Old Second Bancorp (OSBC) 10-Q5 Nov 212021 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2021	Nov. 02, 2021
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Entity File Number	000-10537
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		28,707,737
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000357173
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Assets
Cash and due from banks	$ 26,705	$ 24,306
Interest earning deposits with financial institutions	492,548	305,597
Cash and cash equivalents	519,253	329,903
Securities available-for-sale, at fair value	715,188	496,178
Federal Home Loan Bank Chicago ("FHLBC") and Federal Reserve Bank Chicago ("FRBC") stock	9,917	9,917
Loans held-for-sale	3,009	12,611
Loans	1,867,942	2,034,851
Less: allowance for credit losses on loans	26,949	33,855
Net loans	1,840,993	2,000,996
Premises and equipment, net	44,120	45,477
Other real estate owned	1,912	2,474
Mortgage servicing rights, at fair value	5,320	4,224
Goodwill and core deposit intangible	20,433	20,781
Bank-owned life insurance ("BOLI")	64,265	63,102
Deferred tax assets, net	7,335	8,121
Other assets	43,387	47,053
Total assets	3,275,132	3,040,837
Deposits:
Noninterest bearing demand	1,037,638	909,505
Interest bearing:
Savings, NOW, and money market	1,366,138	1,202,134
Time	310,553	425,434
Total deposits	2,714,329	2,537,073
Securities sold under repurchase agreements	42,962	66,980
Junior subordinated debentures	25,773	25,773
Subordinated debentures	59,190
Senior notes	44,454	44,375
Notes payable and other borrowings	20,155	23,393
Other liabilities	47,037	36,156
Total liabilities	2,953,900	2,733,750
Stockholders' Equity
Common stock	34,957	34,957
Additional paid-in capital	121,074	122,212
Retained earnings	262,513	236,579
Accumulated other comprehensive income	12,249	14,762
Treasury stock	(109,561)	(101,423)
Total stockholders' equity	321,232	307,087
Total liabilities and stockholders' equity	$ 3,275,132	$ 3,040,837

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
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	34,957,384
Common stock, Shares outstanding	28,707,737	29,328,723
Treasury stock, Shares	6,249,647	5,628,661

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, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Interest and dividend income
Loans, including fees	$ 21,315	$ 21,980	$ 64,337	$ 67,924
Loans held-for-sale	39	95	132	241
Securities:
Taxable	1,835	1,458	5,282	5,315
Tax exempt	1,285	1,327	3,851	4,178
Dividends from FHLBC and FRBC stock	114	118	342	366
Interest bearing deposits with financial institutions	203	68	432	185
Total interest and dividend income	24,791	25,046	74,376	78,209
Interest expense
Savings, NOW, and money market deposits	209	299	667	1,319
Time deposits	330	1,084	1,239	4,292
Securities sold under repurchase agreements	15	28	67	167
Other short-term borrowings		24		167
Junior subordinated debentures	286	285	850	1,932
Subordinated debentures	547		1,064
Senior notes	673	673	2,019	2,019
Notes payable and other borrowings	113	144	355	439
Total interest expense	2,173	2,537	6,261	10,335
Net interest and dividend income	22,618	22,509	68,115	67,874
(Release of) provision for credit losses	(1,500)	300	(8,000)	10,413
Net interest and dividend income after (release of) provision for credit losses	24,118	22,209	76,115	57,461
Noninterest income
Mortgage servicing rights mark to market loss	(282)	(160)	(202)	(2,739)
Net gain on sales of mortgage loans	2,186	5,246	7,802	12,123
Securities gains (losses), net	244	(1)	246	(25)
Change in cash surrender value of BOLI	406	459	1,163	942
Death benefit realized on BOLI		(2)		57
Card related income	1,624	1,499	4,737	4,097
Other income	610	420	1,637	1,572
Total noninterest income	9,340	11,685	28,559	28,702
Noninterest expense
Salaries and employee benefits	12,964	12,586	39,366	36,846
Occupancy, furniture and equipment	2,418	2,003	7,188	6,239
Computer and data processing	1,477	1,226	4,079	3,808
FDIC insurance	211	191	604	403
General bank insurance	301	281	854	764
Amortization of core deposit intangible	113	122	348	374
Advertising expense	107	62	262	228
Card related expense	662	566	1,881	1,612
Legal fees	455	169	645	476
Other real estate expense, net	25	125	138	505
Other expense	3,396	2,935	9,903	8,909
Total noninterest expense	22,129	20,266	65,268	60,164
Income before income taxes	11,329	13,628	39,406	25,999
Provision for income taxes	2,917	3,363	10,295	6,221
Net income	$ 8,412	$ 10,265	$ 29,111	$ 19,778
Basic earnings per share	$ 0.30	$ 0.35	$ 1.01	$ 0.67
Diluted earnings per share	0.29	0.34	0.99	0.65
Dividends declared per share	$ 0.05	$ 0.01	$ 0.11	$ 0.03
Deposit Account
Noninterest income
Service charges on deposits	$ 1,368	$ 1,322	$ 3,784	$ 4,168
Trust Income
Noninterest income
Service charges on deposits	2,372	1,889	6,912	5,793
Bank Servicing
Noninterest income
Service charges on deposits	572	521	1,646	1,447
Secondary mortgage fees
Noninterest income
Service charges on deposits	$ 240	$ 492	$ 834	$ 1,267

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Consolidated Statements of Comprehensive Income
Net Income	$ 8,412	$ 10,265	$ 29,111	$ 19,778
Unrealized holding (losses) gains on available-for-sale securities arising during the period	(3,007)	5,812	(4,483)	10,455
Related tax benefit (expense)	841	(1,633)	1,277	(2,932)
Holding (losses) gains, after tax, on available-for-sale securities	(2,166)	4,179	(3,206)	7,523
Less: Reclassification adjustment for the net gains (losses) realized during the period
Net realized gains (losses)	244	(1)	246	(25)
Related tax (expense) benefit	(69)		(70)	7
Net realized gains (losses) after tax	175	(1)	176	(18)
Other comprehensive (loss) income on available-for-sale securities	(2,341)	4,180	(3,382)	7,541
Changes in fair value of derivatives used for cash flow hedges	218	615	1,207	(1,472)
Related tax (expense) benefit	(62)	(173)	(338)	413
Other comprehensive income (loss) on cash flow hedges	156	442	869	(1,059)
Total other comprehensive (loss) income	(2,185)	4,622	(2,513)	6,482
Total comprehensive income	$ 6,227	$ 14,887	$ 26,598	$ 26,260

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended	9 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Sep. 30, 2021	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities
Net Income	$ 8,412,000	$ 29,111,000	$ 19,778,000
Adjustments to reconcile net income to net cash provided by operating activities:
Net premium / discount from amortization on securities		1,736,000	1,712,000
Securities (gains) losses, net	(244,000)	(246,000)	25,000
(Release of) provision for credit losses	(1,500,000)	(8,000,000)	10,413,000
Originations of loans held-for-sale		(191,679,000)	(296,388,000)
Proceeds from sales of loans held-for-sale		207,339,000	300,045,000
Net gains on sales of mortgage loans	(2,186,000)	(7,802,000)	(12,123,000)
Mortgage servicing rights mark to market loss	282,000	202,000	2,739,000
Net discount from accretion on loans		(618,000)	(841,000)
Net change in cash surrender value of BOLI	(406,000)	(1,163,000)	(942,000)
Net gains on sale of other real estate owned	(5,000)	(40,000)	(188,000)
Provision for other real estate owned valuation losses		65,000	264,000
Depreciation of fixed assets and amortization of leasehold improvements		2,286,000	2,075,000
Amortization of core deposit intangibles	113,000	348,000	374,000
Change in current income taxes receivable		329,000	(781,000)
Deferred tax expense (benefit)		1,796,000	(693,000)
Change in accrued interest receivable and other assets		2,973,000	(19,144,000)
Amortization of purchase accounting adjustment on notes payable and other borrowings		(3,000)	25,000
Amortization of subordinated debentures issuance costs		42,000
Amortization of junior subordinated debentures issuance costs			643,000
Amortization of senior notes issuance costs		79,000	79,000
Change in accrued interest payable and other liabilities		12,898,000	8,060,000
Stock based compensation		1,113,000	1,623,000
Net cash provided by operating activities		50,766,000	16,755,000
Cash flows from investing activities
Proceeds from maturities and calls, including pay down of securities available-for-sale		91,931,000	41,645,000
Proceeds from sales of securities available-for-sale	26,873,000	35,075,000	18,006,000
Purchases of securities available-for-sale		(352,236,000)	(14,681,000)
Net change in loans		168,551,000	(100,370,000)
Proceeds from claims on BOLI, net of claims receivable			483,000
Proceeds from sales of other real estate owned, net of participations and improvements		607,000	3,140,000
Net purchases of premises and equipment		(929,000)	(2,635,000)
Net cash used in investing activities		(57,001,000)	(54,412,000)
Cash flows from financing activities
Net change in deposits		177,256,000	352,494,000
Net change in securities sold under repurchase agreements		(24,018,000)	10,575,000
Net change in other short-term borrowings			(42,375,000)
Redemption of junior subordinated debentures			(32,604,000)
Issuance of subordinated debentures, net of issuance costs		59,148,000
Issuance of term note			20,000,000
Repayment of term note		(3,000,000)	(2,000,000)
Net change in notes payable and other borrowings, excluding term note		(235,000)	(229,000)
Dividends paid on common stock		(3,177,000)	(893,000)
Purchase of treasury stock		(10,389,000)	(4,803,000)
Net cash provided by financing activities		195,585,000	300,165,000
Net change in cash and cash equivalents		189,350,000	262,508,000
Cash and cash equivalents at beginning of period		329,903,000	50,632,000
Cash and cash equivalents at end of period	$ 519,253,000	$ 519,253,000	$ 313,140,000

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)	Treasury Stock	Cumulative Effect, Period of Adoption, Adjustment [Member]	Total
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 (loss), 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 from stock repurchase program						(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 (loss), net of tax					4,622			4,622
Dividends declared and paid				(296)				(296)
Stock based compensation		309						309
Purchase of treasury stock from stock repurchase program						(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
Balance at Dec. 31, 2020	34,957	122,212		236,579	14,762	(101,423)		307,087
Increase (Decrease) in Stockholders' Equity
Net Income				29,111				29,111
Other comprehensive income (loss), net of tax					(2,513)			(2,513)
Dividends declared and paid				(3,177)				(3,177)
Vesting of restricted stock		(2,251)				2,251
Stock based compensation		1,113						1,113
Purchase of treasury stock from taxes withheld on stock awards						(577)		(577)
Purchase of treasury stock from stock repurchase program						(9,812)		(9,812)
Balance at Sep. 30, 2021	34,957	121,074		262,513	12,249	(109,561)		321,232
Balance at Jun. 30, 2021	34,957	120,572		255,536	14,434	(109,561)		315,938
Increase (Decrease) in Stockholders' Equity
Net Income				8,412				8,412
Other comprehensive income (loss), net of tax					(2,185)			(2,185)
Dividends declared and paid				(1,435)				(1,435)
Stock based compensation		502						502
Balance at Sep. 30, 2021	$ 34,957	$ 121,074		$ 262,513	$ 12,249	$ (109,561)		$ 321,232

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	$ 315,938	$ 282,516	$ 307,087	$ 277,864
Other comprehensive (loss) income, net of tax	(2,185)	4,622	(2,513)	6,482
Balance	$ 321,232	$ 296,268	$ 321,232	$ 296,268
Dividend declared and paid (per share)	$ 0.05	$ 0.01	$ 0.11	$ 0.03
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	$ 14,434	$ 6,422	$ 14,762	$ 4,562
Other comprehensive (loss) income, net of tax	(2,185)	4,622	(2,513)	6,482
Balance	12,249	11,044	12,249	11,044
Accumulated Unrealized Gain (Loss) on Securities Available-for-Sale
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	16,372	10,188	17,413	6,827
Other comprehensive (loss) income, net of tax	(2,341)	4,180	(3,382)	7,541
Balance	14,031	14,368	14,031	14,368
Accumulated Unrealized Gain (Loss) on Derivative Instruments
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance	(1,938)	(3,766)	(2,651)	(2,265)
Other comprehensive (loss) income, net of tax	156	442	869	(1,059)
Balance	$ (1,782)	$ (3,324)	$ (1,782)	$ (3,324)

Basis of Presentation and Chang

Basis of Presentation and Changes in Significant Accounting Policies	9 Months Ended
	Sep. 30, 2021
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 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, 2021, are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. 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, 2020. 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 Financial Standards Board, or FASB, issued Accounting Standards Update (ASU) No. 2016-13, “ Financial Instruments – Measurement of Credit Losses on Financial Instruments (Topic 326) Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies Summary of Significant Accounting Policies 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, 2020. 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. During the third quarter of 2021, the Company had no changes to significant accounting policies. Subsequent Events On October 19, 2021, the Company’s Board of Directors declared a cash dividend of $0.05 per share payable on November 8, 2021, to stockholders of record as of October 29, 2021; dividends of $1.4 million are scheduled to be paid to stockholders on November 8, 2021.

Proposed Merger with West Subur

Proposed Merger with West Suburban Bancorp, Inc	9 Months Ended
Proposed Merger with West Suburban Bancorp, Inc	Sep. 30, 2021
Proposed Merger with West Suburban Bancorp, Inc
Proposed Merger with West Suburban Bancorp, Inc	Note 2 – Proposed Merger with West Suburban Bancorp, Inc. On July 25, 2021, the Company and West Suburban Bancorp, Inc. (“West Suburban”) entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”), under which West Suburban will merge with and into Old Second, with Old Second as the surviving corporation. The merger is expected to close in December 2021, subject to the satisfaction of customary closing conditions, including approval by the stockholders of the Company and the shareholders of West Suburban. Subject to the terms and conditions of the Merger Agreement, if the merger closes, each West Suburban shareholder will receive 42.413 shares of Company common stock and $271.15 in cash, without interest, for each share of West Suburban common stock owned by the shareholder. Based on the number of outstanding shares of Company common stock and West Suburban common stock as of September 30, 2021, and based on the exchange ratio of 42.413, it is expected that the Company’s stockholders will hold approximately 64% and West Suburban’s shareholders will hold approximately 36% of the issued and outstanding shares of Company common stock immediately following the closing of the merger.

Securities

Securities	9 Months Ended
Securities	Sep. 30, 2021
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, 2021, and December 31, 2020. FRBC stock was recorded at $6.2 million at September 30, 2021, and December 31, 2020. The following tables summarize the amortized cost and fair value of the securities portfolio at September 30, 2021, and December 31, 2020, and the corresponding amounts of gross unrealized gains and losses: Gross Gross Amortized Unrealized Unrealized Fair September 30, 2021 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 4,017 $ 53 $ - $ 4,070 U.S. government agencies 33,915 - (340) 33,575 U.S. government agencies mortgage-backed 17,269 764 (215) 17,818 States and political subdivisions 222,833 16,758 (639) 238,952 Corporate bonds 5,000 - (8) 4,992 Collateralized mortgage obligations 163,756 1,966 (308) 165,414 Asset-backed securities 187,825 1,646 (133) 189,338 Collateralized loan obligations 61,085 18 (74) 61,029 Total securities available-for-sale $ 695,700 $ 21,205 $ (1,717) $ 715,188 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2020 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 4,014 $ 103 $ - $ 4,117 U.S. government agencies 6,811 - (154) 6,657 U.S. government agencies mortgage-backed 16,098 1,112 (1) 17,209 States and political subdivisions 229,352 21,269 (1,362) 249,259 Collateralized mortgage obligations 53,999 2,866 (280) 56,585 Asset-backed securities 130,959 1,370 (511) 131,818 Collateralized loan obligations 30,728 15 (210) 30,533 Total securities available-for-sale $ 471,961 $ 26,735 $ (2,518) $ 496,178 1 Excludes accrued interest receivable of $2.8 million and $2.7 million at September 30, 2021 and December 31, 2020, 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, 2021, by contractual maturity, are listed 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 $ 4,227 1.87 % $ 4,281 Due after one year through five years 36,288 0.79 36,240 Due after five years through ten years 28,159 2.35 29,387 Due after ten years 197,091 3.01 211,681 265,765 2.62 281,589 Mortgage-backed and collateralized mortgage obligations 181,025 1.73 183,232 Asset-backed securities 187,825 1.14 189,338 Collateralized loan obligations 61,085 1.40 61,029 Total securities available-for-sale $ 695,700 1.88 % $ 715,188 At September 30, 2021, the Company’s investments included $154.5 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 $15.6 million, or 10.03% of outstanding principal. At September 30, 2021, 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, 2021 Amortized Fair Issuer Cost Value Towd Point Mortgage Trust $ 32,836 $ 34,339 Securities with unrealized losses with no corresponding allowance for credit losses at September 30, 2021 and December 31, 2020, 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, 2021 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 2 $ 229 $ 28,066 4 $ 111 $ 5,509 6 $ 340 $ 33,575 U.S. government agencies mortgage-backed 6 215 6,084 - - - 6 215 6,084 States and political subdivisions 2 23 1,490 1 616 4,085 3 639 5,575 Corporate bonds 1 8 4,992 - - - 1 8 4,992 Collateralized mortgage obligations 7 244 63,495 1 64 7,531 8 308 71,026 Asset-backed securities 5 79 35,048 1 54 3,270 6 133 38,318 Collateralized loan obligations 6 27 20,386 2 47 10,625 8 74 31,011 Total securities available-for-sale 29 $ 825 $ 159,561 9 $ 892 $ 31,020 38 $ 1,717 $ 190,581 Less than 12 months 12 months or more December 31, 2020 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. government agencies - $ - $ - 4 $ 154 $ 6,657 4 $ 154 $ 6,657 U.S. government agencies mortgage-backed 1 1 141 - - - 1 1 141 States and political subdivisions - - - 1 1,362 3,433 1 1,362 3,433 Collateralized mortgage obligations 4 279 8,142 1 1 146 5 280 8,288 Asset-backed securities 1 2 251 3 509 49,572 4 511 49,823 Collateralized loan obligations 1 31 7,468 4 179 21,477 5 210 28,945 Total securities available-for-sale 7 $ 313 $ 16,002 13 $ 2,205 $ 81,285 20 $ 2,518 $ 97,287 Each quarter we perform an analysis to determine if any of the unrealized losses on securities available-for-sale are comprised of credit losses as compared to unrealized losses due to market interest rate adjustments. Our assessment includes 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. We also consider 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 September 30, 2021, as there was no credit quality deterioration noted. Therefore, no provision for credit losses on securities was recognized for the third quarter of 2021. The following table presents proceeds from sale and net realized gains (losses) on securities available-for-sale for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended September 30, September 30, Securities available-for-sale 2021 2020 2021 2020 Proceeds from sales of securities $ 26,873 $ - $ 35,075 $ 18,006 Gross realized gains on securities $ 262 $ - $ 267 $ 17 Gross realized losses on securities (18) (1) (21) (42) Net realized gains (losses) $ 244 $ (1) $ 246 $ (25) Income tax (expense) benefit on net realized gains (losses) $ (69) $ - $ (70) $ 7 Effective tax rate applied 28.3 % 0.0 % 28.5 % 28.0 % As of September 30, 2021, securities valued at $353.2 million were pledged to secure deposits and borrowings, and for other purposes, an increase from $335.8 million of securities pledged at year-end 2020.

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, 2021
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, 2021 December 31, 2020 Commercial 1 $ 321,548 $ 407,159 Leases 162,444 141,601 Commercial real estate - Investor 535,506 582,042 Commercial real estate - Owner occupied 330,648 333,070 Construction 108,690 98,486 Residential real estate - Investor 45,497 56,137 Residential real estate - Owner occupied 108,343 116,388 Multifamily 160,798 189,040 HELOC 69,651 80,908 HELOC - Purchased 12,370 19,487 Other 2 12,447 10,533 Total loans 1,867,942 2,034,851 Allowance for credit losses on loans (26,949) (33,855) Net loans 3 $ 1,840,993 $ 2,000,996 1 Includes $34.7 million and $74.1 million of Paycheck Protection Program (“PPP”) loans at September 30, 2021 and December 31, 2020, respectively. 2 The “Other” segment includes consumer and overdrafts in this table and in subsequent tables within Note 4 - Loans and Allowance for Credit Losses on Loans. 3 Excludes accrued interest receivable of $6.1 million and $7.0 million at September 30, 2021 and December 31, 2020, respectively, that is recorded in other assets on the consolidated balance sheet. 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 seeks to assure access to collateral, in the event of borrower default, 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 73.4% and 72.5% of the portfolio at September 30, 2021, and December 31, 2020, respectively, and include a mix of owner and non-owner occupied, residential, construction and multifamily loans. The following tables represent the activity in the allowance for credit losses for loans, or the ACL, for the three and nine months ended September 30, 2021 and 2020: Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Three months ended September 30, 2021 Commercial $ 2,601 $ 82 $ 23 $ 25 $ 2,685 Leases 3,388 (41) 4 - 3,343 Commercial real estate - Investor 10,437 (890) 101 18 9,464 Commercial real estate - Owner occupied 1,086 99 5 7 1,187 Construction 3,048 (175) - - 2,873 Residential real estate - Investor 975 (287) - 7 695 Residential real estate - Owner occupied 1,866 (116) - 18 1,768 Multifamily 3,266 (121) 183 - 2,962 HELOC 1,604 13 - 28 1,645 HELOC - Purchased 229 (36) - - 193 Other 139 19 53 29 134 Ending Balance, September 30, 2021 $ 28,639 $ (1,453) $ 369 $ 132 $ 26,949 Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Nine months ended September 30, 2021 Commercial $ 2,812 $ 43 $ 232 $ 62 $ 2,685 Leases 3,888 (513) 32 - 3,343 Commercial real estate - Investor 9,205 302 101 58 9,464 Commercial real estate - Owner occupied 2,251 (1,250) 39 225 1,187 Construction 4,054 (1,181) - - 2,873 Residential real estate - Investor 1,740 (1,328) - 283 695 Residential real estate - Owner occupied 2,714 (1,074) - 128 1,768 Multifamily 3,625 (480) 183 - 2,962 HELOC 1,749 (216) 17 129 1,645 HELOC - Purchased 199 (6) - - 193 Other 1,618 (1,483) 108 107 134 Ending Balance, September 30, 2021 $ 33,855 $ (7,186) $ 712 $ 992 $ 26,949 Impact of Provision for Beginning Adopting (Release of) Ending Allowance for credit losses Balance ASC 326 Credit 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 Residential real estate - Investor 2,217 - (290) 3 18 1,942 Residential 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 700 - 64 53 41 752 Ending Balance, September 30, 2020 $ 31,273 $ - $ 1,280 $ 451 $ 816 $ 32,918 Impact of Provision for Allowance for credit losses Beginning Adopting (Release of) Ending Nine months ended September 30, 2020 Balance ASC 326 Credit Losses Charge-offs Recoveries Balance 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 Ending Balance, September 30, 2020 $ 19,789 $ 5,879 $ 8,174 $ 2,258 $ 1,334 $ 32,918 The ACL on loans excludes $2.2 million, $3.0 million and $4.0 million of allowance for unfunded commitments, recorded within Other Liabilities, as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively. The following tables presents the collateral dependent loans and the related ACL allocated by segment of loans as of September 30, 2021 and December 31, 2020: Accounts ACL September 30, 2021 Real Estate Receivable Equipment Other Total Allocation Commercial $ 195 $ - $ - $ - $ 195 $ - Leases - - 3,413 546 3,959 661 Commercial real estate - Investor 6,070 - - - 6,070 2,290 Commercial real estate - Owner occupied 4,373 - - 2,523 6,896 7 Construction 4,898 - - - 4,898 988 Residential real estate - Investor 998 - - - 998 - Residential real estate - Owner occupied 3,945 - - - 3,945 - Multifamily 1,889 - - - 1,889 90 HELOC 700 - - - 700 195 HELOC - Purchased 181 - - - 181 - Other - - - 2 2 2 Total $ 23,249 $ - $ 3,413 $ 3,071 $ 29,733 $ 4,233 Accounts ACL December 31, 2020 Real Estate Receivable Equipment Other Total Allocation Commercial $ - $ 1,070 $ - $ 55 $ 1,125 $ 56 Leases - - 2,377 597 2,974 880 Commercial real estate - Investor 4,179 - - - 4,179 84 Commercial real estate - Owner occupied 9,726 - - - 9,726 195 Construction 1,891 - - - 1,891 952 Residential real estate - Investor 928 - - - 928 - Residential real estate - Owner occupied 3,535 - - - 3,535 10 Multifamily 3,838 - - - 3,838 378 HELOC 1,053 - - - 1,053 78 HELOC - Purchased - - - - - - Other - - - 4 4 4 Total $ 25,150 $ 1,070 $ 2,377 $ 656 $ 29,253 $ 2,637 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, 2021 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 778 $ - $ 220 $ 998 $ 320,550 $ 321,548 $ 25 Leases - - 1,637 1,637 160,807 162,444 - Commercial real estate - Investor - 239 30 269 535,237 535,506 30 Commercial real estate - Owner occupied 812 672 2,258 3,742 326,906 330,648 - Construction - - 2,665 2,665 106,025 108,690 - Residential real estate - Investor - - 882 882 44,615 45,497 - Residential real estate - Owner occupied - 322 1,853 2,175 106,168 108,343 741 Multifamily 876 32 437 1,345 159,453 160,798 437 HELOC 344 - 77 421 69,230 69,651 - HELOC - Purchased - - 181 181 12,189 12,370 - Other 1 - - 1 12,446 12,447 - Total $ 2,811 $ 1,265 $ 10,240 $ 14,316 $ 1,853,626 $ 1,867,942 $ 1,233 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and December 31, 2020 1 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ - $ - $ 52 $ 52 $ 407,107 $ 407,159 $ - Leases 613 59 316 988 140,613 141,601 163 Commercial real estate - Investor 1,439 - 1,108 2,547 579,495 582,042 - Commercial real estate - Owner occupied 1,848 958 7,309 10,115 322,955 333,070 - Construction 1,237 - - 1,237 97,249 98,486 - Residential real estate - Investor 1,022 20 484 1,526 54,611 56,137 157 Residential real estate - Owner occupied 859 286 717 1,862 114,526 116,388 114 Multifamily 3,282 467 - 3,749 185,291 189,040 - HELOC 549 50 206 805 80,103 80,908 - HELOC - Purchased 47 - - 47 19,440 19,487 - Other 20 - - 20 10,513 10,533 - Total $ 10,916 $ 1,840 $ 10,192 $ 22,948 $ 2,011,903 $ 2,034,851 $ 434 1 Loans modified under the CARES Act are considered current if they are in compliance with the modified terms. There were 506 loans which totaled $237.8 million modified under the CARES Act. As of September 30, 2021, 12 loans of the original 506 loans deferred, or $8.8 million, had an active deferral request and were in compliance with modified terms; 494 loans which totaled $229.0 million had resumed payments or paid off. Details of loans in active deferral is below: September 30, 2021 1st Deferral 2nd Deferral 3rd Deferral Total Loans modified under CARES Act, in deferral $ - $ 6,752 $ 2,077 $ 8,829 Loans modified under CARES Act, in nonaccrual, within deferral above - 2,524 2,077 4,601 The table presents all nonaccrual loans as of September 30, 2021, and December 31, 2020: Nonaccrual loan detail September 30, 2021 December 31, 2020 Commercial $ 195 $ 1,125 Leases 3,959 2,638 Commercial real estate - Investor 6,070 1,632 Commercial real estate - Owner occupied 6,896 9,262 Construction 2,958 - Residential real estate - Investor 998 928 Residential real estate - Owner occupied 3,945 3,206 Multifamily 1,618 2,437 HELOC 700 1,052 HELOC - Purchased 181 - Other - - Total $ 27,520 $ 22,280 The Company recognized $243,000 of interest on nonaccrual loans during the three months ended September 30, 2021. 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. Credit quality indicators by loan segment and loan origination date at September 30, 2021 were as follows: Revolving Loans Converted Revolving To Term 2021 2020 2019 2018 2017 Prior Loans Loans Total Commercial Pass $ 64,298 $ 24,032 $ 26,420 $ 11,445 $ 4,172 $ 2,184 $ 186,201 $ 59 $ 318,811 Special Mention 287 357 177 - - - 1,449 - 2,270 Substandard 233 200 - 34 - - - - 467 Total commercial 64,818 24,589 26,597 11,479 4,172 2,184 187,650 59 321,548 Leases Pass 59,361 47,677 $ 36,332 10,311 1,752 2,588 - - 158,021 Special Mention - - - - - - - - - Substandard - - 2,918 664 35 806 - - 4,423 Total leases 59,361 47,677 39,250 10,975 1,787 3,394 - - 162,444 Commercial real estate - Investor Pass 109,776 146,497 107,124 62,359 44,644 42,916 2,697 - 516,013 Special Mention - - 10,607 - - 168 - - 10,775 Substandard 2,107 - 448 185 5,948 30 - - 8,718 Total commercial real estate - investor 111,883 146,497 118,179 62,544 50,592 43,114 2,697 - 535,506 Commercial real estate - Owner occupied Pass 85,407 67,186 42,218 41,444 38,798 45,990 2,179 - 323,222 Special Mention - - - - 215 - - - 215 Substandard - 3,493 1,686 - 1,008 1,024 - - 7,211 Total commercial real estate - owner occupied 85,407 70,679 43,904 41,444 40,021 47,014 2,179 - 330,648 Construction Pass 30,362 44,396 16,992 1,671 514 1,258 7,511 - 102,704 Special Mention - - 1,088 - - - - - 1,088 Substandard 174 - 2,784 1,940 - - - - 4,898 Total construction 30,536 44,396 20,864 3,611 514 1,258 7,511 - 108,690 Residential real estate - Investor Pass 1,877 6,148 10,909 6,383 6,867 10,229 1,930 - 44,343 Special Mention - - - - - - - - - Substandard - - - 156 388 610 - - 1,154 Total residential real estate - investor 1,877 6,148 10,909 6,539 7,255 10,839 1,930 - 45,497 Residential real estate - Owner occupied Pass 16,322 16,625 19,433 6,892 11,045 30,816 2,022 - 103,155 Special Mention 253 - - - - - - 427 680 Substandard 64 46 - 399 178 3,821 - - 4,508 Total residential real estate - owner occupied 16,639 16,671 19,433 7,291 11,223 34,637 2,022 427 108,343 Multifamily Pass 20,071 29,014 28,374 45,325 21,745 6,362 69 - 150,960 Special Mention - - 6,901 610 - - - - 7,511 Substandard - - - 1,580 747 - - - 2,327 Total multifamily 20,071 29,014 35,275 47,515 22,492 6,362 69 - 160,798 HELOC Pass 503 1,918 2,018 1,132 1,576 1,023 60,339 - 68,509 Special Mention - - - - - - 108 - 108 Substandard - 28 - 30 34 259 683 - 1,034 Total HELOC 503 1,946 2,018 1,162 1,610 1,282 61,130 - 69,651 HELOC - Purchased Pass - - - - - 12,189 - - 12,189 Special Mention - - - - - - - - - Substandard - - - - - 181 - - 181 Total HELOC - purchased - - - - - 12,370 - - 12,370 Other Pass 3,772 1,490 575 178 112 223 6,095 - 12,445 Special Mention - - - - - - - - - Substandard - - - 2 - - - - 2 Total other 3,772 1,490 575 180 112 223 6,095 - 12,447 Total loans Pass 391,749 384,983 290,395 187,140 131,225 155,778 269,043 59 1,810,372 Special Mention 540 357 18,773 610 215 168 1,557 427 22,647 Substandard 2,578 3,767 7,836 4,990 8,338 6,731 683 - 34,923 Total loans $ 394,867 $ 389,107 $ 317,004 $ 192,740 $ 139,778 $ 162,677 $ 271,283 $ 486 $ 1,867,942 Credit quality indicators by loan segment and loan origination date at December 31, 2020, were as follows: Revolving Loans Converted Revolving To Term 2020 2019 2018 2017 2016 Prior Loans Loans Total Commercial Pass $ 101,796 $ 42,294 $ 14,519 $ 6,265 $ 1,825 $ 1,691 $ 230,388 $ - $ 398,778 Special Mention 5,130 425 68 - 3 - 76 - 5,702 Substandard 273 52 1,524 - - - 830 - 2,679 Total commercial 107,199 42,771 16,111 6,265 1,828 1,691 231,294 - 407,159 Leases Pass 56,605 52,168 16,830 6,545 5,242 651 - - 138,041 Special Mention 175 163 - - - - - - 338 Substandard - 1,434 798 59 450 481 - - 3,222 Total leases 56,780 53,765 17,628 6,604 5,692 1,132 - - 141,601 Commercial real estate - Investor Pass 173,781 158,677 92,156 66,762 55,963 15,966 1,319 - 564,624 Special Mention 2,394 9,592 220 - 95 - - - 12,301 Substandard 2,709 1,126 71 - 340 871 - - 5,117 Total commercial real estate - investor 178,884 169,395 92,447 66,762 56,398 16,837 1,319 - 582,042 Commercial real estate - Owner occupied Pass 72,605 52,809 73,719 45,315 50,000 25,507 1,324 - 321,279 Special Mention 604 - - - - - - - 604 Substandard 1,564 2,154 1,780 1,664 501 3,524 - - 11,187 Total commercial real estate - owner occupied 74,773 54,963 75,499 46,979 50,501 29,031 1,324 - 333,070 Construction Pass 50,170 24,163 7,203 539 218 1,261 9,702 - 93,256 Special Mention 38 - - - - - - - 38 Substandard - 3,135 2,057 - - - - - 5,192 Total construction 50,208 27,298 9,260 539 218 1,261 9,702 - 98,486 Residential real estate - Investor Pass 9,371 14,194 8,522 7,775 2,431 11,184 1,144 - 54,621 Special Mention - - - - - - - - - Substandard 349 - 610 - 91 466 - - 1,516 Total residential real estate - investor 9,720 14,194 9,132 7,775 2,522 11,650 1,144 - 56,137 Residential real estate - Owner occupied Pass 18,308 23,450 10,808 15,409 10,394 31,325 2,654 - 112,348 Special Mention - - - - - - - - - Substandard 47 - 412 219 526 2,836 - - 4,040 Total residential real estate - owner occupied 18,355 23,450 11,220 15,628 10,920 34,161 2,654 - 116,388 Multifamily Pass 40,671 30,849 44,301 38,133 12,147 7,735 197 - 174,033 Special Mention - 6,901 - 548 - - - - 7,449 Substandard 69 - 4,254 927 118 2,190 - - 7,558 Total multifamily 40,740 37,750 48,555 39,608 12,265 9,925 197 - 189,040 HELOC Pass 2,511 2,174 1,679 2,120 504 803 69,483 - 79,274 Special Mention - - - - - - 94 - 94 Substandard - - 86 37 271 91 1,055 - 1,540 Total HELOC 2,511 2,174 1,765 2,157 775 894 70,632 - 80,908 HELOC - Purchased Pass - - - - - 19,487 - - 19,487 Special Mention - - - - - - - - - Substandard - - - - - - - - - Total HELOC - purchased - - - - - 19,487 - - 19,487 Other Pass 1,555 574 569 229 559 341 6,702 - 10,529 Special Mention - - - - - - - - - Substandard - - 4 - - - - - 4 Total other 1,555 574 573 229 559 341 6,702 - 10,533 Total loans Pass 527,373 401,352 270,306 189,092 139,283 115,951 322,913 - 1,966,270 Special Mention 8,341 17,081 288 548 98 - 170 - 26,526 Substandard 5,011 7,901 11,596 2,906 2,297 10,459 1,885 - 42,055 Total loans $ 540,725 $ 426,334 $ 282,190 $ 192,546 $ 141,678 $ 126,410 $ 324,968 $ - $ 2,034,851 The Company had $572,000 and $546,000 in residential real estate loans in the process of foreclosure as of September 30, 2021, and December 31, 2020, 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. There was no TDR activity for the three and nine months ended September 30, 2021. 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 1 HAMP: Home Affordable Modification Program TDRs are classified as being in default on a case-by-case basis when they fail to be in compliance with the modified terms. There was no TDR default activity for the periods ended September 30, 2021, and September 30, 2020, 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, 2021
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 tables: Three Months Ended Nine Months Ended September 30, September 30, Other real estate owned 2021 2020 2021 2020 Balance at beginning of period $ 1,877 $ 5,082 $ 2,474 $ 5,004 Property additions, net of acquisition adjustments 70 314 70 898 Less: Proceeds from property disposals, net of participation purchase and of gains/losses 37 2,664 567 2,952 Period valuation (write-up)/write-down (2) 46 65 264 Balance at end of period $ 1,912 $ 2,686 $ 1,912 $ 2,686 Activity in the valuation allowance was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Balance at beginning of period $ 1,296 $ 6,464 $ 1,643 $ 6,712 Provision for unrealized losses (2) 46 65 264 Reductions taken on sales (129) (4,897) (543) (5,363) Balance at end of period $ 1,165 $ 1,613 $ 1,165 $ 1,613 Expenses related to OREO, net of lease revenue includes: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Gain on sales, net $ (5) $ (165) $ (40) $ (188) Provision for unrealized losses (2) 46 65 264 Operating expenses 32 253 117 460 Less: Lease revenue - 9 4 31 Net OREO expense $ 25 $ 125 $ 138 $ 505

Deposits

Deposits	9 Months Ended
Deposits	Sep. 30, 2021
Deposits
Deposits	Note 6 – Deposits Major classifications of deposits were as follows: September 30, 2021 December 31, 2020 Noninterest bearing demand $ 1,037,638 $ 909,505 Savings 457,900 399,057 NOW accounts 537,547 486,612 Money market accounts 370,691 316,465 Certificates of deposit of less than $100,000 173,595 200,107 Certificates of deposit of $100,000 through $250,000 98,496 164,982 Certificates of deposit of more than $250,000 38,462 60,345 Total deposits $ 2,714,329 $ 2,537,073

Borrowings

Borrowings	9 Months Ended
Borrowings	Sep. 30, 2021
Borrowings
Borrowings	Note 7 – Borrowings The following table is a summary of borrowings as of September 30, 2021, and December 31, 2020. Junior subordinated debentures are discussed in more detail in Note 8: September 30, 2021 December 31, 2020 Securities sold under repurchase agreements $ 42,962 $ 66,980 Junior subordinated debentures 25,773 25,773 Subordinated debentures 59,190 - Senior notes 44,454 44,375 Notes payable and other borrowings 20,155 23,393 Total borrowings $ 192,534 $ 160,521 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 $43.0 million at September 30, 2021, and $67.0 million at December 31, 2020. The fair value of the pledged collateral was $113.8 million at September 30, 2021, and $94.4 million at December 31, 2020. At September 30, 2021, 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, 2021, and December 31, 2020 the Bank had no short-term advances outstanding under the FHLBC. The Bank also assumed $23.4 million of long-term FHLBC advances with the ABC Bank acquisition in 2018. At September 30, 2021, one advance remains in long-term status, with a total outstanding balance of $6.2 million, at a 2.83% interest rate, and is scheduled to mature on February 2, 2026. FHLBC stock held at September 30, 2021 was valued at $3.7 million, and any potential FHLBC advances were collateralized by loans with a principal balance of $553.6 million, which carried a FHLBC-calculated combined collateral value of $402.1 million. The Company had excess collateral of $269.7 million available to secure borrowings at September 30, 2021. The Company also had $44.5 million and $44.4 million of senior notes outstanding, net of deferred issuance costs, as of September 30, 2021 and December 31, 2020. 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, 2021, and December 31, 2020, unamortized debt issuance costs related to the senior notes were $546,000 and $625,000 , 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 $14.0 million is outstanding as of September 30, 2021, 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. On April 6, 2021, we sold and issued $60.0 million in aggregate principal amount of our 3.50% Fixed-to-Floating Rate Subordinated Notes due April 15, 2031 (the “Notes”). The Notes were offered and sold to eligible purchasers in a private offering in reliance on the exemption from the registration requirements of Section 4(a)(2) of the Securities Act of 1933, as amended and the provisions of Regulation D promulgated thereunder. The Company intends to use the net proceeds from the offering for general corporate purposes, which may include, without limitation, the redemption of existing senior debt, common stock repurchases and strategic acquisitions. The Notes bear interest at a fixed annual rate of 3.50%, from and including the date of issuance to but excluding April 15, 2026, payable semi-annually in arrears. From and including April 15, 2026 to, but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an interest rate per annum equal to Three-Month Term SOFR (as defined in the Note) plus 273 basis points, payable quarterly in arrears.

Junior Subordinated Debentures

Junior Subordinated Debentures	9 Months Ended
Junior Subordinated Debentures	Sep. 30, 2021
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 junior subordinated 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 quarters ended September 30, 2021 and September 30, 2020. 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, 2021, and December 31, 2020, the remaining unamortized debt issuance costs related to the junior subordinated debentures were $1,000 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, 2021
Equity Compensation Plans
Equity Compensation Plans	Note 9 – Equity Compensation Plans The Company’s 2019 Equity Incentive Plan, which authorized 600,000 shares for issuance under the plan, was approved at the May 2019 annual stockholders’ meeting. Following approval of such plan, no further awards will be granted under any other prior Company equity compensation plan. At the May 2021 annual stockholders’ meeting, the Company obtained stockholder approval to amend and restate the 2019 Equity Incentive Plan to increase the number of shares of common stock authorized for issuance under the plan by 1,200,000 shares, from 600,000 shares to 1,800,000 shares (the “2019 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, 2021, 1,418,520 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. 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 224,464 and 137,944 restricted stock units issued under the 2019 Plan during the nine months ended September 30, 2021 and September 30, 2020, 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 $1.2 million in the first nine months of 2021 and $1.6 million for the first nine months ended of 2020. A summary of changes in the Company’s unvested restricted awards for the nine months ended September 30, 2021, is as follows: September 30, 2021 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Unvested at January 1 532,609 $ 13.15 Granted 224,464 11.38 Vested (191,653) 13.95 Forfeited (42,111) 14.15 Unvested at September 30 523,309 $ 12.01 Total unrecognized compensation cost of restricted awards was $3.1 million as of September 30, 2021, which is expected to be recognized over a weighted-average period of 1.88 years.

Earnings Per Share

Earnings Per Share	9 Months Ended
Earnings Per Share	Sep. 30, 2021
Earnings Per Share
Earnings Per Share	Note 10 – Earnings Per Share The earnings per share, both basic and diluted, are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Basic earnings per share: Weighted-average common shares outstanding 28,707,737 29,559,026 28,925,612 29,708,239 Net income $ 8,412 $ 10,265 $ 29,111 $ 19,778 Basic earnings per share $ 0.30 $ 0.35 $ 1.01 $ 0.67 Diluted earnings per share: Weighted-average common shares outstanding 28,707,737 29,559,026 28,925,612 29,708,239 Dilutive effect of unvested restricted awards 1 522,543 543,275 533,194 553,482 Diluted average common shares outstanding 29,230,280 30,102,301 29,458,806 30,261,721 Net Income $ 8,412 $ 10,265 $ 29,111 $ 19,778 Diluted earnings per share $ 0.29 $ 0.34 $ 0.99 $ 0.65 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, 2021
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, 2021, the Bank exceeded those thresholds. At September 30, 2021, the Bank’s Tier 1 capital leverage ratio was 10.83%, an increase of 9 basis points from December 31, 2020, but is well above the 8.00% objective. The Bank’s total capital ratio was 16.69%, an increase of 168 basis points from December 31, 2020, 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, 2021, and December 31, 2020. 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 $3.0 billion. The Company is currently considered a “small bank holding company.” As we had total assets in excess of $3.0 billion as of June 30, 2021, we will no longer be considered a small bank holding company in March of 2022. 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, 2020, under the heading “Supervision and Regulation.” At September 30, 2021, and December 31, 2020, 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, 2021 Common equity tier 1 capital to risk weighted assets Consolidated $ 292,767 12.99 % $ 157,765 7.00 % N/A N/A Old Second Bank 351,663 15.65 157,293 7.00 $ 146,058 6.50 % Total capital to risk weighted assets Consolidated 401,027 17.80 236,561 10.50 N/A N/A Old Second Bank 374,923 16.69 235,871 10.50 224,639 10.00 Tier 1 capital to risk weighted assets Consolidated 317,767 14.10 191,562 8.50 N/A N/A Old Second Bank 351,663 15.65 190,999 8.50 179,764 8.00 Tier 1 capital to average assets Consolidated 317,767 9.81 129,569 4.00 N/A N/A Old Second Bank 351,663 10.83 129,885 4.00 162,356 5.00 December 31, 2020 Common equity tier 1 capital to risk weighted assets Consolidated $ 277,199 11.94 % $ 162,512 7.00 % N/A N/A Old Second Bank 318,466 13.75 162,128 7.00 $ 150,548 6.50 % Total capital to risk weighted assets Consolidated 331,178 14.26 243,855 10.50 N/A N/A Old Second Bank 347,408 15.00 243,186 10.50 231,605 10.00 Tier 1 capital to risk weighted assets Consolidated 302,199 13.01 197,440 8.50 N/A N/A Old Second Bank 318,466 13.75 196,870 8.50 185,289 8.00 Tier 1 capital to average assets Consolidated 302,199 10.21 118,393 4.00 N/A N/A Old Second Bank 318,466 10.74 118,609 4.00 148,262 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 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, 2021, the capital measures of the Company exclude $4.2 million, which is the modified CECL transition adjustment. 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”). The Repurchase Program expired on September 19, 2020, however, on October 20, 2020, the Company received notice of non-objection from the Federal Reserve Bank of Chicago to extend the Repurchase Program through October 20, 2021. 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 third quarter of 2021, we repurchased no shares of our common stock pursuant to the Repurchase Program. As of September 30, 2021, 1,485,307 shares had been repurchased since the program’s inception, and 9,519 shares remained available for repurchase under the Repurchase Program. The Repurchase Program expired on October 21, 2021.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
Fair Value Measurements	Sep. 30, 2021
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, 2021, and December 31, 2020, respectively, measured by the Company at fair value on a recurring basis: September 30, 2021 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 4,070 $ - $ - $ 4,070 U.S. government agencies - 33,575 - 33,575 U.S. government agencies mortgage-backed - 17,818 - 17,818 States and political subdivisions - 233,392 5,560 238,952 Corporate bonds - 4,992 - 4,992 Collateralized mortgage obligations - 165,414 - 165,414 Asset-backed securities - 189,338 - 189,338 Collateralized loan obligations - 61,029 - 61,029 Loans held-for-sale - 3,009 - 3,009 Mortgage servicing rights - - 5,320 5,320 Interest rate swap agreements - 5,292 - 5,292 Mortgage banking derivatives - 875 - 875 Total $ 4,070 $ 714,734 $ 10,880 $ 729,684 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 7,798 $ - $ 7,798 Total $ - $ 7,798 $ - $ 7,798 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 4,117 $ - $ - $ 4,117 U.S. government agencies - 6,657 - 6,657 U.S. government agencies mortgage-backed - 17,209 - 17,209 States and political subdivisions - 244,940 4,319 249,259 Collateralized mortgage obligations - 56,585 - 56,585 Asset-backed securities - 131,818 - 131,818 Collateralized loan obligations - 30,533 - 30,533 Loans held-for-sale - 12,611 - 12,611 Mortgage servicing rights - - 4,224 4,224 Interest rate swap agreements - 9,388 - 9,388 Mortgage banking derivatives - 840 - 840 Total $ 4,117 $ 510,581 $ 8,543 $ 523,241 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 13,159 $ - $ 13,159 Total $ - $ 13,159 $ - $ 13,159 The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are as follows: Nine Months Ended September 30, 2021 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2021 $ 4,319 $ 4,224 Total gains or losses Included in earnings (7) 840 Included in other comprehensive income 812 - Purchases, issuances, sales, and settlements Purchases 748 - Issuances - 1,298 Settlements (312) (1,042) Ending balance September 30, 2021 $ 5,560 $ 5,320 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 The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of September 30, 2021: Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 5,320 Discounted Cash Flow Discount Rate 11.0 - 15.0% 11.0 % Prepayment Speed 0.0 - 49.6% 15.5 % The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2020: Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 4,224 Discounted Cash Flow Discount Rate 11.0 - 15.0% 11.0 % Prepayment Speed 5.5 - 59.1% 19.5 % In addition to the above, Level 3 fair value measurement included $5.6 million for state and political subdivisions representing various local municipality securities at September 30, 2021. 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. The state and political subdivisions securities balance in Level 3 fair value at September 30, 2020, was $4.8 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, 2021, and December 31, 2020, 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, 2021 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 7,187 $ 7,187 Other real estate owned, net 2 - - 1,912 1,912 Total $ - $ - $ 9,099 $ 9,099 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 $11.0 million and a valuation allowance of $3.8 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $1.2 million for the nine months ended September 30, 2021. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $1.9 million at September 30, 2021, which is made up of the outstanding balance of $3.1 million, net of a valuation allowance of $1.2 million. December 31, 2020 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 9,675 $ 9,675 Other real estate owned, net 2 - - 2,474 2,474 Total $ - $ - $ 12,149 $ 12,149 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans; had a carrying amount of $12.3 million and a valuation allowance of $2.6 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $1.4 for the year December 31, 2020. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $2.5 million at December 31, 2020, which is made up of the outstanding balance of $4.1 million, net of a valuation allowance of $1.6 million. 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, 2021
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. September 30, 2021 and December 31, 2020, 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, 2021 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 26,705 $ 26,705 $ 26,705 $ - $ - Interest earning deposits with financial institutions 492,548 492,548 492,548 - - Securities available-for-sale 715,188 715,188 4,070 705,558 5,560 FHLBC and FRBC stock 9,917 9,917 - 9,917 - Loans held-for-sale 3,009 3,009 - 3,009 - Net loans 1,840,993 1,849,933 - - 1,849,933 Mortgage servicing rights 5,320 5,320 - - 5,320 Interest rate swap agreements 5,292 5,292 - 5,292 - Interest rate lock commitments and forward contracts 875 875 - 875 - Interest receivable on securities and loans 8,956 8,956 - 8,956 - Financial liabilities: Noninterest bearing deposits $ 1,037,638 $ 1,037,638 $ 1,037,638 $ - $ - Interest bearing deposits 1,676,691 1,677,796 - 1,677,796 - Securities sold under repurchase agreements 42,962 42,962 - 42,962 - Junior subordinated debentures 25,773 18,557 - 18,557 - Subordinated debentures 59,190 60,390 60,390 Senior notes 44,454 44,724 44,724 - - Note payable and other borrowings 20,155 20,600 - 20,600 - Interest rate swap agreements 7,767 7,767 - 7,767 - Interest payable on deposits and borrowings 1,920 1,920 - 1,920 - December 31, 2020 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 24,306 $ 24,306 $ 24,306 $ - $ - Interest earning deposits with financial institutions 305,597 305,597 305,597 - - Securities available-for-sale 496,178 496,178 4,117 487,742 4,319 FHLBC and FRBC stock 9,917 9,917 - 9,917 - Loans held-for-sale 12,611 12,611 - 12,611 - Net loans 2,000,996 2,009,773 - - 2,009,773 Mortgage servicing rights 4,224 4,224 - - 4,224 Interest rate swap agreements 9,388 9,388 - 9,388 - Interest rate lock commitments and forward contracts 840 840 - 840 - Interest receivable on securities and loans 9,698 9,698 - 9,698 - Financial liabilities: Noninterest bearing deposits $ 909,505 $ 909,505 $ 909,505 $ - $ - Interest bearing deposits 1,627,568 1,630,109 - 1,630,109 - Securities sold under repurchase agreements 66,980 66,980 - 66,980 - Junior subordinated debentures 25,773 14,658 - 14,658 - Senior notes 44,375 44,600 44,600 - - Note payable and other borrowings 23,393 24,043 - 24,043 - Interest rate swap agreements 13,071 13,071 - 13,071 - Interest payable on deposits and borrowings 418 418 - 418 -

Derivatives, Hedging Activities

Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk	9 Months Ended
	Sep. 30, 2021
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 $189,000 will be reclassified as an increase to interest income and an additional $175,000 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, 2021, 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 $740,000 and $1.4 million of cash collateral related to one correspondent financial institution to cover the loan pool hedge mark to market valuation at September 30, 2021, and December 31, 2020, respectively. 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 and no investment securities were required to be pledged to any correspondent financial institution at September 30, 2021 and December 31, 2020. At September 30, 2021, the notional amount of non-hedging interest rate swaps was $167.2 million with a weighted average maturity of 4.1 years. At December 31, 2020, the notional amount of non-hedging interest rate swaps was $189.1 million with a weighted average maturity of 4.7 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, 2021 and December 31, 2020. Fair Value of Derivative Instruments September 30, 2021 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swap agreements 2 75,774 Other Assets 1,567 Other Liabilities 4,042 Total derivatives designated as hedging instruments 1,567 4,042 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 26 167,218 Other Assets 3,725 Other Liabilities 3,725 Interest rate lock commitments and forward contracts 132 46,753 Other Assets 875 Other Liabilities - Other contracts 3 17,297 Other Assets - Other Liabilities 31 Total derivatives not designated as hedging instruments 4,600 3,756 December 31, 2020 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swap agreements 2 75,774 Other Assets 2,697 Other Liabilities 6,380 Total derivatives designated as hedging instruments 2,697 6,380 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 28 189,126 Other Assets 6,691 Other Liabilities 6,691 Interest rate lock commitments and forward contracts 205 84,472 Other Assets 840 Other Liabilities - Other contracts 4 26,523 Other Assets - Other Liabilities 88 Total derivatives not designated as hedging instruments 7,531 6,779 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 $1.8 million as of September 30, 2021, and $3.3 million as of September 30, 2020. The amount of the gain or (loss) reclassified from AOCI to interest income or interest expense on the income statement totaled $40,000 and ($72,000) for the nine months ended September 30, 2021, and September 30, 2020, 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, 2021, and December 31, 2020. The following table is a summary of letter of credit commitments: September 30, 2021 December 31, 2020 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ 329 $ 8,446 $ 8,775 $ 329 $ 9,051 $ 9,380 Commercial standby - - - - - - Performance standby 532 6,836 7,368 356 4,517 4,873 861 15,282 16,143 685 13,568 14,253 Non-borrower: Performance standby - 67 67 - 67 67 Total letters of credit $ 861 $ 15,349 $ 16,210 $ 685 $ 13,635 $ 14,320 Unused loan commitments: $ 126,753 $ 330,934 $ 457,687 $ 88,883 $ 316,298 $ 405,181 As of September 30, 2021, the Company evaluated current market conditions, including the impacts related to COVID-19 and market interest rates during the third quarter of 2021, and based on that analysis under the CECL methodology, the Company determined credit losses related to unfunded commitments totaled $2.2 million. The decrease in the ACL for unfunded commitments of $47,000 for the third quarter of 2021, compared to the prior quarter end, is primarily related to a decrease in the commercial unfunded commitments funding rate assumptions based on our analysis of the last 12 months of utilization. The Company will continue to assess the credit risk at least quarterly, and adjust the allowance for unfunded commitments, which is carried within other liabilities on our Consolidated Balance Sheet, as needed, with the appropriate offsetting entry to the provision for credit losses on our Consolidated Statements of Income.

Basis of Presentation and Cha_2

Basis of Presentation and Changes in Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2021
Basis of Presentation and Changes in Significant Accounting Policies
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the Financial Standards Board, or FASB, issued Accounting Standards Update (ASU) No. 2016-13, “ Financial Instruments – Measurement of Credit Losses on Financial Instruments (Topic 326) Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies Summary of Significant Accounting Policies
Subsequent Events	Subsequent Events On October 19, 2021, the Company’s Board of Directors declared a cash dividend of $0.05 per share payable on November 8, 2021, to stockholders of record as of October 29, 2021; dividends of $1.4 million are scheduled to be paid to stockholders on November 8, 2021.

Securities (Tables)

Securities (Tables)	9 Months Ended
Securities (Tables)	Sep. 30, 2021
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, 2021 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 4,017 $ 53 $ - $ 4,070 U.S. government agencies 33,915 - (340) 33,575 U.S. government agencies mortgage-backed 17,269 764 (215) 17,818 States and political subdivisions 222,833 16,758 (639) 238,952 Corporate bonds 5,000 - (8) 4,992 Collateralized mortgage obligations 163,756 1,966 (308) 165,414 Asset-backed securities 187,825 1,646 (133) 189,338 Collateralized loan obligations 61,085 18 (74) 61,029 Total securities available-for-sale $ 695,700 $ 21,205 $ (1,717) $ 715,188 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2020 Cost 1 Gains Losses Value Securities available-for-sale U.S. Treasury $ 4,014 $ 103 $ - $ 4,117 U.S. government agencies 6,811 - (154) 6,657 U.S. government agencies mortgage-backed 16,098 1,112 (1) 17,209 States and political subdivisions 229,352 21,269 (1,362) 249,259 Collateralized mortgage obligations 53,999 2,866 (280) 56,585 Asset-backed securities 130,959 1,370 (511) 131,818 Collateralized loan obligations 30,728 15 (210) 30,533 Total securities available-for-sale $ 471,961 $ 26,735 $ (2,518) $ 496,178 1 Excludes accrued interest receivable of $2.8 million and $2.7 million at September 30, 2021 and December 31, 2020, respectively, that is recorded in other assets on the consolidated balance sheet.
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 $ 4,227 1.87 % $ 4,281 Due after one year through five years 36,288 0.79 36,240 Due after five years through ten years 28,159 2.35 29,387 Due after ten years 197,091 3.01 211,681 265,765 2.62 281,589 Mortgage-backed and collateralized mortgage obligations 181,025 1.73 183,232 Asset-backed securities 187,825 1.14 189,338 Collateralized loan obligations 61,085 1.40 61,029 Total securities available-for-sale $ 695,700 1.88 % $ 715,188
Schedule of amortized cost and fair value of securities that exceed 10% of stockholders equity	At September 30, 2021, 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, 2021 Amortized Fair Issuer Cost Value Towd Point Mortgage Trust $ 32,836 $ 34,339
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, 2021 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 2 $ 229 $ 28,066 4 $ 111 $ 5,509 6 $ 340 $ 33,575 U.S. government agencies mortgage-backed 6 215 6,084 - - - 6 215 6,084 States and political subdivisions 2 23 1,490 1 616 4,085 3 639 5,575 Corporate bonds 1 8 4,992 - - - 1 8 4,992 Collateralized mortgage obligations 7 244 63,495 1 64 7,531 8 308 71,026 Asset-backed securities 5 79 35,048 1 54 3,270 6 133 38,318 Collateralized loan obligations 6 27 20,386 2 47 10,625 8 74 31,011 Total securities available-for-sale 29 $ 825 $ 159,561 9 $ 892 $ 31,020 38 $ 1,717 $ 190,581 Less than 12 months 12 months or more December 31, 2020 in an unrealized loss position in an unrealized loss position Total Number of Unrealized Fair Number of Unrealized Fair Number of Unrealized Fair Securities available-for-sale Securities Losses Value Securities Losses Value Securities Losses Value U.S. government agencies - $ - $ - 4 $ 154 $ 6,657 4 $ 154 $ 6,657 U.S. government agencies mortgage-backed 1 1 141 - - - 1 1 141 States and political subdivisions - - - 1 1,362 3,433 1 1,362 3,433 Collateralized mortgage obligations 4 279 8,142 1 1 146 5 280 8,288 Asset-backed securities 1 2 251 3 509 49,572 4 511 49,823 Collateralized loan obligations 1 31 7,468 4 179 21,477 5 210 28,945 Total securities available-for-sale 7 $ 313 $ 16,002 13 $ 2,205 $ 81,285 20 $ 2,518 $ 97,287
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 2021 2020 2021 2020 Proceeds from sales of securities $ 26,873 $ - $ 35,075 $ 18,006 Gross realized gains on securities $ 262 $ - $ 267 $ 17 Gross realized losses on securities (18) (1) (21) (42) Net realized gains (losses) $ 244 $ (1) $ 246 $ (25) Income tax (expense) benefit on net realized gains (losses) $ (69) $ - $ (70) $ 7 Effective tax rate applied 28.3 % 0.0 % 28.5 % 28.0 %

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, 2021
Loans and Allowance for Credit Losses on Loans
Schedule of major classifications of loans	September 30, 2021 December 31, 2020 Commercial 1 $ 321,548 $ 407,159 Leases 162,444 141,601 Commercial real estate - Investor 535,506 582,042 Commercial real estate - Owner occupied 330,648 333,070 Construction 108,690 98,486 Residential real estate - Investor 45,497 56,137 Residential real estate - Owner occupied 108,343 116,388 Multifamily 160,798 189,040 HELOC 69,651 80,908 HELOC - Purchased 12,370 19,487 Other 2 12,447 10,533 Total loans 1,867,942 2,034,851 Allowance for credit losses on loans (26,949) (33,855) Net loans 3 $ 1,840,993 $ 2,000,996 1 Includes $34.7 million and $74.1 million of Paycheck Protection Program (“PPP”) loans at September 30, 2021 and December 31, 2020, respectively. 2 The “Other” segment includes consumer and overdrafts in this table and in subsequent tables within Note 4 - Loans and Allowance for Credit Losses on Loans. 3 Excludes accrued interest receivable of $6.1 million and $7.0 million at September 30, 2021 and December 31, 2020, respectively, that is recorded in other assets on the consolidated balance sheet.
Schedule of changes in the allowance for loan losses by segment of loans based on method of impairment	Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Three months ended September 30, 2021 Commercial $ 2,601 $ 82 $ 23 $ 25 $ 2,685 Leases 3,388 (41) 4 - 3,343 Commercial real estate - Investor 10,437 (890) 101 18 9,464 Commercial real estate - Owner occupied 1,086 99 5 7 1,187 Construction 3,048 (175) - - 2,873 Residential real estate - Investor 975 (287) - 7 695 Residential real estate - Owner occupied 1,866 (116) - 18 1,768 Multifamily 3,266 (121) 183 - 2,962 HELOC 1,604 13 - 28 1,645 HELOC - Purchased 229 (36) - - 193 Other 139 19 53 29 134 Ending Balance, September 30, 2021 $ 28,639 $ (1,453) $ 369 $ 132 $ 26,949 Provision for Beginning (Release of) Ending Allowance for credit losses Balance Credit Losses Charge-offs Recoveries Balance Nine months ended September 30, 2021 Commercial $ 2,812 $ 43 $ 232 $ 62 $ 2,685 Leases 3,888 (513) 32 - 3,343 Commercial real estate - Investor 9,205 302 101 58 9,464 Commercial real estate - Owner occupied 2,251 (1,250) 39 225 1,187 Construction 4,054 (1,181) - - 2,873 Residential real estate - Investor 1,740 (1,328) - 283 695 Residential real estate - Owner occupied 2,714 (1,074) - 128 1,768 Multifamily 3,625 (480) 183 - 2,962 HELOC 1,749 (216) 17 129 1,645 HELOC - Purchased 199 (6) - - 193 Other 1,618 (1,483) 108 107 134 Ending Balance, September 30, 2021 $ 33,855 $ (7,186) $ 712 $ 992 $ 26,949 Impact of Provision for Beginning Adopting (Release of) Ending Allowance for credit losses Balance ASC 326 Credit 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 Residential real estate - Investor 2,217 - (290) 3 18 1,942 Residential 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 700 - 64 53 41 752 Ending Balance, September 30, 2020 $ 31,273 $ - $ 1,280 $ 451 $ 816 $ 32,918 Impact of Provision for Allowance for credit losses Beginning Adopting (Release of) Ending Nine months ended September 30, 2020 Balance ASC 326 Credit Losses Charge-offs Recoveries Balance 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 Ending Balance, September 30, 2020 $ 19,789 $ 5,879 $ 8,174 $ 2,258 $ 1,334 $ 32,918 The ACL on loans excludes $2.2 million, $3.0 million and $4.0 million of allowance for unfunded commitments, recorded within Other Liabilities, as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively. The following tables presents the collateral dependent loans and the related ACL allocated by segment of loans as of September 30, 2021 and December 31, 2020: Accounts ACL September 30, 2021 Real Estate Receivable Equipment Other Total Allocation Commercial $ 195 $ - $ - $ - $ 195 $ - Leases - - 3,413 546 3,959 661 Commercial real estate - Investor 6,070 - - - 6,070 2,290 Commercial real estate - Owner occupied 4,373 - - 2,523 6,896 7 Construction 4,898 - - - 4,898 988 Residential real estate - Investor 998 - - - 998 - Residential real estate - Owner occupied 3,945 - - - 3,945 - Multifamily 1,889 - - - 1,889 90 HELOC 700 - - - 700 195 HELOC - Purchased 181 - - - 181 - Other - - - 2 2 2 Total $ 23,249 $ - $ 3,413 $ 3,071 $ 29,733 $ 4,233 Accounts ACL December 31, 2020 Real Estate Receivable Equipment Other Total Allocation Commercial $ - $ 1,070 $ - $ 55 $ 1,125 $ 56 Leases - - 2,377 597 2,974 880 Commercial real estate - Investor 4,179 - - - 4,179 84 Commercial real estate - Owner occupied 9,726 - - - 9,726 195 Construction 1,891 - - - 1,891 952 Residential real estate - Investor 928 - - - 928 - Residential real estate - Owner occupied 3,535 - - - 3,535 10 Multifamily 3,838 - - - 3,838 378 HELOC 1,053 - - - 1,053 78 HELOC - Purchased - - - - - - Other - - - 4 4 4 Total $ 25,150 $ 1,070 $ 2,377 $ 656 $ 29,253 $ 2,637
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, 2021 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ 778 $ - $ 220 $ 998 $ 320,550 $ 321,548 $ 25 Leases - - 1,637 1,637 160,807 162,444 - Commercial real estate - Investor - 239 30 269 535,237 535,506 30 Commercial real estate - Owner occupied 812 672 2,258 3,742 326,906 330,648 - Construction - - 2,665 2,665 106,025 108,690 - Residential real estate - Investor - - 882 882 44,615 45,497 - Residential real estate - Owner occupied - 322 1,853 2,175 106,168 108,343 741 Multifamily 876 32 437 1,345 159,453 160,798 437 HELOC 344 - 77 421 69,230 69,651 - HELOC - Purchased - - 181 181 12,189 12,370 - Other 1 - - 1 12,446 12,447 - Total $ 2,811 $ 1,265 $ 10,240 $ 14,316 $ 1,853,626 $ 1,867,942 $ 1,233 90 days or 90 Days or Greater Past 30-59 Days 60-89 Days Greater Past Total Past Due and December 31, 2020 1 Past Due Past Due Due Due Current Total Loans Accruing Commercial $ - $ - $ 52 $ 52 $ 407,107 $ 407,159 $ - Leases 613 59 316 988 140,613 141,601 163 Commercial real estate - Investor 1,439 - 1,108 2,547 579,495 582,042 - Commercial real estate - Owner occupied 1,848 958 7,309 10,115 322,955 333,070 - Construction 1,237 - - 1,237 97,249 98,486 - Residential real estate - Investor 1,022 20 484 1,526 54,611 56,137 157 Residential real estate - Owner occupied 859 286 717 1,862 114,526 116,388 114 Multifamily 3,282 467 - 3,749 185,291 189,040 - HELOC 549 50 206 805 80,103 80,908 - HELOC - Purchased 47 - - 47 19,440 19,487 - Other 20 - - 20 10,513 10,533 - Total $ 10,916 $ 1,840 $ 10,192 $ 22,948 $ 2,011,903 $ 2,034,851 $ 434 1 Loans modified under the CARES Act are considered current if they are in compliance with the modified terms.
Schedule of Loans Inactive Deferral	September 30, 2021 1st Deferral 2nd Deferral 3rd Deferral Total Loans modified under CARES Act, in deferral $ - $ 6,752 $ 2,077 $ 8,829 Loans modified under CARES Act, in nonaccrual, within deferral above - 2,524 2,077 4,601
Schedule of loans on nonaccrual for which there was no related allowance	Nonaccrual loan detail September 30, 2021 December 31, 2020 Commercial $ 195 $ 1,125 Leases 3,959 2,638 Commercial real estate - Investor 6,070 1,632 Commercial real estate - Owner occupied 6,896 9,262 Construction 2,958 - Residential real estate - Investor 998 928 Residential real estate - Owner occupied 3,945 3,206 Multifamily 1,618 2,437 HELOC 700 1,052 HELOC - Purchased 181 - Other - - Total $ 27,520 $ 22,280
Schedule of credit quality indicators by class of loans	Revolving Loans Converted Revolving To Term 2021 2020 2019 2018 2017 Prior Loans Loans Total Commercial Pass $ 64,298 $ 24,032 $ 26,420 $ 11,445 $ 4,172 $ 2,184 $ 186,201 $ 59 $ 318,811 Special Mention 287 357 177 - - - 1,449 - 2,270 Substandard 233 200 - 34 - - - - 467 Total commercial 64,818 24,589 26,597 11,479 4,172 2,184 187,650 59 321,548 Leases Pass 59,361 47,677 $ 36,332 10,311 1,752 2,588 - - 158,021 Special Mention - - - - - - - - - Substandard - - 2,918 664 35 806 - - 4,423 Total leases 59,361 47,677 39,250 10,975 1,787 3,394 - - 162,444 Commercial real estate - Investor Pass 109,776 146,497 107,124 62,359 44,644 42,916 2,697 - 516,013 Special Mention - - 10,607 - - 168 - - 10,775 Substandard 2,107 - 448 185 5,948 30 - - 8,718 Total commercial real estate - investor 111,883 146,497 118,179 62,544 50,592 43,114 2,697 - 535,506 Commercial real estate - Owner occupied Pass 85,407 67,186 42,218 41,444 38,798 45,990 2,179 - 323,222 Special Mention - - - - 215 - - - 215 Substandard - 3,493 1,686 - 1,008 1,024 - - 7,211 Total commercial real estate - owner occupied 85,407 70,679 43,904 41,444 40,021 47,014 2,179 - 330,648 Construction Pass 30,362 44,396 16,992 1,671 514 1,258 7,511 - 102,704 Special Mention - - 1,088 - - - - - 1,088 Substandard 174 - 2,784 1,940 - - - - 4,898 Total construction 30,536 44,396 20,864 3,611 514 1,258 7,511 - 108,690 Residential real estate - Investor Pass 1,877 6,148 10,909 6,383 6,867 10,229 1,930 - 44,343 Special Mention - - - - - - - - - Substandard - - - 156 388 610 - - 1,154 Total residential real estate - investor 1,877 6,148 10,909 6,539 7,255 10,839 1,930 - 45,497 Residential real estate - Owner occupied Pass 16,322 16,625 19,433 6,892 11,045 30,816 2,022 - 103,155 Special Mention 253 - - - - - - 427 680 Substandard 64 46 - 399 178 3,821 - - 4,508 Total residential real estate - owner occupied 16,639 16,671 19,433 7,291 11,223 34,637 2,022 427 108,343 Multifamily Pass 20,071 29,014 28,374 45,325 21,745 6,362 69 - 150,960 Special Mention - - 6,901 610 - - - - 7,511 Substandard - - - 1,580 747 - - - 2,327 Total multifamily 20,071 29,014 35,275 47,515 22,492 6,362 69 - 160,798 HELOC Pass 503 1,918 2,018 1,132 1,576 1,023 60,339 - 68,509 Special Mention - - - - - - 108 - 108 Substandard - 28 - 30 34 259 683 - 1,034 Total HELOC 503 1,946 2,018 1,162 1,610 1,282 61,130 - 69,651 HELOC - Purchased Pass - - - - - 12,189 - - 12,189 Special Mention - - - - - - - - - Substandard - - - - - 181 - - 181 Total HELOC - purchased - - - - - 12,370 - - 12,370 Other Pass 3,772 1,490 575 178 112 223 6,095 - 12,445 Special Mention - - - - - - - - - Substandard - - - 2 - - - - 2 Total other 3,772 1,490 575 180 112 223 6,095 - 12,447 Total loans Pass 391,749 384,983 290,395 187,140 131,225 155,778 269,043 59 1,810,372 Special Mention 540 357 18,773 610 215 168 1,557 427 22,647 Substandard 2,578 3,767 7,836 4,990 8,338 6,731 683 - 34,923 Total loans $ 394,867 $ 389,107 $ 317,004 $ 192,740 $ 139,778 $ 162,677 $ 271,283 $ 486 $ 1,867,942 Credit quality indicators by loan segment and loan origination date at December 31, 2020, were as follows: Revolving Loans Converted Revolving To Term 2020 2019 2018 2017 2016 Prior Loans Loans Total Commercial Pass $ 101,796 $ 42,294 $ 14,519 $ 6,265 $ 1,825 $ 1,691 $ 230,388 $ - $ 398,778 Special Mention 5,130 425 68 - 3 - 76 - 5,702 Substandard 273 52 1,524 - - - 830 - 2,679 Total commercial 107,199 42,771 16,111 6,265 1,828 1,691 231,294 - 407,159 Leases Pass 56,605 52,168 16,830 6,545 5,242 651 - - 138,041 Special Mention 175 163 - - - - - - 338 Substandard - 1,434 798 59 450 481 - - 3,222 Total leases 56,780 53,765 17,628 6,604 5,692 1,132 - - 141,601 Commercial real estate - Investor Pass 173,781 158,677 92,156 66,762 55,963 15,966 1,319 - 564,624 Special Mention 2,394 9,592 220 - 95 - - - 12,301 Substandard 2,709 1,126 71 - 340 871 - - 5,117 Total commercial real estate - investor 178,884 169,395 92,447 66,762 56,398 16,837 1,319 - 582,042 Commercial real estate - Owner occupied Pass 72,605 52,809 73,719 45,315 50,000 25,507 1,324 - 321,279 Special Mention 604 - - - - - - - 604 Substandard 1,564 2,154 1,780 1,664 501 3,524 - - 11,187 Total commercial real estate - owner occupied 74,773 54,963 75,499 46,979 50,501 29,031 1,324 - 333,070 Construction Pass 50,170 24,163 7,203 539 218 1,261 9,702 - 93,256 Special Mention 38 - - - - - - - 38 Substandard - 3,135 2,057 - - - - - 5,192 Total construction 50,208 27,298 9,260 539 218 1,261 9,702 - 98,486 Residential real estate - Investor Pass 9,371 14,194 8,522 7,775 2,431 11,184 1,144 - 54,621 Special Mention - - - - - - - - - Substandard 349 - 610 - 91 466 - - 1,516 Total residential real estate - investor 9,720 14,194 9,132 7,775 2,522 11,650 1,144 - 56,137 Residential real estate - Owner occupied Pass 18,308 23,450 10,808 15,409 10,394 31,325 2,654 - 112,348 Special Mention - - - - - - - - - Substandard 47 - 412 219 526 2,836 - - 4,040 Total residential real estate - owner occupied 18,355 23,450 11,220 15,628 10,920 34,161 2,654 - 116,388 Multifamily Pass 40,671 30,849 44,301 38,133 12,147 7,735 197 - 174,033 Special Mention - 6,901 - 548 - - - - 7,449 Substandard 69 - 4,254 927 118 2,190 - - 7,558 Total multifamily 40,740 37,750 48,555 39,608 12,265 9,925 197 - 189,040 HELOC Pass 2,511 2,174 1,679 2,120 504 803 69,483 - 79,274 Special Mention - - - - - - 94 - 94 Substandard - - 86 37 271 91 1,055 - 1,540 Total HELOC 2,511 2,174 1,765 2,157 775 894 70,632 - 80,908 HELOC - Purchased Pass - - - - - 19,487 - - 19,487 Special Mention - - - - - - - - - Substandard - - - - - - - - - Total HELOC - purchased - - - - - 19,487 - - 19,487 Other Pass 1,555 574 569 229 559 341 6,702 - 10,529 Special Mention - - - - - - - - - Substandard - - 4 - - - - - 4 Total other 1,555 574 573 229 559 341 6,702 - 10,533 Total loans Pass 527,373 401,352 270,306 189,092 139,283 115,951 322,913 - 1,966,270 Special Mention 8,341 17,081 288 548 98 - 170 - 26,526 Substandard 5,011 7,901 11,596 2,906 2,297 10,459 1,885 - 42,055 Total loans $ 540,725 $ 426,334 $ 282,190 $ 192,546 $ 141,678 $ 126,410 $ 324,968 $ - $ 2,034,851
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 1 HAMP: Home Affordable Modification Program

Other Real Estate Owned (Tables

Other Real Estate Owned (Tables)	9 Months Ended
Other Real Estate Owned (Tables)	Sep. 30, 2021
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 2021 2020 2021 2020 Balance at beginning of period $ 1,877 $ 5,082 $ 2,474 $ 5,004 Property additions, net of acquisition adjustments 70 314 70 898 Less: Proceeds from property disposals, net of participation purchase and of gains/losses 37 2,664 567 2,952 Period valuation (write-up)/write-down (2) 46 65 264 Balance at end of period $ 1,912 $ 2,686 $ 1,912 $ 2,686
Schedule of activity in valuation allowance	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Balance at beginning of period $ 1,296 $ 6,464 $ 1,643 $ 6,712 Provision for unrealized losses (2) 46 65 264 Reductions taken on sales (129) (4,897) (543) (5,363) Balance at end of period $ 1,165 $ 1,613 $ 1,165 $ 1,613
Schedule of expenses related to foreclosed assets, net of lease revenue	Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Gain on sales, net $ (5) $ (165) $ (40) $ (188) Provision for unrealized losses (2) 46 65 264 Operating expenses 32 253 117 460 Less: Lease revenue - 9 4 31 Net OREO expense $ 25 $ 125 $ 138 $ 505

Deposits (Tables)

Deposits (Tables)	9 Months Ended
Deposits (Tables)	Sep. 30, 2021
Deposits
Schedule of major classifications of deposits	September 30, 2021 December 31, 2020 Noninterest bearing demand $ 1,037,638 $ 909,505 Savings 457,900 399,057 NOW accounts 537,547 486,612 Money market accounts 370,691 316,465 Certificates of deposit of less than $100,000 173,595 200,107 Certificates of deposit of $100,000 through $250,000 98,496 164,982 Certificates of deposit of more than $250,000 38,462 60,345 Total deposits $ 2,714,329 $ 2,537,073

Borrowings (Tables)

Borrowings (Tables)	9 Months Ended
Borrowings (Tables)	Sep. 30, 2021
Borrowings
Summary of borrowings and junior subordinated debentures	September 30, 2021 December 31, 2020 Securities sold under repurchase agreements $ 42,962 $ 66,980 Junior subordinated debentures 25,773 25,773 Subordinated debentures 59,190 - Senior notes 44,454 44,375 Notes payable and other borrowings 20,155 23,393 Total borrowings $ 192,534 $ 160,521

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	9 Months Ended
Equity Compensation Plans (Tables)	Sep. 30, 2021
Equity Compensation Plans
Summary of changes in nonvested shares of restricted share rights	September 30, 2021 Weighted Restricted Average Stock Shares Grant Date and Units Fair Value Unvested at January 1 532,609 $ 13.15 Granted 224,464 11.38 Vested (191,653) 13.95 Forfeited (42,111) 14.15 Unvested at September 30 523,309 $ 12.01

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
Earnings Per Share (Tables)	Sep. 30, 2021
Earnings Per Share
Schedule of Earnings Per Share	Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Basic earnings per share: Weighted-average common shares outstanding 28,707,737 29,559,026 28,925,612 29,708,239 Net income $ 8,412 $ 10,265 $ 29,111 $ 19,778 Basic earnings per share $ 0.30 $ 0.35 $ 1.01 $ 0.67 Diluted earnings per share: Weighted-average common shares outstanding 28,707,737 29,559,026 28,925,612 29,708,239 Dilutive effect of unvested restricted awards 1 522,543 543,275 533,194 553,482 Diluted average common shares outstanding 29,230,280 30,102,301 29,458,806 30,261,721 Net Income $ 8,412 $ 10,265 $ 29,111 $ 19,778 Diluted earnings per share $ 0.29 $ 0.34 $ 0.99 $ 0.65 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, 2021
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, 2021 Common equity tier 1 capital to risk weighted assets Consolidated $ 292,767 12.99 % $ 157,765 7.00 % N/A N/A Old Second Bank 351,663 15.65 157,293 7.00 $ 146,058 6.50 % Total capital to risk weighted assets Consolidated 401,027 17.80 236,561 10.50 N/A N/A Old Second Bank 374,923 16.69 235,871 10.50 224,639 10.00 Tier 1 capital to risk weighted assets Consolidated 317,767 14.10 191,562 8.50 N/A N/A Old Second Bank 351,663 15.65 190,999 8.50 179,764 8.00 Tier 1 capital to average assets Consolidated 317,767 9.81 129,569 4.00 N/A N/A Old Second Bank 351,663 10.83 129,885 4.00 162,356 5.00 December 31, 2020 Common equity tier 1 capital to risk weighted assets Consolidated $ 277,199 11.94 % $ 162,512 7.00 % N/A N/A Old Second Bank 318,466 13.75 162,128 7.00 $ 150,548 6.50 % Total capital to risk weighted assets Consolidated 331,178 14.26 243,855 10.50 N/A N/A Old Second Bank 347,408 15.00 243,186 10.50 231,605 10.00 Tier 1 capital to risk weighted assets Consolidated 302,199 13.01 197,440 8.50 N/A N/A Old Second Bank 318,466 13.75 196,870 8.50 185,289 8.00 Tier 1 capital to average assets Consolidated 302,199 10.21 118,393 4.00 N/A N/A Old Second Bank 318,466 10.74 118,609 4.00 148,262 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, 2021
Fair Value Measurements
Schedule of balance of assets and liabilities which are measured at fair value on a recurring basis	September 30, 2021 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 4,070 $ - $ - $ 4,070 U.S. government agencies - 33,575 - 33,575 U.S. government agencies mortgage-backed - 17,818 - 17,818 States and political subdivisions - 233,392 5,560 238,952 Corporate bonds - 4,992 - 4,992 Collateralized mortgage obligations - 165,414 - 165,414 Asset-backed securities - 189,338 - 189,338 Collateralized loan obligations - 61,029 - 61,029 Loans held-for-sale - 3,009 - 3,009 Mortgage servicing rights - - 5,320 5,320 Interest rate swap agreements - 5,292 - 5,292 Mortgage banking derivatives - 875 - 875 Total $ 4,070 $ 714,734 $ 10,880 $ 729,684 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 7,798 $ - $ 7,798 Total $ - $ 7,798 $ - $ 7,798 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Securities available-for-sale U.S. Treasury $ 4,117 $ - $ - $ 4,117 U.S. government agencies - 6,657 - 6,657 U.S. government agencies mortgage-backed - 17,209 - 17,209 States and political subdivisions - 244,940 4,319 249,259 Collateralized mortgage obligations - 56,585 - 56,585 Asset-backed securities - 131,818 - 131,818 Collateralized loan obligations - 30,533 - 30,533 Loans held-for-sale - 12,611 - 12,611 Mortgage servicing rights - - 4,224 4,224 Interest rate swap agreements - 9,388 - 9,388 Mortgage banking derivatives - 840 - 840 Total $ 4,117 $ 510,581 $ 8,543 $ 523,241 Liabilities: Interest rate swap agreements, including risk participation agreements $ - $ 13,159 $ - $ 13,159 Total $ - $ 13,159 $ - $ 13,159
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis	Nine Months Ended September 30, 2021 Securities available-for-sale States and Mortgage Political Servicing Subdivisions Rights Beginning balance January 1, 2021 $ 4,319 $ 4,224 Total gains or losses Included in earnings (7) 840 Included in other comprehensive income 812 - Purchases, issuances, sales, and settlements Purchases 748 - Issuances - 1,298 Settlements (312) (1,042) Ending balance September 30, 2021 $ 5,560 $ 5,320 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
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, 2021: Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 5,320 Discounted Cash Flow Discount Rate 11.0 - 15.0% 11.0 % Prepayment Speed 0.0 - 49.6% 15.5 % The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2020: Weighted Measured at fair value Unobservable Average on a recurring basis: Fair Value Valuation Methodology Inputs Range of Input of Inputs Mortgage servicing rights $ 4,224 Discounted Cash Flow Discount Rate 11.0 - 15.0% 11.0 % Prepayment Speed 5.5 - 59.1% 19.5 %
Schedule of assets measured at fair value on a nonrecurring basis	September 30, 2021 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 7,187 $ 7,187 Other real estate owned, net 2 - - 1,912 1,912 Total $ - $ - $ 9,099 $ 9,099 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 $11.0 million and a valuation allowance of $3.8 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $1.2 million for the nine months ended September 30, 2021. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $1.9 million at September 30, 2021, which is made up of the outstanding balance of $3.1 million, net of a valuation allowance of $1.2 million. December 31, 2020 Level 1 Level 2 Level 3 Total Individually evaluated loans 1 $ - $ - $ 9,675 $ 9,675 Other real estate owned, net 2 - - 2,474 2,474 Total $ - $ - $ 12,149 $ 12,149 1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans; had a carrying amount of $12.3 million and a valuation allowance of $2.6 million resulting in an increase of specific allocations within the allowance for credit losses on loans of $1.4 for the year December 31, 2020. 2 OREO is measured at fair value, less costs to sell, and had a net carrying amount of $2.5 million at December 31, 2020, which is made up of the outstanding balance of $4.1 million, net of a valuation allowance of $1.6 million.

Fair Values of Financial Inst_2

Fair Values of Financial Instruments (Tables)	9 Months Ended
Fair Values of Financial Instruments (Tables)	Sep. 30, 2021
Fair Values of Financial Instruments
Schedule of carrying amount and estimated fair values of financial instruments	September 30, 2021 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 26,705 $ 26,705 $ 26,705 $ - $ - Interest earning deposits with financial institutions 492,548 492,548 492,548 - - Securities available-for-sale 715,188 715,188 4,070 705,558 5,560 FHLBC and FRBC stock 9,917 9,917 - 9,917 - Loans held-for-sale 3,009 3,009 - 3,009 - Net loans 1,840,993 1,849,933 - - 1,849,933 Mortgage servicing rights 5,320 5,320 - - 5,320 Interest rate swap agreements 5,292 5,292 - 5,292 - Interest rate lock commitments and forward contracts 875 875 - 875 - Interest receivable on securities and loans 8,956 8,956 - 8,956 - Financial liabilities: Noninterest bearing deposits $ 1,037,638 $ 1,037,638 $ 1,037,638 $ - $ - Interest bearing deposits 1,676,691 1,677,796 - 1,677,796 - Securities sold under repurchase agreements 42,962 42,962 - 42,962 - Junior subordinated debentures 25,773 18,557 - 18,557 - Subordinated debentures 59,190 60,390 60,390 Senior notes 44,454 44,724 44,724 - - Note payable and other borrowings 20,155 20,600 - 20,600 - Interest rate swap agreements 7,767 7,767 - 7,767 - Interest payable on deposits and borrowings 1,920 1,920 - 1,920 - December 31, 2020 Carrying Fair Amount Value Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 24,306 $ 24,306 $ 24,306 $ - $ - Interest earning deposits with financial institutions 305,597 305,597 305,597 - - Securities available-for-sale 496,178 496,178 4,117 487,742 4,319 FHLBC and FRBC stock 9,917 9,917 - 9,917 - Loans held-for-sale 12,611 12,611 - 12,611 - Net loans 2,000,996 2,009,773 - - 2,009,773 Mortgage servicing rights 4,224 4,224 - - 4,224 Interest rate swap agreements 9,388 9,388 - 9,388 - Interest rate lock commitments and forward contracts 840 840 - 840 - Interest receivable on securities and loans 9,698 9,698 - 9,698 - Financial liabilities: Noninterest bearing deposits $ 909,505 $ 909,505 $ 909,505 $ - $ - Interest bearing deposits 1,627,568 1,630,109 - 1,630,109 - Securities sold under repurchase agreements 66,980 66,980 - 66,980 - Junior subordinated debentures 25,773 14,658 - 14,658 - Senior notes 44,375 44,600 44,600 - - Note payable and other borrowings 23,393 24,043 - 24,043 - Interest rate swap agreements 13,071 13,071 - 13,071 - Interest payable on deposits and borrowings 418 418 - 418 -

Derivatives, Hedging Activiti_2

Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk (Tables)	9 Months Ended
	Sep. 30, 2021
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, 2021 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swap agreements 2 75,774 Other Assets 1,567 Other Liabilities 4,042 Total derivatives designated as hedging instruments 1,567 4,042 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 26 167,218 Other Assets 3,725 Other Liabilities 3,725 Interest rate lock commitments and forward contracts 132 46,753 Other Assets 875 Other Liabilities - Other contracts 3 17,297 Other Assets - Other Liabilities 31 Total derivatives not designated as hedging instruments 4,600 3,756 December 31, 2020 No. of Trans. Notional Amount $ Balance Sheet Location Fair Value $ Balance Sheet Location Fair Value $ Derivatives designated as hedging instruments Interest rate swap agreements 2 75,774 Other Assets 2,697 Other Liabilities 6,380 Total derivatives designated as hedging instruments 2,697 6,380 Derivatives not designated as hedging instruments Interest rate swaps with commercial loan customers 28 189,126 Other Assets 6,691 Other Liabilities 6,691 Interest rate lock commitments and forward contracts 205 84,472 Other Assets 840 Other Liabilities - Other contracts 4 26,523 Other Assets - Other Liabilities 88 Total derivatives not designated as hedging instruments 7,531 6,779
Schedule of financial instrument commitments	September 30, 2021 December 31, 2020 Fixed Variable Total Fixed Variable Total Letters of credit: Borrower: Financial standby $ 329 $ 8,446 $ 8,775 $ 329 $ 9,051 $ 9,380 Commercial standby - - - - - - Performance standby 532 6,836 7,368 356 4,517 4,873 861 15,282 16,143 685 13,568 14,253 Non-borrower: Performance standby - 67 67 - 67 67 Total letters of credit $ 861 $ 15,349 $ 16,210 $ 685 $ 13,635 $ 14,320 Unused loan commitments: $ 126,753 $ 330,934 $ 457,687 $ 88,883 $ 316,298 $ 405,181

Basis of Presentation and Cha_3

Basis of Presentation and Changes in Significant Accounting Policies - Subsequent Events (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions	Nov. 08, 2021	Oct. 19, 2021
Subsequent Events
Cash dividend declared (per share)		$ 0.05
Dividends paid	$ 1.4

Proposed Merger with West Sub_2

Proposed Merger with West Suburban Bancorp, Inc (Details)	9 Months Ended
Proposed Merger with West Suburban Bancorp, Inc (Details)	Sep. 30, 2021	Jul. 25, 2021USD ($)shares
Business Acquisition [Line Items]
Expected percentage of shares to be held by the stockholders	64.00%
West Suburban Bancorp, Inc
Business Acquisition [Line Items]
Shares issued or issuable \| shares		42.413
Cash consideration for each share \| $		$ 271.15
Exchange ratio	42.413
Expected percentage of shares to be held by the stockholders	36.00%

Securities - Investment Portfol

Securities - Investment Portfolio (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
FHLB and FRB Stock
FHLBC stock	$ 3.7	$ 3.7
FRB stock	$ 6.2	$ 6.2

Securities - Amortized Cost and

Securities - Amortized Cost and Fair Value (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021USD ($)item	Sep. 30, 2021USD ($)item	Sep. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Securities Available-for-Sale
Amortized Cost	$ 695,700	$ 695,700		$ 471,961
Gross Unrealized Gains	21,205	21,205		26,735
Gross Unrealized Losses	(1,717)	(1,717)		(2,518)
Debt Securities, Available-for-sale, Total	715,188	715,188		496,178
Accrued interest receivable	2,800	2,800		2,700
Other disclosures
Purchases		352,236	$ 14,681
Proceeds from sales of securities	26,873	35,075	$ 18,006
Total added credit enhancement in the form of overcollaterization and/or subordination of outstanding principal	$ 15,600	$ 15,600
Percentage of total added credit enhancement in the form of overcollaterization and/or subordination of outstanding principal		10.03
Number of originators \| item	1	1
Minimum percentage of securities investment		10.00%
Securities pledged to secure deposits and for other purposes	$ 353,200	$ 353,200		335,800
Reimbursement requests greater than 5 %
Other disclosures
Percentage of outstanding principal amount of loans guaranteed by US Department of Education		85
Percent of insured loan		5
Reimbursement requests greater than 9 %
Other disclosures
Percentage of outstanding principal amount of loans guaranteed by US Department of Education		75
Percent of insured loan		9
US Treasury Securities [Member]
Securities Available-for-Sale
Amortized Cost	4,017	$ 4,017		4,014
Gross Unrealized Gains	53	53		103
Debt Securities, Available-for-sale, Total	4,070	4,070		4,117
US Treasury and Government
Securities Available-for-Sale
Amortized Cost	33,915	33,915		6,811
Gross Unrealized Losses	(340)	(340)		(154)
Debt Securities, Available-for-sale, Total	33,575	33,575		6,657
U.S. government agencies mortgage-backed
Securities Available-for-Sale
Amortized Cost				16,098
Gross Unrealized Gains				1,112
Gross Unrealized Losses				(1)
Debt Securities, Available-for-sale, Total				17,209
US States and Political Subdivisions Debt Securities [Member]
Securities Available-for-Sale
Amortized Cost	222,833	222,833		229,352
Gross Unrealized Gains	16,758	16,758		21,269
Gross Unrealized Losses	(639)	(639)		(1,362)
Debt Securities, Available-for-sale, Total	238,952	238,952		249,259
Corporate Bond Securities [Member]
Securities Available-for-Sale
Amortized Cost	5,000	5,000
Gross Unrealized Losses	(8)	(8)
Debt Securities, Available-for-sale, Total	4,992	4,992
Collateralized Mortgage Obligations [Member]
Securities Available-for-Sale
Amortized Cost	163,756	163,756		53,999
Gross Unrealized Gains	1,966	1,966		2,866
Gross Unrealized Losses	(308)	(308)		(280)
Debt Securities, Available-for-sale, Total	165,414	165,414		56,585
Asset-backed Securities [Member]
Securities Available-for-Sale
Amortized Cost	187,825	187,825		130,959
Gross Unrealized Gains	1,646	1,646		1,370
Gross Unrealized Losses	(133)	(133)		(511)
Debt Securities, Available-for-sale, Total	189,338	189,338		131,818
FFEL
Securities Available-for-Sale
Debt Securities, Available-for-sale, Total	154,500	$ 154,500
Other disclosures
Percentage of outstanding principal amount of loans guaranteed by US Department of Education		97
Collateralized loan obligations
Securities Available-for-Sale
Amortized Cost	61,085	$ 61,085		30,728
Gross Unrealized Gains	18	18		15
Gross Unrealized Losses	(74)	(74)		(210)
Debt Securities, Available-for-sale, Total	61,029	61,029		$ 30,533
Mortgage Backed Securities, Issued by US Government Agencies [Member]
Securities Available-for-Sale
Amortized Cost	17,269	17,269
Gross Unrealized Gains	764	764
Gross Unrealized Losses	(215)	(215)
Debt Securities, Available-for-sale, Total	17,818	17,818
Towd Point Mortgage Trust
Securities Available-for-Sale
Amortized Cost	32,836	32,836
Debt Securities, Available-for-sale, Total	$ 34,339	$ 34,339

Securities - Contractual Maturi

Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Securities Available-for-Sale, Amortized Cost
Due in one year or less	$ 4,227
Due after one year through five years	36,288
Due after five years through ten years	28,159
Due after ten years	197,091
Debt securities excluding securities not due at a single maturity date	265,765
Total	$ 695,700	$ 471,961
Securities Available-for-Sale, Weighted Average Yield
Due in one year or less (as a percent)	1.87%
Due after one year through five years (as a percent)	0.79%
Due after five years through ten years (as a percent)	2.35%
Due after ten years (as a percent)	3.01%
Debt securities (as a percent)	2.62%
Total (as a percent)	1.88%
Securities Available-for-Sale, Fair Value
Due in one year or less	$ 4,281
Due after one year through five years	36,240
Due after five years through ten years	29,387
Due after ten years	211,681
Debt securities	281,589
Debt Securities, Available-for-sale, Total	715,188	496,178
Collateralized Mortgage Obligations [Member]
Securities Available-for-Sale, Amortized Cost
Total	163,756	53,999
Securities Available-for-Sale, Fair Value
Debt Securities, Available-for-sale, Total	165,414	56,585
Asset-backed Securities [Member]
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	187,825
Total	$ 187,825	130,959
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	1.14%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date	$ 189,338
Debt Securities, Available-for-sale, Total	189,338	131,818
Collateralized loan obligations
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	61,085
Total	$ 61,085	30,728
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	1.40%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date	$ 61,029
Debt Securities, Available-for-sale, Total	61,029	$ 30,533
Mortgage-backed and collateralized mortgage obligations
Securities Available-for-Sale, Amortized Cost
Securities not due at a single maturity date	$ 181,025
Securities Available-for-Sale, Weighted Average Yield
Securities not due at a single maturity date, Weighted Average Yield (as a percent)	1.73%
Securities Available-for-Sale, Fair Value
Securities not due at a single maturity date	$ 183,232

Securities - Unrealized Loss Po

Securities - Unrealized Loss Positions (Details)	3 Months Ended
Securities - Unrealized Loss Positions (Details)	Sep. 30, 2021USD ($)security	Dec. 31, 2020USD ($)security
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position \| security	29	7
Greater than 12 months in an unrealized loss position \| security	9	13
Total	38	20
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 825,000	$ 313,000
Greater than 12 months in an unrealized loss position	892,000	2,205,000
Total	1,717,000	2,518,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	159,561,000	16,002,000
Greater than 12 months in an unrealized loss position	31,020,000	81,285,000
Total	190,581,000	$ 97,287,000
Credit losses were determined	0
Provision for credit losses on securities	$ 0
US Government Corporations and Agencies Securities [Member]
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position \| security	2
Greater than 12 months in an unrealized loss position \| security	4	4
Total	6	4
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 229,000
Greater than 12 months in an unrealized loss position	111,000	$ 154,000
Total	340,000	154,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	28,066,000
Greater than 12 months in an unrealized loss position	5,509,000	6,657,000
Total	$ 33,575,000	$ 6,657,000
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	6	1
Total	6	1
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 215,000	$ 1,000
Total	215,000	1,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	6,084,000	141,000
Total	$ 6,084,000	$ 141,000
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	2
Greater than 12 months in an unrealized loss position \| security	1	1
Total	3	1
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 23,000
Greater than 12 months in an unrealized loss position	616,000	$ 1,362,000
Total	639,000	1,362,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	1,490,000
Greater than 12 months in an unrealized loss position	4,085,000	3,433,000
Total	$ 5,575,000	$ 3,433,000
Corporate Bond Securities [Member]
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position \| security	1
Total \| security	1
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 8,000
Total	8,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	4,992,000
Total	$ 4,992,000
Collateralized Mortgage Obligations [Member]
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position \| security	7	4
Greater than 12 months in an unrealized loss position \| security	1	1
Total	8	5
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 244,000	$ 279,000
Greater than 12 months in an unrealized loss position	64,000	1,000
Total	308,000	280,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	63,495,000	8,142,000
Greater than 12 months in an unrealized loss position	7,531,000	146,000
Total	$ 71,026,000	$ 8,288,000
Asset-backed Securities [Member]
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position \| security	5	1
Greater than 12 months in an unrealized loss position \| security	1	3
Total	6	4
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 79,000	$ 2,000
Greater than 12 months in an unrealized loss position	54,000	509,000
Total	133,000	511,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	35,048,000	251,000
Greater than 12 months in an unrealized loss position	3,270,000	49,572,000
Total	$ 38,318,000	$ 49,823,000
Collateralized loan obligations
Securities Available-for-Sale, Number of Securities
Less than 12 months in an unrealized loss position \| security	6	1
Greater than 12 months in an unrealized loss position \| security	2	4
Total	8	5
Securities Available-for-Sale, Unrealized Losses
Less than 12 months in an unrealized loss position	$ 27,000	$ 31,000
Greater than 12 months in an unrealized loss position	47,000	179,000
Total	74,000	210,000
Securities Available-for-Sale, Fair Value
Less than 12 months in an unrealized loss position	20,386,000	7,468,000
Greater than 12 months in an unrealized loss position	10,625,000	21,477,000
Total	$ 31,011,000	$ 28,945,000

Securities - Realized Gain (Los

Securities - Realized Gain (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Securities
Proceeds from sales of securities	$ 26,873		$ 35,075	$ 18,006
Gross realized gains on securities	262		267	17
Gross realized losses on securities	(18)	$ (1)	(21)	(42)
Net realized gains (losses)	244	$ (1)	246	(25)
Income tax (expense) benefit on net realized gains (losses)	$ (69)		$ (70)	$ 7
Effective tax rate applied (as a percent)	28.30%	0.00%	28.50%	28.00%
Available-for-sale Securities Pledged as Collateral	$ 353,200		$ 353,200		$ 335,800

Loans and Allowance for Credi_3

Loans and Allowance for Credit Losses on Loans - Major Classifications (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Loans
Total Loans	$ 1,867,942	$ 2,034,851
Allowance for credit losses	(26,949)	(33,855)
Net loans	1,840,993	2,000,996
Loans and leases receivable, accrued interest receivable	6,100	7,000
Paycheck Protection Program (PPP)
Loans
Total Loans	34,700	74,100
Collateral
Loans
Allowance for credit losses	(4,233)	(2,637)
Commercial
Loans
Total Loans	321,548	407,159
Commercial \| Collateral
Loans
Allowance for credit losses		(56)
Leases
Loans
Total Loans	162,444	141,601
Leases \| Collateral
Loans
Allowance for credit losses	(661)	(880)
Commercial real estate - Investor
Loans
Total Loans	535,506	582,042
Commercial real estate - Investor \| Collateral
Loans
Allowance for credit losses	(2,290)	(84)
Commercial real estate - Owner occupied
Loans
Total Loans	330,648	333,070
Commercial real estate - Owner occupied \| Collateral
Loans
Allowance for credit losses	(7)	(195)
Construction
Loans
Total Loans	108,690	98,486
Construction \| Collateral
Loans
Allowance for credit losses	(988)	(952)
Residential real estate - Investor
Loans
Total Loans	45,497	56,137
Residential real estate - Owner occupied
Loans
Total Loans	108,343	116,388
Residential real estate - Owner occupied \| Collateral
Loans
Allowance for credit losses		(10)
Multifamily
Loans
Total loans, excluding deferred loan costs and PCI loans	160,798	189,040
Total Loans	160,798	189,040
Multifamily \| Collateral
Loans
Allowance for credit losses	(90)	(378)
HELOC
Loans
Total Loans	69,651	80,908
HELOC \| Collateral
Loans
Allowance for credit losses	(195)	(78)
HELOC - Purchased
Loans
Total Loans	12,370	19,487
Other 2
Loans
Total Loans	$ 12,447	$ 10,533

Loans and Allowance for Credi_4

Loans and Allowance for Credit Losses on Loans - Major Classifications - Loan Concentrations (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Real Estate Portfolio Segment [Member] \| Loan receivables \| Customer Concentration Risk [Member]
Loans
Loans receivable as a percentage of total portfolio	73.40%	72.50%

Loans and Allowance for Credi_5

Loans and Allowance for Credit Losses on Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Allowance for loan losses:
Beginning Balance	$ 28,639	$ 31,273	$ 33,855	$ 19,789
Provision for (Release of) Credit Losses	(1,453)	1,280	(7,186)	8,174
Charge-offs	369	451	712	2,258
Recoveries	132	816	992	1,334
Ending Balance	26,949	32,918	26,949	32,918
Accounting Standards Update 2016-13
Allowance for loan losses:
Beginning Balance				5,879
Commercial
Allowance for loan losses:
Beginning Balance	2,601	2,292	2,812	3,015
Provision for (Release of) Credit Losses	82	98	43	(250)
Charge-offs	23	5	232	124
Recoveries	25	12	62	48
Ending Balance	2,685	2,397	2,685	2,397
Commercial \| Accounting Standards Update 2016-13
Allowance for loan losses:
Beginning Balance				(292)
Leases
Allowance for loan losses:
Beginning Balance	3,388	2,012	3,888	1,262
Provision for (Release of) Credit Losses	(41)	1,965	(513)	2,214
Charge-offs	4	119	32	119
Ending Balance	3,343	3,858	3,343	3,858
Leases \| Accounting Standards Update 2016-13
Allowance for loan losses:
Beginning Balance				501
Commercial real estate - Investor
Allowance for loan losses:
Beginning Balance	10,437	7,725	9,205	6,218
Provision for (Release of) Credit Losses	(890)	783	302	3,009
Charge-offs	101		101	15
Recoveries	18	102	58	139
Ending Balance	9,464	8,610	9,464	8,610
Commercial real estate - Investor \| Accounting Standards Update 2016-13
Allowance for loan losses:
Beginning Balance				(741)
Commercial real estate - Owner occupied
Allowance for loan losses:
Beginning Balance	1,086	2,521	2,251	3,678
Provision for (Release of) Credit Losses	99	(535)	(1,250)	556
Charge-offs	5	145	39	1,546
Recoveries	7	565	225	566
Ending Balance	1,187	2,406	1,187	2,406
Commercial real estate - Owner occupied \| Accounting Standards Update 2016-13
Allowance for loan losses:
Beginning Balance				(848)
Real estate - construction
Allowance for loan losses:
Beginning Balance	3,048	4,431	4,054	513
Provision for (Release of) Credit Losses	(175)	406	(1,181)	2,990
Charge-offs		60		60
Recoveries		1		1
Ending Balance	2,873	4,778	2,873	4,778
Real estate - construction \| Accounting Standards Update 2016-13
Allowance for loan losses:
Beginning Balance				1,334
Residential real estate - Investor
Allowance for loan losses:
Beginning Balance	975	2,217	1,740	601
Provision for (Release of) Credit Losses	(287)	(290)	(1,328)	564
Charge-offs		3		8
Recoveries	7	18	283	45
Ending Balance	695	1,942	695	1,942
Residential real estate - Investor \| Accounting Standards Update 2016-13
Allowance for loan losses:
Beginning Balance				740
Residential real estate - Owner occupied
Allowance for loan losses:
Beginning Balance	1,866	3,204	2,714	1,257
Provision for (Release of) Credit Losses	(116)	(508)	(1,074)	30
Charge-offs				43
Recoveries	18	25	128	157
Ending Balance	1,768	2,721	1,768	2,721
Residential real estate - Owner occupied \| Accounting Standards Update 2016-13
Allowance for loan losses:
Beginning Balance				1,320
Multifamily
Allowance for loan losses:
Beginning Balance	3,266	3,518	3,625	1,444
Provision for (Release of) Credit Losses	(121)	(301)	(480)	41
Charge-offs	183		183
Ending Balance	2,962	3,217	2,962	3,217
Multifamily \| Accounting Standards Update 2016-13
Allowance for loan losses:
Beginning Balance				1,732
HELOC
Allowance for loan losses:
Beginning Balance	1,604	2,255	1,749	1,161
Provision for (Release of) Credit Losses	13	(359)	(216)	(902)
Charge-offs			17	85
Recoveries	28	52	129	248
Ending Balance	1,645	1,948	1,645	1,948
HELOC \| Accounting Standards Update 2016-13
Allowance for loan losses:
Beginning Balance				1,526
HELOC - Purchased
Allowance for loan losses:
Beginning Balance	229	398	199
Provision for (Release of) Credit Losses	(36)	(43)	(6)	355
Charge-offs		66		66
Ending Balance	193	289	193	289
Other
Allowance for loan losses:
Beginning Balance	139	700	1,618	640
Provision for (Release of) Credit Losses	19	64	(1,483)	(433)
Charge-offs	53	53	108	192
Recoveries	29	41	107	130
Ending Balance	134	752	134	752
Other \| Accounting Standards Update 2016-13
Allowance for loan losses:
Beginning Balance				607
Unfunded Loan Commitment
Allowance for loan losses:
Beginning Balance			3,000
Ending Balance	$ 2,200	$ 4,000	$ 2,200	$ 4,000

Loans and Allowance for Credi_6

Loans and Allowance for Credit Losses on Loans - Collateral dependent loans (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	$ 29,733	$ 29,253
ACL Allocation	26,949	33,855
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	23,249	25,150
Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral		1,070
Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	3,413	2,377
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	3,071	656
Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	4,233	2,637
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	195	1,125
Commercial \| Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	195
Commercial \| Accounts Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral		1,070
Commercial \| Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral		55
Commercial \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation		56
Leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	3,959	2,974
Leases \| Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	3,413	2,377
Leases \| Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	546	597
Leases \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	661	880
Commercial real estate - Investor
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	6,070	4,179
Commercial real estate - Investor \| Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	6,070	4,179
Commercial real estate - Investor \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	2,290	84
Commercial real estate - Owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	6,896	9,726
Commercial real estate - Owner occupied \| Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	4,373	9,726
Commercial real estate - Owner occupied \| Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	2,523
Commercial real estate - Owner occupied \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	7	195
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	4,898	1,891
Construction \| Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	4,898	1,891
Construction \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	988	952
Residential real estate - Investor
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	998	928
Residential real estate - Investor \| Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	998	928
Residential real estate - Owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	3,945	3,535
Residential real estate - Owner occupied \| Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	3,945	3,535
Residential real estate - Owner occupied \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation		10
Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	1,889	3,838
Multifamily \| Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	1,889	3,838
Multifamily \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	90	378
HELOC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	700	1,053
HELOC \| Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	700	1,053
HELOC \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	195	78
HELOC - Purchased
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	181
HELOC - Purchased \| Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	181
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	2	4
Other \| Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans pledged as collateral	2	4
Other \| Collateral
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	$ 2	$ 4

Loans and Allowance for Credi_7

Loans and Allowance for Credit Losses on Loans - Aging Analysis (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)item	Dec. 31, 2020USD ($)
Aged analysis of past due loans
Total Past Due	$ 14,316
Current	1,853,626
Current including PCI Loans		$ 2,011,903
Non accrual including PCI Loans	27,520	22,280
Total Past Due Including PCI loans		22,948
Total Loans	1,867,942	2,034,851
Total loans, including deferred loan loan costs and PCI	1,840,993	2,000,996
Recorded Investment 90 days or Greater Past Due and Accruing	$ 1,233
Total Loans		434
Number of loan modifications, CARES Act \| item	506
Number of loan modifications with deferral request, CARES Act \| item	12
Number of loan modifications resumed payments, CARES Act \| item	494
Pre-modification, CARES Act	$ 237,800
Post-modification, CARES Act	8,800
Loan modification CARES Act, resumed payments	229,000
Special Mention [Member]
Aged analysis of past due loans
Total Loans	22,647	26,526
30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	2,811
Total Past Due Including PCI loans		10,916
60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	1,265
Total Past Due Including PCI loans		1,840
90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	10,240
Total Past Due Including PCI loans		10,192
Commercial
Aged analysis of past due loans
Total Past Due	998	52
Current	320,550	407,107
Nonaccrual	195	1,125
Total Loans	321,548	407,159
Recorded Investment 90 days or Greater Past Due and Accruing	25
Commercial \| Special Mention [Member]
Aged analysis of past due loans
Total Loans	2,270	5,702
Commercial \| 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	778
Commercial \| 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	220	52
Leases
Aged analysis of past due loans
Total Past Due	1,637	988
Current	160,807	140,613
Nonaccrual	3,959	2,638
Total Loans	162,444	141,601
Recorded Investment 90 days or Greater Past Due and Accruing		163
Leases \| Special Mention [Member]
Aged analysis of past due loans
Total Loans		338
Leases \| 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due		613
Leases \| 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due		59
Leases \| 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	1,637	316
Commercial real estate - Investor
Aged analysis of past due loans
Total Past Due	269	2,547
Current	535,237	579,495
Nonaccrual	6,070	1,632
Total Loans	535,506	582,042
Recorded Investment 90 days or Greater Past Due and Accruing	30
Commercial real estate - Investor \| Special Mention [Member]
Aged analysis of past due loans
Total Loans	10,775	12,301
Commercial real estate - Investor \| 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due		1,439
Commercial real estate - Investor \| 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	239
Commercial real estate - Investor \| 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	30	1,108
Commercial real estate - Owner occupied
Aged analysis of past due loans
Total Past Due	3,742	10,115
Current	326,906	322,955
Nonaccrual	6,896	9,262
Total Loans	330,648	333,070
Commercial real estate - Owner occupied \| Special Mention [Member]
Aged analysis of past due loans
Total Loans	215	604
Commercial real estate - Owner occupied \| 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	812	1,848
Commercial real estate - Owner occupied \| 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	672	958
Commercial real estate - Owner occupied \| 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	2,258	7,309
Real estate - construction
Aged analysis of past due loans
Total Past Due	2,665	1,237
Current	106,025	97,249
Nonaccrual	2,958
Total Loans	108,690	98,486
Real estate - construction \| 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due		1,237
Real estate - construction \| 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	2,665
Residential real estate - Investor
Aged analysis of past due loans
Total Past Due	882	1,526
Current	44,615	54,611
Nonaccrual	998	928
Total Loans	45,497	56,137
Recorded Investment 90 days or Greater Past Due and Accruing		157
Residential real estate - Investor \| 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due		1,022
Residential real estate - Investor \| 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due		20
Residential real estate - Investor \| 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	882	484
Residential real estate - Owner occupied
Aged analysis of past due loans
Total Past Due	2,175	1,862
Current	106,168	114,526
Nonaccrual	3,945	3,206
Total Loans	108,343	116,388
Recorded Investment 90 days or Greater Past Due and Accruing	741	114
Residential real estate - Owner occupied \| Special Mention [Member]
Aged analysis of past due loans
Total Loans	680
Residential real estate - Owner occupied \| 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due		859
Residential real estate - Owner occupied \| 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	322	286
Residential real estate - Owner occupied \| 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	1,853	717
Multifamily
Aged analysis of past due loans
Total Past Due	1,345	3,749
Current	159,453	185,291
Nonaccrual	1,618	2,437
Total Loans	160,798	189,040
Recorded Investment 90 days or Greater Past Due and Accruing	437
Multifamily \| Special Mention [Member]
Aged analysis of past due loans
Total Loans	7,511	7,449
Multifamily \| 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	876	3,282
Multifamily \| 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due	32	467
Multifamily \| 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	437
HELOC
Aged analysis of past due loans
Total Past Due	421	805
Current	69,230	80,103
Nonaccrual	700	1,052
Total Loans	69,651	80,908
HELOC \| Special Mention [Member]
Aged analysis of past due loans
Total Loans	108	94
HELOC \| 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	344	549
HELOC \| 60 to 89 Days Past Due
Aged analysis of past due loans
Total Past Due		50
HELOC \| 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	77	206
HELOC - Purchased
Aged analysis of past due loans
Total Past Due	181	47
Current	12,189	19,440
Nonaccrual	181
Total Loans	12,370	19,487
HELOC - Purchased \| 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due		47
HELOC - Purchased \| 90 Days or Greater Past Due
Aged analysis of past due loans
Total Past Due	181
Other
Aged analysis of past due loans
Total Past Due	1	20
Current	12,446	10,513
Total Loans	12,447	10,533
Other \| 30 to 59 Days Past Due
Aged analysis of past due loans
Total Past Due	$ 1	$ 20

Loans and Allowance for Credi_8

Loans and Allowance for Credit Losses on Loans - Loans In Active Deferral (Details) $ in Thousands	Sep. 30, 2021USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans modified under CARES Act, in deferral	$ 8,829
Loans modified under CARES Act, in nonaccrual, within deferral above	4,601
2nd Deferral
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans modified under CARES Act, in deferral	6,752
Loans modified under CARES Act, in nonaccrual, within deferral above	2,524
3rd Deferral
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans modified under CARES Act, in deferral	2,077
Loans modified under CARES Act, in nonaccrual, within deferral above	$ 2,077

Loans and Allowance for Credi_9

Loans and Allowance for Credit Losses on Loans - Nonaccruals (Details) - USD ($)	3 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non accrual including PCI Loans	$ 27,520,000	$ 22,280,000
Interest on nonaccrual loans	243,000
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	195,000	1,125,000
Leases
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	3,959,000	2,638,000
Commercial real estate - Investor
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	6,070,000	1,632,000
Commercial real estate - Owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	6,896,000	9,262,000
Real estate - construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	2,958,000
Residential real estate - Investor
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	998,000	928,000
Residential real estate - Owner occupied
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	3,945,000	3,206,000
Multifamily
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	1,618,000	2,437,000
HELOC
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	700,000	$ 1,052,000
HELOC - Purchased
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	$ 181,000

Loans and Allowance for Cred_10

Loans and Allowance for Credit Losses on Loans - Credit Quality (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Loans by risk rating
2021	$ 394,867,000
2020	389,107,000	$ 540,725,000
2019	317,004,000	426,334,000
2018	192,740,000	282,190,000
2017	139,778,000	192,546,000
2016		141,678,000
Prior	162,677,000	126,410,000
Revolving Loans	271,283,000	324,968,000
Revolving Loans Converted To Term Loans	486,000
Total Loans	1,867,942,000	2,034,851,000
Total Loans		434,000
Minimum [Member]
Loans by risk rating
Loan commitment for inclusion in credit quality analysis	50,000
Pass [Member]
Loans by risk rating
2021	391,749,000
2020	384,983,000	527,373,000
2019	290,395,000	401,352,000
2018	187,140,000	270,306,000
2017	131,225,000	189,092,000
2016		139,283,000
Prior	155,778,000	115,951,000
Revolving Loans	269,043,000	322,913,000
Revolving Loans Converted To Term Loans	59,000
Total Loans	1,810,372,000	1,966,270,000
Special Mention [Member]
Loans by risk rating
2021	540,000
2020	357,000	8,341,000
2019	18,773,000	17,081,000
2018	610,000	288,000
2017	215,000	548,000
2016		98,000
Prior	168,000
Revolving Loans	1,557,000	170,000
Revolving Loans Converted To Term Loans	427,000
Total Loans	22,647,000	26,526,000
Substandard [Member]
Loans by risk rating
2021	2,578,000
2020	3,767,000	5,011,000
2019	7,836,000	7,901,000
2018	4,990,000	11,596,000
2017	8,338,000	2,906,000
2016		2,297,000
Prior	6,731,000	10,459,000
Revolving Loans	683,000	1,885,000
Total Loans	34,923,000	42,055,000
Commercial
Loans by risk rating
2021	64,818,000
2020	24,589,000	107,199,000
2019	26,597,000	42,771,000
2018	11,479,000	16,111,000
2017	4,172,000	6,265,000
2016		1,828,000
Prior	2,184,000	1,691,000
Revolving Loans	187,650,000	231,294,000
Revolving Loans Converted To Term Loans	59,000
Total Loans	321,548,000	407,159,000
Commercial \| Pass [Member]
Loans by risk rating
2021	64,298,000
2020	24,032,000	101,796,000
2019	26,420,000	42,294,000
2018	11,445,000	14,519,000
2017	4,172,000	6,265,000
2016		1,825,000
Prior	2,184,000	1,691,000
Revolving Loans	186,201,000	230,388,000
Revolving Loans Converted To Term Loans	59,000
Total Loans	318,811,000	398,778,000
Commercial \| Special Mention [Member]
Loans by risk rating
2021	287,000
2020	357,000	5,130,000
2019	177,000	425,000
2018		68,000
2016		3,000
Revolving Loans	1,449,000	76,000
Total Loans	2,270,000	5,702,000
Commercial \| Substandard [Member]
Loans by risk rating
2021	233,000
2020	200,000	273,000
2019		52,000
2018	34,000	1,524,000
Revolving Loans		830,000
Total Loans	467,000	2,679,000
Real estate - residential
Loans by risk rating
Mortgage loans in process of foreclosure	572,000	546,000
Leases
Loans by risk rating
2021	59,361,000
2020	47,677,000	56,780,000
2019	39,250,000	53,765,000
2018	10,975,000	17,628,000
2017	1,787,000	6,604,000
2016		5,692,000
Prior	3,394,000	1,132,000
Total Loans	162,444,000	141,601,000
Leases \| Pass [Member]
Loans by risk rating
2021	59,361,000
2020	47,677,000	56,605,000
2019	36,332,000	52,168,000
2018	10,311,000	16,830,000
2017	1,752,000	6,545,000
2016		5,242,000
Prior	2,588,000	651,000
Total Loans	158,021,000	138,041,000
Leases \| Special Mention [Member]
Loans by risk rating
2020		175,000
2019		163,000
Total Loans		338,000
Leases \| Substandard [Member]
Loans by risk rating
2019	2,918,000	1,434,000
2018	664,000	798,000
2017	35,000	59,000
2016		450,000
Prior	806,000	481,000
Total Loans	4,423,000	3,222,000
Commercial real estate - Investor
Loans by risk rating
2021	111,883,000
2020	146,497,000	178,884,000
2019	118,179,000	169,395,000
2018	62,544,000	92,447,000
2017	50,592,000	66,762,000
2016		56,398,000
Prior	43,114,000	16,837,000
Revolving Loans	2,697,000	1,319,000
Total Loans	535,506,000	582,042,000
Commercial real estate - Investor \| Pass [Member]
Loans by risk rating
2021	109,776,000
2020	146,497,000	173,781,000
2019	107,124,000	158,677,000
2018	62,359,000	92,156,000
2017	44,644,000	66,762,000
2016		55,963,000
Prior	42,916,000	15,966,000
Revolving Loans	2,697,000	1,319,000
Total Loans	516,013,000	564,624,000
Commercial real estate - Investor \| Special Mention [Member]
Loans by risk rating
2020		2,394,000
2019	10,607,000	9,592,000
2018		220,000
2016		95,000
Prior	168,000
Total Loans	10,775,000	12,301,000
Commercial real estate - Investor \| Substandard [Member]
Loans by risk rating
2021	2,107,000
2020		2,709,000
2019	448,000	1,126,000
2018	185,000	71,000
2017	5,948,000
2016		340,000
Prior	30,000	871,000
Total Loans	8,718,000	5,117,000
Commercial real estate - Owner occupied
Loans by risk rating
2021	85,407,000
2020	70,679,000	74,773,000
2019	43,904,000	54,963,000
2018	41,444,000	75,499,000
2017	40,021,000	46,979,000
2016		50,501,000
Prior	47,014,000	29,031,000
Revolving Loans	2,179,000	1,324,000
Total Loans	330,648,000	333,070,000
Commercial real estate - Owner occupied \| Pass [Member]
Loans by risk rating
2021	85,407,000
2020	67,186,000	72,605,000
2019	42,218,000	52,809,000
2018	41,444,000	73,719,000
2017	38,798,000	45,315,000
2016		50,000,000
Prior	45,990,000	25,507,000
Revolving Loans	2,179,000	1,324,000
Total Loans	323,222,000	321,279,000
Commercial real estate - Owner occupied \| Special Mention [Member]
Loans by risk rating
2020		604,000
2017	215,000
Total Loans	215,000	604,000
Commercial real estate - Owner occupied \| Substandard [Member]
Loans by risk rating
2020	3,493,000	1,564,000
2019	1,686,000	2,154,000
2018		1,780,000
2017	1,008,000	1,664,000
2016		501,000
Prior	1,024,000	3,524,000
Total Loans	7,211,000	11,187,000
Construction
Loans by risk rating
2021	30,536,000
2020	44,396,000	50,208,000
2019	20,864,000	27,298,000
2018	3,611,000	9,260,000
2017	514,000	539,000
2016		218,000
Prior	1,258,000	1,261,000
Revolving Loans	7,511,000	9,702,000
Total Loans	108,690,000	98,486,000
Construction \| Pass [Member]
Loans by risk rating
2021	30,362,000
2020	44,396,000	50,170,000
2019	16,992,000	24,163,000
2018	1,671,000	7,203,000
2017	514,000	539,000
2016		218,000
Prior	1,258,000	1,261,000
Revolving Loans	7,511,000	9,702,000
Total Loans	102,704,000	93,256,000
Construction \| Special Mention [Member]
Loans by risk rating
2020		38,000
2019	1,088,000
Total Loans	1,088,000	38,000
Construction \| Substandard [Member]
Loans by risk rating
2021	174,000
2019	2,784,000	3,135,000
2018	1,940,000	2,057,000
Total Loans	4,898,000	5,192,000
Residential real estate - Investor
Loans by risk rating
2021	1,877,000
2020	6,148,000	9,720,000
2019	10,909,000	14,194,000
2018	6,539,000	9,132,000
2017	7,255,000	7,775,000
2016		2,522,000
Prior	10,839,000	11,650,000
Revolving Loans	1,930,000	1,144,000
Total Loans	45,497,000	56,137,000
Residential real estate - Investor \| Pass [Member]
Loans by risk rating
2021	1,877,000
2020	6,148,000	9,371,000
2019	10,909,000	14,194,000
2018	6,383,000	8,522,000
2017	6,867,000	7,775,000
2016		2,431,000
Prior	10,229,000	11,184,000
Revolving Loans	1,930,000	1,144,000
Total Loans	44,343,000	54,621,000
Residential real estate - Investor \| Substandard [Member]
Loans by risk rating
2020		349,000
2018	156,000	610,000
2017	388,000
2016		91,000
Prior	610,000	466,000
Total Loans	1,154,000	1,516,000
Residential real estate - Owner occupied
Loans by risk rating
2021	16,639,000
2020	16,671,000	18,355,000
2019	19,433,000	23,450,000
2018	7,291,000	11,220,000
2017	11,223,000	15,628,000
2016		10,920,000
Prior	34,637,000	34,161,000
Revolving Loans	2,022,000	2,654,000
Revolving Loans Converted To Term Loans	427,000
Total Loans	108,343,000	116,388,000
Residential real estate - Owner occupied \| Pass [Member]
Loans by risk rating
2021	16,322,000
2020	16,625,000	18,308,000
2019	19,433,000	23,450,000
2018	6,892,000	10,808,000
2017	11,045,000	15,409,000
2016		10,394,000
Prior	30,816,000	31,325,000
Revolving Loans	2,022,000	2,654,000
Total Loans	103,155,000	112,348,000
Residential real estate - Owner occupied \| Special Mention [Member]
Loans by risk rating
2021	253,000
Revolving Loans Converted To Term Loans	427,000
Total Loans	680,000
Residential real estate - Owner occupied \| Substandard [Member]
Loans by risk rating
2021	64,000
2020	46,000	47,000
2018	399,000	412,000
2017	178,000	219,000
2016		526,000
Prior	3,821,000	2,836,000
Total Loans	4,508,000	4,040,000
Multifamily
Loans by risk rating
2021	20,071,000
2020	29,014,000	40,740,000
2019	35,275,000	37,750,000
2018	47,515,000	48,555,000
2017	22,492,000	39,608,000
2016		12,265,000
Prior	6,362,000	9,925,000
Revolving Loans	69,000	197,000
Total Loans	160,798,000	189,040,000
Multifamily \| Pass [Member]
Loans by risk rating
2021	20,071,000
2020	29,014,000	40,671,000
2019	28,374,000	30,849,000
2018	45,325,000	44,301,000
2017	21,745,000	38,133,000
2016		12,147,000
Prior	6,362,000	7,735,000
Revolving Loans	69,000	197,000
Total Loans	150,960,000	174,033,000
Multifamily \| Special Mention [Member]
Loans by risk rating
2019	6,901,000	6,901,000
2018	610,000
2017		548,000
Total Loans	7,511,000	7,449,000
Multifamily \| Substandard [Member]
Loans by risk rating
2020		69,000
2018	1,580,000	4,254,000
2017	747,000	927,000
2016		118,000
Prior		2,190,000
Total Loans	2,327,000	7,558,000
HELOC
Loans by risk rating
2021	503,000
2020	1,946,000	2,511,000
2019	2,018,000	2,174,000
2018	1,162,000	1,765,000
2017	1,610,000	2,157,000
2016		775,000
Prior	1,282,000	894,000
Revolving Loans	61,130,000	70,632,000
Total Loans	69,651,000	80,908,000
HELOC \| Pass [Member]
Loans by risk rating
2021	503,000
2020	1,918,000	2,511,000
2019	2,018,000	2,174,000
2018	1,132,000	1,679,000
2017	1,576,000	2,120,000
2016		504,000
Prior	1,023,000	803,000
Revolving Loans	60,339,000	69,483,000
Total Loans	68,509,000	79,274,000
HELOC \| Special Mention [Member]
Loans by risk rating
Revolving Loans	108,000	94,000
Total Loans	108,000	94,000
HELOC \| Substandard [Member]
Loans by risk rating
2020	28,000
2018	30,000	86,000
2017	34,000	37,000
2016		271,000
Prior	259,000	91,000
Revolving Loans	683,000	1,055,000
Total Loans	1,034,000	1,540,000
HELOC - Purchased
Loans by risk rating
Prior	12,370,000	19,487,000
Total Loans	12,370,000	19,487,000
HELOC - Purchased \| Pass [Member]
Loans by risk rating
Prior	12,189,000	19,487,000
Total Loans	12,189,000	19,487,000
HELOC - Purchased \| Substandard [Member]
Loans by risk rating
Prior	181,000
Total Loans	181,000
Other
Loans by risk rating
2021	3,772,000
2020	1,490,000	1,555,000
2019	575,000	574,000
2018	180,000	573,000
2017	112,000	229,000
2016		559,000
Prior	223,000	341,000
Revolving Loans	6,095,000	6,702,000
Total Loans	12,447,000	10,533,000
Other \| Pass [Member]
Loans by risk rating
2021	3,772,000
2020	1,490,000	1,555,000
2019	575,000	574,000
2018	178,000	569,000
2017	112,000	229,000
2016		559,000
Prior	223,000	341,000
Revolving Loans	6,095,000	6,702,000
Total Loans	12,445,000	10,529,000
Other \| Substandard [Member]
Loans by risk rating
2018	2,000	4,000
Total Loans	$ 2,000	$ 4,000

Loans and Allowance for Cred_11

Loans and Allowance for Credit Losses on Loans - TDR (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)contract	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)contract
Troubled debt restructurings - modified during the period
# of contracts \| contract		1		3
Pre-modification recorded investment	$ 0	$ 154,000	$ 0	$ 410,000
Post-modification recorded investment		$ 153,000		404,000
TDR's defaulted
Pre-modification outstanding recorded investment during the period			$ 0	$ 0
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

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, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Activity in the other real estate owned (OREO) portfolio, net of valuation reserve
Balance at beginning of period	$ 1,877	$ 5,082	$ 2,474	$ 5,004
Property additions, net of acquisition adjustments	70	314	70	898
Less: Proceeds from property disposals, net of participation purchase and of gains/losses	37	2,664	567	2,952
Less: Period valuation (write-up)/write-down	(2)	46	65	264
Balance at end of period	1,912	2,686	1,912	2,686
Activity in the valuation allowance
Balance at beginning of period	1,296	6,464	1,643	6,712
Provision for unrealized losses			65	264
Provision for unrealized losses	(2)	46	65	264
Reductions taken on sales	(129)	(4,897)	(543)	(5,363)
Balance at end of period	1,165	1,613	1,165	1,613
Expenses related to foreclosed assets, net of lease revenue
Gain on sales, net	(5)	(165)	(40)	(188)
Provision for unrealized losses	(2)	46	65	264
Operating expenses	32	253	117	460
Less: Lease revenue		9	4	31
Net OREO expense	$ 25	$ 125	$ 138	$ 505

Deposits - Classifications of D

Deposits - Classifications of Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Deposits
Noninterest bearing demand	$ 1,037,638	$ 909,505
Savings	457,900	399,057
NOW accounts	537,547	486,612
Money market accounts	370,691	316,465
Certificates of deposit of less than $100,000	173,595	200,107
Certificates of deposit of $100,000 up to $250,000	98,496	164,982
Certificates of deposit of $250,000 or more	38,462	60,345
Total deposits	$ 2,714,329	$ 2,537,073

Borrowings - Summary (Details)

Borrowings - Summary (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Borrowings
Total borrowings	$ 192,534	$ 160,521
Securities sold under repurchase agreements
Borrowings
Total borrowings	42,962	66,980
Junior Subordinated Debt
Borrowings
Total borrowings	25,773	25,773
Subordinated debentures
Borrowings
Total borrowings	59,190
Senior notes
Borrowings
Total borrowings	44,454	44,375
Notes payable and other borrowings.
Borrowings
Total borrowings	$ 20,155	$ 23,393

Borrowings - Additional informa

Borrowings - Additional information (Details)	Apr. 06, 2021USD ($)	Mar. 02, 2020USD ($)	Feb. 24, 2020USD ($)	Dec. 31, 2016	Sep. 30, 2021USD ($)item	Dec. 31, 2020USD ($)	Sep. 30, 2020	Apr. 20, 2018USD ($)
Borrowings
Threshold percentage of stockholders' equity					10.00%
Borrowings at FHLBC as percentage of total assets					35.00%
Borrowings at FHLBC as percentage of book value of certain mortgage loans							60.00%
Bank owned FHLBC stock					$ 3,700,000	$ 3,700,000
Proceeds from term note		$ 20,000,000	$ 20,000,000
Cash distribution rate of trust preferred securities (as a percent)			7.80%
Senior notes					44,454,000	44,375,000
Basis points added to reference rate (as a percent)			175.00%
Total borrowings					192,534,000	160,521,000
GCFC/ABC Bank
Borrowings
FHLBC advance amount					$ 6,200,000
Debt assumed								$ 23,400,000
GCFC/ABC Bank \| Maximum [Member]
Borrowings
Interest rate (as a percent)					2.83%
Three Months Secured Overnight Financing Rate
Borrowings
Basis points added to reference rate (as a percent)	273.00%
Securities sold under repurchase agreements
Borrowings
Carrying amount of securities secured					$ 43,000,000	67,000,000
Fair value of the pledged collateral					$ 113,800,000	94,400,000
Number of customers having secured balances exceeding specified percentage of stockholders equity \| item					0
Total borrowings					$ 42,962,000	66,980,000
Federal Home Loan Bank Advances [Member]
Borrowings
Borrowings at FHLBC as percentage of book value of certain mortgage loans					60.00%
FHLBC advance amount					$ 0	0
Bank owned FHLBC stock					3,700,000
Principal balance of loans collateralized					553,600,000
Combined collateral value					402,100,000
Amount available for additional borrowings					269,700,000
Subordinated debentures
Borrowings
Total borrowings					59,190,000
Notes payable and other borrowings.
Borrowings
Total borrowings					20,155,000	23,393,000
Junior Subordinated Debt
Borrowings
Total borrowings					25,773,000	25,773,000
Senior notes
Borrowings
Interest rate (as a percent)				5.75%
Senior notes					44,500,000	44,400,000
Debt Instrument, Term				10 years
Interest rate term				5 years
Debt issuance costs					$ 546,000	625,000
Amortization period for deferred financing costs					10 years
Total borrowings					$ 44,454,000	$ 44,375,000
Senior notes \| Debt Instrument, Variable Rate Base LIBOR [Member]
Borrowings
Basis points added to reference rate (as a percent)				385.00%
Term note
Borrowings
Proceeds from term note			$ 20,000,000		$ 14,000,000
Debt term			3 years
Subordinated Notes Due 2031
Borrowings
Interest rate (as a percent)	3.50%
Face amount	$ 60,000,000

Junior Subordinated Debentures

Junior Subordinated Debentures - Issuance (Details) - USD ($)	Mar. 02, 2020	Feb. 24, 2020	Apr. 30, 2007	Sep. 30, 2021	Sep. 30, 2020	Jun. 15, 2017	Dec. 31, 2017	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Junior subordinated debentures
Cash distribution rate of trust preferred securities (as a percent)		7.80%
Junior subordinated debentures				$ 25,773,000				$ 25,773,000		$ 25,773,000
Cash disbursed for redemption	$ 33,000,000
Redemption price per share	$ 10.13
Proceeds from term note	$ 20,000,000	$ 20,000,000
Unamortized debt issuance costs	$ 635,000								$ 643,000
Old Second Capital Trust II [Member]
Junior subordinated debentures
Proceeds from sale of cumulative trust preferred securities			$ 25,000,000
Maturity Period								30 years
Cash distribution fixed rate of trust preferred securities (as a percent)						6.77%
Basis points added to cash distribution floating rate base (as a percent)							1.50%
Cash distribution, floating rate base								three-month LIBOR
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%
Term note
Junior subordinated debentures
Proceeds from term note		$ 20,000,000						$ 14,000,000
Junior Subordinated Debt
Junior subordinated debentures
Junior Subordinated Debentures issuance cost				$ 1,000				1,000		$ 1,000
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
Junior Subordinated Debt \| Old Second Capital Trust II [Member]
Junior subordinated debentures
Junior subordinated debentures				$ 25,800,000				$ 25,800,000
7.8% subordinated debentures
Junior subordinated debentures
Interest rate (as a percent)	7.80%

Equity Compensation Plans (Deta

Equity Compensation Plans (Details) - USD ($) $ in Millions	1 Months Ended	9 Months Ended
Equity Compensation Plans (Details) - USD ($) $ in Millions	May 31, 2021	Sep. 30, 2021	Sep. 30, 2020	May 31, 2019
Equity Compensation Plans
Total compensation cost		$ 1.2	$ 1.6
Vesting Percentage , Fully Vest , Performance measure		50.00%
Minimum [Member]
Equity Compensation Plans
Vesting Percentage , Fully Vest , Performance measure		50.00%
Maximum [Member]
Equity Compensation Plans
Vesting Percentage , Pro rata , Performance measure		50.00%
2019 Plan
Equity Compensation Plans
Number of shares authorized	1,800,000			600,000
Increase in number of shares authorized	1,200,000
Number of shares available for issuance		1,418,520
Restricted Stock and Restricted Stock Units [Member]
Equity Compensation Plans
Vesting period		3 years

Equity Compensation Plans - Res

Equity Compensation Plans - Restricted Stock and RSUs (Details) - Restricted Stock and Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Changes in unvested awards
Nonvested at the beginning of the period (in shares)	532,609
Granted (in shares)	224,464	137,944
Vested (in shares)	(191,653)
Forfeited (in shares)	(42,111)
Nonvested at the end of the period (in shares)	523,309
Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 13.15
Granted (in dollars per share)	11.38
Vested (in dollars per share)	13.95
Forfeited (in dollars per share)	14.15
Nonvested at the end of the period (in dollars per share)	$ 12.01
Additional information
Total unrecognized compensation cost of restricted awards	$ 3.1
Expected weighted-average period for recognition of unrecognized compensation	1 year 10 months 17 days

Earnings Per Share - Reconcilia

Earnings Per Share - Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Basic earnings per share:
Weighted-average common shares outstanding	28,707,737	29,559,026	28,925,612	29,708,239
Net income	$ 8,412	$ 10,265	$ 29,111	$ 19,778
Basic earnings per share	$ 0.30	$ 0.35	$ 1.01	$ 0.67
Diluted earnings per share:
Weighted-average common shares outstanding	28,707,737	29,559,026	28,925,612	29,708,239
Diluted average common shares outstanding	29,230,280	30,102,301	29,458,806	30,261,721
Net earnings available to common stockholders	$ 8,412	$ 10,265	$ 29,111	$ 19,778
Diluted earnings per share	$ 0.29	$ 0.34	$ 0.99	$ 0.65
Restricted Stock and Restricted Stock Units [Member]
Diluted earnings per share:
Dilutive effect of share-based payment awards (in shares)	522,543	543,275	533,194	553,482

Regulatory & Capital Matters (D

Regulatory & Capital Matters (Details) $ in Millions	9 Months Ended
Regulatory & Capital Matters (Details) $ in Millions	Sep. 30, 2021USD ($)	Dec. 31, 2020	Jan. 01, 2020USD ($)
Regulatory & Capital Matters
Tier 1 capital leverage ratio (as a percent)	9.81	10.21
Risk-based capital ratio (as a percent)	17.80	14.26
Phase out of impact of allowance for credit loss			$ 3.8
Deferment of impact on retained earnings	$ 4.2
Subsidiaries [Member]
Regulatory & Capital Matters
Tier 1 capital leverage ratio (as a percent)	10.83	10.74
Risk-based capital ratio (as a percent)	16.69	15
Tier One leverage ratio, basis point increase (as a percent)	0.09%
Risk-based capital ratio, basis point increase (as a percent)	1.68%
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, 2021USD ($)	Dec. 31, 2020USD ($)
Common equity tier 1 capital to risk weighted assets
Actual	$ 292,767	$ 277,199
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 157,765	$ 162,512
Common equity tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	12.99%	11.94%
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	$ 401,027	$ 331,178
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 236,561	$ 243,855
Total capital to risk weighted assets, Ratio
Risk-based capital ratio (as a percent)	17.80	14.26
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	10.50	10.50
Tier 1 capital to risk weighted assets, Amount
Actual	$ 317,767	$ 302,199
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 191,562	$ 197,440
Tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	14.10	13.01
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	8.50	8.50
Tier 1 capital to average assets, Amount
Actual	$ 317,767	$ 302,199
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	$ 129,569	$ 118,393
Tier 1 capital to average assets, Ratio
Tier 1 capital leverage ratio (as a percent)	9.81	10.21
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	$ 351,663	$ 318,466
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	157,293	162,128
Minimum Required to Be Well Capitalized	$ 146,058	$ 150,548
Common equity tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	15.65%	13.75%
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	$ 374,923	$ 347,408
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	235,871	243,186
Minimum Required to Be Well Capitalized	$ 224,639	$ 231,605
Total capital to risk weighted assets, Ratio
Risk-based capital ratio (as a percent)	16.69	15
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	10.50	10.50
Minimum Required to Be Well Capitalized (as a percent)	10	10
Tier 1 capital to risk weighted assets, Amount
Actual	$ 351,663	$ 318,466
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	190,999	196,870
Minimum Required to Be Well Capitalized	$ 179,764	$ 185,289
Tier 1 capital to risk weighted assets, Ratio
Actual (as a percent)	15.65	13.75
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable (as a percent)	8.50	8.50
Minimum Required to Be Well Capitalized (as a percent)	8	8
Tier 1 capital to average assets, Amount
Actual	$ 351,663	$ 318,466
Minimum Required for Capital Adequacy Purposes with Capital Conservation Buffer if applicable	129,885	118,609
Minimum Required to Be Well Capitalized	$ 162,356	$ 148,262
Tier 1 capital to average assets, Ratio
Tier 1 capital leverage ratio (as a percent)	10.83	10.74
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, 2021	Sep. 30, 2021	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	9,519	9,519	1,494,826
Number of share repurchased	0	1,485,307

Fair Value Measurements - Recur

Fair Value Measurements - Recurring (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Assets:
Securities available-for-sale	$ 715,188		$ 496,178
Mortgage servicing rights	5,320		4,224
US Treasury Securities [Member]
Assets:
Securities available-for-sale	4,070		4,117
Mortgage Backed Securities, Issued by US Government Agencies [Member]
Assets:
Securities available-for-sale	17,818
US States and Political Subdivisions Debt Securities [Member]
Assets and liabilities measured at fair value on a recurring basis
Purchases	748	$ 12,900
Assets:
Securities available-for-sale	238,952		249,259
Corporate Bond Securities [Member]
Assets:
Securities available-for-sale	4,992
Collateralized Mortgage Obligations [Member]
Assets:
Securities available-for-sale	165,414		56,585
Asset-backed Securities [Member]
Assets:
Securities available-for-sale	189,338		131,818
Collateralized loan obligations
Assets:
Securities available-for-sale	61,029		30,533
Fair Value, Inputs, Level 1 [Member]
Assets:
Securities available-for-sale	4,070		4,117
Fair Value, Inputs, Level 2 [Member]
Assets:
Securities available-for-sale	705,558		487,742
Loans held-for-sale	3,009		12,611
Other assets	5,292		9,388
Liabilities:
Other liabilities	7,767		13,071
Fair Value, Inputs, Level 3 [Member]
Assets:
Securities available-for-sale	5,560		4,319
Mortgage servicing rights	5,320		4,224
Fair Value, Inputs, Level 3 [Member] \| US States and Political Subdivisions Debt Securities [Member]
Assets:
Securities available-for-sale	5,600	$ 4,800
Recurring
Assets:
Loans held-for-sale	3,009		12,611
Mortgage servicing rights	5,320		4,224
Total financial assets	729,684		523,241
Liabilities:
Total	7,798		13,159
Recurring \| Interest Rate Swap [Member]
Assets:
Other assets	5,292		9,388
Liabilities:
Other liabilities	7,798		13,159
Recurring \| Forward Contracts [Member]
Assets:
Other assets	875		840
Recurring \| US Treasury Securities [Member]
Assets:
Securities available-for-sale	4,070		4,117
Recurring \| US Government Corporations and Agencies Securities [Member]
Assets:
Securities available-for-sale	33,575		6,657
Recurring \| Mortgage Backed Securities, Issued by US Government Agencies [Member]
Assets:
Securities available-for-sale	17,818		17,209
Recurring \| US States and Political Subdivisions Debt Securities [Member]
Assets:
Securities available-for-sale	238,952		249,259
Recurring \| Corporate Bond Securities [Member]
Assets:
Securities available-for-sale	4,992
Recurring \| Collateralized Mortgage Obligations [Member]
Assets:
Securities available-for-sale	165,414		56,585
Recurring \| Asset-backed Securities [Member]
Assets:
Securities available-for-sale	189,338		131,818
Recurring \| Collateralized loan obligations
Assets:
Securities available-for-sale	61,029		30,533
Recurring \| Fair Value, Inputs, Level 1 [Member]
Assets:
Total financial assets	4,070		4,117
Recurring \| Fair Value, Inputs, Level 1 [Member] \| US Treasury Securities [Member]
Assets:
Securities available-for-sale	4,070		4,117
Recurring \| Fair Value, Inputs, Level 2 [Member]
Assets:
Loans held-for-sale	3,009		12,611
Total financial assets	714,734		510,581
Liabilities:
Total	7,798		13,159
Recurring \| Fair Value, Inputs, Level 2 [Member] \| Interest Rate Swap [Member]
Assets:
Other assets	5,292		9,388
Liabilities:
Other liabilities	7,798		13,159
Recurring \| Fair Value, Inputs, Level 2 [Member] \| Forward Contracts [Member]
Assets:
Other assets	875		840
Recurring \| Fair Value, Inputs, Level 2 [Member] \| US Government Corporations and Agencies Securities [Member]
Assets:
Securities available-for-sale	33,575		6,657
Recurring \| Fair Value, Inputs, Level 2 [Member] \| Mortgage Backed Securities, Issued by US Government Agencies [Member]
Assets:
Securities available-for-sale	17,818		17,209
Recurring \| Fair Value, Inputs, Level 2 [Member] \| US States and Political Subdivisions Debt Securities [Member]
Assets:
Securities available-for-sale	233,392		244,940
Recurring \| Fair Value, Inputs, Level 2 [Member] \| Corporate Bond Securities [Member]
Assets:
Securities available-for-sale	4,992
Recurring \| Fair Value, Inputs, Level 2 [Member] \| Collateralized Mortgage Obligations [Member]
Assets:
Securities available-for-sale	165,414		56,585
Recurring \| Fair Value, Inputs, Level 2 [Member] \| Asset-backed Securities [Member]
Assets:
Securities available-for-sale	189,338		131,818
Recurring \| Fair Value, Inputs, Level 2 [Member] \| Collateralized loan obligations
Assets:
Securities available-for-sale	61,029		30,533
Recurring \| Fair Value, Inputs, Level 3 [Member]
Assets:
Mortgage servicing rights	5,320		4,224
Total financial assets	10,880		8,543
Recurring \| Fair Value, Inputs, Level 3 [Member] \| US States and Political Subdivisions Debt Securities [Member]
Assets:
Securities available-for-sale	$ 5,560		$ 4,319

Fair Value Measurements - Chang

Fair Value Measurements - Changes in Level 3 (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
US States and Political Subdivisions Debt Securities [Member]
Changes in Level 3
Beginning balance	$ 4,319	$ 5,419
Total gains or losses
Included in earnings (or changes in net assets)		(16)
Included in other comprehensive income	812	(216)
Purchases, issuances, sales, and settlements
Purchases	748	12,900
Settlements	(312)	(13,297)
Ending balance	5,560	4,790
Changes in Level 3 (liabilities)
Included in earnings (or changes in net assets)	(7)
Mortgage Servicing Rights [Member]
Changes in Level 3
Beginning balance	4,224	5,935
Total gains or losses
Included in earnings (or changes in net assets)		(2,463)
Purchases, issuances, sales, and settlements
Issuances	1,298	1,813
Settlements	(1,042)	(275)
Ending balance	5,320	$ 5,010
Changes in Level 3 (liabilities)
Included in earnings (or changes in net assets)	$ 840

Fair Value Measurements - Quant

Fair Value Measurements - Quantitative and Qualitative Information (Details) $ in Thousands	Sep. 30, 2021USD ($)	Dec. 31, 2020USD ($)	Sep. 30, 2020USD ($)
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	$ 5,320	$ 4,224
Securities available-for-sale, at fair value	715,188	496,178
Fair Value, Inputs, Level 3 [Member]
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	5,320	4,224
Securities available-for-sale, at fair value	5,560	4,319
US States and Political Subdivisions Debt Securities [Member]
Quantitative information about Level 3 fair value measurements
Securities available-for-sale, at fair value	238,952	249,259
US States and Political Subdivisions Debt Securities [Member] \| Fair Value, Inputs, Level 3 [Member]
Quantitative information about Level 3 fair value measurements
Securities available-for-sale, at fair value	5,600		$ 4,800
Collateralized Mortgage Obligations [Member]
Quantitative information about Level 3 fair value measurements
Securities available-for-sale, at fair value	165,414	56,585
Recurring
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	5,320	4,224
Recurring \| Fair Value, Inputs, Level 3 [Member]
Quantitative information about Level 3 fair value measurements
Mortgage servicing rights, fair value	5,320	4,224
Recurring \| US States and Political Subdivisions Debt Securities [Member]
Quantitative information about Level 3 fair value measurements
Securities available-for-sale, at fair value	238,952	249,259
Recurring \| US States and Political Subdivisions Debt Securities [Member] \| Fair Value, Inputs, Level 3 [Member]
Quantitative information about Level 3 fair value measurements
Securities available-for-sale, at fair value	5,560	4,319
Recurring \| Collateralized Mortgage Obligations [Member]
Quantitative information about Level 3 fair value measurements
Securities available-for-sale, at fair value	$ 165,414	$ 56,585
Recurring \| Measurement Input, Discount Rate \| Mortgage Servicing Rights [Member] \| Fair Value, Inputs, Level 3 [Member] \| Minimum [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	11	11
Recurring \| Measurement Input, Discount Rate \| Mortgage Servicing Rights [Member] \| Fair Value, Inputs, Level 3 [Member] \| Maximum [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	15	15
Recurring \| Measurement Input, Discount Rate \| Mortgage Servicing Rights [Member] \| Fair Value, Inputs, Level 3 [Member] \| Weighted Average [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	11	11
Recurring \| Measurement Input, Constant Prepayment Rate \| Mortgage Servicing Rights [Member] \| Fair Value, Inputs, Level 3 [Member] \| Minimum [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	0	5.5
Recurring \| Measurement Input, Constant Prepayment Rate \| Mortgage Servicing Rights [Member] \| Fair Value, Inputs, Level 3 [Member] \| Maximum [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	49.6	59.1
Recurring \| Measurement Input, Constant Prepayment Rate \| Mortgage Servicing Rights [Member] \| Fair Value, Inputs, Level 3 [Member] \| Weighted Average [Member]
Quantitative information about Level 3 fair value measurements
Servicing Asset, Measurement Input	15.5	19.5

Fair Value Measurements - Nonre

Fair Value Measurements - Nonrecurring (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020	Jun. 30, 2021	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Assets and liabilities measured at fair value
Carrying value of other real estate owned	$ 1,912	$ 2,474	$ 1,877	$ 2,686	$ 5,082	$ 5,004
OREO Valuation allowance	1,165	1,643	$ 1,296	$ 1,613	$ 6,464	$ 6,712
Impaired Loans [Member]
Assets and liabilities measured at fair value
Valuation allowance		12,300
Impaired Loans [Member] \| Reported Value Measurement [Member]
Assets and liabilities measured at fair value
Increase (decrease) of specific allocations within the provision for loan losses		1,400
Fair Value, Measurements, Nonrecurring [Member]
Assets and liabilities measured at fair value
Total	9,099	12,149
Fair Value, Measurements, Nonrecurring [Member] \| Impaired Loans [Member]
Assets and liabilities measured at fair value
Total	7,187	9,675
Valuation allowance	3,800	2,600
Increase (decrease) of specific allocations within the provision for loan losses	1,200
Fair Value, Measurements, Nonrecurring [Member] \| Impaired Loans [Member] \| Reported Value Measurement [Member]
Assets and liabilities measured at fair value
Total	11,000
Fair Value, Measurements, Nonrecurring [Member] \| Other Real Estate Owned [Member]
Assets and liabilities measured at fair value
Total	1,912	2,474
Carrying value of other real estate owned	1,900	2,500
Outstanding balance	3,100	4,100
OREO Valuation allowance	1,200	1,600
Fair Value, Measurements, Nonrecurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Assets and liabilities measured at fair value
Total	9,099	12,149
Fair Value, Measurements, Nonrecurring [Member] \| Fair Value, Inputs, Level 3 [Member] \| Impaired Loans [Member]
Assets and liabilities measured at fair value
Total	7,187	9,675
Fair Value, Measurements, Nonrecurring [Member] \| Fair Value, Inputs, Level 3 [Member] \| Other Real Estate Owned [Member]
Assets and liabilities measured at fair value
Total	$ 1,912	$ 2,474

Fair Values of Financial Inst_3

Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Financial assets:
Cash and due from banks	$ 26,705	$ 24,306
Interest earning deposits with financial institutions	492,548	305,597
Securities available-for-sale	715,188	496,178
FHLBC and FRBC Stock	9,917	9,917
Bank-owned life insurance	64,265	63,102
Mortgage servicing rights	5,320	4,224
Financial liabilities:
Noninterest bearing deposits	1,037,638	909,505
Junior subordinated debentures	25,773	25,773
Senior notes	44,454	44,375
Reported Value Measurement [Member]
Financial assets:
Cash and due from banks	26,705	24,306
Interest earning deposits with financial institutions	492,548	305,597
Securities available-for-sale	715,188	496,178
FHLBC and FRBC Stock	9,917	9,917
Loans held for sale	3,009	12,611
Net loans	1,840,993	2,000,996
Mortgage servicing rights	5,320	4,224
Interest rate swap agreements	5,292	9,388
Interest rate lock commitments and forward contracts	875	840
Interest receivable on securities and loans	8,956	9,698
Financial liabilities:
Noninterest bearing deposits	1,037,638	909,505
Interest bearing deposits	1,676,691	1,627,568
Securities sold under repurchase agreements	42,962	66,980
Junior subordinated debentures	25,773	25,773
Subordinated debentures	59,190
Senior notes	44,454	44,375
Note payable and other borrowings	20,155	23,393
Interest rate swap agreements	7,767	13,071
Interest payable on deposits and borrowings	1,920	418
Estimate of Fair Value Measurement [Member]
Financial assets:
Cash and due from banks	26,705	24,306
Interest earning deposits with financial institutions	492,548	305,597
Securities available-for-sale	715,188	496,178
FHLBC and FRBC Stock	9,917	9,917
Loans held for sale	3,009	12,611
Net loans	1,849,933	2,009,773
Mortgage servicing rights	5,320	4,224
Interest rate swap agreements	5,292	9,388
Interest rate lock commitments and forward contracts	875	840
Interest receivable on securities and loans	8,956	9,698
Financial liabilities:
Noninterest bearing deposits	1,037,638	909,505
Interest bearing deposits	1,677,796	1,630,109
Securities sold under repurchase agreements	42,962	66,980
Junior subordinated debentures	18,557	14,658
Subordinated debentures	60,390
Senior notes	44,724	44,600
Note payable and other borrowings	20,600	24,043
Interest rate swap agreements	7,767	13,071
Interest payable on deposits and borrowings	1,920	418
Fair Value, Inputs, Level 1 [Member]
Financial assets:
Cash and due from banks	26,705	24,306
Interest earning deposits with financial institutions	492,548	305,597
Securities available-for-sale	4,070	4,117
Financial liabilities:
Noninterest bearing deposits	1,037,638	909,505
Senior notes	44,724	44,600
Fair Value, Inputs, Level 2 [Member]
Financial assets:
Securities available-for-sale	705,558	487,742
FHLBC and FRBC Stock	9,917	9,917
Loans held for sale	3,009	12,611
Interest rate swap agreements	5,292	9,388
Interest rate lock commitments and forward contracts	875	840
Interest receivable on securities and loans	8,956	9,698
Financial liabilities:
Interest bearing deposits	1,677,796	1,630,109
Securities sold under repurchase agreements	42,962	66,980
Junior subordinated debentures	18,557	14,658
Subordinated debentures	60,390
Note payable and other borrowings	20,600	24,043
Interest rate swap agreements	7,767	13,071
Interest payable on deposits and borrowings	1,920	418
Fair Value, Inputs, Level 3 [Member]
Financial assets:
Securities available-for-sale	5,560	4,319
Net loans	1,849,933	2,009,773
Mortgage servicing rights	$ 5,320	$ 4,224

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 ($)	Sep. 30, 2021USD ($)item	Dec. 31, 2020USD ($)item
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Loan pool hedge	$ 50,000,000
Term of interest rate risk cash flow hedge	5 years
Amount of ineffectiveness, included in net income		$ 0
Weighted average maturity			4 years 8 months 12 days
Interest Rate Products
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Notional Amount		25,800,000
Designated as Hedging Instrument [Member]
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Derivative assets designated as hedging instruments, fair value		1,567,000
Derivative liabilities designated as hedging instruments, fair value		$ 4,042,000
Designated as Hedging Instrument [Member] \| Interest Rate Products
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Derivative assets designated as hedging instruments, classified in other assets			$ 2,697,000
Derivative liabilities designated as hedging instruments, fair value			$ 6,380,000
Designated as Hedging Instrument [Member] \| Interest Rate Products \| OSBC Affiliates
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Derivative, number of transactions \| item		2	2
Notional Amount		$ 75,774,000	$ 75,774,000
Derivative assets designated as hedging instruments, classified in other assets		1,567,000
Derivative liabilities designated as hedging instruments, classified in other liabilities		4,042,000	6,380,000
Designated as Hedging Instrument [Member] \| Interest Rate Swap [Member] \| OSBC Affiliates
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Derivative assets designated as hedging instruments, classified in other assets			$ 2,697,000
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		4,600,000
Total Derivative liabilities not designated as hedging instruments, fair value		$ 3,756,000
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		26	28
Notional Amount		$ 167,218,000	$ 189,126,000
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets		3,725,000	6,691,000
Interest rate derivatives, derivative not designated as hedging instruments, classified in other liabilities		$ 3,725,000	6,691,000
Weighted average maturity		4 years 1 month 6 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	$ 17,200,000	$ 740,000	1,400,000
Investment securities pledged with financial institutions, dollars		$ 0	$ 0
Number of correspondent financial institutions where investment securities are pledged \| item		1	1
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		132	4
Notional Amount		$ 46,753,000	$ 26,523,000
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets		$ 875,000
Interest rate derivatives, derivative not designated as hedging instruments, classified in other liabilities			$ 88,000
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			205
Notional Amount			$ 84,472,000
Interest rate derivatives, derivative assets not designated as hedging instruments, classified in other assets			840,000
Not Designated as Hedging Instrument [Member] \| Other Contracts
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Derivative, number of transactions \| item		3
Notional Amount		$ 17,297,000
Derivative assets designated as hedging instruments, classified in other assets			7,531,000
Derivative liabilities designated as hedging instruments, classified in other liabilities			$ 6,779,000
Interest rate derivatives, derivative not designated as hedging instruments, classified in other liabilities		31,000
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		189,000
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		$ 175,000

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, 2021	Sep. 30, 2020
Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk
Amount of Loss Recognized in OCI on Derivative	$ 1,800,000	$ 3,300,000
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	$ 40,000	$ (72,000)

Derivatives, Hedging Activiti_5

Derivatives, Hedging Activities and Financial Instruments with Off-Balance Sheet Risk - Commitments (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Company's contractual commitments due to letters of credit
Total letters of credit	$ 16,210	$ 14,320
Allowance for Credit Loss on Unfunded Commitments	2,200
Decrease In Allowance for Credit Loss on unfunded Commitments	(47,000)
Fixed [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	861	685
Variable [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	15,349	13,635
Commitments to Extend Credit to Borrowers [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	16,143	14,253
Commitments to Extend Credit to Borrowers [Member] \| Fixed [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	861	685
Commitments to Extend Credit to Borrowers [Member] \| Variable [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	15,282	13,568
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	8,775	9,380
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	329
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	8,446	9,051
Commitments to Extend Credit to Borrowers [Member] \| Performance Guarantee [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	7,368	4,873
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	532	356
Commitments to Extend Credit to Borrowers [Member] \| Performance Guarantee [Member] \| Variable [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	6,836	4,517
Commitments to Extend Credit Nonborrowers [Member] \| Performance Guarantee [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	67	67
Commitments to Extend Credit Nonborrowers [Member] \| Performance Guarantee [Member] \| Variable [Member]
Company's contractual commitments due to letters of credit
Total letters of credit	67	67
Letter of Credit [Member] \| Unused lines of Credit [Member]
Company's contractual commitments due to letters of credit
Loan commitments	457,687	405,181
Letter of Credit [Member] \| Unused lines of Credit [Member] \| Fixed [Member]
Company's contractual commitments due to letters of credit
Loan commitments	126,753	88,883
Letter of Credit [Member] \| Unused lines of Credit [Member] \| Variable [Member]
Company's contractual commitments due to letters of credit
Loan commitments	$ 330,934	$ 316,298