Level One Bancorp (FRMEP) 10-Q 5 Nov 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2021	Oct. 29, 2021
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-38458
Entity Registrant Name	LEVEL ONE BANCORP, INC.
Entity Incorporation, State or Country Code	MI
Entity Tax Identification Number	71-1015624
Entity Address, Address Line One	32991 Hamilton Court
Entity Address, City or Town	Farmington Hills,
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48334
City Area Code	248
Local Phone Number	737-0300
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,641,044
Entity Central Index Key	0001412707
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	LEVL
Security Exchange Name	NASDAQ
Depositary Shares, each representing a 1/100th interest in a share of 7.50% Non-Cumulative Perpetual Preferred Stock, Series B
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/100th interest in a share of 7.50% Non-Cumulative Perpetual Preferred Stock, Series B
Trading Symbol	LEVLP
Security Exchange Name	NASDAQ

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 293,824	$ 264,071
Securities available-for-sale	389,528	302,732
Other investments	14,398	14,398
Mortgage loans held for sale, at fair value	15,351	43,482
Loans:
Total loans	1,719,717	1,723,537
Less: Allowance for loan losses	(21,731)	(22,297)
Net loans	1,697,986	1,701,240
Premises and equipment, net	15,170	15,834
Goodwill	35,554	35,554
Mortgage servicing rights, net	5,051	3,361
Core deposit intangibles, net	2,695	3,196
Bank-owned life insurance	29,774	18,200
Income tax benefit	4,041	3,686
Interest receivable and other assets	40,511	37,228
Total assets	2,543,883	2,442,982
Deposits:
Noninterest-bearing demand deposits	791,879	618,677
Interest-bearing demand deposits	179,814	127,920
Money market and savings deposits	631,551	619,900
Time deposits	463,748	596,815
Total deposits	2,066,992	1,963,312
Borrowings	182,058	185,684
Subordinated notes	29,668	44,592
Other liabilities	31,231	34,067
Total liabilities	2,309,949	2,227,655
Shareholders' equity
Preferred stock, no par value per share; authorized—50,000 shares; issued and outstanding—10,000 shares, with a liquidation preference of $2,500 per share, at September 30, 2021 and December 31, 2020	23,372	23,372
Common stock, no par value per share; authorized—20,000,000 shares; issued and outstanding—7,639,544 shares at September 30, 2021 and 7,633,780 shares at December 31, 2020	86,926	87,615
Retained earnings	118,781	96,158
Accumulated other comprehensive income, net of tax	4,855	8,182
Total shareholders' equity	233,934	215,327
Total liabilities and shareholders' equity	2,543,883	2,442,982
Originated loans
Loans:
Total loans	1,537,145	1,498,458
Acquired loans
Loans:
Total loans	$ 182,572	$ 225,079

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, shares authorized (in shares)	50,000	50,000
Preferred stock, shares issued (in shares)	10,000	10,000
Preferred stock, shares outstanding (in shares)	10,000	10,000
Preferred stock, liquidation preference (in dollars per share)	$ 2,500	$ 2,500
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	7,639,544	7,633,780
Common stock, shares outstanding (in shares)	7,639,544	7,633,780

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Securities:
Taxable	$ 1,054	$ 652	$ 2,895	$ 1,930
Tax-exempt	630	613	1,880	1,894
Federal funds sold and other investments	191	250	518	817
Total interest income	22,322	20,245	65,610	60,458
Interest Expense
Deposits	965	2,323	3,443	9,039
Borrowed funds	468	693	1,409	1,866
Subordinated notes	374	632	1,470	1,903
Total interest expense	1,807	3,648	6,322	12,808
Net interest income	20,515	16,597	59,288	47,650
Provision expense (benefit) for loan losses	(1,189)	4,270	(384)	10,334
Net interest income after provision for loan losses	21,704	12,327	59,672	37,316
Noninterest income
Service charges on deposits	859	616	2,436	1,798
Net gain on sales of securities	0	434	20	1,862
Mortgage banking activities	4,216	7,108	12,738	15,380
Other charges and fees	966	967	2,451	2,564
Total noninterest income	6,041	9,125	17,645	21,604
Noninterest expense
Salary and employee benefits	10,551	9,862	29,825	28,090
Occupancy and equipment expense	1,680	1,678	4,971	4,773
Professional service fees	847	808	2,264	2,141
Acquisition and due diligence fees	0	17	0	1,664
FDIC premium expense	244	287	778	722
Marketing expense	428	257	842	709
Loan processing expense	231	262	755	690
Data processing expense	928	844	3,209	2,601
Core deposit premium amortization	167	192	501	576
Other expense	913	919	2,571	2,805
Noninterest expense	15,989	15,126	45,716	44,771
Income before income taxes	11,756	6,326	31,601	14,149
Income tax provision	2,291	1,117	6,198	2,109
Net income	9,465	5,209	25,403	12,040
Preferred stock dividends	468	0	1,406	0
Net income available to common shareholders	$ 8,997	$ 5,209	$ 23,997	$ 12,040
Per common share data:
Basic earnings per common share (in dollars per share)	$ 1.19	$ 0.68	$ 3.15	$ 1.56
Diluted earnings per common share (in dollars per share)	1.16	0.67	3.10	1.55
Cash dividends declared per common share (in dollars per share)	$ 0.06	$ 0.05	$ 0.18	$ 0.15
Weighted average common shares outstanding—basic (in shares)	7,519	7,675	7,526	7,640
Weighted average common shares outstanding - diluted (in shares)	7,638	7,712	7,631	7,701
Originated
Interest income
Loans, including fees	$ 17,796	$ 15,274	$ 51,785	$ 44,630
Acquired
Interest income
Loans, including fees	$ 2,651	$ 3,456	$ 8,532	$ 11,187

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - (UNAUDITED) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income		$ 9,465	$ 5,209	$ 25,403	$ 12,040
Other comprehensive income:
Unrealized gains (losses) on securities available-for-sale		(273)	1,425	(4,192)	7,497
Reclassification adjustment for gains included in income		0	(434)	(20)	(1,862)
Tax effect	[1]	57	(208)	885	(1,184)
Net unrealized gains (losses) on securities available-for-sale, net of tax		(216)	783	(3,327)	4,451
Total comprehensive income, net of tax		$ 9,249	$ 5,992	$ 22,076	$ 16,491
[1]	Includes no tax expense (benefit) related to the reclassification adjustment for gains (losses) included in income for the three months ended September 30, 2021. There was $91 thousand of tax expense related to the reclassification adjustment for gains included in income for the three months ended September 30, 2020. There was $4 thousand and $391 thousand of tax expense related to the reclassification adjustment for gains included in income for the nine months ended September 30, 2021 and 2020, respectively.

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - (UNAUDITED) - (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Tax expense (benefit) related to reclassification	$ 0	$ 91	$ 4	$ 391

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - (UNAUDITED) - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income
Beginning balance at Dec. 31, 2019	$ 170,703	$ 0	$ 89,345	$ 77,766	$ 3,592
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	12,040			12,040
Other comprehensive income	4,451				4,451
Redeemed stock	(620)		(620)
Preferred stock offering, net of issuance costs	23,370	23,370
Common stock dividends declared	(1,160)			(1,160)
Exercise of stock options	95		95
Stock-based compensation expense, net of tax impact	589		589
Ending balance at Sep. 30, 2020	209,468	23,370	89,409	88,646	8,043
Beginning balance at Jun. 30, 2020	180,259	0	89,175	83,824	7,260
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	5,209			5,209
Other comprehensive income	783				783
Preferred stock offering, net of issuance costs	23,370	23,370
Common stock dividends declared	(387)			(387)
Stock-based compensation expense, net of tax impact	234		234
Ending balance at Sep. 30, 2020	209,468	23,370	89,409	88,646	8,043
Beginning balance at Dec. 31, 2020	215,327	23,372	87,615	96,158	8,182
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	25,403			25,403
Other comprehensive income	(3,327)				(3,327)
Redeemed stock	(1,364)		(1,364)
Dividends on 7.50% Series B Preferred Stock	(1,406)			(1,406)
Common stock dividends declared	(1,374)			(1,374)
Exercise of stock options	243		243
Stock-based compensation expense, net of tax impact	432		432
Ending balance at Sep. 30, 2021	233,934	23,372	86,926	118,781	4,855
Beginning balance at Jun. 30, 2021	225,409	23,372	86,723	110,243	5,071
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,465			9,465
Other comprehensive income	(216)				(216)
Dividends on 7.50% Series B Preferred Stock	(468)			(468)
Common stock dividends declared	(459)			(459)
Stock-based compensation expense, net of tax impact	203		203
Ending balance at Sep. 30, 2021	$ 233,934	$ 23,372	$ 86,926	$ 118,781	$ 4,855

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - (UNAUDITED) (Parenthetical) - $ / shares	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Statement of Stockholders' Equity [Abstract]
Redeemed stock (in shares)	59,645	25,256
Preferred stock, interest rate	7.50%
Cash dividend declared (in dollars per share)	$ 0.18	$ 0.15
Exercise of stock options (in shares)	23,800	10,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities
Net income	$ 25,403	$ 12,040
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of fixed assets	1,204	1,259
Amortization of core deposit intangibles	501	576
Stock-based compensation expense	569	653
Provision expense (benefit) for loan losses	(384)	10,334
Net securities premium amortization	2,180	1,526
Net gain on sales of securities	(20)	(1,862)
Originations of loans held for sale	(336,993)	(409,312)
Proceeds from sales of loans	371,371	377,238
Net gain on sales of loans	(12,988)	(15,373)
Accretion on acquired purchase credit impaired loans	(1,160)	(1,350)
Gain on sale of other real estate owned and repossessed assets	0	(263)
Increase in cash surrender value of life insurance	(474)	(353)
Amortization of debt issuance costs	76	115
Provision (benefit) for deferred income taxes	932	(3,758)
Net change in accrued interest receivable and other assets	(2,341)	(13,433)
Net change in accrued interest payable and other liabilities	(3,465)	2,490
Net cash provided by (used in) operating activities	44,411	(39,473)
Cash flows from investing activities
Net change in loans	9,057	(393,154)
Principal payments on securities available-for-sale	22,552	16,146
Purchases of securities available-for-sale	(116,827)	(83,170)
Purchases of Bank Owned Life Insurance	(11,100)	0
Purchases of other investments	0	(2,000)
Additions to premises and equipment	(541)	(665)
Proceeds from:
Sale and call of securities available-for-sale	1,107	47,789
Sale of other real estate owned and repossessed assets	0	2,356
Net cash used in acquisition	0	(29,464)
Net cash used in investing activities	(95,752)	(442,162)
Cash flows from financing activities
Net change in deposits	103,680	543,187
Change in short-term borrowings	(523)	(65,664)
Issuances of FRB borrowings related to Paycheck Protection Program	0	34,098
Issuances of long-term borrowings	0	20,923
Repayment of long-term borrowings	(3,071)	0
Preferred stock offering, net of issuance costs	0	23,370
Pay down of subordinated debt	(15,000)	0
Change in secured borrowing	(32)	(52)
Share buyback - redeemed stock	(1,364)	(620)
Preferred stock dividends paid	(1,406)	0
Common stock dividends paid	(1,296)	(1,082)
Proceeds from exercised stock options	243	95
Payments related to tax-withholding for share based compensation awards	(137)	(64)
Net cash provided by (used in) financing activities	81,094	554,191
Net change in cash and cash equivalents	29,753	72,556
Beginning cash and cash equivalents	264,071	103,930
Ending cash and cash equivalents	293,824	176,486
Supplemental disclosure of cash flow information:
Interest paid	6,324	12,117
Taxes paid	6,242	6,909
Transfer from loans held for sale to loans held for investment and repurchases	4,656	2,284
Transfer from loans to other real estate owned	0	1,172
Increase in assets and liabilities in acquisitions:
Assets acquired—Ann Arbor State Bank	0	325,303
Liabilities assumed—Ann Arbor State Bank	$ 0	$ 283,526

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Operations: Level One Bancorp, Inc. (the “Company,” “Level One,” “we,” “our,” or “us”) is a financial holding company headquartered in Farmington Hills, Michigan. In addition to the Company headquarters, as of September 30, 2021, its wholly owned bank subsidiary, Level One Bank (the "Bank"), had 17 offices, including 11 banking centers (our full service branches) in Metro Detroit, one banking center in Grand Rapids, one banking center in Jackson, three banking centers in Ann Arbor and one mortgage loan production office in Ann Arbor. The Bank is a Michigan banking corporation with depository accounts insured by the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (the "FDIC"). The Bank provides a wide range of business and consumer financial services in southeastern Michigan and west Michigan. Its primary deposit products are checking, interest-bearing demand, money market and savings, and term certificate accounts, and its primary lending products are commercial real estate, commercial and industrial, residential real estate, and consumer loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. Other financial instruments, which potentially represent concentrations of credit risk, include federal funds sold. Hamilton Court Insurance Company ("Hamilton Court") was a wholly owned insurance subsidiary of the Company that provided property and casualty insurance coverage to the Company and the Bank and reinsurance to ten other third party insurance captives for which insurance may not have been available or economically feasible in the insurance marketplace. Hamilton Court was designed to insure the risks of the Company and the Bank by providing additional insurance coverage for deductibles, excess limits and uninsured exposures. Hamilton Court was incorporated in Nevada. Hamilton Court Insurance Company exited the pool resources relationship to which it was previously a member and was dissolved in the first quarter of 2021. Preferred Stock Public Offering: On August 10, 2020, the Company sold 1,000,000 depositary shares, each representing 1/100th interest in a share of 7.50% Non-Cumulative Perpetual Preferred Stock, Series B, with a liquidation preference of $2,500 per share of Preferred Stock (equivalent to $25 per depositary share). The aggregate offering price for the shares sold by the Company was $25.0 million, and after deducting $1.6 million of underwriting discounts and offering expenses paid to third parties, the Company received total net proceeds of $23.4 million. Merger with Ann Arbor Bancorp, Inc.: On January 2, 2020, the Company completed its acquisition of Ann Arbor Bancorp, Inc. (“AAB”) and its wholly owned subsidiary, Ann Arbor State Bank. The Company paid aggregate consideration of approximately $67.9 million in cash. Basis of Presentation and Principles of Consolidation: The accompanying unaudited consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and conform to practices within the banking industry and include all of the information and disclosures required by generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting. The accompanying unaudited consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair presentation of financial results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results for the full year or any other period. These interim unaudited financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2020, included in our Annual Report on Form 10-K, filed with the SEC on March 12, 2021. The accompanying consolidated financial statements include the accounts of the Company and its consolidated subsidiaries after elimination of significant intercompany transactions and accounts. Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided; therefore, future results could differ. These estimates and assumptions are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions, the effects of the Coronavirus Disease 2019 (“COVID-19”) pandemic, its effects on the economic environment, our customers and our operations, as well as any changes to federal, state and local government laws, regulations and orders in connection with the pandemic. The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), as supplemented by the Consolidated Appropriations Act, 2021, provided for among other things, a small business lending program to originate paycheck protection loans and temporary relief for financial institutions related to troubled debt restructurings. Actual results may differ from those estimates. Emerging Growth Company Status: The Company is an "emerging growth company," as defined in the Jumpstart Our Business Startups Act of 2012 (the JOBS Act) through December 31, 2023. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of an extended transition period when complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of this extended transition period, which means these financial statements, as well as financial statements we file in the future for as long as we remain an emerging growth company, will be subject to all new or revised accounting standards generally applicable to private companies. Impact of Recently Issued Accounting Standards: Leases In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," to improve transparency and comparability across entities regarding leasing arrangements. This ASU requires the recognition of a separate lease liability representing the required discounted lease payments over the lease term and a separate lease asset representing the right to use the underlying asset during the same lease term. Additionally, this ASU provides clarification regarding the identification of certain components of contracts that would represent a lease as well as requires additional disclosures to the notes of the financial statements. The guidance is effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, and is to be applied under an optional transition method. The Company is planning to adopt this new guidance within the time frame noted above. The Company is currently evaluating the impact of adopting this new guidance on its consolidated financial statements but does not expect that the adoption will have a material impact. Additionally, the Company does not expect to significantly change operating lease agreements prior to adoption. Allowance for Credit Losses In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," to replace the current incurred loss methodology for recognizing credit losses, which delays recognition until it is probable a loss has been incurred, with a methodology that reflects an estimate of all expected credit losses and considers additional reasonable and supportable forecasted information when determining credit loss estimates. This impacts the calculation of the allowance for credit losses for all financial assets measured under the amortized cost basis, including PCI loans at the time of and subsequent to acquisition. Additionally, credit losses related to available-for-sale debt securities would be recorded through the allowance for credit losses and not as a direct adjustment to the amortized cost of the securities. The guidance is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this new guidance on its consolidated financial statements, current systems and processes. At this time, the Company is reviewing potential methodologies for estimating expected credit losses using reasonable and supportable forecast information and has identified certain data and system requirements. Once adopted, we expect our allowance for loan losses to increase through a one-time adjustment to retained earnings; however, until our evaluation is complete, the estimated increase in allowance will be unknown. The Company is planning to adopt this new guidance within the time frame noted above. Reference Rate Reform In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" to provide guidance to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met and only applies to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In addition, the ASU

Securities

Securities	9 Months Ended
	Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Securities	SECURITIES The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at September 30, 2021 and December 31, 2020 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). (Dollars in thousands) Amortized Gross Gross Fair September 30, 2021 U.S. government sponsored entities & agencies $ 24,531 $ 41 $ (536) $ 24,036 State and political subdivision 139,755 7,358 (418) 146,695 Mortgage-backed securities: residential 20,026 167 (107) 20,086 Mortgage-backed securities: commercial 23,531 387 (378) 23,540 Collateralized mortgage obligations: residential 9,796 87 (12) 9,871 Collateralized mortgage obligations: commercial 52,918 674 (854) 52,738 U.S. Treasury 65,118 67 (287) 64,898 SBA 15,011 154 (57) 15,108 Asset backed securities 9,896 11 (49) 9,858 Corporate bonds 22,801 27 (130) 22,698 Total available-for-sale $ 383,383 $ 8,973 $ (2,828) $ 389,528 December 31, 2020 U.S. government sponsored entities & agencies $ 26,575 $ 103 $ (320) $ 26,358 State and political subdivision 124,053 8,751 (81) 132,723 Mortgage-backed securities: residential 25,729 352 — 26,081 Mortgage-backed securities: commercial 11,434 484 — 11,918 Collateralized mortgage obligations: residential 13,320 138 (12) 13,446 Collateralized mortgage obligations: commercial 57,398 1,206 (92) 58,512 SBA 17,639 61 (107) 17,593 Asset backed securities 10,229 — (157) 10,072 Corporate bonds 5,998 34 (3) 6,029 Total available-for-sale $ 292,375 $ 11,129 $ (772) $ 302,732 The proceeds from sales and calls of securities and the associated gains and losses for the periods below were as follows: (Dollars in thousands) For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 Proceeds $ — $ 5,351 $ 1,107 $ 47,789 Gross gains — 434 20 1,871 Gross losses — — — (9) The amortized cost and fair value of securities are shown in the table below by contractual maturity. Expected maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2021 (Dollars in thousands) Amortized Fair Within one year $ 7,839 $ 7,916 One to five years 59,824 60,459 Five to ten years 181,283 182,244 Beyond ten years 134,437 138,909 Total $ 383,383 $ 389,528 Securities pledged at September 30, 2021 and December 31, 2020 had a carrying amount of $90.6 million and $98.7 million, respectively, and were pledged to secure Federal Home Loan Bank ("FHLB") advances, a Federal Reserve Bank line of credit, repurchase agreements, deposits and mortgage derivatives. As of September 30, 2021, the Bank held 68 tax-exempt state and local municipal securities totaling $52.8 million backed by the Michigan School Bond Loan Fund. Other than the aforementioned investments and the U.S. government and its agencies, at September 30, 2021 and December 31, 2020, there were no holdings of securities of any one issuer in an amount greater than 10% of shareholders' equity. The following table summarizes securities with unrealized losses at September 30, 2021 and December 31, 2020 aggregated by security type and length of time in a continuous unrealized loss position: Less than 12 Months 12 Months or Longer Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2021 Available-for-sale U.S. government sponsored entities & agencies $ — $ — $ 19,464 $ (536) $ 19,464 $ (536) State and political subdivision 33,804 (418) — — 33,804 (418) Mortgage-backed securities: residential 14,096 (107) — — 14,096 (107) Mortgage-backed securities: commercial 16,241 (378) — — 16,241 (378) Collateralized mortgage obligations: residential 906 (2) 950 (10) 1,856 (12) Collateralized mortgage obligations: commercial 20,219 (484) 10,679 (370) 30,898 (854) U.S. Treasury 55,186 (287) — — 55,186 (287) SBA — — 6,282 (57) 6,282 (57) Asset backed securities 4,770 (12) 2,493 (37) 7,263 (49) Corporate bonds 12,920 (130) — — 12,920 (130) Total available-for-sale $ 158,142 $ (1,818) $ 39,868 $ (1,010) $ 198,010 $ (2,828) December 31, 2020 Available-for-sale U.S. government sponsored entities & agencies $ 19,680 $ (320) $ — $ — $ 19,680 $ (320) State and political subdivision 4,880 (81) — — 4,880 (81) Collateralized mortgage obligations: residential — — 1,109 (12) 1,109 (12) Collateralized mortgage obligations: commercial 26,477 (92) — — 26,477 (92) SBA — — 12,209 (107) 12,209 (107) Asset backed securities — — 10,072 (157) 10,072 (157) Corporate bonds 2,497 (3) — — 2,497 (3) Total available-for-sale $ 53,534 $ (496) $ 23,390 $ (276) $ 76,924 $ (772) As of September 30, 2021, the Company's investment portfolio consisted of 330 securities, 67 of which were in an unrealized loss position. The unrealized losses for these securities resulted primarily from changes in interest rates since

Loans

Loans	9 Months Ended
	Sep. 30, 2021
Receivables [Abstract]
Loans	LOANS The following table presents the recorded investment in loans at September 30, 2021 and December 31, 2020. The recorded investment in loans excludes accrued interest receivable. (Dollars in thousands) Originated Acquired Total September 30, 2021 Commercial real estate $ 660,255 $ 114,606 $ 774,861 Commercial and industrial 494,689 45,857 540,546 Residential real estate 381,515 22,002 403,517 Consumer 686 107 793 Total $ 1,537,145 $ 182,572 $ 1,719,717 December 31, 2020 Commercial real estate $ 587,631 $ 133,201 $ 720,832 Commercial and industrial 629,434 56,070 685,504 Residential real estate 280,645 34,831 315,476 Consumer 748 977 1,725 Total $ 1,498,458 $ 225,079 $ 1,723,537 At September 30, 2021 and December 31, 2020, the Company had residential loans held for sale, which were originated with the intent to sell, totaling $15.4 million and $43.5 million, respectively. During the three months ended September 30, 2021 and 2020, the Company sold residential real estate loans with proceeds totaling $101.3 million and $157.2 million, respectively, and $371.4 million and $377.2 million during the nine months ended September 30, 2021 and 2020, respectively. At September 30, 2021 and December 31, 2020, $147.6 million and $290.1 million, respectively, of PPP loans were included in the commercial and industrial loan balance. Nonperforming Assets Nonperforming assets consist of loans for which the accrual of interest has been discontinued and other real estate owned obtained through foreclosure and other repossessed assets. Loans outside of those accounted for under ASC 310-30 are classified as nonaccrual when, in the opinion of management, it is probable that the Company will be unable to collect all the contractual interest and principal payments as scheduled in the loan agreement. The accrual of interest is discontinued when a loan is placed in nonaccrual status and any payments received reduce the carrying value of the loan. A loan may be placed back on accrual status if all contractual payments have been received and collection of future principal and interest payments is no longer doubtful. Acquired loans that are not performing in accordance with contractual terms are not reported as nonperforming because these loans are recorded at their net realizable value based on the principal and interest the Company expects to collect on these loans. There were $216 thousand and $12 thousand in commitments to lend additional funds to borrowers whose loans were classified as nonaccrual as of September 30, 2021 and December 31, 2020, respectively. Information as to nonperforming assets was as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Nonaccrual loans: Commercial real estate $ 3,768 $ 7,320 Commercial and industrial 4,746 7,490 Residential real estate 3,610 3,991 Consumer 9 15 Total nonaccrual loans 12,133 18,816 Total nonperforming assets $ 12,133 $ 18,816 Loans 90 days or more past due and still accruing $ 162 $ 269 At September 30, 2021 and December 31, 2020, the loans that were 90 days or more past due and still accruing were PCI loans. Loan delinquency as of the dates presented below was as follows: (Dollars in thousands) Current 30 - 59 Days 60 - 89 Days 90+ Days Total September 30, 2021 Commercial real estate $ 773,426 $ 1,435 $ — $ — $ 774,861 Commercial and industrial 540,441 105 — — 540,546 Residential real estate 401,281 851 226 1,159 403,517 Consumer 783 9 1 — 793 Total $ 1,715,931 $ 2,400 $ 227 $ 1,159 $ 1,719,717 December 31, 2020 Commercial real estate $ 714,196 $ 4,863 $ 1,773 $ — $ 720,832 Commercial and industrial 681,106 893 3,505 — 685,504 Residential real estate 305,800 5,420 1,110 3,146 315,476 Consumer 1,723 — — 2 1,725 Total $ 1,702,825 $ 11,176 $ 6,388 $ 3,148 $ 1,723,537 Impaired Loans: Information as to impaired loans, excluding PCI loans, was as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Nonaccrual loans $ 12,133 $ 18,816 Performing troubled debt restructurings: Commercial and industrial 336 546 Residential real estate 426 432 Total performing troubled debt restructurings 762 978 Total impaired loans, excluding purchase credit impaired loans $ 12,895 $ 19,794 Troubled Debt Restructurings: The Company assesses loan modifications to determine whether a modification constitutes a troubled debt restructuring ("TDR"). This applies to all loan modifications except for modifications to loans accounted for in pools under ASC 310-30, which are not subject to TDR accounting/classification. For loans excluded from ASC 310-30 accounting, a modification is considered a TDR when a borrower is experiencing financial difficulties and the Company grants a concession to the borrower. For loans accounted for individually under ASC 310-30, a modification is considered a TDR when a borrower is experiencing financial difficulties and the effective yield after the modification is less than the effective yield at the time the loan was acquired or less than the effective yield of any re-estimation of cash flows subsequent to acquisition in association with consideration of qualitative factors included within ASC 310-40. All TDRs are considered impaired loans. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, are considered in the determination of an appropriate level of allowance for loan losses. The CARES Act was signed into law on March 27, 2020, which provides a variety of provisions, including, among other things, a small business lending program to originate paycheck protection loans, temporary relief for the community bank leverage ratio, and temporary relief for financial institutions related to troubled debt restructurings. On December 27, 2020, the Consolidated Appropriations Act, 2021 was signed into law and extends the relief related to troubled debt restructurings to the earlier of January 1, 2022 or 60 days after the national emergency termination date. As a result of the COVID-19 pandemic, the Company is currently working with borrowers to provide short-term payment modifications. Any short-term modifications made on a good-faith basis in response to the COVID-19 pandemic to borrowers who were current prior to any relief are not considered TDRs based on interagency guidance. This includes short-term modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. As of September 30, 2021, we had $1.1 million of loans that remained on a COVID-related deferral, and no loans that had payments deferred greater than six months. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program was implemented. The Company’s modification programs are designed to provide temporary relief for current borrowers affected by the COVID-19 pandemic. The Company has presumed that borrowers that are current on payments are not experiencing financial difficulties at the time of the modification for purposes of determining TDR status, and thus no further TDR analysis is required for each loan modification in the program. As of September 30, 2021 and December 31, 2020, the Company had a recorded investment in troubled debt restructurings of $4.3 million and $4.8 million, respectively. The Company allocated a specific reserve of $351 thousand for those loans at September 30, 2021 and a specific reserve of $317 thousand for those loans at December 31, 2020. The Company had not committed to lend additional amounts to borrowers whose loans have been modified. As of September 30, 2021, there were $3.5 million of nonperforming TDRs and $762 thousand of performing TDRs included in impaired loans. As of December 31, 2020, there were $3.8 million of nonperforming TDRs and $978 thousand of performing TDRs included in impaired loans. All TDRs are considered impaired loans in the calendar year of their restructuring. A loan that has been modified can return to performing status if it satisfies a six-month performance requirement; however, it will continue to be reported as a TDR and considered impaired. The following table presents the recorded investment of loans modified as TDRs during the three and nine months ended September 30, 2020 by type of concession granted. There were no loans modified as TDRs during the three months ended September 30, 2021. There were three loans modified as TDRs during the nine months ended September 30, 2021 which were subsequently paid off during the three months ended September 30, 2021. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession. Concession type Financial effects of (Dollars in thousands) Principal Interest Forbearance Total Total Net Provision Three Months Ended September 30, 2020 Commercial and industrial $ — $ — $ 148 1 $ 148 $ — $ — Total $ — $ — $ 148 1 $ 148 $ — $ — Nine Months Ended September 30, 2020 Commercial and industrial $ — $ — $ 148 1 $ 148 $ — $ — Residential real estate — 75 — 1 75 — — Total $ — $ 75 $ 148 2 $ 223 $ — $ — On an ongoing basis, the Company monitors the performance of TDRs to their modified terms. The following table presents the number of loans modified as TDRs during the twelve months ended September 30, 2021 for which there was a subsequent payment default during the nine months ended September 30, 2021 and the recorded investment as of September 30, 2021. There were no loans modified as TDRs within the previous twelve months that subsequently defaulted during the three months ended September 30, 2021 and the three or nine months ended September 30, 2020. A payment on a TDR is considered to be in default once it is greater than 30 days past due. For the nine months ended September 30, 2021 (Dollars in thousands) Total number of Total recorded Provision for loan losses following a Commercial real estate 2 $ 1,556 $ — Total 2 $ 1,556 $ — Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes commercial and industrial and commercial real estate loans and is performed on an annual basis. The Company uses the following definitions for risk ratings: Pass. Loans classified as pass are higher quality loans that do not fit any of the other categories described below. This category includes loans risk rated with the following ratings: cash/stock secured, excellent credit risk, superior credit risk, good credit risk, satisfactory credit risk, and marginal credit risk. Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company's credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Based on the most recent analysis performed, the risk category of loans by class of loans was as follows: (Dollars in thousands) Pass Special Substandard Doubtful Total September 30, 2021 Commercial real estate $ 748,486 $ 15,683 $ 10,204 $ 488 $ 774,861 Commercial and industrial 476,728 48,959 13,790 1,069 540,546 Total $ 1,225,214 $ 64,642 $ 23,994 $ 1,557 $ 1,315,407 December 31, 2020 Commercial real estate $ 685,690 $ 21,570 $ 13,045 $ 527 $ 720,832 Commercial and industrial 637,285 25,727 21,876 616 685,504 Total $ 1,322,975 $ 47,297 $ 34,921 $ 1,143 $ 1,406,336 For residential real estate loans and consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity. Residential real estate loans and consumer loans are considered nonperforming if they are 90 days or more past due. Consumer loan types are continuously monitored for changes in delinquency trends and other asset quality indicators. The following presents residential real estate and consumer loans by credit quality: (Dollars in thousands) Performing Nonperforming Total September 30, 2021 Residential real estate $ 399,907 $ 3,610 $ 403,517 Consumer 784 9 793 Total $ 400,691 $ 3,619 $ 404,310 December 31, 2020 Residential real estate $ 311,485 $ 3,991 $ 315,476 Consumer 1,710 15 1,725 Total $ 313,195 $ 4,006 $ 317,201 Purchased Credit Impaired Loans: As part of the Company's previous five acquisitions, the Company acquired purchase credit impaired ("PCI") loans for which there was evidence of credit quality deterioration since origination, and we determined that it was probable that the Company would be unable to collect all contractually required principal and interest payments. The total balance of all PCI loans from these acquisitions was as follows: (Dollars in thousand) Unpaid Principal Balance Recorded Investment September 30, 2021 Commercial real estate $ 3,656 $ 1,663 Commercial and industrial 4,545 — Residential real estate 255 2,698 Total PCI loans $ 8,456 $ 4,361 December 31, 2020 Commercial real estate $ 5,109 $ 1,773 Commercial and industrial 643 274 Residential real estate 4,017 2,949 Total PCI loans $ 9,769 $ 4,996 The following table reflects the activity in the accretable yield of PCI loans from past acquisitions, which includes total expected cash flows, including interest, in excess of the recorded investment. For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Accretable yield at beginning of period $ 6,242 $ 8,374 $ 7,097 $ 9,141 Additions due to acquisitions — — — 35 Accretion of income (368) (482) (1,160) (1,350) Adjustments to accretable yield — — (63) 66 Accretable yield at end of period $ 5,874 $ 7,892 $ 5,874 $ 7,892 "Additions due to acquisitions" represents the accretable yield added as a result of the AAB acquisition. "Accretion of income" represents the income earned on these loans for the year. In the normal course of business, the Company offers a variety of financial instruments with off-balance sheet risk to meet the financing needs of its customers. These financial instruments include outstanding commitments to extend credit, credit lines, commercial letters of credit and standby letters of credit. Commitments to extend credit are agreements to provide credit to a customer, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used and the total commitment amounts do not necessarily represent future cash flow requirements. Standby letters of credit and commercial letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, while commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party. These financial standby letters of credit irrevocably obligate the Company to pay a third-party beneficiary when a customer fails to repay an outstanding loan or debt instrument. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies used for loans are used to make such commitments, including obtaining collateral at exercise of the commitment. We maintain an allowance to cover probable losses inherent in our financial instruments with off-balance sheet risk. At September 30, 2021, the allowance for off-balance sheet risk was $318 thousand, compared to $490 thousand at December 31, 2020, and was included in "Other liabilities" on our consolidated balance sheets. A summary of the contractual amounts of the Company's exposure to off-balance sheet risk is as follows: September 30, 2021 December 31, 2020 (Dollars in thousands) Fixed Variable Fixed Variable Commitments to make loans $ 9,087 $ 6,600 $ 18,269 $ 17,058 Unused lines of credit 33,383 397,716 28,898 385,307 Unused standby letters of credit and commercial letters of credit 3,353 — 2,340 1,992 Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments of $9.1 million as of September 30, 2021, had interest rates ranging from 3.5% to 5.00% and maturities ranging from 1 year to 20 years.

Allowance for Loan Losses

Allowance for Loan Losses	9 Months Ended
	Sep. 30, 2021
Receivables [Abstract]
Allowance for Loan Losses	ALLOWANCE FOR LOAN LOSSES An allowance for loan losses is maintained to absorb probable incurred losses from the loan portfolio. The allowance for loan losses is based on management's continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of nonaccrual loans. The Company established an allowance for loan losses associated with PCI loans (accounted for under ASC 310-30) based on credit deterioration subsequent to the acquisition date. As of September 30, 2021, the Company had 5 PCI loan pools and 9 non-pooled PCI loans. The Company re-estimates cash flows expected to be collected for PCI loans on a semi-annual basis, with any decline in expected cash flows recorded as provision for loan losses on a discounted basis during the period. For any increases in cash flows expected to be collected, the Company adjusts the amount of accretable yield to be recognized on a prospective basis over the loan's remaining life. For loans not accounted for under ASC 310-30, the Company individually evaluates certain impaired loans on a quarterly basis and establishes specific allowances for such loans, if required. A loan is considered impaired when it is probable that interest or principal payments will not be made in accordance with the contractual terms of the loan agreement. Consistent with this definition, all loans for which the accrual of interest has been discontinued (nonaccrual loans) and all TDRs are considered impaired. The Company individually evaluates nonaccrual loans with book balances of $250 thousand or more, all loans whose terms have been modified in a TDR, and certain other loans. The threshold for individual evaluation is revised on an infrequent basis, generally when economic circumstances significantly change. Specific allowances for impaired loans are estimated using one of several methods, including the estimated fair value of underlying collateral, observable market value of similar debt or discounted expected future cash flows. All other impaired loans are individually evaluated by identifying its risk characteristics and applying the standard reserve factor for the corresponding loan pool. Loans which do not meet the criteria to be individually evaluated are evaluated in pools of loans with similar risk characteristics. Business loans are assigned to pools based on the Company's internal risk rating system. Internal risk ratings are assigned to each business loan at the time of approval and are subjected to subsequent periodic reviews by the Company's senior management, generally at least annually or more frequently upon the occurrence of a circumstance that affects the credit risk of the loan. For business loans not individually evaluated, losses inherent to the pool are estimated by applying standard reserve factors to outstanding principal balances. The allowance for loans not individually evaluated is determined by applying estimated loss rates to various pools of loans within the portfolios with similar risk characteristics. Estimated loss rates for all pools are updated quarterly, incorporating quantitative and qualitative factors such as recent charge-off experience, current economic conditions and trends, changes in collateral values of properties securing loans (using index-based estimates), and trends with respect to past due and nonaccrual amounts. Loans acquired in business combinations are initially recorded at fair value, which includes an estimate of credit losses expected to be realized over the remaining lives of the loans, and therefore no corresponding allowance for loan losses is recorded for these loans at acquisition. Methods utilized to estimate any subsequently required allowance for loan losses for acquired loans not deemed credit-impaired at acquisition are similar to originated loans; however, the estimate of loss is based on the unpaid principal balance less any remaining purchase discount. Loans individually evaluated for impairment are presented below. (Dollars in thousands) Recorded investment with Recorded investment Total Contractual Related September 30, 2021 Individually evaluated impaired loans: Commercial real estate $ 3,768 $ — $ 3,768 $ 4,112 $ — Commercial and industrial 4,055 842 4,897 5,512 343 Residential real estate 1,801 135 1,936 2,283 27 Total $ 9,624 $ 977 $ 10,601 $ 11,907 $ 370 December 31, 2020 Individually evaluated impaired loans: Commercial real estate $ 7,320 $ — $ 7,320 $ 7,720 $ — Commercial and industrial 7,964 630 8,594 9,208 307 Residential real estate 2,153 192 2,345 2,447 25 Total $ 17,437 $ 822 $ 18,259 $ 19,375 $ 332 (Dollars in thousands) Average Interest Cash Basis For the three months ended September 30, 2021 Individually evaluated impaired loans: Commercial real estate $ 4,259 $ — $ 30 Commercial and industrial 5,356 8 118 Residential real estate 2,125 7 — Total $ 11,740 $ 15 $ 148 For the nine months ended September 30, 2021 Individually evaluated impaired loans: Commercial real estate $ 5,298 $ — $ 332 Commercial and industrial 6,449 23 233 Residential real estate 2,143 18 10 Total $ 13,890 $ 41 $ 575 For the three months ended September 30, 2020 Individually evaluated impaired loans: Commercial real estate $ 7,139 $ — $ — Commercial and industrial 8,960 12 — Residential real estate 3,265 7 — Total $ 19,364 $ 19 $ — For the nine months ended September 30, 2020 Individually evaluated impaired loans: Commercial real estate $ 7,433 $ — $ — Commercial and industrial 13,086 34 84 Residential real estate 3,266 26 — Total $ 23,785 $ 60 $ 84 Activity in the allowance for loan losses is presented below: (Dollars in thousands) Commercial Commercial Residential Consumer Total For the three months ended September 30, 2021 Allowance for loan losses: Beginning balance $ 10,931 $ 8,390 $ 3,819 $ 4 $ 23,144 Provision expense (benefit) for loan losses (1,141) (278) 232 (2) (1,189) Gross chargeoffs — (6) (242) (7) (255) Recoveries — 8 14 9 31 Net (chargeoffs) recoveries — 2 (228) 2 (224) Ending allowance for loan losses $ 9,790 $ 8,114 $ 3,823 $ 4 $ 21,731 For the nine months ended September 30, 2021 Allowance for loan losses: Beginning balance $ 9,975 $ 8,786 $ 3,527 $ 9 $ 22,297 Provision expense (benefit) for loan losses (185) (692) 492 1 (384) Gross chargeoffs — (24) (242) (21) (287) Recoveries — 44 46 15 105 Net (chargeoffs) recoveries — 20 (196) (6) (182) Ending allowance for loan losses $ 9,790 $ 8,114 $ 3,823 $ 4 $ 21,731 For the three months ended September 30, 2020 Allowance for loan losses: Beginning balance $ 7,987 $ 6,496 $ 2,565 $ 15 $ 17,063 Provision expense (benefit) for loan losses 1,820 1,679 781 (10) 4,270 Gross chargeoffs — (10) (110) (4) (124) Recoveries 12 15 10 8 45 Net (chargeoffs) recoveries 12 5 (100) 4 (79) Ending allowance for loan losses $ 9,819 $ 8,180 $ 3,246 $ 9 $ 21,254 For the nine months ended September 30, 2020 Allowance for loan losses: Beginning Balance $ 5,773 $ 5,515 $ 1,384 $ 2 $ 12,674 Provision expense for loan losses 4,034 4,347 1,921 32 10,334 Gross chargeoffs — (1,729) (110) (47) (1,886) Recoveries 12 47 51 22 132 Net (chargeoffs) recoveries 12 (1,682) (59) (25) (1,754) Ending Allowance for loan losses $ 9,819 $ 8,180 $ 3,246 $ 9 $ 21,254 Allocation of the allowance for loan losses is presented below: (Dollars in thousands) Commercial Commercial Residential Consumer Total September 30, 2021 Allowance for loan losses: Individually evaluated for impairment $ — $ 343 $ 27 $ — $ 370 Collectively evaluated for impairment 9,353 7,771 3,563 4 20,691 Acquired with deteriorated credit quality 437 — 233 — 670 Ending allowance for loan losses $ 9,790 $ 8,114 $ 3,823 $ 4 $ 21,731 Balance of loans: Individually evaluated for impairment $ 3,768 $ 4,897 $ 1,936 $ — $ 10,601 Collectively evaluated for impairment 769,430 535,649 398,883 793 1,704,755 Acquired with deteriorated credit quality 1,663 — 2,698 — 4,361 Total loans $ 774,861 $ 540,546 $ 403,517 $ 793 $ 1,719,717 December 31, 2020 Allowance for loan losses: Individually evaluated for impairment $ — $ 307 $ 25 $ — $ 332 Collectively evaluated for impairment 9,550 8,465 3,273 9 21,297 Acquired with deteriorated credit quality 425 14 229 — 668 Ending allowance for loan losses $ 9,975 $ 8,786 $ 3,527 $ 9 $ 22,297 Balance of loans: Individually evaluated for impairment $ 7,320 $ 8,594 $ 2,345 $ — $ 18,259 Collectively evaluated for impairment 711,739 676,636 310,182 1,725 1,700,282 Acquired with deteriorated credit quality 1,773 274 2,949 — 4,996 Total loans $ 720,832 $ 685,504 $ 315,476 $ 1,725 $ 1,723,537

Premises and Equipment

Premises and Equipment	9 Months Ended
	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
Premises and Equipment	PREMISES AND EQUIPMENT Premises and equipment were as follows at September 30, 2021 and December 31, 2020: (Dollars in thousands) September 30, 2021 December 31, 2020 Land $ 3,572 $ 3,514 Buildings 10,710 10,656 Leasehold improvements 3,007 3,017 Furniture, fixtures and equipment 8,147 7,786 Total premises and equipment $ 25,436 $ 24,973 Less: Accumulated depreciation 10,266 9,139 Net premises and equipment $ 15,170 $ 15,834 Depreciation expense was $406 thousand and $426 thousand for the three months ended September 30, 2021 and 2020, respectively, and $1.2 million and $1.3 million for the nine months ended September 30, 2021 and 2020, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	GOODWILL AND INTANGIBLE ASSETS Goodwill: The Company has acquired three banks, Lotus Bank in March 2015, Bank of Michigan in March 2016, and Ann Arbor State Bank in January 2020, which resulted in the recognition of goodwill of $4.6 million, $4.8 million, and $26.2 million, respectively. Total goodwill was $35.6 million at September 30, 2021 and December 31, 2020. Goodwill is not amortized but is evaluated annually for impairment and on an interim basis if events or changes in circumstances indicate that goodwill might be impaired. The goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount, and an impairment charge would be recognized for any amount by which the carrying amount exceeds the reporting unit's fair value. As a result of the unprecedented decline in economic conditions triggered by the COVID-19 pandemic, the market valuations, including our stock price, saw a significant decline in March 2020, which then continued into the second quarter of 2020. These events indicated that goodwill may be impaired and resulted in management performing a qualitative goodwill impairment assessment in the second quarter of 2020. As a result of the analysis, we concluded that it was more-likely-than-not that the fair value of the reporting unit could be greater than its carrying amount. Since the price of our stock did not fully recover during the third quarter of 2020, the Company engaged a third-party valuation firm to perform a quantitative analysis of goodwill as of August 31, 2020 ("the valuation date"). In deriving the fair value of the reporting unit (the Bank), the third-party firm assessed general economic conditions and outlook; industry and market considerations and outlook; the impact of recent events on financial performance; the market price of our common stock and other relevant events. In addition, the valuation relied on financial projections through 2023 and growth rates prepared by management. Based on the valuation prepared, it was determined that the Company's estimated fair value of the reporting unit at August 31, 2020 was greater than its book value, and impairment of goodwill was not required. The Company completed its annual goodwill impairment review as of October 1, 2020, noting strong financial indicators for the Bank, solid credit quality ratios, as well as the strong capital position of the Bank. In addition, third quarter 2020 revenue reflected significant and continuing growth in our residential mortgage banking business, as well as net Small Business Administration ("SBA") fees related to Paycheck Protection Program ("PPP") loans funded during second and third quarters of 2020. Management concurred with the conclusion derived from the quantitative goodwill analysis as of August 31, 2020 and determined that there were no material changes between the valuation date and October 1, 2020. Management also determined that no triggering events have occurred that indicated impairment from the most recent valuation date through September 30, 2021, the stock was trading above book value as of September 30, 2021, and it is more likely than not that there was no goodwill impairment as of September 30, 2021. Intangible Assets : The Company recorded core deposit intangibles ("CDIs") associated with each of its acquisitions. CDIs are amortized on an accelerated basis over their estimated useful lives. The table below presents the Company's net carrying amount of CDIs: (Dollars in thousands) September 30, 2021 December 31, 2020 Gross carrying amount $ 5,708 $ 5,708 Accumulated amortization (3,013) (2,512) Net Intangible $ 2,695 $ 3,196

Mortgage Servicing Rights, Net

Mortgage Servicing Rights, Net	9 Months Ended
	Sep. 30, 2021
Mortgage Banking [Abstract]
Mortgage Servicing Rights, Net	MORTGAGE SERVICING RIGHTS, NET The Company has recorded a mortgage servicing rights asset for residential real estate mortgage loans that are sold to the secondary market for which servicing has been retained. Residential real estate mortgage loans serviced for others are not included in the consolidated balance sheets. Mortgage servicing rights are carried at the lower of the initial capitalized amount, net of accumulated amortization or estimated fair value. Mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income. The unpaid principal balances of these loans at September 30, 2021 and December 31, 2020 were as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Residential real estate mortgage loan portfolios serviced for: FNMA $ 535,348 $ 320,467 Custodial escrow balances maintained with these serviced loans were $3.3 million and $1.9 million at September 30, 2021 and December 31, 2020, respectively. Activity for mortgage servicing rights was as follows for the three and nine months ended September 30, 2021 and 2020: For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Mortgage servicing rights: Balance, beginning of period $ 4,599 $ 1,213 $ 3,361 $ 76 Originated servicing 787 1,073 3,199 2,250 Amortization (335) (93) (1,509) (133) Balance, end of period $ 5,051 $ 2,193 $ 5,051 $ 2,193 Servicing fee income, net of amortization of servicing rights and changes in the valuation allowance was $(32) thousand and $(93) thousand for the three months ended September 30, 2021 and 2020, respectively, and $(289) thousand and $(129) thousand for the nine months ended September 30, 2021 and 2020, respectively. The Company recorded a valuation allowance of $17 thousand related to mortgage servicing rights during the first quarter of 2020, which was then reversed during the second quarter of 2020 as a result of the fair value at June 30, 2020 being higher than book value. The fair value remained higher than book value at September 30, 2020. There was no valuation allowance related to mortgage servicing rights during the three or nine months ended September 30, 2021.

Borrowings and Subordinated Deb

Borrowings and Subordinated Debt	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Borrowings and Subordinated Debt	BORROWINGS AND SUBORDINATED DEBT The following table presents the components of our short-term borrowings and long-term debt. September 30, 2021 December 31, 2020 (Dollars in thousands) Amount Weighted (1) Amount Weighted (1) Short-term borrowings: Securities sold under agreements to repurchase $ 2,681 0.25 % $ 3,204 0.30 % Total short-term borrowings 2,681 0.25 3,204 0.30 Long-term debt: Secured borrowing due in 2022 1,272 1.00 1,304 1.00 FHLB advances due in 2022 to 2029 (2) 178,105 1.06 181,176 1.09 Subordinated notes due in 2025 and 2029 (3) 29,668 4.75 44,592 5.29 Total long-term debt 209,045 1.58 227,072 1.91 Total short-term and long-term borrowings $ 211,726 1.56 % $ 230,276 1.89 % (1) Weighted average rate presented is the contractual rate which excludes premiums and discounts related to purchase accounting. (2) At September 30, 2021, the long-term FHLB advances consisted of 0.42% - 2.93% fixed rate notes and can be called through 2024 without penalty by the issuer. The September 30, 2021 balance includes FHLB advances of $178.0 million and purchase accounting premiums of $105 thousand. The December 31, 2020 balance includes FHLB advances of $181.0 million and purchase accounting premiums of $176 thousand. (3) The September 30, 2021 balance includes subordinated notes of $30.0 million and debt issuance costs of $332 thousand. The December 31, 2020 balance includes subordinated notes of $45.0 million and debt issuance costs of $408 thousand. The following table presents long-term borrowings by contractual maturity date: (Dollars in thousands) As of September 30, 2021 2021 $ 3,008 2022 11,272 2023 3,047 2024 30,000 2025 2,050 Thereafter 159,668 Total long-term borrowings $ 209,045 The Bank is a member of the FHLB of Indianapolis, which provides short- and long-term funding collateralized by mortgage-related assets to its members. FHLB short-term borrowings bear interest at variable rates based on LIBOR. The $178.0 million of long-term FHLB advances as of September 30, 2021 were secured by a blanket lien on $582.8 million of real estate-related loans. Based on this collateral and the Company's holdings of FHLB stock, the Company was eligible to borrow up to an additional $219.4 million from the FHLB at September 30, 2021. In addition, the Bank can borrow up to $157.5 million through the unsecured lines of credit it has established with other correspondent banks, as well as $5.1 million through a secured line with the Federal Reserve Bank. The Bank had no outstanding federal funds purchased as of September 30, 2021 and December 31, 2020. At September 30, 2021, the Company had $2.7 million of securities sold under agreements to repurchase with customers, which mature overnight. These borrowings were secured by residential collateralized mortgage obligation securities with a fair value of $3.8 million at September 30, 2021. The Company had a secured borrowing of $1.3 million as of September 30, 2021 relating to certain loan participations sold by the Company that did not qualify for sales treatment. The secured borrowing bears a fixed rate of 1.00% and matures on September 15, 2022. At September 30, 2021, the Company had $30.0 million outstanding subordinated notes and $332 thousand of debt issuance costs. The debt issuance costs are netted against the balance of the subordinated notes and recognized as expense over the expected term of the notes. The $15.0 million of subordinated notes issued on December 21, 2015 had a fixed interest rate of 6.375% per annum, payable semiannually through December 15, 2020. As of December 15, 2020, the notes had a floating interest rate of three-month LIBOR plus 477 basis points payable quarterly through maturity. The notes were scheduled to mature on December 15, 2025, and the Company had the option to redeem or prepay any or all of the subordinated notes without premium or penalty any time after December 15, 2020 or upon an occurrence of a Tier 2 capital event or tax event. These subordinated notes were redeemed in June 2021. The $30.0 million of subordinated notes issued on December 18, 2019 bear a fixed interest rate of 4.75% per annum, payable semiannually through December 18, 2024. The notes will bear a floating interest rate of three-month secured overnight financing rate (SOFR) plus 311 basis points payable quarterly after December 18, 2024 through maturity. The notes mature on December 18, 2029, and the Company has the option to redeem any or all of the subordinated notes without premium or penalty any time after December 18, 2024 or upon the occurrence of a Tier 2 capital event or tax event. The Company has a short term line of credit of $30.0 million with Comerica Bank with a fixed interest rate of 4.05% per annum and a commitment fee of 0.20% on the average daily balance of the unused portion of the line of credit. As of September 30, 2021, the Company had no balance on the Comerica Bank line of credit. The Company participated in the PPP and also had the ability to borrow from the Federal Reserve's special purpose Paycheck Protection Program Liquidity Facility ("PPPLF") for additional funding. At September 30, 2021, the Company had no borrowings from the PPPLF.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES The Company and its subsidiaries are subject to U.S. federal income tax. In the ordinary course of business, we are routinely subject to audit by Internal Revenue Service. Currently, the Company is subject to examination by taxing authorities for the 2017 tax return year and forward. A reconciliation of expected income tax expense using the federal statutory rate of 21% for the three and nine months ended September 30, 2021 and 2020 and actual income tax expense is as follows: For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Income tax expense based on federal corporate tax rate $ 2,469 $ 1,328 $ 6,637 $ 2,970 Changes resulting from: Tax-exempt income (166) (154) (471) (469) Net operating loss carryback due to CARES Act — — — (290) Disqualified dispositions from stock options — — (4) (175) Other, net (12) (57) 36 73 Income tax expense $ 2,291 $ 1,117 $ 6,198 $ 2,109

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Stock Based Compensation	STOCK BASED COMPENSATION On March 15, 2018, the Company’s Board of Directors approved the 2018 Equity Incentive Plan ("2018 Plan"). The 2018 Plan became effective upon shareholder approval at the annual shareholders meeting held on April 17, 2018. Under the 2018 Plan, the Company can grant incentive and non-qualified stock options, stock awards, stock appreciation rights, and other incentive awards to directors and employees of, and certain service providers to, the Company and its subsidiaries. Once the 2018 Plan became effective, no further awards could be granted from the 2007 Stock Option Plan ("Stock Option Plan") or the 2014 Equity Incentive Plan ("2014 Plan"). However, any outstanding equity awards granted under the Stock Option Plan or the 2014 Plan will remain subject to the terms of such plans until the time such awards are no longer outstanding. The Company reserved 250,000 shares of common stock for issuance under the 2018 Plan. During the nine months ended September 30, 2021 and 2020, the Company issued 55,320 and 38,170 restricted stock awards, respectively, under the 2018 Plan. There were 120,327 shares available for issuance as of September 30, 2021. Stock Options As of September 30, 2021, all of the Company's outstanding options were granted under the Stock Option Plan. The term of these options is ten years, and they vest one-third each year, over a three year period. The Company will use authorized but unissued shares to satisfy share option exercises. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. Expected volatilities are based on historical volatilities of the Company's common stock. The Company assumes all awards will vest. The expected term of options granted represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. There were no stock options granted during the nine months ended September 30, 2021 or September 30, 2020. The summary of our stock option activity for the nine months ended September 30, 2021 is as follows: Shares Weighted Average Weighted Average Remaining Contractual Options outstanding, beginning of period 345,218 $ 16.83 4.1 Exercised (23,800) 10.19 Forfeited (1,500) 10.00 Options outstanding, end of period 319,918 17.36 3.6 Options exercisable 319,918 $ 17.36 3.6 The aggregate intrinsic value was $3.9 million for both options outstanding and exercisable as of September 30, 2021. As of September 30, 2021, there was no unrecognized compensation cost related to stock options granted under the Stock Option Plan. Share-based compensation expense charged against income was $11 thousand for the three months ended September 30, 2020, and $6 thousand and $33 thousand for the nine months ended September 30, 2021 and 2020, respectively. There was no share-based compensation expense charged against income for the three months ending September 30, 2021. Restricted Stock Awards A summary of changes in the Company's nonvested shares for the nine months ended September 30, 2021 is as follows: Nonvested Shares Shares Weighted Average Nonvested at January 1, 2021 93,270 $ 24.75 Granted 55,320 22.68 Vested (22,220) 25.54 Forfeited (8,000) 25.22 Nonvested at September 30, 2021 118,370 $ 23.60 As of September 30, 2021, there was $1.5 million of total unrecognized compensation cost related to nonvested shares granted under the 2018 Plan. The cost is expected to be recognized over a weighted average period of 2.0 years. The total fair value of shares vested during the nine months ended September 30, 2021 was $568 thousand.

Off- Balance Sheet Activities

Off- Balance Sheet Activities	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Off- Balance Sheet Activities	LOANS The following table presents the recorded investment in loans at September 30, 2021 and December 31, 2020. The recorded investment in loans excludes accrued interest receivable. (Dollars in thousands) Originated Acquired Total September 30, 2021 Commercial real estate $ 660,255 $ 114,606 $ 774,861 Commercial and industrial 494,689 45,857 540,546 Residential real estate 381,515 22,002 403,517 Consumer 686 107 793 Total $ 1,537,145 $ 182,572 $ 1,719,717 December 31, 2020 Commercial real estate $ 587,631 $ 133,201 $ 720,832 Commercial and industrial 629,434 56,070 685,504 Residential real estate 280,645 34,831 315,476 Consumer 748 977 1,725 Total $ 1,498,458 $ 225,079 $ 1,723,537 At September 30, 2021 and December 31, 2020, the Company had residential loans held for sale, which were originated with the intent to sell, totaling $15.4 million and $43.5 million, respectively. During the three months ended September 30, 2021 and 2020, the Company sold residential real estate loans with proceeds totaling $101.3 million and $157.2 million, respectively, and $371.4 million and $377.2 million during the nine months ended September 30, 2021 and 2020, respectively. At September 30, 2021 and December 31, 2020, $147.6 million and $290.1 million, respectively, of PPP loans were included in the commercial and industrial loan balance. Nonperforming Assets Nonperforming assets consist of loans for which the accrual of interest has been discontinued and other real estate owned obtained through foreclosure and other repossessed assets. Loans outside of those accounted for under ASC 310-30 are classified as nonaccrual when, in the opinion of management, it is probable that the Company will be unable to collect all the contractual interest and principal payments as scheduled in the loan agreement. The accrual of interest is discontinued when a loan is placed in nonaccrual status and any payments received reduce the carrying value of the loan. A loan may be placed back on accrual status if all contractual payments have been received and collection of future principal and interest payments is no longer doubtful. Acquired loans that are not performing in accordance with contractual terms are not reported as nonperforming because these loans are recorded at their net realizable value based on the principal and interest the Company expects to collect on these loans. There were $216 thousand and $12 thousand in commitments to lend additional funds to borrowers whose loans were classified as nonaccrual as of September 30, 2021 and December 31, 2020, respectively. Information as to nonperforming assets was as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Nonaccrual loans: Commercial real estate $ 3,768 $ 7,320 Commercial and industrial 4,746 7,490 Residential real estate 3,610 3,991 Consumer 9 15 Total nonaccrual loans 12,133 18,816 Total nonperforming assets $ 12,133 $ 18,816 Loans 90 days or more past due and still accruing $ 162 $ 269 At September 30, 2021 and December 31, 2020, the loans that were 90 days or more past due and still accruing were PCI loans. Loan delinquency as of the dates presented below was as follows: (Dollars in thousands) Current 30 - 59 Days 60 - 89 Days 90+ Days Total September 30, 2021 Commercial real estate $ 773,426 $ 1,435 $ — $ — $ 774,861 Commercial and industrial 540,441 105 — — 540,546 Residential real estate 401,281 851 226 1,159 403,517 Consumer 783 9 1 — 793 Total $ 1,715,931 $ 2,400 $ 227 $ 1,159 $ 1,719,717 December 31, 2020 Commercial real estate $ 714,196 $ 4,863 $ 1,773 $ — $ 720,832 Commercial and industrial 681,106 893 3,505 — 685,504 Residential real estate 305,800 5,420 1,110 3,146 315,476 Consumer 1,723 — — 2 1,725 Total $ 1,702,825 $ 11,176 $ 6,388 $ 3,148 $ 1,723,537 Impaired Loans: Information as to impaired loans, excluding PCI loans, was as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Nonaccrual loans $ 12,133 $ 18,816 Performing troubled debt restructurings: Commercial and industrial 336 546 Residential real estate 426 432 Total performing troubled debt restructurings 762 978 Total impaired loans, excluding purchase credit impaired loans $ 12,895 $ 19,794 Troubled Debt Restructurings: The Company assesses loan modifications to determine whether a modification constitutes a troubled debt restructuring ("TDR"). This applies to all loan modifications except for modifications to loans accounted for in pools under ASC 310-30, which are not subject to TDR accounting/classification. For loans excluded from ASC 310-30 accounting, a modification is considered a TDR when a borrower is experiencing financial difficulties and the Company grants a concession to the borrower. For loans accounted for individually under ASC 310-30, a modification is considered a TDR when a borrower is experiencing financial difficulties and the effective yield after the modification is less than the effective yield at the time the loan was acquired or less than the effective yield of any re-estimation of cash flows subsequent to acquisition in association with consideration of qualitative factors included within ASC 310-40. All TDRs are considered impaired loans. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, are considered in the determination of an appropriate level of allowance for loan losses. The CARES Act was signed into law on March 27, 2020, which provides a variety of provisions, including, among other things, a small business lending program to originate paycheck protection loans, temporary relief for the community bank leverage ratio, and temporary relief for financial institutions related to troubled debt restructurings. On December 27, 2020, the Consolidated Appropriations Act, 2021 was signed into law and extends the relief related to troubled debt restructurings to the earlier of January 1, 2022 or 60 days after the national emergency termination date. As a result of the COVID-19 pandemic, the Company is currently working with borrowers to provide short-term payment modifications. Any short-term modifications made on a good-faith basis in response to the COVID-19 pandemic to borrowers who were current prior to any relief are not considered TDRs based on interagency guidance. This includes short-term modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. As of September 30, 2021, we had $1.1 million of loans that remained on a COVID-related deferral, and no loans that had payments deferred greater than six months. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program was implemented. The Company’s modification programs are designed to provide temporary relief for current borrowers affected by the COVID-19 pandemic. The Company has presumed that borrowers that are current on payments are not experiencing financial difficulties at the time of the modification for purposes of determining TDR status, and thus no further TDR analysis is required for each loan modification in the program. As of September 30, 2021 and December 31, 2020, the Company had a recorded investment in troubled debt restructurings of $4.3 million and $4.8 million, respectively. The Company allocated a specific reserve of $351 thousand for those loans at September 30, 2021 and a specific reserve of $317 thousand for those loans at December 31, 2020. The Company had not committed to lend additional amounts to borrowers whose loans have been modified. As of September 30, 2021, there were $3.5 million of nonperforming TDRs and $762 thousand of performing TDRs included in impaired loans. As of December 31, 2020, there were $3.8 million of nonperforming TDRs and $978 thousand of performing TDRs included in impaired loans. All TDRs are considered impaired loans in the calendar year of their restructuring. A loan that has been modified can return to performing status if it satisfies a six-month performance requirement; however, it will continue to be reported as a TDR and considered impaired. The following table presents the recorded investment of loans modified as TDRs during the three and nine months ended September 30, 2020 by type of concession granted. There were no loans modified as TDRs during the three months ended September 30, 2021. There were three loans modified as TDRs during the nine months ended September 30, 2021 which were subsequently paid off during the three months ended September 30, 2021. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession. Concession type Financial effects of (Dollars in thousands) Principal Interest Forbearance Total Total Net Provision Three Months Ended September 30, 2020 Commercial and industrial $ — $ — $ 148 1 $ 148 $ — $ — Total $ — $ — $ 148 1 $ 148 $ — $ — Nine Months Ended September 30, 2020 Commercial and industrial $ — $ — $ 148 1 $ 148 $ — $ — Residential real estate — 75 — 1 75 — — Total $ — $ 75 $ 148 2 $ 223 $ — $ — On an ongoing basis, the Company monitors the performance of TDRs to their modified terms. The following table presents the number of loans modified as TDRs during the twelve months ended September 30, 2021 for which there was a subsequent payment default during the nine months ended September 30, 2021 and the recorded investment as of September 30, 2021. There were no loans modified as TDRs within the previous twelve months that subsequently defaulted during the three months ended September 30, 2021 and the three or nine months ended September 30, 2020. A payment on a TDR is considered to be in default once it is greater than 30 days past due. For the nine months ended September 30, 2021 (Dollars in thousands) Total number of Total recorded Provision for loan losses following a Commercial real estate 2 $ 1,556 $ — Total 2 $ 1,556 $ — Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes commercial and industrial and commercial real estate loans and is performed on an annual basis. The Company uses the following definitions for risk ratings: Pass. Loans classified as pass are higher quality loans that do not fit any of the other categories described below. This category includes loans risk rated with the following ratings: cash/stock secured, excellent credit risk, superior credit risk, good credit risk, satisfactory credit risk, and marginal credit risk. Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company's credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Based on the most recent analysis performed, the risk category of loans by class of loans was as follows: (Dollars in thousands) Pass Special Substandard Doubtful Total September 30, 2021 Commercial real estate $ 748,486 $ 15,683 $ 10,204 $ 488 $ 774,861 Commercial and industrial 476,728 48,959 13,790 1,069 540,546 Total $ 1,225,214 $ 64,642 $ 23,994 $ 1,557 $ 1,315,407 December 31, 2020 Commercial real estate $ 685,690 $ 21,570 $ 13,045 $ 527 $ 720,832 Commercial and industrial 637,285 25,727 21,876 616 685,504 Total $ 1,322,975 $ 47,297 $ 34,921 $ 1,143 $ 1,406,336 For residential real estate loans and consumer loans, the Company evaluates credit quality based on the aging status of the loan and by payment activity. Residential real estate loans and consumer loans are considered nonperforming if they are 90 days or more past due. Consumer loan types are continuously monitored for changes in delinquency trends and other asset quality indicators. The following presents residential real estate and consumer loans by credit quality: (Dollars in thousands) Performing Nonperforming Total September 30, 2021 Residential real estate $ 399,907 $ 3,610 $ 403,517 Consumer 784 9 793 Total $ 400,691 $ 3,619 $ 404,310 December 31, 2020 Residential real estate $ 311,485 $ 3,991 $ 315,476 Consumer 1,710 15 1,725 Total $ 313,195 $ 4,006 $ 317,201 Purchased Credit Impaired Loans: As part of the Company's previous five acquisitions, the Company acquired purchase credit impaired ("PCI") loans for which there was evidence of credit quality deterioration since origination, and we determined that it was probable that the Company would be unable to collect all contractually required principal and interest payments. The total balance of all PCI loans from these acquisitions was as follows: (Dollars in thousand) Unpaid Principal Balance Recorded Investment September 30, 2021 Commercial real estate $ 3,656 $ 1,663 Commercial and industrial 4,545 — Residential real estate 255 2,698 Total PCI loans $ 8,456 $ 4,361 December 31, 2020 Commercial real estate $ 5,109 $ 1,773 Commercial and industrial 643 274 Residential real estate 4,017 2,949 Total PCI loans $ 9,769 $ 4,996 The following table reflects the activity in the accretable yield of PCI loans from past acquisitions, which includes total expected cash flows, including interest, in excess of the recorded investment. For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Accretable yield at beginning of period $ 6,242 $ 8,374 $ 7,097 $ 9,141 Additions due to acquisitions — — — 35 Accretion of income (368) (482) (1,160) (1,350) Adjustments to accretable yield — — (63) 66 Accretable yield at end of period $ 5,874 $ 7,892 $ 5,874 $ 7,892 "Additions due to acquisitions" represents the accretable yield added as a result of the AAB acquisition. "Accretion of income" represents the income earned on these loans for the year. In the normal course of business, the Company offers a variety of financial instruments with off-balance sheet risk to meet the financing needs of its customers. These financial instruments include outstanding commitments to extend credit, credit lines, commercial letters of credit and standby letters of credit. Commitments to extend credit are agreements to provide credit to a customer, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used and the total commitment amounts do not necessarily represent future cash flow requirements. Standby letters of credit and commercial letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, while commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party. These financial standby letters of credit irrevocably obligate the Company to pay a third-party beneficiary when a customer fails to repay an outstanding loan or debt instrument. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies used for loans are used to make such commitments, including obtaining collateral at exercise of the commitment. We maintain an allowance to cover probable losses inherent in our financial instruments with off-balance sheet risk. At September 30, 2021, the allowance for off-balance sheet risk was $318 thousand, compared to $490 thousand at December 31, 2020, and was included in "Other liabilities" on our consolidated balance sheets. A summary of the contractual amounts of the Company's exposure to off-balance sheet risk is as follows: September 30, 2021 December 31, 2020 (Dollars in thousands) Fixed Variable Fixed Variable Commitments to make loans $ 9,087 $ 6,600 $ 18,269 $ 17,058 Unused lines of credit 33,383 397,716 28,898 385,307 Unused standby letters of credit and commercial letters of credit 3,353 — 2,340 1,992 Commitments to make loans are generally made for periods of 90 days or less. The fixed rate loan commitments of $9.1 million as of September 30, 2021, had interest rates ranging from 3.5% to 5.00% and maturities ranging from 1 year to 20 years.

Regulatory Capital Matters

Regulatory Capital Matters	9 Months Ended
	Sep. 30, 2021
Regulated Operations [Abstract]
Regulatory Capital Matters	REGULATORY CAPITAL MATTERS Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believed that as of September 30, 2021, the Company and Bank met all capital adequacy requirements to which they were subject. The Basel III rules require the Company and the Bank to maintain a capital conservation buffer of common equity Tier 1 capital of 2.5% above the minimum risk-weighted assets ratios. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At September 30, 2021 and December 31, 2020, the Company's and the Bank's capital ratios were in excess of the requirement to be "well capitalized" under regulatory guidelines. There are no conditions or events that management believes have changed the Company or the Bank's category. Actual and required capital amounts and ratios are presented below: Actual For Capital For Capital Adequacy Purposes + Capital Conservation Buffer (1) Well Capitalized Under Prompt Corrective (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio September 30, 2021 Common equity tier 1 to risk-weighted assets: Consolidated $ 167,229 9.82 % $ 76,616 4.50 % $ 119,181 7.00 % Bank 213,794 12.55 % 76,644 4.50 % 119,224 7.00 % $ 110,708 6.50 % Tier 1 capital to risk-weighted assets: Consolidated $ 190,602 11.19 % $ 102,155 6.00 % $ 144,719 8.50 % Bank 213,794 12.55 % 102,192 6.00 % 144,772 8.50 % $ 136,256 8.00 % Total capital to risk-weighted assets: Consolidated $ 241,562 14.19 % $ 136,206 8.00 % $ 178,771 10.50 % Bank 235,093 13.80 % 136,256 8.00 % 178,836 10.50 % $ 170,320 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated $ 190,602 7.68 % $ 99,227 4.00 % $ 99,227 4.00 % Bank 213,794 8.64 % 98,954 4.00 % 98,954 4.00 % $ 123,692 5.00 % December 31, 2020 Common equity tier 1 to risk-weighted assets: Consolidated $ 144,938 9.30 % $ 70,141 4.50 % $ 109,108 7.00 % Bank 185,655 11.94 % 69,950 4.50 % 108,812 7.00 % $ 101,040 6.50 % Tier 1 capital to risk-weighted assets: Consolidated $ 168,310 10.80 % $ 93,521 6.00 % $ 132,488 8.50 % Bank 185,655 11.94 % 93,267 6.00 % 132,129 8.50 % $ 124,356 8.00 % Total capital to risk-weighted assets: Consolidated $ 232,386 14.91 % $ 124,695 8.00 % $ 163,662 10.50 % Bank 205,127 13.20 % 124,356 8.00 % 163,218 10.50 % $ 155,446 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated $ 168,310 6.93 % $ 97,200 4.00 % $ 97,200 4.00 % Bank 185,655 7.67 % 96,809 4.00 % 96,809 4.00 % $ 121,011 5.00 % (1) Reflects the capital conservation buffer of 2.5% for risk-weighted asset ratios.

Fair Value

Fair Value	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value	FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1—Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or 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: Securities available for sale are recorded at fair value on a recurring basis as follows: the fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where pricing on similar securities is not available, a third party is engaged to calculate the fair value using the Municipal Market Data curve (Level 3). Loans Held for Sale, at Fair Value: The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). Loans Measured at Fair Value: During the normal course of business, loans originated with the initial intention to sell, but not ultimately sold, are transferred from held for sale to our portfolio of loans held for investment at fair value as the Company adopted the fair value option at origination. The fair value of these loans is determined by obtaining fair value pricing from a third-party software, and then layering an additional adjustment, ranging from 5 to 75 basis points, as determined by management, depending on the reason for the transfer from loans held for sale. Loans are also evaluated for further credit deterioration and additional credit adjustments are applied to the loan as necessary. Due to the adjustments made, the Company classifies the loans transferred from loans held for sale as recurring Level 3. Mortgage Servicing Rights ("MSRs") : In accordance with GAAP, the Company must record impairment charges on mortgage servicing rights on a non-recurring basis when the carrying value exceeds the estimated fair value. The fair value of our MSRs is obtained from a third-party valuation company that uses a discounted 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, costs to service, contractual servicing fee income, ancillary income, late fees, replacement reserves and other economic factors that are determined based on current market conditions. The reliance on Level 3 inputs to derive at the fair value of MSRs results in a Level 3 classification. Impaired Loans: Impaired loans are measured and recorded at fair value on a non-recurring basis. All of our nonaccrual loans and trouble debt restructured loans are considered impaired and are reviewed individually for the amount of impairment, if any. The fair value of impaired loans is estimated using one of several methods, including the fair value of the collateral or the present value of the expected future cash flows discounted at the loan's effective interest rate. For loans that are collateral dependent, the fair value of each loan’s collateral is generally based on estimated market prices from an independently prepared appraisal. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Non-real estate collateral may be valued using an appraisal, net book value per the borrower's financial statements, or aging reports, adjusted or discounted based on management's historical knowledge, changes in market conditions from the time of the valuation, and management's expertise and knowledge of the client and client's business. Such adjustments are considered unobservable, and the fair value measurement is categorized as a Level 3 measurement. Other Real Estate Owned: Other real estate owned assets are recorded at the lower of cost or fair value upon the transfer of a loan to other real estate owned and, subsequently, continue to be measured and carried at the lower of cost or fair value. The fair value of other real estate owned is based on recent real estate appraisals which are generally updated annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales, cost, and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Other real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Appraisals for both collateral-dependent impaired loans and real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by either the Company or the Company's appraisal services vendor. Once received, management reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Management monitors the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustment should be made to the appraisal value to arrive at fair value. Derivatives: Customer-initiated derivatives are traded in over-the counter markets where quoted market prices are not readily available. Fair value of customer-initiated derivatives is measured on a recurring basis using valuation models that use market observable inputs (Level 2). Mortgage banking related derivatives including commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are recorded at fair value on a recurring basis. The fair value of these commitments is based on the fair value of related mortgage loans determined using observable market data (Level 2). Interest rate lock commitments are adjusted for expectations of exercise and funding. This adjustment is not considered to be a material input. Assets and liabilities measured at fair value on a recurring basis are summarized below: (Dollars in thousands) Total Quoted Prices Significant Other Significant September 30, 2021 Securities available for sale: U.S. government sponsored entities and agencies $ 24,036 $ — $ 24,036 $ — State and political subdivision 146,695 — 145,562 1,133 Mortgage-backed securities: residential 20,086 — 20,086 — Mortgage-backed securities: commercial 23,540 — 23,540 — Collateralized mortgage obligations: residential 9,871 — 9,871 — Collateralized mortgage obligations: commercial 52,738 — 52,738 — U.S. Treasury 64,898 — 64,898 — SBA 15,108 — 15,108 — Asset backed securities 9,858 — 9,858 — Corporate bonds 22,698 — 22,698 — Total securities available for sale 389,528 — 388,395 1,133 Loans held for sale 15,351 — 15,351 — Loans measured at fair value: Residential real estate 9,764 — — 9,764 Derivative assets: Customer-initiated derivatives 6,906 — 6,906 — Forward contracts related to mortgage loans to be delivered for sale 227 — 227 — Interest rate lock commitments 670 — 670 — Total assets at fair value $ 422,446 $ — $ 411,549 $ 10,897 Derivative liabilities: Customer-initiated derivatives 6,906 — 6,906 — Forward contracts related to mortgage loans to be delivered for sale 21 — 21 — Interest rate lock commitments 8 — 8 — Total liabilities at fair value $ 6,935 $ — $ 6,935 $ — (Dollars in thousands) Total Quoted Prices Significant Other Significant December 31, 2020 Securities available for sale: U.S. government sponsored entities and agencies $ 26,358 $ — $ 26,358 $ — State and political subdivision 132,723 — 131,259 1,464 Mortgage-backed securities: residential 26,081 — 26,081 — Mortgage-backed securities: commercial 11,918 — 11,918 — Collateralized mortgage obligations: residential 13,446 — 13,446 — Collateralized mortgage obligations: commercial 58,512 — 58,512 — SBA 17,593 — 17,593 — Asset backed securities 10,072 — 10,072 — Corporate bonds 6,029 — 6,029 — Total securities available for sale $ 302,732 $ — $ 301,268 $ 1,464 Loans held for sale 43,482 — 43,482 — Loans measured at fair value: Residential real estate 8,037 — — 8,037 Derivative assets: Customer-initiated derivatives 12,515 — 12,515 — Forward contracts related to mortgage loans to be delivered for sale 46 — 46 — Interest rate lock commitments 2,194 — 2,194 — Total assets at fair value $ 369,006 $ — $ 359,505 $ 9,501 Derivative liabilities: Customer-initiated derivatives 12,515 — 12,515 — Forward contracts related to mortgage loans to be delivered for sale 423 — 423 — Total liabilities at fair value $ 12,938 $ — $ 12,938 $ — There were no transfers between levels within the fair value hierarchy, within a specific category, during the nine months ended September 30, 2021 or year ended December 31, 2020. The Level 3 investment securities disclosed as of September 30, 2021 and December 31, 2020 were acquired from Ann Arbor State Bank during the first quarter of 2020. The following table summarizes the changes in Level 3 loans measured at fair value on a recurring basis. For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Loans held for investment Beginning balance $ 11,059 $ 4,056 $ 8,037 $ 4,063 Transfers from loans held for sale — 1,468 4,656 2,284 Gains (losses): Recorded in "Mortgage banking activities" (43) 65 (397) 62 Repayments (1,252) (509) (2,532) (1,329) Ending balance $ 9,764 $ 5,080 $ 9,764 $ 5,080 There were $100 thousand in loans held for investment measured at fair value that were on nonaccrual status or 90 days past due with a fair value of $100 thousand as of September 30, 2021. There were $105 thousand in loans held for investment measured at fair value that were on nonaccrual status or 90 days past due with a fair value of $109 thousand as of December 31, 2020. The Company has elected the fair value option for loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company's policy on loans held for investment. As of September 30, 2021 and December 31, 2020, the aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held for sale carried at fair value was as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Aggregate fair value $ 15,351 $ 43,482 Contractual balance 14,835 41,808 Unrealized gain 516 1,674 The total amount of gains as a result of changes in fair value of loans held for sale included in "Mortgage banking activities" for the three months ended September 30, 2021 and 2020 were as follows: For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Change in fair value $ 194 $ 556 $ (1,158) $ 1,201 Assets measured at fair value on a non-recurring basis are summarized below: (Dollars in thousands) Total Significant Unobservable Inputs September 30, 2021 Impaired loans: Residential real estate $ 488 $ 488 Commercial and industrial 302 302 Mortgage servicing rights 7,205 7,205 Total $ 7,995 $ 7,995 December 31, 2020 Impaired loans: Commercial and industrial $ 1,270 $ 1,270 Mortgage servicing rights 3,981 3,981 Total $ 5,251 $ 5,251 The Company recorded specific reserves of $130 thousand and $95 thousand to reduce the value of the impaired loans noted above at September 30, 2021 and December 31, 2020, respectively, based on the estimated fair value of the underlying collateral. The Company also recorded $242 thousand of chargeoffs during the nine months ended September 30, 2021 related to the impaired loans at fair value. There were chargeoffs of $315 thousand related to impaired loans at fair value during the year ended December 31, 2020. There were no write downs recorded in other real estate owned during the nine months ended September 30, 2021 or the year ended December 31, 2020. The table below presents quantitative information about the significant unobservable inputs for assets measured at fair value on a nonrecurring basis at September 30, 2021 and December 31, 2020: (Dollars in thousands) Fair Value at September 30, 2021 Valuation Significant Discount % Range/Amount Impaired loans $ 790 Discounted appraisals; estimated net realizable value of collateral Collateral discounts 5.00-100.00% Mortgage servicing rights 7,205 Discounted cash flow Prepayment speed 6.83 % Discount rate 8.00 % (Dollars in thousands) Fair value at Valuation Significant Discount % Range/Amount Impaired loans $ 1,270 Discounted appraisals; estimated net realizable value of collateral Collateral discounts 10.00-90.00% Mortgage servicing rights 3,981 Discounted cash flow Prepayment speed 8.71 % Discount rate 7.75 % The carrying amounts and estimated fair values of financial instruments, excluding those previously presented unless otherwise noted, at September 30, 2021 and December 31, 2020 are noted in the table below. Estimated Fair Value (Dollars in thousands) Carrying Value Quoted Prices in Significant Significant Total September 30, 2021 Financial assets: Cash and cash equivalents $ 293,824 $ 30,810 $ 263,014 $ — $ 293,824 Other investments 14,398 N/A N/A N/A N/A Net loans 1,697,986 — — 1,728,396 1,728,396 Accrued interest receivable 7,779 — 2,696 5,083 7,779 Financial liabilities: Deposits 2,066,992 — 2,099,195 — 2,099,195 Borrowings 182,058 — 186,018 — 186,018 Subordinated notes 29,668 — 31,500 — 31,500 Accrued interest payable 1,079 — 1,079 — 1,079 December 31, 2020 Financial assets: Cash and cash equivalents $ 264,071 $ 25,245 $ 238,826 $ — $ 264,071 Other investments 14,398 N/A N/A N/A N/A Net loans 1,701,240 — — 1,740,093 1,740,093 Accrued interest receivable 7,511 — 1,460 6,051 7,511 Financial liabilities: Deposits 1,963,312 — 2,022,399 — 2,022,399 Borrowings 185,684 — 192,546 — 192,546 Subordinated notes 44,592 — 45,902 — 45,902 Accrued interest payable 1,081 — 1,081 — 1,081 The methods and assumptions, not previously presented, used to estimate fair value are described as follows: (a) Cash and Cash Equivalents The carrying amounts of cash on hand and non-interest due from bank accounts approximate fair values and are classified as Level 1. The carrying amounts of fed funds sold and interest bearing due from bank accounts approximate fair values and are classified as Level 2. (b) Other Investments It is not practical to determine the fair value of FHLB stock and Arctaris investment bond due to restrictions placed on their transferability. (c) Loans Fair value of loans, excluding loans held for sale, are estimated as follows: Fair values for all loans are estimated using present value of future estimated cash flows, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality, resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. (d) Deposits The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 2 classification. Fair values for fixed and variable rate certificates of deposit are estimated using a present value of future estimated cash flows calculation that applies interest rates currently being offered on certificates of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification . (e) Borrowings The fair values of the Company's short-term and long-term borrowings are estimated using present value of future estimated cash flows using current interest rates offered to the Company for similar types of borrowing arrangements, resulting in a Level 2 classification. (f) Subordinated Notes The fair value of the Company's subordinated notes is calculated based on present value of future estimated cash flows using current interest rates offered to the Company for similar types of borrowing arrangements, resulting in a Level 2 classification. (g) Accrued Interest Receivable/Payable The carrying amounts of accrued interest approximate fair value resulting in a Level 3 classification for receivable and a Level 2 classification for payable, consistent with their associated assets/liabilities.

Derivatives

Derivatives	9 Months Ended
	Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	DERIVATIVES The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. These interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions with approved, reputable, independent counterparties with substantially matching terms. The agreements are considered standalone derivatives, and changes in the fair value of derivatives are reported in earnings as non-interest income. Credit risk arises from the possible inability of counterparties to meet the terms of their contracts. The Company's exposure is limited to the replacement value of the contracts rather than the notional, principal or contract amounts. There are provisions in the agreements with the counterparties that allow for certain unsecured credit exposure up to an agreed threshold. Exposures in excess of the agreed thresholds are collateralized. In addition, the Company minimizes credit risk through credit approvals, limits, and monitoring procedures. Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. It is the Company's practice to enter into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are not designated in hedge relationships. Fair values were estimated based on changes in mortgage interest rates from the date of the commitments. Changes in the fair values of these mortgage-banking derivatives are included in mortgage banking activities. The following table presents the notional amount and fair value of the Company's derivative instruments held or issued in connection with customer initiated and mortgage banking activities: September 30, 2021 December 31, 2020 (Dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Included in other assets: Customer-initiated and mortgage banking derivatives: Customer-initiated derivatives $ 151,095 $ 6,906 $ 136,023 $ 12,515 Forward contracts related to mortgage loans to be delivered for sale 38,721 227 10,191 46 Interest rate lock commitments 56,871 670 91,531 2,194 Total derivatives included in other assets $ 246,687 $ 7,803 $ 237,745 $ 14,755 Included in other liabilities: Customer-initiated and mortgage banking derivatives: Customer-initiated derivatives $ 151,095 $ 6,906 $ 136,023 $ 12,515 Forward contracts related to mortgage loans to be delivered for sale 15,645 21 92,899 423 Interest rate lock commitments 3,096 8 — — Total derivatives included in other liabilities $ 169,836 $ 6,935 $ 228,922 $ 12,938 In the normal course of business, the Company may decide to settle a forward contract rather than fulfill the contract. Cash received or paid in this settlement manner is included in "Mortgage banking activities" in the consolidated statements of income and is considered a cost of executing a forward contract. The following table presents the gains (losses) related to derivative instruments reflecting the changes in fair value: For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) Location of Gain (Loss) 2021 2020 2021 2020 Forward contracts related to mortgage loans to be delivered for sale Mortgage banking activities $ 34 $ (1,207) $ 1,528 $ (3,996) Interest rate lock commitments Mortgage banking activities 87 391 (1,532) 1,808 Total loss recognized in income $ 121 $ (816) $ (4) $ (2,188) Balance Sheet Offsetting: Certain financial instruments, including customer-initiated derivatives and interest rate swaps, may be eligible for offset in the consolidated balance sheets and/or subject to master netting arrangements or similar agreements. The Company is a party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes based on an accounting policy election. The table below presents information about the Company's financial instruments that are eligible for offset. Gross amounts not offset in the statements of financial position (Dollars in thousands) Gross amounts recognized Gross amounts offset in the statements of financial condition Net amounts presented in the statements of financial condition Financial instruments Collateral (received)/posted Net amount September 30, 2021 Offsetting derivative assets: Customer initiated derivatives $ 6,906 $ — $ 6,906 $ — $ — $ 6,906 Offsetting derivative liabilities: Customer initiated derivatives $ 6,906 $ — $ 6,906 $ — $ 10,383 $ (3,477) December 31, 2020 Offsetting derivative assets: Customer initiated derivatives $ 12,515 $ — $ 12,515 $ — $ — $ 12,515 Offsetting derivative liabilities: Customer initiated derivatives $ 12,515 $ — $ 12,515 $ — $ 15,383 $ (2,868)

Parent Company Financial Statem

Parent Company Financial Statements	9 Months Ended
	Sep. 30, 2021
Condensed Financial Information Disclosure [Abstract]
Parent Company Financial Statements	PARENT COMPANY FINANCIAL STATEMENTS Balance Sheets—Parent Company (Dollars in thousands) September 30, 2021 December 31, 2020 Assets Cash and cash equivalents $ 8,220 $ 25,779 Investment in banking subsidiary 257,126 232,671 Investment in captive insurance subsidiary — 1,625 Income tax benefit 78 355 Other assets 23 63 Total assets $ 265,447 $ 260,493 Liabilities Subordinated notes $ 29,668 $ 44,592 Accrued expenses and other liabilities 1,845 574 Total liabilities 31,513 45,166 Shareholders' equity 233,934 215,327 Total liabilities and shareholders' equity $ 265,447 $ 260,493 Statements of Income and Comprehensive Income—Parent Company For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Income Dividend income from bank subsidiary $ — $ 5,000 $ — $ 41,500 Dividend income from captive subsidiary — — 1,629 — Total income $ — $ 5,000 $ 1,629 $ 41,500 Expenses Interest on borrowed funds — 11 — 33 Interest on subordinated notes 373 632 1,469 1,903 Other expenses 363 302 895 1,017 Total expenses $ 736 $ 945 $ 2,364 $ 2,953 Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries (736) 4,055 (735) 38,547 Income tax (benefit) expense 132 228 342 383 Equity in (overdistributed) undistributed earnings of subsidiaries 10,069 926 25,796 (26,890) Net income $ 9,465 $ 5,209 $ 25,403 $ 12,040 Other comprehensive income (loss) (216) 783 (3,327) 4,451 Total comprehensive income, net of tax $ 9,249 $ 5,992 $ 22,076 $ 16,491 Statements of Cash Flows—Parent Company For the nine months ended September 30, (Dollars in thousands) 2021 2020 Cash flows from operating activities Net income $ 25,403 $ 12,040 Adjustments to reconcile net income to net cash provided by operating activities: Equity in over (under) distributed earnings of subsidiaries (25,796) 26,890 Stock based compensation expense 71 72 Net change in other assets, net 317 420 Net change in other liabilities, net 1,269 654 Net cash provided by operating activities 1,264 40,076 Cash flows from investing activities Cash used in acquisitions — (67,944) Net cash used in investing activities — (67,944) Cash flows from financing activities Preferred stock offering, net of issuance costs — 23,370 Pay down of subordinated debt (15,000) — Share buyback - redeemed stock (1,364) (620) Common stock dividends paid (1,296) (1,082) Preferred stock dividends paid (1,406) — Proceeds from exercised stock options 243 95 Net cash (used in) provided by financing activities (18,823) 21,763 Net decrease in cash and cash equivalents (17,559) (6,105) Beginning cash and cash equivalents 25,779 35,210 Ending cash and cash equivalents $ 8,220 $ 29,105

Earnings Per Common Share

Earnings Per Common Share	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Earnings Per Common Share	EARNINGS PER COMMON SHARE The Company has elected to use the two-class method in calculating earnings per share due to the unvested restricted stock awards qualifying as participating securities. The two-class method is used in the calculation of basic and diluted earnings per common share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participating rights in undistributed earnings. Average shares of common stock for diluted net income per common share include shares to be issued upon the exercise of stock options granted under the Company's share-based compensation plans and restricted stock awards. The calculation of basic and diluted earnings per share using the two-class method for the periods noted below was as follows: For the three months ended September 30, For the nine months ended September 30, (In thousands, except per share data) 2021 2020 2021 2020 Net income $ 9,465 $ 5,209 $ 25,403 $ 12,040 Preferred stock dividends 468 — 1,406 — Net income available to common shareholders 8,997 5,209 23,997 12,040 Net income allocated to participating securities 138 40 331 140 Net income allocated to common shareholders (1) $ 8,859 $ 5,169 $ 23,666 $ 11,900 Weighted average common shares - issued 7,638 7,734 7,633 7,730 Average unvested restricted share awards (119) (59) (107) (90) Weighted average common shares outstanding - basic 7,519 7,675 7,526 7,640 Effect of dilutive securities: Weighted average common stock equivalents 119 37 105 61 Weighted average common shares outstanding - diluted 7,638 7,712 7,631 7,701 EPS available to common shareholders Basic earnings per common share $ 1.19 $ 0.68 $ 3.15 $ 1.56 Diluted earnings per common share $ 1.16 $ 0.67 $ 3.10 $ 1.55 (1) Net income allocated to common shareholders for basic and diluted earnings per share may differ under the two-class method as a result of adding common share equivalents for options to dilutive shares outstanding, which alters the ratio used to allocate net income to common shareholders and participating securities for the purposes of calculating diluted earnings per share.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTSOn November 4, 2021, the Company entered into an Agreement and Plan of Merger with First Merchants Corporation (“First Merchants”), pursuant to which the Company will merge with and into First Merchants (the “Merger”), subject to the satisfaction of customary closing conditions. At the effective time of the Merger, each outstanding share of common stock of the Company will be converted into the right to receive 0.7167 shares of First Merchants common stock and $10.17 in cash, and each outstanding share of the Company’s 7.50% Non-Cumulative Perpetual Preferred Stock, Series B (the “Company Preferred Stock”) will be converted into the right to receive a share of a newly created series of preferred stock of First Merchants having voting powers, preferences and special rights that are substantially identical to the Company Preferred Stock.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and conform to practices within the banking industry and include all of the information and disclosures required by generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting. The accompanying unaudited consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair presentation of financial results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results for the full year or any other period. These interim unaudited financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2020, included in our Annual Report on Form 10-K, filed with the SEC on March 12, 2021.
Principles of Consolidation	The accompanying consolidated financial statements include the accounts of the Company and its consolidated subsidiaries after elimination of significant intercompany transactions and accounts.
Use of Estimates	Use of Estimates: To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided; therefore, future results could differ. These estimates and assumptions are subject to many risks and
Impact of Recently Adopted and Issued Accounting Standards	Impact of Recently Issued Accounting Standards: Leases In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," to improve transparency and comparability across entities regarding leasing arrangements. This ASU requires the recognition of a separate lease liability representing the required discounted lease payments over the lease term and a separate lease asset representing the right to use the underlying asset during the same lease term. Additionally, this ASU provides clarification regarding the identification of certain components of contracts that would represent a lease as well as requires additional disclosures to the notes of the financial statements. The guidance is effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, and is to be applied under an optional transition method. The Company is planning to adopt this new guidance within the time frame noted above. The Company is currently evaluating the impact of adopting this new guidance on its consolidated financial statements but does not expect that the adoption will have a material impact. Additionally, the Company does not expect to significantly change operating lease agreements prior to adoption. Allowance for Credit Losses In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," to replace the current incurred loss methodology for recognizing credit losses, which delays recognition until it is probable a loss has been incurred, with a methodology that reflects an estimate of all expected credit losses and considers additional reasonable and supportable forecasted information when determining credit loss estimates. This impacts the calculation of the allowance for credit losses for all financial assets measured under the amortized cost basis, including PCI loans at the time of and subsequent to acquisition. Additionally, credit losses related to available-for-sale debt securities would be recorded through the allowance for credit losses and not as a direct adjustment to the amortized cost of the securities. The guidance is effective for the Company for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently evaluating the impact of adopting this new guidance on its consolidated financial statements, current systems and processes. At this time, the Company is reviewing potential methodologies for estimating expected credit losses using reasonable and supportable forecast information and has identified certain data and system requirements. Once adopted, we expect our allowance for loan losses to increase through a one-time adjustment to retained earnings; however, until our evaluation is complete, the estimated increase in allowance will be unknown. The Company is planning to adopt this new guidance within the time frame noted above. Reference Rate Reform In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" to provide guidance to ease the potential burden in accounting for, or recognizing the effects of, reference rate reform on financial reporting. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met and only applies to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In addition, the ASU
Fair Value Measurement	Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1—Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or 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.
Investment Securities	Investment Securities: Securities available for sale are recorded at fair value on a recurring basis as follows: the fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where pricing on similar securities is not available, a third party is engaged to calculate the fair value using the Municipal Market Data curve (Level 3).
Loans Held for Sale, at Fair Value	Loans Held for Sale, at Fair Value:   The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2).
Loans Measured at Fair Value	Loans Measured at Fair Value: During the normal course of business, loans originated with the initial intention to sell, but not ultimately sold, are transferred from held for sale to our portfolio of loans held for investment at fair value as the Company adopted the fair value option at origination. The fair value of these loans is determined by obtaining fair value pricing from a third-party software, and then layering an additional adjustment, ranging from 5 to 75 basis points, as determined by management, depending on the reason for the transfer from loans held for sale. Loans are also evaluated for further credit deterioration and additional credit adjustments are applied to the loan as necessary. Due to the adjustments made, the Company classifies the loans transferred from loans held for sale as recurring Level 3.
Mortgage Servicing Rights ("MSRs")	Mortgage Servicing Rights ("MSRs"): In accordance with GAAP, the Company must record impairment charges on mortgage servicing rights on a non-recurring basis when the carrying value exceeds the estimated fair value. The fair value of our MSRs is obtained from a third-party valuation company that uses a discounted 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, costs to service, contractual servicing fee income, ancillary income, late fees, replacement reserves and other economic factors that are determined based on current market conditions. The reliance on Level 3 inputs to derive at the fair value of MSRs results in a Level 3 classification.
Impaired Loans	Impaired Loans: Impaired loans are measured and recorded at fair value on a non-recurring basis. All of our nonaccrual loans and trouble debt restructured loans are considered impaired and are reviewed individually for the amount of impairment, if any. The fair value of impaired loans is estimated using one of several methods, including the fair value of the collateral or the present value of the expected future cash flows discounted at the loan's effective interest rate. For loans that are collateral dependent, the fair value of each loan’s collateral is generally based on estimated market prices from an independently prepared appraisal. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Non-real estate collateral may be valued using an appraisal, net book value per the borrower's financial statements, or aging reports, adjusted or discounted based on management's historical knowledge, changes in market conditions from the time of the valuation, and management's expertise and knowledge of the client and client's business. Such adjustments are considered unobservable, and the fair value measurement is categorized as a Level 3 measurement.
Other Real Estate Owned	Other Real Estate Owned: Other real estate owned assets are recorded at the lower of cost or fair value upon the transfer of a loan to other real estate owned and, subsequently, continue to be measured and carried at the lower of cost or fair value. The fair value of other real estate owned is based on recent real estate appraisals which are generally updated annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales, cost, and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Other real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Appraisals for both collateral-dependent impaired loans and real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by either the Company or the Company's appraisal services vendor. Once received, management reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Management monitors the
Derivatives	Derivatives: Customer-initiated derivatives are traded in over-the counter markets where quoted market prices are not readily available. Fair value of customer-initiated derivatives is measured on a recurring basis using valuation models that use market observable inputs (Level 2).

Securities (Tables)

Securities (Tables)	9 Months Ended
	Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Available-for-sale Securities	The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at September 30, 2021 and December 31, 2020 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). (Dollars in thousands) Amortized Gross Gross Fair September 30, 2021 U.S. government sponsored entities & agencies $ 24,531 $ 41 $ (536) $ 24,036 State and political subdivision 139,755 7,358 (418) 146,695 Mortgage-backed securities: residential 20,026 167 (107) 20,086 Mortgage-backed securities: commercial 23,531 387 (378) 23,540 Collateralized mortgage obligations: residential 9,796 87 (12) 9,871 Collateralized mortgage obligations: commercial 52,918 674 (854) 52,738 U.S. Treasury 65,118 67 (287) 64,898 SBA 15,011 154 (57) 15,108 Asset backed securities 9,896 11 (49) 9,858 Corporate bonds 22,801 27 (130) 22,698 Total available-for-sale $ 383,383 $ 8,973 $ (2,828) $ 389,528 December 31, 2020 U.S. government sponsored entities & agencies $ 26,575 $ 103 $ (320) $ 26,358 State and political subdivision 124,053 8,751 (81) 132,723 Mortgage-backed securities: residential 25,729 352 — 26,081 Mortgage-backed securities: commercial 11,434 484 — 11,918 Collateralized mortgage obligations: residential 13,320 138 (12) 13,446 Collateralized mortgage obligations: commercial 57,398 1,206 (92) 58,512 SBA 17,639 61 (107) 17,593 Asset backed securities 10,229 — (157) 10,072 Corporate bonds 5,998 34 (3) 6,029 Total available-for-sale $ 292,375 $ 11,129 $ (772) $ 302,732
Proceeds from Sales of Securities and Associated Gains and Losses	The proceeds from sales and calls of securities and the associated gains and losses for the periods below were as follows: (Dollars in thousands) For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 Proceeds $ — $ 5,351 $ 1,107 $ 47,789 Gross gains — 434 20 1,871 Gross losses — — — (9)
Securities by Contractual Maturity	The amortized cost and fair value of securities are shown in the table below by contractual maturity. Expected maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2021 (Dollars in thousands) Amortized Fair Within one year $ 7,839 $ 7,916 One to five years 59,824 60,459 Five to ten years 181,283 182,244 Beyond ten years 134,437 138,909 Total $ 383,383 $ 389,528
Securities with Unrealized Losses	The following table summarizes securities with unrealized losses at September 30, 2021 and December 31, 2020 aggregated by security type and length of time in a continuous unrealized loss position: Less than 12 Months 12 Months or Longer Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2021 Available-for-sale U.S. government sponsored entities & agencies $ — $ — $ 19,464 $ (536) $ 19,464 $ (536) State and political subdivision 33,804 (418) — — 33,804 (418) Mortgage-backed securities: residential 14,096 (107) — — 14,096 (107) Mortgage-backed securities: commercial 16,241 (378) — — 16,241 (378) Collateralized mortgage obligations: residential 906 (2) 950 (10) 1,856 (12) Collateralized mortgage obligations: commercial 20,219 (484) 10,679 (370) 30,898 (854) U.S. Treasury 55,186 (287) — — 55,186 (287) SBA — — 6,282 (57) 6,282 (57) Asset backed securities 4,770 (12) 2,493 (37) 7,263 (49) Corporate bonds 12,920 (130) — — 12,920 (130) Total available-for-sale $ 158,142 $ (1,818) $ 39,868 $ (1,010) $ 198,010 $ (2,828) December 31, 2020 Available-for-sale U.S. government sponsored entities & agencies $ 19,680 $ (320) $ — $ — $ 19,680 $ (320) State and political subdivision 4,880 (81) — — 4,880 (81) Collateralized mortgage obligations: residential — — 1,109 (12) 1,109 (12) Collateralized mortgage obligations: commercial 26,477 (92) — — 26,477 (92) SBA — — 12,209 (107) 12,209 (107) Asset backed securities — — 10,072 (157) 10,072 (157) Corporate bonds 2,497 (3) — — 2,497 (3) Total available-for-sale $ 53,534 $ (496) $ 23,390 $ (276) $ 76,924 $ (772)

Loans (Tables)

Loans (Tables)	9 Months Ended
	Sep. 30, 2021
Receivables [Abstract]
Schedule of Recorded Investment in Loans	The following table presents the recorded investment in loans at September 30, 2021 and December 31, 2020. The recorded investment in loans excludes accrued interest receivable. (Dollars in thousands) Originated Acquired Total September 30, 2021 Commercial real estate $ 660,255 $ 114,606 $ 774,861 Commercial and industrial 494,689 45,857 540,546 Residential real estate 381,515 22,002 403,517 Consumer 686 107 793 Total $ 1,537,145 $ 182,572 $ 1,719,717 December 31, 2020 Commercial real estate $ 587,631 $ 133,201 $ 720,832 Commercial and industrial 629,434 56,070 685,504 Residential real estate 280,645 34,831 315,476 Consumer 748 977 1,725 Total $ 1,498,458 $ 225,079 $ 1,723,537
Information as to Nonperforming Assets	Information as to nonperforming assets was as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Nonaccrual loans: Commercial real estate $ 3,768 $ 7,320 Commercial and industrial 4,746 7,490 Residential real estate 3,610 3,991 Consumer 9 15 Total nonaccrual loans 12,133 18,816 Total nonperforming assets $ 12,133 $ 18,816 Loans 90 days or more past due and still accruing $ 162 $ 269
Summary of Loan Delinquency	Loan delinquency as of the dates presented below was as follows: (Dollars in thousands) Current 30 - 59 Days 60 - 89 Days 90+ Days Total September 30, 2021 Commercial real estate $ 773,426 $ 1,435 $ — $ — $ 774,861 Commercial and industrial 540,441 105 — — 540,546 Residential real estate 401,281 851 226 1,159 403,517 Consumer 783 9 1 — 793 Total $ 1,715,931 $ 2,400 $ 227 $ 1,159 $ 1,719,717 December 31, 2020 Commercial real estate $ 714,196 $ 4,863 $ 1,773 $ — $ 720,832 Commercial and industrial 681,106 893 3,505 — 685,504 Residential real estate 305,800 5,420 1,110 3,146 315,476 Consumer 1,723 — — 2 1,725 Total $ 1,702,825 $ 11,176 $ 6,388 $ 3,148 $ 1,723,537
Information as to Impaired Loans	Information as to impaired loans, excluding PCI loans, was as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Nonaccrual loans $ 12,133 $ 18,816 Performing troubled debt restructurings: Commercial and industrial 336 546 Residential real estate 426 432 Total performing troubled debt restructurings 762 978 Total impaired loans, excluding purchase credit impaired loans $ 12,895 $ 19,794 (Dollars in thousand) Unpaid Principal Balance Recorded Investment September 30, 2021 Commercial real estate $ 3,656 $ 1,663 Commercial and industrial 4,545 — Residential real estate 255 2,698 Total PCI loans $ 8,456 $ 4,361 December 31, 2020 Commercial real estate $ 5,109 $ 1,773 Commercial and industrial 643 274 Residential real estate 4,017 2,949 Total PCI loans $ 9,769 $ 4,996 Loans individually evaluated for impairment are presented below. (Dollars in thousands) Recorded investment with Recorded investment Total Contractual Related September 30, 2021 Individually evaluated impaired loans: Commercial real estate $ 3,768 $ — $ 3,768 $ 4,112 $ — Commercial and industrial 4,055 842 4,897 5,512 343 Residential real estate 1,801 135 1,936 2,283 27 Total $ 9,624 $ 977 $ 10,601 $ 11,907 $ 370 December 31, 2020 Individually evaluated impaired loans: Commercial real estate $ 7,320 $ — $ 7,320 $ 7,720 $ — Commercial and industrial 7,964 630 8,594 9,208 307 Residential real estate 2,153 192 2,345 2,447 25 Total $ 17,437 $ 822 $ 18,259 $ 19,375 $ 332 (Dollars in thousands) Average Interest Cash Basis For the three months ended September 30, 2021 Individually evaluated impaired loans: Commercial real estate $ 4,259 $ — $ 30 Commercial and industrial 5,356 8 118 Residential real estate 2,125 7 — Total $ 11,740 $ 15 $ 148 For the nine months ended September 30, 2021 Individually evaluated impaired loans: Commercial real estate $ 5,298 $ — $ 332 Commercial and industrial 6,449 23 233 Residential real estate 2,143 18 10 Total $ 13,890 $ 41 $ 575 For the three months ended September 30, 2020 Individually evaluated impaired loans: Commercial real estate $ 7,139 $ — $ — Commercial and industrial 8,960 12 — Residential real estate 3,265 7 — Total $ 19,364 $ 19 $ — For the nine months ended September 30, 2020 Individually evaluated impaired loans: Commercial real estate $ 7,433 $ — $ — Commercial and industrial 13,086 34 84 Residential real estate 3,266 26 — Total $ 23,785 $ 60 $ 84
Summary of Recorded Investment of Loans Modified in TDRs	The following table presents the recorded investment of loans modified as TDRs during the three and nine months ended September 30, 2020 by type of concession granted. There were no loans modified as TDRs during the three months ended September 30, 2021. There were three loans modified as TDRs during the nine months ended September 30, 2021 which were subsequently paid off during the three months ended September 30, 2021. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession. Concession type Financial effects of (Dollars in thousands) Principal Interest Forbearance Total Total Net Provision Three Months Ended September 30, 2020 Commercial and industrial $ — $ — $ 148 1 $ 148 $ — $ — Total $ — $ — $ 148 1 $ 148 $ — $ — Nine Months Ended September 30, 2020 Commercial and industrial $ — $ — $ 148 1 $ 148 $ — $ — Residential real estate — 75 — 1 75 — — Total $ — $ 75 $ 148 2 $ 223 $ — $ — For the nine months ended September 30, 2021 (Dollars in thousands) Total number of Total recorded Provision for loan losses following a Commercial real estate 2 $ 1,556 $ — Total 2 $ 1,556 $ —
Risk Category of Loans by Class of Loans	Based on the most recent analysis performed, the risk category of loans by class of loans was as follows: (Dollars in thousands) Pass Special Substandard Doubtful Total September 30, 2021 Commercial real estate $ 748,486 $ 15,683 $ 10,204 $ 488 $ 774,861 Commercial and industrial 476,728 48,959 13,790 1,069 540,546 Total $ 1,225,214 $ 64,642 $ 23,994 $ 1,557 $ 1,315,407 December 31, 2020 Commercial real estate $ 685,690 $ 21,570 $ 13,045 $ 527 $ 720,832 Commercial and industrial 637,285 25,727 21,876 616 685,504 Total $ 1,322,975 $ 47,297 $ 34,921 $ 1,143 $ 1,406,336 The following presents residential real estate and consumer loans by credit quality: (Dollars in thousands) Performing Nonperforming Total September 30, 2021 Residential real estate $ 399,907 $ 3,610 $ 403,517 Consumer 784 9 793 Total $ 400,691 $ 3,619 $ 404,310 December 31, 2020 Residential real estate $ 311,485 $ 3,991 $ 315,476 Consumer 1,710 15 1,725 Total $ 313,195 $ 4,006 $ 317,201
Total Balance of PCI Loans and Activity in Accretable Yield	The following table reflects the activity in the accretable yield of PCI loans from past acquisitions, which includes total expected cash flows, including interest, in excess of the recorded investment. For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Accretable yield at beginning of period $ 6,242 $ 8,374 $ 7,097 $ 9,141 Additions due to acquisitions — — — 35 Accretion of income (368) (482) (1,160) (1,350) Adjustments to accretable yield — — (63) 66 Accretable yield at end of period $ 5,874 $ 7,892 $ 5,874 $ 7,892

Allowance for Loan Losses (Tabl

Allowance for Loan Losses (Tables)	9 Months Ended
	Sep. 30, 2021
Receivables [Abstract]
Information as to Impaired Loans, including PCI Loans	Information as to impaired loans, excluding PCI loans, was as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Nonaccrual loans $ 12,133 $ 18,816 Performing troubled debt restructurings: Commercial and industrial 336 546 Residential real estate 426 432 Total performing troubled debt restructurings 762 978 Total impaired loans, excluding purchase credit impaired loans $ 12,895 $ 19,794 (Dollars in thousand) Unpaid Principal Balance Recorded Investment September 30, 2021 Commercial real estate $ 3,656 $ 1,663 Commercial and industrial 4,545 — Residential real estate 255 2,698 Total PCI loans $ 8,456 $ 4,361 December 31, 2020 Commercial real estate $ 5,109 $ 1,773 Commercial and industrial 643 274 Residential real estate 4,017 2,949 Total PCI loans $ 9,769 $ 4,996 Loans individually evaluated for impairment are presented below. (Dollars in thousands) Recorded investment with Recorded investment Total Contractual Related September 30, 2021 Individually evaluated impaired loans: Commercial real estate $ 3,768 $ — $ 3,768 $ 4,112 $ — Commercial and industrial 4,055 842 4,897 5,512 343 Residential real estate 1,801 135 1,936 2,283 27 Total $ 9,624 $ 977 $ 10,601 $ 11,907 $ 370 December 31, 2020 Individually evaluated impaired loans: Commercial real estate $ 7,320 $ — $ 7,320 $ 7,720 $ — Commercial and industrial 7,964 630 8,594 9,208 307 Residential real estate 2,153 192 2,345 2,447 25 Total $ 17,437 $ 822 $ 18,259 $ 19,375 $ 332 (Dollars in thousands) Average Interest Cash Basis For the three months ended September 30, 2021 Individually evaluated impaired loans: Commercial real estate $ 4,259 $ — $ 30 Commercial and industrial 5,356 8 118 Residential real estate 2,125 7 — Total $ 11,740 $ 15 $ 148 For the nine months ended September 30, 2021 Individually evaluated impaired loans: Commercial real estate $ 5,298 $ — $ 332 Commercial and industrial 6,449 23 233 Residential real estate 2,143 18 10 Total $ 13,890 $ 41 $ 575 For the three months ended September 30, 2020 Individually evaluated impaired loans: Commercial real estate $ 7,139 $ — $ — Commercial and industrial 8,960 12 — Residential real estate 3,265 7 — Total $ 19,364 $ 19 $ — For the nine months ended September 30, 2020 Individually evaluated impaired loans: Commercial real estate $ 7,433 $ — $ — Commercial and industrial 13,086 34 84 Residential real estate 3,266 26 — Total $ 23,785 $ 60 $ 84
Activity in the Allowance for Loan Losses and Allocation of the Allowance for Loans	Activity in the allowance for loan losses is presented below: (Dollars in thousands) Commercial Commercial Residential Consumer Total For the three months ended September 30, 2021 Allowance for loan losses: Beginning balance $ 10,931 $ 8,390 $ 3,819 $ 4 $ 23,144 Provision expense (benefit) for loan losses (1,141) (278) 232 (2) (1,189) Gross chargeoffs — (6) (242) (7) (255) Recoveries — 8 14 9 31 Net (chargeoffs) recoveries — 2 (228) 2 (224) Ending allowance for loan losses $ 9,790 $ 8,114 $ 3,823 $ 4 $ 21,731 For the nine months ended September 30, 2021 Allowance for loan losses: Beginning balance $ 9,975 $ 8,786 $ 3,527 $ 9 $ 22,297 Provision expense (benefit) for loan losses (185) (692) 492 1 (384) Gross chargeoffs — (24) (242) (21) (287) Recoveries — 44 46 15 105 Net (chargeoffs) recoveries — 20 (196) (6) (182) Ending allowance for loan losses $ 9,790 $ 8,114 $ 3,823 $ 4 $ 21,731 For the three months ended September 30, 2020 Allowance for loan losses: Beginning balance $ 7,987 $ 6,496 $ 2,565 $ 15 $ 17,063 Provision expense (benefit) for loan losses 1,820 1,679 781 (10) 4,270 Gross chargeoffs — (10) (110) (4) (124) Recoveries 12 15 10 8 45 Net (chargeoffs) recoveries 12 5 (100) 4 (79) Ending allowance for loan losses $ 9,819 $ 8,180 $ 3,246 $ 9 $ 21,254 For the nine months ended September 30, 2020 Allowance for loan losses: Beginning Balance $ 5,773 $ 5,515 $ 1,384 $ 2 $ 12,674 Provision expense for loan losses 4,034 4,347 1,921 32 10,334 Gross chargeoffs — (1,729) (110) (47) (1,886) Recoveries 12 47 51 22 132 Net (chargeoffs) recoveries 12 (1,682) (59) (25) (1,754) Ending Allowance for loan losses $ 9,819 $ 8,180 $ 3,246 $ 9 $ 21,254 Allocation of the allowance for loan losses is presented below: (Dollars in thousands) Commercial Commercial Residential Consumer Total September 30, 2021 Allowance for loan losses: Individually evaluated for impairment $ — $ 343 $ 27 $ — $ 370 Collectively evaluated for impairment 9,353 7,771 3,563 4 20,691 Acquired with deteriorated credit quality 437 — 233 — 670 Ending allowance for loan losses $ 9,790 $ 8,114 $ 3,823 $ 4 $ 21,731 Balance of loans: Individually evaluated for impairment $ 3,768 $ 4,897 $ 1,936 $ — $ 10,601 Collectively evaluated for impairment 769,430 535,649 398,883 793 1,704,755 Acquired with deteriorated credit quality 1,663 — 2,698 — 4,361 Total loans $ 774,861 $ 540,546 $ 403,517 $ 793 $ 1,719,717 December 31, 2020 Allowance for loan losses: Individually evaluated for impairment $ — $ 307 $ 25 $ — $ 332 Collectively evaluated for impairment 9,550 8,465 3,273 9 21,297 Acquired with deteriorated credit quality 425 14 229 — 668 Ending allowance for loan losses $ 9,975 $ 8,786 $ 3,527 $ 9 $ 22,297 Balance of loans: Individually evaluated for impairment $ 7,320 $ 8,594 $ 2,345 $ — $ 18,259 Collectively evaluated for impairment 711,739 676,636 310,182 1,725 1,700,282 Acquired with deteriorated credit quality 1,773 274 2,949 — 4,996 Total loans $ 720,832 $ 685,504 $ 315,476 $ 1,725 $ 1,723,537

Premises and Equipment (Tables)

Premises and Equipment (Tables)	9 Months Ended
	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
Schedule of Premises and Equipment	Premises and equipment were as follows at September 30, 2021 and December 31, 2020: (Dollars in thousands) September 30, 2021 December 31, 2020 Land $ 3,572 $ 3,514 Buildings 10,710 10,656 Leasehold improvements 3,007 3,017 Furniture, fixtures and equipment 8,147 7,786 Total premises and equipment $ 25,436 $ 24,973 Less: Accumulated depreciation 10,266 9,139 Net premises and equipment $ 15,170 $ 15,834

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Core Deposit Intangibles	The table below presents the Company's net carrying amount of CDIs: (Dollars in thousands) September 30, 2021 December 31, 2020 Gross carrying amount $ 5,708 $ 5,708 Accumulated amortization (3,013) (2,512) Net Intangible $ 2,695 $ 3,196

Mortgage Servicing Rights, Net

Mortgage Servicing Rights, Net (Tables)	9 Months Ended
	Sep. 30, 2021
Mortgage Banking [Abstract]
Qualitative and Quantitative Information, Transferor's Continuing Involvement	The unpaid principal balances of these loans at September 30, 2021 and December 31, 2020 were as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Residential real estate mortgage loan portfolios serviced for: FNMA $ 535,348 $ 320,467
Servicing Asset at Amortized Cost	Activity for mortgage servicing rights was as follows for the three and nine months ended September 30, 2021 and 2020: For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Mortgage servicing rights: Balance, beginning of period $ 4,599 $ 1,213 $ 3,361 $ 76 Originated servicing 787 1,073 3,199 2,250 Amortization (335) (93) (1,509) (133) Balance, end of period $ 5,051 $ 2,193 $ 5,051 $ 2,193

Borrowings and Subordinated D_2

Borrowings and Subordinated Debt (Tables)	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Components of Long-term Debt and Short-term Borrowings	The following table presents the components of our short-term borrowings and long-term debt. September 30, 2021 December 31, 2020 (Dollars in thousands) Amount Weighted (1) Amount Weighted (1) Short-term borrowings: Securities sold under agreements to repurchase $ 2,681 0.25 % $ 3,204 0.30 % Total short-term borrowings 2,681 0.25 3,204 0.30 Long-term debt: Secured borrowing due in 2022 1,272 1.00 1,304 1.00 FHLB advances due in 2022 to 2029 (2) 178,105 1.06 181,176 1.09 Subordinated notes due in 2025 and 2029 (3) 29,668 4.75 44,592 5.29 Total long-term debt 209,045 1.58 227,072 1.91 Total short-term and long-term borrowings $ 211,726 1.56 % $ 230,276 1.89 % (1) Weighted average rate presented is the contractual rate which excludes premiums and discounts related to purchase accounting. (2) At September 30, 2021, the long-term FHLB advances consisted of 0.42% - 2.93% fixed rate notes and can be called through 2024 without penalty by the issuer. The September 30, 2021 balance includes FHLB advances of $178.0 million and purchase accounting premiums of $105 thousand. The December 31, 2020 balance includes FHLB advances of $181.0 million and purchase accounting premiums of $176 thousand.
Schedule of Maturities of Long-term Debt	The following table presents long-term borrowings by contractual maturity date: (Dollars in thousands) As of September 30, 2021 2021 $ 3,008 2022 11,272 2023 3,047 2024 30,000 2025 2,050 Thereafter 159,668 Total long-term borrowings $ 209,045

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Reconciliation of Expected Income Tax Expense	A reconciliation of expected income tax expense using the federal statutory rate of 21% for the three and nine months ended September 30, 2021 and 2020 and actual income tax expense is as follows: For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Income tax expense based on federal corporate tax rate $ 2,469 $ 1,328 $ 6,637 $ 2,970 Changes resulting from: Tax-exempt income (166) (154) (471) (469) Net operating loss carryback due to CARES Act — — — (290) Disqualified dispositions from stock options — — (4) (175) Other, net (12) (57) 36 73 Income tax expense $ 2,291 $ 1,117 $ 6,198 $ 2,109

Stock Based Compensation (Table

Stock Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Summary of Employee Stock Option Activity	The summary of our stock option activity for the nine months ended September 30, 2021 is as follows: Shares Weighted Average Weighted Average Remaining Contractual Options outstanding, beginning of period 345,218 $ 16.83 4.1 Exercised (23,800) 10.19 Forfeited (1,500) 10.00 Options outstanding, end of period 319,918 17.36 3.6 Options exercisable 319,918 $ 17.36 3.6
Summary of Changes in Nonvested Shares	A summary of changes in the Company's nonvested shares for the nine months ended September 30, 2021 is as follows: Nonvested Shares Shares Weighted Average Nonvested at January 1, 2021 93,270 $ 24.75 Granted 55,320 22.68 Vested (22,220) 25.54 Forfeited (8,000) 25.22 Nonvested at September 30, 2021 118,370 $ 23.60

Off- Balance Sheet Activities (

Off- Balance Sheet Activities (Tables)	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Exposure to Off-balance Sheet Risk	A summary of the contractual amounts of the Company's exposure to off-balance sheet risk is as follows: September 30, 2021 December 31, 2020 (Dollars in thousands) Fixed Variable Fixed Variable Commitments to make loans $ 9,087 $ 6,600 $ 18,269 $ 17,058 Unused lines of credit 33,383 397,716 28,898 385,307 Unused standby letters of credit and commercial letters of credit 3,353 — 2,340 1,992

Regulatory Capital Matters (Tab

Regulatory Capital Matters (Tables)	9 Months Ended
	Sep. 30, 2021
Regulated Operations [Abstract]
Schedule of actual and required capital amounts and ratios	Actual and required capital amounts and ratios are presented below: Actual For Capital For Capital Adequacy Purposes + Capital Conservation Buffer (1) Well Capitalized Under Prompt Corrective (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio September 30, 2021 Common equity tier 1 to risk-weighted assets: Consolidated $ 167,229 9.82 % $ 76,616 4.50 % $ 119,181 7.00 % Bank 213,794 12.55 % 76,644 4.50 % 119,224 7.00 % $ 110,708 6.50 % Tier 1 capital to risk-weighted assets: Consolidated $ 190,602 11.19 % $ 102,155 6.00 % $ 144,719 8.50 % Bank 213,794 12.55 % 102,192 6.00 % 144,772 8.50 % $ 136,256 8.00 % Total capital to risk-weighted assets: Consolidated $ 241,562 14.19 % $ 136,206 8.00 % $ 178,771 10.50 % Bank 235,093 13.80 % 136,256 8.00 % 178,836 10.50 % $ 170,320 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated $ 190,602 7.68 % $ 99,227 4.00 % $ 99,227 4.00 % Bank 213,794 8.64 % 98,954 4.00 % 98,954 4.00 % $ 123,692 5.00 % December 31, 2020 Common equity tier 1 to risk-weighted assets: Consolidated $ 144,938 9.30 % $ 70,141 4.50 % $ 109,108 7.00 % Bank 185,655 11.94 % 69,950 4.50 % 108,812 7.00 % $ 101,040 6.50 % Tier 1 capital to risk-weighted assets: Consolidated $ 168,310 10.80 % $ 93,521 6.00 % $ 132,488 8.50 % Bank 185,655 11.94 % 93,267 6.00 % 132,129 8.50 % $ 124,356 8.00 % Total capital to risk-weighted assets: Consolidated $ 232,386 14.91 % $ 124,695 8.00 % $ 163,662 10.50 % Bank 205,127 13.20 % 124,356 8.00 % 163,218 10.50 % $ 155,446 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated $ 168,310 6.93 % $ 97,200 4.00 % $ 97,200 4.00 % Bank 185,655 7.67 % 96,809 4.00 % 96,809 4.00 % $ 121,011 5.00 % (1) Reflects the capital conservation buffer of 2.5% for risk-weighted asset ratios.

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on a Recurring Basis	Assets and liabilities measured at fair value on a recurring basis are summarized below: (Dollars in thousands) Total Quoted Prices Significant Other Significant September 30, 2021 Securities available for sale: U.S. government sponsored entities and agencies $ 24,036 $ — $ 24,036 $ — State and political subdivision 146,695 — 145,562 1,133 Mortgage-backed securities: residential 20,086 — 20,086 — Mortgage-backed securities: commercial 23,540 — 23,540 — Collateralized mortgage obligations: residential 9,871 — 9,871 — Collateralized mortgage obligations: commercial 52,738 — 52,738 — U.S. Treasury 64,898 — 64,898 — SBA 15,108 — 15,108 — Asset backed securities 9,858 — 9,858 — Corporate bonds 22,698 — 22,698 — Total securities available for sale 389,528 — 388,395 1,133 Loans held for sale 15,351 — 15,351 — Loans measured at fair value: Residential real estate 9,764 — — 9,764 Derivative assets: Customer-initiated derivatives 6,906 — 6,906 — Forward contracts related to mortgage loans to be delivered for sale 227 — 227 — Interest rate lock commitments 670 — 670 — Total assets at fair value $ 422,446 $ — $ 411,549 $ 10,897 Derivative liabilities: Customer-initiated derivatives 6,906 — 6,906 — Forward contracts related to mortgage loans to be delivered for sale 21 — 21 — Interest rate lock commitments 8 — 8 — Total liabilities at fair value $ 6,935 $ — $ 6,935 $ — (Dollars in thousands) Total Quoted Prices Significant Other Significant December 31, 2020 Securities available for sale: U.S. government sponsored entities and agencies $ 26,358 $ — $ 26,358 $ — State and political subdivision 132,723 — 131,259 1,464 Mortgage-backed securities: residential 26,081 — 26,081 — Mortgage-backed securities: commercial 11,918 — 11,918 — Collateralized mortgage obligations: residential 13,446 — 13,446 — Collateralized mortgage obligations: commercial 58,512 — 58,512 — SBA 17,593 — 17,593 — Asset backed securities 10,072 — 10,072 — Corporate bonds 6,029 — 6,029 — Total securities available for sale $ 302,732 $ — $ 301,268 $ 1,464 Loans held for sale 43,482 — 43,482 — Loans measured at fair value: Residential real estate 8,037 — — 8,037 Derivative assets: Customer-initiated derivatives 12,515 — 12,515 — Forward contracts related to mortgage loans to be delivered for sale 46 — 46 — Interest rate lock commitments 2,194 — 2,194 — Total assets at fair value $ 369,006 $ — $ 359,505 $ 9,501 Derivative liabilities: Customer-initiated derivatives 12,515 — 12,515 — Forward contracts related to mortgage loans to be delivered for sale 423 — 423 — Total liabilities at fair value $ 12,938 $ — $ 12,938 $ —
Level 3 Rollforward	The following table summarizes the changes in Level 3 loans measured at fair value on a recurring basis. For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Loans held for investment Beginning balance $ 11,059 $ 4,056 $ 8,037 $ 4,063 Transfers from loans held for sale — 1,468 4,656 2,284 Gains (losses): Recorded in "Mortgage banking activities" (43) 65 (397) 62 Repayments (1,252) (509) (2,532) (1,329) Ending balance $ 9,764 $ 5,080 $ 9,764 $ 5,080
Information for Loans Held for Sale Carried at Fair Value	As of September 30, 2021 and December 31, 2020, the aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held for sale carried at fair value was as follows: (Dollars in thousands) September 30, 2021 December 31, 2020 Aggregate fair value $ 15,351 $ 43,482 Contractual balance 14,835 41,808 Unrealized gain 516 1,674 The total amount of gains as a result of changes in fair value of loans held for sale included in "Mortgage banking activities" for the three months ended September 30, 2021 and 2020 were as follows: For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Change in fair value $ 194 $ 556 $ (1,158) $ 1,201
Assets Measured at Fair Value on a Non-recurring Basis	Assets measured at fair value on a non-recurring basis are summarized below: (Dollars in thousands) Total Significant Unobservable Inputs September 30, 2021 Impaired loans: Residential real estate $ 488 $ 488 Commercial and industrial 302 302 Mortgage servicing rights 7,205 7,205 Total $ 7,995 $ 7,995 December 31, 2020 Impaired loans: Commercial and industrial $ 1,270 $ 1,270 Mortgage servicing rights 3,981 3,981 Total $ 5,251 $ 5,251
Inputs for Assets Measured at Fair Value on a Nonrecurring Basis	The table below presents quantitative information about the significant unobservable inputs for assets measured at fair value on a nonrecurring basis at September 30, 2021 and December 31, 2020: (Dollars in thousands) Fair Value at September 30, 2021 Valuation Significant Discount % Range/Amount Impaired loans $ 790 Discounted appraisals; estimated net realizable value of collateral Collateral discounts 5.00-100.00% Mortgage servicing rights 7,205 Discounted cash flow Prepayment speed 6.83 % Discount rate 8.00 % (Dollars in thousands) Fair value at Valuation Significant Discount % Range/Amount Impaired loans $ 1,270 Discounted appraisals; estimated net realizable value of collateral Collateral discounts 10.00-90.00% Mortgage servicing rights 3,981 Discounted cash flow Prepayment speed 8.71 % Discount rate 7.75 %
Carrying Amounts and Estimated Fair Values of Financial Instruments	The carrying amounts and estimated fair values of financial instruments, excluding those previously presented unless otherwise noted, at September 30, 2021 and December 31, 2020 are noted in the table below. Estimated Fair Value (Dollars in thousands) Carrying Value Quoted Prices in Significant Significant Total September 30, 2021 Financial assets: Cash and cash equivalents $ 293,824 $ 30,810 $ 263,014 $ — $ 293,824 Other investments 14,398 N/A N/A N/A N/A Net loans 1,697,986 — — 1,728,396 1,728,396 Accrued interest receivable 7,779 — 2,696 5,083 7,779 Financial liabilities: Deposits 2,066,992 — 2,099,195 — 2,099,195 Borrowings 182,058 — 186,018 — 186,018 Subordinated notes 29,668 — 31,500 — 31,500 Accrued interest payable 1,079 — 1,079 — 1,079 December 31, 2020 Financial assets: Cash and cash equivalents $ 264,071 $ 25,245 $ 238,826 $ — $ 264,071 Other investments 14,398 N/A N/A N/A N/A Net loans 1,701,240 — — 1,740,093 1,740,093 Accrued interest receivable 7,511 — 1,460 6,051 7,511 Financial liabilities: Deposits 1,963,312 — 2,022,399 — 2,022,399 Borrowings 185,684 — 192,546 — 192,546 Subordinated notes 44,592 — 45,902 — 45,902 Accrued interest payable 1,081 — 1,081 — 1,081

Derivatives (Tables)

Derivatives (Tables)	9 Months Ended
	Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Fair Value Hedges Included in the Consolidated Balance Sheets	The following table presents the notional amount and fair value of the Company's derivative instruments held or issued in connection with customer initiated and mortgage banking activities: September 30, 2021 December 31, 2020 (Dollars in thousands) Notional Amount Fair Value Notional Amount Fair Value Included in other assets: Customer-initiated and mortgage banking derivatives: Customer-initiated derivatives $ 151,095 $ 6,906 $ 136,023 $ 12,515 Forward contracts related to mortgage loans to be delivered for sale 38,721 227 10,191 46 Interest rate lock commitments 56,871 670 91,531 2,194 Total derivatives included in other assets $ 246,687 $ 7,803 $ 237,745 $ 14,755 Included in other liabilities: Customer-initiated and mortgage banking derivatives: Customer-initiated derivatives $ 151,095 $ 6,906 $ 136,023 $ 12,515 Forward contracts related to mortgage loans to be delivered for sale 15,645 21 92,899 423 Interest rate lock commitments 3,096 8 — — Total derivatives included in other liabilities $ 169,836 $ 6,935 $ 228,922 $ 12,938
Gains (Losses) Related to Derivative Instruments	The following table presents the gains (losses) related to derivative instruments reflecting the changes in fair value: For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) Location of Gain (Loss) 2021 2020 2021 2020 Forward contracts related to mortgage loans to be delivered for sale Mortgage banking activities $ 34 $ (1,207) $ 1,528 $ (3,996) Interest rate lock commitments Mortgage banking activities 87 391 (1,532) 1,808 Total loss recognized in income $ 121 $ (816) $ (4) $ (2,188)
Offsetting Assets	The table below presents information about the Company's financial instruments that are eligible for offset. Gross amounts not offset in the statements of financial position (Dollars in thousands) Gross amounts recognized Gross amounts offset in the statements of financial condition Net amounts presented in the statements of financial condition Financial instruments Collateral (received)/posted Net amount September 30, 2021 Offsetting derivative assets: Customer initiated derivatives $ 6,906 $ — $ 6,906 $ — $ — $ 6,906 Offsetting derivative liabilities: Customer initiated derivatives $ 6,906 $ — $ 6,906 $ — $ 10,383 $ (3,477) December 31, 2020 Offsetting derivative assets: Customer initiated derivatives $ 12,515 $ — $ 12,515 $ — $ — $ 12,515 Offsetting derivative liabilities: Customer initiated derivatives $ 12,515 $ — $ 12,515 $ — $ 15,383 $ (2,868)
Offsetting Liabilities	The table below presents information about the Company's financial instruments that are eligible for offset. Gross amounts not offset in the statements of financial position (Dollars in thousands) Gross amounts recognized Gross amounts offset in the statements of financial condition Net amounts presented in the statements of financial condition Financial instruments Collateral (received)/posted Net amount September 30, 2021 Offsetting derivative assets: Customer initiated derivatives $ 6,906 $ — $ 6,906 $ — $ — $ 6,906 Offsetting derivative liabilities: Customer initiated derivatives $ 6,906 $ — $ 6,906 $ — $ 10,383 $ (3,477) December 31, 2020 Offsetting derivative assets: Customer initiated derivatives $ 12,515 $ — $ 12,515 $ — $ — $ 12,515 Offsetting derivative liabilities: Customer initiated derivatives $ 12,515 $ — $ 12,515 $ — $ 15,383 $ (2,868)

Parent Company Financial Stat_2

Parent Company Financial Statements (Tables)	9 Months Ended
	Sep. 30, 2021
Condensed Financial Information Disclosure [Abstract]
Schedule of Condensed Balance Sheet	Balance Sheets—Parent Company (Dollars in thousands) September 30, 2021 December 31, 2020 Assets Cash and cash equivalents $ 8,220 $ 25,779 Investment in banking subsidiary 257,126 232,671 Investment in captive insurance subsidiary — 1,625 Income tax benefit 78 355 Other assets 23 63 Total assets $ 265,447 $ 260,493 Liabilities Subordinated notes $ 29,668 $ 44,592 Accrued expenses and other liabilities 1,845 574 Total liabilities 31,513 45,166 Shareholders' equity 233,934 215,327 Total liabilities and shareholders' equity $ 265,447 $ 260,493
Schedule of Condensed Income Statement and Comprehensive Income	Statements of Income and Comprehensive Income—Parent Company For the three months ended September 30, For the nine months ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Income Dividend income from bank subsidiary $ — $ 5,000 $ — $ 41,500 Dividend income from captive subsidiary — — 1,629 — Total income $ — $ 5,000 $ 1,629 $ 41,500 Expenses Interest on borrowed funds — 11 — 33 Interest on subordinated notes 373 632 1,469 1,903 Other expenses 363 302 895 1,017 Total expenses $ 736 $ 945 $ 2,364 $ 2,953 Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries (736) 4,055 (735) 38,547 Income tax (benefit) expense 132 228 342 383 Equity in (overdistributed) undistributed earnings of subsidiaries 10,069 926 25,796 (26,890) Net income $ 9,465 $ 5,209 $ 25,403 $ 12,040 Other comprehensive income (loss) (216) 783 (3,327) 4,451 Total comprehensive income, net of tax $ 9,249 $ 5,992 $ 22,076 $ 16,491
Schedule of Condensed Statements of Cash Flows	Statements of Cash Flows—Parent Company For the nine months ended September 30, (Dollars in thousands) 2021 2020 Cash flows from operating activities Net income $ 25,403 $ 12,040 Adjustments to reconcile net income to net cash provided by operating activities: Equity in over (under) distributed earnings of subsidiaries (25,796) 26,890 Stock based compensation expense 71 72 Net change in other assets, net 317 420 Net change in other liabilities, net 1,269 654 Net cash provided by operating activities 1,264 40,076 Cash flows from investing activities Cash used in acquisitions — (67,944) Net cash used in investing activities — (67,944) Cash flows from financing activities Preferred stock offering, net of issuance costs — 23,370 Pay down of subordinated debt (15,000) — Share buyback - redeemed stock (1,364) (620) Common stock dividends paid (1,296) (1,082) Preferred stock dividends paid (1,406) — Proceeds from exercised stock options 243 95 Net cash (used in) provided by financing activities (18,823) 21,763 Net decrease in cash and cash equivalents (17,559) (6,105) Beginning cash and cash equivalents 25,779 35,210 Ending cash and cash equivalents $ 8,220 $ 29,105

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Basic and Diluted Earnings Per Share	The calculation of basic and diluted earnings per share using the two-class method for the periods noted below was as follows: For the three months ended September 30, For the nine months ended September 30, (In thousands, except per share data) 2021 2020 2021 2020 Net income $ 9,465 $ 5,209 $ 25,403 $ 12,040 Preferred stock dividends 468 — 1,406 — Net income available to common shareholders 8,997 5,209 23,997 12,040 Net income allocated to participating securities 138 40 331 140 Net income allocated to common shareholders (1) $ 8,859 $ 5,169 $ 23,666 $ 11,900 Weighted average common shares - issued 7,638 7,734 7,633 7,730 Average unvested restricted share awards (119) (59) (107) (90) Weighted average common shares outstanding - basic 7,519 7,675 7,526 7,640 Effect of dilutive securities: Weighted average common stock equivalents 119 37 105 61 Weighted average common shares outstanding - diluted 7,638 7,712 7,631 7,701 EPS available to common shareholders Basic earnings per common share $ 1.19 $ 0.68 $ 3.15 $ 1.56 Diluted earnings per common share $ 1.16 $ 0.67 $ 3.10 $ 1.55 (1) Net income allocated to common shareholders for basic and diluted earnings per share may differ under the two-class method as a result of adding common share equivalents for options to dilutive shares outstanding, which alters the ratio used to allocate net income to common shareholders and participating securities for the purposes of calculating diluted earnings per share.

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands	Aug. 10, 2020USD ($)$ / sharesshares	Jan. 02, 2020USD ($)	Sep. 30, 2021centeroffice$ / shares	Sep. 30, 2021USD ($)centeroffice$ / shares	Sep. 30, 2020USD ($)	Dec. 31, 2020$ / shares
Business Acquisition [Line Items]
Number of offices | office				17
Number of mortgage loan production offices | office			1	1
Preferred stock, interest rate			7.50%	7.50%
Preferred stock, liquidation preference (in dollars per share) | $ / shares	$ 2,500		$ 2,500	$ 2,500		$ 2,500
Net proceeds from issuance of preferred stock				$ 0	$ 23,370
Series B Preferred Stock
Business Acquisition [Line Items]
Preferred stock, interest rate	7.50%
Depositary Shares
Business Acquisition [Line Items]
Sale of stock, number of shares issued (in shares) | shares	1,000,000
Percentage of interest in a share of perpetual preferred stock	1.00%
Preferred stock, liquidation preference (in dollars per share) | $ / shares	$ 25
Sale of stock, consideration received on transaction	$ 25,000
Sale of stock, underwriting discounts and offering expenses	1,600
Net proceeds from issuance of preferred stock	$ 23,400
Metro Detroit
Business Acquisition [Line Items]
Number of banking centers | center			11	11
Grand Rapids
Business Acquisition [Line Items]
Number of banking centers | center			1	1
Jackson
Business Acquisition [Line Items]
Number of banking centers | center			1	1
Ann Arbor
Business Acquisition [Line Items]
Number of banking centers | center			3	3
Ann Arbor Bancorp, Inc
Business Acquisition [Line Items]
Total cash consideration		$ 67,900

Securities (Available-for-sale

Securities (Available-for-sale Securities) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 383,383	$ 292,375
Gross Unrealized Gains	8,973	11,129
Gross Unrealized Losses	(2,828)	(772)
Fair Value	389,528	302,732
U.S. government sponsored entities & agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	24,531	26,575
Gross Unrealized Gains	41	103
Gross Unrealized Losses	(536)	(320)
Fair Value	24,036	26,358
State and political subdivision
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	139,755	124,053
Gross Unrealized Gains	7,358	8,751
Gross Unrealized Losses	(418)	(81)
Fair Value	146,695	132,723
Mortgage-backed securities: residential
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	20,026	25,729
Gross Unrealized Gains	167	352
Gross Unrealized Losses	(107)	0
Fair Value	20,086	26,081
Mortgage-backed securities: commercial
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	23,531	11,434
Gross Unrealized Gains	387	484
Gross Unrealized Losses	(378)	0
Fair Value	23,540	11,918
Collateralized mortgage obligations: residential
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	9,796	13,320
Gross Unrealized Gains	87	138
Gross Unrealized Losses	(12)	(12)
Fair Value	9,871	13,446
Collateralized mortgage obligations: commercial
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	52,918	57,398
Gross Unrealized Gains	674	1,206
Gross Unrealized Losses	(854)	(92)
Fair Value	52,738	58,512
U.S. Treasury
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	65,118
Gross Unrealized Gains	67
Gross Unrealized Losses	(287)
Fair Value	64,898
SBA
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	15,011	17,639
Gross Unrealized Gains	154	61
Gross Unrealized Losses	(57)	(107)
Fair Value	15,108	17,593
Asset backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	9,896	10,229
Gross Unrealized Gains	11	0
Gross Unrealized Losses	(49)	(157)
Fair Value	9,858	10,072
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	22,801	5,998
Gross Unrealized Gains	27	34
Gross Unrealized Losses	(130)	(3)
Fair Value	$ 22,698	$ 6,029

Securities (Proceeds from Sales

Securities (Proceeds from Sales of Securities and Gains and Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Proceeds	$ 0	$ 5,351	$ 1,107	$ 47,789
Gross gains	0	434	20	1,871
Gross losses	$ 0	$ 0	$ 0	$ (9)

Securities (Maturity) (Details)

Securities (Maturity) (Details) $ in Thousands	Sep. 30, 2021USD ($)
Amortized Cost
Within one year	$ 7,839
One to five years	59,824
Five to ten years	181,283
Beyond ten years	134,437
Amortized Cost	383,383
Fair Value
Within one year	7,916
One to five years	60,459
Five to ten years	182,244
Beyond ten years	138,909
Fair Value	$ 389,528

Securities (Additional Informat

Securities (Additional Information) (Details) $ in Thousands	Sep. 30, 2021USD ($)security	Dec. 31, 2020USD ($)
Debt Securities, Available-for-sale [Line Items]
Securities available-for-sale | $	$ 389,528	$ 302,732
Number of securities | security	330
Number of securities in an unrealized loss position | security	67
Credit Concentration Risk | Securities | Tax-exempt securities backed by the Michigan School Bond Loan Fund
Debt Securities, Available-for-sale [Line Items]
Number of securities | security	68
Securities available-for-sale | $	$ 52,800
Collateral pledged
Debt Securities, Available-for-sale [Line Items]
Securities pledged | $	$ 90,600	$ 98,700

Securities (Securities with Unr

Securities (Securities with Unrealized Losses) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair value
Less than 12 Months	$ 158,142	$ 53,534
12 Months or Longer	39,868	23,390
Total	198,010	76,924
Unrealized Losses
Less than 12 Months	(1,818)	(496)
12 Months or Longer	(1,010)	(276)
Total	(2,828)	(772)
U.S. government sponsored entities & agencies
Fair value
Less than 12 Months	0	19,680
12 Months or Longer	19,464	0
Total	19,464	19,680
Unrealized Losses
Less than 12 Months	0	(320)
12 Months or Longer	(536)	0
Total	(536)	(320)
State and political subdivision
Fair value
Less than 12 Months	33,804	4,880
12 Months or Longer	0	0
Total	33,804	4,880
Unrealized Losses
Less than 12 Months	(418)	(81)
12 Months or Longer	0	0
Total	(418)	(81)
Mortgage-backed securities: residential
Fair value
Less than 12 Months	14,096
12 Months or Longer	0
Total	14,096
Unrealized Losses
Less than 12 Months	(107)
12 Months or Longer	0
Total	(107)
Mortgage-backed securities: commercial
Fair value
Less than 12 Months	16,241
12 Months or Longer	0
Total	16,241
Unrealized Losses
Less than 12 Months	(378)
12 Months or Longer	0
Total	(378)
Collateralized mortgage obligations: residential
Fair value
Less than 12 Months	906	0
12 Months or Longer	950	1,109
Total	1,856	1,109
Unrealized Losses
Less than 12 Months	(2)	0
12 Months or Longer	(10)	(12)
Total	(12)	(12)
Collateralized mortgage obligations: commercial
Fair value
Less than 12 Months	20,219	26,477
12 Months or Longer	10,679	0
Total	30,898	26,477
Unrealized Losses
Less than 12 Months	(484)	(92)
12 Months or Longer	(370)	0
Total	(854)	(92)
U.S. Treasury
Fair value
Less than 12 Months	55,186
12 Months or Longer	0
Total	55,186
Unrealized Losses
Less than 12 Months	(287)
12 Months or Longer	0
Total	(287)
SBA
Fair value
Less than 12 Months	0	0
12 Months or Longer	6,282	12,209
Total	6,282	12,209
Unrealized Losses
Less than 12 Months	0	0
12 Months or Longer	(57)	(107)
Total	(57)	(107)
Asset backed securities
Fair value
Less than 12 Months	4,770	0
12 Months or Longer	2,493	10,072
Total	7,263	10,072
Unrealized Losses
Less than 12 Months	(12)	0
12 Months or Longer	(37)	(157)
Total	(49)	(157)
Corporate bonds
Fair value
Less than 12 Months	12,920	2,497
12 Months or Longer	0	0
Total	12,920	2,497
Unrealized Losses
Less than 12 Months	(130)	(3)
12 Months or Longer	0	0
Total	$ (130)	$ (3)

Loans (Recorded Investment in L

Loans (Recorded Investment in Loans) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 1,719,717		$ 1,719,717		$ 1,723,537
Residential loans held for sale	15,351		15,351		43,482
Proceeds from sales of residential real estate loans			371,371	$ 377,238
Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans	774,861		774,861		720,832
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Total loans	540,546		540,546		685,504
Commercial and industrial | Paycheck Protection Program, CARES Act
Loans and Leases Receivable Disclosure [Line Items]
Total loans	147,600		147,600		290,100
Residential real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans	403,517		403,517		315,476
Proceeds from sales of residential real estate loans	101,300	$ 157,200	371,400	$ 377,200
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total loans	793		793		1,725
Originated
Loans and Leases Receivable Disclosure [Line Items]
Total loans	1,537,145		1,537,145		1,498,458
Originated | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans	660,255		660,255		587,631
Originated | Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Total loans	494,689		494,689		629,434
Originated | Residential real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans	381,515		381,515		280,645
Originated | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total loans	686		686		748
Acquired
Loans and Leases Receivable Disclosure [Line Items]
Total loans	182,572		182,572		225,079
Acquired | Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans	114,606		114,606		133,201
Acquired | Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Total loans	45,857		45,857		56,070
Acquired | Residential real estate
Loans and Leases Receivable Disclosure [Line Items]
Total loans	22,002		22,002		34,831
Acquired | Consumer
Loans and Leases Receivable Disclosure [Line Items]
Total loans	$ 107		$ 107		$ 977

Loans (Nonperforming Assets) (D

Loans (Nonperforming Assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Receivables [Abstract]
Loan commitment non accrual	$ 216	$ 12
Financing Receivable, Past Due [Line Items]
Loans 90 days or more past due and still accruing	162	269
Nonperforming
Financing Receivable, Past Due [Line Items]
Total nonaccrual loans	12,133	18,816
Total nonperforming assets	12,133	18,816
Nonperforming | Commercial real estate
Financing Receivable, Past Due [Line Items]
Total nonaccrual loans	3,768	7,320
Nonperforming | Commercial and industrial
Financing Receivable, Past Due [Line Items]
Total nonaccrual loans	4,746	7,490
Nonperforming | Residential real estate
Financing Receivable, Past Due [Line Items]
Total nonaccrual loans	3,610	3,991
Nonperforming | Consumer
Financing Receivable, Past Due [Line Items]
Total nonaccrual loans	$ 9	$ 15

Loans (Loan Delinquency) (Detai

Loans (Loan Delinquency) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Total loans	$ 1,719,717	$ 1,723,537
Current
Financing Receivable, Past Due [Line Items]
Total loans	1,715,931	1,702,825
30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	2,400	11,176
60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	227	6,388
90+ Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	1,159	3,148
Commercial real estate
Financing Receivable, Past Due [Line Items]
Total loans	774,861	720,832
Commercial real estate | Current
Financing Receivable, Past Due [Line Items]
Total loans	773,426	714,196
Commercial real estate | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	1,435	4,863
Commercial real estate | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	0	1,773
Commercial real estate | 90+ Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Total loans	540,546	685,504
Commercial and industrial | Current
Financing Receivable, Past Due [Line Items]
Total loans	540,441	681,106
Commercial and industrial | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	105	893
Commercial and industrial | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	0	3,505
Commercial and industrial | 90+ Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	0	0
Residential real estate
Financing Receivable, Past Due [Line Items]
Total loans	403,517	315,476
Residential real estate | Current
Financing Receivable, Past Due [Line Items]
Total loans	401,281	305,800
Residential real estate | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	851	5,420
Residential real estate | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	226	1,110
Residential real estate | 90+ Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	1,159	3,146
Consumer
Financing Receivable, Past Due [Line Items]
Total loans	793	1,725
Consumer | Current
Financing Receivable, Past Due [Line Items]
Total loans	783	1,723
Consumer | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	9	0
Consumer | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	1	0
Consumer | 90+ Days Past Due
Financing Receivable, Past Due [Line Items]
Total loans	$ 0	$ 2

Loans (Information as to Impair

Loans (Information as to Impaired Loans) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Impaired [Line Items]
Total performing troubled debt restructurings	$ 4,300	$ 4,800
Total recorded investment	10,601	18,259
Performing
Financing Receivable, Impaired [Line Items]
Total performing troubled debt restructurings	762	978
Commercial and industrial
Financing Receivable, Impaired [Line Items]
Total recorded investment	4,897	8,594
Residential real estate
Financing Receivable, Impaired [Line Items]
Total recorded investment	1,936	2,345
Financial Asset, Excluding Purchased Credit Impaired Loans
Financing Receivable, Impaired [Line Items]
Nonaccrual loans	12,133	18,816
Total recorded investment	12,895	19,794
Financial Asset, Excluding Purchased Credit Impaired Loans | Performing
Financing Receivable, Impaired [Line Items]
Total performing troubled debt restructurings	762	978
Financial Asset, Excluding Purchased Credit Impaired Loans | Commercial and industrial | Performing
Financing Receivable, Impaired [Line Items]
Total performing troubled debt restructurings	336	546
Financial Asset, Excluding Purchased Credit Impaired Loans | Residential real estate | Performing
Financing Receivable, Impaired [Line Items]
Total performing troubled debt restructurings	$ 426	$ 432

Loans (Troubled Debt Restructur

Loans (Troubled Debt Restructuring Additional Information) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded investment in troubled debt restructurings	$ 4,300	$ 4,800
Recorded investment in troubled debt restructurings, reserve	351	317
Principal deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loans on COVID-related deferral	1,100
Payment Deferral Greater Than Six Months
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loans on COVID-related deferral	0
Nonperforming
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded investment in troubled debt restructurings	3,500	3,800
Performing
Financing Receivable, Troubled Debt Restructuring [Line Items]
Recorded investment in troubled debt restructurings	$ 762	$ 978

Loans (Recorded Investment of L

Loans (Recorded Investment of Loans Modified in TDRs) (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021loan	Sep. 30, 2020USD ($)loan	Sep. 30, 2021loan	Sep. 30, 2020USD ($)loan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment		$ 148		$ 223
Total number of loans | loan	0	1	3	2
Financial effects of modification, net charge-offs		$ 0		$ 0
Provision for loan losses		0		0
Principal deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment		0		0
Interest rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment		0		75
Forbearance agreement
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment		148		148
Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment		$ 148		$ 148
Total number of loans | loan		1		1
Financial effects of modification, net charge-offs		$ 0		$ 0
Provision for loan losses		0		0
Commercial and industrial | Principal deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment		0		0
Commercial and industrial | Interest rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment		0		0
Commercial and industrial | Forbearance agreement
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment		$ 148		148
Residential real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment				$ 75
Total number of loans | loan				1
Financial effects of modification, net charge-offs				$ 0
Provision for loan losses				0
Residential real estate | Principal deferral
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment				0
Residential real estate | Interest rate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment				75
Residential real estate | Forbearance agreement
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total recorded investment				$ 0

Loans (Number of Loans Modified

Loans (Number of Loans Modified as TDR) (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021loan	Sep. 30, 2021USD ($)loan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total number of loans | loan	0	2
Total recorded investment		$ 1,556
Provision for loan losses following a subsequent default		$ 0
Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Total number of loans | loan		2
Total recorded investment		$ 1,556
Provision for loan losses following a subsequent default		$ 0

Loans (Risk Category of Loans b

Loans (Risk Category of Loans by Class of Loans) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	$ 1,719,717	$ 1,723,537
Commercial real estate and Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	1,315,407	1,406,336
Commercial real estate and Commercial and industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	1,225,214	1,322,975
Commercial real estate and Commercial and industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	64,642	47,297
Commercial real estate and Commercial and industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	23,994	34,921
Commercial real estate and Commercial and industrial | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	1,557	1,143
Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	774,861	720,832
Commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	748,486	685,690
Commercial real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	15,683	21,570
Commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	10,204	13,045
Commercial real estate | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	488	527
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	540,546	685,504
Commercial and industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	476,728	637,285
Commercial and industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	48,959	25,727
Commercial and industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	13,790	21,876
Commercial and industrial | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	1,069	616
Residential real estate and Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	404,310	317,201
Residential real estate and Consumer | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	400,691	313,195
Residential real estate and Consumer | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	3,619	4,006
Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	403,517	315,476
Residential real estate | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	399,907	311,485
Residential real estate | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	3,610	3,991
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	793	1,725
Consumer | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	784	1,710
Consumer | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Total loans	$ 9	$ 15

Loans (Purchased Credit Impaire

Loans (Purchased Credit Impaired Loans Additional Information) (Details)	Sep. 30, 2021acquisition
Receivables [Abstract]
Number of previous acquisitions	5

Loans (Total Balance of all Pur

Loans (Total Balance of all Purchase Credit Impaired Loans from Acquisitions) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Recorded Investment	$ 10,601	$ 18,259
Commercial real estate
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Recorded Investment	3,768	7,320
Commercial and industrial
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Recorded Investment	4,897	8,594
Residential real estate
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Recorded Investment	1,936	2,345
Acquired with deteriorated credit quality
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid Principal Balance	8,456	9,769
Recorded Investment	4,361	4,996
Acquired with deteriorated credit quality | Commercial real estate
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid Principal Balance	3,656	5,109
Recorded Investment	1,663	1,773
Acquired with deteriorated credit quality | Commercial and industrial
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid Principal Balance	4,545	643
Recorded Investment	0	274
Acquired with deteriorated credit quality | Residential real estate
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid Principal Balance	255	4,017
Recorded Investment	$ 2,698	$ 2,949

Loans (Activity in the Accretab

Loans (Activity in the Accretable Yield of PCI Loans) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretable yield at beginning of period	$ 6,242	$ 8,374	$ 7,097	$ 9,141
Additions due to acquisitions	0	0	0	35
Accretion of income	(368)	(482)	(1,160)	(1,350)
Adjustments to accretable yield	0	0	(63)	66
Accretable yield at end of period	$ 5,874	$ 7,892	$ 5,874	$ 7,892

Allowance for Loan Losses (Addi

Allowance for Loan Losses (Additional Information) (Details) $ in Thousands	Sep. 30, 2021USD ($)loanPoolloan
Receivables [Abstract]
Number of purchase credit impaired loan pools | loanPool	5
Number of non-pooled purchase credit impaired loans | loan	9
Nonaccrual loan valuation threshold | $	$ 250

Allowance for Loan Losses (Loan

Allowance for Loan Losses (Loans Individually Evaluated for Impairment) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Financing Receivable, Impaired [Line Items]
Recorded investment with no related allowance	$ 9,624		$ 9,624		$ 17,437
Recorded investment with related allowance	977		977		822
Total recorded investment	10,601		10,601		18,259
Contractual principal balance	11,907		11,907		19,375
Related allowance	370		370		332
Average Recorded Investment	11,740	$ 19,364	13,890	$ 23,785
Interest Income Recognized	15	19	41	60
Cash Basis Interest Recognized	148	0	575	84
Commercial real estate
Financing Receivable, Impaired [Line Items]
Recorded investment with no related allowance	3,768		3,768		7,320
Recorded investment with related allowance	0		0		0
Total recorded investment	3,768		3,768		7,320
Contractual principal balance	4,112		4,112		7,720
Related allowance	0		0		0
Average Recorded Investment	4,259	7,139	5,298	7,433
Interest Income Recognized	0	0	0	0
Cash Basis Interest Recognized	30	0	332	0
Commercial and industrial
Financing Receivable, Impaired [Line Items]
Recorded investment with no related allowance	4,055		4,055		7,964
Recorded investment with related allowance	842		842		630
Total recorded investment	4,897		4,897		8,594
Contractual principal balance	5,512		5,512		9,208
Related allowance	343		343		307
Average Recorded Investment	5,356	8,960	6,449	13,086
Interest Income Recognized	8	12	23	34
Cash Basis Interest Recognized	118	0	233	84
Residential real estate
Financing Receivable, Impaired [Line Items]
Recorded investment with no related allowance	1,801		1,801		2,153
Recorded investment with related allowance	135		135		192
Total recorded investment	1,936		1,936		2,345
Contractual principal balance	2,283		2,283		2,447
Related allowance	27		27		$ 25
Average Recorded Investment	2,125	3,265	2,143	3,266
Interest Income Recognized	7	7	18	26
Cash Basis Interest Recognized	$ 0	$ 0	$ 10	$ 0

Allowance for Loan Losses (Acti

Allowance for Loan Losses (Activity in Allowance for Loan Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 23,144	$ 17,063	$ 22,297	$ 12,674	$ 12,674
Provision expense (benefit) for loan losses	(1,189)	4,270	(384)	10,334
Gross chargeoffs	(255)	(124)	(287)	(1,886)
Recoveries	31	45	105	132
Net (chargeoffs) recoveries	(224)	(79)	(182)	(1,754)
Ending allowance for loan losses	21,731	21,254	21,731	21,254	22,297
Allowance for loan losses and Balance of loans
Allowance for loan losses, individually evaluated for impairment	370		370		332
Allowance for loan losses, Collectively evaluated for impairment	20,691		20,691		21,297
Ending allowance for loan losses	21,731	21,254	21,731	21,254	22,297
Balance of loans, individually evaluated for impairment	10,601		10,601		18,259
Balance of loans, collectively evaluated for impairment	1,704,755		1,704,755		1,700,282
Total loans	1,719,717		1,719,717		1,723,537
Acquired with deteriorated credit quality
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance			668
Ending allowance for loan losses	670		670		668
Allowance for loan losses and Balance of loans
Ending allowance for loan losses	670		670		668
Total loans	4,361		4,361		4,996
Commercial real estate
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	10,931	7,987	9,975	5,773	5,773
Provision expense (benefit) for loan losses	(1,141)	1,820	(185)	4,034
Gross chargeoffs	0	0	0	0
Recoveries	0	12	0	12
Net (chargeoffs) recoveries	0	12	0	12
Ending allowance for loan losses	9,790	9,819	9,790	9,819	9,975
Allowance for loan losses and Balance of loans
Allowance for loan losses, individually evaluated for impairment	0		0		0
Allowance for loan losses, Collectively evaluated for impairment	9,353		9,353		9,550
Ending allowance for loan losses	9,790	9,819	9,790	9,819	9,975
Balance of loans, individually evaluated for impairment	3,768		3,768		7,320
Balance of loans, collectively evaluated for impairment	769,430		769,430		711,739
Total loans	774,861		774,861		720,832
Commercial real estate | Acquired with deteriorated credit quality
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance			425
Ending allowance for loan losses	437		437		425
Allowance for loan losses and Balance of loans
Ending allowance for loan losses	437		437		425
Total loans	1,663		1,663		1,773
Commercial and industrial
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	8,390	6,496	8,786	5,515	5,515
Provision expense (benefit) for loan losses	(278)	1,679	(692)	4,347
Gross chargeoffs	(6)	(10)	(24)	(1,729)
Recoveries	8	15	44	47
Net (chargeoffs) recoveries	2	5	20	(1,682)
Ending allowance for loan losses	8,114	8,180	8,114	8,180	8,786
Allowance for loan losses and Balance of loans
Allowance for loan losses, individually evaluated for impairment	343		343		307
Allowance for loan losses, Collectively evaluated for impairment	7,771		7,771		8,465
Ending allowance for loan losses	8,114	8,180	8,114	8,180	8,786
Balance of loans, individually evaluated for impairment	4,897		4,897		8,594
Balance of loans, collectively evaluated for impairment	535,649		535,649		676,636
Total loans	540,546		540,546		685,504
Commercial and industrial | Acquired with deteriorated credit quality
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance			14
Ending allowance for loan losses	0		0		14
Allowance for loan losses and Balance of loans
Ending allowance for loan losses	0		0		14
Total loans	0		0		274
Residential real estate
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	3,819	2,565	3,527	1,384	1,384
Provision expense (benefit) for loan losses	232	781	492	1,921
Gross chargeoffs	(242)	(110)	(242)	(110)
Recoveries	14	10	46	51
Net (chargeoffs) recoveries	(228)	(100)	(196)	(59)
Ending allowance for loan losses	3,823	3,246	3,823	3,246	3,527
Allowance for loan losses and Balance of loans
Allowance for loan losses, individually evaluated for impairment	27		27		25
Allowance for loan losses, Collectively evaluated for impairment	3,563		3,563		3,273
Ending allowance for loan losses	3,823	3,246	3,823	3,246	3,527
Balance of loans, individually evaluated for impairment	1,936		1,936		2,345
Balance of loans, collectively evaluated for impairment	398,883		398,883		310,182
Total loans	403,517		403,517		315,476
Residential real estate | Acquired with deteriorated credit quality
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance			229
Ending allowance for loan losses	233		233		229
Allowance for loan losses and Balance of loans
Ending allowance for loan losses	233		233		229
Total loans	2,698		2,698		2,949
Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	4	15	9	2	2
Provision expense (benefit) for loan losses	(2)	(10)	1	32
Gross chargeoffs	(7)	(4)	(21)	(47)
Recoveries	9	8	15	22
Net (chargeoffs) recoveries	2	4	(6)	(25)
Ending allowance for loan losses	4	9	4	9	9
Allowance for loan losses and Balance of loans
Allowance for loan losses, individually evaluated for impairment	0		0		0
Allowance for loan losses, Collectively evaluated for impairment	4		4		9
Ending allowance for loan losses	4	$ 9	4	$ 9	9
Balance of loans, individually evaluated for impairment	0		0		0
Balance of loans, collectively evaluated for impairment	793		793		1,725
Total loans	793		793		1,725
Consumer | Acquired with deteriorated credit quality
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance			0
Ending allowance for loan losses	0		0		0
Allowance for loan losses and Balance of loans
Ending allowance for loan losses	0		0		0
Total loans	$ 0		$ 0		$ 0

Premises and Equipment (Details

Premises and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Total premises and equipment	$ 25,436		$ 25,436		$ 24,973
Less: Accumulated depreciation	10,266		10,266		9,139
Net premises and equipment	15,170		15,170		15,834
Depreciation expenses	406	$ 426	1,204	$ 1,259
Operating leases, rent expense	456	$ 450	1,400	$ 1,400
Land
Property, Plant and Equipment [Line Items]
Total premises and equipment	3,572		3,572		3,514
Buildings
Property, Plant and Equipment [Line Items]
Total premises and equipment	10,710		10,710		10,656
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total premises and equipment	3,007		3,007		3,017
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Total premises and equipment	$ 8,147		$ 8,147		$ 7,786

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Additional Information) (Details)	1 Months Ended			3 Months Ended		9 Months Ended		59 Months Ended
	Jan. 31, 2020USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Jan. 31, 2020acquisition	Dec. 31, 2020USD ($)
Goodwill [Line Items]
Number of banks acquired | acquisition								3
Goodwill recognized in the acquisition				$ 35,554,000		$ 35,554,000			$ 35,554,000
Goodwill impairment						0
Amortization of core deposit intangibles						501,000	$ 576,000
Lotus Bank
Goodwill [Line Items]
Goodwill acquired			$ 4,600,000
Bank of Michigan
Goodwill [Line Items]
Goodwill acquired		$ 4,800,000
Ann Arbor Bancorp, Inc
Goodwill [Line Items]
Goodwill acquired	$ 26,200,000
Core Deposits
Goodwill [Line Items]
Amortization of core deposit intangibles				$ 167,000	$ 191,000	$ 501,000	$ 576,000

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets (Acquired Intangible Assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Net Intangible	$ 2,695	$ 3,196
Core Deposits
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	5,708	5,708
Accumulated amortization	(3,013)	(2,512)
Net Intangible	$ 2,695	$ 3,196

Mortgage Servicing Rights, Ne_2

Mortgage Servicing Rights, Net (Unpaid Principal Balance) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Mortgage Banking [Abstract]
FNMA	$ 535,348	$ 320,467

Mortgage Servicing Rights, Ne_3

Mortgage Servicing Rights, Net (Additional Information) (Details) - USD ($)	3 Months Ended				9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Mortgage Servicing Loan Inputs and Valuation Techniques [Line Items]
Custodial escrow balances	$ 3,300,000				$ 3,300,000		$ 1,900,000
Mortgage servicing rights, servicing fee, net of allowances	(32,000)	$ (93,000)			(289,000)	$ (129,000)
Valuation allowance related to mortgage servicing rights	0		$ (17,000)	$ 17,000	0
Mortgage servicing rights	$ 7,200,000				$ 7,200,000		$ 4,000,000
Discount rate | Valuation Technique, Discounted Cash Flow
Mortgage Servicing Loan Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input percentage	8.00%				8.00%		7.75%
Minimum | Prepayment speed | Valuation Technique, Discounted Cash Flow
Mortgage Servicing Loan Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input percentage	6.12%				6.12%		8.44%
Maximum | Prepayment speed | Valuation Technique, Discounted Cash Flow
Mortgage Servicing Loan Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input percentage	8.25%				8.25%		10.41%

Mortgage Servicing Rights, Ne_4

Mortgage Servicing Rights, Net (Schedule of Mortgage Servicing Rights) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Mortgage servicing rights:
Balance, beginning of period			$ 3,361
Balance, end of period	$ 5,051		5,051
Residential Mortgage
Mortgage servicing rights:
Balance, beginning of period	4,599	$ 1,213	3,361	$ 76
Originated servicing	787	1,073	3,199	2,250
Amortization	(335)	(93)	(1,509)	(133)
Balance, end of period	$ 5,051	$ 2,193	$ 5,051	$ 2,193

Borrowings and Subordinated D_3

Borrowings and Subordinated Debt (Components of Long-term Debt and Short-term Borrowings) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Dec. 18, 2019	Dec. 21, 2015
Short-term Debt [Line Items]
Total short-term borrowings	$ 2,681	$ 3,204
Total short-term borrowings, weighted average rate	0.25%	0.30%
Debt Instrument [Line Items]
Total long-term borrowings	$ 209,045	$ 227,072
Total long-term debt, weighted average rate	1.58%	1.91%
Total short-term and long-term borrowings	$ 211,726	$ 230,276
Total short-term and long-term borrowings, weighted average rate	1.56%	1.89%
FHLB advances	$ 178,000	$ 181,000
FHLB advances, purchase accounting premiums	105	176
Secured borrowing due in 2022 | Secured borrowing due in 2022
Debt Instrument [Line Items]
Total long-term borrowings	$ 1,272	$ 1,304
Total long-term debt, weighted average rate	1.00%	1.00%
Fixed interest rate	1.00%
FHLB Advances | FHLB advances due in 2022 to 2029
Debt Instrument [Line Items]
Total long-term borrowings	$ 178,105	$ 181,176
Total long-term debt, weighted average rate	1.06%	1.09%
Subordinated notes
Debt Instrument [Line Items]
Fixed interest rate			4.75%	6.375%
Long-term debt gross			$ 30,000	$ 15,000
Subordinated notes | Subordinated notes due in 2025 and 2029
Debt Instrument [Line Items]
Total long-term borrowings	$ 29,668	$ 44,592
Total long-term debt, weighted average rate	4.75%	5.29%
Minimum | FHLB Advances | FHLB advances due in 2022 to 2029
Debt Instrument [Line Items]
Fixed interest rate	0.42%
Maximum | FHLB Advances | FHLB advances due in 2022 to 2029
Debt Instrument [Line Items]
Fixed interest rate	2.93%
Securities sold under agreements to repurchase
Short-term Debt [Line Items]
Total short-term borrowings	$ 2,681	$ 3,204
Total short-term borrowings, weighted average rate	0.25%	0.30%

Borrowings and Subordinated D_4

Borrowings and Subordinated Debt (Contractual Maturity of Borrowings) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
2021	$ 3,008
2022	11,272
2023	3,047
2024	30,000
2025	2,050
Thereafter	159,668
Total long-term borrowings	$ 209,045	$ 227,072

Borrowings and Subordinated D_5

Borrowings and Subordinated Debt (Additional Information) (Details) - USD ($)	Dec. 15, 2020	Dec. 18, 2019	Sep. 30, 2021	Dec. 31, 2020	Dec. 21, 2015
Debt Instrument [Line Items]
FHLB advances			$ 178,000,000	$ 181,000,000
Federal Home Loan Bank, advances, collateral			582,800,000
Federal Home Loan Bank, advances, maximum borrowing capacity			219,400,000
Total short-term borrowings			2,681,000	3,204,000
Subordinated notes			209,045,000	227,072,000
Line of credit | Unsecured borrowings
Debt Instrument [Line Items]
Maximum borrowing capacity			157,500,000
Secured borrowing due in 2022 | Secured borrowing due in 2022
Debt Instrument [Line Items]
Subordinated notes			$ 1,272,000	1,304,000
Fixed interest rate			1.00%
Subordinated notes
Debt Instrument [Line Items]
Fixed interest rate		4.75%			6.375%
Long-term debt gross		$ 30,000,000			$ 15,000,000
Subordinated notes | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate		3.11%
Subordinated notes | Subordinated notes due in 2025
Debt Instrument [Line Items]
Long-term debt gross			$ 30,000,000	45,000,000
Debt issuance costs			332,000	408,000
Subordinated notes | Subordinated notes due in 2025 | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	4.77%
Federal Reserve Bank | Line of credit | Secured borrowing due in 2022
Debt Instrument [Line Items]
Maximum borrowing capacity			5,100,000
Line of credit | Comerica Bank | Comerica Bank short term line of credit
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 30,000,000
Fixed interest rate			4.05%
Unused capacity commitment fee percentage			0.20%
Outstanding balance			$ 0
Federal funds purchased
Debt Instrument [Line Items]
Total short-term borrowings			0	0
Securities sold under agreements to repurchase
Debt Instrument [Line Items]
Total short-term borrowings			2,681,000	$ 3,204,000
Federal Reserve Bank Advances | Paycheck Protection Program Liquidity Facility
Debt Instrument [Line Items]
Total short-term borrowings			0
Maturity overnight
Debt Instrument [Line Items]
Fair value of collateralized mortgage obligations			3,800,000
Maturity overnight | Securities sold under agreements to repurchase
Debt Instrument [Line Items]
Total short-term borrowings			$ 2,700,000

Income Taxes (Reconciliation of

Income Taxes (Reconciliation of Expected Income Tax Expense) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended
	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income tax expense based on federal corporate tax rate		$ 2,469	$ 1,328		$ 6,637	$ 2,970
Changes resulting from:
Tax-exempt income		(166)	(154)		(471)	(469)
Net operating loss carryback due to CARES Act	$ (290)	0	0		0	(290)
Disqualified dispositions from stock options		0	0	$ (175)	(4)	(175)
Other, net		(12)	(57)		36	73
Income tax expense		$ 2,291	$ 1,117		$ 6,198	$ 2,109

Income Taxes (Additional Inform

Income Taxes (Additional Information) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended
	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Operating loss carryforwards	$ 2,200			$ 2,200
Tax benefit from net operating loss carryback due to CARES Act	$ 290	$ 0	$ 0		$ 0	$ 290
Tax benefit from disqualified dispositions from stock options		$ 0	$ 0	$ 175	$ 4	$ 175

Stock Based Compensation (2018

Stock Based Compensation (2018 Equity Incentive Plan) (Details) - shares	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Apr. 17, 2018
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards granted (in shares)	55,320
2018 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock reserved for issuance (in shares)			250,000
Share available to be granted (in shares)	120,327
2018 Plan | Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards granted (in shares)	55,320	38,170

Stock Based Compensation (Stock

Stock Based Compensation (Stock Options Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)			0	0
Aggregate intrinsic value, stock options outstanding	$ 3,900		$ 3,900
Aggregate intrinsic value, stock options exercisable	3,900		$ 3,900
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of options (in years)			ten years
Vesting period (in years)			3 years
Unrecognized compensation costs	0		$ 0
Share-based compensation expense	$ 0	$ 11	$ 6	$ 33
Stock Options | Tranche 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			33.33%
Stock Options | Tranche 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			33.33%
Stock Options | Tranche 3
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage			33.33%

Stock Based Compensation (Summa

Stock Based Compensation (Summary of Stock Option Activity) (Details) - $ / shares	9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Shares
Options outstanding, beginning of year (in shares)	345,218
Exercised (in shares)	(23,800)	(10,000)
Forfeited (in shares)	(1,500)
Options outstanding, end of year (in shares)	319,918		345,218
Options Exercisable (in shares)	319,918
Weighted Average Exercise Price
Options outstanding, beginning of year (in dollars per share)	$ 16.83
Exercised (in dollars per share)	10.19
Forfeited (in dollars per share)	10
Options outstanding, end of year (in dollars per share)	17.36		$ 16.83
Options exercisable (in dollars per share)	$ 17.36
Weighted Average Remaining Contractual Term
Options outstanding (in years)	3 years 7 months 6 days		4 years 1 month 6 days
Options exercisable (in years)	3 years 7 months 6 days

Stock Based Compensation (Restr

Stock Based Compensation (Restricted Stock Awards - Changes in Nonvested Shares) (Details) - Restricted Stock Awards	9 Months Ended
	Sep. 30, 2021$ / sharesshares
Shares
Beginning balance, nonvested (in shares) | shares	93,270
Granted (in shares) | shares	55,320
Vested (in shares) | shares	(22,220)
Forfeited (in shares) | shares	(8,000)
Ending balance, nonvested (in shares) | shares	118,370
Weighted Average Grant-Date Fair Value
Beginning balance, nonvested (in dollars per share) | $ / shares	$ 24.75
Granted (in dollars per share) | $ / shares	22.68
Vested (in dollars per share) | $ / shares	25.54
Forfeited (in dollars per share) | $ / shares	25.22
Ending balance, nonvested (in dollars per share) | $ / shares	$ 23.60

Stock Based Compensation (Res_2

Stock Based Compensation (Restricted Stock Awards Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock redeemed to cover payroll taxes due at time of vesting			$ 137	$ 64
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs	$ 1,500		$ 1,500
Weighted-average recognition period for unrecognized compensation costs (in years)			2 years
Fair value of shares vested during period			$ 568
Share-based compensation expense	$ 203	$ 223	563	620
Restricted stock redeemed to cover payroll taxes due at time of vesting			$ 137	$ 64

Off- Balance Sheet Activities_2

Off- Balance Sheet Activities (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet risk, allowance	$ 318	$ 490
Commitment to make loans, maximum term (in days)	90 days
Commitments to make loans
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet exposure, fixed rates	$ 9,087	18,269
Off-balance sheet exposure, variable rates	6,600	17,058
Unused lines of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet exposure, fixed rates	33,383	28,898
Off-balance sheet exposure, variable rates	397,716	385,307
Unused standby letters of credit and commercial letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance sheet exposure, fixed rates	3,353	2,340
Off-balance sheet exposure, variable rates	$ 0	$ 1,992
Minimum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed rate loan commitments, interest rate	3.50%
Fixed rate loan commitments, maturity (in years)	1 year
Maximum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed rate loan commitments, interest rate	5.00%
Fixed rate loan commitments, maturity (in years)	20 years

Regulatory Capital Matters (Det

Regulatory Capital Matters (Details) $ in Thousands	Sep. 30, 2021USD ($)	Dec. 31, 2020USD ($)
Common equity tier 1 to risk-weighted assets:
Actual capital, amount	$ 167,229	$ 144,938
Actual capital, ratio	0.0982	0.0930
Required capital adequacy, amount	$ 76,616	$ 70,141
Required capital adequacy, ratio	4.50%	4.50%
Required capital adequacy with capital conservation buffer, amount	$ 119,181	$ 109,108
Required capital adequacy with capital conservation buffer, ratio	7.00%	7.00%
Tier 1 capital to risk-weighted assets:
Actual capital, amount	$ 190,602	$ 168,310
Actual capital, ratio	0.1119	0.1080
Required capital adequacy, amount	$ 102,155	$ 93,521
Required capital adequacy, ratio	0.0600	0.0600
Required capital adequacy with capital conservation buffer, amount	$ 144,719	$ 132,488
Required capital adequacy, ratio	8.50%	8.50%
Total capital to risk-weighted assets:
Actual capital, amount	$ 241,562	$ 232,386
Actual capital, ratio	0.1419	0.1491
Required capital adequacy, amount	$ 136,206	$ 124,695
Required capital adequacy, ratio	0.0800	0.0800
Required capital adequacy with capital conservation buffer, amount	$ 178,771	$ 163,662
Required capital adequacy, ratio	10.50%	10.50%
Tier 1 capital to average assets (leverage ratio):
Actual capital, amount	$ 190,602	$ 168,310
Actual capital, ratio	0.0768	0.0693
Required capital adequacy, amount	$ 99,227	$ 97,200
Required capital adequacy, ratio	0.0400	0.0400
Required capital adequacy with capital conservation buffer, amount	$ 99,227	$ 97,200
Required capital adequacy with capital conservation buffer, ratio	4.00%	4.00%
Capital conservation buffer, percentage	2.50%	2.50%
Amount available for dividend payment without regulatory approval	$ 56,300
Bank
Common equity tier 1 to risk-weighted assets:
Actual capital, amount	$ 213,794	$ 185,655
Actual capital, ratio	0.1255	0.1194
Required capital adequacy, amount	$ 76,644	$ 69,950
Required capital adequacy, ratio	4.50%	4.50%
Required capital adequacy with capital conservation buffer, amount	$ 119,224	$ 108,812
Required capital adequacy with capital conservation buffer, ratio	7.00%	7.00%
Prompt corrective action provisions, amount	$ 110,708	$ 101,040
Prompt corrective action provisions, ratio	6.50%	6.50%
Tier 1 capital to risk-weighted assets:
Actual capital, amount	$ 213,794	$ 185,655
Actual capital, ratio	0.1255	0.1194
Required capital adequacy, amount	$ 102,192	$ 93,267
Required capital adequacy, ratio	0.0600	0.0600
Required capital adequacy with capital conservation buffer, amount	$ 144,772	$ 132,129
Required capital adequacy, ratio	8.50%	8.50%
Prompt corrective action provisions, amount	$ 136,256	$ 124,356
Prompt corrective action provisions, ratio	0.0800	0.0800
Total capital to risk-weighted assets:
Actual capital, amount	$ 235,093	$ 205,127
Actual capital, ratio	0.1380	0.1320
Required capital adequacy, amount	$ 136,256	$ 124,356
Required capital adequacy, ratio	0.0800	0.0800
Required capital adequacy with capital conservation buffer, amount	$ 178,836	$ 163,218
Required capital adequacy, ratio	10.50%	10.50%
Prompt corrective action provisions, amount	$ 170,320	$ 155,446
Prompt corrective action provisions, ratio	0.1000	0.1000
Tier 1 capital to average assets (leverage ratio):
Actual capital, amount	$ 213,794	$ 185,655
Actual capital, ratio	0.0864	0.0767
Required capital adequacy, amount	$ 98,954	$ 96,809
Required capital adequacy, ratio	0.0400	0.0400
Required capital adequacy with capital conservation buffer, amount	$ 98,954	$ 96,809
Required capital adequacy with capital conservation buffer, ratio	4.00%	4.00%
Prompt corrective action provisions, amount	$ 123,692	$ 121,011
Prompt corrective action provisions, ratio	0.0500	0.0500

Fair Value (Additional Informat

Fair Value (Additional Information) (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of nonaccrual loans held for investment	$ 100,000		$ 100,000		$ 105,000
Fair value of loans 90 days past due	100,000		100,000		109,000
Ending allowance for loan losses	21,731,000	$ 21,254,000	21,731,000	$ 21,254,000	22,297,000	$ 23,144,000	$ 17,063,000	$ 12,674,000
Chargeoffs related to impaired loans to loans at fair value	224,000	$ 79,000	182,000	$ 1,754,000
Write downs recorded in other real estate owned			0		0
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ending allowance for loan losses	$ 130,000		130,000		95,000
Chargeoffs related to impaired loans to loans at fair value			$ 242,000		$ 315,000
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Additional adjustment percentage	0.05%		0.05%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Additional adjustment percentage	0.75%		0.75%

Fair Value (Fair Value Measurem

Fair Value (Fair Value Measurements of Assets and Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financial assets:
Securities available-for-sale	$ 389,528	$ 302,732
Recurring
Financial assets:
Securities available-for-sale	389,528	302,732
Loans held for sale	15,351	43,482
Total assets at fair value	422,446	369,006
Total liabilities at fair value	6,935	12,938
Recurring | Residential real estate
Financial assets:
Loans measured at fair value	9,764	8,037
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
Loans held for sale	0	0
Total assets at fair value	0	0
Total liabilities at fair value	0	0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential real estate
Financial assets:
Loans measured at fair value	0	0
Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	388,395	301,268
Loans held for sale	15,351	43,482
Total assets at fair value	411,549	359,505
Total liabilities at fair value	6,935	12,938
Recurring | Significant Other Observable Inputs (Level 2) | Residential real estate
Financial assets:
Loans measured at fair value	0	0
Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	1,133	1,464
Loans held for sale	0	0
Total assets at fair value	10,897	9,501
Total liabilities at fair value	0	0
Recurring | Significant Unobservable Inputs (Level 3) | Residential real estate
Financial assets:
Loans measured at fair value	9,764	8,037
U.S. government sponsored entities & agencies
Financial assets:
Securities available-for-sale	24,036	26,358
U.S. government sponsored entities & agencies | Recurring
Financial assets:
Securities available-for-sale	24,036	26,358
U.S. government sponsored entities & agencies | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
U.S. government sponsored entities & agencies | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	24,036	26,358
U.S. government sponsored entities & agencies | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0	0
State and political subdivision
Financial assets:
Securities available-for-sale	146,695	132,723
State and political subdivision | Recurring
Financial assets:
Securities available-for-sale	146,695	132,723
State and political subdivision | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
State and political subdivision | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	145,562	131,259
State and political subdivision | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	1,133	1,464
Mortgage-backed securities: residential
Financial assets:
Securities available-for-sale	20,086	26,081
Mortgage-backed securities: residential | Recurring
Financial assets:
Securities available-for-sale	20,086	26,081
Mortgage-backed securities: residential | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
Mortgage-backed securities: residential | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	20,086	26,081
Mortgage-backed securities: residential | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0	0
Mortgage-backed securities: commercial
Financial assets:
Securities available-for-sale	23,540	11,918
Mortgage-backed securities: commercial | Recurring
Financial assets:
Securities available-for-sale	23,540	11,918
Mortgage-backed securities: commercial | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
Mortgage-backed securities: commercial | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	23,540	11,918
Mortgage-backed securities: commercial | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0	0
Collateralized mortgage obligations: residential
Financial assets:
Securities available-for-sale	9,871	13,446
Collateralized mortgage obligations: residential | Recurring
Financial assets:
Securities available-for-sale	9,871	13,446
Collateralized mortgage obligations: residential | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
Collateralized mortgage obligations: residential | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	9,871	13,446
Collateralized mortgage obligations: residential | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0	0
Collateralized mortgage obligations: commercial
Financial assets:
Securities available-for-sale	52,738	58,512
Collateralized mortgage obligations: commercial | Recurring
Financial assets:
Securities available-for-sale	52,738	58,512
Collateralized mortgage obligations: commercial | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
Collateralized mortgage obligations: commercial | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	52,738	58,512
Collateralized mortgage obligations: commercial | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0	0
U.S. Treasury
Financial assets:
Securities available-for-sale	64,898
U.S. Treasury | Recurring
Financial assets:
Securities available-for-sale	64,898
U.S. Treasury | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0
U.S. Treasury | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	64,898
U.S. Treasury | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0
SBA
Financial assets:
Securities available-for-sale	15,108	17,593
SBA | Recurring
Financial assets:
Securities available-for-sale	15,108	17,593
SBA | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
SBA | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	15,108	17,593
SBA | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0	0
Asset backed securities
Financial assets:
Securities available-for-sale	9,858	10,072
Asset backed securities | Recurring
Financial assets:
Securities available-for-sale	9,858	10,072
Asset backed securities | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
Asset backed securities | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	9,858	10,072
Asset backed securities | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0	0
Corporate bonds
Financial assets:
Securities available-for-sale	22,698	6,029
Corporate bonds | Recurring
Financial assets:
Securities available-for-sale	22,698	6,029
Corporate bonds | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Securities available-for-sale	0	0
Corporate bonds | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Securities available-for-sale	22,698	6,029
Corporate bonds | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Securities available-for-sale	0	0
Customer-initiated derivatives | Recurring
Financial assets:
Derivative asset	6,906	12,515
Derivative liabilities	6,906	12,515
Customer-initiated derivatives | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Derivative asset	0	0
Derivative liabilities	0	0
Customer-initiated derivatives | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Derivative asset	6,906	12,515
Derivative liabilities	6,906	12,515
Customer-initiated derivatives | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Derivative asset	0	0
Derivative liabilities	0	0
Forward contracts related to mortgage loans to be delivered for sale | Recurring
Financial assets:
Derivative asset	227	46
Derivative liabilities	21	423
Forward contracts related to mortgage loans to be delivered for sale | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Derivative asset	0	0
Derivative liabilities	0	0
Forward contracts related to mortgage loans to be delivered for sale | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Derivative asset	227	46
Derivative liabilities	21	423
Forward contracts related to mortgage loans to be delivered for sale | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Derivative asset	0	0
Derivative liabilities	0	0
Interest rate lock commitments | Recurring
Financial assets:
Derivative asset	670	2,194
Derivative liabilities	8
Interest rate lock commitments | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Derivative asset	0	0
Derivative liabilities	0
Interest rate lock commitments | Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
Derivative asset	670	2,194
Derivative liabilities	8
Interest rate lock commitments | Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
Derivative asset	0	$ 0
Derivative liabilities	$ 0

Fair Value (Level 3 Assets Roll

Fair Value (Level 3 Assets Rollforward) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
Beginning balance	$ 11,059	$ 4,056	$ 8,037	$ 4,063
Transfers from loans held for sale	0	1,468	4,656	2,284
Gains (losses):
Recorded in "Mortgage banking activities"	(43)	65	(397)	62
Repayments	(1,252)	(509)	(2,532)	(1,329)
Ending balance	$ 9,764	$ 5,080	$ 9,764	$ 5,080

Fair Value (Contractual Obligat

Fair Value (Contractual Obligations (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Aggregate fair value	$ 15,351	$ 43,482
Contractual balance	14,835	41,808
Unrealized gain	$ 516	$ 1,674

Fair Value (Total Amount of Gai

Fair Value (Total Amount of Gains (Losses) from Changes in Fair Value of Loans Held For Sale) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Change in fair value	$ 194	$ 556	$ (1,158)	$ 1,201

Fair Value (Assets Measured at

Fair Value (Assets Measured at Fair Value on a Non-Recurring Basis) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights	$ 7,200	$ 4,000
Non-recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights	7,205	3,981
Carrying Value | Non-recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights	7,205	3,981
Total assets at fair value	7,995	5,251
Estimate of Fair Value Measurement | Non-recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights	7,205	3,981
Total assets at fair value	7,995	5,251
Residential real estate | Carrying Value | Non-recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	488
Residential real estate | Estimate of Fair Value Measurement | Non-recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	488
Commercial and industrial | Carrying Value | Non-recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	302	1,270
Commercial and industrial | Estimate of Fair Value Measurement | Non-recurring | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 302	$ 1,270

Fair Value (Quantitative Inform

Fair Value (Quantitative Information About Significant Unobservable Inputs for Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	$ 10,601	$ 18,259
Mortgage servicing rights	7,200	4,000
Non-recurring | Significant Unobservable Inputs (Level 3)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	790	1,270
Mortgage servicing rights	$ 7,205	$ 3,981
Minimum | Non-recurring | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Appraisals
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input percentage	5.00%	10.00%
Maximum | Non-recurring | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Appraisals
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input percentage	100.00%	90.00%
Prepayment speed | Non-recurring | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Cash Flow
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input percentage	6.83%	8.71%
Prepayment speed | Minimum | Valuation Technique, Discounted Cash Flow
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input percentage	6.12%	8.44%
Prepayment speed | Maximum | Valuation Technique, Discounted Cash Flow
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input percentage	8.25%	10.41%
Discount rate | Valuation Technique, Discounted Cash Flow
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input percentage	8.00%	7.75%
Discount rate | Non-recurring | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Cash Flow
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights, measurement input percentage	8.00%	7.75%

Fair Value (Fair Value Measur_2

Fair Value (Fair Value Measurement of Assets and Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Carrying Value
Financial assets:
Cash and cash equivalents	$ 293,824	$ 264,071
Other investments	14,398	14,398
Loans measured at fair value	1,697,986	1,701,240
Accrued interest receivable	7,779	7,511
Financial liabilities:
Deposits	2,066,992	1,963,312
Borrowings	182,058	185,684
Subordinated notes	29,668	44,592
Accrued interest payable	1,079	1,081
Estimate of Fair Value Measurement
Financial assets:
Cash and cash equivalents	293,824	264,071
Loans measured at fair value	1,728,396	1,740,093
Accrued interest receivable	7,779	7,511
Financial liabilities:
Deposits	2,099,195	2,022,399
Borrowings	186,018	192,546
Subordinated notes	31,500	45,902
Accrued interest payable	1,079	1,081
Estimate of Fair Value Measurement | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Cash and cash equivalents	30,810	25,245
Loans measured at fair value	0	0
Accrued interest receivable	0	0
Financial liabilities:
Deposits	0	0
Borrowings	0	0
Subordinated notes	0	0
Accrued interest payable	0	0
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2)
Financial assets:
Cash and cash equivalents	263,014	238,826
Loans measured at fair value	0	0
Accrued interest receivable	2,696	1,460
Financial liabilities:
Deposits	2,099,195	2,022,399
Borrowings	186,018	192,546
Subordinated notes	31,500	45,902
Accrued interest payable	1,079	1,081
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	0	0
Loans measured at fair value	1,728,396	1,740,093
Accrued interest receivable	5,083	6,051
Financial liabilities:
Deposits	0	0
Borrowings	0	0
Subordinated notes	0	0
Accrued interest payable	$ 0	$ 0

Derivatives (Notional Amount an

Derivatives (Notional Amount and Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Other Assets
Notional Amount
Derivative asset	$ 246,687	$ 237,745
Fair Value
Derivative asset	7,803	14,755
Other Liabilities
Notional Amount
Derivative liability	169,836	228,922
Fair Value
Derivative liability	6,935	12,938
Customer-initiated derivatives
Fair Value
Derivative asset	6,906	12,515
Derivative liability	6,906	12,515
Customer-initiated derivatives | Designated as Hedging Instrument | Other Assets
Notional Amount
Derivative asset	151,095	136,023
Fair Value
Derivative asset	6,906	12,515
Customer-initiated derivatives | Designated as Hedging Instrument | Other Liabilities
Notional Amount
Derivative liability	151,095	136,023
Fair Value
Derivative liability	6,906	12,515
Forward contracts related to mortgage loans to be delivered for sale | Not Designated as Hedging Instrument | Other Assets
Notional Amount
Derivative asset	38,721	10,191
Fair Value
Derivative asset	227	46
Forward contracts related to mortgage loans to be delivered for sale | Not Designated as Hedging Instrument | Other Liabilities
Notional Amount
Derivative liability	15,645	92,899
Fair Value
Derivative liability	21	423
Interest rate lock commitments | Not Designated as Hedging Instrument | Other Assets
Notional Amount
Derivative asset	56,871	91,531
Fair Value
Derivative asset	670	2,194
Interest rate lock commitments | Not Designated as Hedging Instrument | Other Liabilities
Notional Amount
Derivative liability	3,096	0
Fair Value
Derivative liability	$ 8	$ 0

Derivatives (Gains (Losses) Rel

Derivatives (Gains (Losses) Related to Derivative Instruments) (Details) - Mortgage banking activities - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Total loss recognized in income	$ 121	$ (816)	$ (4)	$ (2,188)
Forward contracts related to mortgage loans to be delivered for sale
Derivative Instruments, Gain (Loss) [Line Items]
Total loss recognized in income	34	(1,207)	1,528	(3,996)
Interest rate lock commitments
Derivative Instruments, Gain (Loss) [Line Items]
Total loss recognized in income	$ 87	$ 391	$ (1,532)	$ 1,808

Derivatives (Financial Instrume

Derivatives (Financial Instruments Eligible for Offset) (Details) - Customer-initiated derivatives - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Offsetting derivative assets:
Gross amounts recognized	$ 6,906	$ 12,515
Gross amounts offset in the statements of financial condition	0	0
Net amounts presented in the statements of financial condition	6,906	12,515
Gross amounts not offset in the statements of financial position
Financial instruments	0	0
Collateral (received)/posted	0	0
Net amount	6,906	12,515
Offsetting derivative liabilities:
Gross amounts recognized	6,906	12,515
Gross amounts offset in the statements of financial condition	0	0
Net amounts presented in the statements of financial condition	6,906	12,515
Gross amounts not offset in the statements of financial position
Financial instruments	0	0
Collateral (received)/posted	10,383	15,383
Net amount	$ (3,477)	$ (2,868)

Parent Company Financial Stat_3

Parent Company Financial Statements (Balance Sheets - Parent Company) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents	$ 293,824		$ 264,071
Income tax benefit	4,041		3,686
Total assets	2,543,883		2,442,982
Liabilities
Subordinated notes	29,668		44,592
Total liabilities	2,309,949		2,227,655
Shareholders' equity	233,934	$ 225,409	215,327	$ 209,468	$ 180,259	$ 170,703
Total liabilities and shareholders' equity	2,543,883		2,442,982
Parent Company
Assets
Cash and cash equivalents	8,220		25,779
Investment in banking subsidiary	257,126		232,671
Investment in captive insurance subsidiary	0		1,625
Income tax benefit	78		355
Other assets	23		63
Total assets	265,447		260,493
Liabilities
Subordinated notes	29,668		44,592
Accrued expenses and other liabilities	1,845		574
Total liabilities	31,513		45,166
Shareholders' equity	233,934		215,327
Total liabilities and shareholders' equity	$ 265,447		$ 260,493

Parent Company Financial Stat_4

Parent Company Financial Statements (Statements of Income and Comprehensive Income - Parent Company) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Expenses
Interest on borrowed funds	$ 468	$ 693	$ 1,409	$ 1,866
Interest on subordinated notes	374	632	1,470	1,903
Income tax (benefit) expense	(2,291)	(1,117)	(6,198)	(2,109)
Net income	9,465	5,209	25,403	12,040
Other comprehensive income (loss)	(216)	783	(3,327)	4,451
Total comprehensive income, net of tax	9,249	5,992	22,076	16,491
Parent Company
Income
Dividend income from bank subsidiary	0	5,000	0	41,500
Dividend income from captive subsidiary	0	0	1,629	0
Total income	0	5,000	1,629	41,500
Expenses
Interest on borrowed funds	0	11	0	33
Interest on subordinated notes	373	632	1,469	1,903
Other expenses	363	302	895	1,017
Total expenses	736	945	2,364	2,953
Income (loss) before income taxes and equity in undistributed net earnings of subsidiaries	(736)	4,055	(735)	38,547
Income tax (benefit) expense	132	228	342	383
Equity in (overdistributed) undistributed earnings of subsidiaries	10,069	926	25,796	(26,890)
Net income	9,465	5,209	25,403	12,040
Other comprehensive income (loss)	(216)	783	(3,327)	4,451
Total comprehensive income, net of tax	$ 9,249	$ 5,992	$ 22,076	$ 16,491

Parent Company Financial Stat_5

Parent Company Financial Statements (Statements of Cash Flows - Parent Company) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities
Net income	$ 9,465	$ 5,209	$ 25,403	$ 12,040
Adjustments to reconcile net income to net cash provided by operating activities:
Stock based compensation expense			569	653
Net cash provided by (used in) operating activities			44,411	(39,473)
Cash flows from investing activities
Cash used in acquisitions			0	(29,464)
Net cash used in investing activities			(95,752)	(442,162)
Cash flows from financing activities
Preferred stock offering, net of issuance costs			0	23,370
Pay down of subordinated debt			(15,000)	0
Share buyback - redeemed stock			(1,364)	(620)
Common stock dividends paid			(1,296)	(1,082)
Preferred stock dividends paid			(1,406)	0
Proceeds from exercised stock options			243	95
Net cash provided by (used in) financing activities			81,094	554,191
Net change in cash and cash equivalents			29,753	72,556
Beginning cash and cash equivalents			264,071	103,930
Ending cash and cash equivalents	293,824	176,486	293,824	176,486
Parent Company
Cash flows from operating activities
Net income	9,465	5,209	25,403	12,040
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in over (under) distributed earnings of subsidiaries	(10,069)	(926)	(25,796)	26,890
Stock based compensation expense			71	72
Net change in other assets, net			317	420
Net change in other liabilities, net			1,269	654
Net cash provided by (used in) operating activities			1,264	40,076
Cash flows from investing activities
Cash used in acquisitions			0	(67,944)
Net cash used in investing activities			0	(67,944)
Cash flows from financing activities
Preferred stock offering, net of issuance costs			0	23,370
Pay down of subordinated debt			(15,000)	0
Share buyback - redeemed stock			(1,364)	(620)
Common stock dividends paid			(1,296)	(1,082)
Preferred stock dividends paid			(1,406)	0
Proceeds from exercised stock options			243	95
Net cash provided by (used in) financing activities			(18,823)	21,763
Net change in cash and cash equivalents			(17,559)	(6,105)
Beginning cash and cash equivalents			25,779	35,210
Ending cash and cash equivalents	$ 8,220	$ 29,105	$ 8,220	$ 29,105

Earnings Per Common Share (Calc

Earnings Per Common Share (Calculation of Basic and Diluted Earnings Per Share - Current Period) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net income	$ 9,465	$ 5,209	$ 25,403	$ 12,040
Preferred stock dividends	468	0	1,406	0
Net income available to common shareholders - diluted	8,997	5,209	23,997	12,040
Net income available to common shareholders	8,997	5,209	23,997	12,040
Net income allocated to participating securities - diluted	138	40	331	140
Net income allocated to participating securities - basic	138	40	331	140
Net income allocated to common shareholders- diluted	8,859	5,169	23,666	11,900
Net income allocated to common shareholders- basic	$ 8,859	$ 5,169	$ 23,666	$ 11,900
Weighted average common shares outstanding - basic (in shares)	7,519	7,675	7,526	7,640
Effect of dilutive securities:
Weighted average common shares outstanding - diluted (in shares)	7,638	7,712	7,631	7,701
EPS available to common shareholders
Basic earnings per common share (in dollars per share)	$ 1.19	$ 0.68	$ 3.15	$ 1.56
Diluted earnings per common share (in dollars per share)	$ 1.16	$ 0.67	$ 3.10	$ 1.55
Earnings per share calculation under two-class method
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Weighted average common shares - issued (in shares)	7,638	7,734	7,633	7,730
Average unvested restricted share awards (in shares)	(119)	(59)	(107)	(90)
Weighted average common shares outstanding - basic (in shares)	7,519	7,675	7,526	7,640
Effect of dilutive securities:
Weighted average common stock equivalents (in shares)	119	37	105	61
Weighted average common shares outstanding - diluted (in shares)	7,638	7,712	7,631	7,701

Earnings Per Common Share (Addi

Earnings Per Common Share (Additional Information) (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares excluded from diluted earnings per share calculation (in shares)	0	214,668	0	117,334

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Nov. 03, 2021	Aug. 10, 2020	Sep. 30, 2021	Sep. 30, 2021
Subsequent Event [Line Items]
Preferred stock, interest rate			7.50%	7.50%
Series B Preferred Stock
Subsequent Event [Line Items]
Preferred stock, interest rate		7.50%
Subsequent Event | Series B Preferred Stock
Subsequent Event [Line Items]
Preferred stock, interest rate	7.50%
Subsequent Event | Level One Bancorp Inc. | First Merchants Corporation
Subsequent Event [Line Items]
Shares issued per each acquiree share (in shares)	0.7167
Cash paid per each acquiree share (in dollars per share)	$ 10.17