1st Source (SRCE) 10-Q19 Oct 232023 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2023	Oct. 13, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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		24,429,083
Entity Registrant Name	1st Source Corp
Entity Central Index Key	0000034782
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED STATEMENTS OF FINA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
ASSETS
Cash and due from banks	$ 75,729	$ 84,703
Federal funds sold and interest bearing deposits with other banks	35,406	38,094
Investment securities available-for-sale	1,605,242	1,775,128
Other investments	25,075	25,293
Mortgages held for sale	3,118	3,914
Loans and leases - net of unearned discount
Loans and leases	6,353,648	6,011,162
Allowance for loan and lease losses	(144,074)	(139,268)
Net loans and leases	6,209,574	5,871,894
Equipment owned under operating leases, net	24,096	31,700
Net premises and equipment	43,951	44,773
Goodwill and intangible assets	83,921	83,907
Accrued income and other assets	418,946	380,010
Total assets	8,525,058	8,339,416
Deposits:
Noninterest-bearing demand	1,680,725	1,998,151
Interest-bearing deposits:
Interest-bearing demand	2,416,864	2,591,464
Savings	1,180,837	1,198,191
Time	1,689,066	1,140,459
Total interest-bearing deposits	5,286,767	4,930,114
Total deposits	6,967,492	6,928,265
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase	48,335	141,432
Other short-term borrowings	223,757	74,097
Total short-term borrowings	272,092	215,529
Long-term debt and mandatorily redeemable securities	46,533	46,555
Subordinated notes	58,764	58,764
Accrued expenses and other liabilities	197,180	166,537
Total liabilities	7,542,061	7,415,650
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, 2023 and December 31, 2022	436,538	436,538
Retained earnings	769,603	694,862
Cost of common stock in treasury (3,776,591 shares at September 30, 2023 and 3,543,388 shares at December 31, 2022)	(130,579)	(119,642)
Accumulated other comprehensive loss	(151,312)	(147,690)
Total shareholders’ equity	924,250	864,068
Noncontrolling interests	58,747	59,698
Total equity	982,997	923,766
Total liabilities and equity	$ 8,525,058	$ 8,339,416
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	3,776,591	3,543,388
Commercial and agricultural
Loans and leases - net of unearned discount
Loans and leases	$ 763,051	$ 812,031
Allowance for loan and lease losses	(14,969)	(14,635)
Solar
Loans and leases - net of unearned discount
Loans and leases	364,949	381,163
Allowance for loan and lease losses	(6,105)	(7,217)
Auto and light truck
Loans and leases - net of unearned discount
Loans and leases	901,484	808,117
Allowance for loan and lease losses	(16,338)	(18,634)
Medium and heavy duty truck
Loans and leases - net of unearned discount
Loans and leases	323,202	313,862
Allowance for loan and lease losses	(7,711)	(7,566)
Aircraft
Loans and leases - net of unearned discount
Loans and leases	1,079,581	1,077,722
Allowance for loan and lease losses	(40,460)	(41,093)
Construction equipment
Loans and leases - net of unearned discount
Loans and leases	1,062,097	938,503
Allowance for loan and lease losses	(26,895)	(24,039)
Commercial real estate
Loans and leases - net of unearned discount
Loans and leases	1,088,199	943,745
Allowance for loan and lease losses	(22,644)	(17,431)
Residential real estate and home equity
Loans and leases - net of unearned discount
Loans and leases	627,515	584,737
Allowance for loan and lease losses	(6,891)	(6,478)
Consumer
Loans and leases - net of unearned discount
Loans and leases	143,570	151,282
Allowance for loan and lease losses	$ (2,061)	$ (2,175)

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Interest income:
Loans and leases	$ 100,206	$ 69,027	$ 280,195	$ 184,650
Investment securities, taxable	5,918	6,691	18,512	19,324
Investment securities, tax-exempt	319	339	1,131	630
Other	883	421	2,498	1,952
Total interest income	107,326	76,478	302,336	206,556
Interest expense:
Deposits	34,405	6,556	84,538	12,485
Short-term borrowings	2,136	380	5,154	427
Subordinated notes	1,060	904	3,108	2,578
Long-term debt and mandatorily redeemable securities	489	(296)	2,219	(948)
Total interest expense	38,090	7,544	95,019	14,542
Net interest income	69,236	68,934	207,317	192,014
Provision for credit losses	859	3,167	3,955	7,903
Net interest income after provision for credit losses	68,377	65,767	203,362	184,111
Noninterest income:
Mortgage banking	971	864	2,699	3,303
Insurance commissions	1,714	1,695	5,384	5,168
Equipment rental	2,101	2,761	6,930	9,718
Losses on investment securities available-for-sale	0	0	(44)	0
Other	6,347	3,321	14,781	9,937
Total noninterest income	24,455	22,007	70,547	67,982
Noninterest expense:
Salaries and employee benefits	28,866	26,386	85,699	77,415
Net occupancy	2,867	2,582	8,165	7,917
Furniture and equipment	1,217	1,372	3,938	4,051
Information Technology and Data Processing	6,289	5,802	18,714	16,412
Depreciation - leased equipment	1,672	2,233	5,570	7,912
Professional fees	1,763	1,539	4,149	5,241
FDIC and other insurance	1,598	939	4,302	2,682
Business development and marketing	1,201	1,415	4,822	4,352
Other	4,693	3,063	13,393	10,340
Total noninterest expense	50,166	45,331	148,752	136,322
Income before income taxes	42,666	42,443	125,157	115,771
Income tax expense	9,727	9,698	28,640	26,295
Net income	32,939	32,745	96,517	89,476
Net (income) loss attributable to noncontrolling interests	0	(8)	(19)	(35)
Net income available to common shareholders	$ 32,939	$ 32,737	$ 96,498	$ 89,441
Per common share:
Basic net income per common share (in dollars per share)	$ 1.32	$ 1.32	$ 3.87	$ 3.59
Diluted net income per common share (in dollars per share)	1.32	1.32	3.87	3.59
Cash dividends (in dollars per share)	$ 0.32	$ 0.32	$ 0.96	$ 0.94
Basic weighted average common shares outstanding (in shares)	24,660,508	24,656,736	24,677,914	24,697,106
Diluted weighted average common shares outstanding (in shares)	24,660,508	24,656,736	24,677,914	24,697,106
Trust and wealth advisory
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	$ 5,648	$ 5,498	$ 17,794	$ 17,499
Service charges on deposit accounts
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	3,297	3,240	9,418	8,974
Debit card
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	$ 4,377	$ 4,628	$ 13,585	$ 13,383

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 32,939	$ 32,745	$ 96,517	$ 89,476
Other comprehensive income (loss):
Unrealized (depreciation) appreciation of available-for-sale securities	(15,287)	(72,275)	(4,624)	(200,061)
Reclassification adjustment for realized losses included in net income	0	0	44	0
Income tax effect	3,525	17,009	958	47,645
Other comprehensive (loss) income, net of tax	(11,762)	(55,266)	(3,622)	(152,416)
Comprehensive income (loss)	21,177	(22,521)	92,895	(62,940)
Comprehensive (income) loss attributable to noncontrolling interests	0	(8)	(19)	(35)
Comprehensive income (loss) available to common shareholders	$ 21,177	$ (22,529)	$ 92,876	$ (62,975)

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Retained Earnings	Treasury Stock, Common	Accumulated Other Comprehensive Income (Loss), Net	Total Shareholders' Equity	Noncontrolling Interests
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 income (loss)	(152,416)				(152,416)	(152,416)
Issuance of 7,409 and 6,771 common shares under stock based compensation awards for the three months ended September 30, 2023 and 2022, respectively and 77,319 and 67,485 common shares under stock based compensation awards for the nine months ended September 30, 2023 and 2022, respectively	2,918		1,616	1,302		2,918
Cost of 260,887 and 0 shares of common stock acquired for treasury for the three months ended September 30, 2023 and 2022, respectively and 310,522 and 149,819 shares of common stock acquired for treasury for the nine months ended September 30, 2023 and 2022, respectively	(6,836)			(6,836)		(6,836)
Common stock dividend ($0.32 and $0.32 per share for the three months ended September 30, 2023 and 2022, respectively and $0.96 and $0.94 per share for the nine months ended September 30, 2023 and 2022, 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 income (loss)	(55,266)				(55,266)	(55,266)
Issuance of 7,409 and 6,771 common shares under stock based compensation awards for the three months ended September 30, 2023 and 2022, respectively and 77,319 and 67,485 common shares under stock based compensation awards for the nine months ended September 30, 2023 and 2022, respectively	251		118	133		251
Cost of 260,887 and 0 shares of common stock acquired for treasury for the three months ended September 30, 2023 and 2022, respectively and 310,522 and 149,819 shares of common stock acquired for treasury for the nine months ended September 30, 2023 and 2022, respectively	0			0		0
Common stock dividend ($0.32 and $0.32 per share for the three months ended September 30, 2023 and 2022, respectively and $0.96 and $0.94 per share for the nine months ended September 30, 2023 and 2022, 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
Common stock acquired for treasury (in shares)	0
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
Balance at Dec. 31, 2022	923,766	436,538	694,862	(119,642)	(147,690)	864,068	59,698
Increase (Decrease) in Shareholders' Equity
Net income	96,517		96,498			96,498	19
Other comprehensive income (loss)	(3,622)				(3,622)	(3,622)
Issuance of 7,409 and 6,771 common shares under stock based compensation awards for the three months ended September 30, 2023 and 2022, respectively and 77,319 and 67,485 common shares under stock based compensation awards for the nine months ended September 30, 2023 and 2022, respectively	3,563		2,030	1,533		3,563
Cost of 260,887 and 0 shares of common stock acquired for treasury for the three months ended September 30, 2023 and 2022, respectively and 310,522 and 149,819 shares of common stock acquired for treasury for the nine months ended September 30, 2023 and 2022, respectively	(12,470)			(12,470)		(12,470)
Common stock dividend ($0.32 and $0.32 per share for the three months ended September 30, 2023 and 2022, respectively and $0.96 and $0.94 per share for the nine months ended September 30, 2023 and 2022, respectively)	(23,787)		(23,787)			(23,787)
Distributions to noncontrolling interests	$ (970)					0	(970)
Issuance of common shares under stock based compensation awards (in shares)	77,319
Common stock acquired for treasury (in shares)	310,522
Cash dividends (in dollars per share)	$ 0.96
Balance at Sep. 30, 2023	$ 982,997	436,538	769,603	(130,579)	(151,312)	924,250	58,747
Balance at Jun. 30, 2023	980,087	436,538	744,442	(120,410)	(139,550)	921,020	59,067
Increase (Decrease) in Shareholders' Equity
Net income	32,939		32,939			32,939	0
Other comprehensive income (loss)	(11,762)				(11,762)	(11,762)
Issuance of 7,409 and 6,771 common shares under stock based compensation awards for the three months ended September 30, 2023 and 2022, respectively and 77,319 and 67,485 common shares under stock based compensation awards for the nine months ended September 30, 2023 and 2022, respectively	280		156	124		280
Cost of 260,887 and 0 shares of common stock acquired for treasury for the three months ended September 30, 2023 and 2022, respectively and 310,522 and 149,819 shares of common stock acquired for treasury for the nine months ended September 30, 2023 and 2022, respectively	(10,293)			(10,293)		(10,293)
Common stock dividend ($0.32 and $0.32 per share for the three months ended September 30, 2023 and 2022, respectively and $0.96 and $0.94 per share for the nine months ended September 30, 2023 and 2022, respectively)	(7,934)		(7,934)			(7,934)
Distributions to noncontrolling interests	$ (320)					0	(320)
Issuance of common shares under stock based compensation awards (in shares)	7,409
Common stock acquired for treasury (in shares)	260,887
Cash dividends (in dollars per share)	$ 0.32
Balance at Sep. 30, 2023	$ 982,997	$ 436,538	$ 769,603	$ (130,579)	$ (151,312)	$ 924,250	$ 58,747

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Statement of Cash Flows [Abstract]
Net income	$ 96,517	$ 89,476
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	3,955	7,903
Depreciation of premises and equipment	3,421	3,452
Depreciation of equipment owned and leased to others	5,570	7,912
Stock-based compensation	3,408	2,510
Amortization of investment securities premiums and accretion of discounts, net	3,116	3,098
Amortization of mortgage servicing rights	652	1,033
Amortization of right of use assets	2,319	2,369
Deferred income taxes	(5,613)	(5,428)
Losses on investment securities available-for-sale	44	0
Originations of loans held for sale, net of principal collected	(33,843)	(73,718)
Proceeds from the sales of loans held for sale	35,673	85,206
Net gain on sale of loans held for sale	(1,034)	(1,262)
Net gain on sale of other real estate and repossessions	(111)	(267)
Change in interest receivable	(3,373)	(2,866)
Change in interest payable	23,031	1,249
Change in other assets	1,233	10,049
Change in other liabilities	11,740	3,650
Other	(2,919)	(2,623)
Net Cash Provided by (Used in) Operating Activities	143,786	131,743
Investing activities:
Proceeds from sales of investment securities available-for-sale	64,928	0
Proceeds from maturities and paydowns of investment securities available-for-sale	100,218	162,766
Purchases of investment securities available-for-sale	(3,000)	(304,078)
Net change in partnership investments	(29,908)	(16,917)
Net change in other investments	218	1,651
Loans sold or participated to others	37,750	35,252
Proceeds from principal payments on direct finance leases	46,841	48,610
Net change in loans and leases	(427,933)	(500,707)
Net change in equipment owned under operating leases	2,034	7,557
Purchases of premises and equipment	(2,608)	(1,269)
Proceeds from disposal of premises and equipment	9	18
Purchases of bank owned life insurance policies	0	(10,000)
Proceeds from sales of other real estate and repossessions	1,443	2,421
Net Cash Provided by (Used in) Investing Activities	(210,008)	(574,696)
Financing activities:
Net change in demand deposits and savings accounts	(509,380)	47,392
Net change in time deposits	548,607	(105,226)
Net change in short-term borrowings	56,563	140,435
Payments on long-term debt	(3,383)	(23,740)
Stock issued under stock purchase plans	77	252
Acquisition of treasury stock	(12,470)	(6,836)
Net (distributions to) contributions from noncontrolling interests	(970)	7,057
Cash dividends paid on common stock	(24,484)	(23,964)
Net change in financing activities	54,560	35,370
Net change in cash and cash equivalents	(11,662)	(407,583)
Cash and cash equivalents, beginning of year	122,797	525,187
Cash and cash equivalents, end of period	111,135	117,604
Non-cash transactions:
Loans transferred to other real estate and repossessed assets	1,251	1,322
Common stock matching contribution to Employee Stock Ownership and Profit Sharing Plan	1,753	683
Right of use assets obtained in exchange for lease obligations	$ 3,774	$ 846

Accounting Policies

Accounting Policies	9 Months Ended
Accounting Policies	Sep. 30, 2023
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 (2022 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, 2022 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. Only those costs incurred as a direct result of closing a lease transaction are capitalized and all other initial direct costs are expensed immediately. 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. 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. Occasionally, the Company modifies loans and leases to borrowers in financial distress (typically denoted by internal credit quality graded “substandard” or worse) by providing term extensions, other-than-insignificant payment delays, or interest rate reductions. In some cases, a combination of modifications are made to the same loan or lease. These modifications typically result from the Company’s loss mitigation activities. If the Company determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance for loan and lease losses estimate or a charge-off to the allowance for loan and lease losses.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
Recent Accounting Pronouncements	Sep. 30, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Investments-Equity Method and Joint Ventures: In March 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards (ASU) No. 2023-02 “Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. 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 in any interim period. The Company is assessing ASU 2023-02 and its impact on its accounting and disclosures. Fair Value Measurements: In June 2022, the FASB issued 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. 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.”

Investment Securities

Investment Securities	9 Months Ended
Investment Securities	Sep. 30, 2023
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, 2023 U.S. Treasury and Federal agencies securities $ 1,028,272 $ — $ (81,310) $ 946,962 U.S. States and political subdivisions securities 106,089 — (9,105) 96,984 Mortgage-backed securities — Federal agencies 660,447 — (107,984) 552,463 Corporate debt securities 8,457 — (206) 8,251 Foreign government and other securities 600 — (18) 582 Total debt securities available-for-sale $ 1,803,865 $ — $ (198,623) $ 1,605,242 December 31, 2022 U.S. Treasury and Federal agencies securities $ 1,090,743 $ — $ (92,145) $ 998,598 U.S. States and political subdivisions securities 130,670 591 (8,499) 122,762 Mortgage-backed securities — Federal agencies 730,672 60 (93,674) 637,058 Corporate debt securities 16,486 — (355) 16,131 Foreign government and other securities 600 — (21) 579 Total debt securities available-for-sale $ 1,969,171 $ 651 $ (194,694) $ 1,775,128 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, 2023 and December 31, 2022, accrued interest receivable on investment securities available-for-sale was $5.13 million and $5.98 million, respectively. At September 30, 2023 and December 31, 2022, 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, 2023. 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 $ 193,901 $ 188,714 Due after one year through five years 916,116 833,950 Due after five years through ten years 12,827 11,068 Due after ten years 20,574 19,047 Mortgage-backed securities 660,447 552,463 Total debt securities available-for-sale $ 1,803,865 $ 1,605,242 The following table summarizes gross unrealized losses and fair value by investment category and age. At September 30, 2023, the Company’s available-for-sale securities portfolio consisted of 698 securities, 698 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, 2023 U.S. Treasury and Federal agencies securities $ — $ — $ 946,962 $ (81,310) $ 946,962 $ (81,310) U.S. States and political subdivisions securities 23,888 (1,278) 73,096 (7,827) 96,984 (9,105) Mortgage-backed securities - Federal agencies 13,010 (479) 539,453 (107,505) 552,463 (107,984) Corporate debt securities — — 8,251 (206) 8,251 (206) Foreign government and other securities — — 582 (18) 582 (18) Total debt securities available-for-sale $ 36,898 $ (1,757) $ 1,568,344 $ (196,866) $ 1,605,242 $ (198,623) December 31, 2022 U.S. Treasury and Federal agencies securities $ 164,481 $ (6,299) $ 834,117 $ (85,846) $ 998,598 $ (92,145) U.S. States and political subdivisions securities 57,592 (2,126) 38,834 (6,373) 96,426 (8,499) Mortgage-backed securities - Federal agencies 198,469 (13,482) 426,989 (80,192) 625,458 (93,674) Corporate debt securities 16,132 (355) — — 16,132 (355) Foreign government and other securities 484 (16) 95 (5) 579 (21) Total debt securities available-for-sale $ 437,158 $ (22,278) $ 1,300,035 $ (172,416) $ 1,737,193 $ (194,694) The Company does not consider available-for-sale securities with unrealized losses at September 30, 2023 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) 2023 2022 2023 2022 Gross realized gains $ — $ — $ 1,286 $ — Gross realized losses — — (1,330) — Net realized losses $ — $ — $ (44) $ — At September 30, 2023 and December 31, 2022, investment securities available-for-sale with carrying values of $418.28 million and $282.87 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
Loan and Lease Financings	Sep. 30, 2023
Receivables [Abstract]
Loan and Lease Financings	Loan and Lease Financings The Company evaluates loans and leases for credit quality at least annually but more frequently if certain circumstances occur (such as material new information which becomes available and indicates a potential change in credit risk). The Company uses two methods to assess credit risk: loan or lease credit quality grades and credit risk classifications. The purpose of the loan or lease credit quality grade is to document the degree of risk associated with individual credits as well as inform management of the degree of risk in the portfolio taken as a whole. Credit risk classifications are used to categorize loans by degree of risk and to designate individual or committee approval authorities for higher risk credits at the time of origination. Credit risk classifications include categories for: Acceptable, Marginal, Special Attention, Special Risk, Restricted by Policy, Regulated and Prohibited by Law. All loans and leases, except residential real estate and home equity loans and consumer loans, are assigned credit quality grades on a scale from 1 to 12 with grade 1 representing superior credit quality. The criteria used to assign grades to extensions of credit that exhibit potential problems or well-defined weaknesses are primarily based upon the degree of risk and the likelihood of orderly repayment, and their effect on the Company’s safety and soundness. Loans or leases graded 7 or weaker are considered “special attention” credits and, as such, relationships in excess of $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 predominantly consists of loans to borrowers in the auto rental and commercial auto leasing industries. 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 both the U.S. and 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 has been primarily to the less risky owner-occupied segment. The non-owner-occupied segment accounts for less than half of the commercial real estate portfolio and 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, 2023 and gross charge-offs for the nine months ended September 30, 2023. Term Loans and Leases by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and agricultural Grades 1-6 $ 124,559 $ 127,855 $ 76,034 $ 43,890 $ 24,025 $ 18,156 $ 316,644 $ — $ 731,163 Grades 7-12 4,203 2,304 6,341 494 1,162 677 16,707 — 31,888 Total commercial and agricultural 128,762 130,159 82,375 44,384 25,187 18,833 333,351 — 763,051 Current period gross charge-offs 455 411 — 17 4 — 1,946 — 2,833 Solar Grades 1-6 129,390 24,436 89,699 30,775 57,010 26,392 — — 357,702 Grades 7-12 — — — 1,054 5,513 680 — — 7,247 Total solar 129,390 24,436 89,699 31,829 62,523 27,072 — — 364,949 Current period gross charge-offs — — — — — — — — — Auto and light truck Grades 1-6 471,833 290,946 75,619 30,020 17,041 6,856 — — 892,315 Grades 7-12 1,033 2,471 789 3,116 817 943 — — 9,169 Total auto and light truck 472,866 293,417 76,408 33,136 17,858 7,799 — — 901,484 Current period gross charge-offs — 140 75 4 19 63 — — 301 Medium and heavy duty truck Grades 1-6 86,301 132,020 50,345 28,630 20,275 5,631 — — 323,202 Grades 7-12 — — — — — — — — — Total medium and heavy duty truck 86,301 132,020 50,345 28,630 20,275 5,631 — — 323,202 Current period gross charge-offs — — — — — — — — — Aircraft Grades 1-6 166,133 389,870 214,169 179,737 49,474 41,619 5,776 — 1,046,778 Grades 7-12 4,310 9,677 7,161 4,819 — 6,836 — — 32,803 Total aircraft 170,443 399,547 221,330 184,556 49,474 48,455 5,776 — 1,079,581 Current period gross charge-offs — — — — — — — — — Construction equipment Grades 1-6 370,642 372,029 149,279 74,922 36,373 10,066 22,795 2,418 1,038,524 Grades 7-12 4,689 16,805 1,180 568 154 41 — 136 23,573 Total construction equipment 375,331 388,834 150,459 75,490 36,527 10,107 22,795 2,554 1,062,097 Current period gross charge-offs — 44 1 — — — — — 45 Commercial real estate Grades 1-6 252,567 252,121 154,744 109,181 90,192 202,871 292 — 1,061,968 Grades 7-12 144 2,747 856 5,752 4,602 12,130 — — 26,231 Total commercial real estate 252,711 254,868 155,600 114,933 94,794 215,001 292 — 1,088,199 Current period gross charge-offs — 39 — — 179 — — — 218 Residential real estate and home equity Performing 67,545 112,070 92,751 89,539 31,394 75,909 151,550 5,121 625,879 Nonperforming — 84 74 — 414 632 356 76 1,636 Total residential real estate and home equity 67,545 112,154 92,825 89,539 31,808 76,541 151,906 5,197 627,515 Current period gross charge-offs — — — — — 54 1 — 55 Consumer Performing 43,514 53,780 22,705 7,552 3,441 1,346 10,841 — 143,179 Nonperforming — 173 120 49 42 7 — — 391 Total consumer 43,514 53,953 22,825 7,601 3,483 1,353 10,841 — 143,570 Current period gross charge-offs $ 353 $ 374 $ 90 $ 26 $ 13 $ 3 $ 20 $ — $ 879 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, 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 $ 159,317 $ 107,232 $ 71,365 $ 35,874 $ 17,192 $ 13,860 $ 370,553 $ — $ 775,393 Grades 7-12 4,491 5,934 60 2,094 1,644 1,040 21,375 — 36,638 Total commercial and agricultural 163,808 113,166 71,425 37,968 18,836 14,900 391,928 — 812,031 Solar Grades 1-6 109,393 113,276 35,660 72,652 18,518 20,654 — — 370,153 Grades 7-12 — — 1,091 5,678 701 3,540 — — 11,010 Total solar 109,393 113,276 36,751 78,330 19,219 24,194 — — 381,163 Auto and light truck Grades 1-6 521,399 155,508 62,063 32,975 10,946 3,476 — — 786,367 Grades 7-12 5,972 3,366 5,836 2,836 1,792 1,948 — — 21,750 Total auto and light truck 527,371 158,874 67,899 35,811 12,738 5,424 — — 808,117 Medium and heavy duty truck Grades 1-6 158,296 66,533 43,711 31,980 10,053 3,274 — — 313,847 Grades 7-12 — — — — — 15 — — 15 Total medium and heavy duty truck 158,296 66,533 43,711 31,980 10,053 3,289 — — 313,862 Aircraft Grades 1-6 438,481 273,726 213,661 57,379 31,085 35,012 3,687 — 1,053,031 Grades 7-12 12,962 4,253 6,190 — — 1,286 — — 24,691 Total aircraft 451,443 277,979 219,851 57,379 31,085 36,298 3,687 — 1,077,722 Construction equipment Grades 1-6 475,854 213,349 106,409 59,204 17,834 4,593 23,310 2,754 903,307 Grades 7-12 20,709 7,757 2,483 1,878 313 32 583 1,441 35,196 Total construction equipment 496,563 221,106 108,892 61,082 18,147 4,625 23,893 4,195 938,503 Commercial real estate Grades 1-6 271,526 164,173 121,685 97,470 102,271 168,391 251 — 925,767 Grades 7-12 1,532 1,716 7,824 5,789 47 1,070 — — 17,978 Total commercial real estate 273,058 165,889 129,509 103,259 102,318 169,461 251 — 943,745 Residential real estate and home equity Performing 115,154 100,690 97,205 34,498 6,864 81,653 142,724 4,115 582,903 Nonperforming — 131 693 — — 725 180 105 1,834 Total residential real estate and home equity 115,154 100,821 97,898 34,498 6,864 82,378 142,904 4,220 584,737 Consumer Performing 74,258 34,619 12,924 7,375 2,977 692 18,098 — 150,943 Nonperforming 148 65 49 53 12 12 — — 339 Total consumer $ 74,406 $ 34,684 $ 12,973 $ 7,428 $ 2,989 $ 704 $ 18,098 $ — $ 151,282 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, 2023 Commercial and agricultural $ 756,225 $ 572 $ — $ — $ 756,797 $ 6,254 $ 763,051 Solar 364,949 — — — 364,949 — 364,949 Auto and light truck 895,298 1,115 12 — 896,425 5,059 901,484 Medium and heavy duty truck 323,202 — — — 323,202 — 323,202 Aircraft 1,079,135 — 446 — 1,079,581 — 1,079,581 Construction equipment 1,059,212 2,270 — — 1,061,482 615 1,062,097 Commercial real estate 1,085,383 — — — 1,085,383 2,816 1,088,199 Residential real estate and home equity 624,675 811 393 111 625,990 1,525 627,515 Consumer 142,550 562 67 43 143,222 348 143,570 Total $ 6,330,629 $ 5,330 $ 918 $ 154 $ 6,337,031 $ 16,617 $ 6,353,648 December 31, 2022 Commercial and agricultural $ 810,223 $ 944 $ — $ — $ 811,167 $ 864 $ 812,031 Solar 381,163 — — — 381,163 — 381,163 Auto and light truck 793,610 353 1 — 793,964 14,153 808,117 Medium and heavy duty truck 313,845 — 2 — 313,847 15 313,862 Aircraft 1,075,865 223 1,063 — 1,077,151 571 1,077,722 Construction equipment 932,603 431 — — 933,034 5,469 938,503 Commercial real estate 940,516 — — — 940,516 3,229 943,745 Residential real estate and home equity 582,053 562 288 49 582,952 1,785 584,737 Consumer 150,328 416 199 5 150,948 334 151,282 Total $ 5,980,206 $ 2,929 $ 1,553 $ 54 $ 5,984,742 $ 26,420 $ 6,011,162 Accrued interest receivable on loans and leases at September 30, 2023 and December 31, 2022 was $22.81 million and $18.75 million, respectively. Loan Modification Disclosures Pursuant to ASU 2022-02 The following table shows the amortized cost of loans and leases at September 30, 2023 that were both experiencing financial difficulty and modified during the three months ended September 30, 2023, segregated by portfolio segment and type of modification. The percentage of the amortized cost of loans and leases that were modified to borrowers in financial distress as compared to the amortized cost of each segment of financial receivable is also presented below. (Dollars in thousands) Payment Term Interest Combination % of Total Commercial and agricultural $ 196 $ — $ — $ 500 0.09 % Total $ 196 $ — $ — $ 500 0.01 % The following table shows the amortized cost of loans and leases at September 30, 2023 that were both experiencing financial difficulty and modified during the nine months ended September 30, 2023, segregated by portfolio segment and type of modification. The percentage of the amortized cost of loans and leases that were modified to borrowers in financial distress as compared to the amortized cost of each segment of financial receivable is also presented below. (Dollars in thousands) Payment Term Interest Combination % of Total Commercial and agricultural $ 3,360 $ 125 $ — $ 1,312 0.63 % Construction equipment — 1,809 — — 0.17 Commercial real estate 296 — 451 — 0.07 Total $ 3,656 $ 1,934 $ 451 $ 1,312 0.12 % There were $0.19 million commitments to lend additional amounts to the borrowers included in the previous tables at September 30, 2023. The Company closely monitors the performance of loans and leases that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table shows the performance of such loans and leases that have been modified during the three months ended September 30, 2023. (Dollars in thousands) Current 30-59 60-89 90 Days or Total Commercial and agricultural $ 696 $ — $ — $ — $ — Total $ 696 $ — $ — $ — $ — The following table shows the performance of such loans and leases that have been modified during the nine months ended September 30, 2023. (Dollars in thousands) Current 30-59 60-89 90 Days or Total Commercial and agricultural $ 1,633 $ — $ — $ 3,164 $ 3,164 Construction equipment 1,809 — — — — Commercial real estate 747 — — — — Total $ 4,189 $ — $ — $ 3,164 $ 3,164 The following table shows the financial effect of loan and lease modifications presented above to borrowers experiencing financial difficulty for the three months ended September 30, 2023. Weighted- Combination Weighted-Average Payment Delay and Term Extension (in months) Commercial and agricultural 6 13 Total 6 13 The following table shows the financial effect of loan and lease modifications presented above to borrowers experiencing financial difficulty for the nine months ended September 30, 2023. Weighted- Weighted- Weighted- Combination Weighted-Average Payment Delay and Term Extension (in months) Commercial and agricultural — % 3 6 44 Construction equipment — % 5 0 0 Commercial real estate 3.00 % 0 3 0 Total 3.00 % 4 6 44 There was one modified loan that had a payment default during the nine months ended September 30, 2023 and was modified in the twelve months prior to that default to a borrower experiencing financial difficulty. Upon the Company’s determination that a modified loan or lease has subsequently been deemed uncollectible, the loan or lease is written off. Therefore, the amortized cost of the loan is reduced by the uncollectible amount and the allowance for loan and lease losses is adjusted by the same amount. Troubled Debt Restructuring (TDR) Disclosures Prior to the Adoption of ASU 2022-02 There were no loan and lease modifications classified as a TDR during the three and nine months ended September 30, 2022. 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 that resulted in an interest rate below market rate. There were no TDR 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. 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 December 31, 2022. (Dollars in thousands) December 31, Performing TDRs $ — Nonperforming TDRs 3,640 Total TDRs $ 3,640

Allowance for Credit Losses

Allowance for Credit Losses	9 Months Ended
Allowance for Credit Losses	Sep. 30, 2023
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, 2023 and 2022. (Dollars in thousands) Commercial and Solar Auto and Medium Aircraft Construction Commercial Residential Consumer Total September 30, 2023 Balance, beginning of period $ 16,637 $ 6,308 $ 17,173 $ 7,556 $ 40,571 $ 26,105 $ 20,356 $ 6,767 $ 2,069 $ 143,542 Charge-offs 2,261 — 189 — — — — 45 283 2,778 Recoveries 20 — 1,825 — 243 284 — 1 78 2,451 Net charge-offs (recoveries) 2,241 — (1,636) — (243) (284) — 44 205 327 Provision (recovery of provision) 573 (203) (2,471) 155 (354) 506 2,288 168 197 859 Balance, end of period $ 14,969 $ 6,105 $ 16,338 $ 7,711 $ 40,460 $ 26,895 $ 22,644 $ 6,891 $ 2,061 $ 144,074 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 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, 2023 and 2022. (Dollars in thousands) Commercial and Solar Auto and Medium Aircraft Construction Commercial Residential Consumer Total September 30, 2023 Balance, beginning of period $ 14,635 $ 7,217 $ 18,634 $ 7,566 $ 41,093 $ 24,039 $ 17,431 $ 6,478 $ 2,175 $ 139,268 Charge-offs 2,833 — 301 — — 45 218 55 879 4,331 Recoveries 209 — 3,414 — 746 291 6 327 189 5,182 Net charge-offs (recoveries) 2,624 — (3,113) — (746) (246) 212 (272) 690 (851) Provision (recovery of provision) 2,958 (1,112) (5,409) 145 (1,379) 2,610 5,425 141 576 3,955 Balance, end of period $ 14,969 $ 6,105 $ 16,338 $ 7,711 $ 40,460 $ 26,895 $ 22,644 $ 6,891 $ 2,061 $ 144,074 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 The allowance for credit losses increased during the quarter in response to loan growth. The previous quarter’s forecast adjustment was maintained as it continues to be applicable to economic conditions expected during the forecast period. Ongoing risks include a sluggish domestic GDP outlook, tightening credit conditions, broader market liquidity concerns, persistent inflation, higher interest rates, and heightened geopolitical uncertainty. Credit quality metrics remain stable with special attention credit outstandings showing minimal change during the quarter and continued low delinquency rates. Charge-off activity during the quarter increased as compared to the previous quarter but was largely offset by ongoing recoveries resulting in a modest net charge-off position for the period. Commercial and agricultural – the decrease in the allowance in the current quarter was principally due to a decrease in loan balances and the elimination of a specific impairment on one account because of a charge-off during the period. The allowance is higher year-to-date due primarily to an upward adjustment to qualitative factors in the portfolio in the prior period to recognize higher risks in the manufacturing sector. Solar – the allowance declined due to a decrease in loan balances. Credit quality remains stable. Auto and light truck – the allowance was lower during the quarter and year-to-date as a decline in loan outstandings in higher risk segments of the portfolio was only partially offset by continued loan growth in the auto rental and leasing sectors. Medium and heavy duty truck – the allowance increased due to modest loan growth. Credit quality metrics continue to be strong for this portfolio. Energy price volatility and driver availability remain a challenge. Aircraft – the allowance decreased during the quarter as loan growth in the domestic portfolio was offset by a decline in loan balances in the higher reserved foreign segment of the portfolio. The allowance decreased year-to-date due to lower historical loss rates due to recovery activity with minimal change in loan outstandings. The portfolio has been bolstered by higher 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 continued loan growth in the portfolio. Commercial real estate – the allowance increased due to loan growth. Higher interest rates and shifting demand dynamics have impacted commercial real estate. The Company’s exposure to non-owner occupied office property is minimal. Residential real estate and home equity – the allowance increased due to loan growth. Consumer – the allowance decreased slightly due to lower loan outstandings. Economic Outlook As of September 30, 2023, the most significant economic factors impacting the Company’s loan portfolios are a sluggish domestic growth outlook, exacerbated by persistent inflation, higher interest rates, and global conflicts and resultant elevated geopolitical uncertainty. The Company remains concerned about the impact of tighter credit conditions on the economy and the effect that may have on future economic growth. 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 the Company’s clients. The Company’s assumption was that economic growth will slow during the forecast period and inflation will remain 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, 2023 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) 2023 2022 2023 2022 Balance, beginning of period $ 7,370 $ 5,497 $ 5,616 $ 4,196 Provision (recovery of provision) 649 (281) 2,403 1,020 Balance, end of period $ 8,019 $ 5,216 $ 8,019 $ 5,216

Lease Investments

Lease Investments	9 Months Ended
Lease Investments	Sep. 30, 2023
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) 2023 2022 2023 2022 Direct finance leases: Interest income on lease receivable $ 3,584 $ 2,402 $ 9,939 $ 6,112 Operating leases: Income related to lease payments $ 2,101 $ 2,761 $ 6,930 $ 9,718 Depreciation expense 1,672 2,233 5,570 7,912 Income related to reimbursements from lessees for personal property tax on operating leased equipment for the three months ended September 30, 2023 and 2022 was $0.00 million and $0.08 million, respectively and for the nine months ended September 30, 2023 and 2022 was $0.23 million and $0.31 million, respectively. Expense related to personal property tax payments on operating leased equipment for the three months ended September 30, 2023 and 2022 was $0.00 million and $0.08 million, respectively and for the nine months ended September 30, 2023 and 2022 was $0.23 million and $0.31 million.

Mortgage Servicing Rights

Mortgage Servicing Rights	9 Months Ended
Mortgage Servicing Rights	Sep. 30, 2023
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 $815.27 million and $848.96 million at September 30, 2023 and December 31, 2022, 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) 2023 2022 2023 2022 Mortgage servicing rights: Balance at beginning of period $ 3,874 $ 4,443 $ 4,137 $ 4,671 Additions 119 152 291 660 Amortization (217) (297) (652) (1,033) Carrying value before valuation allowance at end of period 3,776 4,298 3,776 4,298 Valuation allowance: Balance at beginning of period — — — — Impairment recoveries — — — — Balance at end of period $ — $ — $ — $ — Net carrying value of mortgage servicing rights at end of period $ 3,776 $ 4,298 $ 3,776 $ 4,298 Fair value of mortgage servicing rights at end of period $ 8,029 $ 7,493 $ 8,029 $ 7,493 At September 30, 2023 and 2022, the fair value of MSRs exceeded the carrying value reported in the Consolidated Statements of Financial Condition by $4.25 million and $3.20 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 $0.63 million and $0.69 million for the three months ended September 30, 2023 and 2022, respectively. Mortgage loan contractual servicing fees, including late fees and ancillary income, were $1.92 million and $2.13 million for the nine months ended September 30, 2023 and 2022, 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, 2023
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 $ 1,450,666 $ 1,234,866 Standby letters of credit $ 18,111 $ 18,055 Commercial and similar letters of credit $ 2,724 $ 2,368 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
Derivative Financial Instruments	Sep. 30, 2023
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, 2023 Interest rate swap contracts $ 950,362 Other assets $ 27,021 Other liabilities $ 27,531 Loan commitments 4,388 Mortgages held for sale 143 N/A — Forward contracts - mortgage loan 6,250 Mortgages held for sale 36 N/A — Total $ 961,000 $ 27,200 $ 27,531 December 31, 2022 Interest rate swap contracts $ 881,600 Other assets $ 24,838 Other liabilities $ 25,307 Loan commitments 2,638 Mortgages held for sale 67 N/A — Forward contracts - mortgage loan 3,750 Mortgages held for sale 24 N/A — Total $ 887,988 $ 24,929 $ 25,307 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 2023 2022 2023 2022 Interest rate swap contracts Other expense $ (42) $ (252) $ (41) $ (69) Interest rate swap contracts Other income 475 83 766 83 Loan commitments Mortgage banking (14) (197) 76 (424) Forward contracts - mortgage loan Mortgage banking 8 83 12 93 Total $ 427 $ (283) $ 813 $ (317) 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, 2023 Interest rate swaps $ 27,021 $ — $ 27,021 $ — $ 28,555 $ (1,534) December 31, 2022 Interest rate swaps $ 24,838 $ — $ 24,838 $ — $ 25,295 $ (457) 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, 2023 Interest rate swaps $ 27,531 $ — $ 27,531 $ — $ — $ 27,531 Repurchase agreements 48,335 — 48,335 48,335 — — Total $ 75,866 $ — $ 75,866 $ 48,335 $ — $ 27,531 December 31, 2022 Interest rate swaps $ 25,307 $ — $ 25,307 $ — $ — $ 25,307 Repurchase agreements 141,432 — 141,432 141,432 — — Total $ 166,739 $ — $ 166,739 $ 141,432 $ — $ 25,307 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, 2023 and December 31, 2022, repurchase agreements had a remaining contractual maturity of $46.99 million and $138.08 million in overnight and $1.35 million and $3.35 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
Variable Interest Entities	Sep. 30, 2023
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 $0.66 million and $0.52 million for the three months ended September 30, 2023 and 2022, respectively, and $1.99 million and $1.55 million for the nine months ended September 30, 2023 and 2022, respectively. The Company also recognized $0.57 million and $0.00 million of investment tax credits for the three months ended September 30, 2023 and 2022, respectively, and $25.02 million and $9.48 million for the nine months ended September 30, 2023 and 2022, 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 includes 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 projects, 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, 2023 December 31, 2022 Investment carrying amount $ 84,818 $ 70,887 Unfunded capital and other commitments 76,505 64,520 Maximum exposure to loss 65,643 45,020 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, 2023 and December 31, 2022, approximately $65.18 million and $66.26 million, respectively, of the Company’s assets and $0.00 million and $0.00 million, respectively, 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 is therefore reported in the financial statements as an unconsolidated subsidiary. The junior subordinated debentures are reflected as subordinated notes on the Consolidated Statements of Financial Condition with the corresponding interest distributions reflected as Interest Expense on the Consolidated Statements of Income. The common shares issued by the Capital Trust are included in Other Assets on the Consolidated 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, 2023. (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 7.15 % 9/15/2037 Total $ 58,764 (1) Fixed rate through life of debt. (2) 3-Month Term SOFR + the 3-Month tenor spread adjustment + 1.48% through remaining life of debt.

Earnings Per Share

Earnings Per Share	9 Months Ended
Earnings Per Share	Sep. 30, 2023
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, 2023 and 2022. 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) 2023 2022 2023 2022 Distributed earnings allocated to common stock $ 7,900 $ 7,890 $ 23,694 $ 23,230 Undistributed earnings allocated to common stock 24,707 24,571 71,894 65,489 Net earnings allocated to common stock 32,607 32,461 95,588 88,719 Net earnings allocated to participating securities 332 276 910 722 Net income allocated to common stock and participating securities $ 32,939 $ 32,737 $ 96,498 $ 89,441 Weighted average shares outstanding for basic earnings per common share 24,660,508 24,656,736 24,677,914 24,697,106 Dilutive effect of stock compensation — — — — Weighted average shares outstanding for diluted earnings per common share 24,660,508 24,656,736 24,677,914 24,697,106 Basic earnings per common share $ 1.32 $ 1.32 $ 3.87 $ 3.59 Diluted earnings per common share $ 1.32 $ 1.32 $ 3.87 $ 3.59

Stock Based Compensation

Stock Based Compensation	9 Months Ended
Stock Based Compensation	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock Based Compensation	Stock Based Compensation As of September 30, 2023, 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, 2022. 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 (ESPP). 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, 2023. 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, 2023 and 2022. As of September 30, 2023 and 2022 there were no outstanding stock options. There were no stock options exercised during the nine months ended September 30, 2023 and 2022. All shares issued in connection with stock option exercises are issued from available treasury stock. As of September 30, 2023, there was $11.02 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 3.45 years.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
Accumulated Other Comprehensive Loss	Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive 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) 2023 2022 2023 2022 Realized losses included in net income $ — $ — $ (44) $ — Losses on investment securities available-for-sale — — (44) — Income before income taxes Tax effect — — 10 — Income tax expense Net of tax $ — $ — $ (34) $ — Net income

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2023
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, 2023 and December 31, 2022. Interest and penalties are recognized through the income tax provision. For the three and nine months ended September 30, 2023 and 2022, the Company recognized no interest or penalties. There were no accrued interest and penalties at September 30, 2023 and December 31, 2022. Tax years that remain open and subject to audit include the federal 2019-2022 years and the Indiana 2019-2022 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
Fair Value Measurements	Sep. 30, 2023
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, 2023 and December 31, 2022, 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, 2023 Mortgages held for sale reported at fair value $ 3,118 $ 2,863 $ 255 (1) December 31, 2022 Mortgages held for sale reported at fair value $ 3,914 $ 3,766 $ 148 (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, 2023 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 539,836 $ 407,126 $ — $ 946,962 U.S. States and political subdivisions securities — 92,846 4,138 96,984 Mortgage-backed securities — Federal agencies — 552,463 — 552,463 Corporate debt securities — 8,251 — 8,251 Foreign government and other securities — 582 — 582 Total debt securities available-for-sale 539,836 1,061,268 4,138 1,605,242 Mortgages held for sale — 3,118 — 3,118 Accrued income and other assets (interest rate swap agreements) — 27,021 — 27,021 Total $ 539,836 $ 1,091,407 $ 4,138 $ 1,635,381 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 27,531 $ — $ 27,531 Total $ — $ 27,531 $ — $ 27,531 December 31, 2022 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 573,679 $ 424,919 $ — $ 998,598 U.S. States and political subdivisions securities — 121,298 1,464 122,762 Mortgage-backed securities — Federal agencies — 637,058 — 637,058 Corporate debt securities — 16,131 — 16,131 Foreign government and other securities — 579 — 579 Total debt securities available-for-sale 573,679 1,199,985 1,464 1,775,128 Mortgages held for sale — 3,914 — 3,914 Accrued income and other assets (interest rate swap agreements) — 24,838 — 24,838 Total $ 573,679 $ 1,228,737 $ 1,464 $ 1,803,880 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 25,307 $ — $ 25,307 Total $ — $ 25,307 $ — $ 25,307 The following table shows changes in Level 3 assets measured at fair value on a recurring basis for the quarter ended September 30, 2023 and 2022. (Dollars in thousands) U.S. States and Beginning balance July 1, 2023 $ 4,249 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (loss) (26) Purchases — Issuances — Sales — Settlements — Maturities (85) Transfers into Level 3 — Transfers out of Level 3 — Ending balance September 30, 2023 $ 4,138 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 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, 2023 or 2022. 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, 2023 Debt securities available-for sale Direct placement municipal securities $ 4,138 Discounted cash flows Credit spread assumption 4.87% - 6.82% 6.37 % December 31, 2022 Debt securities available-for sale Direct placement municipal securities $ 1,464 Discounted cash flows Credit spread assumption 0.22% - 4.09% 3.49 % 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, 2023: collateral-dependent impaired loans - $2.25 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, 2023 Collateral-dependent impaired loans $ — $ — $ — $ — Accrued income and other assets (mortgage servicing rights) — — 3,776 3,776 Accrued income and other assets (repossessions) — — 233 233 Accrued income and other assets (other real estate) — — 117 117 Total $ — $ — $ 4,126 $ 4,126 December 31, 2022 Collateral-dependent impaired loans $ — $ — $ — $ — Accrued income and other assets (mortgage servicing rights) — — 4,137 4,137 Accrued income and other assets (repossessions) — — 327 327 Accrued income and other assets (other real estate) — — 104 104 Total $ — $ — $ 4,568 $ 4,568 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, 2023 Collateral-dependent impaired loans $ — $ — Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 0% - 0% 0.0 % Mortgage servicing rights 3,776 8,029 Discounted cash flows Constant prepayment rate (CPR) 5.4% - 14.6% 7.8 % Discount rate 11.8% - 13.8% 11.9 % Repossessions 233 234 Appraisals, trade publications and auction values Discount for lack of marketability 0% - 4% 0 % Other real estate 117 117 Appraisals Discount for lack of marketability 0% - 0% 0 % December 31, 2022 Collateral-dependent impaired loans $ — $ — Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 0% - 0% 0.0 % Mortgage servicing rights 4,137 8,007 Discounted cash flows Constant prepayment rate (CPR) 7.6% - 9.6% 8.2 % Discount rate 11.4% - 14.2% 11.5 % Repossessions 327 370 Appraisals, trade publications and auction values Discount for lack of marketability 2% - 9% 7 % Other real estate 104 104 Appraisals Discount for lack of marketability 0% - 0% 0 % 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, 2023 Assets: Cash and due from banks $ 75,729 $ 75,729 $ 75,729 $ — $ — Federal funds sold and interest bearing deposits with other banks 35,406 35,406 35,406 — — Investment securities, available-for-sale 1,605,242 1,605,242 539,836 1,061,268 4,138 Other investments 25,075 25,075 25,075 — — Mortgages held for sale 3,118 3,118 — 3,118 — Loans and leases, net of allowance for loan and lease losses 6,209,574 5,980,435 — — 5,980,435 Mortgage servicing rights 3,776 8,029 — — 8,029 Accrued interest receivable 28,120 28,120 — 28,120 — Interest rate swaps 27,021 27,021 — 27,021 — Liabilities: Deposits $ 6,967,492 $ 6,954,179 $ 5,278,426 $ 1,675,753 $ — Short-term borrowings 272,092 272,092 48,505 223,587 — Long-term debt and mandatorily redeemable securities 46,533 45,386 — 45,386 — Subordinated notes 58,764 50,889 — 50,889 — Accrued interest payable 29,030 29,030 — 29,030 — Interest rate swaps 27,531 27,531 — 27,531 — Off-balance-sheet instruments * — 144 — 144 — December 31, 2022 Assets: Cash and due from banks $ 84,703 $ 84,703 $ 84,703 $ — $ — Federal funds sold and interest bearing deposits with other banks 38,094 38,094 38,094 — — Investment securities, available-for-sale 1,775,128 1,775,128 573,679 1,199,985 1,464 Other investments 25,293 25,293 25,293 — — Mortgages held for sale 3,914 3,914 — 3,914 — Loans and leases, net of allowance for loan and lease losses 5,871,894 5,712,972 — — 5,712,972 Mortgage servicing rights 4,137 8,007 — — 8,007 Accrued interest receivable 24,747 24,747 — 24,747 — Interest rate swaps 24,838 24,838 — 24,838 — Liabilities: Deposits $ 6,928,265 $ 6,909,392 $ 5,787,806 $ 1,121,586 $ — Short-term borrowings 215,529 215,529 139,079 76,450 — Long-term debt and mandatorily redeemable securities 46,555 45,111 — 45,111 — Subordinated notes 58,764 51,398 — 51,398 — Accrued interest payable 5,999 5,999 — 5,999 — Interest rate swaps 25,307 25,307 — 25,307 — Off-balance-sheet instruments * — 108 — 108 — * 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.

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
Accounting Policies (Policies)	Sep. 30, 2023
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 (2022 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, 2022 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. Only those costs incurred as a direct result of closing a lease transaction are capitalized and all other initial direct costs are expensed immediately. 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. 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. Occasionally, the Company modifies loans and leases to borrowers in financial distress (typically denoted by internal credit quality graded “substandard” or worse) by providing term extensions, other-than-insignificant payment delays, or interest rate reductions. In some cases, a combination of modifications are made to the same loan or lease. These modifications typically result from the Company’s loss mitigation activities. If the Company determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance for loan and lease losses estimate or a charge-off to the allowance for loan and lease losses.

Investment Securities (Tables)

Investment Securities (Tables)	9 Months Ended
Investment Securities (Tables)	Sep. 30, 2023
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, 2023 U.S. Treasury and Federal agencies securities $ 1,028,272 $ — $ (81,310) $ 946,962 U.S. States and political subdivisions securities 106,089 — (9,105) 96,984 Mortgage-backed securities — Federal agencies 660,447 — (107,984) 552,463 Corporate debt securities 8,457 — (206) 8,251 Foreign government and other securities 600 — (18) 582 Total debt securities available-for-sale $ 1,803,865 $ — $ (198,623) $ 1,605,242 December 31, 2022 U.S. Treasury and Federal agencies securities $ 1,090,743 $ — $ (92,145) $ 998,598 U.S. States and political subdivisions securities 130,670 591 (8,499) 122,762 Mortgage-backed securities — Federal agencies 730,672 60 (93,674) 637,058 Corporate debt securities 16,486 — (355) 16,131 Foreign government and other securities 600 — (21) 579 Total debt securities available-for-sale $ 1,969,171 $ 651 $ (194,694) $ 1,775,128
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, 2023. 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 $ 193,901 $ 188,714 Due after one year through five years 916,116 833,950 Due after five years through ten years 12,827 11,068 Due after ten years 20,574 19,047 Mortgage-backed securities 660,447 552,463 Total debt securities available-for-sale $ 1,803,865 $ 1,605,242
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, 2023, the Company’s available-for-sale securities portfolio consisted of 698 securities, 698 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, 2023 U.S. Treasury and Federal agencies securities $ — $ — $ 946,962 $ (81,310) $ 946,962 $ (81,310) U.S. States and political subdivisions securities 23,888 (1,278) 73,096 (7,827) 96,984 (9,105) Mortgage-backed securities - Federal agencies 13,010 (479) 539,453 (107,505) 552,463 (107,984) Corporate debt securities — — 8,251 (206) 8,251 (206) Foreign government and other securities — — 582 (18) 582 (18) Total debt securities available-for-sale $ 36,898 $ (1,757) $ 1,568,344 $ (196,866) $ 1,605,242 $ (198,623) December 31, 2022 U.S. Treasury and Federal agencies securities $ 164,481 $ (6,299) $ 834,117 $ (85,846) $ 998,598 $ (92,145) U.S. States and political subdivisions securities 57,592 (2,126) 38,834 (6,373) 96,426 (8,499) Mortgage-backed securities - Federal agencies 198,469 (13,482) 426,989 (80,192) 625,458 (93,674) Corporate debt securities 16,132 (355) — — 16,132 (355) Foreign government and other securities 484 (16) 95 (5) 579 (21) Total debt securities available-for-sale $ 437,158 $ (22,278) $ 1,300,035 $ (172,416) $ 1,737,193 $ (194,694)
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) 2023 2022 2023 2022 Gross realized gains $ — $ — $ 1,286 $ — Gross realized losses — — (1,330) — Net realized losses $ — $ — $ (44) $ —

Loan and Lease Financings (Tabl

Loan and Lease Financings (Tables)	9 Months Ended
Loan and Lease Financings (Tables)	Sep. 30, 2023
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, 2023 and gross charge-offs for the nine months ended September 30, 2023. Term Loans and Leases by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and agricultural Grades 1-6 $ 124,559 $ 127,855 $ 76,034 $ 43,890 $ 24,025 $ 18,156 $ 316,644 $ — $ 731,163 Grades 7-12 4,203 2,304 6,341 494 1,162 677 16,707 — 31,888 Total commercial and agricultural 128,762 130,159 82,375 44,384 25,187 18,833 333,351 — 763,051 Current period gross charge-offs 455 411 — 17 4 — 1,946 — 2,833 Solar Grades 1-6 129,390 24,436 89,699 30,775 57,010 26,392 — — 357,702 Grades 7-12 — — — 1,054 5,513 680 — — 7,247 Total solar 129,390 24,436 89,699 31,829 62,523 27,072 — — 364,949 Current period gross charge-offs — — — — — — — — — Auto and light truck Grades 1-6 471,833 290,946 75,619 30,020 17,041 6,856 — — 892,315 Grades 7-12 1,033 2,471 789 3,116 817 943 — — 9,169 Total auto and light truck 472,866 293,417 76,408 33,136 17,858 7,799 — — 901,484 Current period gross charge-offs — 140 75 4 19 63 — — 301 Medium and heavy duty truck Grades 1-6 86,301 132,020 50,345 28,630 20,275 5,631 — — 323,202 Grades 7-12 — — — — — — — — — Total medium and heavy duty truck 86,301 132,020 50,345 28,630 20,275 5,631 — — 323,202 Current period gross charge-offs — — — — — — — — — Aircraft Grades 1-6 166,133 389,870 214,169 179,737 49,474 41,619 5,776 — 1,046,778 Grades 7-12 4,310 9,677 7,161 4,819 — 6,836 — — 32,803 Total aircraft 170,443 399,547 221,330 184,556 49,474 48,455 5,776 — 1,079,581 Current period gross charge-offs — — — — — — — — — Construction equipment Grades 1-6 370,642 372,029 149,279 74,922 36,373 10,066 22,795 2,418 1,038,524 Grades 7-12 4,689 16,805 1,180 568 154 41 — 136 23,573 Total construction equipment 375,331 388,834 150,459 75,490 36,527 10,107 22,795 2,554 1,062,097 Current period gross charge-offs — 44 1 — — — — — 45 Commercial real estate Grades 1-6 252,567 252,121 154,744 109,181 90,192 202,871 292 — 1,061,968 Grades 7-12 144 2,747 856 5,752 4,602 12,130 — — 26,231 Total commercial real estate 252,711 254,868 155,600 114,933 94,794 215,001 292 — 1,088,199 Current period gross charge-offs — 39 — — 179 — — — 218 Residential real estate and home equity Performing 67,545 112,070 92,751 89,539 31,394 75,909 151,550 5,121 625,879 Nonperforming — 84 74 — 414 632 356 76 1,636 Total residential real estate and home equity 67,545 112,154 92,825 89,539 31,808 76,541 151,906 5,197 627,515 Current period gross charge-offs — — — — — 54 1 — 55 Consumer Performing 43,514 53,780 22,705 7,552 3,441 1,346 10,841 — 143,179 Nonperforming — 173 120 49 42 7 — — 391 Total consumer 43,514 53,953 22,825 7,601 3,483 1,353 10,841 — 143,570 Current period gross charge-offs $ 353 $ 374 $ 90 $ 26 $ 13 $ 3 $ 20 $ — $ 879 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, 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 $ 159,317 $ 107,232 $ 71,365 $ 35,874 $ 17,192 $ 13,860 $ 370,553 $ — $ 775,393 Grades 7-12 4,491 5,934 60 2,094 1,644 1,040 21,375 — 36,638 Total commercial and agricultural 163,808 113,166 71,425 37,968 18,836 14,900 391,928 — 812,031 Solar Grades 1-6 109,393 113,276 35,660 72,652 18,518 20,654 — — 370,153 Grades 7-12 — — 1,091 5,678 701 3,540 — — 11,010 Total solar 109,393 113,276 36,751 78,330 19,219 24,194 — — 381,163 Auto and light truck Grades 1-6 521,399 155,508 62,063 32,975 10,946 3,476 — — 786,367 Grades 7-12 5,972 3,366 5,836 2,836 1,792 1,948 — — 21,750 Total auto and light truck 527,371 158,874 67,899 35,811 12,738 5,424 — — 808,117 Medium and heavy duty truck Grades 1-6 158,296 66,533 43,711 31,980 10,053 3,274 — — 313,847 Grades 7-12 — — — — — 15 — — 15 Total medium and heavy duty truck 158,296 66,533 43,711 31,980 10,053 3,289 — — 313,862 Aircraft Grades 1-6 438,481 273,726 213,661 57,379 31,085 35,012 3,687 — 1,053,031 Grades 7-12 12,962 4,253 6,190 — — 1,286 — — 24,691 Total aircraft 451,443 277,979 219,851 57,379 31,085 36,298 3,687 — 1,077,722 Construction equipment Grades 1-6 475,854 213,349 106,409 59,204 17,834 4,593 23,310 2,754 903,307 Grades 7-12 20,709 7,757 2,483 1,878 313 32 583 1,441 35,196 Total construction equipment 496,563 221,106 108,892 61,082 18,147 4,625 23,893 4,195 938,503 Commercial real estate Grades 1-6 271,526 164,173 121,685 97,470 102,271 168,391 251 — 925,767 Grades 7-12 1,532 1,716 7,824 5,789 47 1,070 — — 17,978 Total commercial real estate 273,058 165,889 129,509 103,259 102,318 169,461 251 — 943,745 Residential real estate and home equity Performing 115,154 100,690 97,205 34,498 6,864 81,653 142,724 4,115 582,903 Nonperforming — 131 693 — — 725 180 105 1,834 Total residential real estate and home equity 115,154 100,821 97,898 34,498 6,864 82,378 142,904 4,220 584,737 Consumer Performing 74,258 34,619 12,924 7,375 2,977 692 18,098 — 150,943 Nonperforming 148 65 49 53 12 12 — — 339 Total consumer $ 74,406 $ 34,684 $ 12,973 $ 7,428 $ 2,989 $ 704 $ 18,098 $ — $ 151,282
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, 2023 Commercial and agricultural $ 756,225 $ 572 $ — $ — $ 756,797 $ 6,254 $ 763,051 Solar 364,949 — — — 364,949 — 364,949 Auto and light truck 895,298 1,115 12 — 896,425 5,059 901,484 Medium and heavy duty truck 323,202 — — — 323,202 — 323,202 Aircraft 1,079,135 — 446 — 1,079,581 — 1,079,581 Construction equipment 1,059,212 2,270 — — 1,061,482 615 1,062,097 Commercial real estate 1,085,383 — — — 1,085,383 2,816 1,088,199 Residential real estate and home equity 624,675 811 393 111 625,990 1,525 627,515 Consumer 142,550 562 67 43 143,222 348 143,570 Total $ 6,330,629 $ 5,330 $ 918 $ 154 $ 6,337,031 $ 16,617 $ 6,353,648 December 31, 2022 Commercial and agricultural $ 810,223 $ 944 $ — $ — $ 811,167 $ 864 $ 812,031 Solar 381,163 — — — 381,163 — 381,163 Auto and light truck 793,610 353 1 — 793,964 14,153 808,117 Medium and heavy duty truck 313,845 — 2 — 313,847 15 313,862 Aircraft 1,075,865 223 1,063 — 1,077,151 571 1,077,722 Construction equipment 932,603 431 — — 933,034 5,469 938,503 Commercial real estate 940,516 — — — 940,516 3,229 943,745 Residential real estate and home equity 582,053 562 288 49 582,952 1,785 584,737 Consumer 150,328 416 199 5 150,948 334 151,282 Total $ 5,980,206 $ 2,929 $ 1,553 $ 54 $ 5,984,742 $ 26,420 $ 6,011,162
Schedule of amortized cost of loans and leases that were both experiencing financial difficulty and modified, segregated by portfolio segment and type of modification.	The following table shows the amortized cost of loans and leases at September 30, 2023 that were both experiencing financial difficulty and modified during the three months ended September 30, 2023, segregated by portfolio segment and type of modification. The percentage of the amortized cost of loans and leases that were modified to borrowers in financial distress as compared to the amortized cost of each segment of financial receivable is also presented below. (Dollars in thousands) Payment Term Interest Combination % of Total Commercial and agricultural $ 196 $ — $ — $ 500 0.09 % Total $ 196 $ — $ — $ 500 0.01 % The following table shows the amortized cost of loans and leases at September 30, 2023 that were both experiencing financial difficulty and modified during the nine months ended September 30, 2023, segregated by portfolio segment and type of modification. The percentage of the amortized cost of loans and leases that were modified to borrowers in financial distress as compared to the amortized cost of each segment of financial receivable is also presented below. (Dollars in thousands) Payment Term Interest Combination % of Total Commercial and agricultural $ 3,360 $ 125 $ — $ 1,312 0.63 % Construction equipment — 1,809 — — 0.17 Commercial real estate 296 — 451 — 0.07 Total $ 3,656 $ 1,934 $ 451 $ 1,312 0.12 %
Schedule of amortized cost of loans and leases that were both experiencing financial difficulty and modified, with delinquency status.	The Company closely monitors the performance of loans and leases that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table shows the performance of such loans and leases that have been modified during the three months ended September 30, 2023. (Dollars in thousands) Current 30-59 60-89 90 Days or Total Commercial and agricultural $ 696 $ — $ — $ — $ — Total $ 696 $ — $ — $ — $ — The following table shows the performance of such loans and leases that have been modified during the nine months ended September 30, 2023. (Dollars in thousands) Current 30-59 60-89 90 Days or Total Commercial and agricultural $ 1,633 $ — $ — $ 3,164 $ 3,164 Construction equipment 1,809 — — — — Commercial real estate 747 — — — — Total $ 4,189 $ — $ — $ 3,164 $ 3,164
Schedule of the financial effect of loan and lease modifications to borrowers experiencing financial difficulties.	The following table shows the financial effect of loan and lease modifications presented above to borrowers experiencing financial difficulty for the three months ended September 30, 2023. Weighted- Combination Weighted-Average Payment Delay and Term Extension (in months) Commercial and agricultural 6 13 Total 6 13 The following table shows the financial effect of loan and lease modifications presented above to borrowers experiencing financial difficulty for the nine months ended September 30, 2023. Weighted- Weighted- Weighted- Combination Weighted-Average Payment Delay and Term Extension (in months) Commercial and agricultural — % 3 6 44 Construction equipment — % 5 0 0 Commercial real estate 3.00 % 0 3 0 Total 3.00 % 4 6 44
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 December 31, 2022. (Dollars in thousands) December 31, Performing TDRs $ — Nonperforming TDRs 3,640 Total TDRs $ 3,640

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)	9 Months Ended
Allowance for Credit Losses (Tables)	Sep. 30, 2023
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, 2023 and 2022. (Dollars in thousands) Commercial and Solar Auto and Medium Aircraft Construction Commercial Residential Consumer Total September 30, 2023 Balance, beginning of period $ 16,637 $ 6,308 $ 17,173 $ 7,556 $ 40,571 $ 26,105 $ 20,356 $ 6,767 $ 2,069 $ 143,542 Charge-offs 2,261 — 189 — — — — 45 283 2,778 Recoveries 20 — 1,825 — 243 284 — 1 78 2,451 Net charge-offs (recoveries) 2,241 — (1,636) — (243) (284) — 44 205 327 Provision (recovery of provision) 573 (203) (2,471) 155 (354) 506 2,288 168 197 859 Balance, end of period $ 14,969 $ 6,105 $ 16,338 $ 7,711 $ 40,460 $ 26,895 $ 22,644 $ 6,891 $ 2,061 $ 144,074 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 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, 2023 and 2022. (Dollars in thousands) Commercial and Solar Auto and Medium Aircraft Construction Commercial Residential Consumer Total September 30, 2023 Balance, beginning of period $ 14,635 $ 7,217 $ 18,634 $ 7,566 $ 41,093 $ 24,039 $ 17,431 $ 6,478 $ 2,175 $ 139,268 Charge-offs 2,833 — 301 — — 45 218 55 879 4,331 Recoveries 209 — 3,414 — 746 291 6 327 189 5,182 Net charge-offs (recoveries) 2,624 — (3,113) — (746) (246) 212 (272) 690 (851) Provision (recovery of provision) 2,958 (1,112) (5,409) 145 (1,379) 2,610 5,425 141 576 3,955 Balance, end of period $ 14,969 $ 6,105 $ 16,338 $ 7,711 $ 40,460 $ 26,895 $ 22,644 $ 6,891 $ 2,061 $ 144,074 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
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) 2023 2022 2023 2022 Balance, beginning of period $ 7,370 $ 5,497 $ 5,616 $ 4,196 Provision (recovery of provision) 649 (281) 2,403 1,020 Balance, end of period $ 8,019 $ 5,216 $ 8,019 $ 5,216

Lease Investments (Tables)

Lease Investments (Tables)	9 Months Ended
Lease Investments (Tables)	Sep. 30, 2023
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) 2023 2022 2023 2022 Direct finance leases: Interest income on lease receivable $ 3,584 $ 2,402 $ 9,939 $ 6,112 Operating leases: Income related to lease payments $ 2,101 $ 2,761 $ 6,930 $ 9,718 Depreciation expense 1,672 2,233 5,570 7,912

Mortgage Servicing Rights (Tabl

Mortgage Servicing Rights (Tables)	9 Months Ended
Mortgage Servicing Rights (Tables)	Sep. 30, 2023
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) 2023 2022 2023 2022 Mortgage servicing rights: Balance at beginning of period $ 3,874 $ 4,443 $ 4,137 $ 4,671 Additions 119 152 291 660 Amortization (217) (297) (652) (1,033) Carrying value before valuation allowance at end of period 3,776 4,298 3,776 4,298 Valuation allowance: Balance at beginning of period — — — — Impairment recoveries — — — — Balance at end of period $ — $ — $ — $ — Net carrying value of mortgage servicing rights at end of period $ 3,776 $ 4,298 $ 3,776 $ 4,298 Fair value of mortgage servicing rights at end of period $ 8,029 $ 7,493 $ 8,029 $ 7,493

Commitments and Financial Ins_2

Commitments and Financial Instruments with Off-Balance-Sheet Risk (Tables)	9 Months Ended
	Sep. 30, 2023
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 $ 1,450,666 $ 1,234,866 Standby letters of credit $ 18,111 $ 18,055 Commercial and similar letters of credit $ 2,724 $ 2,368

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
Derivative Financial Instruments (Tables)	Sep. 30, 2023
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, 2023 Interest rate swap contracts $ 950,362 Other assets $ 27,021 Other liabilities $ 27,531 Loan commitments 4,388 Mortgages held for sale 143 N/A — Forward contracts - mortgage loan 6,250 Mortgages held for sale 36 N/A — Total $ 961,000 $ 27,200 $ 27,531 December 31, 2022 Interest rate swap contracts $ 881,600 Other assets $ 24,838 Other liabilities $ 25,307 Loan commitments 2,638 Mortgages held for sale 67 N/A — Forward contracts - mortgage loan 3,750 Mortgages held for sale 24 N/A — Total $ 887,988 $ 24,929 $ 25,307
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 2023 2022 2023 2022 Interest rate swap contracts Other expense $ (42) $ (252) $ (41) $ (69) Interest rate swap contracts Other income 475 83 766 83 Loan commitments Mortgage banking (14) (197) 76 (424) Forward contracts - mortgage loan Mortgage banking 8 83 12 93 Total $ 427 $ (283) $ 813 $ (317)
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, 2023 Interest rate swaps $ 27,021 $ — $ 27,021 $ — $ 28,555 $ (1,534) December 31, 2022 Interest rate swaps $ 24,838 $ — $ 24,838 $ — $ 25,295 $ (457)
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, 2023 Interest rate swaps $ 27,531 $ — $ 27,531 $ — $ — $ 27,531 Repurchase agreements 48,335 — 48,335 48,335 — — Total $ 75,866 $ — $ 75,866 $ 48,335 $ — $ 27,531 December 31, 2022 Interest rate swaps $ 25,307 $ — $ 25,307 $ — $ — $ 25,307 Repurchase agreements 141,432 — 141,432 141,432 — — Total $ 166,739 $ — $ 166,739 $ 141,432 $ — $ 25,307

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	9 Months Ended
Variable Interest Entities (Tables)	Sep. 30, 2023
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, 2023 December 31, 2022 Investment carrying amount $ 84,818 $ 70,887 Unfunded capital and other commitments 76,505 64,520 Maximum exposure to loss 65,643 45,020
Summary of subordinated notes	The following table shows subordinated notes at September 30, 2023. (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 7.15 % 9/15/2037 Total $ 58,764 (1) Fixed rate through life of debt. (2) 3-Month Term SOFR + the 3-Month tenor spread adjustment + 1.48% through remaining life of debt.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
Earnings Per Share (Tables)	Sep. 30, 2023
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) 2023 2022 2023 2022 Distributed earnings allocated to common stock $ 7,900 $ 7,890 $ 23,694 $ 23,230 Undistributed earnings allocated to common stock 24,707 24,571 71,894 65,489 Net earnings allocated to common stock 32,607 32,461 95,588 88,719 Net earnings allocated to participating securities 332 276 910 722 Net income allocated to common stock and participating securities $ 32,939 $ 32,737 $ 96,498 $ 89,441 Weighted average shares outstanding for basic earnings per common share 24,660,508 24,656,736 24,677,914 24,697,106 Dilutive effect of stock compensation — — — — Weighted average shares outstanding for diluted earnings per common share 24,660,508 24,656,736 24,677,914 24,697,106 Basic earnings per common share $ 1.32 $ 1.32 $ 3.87 $ 3.59 Diluted earnings per common share $ 1.32 $ 1.32 $ 3.87 $ 3.59

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
Accumulated Other Comprehensive Loss (Tables)	Sep. 30, 2023
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) 2023 2022 2023 2022 Realized losses included in net income $ — $ — $ (44) $ — Losses on investment securities available-for-sale — — (44) — Income before income taxes Tax effect — — 10 — Income tax expense Net of tax $ — $ — $ (34) $ — Net income

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
Fair Value Measurements (Tables)	Sep. 30, 2023
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, 2023 Mortgages held for sale reported at fair value $ 3,118 $ 2,863 $ 255 (1) December 31, 2022 Mortgages held for sale reported at fair value $ 3,914 $ 3,766 $ 148 (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, 2023 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 539,836 $ 407,126 $ — $ 946,962 U.S. States and political subdivisions securities — 92,846 4,138 96,984 Mortgage-backed securities — Federal agencies — 552,463 — 552,463 Corporate debt securities — 8,251 — 8,251 Foreign government and other securities — 582 — 582 Total debt securities available-for-sale 539,836 1,061,268 4,138 1,605,242 Mortgages held for sale — 3,118 — 3,118 Accrued income and other assets (interest rate swap agreements) — 27,021 — 27,021 Total $ 539,836 $ 1,091,407 $ 4,138 $ 1,635,381 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 27,531 $ — $ 27,531 Total $ — $ 27,531 $ — $ 27,531 December 31, 2022 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 573,679 $ 424,919 $ — $ 998,598 U.S. States and political subdivisions securities — 121,298 1,464 122,762 Mortgage-backed securities — Federal agencies — 637,058 — 637,058 Corporate debt securities — 16,131 — 16,131 Foreign government and other securities — 579 — 579 Total debt securities available-for-sale 573,679 1,199,985 1,464 1,775,128 Mortgages held for sale — 3,914 — 3,914 Accrued income and other assets (interest rate swap agreements) — 24,838 — 24,838 Total $ 573,679 $ 1,228,737 $ 1,464 $ 1,803,880 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 25,307 $ — $ 25,307 Total $ — $ 25,307 $ — $ 25,307
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, 2023 and 2022. (Dollars in thousands) U.S. States and Beginning balance July 1, 2023 $ 4,249 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (loss) (26) Purchases — Issuances — Sales — Settlements — Maturities (85) Transfers into Level 3 — Transfers out of Level 3 — Ending balance September 30, 2023 $ 4,138 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
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, 2023 Collateral-dependent impaired loans $ — $ — $ — $ — Accrued income and other assets (mortgage servicing rights) — — 3,776 3,776 Accrued income and other assets (repossessions) — — 233 233 Accrued income and other assets (other real estate) — — 117 117 Total $ — $ — $ 4,126 $ 4,126 December 31, 2022 Collateral-dependent impaired loans $ — $ — $ — $ — Accrued income and other assets (mortgage servicing rights) — — 4,137 4,137 Accrued income and other assets (repossessions) — — 327 327 Accrued income and other assets (other real estate) — — 104 104 Total $ — $ — $ 4,568 $ 4,568
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, 2023 Assets: Cash and due from banks $ 75,729 $ 75,729 $ 75,729 $ — $ — Federal funds sold and interest bearing deposits with other banks 35,406 35,406 35,406 — — Investment securities, available-for-sale 1,605,242 1,605,242 539,836 1,061,268 4,138 Other investments 25,075 25,075 25,075 — — Mortgages held for sale 3,118 3,118 — 3,118 — Loans and leases, net of allowance for loan and lease losses 6,209,574 5,980,435 — — 5,980,435 Mortgage servicing rights 3,776 8,029 — — 8,029 Accrued interest receivable 28,120 28,120 — 28,120 — Interest rate swaps 27,021 27,021 — 27,021 — Liabilities: Deposits $ 6,967,492 $ 6,954,179 $ 5,278,426 $ 1,675,753 $ — Short-term borrowings 272,092 272,092 48,505 223,587 — Long-term debt and mandatorily redeemable securities 46,533 45,386 — 45,386 — Subordinated notes 58,764 50,889 — 50,889 — Accrued interest payable 29,030 29,030 — 29,030 — Interest rate swaps 27,531 27,531 — 27,531 — Off-balance-sheet instruments * — 144 — 144 — December 31, 2022 Assets: Cash and due from banks $ 84,703 $ 84,703 $ 84,703 $ — $ — Federal funds sold and interest bearing deposits with other banks 38,094 38,094 38,094 — — Investment securities, available-for-sale 1,775,128 1,775,128 573,679 1,199,985 1,464 Other investments 25,293 25,293 25,293 — — Mortgages held for sale 3,914 3,914 — 3,914 — Loans and leases, net of allowance for loan and lease losses 5,871,894 5,712,972 — — 5,712,972 Mortgage servicing rights 4,137 8,007 — — 8,007 Accrued interest receivable 24,747 24,747 — 24,747 — Interest rate swaps 24,838 24,838 — 24,838 — Liabilities: Deposits $ 6,928,265 $ 6,909,392 $ 5,787,806 $ 1,121,586 $ — Short-term borrowings 215,529 215,529 139,079 76,450 — Long-term debt and mandatorily redeemable securities 46,555 45,111 — 45,111 — Subordinated notes 58,764 51,398 — 51,398 — Accrued interest payable 5,999 5,999 — 5,999 — Interest rate swaps 25,307 25,307 — 25,307 — Off-balance-sheet instruments * — 108 — 108 — * 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, 2023 Debt securities available-for sale Direct placement municipal securities $ 4,138 Discounted cash flows Credit spread assumption 4.87% - 6.82% 6.37 % December 31, 2022 Debt securities available-for sale Direct placement municipal securities $ 1,464 Discounted cash flows Credit spread assumption 0.22% - 4.09% 3.49 %
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, 2023 Collateral-dependent impaired loans $ — $ — Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 0% - 0% 0.0 % Mortgage servicing rights 3,776 8,029 Discounted cash flows Constant prepayment rate (CPR) 5.4% - 14.6% 7.8 % Discount rate 11.8% - 13.8% 11.9 % Repossessions 233 234 Appraisals, trade publications and auction values Discount for lack of marketability 0% - 4% 0 % Other real estate 117 117 Appraisals Discount for lack of marketability 0% - 0% 0 % December 31, 2022 Collateral-dependent impaired loans $ — $ — Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 0% - 0% 0.0 % Mortgage servicing rights 4,137 8,007 Discounted cash flows Constant prepayment rate (CPR) 7.6% - 9.6% 8.2 % Discount rate 11.4% - 14.2% 11.5 % Repossessions 327 370 Appraisals, trade publications and auction values Discount for lack of marketability 2% - 9% 7 % Other real estate 104 104 Appraisals Discount for lack of marketability 0% - 0% 0 %

Accounting Policies (Details)

Accounting Policies (Details)	9 Months Ended
Accounting Policies (Details)	Sep. 30, 2023
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, 2023	Dec. 31, 2022
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Due in one year or less	$ 193,901
Due after one year through five years	916,116
Due after five years through ten years	12,827
Due after ten years	20,574
Mortgage-backed securities	660,447
Total debt securities available-for-sale	1,803,865	$ 1,969,171
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Due in one year or less	188,714
Due after one year through five years	833,950
Due after five years through ten years	11,068
Due after ten years	19,047
Mortgage-backed securities	552,463
Total debt securities available-for-sale	1,605,242	1,775,128
Accrued interest receivable on investment securities available-for-sale	5,130	5,980
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	1,028,272	1,090,743
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	946,962	998,598
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	106,089	130,670
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	96,984	122,762
Mortgage-backed securities - Federal agencies
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Total debt securities available-for-sale	660,447	730,672
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	552,463	637,058
Corporate debt securities
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Total debt securities available-for-sale	8,457	16,486
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	8,251	16,131
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	$ 582	$ 579

Investment Securities (Details

Investment Securities (Details 2) $ in Thousands	3 Months Ended		9 Months Ended
Investment Securities (Details 2) $ in Thousands	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	$ 1,803,865		$ 1,803,865		$ 1,969,171
Gross Unrealized Gains	0		0		651
Gross Unrealized Losses	(198,623)		(198,623)		(194,694)
Investment securities available-for-sale	1,605,242		1,605,242		1,775,128
Fair Value
Less than 12 Months	36,898		36,898		437,158
12 months or Longer	1,568,344		1,568,344		1,300,035
Total fair value	1,605,242		1,605,242		1,737,193
Unrealized Losses
Less than 12 Months	(1,757)		(1,757)		(22,278)
12 months or Longer	(196,866)		(196,866)		(172,416)
Total unrealized losses	(198,623)		(198,623)		(194,694)
Gross realized gains and losses
Gross realized gains	0	$ 0	1,286	$ 0
Gross realized losses	0	0	(1,330)	0
Net realized (losses) gains	0	$ 0	(44)	$ 0
Investment securities pledged as collateral	$ 418,280		$ 418,280		282,870
Number of available-for-sale debt securities	698		698
Number of available-for-sale debt securities in an unrealized loss position	698		698
U.S. Treasury and Federal agencies securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	$ 1,028,272		$ 1,028,272		1,090,743
Gross Unrealized Gains	0		0		0
Gross Unrealized Losses	(81,310)		(81,310)		(92,145)
Investment securities available-for-sale	946,962		946,962		998,598
Fair Value
Less than 12 Months	0		0		164,481
12 months or Longer	946,962		946,962		834,117
Total fair value	946,962		946,962		998,598
Unrealized Losses
Less than 12 Months	0		0		(6,299)
12 months or Longer	(81,310)		(81,310)		(85,846)
Total unrealized losses	(81,310)		(81,310)		(92,145)
U.S. States and political subdivisions securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	106,089		106,089		130,670
Gross Unrealized Gains	0		0		591
Gross Unrealized Losses	(9,105)		(9,105)		(8,499)
Investment securities available-for-sale	96,984		96,984		122,762
Fair Value
Less than 12 Months	23,888		23,888		57,592
12 months or Longer	73,096		73,096		38,834
Total fair value	96,984		96,984		96,426
Unrealized Losses
Less than 12 Months	(1,278)		(1,278)		(2,126)
12 months or Longer	(7,827)		(7,827)		(6,373)
Total unrealized losses	(9,105)		(9,105)		(8,499)
Mortgage-backed securities - Federal agencies
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	660,447		660,447		730,672
Gross Unrealized Gains	0		0		60
Gross Unrealized Losses	(107,984)		(107,984)		(93,674)
Investment securities available-for-sale	552,463		552,463		637,058
Fair Value
Less than 12 Months	13,010		13,010		198,469
12 months or Longer	539,453		539,453		426,989
Total fair value	552,463		552,463		625,458
Unrealized Losses
Less than 12 Months	(479)		(479)		(13,482)
12 months or Longer	(107,505)		(107,505)		(80,192)
Total unrealized losses	(107,984)		(107,984)		(93,674)
Corporate debt securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	8,457		8,457		16,486
Gross Unrealized Gains	0		0		0
Gross Unrealized Losses	(206)		(206)		(355)
Investment securities available-for-sale	8,251		8,251		16,131
Fair Value
Less than 12 Months	0		0		16,132
12 months or Longer	8,251		8,251		0
Total fair value	8,251		8,251		16,132
Unrealized Losses
Less than 12 Months	0		0		(355)
12 months or Longer	(206)		(206)		0
Total unrealized losses	(206)		(206)		(355)
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	(18)		(18)		(21)
Investment securities available-for-sale	582		582		579
Fair Value
Less than 12 Months	0		0		484
12 months or Longer	582		582		95
Total fair value	582		582		579
Unrealized Losses
Less than 12 Months	0		0		(16)
12 months or Longer	(18)		(18)		(5)
Total unrealized losses	$ (18)		$ (18)		$ (21)

Loan and Lease Financings (Deta

Loan and Lease Financings (Details)	9 Months Ended
Loan and Lease Financings (Details)	Sep. 30, 2023 USD ($) class item	Dec. 31, 2022 USD ($)
Receivables [Abstract]
Number of methods to assess credit risk \| item	2
Loan and Lease Financings
Number of methods to assess credit risk \| item	2
Number of domestic aircraft loan pools \| class	2
Amortized cost of loans and leases	$ 6,353,648,000	$ 6,011,162,000
Commercial and agricultural
Loan and Lease Financings
Financing receivable originated during current fiscal year	128,762,000	163,808,000
Financing receivable originated one year prior to current fiscal year	130,159,000	113,166,000
Financing receivable originated two years prior to current fiscal year	82,375,000	71,425,000
Financing receivable originated three years prior to current fiscal year	44,384,000	37,968,000
Financing receivable originated four years prior to current fiscal year	25,187,000	18,836,000
Financing receivable originated five years or more prior to current fiscal year	18,833,000	14,900,000
Revolving Loans	333,351,000	391,928,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	763,051,000	812,031,000
Current period gross charge-offs, financing receivable originated during current fiscal year	455,000
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	411,000
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	17,000
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	4,000
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	0
Current period gross charge-offs, revolving financing receivable	1,946,000
Current period gross charge-offs, revolving financing receivable converted to term loan	0
Current period gross charge-offs	$ 2,833,000
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	$ 129,390,000	109,393,000
Financing receivable originated one year prior to current fiscal year	24,436,000	113,276,000
Financing receivable originated two years prior to current fiscal year	89,699,000	36,751,000
Financing receivable originated three years prior to current fiscal year	31,829,000	78,330,000
Financing receivable originated four years prior to current fiscal year	62,523,000	19,219,000
Financing receivable originated five years or more prior to current fiscal year	27,072,000	24,194,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	364,949,000	381,163,000
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	0
Current period gross charge-offs, revolving financing receivable	0
Current period gross charge-offs, revolving financing receivable converted to term loan	0
Current period gross charge-offs	0
Auto and light truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	472,866,000	527,371,000
Financing receivable originated one year prior to current fiscal year	293,417,000	158,874,000
Financing receivable originated two years prior to current fiscal year	76,408,000	67,899,000
Financing receivable originated three years prior to current fiscal year	33,136,000	35,811,000
Financing receivable originated four years prior to current fiscal year	17,858,000	12,738,000
Financing receivable originated five years or more prior to current fiscal year	7,799,000	5,424,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	901,484,000	808,117,000
Current period gross charge-offs, financing receivable originated during current fiscal year	0
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	140,000
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	75,000
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	4,000
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	19,000
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	63,000
Current period gross charge-offs, revolving financing receivable	0
Current period gross charge-offs, revolving financing receivable converted to term loan	0
Current period gross charge-offs	$ 301,000
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	$ 86,301,000	158,296,000
Financing receivable originated one year prior to current fiscal year	132,020,000	66,533,000
Financing receivable originated two years prior to current fiscal year	50,345,000	43,711,000
Financing receivable originated three years prior to current fiscal year	28,630,000	31,980,000
Financing receivable originated four years prior to current fiscal year	20,275,000	10,053,000
Financing receivable originated five years or more prior to current fiscal year	5,631,000	3,289,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	323,202,000	313,862,000
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	0
Current period gross charge-offs, revolving financing receivable	0
Current period gross charge-offs, revolving financing receivable converted to term loan	0
Current period gross charge-offs	$ 0
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	$ 170,443,000	451,443,000
Financing receivable originated one year prior to current fiscal year	399,547,000	277,979,000
Financing receivable originated two years prior to current fiscal year	221,330,000	219,851,000
Financing receivable originated three years prior to current fiscal year	184,556,000	57,379,000
Financing receivable originated four years prior to current fiscal year	49,474,000	31,085,000
Financing receivable originated five years or more prior to current fiscal year	48,455,000	36,298,000
Revolving Loans	5,776,000	3,687,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	1,079,581,000	1,077,722,000
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	0
Current period gross charge-offs, revolving financing receivable	0
Current period gross charge-offs, revolving financing receivable converted to term loan	0
Current period gross charge-offs	$ 0
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	$ 375,331,000	496,563,000
Financing receivable originated one year prior to current fiscal year	388,834,000	221,106,000
Financing receivable originated two years prior to current fiscal year	150,459,000	108,892,000
Financing receivable originated three years prior to current fiscal year	75,490,000	61,082,000
Financing receivable originated four years prior to current fiscal year	36,527,000	18,147,000
Financing receivable originated five years or more prior to current fiscal year	10,107,000	4,625,000
Revolving Loans	22,795,000	23,893,000
Revolving Loans Converted to Term	2,554,000	4,195,000
Amortized cost of loans and leases	1,062,097,000	938,503,000
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	44,000
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	1,000
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	0
Current period gross charge-offs, revolving financing receivable	0
Current period gross charge-offs, revolving financing receivable converted to term loan	0
Current period gross charge-offs	45,000
Commercial real estate
Loan and Lease Financings
Financing receivable originated during current fiscal year	252,711,000	273,058,000
Financing receivable originated one year prior to current fiscal year	254,868,000	165,889,000
Financing receivable originated two years prior to current fiscal year	155,600,000	129,509,000
Financing receivable originated three years prior to current fiscal year	114,933,000	103,259,000
Financing receivable originated four years prior to current fiscal year	94,794,000	102,318,000
Financing receivable originated five years or more prior to current fiscal year	215,001,000	169,461,000
Revolving Loans	292,000	251,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	1,088,199,000	943,745,000
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	39,000
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	179,000
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	0
Current period gross charge-offs, revolving financing receivable	0
Current period gross charge-offs, revolving financing receivable converted to term loan	0
Current period gross charge-offs	218,000
Residential real estate and home equity
Loan and Lease Financings
Financing receivable originated during current fiscal year	67,545,000	115,154,000
Financing receivable originated one year prior to current fiscal year	112,154,000	100,821,000
Financing receivable originated two years prior to current fiscal year	92,825,000	97,898,000
Financing receivable originated three years prior to current fiscal year	89,539,000	34,498,000
Financing receivable originated four years prior to current fiscal year	31,808,000	6,864,000
Financing receivable originated five years or more prior to current fiscal year	76,541,000	82,378,000
Revolving Loans	151,906,000	142,904,000
Revolving Loans Converted to Term	5,197,000	4,220,000
Amortized cost of loans and leases	627,515,000	584,737,000
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	0
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	54,000
Current period gross charge-offs, revolving financing receivable	1,000
Current period gross charge-offs, revolving financing receivable converted to term loan	0
Current period gross charge-offs	55,000
Consumer
Loan and Lease Financings
Financing receivable originated during current fiscal year	43,514,000	74,406,000
Financing receivable originated one year prior to current fiscal year	53,953,000	34,684,000
Financing receivable originated two years prior to current fiscal year	22,825,000	12,973,000
Financing receivable originated three years prior to current fiscal year	7,601,000	7,428,000
Financing receivable originated four years prior to current fiscal year	3,483,000	2,989,000
Financing receivable originated five years or more prior to current fiscal year	1,353,000	704,000
Revolving Loans	10,841,000	18,098,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	143,570,000	151,282,000
Current period gross charge-offs, financing receivable originated during current fiscal year	353,000
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	374,000
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	90,000
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	26,000
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	13,000
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	3,000
Current period gross charge-offs, revolving financing receivable	20,000
Current period gross charge-offs, revolving financing receivable converted to term loan	0
Current period gross charge-offs	879,000
Credit Quality Grades 1-6 \| Commercial and agricultural
Loan and Lease Financings
Financing receivable originated during current fiscal year	124,559,000	159,317,000
Financing receivable originated one year prior to current fiscal year	127,855,000	107,232,000
Financing receivable originated two years prior to current fiscal year	76,034,000	71,365,000
Financing receivable originated three years prior to current fiscal year	43,890,000	35,874,000
Financing receivable originated four years prior to current fiscal year	24,025,000	17,192,000
Financing receivable originated five years or more prior to current fiscal year	18,156,000	13,860,000
Revolving Loans	316,644,000	370,553,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	731,163,000	775,393,000
Credit Quality Grades 1-6 \| Solar
Loan and Lease Financings
Financing receivable originated during current fiscal year	129,390,000	109,393,000
Financing receivable originated one year prior to current fiscal year	24,436,000	113,276,000
Financing receivable originated two years prior to current fiscal year	89,699,000	35,660,000
Financing receivable originated three years prior to current fiscal year	30,775,000	72,652,000
Financing receivable originated four years prior to current fiscal year	57,010,000	18,518,000
Financing receivable originated five years or more prior to current fiscal year	26,392,000	20,654,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	357,702,000	370,153,000
Credit Quality Grades 1-6 \| Auto and light truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	471,833,000	521,399,000
Financing receivable originated one year prior to current fiscal year	290,946,000	155,508,000
Financing receivable originated two years prior to current fiscal year	75,619,000	62,063,000
Financing receivable originated three years prior to current fiscal year	30,020,000	32,975,000
Financing receivable originated four years prior to current fiscal year	17,041,000	10,946,000
Financing receivable originated five years or more prior to current fiscal year	6,856,000	3,476,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	892,315,000	786,367,000
Credit Quality Grades 1-6 \| Medium and heavy duty truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	86,301,000	158,296,000
Financing receivable originated one year prior to current fiscal year	132,020,000	66,533,000
Financing receivable originated two years prior to current fiscal year	50,345,000	43,711,000
Financing receivable originated three years prior to current fiscal year	28,630,000	31,980,000
Financing receivable originated four years prior to current fiscal year	20,275,000	10,053,000
Financing receivable originated five years or more prior to current fiscal year	5,631,000	3,274,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	323,202,000	313,847,000
Credit Quality Grades 1-6 \| Aircraft
Loan and Lease Financings
Financing receivable originated during current fiscal year	166,133,000	438,481,000
Financing receivable originated one year prior to current fiscal year	389,870,000	273,726,000
Financing receivable originated two years prior to current fiscal year	214,169,000	213,661,000
Financing receivable originated three years prior to current fiscal year	179,737,000	57,379,000
Financing receivable originated four years prior to current fiscal year	49,474,000	31,085,000
Financing receivable originated five years or more prior to current fiscal year	41,619,000	35,012,000
Revolving Loans	5,776,000	3,687,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	1,046,778,000	1,053,031,000
Credit Quality Grades 1-6 \| Construction equipment
Loan and Lease Financings
Financing receivable originated during current fiscal year	370,642,000	475,854,000
Financing receivable originated one year prior to current fiscal year	372,029,000	213,349,000
Financing receivable originated two years prior to current fiscal year	149,279,000	106,409,000
Financing receivable originated three years prior to current fiscal year	74,922,000	59,204,000
Financing receivable originated four years prior to current fiscal year	36,373,000	17,834,000
Financing receivable originated five years or more prior to current fiscal year	10,066,000	4,593,000
Revolving Loans	22,795,000	23,310,000
Revolving Loans Converted to Term	2,418,000	2,754,000
Amortized cost of loans and leases	1,038,524,000	903,307,000
Credit Quality Grades 1-6 \| Commercial real estate
Loan and Lease Financings
Financing receivable originated during current fiscal year	252,567,000	271,526,000
Financing receivable originated one year prior to current fiscal year	252,121,000	164,173,000
Financing receivable originated two years prior to current fiscal year	154,744,000	121,685,000
Financing receivable originated three years prior to current fiscal year	109,181,000	97,470,000
Financing receivable originated four years prior to current fiscal year	90,192,000	102,271,000
Financing receivable originated five years or more prior to current fiscal year	202,871,000	168,391,000
Revolving Loans	292,000	251,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	1,061,968,000	925,767,000
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	4,203,000	4,491,000
Financing receivable originated one year prior to current fiscal year	2,304,000	5,934,000
Financing receivable originated two years prior to current fiscal year	6,341,000	60,000
Financing receivable originated three years prior to current fiscal year	494,000	2,094,000
Financing receivable originated four years prior to current fiscal year	1,162,000	1,644,000
Financing receivable originated five years or more prior to current fiscal year	677,000	1,040,000
Revolving Loans	16,707,000	21,375,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	31,888,000	36,638,000
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	0
Financing receivable originated two years prior to current fiscal year	0	1,091,000
Financing receivable originated three years prior to current fiscal year	1,054,000	5,678,000
Financing receivable originated four years prior to current fiscal year	5,513,000	701,000
Financing receivable originated five years or more prior to current fiscal year	680,000	3,540,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	7,247,000	11,010,000
Credit Quality Grades 7-12 \| Auto and light truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	1,033,000	5,972,000
Financing receivable originated one year prior to current fiscal year	2,471,000	3,366,000
Financing receivable originated two years prior to current fiscal year	789,000	5,836,000
Financing receivable originated three years prior to current fiscal year	3,116,000	2,836,000
Financing receivable originated four years prior to current fiscal year	817,000	1,792,000
Financing receivable originated five years or more prior to current fiscal year	943,000	1,948,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	9,169,000	21,750,000
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	0	15,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	0	15,000
Credit Quality Grades 7-12 \| Aircraft
Loan and Lease Financings
Financing receivable originated during current fiscal year	4,310,000	12,962,000
Financing receivable originated one year prior to current fiscal year	9,677,000	4,253,000
Financing receivable originated two years prior to current fiscal year	7,161,000	6,190,000
Financing receivable originated three years prior to current fiscal year	4,819,000	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	6,836,000	1,286,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	32,803,000	24,691,000
Credit Quality Grades 7-12 \| Construction equipment
Loan and Lease Financings
Financing receivable originated during current fiscal year	4,689,000	20,709,000
Financing receivable originated one year prior to current fiscal year	16,805,000	7,757,000
Financing receivable originated two years prior to current fiscal year	1,180,000	2,483,000
Financing receivable originated three years prior to current fiscal year	568,000	1,878,000
Financing receivable originated four years prior to current fiscal year	154,000	313,000
Financing receivable originated five years or more prior to current fiscal year	41,000	32,000
Revolving Loans	0	583,000
Revolving Loans Converted to Term	136,000	1,441,000
Amortized cost of loans and leases	23,573,000	35,196,000
Credit Quality Grades 7-12 \| Commercial real estate
Loan and Lease Financings
Financing receivable originated during current fiscal year	144,000	1,532,000
Financing receivable originated one year prior to current fiscal year	2,747,000	1,716,000
Financing receivable originated two years prior to current fiscal year	856,000	7,824,000
Financing receivable originated three years prior to current fiscal year	5,752,000	5,789,000
Financing receivable originated four years prior to current fiscal year	4,602,000	47,000
Financing receivable originated five years or more prior to current fiscal year	12,130,000	1,070,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	26,231,000	17,978,000
Performing \| Residential real estate and home equity
Loan and Lease Financings
Financing receivable originated during current fiscal year	67,545,000	115,154,000
Financing receivable originated one year prior to current fiscal year	112,070,000	100,690,000
Financing receivable originated two years prior to current fiscal year	92,751,000	97,205,000
Financing receivable originated three years prior to current fiscal year	89,539,000	34,498,000
Financing receivable originated four years prior to current fiscal year	31,394,000	6,864,000
Financing receivable originated five years or more prior to current fiscal year	75,909,000	81,653,000
Revolving Loans	151,550,000	142,724,000
Revolving Loans Converted to Term	5,121,000	4,115,000
Amortized cost of loans and leases	625,879,000	582,903,000
Performing \| Consumer
Loan and Lease Financings
Financing receivable originated during current fiscal year	43,514,000	74,258,000
Financing receivable originated one year prior to current fiscal year	53,780,000	34,619,000
Financing receivable originated two years prior to current fiscal year	22,705,000	12,924,000
Financing receivable originated three years prior to current fiscal year	7,552,000	7,375,000
Financing receivable originated four years prior to current fiscal year	3,441,000	2,977,000
Financing receivable originated five years or more prior to current fiscal year	1,346,000	692,000
Revolving Loans	10,841,000	18,098,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	$ 143,179,000	150,943,000
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	84,000	131,000
Financing receivable originated two years prior to current fiscal year	74,000	693,000
Financing receivable originated three years prior to current fiscal year	0	0
Financing receivable originated four years prior to current fiscal year	414,000	0
Financing receivable originated five years or more prior to current fiscal year	632,000	725,000
Revolving Loans	356,000	180,000
Revolving Loans Converted to Term	76,000	105,000
Amortized cost of loans and leases	1,636,000	1,834,000
Nonperforming \| Consumer
Loan and Lease Financings
Financing receivable originated during current fiscal year	0	148,000
Financing receivable originated one year prior to current fiscal year	173,000	65,000
Financing receivable originated two years prior to current fiscal year	120,000	49,000
Financing receivable originated three years prior to current fiscal year	49,000	53,000
Financing receivable originated four years prior to current fiscal year	42,000	12,000
Financing receivable originated five years or more prior to current fiscal year	7,000	12,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	$ 391,000	$ 339,000

Loan and Lease Financings (De_2

Loan and Lease Financings (Details 2) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
90 Days or More Past Due and Accruing	$ 154	$ 54
Total Accruing Loans	6,337,031	5,984,742
Nonaccrual	16,617	26,420
Total loans and leases	6,353,648	6,011,162
Accrued interest receivable on loans and leases	22,810	18,750
Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	6,330,629	5,980,206
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	5,330	2,929
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	918	1,553
Commercial and agricultural
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	756,797	811,167
Nonaccrual	6,254	864
Total loans and leases	763,051	812,031
Commercial and agricultural \| Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	756,225	810,223
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	572	944
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	0	0
Solar
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	364,949	381,163
Nonaccrual	0	0
Total loans and leases	364,949	381,163
Solar \| Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	364,949	381,163
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	896,425	793,964
Nonaccrual	5,059	14,153
Total loans and leases	901,484	808,117
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	895,298	793,610
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	1,115	353
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	12	1
Medium and heavy duty truck
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	323,202	313,847
Nonaccrual	0	15
Total loans and leases	323,202	313,862
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	323,202	313,845
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	2
Aircraft
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	1,079,581	1,077,151
Nonaccrual	0	571
Total loans and leases	1,079,581	1,077,722
Aircraft \| Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	1,079,135	1,075,865
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	223
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	446	1,063
Construction equipment
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	1,061,482	933,034
Nonaccrual	615	5,469
Total loans and leases	1,062,097	938,503
Construction equipment \| Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	1,059,212	932,603
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	2,270	431
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	0	0
Commercial real estate
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	1,085,383	940,516
Nonaccrual	2,816	3,229
Total loans and leases	1,088,199	943,745
Commercial real estate \| Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	1,085,383	940,516
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	111	49
Total Accruing Loans	625,990	582,952
Nonaccrual	1,525	1,785
Total loans and leases	627,515	584,737
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	624,675	582,053
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	811	562
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	393	288
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	43	5
Total Accruing Loans	143,222	150,948
Nonaccrual	348	334
Total loans and leases	143,570	151,282
Consumer \| Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	142,550	150,328
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	562	416
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	$ 67	$ 199

Loan and Lease Financings (De_3

Loan and Lease Financings (Details 3) $ in Thousands	3 Months Ended		9 Months Ended
Loan and Lease Financings (Details 3) $ in Thousands	Sep. 30, 2023 USD ($)	Sep. 30, 2022 item	Sep. 30, 2023 USD ($) item	Sep. 30, 2022 item	Dec. 31, 2022 USD ($)
Loan modifications to borrowers experiencing financial difficulties
Percent of Total Segment of Financing Receivable	0.01%		0.12%
Commitments to lend additional amounts	$ 190		$ 190
Weighted Average Interest Rate Reduction			3%
Weighted Average Term Extension Modification (in months)			4 months
Weighted Average Payment Delay (in months)	6 months		6 months
Combination Weighted Average Payment Delay and Term Extension (in months)	13 months		44 months
Loan modifications to borrowers experiencing financial difficulties subsequent default \| item			1
Number of Modifications \| item		0		0
Number of Defaults \| item		0		1
Loans and leases classified as troubled debt restructuring					$ 3,640
Troubled debt restructured loans and leases which had payment defaults within twelve months following modification
Default threshold			90 days
Performing
Loan modifications to borrowers experiencing financial difficulties
Loans and leases classified as troubled debt restructuring					0
Nonperforming
Loan modifications to borrowers experiencing financial difficulties
Loans and leases classified as troubled debt restructuring					$ 3,640
Combination Payment Delay and Term Extension
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	$ 500		$ 1,312
Payment Delay
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	196		3,656
Term Extension
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	0		1,934
Interest Rate Reduction
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	0		451
Interest Rate Below Market Reduction
Loan modifications to borrowers experiencing financial difficulties
Number of Modifications \| item		0		0
Current
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	696		4,189
30 to 59 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	0		0
60 to 89 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	0		0
90 Days or More Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	0		3,164
Total Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	$ 0		$ 3,164
Commercial and agricultural
Loan modifications to borrowers experiencing financial difficulties
Percent of Total Segment of Financing Receivable	0.09%		0.63%
Weighted Average Interest Rate Reduction			0%
Weighted Average Term Extension Modification (in months)			3 months
Weighted Average Payment Delay (in months)	6 months		6 months
Combination Weighted Average Payment Delay and Term Extension (in months)	13 months		44 months
Commercial and agricultural \| Combination Payment Delay and Term Extension
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	$ 500		$ 1,312
Commercial and agricultural \| Payment Delay
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	196		3,360
Commercial and agricultural \| Term Extension
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	0		125
Commercial and agricultural \| Interest Rate Reduction
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	0		0
Commercial and agricultural \| Current
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	696		1,633
Commercial and agricultural \| 30 to 59 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	0		0
Commercial and agricultural \| 60 to 89 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	0		0
Commercial and agricultural \| 90 Days or More Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	0		3,164
Commercial and agricultural \| Total Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	$ 0		$ 3,164
Construction equipment
Loan modifications to borrowers experiencing financial difficulties
Percent of Total Segment of Financing Receivable			0.17%
Weighted Average Interest Rate Reduction			0%
Weighted Average Term Extension Modification (in months)			5 months
Weighted Average Payment Delay (in months)			0 months
Combination Weighted Average Payment Delay and Term Extension (in months)			0 months
Construction equipment \| Combination Payment Delay and Term Extension
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			$ 0
Construction equipment \| Payment Delay
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			0
Construction equipment \| Term Extension
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			1,809
Construction equipment \| Interest Rate Reduction
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			0
Construction equipment \| Current
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			1,809
Construction equipment \| 30 to 59 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			0
Construction equipment \| 60 to 89 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			0
Construction equipment \| 90 Days or More Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			0
Construction equipment \| Total Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			$ 0
Commercial real estate
Loan modifications to borrowers experiencing financial difficulties
Percent of Total Segment of Financing Receivable			0.07%
Weighted Average Interest Rate Reduction			3%
Weighted Average Term Extension Modification (in months)			0 months
Weighted Average Payment Delay (in months)			3 months
Combination Weighted Average Payment Delay and Term Extension (in months)			0 months
Commercial real estate \| Combination Payment Delay and Term Extension
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			$ 0
Commercial real estate \| Payment Delay
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			296
Commercial real estate \| Term Extension
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			0
Commercial real estate \| Interest Rate Reduction
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			451
Commercial real estate \| Current
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			747
Commercial real estate \| 30 to 59 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			0
Commercial real estate \| 60 to 89 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			0
Commercial real estate \| 90 Days or More Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			0
Commercial real estate \| Total Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			$ 0

Allowance for Credit Losses (De

Allowance for Credit Losses (Details) $ in Thousands	3 Months Ended		9 Months Ended
Allowance for Credit Losses (Details) $ in Thousands	Sep. 30, 2023 USD ($) item	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) item	Sep. 30, 2022 USD ($)
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	$ 143,542	$ 132,865	$ 139,268	$ 127,492
Charge-offs	2,778	720	4,331	1,171
Recoveries	2,451	424	5,182	1,512
Net charge-offs (recoveries)	327	296	(851)	(341)
Provision (recovery of provision)	859	3,167	3,955	7,903
Balance at the end of the period	144,074	135,736	144,074	135,736
Commercial and agricultural
Changes in allowance for loan and lease losses
Balance at the beginning of the period	16,637	16,110	14,635	15,409
Charge-offs	2,261	414	2,833	453
Recoveries	20	39	209	46
Net charge-offs (recoveries)	2,241	375	2,624	407
Provision (recovery of provision)	573	412	2,958	1,145
Balance at the end of the period	14,969	16,147	14,969	16,147
Solar
Changes in allowance for loan and lease losses
Balance at the beginning of the period	6,308	6,652	7,217	6,585
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Net charge-offs (recoveries)	0	0	0	0
Provision (recovery of provision)	(203)	142	(1,112)	209
Balance at the end of the period	6,105	6,794	6,105	6,794
Auto and light truck
Changes in allowance for loan and lease losses
Balance at the beginning of the period	17,173	19,057	18,634	19,624
Charge-offs	189	66	301	98
Recoveries	1,825	91	3,414	212
Net charge-offs (recoveries)	(1,636)	(25)	(3,113)	(114)
Provision (recovery of provision)	(2,471)	(85)	(5,409)	(741)
Balance at the end of the period	16,338	18,997	16,338	18,997
Medium and heavy duty truck
Changes in allowance for loan and lease losses
Balance at the beginning of the period	7,556	6,709	7,566	6,015
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Net charge-offs (recoveries)	0	0	0	0
Provision (recovery of provision)	155	304	145	998
Balance at the end of the period	7,711	7,013	7,711	7,013
Aircraft
Changes in allowance for loan and lease losses
Balance at the beginning of the period	40,571	36,987	41,093	33,628
Charge-offs	0	0	0	0
Recoveries	243	176	746	653
Net charge-offs (recoveries)	(243)	(176)	(746)	(653)
Provision (recovery of provision)	(354)	132	(1,379)	3,014
Balance at the end of the period	40,460	37,295	40,460	37,295
Construction equipment
Changes in allowance for loan and lease losses
Balance at the beginning of the period	26,105	21,171	24,039	19,673
Charge-offs	0	0	45	48
Recoveries	284	11	291	11
Net charge-offs (recoveries)	(284)	(11)	(246)	37
Provision (recovery of provision)	506	1,667	2,610	3,213
Balance at the end of the period	26,895	22,849	26,895	22,849
Commercial real estate
Changes in allowance for loan and lease losses
Balance at the beginning of the period	20,356	18,416	17,431	19,691
Charge-offs	0	0	218	0
Recoveries	0	17	6	43
Net charge-offs (recoveries)	0	(17)	212	(43)
Provision (recovery of provision)	2,288	57	5,425	(1,244)
Balance at the end of the period	22,644	18,490	22,644	18,490
Residential real estate and home equity
Changes in allowance for loan and lease losses
Balance at the beginning of the period	6,767	5,779	6,478	5,084
Charge-offs	45	17	55	27
Recoveries	1	1	327	129
Net charge-offs (recoveries)	44	16	(272)	(102)
Provision (recovery of provision)	168	306	141	883
Balance at the end of the period	6,891	6,069	6,891	6,069
Consumer
Changes in allowance for loan and lease losses
Balance at the beginning of the period	2,069	1,984	2,175	1,783
Charge-offs	283	223	879	545
Recoveries	78	89	189	418
Net charge-offs (recoveries)	205	134	690	127
Provision (recovery of provision)	197	232	576	426
Balance at the end of the period	$ 2,061	$ 2,082	$ 2,061	$ 2,082

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, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Allowance for credit losses
Balance, beginning of period	$ 7,370	$ 5,497	$ 5,616	$ 4,196
Provision (recovery of provision)	649	(281)	2,403	1,020
Balance, end of period	$ 8,019	$ 5,216	$ 8,019	$ 5,216

Lease Investments (Details)

Lease Investments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Lease Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Interest income on lease receivable	$ 3,584	$ 2,402	$ 9,939	$ 6,112
Income related to lease payments	2,101	2,761	6,930	9,718
Depreciation - leased equipment	1,672	2,233	5,570	7,912
Income from reimbursements for personal property tax payments on operating leased equipment	0	80	230	310
Expense for payments of personal property taxes on operating leased equipment	$ 0	$ 80	$ 230	$ 310

Mortgage Servicing Rights (Deta

Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Residential mortgage loans
Mortgage Servicing Rights
Unpaid principal balance	$ 815,270	$ 848,960

Mortgage Servicing Rights (De_2

Mortgage Servicing Rights (Details 2) - Residential mortgage loans - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Changes in mortgage servicing assets
Balance at the beginning of the period	$ 3,874	$ 4,443	$ 4,137	$ 4,671
Additions	119	152	291	660
Amortization	(217)	(297)	(652)	(1,033)
Carrying value before valuation allowance at end of period	3,776	4,298	3,776	4,298
Changes in valuation allowance
Balance at the beginning of the period	0	0	0	0
Impairment recoveries	0	0	0	0
Balance at the end of the period	0	0	0	0
Net carrying value of mortgage servicing rights at end of period	3,776	4,298	3,776	4,298
Fair value of mortgage servicing rights at end of period	8,029	7,493	8,029	7,493
Fair value of mortgage servicing rights exceeding the carrying value	4,250	3,200	4,250	3,200
Mortgage loan contractual servicing fees, including late fees and ancillary income	$ 630	$ 690	$ 1,920	$ 2,130

Commitments and Financial Ins_3

Commitments and Financial Instruments with Off-Balance-Sheet Risk (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Loan commitments to extend credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet instruments	$ 1,450,666	$ 1,234,866
Standby letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet instruments	$ 18,111	18,055
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	$ 2,724	$ 2,368
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, 2023	Dec. 31, 2022
Non-hedging derivative financial instruments
Derivative Financial Instruments
Notional or contractual amount	$ 961,000	$ 887,988
Asset derivatives, Fair value	27,200	24,929
Liability derivatives, Fair value	27,531	25,307
Interest rate swap contracts
Derivative Financial Instruments
Asset derivatives, Fair value	27,021	24,838
Interest rate swap contracts \| Non-hedging derivative financial instruments
Derivative Financial Instruments
Notional or contractual amount	950,362	881,600
Asset derivatives, Fair value	27,021	24,838
Liability derivatives, Fair value	27,531	25,307
Loan commitments \| Non-hedging derivative financial instruments
Derivative Financial Instruments
Notional or contractual amount	4,388	2,638
Asset derivatives, Fair value	143	67
Liability derivatives, Fair value	0	0
Forward contracts - mortgage loan \| Non-hedging derivative financial instruments
Derivative Financial Instruments
Notional or contractual amount	6,250	3,750
Asset derivatives, Fair value	36	24
Liability derivatives, Fair value	$ 0	$ 0

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, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative Financial Instruments
Gain (loss)	$ 427	$ (283)	$ 813	$ (317)
Interest rate swap contracts \| Other expense
Derivative Financial Instruments
Gain (loss)	(42)	(252)	(41)	(69)
Interest rate swap contracts \| Other income
Derivative Financial Instruments
Gain (loss)	475	83	766	83
Loan commitments
Derivative Financial Instruments
Gain (loss)	(14)	(197)	76	(424)
Forward contracts - mortgage loan
Derivative Financial Instruments
Gain (loss)	$ 8	$ 83	$ 12	$ 93

Derivative Financial Instrume_5

Derivative Financial Instruments (Details 3) - Interest rate swaps - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Offsetting Assets
Asset derivatives, Fair value	$ 27,021	$ 24,838
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Assets Presented in the Statement of Financial Position	27,021	24,838
Derivative Asset, Fair Value, Amount Offset Against Collateral [Abstract]
Financial instruments	0	0
Cash collateral received	28,555	25,295
Net Amount	$ (1,534)	$ (457)

Derivative Financial Instrume_6

Derivative Financial Instruments (Details 4) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Offsetting of financial liabilities and derivative liabilities
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	$ 75,866	$ 166,739
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Liabilities Presented in the Statement of Financial Position	75,866	166,739
Gross amounts Not Offset in the Statement of Financial Position
Financial Instruments	48,335	141,432
Cash Collateral Pledged	0	0
Net Amount	27,531	25,307
Interest rate swaps
Offsetting of financial liabilities and derivative liabilities
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	27,531	25,307
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Liabilities Presented in the Statement of Financial Position	27,531	25,307
Derivative, Collateral, Right to Reclaim Securities	0	0
Gross amounts Not Offset in the Statement of Financial Position
Cash Collateral Pledged	0	0
Net Amount	27,531	25,307
Repurchase agreements
Offsetting of financial liabilities and derivative liabilities
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	48,335	141,432
Net Amounts of Liabilities Presented in the Statement of Financial Position	48,335	141,432
Gross amounts Not Offset in the Statement of Financial Position
Financial Instruments	$ 48,335	$ 141,432

Derivative Financial Instrume_7

Derivative Financial Instruments (Details 5) - U.S. Treasury and Federal agencies securities - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Overnight and Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Repurchase agreements	$ 46,990	$ 138,080
Up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Repurchase agreements	$ 1,350	$ 3,350

Variable Interest Entities (Det

Variable Interest Entities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Subordinated Borrowing [Line Items]
Federal tax credits recognized in tax expense	$ 660	$ 520	$ 1,990	$ 1,550
Investment tax credits	570	$ 0	25,020	$ 9,480
Investment carrying amount	8,525,058		8,525,058		$ 8,339,416
Unfunded capital and other commitments	7,542,061		7,542,061		7,415,650
Maximum exposure to loss, unconsolidated VIEs	65,643		65,643		45,020
Variable Interest Entity [Line Items]
Investment carrying amount	8,525,058		8,525,058		8,339,416
Variable interest entity, primary beneficiary
Subordinated Borrowing [Line Items]
Investment carrying amount	65,180		65,180		66,260
Unfunded capital and other commitments	0		0		0
Variable Interest Entity [Line Items]
Investment carrying amount	65,180		65,180		66,260
Variable interest entity, not primary beneficiary
Subordinated Borrowing [Line Items]
Investment carrying amount	84,818		84,818		70,887
Unfunded capital and other commitments	76,505		76,505		64,520
Variable Interest Entity [Line Items]
Investment carrying amount	$ 84,818		$ 84,818		$ 70,887

Variable Interest Entities (D_2

Variable Interest Entities (Details 2) $ in Thousands	9 Months Ended
Variable Interest Entities (Details 2) $ in Thousands	Sep. 30, 2023 USD ($) trust	Dec. 31, 2022 USD ($)
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)	7.15%
Maturity date of subordinated notes	Sep. 15, 2037
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| 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, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Outstanding stock options (in shares)	0	0	0	0
Distributed earnings allocated to common stock	$ 7,900	$ 7,890	$ 23,694	$ 23,230
Undistributed earnings allocated to common stock	24,707	24,571	71,894	65,489
Net earnings allocated to common stock	32,607	32,461	95,588	88,719
Net earnings allocated to participating securities	332	276	910	722
Net income available to common shareholders	$ 32,939	$ 32,737	$ 96,498	$ 89,441
Weighted average shares outstanding for basic earnings per common share	24,660,508	24,656,736	24,677,914	24,697,106
Dilutive effect of stock compensation (in shares)	0	0	0	0
Weighted average shares outstanding for diluted earnings per common share	24,660,508	24,656,736	24,677,914	24,697,106
Basic earnings per common share (in dollars per share)	$ 1.32	$ 1.32	$ 3.87	$ 3.59
Diluted earnings per common share (in dollars per share)	$ 1.32	$ 1.32	$ 3.87	$ 3.59

Stock Based Compensation (Detai

Stock Based Compensation (Details) $ in Thousands	9 Months Ended
Stock Based Compensation (Details) $ in Thousands	Sep. 30, 2023 USD ($) item shares	Sep. 30, 2022 USD ($) 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 \| $	$ 11,020
Weighted-average period over which unrecognized compensation cost is expected to be recognized	3 years 5 months 12 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, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Reclassifications out of accumulated other comprehensive income
Losses on investment securities available-for-sale	$ 0	$ 0	$ (44)	$ 0
Income tax expense	(9,727)	(9,698)	(28,640)	(26,295)
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	(44)	0
Income before income taxes	0	0	(44)	0
Income tax expense	0	0	10	0
Net income	$ 0	$ 0	$ (34)	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
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, 2023	Dec. 31, 2022
Fair value measurements
Fair value carrying amount		$ 3,118	$ 3,914
Mortgages held for sale reported at fair value
Fair value measurements
Fair value carrying amount		3,118	3,914
Aggregate unpaid principal		2,863	3,766
Excess of fair value carrying amount over (under) unpaid principal	[1]	$ 255	$ 148

[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, 2023	Dec. 31, 2022
Fair value measurements
Investment securities available-for-sale	$ 1,605,242	$ 1,775,128
Assets:
Mortgages held for sale	3,118	3,914
U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	946,962	998,598
U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	96,984	122,762
Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	552,463	637,058
Corporate debt securities
Fair value measurements
Investment securities available-for-sale	8,251	16,131
Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	582	579
Total
Fair value measurements
Investment securities available-for-sale	1,605,242	1,775,128
Assets:
Mortgages held for sale	3,118	3,914
Level 1
Fair value measurements
Investment securities available-for-sale	539,836	573,679
Assets:
Mortgages held for sale	0	0
Level 2
Fair value measurements
Investment securities available-for-sale	1,061,268	1,199,985
Assets:
Mortgages held for sale	3,118	3,914
Level 3
Fair value measurements
Investment securities available-for-sale	4,138	1,464
Assets:
Mortgages held for sale	0	0
Recurring basis \| Total
Fair value measurements
Investment securities available-for-sale	1,605,242	1,775,128
Assets:
Mortgages held for sale	3,118	3,914
Total	1,635,381	1,803,880
Liabilities:
Total	27,531	25,307
Recurring basis \| Total \| Interest rate swap contracts
Assets:
Accrued income and other assets	27,021	24,838
Liabilities:
Accrued expenses and other liabilities	27,531	25,307
Recurring basis \| Total \| U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	946,962	998,598
Recurring basis \| Total \| U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	96,984	122,762
Recurring basis \| Total \| Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	552,463	637,058
Recurring basis \| Total \| Corporate debt securities
Fair value measurements
Investment securities available-for-sale	8,251	16,131
Recurring basis \| Total \| Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	582	579
Recurring basis \| Level 1
Fair value measurements
Investment securities available-for-sale	539,836	573,679
Assets:
Mortgages held for sale	0	0
Total	539,836	573,679
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	539,836	573,679
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	1,061,268	1,199,985
Assets:
Mortgages held for sale	3,118	3,914
Total	1,091,407	1,228,737
Liabilities:
Total	27,531	25,307
Recurring basis \| Level 2 \| Interest rate swap contracts
Assets:
Accrued income and other assets	27,021	24,838
Liabilities:
Accrued expenses and other liabilities	27,531	25,307
Recurring basis \| Level 2 \| U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	407,126	424,919
Recurring basis \| Level 2 \| U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	92,846	121,298
Recurring basis \| Level 2 \| Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	552,463	637,058
Recurring basis \| Level 2 \| Corporate debt securities
Fair value measurements
Investment securities available-for-sale	8,251	16,131
Recurring basis \| Level 2 \| Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	582	579
Recurring basis \| Level 3
Fair value measurements
Investment securities available-for-sale	4,138	1,464
Assets:
Mortgages held for sale	0	0
Total	4,138	1,464
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	4,138	1,464
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, 2023	Sep. 30, 2022	Sep. 30, 2022
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	4,249	$ 4,515
Total gains or losses (realized/unrealized): included in earnings	0	0
Total gains or losses (realized/unrealized): included in other comprehensive income (loss)	(26)	(32)
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	$ 4,138	$ 4,398	$ 4,398

Fair Value Measurements (Deta_4

Fair Value Measurements (Details 4) $ in Thousands	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Valuation Methodology
Investment securities, available-for-sale	$ 1,605,242	$ 1,775,128
Level 3
Valuation Methodology
Investment securities, available-for-sale	4,138	1,464
Recurring \| Level 3
Valuation Methodology
Investment securities, available-for-sale	4,138	1,464
Recurring \| Level 3 \| Discounted cash flows \| Direct placement municipal securities
Valuation Methodology
Investment securities, available-for-sale	$ 4,138	$ 1,464
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)	0.0487	0.0022
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)	0.0682	0.0409
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)	0.0637	0.0349
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, 2023	Dec. 31, 2022
Impaired loans
Fair value measurements
Impairment charges	$ 2,250
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	0	$ 0
Assets measured at fair value	4,126	4,568
Total \| Mortgage servicing rights
Fair value measurements
Accrued income and other assets	3,776	4,137
Total \| Repossessions
Fair value measurements
Accrued income and other assets	233	327
Total \| Other real estate
Fair value measurements
Accrued income and other assets	117	104
Level 3
Fair value measurements
Impaired loans - collateral based	0	0
Assets measured at fair value	4,126	4,568
Level 3 \| Mortgage servicing rights
Fair value measurements
Accrued income and other assets	3,776	4,137
Level 3 \| Repossessions
Fair value measurements
Accrued income and other assets	233	327
Level 3 \| Other real estate
Fair value measurements
Accrued income and other assets	$ 117	$ 104

Fair Value Measurements (Deta_6

Fair Value Measurements (Details 6) - Non-recurring $ in Thousands	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Level 3
Valuation Methodology
Assets measured at fair value	$ 4,126	$ 4,568
Carrying Value \| Level 3 \| Collateral based measurements \| Impaired loans
Valuation Methodology
Assets measured at fair value	0	0
Carrying Value \| Level 3 \| Discounted cash flows \| Mortgage servicing rights
Valuation Methodology
Assets measured at fair value	3,776	4,137
Carrying Value \| Level 3 \| Appraisals trade publications and auction values \| Repossessions
Valuation Methodology
Assets measured at fair value	233	327
Carrying Value \| Level 3 \| Appraisals \| Other real estate
Valuation Methodology
Assets measured at fair value	117	104
Fair Value
Valuation Methodology
Assets measured at fair value	4,126	4,568
Fair Value \| Level 3 \| Collateral based measurements \| Impaired loans
Valuation Methodology
Assets measured at fair value	0	0
Fair Value \| Level 3 \| Discounted cash flows \| Mortgage servicing rights
Valuation Methodology
Assets measured at fair value	8,029	8,007
Fair Value \| Level 3 \| Appraisals trade publications and auction values \| Repossessions
Valuation Methodology
Assets measured at fair value	234	370
Fair Value \| Level 3 \| Appraisals \| Other real estate
Valuation Methodology
Assets measured at fair value	$ 117	$ 104
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	0
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	0
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	0
Constant prepayment rate (CPR) \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Minimum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.054	0.076
Constant prepayment rate (CPR) \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Maximum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.146	0.096
Constant prepayment rate (CPR) \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Weighted Average
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.078	0.082
Discount rate \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Minimum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.118	0.114
Discount rate \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Maximum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.138	0.142
Discount rate \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Weighted Average
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.119	0.115
Discount for lack of marketability \| Level 3 \| Appraisals trade publications and auction values \| Repossessions \| Minimum
Unobservable Inputs
Repossessions unobservable inputs (as a percent)	0	0.02
Discount for lack of marketability \| Level 3 \| Appraisals trade publications and auction values \| Repossessions \| Maximum
Unobservable Inputs
Repossessions unobservable inputs (as a percent)	0.04	0.09
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	0.07
Discount for lack of marketability \| Level 3 \| Appraisals \| Other real estate \| Minimum
Unobservable Inputs
Other Real Estate Owned, Measurement Input	0	0
Discount for lack of marketability \| Level 3 \| Appraisals \| Other real estate \| Maximum
Unobservable Inputs
Other Real Estate Owned, Measurement Input	0	0
Discount for lack of marketability \| Level 3 \| Appraisals \| Other real estate \| Weighted Average
Unobservable Inputs
Other Real Estate Owned, Measurement Input	0	0

Fair Value Measurements (Deta_7

Fair Value Measurements (Details 7) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Assets:
Cash and due from banks	$ 75,729	$ 84,703
Federal funds sold and interest bearing deposits with other banks	35,406	38,094
Investment securities available-for-sale	1,605,242	1,775,128
Other investments	25,075	25,293
Mortgages held for sale	3,118	3,914
Loans and leases, net of allowance for loan and lease losses	6,209,574	5,871,894
Liabilities:
Long-term debt and mandatorily redeemable securities	46,533	46,555
Subordinated notes	58,764	58,764
Carrying or Contract Value
Assets:
Cash and due from banks	75,729	84,703
Federal funds sold and interest bearing deposits with other banks	35,406	38,094
Investment securities available-for-sale	1,605,242	1,775,128
Other investments	25,075	25,293
Mortgages held for sale	3,118	3,914
Loans and leases, net of allowance for loan and lease losses	6,209,574	5,871,894
Mortgage servicing rights	3,776	4,137
Accrued interest receivable	28,120	24,747
Interest rate swaps	27,021	24,838
Liabilities:
Deposits	6,967,492	6,928,265
Short-term borrowings	272,092	215,529
Long-term debt and mandatorily redeemable securities	46,533	46,555
Subordinated notes	58,764	58,764
Accrued interest payable	29,030	5,999
Interest rate swaps	27,531	25,307
Off-balance-sheet instruments	0	0
Fair Value
Assets:
Cash and due from banks	75,729	84,703
Federal funds sold and interest bearing deposits with other banks	35,406	38,094
Investment securities available-for-sale	1,605,242	1,775,128
Other investments	25,075	25,293
Mortgages held for sale	3,118	3,914
Loans and leases, net of allowance for loan and lease losses	5,980,435	5,712,972
Mortgage servicing rights	8,029	8,007
Accrued interest receivable	28,120	24,747
Interest rate swaps	27,021	24,838
Liabilities:
Deposits	6,954,179	6,909,392
Short-term borrowings	272,092	215,529
Long-term debt and mandatorily redeemable securities	45,386	45,111
Subordinated notes	50,889	51,398
Accrued interest payable	29,030	5,999
Interest rate swaps	27,531	25,307
Off-balance-sheet instruments	144	108
Level 1
Assets:
Cash and due from banks	75,729	84,703
Federal funds sold and interest bearing deposits with other banks	35,406	38,094
Investment securities available-for-sale	539,836	573,679
Other investments	25,075	25,293
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	5,278,426	5,787,806
Short-term borrowings	48,505	139,079
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	1,061,268	1,199,985
Other investments	0	0
Mortgages held for sale	3,118	3,914
Loans and leases, net of allowance for loan and lease losses	0	0
Mortgage servicing rights	0	0
Accrued interest receivable	28,120	24,747
Interest rate swaps	27,021	24,838
Liabilities:
Deposits	1,675,753	1,121,586
Short-term borrowings	223,587	76,450
Long-term debt and mandatorily redeemable securities	45,386	45,111
Subordinated notes	50,889	51,398
Accrued interest payable	29,030	5,999
Interest rate swaps	27,531	25,307
Off-balance-sheet instruments	144	108
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	4,138	1,464
Other investments	0	0
Mortgages held for sale	0	0
Loans and leases, net of allowance for loan and lease losses	5,980,435	5,712,972
Mortgage servicing rights	8,029	8,007
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