1st Source (SRCE) 10-Q 18 Apr 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 12, 2019
Document and Entity Information
Entity Registrant Name	1ST SOURCE CORP
Entity Central Index Key	0000034782
Document Type	10-Q
Entity Emerging Growth Company	false
Entity Small Business	false
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		25,667,953
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

CONSOLIDATED STATEMENTS OF FINA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Cash and due from banks	$ 64,619	$ 94,907
Federal funds sold and interest bearing deposits with other banks	3,062	4,172
Investment securities available-for-sale	1,002,809	990,129
Other investments	28,404	28,404
Mortgages held for sale	9,210	11,290
Loans and leases - net of unearned discount
Loans and leases	4,926,187	4,835,464
Reserve for loan and lease losses	(101,852)	(100,469)
Net loans and leases	4,824,335	4,734,995
Equipment owned under operating leases, net	131,594	134,440
Net premises and equipment	51,357	52,139
Goodwill and intangible assets	83,992	83,998
Accrued income and other assets	179,704	159,271
Total assets	6,379,086	6,293,745
Deposits:
Noninterest-bearing demand	1,146,647	1,217,120
Interest-bearing deposits:
Interest-bearing demand	1,560,840	1,614,959
Savings	851,564	822,477
Time	1,565,040	1,467,766
Total interest-bearing deposits	3,977,444	3,905,202
Total deposits	5,124,091	5,122,322
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase	149,172	113,627
Other short-term borrowings	106,216	85,717
Total short-term borrowings	255,388	199,344
Long-term debt and mandatorily redeemable securities	71,439	71,123
Subordinated notes	58,764	58,764
Accrued expenses and other liabilities	88,303	78,602
Total liabilities	5,597,985	5,530,155
SHAREHOLDERS' EQUITY
Preferred stock; no par value Authorized 10,000,000 shares; none issued or outstanding	0	0
Common stock; no par value Authorized 40,000,000 shares; issued 28,205,674 at March 31, 2019 and December 31, 2018	436,538	436,538
Retained earnings	414,428	398,980
Cost of common stock in treasury (2,537,741 shares at March 31, 2019 and 2,421,946 shares at December 31, 2018)	(69,136)	(62,760)
Accumulated other comprehensive loss	(3,408)	(10,676)
Total shareholders' equity	778,422	762,082
Noncontrolling interests	2,679	1,508
Total equity	781,101	763,590
Total liabilities and equity	6,379,086	6,293,745
Commercial and agricultural
Loans and leases - net of unearned discount
Loans and leases	1,146,031	1,073,205
Reserve for loan and lease losses	(18,307)	(17,063)
Auto and light truck
Loans and leases - net of unearned discount
Loans and leases	554,078	559,987
Reserve for loan and lease losses	(14,259)	(14,689)
Medium and heavy duty truck
Loans and leases - net of unearned discount
Loans and leases	285,631	283,544
Reserve for loan and lease losses	(4,409)	(4,303)
Aircraft
Loans and leases - net of unearned discount
Loans and leases	830,437	803,111
Reserve for loan and lease losses	(33,440)	(33,047)
Construction equipment
Loans and leases - net of unearned discount
Loans and leases	641,035	645,239
Reserve for loan and lease losses	(10,883)	(10,922)
Commercial real estate
Loans and leases - net of unearned discount
Loans and leases	818,459	809,886
Reserve for loan and lease losses	(15,834)	(15,705)
Residential real estate and home equity
Loans and leases - net of unearned discount
Loans and leases	514,719	523,855
Reserve for loan and lease losses	(3,386)	(3,425)
Consumer
Loans and leases - net of unearned discount
Loans and leases	135,797	136,637
Reserve for loan and lease losses	$ (1,334)	$ (1,315)

CONSOLIDATED STATEMENTS OF FI_2

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock; no par value (in dollars per share)	$ 0	$ 0
Preferred stock, Authorized shares	10,000,000	10,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock; no par value (in dollars per share)	$ 0	$ 0
Common stock, Authorized shares	40,000,000	40,000,000
Common stock, issued shares	28,205,674	28,205,674
Cost of common stock in treasury, shares	2,537,741	2,421,946

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Interest income:
Loans and leases	$ 62,683,000	$ 53,691,000
Investment securities, taxable	5,515,000	4,608,000
Investment securities, tax-exempt	385,000	531,000
Other	438,000	408,000
Total interest income	69,021,000	59,238,000
Interest expense:
Deposits	11,470,000	6,562,000
Short-term borrowings	931,000	776,000
Subordinated notes	928,000	883,000
Long-term debt and mandatorily redeemable securities	744,000	485,000
Total interest expense	14,073,000	8,706,000
Net interest income	54,948,000	50,532,000
Provision for loan and lease losses	4,918,000	3,786,000
Net interest income after provision for loan and lease losses	50,030,000	46,746,000
Noninterest income:
Mortgage banking	936,000	884,000
Insurance commissions	2,174,000	1,958,000
Equipment rental	7,982,000	7,755,000
Losses on investment securities available-for-sale	0	(345,000)
Other	2,456,000	2,780,000
Total noninterest income	24,124,000	23,807,000
Noninterest expense:
Salaries and employee benefits	23,495,000	22,531,000
Net occupancy	2,772,000	2,866,000
Furniture and equipment	6,024,000	5,455,000
Depreciation - leased equipment	6,524,000	6,428,000
Professional fees	1,598,000	2,017,000
Supplies and communication	1,493,000	1,553,000
FDIC and other insurance	645,000	698,000
Business development and marketing	949,000	1,533,000
Loan and lease collection and repossession	1,361,000	951,000
Other	343,000	1,525,000
Total noninterest expense	45,204,000	45,557,000
Income before income taxes	28,950,000	24,996,000
Income tax expense	6,754,000	5,880,000
Net income	22,196,000	19,116,000
Net (income) loss attributable to noncontrolling interests	0	0
Net income available to common shareholders	$ 22,196,000	$ 19,116,000
Per common share:
Basic net income per common share (in dollars per share)	$ 0.86	$ 0.73
Diluted net income per common share (in dollars per share)	0.86	0.73
Cash dividends (in dollars per share)	$ 0.27	$ 0.22
Basic weighted average common shares outstanding (in shares)	25,759,186	25,950,386
Diluted weighted average common shares outstanding (in shares)	25,759,186	25,950,386
Trust and wealth advisory
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	$ 4,858,000	$ 5,188,000
Service charges on deposit accounts
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	2,498,000	2,484,000
Debit card
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	$ 3,220,000	$ 3,103,000

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 22,196	$ 19,116
Other comprehensive income (loss):
Unrealized appreciation (depreciation) of available-for-sale securities	9,573	(9,414)
Reclassification adjustment for realized losses included in net income	0	345
Income tax effect	(2,305)	2,184
Other comprehensive income (loss), net of tax	7,268	(6,885)
Comprehensive income	29,464	12,231
Comprehensive (income) loss attributable to noncontrolling interests	0	0
Comprehensive income available to common shareholders	$ 29,464	$ 12,231

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Retained Earnings	Cost of Common Stock in Treasury	Accumulated Other Comprehensive Income (Loss), Net	Total Shareholders' Equity	Noncontrolling Interests
Increase (Decrease) in Shareholders' Equity
Balance	$ 718,537	$ 436,538	$ 339,959	$ (54,628)	$ (3,332)	$ 718,537
Cumulative-effect adjustment at Dec. 31, 2017	0		718		(718)	0
Balance, adjusted at Dec. 31, 2017	718,537	436,538	340,677	(54,628)	(4,050)	718,537
Increase (Decrease) in Shareholders' Equity
Net income	19,116		19,116			19,116
Other comprehensive (loss) income	(6,885)				(6,885)	(6,885)
Issuance of 38,365 and 34,191 common shares under stock based compensation awards for the three months ended on March 31, 2019 and 2018, respectively	1,346		535	811		1,346
Cost of 154,160 and 15,784 shares of common stock acquired for treasury for the three months ended on March 31, 2019 and 2018, respectively	(785)			(785)		(785)
Common stock dividend ($0.27 and $0.22 per share for the three months ended on March 31, 2019 and 2018, respectively)	(5,720)		(5,720)			(5,720)
Balance	725,609	436,538	354,608	(54,602)	(10,935)	725,609
Balance	763,590	436,538	398,980	(62,760)	(10,676)	762,082	$ 1,508
Cumulative-effect adjustment at Dec. 31, 2018	(301)		(301)			(301)
Balance, adjusted at Dec. 31, 2018	763,289	436,538	398,679	(62,760)	(10,676)	761,781	1,508
Increase (Decrease) in Shareholders' Equity
Net income	22,196		22,196			22,196
Other comprehensive (loss) income	7,268				7,268	7,268
Issuance of 38,365 and 34,191 common shares under stock based compensation awards for the three months ended on March 31, 2019 and 2018, respectively	1,415		533	882		1,415
Cost of 154,160 and 15,784 shares of common stock acquired for treasury for the three months ended on March 31, 2019 and 2018, respectively	(7,258)			(7,258)		(7,258)
Common stock dividend ($0.27 and $0.22 per share for the three months ended on March 31, 2019 and 2018, respectively)	(6,980)		(6,980)			(6,980)
Issuance of noncontrolling interests	1,171					0	1,171
Balance	$ 781,101	$ 436,538	$ 414,428	$ (69,136)	$ (3,408)	$ 778,422	$ 2,679

CONSOLIDATED STATEMENTS OF SH_2

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]
Issuance of common shares under stock based compensation awards	38,365	34,191
Common stock acquired for treasury	154,160	15,784
Common stock dividend (in dollars per share)	$ 0.27	$ 0.22

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating activities:
Net income	$ 22,196	$ 19,116
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan and lease losses	4,918	3,786
Depreciation of premises and equipment	1,466	1,321
Depreciation of equipment owned and leased to others	6,524	6,428
Stock-based compensation	673	880
Amortization of investment securities premiums and accretion of discounts, net	824	764
Amortization of mortgage servicing rights	233	236
Deferred income taxes	444	(7,531)
Losses on investment securities available-for-sale	0	345
Originations of loans held for sale, net of principal collected	(19,966)	(17,032)
Proceeds from the sales of loans held for sale	22,534	21,960
Net gain on sale of loans held for sale	(488)	(431)
Net gain on sale of other real estate and repossessions	(167)	(6)
Net (gain) loss on sale of premises and equipment	(1,288)	2
Change in interest receivable	(2,696)	(1,806)
Change in interest payable	2,427	1,120
Change in other assets	1,808	4,825
Change in other liabilities	(7,814)	323
Other	598	(30)
Net change in operating activities	32,226	34,270
Investing activities:
Proceeds from sales of investment securities available-for-sale	0	11,739
Proceeds from maturities and paydowns of investment securities available-for-sale	28,840	47,265
Purchases of investment securities available-for-sale	(33,072)	(107,225)
Proceeds from liquidation of partnership investment	0	1,868
Net change in other investments	0	(1,312)
Loans sold or participated to others	2,862	14,310
Net change in loans and leases	(106,059)	(178,326)
Net change in equipment owned under operating leases	(3,678)	(10,976)
Purchases of premises and equipment	(2,821)	(1,566)
Proceeds from disposal of premises and equipment	3,426	17
Proceeds from sales of other real estate and repossessions	4,044	425
Net change in investing activities	(106,458)	(223,781)
Financing activities:
Net change in demand deposits and savings accounts	(95,505)	(81,827)
Net change in time deposits	97,274	110,422
Net change in short-term borrowings	56,044	141,369
Payments on long-term debt	(1,718)	(636)
Acquisition of treasury stock	(7,258)	(785)
Contributions from noncontrolling interests	1,171	0
Cash dividends paid on common stock	(7,174)	(5,913)
Net change in financing activities	42,834	162,630
Net change in cash and cash equivalents	(31,398)	(26,881)
Cash and cash equivalents, beginning of year	99,079	78,033
Cash and cash equivalents, end of period	67,681	51,152
Non-cash transactions:
Loans transferred to other real estate and repossessed assets	8,939	259
Common stock matching contribution to Employee Stock Ownership and Profit Sharing Plan	300	583
Right of use asset obtained in exchange for operating lease obligations	$ 1,058	$ 0

Accounting Policies

Accounting Policies	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Accounting Policies	Accounting Policies 1st Source Corporation is a bank holding company headquartered in South Bend, Indiana that provides, through its subsidiaries (collectively referred to as “1st Source” or “the Company”), a broad array of financial products and services. Basis of Presentation – The accompanying unaudited consolidated financial statements reflect all adjustments (all of which are normal and recurring in nature) which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position, the results of operations, changes in comprehensive income, changes in shareholders’ equity, and cash flows for the periods presented. These unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (SEC) and, therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been omitted. The Notes to the Consolidated Financial Statements appearing in 1st Source Corporation’s Annual Report on Form 10-K ( 2018 Annual Report), which include descriptions of significant accounting policies, should be read in conjunction with these interim financial statements. The Consolidated Statement of Financial Condition at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current period presentation. Use of Estimates in the Preparation of Financial Statements – Financial statements prepared in accordance with GAAP require the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates. Loans and Leases – Loans are stated at the principal amount outstanding, net of unamortized deferred loan origination fees and costs and net of unearned income. Interest income is accrued as earned based on unpaid principal balances. Origination fees and direct loan and lease origination costs are deferred, and the net amount amortized to interest income over the estimated life of the related loan or lease. Loan commitment fees are deferred and amortized into other income over the commitment period. Direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, net of unamortized deferred lease origination fees and costs and unearned income. Interest income on direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Effective January 1, 2019, as part of the new leasing standard, only those costs incurred as a direct result of closing a lease transaction can be capitalized. All existing deferrals will continue to be amortized over the estimated life of the lease while all new incremental direct costs will be expensed immediately. The accrual of interest on loans and leases is discontinued when a loan or lease becomes contractually delinquent for 90 days, or when an individual analysis of a borrower’s credit worthiness indicates a credit should be placed on nonperforming status, except for residential mortgage loans and consumer loans that are well secured and in the process of collection. Residential mortgage loans are placed on nonaccrual at the time the loan is placed in foreclosure. When interest accruals are discontinued, interest credited to income in the current year is reversed and interest accrued in the prior year is charged to the reserve for loan and lease losses. However, in some cases, the Company may elect to continue the accrual of interest when the net realizable value of collateral is sufficient to cover the principal and accrued interest. When a loan or lease is classified as nonaccrual and the future collectability of the recorded loan or lease balance is doubtful, collections on interest and principal are applied as a reduction to principal outstanding. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured, which is typically evidenced by a sustained repayment performance of at least six months . A loan or lease is considered impaired, based on current information and events, if it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan or lease agreement. Interest on impaired loans and leases, which are not classified as nonaccrual, is recognized on the accrual basis. The Company evaluates loans and leases exceeding $100,000 for impairment and establishes a specific reserve as a component of the reserve for loan and lease losses when it is probable all amounts due will not be collected pursuant to the contractual terms of the loan or lease and the recorded investment in the loan or lease exceeds its fair value. Loans and leases that have been modified and economic concessions have been granted to borrowers who have experienced financial difficulties are considered a troubled debt restructuring (TDR) and, by definition, are deemed an impaired loan. These concessions typically result from the Company’s loss mitigation activities and may include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months. When the Company modifies loans and leases in a TDR, it evaluates any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan or lease agreement, or uses the current fair value of the collateral, less selling costs for collateral dependent loans. If the Company determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through a reserve for loan and lease losses estimate or a charge-off to the reserve for loan and lease losses. In periods subsequent to modification, the Company evaluates all TDRs, including those that have payment defaults, for possible impairment and recognizes impairment through the reserve for loan and lease losses. Equipment Owned Under Operating Leases – As a lessor, the Company finances various types of construction equipment, medium and heavy duty trucks, automobiles and other equipment under leases classified as operating leases. The equipment underlying the operating leases is reported at cost, net of accumulated depreciation, in the Consolidated Statements of Financial Condition. These operating lease arrangements require the lessee to make a fixed monthly rental payment over a specified lease term generally ranging from three to seven years . Revenue consists of the contractual lease payments and is recognized on a straight-line basis over the lease term and reported as noninterest income. Leased assets are being depreciated on a straight-line method over the lease term to the estimate of the equipment’s fair market value at lease termination, also referred to as “residual” value. The depreciation of these operating lease assets is reported as Noninterest Expense on the Consolidated Statements of Income. For automobile leases, fair value is based upon published industry market guides. For other equipment leases, fair value may be based upon observable market prices, third-party valuations, or prices received on sales of similar assets at the end of the lease term. These residual values are reviewed annually to ensure the recorded amount does not exceed the fair market value at the lease termination. At the end of the lease, the operating lease asset is either purchased by the lessee or returned to the Company. The Company is responsible for the payment of personal property taxes which is reported as Other Expense on the Consolidated Statements of Income. The lessee is responsible for reimbursing the Company for personal property taxes which is reported as Other Income on the Consolidated Statements of Income. The Company excludes sales taxes and other similar taxes from being reported as lease revenue with an associated expense. Lease Commitments – The Company leases certain banking center locations, office space, land and billboards. In determining whether a contract contains a lease, the Company examines the contract to ensure an asset was specifically identified and that the Company has control of use over the asset. To determine whether a lease is classified as operating or finance, the Company performs an economic life test on all building leases with greater than a twenty year term. Further, the Company performs a fair value test to identify any leases that have a present value of future lease payments over the lease term that is greater than 90% of the fair value of the building. The Company only capitalizes leases with an initial lease liability equal to or over $2,000 . At lease inception, the Company determines the lease term by adding together the minimum lease term and all optional renewal periods that it is reasonably certain to renew. The Company determines this on each lease by considering all relevant contract-based, asset-based, market-based, and entity-based economic factors. Generally, the exercise of lease renewal options is at the Company’s sole discretion. The lease term is used to determine whether a lease is operating or finance and is used to calculate straight-line rent expense. Additionally, the depreciable life of leasehold improvements is limited by the expected lease term. Operating lease rentals are expensed on a straight-line basis over the life of the lease beginning on the date the Company takes possession of the property. Rent expense and variable lease costs are included in Net Occupancy Expense on the Company’s Consolidated Statements of Income. Included in variable lease costs are leases with rent escalations based on recent financial indices, such as the Consumer Price Index, where the Company estimates future rent increases and records the actual difference to variable costs. Certain leases require the Company to pay common area maintenance, real estate taxes, insurance and other operating expenses associated with the leases premises. These expenses are classified in Net Occupancy Expense, consistent with similar costs for owned locations. There are no residual value guarantees or restrictions or covenants imposed by leases. The Company accounts for lease and nonlease components together as a single lease component by class of underlying asset. Operating lease obligations with an initial term longer than 12 months are recorded with a right of use asset and a lease liability in the Consolidated Statements of Financial Condition. Operating lease obligations with an initial term of 12 months or less are expensed in the Consolidated Statements of Income on a straight-line basis over the lease term. The discount rate used in determining the lease liability and related right of use asset is based upon what would be obtained by the Company for similar loans as an incremental rate as of the date of origination or renewal. Revenue Recognition – The Company recognizes revenues as they are earned based on contractual terms, as transactions occur, or as services are provided and collectability is reasonably assured. The Company’s principal source of revenue is interest income from loans and leases and investment securities. The Company also earns noninterest income from various banking and financial services offered primarily through 1st Source Bank (Bank) and its subsidiaries. Interest Income – The largest source of revenue for the Company is interest income which is primarily recognized on an accrual basis according to nondiscretionary formulas in written contracts, such as loan and lease agreements or investment securities contracts. Noninterest Income – The Company earns noninterest income through a variety of financial and transaction services provided to corporate and consumer clients such as trust and wealth advisory, deposit account, debit card, mortgage banking, insurance, and equipment rental services. Revenue is recorded for noninterest income based on the contractual terms for the service or transaction performed. In certain circumstances, noninterest income is reported net of associated expenses.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2019
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Leases: In March 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-01 “Leases (Topic 842): Codification Improvements.” These amendments align the guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. The ASU also requires lessors within the scope of Topic 842, Financial Services-Depository Lending, to present all “principal payments received under leases” within investing activities on the Consolidated Statements of Cash Flows. Finally, the ASU exempts both lessees and lessors from having to provide certain interim disclosures in the fiscal year in which a company adopts the new leases standard. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early application is permitted. An entity should apply the amendments as of the date that it first applied Topic 842, using the same transition methodology in accordance with paragraph 842-10-65-1(c). The Company adopted Topic 842 on January 1, 2019 and applied the amendments in ASU 2019-01 as of the same date and it did not have a material impact on its accounting and disclosures. Intangibles - Internal-Use Software: In August 2018, the FASB issued ASU No. 2018-15 “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” These amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contact with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. The guidance is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted. The Company is assessing ASU 2018-15 and the impact on its accounting and disclosures. Disclosure Requirements for Fair Value Measurement: In August 2018, the FASB issued ASU No. 2018-13 “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” These amendments modify the disclosure requirements in Topic 820 as follows: Removals: the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. Modifications: for investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly; and the amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. Additions: the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The guidance is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should all be applied prospectively for only the most recent interim or annual period presented in the initial year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of ASU No. 2018-13 and delay adoption of the additional disclosures until their effective date. The Company is assessing ASU 2018-13 and the impact on its disclosures. Premium Amortization: In March 2017, the FASB issued ASU No. 2017-08 “ Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities.” These amendments shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. If an entity early adopts in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments should be applied on a modified retrospective basis, with a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted ASU 2017-08 on January 1, 2019 and recognized a cumulative-effect adjustment to retained earnings of $0.30 million . Simplifying the Test for Goodwill Impairment: In January 2017, the FASB issued ASU No. 2017-04 “ Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment.” These amendments eliminate Step 2 from the goodwill impairment test. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. ASU 2017-04 should be adopted on a prospective basis. The Company has assessed ASU 2017-04 and does not expect it to have a material impact on its accounting and disclosures. Measurement of Credit Losses on Financial Instruments: In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments.” The provisions of ASU 2016-13 were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other commitments to extend credit held by a reporting entity at each reporting date. ASU 2016-13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 eliminate the probable incurred loss recognition in current GAAP and reflect an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the financial assets. For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company has a cross-functional team working through an implementation plan which includes assessment and documentation of processes, internal controls and data as well as model development. The Company is also in the process of implementing a third-party software solution to assist in the application of the new standard. The impact of adopting ASU 2016-13 cannot be reasonably estimated at this point.

Investment Securities

Investment Securities	3 Months Ended
	Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Investment Securities	Investment Securities Available-For-Sale The following table shows investment securities available-for-sale. (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2019 U.S. Treasury and Federal agencies securities $ 537,895 $ 737 $ (3,226 ) $ 535,406 U.S. States and political subdivisions securities 88,501 518 (263 ) 88,756 Mortgage-backed securities — Federal agencies 332,342 1,520 (3,921 ) 329,941 Corporate debt securities 47,860 312 (166 ) 48,006 Foreign government and other securities 700 — — 700 Total debt securities available-for-sale $ 1,007,298 $ 3,087 $ (7,576 ) $ 1,002,809 December 31, 2018 U.S. Treasury and Federal agencies securities $ 537,913 $ 196 $ (6,886 ) $ 531,223 U.S. States and political subdivisions securities 95,346 172 (936 ) 94,582 Mortgage-backed securities — Federal agencies 324,390 718 (6,875 ) 318,233 Corporate debt securities 45,843 — (451 ) 45,392 Foreign government and other securities 700 — (1 ) 699 Total debt securities available-for-sale $ 1,004,192 $ 1,086 $ (15,149 ) $ 990,129 At March 31, 2019 and December 31, 2018 , the residential mortgage-backed securities held by the Company consisted primarily of GNMA, FNMA and FHLMC pass-through certificates which are guaranteed by those respective agencies of the United States government (Government Sponsored Enterprise, GSEs). The following table shows the contractual maturities of investments in debt securities available-for-sale at March 31, 2019 . Expected maturities will differ from contractual maturities, because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 141,236 $ 140,922 Due after one year through five years 526,676 524,765 Due after five years through ten years 7,044 7,181 Due after ten years — — Mortgage-backed securities 332,342 329,941 Total debt securities available-for-sale $ 1,007,298 $ 1,002,809 The following table summarizes gross unrealized losses and fair value by investment category and age. At March 31, 2019 , the Company's available-for-sale securities portfolio consisted of 620 securities, 322 of which were in an unrealized loss position. Less than 12 Months 12 months or Longer Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses March 31, 2019 U.S. Treasury and Federal agencies securities $ — $ — $ 417,740 $ (3,226 ) $ 417,740 $ (3,226 ) U.S. States and political subdivisions securities 1,367 (1 ) 32,560 (262 ) 33,927 (263 ) Mortgage-backed securities - Federal agencies 26,788 (73 ) 192,836 (3,848 ) 219,624 (3,921 ) Corporate debt securities 4,962 — 18,007 (166 ) 22,969 (166 ) Foreign government and other securities 700 — — — 700 — Total debt securities available-for-sale $ 33,817 $ (74 ) $ 661,143 $ (7,502 ) $ 694,960 $ (7,576 ) December 31, 2018 U.S. Treasury and Federal agencies securities $ 55,491 $ (177 ) $ 424,269 $ (6,709 ) $ 479,760 $ (6,886 ) U.S. States and political subdivisions securities 21,059 (61 ) 45,365 (875 ) 66,424 (936 ) Mortgage-backed securities - Federal agencies 65,554 (511 ) 198,221 (6,364 ) 263,775 (6,875 ) Corporate debt securities 21,496 (143 ) 23,896 (308 ) 45,392 (451 ) Foreign government and other securities 699 (1 ) — — 699 (1 ) Total debt securities available-for-sale $ 164,299 $ (893 ) $ 691,751 $ (14,256 ) $ 856,050 $ (15,149 ) The initial indication of potential other-than-temporary-impairment (OTTI) for debt securities is a decline in fair value below amortized cost. Quarterly, the impaired securities are analyzed on a qualitative and quantitative basis in determining OTTI. Declines in the fair value of debt securities available-for-sale below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of impairment related to other factors is recognized in other comprehensive income. In estimating OTTI losses, the Company considers among other things, (i) the length of time and the extent to which fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) whether it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. At March 31, 2019 , the Company does not have the intent to sell any of the debt securities available-for-sale in the table above and believes that it is more likely than not, that it will not have to sell any such securities before an anticipated recovery of cost. Primarily the unrealized losses on debt securities are due to increases in market rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover on all debt securities as they approach their maturity date or re-pricing date or if market yields for such investments decline. The Company does not believe any of the securities are impaired due to reasons of credit quality. The following table shows the gross realized gains and losses from the available-for-sale debt securities portfolio. Realized gains and losses of all securities are computed using the specific identification cost basis. Three Months Ended (Dollars in thousands) 2019 2018 Gross realized gains $ — $ 2 Gross realized losses — (347 ) OTTI losses — — Net realized gains (losses) $ — $ (345 ) At March 31, 2019 and December 31, 2018 , investment securities available-for-sale with carrying values of $257.94 million and $242.31 million , respectively, were pledged as collateral for security repurchase agreements and for other purposes.

Loan and Lease Financings

Loan and Lease Financings	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
Loan and Lease Financings	Loan and Lease Financings The loan and lease portfolio includes direct financing leases, which are included in commercial and agricultural, auto and light truck, medium and heavy duty truck, aircraft, and construction equipment on the Consolidated Statements of Financial Condition. The following table shows the the components of the investment in direct finance leases at March 31, 2019 and December 31, 2018 . (Dollars in thousands) March 31, December 31, Direct finance leases: Minimum lease payments $ 249,069 $ 257,398 Estimated unguaranteed residual values 41 41 Less: Unearned income (45,420 ) (46,709 ) Net investment in lease financing $ 203,690 $ 210,730 To mitigate this risk of loss, the Company seeks to diversify both the type of equipment leased and the industries in which the lessees participate. In addition, a portion of our leases are terminal rental adjustment clause or “TRAC” leases where the lessee effectively guarantees the full residual value through a rental adjustment at the end of term or those where partial value is guaranteed (“split-TRAC”), which has a limited residual risk. Under a split-TRAC structure, the limited residual risk would be satisfied first by the net sale proceeds of the leased asset. The lessee’s at-risk portion, or top risk, is satisfied last and is subject to repayment as additional rent, if the TRAC amount is not satisfied by the net sale proceeds. The following table shows direct financing minimum lease payments receivable for the next five years 2019 through 2023 and thereafter. (Dollars in thousands) 2019 $ 39,791 2020 46,697 2021 39,067 2022 36,643 2023 31,450 Thereafter 55,421 Total $ 249,069 Interest income recognized from direct financing lease payments for the three months ended March 31, 2019 and 2018 was $2.78 million and $2.57 million , respectively. The Company evaluates loans and leases for credit quality at least annually but more frequently if certain circumstances occur (such as material new information which becomes available and indicates a potential change in credit risk). The Company uses two methods to assess credit risk: loan or lease credit quality grades and credit risk classifications. The purpose of the loan or lease credit quality grade is to document the degree of risk associated with individual credits as well as inform management of the degree of risk in the portfolio taken as a whole. Credit risk classifications are used to categorize loans by degree of risk and to designate individual or committee approval authorities for higher risk credits at the time of origination. Credit risk classifications include categories for: Acceptable, Marginal, Special Attention, Special Risk, Restricted by Policy, Regulated and Prohibited by Law. All loans and leases, except residential real estate and home equity loans and consumer loans, are assigned credit quality grades on a scale from 1 to 12 with grade 1 representing superior credit quality. The criteria used to assign grades to extensions of credit that exhibit potential problems or well-defined weaknesses are primarily based upon the degree of risk and the likelihood of orderly repayment, and their effect on the Company’s safety and soundness. Loans or leases graded 7 or weaker are considered “special attention” credits and, as such, relationships in excess of $100,000 are reviewed quarterly as part of management’s evaluation of the appropriateness of the reserve for loan and lease losses. Grade 7 credits are defined as “watch” and contain greater than average credit risk and are monitored to limit the exposure to increased risk; grade 8 credits are “special mention” and, following regulatory guidelines, are defined as having potential weaknesses that deserve management’s close attention. Credits that exhibit well-defined weaknesses and a distinct possibility of loss are considered “classified” and are graded 9 through 12 corresponding to the regulatory definitions of “substandard” (grades 9 and 10) and the more severe “doubtful” (grade 11) and “loss” (grade 12). The following table shows the credit quality grades of the recorded investment in loans and leases, segregated by class. Credit Quality Grades (Dollars in thousands) 1-6 7-12 Total March 31, 2019 Commercial and agricultural $ 1,117,440 $ 28,591 $ 1,146,031 Auto and light truck 534,407 19,671 554,078 Medium and heavy duty truck 284,208 1,423 285,631 Aircraft 802,373 28,064 830,437 Construction equipment 623,140 17,895 641,035 Commercial real estate 799,662 18,797 818,459 Total $ 4,161,230 $ 114,441 $ 4,275,671 December 31, 2018 Commercial and agricultural $ 1,043,019 $ 30,186 $ 1,073,205 Auto and light truck 528,174 31,813 559,987 Medium and heavy duty truck 281,834 1,710 283,544 Aircraft 768,442 34,669 803,111 Construction equipment 625,579 19,660 645,239 Commercial real estate 787,376 22,510 809,886 Total $ 4,034,424 $ 140,548 $ 4,174,972 For residential real estate and home equity and consumer loans, credit quality is based on the aging status of the loan and by payment activity. The following table shows the recorded investment in residential real estate and home equity and consumer loans by performing or nonperforming status. Nonperforming loans are those loans which are on nonaccrual status or are 90 days or more past due. (Dollars in thousands) Performing Nonperforming Total March 31, 2019 Residential real estate and home equity $ 512,927 $ 1,792 $ 514,719 Consumer 135,578 219 135,797 Total $ 648,505 $ 2,011 $ 650,516 December 31, 2018 Residential real estate and home equity $ 521,846 $ 2,009 $ 523,855 Consumer 136,423 214 136,637 Total $ 658,269 $ 2,223 $ 660,492 The following table shows the recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status. (Dollars in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due and Accruing Total Accruing Loans Nonaccrual Total Financing Receivables March 31, 2019 Commercial and agricultural $ 1,142,979 $ 84 $ — $ — $ 1,143,063 $ 2,968 $ 1,146,031 Auto and light truck 548,752 1,024 148 — 549,924 4,154 554,078 Medium and heavy duty truck 285,539 23 — — 285,562 69 285,631 Aircraft 818,494 9,106 1,585 — 829,185 1,252 830,437 Construction equipment 639,039 580 — — 639,619 1,416 641,035 Commercial real estate 816,251 277 — — 816,528 1,931 818,459 Residential real estate and home equity 511,627 819 481 151 513,078 1,641 514,719 Consumer 134,808 629 141 28 135,606 191 135,797 Total $ 4,897,489 $ 12,542 $ 2,355 $ 179 $ 4,912,565 $ 13,622 $ 4,926,187 December 31, 2018 Commercial and agricultural $ 1,070,530 $ 22 $ — $ — $ 1,070,552 $ 2,653 $ 1,073,205 Auto and light truck 544,022 3,154 1,437 — 548,613 11,374 559,987 Medium and heavy duty truck 283,284 154 — — 283,438 106 283,544 Aircraft 790,233 4,149 1,168 — 795,550 7,561 803,111 Construction equipment 641,270 1,643 — — 642,913 2,326 645,239 Commercial real estate 807,793 109 — — 807,902 1,984 809,886 Residential real estate and home equity 520,124 1,267 455 295 522,141 1,714 523,855 Consumer 135,591 682 150 73 136,496 141 136,637 Total $ 4,792,847 $ 11,180 $ 3,210 $ 368 $ 4,807,605 $ 27,859 $ 4,835,464 The following table shows impaired loans and leases, segregated by class, and the corresponding reserve for impaired loan and lease losses. (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Reserve March 31, 2019 With no related reserve recorded: Commercial and agricultural $ 2,269 $ 2,269 $ — Auto and light truck 590 590 — Medium and heavy duty truck — — — Aircraft 1,251 1,251 — Construction equipment 471 471 — Commercial real estate 1,117 1,117 — Residential real estate and home equity — — — Consumer — — — Total with no related reserve recorded 5,698 5,698 — With a reserve recorded: Commercial and agricultural 504 504 42 Auto and light truck 3,365 3,365 488 Medium and heavy duty truck — — — Aircraft — — — Construction equipment 922 922 149 Commercial real estate 727 727 20 Residential real estate and home equity 342 344 124 Consumer — — — Total with a reserve recorded 5,860 5,862 823 Total impaired loans $ 11,558 $ 11,560 $ 823 December 31, 2018 With no related reserve recorded: Commercial and agricultural $ 2,471 $ 2,471 $ — Auto and light truck 7,504 7,504 — Medium and heavy duty truck 106 106 — Aircraft 556 556 — Construction equipment 905 905 — Commercial real estate 1,131 1,131 — Residential real estate and home equity — — — Consumer — — — Total with no related reserve recorded 12,673 12,673 — With a reserve recorded: Commercial and agricultural — — — Auto and light truck 3,840 3,840 372 Medium and heavy duty truck — — — Aircraft 7,004 7,004 1,255 Construction equipment 1,340 1,340 279 Commercial real estate 759 759 51 Residential real estate and home equity 344 346 126 Consumer — — — Total with a reserve recorded 13,287 13,289 2,083 Total impaired loans $ 25,960 $ 25,962 $ 2,083 The following table shows average recorded investment and interest income recognized on impaired loans and leases, segregated by class. Three Months Ended March 31, 2019 2018 (Dollars in thousands) Average Recorded Investment Interest Income Average Recorded Investment Interest Income Commercial and agricultural $ 2,821 $ — $ 2,843 $ — Auto and light truck 5,003 — 7,827 — Medium and heavy duty truck 54 — 347 — Aircraft 5,445 — 3,069 — Construction equipment 1,929 — 1,330 — Commercial real estate 1,859 — 3,696 — Residential real estate and home equity 343 5 350 4 Consumer — — — — Total $ 17,454 $ 5 $ 19,462 $ 4 There were no loan and lease modifications classified as a troubled debt restructuring (TDR) during the three months ended March 31, 2019 and 2018. The classification between nonperforming and performing is determined at the time of modification. Modification programs focus on extending maturity dates or modifying payment patterns with most TDRs experiencing a combination of concessions. Modifications do not result in the contractual forgiveness of principal or interest. There were no modifications during the three months ended March 31, 2019 and 2018 that resulted in an interest rate reduction below market rate. Consequently, the financial impact of the modification was immaterial. There were no TDRs which had payment defaults within the twelve months following modification during the three months ended March 31, 2019 and 2018. Default occurs when a loan or lease is 90 days or more past due under the modified terms or transferred to nonaccrual. The following table shows the recorded investment of loans and leases classified as troubled debt restructurings as of March 31, 2019 and December 31, 2018 . (Dollars in thousands) March 31, December 31, Performing TDRs $ 342 $ 344 Nonperforming TDRs 229 316 Total TDRs $ 571 $ 660

Reserve for Loan and Lease Loss

Reserve for Loan and Lease Losses	3 Months Ended
	Mar. 31, 2019
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Reserve for Loan and Lease Losses	Reserve for Loan and Lease Losses The reserve for loan and lease loss methodology has been consistently applied for several years, with enhancements instituted periodically. Reserve ratios are reviewed quarterly and revised periodically to reflect recent loss history and to incorporate current risks and trends which may not be recognized in historical data. As the historical charge-off analysis is updated, the Company reviews the look-back periods for each business loan portfolio. Furthermore, a thorough analysis of charge-offs, non-performing asset levels, special attention outstandings and delinquency is performed in order to review portfolio trends and other factors, including specific industry risks and economic conditions, which may have an impact on the reserves and reserve ratios applied to various portfolios. The Company adjusts the calculated historical based ratio as a result of the analysis of environmental factors, principally economic risk and concentration risk. Key economic factors affecting the portfolios are growth in gross domestic product, unemployment rates, housing market trends, commodity prices, inflation and global economic and political issues. Concentration risk is impacted primarily by geographic concentration in Northern Indiana and Southwestern Lower Michigan in the business banking and commercial real estate portfolios and by collateral concentration in the specialty finance portfolios and exposure to foreign markets by geographic risk. The reserve for loan and lease losses is maintained at a level believed to be appropriate by the Company to absorb probable losses inherent in the loan and lease portfolio. The determination of the reserve requires significant judgment reflecting the Company’s best estimate of probable loan and lease losses related to specifically identified impaired loans and leases as well as probable losses in the remainder of the various loan and lease portfolios. For purposes of determining the reserve, the Company has segmented loans and leases into classes based on the associated risk within these segments. The Company has determined that eight classes exist within the loan and lease portfolio. The methodology for assessing the appropriateness of the reserve consists of several key elements, which include: specific reserves for impaired loans, formula reserves for each business lending division portfolio including percentage allocations for special attention loans and leases not deemed impaired, and reserves for pooled homogeneous loans and leases. The Company’s evaluation is based upon a continuing review of these portfolios, estimates of customer performance, collateral values and dispositions, and assessments of economic and geopolitical events, all of which are subject to judgment and will change. The following table shows the changes in the reserve for loan and lease losses, segregated by class, for the three months ended March 31, 2019 and 2018 . (Dollars in thousands) Commercial and agricultural loans Auto and light truck Medium and heavy duty truck Aircraft Construction Commercial real estate Residential real estate and home equity Consumer loans Total March 31, 2019 Balance, beginning of period $ 17,063 $ 14,689 $ 4,303 $ 33,047 $ 10,922 $ 15,705 $ 3,425 $ 1,315 $ 100,469 Charge-offs 79 409 — 3,000 195 — 21 250 3,954 Recoveries 34 9 — 185 104 9 3 75 419 Net charge-offs (recoveries) 45 400 — 2,815 91 (9 ) 18 175 3,535 Provision (recovery of provision) 1,289 (30 ) 106 3,208 52 120 (21 ) 194 4,918 Balance, end of period $ 18,307 $ 14,259 $ 4,409 $ 33,440 $ 10,883 $ 15,834 $ 3,386 $ 1,334 $ 101,852 March 31, 2018 Balance, beginning of period $ 16,228 $ 10,103 $ 4,844 $ 34,619 $ 9,343 $ 14,792 $ 3,666 $ 1,288 $ 94,883 Charge-offs 25 316 — 29 5 7 11 163 556 Recoveries 49 6 — 44 19 21 6 73 218 Net charge-offs (recoveries) (24 ) 310 — (15 ) (14 ) (14 ) 5 90 338 Provision (recovery of provision) 1,357 1,017 (351 ) 202 1,560 (36 ) (96 ) 133 3,786 Balance, end of period $ 17,609 $ 10,810 $ 4,493 $ 34,836 $ 10,917 $ 14,770 $ 3,565 $ 1,331 $ 98,331 The following table shows the reserve for loan and lease losses and recorded investment in loans and leases, segregated by class, separated between individually and collectively evaluated for impairment as of March 31, 2019 and December 31, 2018 . (Dollars in thousands) Commercial and agricultural loans Auto and light truck Medium and heavy duty truck Aircraft Construction Commercial real estate Residential real estate and home equity Consumer loans Total March 31, 2019 Reserve for loan and lease losses Ending balance, individually evaluated for impairment $ 42 $ 488 $ — $ — $ 149 $ 20 $ 124 $ — $ 823 Ending balance, collectively evaluated for impairment 18,265 13,771 4,409 33,440 10,734 15,814 3,262 1,334 101,029 Total reserve for loan and lease losses $ 18,307 $ 14,259 $ 4,409 $ 33,440 $ 10,883 $ 15,834 $ 3,386 $ 1,334 $ 101,852 Recorded investment in loans Ending balance, individually evaluated for impairment $ 2,773 $ 3,955 $ — $ 1,251 $ 1,393 $ 1,844 $ 342 $ — $ 11,558 Ending balance, collectively evaluated for impairment 1,143,258 550,123 285,631 829,186 639,642 816,615 514,377 135,797 4,914,629 Total recorded investment in loans $ 1,146,031 $ 554,078 $ 285,631 $ 830,437 $ 641,035 $ 818,459 $ 514,719 $ 135,797 $ 4,926,187 December 31, 2018 Reserve for loan and lease losses Ending balance, individually evaluated for impairment $ — $ 372 $ — $ 1,255 $ 279 $ 51 $ 126 $ — $ 2,083 Ending balance, collectively evaluated for impairment 17,063 14,317 4,303 31,792 10,643 15,654 3,299 1,315 98,386 Total reserve for loan and lease losses $ 17,063 $ 14,689 $ 4,303 $ 33,047 $ 10,922 $ 15,705 $ 3,425 $ 1,315 $ 100,469 Recorded investment in loans Ending balance, individually evaluated for impairment $ 2,471 $ 11,344 $ 106 $ 7,560 $ 2,245 $ 1,890 $ 344 $ — $ 25,960 Ending balance, collectively evaluated for impairment 1,070,734 548,643 283,438 795,551 642,994 807,996 523,511 136,637 4,809,504 Total recorded investment in loans $ 1,073,205 $ 559,987 $ 283,544 $ 803,111 $ 645,239 $ 809,886 $ 523,855 $ 136,637 $ 4,835,464

Operating Leases

Operating Leases	3 Months Ended
	Mar. 31, 2019
Operating Leases [Abstract]
Lessor Operating Leases	Operating Leases As a lessor, the Company finances various types of construction equipment, medium and heavy duty trucks, automobiles and other equipment under leases classified as operating leases. The following table shows the summary of the gross investment in operating lease equipment and accumulated depreciation. (Dollars in thousands) March 31, December 31, Operating leases: Gross investment in operating lease financing $ 198,984 $ 199,954 Accumulated depreciation (67,390 ) (65,514 ) Net investment in operating lease financing $ 131,594 $ 134,440 The following table shows minimum future lease rental payments due from clients on operating lease equipment at March 31, 2019 . (Dollars in thousands) 2019 $ 23,462 2020 33,623 2021 19,570 2022 11,578 2023 6,037 Thereafter 2,774 Total $ 97,044 Income related to operating lease equipment rental for the three months ended March 31, 2019 and 2018 was $7.98 million and $7.76 million , respectively. Depreciation expense related to operating leased equipment for the three months ended March 31, 2019 and 2018 was $6.52 million and $6.43 million , respectively. Income related to reimbursements from lessees for personal property tax on operating leased equipment for the three months ended March 31, 2019 was $0.24 million . Expense related to personal property tax payments on operating leased equipment for the three months ended March 31, 2019 was $0.24 million .

Mortgage Servicing Rights

Mortgage Servicing Rights	3 Months Ended
	Mar. 31, 2019
Transfers and Servicing of Financial Assets [Abstract]
Mortgage Servicing Rights	Mortgage Servicing Rights The Company recognizes the rights to service residential mortgage loans for others as separate assets, whether the servicing rights are acquired through a separate purchase or through the sale of originated loans with servicing rights retained. The Company allocates a portion of the total proceeds of a mortgage loan to servicing rights based on the relative fair value. The unpaid principal balance of residential mortgage loans serviced for third parties was $735.50 million and $734.30 million at March 31, 2019 and December 31, 2018 , respectively. Mortgage servicing rights (MSRs) are evaluated for impairment at each reporting date. For purposes of impairment measurement, MSRs are stratified based on the predominant risk characteristics of the underlying servicing, principally by loan type. If temporary impairment exists within a tranche, a valuation allowance is established through a charge to income equal to the amount by which the carrying value exceeds the fair value. If it is later determined all or a portion of the temporary impairment no longer exists for a particular tranche, the valuation allowance is reduced through a recovery of income. The following table shows changes in the carrying value of MSRs and the associated valuation allowance. Three Months Ended (Dollars in thousands) 2019 2018 Mortgage servicing rights: Balance at beginning of period $ 4,283 $ 4,349 Additions 197 243 Amortization (233 ) (236 ) Sales — — Carrying value before valuation allowance at end of period 4,247 4,356 Valuation allowance: Balance at beginning of period — — Impairment recoveries — — Balance at end of period $ — $ — Net carrying value of mortgage servicing rights at end of period $ 4,247 $ 4,356 Fair value of mortgage servicing rights at end of period $ 6,677 $ 7,389 At March 31, 2019 and 2018 , the fair value of MSRs exceeded the carrying value reported in the Consolidated Statements of Financial Condition by $2.43 million and $3.03 million , respectively. This difference represents increases in the fair value of certain MSRs that could not be recorded above cost basis. Mortgage loan contractual servicing fees, including late fees and ancillary income, were $0.62 million and $0.66 million for the three months ended March 31, 2019 and 2018 , respectively. Mortgage loan contractual servicing fees are included in Mortgage Banking on the Consolidated Statements of Income.

Commitments and Financial Instr

Commitments and Financial Instruments with Off-Balance-Sheet Risk	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Financial Instruments with Off-Balance-Sheet Risk	Commitments and Financial Instruments with Off-Balance-Sheet Risk Lease Commitments — The Company and its subsidiaries are obligated under operating leases for certain office premises and equipment. The following table shows operating lease right of use assets and operating lease liabilities as of March 31, 2019. (Dollars in thousands) Statement of Financial Condition classification March 31, Operating lease right of use assets Accrued income and other assets $ 10,409 Operating lease liabilities Accrued expenses and other liabilities $ 10,801 The following table shows the components of operating leases expense for the three months ended March 31, 2019. (Dollars in thousands) Statement of Income classification Three Months Ended Operating lease cost Net occupancy expense $ 878 Short-term lease cost Net occupancy expense 3 Variable lease cost Net occupancy expense — Total operating lease cost $ 881 Gross rental expense for the three months ended March 31, 2018 was $0.94 million . The following table shows future minimum rental commitments for all noncancellable operating leases for the next five years and thereafter. (Dollars in thousands) 2019 $ 2,479 2020 3,581 2021 2,391 2022 1,133 2023 425 Thereafter 1,706 Total lease payments 11,715 Less: imputed interest (914 ) Present value of operating lease liabilities $ 10,801 The following table shows the weighted average remaining operating lease term, the weighted average discount rate and supplemental Consolidated Statement of Cash Flows information for operating leases at March 31, 2019. (Dollars in thousands) March 31, Weighted average remaining lease term 4.89 years Weighted average discount rate 3.02 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 948 During the three months ended March 31, 2019, the Company recognized a net gain on the sale of an office building in the amount of $1.32 million . The Company commenced an operating lease with the buyer of the building to lease a portion of it for office space resulting in a new right of use asset and operating lease liability. There are no new significant leases that have not yet commenced as of March 31, 2019 . Financial Instruments with Off-Balance-Sheet Risk — 1st Source and its subsidiaries are parties to financial instruments with off-balance-sheet risk in the normal course of business. These off-balance-sheet financial instruments include commitments to originate and sell loans and standby letters of credit. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Statements of Financial Condition. The following table shows financial instruments whose contract amounts represent credit risk. (Dollars in thousands) March 31, 2019 December 31, 2018 Amounts of commitments: Loan commitments to extend credit $ 1,068,340 $ 1,095,053 Standby letters of credit $ 29,830 $ 31,133 Commercial and similar letters of credit $ 2,427 $ 2,500 The exposure to credit loss in the event of nonperformance by the other party to the financial instruments for loan commitments and standby letters of credit is represented by the dollar amount of those instruments. The Company uses the same credit policies and collateral requirements in making commitments and conditional obligations as it does for on-balance-sheet instruments. The Bank grants mortgage loan commitments to borrowers, subject to normal loan underwriting standards. The interest rate risk associated with these loan commitments is managed by entering into contracts for future deliveries of loans. Loan commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby letters of credit are conditional commitments that guarantee the performance of a client to a third party. The credit risk involved in and collateral obtained when issuing standby letters of credit is essentially the same as that involved in extending loan commitments to clients. Standby letters of credit generally have terms ranging from six months to one year. 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. Commercial letters of credit generally have terms ranging from three months to six months.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments Commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans are considered derivative instruments. See Note 8 for further information. The Company has certain interest rate derivative positions that are not designated as hedging instruments. Derivative assets and liabilities are recorded at fair value on the Consolidated Statements of Financial Condition and do not take into account the effects of master netting agreements. Master netting agreements allow the Company to settle all derivative contracts held with a single counterparty on a net basis, and to offset net derivative positions with related collateral, where applicable. These derivative positions relate to transactions in which the Company enters into an interest rate swap with a client while at the same time entering into an offsetting interest rate swap with another financial institution. In connection with each transaction, the Company agrees to pay interest to the client on a notional amount at a variable interest rate and receive interest from the client on the same notional amount at a fixed interest rate. At the same time, the Company agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows the client to effectively convert a variable rate loan to a fixed rate. Because the terms of the swaps with the customers and the other financial institutions offset each other, with the only difference being counterparty credit risk, changes in the fair value of the underlying derivative contracts are not materially different and do not significantly impact the Company’s results of operations. The following table shows the amounts of non-hedging derivative financial instruments. Asset derivatives Liability derivatives (Dollars in thousands) Notional or contractual amount Statement of Financial Condition classification Fair value Statement of Financial Condition classification Fair value March 31, 2019 Interest rate swap contracts $ 908,503 Other assets $ 10,375 Other liabilities $ 10,558 Loan commitments 11,671 Mortgages held for sale 189 N/A — Forward contracts - mortgage loan 16,334 N/A — Mortgages held for sale 125 Total $ 936,508 $ 10,564 $ 10,683 December 31, 2018 Interest rate swap contracts $ 855,848 Other assets $ 7,124 Other liabilities $ 7,250 Loan commitments 5,871 Mortgages held for sale 112 N/A — Forward contracts - mortgage loan 14,087 N/A — Mortgages held for sale 135 Total $ 875,806 $ 7,236 $ 7,385 The following table shows the amounts included in the Statements of Income for non-hedging derivative financial instruments. Gain (loss) Three Months Ended (Dollars in thousands) Statement of Income classification 2019 2018 Interest rate swap contracts Other expense $ (57 ) $ (1 ) Interest rate swap contracts Other income 279 333 Loan commitments Mortgage banking 77 (4 ) Forward contracts - mortgage loan Mortgage banking 10 3 Total $ 309 $ 331 The following table shows the offsetting of financial assets and derivative assets. Gross Amounts Not Offset in the Statement of Financial Condition (Dollars in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Assets Presented in the Statement of Financial Condition Financial Instruments Cash Collateral Received Net Amount March 31, 2019 Interest rate swaps $ 10,375 $ — $ 10,375 $ — $ 90 $ 10,285 December 31, 2018 Interest rate swaps $ 7,128 $ 4 $ 7,124 $ 177 $ 610 $ 6,337 The following table shows the offsetting of financial liabilities and derivative liabilities. Gross Amounts Not Offset in the Statement of Financial Condition (Dollars in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Liabilities Presented in the Statement of Financial Condition Financial Instruments Cash Collateral Pledged Net Amount March 31, 2019 Interest rate swaps $ 10,558 $ — $ 10,558 $ 9,761 $ — $ 797 Repurchase agreements 112,172 — 112,172 112,172 — — Total $ 122,730 $ — $ 122,730 $ 121,933 $ — $ 797 December 31, 2018 Interest rate swaps $ 7,254 $ 4 $ 7,250 $ 1,700 $ — $ 5,550 Repurchase agreements 103,627 — 103,627 103,627 — — Total $ 110,881 $ 4 $ 110,877 $ 105,327 $ — $ 5,550 If a default in performance of any obligation of a repurchase agreement occurs, each party will set-off property held in respect of transactions against obligations owing in respect of any other transactions. At March 31, 2019 and December 31, 2018 , repurchase agreements had a remaining contractual maturity of $109.89 million and $102.34 million in overnight and $2.28 million and $1.29 million in up to 30 days, respectively and were collateralized by U.S. Treasury and Federal agencies securities.

Variable Interest Entities

Variable Interest Entities	3 Months Ended
	Mar. 31, 2019
Variable Interest Entities [Abstract]
Variable Interest Entities Disclosure	Variable Interest Entities A variable interest entity (VIE) is a partnership, limited liability company, trust or other legal entity that meets any one of the following criteria: • The entity does not have sufficient equity to conduct its activities without additional subordinated financial support from another party. • The entity’s investors lack the power to direct the activities that most significantly affect the entity’s economic performance. • The entity’s at-risk holders do not have the obligation to absorb the losses or the right to receive residual returns. • The voting rights of some investors are not proportional to their economic interests in the entity, and substantially all of the entity’s activities involve, or are conducted on behalf of, investors with disproportionately few voting rights. The Company is involved in various entities that are considered to be VIEs. The Company’s investments in VIEs are primarily related to investments promoting affordable housing, community development and renewable energy sources. Some of these tax-advantaged investments support the Company’s regulatory compliance with the Community Reinvestment Act. The Company’s investments in these entities generate a return primarily through the realization of federal and state income tax credits, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These tax credits are recognized as a reduction of tax expense or, for investments qualifying as investment tax credits, as a reduction to the related investment asset. The Company recognized federal income tax credits related to its affordable housing and community development tax-advantaged investments in tax expense of $0.35 million and $0.32 million , for the three months ended March 31, 2019 and 2018 , respectively. The Company also recognized $1.60 million and $8.15 million of investment tax credits for the three months ended March 31, 2019 and 2018 , respectively. The Company is not required to consolidate VIEs in which it has concluded it does not have a controlling financial interest, and thus is not the primary beneficiary. In such cases, the Company does not have both the power to direct the entities’ most significant activities and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. As a limited partner in these operating partnerships, we are allocated credits and deductions associated with the underlying properties. The Company has determined that it is not the primary beneficiary of these investments because the general partners have the power to direct activities that most significantly influence the economic performance of their respective partnerships. The Company’s investments in these unconsolidated VIEs are carried in Other Assets on the Consolidated Statements of Financial Condition. The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are generally carried in Other Liabilities on the Consolidated Statements of Financial Condition. The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment recorded on the Company’s Consolidated Statements of Financial Condition, net of unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the community-based business, housing projects and renewable energy projects completely fail and do not meet certain taxing authority compliance requirements resulting in recapture of the related tax credits. The following table provides a summary of investments in affordable housing, community development and renewable energy VIEs that the Company has not consolidated. (Dollars in thousands) March 31, 2019 December 31, 2018 Investment carrying amount $ 12,999 $ 15,083 Unfunded capital and other commitments 4,692 6,449 Maximum exposure to loss 40,199 40,705 The Company is required to consolidate VIEs in which it has concluded it has significant involvement in and the ability to direct the activities that impact the entity’s economic performance. The Company is the managing general partner of entities to which it shares interest in tax-advantaged investments with third parties. At March 31, 2019 and December 31, 2018 , approximately $21.72 million and $8.38 million of the Company’s assets and $18.75 million and $6.70 million of its liabilities included on the Consolidated Statements of Financial Condition were related to tax-advantaged investment VIEs which the Company has consolidated, respectively. The assets of the consolidated VIEs are reported in Other Assets, the liabilities are reported in Other Liabilities and the non-controlling interest is reported in Equity on the Consolidated Statements of Financial Condition. The assets of a particular VIE are the primary source of funds to settle its obligations. The creditors of the VIE do not have recourse to the general credit of the Company. The Company’s exposure to the consolidated VIE is generally limited to the carrying value of its variable interest plus any related tax credits previously recognized. Additionally, the Company sponsors one trust, 1st Source Master Trust (Capital Trust) of which 100% of the common equity is owned by the Company. The Capital Trust was formed in 2007 for the purpose of issuing corporation-obligated mandatorily redeemable capital securities (the capital securities) to third-party investors and investing the proceeds from the sale of the capital securities solely in junior subordinated debenture securities of the Company (the subordinated notes). The subordinated notes held by the Capital Trust are the sole assets of the Capital Trust. The Capital Trust qualifies as a variable interest entity for which the Company is not the primary beneficiary and therefore reported in the financial statements as an unconsolidated subsidiary. The junior subordinated debentures are reflected as subordinated notes in the Statements of Financial Condition with the corresponding interest distributions reflected as Interest Expense in the Statements of Income. The common shares issued by the Capital Trust are included in Other Assets in the Statements of Financial Condition. Distributions on the capital securities issued by the Capital Trust are payable quarterly at a rate per annum equal to the interest rate being earned by the Capital Trust on the subordinated notes held by the Capital Trust. The capital securities are subject to mandatory redemption, in whole or in part, upon repayment of the subordinated notes. The Company has entered into agreements which, taken collectively, fully and unconditionally guarantee the capital securities subject to the terms of each of the guarantees. The capital securities held by the Capital Trust qualify as Tier 1 capital under Federal Reserve Board guidelines. The following table shows subordinated notes at March 31, 2019 . (Dollars in thousands) Amount of Subordinated Notes Interest Rate Maturity Date June 2007 issuance (1) $ 41,238 7.22 % 6/15/2037 August 2007 issuance (2) 17,526 4.27 % 9/15/2037 Total $ 58,764 (1) Fixed rate through life of debt. (2) 3-Month LIBOR + 1.48% through remaining life of debt.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include non-vested restricted stock awards. Non-vested restricted stock awards are considered participating securities to the extent the holders of these securities receive non-forfeitable dividends at the same rate as holders of common stock. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. Stock options, where the exercise price was greater than the average market price of the common shares, were excluded from the computation of diluted earnings per common share because the result would have been antidilutive. There were no stock options outstanding as of March 31, 2019 and 2018 . The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share. Three Months Ended (Dollars in thousands - except per share amounts) 2019 2018 Distributed earnings allocated to common stock $ 6,966 $ 5,704 Undistributed earnings allocated to common stock 15,102 13,278 Net earnings allocated to common stock 22,068 18,982 Net earnings allocated to participating securities 128 134 Net income allocated to common stock and participating securities $ 22,196 $ 19,116 Weighted average shares outstanding for basic earnings per common share 25,759,186 25,950,386 Dilutive effect of stock compensation — — Weighted average shares outstanding for diluted earnings per common share 25,759,186 25,950,386 Basic earnings per common share $ 0.86 $ 0.73 Diluted earnings per common share $ 0.86 $ 0.73

Stock Based Compensation

Stock Based Compensation	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Based Compensation	Stock Based Compensation As of March 31, 2019 , the Company had four active stock-based employee compensation plans, which are more fully described in Note 16 of the Consolidated Financial Statements in 1st Source’s Annual Report on Form 10-K for the year ended December 31, 2018 . These plans include three executive stock award plans, the Executive Incentive Plan, the Restricted Stock Award Plan, the Strategic Deployment Incentive Plan; and the Employee Stock Purchase Plan. The 2011 Stock Option Plan was approved by the shareholders on April 21, 2011 but the Company had not made any grants through March 31, 2019 . Stock-based compensation expense for all stock-based compensation awards granted is based on the grant-date fair value. For all awards except stock option awards, the grant date fair value is either the fair market value per share or book value per share (corresponding to the type of stock awarded) as of the grant date. For stock option awards, the grant date fair value is estimated using the Black-Scholes option pricing model. For all awards the Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award, for which the Company uses the related vesting term. Total fair value of options vested and expensed was zero for the three months ended March 31, 2019 and 2018 . As of March 31, 2019 and 2018 there were no outstanding stock options. There were no stock options exercised during the three months ended March 31, 2019 and 2018 . All shares issued in connection with stock option exercises are issued from available treasury stock. As of March 31, 2019 , there was $6.56 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of 3.39 years.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	3 Months Ended
	Mar. 31, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Income	Accumulated Other Comprehensive Income (Loss) The following table presents reclassifications out of accumulated other comprehensive income (loss) related to unrealized gains and losses on available-for-sale securities. Three Months Ended March 31, Affected Line Item in the Statements of Income (Dollars in thousands) 2019 2018 Realized losses included in net income $ — $ (345 ) Losses on investment securities available-for-sale — (345 ) Income before income taxes Tax effect — 83 Income tax expense Net of tax $ — $ (262 ) Net income

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The total amount of unrecognized tax benefits that would affect the effective tax rate if recognized was zero at March 31, 2019 and December 31, 2018 . Interest and penalties are recognized through the income tax provision. For the three months ended March 31, 2019 and 2018 , the Company recognized $0.00 million and $0.01 million in interest or penalties, respectively. There was no accrued interest and penalties at March 31, 2019 and December 31, 2018 . Tax years that remain open and subject to audit include the federal 2015-2018 years and the Indiana 2015-2018 years. The Company does not anticipate a significant change in the amount of uncertain tax positions within the next 12 months.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company records certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are also utilized to determine the initial value of certain assets and liabilities, to perform impairment assessments, and for disclosure purposes. The Company uses quoted market prices and observable inputs to the maximum extent possible when measuring fair value. In the absence of quoted market prices, various valuation techniques are utilized to measure fair value. When possible, observable market data for identical or similar financial instruments is used in the valuation. When market data is not available, fair value is determined using valuation models that incorporate management’s estimates of the assumptions a market participant would use in pricing the asset or liability. Fair value measurements are classified within one of three levels based on the observability of the inputs used to determine fair value, as follows: • Level 1 — The valuation is based on quoted prices in active markets for identical instruments. • Level 2 — The valuation is based on observable inputs such as quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 — The valuation is based on unobservable inputs that are supported by minimal or no market activity and that are significant to the fair value of the instrument. Level 3 valuations are typically performed using pricing models, discounted cash flow methodologies, or similar techniques that incorporate management’s own estimates of assumptions that market participants would use in pricing the instrument, or valuations that require significant management judgment or estimation. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company elected fair value accounting for mortgages held for sale. The Company believes the election for mortgages held for sale (which are economically hedged with free-standing derivatives) will reduce certain timing differences and better match changes in the value of these assets with changes in the value of derivatives used as economic hedges for these assets. At March 31, 2019 and December 31, 2018 , all mortgages held for sale were carried at fair value. The following table shows the differences between the fair value carrying amount of mortgages held for sale measured at fair value and the aggregate unpaid principal amount the Company is contractually entitled to receive at maturity. (Dollars in thousands) Fair value carrying amount Aggregate unpaid principal Excess of fair value carrying amount over (under) unpaid principal March 31, 2019 Mortgages held for sale reported at fair value $ 9,210 $ 8,970 $ 240 (1) December 31, 2018 Mortgages held for sale reported at fair value $ 11,290 $ 11,076 $ 214 (1) (1) The excess of fair value carrying amount over (under) unpaid principal is included in mortgage banking income and includes changes in fair value at and subsequent to funding and gains and losses on the related loan commitment prior to funding. Financial Instruments on Recurring Basis: The following is a description of the valuation methodologies used for financial instruments measured at fair value on a recurring basis: Investment securities available-for-sale are valued primarily by a third party pricing agent. Prices supplied by the independent pricing agent, as well as their pricing methodologies and assumptions, are reviewed by the Company for reasonableness and to ensure such prices are aligned with market levels. In general, the Company’s investment securities do not possess a complex structure that could introduce greater valuation risk. The portfolio mainly consists of traditional investments including U.S. Treasury and Federal agencies securities, Federal agency mortgage pass-through securities, and general obligation and revenue municipal bonds. Pricing for such instruments is fairly generic and is easily obtained. On a quarterly basis, prices supplied by the pricing agent are validated by comparison to prices obtained from other third party sources for a material portion of the portfolio. The valuation policy and procedures for Level 3 fair value measurements of available-for-sale debt securities are decided through collaboration between management of the Corporate Accounting and Funds Management departments. The changes in fair value measurement for Level 3 securities are analyzed on a periodic basis under a collaborative framework with the aforementioned departments. The methodology and variables used for input are derived from the combination of observable and unobservable inputs. The unobservable inputs are determined through internal assumptions that may vary from period to period due to external factors, such as market movement and credit rating adjustments. Both the market and income valuation approaches are implemented using the following types of inputs: • U.S. treasuries are priced using the market approach and utilizing live data feeds from active market exchanges for identical securities. • Government-sponsored agency debt securities and corporate bonds are primarily priced using available market information through processes such as benchmark curves, market valuations of like securities, sector groupings and matrix pricing. • Other government-sponsored agency securities, mortgage-backed securities and some of the actively traded REMICs and CMOs, are primarily priced using available market information including benchmark yields, prepayment speeds, spreads and volatility of similar securities. • State and political subdivisions are largely grouped by characteristics, i.e., geographical data and source of revenue in trade dissemination systems. Since some securities are not traded daily and due to other grouping limitations, active market quotes are often obtained using benchmarking for like securities. Local direct placement municipal securities, with very little market activity, are priced using an appropriate market yield curve, which includes a credit spread assumption. Mortgages held for sale and the related loan commitments and forward contracts (hedges) are valued using a market value approach and utilizing an appropriate current market yield and a loan commitment closing rate based on historical analysis. Interest rate swap positions, both assets and liabilities, are valued by a third-party pricing agent using an income approach and utilizing models that use as their basis readily observable market parameters. This valuation process considers various factors including interest rate yield curves, time value and volatility factors. Validation of third party agent valuations is accomplished by comparing those values to the Company’s swap counterparty valuations. Management believes an adjustment is required to “mid-market” valuations for derivatives tied to its performing loan portfolio to recognize the imprecision and related exposure inherent in the process of estimating expected credit losses as well as velocity of deterioration evident with systemic risks embedded in these portfolios. Any change in the mid-market derivative valuation adjustment will be recognized immediately through the Consolidated Statements of Income. The following table shows the balance of assets and liabilities measured at fair value on a recurring basis. (Dollars in thousands) Level 1 Level 2 Level 3 Total March 31, 2019 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 33,895 $ 501,511 $ — $ 535,406 U.S. States and political subdivisions securities — 83,692 5,064 88,756 Mortgage-backed securities — Federal agencies — 329,941 — 329,941 Corporate debt securities — 48,006 — 48,006 Foreign government and other securities — 700 — 700 Total debt securities available-for-sale 33,895 963,850 5,064 1,002,809 Mortgages held for sale — 9,210 — 9,210 Accrued income and other assets (interest rate swap agreements) — 10,375 — 10,375 Total $ 33,895 $ 983,435 $ 5,064 $ 1,022,394 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 10,558 $ — $ 10,558 Total $ — $ 10,558 $ — $ 10,558 December 31, 2018 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 33,746 $ 497,477 $ — $ 531,223 U.S. States and political subdivisions securities — 93,557 1,025 94,582 Mortgage-backed securities — Federal agencies — 318,233 — 318,233 Corporate debt securities — 45,392 — 45,392 Foreign government and other securities — 699 — 699 Total debt securities available-for-sale 33,746 955,358 1,025 990,129 Mortgages held for sale — 11,290 — 11,290 Accrued income and other assets (interest rate swap agreements) — 7,124 — 7,124 Total $ 33,746 $ 973,772 $ 1,025 $ 1,008,543 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 7,250 $ — $ 7,250 Total $ — $ 7,250 $ — $ 7,250 The following table shows changes in Level 3 assets measured at fair value on a recurring basis for the quarter ended March 31, 2019 and 2018 . (Dollars in thousands) U.S. States and political subdivisions securities Foreign government and other securities Investment securities available-for-sale Beginning balance January 1, 2019 $ 1,025 $ — $ 1,025 Total gains or losses (realized/unrealized): Included in earnings — — — Included in other comprehensive income 19 — 19 Purchases 4,100 — 4,100 Issuances — — — Sales — — — Settlements — — — Maturities (80 ) — (80 ) Transfers into Level 3 — — — Transfers out of Level 3 — — — Ending balance March 31, 2019 $ 5,064 $ — $ 5,064 Beginning balance January 1, 2018 $ 2,155 $ 710 $ 2,865 Total gains or losses (realized/unrealized): Included in earnings — — — Included in other comprehensive income — (2 ) (2 ) Purchases — — — Issuances — — — Sales — — — Settlements — — — Maturities — — — Transfers into Level 3 — — — Transfers out of Level 3 — — — Ending balance March 31, 2018 $ 2,155 $ 708 $ 2,863 There were no gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at March 31, 2019 or 2018 . No transfers between levels occurred during the three months ended March 31, 2019 or 2018 . The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis. (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Range of Inputs March 31, 2019 Debt securities available-for sale Direct placement municipal securities $ 5,064 Discounted cash flows Credit spread assumption 2.51% - 2.94% December 31, 2018 Debt securities available-for sale Direct placement municipal securities $ 1,025 Discounted cash flows Credit spread assumption 0.17% - 3.02% The sensitivity to changes in the unobservable inputs and their impact on the fair value measurement can be significant. The significant unobservable input for direct placement municipal securities are the credit spread assumptions used to determine the fair value measure. An increase (decrease) in the estimated spread assumption of the market will decrease (increase) the fair value measure of the securities. Financial Instruments on Non-recurring Basis: The Company may be required, from time to time, to measure certain other financial assets at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from application of lower of cost or market accounting or impairment charges of individual assets. The Credit Policy Committee (CPC), a management committee, is responsible for overseeing the valuation processes and procedures for Level 3 measurements of impaired loans, other real estate and repossessions. The CPC reviews these assets on a quarterly basis to determine the accuracy of the observable inputs, generally third party appraisals, auction values, values derived from trade publications and data submitted by the borrower, and the appropriateness of the unobservable inputs, generally discounts due to current market conditions and collection issues. The CPC establishes discounts based on asset type and valuation source; deviations from the standard are documented. The discounts are reviewed periodically, annually at a minimum, to determine they remain appropriate. Consideration is given to current trends in market values for the asset categories and gains and losses on sales of similar assets. The Loan and Funds Management Committee of the Board of Directors is responsible for overseeing the CPC. Discounts vary depending on the nature of the assets and the source of value. Aircraft are generally valued using quarterly trade publications adjusted for engine time, condition, maintenance programs, discounted by 10% . Likewise, autos are valued using current auction values, discounted by 10% ; medium and heavy duty trucks are valued using trade publications and auction values, discounted by 15% . Construction equipment is generally valued using trade publications and auction values, discounted by 20% . Real estate is valued based on appraisals or evaluations, discounted by 20% with higher discounts for property in poor condition or property with characteristics which may make it more difficult to market. Commercial loans subject to borrowing base certificates are generally discounted by 20% for receivables and 40% - 75% for inventory with higher discounts when monthly borrowing base certificates are not required or received. Impaired loans and related write-downs are based on the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are reviewed quarterly and estimated using customized discounting criteria, appraisals and dealer and trade magazine quotes which are used in a market valuation approach. In accordance with fair value measurements, only impaired loans for which a reserve for loan loss has been established based on the fair value of collateral require classification in the fair value hierarchy. As a result, only a portion of the Company’s impaired loans are classified in the fair value hierarchy. The Company has established MSRs valuation policies and procedures based on industry standards and to ensure valuation methodologies are consistent and verifiable. MSRs and related adjustments to fair value result from application of lower of cost or fair value accounting. For purposes of impairment, MSRs are stratified based on the predominant risk characteristics of the underlying servicing, principally by loan type. The fair value of each tranche of the servicing portfolio is estimated by calculating the present value of estimated future net servicing cash flows, taking into consideration actual and expected mortgage loan prepayment rates, discount rates, servicing costs, and other economic factors. Prepayment rates and discount rates are derived through a third party pricing agent. Changes in the most significant inputs, including prepayment rates and discount rates, are compared to the changes in the fair value measurements and appropriate resolution is made. A fair value analysis is also obtained from an independent third party agent and compared to the internal valuation for reasonableness. MSRs do not trade in an active, open market with readily observable prices and though sales of MSRs do occur, precise terms and conditions typically are not readily available and the characteristics of the Company’s servicing portfolio may differ from those of any servicing portfolios that do trade. Other real estate is based on the fair value of the underlying collateral less expected selling costs. Collateral values are estimated primarily using appraisals and reflect a market value approach. Fair values are reviewed quarterly, and new appraisals are obtained annually. Repossessions are similarly valued. For assets measured at fair value on a nonrecurring basis the following represents impairment charges (recoveries) recognized on these assets during the quarter ended March 31, 2019 : impaired loans - $3.00 million ; mortgage servicing rights - $0.00 million ; repossessions - $1.10 million ; and other real estate - $0.00 million . The following table shows the carrying value of assets measured at fair value on a non-recurring basis. (Dollars in thousands) Level 1 Level 2 Level 3 Total March 31, 2019 Impaired loans - collateral based $ — $ — $ 1,578 $ 1,578 Accrued income and other assets (mortgage servicing rights) — — 4,247 4,247 Accrued income and other assets (repossessions) — — 10,411 10,411 Accrued income and other assets (other real estate) — — 417 417 Total $ — $ — $ 16,653 $ 16,653 December 31, 2018 Impaired loans - collateral based $ — $ — $ 7,306 $ 7,306 Accrued income and other assets (mortgage servicing rights) — — 4,283 4,283 Accrued income and other assets (repossessions) — — 6,666 6,666 Accrued income and other assets (other real estate) — — 299 299 Total $ — $ — $ 18,554 $ 18,554 The following table below shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a non-recurring basis. (Dollars in thousands) Carrying Value Fair Value Valuation Methodology Unobservable Inputs Range of Inputs March 31, 2019 Impaired loans $ 1,578 $ 1,578 Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 20% - 100% Mortgage servicing rights 4,247 6,677 Discounted cash flows Constant prepayment rate (CPR) 9.1% - 25.9% Discount rate 9.8% - 12.6% Repossessions 10,411 10,883 Appraisals, trade publications and auction values Discount for lack of marketability 0% - 6% Other real estate 417 424 Appraisals Discount for lack of marketability 0% - 9% December 31, 2018 Impaired loans $ 7,306 $ 7,306 Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 20% - 35% Mortgage servicing rights 4,283 7,238 Discounted cash flows Constant prepayment rate (CPR) 7.2% - 24.8% Discount rate 10.3 % - 13.1% Repossessions 6,666 6,991 Appraisals, trade publications and auction values Discount for lack of marketability 4% - 6% Other real estate 299 305 Appraisals Discount for lack of marketability 0% - 10% GAAP requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring or non-recurring basis. The following table shows the fair values of the Company’s financial instruments. (Dollars in thousands) Carrying or Contract Value Fair Value Level 1 Level 2 Level 3 March 31, 2019 Assets: Cash and due from banks $ 64,619 $ 64,619 $ 64,619 $ — $ — Federal funds sold and interest bearing deposits with other banks 3,062 3,062 3,062 — — Investment securities, available-for-sale 1,002,809 1,002,809 33,895 963,850 5,064 Other investments 28,404 28,404 28,404 — — Mortgages held for sale 9,210 9,210 — 9,210 — Loans and leases, net of reserve for loan and lease losses 4,824,335 4,802,938 — — 4,802,938 Mortgage servicing rights 4,247 6,677 — — 6,677 Accrued interest receivable 21,576 21,576 — 21,576 — Interest rate swaps 10,375 10,375 — 10,375 — Liabilities: Deposits $ 5,124,091 $ 5,121,098 $ 3,559,051 $ 1,562,047 $ — Short-term borrowings 255,388 255,388 148,284 107,104 — Long-term debt and mandatorily redeemable securities 71,439 69,724 — 69,724 — Subordinated notes 58,764 55,484 — 55,484 — Accrued interest payable 11,377 11,377 — 11,377 — Interest rate swaps 10,558 10,558 — 10,558 — Off-balance-sheet instruments * — 247 — 247 — December 31, 2018 Assets: Cash and due from banks $ 94,907 $ 94,907 $ 94,907 $ — $ — Federal funds sold and interest bearing deposits with other banks 4,172 4,172 4,172 — — Investment securities, available-for-sale 990,129 990,129 33,746 955,358 1,025 Other investments 28,404 28,404 28,404 — — Mortgages held for sale 11,290 11,290 — 11,290 — Loans and leases, net of reserve for loan and lease losses 4,734,995 4,689,267 — — 4,689,267 Mortgage servicing rights 4,283 7,238 — — 7,238 Accrued interest receivable 18,880 18,880 — 18,880 — Interest rate swaps 7,124 7,124 — 7,124 — Liabilities: Deposits $ 5,122,322 $ 5,111,711 $ 3,654,556 $ 1,457,155 $ — Short-term borrowings 199,344 199,344 113,734 85,610 — Long-term debt and mandatorily redeemable securities 71,123 68,751 — 68,751 — Subordinated notes 58,764 45,874 — 45,874 — Accrued interest payable 8,950 8,950 — 8,950 — Interest rate swaps 7,250 7,250 — 7,250 — Off-balance-sheet instruments * — 259 — 259 — * Represents estimated cash outflows required to currently settle the obligations at current market rates. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. These estimates are subjective in nature and require considerable judgment to interpret market data. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange, nor are they intended to represent the fair value of the Company as a whole. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The fair value estimates presented herein are based on pertinent information available to management as of the respective balance sheet date. Although the Company is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein. Other significant assets, such as premises and equipment, other assets, and liabilities not defined as financial instruments, are not included in the above disclosures. Also, the fair value estimates for deposits do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market.

Accounting Policies (Policies)

Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation – The accompanying unaudited consolidated financial statements reflect all adjustments (all of which are normal and recurring in nature) which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position, the results of operations, changes in comprehensive income, changes in shareholders’ equity, and cash flows for the periods presented. These unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (SEC) and, therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been omitted. The Notes to the Consolidated Financial Statements appearing in 1st Source Corporation’s Annual Report on Form 10-K ( 2018 Annual Report), which include descriptions of significant accounting policies, should be read in conjunction with these interim financial statements. The Consolidated Statement of Financial Condition at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current period presentation.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements – Financial statements prepared in accordance with GAAP require the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.
Loans and Leases	Loans and Leases – Loans are stated at the principal amount outstanding, net of unamortized deferred loan origination fees and costs and net of unearned income. Interest income is accrued as earned based on unpaid principal balances. Origination fees and direct loan and lease origination costs are deferred, and the net amount amortized to interest income over the estimated life of the related loan or lease. Loan commitment fees are deferred and amortized into other income over the commitment period. Direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, net of unamortized deferred lease origination fees and costs and unearned income. Interest income on direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Effective January 1, 2019, as part of the new leasing standard, only those costs incurred as a direct result of closing a lease transaction can be capitalized. All existing deferrals will continue to be amortized over the estimated life of the lease while all new incremental direct costs will be expensed immediately. The accrual of interest on loans and leases is discontinued when a loan or lease becomes contractually delinquent for 90 days, or when an individual analysis of a borrower’s credit worthiness indicates a credit should be placed on nonperforming status, except for residential mortgage loans and consumer loans that are well secured and in the process of collection. Residential mortgage loans are placed on nonaccrual at the time the loan is placed in foreclosure. When interest accruals are discontinued, interest credited to income in the current year is reversed and interest accrued in the prior year is charged to the reserve for loan and lease losses. However, in some cases, the Company may elect to continue the accrual of interest when the net realizable value of collateral is sufficient to cover the principal and accrued interest. When a loan or lease is classified as nonaccrual and the future collectability of the recorded loan or lease balance is doubtful, collections on interest and principal are applied as a reduction to principal outstanding. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured, which is typically evidenced by a sustained repayment performance of at least six months . A loan or lease is considered impaired, based on current information and events, if it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan or lease agreement. Interest on impaired loans and leases, which are not classified as nonaccrual, is recognized on the accrual basis. The Company evaluates loans and leases exceeding $100,000 for impairment and establishes a specific reserve as a component of the reserve for loan and lease losses when it is probable all amounts due will not be collected pursuant to the contractual terms of the loan or lease and the recorded investment in the loan or lease exceeds its fair value. Loans and leases that have been modified and economic concessions have been granted to borrowers who have experienced financial difficulties are considered a troubled debt restructuring (TDR) and, by definition, are deemed an impaired loan. These concessions typically result from the Company’s loss mitigation activities and may include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months. When the Company modifies loans and leases in a TDR, it evaluates any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan or lease agreement, or uses the current fair value of the collateral, less selling costs for collateral dependent loans. If the Company determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through a reserve for loan and lease losses estimate or a charge-off to the reserve for loan and lease losses. In periods subsequent to modification, the Company evaluates all TDRs, including those that have payment defaults, for possible impairment and recognizes impairment through the reserve for loan and lease losses.
Equipment Owned Under Operating Leases	Equipment Owned Under Operating Leases – As a lessor, the Company finances various types of construction equipment, medium and heavy duty trucks, automobiles and other equipment under leases classified as operating leases. The equipment underlying the operating leases is reported at cost, net of accumulated depreciation, in the Consolidated Statements of Financial Condition. These operating lease arrangements require the lessee to make a fixed monthly rental payment over a specified lease term generally ranging from three to seven years . Revenue consists of the contractual lease payments and is recognized on a straight-line basis over the lease term and reported as noninterest income. Leased assets are being depreciated on a straight-line method over the lease term to the estimate of the equipment’s fair market value at lease termination, also referred to as “residual” value. The depreciation of these operating lease assets is reported as Noninterest Expense on the Consolidated Statements of Income. For automobile leases, fair value is based upon published industry market guides. For other equipment leases, fair value may be based upon observable market prices, third-party valuations, or prices received on sales of similar assets at the end of the lease term. These residual values are reviewed annually to ensure the recorded amount does not exceed the fair market value at the lease termination. At the end of the lease, the operating lease asset is either purchased by the lessee or returned to the Company. The Company is responsible for the payment of personal property taxes which is reported as Other Expense on the Consolidated Statements of Income. The lessee is responsible for reimbursing the Company for personal property taxes which is reported as Other Income on the Consolidated Statements of Income. The Company excludes sales taxes and other similar taxes from being reported as lease revenue with an associated expense.
Lease Commitments	Lease Commitments – The Company leases certain banking center locations, office space, land and billboards. In determining whether a contract contains a lease, the Company examines the contract to ensure an asset was specifically identified and that the Company has control of use over the asset. To determine whether a lease is classified as operating or finance, the Company performs an economic life test on all building leases with greater than a twenty year term. Further, the Company performs a fair value test to identify any leases that have a present value of future lease payments over the lease term that is greater than 90% of the fair value of the building. The Company only capitalizes leases with an initial lease liability equal to or over $2,000 . At lease inception, the Company determines the lease term by adding together the minimum lease term and all optional renewal periods that it is reasonably certain to renew. The Company determines this on each lease by considering all relevant contract-based, asset-based, market-based, and entity-based economic factors. Generally, the exercise of lease renewal options is at the Company’s sole discretion. The lease term is used to determine whether a lease is operating or finance and is used to calculate straight-line rent expense. Additionally, the depreciable life of leasehold improvements is limited by the expected lease term. Operating lease rentals are expensed on a straight-line basis over the life of the lease beginning on the date the Company takes possession of the property. Rent expense and variable lease costs are included in Net Occupancy Expense on the Company’s Consolidated Statements of Income. Included in variable lease costs are leases with rent escalations based on recent financial indices, such as the Consumer Price Index, where the Company estimates future rent increases and records the actual difference to variable costs. Certain leases require the Company to pay common area maintenance, real estate taxes, insurance and other operating expenses associated with the leases premises. These expenses are classified in Net Occupancy Expense, consistent with similar costs for owned locations. There are no residual value guarantees or restrictions or covenants imposed by leases. The Company accounts for lease and nonlease components together as a single lease component by class of underlying asset. Operating lease obligations with an initial term longer than 12 months are recorded with a right of use asset and a lease liability in the Consolidated Statements of Financial Condition. Operating lease obligations with an initial term of 12 months or less are expensed in the Consolidated Statements of Income on a straight-line basis over the lease term. The discount rate used in determining the lease liability and related right of use asset is based upon what would be obtained by the Company for similar loans as an incremental rate as of the date of origination or renewal.
Revenue Recognition	Revenue Recognition – The Company recognizes revenues as they are earned based on contractual terms, as transactions occur, or as services are provided and collectability is reasonably assured. The Company’s principal source of revenue is interest income from loans and leases and investment securities. The Company also earns noninterest income from various banking and financial services offered primarily through 1st Source Bank (Bank) and its subsidiaries. Interest Income – The largest source of revenue for the Company is interest income which is primarily recognized on an accrual basis according to nondiscretionary formulas in written contracts, such as loan and lease agreements or investment securities contracts. Noninterest Income – The Company earns noninterest income through a variety of financial and transaction services provided to corporate and consumer clients such as trust and wealth advisory, deposit account, debit card, mortgage banking, insurance, and equipment rental services. Revenue is recorded for noninterest income based on the contractual terms for the service or transaction performed. In certain circumstances, noninterest income is reported net of associated expenses.

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
	Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Schedule of investment securities available-for-sale	The following table shows investment securities available-for-sale. (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2019 U.S. Treasury and Federal agencies securities $ 537,895 $ 737 $ (3,226 ) $ 535,406 U.S. States and political subdivisions securities 88,501 518 (263 ) 88,756 Mortgage-backed securities — Federal agencies 332,342 1,520 (3,921 ) 329,941 Corporate debt securities 47,860 312 (166 ) 48,006 Foreign government and other securities 700 — — 700 Total debt securities available-for-sale $ 1,007,298 $ 3,087 $ (7,576 ) $ 1,002,809 December 31, 2018 U.S. Treasury and Federal agencies securities $ 537,913 $ 196 $ (6,886 ) $ 531,223 U.S. States and political subdivisions securities 95,346 172 (936 ) 94,582 Mortgage-backed securities — Federal agencies 324,390 718 (6,875 ) 318,233 Corporate debt securities 45,843 — (451 ) 45,392 Foreign government and other securities 700 — (1 ) 699 Total debt securities available-for-sale $ 1,004,192 $ 1,086 $ (15,149 ) $ 990,129
Schedule of contractual maturities of investments in debt securities available-for-sale	The following table shows the contractual maturities of investments in debt securities available-for-sale at March 31, 2019 . Expected maturities will differ from contractual maturities, because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 141,236 $ 140,922 Due after one year through five years 526,676 524,765 Due after five years through ten years 7,044 7,181 Due after ten years — — Mortgage-backed securities 332,342 329,941 Total debt securities available-for-sale $ 1,007,298 $ 1,002,809
Schedule of gross unrealized losses and fair value by investment category and age	The following table summarizes gross unrealized losses and fair value by investment category and age. At March 31, 2019 , the Company's available-for-sale securities portfolio consisted of 620 securities, 322 of which were in an unrealized loss position. Less than 12 Months 12 months or Longer Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses March 31, 2019 U.S. Treasury and Federal agencies securities $ — $ — $ 417,740 $ (3,226 ) $ 417,740 $ (3,226 ) U.S. States and political subdivisions securities 1,367 (1 ) 32,560 (262 ) 33,927 (263 ) Mortgage-backed securities - Federal agencies 26,788 (73 ) 192,836 (3,848 ) 219,624 (3,921 ) Corporate debt securities 4,962 — 18,007 (166 ) 22,969 (166 ) Foreign government and other securities 700 — — — 700 — Total debt securities available-for-sale $ 33,817 $ (74 ) $ 661,143 $ (7,502 ) $ 694,960 $ (7,576 ) December 31, 2018 U.S. Treasury and Federal agencies securities $ 55,491 $ (177 ) $ 424,269 $ (6,709 ) $ 479,760 $ (6,886 ) U.S. States and political subdivisions securities 21,059 (61 ) 45,365 (875 ) 66,424 (936 ) Mortgage-backed securities - Federal agencies 65,554 (511 ) 198,221 (6,364 ) 263,775 (6,875 ) Corporate debt securities 21,496 (143 ) 23,896 (308 ) 45,392 (451 ) Foreign government and other securities 699 (1 ) — — 699 (1 ) Total debt securities available-for-sale $ 164,299 $ (893 ) $ 691,751 $ (14,256 ) $ 856,050 $ (15,149 )
Schedule of gross realized gains and losses from securities available-for-sale portfolio	The following table shows the gross realized gains and losses from the available-for-sale debt securities portfolio. Realized gains and losses of all securities are computed using the specific identification cost basis. Three Months Ended (Dollars in thousands) 2019 2018 Gross realized gains $ — $ 2 Gross realized losses — (347 ) OTTI losses — — Net realized gains (losses) $ — $ (345 )

Loan and Lease Financings (Tabl

Loan and Lease Financings (Tables)	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
Summary of the gross investment in lease financing and the components of the investment in lease financing	The following table shows the the components of the investment in direct finance leases at March 31, 2019 and December 31, 2018 . (Dollars in thousands) March 31, December 31, Direct finance leases: Minimum lease payments $ 249,069 $ 257,398 Estimated unguaranteed residual values 41 41 Less: Unearned income (45,420 ) (46,709 ) Net investment in lease financing $ 203,690 $ 210,730
Schedule of direct financing minimum lease payments receivable	The following table shows direct financing minimum lease payments receivable for the next five years 2019 through 2023 and thereafter. (Dollars in thousands) 2019 $ 39,791 2020 46,697 2021 39,067 2022 36,643 2023 31,450 Thereafter 55,421 Total $ 249,069
Schedule of credit quality grades of the recorded investment in loans and leases, segregated by class	The following table shows the credit quality grades of the recorded investment in loans and leases, segregated by class. Credit Quality Grades (Dollars in thousands) 1-6 7-12 Total March 31, 2019 Commercial and agricultural $ 1,117,440 $ 28,591 $ 1,146,031 Auto and light truck 534,407 19,671 554,078 Medium and heavy duty truck 284,208 1,423 285,631 Aircraft 802,373 28,064 830,437 Construction equipment 623,140 17,895 641,035 Commercial real estate 799,662 18,797 818,459 Total $ 4,161,230 $ 114,441 $ 4,275,671 December 31, 2018 Commercial and agricultural $ 1,043,019 $ 30,186 $ 1,073,205 Auto and light truck 528,174 31,813 559,987 Medium and heavy duty truck 281,834 1,710 283,544 Aircraft 768,442 34,669 803,111 Construction equipment 625,579 19,660 645,239 Commercial real estate 787,376 22,510 809,886 Total $ 4,034,424 $ 140,548 $ 4,174,972
Schedule of recorded investment in residential real estate and home equity and consumer loans by performing or nonperforming status	The following table shows the recorded investment in residential real estate and home equity and consumer loans by performing or nonperforming status. Nonperforming loans are those loans which are on nonaccrual status or are 90 days or more past due. (Dollars in thousands) Performing Nonperforming Total March 31, 2019 Residential real estate and home equity $ 512,927 $ 1,792 $ 514,719 Consumer 135,578 219 135,797 Total $ 648,505 $ 2,011 $ 650,516 December 31, 2018 Residential real estate and home equity $ 521,846 $ 2,009 $ 523,855 Consumer 136,423 214 136,637 Total $ 658,269 $ 2,223 $ 660,492
Schedule of recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status	The following table shows the recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status. (Dollars in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due and Accruing Total Accruing Loans Nonaccrual Total Financing Receivables March 31, 2019 Commercial and agricultural $ 1,142,979 $ 84 $ — $ — $ 1,143,063 $ 2,968 $ 1,146,031 Auto and light truck 548,752 1,024 148 — 549,924 4,154 554,078 Medium and heavy duty truck 285,539 23 — — 285,562 69 285,631 Aircraft 818,494 9,106 1,585 — 829,185 1,252 830,437 Construction equipment 639,039 580 — — 639,619 1,416 641,035 Commercial real estate 816,251 277 — — 816,528 1,931 818,459 Residential real estate and home equity 511,627 819 481 151 513,078 1,641 514,719 Consumer 134,808 629 141 28 135,606 191 135,797 Total $ 4,897,489 $ 12,542 $ 2,355 $ 179 $ 4,912,565 $ 13,622 $ 4,926,187 December 31, 2018 Commercial and agricultural $ 1,070,530 $ 22 $ — $ — $ 1,070,552 $ 2,653 $ 1,073,205 Auto and light truck 544,022 3,154 1,437 — 548,613 11,374 559,987 Medium and heavy duty truck 283,284 154 — — 283,438 106 283,544 Aircraft 790,233 4,149 1,168 — 795,550 7,561 803,111 Construction equipment 641,270 1,643 — — 642,913 2,326 645,239 Commercial real estate 807,793 109 — — 807,902 1,984 809,886 Residential real estate and home equity 520,124 1,267 455 295 522,141 1,714 523,855 Consumer 135,591 682 150 73 136,496 141 136,637 Total $ 4,792,847 $ 11,180 $ 3,210 $ 368 $ 4,807,605 $ 27,859 $ 4,835,464
Schedule of impaired loans and leases, segregated by class, and the corresponding reserve for impaired loan and lease losses	The following table shows impaired loans and leases, segregated by class, and the corresponding reserve for impaired loan and lease losses. (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Reserve March 31, 2019 With no related reserve recorded: Commercial and agricultural $ 2,269 $ 2,269 $ — Auto and light truck 590 590 — Medium and heavy duty truck — — — Aircraft 1,251 1,251 — Construction equipment 471 471 — Commercial real estate 1,117 1,117 — Residential real estate and home equity — — — Consumer — — — Total with no related reserve recorded 5,698 5,698 — With a reserve recorded: Commercial and agricultural 504 504 42 Auto and light truck 3,365 3,365 488 Medium and heavy duty truck — — — Aircraft — — — Construction equipment 922 922 149 Commercial real estate 727 727 20 Residential real estate and home equity 342 344 124 Consumer — — — Total with a reserve recorded 5,860 5,862 823 Total impaired loans $ 11,558 $ 11,560 $ 823 December 31, 2018 With no related reserve recorded: Commercial and agricultural $ 2,471 $ 2,471 $ — Auto and light truck 7,504 7,504 — Medium and heavy duty truck 106 106 — Aircraft 556 556 — Construction equipment 905 905 — Commercial real estate 1,131 1,131 — Residential real estate and home equity — — — Consumer — — — Total with no related reserve recorded 12,673 12,673 — With a reserve recorded: Commercial and agricultural — — — Auto and light truck 3,840 3,840 372 Medium and heavy duty truck — — — Aircraft 7,004 7,004 1,255 Construction equipment 1,340 1,340 279 Commercial real estate 759 759 51 Residential real estate and home equity 344 346 126 Consumer — — — Total with a reserve recorded 13,287 13,289 2,083 Total impaired loans $ 25,960 $ 25,962 $ 2,083
Schedule of average recorded investment and interest income recognized on impaired loans and leases, segregated by class	The following table shows average recorded investment and interest income recognized on impaired loans and leases, segregated by class. Three Months Ended March 31, 2019 2018 (Dollars in thousands) Average Recorded Investment Interest Income Average Recorded Investment Interest Income Commercial and agricultural $ 2,821 $ — $ 2,843 $ — Auto and light truck 5,003 — 7,827 — Medium and heavy duty truck 54 — 347 — Aircraft 5,445 — 3,069 — Construction equipment 1,929 — 1,330 — Commercial real estate 1,859 — 3,696 — Residential real estate and home equity 343 5 350 4 Consumer — — — — Total $ 17,454 $ 5 $ 19,462 $ 4
Schedule of recorded investment in loans and leases classified as troubled debt restructuring	The following table shows the recorded investment of loans and leases classified as troubled debt restructurings as of March 31, 2019 and December 31, 2018 . (Dollars in thousands) March 31, December 31, Performing TDRs $ 342 $ 344 Nonperforming TDRs 229 316 Total TDRs $ 571 $ 660

Reserve for Loan and Lease Lo_2

Reserve for Loan and Lease Losses (Tables)	3 Months Ended
	Mar. 31, 2019
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Schedule of changes in reserve for loan and lease losses, segregated by class	The following table shows the changes in the reserve for loan and lease losses, segregated by class, for the three months ended March 31, 2019 and 2018 . (Dollars in thousands) Commercial and agricultural loans Auto and light truck Medium and heavy duty truck Aircraft Construction Commercial real estate Residential real estate and home equity Consumer loans Total March 31, 2019 Balance, beginning of period $ 17,063 $ 14,689 $ 4,303 $ 33,047 $ 10,922 $ 15,705 $ 3,425 $ 1,315 $ 100,469 Charge-offs 79 409 — 3,000 195 — 21 250 3,954 Recoveries 34 9 — 185 104 9 3 75 419 Net charge-offs (recoveries) 45 400 — 2,815 91 (9 ) 18 175 3,535 Provision (recovery of provision) 1,289 (30 ) 106 3,208 52 120 (21 ) 194 4,918 Balance, end of period $ 18,307 $ 14,259 $ 4,409 $ 33,440 $ 10,883 $ 15,834 $ 3,386 $ 1,334 $ 101,852 March 31, 2018 Balance, beginning of period $ 16,228 $ 10,103 $ 4,844 $ 34,619 $ 9,343 $ 14,792 $ 3,666 $ 1,288 $ 94,883 Charge-offs 25 316 — 29 5 7 11 163 556 Recoveries 49 6 — 44 19 21 6 73 218 Net charge-offs (recoveries) (24 ) 310 — (15 ) (14 ) (14 ) 5 90 338 Provision (recovery of provision) 1,357 1,017 (351 ) 202 1,560 (36 ) (96 ) 133 3,786 Balance, end of period $ 17,609 $ 10,810 $ 4,493 $ 34,836 $ 10,917 $ 14,770 $ 3,565 $ 1,331 $ 98,331 The following table shows the reserve for loan and lease losses and recorded investment in loans and leases, segregated by class, separated between individually and collectively evaluated for impairment as of March 31, 2019 and December 31, 2018 . (Dollars in thousands) Commercial and agricultural loans Auto and light truck Medium and heavy duty truck Aircraft Construction Commercial real estate Residential real estate and home equity Consumer loans Total March 31, 2019 Reserve for loan and lease losses Ending balance, individually evaluated for impairment $ 42 $ 488 $ — $ — $ 149 $ 20 $ 124 $ — $ 823 Ending balance, collectively evaluated for impairment 18,265 13,771 4,409 33,440 10,734 15,814 3,262 1,334 101,029 Total reserve for loan and lease losses $ 18,307 $ 14,259 $ 4,409 $ 33,440 $ 10,883 $ 15,834 $ 3,386 $ 1,334 $ 101,852 Recorded investment in loans Ending balance, individually evaluated for impairment $ 2,773 $ 3,955 $ — $ 1,251 $ 1,393 $ 1,844 $ 342 $ — $ 11,558 Ending balance, collectively evaluated for impairment 1,143,258 550,123 285,631 829,186 639,642 816,615 514,377 135,797 4,914,629 Total recorded investment in loans $ 1,146,031 $ 554,078 $ 285,631 $ 830,437 $ 641,035 $ 818,459 $ 514,719 $ 135,797 $ 4,926,187 December 31, 2018 Reserve for loan and lease losses Ending balance, individually evaluated for impairment $ — $ 372 $ — $ 1,255 $ 279 $ 51 $ 126 $ — $ 2,083 Ending balance, collectively evaluated for impairment 17,063 14,317 4,303 31,792 10,643 15,654 3,299 1,315 98,386 Total reserve for loan and lease losses $ 17,063 $ 14,689 $ 4,303 $ 33,047 $ 10,922 $ 15,705 $ 3,425 $ 1,315 $ 100,469 Recorded investment in loans Ending balance, individually evaluated for impairment $ 2,471 $ 11,344 $ 106 $ 7,560 $ 2,245 $ 1,890 $ 344 $ — $ 25,960 Ending balance, collectively evaluated for impairment 1,070,734 548,643 283,438 795,551 642,994 807,996 523,511 136,637 4,809,504 Total recorded investment in loans $ 1,073,205 $ 559,987 $ 283,544 $ 803,111 $ 645,239 $ 809,886 $ 523,855 $ 136,637 $ 4,835,464

Operating Leases (Tables)

Operating Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Operating Leases [Abstract]
Schedule of gross investment in operating lease equipment and accumulated depreciation	The following table shows the summary of the gross investment in operating lease equipment and accumulated depreciation. (Dollars in thousands) March 31, December 31, Operating leases: Gross investment in operating lease financing $ 198,984 $ 199,954 Accumulated depreciation (67,390 ) (65,514 ) Net investment in operating lease financing $ 131,594 $ 134,440
Minimum future lease rental payments due from clients	The following table shows minimum future lease rental payments due from clients on operating lease equipment at March 31, 2019 . (Dollars in thousands) 2019 $ 23,462 2020 33,623 2021 19,570 2022 11,578 2023 6,037 Thereafter 2,774 Total $ 97,044

Mortgage Servicing Rights (Tabl

Mortgage Servicing Rights (Tables)	3 Months Ended
	Mar. 31, 2019
Transfers and Servicing of Financial Assets [Abstract]
Schedule of changes in carrying value of mortgage servicing rights and associated valuation allowance	The following table shows changes in the carrying value of MSRs and the associated valuation allowance. Three Months Ended (Dollars in thousands) 2019 2018 Mortgage servicing rights: Balance at beginning of period $ 4,283 $ 4,349 Additions 197 243 Amortization (233 ) (236 ) Sales — — Carrying value before valuation allowance at end of period 4,247 4,356 Valuation allowance: Balance at beginning of period — — Impairment recoveries — — Balance at end of period $ — $ — Net carrying value of mortgage servicing rights at end of period $ 4,247 $ 4,356 Fair value of mortgage servicing rights at end of period $ 6,677 $ 7,389

Commitments and Financial Ins_2

Commitments and Financial Instruments with Off-Balance-Sheet Risk (Tables)	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Operating lease right of use assets and operating lease liabilities	The following table shows operating lease right of use assets and operating lease liabilities as of March 31, 2019. (Dollars in thousands) Statement of Financial Condition classification March 31, Operating lease right of use assets Accrued income and other assets $ 10,409 Operating lease liabilities Accrued expenses and other liabilities $ 10,801
Components of operating lease expense	The following table shows the components of operating leases expense for the three months ended March 31, 2019. (Dollars in thousands) Statement of Income classification Three Months Ended Operating lease cost Net occupancy expense $ 878 Short-term lease cost Net occupancy expense 3 Variable lease cost Net occupancy expense — Total operating lease cost $ 881
Future minimum rental commitments for noncancellable operating leases	The following table shows future minimum rental commitments for all noncancellable operating leases for the next five years and thereafter. (Dollars in thousands) 2019 $ 2,479 2020 3,581 2021 2,391 2022 1,133 2023 425 Thereafter 1,706 Total lease payments 11,715 Less: imputed interest (914 ) Present value of operating lease liabilities $ 10,801
Operating lease weighted average remaining term, discount rate, and supplemental cash flows information	The following table shows the weighted average remaining operating lease term, the weighted average discount rate and supplemental Consolidated Statement of Cash Flows information for operating leases at March 31, 2019. (Dollars in thousands) March 31, Weighted average remaining lease term 4.89 years Weighted average discount rate 3.02 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 948
Schedule of financial instruments whose contract amounts represent credit risk	The following table shows financial instruments whose contract amounts represent credit risk. (Dollars in thousands) March 31, 2019 December 31, 2018 Amounts of commitments: Loan commitments to extend credit $ 1,068,340 $ 1,095,053 Standby letters of credit $ 29,830 $ 31,133 Commercial and similar letters of credit $ 2,427 $ 2,500

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of amounts of non-hedging derivative financial instruments	The following table shows the amounts of non-hedging derivative financial instruments. Asset derivatives Liability derivatives (Dollars in thousands) Notional or contractual amount Statement of Financial Condition classification Fair value Statement of Financial Condition classification Fair value March 31, 2019 Interest rate swap contracts $ 908,503 Other assets $ 10,375 Other liabilities $ 10,558 Loan commitments 11,671 Mortgages held for sale 189 N/A — Forward contracts - mortgage loan 16,334 N/A — Mortgages held for sale 125 Total $ 936,508 $ 10,564 $ 10,683 December 31, 2018 Interest rate swap contracts $ 855,848 Other assets $ 7,124 Other liabilities $ 7,250 Loan commitments 5,871 Mortgages held for sale 112 N/A — Forward contracts - mortgage loan 14,087 N/A — Mortgages held for sale 135 Total $ 875,806 $ 7,236 $ 7,385
Schedule of amounts included in the consolidated statements of income for non-hedging derivative financial instruments	The following table shows the amounts included in the Statements of Income for non-hedging derivative financial instruments. Gain (loss) Three Months Ended (Dollars in thousands) Statement of Income classification 2019 2018 Interest rate swap contracts Other expense $ (57 ) $ (1 ) Interest rate swap contracts Other income 279 333 Loan commitments Mortgage banking 77 (4 ) Forward contracts - mortgage loan Mortgage banking 10 3 Total $ 309 $ 331
Schedule of offsetting of financial assets and derivative assets	The following table shows the offsetting of financial assets and derivative assets. Gross Amounts Not Offset in the Statement of Financial Condition (Dollars in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Assets Presented in the Statement of Financial Condition Financial Instruments Cash Collateral Received Net Amount March 31, 2019 Interest rate swaps $ 10,375 $ — $ 10,375 $ — $ 90 $ 10,285 December 31, 2018 Interest rate swaps $ 7,128 $ 4 $ 7,124 $ 177 $ 610 $ 6,337
Schedule of offsetting of financial liabilities and derivative liabilities	The following table shows the offsetting of financial liabilities and derivative liabilities. Gross Amounts Not Offset in the Statement of Financial Condition (Dollars in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Liabilities Presented in the Statement of Financial Condition Financial Instruments Cash Collateral Pledged Net Amount March 31, 2019 Interest rate swaps $ 10,558 $ — $ 10,558 $ 9,761 $ — $ 797 Repurchase agreements 112,172 — 112,172 112,172 — — Total $ 122,730 $ — $ 122,730 $ 121,933 $ — $ 797 December 31, 2018 Interest rate swaps $ 7,254 $ 4 $ 7,250 $ 1,700 $ — $ 5,550 Repurchase agreements 103,627 — 103,627 103,627 — — Total $ 110,881 $ 4 $ 110,877 $ 105,327 $ — $ 5,550

Variable Interest Entities Vari

Variable Interest Entities Variable Interest Entities (Tables)	3 Months Ended
	Mar. 31, 2019
Variable Interest Entities [Abstract]
Schedule of unconsolidated variable interest entities	The following table provides a summary of investments in affordable housing, community development and renewable energy VIEs that the Company has not consolidated. (Dollars in thousands) March 31, 2019 December 31, 2018 Investment carrying amount $ 12,999 $ 15,083 Unfunded capital and other commitments 4,692 6,449 Maximum exposure to loss 40,199 40,705
Summary of subordinated notes	The following table shows subordinated notes at March 31, 2019 . (Dollars in thousands) Amount of Subordinated Notes Interest Rate Maturity Date June 2007 issuance (1) $ 41,238 7.22 % 6/15/2037 August 2007 issuance (2) 17,526 4.27 % 9/15/2037 Total $ 58,764 (1) Fixed rate through life of debt. (2) 3-Month LIBOR + 1.48% through remaining life of debt.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Schedule of reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share	The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share. Three Months Ended (Dollars in thousands - except per share amounts) 2019 2018 Distributed earnings allocated to common stock $ 6,966 $ 5,704 Undistributed earnings allocated to common stock 15,102 13,278 Net earnings allocated to common stock 22,068 18,982 Net earnings allocated to participating securities 128 134 Net income allocated to common stock and participating securities $ 22,196 $ 19,116 Weighted average shares outstanding for basic earnings per common share 25,759,186 25,950,386 Dilutive effect of stock compensation — — Weighted average shares outstanding for diluted earnings per common share 25,759,186 25,950,386 Basic earnings per common share $ 0.86 $ 0.73 Diluted earnings per common share $ 0.86 $ 0.73

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of reclassifications out of accumulated other comprehensive income	The following table presents reclassifications out of accumulated other comprehensive income (loss) related to unrealized gains and losses on available-for-sale securities. Three Months Ended March 31, Affected Line Item in the Statements of Income (Dollars in thousands) 2019 2018 Realized losses included in net income $ — $ (345 ) Losses on investment securities available-for-sale — (345 ) Income before income taxes Tax effect — 83 Income tax expense Net of tax $ — $ (262 ) Net income

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2019
Fair value measurements
Schedule of differences between the fair value carrying amount of mortgages held for sale measured at fair value and the aggregate unpaid principal amount	The following table shows the differences between the fair value carrying amount of mortgages held for sale measured at fair value and the aggregate unpaid principal amount the Company is contractually entitled to receive at maturity. (Dollars in thousands) Fair value carrying amount Aggregate unpaid principal Excess of fair value carrying amount over (under) unpaid principal March 31, 2019 Mortgages held for sale reported at fair value $ 9,210 $ 8,970 $ 240 (1) December 31, 2018 Mortgages held for sale reported at fair value $ 11,290 $ 11,076 $ 214 (1) (1) The excess of fair value carrying amount over (under) unpaid principal is included in mortgage banking income and includes changes in fair value at and subsequent to funding and gains and losses on the related loan commitment prior to funding.
Schedule of assets and liabilities measured at fair value on a recurring basis	The following table shows the balance of assets and liabilities measured at fair value on a recurring basis. (Dollars in thousands) Level 1 Level 2 Level 3 Total March 31, 2019 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 33,895 $ 501,511 $ — $ 535,406 U.S. States and political subdivisions securities — 83,692 5,064 88,756 Mortgage-backed securities — Federal agencies — 329,941 — 329,941 Corporate debt securities — 48,006 — 48,006 Foreign government and other securities — 700 — 700 Total debt securities available-for-sale 33,895 963,850 5,064 1,002,809 Mortgages held for sale — 9,210 — 9,210 Accrued income and other assets (interest rate swap agreements) — 10,375 — 10,375 Total $ 33,895 $ 983,435 $ 5,064 $ 1,022,394 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 10,558 $ — $ 10,558 Total $ — $ 10,558 $ — $ 10,558 December 31, 2018 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 33,746 $ 497,477 $ — $ 531,223 U.S. States and political subdivisions securities — 93,557 1,025 94,582 Mortgage-backed securities — Federal agencies — 318,233 — 318,233 Corporate debt securities — 45,392 — 45,392 Foreign government and other securities — 699 — 699 Total debt securities available-for-sale 33,746 955,358 1,025 990,129 Mortgages held for sale — 11,290 — 11,290 Accrued income and other assets (interest rate swap agreements) — 7,124 — 7,124 Total $ 33,746 $ 973,772 $ 1,025 $ 1,008,543 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 7,250 $ — $ 7,250 Total $ — $ 7,250 $ — $ 7,250
Schedule of changes in investment securities available-for-sale Level 3 assets measured at fair value on a recurring basis	The following table shows changes in Level 3 assets measured at fair value on a recurring basis for the quarter ended March 31, 2019 and 2018 . (Dollars in thousands) U.S. States and political subdivisions securities Foreign government and other securities Investment securities available-for-sale Beginning balance January 1, 2019 $ 1,025 $ — $ 1,025 Total gains or losses (realized/unrealized): Included in earnings — — — Included in other comprehensive income 19 — 19 Purchases 4,100 — 4,100 Issuances — — — Sales — — — Settlements — — — Maturities (80 ) — (80 ) Transfers into Level 3 — — — Transfers out of Level 3 — — — Ending balance March 31, 2019 $ 5,064 $ — $ 5,064 Beginning balance January 1, 2018 $ 2,155 $ 710 $ 2,865 Total gains or losses (realized/unrealized): Included in earnings — — — Included in other comprehensive income — (2 ) (2 ) Purchases — — — Issuances — — — Sales — — — Settlements — — — Maturities — — — Transfers into Level 3 — — — Transfers out of Level 3 — — — Ending balance March 31, 2018 $ 2,155 $ 708 $ 2,863
Schedule of carrying value of assets measured at fair value on a non-recurring basis	The following table shows the carrying value of assets measured at fair value on a non-recurring basis. (Dollars in thousands) Level 1 Level 2 Level 3 Total March 31, 2019 Impaired loans - collateral based $ — $ — $ 1,578 $ 1,578 Accrued income and other assets (mortgage servicing rights) — — 4,247 4,247 Accrued income and other assets (repossessions) — — 10,411 10,411 Accrued income and other assets (other real estate) — — 417 417 Total $ — $ — $ 16,653 $ 16,653 December 31, 2018 Impaired loans - collateral based $ — $ — $ 7,306 $ 7,306 Accrued income and other assets (mortgage servicing rights) — — 4,283 4,283 Accrued income and other assets (repossessions) — — 6,666 6,666 Accrued income and other assets (other real estate) — — 299 299 Total $ — $ — $ 18,554 $ 18,554
Schedule of fair values of financial instruments	The following table shows the fair values of the Company’s financial instruments. (Dollars in thousands) Carrying or Contract Value Fair Value Level 1 Level 2 Level 3 March 31, 2019 Assets: Cash and due from banks $ 64,619 $ 64,619 $ 64,619 $ — $ — Federal funds sold and interest bearing deposits with other banks 3,062 3,062 3,062 — — Investment securities, available-for-sale 1,002,809 1,002,809 33,895 963,850 5,064 Other investments 28,404 28,404 28,404 — — Mortgages held for sale 9,210 9,210 — 9,210 — Loans and leases, net of reserve for loan and lease losses 4,824,335 4,802,938 — — 4,802,938 Mortgage servicing rights 4,247 6,677 — — 6,677 Accrued interest receivable 21,576 21,576 — 21,576 — Interest rate swaps 10,375 10,375 — 10,375 — Liabilities: Deposits $ 5,124,091 $ 5,121,098 $ 3,559,051 $ 1,562,047 $ — Short-term borrowings 255,388 255,388 148,284 107,104 — Long-term debt and mandatorily redeemable securities 71,439 69,724 — 69,724 — Subordinated notes 58,764 55,484 — 55,484 — Accrued interest payable 11,377 11,377 — 11,377 — Interest rate swaps 10,558 10,558 — 10,558 — Off-balance-sheet instruments * — 247 — 247 — December 31, 2018 Assets: Cash and due from banks $ 94,907 $ 94,907 $ 94,907 $ — $ — Federal funds sold and interest bearing deposits with other banks 4,172 4,172 4,172 — — Investment securities, available-for-sale 990,129 990,129 33,746 955,358 1,025 Other investments 28,404 28,404 28,404 — — Mortgages held for sale 11,290 11,290 — 11,290 — Loans and leases, net of reserve for loan and lease losses 4,734,995 4,689,267 — — 4,689,267 Mortgage servicing rights 4,283 7,238 — — 7,238 Accrued interest receivable 18,880 18,880 — 18,880 — Interest rate swaps 7,124 7,124 — 7,124 — Liabilities: Deposits $ 5,122,322 $ 5,111,711 $ 3,654,556 $ 1,457,155 $ — Short-term borrowings 199,344 199,344 113,734 85,610 — Long-term debt and mandatorily redeemable securities 71,123 68,751 — 68,751 — Subordinated notes 58,764 45,874 — 45,874 — Accrued interest payable 8,950 8,950 — 8,950 — Interest rate swaps 7,250 7,250 — 7,250 — Off-balance-sheet instruments * — 259 — 259 — * Represents estimated cash outflows required to currently settle the obligations at current market rates.
Recurring
Fair value measurements
Schedule of valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis	The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis. (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Range of Inputs March 31, 2019 Debt securities available-for sale Direct placement municipal securities $ 5,064 Discounted cash flows Credit spread assumption 2.51% - 2.94% December 31, 2018 Debt securities available-for sale Direct placement municipal securities $ 1,025 Discounted cash flows Credit spread assumption 0.17% - 3.02%
Non-recurring
Fair value measurements
Schedule of valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis	The following table below shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a non-recurring basis. (Dollars in thousands) Carrying Value Fair Value Valuation Methodology Unobservable Inputs Range of Inputs March 31, 2019 Impaired loans $ 1,578 $ 1,578 Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 20% - 100% Mortgage servicing rights 4,247 6,677 Discounted cash flows Constant prepayment rate (CPR) 9.1% - 25.9% Discount rate 9.8% - 12.6% Repossessions 10,411 10,883 Appraisals, trade publications and auction values Discount for lack of marketability 0% - 6% Other real estate 417 424 Appraisals Discount for lack of marketability 0% - 9% December 31, 2018 Impaired loans $ 7,306 $ 7,306 Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 20% - 35% Mortgage servicing rights 4,283 7,238 Discounted cash flows Constant prepayment rate (CPR) 7.2% - 24.8% Discount rate 10.3 % - 13.1% Repossessions 6,666 6,991 Appraisals, trade publications and auction values Discount for lack of marketability 4% - 6% Other real estate 299 305 Appraisals Discount for lack of marketability 0% - 10%

Accounting Policies (Details)

Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2019USD ($)Rate
Summary of Significant Accounting Policies [Line Items]
Minimum lease liability for capitalization	$ 2,000
Residual value guarantees or restriction or covenants imposed by leases	0
Minimum
Summary of Significant Accounting Policies [Line Items]
Period of sustained performance required to change from non-performing to performing status	6 months
Amount necessary for impairment evaluation	$ 100,000
Lessor operating lease term	3 years
Economic life test to determine lease classification	twenty year
Fair value test percentage of the fair value of the asset | Rate	90.00%
Maximum
Summary of Significant Accounting Policies [Line Items]
Lessor operating lease term	7 years

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings	$ (414,428)		$ (398,980)
Accounting Standards Update 2017-08 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings		$ (300)

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Due in one year or less	$ 141,236
Due after one year through five years	526,676
Due after five years through ten years	7,044
Due after ten years	0
Mortgage-backed securities	332,342
Total debt securities available-for-sale	1,007,298	$ 1,004,192
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Due in one year or less	140,922
Due after one year through five years	524,765
Due after five years through ten years	7,181
Due after ten years	0
Mortgage-backed securities	329,941
Total debt securities available-for-sale	1,002,809	990,129
U.S. Treasury and Federal agencies securities
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Total debt securities available-for-sale	537,895	537,913
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	535,406	531,223
U.S. States and political subdivisions securities
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Total debt securities available-for-sale	88,501	95,346
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	88,756	94,582
Mortgage-backed securities - Federal agencies
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Total debt securities available-for-sale	332,342	324,390
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	329,941	318,233
Corporate debt securities
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Total debt securities available-for-sale	47,860	45,843
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	48,006	45,392
Foreign government and other securities
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Total debt securities available-for-sale	700	700
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	$ 700	$ 699

Investment Securities (Details

Investment Securities (Details 2) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	$ 1,007,298		$ 1,004,192
Gross Unrealized Gains	3,087		1,086
Gross Unrealized Losses	(7,576)		(15,149)
Investment securities available-for-sale	1,002,809		990,129
Fair Value
Less than 12 Months	33,817		164,299
12 months or Longer	661,143		691,751
Total fair value	694,960		856,050
Unrealized Losses
Less than 12 Months	(74)		(893)
12 months or Longer	(7,502)		(14,256)
Total unrealized losses	(7,576)		(15,149)
Gross realized gains and losses
Gross realized gains	0	$ 2
Gross realized losses	0	(347)
OTTI losses	0	0
Net realized gains (losses)	0	$ (345)
Investment securities pledged as collateral	$ 257,940		242,310
Number of available-for-sale debt securities	620
Number of available-for-sale debt securities in an unrealized loss position	322
U.S. Treasury and Federal agencies securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	$ 537,895		537,913
Gross Unrealized Gains	737		196
Gross Unrealized Losses	(3,226)		(6,886)
Investment securities available-for-sale	535,406		531,223
Fair Value
Less than 12 Months	0		55,491
12 months or Longer	417,740		424,269
Total fair value	417,740		479,760
Unrealized Losses
Less than 12 Months	0		(177)
12 months or Longer	(3,226)		(6,709)
Total unrealized losses	(3,226)		(6,886)
U.S. States and political subdivisions securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	88,501		95,346
Gross Unrealized Gains	518		172
Gross Unrealized Losses	(263)		(936)
Investment securities available-for-sale	88,756		94,582
Fair Value
Less than 12 Months	1,367		21,059
12 months or Longer	32,560		45,365
Total fair value	33,927		66,424
Unrealized Losses
Less than 12 Months	(1)		(61)
12 months or Longer	(262)		(875)
Total unrealized losses	(263)		(936)
Mortgage-backed securities - Federal agencies
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	332,342		324,390
Gross Unrealized Gains	1,520		718
Gross Unrealized Losses	(3,921)		(6,875)
Investment securities available-for-sale	329,941		318,233
Fair Value
Less than 12 Months	26,788		65,554
12 months or Longer	192,836		198,221
Total fair value	219,624		263,775
Unrealized Losses
Less than 12 Months	(73)		(511)
12 months or Longer	(3,848)		(6,364)
Total unrealized losses	(3,921)		(6,875)
Corporate debt securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	47,860		45,843
Gross Unrealized Gains	312		0
Gross Unrealized Losses	(166)		(451)
Investment securities available-for-sale	48,006		45,392
Fair Value
Less than 12 Months	4,962		21,496
12 months or Longer	18,007		23,896
Total fair value	22,969		45,392
Unrealized Losses
Less than 12 Months	0		(143)
12 months or Longer	(166)		(308)
Total unrealized losses	(166)		(451)
Foreign government and other securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	700		700
Gross Unrealized Gains	0		0
Gross Unrealized Losses	0		(1)
Investment securities available-for-sale	700		699
Fair Value
Less than 12 Months	700		699
12 months or Longer	0		0
Total fair value	700		699
Unrealized Losses
Less than 12 Months	0		(1)
12 months or Longer	0		0
Total unrealized losses	$ 0		$ (1)

Loan and Lease Financings (Deta

Loan and Lease Financings (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Receivables [Abstract]
Minimum lease payments	$ 249,069	$ 257,398
Estimated unguaranteed residual values	41	41
Less: unearned income	(45,420)	(46,709)
Net investment in lease financing	$ 203,690	$ 210,730

Loan and Lease Financings (De_2

Loan and Lease Financings (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Direct financing minimum lease payments receivable
2019	$ 39,791
2020	46,697
2021	39,067
2022	36,643
2023	31,450
Thereafter	55,421
Total	249,069		$ 257,398
Direct finance lease interest income	$ 2,780	$ 2,570

Loan and Lease Financings (De_3

Loan and Lease Financings (Details 3)	3 Months Ended
	Mar. 31, 2019USD ($)item	Dec. 31, 2018USD ($)
Receivables [Abstract]
Number of methods to assess credit risk | item	2
Loan and Lease Financings
Recorded investment in loans and leases	$ 4,926,187,000	$ 4,835,464,000
Loan and lease financings excluding residential real estate and consumer loans
Loan and Lease Financings
Recorded investment in loans and leases	4,275,671,000	4,174,972,000
Commercial and agricultural
Loan and Lease Financings
Recorded investment in loans and leases	1,146,031,000	1,073,205,000
Auto and light truck
Loan and Lease Financings
Recorded investment in loans and leases	554,078,000	559,987,000
Medium and heavy duty truck
Loan and Lease Financings
Recorded investment in loans and leases	285,631,000	283,544,000
Aircraft
Loan and Lease Financings
Recorded investment in loans and leases	830,437,000	803,111,000
Construction equipment
Loan and Lease Financings
Recorded investment in loans and leases	641,035,000	645,239,000
Commercial real estate
Loan and Lease Financings
Recorded investment in loans and leases	818,459,000	809,886,000
Credit Quality Grades 1-6 | Loan and lease financings excluding residential real estate and consumer loans
Loan and Lease Financings
Recorded investment in loans and leases	4,161,230,000	4,034,424,000
Credit Quality Grades 1-6 | Commercial and agricultural
Loan and Lease Financings
Recorded investment in loans and leases	1,117,440,000	1,043,019,000
Credit Quality Grades 1-6 | Auto and light truck
Loan and Lease Financings
Recorded investment in loans and leases	534,407,000	528,174,000
Credit Quality Grades 1-6 | Medium and heavy duty truck
Loan and Lease Financings
Recorded investment in loans and leases	284,208,000	281,834,000
Credit Quality Grades 1-6 | Aircraft
Loan and Lease Financings
Recorded investment in loans and leases	802,373,000	768,442,000
Credit Quality Grades 1-6 | Construction equipment
Loan and Lease Financings
Recorded investment in loans and leases	623,140,000	625,579,000
Credit Quality Grades 1-6 | Commercial real estate
Loan and Lease Financings
Recorded investment in loans and leases	799,662,000	787,376,000
Credit Quality Grades 7-12
Loan and Lease Financings
Relationships reviewed quarterly as part of management's evaluation of the appropriateness of the reserve for loan and lease losses	100,000
Credit Quality Grades 7-12 | Loan and lease financings excluding residential real estate and consumer loans
Loan and Lease Financings
Recorded investment in loans and leases	114,441,000	140,548,000
Credit Quality Grades 7-12 | Commercial and agricultural
Loan and Lease Financings
Recorded investment in loans and leases	28,591,000	30,186,000
Credit Quality Grades 7-12 | Auto and light truck
Loan and Lease Financings
Recorded investment in loans and leases	19,671,000	31,813,000
Credit Quality Grades 7-12 | Medium and heavy duty truck
Loan and Lease Financings
Recorded investment in loans and leases	1,423,000	1,710,000
Credit Quality Grades 7-12 | Aircraft
Loan and Lease Financings
Recorded investment in loans and leases	28,064,000	34,669,000
Credit Quality Grades 7-12 | Construction equipment
Loan and Lease Financings
Recorded investment in loans and leases	17,895,000	19,660,000
Credit Quality Grades 7-12 | Commercial real estate
Loan and Lease Financings
Recorded investment in loans and leases	$ 18,797,000	$ 22,510,000

Loan and Lease Financings (De_4

Loan and Lease Financings (Details 4) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Loan and Lease Financings
Recorded investment in loans and leases	$ 4,926,187	$ 4,835,464
Residential real estate and home equity and consumer loans
Loan and Lease Financings
Recorded investment in loans and leases	650,516	660,492
Residential real estate and home equity
Loan and Lease Financings
Recorded investment in loans and leases	514,719	523,855
Consumer
Loan and Lease Financings
Recorded investment in loans and leases	135,797	136,637
Performing | Residential real estate and home equity and consumer loans
Loan and Lease Financings
Recorded investment in loans and leases	648,505	658,269
Performing | Residential real estate and home equity
Loan and Lease Financings
Recorded investment in loans and leases	512,927	521,846
Performing | Consumer
Loan and Lease Financings
Recorded investment in loans and leases	$ 135,578	136,423
Nonperforming
Loan and Lease Financings
Classification of nonperforming loans, threshold period past due	90 days
Nonperforming | Residential real estate and home equity and consumer loans
Loan and Lease Financings
Recorded investment in loans and leases	$ 2,011	2,223
Nonperforming | Residential real estate and home equity
Loan and Lease Financings
Recorded investment in loans and leases	1,792	2,009
Nonperforming | Consumer
Loan and Lease Financings
Recorded investment in loans and leases	$ 219	$ 214

Loan and Lease Financings (De_5

Loan and Lease Financings (Details 5) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Current	$ 4,897,489	$ 4,792,847
90 Days or More Past Due and Accruing	179	368
Total Accruing Loans	4,912,565	4,807,605
Nonaccrual	13,622	27,859
Total loans and leases	4,926,187	4,835,464
30 to 59 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	12,542	11,180
60 to 89 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	2,355	3,210
Commercial and agricultural
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Current	1,142,979	1,070,530
Total Accruing Loans	1,143,063	1,070,552
Nonaccrual	2,968	2,653
Total loans and leases	1,146,031	1,073,205
Commercial and agricultural | 30 to 59 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	84	22
Commercial and agricultural | 60 to 89 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	0	0
Auto and light truck
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Current	548,752	544,022
Total Accruing Loans	549,924	548,613
Nonaccrual	4,154	11,374
Total loans and leases	554,078	559,987
Auto and light truck | 30 to 59 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	1,024	3,154
Auto and light truck | 60 to 89 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	148	1,437
Medium and heavy duty truck
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Current	285,539	283,284
Total Accruing Loans	285,562	283,438
Nonaccrual	69	106
Total loans and leases	285,631	283,544
Medium and heavy duty truck | 30 to 59 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	23	154
Medium and heavy duty truck | 60 to 89 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	0	0
Aircraft
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Current	818,494	790,233
Total Accruing Loans	829,185	795,550
Nonaccrual	1,252	7,561
Total loans and leases	830,437	803,111
Aircraft | 30 to 59 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	9,106	4,149
Aircraft | 60 to 89 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	1,585	1,168
Construction equipment
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Current	639,039	641,270
Total Accruing Loans	639,619	642,913
Nonaccrual	1,416	2,326
Total loans and leases	641,035	645,239
Construction equipment | 30 to 59 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	580	1,643
Construction equipment | 60 to 89 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	0	0
Commercial real estate
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Current	816,251	807,793
Total Accruing Loans	816,528	807,902
Nonaccrual	1,931	1,984
Total loans and leases	818,459	809,886
Commercial real estate | 30 to 59 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	277	109
Commercial real estate | 60 to 89 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	0	0
Residential real estate and home equity
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Current	511,627	520,124
90 Days or More Past Due and Accruing	151	295
Total Accruing Loans	513,078	522,141
Nonaccrual	1,641	1,714
Total loans and leases	514,719	523,855
Residential real estate and home equity | 30 to 59 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	819	1,267
Residential real estate and home equity | 60 to 89 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	481	455
Consumer
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Current	134,808	135,591
90 Days or More Past Due and Accruing	28	73
Total Accruing Loans	135,606	136,496
Nonaccrual	191	141
Total loans and leases	135,797	136,637
Consumer | 30 to 59 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	629	682
Consumer | 60 to 89 Days Past Due
Recorded investment of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Past Due	$ 141	$ 150

Loan and Lease Financings (De_6

Loan and Lease Financings (Details 6) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Impaired loans and leases
Recorded Investment, With no related allowance recorded	$ 5,698		$ 12,673
Unpaid Principal Balance, With no related allowance recorded	5,698		12,673
Recorded Investment, With an allowance recorded	5,860		13,287
Unpaid Principal Balance, With an allowance recorded	5,862		13,289
Total Recorded Investment	11,558		25,960
Total Unpaid Principal Balance	11,560		25,962
Total Related Allowance	823		2,083
Average Recorded Investment	17,454	$ 19,462
Interest Income	5	4
Commercial and agricultural
Impaired loans and leases
Recorded Investment, With no related allowance recorded	2,269		2,471
Unpaid Principal Balance, With no related allowance recorded	2,269		2,471
Recorded Investment, With an allowance recorded	504		0
Unpaid Principal Balance, With an allowance recorded	504		0
Total Related Allowance	42		0
Average Recorded Investment	2,821	2,843
Interest Income	0	0
Auto and light truck
Impaired loans and leases
Recorded Investment, With no related allowance recorded	590		7,504
Unpaid Principal Balance, With no related allowance recorded	590		7,504
Recorded Investment, With an allowance recorded	3,365		3,840
Unpaid Principal Balance, With an allowance recorded	3,365		3,840
Total Related Allowance	488		372
Average Recorded Investment	5,003	7,827
Interest Income	0	0
Medium and heavy duty truck
Impaired loans and leases
Recorded Investment, With no related allowance recorded	0		106
Unpaid Principal Balance, With no related allowance recorded	0		106
Recorded Investment, With an allowance recorded	0		0
Unpaid Principal Balance, With an allowance recorded	0		0
Total Related Allowance	0		0
Average Recorded Investment	54	347
Interest Income	0	0
Aircraft
Impaired loans and leases
Recorded Investment, With no related allowance recorded	1,251		556
Unpaid Principal Balance, With no related allowance recorded	1,251		556
Recorded Investment, With an allowance recorded	0		7,004
Unpaid Principal Balance, With an allowance recorded	0		7,004
Total Related Allowance	0		1,255
Average Recorded Investment	5,445	3,069
Interest Income	0	0
Construction equipment
Impaired loans and leases
Recorded Investment, With no related allowance recorded	471		905
Unpaid Principal Balance, With no related allowance recorded	471		905
Recorded Investment, With an allowance recorded	922		1,340
Unpaid Principal Balance, With an allowance recorded	922		1,340
Total Related Allowance	149		279
Average Recorded Investment	1,929	1,330
Interest Income	0	0
Commercial real estate
Impaired loans and leases
Recorded Investment, With no related allowance recorded	1,117		1,131
Unpaid Principal Balance, With no related allowance recorded	1,117		1,131
Recorded Investment, With an allowance recorded	727		759
Unpaid Principal Balance, With an allowance recorded	727		759
Total Related Allowance	20		51
Average Recorded Investment	1,859	3,696
Interest Income	0	0
Residential real estate and home equity
Impaired loans and leases
Recorded Investment, With no related allowance recorded	0		0
Unpaid Principal Balance, With no related allowance recorded	0		0
Recorded Investment, With an allowance recorded	342		344
Unpaid Principal Balance, With an allowance recorded	344		346
Total Related Allowance	124		126
Average Recorded Investment	343	350
Interest Income	5	4
Consumer
Impaired loans and leases
Recorded Investment, With no related allowance recorded	0		0
Unpaid Principal Balance, With no related allowance recorded	0		0
Recorded Investment, With an allowance recorded	0		0
Unpaid Principal Balance, With an allowance recorded	0		0
Total Related Allowance	0		$ 0
Average Recorded Investment	0	0
Interest Income	$ 0	$ 0

Loan and Lease Financings (De_7

Loan and Lease Financings (Details 7) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)item	Mar. 31, 2018item	Dec. 31, 2018USD ($)
Loans and leases classified as TDR
Number of Modifications | item	0	0
Number of Defaults | item	0	0
Loans and leases classified as troubled debt restructuring | $	$ 571		$ 660
Troubled debt restructured loans and leases which had payment defaults within twelve months following modification
Default threshold	90 days
Performing
Loans and leases classified as TDR
Loans and leases classified as troubled debt restructuring | $	$ 342		344
Nonperforming
Loans and leases classified as TDR
Loans and leases classified as troubled debt restructuring | $	$ 229		$ 316
Interest Rate Below Market Reduction [Member]
Loans and leases classified as TDR
Number of Modifications | item	0	0

Reserve for Loan and Lease Lo_3

Reserve for Loan and Lease Losses (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)	Mar. 31, 2018USD ($)	Mar. 31, 2019USD ($)item	Dec. 31, 2018USD ($)
Reserve for loan and lease losses
Number of classes existing in loan and lease portfolio | item			8
Changes in reserve for loan and lease losses
Balance at the beginning of the period	$ 100,469	$ 94,883
Charge-offs	3,954	556
Recoveries	419	218
Net charge-offs (recoveries)	3,535	338
Provision (recovery of provision)	4,918	3,786
Balance at the end of the period	101,852	98,331
Reserve for loan and lease losses
Ending balance, individually evaluated for impairment			$ 823	$ 2,083
Ending balance, collectively evaluated for impairment			101,029	98,386
Total reserve for loan and lease losses	100,469	94,883	101,852	100,469
Recorded investment in loans
Ending balance, individually evaluated for impairment			11,558	25,960
Ending balance, collectively evaluated for impairment			4,914,629	4,809,504
Total loans and leases			4,926,187	4,835,464
Commercial and agricultural
Changes in reserve for loan and lease losses
Balance at the beginning of the period	17,063	16,228
Charge-offs	79	25
Recoveries	34	49
Net charge-offs (recoveries)	45	(24)
Provision (recovery of provision)	1,289	1,357
Balance at the end of the period	18,307	17,609
Reserve for loan and lease losses
Ending balance, individually evaluated for impairment			42	0
Ending balance, collectively evaluated for impairment			18,265	17,063
Total reserve for loan and lease losses	17,063	16,228	18,307	17,063
Recorded investment in loans
Ending balance, individually evaluated for impairment			2,773	2,471
Ending balance, collectively evaluated for impairment			1,143,258	1,070,734
Total loans and leases			1,146,031	1,073,205
Auto and light truck
Changes in reserve for loan and lease losses
Balance at the beginning of the period	14,689	10,103
Charge-offs	409	316
Recoveries	9	6
Net charge-offs (recoveries)	400	310
Provision (recovery of provision)	(30)	1,017
Balance at the end of the period	14,259	10,810
Reserve for loan and lease losses
Ending balance, individually evaluated for impairment			488	372
Ending balance, collectively evaluated for impairment			13,771	14,317
Total reserve for loan and lease losses	14,689	10,103	14,259	14,689
Recorded investment in loans
Ending balance, individually evaluated for impairment			3,955	11,344
Ending balance, collectively evaluated for impairment			550,123	548,643
Total loans and leases			554,078	559,987
Medium and heavy duty truck
Changes in reserve for loan and lease losses
Balance at the beginning of the period	4,303	4,844
Charge-offs	0	0
Recoveries	0	0
Net charge-offs (recoveries)	0	0
Provision (recovery of provision)	106	(351)
Balance at the end of the period	4,409	4,493
Reserve for loan and lease losses
Ending balance, individually evaluated for impairment			0	0
Ending balance, collectively evaluated for impairment			4,409	4,303
Total reserve for loan and lease losses	4,303	4,844	4,409	4,303
Recorded investment in loans
Ending balance, individually evaluated for impairment			0	106
Ending balance, collectively evaluated for impairment			285,631	283,438
Total loans and leases			285,631	283,544
Aircraft
Changes in reserve for loan and lease losses
Balance at the beginning of the period	33,047	34,619
Charge-offs	3,000	29
Recoveries	185	44
Net charge-offs (recoveries)	2,815	(15)
Provision (recovery of provision)	3,208	202
Balance at the end of the period	33,440	34,836
Reserve for loan and lease losses
Ending balance, individually evaluated for impairment			0	1,255
Ending balance, collectively evaluated for impairment			33,440	31,792
Total reserve for loan and lease losses	33,047	34,619	33,440	33,047
Recorded investment in loans
Ending balance, individually evaluated for impairment			1,251	7,560
Ending balance, collectively evaluated for impairment			829,186	795,551
Total loans and leases			830,437	803,111
Construction equipment
Changes in reserve for loan and lease losses
Balance at the beginning of the period	10,922	9,343
Charge-offs	195	5
Recoveries	104	19
Net charge-offs (recoveries)	91	(14)
Provision (recovery of provision)	52	1,560
Balance at the end of the period	10,883	10,917
Reserve for loan and lease losses
Ending balance, individually evaluated for impairment			149	279
Ending balance, collectively evaluated for impairment			10,734	10,643
Total reserve for loan and lease losses	10,922	9,343	10,883	10,922
Recorded investment in loans
Ending balance, individually evaluated for impairment			1,393	2,245
Ending balance, collectively evaluated for impairment			639,642	642,994
Total loans and leases			641,035	645,239
Commercial real estate
Changes in reserve for loan and lease losses
Balance at the beginning of the period	15,705	14,792
Charge-offs	0	7
Recoveries	9	21
Net charge-offs (recoveries)	(9)	(14)
Provision (recovery of provision)	120	(36)
Balance at the end of the period	15,834	14,770
Reserve for loan and lease losses
Ending balance, individually evaluated for impairment			20	51
Ending balance, collectively evaluated for impairment			15,814	15,654
Total reserve for loan and lease losses	15,705	14,792	15,834	15,705
Recorded investment in loans
Ending balance, individually evaluated for impairment			1,844	1,890
Ending balance, collectively evaluated for impairment			816,615	807,996
Total loans and leases			818,459	809,886
Residential real estate and home equity
Changes in reserve for loan and lease losses
Balance at the beginning of the period	3,425	3,666
Charge-offs	21	11
Recoveries	3	6
Net charge-offs (recoveries)	18	5
Provision (recovery of provision)	(21)	(96)
Balance at the end of the period	3,386	3,565
Reserve for loan and lease losses
Ending balance, individually evaluated for impairment			124	126
Ending balance, collectively evaluated for impairment			3,262	3,299
Total reserve for loan and lease losses	3,425	3,666	3,386	3,425
Recorded investment in loans
Ending balance, individually evaluated for impairment			342	344
Ending balance, collectively evaluated for impairment			514,377	523,511
Total loans and leases			514,719	523,855
Consumer
Changes in reserve for loan and lease losses
Balance at the beginning of the period	1,315	1,288
Charge-offs	250	163
Recoveries	75	73
Net charge-offs (recoveries)	175	90
Provision (recovery of provision)	194	133
Balance at the end of the period	1,334	1,331
Reserve for loan and lease losses
Ending balance, individually evaluated for impairment			0	0
Ending balance, collectively evaluated for impairment			1,334	1,315
Total reserve for loan and lease losses	$ 1,315	$ 1,288	1,334	1,315
Recorded investment in loans
Ending balance, individually evaluated for impairment			0	0
Ending balance, collectively evaluated for impairment			135,797	136,637
Total loans and leases			$ 135,797	$ 136,637

Operating Leases (Details)

Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Operating Leases [Abstract]
Gross investment in operating lease financing	$ 198,984		$ 199,954
Accumulated depreciation	(67,390)		(65,514)
Net investment in operating lease financings	131,594		$ 134,440
Minimum future lease rental payments due from clients
2019	23,462
2020	33,623
2021	19,570
2022	11,578
2023	6,037
Thereafter	2,774
Total	97,044
Income from operating lease payments	7,980	$ 7,760
Expense from operating lease depreciation	6,520	$ 6,430
Income from reimbursements for personal property tax payments on operating leased equipment	240
Expense for payments of personal property taxes on operating leased equipment	$ 240

Mortgage Servicing Rights (Deta

Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Residential mortgage loans
Mortgage Servicing Rights
Unpaid principal balance	$ 735,500	$ 734,300

Mortgage Servicing Rights (De_2

Mortgage Servicing Rights (Details 2) - Residential mortgage loans - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Changes in mortgage servicing assets
Balance at the beginning of the period	$ 4,283	$ 4,349
Additions	197	243
Amortization	(233)	(236)
Sales	0	0
Carrying value before valuation allowance at end of period	4,247	4,356
Changes in valuation allowance
Balance at the beginning of the period	0	0
Impairment recoveries	0	0
Balance at the end of the period	0	0
Net carrying value of mortgage servicing rights at end of period	4,247	4,356
Fair value of mortgage servicing rights at end of period	6,677	7,389
Fair value of mortgage servicing rights exceeding the carrying value	2,430	3,030
Mortgage loan contractual servicing fees, including late fees and ancillary income	$ 620	$ 660

Commitments and Financial Ins_3

Commitments and Financial Instruments with Off-Balance-Sheet Risk (Details) $ in Thousands	Mar. 31, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
Operating lease right of use assets	$ 10,409
Operating lease liabilities	$ 10,801

Commitments and Financial Ins_4

Commitments and Financial Instruments with Off-Balance-Sheet Risk (Details 2) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)Rate	Mar. 31, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
Operating lease cost	$ 878
Short-term lease cost	3
Variable lease cost	0
Total operating lease cost	881
Operating Leases, Rent Expense, Net [Abstract]
Gross rental expense		$ 940
Operating Lease Liabilities, Payments Due [Abstract]
2019	2,479
2020	3,581
2021	2,391
2022	1,133
2023	425
Thereafter	1,706
Total lease payments	11,715
Imputed interest	(914)
Operating lease liabilities	$ 10,801
Weighted average remaining lease term	4 years 10 months 19 days
Weighted average discount rate | Rate	3.02%
Operating cash flows from operating leases	$ 948
Net gain on sale of building with a subsequent operating lease	$ 1,320
Number of significant lessee leases that have not yet commenced	0

Commitments and Financial Ins_5

Commitments and Financial Instruments with Off-Balance-Sheet Risk (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Loan commitments to extend credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet instruments	$ 1,068,340	$ 1,095,053
Standby letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet instruments	$ 29,830	31,133
Standby letters of credit | Minimum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Letter of credit term	6 months
Standby letters of credit | Maximum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Letter of credit term	1 year
Commercial and similar letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet instruments	$ 2,427	$ 2,500
Commercial and similar letters of credit | Minimum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Letter of credit term	3 months
Commercial and similar letters of credit | Maximum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Letter of credit term	6 months

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Non-hedging derivative financial instruments
Derivative Financial Instruments
Notional or contractual amount	$ 936,508	$ 875,806
Asset derivatives, Fair value	10,564	7,236
Liability derivatives, Fair value	10,683	7,385
Interest rate swap contracts
Derivative Financial Instruments
Asset derivatives, Fair value	10,375	7,128
Interest rate swap contracts | Non-hedging derivative financial instruments
Derivative Financial Instruments
Notional or contractual amount	908,503	855,848
Asset derivatives, Fair value	10,375	7,124
Liability derivatives, Fair value	10,558	7,250
Loan commitments | Non-hedging derivative financial instruments
Derivative Financial Instruments
Notional or contractual amount	11,671	5,871
Asset derivatives, Fair value	189	112
Liability derivatives, Fair value	0	0
Forward contracts - mortgage loan | Non-hedging derivative financial instruments
Derivative Financial Instruments
Notional or contractual amount	16,334	14,087
Asset derivatives, Fair value	0	0
Liability derivatives, Fair value	$ 125	$ 135

Derivative Financial Instrume_4

Derivative Financial Instruments (Details 2) - Non-hedging derivative financial instruments - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Derivative Financial Instruments
Gain (loss)	$ 309	$ 331
Interest rate swap contracts | Other expense
Derivative Financial Instruments
Gain (loss)	(57)	(1)
Interest rate swap contracts | Other income
Derivative Financial Instruments
Gain (loss)	279	333
Loan commitments | Mortgage banking income
Derivative Financial Instruments
Gain (loss)	77	(4)
Forward contracts - mortgage loan | Mortgage banking income
Derivative Financial Instruments
Gain (loss)	$ 10	$ 3

Derivative Financial Instrume_5

Derivative Financial Instruments (Details 3) - Interest rate swaps - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Offsetting Assets
Gross Amounts of Recognized Assets	$ 10,375	$ 7,128
Gross Amounts Offset in the Statement of Financial Position	0	4
Net Amounts of Assets Presented in the Statement of Financial Position	10,375	7,124
Derivative Asset, Fair Value, Amount Offset Against Collateral [Abstract]
Financial instruments	0	177
Cash collateral received	90	610
Net Amount	$ 10,285	$ 6,337

Derivative Financial Instrume_6

Derivative Financial Instruments (Details 4) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Offsetting of financial liabilities and derivative liabilities
Gross Amounts of Recognized Liabilities	$ 122,730	$ 110,881
Gross Amounts Offset in the Statement of Financial Position	0	4
Net Amounts of Liabilities Presented in the Statement of Financial Position	122,730	110,877
Gross amounts Not Offset in the Statement of Financial Position
Financial Instruments	121,933	105,327
Cash Collateral Pledged	0	0
Net Amount	797	5,550
Interest rate swaps
Offsetting of financial liabilities and derivative liabilities
Gross Amounts of Recognized Liabilities	10,558	7,254
Gross Amounts Offset in the Statement of Financial Position	0	4
Net Amounts of Liabilities Presented in the Statement of Financial Position	10,558	7,250
Derivative, Collateral, Right to Reclaim Securities	9,761	1,700
Gross amounts Not Offset in the Statement of Financial Position
Cash Collateral Pledged	0	0
Net Amount	797	5,550
Repurchase agreements
Offsetting of financial liabilities and derivative liabilities
Gross Amounts of Recognized Liabilities	112,172	103,627
Net Amounts of Liabilities Presented in the Statement of Financial Position	112,172	103,627
Gross amounts Not Offset in the Statement of Financial Position
Financial Instruments	$ 112,172	$ 103,627

Derivative Financial Instrume_7

Derivative Financial Instruments (Details 5) - U.S. Treasury and Federal agencies securities - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Overnight and Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Repurchase agreements	$ 109,890	$ 102,340
Up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Repurchase agreements	$ 2,280	$ 1,290

Variable Interest Entities (Det

Variable Interest Entities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Variable Interest Entities [Abstract]
Federal tax credits recognized in tax expense	$ 350	$ 320
Investment tax credits	1,600	$ 8,150
Investment carrying amount, unconsolidated VIEs	12,999		$ 15,083
Capital and other commitments, unconsolidated VIEs	4,692		6,449
Maximum exposure to loss, unconsolidated VIEs	40,199		40,705
Investment carrying amount, consolidated VIEs	21,720		8,380
Unfunded capital and other commitments, consolidated VIEs	$ 18,750		$ 6,700

Variable Interest Entities (D_2

Variable Interest Entities (Details 2) $ in Thousands		3 Months Ended
		Mar. 31, 2019USD ($)trust	Dec. 31, 2018USD ($)
Variable Interest Entities [Abstract]
Number of trusts sponsored | trust		1
Percentage of ownership interest		100.00%
Subordinated Borrowing [Line Items]
Amount of subordinated notes		$ 58,764	$ 58,764
June 2007 issuance
Subordinated Borrowing [Line Items]
Amount of subordinated notes		$ 41,238
Interest rate (as a percent)	[1]	7.22%
Maturity date of subordinated notes		Jun. 15, 2037
August 2007 issuance
Subordinated Borrowing [Line Items]
Amount of subordinated notes		$ 17,526
Interest rate (as a percent)	[2]	4.27%
Maturity date of subordinated notes		Sep. 15, 2037
London Interbank Offered Rate (LIBOR) | August 2007 issuance
Subordinated Borrowing [Line Items]
Basis spread on variable rate (as a percent)		1.48%
[1]	Fixed rate through life of debt.
[2]	3-Month LIBOR +1.48% through remaining life of debt.

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Outstanding stock options (in shares)	0	0
Distributed earnings allocated to common stock	$ 6,966	$ 5,704
Undistributed earnings allocated to common stock	15,102	13,278
Net earnings allocated to common stock	22,068	18,982
Net earnings allocated to participating securities	128	134
Net income available to common shareholders	$ 22,196	$ 19,116
Weighted average shares outstanding for basic earnings per common share	25,759,186	25,950,386
Dilutive effect of stock compensation (in shares)	0	0
Weighted average shares outstanding for diluted earnings per common share	25,759,186	25,950,386
Basic earnings per common share (in dollars per share)	$ 0.86	$ 0.73
Diluted earnings per common share (in dollars per share)	$ 0.86	$ 0.73

Stock Based Compensation (Detai

Stock Based Compensation (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)itemshares	Mar. 31, 2018USD ($)shares
Stock-based compensation
Number of stock-based employee compensation plans | item	4
Number of executive stock award plans | item	3
Outstanding stock options (in shares)	0	0
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $	$ 6,560
Weighted-average period over which unrecognized compensation cost is expected to be recognized	3 years 4 months 20 days
Stock options
Stock-based compensation
Total fair value of options vested and expensed | $	$ 0	$ 0
Outstanding stock options (in shares)	0	0
Stock options exercised (in shares)	0	0

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Reclassifications out of accumulated other comprehensive income
Losses on investment securities available-for-sale	$ 0	$ (345)
Income before income taxes	28,950	24,996
Income tax expense	(6,754)	(5,880)
Net income	22,196	19,116
Unrealized gains and losses on available-for-sale securities | Amount Reclassified from Accumulated Other Comprehensive Income
Reclassifications out of accumulated other comprehensive income
Losses on investment securities available-for-sale	0	(345)
Income before income taxes	0	(345)
Income tax expense	0	83
Net income	$ 0	$ (262)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Unrecognized tax benefits that would affect the effective tax rate if recognized	$ 0		$ 0
Interest and penalties net of tax recognized	0	$ 10
Accrued interest and penalties	$ 0		$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands		Mar. 31, 2019	Dec. 31, 2018
Fair value measurements
Fair value carrying amount		$ 9,210	$ 11,290
Mortgages held for sale reported at fair value
Fair value measurements
Fair value carrying amount		9,210	11,290
Aggregate unpaid principal		8,970	11,076
Excess of fair value carrying amount over (under) unpaid principal	[1]	$ 240	$ 214
[1]	The excess of fair value carrying amount over (under) unpaid principal is included in mortgage banking income and includes changes in fair value at and subsequent to funding and gains and losses on the related loan commitment prior to funding.

Fair Value Measurements (Deta_2

Fair Value Measurements (Details 2) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair value measurements
Investment securities available-for-sale	$ 1,002,809	$ 990,129
Assets:
Mortgages held for sale	9,210	11,290
U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	535,406	531,223
U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	88,756	94,582
Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	329,941	318,233
Corporate debt securities
Fair value measurements
Investment securities available-for-sale	48,006	45,392
Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	700	699
Total
Fair value measurements
Investment securities available-for-sale	1,002,809	990,129
Assets:
Mortgages held for sale	9,210	11,290
Level 1
Fair value measurements
Investment securities available-for-sale	33,895	33,746
Assets:
Mortgages held for sale	0	0
Level 2
Fair value measurements
Investment securities available-for-sale	963,850	955,358
Assets:
Mortgages held for sale	9,210	11,290
Level 3
Fair value measurements
Investment securities available-for-sale	5,064	1,025
Assets:
Mortgages held for sale	0	0
Recurring basis | Total
Fair value measurements
Investment securities available-for-sale	1,002,809	990,129
Assets:
Mortgages held for sale	9,210	11,290
Total	1,022,394	1,008,543
Liabilities:
Total	10,558	7,250
Recurring basis | Total | Interest rate swap contracts
Assets:
Accrued income and other assets	10,375	7,124
Liabilities:
Accrued expenses and other liabilities	10,558	7,250
Recurring basis | Total | U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	535,406	531,223
Recurring basis | Total | U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	88,756	94,582
Recurring basis | Total | Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	329,941	318,233
Recurring basis | Total | Corporate debt securities
Fair value measurements
Investment securities available-for-sale	48,006	45,392
Recurring basis | Total | Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	700	699
Recurring basis | Level 1
Fair value measurements
Investment securities available-for-sale	33,895	33,746
Assets:
Mortgages held for sale	0	0
Total	33,895	33,746
Liabilities:
Total	0	0
Recurring basis | Level 1 | Interest rate swap contracts
Assets:
Accrued income and other assets	0	0
Liabilities:
Accrued expenses and other liabilities	0	0
Recurring basis | Level 1 | U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	33,895	33,746
Recurring basis | Level 1 | U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	0	0
Recurring basis | Level 1 | Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	0	0
Recurring basis | Level 1 | Corporate debt securities
Fair value measurements
Investment securities available-for-sale	0	0
Recurring basis | Level 1 | Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	0	0
Recurring basis | Level 2
Fair value measurements
Investment securities available-for-sale	963,850	955,358
Assets:
Mortgages held for sale	9,210	11,290
Total	983,435	973,772
Liabilities:
Total	10,558	7,250
Recurring basis | Level 2 | Interest rate swap contracts
Assets:
Accrued income and other assets	10,375	7,124
Liabilities:
Accrued expenses and other liabilities	10,558	7,250
Recurring basis | Level 2 | U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	501,511	497,477
Recurring basis | Level 2 | U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	83,692	93,557
Recurring basis | Level 2 | Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	329,941	318,233
Recurring basis | Level 2 | Corporate debt securities
Fair value measurements
Investment securities available-for-sale	48,006	45,392
Recurring basis | Level 2 | Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	700	699
Recurring basis | Level 3
Fair value measurements
Investment securities available-for-sale	5,064	1,025
Assets:
Mortgages held for sale	0	0
Total	5,064	1,025
Liabilities:
Total	0	0
Recurring basis | Level 3 | Interest rate swap contracts
Assets:
Accrued income and other assets	0	0
Liabilities:
Accrued expenses and other liabilities	0	0
Recurring basis | Level 3 | U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	0	0
Recurring basis | Level 3 | U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	5,064	1,025
Recurring basis | Level 3 | Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	0	0
Recurring basis | Level 3 | Corporate debt securities
Fair value measurements
Investment securities available-for-sale	0	0
Recurring basis | Level 3 | Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	$ 0	$ 0

Fair Value Measurements (Deta_3

Fair Value Measurements (Details 3) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)item	Mar. 31, 2018USD ($)item
Changes in the fair value of Level 3 assets measured on a recurring basis
Total gains or losses (unrealized): included in earnings	$ 0	$ 0
Number of transfers between levels | item	0	0
U.S. States and political subdivisions securities
Changes in the fair value of Level 3 assets measured on a recurring basis
Balance at the beginning of the period	$ 1,025	$ 2,155
Total gains or losses (realized/unrealized): included in earnings	0	0
Total gains or losses (realized/unrealized): included in other comprehensive income	19	0
Purchases	4,100	0
Issuances	0	0
Sales	0	0
Settlements	0	0
Maturities	(80)	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance at the end of the period	5,064	2,155
Foreign government and other securities
Changes in the fair value of Level 3 assets measured on a recurring basis
Balance at the beginning of the period	0	710
Total gains or losses (realized/unrealized): included in earnings	0	0
Total gains or losses (realized/unrealized): included in other comprehensive income	0	(2)
Purchases	0	0
Issuances	0	0
Sales	0	0
Settlements	0	0
Maturities	0	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance at the end of the period	0	708
Investment securities available-for-sale
Changes in the fair value of Level 3 assets measured on a recurring basis
Balance at the beginning of the period	1,025	2,865
Total gains or losses (realized/unrealized): included in earnings	0	0
Total gains or losses (realized/unrealized): included in other comprehensive income	19	(2)
Purchases	4,100	0
Issuances	0	0
Sales	0	0
Settlements	0	0
Maturities	(80)	0
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance at the end of the period	$ 5,064	$ 2,863

Fair Value Measurements (Deta_4

Fair Value Measurements (Details 4) $ in Thousands	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Valuation Methodology
Investment securities, available-for-sale	$ 1,002,809	$ 990,129
Level 3
Valuation Methodology
Investment securities, available-for-sale	5,064	1,025
Recurring | Level 3
Valuation Methodology
Investment securities, available-for-sale	5,064	1,025
Recurring | Level 3 | Discounted cash flows | Direct placement municipal securities
Valuation Methodology
Investment securities, available-for-sale	$ 5,064	$ 1,025
Discount for lack of marketability | Non-recurring | Level 3 | Trade publications | Aircraft
Unobservable Inputs
Discount rate (as a percent)	0.10
Discount for lack of marketability | Non-recurring | Level 3 | Auction values | Autos
Unobservable Inputs
Discount rate (as a percent)	0.10
Discount for lack of marketability | Non-recurring | Level 3 | Trade publications and auction values | Medium and heavy duty trucks
Unobservable Inputs
Discount rate (as a percent)	0.15
Discount for lack of marketability | Non-recurring | Level 3 | Trade publications and auction values | Construction equipment
Unobservable Inputs
Discount rate (as a percent)	0.20
Discount for lack of marketability | Non-recurring | Level 3 | Appraisals | Real estate
Unobservable Inputs
Discount rate (as a percent)	0.20
Credit spread assumption | Recurring | Level 3 | Discounted cash flows | Direct placement municipal securities | Minimum
Unobservable Inputs
Debt securities available-for-sale unobservable inputs (as a percent)	0.0251	0.0017
Credit spread assumption | Recurring | Level 3 | Discounted cash flows | Direct placement municipal securities | Maximum
Unobservable Inputs
Debt securities available-for-sale unobservable inputs (as a percent)	0.0294	0.0302
Receivables | Discount for lack of marketability | Non-recurring | Level 3 | Commercial loans
Unobservable Inputs
Discount rate (as a percent)	0.20
Inventory | Discount for lack of marketability | Non-recurring | Level 3 | Minimum | Commercial loans
Unobservable Inputs
Discount rate (as a percent)	0.40
Inventory | Discount for lack of marketability | Non-recurring | Level 3 | Maximum | Commercial loans
Unobservable Inputs
Discount rate (as a percent)	0.75

Fair Value Measurements (Deta_5

Fair Value Measurements (Details 5) - Non-recurring - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Impaired loans
Fair value measurements
Impairment charges (recoveries)	$ 3,000
Mortgage servicing rights
Fair value measurements
Impairment charges (recoveries)	0
Repossessions
Fair value measurements
Impairment charges (recoveries)	1,100
Other real estate
Fair value measurements
Impairment charges (recoveries)	0
Total
Fair value measurements
Impaired loans - collateral based	1,578	$ 7,306
Assets measured at fair value	16,653	18,554
Total | Mortgage servicing rights
Fair value measurements
Accrued income and other assets	4,247	4,283
Total | Repossessions
Fair value measurements
Accrued income and other assets	10,411	6,666
Total | Other real estate
Fair value measurements
Accrued income and other assets	417	299
Level 3
Fair value measurements
Impaired loans - collateral based	1,578	7,306
Assets measured at fair value	16,653	18,554
Level 3 | Mortgage servicing rights
Fair value measurements
Accrued income and other assets	4,247	4,283
Level 3 | Repossessions
Fair value measurements
Accrued income and other assets	10,411	6,666
Level 3 | Other real estate
Fair value measurements
Accrued income and other assets	$ 417	$ 299

Fair Value Measurements (Deta_6

Fair Value Measurements (Details 6) - Non-recurring $ in Thousands	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Level 3
Valuation Methodology
Assets measured at fair value	$ 16,653	$ 18,554
Carrying Value | Level 3 | Collateral based measurements | Impaired loans
Valuation Methodology
Assets measured at fair value	1,578	7,306
Carrying Value | Level 3 | Discounted cash flows | Mortgage servicing rights
Valuation Methodology
Assets measured at fair value	4,247	4,283
Carrying Value | Level 3 | Appraisals trade publications and auction values | Repossessions
Valuation Methodology
Assets measured at fair value	10,411	6,666
Carrying Value | Level 3 | Appraisals | Other real estate
Valuation Methodology
Assets measured at fair value	417	299
Fair Value
Valuation Methodology
Assets measured at fair value	16,653	18,554
Fair Value | Level 3 | Collateral based measurements | Impaired loans
Valuation Methodology
Assets measured at fair value	1,578	7,306
Fair Value | Level 3 | Discounted cash flows | Mortgage servicing rights
Valuation Methodology
Assets measured at fair value	6,677	7,238
Fair Value | Level 3 | Appraisals trade publications and auction values | Repossessions
Valuation Methodology
Assets measured at fair value	10,883	6,991
Fair Value | Level 3 | Appraisals | Other real estate
Valuation Methodology
Assets measured at fair value	$ 424	$ 305
Discount for lack of marketability and current conditions | Level 3 | Collateral based measurements | Impaired loans | Minimum
Unobservable Inputs
Impaired loans unobservable inputs (as a percent)	0.2000	0.2000
Discount for lack of marketability and current conditions | Level 3 | Collateral based measurements | Impaired loans | Maximum
Unobservable Inputs
Impaired loans unobservable inputs (as a percent)	1	0.3500
Constant prepayment rate (CPR) | Level 3 | Discounted cash flows | Mortgage servicing rights | Minimum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.0910	0.0720
Constant prepayment rate (CPR) | Level 3 | Discounted cash flows | Mortgage servicing rights | Maximum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.2590	0.2480
Discount rate | Level 3 | Discounted cash flows | Mortgage servicing rights | Minimum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.0980	0.1030
Discount rate | Level 3 | Discounted cash flows | Mortgage servicing rights | Maximum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.1260	0.1310
Discount for lack of marketability | Level 3 | Appraisals trade publications and auction values | Repossessions | Minimum
Unobservable Inputs
Repossessions unobservable inputs (as a percent)	0	0.04
Discount for lack of marketability | Level 3 | Appraisals trade publications and auction values | Repossessions | Maximum
Unobservable Inputs
Repossessions unobservable inputs (as a percent)	0.06	0.06
Discount for lack of marketability | Level 3 | Appraisals | Other real estate | Minimum
Unobservable Inputs
Other real estate unobservable inputs (as a percent)	0	0
Discount for lack of marketability | Level 3 | Appraisals | Other real estate | Maximum
Unobservable Inputs
Other real estate unobservable inputs (as a percent)	0.09	0.10

Fair Value Measurements (Deta_7

Fair Value Measurements (Details 7) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets:
Cash and due from banks	$ 64,619	$ 94,907
Federal funds sold and interest bearing deposits with other banks	3,062	4,172
Investment securities available-for-sale	1,002,809	990,129
Other investments	28,404	28,404
Mortgages held for sale	9,210	11,290
Loans and leases, net of reserve for loan and lease losses	4,824,335	4,734,995
Liabilities:
Long-term debt and mandatorily redeemable securities	71,439	71,123
Subordinated notes	58,764	58,764
Carrying or Contract Value
Assets:
Cash and due from banks	64,619	94,907
Federal funds sold and interest bearing deposits with other banks	3,062	4,172
Investment securities available-for-sale	1,002,809	990,129
Other investments	28,404	28,404
Mortgages held for sale	9,210	11,290
Loans and leases, net of reserve for loan and lease losses	4,824,335	4,734,995
Mortgage servicing rights	4,247	4,283
Accrued interest receivable	21,576	18,880
Interest rate swaps	10,375	7,124
Liabilities:
Deposits	5,124,091	5,122,322
Short-term borrowings	255,388	199,344
Long-term debt and mandatorily redeemable securities	71,439	71,123
Subordinated notes	58,764	58,764
Accrued interest payable	11,377	8,950
Interest rate swaps	10,558	7,250
Off-balance-sheet instruments	0	0
Fair Value
Assets:
Cash and due from banks	64,619	94,907
Federal funds sold and interest bearing deposits with other banks	3,062	4,172
Investment securities available-for-sale	1,002,809	990,129
Other investments	28,404	28,404
Mortgages held for sale	9,210	11,290
Loans and leases, net of reserve for loan and lease losses	4,802,938	4,689,267
Mortgage servicing rights	6,677	7,238
Accrued interest receivable	21,576	18,880
Interest rate swaps	10,375	7,124
Liabilities:
Deposits	5,121,098	5,111,711
Short-term borrowings	255,388	199,344
Long-term debt and mandatorily redeemable securities	69,724	68,751
Subordinated notes	55,484	45,874
Accrued interest payable	11,377	8,950
Interest rate swaps	10,558	7,250
Off-balance-sheet instruments	247	259
Level 1
Assets:
Cash and due from banks	64,619	94,907
Federal funds sold and interest bearing deposits with other banks	3,062	4,172
Investment securities available-for-sale	33,895	33,746
Other investments	28,404	28,404
Mortgages held for sale	0	0
Loans and leases, net of reserve for loan and lease losses	0	0
Mortgage servicing rights	0	0
Accrued interest receivable	0	0
Interest rate swaps	0	0
Liabilities:
Deposits	3,559,051	3,654,556
Short-term borrowings	148,284	113,734
Long-term debt and mandatorily redeemable securities	0	0
Subordinated notes	0	0
Accrued interest payable	0	0
Interest rate swaps	0	0
Off-balance-sheet instruments	0	0
Level 2
Assets:
Cash and due from banks	0	0
Federal funds sold and interest bearing deposits with other banks	0	0
Investment securities available-for-sale	963,850	955,358
Other investments	0	0
Mortgages held for sale	9,210	11,290
Loans and leases, net of reserve for loan and lease losses	0	0
Mortgage servicing rights	0	0
Accrued interest receivable	21,576	18,880
Interest rate swaps	10,375	7,124
Liabilities:
Deposits	1,562,047	1,457,155
Short-term borrowings	107,104	85,610
Long-term debt and mandatorily redeemable securities	69,724	68,751
Subordinated notes	55,484	45,874
Accrued interest payable	11,377	8,950
Interest rate swaps	10,558	7,250
Off-balance-sheet instruments	247	259
Level 3
Assets:
Cash and due from banks	0	0
Federal funds sold and interest bearing deposits with other banks	0	0
Investment securities available-for-sale	5,064	1,025
Other investments	0	0
Mortgages held for sale	0	0
Loans and leases, net of reserve for loan and lease losses	4,802,938	4,689,267
Mortgage servicing rights	6,677	7,238
Accrued interest receivable	0	0
Interest rate swaps	0	0
Liabilities:
Deposits	0	0
Short-term borrowings	0	0
Long-term debt and mandatorily redeemable securities	0	0
Subordinated notes	0	0
Accrued interest payable	0	0
Interest rate swaps	0	0
Off-balance-sheet instruments	$ 0	$ 0