1st Source (SRCE) 10-Q 20 Oct 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 14, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	0-6233
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	35-1068133
Entity Address, Address Line One	100 North Michigan Street
Entity Address, City or Town	South Bend,
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	46601
City Area Code	574
Local Phone Number	235-2000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock - without par value
Trading Symbol	SRCE
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		24,657,178
Entity Registrant Name	1st Source Corp
Entity Central Index Key	0000034782
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED STATEMENTS OF FINA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
ASSETS
Cash and due from banks	$ 86,952	$ 54,420
Federal funds sold and interest bearing deposits with other banks	30,652	470,767
Investment securities available-for-sale	1,801,194	1,863,041
Other investments	25,538	27,189
Mortgages held for sale	3,058	13,284
Loans and leases - net of unearned discount
Loans and leases	5,762,078	5,346,214
Allowance for loan and lease losses	(135,736)	(127,492)
Net loans and leases	5,626,342	5,218,722
Equipment owned under operating leases, net	32,964	48,433
Net premises and equipment	44,837	47,038
Goodwill and intangible assets	83,911	83,926
Accrued income and other assets	362,038	269,469
Total assets	8,097,486	8,096,289
Deposits:
Noninterest-bearing demand	2,047,328	2,052,981
Interest-bearing deposits:
Interest-bearing demand	2,527,461	2,455,580
Savings	1,267,531	1,286,367
Time	778,911	884,137
Total interest-bearing deposits	4,573,903	4,626,084
Total deposits	6,621,231	6,679,065
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase	145,192	194,727
Other short-term borrowings	195,270	5,300
Total short-term borrowings	340,462	200,027
Long-term debt and mandatorily redeemable securities	47,587	71,251
Subordinated notes	58,764	58,764
Accrued expenses and other liabilities	143,082	117,718
Total liabilities	7,211,126	7,126,825
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 September 30, 2022 and December 31, 2021	436,538	436,538
Retained earnings	671,541	603,787
Cost of common stock in treasury (3,548,496 shares at September 30, 2022 and 3,466,162 shares at December 31, 2021)	(119,743)	(114,209)
Accumulated other comprehensive loss	(162,277)	(9,861)
Total shareholders’ equity	826,059	916,255
Noncontrolling interests	60,301	53,209
Total equity	886,360	969,464
Total liabilities and equity	$ 8,097,486	$ 8,096,289
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	3,548,496	3,466,162
Commercial and agricultural
Loans and leases - net of unearned discount
Loans and leases	$ 835,762	$ 918,712
Allowance for loan and lease losses	(16,147)	(15,409)
Solar
Loans and leases - net of unearned discount
Loans and leases	358,635	348,302
Allowance for loan and lease losses	(6,794)	(6,585)
Auto and light truck
Loans and leases - net of unearned discount
Loans and leases	743,324	603,775
Allowance for loan and lease losses	(18,997)	(19,624)
Medium and heavy duty truck
Loans and leases - net of unearned discount
Loans and leases	293,068	259,740
Allowance for loan and lease losses	(7,013)	(6,015)
Aircraft
Loans and leases - net of unearned discount
Loans and leases	997,995	898,401
Allowance for loan and lease losses	(37,295)	(33,628)
Construction equipment
Loans and leases - net of unearned discount
Loans and leases	878,692	754,273
Allowance for loan and lease losses	(22,849)	(19,673)
Commercial real estate
Loans and leases - net of unearned discount
Loans and leases	937,423	929,341
Allowance for loan and lease losses	(18,490)	(19,691)
Residential real estate and home equity
Loans and leases - net of unearned discount
Loans and leases	568,602	500,590
Allowance for loan and lease losses	(6,069)	(5,084)
Consumer
Loans and leases - net of unearned discount
Loans and leases	148,577	133,080
Allowance for loan and lease losses	$ (2,082)	$ (1,783)

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest income:
Loans and leases	$ 69,027	$ 61,696	$ 184,650	$ 176,704
Investment securities, taxable	6,691	4,533	19,324	12,676
Investment securities, tax-exempt	339	140	630	468
Other	421	360	1,952	943
Total interest income	76,478	66,729	206,556	190,791
Interest expense:
Deposits	6,556	2,924	12,485	9,652
Short-term borrowings	380	25	427	90
Subordinated notes	904	816	2,578	2,448
Long-term debt and mandatorily redeemable securities	(296)	740	(948)	2,030
Total interest expense	7,544	4,505	14,542	14,220
Net interest income	68,934	62,224	192,014	176,571
Provision (recovery of provision) for credit losses	3,167	(2,559)	7,903	(3,186)
Net interest income after provision for loan and lease losses	65,767	64,783	184,111	179,757
Noninterest income:
Mortgage banking	864	3,149	3,303	9,909
Insurance commissions	1,695	1,862	5,168	5,698
Equipment rental	2,761	3,946	9,718	12,830
Losses on investment securities available-for-sale	0	0	0	(680)
Other	3,321	3,317	9,937	9,446
Total noninterest income	22,007	25,497	67,982	76,264
Noninterest expense:
Salaries and employee benefits	26,386	26,974	77,415	77,680
Net occupancy	2,582	2,654	7,917	7,900
Furniture and equipment	1,372	1,494	4,051	4,388
Information Technology and Data Processing	5,802	4,950	16,412	14,851
Depreciation - leased equipment	2,233	3,239	7,912	10,562
Professional fees	1,539	1,815	5,241	5,574
FDIC and other insurance	939	396	2,682	1,833
Business development and marketing	1,415	4,465	4,352	6,813
Other	3,063	2,077	10,340	7,801
Total noninterest expense	45,331	48,064	136,322	137,402
Income before income taxes	42,443	42,216	115,771	118,619
Income tax expense	9,698	9,735	26,295	27,797
Net income	32,745	32,481	89,476	90,822
Net (income) loss attributable to noncontrolling interests	(8)	2	(35)	(11)
Net income available to common shareholders	$ 32,737	$ 32,483	$ 89,441	$ 90,811
Per common share:
Basic net income per common share (in dollars per share)	$ 1.32	$ 1.29	$ 3.59	$ 3.59
Diluted net income per common share (in dollars per share)	1.32	1.29	3.59	3.59
Cash dividends (in dollars per share)	$ 0.32	$ 0.31	$ 0.94	$ 0.90
Basic weighted average common shares outstanding (in shares)	24,656,736	24,919,956	24,697,106	25,126,703
Diluted weighted average common shares outstanding (in shares)	24,656,736	24,919,956	24,697,106	25,126,703
Trust and wealth advisory
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	$ 5,498	$ 5,886	$ 17,499	$ 17,833
Service charges on deposit accounts
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	3,240	2,767	8,974	7,722
Debit card
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	$ 4,628	$ 4,570	$ 13,383	$ 13,506

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 32,745	$ 32,481	$ 89,476	$ 90,822
Other comprehensive loss:
Unrealized depreciation of available-for-sale securities	(72,275)	(6,833)	(200,061)	(21,695)
Reclassification adjustment for realized losses included in net income	0	0	0	680
Income tax effect	17,009	1,646	47,645	5,061
Other comprehensive loss, net of tax	(55,266)	(5,187)	(152,416)	(15,954)
Comprehensive (loss) income	(22,521)	27,294	(62,940)	74,868
Comprehensive (income) loss attributable to noncontrolling interests	(8)	2	(35)	(11)
Comprehensive (loss) income available to common shareholders	$ (22,529)	$ 27,296	$ (62,975)	$ 74,857

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
Balance at Dec. 31, 2020	$ 930,670	$ 436,538	$ 514,176	$ (82,240)	$ 18,371	$ 886,845	$ 43,825
Increase (Decrease) in Shareholders' Equity
Net income	90,822		90,811			90,811	11
Other comprehensive (loss) income	(15,954)				(15,954)	(15,954)
Issuance of 6,771 and 6,936 common shares under stock based compensation awards for the three months ended September 30, 2022 and 2021, respectively and 67,485 and 57,762 common shares under stock based compensation awards for the nine months ended September 30, 2022 and 2021, respectively	2,453		1,399	1,054		2,453
Cost of 0 and 210,130 shares of common stock acquired for treasury for the three months ended September 30, 2022 and 2021, respectively and 149,819 and 649,346 shares of common stock acquired for treasury for the nine months ended September 30, 2022 and 2021, respectively	(30,067)			(30,067)		(30,067)
Common stock dividend ($0.32 and $0.31 per share for the three months ended September 30, 2022 and 2021, respectively and $0.94 and $0.90 per share for the nine months ended September 30, 2022 and 2021, respectively)	(22,755)		(22,755)			(22,755)
Contributions from noncontrolling interests	2,005					0	2,005
Distributions to noncontrolling interests	$ (777)					0	(777)
Issuance of common shares under stock based compensation awards (in shares)	57,762
Common stock acquired for treasury (in shares)	649,346
Cash dividends (in dollars per share)	$ 0.90
Balance at Sep. 30, 2021	$ 956,397	436,538	583,631	(111,253)	2,417	911,333	45,064
Balance at Jun. 30, 2021	945,457	436,538	558,795	(101,711)	7,604	901,226	44,231
Increase (Decrease) in Shareholders' Equity
Net income	32,481		32,483			32,483	(2)
Other comprehensive (loss) income	(5,187)				(5,187)	(5,187)
Issuance of 6,771 and 6,936 common shares under stock based compensation awards for the three months ended September 30, 2022 and 2021, respectively and 67,485 and 57,762 common shares under stock based compensation awards for the nine months ended September 30, 2022 and 2021, respectively	255		128	127		255
Cost of 0 and 210,130 shares of common stock acquired for treasury for the three months ended September 30, 2022 and 2021, respectively and 149,819 and 649,346 shares of common stock acquired for treasury for the nine months ended September 30, 2022 and 2021, respectively	(9,669)			(9,669)		(9,669)
Common stock dividend ($0.32 and $0.31 per share for the three months ended September 30, 2022 and 2021, respectively and $0.94 and $0.90 per share for the nine months ended September 30, 2022 and 2021, respectively)	(7,775)		(7,775)			(7,775)
Contributions from noncontrolling interests	1,118					0	1,118
Distributions to noncontrolling interests	$ (283)					0	(283)
Issuance of common shares under stock based compensation awards (in shares)	6,936
Common stock acquired for treasury (in shares)	210,130
Cash dividends (in dollars per share)	$ 0.31
Balance at Sep. 30, 2021	$ 956,397	436,538	583,631	(111,253)	2,417	911,333	45,064
Balance at Dec. 31, 2021	969,464	436,538	603,787	(114,209)	(9,861)	916,255	53,209
Increase (Decrease) in Shareholders' Equity
Net income	89,476		89,441			89,441	35
Other comprehensive (loss) income	(152,416)				(152,416)	(152,416)
Issuance of 6,771 and 6,936 common shares under stock based compensation awards for the three months ended September 30, 2022 and 2021, respectively and 67,485 and 57,762 common shares under stock based compensation awards for the nine months ended September 30, 2022 and 2021, respectively	2,918		1,616	1,302		2,918
Cost of 0 and 210,130 shares of common stock acquired for treasury for the three months ended September 30, 2022 and 2021, respectively and 149,819 and 649,346 shares of common stock acquired for treasury for the nine months ended September 30, 2022 and 2021, respectively	(6,836)			(6,836)		(6,836)
Common stock dividend ($0.32 and $0.31 per share for the three months ended September 30, 2022 and 2021, respectively and $0.94 and $0.90 per share for the nine months ended September 30, 2022 and 2021, respectively)	(23,303)		(23,303)			(23,303)
Contributions from noncontrolling interests	7,700					0	7,700
Distributions to noncontrolling interests	$ (643)					0	(643)
Issuance of common shares under stock based compensation awards (in shares)	67,485
Common stock acquired for treasury (in shares)	149,819
Cash dividends (in dollars per share)	$ 0.94
Balance at Sep. 30, 2022	$ 886,360	436,538	671,541	(119,743)	(162,277)	826,059	60,301
Balance at Jun. 30, 2022	910,667	436,538	646,600	(119,876)	(107,011)	856,251	54,416
Increase (Decrease) in Shareholders' Equity
Net income	32,745		32,737			32,737	8
Other comprehensive (loss) income	(55,266)				(55,266)	(55,266)
Issuance of 6,771 and 6,936 common shares under stock based compensation awards for the three months ended September 30, 2022 and 2021, respectively and 67,485 and 57,762 common shares under stock based compensation awards for the nine months ended September 30, 2022 and 2021, respectively	251		118	133		251
Common stock dividend ($0.32 and $0.31 per share for the three months ended September 30, 2022 and 2021, respectively and $0.94 and $0.90 per share for the nine months ended September 30, 2022 and 2021, respectively)	(7,914)		(7,914)			(7,914)
Contributions from noncontrolling interests	6,073					0	6,073
Distributions to noncontrolling interests	$ (196)					0	(196)
Issuance of common shares under stock based compensation awards (in shares)	6,771
Cash dividends (in dollars per share)	$ 0.32
Balance at Sep. 30, 2022	$ 886,360	$ 436,538	$ 671,541	$ (119,743)	$ (162,277)	$ 826,059	$ 60,301

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Statement of Cash Flows [Abstract]
Net income	$ 89,476	$ 90,822
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (recovery of provision) for credit losses	7,903	(3,186)
Depreciation of premises and equipment	3,452	3,891
Depreciation of equipment owned and leased to others	7,912	10,562
Stock-based compensation	2,510	2,962
Amortization of investment securities premiums and accretion of discounts, net	3,098	5,024
Amortization of mortgage servicing rights	1,033	1,663
Mortgage servicing rights impairment recoveries	0	(812)
Amortization of right of use assets	2,369	2,317
Deferred income taxes	(5,428)	13,087
Losses on investment securities available-for-sale	0	680
Originations of loans held for sale, net of principal collected	(73,718)	(210,256)
Proceeds from the sales of loans held for sale	85,206	194,753
Net gain on sale of loans held for sale	(1,262)	(6,206)
Net gain on sale of other real estate and repossessions	(267)	(636)
Change in interest receivable	(2,866)	1,687
Change in interest payable	1,249	(1,572)
Change in other assets	10,049	11,900
Change in other liabilities	3,650	(11,829)
Other	(2,623)	223
Net Cash Provided by (Used in) Operating Activities	131,743	105,074
Investing activities:
Proceeds from sales of investment securities available-for-sale	0	99,208
Proceeds from maturities and paydowns of investment securities available-for-sale	162,766	256,538
Purchases of investment securities available-for-sale	(304,078)	(768,238)
Net change in partnership investments	(16,917)	(15,146)
Net change in other investments	1,651	240
Loans sold or participated to others	35,252	25,970
Proceeds from principal payments on direct finance leases	48,610	27,072
Net change in loans and leases	(500,707)	72,195
Net change in equipment owned under operating leases	7,557	3,000
Purchases of premises and equipment	(1,269)	(1,389)
Proceeds from disposal of premises and equipment	18	125
Purchases of bank owned life insurance policies	(10,000)	0
Proceeds from sales of other real estate and repossessions	2,421	3,527
Net Cash Provided by (Used in) Investing Activities	(574,696)	(296,898)
Financing activities:
Net change in demand deposits and savings accounts	47,392	806,318
Net change in time deposits	(105,226)	(229,841)
Net change in short-term borrowings	140,435	65,024
Payments on long-term debt	(23,740)	(3,288)
Stock issued under stock purchase plans	252	90
Acquisition of treasury stock	(6,836)	(30,067)
Net contributions from (distributions to) noncontrolling interests	7,057	1,228
Cash dividends paid on common stock	(23,964)	(23,405)
Net change in financing activities	35,370	586,059
Net change in cash and cash equivalents	(407,583)	394,235
Cash and cash equivalents, beginning of year	525,187	243,047
Cash and cash equivalents, end of period	117,604	637,282
Non-cash transactions:
Loans transferred to other real estate and repossessed assets	1,322	1,554
Common stock matching contribution to Employee Stock Ownership and Profit Sharing Plan	683	715
Right of use assets obtained in exchange for lease obligations	$ 846	$ 698

Accounting Policies

Accounting Policies	9 Months Ended
	Sep. 30, 2022
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 (loss), 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 (2021 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, 2021 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. Costs incurred as a direct result of closing lease transactions are capitalized and amortized over the life of the lease while all other initial direct costs are expensed immediately. Accrued interest is included in Accrued Income and Other Assets on the Consolidated Statements of Financial Condition and is excluded from the calculation of the allowance for credit losses. 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 allowance 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. 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). 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.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Fair Value Measurements : In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-03 “Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” These amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. This guidance is effective for public business entities for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted. The Company has assessed ASU 2022-03 and does not expect it to have a material impact on its accounting and disclosures. Financial Instruments–Credit Losses : In March 2022, the FASB issued ASU No. 2022-02 “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” These amendments eliminate the TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Additionally, these amendments require that an entity disclose current-period gross writeoffs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. The guidance is effective for entities that have adopted ASU 2016-13 for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. These amendments should be applied prospectively. If an entity elects to early adopt ASU 2022-02 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. An entity may elect to early adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The Company is assessing ASU 2022-02 and its impact on its accounting and disclosures. Reference Rate Reform: In March 2020, the FASB issued ASU No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. In January 2021, the FASB issued ASU 2021-01 which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company continues to implement its transition plan toward cessation of LIBOR and the modification of its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Company expects to utilize the LIBOR transition relief allowed under ASU 2020-04 and ASU 2021-01, as applicable, and does not expect such adoption to have a material impact on its accounting and disclosures. The Company will continue to assess the impact as the reference rate transition approaches June 30, 2023.

Investment Securities

Investment Securities	9 Months Ended
	Sep. 30, 2022
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 September 30, 2022 U.S. Treasury and Federal agencies securities $ 1,131,244 $ — $ (99,667) $ 1,031,577 U.S. States and political subdivisions securities 126,008 — (10,777) 115,231 Mortgage-backed securities — Federal agencies 739,896 4 (102,210) 637,690 Corporate debt securities 16,496 — (383) 16,113 Foreign government and other securities 600 — (17) 583 Total debt securities available-for-sale $ 2,014,244 $ 4 $ (213,054) $ 1,801,194 December 31, 2021 U.S. Treasury and Federal agencies securities $ 1,093,780 $ 3,244 $ (13,018) $ 1,084,006 U.S. States and political subdivisions securities 95,700 1,130 (1,129) 95,701 Mortgage-backed securities — Federal agencies 663,441 4,745 (8,459) 659,727 Corporate debt securities 22,510 499 — 23,009 Foreign government and other securities 600 — (2) 598 Total debt securities available-for-sale $ 1,876,031 $ 9,618 $ (22,608) $ 1,863,041 Amortized cost excludes accrued interest receivable which is included in Accrued Income and Other Assets on the Consolidated Statements of Financial Condition. At September 30, 2022 and December 31, 2021, accrued interest receivable on investment securities available-for-sale was $5.30 million and $4.80 million, respectively. At September 30, 2022 and December 31, 2021, 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 September 30, 2022. 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 $ 85,315 $ 84,424 Due after one year through five years 1,118,538 1,017,205 Due after five years through ten years 39,021 32,807 Due after ten years 31,474 29,068 Mortgage-backed securities 739,896 637,690 Total debt securities available-for-sale $ 2,014,244 $ 1,801,194 The following table summarizes gross unrealized losses and fair value by investment category and age. At September 30, 2022, the Company’s available-for-sale securities portfolio consisted of 748 securities, 728 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 September 30, 2022 U.S. Treasury and Federal agencies securities $ 344,947 $ (19,238) $ 686,630 $ (80,429) $ 1,031,577 $ (99,667) U.S. States and political subdivisions securities 80,326 (5,194) 33,630 (5,583) 113,956 (10,777) Mortgage-backed securities - Federal agencies 332,094 (39,091) 304,448 (63,119) 636,542 (102,210) Corporate debt securities 16,113 (383) — — 16,113 (383) Foreign government and other securities 487 (13) 96 (4) 583 (17) Total debt securities available-for-sale $ 773,967 $ (63,919) $ 1,024,804 $ (149,135) $ 1,798,771 $ (213,054) December 31, 2021 U.S. Treasury and Federal agencies securities $ 789,536 $ (10,728) $ 84,191 $ (2,290) $ 873,727 $ (13,018) U.S. States and political subdivisions securities 39,585 (980) 4,875 (149) 44,460 (1,129) Mortgage-backed securities - Federal agencies 454,413 (7,312) 35,232 (1,147) 489,645 (8,459) Corporate debt securities — — — — — — Foreign government and other securities 598 (2) — — 598 (2) Total debt securities available-for-sale $ 1,284,132 $ (19,022) $ 124,298 $ (3,586) $ 1,408,430 $ (22,608) The Company does not consider available-for-sale securities with unrealized losses at September 30, 2022 to be experiencing credit losses and recognized no resulting allowance for credit losses. The Company does not intend to sell these investments and it is more likely than not that the Company will not be required to sell these investments before recovery of the amortized cost basis, which may be the maturity dates of the securities. The unrealized losses occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase. 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 Nine Months Ended (Dollars in thousands) 2022 2021 2022 2021 Gross realized gains $ — $ — $ — $ 221 Gross realized losses — — — (901) Net realized gains (losses) $ — $ — $ — $ (680) At September 30, 2022 and December 31, 2021, investment securities available-for-sale with carrying values of $264.35 million and $351.13 million, respectively, were pledged as collateral for security repurchase agreements and for other purposes.

Loan and Lease Financings

Loan and Lease Financings	9 Months Ended
	Sep. 30, 2022
Receivables [Abstract]
Loan and Lease Financings	Loan and Lease FinancingsThe 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 $250,000 are reviewed quarterly as part of management’s evaluation of the appropriateness of the allowance 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). 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. Nonperforming loans are those loans which are on nonaccrual status or are 90 days or more past due. Below is a summary of the Company’s loan and lease portfolio segments and a discussion of the risk characteristics relevant to each portfolio segment. Commercial and agricultural – loans are to entities within the Company’s local market communities. Loans are for business or agri-business purposes and include working capital lines of credit secured by accounts receivable and inventory that are generally renewable annually and term loans secured by equipment with amortizations based on the expected life of the underlying collateral, generally three Solar – loans are for the purpose of financing solar related projects and may include construction draw notes, operating loans, letters of credit and may entail a tax equity structure. Collateral in a multi-state area includes tangible assets of the borrower, assignment of intangible assets including power purchase agreements, and pledges of permits and licenses. Financing is provided to qualified borrowers throughout the continental United States with an emphasis on the region east of the Rocky Mountains. Auto and light truck – loans are secured by vehicles and borrowers are nationwide. The portfolio consists of multiple industries: auto rental, auto leasing and specialty vehicle which includes bus, funeral car and step van. Borrowers in the auto rental segment are primarily independent auto rental entities with on-airport and off-airport locations, and some insurance replacement business. Loan amortizations are relatively short, generally eighteen months, but up to four years. Auto leasing customers lease to businesses and the Company takes assignment of the lease stream and places its lien on the vehicles. Terms are generally longer than the auto rental sector, three Medium and heavy duty truck – loans and full-service truck leases are secured by heavy-duty trucks, commonly Class 8 trucks, and are generally personally guaranteed. In addition to economic risks, collateral risk is significant. Financing is generally at full cost, plus additional expenditures to get the vehicle operational, such as taxes, insurance and fees. It takes three Aircraft – loans are to domestic and foreign borrowers with the domestic segment further divided into two pools: 1) personal and business use, and 2) dealers and operators. The Company’s focus for the foreign sector is Latin America, principally Mexico and Brazil. Loans are primarily secured by new and used business jets and helicopters, with appropriate advances, amortizations of ten Construction equipment – loans are to borrowers throughout the country secured by specific equipment. The borrowers include highway and road builders, asphalt producers and pavers, suppliers of aggregate products, site developers, frac sand operations, general construction equipment dealers and operators, and crane rental entities. Generally, loans include personal guarantees. The construction equipment industry is heavily dependent on the U.S. economy and the global economy. Market growth is reliant on investments from public and private sectors into urbanization and infrastructure projects. Commercial real estate – loans are generally to entities within the local market communities served by the Company with advances generally within regulatory guidelines. Historically, the Company’s exposure to commercial real estate had been primarily to the less risky owner-occupied segment although growth in recent years has been in the non-owner-occupied segment which now accounts for slightly less than half of the portfolio. The non-owner-occupied segment includes hotels, apartment complexes and warehousing facilities. There is limited exposure to construction loans. Many commercial real estate loans carry personal guarantees. Additional risks in the commercial real estate portfolio stem from geographical concentration in northern Indiana and southwest Michigan and general economic conditions. Residential real estate and home equity – loans predominantly include one-to-four family mortgages to borrowers in the Company’s local market communities and are appropriately underwritten and secured by residential real estate. Consumer – loans are to individuals in the Company’s local markets and auto loans are generally secured by personal vehicles and appropriately underwritten. The following table shows the amortized cost of loans and leases, segregated by portfolio segment, credit quality rating and year of origination as of September 30, 2022. Term Loans and Leases by Origination Year (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and agricultural Grades 1-6 $ 119,558 $ 126,915 $ 86,893 $ 39,376 $ 19,329 $ 18,808 $ 397,057 $ — $ 807,936 Grades 7-12 3,094 2,897 124 2,358 2,509 1,399 15,445 — 27,826 Total commercial and agricultural 122,652 129,812 87,017 41,734 21,838 20,207 412,502 — 835,762 Solar Grades 1-6 69,556 115,921 37,240 72,710 18,631 33,467 — — 347,525 Grades 7-12 — — 1,103 5,732 705 3,570 — — 11,110 Total solar 69,556 115,921 38,343 78,442 19,336 37,037 — — 358,635 Auto and light truck Grades 1-6 394,772 186,699 74,388 41,687 12,935 4,713 — — 715,194 Grades 7-12 6,569 5,228 7,419 3,416 2,511 2,987 — — 28,130 Total auto and light truck 401,341 191,927 81,807 45,103 15,446 7,700 — — 743,324 Medium and heavy duty truck Grades 1-6 114,007 72,478 50,579 38,281 12,679 4,986 — — 293,010 Grades 7-12 — — — — — 58 — — 58 Total medium and heavy duty truck 114,007 72,478 50,579 38,281 12,679 5,044 — — 293,068 Aircraft Grades 1-6 317,174 292,885 239,238 60,565 33,028 47,775 4,530 — 995,195 Grades 7-12 592 — 578 — — 1,630 — — 2,800 Total aircraft 317,766 292,885 239,816 60,565 33,028 49,405 4,530 — 997,995 Construction equipment Grades 1-6 359,702 234,401 120,431 68,480 24,452 7,729 22,426 2,975 840,596 Grades 7-12 22,162 9,618 2,466 2,081 234 55 — 1,480 38,096 Total construction equipment 381,864 244,019 122,897 70,561 24,686 7,784 22,426 4,455 878,692 Commercial real estate Grades 1-6 208,585 170,211 128,762 115,556 108,539 189,259 296 — 921,208 Grades 7-12 280 838 7,614 6,138 48 1,297 — — 16,215 Total commercial real estate 208,865 171,049 136,376 121,694 108,587 190,556 296 — 937,423 Residential real estate and home equity Performing 89,237 101,190 101,388 35,269 7,274 85,733 142,535 3,779 566,405 Nonperforming — 186 926 — — 669 188 228 2,197 Total residential real estate and home equity 89,237 101,376 102,314 35,269 7,274 86,402 142,723 4,007 568,602 Consumer Performing 59,856 39,184 15,115 9,045 3,854 1,032 20,323 — 148,409 Nonperforming — 69 30 40 15 14 — — 168 Total consumer $ 59,856 $ 39,253 $ 15,145 $ 9,085 $ 3,869 $ 1,046 $ 20,323 $ — $ 148,577 The following table shows the amortized cost of loans and leases, segregated by portfolio segment, credit quality rating and year of origination as of December 31, 2021. Term Loans and Leases by Origination Year (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and agricultural Grades 1-6 $ 233,512 $ 123,947 $ 60,744 $ 55,231 $ 32,545 $ 20,184 $ 364,460 $ — $ 890,623 Grades 7-12 4,682 194 3,667 2,373 2,004 484 14,685 — 28,089 Total commercial and agricultural 238,194 124,141 64,411 57,604 34,549 20,668 379,145 — 918,712 Solar Grades 1-6 159,244 42,073 81,593 18,979 34,889 3,780 — — 340,558 Grades 7-12 — 1,138 5,882 724 — — — — 7,744 Total solar 159,244 43,211 87,475 19,703 34,889 3,780 — — 348,302 Auto and light truck Grades 1-6 331,105 122,709 72,580 24,965 11,814 901 — — 564,074 Grades 7-12 10,828 11,752 7,467 3,859 4,876 919 — — 39,701 Total auto and light truck 341,933 134,461 80,047 28,824 16,690 1,820 — — 603,775 Medium and heavy duty truck Grades 1-6 92,252 68,354 57,967 23,210 12,419 5,265 — — 259,467 Grades 7-12 — — — — — 273 — — 273 Total medium and heavy duty truck 92,252 68,354 57,967 23,210 12,419 5,538 — — 259,740 Aircraft Grades 1-6 384,895 290,897 85,916 45,848 47,025 29,435 4,844 — 888,860 Grades 7-12 1,141 649 — 4,670 454 2,627 — — 9,541 Total aircraft 386,036 291,546 85,916 50,518 47,479 32,062 4,844 — 898,401 Construction equipment Grades 1-6 314,044 201,032 109,029 47,693 13,501 5,031 18,937 4,594 713,861 Grades 7-12 26,650 8,709 1,983 797 80 — — 2,193 40,412 Total construction equipment 340,694 209,741 111,012 48,490 13,581 5,031 18,937 6,787 754,273 Commercial real estate Grades 1-6 230,701 150,144 146,374 141,838 126,642 112,243 391 — 908,333 Grades 7-12 218 5,921 7,159 491 6,208 1,011 — — 21,008 Total commercial real estate 230,919 156,065 153,533 142,329 132,850 113,254 391 — 929,341 Residential real estate and home equity Performing 105,345 114,682 41,185 9,706 11,720 89,646 122,281 4,555 499,120 Nonperforming — — — 13 421 655 293 88 1,470 Total residential real estate and home equity 105,345 114,682 41,185 9,719 12,141 90,301 122,574 4,643 500,590 Consumer Performing 58,866 24,307 17,031 8,284 2,263 697 21,378 — 132,826 Nonperforming 37 107 43 30 33 4 — — 254 Total consumer $ 58,903 $ 24,414 $ 17,074 $ 8,314 $ 2,296 $ 701 $ 21,378 $ — $ 133,080 The following table shows the amortized cost of loans and leases, segregated by portfolio segment, 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 Nonaccrual Total September 30, 2022 Commercial and agricultural $ 834,918 $ 360 $ 41 $ — $ 835,319 $ 443 $ 835,762 Solar 358,635 — — — 358,635 — 358,635 Auto and light truck 725,421 234 — — 725,655 17,669 743,324 Medium and heavy duty truck 293,010 — — — 293,010 58 293,068 Aircraft 995,787 — 1,630 — 997,417 578 997,995 Construction equipment 872,660 1,568 217 — 874,445 4,247 878,692 Commercial real estate 934,804 — — — 934,804 2,619 937,423 Residential real estate and home equity 565,712 508 185 166 566,571 2,031 568,602 Consumer 147,874 446 89 — 148,409 168 148,577 Total $ 5,728,821 $ 3,116 $ 2,162 $ 166 $ 5,734,265 $ 27,813 $ 5,762,078 December 31, 2021 Commercial and agricultural $ 916,659 $ — $ — $ — $ 916,659 $ 2,053 $ 918,712 Solar 348,302 — — — 348,302 — 348,302 Auto and light truck 579,605 — — — 579,605 24,170 603,775 Medium and heavy duty truck 259,467 — — — 259,467 273 259,740 Aircraft 894,092 1,130 2,530 — 897,752 649 898,401 Construction equipment 745,870 1,313 — — 747,183 7,090 754,273 Commercial real estate 926,345 — — — 926,345 2,996 929,341 Residential real estate and home equity 498,854 212 54 245 499,365 1,225 500,590 Consumer 132,464 332 30 4 132,830 250 133,080 Total $ 5,301,658 $ 2,987 $ 2,614 $ 249 $ 5,307,508 $ 38,706 $ 5,346,214 Accrued interest receivable on loans and leases at September 30, 2022 and December 31, 2021 was $15.19 million and $12.94 million, respectively. There were no loan and lease modifications classified as a troubled debt restructuring (TDR) during the three and nine months ended September 30, 2022. There was one nonperforming loan and lease modification classified as a troubled debt restructuring (TDR) during the three and nine months ended September 30, 2021. 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 and nine months ended September 30, 2022 and one modification during the three and nine months ended September 30, 2021 that resulted in an interest rate below market rate. There were no TDRs which had a payment default within the twelve months following modification during the three months ended September 30, 2022 and one TDR which had a payment default within the twelve months following modification during the nine months ended September 30, 2022. There were no TDRs which had payment defaults within the twelve months following modification during the three and nine months ended September 30, 2021. 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 September 30, 2022 and December 31, 2021. (Dollars in thousands) September 30, December 31, Performing TDRs $ — $ 319 Nonperforming TDRs 4,042 6,742 Total TDRs $ 4,042 $ 7,061

Allowance for Credit Losses

Allowance for Credit Losses	9 Months Ended
	Sep. 30, 2022
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance for Credit Losses	Allowance for Credit Losses Allowance for Loan and Lease Losses The allowance for credit losses is established for current expected credit losses on the Company’s loan and lease portfolios utilizing guidance in Accounting Standards Codification (ASC) Topic 326. The determination of the allowance requires significant judgment to estimate credit losses measured on a collective pool basis when similar risk characteristics exist, and for loans evaluated individually. In determining the allowance, the Company estimates expected future losses for the loan’s entire contractual term adjusted for expected payments when appropriate. The allowance estimate considers relevant available information, from internal and external sources relating to the historical loss experience, current conditions, and reasonable and supportable forecasts for the Company’s outstanding loan and lease balances. The allowance is an estimation that reflects management’s evaluation of expected losses related to the Company’s financial assets measured at amortized cost. To ensure that the allowance is maintained at an adequate level, a detailed analysis is performed on a quarterly basis and an appropriate provision is made to adjust the allowance. The Company categorizes its loan portfolios into nine segments based on similar risk characteristics. Loans within each segment are collectively evaluated using either: 1) a cohort cumulative loss rate methodology (“cohort”) or, 2) the probability of default (“PD”)/loss given default (“LGD”) methodology (PD/LGD). The following table shows the changes in the allowance for loan and lease losses, segregated by portfolio segment, for the three months ended September 30, 2022 and 2021. (Dollars in thousands) Commercial and Solar Auto and Medium Aircraft Construction Commercial Residential Consumer Total September 30, 2022 Balance, beginning of period $ 16,110 $ 6,652 $ 19,057 $ 6,709 $ 36,987 $ 21,171 $ 18,416 $ 5,779 $ 1,984 $ 132,865 Charge-offs 414 — 66 — — — — 17 223 720 Recoveries 39 — 91 — 176 11 17 1 89 424 Net charge-offs (recoveries) 375 — (25) — (176) (11) (17) 16 134 296 Provision (recovery of provision) 412 142 (85) 304 132 1,667 57 306 232 3,167 Balance, end of period $ 16,147 $ 6,794 $ 18,997 $ 7,013 $ 37,295 $ 22,849 $ 18,490 $ 6,069 $ 2,082 $ 135,736 September 30, 2021 Balance, beginning of period $ 14,832 $ 5,867 $ 27,221 $ 5,888 $ 35,301 $ 17,908 $ 22,578 $ 5,066 $ 1,700 $ 136,361 Charge-offs 21 — 407 — — 551 — — 98 1,077 Recoveries 176 — 479 — 153 170 — 3 49 1,030 Net charge-offs (recoveries) (155) — (72) — (153) 381 — (3) 49 47 Provision (recovery of provision) 179 (15) (1,451) (158) 975 (1,083) (1,253) 96 151 (2,559) Balance, end of period $ 15,166 $ 5,852 $ 25,842 $ 5,730 $ 36,429 $ 16,444 $ 21,325 $ 5,165 $ 1,802 $ 133,755 The following table shows the changes in the allowance for loan and lease losses, segregated by portfolio segment, for the nine months ended September 30, 2022 and 2021. (Dollars in thousands) Commercial and Solar Auto and Medium Aircraft Construction Commercial Residential Consumer Total September 30, 2022 Balance, beginning of period $ 15,409 $ 6,585 $ 19,624 $ 6,015 $ 33,628 $ 19,673 $ 19,691 $ 5,084 $ 1,783 $ 127,492 Charge-offs 453 — 98 — — 48 — 27 545 1,171 Recoveries 46 — 212 — 653 11 43 129 418 1,512 Net charge-offs (recoveries) 407 — (114) — (653) 37 (43) (102) 127 (341) Provision (recovery of provision) 1,145 209 (741) 998 3,014 3,213 (1,244) 883 426 7,903 Balance, end of period $ 16,147 $ 6,794 $ 18,997 $ 7,013 $ 37,295 $ 22,849 $ 18,490 $ 6,069 $ 2,082 $ 135,736 September 30, 2021 Balance, beginning of period $ 16,680 $ 5,549 $ 28,926 $ 6,400 $ 34,053 $ 19,166 $ 22,758 $ 5,374 $ 1,748 $ 140,654 Charge-offs 307 — 5,060 — — 559 — 42 355 6,323 Recoveries 694 — 664 — 513 424 19 14 282 2,610 Net charge-offs (recoveries) (387) — 4,396 — (513) 135 (19) 28 73 3,713 Provision (recovery of provision) (1,901) 303 1,312 (670) 1,863 (2,587) (1,452) (181) 127 (3,186) Balance, end of period $ 15,166 $ 5,852 $ 25,842 $ 5,730 $ 36,429 $ 16,444 $ 21,325 $ 5,165 $ 1,802 $ 133,755 The allowance for credit losses increased during the quarter in response to loan growth. The forecast adjustment was maintained quarter over quarter as previous period adjustments remain pertinent. Risk during the forecast period was attributable to a weakened domestic GDP outlook, continued geopolitical uncertainty, ongoing supply chain difficulties, and persistent inflation. Credit quality remains on an improving trend as evidenced by declining total special attention credit outstandings and minimal charge-off activity during the quarter. This quarter, increases in the allowance for various portfolios were driven by loan growth, particularly in the construction equipment, aircraft, medium and heavy duty truck, and residential real estate portfolios. The decrease in the auto and light truck portfolio was due to continued amortization of special attention credits in the highly reserved bus segment, offset partially by loan growth in the lower reserved auto rental and leasing segments. Commercial and agricultural – the decline in loan balances year-to-date was attributable to PPP debt forgiveness coupled with a modest decline in loans in our core businesses. The small increase in the allowance year-to-date was principally due to the impact of the previous quarter’s changes in the forecast adjustment. Solar – the allowance increased primarily due to loan growth during the quarter. Credit quality is stable. Auto and light truck – the allowance decreased as a result of lower outstanding loan balances in the higher risk bus segment of the portfolio, which was significantly impacted by the pandemic. The decline in allowance attributable to the bus segment was substantially offset by loan growth in the auto rental and leasing segments, which carry lower loss ratios. Medium and heavy duty truck – the allowance increased due to higher loan outstandings during the quarter and increases in the forecast adjustment in prior quarters. Credit quality metrics continued to be relatively strong for this portfolio. Energy price volatility and driver availability remain a challenge. Aircraft – the allowance increased due to loan growth in both domestic and foreign segments. The portfolio is currently bolstered by strong collateral values somewhat offset by continuing economic concerns related primarily to Latin American-based foreign loans. The Company has historically carried a higher allowance in this portfolio due to risk volatility. Construction equipment – the allowance increased primarily due to loan growth. Commercial real estate – the allowance increased slightly during the quarter due to loan growth. The decrease in allowance year-to-date was a result of the removal of COVID-19-related qualitative adjustment factors in prior periods. Residential real estate and home equity – the allowance increased primarily due to loan growth. Consumer – the allowance increased primarily due to loan growth. Economic Outlook As of September 30, 2022, the most significant economic factors impacting the Company’s loan portfolios are the weakening domestic growth outlook, the ongoing war in Ukraine and resultant increased uncertainty for the U.S. economy, and additional inflationary pressures, further aggravated by supply chain disruptions. Domestically, direct impacts of COVID-19 appear to be waning but the pandemic’s residual impact remains rooted in supply chain difficulties, labor constraints, and ongoing inflationary pressures. The Company remains watchful of COVID-19 surges and new variants. The forecast considers global and domestic economic impacts from these factors as well as other key economic factors such as change in Gross Domestic Product and unemployment which may impact our clients. The Company’s assumption was that economic growth will slow markedly in 2022 and 2023 and inflation will remain well above the 2% Federal Reserve target rate resulting in an adverse impact on the loan and lease portfolio over the next two years. As a result of geopolitical risks and economic uncertainty, the Company’s future loss estimates may vary considerably from the September 30, 2022 assumptions. Liability for Credit Losses on Unfunded Loan Commitments The liability for credit losses inherent in unfunded loan commitments is included in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition. The following table shows the changes in the liability for credit losses on unfunded loan commitments. Three Months Ended Nine Months Ended (Dollars in thousands) 2022 2021 2022 2021 Balance, beginning of period $ 5,497 $ 4,317 $ 4,196 $ 4,499 (Recovery of provision) provision (281) 46 1,020 (136) Balance, end of period $ 5,216 $ 4,363 $ 5,216 $ 4,363

Lease Investments

Lease Investments	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Lease Investments	Lease Investments As a lessor, the Company’s loan and lease portfolio includes direct finance leases, which are included in Commercial and Agricultural, Solar, Auto and Light Truck, Medium and Heavy Duty Truck, Aircraft, and Construction Equipment on the Consolidated Statements of Financial Condition. The Company also finances various types of construction equipment, medium and heavy duty trucks, automobiles and other equipment under leases classified as operating leases, which are included in Equipment Owned Under Operating Leases, net, on the Consolidated Statements of Financial Condition. The following table shows interest income recognized from direct finance lease payments and operating lease equipment rental income and related depreciation expense. Three Months Ended Nine Months Ended (Dollars in thousands) 2022 2021 2022 2021 Direct finance leases: Interest income on lease receivable $ 2,402 $ 1,629 $ 6,112 $ 4,880 Operating leases: Income related to lease payments $ 2,761 $ 3,946 $ 9,718 $ 12,830 Depreciation expense 2,233 3,239 7,912 10,562 Income related to reimbursements from lessees for personal property tax on operating leased equipment for the three months ended September 30, 2022 and 2021 was $0.08 million and $0.02 million, respectively and for the nine months ended September 30, 2022 and 2021 was $0.31 million and $0.40 million, respectively. Expense related to personal property tax payments on operating leased equipment for the three months ended September 30, 2022 and 2021 was $0.08 million and $0.02 million, respectively and for the nine months ended September 30, 2022 and 2021 was $0.31 million and $0.40 million.

Mortgage Servicing Rights

Mortgage Servicing Rights	9 Months Ended
	Sep. 30, 2022
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 $866.25 million and $883.90 million at September 30, 2022 and December 31, 2021, 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 Nine Months Ended (Dollars in thousands) 2022 2021 2022 2021 Mortgage servicing rights: Balance at beginning of period $ 4,443 $ 4,678 $ 4,671 $ 4,616 Additions 152 395 660 1,566 Amortization (297) (554) (1,033) (1,663) Carrying value before valuation allowance at end of period 4,298 4,519 4,298 4,519 Valuation allowance: Balance at beginning of period — (223) — (812) Impairment recoveries — 223 — 812 Balance at end of period $ — $ — $ — $ — Net carrying value of mortgage servicing rights at end of period $ 4,298 $ 4,519 $ 4,298 $ 4,519 Fair value of mortgage servicing rights at end of period $ 7,493 $ 4,999 $ 7,493 $ 4,999 At September 30, 2022 and 2021, the fair value of MSRs exceeded the carrying value reported in the Consolidated Statements of Financial Condition by $3.20 million and $0.48 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 $0.69 million and $0.81 million for the three months ended September 30, 2022 and 2021, respectively. Mortgage loan contractual servicing fees, including late fees and ancillary income, were $2.13 million and $2.40 million for the nine months ended September 30, 2022 and 2021, 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	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Financial Instruments with Off-Balance-Sheet Risk	Commitments and Financial Instruments with Off-Balance-Sheet Risk 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 Consolidated Statements of Financial Condition. The following table shows financial instruments whose contract amounts represent credit risk. (Dollars in thousands) September 30, December 31, Amounts of commitments: Loan commitments to extend credit $ 1,199,066 $ 1,148,984 Standby letters of credit $ 18,761 $ 24,657 Commercial and similar letters of credit $ 400 $ 8,531 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 Company 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 two 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 two months to six months.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2022
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 September 30, 2022 Interest rate swap contracts $ 947,564 Other assets $ 26,918 Other liabilities $ 27,424 Loan commitments 1,460 Mortgages held for sale 28 N/A — Forward contracts - mortgage loan 2,250 Mortgages held for sale 82 N/A — Total $ 951,274 $ 27,028 $ 27,424 December 31, 2021 Interest rate swap contracts $ 1,064,721 Other assets $ 20,735 Other liabilities $ 21,172 Loan commitments 15,086 Mortgages held for sale 452 N/A — Forward contracts - mortgage loan 22,000 N/A — Mortgages held for sale 11 Total $ 1,101,807 $ 21,187 $ 21,183 The following table shows the amounts included in the Consolidated Statements of Income for non-hedging derivative financial instruments. Gain (loss) Three Months Ended Nine Months Ended (Dollars in thousands) Statement of Income classification 2022 2021 2022 2021 Interest rate swap contracts Other expense $ (252) $ 101 $ (69) $ 420 Interest rate swap contracts Other income 83 69 83 307 Loan commitments Mortgage banking (197) (75) (424) (704) Forward contracts - mortgage loan Mortgage banking 83 246 93 512 Total $ (283) $ 341 $ (317) $ 535 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 Financial Instruments Cash Collateral Received Net Amount September 30, 2022 Interest rate swaps $ 26,918 $ — $ 26,918 $ — $ 25,735 $ 1,183 December 31, 2021 Interest rate swaps $ 24,436 $ 3,701 $ 20,735 $ — $ — $ 20,735 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 September 30, 2022 Interest rate swaps $ 27,424 $ — $ 27,424 $ — $ — $ 27,424 Repurchase agreements 130,192 — 130,192 130,192 — — Total $ 157,616 $ — $ 157,616 $ 130,192 $ — $ 27,424 December 31, 2021 Interest rate swaps $ 24,873 $ 3,701 $ 21,172 $ 20,498 $ — $ 674 Repurchase agreements 194,727 — 194,727 194,727 — — Total $ 219,600 $ 3,701 $ 215,899 $ 215,225 $ — $ 674 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 September 30, 2022 and December 31, 2021, repurchase agreements had a remaining contractual maturity of $126.92 million and $191.47 million in overnight and $3.27 million and $3.26 million in up to 30 days, respectively and were collateralized by U.S. Treasury and Federal agencies securities.

Variable Interest Entities

Variable Interest Entities	9 Months Ended
	Sep. 30, 2022
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. Tax credits from affordable housing investments and community development investments are recognized as a reduction of tax expense. Investments in renewable energy sources qualify for investment tax credits which are recognized 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 $0.52 million and $0.55 million for the three months ended September 30, 2022 and 2021, respectively and $1.55 million and $1.56 million for the nine months ended September 30, 2022 and 2021, respectively. The Company also recognized $0.00 million and $0.32 million of investment tax credits for the three months ended September 30, 2022 and 2021, respectively and $9.48 million and $3.32 million for the nine months ended September 30, 2022 and 2021, 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, the Company is 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) September 30, 2022 December 31, 2021 Investment carrying amount $ 55,546 $ 35,968 Unfunded capital and other commitments 51,428 29,670 Maximum exposure to loss 50,048 50,319 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 September 30, 2022 and December 31, 2021, approximately $66.91 million and $59.08 million of the Company’s assets and $0.00 million and $0.00 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 September 30, 2022. (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 4.77 % 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	9 Months Ended
	Sep. 30, 2022
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 September 30, 2022 and 2021. 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 Nine Months Ended (Dollars in thousands - except per share amounts) 2022 2021 2022 2021 Distributed earnings allocated to common stock $ 7,890 $ 7,749 $ 23,230 $ 22,681 Undistributed earnings allocated to common stock 24,571 24,472 65,489 67,422 Net earnings allocated to common stock 32,461 32,221 88,719 90,103 Net earnings allocated to participating securities 276 262 722 708 Net income allocated to common stock and participating securities $ 32,737 $ 32,483 $ 89,441 $ 90,811 Weighted average shares outstanding for basic earnings per common share 24,656,736 24,919,956 24,697,106 25,126,703 Dilutive effect of stock compensation — — — — Weighted average shares outstanding for diluted earnings per common share 24,656,736 24,919,956 24,697,106 25,126,703 Basic earnings per common share $ 1.32 $ 1.29 $ 3.59 $ 3.59 Diluted earnings per common share $ 1.32 $ 1.29 $ 3.59 $ 3.59

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock Based Compensation	Stock Based Compensation As of September 30, 2022, 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, 2021. These plans include three executive stock award plans, the Executive Incentive Plan (EIP), the Restricted Stock Award Plan (RSAP), the Strategic Deployment Incentive Plan (SDP); 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 September 30, 2022. 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 nine months ended September 30, 2022 and 2021. As of September 30, 2022 and 2021 there were no outstanding stock options. There were no stock options exercised during the nine months ended September 30, 2022 and 2021. All shares issued in connection with stock option exercises are issued from available treasury stock. As of September 30, 2022, there was $8.70 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 3.24 years.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income	9 Months Ended
	Sep. 30, 2022
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 September 30, Nine Months Ended September 30, Affected Line Item in the Statements of Income (Dollars in thousands) 2022 2021 2022 2021 Realized losses included in net income $ — $ — $ — $ (680) Losses on investment securities available-for-sale — — — (680) Income before income taxes Tax effect — — — 164 Income tax expense Net of tax $ — $ — $ — $ (516) Net income

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
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 September 30, 2022 and December 31, 2021. Interest and penalties are recognized through the income tax provision. For the three and nine months ended September 30, 2022 and 2021, the Company recognized no interest or penalties. There were no accrued interest and penalties at September 30, 2022 and December 31, 2021. Tax years that remain open and subject to audit include the federal 2018-2021 years and the Indiana 2018-2021 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	9 Months Ended
	Sep. 30, 2022
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 and for its best-efforts forward sales commitments. The Company economically hedges its mortgages held for sale at the time the interest rate locks are issued to the customers. The Company believes the election for mortgages held for sale will reduce certain timing differences and better match changes in the value of these assets with changes in the value of derivatives or best-best efforts forward sales commitments. At September 30, 2022 and December 31, 2021, 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 Aggregate Excess of fair value carrying amount over (under) unpaid principal September 30, 2022 Mortgages held for sale reported at fair value $ 3,058 $ 2,942 $ 116 (1) December 31, 2021 Mortgages held for sale reported at fair value $ 13,284 $ 12,456 $ 828 (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 by a third party pricing agent. Prices supplied by the independent pricing agent, as well as their pricing methodologies, are reviewed by the Company for reasonableness and to ensure such prices are aligned with market values. On a quarterly basis, prices supplied by the pricing agent are validated by comparison to the prices obtained from other third party sources. 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 September 30, 2022 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 570,045 $ 461,532 $ — $ 1,031,577 U.S. States and political subdivisions securities — 110,833 4,398 115,231 Mortgage-backed securities — Federal agencies — 637,690 — 637,690 Corporate debt securities — 16,113 — 16,113 Foreign government and other securities — 583 — 583 Total debt securities available-for-sale 570,045 1,226,751 4,398 1,801,194 Mortgages held for sale — 3,058 — 3,058 Accrued income and other assets (interest rate swap agreements) — 26,918 — 26,918 Total $ 570,045 $ 1,256,727 $ 4,398 $ 1,831,170 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 27,424 $ — $ 27,424 Total $ — $ 27,424 $ — $ 27,424 December 31, 2021 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 561,950 $ 522,056 $ — $ 1,084,006 U.S. States and political subdivisions securities — 93,852 1,849 95,701 Mortgage-backed securities — Federal agencies — 659,727 — 659,727 Corporate debt securities — 23,009 — 23,009 Foreign government and other securities — 598 — 598 Total debt securities available-for-sale 561,950 1,299,242 1,849 1,863,041 Mortgages held for sale — 13,284 — 13,284 Accrued income and other assets (interest rate swap agreements) — 20,735 — 20,735 Total $ 561,950 $ 1,333,261 $ 1,849 $ 1,897,060 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 21,172 $ — $ 21,172 Total $ — $ 21,172 $ — $ 21,172 The following table shows changes in Level 3 assets measured at fair value on a recurring basis for the quarter ended September 30, 2022 and 2021. (Dollars in thousands) U.S. States and Beginning balance July 1, 2022 $ 4,515 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (loss) (32) Purchases — Issuances — Sales — Settlements — Maturities (85) Transfers into Level 3 — Transfers out of Level 3 — Ending balance September 30, 2022 $ 4,398 Beginning balance July 1, 2021 $ 1,921 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (loss) (7) Purchases — Issuances — Sales — Settlements — Maturities (85) Transfers into Level 3 — Transfers out of Level 3 — Ending balance September 30, 2021 $ 1,829 There were no gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at September 30, 2022 or 2021. The following table shows the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring basis. (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Weighted Average September 30, 2022 Debt securities available-for sale Direct placement municipal securities $ 4,398 Discounted cash flows Credit spread assumption 4.17% - 4.97% 4.79 % December 31, 2021 Debt securities available-for sale Direct placement municipal securities $ 1,849 Discounted cash flows Credit spread assumption 0.04% - 2.31% 1.58 % 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. Collateral-dependent 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 an allowance 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 September 30, 2022: collateral-dependent impaired loans - $0.00 million; mortgage servicing rights - $0.00 million; repossessions - $0.00 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 September 30, 2022 Collateral-dependent impaired loans $ — $ — $ 851 $ 851 Accrued income and other assets (mortgage servicing rights) — — 4,298 4,298 Accrued income and other assets (repossessions) — — 26 26 Total $ — $ — $ 5,175 $ 5,175 December 31, 2021 Collateral-dependent impaired loans $ — $ — $ 571 $ 571 Accrued income and other assets (mortgage servicing rights) — — 4,671 4,671 Accrued income and other assets (repossessions) — — 861 861 Total $ — $ — $ 6,103 $ 6,103 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 Weighted Average September 30, 2022 Collateral-dependent impaired loans $ 851 $ 851 Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 20% - 90% 36.2 % Mortgage servicing rights 4,298 7,493 Discounted cash flows Constant prepayment rate (CPR) 7.4% - 10.4% 9.6 % Discount rate 11.9% - 14.7% 12.0 % Repossessions 26 30 Appraisals, trade publications and auction values Discount for lack of marketability 0% - 13% 13 % December 31, 2021 Collateral-dependent impaired loans $ 571 $ 571 Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 20% - 90% 43.1 % Mortgage servicing rights 4,671 5,640 Discounted cash flows Constant prepayment rate (CPR) 11.8% - 18.5% 16.4 % Discount rate 8.6% - 11.5% 8.8 % Repossessions 861 942 Appraisals, trade publications and auction values Discount for lack of marketability 0% - 21% 2 % 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 September 30, 2022 Assets: Cash and due from banks $ 86,952 $ 86,952 $ 86,952 $ — $ — Federal funds sold and interest bearing deposits with other banks 30,652 30,652 30,652 — — Investment securities, available-for-sale 1,801,194 1,801,194 570,045 1,226,751 4,398 Other investments 25,538 25,538 25,538 — — Mortgages held for sale 3,058 3,058 — 3,058 — Loans and leases, net of allowance for loan and lease losses 5,626,342 5,533,010 — — 5,533,010 Mortgage servicing rights 4,298 7,493 — — 7,493 Accrued interest receivable 20,625 20,625 — 20,625 — Interest rate swaps 26,918 26,918 — 26,918 — Liabilities: Deposits $ 6,621,231 $ 6,602,827 $ 5,842,321 $ 760,506 $ — Short-term borrowings 340,462 340,462 143,181 197,281 — Long-term debt and mandatorily redeemable securities 47,587 46,052 — 46,052 — Subordinated notes 58,764 48,394 — 48,394 — Accrued interest payable 3,133 3,133 — 3,133 — Interest rate swaps 27,424 27,424 — 27,424 — Off-balance-sheet instruments * — 120 — 120 — December 31, 2021 Assets: Cash and due from banks $ 54,420 $ 54,420 $ 54,420 $ — $ — Federal funds sold and interest bearing deposits with other banks 470,767 470,767 470,767 — — Investment securities, available-for-sale 1,863,041 1,863,041 561,950 1,299,242 1,849 Other investments 27,189 27,189 27,189 — — Mortgages held for sale 13,284 13,284 — 13,284 — Loans and leases, net of allowance for loan and lease losses 5,218,722 5,269,551 — — 5,269,551 Mortgage servicing rights 4,671 5,640 — — 5,640 Accrued interest receivable 17,760 17,760 — 17,760 — Interest rate swaps 20,735 20,735 — 20,735 — Liabilities: Deposits $ 6,679,065 $ 6,680,163 $ 5,794,928 $ 885,235 $ — Short-term borrowings 200,027 200,027 192,801 7,226 — Long-term debt and mandatorily redeemable securities 71,251 71,305 — 71,305 — Subordinated notes 58,764 58,553 — 58,553 — Accrued interest payable 1,885 1,885 — 1,885 — Interest rate swaps 21,172 21,172 — 21,172 — Off-balance-sheet instruments * — 364 — 364 — * 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.

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
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 (loss), 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 (2021 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, 2021 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. Costs incurred as a direct result of closing lease transactions are capitalized and amortized over the life of the lease while all other initial direct costs are expensed immediately. Accrued interest is included in Accrued Income and Other Assets on the Consolidated Statements of Financial Condition and is excluded from the calculation of the allowance for credit losses. 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 allowance 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. 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). 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.

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2022
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 September 30, 2022 U.S. Treasury and Federal agencies securities $ 1,131,244 $ — $ (99,667) $ 1,031,577 U.S. States and political subdivisions securities 126,008 — (10,777) 115,231 Mortgage-backed securities — Federal agencies 739,896 4 (102,210) 637,690 Corporate debt securities 16,496 — (383) 16,113 Foreign government and other securities 600 — (17) 583 Total debt securities available-for-sale $ 2,014,244 $ 4 $ (213,054) $ 1,801,194 December 31, 2021 U.S. Treasury and Federal agencies securities $ 1,093,780 $ 3,244 $ (13,018) $ 1,084,006 U.S. States and political subdivisions securities 95,700 1,130 (1,129) 95,701 Mortgage-backed securities — Federal agencies 663,441 4,745 (8,459) 659,727 Corporate debt securities 22,510 499 — 23,009 Foreign government and other securities 600 — (2) 598 Total debt securities available-for-sale $ 1,876,031 $ 9,618 $ (22,608) $ 1,863,041
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 September 30, 2022. 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 $ 85,315 $ 84,424 Due after one year through five years 1,118,538 1,017,205 Due after five years through ten years 39,021 32,807 Due after ten years 31,474 29,068 Mortgage-backed securities 739,896 637,690 Total debt securities available-for-sale $ 2,014,244 $ 1,801,194
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 September 30, 2022, the Company’s available-for-sale securities portfolio consisted of 748 securities, 728 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 September 30, 2022 U.S. Treasury and Federal agencies securities $ 344,947 $ (19,238) $ 686,630 $ (80,429) $ 1,031,577 $ (99,667) U.S. States and political subdivisions securities 80,326 (5,194) 33,630 (5,583) 113,956 (10,777) Mortgage-backed securities - Federal agencies 332,094 (39,091) 304,448 (63,119) 636,542 (102,210) Corporate debt securities 16,113 (383) — — 16,113 (383) Foreign government and other securities 487 (13) 96 (4) 583 (17) Total debt securities available-for-sale $ 773,967 $ (63,919) $ 1,024,804 $ (149,135) $ 1,798,771 $ (213,054) December 31, 2021 U.S. Treasury and Federal agencies securities $ 789,536 $ (10,728) $ 84,191 $ (2,290) $ 873,727 $ (13,018) U.S. States and political subdivisions securities 39,585 (980) 4,875 (149) 44,460 (1,129) Mortgage-backed securities - Federal agencies 454,413 (7,312) 35,232 (1,147) 489,645 (8,459) Corporate debt securities — — — — — — Foreign government and other securities 598 (2) — — 598 (2) Total debt securities available-for-sale $ 1,284,132 $ (19,022) $ 124,298 $ (3,586) $ 1,408,430 $ (22,608)
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 Nine Months Ended (Dollars in thousands) 2022 2021 2022 2021 Gross realized gains $ — $ — $ — $ 221 Gross realized losses — — — (901) Net realized gains (losses) $ — $ — $ — $ (680)

Loan and Lease Financings (Tabl

Loan and Lease Financings (Tables)	9 Months Ended
	Sep. 30, 2022
Receivables [Abstract]
Schedule of amortized cost of loans and leases, segregated by portfolio segment, credit quality rating and year of origination	The following table shows the amortized cost of loans and leases, segregated by portfolio segment, credit quality rating and year of origination as of September 30, 2022. Term Loans and Leases by Origination Year (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and agricultural Grades 1-6 $ 119,558 $ 126,915 $ 86,893 $ 39,376 $ 19,329 $ 18,808 $ 397,057 $ — $ 807,936 Grades 7-12 3,094 2,897 124 2,358 2,509 1,399 15,445 — 27,826 Total commercial and agricultural 122,652 129,812 87,017 41,734 21,838 20,207 412,502 — 835,762 Solar Grades 1-6 69,556 115,921 37,240 72,710 18,631 33,467 — — 347,525 Grades 7-12 — — 1,103 5,732 705 3,570 — — 11,110 Total solar 69,556 115,921 38,343 78,442 19,336 37,037 — — 358,635 Auto and light truck Grades 1-6 394,772 186,699 74,388 41,687 12,935 4,713 — — 715,194 Grades 7-12 6,569 5,228 7,419 3,416 2,511 2,987 — — 28,130 Total auto and light truck 401,341 191,927 81,807 45,103 15,446 7,700 — — 743,324 Medium and heavy duty truck Grades 1-6 114,007 72,478 50,579 38,281 12,679 4,986 — — 293,010 Grades 7-12 — — — — — 58 — — 58 Total medium and heavy duty truck 114,007 72,478 50,579 38,281 12,679 5,044 — — 293,068 Aircraft Grades 1-6 317,174 292,885 239,238 60,565 33,028 47,775 4,530 — 995,195 Grades 7-12 592 — 578 — — 1,630 — — 2,800 Total aircraft 317,766 292,885 239,816 60,565 33,028 49,405 4,530 — 997,995 Construction equipment Grades 1-6 359,702 234,401 120,431 68,480 24,452 7,729 22,426 2,975 840,596 Grades 7-12 22,162 9,618 2,466 2,081 234 55 — 1,480 38,096 Total construction equipment 381,864 244,019 122,897 70,561 24,686 7,784 22,426 4,455 878,692 Commercial real estate Grades 1-6 208,585 170,211 128,762 115,556 108,539 189,259 296 — 921,208 Grades 7-12 280 838 7,614 6,138 48 1,297 — — 16,215 Total commercial real estate 208,865 171,049 136,376 121,694 108,587 190,556 296 — 937,423 Residential real estate and home equity Performing 89,237 101,190 101,388 35,269 7,274 85,733 142,535 3,779 566,405 Nonperforming — 186 926 — — 669 188 228 2,197 Total residential real estate and home equity 89,237 101,376 102,314 35,269 7,274 86,402 142,723 4,007 568,602 Consumer Performing 59,856 39,184 15,115 9,045 3,854 1,032 20,323 — 148,409 Nonperforming — 69 30 40 15 14 — — 168 Total consumer $ 59,856 $ 39,253 $ 15,145 $ 9,085 $ 3,869 $ 1,046 $ 20,323 $ — $ 148,577 The following table shows the amortized cost of loans and leases, segregated by portfolio segment, credit quality rating and year of origination as of December 31, 2021. Term Loans and Leases by Origination Year (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and agricultural Grades 1-6 $ 233,512 $ 123,947 $ 60,744 $ 55,231 $ 32,545 $ 20,184 $ 364,460 $ — $ 890,623 Grades 7-12 4,682 194 3,667 2,373 2,004 484 14,685 — 28,089 Total commercial and agricultural 238,194 124,141 64,411 57,604 34,549 20,668 379,145 — 918,712 Solar Grades 1-6 159,244 42,073 81,593 18,979 34,889 3,780 — — 340,558 Grades 7-12 — 1,138 5,882 724 — — — — 7,744 Total solar 159,244 43,211 87,475 19,703 34,889 3,780 — — 348,302 Auto and light truck Grades 1-6 331,105 122,709 72,580 24,965 11,814 901 — — 564,074 Grades 7-12 10,828 11,752 7,467 3,859 4,876 919 — — 39,701 Total auto and light truck 341,933 134,461 80,047 28,824 16,690 1,820 — — 603,775 Medium and heavy duty truck Grades 1-6 92,252 68,354 57,967 23,210 12,419 5,265 — — 259,467 Grades 7-12 — — — — — 273 — — 273 Total medium and heavy duty truck 92,252 68,354 57,967 23,210 12,419 5,538 — — 259,740 Aircraft Grades 1-6 384,895 290,897 85,916 45,848 47,025 29,435 4,844 — 888,860 Grades 7-12 1,141 649 — 4,670 454 2,627 — — 9,541 Total aircraft 386,036 291,546 85,916 50,518 47,479 32,062 4,844 — 898,401 Construction equipment Grades 1-6 314,044 201,032 109,029 47,693 13,501 5,031 18,937 4,594 713,861 Grades 7-12 26,650 8,709 1,983 797 80 — — 2,193 40,412 Total construction equipment 340,694 209,741 111,012 48,490 13,581 5,031 18,937 6,787 754,273 Commercial real estate Grades 1-6 230,701 150,144 146,374 141,838 126,642 112,243 391 — 908,333 Grades 7-12 218 5,921 7,159 491 6,208 1,011 — — 21,008 Total commercial real estate 230,919 156,065 153,533 142,329 132,850 113,254 391 — 929,341 Residential real estate and home equity Performing 105,345 114,682 41,185 9,706 11,720 89,646 122,281 4,555 499,120 Nonperforming — — — 13 421 655 293 88 1,470 Total residential real estate and home equity 105,345 114,682 41,185 9,719 12,141 90,301 122,574 4,643 500,590 Consumer Performing 58,866 24,307 17,031 8,284 2,263 697 21,378 — 132,826 Nonperforming 37 107 43 30 33 4 — — 254 Total consumer $ 58,903 $ 24,414 $ 17,074 $ 8,314 $ 2,296 $ 701 $ 21,378 $ — $ 133,080
Schedule of amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status	The following table shows the amortized cost of loans and leases, segregated by portfolio segment, 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 Nonaccrual Total September 30, 2022 Commercial and agricultural $ 834,918 $ 360 $ 41 $ — $ 835,319 $ 443 $ 835,762 Solar 358,635 — — — 358,635 — 358,635 Auto and light truck 725,421 234 — — 725,655 17,669 743,324 Medium and heavy duty truck 293,010 — — — 293,010 58 293,068 Aircraft 995,787 — 1,630 — 997,417 578 997,995 Construction equipment 872,660 1,568 217 — 874,445 4,247 878,692 Commercial real estate 934,804 — — — 934,804 2,619 937,423 Residential real estate and home equity 565,712 508 185 166 566,571 2,031 568,602 Consumer 147,874 446 89 — 148,409 168 148,577 Total $ 5,728,821 $ 3,116 $ 2,162 $ 166 $ 5,734,265 $ 27,813 $ 5,762,078 December 31, 2021 Commercial and agricultural $ 916,659 $ — $ — $ — $ 916,659 $ 2,053 $ 918,712 Solar 348,302 — — — 348,302 — 348,302 Auto and light truck 579,605 — — — 579,605 24,170 603,775 Medium and heavy duty truck 259,467 — — — 259,467 273 259,740 Aircraft 894,092 1,130 2,530 — 897,752 649 898,401 Construction equipment 745,870 1,313 — — 747,183 7,090 754,273 Commercial real estate 926,345 — — — 926,345 2,996 929,341 Residential real estate and home equity 498,854 212 54 245 499,365 1,225 500,590 Consumer 132,464 332 30 4 132,830 250 133,080 Total $ 5,301,658 $ 2,987 $ 2,614 $ 249 $ 5,307,508 $ 38,706 $ 5,346,214
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 September 30, 2022 and December 31, 2021. (Dollars in thousands) September 30, December 31, Performing TDRs $ — $ 319 Nonperforming TDRs 4,042 6,742 Total TDRs $ 4,042 $ 7,061

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)	9 Months Ended
	Sep. 30, 2022
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Schedule of changes in allowance for loan and lease losses, segregated by portfolio segment	The following table shows the changes in the allowance for loan and lease losses, segregated by portfolio segment, for the three months ended September 30, 2022 and 2021. (Dollars in thousands) Commercial and Solar Auto and Medium Aircraft Construction Commercial Residential Consumer Total September 30, 2022 Balance, beginning of period $ 16,110 $ 6,652 $ 19,057 $ 6,709 $ 36,987 $ 21,171 $ 18,416 $ 5,779 $ 1,984 $ 132,865 Charge-offs 414 — 66 — — — — 17 223 720 Recoveries 39 — 91 — 176 11 17 1 89 424 Net charge-offs (recoveries) 375 — (25) — (176) (11) (17) 16 134 296 Provision (recovery of provision) 412 142 (85) 304 132 1,667 57 306 232 3,167 Balance, end of period $ 16,147 $ 6,794 $ 18,997 $ 7,013 $ 37,295 $ 22,849 $ 18,490 $ 6,069 $ 2,082 $ 135,736 September 30, 2021 Balance, beginning of period $ 14,832 $ 5,867 $ 27,221 $ 5,888 $ 35,301 $ 17,908 $ 22,578 $ 5,066 $ 1,700 $ 136,361 Charge-offs 21 — 407 — — 551 — — 98 1,077 Recoveries 176 — 479 — 153 170 — 3 49 1,030 Net charge-offs (recoveries) (155) — (72) — (153) 381 — (3) 49 47 Provision (recovery of provision) 179 (15) (1,451) (158) 975 (1,083) (1,253) 96 151 (2,559) Balance, end of period $ 15,166 $ 5,852 $ 25,842 $ 5,730 $ 36,429 $ 16,444 $ 21,325 $ 5,165 $ 1,802 $ 133,755 The following table shows the changes in the allowance for loan and lease losses, segregated by portfolio segment, for the nine months ended September 30, 2022 and 2021. (Dollars in thousands) Commercial and Solar Auto and Medium Aircraft Construction Commercial Residential Consumer Total September 30, 2022 Balance, beginning of period $ 15,409 $ 6,585 $ 19,624 $ 6,015 $ 33,628 $ 19,673 $ 19,691 $ 5,084 $ 1,783 $ 127,492 Charge-offs 453 — 98 — — 48 — 27 545 1,171 Recoveries 46 — 212 — 653 11 43 129 418 1,512 Net charge-offs (recoveries) 407 — (114) — (653) 37 (43) (102) 127 (341) Provision (recovery of provision) 1,145 209 (741) 998 3,014 3,213 (1,244) 883 426 7,903 Balance, end of period $ 16,147 $ 6,794 $ 18,997 $ 7,013 $ 37,295 $ 22,849 $ 18,490 $ 6,069 $ 2,082 $ 135,736 September 30, 2021 Balance, beginning of period $ 16,680 $ 5,549 $ 28,926 $ 6,400 $ 34,053 $ 19,166 $ 22,758 $ 5,374 $ 1,748 $ 140,654 Charge-offs 307 — 5,060 — — 559 — 42 355 6,323 Recoveries 694 — 664 — 513 424 19 14 282 2,610 Net charge-offs (recoveries) (387) — 4,396 — (513) 135 (19) 28 73 3,713 Provision (recovery of provision) (1,901) 303 1,312 (670) 1,863 (2,587) (1,452) (181) 127 (3,186) Balance, end of period $ 15,166 $ 5,852 $ 25,842 $ 5,730 $ 36,429 $ 16,444 $ 21,325 $ 5,165 $ 1,802 $ 133,755
Schedule of changes in allowance for credit losses on unfunded loan commitments	The following table shows the changes in the liability for credit losses on unfunded loan commitments. Three Months Ended Nine Months Ended (Dollars in thousands) 2022 2021 2022 2021 Balance, beginning of period $ 5,497 $ 4,317 $ 4,196 $ 4,499 (Recovery of provision) provision (281) 46 1,020 (136) Balance, end of period $ 5,216 $ 4,363 $ 5,216 $ 4,363

Lease Investments (Tables)

Lease Investments (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Schedule of the components of income from direct finance and operating lease equipment	The following table shows interest income recognized from direct finance lease payments and operating lease equipment rental income and related depreciation expense. Three Months Ended Nine Months Ended (Dollars in thousands) 2022 2021 2022 2021 Direct finance leases: Interest income on lease receivable $ 2,402 $ 1,629 $ 6,112 $ 4,880 Operating leases: Income related to lease payments $ 2,761 $ 3,946 $ 9,718 $ 12,830 Depreciation expense 2,233 3,239 7,912 10,562

Mortgage Servicing Rights (Tabl

Mortgage Servicing Rights (Tables)	9 Months Ended
	Sep. 30, 2022
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 Nine Months Ended (Dollars in thousands) 2022 2021 2022 2021 Mortgage servicing rights: Balance at beginning of period $ 4,443 $ 4,678 $ 4,671 $ 4,616 Additions 152 395 660 1,566 Amortization (297) (554) (1,033) (1,663) Carrying value before valuation allowance at end of period 4,298 4,519 4,298 4,519 Valuation allowance: Balance at beginning of period — (223) — (812) Impairment recoveries — 223 — 812 Balance at end of period $ — $ — $ — $ — Net carrying value of mortgage servicing rights at end of period $ 4,298 $ 4,519 $ 4,298 $ 4,519 Fair value of mortgage servicing rights at end of period $ 7,493 $ 4,999 $ 7,493 $ 4,999

Commitments and Financial Ins_2

Commitments and Financial Instruments with Off-Balance-Sheet Risk (Tables)	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
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) September 30, December 31, Amounts of commitments: Loan commitments to extend credit $ 1,199,066 $ 1,148,984 Standby letters of credit $ 18,761 $ 24,657 Commercial and similar letters of credit $ 400 $ 8,531

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2022
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 September 30, 2022 Interest rate swap contracts $ 947,564 Other assets $ 26,918 Other liabilities $ 27,424 Loan commitments 1,460 Mortgages held for sale 28 N/A — Forward contracts - mortgage loan 2,250 Mortgages held for sale 82 N/A — Total $ 951,274 $ 27,028 $ 27,424 December 31, 2021 Interest rate swap contracts $ 1,064,721 Other assets $ 20,735 Other liabilities $ 21,172 Loan commitments 15,086 Mortgages held for sale 452 N/A — Forward contracts - mortgage loan 22,000 N/A — Mortgages held for sale 11 Total $ 1,101,807 $ 21,187 $ 21,183
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 Consolidated Statements of Income for non-hedging derivative financial instruments. Gain (loss) Three Months Ended Nine Months Ended (Dollars in thousands) Statement of Income classification 2022 2021 2022 2021 Interest rate swap contracts Other expense $ (252) $ 101 $ (69) $ 420 Interest rate swap contracts Other income 83 69 83 307 Loan commitments Mortgage banking (197) (75) (424) (704) Forward contracts - mortgage loan Mortgage banking 83 246 93 512 Total $ (283) $ 341 $ (317) $ 535
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 Financial Instruments Cash Collateral Received Net Amount September 30, 2022 Interest rate swaps $ 26,918 $ — $ 26,918 $ — $ 25,735 $ 1,183 December 31, 2021 Interest rate swaps $ 24,436 $ 3,701 $ 20,735 $ — $ — $ 20,735
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 September 30, 2022 Interest rate swaps $ 27,424 $ — $ 27,424 $ — $ — $ 27,424 Repurchase agreements 130,192 — 130,192 130,192 — — Total $ 157,616 $ — $ 157,616 $ 130,192 $ — $ 27,424 December 31, 2021 Interest rate swaps $ 24,873 $ 3,701 $ 21,172 $ 20,498 $ — $ 674 Repurchase agreements 194,727 — 194,727 194,727 — — Total $ 219,600 $ 3,701 $ 215,899 $ 215,225 $ — $ 674

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	9 Months Ended
	Sep. 30, 2022
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) September 30, 2022 December 31, 2021 Investment carrying amount $ 55,546 $ 35,968 Unfunded capital and other commitments 51,428 29,670 Maximum exposure to loss 50,048 50,319
Summary of subordinated notes	The following table shows subordinated notes at September 30, 2022. (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 4.77 % 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)	9 Months Ended
	Sep. 30, 2022
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 Nine Months Ended (Dollars in thousands - except per share amounts) 2022 2021 2022 2021 Distributed earnings allocated to common stock $ 7,890 $ 7,749 $ 23,230 $ 22,681 Undistributed earnings allocated to common stock 24,571 24,472 65,489 67,422 Net earnings allocated to common stock 32,461 32,221 88,719 90,103 Net earnings allocated to participating securities 276 262 722 708 Net income allocated to common stock and participating securities $ 32,737 $ 32,483 $ 89,441 $ 90,811 Weighted average shares outstanding for basic earnings per common share 24,656,736 24,919,956 24,697,106 25,126,703 Dilutive effect of stock compensation — — — — Weighted average shares outstanding for diluted earnings per common share 24,656,736 24,919,956 24,697,106 25,126,703 Basic earnings per common share $ 1.32 $ 1.29 $ 3.59 $ 3.59 Diluted earnings per common share $ 1.32 $ 1.29 $ 3.59 $ 3.59

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Tables)	9 Months Ended
	Sep. 30, 2022
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 September 30, Nine Months Ended September 30, Affected Line Item in the Statements of Income (Dollars in thousands) 2022 2021 2022 2021 Realized losses included in net income $ — $ — $ — $ (680) Losses on investment securities available-for-sale — — — (680) Income before income taxes Tax effect — — — 164 Income tax expense Net of tax $ — $ — $ — $ (516) Net income

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2022
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 Aggregate Excess of fair value carrying amount over (under) unpaid principal September 30, 2022 Mortgages held for sale reported at fair value $ 3,058 $ 2,942 $ 116 (1) December 31, 2021 Mortgages held for sale reported at fair value $ 13,284 $ 12,456 $ 828 (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 September 30, 2022 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 570,045 $ 461,532 $ — $ 1,031,577 U.S. States and political subdivisions securities — 110,833 4,398 115,231 Mortgage-backed securities — Federal agencies — 637,690 — 637,690 Corporate debt securities — 16,113 — 16,113 Foreign government and other securities — 583 — 583 Total debt securities available-for-sale 570,045 1,226,751 4,398 1,801,194 Mortgages held for sale — 3,058 — 3,058 Accrued income and other assets (interest rate swap agreements) — 26,918 — 26,918 Total $ 570,045 $ 1,256,727 $ 4,398 $ 1,831,170 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 27,424 $ — $ 27,424 Total $ — $ 27,424 $ — $ 27,424 December 31, 2021 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 561,950 $ 522,056 $ — $ 1,084,006 U.S. States and political subdivisions securities — 93,852 1,849 95,701 Mortgage-backed securities — Federal agencies — 659,727 — 659,727 Corporate debt securities — 23,009 — 23,009 Foreign government and other securities — 598 — 598 Total debt securities available-for-sale 561,950 1,299,242 1,849 1,863,041 Mortgages held for sale — 13,284 — 13,284 Accrued income and other assets (interest rate swap agreements) — 20,735 — 20,735 Total $ 561,950 $ 1,333,261 $ 1,849 $ 1,897,060 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 21,172 $ — $ 21,172 Total $ — $ 21,172 $ — $ 21,172
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 September 30, 2022 and 2021. (Dollars in thousands) U.S. States and Beginning balance July 1, 2022 $ 4,515 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (loss) (32) Purchases — Issuances — Sales — Settlements — Maturities (85) Transfers into Level 3 — Transfers out of Level 3 — Ending balance September 30, 2022 $ 4,398 Beginning balance July 1, 2021 $ 1,921 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (loss) (7) Purchases — Issuances — Sales — Settlements — Maturities (85) Transfers into Level 3 — Transfers out of Level 3 — Ending balance September 30, 2021 $ 1,829
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 September 30, 2022 Collateral-dependent impaired loans $ — $ — $ 851 $ 851 Accrued income and other assets (mortgage servicing rights) — — 4,298 4,298 Accrued income and other assets (repossessions) — — 26 26 Total $ — $ — $ 5,175 $ 5,175 December 31, 2021 Collateral-dependent impaired loans $ — $ — $ 571 $ 571 Accrued income and other assets (mortgage servicing rights) — — 4,671 4,671 Accrued income and other assets (repossessions) — — 861 861 Total $ — $ — $ 6,103 $ 6,103
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 September 30, 2022 Assets: Cash and due from banks $ 86,952 $ 86,952 $ 86,952 $ — $ — Federal funds sold and interest bearing deposits with other banks 30,652 30,652 30,652 — — Investment securities, available-for-sale 1,801,194 1,801,194 570,045 1,226,751 4,398 Other investments 25,538 25,538 25,538 — — Mortgages held for sale 3,058 3,058 — 3,058 — Loans and leases, net of allowance for loan and lease losses 5,626,342 5,533,010 — — 5,533,010 Mortgage servicing rights 4,298 7,493 — — 7,493 Accrued interest receivable 20,625 20,625 — 20,625 — Interest rate swaps 26,918 26,918 — 26,918 — Liabilities: Deposits $ 6,621,231 $ 6,602,827 $ 5,842,321 $ 760,506 $ — Short-term borrowings 340,462 340,462 143,181 197,281 — Long-term debt and mandatorily redeemable securities 47,587 46,052 — 46,052 — Subordinated notes 58,764 48,394 — 48,394 — Accrued interest payable 3,133 3,133 — 3,133 — Interest rate swaps 27,424 27,424 — 27,424 — Off-balance-sheet instruments * — 120 — 120 — December 31, 2021 Assets: Cash and due from banks $ 54,420 $ 54,420 $ 54,420 $ — $ — Federal funds sold and interest bearing deposits with other banks 470,767 470,767 470,767 — — Investment securities, available-for-sale 1,863,041 1,863,041 561,950 1,299,242 1,849 Other investments 27,189 27,189 27,189 — — Mortgages held for sale 13,284 13,284 — 13,284 — Loans and leases, net of allowance for loan and lease losses 5,218,722 5,269,551 — — 5,269,551 Mortgage servicing rights 4,671 5,640 — — 5,640 Accrued interest receivable 17,760 17,760 — 17,760 — Interest rate swaps 20,735 20,735 — 20,735 — Liabilities: Deposits $ 6,679,065 $ 6,680,163 $ 5,794,928 $ 885,235 $ — Short-term borrowings 200,027 200,027 192,801 7,226 — Long-term debt and mandatorily redeemable securities 71,251 71,305 — 71,305 — Subordinated notes 58,764 58,553 — 58,553 — Accrued interest payable 1,885 1,885 — 1,885 — Interest rate swaps 21,172 21,172 — 21,172 — Off-balance-sheet instruments * — 364 — 364 — * 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 measured at fair value on a recurring basis. (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Weighted Average September 30, 2022 Debt securities available-for sale Direct placement municipal securities $ 4,398 Discounted cash flows Credit spread assumption 4.17% - 4.97% 4.79 % December 31, 2021 Debt securities available-for sale Direct placement municipal securities $ 1,849 Discounted cash flows Credit spread assumption 0.04% - 2.31% 1.58 %
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 Weighted Average September 30, 2022 Collateral-dependent impaired loans $ 851 $ 851 Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 20% - 90% 36.2 % Mortgage servicing rights 4,298 7,493 Discounted cash flows Constant prepayment rate (CPR) 7.4% - 10.4% 9.6 % Discount rate 11.9% - 14.7% 12.0 % Repossessions 26 30 Appraisals, trade publications and auction values Discount for lack of marketability 0% - 13% 13 % December 31, 2021 Collateral-dependent impaired loans $ 571 $ 571 Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 20% - 90% 43.1 % Mortgage servicing rights 4,671 5,640 Discounted cash flows Constant prepayment rate (CPR) 11.8% - 18.5% 16.4 % Discount rate 8.6% - 11.5% 8.8 % Repossessions 861 942 Appraisals, trade publications and auction values Discount for lack of marketability 0% - 21% 2 %

Accounting Policies (Details)

Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2022
Minimum
Summary of Significant Accounting Policies [Line Items]
Period of sustained performance required to change from non-performing to performing status	6 months

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Due in one year or less	$ 85,315
Due after one year through five years	1,118,538
Due after five years through ten years	39,021
Due after ten years	31,474
Mortgage-backed securities	739,896
Total debt securities available-for-sale	2,014,244	$ 1,876,031
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Due in one year or less	84,424
Due after one year through five years	1,017,205
Due after five years through ten years	32,807
Due after ten years	29,068
Mortgage-backed securities	637,690
Total debt securities available-for-sale	1,801,194	1,863,041
Accrued interest receivable on investment securities available-for-sale	5,300	4,800
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	1,131,244	1,093,780
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	1,031,577	1,084,006
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	126,008	95,700
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	115,231	95,701
Mortgage-backed securities - Federal agencies
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Total debt securities available-for-sale	739,896	663,441
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	637,690	659,727
Corporate debt securities
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Total debt securities available-for-sale	16,496	22,510
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	16,113	23,009
Foreign government and other securities
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Total debt securities available-for-sale	600	600
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	$ 583	$ 598

Investment Securities (Details

Investment Securities (Details 2) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	$ 2,014,244		$ 2,014,244		$ 1,876,031
Gross Unrealized Gains	4		4		9,618
Gross Unrealized Losses	(213,054)		(213,054)		(22,608)
Investment securities available-for-sale	1,801,194		1,801,194		1,863,041
Fair Value
Less than 12 Months	773,967		773,967		1,284,132
12 months or Longer	1,024,804		1,024,804		124,298
Total fair value	1,798,771		1,798,771		1,408,430
Unrealized Losses
Less than 12 Months	(63,919)		(63,919)		(19,022)
12 months or Longer	(149,135)		(149,135)		(3,586)
Total unrealized losses	(213,054)		(213,054)		(22,608)
Gross realized gains and losses
Gross realized gains	0	$ 0	0	$ 221
Gross realized losses	0	0	0	(901)
Net realized (losses) gains	0	$ 0	0	$ (680)
Investment securities pledged as collateral	$ 264,350		$ 264,350		351,130
Number of available-for-sale debt securities	748		748
Number of available-for-sale debt securities in an unrealized loss position	728		728
U.S. Treasury and Federal agencies securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	$ 1,131,244		$ 1,131,244		1,093,780
Gross Unrealized Gains	0		0		3,244
Gross Unrealized Losses	(99,667)		(99,667)		(13,018)
Investment securities available-for-sale	1,031,577		1,031,577		1,084,006
Fair Value
Less than 12 Months	344,947		344,947		789,536
12 months or Longer	686,630		686,630		84,191
Total fair value	1,031,577		1,031,577		873,727
Unrealized Losses
Less than 12 Months	(19,238)		(19,238)		(10,728)
12 months or Longer	(80,429)		(80,429)		(2,290)
Total unrealized losses	(99,667)		(99,667)		(13,018)
U.S. States and political subdivisions securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	126,008		126,008		95,700
Gross Unrealized Gains	0		0		1,130
Gross Unrealized Losses	(10,777)		(10,777)		(1,129)
Investment securities available-for-sale	115,231		115,231		95,701
Fair Value
Less than 12 Months	80,326		80,326		39,585
12 months or Longer	33,630		33,630		4,875
Total fair value	113,956		113,956		44,460
Unrealized Losses
Less than 12 Months	(5,194)		(5,194)		(980)
12 months or Longer	(5,583)		(5,583)		(149)
Total unrealized losses	(10,777)		(10,777)		(1,129)
Mortgage-backed securities - Federal agencies
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	739,896		739,896		663,441
Gross Unrealized Gains	4		4		4,745
Gross Unrealized Losses	(102,210)		(102,210)		(8,459)
Investment securities available-for-sale	637,690		637,690		659,727
Fair Value
Less than 12 Months	332,094		332,094		454,413
12 months or Longer	304,448		304,448		35,232
Total fair value	636,542		636,542		489,645
Unrealized Losses
Less than 12 Months	(39,091)		(39,091)		(7,312)
12 months or Longer	(63,119)		(63,119)		(1,147)
Total unrealized losses	(102,210)		(102,210)		(8,459)
Corporate debt securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	16,496		16,496		22,510
Gross Unrealized Gains	0		0		499
Gross Unrealized Losses	(383)		(383)		0
Investment securities available-for-sale	16,113		16,113		23,009
Fair Value
Less than 12 Months	16,113		16,113		0
12 months or Longer	0		0		0
Total fair value	16,113		16,113		0
Unrealized Losses
Less than 12 Months	(383)		(383)		0
12 months or Longer	0		0		0
Total unrealized losses	(383)		(383)		0
Foreign government and other securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	600		600		600
Gross Unrealized Gains	0		0		0
Gross Unrealized Losses	(17)		(17)		(2)
Investment securities available-for-sale	583		583		598
Fair Value
Less than 12 Months	487		487		598
12 months or Longer	96		96		0
Total fair value	583		583		598
Unrealized Losses
Less than 12 Months	(13)		(13)		(2)
12 months or Longer	(4)		(4)		0
Total unrealized losses	$ (17)		$ (17)		$ (2)

Loan and Lease Financings (Deta

Loan and Lease Financings (Details)	9 Months Ended
	Sep. 30, 2022 USD ($) item class	Dec. 31, 2021 USD ($)
Receivables [Abstract]
Number of methods to assess credit risk | item	2
Loan and Lease Financings
Number of methods to assess credit risk | item	2
PPP loan balance	$ 6,350,000
PPP loans receivable deferred income	$ 130,000
Number of domestic aircraft loan pools | class	2
Amortized cost of loans and leases	$ 5,762,078,000	$ 5,346,214,000
Commercial and agricultural
Loan and Lease Financings
Financing receivable originated during current fiscal year	122,652,000	238,194,000
Financing receivable originated one year prior to current fiscal year	129,812,000	124,141,000
Financing receivable originated two years prior to current fiscal year	87,017,000	64,411,000
Financing receivable originated three years prior to current fiscal year	41,734,000	57,604,000
Financing receivable originated four years prior to current fiscal year	21,838,000	34,549,000
Financing receivable originated five years or more prior to current fiscal year	20,207,000	20,668,000
Revolving Loans	412,502,000	379,145,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	$ 835,762,000	918,712,000
Commercial and agricultural | Minimum
Loan and Lease Financings
Expected life of underlying collateral	3 years
Commercial and agricultural | Maximum
Loan and Lease Financings
Expected life of underlying collateral	7 years
Solar
Loan and Lease Financings
Financing receivable originated during current fiscal year	$ 69,556,000	159,244,000
Financing receivable originated one year prior to current fiscal year	115,921,000	43,211,000
Financing receivable originated two years prior to current fiscal year	38,343,000	87,475,000
Financing receivable originated three years prior to current fiscal year	78,442,000	19,703,000
Financing receivable originated four years prior to current fiscal year	19,336,000	34,889,000
Financing receivable originated five years or more prior to current fiscal year	37,037,000	3,780,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	358,635,000	348,302,000
Auto and light truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	401,341,000	341,933,000
Financing receivable originated one year prior to current fiscal year	191,927,000	134,461,000
Financing receivable originated two years prior to current fiscal year	81,807,000	80,047,000
Financing receivable originated three years prior to current fiscal year	45,103,000	28,824,000
Financing receivable originated four years prior to current fiscal year	15,446,000	16,690,000
Financing receivable originated five years or more prior to current fiscal year	7,700,000	1,820,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	$ 743,324,000	603,775,000
Auto and light truck | Minimum
Loan and Lease Financings
Loan amortization period	18 months
Direct finance lease term	3 years
Auto and light truck | Maximum
Loan and Lease Financings
Loan amortization period	4 years
Direct finance lease term	7 years
Medium and heavy duty truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	$ 114,007,000	92,252,000
Financing receivable originated one year prior to current fiscal year	72,478,000	68,354,000
Financing receivable originated two years prior to current fiscal year	50,579,000	57,967,000
Financing receivable originated three years prior to current fiscal year	38,281,000	23,210,000
Financing receivable originated four years prior to current fiscal year	12,679,000	12,419,000
Financing receivable originated five years or more prior to current fiscal year	5,044,000	5,538,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	$ 293,068,000	259,740,000
Medium and heavy duty truck | Minimum
Loan and Lease Financings
Period of amortization to reach equity position in collateral	3 years
Medium and heavy duty truck | Maximum
Loan and Lease Financings
Period of amortization to reach equity position in collateral	4 years
Aircraft
Loan and Lease Financings
Financing receivable originated during current fiscal year	$ 317,766,000	386,036,000
Financing receivable originated one year prior to current fiscal year	292,885,000	291,546,000
Financing receivable originated two years prior to current fiscal year	239,816,000	85,916,000
Financing receivable originated three years prior to current fiscal year	60,565,000	50,518,000
Financing receivable originated four years prior to current fiscal year	33,028,000	47,479,000
Financing receivable originated five years or more prior to current fiscal year	49,405,000	32,062,000
Revolving Loans	4,530,000	4,844,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	$ 997,995,000	898,401,000
Aircraft | Minimum
Loan and Lease Financings
Loan amortization period	10 years
Aircraft | Maximum
Loan and Lease Financings
Loan amortization period	15 years
Construction equipment
Loan and Lease Financings
Financing receivable originated during current fiscal year	$ 381,864,000	340,694,000
Financing receivable originated one year prior to current fiscal year	244,019,000	209,741,000
Financing receivable originated two years prior to current fiscal year	122,897,000	111,012,000
Financing receivable originated three years prior to current fiscal year	70,561,000	48,490,000
Financing receivable originated four years prior to current fiscal year	24,686,000	13,581,000
Financing receivable originated five years or more prior to current fiscal year	7,784,000	5,031,000
Revolving Loans	22,426,000	18,937,000
Revolving Loans Converted to Term	4,455,000	6,787,000
Amortized cost of loans and leases	878,692,000	754,273,000
Commercial real estate
Loan and Lease Financings
Financing receivable originated during current fiscal year	208,865,000	230,919,000
Financing receivable originated one year prior to current fiscal year	171,049,000	156,065,000
Financing receivable originated two years prior to current fiscal year	136,376,000	153,533,000
Financing receivable originated three years prior to current fiscal year	121,694,000	142,329,000
Financing receivable originated four years prior to current fiscal year	108,587,000	132,850,000
Financing receivable originated five years or more prior to current fiscal year	190,556,000	113,254,000
Revolving Loans	296,000	391,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	937,423,000	929,341,000
Residential real estate and home equity
Loan and Lease Financings
Financing receivable originated during current fiscal year	89,237,000	105,345,000
Financing receivable originated one year prior to current fiscal year	101,376,000	114,682,000
Financing receivable originated two years prior to current fiscal year	102,314,000	41,185,000
Financing receivable originated three years prior to current fiscal year	35,269,000	9,719,000
Financing receivable originated four years prior to current fiscal year	7,274,000	12,141,000
Financing receivable originated five years or more prior to current fiscal year	86,402,000	90,301,000
Revolving Loans	142,723,000	122,574,000
Revolving Loans Converted to Term	4,007,000	4,643,000
Amortized cost of loans and leases	568,602,000	500,590,000
Consumer
Loan and Lease Financings
Financing receivable originated during current fiscal year	59,856,000	58,903,000
Financing receivable originated one year prior to current fiscal year	39,253,000	24,414,000
Financing receivable originated two years prior to current fiscal year	15,145,000	17,074,000
Financing receivable originated three years prior to current fiscal year	9,085,000	8,314,000
Financing receivable originated four years prior to current fiscal year	3,869,000	2,296,000
Financing receivable originated five years or more prior to current fiscal year	1,046,000	701,000
Revolving Loans	20,323,000	21,378,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	148,577,000	133,080,000
Credit Quality Grades 1-6 | Commercial and agricultural
Loan and Lease Financings
Financing receivable originated during current fiscal year	119,558,000	233,512,000
Financing receivable originated one year prior to current fiscal year	126,915,000	123,947,000
Financing receivable originated two years prior to current fiscal year	86,893,000	60,744,000
Financing receivable originated three years prior to current fiscal year	39,376,000	55,231,000
Financing receivable originated four years prior to current fiscal year	19,329,000	32,545,000
Financing receivable originated five years or more prior to current fiscal year	18,808,000	20,184,000
Revolving Loans	397,057,000	364,460,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	807,936,000	890,623,000
Credit Quality Grades 1-6 | Solar
Loan and Lease Financings
Financing receivable originated during current fiscal year	69,556,000	159,244,000
Financing receivable originated one year prior to current fiscal year	115,921,000	42,073,000
Financing receivable originated two years prior to current fiscal year	37,240,000	81,593,000
Financing receivable originated three years prior to current fiscal year	72,710,000	18,979,000
Financing receivable originated four years prior to current fiscal year	18,631,000	34,889,000
Financing receivable originated five years or more prior to current fiscal year	33,467,000	3,780,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	347,525,000	340,558,000
Credit Quality Grades 1-6 | Auto and light truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	394,772,000	331,105,000
Financing receivable originated one year prior to current fiscal year	186,699,000	122,709,000
Financing receivable originated two years prior to current fiscal year	74,388,000	72,580,000
Financing receivable originated three years prior to current fiscal year	41,687,000	24,965,000
Financing receivable originated four years prior to current fiscal year	12,935,000	11,814,000
Financing receivable originated five years or more prior to current fiscal year	4,713,000	901,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	715,194,000	564,074,000
Credit Quality Grades 1-6 | Medium and heavy duty truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	114,007,000	92,252,000
Financing receivable originated one year prior to current fiscal year	72,478,000	68,354,000
Financing receivable originated two years prior to current fiscal year	50,579,000	57,967,000
Financing receivable originated three years prior to current fiscal year	38,281,000	23,210,000
Financing receivable originated four years prior to current fiscal year	12,679,000	12,419,000
Financing receivable originated five years or more prior to current fiscal year	4,986,000	5,265,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	293,010,000	259,467,000
Credit Quality Grades 1-6 | Aircraft
Loan and Lease Financings
Financing receivable originated during current fiscal year	317,174,000	384,895,000
Financing receivable originated one year prior to current fiscal year	292,885,000	290,897,000
Financing receivable originated two years prior to current fiscal year	239,238,000	85,916,000
Financing receivable originated three years prior to current fiscal year	60,565,000	45,848,000
Financing receivable originated four years prior to current fiscal year	33,028,000	47,025,000
Financing receivable originated five years or more prior to current fiscal year	47,775,000	29,435,000
Revolving Loans	4,530,000	4,844,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	995,195,000	888,860,000
Credit Quality Grades 1-6 | Construction equipment
Loan and Lease Financings
Financing receivable originated during current fiscal year	359,702,000	314,044,000
Financing receivable originated one year prior to current fiscal year	234,401,000	201,032,000
Financing receivable originated two years prior to current fiscal year	120,431,000	109,029,000
Financing receivable originated three years prior to current fiscal year	68,480,000	47,693,000
Financing receivable originated four years prior to current fiscal year	24,452,000	13,501,000
Financing receivable originated five years or more prior to current fiscal year	7,729,000	5,031,000
Revolving Loans	22,426,000	18,937,000
Revolving Loans Converted to Term	2,975,000	4,594,000
Amortized cost of loans and leases	840,596,000	713,861,000
Credit Quality Grades 1-6 | Commercial real estate
Loan and Lease Financings
Financing receivable originated during current fiscal year	208,585,000	230,701,000
Financing receivable originated one year prior to current fiscal year	170,211,000	150,144,000
Financing receivable originated two years prior to current fiscal year	128,762,000	146,374,000
Financing receivable originated three years prior to current fiscal year	115,556,000	141,838,000
Financing receivable originated four years prior to current fiscal year	108,539,000	126,642,000
Financing receivable originated five years or more prior to current fiscal year	189,259,000	112,243,000
Revolving Loans	296,000	391,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	921,208,000	908,333,000
Credit Quality Grades 7-12
Loan and Lease Financings
Relationships reviewed quarterly as part of management's evaluation of the appropriateness of the allowance for loan and lease losses	250,000
Credit Quality Grades 7-12 | Commercial and agricultural
Loan and Lease Financings
Financing receivable originated during current fiscal year	3,094,000	4,682,000
Financing receivable originated one year prior to current fiscal year	2,897,000	194,000
Financing receivable originated two years prior to current fiscal year	124,000	3,667,000
Financing receivable originated three years prior to current fiscal year	2,358,000	2,373,000
Financing receivable originated four years prior to current fiscal year	2,509,000	2,004,000
Financing receivable originated five years or more prior to current fiscal year	1,399,000	484,000
Revolving Loans	15,445,000	14,685,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	27,826,000	28,089,000
Credit Quality Grades 7-12 | Solar
Loan and Lease Financings
Financing receivable originated during current fiscal year	0	0
Financing receivable originated one year prior to current fiscal year	0	1,138,000
Financing receivable originated two years prior to current fiscal year	1,103,000	5,882,000
Financing receivable originated three years prior to current fiscal year	5,732,000	724,000
Financing receivable originated four years prior to current fiscal year	705,000	0
Financing receivable originated five years or more prior to current fiscal year	3,570,000	0
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	11,110,000	7,744,000
Credit Quality Grades 7-12 | Auto and light truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	6,569,000	10,828,000
Financing receivable originated one year prior to current fiscal year	5,228,000	11,752,000
Financing receivable originated two years prior to current fiscal year	7,419,000	7,467,000
Financing receivable originated three years prior to current fiscal year	3,416,000	3,859,000
Financing receivable originated four years prior to current fiscal year	2,511,000	4,876,000
Financing receivable originated five years or more prior to current fiscal year	2,987,000	919,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	28,130,000	39,701,000
Credit Quality Grades 7-12 | Medium and heavy duty truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	0	0
Financing receivable originated one year prior to current fiscal year	0	0
Financing receivable originated two years prior to current fiscal year	0	0
Financing receivable originated three years prior to current fiscal year	0	0
Financing receivable originated four years prior to current fiscal year	0	0
Financing receivable originated five years or more prior to current fiscal year	58,000	273,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	58,000	273,000
Credit Quality Grades 7-12 | Aircraft
Loan and Lease Financings
Financing receivable originated during current fiscal year	592,000	1,141,000
Financing receivable originated one year prior to current fiscal year	0	649,000
Financing receivable originated two years prior to current fiscal year	578,000	0
Financing receivable originated three years prior to current fiscal year	0	4,670,000
Financing receivable originated four years prior to current fiscal year	0	454,000
Financing receivable originated five years or more prior to current fiscal year	1,630,000	2,627,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	2,800,000	9,541,000
Credit Quality Grades 7-12 | Construction equipment
Loan and Lease Financings
Financing receivable originated during current fiscal year	22,162,000	26,650,000
Financing receivable originated one year prior to current fiscal year	9,618,000	8,709,000
Financing receivable originated two years prior to current fiscal year	2,466,000	1,983,000
Financing receivable originated three years prior to current fiscal year	2,081,000	797,000
Financing receivable originated four years prior to current fiscal year	234,000	80,000
Financing receivable originated five years or more prior to current fiscal year	55,000	0
Revolving Loans	0	0
Revolving Loans Converted to Term	1,480,000	2,193,000
Amortized cost of loans and leases	38,096,000	40,412,000
Credit Quality Grades 7-12 | Commercial real estate
Loan and Lease Financings
Financing receivable originated during current fiscal year	280,000	218,000
Financing receivable originated one year prior to current fiscal year	838,000	5,921,000
Financing receivable originated two years prior to current fiscal year	7,614,000	7,159,000
Financing receivable originated three years prior to current fiscal year	6,138,000	491,000
Financing receivable originated four years prior to current fiscal year	48,000	6,208,000
Financing receivable originated five years or more prior to current fiscal year	1,297,000	1,011,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	16,215,000	21,008,000
Performing | Residential real estate and home equity
Loan and Lease Financings
Financing receivable originated during current fiscal year	89,237,000	105,345,000
Financing receivable originated one year prior to current fiscal year	101,190,000	114,682,000
Financing receivable originated two years prior to current fiscal year	101,388,000	41,185,000
Financing receivable originated three years prior to current fiscal year	35,269,000	9,706,000
Financing receivable originated four years prior to current fiscal year	7,274,000	11,720,000
Financing receivable originated five years or more prior to current fiscal year	85,733,000	89,646,000
Revolving Loans	142,535,000	122,281,000
Revolving Loans Converted to Term	3,779,000	4,555,000
Amortized cost of loans and leases	566,405,000	499,120,000
Performing | Consumer
Loan and Lease Financings
Financing receivable originated during current fiscal year	59,856,000	58,866,000
Financing receivable originated one year prior to current fiscal year	39,184,000	24,307,000
Financing receivable originated two years prior to current fiscal year	15,115,000	17,031,000
Financing receivable originated three years prior to current fiscal year	9,045,000	8,284,000
Financing receivable originated four years prior to current fiscal year	3,854,000	2,263,000
Financing receivable originated five years or more prior to current fiscal year	1,032,000	697,000
Revolving Loans	20,323,000	21,378,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	$ 148,409,000	132,826,000
Nonperforming
Loan and Lease Financings
Classification of nonperforming loans, threshold period past due	90 days
Nonperforming | Residential real estate and home equity
Loan and Lease Financings
Financing receivable originated during current fiscal year	$ 0	0
Financing receivable originated one year prior to current fiscal year	186,000	0
Financing receivable originated two years prior to current fiscal year	926,000	0
Financing receivable originated three years prior to current fiscal year	0	13,000
Financing receivable originated four years prior to current fiscal year	0	421,000
Financing receivable originated five years or more prior to current fiscal year	669,000	655,000
Revolving Loans	188,000	293,000
Revolving Loans Converted to Term	228,000	88,000
Amortized cost of loans and leases	2,197,000	1,470,000
Nonperforming | Consumer
Loan and Lease Financings
Financing receivable originated during current fiscal year	0	37,000
Financing receivable originated one year prior to current fiscal year	69,000	107,000
Financing receivable originated two years prior to current fiscal year	30,000	43,000
Financing receivable originated three years prior to current fiscal year	40,000	30,000
Financing receivable originated four years prior to current fiscal year	15,000	33,000
Financing receivable originated five years or more prior to current fiscal year	14,000	4,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	$ 168,000	$ 254,000

Loan and Lease Financings (De_2

Loan and Lease Financings (Details 2) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
90 Days or More Past Due and Accruing	$ 166	$ 249
Total Accruing Loans	5,734,265	5,307,508
Nonaccrual	27,813	38,706
Total loans and leases	5,762,078	5,346,214
Accrued interest receivable on loans and leases	15,190	12,940
Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	5,728,821	5,301,658
30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	3,116	2,987
60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	2,162	2,614
Commercial and agricultural
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	835,319	916,659
Nonaccrual	443	2,053
Total loans and leases	835,762	918,712
Commercial and agricultural | Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	834,918	916,659
Commercial and agricultural | 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	360	0
Commercial and agricultural | 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	41	0
Solar
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	358,635	348,302
Nonaccrual	0	0
Total loans and leases	358,635	348,302
Solar | Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	358,635	348,302
Solar | 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	0	0
Solar | 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	0	0
Auto and light truck
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	725,655	579,605
Nonaccrual	17,669	24,170
Total loans and leases	743,324	603,775
Auto and light truck | Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	725,421	579,605
Auto and light truck | 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	234	0
Auto and light truck | 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	0	0
Medium and heavy duty truck
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	293,010	259,467
Nonaccrual	58	273
Total loans and leases	293,068	259,740
Medium and heavy duty truck | Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	293,010	259,467
Medium and heavy duty truck | 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	0	0
Medium and heavy duty truck | 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	0	0
Aircraft
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	997,417	897,752
Nonaccrual	578	649
Total loans and leases	997,995	898,401
Aircraft | Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	995,787	894,092
Aircraft | 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	0	1,130
Aircraft | 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	1,630	2,530
Construction equipment
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	874,445	747,183
Nonaccrual	4,247	7,090
Total loans and leases	878,692	754,273
Construction equipment | Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	872,660	745,870
Construction equipment | 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	1,568	1,313
Construction equipment | 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	217	0
Commercial real estate
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	934,804	926,345
Nonaccrual	2,619	2,996
Total loans and leases	937,423	929,341
Commercial real estate | Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	934,804	926,345
Commercial real estate | 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	0	0
Commercial real estate | 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	0	0
Residential real estate and home equity
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
90 Days or More Past Due and Accruing	166	245
Total Accruing Loans	566,571	499,365
Nonaccrual	2,031	1,225
Total loans and leases	568,602	500,590
Residential real estate and home equity | Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	565,712	498,854
Residential real estate and home equity | 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	508	212
Residential real estate and home equity | 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	185	54
Consumer
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
90 Days or More Past Due and Accruing	0	4
Total Accruing Loans	148,409	132,830
Nonaccrual	168	250
Total loans and leases	148,577	133,080
Consumer | Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	147,874	132,464
Consumer | 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	446	332
Consumer | 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	$ 89	$ 30

Loan and Lease Financings (De_3

Loan and Lease Financings (Details 3) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) item default	Sep. 30, 2021 item default	Sep. 30, 2022 USD ($) item default	Sep. 30, 2021 item default	Dec. 31, 2021 USD ($)
Loans and leases classified as TDR
Number of Modifications | item	0	1	0	1
Number of Defaults | default	0	0	1	0
Loans and leases classified as troubled debt restructuring	$ 4,042		$ 4,042		$ 7,061
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	0		$ 0		319
Nonperforming
Loans and leases classified as TDR
Loans and leases classified as troubled debt restructuring	$ 4,042		$ 4,042		$ 6,742
Interest Rate Below Market Reduction [Member]
Loans and leases classified as TDR
Number of Modifications | item	0	1	0	1

Allowance for Credit Losses (De

Allowance for Credit Losses (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) item	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) item	Sep. 30, 2021 USD ($)
Allowance for credit losses
Number of classes existing in loan and lease portfolio | item	9		9
Changes in allowance for loan and lease losses
Balance at the beginning of the period	$ 132,865	$ 136,361	$ 127,492	$ 140,654
Charge-offs	720	1,077	1,171	6,323
Recoveries	424	1,030	1,512	2,610
Net charge-offs (recoveries)	296	47	(341)	3,713
Provision (recovery of provision)	3,167	(2,559)	7,903	(3,186)
Balance at the end of the period	135,736	133,755	135,736	133,755
Commercial and agricultural
Changes in allowance for loan and lease losses
Balance at the beginning of the period	16,110	14,832	15,409	16,680
Charge-offs	414	21	453	307
Recoveries	39	176	46	694
Net charge-offs (recoveries)	375	(155)	407	(387)
Provision (recovery of provision)	412	179	1,145	(1,901)
Balance at the end of the period	16,147	15,166	16,147	15,166
Solar
Changes in allowance for loan and lease losses
Balance at the beginning of the period	6,652	5,867	6,585	5,549
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Net charge-offs (recoveries)	0	0	0	0
Provision (recovery of provision)	142	(15)	209	303
Balance at the end of the period	6,794	5,852	6,794	5,852
Auto and light truck
Changes in allowance for loan and lease losses
Balance at the beginning of the period	19,057	27,221	19,624	28,926
Charge-offs	66	407	98	5,060
Recoveries	91	479	212	664
Net charge-offs (recoveries)	(25)	(72)	(114)	4,396
Provision (recovery of provision)	(85)	(1,451)	(741)	1,312
Balance at the end of the period	18,997	25,842	18,997	25,842
Medium and heavy duty truck
Changes in allowance for loan and lease losses
Balance at the beginning of the period	6,709	5,888	6,015	6,400
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Net charge-offs (recoveries)	0	0	0	0
Provision (recovery of provision)	304	(158)	998	(670)
Balance at the end of the period	7,013	5,730	7,013	5,730
Aircraft
Changes in allowance for loan and lease losses
Balance at the beginning of the period	36,987	35,301	33,628	34,053
Charge-offs	0	0	0	0
Recoveries	176	153	653	513
Net charge-offs (recoveries)	(176)	(153)	(653)	(513)
Provision (recovery of provision)	132	975	3,014	1,863
Balance at the end of the period	37,295	36,429	37,295	36,429
Construction equipment
Changes in allowance for loan and lease losses
Balance at the beginning of the period	21,171	17,908	19,673	19,166
Charge-offs	0	551	48	559
Recoveries	11	170	11	424
Net charge-offs (recoveries)	(11)	381	37	135
Provision (recovery of provision)	1,667	(1,083)	3,213	(2,587)
Balance at the end of the period	22,849	16,444	22,849	16,444
Commercial real estate
Changes in allowance for loan and lease losses
Balance at the beginning of the period	18,416	22,578	19,691	22,758
Charge-offs	0	0	0	0
Recoveries	17	0	43	19
Net charge-offs (recoveries)	(17)	0	(43)	(19)
Provision (recovery of provision)	57	(1,253)	(1,244)	(1,452)
Balance at the end of the period	18,490	21,325	18,490	21,325
Residential real estate and home equity
Changes in allowance for loan and lease losses
Balance at the beginning of the period	5,779	5,066	5,084	5,374
Charge-offs	17	0	27	42
Recoveries	1	3	129	14
Net charge-offs (recoveries)	16	(3)	(102)	28
Provision (recovery of provision)	306	96	883	(181)
Balance at the end of the period	6,069	5,165	6,069	5,165
Consumer
Changes in allowance for loan and lease losses
Balance at the beginning of the period	1,984	1,700	1,783	1,748
Charge-offs	223	98	545	355
Recoveries	89	49	418	282
Net charge-offs (recoveries)	134	49	127	73
Provision (recovery of provision)	232	151	426	127
Balance at the end of the period	$ 2,082	$ 1,802	$ 2,082	$ 1,802

Allowance for Credit Losses (_2

Allowance for Credit Losses (Details 2) - Unfunded Loan Commitment - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Allowance for credit losses
Balance, beginning of period	$ 5,497	$ 4,317	$ 4,196	$ 4,499
(Recovery of provision) provision	(281)	46	1,020	(136)
Balance, end of period	$ 5,216	$ 4,363	$ 5,216	$ 4,363

Lease Investments (Details)

Lease Investments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Interest income on lease receivable	$ 2,402	$ 1,629	$ 6,112	$ 4,880
Income related to lease payments	2,761	3,946	9,718	12,830
Depreciation - leased equipment	2,233	3,239	7,912	10,562
Income from reimbursements for personal property tax payments on operating leased equipment	80	20	310	400
Expense for payments of personal property taxes on operating leased equipment	$ 80	$ 20	$ 310	$ 400

Mortgage Servicing Rights (Deta

Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Residential mortgage loans
Mortgage Servicing Rights
Unpaid principal balance	$ 866,250	$ 883,900

Mortgage Servicing Rights (De_2

Mortgage Servicing Rights (Details 2) - Residential mortgage loans - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Changes in mortgage servicing assets
Balance at the beginning of the period	$ 4,443	$ 4,678	$ 4,671	$ 4,616
Additions	152	395	660	1,566
Amortization	(297)	(554)	(1,033)	(1,663)
Carrying value before valuation allowance at end of period	4,298	4,519	4,298	4,519
Changes in valuation allowance
Balance at the beginning of the period	0	(223)	0	(812)
Impairment recoveries	0	223	0	812
Balance at the end of the period	0	0	0	0
Net carrying value of mortgage servicing rights at end of period	4,298	4,519	4,298	4,519
Fair value of mortgage servicing rights at end of period	7,493	4,999	7,493	4,999
Fair value of mortgage servicing rights exceeding the carrying value	3,200	480	3,200	480
Mortgage loan contractual servicing fees, including late fees and ancillary income	$ 690	$ 810	$ 2,130	$ 2,400

Commitments and Financial Ins_3

Commitments and Financial Instruments with Off-Balance-Sheet Risk (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Loan commitments to extend credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet instruments	$ 1,199,066	$ 1,148,984
Standby letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet instruments	$ 18,761	24,657
Standby letters of credit | Minimum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Letter of credit term	2 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	$ 400	$ 8,531
Commercial and similar letters of credit | Minimum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Letter of credit term	2 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	Sep. 30, 2022	Dec. 31, 2021
Non-hedging derivative financial instruments
Derivative Financial Instruments
Notional or contractual amount	$ 951,274	$ 1,101,807
Asset derivatives, Fair value	27,028	21,187
Liability derivatives, Fair value	27,424	21,183
Interest rate swap contracts
Derivative Financial Instruments
Asset derivatives, Fair value	26,918	24,436
Interest rate swap contracts | Non-hedging derivative financial instruments
Derivative Financial Instruments
Notional or contractual amount	947,564	1,064,721
Asset derivatives, Fair value	26,918	20,735
Liability derivatives, Fair value	27,424	21,172
Loan commitments | Non-hedging derivative financial instruments
Derivative Financial Instruments
Notional or contractual amount	1,460	15,086
Asset derivatives, Fair value	28	452
Liability derivatives, Fair value	0	0
Forward contracts - mortgage loan | Non-hedging derivative financial instruments
Derivative Financial Instruments
Notional or contractual amount	2,250	22,000
Asset derivatives, Fair value	82	0
Liability derivatives, Fair value	$ 0	$ 11

Derivative Financial Instrume_4

Derivative Financial Instruments (Details 2) - Non-hedging derivative financial instruments - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Derivative Financial Instruments
Gain (loss)	$ (283)	$ 341	$ (317)	$ 535
Interest rate swap contracts | Other expense
Derivative Financial Instruments
Gain (loss)	(252)	101	(69)	420
Interest rate swap contracts | Other income
Derivative Financial Instruments
Gain (loss)	83	69	83	307
Loan commitments
Derivative Financial Instruments
Gain (loss)	(197)	(75)	(424)	(704)
Forward contracts - mortgage loan
Derivative Financial Instruments
Gain (loss)	$ 83	$ 246	$ 93	$ 512

Derivative Financial Instrume_5

Derivative Financial Instruments (Details 3) - Interest rate swaps - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Offsetting Assets
Asset derivatives, Fair value	$ 26,918	$ 24,436
Gross Amounts Offset in the Statement of Financial Position	0	3,701
Net Amounts of Assets Presented in the Statement of Financial Position	26,918	20,735
Derivative Asset, Fair Value, Amount Offset Against Collateral [Abstract]
Financial instruments	0	0
Cash collateral received	25,735	0
Net Amount	$ 1,183	$ 20,735

Derivative Financial Instrume_6

Derivative Financial Instruments (Details 4) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Offsetting of financial liabilities and derivative liabilities
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	$ 157,616	$ 219,600
Gross Amounts Offset in the Statement of Financial Position	0	3,701
Net Amounts of Liabilities Presented in the Statement of Financial Position	157,616	215,899
Gross amounts Not Offset in the Statement of Financial Position
Financial Instruments	130,192	215,225
Cash Collateral Pledged	0	0
Net Amount	27,424	674
Interest rate swaps
Offsetting of financial liabilities and derivative liabilities
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	27,424	24,873
Gross Amounts Offset in the Statement of Financial Position	0	3,701
Net Amounts of Liabilities Presented in the Statement of Financial Position	27,424	21,172
Derivative, Collateral, Right to Reclaim Securities	0	20,498
Gross amounts Not Offset in the Statement of Financial Position
Cash Collateral Pledged	0	0
Net Amount	27,424	674
Repurchase agreements
Offsetting of financial liabilities and derivative liabilities
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	130,192	194,727
Net Amounts of Liabilities Presented in the Statement of Financial Position	130,192	194,727
Gross amounts Not Offset in the Statement of Financial Position
Financial Instruments	$ 130,192	$ 194,727

Derivative Financial Instrume_7

Derivative Financial Instruments (Details 5) - U.S. Treasury and Federal agencies securities - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Overnight and Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Repurchase agreements	$ 126,920	$ 191,470
Up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Repurchase agreements	$ 3,270	$ 3,260

Variable Interest Entities (Det

Variable Interest Entities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Subordinated Borrowing [Line Items]
Federal tax credits recognized in tax expense	$ 520	$ 550	$ 1,550	$ 1,560
Investment tax credits	0	$ 320	9,480	$ 3,320
Investment carrying amount	8,097,486		8,097,486		$ 8,096,289
Unfunded capital and other commitments	7,211,126		7,211,126		7,126,825
Maximum exposure to loss, unconsolidated VIEs	50,048		50,048		50,319
Variable interest entity, primary beneficiary
Subordinated Borrowing [Line Items]
Investment carrying amount	66,910		66,910		59,080
Unfunded capital and other commitments	0		0		0
Variable interest entity, not primary beneficiary
Subordinated Borrowing [Line Items]
Investment carrying amount	55,546		55,546		35,968
Unfunded capital and other commitments	$ 51,428		$ 51,428		$ 29,670

Variable Interest Entities (D_2

Variable Interest Entities (Details 2) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) trust	Dec. 31, 2021 USD ($)
Variable Interest Entities [Abstract]
Number of trusts sponsored | trust	1
Percentage of ownership interest	100%
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)	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)	4.77%
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%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Outstanding stock options (in shares)	0	0	0	0
Distributed earnings allocated to common stock	$ 7,890	$ 7,749	$ 23,230	$ 22,681
Undistributed earnings allocated to common stock	24,571	24,472	65,489	67,422
Net earnings allocated to common stock	32,461	32,221	88,719	90,103
Net earnings allocated to participating securities	276	262	722	708
Net income available to common shareholders	$ 32,737	$ 32,483	$ 89,441	$ 90,811
Weighted average shares outstanding for basic earnings per common share	24,656,736	24,919,956	24,697,106	25,126,703
Dilutive effect of stock compensation (in shares)	0	0	0	0
Weighted average shares outstanding for diluted earnings per common share	24,656,736	24,919,956	24,697,106	25,126,703
Basic earnings per common share (in dollars per share)	$ 1.32	$ 1.29	$ 3.59	$ 3.59
Diluted earnings per common share (in dollars per share)	$ 1.32	$ 1.29	$ 3.59	$ 3.59

Stock Based Compensation (Detai

Stock Based Compensation (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) item shares	Sep. 30, 2021 USD ($) 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 | $	$ 8,700
Weighted-average period over which unrecognized compensation cost is expected to be recognized	3 years 2 months 26 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		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Reclassifications out of accumulated other comprehensive income
Losses on investment securities available-for-sale	$ 0	$ 0	$ 0	$ (680)
Income tax expense	(9,698)	(9,735)	(26,295)	(27,797)
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	0	0	(680)
Income before income taxes	0	0	0	(680)
Income tax expense	0	0	0	164
Net income	$ 0	$ 0	$ 0	$ (516)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Unrecognized tax benefits that would affect the effective tax rate if recognized	$ 0		$ 0		$ 0
Interest and penalties net of tax recognized	0	$ 0	0	$ 0
Accrued interest and penalties	$ 0		$ 0		$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands		Sep. 30, 2022	Dec. 31, 2021
Fair value measurements
Fair value carrying amount		$ 3,058	$ 13,284
Mortgages held for sale reported at fair value
Fair value measurements
Fair value carrying amount		3,058	13,284
Aggregate unpaid principal		2,942	12,456
Excess of fair value carrying amount over (under) unpaid principal	[1]	$ 116	$ 828
[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	Sep. 30, 2022	Dec. 31, 2021
Fair value measurements
Investment securities available-for-sale	$ 1,801,194	$ 1,863,041
Assets:
Mortgages held for sale	3,058	13,284
U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	1,031,577	1,084,006
U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	115,231	95,701
Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	637,690	659,727
Corporate debt securities
Fair value measurements
Investment securities available-for-sale	16,113	23,009
Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	583	598
Total
Fair value measurements
Investment securities available-for-sale	1,801,194	1,863,041
Assets:
Mortgages held for sale	3,058	13,284
Level 1
Fair value measurements
Investment securities available-for-sale	570,045	561,950
Assets:
Mortgages held for sale	0	0
Level 2
Fair value measurements
Investment securities available-for-sale	1,226,751	1,299,242
Assets:
Mortgages held for sale	3,058	13,284
Level 3
Fair value measurements
Investment securities available-for-sale	4,398	1,849
Assets:
Mortgages held for sale	0	0
Recurring basis | Total
Fair value measurements
Investment securities available-for-sale	1,801,194	1,863,041
Assets:
Mortgages held for sale	3,058	13,284
Total	1,831,170	1,897,060
Liabilities:
Total	27,424	21,172
Recurring basis | Total | Interest rate swap contracts
Assets:
Accrued income and other assets	26,918	20,735
Liabilities:
Accrued expenses and other liabilities	27,424	21,172
Recurring basis | Total | U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	1,031,577	1,084,006
Recurring basis | Total | U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	115,231	95,701
Recurring basis | Total | Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	637,690	659,727
Recurring basis | Total | Corporate debt securities
Fair value measurements
Investment securities available-for-sale	16,113	23,009
Recurring basis | Total | Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	583	598
Recurring basis | Level 1
Fair value measurements
Investment securities available-for-sale	570,045	561,950
Assets:
Mortgages held for sale	0	0
Total	570,045	561,950
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	570,045	561,950
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	1,226,751	1,299,242
Assets:
Mortgages held for sale	3,058	13,284
Total	1,256,727	1,333,261
Liabilities:
Total	27,424	21,172
Recurring basis | Level 2 | Interest rate swap contracts
Assets:
Accrued income and other assets	26,918	20,735
Liabilities:
Accrued expenses and other liabilities	27,424	21,172
Recurring basis | Level 2 | U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	461,532	522,056
Recurring basis | Level 2 | U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	110,833	93,852
Recurring basis | Level 2 | Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	637,690	659,727
Recurring basis | Level 2 | Corporate debt securities
Fair value measurements
Investment securities available-for-sale	16,113	23,009
Recurring basis | Level 2 | Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	583	598
Recurring basis | Level 3
Fair value measurements
Investment securities available-for-sale	4,398	1,849
Assets:
Mortgages held for sale	0	0
Total	4,398	1,849
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	4,398	1,849
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) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2021
Changes in the fair value of Level 3 assets measured on a recurring basis
Total gains or losses (unrealized): included in earnings	$ 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	4,515	$ 1,921
Total gains or losses (realized/unrealized): included in earnings	0	0
Total gains or losses (realized/unrealized): included in other comprehensive income (loss)	(32)	(7)
Purchases	0	0
Issuances	0	0
Sales	0	0
Settlements	0	0
Maturities	(85)	(85)
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance at the end of the period	$ 4,398	$ 1,829	$ 1,829

Fair Value Measurements (Deta_4

Fair Value Measurements (Details 4) $ in Thousands	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Valuation Methodology
Investment securities, available-for-sale	$ 1,801,194	$ 1,863,041
Level 3
Valuation Methodology
Investment securities, available-for-sale	4,398	1,849
Recurring | Level 3
Valuation Methodology
Investment securities, available-for-sale	4,398	1,849
Recurring | Level 3 | Discounted cash flows | Direct placement municipal securities
Valuation Methodology
Investment securities, available-for-sale	$ 4,398	$ 1,849
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)	0.0417	0.0004
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)	0.0497	0.0231
Credit spread assumption | Recurring | Level 3 | Discounted cash flows | Direct placement municipal securities | Weighted Average
Unobservable Inputs
Debt securities available-for-sale unobservable inputs (as a percent)	0.0479	0.0158
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
	Sep. 30, 2022	Dec. 31, 2021
Impaired loans
Fair value measurements
Impairment charges	$ 0
Mortgage servicing rights
Fair value measurements
Impairment recoveries	0
Repossessions
Fair value measurements
Impairment charges	0
Other real estate
Fair value measurements
Impairment charges	0
Total
Fair value measurements
Impaired loans - collateral based	851	$ 571
Assets measured at fair value	5,175	6,103
Total | Mortgage servicing rights
Fair value measurements
Accrued income and other assets	4,298	4,671
Total | Repossessions
Fair value measurements
Accrued income and other assets	26	861
Level 3
Fair value measurements
Impaired loans - collateral based	851	571
Assets measured at fair value	5,175	6,103
Level 3 | Mortgage servicing rights
Fair value measurements
Accrued income and other assets	4,298	4,671
Level 3 | Repossessions
Fair value measurements
Accrued income and other assets	$ 26	$ 861

Fair Value Measurements (Deta_6

Fair Value Measurements (Details 6) - Non-recurring $ in Thousands	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Level 3
Valuation Methodology
Assets measured at fair value	$ 5,175	$ 6,103
Carrying Value | Level 3 | Collateral based measurements | Impaired loans
Valuation Methodology
Assets measured at fair value	851	571
Carrying Value | Level 3 | Discounted cash flows | Mortgage servicing rights
Valuation Methodology
Assets measured at fair value	4,298	4,671
Carrying Value | Level 3 | Appraisals trade publications and auction values | Repossessions
Valuation Methodology
Assets measured at fair value	26	861
Fair Value
Valuation Methodology
Assets measured at fair value	5,175	6,103
Fair Value | Level 3 | Collateral based measurements | Impaired loans
Valuation Methodology
Assets measured at fair value	851	571
Fair Value | Level 3 | Discounted cash flows | Mortgage servicing rights
Valuation Methodology
Assets measured at fair value	7,493	5,640
Fair Value | Level 3 | Appraisals trade publications and auction values | Repossessions
Valuation Methodology
Assets measured at fair value	$ 30	$ 942
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)	0.20	0.20
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)	0.90	0.90
Discount for lack of marketability and current conditions | Level 3 | Collateral based measurements | Impaired loans | Weighted Average
Unobservable Inputs
Impaired loans unobservable inputs (as a percent)	0.362	0.431
Constant prepayment rate (CPR) | Level 3 | Discounted cash flows | Mortgage servicing rights | Minimum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.074	0.118
Constant prepayment rate (CPR) | Level 3 | Discounted cash flows | Mortgage servicing rights | Maximum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.104	0.185
Constant prepayment rate (CPR) | Level 3 | Discounted cash flows | Mortgage servicing rights | Weighted Average
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.096	0.164
Discount rate | Level 3 | Discounted cash flows | Mortgage servicing rights | Minimum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.119	0.086
Discount rate | Level 3 | Discounted cash flows | Mortgage servicing rights | Maximum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.147	0.115
Discount rate | Level 3 | Discounted cash flows | Mortgage servicing rights | Weighted Average
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.120	0.088
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
Discount for lack of marketability | Level 3 | Appraisals trade publications and auction values | Repossessions | Maximum
Unobservable Inputs
Repossessions unobservable inputs (as a percent)	0.13	0.21
Discount for lack of marketability | Level 3 | Appraisals trade publications and auction values | Repossessions | Weighted Average
Unobservable Inputs
Repossessions unobservable inputs (as a percent)	0.13	0.02

Fair Value Measurements (Deta_7

Fair Value Measurements (Details 7) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Assets:
Cash and due from banks	$ 86,952	$ 54,420
Federal funds sold and interest bearing deposits with other banks	30,652	470,767
Investment securities available-for-sale	1,801,194	1,863,041
Other investments	25,538	27,189
Mortgages held for sale	3,058	13,284
Loans and leases, net of allowance for loan and lease losses	5,626,342	5,218,722
Liabilities:
Long-term debt and mandatorily redeemable securities	47,587	71,251
Subordinated notes	58,764	58,764
Carrying or Contract Value
Assets:
Cash and due from banks	86,952	54,420
Federal funds sold and interest bearing deposits with other banks	30,652	470,767
Investment securities available-for-sale	1,801,194	1,863,041
Other investments	25,538	27,189
Mortgages held for sale	3,058	13,284
Loans and leases, net of allowance for loan and lease losses	5,626,342	5,218,722
Mortgage servicing rights	4,298	4,671
Accrued interest receivable	20,625	17,760
Interest rate swaps	26,918	20,735
Liabilities:
Deposits	6,621,231	6,679,065
Short-term borrowings	340,462	200,027
Long-term debt and mandatorily redeemable securities	47,587	71,251
Subordinated notes	58,764	58,764
Accrued interest payable	3,133	1,885
Interest rate swaps	27,424	21,172
Off-balance-sheet instruments	0	0
Fair Value
Assets:
Cash and due from banks	86,952	54,420
Federal funds sold and interest bearing deposits with other banks	30,652	470,767
Investment securities available-for-sale	1,801,194	1,863,041
Other investments	25,538	27,189
Mortgages held for sale	3,058	13,284
Loans and leases, net of allowance for loan and lease losses	5,533,010	5,269,551
Mortgage servicing rights	7,493	5,640
Accrued interest receivable	20,625	17,760
Interest rate swaps	26,918	20,735
Liabilities:
Deposits	6,602,827	6,680,163
Short-term borrowings	340,462	200,027
Long-term debt and mandatorily redeemable securities	46,052	71,305
Subordinated notes	48,394	58,553
Accrued interest payable	3,133	1,885
Interest rate swaps	27,424	21,172
Off-balance-sheet instruments	120	364
Level 1
Assets:
Cash and due from banks	86,952	54,420
Federal funds sold and interest bearing deposits with other banks	30,652	470,767
Investment securities available-for-sale	570,045	561,950
Other investments	25,538	27,189
Mortgages held for sale	0	0
Loans and leases, net of allowance for loan and lease losses	0	0
Mortgage servicing rights	0	0
Accrued interest receivable	0	0
Interest rate swaps	0	0
Liabilities:
Deposits	5,842,321	5,794,928
Short-term borrowings	143,181	192,801
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	1,226,751	1,299,242
Other investments	0	0
Mortgages held for sale	3,058	13,284
Loans and leases, net of allowance for loan and lease losses	0	0
Mortgage servicing rights	0	0
Accrued interest receivable	20,625	17,760
Interest rate swaps	26,918	20,735
Liabilities:
Deposits	760,506	885,235
Short-term borrowings	197,281	7,226
Long-term debt and mandatorily redeemable securities	46,052	71,305
Subordinated notes	48,394	58,553
Accrued interest payable	3,133	1,885
Interest rate swaps	27,424	21,172
Off-balance-sheet instruments	120	364
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	4,398	1,849
Other investments	0	0
Mortgages held for sale	0	0
Loans and leases, net of allowance for loan and lease losses	5,533,010	5,269,551
Mortgage servicing rights	7,493	5,640
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