Old Second Bancorp (OSBC) 10-Q 11 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 05, 2020
Document and Entity Information
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
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		29,684,419
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000357173
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 27,627	$ 34,096
Interest bearing deposits with financial institutions	45,511	16,536
Cash and cash equivalents	73,138	50,632
Securities available-for-sale, at fair value	449,694	484,648
Federal Home Loan Bank Chicago ("FHLBC") and Federal Reserve Bank Chicago ("FRBC") stock	9,917	9,917
Loans held-for-sale	10,049	3,061
Loans	1,957,204	1,930,812
Less: allowance for loan losses	30,045	19,789
Net loans	1,927,159	1,911,023
Premises and equipment, net	44,579	44,354
Other real estate owned	5,049	5,004
Mortgage servicing rights, net	4,108	5,935
Goodwill and core deposit intangible	21,147	21,275
Bank-owned life insurance (BOLI)	61,714	61,763
Deferred tax assets, net	14,292	11,459
Other assets	35,964	26,474
Total assets	2,656,810	2,635,545
Deposits:
Noninterest bearing demand	702,598	669,795
Interest bearing:
Savings, NOW, and money market	1,043,572	1,015,285
Time	449,472	441,669
Total deposits	2,195,642	2,126,749
Securities sold under repurchase agreements	51,236	48,693
Other short-term borrowings	6,375	48,500
Junior subordinated debentures	25,773	57,734
Senior notes	44,297	44,270
Notes payable and other borrowings	26,609	6,673
Other liabilities	41,101	25,062
Total liabilities	2,391,033	2,357,681
Stockholders' Equity
Common stock	34,957	34,854
Additional paid-in capital	121,081	120,657
Retained earnings	209,915	213,723
Accumulated other comprehensive (loss) income	(1,819)	4,562
Treasury stock	(98,357)	(95,932)
Total stockholders' equity	265,777	277,864
Total liabilities and stockholders' equity	$ 2,656,810	$ 2,635,545

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
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	34,957,384	34,853,757
Common stock, Shares outstanding	29,706,390	29,931,809
Treasury stock, Shares	5,250,994	4,921,948

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Interest and Dividend Income
Loans, including fees	$ 23,597	$ 24,099
Loans held-for-sale	36	22
Securities:
Taxable	2,163	2,414
Tax exempt	1,455	2,098
Dividends from FHLBC and FRBC stock	125	149
Interest bearing deposits with financial institutions	75	114
Total interest and dividend income	27,451	28,896
Interest Expense
Savings, NOW, and money market deposits	635	771
Time deposits	1,766	1,618
Securities sold under repurchase agreements	116	149
Other short-term borrowings	109	607
Junior subordinated debentures	1,364	927
Senior notes	673	672
Notes payable and other borrowings	130	116
Total interest expense	4,793	4,860
Net interest and dividend income	22,658	24,036
Provision for credit losses	7,984	450
Net interest and dividend income after provision for loan and lease losses	14,674	23,586
Noninterest Income
Mortgage servicing rights mark to market loss	(2,134)	(819)
Net gain on sales of mortgage loans	2,246	762
Securities gains (losses), net	(24)	27
Change in cash surrender value of BOLI	(49)	458
Debit card interchange income	1,287	1,285
Other income	1,000	828
Total noninterest income	6,322	6,482
Noninterest Expense
Salaries and employee benefits	12,918	11,612
Occupancy, furniture and equipment	2,301	1,989
Computer and data processing	1,335	1,332
FDIC Insurance	57	174
General bank insurance	246	250
Amortization of core deposit intangible	128	132
Advertising expense	109	234
Debit card interchange expense	532	355
Legal fees	131	126
Other real estate expense, net	237	50
Other expense	3,008	2,940
Total noninterest expense	21,002	19,194
Income before income taxes	(6)	10,874
Provision for income taxes	(281)	2,406
Net income available to common stockholders	$ 275	$ 8,468
Basic earnings per share (in dollars per share)	$ 0.01	$ 0.28
Diluted earnings per share (in dollars per share)	0.01	0.28
Dividends declared per share (in dollars per share)	$ 0.01	$ 0.01
Deposit Account
Noninterest Income
Service charges on deposits	$ 1,726	$ 1,862
Trust Income
Noninterest Income
Service charges on deposits	1,532	1,486
Bank Servicing
Noninterest Income
Service charges on deposits	468	457
Secondary mortgage fees
Noninterest Income
Service charges on deposits	$ 270	$ 136

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Consolidated Statements of Comprehensive Income
Net income	$ 275	$ 8,468
Unrealized holding (losses) gains on available-for-sale securities arising during the period	(6,376)	9,192
Related tax benefit (expense)	1,797	(2,587)
Holding (losses) gains after tax on available-for-sale securities	(4,579)	6,605
Less: Reclassification adjustment for the net gains (losses) realized during the period
Net realized gains (losses)	(24)	27
Related tax (expense) benefit	7	(8)
Net realized gains (losses) after tax	(17)	19
Other comprehensive (loss) income on available-for-sale securities	(4,562)	6,586
Changes in fair value of derivatives used for cashflow hedges	(2,530)	(1,073)
Related tax (expense) benefit	711	302
Other comprehensive income on cashflow hedges	(1,819)	(771)
Total other comprehensive (loss) income	(6,381)	5,815
Total comprehensive income	$ (6,106)	$ 14,283

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities
Net income	$ 8,468	$ 275	$ 8,468
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Net premium amortization/discount (accretion) on securities	723	506
Securities (gains) losses, net	(27)	24	(27)
Provision for credit losses	450	7,984	450
Originations of loans held-for-sale	(25,815)	(50,418)
Proceeds from sales of loans held-for-sale	27,224	45,706
Net gain on sales of mortgage loans	(762)	(2,246)	(762)
Change in fair value of mortgage servicing rights	819	2,134	819
Net discount / premium from (accretion) amortization on loans	(110)	(409)
Change in cash surrender value of BOLI	458	(49)	458
Net gains on sale of other real estate owned	(73)	(23)	(73)
Provision for other real estate owned valuation losses		158
Depreciation of fixed assets and amortization of leasehold improvements	638	662
Amortization of core deposit intangible	132	128	132
Change in current income taxes receivable	673	(1,430)
Provision for deferred tax expense	1,732	(333)
Change in accrued interest receivable and other assets	136	(4,081)
Amortization of purchase accounting adjustment on notes payable and other borrowings	27	12
Amortization of junior subordinated debentures issuance costs	12	643
Amortization of senior notes issuance costs	25	27
Change in accrued interest payable and other liabilities	(1,889)	8,925
Stock based compensation	573	729
Net cash provided by operating activities	12,498	9,022
Cash flows from investing activities
Proceeds from maturities and calls including pay down of securities available-for-sale	5,279	16,046
Proceeds from sales of securities available-for-sale	81,524	18,126	81,524
Purchases of securities available-for-sale	(46,176)	(6,100)
Net proceeds from sales of FHLBC stock	2,254
Net change in loans	(6,140)	(27,716)
Proceeds from sales of other real estate owned, net of participation purchase	874	311
Net purchases of premises and equipment	(224)	(887)
Net cash provided by investing activities	37,391	(220)
Cash flows from financing activities
Net change in deposits	6,864	68,893
Net change in securities sold under repurchase agreements	(4,271)	2,543
Net change in other short-term borrowings	(64,500)	(42,125)
Redemption of junior subordinated debentures		(32,604)
Issuance of term note		20,000
Net change in notes payable and other borrowings	(2,199)	(76)
Proceeds from exercise of stock options	32
Dividends paid common stock	(297)	(300)
Purchase of treasury stock	(417)	(2,627)
Net cash used in financing activities	(64,788)	13,704
Net change in cash and cash equivalents	(14,899)	22,506
Cash and cash equivalents at beginning of period		50,632	55,235
Cash and cash equivalents at end of period	$ 40,336	$ 73,138	$ 40,336

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, 2018	$ 34,720	$ 119,081	$ 175,463	$ (4,079)	$ (96,104)	$ 229,081
Increase (Decrease) in Stockholders' Equity
Net income			8,468			8,468
Other comprehensive income, net of tax				5,815		5,815
Dividends declared and paid			(297)			(297)
Vesting of restricted stock	103	(222)			119
Stock options exercised	2	7			23	32
Stock warrants exercised		(313)			313
Stock based compensation		573				573
Purchase of treasury stock					(417)	(417)
Balance at Mar. 31, 2019	34,825	119,126	183,634	1,736	(96,066)	243,255
Balance at Dec. 31, 2019	34,854	120,657	213,723	4,562	(95,932)	277,864
Increase (Decrease) in Stockholders' Equity
Net income			275			275
Other comprehensive income, net of tax				(6,381)		(6,381)
Dividends declared and paid			(300)			(300)
Vesting of restricted stock	103	(305)			202
Stock based compensation		729				729
Purchase of treasury stock from taxes withheld on stock awards					(411)	(411)
Purchase of treasury stock					(2,216)	(2,216)
Balance at Mar. 31, 2020	$ 34,957	$ 121,081	209,915	$ (1,819)	$ (98,357)	265,777
Increase (Decrease) in Stockholders' Equity
Adoption of ASU 2016-13			$ (3,783)			$ (3,783)

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	$ 277,864	$ 229,081
Other comprehensive income, net of tax	(6,381)	5,815
Balance	$ 265,777	$ 243,255
Dividend declared and paid (per share)	$ 0.01	$ 0.01
Accumulated Other Comprehensive Income (Loss) [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	$ 4,562	$ (4,079)
Other comprehensive income, net of tax	(6,381)	5,815
Balance	(1,819)	1,736
Accumulated Unrealized Loss on Securities Available-for-Sale
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	6,827	(4,038)
Other comprehensive income, net of tax	(4,562)	6,586
Balance	2,265	2,548
Accumulated Unrealized Loss on Derivative Instruments
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	(2,265)	(41)
Other comprehensive income, net of tax	(1,819)	(771)
Balance	$ (4,084)	$ (812)

Basis of Presentation and Chang

Basis of Presentation and Changes in Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Basis of Presentation and Changes in Significant Accounting Policies
Basis of Presentation and Changes in Significant Accounting Policies	Note 1 – Basis of Presentation and Changes in Significant Accounting Policies Except as set forth below in this Note 1, the accounting policies followed in the preparation of the interim consolidated financial statements are consistent with those used in the preparation of the annual financial information. The interim consolidated financial statements reflect all normal and recurring adjustments that are necessary, in the opinion of management, for a fair statement of results for the interim period presented. Results for the period ended March 31, 2020, are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. These interim consolidated financial statements are unaudited and should be read in conjunction with the audited financial statements and notes included in Old Second Bancorp, Inc.’s (the “Company”) annual report on Form 10-K for the year ended December 31, 2019. Unless otherwise indicated, amounts in the tables contained in the notes to the consolidated financial statements are in thousands. Certain items in prior periods have been reclassified to conform to the current presentation. The Company’s consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”) and follow general practices within the banking industry. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the consolidated financial statements. Future changes in information may affect these estimates, assumptions, and judgments, which, in turn, may affect amounts reported in the consolidated financial statements. Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments – Credit 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 reflects 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 also requires 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 must 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 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 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 economic environment at that time, we recorded an overall increase in our ACL for loans and leases of $5.9 million and an ACL for unfunded commitments was established of $1.7 million. Approximately $2.5 million of the increase to the ACL on loans resulted from the transfer of the non-accretable purchase accounting adjustments on purchased credit impaired loans. There was no impact from adoption of CECL on securities available-for sale. As a result of the adoption of this new standard on January 1, 2020, we recorded a reduction to retained earnings of approximately $3.7 million, which was net of the $1.4 million deferred tax asset impact stemming from adoption. The Company finalized internal control processes and disclosure documentation related to adoption of this standard during the first quarter of 2020. As of March 31, 2020, a provision for credit losses was recorded based on the current uncertainty experienced in the macroeconomic environment, primarily due to falling interest rates and the impact of COVID-19. This additional ACL was not considered part of the ASU 2016-13 adoption, as these changes in the assessment of the ACL occurred after the January 1, 2020, adoption. We recorded a provision for credit losses of $8.0 million during the first quarter of 2020, comprised of $5.5 million of allowance for credit losses related to loans, and $2.5 million of ACL related to unfunded commitments. We will continue to assess and evaluate the estimated future credit loss impact of current market conditions in subsequent reporting periods, which will be highly dependent on credit quality, macroeconomic forecasts and conditions, the local and national response to the COVID-19 pandemic, as well as the composition of our loans and available-for-sale securities portfolio. Change in Significant Accounting Policies Significant accounting policies are presented in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. These policies, along with the disclosures presented in the other financial statement notes and in this discussion, provide information on how significant assets and liabilities are valued in the consolidated financial statements and how those values are determined. In addition to the significant accounting policies presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, on January 1, 2020, as discussed above, the Company adopted ASU 2016-13, referred to as Current Expected Credit Losses, or CECL, an expected loss methodology which replaces the incurred loss methodology for determining the Company’s provision for loan losses and allowance for loan and lease losses. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with ASU 2016-02 “Leases (Topic 842)” (“ASU 2016-02”). In addition, ASU 2016-13 made changes to the accounting for available-for-sale debt securities. One such change is to require credit-related impairments to be recognized as an allowance for credit losses rather than as a write-down of the securities amortized cost basis when management does not intend to sell or believes that it is not more likely than not that they will be required to sell the securities prior to recovery of the securities amortized cost basis. Allowance for Credit Losses The allowance for credit losses (“ACL”) is an estimate of the expected credit losses on the loans held for investment, unfunded loan commitments, and available-for-sale debt securities portfolios. Allowance for Credit Losses on Loans The ACL is calculated according to GAAP standards and is maintained by management at a level believed adequate to absorb estimated credit losses that are expected to occur within the existing loan portfolio through their contractual terms. The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on loans. Determination of the ACL is inherently subjective in nature 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 ACL is dependent upon a variety of factors beyond the Company’s direct control, including, but not limited to, the performance of the loan portfolio, consideration of current economic trends, changes in interest rates and property values, estimated losses on pools of homogeneous loans based on an analysis that uses historical loss experience for prior periods that are determined to have like characteristics with the current period such as pre-recessionary, recessionary, or recovery periods, 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 ACL is determined separately, the entire balance is available for the entire loan portfolio. The ACL methodology consists of measuring loans on a collective (pool) basis when similar risk characteristics exist. The Company has identified the following loan portfolios and measures the ACL using the following methods: · Commercial loans – the Company uses a migration analysis, and within this segment classifies six different risk levels to assign a loss rate based on historical losses, as well as applying a qualitative factor adjustment in addition to the loss rates applied, as discussed below. · Leases – the Company uses a remaining life methodology, also known as WARM (weighted average remaining life), as this segment is relatively new to the Company and more than four years of the Company’s own historical loss data is not available. In accordance with accounting standards, a peer group has been identified and is used to estimate losses for this portfolio. · Real estate – commercial (“CRE”) – this loan portfolio is segregated into two segments: o CRE owner occupied – the Company uses a migration analysis, and within this segment classifies six different risk levels to assign a loss rate based on historical losses, as well as applying a qualitative adjustment in addition to the loss rates applied, as discussed below. o CRE investor – the Company uses a migration analysis, and within this segment classifies six different risk levels to assign a loss rate based on historical losses, as well as applying a qualitative adjustment in addition to the loss rates applied, as discussed below. · Real estate – construction – the Company uses a static segment analysis, which relies on the Company’s historical loss rates, as well as a qualitative adjustment in addition to the loss rates applied. · Real estate-residential - this loan portfolio is segregated into two segments: o Residential owner occupied and Residential investor – the Company uses a static segment analysis, applying historical loss rates from periods with like characteristics as the current period, and also a qualitative adjustment in addition to the loss rates applied. · Multifamily – the Company uses a migration analysis, and within this segment, the Company classifies six different risk levels to assign a loss rate based on historical losses, as well as applying a qualitative adjustment in addition to the loss rates applied. · HELOCs – this portfolio is segregated into two segments, a HELOC legacy segment which uses a static pool analysis, and a HELOC purchased segment, which uses the WARM method, and applies loss rates from the institutions from which the Company purchased the HELOCs, if available. Purchased credit deteriorated loans (“PCD loans”), are purchased loans that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. The Company records acquired PCD loans by adding the expected credit losses (i.e. allowance for credit losses) to the purchase price of the financial assets rather than recording through the provision for credit losses in the income statement. The expected credit loss, as of the acquisition day, of a PCD loan is added to the allowance for credit losses. The non-credit discount or premium is the difference between the unpaid principal balance and the amortized cost basis as of the acquisition date. Subsequent to the acquisition date, the change in the ACL on PCD loans is recognized through the provision for credit losses. The non-credit discount or premium is accreted or amortized, respectively, into interest income over the remaining life of the PCD loan on a level-yield basis. In accordance with the transition requirements within the standard, the Company’s purchased credit impaired loans (“PCI loans”) were treated as PCD loans. PCI loans meeting nonperforming criteria were historically excluded from our nonperforming disclosures as long as their cash flows and the timing of such cash flows continue to be estimable and probable of collection. As a result of CECL implementation on January 1, 2020, PCI loans became PCD loans. PCD loans that meet the definition of nonperforming are now included in nonperforming disclosures. The qualitative factors applied to each loan portfolio consist of the impact of other internal and external qualitative and credit market factors as assessed by management through a detailed loan review, ACL analysis and credit discussions. These internal and external qualitative and credit market factors include: · changes in lending policies and procedures, including changes in underwriting standards and collections, charge-offs and recovery practices; · changes in international, national, regionally and local conditions (specific factors which impact portfolios or discrepancies with national economic factors which are utilized within the economic forecast); · changes in the experience, depth and ability of lending management; · changes in the volume and severity of past due loans and other similar loan conditions; · changes in the nature and volume of the loan portfolio and terms of loans; · the existence and effect of any concentrations of credit and changes in the levels of such concentrations (this characteristic requires any portfolio exceeding 25% of capital to have a factor considered unless the pool is otherwise well diversified or holds a relatively low inherent risk); · effects of other external factors, such as competition, legal or regulatory factors, on the level of estimated credit losses; · changes in the quality of our loan review functions; and · changes in the value of underlying collateral for collateral dependent loans. The impact of the above listed internal and external qualitative and credit market risk factors is assessed within predetermined ranges to adjust the ACL totals calculated. In addition to the pooled analysis performed for the majority of our loan and commitment balances, we also review those loans that have collateral dependency or nonperforming status which requires a specific review of that loan, per our individually analyzed CECL calculations. Finally, we maintain a component of the ACL for those factors that cannot be quantified in the above analysis or are as yet unknown to us, due to changing economic conditions and other aspects of credit risk; which is known as the Company’s “Other Reserves.” Loans are charged off against the ACL when management believes the uncollectibility of a loan balance is confirmed, while recoveries of amounts previously charged-off are credited to the ACL. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged off. Approved releases from previously established ACL reserves authorized under our ACL methodology also reduce the ACL. Additions to the ACL are established through the provision for credit losses on loans, which is charged to expense. The Company’s ACL methodology is intended to reflect all loan portfolio risk, but management recognizes the inability to accurately depict all future credit losses in a current ACL estimate, as the impact of various factors cannot be fully known. Accrued interest receivable on loans is excluded from the amortized cost basis of financing receivables for the purpose of determining the allowance for credit losses. All calculations conform to GAAP. Allowance for Credit Losses on Unfunded Loan Commitments The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk by a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL related to off-balance sheet credit exposures, which is within other liabilities on the Company’s balance sheet, is estimated at each balance sheet date under the CECL model, and is adjusted as determined necessary through the provision for credit losses on the income statement. The estimate for ACL on unfunded loan commitments includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Allowance for Credit Losses on Securities Available-for-Sale For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will sell, the security before recovery of its amortized cost basis. If either of the aforementioned criteria exists, the Company will record an ACL related to securities available-for-sale with an offsetting entry to the provision for credit losses on securities on the income statement. If either of these criteria does not exist, the Company will evaluate the securities individually to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors, such as market interest rate fluctuations. In evaluating securities available-for sale for potential impairment, the Company considers many factors, including the financial condition and near-term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; and its ability and intent to hold the security for a period of time sufficient for a recovery in value. The Company also considers the extent to which the securities are issued by the federal government or its agencies, and any guarantee of issued amounts by those agencies. The amount of the impairment related to other factors is recognized in other comprehensive income (loss). Accrued interest receivable on securities available-for-sale is excluded from the amortized cost basis of those securities for the purpose of determining the allowance for credit losses. All calculations conform to GAAP. Risks and Uncertainties In December 2019, a novel strain of coronavirus (COVID-19) was reported to have surfaced in China, and has since spread to a number of other countries, including the United States. In March 2020, the World Health Organization declared COVID-19 a global pandemic and the United States declared a National Public Health Emergency. The COVID-19 pandemic has severely restricted the level of economic activity in the Company’s markets. In response to the COVID-19 pandemic, the State of Illinois and most other states have taken preventative or protective actions, such as imposing restrictions on travel and business operations, advising or requiring individuals to limit or forego their time outside of their homes, and ordering temporary closures of businesses that have been deemed to be non-essential. While the Company’s business has been designated an essential business, which allows the Bank to continue to serve its customers, the Company serves many customers that have been deemed, or who are employed by businesses that have been deemed, to be non-essential. Many of the Company’s customers that have been categorized to date as essential businesses, or who are employed by businesses that have been categorized as essential businesses, have been adversely affected by the COVID-19 pandemic. The impact of the COVID-19 pandemic is fluid and continues to evolve. The COVID-19 pandemic and its associated impacts on trade (including supply chains and export levels), travel, employee productivity, unemployment, consumer spending, and other economic activities has resulted in less economic activity, lower equity market valuations and significant volatility and disruption in financial markets, and is anticipated to have a material adverse effect on the Company’s business and results of operations. In addition, due to the COVID-19 pandemic, market interest rates have declined significantly, with the 10-year Treasury bond falling below 1.00% on March 3, 2020 for the first time. On March 3, 2020, the Federal Open Market Committee reduced the targeted federal funds interest rate range by 50 basis points to 1.00% to 1.25%. This range was further reduced to 0% to 0.25% percent on March 16, 2020. These reductions in interest rates and the other effects of the COVID-19 pandemic have had and are expected to continue to have a significant and adverse effect on the Company’s business and results of operations. The ultimate extent of the impact of the COVID-19 pandemic on the Company’s business, financial condition and results of operations is currently uncertain and will depend on various developments and other factors, including, among others, the duration and scope of the pandemic, as well as governmental, regulatory and private sector responses to the pandemic, and the associated impacts on the economy, financial markets and the Company’s customers, employees and vendors. As of March 31, 2020, our consolidated balance sheet included goodwill of $18.6 million. During the first quarter of 2020, we considered whether a quantitative assessment of goodwill was required as a result of the significant economic disruption caused by the COVID-19 pandemic. Impacts of the economic disruptions were noted to have occurred over the latter half of March, specifically, such as a decline in the trading price of our common stock and an increase in the U.S. unemployment rate. After considering qualitative factors regarding the expected impacts of the pandemic on our business, operations and financial condition, we determined that these conditions did not indicate that it is more likely than not that the Company’s carrying value exceeded our fair value as of March 31, 2020, based on information available at this time, as these negative market indicators were not observed over a sustained period of time. However, further delayed recovery or further deterioration in market conditions related to the general economy, financial markets, and the associated impacts on our customers, employees and vendors, among other factors, could significantly impact the impairment analysis and may result in future goodwill impairment charges that, if incurred, could have a material adverse effect on our results of operations and financial condition. Subsequent Events On April 21, 2020, the Company’s Board of Directors declared a cash dividend of $0.01 per share payable on May 11, 2020, to stockholders of record as of May 1, 2020; dividends of $297,000 are scheduled to be paid to stockholders on May 11, 2020.

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2020
Acquisitions
Acquisitions	Note 2 – Acquisitions 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 were 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. These fair value estimates were considered final as of March 31, 2019, and no further refinements to the values recorded are anticipated.

Securities

Securities	3 Months Ended
	Mar. 31, 2020
Securities
Securities	Note 3 – Securities Investment Portfolio Management Our investment portfolio serves the liquidity needs and income objectives of the Company. While the portfolio serves as an important component of the overall liquidity management at the Bank, portions of the portfolio also serve as income producing assets. The size and composition of the portfolio reflects liquidity needs, loan demand and interest income objectives. Portfolio size and composition will be adjusted from time to time. While a significant portion of the portfolio consists of readily marketable securities to address liquidity, other parts of the portfolio may reflect funds invested pending future loan demand or to maximize interest income without undue interest rate risk. Investments are comprised of debt securities and non-marketable equity investments. Securities available-for-sale are carried at fair value. Unrealized gains and losses, net of tax, on securities available-for-sale are reported as a separate component of equity. This balance sheet component changes as interest rates and market conditions change. Unrealized gains and losses are not included in the calculation of regulatory capital. Federal Home Loan Bank of Chicago (“FHLBC”) and Federal Reserve Bank of Chicago (“FRBC”) stock are considered nonmarketable equity investments. FHLBC stock was recorded at $3.7 million at March 31, 2020, and December 31, 2019. FRBC stock was recorded at $6.2 million at March 31, 2020, and December 31, 2019. The following tables summarize the amortized cost and fair value of the securities portfolio at March 31, 2020, and December 31, 2019, and the corresponding amounts of gross unrealized gains and losses: Gross Gross Amortized Unrealized Unrealized Fair March 31, 2020 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 4,011 $ 141 $ - $ 4,152 U.S. government agencies 7,870 - (147) 7,723 U.S. government agencies mortgage-backed 16,021 1,234 - 17,255 States and political subdivisions 244,429 12,353 (1,687) 255,095 Collateralized mortgage obligations 56,104 709 (3,410) 53,403 Asset-backed securities 82,005 210 (4,488) 77,727 Collateralized loan obligations 36,104 69 (1,834) 34,339 Total securities available-for-sale $ 446,544 $ 14,716 $ (11,566) $ 449,694 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2019 Cost 1 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 1 Excludes accrued interest receivable of $3.0 million and $3.2 million at March 31, 2020 and December 31, 2019, respectively, that is recorded in other assets on the consolidated balance sheet. The fair value, amortized cost and weighted average yield of debt securities at March 31, 2020, 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 $ 6,606 2.42 % $ 6,625 Due after one year through five years 6,287 2.11 6,509 Due after five years through ten years 16,117 2.96 16,506 Due after ten years 227,300 3.01 237,330 256,310 2.97 266,970 Mortgage-backed and collateralized mortgage obligations 72,125 3.30 70,658 Asset-backed securities 82,005 2.75 77,727 Collateralized loan obligations 36,104 3.59 34,339 Total securities available-for-sale $ 446,544 3.03 % $ 449,694 At March 31, 2020, the Company’s investments included $55.8 million of asset-backed securities 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 outstanding 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. In addition to the DOE guarantee, total added credit enhancement in the form of overcollateralization and/or subordination amounted to $4.8 million, or 8.52% of outstanding principal. The Company has invested in securities issued from two originators that individually amount to over 10% of the Company’s stockholders equity. Information regarding these two issuers and the value of the securities issued follows: March 31, 2020 (in thousands) Amortized Fair Issuer Cost Value GCO Education Loan Funding Corp $ 27,911 $ 26,501 Towd Point Mortgage Trust 33,360 31,996 Securities with unrealized losses with no corresponding allowance for credit losses at March 31, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (in thousands except for number of securities): Less than 12 months 12 months or more March 31, 2020 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 $ 147 $ 7,723 4 $ 147 $ 7,723 States and political subdivisions 4 588 25,038 2 1,099 5,904 6 1,687 30,942 Collateralized mortgage obligations 12 3,339 35,811 2 71 1,051 14 3,410 36,862 Asset-backed securities 9 2,530 36,074 2 1,958 29,244 11 4,488 65,318 Collateralized loan obligations 3 849 16,140 2 985 11,187 5 1,834 27,327 Total securities available-for-sale 28 $ 7,306 $ 113,063 12 $ 4,260 $ 55,109 40 $ 11,566 $ 168,172 Less than 12 months 12 months or more December 31, 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 Upon the adoption of ASU 2016-13 as of January 1, 2020, and again as of March 31, 2020, we performed an analysis to determine if any of the unrealized losses on securities available-for-sale were comprised of credit losses as compared to unrealized losses due to market interest rate adjustments. The Company’s assessment included a review of the severity and duration of the unrealized loss; the financial condition and near-term prospects of the issuer, including external credit ratings and recent downgrades; and the Company’s ability and intent to hold the security for a period of time sufficient for a recovery in value. The Company also considered the extent to which the securities are issued by the federal government or its agencies, and any guarantee of issued amounts by those agencies. No credit losses were determined to be present as of the date of CECL adoption or as of the quarter ended March 31, 2020, as there was no credit quality deterioration noted. Therefore, no provision for credit losses on securities was recognized for the first quarter end. The following table presents net realized gains (losses) on securities available-for-sale for the three months ended March 31, 2020 and 2019. Three Months Ended March 31, Securities available-for-sale 2020 2019 Proceeds from sales of securities $ 18,126 $ 81,524 Gross realized gains on securities 17 605 Gross realized losses on securities (41) (578) Net realized (losses) gains $ (24) $ 27 Income tax benefit (expense) on net realized (losses) gains $ 7 $ (8) Effective tax rate applied % % Securities valued at $320.3 million as of March 31, 2020, a decrease from $320.8 million at year-end 2019, were pledged to secure deposits and borrowings, and for other purposes.

Loans and Allowance for Credit

Loans and Allowance for Credit Losses on Loans	3 Months Ended
	Mar. 31, 2020
Loans and Allowance for Credit Losses on Loans
Loans and Allowance for Credit Losses on Loans	Note 4 – Loans and Allowance for Credit Losses on Loans Major segments of loans were as follows: March 31, 2020 December 31, 2019 Commercial $ 364,626 $ 332,842 Leases 126,237 119,751 Commercial real estate - Investor 503,905 520,095 Commercial real estate - Owner occupied 349,595 345,504 Construction 78,159 69,617 Residential real estate - Investor 69,429 71,105 Residential real estate - Owner occupied 129,982 136,023 Multifamily 195,297 189,773 HELOC 93,165 91,605 HELOC - Purchased 30,880 31,852 Other 1 15,929 12,258 Total loans, excluding deferred loan costs and PCI loans 1,957,204 1,920,425 Net deferred loan costs - 1,786 Total loans, excluding PCI loans 1,957,204 1,922,211 PCI loans - 8,601 Total loans, including deferred loan costs and PCI loans $ 1,957,204 $ 1,930,812 Allowance for credit losses on loans (30,045) (19,789) Net loans 2 $ 1,927,159 $ 1,911,023 1 The “Other” segment for 2020 includes consumer and overdrafts in this table and in subsequent tables within this footnote 4 - Loans and Allowance for Credit Losses on Loans. 2 Excludes accrued interest receivable of $6.4 million and $6.5 million at March 31, 2020 and December 31, 2019, respectively, that is recorded in other assets on the consolidated balance sheet. In connection with the Company’s adoption of ASU 2016-13 as of January 1, 2020, the PCI loans and deferred fees and costs are included in their respective segments. PCI loans meeting nonperforming criteria were historically excluded from our nonperforming disclosures as long as their cash flows and the timing of such cash flows continue to be estimable and probable of collection. As a result of CECL implementation on January 1, 2020, PCI loans became PCD loans. PCD loans that meet the definition of nonperforming are now included in nonperforming disclosures. It is the policy of the Company to review each prospective credit prior to making a loan in order to determine if an adequate level of security or collateral has been obtained. The type of collateral, when required, will vary from liquid assets to real estate. The Company’s access to collateral, in the event of borrower default, is assured through adherence to lending laws, the Company’s lending standards and credit monitoring procedures. With selected exceptions, the Bank makes loans solely within its market area. 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 74.1% and 75.4% of the portfolio at March 31, 2020, and December 31, 2019, respectively. The following table presents the collateral dependent loans and the related ACL allocated by segment of loans as of March 31, 2020: Accounts ACL March 31, 2020 Real Estate Receivable Other Total Allocation Commercial $ - $ 2,416 $ 3 $ 2,419 $ 89 Leases - - 264 264 61 Commercial real estate - Investor 4,430 - - 4,430 203 Commercial real estate - Owner occupied 8,459 - - 8,459 204 Construction 2,245 - - 2,245 852 Residential real estate - Investor 859 - - 859 - Residential real estate - Owner occupied 3,739 - - 3,739 137 Multifamily 1,497 - - 1,497 318 HELOC 1,004 - - 1,004 - HELOC - Purchased 114 - - 114 - Other - - 9 9 3 Total $ 22,347 $ 2,416 $ 276 $ 25,039 $ 1,867 The following table presents the activity in the allowance for credit losses (“ACL”) for the three months ended March 31, 2020. The Company’s estimate of the ACL reflects losses over the expected remaining contractual life of the loans. Impact of Provision Beginning Adopting for Credit Ending Allowance for credit losses Balance ASC 326 Losses Charge-offs Recoveries Balance Three months ended March 31, 2020 Commercial $ 3,015 $ (292) $ 539 $ 97 $ 12 $ 3,177 Leases 1,262 501 127 - - 1,890 Commercial real estate - Investor 6,218 (741) 536 13 21 6,021 Commercial real estate - Owner occupied 3,678 (848) 329 1,109 1 2,051 Construction 513 1,334 2,184 - - 4,031 Residential real estate - Investor 601 740 534 - 21 1,896 Residential real estate - Owner occupied 1,257 1,320 769 1 23 3,368 Multifamily 1,444 1,732 674 - - 3,850 HELOC 1,161 1,526 (485) 83 141 2,260 HELOC - Purchased - - 850 - - 850 Other 640 607 (558) 98 60 651 $ 19,789 $ 5,879 $ 5,499 $ 1,401 $ 279 $ 30,045 The following table presents activity in the allowance for loan and lease losses for the three months ended at March 31, 2019, as determined in accordance with ASC 310 prior to the adoption of ASU 2016-13: Provision Beginning for Loan Ending Allowance for loan and lease losses: Balance Losses Charge-offs Recoveries Balance Three months ended March 31, 2019 Commercial $ 2,832 $ 202 $ 12 $ 30 $ 3,052 Leases 734 71 - - 805 Commercial real estate - Investor 5,492 207 144 20 5,575 Commercial real estate - Owner occupied 3,835 (603) 87 3 3,148 Construction 969 (24) - (1) 944 Residential real estate - Investor 629 (3) 6 16 636 Residential real estate - Owner occupied 1,302 4 12 26 1,320 Multifamily 1,143 2 - 8 1,153 HELOC 1,449 (170) - 46 1,325 HELOC - Purchased - - - - - Other 1 621 764 84 57 1,358 $ 19,006 $ 450 $ 345 $ 205 $ 19,316 1 The “Other” class includes consumer, overdrafts and net deferred costs. Aged analysis of past due loans by class of loans was as follows: 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and March 31, 2020 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 1,032 $ 46 $ 2,279 $ 3,357 $ 361,269 $ 364,626 $ - Leases 613 63 123 799 125,438 126,237 - Commercial real estate - Investor 2,235 - 1,422 3,657 500,248 503,905 59 Commercial real estate - Owner occupied 5,062 2,080 4,060 11,202 338,393 349,595 - Construction 675 - 555 1,230 76,929 78,159 555 Residential real estate - Investor 291 100 696 1,087 68,342 69,429 - Residential real estate - Owner occupied 4,183 167 2,139 6,489 123,493 129,982 736 Multifamily 1,815 561 69 2,445 192,852 195,297 - HELOC 1,459 - 329 1,788 91,377 93,165 56 HELOC - Purchased 49 - 65 114 30,766 30,880 - Other 537 3 8 548 15,381 15,929 - Total $ 17,951 $ 3,020 $ 11,745 $ 32,716 $ 1,924,488 $ 1,957,204 $ 1,406 Recorded Investment 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and December 31, 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 Commercial real estate - Investor 626 95 343 1,064 517,336 1,695 520,095 348 Commercial real estate - Owner occupied 2,469 1,026 - 3,495 336,829 5,180 345,504 - Construction 26 - - 26 69,498 93 69,617 - Residential real estate - Investor 141 125 - 266 70,051 788 71,105 - Residential real estate - Owner occupied 3,450 1,351 - 4,801 128,650 2,572 136,023 - Multifamily 10 1,700 - 1,710 187,995 68 189,773 - HELOC 735 50 18 803 89,438 1,364 91,605 20 HELOC - Purchased - - - - 31,672 180 31,852 - Other 1 28 - - 28 13,997 19 14,044 - Total, excluding PCI 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 1 The “Other” class includes consumer, overdrafts and net deferred costs. The table presents loans on nonaccrual for which there was no related allowance for credit losses as of March 31, 2020, and December 31, 2019: March 31, 2020 December 31, 2019 Nonaccrual Nonaccrual Nonaccrual With no ACL Nonaccrual With no ACL Commercial $ 2,418 $ 2,279 $ 144 $ - Leases 187 69 329 70 Commercial real estate - Investor 1,750 1,750 1,695 1,590 Commercial real estate - Owner occupied 7,436 7,357 5,180 2,366 Construction 2,245 50 93 93 Residential real estate - Investor 859 859 788 788 Residential real estate - Owner occupied 3,406 3,406 2,572 2,475 Multifamily 69 69 68 68 HELOC 1,004 1,004 1,364 1,154 HELOC - Purchased 114 114 180 180 Other 9 1 19 2 Total, excluding PCI loans 19,497 16,958 12,432 8,786 PCI loans, net of purchase accounting adjustments - - 2,963 2,963 Total $ 19,497 $ 16,958 $ 15,395 $ 11,749 The Company recognized $152,000 of interest on nonaccrual loans during the three months ended March 31, 2020. Credit Quality Indicators The Company categorizes loans into credit risk categories based on current financial information, overall debt service coverage, comparison to 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 Bank will sustain some loss if the deficiencies are not corrected. The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans. 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. The Company follows guidance of ASC 310-20 when determining whether a modification, extension, or renewal of a loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period financing receivables. The following table summarizes loans held for investment by year of origination and the related credit quality indicators at March 31, 2020: Revolving Loans Converted Revolving To Term 2020 2019 2018 2017 2016 Prior Loans Loans Total Commercial Pass $ 13,380 $ 48,708 $ 20,606 $ 10,684 $ 3,837 $ 4,074 $ 232,347 $ - $ 333,636 Special Mention - 11,152 - 17 394 49 8,118 - 19,730 Substandard 1 - 246 2,672 - 2,188 - 6,154 - 11,260 Total commercial 13,380 60,106 23,278 10,701 6,419 4,123 246,619 - 364,626 Leases Pass 14,148 65,670 22,923 10,133 9,848 2,892 - - 125,614 Special Mention - 359 - - - - - - 359 Substandard 1 - - - 77 187 - - - 264 Total leases 14,148 66,029 22,923 10,210 10,035 2,892 - - 126,237 Commercial real estate - Investor Pass 10,194 187,200 113,009 80,622 61,530 43,051 1,412 - 497,018 Special Mention - 153 - 583 19 59 - - 814 Substandard 1 - 4,059 146 - 275 1,593 - - 6,073 Total commercial real estate - investor 10,194 191,412 113,155 81,205 61,824 44,703 1,412 - 503,905 Commercial real estate - Owner occupied Pass 28,511 60,137 86,544 48,503 54,557 48,603 1,828 - 328,683 Special Mention - 557 560 2,805 5,325 1,161 - - 10,408 Substandard 1 1,046 3,498 1,054 2,509 1,691 706 - - 10,504 Total commercial real estate - owner occupied 29,557 64,192 88,158 53,817 61,573 50,470 1,828 - 349,595 Construction Pass 9,239 36,982 16,472 3,248 1,035 1,339 7,388 - 75,703 Special Mention 42 - - - - - - - 42 Substandard 1 - - 2,364 - - 50 - - 2,414 Total construction 9,281 36,982 18,836 3,248 1,035 1,389 7,388 - 78,159 Residential real estate - Investor Pass 3,599 22,824 12,634 10,586 3,543 13,388 1,403 - 67,977 Special Mention - - - - - - - - - Substandard 1 346 - 644 4 - 458 - - 1,452 Total residential real estate - investor 3,945 22,824 13,278 10,590 3,543 13,846 1,403 - 69,429 Residential real estate - Owner occupied Pass 1,505 27,584 16,814 26,024 11,519 39,578 2,390 - 125,414 Special Mention - - - - - - - - - Substandard 1 - 73 - 625 386 3,484 - - 4,568 Total residential real estate - owner occupied 1,505 27,657 16,814 26,649 11,905 43,062 2,390 - 129,982 Multifamily Pass 4,167 56,534 45,839 46,900 13,903 20,624 312 - 188,279 Special Mention - - 1,634 - 10 - - - 1,644 Substandard 1 - - 2,374 619 - 2,381 - - 5,374 Total multifamily 4,167 56,534 49,847 47,519 13,913 23,005 312 - 195,297 HELOC Pass 957 3,541 2,448 2,916 1,176 1,500 78,986 - 91,524 Special Mention - - - - - - 13 - 13 Substandard 1 29 9 50 67 29 555 889 - 1,628 Total HELOC 986 3,550 2,498 2,983 1,205 2,055 79,888 - 93,165 HELOC - Purchased Pass - - - - - 30,766 - - 30,766 Special Mention - - - - - - - - - Substandard 1 - 65 49 - - - - - 114 Total HELOC - purchased - 65 49 - - 30,766 - - 30,880 Other Pass 258 3,442 1,334 551 737 423 8,835 - 15,580 Special Mention - - - - - - - - - Substandard 1 - - 340 8 1 - - - 349 Total other 258 3,442 1,674 559 738 423 8,835 - 15,929 Total loans Pass 85,958 512,622 338,623 240,167 161,685 206,238 334,901 - 1,880,194 Special Mention 42 12,221 2,194 3,405 5,748 1,269 8,131 - 33,010 Substandard 1 1,421 7,950 9,693 3,909 4,757 9,227 7,043 - 44,000 Total loans $ 87,421 $ 532,793 $ 350,510 $ 247,481 $ 172,190 $ 216,734 $ 350,075 $ - $ 1,957,204 1 The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans. Credit quality indicators by loan segment at December 31, 2019 were as follows: December 31, 2019 Special Pass Mention Substandard 2 Doubtful Total Commercial $ 307,948 $ 13,206 $ 11,688 $ - $ 332,842 Leases 119,045 377 329 - 119,751 Commercial real estate - Investor 510,640 4,529 4,926 520,095 Commercial real estate - Owner occupied 330,891 6,657 7,956 - 345,504 Construction 69,355 - 262 - 69,617 Residential real estate - Investor 69,715 - 1,390 - 71,105 Residential real estate - Owner occupied 132,258 134 3,631 - 136,023 Multifamily 187,560 1,710 503 - 189,773 HELOC 89,804 12 1,789 - 91,605 HELOC - Purchased 31,672 - 180 31,852 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 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 $585,000 and $831,000 in residential real estate loans in the process of foreclosure as of March 31, 2020, and December 31, 2019, respectively. 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 allowance for loan and lease losses for TDRs is determined by calculating the present value of the TDR cash flows by discounting the original payment less an assumption for probability of default at the original note’s issue rate, and adding this amount to the present value of collateral less selling costs. 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 allowance for loan and lease losses 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. The allowance for loan and lease losses also includes an allowance based on a loss migration analysis for each loan category on loans and leases that are not individually evaluated for specific impairment. All loans charged-off, including TDRs charged-off, are factored into this calculation by portfolio segment. TDRs that were modified during the period are as follows: There was no TDR activity for the period ended March 31, 2020. TDR Modifications Three Months Ended March 31, 2019 # of Pre-modification Post-modification contracts recorded investment recorded investment Troubled debt restructurings Commercial real estate - owner occupied Other 1 1 $ 58 $ 58 Residential real estate - owner occupied HAMP 2 1 105 9 HELOC HAMP 2 1 39 34 Other 1 1 39 38 Total 4 $ 241 $ 139 1 Other: Change of terms from bankruptcy court. 2 HAMP: Home Affordable Modification Program. 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 was no TDR default activity for the periods ended March 31, 2020, and March 31, 2019, for loans that were restructured within the 12 month period prior to default.

Other Real Estate Owned

Other Real Estate Owned	3 Months Ended
	Mar. 31, 2020
Other Real Estate Owned
Other Real Estate Owned	Note 5 – 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: Three Months Ended March 31, Other real estate owned 2020 2019 Balance at beginning of period $ 5,004 $ 7,175 Property additions, net of acquisition adjustments 491 - Property improvements - - Less: Proceeds from property disposals, net of participation purchase and of gains/losses 288 801 Period valuation adjustments 158 - Other adjustments - 9 Balance at end of period $ 5,049 $ 6,365 Activity in the valuation allowance was as follows: Three Months Ended March 31, 2020 2019 Balance at beginning of period $ 6,712 $ 8,027 Provision for unrealized losses 158 - Reductions taken on sales (466) (152) Balance at end of period $ 6,404 $ 7,875 Expenses related to OREO, net of lease revenue includes: Three Months Ended March 31, 2020 2019 Gain on sales, net $ (23) $ (73) Provision for unrealized losses 158 - Operating expenses 102 128 Less: Lease revenue - 5 Net OREO expense $ 237 $ 50

Deposits

Deposits	3 Months Ended
	Mar. 31, 2020
Deposits
Deposits	Note 6 – Deposits Major classifications of deposits were as follows: March 31, 2020 December 31, 2019 Noninterest bearing demand $ 702,598 $ 669,795 Savings 338,134 307,015 NOW accounts 428,419 425,792 Money market accounts 277,018 282,478 Certificates of deposit of less than $100,000 231,704 227,578 Certificates of deposit of $100,000 through $250,000 150,185 151,279 Certificates of deposit of more than $250,000 67,584 62,812 Total deposits $ 2,195,642 $ 2,126,749

Borrowings

Borrowings	3 Months Ended
	Mar. 31, 2020
Borrowings
Borrowings	Note 7 – Borrowings The following table is a summary of borrowings as of March 31, 2020, and December 31, 2019. Junior subordinated debentures are discussed in more detail in Note 8: March 31, 2020 December 31, 2019 Securities sold under repurchase agreements $ 51,236 $ 48,693 Other short-term borrowings 1 6,375 48,500 Junior subordinated debentures 25,773 57,734 Senior notes 44,297 44,270 Notes payable and other borrowings 26,609 6,673 Total borrowings $ 154,290 $ 205,870 1 Includes short-term FHLBC advances for both periods presented. The Company enters into deposit sweep transactions where the transaction amounts are secured by pledged securities. These transactions consistently mature overnight 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 and collateralized mortgage-backed securities and had a carrying amount of $51.2 million at March 31, 2020, and $48.7 million at December 31, 2019. The fair value of the pledged collateral was $71.2 million at March 31, 2020, and $70.7 million at December 31, 2019. At March 31, 2020, there were no customers with secured balances exceeding 10% of stockholders’ equity. The Company’s borrowings at the FHLBC require the Bank to be a member and invest in the stock of the FHLBC. Total borrowings are generally limited to the lower of 35% of total assets or 60% of the book value of certain mortgage loans. As of March 31, 2020, the Bank had $6.4 million in short-term advances outstanding under the FHLBC compared to $48.5 million outstanding as of December 31, 2019; the remaining $6.4 million was issued at rates ranging from 2.03% to 2.23%. The Bank also assumed $23.4 million of long-term FHLBC advances with the ABC Bank acquisition in 2018. At March 31, 2020, one advance remains in long-term status, with a total outstanding balance of $6.6 million, at a 2.83% interest rate, and is scheduled to mature on February 2, 2026. FHLBC stock held at March 31, 2020 was valued at $3.7 million, and any potential FHLBC advances were collateralized by securities with a fair value of $51.0 million and loans with a principal balance of $568.3 million, which carried a FHLBC-calculated combined collateral value of $481.6 million. The Company had excess collateral of $344.3 million available to secure borrowings at March 31, 2020. The Company also has $44.3 million of senior notes outstanding, net of deferred issuance costs, as of March 31, 2020 and December 31, 2019. The senior notes were issued in December 2016 with a ten year maturity, and terms include interest payable semiannually at 5.75% for five years. Beginning December 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 March 31, 2020, and December 31, 2019, unamortized debt issuance costs related to the senior notes were $703,000 and $730,000, respectively, and are included as a reduction of the balance of the senior notes on the Consolidated Balance Sheet. These deferred issuance costs will be amortized to interest expense over the ten year term of the notes and are included in the Consolidated Statements of Income. On February 24, 2020, the Company originated a $20.0 million term note with a correspondent bank in anticipation of the redemption of the Company’s 7.80% cumulative trust preferred securities issued by Old Second Capital Trust I and related junior subordinated debentures. See the discussion in Note 8 – Junior Subordinated Debentures . The term note was issued for a three year term at one-month Libor plus 175 basis points, requires principal and interest payments quarterly, and the balance of this note is included within Notes Payable and Other Borrowings on the Consolidated Balance Sheet. The Company also has an undrawn line of credit of $20.0 million with a correspondent bank to be used for short-term funding needs; advances under this line can be outstanding up to 360 days from the date of issuance. This line of credit has not been utilized since early 2019.

Junior Subordinated Debentures

Junior Subordinated Debentures	3 Months Ended
	Mar. 31, 2020
Junior Subordinated Debentures.
Junior Subordinated Debentures	Note 8 – Junior Subordinated Debentures On March 2, 2020, the Company redeemed 7.80% cumulative trust preferred securities issued by Old Second Capital Trust I (“OSBCP”) and related debentures, which totaled $32.6 million. These debentures were originally issued in 2003 for a term of 30 years at 7.80%, and subject to regulatory approval, were able to be called in whole or in part by the Company after June 30, 2008. The Company received regulatory approval to redeem the debentures in early 2020, and notified OSBCP stockholders of the redemption in late January 2020. Cash disbursed for the redemption, including accrued interest on the debentures, totaled $33.0 million, or $10.13 per OSBCP share. The OSBCP redemption was funded by cash on hand and the $20 million term note discussed in Note 7 – Borrowings . Upon redemption of the junior subordinated debentures related to OSBCP in March 2020, the Company recognized the remaining unamortized debt issuance costs of $635,000. The Company issued $25.0 million of cumulative trust preferred securities through a private placement completed by another 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 were fixed at 6.77% through June 15, 2017, and float at 150 basis points over three-month LIBOR thereafter. Upon conversion to a floating rate, a cash flow hedge was initiated which resulted in the total interest rate paid on the debt of 4.40% for the quarter ended March 31, 2020, compared to the rate paid for the quarter ended March 31, 2019, of 4.39%. The Company issued a new $25.8 million subordinated debenture to 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. The junior subordinated debentures issued by the Company are disclosed on the Consolidated Balance Sheet, and the related interest expense for each issuance is included in the Consolidated Statements of Income. As of March 31, 2020, and December 31, 2019, the remaining unamortized debt issuance costs related to the junior subordinated debentures were $1,000 and $644,000 respectively, and are included as a reduction to the balance of the junior subordinated debentures on the Consolidated Balance Sheet. The remaining deferred issuance costs on the junior subordinated debentures related to the issuance of Old Second Capital Trust II will be amortized to interest expense over the remainder of the 30-year term of the notes and are included in the Consolidated Statements of Income.

Equity Compensation Plans

Equity Compensation Plans	3 Months Ended
	Mar. 31, 2020
Equity Compensation Plans
Equity Compensation Plans	Note 9 – Equity Compensation Plans Stock-based awards are outstanding under 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 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 2019 Plan, no further awards were to be granted under the 2014 Plan or any other prior Company equity compensation 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 March 31, 2020, 341,985 shares remained available for issuance under the 2019 Plan. 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. 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. During the first quarter of 2020, there were no stock options granted or exercised, and as of March 31, 2020, there were no stock options outstanding. 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. There were 137,944 restricted stock units issued under the 2019 Plan during the three months ended March 31, 2020. No restricted stock units were issued under the 2014 Plan during the three months ended March 31, 2019. 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. Total compensation cost that has been recorded for the Plans was $735,000 and $578,000 in the first three months of 2020 and 2019, respectively. A summary of changes in the Company’s unvested restricted awards for the three months ended March 31, 2020, is as follows: March 31, 2020 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Unvested at January 1 555,283 $ 12.85 Granted 137,944 12.26 Vested (119,452) 11.00 Forfeited - - Unvested at March 31 573,775 $ 13.09 Total unrecognized compensation cost of restricted awards was $4.0 million as of March 31, 2020, which is expected to be recognized over a weighted-average period of 2.1 years.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2020
Earnings Per Share
Earnings Per Share	Note 10 – Earnings Per Share The earnings per share, both basic and diluted, are included below as of March 31: Three Months Ended March 31, 2020 2019 Basic earnings per share: Weighted-average common shares outstanding 29,929,763 29,845,653 Net income $ 275 $ 8,468 Basic earnings per share $ 0.01 $ 0.28 Diluted earnings per share: Weighted-average common shares outstanding 29,929,763 29,845,653 Dilutive effect of unvested restricted awards 1 560,842 497,978 Diluted average common shares outstanding 30,490,605 30,343,631 Net Income $ 275 $ 8,468 Diluted earnings per share $ 0.01 $ 0.28 1 Includes the common stock equivalents for restricted share rights that are dilutive.

Regulatory & Capital Matters

Regulatory & Capital Matters	3 Months Ended
	Mar. 31, 2020
Regulatory & Capital Matters
Regulatory & Capital Matters	Note 11 – 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 risk-based capital regulatory guidelines, the Bank’s Board of Directors has established an internal guideline requiring 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%). At March 31, 2020, the Bank exceeded those thresholds. At March 31, 2020, the Bank’s Tier 1 capital leverage ratio was 11.36%, a decrease of 114 basis points from December 31, 2019, but is well above the 8.00% objective. The Bank’s total capital ratio was 14.07%, a decrease of 116 basis points from December 31, 2019, but also well above the objective of 12.00%. The reduction in the ratios is primarily due to a $30.0 million dividend the Bank paid the Company in March 2020. Bank holding companies are generally 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 are shown in the accompanying table, as are the capital ratios of the Company and the Bank, as of March 31, 2020, and December 31, 2019. 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. The Basel III Rules are applicable to all banking organizations that are subject to minimum capital requirements, including federal and state banks and savings and loan associations, as well as to bank and savings and loan holding companies, other than “small bank holding companies” generally holding companies with consolidated assets of less than $3 billion. The Company is currently considered a “small bank holding company.” A detailed discussion of the Basel III Rules is included in Part I, Item 1 of the Company’s Form 10-K for the year ended December 31, 2019, under the heading “Supervision and Regulation.” At March 31, 2020, and December 31, 2019, the Company, on a consolidated basis, exceeded the minimum thresholds to be considered “well capitalized” under current regulatory defined capital ratios. Capital levels and industry defined regulatory minimum required levels are 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 March 31, 2020 Common equity tier 1 capital to risk weighted assets Consolidated $ 251,168 10.85 % $ 162,044 7.000 % N/A N/A Old Second Bank 296,496 12.89 161,014 7.000 $ 149,513 6.50 % Total capital to risk weighted assets Consolidated 303,182 13.09 243,194 10.500 N/A N/A Old Second Bank 323,510 14.07 241,425 10.500 229,929 10.00 Tier 1 capital to risk weighted assets Consolidated 276,168 11.93 196,767 8.500 N/A N/A Old Second Bank 296,496 12.89 195,517 8.500 184,016 8.00 Tier 1 capital to average assets Consolidated 276,168 10.57 104,510 4.00 N/A N/A Old Second Bank 296,496 11.36 104,400 4.00 130,500 5.00 December 31, 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 1 Amounts are shown inclusive of a capital conservation buffer of 2.50%. 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.” As part of its response to the impact of the COVID-19 pandemic, in the first quarter of 2020, U.S. federal regulatory authorities issued an interim final rule that provides banking organizations that adopt CECL during the 2020 calendar year with the option to delay for two years the estimated impact of CECL on regulatory capital relative to regulatory capital determined under the prior incurred loss methodology, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided during the initial two-year delay (i.e., a five-year transition in total). In connection with our adoption of CECL on January 1, 2020, we have elected to utilize the five-year CECL transition. The cumulative amount that is not recognized in regulatory capital, in addition to the $3.8 million Day 1 impact of CECL adoption, will be phased in at 25% per year beginning January 1, 2022. As of March 31, 2020, the capital measures of the Company exclude $5.2 million, which is the Day 1 impact to retained earnings and 25% of the $8.0 million increase in the allowance for credit losses in the first quarter of 2020, excluding PCD loans. 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 came into effect January 1, 2015, and were fully phased in as of January 1, 2019, the Bank must keep a capital conservation buffer of 2.50% above the new regulatory minimum capital requirements, which must consist entirely of Common Equity Tier 1 capital in order to avoid additional limitations on capital distributions and certain other payments. Stock Repurchase Program In September 2019, our board of directors authorized the repurchase of up to 1,494,826 shares of our common stock (the “Repurchase Program”). Repurchases by us under the Repurchase Program may be made from time to time through open market purchases, trading plans established in accordance with SEC rules, privately negotiated transactions, or by other means. During the first quarter of 2020, we repurchased 312,723 shares of our common stock at a weighted average price of $7.06 per share pursuant to the Repurchase Program.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2020
Fair Value Measurements
Fair Value Measurements	Note 12 – 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. The majority of securities available-for-sale 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. · Auction rate securities are priced using market spreads, cash flows, prepayment speeds, and loss analytics. Therefore, the valuations of auction rate asset-backed securities are considered Level 2 valuations. · Asset-backed collateralized loan obligations were priced using data from a pricing matrix supported by our bond accounting service provider and are therefore considered 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 allowance for credit losses 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 fair value, less costs to sell. Fair values are based on third party appraisals of the property, resulting in a Level 3 classification, or an executed pending sales contract. 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 March 31, 2020, and December 31, 2019, respectively, measured by the Company at fair value on a recurring basis: March 31, 2020 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 4,152 $ - $ - $ 4,152 U.S. government agencies - 7,723 - 7,723 U.S. government agencies mortgage-backed - 17,255 - 17,255 States and political subdivisions - 243,938 11,157 255,095 Collateralized mortgage obligations - 53,403 - 53,403 Asset-backed securities - 77,727 - 77,727 Collateralized loan obligations - 34,339 - 34,339 Loans held-for-sale - 10,049 - 10,049 Mortgage servicing rights - - 4,108 4,108 Interest rate swap agreements - 11,115 - 11,115 Mortgage banking derivatives - 732 - 732 Total $ 4,152 $ 456,281 $ 15,265 $ 475,698 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 16,912 $ - $ 16,912 Total $ - $ 16,912 $ - $ 16,912 December 31, 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 The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are as follows: Three Months Ended March 31, 2020 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2020 $ 5,419 $ 5,935 Total gains or losses Included in earnings (6) (1,859) Included in other comprehensive income (325) - Purchases, issuances, sales, and settlements Purchases 6,100 - Issuances - 307 Settlements (31) (275) Ending balance March 31, 2020 $ 11,157 $ 4,108 Three Months Ended March 31, 2019 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2019 $ 8,165 $ 7,357 Total gains or losses Included in earnings (8) (721) Included in other comprehensive income 171 - Purchases, issuances, sales, and settlements Purchases 11,325 - Issuances - 177 Settlements (97) (98) Ending balance March 31, 2019 $ 19,556 $ 6,715 The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of March 31, 2020: Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 4,108 Discounted Cash Flow Discount Rate 10.0 - 17.0% 10.1 % Prepayment Speed 7.0 - 71.8% 20.7 % 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 % In addition to the above, Level 3 fair value measurement included $11.2 million for state and political subdivisions representing various local municipality securities at March 31, 2020. This was classified as securities available-for-sale, and was valued using a discount based on market spreads of similar assets, but the liquidity premium was an unobservable input. The state and political subdivisions securities balance in Level 3 fair value at March 31, 2019, was $19.6 million. This was classified as securities available-for-sale, and were valued using a discount based on market spreads of similar assets, but the liquidity premium was 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 March 31, 2020, and December 31, 2019, respectively, the following tables provide the level of valuation assumptions used to determine each valuation and the carrying value of the related assets: March 31, 2020 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 23,436 $ 23,436 Other real estate owned, net 2 - - 5,049 5,049 Total $ - $ - $ 28,485 $ 28,485 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 $25.3 million and a valuation allowance of $1.9 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $732,000 for the three months ended March 31, 2020. 2 OREO is measured at 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 $12.3 million, net of a valuation allowance of $6.4 million and a participation of $937,000 at March 31, 2020. December 31, 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 resulting in an increase of specific allocations within the allowance for credit losses on loans of $783,000 for the year December 31, 2019. 2 OREO is measured at 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 a participation of $937,000, at December 31, 2019. 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 ranges of unobservable inputs for these valuation assumptions are not meaningful.

Fair Values of Financial Instru

Fair Values of Financial Instruments	3 Months Ended
	Mar. 31, 2020
Fair Values of Financial Instruments
Fair Values of Financial Instruments	Note 13 – Fair Values 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 March 31, 2020 and December 31, 2019, 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 carrying amount and estimated fair values of financial instruments were as follows: March 31, 2020 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 27,627 $ 27,627 $ 27,627 $ - $ - Interest bearing deposits with financial institutions 45,511 45,511 45,511 - - Securities available-for-sale 449,694 449,694 4,152 434,385 11,157 FHLBC and FRBC stock 9,917 9,917 - 9,917 - Loans held-for-sale 10,049 10,049 - 10,049 - Net loans 1,927,159 1,947,974 - - 1,947,974 Interest rate swap agreements 11,115 11,115 - 11,115 Interest receivable on securities and loans 9,392 9,392 - 9,392 - Financial liabilities: Noninterest bearing deposits $ 702,598 $ 702,598 $ 702,598 $ - $ - Interest bearing deposits 1,493,044 1,496,968 - 1,496,968 - Securities sold under repurchase agreements 51,236 51,236 - 51,236 - Other short-term borrowings 6,375 6,375 - 6,375 - Junior subordinated debentures 25,773 9,257 - 9,257 - Senior notes 44,297 42,689 42,689 - - Note payable and other borrowings 26,609 27,003 - 27,003 - Interest rate swap agreements 16,795 16,795 - 16,795 - Interest payable on deposits and borrowings 1,728 1,728 4 1,724 - 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 Interest rate swap agreements 2,771 2,771 - 2,771 - Interest receivable on securities and loans 9,697 9,697 - 9,697 - Financial liabilities: Noninterest bearing deposits $ 669,795 $ 669,975 $ 669,975 $ - $ - 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 5,921 5,921 - 5,921 - Interest payable on deposits and borrowings 1,079 1,079 - 1,079 -

Derivatives, Hedging Activities

Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk	3 Months Ended
	Mar. 31, 2020
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk	Note 14 – Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk 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. 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/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 expense as interest payments are received on the Company’s variable-rate borrowings. During the next twelve months, the Company estimates that an additional $625,000 will be reclassified as an increase to interest income and an additional $600,000 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 with financial counterparties 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, 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. The Company expects 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 a net $2.0 million of cash collateral held by one correspondent financial institution to support interest rate swap activity at March 31, 2020; $14.6 million of investment securities were required to be pledged to one correspondent 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. At March 31, 2020, the notional amount of non-hedging interest rate swaps was $193.4 million with a weighted average maturity of 6.0 years. 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. 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 Sheet as of March 31, 2020, and December 31, 2019. Fair Value of Derivative Instruments March 31, 2020 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 2,838 Other Liabilities 8,518 Total derivatives designated as hedging instruments 2,838 8,518 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 193,418 Other Assets 8,277 Other Liabilities 8,277 Interest rate lock commitments and forward contracts 80,500 Other Assets 732 Other Liabilities - Other contracts 28,052 Other Assets - Other Liabilities 118 Total derivatives not designated as hedging instruments 9,009 8,395 December 31, 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 2,771 Other Liabilities 2,771 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 3,021 2,824 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 $4.1 million as of March 31, 2020, and $800,000 as of March 31, 2019. The amount of the loss reclassified from AOCI to interest income on the income statement totaled $86,000 and $5,000 for the three months ended March 31, 2020, and March 31, 2019, 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 include the definition of certain events that may lead to the declaration of default and/or the early termination of the derivative transaction(s): · If the Company either defaults or is capable of being declared in default on any of its indebtedness (exclusive of deposit obligations), then the Company could also be declared in default on its derivative obligations. · If a merger occurs that materially changes the Company's creditworthiness in an adverse manner. · 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 FDIC. The Bank also issues letters of credit, which are conditional commitments that guarantee the performance of a customer to a third party. The credit risk involved and collateral obtained in issuing letters of credit are essentially the same as that involved in extending loan commitments to our customers. In addition to customer related commitments, the Company is responsible for letters of credit commitments that relate to properties held in OREO. The following table represents the Company’s contractual commitments due to letters of credit as of March 31, 2020, and December 31, 2019. The following table is a summary of letter of credit commitments: March 31, 2020 December 31, 2019 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ 329 $ 9,381 $ 9,710 $ 339 $ 9,612 $ 9,951 Commercial standby - - - - - - Performance standby 571 6,070 6,641 571 6,212 6,783 900 15,451 16,351 910 15,824 16,734 Non-borrower: Performance standby - 67 67 - 67 67 Total letters of credit $ 900 $ 15,518 $ 16,418 $ 910 $ 15,891 $ 16,801 Unused loan commitments $ 112,537 $ 326,945 $ 439,482 $ 111,348 $ 320,120 $ 431,468

Summary of Significant Accounti

Summary of Significant Accounting Policies (Policies)-10K	3 Months Ended
	Mar. 31, 2020
Basis of Presentation and Changes in Significant Accounting Policies
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments – Credit 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 reflects 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 also requires 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 must 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 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 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 economic environment at that time, we recorded an overall increase in our ACL for loans and leases of $5.9 million and an ACL for unfunded commitments was established of $1.7 million. Approximately $2.5 million of the increase to the ACL on loans resulted from the transfer of the non-accretable purchase accounting adjustments on purchased credit impaired loans. There was no impact from adoption of CECL on securities available-for sale. As a result of the adoption of this new standard on January 1, 2020, we recorded a reduction to retained earnings of approximately $3.7 million, which was net of the $1.4 million deferred tax asset impact stemming from adoption. The Company finalized internal control processes and disclosure documentation related to adoption of this standard during the first quarter of 2020. As of March 31, 2020, a provision for credit losses was recorded based on the current uncertainty experienced in the macroeconomic environment, primarily due to falling interest rates and the impact of COVID-19. This additional ACL was not considered part of the ASU 2016-13 adoption, as these changes in the assessment of the ACL occurred after the January 1, 2020, adoption. We recorded a provision for credit losses of $8.0 million during the first quarter of 2020, comprised of $5.5 million of allowance for credit losses related to loans, and $2.5 million of ACL related to unfunded commitments. We will continue to assess and evaluate the estimated future credit loss impact of current market conditions in subsequent reporting periods, which will be highly dependent on credit quality, macroeconomic forecasts and conditions, the local and national response to the COVID-19 pandemic, as well as the composition of our loans and available-for-sale securities portfolio. Change in Significant Accounting Policies Significant accounting policies are presented in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. These policies, along with the disclosures presented in the other financial statement notes and in this discussion, provide information on how significant assets and liabilities are valued in the consolidated financial statements and how those values are determined. In addition to the significant accounting policies presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, on January 1, 2020, as discussed above, the Company adopted ASU 2016-13, referred to as Current Expected Credit Losses, or CECL, an expected loss methodology which replaces the incurred loss methodology for determining the Company’s provision for loan losses and allowance for loan and lease losses. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with ASU 2016-02 “Leases (Topic 842)” (“ASU 2016-02”). In addition, ASU 2016-13 made changes to the accounting for available-for-sale debt securities. One such change is to require credit-related impairments to be recognized as an allowance for credit losses rather than as a write-down of the securities amortized cost basis when management does not intend to sell or believes that it is not more likely than not that they will be required to sell the securities prior to recovery of the securities amortized cost basis.
Allowance for Credit Losses	Allowance for Credit Losses The allowance for credit losses (“ACL”) is an estimate of the expected credit losses on the loans held for investment, unfunded loan commitments, and available-for-sale debt securities portfolios. Allowance for Credit Losses on Loans The ACL is calculated according to GAAP standards and is maintained by management at a level believed adequate to absorb estimated credit losses that are expected to occur within the existing loan portfolio through their contractual terms. The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on loans. Determination of the ACL is inherently subjective in nature 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 ACL is dependent upon a variety of factors beyond the Company’s direct control, including, but not limited to, the performance of the loan portfolio, consideration of current economic trends, changes in interest rates and property values, estimated losses on pools of homogeneous loans based on an analysis that uses historical loss experience for prior periods that are determined to have like characteristics with the current period such as pre-recessionary, recessionary, or recovery periods, 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 ACL is determined separately, the entire balance is available for the entire loan portfolio. The ACL methodology consists of measuring loans on a collective (pool) basis when similar risk characteristics exist. The Company has identified the following loan portfolios and measures the ACL using the following methods: · Commercial loans – the Company uses a migration analysis, and within this segment classifies six different risk levels to assign a loss rate based on historical losses, as well as applying a qualitative factor adjustment in addition to the loss rates applied, as discussed below. · Leases – the Company uses a remaining life methodology, also known as WARM (weighted average remaining life), as this segment is relatively new to the Company and more than four years of the Company’s own historical loss data is not available. In accordance with accounting standards, a peer group has been identified and is used to estimate losses for this portfolio. · Real estate – commercial (“CRE”) – this loan portfolio is segregated into two segments: o CRE owner occupied – the Company uses a migration analysis, and within this segment classifies six different risk levels to assign a loss rate based on historical losses, as well as applying a qualitative adjustment in addition to the loss rates applied, as discussed below. o CRE investor – the Company uses a migration analysis, and within this segment classifies six different risk levels to assign a loss rate based on historical losses, as well as applying a qualitative adjustment in addition to the loss rates applied, as discussed below. · Real estate – construction – the Company uses a static segment analysis, which relies on the Company’s historical loss rates, as well as a qualitative adjustment in addition to the loss rates applied. · Real estate-residential - this loan portfolio is segregated into two segments: o Residential owner occupied and Residential investor – the Company uses a static segment analysis, applying historical loss rates from periods with like characteristics as the current period, and also a qualitative adjustment in addition to the loss rates applied. · Multifamily – the Company uses a migration analysis, and within this segment, the Company classifies six different risk levels to assign a loss rate based on historical losses, as well as applying a qualitative adjustment in addition to the loss rates applied. · HELOCs – this portfolio is segregated into two segments, a HELOC legacy segment which uses a static pool analysis, and a HELOC purchased segment, which uses the WARM method, and applies loss rates from the institutions from which the Company purchased the HELOCs, if available. Purchased credit deteriorated loans (“PCD loans”), are purchased loans that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Company’s assessment. The Company records acquired PCD loans by adding the expected credit losses (i.e. allowance for credit losses) to the purchase price of the financial assets rather than recording through the provision for credit losses in the income statement. The expected credit loss, as of the acquisition day, of a PCD loan is added to the allowance for credit losses. The non-credit discount or premium is the difference between the unpaid principal balance and the amortized cost basis as of the acquisition date. Subsequent to the acquisition date, the change in the ACL on PCD loans is recognized through the provision for credit losses. The non-credit discount or premium is accreted or amortized, respectively, into interest income over the remaining life of the PCD loan on a level-yield basis. In accordance with the transition requirements within the standard, the Company’s purchased credit impaired loans (“PCI loans”) were treated as PCD loans. PCI loans meeting nonperforming criteria were historically excluded from our nonperforming disclosures as long as their cash flows and the timing of such cash flows continue to be estimable and probable of collection. As a result of CECL implementation on January 1, 2020, PCI loans became PCD loans. PCD loans that meet the definition of nonperforming are now included in nonperforming disclosures. The qualitative factors applied to each loan portfolio consist of the impact of other internal and external qualitative and credit market factors as assessed by management through a detailed loan review, ACL analysis and credit discussions. These internal and external qualitative and credit market factors include: · changes in lending policies and procedures, including changes in underwriting standards and collections, charge-offs and recovery practices; · changes in international, national, regionally and local conditions (specific factors which impact portfolios or discrepancies with national economic factors which are utilized within the economic forecast); · changes in the experience, depth and ability of lending management; · changes in the volume and severity of past due loans and other similar loan conditions; · changes in the nature and volume of the loan portfolio and terms of loans; · the existence and effect of any concentrations of credit and changes in the levels of such concentrations (this characteristic requires any portfolio exceeding 25% of capital to have a factor considered unless the pool is otherwise well diversified or holds a relatively low inherent risk); · effects of other external factors, such as competition, legal or regulatory factors, on the level of estimated credit losses; · changes in the quality of our loan review functions; and · changes in the value of underlying collateral for collateral dependent loans. The impact of the above listed internal and external qualitative and credit market risk factors is assessed within predetermined ranges to adjust the ACL totals calculated. In addition to the pooled analysis performed for the majority of our loan and commitment balances, we also review those loans that have collateral dependency or nonperforming status which requires a specific review of that loan, per our individually analyzed CECL calculations. Finally, we maintain a component of the ACL for those factors that cannot be quantified in the above analysis or are as yet unknown to us, due to changing economic conditions and other aspects of credit risk; which is known as the Company’s “Other Reserves.” Loans are charged off against the ACL when management believes the uncollectibility of a loan balance is confirmed, while recoveries of amounts previously charged-off are credited to the ACL. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged off. Approved releases from previously established ACL reserves authorized under our ACL methodology also reduce the ACL. Additions to the ACL are established through the provision for credit losses on loans, which is charged to expense. The Company’s ACL methodology is intended to reflect all loan portfolio risk, but management recognizes the inability to accurately depict all future credit losses in a current ACL estimate, as the impact of various factors cannot be fully known. Accrued interest receivable on loans is excluded from the amortized cost basis of financing receivables for the purpose of determining the allowance for credit losses. All calculations conform to GAAP. Allowance for Credit Losses on Unfunded Loan Commitments The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk by a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL related to off-balance sheet credit exposures, which is within other liabilities on the Company’s balance sheet, is estimated at each balance sheet date under the CECL model, and is adjusted as determined necessary through the provision for credit losses on the income statement. The estimate for ACL on unfunded loan commitments includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. Allowance for Credit Losses on Securities Available-for-Sale For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will sell, the security before recovery of its amortized cost basis. If either of the aforementioned criteria exists, the Company will record an ACL related to securities available-for-sale with an offsetting entry to the provision for credit losses on securities on the income statement. If either of these criteria does not exist, the Company will evaluate the securities individually to determine whether the decline in the fair value below the amortized cost basis (impairment) is due to credit-related factors or noncredit-related factors, such as market interest rate fluctuations. In evaluating securities available-for sale for potential impairment, the Company considers many factors, including the financial condition and near-term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; and its ability and intent to hold the security for a period of time sufficient for a recovery in value. The Company also considers the extent to which the securities are issued by the federal government or its agencies, and any guarantee of issued amounts by those agencies. The amount of the impairment related to other factors is recognized in other comprehensive income (loss). Accrued interest receivable on securities available-for-sale is excluded from the amortized cost basis of those securities for the purpose of determining the allowance for credit losses. All calculations conform to GAAP.
Subsequent Events	Subsequent Events On April 21, 2020, the Company’s Board of Directors declared a cash dividend of $0.01 per share payable on May 11, 2020, to stockholders of record as of May 1, 2020; dividends of $297,000 are scheduled to be paid to stockholders on May 11, 2020.

Securities (Tables)

Securities (Tables)	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 4,011 $ 141 $ - $ 4,152 U.S. government agencies 7,870 - (147) 7,723 U.S. government agencies mortgage-backed 16,021 1,234 - 17,255 States and political subdivisions 244,429 12,353 (1,687) 255,095 Collateralized mortgage obligations 56,104 709 (3,410) 53,403 Asset-backed securities 82,005 210 (4,488) 77,727 Collateralized loan obligations 36,104 69 (1,834) 34,339 Total securities available-for-sale $ 446,544 $ 14,716 $ (11,566) $ 449,694 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2019 Cost 1 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
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 $ 6,606 2.42 % $ 6,625 Due after one year through five years 6,287 2.11 6,509 Due after five years through ten years 16,117 2.96 16,506 Due after ten years 227,300 3.01 237,330 256,310 2.97 266,970 Mortgage-backed and collateralized mortgage obligations 72,125 3.30 70,658 Asset-backed securities 82,005 2.75 77,727 Collateralized loan obligations 36,104 3.59 34,339 Total securities available-for-sale $ 446,544 3.03 % $ 449,694
Schedule of amortized cost and fair value of securities that exceed 10% of stockholders equity	The Company has invested in securities issued from two originators that individually amount to over 10% of the Company’s stockholders equity. Information regarding these two issuers and the value of the securities issued follows: March 31, 2020 (in thousands) Amortized Fair Issuer Cost Value GCO Education Loan Funding Corp $ 27,911 $ 26,501 Towd Point Mortgage Trust 33,360 31,996
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 March 31, 2020 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 $ 147 $ 7,723 4 $ 147 $ 7,723 States and political subdivisions 4 588 25,038 2 1,099 5,904 6 1,687 30,942 Collateralized mortgage obligations 12 3,339 35,811 2 71 1,051 14 3,410 36,862 Asset-backed securities 9 2,530 36,074 2 1,958 29,244 11 4,488 65,318 Collateralized loan obligations 3 849 16,140 2 985 11,187 5 1,834 27,327 Total securities available-for-sale 28 $ 7,306 $ 113,063 12 $ 4,260 $ 55,109 40 $ 11,566 $ 168,172 Less than 12 months 12 months or more December 31, 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
Schedule of proceeds from sale and gross realized gains and losses on sale of securities	Three Months Ended March 31, Securities available-for-sale 2020 2019 Proceeds from sales of securities $ 18,126 $ 81,524 Gross realized gains on securities 17 605 Gross realized losses on securities (41) (578) Net realized (losses) gains $ (24) $ 27 Income tax benefit (expense) on net realized (losses) gains $ 7 $ (8) Effective tax rate applied % %

Loans and Allowance for Credi_2

Loans and Allowance for Credit Losses on Loans (Tables)	3 Months Ended
	Mar. 31, 2020
Loans and Allowance for Credit Losses on Loans
Schedule of major classifications of loans	March 31, 2020 December 31, 2019 Commercial $ 364,626 $ 332,842 Leases 126,237 119,751 Commercial real estate - Investor 503,905 520,095 Commercial real estate - Owner occupied 349,595 345,504 Construction 78,159 69,617 Residential real estate - Investor 69,429 71,105 Residential real estate - Owner occupied 129,982 136,023 Multifamily 195,297 189,773 HELOC 93,165 91,605 HELOC - Purchased 30,880 31,852 Other 1 15,929 12,258 Total loans, excluding deferred loan costs and PCI loans 1,957,204 1,920,425 Net deferred loan costs - 1,786 Total loans, excluding PCI loans 1,957,204 1,922,211 PCI loans - 8,601 Total loans, including deferred loan costs and PCI loans $ 1,957,204 $ 1,930,812 Allowance for credit losses on loans (30,045) (19,789) Net loans 2 $ 1,927,159 $ 1,911,023 1 The “Other” segment for 2020 includes consumer and overdrafts in this table and in subsequent tables within this footnote 4 - Loans and Allowance for Credit Losses on Loans. 2 Excludes accrued interest receivable of $6.4 million and $6.5 million at March 31, 2020 and December 31, 2019, respectively, that is recorded in other assets on the consolidated balance sheet.
Schedule of collateral dependent loans and related loan allowances.	Accounts ACL March 31, 2020 Real Estate Receivable Other Total Allocation Commercial $ - $ 2,416 $ 3 $ 2,419 $ 89 Leases - - 264 264 61 Commercial real estate - Investor 4,430 - - 4,430 203 Commercial real estate - Owner occupied 8,459 - - 8,459 204 Construction 2,245 - - 2,245 852 Residential real estate - Investor 859 - - 859 - Residential real estate - Owner occupied 3,739 - - 3,739 137 Multifamily 1,497 - - 1,497 318 HELOC 1,004 - - 1,004 - HELOC - Purchased 114 - - 114 - Other - - 9 9 3 Total $ 22,347 $ 2,416 $ 276 $ 25,039 $ 1,867
Schedule of changes in the allowance for loan losses by segment of loans based on method of impairment	The following table presents the activity in the allowance for credit losses (“ACL”) for the three months ended March 31, 2020. The Company’s estimate of the ACL reflects losses over the expected remaining contractual life of the loans. Impact of Provision Beginning Adopting for Credit Ending Allowance for credit losses Balance ASC 326 Losses Charge-offs Recoveries Balance Three months ended March 31, 2020 Commercial $ 3,015 $ (292) $ 539 $ 97 $ 12 $ 3,177 Leases 1,262 501 127 - - 1,890 Commercial real estate - Investor 6,218 (741) 536 13 21 6,021 Commercial real estate - Owner occupied 3,678 (848) 329 1,109 1 2,051 Construction 513 1,334 2,184 - - 4,031 Residential real estate - Investor 601 740 534 - 21 1,896 Residential real estate - Owner occupied 1,257 1,320 769 1 23 3,368 Multifamily 1,444 1,732 674 - - 3,850 HELOC 1,161 1,526 (485) 83 141 2,260 HELOC - Purchased - - 850 - - 850 Other 640 607 (558) 98 60 651 $ 19,789 $ 5,879 $ 5,499 $ 1,401 $ 279 $ 30,045 The following table presents activity in the allowance for loan and lease losses for the three months ended at March 31, 2019, as determined in accordance with ASC 310 prior to the adoption of ASU 2016-13: Provision Beginning for Loan Ending Allowance for loan and lease losses: Balance Losses Charge-offs Recoveries Balance Three months ended March 31, 2019 Commercial $ 2,832 $ 202 $ 12 $ 30 $ 3,052 Leases 734 71 - - 805 Commercial real estate - Investor 5,492 207 144 20 5,575 Commercial real estate - Owner occupied 3,835 (603) 87 3 3,148 Construction 969 (24) - (1) 944 Residential real estate - Investor 629 (3) 6 16 636 Residential real estate - Owner occupied 1,302 4 12 26 1,320 Multifamily 1,143 2 - 8 1,153 HELOC 1,449 (170) - 46 1,325 HELOC - Purchased - - - - - Other 1 621 764 84 57 1,358 $ 19,006 $ 450 $ 345 $ 205 $ 19,316 1 The “Other” class includes consumer, overdrafts and net deferred costs.
Schedule of aged analysis of past due loans by class of loans	90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and March 31, 2020 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 1,032 $ 46 $ 2,279 $ 3,357 $ 361,269 $ 364,626 $ - Leases 613 63 123 799 125,438 126,237 - Commercial real estate - Investor 2,235 - 1,422 3,657 500,248 503,905 59 Commercial real estate - Owner occupied 5,062 2,080 4,060 11,202 338,393 349,595 - Construction 675 - 555 1,230 76,929 78,159 555 Residential real estate - Investor 291 100 696 1,087 68,342 69,429 - Residential real estate - Owner occupied 4,183 167 2,139 6,489 123,493 129,982 736 Multifamily 1,815 561 69 2,445 192,852 195,297 - HELOC 1,459 - 329 1,788 91,377 93,165 56 HELOC - Purchased 49 - 65 114 30,766 30,880 - Other 537 3 8 548 15,381 15,929 - Total $ 17,951 $ 3,020 $ 11,745 $ 32,716 $ 1,924,488 $ 1,957,204 $ 1,406 Recorded Investment 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and December 31, 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 Commercial real estate - Investor 626 95 343 1,064 517,336 1,695 520,095 348 Commercial real estate - Owner occupied 2,469 1,026 - 3,495 336,829 5,180 345,504 - Construction 26 - - 26 69,498 93 69,617 - Residential real estate - Investor 141 125 - 266 70,051 788 71,105 - Residential real estate - Owner occupied 3,450 1,351 - 4,801 128,650 2,572 136,023 - Multifamily 10 1,700 - 1,710 187,995 68 189,773 - HELOC 735 50 18 803 89,438 1,364 91,605 20 HELOC - Purchased - - - - 31,672 180 31,852 - Other 1 28 - - 28 13,997 19 14,044 - Total, excluding PCI 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 1 The “Other” class includes consumer, overdrafts and net deferred costs.
Schedule of loans on nonaccrual for which there was no related allowance	March 31, 2020 December 31, 2019 Nonaccrual Nonaccrual Nonaccrual With no ACL Nonaccrual With no ACL Commercial $ 2,418 $ 2,279 $ 144 $ - Leases 187 69 329 70 Commercial real estate - Investor 1,750 1,750 1,695 1,590 Commercial real estate - Owner occupied 7,436 7,357 5,180 2,366 Construction 2,245 50 93 93 Residential real estate - Investor 859 859 788 788 Residential real estate - Owner occupied 3,406 3,406 2,572 2,475 Multifamily 69 69 68 68 HELOC 1,004 1,004 1,364 1,154 HELOC - Purchased 114 114 180 180 Other 9 1 19 2 Total, excluding PCI loans 19,497 16,958 12,432 8,786 PCI loans, net of purchase accounting adjustments - - 2,963 2,963 Total $ 19,497 $ 16,958 $ 15,395 $ 11,749
Schedule of credit quality indicators by class of loans	Revolving Loans Converted Revolving To Term 2020 2019 2018 2017 2016 Prior Loans Loans Total Commercial Pass $ 13,380 $ 48,708 $ 20,606 $ 10,684 $ 3,837 $ 4,074 $ 232,347 $ - $ 333,636 Special Mention - 11,152 - 17 394 49 8,118 - 19,730 Substandard 1 - 246 2,672 - 2,188 - 6,154 - 11,260 Total commercial 13,380 60,106 23,278 10,701 6,419 4,123 246,619 - 364,626 Leases Pass 14,148 65,670 22,923 10,133 9,848 2,892 - - 125,614 Special Mention - 359 - - - - - - 359 Substandard 1 - - - 77 187 - - - 264 Total leases 14,148 66,029 22,923 10,210 10,035 2,892 - - 126,237 Commercial real estate - Investor Pass 10,194 187,200 113,009 80,622 61,530 43,051 1,412 - 497,018 Special Mention - 153 - 583 19 59 - - 814 Substandard 1 - 4,059 146 - 275 1,593 - - 6,073 Total commercial real estate - investor 10,194 191,412 113,155 81,205 61,824 44,703 1,412 - 503,905 Commercial real estate - Owner occupied Pass 28,511 60,137 86,544 48,503 54,557 48,603 1,828 - 328,683 Special Mention - 557 560 2,805 5,325 1,161 - - 10,408 Substandard 1 1,046 3,498 1,054 2,509 1,691 706 - - 10,504 Total commercial real estate - owner occupied 29,557 64,192 88,158 53,817 61,573 50,470 1,828 - 349,595 Construction Pass 9,239 36,982 16,472 3,248 1,035 1,339 7,388 - 75,703 Special Mention 42 - - - - - - - 42 Substandard 1 - - 2,364 - - 50 - - 2,414 Total construction 9,281 36,982 18,836 3,248 1,035 1,389 7,388 - 78,159 Residential real estate - Investor Pass 3,599 22,824 12,634 10,586 3,543 13,388 1,403 - 67,977 Special Mention - - - - - - - - - Substandard 1 346 - 644 4 - 458 - - 1,452 Total residential real estate - investor 3,945 22,824 13,278 10,590 3,543 13,846 1,403 - 69,429 Residential real estate - Owner occupied Pass 1,505 27,584 16,814 26,024 11,519 39,578 2,390 - 125,414 Special Mention - - - - - - - - - Substandard 1 - 73 - 625 386 3,484 - - 4,568 Total residential real estate - owner occupied 1,505 27,657 16,814 26,649 11,905 43,062 2,390 - 129,982 Multifamily Pass 4,167 56,534 45,839 46,900 13,903 20,624 312 - 188,279 Special Mention - - 1,634 - 10 - - - 1,644 Substandard 1 - - 2,374 619 - 2,381 - - 5,374 Total multifamily 4,167 56,534 49,847 47,519 13,913 23,005 312 - 195,297 HELOC Pass 957 3,541 2,448 2,916 1,176 1,500 78,986 - 91,524 Special Mention - - - - - - 13 - 13 Substandard 1 29 9 50 67 29 555 889 - 1,628 Total HELOC 986 3,550 2,498 2,983 1,205 2,055 79,888 - 93,165 HELOC - Purchased Pass - - - - - 30,766 - - 30,766 Special Mention - - - - - - - - - Substandard 1 - 65 49 - - - - - 114 Total HELOC - purchased - 65 49 - - 30,766 - - 30,880 Other Pass 258 3,442 1,334 551 737 423 8,835 - 15,580 Special Mention - - - - - - - - - Substandard 1 - - 340 8 1 - - - 349 Total other 258 3,442 1,674 559 738 423 8,835 - 15,929 Total loans Pass 85,958 512,622 338,623 240,167 161,685 206,238 334,901 - 1,880,194 Special Mention 42 12,221 2,194 3,405 5,748 1,269 8,131 - 33,010 Substandard 1 1,421 7,950 9,693 3,909 4,757 9,227 7,043 - 44,000 Total loans $ 87,421 $ 532,793 $ 350,510 $ 247,481 $ 172,190 $ 216,734 $ 350,075 $ - $ 1,957,204 1 The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans. Credit quality indicators by loan segment at December 31, 2019 were as follows: December 31, 2019 Special Pass Mention Substandard 2 Doubtful Total Commercial $ 307,948 $ 13,206 $ 11,688 $ - $ 332,842 Leases 119,045 377 329 - 119,751 Commercial real estate - Investor 510,640 4,529 4,926 520,095 Commercial real estate - Owner occupied 330,891 6,657 7,956 - 345,504 Construction 69,355 - 262 - 69,617 Residential real estate - Investor 69,715 - 1,390 - 71,105 Residential real estate - Owner occupied 132,258 134 3,631 - 136,023 Multifamily 187,560 1,710 503 - 189,773 HELOC 89,804 12 1,789 - 91,605 HELOC - Purchased 31,672 - 180 31,852 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 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 TDRs modified during the period by type of modification	TDR Modifications Three Months Ended March 31, 2019 # of Pre-modification Post-modification contracts recorded investment recorded investment Troubled debt restructurings Commercial real estate - owner occupied Other 1 1 $ 58 $ 58 Residential real estate - owner occupied HAMP 2 1 105 9 HELOC HAMP 2 1 39 34 Other 1 1 39 38 Total 4 $ 241 $ 139 1 Other: Change of terms from bankruptcy court. 2 HAMP: Home Affordable Modification Program.

Other Real Estate Owned (Tables

Other Real Estate Owned (Tables)	3 Months Ended
	Mar. 31, 2020
Other Real Estate Owned
Schedule of activity in the other real estate owned (OREO) portfolio, net of valuation reserve	Three Months Ended March 31, Other real estate owned 2020 2019 Balance at beginning of period $ 5,004 $ 7,175 Property additions, net of acquisition adjustments 491 - Property improvements - - Less: Proceeds from property disposals, net of participation purchase and of gains/losses 288 801 Period valuation adjustments 158 - Other adjustments - 9 Balance at end of period $ 5,049 $ 6,365
Schedule of activity in valuation allowance	Three Months Ended March 31, 2020 2019 Balance at beginning of period $ 6,712 $ 8,027 Provision for unrealized losses 158 - Reductions taken on sales (466) (152) Balance at end of period $ 6,404 $ 7,875
Schedule of expenses related to foreclosed assets, net of lease revenue	Three Months Ended March 31, 2020 2019 Gain on sales, net $ (23) $ (73) Provision for unrealized losses 158 - Operating expenses 102 128 Less: Lease revenue - 5 Net OREO expense $ 237 $ 50

Deposits (Tables)

Deposits (Tables)	3 Months Ended
	Mar. 31, 2020
Deposits
Schedule of major classifications of deposits	March 31, 2020 December 31, 2019 Noninterest bearing demand $ 702,598 $ 669,795 Savings 338,134 307,015 NOW accounts 428,419 425,792 Money market accounts 277,018 282,478 Certificates of deposit of less than $100,000 231,704 227,578 Certificates of deposit of $100,000 through $250,000 150,185 151,279 Certificates of deposit of more than $250,000 67,584 62,812 Total deposits $ 2,195,642 $ 2,126,749

Borrowings (Tables)

Borrowings (Tables)	3 Months Ended
	Mar. 31, 2020
Borrowings
Summary of borrowings and junior subordinated debentures	March 31, 2020 December 31, 2019 Securities sold under repurchase agreements $ 51,236 $ 48,693 Other short-term borrowings 1 6,375 48,500 Junior subordinated debentures 25,773 57,734 Senior notes 44,297 44,270 Notes payable and other borrowings 26,609 6,673 Total borrowings $ 154,290 $ 205,870 1 Includes short-term FHLBC advances for both periods presented.

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	3 Months Ended
	Mar. 31, 2020
Equity Compensation Plans
Summary of changes in nonvested shares of restricted share rights	March 31, 2020 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Unvested at January 1 555,283 $ 12.85 Granted 137,944 12.26 Vested (119,452) 11.00 Forfeited - - Unvested at March 31 573,775 $ 13.09

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share
Schedule of Earnings Per Share	Three Months Ended March 31, 2020 2019 Basic earnings per share: Weighted-average common shares outstanding 29,929,763 29,845,653 Net income $ 275 $ 8,468 Basic earnings per share $ 0.01 $ 0.28 Diluted earnings per share: Weighted-average common shares outstanding 29,929,763 29,845,653 Dilutive effect of unvested restricted awards 1 560,842 497,978 Diluted average common shares outstanding 30,490,605 30,343,631 Net Income $ 275 $ 8,468 Diluted earnings per share $ 0.01 $ 0.28 1 Includes the common stock equivalents for restricted share rights that are dilutive.

Regulatory & Capital Matters (T

Regulatory & Capital Matters (Tables)	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 Common equity tier 1 capital to risk weighted assets Consolidated $ 251,168 10.85 % $ 162,044 7.000 % N/A N/A Old Second Bank 296,496 12.89 161,014 7.000 $ 149,513 6.50 % Total capital to risk weighted assets Consolidated 303,182 13.09 243,194 10.500 N/A N/A Old Second Bank 323,510 14.07 241,425 10.500 229,929 10.00 Tier 1 capital to risk weighted assets Consolidated 276,168 11.93 196,767 8.500 N/A N/A Old Second Bank 296,496 12.89 195,517 8.500 184,016 8.00 Tier 1 capital to average assets Consolidated 276,168 10.57 104,510 4.00 N/A N/A Old Second Bank 296,496 11.36 104,400 4.00 130,500 5.00 December 31, 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 1 Amounts are shown inclusive of a capital conservation buffer of 2.50%. 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.”

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2020
Fair Value Measurements
Schedule of balance of assets and liabilities which are measured at fair value on a recurring basis	March 31, 2020 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 4,152 $ - $ - $ 4,152 U.S. government agencies - 7,723 - 7,723 U.S. government agencies mortgage-backed - 17,255 - 17,255 States and political subdivisions - 243,938 11,157 255,095 Collateralized mortgage obligations - 53,403 - 53,403 Asset-backed securities - 77,727 - 77,727 Collateralized loan obligations - 34,339 - 34,339 Loans held-for-sale - 10,049 - 10,049 Mortgage servicing rights - - 4,108 4,108 Interest rate swap agreements - 11,115 - 11,115 Mortgage banking derivatives - 732 - 732 Total $ 4,152 $ 456,281 $ 15,265 $ 475,698 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 16,912 $ - $ 16,912 Total $ - $ 16,912 $ - $ 16,912 December 31, 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
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis	Three Months Ended March 31, 2020 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2020 $ 5,419 $ 5,935 Total gains or losses Included in earnings (6) (1,859) Included in other comprehensive income (325) - Purchases, issuances, sales, and settlements Purchases 6,100 - Issuances - 307 Settlements (31) (275) Ending balance March 31, 2020 $ 11,157 $ 4,108 Three Months Ended March 31, 2019 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2019 $ 8,165 $ 7,357 Total gains or losses Included in earnings (8) (721) Included in other comprehensive income 171 - Purchases, issuances, sales, and settlements Purchases 11,325 - Issuances - 177 Settlements (97) (98) Ending balance March 31, 2019 $ 19,556 $ 6,715
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 March 31, 2020: Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 4,108 Discounted Cash Flow Discount Rate 10.0 - 17.0% 10.1 % Prepayment Speed 7.0 - 71.8% 20.7 % 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 %
Schedule of assets measured at fair value on a nonrecurring basis	March 31, 2020 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 23,436 $ 23,436 Other real estate owned, net 2 - - 5,049 5,049 Total $ - $ - $ 28,485 $ 28,485 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 $25.3 million and a valuation allowance of $1.9 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $732,000 for the three months ended March 31, 2020. 2 OREO is measured at 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 $12.3 million, net of a valuation allowance of $6.4 million and a participation of $937,000 at March 31, 2020. December 31, 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 resulting in an increase of specific allocations within the allowance for credit losses on loans of $783,000 for the year December 31, 2019. 2 OREO is measured at 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 a participation of $937,000, at December 31, 2019.

Fair Values of Financial Inst_2

Fair Values of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2020
Fair Values of Financial Instruments
Schedule of carrying amount and estimated fair values of financial instruments	March 31, 2020 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 27,627 $ 27,627 $ 27,627 $ - $ - Interest bearing deposits with financial institutions 45,511 45,511 45,511 - - Securities available-for-sale 449,694 449,694 4,152 434,385 11,157 FHLBC and FRBC stock 9,917 9,917 - 9,917 - Loans held-for-sale 10,049 10,049 - 10,049 - Net loans 1,927,159 1,947,974 - - 1,947,974 Interest rate swap agreements 11,115 11,115 - 11,115 Interest receivable on securities and loans 9,392 9,392 - 9,392 - Financial liabilities: Noninterest bearing deposits $ 702,598 $ 702,598 $ 702,598 $ - $ - Interest bearing deposits 1,493,044 1,496,968 - 1,496,968 - Securities sold under repurchase agreements 51,236 51,236 - 51,236 - Other short-term borrowings 6,375 6,375 - 6,375 - Junior subordinated debentures 25,773 9,257 - 9,257 - Senior notes 44,297 42,689 42,689 - - Note payable and other borrowings 26,609 27,003 - 27,003 - Interest rate swap agreements 16,795 16,795 - 16,795 - Interest payable on deposits and borrowings 1,728 1,728 4 1,724 - 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 Interest rate swap agreements 2,771 2,771 - 2,771 - Interest receivable on securities and loans 9,697 9,697 - 9,697 - Financial liabilities: Noninterest bearing deposits $ 669,795 $ 669,975 $ 669,975 $ - $ - 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 5,921 5,921 - 5,921 - Interest payable on deposits and borrowings 1,079 1,079 - 1,079 -

Derivatives, Hedging Activiti_2

Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk (Tables)	3 Months Ended
	Mar. 31, 2020
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Schedule of fair value of derivative financial instruments as well as their classification on the Balance Sheet	March 31, 2020 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 2,838 Other Liabilities 8,518 Total derivatives designated as hedging instruments 2,838 8,518 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 193,418 Other Assets 8,277 Other Liabilities 8,277 Interest rate lock commitments and forward contracts 80,500 Other Assets 732 Other Liabilities - Other contracts 28,052 Other Assets - Other Liabilities 118 Total derivatives not designated as hedging instruments 9,009 8,395 December 31, 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 2,771 Other Liabilities 2,771 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 3,021 2,824
Schedule of financial instrument commitments	March 31, 2020 December 31, 2019 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ 329 $ 9,381 $ 9,710 $ 339 $ 9,612 $ 9,951 Commercial standby - - - - - - Performance standby 571 6,070 6,641 571 6,212 6,783 900 15,451 16,351 910 15,824 16,734 Non-borrower: Performance standby - 67 67 - 67 67 Total letters of credit $ 900 $ 15,518 $ 16,418 $ 910 $ 15,891 $ 16,801 Unused loan commitments $ 112,537 $ 326,945 $ 439,482 $ 111,348 $ 320,120 $ 431,468

Basis of Presentation and Cha_2

Basis of Presentation and Changes in Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Change in allowance for credit loss	$ 8,000
Provision for loan and lease losses	8,000
Retained earnings	209,915	$ 213,723
Allowance for credit loss	5,500
Allowance for unfunded commitments	2,500
Goodwill	18,600
Accounting Standards Update 2016-13 | Restatement Adjustment [Member]
ACL on loans and leases	5,900
Reserve for unfunded commitments	1,700
ACL increase from non-accretable purchase accounting adjustments	$ 2,500
Retained earnings		(3,700)
Deferred tax assets		$ 1,400

Basis of Presentation and Cha_3

Basis of Presentation and Changes in Significant Accounting Policies - Dividend (Details) - USD ($)	May 11, 2020	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Apr. 21, 2020
Goodwill and Core Deposit Intangible
Amortization of core deposit intangible			$ 132,000	$ 128,000	$ 132,000
Subsequent Events
Payments of Dividends		$ 30,000,000
Subsequent Event
Subsequent Events
Dividends Payable, Amount Per Share						$ 0.01
Payments of Dividends	$ 297,000

Acquisitions (Details)

Acquisitions (Details) $ in Millions	Apr. 20, 2018USD ($)item	Mar. 31, 2020USD ($)
Business Acquisition [Line Items]
Goodwill		$ 18.6
Deposits	$ 248.5
Assets acquired:
Loans	227.6
Goodwill and core deposit intangible	10.2
Deferred tax assets, net	$ 3.5
GCFC/ABC Bank
Business Acquisition [Line Items]
Number of bank branches operated | item	4
Acquisition price	$ 41.1
Subordinated debentures retired	6.6
Goodwill	10.2
Core deposit intangible	3.1
Valuation adjustment, fixed assets	1.5
Valuation adjustment, loan valuation mark	$ 11.2
Loans payable		$ 23.4

Securities - Investment Portfol

Securities - Investment Portfolio (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Securities
Pretax realized losses on sale of available-for-sale securities	$ 41	$ 578
FHLB and FRB Stock
FHLBC stock	3,700
FRB stock	$ 6,200

Securities - Amortized Cost and

Securities - Amortized Cost and Fair Value (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Mar. 31, 2019USD ($)	Mar. 31, 2020USD ($)item	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)
Securities Available-for-Sale
Amortized Cost		$ 446,544		$ 475,146
Gross Unrealized Gains		14,716		13,285
Gross Unrealized Losses		(11,566)		(3,783)
Fair Value	$ 449,694	449,694	$ 449,694	484,648
Accrued interest receivable		3,000		3,200
Other disclosures
Purchases	46,176	6,100
Sales	$ 81,524	$ 18,126	$ 81,524
Number of originators | item		2
Securities pledged to secure deposits and for other purposes		$ 320,300		320,800
US Treasury Securities [Member]
Securities Available-for-Sale
Amortized Cost		4,011		4,010
Gross Unrealized Gains		141		26
Fair Value		4,152		4,036
US Government Corporations and Agencies Securities [Member]
Securities Available-for-Sale
Amortized Cost		7,870		8,502
Gross Unrealized Losses		(147)		(165)
Fair Value		7,723		8,337
U.S. government agencies mortgage-backed
Securities Available-for-Sale
Amortized Cost				16,164
Gross Unrealized Gains				443
Gross Unrealized Losses				(19)
Fair Value				16,588
US States and Political Subdivisions Debt Securities [Member]
Securities Available-for-Sale
Amortized Cost		244,429		240,399
Gross Unrealized Gains		12,353		11,207
Gross Unrealized Losses		(1,687)		(2,431)
Fair Value		255,095		249,175
Collateralized Mortgage Obligations [Member]
Securities Available-for-Sale
Amortized Cost		56,104		57,059
Gross Unrealized Gains		709		963
Gross Unrealized Losses		(3,410)		(38)
Fair Value		53,403		57,984
Asset-backed Securities [Member]
Securities Available-for-Sale
Amortized Cost		82,005		82,114
Gross Unrealized Gains		210		617
Gross Unrealized Losses		(4,488)		(887)
Fair Value		77,727		81,844
FFEL
Other disclosures
Asset-backed securities		$ 55,800
Percentage of outstanding principal amount of loans guaranteed by US Department of Education		97
Total added credit enhancement in the form of overcollaterization and/or subordination of outstanding principal		$ 4,800
Percentage of total added credit enhancement in the form of overcollaterization and/or subordination of outstanding principal		8.52
FFEL | 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
FFEL | 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
Collateralized loan obligations
Securities Available-for-Sale
Amortized Cost		$ 36,104		66,898
Gross Unrealized Gains		69		29
Gross Unrealized Losses		(1,834)		(243)
Fair Value		34,339		$ 66,684
Mortgage Backed Securities, Issued by US Government Agencies [Member]
Securities Available-for-Sale
Amortized Cost		16,021
Gross Unrealized Gains		1,234
Fair Value		17,255
GCO Education Loan Funding Corp [Member]
Securities Available-for-Sale
Amortized Cost		27,911
Fair Value		26,501
Towd Point Mortgage Trust
Securities Available-for-Sale
Amortized Cost		33,360
Fair Value		$ 31,996
Towd Point Mortgage Trust | Stockholders' Equity, Total [Member]
Other disclosures
Credit risk as a percentage of benchmark		10.00%
Stockholders' Equity, Total [Member] | GCO Education Loan Funding Corp [Member]
Other disclosures
Credit risk as a percentage of benchmark		10.00%

Securities - Contractural Matur

Securities - Contractural Maturities (Details) - USD ($) $ in Thousands	1 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
Securities Available-for-Sale, Amortized Cost
Due in one year or less	$ 6,606
Due after one year through five years	6,287
Due after five years through ten years	16,117
Due after ten years	227,300
Debt securities excluding securities not due at a single maturity date	256,310
Total	$ 446,544	$ 475,146
Securities Available-for-Sale, Weighted Average Yield
Due in one year or less (as a percent)	2.42%
Due after one year through five years (as a percent)	2.11%
Due after five years through ten years (as a percent)	2.96%
Due after ten years (as a percent)	3.01%
Debt securities (as a percent)	2.97%
Total (as a percent)	3.03%
Securities Available-for-Sale, Fair Value
Due in one year or less			$ 6,625
Due after one year through five years			6,509
Due after five years through ten years			16,506
Due after ten years			237,330
Debt securities			266,970
Fair Value	$ 449,694	484,648	449,694
Collateralized Mortgage Obligations [Member]
Securities Available-for-Sale, Amortized Cost
Total	56,104	57,059
Securities Available-for-Sale, Fair Value
Fair Value	53,403	57,984
Asset-backed Securities [Member]
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	82,005
Total	$ 82,005	82,114
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	2.75%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date			77,727
Fair Value	$ 77,727	81,844
Collateralized loan obligations
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	36,104
Total	$ 36,104	66,898
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	3.59%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date			34,339
Fair Value	$ 34,339	$ 66,684
Mortgage-backed and collateralized mortgage obligations
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	$ 72,125
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	3.30%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date			$ 70,658

Securities - Unrealized Loss Po

Securities - Unrealized Loss Positions (Details)	Mar. 31, 2020USD ($)security	Dec. 31, 2019USD ($)security
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	28	19
Greater than 12 months in an unrealized loss position | security	12	15
Total	40	34
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 7,306,000	$ 2,602,000
Greater than 12 months in an unrealized loss position	4,260,000	1,181,000
Total	11,566,000	3,783,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	113,063,000	129,582,000
Greater than 12 months in an unrealized loss position	55,109,000	45,240,000
Total	$ 168,172,000	$ 174,822,000
US Government Corporations and Agencies Securities [Member]
Securities Available-for-Sale, Number of Securities
Greater than 12 months in an unrealized loss position | security	4	4
Total	4	4
Securities Available-for-Sale, Unrealized Losses
Greater than 12 months in an unrealized loss position	$ 147,000	$ 165,000
Total	147,000	165,000
Securities Available-for-Sale, Fair Value
Greater than 12 months in an unrealized loss position	7,723,000	8,337,000
Total	$ 7,723,000	$ 8,337,000
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 | security		2
Total		5
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
Total		19,000
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
Total		$ 3,861,000
US States and Political Subdivisions Debt Securities [Member]
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	4	6
Greater than 12 months in an unrealized loss position | security	2	2
Total	6	8
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 588,000	$ 1,665,000
Greater than 12 months in an unrealized loss position	1,099,000	766,000
Total	1,687,000	2,431,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	25,038,000	41,043,000
Greater than 12 months in an unrealized loss position	5,904,000	6,593,000
Total	$ 30,942,000	$ 47,636,000
Collateralized Mortgage Obligations [Member]
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	12	2
Greater than 12 months in an unrealized loss position | security	2	2
Total	14	4
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 3,339,000	$ 26,000
Greater than 12 months in an unrealized loss position	71,000	12,000
Total	3,410,000	38,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	35,811,000	9,054,000
Greater than 12 months in an unrealized loss position	1,051,000	1,209,000
Total	$ 36,862,000	$ 10,263,000
Asset-backed Securities [Member]
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	9	4
Greater than 12 months in an unrealized loss position | security	2	1
Total	11	5
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 2,530,000	$ 839,000
Greater than 12 months in an unrealized loss position	1,958,000	48,000
Total	4,488,000	887,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	36,074,000	54,540,000
Greater than 12 months in an unrealized loss position	29,244,000	3,238,000
Total	$ 65,318,000	$ 57,778,000
Collateralized loan obligations
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position | security	3	4
Greater than 12 months in an unrealized loss position | security	2	4
Total	5	8
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 849,000	$ 62,000
Greater than 12 months in an unrealized loss position	985,000	181,000
Total	1,834,000	243,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	16,140,000	21,927,000
Greater than 12 months in an unrealized loss position	11,187,000	25,020,000
Total	$ 27,327,000	$ 46,947,000

Securities - Realized Gain (Los

Securities - Realized Gain (Loss) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Securities
Sales	$ 81,524	$ 18,126	$ 81,524
Gross realized gains on securities		17	605
Gross realized losses on securities		(41)	(578)
Securities (losses) gains, net		(24)	27
Related tax (expense) benefit		$ 7	$ (8)
Effective tax rate applied (as a percent)		29.20%	29.60%
Available-for-sale Securities Pledged as Collateral		$ 320,300		$ 320,800

Loans and Allowance for Credi_3

Loans and Allowance for Credit Losses on Loans - Major Classifications (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Loans
Total loans, excluding deferred loan costs and PCI loans	$ 1,957,204	$ 1,920,425
Net deferred loan fees		1,786
Total loans, excluding PCI loans	1,957,204	1,922,211
PCI loans	1,957,204	1,930,812
Total loans, including deferred loan loan costs and PCI	1,957,204	1,930,812
Allowance for credit losses	(30,045)	(19,789)
Total loans	1,927,159	1,911,023
Total Loans	1,957,204
Loans and leases receivable, accrued interest receivable	6,400	6,500
PCI
Loans
PCI loans		8,601
Non-PCI
Loans
Total loans, excluding PCI loans		1,922,211
Commercial
Loans
Total loans, excluding deferred loan costs and PCI loans	364,626	332,842
Total loans, excluding PCI loans		332,842
Total loans, including deferred loan loan costs and PCI	364,626
Total Loans	364,626
Leases
Loans
Total loans, excluding deferred loan costs and PCI loans	126,237	119,751
Total loans, excluding PCI loans		119,751
Total loans, including deferred loan loan costs and PCI	126,237
Total Loans	126,237
Commercial real estate - Investor
Loans
Total loans, excluding deferred loan costs and PCI loans	503,905	520,095
Total loans, excluding PCI loans		520,095
Total loans, including deferred loan loan costs and PCI	503,905
Total Loans	503,905
Commercial real estate - Owner occupied
Loans
Total loans, excluding deferred loan costs and PCI loans	349,595	345,504
Total loans, excluding PCI loans		345,504
Total loans, including deferred loan loan costs and PCI	349,595
Construction
Loans
Total loans, excluding deferred loan costs and PCI loans	78,159	69,617
Total loans, excluding PCI loans		69,617
Total loans, including deferred loan loan costs and PCI	78,159
Real estate - Investor
Loans
Total loans, excluding deferred loan costs and PCI loans	69,429	71,105
Total loans, excluding PCI loans		71,105
Total loans, including deferred loan loan costs and PCI	69,429
Real estate - Owner occupied
Loans
Total loans, excluding deferred loan costs and PCI loans	129,982	136,023
Total loans, excluding PCI loans		136,023
Total loans, including deferred loan loan costs and PCI	129,982
Multifamily
Loans
Total loans, excluding deferred loan costs and PCI loans	195,297	189,773
Total loans, excluding PCI loans		189,773
Multifamily | Real estate - construction
Loans
Total loans, including deferred loan loan costs and PCI	195,297
HELOC
Loans
Total loans, excluding deferred loan costs and PCI loans	93,165	91,605
Total loans, excluding PCI loans		91,605
Total loans, including deferred loan loan costs and PCI	93,165
Total Loans	93,165
HELOC - Purchased
Loans
Total loans, excluding deferred loan costs and PCI loans	30,880	31,852
Total loans, excluding PCI loans		31,852
Total loans, including deferred loan loan costs and PCI	30,880
Total Loans	30,880
Other 1
Loans
Total loans, excluding deferred loan costs and PCI loans	15,929	12,258
Total loans, excluding PCI loans		$ 14,044
Total loans, including deferred loan loan costs and PCI	$ 15,929

Loans and Allowance for Credi_4

Loans and Allowance for Credit Losses on Loans - Major Classifications - Loan Concentrations (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Apr. 20, 2018
Loans
Loans			$ 227.6
Real Estate Portfolio Segment [Member] | Loan receivables | Customer Concentration Risk [Member]
Loans
Credit risk as a percentage of benchmark		75.40%
Loans receivable as a percentage of total portfolio	74.10%

Loans and Allowance for Credi_5

Loans and Allowance for Credit Losses on Loans - Collateral dependent loans (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	$ 25,039
ACL Allocation	30,045	$ 19,789
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	22,347
Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	2,416
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	276
Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	1,867
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	2,419
Commercial | Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	2,416
Commercial | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	3
Commercial | Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	89
Leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	264
Leases | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	264
Leases | Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	61
Commercial real estate - Investor
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	4,430
Commercial real estate - Investor | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	4,430
Commercial real estate - Investor | Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	203
Commercial real estate - Owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	8,459
Commercial real estate - Owner occupied | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	8,459
Commercial real estate - Owner occupied | Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	204
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	2,245
Construction | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	2,245
Construction | Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	852
Real estate - Investor
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	859
Real estate - Investor | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	859
Real estate - Owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	3,739
Real estate - Owner occupied | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	3,739
Real estate - Owner occupied | Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	137
Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	1,497
Multifamily | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	1,497
Multifamily | Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	318
HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	1,004
HELOC | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	1,004
HELOC - Purchased
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	114
HELOC - Purchased | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	114
Other 1
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	9
Other 1 | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	9
Other 1 | Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	$ 3

Loans and Allowance for Credi_6

Loans and Allowance for Credit Losses on Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Allowance for loan losses:
Beginning Balance	$ 19,789	$ 19,006
Provision (release)	5,499	450
Charge-offs	1,401	345
Recoveries	279	205
Ending Balance	30,045	19,316
Loans:
Ending balance	1,957,204		$ 1,930,812
Ending balance	1,957,204
Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	5,879
Commercial
Allowance for loan losses:
Beginning Balance	3,015	2,832
Provision (release)	539	202
Charge-offs	97	12
Recoveries	12	30
Ending Balance	3,177	3,052
Loans:
Ending balance	364,626
Commercial | Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	(292)
Commercial leases
Allowance for loan losses:
Beginning Balance	1,262	734
Provision (release)	127	71
Ending Balance	1,890	805
Commercial leases | Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	501
Leases
Loans:
Ending balance	126,237
Commercial real estate - Investor
Allowance for loan losses:
Beginning Balance	6,218	5,492
Provision (release)	536	207
Charge-offs	13	144
Recoveries	21	20
Ending Balance	6,021	5,575
Loans:
Ending balance	503,905
Commercial real estate - Investor | Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	(741)
Commercial real estate - Owner occupied
Allowance for loan losses:
Beginning Balance	3,678	3,835
Provision (release)	329	(603)
Charge-offs	1,109	87
Recoveries	1	3
Ending Balance	2,051	3,148
Commercial real estate - Owner occupied | Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	(848)
Real estate - construction
Allowance for loan losses:
Beginning Balance	513	969
Provision (release)	2,184	(24)
Recoveries, net		(1)
Ending Balance	4,031	944
Real estate - construction | Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	1,334
Real estate - Investor
Allowance for loan losses:
Beginning Balance	601	629
Provision (release)	534	(3)
Charge-offs		6
Recoveries	21	16
Ending Balance	1,896	636
Real estate - Investor | Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	740
Real estate - Owner occupied
Allowance for loan losses:
Beginning Balance	1,257	1,302
Provision (release)	769	4
Charge-offs	1	12
Recoveries	23	26
Ending Balance	3,368	1,320
Real estate - Owner occupied | Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	1,320
Multifamily
Allowance for loan losses:
Beginning Balance	1,444	1,143
Provision (release)	674	2
Recoveries		8
Ending Balance	3,850	1,153
Multifamily | Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	1,732
HELOC
Allowance for loan losses:
Beginning Balance	1,161	1,449
Provision (release)	(485)	(170)
Charge-offs	83
Recoveries	141	46
Ending Balance	2,260	1,325
Loans:
Ending balance	93,165
HELOC | Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	1,526
HELOC - Purchased
Allowance for loan losses:
Provision (release)	850
Ending Balance	850
Loans:
Ending balance	30,880
Other
Allowance for loan losses:
Beginning Balance	640	621
Provision (release)	(558)	764
Charge-offs	98	84
Recoveries	60	57
Ending Balance	651	$ 1,358
Other | Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	$ 607

Loans and Allowance for Credi_7

Loans and Allowance for Credit Losses on Loans - Aging Analysis (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Aged analysis of past due loans
Total Past Due	$ 32,716
Current	1,924,488
Total Past Due Including PCI loans		$ 17,196
Current including PCI Loans		1,898,221
Non accrual including PCI Loans	19,497	15,395
Total loans, excluding PCI loans	1,957,204	1,922,211
PCI loans	1,957,204	1,930,812
Total loans, including deferred loan loan costs and PCI	1,957,204	1,930,812
Recorded Investment 90 days or Greater Past Due and Accruing	1,406	2,628
Total Loans	1,957,204
30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	17,951
Total Past Due Including PCI loans		9,379
60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	3,020
Total Past Due Including PCI loans		5,272
90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	11,745
Total Past Due Including PCI loans		2,545
PCI
Aged analysis of past due loans
Total Past Due		261
Current		5,377
Nonaccrual		2,963
PCI loans		8,601
PCI | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due		261
Non-PCI
Aged analysis of past due loans
Total Past Due		16,935
Current		1,892,844
Nonaccrual	19,497	12,432
Total loans, excluding PCI loans		1,922,211
Recorded Investment 90 days or Greater Past Due and Accruing		2,628
Non-PCI | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due		9,118
Non-PCI | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due		5,272
Non-PCI | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due		2,545
Commercial
Aged analysis of past due loans
Total Past Due	3,357	4,299
Current	361,269	328,399
Nonaccrual	2,418	144
Total loans, excluding PCI loans		332,842
Total loans, including deferred loan loan costs and PCI	364,626
Recorded Investment 90 days or Greater Past Due and Accruing		2,132
Total Loans	364,626
Commercial | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	1,032	1,271
Commercial | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	46	925
Commercial | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	2,279	2,103
Leases
Aged analysis of past due loans
Total Past Due	799	443
Current	125,438	118,979
Nonaccrual	187	329
Total loans, excluding PCI loans		119,751
Total loans, including deferred loan loan costs and PCI	126,237
Recorded Investment 90 days or Greater Past Due and Accruing		128
Total Loans	126,237
Leases | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	613	362
Leases | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	63
Leases | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	123	81
Commercial real estate - Investor
Aged analysis of past due loans
Total Past Due	3,657	1,064
Current	500,248	517,336
Nonaccrual	1,750	1,695
Total loans, excluding PCI loans		520,095
Total loans, including deferred loan loan costs and PCI	503,905
Recorded Investment 90 days or Greater Past Due and Accruing	59	348
Total Loans	503,905
Commercial real estate - Investor | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	2,235	626
Commercial real estate - Investor | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due		95
Commercial real estate - Investor | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	1,422	343
Commercial real estate - Owner occupied
Aged analysis of past due loans
Total Past Due		3,495
Current		336,829
Nonaccrual	7,436	5,180
Total loans, excluding PCI loans		345,504
Total loans, including deferred loan loan costs and PCI	349,595
Commercial real estate - Owner occupied | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due		2,469
Commercial real estate - Owner occupied | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due		1,026
Real estate - construction
Aged analysis of past due loans
Total Past Due		26
Current		69,498
Nonaccrual	2,245	93
Total loans, excluding PCI loans		69,617
Real estate - construction | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due		26
Real estate - construction | Commercial Real Estate Owner Occupied Special Purpose Loan [Member]
Aged analysis of past due loans
Total Past Due	1,230
Current	76,929
Recorded Investment 90 days or Greater Past Due and Accruing	555
Total Loans	78,159
Real estate - construction | Commercial Real Estate Owner Occupied Special Purpose Loan [Member] | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	675
Real estate - construction | Commercial Real Estate Owner Occupied Special Purpose Loan [Member] | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	555
Real estate - Investor
Aged analysis of past due loans
Total Past Due		266
Current		70,051
Nonaccrual	859	788
Total loans, excluding PCI loans		71,105
Total loans, including deferred loan loan costs and PCI	69,429
Real estate - Investor | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due		141
Real estate - Investor | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due		125
Real estate - Investor | Commercial Real Estate, Non Owner Occupied General Purpose Loan [Member]
Aged analysis of past due loans
Total Past Due	1,087
Current	68,342
Total Loans	69,429
Real estate - Investor | 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	291
Real estate - Investor | 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	100
Real estate - Investor | 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	696
Real estate - Owner occupied
Aged analysis of past due loans
Total Past Due		4,801
Current		128,650
Nonaccrual	3,406	2,572
Total loans, excluding PCI loans		136,023
Total loans, including deferred loan loan costs and PCI	129,982
Real estate - Owner occupied | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due		3,450
Real estate - Owner occupied | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due		1,351
Real estate - Owner occupied | Commercial Real Estate, Non Owner Occupied Special Purpose Loan [Member]
Aged analysis of past due loans
Total Past Due	6,489
Current	123,493
Recorded Investment 90 days or Greater Past Due and Accruing	736
Total Loans	129,982
Real estate - Owner occupied | Commercial Real Estate, Non Owner Occupied Special Purpose Loan [Member] | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	4,183
Real estate - Owner occupied | Commercial Real Estate, Non Owner Occupied Special Purpose Loan [Member] | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	167
Real estate - Owner occupied | Commercial Real Estate, Non Owner Occupied Special Purpose Loan [Member] | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	2,139
Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Aged analysis of past due loans
Total Past Due	11,202
Current	338,393
Total Loans	349,595
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	5,062
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	2,080
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	4,060
Real estate - commercial | Real estate - construction | Construction Real Estate, Homebuilder Loan [Member]
Aged analysis of past due loans
Total Past Due	548
Current	15,381
Total Loans	15,929
Real estate - commercial | Real estate - construction | Construction Real Estate, Homebuilder Loan [Member] | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	537
Real estate - commercial | Real estate - construction | Construction Real Estate, Homebuilder Loan [Member] | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	3
Real estate - commercial | Real estate - construction | Construction Real Estate, Homebuilder Loan [Member] | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	8
Multifamily
Aged analysis of past due loans
Total Past Due		1,710
Current		187,995
Nonaccrual	69	68
Total loans, excluding PCI loans		189,773
Multifamily | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due		10
Multifamily | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due		1,700
Multifamily | Commercial Real Estate, Retail Properties Loan [Member]
Aged analysis of past due loans
Total Past Due	2,445
Current	192,852
Total Loans	195,297
Multifamily | Commercial Real Estate, Retail Properties Loan [Member] | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	1,815
Multifamily | Commercial Real Estate, Retail Properties Loan [Member] | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	561
Multifamily | Commercial Real Estate, Retail Properties Loan [Member] | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	69
Multifamily | Real estate - construction
Aged analysis of past due loans
Total loans, including deferred loan loan costs and PCI	195,297
HELOC
Aged analysis of past due loans
Total Past Due	1,788	803
Current	91,377	89,438
Nonaccrual	1,004	1,364
Total loans, excluding PCI loans		91,605
Total loans, including deferred loan loan costs and PCI	93,165
Recorded Investment 90 days or Greater Past Due and Accruing	56	20
Total Loans	93,165
HELOC | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	1,459	735
HELOC | 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due		50
HELOC | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	329	18
HELOC - Purchased
Aged analysis of past due loans
Total Past Due	114
Current	30,766	31,672
Nonaccrual	114	180
Total loans, excluding PCI loans		31,852
Total loans, including deferred loan loan costs and PCI	30,880
Total Loans	30,880
HELOC - Purchased | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	49
HELOC - Purchased | 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	65
Other
Aged analysis of past due loans
Total Past Due		28
Current		13,997
Nonaccrual	$ 9	19
Total loans, excluding PCI loans		14,044
Other | 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due		$ 28

Loans and Allowance for Credi_8

Loans and Allowance for Credit Losses on Loans - Nonaccruals (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non accrual including PCI Loans	$ 19,497,000	$ 15,395,000
Nonaccrual with no ACL including PCI	16,958,000	11,749,000
Interest on nonacccrual loans	152,000
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	2,418,000	144,000
Nonaccrual with no ACL	2,279,000
Leases
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	187,000	329,000
Nonaccrual with no ACL	69,000	70,000
Commercial real estate - Investor
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	1,750,000	1,695,000
Nonaccrual with no ACL	1,750,000	1,590,000
Commercial real estate - Owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	7,436,000	5,180,000
Nonaccrual with no ACL	7,357,000	2,366,000
Real estate - construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	2,245,000	93,000
Nonaccrual with no ACL	50,000	93,000
Real estate - Investor
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	859,000	788,000
Nonaccrual with no ACL	859,000	788,000
Real estate - Owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	3,406,000	2,572,000
Nonaccrual with no ACL	3,406,000	2,475,000
Multifamily
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	69,000	68,000
Nonaccrual with no ACL	69,000	68,000
HELOC
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	1,004,000	1,364,000
Nonaccrual with no ACL	1,004,000	1,154,000
HELOC - Purchased
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	114,000	180,000
Nonaccrual with no ACL	114,000	180,000
Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	9,000	19,000
Nonaccrual with no ACL	1,000	2,000
PCI
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual		2,963,000
Nonaccrual with no ACL		2,963,000
Non-PCI
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	19,497,000	12,432,000
Nonaccrual with no ACL	$ 16,958,000	$ 8,786,000

Loans and Allowance for Credi_9

Loans and Allowance for Credit Losses on Loans - Credit Quality (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Loans by risk rating
Total Loans	$ 1,957,204,000
2020	87,421,000
2019	532,793,000
2018	350,510,000
2017	247,481,000
2016	172,190,000
Prior	216,734,000
Revolving Loans	350,075,000
Total loans, excluding PCI loans	1,957,204,000	$ 1,922,211,000
Loans and Leases Receivable, Net of Deferred Income	1,957,204,000	1,930,812,000
Total loans, including deferred loan loan costs and PCI	1,957,204,000	1,930,812,000
Minimum [Member]
Loans by risk rating
Loan commitment for inclusion in credit quality analysis	50,000
Pass [Member]
Loans by risk rating
2020	85,958,000
2019	512,622,000
2018	338,623,000
2017	240,167,000
2016	161,685,000
Prior	206,238,000
Revolving Loans	334,901,000
Total loans, including deferred loan loan costs and PCI	1,880,194,000	1,863,146,000
Special Mention [Member]
Loans by risk rating
2020	42,000
2019	12,221,000
2018	2,194,000
2017	3,405,000
2016	5,748,000
Prior	1,269,000
Revolving Loans	8,131,000
Total loans, including deferred loan loan costs and PCI	33,010,000	26,886,000
Substandard [Member]
Loans by risk rating
2020	1,421,000
2019	7,950,000
2018	9,693,000
2017	3,909,000
2016	4,757,000
Prior	9,227,000
Revolving Loans	7,043,000
Total loans, including deferred loan loan costs and PCI	44,000,000	40,780,000
PCI
Loans by risk rating
Loans and Leases Receivable, Net of Deferred Income		8,601,000
PCI | Pass [Member]
Loans by risk rating
Loans and Leases Receivable, Net of Deferred Income		573,000
PCI | Special Mention [Member]
Loans by risk rating
Loans and Leases Receivable, Net of Deferred Income		261,000
PCI | Substandard [Member]
Loans by risk rating
Loans and Leases Receivable, Net of Deferred Income		7,767,000
Non-PCI
Loans by risk rating
Total loans, excluding PCI loans		1,922,211,000
Non-PCI | Pass [Member]
Loans by risk rating
Total loans, excluding PCI loans		1,862,573,000
Non-PCI | Special Mention [Member]
Loans by risk rating
Total loans, excluding PCI loans		26,625,000
Non-PCI | Substandard [Member]
Loans by risk rating
Total loans, excluding PCI loans		33,013,000
Commercial
Loans by risk rating
Total Loans	364,626,000
2020	13,380,000
2019	60,106,000
2018	23,278,000
2017	10,701,000
2016	6,419,000
Prior	4,123,000
Revolving Loans	246,619,000
Total loans, excluding PCI loans		332,842,000
Total loans, including deferred loan loan costs and PCI	364,626,000
Commercial | Pass [Member]
Loans by risk rating
2020	13,380,000
2019	48,708,000
2018	20,606,000
2017	10,684,000
2016	3,837,000
Prior	4,074,000
Revolving Loans	232,347,000
Total loans, excluding PCI loans		307,948,000
Total loans, including deferred loan loan costs and PCI	333,636,000
Commercial | Special Mention [Member]
Loans by risk rating
2019	11,152,000
2017	17,000
2016	394,000
Prior	49,000
Revolving Loans	8,118,000
Total loans, excluding PCI loans		13,206,000
Total loans, including deferred loan loan costs and PCI	19,730,000
Commercial | Substandard [Member]
Loans by risk rating
2019	246,000
2018	2,672,000
2016	2,188,000
Revolving Loans	6,154,000
Total loans, excluding PCI loans		11,688,000
Total loans, including deferred loan loan costs and PCI	11,260,000
Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Loans by risk rating
Total Loans	349,595,000
Real estate - commercial | Real estate - construction | Construction Real Estate, Homebuilder Loan [Member]
Loans by risk rating
Total Loans	15,929,000
Real estate - residential
Loans by risk rating
Mortgage loans in process of foreclosure	585,000,000,000	831,000,000,000
Leases
Loans by risk rating
Total Loans	126,237,000
2020	14,148,000
2019	66,029,000
2018	22,923,000
2017	10,210,000
2016	10,035,000
Prior	2,892,000
Total loans, excluding PCI loans		119,751,000
Total loans, including deferred loan loan costs and PCI	126,237,000
Leases | Pass [Member]
Loans by risk rating
2020	14,148,000
2019	65,670,000
2018	22,923,000
2017	10,133,000
2016	9,848,000
Prior	2,892,000
Total loans, excluding PCI loans		119,045,000
Total loans, including deferred loan loan costs and PCI	125,614,000
Leases | Special Mention [Member]
Loans by risk rating
2019	359,000
Total loans, excluding PCI loans		377,000
Total loans, including deferred loan loan costs and PCI	359,000
Leases | Substandard [Member]
Loans by risk rating
2017	77,000
2016	187,000
Total loans, excluding PCI loans		329,000
Total loans, including deferred loan loan costs and PCI	264,000
Commercial real estate - Investor
Loans by risk rating
Total Loans	503,905,000
2020	10,194,000
2019	191,412,000
2018	113,155,000
2017	81,205,000
2016	61,824,000
Prior	44,703,000
Revolving Loans	1,412,000
Total loans, excluding PCI loans		520,095,000
Total loans, including deferred loan loan costs and PCI	503,905,000
Commercial real estate - Investor | Pass [Member]
Loans by risk rating
2020	10,194,000
2019	187,200,000
2018	113,009,000
2017	80,622,000
2016	61,530,000
Prior	43,051,000
Revolving Loans	1,412,000
Total loans, excluding PCI loans		510,640,000
Total loans, including deferred loan loan costs and PCI	497,018,000
Commercial real estate - Investor | Special Mention [Member]
Loans by risk rating
2019	153,000
2017	583,000
2016	19,000
Prior	59,000
Total loans, excluding PCI loans		4,529,000
Total loans, including deferred loan loan costs and PCI	814,000
Commercial real estate - Investor | Substandard [Member]
Loans by risk rating
2019	4,059,000
2018	146,000
2016	275,000
Prior	1,593,000
Total loans, excluding PCI loans		4,926,000
Total loans, including deferred loan loan costs and PCI	6,073,000
Commercial real estate - Owner occupied
Loans by risk rating
2020	29,557,000
2019	64,192,000
2018	88,158,000
2017	53,817,000
2016	61,573,000
Prior	50,470,000
Revolving Loans	1,828,000
Total loans, excluding PCI loans		345,504,000
Total loans, including deferred loan loan costs and PCI	349,595,000
Commercial real estate - Owner occupied | Pass [Member]
Loans by risk rating
2020	28,511,000
2019	60,137,000
2018	86,544,000
2017	48,503,000
2016	54,557,000
Prior	48,603,000
Revolving Loans	1,828,000
Total loans, excluding PCI loans		330,891,000
Total loans, including deferred loan loan costs and PCI	328,683,000
Commercial real estate - Owner occupied | Special Mention [Member]
Loans by risk rating
2019	557,000
2018	560,000
2017	2,805,000
2016	5,325,000
Prior	1,161,000
Total loans, excluding PCI loans		6,657,000
Total loans, including deferred loan loan costs and PCI	10,408,000
Commercial real estate - Owner occupied | Substandard [Member]
Loans by risk rating
2020	1,046,000
2019	3,498,000
2018	1,054,000
2017	2,509,000
2016	1,691,000
Prior	706,000
Total loans, excluding PCI loans		7,956,000
Total loans, including deferred loan loan costs and PCI	10,504,000
Construction
Loans by risk rating
2020	9,281,000
2019	36,982,000
2018	18,836,000
2017	3,248,000
2016	1,035,000
Prior	1,389,000
Revolving Loans	7,388,000
Total loans, excluding PCI loans		69,617,000
Total loans, including deferred loan loan costs and PCI	78,159,000
Construction | Pass [Member]
Loans by risk rating
2020	9,239,000
2019	36,982,000
2018	16,472,000
2017	3,248,000
2016	1,035,000
Prior	1,339,000
Revolving Loans	7,388,000
Total loans, excluding PCI loans		69,355,000
Total loans, including deferred loan loan costs and PCI	75,703,000
Construction | Special Mention [Member]
Loans by risk rating
2020	42,000
Total loans, including deferred loan loan costs and PCI	42,000
Construction | Substandard [Member]
Loans by risk rating
2018	2,364,000
Prior	50,000
Total loans, excluding PCI loans		262,000
Total loans, including deferred loan loan costs and PCI	2,414,000
Real estate - Investor
Loans by risk rating
2020	3,945,000
2019	22,824,000
2018	13,278,000
2017	10,590,000
2016	3,543,000
Prior	13,846,000
Revolving Loans	1,403,000
Total loans, excluding PCI loans		71,105,000
Total loans, including deferred loan loan costs and PCI	69,429,000
Real estate - Investor | Commercial Real Estate, Non Owner Occupied General Purpose Loan [Member]
Loans by risk rating
Total Loans	69,429,000
Real estate - Investor | Pass [Member]
Loans by risk rating
2020	3,599,000
2019	22,824,000
2018	12,634,000
2017	10,586,000
2016	3,543,000
Prior	13,388,000
Revolving Loans	1,403,000
Total loans, excluding PCI loans		69,715,000
Total loans, including deferred loan loan costs and PCI	67,977,000
Real estate - Investor | Substandard [Member]
Loans by risk rating
2020	346,000
2018	644,000
2017	4,000
Prior	458,000
Total loans, excluding PCI loans		1,390,000
Total loans, including deferred loan loan costs and PCI	1,452,000
Real estate - Owner occupied
Loans by risk rating
2020	1,505,000
2019	27,657,000
2018	16,814,000
2017	26,649,000
2016	11,905,000
Prior	43,062,000
Revolving Loans	2,390,000
Total loans, excluding PCI loans		136,023,000
Total loans, including deferred loan loan costs and PCI	129,982,000
Real estate - Owner occupied | Commercial Real Estate, Non Owner Occupied Special Purpose Loan [Member]
Loans by risk rating
Total Loans	129,982,000
Real estate - Owner occupied | Pass [Member]
Loans by risk rating
2020	1,505,000
2019	27,584,000
2018	16,814,000
2017	26,024,000
2016	11,519,000
Prior	39,578,000
Revolving Loans	2,390,000
Total loans, excluding PCI loans		132,258,000
Total loans, including deferred loan loan costs and PCI	125,414,000
Real estate - Owner occupied | Special Mention [Member]
Loans by risk rating
Total loans, excluding PCI loans		134,000
Real estate - Owner occupied | Substandard [Member]
Loans by risk rating
2019	73,000
2017	625,000
2016	386,000
Prior	3,484,000
Total loans, excluding PCI loans		3,631,000
Total loans, including deferred loan loan costs and PCI	4,568,000
Multifamily
Loans by risk rating
Total loans, excluding PCI loans		189,773,000
Multifamily | Commercial Real Estate, Retail Properties Loan [Member]
Loans by risk rating
Total Loans	195,297,000
Multifamily | Pass [Member]
Loans by risk rating
2020	4,167,000
2019	56,534,000
2018	45,839,000
2017	46,900,000
2016	13,903,000
Prior	20,624,000
Revolving Loans	312,000
Total loans, excluding PCI loans		187,560,000
Total loans, including deferred loan loan costs and PCI	188,279,000
Multifamily | Special Mention [Member]
Loans by risk rating
2018	1,634,000
2016	10,000
Total loans, excluding PCI loans		1,710,000
Total loans, including deferred loan loan costs and PCI	1,644,000
Multifamily | Substandard [Member]
Loans by risk rating
2018	2,374,000
2017	619,000
Prior	2,381,000
Total loans, excluding PCI loans		503,000
Total loans, including deferred loan loan costs and PCI	5,374,000
Multifamily | Real estate - construction
Loans by risk rating
2020	4,167,000
2019	56,534,000
2018	49,847,000
2017	47,519,000
2016	13,913,000
Prior	23,005,000
Revolving Loans	312,000
Total loans, including deferred loan loan costs and PCI	195,297,000
HELOC
Loans by risk rating
Total Loans	93,165,000
2020	986,000
2019	3,550,000
2018	2,498,000
2017	2,983,000
2016	1,205,000
Prior	2,055,000
Revolving Loans	79,888,000
Total loans, excluding PCI loans		91,605,000
Total loans, including deferred loan loan costs and PCI	93,165,000
HELOC | Pass [Member]
Loans by risk rating
2020	957,000
2019	3,541,000
2018	2,448,000
2017	2,916,000
2016	1,176,000
Prior	1,500,000
Revolving Loans	78,986,000
Total loans, excluding PCI loans		89,804,000
Total loans, including deferred loan loan costs and PCI	91,524,000
HELOC | Special Mention [Member]
Loans by risk rating
Revolving Loans	13,000
Total loans, excluding PCI loans		12,000
Total loans, including deferred loan loan costs and PCI	13,000
HELOC | Substandard [Member]
Loans by risk rating
2020	29,000
2019	9,000
2018	50,000
2017	67,000
2016	29,000
Prior	555,000
Revolving Loans	889,000
Total loans, excluding PCI loans		1,789,000
Total loans, including deferred loan loan costs and PCI	1,628,000
HELOC - Purchased
Loans by risk rating
Total Loans	30,880,000
2019	65,000
2018	49,000
Prior	30,766,000
Total loans, excluding PCI loans		31,852,000
Total loans, including deferred loan loan costs and PCI	30,880,000
HELOC - Purchased | Pass [Member]
Loans by risk rating
Prior	30,766,000
Total loans, excluding PCI loans		31,672,000
Total loans, including deferred loan loan costs and PCI	30,766,000
HELOC - Purchased | Substandard [Member]
Loans by risk rating
2019	65,000
2018	49,000
Total loans, excluding PCI loans		180,000
Total loans, including deferred loan loan costs and PCI	114,000
Other 1
Loans by risk rating
2020	258,000
2019	3,442,000
2018	1,674,000
2017	559,000
2016	738,000
Prior	423,000
Revolving Loans	8,835,000
Total loans, excluding PCI loans		14,044,000
Total loans, including deferred loan loan costs and PCI	15,929,000
Other 1 | Pass [Member]
Loans by risk rating
2020	258,000
2019	3,442,000
2018	1,334,000
2017	551,000
2016	737,000
Prior	423,000
Revolving Loans	8,835,000
Total loans, excluding PCI loans		13,685,000
Total loans, including deferred loan loan costs and PCI	15,580,000
Other 1 | Substandard [Member]
Loans by risk rating
2018	340,000
2017	8,000
2016	1,000
Total loans, excluding PCI loans		$ 359,000
Total loans, including deferred loan loan costs and PCI	$ 349,000

Loans and Allowance for Cred_10

Loans and Allowance for Credit Losses on Loans - TDR (Details)	1 Months Ended	3 Months Ended
	Mar. 31, 2019USD ($)contract	Mar. 31, 2020USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)
Troubled debt restructurings - modified during the period
# of contracts | contract	4
Pre-modification recorded investment	$ 241,000
Post-modification recorded investment	$ 139,000
TDR's defaulted
Pre-modification outstanding recorded investment during the period		$ 0	$ 0
Other information
Total Past Due		32,716,000
Home Affordable Modification Program [Member]
Troubled debt restructurings - modified during the period
# of contracts | contract	1
Pre-modification recorded investment	$ 39,000
Post-modification recorded investment	$ 34,000
Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Other information
Total Past Due		11,202,000
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	$ 58,000
Post-modification recorded investment	$ 58,000
Real estate - residential | Residential Owner Occupied Loan [Member] | Home Affordable Modification Program [Member]
Troubled debt restructurings - modified during the period
# of contracts | contract	1
Pre-modification recorded investment	$ 105,000
Post-modification recorded investment	$ 9,000
Real estate - residential | HELOC | Residential Owner Occupied Loan [Member] | Others [Member]
Troubled debt restructurings - modified during the period
# of contracts | contract	1
Pre-modification recorded investment	$ 39,000
Post-modification recorded investment	$ 38,000
Commercial
Other information
Total Past Due		3,357,000		$ 4,299,000
90 Days or Greater Past Due
Other information
Total Past Due		11,745,000
90 Days or Greater Past Due | Real estate - commercial | Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Other information
Total Past Due		4,060,000
90 Days or Greater Past Due | Commercial
Other information
Total Past Due		$ 2,279,000		$ 2,103,000

Other Real Estate Owned (Detail

Other Real Estate Owned (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Activity in the other real estate owned (OREO) portfolio, net of valuation reserve
Balance at beginning of period		$ 5,004
Balance at end of period		5,049
Activity in the valuation allowance
Provision for unrealized losses		158
Expenses related to foreclosed assets, net of lease revenue
Gain on sales, net	$ (73)	(23)	$ (73)
Provision for unrealized losses		158
Operating expenses		102	128
Less: Lease revenue			5
Expenses related to OREO, net of lease revenue		237	50
Real Estate, Other
Activity in the other real estate owned (OREO) portfolio, net of valuation reserve
Balance at beginning of period		5,004	7,175
Property additions, net of acquisition adjustments		491
Less: Property disposals, net of gains/losses		288	801
Less: Period valuation adjustments		158
Less: Other adjustments			9
Balance at end of period	6,365	5,049	6,365
Activity in the valuation allowance
Balance at beginning of period		6,712	8,027
Provision for unrealized losses		158
Reductions taken on sales		(466)	(152)
Balance at end of period	$ 7,875	6,404	$ 7,875
Expenses related to foreclosed assets, net of lease revenue
Provision for unrealized losses		$ 158

Deposits - Classifications of D

Deposits - Classifications of Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Deposits
Noninterest bearing demand	$ 702,598	$ 669,795
Savings	338,134	307,015
NOW accounts	428,419	425,792
Money market accounts	277,018	282,478
Certificates of deposit of less than $100,000	231,704	227,578
Certificates of deposit of $100,000 up to $250,000	150,185	151,279
Certificates of deposit of $250,000 or more	67,584	62,812
Total deposits	$ 2,195,642	$ 2,126,749

Borrowings - Summary (Details)

Borrowings - Summary (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Borrowings
Senior Notes	$ 44,297	$ 44,270
Total borrowings	154,290	205,870
Securities Sold under Agreements to Repurchase [Member]
Borrowings
Total borrowings	51,236	48,693
Federal Home Loan Bank Advances [Member]
Borrowings
Total borrowings	6,375	48,500
Junior Subordinated Debt
Borrowings
Total borrowings	25,773	57,734
Senior Notes.
Borrowings
Senior Notes	44,297	44,270
Notes Payable to Banks [Member]
Borrowings
Total borrowings	$ 26,609	$ 6,673

Borrowings - Additional informa

Borrowings - Additional information (Details)	Mar. 02, 2020USD ($)	Feb. 24, 2020USD ($)	Mar. 31, 2020USD ($)item	Dec. 31, 2016	Dec. 31, 2019USD ($)	Apr. 20, 2018USD ($)
Borrowings
Interest rate (as a percent)				5.75%
Bank owned FHLBC stock			$ 3,700,000
Senior notes			44,297,000		$ 44,270,000
Debt Instrument, Term				10 years
Interest rate term				5 years
Total borrowings			$ 154,290,000		205,870,000
GCFC/ABC Bank
Borrowings
Interest rate (as a percent)			2.83%
FHLBC advance amount			$ 6,000,000
Subordinated Debt.						$ 6,600,000
Debt assumed			23,400,000
Debt Instrument, Variable Rate Base LIBOR [Member]
Borrowings
Basis points added to reference rate (as a percent)				385.00%
Securities Sold under Agreements to Repurchase [Member]
Borrowings
Carrying amount of securities secured			51,200,000		48,700,000
Fair value of the pledged collateral			$ 71,200,000		70,700,000
Number of customers having secured balances exceeding specified percentage of stockholders equity | item			0
Total borrowings			$ 51,236,000		48,693,000
Securities Sold under Agreements to Repurchase [Member] | Minimum [Member]
Borrowings
Threshold percentage of stockholders' equity			10.00%
Federal Home Loan Bank Advances [Member]
Borrowings
Borrowings at FHLBC as percentage of total assets			35.00%
Borrowings at FHLBC as percentage of book value of certain mortgage loans			60.00%
FHLBC advance amount			$ 6,400,000		48,500,000
Bank owned FHLBC stock			3,700,000
Fair value of securities collateralized			51,000,000
Principal balance of loans collateralized			568,300,000
Combined collateral value			481,600,000
Amount available for additional borrowings			344,300,000
Total borrowings			6,375,000		48,500,000
FHLB advances at 1.76% to 2.23%
Borrowings
FHLBC advance amount			$ 6,400,000
FHLB advances at 1.76% to 2.23% | Minimum [Member]
Borrowings
Interest rate (as a percent)			2.03%
FHLB advances at 1.76% to 2.23% | Maximum [Member]
Borrowings
Interest rate (as a percent)			2.23%
Notes Payable to Banks [Member]
Borrowings
Total borrowings			$ 26,609,000		6,673,000
Credit Facility [Member]
Borrowings
Proceeds from term note		$ 20,000,000
Debt Instrument, Term		360 days
Junior Subordinated Debt
Borrowings
Total borrowings			25,773,000		57,734,000
Senior Notes.
Borrowings
Senior notes			44,297,000		44,270,000
Debt issuance costs			$ 703,000		$ 730,000
Amortization period for deferred financing costs			10 years
Term note
Borrowings
Proceeds from term note	$ 20,000,000	$ 20,000,000
Debt term		3 years
Term note | Debt Instrument, Variable Rate Base LIBOR [Member]
Borrowings
Basis points added to reference rate (as a percent)		175.00%
Old Second Capital Trust I | Junior Subordinated Debt
Borrowings
Cash distribution rate of trust preferred securities (as a percent)		7.80%

Junior Subordinated Debentures

Junior Subordinated Debentures - Issuance (Details) - USD ($)	Mar. 31, 2020	Mar. 02, 2020	Feb. 24, 2020	Mar. 31, 2019	Apr. 30, 2007	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2016
Junior subordinated debentures
Interest rate (as a percent)									5.75%
Junior subordinated debentures	$ 25,773,000					$ 25,773,000		$ 57,734,000
Unamortized debt issuance costs				$ 12,000		$ 643,000
Old Second Capital Trust II [Member]
Junior subordinated debentures
Proceeds from sale of cumulative trust preferred securities					$ 25,000,000
Maturity Period						30 years
Amortization period						30 years
Old Second Capital Trust II [Member] | Debt Instrument, Redemption, Period One [Member]
Junior subordinated debentures
Cash distribution rate of trust preferred securities (as a percent)	4.40%						4.39%
Cash distribution fixed rate of trust preferred securities (as a percent)						6.77%
Old Second Capital Trust II [Member] | Debt Instrument, Redemption, Period Two [Member]
Junior subordinated debentures
Basis points added to cash distribution floating rate base (as a percent)						1.50%
Old Second Capital Trust II [Member] | Debt Instrument, Redemption, Period Two [Member] | Debt Instrument, Variable Rate Base LIBOR [Member]
Junior subordinated debentures
Cash distribution, floating rate base						three-month LIBOR
Term note
Junior subordinated debentures
Proceeds from term note		$ 20,000,000	$ 20,000,000
Junior Subordinated Debt
Junior subordinated debentures
Junior Subordinated Debentures issuance cost	$ 1,000					$ 1,000		$ 644,000
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
Amortization period		30 years
Redemption price per share		$ 10.13
Proceeds from term note		$ 33,000,000
Unamortized debt issuance costs		$ 635,000
Junior Subordinated Debt | Old Second Capital Trust II [Member]
Junior subordinated debentures
Junior subordinated debentures	$ 25,800,000					$ 25,800,000

Equity Compensation Plans - Opt

Equity Compensation Plans - Options (Details)	3 Months Ended
	Mar. 31, 2020USD ($)shares	Mar. 31, 2019USD ($)shares
Equity Compensation Plans
Total compensation cost | $	$ 735,000	$ 578,000
Granted (in shares)	0
2019 Plan
Equity Compensation Plans
Number of stock option grant awards outstanding | $	0
Exercised (in shares)	0
Shares
Exercised (in shares)	0
2014 Plan
Equity Compensation Plans
Number of shares authorized		600,000
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	1 Months Ended	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2020
Summary Of Stock Option Activity [Abstract]
Cash received from options exercised	$ 32
Stock based compensation	$ 573	$ 729
2014 Plan
Summary Of Stock Option Activity [Abstract]
Number of shares authorized	600,000
Number of shares issuable		341,985

Equity Compensation Plans - Res

Equity Compensation Plans - Restricted Stock and RSUs (Details) - Restricted Stock and Restricted Stock Units [Member] $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Mar. 31, 2020USD ($)$ / sharesshares	Mar. 31, 2020USD ($)$ / sharesshares
Changes in unvested awards
Nonvested at the beginning of the period (in shares) | shares		555,283
Granted (in shares) | shares	0	137,944
Vested (in shares) | shares		(119,452)
Nonvested at the end of the period (in shares) | shares	573,775	573,775
Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share) | $ / shares		$ 12.85
Granted (in dollars per share) | $ / shares		12.26
Vested (in dollars per share) | $ / shares		11
Nonvested at the end of the period (in dollars per share) | $ / shares	$ 13.09	$ 13.09
Additional information
Total unrecognized compensation cost of restricted awards | $	$ 4	$ 4
Expected weighted-average period for recognition of unrecognized compensation		2 years 1 month 6 days

Earnings Per Share - Reconcilia

Earnings Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2016
Basic earnings per share:
Weighted-average common shares outstanding		29,929,763	29,845,653
Net income	$ 8,468	$ 275	$ 8,468
Basic earnings per share (in dollars per share)		$ 0.01	$ 0.28
Diluted earnings per share:
Weighted-average common shares outstanding		29,929,763	29,845,653
Diluted average common shares outstanding		30,490,605	30,343,631
Net earnings available to common stockholders		$ 275	$ 8,468
Diluted earnings per share (in dollars per share)		$ 0.01	$ 0.28
Warrant term				10 years
Restricted Stock and Restricted Stock Units [Member]
Diluted earnings per share:
Dilutive effect of share-based payment awards (in shares)		560,842	497,978

Regulatory & Capital Matters (D

Regulatory & Capital Matters (Details) - USD ($)	1 Months Ended	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
Regulatory & Capital Matters
Tier 1 capital leverage ratio (as a percent)	10.57%	10.57%		11.93%
Risk-based capital ratio (as a percent)	13.09%	13.09%		14.53%
Payments of Dividends	$ 30,000,000
Phase out of impact of allowance for credit loss			$ 3,800,000
Allowance for credit loss Percentage annually		25.00%
Deferment of impact on rretained earnings	$ 5,200,000	$ 5,200,000
Percentage of allowance for credit loss		25.00%
Change in allowance for credit loss		$ 8,000,000
Subsidiaries [Member]
Regulatory & Capital Matters
Tier 1 capital leverage ratio (as a percent)	11.36%	11.36%		12.50%
Risk-based capital ratio (as a percent)	14.07%	14.07%		15.23%
Tier One leverage ratio, basis point decrease (as a percent)		1.14%
Risk-based capital ratio, basis point decrease (as a percent)		$ 1.16
Minimum [Member] | Subsidiaries [Member]
Regulatory & Capital Matters
Tier 1 capital leverage ratio (as a percent)	8.00%	8.00%
Risk-based capital ratio (as a percent)	12.00%	12.00%
Tier 1 capital leverage ratio, board-designated threshold	8.00%	8.00%
Total Capital Ratio, board-designated threshold (as a percent)	12.00%	12.00%

Regulatory & Capital Matters -

Regulatory & Capital Matters - Capital Levels and Industry Defined Regulatory Minimums (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Common equity tier 1 capital to risk weighted assets
Actual	$ 251,168	$ 251,477
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 162,044	$ 158,020
Common equity tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	10.85%	11.14%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	7.00%	7.00%
Total capital to risk weighted assets, Amount
Actual at period end	$ 303,182	$ 327,886
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 243,194	$ 236,944
Total capital to risk weighted assets, Ratio
Risk-based capital ratio (as a percent)	13.09%	14.53%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	10.50%	10.50%
Tier 1 capital to risk weighted assets, Amount
Actual	$ 276,168	$ 308,102
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 196,767	$ 191,858
Tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	11.93%	13.65%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	8.50%	8.50%
Tier 1 capital to average assets, Amount
Actual	$ 276,168	$ 308,102
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 104,510	$ 103,303
Tier 1 capital to average assets, Ratio
Tier 1 capital leverage ratio (as a percent)	10.57%	11.93%
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	$ 296,496	$ 322,496
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	161,014	157,315
Minimum Required to Be Well Capitalized	$ 149,513	$ 146,078
Common equity tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	12.89%	14.35%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	7.00%	7.00%
Minimum Required to Be Well Capitalized (as a percent)	6.50%	6.50%
Total capital to risk weighted assets, Amount
Actual at period end	$ 323,510	$ 342,280
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	241,425	235,978
Minimum Required to Be Well Capitalized	$ 229,929	$ 224,741
Total capital to risk weighted assets, Ratio
Risk-based capital ratio (as a percent)	14.07%	15.23%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	10.50%	10.50%
Minimum Required to Be Well Capitalized (as a percent)	10.00%	10.00%
Tier 1 capital to risk weighted assets, Amount
Actual	$ 296,496	$ 322,496
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	195,517	191,026
Minimum Required to Be Well Capitalized	$ 184,016	$ 179,789
Tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	12.89%	14.35%
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	8.50%	8.50%
Minimum Required to Be Well Capitalized (as a percent)	8.00%	8.00%
Tier 1 capital to average assets, Amount
Actual	$ 296,496	$ 322,496
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	104,400	103,199
Minimum Required to Be Well Capitalized	$ 130,500	$ 128,998
Tier 1 capital to average assets, Ratio
Tier 1 capital leverage ratio (as a percent)	11.36%	12.50%
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) - $ / shares	3 Months Ended
	Mar. 31, 2020	Sep. 30, 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%
Number of shares authorized		1,494,826
Number of share repurchased	312,723
Repurchase price	$ 7.06

Fair Value Measurements - Recur

Fair Value Measurements - Recurring (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Assets:
Securities available-for-sale	$ 449,694	$ 449,694	$ 484,648
Mortgage servicing rights	4,108		5,935
US Treasury Securities [Member]
Assets:
Securities available-for-sale	4,152		4,036
US Government Corporations and Agencies Securities [Member]
Assets:
Securities available-for-sale	7,723		8,337
Mortgage Backed Securities, Issued by US Government Agencies [Member]
Assets:
Securities available-for-sale	17,255
US States and Political Subdivisions Debt Securities [Member]
Assets and liabilities measured at fair value on a recurring basis
Purchases	6,100	$ 11,325
Assets:
Securities available-for-sale	255,095		249,175
Collateralized Mortgage Obligations [Member]
Assets:
Securities available-for-sale	53,403		57,984
Asset-backed Securities [Member]
Assets:
Securities available-for-sale	77,727		81,844
Collateralized loan obligations
Assets:
Securities available-for-sale	34,339		66,684
Fair Value, Inputs, Level 1 [Member]
Assets:
Securities available-for-sale	4,152		4,036
Fair Value, Inputs, Level 2 [Member]
Assets:
Securities available-for-sale	434,385		475,193
Loans held-for-sale	10,049		3,061
Other assets	11,115		2,771
Liabilities:
Other liabilities	16,795		5,921
Level 3
Assets:
Securities available-for-sale	11,157		5,419
Mortgage servicing rights	4,108		5,935
Level 3 | US States and Political Subdivisions Debt Securities [Member]
Assets:
Securities available-for-sale	11,200		19,600
Recurring
Assets:
Securities available-for-sale			8,337
Total financial assets	475,698		496,665
Liabilities:
Total	16,912		5,974
Recurring | Finite-Lived Intangible Assets [Member]
Assets:
Loans held-for-sale	10,049		3,061
Mortgage servicing rights	4,108		5,935
Recurring | Interest Rate Swap [Member]
Liabilities:
Other liabilities	16,912		5,974
Recurring | Interest Rate Swap [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Other assets	11,115		2,771
Recurring | Forward Contracts [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Other assets	732		250
Recurring | US Treasury Securities [Member]
Assets:
Securities available-for-sale			4,036
Recurring | US Treasury Securities [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	4,152
Recurring | US Government Corporations and Agencies Securities [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	7,723
Recurring | Mortgage Backed Securities, Issued by US Government Agencies [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	17,255		16,588
Recurring | US States and Political Subdivisions Debt Securities [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	255,095		249,175
Recurring | Collateralized Mortgage Obligations [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	53,403		57,984
Recurring | Asset-backed Securities [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	77,727		81,844
Recurring | Collateralized loan obligations | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	34,339		66,684
Recurring | Fair Value, Inputs, Level 1 [Member]
Assets:
Total financial assets	4,152		4,036
Recurring | Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member]
Assets:
Securities available-for-sale			4,036
Recurring | Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	4,152
Recurring | Fair Value, Inputs, Level 2 [Member]
Assets:
Securities available-for-sale			8,337
Total financial assets	456,281		481,275
Liabilities:
Total	16,912		5,974
Recurring | Fair Value, Inputs, Level 2 [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Loans held-for-sale	10,049		3,061
Recurring | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]
Liabilities:
Other liabilities	16,912		5,974
Recurring | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Other assets	11,115		2,771
Recurring | Fair Value, Inputs, Level 2 [Member] | Forward Contracts [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Other assets	732		250
Recurring | Fair Value, Inputs, Level 2 [Member] | US Government Corporations and Agencies Securities [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	7,723
Recurring | Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities, Issued by US Government Agencies [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	17,255		16,588
Recurring | Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	243,938		243,756
Recurring | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	53,403		57,984
Recurring | Fair Value, Inputs, Level 2 [Member] | Asset-backed Securities [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	77,727		81,844
Recurring | Fair Value, Inputs, Level 2 [Member] | Collateralized loan obligations | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	34,339		66,684
Recurring | Level 3
Assets:
Total financial assets	15,265		11,354
Recurring | Level 3 | Finite-Lived Intangible Assets [Member]
Assets:
Mortgage servicing rights	4,108		5,935
Recurring | Level 3 | US States and Political Subdivisions Debt Securities [Member] | Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	$ 11,157		$ 5,419

Fair Value Measurements - Chang

Fair Value Measurements - Changes in Level 3 (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
US States and Political Subdivisions Debt Securities [Member]
Changes in Level 3
Beginning balance	$ 5,419	$ 8,165
Total gains or losses
Included in earnings (or changes in net assets)		(8)
Included in other comprehensive income	(325)	171
Purchases, issuances, sales, and settlements
Purchases	6,100	11,325
Settlements	(31)	(97)
Ending balance	11,157	19,556
Changes in Level 3 (liabilities)
Included in earnings (or changes in net assets)	(6)
Mortgage Servicing Rights [Member]
Changes in Level 3
Beginning balance	5,935	7,357
Total gains or losses
Included in earnings (or changes in net assets)		(721)
Purchases, issuances, sales, and settlements
Issuances	307	177
Settlements	(275)	(98)
Ending balance	4,108	$ 6,715
Changes in Level 3 (liabilities)
Included in earnings (or changes in net assets)	$ (1,859)

Fair Value Measurements - Quant

Fair Value Measurements - Quantitative and Qualitative Information (Details) $ in Thousands	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Mar. 31, 2019USD ($)
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	$ 4,108	$ 5,935
Securities available-for-sale, at fair value	449,694	484,648	$ 449,694
Level 3
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	4,108	5,935
Securities available-for-sale, at fair value	11,157	5,419
US States and Political Subdivisions Debt Securities [Member]
Quantitative information about Level 3 fair value measurements
Securities available-for-sale, at fair value	255,095	249,175
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	11,200	19,600
Collateralized Mortgage Obligations [Member]
Quantitative information about Level 3 fair value measurements
Securities available-for-sale, at fair value	$ 53,403	$ 57,984
Measurement Input, Discount Rate | Mortgage Servicing Rights [Member] | Level 3 | Minimum [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	10	10
Measurement Input, Discount Rate | Mortgage Servicing Rights [Member] | Level 3 | Maximum [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	17	58.8
Measurement Input, Discount Rate | Mortgage Servicing Rights [Member] | Level 3 | Weighted Average [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	10.1	10.1
Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights [Member] | Level 3 | Minimum [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	7	0
Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights [Member] | Level 3 | Maximum [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	71.8	69
Measurement Input, Constant Prepayment Rate | Mortgage Servicing Rights [Member] | Level 3 | Weighted Average [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	20.7	14.1
Recurring
Quantitative information about Level 3 fair value measurements
Securities available-for-sale, at fair value		$ 8,337

Fair Value Measurements - Nonre

Fair Value Measurements - Nonrecurring (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Assets and liabilities measured at fair value
Carrying value of other real estate owned	$ 5,049	$ 5,004
Impaired Loans [Member]
Assets and liabilities measured at fair value
Valuation allowance		8,600
Fair Value, Measurements, Nonrecurring [Member]
Assets and liabilities measured at fair value
Total	28,485	12,439
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member]
Assets and liabilities measured at fair value
Total	23,436	7,435
Valuation allowance	1,900	1,200
Increase (decrease) of specific allocations within the provision for loan losses	732	783,000,000
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Reported Value Measurement [Member]
Assets and liabilities measured at fair value
Total	25,300
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member]
Assets and liabilities measured at fair value
Total	5,049	5,004
Carrying value of other real estate owned	5,000	5,000
Outstanding balance	12,300	12,600
OREO Valuation allowance	6,400	6,700
OREO participations	937,000,000	937,000
Fair Value, Measurements, Nonrecurring [Member] | Level 3
Assets and liabilities measured at fair value
Total	28,485	12,439
Fair Value, Measurements, Nonrecurring [Member] | Level 3 | Impaired Loans [Member]
Assets and liabilities measured at fair value
Total	23,436	7,435
Fair Value, Measurements, Nonrecurring [Member] | Level 3 | Other Real Estate Owned [Member]
Assets and liabilities measured at fair value
Total	$ 5,049	$ 5,004

Fair Values of Financial Inst_3

Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
Financial assets:
Cash and due from banks	$ 27,627	$ 34,096
Interest bearing deposits with financial institutions	45,511	16,536
Securities available-for-sale	449,694	484,648	$ 449,694
FHLBC and FRBC Stock	9,917	9,917
Bank-owned life insurance	61,714	61,763
Financial liabilities:
Noninterest bearing deposits	702,598	669,795
Other short-term borrowings	6,375	48,500
Junior subordinated debentures	25,773	57,734
Reported Value Measurement [Member]
Financial assets:
Cash and due from banks	27,627	34,096
Interest bearing deposits with financial institutions	45,511	16,536
Securities available-for-sale	449,694	484,648
FHLBC and FRBC Stock	9,917	9,917
Loans held for sale	10,049	3,061
Net loans	1,927,159	1,911,023
Interest rate swap agreements	11,115	2,771
Accrued interest receivable	9,392	9,697
Financial liabilities:
Noninterest bearing deposits	702,598	669,795
Interest bearing deposits	1,493,044	1,456,954
Securities sold under repurchase agreements	51,236	48,693
Other short-term borrowings	6,375	48,500
Junior subordinated debentures	25,773	57,734
Senior notes	44,297	44,270
Note payable and other borrowings	26,609	6,673
Interest rate swap	16,795	5,921
Borrowing interest payable	1,728	1,079
Estimate of Fair Value Measurement [Member]
Financial assets:
Cash and due from banks	27,627	34,096
Interest bearing deposits with financial institutions	45,511	16,536
Securities available-for-sale	449,694	484,648
FHLBC and FRBC Stock	9,917	9,917
Loans held for sale	10,049	3,061
Net loans	1,947,974	1,915,531
Interest rate swap agreements	11,115	2,771
Accrued interest receivable	9,392	9,697
Financial liabilities:
Noninterest bearing deposits	702,598	669,975
Interest bearing deposits	1,496,968	1,457,832
Securities sold under repurchase agreements	51,236	48,693
Other short-term borrowings	6,375	48,500
Junior subordinated debentures	9,257	51,188
Senior notes	42,689	46,269
Note payable and other borrowings	27,003	7,003
Interest rate swap	16,795	5,921
Borrowing interest payable	1,728	1,079
Fair Value, Inputs, Level 1 [Member]
Financial assets:
Cash and due from banks	27,627	34,096
Interest bearing deposits with financial institutions	45,511	16,536
Securities available-for-sale	4,152	4,036
Financial liabilities:
Noninterest bearing deposits	702,598	669,975
Junior subordinated debentures		33,614
Senior notes	42,689	46,269
Borrowing interest payable	4
Fair Value, Inputs, Level 2 [Member]
Financial assets:
Securities available-for-sale	434,385	475,193
FHLBC and FRBC Stock	9,917	9,917
Loans held for sale	10,049	3,061
Interest rate swap agreements	11,115	2,771
Accrued interest receivable	9,392	9,697
Financial liabilities:
Interest bearing deposits	1,496,968	1,457,832
Securities sold under repurchase agreements	51,236	48,693
Other short-term borrowings	6,375	48,500
Junior subordinated debentures	9,257	17,574
Note payable and other borrowings	27,003	7,003
Interest rate swap	16,795	5,921
Borrowing interest payable	1,724	1,079
Level 3
Financial assets:
Securities available-for-sale	11,157	5,419
Net loans	$ 1,947,974	$ 1,915,531

Derivatives, Hedging Activiti_3

Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Fair Value of Derivatives (Details)	1 Months Ended	3 Months Ended	12 Months Ended
	Dec. 31, 2019USD ($)item	Mar. 31, 2020USD ($)item	Dec. 31, 2019USD ($)item
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Loan pool hedge	$ 50,000,000		$ 50,000,000
Term of interest rate risk cash flow hedge	5 years
Derivative assets designated as hedging instruments, fair value		$ 2,838,000
Weighted average maturity			5 years 10 months 24 days
Designated as Hedging Instrument [Member]
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Derivative liabilities designated as hedging instruments, fair value		$ 8,518,000
Designated as Hedging Instrument [Member] | Interest Rate Products
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Derivative, number of transactions | item	2	2	2
Notional Amount	$ 75,774,000	$ 75,774,000	$ 75,774,000
Derivative assets designated as hedging instruments, classified in other assets		2,838,000
Derivated liabilities designated as hedging instruments, classified in other liabilities	3,150,000	8,518,000	3,150,000
Derivative liabilities designated as hedging instruments, fair value	3,150,000		3,150,000
Designated as Hedging Instrument [Member] | Interest Rate Products | OSBC Affiliates
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Notional Amount	25,800,000		25,800,000
Not Designated as Hedging Instrument [Member]
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Derivative assets not designated as hedging instruments, fair value		9,009,000
Total Derivative liabilities not designated as hedging instruments, fair value		$ 8,395,000
Not Designated as Hedging Instrument [Member] | Interest Rate Products
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Investment securities pledged with financial institutions, dollars	$ 11,000,000		$ 11,000,000
Not Designated as Hedging Instrument [Member] | Interest Rate Products | Commercial Loan Customers
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Derivative, number of transactions | item	25	350	25
Notional Amount	$ 177,872,000	$ 193,418,000	$ 177,872,000
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets	2,771,000	8,277,000	2,771,000
Interest rate derivatives, derivative not designated as hedging instruments, classified in other liabilities	2,771,000	$ 8,277,000	$ 2,771,000
Weighted average maturity		6 years	5 years 10 months 24 days
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Cash collateral pledged with financial institutions, dollars	$ 114,000	$ 2,000,000	$ 114,000
Investment securities pledged with financial institutions, dollars		$ 14,600,000
Number of correspondent financial institutions where investment securities are pledged | item		1	1
Number of financial institutions where investment securities are required to be pledged | item		1	2
Not Designated as Hedging Instrument [Member] | Interest Rate Lock Commitments and Forward Contracts
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Derivative, number of transactions | item	4	46	4
Notional Amount	$ 28,176,000	$ 80,500,000	$ 28,176,000
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets		$ 732,000
Interest rate derivatives, derivative not designated as hedging instruments, classified in other liabilities	$ 53,000		$ 53,000
Not Designated as Hedging Instrument [Member] | Interest Rate Lock Commitments and Forward Contracts | Commercial Loan Customers
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Derivative, number of transactions | item	87		87
Notional Amount	$ 23,667,000		$ 23,667,000
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets	250,000		250,000
Not Designated as Hedging Instrument [Member] | Other Contracts
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Derivative, number of transactions | item		4
Notional Amount		$ 28,052,000
Derivative assets designated as hedging instruments, classified in other assets	3,021,000		3,021,000
Derivated liabilities designated as hedging instruments, classified in other liabilities	$ 2,824,000		$ 2,824,000
Interest rate derivatives, derivative not designated as hedging instruments, classified in other liabilities		118,000
Interest Income [Member]
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Amount to be reclassified as a reduction to interest expense during the next twelve months		625,000
Interest Expense [Member]
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Amount to be reclassified as a reduction to interest expense during the next twelve months		$ 600,000

Derivatives, Hedging Activiti_4

Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Effect of Fair Value (Details) - USD ($)	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income	$ 4,100,000		$ 800,000
Interest Income (Expense)
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income	$ (86,000)
Amount of Gain or (Loss) Recognized in Income on Derivative		$ (5,000)

Derivatives, Hedging Activiti_5

Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Commitments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Company's contractual commitments due to letters of credit
Total letters of credit	$ 16,418	$ 16,801
Fixed [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	900	910
Variable [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	15,518	15,891
Commitments to Extend Credit to Borrowers [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	16,351	16,734
Commitments to Extend Credit to Borrowers [Member] | Fixed [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	900	910
Commitments to Extend Credit to Borrowers [Member] | Variable [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	15,451	15,824
Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	9,710	9,951
Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit [Member] | Fixed [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	329	339
Commitments to Extend Credit to Borrowers [Member] | Financial Standby Letter of Credit [Member] | Variable [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	9,381	9,612
Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	6,641	6,783
Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee [Member] | Fixed [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	571	571
Commitments to Extend Credit to Borrowers [Member] | Performance Guarantee [Member] | Variable [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	6,070	6,212
Commitments to Extend Credit Nonborrowers [Member] | Performance Guarantee [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	67	67
Commitments to Extend Credit Nonborrowers [Member] | Performance Guarantee [Member] | Variable [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	67	67
Letter of Credit [Member] | Unused lines of Credit [Member]
Company's contractual commitments due to letters of credit
Loan commitments	439,482	431,468
Letter of Credit [Member] | Unused lines of Credit [Member] | Fixed [Member]
Company's contractual commitments due to letters of credit
Loan commitments	112,537	111,348
Letter of Credit [Member] | Unused lines of Credit [Member] | Variable [Member]
Company's contractual commitments due to letters of credit
Loan commitments	$ 326,945	$ 320,120