming loans	3,647	$ 3,573	13,870	$ 4,676
Other real estate owned	730	0	730	0
Total losses on assets measured on a nonrecurring basis	4,377	$ 3,573	14,600	$ 4,676
Non recurring member \| Level 1
Assets measured at fair value on a non-recurring basis:
Nonperforming loans	0		0		0
Other real estate owned	0		0		0
Non recurring member \| Level 2
Assets measured at fair value on a non-recurring basis:
Nonperforming loans	64,167		64,167		3,964
Other real estate owned	8,304		8,304		9,112
Non recurring member \| Level 3
Assets measured at fair value on a non-recurring basis:
Nonperforming loans	4,270		4,270		669
Other real estate owned	$ 0		$ 0		$ 0

DERIVATIVE INSTRUMENTS - Cash Flow Hedges (Details) - Cash Flow Hedge - Receive Fixed, Pay Variable Interest Rate Swaps - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Derivative disclosures
Notional Amount	$ 425,000	$ 400,000
Fair value gain included in other assets	1,235	0
Fair value loss included in other liabilities	7,820	8,443
Tax effected amount included in accumulated other comprehensive (loss) income	$ (4,807)	$ (6,164)
Average remaining life in years	2 years 3 months 21 days	2 years 8 months 1 day
Long
Derivative disclosures
Weighted average rate	6.37%	6.55%
Short
Derivative disclosures
Weighted average rate	5.40%	5.41%

INVESTMENT SECURITIES - Narrative (Details)	Jun. 30, 2024 security
Investments, Debt and Equity Securities [Abstract]
Number of securities in unrealized loss position (in security)	296
Aggregate depreciation percentage	10.98%

DERIVATIVE INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments, Fair Value and Notional Amounts


	Notional amount				Fair value gain (loss)
(dollars in thousands)	June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023
Derivative instruments (included in other assets):
Interest rate lock commitments	$	5,679	$	2,405	$	120	$	62


Derivative instruments (included in other liabilities):
Forward commitments to sell mortgage-backed securities	9,750		5,000		(13)		(83)

The following table summarizes the Company's derivatives designated as hedges at June 30, 2024 and December 31, 2023:


(dollars in thousands)	June 30, 2024			December 31, 2023

Notional Amount	$	425,000		$	400,000
Fair value gain included in other assets	1,235			—
Fair value loss included in other liabilities	7,820			8,443
Tax effected amount included in accumulated other comprehensive (loss) income	(4,807)			(6,164)
Average remaining life in years	2.31			2.67
Weighted average pay rate	6.37		%	6.55		%
Weighted average receive rate	5.40		%	5.41		%

CONSOLIDATED STATEMENTS OF INCOME—(UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Interest income:
Loans, including fees: Taxable	$ 88,252	$ 91,350	$ 177,247	$ 178,809
Loans, including fees: Tax exempt	384	427	774	852
Loans held for sale	84	59	139	75
Investment securities:
Taxable	12,483	6,899	22,662	12,269
Tax exempt	254	305	672	799
Nonmarketable equity securities	963	599	1,650	1,394
Federal funds sold and cash investments	875	852	1,826	1,832
Total interest income	103,295	100,491	204,970	196,030
Interest expense:
Deposits	39,476	33,617	78,690	60,022
Short-term borrowings	308	14	1,144	39
Federal Home Loan Bank advances and other borrowings	5,836	5,396	8,872	11,402
Subordinated debt	1,265	1,335	2,545	2,705
Trust preferred debentures	1,358	1,289	2,747	2,518
Total interest expense	48,243	41,651	93,998	76,686
Net interest income	55,052	58,840	110,972	119,344
Provision for credit losses on loans	17,000	5,879	31,000	9,014
Recapture of credit losses on unfunded commitments	(200)	0	(200)	0
Total provision for credit losses	16,800	5,879	30,800	9,014
Net interest income after provision for credit losses	38,252	52,961	80,172	110,330
Noninterest income:
Wealth management revenue	6,801	6,269	13,933	12,680
Service charges on deposit accounts	3,121	2,677	6,237	5,245
Interchange revenue	3,563	3,696	6,921	7,108
Residential mortgage banking revenue	557	540	1,084	945
Income on company-owned life insurance	1,925	891	3,726	1,767
Loss on sales of investment securities, net	(152)	(869)	(152)	(1,517)
Other income	1,841	5,549	7,094	8,304
Total noninterest income	17,656	18,753	38,843	34,532
Noninterest expense:
Salaries and employee benefits	22,872	22,857	46,974	47,100
Occupancy and equipment	3,964	3,879	8,106	8,322
Data processing	7,205	6,544	13,927	12,855
FDIC insurance	1,219	1,196	2,493	2,525
Professional services	2,243	1,663	4,498	3,423
Marketing	741	670	1,478	1,373
Communications	336	496	678	1,007
Loan expense	1,250	1,420	2,481	2,238
Amortization of intangible assets	1,016	1,208	2,105	2,499
Other expense	6,633	2,961	9,606	6,034
Total noninterest expense	47,479	42,894	92,346	87,376
Income before income taxes	8,429	28,820	26,669	57,486
Income taxes	1,679	7,245	6,034	14,139
Net income	6,750	21,575	20,635	43,347
Preferred dividends	2,228	2,228	4,456	4,456
Net income available to common shareholders	$ 4,522	$ 19,347	$ 16,179	$ 38,891
Per common share data:
Basic earnings per common share (in dollars per share)	$ 0.20	$ 0.86	$ 0.73	$ 1.72
Diluted earnings per common share (in dollars per share)	$ 0.20	$ 0.86	$ 0.73	$ 1.72
Weighted average common shares outstanding (in shares)	21,731,195	22,200,917	21,753,056	22,338,627
Weighted average diluted common shares outstanding (in shares)	21,734,849	22,205,079	21,761,492	22,348,981

LOANS - Non-accrual (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Impaired loans (excluding PCI loans) by portfolio
Threshold amount for non accrual loans	$ 500
Nonaccrual
Nonaccrual with allowance	74,749	$ 28,267
Nonaccrual with no allowance	35,709	27,139
Total nonaccrual	110,458	55,406
Commercial Loan Portfolio
Nonaccrual
Nonaccrual with allowance	58,663	15,818
Nonaccrual with no allowance	35,239	26,613
Total nonaccrual	93,902	42,431
Commercial Loan Portfolio \| Commercial
Nonaccrual
Nonaccrual with allowance	6,329	3,560
Nonaccrual with no allowance	0	0
Total nonaccrual	6,329	3,560
Commercial Loan Portfolio \| Commercial other
Nonaccrual
Nonaccrual with allowance	7,874	4,941
Nonaccrual with no allowance	0	0
Total nonaccrual	7,874	4,941
Commercial Loan Portfolio \| Commercial real estate non-owner occupied
Nonaccrual
Nonaccrual with allowance	13,061	1,614
Nonaccrual with no allowance	7,648	14,098
Total nonaccrual	20,709	15,712
Commercial Loan Portfolio \| Commercial real estate owner occupied
Nonaccrual
Nonaccrual with allowance	10,827	4,276
Nonaccrual with no allowance	0	6,500
Total nonaccrual	10,827	10,776
Commercial Loan Portfolio \| Multi-family
Nonaccrual
Nonaccrual with allowance	3,547	240
Nonaccrual with no allowance	16,997	6,015
Total nonaccrual	20,544	6,255
Commercial Loan Portfolio \| Farmland
Nonaccrual
Nonaccrual with allowance	1,301	1,148
Nonaccrual with no allowance	0	0
Total nonaccrual	1,301	1,148
Commercial Loan Portfolio \| Construction and land development
Nonaccrual
Nonaccrual with allowance	15,724	39
Nonaccrual with no allowance	10,594	0
Total nonaccrual	26,318	39
Residential Loan Portfolio \| Residential first lien
Nonaccrual
Nonaccrual with allowance	3,285	2,583
Nonaccrual with no allowance	455	490
Total nonaccrual	3,740	3,073
Residential Loan Portfolio \| Other residential
Nonaccrual
Nonaccrual with allowance	609	635
Nonaccrual with no allowance	0	0
Total nonaccrual	609	635
Consumer Loan Portfolio \| Consumer
Nonaccrual
Nonaccrual with allowance	77	134
Nonaccrual with no allowance	0	0
Total nonaccrual	77	134
Lease financing
Nonaccrual
Nonaccrual with allowance	12,115	9,097
Nonaccrual with no allowance	15	36
Total nonaccrual	$ 12,130	$ 9,133

EARNINGS PER COMMON SHARE - Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income	$ 6,750	$ 21,575	$ 20,635	$ 43,347
Preferred dividends declared	(2,228)	(2,228)	(4,456)	(4,456)
Net income available to common shareholders	4,522	19,347	16,179	38,891
Common shareholder dividends	(6,661)	(6,579)	(13,327)	(13,248)
Unvested restricted stock award dividends	(103)	(80)	(209)	(160)
Undistributed earnings to unvested restricted stock awards	0	(149)	(40)	(300)
Undistributed earnings to common shareholders	(2,242)	12,539	2,603	25,183
Basic
Distributed earnings to common shareholders	6,661	6,579	13,327	13,248
Undistributed (loss) earnings to common shareholders	(2,242)	12,539	2,603	25,183
Total common shareholders earnings, basic	4,419	19,118	15,930	38,431
Diluted
Distributed earnings to common shareholders	6,661	6,579	13,327	13,248
Undistributed (loss) earnings to common shareholders	(2,242)	12,539	2,603	25,183
Total common shareholders earnings	4,419	19,118	15,930	38,431
Add back:
Undistributed earnings reallocated from unvested restricted stock awards	0	0	0	0
Total common shareholders earnings, diluted	$ 4,419	$ 19,118	$ 15,930	$ 38,431
Weighted average common shares outstanding, basic (in shares)	21,731,195	22,200,917	21,753,056	22,338,627
Dilutive effect of options (in shares)	3,654	4,162	8,436	10,354
Weighted average common shares outstanding, diluted (in shares)	21,734,849	22,205,079	21,761,492	22,348,981
Basic earnings per common share (in dollars per share)	$ 0.20	$ 0.86	$ 0.73	$ 1.72
Diluted earnings per common share (in dollars per share)	$ 0.20	$ 0.86	$ 0.73	$ 1.72
Stock option
Add back:
Antidilutive stock options (in shares)	235,652	375,912	235,652	375,912

PREMISES, EQUIPMENT AND LEASES - Premises and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Lease right-of-use assets	$ 8,409	$ 7,673
Total	139,574	137,542
Accumulated depreciation	(56,534)	(54,728)
Premises and equipment, net	83,040	82,814
Land
Property, Plant and Equipment [Line Items]
Premises and equipment gross	15,968	15,968
Buildings and improvements
Property, Plant and Equipment [Line Items]
Premises and equipment gross	79,431	78,104
Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment gross	$ 35,766	$ 35,797

LOANS - Narrative (Details)	6 Months Ended
LOANS - Narrative (Details)	Jun. 30, 2024 region
Receivables [Abstract]
Number of main regions	4

LOANS - Aging Status of Recorded Investment (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Aging Status of recorded investment
Loans	$ 5,851,994	$ 6,131,079
Total nonaccrual	110,458	55,406
Nonperforming
Aging Status of recorded investment
Total nonaccrual	110,458	55,406
30-59 days past due \| Performing
Aging Status of recorded investment
Loans	42,240	50,675
60-89 days past due \| Performing
Aging Status of recorded investment
Loans	11,805	32,103
Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	1,666	945
Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	55,711	83,723
Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	5,685,825	5,991,950
Commercial Loan Portfolio
Aging Status of recorded investment
Loans	4,298,900	4,341,968
Total nonaccrual	93,902	42,431
Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	93,902	42,431
Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	28,819	35,597
Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	4,458	25,347
Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	840	781
Commercial Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	34,117	61,725
Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	4,170,881	4,237,812
Lease financing
Aging Status of recorded investment
Loans	428,659	473,350
Total nonaccrual	12,130	9,133
Lease financing \| Performing
Aging Status of recorded investment
Loans	416,213	464,217
Lease financing \| Nonperforming
Aging Status of recorded investment
Loans	12,446	9,133
Total nonaccrual	12,130	9,133
Lease financing \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	6,743	7,622
Lease financing \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	3,587	1,826
Lease financing \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	316	0
Lease financing \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	10,646	9,448
Lease financing \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	405,883	454,769
Commercial \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	829,888	825,938
Total nonaccrual	6,329	3,560
Commercial \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	6,329	3,560
Commercial \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	9,389	9,340
Commercial \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	564	504
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	9,953	9,844
Commercial \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	813,606	812,534
Commercial other \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	570,979	656,592
Total nonaccrual	7,874	4,941
Commercial other \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	7,874	4,941
Commercial other \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	11,730	11,156
Commercial other \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	3,630	5,990
Commercial other \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	840	781
Commercial other \| Commercial Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	16,200	17,927
Commercial other \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	546,905	633,724
Commercial real estate non-owner occupied \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	1,621,102	1,622,668
Total nonaccrual	20,709	15,712
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	20,709	15,712
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	65	384
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	0	0
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	65	384
Commercial real estate non-owner occupied \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	1,600,328	1,606,572
Commercial real estate owner occupied \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	438,117	436,857
Total nonaccrual	10,827	10,776
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	10,827	10,776
Commercial real estate owner occupied \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	7,635	0
Commercial real estate owner occupied \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	264	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	7,899	0
Commercial real estate owner occupied \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	419,391	426,081
Multi-family \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	293,863	279,904
Total nonaccrual	20,544	6,255
Multi-family \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	20,544	6,255
Multi-family \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	0	14,506
Multi-family \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	0	8,140
Multi-family \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	0	0
Multi-family \| Commercial Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	0	22,646
Multi-family \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	273,319	251,003
Farmland \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	68,423	67,416
Total nonaccrual	1,301	1,148
Farmland \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	1,301	1,148
Farmland \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	0	0
Farmland \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	0	120
Farmland \| Commercial Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	0	0
Farmland \| Commercial Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	0	120
Farmland \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	67,122	66,148
Construction and land development \| Commercial Loan Portfolio
Aging Status of recorded investment
Loans	476,528	452,593
Total nonaccrual	26,318	39
Construction and land development \| Commercial Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Total nonaccrual	26,318	39
Construction and land development \| Commercial Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	0	211
Construction and land development \| Commercial Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	0	10,593
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	0	10,804
Construction and land development \| Commercial Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	450,210	441,750
Residential first lien \| Residential Loan Portfolio
Aging Status of recorded investment
Loans	315,039	317,388
Total nonaccrual	3,740	3,073
Residential first lien \| Residential Loan Portfolio \| Performing
Aging Status of recorded investment
Loans	310,789	314,154
Residential first lien \| Residential Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Loans	4,250	3,234
Total nonaccrual	3,740	3,073
Residential first lien \| Residential Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	423	69
Residential first lien \| Residential Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	0	299
Residential first lien \| Residential Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	510	161
Residential first lien \| Residential Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	933	529
Residential first lien \| Residential Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	310,366	313,786
Other residential \| Residential Loan Portfolio
Aging Status of recorded investment
Loans	63,354	63,195
Total nonaccrual	609	635
Other residential \| Residential Loan Portfolio \| Performing
Aging Status of recorded investment
Loans	62,745	62,560
Other residential \| Residential Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Loans	609	635
Total nonaccrual	609	635
Other residential \| Residential Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	49	100
Other residential \| Residential Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	9	50
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	58	150
Other residential \| Residential Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	62,687	62,410
Consumer \| Consumer Loan Portfolio
Aging Status of recorded investment
Loans	94,763	107,743
Total nonaccrual	77	134
Consumer \| Consumer Loan Portfolio \| Performing
Aging Status of recorded investment
Loans	94,686	107,609
Consumer \| Consumer Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Loans	77	134
Total nonaccrual	77	134
Consumer \| Consumer Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	109	62
Consumer \| Consumer Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	11	20
Consumer \| Consumer Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	0	0
Consumer \| Consumer Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	120	82
Consumer \| Consumer Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	94,566	107,527
Consumer other \| Consumer Loan Portfolio
Aging Status of recorded investment
Loans	651,279	827,435
Consumer other \| Consumer Loan Portfolio \| Performing
Aging Status of recorded investment
Loans	651,279	827,432
Consumer other \| Consumer Loan Portfolio \| Nonperforming
Aging Status of recorded investment
Loans	0	3
Total nonaccrual	0	0
Consumer other \| Consumer Loan Portfolio \| 30-59 days past due \| Performing
Aging Status of recorded investment
Loans	6,097	7,225
Consumer other \| Consumer Loan Portfolio \| 60-89 days past due \| Performing
Aging Status of recorded investment
Loans	3,740	4,561
Consumer other \| Consumer Loan Portfolio \| Past due 90 days or more \| Performing
Aging Status of recorded investment
Loans	0	3
Consumer other \| Consumer Loan Portfolio \| Financial Asset, Past Due \| Performing
Aging Status of recorded investment
Loans	9,837	11,789
Consumer other \| Consumer Loan Portfolio \| Financial Asset, Not Past Due \| Performing
Aging Status of recorded investment
Loans	$ 641,442	$ 815,646