Old Second Bancorp (OSBC) 10-K 6 Mar 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Mar. 03, 2020	Jun. 28, 2019
Document and Entity Information
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Entity Registrant Name	OLD SECOND BANCORP INC
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		30,019,113
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Central Index Key	0000357173
Amendment Flag	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Public Float			$ 374.5

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 34,096	$ 38,599
Interest bearing deposits with financial institutions	16,536	16,636
Cash and cash equivalents	50,632	55,235
Securities available-for-sale, at fair value	484,648	541,248
Federal Home Loan Bank Chicago ("FHLBC") and Federal Reserve Bank Chicago ("FRBC") stock	9,917	13,433
Loans held-for-sale	3,061	2,984
Loans	1,930,812	1,897,027
Less: allowance for loan losses	19,789	19,006
Net loans	1,911,023	1,878,021
Premises and equipment, net	44,354	42,439
Other real estate owned	5,004	7,175
Mortgage servicing rights, net	5,935	7,357
Goodwill and core deposit intangible	21,275	21,814
Bank-owned life insurance (BOLI)	61,763	61,544
Deferred tax assets, net	11,459	21,280
Other assets	26,474	23,473
Total assets	2,635,545	2,676,003
Deposits:
Noninterest bearing demand	669,795	618,830
Interest bearing:
Savings, NOW, and money market	1,015,285	1,040,668
Time	441,669	457,175
Total deposits	2,126,749	2,116,673
Securities sold under repurchase agreements	48,693	46,632
Other short-term borrowings	48,500	149,500
Junior subordinated debentures	57,734	57,686
Senior notes	44,270	44,158
Notes payable and other borrowings	6,673	15,379
Other liabilities	25,062	16,894
Total liabilities	2,357,681	2,446,922
Stockholders' Equity
Common stock	34,854	34,720
Additional paid-in capital	120,657	119,081
Retained earnings	213,723	175,463
Accumulated other comprehensive (loss) income	4,562	(4,079)
Treasury stock	(95,932)	(96,104)
Total stockholders' equity	277,864	229,081
Total liabilities and stockholders' equity	$ 2,635,545	$ 2,676,003

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Consolidated Balance Sheets
Common stock, Par value (in dollars per share)	$ 1	$ 1
Common Stock, Shares authorized	60,000,000	60,000,000
Common stock, Shares issued	34,853,757	34,719,517
Common stock, Shares outstanding	29,931,809	29,763,078
Treasury stock, Shares	4,921,948	4,956,439

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Interest and Dividend Income
Loans, including fees	$ 97,719	$ 88,769	$ 70,737
Loans held-for-sale	133	127	123
Securities:
Taxable	9,256	9,577	10,202
Tax exempt	7,425	8,341	5,939
Dividends from FHLBC and FRBC stock	602	469	370
Interest bearing deposits with financial institutions	459	334	134
Total interest and dividend income	115,594	107,617	87,505
Interest Expense
Savings, NOW, and money market deposits	2,960	2,156	950
Time deposits	6,736	5,829	4,227
Securities sold under repurchase agreements	577	462	17
Other short-term borrowings	1,755	1,429	741
Junior subordinated debentures	3,724	3,716	4,002
Senior notes	2,699	2,688	2,689
Notes payable and other borrowings	384	398
Total interest expense	18,835	16,678	12,626
Net interest and dividend income	96,759	90,939	74,879
Provision for loan and lease losses	1,600	1,228	1,800
Net interest and dividend income after provision for loan and lease losses	95,159	89,711	73,079
Noninterest Income
Mortgage servicing rights mark to market loss	(2,662)	(734)	(802)
Net gain on sales of mortgage loans	5,112	3,791	4,803
Securities gains (losses), net	4,511	360	474
Increase in cash surrender value of BOLI	1,415	984	1,432
Death benefit realized on bank-owned life insurance	872	1,026
Debit card interchange income	4,177	4,420	4,200
Gains (losses) on disposal and transfer of fixed assets, net	32		10
Other income	5,320	5,126	4,778
Total noninterest income	35,800	31,353	30,372
Noninterest Expense
Salaries and employee benefits	46,869	44,161	40,080
Occupancy, furniture and equipment	8,289	6,915	5,951
Computer and data processing	5,631	6,745	4,387
FDIC insurance	176	653	658
General bank insurance	1,002	1,040	1,031
Amortization of core deposit intangible	539	387	96
Advertising expense	1,225	1,567	1,505
Debit card interchange expense	977	940	1,329
Legal fees	675	835	650
Other real estate expense, net	423	396	2,165
Other expense	13,296	13,489	11,297
Total noninterest expense	79,102	77,128	69,149
Income before income taxes	51,857	43,936	34,302
Provision for income taxes	12,402	9,924	19,164
Net income available to common stockholders	$ 39,455	$ 34,012	$ 15,138
Basic earnings per share (in dollars per share)	$ 1.32	$ 1.14	$ 0.51
Diluted earnings per share (in dollars per share)	1.30	1.12	0.50
Dividends declared per share (in dollars per share)	$ 0.04	$ 0.04	$ 0.04
Trust Income
Noninterest Income
Service charges on deposits	$ 6,655	$ 6,417	$ 6,203
Bank Servicing
Noninterest Income
Service charges on deposits	7,715	7,328	6,720
Secondary mortgage fees
Noninterest Income
Service charges on deposits	772	696	776
Mortgage Servicing
Noninterest Income
Service charges on deposits	$ 1,881	$ 1,939	$ 1,778

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated Statements of Comprehensive Income
Net income	$ 39,455	$ 34,012	$ 15,138
Unrealized holding (losses) gains on available-for-sale securities arising during the period	19,630	(9,053)	17,863
Related tax benefit (expense)	(5,521)	2,554	(7,183)
Holding (losses) gains after tax on available-for-sale securities	14,109	(6,499)	10,680
Less: Reclassification adjustment for the net gains (losses) realized during the period
Net realized gains (losses)	4,511	360	474
Related tax (expense) benefit	(1,267)	(100)	(198)
Net realized gains (losses) after tax	3,244	260	276
Other comprehensive (loss) income on available-for-sale securities	10,865	(6,759)	10,404
Changes in fair value of derivatives used for cashflow hedges	(3,092)	1,230	(293)
Related tax (expense) benefit	868	(348)	130
Other comprehensive income on cashflow hedges	(2,224)	882	(163)
Total other comprehensive (loss) income	8,641	(5,877)	10,241
Total comprehensive income	$ 48,096	$ 28,135	$ 25,379

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net income	$ 39,455	$ 34,012	$ 15,138
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Net premium amortization/discount (accretion) on securities	2,726	2,969	1,881
Securities (gains) losses, net	(4,511)	(360)	(474)
Provision for loan and lease losses	1,600	1,228	1,800
Originations of loans held-for-sale	(164,696)	(133,930)	(146,867)
Proceeds from sales of loans held-for-sale	168,472	137,622	151,289
Net gain on sales of mortgage loans	(5,112)	(3,791)	(4,803)
Change in fair value of mortgage servicing rights	2,662	734	802
Net discount / premium from (accretion) amortization on loans	(1,025)	(1,703)	(1,328)
Increase in cash surrender value of BOLI	(1,415)	(984)	(1,432)
Net gains on sale of other real estate owned	(264)	(792)	(474)
Provision for other real estate owned valuation losses	519	581	1,708
Depreciation of fixed assets and amortization of leasehold improvements	2,462	2,423	2,306
Net (gains) / losses on disposal and transfer of fixed assets	(32)		(10)
Amortization of core deposit intangible	539	387	96
Change in current income taxes receivable	1,546	1,678	(2,519)
Provision for deferred tax expense	6,436	9,840	13,662
Net deferred tax expense due to DTA valuation adjustment			7,909
Change in accrued interest receivable and other assets	(6,318)	1,218	(4,492)
Accretion of purchase accounting adjustment on time deposits	(38)	(100)
Amortization of purchase accounting adjustment on notes payable and other borrowings	92	81
Amortization of junior subordinated debentures issuance costs	48	47	48
Amortization of senior notes issuance costs	112	100	102
Impairment of goodwill	0
Change in accrued interest payable and other liabilities	6,863	1,390	1,582
Stock based compensation	2,516	2,257	1,181
Net cash provided by operating activities	52,637	54,907	37,105
Cash flows from investing activities
Proceeds from maturities and calls including pay down of securities available-for-sale	41,752	40,641	117,389
Proceeds from sales of securities available-for-sale	191,298	94,663	232,462
Purchases of securities available-for-sale	(159,544)	(75,044)	(343,470)
Net proceeds from sales of FHLBC stock	3,516	(295)	(2,250)
Net disbursements/proceeds from (purchases) sales of FRB stock		(1,421)
Net change in loans	(34,440)	(52,706)	(141,683)
Proceeds from claims on BOLI	1,196	1,204
Improvements in other real estate owned		(59)
Proceeds from sales of other real estate owned, net of participation purchase	2,779	4,782	6,107
Proceeds from disposition of premises and equipment	32		13
Net purchases of premises and equipment	(4,377)	(1,895)	(1,055)
Cash paid for acquisition, net of cash and cash equivalent retained		(35,711)
Net cash provided by investing activities	42,212	(25,841)	(132,487)
Cash flows from financing activities
Net change in deposits	10,114	(54,650)	56,140
Net change in securities sold under repurchase agreements	2,061	11,091	4,203
Net change in other short-term borrowings	(101,000)	23,625	45,000
Payment of senior note issuance costs			(42)
Net change in notes payable and other borrowings	(8,798)	(8,069)
Proceeds from exercise of stock options	32	33
Dividends paid common stock	(1,195)	(1,189)	(1,184)
Purchase of treasury stock	(666)	(505)	(236)
Net cash used in financing activities	(99,452)	(29,664)	103,881
Net change in cash and cash equivalents	(4,603)	(598)	8,499
Cash and cash equivalents at beginning of period	55,235	55,833	47,334
Cash and cash equivalents at end of period	50,632	55,235	55,833
Supplemental cash flow information
Income taxes paid	4,425	20	430
Interest paid for deposits	9,686	7,644	5,145
Interest paid for borrowings	9,073	8,323	7,362
Non-cash transfer of loans to other real estate owned	$ 863	$ 2,915	3,701
Non-cash transfer of premises to other real estate owned			$ 95

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock	Total
Balance at Dec. 31, 2016	$ 34,534	$ 116,653	$ 129,005	$ (8,762)	$ (96,220)	$ 175,210
Increase (Decrease) in Stockholders' Equity
Net income			15,138			15,138
Other comprehensive income, net of tax				10,241		10,241
Dividends declared and paid			(1,184)			(1,184)
Recapture of restricted stock	92	(92)
Stock based compensation		1,181				1,181
Purchase of treasury stock					(236)	(236)
Balance at Dec. 31, 2017	34,626	117,742	142,959	1,479	(96,456)	200,350
Increase (Decrease) in Stockholders' Equity
Net income			34,012			34,012
Other comprehensive income, net of tax				(5,877)		(5,877)
Dividends declared and paid			(1,189)			(1,189)
Vesting of restricted stock	91	(926)			835
Reclassification of stranded tax effects			(319)	319
Stock options exercised	3	8			22	33
Stock based compensation		2,257				2,257
Purchase of treasury stock					(505)	(505)
Balance at Dec. 31, 2018	34,720	119,081	175,463	(4,079)	(96,104)	229,081
Increase (Decrease) in Stockholders' Equity
Net income			39,455			39,455
Other comprehensive income, net of tax				8,641		8,641
Dividends declared and paid			(1,195)			(1,195)
Vesting of restricted stock	132	(634)			502
Stock options exercised	2	7			23	32
Stock warrants exercised		(313)			313
Stock based compensation		2,516				2,516
Purchase of treasury stock					(666)	(666)
Balance at Dec. 31, 2019	$ 34,854	$ 120,657	$ 213,723	$ 4,562	$ (95,932)	$ 277,864

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	$ 229,081	$ 200,350	$ 175,210
Other comprehensive income, net of tax	8,641	(5,877)	10,241
Balance	277,864	229,081	200,350
Accumulated Other Comprehensive Income (Loss) [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	(4,079)	1,479	(8,762)
Reclassification of stranded tax effects		319
Other comprehensive income, net of tax	8,641	(5,877)	10,241
Balance	4,562	(4,079)	1,479
Accumulated Unrealized Loss on Securities Available-for-Sale
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	(4,038)	2,239	(8,165)
Reclassification of stranded tax effects		482
Other comprehensive income, net of tax	10,865	(6,759)	10,404
Balance	6,827	(4,038)	2,239
Accumulated Unrealized Loss on Derivative Instruments
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	(41)	(760)	(597)
Reclassification of stranded tax effects		(163)
Other comprehensive income, net of tax	(2,224)	882	(163)
Balance	$ (2,265)	$ (41)	$ (760)

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 1: Summary of Significant Accounting Policies Nature of Operations - Old Second Bancorp, Inc. (the “Company”) is a corporation organized under the laws of the State of Delaware in 1981 that serves as the bank holding company for its wholly-owned subsidiary bank, Old Second National Bank. Old Second National Bank (the “Bank”) is a national banking association headquartered in Aurora, Illinois, that operates through 29 banking centers located in Cook, DeKalb, DuPage, Kane, Kendall, LaSalle and Will counties in Illinois. The Bank is a full-service banking business, offering a broad range of deposit products, trust and wealth management services, and lending services, including commercial, residential and consumer loans. We also offer a full complement of electronic banking services, such as online and mobile banking and corporate cash management products. The consolidated financial statements of the Company include the financial statements of the Bank and its wholly-owned subsidiaries, River Street Advisors, LLC, an investment advisory/management service company, Old Second Affordable Housing Fund, L.L.C., which provides down payment assistance for home ownership to qualified individuals, and Station I, LLC, which holds property acquired by the Bank through foreclosure or in the ordinary course of collecting a debt previously contracted with borrowers. The Company uses the accrual basis of accounting for financial reporting purposes. Certain amounts in prior year financial statements have been reclassified to conform to the 2019 presentation. Use of Estimates – The preparation of consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) and following general practices within the banking industry requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates and assumptions are based on the best available information, actual results could differ from those estimates. Principles of Consolidation – The accompanying consolidated financial statements include the accounts and results of operations of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions. Assets held in a fiduciary or agency capacity are not assets of the Company or its subsidiaries and are not included in the consolidated financial statements. Segment Reporting – An operating segment is a component of a business entity that engages in business activity from which it may earn revenues and/or incur expenses. It has operating results that are reviewed regularly by the entity’s chief operating decision maker in order to make decisions about resource allocation and performance assessment, and the segment has discrete financial information available for this assessment. As of December 31, 2019, the Company had one operating segment, which is community banking. Therefore, segment reporting is not required. Cash and Cash Equivalents – For purposes of the Consolidated Statements of Cash Flows, management has defined cash and cash equivalents to include cash and due from banks, interest-bearing deposits in other banks, and other short-term investments, such as federal funds sold and securities purchased under agreements to resell. The classification of cash and cash equivalents includes those assets held in the form of cash or liquid instruments with an original maturity of 90 days or less. Securities – Securities are classified as available-for-sale or held-to-maturity at the time of purchase or transfer. Securities that are classified as available-for-sale are carried at fair value. Unrealized gains and losses, net of related deferred income taxes, are recorded in stockholders’ equity as a separate component of accumulated other comprehensive income (loss). Unrealized gains and losses are not included in the calculation of regulatory capital. Securities held-to-maturity are carried at amortized cost and the discount or premium created at acquisition or in the transfer from available-for-sale is accreted or amortized to the maturity or expected payoff date but not an earlier call. Discounts are accreted into interest income over the estimated life of the related security and premiums are amortized into income to the earlier of the call date or estimated life of the related security using the level yield method. Purchases and sales of securities are recognized on a trade date basis. Realized securities gains or losses are reported in securities gains, net, in the Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. On a quarterly basis, the Company makes an assessment (at the individual security level) to determine whether there have been any events or circumstances indicating that a security with an unrealized loss is other-than-temporarily impaired (“OTTI”). In evaluating OTTI, the Company considers many factors, including the severity and duration of the impairment; the financial condition and near-term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; its ability and intent to hold the security for a period of time sufficient for a recovery in value; and the likelihood that it will be required to sell the security before a recovery in value, which may be at maturity. The amount of the impairment related to other factors is recognized in other comprehensive income (loss) unless management intends to sell the security or believes it is more likely than not that it will be required to sell the security prior to full recovery. Federal Home Loan Bank and Federal Reserve Bank Stock – The Company owns the stock of the Federal Home Loan Bank of Chicago (“FHLBC”) and the Federal Reserve Bank of Chicago (“FRBC”). Both of these entities require the Bank to invest in their nonmarketable stock as a condition of membership. The FHLBC is a governmental sponsored entity. The Bank continues to utilize the various products and services of the FHLBC and management considers this stock to be a long-term investment. FHLBC members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLBC stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. The Company’s ability to redeem the shares owned is dependent on the redemption practices of the FHLBC. The Company records dividends in income on the ex-dividend date. FRBC stock is redeemable at par, and therefore fair value equals cost. Loans Held-for-Sale – The Bank originates residential mortgage loans, which consist of loan products eligible for sale to the secondary market. Residential mortgage loans eligible for sale in the secondary market are carried at fair market value. The fair value of loans held-for-sale is determined using quoted secondary market prices on similar loans. Loans – Loans held-for-investment are carried at the principal amount outstanding, including certain net deferred loan origination fees and costs. Loans purchased as a result of a business combination are recorded at estimated fair value on the acquisition date, with no carryover of the related allowance for loan and lease losses recorded by the acquiree at the time of purchase. These loans are segregated into two classifications upon purchase: 1) purchased non-credit impaired (“non-PCI”) loans, accounted for in accordance with FASB ASC Subtopic 310-20 “ Nonrefundable Fees and Costs ” (“ASC 310-20”), as these loans do not have evidence of credit deterioration since origination. The premiums and discounts created when ASC 310-20 loans are recorded at their fair values at acquisition are recorded to income over the remaining life of the loan as an adjustment to the related loan’s yield; and 2) purchased credit impaired (“PCI”) loans, accounted for under FASB ASC Subtopic 310-30, “ Loans and Debt Securities Acquired with Deteriorated Credit Quality ” (“ASC 310-30”) as they display signs of credit deterioration since origination. Interest income, through accretion of the difference between the carrying value of the loans and the expected cash flows, is recognized on the acquired loans accounted for under ASC 310-30. Interest income on loans is accrued based on principal amounts outstanding. Loan and lease origination fees, commitment fees, and certain direct loan origination costs are deferred and amortized over the life of the related loans or commitments as a yield adjustment. The acquisition adjustment discount related to purchased loans is accreted into interest income over the contractual life of each loan, or is generally taken into income immediately upon payoff or renewal of the loan. Fees related to standby letters of credit, whose ultimate exercise is remote, are amortized into fee income over the estimated life of the commitment. Other credit-related fees are recognized as fee income when earned. Concentration of Credit Risk – Most of the Company’s business activity is with customers located within Cook, DeKalb, DuPage, Kane, Kendall, LaSalle and Will counties in Illinois. These banking centers surround or are within the Chicago metropolitan area. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy in that market area since the Bank generally makes loans within its market. There are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector. Commercial Loans – Such credits typically comprise working capital loans, loans for physical asset expansion, asset acquisition loans and other commercial and industrial business loans. Loans to closely held businesses will generally be guaranteed in full or for a meaningful amount by the businesses’ major owners. Commercial loans are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Minimum standards and underwriting guidelines have been established for all commercial loan types. Lease Financing Receivables – Lease financing receivables are subject to underwriting standards and processes similar to commercial loans. These loans are often secured by equipment or transportation assets, and are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Real Estate - Commercial Loans – Real estate - commercial loans are subject to underwriting standards and processes similar to commercial and industrial loans. These are loans secured by mortgages on real estate collateral. Commercial real estate loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the property. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type. Real Estate - Construction Loans – The Company defines real estate - construction loans as loans where the loan proceeds are controlled by the Company and used exclusively for the improvement or development of real estate in which the Company holds a mortgage. Due to the inherent risk in this type of loan, they are subject to other industry specific policy guidelines outlined in the Company’s Credit Risk Policy and are monitored closely. Real Estate - Residential Loans – These are loans that are extended to purchase or refinance 1-4 family residential dwellings, or to purchase or refinance vacant lots intended for the construction of a 1-4 family home. Residential real estate loans are considered homogenous in nature. Homes may be the primary or secondary residence of the borrower or may be investment properties of the borrower. Home Equity Lines of Credit (“HELOCs”) – These are lines of credit that are extended to refinance 1-4 family residential dwellings, or to finance the borrower’s needs and collateralized by the borrower’s residence. These lines may be fixed or variable in nature, and the home serving as collateral may also have a first lien outstanding. Consumer Loans – Consumer loans include loans extended primarily for consumer and household purposes. These also include overdrafts and other items not captured by the definitions above. Nonaccrual Loans – Generally, commercial and consumer loans, as well as loans secured by real estate are placed on nonaccrual status (i) when either principal or interest payments become 90 days or more past due based on contractual terms unless the loan is sufficiently collateralized such that full repayment of both principal and interest is expected and is in the process of collection within a reasonable period or (ii) when an individual analysis of a borrower’s creditworthiness indicates a credit should be placed on nonaccrual status whether or not the loan is 90 days or more past due. When a loan is placed on nonaccrual status, unpaid interest credited to income is reversed. Generally, after the loan is placed on nonaccrual, all debt service payments are applied to the principal on the loan. Nonaccrual loans are returned to accrual status when the financial position of the borrower and other relevant factors indicate there is no longer doubt that the Company will collect all principal and interest due. Commercial, consumer and real estate loans are generally charged-off when deemed uncollectible. A loss is recorded at that time if the net realizable value can be quantified and it is less than the associated principal outstanding. Troubled Debt Restructurings (“TDRs”) – A restructuring of debt is considered a TDR when (i) the borrower is experiencing financial difficulties and (ii) the creditor grants a concession, such as forgiveness of principal, reduction of the interest rate, changes in payments, or extension of the maturity, that it would not otherwise consider. Loans are not classified as TDRs when the modification is short-term or results in only an insignificant delay or shortfall in the payments to be received. The Company’s TDRs are determined on a case-by-case basis in connection with ongoing loan collection processes. The Company does not accrue interest on any TDRs unless it believes collection of all principal and interest under the modified terms is reasonably assured. For TDRs to accrue interest, the borrower must demonstrate both some level of past performance and the capacity to perform under the modified terms. Generally, six months of consecutive payment performance by the borrower under the restructured terms is required before TDRs are returned to accrual status. However, the period could vary depending on the individual facts and circumstances of the loan. An evaluation of the borrower’s current creditworthiness is used to assess whether the borrower has the capacity to repay the loan under the modified terms. This evaluation includes an estimate of expected cash flows, evidence of strong financial position, and estimates of the value of collateral, if applicable. Impaired Loans – Impaired loans consist of nonaccrual loans and TDRs (both accruing and on nonaccrual). A loan is considered impaired when it is probable that the Company will be unable to collect all contractual principal and interest due according to the terms of the loan agreement based on current information and events. With the exception of TDRs still accruing interest, loans deemed to be impaired are classified as nonaccrual and are exclusive of smaller homogeneous loans, such as HELOCs, 1-4 family mortgages, and consumer loans. 90-Days or Greater Past Due Loans – 90-days or greater past due loans are loans with principal or interest payments three months or more past due, but that still accrue interest. The Company continues to accrue interest if it determines these loans are sufficiently collateralized and the process of collection will conclude within a reasonable time period. Allowance for Loan and Lease Losses (“ALLL”) – The ALLL is calculated according to GAAP standards and is maintained by management at a level believed adequate to absorb estimated losses inherent in the existing loan portfolio. Determination of the ALLL is inherently subjective since it requires significant estimates and management judgment, and includes a level of imprecision given the difficulty of identifying and assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the ultimate adequacy of the ALLL is dependent upon a variety of factors beyond the Company’s direct control, including the performance of the loan portfolio, consideration of current economic trends, changes in interest rates and property values, the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on an analysis that uses historical loss experience, portfolio growth and concentration risk, management and staffing changes, the interpretation of loan risk classifications by regulatory authorities and other credit market factors. While each component of the ALLL is determined separately, the entire balance is available for the entire loan portfolio. Loans deemed to be uncollectible are charged-off against the ALLL while recoveries of amounts previously charged-off are credited to the ALLL. Approved releases from previously established loan loss reserves authorized under our ALLL methodology also reduce the ALLL. Additions to the ALLL are established through the provision for loan and lease losses charged to expense. The ALLL methodology consists of (i) specific reserves established for probable losses on individual loans for which the recorded investment in the loan exceeds the present value of expected future cash flows or the net realizable value of the underlying collateral, if collateral dependent, (ii) a general reserve based on a historical loss analysis that uses credit loss experience for the prior 20 quarters for each loan category, and (iii) the impact of other internal and external qualitative and credit market factors as assessed by management through detailed loan review, ALLL analysis and credit discussions. The Company refined its ALLL methodology in 2017, with implementation of management factor classifications for newer loan portfolios, such as the Company’s purchase of home equity lines of credit (“HELOCs”) in 2017 and the expanded business development company loan portfolio, as these portfolios had not been outstanding long enough to be sufficiently seasoned. In addition, the Company revised the risk weightings for the historical loss factors to allocate an increase in the loss factor applied in the earliest quarter, and a like reduction of the loss factor in the most recent quarter, as management believed the lower charge-off levels in the more recent quarters will likely not continue long-term. The Company refined its ALLL methodology again in 2018, as the Company determined that a minimum threshold of two basis points should be used for those quarters within the historical loss calculation with minimal or no losses incurred. In addition, a base line for reserves was set for economic conditions, past due and classified loans, loan portfolio/ concentrations, general and external factors. These factors are evaluated quarterly by the Bank’s ALLL Committee and the ASC 450 percentages are adjusted according to the overall bias in the individual factors (up, down or neutral). In the first quarter of 2018, these baseline levels were modified to establish floors and ceilings for each management factor. The establishment of floors and ceilings for management factors will allow management to evaluate changes to factors within prescribed guidelines and to remain consistent with factor determination in a stressed scenario, as a ceiling could be applied. The Company continued to enhance its ALLL methodology in 2019, with loan portfolio volume changes supporting revisions to the management factor related to portfolio volumes and concentrations. Lease portfolio growth of $40.9 million in 2019 supported an increase in the management factor related to the changes in the volume and concentrations for leases, and a decline in the construction portfolio of $38.8 million supported a decrease in the same management factor for construction loans. In addition, due to the falling interest rate environment, the management factors for variable rate commercial loans and HELOCs were reduced to become more commensurate with fixed rate commercial loan and HELOC products. Finally, as the purchased HELOC portfolio and the business development loans have been analyzed with a separate management factor for two years within the ALLL calculation, and there have been minimal HELOC charge-offs and no business development losses to date, these management factors were each reduced for the December 31, 2019 calculation. These modifications to the Company’s ALLL methodology are intended to more accurately reflect all portfolio risk, and resulted in a consistent balance for the overall unallocated component of the allowance over the past three years. The unallocated component of the allowance was $503,000 as of December 31, 2019, compared to $537,000 as of December 31, 2018 and $542,000 as of December 31, 2017. All calculations conform to GAAP. Premises and Equipment – Premises, furniture, equipment, and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation expense is determined by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the asset or the lease term including anticipated renewals. Rates of depreciation are generally based on the following useful lives: buildings, 25 to 40 years; building improvements, 3 to 15 years or longer under limited circumstances; and furniture and equipment, 3 to 10 years. Gains and losses on dispositions are included in other noninterest income in the Consolidated Statements of Income. Maintenance and repairs are charged to operating expenses as incurred, while improvements that conform to definitions of tangible property improvements are capitalized and depreciated over the estimated remaining life. Other Real Estate Owned (“OREO”) – Real estate assets acquired in settlement of loans are recorded at the fair value of the property when acquired, less estimated costs to sell, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Any deficiency between the net book value and fair value at the foreclosure or deed in lieu date is charged to the ALLL. Any reduction in OREO carrying value within 90 days of transfer to OREO would be charged to the ALLL. If the fair value of the property when acquired, less estimated costs to sell, is greater than the net book value of the loan, a gain on transfer is recorded. If a determination is made more than 90 days after the transfer to OREO that the fair value for the OREO property has declined, an OREO valuation allowance is established for the decrease between the recorded value and the updated fair value less costs to sell. Such declines are included in other noninterest expense in the Consolidated Statements of Income. A subsequent reversal of an OREO valuation adjustment can occur, but the resultant carrying value cannot exceed the cost basis established at transfer of the loan to OREO. Operating costs after acquisition are also expensed. Mortgage Servicing Rights – The Bank is also involved in the business of servicing mortgage loans. Servicing activities include collecting principal, interest, and escrow payments from borrowers, making tax and insurance payments on behalf of the borrowers, monitoring delinquencies, executing foreclosure proceedings, and accounting for and remitting principal and interest payments to the investors. Mortgage servicing rights represent the right to a stream of cash flows and an obligation to perform specified residential mortgage servicing activities. Mortgage loans that the Company is servicing for others aggregated to $723.4 million and $711.1 million at December 31, 2019, and 2018, respectively. Mortgage loans that the Company is servicing for others are not included in the consolidated balance sheets. Fees received in connection with servicing loans for others are recognized as earned. Loan servicing costs are charged to expense as incurred. Servicing rights are recognized separately as assets when they are acquired through sales of loans and servicing rights are retained. Servicing rights are initially recorded at fair value with the effect recorded in net gains on sales of mortgage loans in the Consolidated Statements of Income. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Servicing fee income, which is included in the Consolidated Statements of Income as mortgage servicing income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. Under the fair value measurement method, the Company measures mortgage servicing rights at fair value at each reporting date, reports changes in fair value of servicing assets in earnings in the period in which the changes occur, and includes these changes in mortgage servicing rights mark to market in the Consolidated Statements of Income. The fair values of mortgage servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Bank-Owned Life Insurance (“BOLI”) – BOLI represents life insurance policies on the lives of certain Company employees (both current and former) for which the Company is the sole owner and beneficiary. These policies are recorded as an asset on the Consolidated Balance Sheets at their cash surrender value (“CSV”) or the amount that could be realized. The change in CSV is recorded as an increase in cash surrender value of bank-owned life insurance in the Consolidated Statements of Income in noninterest income. In addition, insurance proceeds received, net of the original premium investment, are recorded as death benefit realized on bank-owned life insurance in the Consolidated Statements of Income in noninterest income. Goodwill and Core Deposit Intangible – Goodwill is the excess of an acquisition’s purchase price over the fair value of identified net assets acquired in an acquisition. Goodwill is not deemed to have definitive life span, and therefore is not amortized, but is subject to annual review for impairment. The annual review performed is qualitative in nature, and factors reviewed include macroeconomic data, industry specific data, current market conditions, and the Company’s overall financial performance. Based on management’s annual review of goodwill as of December 31, 2019, no goodwill impairment was noted. The core deposit intangible (“CDI”) is being amortized on an accelerated method over a ten year estimated useful life. In 2018, CDI of $3.1 million was recorded stemming from the ABC Bank acquisition, which is discussed further in Note 2. As of December 31, 2019, $2.3 million of the ABC Bank CDI remained, which is in addition to the $366,000 of CDI remaining from the Talmer branch purchase. Total CDI amortization expense of $539,000, $387,000 and $96,000 was recorded in 2019, 2018 and 2017, respectively. The expected future annual amortization expense for each of the next five years is approximately $494,000, $459,000, $421,000, $379,000, and $331,000. Debt Issuance Costs – Costs associated with the issuance of debt are presented in the Consolidated Balance Sheet as a direct reduction from the carrying value of that debt liability. The deferred issuance costs are amortized over the life the related debt instrument, and included within the debt’s interest expense. Loss Contingencies – Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the financial statements. Wealth Management – Assets held in a fiduciary or agency capacity for customers are not included in the consolidated financial statements as they are not assets of the Company or its subsidiaries. Fee income is included as a component of noninterest income in the Consolidated Statements of Income. Advertising Costs – All advertising costs incurred by the Company are expensed in the period in which they are incurred. Equity Incentive Plan – Compensation cost is recognized for stock options and restricted stock awards issued to employees based upon the fair value of the awards at the date of grant. A binomial model is utilized to estimate the fair value of stock options, which utilizes assumptions for expected volatilities based on the previous five-year historical volatilities of the Company's common stock. Historical data is used to estimate option exercise rates and post-vesting termination behavior, and the risk-free interest rate for the expected term of the option is based on the Treasury yield curve in effect at the time of grant. The market price of the Company’s common stock at the date of grant is used for restricted stock awards, which include restricted stock units. Compensation cost is recognized over the required service period, generally defined as the vesting period. Once the award is settled, the Company would determine whether the cumulative tax deduction exceeded the cumulative compensation cost recognized in the Consolidated Statement of Income. The cumulative tax deduction would include both the deductions from the dividends and the deduction from the exercise or vesting of the award. If the tax benefit received from the cumulative deductions exceeds the tax effect of the recognized cumulative compensation cost, the excess would be recognized as a credit to income tax expense. Income Taxes – The Company files income tax returns in the U.S. federal jurisdiction, and in the states of Illinois, Indiana and Wisconsin. The provision for income taxes is based on income in the consolidated financial statements, rather than amounts reported on the Company’s income tax return. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Any change in tax rates will be recorded in the period in which the law is enacted. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates that are expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. As of December 31, 2019 and 2018, the Company evaluated tax positions taken for filings with the Internal Revenue Service and all state jurisdictions in which it operates. The Company believes that income tax fil

Acquisitions

Acquisitions	12 Months Ended
	Dec. 31, 2018
Talmer
Business Acquisition [Line Items]
Acquisitions	Note 2: Acquisitions Greater Chicago Financial Corp. and ABC Bank Acquisition On April 20, 2018, the Company acquired Greater Chicago Financial Corp. (“GCFC”) and its wholly-owned subsidiary, ABC Bank, which operated four branches in the Chicago metro area. In addition to the acquisition price of $41.1 million, the Company retired the convertible and nonconvertible debentures held by GCFC upon acquisition, which totaled $6.6 million, including interest due. The purchase and the retirement of the debentures was funded with the Company’s cash on hand, and all GCFC common stock was retired and cancelled simultaneous with the close of the transaction. The Company acquired $227.6 million of loans, net of purchase accounting adjustments, and $248.5 million of deposits, net of purchase accounting adjustments for time deposits. Purchase accounting adjustments recorded include a loan valuation mark of $11.2 million, a core deposit intangible of $3.1 million, a fixed asset valuation adjustment of $1.5 million, and goodwill of $10.2 million. In addition, a deferred tax asset of $3.5 million was recorded as of the date of acquisition based on analysis of the fair value of assets acquired, less liabilities assumed. None of the $10.2 million recorded as goodwill is expected to be deductible for tax purposes. Acquisition related costs incurred by the Company for the year ended December 31, 2018, totaled $3.5 million, pre-tax, and included $1.1 million of salaries and employee benefits related expenses, and $1.8 million of data processing, computer and ATM related conversion costs. Acquisition costs incurred for the year ending December 31, 2017, related to the merger with GCFC were $65,000, and were expensed as incurred. The assets and liabilities associated with the acquisition of GCFC were recorded in the Consolidated Balance Sheets at their estimated fair values as of the acquisition date. In many cases the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature. The following table shows the estimated fair value of the assets acquired and liabilities assumed as of April 20, 2018. All amounts have been accounted for under the acquisition method of accounting. GCFC/ABC Bank Acquisition Summary As of Date of Acquisition April 20, 2018 Assets Cash and due from banks $ 6,669 Interest bearing deposits with financial institutions 500 Securities available-for-sale, at fair value 72,091 Federal funds sold 4,300 FHLBC stock 1,549 Loans 227,594 Premises and equipment 5,339 Other real estate owned 401 Goodwill and core deposit intangible 13,280 Deferred tax assets, net 3,459 Other assets 1,767 Total assets $ 336,949 Liabilities Noninterest bearing demand $ 58,005 Savings, NOW and money market 91,494 Time 98,999 Total deposits 248,498 Securities sold under repurchase agreements 5,623 Other short-term borrowings 10,875 Notes payable and other borrowings 23,367 Other liabilities 1,406 Total liabilities 289,769 Cash consideration paid 47,180 Total Liabilities Assumed and Cash Consideration Paid for Acquisition $ 336,949 Loans acquired in the GCFC acquisition were initially recorded at fair value with no separate allowance for loan losses. The Company reviewed the loans at acquisition to determine which loans should be considered PCI loans, defining impaired loans as those that were either not accruing interest or exhibited credit risk factors consistent with nonperforming loans at the acquisition date, or non-PCI loans, as addressed in the Company’s significant accounting policies. The following table represents the acquired loans as of date of acquisition and as of December 31, 2019: April 20, 2018 December 31, 2019 ABC Bank Acquired Loans PCI Non-PCI PCI Non-PCI Fair Value $ 11,360 $ 216,234 $ 8,601 $ 126,482 Contractually required principal and interest payments 19,447 220,308 13,254 127,630 Best estimate of contractual cash flows not expected to be collected 6,537 2,511 3,970 500 Best estimate of contractual cash flows expected to be collected 12,910 217,797 9,284 127,130 Talmer Bank and Trust Branch Purchase On October 28, 2016, the Bank completed the acquisition of the Chicago branch of Talmer Bank and Trust, the banking subsidiary of Talmer Bancorp, Inc. (“Talmer”). As a result of this transaction, the Bank acquired $221.0 million of loans, net of fair value adjustment, and $48.9 million of deposits. The purchase resulted in the Company establishing a metropolitan Chicago office presence with a strong commercial client focus, and retention of an experienced lending team. The acquisition was funded with security sales and cash on hand, and was recorded applying the acquisition method of accounting. Net assets acquired totaled $181.5 million. Acquisition expenses incurred in 2016 related to the Talmer branch purchase totaled $269,000 as of December 31, 2016; all material acquisition costs identified were paid or accrued as of year-end 2016.

Cash and Due from Banks

Cash and Due from Banks	12 Months Ended
	Dec. 31, 2019
Cash and Due from Banks.
Cash and Due from Banks	Note 3: Cash and Due from Banks The Bank is required to maintain reserve balances with the FRBC. As of December 31, 2019 and 2018, the required reserve balance was $12.4 million and $10.8 million, respectively. The nature of the Company’s business requires that it maintain amounts with other banks and federal funds which, at times, may exceed federally insured limits. Management monitors these correspondent relationships, and the Company has not experienced any losses in such accounts.

Securities

Securities	12 Months Ended
	Dec. 31, 2019
Securities
Securities	Note 4: Securities Investment Portfolio Management The following table summarizes the amortized cost and fair value of the securities portfolio at December 31, and the corresponding amounts of gross unrealized gains and losses were as follows: Gross Gross Amortized Unrealized Unrealized Fair 2019 Cost Gains Losses Value Securities available-for-sale U.S. Treasury $ 4,010 $ 26 $ - $ 4,036 U.S. government agencies 8,502 - (165) 8,337 U.S. government agencies mortgage-backed 16,164 443 (19) 16,588 States and political subdivisions 240,399 11,207 (2,431) 249,175 Collateralized mortgage obligations 57,059 963 (38) 57,984 Asset-backed securities 82,114 617 (887) 81,844 Collateralized loan obligations 66,898 29 (243) 66,684 Total securities available-for-sale $ 475,146 $ 13,285 $ (3,783) $ 484,648 Gross Gross Amortized Unrealized Unrealized Fair 2018 Cost Gains Losses Value Securities available-for-sale U.S. Treasury $ 4,006 $ - $ (83) $ 3,923 U.S. government agencies 11,112 - (161) 10,951 U.S. government agencies mortgage-backed 14,407 45 (377) 14,075 States and political subdivisions 277,112 1,916 (4,961) 274,067 Collateralized mortgage obligations 66,494 79 (2,144) 64,429 Asset-backed securities 108,574 1,165 (225) 109,514 Collateralized loan obligations 65,162 24 (897) 64,289 Total securities available-for-sale $ 546,867 $ 3,229 $ (8,848) $ 541,248 Nonmarketable equity investments include FHLBC stock and FRBC stock. FHLBC stock was $3.7 million and $7.2 million at December 31, 2019 and December 31, 2018, respectively. FRBC stock was $6.2 million at December 31, 2019 and December 31, 2018. Our FHLBC stock is necessary to maintain access to FHLBC advances. Securities valued at $320.8 million as of December 31, 2019, an increase from $318.4 million at year-end 2018 were pledged to secure deposits and borrowings, and for other purposes. The fair value, amortized cost and weighted average yield of debt securities at December 31, 2019, by contractual maturity, were as follows in the table below. Securities not due at a single maturity date are shown separately. Weighted Amortized Average Fair Securities available-for-sale Cost Yield Value Due in one year or less $ 509 2.03 % $ 510 Due after one year through five years 6,297 2.11 6,411 Due after five years through ten years 4,727 3.49 5,076 Due after ten years 241,378 3.02 249,551 252,911 3.00 261,548 Mortgage-backed and collateralized mortgage obligations 73,223 3.28 74,572 Asset-backed securities 82,114 2.99 81,844 Collateralized loan obligations 66,898 4.28 66,684 Total securities available-for-sale $ 475,146 3.22 % $ 484,648 At December 31, 2019, the Company’s investments include asset-backed securities totaling $54.9 million that are backed by student loans originated under the Federal Family Education Loan program (“FFEL”). Under the FFEL, private lenders made federally guaranteed student loans to parents and students. While the program was modified several times before elimination in 2010, FFEL securities are generally guaranteed by the U.S. Department of Education (“DOE”) at not less than 97% of the principal amount of the loans. The guarantee will reduce to 85% if the DOE receives reimbursement requests in excess of 5% of insured loans; reimbursement will drop to 75% if reimbursement requests exceed 9% of insured loans. As of December 31, 2019, the likelihood of the decrease in the government guarantee was minimal as the average rate of reimbursement for 2019 was less than 1.0%. The Company has accumulated the securities of the following two different originators that individually amount to over 10% of the Company’s stockholders equity. The amortized cost and fair value of securities related to these two issuers are as follows: December 31, 2019 Amortized Fair Issuer Cost Value GCO Education Loan Funding Corp $ 27,873 $ 27,470 Towd Point Mortgage Trust 33,551 34,322 Securities with unrealized losses at December 31, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: Less than 12 months 12 months or more 2019 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. government agencies - $ - $ - 4 $ 165 $ 8,337 4 $ 165 $ 8,337 U.S. government agencies mortgage-backed 3 10 3,018 2 9 843 5 19 3,861 States and political subdivisions 6 1,665 41,043 2 766 6,593 8 2,431 47,636 Collateralized mortgage obligations 2 26 9,054 2 12 1,209 4 38 10,263 Asset-backed securities 4 839 54,540 1 48 3,238 5 887 57,778 Collateralized loan obligations 4 62 21,927 4 181 25,020 8 243 46,947 Total securities available-for-sale 19 $ 2,602 $ 129,582 15 $ 1,181 $ 45,240 34 $ 3,783 $ 174,822 Less than 12 months 12 months or more 2018 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. Treasuries - $ - $ - 1 $ 83 $ 3,923 1 $ 83 $ 3,923 U.S. government agencies 3 100 7,385 1 61 3,566 4 161 10,951 U.S. government agencies mortgage-backed - - - 11 377 11,439 11 377 11,439 States and political subdivisions 4 126 17,713 33 4,835 110,326 37 4,961 128,039 Collateralized mortgage obligations 2 309 15,211 10 1,835 43,687 12 2,144 58,898 Asset-backed securities - - - 4 225 16,473 4 225 16,473 Collateralized loan obligations 7 721 46,547 1 176 7,824 8 897 54,371 Total securities available-for-sale 16 $ 1,256 $ 86,856 61 $ 7,592 $ 197,238 77 $ 8,848 $ 284,094 Recognition of other-than-temporary impairment was not necessary in the years ended December 31, 2019, 2018 or 2017. The changes in fair value related primarily to interest rate fluctuations. The Company’s review of other-than-temporary impairment confirmed no credit quality deterioration. The following table presents net realized gains (losses) on securities available-for-sale for the years ended: Years ended December 31, Securities available-for-sale 2019 2018 2017 Proceeds from sales of securities $ 191,298 $ 94,663 $ 232,462 Gross realized gains on securities 5,521 369 2,367 Gross realized losses on securities (1,010) (9) (1,893) Net realized gains $ 4,511 $ 360 $ 474 Income tax expense on net realized gains $ (1,267) $ (100) $ (198) Effective tax rate applied 28.1 % 27.8 % 41.8 %

Loans

Loans	12 Months Ended
	Dec. 31, 2019
Loans
Loans	Note 5: Loans Major classifications of loans were as follows as of December 31, were as follows: 2019 2018 Commercial $ 332,842 $ 314,323 Leases 119,751 78,806 Real estate - commercial 865,599 820,941 Real estate - construction 69,617 108,390 Real estate - residential 396,901 407,068 HELOC 123,457 140,442 Other 1 12,258 14,439 Total loans, excluding deferred loan costs and PCI loans 1,920,425 1,884,409 Net deferred loan costs 1,786 1,653 Total loans, excluding PCI loans 1,922,211 1,886,062 PCI loans, net of purchase accounting adjustments 8,601 10,965 Total loans $ 1,930,812 $ 1,897,027 1 The “Other” class includes consumer loans and overdrafts. There are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector although the real estate related categories listed above represent 75.4% and 77.9% of the portfolio at December 31, 2019, and December 31, 2018, respectively. Aged analysis of past due loans by class of loans as of December 31, were as follows: Recorded Investment 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and 2019 Past Due Past Due Due Due Current Nonaccrual Total Loans Accruing Commercial $ 1,271 $ 925 $ 2,103 $ 4,299 $ 328,399 $ 144 $ 332,842 $ 2,132 Leases 362 - 81 443 118,979 329 119,751 128 Real estate - commercial Owner occupied general purpose 1,725 686 - 2,411 146,323 792 149,526 - Owner occupied special purpose 512 340 - 852 173,346 4,388 178,586 - Non-owner occupied general purpose 626 95 343 1,064 317,923 549 319,536 348 Non-owner occupied special purpose - - - - 146,483 - 146,483 - Retail properties - - - - 52,930 1,146 54,076 - Farm 232 - - 232 17,160 - 17,392 - Real estate - construction Homebuilder - - - - 5,300 - 5,300 - Land - - - - 12,379 - 12,379 - Commercial speculative - - - - 37,571 - 37,571 - All other 26 - - 26 14,248 93 14,367 - Real estate - residential Investor 141 125 - 266 70,051 788 71,105 - Multi-family 10 1,700 - 1,710 187,995 68 189,773 - Owner occupied 3,450 1,351 - 4,801 128,650 2,572 136,023 - HELOC 735 50 18 803 121,110 1,544 123,457 20 Other 1 28 - - 28 13,997 19 14,044 - Total, excluding PCI loans $ 9,118 $ 5,272 $ 2,545 $ 16,935 $ 1,892,844 $ 12,432 $ 1,922,211 $ 2,628 PCI loans, net of purchase accounting adjustments 261 - - 261 5,377 2,963 8,601 - Total $ 9,379 $ 5,272 $ 2,545 $ 17,196 $ 1,898,221 $ 15,395 $ 1,930,812 $ 2,628 Recorded Investment 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and 2018 Past Due Past Due Due Due Current Nonaccrual Total Loans Accruing Commercial $ 58 $ - $ 352 $ 410 $ 313,913 $ - $ 314,323 $ 361 Leases - - - - 78,806 - 78,806 - Real estate - commercial Owner occupied general purpose 1,768 - 33 1,801 160,892 1,579 164,272 36 Owner occupied special purpose 826 135 - 961 192,426 395 193,782 - Non-owner occupied general purpose 2,832 203 - 3,035 286,115 4,236 293,386 - Non-owner occupied special purpose - - - - 106,036 3,099 109,135 - Retail properties - 620 - 620 45,968 - 46,588 - Farm - - - - 13,778 - 13,778 - Real estate - construction Homebuilder - - - - 5,102 - 5,102 - Land 266 - - 266 2,478 - 2,744 - Commercial speculative - - 350 350 55,060 - 55,410 355 All other - - - - 45,028 106 45,134 - Real estate - residential Investor 801 156 - 957 69,148 353 70,458 - Multi-family 545 - 179 724 195,504 - 196,228 180 Owner occupied 1,241 705 - 1,946 135,360 3,076 140,382 - HELOC 775 - - 775 138,801 866 140,442 - Other 1 53 5 3 61 16,000 31 16,092 3 Total, excluding PCI loans $ 9,165 $ 1,824 $ 917 $ 11,906 $ 1,860,415 $ 13,741 $ 1,886,062 $ 935 PCI loans, net of purchase accounting adjustments 1,452 - - 1,452 7,248 2,265 10,965 - Total $ 10,617 $ 1,824 $ 917 $ 13,358 $ 1,867,663 $ 16,006 $ 1,897,027 $ 935 1 The “Other” class includes consumer loans, overdrafts and net deferred costs. Credit Quality Indicators: The Company categorizes loans into credit risk categories based on current financial information, overall debt service coverage, comparison against industry averages, historical payment experience, and current economic trends. This analysis includes loans with outstanding balances or commitments greater than $50,000 and excludes homogeneous loans such as home equity lines of credit and residential mortgages. Loans with a classified risk rating are reviewed quarterly regardless of size or loan type. The Company uses the following definitions for classified risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Credits that are not covered by the definitions above are pass credits, which are not considered to be adversely rated. Credit Quality Indicators by class of loans as of December 31, were as follows: 2019 Special Pass Mention Substandard 2 Doubtful Total Commercial $ 307,948 $ 13,206 $ 11,688 $ - $ 332,842 Leases 119,045 377 329 - 119,751 Real estate - commercial Owner occupied general purpose 144,292 2,967 2,267 - 149,526 Owner occupied special purpose 171,444 2,663 4,479 - 178,586 Non-owner occupied general purpose 315,340 416 3,780 - 319,536 Non-owner occupied special purpose 142,958 3,525 - - 146,483 Retail Properties 52,342 588 1,146 - 54,076 Farm 15,155 1,027 1,210 - 17,392 Real estate - construction Homebuilder 5,300 - - - 5,300 Land 12,379 - - - 12,379 Commercial speculative 37,571 - - - 37,571 All other 14,105 - 262 - 14,367 Real estate - residential Investor 69,715 - 1,390 - 71,105 Multi-Family 187,560 1,710 503 - 189,773 Owner occupied 132,258 134 3,631 - 136,023 HELOC 121,476 12 1,969 - 123,457 Other 1 13,685 - 359 - 14,044 Total, excluding PCI loans $ 1,862,573 $ 26,625 $ 33,013 $ - $ 1,922,211 PCI loans, net of purchase accounting adjustments 573 261 7,767 - 8,601 Total $ 1,863,146 $ 26,886 $ 40,780 $ - $ 1,930,812 2018 Special Pass Mention Substandard 2 Doubtful Total Commercial $ 305,993 $ 8,193 $ 137 $ - $ 314,323 Leases 78,806 - - - 78,806 Real estate - commercial Owner occupied general purpose 157,334 1,660 5,278 - 164,272 Owner occupied special purpose 186,218 3,429 4,135 - 193,782 Non-owner occupied general purpose 284,818 202 8,366 - 293,386 Non-owner occupied special purpose 104,526 1,510 3,099 - 109,135 Retail Properties 44,805 - 1,783 - 46,588 Farm 11,307 1,249 1,222 - 13,778 Real estate - construction Homebuilder 5,102 - - - 5,102 Land 2,744 - - - 2,744 Commercial speculative 55,410 - - - 55,410 All other 42,524 - 2,610 - 45,134 Real estate - residential Investor 69,242 - 1,216 - 70,458 Multi-Family 195,249 - 979 - 196,228 Owner occupied 135,858 - 4,524 - 140,382 HELOC 138,553 - 1,889 - 140,442 Other 1 16,061 - 31 - 16,092 Total, excluding PCI loans $ 1,834,550 $ 16,243 $ 35,269 $ - $ 1,886,062 PCI loans, net of purchase accounting adjustments 907 2,906 7,152 - 10,965 Total $ 1,835,457 $ 19,149 $ 42,421 $ - $ 1,897,027 1 The “Other” class includes consumer, overdrafts and net deferred costs. 2 The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans. The Company had $831,000 and $448,000 in consumer mortgage loans in the process of foreclosure as of December 31, 2019 and December 31, 2018, respectively. Impaired loans, which include nonaccrual loans and troubled debt restructurings, by class of loan as of December 31, were as follows: 2019 2018 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded Commercial $ - $ - $ - $ - $ - $ - Leases 70 73 - - - - Commercial real estate Owner occupied general purpose 861 915 - 1,659 1,782 - Owner occupied special purpose 1,573 2,069 - 395 530 - Non-owner occupied general purpose 444 471 - 1,138 1,159 - Non-owner occupied special purpose - - - - - - Retail properties 1,146 1,183 - - - - Farm - - - - - - Construction Homebuilder - - - - - - Land - - - - - - Commercial speculative - - - - - - All other 93 132 - 49 73 - Residential Investor 872 1,022 - 353 459 - Multi-Family 68 68 - - - - Owner occupied 2,924 4,415 - 3,359 4,882 - HELOC 1,394 1,866 - 884 1,003 - Other 1 2 3 - 7 7 - Total impaired loans with no recorded allowance 9,447 12,217 - 7,844 9,895 - With an allowance recorded Commercial 144 147 93 - - - Leases 259 259 100 - - - Commercial real estate Owner occupied general purpose 106 106 1 396 396 3 Owner occupied special purpose 2,815 2,815 815 - - - Non-owner occupied general purpose 159 170 14 3,098 4,038 97 Non-owner occupied special purpose - - - 3,099 3,575 139 Retail properties - - - - - - Farm - - - - - - Construction Homebuilder - - - - - - Land - - - - - - Commercial speculative - - - - - - All other - - - 57 58 1 Residential Investor 787 787 10 808 808 4 Multi-Family - - - - - - Owner occupied 3,249 3,251 40 3,676 3,679 46 HELOC 1,034 1,035 56 1,357 1,357 49 Other 1 17 19 6 24 25 13 Total impaired loans with a recorded allowance 8,570 8,589 1,135 12,515 13,936 352 Total impaired loans, excluding PCI loans $ 18,017 $ 20,806 $ 1,135 $ 20,359 $ 23,831 $ 352 PCI loans, net of purchase accounting adjustments 2,624 4,686 77 - - - Total impaired loans $ 20,641 $ 25,492 $ 1,212 $ 20,359 $ 23,831 $ 352 1 The “Other” class includes consumer loans and overdraft. Average recorded investment and interest income recognized on impaired loans by class of loan for the years ending December 31, were as follows: Year Ended Year Ended Year Ended December 31, 2019 December 31, 2018 December 31, 2017 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized With no related allowance recorded Commercial $ - $ - $ - $ - $ 120 $ - Lease 35 - 89 - 272 - Commercial real estate Owner occupied general purpose 1,260 6 1,057 8 1,168 - Owner occupied special purpose 984 - 369 - 364 - Non-owner occupied general purpose 791 - 1,150 - 1,453 - Non-owner occupied special purpose - - - - 507 - Retail properties 573 - 541 - 1,130 - Farm - - - - - - Construction Homebuilder - - - - - - Land - - - - - - Commercial speculative - - - - 37 - All other 71 - 125 - 204 - Residential Investor 613 8 362 - 1,106 - Multi-Family 34 - 2,362 - 2,362 - Owner occupied 3,141 43 4,283 39 7,516 44 HELOC 1,139 5 1,005 1 1,804 1 Other 1 5 - 7 - 4 - Total impaired loans with no recorded allowance 8,646 62 11,350 48 18,047 45 With an allowance recorded Commercial 72 - - - - - Leases 129 - - - - - Commercial real estate Owner occupied general purpose 251 13 198 29 - - Owner occupied special purpose 1,408 - - - - - Non-owner occupied general purpose 1,628 4 1,549 - 123 - Non-owner occupied special purpose 1,550 - 1,549 - - - Retail properties - - - - - - Farm - - - - - - Construction Homebuilder - - - - - - Land - - - - - - Commercial speculative - - - - - - All other 28 - 29 - - - Residential Investor 798 44 818 43 414 43 Multi-Family - - - - - - Owner occupied 3,462 156 3,560 150 2,123 123 HELOC 1,196 52 1,171 56 493 35 Other 1 20 - 12 - - - Total impaired loans with a recorded allowance 10,542 269 8,886 278 3,153 201 Total impaired loans, excluding PCI loans $ 19,188 $ 331 $ 20,236 $ 326 $ 21,200 $ 246 PCI loans, net of purchase accounting adjustments 1,312 132 - - - - Total impaired loans $ 20,500 $ 463 $ 20,236 $ 326 $ 21,200 $ 246 1 The “Other” class includes consumer loans and overdrafts. Troubled debt restructurings (“TDRs”) are loans for which the contractual terms have been modified and both of these conditions exist: (1) there is a concession to the borrower and (2) the borrower is experiencing financial difficulties. Loans are restructured on a case-by-case basis during the loan collection process with modifications generally initiated at the request of the borrower. These modifications may include reduction in interest rates, extension of term, deferrals of principal, and other modifications. The Bank participates in the U.S. Department of the Treasury’s (the “Treasury”) Home Affordable Modification Program (“HAMP”) which gives qualifying homeowners an opportunity to refinance into more affordable monthly payments. The specific allocation of the ALLL on a TDR is determined by either discounting the modified cash flows at the original effective rate of the loan before modification or is based on the underlying collateral value less costs to sell, if repayment of the loan is collateral-dependent. If the resulting amount is less than the recorded book value, the Bank either establishes a valuation allowance (i.e. specific reserve) as a component of the ALLL or charges off the impaired balance if it determines that such amount is a confirmed loss. This method is used consistently for all segments of the portfolio. Loans that were modified during the period are summarized as follows: TDR Modifications Year Ended December 31, 2019 # of Pre-modification Post-modification contracts recorded investment recorded investment Troubled debt restructurings Real estate - commercial Owner occupied general purpose Deferral 1 1 $ 421 $ 418 Non-owner occupied general purpose Other 2 1 58 54 Retail properties Other 2 1 1,159 1,146 Real estate - residential Owner occupied HAMP 3 3 399 293 HELOC Other 2 1 39 38 Total 7 $ 2,076 $ 1,949 TDR Modifications Year Ended December 31, 2018 # of Pre-modification Post-modification contracts recorded investment recorded investment Troubled debt restructurings Real estate - commercial Owner occupied general purpose Other 2 1 $ 427 $ 396 Owner occupied special purpose Other 2 1 110 46 Real estate - construction All other HAMP 3 1 58 56 Real estate - residential Owner occupied HAMP 3 4 502 443 Other 2 1 34 29 HELOC HAMP 3 3 117 115 Rate 4 1 24 24 Other 2 9 622 600 Total 21 $ 1,894 $ 1,709 1 Deferral: Refers to the deferral of principal 2 Other: Change of terms from bankruptcy court 3 HAMP: Home Affordable Modification Program 4 Rate: Refers to interest rate reduction TDRs are classified as being in default on a case-by-case basis when they fail to be in compliance with the modified terms. There were $39,000 of HELOC TDRs that defaulted during year 2019 and none during year 2018. The Bank had no commitments to borrowers whose loans were classified as impaired at December 31, 2019. The following table details the accretable discount on all of the Company’s purchased loans, both non-PCI loans and PCI loans as of December 31 were as follows: Accretable Discount - Non-PCI Loans Accretable Discount - PCI Loans Non-Accretable Discount - PCI Loans Total Beginning balance, January 1, 2019 $ 1,867 $ 1,099 $ 5,969 $ 8,935 Accretion (1,050) (413) (606) (2,069) Charge-offs - (170) (1,387) (1,557) Transfer - 6 (6) - Ending balance, December 31, 2019 $ 817 $ 522 $ 3,970 $ 5,309 Accretable Discount - Non-PCI Loans Accretable Discount - PCI Loans Non-Accretable Discount - PCI Loans Total Beginning balance, January 1, 2018 $ 835 $ - $ - $ 835 Purchases 3,182 1,551 6,536 11,269 Accretion (1,777) (424) (434) (2,635) Transfer (373) (28) (133) (534) Ending balance, December 31, 2018 $ 1,867 $ 1,099 $ 5,969 $ 8,935 Loans to principal officers, directors, and their affiliates, which are made in the ordinary course of business, as of December 31, were as follows: 2019 2018 Beginning balance $ 1,417 $ 1,524 New loans 635 89 Repayments and other reductions (1,025) (196) Change in related party status (64) - Ending balance $ 963 $ 1,417

Allowance for Loan Losses

Allowance for Loan Losses	12 Months Ended
	Dec. 31, 2019
Allowance for Loan Losses
Allowance for Loan Losses	Note 6: Allowance for Loan and Lease losses Changes in the ALLL by segment of loans based on method of impairment for the year ended December 31, 2019, were as follows: Real Estate Real Estate Real Estate Allowance for loan and lease losses: Commercial Leases Commercial Construction Residential HELOC Other 1 Total Beginning balance $ 2,832 $ 734 $ 10,470 $ 969 $ 1,931 $ 1,449 $ 621 $ 19,006 Charge-offs 109 49 1,019 9 118 338 409 2,051 Recoveries 74 - 684 1 103 172 200 1,234 Provision (Release) 218 577 1,040 (448) 99 (111) 225 1,600 Ending balance $ 3,015 $ 1,262 $ 11,175 $ 513 $ 2,015 $ 1,172 $ 637 $ 19,789 Ending balance: Individually evaluated for impairment $ 93 $ 100 $ 830 $ - $ 50 $ 56 $ 6 $ 1,135 Ending balance: Collectively evaluated for impairment 2,922 1,162 10,285 513 1,965 1,116 614 18,577 Ending balance: Acquired and accounted for ASC 310-30 - - 60 - - - 17 77 Total ending allowance balance $ 3,015 $ 1,262 $ 11,175 $ 513 $ 2,015 $ 1,172 $ 637 $ 19,789 Loans: Ending balance: Individually evaluated for Impairment $ 144 $ 329 $ 7,104 $ 93 $ 7,900 $ 2,428 $ 19 $ 18,017 Ending balance: Collectively evaluated for impairment 332,698 119,422 858,495 69,524 389,001 121,029 14,025 1,904,194 Ending balance: Acquired and accounted for ASC 310-30 - - 3,420 600 4,581 - - 8,601 Total ending loans balance $ 332,842 $ 119,751 $ 869,019 $ 70,217 $ 401,482 $ 123,457 $ 14,044 $ 1,930,812 Changes in the ALLL by segment of loans based on method of impairment for the year ended December 31, 2018, were as follows: Real Estate Real Estate Real Estate Allowance for loan and lease losses: Commercial Leases Commercial Construction Residential HELOC Other 1 Total Beginning balance $ 2,453 $ 692 $ 9,522 $ 923 $ 1,846 $ 1,446 $ 579 $ 17,461 Charge-offs 41 13 1,548 (16) (45) 147 409 2,097 Recoveries 157 - 447 35 1,146 364 265 2,414 Provision (Release) 263 55 2,049 (5) (1,106) (214) 186 1,228 Ending balance $ 2,832 $ 734 $ 10,470 $ 969 $ 1,931 $ 1,449 $ 621 $ 19,006 Ending balance: Individually evaluated for impairment $ - $ - $ 239 $ 1 $ 50 $ 49 $ 13 $ 352 Ending balance: Collectively evaluated for impairment 2,832 734 10,231 968 1,881 1,400 608 18,654 Ending balance: Acquired and accounted for ASC 310-30 - - - - - - - - Total ending allowance balance $ 2,832 $ 734 $ 10,470 $ 969 $ 1,931 $ 1,449 $ 621 $ 19,006 Loans: Ending balance: Individually evaluated for impairment $ - $ - $ 9,785 $ 106 $ 8,196 $ 2,241 $ 31 $ 20,359 Ending balance: Collectively evaluated for impairment 314,323 78,806 811,156 108,284 398,872 138,201 16,061 1,865,703 Ending balance: Acquired and accounted for ASC 310-30 - - 4,182 745 6,038 - - 10,965 Total ending loan balance $ 314,323 $ 78,806 $ 825,123 $ 109,135 $ 413,106 $ 140,442 $ 16,092 $ 1,897,027 Changes in the ALLL by segment of loans based on method of impairment for the year ended December 31, 2017, were as follows: Real Estate Real Estate Real Estate Allowance for loan and lease losses: Commercial Leases Commercial Construction Residential HELOC Other 1 Total Beginning balance $ 1,629 $ 633 $ 9,547 $ 389 $ 2,178 $ 1,331 $ 451 $ 16,158 Charge-offs 25 215 309 23 1,347 386 1 2,306 Recoveries 30 - 161 377 980 243 18 1,809 Provision 819 274 123 180 35 258 111 1,800 Ending balance $ 2,453 $ 692 $ 9,522 $ 923 $ 1,846 $ 1,446 $ 579 $ 17,461 Ending balance: Individually evaluated for impairment $ - $ - $ - $ - $ 53 $ 91 $ - $ 144 Ending balance: Collectively evaluated for impairment 2,453 692 9,522 923 1,793 1,355 579 17,317 Total ending allowance balance $ 2,453 $ 692 $ 9,522 $ 923 $ 1,846 $ 1,446 $ 579 $ 17,461 Loans: Ending balance: Individually evaluated for impairment $ - $ 178 $ 3,041 $ 201 $ 14,575 $ 2,110 $ 7 $ 20,112 Ending balance: Collectively evaluated for impairment 272,851 68,147 747,950 84,961 298,822 110,723 14,056 1,597,510 Total ending loan balance $ 272,851 $ 68,325 $ 750,991 $ 85,162 $ 313,397 $ 112,833 $ 14,063 $ 1,617,622 1 The “Other” class includes consumer loans, overdrafts and net deferred costs.

Other Real Estate Owned

Other Real Estate Owned	12 Months Ended
	Dec. 31, 2019
Other Real Estate Owned
Other Real Estate Owned	Note 7: Other Real Estate Owned Details related to the activity in the other real estate owned (“OREO”) portfolio, net of valuation reserve, for the periods presented are itemized in the following table. Years Ended December 31, Other real estate owned 2019 2018 2017 Balance at beginning of period $ 7,175 $ 8,371 $ 11,916 Property additions, net of acquisition adjustments 872 3,316 3,796 Property improvements - 59 - Less: Proceeds from property disposals, net of participation purchase and of gains/losses 2,515 3,990 5,633 Period valuation adjustments 519 581 1,708 Other adjustments 9 - - Balance at end of period $ 5,004 $ 7,175 $ 8,371 Activity in the valuation allowance was as follows: Twelve Months Ended December 31, 2019 2018 2017 Balance at beginning of period $ 8,027 $ 8,208 $ 9,982 Provision for unrealized losses 519 581 1,708 Reductions taken on sales (1,834) (762) (3,482) Balance at end of period $ 6,712 $ 8,027 $ 8,208 Expenses related to OREO, net of lease revenue includes: Twelve Months Ended December 31, 2019 2018 2017 Gain on sales, net $ (264) $ (792) $ (474) Provision for unrealized losses 519 581 1,708 Operating expenses 173 649 1,227 Less: Lease revenue 5 42 296 Net OREO expense $ 423 $ 396 $ 2,165

Premises and Equipment

Premises and Equipment	12 Months Ended
	Dec. 31, 2019
Premises and Equipment
Premises and Equipment	Note 8: Premises and Equipment Premises and equipment at December 31, were as follows: 2019 2018 Accumulated Accumulated Depreciation/ Net Book Depreciation/ Net Book Cost Amortization Value Cost Amortization Value Land $ 18,501 $ - $ 18,501 $ 18,501 $ - $ 18,501 Buildings 43,457 24,912 18,545 43,376 23,913 19,463 Leasehold improvements 2,314 399 1,915 710 246 464 Furniture and equipment 47,696 42,303 5,393 45,258 41,247 4,011 Total Premises and Equipment $ 111,968 $ 67,614 $ 44,354 $ 107,845 $ 65,406 $ 42,439

Deposits

Deposits	12 Months Ended
	Dec. 31, 2019
Deposits
Deposits	Note 9: Deposits Major classifications of deposits at December 31, were as follows: 2019 2018 Noninterest bearing demand $ 669,795 $ 618,830 Savings 307,015 304,400 NOW accounts 425,792 425,878 Money market accounts 282,478 310,390 Certificates of deposit of less than $100,000 227,578 230,781 Certificates of deposit of $100,000 through $250,000 151,279 159,953 Certificates of deposit of more than $250,000 62,812 66,441 Total deposits $ 2,126,749 $ 2,116,673 The Company had $31.4 million and $30.4 million in brokered certificates of deposit as of December 31, 2019 and 2018, respectively. Deposits held by senior officers and directors, including their related interests, totaled $2.9 million and $1.6 million as of December 31, 2019 and 2018, respectively. At December 31, scheduled maturities of time deposits were as follows: 2020 $ 354,394 2021 51,594 2022 18,125 2023 9,948 2024 7,608 Total time deposits $ 441,669

Borrowings

Borrowings	12 Months Ended
	Dec. 31, 2019
Borrowings
Borrowings	Note 10: Borrowings The following table is a summary of borrowings as of December 31, were as follows: 2019 2018 Securities sold under repurchase agreements $ 48,693 $ 46,632 Other short-term borrowings 1 48,500 149,500 Junior subordinated debentures 2 57,734 57,686 Senior notes 44,270 44,158 Notes payable and other borrowings 6,673 15,379 Total borrowings $ 205,870 $ 313,355 1 Includes short-term FHLBC advances and the outstanding portion of an operating line of credit. 2 See Note 11: Junior Subordinated Debentures, below. The Company enters into deposit sweep transactions where the transaction amounts are secured by pledged securities. These transactions consistently mature within 1 to 90 days from the transaction date and are governed by sweep repurchase agreements. All sweep repurchase agreements are treated as financings secured by U.S. government agencies, collateralized mortgage obligations, mortgage-backed securities and/or highly-rated issues of State and political subdivisions, and had a carrying amount of $48.7 million and $46.6 million at December 31, 2019 and 2018, respectively. The fair value of the pledged collateral was $70.7 million and $72.8 million at December 31, 2019 and December 31, 2018, respectively. At December 31, 2019, there were no customers with secured balances exceeding 10% of stockholders’ equity. Total FHLBC advances are generally limited to the lower of 35% of total assets and the amount of acceptable collateral adjusted for applicable funding percentages as determined by the FHLBC. As of December 31, 2019, the Bank had outstanding advances in the amount of $48.5 million with a weighted average interest rate of 1.78%. As of December 31, 2018, the Bank had outstanding advances in the amount of $149.5 million with a weighted average interest rate of 2.50%. As of December 31, 2019, FHLBC stock owned by the Bank was valued at $3.7 million, the fair value of securities pledged to the FHLBC was $54.6 million, and the principal balance of loans pledged was $644.5 million. In 2018, the Bank assumed $23.4 million of long-term FHLBC advances with the ABC acquisition. At December 31, 2019, these advances have a total outstanding balance of $6.7 million and are scheduled to mature over the next 6.25 years with an interest rate of 2.83%. At December 31, 2018, these advances have a total outstanding balance of $15.3 million and were scheduled to mature over the next 7.25 years with interest rates ranging between 1.40% to 2.83%. Based on the total amount of securities and loans pledged, the Bank had total borrowing capacity of $491.7 million. Adjusting for the outstanding advances and letters of credit, the Bank had a remaining funding availability of $327.3 million on December 31, 2019. The Company also has $44.3 million of senior notes outstanding, net of deferred issuance costs, as of December 31, 2019 and $44.2 million as of December 31, 2018. The senior notes were issued in 2016, had an original maturity of ten years, and terms include interest payable semiannually at 5.75% for five years. Beginning December 31, 2021, the senior debt will pay interest at a floating rate, with interest payable quarterly at three month LIBOR plus 385 basis points. The notes are redeemable, in whole or in part, at the option of the Company, beginning with the interest payment date on December 31, 2021, and on any floating rate interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the notes plus accrued and unpaid interest. As of December 31, 2019 and 2018, unamortized debt issuance costs related to the senior notes were $730,000 and $842,000, respectively, and are included as a reduction of the balance of the senior notes on the Consolidated Balance Sheets. These deferred issuance costs will be amortized to interest expense over the ten year term of the notes and included in the Consolidated Statements of Income. Scheduled maturities and weighted average rates of borrowings for the years ended December 31, were as follows: 2019 2018 Weighted Weighted Average Average Balance Rate Balance Rate 2019 $ N/A N/A $ 196,132 1.78 % 2020 97,193 1.85 % 8,500 2.05 2021 - - - - 2022 - - - - 2023 - - - - 2024 - - - - Thereafter 108,677 6.11 108,723 6.07 Total borrowings $ 205,870 4.10 % $ 313,355 3.28 %

Junior Subordinated Debentures

Junior Subordinated Debentures	12 Months Ended
	Dec. 31, 2019
Junior Subordinated Debentures.
Junior Subordinated Debentures	Note 11: Junior Subordinated Debentures The Company completed the sale of $27.5 million of cumulative trust preferred securities by its unconsolidated subsidiary, Old Second Capital Trust I in June 2003. An additional $4.1 million of cumulative trust preferred securities were sold in July 2003. The costs associated with the issuance of the cumulative trust preferred securities are being amortized over 30 years. The trust preferred securities may remain outstanding for a 30‑year term but, subject to regulatory approval, can be called in whole or in part by the Company after June 30, 2008, and can be exercised by the Company from time to time thereafter. When not in deferral, distributions on the securities are payable quarterly at an annual rate of 7.80%. The Company issued a new $32.6 million subordinated debenture to Old Second Capital Trust I in return for the aggregate net proceeds of this trust preferred offering. The interest rate and payment frequency on the debenture are equivalent to the cash distribution basis on the trust preferred securities. On January 28, 2020, the Company issued a redemption notice with respect to its 7.80% subordinated debentures due June 30, 2033 (the “Subordinated Debentures”) relating to the outstanding 7.80% cumulative trust preferred securities (NASDAQ: OSBCP) (the “Trust Securities”) issued by Old Second Capital Trust I (“Trust I”), which are guaranteed on a subordinated basis by the Company. An aggregate principal amount of Subordinated Debentures of $32,604,000 was redeemed on March 2, 2020, plus accrued and unpaid interest through the redemption date. Also on March 2, 2020, all of the outstanding Trust Securities were redeemed on at a redemption price of $10.00 per Trust Security, which reflects 100% of the liquidation amount, plus accrued and unpaid distributions through the redemption date. In connection with the redemption, the Trust Securities were delisted from The Nasdaq Stock Market. The Company sold an additional $25.0 million of cumulative trust preferred securities through a private placement completed by an additional, unconsolidated subsidiary, Old Second Capital Trust II, in April 2007. These trust preferred securities also mature in 30 years, but subject to the aforementioned regulatory approval, can be called in whole or in part on a quarterly basis commencing June 15, 2017. The quarterly cash distributions on the securities are fixed at 6.77% through June 15, 2017, and float at 150 basis points over three-month LIBOR thereafter. The Trust II issuance converted from fixed to float rate at three month LIBOR plus 150 basis points on June 16, 2017; as of December 31, 2019, the rate effective for the Trust II issuance was 4.40%. Upon conversion to a floating rate, a cash flow hedge was initiated which resulted in the total interest rate period on the debt of 4.37% as of December 31, 2018, compared to the rate paid prior to June 15, 2017 of 6.77%. The Company issued a new $25.8 million subordinated debenture to the Old Second Capital Trust II in return for the aggregate net proceeds of this trust preferred offering. The interest rate and payment frequency on the debenture are equivalent to the cash distribution basis on the trust preferred securities. Both of the debentures issued by the Company are disclosed on the Consolidated Balance Sheets as junior subordinated debentures and the related interest expense for each issuance is included in the Consolidated Statements of Income. As of December 31, 2019 and 2018, unamortized debt issuance costs related to the junior subordinated debentures were $644,000 and $692,000 respectively, and are included as a reduction to the balance of the junior subordinated debentures on the Consolidated Balance Sheets. Under the terms of the subordinated debentures issued to each of Old Second Capital Trust I and II, the Company is allowed to defer payments of interest for 20 quarterly periods without default or penalty, but such amounts continue to accrue. Also during a deferral period, the Company generally may not pay cash dividends on or repurchase its common stock or preferred stock. As of December 31, 2019, the Company is current on the payments due on these securities.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
Income Taxes
Income Taxes	Note 12: Income Taxes Income tax expense (recovery) for the years ending December 31, were as follows: 2019 2018 2017 Current federal $ 4,815 $ - $ (2,407) Current state 1,151 84 - Deferred federal 3,177 6,226 11,724 Deferred state 3,259 3,614 1,938 Recovery due to State of Illinois tax rate change - - (1,566) Expense due to enactment of federal tax reform - - 9,475 Total income tax expenses $ 12,402 $ 9,924 $ 19,164 The following were the components of the deferred tax assets and liabilities as of December 31: 2019 2018 Allowance for loan and lease losses $ 6,082 $ 5,803 Deferred compensation 907 665 Goodwill amortization/impairment 3,456 4,698 Stock based compensation 1,622 1,377 Business combination adjustments 1,547 2,532 OREO write-downs 1,931 2,337 Federal net operating loss (“NOL”) carryforward 340 2,199 State NOL carryforward 326 4,034 Other assets 2,270 1,401 Total deferred tax assets 18,481 25,046 Accumulated depreciation on premises and equipment (746) (443) Mortgage servicing rights (1,779) (2,210) Amortization of core deposit intangible (144) (130) State tax benefits (927) (1,839) Other liabilities (1,637) (741) Total deferred tax liabilities (5,233) (5,363) Net deferred tax asset before adjustments related to other comprehensive income 13,248 19,683 Tax effect of adjustments related to other comprehensive (loss) income (1,789) 1,597 Net deferred tax asset $ 11,459 $ 21,280 On December 22, 2017, H.R.1, commonly known as the Tax Cuts and Jobs Act (the “Act”), was signed into law. Among other things, the Act reduced the corporate federal tax rate from 35% to 21% effective January 1, 2018. As a result, the Company was required to remeasure, through income tax expense, deferred tax assets and liabilities using the enacted rate at which these items are expected to recover or settle. The re-measurement of the Company’s net deferred tax asset resulted in additional income tax expense of approximately $9.5 million for the year ended December 31, 2017. The Company also re-measured the net deferred tax asset as a result of the Illinois income tax increase effective as of July 1, 2017. This resulted in a tax benefit of approximately $1.6 million for the year ended December 31, 2017. At December 31, 2019, the Company no longer has federal net operating loss carryforward. The Company had a $1.9 million state net operating loss carryforward which begins to expire in 2025. In addition, the Company had $1.6 million of recognized built-in loss carryforward, which is limited to $945,000 per year under IRC Section 382. The components of the provision for deferred income tax expense for the years ending December 31, were as follows: 2019 2018 2017 Provision for loan and lease losses $ (279) $ (426) $ 1,680 Deferred compensation (242) (15) 85 Amortization of core deposit intangible 14 957 574 Stock based compensation (245) (511) 80 Business combination adjustments 985 927 - OREO write-downs 406 48 2,725 Federal net operating loss carryforward 1,859 5,041 12,122 State net operating loss carryforward 3,708 2,986 715 Deferred tax credit - - 2,058 Depreciation 303 59 (297) Mortgage servicing rights (431) 124 (674) Goodwill amortization/impairment 1,242 1,389 4,040 State tax benefits (912) (550) (1,738) Other, net 28 (189) 201 Total deferred tax expense $ 6,436 $ 9,840 $ 21,571 Effective tax rates differ from federal statutory rates applied to financial statement income for the years ended December 31, due to the following: 2019 2018 2017 Tax at statutory federal income tax rate $ 10,890 $ 9,227 $ 11,817 Nontaxable interest income, net of disallowed interest deduction (1,409) (1,600) (1,976) BOLI income (480) (422) (501) State income taxes, net of federal benefit 3,496 2,927 1,775 Stock based compensation (207) (305) - Impact of Federal tax rate change - - 9,475 Impact of Illinois tax rate change - - (1,566) Other, net 112 97 140 Total tax at effective tax rate $ 12,402 $ 9,924 $ 19,164 The Company evaluated positive and negative evidence in order to determine if it was more likely than not that the deferred tax asset would be recovered through future income. Significant positive evidence evaluated included recent and projected earnings, significantly improved asset quality and an improved capital position. No significant negative evidence was noted.

Equity Compensation Plans

Equity Compensation Plans	12 Months Ended
	Dec. 31, 2019
Equity Compensation Plans
Equity Compensation Plans	Note 13: Equity Compensation Plans Stock-based awards are outstanding under the Company’s 2008 Equity Incentive Plan (the “2008 Plan”), the Company’s 2014 Equity Incentive Plan, as amended (the “2014 Plan”), and the Company’s 2019 Equity Incentive Plan (the “2019 Plan” and together with the 2008 Plan and the 2014 Plan, the “Plans”). The 2019 Plan was approved at the May 2019 annual stockholders’ meeting and the number of authorized shares under the 2019 Plan is fixed at 600,000. Following approval of the 2014 Plan, no further awards will be granted under the 2008 Plan or any other prior Company equity compensation plan, and following the approval of the 2019 Plan, no further awards will be granted under the 2014 Plan. The 2019 Plan authorizes the granting of qualified stock options, non-qualified stock options, restricted stock, restricted stock units, and stock appreciation rights (“SARs”). Awards may be granted to selected directors, officers, employees or eligible service providers under the 2019 Plan at the discretion of the Compensation Committee of the Company’s Board of Directors. As of December 31, 2019, 447,781 shares remained available for issuance under the 2019 Plan. The Company granted 16,500 stock options in 2009 under the 2008 Equity Incentive Plan, and there are no remaining outstanding stock options as of December 31, 2019. No stock options were granted in 2009 through 2019. There were 4,500 stock options exercised during 2019 and 2018, and no stock options exercised during 2017. At December 31, 2019, the Company had no unrecognized compensation cost related to unvested stock options as all stock options have fully vested. A summary of stock option activity in the Plans for the year ending December 31, 2019, is as follows: Weighted- Weighted Average Average Remaining Exercise Contractual Aggregate Shares per Price Term (years) Intrinsic Value Beginning outstanding 4,500 $ 7.49 0.1 $ 25 Canceled - - - - Exercised (4,500) 7.49 - (27) Expired - - - - Ending outstanding - $ - - $ - Exercisable at end of period - $ - - $ - A summary of stock option activity as of each year is as follows: 2019 2018 2017 Intrinsic value of options exercised $ 27 $ 27 $ - Cash received from option exercises 32 33 - Tax benefit realized from option exercises 5 5 - Weighted average fair value of options granted - - - Generally, restricted stock and restricted stock units granted under the Plans vest three years from the grant date, but the Compensation Committee of the Company’s Board of Directors has discretionary authority to change some terms including the amount of time until the vest date. Under the 2019 Plan, unless otherwise provided in an award agreement, upon the occurrence of a change in control, all stock options and SARs then held by the participant will become fully exercisable immediately if, and all stock awards and cash incentive awards will become fully earned and vested immediately if, (i) the 2019 Plan is not an obligation of the successor entity following a change in control or (ii) the 2019 Plan is an obligation of the successor entity following a change in control and the participant incurs a termination of service without cause or for good reason following the change in control. Notwithstanding the immediately preceding sentence, if the vesting of an award is conditioned upon the achievement of performance measures, then such vesting will generally be subject to the following: if, at the time of the change in control, the performance measures are less than 50% attained (pro rata based upon the time of the period through the change in control), the award will become vested and exercisable on a fractional basis with the numerator being equal to the percentage of attainment and the denominator being 50%; and if, at the time of the change in control, the performance measures are at least 50% attained (pro rata based upon the time of the period through the change in control), the award will become fully earned and vested immediately upon the change in control. The Company granted restricted stock under its equity compensation plans beginning in 2005 and it began granting restricted stock units in February 2009. Awards of restricted stock under the Plans generally entitle holders to voting and dividend rights upon grant and are subject to forfeiture until certain restrictions have lapsed including employment for a specific period. Awards of restricted stock units under the Plans are also subject to forfeiture until certain restrictions have lapsed including employment for a specific period, but do not entitle holders to voting rights until the restricted period ends and shares are transferred in connection with the units. Total compensation cost that has been charged for the 2019 and 2014 Plan was $2.5 million, $2.3 million and $1.2 million the years ending December 31, 2019, 2018 and 2017 respectively. There were 171,356 restricted stock units granted during the year ending December 31, 2019. There were 254,281 restricted stock units granted the year ending December 31, 2018. Compensation expense is recognized over the vesting period of the restricted stock unit based on the market value of the award on the issue date. A summary of changes in the Company’s unvested restricted awards for the year ending December 31, is as follows: 2019 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Unvested at January 1 552,281 $ 11.30 Granted 171,356 12.75 Vested (168,354) 7.68 Forfeited - - Unvested at December 31 555,283 $ 12.85 Total unrecognized compensation cost of restricted stock unit awards was $3.0 million as of December 31, 2019, which is expected to be recognized over a weighted-average period of 1.83 years.

Earnings Per Share

Earnings Per Share	12 Months Ended
	Dec. 31, 2019
Earnings Per Share
Earnings Per Share	Note 14: Earnings Per Share The earnings per share, both basic and diluted, are included below as of December 31, (in thousands except for per share data): 2019 2018 2017 Basic earnings per share: Weighted-average common shares outstanding 29,891,046 29,728,308 29,600,702 Net income $ 39,455 $ 34,012 $ 15,138 Basic earnings per share $ 1.32 $ 1.14 $ 0.51 Diluted earnings per share: Weighted-average common shares outstanding 29,891,046 29,728,308 29,600,702 Dilutive effect of unvested restricted awards 1 525,302 532,692 435,142 Dilutive effect of stock options and warrants - 47,935 2,573 Diluted average common shares outstanding 30,416,348 30,308,935 30,038,417 Net Income $ 39,455 $ 34,012 $ 15,138 Diluted earnings per share $ 1.30 $ 1.12 $ 0.50 Number of antidilutive options and warrants excluded from the diluted earnings per share calculation - - 815,339 1 Includes the common stock equivalents for restricted share rights that are dilutive. The above earnings per share calculation did not include a warrant for 815,339 shares of common stock that was outstanding as of December 31, 2017, because the warrant was anti-dilutive at an exercise price of $13.43. Of note, the warrant was sold at auction by the Treasury in June 2013 to a third party investor. On January 16, 2019, the warrant for 815,339 common shares of the Company’s stock was exercised in a cashless transaction. This warrant was issued in January 2009 at an exercise price of $13.43 per share, and expired on January 16, 2019. As of the date of exercise, the Company’s closing market price was $14.23 per share, resulting in 45,836 shares being issued. These shares were issued from treasury stock held by the Company, and resulted in a $313,000 reduction of treasury stock in January 2019.

Commitments

Commitments	12 Months Ended
	Dec. 31, 2019
Commitments
Commitments	Note 15: Commitments In the normal course of business, there are outstanding commitments that are not reflected in the Consolidated Financial Statements. Commitments include financial instruments that involve, to varying degrees, elements of credit, interest rate, and liquidity risk. In management’s opinion, these do not represent unusual risks and management does not anticipate significant losses as a result of these transactions. The Company uses the same credit policies in making commitments and conditional obligations for borrowers as it does for on-balance sheet instruments. The following table is a summary of financial instrument commitments as of December 31, were as follows: 2019 2018 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ 339 $ 9,612 $ 9,951 $ 327 $ 7,158 $ 7,485 Commercial standby - - - - 397 397 Performance standby 571 6,212 6,783 532 6,381 6,913 910 15,824 16,734 859 13,936 14,795 Non-borrower: Performance standby - 67 67 - 67 67 Total letters of credit $ 910 $ 15,891 $ 16,801 $ 859 $ 14,003 $ 14,862 Unused loan commitments: $ 111,348 $ 320,120 $ 431,468 $ 89,303 $ 297,785 $ 387,088 The Bank occupies facilities under long-term operating leases, some of which include provisions for future rent increases. In addition, the Company leases space at sites that house automatic teller machines (ATMs). The Company also receives rental income on certain leased properties. As of December 31, 2019, aggregate future minimum rental income to be received under noncancelable leases totaled $42,000. Total facility net operating lease expense or revenue recorded under all operating leases was a net expense of $248,000, $180,000 and $64,000 in 2019, 2018 and 2017, respectively. Total ATM lease expense, including the costs related to servicing those ATM’s, was $916,000, $979,000 and $679,000 in 2019, 2018 and 2017, respectively, with growth in expense in 2018 forward due to the ATMs obtained with the acquisition of ABC Bank. The following table below is the estimated aggregate minimum annual rental commitments at December 31, 2019: 2025 2020 2021 2022 2023 2024 and thereafter Rental commitment $ 496 $ 742 $ 621 $ 612 $ 628 $ 3,940 Legal proceedings The Company and its subsidiaries, from time to time, pursue collection suits and other actions that arise in the ordinary course of business against their borrowers and are defendants in legal actions arising from normal business activities. Management, after consultation with legal counsel, believes that the ultimate liabilities, if any, resulting from these actions will not have a material adverse effect on the financial position of the Bank or on the consolidated financial position of the Company based on all known information at this time.

Regulatory & Capital Matters

Regulatory & Capital Matters	12 Months Ended
	Dec. 31, 2019
Regulatory & Capital Matters
Regulatory & Capital Matters	Note 16: Regulatory & Capital Matters The Bank is subject to the risk-based capital regulatory guidelines, which include the methodology for calculating the risk-weighted Bank assets, developed by the Office of the Comptroller of the Currency (the “OCC”) and the other bank regulatory agencies. In connection with the current economic environment, the Bank’s current level of nonperforming assets and the risk-based capital guidelines, the Bank’s board of directors’ guidelines are for the Bank to maintain a Tier 1 leverage capital ratio at or above eight percent (8%) and a total risk-based capital ratio at or above twelve percent (12%). The Bank currently exceeds those thresholds. Bank holding companies are required to maintain minimum levels of capital in accordance with capital guidelines implemented by the Board of Governors of the Federal Reserve System. The general bank and holding company capital adequacy guidelines in force as of the periods reported are shown in the accompanying table, as are the capital ratios of the Company and the Bank, as of December 31, 2019, and December 31, 2018. In July 2013, the U.S. federal banking authorities issued final rules (the “Basel III Rules”) establishing more stringent regulatory capital requirements for U.S. banking institutions, which went into effect on January 1, 2015. A detailed discussion of the Basel III Rules is included in Part I, Item 1 of the under the heading “Supervision and Regulation.” The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. The capital ratios below are calculated pursuant to the capital requirements in effect for the periods reported below. Capital levels and industry defined regulatory minimum required levels at December 31, were as follows: Minimum Capital Well Capitalized Adequacy with Capital Under Prompt Corrective Actual Conservation Buffer, if applicable 1 Action Provisions 2 Amount Ratio Amount Ratio Amount Ratio 2019 Common equity tier 1 capital to risk weighted assets Consolidated $ 251,477 11.14 % $ 158,020 7.000 % N/A N/A Old Second Bank 322,496 14.35 157,315 7.000 $ 146,078 6.50 % Total capital to risk weighted assets Consolidated 327,886 14.53 236,944 10.500 N/A N/A Old Second Bank 342,280 15.23 235,978 10.500 224,741 10.00 Tier 1 capital to risk weighted assets Consolidated 308,102 13.65 191,858 8.500 N/A N/A Old Second Bank 322,496 14.35 191,026 8.500 179,789 8.00 Tier 1 capital to average assets Consolidated 308,102 11.93 103,303 4.00 N/A N/A Old Second Bank 322,496 12.50 103,199 4.00 128,998 5.00 2018 Common equity tier 1 capital to risk weighted assets Consolidated $ 207,597 9.29 % $ 142,458 6.375 % N/A N/A Old Second Bank 295,599 13.29 141,794 6.375 $ 144,574 6.50 % Total capital to risk weighted assets Consolidated 282,126 12.63 220,585 9.875 N/A N/A Old Second Bank 314,600 14.14 219,708 9.875 222,489 10.00 Tier 1 capital to risk weighted assets Consolidated 263,125 11.78 175,901 7.875 N/A N/A Old Second Bank 295,599 13.29 175,157 7.875 177,938 8.00 Tier 1 capital to average assets Consolidated 263,125 10.08 104,415 4.00 N/A N/A Old Second Bank 295,599 11.36 104,084 4.00 130,105 5.00 1 As of December 31, 2019, amounts are shown inclusive of a capital conservation buffer of 2.50%; as compared to 1.875% at December 31, 2018. Under the Federal Reserve’s Small Bank Holding Company Policy Statement, the Company is not subject to the minimum capital adequacy and capital conservation buffer capital requirements at the holding company level, unless otherwise advised by the Federal Reserve (such capital requirements are applicable only at the Bank level). Although the minimum regulatory capital requirements are not applicable to the Company, we calculate these ratios for our own planning and monitoring purposes. 2 The prompt corrective action provisions are only applicable at the Bank level. The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized.” Dividend Restrictions In addition to the above requirements, banking regulations and capital guidelines generally limit the amount of dividends that may be paid by a Bank without prior regulatory approval. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s profits, combined with the retained profit of the previous two years, subject to the capital requirements described above. Pursuant to the Basel III rules that were fully phased-in at January 1, 2019, the Bank must keep a capital conservation buffer of 2.5% on all risk-based capital requirements in order to avoid additional limitations on capital distributions.

Mortgage Banking Derivatives

Mortgage Banking Derivatives	12 Months Ended
	Dec. 31, 2019
Mortgage Banking Derivatives
Mortgage Banking Derivatives
Mortgage Banking Derivatives	Note 17: Mortgage Banking Derivatives Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. It is the Company’s practice to sell mortgage-backed securities (“MBS”) contracts for the future delivery to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These contracts are also derivatives and collectively with the forward commitments for the future delivery of mortgage loans are considered forward contracts. These mortgage banking derivatives are not designated in hedge relationships using the accepted accounting for derivative instruments and hedging activities at December 31, were as follows: 2019 2018 Forward contracts: Notional amount $ 13,500 $ 9,315 Fair value (15) (50) Rate lock commitments: Notional amount $ 10,167 $ 8,815 Fair value 265 209 Fair values were estimated based on changes in mortgage interest rates from the date of the commitments. The Company sold $164.7 million in loans to investors receiving proceeds of $168.5 million and resulting in a gain on sale of $5.1 million for the year ended December 31, 2019. Sales to investors included $122.4 million, or 74.4%, to FNMA and $18.7 million, or 11.4%, to FHLMC for the year ended December 31, 2019. No other individual investor was sold more than 10% of the total loans sold.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2019
Fair Value Measurements
Fair Value Measurements	Note 18: Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy established by the Company also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs that may be used to measure fair value are: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. Level 2: Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own view about the assumptions that market participants would use in pricing an asset or liability. Transfers between levels are deemed to have occurred at the end of the reporting period. At December 31, 2019 and 2018, there were no transfers between levels. The majority of securities are valued by external pricing services or dealer market participants and are classified in Level 2 of the fair value hierarchy. Both market and income valuation approaches are utilized. Quarterly, the Company evaluates the methodologies used by the external pricing services or dealer market participants to develop the fair values to determine whether the results of the valuations are representative of an exit price in the Company’s principal markets and an appropriate representation of fair value. The Company uses the following methods and significant assumptions to estimate fair value: · Government-sponsored agency debt securities are primarily priced using available market information through processes such as benchmark spreads, market valuations of like securities, like securities groupings and matrix pricing. · Other government-sponsored agency securities, MBS and some of the actively traded real estate mortgage investment conduits and collateralized mortgage obligations are priced using available market information including benchmark yields, prepayment speeds, spreads, volatility of similar securities and trade date. · State and political subdivisions are largely grouped by characteristics (e.g., geographical data and source of revenue in trade dissemination systems). Because some securities are not traded daily and due to other grouping limitations, active market quotes are often obtained using benchmarking for like securities. · Beginning March 31, 2015, auction rate asset backed securities are priced using market spreads, cash flows, prepayment speeds, and loss analytics. This process supports the transfer to Level 2 valuations. · Annually every security holding is priced by a pricing service independent of the regular and recurring pricing services used. The independent service provides a measurement to indicate if the price assigned by the regular service is within or outside of a reasonable range. Management reviews this report and applies judgment in adjusting calculations at year end related to securities pricing. · Residential mortgage loans available for sale in the secondary market are carried at fair market value. The fair value of loans held-for-sale is determined using quoted secondary market prices. · Lending related commitments to fund certain residential mortgage loans, e.g. residential mortgage loans with locked interest rates to be sold in the secondary market and forward commitments for the future delivery of mortgage loans to third party investors as well as forward commitments for future delivery of MBS are considered derivatives. Fair values are estimated based on observable changes in mortgage interest rates including prices for MBS from the date of the commitment and do not typically involve significant judgments by management. · The fair value of mortgage servicing rights is based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income to derive the resultant value. The Company is able to compare the valuation model inputs, such as the discount rate, prepayment speeds, weighted average delinquency and foreclosure/bankruptcy rates to widely available published industry data for reasonableness. · Interest rate swap positions, both assets and liabilities, are based on valuation pricing models using an income approach reflecting readily observable market parameters such as interest rate yield curves. · The fair value of impaired loans with specific allocations of the ALLL is essentially based on recent real estate appraisals or the fair value of the collateralized asset. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are made in the appraisal process by the appraisers to reflect differences between the available comparable sales and income data. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. · Nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO are measured at the lower of carrying amount or fair value, less costs to sell. Fair values are based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. Assets and Liabilities Measured at Fair Value on a Recurring Basis : The tables below present the balance of assets and liabilities at December 31, measured by the Company at fair value on a recurring basis are as follows: 2019 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 4,036 $ - $ - $ 4,036 U.S. government agencies - 8,337 - 8,337 U.S. government agencies mortgage-backed - 16,588 - 16,588 States and political subdivisions - 243,756 5,419 249,175 Collateralized mortgage obligations - 57,984 - 57,984 Asset-backed securities - 81,844 - 81,844 Collateralized loan obligations - 66,684 - 66,684 Loans held-for-sale - 3,061 - 3,061 Mortgage servicing rights - - 5,935 5,935 Interest rate swap agreements - 2,771 - 2,771 Mortgage banking derivatives - 250 - 250 Total $ 4,036 $ 481,275 $ 11,354 $ 496,665 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 5,974 $ - $ 5,974 Total $ - $ 5,974 $ - $ 5,974 December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 3,923 $ - $ - $ 3,923 U.S. government agencies - 10,951 - 10,951 U.S. government agencies mortgage-backed - 14,075 - 14,075 States and political subdivisions - 265,902 8,165 274,067 Collateralized mortgage obligations - 64,429 - 64,429 Asset-backed securities - 109,514 - 109,514 Collateralized loan obligations - 64,289 - 64,289 Loans held-for-sale - 2,984 - 2,984 Mortgage servicing rights - - 7,357 7,357 Interest rate swap agreements - 672 - 672 Mortgage banking derivatives - 159 - 159 Total $ 3,923 $ 532,975 $ 15,522 $ 552,420 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 756 $ - $ 756 Total $ - $ 756 $ - $ 756 The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are as follows: Year Ended December 31, 2019 Securities available-for-sale Collateralized States and Mortgage Mortgage Political Servicing Obligation Subdivisions Rights Beginning balance January 1, 2019 $ - $ 8,165 $ 7,357 Total gains or losses Included in earnings - (32) (1,953) Included in other comprehensive income - 726 - Purchases, issuances, sales, and settlements Purchases - 17,938 - Issuances - - 1,240 Settlements - (21,378) (709) Ending balance December 31, 2019 $ - $ 5,419 $ 5,935 Year Ended December 31, 2018 Securities available-for-sale Collateralized States and Mortgage Mortgage Political Servicing Obligation Subdivisions Rights Beginning balance January 1, 2018 $ 2,268 $ 14,261 $ 6,944 Transfers out of Level 3 (1,308) - - Total gains or losses Included in earnings 35 - (181) Included in other comprehensive income 40 (746) - Purchases, issuances, sales, and settlements Purchases - 22,046 - Issuances - - 1,146 Settlements (1,035) (27,396) (552) Ending balance December 31, 2018 $ - $ 8,165 $ 7,357 The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2019: Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 5,935 Discounted Cash Flow Discount Rate 10.0% - 58.8% 10.1 % Prepayment Speed 0.0 - 69.0% 14.1 % The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2018: Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 7,357 Discounted Cash Flow Discount Rate 10.0 - 229.7% 10.2 % Prepayment Speed 7.0 - 68.9% 9.6 % In addition to the above, Level 3 fair value measurement included $5.4 million for state and political subdivisions representing various local municipality securities at December 31, 2019. Level 3 fair value measurement included $8.2 million on the state and political subdivisions line at December 31, 2018. Given the small dollar amount and size of the municipality issuances involved, this is categorized as Level 3 based on the payment stream received by the Company from the municipalities. That payment stream is otherwise an unobservable input. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis: The Company may be required, from time to time, to measure certain other assets at fair value on a nonrecurring basis in accordance with GAAP. These assets consist of impaired loans and OREO. For assets measured at fair value on a nonrecurring basis at December 31, the following tables provide the level of valuation assumptions used to determine each valuation and the carrying value of the related assets: 2019 Level 1 Level 2 Level 3 Total Impaired loans 1 $ - $ - $ 7,435 $ 7,435 Other real estate owned, net 2 - - 5,004 5,004 Total $ - $ - $ 12,439 $ 12,439 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, had a carrying amount of $8.6 million and a valuation allowance of $1.2 million, resulting in an increase of specific allocations within the provision for loan and lease losses of $783,000 for the year ending December 31, 2019. 2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $5.0 million, which is made up of the outstanding balance of $12.6 million, net of a valuation allowance of $6.7 million and participations of $937,000, at December 31, 2019. 2018 Level 1 Level 2 Level 3 Total Impaired loans 1 $ - $ - $ 12,163 $ 12,163 Other real estate owned, net 2 - - 7,175 7,175 Total $ - $ - $ 19,338 $ 19,338 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, had a carrying amount of $12.5 million, and a valuation allowance of 352,000, resulting in an increase of specific allocations within the provision for loan and lease losses of $208,000 for the year ending December 31, 2018. 2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $7.2 million, which is made up of the outstanding balance of $16.1 million, net of a valuation allowance of $8.0 million and participations of $900,000, at December 31, 2018. The Company also has assets that under certain conditions are subject to measurement at fair value on a nonrecurring basis. These assets include OREO and impaired loans. The Company has estimated the fair values of these assets based primarily on Level 3 inputs. OREO and impaired loans are generally valued using the fair value of collateral provided by third party appraisals. These valuations include assumptions related to cash flow projections, discount rates, and recent comparable sales. The numerical range of unobservable inputs for these valuation assumptions are not meaningful.

Fair Values of Financial Instru

Fair Values of Financial Instruments	12 Months Ended
	Dec. 31, 2019
Fair Values of Financial Instruments
Fair Values of Financial Instruments	Note 19: Fair Value of Financial Instruments The estimated fair values approximate carrying amount for all items except those described in the following table. Securities available-for-sale fair values are based upon market prices or dealer quotes, and if no such information is available, on the rate and term of the security. The carrying value of FHLBC stock approximates fair value as the stock is nonmarketable and can only be sold to the FHLBC or another member institution at par. FHLBC stock is carried at cost and considered a Level 2 fair value. For December 31, 2019 and 2018, the fair values of loans and leases are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. The fair value of time deposits is estimated using discounted future cash flows at current rates offered for deposits of similar remaining maturities. The fair values of borrowings were estimated based on interest rates available to the Company for debt with similar terms and remaining maturities. The fair value of off balance sheet volume is not considered material. The fair value of mortgage banking derivatives is discussed in Note 17: Mortgage Banking Derivatives, above. The carrying amount and estimated fair values of financial instruments at December 31, were as follows: December 31, 2019 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 34,096 $ 34,096 $ 34,096 $ - $ - Interest bearing deposits with financial institutions 16,536 16,536 16,536 - - Securities available-for-sale 484,648 484,648 4,036 475,193 5,419 FHLBC and FRBC stock 9,917 9,917 - 9,917 - Loans held-for-sale 3,061 3,061 - 3,061 - Net loans 1,911,023 1,915,531 - - 1,915,531 Accrued interest receivable 9,697 9,697 - 9,697 - Financial liabilities: Noninterest bearing deposits $ 669,795 $ 669,795 $ 669,795 $ - $ - Interest bearing deposits 1,456,954 1,457,832 - 1,457,832 - Securities sold under repurchase agreements 48,693 48,693 - 48,693 - Other short-term borrowings 48,500 48,500 - 48,500 - Junior subordinated debentures 57,734 51,188 33,614 17,574 - Senior notes 44,270 46,269 46,269 - - Note payable and other borrowings 6,673 7,003 - 7,003 - Interest rate swap agreements 3,101 3,101 - 3,101 - Borrowing interest payable 96 96 - 96 - Deposit interest payable 983 983 - 983 - 2018 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 38,599 $ 38,599 $ 38,599 $ - $ - Interest bearing deposits with financial institutions 16,636 16,636 16,636 - - Securities available-for-sale 541,248 541,248 3,923 529,160 8,165 FHLBC and FRBC stock 13,433 13,433 - 13,433 - Loans held-for-sale 2,984 2,984 - 2,984 - Net loans 1,878,021 1,867,594 - - 1,867,594 Accrued interest receivable 10,940 10,940 - 10,940 - Financial liabilities: Noninterest bearing deposits $ 618,830 $ 618,830 $ 618,830 $ - $ - Interest bearing deposits 1,497,843 1,495,614 - 1,495,614 - Securities sold under repurchase agreements 46,632 46,632 - 46,632 - Other short-term borrowings 149,500 149,500 - 149,500 - Junior subordinated debentures 57,686 47,625 32,989 14,636 - Senior notes 44,158 45,008 45,008 - - Note payable and other borrowings 15,379 15,364 - 15,364 - Interest rate swap agreements 58 58 - 58 - Borrowing interest payable 281 281 - 281 - Deposit interest payable 973 973 - 973 -

Financial Instruments with Off-

Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions	12 Months Ended
	Dec. 31, 2019
Derivative Excluding Mortgage Banking Derivatives
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk	Note 20: Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions Risk Management Objective of Using Derivatives The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s loan portfolio. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Prior to 2019, such derivatives were used to hedge the variable cash flows associated with existing variable-rate borrowings. In December of 2019, the Company also executed a loan pool hedge of $50 million to convert variable rate loans to a fixed rate index for a five year term. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest income or interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income or expense as interest payments are received on the variable rate loan pool or the Company’s variable-rate borrowings. During the next twelve months, the Company estimates that an additional $17,000 will be reclassified as a decrease to interest income and an additional $274,000 will be reclassified as an increase to interest expense. Non-designated Hedges Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. The Company also grants mortgage loan interest rate lock commitments to borrowers, subject to normal loan underwriting standards. The interest rate risk associated with these loan interest rate lock commitments is managed with contracts for future deliveries of loans as well as selling forward mortgage-backed securities contracts. Loan interest rate lock 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. Commitments to originate residential mortgage loans held-for-sale and forward commitments to sell residential mortgage loans or forward MBS contracts are considered derivative instruments and changes in the fair value are recorded to mortgage banking revenue. Fair values are estimated based on observable changes in mortgage interest rates including mortgage-backed securities prices from the date of the commitment. Disclosure of Fair Values of Derivative Instruments on the Balance Sheet The Company entered into a forward starting interest rate swap on August 18, 2015, with an effective date of June 15, 2017. This transaction had a notional amount totaling $25.8 million as of December 31, 2019 and 2018, was designated as a cash flow hedge of certain junior subordinated debentures and was determined to be fully effective during the period presented. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swap is recorded in other liabilities with changes in fair value recorded in other comprehensive income, net of tax. The amount included in other comprehensive income would be reclassified to current earnings should all or a portion of the hedge no longer be considered effective. We expect the hedge to remain fully effective during the remaining term of the swap. The Bank will pay the counterparty a fixed rate and receive a floating rate based on three month LIBOR. The trust preferred securities changed from fixed rate to floating rate in June 15, 2017. The cash flow hedge has a maturity date of June 15, 2037. In December of 2019, the Company also executed a loan pool hedge of $50.0 million to convert variable rate loans to a fixed rate index for a five year term. This transaction falls under hedge accounting standards and is paired against a pool the Bank’s Libor-based loans. Overall, the new swap only bolsters income in down rate scenarios by a modest degree. We consider the current level of interest rate risk to be moderate but intend to continue looking for market opportunities for further hedging opportunities. The Bank also has interest rate derivative positions to assist with risk management that are not designated as hedging instruments. These derivative positions relate to transactions in which the Bank enters an interest rate swap with a client while at the same time entering into an offsetting interest rate swap with another financial institution. The Bank had $114,000 of cash collateral pledged with one correspondent financial institution to support interest rate swap activity at December 31, 2019; $11.0 million of investment securities were required to be pledged to two correspondent financial institutions. The Bank had $260,000 of cash collateral pledged with one correspondent financial institution to support interest rate swap activity at December 31, 2018; no investment securities were required to be pledged. At December 31, 2019, the notional amount of non-hedging interest rate swaps was $177.9 million with a weighted average maturity of 5.9 years. At December 31, 2018, the notional amount of non-hedging interest rate swaps was $188.9 million with a weighted average maturity of 6.6 years. The Bank offsets derivative assets and liabilities that are subject to a master netting arrangement. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheets as of December 31, were as follows: Fair Value of Derivative Instruments 2019 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swaps 75,774 Other Assets - Other Liabilities 3,150 Total derivatives designated as hedging instruments - 3,150 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 177,872 Other Assets 2,920 Other Liabilities 2,920 Interest rate lock commitments and forward contracts 23,667 Other Assets 250 Other Liabilities - Other contracts 28,176 Other Assets - Other Liabilities 53 Total derivatives not designated as hedging instruments 3,170 2,973 2018 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swaps 25,774 Other Assets - Other Liabilities 58 Total derivatives designated as hedging instruments - 58 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 188,931 Other Assets 672 Other Liabilities 672 Interest rate lock commitments and forward contracts 18,130 Other Assets 159 Other Liabilities - Other contracts 18,155 Other Assets - Other Liabilities 26 Total derivatives not designated as hedging instruments 831 698 Disclosure of the Effect of Fair Value and Cash Flow Hedge Accounting The fair value and cash flow hedge accounting related to derivatives covered under ASC Subtopic 815-20 impacted Accumulated Other Comprehensive Income (“AOCI”) and the Income Statement. The loss recognized in AOCI on derivatives totaled $3.1 million as of December 31, 2019, and a gain in AOCI of $1.2 million as of December 31, 2018. The amount of the loss reclassified from AOCI to interest income or interest expense on the income statement totaled $50,000 and $168,000 for the years ended December 31, 2019, and December 31, 2018, respectively. Credit-risk-related Contingent Features For derivative transactions involving counterparties who are lending customers of the Company, the derivative credit exposure is managed through the normal credit review and monitoring process, which may include collateralization, financial covenants and/or financial guarantees of affiliated parties. Agreements with such customers require that losses associated with derivative transactions receive payment priority from any funds recovered should a customer default and ultimate disposition of collateral or guarantees occur. Credit exposure to broker/dealer counterparties is managed through agreements with each derivative counterparty that require collateralization of fair value gains owed by such counterparties. Some small degree of credit exposure exists due to timing differences between when a gain may occur and the subsequent point in time that collateral is delivered to secure that gain. This is monitored by the Company and procedures are in place to minimize this exposure. Such agreements also require the Company to collateralize counterparties in circumstances wherein the fair value of the derivatives result in loss to the Company. Other provisions of such agreements define certain events that may lead to the declaration of default and/or the early termination of the derivative transaction(s), including the following: · if the Company either defaults or is capable of being declared in default on any of its indebtedness (exclusive of deposit obligations); · if a merger occurs that materially changes the Company's creditworthiness in an adverse manner; or · If certain specified adverse regulatory actions occur, such as the issuance of a Cease and Desist Order, or citations for actions considered Unsafe and Unsound or that may lead to the termination of deposit insurance coverage by the Federal Deposit Insurance Corporation.

Preferred Stock

Preferred Stock	12 Months Ended
	Dec. 31, 2019
Preferred Stock.
Preferred Stock	Note 21: Preferred Stock The Series B preferred stock was issued as part of the Treasury’s Troubled Asset Relief Program and Capital Purchase Program in 2009. Concurrent with issuing the Series B preferred stock in 2009, the Company issued to the Treasury a ten year warrant to purchase 815,339 shares of the Company’s common stock at an exercise price of $13.43 per share. The Company recorded the warrant as equity, and the allocation was based on their relative fair values in accordance with accounting guidance. The fair value was determined for both the Series B preferred stock and the warrant as part of the allocation process in the amounts of $68.2 million and $4.8 million, respectively. In 2014 and 2015, the Company completed redemption of all 73,000 shares of Series B preferred stock issued in 2009. As of December 31, 2018, the only remaining component of the 2009 issuance was the warrant outstanding for 815,339 shares, valued at $4.8 million and carried within stockholders’ equity. Preferred stock of 300,000 shares is authorized but unissued as of December 31, 2019 and 2018. On January 16, 2019, the warrant was exercised; see further disclosures in Note 14: Earnings Per Share, above.

Parent Company Condensed Financ

Parent Company Condensed Financial Information	12 Months Ended
	Dec. 31, 2019
Parent Company Condensed Financial Information
Parent Company Condensed Financial Information	Note 22: Parent Company Condensed Financial Information Condensed Balance Sheets for the years ended December 31, were as follows: 2019 2018 Assets Noninterest bearing deposit with bank subsidiary $ 26,562 $ 9,039 Investment in subsidiaries 352,703 315,252 Other assets 3,981 12,997 Total assets $ 383,246 $ 337,288 Liabilities and Stockholders’ Equity Other short term borrowings $ - $ 4,000 Junior subordinated debentures 57,734 57,686 Senior notes 44,270 44,158 Other liabilities 3,378 2,363 Stockholders’ equity 277,864 229,081 Total liabilities and stockholders' equity $ 383,246 $ 337,288 Condensed Statements of Income for the years ended December 31 were as follows: 2019 2018 2017 Operating Income Cash dividends received from subsidiaries $ 20,000 $ 30,000 $ - Other income 109 106 114 Total operating income 20,109 30,106 114 Operating Expenses Junior subordinated debentures 3,724 3,716 4,002 Senior notes 2,700 2,688 2,689 Other interest expense 13 98 - Other expenses 4,025 4,208 2,639 Total operating expense 10,462 10,710 9,330 Income (loss) before income taxes and equity in undistributed net income of subsidiaries 9,647 19,396 (9,216) Income tax benefit (3,187) (3,355) (16) Income (loss) before equity in undistributed net income of subsidiaries 12,834 22,751 (9,200) Equity in undistributed net income of subsidiaries 26,621 11,261 24,338 Net income available to common stockholders $ 39,455 $ 34,012 $ 15,138 Condensed Statements of Cash Flows for the years ended December 31, were as follows: 2019 2018 2017 Cash Flows from Operating Activities Net Income $ 39,455 $ 34,012 $ 15,138 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed net income of subsidiaries (26,621) (11,261) (24,338) Provision for deferred tax expense (benefit) 4,186 6,697 6,397 Net deferred tax expense due to DTA revaluation - - 3,908 Change in taxes payable 3,896 (1,211) (4,797) Change in other assets - 97 74 Stock-based compensation 2,516 2,257 1,181 Other, net (80) 172 (15) Net cash provided by (used in) operating activities 23,352 30,763 (2,452) Cash Flows from Investing Activities Cash paid for acquisition, net of cash and cash equivalents retained - (47,074) - Net cash used in investing activities - (47,074) - Cash Flows from Financing Activities Net change in other short-term borrowings (4,000) 4,000 - Dividend paid on common stock (1,195) (1,189) (1,184) Purchases of treasury stock (666) (505) (236) Payment of senior note issuance costs - - (42) Proceeds from exercise of stock option 32 33 - Net cash (used in) provided by financing activities (5,829) 2,339 (1,462) Net change in cash and cash equivalents 17,523 (13,972) (3,914) Cash and cash equivalents at beginning of year 9,039 23,011 26,925 Cash and cash equivalents at end of year $ 26,562 $ 9,039 $ 23,011

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2019
Employee Benefit Plans
Employee Benefit Plans	Note 23: Employee Benefit Plans Old Second Bancorp, Inc. Employees 401(k) Savings Plan and Trust The Company sponsors a qualified, tax-exempt defined contribution plan (the “401(k) Plan”) qualifying under section 401(k) of the Internal Revenue Code. Virtually all employees are eligible to participate after meeting certain age and service requirements. Eligible employees are permitted to contribute up to a dollar limit set by law of their compensation to the 401(k) Plan. For the years ended December 31, 2019, and 2018, a discretionary match equal to 100% of the first 3% and 50% of the next 2% was made to participants of the 401(k) Plan. For the year ended December 31, 2017, the Company made a discretionary match equal to 100% of the first 3% contributed by participants of the 401(k) Plan. Participants are 100% vested in the discretionary matching contributions. Participants can choose between several different investment options under the 401(k) Plan, including shares of the Company’s common stock. An additional component of the 401(k) Plan arrangement allows the Company to make annual discretionary profit sharing contributions based on the Company’s profitability in a given year, and on each participant’s annual compensation. The Company elected not to make a discretionary profit sharing contribution for the years end December 31, 2019, 2018 and 2017. The total expense relating to the 401(k) Plan was approximately $1.1 million in both 2019 and 2018 and $785,000 in 2017. Old Second Bancorp, Inc. Voluntary Deferred Compensation Plan for Executives The Company sponsors an executive deferred compensation plan, which is a means by which certain executives may voluntarily defer a portion of their salary or bonus. This plan is an unfunded, nonqualified deferred compensation arrangement. Company obligations under this arrangement as of December 31, 2019 totaled $3.0 million and totaled $2.2 for both December 31, 2018 and 2017, and are included in other liabilities.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)-10K	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Basis of presentation	The consolidated financial statements of the Company include the financial statements of the Bank and its wholly-owned subsidiaries, River Street Advisors, LLC, an investment advisory/management service company, Old Second Affordable Housing Fund, L.L.C., which provides down payment assistance for home ownership to qualified individuals, and Station I, LLC, which holds property acquired by the Bank through foreclosure or in the ordinary course of collecting a debt previously contracted with borrowers. The Company uses the accrual basis of accounting for financial reporting purposes. Certain amounts in prior year financial statements have been reclassified to conform to the 2019 presentation.
Use of Estimates	Use of Estimates – The preparation of consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) and following general practices within the banking industry requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates and assumptions are based on the best available information, actual results could differ from those estimates.
Principles of Consolidation	Principles of Consolidation – The accompanying consolidated financial statements include the accounts and results of operations of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions. Assets held in a fiduciary or agency capacity are not assets of the Company or its subsidiaries and are not included in the consolidated financial statements.
Segment Reporting	Segment Reporting – An operating segment is a component of a business entity that engages in business activity from which it may earn revenues and/or incur expenses. It has operating results that are reviewed regularly by the entity’s chief operating decision maker in order to make decisions about resource allocation and performance assessment, and the segment has discrete financial information available for this assessment. As of December 31, 2019, the Company had one operating segment, which is community banking. Therefore, segment reporting is not required
Cash and Cash Equivalents	Cash and Cash Equivalents – For purposes of the Consolidated Statements of Cash Flows, management has defined cash and cash equivalents to include cash and due from banks, interest-bearing deposits in other banks, and other short-term investments, such as federal funds sold and securities purchased under agreements to resell. The classification of cash and cash equivalents includes those assets held in the form of cash or liquid instruments with an original maturity of 90 days or less.
Securities	Securities – Securities are classified as available-for-sale or held-to-maturity at the time of purchase or transfer. Securities that are classified as available-for-sale are carried at fair value. Unrealized gains and losses, net of related deferred income taxes, are recorded in stockholders’ equity as a separate component of accumulated other comprehensive income (loss). Unrealized gains and losses are not included in the calculation of regulatory capital. Securities held-to-maturity are carried at amortized cost and the discount or premium created at acquisition or in the transfer from available-for-sale is accreted or amortized to the maturity or expected payoff date but not an earlier call. Discounts are accreted into interest income over the estimated life of the related security and premiums are amortized into income to the earlier of the call date or estimated life of the related security using the level yield method. Purchases and sales of securities are recognized on a trade date basis. Realized securities gains or losses are reported in securities gains, net, in the Consolidated Statements of Income. The cost of securities sold is based on the specific identification method. On a quarterly basis, the Company makes an assessment (at the individual security level) to determine whether there have been any events or circumstances indicating that a security with an unrealized loss is other-than-temporarily impaired (“OTTI”). In evaluating OTTI, the Company considers many factors, including the severity and duration of the impairment; the financial condition and near-term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; its ability and intent to hold the security for a period of time sufficient for a recovery in value; and the likelihood that it will be required to sell the security before a recovery in value, which may be at maturity. The amount of the impairment related to other factors is recognized in other comprehensive income (loss) unless management intends to sell the security or believes it is more likely than not that it will be required to sell the security prior to full recovery.
Federal Home Loan Bank and Federal Reserve Bank Stock	Federal Home Loan Bank and Federal Reserve Bank Stock – The Company owns the stock of the Federal Home Loan Bank of Chicago (“FHLBC”) and the Federal Reserve Bank of Chicago (“FRBC”). Both of these entities require the Bank to invest in their nonmarketable stock as a condition of membership. The FHLBC is a governmental sponsored entity. The Bank continues to utilize the various products and services of the FHLBC and management considers this stock to be a long-term investment. FHLBC members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLBC stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. The Company’s ability to redeem the shares owned is dependent on the redemption practices of the FHLBC. The Company records dividends in income on the ex-dividend date. FRBC stock is redeemable at par, and therefore fair value equals cost.
Loans Held-for-Sale	Loans Held-for-Sale – The Bank originates residential mortgage loans, which consist of loan products eligible for sale to the secondary market. Residential mortgage loans eligible for sale in the secondary market are carried at fair market value. The fair value of loans held-for-sale is determined using quoted secondary market prices on similar loans.
Loans	Loans – Loans held-for-investment are carried at the principal amount outstanding, including certain net deferred loan origination fees and costs. Loans purchased as a result of a business combination are recorded at estimated fair value on the acquisition date, with no carryover of the related allowance for loan and lease losses recorded by the acquiree at the time of purchase. These loans are segregated into two classifications upon purchase: 1) purchased non-credit impaired (“non-PCI”) loans, accounted for in accordance with FASB ASC Subtopic 310-20 “ Nonrefundable Fees and Costs ” (“ASC 310-20”), as these loans do not have evidence of credit deterioration since origination. The premiums and discounts created when ASC 310-20 loans are recorded at their fair values at acquisition are recorded to income over the remaining life of the loan as an adjustment to the related loan’s yield; and 2) purchased credit impaired (“PCI”) loans, accounted for under FASB ASC Subtopic 310-30, “ Loans and Debt Securities Acquired with Deteriorated Credit Quality ” (“ASC 310-30”) as they display signs of credit deterioration since origination. Interest income, through accretion of the difference between the carrying value of the loans and the expected cash flows, is recognized on the acquired loans accounted for under ASC 310-30. Interest income on loans is accrued based on principal amounts outstanding. Loan and lease origination fees, commitment fees, and certain direct loan origination costs are deferred and amortized over the life of the related loans or commitments as a yield adjustment. The acquisition adjustment discount related to purchased loans is accreted into interest income over the contractual life of each loan, or is generally taken into income immediately upon payoff or renewal of the loan. Fees related to standby letters of credit, whose ultimate exercise is remote, are amortized into fee income over the estimated life of the commitment. Other credit-related fees are recognized as fee income when earned.
Concentration of Credit Risk	Concentration of Credit Risk – Most of the Company’s business activity is with customers located within Cook, DeKalb, DuPage, Kane, Kendall, LaSalle and Will counties in Illinois. These banking centers surround or are within the Chicago metropolitan area. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy in that market area since the Bank generally makes loans within its market. There are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector.
Lease financing receivables	Lease Financing Receivables – Lease financing receivables are subject to underwriting standards and processes similar to commercial loans. These loans are often secured by equipment or transportation assets, and are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors.
Nonaccrual loans	Nonaccrual Loans – Generally, commercial and consumer loans, as well as loans secured by real estate are placed on nonaccrual status (i) when either principal or interest payments become 90 days or more past due based on contractual terms unless the loan is sufficiently collateralized such that full repayment of both principal and interest is expected and is in the process of collection within a reasonable period or (ii) when an individual analysis of a borrower’s creditworthiness indicates a credit should be placed on nonaccrual status whether or not the loan is 90 days or more past due. When a loan is placed on nonaccrual status, unpaid interest credited to income is reversed. Generally, after the loan is placed on nonaccrual, all debt service payments are applied to the principal on the loan. Nonaccrual loans are returned to accrual status when the financial position of the borrower and other relevant factors indicate there is no longer doubt that the Company will collect all principal and interest due. Commercial, consumer and real estate loans are generally charged-off when deemed uncollectible. A loss is recorded at that time if the net realizable value can be quantified and it is less than the associated principal outstanding.
Troubled Debt Restructurings (TDRs)	Troubled Debt Restructurings (“TDRs”) – A restructuring of debt is considered a TDR when (i) the borrower is experiencing financial difficulties and (ii) the creditor grants a concession, such as forgiveness of principal, reduction of the interest rate, changes in payments, or extension of the maturity, that it would not otherwise consider. Loans are not classified as TDRs when the modification is short-term or results in only an insignificant delay or shortfall in the payments to be received. The Company’s TDRs are determined on a case-by-case basis in connection with ongoing loan collection processes. The Company does not accrue interest on any TDRs unless it believes collection of all principal and interest under the modified terms is reasonably assured. For TDRs to accrue interest, the borrower must demonstrate both some level of past performance and the capacity to perform under the modified terms. Generally, six months of consecutive payment performance by the borrower under the restructured terms is required before TDRs are returned to accrual status. However, the period could vary depending on the individual facts and circumstances of the loan. An evaluation of the borrower’s current creditworthiness is used to assess whether the borrower has the capacity to repay the loan under the modified terms. This evaluation includes an estimate of expected cash flows, evidence of strong financial position, and estimates of the value of collateral, if applicable.
Impaired Loans	Impaired Loans – Impaired loans consist of nonaccrual loans and TDRs (both accruing and on nonaccrual). A loan is considered impaired when it is probable that the Company will be unable to collect all contractual principal and interest due according to the terms of the loan agreement based on current information and events. With the exception of TDRs still accruing interest, loans deemed to be impaired are classified as nonaccrual and are exclusive of smaller homogeneous loans, such as HELOCs, 1-4 family mortgages, and consumer loans.
90-Days or Greater Past Due Loans	90-Days or Greater Past Due Loans – 90-days or greater past due loans are loans with principal or interest payments three months or more past due, but that still accrue interest. The Company continues to accrue interest if it determines these loans are sufficiently collateralized and the process of collection will conclude within a reasonable time period.
Allowance for Loan Losses	Allowance for Loan and Lease Losses (“ALLL”) – The ALLL is calculated according to GAAP standards and is maintained by management at a level believed adequate to absorb estimated losses inherent in the existing loan portfolio. Determination of the ALLL is inherently subjective since it requires significant estimates and management judgment, and includes a level of imprecision given the difficulty of identifying and assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the ultimate adequacy of the ALLL is dependent upon a variety of factors beyond the Company’s direct control, including the performance of the loan portfolio, consideration of current economic trends, changes in interest rates and property values, the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on an analysis that uses historical loss experience, portfolio growth and concentration risk, management and staffing changes, the interpretation of loan risk classifications by regulatory authorities and other credit market factors. While each component of the ALLL is determined separately, the entire balance is available for the entire loan portfolio. Loans deemed to be uncollectible are charged-off against the ALLL while recoveries of amounts previously charged-off are credited to the ALLL. Approved releases from previously established loan loss reserves authorized under our ALLL methodology also reduce the ALLL. Additions to the ALLL are established through the provision for loan and lease losses charged to expense. The ALLL methodology consists of (i) specific reserves established for probable losses on individual loans for which the recorded investment in the loan exceeds the present value of expected future cash flows or the net realizable value of the underlying collateral, if collateral dependent, (ii) a general reserve based on a historical loss analysis that uses credit loss experience for the prior 20 quarters for each loan category, and (iii) the impact of other internal and external qualitative and credit market factors as assessed by management through detailed loan review, ALLL analysis and credit discussions. The Company refined its ALLL methodology in 2017, with implementation of management factor classifications for newer loan portfolios, such as the Company’s purchase of home equity lines of credit (“HELOCs”) in 2017 and the expanded business development company loan portfolio, as these portfolios had not been outstanding long enough to be sufficiently seasoned. In addition, the Company revised the risk weightings for the historical loss factors to allocate an increase in the loss factor applied in the earliest quarter, and a like reduction of the loss factor in the most recent quarter, as management believed the lower charge-off levels in the more recent quarters will likely not continue long-term. The Company refined its ALLL methodology again in 2018, as the Company determined that a minimum threshold of two basis points should be used for those quarters within the historical loss calculation with minimal or no losses incurred. In addition, a base line for reserves was set for economic conditions, past due and classified loans, loan portfolio/ concentrations, general and external factors. These factors are evaluated quarterly by the Bank’s ALLL Committee and the ASC 450 percentages are adjusted according to the overall bias in the individual factors (up, down or neutral). In the first quarter of 2018, these baseline levels were modified to establish floors and ceilings for each management factor. The establishment of floors and ceilings for management factors will allow management to evaluate changes to factors within prescribed guidelines and to remain consistent with factor determination in a stressed scenario, as a ceiling could be applied. The Company continued to enhance its ALLL methodology in 2019, with loan portfolio volume changes supporting revisions to the management factor related to portfolio volumes and concentrations. Lease portfolio growth of $40.9 million in 2019 supported an increase in the management factor related to the changes in the volume and concentrations for leases, and a decline in the construction portfolio of $38.8 million supported a decrease in the same management factor for construction loans. In addition, due to the falling interest rate environment, the management factors for variable rate commercial loans and HELOCs were reduced to become more commensurate with fixed rate commercial loan and HELOC products. Finally, as the purchased HELOC portfolio and the business development loans have been analyzed with a separate management factor for two years within the ALLL calculation, and there have been minimal HELOC charge-offs and no business development losses to date, these management factors were each reduced for the December 31, 2019 calculation. These modifications to the Company’s ALLL methodology are intended to more accurately reflect all portfolio risk, and resulted in a consistent balance for the overall unallocated component of the allowance over the past three years. The unallocated component of the allowance was $503,000 as of December 31, 2019, compared to $537,000 as of December 31, 2018 and $542,000 as of December 31, 2017. All calculations conform to GAAP.
Premises and Equipment	Premises and Equipment – Premises, furniture, equipment, and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation expense is determined by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the asset or the lease term including anticipated renewals. Rates of depreciation are generally based on the following useful lives: buildings, 25 to 40 years; building improvements, 3 to 15 years or longer under limited circumstances; and furniture and equipment, 3 to 10 years. Gains and losses on dispositions are included in other noninterest income in the Consolidated Statements of Income. Maintenance and repairs are charged to operating expenses as incurred, while improvements that conform to definitions of tangible property improvements are capitalized and depreciated over the estimated remaining life.
Other Real Estate Owned ("OREO")	Other Real Estate Owned (“OREO”) – Real estate assets acquired in settlement of loans are recorded at the fair value of the property when acquired, less estimated costs to sell, establishing a new cost basis. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Any deficiency between the net book value and fair value at the foreclosure or deed in lieu date is charged to the ALLL. Any reduction in OREO carrying value within 90 days of transfer to OREO would be charged to the ALLL. If the fair value of the property when acquired, less estimated costs to sell, is greater than the net book value of the loan, a gain on transfer is recorded. If a determination is made more than 90 days after the transfer to OREO that the fair value for the OREO property has declined, an OREO valuation allowance is established for the decrease between the recorded value and the updated fair value less costs to sell. Such declines are included in other noninterest expense in the Consolidated Statements of Income. A subsequent reversal of an OREO valuation adjustment can occur, but the resultant carrying value cannot exceed the cost basis established at transfer of the loan to OREO. Operating costs after acquisition are also expensed.
Mortgage Servicing Rights	Mortgage Servicing Rights – The Bank is also involved in the business of servicing mortgage loans. Servicing activities include collecting principal, interest, and escrow payments from borrowers, making tax and insurance payments on behalf of the borrowers, monitoring delinquencies, executing foreclosure proceedings, and accounting for and remitting principal and interest payments to the investors. Mortgage servicing rights represent the right to a stream of cash flows and an obligation to perform specified residential mortgage servicing activities. Mortgage loans that the Company is servicing for others aggregated to $723.4 million and $711.1 million at December 31, 2019, and 2018, respectively. Mortgage loans that the Company is servicing for others are not included in the consolidated balance sheets. Fees received in connection with servicing loans for others are recognized as earned. Loan servicing costs are charged to expense as incurred. Servicing rights are recognized separately as assets when they are acquired through sales of loans and servicing rights are retained. Servicing rights are initially recorded at fair value with the effect recorded in net gains on sales of mortgage loans in the Consolidated Statements of Income. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Servicing fee income, which is included in the Consolidated Statements of Income as mortgage servicing income, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. Under the fair value measurement method, the Company measures mortgage servicing rights at fair value at each reporting date, reports changes in fair value of servicing assets in earnings in the period in which the changes occur, and includes these changes in mortgage servicing rights mark to market in the Consolidated Statements of Income. The fair values of mortgage servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses.
Bank-Owned Life Insurance ("BOLI")	Bank-Owned Life Insurance (“BOLI”) – BOLI represents life insurance policies on the lives of certain Company employees (both current and former) for which the Company is the sole owner and beneficiary. These policies are recorded as an asset on the Consolidated Balance Sheets at their cash surrender value (“CSV”) or the amount that could be realized. The change in CSV is recorded as an increase in cash surrender value of bank-owned life insurance in the Consolidated Statements of Income in noninterest income. In addition, insurance proceeds received, net of the original premium investment, are recorded as death benefit realized on bank-owned life insurance in the Consolidated Statements of Income in noninterest income.
Goodwill and Core Deposit Intangible Assets	Goodwill and Core Deposit Intangible – Goodwill is the excess of an acquisition’s purchase price over the fair value of identified net assets acquired in an acquisition. Goodwill is not deemed to have definitive life span, and therefore is not amortized, but is subject to annual review for impairment. The annual review performed is qualitative in nature, and factors reviewed include macroeconomic data, industry specific data, current market conditions, and the Company’s overall financial performance. Based on management’s annual review of goodwill as of December 31, 2019, no goodwill impairment was noted. The core deposit intangible (“CDI”) is being amortized on an accelerated method over a ten year estimated useful life. In 2018, CDI of $3.1 million was recorded stemming from the ABC Bank acquisition, which is discussed further in Note 2. As of December 31, 2019, $2.3 million of the ABC Bank CDI remained, which is in addition to the $366,000 of CDI remaining from the Talmer branch purchase. Total CDI amortization expense of $539,000, $387,000 and $96,000 was recorded in 2019, 2018 and 2017, respectively. The expected future annual amortization expense for each of the next five years is approximately $494,000, $459,000, $421,000, $379,000, and $331,000.
Loss Contingencies	Debt Issuance Costs – Costs associated with the issuance of debt are presented in the Consolidated Balance Sheet as a direct reduction from the carrying value of that debt liability. The deferred issuance costs are amortized over the life the related debt instrument, and included within the debt’s interest expense. Loss Contingencies – Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the financial statements.
Wealth Management	Wealth Management – Assets held in a fiduciary or agency capacity for customers are not included in the consolidated financial statements as they are not assets of the Company or its subsidiaries. Fee income is included as a component of noninterest income in the Consolidated Statements of Income.
Advertising Costs	Advertising Costs – All advertising costs incurred by the Company are expensed in the period in which they are incurred.
Equity Incentive Plan	Equity Incentive Plan – Compensation cost is recognized for stock options and restricted stock awards issued to employees based upon the fair value of the awards at the date of grant. A binomial model is utilized to estimate the fair value of stock options, which utilizes assumptions for expected volatilities based on the previous five-year historical volatilities of the Company's common stock. Historical data is used to estimate option exercise rates and post-vesting termination behavior, and the risk-free interest rate for the expected term of the option is based on the Treasury yield curve in effect at the time of grant. The market price of the Company’s common stock at the date of grant is used for restricted stock awards, which include restricted stock units. Compensation cost is recognized over the required service period, generally defined as the vesting period. Once the award is settled, the Company would determine whether the cumulative tax deduction exceeded the cumulative compensation cost recognized in the Consolidated Statement of Income. The cumulative tax deduction would include both the deductions from the dividends and the deduction from the exercise or vesting of the award. If the tax benefit received from the cumulative deductions exceeds the tax effect of the recognized cumulative compensation cost, the excess would be recognized as a credit to income tax expense.
Income Taxes	ncome Taxes – The Company files income tax returns in the U.S. federal jurisdiction, and in the states of Illinois, Indiana and Wisconsin. The provision for income taxes is based on income in the consolidated financial statements, rather than amounts reported on the Company’s income tax return. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Any change in tax rates will be recorded in the period in which the law is enacted. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates that are expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. As of December 31, 2019 and 2018, the Company evaluated tax positions taken for filings with the Internal Revenue Service and all state jurisdictions in which it operates. The Company believes that income tax filing positions will be sustained under examination and does not anticipate any adjustments that would result in a material adverse effect on the Company’s financial condition, results of operations, or cash flows. Accordingly, the Company has not recorded any reserves or related accruals for interest and penalties for uncertain tax positions at December 31, 2019 and 2018. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service from 2016 to 2018, the state of Illinois from 2016 to 2018, and the states of Wisconsin and Indiana from 2009 to 2018.
Earnings Per Common Share ("EPS")	Earnings Per Common Share (“EPS”) – Basic EPS is computed by dividing net income applicable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income applicable to common stockholders by the weighted-average number of common shares outstanding plus the number of additional common shares that would have been outstanding if the dilutive potential shares had been issued. The Company’s potential common shares represent shares issuable under its long-term incentive compensation plans and under the common stock warrant originally issued to preferred stockholders. Such common stock equivalents are computed based on the treasury stock method using the average market price for the period.
Treasury Stock	Treasury Stock – Treasury stock acquired is recorded at cost and is carried as a reduction of stockholders’ equity in the Consolidated Balance Sheets. Treasury stock issued is valued based on the “last in, first out” inventory method. The difference between the consideration received upon issuance and the carrying value is charged or credited to additional paid-in capital.
Derivative Financial Instruments	Derivative Financial Instruments – The Company occasionally enters into derivative financial instruments as part of its interest rate risk management strategies. These derivative financial instruments consist primarily of interest rate swaps. The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and whether the Company has elected to designate a derivative as a hedging relationship and apply hedge accounting. A further consideration involves a determination on whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. If it is determined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued, and the adjustment to fair value of the derivative instrument is recorded in earnings. For a derivative used to hedge changes in cash flows associated with forecasted transactions, the gain or loss on the effective portion of the derivative is deferred and reported as a component of accumulated other comprehensive income, which is a component of stockholders’ equity, until such time the hedged transaction affects earnings. For derivative instruments not accounted for as hedges, changes in fair value are recognized in noninterest income/expense. Counterparty risk with loan customers is managed through loan covenant agreements and, as such, does not have a significant impact on the fair value of the swaps. Counterparty risk with other banks is managed through bilateral collateralization agreements. Deferred gains and losses from derivatives not accounted for as hedges and that are terminated are amortized over the shorter of the original remaining term of the derivative or the remaining life of the underlying asset or liability.
Comprehensive Income (Loss)	Comprehensive Income – Comprehensive income is the total of reported earnings for all other revenues, expenses, gains, and losses that are not reported in earnings under GAAP. The Company includes the following items, net of tax, in other comprehensive income in the Consolidated Statements of Comprehensive Income: (i) changes in unrealized gains or losses on securities available-for-sale, (ii) changes in unrealized gains or losses on securities held-to-maturity established upon transfer from securities available-for-sale and (iii) the effective portion of a derivative used to hedge cash flows.
Recent Accounting Pronouncements	Recent Accounting Pronouncements – The following is a summary of recent accounting pronouncements that have impacted or could potentially affect the Company : In February 2016, the FASB issued ASU No. 2016-02 “ Leases (Topic 842) .” This ASU was issued to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. One key revision from prior guidance was to include operating leases within assets and liabilities recorded; another revision was to create a new model to follow for sale-leaseback transactions. The impact of this pronouncement primarily affected lessees, as virtually all of their assets will be recognized on the balance sheet, by recording a right of use asset and lease liability. This pronouncement is effective for fiscal years beginning after December 15, 2018. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements ” which provided additional guidance on the transition method, including application as a cumulative-effect adjustment to equity and practical expedients to use when accounting for lease components. The Company adopted this standard as of January 1, 2019, and recorded right of use assets of $817,000 with a like lease liability, recorded to other assets and other liabilities, respectively. As of December 31, 2019, the right of use assets and lessee lease liability both totaled $3.3 million. The Company also recorded leases receivable related to lessor leases of $174,000 as of January 1, 2019, which is within other assets, with a like entry to lease liabilities for the lessor position, recorded within other liabilities. These tenant leases receivable balances and lessor lease liabilities both totaled $77,000 as of December 31, 2019. There was no impact to equity for the adoption of this standard on a modified retrospective basis. In June 2016, the FASB issued ASU No. 2016-13 “ Measurement of Credit Losses on Financial Instruments (Topic 326)” , also known as Current Expected Credit Losses, or “CECL”. ASU 2016-13 was issued to provide financial statement users with more useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date to enhance the decision making process. The new methodology to be used should reflect expected credit losses based on relevant vintage historical information, supported by reasonable forecasts of projected loss given defaults, which will affect the collectability of the reported amounts. This new methodology will also require available-for-sale debt securities to have a credit loss recorded through an allowance rather than write-downs through an other than temporary impairment analysis. In addition, an allowance will be established for the credit risk related to unfunded commitments. ASU 2016-13 is effective for financial statements issued for fiscal years beginning after December 15, 2019, and was adopted as of January 1, 2020, by the Company. Upon issuance of ASU 2016-13, the Company set up a CECL committee, with the goal of establishing a timeline for CECL data collection, implementation, parallel runs, testing, and model validation. The Company has implemented a software solution provided by a third party vendor to assist in the determination of the allowance for credit losses (“ACL”), and the third party validation process was completed in the fourth quarter of 2019. The Company has accumulated historical data by loan pools and collateral classifications. All historical data, model assumptions and calculation parameters were analyzed by the third party validation team, and management has made enhancements to the software model used based on their recommendations. Our approach for estimating expected life-time credit losses for loans includes the following components: · An initial forecast period of one year for all portfolio segments and off-balance-sheet credit exposures. This period reflects management’s expectation of losses based on forward-looking economic scenarios over that time. · A historical reversion loss forecast period covering the remaining contractual life, adjusted for prepayments, by portfolio segment based on the historical loss rate of loans within those segments. · The initial loss forecast period and historical reversion loss rate is based on economic conditions at the measurement date. · We primarily utilized the static pool and migration analysis methods to estimate credit losses. Such methods would obtain estimated life-time credit losses using the conceptual components described above. Based on our portfolio composition at December 31, 2019, and the current economic environment, we expect an overall increase in our ACL for loans and leases of approximately $4.0 to $6.0 million. In addition, a reserve for unfunded commitments has been established of approximately $1.5 to $2.5 million. Approximately $2.5 million of the increase to the ACL results from the transfer of the non-accretable purchase accounting adjustments on purchase credit impaired loans. As a result of the adoption of this new standard on January 1, 2020, we expect a reduction to retained earnings of approximately $3.0 to $5.0 million. The initial impact estimated by management and subsequent reporting periods is highly dependent on credit quality, macroeconomic forecasts and conditions, as well as the composition of our loans and available-for-sale securities portfolio. The ultimate ACL and retained earnings transition adjustment may fall outside of management’s estimated increase due to a material change in management’s macroeconomic forecast, loan composition and other management adjustments used in calculating the ACL upon the adoption of CECL. The Company is finalizing internal control processes and disclosure documentation related to adoption of this standard, which will be completed prior to the end of the first quarter of 2020. In October 2018 the FASB issued ASU No. 2018-16 “ Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting. ” ASU 2018-16 adds the SOFR overnight index swap rate to the list of United States (U.S.) benchmark rates eligible for hedge accounting purposes, which is the fourth rate permissible to be used as a U.S. benchmark rate. This guidance is effective for annual and interim periods beginning after December 15, 2018, and we do not expect this guidance to have a material impact on the financial condition or liquidity of the Company.
Subsequent Events	Subsequent Events On January 21, 2020, the Company’s Board of Directors declared a cash dividend of $0.01 per share payable on February 10, 2020, to stockholders of record as of January 31, 2020. On January 28, 2020, the Company issued a redemption notice with respect to its 7.80% subordinated debentures due June 30, 2033 (the “Subordinated Debentures”) relating to the outstanding 7.80% cumulative trust preferred securities (NASDAQ: OSBCP) (the “Trust Securities”) issued by Old Second Capital Trust I (“Trust I”), which are guaranteed on a subordinated basis by the Company. An aggregate principal amount of Subordinated Debentures of $32,604,000 was redeemed on March 2, 2020, plus accrued and unpaid interest through the redemption date. Also on March 2, 2020 all of the outstanding Trust Securities were redeemed at a redemption price of $10.00 per Trust Security, which reflects 100% of the liquidation amount, plus accrued and unpaid distributions through the redemption date. In connection with the redemption, the Trust Securities were delisted from The Nasdaq Stock Market.
Mortgage Banking Derivatives
Summary of Significant Accounting Policies
Derivative Financial Instruments	Mortgage Banking Derivatives – As part of the ongoing residential mortgage business, the Company enters into mortgage banking derivatives such as forward contracts and interest rate lock commitments. The derivatives and loans held-for-sale are carried at fair value with the changes in fair value recorded in current earnings. The net gain or loss on mortgage banking derivatives is included in net gains on sales of loans in the Consolidated Statements of Income .
Commercial
Summary of Significant Accounting Policies
Loans	Commercial Loans – Such credits typically comprise working capital loans, loans for physical asset expansion, asset acquisition loans and other commercial and industrial business loans. Loans to closely held businesses will generally be guaranteed in full or for a meaningful amount by the businesses’ major owners. Commercial loans are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Minimum standards and underwriting guidelines have been established for all commercial loan types.
Real estate - commercial
Summary of Significant Accounting Policies
Loans	Lease Financing Receivables – Lease financing receivables are subject to underwriting standards and processes similar to commercial loans. These loans are often secured by equipment or transportation assets, and are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Real Estate - Commercial Loans – Real estate - commercial loans are subject to underwriting standards and processes similar to commercial and industrial loans. These are loans secured by mortgages on real estate collateral. Commercial real estate loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the property. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type.
Real estate - residential
Summary of Significant Accounting Policies
Loans	Real Estate - Residential Loans – These are loans that are extended to purchase or refinance 1-4 family residential dwellings, or to purchase or refinance vacant lots intended for the construction of a 1-4 family home. Residential real estate loans are considered homogenous in nature. Homes may be the primary or secondary residence of the borrower or may be investment properties of the borrower.
Consumer
Summary of Significant Accounting Policies
Loans	Home Equity Lines of Credit (“HELOCs”) – These are lines of credit that are extended to refinance 1-4 family residential dwellings, or to finance the borrower’s needs and collateralized by the borrower’s residence. These lines may be fixed or variable in nature, and the home serving as collateral may also have a first lien outstanding. Consumer Loans – Consumer loans include loans extended primarily for consumer and household purposes. These also include overdrafts and other items not captured by the definitions above.
Construction Loans | Real estate - commercial
Summary of Significant Accounting Policies
Loans	Real Estate - Construction Loans – The Company defines real estate - construction loans as loans where the loan proceeds are controlled by the Company and used exclusively for the improvement or development of real estate in which the Company holds a mortgage. Due to the inherent risk in this type of loan, they are subject to other industry specific policy guidelines outlined in the Company’s Credit Risk Policy and are monitored closely.

Acquisitions (Tables)

Acquisitions (Tables)	12 Months Ended
	Dec. 31, 2019
Acquisitions
Summary of acquisition	GCFC/ABC Bank Acquisition Summary As of Date of Acquisition April 20, 2018 Assets Cash and due from banks $ 6,669 Interest bearing deposits with financial institutions 500 Securities available-for-sale, at fair value 72,091 Federal funds sold 4,300 FHLBC stock 1,549 Loans 227,594 Premises and equipment 5,339 Other real estate owned 401 Goodwill and core deposit intangible 13,280 Deferred tax assets, net 3,459 Other assets 1,767 Total assets $ 336,949 Liabilities Noninterest bearing demand $ 58,005 Savings, NOW and money market 91,494 Time 98,999 Total deposits 248,498 Securities sold under repurchase agreements 5,623 Other short-term borrowings 10,875 Notes payable and other borrowings 23,367 Other liabilities 1,406 Total liabilities 289,769 Cash consideration paid 47,180 Total Liabilities Assumed and Cash Consideration Paid for Acquisition $ 336,949
Schedule of Acquired Loans as of Acquisition Date	April 20, 2018 December 31, 2019 ABC Bank Acquired Loans PCI Non-PCI PCI Non-PCI Fair Value $ 11,360 $ 216,234 $ 8,601 $ 126,482 Contractually required principal and interest payments 19,447 220,308 13,254 127,630 Best estimate of contractual cash flows not expected to be collected 6,537 2,511 3,970 500 Best estimate of contractual cash flows expected to be collected 12,910 217,797 9,284 127,130

Securities (Tables)

Securities (Tables)	12 Months Ended
	Dec. 31, 2019
Securities
Schedule of amortized cost and fair value of the securities portfolio and corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss	Gross Gross Amortized Unrealized Unrealized Fair 2019 Cost Gains Losses Value Securities available-for-sale U.S. Treasury $ 4,010 $ 26 $ - $ 4,036 U.S. government agencies 8,502 - (165) 8,337 U.S. government agencies mortgage-backed 16,164 443 (19) 16,588 States and political subdivisions 240,399 11,207 (2,431) 249,175 Collateralized mortgage obligations 57,059 963 (38) 57,984 Asset-backed securities 82,114 617 (887) 81,844 Collateralized loan obligations 66,898 29 (243) 66,684 Total securities available-for-sale $ 475,146 $ 13,285 $ (3,783) $ 484,648 Gross Gross Amortized Unrealized Unrealized Fair 2018 Cost Gains Losses Value Securities available-for-sale U.S. Treasury $ 4,006 $ - $ (83) $ 3,923 U.S. government agencies 11,112 - (161) 10,951 U.S. government agencies mortgage-backed 14,407 45 (377) 14,075 States and political subdivisions 277,112 1,916 (4,961) 274,067 Collateralized mortgage obligations 66,494 79 (2,144) 64,429 Asset-backed securities 108,574 1,165 (225) 109,514 Collateralized loan obligations 65,162 24 (897) 64,289 Total securities available-for-sale $ 546,867 $ 3,229 $ (8,848) $ 541,248
Schedule of fair value, amortized cost and weighted average yield of debt securities by contractual maturity along with securities not due at a single maturity date, primarily mortgage-backed securities (MBS), asset-backed securities, and collateralized loan obligations	Weighted Amortized Average Fair Securities available-for-sale Cost Yield Value Due in one year or less $ 509 2.03 % $ 510 Due after one year through five years 6,297 2.11 6,411 Due after five years through ten years 4,727 3.49 5,076 Due after ten years 241,378 3.02 249,551 252,911 3.00 261,548 Mortgage-backed and collateralized mortgage obligations 73,223 3.28 74,572 Asset-backed securities 82,114 2.99 81,844 Collateralized loan obligations 66,898 4.28 66,684 Total securities available-for-sale $ 475,146 3.22 % $ 484,648
Schedule of amortized cost and fair value of securities that exceed 10% of stockholders equity	December 31, 2019 Amortized Fair Issuer Cost Value GCO Education Loan Funding Corp $ 27,873 $ 27,470 Towd Point Mortgage Trust 33,551 34,322
Schedule of securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position	Less than 12 months 12 months or more 2019 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. government agencies - $ - $ - 4 $ 165 $ 8,337 4 $ 165 $ 8,337 U.S. government agencies mortgage-backed 3 10 3,018 2 9 843 5 19 3,861 States and political subdivisions 6 1,665 41,043 2 766 6,593 8 2,431 47,636 Collateralized mortgage obligations 2 26 9,054 2 12 1,209 4 38 10,263 Asset-backed securities 4 839 54,540 1 48 3,238 5 887 57,778 Collateralized loan obligations 4 62 21,927 4 181 25,020 8 243 46,947 Total securities available-for-sale 19 $ 2,602 $ 129,582 15 $ 1,181 $ 45,240 34 $ 3,783 $ 174,822 Less than 12 months 12 months or more 2018 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. Treasuries - $ - $ - 1 $ 83 $ 3,923 1 $ 83 $ 3,923 U.S. government agencies 3 100 7,385 1 61 3,566 4 161 10,951 U.S. government agencies mortgage-backed - - - 11 377 11,439 11 377 11,439 States and political subdivisions 4 126 17,713 33 4,835 110,326 37 4,961 128,039 Collateralized mortgage obligations 2 309 15,211 10 1,835 43,687 12 2,144 58,898 Asset-backed securities - - - 4 225 16,473 4 225 16,473 Collateralized loan obligations 7 721 46,547 1 176 7,824 8 897 54,371 Total securities available-for-sale 16 $ 1,256 $ 86,856 61 $ 7,592 $ 197,238 77 $ 8,848 $ 284,094
Schedule of proceeds from sale and gross realized gains and losses on sale of securities	Years ended December 31, Securities available-for-sale 2019 2018 2017 Proceeds from sales of securities $ 191,298 $ 94,663 $ 232,462 Gross realized gains on securities 5,521 369 2,367 Gross realized losses on securities (1,010) (9) (1,893) Net realized gains $ 4,511 $ 360 $ 474 Income tax expense on net realized gains $ (1,267) $ (100) $ (198) Effective tax rate applied 28.1 % 27.8 % 41.8 %

Loans (Tables)

Loans (Tables)	12 Months Ended
	Dec. 31, 2019
Loans
Schedule of major classifications of loans	2019 2018 Commercial $ 332,842 $ 314,323 Leases 119,751 78,806 Real estate - commercial 865,599 820,941 Real estate - construction 69,617 108,390 Real estate - residential 396,901 407,068 HELOC 123,457 140,442 Other 1 12,258 14,439 Total loans, excluding deferred loan costs and PCI loans 1,920,425 1,884,409 Net deferred loan costs 1,786 1,653 Total loans, excluding PCI loans 1,922,211 1,886,062 PCI loans, net of purchase accounting adjustments 8,601 10,965 Total loans $ 1,930,812 $ 1,897,027 1 The “Other” class includes consumer loans and overdrafts.
Schedule of aged analysis of past due loans by class of loans	Aged analysis of past due loans by class of loans as of December 31, were as follows: Recorded Investment 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and 2019 Past Due Past Due Due Due Current Nonaccrual Total Loans Accruing Commercial $ 1,271 $ 925 $ 2,103 $ 4,299 $ 328,399 $ 144 $ 332,842 $ 2,132 Leases 362 - 81 443 118,979 329 119,751 128 Real estate - commercial Owner occupied general purpose 1,725 686 - 2,411 146,323 792 149,526 - Owner occupied special purpose 512 340 - 852 173,346 4,388 178,586 - Non-owner occupied general purpose 626 95 343 1,064 317,923 549 319,536 348 Non-owner occupied special purpose - - - - 146,483 - 146,483 - Retail properties - - - - 52,930 1,146 54,076 - Farm 232 - - 232 17,160 - 17,392 - Real estate - construction Homebuilder - - - - 5,300 - 5,300 - Land - - - - 12,379 - 12,379 - Commercial speculative - - - - 37,571 - 37,571 - All other 26 - - 26 14,248 93 14,367 - Real estate - residential Investor 141 125 - 266 70,051 788 71,105 - Multi-family 10 1,700 - 1,710 187,995 68 189,773 - Owner occupied 3,450 1,351 - 4,801 128,650 2,572 136,023 - HELOC 735 50 18 803 121,110 1,544 123,457 20 Other 1 28 - - 28 13,997 19 14,044 - Total, excluding PCI loans $ 9,118 $ 5,272 $ 2,545 $ 16,935 $ 1,892,844 $ 12,432 $ 1,922,211 $ 2,628 PCI loans, net of purchase accounting adjustments 261 - - 261 5,377 2,963 8,601 - Total $ 9,379 $ 5,272 $ 2,545 $ 17,196 $ 1,898,221 $ 15,395 $ 1,930,812 $ 2,628 Recorded Investment 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and 2018 Past Due Past Due Due Due Current Nonaccrual Total Loans Accruing Commercial $ 58 $ - $ 352 $ 410 $ 313,913 $ - $ 314,323 $ 361 Leases - - - - 78,806 - 78,806 - Real estate - commercial Owner occupied general purpose 1,768 - 33 1,801 160,892 1,579 164,272 36 Owner occupied special purpose 826 135 - 961 192,426 395 193,782 - Non-owner occupied general purpose 2,832 203 - 3,035 286,115 4,236 293,386 - Non-owner occupied special purpose - - - - 106,036 3,099 109,135 - Retail properties - 620 - 620 45,968 - 46,588 - Farm - - - - 13,778 - 13,778 - Real estate - construction Homebuilder - - - - 5,102 - 5,102 - Land 266 - - 266 2,478 - 2,744 - Commercial speculative - - 350 350 55,060 - 55,410 355 All other - - - - 45,028 106 45,134 - Real estate - residential Investor 801 156 - 957 69,148 353 70,458 - Multi-family 545 - 179 724 195,504 - 196,228 180 Owner occupied 1,241 705 - 1,946 135,360 3,076 140,382 - HELOC 775 - - 775 138,801 866 140,442 - Other 1 53 5 3 61 16,000 31 16,092 3 Total, excluding PCI loans $ 9,165 $ 1,824 $ 917 $ 11,906 $ 1,860,415 $ 13,741 $ 1,886,062 $ 935 PCI loans, net of purchase accounting adjustments 1,452 - - 1,452 7,248 2,265 10,965 - Total $ 10,617 $ 1,824 $ 917 $ 13,358 $ 1,867,663 $ 16,006 $ 1,897,027 $ 935 1 The “Other” class includes consumer loans, overdrafts and net deferred costs.
Schedule of credit quality indicators by class of loans	2019 Special Pass Mention Substandard 2 Doubtful Total Commercial $ 307,948 $ 13,206 $ 11,688 $ - $ 332,842 Leases 119,045 377 329 - 119,751 Real estate - commercial Owner occupied general purpose 144,292 2,967 2,267 - 149,526 Owner occupied special purpose 171,444 2,663 4,479 - 178,586 Non-owner occupied general purpose 315,340 416 3,780 - 319,536 Non-owner occupied special purpose 142,958 3,525 - - 146,483 Retail Properties 52,342 588 1,146 - 54,076 Farm 15,155 1,027 1,210 - 17,392 Real estate - construction Homebuilder 5,300 - - - 5,300 Land 12,379 - - - 12,379 Commercial speculative 37,571 - - - 37,571 All other 14,105 - 262 - 14,367 Real estate - residential Investor 69,715 - 1,390 - 71,105 Multi-Family 187,560 1,710 503 - 189,773 Owner occupied 132,258 134 3,631 - 136,023 HELOC 121,476 12 1,969 - 123,457 Other 1 13,685 - 359 - 14,044 Total, excluding PCI loans $ 1,862,573 $ 26,625 $ 33,013 $ - $ 1,922,211 PCI loans, net of purchase accounting adjustments 573 261 7,767 - 8,601 Total $ 1,863,146 $ 26,886 $ 40,780 $ - $ 1,930,812 2018 Special Pass Mention Substandard 2 Doubtful Total Commercial $ 305,993 $ 8,193 $ 137 $ - $ 314,323 Leases 78,806 - - - 78,806 Real estate - commercial Owner occupied general purpose 157,334 1,660 5,278 - 164,272 Owner occupied special purpose 186,218 3,429 4,135 - 193,782 Non-owner occupied general purpose 284,818 202 8,366 - 293,386 Non-owner occupied special purpose 104,526 1,510 3,099 - 109,135 Retail Properties 44,805 - 1,783 - 46,588 Farm 11,307 1,249 1,222 - 13,778 Real estate - construction Homebuilder 5,102 - - - 5,102 Land 2,744 - - - 2,744 Commercial speculative 55,410 - - - 55,410 All other 42,524 - 2,610 - 45,134 Real estate - residential Investor 69,242 - 1,216 - 70,458 Multi-Family 195,249 - 979 - 196,228 Owner occupied 135,858 - 4,524 - 140,382 HELOC 138,553 - 1,889 - 140,442 Other 1 16,061 - 31 - 16,092 Total, excluding PCI loans $ 1,834,550 $ 16,243 $ 35,269 $ - $ 1,886,062 PCI loans, net of purchase accounting adjustments 907 2,906 7,152 - 10,965 Total $ 1,835,457 $ 19,149 $ 42,421 $ - $ 1,897,027 1 The “Other” class includes consumer, overdrafts and net deferred costs. 2 The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans.
Schedule of impaired loans by class of loan	Impaired loans, which include nonaccrual loans and troubled debt restructurings, by class of loan as of December 31, were as follows: 2019 2018 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded Commercial $ - $ - $ - $ - $ - $ - Leases 70 73 - - - - Commercial real estate Owner occupied general purpose 861 915 - 1,659 1,782 - Owner occupied special purpose 1,573 2,069 - 395 530 - Non-owner occupied general purpose 444 471 - 1,138 1,159 - Non-owner occupied special purpose - - - - - - Retail properties 1,146 1,183 - - - - Farm - - - - - - Construction Homebuilder - - - - - - Land - - - - - - Commercial speculative - - - - - - All other 93 132 - 49 73 - Residential Investor 872 1,022 - 353 459 - Multi-Family 68 68 - - - - Owner occupied 2,924 4,415 - 3,359 4,882 - HELOC 1,394 1,866 - 884 1,003 - Other 1 2 3 - 7 7 - Total impaired loans with no recorded allowance 9,447 12,217 - 7,844 9,895 - With an allowance recorded Commercial 144 147 93 - - - Leases 259 259 100 - - - Commercial real estate Owner occupied general purpose 106 106 1 396 396 3 Owner occupied special purpose 2,815 2,815 815 - - - Non-owner occupied general purpose 159 170 14 3,098 4,038 97 Non-owner occupied special purpose - - - 3,099 3,575 139 Retail properties - - - - - - Farm - - - - - - Construction Homebuilder - - - - - - Land - - - - - - Commercial speculative - - - - - - All other - - - 57 58 1 Residential Investor 787 787 10 808 808 4 Multi-Family - - - - - - Owner occupied 3,249 3,251 40 3,676 3,679 46 HELOC 1,034 1,035 56 1,357 1,357 49 Other 1 17 19 6 24 25 13 Total impaired loans with a recorded allowance 8,570 8,589 1,135 12,515 13,936 352 Total impaired loans, excluding PCI loans $ 18,017 $ 20,806 $ 1,135 $ 20,359 $ 23,831 $ 352 PCI loans, net of purchase accounting adjustments 2,624 4,686 77 - - - Total impaired loans $ 20,641 $ 25,492 $ 1,212 $ 20,359 $ 23,831 $ 352 1 The “Other” class includes consumer loans and overdraft. Average recorded investment and interest income recognized on impaired loans by class of loan for the years ending December 31, were as follows: Year Ended Year Ended Year Ended December 31, 2019 December 31, 2018 December 31, 2017 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized With no related allowance recorded Commercial $ - $ - $ - $ - $ 120 $ - Lease 35 - 89 - 272 - Commercial real estate Owner occupied general purpose 1,260 6 1,057 8 1,168 - Owner occupied special purpose 984 - 369 - 364 - Non-owner occupied general purpose 791 - 1,150 - 1,453 - Non-owner occupied special purpose - - - - 507 - Retail properties 573 - 541 - 1,130 - Farm - - - - - - Construction Homebuilder - - - - - - Land - - - - - - Commercial speculative - - - - 37 - All other 71 - 125 - 204 - Residential Investor 613 8 362 - 1,106 - Multi-Family 34 - 2,362 - 2,362 - Owner occupied 3,141 43 4,283 39 7,516 44 HELOC 1,139 5 1,005 1 1,804 1 Other 1 5 - 7 - 4 - Total impaired loans with no recorded allowance 8,646 62 11,350 48 18,047 45 With an allowance recorded Commercial 72 - - - - - Leases 129 - - - - - Commercial real estate Owner occupied general purpose 251 13 198 29 - - Owner occupied special purpose 1,408 - - - - - Non-owner occupied general purpose 1,628 4 1,549 - 123 - Non-owner occupied special purpose 1,550 - 1,549 - - - Retail properties - - - - - - Farm - - - - - - Construction Homebuilder - - - - - - Land - - - - - - Commercial speculative - - - - - - All other 28 - 29 - - - Residential Investor 798 44 818 43 414 43 Multi-Family - - - - - - Owner occupied 3,462 156 3,560 150 2,123 123 HELOC 1,196 52 1,171 56 493 35 Other 1 20 - 12 - - - Total impaired loans with a recorded allowance 10,542 269 8,886 278 3,153 201 Total impaired loans, excluding PCI loans $ 19,188 $ 331 $ 20,236 $ 326 $ 21,200 $ 246 PCI loans, net of purchase accounting adjustments 1,312 132 - - - - Total impaired loans $ 20,500 $ 463 $ 20,236 $ 326 $ 21,200 $ 246 1 The “Other” class includes consumer loans and overdrafts.
Schedule of TDRs modified during the period by type of modification	Loans that were modified during the period are summarized as follows: TDR Modifications Year Ended December 31, 2019 # of Pre-modification Post-modification contracts recorded investment recorded investment Troubled debt restructurings Real estate - commercial Owner occupied general purpose Deferral 1 1 $ 421 $ 418 Non-owner occupied general purpose Other 2 1 58 54 Retail properties Other 2 1 1,159 1,146 Real estate - residential Owner occupied HAMP 3 3 399 293 HELOC Other 2 1 39 38 Total 7 $ 2,076 $ 1,949 TDR Modifications Year Ended December 31, 2018 # of Pre-modification Post-modification contracts recorded investment recorded investment Troubled debt restructurings Real estate - commercial Owner occupied general purpose Other 2 1 $ 427 $ 396 Owner occupied special purpose Other 2 1 110 46 Real estate - construction All other HAMP 3 1 58 56 Real estate - residential Owner occupied HAMP 3 4 502 443 Other 2 1 34 29 HELOC HAMP 3 3 117 115 Rate 4 1 24 24 Other 2 9 622 600 Total 21 $ 1,894 $ 1,709 1 Deferral: Refers to the deferral of principal 2 Other: Change of terms from bankruptcy court 3 HAMP: Home Affordable Modification Program 4 Rate: Refers to interest rate reduction
Schedule of accretable discount on purchased loans	Accretable Discount - Non-PCI Loans Accretable Discount - PCI Loans Non-Accretable Discount - PCI Loans Total Beginning balance, January 1, 2019 $ 1,867 $ 1,099 $ 5,969 $ 8,935 Accretion (1,050) (413) (606) (2,069) Charge-offs - (170) (1,387) (1,557) Transfer - 6 (6) - Ending balance, December 31, 2019 $ 817 $ 522 $ 3,970 $ 5,309 Accretable Discount - Non-PCI Loans Accretable Discount - PCI Loans Non-Accretable Discount - PCI Loans Total Beginning balance, January 1, 2018 $ 835 $ - $ - $ 835 Purchases 3,182 1,551 6,536 11,269 Accretion (1,777) (424) (434) (2,635) Transfer (373) (28) (133) (534) Ending balance, December 31, 2018 $ 1,867 $ 1,099 $ 5,969 $ 8,935
Schedule of loans to principal officers, directors, and their affiliates, made in the ordinary course of business	2019 2018 Beginning balance $ 1,417 $ 1,524 New loans 635 89 Repayments and other reductions (1,025) (196) Change in related party status (64) - Ending balance $ 963 $ 1,417

Allowance for Loan Losses (Tabl

Allowance for Loan Losses (Tables)	12 Months Ended
	Dec. 31, 2019
Allowance for Loan Losses
Schedule of changes in the allowance for loan losses by segment of loans based on method of impairment	Changes in the ALLL by segment of loans based on method of impairment for the year ended December 31, 2019, were as follows: Real Estate Real Estate Real Estate Allowance for loan and lease losses: Commercial Leases Commercial Construction Residential HELOC Other 1 Total Beginning balance $ 2,832 $ 734 $ 10,470 $ 969 $ 1,931 $ 1,449 $ 621 $ 19,006 Charge-offs 109 49 1,019 9 118 338 409 2,051 Recoveries 74 - 684 1 103 172 200 1,234 Provision (Release) 218 577 1,040 (448) 99 (111) 225 1,600 Ending balance $ 3,015 $ 1,262 $ 11,175 $ 513 $ 2,015 $ 1,172 $ 637 $ 19,789 Ending balance: Individually evaluated for impairment $ 93 $ 100 $ 830 $ - $ 50 $ 56 $ 6 $ 1,135 Ending balance: Collectively evaluated for impairment 2,922 1,162 10,285 513 1,965 1,116 614 18,577 Ending balance: Acquired and accounted for ASC 310-30 - - 60 - - - 17 77 Total ending allowance balance $ 3,015 $ 1,262 $ 11,175 $ 513 $ 2,015 $ 1,172 $ 637 $ 19,789 Loans: Ending balance: Individually evaluated for Impairment $ 144 $ 329 $ 7,104 $ 93 $ 7,900 $ 2,428 $ 19 $ 18,017 Ending balance: Collectively evaluated for impairment 332,698 119,422 858,495 69,524 389,001 121,029 14,025 1,904,194 Ending balance: Acquired and accounted for ASC 310-30 - - 3,420 600 4,581 - - 8,601 Total ending loans balance $ 332,842 $ 119,751 $ 869,019 $ 70,217 $ 401,482 $ 123,457 $ 14,044 $ 1,930,812 Changes in the ALLL by segment of loans based on method of impairment for the year ended December 31, 2018, were as follows: Real Estate Real Estate Real Estate Allowance for loan and lease losses: Commercial Leases Commercial Construction Residential HELOC Other 1 Total Beginning balance $ 2,453 $ 692 $ 9,522 $ 923 $ 1,846 $ 1,446 $ 579 $ 17,461 Charge-offs 41 13 1,548 (16) (45) 147 409 2,097 Recoveries 157 - 447 35 1,146 364 265 2,414 Provision (Release) 263 55 2,049 (5) (1,106) (214) 186 1,228 Ending balance $ 2,832 $ 734 $ 10,470 $ 969 $ 1,931 $ 1,449 $ 621 $ 19,006 Ending balance: Individually evaluated for impairment $ - $ - $ 239 $ 1 $ 50 $ 49 $ 13 $ 352 Ending balance: Collectively evaluated for impairment 2,832 734 10,231 968 1,881 1,400 608 18,654 Ending balance: Acquired and accounted for ASC 310-30 - - - - - - - - Total ending allowance balance $ 2,832 $ 734 $ 10,470 $ 969 $ 1,931 $ 1,449 $ 621 $ 19,006 Loans: Ending balance: Individually evaluated for impairment $ - $ - $ 9,785 $ 106 $ 8,196 $ 2,241 $ 31 $ 20,359 Ending balance: Collectively evaluated for impairment 314,323 78,806 811,156 108,284 398,872 138,201 16,061 1,865,703 Ending balance: Acquired and accounted for ASC 310-30 - - 4,182 745 6,038 - - 10,965 Total ending loan balance $ 314,323 $ 78,806 $ 825,123 $ 109,135 $ 413,106 $ 140,442 $ 16,092 $ 1,897,027 Changes in the ALLL by segment of loans based on method of impairment for the year ended December 31, 2017, were as follows: Real Estate Real Estate Real Estate Allowance for loan and lease losses: Commercial Leases Commercial Construction Residential HELOC Other 1 Total Beginning balance $ 1,629 $ 633 $ 9,547 $ 389 $ 2,178 $ 1,331 $ 451 $ 16,158 Charge-offs 25 215 309 23 1,347 386 1 2,306 Recoveries 30 - 161 377 980 243 18 1,809 Provision 819 274 123 180 35 258 111 1,800 Ending balance $ 2,453 $ 692 $ 9,522 $ 923 $ 1,846 $ 1,446 $ 579 $ 17,461 Ending balance: Individually evaluated for impairment $ - $ - $ - $ - $ 53 $ 91 $ - $ 144 Ending balance: Collectively evaluated for impairment 2,453 692 9,522 923 1,793 1,355 579 17,317 Total ending allowance balance $ 2,453 $ 692 $ 9,522 $ 923 $ 1,846 $ 1,446 $ 579 $ 17,461 Loans: Ending balance: Individually evaluated for impairment $ - $ 178 $ 3,041 $ 201 $ 14,575 $ 2,110 $ 7 $ 20,112 Ending balance: Collectively evaluated for impairment 272,851 68,147 747,950 84,961 298,822 110,723 14,056 1,597,510 Total ending loan balance $ 272,851 $ 68,325 $ 750,991 $ 85,162 $ 313,397 $ 112,833 $ 14,063 $ 1,617,622 1 The “Other” class includes consumer loans, overdrafts and net deferred costs.

Other Real Estate Owned (Tables

Other Real Estate Owned (Tables)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Other Real Estate Owned
Schedule of activity in the other real estate owned (OREO) portfolio, net of valuation reserve	Years Ended December 31, Other real estate owned 2019 2018 2017 Balance at beginning of period $ 7,175 $ 8,371 $ 11,916 Property additions, net of acquisition adjustments 872 3,316 3,796 Property improvements - 59 - Less: Proceeds from property disposals, net of participation purchase and of gains/losses 2,515 3,990 5,633 Period valuation adjustments 519 581 1,708 Other adjustments 9 - - Balance at end of period $ 5,004 $ 7,175 $ 8,371
Schedule of activity in valuation allowance	Twelve Months Ended December 31, 2019 2018 2017 Balance at beginning of period $ 8,027 $ 8,208 $ 9,982 Provision for unrealized losses 519 581 1,708 Reductions taken on sales (1,834) (762) (3,482) Balance at end of period $ 6,712 $ 8,027 $ 8,208
Schedule of expenses related to foreclosed assets, net of lease revenue		Twelve Months Ended December 31, 2019 2018 2017 Gain on sales, net $ (264) $ (792) $ (474) Provision for unrealized losses 519 581 1,708 Operating expenses 173 649 1,227 Less: Lease revenue 5 42 296 Net OREO expense $ 423 $ 396 $ 2,165

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2019
Premises and Equipment
Schedule of components of premises and equipment	2019 2018 Accumulated Accumulated Depreciation/ Net Book Depreciation/ Net Book Cost Amortization Value Cost Amortization Value Land $ 18,501 $ - $ 18,501 $ 18,501 $ - $ 18,501 Buildings 43,457 24,912 18,545 43,376 23,913 19,463 Leasehold improvements 2,314 399 1,915 710 246 464 Furniture and equipment 47,696 42,303 5,393 45,258 41,247 4,011 Total Premises and Equipment $ 111,968 $ 67,614 $ 44,354 $ 107,845 $ 65,406 $ 42,439

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2019
Deposits
Schedule of major classifications of deposits	2019 2018 Noninterest bearing demand $ 669,795 $ 618,830 Savings 307,015 304,400 NOW accounts 425,792 425,878 Money market accounts 282,478 310,390 Certificates of deposit of less than $100,000 227,578 230,781 Certificates of deposit of $100,000 through $250,000 151,279 159,953 Certificates of deposit of more than $250,000 62,812 66,441 Total deposits $ 2,126,749 $ 2,116,673
Summary of scheduled maturities of time deposits	2020 $ 354,394 2021 51,594 2022 18,125 2023 9,948 2024 7,608 Total time deposits $ 441,669

Borrowings (Tables)

Borrowings (Tables)	12 Months Ended
	Dec. 31, 2019
Borrowings
Summary of borrowings and junior subordinated debentures	2019 2018 Securities sold under repurchase agreements $ 48,693 $ 46,632 Other short-term borrowings 1 48,500 149,500 Junior subordinated debentures 2 57,734 57,686 Senior notes 44,270 44,158 Notes payable and other borrowings 6,673 15,379 Total borrowings $ 205,870 $ 313,355
Summary of scheduled maturities and weighted average rates of borrowings	2019 2018 Weighted Weighted Average Average Balance Rate Balance Rate 2019 $ N/A N/A $ 196,132 1.78 % 2020 97,193 1.85 % 8,500 2.05 2021 - - - - 2022 - - - - 2023 - - - - 2024 - - - - Thereafter 108,677 6.11 108,723 6.07 Total borrowings $ 205,870 4.10 % $ 313,355 3.28 %

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Taxes
Schedule of components of income tax expense (benefit)	2019 2018 2017 Current federal $ 4,815 $ - $ (2,407) Current state 1,151 84 - Deferred federal 3,177 6,226 11,724 Deferred state 3,259 3,614 1,938 Recovery due to State of Illinois tax rate change - - (1,566) Expense due to enactment of federal tax reform - - 9,475 Total income tax expenses $ 12,402 $ 9,924 $ 19,164
Schedule of components of deferred tax assets and liabilities	2019 2018 Allowance for loan and lease losses $ 6,082 $ 5,803 Deferred compensation 907 665 Goodwill amortization/impairment 3,456 4,698 Stock based compensation 1,622 1,377 Business combination adjustments 1,547 2,532 OREO write-downs 1,931 2,337 Federal net operating loss (“NOL”) carryforward 340 2,199 State NOL carryforward 326 4,034 Other assets 2,270 1,401 Total deferred tax assets 18,481 25,046 Accumulated depreciation on premises and equipment (746) (443) Mortgage servicing rights (1,779) (2,210) Amortization of core deposit intangible (144) (130) State tax benefits (927) (1,839) Other liabilities (1,637) (741) Total deferred tax liabilities (5,233) (5,363) Net deferred tax asset before adjustments related to other comprehensive income 13,248 19,683 Tax effect of adjustments related to other comprehensive (loss) income (1,789) 1,597 Net deferred tax asset $ 11,459 $ 21,280
Schedule of components of provision for deferred income taxes	2019 2018 2017 Provision for loan and lease losses $ (279) $ (426) $ 1,680 Deferred compensation (242) (15) 85 Amortization of core deposit intangible 14 957 574 Stock based compensation (245) (511) 80 Business combination adjustments 985 927 - OREO write-downs 406 48 2,725 Federal net operating loss carryforward 1,859 5,041 12,122 State net operating loss carryforward 3,708 2,986 715 Deferred tax credit - - 2,058 Depreciation 303 59 (297) Mortgage servicing rights (431) 124 (674) Goodwill amortization/impairment 1,242 1,389 4,040 State tax benefits (912) (550) (1,738) Other, net 28 (189) 201 Total deferred tax expense $ 6,436 $ 9,840 $ 21,571
Schedule of difference between effective tax rates from federal statutory rates	Effective tax rates differ from federal statutory rates applied to financial statement income for the years ended December 31, due to the following: 2019 2018 2017 Tax at statutory federal income tax rate $ 10,890 $ 9,227 $ 11,817 Nontaxable interest income, net of disallowed interest deduction (1,409) (1,600) (1,976) BOLI income (480) (422) (501) State income taxes, net of federal benefit 3,496 2,927 1,775 Stock based compensation (207) (305) - Impact of Federal tax rate change - - 9,475 Impact of Illinois tax rate change - - (1,566) Other, net 112 97 140 Total tax at effective tax rate $ 12,402 $ 9,924 $ 19,164

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	12 Months Ended
	Dec. 31, 2019
Equity Compensation Plans
Summary of stock option activity in Incentive Plan	A summary of stock option activity in the Plans for the year ending December 31, 2019, is as follows: Weighted- Weighted Average Average Remaining Exercise Contractual Aggregate Shares per Price Term (years) Intrinsic Value Beginning outstanding 4,500 $ 7.49 0.1 $ 25 Canceled - - - - Exercised (4,500) 7.49 - (27) Expired - - - - Ending outstanding - $ - - $ - Exercisable at end of period - $ - - $ -
Summary of stock option activity as of each year	A summary of stock option activity as of each year is as follows: 2019 2018 2017 Intrinsic value of options exercised $ 27 $ 27 $ - Cash received from option exercises 32 33 - Tax benefit realized from option exercises 5 5 - Weighted average fair value of options granted - - -
Summary of changes in nonvested shares of restricted share rights	2019 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Unvested at January 1 552,281 $ 11.30 Granted 171,356 12.75 Vested (168,354) 7.68 Forfeited - - Unvested at December 31 555,283 $ 12.85

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2019
Earnings Per Share
Schedule of Earnings Per Share	The earnings per share, both basic and diluted, are included below as of December 31, (in thousands except for per share data): 2019 2018 2017 Basic earnings per share: Weighted-average common shares outstanding 29,891,046 29,728,308 29,600,702 Net income $ 39,455 $ 34,012 $ 15,138 Basic earnings per share $ 1.32 $ 1.14 $ 0.51 Diluted earnings per share: Weighted-average common shares outstanding 29,891,046 29,728,308 29,600,702 Dilutive effect of unvested restricted awards 1 525,302 532,692 435,142 Dilutive effect of stock options and warrants - 47,935 2,573 Diluted average common shares outstanding 30,416,348 30,308,935 30,038,417 Net Income $ 39,455 $ 34,012 $ 15,138 Diluted earnings per share $ 1.30 $ 1.12 $ 0.50 Number of antidilutive options and warrants excluded from the diluted earnings per share calculation - - 815,339 1 Includes the common stock equivalents for restricted share rights that are dilutive.

Commitments (Tables)

Commitments (Tables)	12 Months Ended
	Dec. 31, 2019
Commitments
Schedule of contractual commitments due to letters of credit	The following table is a summary of financial instrument commitments as of December 31, were as follows: 2019 2018 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ 339 $ 9,612 $ 9,951 $ 327 $ 7,158 $ 7,485 Commercial standby - - - - 397 397 Performance standby 571 6,212 6,783 532 6,381 6,913 910 15,824 16,734 859 13,936 14,795 Non-borrower: Performance standby - 67 67 - 67 67 Total letters of credit $ 910 $ 15,891 $ 16,801 $ 859 $ 14,003 $ 14,862 Unused loan commitments: $ 111,348 $ 320,120 $ 431,468 $ 89,303 $ 297,785 $ 387,088
Schedule of aggregate minimum annual rental commitments	2025 2020 2021 2022 2023 2024 and thereafter Rental commitment $ 496 $ 742 $ 621 $ 612 $ 628 $ 3,940

Regulatory & Capital Matters (T

Regulatory & Capital Matters (Tables)	12 Months Ended
	Dec. 31, 2019
Regulatory & Capital Matters
Schedule of capital levels and industry defined regulatory minimum required levels	Minimum Capital Well Capitalized Adequacy with Capital Under Prompt Corrective Actual Conservation Buffer, if applicable 1 Action Provisions 2 Amount Ratio Amount Ratio Amount Ratio 2019 Common equity tier 1 capital to risk weighted assets Consolidated $ 251,477 11.14 % $ 158,020 7.000 % N/A N/A Old Second Bank 322,496 14.35 157,315 7.000 $ 146,078 6.50 % Total capital to risk weighted assets Consolidated 327,886 14.53 236,944 10.500 N/A N/A Old Second Bank 342,280 15.23 235,978 10.500 224,741 10.00 Tier 1 capital to risk weighted assets Consolidated 308,102 13.65 191,858 8.500 N/A N/A Old Second Bank 322,496 14.35 191,026 8.500 179,789 8.00 Tier 1 capital to average assets Consolidated 308,102 11.93 103,303 4.00 N/A N/A Old Second Bank 322,496 12.50 103,199 4.00 128,998 5.00 2018 Common equity tier 1 capital to risk weighted assets Consolidated $ 207,597 9.29 % $ 142,458 6.375 % N/A N/A Old Second Bank 295,599 13.29 141,794 6.375 $ 144,574 6.50 % Total capital to risk weighted assets Consolidated 282,126 12.63 220,585 9.875 N/A N/A Old Second Bank 314,600 14.14 219,708 9.875 222,489 10.00 Tier 1 capital to risk weighted assets Consolidated 263,125 11.78 175,901 7.875 N/A N/A Old Second Bank 295,599 13.29 175,157 7.875 177,938 8.00 Tier 1 capital to average assets Consolidated 263,125 10.08 104,415 4.00 N/A N/A Old Second Bank 295,599 11.36 104,084 4.00 130,105 5.00 1 As of December 31, 2019, amounts are shown inclusive of a capital conservation buffer of 2.50%; as compared to 1.875% at December 31, 2018. Under the Federal Reserve’s Small Bank Holding Company Policy Statement, the Company is not subject to the minimum capital adequacy and capital conservation buffer capital requirements at the holding company level, unless otherwise advised by the Federal Reserve (such capital requirements are applicable only at the Bank level). Although the minimum regulatory capital requirements are not applicable to the Company, we calculate these ratios for our own planning and monitoring purposes. 2 The prompt corrective action provisions are only applicable at the Bank level. The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized.”

Mortgage Banking Derivatives (T

Mortgage Banking Derivatives (Tables)	12 Months Ended
	Dec. 31, 2019
Not Designated as Hedging Instrument [Member] | Mortgage Banking Derivatives
Mortgage Banking Derivatives
Schedule of the effect of fair value and cash flow hedge accounting	These mortgage banking derivatives are not designated in hedge relationships using the accepted accounting for derivative instruments and hedging activities at December 31, were as follows: 2019 2018 Forward contracts: Notional amount $ 13,500 $ 9,315 Fair value (15) (50) Rate lock commitments: Notional amount $ 10,167 $ 8,815 Fair value 265 209

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2019
Fair Value Measurements
Schedule of balance of assets and liabilities which are measured at fair value on a recurring basis	2019 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 4,036 $ - $ - $ 4,036 U.S. government agencies - 8,337 - 8,337 U.S. government agencies mortgage-backed - 16,588 - 16,588 States and political subdivisions - 243,756 5,419 249,175 Collateralized mortgage obligations - 57,984 - 57,984 Asset-backed securities - 81,844 - 81,844 Collateralized loan obligations - 66,684 - 66,684 Loans held-for-sale - 3,061 - 3,061 Mortgage servicing rights - - 5,935 5,935 Interest rate swap agreements - 2,771 - 2,771 Mortgage banking derivatives - 250 - 250 Total $ 4,036 $ 481,275 $ 11,354 $ 496,665 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 5,974 $ - $ 5,974 Total $ - $ 5,974 $ - $ 5,974 December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 3,923 $ - $ - $ 3,923 U.S. government agencies - 10,951 - 10,951 U.S. government agencies mortgage-backed - 14,075 - 14,075 States and political subdivisions - 265,902 8,165 274,067 Collateralized mortgage obligations - 64,429 - 64,429 Asset-backed securities - 109,514 - 109,514 Collateralized loan obligations - 64,289 - 64,289 Loans held-for-sale - 2,984 - 2,984 Mortgage servicing rights - - 7,357 7,357 Interest rate swap agreements - 672 - 672 Mortgage banking derivatives - 159 - 159 Total $ 3,923 $ 532,975 $ 15,522 $ 552,420 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 756 $ - $ 756 Total $ - $ 756 $ - $ 756
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis	Year Ended December 31, 2019 Securities available-for-sale Collateralized States and Mortgage Mortgage Political Servicing Obligation Subdivisions Rights Beginning balance January 1, 2019 $ - $ 8,165 $ 7,357 Total gains or losses Included in earnings - (32) (1,953) Included in other comprehensive income - 726 - Purchases, issuances, sales, and settlements Purchases - 17,938 - Issuances - - 1,240 Settlements - (21,378) (709) Ending balance December 31, 2019 $ - $ 5,419 $ 5,935 Year Ended December 31, 2018 Securities available-for-sale Collateralized States and Mortgage Mortgage Political Servicing Obligation Subdivisions Rights Beginning balance January 1, 2018 $ 2,268 $ 14,261 $ 6,944 Transfers out of Level 3 (1,308) - - Total gains or losses Included in earnings 35 - (181) Included in other comprehensive income 40 (746) - Purchases, issuances, sales, and settlements Purchases - 22,046 - Issuances - - 1,146 Settlements (1,035) (27,396) (552) Ending balance December 31, 2018 $ - $ 8,165 $ 7,357
Schedule of quantitative information about level 3 fair value measurements	The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2019: Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 5,935 Discounted Cash Flow Discount Rate 10.0% - 58.8% 10.1 % Prepayment Speed 0.0 - 69.0% 14.1 % The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2018: Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 7,357 Discounted Cash Flow Discount Rate 10.0 - 229.7% 10.2 % Prepayment Speed 7.0 - 68.9% 9.6 %
Schedule of assets measured at fair value on a nonrecurring basis	For assets measured at fair value on a nonrecurring basis at December 31, the following tables provide the level of valuation assumptions used to determine each valuation and the carrying value of the related assets: 2019 Level 1 Level 2 Level 3 Total Impaired loans 1 $ - $ - $ 7,435 $ 7,435 Other real estate owned, net 2 - - 5,004 5,004 Total $ - $ - $ 12,439 $ 12,439 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, had a carrying amount of $8.6 million and a valuation allowance of $1.2 million, resulting in an increase of specific allocations within the provision for loan and lease losses of $783,000 for the year ending December 31, 2019. 2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $5.0 million, which is made up of the outstanding balance of $12.6 million, net of a valuation allowance of $6.7 million and participations of $937,000, at December 31, 2019. 2018 Level 1 Level 2 Level 3 Total Impaired loans 1 $ - $ - $ 12,163 $ 12,163 Other real estate owned, net 2 - - 7,175 7,175 Total $ - $ - $ 19,338 $ 19,338 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, had a carrying amount of $12.5 million, and a valuation allowance of 352,000, resulting in an increase of specific allocations within the provision for loan and lease losses of $208,000 for the year ending December 31, 2018. 2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $7.2 million, which is made up of the outstanding balance of $16.1 million, net of a valuation allowance of $8.0 million and participations of $900,000, at December 31, 2018.

Fair Values of Financial Inst_2

Fair Values of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2019
Fair Values of Financial Instruments
Schedule of carrying amount and estimated fair values of financial instruments	December 31, 2019 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 34,096 $ 34,096 $ 34,096 $ - $ - Interest bearing deposits with financial institutions 16,536 16,536 16,536 - - Securities available-for-sale 484,648 484,648 4,036 475,193 5,419 FHLBC and FRBC stock 9,917 9,917 - 9,917 - Loans held-for-sale 3,061 3,061 - 3,061 - Net loans 1,911,023 1,915,531 - - 1,915,531 Accrued interest receivable 9,697 9,697 - 9,697 - Financial liabilities: Noninterest bearing deposits $ 669,795 $ 669,795 $ 669,795 $ - $ - Interest bearing deposits 1,456,954 1,457,832 - 1,457,832 - Securities sold under repurchase agreements 48,693 48,693 - 48,693 - Other short-term borrowings 48,500 48,500 - 48,500 - Junior subordinated debentures 57,734 51,188 33,614 17,574 - Senior notes 44,270 46,269 46,269 - - Note payable and other borrowings 6,673 7,003 - 7,003 - Interest rate swap agreements 3,101 3,101 - 3,101 - Borrowing interest payable 96 96 - 96 - Deposit interest payable 983 983 - 983 - 2018 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 38,599 $ 38,599 $ 38,599 $ - $ - Interest bearing deposits with financial institutions 16,636 16,636 16,636 - - Securities available-for-sale 541,248 541,248 3,923 529,160 8,165 FHLBC and FRBC stock 13,433 13,433 - 13,433 - Loans held-for-sale 2,984 2,984 - 2,984 - Net loans 1,878,021 1,867,594 - - 1,867,594 Accrued interest receivable 10,940 10,940 - 10,940 - Financial liabilities: Noninterest bearing deposits $ 618,830 $ 618,830 $ 618,830 $ - $ - Interest bearing deposits 1,497,843 1,495,614 - 1,495,614 - Securities sold under repurchase agreements 46,632 46,632 - 46,632 - Other short-term borrowings 149,500 149,500 - 149,500 - Junior subordinated debentures 57,686 47,625 32,989 14,636 - Senior notes 44,158 45,008 45,008 - - Note payable and other borrowings 15,379 15,364 - 15,364 - Interest rate swap agreements 58 58 - 58 - Borrowing interest payable 281 281 - 281 - Deposit interest payable 973 973 - 973 -

Financial Instruments with Of_2

Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions (Tables)	12 Months Ended
	Dec. 31, 2018
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Schedule of fair value of derivative financial instruments as well as their classification on the Balance Sheet	2019 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swaps 75,774 Other Assets - Other Liabilities 3,150 Total derivatives designated as hedging instruments - 3,150 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 177,872 Other Assets 2,920 Other Liabilities 2,920 Interest rate lock commitments and forward contracts 23,667 Other Assets 250 Other Liabilities - Other contracts 28,176 Other Assets - Other Liabilities 53 Total derivatives not designated as hedging instruments 3,170 2,973 2018 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swaps 25,774 Other Assets - Other Liabilities 58 Total derivatives designated as hedging instruments - 58 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 188,931 Other Assets 672 Other Liabilities 672 Interest rate lock commitments and forward contracts 18,130 Other Assets 159 Other Liabilities - Other contracts 18,155 Other Assets - Other Liabilities 26 Total derivatives not designated as hedging instruments 831 698

Parent Company Condensed Fina_2

Parent Company Condensed Financial Information (Tables)	12 Months Ended
	Dec. 31, 2019
Parent Company Condensed Financial Information
Schedule of condensed balance sheets	2019 2018 Assets Noninterest bearing deposit with bank subsidiary $ 26,562 $ 9,039 Investment in subsidiaries 352,703 315,252 Other assets 3,981 12,997 Total assets $ 383,246 $ 337,288 Liabilities and Stockholders’ Equity Other short term borrowings $ - $ 4,000 Junior subordinated debentures 57,734 57,686 Senior notes 44,270 44,158 Other liabilities 3,378 2,363 Stockholders’ equity 277,864 229,081 Total liabilities and stockholders' equity $ 383,246 $ 337,288
Schedule of condensed statements of operations	2019 2018 2017 Operating Income Cash dividends received from subsidiaries $ 20,000 $ 30,000 $ - Other income 109 106 114 Total operating income 20,109 30,106 114 Operating Expenses Junior subordinated debentures 3,724 3,716 4,002 Senior notes 2,700 2,688 2,689 Other interest expense 13 98 - Other expenses 4,025 4,208 2,639 Total operating expense 10,462 10,710 9,330 Income (loss) before income taxes and equity in undistributed net income of subsidiaries 9,647 19,396 (9,216) Income tax benefit (3,187) (3,355) (16) Income (loss) before equity in undistributed net income of subsidiaries 12,834 22,751 (9,200) Equity in undistributed net income of subsidiaries 26,621 11,261 24,338 Net income available to common stockholders $ 39,455 $ 34,012 $ 15,138
Schedule of condensed statements of cash Flows	2019 2018 2017 Cash Flows from Operating Activities Net Income $ 39,455 $ 34,012 $ 15,138 Adjustments to reconcile net income to net cash from operating activities: Equity in undistributed net income of subsidiaries (26,621) (11,261) (24,338) Provision for deferred tax expense (benefit) 4,186 6,697 6,397 Net deferred tax expense due to DTA revaluation - - 3,908 Change in taxes payable 3,896 (1,211) (4,797) Change in other assets - 97 74 Stock-based compensation 2,516 2,257 1,181 Other, net (80) 172 (15) Net cash provided by (used in) operating activities 23,352 30,763 (2,452) Cash Flows from Investing Activities Cash paid for acquisition, net of cash and cash equivalents retained - (47,074) - Net cash used in investing activities - (47,074) - Cash Flows from Financing Activities Net change in other short-term borrowings (4,000) 4,000 - Dividend paid on common stock (1,195) (1,189) (1,184) Purchases of treasury stock (666) (505) (236) Payment of senior note issuance costs - - (42) Proceeds from exercise of stock option 32 33 - Net cash (used in) provided by financing activities (5,829) 2,339 (1,462) Net change in cash and cash equivalents 17,523 (13,972) (3,914) Cash and cash equivalents at beginning of year 9,039 23,011 26,925 Cash and cash equivalents at end of year $ 26,562 $ 9,039 $ 23,011

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Dividend (Details)	12 Months Ended
	Dec. 31, 2019USD ($)segmentitem	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Jan. 21, 2020$ / shares
90-Days or Greater Past Due Loans
Period from due date after which accrual of interest income is discontinued	90 days
Goodwill and Core Deposit Intangible
Impairment of goodwill	$ 0
Amortization of core deposit intangible	$ 539,000	$ 387,000	$ 96,000
Subsequent Events
Number of banking centres | item	29
Operating segment | segment	1
Core Deposits [Member]
Goodwill and Core Deposit Intangible
Amortization of core deposit intangible	$ 539,000	387,000	96,000
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Estimated future amortization expense for the core deposit intangible for the year ending December 31, 2020	494,000
Estimated future amortization expense for the core deposit intangible for the year ending December 31, 2021	459,000
Estimated future amortization expense for the core deposit intangible for the year ending December 31, 2022	421,000
Estimated future amortization expense for the core deposit intangible for the year ending December 31, 2023	379,000
Estimated future amortization expense for the core deposit intangible for the year ending December 31, 2024	331,000
Core Deposits [Member] | Talmer
Goodwill and Core Deposit Intangible
Remaining intangible asset	$ 366,000
Core Deposits [Member] | GCFC/ABC Bank
Goodwill and Core Deposit Intangible
Useful life (in years)	10 years
Intangible asset recorded	$ 3,100,000
Remaining intangible asset	2,300,000
Subsequent Event
Subsequent Events
Dividends Payable, Amount Per Share | $ / shares				$ 0.01
Unallocated Financing Receivables [Member]
Allowance for Loan Losses
Unallocated component of allowance	$ 503,000	$ 537,000	$ 542,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Premises and Equipment (Details) - USD ($)	Jan. 28, 2020	Dec. 31, 2019	Dec. 31, 2018
Transfers and Servicing of Financial Assets
Mortgage loans serviced for others		$ 723,400,000	$ 711,100,000
Subsequent Events
Subordinated debentures		$ 57,734,000	$ 57,686,000
Old Second Capital Trust I
Subsequent Events
Cash distribution rate of trust preferred securities (as a percent)		7.80%
Junior Subordinated Debt
Subsequent Events
Subordinated debentures	$ 32,604,000
Junior Subordinated Debt | Old Second Capital Trust I
Subsequent Events
Cash distribution rate of trust preferred securities (as a percent)	7.80%
Subordinated debentures		$ 32,600,000
Redemption Price	$ 10
Redemption Price percentage of liquidation amount	100.00%
7.8% subordinated debentures
Subsequent Events
Interest rate (as a percent)	7.80%
Finance Leases Portfolio Segment
Allowance for loans and lease losses
Growth in loan balance		40,900,000
Construction Loans | Real Estate Portfolio Segment [Member]
Allowance for loans and lease losses
Decline in loan balance		$ 38,800,000
HELOC
Allowance for loans and lease losses
ALLL methodology period		2 years
Business Development		$ 0
Building [Member] | Minimum [Member]
Premises and equipment
Useful lives		25 years
Building [Member] | Maximum [Member]
Premises and equipment
Useful lives		40 years
Building Improvements [Member] | Minimum [Member]
Premises and equipment
Useful lives		3 years
Building Improvements [Member] | Maximum [Member]
Premises and equipment
Useful lives		15 years
Furniture and Fixtures [Member] | Minimum [Member]
Premises and equipment
Useful lives		3 years
Furniture and Fixtures [Member] | Maximum [Member]
Premises and equipment
Useful lives		10 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Accounting Pronouncements (Details) - USD ($)	Jan. 01, 2020	Dec. 31, 2019	Jan. 01, 2019
Initial forecast period		1 year
ACL increase from non-accretable purchase accounting adjustments		$ 2,500,000
Minimum [Member]
ACL for loans and leases		4,000,000
Maximum [Member]
ACL for loans and leases		6,000,000
Accounting Standards Update 2016-02
Right of use assets, Operating		3,300,000	$ 817,000
Lessee lease liabiity, Operating		$ 3,300,000	817,000
Lease receivable, Lessor			174,000
Lease liability, Lessor			$ 77,000
Accounting Standards Update 2016-13 | Minimum [Member] | Scenario Forecast Adjustment [Member]
Reduction to retained earnings	$ 3,000,000
Accounting Standards Update 2016-13 | Maximum [Member] | Scenario Forecast Adjustment [Member]
Reduction to retained earnings	$ 5,000,000

Acquisitions (Details)

Acquisitions (Details)	Apr. 20, 2018USD ($)item	Dec. 31, 2019USD ($)	Aug. 20, 2018USD ($)	Dec. 26, 2017USD ($)	Dec. 31, 2016USD ($)	Oct. 28, 2016USD ($)	Oct. 26, 2016USD ($)
Assets acquired:
Loans			$ 227,600,000
GCFC/ABC Bank
Business Acquisition [Line Items]
Number of bank branches operated | item	4
Acquisition price	$ 41,100,000
Net cash paid	47,180,000
Subordinated debentures retired	6,600,000
Goodwill		$ 10,200,000
Core deposit intangible		3,100,000
Valuation adjustment, fixed assets		1,500,000
Valuation adjustment, loan valuation mark		11,200,000
Acquisition expenses				$ 65,000
Total liabilities	289,769,000
Loans payable		23,400,000
Assets acquired:
Cash on due from banks	6,669,000
Interest bearing deposits with financial institutions	500,000
Securities available-for-sale, at fair value	72,091,000
Federal funds sold	4,300,000
FHLBC stock	1,549,000
Loans	227,594,000
Premises and equipment	5,339,000
Other real estate owned	401,000
Goodwill and core deposit intangible	13,280,000
Deferred tax assets, net	3,459,000
Other assets	1,767,000
Total assets	336,949,000
Liabilities assumed:
Deposits-noninterest bearing demand	58,005,000
Deposits - Savings, NOW and money market	91,494,000
Deposits-Time	98,999,000
Total deposits	248,498,000
Securities sold under repurchase agreements	5,623,000
Other short-term borrowings	10,875,000
Notes payable and other borrowings	23,367,000
Other liabilities	1,406,000
Total liabilities	289,769,000
Cash consideration paid	47,180,000
Total Liabilities Assumed and Cash Consideration Paid for Acquisition	$ 336,949,000
GCFC/ABC Bank | Selling, General and Administrative Expenses [Member]
Business Acquisition [Line Items]
Acquisition expenses		3,500,000
GCFC/ABC Bank | Salaries and Employee Benefits
Business Acquisition [Line Items]
Acquisition expenses		1,100,000
GCFC/ABC Bank | Data Processing, Computer and ATM
Business Acquisition [Line Items]
Acquisition expenses		$ 1,800,000
Talmer
Business Acquisition [Line Items]
Acquisition expenses					$ 269,000
Loans payable						$ 221,000,000
Deposits						$ 48,900,000
Liabilities assumed:
Total Liabilities Assumed and Cash Consideration Paid for Acquisition							$ 181,500,000

Acquisition of Loans (Details)

Acquisition of Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Apr. 20, 2018
Business Acquisition [Line Items]
Fair Value	$ 8,601	$ 10,965
PCI | GCFC/ABC Bank
Business Acquisition [Line Items]
Fair Value	8,601		$ 11,360
Contractually required principal and interest payments	13,254		19,447
Best estimate of contractual cash flows not expected to be collected	3,970		6,537
Best estimate of contractual cash flows expected to be collected	9,284		12,910
Non-PCI | GCFC/ABC Bank
Business Acquisition [Line Items]
Fair Value	126,482		216,234
Contractually required principal and interest payments	127,630		220,308
Best estimate of contractual cash flows not expected to be collected	500		2,511
Best estimate of contractual cash flows expected to be collected	$ 127,130		$ 217,797

Cash and Due from Banks (Detail

Cash and Due from Banks (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Cash and Due from Banks.
Balances	$ 12.4	$ 10.8

Securities - Investment Portfol

Securities - Investment Portfolio (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Securities
Pretax realized losses on sale of available-for-sale securities	$ 1,010	$ 9	$ 1,893
FHLB and FRB Stock
FHLBC stock	3,700	$ 7,200
FRB stock	$ 6,200

Securities - Amortized Cost and

Securities - Amortized Cost and Fair Value (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Securities Available-for-Sale
Amortized Cost	$ 475,146	$ 546,867
Gross Unrealized Gains	13,285	3,229
Gross Unrealized Losses	(3,783)	(8,848)
Fair Value	484,648	541,248
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value	8,601	10,965
Other disclosures
Purchases	159,544	75,044	$ 343,470
Sales	191,298	94,663	$ 232,462
Securities pledged to secure deposits and for other purposes	$ 320,800	318,400
Reimbursement requests greater than 5 %
Other disclosures
Percentage of outstanding principal amount of loans guaranteed by US Department of Education	85
Percent of insured loan	5
Reimbursement requests greater than 9 %
Other disclosures
Percentage of outstanding principal amount of loans guaranteed by US Department of Education	75
Percent of insured loan	9
US Treasury Securities [Member]
Securities Available-for-Sale
Amortized Cost	$ 4,010	4,006
Gross Unrealized Gains	26
Gross Unrealized Losses		(83)
Fair Value	4,036	3,923
US Treasury and Government
Securities Available-for-Sale
Amortized Cost	8,502
Gross Unrealized Losses	(165)
Fair Value	8,337
US Government Corporations and Agencies Securities [Member]
Securities Available-for-Sale
Amortized Cost		11,112
Gross Unrealized Losses		(161)
Fair Value		10,951
U.S. government agencies mortgage-backed
Securities Available-for-Sale
Amortized Cost	16,164	14,407
Gross Unrealized Gains	443	45
Gross Unrealized Losses	(19)	(377)
Fair Value	16,588	14,075
US States and Political Subdivisions Debt Securities [Member]
Securities Available-for-Sale
Amortized Cost	240,399	277,112
Gross Unrealized Gains	11,207	1,916
Gross Unrealized Losses	(2,431)	(4,961)
Fair Value	249,175	274,067
Collateralized Mortgage Obligations [Member]
Securities Available-for-Sale
Amortized Cost	57,059	66,494
Gross Unrealized Gains	963	79
Gross Unrealized Losses	(38)	(2,144)
Fair Value	57,984	64,429
Asset-backed Securities [Member]
Securities Available-for-Sale
Amortized Cost	82,114	108,574
Gross Unrealized Gains	617	1,165
Gross Unrealized Losses	(887)	(225)
Fair Value	81,844	109,514
FFEL
Securities Available-for-Sale
Fair Value	$ 54,900
Other disclosures
Percentage of outstanding principal amount of loans guaranteed by US Department of Education	97
Collateralized loan obligations
Securities Available-for-Sale
Amortized Cost	$ 66,898	65,162
Gross Unrealized Gains	29	24
Gross Unrealized Losses	(243)	(897)
Fair Value	66,684	$ 64,289
GCO Education Loan Funding Corp [Member]
Securities Available-for-Sale
Amortized Cost	27,873
Fair Value	$ 27,470
GCO Education Loan Funding Corp [Member] | Stockholders' Equity, Total [Member]
Other disclosures
Credit risk as a percentage of benchmark	1.00%
Towd Point Mortgage Trust
Securities Available-for-Sale
Amortized Cost	$ 33,551
Fair Value	$ 34,322

Securities - Contractural Matur

Securities - Contractural Maturities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Securities Available-for-Sale, Amortized Cost
Due in one year or less	$ 509
Due after one year through five years	6,297
Due after five years through ten years	4,727
Due after ten years	241,378
Debt securities excluding securities not due at a single maturity date	252,911
Total	$ 475,146	$ 546,867
Securities Available-for-Sale, Weighted Average Yield
Due in one year or less (as a percent)	2.03%
Due after one year through five years (as a percent)	2.11%
Due after five years through ten years (as a percent)	3.49%
Due after ten years (as a percent)	3.02%
Debt securities (as a percent)	3.00%
Total (as a percent)	3.22%
Securities Available-for-Sale, Fair Value
Due in one year or less	$ 510
Due after one year through five years	6,411
Due after five years through ten years	5,076
Due after ten years	249,551
Debt securities	261,548
Fair Value	484,648	541,248
Collateralized Mortgage Obligations [Member]
Securities Available-for-Sale, Amortized Cost
Total	57,059	66,494
Securities Available-for-Sale, Fair Value
Fair Value	57,984	64,429
Asset-backed Securities [Member]
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	82,114
Total	$ 82,114	108,574
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	2.99%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date	$ 81,844
Fair Value	81,844	109,514
Collateralized loan obligations
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	66,898
Total	$ 66,898	65,162
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	4.28%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date	$ 66,684
Fair Value	66,684	$ 64,289
Mortgage-backed and collateralized mortgage obligations
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	$ 73,223
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	3.28%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date	$ 74,572

Securities - Unrealized Loss Po

Securities - Unrealized Loss Positions (Details)	Dec. 31, 2019USD ($)security	Dec. 31, 2018USD ($)
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position	19	16
Greater than 12 months in an unrealized loss position	15	61
Total	34	77
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 2,602,000	$ 1,256,000
Greater than 12 months in an unrealized loss position	1,181,000	7,592,000
Total	3,783,000	8,848,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	129,582,000	86,856,000
Greater than 12 months in an unrealized loss position	45,240,000	197,238,000
Total	$ 174,822,000	$ 284,094,000
US Treasury Securities [Member]
Securities Available-for-Sale, Number of Securities
Greater than 12 months in an unrealized loss position		1
Total		1
Securities Available-for-Sale, Unrealized Losses
Greater than 12 months in an unrealized loss position		$ 83,000
Total		83,000
Securities Available-for-Sale, Fair Value
Greater than 12 months in an unrealized loss position		3,923,000
Total		$ 3,923,000
US Government Corporations and Agencies Securities [Member]
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position		3
Greater than 12 months in an unrealized loss position	4	1
Total	4	4
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position		$ 100,000
Greater than 12 months in an unrealized loss position	$ 165,000	61,000
Total	165,000	161,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position		7,385,000
Greater than 12 months in an unrealized loss position	8,337,000	3,566,000
Total	$ 8,337,000	$ 10,951,000
Mortgage Backed Securities, Issued by US Government Agencies [Member]
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	3
Greater than 12 months in an unrealized loss position	2	11
Total	5	11
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 10,000
Greater than 12 months in an unrealized loss position	9,000	$ 377,000
Total	19,000	377,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	3,018,000
Greater than 12 months in an unrealized loss position	843,000	11,439,000
Total	$ 3,861,000	$ 11,439,000
US States and Political Subdivisions Debt Securities [Member]
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position	6	4
Greater than 12 months in an unrealized loss position	2	33
Total	8	37
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 1,665,000	$ 126,000
Greater than 12 months in an unrealized loss position	766,000	4,835,000
Total	2,431,000	4,961,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	41,043,000	17,713,000
Greater than 12 months in an unrealized loss position	6,593,000	110,326,000
Total	$ 47,636,000	$ 128,039,000
Collateralized Mortgage Obligations [Member]
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position	2	2
Greater than 12 months in an unrealized loss position	2	10
Total	4	12
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 26,000	$ 309,000
Greater than 12 months in an unrealized loss position	12,000	1,835,000
Total	38,000	2,144,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	9,054,000	15,211,000
Greater than 12 months in an unrealized loss position	1,209,000	43,687,000
Total	$ 10,263,000	$ 58,898,000
Asset-backed Securities [Member]
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	4
Greater than 12 months in an unrealized loss position	1	4
Total	5	4
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 839,000
Greater than 12 months in an unrealized loss position	48,000	$ 225,000
Total	887,000	225,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	54,540,000
Greater than 12 months in an unrealized loss position	3,238,000	16,473,000
Total	$ 57,778,000	$ 16,473,000
Collateralized loan obligations
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position	4	7
Greater than 12 months in an unrealized loss position	4	1
Total	8	8
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 62,000	$ 721,000
Greater than 12 months in an unrealized loss position	181,000	176,000
Total	243,000	897,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	21,927,000	46,547,000
Greater than 12 months in an unrealized loss position	25,020,000	7,824,000
Total	$ 46,947,000	$ 54,371,000

Securities - Realized Gain (Los

Securities - Realized Gain (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Securities
Sales	$ 191,298	$ 94,663	$ 232,462
Gross realized gains on securities	5,521	369	2,367
Gross realized losses on securities	(1,010)	(9)	(1,893)
Securities (losses) gains, net	4,511	360	474
Related tax (expense) benefit	$ (1,267)	$ (100)	$ (198)
Effective tax rate applied (as a percent)	28.10%	27.80%	41.80%
Available-for-sale Securities Pledged as Collateral	$ 320,800	$ 318,400

Loans - Major Classifications (

Loans - Major Classifications (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loans
Total loans, gross	$ 1,920,425	$ 1,884,409
Net deferred loan fees	1,786	1,653
Total loans, excluding PCI loans	1,922,211	1,886,062
PCI loans, net of purchase accounting adjustments	1,930,812	1,897,027	$ 1,617,622
Total Loans	1,930,812	1,897,027
Construction Loans
Loans
PCI loans, net of purchase accounting adjustments		109,135	85,162
Total Loans	70,217
HELOC
Loans
Total loans, gross	123,457	140,442
Other Financing Receivable [Member]
Loans
Total loans, gross	12,258	14,439
PCI
Loans
PCI loans, net of purchase accounting adjustments	8,601	10,965
Non-PCI
Loans
Total loans, excluding PCI loans	1,922,211	1,886,062
Commercial
Loans
Total loans, gross	332,842	314,323
PCI loans, net of purchase accounting adjustments	332,842	314,323	272,851
Real estate - commercial
Loans
Total loans, gross	865,599	820,941
PCI loans, net of purchase accounting adjustments		825,123	750,991
Total Loans	869,019
Real estate - commercial | Construction Loans
Loans
Total loans, gross	69,617	108,390
Real estate - residential
Loans
Total loans, gross	396,901	407,068
PCI loans, net of purchase accounting adjustments		413,106	313,397
Total Loans	401,482
Consumer
Loans
PCI loans, net of purchase accounting adjustments		140,442	112,833
Total Loans	123,457
Finance Leases Portfolio Segment
Loans
Total loans, gross	119,751	78,806
PCI loans, net of purchase accounting adjustments	$ 119,751	$ 78,806	$ 68,325

Loans - Major Classifications -

Loans - Major Classifications - Loan Concentrations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Aug. 20, 2018
Loans
Loans			$ 227.6
Real Estate Portfolio Segment [Member]
Loans
Loans receivable as a percentage of total portfolio	75.40%	77.90%

Loans - Aging Analysis (Details

Loans - Aging Analysis (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Aged analysis of past due loans
Total Past Due	$ 16,935	$ 11,906
Current	1,892,844	1,860,415
Nonaccrual	12,432	13,741
Total Loans	1,922,211	1,886,062
Total Loans	1,930,812	1,897,027	$ 1,617,622
Total Past Due Including PCI loans	17,196	13,358
Current including PCI Loans	1,898,221	1,867,663
Non accrual including PCI Loans	15,395	16,006
Recorded Investment 90 days or Greater Past Due and Accruing	2,628	935
Total Loans	1,930,812	1,897,027
30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	9,118	9,165
Total Past Due Including PCI loans	9,379	10,617
60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	5,272	1,824
Total Past Due Including PCI loans		1,824
90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	2,545	917
Total Past Due Including PCI loans		917
PCI
Aged analysis of past due loans
Total Past Due	261	1,452
Current	5,377	7,248
Nonaccrual	2,963	2,265
Total Loans	8,601	10,965
PCI | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	261	1,452
Multifamily
Aged analysis of past due loans
Total Past Due	1,710	724,000
Current	187,995	195,504,000
Nonaccrual	68
Total Loans	189,773
Total Loans	189,773	196,228,000
Recorded Investment 90 days or Greater Past Due and Accruing		180,000
Multifamily | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	10	545,000
Multifamily | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	1,700
Multifamily | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due		179,000
Construction Loans
Aged analysis of past due loans
Total Loans		109,135	85,162
Total Loans	70,217
Commercial
Aged analysis of past due loans
Total Past Due	4,299	410
Current	328,399	313,913
Nonaccrual	144
Total Loans	332,842	314,323
Total Loans	332,842	314,323	272,851
Recorded Investment 90 days or Greater Past Due and Accruing	2,132	361
Commercial | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	1,271	58
Commercial | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	925
Commercial | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	2,103	352
Finance Leases Portfolio Segment
Aged analysis of past due loans
Total Past Due	443
Current	118,979	78,806
Nonaccrual	329
Total Loans	119,751	78,806
Total Loans	119,751	78,806	68,325
Recorded Investment 90 days or Greater Past Due and Accruing	128
Finance Leases Portfolio Segment | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	362
Finance Leases Portfolio Segment | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	81
Real estate - commercial
Aged analysis of past due loans
Total Loans		825,123	750,991
Total Loans	869,019
Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Aged analysis of past due loans
Total Past Due	2,411	1,801
Current	146,323	160,892
Nonaccrual	792	1,579
Total Loans	149,526	164,272
Total Loans	149,526	164,272
Recorded Investment 90 days or Greater Past Due and Accruing		36
Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member] | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	1,725	1,768
Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member] | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	686
Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member] | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due		33
Real estate - commercial | Commercial Real Estate Owner Occupied Special Purpose Loan [Member]
Aged analysis of past due loans
Total Past Due	852	961
Current	173,346	192,426
Nonaccrual	4,388	395
Total Loans	178,586	193,782
Total Loans	178,586	193,782
Real estate - commercial | Commercial Real Estate Owner Occupied Special Purpose Loan [Member] | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	512	826
Real estate - commercial | Commercial Real Estate Owner Occupied Special Purpose Loan [Member] | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	340	135
Real estate - commercial | Commercial Real Estate, Non Owner Occupied General Purpose Loan [Member]
Aged analysis of past due loans
Total Past Due	1,064	3,035
Current	317,923	286,115
Nonaccrual	549	4,236
Total Loans	319,536	293,386
Total Loans	319,536	293,386
Recorded Investment 90 days or Greater Past Due and Accruing	348
Real estate - commercial | Commercial Real Estate, Non Owner Occupied General Purpose Loan [Member] | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	626	2,832
Real estate - commercial | Commercial Real Estate, Non Owner Occupied General Purpose Loan [Member] | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	95	203
Real estate - commercial | Commercial Real Estate, Non Owner Occupied General Purpose Loan [Member] | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	343
Real estate - commercial | Commercial Real Estate, Non Owner Occupied Special Purpose Loan [Member]
Aged analysis of past due loans
Current	146,483	106,036
Nonaccrual		3,099
Total Loans	146,483	109,135
Total Loans	146,483	109,135
Real estate - commercial | Commercial Real Estate, Retail Properties Loan [Member]
Aged analysis of past due loans
Total Past Due		620
Current	52,930	45,968
Nonaccrual	1,146
Total Loans	54,076	46,588
Total Loans	54,076	46,588
Real estate - commercial | Commercial Real Estate, Retail Properties Loan [Member] | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due		620
Real estate - commercial | Commercial Real Estate, Farm Loan [Member]
Aged analysis of past due loans
Total Past Due	232
Current	17,160	13,778
Total Loans	17,392	13,778
Total Loans	17,392	13,778
Real estate - commercial | Commercial Real Estate, Farm Loan [Member] | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	232
Real estate - commercial | Construction Loans | Construction Real Estate, Homebuilder Loan [Member]
Aged analysis of past due loans
Current	5,300	5,102
Total Loans	5,300	5,102
Total Loans	5,300	5,102
Real estate - commercial | Construction Loans | Construction Real Estate, Land Loan [Member]
Aged analysis of past due loans
Total Past Due		266
Current	12,379	2,478
Total Loans	12,379	2,744
Total Loans	12,379	2,744
Real estate - commercial | Construction Loans | Construction Real Estate, Land Loan [Member] | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due		266
Real estate - commercial | Construction Loans | Construction Real Estate, Commercial Speculative Loan [Member]
Aged analysis of past due loans
Total Past Due		350
Current	37,571	55,060
Total Loans	37,571	55,410
Total Loans	37,571	55,410
Recorded Investment 90 days or Greater Past Due and Accruing		355
Real estate - commercial | Construction Loans | Construction Real Estate, Commercial Speculative Loan [Member] | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due		350
Real estate - commercial | Construction Loans | Construction Real Estate, Other Receivable [Member]
Aged analysis of past due loans
Total Past Due	26
Current	14,248	45,028
Nonaccrual	93	106
Total Loans	14,367	45,134
Total Loans	14,367	45,134
Real estate - commercial | Construction Loans | Construction Real Estate, Other Receivable [Member] | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	26
Real estate - residential
Aged analysis of past due loans
Total Loans		413,106	313,397
Total Loans	401,482
Real estate - residential | Residential Investor Loan [Member]
Aged analysis of past due loans
Total Past Due	266	957
Current	70,051	69,148
Nonaccrual	788	353
Total Loans	71,105	70,458
Total Loans	71,105	70,458
Real estate - residential | Residential Investor Loan [Member] | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	141	801
Real estate - residential | Residential Investor Loan [Member] | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	125	156
Real estate - residential | Multifamily
Aged analysis of past due loans
Total Loans		196,228
Real estate - residential | Residential Owner Occupied Loan [Member]
Aged analysis of past due loans
Total Past Due	4,801	1,946
Current	128,650	135,360
Nonaccrual	2,572	3,076
Total Loans	136,023	140,382
Total Loans	136,023	140,382
Real estate - residential | Residential Owner Occupied Loan [Member] | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	3,450	1,241
Real estate - residential | Residential Owner Occupied Loan [Member] | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	1,351	705
Real estate - residential | Residential Revolving and Junior Liens Loan [Member]
Aged analysis of past due loans
Total Past Due	803	775
Current	121,110	138,801
Nonaccrual	1,544	866
Total Loans	123,457	140,442
Total Loans	123,457	140,442
Recorded Investment 90 days or Greater Past Due and Accruing	20
Real estate - residential | Residential Revolving and Junior Liens Loan [Member] | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	735	775
Real estate - residential | Residential Revolving and Junior Liens Loan [Member] | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	50
Real estate - residential | Residential Revolving and Junior Liens Loan [Member] | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	18
Consumer
Aged analysis of past due loans
Total Loans		140,442	112,833
Total Loans	123,457
Unallocated Financing Receivables [Member]
Aged analysis of past due loans
Total Past Due	28	61
Current	13,997	16,000
Nonaccrual	19	31
Total Loans	14,044	16,092
Total Loans	14,044	16,092	$ 14,063
Recorded Investment 90 days or Greater Past Due and Accruing		3
Total Loans	14,044
Unallocated Financing Receivables [Member] | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	$ 28	53
Unallocated Financing Receivables [Member] | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due		5
Unallocated Financing Receivables [Member] | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due		$ 3

Loans - Inclusion (Details)

Loans - Inclusion (Details)	12 Months Ended
	Dec. 31, 2019USD ($)
Minimum [Member]
Loans by risk rating
Loan commitment for inclusion in credit quality analysis	$ 50,000

Loans - Credit Quality (Details

Loans - Credit Quality (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loans by risk rating
Total Loans	$ 1,930,812	$ 1,897,027	$ 1,617,622
Total loans, excluding PCI loans	1,922,211	1,886,062
PCI loans, net of purchase accounting adjustments	8,601	10,965
Total Loans	1,930,812	1,897,027
Multifamily
Loans by risk rating
Total Loans	189,773	196,228,000
Commercial
Loans by risk rating
Total Loans	332,842	314,323	272,851
Finance Leases Portfolio Segment
Loans by risk rating
Total Loans	119,751	78,806	68,325
Real estate - commercial
Loans by risk rating
Total Loans		825,123	750,991
PCI loans, net of purchase accounting adjustments	3,420	4,182
Total Loans	869,019
Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Loans by risk rating
Total Loans	149,526	164,272
Real estate - commercial | Commercial Real Estate Owner Occupied Special Purpose Loan [Member]
Loans by risk rating
Total Loans	178,586	193,782
Real estate - commercial | Commercial Real Estate, Non Owner Occupied General Purpose Loan [Member]
Loans by risk rating
Total Loans	319,536	293,386
Real estate - commercial | Commercial Real Estate, Non Owner Occupied Special Purpose Loan [Member]
Loans by risk rating
Total Loans	146,483	109,135
Real estate - commercial | Commercial Real Estate, Retail Properties Loan [Member]
Loans by risk rating
Total Loans	54,076	46,588
Real estate - commercial | Commercial Real Estate, Farm Loan [Member]
Loans by risk rating
Total Loans	17,392	13,778
Real estate - residential
Loans by risk rating
Total Loans		413,106	313,397
PCI loans, net of purchase accounting adjustments	4,581	6,038
Total Loans	401,482
Real estate - residential | Residential Investor Loan [Member]
Loans by risk rating
Total Loans	71,105	70,458
Real estate - residential | Multifamily
Loans by risk rating
Total Loans		196,228
Real estate - residential | Residential Owner Occupied Loan [Member]
Loans by risk rating
Total Loans	136,023	140,382
Real estate - residential | Residential Revolving and Junior Liens Loan [Member]
Loans by risk rating
Total Loans	123,457	140,442
Consumer
Loans by risk rating
Total Loans		140,442	112,833
Total Loans	123,457
Unallocated Financing Receivables [Member]
Loans by risk rating
Total Loans	14,044	16,092	14,063
Total Loans	14,044
Pass [Member]
Loans by risk rating
Total loans, excluding PCI loans	1,862,573	1,834,550
PCI loans, net of purchase accounting adjustments	573	907
Total Loans	1,863,146	1,835,457
Pass [Member] | Multifamily
Loans by risk rating
Total Loans	187,560
Pass [Member] | Commercial
Loans by risk rating
Total Loans	307,948	305,993
Pass [Member] | Finance Leases Portfolio Segment
Loans by risk rating
Total Loans	119,045	78,806
Pass [Member] | Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Loans by risk rating
Total Loans	144,292	157,334
Pass [Member] | Real estate - commercial | Commercial Real Estate Owner Occupied Special Purpose Loan [Member]
Loans by risk rating
Total Loans	171,444	186,218
Pass [Member] | Real estate - commercial | Commercial Real Estate, Non Owner Occupied General Purpose Loan [Member]
Loans by risk rating
Total Loans	315,340	284,818
Pass [Member] | Real estate - commercial | Commercial Real Estate, Non Owner Occupied Special Purpose Loan [Member]
Loans by risk rating
Total Loans	142,958	104,526
Pass [Member] | Real estate - commercial | Commercial Real Estate, Retail Properties Loan [Member]
Loans by risk rating
Total Loans	52,342	44,805
Pass [Member] | Real estate - commercial | Commercial Real Estate, Farm Loan [Member]
Loans by risk rating
Total Loans	15,155	11,307
Pass [Member] | Real estate - residential | Residential Investor Loan [Member]
Loans by risk rating
Total Loans	69,715	69,242
Pass [Member] | Real estate - residential | Multifamily
Loans by risk rating
Total Loans		195,249
Pass [Member] | Real estate - residential | Residential Owner Occupied Loan [Member]
Loans by risk rating
Total Loans	132,258	135,858
Pass [Member] | Real estate - residential | Residential Revolving and Junior Liens Loan [Member]
Loans by risk rating
Total Loans	121,476	138,553
Pass [Member] | Unallocated Financing Receivables [Member]
Loans by risk rating
Total Loans	13,685	16,061
Special Mention [Member]
Loans by risk rating
Total loans, excluding PCI loans	26,625	16,243
PCI loans, net of purchase accounting adjustments	261	2,906
Total Loans	26,886	19,149
Special Mention [Member] | Multifamily
Loans by risk rating
Total Loans	1,710
Special Mention [Member] | Commercial
Loans by risk rating
Total Loans	13,206	8,193
Special Mention [Member] | Finance Leases Portfolio Segment
Loans by risk rating
Total Loans	377
Special Mention [Member] | Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Loans by risk rating
Total Loans	2,967	1,660
Special Mention [Member] | Real estate - commercial | Commercial Real Estate Owner Occupied Special Purpose Loan [Member]
Loans by risk rating
Total Loans	2,663	3,429
Special Mention [Member] | Real estate - commercial | Commercial Real Estate, Non Owner Occupied General Purpose Loan [Member]
Loans by risk rating
Total Loans	416	202
Special Mention [Member] | Real estate - commercial | Commercial Real Estate, Non Owner Occupied Special Purpose Loan [Member]
Loans by risk rating
Total Loans	3,525	1,510
Special Mention [Member] | Real estate - commercial | Commercial Real Estate, Retail Properties Loan [Member]
Loans by risk rating
Total Loans	588
Special Mention [Member] | Real estate - commercial | Commercial Real Estate, Farm Loan [Member]
Loans by risk rating
Total Loans	1,027	1,249
Special Mention [Member] | Real estate - residential | Residential Owner Occupied Loan [Member]
Loans by risk rating
Total Loans	134
Special Mention [Member] | Real estate - residential | Residential Revolving and Junior Liens Loan [Member]
Loans by risk rating
Total Loans	12
Substandard [Member]
Loans by risk rating
Total loans, excluding PCI loans	33,013	35,269
PCI loans, net of purchase accounting adjustments	7,767	7,152
Total Loans	40,780	42,421
Substandard [Member] | Multifamily
Loans by risk rating
Total Loans	503
Substandard [Member] | Commercial
Loans by risk rating
Total Loans	11,688	137
Substandard [Member] | Finance Leases Portfolio Segment
Loans by risk rating
Total Loans	329
Substandard [Member] | Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Loans by risk rating
Total Loans	2,267	5,278
Substandard [Member] | Real estate - commercial | Commercial Real Estate Owner Occupied Special Purpose Loan [Member]
Loans by risk rating
Total Loans	4,479	4,135
Substandard [Member] | Real estate - commercial | Commercial Real Estate, Non Owner Occupied General Purpose Loan [Member]
Loans by risk rating
Total Loans	3,780	8,366
Substandard [Member] | Real estate - commercial | Commercial Real Estate, Non Owner Occupied Special Purpose Loan [Member]
Loans by risk rating
Total Loans		3,099
Substandard [Member] | Real estate - commercial | Commercial Real Estate, Retail Properties Loan [Member]
Loans by risk rating
Total Loans	1,146	1,783
Substandard [Member] | Real estate - commercial | Commercial Real Estate, Farm Loan [Member]
Loans by risk rating
Total Loans	1,210	1,222
Substandard [Member] | Real estate - residential | Residential Investor Loan [Member]
Loans by risk rating
Total Loans	1,390	1,216
Substandard [Member] | Real estate - residential | Multifamily
Loans by risk rating
Total Loans		979
Substandard [Member] | Real estate - residential | Residential Owner Occupied Loan [Member]
Loans by risk rating
Total Loans	3,631	4,524
Substandard [Member] | Real estate - residential | Residential Revolving and Junior Liens Loan [Member]
Loans by risk rating
Total Loans	1,969	1,889
Substandard [Member] | Unallocated Financing Receivables [Member]
Loans by risk rating
Total Loans	359	31
PCI
Loans by risk rating
Total Loans	8,601	10,965
Non-PCI
Loans by risk rating
Total loans, excluding PCI loans	1,922,211	1,886,062
Construction Loans
Loans by risk rating
Total Loans		109,135	$ 85,162
PCI loans, net of purchase accounting adjustments	600	745
Total Loans	70,217
Construction Loans | Real estate - commercial | Construction Real Estate, Homebuilder Loan [Member]
Loans by risk rating
Total Loans	5,300	5,102
Construction Loans | Real estate - commercial | Construction Real Estate, Land Loan [Member]
Loans by risk rating
Total Loans	12,379	2,744
Construction Loans | Real estate - commercial | Construction Real Estate, Commercial Speculative Loan [Member]
Loans by risk rating
Total Loans	37,571	55,410
Construction Loans | Real estate - commercial | Construction Real Estate, Other Receivable [Member]
Loans by risk rating
Total Loans	14,367	45,134
Construction Loans | Pass [Member] | Real estate - commercial | Construction Real Estate, Homebuilder Loan [Member]
Loans by risk rating
Total Loans	5,300	5,102
Construction Loans | Pass [Member] | Real estate - commercial | Construction Real Estate, Land Loan [Member]
Loans by risk rating
Total Loans	12,379	2,744
Construction Loans | Pass [Member] | Real estate - commercial | Construction Real Estate, Commercial Speculative Loan [Member]
Loans by risk rating
Total Loans	37,571	55,410
Construction Loans | Pass [Member] | Real estate - commercial | Construction Real Estate, Other Receivable [Member]
Loans by risk rating
Total Loans	14,105	42,524
Construction Loans | Substandard [Member] | Real estate - commercial | Construction Real Estate, Other Receivable [Member]
Loans by risk rating
Total Loans	$ 262	$ 2,610

Loans - Repossessed Assets (Det

Loans - Repossessed Assets (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Repossessed and foreclosed assets
Other real estate owned	$ 5,004,000	$ 7,175,000	$ 8,371,000	$ 11,916,000
Consumer
Repossessed and foreclosed assets
Mortgage loans in process of foreclosure	$ 831,000	$ 448,000

Loans - Impaired Loans - Record

Loans - Impaired Loans - Recorded Investment, Unpaid Principal Balance and Related Allowance (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Recorded Investment
With no related allowance recorded	$ 9,447,000	$ 7,844,000
With an allowance recorded	8,570,000	12,515,000
Total impaired loans, excluding PCI loans	18,017,000	20,359,000
PCI loans, net of purchase accounting adjustments	2,624,000
Total impaired loans	20,641,000	20,359,000
Unpaid Principal Balance
With no related allowance recorded	12,217,000	9,895,000
With an allowance recorded	8,589,000	13,936,000
Total impaired loans, excluding PCI loans	20,806,000	23,831,000
PCI loans, net of purchase accounting adjustments	4,686,000
Total impaired loans	25,492,000	23,831,000
Related Allowance
Total impaired loans, excluding PCI loans	1,135,000	352,000
PCI loans, net of purchase accounting adjustments	77,000
Total impaired loans with a recorded allowance	1,135,000	352,000
Total impaired loans	1,212,000
Multifamily
Recorded Investment
With no related allowance recorded	68,000
Unpaid Principal Balance
With no related allowance recorded	68,000
Commercial
Recorded Investment
With an allowance recorded	144,000
Unpaid Principal Balance
With an allowance recorded	147,000
Related Allowance
Total impaired loans with a recorded allowance	93,000
Finance Leases Portfolio Segment
Recorded Investment
With no related allowance recorded	70,000
With an allowance recorded	259,000
Unpaid Principal Balance
With no related allowance recorded	73,000
With an allowance recorded	259,000
Related Allowance
Total impaired loans with a recorded allowance	100,000
Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Recorded Investment
With no related allowance recorded	861,000	1,659,000
With an allowance recorded	106,000	396,000
Unpaid Principal Balance
With no related allowance recorded	915,000	1,782,000
With an allowance recorded	106,000	396,000
Related Allowance
Total impaired loans with a recorded allowance	1,000	3,000
Real estate - commercial | Commercial Real Estate Owner Occupied Special Purpose Loan [Member]
Recorded Investment
With no related allowance recorded	1,573,000	395,000
With an allowance recorded	2,815,000
Unpaid Principal Balance
With no related allowance recorded	2,069,000	530,000
With an allowance recorded	2,815,000
Related Allowance
Total impaired loans with a recorded allowance	815,000
Real estate - commercial | Commercial Real Estate, Non Owner Occupied General Purpose Loan [Member]
Recorded Investment
With no related allowance recorded	444,000	1,138,000
With an allowance recorded	159,000	3,098,000
Unpaid Principal Balance
With no related allowance recorded	471,000	1,159,000
With an allowance recorded	170,000	4,038,000
Related Allowance
Total impaired loans with a recorded allowance	14,000	97,000
Real estate - commercial | Commercial Real Estate, Non Owner Occupied Special Purpose Loan [Member]
Recorded Investment
With an allowance recorded		3,099,000
Unpaid Principal Balance
With an allowance recorded		3,575,000
Related Allowance
Total impaired loans with a recorded allowance		139,000
Real estate - commercial | Commercial Real Estate, Retail Properties Loan [Member]
Recorded Investment
With no related allowance recorded	1,146,000
Unpaid Principal Balance
With no related allowance recorded	1,183,000
Real estate - residential | Residential Investor Loan [Member]
Recorded Investment
With no related allowance recorded	872,000	353,000
With an allowance recorded	787,000	808,000
Unpaid Principal Balance
With no related allowance recorded	1,022,000	459,000
With an allowance recorded	787,000	808,000
Related Allowance
Total impaired loans with a recorded allowance	10,000	4,000
Real estate - residential | Residential Owner Occupied Loan [Member]
Recorded Investment
With no related allowance recorded	2,924,000	3,359,000
With an allowance recorded	3,249,000	3,676,000
Unpaid Principal Balance
With no related allowance recorded	4,415,000	4,882,000
With an allowance recorded	3,251,000	3,679,000
Related Allowance
Total impaired loans with a recorded allowance	40,000	46,000
Real estate - residential | Residential Revolving and Junior Liens Loan [Member]
Recorded Investment
With no related allowance recorded	1,394,000	884,000
With an allowance recorded	1,034,000	1,357,000
Unpaid Principal Balance
With no related allowance recorded	1,866,000	1,003,000
With an allowance recorded	1,035,000	1,357,000
Related Allowance
Total impaired loans with a recorded allowance	56,000	49,000
Consumer
Recorded Investment
With no related allowance recorded	2,000	7,000
With an allowance recorded	17,000	24,000
Unpaid Principal Balance
With no related allowance recorded	3,000	7,000
With an allowance recorded	19,000	25,000
Related Allowance
Total impaired loans with a recorded allowance	6,000	13,000
Construction Loans | Real estate - commercial | Construction Real Estate, Other Receivable [Member]
Recorded Investment
With no related allowance recorded	93,000	49,000
With an allowance recorded		57,000
Unpaid Principal Balance
With no related allowance recorded	$ 132,000	73,000
With an allowance recorded		58,000
Related Allowance
Total impaired loans with a recorded allowance		$ 1,000

Loans - Impaired Loans - Averag

Loans - Impaired Loans - Average Recorded Investment and Interest Income Recognized (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Average Recorded Investment
With no related allowance recorded	$ 8,646	$ 11,350	$ 18,047
With an allowance recorded	10,542	8,886	3,153
Total impaired loans, excluding PCI loans	19,188	20,236	21,200
PCI loans, net of purchase accounting adjustments	1,312
Total impaired loans	20,500	20,236	21,200
Interest Income Recognized
With no related allowance recorded	62	48	45
With an allowance recorded	269	278	201
Total impaired loans, excluding PCI loans	331	326	246
PCI loans, net of purchase accounting adjustments	132
Total impaired loans	463	326	246
Commercial
Average Recorded Investment
With no related allowance recorded			120
With an allowance recorded	72
Finance Leases Portfolio Segment
Average Recorded Investment
With no related allowance recorded	35	89	272
With an allowance recorded	129
Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Average Recorded Investment
With no related allowance recorded	1,260	1,057	1,168
With an allowance recorded	251	198
Interest Income Recognized
With no related allowance recorded	6	8
With an allowance recorded	13	29
Real estate - commercial | Commercial Real Estate Owner Occupied Special Purpose Loan [Member]
Average Recorded Investment
With no related allowance recorded	984	369	364
With an allowance recorded	1,408
Real estate - commercial | Commercial Real Estate, Non Owner Occupied General Purpose Loan [Member]
Average Recorded Investment
With no related allowance recorded	791	1,150	1,453
With an allowance recorded	1,628	1,549	123
Interest Income Recognized
With an allowance recorded	4
Real estate - commercial | Commercial Real Estate, Non Owner Occupied Special Purpose Loan [Member]
Average Recorded Investment
With no related allowance recorded			507
With an allowance recorded	1,550	1,549
Real estate - commercial | Commercial Real Estate, Retail Properties Loan [Member]
Average Recorded Investment
With no related allowance recorded	573	541	1,130
Real estate - residential | Residential Investor Loan [Member]
Average Recorded Investment
With no related allowance recorded	613	362	1,106
With an allowance recorded	798	818	414
Interest Income Recognized
With no related allowance recorded	8
With an allowance recorded	44	43	43
Real estate - residential | Multifamily
Average Recorded Investment
With no related allowance recorded	34	2,362	2,362
Real estate - residential | Residential Owner Occupied Loan [Member]
Average Recorded Investment
With no related allowance recorded	3,141	4,283	7,516
With an allowance recorded	3,462	3,560	2,123
Interest Income Recognized
With no related allowance recorded	43	39	44
With an allowance recorded	156	150	123
Real estate - residential | Residential Revolving and Junior Liens Loan [Member]
Average Recorded Investment
With no related allowance recorded	1,139	1,005	1,804
With an allowance recorded	1,196	1,171	493
Interest Income Recognized
With no related allowance recorded	5	1	1
With an allowance recorded	52	56	35
Consumer
Average Recorded Investment
With no related allowance recorded	5	7	4
With an allowance recorded	20	12
Construction Loans | Real estate - commercial | Construction Real Estate, Commercial Speculative Loan [Member]
Average Recorded Investment
With no related allowance recorded			37
Construction Loans | Real estate - commercial | Construction Real Estate, Other Receivable [Member]
Average Recorded Investment
With no related allowance recorded	71	125	$ 204
With an allowance recorded	$ 28	$ 29

Loans - TDR (Details)

Loans - TDR (Details)	12 Months Ended		24 Months Ended
	Dec. 31, 2019USD ($)contract	Dec. 31, 2018USD ($)contract	Dec. 31, 2019USD ($)
Troubled debt restructurings - modified during the period
# of contracts | contract	7	21
Pre-modification recorded investment	$ 2,076,000	$ 1,894,000
Post-modification recorded investment	1,949,000	$ 1,709,000
TDR's defaulted
# of contracts		0	0
Other information
Commitments to lend to borrowers whose loans were classified as impaired	0		$ 0
Total Past Due	16,935,000	$ 11,906,000	16,935,000
Real estate - commercial | Commercial Real Estate Owner Occupied Special Purpose Loan [Member]
Other information
Total Past Due	852,000	$ 961,000	852,000
Real estate - commercial | Commercial Real Estate Owner Occupied Special Purpose Loan [Member] | Others [Member]
Troubled debt restructurings - modified during the period
# of contracts | contract		1
Pre-modification recorded investment		$ 110,000
Post-modification recorded investment		46,000
Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Other information
Total Past Due	$ 2,411,000	$ 1,801,000	2,411,000
Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member] | Others [Member]
Troubled debt restructurings - modified during the period
# of contracts | contract		1
Pre-modification recorded investment		$ 427,000
Post-modification recorded investment		396,000
Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member] | Deferral [Member]
Troubled debt restructurings - modified during the period
# of contracts | contract	1
Pre-modification recorded investment	$ 421,000
Post-modification recorded investment	418,000
Real estate - commercial | Commercial Real Estate, Non Owner Occupied General Purpose Loan [Member]
Other information
Total Past Due	$ 1,064,000	3,035,000	1,064,000
Real estate - commercial | Commercial Real Estate, Non Owner Occupied General Purpose Loan [Member] | Others [Member]
Troubled debt restructurings - modified during the period
# of contracts | contract	1
Pre-modification recorded investment	$ 58,000
Post-modification recorded investment	$ 54,000
Real estate - commercial | Commercial Real Estate, Retail Properties Loan [Member]
Other information
Total Past Due		620,000
Real estate - commercial | Commercial Real Estate, Retail Properties Loan [Member] | Others [Member]
Troubled debt restructurings - modified during the period
# of contracts | contract	1
Pre-modification recorded investment	$ 1,159,000
Post-modification recorded investment	1,146,000
Real estate - commercial | Construction Loans | Construction Real Estate, Commercial Speculative Loan [Member]
Other information
Total Past Due		350,000
Real estate - residential | Residential Investor Loan [Member]
Other information
Total Past Due	266,000	957,000	266,000
Real estate - residential | Residential Owner Occupied Loan [Member]
Other information
Total Past Due	$ 4,801,000	$ 1,946,000	4,801,000
Real estate - residential | Residential Owner Occupied Loan [Member] | Others [Member]
Troubled debt restructurings - modified during the period
# of contracts | contract		1
Pre-modification recorded investment		$ 34,000
Post-modification recorded investment		$ 29,000
Real estate - residential | Residential Owner Occupied Loan [Member] | Home Affordable Modification Program [Member]
Troubled debt restructurings - modified during the period
# of contracts | contract	3	4
Pre-modification recorded investment	$ 399,000	$ 502,000
Post-modification recorded investment	293,000	443,000
Real estate - residential | Residential Revolving and Junior Liens Loan [Member]
Other information
Total Past Due	$ 803,000	$ 775,000	803,000
Real estate - residential | HELOC | Others [Member]
Troubled debt restructurings - modified during the period
# of contracts | contract		9
Pre-modification recorded investment		$ 622,000
Post-modification recorded investment		$ 600,000
Real estate - residential | HELOC | Home Affordable Modification Program [Member]
Troubled debt restructurings - modified during the period
# of contracts | contract		3
Pre-modification recorded investment		$ 117,000
Post-modification recorded investment		$ 115,000
Real estate - residential | HELOC | Rate
Troubled debt restructurings - modified during the period
# of contracts | contract		1
Pre-modification recorded investment		$ 24,000
Post-modification recorded investment		$ 24,000
Real estate - residential | HELOC | Residential Revolving and Junior Liens Loan [Member]
Troubled debt restructurings - modified during the period
# of contracts | contract	1
Pre-modification recorded investment	$ 39,000
Post-modification recorded investment	38,000
Real estate - construction | Construction Real Estate All Other [Member] | Home Affordable Modification Program [Member]
Troubled debt restructurings - modified during the period
# of contracts | contract		1
Pre-modification recorded investment		$ 58,000
Post-modification recorded investment		56,000
Commercial
Other information
Total Past Due	4,299,000	410,000	4,299,000
90 Days or Greater Past Due
Other information
Total Past Due	2,545,000	917,000	2,545,000
90 Days or Greater Past Due | Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Other information
Total Past Due		33,000
90 Days or Greater Past Due | Real estate - commercial | Commercial Real Estate, Non Owner Occupied General Purpose Loan [Member]
Other information
Total Past Due	343,000		343,000
90 Days or Greater Past Due | Real estate - commercial | Construction Loans | Construction Real Estate, Commercial Speculative Loan [Member]
Other information
Total Past Due		350,000
90 Days or Greater Past Due | Real estate - residential | Residential Revolving and Junior Liens Loan [Member]
Other information
Total Past Due	18,000		18,000
90 Days or Greater Past Due | Commercial
Other information
Total Past Due	$ 2,103,000	$ 352,000	$ 2,103,000

Loans - Accretable Discount on

Loans - Accretable Discount on Purchased Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Beginning balance	$ 8,935	$ 835
Purchases		11,269
Accretion	(2,069)	(2,635)
Charge-offs	(1,557)
Transfers		(534)
Ending balance	5,309	8,935
PCI
Accretable discount	522	1,099
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Beginning balance	1,099
Beginning balance	5,969
Purchases		1,551
Purchases		6,536
Accretion	(413)	(424)
Accretion	(606)	(434)
Charge-offs	(170)
Charge-offs	(1,387)
Transfers	(6)	(28)
Transfers	(6)	(133)
Ending balance	522	1,099
Ending balance	3,970	5,969
Non-PCI
Accretable discount	817	1,867
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Beginning balance	1,867	835
Purchases		3,182
Accretion	(1,050)	(1,777)
Transfers		(373)
Ending balance	$ 817	$ 1,867

Loans - Related Parties (Detail

Loans - Related Parties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Loans to principal officers, directors, and their affiliates
Beginning balance	$ 1,417	$ 1,524
New loans	635	89
Repayments and other reductions	(1,025)	(196)
Change in related party status	(64)
Ending balance	$ 963	$ 1,417

Allowance for Loan Losses (Deta

Allowance for Loan Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Allowance for loan losses:
Beginning Balance	$ 19,006	$ 17,461	$ 16,158
Charge-offs	2,051	2,097	2,306
Recoveries	1,234	2,414	1,809
Provision (release)	1,600	1,228	1,800
Ending Balance	19,789	19,006	17,461
Ending balance: Individually evaluated for impairment	1,135	352	144
Ending balance: Collectively evaluated for impairment	18,577	18,654	17,317
Ending balance: Acquired and accounted for ASC 310-30	77
Loans:
Ending balance	1,930,812	1,897,027	1,617,622
Ending balance	1,930,812	1,897,027
Ending balance: Individually evaluated for impairment	18,017	20,359	20,112
Ending balance: Collectively evaluated for impairment	1,904,194	1,865,703	1,597,510
Ending balance: Acquired and accounted for ASC 310-30	8,601	10,965
Commercial
Allowance for loan losses:
Beginning Balance		2,453	1,629
Charge-offs			25
Recoveries			30
Provision (release)			819
Ending Balance			2,453
Ending balance: Collectively evaluated for impairment			2,453
Loans:
Ending balance	332,842	314,323	272,851
Ending balance: Collectively evaluated for impairment			272,851
Commercial without Leases
Allowance for loan losses:
Beginning Balance	2,832	2,453
Charge-offs	109	41
Recoveries	74	157
Provision (release)	218	263
Ending Balance	3,015	2,832	2,453
Ending balance: Individually evaluated for impairment	93
Ending balance: Collectively evaluated for impairment	2,922	2,832
Loans:
Ending balance		314,323
Ending balance	332,842
Ending balance: Individually evaluated for impairment	144
Ending balance: Collectively evaluated for impairment	332,698	314,323
Commercial leases
Allowance for loan losses:
Beginning Balance	734	692
Charge-offs	49	13
Provision (release)	577	55
Ending Balance	1,262	734	692
Ending balance: Individually evaluated for impairment	100
Ending balance: Collectively evaluated for impairment	1,162	734
Loans:
Ending balance	119,751
Ending balance: Individually evaluated for impairment	329
Ending balance: Collectively evaluated for impairment	119,422	78,806
Finance Leases Portfolio Segment
Allowance for loan losses:
Beginning Balance		692	633
Charge-offs			215
Provision (release)			274
Ending Balance			692
Ending balance: Collectively evaluated for impairment			692
Loans:
Ending balance	119,751	78,806	68,325
Ending balance: Individually evaluated for impairment			178
Ending balance: Collectively evaluated for impairment			68,147
Real estate - commercial
Allowance for loan losses:
Beginning Balance	10,470	9,522	9,547
Charge-offs	1,019	1,548	309
Recoveries	684	447	161
Provision (release)	1,040	2,049	123
Ending Balance	11,175	10,470	9,522
Ending balance: Individually evaluated for impairment	830	239
Ending balance: Collectively evaluated for impairment	10,285	10,231	9,522
Ending balance: Acquired and accounted for ASC 310-30	60
Loans:
Ending balance		825,123	750,991
Ending balance	869,019
Ending balance: Individually evaluated for impairment	7,104	9,785	3,041
Ending balance: Collectively evaluated for impairment	858,495	811,156	747,950
Ending balance: Acquired and accounted for ASC 310-30	3,420	4,182
Real estate - residential
Allowance for loan losses:
Beginning Balance	1,931	1,846	2,178
Charge-offs	118	(45)	1,347
Recoveries	103	1,146	980
Provision (release)	99	(1,106)	35
Ending Balance	2,015	1,931	1,846
Ending balance: Individually evaluated for impairment	50	50	53
Ending balance: Collectively evaluated for impairment	1,965	1,881	1,793
Loans:
Ending balance		413,106	313,397
Ending balance	401,482
Ending balance: Individually evaluated for impairment	7,900	8,196	14,575
Ending balance: Collectively evaluated for impairment	389,001	398,872	298,822
Ending balance: Acquired and accounted for ASC 310-30	4,581	6,038
Consumer
Allowance for loan losses:
Beginning Balance	1,449	1,446	1,331
Charge-offs	338	147	386
Recoveries	172	364	243
Provision (release)	(111)	(214)	258
Ending Balance	1,172	1,449	1,446
Ending balance: Individually evaluated for impairment	56	49	91
Ending balance: Collectively evaluated for impairment	1,116	1,400	1,355
Loans:
Ending balance		140,442	112,833
Ending balance	123,457
Ending balance: Individually evaluated for impairment	2,428	2,241	2,110
Ending balance: Collectively evaluated for impairment	121,029	138,201	110,723
Unallocated Financing Receivables [Member]
Allowance for loan losses:
Beginning Balance	621	579	451
Charge-offs	409	409	1
Recoveries	200	265	18
Provision (release)	225	186	111
Ending Balance	637	621	579
Ending balance: Individually evaluated for impairment	6	13
Ending balance: Collectively evaluated for impairment	614	608	579
Ending balance: Acquired and accounted for ASC 310-30	17
Loans:
Ending balance	14,044	16,092	14,063
Ending balance	14,044
Ending balance: Individually evaluated for impairment	19	31	7
Ending balance: Collectively evaluated for impairment	14,025	16,061	14,056
Construction Loans
Allowance for loan losses:
Beginning Balance	969	923	389
Charge-offs	9	(16)	23
Recoveries	1	35	377
Provision (release)	(448)	(5)	180
Ending Balance	513	969	923
Ending balance: Individually evaluated for impairment		1
Ending balance: Collectively evaluated for impairment	513	968	923
Loans:
Ending balance		109,135	85,162
Ending balance	70,217
Ending balance: Individually evaluated for impairment	93	106	201
Ending balance: Collectively evaluated for impairment	69,524	108,284	$ 84,961
Ending balance: Acquired and accounted for ASC 310-30	$ 600	$ 745

Other Real Estate Owned (Detail

Other Real Estate Owned (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Activity in the other real estate owned (OREO) portfolio, net of valuation reserve
Balance at beginning of period	$ 7,175	$ 8,371	$ 11,916
Property additions	872	3,316	3,796
Property improvements		59
Less: Property disposals, net of gains/losses	2,515	3,990	5,633
Less: Period valuation adjustments	519	581	1,708
Less: Other adjustments	9
Balance at end of period	5,004	7,175	8,371
Activity in the valuation allowance
Balance at beginning of period	8,027	8,208	9,982
Provision for unrealized losses	519	581	1,708
Reductions taken on sales	(1,834)	(762)	(3,482)
Balance at end of period	6,712	8,027	8,208
Expenses related to foreclosed assets, net of lease revenue
Gain on sales, net	(264)	(792)	(474)
Provision for unrealized losses	519	581	1,708
Operating expenses	173	649	1,227
Less: Lease revenue	5	42	296
Expenses related to OREO, net of lease revenue	$ 423	$ 396	$ 2,165

Premises and Equipment (Details

Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Premises and equipment
Cost	$ 111,968	$ 107,845
Accumulated Depreciation/Amortization	67,614	65,406
Net Book Value	44,354	42,439
Land [Member]
Premises and equipment
Cost	18,501	18,501
Net Book Value	18,501	18,501
Building [Member]
Premises and equipment
Cost	43,457	43,376
Accumulated Depreciation/Amortization	24,912	23,913
Net Book Value	18,545	19,463
Leasehold Improvements [Member]
Premises and equipment
Cost	2,314	710
Accumulated Depreciation/Amortization	399	246
Net Book Value	1,915	464
Furniture and Fixtures [Member]
Premises and equipment
Cost	47,696	45,258
Accumulated Depreciation/Amortization	42,303	41,247
Net Book Value	$ 5,393	$ 4,011

Deposits - Classifications of D

Deposits - Classifications of Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deposits
Noninterest bearing demand	$ 669,795	$ 618,830
Savings	307,015	304,400
NOW accounts	425,792	425,878
Money market accounts	282,478	310,390
Certificates of deposit of less than $100,000	227,578	230,781
Certificates of deposit of $100,000 up to $250,000	151,279	159,953
Certificates of deposit of $250,000 or more	62,812	66,441
Total deposits	$ 2,126,749	$ 2,116,673

Deposits - Scheduled maturities

Deposits - Scheduled maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Oct. 28, 2016
Time	$ 441,669	$ 457,175
Noninterest bearing demand	669,795	618,830
Brokered certificates
Brokered certificates of deposit	31,400	30,400
Deposits held by senior officers and directors, including their related interests	2,900	1,600
Time Deposit Maturities
2019	354,394
2020	51,594
2021	18,125
2022	9,948
2023	7,608
Total	$ 441,669	$ 457,175
Talmer
Deposits			$ 48,900

Borrowings - Summary (Details)

Borrowings - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Borrowings
Senior Notes	$ 44,270	$ 44,158
Total borrowings	205,870	313,355
Securities Sold under Agreements to Repurchase [Member]
Borrowings
Total borrowings	48,693	46,632
Federal Home Loan Bank Advances [Member]
Borrowings
Total borrowings	48,500	149,500
Junior Subordinated Debt
Borrowings
Total borrowings	57,734	57,686
Senior Notes.
Borrowings
Total borrowings	44,270	44,158
Notes Payable to Banks [Member]
Borrowings
Total borrowings	$ 6,673	$ 15,379

Borrowings - Additional informa

Borrowings - Additional information (Details)	12 Months Ended
	Dec. 31, 2019USD ($)item	Dec. 31, 2018USD ($)	Apr. 20, 2018USD ($)
Borrowings
Threshold percentage of stockholders' equity	10.00%
Borrowings at FHLBC as percentage of total assets	35.00%
FHLBC advance amount		$ 15,300,000
Bank owned FHLBC stock	$ 3,700,000	7,200,000
Fair value of securities collateralized	54,600,000
Principal balance of loans collateralized	644,500,000
Maximum borrowing capacity	491,700,000
Amount available for additional borrowings	327,300,000
Senior notes	44,270,000	44,158,000
Debt issuance costs	644,000	692,000
Total borrowings	205,870,000	$ 313,355,000
GCFC/ABC Bank
Borrowings
FHLBC advance amount	$ 6,700,000
Subordinated Debt.			$ 6,600,000
Debt Instrument, Term	6 years 3 months	7 years 3 months
Debt assumed	$ 23,400,000
GCFC/ABC Bank | Minimum [Member]
Borrowings
Interest rate (as a percent)		1.40%
GCFC/ABC Bank | Maximum [Member]
Borrowings
Interest rate (as a percent)	2.83%	2.83%
Securities Sold under Agreements to Repurchase [Member]
Borrowings
Carrying amount of securities secured	$ 48,700,000	$ 46,600,000
Fair value of the pledged collateral	$ 70,700,000	72,800,000
Number of customers having secured balances exceeding specified percentage of stockholders equity | item	0
Total borrowings	$ 48,693,000	46,632,000
Securities Sold under Agreements to Repurchase [Member] | Minimum [Member]
Borrowings
Maturity	1 day
Securities Sold under Agreements to Repurchase [Member] | Maximum [Member]
Borrowings
Maturity	90 days
Federal Home Loan Bank Advances [Member]
Borrowings
FHLBC advance amount	$ 48,500,000	149,500,000
Total borrowings	$ 48,500,000	$ 149,500,000
FHLB advances at 1.44 %
Borrowings
Interest rate (as a percent)	1.78%	2.50%
Notes Payable to Banks [Member]
Borrowings
Total borrowings	$ 6,673,000	$ 15,379,000
Junior Subordinated Debt
Borrowings
Total borrowings	$ 57,734,000	$ 57,686,000
Senior Notes.
Borrowings
Interest rate (as a percent)	5.75%
Debt Instrument, Term		10 years
Interest rate term	5 years
Debt issuance costs	$ 730,000	$ 842,000
Amortization period for deferred financing costs		10 years
Total borrowings	$ 44,270,000	$ 44,158,000
Senior Notes. | Debt Instrument, Variable Rate Base LIBOR [Member]
Borrowings
Basis points added to reference rate (as a percent)	385.00%

Borrowings - Maturities and Wei

Borrowings - Maturities and Weighted Average Rates (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Scheduled maturities and weighted average rates of borrowings
Year one	$ 97,193	$ 196,132
Year two		8,500
Thereafter	108,677	108,723
Total	$ 205,870	$ 313,355
Weighted Average Rate
Year one (as a percent)	1.85%	1.78%
Year two (as a percent)		2.05%
Thereafter (as a percent)	6.11%	6.07%
Total (as a percent)	4.10%	3.28%

Junior Subordinated Debentures

Junior Subordinated Debentures - Issuance (Details)	Jan. 28, 2020USD ($)	Dec. 31, 2019USD ($)	Apr. 30, 2007USD ($)	Jul. 31, 2003USD ($)	Jun. 30, 2003USD ($)	Jun. 15, 2017	Dec. 31, 2017	Dec. 31, 2019USD ($)item	Dec. 31, 2018USD ($)
Junior subordinated debentures
Junior subordinated debentures		$ 57,734,000						$ 57,734,000	$ 57,686,000
Junior Subordinated Debentures issuance cost		644,000						644,000	692,000
Subordinated debentures		$ 57,734,000						$ 57,734,000	$ 57,686,000
Old Second Capital Trust I
Junior subordinated debentures
Proceeds from sale of cumulative trust preferred securities				$ 4,100,000	$ 27,500,000
Maturity Period								30 years
Cash distribution rate of trust preferred securities (as a percent)								7.80%
Amortization period								30 years
Old Second Capital Trust II [Member]
Junior subordinated debentures
Proceeds from sale of cumulative trust preferred securities			$ 25,000,000
Maturity Period								30 years
Cash distribution fixed rate of trust preferred securities (as a percent)		4.40%				6.77%			4.37%
Basis points added to cash distribution floating rate base (as a percent)							1.50%
Cash distribution, floating rate base									three-month LIBOR
Junior Subordinated Debt
Junior subordinated debentures
Junior subordinated debentures	$ 32,604,000
Interest Payment Deferment Period | item								20
Subordinated debentures	$ 32,604,000
Junior Subordinated Debt | Old Second Capital Trust I
Junior subordinated debentures
Cash distribution rate of trust preferred securities (as a percent)	7.80%
Junior subordinated debentures		$ 32,600,000						$ 32,600,000
Subordinated debentures		32,600,000						32,600,000
Redemption Price	$ 10
Redemption Price percentage of liquidation amount	100.00%
Junior Subordinated Debt | Old Second Capital Trust II [Member]
Junior subordinated debentures
Junior subordinated debentures		25,800,000						25,800,000
Subordinated debentures		$ 25,800,000						$ 25,800,000
7.8% subordinated debentures
Junior subordinated debentures
Interest rate (as a percent)	7.80%

Income Taxes - Components (Deta

Income Taxes - Components (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Components of income tax expense (benefit)
Current federal	$ 4,815		$ (2,407)
Current state	1,151	$ 84
Deferred federal	3,177	6,226	11,724
Deferred state	3,259	3,614	1,938
Recovery due to State of Illinois tax rate change			(1,566)
Expense due to enactment of federal tax reform			9,475
Total income tax expenses	12,402	9,924	$ 19,164
Deferred tax assets
Allowance for loan losses	6,082	5,803
Deferred compensation	907	665
Goodwill amortization/impairment	3,456	4,698
Stock based compensation	1,622	1,377
Business combination adjustments	1,547	2,532
OREO write downs	1,931	2,337
Federal net operating loss ("NOL") carryforward	340	2,199
State net operating loss ("NOL") carryforward	326	4,034
Other assets	2,270	1,401
Total deferred tax assets	18,481	25,046
Deferred tax liabilities
Accumulated depreciation on premises and equipment	(746)	(443)
Mortgage servicing rights	(1,779)	(2,210)
Amortization of core deposit intangible	(144)	(130)
State tax benefits	(927)	(1,839)
Other liabilities	(1,637)	(741)
Total deferred tax liabilities	(5,233)	(5,363)
Net deferred tax asset before valuation allowance	13,248	19,683
Tax effect of adjustments related to other comprehensive loss	(1,789)	1,597
Net deferred tax asset	$ 11,459	$ 21,280
Corporate federal tax rate	21.00%	35.00%

Income Taxes - Carryforwards (D

Income Taxes - Carryforwards (Details)	Dec. 31, 2019USD ($)
Net operating loss carryforward
Built-in loss carryforward	$ 1,600,000
Built-in loss carryforward subject to section 382	945,000
State | 2025
Net operating loss carryforward
Net operating loss carryforward	$ 1,900,000

Income Taxes - Components of De

Income Taxes - Components of Deferred Income Tax Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Components of the provision for deferred income taxes
Provision for loan losses	$ (279)	$ (426)	$ 1,680
Deferred compensation	(242)	(15)	85
Amortization of core deposit intangible	14	957	574
Stock option compensation	(245)	(511)	80
Business combination adjustments	985	927
OREO write downs	406	48	2,725
Federal net operating loss carryforward	1,859	5,041	12,122
State net operating loss carryforward	3,708	2,986	715
Deferred tax credit			2,058
Depreciation	303	59	(297)
Mortgage servicing rights	(431)	124	(674)
Goodwill amortization/impairment	1,242	1,389	4,040
State tax benefits	(912)	(550)	(1,738)
Other, net	28	(189)	201
Total deferred tax benefit	6,436	9,840	21,571
Difference between effective tax rates and federal statutory rates applied to financial statement income
Tax at statutory federal income tax rate	10,890	9,227	11,817
Nontaxable interest income, net of disallowed interest deduction	(1,409)	(1,600)	(1,976)
BOLI Income	(480)	(422)	(501)
State income taxes, net of federal benefit	3,496	2,927	1,775
Stock based compensation	(207)	(305)
Impact of Federal tax rate change			9,475
Impact of Illinois tax rate change			(1,566)
Other, net	112	97	140
Total income tax expenses	12,402	9,924	19,164
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest	$ 51,857	$ 43,936	$ 34,302

Equity Compensation Plans - Opt

Equity Compensation Plans - Options (Details) - USD ($)	Dec. 31, 2009	Dec. 31, 2019	Dec. 31, 2018	May 31, 2019
2019 Plan
Equity Compensation Plans
Number of shares authorized				600,000
2009 Plan
Equity Compensation Plans
Granted (in shares)	16,500
Exercised (in shares)		4,500	0
Shares
Exercised (in shares)		(4,500)	0
Employee and Nonemployee Stock Options [Member]
Equity Compensation Plans
Exercised (in shares)		4,500
Total unrecognized compensation cost		$ 0
Shares
Beginning outstanding (in shares)		4,500
Exercised (in shares)		(4,500)
Ending outstanding (in shares)			4,500
Weighted Average Exercise Price
Beginning outstanding (in dollars per share)		$ 7.49
Exercised (in dollars per share)		$ 7.49
Ending outstanding (in dollars per share)			$ 7.49
Weighted Average Remaining Contractual Term (years)
Ending outstanding (in years)			1 month 6 days
Aggregate Intrinsic Value
Exercised (in dollars)		$ (27,000)	$ (27,000)
Ending outstanding (in dollars)			$ 25,000
Restricted Stock and Restricted Stock Units [Member]
Equity Compensation Plans
Vesting period		3 years

Equity Compensation Plans - Sum

Equity Compensation Plans - Summary of stock option activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Summary Of Stock Option Activity [Abstract]
Cash received from options exercised	$ 32	$ 33
Number of shares issuable	447,781
Stock based compensation	$ 2,516	2,257	$ 1,181
Vesting Percentage , Fully Vest , Performace measure	50.00%
Minimum [Member]
Summary Of Stock Option Activity [Abstract]
Vesting Percentage , Fully Vest , Performace measure	50.00%
Maximum [Member]
Summary Of Stock Option Activity [Abstract]
Vesting Percentage , Pro rata , Performace measure	50.00%
Employee and Nonemployee Stock Options [Member]
Summary Of Stock Option Activity [Abstract]
Intrinsic value of options exercised	$ 27	27
Cash received from options exercised	32	33
Tax benefit realized from option exercises	$ 5	$ 5

Equity Compensation Plans - Res

Equity Compensation Plans - Restricted Stock and RSUs (Details) - Restricted Stock and Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Changes in unvested awards
Nonvested at the beginning of the period (in shares)	552,281
Granted (in shares)	171,356	254,281
Vested (in shares)	(168,354)
Nonvested at the end of the period (in shares)	555,283	552,281
Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 11.30
Granted (in dollars per share)	12.75
Vested (in dollars per share)	7.68
Nonvested at the end of the period (in dollars per share)	$ 12.85	$ 11.30
Additional information
Total unrecognized compensation cost of restricted awards	$ 3
Expected weighted-average period for recognition of unrecognized compensation	1 year 9 months 29 days

Earnings Per Share - Reconcilia

Earnings Per Share - Reconciliation (Details) - USD ($)	Jan. 16, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018
Basic earnings per share:
Weighted-average common shares outstanding		29,891,046	29,728,308	29,600,702
Net income		$ 39,455,000	$ 34,012,000	$ 15,138,000
Basic earnings per share (in dollars per share)		$ 1.32	$ 1.14	$ 0.51
Diluted earnings per share:
Weighted-average common shares outstanding		29,891,046	29,728,308	29,600,702
Diluted average common shares outstanding		30,416,348	30,308,935	30,038,417
Net earnings available to common stockholders		$ 39,455,000	$ 34,012,000	$ 15,138,000
Diluted earnings per share (in dollars per share)		$ 1.30	$ 1.12	$ 0.50
Antidilutive securities				815,339
Warrants to purchase shares of common stock	815,339
Warrants, exercise price (in dollars per share)	$ 13.43
Market price per share	$ 14.23
Number os shares issued	45,836
Reduction in additional paid up capital	$ 313,000
Warrant [Member]
Diluted earnings per share:
Antidilutive securities					815,339
Warrants, exercise price (in dollars per share)			$ 13.43		$ 13.43
Restricted Stock and Restricted Stock Units [Member]
Diluted earnings per share:
Dilutive effect of share-based payment awards (in shares)		525,302	532,692	435,142
Employee and Nonemployee Stock Options [Member]
Diluted earnings per share:
Dilutive effect of share-based payment awards (in shares)			47,935	2,573

Commitments - Summary of Financ

Commitments - Summary of Financial Instrument Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fixed Letters of Credit [Member]
Financial instrument commitments
Financial instrument commitments	$ 910	$ 859
Fixed Letters of Credit [Member] | Commitments to Extend Credit to Borrowers [Member]
Financial instrument commitments
Financial instrument commitments	910	859
Fixed Letters of Credit [Member] | Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit [Member]
Financial instrument commitments
Financial instrument commitments	339	327
Fixed Letters of Credit [Member] | Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee [Member]
Financial instrument commitments
Financial instrument commitments	571	532
Fixed Letters of Credit [Member] | Unused lines of Credit [Member]
Financial instrument commitments
Loan commitments	111,348	89,303
Variable Letters of Credit [Member]
Financial instrument commitments
Financial instrument commitments	15,891	14,003
Variable Letters of Credit [Member] | Commitments to Extend Credit to Borrowers [Member]
Financial instrument commitments
Financial instrument commitments	15,824	13,936
Variable Letters of Credit [Member] | Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit [Member]
Financial instrument commitments
Financial instrument commitments	9,612	7,158
Variable Letters of Credit [Member] | Commitments to Extend Credit to Borrowers [Member] | Standby Letters of Credit [Member]
Financial instrument commitments
Financial instrument commitments		397
Variable Letters of Credit [Member] | Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee [Member]
Financial instrument commitments
Financial instrument commitments	6,212	6,381
Variable Letters of Credit [Member] | Commitments to Extend Credit Nonborrowers [Member] | Performance Guarantee [Member]
Financial instrument commitments
Financial instrument commitments	67	67
Variable Letters of Credit [Member] | Unused lines of Credit [Member]
Financial instrument commitments
Loan commitments	320,120	297,785
Letter of Credit [Member]
Financial instrument commitments
Financial instrument commitments	16,801	14,862
Letter of Credit [Member] | Commitments to Extend Credit to Borrowers [Member]
Financial instrument commitments
Financial instrument commitments	16,734	14,795
Letter of Credit [Member] | Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit [Member]
Financial instrument commitments
Financial instrument commitments	9,951	7,485
Letter of Credit [Member] | Commitments to Extend Credit to Borrowers [Member] | Standby Letters of Credit [Member]
Financial instrument commitments
Financial instrument commitments		397
Letter of Credit [Member] | Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee [Member]
Financial instrument commitments
Financial instrument commitments	6,783	6,913
Letter of Credit [Member] | Commitments to Extend Credit Nonborrowers [Member] | Performance Guarantee [Member]
Financial instrument commitments
Financial instrument commitments	67	67
Letter of Credit [Member] | Unused lines of Credit [Member]
Financial instrument commitments
Loan commitments	$ 431,468	$ 387,088

Commitments - Lease Commitments

Commitments - Lease Commitments and Legal Proceedings (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Estimated aggregate minimum annual rental commitments
2019	$ 496,000
2020	742,000
2021	621,000
2022	612,000
2023	628,000
2024	3,940,000
Aggregate future minimum rental income receivable under noncancelable leases	42,000
Total facility net operating lease revenue/expense	248,000	$ 180,000	$ 64,000
Total ATM lease expense	$ 916,000	$ 979,000	$ 679,000

Regulatory & Capital Matters (D

Regulatory & Capital Matters (Details)	Dec. 31, 2019	Dec. 31, 2018
Regulatory & Capital Matters
Tier 1 capital leverage ratio (as a percent)	11.93%	10.08%
Risk-based capital ratio (as a percent)	14.53%	12.63%
Subsidiaries [Member]
Regulatory & Capital Matters
Tier 1 capital leverage ratio (as a percent)	12.50%	11.36%
Risk-based capital ratio (as a percent)	15.23%	14.14%
Minimum [Member] | Subsidiaries [Member]
Regulatory & Capital Matters
Tier 1 capital leverage ratio (as a percent)	8.00%
Risk-based capital ratio (as a percent)	12.00%

Regulatory & Capital Matters -

Regulatory & Capital Matters - Capital Levels and Industry Defined Regulatory Minimums (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Common equity tier 1 capital to risk weighted assets
Actual	$ 251,477	$ 207,597
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 158,020	$ 142,458
Common equity tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	11.14%	9.29%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	7.00%	6.375%
Total capital to risk weighted assets, Amount
Actual at period end	$ 327,886	$ 282,126
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 236,944	$ 220,585
Total capital to risk weighted assets, Ratio
Risk-based capital ratio (as a percent)	14.53%	12.63%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	10.50%	9.875%
Tier 1 capital to risk weighted assets, Amount
Actual	$ 308,102	$ 263,125
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 191,858	$ 175,901
Tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	13.65%	11.78%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	8.50%	7.875%
Tier 1 capital to average assets, Amount
Actual	$ 308,102	$ 263,125
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 103,303	$ 104,415
Tier 1 capital to average assets, Ratio
Tier 1 capital leverage ratio (as a percent)	11.93%	10.08%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	4.00%	4.00%
Subsidiaries [Member]
Common equity tier 1 capital to risk weighted assets
Actual	$ 322,496	$ 295,599
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	157,315	141,794
Minimum Required to Be Well Capitalized	$ 146,078	$ 144,574
Common equity tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	14.35%	13.29%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	7.00%	6.375%
Minimum Required to Be Well Capitalized (as a percent)	6.50%	6.50%
Total capital to risk weighted assets, Amount
Actual at period end	$ 342,280	$ 314,600
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	235,978	219,708
Minimum Required to Be Well Capitalized	$ 224,741	$ 222,489
Total capital to risk weighted assets, Ratio
Risk-based capital ratio (as a percent)	15.23%	14.14%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	10.50%	9.875%
Minimum Required to Be Well Capitalized (as a percent)	10.00%	10.00%
Tier 1 capital to risk weighted assets, Amount
Actual	$ 322,496	$ 295,599
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	191,026	175,157
Minimum Required to Be Well Capitalized	$ 179,789	$ 177,938
Tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	14.35%	13.29%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	8.50%	7.875%
Minimum Required to Be Well Capitalized (as a percent)	8.00%	8.00%
Tier 1 capital to average assets, Amount
Actual	$ 322,496	$ 295,599
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	103,199	104,084
Minimum Required to Be Well Capitalized	$ 128,998	$ 130,105
Tier 1 capital to average assets, Ratio
Tier 1 capital leverage ratio (as a percent)	12.50%	11.36%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	4.00%	4.00%
Minimum Required to Be Well Capitalized (as a percent)	5.00%	5.00%

Regulatory & Capital Matters _2

Regulatory & Capital Matters - Dividend Restrictions and Deferrals (Details)	12 Months Ended
	Dec. 31, 2019
Dividend Restrictions and Deferrals
Number of previous years retained profit considered for dividend payment	2 years
Minimum capital requirements, minimum percentage required	2.50%

Mortgage Banking Derivatives (D

Mortgage Banking Derivatives (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Mortgage Banking Derivatives
Amount of loans sold to investors	$ 164,700
Proceeds from sale of loan to investors	168,472	$ 137,622	$ 151,289
Gain on sale of loan	5,112	3,791	$ 4,803
Federal National Mortgage Association [Member]
Mortgage Banking Derivatives
Amount of loans sold to investors	$ 122,400
Federal National Mortgage Association [Member] | Customer Concentration Risk [Member]
Mortgage Banking Derivatives
Percentage of concentration risk	74.40%
Federal Home Loan Mortgage Corporation [Member]
Mortgage Banking Derivatives
Amount of loans sold to investors	$ 18,700
Federal Home Loan Mortgage Corporation [Member] | Customer Concentration Risk [Member]
Mortgage Banking Derivatives
Percentage of concentration risk	11.40%
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member]
Mortgage Banking Derivatives
Notional or Contractual Amount	$ 13,500	9,315
Fair value	(15)	(50)
Not Designated as Hedging Instrument [Member] | Interest Rate Lock Commitments [Member]
Mortgage Banking Derivatives
Notional or Contractual Amount	10,167	8,815
Fair value	$ 265	$ 209

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair Value Measurements
Fair value transfer assets , level 1 to level 2	$ 0	$ 0
Fair value transfer assets , level 2 to level 1	0	0
Fair value transfer liabilitiess , level 1 to level 2	0	0
Fair value transfer liabilities , level 2 to level 1	0	0
Fair value transfer assets into level 3	0	0
Fair value transfer assets out of level 3	0	0
Fair value transfer liabilities into level 3	0	0
Fair value transfer liabilities out of level 3	$ 0	$ 0

Fair Value Measurements - Recur

Fair Value Measurements - Recurring (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Assets:
Securities available-for-sale	$ 484,648	$ 541,248
Mortgage servicing rights	5,935	7,357
US Treasury Securities [Member]
Assets:
Securities available-for-sale	4,036	3,923
US Government Corporations and Agencies Securities [Member]
Assets:
Securities available-for-sale		10,951
US States and Political Subdivisions Debt Securities [Member]
Assets and liabilities measured at fair value on a recurring basis
Purchases	17,938	22,046
Assets:
Securities available-for-sale	249,175	274,067
Collateralized Mortgage Obligations [Member]
Assets:
Securities available-for-sale	57,984	64,429
Asset-backed Securities [Member]
Assets:
Securities available-for-sale	81,844	109,514
Collateralized loan obligations
Assets:
Securities available-for-sale	66,684	64,289
Fair Value, Inputs, Level 1 [Member]
Assets:
Securities available-for-sale	4,036	3,923
Fair Value, Inputs, Level 2 [Member]
Assets:
Securities available-for-sale	475,193	529,160
Loans held-for-sale	3,061	2,984
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]
Liabilities:
Other liabilities	3,101	58
Level 3
Assets:
Securities available-for-sale	5,419	8,165
Recurring
Assets:
Loans held-for-sale	3,061	2,984
Mortgage servicing rights	5,935	7,357
Total financial assets	496,665	552,420
Liabilities:
Total	5,974	756
Recurring | Interest Rate Swap [Member]
Assets:
Other assets	2,771	672
Liabilities:
Other liabilities	5,974	756
Recurring | Forward Contracts [Member]
Assets:
Other assets	250	159
Recurring | US Treasury Securities [Member]
Assets:
Securities available-for-sale	4,036	3,923
Recurring | US Government Corporations and Agencies Securities [Member]
Assets:
Securities available-for-sale	8,337	10,951
Recurring | Mortgage Backed Securities, Issued by US Government Agencies [Member]
Assets:
Securities available-for-sale	16,588	14,075
Recurring | US States and Political Subdivisions Debt Securities [Member]
Assets:
Securities available-for-sale	249,175	274,067
Recurring | Collateralized Mortgage Obligations [Member]
Assets:
Securities available-for-sale	57,984	64,429
Recurring | Asset-backed Securities [Member]
Assets:
Securities available-for-sale	81,844	109,514
Recurring | Collateralized loan obligations
Assets:
Securities available-for-sale	66,684	64,289
Recurring | Fair Value, Inputs, Level 1 [Member]
Assets:
Total financial assets	4,036	3,923
Recurring | Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member]
Assets:
Securities available-for-sale	4,036	3,923
Recurring | Fair Value, Inputs, Level 2 [Member]
Assets:
Loans held-for-sale	3,061	2,984
Total financial assets	481,275	532,975
Liabilities:
Total	5,974	756
Recurring | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]
Assets:
Other assets	2,771	672
Liabilities:
Other liabilities	5,974	756
Recurring | Fair Value, Inputs, Level 2 [Member] | Forward Contracts [Member]
Assets:
Other assets	250	159
Recurring | Fair Value, Inputs, Level 2 [Member] | US Government Corporations and Agencies Securities [Member]
Assets:
Securities available-for-sale	8,337	10,951
Recurring | Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities, Issued by US Government Agencies [Member]
Assets:
Securities available-for-sale	16,588	14,075
Recurring | Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member]
Assets:
Securities available-for-sale	243,756	265,902
Recurring | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations [Member]
Assets:
Securities available-for-sale	57,984	64,429
Recurring | Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities [Member]
Assets:
Securities available-for-sale	81,844	109,514
Recurring | Fair Value, Inputs, Level 2 [Member] | Collateralized loan obligations
Assets:
Securities available-for-sale	66,684	64,289
Recurring | Level 3
Assets:
Mortgage servicing rights	5,935	7,357
Total financial assets	11,354	15,522
Recurring | Level 3 | US States and Political Subdivisions Debt Securities [Member]
Assets:
Securities available-for-sale	$ 5,419	$ 8,165

Fair Value Measurements - Chang

Fair Value Measurements - Changes in Level 3 (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Changes in Level 3
Transfers into Level 3	$ 0	$ 0
Transfers out of Level 3	0	0
Collateralized loan obligations
Changes in Level 3
Beginning balance		2,268,000
Transfers out of Level 3		(1,308,000)
Total gains or losses
Included in earnings (or changes in net assets)		35,000
Included in other comprehensive income		40,000
Purchases, issuances, sales, and settlements
Settlements		(1,035,000)
US States and Political Subdivisions Debt Securities [Member]
Changes in Level 3
Beginning balance	8,165,000	14,261,000
Total gains or losses
Included in earnings (or changes in net assets)	(32,000)
Included in other comprehensive income	726,000	(746,000)
Purchases, issuances, sales, and settlements
Purchases	17,938,000	22,046,000
Settlements	(21,378,000)	(27,396,000)
Ending balance	5,419,000	8,165,000
Mortgage Servicing Rights [Member]
Changes in Level 3
Beginning balance	7,357,000	6,944,000
Total gains or losses
Included in earnings (or changes in net assets)	(1,953,000)	(181,000)
Purchases, issuances, sales, and settlements
Issuances	1,240,000	1,146,000
Settlements	(709,000)	(552,000)
Ending balance	$ 5,935,000	$ 7,357,000

Fair Value Measurements - Quant

Fair Value Measurements - Quantitative and Qualitative Information (Details)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	$ 5,935,000	$ 7,357,000
Securities available-for-sale, at fair value	484,648,000	541,248,000
Level 3
Quantitative information about Level 3 fair value measurements
Securities available-for-sale, at fair value	5,419,000	8,165,000
US States and Political Subdivisions Debt Securities [Member]
Quantitative information about Level 3 fair value measurements
Securities available-for-sale, at fair value	249,175,000	274,067,000
Collateralized Mortgage Obligations [Member]
Quantitative information about Level 3 fair value measurements
Securities available-for-sale, at fair value	57,984,000	64,429,000
Recurring
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	5,935,000	7,357,000
Recurring | Level 3
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	5,935,000	7,357,000
Recurring | US States and Political Subdivisions Debt Securities [Member]
Quantitative information about Level 3 fair value measurements
Securities available-for-sale, at fair value	249,175,000	274,067,000
Recurring | US States and Political Subdivisions Debt Securities [Member] | Level 3
Quantitative information about Level 3 fair value measurements
Securities available-for-sale, at fair value	5,419,000	8,165,000
Recurring | Collateralized Mortgage Obligations [Member]
Quantitative information about Level 3 fair value measurements
Securities available-for-sale, at fair value	57,984,000	64,429,000
Recurring | Measurement Input, Discount Rate | Mortgage Servicing Rights [Member] | Discounted Cash Flow | Level 3
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	$ 5,935,000	$ 7,357,000
Recurring | Measurement Input, Discount Rate | Mortgage Servicing Rights [Member] | Discounted Cash Flow | Level 3 | Minimum [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	10	10
Recurring | Measurement Input, Discount Rate | Mortgage Servicing Rights [Member] | Discounted Cash Flow | Level 3 | Maximum [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	58.8	229.7
Recurring | Measurement Input, Discount Rate | Mortgage Servicing Rights [Member] | Discounted Cash Flow | Level 3 | Weighted Average [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	10.1	10.2
Recurring | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights [Member] | Discounted Cash Flow | Level 3 | Minimum [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	0	7
Recurring | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights [Member] | Discounted Cash Flow | Level 3 | Maximum [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	69	68.9
Recurring | Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights [Member] | Discounted Cash Flow | Level 3 | Weighted Average [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	14.1	9.6

Fair Value Measurements - Nonre

Fair Value Measurements - Nonrecurring (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Assets and liabilities measured at fair value
Valuation allowance	$ 1,212,000
Valuation allowance	1,135,000	$ 352,000
Carrying value of other real estate owned	5,004,000	7,175,000	$ 8,371,000	$ 11,916,000
OREO Valuation allowance	6,712,000	8,027,000	$ 8,208,000	$ 9,982,000
Fair Value, Measurements, Nonrecurring [Member]
Assets and liabilities measured at fair value
Total	12,439,000	19,338,000
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]
Assets and liabilities measured at fair value
Total	7,435,000	12,163,000
Valuation allowance	8,600,000	12,500,000
Increase (decrease) of specific allocations within the provision for loan losses	783,000	(208,000)
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member]
Assets and liabilities measured at fair value
Total	5,004,000	7,175,000
Carrying value of other real estate owned	5,000,000	7,200,000
Outstanding balance	12,600,000	16,100,000
OREO Valuation allowance	6,700,000	8,000,000
OREO participations	937,000	900,000
Fair Value, Measurements, Nonrecurring [Member] | Level 3
Assets and liabilities measured at fair value
Total	12,439,000	19,338,000
Fair Value, Measurements, Nonrecurring [Member] | Level 3 | Impaired Loans [Member]
Assets and liabilities measured at fair value
Total	7,435,000	12,163,000
Fair Value, Measurements, Nonrecurring [Member] | Level 3 | Other Real Estate Owned [Member]
Assets and liabilities measured at fair value
Total	$ 5,004,000	$ 7,175,000

Fair Values of Financial Inst_3

Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financial assets:
Cash and due from banks	$ 34,096	$ 38,599
Interest bearing deposits with financial institutions	16,536	16,636
Securities available-for-sale	484,648	541,248
FHLBC and FRBC Stock	9,917	13,433
Bank-owned life insurance	61,763	61,544
Financial liabilities:
Noninterest bearing deposits	669,795	618,830
Other short-term borrowings	48,500	149,500
Junior subordinated debentures	57,734	57,686
Reported Value Measurement [Member]
Financial assets:
Cash and due from banks	34,096	38,599
Interest bearing deposits with financial institutions	16,536	16,636
Securities available-for-sale	484,648	541,248
FHLBC and FRBC Stock	9,917	13,433
Loans held for sale	3,061	2,984
Net loans	1,911,023	1,878,021
Accrued interest receivable	9,697	10,940
Financial liabilities:
Noninterest bearing deposits	669,795	618,830
Interest bearing deposits	1,456,954	1,497,843
Securities sold under repurchase agreements	48,693	46,632
Other short-term borrowings	48,500	149,500
Junior subordinated debentures	57,734	57,686
Senior notes	44,270	44,158
Note payable and other borrowings	6,673	15,379
Borrowing interest payable	96	281
Deposit interest payable	983	973
Estimate of Fair Value Measurement [Member]
Financial assets:
Cash and due from banks	34,096	38,599
Interest bearing deposits with financial institutions	16,536	16,636
Securities available-for-sale	484,648	541,248
FHLBC and FRBC Stock	9,917	13,433
Loans held for sale	3,061	2,984
Net loans	1,915,531	1,867,594
Accrued interest receivable	9,697	10,940
Financial liabilities:
Noninterest bearing deposits	669,795	618,830
Interest bearing deposits	1,457,832	1,495,614
Securities sold under repurchase agreements	48,693	46,632
Other short-term borrowings	48,500	149,500
Junior subordinated debentures	51,188	47,625
Senior notes	46,269	45,008
Note payable and other borrowings	7,003	15,364
Borrowing interest payable	96	281
Deposit interest payable	983	973
Fair Value, Inputs, Level 1 [Member]
Financial assets:
Cash and due from banks	34,096	38,599
Interest bearing deposits with financial institutions	16,536	16,636
Securities available-for-sale	4,036	3,923
Financial liabilities:
Noninterest bearing deposits	669,795	618,830
Junior subordinated debentures	33,614	32,989
Senior notes	46,269	45,008
Fair Value, Inputs, Level 2 [Member]
Financial assets:
Securities available-for-sale	475,193	529,160
FHLBC and FRBC Stock	9,917	13,433
Loans held for sale	3,061	2,984
Accrued interest receivable	9,697	10,940
Financial liabilities:
Interest bearing deposits	1,457,832	1,495,614
Securities sold under repurchase agreements	48,693	46,632
Other short-term borrowings	48,500	149,500
Junior subordinated debentures	17,574	14,636
Note payable and other borrowings	7,003	15,364
Borrowing interest payable	96	281
Deposit interest payable	983	973
Level 3
Financial assets:
Securities available-for-sale	5,419	8,165
Net loans	1,915,531	1,867,594
Interest Rate Swap [Member] | Reported Value Measurement [Member]
Financial liabilities:
Interest rate swap	3,101	58
Interest Rate Swap [Member] | Estimate of Fair Value Measurement [Member]
Financial liabilities:
Interest rate swap	3,101	58
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member]
Financial liabilities:
Interest rate swap	$ 3,101	$ 58

Financial Instruments with Of_3

Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions - Fair Value of Derivatives (Details)	1 Months Ended	12 Months Ended
	Dec. 31, 2019USD ($)item	Dec. 31, 2019USD ($)item	Dec. 31, 2018USD ($)item
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Loan pool hedge	$ 50,000,000	$ 50,000,000
Term of interest rate risk cash flow hedge	5 years
Designated as Hedging Instrument [Member]
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Derivative liabilities designated as hedging instruments, fair value	$ 3,150,000	$ 3,150,000	$ 58,000
Designated as Hedging Instrument [Member] | Interest Rate Products | OSBC Affiliates
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Derivative, number of transactions | item	2	2	1
Notional Amount	$ 75,774,000	$ 75,774,000	$ 25,774,000
Derivative liabilities designated as hedging instruments, fair value	3,150,000	3,150,000	58,000
Not Designated as Hedging Instrument [Member]
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Derivative assets designated as hedging instruments, fair value	3,170,000	3,170,000	831,000
Derivative liabilities designated as hedging instruments, fair value	$ 2,973,000	$ 2,973,000	$ 698,000
Not Designated as Hedging Instrument [Member] | Interest Rate Products | Commercial Loan Customers
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Derivative, number of transactions | item	25	25	25
Notional Amount	$ 177,872,000	$ 177,872,000	$ 188,931,000
Derivative assets designated as hedging instruments, fair value	2,920,000	2,920,000	672,000
Derivative liabilities designated as hedging instruments, fair value	2,920,000	$ 2,920,000	$ 672,000
Weighted average maturity		5 years 10 months 24 days	6 years 7 months 6 days
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Cash collateral pledged with financial institutions, dollars	114,000	$ 114,000	$ 260,000
Investment securities pledged with financial institutions, dollars	$ 11,000,000	$ 11,000,000	$ 0
Number of correspondent financial institutions where investment securities are pledged		1	1
Number of financial institutions where investment securities are required to be pledged | item		2
Not Designated as Hedging Instrument [Member] | Interest Rate Lock Commitments and Forward Contracts
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Derivative, number of transactions | item	87	87	63
Notional Amount	$ 23,667,000	$ 23,667,000	$ 18,130,000
Derivative assets designated as hedging instruments, fair value	$ 250,000	$ 250,000	$ 159,000
Not Designated as Hedging Instrument [Member] | Other Contracts
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Derivative, number of transactions | item	4	4	3
Notional Amount	$ 28,176,000	$ 28,176,000	$ 18,155,000
Derivative liabilities designated as hedging instruments, fair value	53,000	53,000	26,000
Not Designated as Hedging Instrument [Member] | Forward Contracts [Member]
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Notional Amount	13,500,000	13,500,000	$ 9,315,000
Interest Income [Member]
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Amount to be reclassified as a reduction to interest expense during the next twelve months	17,000	17,000
Interest Expense [Member]
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Amount to be reclassified as a reduction to interest expense during the next twelve months	$ 274,000	$ 274,000

Financial Instruments with Of_4

Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions - Effect of Fair Value (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income	$ 3,100,000	$ 1,200,000
Amount of Gain or (Loss) Recognized in Income on Derivative	$ 50,000	$ 168,000

Preferred Stock (Details)

Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2015	Dec. 31, 2014	Jan. 16, 2019	Dec. 31, 2018	Dec. 31, 2017	Mar. 31, 2009
Preferred Stock
Warrants to purchase the Company's common stock, initially authorized (in shares)				815,339
Warrants, exercise price (in dollars per share)				$ 13.43
Preferred stock, Shares authorized					300,000	300,000
Series B Preferred Stock [Member]
Preferred Stock
Fair value							$ 68.2
Shares redeemed (in shares)		73,000	73,000
Warrant [Member]
Preferred Stock
Warrants, term	10 years
Warrants to purchase the Company's common stock, initially authorized (in shares)	815,339
Warrants, exercise price (in dollars per share)	$ 13.43
Fair value							$ 4.8

Parent Company Condensed Fina_3

Parent Company Condensed Financial Information - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Assets
Other assets	$ 26,474	$ 23,473
Total assets	2,635,545	2,676,003
Liabilities and Stockholders' Equity
Other short-term borrowings	48,500	149,500
Junior subordinated debentures	57,734	57,686
Senior Notes	44,270	44,158
Other liabilities	25,062	16,894
Stockholders' equity	277,864	229,081	$ 200,350	$ 175,210
Total liabilities and stockholders' equity	2,635,545	2,676,003
Parent Company [Member]
Assets
Noninterest bearing deposit with bank subsidiary	26,562	9,039
Investment in subsidiaries	352,703	315,252
Other assets	3,981	12,997
Total assets	383,246	337,288
Liabilities and Stockholders' Equity
Other short-term borrowings		4,000
Junior subordinated debentures	57,734	57,686
Senior Notes	44,270	44,158
Other liabilities	3,378	2,363
Stockholders' equity	277,864	229,081
Total liabilities and stockholders' equity	$ 383,246	$ 337,288

Parent Company Condensed Fina_4

Parent Company Condensed Financial Information - Condensed Statements of Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating Expenses
Junior subordinated debentures	$ 3,724	$ 3,716	$ 4,002
Senior notes	2,699	2,688	2,689
Income (loss) before income taxes and equity in undistributed net income of subsidiaries	51,857	43,936	34,302
Income tax benefit	12,402	9,924	19,164
Net income available to common stockholders	39,455	34,012	15,138
Parent Company [Member]
Operating Income
Cash dividends received from subsidiaries	20,000	30,000
Other income	109	106	114
Total operating income	20,109	30,106	114
Operating Expenses
Junior subordinated debentures	3,724	3,716	4,002
Senior notes	2,700	2,688	2,689
Other interest expense	13	98
Other expenses	4,025	4,208	2,639
Total operating expense	10,462	10,710	9,330
Income (loss) before income taxes and equity in undistributed net income of subsidiaries	9,647	19,396	(9,216)
Income tax benefit	(3,187)	(3,355)	(16)
Income (loss) before equity in undistributed net income of subsidiaries	12,834	22,751	(9,200)
Equity in undistributed net income of subsidiaries	26,621	11,261	24,338
Net income available to common stockholders	$ 39,455	$ 34,012	$ 15,138

Parent Company Condensed Fina_5

Parent Company Condensed Financial Information -Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash Flows from Operating Activities
Net income	$ 39,455	$ 34,012	$ 15,138
Adjustments to reconcile net income (loss) to net cash from operating activities:
Provision for deferred tax expense (benefit)	6,436	9,840	21,571
Net deferred tax expense due to DTA revaluation	6,436	9,840	13,662
Change in taxes payable	1,546	1,678	(2,519)
Stock-based compensation	2,516	2,257	1,181
Net cash provided by operating activities	52,637	54,907	37,105
Cash paid for acquisition, net of cash and cash equivalent retained		(35,711)
Net cash provided by investing activities	42,212	(25,841)	(132,487)
Cash Flows from Financing Activities
Dividends paid common stock	(1,195)	(1,189)	(1,184)
Purchases of treasury stock	(666)	(505)	(236)
Payment of senior note issuance costs			(42)
Repayments of notes payable	(8,798)	(8,069)
Proceeds from exercise of stock options	32	33
Net cash used in financing activities	(99,452)	(29,664)	103,881
Net change in cash and cash equivalents	(4,603)	(598)	8,499
Cash and cash equivalents at beginning of period	55,235	55,833	47,334
Cash and cash equivalents at end of period	50,632	55,235	55,833
Parent Company [Member]
Cash Flows from Operating Activities
Net income	39,455	34,012	15,138
Adjustments to reconcile net income (loss) to net cash from operating activities:
Equity in undistributed net income of subsidiaries	(26,621)	(11,261)	(24,338)
Provision for deferred tax expense (benefit)	4,186	6,697	6,397
Net deferred tax expense due to DTA revaluation			3,908
Change in taxes payable	3,896	(1,211)	(4,797)
Change in other assets		97	74
Stock-based compensation	2,516	2,257	1,181
Other, net	(80)	172	(15)
Net cash provided by operating activities	23,352	30,763	(2,452)
Cash paid for acquisition, net of cash and cash equivalent retained		(47,074)
Net cash provided by investing activities		(47,074)
Cash Flows from Financing Activities
Net change in other short-term borrowings	(4,000)	4,000
Dividends paid common stock	(1,195)	(1,189)	(1,184)
Purchases of treasury stock	(666)	(505)	(236)
Payment of senior note issuance costs			(42)
Proceeds from exercise of stock options	32	33
Net cash used in financing activities	(5,829)	2,339	(1,462)
Net change in cash and cash equivalents	17,523	(13,972)	(3,914)
Cash and cash equivalents at beginning of period	9,039	23,011	26,925
Cash and cash equivalents at end of period	$ 26,562	$ 9,039	$ 23,011

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended	24 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Employee Benefit Plans
Expense relating to the 401(k) plan	$ 785
Company obligations under Voluntary Deferred Compensation Plan for Executives		$ 3,000	$ 2,200
Old Second Bancorp Inc Employees 401(k) Savings Plan and Trust
Employee Benefit Plans
Company's discretionary matching contributions to the Plan (as a percent)	100.00%	100.00%
Company's discretionary matching contributions to the Plan (as a percent)		50.00%
Percentage of compensation contributed to the Plan matched by employer (as a percent)		2.00%
Percentage of compensation contributed to the Plan matched by employer	3.00%	3.00%
Participants vesting as percentage of discretionary matching contributions	100.00%
Expense relating to the 401(k) plan		$ 1,100