Old Second Bancorp (OSBC) 10-Q6 Nov 202020 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Sep. 30, 2020	Nov. 04, 2020
Document and Entity Information
Document Type		10-Q
Document Quarterly Report		true
Document Transition Report		false
Document Period End Date		Sep. 30, 2020
Entity File Number		0-10537
Entity Registrant Name		OLD SECOND BANCORP INC
Entity Incorporation, State or Country Code		DE
Entity Tax Identification Number		36-3143493
Entity Address, Address Line One		37 South River Street
Entity Address, City or Town		Aurora
Entity Address, State or Province		IL
Entity Address, Postal Zip Code		60507
City Area Code		(630)
Local Phone Number		892-0202
Title of 12(b) Security		Common Stock
Trading Symbol		OSBC
Security Exchange Name		NASDAQ
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			29,355,022
Current Fiscal Year End Date		--12-31
Document Fiscal Year Focus		2020
Document Fiscal Period Focus		Q3
Entity Central Index Key	0000357173
Amendment Flag		false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 29,489	$ 34,096
Interest bearing deposits with financial institutions	283,651	16,536
Cash and cash equivalents	313,140	50,632
Securities available-for-sale, at fair value	448,421	484,648
Federal Home Loan Bank Chicago ("FHLBC") and Federal Reserve Bank Chicago ("FRBC") stock	9,917	9,917
Loans held-for-sale	10,229	3,061
Loans	2,030,327	1,930,812
Less: allowance for loan losses	32,918	19,789
Net loans	1,997,409	1,911,023
Premises and equipment, net	44,914	44,354
Other real estate owned	2,686	5,004
Mortgage servicing rights, net	5,010	5,935
Goodwill and core deposit intangible	20,901	21,275
Bank-owned life insurance (BOLI)	62,222	61,763
Deferred tax assets, net	9,626	11,459
Other assets	50,349	26,474
Total assets	2,974,824	2,635,545
Deposits:
Noninterest bearing demand	889,085	669,795
Interest bearing:
Savings, NOW, and money market	1,185,731	1,015,285
Time	404,427	441,669
Total deposits	2,479,243	2,126,749
Securities sold under repurchase agreements	59,268	48,693
Other short-term borrowings	6,125	48,500
Junior subordinated debentures	25,773	57,734
Senior notes	44,349	44,270
Notes payable and other borrowings	24,469	6,673
Other liabilities	39,329	25,062
Total liabilities	2,678,556	2,357,681
Stockholders' Equity
Common stock	34,957	34,854
Additional paid-in capital	121,746	120,657
Retained earnings	228,825	213,723
Accumulated other comprehensive (loss) income	11,044	4,562
Treasury stock	(100,304)	(95,932)
Total stockholders' equity	296,268	277,864
Total liabilities and stockholders' equity	$ 2,974,824	$ 2,635,545

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 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	29,451,585	29,931,809
Treasury stock, Shares	5,505,799	4,921,948

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest and Dividend Income
Loans, including fees	$ 21,980	$ 25,109	$ 67,924	$ 74,132
Loans held-for-sale	95	47	241	100
Securities:
Taxable	1,458	2,296	5,315	6,933
Tax exempt	1,327	1,719	4,178	5,958
Dividends from FHLBC and FRBC stock	118	154	366	459
Interest bearing deposits with financial institutions	68	119	185	344
Total interest and dividend income	25,046	29,444	78,209	87,926
Interest Expense
Savings, NOW, and money market deposits	299	724	1,319	2,254
Time deposits	1,084	1,672	4,292	4,931
Securities sold under repurchase agreements	28	135	167	431
Other short-term borrowings	24	429	167	1,611
Junior subordinated debentures	285	933	1,932	2,791
Senior notes	673	682	2,019	2,026
Notes payable and other borrowings	144	89	439	312
Total interest expense	2,537	4,664	10,335	14,356
Net interest and dividend income	22,509	24,780	67,874	73,570
Provision for credit losses	300	550	10,413	1,450
Net interest and dividend income after provision for loan and lease losses	22,209	24,230	57,461	72,120
Noninterest Income
Mortgage servicing rights mark to market loss	(160)	(946)	(2,739)	(2,902)
Net gain on sales of mortgage loans	5,246	2,074	12,123	3,999
Securities gains (losses), net	(1)	3,463	(25)	4,476
Change in cash surrender value of BOLI	459	267	942	1,045
Death benefit realized on BOLI	(2)		57
Debit card interchange income	1,499	1,595	4,097	4,433
Other income	803	988	2,663	2,682
Total noninterest income	11,685	11,933	28,702	26,558
Noninterest Expense
Salaries and employee benefits	12,586	12,062	36,846	35,261
Occupancy, furniture and equipment	2,003	2,235	6,239	6,149
Computer and data processing	1,226	1,490	3,808	4,346
FDIC Insurance	191	(114)	403	176
General bank insurance	281	270	764	756
Amortization of core deposit intangible	122	157	374	410
Advertising expense	62	360	228	975
Debit card interchange expense	566	531	1,612	1,360
Legal fees	169	111	476	480
Other real estate expense, net	125	26	505	324
Other expense	2,935	2,826	8,909	9,037
Total noninterest expense	20,266	19,954	60,164	59,274
Income before income taxes	13,628	16,209	25,999	39,404
Provision for income taxes	3,363	4,036	6,221	9,485
Net income available to common stockholders	$ 10,265	$ 12,173	$ 19,778	$ 29,919
Basic earnings per share (in dollars per share)	$ 0.35	$ 0.41	$ 0.67	$ 1
Diluted earnings per share (in dollars per share)	0.34	0.40	0.65	0.98
Dividends declared per share (in dollars per share)	$ 0.01	$ 0.01	$ 0.03	$ 0.03
Deposit Account
Noninterest Income
Service charges on deposits	$ 1,322	$ 2,020	$ 4,168	$ 5,841
Trust Income
Noninterest Income
Service charges on deposits	1,506	1,730	4,702	4,955
Bank Servicing
Noninterest Income
Service charges on deposits	521	460	1,447	1,408
Secondary mortgage fees
Noninterest Income
Service charges on deposits	$ 492	$ 282	$ 1,267	$ 621

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Consolidated Statements of Comprehensive Income
Net income	$ 10,265	$ 12,173	$ 19,778	$ 29,919
Unrealized holding (losses) gains on available-for-sale securities arising during the period	5,812	5,824	10,455	23,661
Related tax benefit (expense)	(1,633)	(1,638)	(2,932)	(6,657)
Holding (losses) gains after tax on available-for-sale securities	4,179	4,186	7,523	17,004
Less: Reclassification adjustment for the net gains (losses) realized during the period
Net realized gains (losses)	(1)	3,463	(25)	4,476
Related tax (expense) benefit		(973)	7	(1,257)
Net realized gains (losses) after tax	(1)	2,490	(18)	3,219
Other comprehensive (loss) income on available-for-sale securities	4,180	1,696	7,541	13,785
Changes in fair value of derivatives used for cashflow hedges	615	(1,996)	(1,472)	(4,638)
Related tax (expense) benefit	(173)	559	413	1,303
Other comprehensive income on cashflow hedges	442	(1,437)	(1,059)	(3,335)
Total other comprehensive (loss) income	4,622	259	6,482	10,450
Total comprehensive income	$ 14,887	$ 12,432	$ 26,260	$ 40,369

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities
Net income	$ 12,173	$ 19,778	$ 29,919
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Net premium amortization/discount (accretion) on securities		1,712	2,128
Securities (gains) losses, net	(3,463)	25	(4,476)
Provision for credit losses	550	10,413	1,450
Originations of loans held-for-sale		(296,388)	(126,929)
Proceeds from sales of loans held-for-sale		300,045	127,455
Net gain on sales of mortgage loans	(2,074)	(12,123)	(3,999)
Change in fair value of mortgage servicing rights	946	2,739	2,902
Net discount / premium from (accretion) amortization on loans		(841)	(1,052)
Change in cash surrender value of BOLI	267	942	1,045
Net gains on sale of other real estate owned	(104)	(188)	(254)
Provision for other real estate owned valuation losses	203	264	399
Depreciation of fixed assets and amortization of leasehold improvements		2,075	1,869
Net (gains) / losses on disposal and transfer of fixed assets			(32)
Amortization of core deposit intangible	157	374	410
Change in current income taxes receivable		(781)	3,319
Provision for deferred tax expense		(693)	4,493
Change in accrued interest receivable and other assets		(19,144)	(7,441)
Accretion of purchase accounting adjustment on time deposits			(38)
Amortization of purchase accounting adjustment on notes payable and other borrowings		25	75
Amortization of junior subordinated debentures issuance costs		643	36
Amortization of senior notes issuance costs		79	86
Change in accrued interest payable and other liabilities		8,060	6,366
Stock based compensation		1,623	1,905
Net cash provided by operating activities		16,755	37,546
Cash flows from investing activities
Proceeds from maturities and calls including pay down of securities available-for-sale		41,645	32,631
Proceeds from sales of securities available-for-sale	57,228	18,006	177,824
Purchases of securities available-for-sale		(14,681)	(136,096)
Net proceeds from sales of FHLBC stock			2,722
Net change in loans		(100,370)	(2,833)
Proceeds from claims on BOLI		483
Proceeds from sales of other real estate owned, net of participation purchase		3,140	2,644
Proceeds from disposition of premises and equipment			32
Net purchases of premises and equipment		(2,635)	(2,330)
Net cash provided by investing activities		(54,412)	74,594
Cash flows from financing activities
Net change in deposits		352,494	(42,144)
Net change in securities sold under repurchase agreements		10,575	2,238
Net change in other short-term borrowings		(42,375)	(65,500)
Redemption of junior subordinated debentures		(32,604)
Issuance of term note		20,000
Repayment of term note		(2,000)
Net change in notes payable and other borrowings		(229)	(6,598)
Proceeds from exercise of stock options			32
Dividends paid common stock		(893)	(896)
Purchase of treasury stock		(4,803)	(470)
Net cash used in financing activities		300,165	(113,338)
Net change in cash and cash equivalents		262,508	(1,198)
Cash and cash equivalents at beginning of period		50,632	55,235
Cash and cash equivalents at end of period	$ 54,037	$ 313,140	$ 54,037

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]Cumulative Effect, Period of Adoption, Adjustment [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock	Cumulative Effect, Period of Adoption, Adjustment [Member]	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				29,919				29,919
Other comprehensive income, net of tax					10,450			10,450
Dividends declared and paid				(896)				(896)
Vesting of restricted stock	103	(389)				286
Stock options exercised	2	7				23		32
Stock warrants exercised		(313)				313
Stock based compensation		1,905						1,905
Purchase of treasury stock						(470)		(470)
Balance at Sep. 30, 2019	34,825	120,291		204,486	6,371	(95,952)		270,021
Balance at Jun. 30, 2019	34,825	119,762		192,612	6,112	(96,047)		257,264
Increase (Decrease) in Stockholders' Equity
Net income				12,173				12,173
Other comprehensive income, net of tax					259			259
Dividends declared and paid				(299)				(299)
Vesting of restricted stock		(135)				135
Stock based compensation		664						664
Purchase of treasury stock						(40)		(40)
Balance at Sep. 30, 2019	34,825	120,291		204,486	6,371	(95,952)		270,021
Balance at Dec. 31, 2019	34,854	120,657		213,723	4,562	(95,932)		277,864
Increase (Decrease) in Stockholders' Equity
Net income				19,778				19,778
Other comprehensive income, net of tax					6,482			6,482
Dividends declared and paid				(893)				(893)
Vesting of restricted stock	103	(534)				431
Stock based compensation		1,623						1,623
Purchase of treasury stock from taxes withheld on stock awards						(423)		(423)
Purchase of treasury stock						(4,380)		(4,380)
Balance at Sep. 30, 2020	34,957	121,746	$ (3,783)	228,825	11,044	(100,304)	$ (3,783)	296,268
Balance at Jun. 30, 2020	34,957	121,437		218,856	6,422	(99,156)		282,516
Increase (Decrease) in Stockholders' Equity
Net income				10,265				10,265
Other comprehensive income, net of tax					4,622			4,622
Dividends declared and paid				(296)				(296)
Stock based compensation		309						309
Purchase of treasury stock						(1,148)		(1,148)
Balance at Sep. 30, 2020	$ 34,957	$ 121,746	$ (3,783)	$ 228,825	$ 11,044	$ (100,304)	$ (3,783)	$ 296,268

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	$ 282,516	$ 257,264	$ 277,864	$ 229,081
Other comprehensive income, net of tax	4,622	259	6,482	10,450
Balance	$ 296,268	$ 270,021	$ 296,268	$ 270,021
Dividend declared and paid (per share)	$ 0.01	$ 0.01	$ 0.03	$ 0.03
Accumulated Other Comprehensive Income (Loss) [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	$ 6,422	$ 6,112	$ 4,562	$ (4,079)
Other comprehensive income, net of tax	4,622	259	6,482	10,450
Balance	11,044	6,371	11,044	6,371
Accumulated Unrealized Loss on Securities Available-for-Sale
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	10,188	8,051	6,827	(4,038)
Other comprehensive income, net of tax	4,180	1,696	7,541	13,785
Balance	14,368	9,747	14,368	9,747
Accumulated Unrealized Loss on Derivative Instruments
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	(3,766)	(1,939)	(2,265)	(41)
Other comprehensive income, net of tax	442	(1,437)	(1,059)	(3,335)
Balance	$ (3,324)	$ (3,376)	$ (3,324)	$ (3,376)

Basis of Presentation and Chang

Basis of Presentation and Changes in Significant Accounting Policies	9 Months Ended
	Sep. 30, 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 September 30, 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, dollar 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) 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 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 of $8.0 million was recorded, comprised of $5.2 million of ACL related to loans and leases and $2.5 million of ACL related to unfunded commitments, based on the 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 $2.1 million during the second quarter of 2020, comprised of $1.4 million of ACL related to loans and leases, and $734,000 of ACL related to unfunded commitments. We recorded a provision for credit losses of $300,000 during the third quarter of 2020, comprised of $1.3 million of ACL related to loans and leases, and a $980,000 reversal of ACL related to unfunded commitments due to a reduction in the funding rate assumptions based on analysis of the twelve month utilization rate on commercial 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. Allowance for Credit Losses The 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 maturity), 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, we used an identified peer group 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, the Company determined had experienced a more-than-insignificant deterioration in credit quality since origination. The Company records acquired PCD loans by adding the expected credit losses (i.e., the ACL) to the purchase price of the financial assets rather than recording it through the provision for credit losses in the income statement; thus, the sum of the loans’ purchase price and initial ALLL estimate represents the initial amortized cost basis. The difference between the initial amortized cost basis and the unpaid principal balance is the non-credit discount or premium. Subsequent changes in the ACL on PCD loans is recognized through the provision for credit losses. The non-credit discount or premium is accreted or amortized into interest income over the remaining life of the PCD loan on a level-yield basis. In accordance with the transition requirements within the CECL standard, the Company’s purchased credit impaired loans (“PCI loans”) are now treated as PCD loans. Before January 1, 2020, PCI loans that met the definition of nonperforming loans were excluded from the Company’s nonperforming disclosures, as long as their cash flows and the timing of such cash flows continued to be estimable and probable of collection. As a result of CECL implementation on January 1, 2020, PCD loans that meet the definition of nonperforming loans are now included in the Company’s nonperforming disclosures. The qualitative factors applied to each ● 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 individually review those loans that have collateral dependency or are nonperforming. 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 The coronavirus (COVID-19) pandemic, which was declared a national emergency in the United States in March 2020, continues to create extensive disruptions to the global economy and financial markets and to businesses and the lives of individuals throughout the world. In particular, the COVID-19 pandemic has severely restricted the level of economic activity in the Company’s markets. Federal and state governments have taken, and may continue to take, unprecedented actions to contain the spread of the disease, including quarantines, travel bans, shelter-in-place orders, closures of businesses and schools, fiscal stimulus, and legislation designed to deliver monetary aid and other relief to businesses and individuals impacted by the pandemic. Although in various locations certain activity restrictions have been relaxed and businesses and schools have reopened with some level of success, in many states and localities the number of individuals diagnosed with COVID-19 has increased significantly, which may cause a freezing or, in certain cases, a reversal of previously announced relaxation of activity restrictions and may prompt the need for additional aid and other forms of relief. The impact of the COVID-19 pandemic is fluid and continues to evolve. The unprecedented and rapid spread of COVID-19 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 bank equity market valuations and significant volatility and disruption in financial markets. 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, and declining further to 0.65% as of June 30, 2020. 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, possibly materially, an adverse effect on the Company’s business, financial condition 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 September 30, 2020, our consolidated balance sheet included goodwill of $18.6 million. For each quarter end 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 from the latter half of March through the third quarter, specifically, the 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 September 30, 2020. 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 October 19, 2020, the Company’s Board of Directors declared a cash dividend of $0.01 per share payable on November 9, 2020, to stockholders of record as of October 30, 2020; dividends of $295,000 are scheduled to be paid to stockholders on November 9, 2020.

Acquisitions

Acquisitions	9 Months Ended
Acquisitions	Sep. 30, 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	9 Months Ended
Securities	Sep. 30, 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 September 30, 2020, and December 31, 2019. FRBC stock was recorded at $6.2 million at September 30, 2020, and December 31, 2019. The following tables summarize the amortized cost and fair value of the securities portfolio at September 30, 2020, and December 31, 2019, and the corresponding amounts of gross unrealized gains and losses: Gross Gross Amortized Unrealized Unrealized Fair September 30, 2020 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 4,013 $ 121 $ - $ 4,134 U.S. government agencies 7,169 - (164) 7,005 U.S. government agencies mortgage-backed 17,056 1,165 (2) 18,219 States and political subdivisions 232,416 18,316 (955) 249,777 Collateralized mortgage obligations 54,597 2,839 (423) 57,013 Asset-backed securities 81,986 905 (1,306) 81,585 Collateralized loan obligations 31,202 19 (533) 30,688 Total securities available-for-sale $ 428,439 $ 23,365 $ (3,383) $ 448,421 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 $2.6 million and $3.2 million at September 30, 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 September 30, 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 $ 413 2.01 % $ 415 Due after one year through five years 6,056 2.11 6,309 Due after five years through ten years 28,014 2.31 28,993 Due after ten years 209,115 3.03 225,199 243,598 2.92 260,916 Mortgage-backed and collateralized mortgage obligations 71,653 3.08 75,232 Asset-backed securities 81,986 1.51 81,585 Collateralized loan obligations 31,202 2.12 30,688 Total securities available-for-sale $ 428,439 2.62 % $ 448,421 At September 30, 2020, the Company’s investments included $55.9 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 $5.1 million, or 9.00% of outstanding principal. At September 30, 2020, the Company had invested in securities issued from one originator that individually amounted to over 10% of the Company’s stockholders’ equity. Information regarding this issuer and the value of the securities issued follows: September 30, 2020 Amortized Fair Issuer Cost Value Towd Point Mortgage Trust $ 33,242 $ 35,477 Securities with unrealized losses with no corresponding allowance for credit losses at September 30, 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 September 30, 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 $ 164 $ 7,005 4 $ 164 $ 7,005 U.S. government agencies mortgage-backed 1 2 260 - - - 1 2 260 States and political subdivisions - - - 1 955 3,872 1 955 3,872 Collateralized mortgage obligations 4 421 8,027 1 2 279 5 423 8,306 Asset-backed securities 5 425 22,603 3 881 33,069 8 1,306 55,672 Collateralized loan obligations 1 123 7,376 4 410 21,245 5 533 28,621 Total securities available-for-sale 11 $ 971 $ 38,266 13 $ 2,412 $ 65,470 24 $ 3,383 $ 103,736 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 As required upon the adoption of ASU 2016-13, 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. Our assessment included a review of the unrealized loss for each security issuance held; the financial condition and near-term prospects of the issuer, including external credit ratings and recent downgrades; and our 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 September 30, 2020, as there was no credit quality deterioration noted. Therefore, no provision for credit losses on securities was recognized for the third quarter end. The following table presents net realized gains (losses) on securities available-for-sale for the three and nine months ended September 30, 2020 and 2019. Three Months Ended Nine Months Ended September 30, September 30, Securities available-for-sale 2020 2019 2020 2019 Proceeds from sales of securities $ - $ 57,228 $ 18,006 $ 177,824 Gross realized gains on securities $ - $ 3,841 $ 17 $ 5,432 Gross realized losses on securities (1) (378) (42) (956) Net realized (losses) gains $ (1) $ 3,463 $ (25) $ 4,476 Income tax (expense) benefit on net realized gains (losses) $ - $ (973) $ 7 $ (1,257) Effective tax rate applied 0.0 % 28.1 % 28.0 % 28.1 % Securities valued at $353.2 million as of September 30, 2020, an increase 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	9 Months Ended
Loans and Allowance for Credit Losses on Loans	Sep. 30, 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: September 30, 2020 December 31, 2019 Commercial $ 436,277 $ 332,842 Leases 133,676 119,751 Commercial real estate - Investor 548,970 520,095 Commercial real estate - Owner occupied 335,978 345,504 Construction 91,856 69,617 Residential real estate - Investor 61,923 71,105 Residential real estate - Owner occupied 114,283 136,023 Multifamily 188,398 189,773 HELOC 85,882 91,605 HELOC - Purchased 22,312 31,852 Other 1 10,772 12,258 Total loans, excluding deferred loan costs and PCI loans 2 2,030,327 1,920,425 Net deferred loan costs - 1,786 Total loans, excluding PCI loans 2 2,030,327 1,922,211 PCI loans - 8,601 Total loans, including deferred loan costs and PCI loans 2 $ 2,030,327 $ 1,930,812 Allowance for credit losses on loans (32,918) (19,789) Net loans 3 $ 1,997,409 $ 1,911,023 1 The “Other” segment for 2020 includes consumer and overdrafts in this table and in subsequent tables within Note 4 - Loans and Allowance for Credit Losses on Loans. 2 As noted in the paragraph below, for periods before the Company’s adoption of CECL on January 1, 2020, PCI loans and their related deferred loan costs (now PCD loans) were excluded from nonperforming loan disclosures and were therefore separately reported. After the adoption of CECL, all PCD loans are now included within each relevant loan type and are not separately reported as PCI loans, because such loans are now included within the Company’s nonperforming loan disclosures, if such loans otherwise meet the definition of a nonperforming loan. 3 Excludes accrued interest receivable of $7.1 million and $6.5 million at September 30, 2020 and December 31, 2019, respectively, that is recorded in other assets on the consolidated balance sheet. Purchased credit deteriorated loans, or PCD loans, are purchased loans that, as of the date of acquisition, the Company determined had experienced a more-than-insignificant deterioration in credit quality since origination. Before the Company adopted CECL on January 1, 2020, PCD loans were referred to as purchased credit impaired loans, or PCI loans, and such PCI loans and their related deferred loan costs were excluded from the Company’s nonperforming loan disclosures, as long as the cash flows on such loans and the timing of such cash flows continued to be estimable and probable of collection. However, after the Company adopted CECL on January 1, 2020, PCD loans and their related deferred loan costs are now included in the Company’s nonperforming loan disclosures, if such loans otherwise meet the definition of a nonperforming loan. 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. Although the Bank makes loans primarily 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. The real estate related categories listed above represent 71.4% and 75.4% of the portfolio at September 30, 2020, and December 31, 2019, respectively, and include a mix of owner and non-owner occupied, residential, construction and multifamily loans. The following table presents the collateral dependent loans and the related ACL allocated by segment of loans as of September 30, 2020: Accounts ACL September 30, 2020 Real Estate Receivable Equipment Other Total Allocation Commercial $ - $ 1,543 $ 64 $ - $ 1,607 $ 65 Leases - - 3,744 - 3,744 911 Commercial real estate - Investor 4,580 - - - 4,580 92 Commercial real estate - Owner occupied 10,846 - - - 10,846 198 Construction 1,883 - - - 1,883 944 Residential real estate - Investor 935 - - - 935 - Residential real estate - Owner occupied 3,559 - - - 3,559 11 Multifamily 2,305 - - - 2,305 384 HELOC 1,047 - - - 1,047 96 HELOC - Purchased - - - - - - Other - - - 10 10 6 Total $ 25,155 $ 1,543 $ 3,808 $ 10 $ 30,516 $ 2,707 The following table presents the activity in the allowance for credit losses (“ACL”) for the three and nine months ended September 30, 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 September 30, 2020 Commercial $ 2,292 $ - $ 98 $ 5 $ 12 $ 2,397 Leases 2,012 - 1,965 119 - 3,858 Commercial real estate - Investor 7,725 - 783 - 102 8,610 Commercial real estate - Owner occupied 2,521 - (535) 145 565 2,406 Construction 4,431 - 406 60 1 4,778 Real estate - Investor 2,217 - (290) 3 18 1,942 Real estate - Owner occupied 3,204 - (508) - 25 2,721 Multifamily 3,518 - (301) - - 3,217 HELOC 2,255 - (359) - 52 1,948 HELOC - Purchased 398 - (43) 66 - 289 Other 1 700 - 64 53 41 752 $ 31,273 $ - $ 1,280 $ 451 $ 816 $ 32,918 Nine months ended September 30, 2020 Commercial $ 3,015 $ (292) $ (250) $ 124 $ 48 $ 2,397 Leases 1,262 501 2,214 119 - 3,858 Commercial real estate - Investor 6,218 (741) 3,009 15 139 8,610 Commercial real estate - Owner occupied 3,678 (848) 556 1,546 566 2,406 Construction 513 1,334 2,990 60 1 4,778 Residential real estate - Investor 601 740 564 8 45 1,942 Residential real estate - Owner occupied 1,257 1,320 30 43 157 2,721 Multifamily 1,444 1,732 41 - - 3,217 HELOC 1,161 1,526 (902) 85 248 1,948 HELOC - Purchased - - 355 66 - 289 Other 640 607 (433) 192 130 752 $ 19,789 $ 5,879 $ 8,174 $ 2,258 $ 1,334 $ 32,918 The ACL on loans excludes $4.0 million of allowance for unfunded commitments, recorded within Other Liabilities, as of September 30, 2020. The following table presents activity in the allowance for loan and lease losses for the three and nine months ended at September 30, 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 September 30, 2019 Commercial $ 3,377 $ (49) $ 20 $ 10 $ 3,318 Leases 961 66 47 - 980 Commercial real estate - Investor 6,307 (431) 159 12 5,729 Commercial real estate - Owner occupied 2,973 428 - - 3,401 Construction 820 (7) 7 - 806 Real estate - Investor 586 (6) 1 7 586 Real estate - Owner occupied 1,204 62 2 15 1,279 Multifamily 1,230 (78) - - 1,152 HELOC 1,304 (79) 19 21 1,227 HELOC - Purchased 38 (2) - - 36 Other 1 572 646 142 61 1,137 $ 19,372 $ 550 $ 397 $ 126 $ 19,651 Nine months ended September 30, 2019 Commercial $ 2,832 $ 539 $ 99 $ 46 $ 3,318 Leases 734 293 47 - 980 Commercial real estate - Investor 5,492 496 303 44 5,729 Commercial real estate - Owner occupied 3,835 (308) 129 3 3,401 Construction 969 (156) 8 1 806 Residential real estate - Investor 629 (62) 7 26 586 Residential real estate - Owner occupied 1,302 (61) 14 52 1,279 Multifamily 1,143 1 - 8 1,152 HELOC 1,449 (232) 69 79 1,227 HELOC - Purchased - 265 229 - 36 Other 1 621 675 311 152 1,137 $ 19,006 $ 1,450 $ 1,216 $ 411 $ 19,651 1 The “Other” segment includes consumer, overdrafts and net deferred costs. Aged analysis of past due loans by segments 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 September 30, 2020 1 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 56 $ - $ 1,368 $ 1,424 $ 434,853 $ 436,277 $ - Leases 64 105 339 508 133,168 133,676 169 Commercial real estate - Investor 6 128 1,655 1,789 547,181 548,970 - Commercial real estate - Owner occupied 1,965 - 7,618 9,583 326,395 335,978 207 Construction - - - - 91,856 91,856 - Residential real estate - Investor 63 - 324 387 61,536 61,923 - Residential real estate - Owner occupied 220 500 391 1,111 113,172 114,283 44 Multifamily 2,664 - 707 3,371 185,027 188,398 - HELOC 313 19 175 507 85,375 85,882 2 HELOC - Purchased - - - - 22,312 22,312 - Other 2 14 - - 14 10,758 10,772 - Total $ 5,365 $ 752 $ 12,577 $ 18,694 $ 2,011,633 $ 2,030,327 $ 422 1 Loans modified under the CARES Act are considered current if they are in compliance with the modified terms. There were 468 loans which totaled $226.2 million modified under the CARES Act. As of September 30, 2020, 96 loans of the original 468 loans deferred, or $54.1 million, had an active deferral request and were in compliance with modified terms; 372 loans which totaled $172.1 million had resumed payments. 2 The “Other” segment includes consumer and overdrafts. 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” segment includes consumer, overdrafts and net deferred costs. The table presents all nonaccrual loans and loans on nonaccrual for which there was no related allowance for credit losses as of September 30, 2020, and December 31, 2019: September 30, 2020 December 31, 2019 Nonaccrual Nonaccrual Nonaccrual With no ACL Nonaccrual With no ACL Commercial $ 1,605 $ 50 $ 144 $ - Leases 1,910 1,910 329 70 Commercial real estate - Investor 2,021 2,021 1,695 1,590 Commercial real estate - Owner occupied 8,428 5,944 5,180 2,366 Construction - - 93 93 Residential real estate - Investor 935 935 788 788 Residential real estate - Owner occupied 3,229 3,229 2,572 2,475 Multifamily 895 895 68 68 HELOC 1,047 835 1,364 1,154 HELOC - Purchased - - 180 180 Other 6 - 19 2 Total, excluding PCI loans 20,076 15,819 12,432 8,786 PCI loans, net of purchase accounting adjustments - - 2,963 2,963 Total $ 20,076 $ 15,819 $ 15,395 $ 11,749 The Company recognized $93,000 of interest on nonaccrual loans during the three months ended September 30, 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. Substandard. Doubtful. Credits that are not covered by the definitions above are pass credits, which are not considered to be adversely rated. The Company follows the 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 September 30, 2020: Revolving Loans Converted Revolving To Term 2020 2019 2018 2017 2016 Prior Loans Loans Total Commercial Pass $ 161,595 $ 42,502 $ 16,568 $ 7,215 $ 3,096 $ 2,755 $ 188,270 $ - $ 422,001 Special Mention 443 1,564 68 13 4 16 6,176 - 8,284 Substandard 1 2,252 52 2,036 - - 13 1,639 - 5,992 Total commercial 164,290 44,118 18,672 7,228 3,100 2,784 196,085 - 436,277 Leases Pass 39,333 55,923 18,937 7,755 6,463 1,196 - - 129,607 Special Mention - 799 - - - - - - 799 Substandard 1 - 1,255 1,004 64 467 480 - - 3,270 Total leases 39,333 57,977 19,941 7,819 6,930 1,676 - - 133,676 Commercial real estate - Investor Pass 128,123 168,503 92,140 70,566 56,666 24,362 868 - 541,228 Special Mention 1,816 - 231 - 99 - - - 2,146 Substandard 1 474 3,783 - - 345 994 - - 5,596 Total commercial real estate - investor 130,413 172,286 92,371 70,566 57,110 25,356 868 - 548,970 Commercial real estate - Owner occupied Pass 55,107 54,702 78,655 45,928 51,895 30,174 1,083 - 317,544 Special Mention 925 - 464 2,141 5,246 - - - 8,776 Substandard 1 185 2,454 1,088 1,695 708 3,528 - - 9,658 Total commercial real estate - owner occupied 56,217 57,156 80,207 49,764 57,849 33,702 1,083 - 335,978 Construction Pass 28,182 40,302 6,972 589 245 1,283 9,136 - 86,709 Special Mention 39 - - - - - - - 39 Substandard 1 - 3,058 2,050 - - - - - 5,108 Total construction 28,221 43,360 9,022 589 245 1,283 9,136 - 91,856 Residential real estate - Investor Pass 10,497 14,632 11,721 8,488 2,558 11,985 516 - 60,397 Special Mention - - - - - - - - - Substandard 1 340 - 614 - 99 473 - - 1,526 Total residential real estate - investor 10,837 14,632 12,335 8,488 2,657 12,458 516 - 61,923 Residential real estate - Owner occupied Pass 8,747 23,545 12,094 18,796 10,716 33,867 2,682 - 110,447 Special Mention - - - - - - - - - Substandard 1 48 - 412 221 535 2,620 - - 3,836 Total residential real estate - owner occupied 8,795 23,545 12,506 19,017 11,251 36,487 2,682 - 114,283 Multifamily Pass 27,856 37,940 45,291 45,516 13,143 10,514 202 - 180,462 Special Mention - - 1,544 552 7 - - - 2,103 Substandard 1 69 - 2,687 901 119 2,057 - - 5,833 Total multifamily 27,925 37,940 49,522 46,969 13,269 12,571 202 - 188,398 HELOC Pass 2,185 2,287 1,697 2,471 694 1,197 73,772 - 84,303 Special Mention - - - - - - 13 - 13 Substandard 1 - - 88 37 265 93 1,083 - 1,566 Total HELOC 2,185 2,287 1,785 2,508 959 1,290 74,868 - 85,882 HELOC - Purchased Pass - - - - - 22,312 - - 22,312 Special Mention - - - - - - - - - Substandard 1 - - - - - - - - - Total HELOC - purchased - - - - - 22,312 - - 22,312 Other Pass 995 1,415 451 320 468 324 6,527 - 10,500 Special Mention - - - - - - - - - Substandard 1 - - 266 6 - - - - 272 Total other 995 1,415 717 326 468 324 6,527 - 10,772 Total loans Pass 462,620 441,751 284,526 207,644 145,944 139,969 283,056 - 1,965,510 Special Mention 3,223 2,363 2,307 2,706 5,356 16 6,189 - 22,160 Substandard 1 3,368 10,602 10,245 2,924 2,538 10,258 2,722 - 42,657 Total loans $ 469,211 $ 454,716 $ 297,078 $ 213,274 $ 153,838 $ 150,243 $ 291,967 $ - $ 2,030,327 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” segment 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 $541,000 and $831,000 in residential real estate loans in the process of foreclosure as of September 30, 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. Additionally, in accordance with interagency guidance, short-term deferrals granted due to the COVID-19 pandemic are not considered TDRs unless the borrower was experiencing financial difficulty prior to the pandemic. The specific allocation of the allowance for credit 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 credit 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 credit 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: TDR Modifications TDR Modifications Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 # of Pre-modification Post-modification # of Pre-modification Post-modification contracts recorded investment recorded investment contracts recorded investment recorded investment Troubled debt restructurings Residential real estate - Owner occupied HAMP 1 1 $ 154 $ 153 3 $ 410 $ 404 Total 1 $ 154 $ 153 3 $ 410 $ 404 TDR Modifications TDR Modifications Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 # of Pre-modification Post-modification # of Pre-modification Post-modification contracts recorded investment recorded investment contracts recorded investment recorded investment Troubled debt restructurings Commercial real estate - Investor Other 2 1 $ 1,159 $ 1,122 2 $ 1,217 $ 1,177 Residential real estate - Owner occupied HAMP 1 - - - 3 399 297 HELOC HAMP 1 - - - 1 39 34 Other 2 - - - 1 39 38 Total 1 $ 1,159 $ 1,122 7 $ 1,694 $ 1,546 1 HAMP: Home Affordable Modification Program. 2 Other: Change of terms from bankruptcy court. 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 September 30, 2020, and September 30, 2019, for loans that were restructured within the prior 12 month period.

Other Real Estate Owned

Other Real Estate Owned	9 Months Ended
Other Real Estate Owned	Sep. 30, 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 allowance, for the periods presented are itemized in the following table: Three Months Ended Nine Months Ended September 30, September 30, Other real estate owned 2020 2019 2020 2019 Balance at beginning of period $ 5,082 $ 5,668 $ 5,004 $ 7,175 Property additions, net of acquisition adjustments 314 305 898 305 Less: Proceeds from property disposals, net of participation purchase and of gains/losses 2,664 1,088 2,952 2,390 Period valuation adjustments 46 203 264 399 Other adjustments - - - 9 Balance at end of period $ 2,686 $ 4,682 $ 2,686 $ 4,682 Activity in the valuation allowance was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Balance at beginning of period $ 6,464 $ 8,061 $ 6,712 $ 8,027 Provision for unrealized losses 46 203 264 399 Reductions taken on sales (4,897) (798) (5,363) (960) Balance at end of period $ 1,613 $ 7,466 $ 1,613 $ 7,466 Expenses related to OREO, net of lease revenue includes: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Gain on sales, net $ (165) $ (104) $ (188) $ (254) Provision for unrealized losses 46 203 264 399 Operating expenses 253 (73) 460 184 Less: Lease revenue 9 - 31 5 Net OREO expense $ 125 $ 26 $ 505 $ 324

Deposits

Deposits	9 Months Ended
Deposits	Sep. 30, 2020
Deposits
Deposits	Note 6 – Deposits Major classifications of deposits were as follows: September 30, 2020 December 31, 2019 Noninterest bearing demand $ 889,085 $ 669,795 Savings 382,711 307,015 NOW accounts 492,407 425,792 Money market accounts 310,613 282,478 Certificates of deposit of less than $100,000 208,570 227,578 Certificates of deposit of $100,000 through $250,000 129,522 151,279 Certificates of deposit of more than $250,000 66,335 62,812 Total deposits $ 2,479,243 $ 2,126,749

Borrowings

Borrowings	9 Months Ended
Borrowings	Sep. 30, 2020
Borrowings
Borrowings	Note 7 – Borrowings The following table is a summary of borrowings as of September 30, 2020, and December 31, 2019. Junior subordinated debentures are discussed in more detail in Note 8: September 30, 2020 December 31, 2019 Securities sold under repurchase agreements $ 59,268 $ 48,693 Other short-term borrowings 1 6,125 48,500 Junior subordinated debentures 25,773 57,734 Senior notes 44,349 44,270 Notes payable and other borrowings 24,469 6,673 Total borrowings $ 159,984 $ 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 $59.3 million at September 30, 2020, and $48.7 million at December 31, 2019. The fair value of the pledged collateral was $79.3 million at September 30, 2020, and $70.7 million at December 31, 2019. At September 30, 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 September 30, 2020, the Bank had $6.1 million in short-term advances outstanding under the FHLBC compared to $48.5 million outstanding as of December 31, 2019; the remaining $6.1 million was issued at a rate of 2.19%. The Bank also assumed $23.4 million of long-term FHLBC advances with the ABC Bank acquisition in 2018. At September 30, 2020, one advance remains in long-term status, with a total outstanding balance of $6.5 million, at a 2.83% interest rate, and is scheduled to mature on February 2, 2026. FHLBC stock as of September 30, 2020 was valued at $3.7 million, and any potential FHLBC advances were collateralized by securities with a fair value of $53.1 million and loans with a principal balance of $569.7 million, which carried a FHLBC-calculated combined collateral value of $428.4 million. The Company had excess collateral of $289.6 million available to secure borrowings at September 30, 2020. The Company also has $44.3 million of senior notes outstanding, net of deferred issuance costs, as of September 30, 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 September 30, 2020, and December 31, 2019, unamortized debt issuance costs related to the senior notes were $651,000 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, of which $18.0 million is outstanding as of September 30, 2020, with a correspondent bank related to the Company’s redemption of the 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	9 Months Ended
Junior Subordinated Debentures	Sep. 30, 2020
Junior Subordinated Debentures.
Junior Subordinated Debentures	Note 8 – Junior Subordinated Debentures On March 2, 2020, the Company redeemed the 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 September 30, 2020, compared to the rate paid for the quarter ended September 30, 2019, of 4.40% . 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 September 30, 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	9 Months Ended
Equity Compensation Plans	Sep. 30, 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 September 30, 2020, 343,602 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. There were no stock options granted or exercised during the nine months ended September 30, 2020, and as of September 30, 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 and 166,106 restricted stock units issued under the 2019 Plan during the nine months ended September 30, 2020 and September 30, 2019, respectively. Compensation expense is recognized over the vesting period of the restricted stock units based on the market value of the award on the issue date. Total compensation cost that has been recorded for the Plan was $1.6 million in the first nine months of 2020 and $1.9 million for the first nine months of 2019. A summary of changes in the Company’s unvested restricted awards for the nine months ended September 30, 2020, is as follows: September 30, 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 (149,952) 11.16 Forfeited - - Unvested at September 30 543,275 $ 13.17 Total unrecognized compensation cost of restricted awards was $2.8 million as of September 30, 2020, which is expected to be recognized over a weighted-average period of 1.75 years.

Earnings Per Share

Earnings Per Share	9 Months Ended
Earnings Per Share	Sep. 30, 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 September 30: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic earnings per share: Weighted-average common shares outstanding 29,559,026 29,899,063 29,708,239 29,880,511 Net income $ 10,265 $ 12,173 $ 19,778 $ 29,919 Basic earnings per share $ 0.35 $ 0.41 $ 0.67 $ 1.00 Diluted earnings per share: Weighted-average common shares outstanding 29,559,026 29,899,063 29,708,239 29,880,511 Dilutive effect of unvested restricted awards 1 543,275 539,270 553,482 510,454 Diluted average common shares outstanding 30,102,301 30,438,333 30,261,721 30,390,965 Net Income $ 10,265 $ 12,173 $ 19,778 $ 29,919 Diluted earnings per share $ 0.34 $ 0.40 $ 0.65 $ 0.98 1 Includes the common stock equivalents for restricted share rights that are dilutive.

Regulatory & Capital Matters

Regulatory & Capital Matters	9 Months Ended
Regulatory & Capital Matters	Sep. 30, 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 September 30, 2020, the Bank exceeded those thresholds. At September 30, 2020, the Bank’s Tier 1 capital leverage ratio was 10.90%, a decrease of 160 basis points from December 31, 2019, but is well above the 8.00% objective. The reduction in the Tier 1 capital leverage ratio is primarily due to a $30.0 million dividend the Bank paid the Company in March 2020.The Bank’s total capital ratio was 15.49%, an increase of 26 basis points from December 31, 2019, and also well above the objective of 12.00%. 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 September 30, 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 September 30, 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 September 30, 2020 Common equity tier 1 capital to risk weighted assets Consolidated $ 269,874 11.97 % $ 157,821 7.000 % N/A N/A Old Second Bank 319,662 14.24 157,137 7.000 $ 145,913 6.50 % Total capital to risk weighted assets Consolidated 323,041 14.33 236,701 10.500 N/A N/A Old Second Bank 347,723 15.49 235,706 10.500 224,482 10.00 Tier 1 capital to risk weighted assets Consolidated 294,874 13.08 191,623 8.500 N/A N/A Old Second Bank 319,662 14.24 190,809 8.500 179,585 8.00 Tier 1 capital to average assets Consolidated 294,874 10.07 117,130 4.00 N/A N/A Old Second Bank 319,662 10.90 117,307 4.00 146,634 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 provided banking organizations that adopted 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 September 30, 2020, the capital measures of the Company exclude $5.7 million, which is the Day 1 impact to retained earnings and 25% of the $10.4 million increase in the allowance for credit losses in the first nine months 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, second and third quarters of 2020, we repurchased 312,723 shares, 145,932 shares, and 137,756 shares of our common stock at weighted average prices of $7.06 per share, $6.97 per share, and $8.34 per share, respectively, pursuant to the Repurchase Program.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
Fair Value Measurements	Sep. 30, 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 September 30, 2020, and December 31, 2019, respectively, measured by the Company at fair value on a recurring basis: September 30, 2020 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 4,134 $ - $ - $ 4,134 U.S. government agencies - 7,005 - 7,005 U.S. government agencies mortgage-backed - 18,219 - 18,219 States and political subdivisions - 244,987 4,790 249,777 Collateralized mortgage obligations - 57,013 - 57,013 Asset-backed securities - 81,585 - 81,585 Collateralized loan obligations - 30,688 - 30,688 Loans held-for-sale - 10,229 - 10,229 Mortgage servicing rights - - 5,010 5,010 Interest rate swap agreements - 10,506 - 10,506 Mortgage banking derivatives - 1,434 - 1,434 Total $ 4,134 $ 461,666 $ 9,800 $ 475,600 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 15,231 $ - $ 15,231 Total $ - $ 15,231 $ - $ 15,231 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: Nine Months Ended September 30, 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 (16) (2,463) Included in other comprehensive income (216) - Purchases, issuances, sales, and settlements Purchases 12,900 - Issuances - 1,813 Settlements (13,297) (275) Ending balance September 30, 2020 $ 4,790 $ 5,010 Nine Months Ended September 30, 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 (25) (2,384) Included in other comprehensive income 898 - Purchases, issuances, sales, and settlements Purchases 17,643 - Issuances - 906 Settlements (20,808) (518) Ending balance September 30, 2019 $ 5,873 $ 5,361 The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of September 30, 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 $ 5,010 Discounted Cash Flow Discount Rate 11.0 - 15.0% 11.0 % Prepayment Speed 0.0 - 42.8% 15.4 % 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 $4.8 million for state and political subdivisions representing various local municipality securities at September 30, 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 September 30, 2019, was $5.9 million. These securities were 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 individually evaluated (formerly, impaired) loans and OREO. For assets measured at fair value on a nonrecurring basis at September 30, 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: September 30, 2020 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 12,200 $ 12,200 Other real estate owned, net 2 - - 2,686 2,686 Total $ - $ - $ 14,886 $ 14,886 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 $14.9 million and a valuation allowance of $2.7 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $1.6 million for the nine months ended September 30, 2020. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $2.7 million at September 30, 2020, which is made up of the outstanding balance of $4.3 million, net of a valuation allowance of $1.6 million and no participations. 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 million 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 at December 31, 2019, which is made up of the outstanding balance of $12.7 million, net of a valuation allowance of $6.7 million and a participation of $937,000 . 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	9 Months Ended
Fair Values of Financial Instruments	Sep. 30, 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 September 30, 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: September 30, 2020 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 29,489 $ 29,489 $ 29,489 $ - $ - Interest earning deposits with financial institutions 283,651 283,651 283,651 - - Securities available-for-sale 448,421 448,421 4,134 439,497 4,790 FHLBC and FRBC stock 9,917 9,917 - 9,917 - Loans held-for-sale 10,229 10,229 - 10,229 - Net loans 1,997,409 2,013,415 - - 2,013,415 Interest rate swap agreements 10,506 10,506 - 10,506 - Interest receivable on securities and loans 9,706 9,706 - 9,706 - Financial liabilities: Noninterest bearing deposits $ 889,085 $ 889,085 $ 889,085 $ - $ - Interest bearing deposits 1,590,158 1,593,058 - 1,593,058 - Securities sold under repurchase agreements 59,268 59,268 - 59,268 - Other short-term borrowings 6,125 6,125 - 6,125 - Junior subordinated debentures 25,773 14,167 - 14,167 - Senior notes 44,349 44,799 44,799 - - Note payable and other borrowings 24,469 25,160 - 25,160 - Interest rate swap agreements 15,128 15,128 - 15,128 - Interest payable on deposits and borrowings 1,257 1,257 - 1,257 - 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 earning 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 $ 669,795 $ 669,795 $ - $ - Interest bearing deposits 1,456,954 1,457,832 - 1,457,832 - Securities sold under repurchase agreements 48,693 48,693 - 48,693 - Other short-term borrowings 48,500 48,500 - 48,500 - Junior subordinated debentures 57,734 51,188 33,614 17,574 - Senior notes 44,270 46,269 46,269 - - Note payable and other borrowings 6,673 7,003 - 7,003 - Interest rate swap agreements 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	9 Months Ended
	Sep. 30, 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 these objectives, 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 $180,000 will be reclassified as an increase to interest income and an additional $163,000 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 September 30, 2020, 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 In December 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 of 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 to hedge further. The Bank held $1.7 million of cash collateral related to one correspondent financial institution to cover the loan pool hedge mark to market valuation at September 30, 2020. 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 $17.2 million of cash collateral held by one correspondent financial institution to support interest rate swap activity at September 30, 2020 and no investment securities were required to be pledged to any 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 and $11.0 million of investment securities were required to be pledged to two correspondent financial institutions. At September 30, 2020, the notional amount of non-hedging interest rate swaps was $191.3 million with a weighted average maturity of 5.0 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 September 30, 2020 and December 31, 2019. Fair Value of Derivative Instruments September 30, 2020 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swaps 2 75,774 Other Assets 2,988 Other Liabilities 7,610 Total derivatives designated as hedging instruments 2,988 7,610 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 28 191,341 Other Assets 7,518 Other Liabilities 7,518 Interest rate lock commitments and forward contracts 250 92,154 Other Assets 1,434 Other Liabilities - Other contracts 4 26,683 Other Assets - Other Liabilities 103 Total derivatives not designated as hedging instruments 8,952 7,621 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 2 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 25 177,872 Other Assets 2,771 Other Liabilities 2,771 Interest rate lock commitments and forward contracts 87 23,667 Other Assets 250 Other Liabilities - Other contracts 4 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 $3.3 million as of September 30, 2020, and a loss of $3.4 million as of September 30, 2019. The amount of the loss reclassified from AOCI to interest income on the income statement totaled $72,000 and $27,000 for the nine months ended September 30, 2020, and September 30, 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 September 30, 2020, and December 31, 2019. The following table is a summary of letter of credit commitments: September 30, 2020 December 31, 2019 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ 329 $ 8,881 $ 9,210 $ 339 $ 9,612 $ 9,951 Commercial standby - - - - - - Performance standby 356 5,825 6,181 571 6,212 6,783 685 14,706 15,391 910 15,824 16,734 Non-borrower: Performance standby - 67 67 - 67 67 Total letters of credit $ 685 $ 14,773 $ 15,458 $ 910 $ 15,891 $ 16,801 Unused loan commitments: $ 93,875 $ 325,162 $ 419,037 $ 111,348 $ 320,120 $ 431,468

Summary of Significant Accounti

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 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) 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 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 of $8.0 million was recorded, comprised of $5.2 million of ACL related to loans and leases and $2.5 million of ACL related to unfunded commitments, based on the 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 $2.1 million during the second quarter of 2020, comprised of $1.4 million of ACL related to loans and leases, and $734,000 of ACL related to unfunded commitments. We recorded a provision for credit losses of $300,000 during the third quarter of 2020, comprised of $1.3 million of ACL related to loans and leases, and a $980,000 reversal of ACL related to unfunded commitments due to a reduction in the funding rate assumptions based on analysis of the twelve month utilization rate on commercial 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.
Allowance for Credit Losses	Allowance for Credit Losses The 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 maturity), 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, we used an identified peer group 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, the Company determined had experienced a more-than-insignificant deterioration in credit quality since origination. The Company records acquired PCD loans by adding the expected credit losses (i.e., the ACL) to the purchase price of the financial assets rather than recording it through the provision for credit losses in the income statement; thus, the sum of the loans’ purchase price and initial ALLL estimate represents the initial amortized cost basis. The difference between the initial amortized cost basis and the unpaid principal balance is the non-credit discount or premium. Subsequent changes in the ACL on PCD loans is recognized through the provision for credit losses. The non-credit discount or premium is accreted or amortized into interest income over the remaining life of the PCD loan on a level-yield basis. In accordance with the transition requirements within the CECL standard, the Company’s purchased credit impaired loans (“PCI loans”) are now treated as PCD loans. Before January 1, 2020, PCI loans that met the definition of nonperforming loans were excluded from the Company’s nonperforming disclosures, as long as their cash flows and the timing of such cash flows continued to be estimable and probable of collection. As a result of CECL implementation on January 1, 2020, PCD loans that meet the definition of nonperforming loans are now included in the Company’s nonperforming disclosures. The qualitative factors applied to each ● 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 individually review those loans that have collateral dependency or are nonperforming. 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	Risks and Uncertainties The coronavirus (COVID-19) pandemic, which was declared a national emergency in the United States in March 2020, continues to create extensive disruptions to the global economy and financial markets and to businesses and the lives of individuals throughout the world. In particular, the COVID-19 pandemic has severely restricted the level of economic activity in the Company’s markets. Federal and state governments have taken, and may continue to take, unprecedented actions to contain the spread of the disease, including quarantines, travel bans, shelter-in-place orders, closures of businesses and schools, fiscal stimulus, and legislation designed to deliver monetary aid and other relief to businesses and individuals impacted by the pandemic. Although in various locations certain activity restrictions have been relaxed and businesses and schools have reopened with some level of success, in many states and localities the number of individuals diagnosed with COVID-19 has increased significantly, which may cause a freezing or, in certain cases, a reversal of previously announced relaxation of activity restrictions and may prompt the need for additional aid and other forms of relief. The impact of the COVID-19 pandemic is fluid and continues to evolve. The unprecedented and rapid spread of COVID-19 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 bank equity market valuations and significant volatility and disruption in financial markets. 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, and declining further to 0.65% as of June 30, 2020. 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, possibly materially, an adverse effect on the Company’s business, financial condition 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 September 30, 2020, our consolidated balance sheet included goodwill of $18.6 million. For each quarter end 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 from the latter half of March through the third quarter, specifically, the 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 September 30, 2020. 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	Subsequent Events On October 19, 2020, the Company’s Board of Directors declared a cash dividend of $0.01 per share payable on November 9, 2020, to stockholders of record as of October 30, 2020; dividends of $295,000 are scheduled to be paid to stockholders on November 9, 2020.

Securities (Tables)

Securities (Tables)	9 Months Ended
Securities (Tables)	Sep. 30, 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 September 30, 2020 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 4,013 $ 121 $ - $ 4,134 U.S. government agencies 7,169 - (164) 7,005 U.S. government agencies mortgage-backed 17,056 1,165 (2) 18,219 States and political subdivisions 232,416 18,316 (955) 249,777 Collateralized mortgage obligations 54,597 2,839 (423) 57,013 Asset-backed securities 81,986 905 (1,306) 81,585 Collateralized loan obligations 31,202 19 (533) 30,688 Total securities available-for-sale $ 428,439 $ 23,365 $ (3,383) $ 448,421 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 $ 413 2.01 % $ 415 Due after one year through five years 6,056 2.11 6,309 Due after five years through ten years 28,014 2.31 28,993 Due after ten years 209,115 3.03 225,199 243,598 2.92 260,916 Mortgage-backed and collateralized mortgage obligations 71,653 3.08 75,232 Asset-backed securities 81,986 1.51 81,585 Collateralized loan obligations 31,202 2.12 30,688 Total securities available-for-sale $ 428,439 2.62 % $ 448,421
Schedule of amortized cost and fair value of securities that exceed 10% of stockholders equity	At September 30, 2020, the Company had invested in securities issued from one originator that individually amounted to over 10% of the Company’s stockholders’ equity. Information regarding this issuer and the value of the securities issued follows: September 30, 2020 Amortized Fair Issuer Cost Value Towd Point Mortgage Trust $ 33,242 $ 35,477
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 September 30, 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 $ 164 $ 7,005 4 $ 164 $ 7,005 U.S. government agencies mortgage-backed 1 2 260 - - - 1 2 260 States and political subdivisions - - - 1 955 3,872 1 955 3,872 Collateralized mortgage obligations 4 421 8,027 1 2 279 5 423 8,306 Asset-backed securities 5 425 22,603 3 881 33,069 8 1,306 55,672 Collateralized loan obligations 1 123 7,376 4 410 21,245 5 533 28,621 Total securities available-for-sale 11 $ 971 $ 38,266 13 $ 2,412 $ 65,470 24 $ 3,383 $ 103,736 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 Nine Months Ended September 30, September 30, Securities available-for-sale 2020 2019 2020 2019 Proceeds from sales of securities $ - $ 57,228 $ 18,006 $ 177,824 Gross realized gains on securities $ - $ 3,841 $ 17 $ 5,432 Gross realized losses on securities (1) (378) (42) (956) Net realized (losses) gains $ (1) $ 3,463 $ (25) $ 4,476 Income tax (expense) benefit on net realized gains (losses) $ - $ (973) $ 7 $ (1,257) Effective tax rate applied 0.0 % 28.1 % 28.0 % 28.1 %

Loans and Allowance for Credi_2

Loans and Allowance for Credit Losses on Loans (Tables)	9 Months Ended
Loans and Allowance for Credit Losses on Loans (Tables)	Sep. 30, 2020
Loans and Allowance for Credit Losses on Loans
Schedule of major classifications of loans	September 30, 2020 December 31, 2019 Commercial $ 436,277 $ 332,842 Leases 133,676 119,751 Commercial real estate - Investor 548,970 520,095 Commercial real estate - Owner occupied 335,978 345,504 Construction 91,856 69,617 Residential real estate - Investor 61,923 71,105 Residential real estate - Owner occupied 114,283 136,023 Multifamily 188,398 189,773 HELOC 85,882 91,605 HELOC - Purchased 22,312 31,852 Other 1 10,772 12,258 Total loans, excluding deferred loan costs and PCI loans 2 2,030,327 1,920,425 Net deferred loan costs - 1,786 Total loans, excluding PCI loans 2 2,030,327 1,922,211 PCI loans - 8,601 Total loans, including deferred loan costs and PCI loans 2 $ 2,030,327 $ 1,930,812 Allowance for credit losses on loans (32,918) (19,789) Net loans 3 $ 1,997,409 $ 1,911,023 1 The “Other” segment for 2020 includes consumer and overdrafts in this table and in subsequent tables within Note 4 - Loans and Allowance for Credit Losses on Loans. 2 As noted in the paragraph below, for periods before the Company’s adoption of CECL on January 1, 2020, PCI loans and their related deferred loan costs (now PCD loans) were excluded from nonperforming loan disclosures and were therefore separately reported. After the adoption of CECL, all PCD loans are now included within each relevant loan type and are not separately reported as PCI loans, because such loans are now included within the Company’s nonperforming loan disclosures, if such loans otherwise meet the definition of a nonperforming loan. 3 Excludes accrued interest receivable of $7.1 million and $6.5 million at September 30, 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 September 30, 2020 Real Estate Receivable Equipment Other Total Allocation Commercial $ - $ 1,543 $ 64 $ - $ 1,607 $ 65 Leases - - 3,744 - 3,744 911 Commercial real estate - Investor 4,580 - - - 4,580 92 Commercial real estate - Owner occupied 10,846 - - - 10,846 198 Construction 1,883 - - - 1,883 944 Residential real estate - Investor 935 - - - 935 - Residential real estate - Owner occupied 3,559 - - - 3,559 11 Multifamily 2,305 - - - 2,305 384 HELOC 1,047 - - - 1,047 96 HELOC - Purchased - - - - - - Other - - - 10 10 6 Total $ 25,155 $ 1,543 $ 3,808 $ 10 $ 30,516 $ 2,707
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 and nine months ended September 30, 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 September 30, 2020 Commercial $ 2,292 $ - $ 98 $ 5 $ 12 $ 2,397 Leases 2,012 - 1,965 119 - 3,858 Commercial real estate - Investor 7,725 - 783 - 102 8,610 Commercial real estate - Owner occupied 2,521 - (535) 145 565 2,406 Construction 4,431 - 406 60 1 4,778 Real estate - Investor 2,217 - (290) 3 18 1,942 Real estate - Owner occupied 3,204 - (508) - 25 2,721 Multifamily 3,518 - (301) - - 3,217 HELOC 2,255 - (359) - 52 1,948 HELOC - Purchased 398 - (43) 66 - 289 Other 1 700 - 64 53 41 752 $ 31,273 $ - $ 1,280 $ 451 $ 816 $ 32,918 Nine months ended September 30, 2020 Commercial $ 3,015 $ (292) $ (250) $ 124 $ 48 $ 2,397 Leases 1,262 501 2,214 119 - 3,858 Commercial real estate - Investor 6,218 (741) 3,009 15 139 8,610 Commercial real estate - Owner occupied 3,678 (848) 556 1,546 566 2,406 Construction 513 1,334 2,990 60 1 4,778 Residential real estate - Investor 601 740 564 8 45 1,942 Residential real estate - Owner occupied 1,257 1,320 30 43 157 2,721 Multifamily 1,444 1,732 41 - - 3,217 HELOC 1,161 1,526 (902) 85 248 1,948 HELOC - Purchased - - 355 66 - 289 Other 640 607 (433) 192 130 752 $ 19,789 $ 5,879 $ 8,174 $ 2,258 $ 1,334 $ 32,918 The ACL on loans excludes $4.0 million of allowance for unfunded commitments, recorded within Other Liabilities, as of September 30, 2020. The following table presents activity in the allowance for loan and lease losses for the three and nine months ended at September 30, 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 September 30, 2019 Commercial $ 3,377 $ (49) $ 20 $ 10 $ 3,318 Leases 961 66 47 - 980 Commercial real estate - Investor 6,307 (431) 159 12 5,729 Commercial real estate - Owner occupied 2,973 428 - - 3,401 Construction 820 (7) 7 - 806 Real estate - Investor 586 (6) 1 7 586 Real estate - Owner occupied 1,204 62 2 15 1,279 Multifamily 1,230 (78) - - 1,152 HELOC 1,304 (79) 19 21 1,227 HELOC - Purchased 38 (2) - - 36 Other 1 572 646 142 61 1,137 $ 19,372 $ 550 $ 397 $ 126 $ 19,651 Nine months ended September 30, 2019 Commercial $ 2,832 $ 539 $ 99 $ 46 $ 3,318 Leases 734 293 47 - 980 Commercial real estate - Investor 5,492 496 303 44 5,729 Commercial real estate - Owner occupied 3,835 (308) 129 3 3,401 Construction 969 (156) 8 1 806 Residential real estate - Investor 629 (62) 7 26 586 Residential real estate - Owner occupied 1,302 (61) 14 52 1,279 Multifamily 1,143 1 - 8 1,152 HELOC 1,449 (232) 69 79 1,227 HELOC - Purchased - 265 229 - 36 Other 1 621 675 311 152 1,137 $ 19,006 $ 1,450 $ 1,216 $ 411 $ 19,651 1 The “Other” segment 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 September 30, 2020 1 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 56 $ - $ 1,368 $ 1,424 $ 434,853 $ 436,277 $ - Leases 64 105 339 508 133,168 133,676 169 Commercial real estate - Investor 6 128 1,655 1,789 547,181 548,970 - Commercial real estate - Owner occupied 1,965 - 7,618 9,583 326,395 335,978 207 Construction - - - - 91,856 91,856 - Residential real estate - Investor 63 - 324 387 61,536 61,923 - Residential real estate - Owner occupied 220 500 391 1,111 113,172 114,283 44 Multifamily 2,664 - 707 3,371 185,027 188,398 - HELOC 313 19 175 507 85,375 85,882 2 HELOC - Purchased - - - - 22,312 22,312 - Other 2 14 - - 14 10,758 10,772 - Total $ 5,365 $ 752 $ 12,577 $ 18,694 $ 2,011,633 $ 2,030,327 $ 422 1 Loans modified under the CARES Act are considered current if they are in compliance with the modified terms. There were 468 loans which totaled $226.2 million modified under the CARES Act. As of September 30, 2020, 96 loans of the original 468 loans deferred, or $54.1 million, had an active deferral request and were in compliance with modified terms; 372 loans which totaled $172.1 million had resumed payments. 2 The “Other” segment includes consumer and overdrafts. 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” segment includes consumer, overdrafts and net deferred costs.
Schedule of loans on nonaccrual for which there was no related allowance	September 30, 2020 December 31, 2019 Nonaccrual Nonaccrual Nonaccrual With no ACL Nonaccrual With no ACL Commercial $ 1,605 $ 50 $ 144 $ - Leases 1,910 1,910 329 70 Commercial real estate - Investor 2,021 2,021 1,695 1,590 Commercial real estate - Owner occupied 8,428 5,944 5,180 2,366 Construction - - 93 93 Residential real estate - Investor 935 935 788 788 Residential real estate - Owner occupied 3,229 3,229 2,572 2,475 Multifamily 895 895 68 68 HELOC 1,047 835 1,364 1,154 HELOC - Purchased - - 180 180 Other 6 - 19 2 Total, excluding PCI loans 20,076 15,819 12,432 8,786 PCI loans, net of purchase accounting adjustments - - 2,963 2,963 Total $ 20,076 $ 15,819 $ 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 $ 161,595 $ 42,502 $ 16,568 $ 7,215 $ 3,096 $ 2,755 $ 188,270 $ - $ 422,001 Special Mention 443 1,564 68 13 4 16 6,176 - 8,284 Substandard 1 2,252 52 2,036 - - 13 1,639 - 5,992 Total commercial 164,290 44,118 18,672 7,228 3,100 2,784 196,085 - 436,277 Leases Pass 39,333 55,923 18,937 7,755 6,463 1,196 - - 129,607 Special Mention - 799 - - - - - - 799 Substandard 1 - 1,255 1,004 64 467 480 - - 3,270 Total leases 39,333 57,977 19,941 7,819 6,930 1,676 - - 133,676 Commercial real estate - Investor Pass 128,123 168,503 92,140 70,566 56,666 24,362 868 - 541,228 Special Mention 1,816 - 231 - 99 - - - 2,146 Substandard 1 474 3,783 - - 345 994 - - 5,596 Total commercial real estate - investor 130,413 172,286 92,371 70,566 57,110 25,356 868 - 548,970 Commercial real estate - Owner occupied Pass 55,107 54,702 78,655 45,928 51,895 30,174 1,083 - 317,544 Special Mention 925 - 464 2,141 5,246 - - - 8,776 Substandard 1 185 2,454 1,088 1,695 708 3,528 - - 9,658 Total commercial real estate - owner occupied 56,217 57,156 80,207 49,764 57,849 33,702 1,083 - 335,978 Construction Pass 28,182 40,302 6,972 589 245 1,283 9,136 - 86,709 Special Mention 39 - - - - - - - 39 Substandard 1 - 3,058 2,050 - - - - - 5,108 Total construction 28,221 43,360 9,022 589 245 1,283 9,136 - 91,856 Residential real estate - Investor Pass 10,497 14,632 11,721 8,488 2,558 11,985 516 - 60,397 Special Mention - - - - - - - - - Substandard 1 340 - 614 - 99 473 - - 1,526 Total residential real estate - investor 10,837 14,632 12,335 8,488 2,657 12,458 516 - 61,923 Residential real estate - Owner occupied Pass 8,747 23,545 12,094 18,796 10,716 33,867 2,682 - 110,447 Special Mention - - - - - - - - - Substandard 1 48 - 412 221 535 2,620 - - 3,836 Total residential real estate - owner occupied 8,795 23,545 12,506 19,017 11,251 36,487 2,682 - 114,283 Multifamily Pass 27,856 37,940 45,291 45,516 13,143 10,514 202 - 180,462 Special Mention - - 1,544 552 7 - - - 2,103 Substandard 1 69 - 2,687 901 119 2,057 - - 5,833 Total multifamily 27,925 37,940 49,522 46,969 13,269 12,571 202 - 188,398 HELOC Pass 2,185 2,287 1,697 2,471 694 1,197 73,772 - 84,303 Special Mention - - - - - - 13 - 13 Substandard 1 - - 88 37 265 93 1,083 - 1,566 Total HELOC 2,185 2,287 1,785 2,508 959 1,290 74,868 - 85,882 HELOC - Purchased Pass - - - - - 22,312 - - 22,312 Special Mention - - - - - - - - - Substandard 1 - - - - - - - - - Total HELOC - purchased - - - - - 22,312 - - 22,312 Other Pass 995 1,415 451 320 468 324 6,527 - 10,500 Special Mention - - - - - - - - - Substandard 1 - - 266 6 - - - - 272 Total other 995 1,415 717 326 468 324 6,527 - 10,772 Total loans Pass 462,620 441,751 284,526 207,644 145,944 139,969 283,056 - 1,965,510 Special Mention 3,223 2,363 2,307 2,706 5,356 16 6,189 - 22,160 Substandard 1 3,368 10,602 10,245 2,924 2,538 10,258 2,722 - 42,657 Total loans $ 469,211 $ 454,716 $ 297,078 $ 213,274 $ 153,838 $ 150,243 $ 291,967 $ - $ 2,030,327 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” segment 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 TDR Modifications Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 # of Pre-modification Post-modification # of Pre-modification Post-modification contracts recorded investment recorded investment contracts recorded investment recorded investment Troubled debt restructurings Residential real estate - Owner occupied HAMP 1 1 $ 154 $ 153 3 $ 410 $ 404 Total 1 $ 154 $ 153 3 $ 410 $ 404 TDR Modifications TDR Modifications Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 # of Pre-modification Post-modification # of Pre-modification Post-modification contracts recorded investment recorded investment contracts recorded investment recorded investment Troubled debt restructurings Commercial real estate - Investor Other 2 1 $ 1,159 $ 1,122 2 $ 1,217 $ 1,177 Residential real estate - Owner occupied HAMP 1 - - - 3 399 297 HELOC HAMP 1 - - - 1 39 34 Other 2 - - - 1 39 38 Total 1 $ 1,159 $ 1,122 7 $ 1,694 $ 1,546 1 HAMP: Home Affordable Modification Program. 2 Other: Change of terms from bankruptcy court.

Other Real Estate Owned (Tables

Other Real Estate Owned (Tables)	9 Months Ended
Other Real Estate Owned (Tables)	Sep. 30, 2020
Other Real Estate Owned
Schedule of activity in the other real estate owned (OREO) portfolio, net of valuation reserve	Three Months Ended Nine Months Ended September 30, September 30, Other real estate owned 2020 2019 2020 2019 Balance at beginning of period $ 5,082 $ 5,668 $ 5,004 $ 7,175 Property additions, net of acquisition adjustments 314 305 898 305 Less: Proceeds from property disposals, net of participation purchase and of gains/losses 2,664 1,088 2,952 2,390 Period valuation adjustments 46 203 264 399 Other adjustments - - - 9 Balance at end of period $ 2,686 $ 4,682 $ 2,686 $ 4,682
Schedule of activity in valuation allowance	Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Balance at beginning of period $ 6,464 $ 8,061 $ 6,712 $ 8,027 Provision for unrealized losses 46 203 264 399 Reductions taken on sales (4,897) (798) (5,363) (960) Balance at end of period $ 1,613 $ 7,466 $ 1,613 $ 7,466
Schedule of expenses related to foreclosed assets, net of lease revenue	Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Gain on sales, net $ (165) $ (104) $ (188) $ (254) Provision for unrealized losses 46 203 264 399 Operating expenses 253 (73) 460 184 Less: Lease revenue 9 - 31 5 Net OREO expense $ 125 $ 26 $ 505 $ 324

Deposits (Tables)

Deposits (Tables)	9 Months Ended
Deposits (Tables)	Sep. 30, 2020
Deposits
Schedule of major classifications of deposits	September 30, 2020 December 31, 2019 Noninterest bearing demand $ 889,085 $ 669,795 Savings 382,711 307,015 NOW accounts 492,407 425,792 Money market accounts 310,613 282,478 Certificates of deposit of less than $100,000 208,570 227,578 Certificates of deposit of $100,000 through $250,000 129,522 151,279 Certificates of deposit of more than $250,000 66,335 62,812 Total deposits $ 2,479,243 $ 2,126,749

Borrowings (Tables)

Borrowings (Tables)	9 Months Ended
Borrowings (Tables)	Sep. 30, 2020
Borrowings
Summary of borrowings and junior subordinated debentures	September 30, 2020 December 31, 2019 Securities sold under repurchase agreements $ 59,268 $ 48,693 Other short-term borrowings 1 6,125 48,500 Junior subordinated debentures 25,773 57,734 Senior notes 44,349 44,270 Notes payable and other borrowings 24,469 6,673 Total borrowings $ 159,984 $ 205,870 1 Includes short-term FHLBC advances for both periods presented.

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	9 Months Ended
Equity Compensation Plans (Tables)	Sep. 30, 2020
Equity Compensation Plans
Summary of changes in nonvested shares of restricted share rights	September 30, 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 (149,952) 11.16 Forfeited - - Unvested at September 30 543,275 $ 13.17

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
Earnings Per Share (Tables)	Sep. 30, 2020
Earnings Per Share
Schedule of Earnings Per Share	Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic earnings per share: Weighted-average common shares outstanding 29,559,026 29,899,063 29,708,239 29,880,511 Net income $ 10,265 $ 12,173 $ 19,778 $ 29,919 Basic earnings per share $ 0.35 $ 0.41 $ 0.67 $ 1.00 Diluted earnings per share: Weighted-average common shares outstanding 29,559,026 29,899,063 29,708,239 29,880,511 Dilutive effect of unvested restricted awards 1 543,275 539,270 553,482 510,454 Diluted average common shares outstanding 30,102,301 30,438,333 30,261,721 30,390,965 Net Income $ 10,265 $ 12,173 $ 19,778 $ 29,919 Diluted earnings per share $ 0.34 $ 0.40 $ 0.65 $ 0.98 1 Includes the common stock equivalents for restricted share rights that are dilutive.

Regulatory & Capital Matters (T

Regulatory & Capital Matters (Tables)	9 Months Ended
Regulatory & Capital Matters (Tables)	Sep. 30, 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 September 30, 2020 Common equity tier 1 capital to risk weighted assets Consolidated $ 269,874 11.97 % $ 157,821 7.000 % N/A N/A Old Second Bank 319,662 14.24 157,137 7.000 $ 145,913 6.50 % Total capital to risk weighted assets Consolidated 323,041 14.33 236,701 10.500 N/A N/A Old Second Bank 347,723 15.49 235,706 10.500 224,482 10.00 Tier 1 capital to risk weighted assets Consolidated 294,874 13.08 191,623 8.500 N/A N/A Old Second Bank 319,662 14.24 190,809 8.500 179,585 8.00 Tier 1 capital to average assets Consolidated 294,874 10.07 117,130 4.00 N/A N/A Old Second Bank 319,662 10.90 117,307 4.00 146,634 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)	9 Months Ended
Fair Value Measurements (Tables)	Sep. 30, 2020
Fair Value Measurements
Schedule of balance of assets and liabilities which are measured at fair value on a recurring basis	September 30, 2020 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 4,134 $ - $ - $ 4,134 U.S. government agencies - 7,005 - 7,005 U.S. government agencies mortgage-backed - 18,219 - 18,219 States and political subdivisions - 244,987 4,790 249,777 Collateralized mortgage obligations - 57,013 - 57,013 Asset-backed securities - 81,585 - 81,585 Collateralized loan obligations - 30,688 - 30,688 Loans held-for-sale - 10,229 - 10,229 Mortgage servicing rights - - 5,010 5,010 Interest rate swap agreements - 10,506 - 10,506 Mortgage banking derivatives - 1,434 - 1,434 Total $ 4,134 $ 461,666 $ 9,800 $ 475,600 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 15,231 $ - $ 15,231 Total $ - $ 15,231 $ - $ 15,231 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	Nine Months Ended September 30, 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 (16) (2,463) Included in other comprehensive income (216) - Purchases, issuances, sales, and settlements Purchases 12,900 - Issuances - 1,813 Settlements (13,297) (275) Ending balance September 30, 2020 $ 4,790 $ 5,010 Nine Months Ended September 30, 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 (25) (2,384) Included in other comprehensive income 898 - Purchases, issuances, sales, and settlements Purchases 17,643 - Issuances - 906 Settlements (20,808) (518) Ending balance September 30, 2019 $ 5,873 $ 5,361
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 September 30, 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 $ 5,010 Discounted Cash Flow Discount Rate 11.0 - 15.0% 11.0 % Prepayment Speed 0.0 - 42.8% 15.4 % 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	September 30, 2020 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 12,200 $ 12,200 Other real estate owned, net 2 - - 2,686 2,686 Total $ - $ - $ 14,886 $ 14,886 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 $14.9 million and a valuation allowance of $2.7 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $1.6 million for the nine months ended September 30, 2020. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $2.7 million at September 30, 2020, which is made up of the outstanding balance of $4.3 million, net of a valuation allowance of $1.6 million and no participations. 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 million 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 at December 31, 2019, which is made up of the outstanding balance of $12.7 million, net of a valuation allowance of $6.7 million and a participation of $937,000 .

Fair Values of Financial Inst_2

Fair Values of Financial Instruments (Tables)	9 Months Ended
Fair Values of Financial Instruments (Tables)	Sep. 30, 2020
Fair Values of Financial Instruments
Schedule of carrying amount and estimated fair values of financial instruments	September 30, 2020 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 29,489 $ 29,489 $ 29,489 $ - $ - Interest earning deposits with financial institutions 283,651 283,651 283,651 - - Securities available-for-sale 448,421 448,421 4,134 439,497 4,790 FHLBC and FRBC stock 9,917 9,917 - 9,917 - Loans held-for-sale 10,229 10,229 - 10,229 - Net loans 1,997,409 2,013,415 - - 2,013,415 Interest rate swap agreements 10,506 10,506 - 10,506 - Interest receivable on securities and loans 9,706 9,706 - 9,706 - Financial liabilities: Noninterest bearing deposits $ 889,085 $ 889,085 $ 889,085 $ - $ - Interest bearing deposits 1,590,158 1,593,058 - 1,593,058 - Securities sold under repurchase agreements 59,268 59,268 - 59,268 - Other short-term borrowings 6,125 6,125 - 6,125 - Junior subordinated debentures 25,773 14,167 - 14,167 - Senior notes 44,349 44,799 44,799 - - Note payable and other borrowings 24,469 25,160 - 25,160 - Interest rate swap agreements 15,128 15,128 - 15,128 - Interest payable on deposits and borrowings 1,257 1,257 - 1,257 - 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 earning 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 $ 669,795 $ 669,795 $ - $ - Interest bearing deposits 1,456,954 1,457,832 - 1,457,832 - Securities sold under repurchase agreements 48,693 48,693 - 48,693 - Other short-term borrowings 48,500 48,500 - 48,500 - Junior subordinated debentures 57,734 51,188 33,614 17,574 - Senior notes 44,270 46,269 46,269 - - Note payable and other borrowings 6,673 7,003 - 7,003 - Interest rate swap agreements 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)	9 Months Ended
	Sep. 30, 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	September 30, 2020 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swaps 2 75,774 Other Assets 2,988 Other Liabilities 7,610 Total derivatives designated as hedging instruments 2,988 7,610 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 28 191,341 Other Assets 7,518 Other Liabilities 7,518 Interest rate lock commitments and forward contracts 250 92,154 Other Assets 1,434 Other Liabilities - Other contracts 4 26,683 Other Assets - Other Liabilities 103 Total derivatives not designated as hedging instruments 8,952 7,621 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 2 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 25 177,872 Other Assets 2,771 Other Liabilities 2,771 Interest rate lock commitments and forward contracts 87 23,667 Other Assets 250 Other Liabilities - Other contracts 4 28,176 Other Assets - Other Liabilities 53 Total derivatives not designated as hedging instruments 3,021 2,824
Schedule of financial instrument commitments	September 30, 2020 December 31, 2019 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ 329 $ 8,881 $ 9,210 $ 339 $ 9,612 $ 9,951 Commercial standby - - - - - - Performance standby 356 5,825 6,181 571 6,212 6,783 685 14,706 15,391 910 15,824 16,734 Non-borrower: Performance standby - 67 67 - 67 67 Total letters of credit $ 685 $ 14,773 $ 15,458 $ 910 $ 15,891 $ 16,801 Unused loan commitments: $ 93,875 $ 325,162 $ 419,037 $ 111,348 $ 320,120 $ 431,468

Basis of Presentation and Cha_2

Basis of Presentation and Changes in Significant Accounting Policies (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2020	Dec. 31, 2019
ACL for loans and leases	$ 300,000	$ 2,100,000	$ 8,000,000
Change in allowance for credit loss				$ 10,400,000
ACL on loans and leases	1,300,000	1,400,000	5,200,000
Reserve for unfunded commitments	980,000	$ 734,000	2,500,000
Retained earnings	228,825,000			228,825,000	$ 213,723,000
Goodwill	$ 18,600,000			$ 18,600,000
Accounting Standards Update 2016-13 \| Revision of Prior Period, Adjustment [Member]
ACL on loans and leases			5,900,000
Reserve for unfunded commitments			1,700,000
ACL increase from non-accretable purchase accounting adjustments			$ 2,500,000
Retained earnings					(3,700,000)
Deferred tax assets					$ 1,400,000

Basis of Presentation and Cha_3

Basis of Presentation and Changes in Significant Accounting Policies - Dividend (Details) - USD ($)	Nov. 09, 2020	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Oct. 19, 2020
Goodwill and Core Deposit Intangible
Amortization of core deposit intangible		$ 122,000		$ 157,000	$ 374,000	$ 410,000
Subsequent Events
Dividends Payable, Amount Per Share							$ 0.01
Payments of Dividends			$ 30,000,000
Subsequent Event
Subsequent Events
Dividends Payable, Amount Per Share							$ 0.01
Payments of Dividends	$ 295,000

Acquisitions (Details)

Acquisitions (Details) $ in Millions	Apr. 20, 2018USD ($)item	Sep. 30, 2020USD ($)
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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020	Dec. 31, 2019
Securities
Pretax realized losses on sale of available-for-sale securities	$ 1	$ 378	$ 42	$ 956
FHLB and FRB Stock
FHLBC stock	3,700		3,700		$ 3,700	$ 3,700
FRB stock	$ 6,200		$ 6,200		$ 6,200	$ 6,200

Securities - Amortized Cost and

Securities - Amortized Cost and Fair Value (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)item	Sep. 30, 2019USD ($)	Dec. 31, 2019USD ($)
Securities Available-for-Sale
Amortized Cost		$ 428,439		$ 475,146
Gross Unrealized Gains		23,365		13,285
Gross Unrealized Losses		(3,383)		(3,783)
Fair Value		448,421		484,648
Accrued interest receivable		2,600		3,200
Other disclosures
Purchases		14,681	$ 136,096
Sales	$ 57,228	$ 18,006	$ 177,824
Number of originators \| item		1
Securities pledged to secure deposits and for other purposes		$ 353,200		320,800
US Treasury Securities [Member]
Securities Available-for-Sale
Amortized Cost		4,013		4,010
Gross Unrealized Gains		121		26
Fair Value		4,134		4,036
US Government Corporations and Agencies Securities [Member]
Securities Available-for-Sale
Amortized Cost		7,169		8,502
Gross Unrealized Losses		(164)		(165)
Fair Value		7,005		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		232,416		240,399
Gross Unrealized Gains		18,316		11,207
Gross Unrealized Losses		(955)		(2,431)
Fair Value		249,777		249,175
Collateralized Mortgage Obligations [Member]
Securities Available-for-Sale
Amortized Cost		54,597		57,059
Gross Unrealized Gains		2,839		963
Gross Unrealized Losses		(423)		(38)
Fair Value		57,013		57,984
Asset-backed Securities [Member]
Securities Available-for-Sale
Amortized Cost		81,986		82,114
Gross Unrealized Gains		905		617
Gross Unrealized Losses		(1,306)		(887)
Fair Value		81,585		81,844
FFEL
Other disclosures
Asset-backed securities		$ 55,900
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		$ 5,100
Percentage of total added credit enhancement in the form of overcollaterization and/or subordination of outstanding principal		9
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		$ 31,202		66,898
Gross Unrealized Gains		19		29
Gross Unrealized Losses		(533)		(243)
Fair Value		30,688		$ 66,684
Mortgage Backed Securities, Issued by US Government Agencies [Member]
Securities Available-for-Sale
Amortized Cost		17,056
Gross Unrealized Gains		1,165
Gross Unrealized Losses		(2)
Fair Value		18,219
Towd Point Mortgage Trust
Securities Available-for-Sale
Amortized Cost		33,242
Fair Value		$ 35,477
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	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Securities Available-for-Sale, Amortized Cost
Due in one year or less	$ 413
Due after one year through five years	6,056
Due after five years through ten years	28,014
Due after ten years	209,115
Debt securities excluding securities not due at a single maturity date	243,598
Total	$ 428,439	$ 475,146
Securities Available-for-Sale, Weighted Average Yield
Due in one year or less (as a percent)	2.01%
Due after one year through five years (as a percent)	2.11%
Due after five years through ten years (as a percent)	2.31%
Due after ten years (as a percent)	3.03%
Debt securities (as a percent)	2.92%
Total (as a percent)	2.62%
Securities Available-for-Sale, Fair Value
Due in one year or less	$ 415
Due after one year through five years	6,309
Due after five years through ten years	28,993
Due after ten years	225,199
Debt securities	260,916
Fair Value	448,421	484,648
Collateralized Mortgage Obligations [Member]
Securities Available-for-Sale, Amortized Cost
Total	54,597	57,059
Securities Available-for-Sale, Fair Value
Fair Value	57,013	57,984
Asset-backed Securities [Member]
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	81,986
Total	$ 81,986	82,114
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	1.51%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date	$ 81,585
Fair Value	81,585	81,844
Collateralized loan obligations
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	31,202
Total	$ 31,202	66,898
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	2.12%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date	$ 30,688
Fair Value	30,688	$ 66,684
Mortgage-backed and collateralized mortgage obligations
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	$ 71,653
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	3.08%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date	$ 75,232

Securities - Unrealized Loss Po

Securities - Unrealized Loss Positions (Details)	Sep. 30, 2020USD ($)security	Dec. 31, 2019USD ($)security
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position \| security	11	19
Greater than 12 months in an unrealized loss position \| security	13	15
Total	24	34
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 971,000	$ 2,602,000
Greater than 12 months in an unrealized loss position	2,412,000	1,181,000
Total	3,383,000	3,783,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	38,266,000	129,582,000
Greater than 12 months in an unrealized loss position	65,470,000	45,240,000
Total	$ 103,736,000	$ 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	$ 164,000	$ 165,000
Total	164,000	165,000
Securities Available-for-Sale, Fair Value
Greater than 12 months in an unrealized loss position	7,005,000	8,337,000
Total	$ 7,005,000	$ 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	1	3
Greater than 12 months in an unrealized loss position \| security		2
Total	1	5
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 2,000	$ 10,000
Greater than 12 months in an unrealized loss position		9,000
Total	2,000	19,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	260,000	3,018,000
Greater than 12 months in an unrealized loss position		843,000
Total	$ 260,000	$ 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		6
Greater than 12 months in an unrealized loss position \| security	1	2
Total	1	8
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position		$ 1,665,000
Greater than 12 months in an unrealized loss position	$ 955,000	766,000
Total	955,000	2,431,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position		41,043,000
Greater than 12 months in an unrealized loss position	3,872,000	6,593,000
Total	$ 3,872,000	$ 47,636,000
Collateralized Mortgage Obligations [Member]
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position \| security	4	2
Greater than 12 months in an unrealized loss position \| security	1	2
Total	5	4
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 421,000	$ 26,000
Greater than 12 months in an unrealized loss position	2,000	12,000
Total	423,000	38,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	8,027,000	9,054,000
Greater than 12 months in an unrealized loss position	279,000	1,209,000
Total	$ 8,306,000	$ 10,263,000
Asset-backed Securities [Member]
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position \| security	5	4
Greater than 12 months in an unrealized loss position \| security	3	1
Total	8	5
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 425,000	$ 839,000
Greater than 12 months in an unrealized loss position	881,000	48,000
Total	1,306,000	887,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	22,603,000	54,540,000
Greater than 12 months in an unrealized loss position	33,069,000	3,238,000
Total	$ 55,672,000	$ 57,778,000
Collateralized loan obligations
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position \| security	1	4
Greater than 12 months in an unrealized loss position \| security	4	4
Total	5	8
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 123,000	$ 62,000
Greater than 12 months in an unrealized loss position	410,000	181,000
Total	533,000	243,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	7,376,000	21,927,000
Greater than 12 months in an unrealized loss position	21,245,000	25,020,000
Total	$ 28,621,000	$ 46,947,000

Securities - Realized Gain (Los

Securities - Realized Gain (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Securities
Sales		$ 57,228	$ 18,006	$ 177,824
Gross realized gains on securities		3,841	17	5,432
Gross realized losses on securities	$ (1)	(378)	(42)	(956)
Securities (losses) gains, net	$ (1)	3,463	(25)	4,476
Related tax (expense) benefit		$ (973)	$ 7	$ (1,257)
Effective tax rate applied (as a percent)	0.00%	28.10%	28.00%	28.10%
Available-for-sale Securities Pledged as Collateral	$ 353,200		$ 353,200		$ 320,800

Loans and Allowance for Credi_3

Loans and Allowance for Credit Losses on Loans - Major Classifications (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Loans
Total loans, excluding deferred loan costs and PCI loans	$ 2,030,327	$ 1,920,425
Net deferred loan fees		1,786
Total loans, excluding PCI loans	2,030,327	1,922,211
Total Loans	2,030,327	1,930,812
Net loans	1,997,409	1,911,023
Allowance for credit losses	(32,918)	(19,789)
Total Loans	2,030,327	1,930,812
Loans and leases receivable, accrued interest receivable	7,100	6,500
PCI
Loans
Total 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	436,277	332,842
Total loans, excluding PCI loans		332,842
Net loans	436,277
Total Loans	436,277
Leases
Loans
Total loans, excluding deferred loan costs and PCI loans	133,676	119,751
Total loans, excluding PCI loans		119,751
Net loans	133,676
Total Loans	133,676
Commercial real estate - Investor
Loans
Total loans, excluding deferred loan costs and PCI loans	548,970	520,095
Total loans, excluding PCI loans		520,095
Net loans	548,970
Total Loans	548,970
Commercial real estate - Owner occupied
Loans
Total loans, excluding deferred loan costs and PCI loans	335,978	345,504
Total loans, excluding PCI loans		345,504
Net loans	335,978
Construction
Loans
Total loans, excluding deferred loan costs and PCI loans	91,856	69,617
Total loans, excluding PCI loans		69,617
Net loans	91,856
Real estate - Investor
Loans
Total loans, excluding deferred loan costs and PCI loans	61,923	71,105
Total loans, excluding PCI loans		71,105
Net loans	61,923
Real estate - Owner occupied
Loans
Total loans, excluding deferred loan costs and PCI loans	114,283	136,023
Total loans, excluding PCI loans		136,023
Net loans	114,283
Multifamily
Loans
Total loans, excluding deferred loan costs and PCI loans	188,398	189,773
Total loans, excluding PCI loans		189,773
Net loans	188,398
HELOC
Loans
Total loans, excluding deferred loan costs and PCI loans	85,882	91,605
Total loans, excluding PCI loans		91,605
Net loans	85,882
Total Loans	85,882
HELOC - Purchased
Loans
Total loans, excluding deferred loan costs and PCI loans	22,312	31,852
Total loans, excluding PCI loans		31,852
Net loans	22,312
Total Loans	22,312
Other 1
Loans
Total loans, excluding deferred loan costs and PCI loans	10,772	12,258
Total loans, excluding PCI loans		$ 14,044
Net loans	$ 10,772

Loans and Allowance for Credi_4

Loans and Allowance for Credit Losses on Loans - Major Classifications - Loan Concentrations (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 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	71.40%

Loans and Allowance for Credi_5

Loans and Allowance for Credit Losses on Loans - Collateral dependent loans (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	$ 30,516
ACL Allocation	32,918	$ 19,789
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	25,155
Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	1,543
Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	3,808
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	10
Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	2,707
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	1,607
Commercial \| Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	1,543
Commercial \| Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	64
Commercial \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	65
Leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	3,744
Leases \| Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	3,744
Leases \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	911
Commercial real estate - Investor
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	4,580
Commercial real estate - Investor \| Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	4,580
Commercial real estate - Investor \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	92
Commercial real estate - Owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	10,846
Commercial real estate - Owner occupied \| Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	10,846
Commercial real estate - Owner occupied \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	198
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	1,883
Construction \| Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	1,883
Construction \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	944
Real estate - Investor
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	935
Real estate - Investor \| Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	935
Real estate - Owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	3,559
Real estate - Owner occupied \| Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	3,559
Real estate - Owner occupied \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	11
Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	2,305
Multifamily \| Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	2,305
Multifamily \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	384
HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	1,047
HELOC \| Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	1,047
HELOC \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	96
Other 1
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	10
Other 1 \| Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	10
Other 1 \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	$ 6

Loans and Allowance for Credi_6

Loans and Allowance for Credit Losses on Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Allowance for loan losses:
Beginning Balance	$ 31,273	$ 19,372	$ 19,789	$ 19,006
Provision (release)	1,280	550	8,174	1,450
Charge-offs	451	397	2,258	1,216
Recoveries	816	126	1,334	411
Ending Balance	32,918	19,651	32,918	19,651
Loans:
Ending balance	2,030,327		2,030,327		$ 1,930,812
Ending balance	2,030,327		2,030,327		$ 1,930,812
Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	5,879		5,879
Commercial
Allowance for loan losses:
Beginning Balance	2,292	3,377	3,015	2,832
Provision (release)	98	(49)	(250)	539
Charge-offs	5	20	124	99
Recoveries	12	10	48	46
Ending Balance	2,397	3,318	2,397	3,318
Loans:
Ending balance	436,277		436,277
Commercial \| Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	(292)		(292)
Leases
Allowance for loan losses:
Beginning Balance	2,012	961	1,262	734
Provision (release)	1,965	66	2,214	293
Charge-offs	119	47	119	47
Ending Balance	3,858	980	3,858	980
Loans:
Ending balance	133,676		133,676
Leases \| Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	501		501
Commercial real estate - Investor
Allowance for loan losses:
Beginning Balance	7,725	6,307	6,218	5,492
Provision (release)	783	(431)	3,009	496
Charge-offs		159	15	303
Recoveries	102	12	139	44
Ending Balance	8,610	5,729	8,610	5,729
Loans:
Ending balance	548,970		548,970
Commercial real estate - Investor \| Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	(741)		(741)
Commercial real estate - Owner occupied
Allowance for loan losses:
Beginning Balance	2,521	2,973	3,678	3,835
Provision (release)	(535)	428	556	(308)
Charge-offs	145		1,546	129
Recoveries	565		566	3
Ending Balance	2,406	3,401	2,406	3,401
Commercial real estate - Owner occupied \| Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	(848)		(848)
Real estate - construction
Allowance for loan losses:
Beginning Balance	4,431	820	513	969
Provision (release)	406	(7)	2,990	(156)
Charge-offs	60	7	60	8
Recoveries	1		1	1
Ending Balance	4,778	806	4,778	806
Real estate - construction \| Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	1,334		1,334
Real estate - Investor
Allowance for loan losses:
Beginning Balance	2,217	586	601	629
Provision (release)	(290)	(6)	564	(62)
Charge-offs	3	1	8	7
Recoveries	18	7	45	26
Ending Balance	1,942	586	1,942	586
Real estate - Investor \| Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	740		740
Real estate - Owner occupied
Allowance for loan losses:
Beginning Balance	3,204	1,204	1,257	1,302
Provision (release)	(508)	62	30	(61)
Charge-offs		2	43	14
Recoveries	25	15	157	52
Ending Balance	2,721	1,279	2,721	1,279
Real estate - Owner occupied \| Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	1,320		1,320
Multifamily
Allowance for loan losses:
Beginning Balance	3,518	1,230	1,444	1,143
Provision (release)	(301)	(78)	41	1
Recoveries				8
Ending Balance	3,217	1,152	3,217	1,152
Multifamily \| Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	1,732		1,732
HELOC
Allowance for loan losses:
Beginning Balance	2,255	1,304	1,161	1,449
Provision (release)	(359)	(79)	(902)	(232)
Charge-offs		19	85	69
Recoveries	52	21	248	79
Ending Balance	1,948	1,227	1,948	1,227
Loans:
Ending balance	85,882		85,882
HELOC \| Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	1,526		1,526
HELOC - Purchased
Allowance for loan losses:
Beginning Balance	398	38
Provision (release)	(43)	(2)	355	265
Charge-offs	66		66	229
Ending Balance	289	36	289	36
Loans:
Ending balance	22,312		22,312
Other
Allowance for loan losses:
Beginning Balance	700	572	640	621
Provision (release)	64	646	(433)	675
Charge-offs	53	142	192	311
Recoveries	41	61	130	152
Ending Balance	752	$ 1,137	752	$ 1,137
Other \| Accounting Standards Update 2016-13
Allowance for loan losses:
Ending Balance	607		607
Unfunded Loan Commitment
Allowance for loan losses:
Ending Balance	$ 4,000		$ 4,000

Loans and Allowance for Credi_7

Loans and Allowance for Credit Losses on Loans - Aging Analysis (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)item	Dec. 31, 2019USD ($)
Aged analysis of past due loans
Total Past Due	$ 18,694
Current	2,011,633
Total Past Due Including PCI loans		$ 17,196
Current including PCI Loans		1,898,221
Non accrual including PCI Loans	20,076	15,395
Total loans, excluding PCI loans	2,030,327	1,922,211
Total Loans	2,030,327	1,930,812
Total loans, including deferred loan loan costs and PCI	1,997,409	1,911,023
Recorded Investment 90 days or Greater Past Due and Accruing	422	2,628
Total Loans	$ 2,030,327	1,930,812
Number of loan modifications, CARES Act \| item	468
Number of loan modifications with deferral request, CARES Act \| item	96
Number of loan modifications resumed payments, CARES Act \| item	372
Pre-modification, CARES Act	$ 226,200
Post-modification, CARES Act	54,100
Loan modification CARES Act, resumed payments	172,100
30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	5,365
Total Past Due Including PCI loans		9,379
60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	752
Total Past Due Including PCI loans		5,272
90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	12,577
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
Total 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	20,076	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	1,424	4,299
Current	434,853	328,399
Nonaccrual	1,605	144
Total loans, excluding PCI loans		332,842
Total loans, including deferred loan loan costs and PCI	436,277
Recorded Investment 90 days or Greater Past Due and Accruing		2,132
Total Loans	436,277
Commercial \| 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	56	1,271
Commercial \| 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due		925
Commercial \| 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	1,368	2,103
Leases
Aged analysis of past due loans
Total Past Due	508	443
Current	133,168	118,979
Nonaccrual	1,910	329
Total loans, excluding PCI loans		119,751
Total loans, including deferred loan loan costs and PCI	133,676
Recorded Investment 90 days or Greater Past Due and Accruing	169	128
Total Loans	133,676
Leases \| 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	64	362
Leases \| 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	105
Leases \| 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	339	81
Commercial real estate - Investor
Aged analysis of past due loans
Total Past Due	1,789	1,064
Current	547,181	517,336
Nonaccrual	2,021	1,695
Total loans, excluding PCI loans		520,095
Total loans, including deferred loan loan costs and PCI	548,970
Recorded Investment 90 days or Greater Past Due and Accruing		348
Total Loans	548,970
Commercial real estate - Investor \| 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	6	626
Commercial real estate - Investor \| 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	128	95
Commercial real estate - Investor \| 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	1,655	343
Commercial real estate - Owner occupied
Aged analysis of past due loans
Total Past Due		3,495
Current		336,829
Nonaccrual	8,428	5,180
Total loans, excluding PCI loans		345,504
Total loans, including deferred loan loan costs and PCI	335,978
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		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
Current	91,856
Total Loans	91,856
Real estate - Investor
Aged analysis of past due loans
Total Past Due		266
Current		70,051
Nonaccrual	935	788
Total loans, excluding PCI loans		71,105
Total loans, including deferred loan loan costs and PCI	61,923
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	387
Current	61,536
Total Loans	61,923
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	63
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	324
Real estate - Owner occupied
Aged analysis of past due loans
Total Past Due		4,801
Current		128,650
Nonaccrual	3,229	2,572
Total loans, excluding PCI loans		136,023
Total loans, including deferred loan loan costs and PCI	114,283
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	1,111
Current	113,172
Recorded Investment 90 days or Greater Past Due and Accruing	44
Total Loans	114,283
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	220
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	500
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	391
Real estate - commercial \| Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Aged analysis of past due loans
Total Past Due	9,583
Current	326,395
Recorded Investment 90 days or Greater Past Due and Accruing	207
Total Loans	335,978
Real estate - commercial \| Commercial Real Estate, Owner Occupied General Purpose Loan [Member] \| 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	1,965
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	7,618
Real estate - commercial \| Real estate - construction \| Construction Real Estate, Homebuilder Loan [Member]
Aged analysis of past due loans
Total Past Due	14
Current	10,758
Total Loans	10,772
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	14
Multifamily
Aged analysis of past due loans
Total Past Due		1,710
Current		187,995
Nonaccrual	895	68
Total loans, excluding PCI loans		189,773
Total loans, including deferred loan loan costs and PCI	188,398
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	3,371
Current	185,027
Total Loans	188,398
Multifamily \| Commercial Real Estate, Retail Properties Loan [Member] \| 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	2,664
Multifamily \| Commercial Real Estate, Retail Properties Loan [Member] \| 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	707
HELOC
Aged analysis of past due loans
Total Past Due	507	803
Current	85,375	89,438
Nonaccrual	1,047	1,364
Total loans, excluding PCI loans		91,605
Total loans, including deferred loan loan costs and PCI	85,882
Recorded Investment 90 days or Greater Past Due and Accruing	2	20
Total Loans	85,882
HELOC \| 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	313	735
HELOC \| 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	19	50
HELOC \| 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	175	18
HELOC - Purchased
Aged analysis of past due loans
Current	22,312	31,672
Nonaccrual		180
Total loans, excluding PCI loans		31,852
Total loans, including deferred loan loan costs and PCI	22,312
Total Loans	22,312
Other
Aged analysis of past due loans
Total Past Due		28
Current		13,997
Nonaccrual	$ 6	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
	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non accrual including PCI Loans	$ 20,076,000	$ 15,395,000
Nonaccrual with no ACL including PCI	15,819,000	11,749,000
Interest on nonacccrual loans	93,000
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	1,605,000	144,000
Nonaccrual with no ACL	50,000
Leases
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	1,910,000	329,000
Nonaccrual with no ACL	1,910,000	70,000
Commercial real estate - Investor
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	2,021,000	1,695,000
Nonaccrual with no ACL	2,021,000	1,590,000
Commercial real estate - Owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	8,428,000	5,180,000
Nonaccrual with no ACL	5,944,000	2,366,000
Real estate - construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual		93,000
Nonaccrual with no ACL		93,000
Real estate - Investor
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	935,000	788,000
Nonaccrual with no ACL	935,000	788,000
Real estate - Owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	3,229,000	2,572,000
Nonaccrual with no ACL	3,229,000	2,475,000
Multifamily
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	895,000	68,000
Nonaccrual with no ACL	895,000	68,000
HELOC
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	1,047,000	1,364,000
Nonaccrual with no ACL	835,000	1,154,000
HELOC - Purchased
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual		180,000
Nonaccrual with no ACL		180,000
Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	6,000	19,000
Nonaccrual with no ACL		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	20,076,000	12,432,000
Nonaccrual with no ACL	$ 15,819,000	$ 8,786,000

Loans and Allowance for Credi_9

Loans and Allowance for Credit Losses on Loans - Credit Quality (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Loans by risk rating
2020	$ 469,211,000
2019	454,716,000
2018	297,078,000
2017	213,274,000
2016	153,838,000
Prior	150,243,000
Revolving Loans	291,967,000
Total loans, excluding PCI loans	2,030,327,000	$ 1,922,211,000
Total Loans	2,030,327,000	1,930,812,000
Net loans	1,997,409,000	1,911,023,000
Total Loans	2,030,327,000	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	462,620,000
2019	441,751,000
2018	284,526,000
2017	207,644,000
2016	145,944,000
Prior	139,969,000
Revolving Loans	283,056,000
Total Loans		1,863,146,000
Net loans	1,965,510,000
Special Mention [Member]
Loans by risk rating
2020	3,223,000
2019	2,363,000
2018	2,307,000
2017	2,706,000
2016	5,356,000
Prior	16,000
Revolving Loans	6,189,000
Total Loans		26,886,000
Net loans	22,160,000
Substandard [Member]
Loans by risk rating
2020	3,368,000
2019	10,602,000
2018	10,245,000
2017	2,924,000
2016	2,538,000
Prior	10,258,000
Revolving Loans	2,722,000
Total Loans		40,780,000
Net loans	42,657,000
PCI
Loans by risk rating
Total Loans		8,601,000
PCI \| Pass [Member]
Loans by risk rating
Total Loans		573,000
PCI \| Special Mention [Member]
Loans by risk rating
Total Loans		261,000
PCI \| Substandard [Member]
Loans by risk rating
Total Loans		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
2020	164,290,000
2019	44,118,000
2018	18,672,000
2017	7,228,000
2016	3,100,000
Prior	2,784,000
Revolving Loans	196,085,000
Total loans, excluding PCI loans		332,842,000
Net loans	436,277,000
Total Loans	436,277,000
Commercial \| Pass [Member]
Loans by risk rating
2020	161,595,000
2019	42,502,000
2018	16,568,000
2017	7,215,000
2016	3,096,000
Prior	2,755,000
Revolving Loans	188,270,000
Total loans, excluding PCI loans		307,948,000
Net loans	422,001,000
Commercial \| Special Mention [Member]
Loans by risk rating
2020	443,000
2019	1,564,000
2018	68,000
2017	13,000
2016	4,000
Prior	16,000
Revolving Loans	6,176,000
Total loans, excluding PCI loans		13,206,000
Net loans	8,284,000
Commercial \| Substandard [Member]
Loans by risk rating
2020	2,252,000
2019	52,000
2018	2,036,000
Prior	13,000
Revolving Loans	1,639,000
Total loans, excluding PCI loans		11,688,000
Net loans	5,992,000
Real estate - commercial \| Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Loans by risk rating
Total Loans	335,978,000
Real estate - commercial \| Real estate - construction \| Construction Real Estate, Homebuilder Loan [Member]
Loans by risk rating
Total Loans	10,772,000
Real estate - residential
Loans by risk rating
Mortgage loans in process of foreclosure	541,000	831,000
Leases
Loans by risk rating
2020	39,333,000
2019	57,977,000
2018	19,941,000
2017	7,819,000
2016	6,930,000
Prior	1,676,000
Total loans, excluding PCI loans		119,751,000
Net loans	133,676,000
Total Loans	133,676,000
Leases \| Pass [Member]
Loans by risk rating
2020	39,333,000
2019	55,923,000
2018	18,937,000
2017	7,755,000
2016	6,463,000
Prior	1,196,000
Total loans, excluding PCI loans		119,045,000
Net loans	129,607,000
Leases \| Special Mention [Member]
Loans by risk rating
2019	799,000
Total loans, excluding PCI loans		377,000
Net loans	799,000
Leases \| Substandard [Member]
Loans by risk rating
2019	1,255,000
2018	1,004,000
2017	64,000
2016	467,000
Prior	480,000
Total loans, excluding PCI loans		329,000
Net loans	3,270,000
Commercial real estate - Investor
Loans by risk rating
2020	130,413,000
2019	172,286,000
2018	92,371,000
2017	70,566,000
2016	57,110,000
Prior	25,356,000
Revolving Loans	868,000
Total loans, excluding PCI loans		520,095,000
Net loans	548,970,000
Total Loans	548,970,000
Commercial real estate - Investor \| Pass [Member]
Loans by risk rating
2020	128,123,000
2019	168,503,000
2018	92,140,000
2017	70,566,000
2016	56,666,000
Prior	24,362,000
Revolving Loans	868,000
Total loans, excluding PCI loans		510,640,000
Net loans	541,228,000
Commercial real estate - Investor \| Special Mention [Member]
Loans by risk rating
2020	1,816,000
2018	231,000
2016	99,000
Total loans, excluding PCI loans		4,529,000
Net loans	2,146,000
Commercial real estate - Investor \| Substandard [Member]
Loans by risk rating
2020	474,000
2019	3,783,000
2016	345,000
Prior	994,000
Total loans, excluding PCI loans		4,926,000
Net loans	5,596,000
Commercial real estate - Owner occupied
Loans by risk rating
2020	56,217,000
2019	57,156,000
2018	80,207,000
2017	49,764,000
2016	57,849,000
Prior	33,702,000
Revolving Loans	1,083,000
Total loans, excluding PCI loans		345,504,000
Net loans	335,978,000
Commercial real estate - Owner occupied \| Pass [Member]
Loans by risk rating
2020	55,107,000
2019	54,702,000
2018	78,655,000
2017	45,928,000
2016	51,895,000
Prior	30,174,000
Revolving Loans	1,083,000
Total loans, excluding PCI loans		330,891,000
Net loans	317,544,000
Commercial real estate - Owner occupied \| Special Mention [Member]
Loans by risk rating
2020	925,000
2018	464,000
2017	2,141,000
2016	5,246,000
Total loans, excluding PCI loans		6,657,000
Net loans	8,776,000
Commercial real estate - Owner occupied \| Substandard [Member]
Loans by risk rating
2020	185,000
2019	2,454,000
2018	1,088,000
2017	1,695,000
2016	708,000
Prior	3,528,000
Total loans, excluding PCI loans		7,956,000
Net loans	9,658,000
Construction
Loans by risk rating
2020	28,221,000
2019	43,360,000
2018	9,022,000
2017	589,000
2016	245,000
Prior	1,283,000
Revolving Loans	9,136,000
Total loans, excluding PCI loans		69,617,000
Net loans	91,856,000
Construction \| Pass [Member]
Loans by risk rating
2020	28,182,000
2019	40,302,000
2018	6,972,000
2017	589,000
2016	245,000
Prior	1,283,000
Revolving Loans	9,136,000
Total loans, excluding PCI loans		69,355,000
Net loans	86,709,000
Construction \| Special Mention [Member]
Loans by risk rating
2020	39,000
Net loans	39,000
Construction \| Substandard [Member]
Loans by risk rating
2019	3,058,000
2018	2,050,000
Total loans, excluding PCI loans		262,000
Net loans	5,108,000
Real estate - Investor
Loans by risk rating
2020	10,837,000
2019	14,632,000
2018	12,335,000
2017	8,488,000
2016	2,657,000
Prior	12,458,000
Revolving Loans	516,000
Total loans, excluding PCI loans		71,105,000
Net loans	61,923,000
Real estate - Investor \| Commercial Real Estate, Non Owner Occupied General Purpose Loan [Member]
Loans by risk rating
Total Loans	61,923,000
Real estate - Investor \| Pass [Member]
Loans by risk rating
2020	10,497,000
2019	14,632,000
2018	11,721,000
2017	8,488,000
2016	2,558,000
Prior	11,985,000
Revolving Loans	516,000
Total loans, excluding PCI loans		69,715,000
Net loans	60,397,000
Real estate - Investor \| Substandard [Member]
Loans by risk rating
2020	340,000
2018	614,000
2016	99,000
Prior	473,000
Total loans, excluding PCI loans		1,390,000
Net loans	1,526,000
Real estate - Owner occupied
Loans by risk rating
2020	8,795,000
2019	23,545,000
2018	12,506,000
2017	19,017,000
2016	11,251,000
Prior	36,487,000
Revolving Loans	2,682,000
Total loans, excluding PCI loans		136,023,000
Net loans	114,283,000
Real estate - Owner occupied \| Commercial Real Estate, Non Owner Occupied Special Purpose Loan [Member]
Loans by risk rating
Total Loans	114,283,000
Real estate - Owner occupied \| Pass [Member]
Loans by risk rating
2020	8,747,000
2019	23,545,000
2018	12,094,000
2017	18,796,000
2016	10,716,000
Prior	33,867,000
Revolving Loans	2,682,000
Total loans, excluding PCI loans		132,258,000
Net loans	110,447,000
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
2020	48,000
2018	412,000
2017	221,000
2016	535,000
Prior	2,620,000
Total loans, excluding PCI loans		3,631,000
Net loans	3,836,000
Multifamily
Loans by risk rating
2020	27,925,000
2019	37,940,000
2018	49,522,000
2017	46,969,000
2016	13,269,000
Prior	12,571,000
Revolving Loans	202,000
Total loans, excluding PCI loans		189,773,000
Net loans	188,398,000
Multifamily \| Commercial Real Estate, Retail Properties Loan [Member]
Loans by risk rating
Total Loans	188,398,000
Multifamily \| Pass [Member]
Loans by risk rating
2020	27,856,000
2019	37,940,000
2018	45,291,000
2017	45,516,000
2016	13,143,000
Prior	10,514,000
Revolving Loans	202,000
Total loans, excluding PCI loans		187,560,000
Net loans	180,462,000
Multifamily \| Special Mention [Member]
Loans by risk rating
Total loans, excluding PCI loans		1,710,000
Multifamily \| Substandard [Member]
Loans by risk rating
2020	69,000
2018	2,687,000
2017	901,000
2016	119,000
Prior	2,057,000
Total loans, excluding PCI loans		503,000
Net loans	5,833,000
Multifamily \| Real estate - construction \| Special Mention [Member]
Loans by risk rating
2018	1,544,000
2017	552,000
2016	7,000
Net loans	2,103,000
HELOC
Loans by risk rating
2020	2,185,000
2019	2,287,000
2018	1,785,000
2017	2,508,000
2016	959,000
Prior	1,290,000
Revolving Loans	74,868,000
Total loans, excluding PCI loans		91,605,000
Net loans	85,882,000
Total Loans	85,882,000
HELOC \| Pass [Member]
Loans by risk rating
2020	2,185,000
2019	2,287,000
2018	1,697,000
2017	2,471,000
2016	694,000
Prior	1,197,000
Revolving Loans	73,772,000
Total loans, excluding PCI loans		89,804,000
Net loans	84,303,000
HELOC \| Special Mention [Member]
Loans by risk rating
Revolving Loans	13,000
Total loans, excluding PCI loans		12,000
Net loans	13,000
HELOC \| Substandard [Member]
Loans by risk rating
2018	88,000
2017	37,000
2016	265,000
Prior	93,000
Revolving Loans	1,083,000
Total loans, excluding PCI loans		1,789,000
Net loans	1,566,000
HELOC - Purchased
Loans by risk rating
Prior	22,312,000
Total loans, excluding PCI loans		31,852,000
Net loans	22,312,000
Total Loans	22,312,000
HELOC - Purchased \| Pass [Member]
Loans by risk rating
Prior	22,312,000
Total loans, excluding PCI loans		31,672,000
Net loans	22,312,000
HELOC - Purchased \| Substandard [Member]
Loans by risk rating
Total loans, excluding PCI loans		180,000
Other 1
Loans by risk rating
2020	995,000
2019	1,415,000
2018	717,000
2017	326,000
2016	468,000
Prior	324,000
Revolving Loans	6,527,000
Total loans, excluding PCI loans		14,044,000
Net loans	10,772,000
Other 1 \| Pass [Member]
Loans by risk rating
2020	995,000
2019	1,415,000
2018	451,000
2017	320,000
2016	468,000
Prior	324,000
Revolving Loans	6,527,000
Total loans, excluding PCI loans		13,685,000
Net loans	10,500,000
Other 1 \| Substandard [Member]
Loans by risk rating
2018	266,000
2017	6,000
Total loans, excluding PCI loans		$ 359,000
Net loans	$ 272,000

Loans and Allowance for Cred_10

Loans and Allowance for Credit Losses on Loans - TDR (Details)	3 Months Ended				9 Months Ended
	Sep. 30, 2020USD ($)contract	Mar. 31, 2020USD ($)	Sep. 30, 2019USD ($)contract	Mar. 31, 2019USD ($)	Sep. 30, 2020USD ($)contract	Sep. 30, 2019USD ($)contract	Dec. 31, 2019USD ($)
Troubled debt restructurings - modified during the period
# of contracts \| contract	1		1		3	7
Pre-modification recorded investment	$ 154,000		$ 1,159,000		$ 410,000	$ 1,694,000
Post-modification recorded investment	153,000		$ 1,122,000		404,000	$ 1,546,000
TDR's defaulted
Pre-modification outstanding recorded investment during the period		$ 0		$ 0
Other information
Total Past Due	18,694,000				18,694,000
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
Residential Owner Occupied Loan [Member] \| Home Affordable Modification Program [Member]
Troubled debt restructurings - modified during the period
# of contracts \| contract						3
Pre-modification recorded investment						$ 399,000
Post-modification recorded investment						$ 297,000
Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Troubled debt restructurings - modified during the period
# of contracts \| contract			1			2
Pre-modification recorded investment			$ 1,159,000			$ 1,217,000
Post-modification recorded investment			$ 1,122,000			$ 1,177,000
Real estate - commercial \| Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Other information
Total Past Due	$ 9,583,000				$ 9,583,000
Real estate - residential \| Residential Owner Occupied Loan [Member] \| Home Affordable Modification Program [Member]
Troubled debt restructurings - modified during the period
# of contracts \| contract	1				3
Pre-modification recorded investment	$ 154,000				$ 410,000
Post-modification recorded investment	153,000				404,000
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	1,424,000				1,424,000		$ 4,299,000
90 Days or Greater Past Due
Other information
Total Past Due	12,577,000				12,577,000
90 Days or Greater Past Due \| Real estate - commercial \| Commercial Real Estate, Owner Occupied General Purpose Loan [Member]
Other information
Total Past Due	7,618,000				7,618,000
90 Days or Greater Past Due \| Commercial
Other information
Total Past Due	$ 1,368,000				$ 1,368,000		$ 2,103,000

Other Real Estate Owned (Detail

Other Real Estate Owned (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Other Real Estate Owned (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
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			898	305
Less: Property disposals, net of gains/losses			2,952	2,390
Less: Period valuation adjustments			264	399
Less: Other adjustments				9
Balance at end of period	$ 2,686	$ 4,682	2,686	4,682
Activity in the valuation allowance
Balance at beginning of period			6,712	8,027
Provision for unrealized losses	46	203	264	399
Reductions taken on sales			(5,363)	(960)
Balance at end of period	1,613	7,466	1,613	7,466
Expenses related to foreclosed assets, net of lease revenue
Gain on sales, net	(165)	(104)	(188)	(254)
Provision for unrealized losses	46	203	264	399
Operating expenses	253	(73)	460	184
Less: Lease revenue	9		31	5
Expenses related to OREO, net of lease revenue	125	26	505	324
Real Estate, Other
Activity in the other real estate owned (OREO) portfolio, net of valuation reserve
Balance at beginning of period	5,082	5,668
Property additions, net of acquisition adjustments	314	305
Less: Property disposals, net of gains/losses	2,664	1,088
Less: Period valuation adjustments	46	203
Balance at end of period	2,686	4,682	2,686	4,682
Activity in the valuation allowance
Balance at beginning of period	6,464	8,061
Provision for unrealized losses	46	203
Reductions taken on sales	(4,897)	(798)
Balance at end of period	1,613	7,466	$ 1,613	$ 7,466
Expenses related to foreclosed assets, net of lease revenue
Provision for unrealized losses	$ 46	$ 203

Deposits - Classifications of D

Deposits - Classifications of Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Deposits
Noninterest bearing demand	$ 889,085	$ 669,795
Savings	382,711	307,015
NOW accounts	492,407	425,792
Money market accounts	310,613	282,478
Certificates of deposit of less than $100,000	208,570	227,578
Certificates of deposit of $100,000 up to $250,000	129,522	151,279
Certificates of deposit of $250,000 or more	66,335	62,812
Total deposits	$ 2,479,243	$ 2,126,749

Borrowings - Summary (Details)

Borrowings - Summary (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Borrowings
Senior Notes	$ 44,349	$ 44,270
Total borrowings	159,984	205,870
Securities Sold under Agreements to Repurchase [Member]
Borrowings
Total borrowings	59,268	48,693
Federal Home Loan Bank Advances [Member]
Borrowings
Total borrowings	6,125	48,500
Junior Subordinated Debt
Borrowings
Total borrowings	25,773	57,734
Senior Notes.
Borrowings
Senior Notes	44,349	44,270
Notes Payable to Banks [Member]
Borrowings
Total borrowings	$ 24,469	$ 6,673

Borrowings - Additional informa

Borrowings - Additional information (Details)	Mar. 02, 2020USD ($)	Feb. 24, 2020USD ($)	Dec. 31, 2016	Sep. 30, 2020USD ($)item	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)	Apr. 20, 2018USD ($)
Borrowings
Interest rate (as a percent)			5.75%
Bank owned FHLBC stock				$ 3,700,000	$ 3,700,000	$ 3,700,000
Senior notes				44,349,000		44,270,000
Debt Instrument, Term			10 years
Interest rate term			5 years
Total borrowings				$ 159,984,000		205,870,000
GCFC/ABC Bank
Borrowings
Interest rate (as a percent)				2.83%
FHLBC advance amount				$ 6,500,000
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				59,300,000		48,700,000
Fair value of the pledged collateral				$ 79,300,000	$ 79,300,000	70,700,000
Number of customers having secured balances exceeding specified percentage of stockholders equity \| item				0
Total borrowings				$ 59,268,000		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				$ 6,100,000		48,500,000
Bank owned FHLBC stock				3,700,000
Fair value of securities collateralized				53,100,000
Principal balance of loans collateralized				569,700,000
Combined collateral value				428,400,000
Amount available for additional borrowings				289,600,000
Total borrowings				6,125,000		48,500,000
FHLB advances at 1.76% to 2.23%
Borrowings
FHLBC advance amount				$ 6,100,000
FHLB advances at 1.76% to 2.23% \| Minimum [Member]
Borrowings
Interest rate (as a percent)				2.19%
Notes Payable to Banks [Member]
Borrowings
Total borrowings				$ 24,469,000		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				44,349,000		44,270,000
Debt issuance costs				$ 651,000		$ 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
Total borrowings				$ 18,000,000
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 ($)	Sep. 30, 2020	Mar. 02, 2020	Feb. 24, 2020	Apr. 30, 2007	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 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						$ 643,000	$ 36,000
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%				4.40%
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	6 Months Ended	9 Months Ended
Equity Compensation Plans - Options (Details)	Sep. 30, 2020USD ($)	Jun. 30, 2020USD ($)	Sep. 30, 2020USD ($)shares	Sep. 30, 2019USD ($)shares	Mar. 31, 2019shares
Equity Compensation Plans
Total compensation cost \| $	$ 1,600,000	$ 1,600,000		$ 1,900,000
Granted (in shares) \| shares			0	166,106
2019 Plan
Equity Compensation Plans
Number of stock option grant awards outstanding \| $			0
2014 Plan
Equity Compensation Plans
Number of shares authorized \| shares					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	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Mar. 31, 2019
Summary Of Stock Option Activity [Abstract]
Cash received from options exercised		$ 32
Stock based compensation	$ 1,623	$ 1,905
2014 Plan
Summary Of Stock Option Activity [Abstract]
Number of shares authorized			600,000
Number of shares issuable	343,602

Equity Compensation Plans - Res

Equity Compensation Plans - Restricted Stock and RSUs (Details) - Restricted Stock and Restricted Stock Units [Member] $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares
Changes in unvested awards
Nonvested at the beginning of the period (in shares) \| shares	555,283
Granted (in shares) \| shares	137,944
Vested (in shares) \| shares	(149,952)
Nonvested at the end of the period (in shares) \| shares	543,275
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	11.16
Nonvested at the end of the period (in dollars per share) \| $ / shares	$ 13.17
Additional information
Total unrecognized compensation cost of restricted awards \| $	$ 2.8
Expected weighted-average period for recognition of unrecognized compensation	1 year 9 months

Earnings Per Share - Reconcilia

Earnings Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2016	Sep. 30, 2020	Sep. 30, 2019
Basic earnings per share:
Weighted-average common shares outstanding	29,559,026	29,899,063		29,708,239	29,880,511
Net income	$ 10,265	$ 12,173		$ 19,778	$ 29,919
Basic earnings per share (in dollars per share)	$ 0.35	$ 0.41		$ 0.67	$ 1
Diluted earnings per share:
Weighted-average common shares outstanding	29,559,026	29,899,063		29,708,239	29,880,511
Diluted average common shares outstanding	30,102,301	30,438,333		30,261,721	30,390,965
Net earnings available to common stockholders	$ 10,265	$ 12,173		$ 19,778	$ 29,919
Diluted earnings per share (in dollars per share)	$ 0.34	$ 0.40		$ 0.65	$ 0.98
Warrant term			10 years
Restricted Stock and Restricted Stock Units [Member]
Diluted earnings per share:
Dilutive effect of share-based payment awards (in shares)	543,275	539,270		553,482	510,454

Regulatory & Capital Matters (D

Regulatory & Capital Matters (Details)	3 Months Ended	9 Months Ended
Regulatory & Capital Matters (Details)	Mar. 31, 2020USD ($)	Sep. 30, 2020USD ($)	Jan. 01, 2020USD ($)	Dec. 31, 2019
Regulatory & Capital Matters
Tier 1 capital leverage ratio (as a percent)		10.07		11.93
Risk-based capital ratio (as a percent)		14.33		14.53
Payments of Dividends	$ 30,000,000
Phase out of impact of allowance for credit loss			$ 3,800,000
Deferment of impact on rretained earnings		$ 5,700,000
Percentage of allowance for credit loss		25.00%
Change in allowance for credit loss		$ 10,400,000
Subsidiaries [Member]
Regulatory & Capital Matters
Tier 1 capital leverage ratio (as a percent)		10.90		12.50
Risk-based capital ratio (as a percent)		15.49		15.23
Tier One leverage ratio, basis point decrease (as a percent)		1.60%
Risk-based capital ratio, basis point decrease (as a percent)		$ 0.26
Minimum [Member] \| Subsidiaries [Member]
Regulatory & Capital Matters
Tier 1 capital leverage ratio (as a percent)		8
Risk-based capital ratio (as a percent)		12
Tier 1 capital leverage ratio, board-designated threshold		8.00%
Total Capital Ratio, board-designated threshold (as a percent)		12.00%

Regulatory & Capital Matters -

Regulatory & Capital Matters - Capital Levels and Industry Defined Regulatory Minimums (Details) $ in Thousands	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Common equity tier 1 capital to risk weighted assets
Actual	$ 269,874	$ 251,477
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 157,821	$ 158,020
Common equity tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	11.97%	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	$ 323,041	$ 327,886
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 236,701	$ 236,944
Total capital to risk weighted assets, Ratio
Risk-based capital ratio (as a percent)	14.33	14.53
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	10.500	10.500
Tier 1 capital to risk weighted assets, Amount
Actual	$ 294,874	$ 308,102
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 191,623	$ 191,858
Tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	13.08	13.65
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	8.500	8.500
Tier 1 capital to average assets, Amount
Actual	$ 294,874	$ 308,102
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 117,130	$ 103,303
Tier 1 capital to average assets, Ratio
Tier 1 capital leverage ratio (as a percent)	10.07	11.93
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	4	4
Subsidiaries [Member]
Common equity tier 1 capital to risk weighted assets
Actual	$ 319,662	$ 322,496
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	157,137	157,315
Minimum Required to Be Well Capitalized	$ 145,913	$ 146,078
Common equity tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	14.24%	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	$ 347,723	$ 342,280
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	235,706	235,978
Minimum Required to Be Well Capitalized	$ 224,482	$ 224,741
Total capital to risk weighted assets, Ratio
Risk-based capital ratio (as a percent)	15.49	15.23
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	10.500	10.500
Minimum Required to Be Well Capitalized (as a percent)	10	10
Tier 1 capital to risk weighted assets, Amount
Actual	$ 319,662	$ 322,496
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	190,809	191,026
Minimum Required to Be Well Capitalized	$ 179,585	$ 179,789
Tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	14.24	14.35
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	8.500	8.500
Minimum Required to Be Well Capitalized (as a percent)	8	8
Tier 1 capital to average assets, Amount
Actual	$ 319,662	$ 322,496
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	117,307	103,199
Minimum Required to Be Well Capitalized	$ 146,634	$ 128,998
Tier 1 capital to average assets, Ratio
Tier 1 capital leverage ratio (as a percent)	10.90	12.50
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	4	4
Minimum Required to Be Well Capitalized (as a percent)	5	5

Regulatory & Capital Matters _2

Regulatory & Capital Matters - Dividend Restrictions and Deferrals (Details) - shares	3 Months Ended			9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 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	137,756	145,932	312,723

Fair Value Measurements - Recur

Fair Value Measurements - Recurring (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Assets:
Securities available-for-sale	$ 448,421		$ 484,648
Mortgage servicing rights	5,010		5,935
US Treasury Securities [Member]
Assets:
Securities available-for-sale	4,134		4,036
US Government Corporations and Agencies Securities [Member]
Assets:
Securities available-for-sale	7,005		8,337
Mortgage Backed Securities, Issued by US Government Agencies [Member]
Assets:
Securities available-for-sale	18,219
US States and Political Subdivisions Debt Securities [Member]
Assets and liabilities measured at fair value on a recurring basis
Purchases	12,900	$ 17,643
Assets:
Securities available-for-sale	249,777		249,175
Collateralized Mortgage Obligations [Member]
Assets:
Securities available-for-sale	57,013		57,984
Asset-backed Securities [Member]
Assets:
Securities available-for-sale	81,585		81,844
Collateralized loan obligations
Assets:
Securities available-for-sale	30,688		66,684
Fair Value, Inputs, Level 1 [Member]
Assets:
Securities available-for-sale	4,134		4,036
Fair Value, Inputs, Level 2 [Member]
Assets:
Securities available-for-sale	439,497		475,193
Loans held-for-sale	10,229		3,061
Other assets	10,506		2,771
Liabilities:
Other liabilities	15,128		5,921
Level 3
Assets:
Securities available-for-sale	4,790		5,419
Mortgage servicing rights	5,010		5,935
Level 3 \| US States and Political Subdivisions Debt Securities [Member]
Assets:
Securities available-for-sale	4,800		5,900
Recurring
Assets:
Securities available-for-sale			8,337
Total financial assets	475,600		496,665
Liabilities:
Total	15,231		5,974
Recurring \| Finite-Lived Intangible Assets [Member]
Assets:
Loans held-for-sale	10,229		3,061
Mortgage servicing rights	5,010		5,935
Recurring \| Interest Rate Swap [Member]
Liabilities:
Other liabilities	15,231		5,974
Recurring \| Interest Rate Swap [Member] \| Finite-Lived Intangible Assets [Member]
Assets:
Other assets	10,506		2,771
Recurring \| Forward Contracts [Member] \| Finite-Lived Intangible Assets [Member]
Assets:
Other assets	1,434		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	4,134
Recurring \| US Government Corporations and Agencies Securities [Member] \| Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	7,005
Recurring \| Mortgage Backed Securities, Issued by US Government Agencies [Member] \| Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	18,219		16,588
Recurring \| US States and Political Subdivisions Debt Securities [Member] \| Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	249,777		249,175
Recurring \| Collateralized Mortgage Obligations [Member] \| Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	57,013		57,984
Recurring \| Asset-backed Securities [Member] \| Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	81,585		81,844
Recurring \| Collateralized loan obligations \| Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	30,688		66,684
Recurring \| Fair Value, Inputs, Level 1 [Member]
Assets:
Total financial assets	4,134		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	4,134
Recurring \| Fair Value, Inputs, Level 2 [Member]
Assets:
Securities available-for-sale			8,337
Total financial assets	461,666		481,275
Liabilities:
Total	15,231		5,974
Recurring \| Fair Value, Inputs, Level 2 [Member] \| Finite-Lived Intangible Assets [Member]
Assets:
Loans held-for-sale	10,229		3,061
Recurring \| Fair Value, Inputs, Level 2 [Member] \| Interest Rate Swap [Member]
Liabilities:
Other liabilities	15,231		5,974
Recurring \| Fair Value, Inputs, Level 2 [Member] \| Interest Rate Swap [Member] \| Finite-Lived Intangible Assets [Member]
Assets:
Other assets	10,506		2,771
Recurring \| Fair Value, Inputs, Level 2 [Member] \| Forward Contracts [Member] \| Finite-Lived Intangible Assets [Member]
Assets:
Other assets	1,434		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	7,005
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	18,219		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	244,987		243,756
Recurring \| Fair Value, Inputs, Level 2 [Member] \| Collateralized Mortgage Obligations [Member] \| Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	57,013		57,984
Recurring \| Fair Value, Inputs, Level 2 [Member] \| Asset-backed Securities [Member] \| Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	81,585		81,844
Recurring \| Fair Value, Inputs, Level 2 [Member] \| Collateralized loan obligations \| Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	30,688		66,684
Recurring \| Level 3
Assets:
Total financial assets	9,800		11,354
Recurring \| Level 3 \| Finite-Lived Intangible Assets [Member]
Assets:
Mortgage servicing rights	5,010		5,935
Recurring \| Level 3 \| US States and Political Subdivisions Debt Securities [Member] \| Finite-Lived Intangible Assets [Member]
Assets:
Securities available-for-sale	$ 4,790		$ 5,419

Fair Value Measurements - Chang

Fair Value Measurements - Changes in Level 3 (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 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)		(25)
Included in other comprehensive income	(216)	898
Purchases, issuances, sales, and settlements
Purchases	12,900	17,643
Settlements	(13,297)	(20,808)
Ending balance	4,790	5,873
Changes in Level 3 (liabilities)
Included in earnings (or changes in net assets)	(16)
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)		(2,384)
Purchases, issuances, sales, and settlements
Issuances	1,813	906
Settlements	(275)	(518)
Ending balance	5,010	$ 5,361
Changes in Level 3 (liabilities)
Included in earnings (or changes in net assets)	$ (2,463)

Fair Value Measurements - Quant

Fair Value Measurements - Quantitative and Qualitative Information (Details) $ in Thousands	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	$ 5,010	$ 5,935
Securities available-for-sale, at fair value	448,421	484,648
Level 3
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	5,010	5,935
Securities available-for-sale, at fair value	4,790	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	249,777	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	4,800	5,900
Collateralized Mortgage Obligations [Member]
Quantitative information about Level 3 fair value measurements
Securities available-for-sale, at fair value	$ 57,013	$ 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	11	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	15	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	11	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	0	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	42.8	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	15.4	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 ($)	9 Months Ended	12 Months Ended
Fair Value Measurements - Nonrecurring (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Assets and liabilities measured at fair value
Carrying value of other real estate owned	$ 2,686,000	$ 5,004,000	$ 4,682,000	$ 7,175,000
Outstanding balance		12,700,000
OREO Valuation allowance	1,613,000	6,712,000	$ 7,466,000	$ 8,027,000
Impaired Loans [Member]
Assets and liabilities measured at fair value
Valuation allowance		8,600,000
Other Real Estate Owned [Member]
Assets and liabilities measured at fair value
Outstanding balance		12,700,000
Fair Value, Measurements, Nonrecurring [Member]
Assets and liabilities measured at fair value
Total	14,886,000	12,439,000
Fair Value, Measurements, Nonrecurring [Member] \| Impaired Loans [Member]
Assets and liabilities measured at fair value
Total	12,200,000	7,435,000
Valuation allowance	2,700,000	1,200,000
Increase (decrease) of specific allocations within the provision for loan losses	1,600,000	783,000
Fair Value, Measurements, Nonrecurring [Member] \| Impaired Loans [Member] \| Reported Value Measurement [Member]
Assets and liabilities measured at fair value
Total	14,900,000
Fair Value, Measurements, Nonrecurring [Member] \| Other Real Estate Owned [Member]
Assets and liabilities measured at fair value
Total	2,686,000	5,004,000
Carrying value of other real estate owned	2,700,000	5,000,000
Outstanding balance	4,300,000
OREO Valuation allowance	1,600,000	6,700,000
OREO participations		937,000
Fair Value, Measurements, Nonrecurring [Member] \| Level 3
Assets and liabilities measured at fair value
Total	14,886,000	12,439,000
Fair Value, Measurements, Nonrecurring [Member] \| Level 3 \| Impaired Loans [Member]
Assets and liabilities measured at fair value
Total	12,200,000	7,435,000
Fair Value, Measurements, Nonrecurring [Member] \| Level 3 \| Other Real Estate Owned [Member]
Assets and liabilities measured at fair value
Total	$ 2,686,000	$ 5,004,000

Fair Values of Financial Inst_3

Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financial assets:
Cash and due from banks	$ 29,489	$ 34,096
Interest bearing deposits with financial institutions	283,651	16,536
Securities available-for-sale	448,421	484,648
FHLBC and FRBC Stock	9,917	9,917
Bank-owned life insurance	62,222	61,763
Financial liabilities:
Noninterest bearing deposits	889,085	669,795
Other short-term borrowings	6,125	48,500
Junior subordinated debentures	25,773	57,734
Reported Value Measurement [Member]
Financial assets:
Cash and due from banks	29,489	34,096
Interest bearing deposits with financial institutions	283,651	16,536
Securities available-for-sale	448,421	484,648
FHLBC and FRBC Stock	9,917	9,917
Loans held for sale	10,229	3,061
Net loans	1,997,409	1,911,023
Interest rate swap agreements	10,506	2,771
Accrued interest receivable	9,706	9,697
Financial liabilities:
Noninterest bearing deposits	889,085	669,795
Interest bearing deposits	1,590,158	1,456,954
Securities sold under repurchase agreements	59,268	48,693
Other short-term borrowings	6,125	48,500
Junior subordinated debentures	25,773	57,734
Senior notes	44,349	44,270
Note payable and other borrowings	24,469	6,673
Interest rate swap	15,128	5,921
Borrowing interest payable	1,257	1,079
Estimate of Fair Value Measurement [Member]
Financial assets:
Cash and due from banks	29,489	34,096
Interest bearing deposits with financial institutions	283,651	16,536
Securities available-for-sale	448,421	484,648
FHLBC and FRBC Stock	9,917	9,917
Loans held for sale	10,229	3,061
Net loans	2,013,415	1,915,531
Interest rate swap agreements	10,506	2,771
Accrued interest receivable	9,706	9,697
Financial liabilities:
Noninterest bearing deposits	889,085	669,795
Interest bearing deposits	1,593,058	1,457,832
Securities sold under repurchase agreements	59,268	48,693
Other short-term borrowings	6,125	48,500
Junior subordinated debentures	14,167	51,188
Senior notes	44,799	46,269
Note payable and other borrowings	25,160	7,003
Interest rate swap	15,128	5,921
Borrowing interest payable	1,257	1,079
Fair Value, Inputs, Level 1 [Member]
Financial assets:
Cash and due from banks	29,489	34,096
Interest bearing deposits with financial institutions	283,651	16,536
Securities available-for-sale	4,134	4,036
Financial liabilities:
Noninterest bearing deposits	889,085	669,795
Junior subordinated debentures		33,614
Senior notes	44,799	46,269
Fair Value, Inputs, Level 2 [Member]
Financial assets:
Securities available-for-sale	439,497	475,193
FHLBC and FRBC Stock	9,917	9,917
Loans held for sale	10,229	3,061
Interest rate swap agreements	10,506	2,771
Accrued interest receivable	9,706	9,697
Financial liabilities:
Interest bearing deposits	1,593,058	1,457,832
Securities sold under repurchase agreements	59,268	48,693
Other short-term borrowings	6,125	48,500
Junior subordinated debentures	14,167	17,574
Note payable and other borrowings	25,160	7,003
Interest rate swap	15,128	5,921
Borrowing interest payable	1,257	1,079
Level 3
Financial assets:
Securities available-for-sale	4,790	5,419
Net loans	$ 2,013,415	$ 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	9 Months Ended	12 Months Ended
	Dec. 31, 2019USD ($)item	Sep. 30, 2020USD ($)item	Dec. 31, 2019USD ($)item	Dec. 31, 2018USD ($)
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		$ 2,988,000
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		$ 7,610,000
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		2,988,000
Derivated liabilities designated as hedging instruments, classified in other liabilities	3,150,000	7,610,000	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
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		8,952,000
Total Derivative liabilities not designated as hedging instruments, fair value		$ 7,621,000
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	28	25
Notional Amount	$ 177,872,000	$ 191,341,000	$ 177,872,000
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets	2,771,000	7,518,000	2,771,000
Interest rate derivatives, derivative not designated as hedging instruments, classified in other liabilities	2,771,000	$ 7,518,000	$ 2,771,000
Weighted average maturity		5 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		$ 114,000
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			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	250	4
Notional Amount	$ 28,176,000	$ 92,154,000	$ 28,176,000
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets		$ 1,434,000
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		$ 26,683,000
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		103,000
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		180,000
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		$ 163,000

Derivatives, Hedging Activiti_4

Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Effect of Fair Value (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Amount of Gain or (Loss) Recognized in OCI on Derivative	$ 3,300,000	$ 3,400,000
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	$ (72,000)	$ (27,000)

Derivatives, Hedging Activiti_5

Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Commitments (Details) - USD ($)	3 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Company's contractual commitments due to letters of credit
Total letters of credit	$ 15,458,000			$ 16,801,000
Provision for Unfunded Commitments	980,000	$ 734,000	$ 2,500,000
Fixed [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	685,000			910,000
Variable [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	14,773,000			15,891,000
Commitments to Extend Credit to Borrowers [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	15,391,000			16,734,000
Commitments to Extend Credit to Borrowers [Member] \| Fixed [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	685,000			910,000
Commitments to Extend Credit to Borrowers [Member] \| Variable [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	14,706,000			15,824,000
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	9,210,000			9,951,000
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	329,000			339,000
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	8,881,000			9,612,000
Commitments to Extend Credit to Borrowers [Member] \| Performance Guarantee [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	6,181,000			6,783,000
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	356,000			571,000
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	5,825,000			6,212,000
Commitments to Extend Credit Nonborrowers [Member] \| Performance Guarantee [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	67,000			67,000
Commitments to Extend Credit Nonborrowers [Member] \| Performance Guarantee [Member] \| Variable [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	67,000			67,000
Letter of Credit [Member] \| Unused lines of Credit [Member]
Company's contractual commitments due to letters of credit
Loan commitments	419,037,000			431,468,000
Letter of Credit [Member] \| Unused lines of Credit [Member] \| Fixed [Member]
Company's contractual commitments due to letters of credit
Loan commitments	93,875,000			111,348,000
Letter of Credit [Member] \| Unused lines of Credit [Member] \| Variable [Member]
Company's contractual commitments due to letters of credit
Loan commitments	$ 325,162,000			$ 320,120,000
Revision of Prior Period, Adjustment [Member] \| Accounting Standards Update 2016-13
Company's contractual commitments due to letters of credit
Provision for Unfunded Commitments			$ 1,700,000