Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 04, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-17071 | |
Entity Registrant Name | FIRST MERCHANTS CORP | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-1544218 | |
Entity Address, Address Line One | 200 East Jackson Street | |
Entity Address, City or Town | Muncie | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 47305-2814 | |
City Area Code | 765 | |
Local Phone Number | 747-1500 | |
Title of 12(b) Security | Common Stock, $0.125 stated value per share | |
Trading Symbol | FRME | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 54,163,660 | |
Entity Central Index Key | 0000712534 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
ASSETS | |||
Cash and cash equivalents | $ 167,596 | $ 192,896 | |
Interest-bearing deposits | 438,863 | 392,305 | |
Investment securities available for sale | 2,426,900 | 1,919,119 | |
Investment securities held to maturity, net of allowance for credit losses of $245 and $0 (fair value of $1,760,847 and $1,280,293) | 1,721,414 | 1,227,668 | |
Loans held for sale | 18,582 | 3,966 | |
Loans | 9,121,250 | 9,243,174 | |
Allowance for credit losses - Loans | [1] | (199,775) | (130,648) |
Net loans | 8,921,475 | 9,112,526 | |
Premises and equipment | 103,822 | 111,062 | |
Federal Home Loan Bank stock | 28,736 | 28,736 | |
Interest receivable | 54,173 | 53,948 | |
Goodwill | 545,385 | 543,918 | |
Other intangibles | 28,401 | 28,975 | |
Cash surrender value of life insurance | 294,462 | 292,745 | |
Other real estate owned | 601 | 940 | |
Tax asset, deferred and receivable | 36,924 | 12,340 | |
Other assets | 135,763 | 146,066 | |
TOTAL ASSETS | 14,923,097 | 14,067,210 | |
Deposits: | |||
Noninterest-bearing | 2,479,853 | 2,298,138 | |
Interest-bearing | 9,723,547 | 9,063,472 | |
Total Deposits | 12,203,400 | 11,361,610 | |
Borrowings: | |||
Securities sold under repurchase agreements | 146,904 | 177,102 | |
Federal Home Loan Bank advances | 334,243 | 389,430 | |
Subordinated debentures and other borrowings | 118,498 | 118,380 | |
Total Borrowings | 599,645 | 684,912 | |
Interest payable | 2,929 | 3,287 | |
Other liabilities | 245,323 | 141,756 | |
Total Liabilities | 13,051,297 | 12,191,565 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |||
STOCKHOLDERS' EQUITY | |||
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value: Authorized - 600 shares Issued and outstanding - 125 shares | 125 | 125 | |
Common Stock, $0.125 stated value: Authorized - 100,000,000 shares Issued and outstanding - 53,972,386 and 53,922,359 shares | 6,747 | 6,740 | |
Additional paid-in capital | 1,009,182 | 1,005,366 | |
Retained earnings (Accumulated Deficit) | 795,666 | 788,578 | |
Accumulated other comprehensive income | 60,080 | 74,836 | |
Total Stockholders' Equity | 1,871,800 | 1,875,645 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 14,923,097 | $ 14,067,210 | |
[1] | Beginning January 1, 2021, the amount is based on the current expected credit loss methodology. Prior to January 1, 2021, the amount is based on the incurred loss methodology. See additional details in NOTE 1. GENERAL of these Notes to Consolidated Condensed Financial Statement. |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 245 | $ 0 |
Investment securities held to maturity - fair value | $ 1,760,847 | $ 1,280,293 |
Preferred Stock, par value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred Stock, liquidation value per share (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred Stock, authorized (in shares) | 600 | 600 |
Preferred Stock, issued (in shares) | 125 | 125 |
Preferred Stock, outstanding (in shares) | 125 | 125 |
Common Stock, stated value (in dollars per share) | $ 0.125 | $ 0.125 |
Common Stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, issued (in shares) | 53,972,386 | 53,922,359 |
Common Stock, outstanding (in shares) | 53,972,386 | 53,922,359 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Loans receivable: | ||||
Taxable | $ 87,002 | $ 87,312 | $ 172,107 | $ 183,964 |
Tax exempt | 5,545 | 5,359 | 10,884 | 10,674 |
Investment securities: | ||||
Taxable | 7,440 | 6,147 | 14,135 | 13,778 |
Tax exempt | 13,071 | 10,019 | 25,456 | 19,354 |
Deposits with financial institutions | 129 | 134 | 243 | 709 |
Federal Home Loan Bank stock | 88 | 281 | 266 | 580 |
Total Interest Income | 113,275 | 109,252 | 223,091 | 229,059 |
INTEREST EXPENSE | ||||
Deposits | 5,823 | 12,707 | 12,023 | 34,455 |
Federal funds purchased | 2 | 2 | 4 | 113 |
Securities sold under repurchase agreements | 75 | 92 | 162 | 444 |
Federal Home Loan Bank advances | 1,452 | 1,794 | 2,894 | 3,568 |
Subordinated debentures and other borrowings | 1,659 | 1,639 | 3,316 | 3,584 |
Total Interest Expense | 9,011 | 16,234 | 18,399 | 42,164 |
NET INTEREST INCOME | 104,264 | 93,018 | 204,692 | 186,895 |
Provision for credit losses - loans | 0 | 21,895 | 0 | 41,647 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 104,264 | 71,123 | 204,692 | 145,248 |
OTHER INCOME | ||||
Net gains and fees on sales of loans | 8,325 | 3,674 | 12,311 | 7,037 |
Increase in cash surrender value of life insurance | 1,205 | 1,231 | 2,394 | 2,591 |
Gains on life insurance benefits | 0 | 95 | 147 | 95 |
Net realized gains on sales of available for sale securities | 1,761 | 3,068 | 3,560 | 7,680 |
Other income | 1,017 | 1,028 | 1,249 | 1,293 |
Total Other Income | 30,884 | 26,481 | 54,975 | 56,280 |
OTHER EXPENSES | ||||
Salaries and employee benefits | 42,438 | 35,698 | 81,249 | 74,941 |
Net occupancy | 5,615 | 5,447 | 12,106 | 11,248 |
Equipment | 4,848 | 4,489 | 9,878 | 8,833 |
Marketing | 1,122 | 2,092 | 2,246 | 3,535 |
Outside data processing fees | 4,698 | 2,618 | 8,942 | 6,817 |
Printing and office supplies | 313 | 279 | 596 | 666 |
Amortization of Intangible Assets | 1,464 | 1,511 | 2,821 | 3,025 |
FDIC assessments | 1,461 | 1,472 | 2,829 | 2,995 |
Other real estate owned and foreclosure expenses | 178 | 684 | 912 | 1,189 |
Professional and other outside services | 2,976 | 1,553 | 5,519 | 3,811 |
Other expenses | 4,182 | 4,146 | 8,295 | 9,100 |
Total Other Expenses | 69,295 | 59,989 | 135,393 | 126,160 |
INCOME BEFORE INCOME TAX | 65,853 | 37,615 | 124,274 | 75,368 |
Income tax expense | 10,294 | 4,623 | 19,246 | 8,113 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 55,559 | $ 32,992 | $ 105,028 | $ 67,255 |
Earnings Per Share [Abstract] | ||||
Basic Net Income Available to Common Stockholders (in dollars per share) | $ 1.03 | $ 0.62 | $ 1.95 | $ 1.24 |
Diluted Net Income Available to Common Stockholders (in dollars per share) | 1.03 | 0.62 | 1.94 | 1.24 |
Cash Dividends Paid (in dollars per share) | $ 0.29 | $ 0.26 | $ 0.55 | $ 0.52 |
Average Diluted Shares Outstanding (in shares) | 54,184,424 | 53,942,567 | 54,159,332 | 54,429,519 |
Service charges on deposit accounts | ||||
OTHER INCOME | ||||
Other income | $ 5,596 | $ 4,312 | $ 10,860 | $ 10,282 |
Fiduciary and wealth management fees | ||||
OTHER INCOME | ||||
Other income | 7,510 | 5,601 | 13,932 | 11,586 |
Card payment fees | ||||
OTHER INCOME | ||||
Other income | 4,159 | 6,097 | 8,526 | 12,004 |
Derivative hedge fees | ||||
OTHER INCOME | ||||
Other income | 943 | 1,042 | 1,260 | 2,981 |
Other customer fees | ||||
OTHER INCOME | ||||
Other income | $ 368 | $ 333 | $ 736 | $ 731 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 55,559 | $ 32,992 | $ 105,028 | $ 67,255 |
Unrealized gains/losses on securities available-for-sale: | ||||
Unrealized holding gain (loss) arising during the period | 32,238 | 15,880 | (15,673) | 54,315 |
Reclassification adjustment for losses (gains) included in net income | (1,761) | (3,068) | (3,560) | (7,680) |
Tax effect | (6,400) | (2,691) | 4,039 | (9,793) |
Net of tax | 24,077 | 10,121 | (15,194) | 36,842 |
Unrealized gain/loss on cash flow hedges: | ||||
Unrealized holding gain (loss) arising during the period | (16) | (145) | 42 | (1,459) |
Reclassification adjustment for losses (gains) included in net income | 260 | 231 | 513 | 357 |
Tax effect | (51) | (18) | (117) | 231 |
Net of tax | 193 | 68 | 438 | (871) |
Total other comprehensive income (loss), net of tax | 24,270 | 10,189 | (14,756) | 35,971 |
Comprehensive income | $ 79,829 | $ 43,181 | $ 90,272 | $ 103,226 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Cumulative effect of ASC 326 adoption | Adjusted balance | Preferred | PreferredAdjusted balance | Common Stock | Common StockAdjusted balance | Additional Paid in Capital | Additional Paid in CapitalAdjusted balance | Retained Earnings | Retained EarningsCumulative effect of ASC 326 adoption | Retained EarningsAdjusted balance | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Adjusted balance |
Beginning balance (in shares) at Dec. 31, 2019 | 125 | 55,368,482 | ||||||||||||
Beginning balance at Dec. 31, 2019 | $ 1,786,437 | $ 125 | $ 6,921 | $ 1,054,997 | $ 696,520 | $ 27,874 | ||||||||
Comprehensive income: | ||||||||||||||
Net income | 67,255 | 67,255 | ||||||||||||
Other comprehensive income, net of tax | 35,971 | 35,971 | ||||||||||||
Cash dividends on common stock | (28,336) | (28,336) | ||||||||||||
Repurchase of common stock (in shares) | (1,634,437) | |||||||||||||
Repurchases of common stock | (55,912) | $ (204) | (55,708) | |||||||||||
Share-based compensation (in shares) | 8,591 | |||||||||||||
Share-based compensation | 2,433 | $ 1 | 2,432 | |||||||||||
Stock issued under employee benefit plans (in shares) | 11,511 | |||||||||||||
Stock issued under employee benefit plans | 309 | $ 1 | 308 | |||||||||||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 31,607 | |||||||||||||
Stock issued under dividend reinvestment and stock purchase plan | 863 | $ 4 | 859 | |||||||||||
Stock options exercised (in shares) | 10,050 | |||||||||||||
Stock options exercised | 83 | $ 1 | 82 | |||||||||||
Restricted shares withheld for taxes (in shares) | (304) | |||||||||||||
Restricted shares withheld for taxes | (8) | (8) | ||||||||||||
Ending balance (in shares) at Jun. 30, 2020 | 125 | 53,795,500 | ||||||||||||
Ending balance at Jun. 30, 2020 | 1,809,095 | $ 125 | $ 6,724 | 1,002,962 | 735,439 | 63,845 | ||||||||
Beginning balance (in shares) at Mar. 31, 2020 | 125 | 53,754,137 | ||||||||||||
Beginning balance at Mar. 31, 2020 | 1,777,960 | $ 125 | $ 6,719 | 1,000,942 | 716,518 | 53,656 | ||||||||
Comprehensive income: | ||||||||||||||
Net income | 32,992 | 32,992 | ||||||||||||
Other comprehensive income, net of tax | 10,189 | 10,189 | ||||||||||||
Cash dividends on common stock | (14,071) | (14,071) | ||||||||||||
Share-based compensation (in shares) | 5,259 | |||||||||||||
Share-based compensation | 1,213 | $ 1 | 1,212 | |||||||||||
Stock issued under employee benefit plans (in shares) | 11,511 | |||||||||||||
Stock issued under employee benefit plans | 309 | $ 1 | 308 | |||||||||||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 15,897 | |||||||||||||
Stock issued under dividend reinvestment and stock purchase plan | 435 | $ 2 | 433 | |||||||||||
Stock options exercised (in shares) | 9,000 | |||||||||||||
Stock options exercised | 76 | $ 1 | 75 | |||||||||||
Restricted shares withheld for taxes (in shares) | (304) | |||||||||||||
Restricted shares withheld for taxes | (8) | (8) | ||||||||||||
Ending balance (in shares) at Jun. 30, 2020 | 125 | 53,795,500 | ||||||||||||
Ending balance at Jun. 30, 2020 | 1,809,095 | $ 125 | $ 6,724 | 1,002,962 | 735,439 | 63,845 | ||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 125 | 125 | 53,922,359 | 53,922,359 | ||||||||||
Beginning balance at Dec. 31, 2020 | 1,875,645 | $ (68,040) | $ 1,807,605 | $ 125 | $ 125 | $ 6,740 | $ 6,740 | 1,005,366 | $ 1,005,366 | 788,578 | $ (68,040) | $ 720,538 | 74,836 | $ 74,836 |
Comprehensive income: | ||||||||||||||
Net income | 105,028 | 105,028 | ||||||||||||
Other comprehensive income, net of tax | (14,756) | (14,756) | ||||||||||||
Cash dividends on common stock | (29,900) | (29,900) | ||||||||||||
Share-based compensation (in shares) | 4,660 | |||||||||||||
Share-based compensation | 2,398 | $ 1 | 2,397 | |||||||||||
Stock issued under employee benefit plans (in shares) | 8,114 | |||||||||||||
Stock issued under employee benefit plans | 306 | $ 1 | 305 | |||||||||||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 20,220 | |||||||||||||
Stock issued under dividend reinvestment and stock purchase plan | $ 931 | $ 3 | 928 | |||||||||||
Stock options exercised (in shares) | 17,300 | 17,300 | ||||||||||||
Stock options exercised | $ 198 | $ 2 | 196 | |||||||||||
Restricted shares withheld for taxes (in shares) | (267) | |||||||||||||
Restricted shares withheld for taxes | (10) | (10) | ||||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 125 | 53,972,386 | ||||||||||||
Ending balance at Jun. 30, 2021 | 1,871,800 | $ 125 | $ 6,747 | 1,009,182 | 795,666 | 60,080 | ||||||||
Beginning balance (in shares) at Mar. 31, 2021 | 125 | 53,953,723 | ||||||||||||
Beginning balance at Mar. 31, 2021 | $ 1,805,856 | $ 125 | $ 6,744 | $ 1,007,300 | $ 755,877 | $ 35,810 | ||||||||
Comprehensive income: | ||||||||||||||
Net income | 55,559 | 55,559 | ||||||||||||
Other comprehensive income, net of tax | 24,270 | 24,270 | ||||||||||||
Cash dividends on common stock | (15,770) | (15,770) | ||||||||||||
Share-based compensation (in shares) | 375 | |||||||||||||
Share-based compensation | 1,208 | 1,208 | ||||||||||||
Stock issued under employee benefit plans (in shares) | 4,185 | |||||||||||||
Stock issued under employee benefit plans | 162 | $ 1 | 161 | |||||||||||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 11,103 | |||||||||||||
Stock issued under dividend reinvestment and stock purchase plan | 488 | $ 2 | 486 | |||||||||||
Stock options exercised (in shares) | 3,000 | |||||||||||||
Stock options exercised | 27 | 27 | ||||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 125 | 53,972,386 | ||||||||||||
Ending balance at Jun. 30, 2021 | $ 1,871,800 | $ 125 | $ 6,747 | $ 1,009,182 | $ 795,666 | $ 60,080 |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) (Parenthetical) | 12 Months Ended |
Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member |
CONSOLIDATED CONDENSED STATEM_5
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flow From Operating Activities: | ||
Net income | $ 105,028 | $ 67,255 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 0 | 41,647 |
Depreciation and amortization | 5,442 | 5,435 |
Change in deferred taxes | (1,179) | (18,509) |
Share-based compensation | 2,398 | 2,433 |
Loans originated for sale | (275,277) | (322,288) |
Proceeds from sales of loans held for sale | 271,360 | 336,583 |
Gains on sales of loans held for sale | (10,699) | (6,159) |
Gains on sales of securities available for sale | (3,560) | (7,680) |
Increase in cash surrender of life insurance | (2,394) | (2,591) |
Gains on life insurance benefits | (147) | (95) |
Change in interest receivable | (225) | (8,162) |
Change in interest payable | (358) | (1,167) |
Other adjustments | 4,728 | 27,998 |
Net cash provided by operating activities | 95,117 | 114,700 |
Cash Flows from Investing Activities: | ||
Net change in interest-bearing deposits | (46,558) | (261,758) |
Purchases of: | ||
Securities available for sale | (647,206) | (341,116) |
Securities held to maturity | (618,068) | (221,711) |
Proceeds from sales of securities available for sale | 72,657 | 167,390 |
Proceeds from maturities of: | ||
Securities available for sale | 151,419 | 135,398 |
Securities held to maturity | 122,397 | 127,380 |
Net change in loans | 46,880 | (840,804) |
Net cash and cash equivalents paid in acquisition | (2,933) | 0 |
Proceeds from the sale of other real estate owned | 530 | 592 |
Proceeds from life insurance benefits | 824 | 177 |
Proceeds from mortgage portfolio loan sale | 76,067 | 0 |
Other adjustments | (4,484) | (5,190) |
Net cash used in investing activities | (848,475) | (1,239,642) |
Net change in : | ||
Demand and savings deposits | 936,290 | 1,419,771 |
Certificates of deposit and other time deposits | (94,500) | (293,739) |
Borrowings | 8,737 | 467,056 |
Repayment of borrowings | (94,004) | (332,595) |
Cash dividends on common stock | (29,900) | (28,336) |
Stock issued under employee benefit plans | 306 | 309 |
Stock issued under dividend reinvestment and stock purchase plans | 931 | 863 |
Stock options exercised | 198 | 83 |
Repurchase of common stock | 0 | (55,912) |
Net cash provided by financing activities | 728,058 | 1,177,500 |
Net Change in Cash and Cash Equivalents | (25,300) | 52,558 |
Cash and Cash Equivalents, January 1 | 192,896 | 177,201 |
Cash and Cash Equivalents, June 30 | 167,596 | 229,759 |
Additional cash flow information: | ||
Interest paid | 18,757 | 43,331 |
Income tax paid (refunded) | 16,810 | (300) |
Loans transferred to other real estate owned | 64 | 761 |
Fixed assets transferred to other real estate owned | 6,282 | 262 |
Non-cash investing activities using trade date accounting | 104,552 | 13,115 |
ROU assets obtained in exchange for new operating lease liabilities | 1,432 | 1,398 |
In conjunction with the acquisitions, liabilities were assumed as follows: | ||
Fair value of assets acquired | 4,041 | 0 |
Cash paid in acquisition | (3,225) | 0 |
Liabilities assumed | $ 816 | $ 0 |
General
General | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | GENERAL Financial Statement Preparation The Consolidated Condensed Balance Sheet of the Corporation as of December 31, 2020, has been derived from the audited consolidated balance sheet of the Corporation as of that date. Certain information and note disclosures normally included in the Corporation’s annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission. The results of operations for the three and six months ended June 30, 2021, are not necessarily indicative of the results to be expected for the year. Reclassifications have been made to prior financial statements to conform to the current financial statement presentation. These reclassifications had no effect on net income. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses and fair value of financial instruments. The uncertainties related to the coronavirus disease 2019 ("COVID-19") could cause significant changes to these estimates compared to what was known at the time these financial statements were prepared. Significant Accounting Policies The significant accounting policies followed by the Corporation and its wholly-owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting, with the exception of the Corporation's adoption of ASC 326 as described below under the heading "Recent Accounting Changes Adopted In 2021." The Corporation revised certain accounting policies and implemented certain accounting policy elections, related to the adoption of ASC 326 which are described below. All adjustments, which are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported, have been included in the accompanying Consolidated Condensed Financial Statements. The Corporation adopted FASB Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("CECL") on January 1, 2021. CECL replaces the previous "incurred loss" model for measuring credit losses, which encompassed allowances for current known and inherent losses within the portfolio, with an "expected loss" model for measuring credit losses, which encompasses allowances for losses expected to be incurred over the life of the portfolio. The new CECL model requires the measurement of all expected credit losses for financial assets measured at amortized cost and certain off-balance sheet credit exposures based on historical experiences, current conditions, and reasonable and supportable forecasts. CECL also requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as credit quality and underwriting standards of an organization's portfolio. In addition, CECL includes certain changes to the accounting for investment securities available for sale depending on whether management intends to sell the securities or believes that it is more likely than not they will be required to sell. As of the adoption and day one measurement date of January 1, 2021, the Corporation recorded a one-time cumulative-effect adjustment to retained earnings, net of income taxes, on the consolidated balance sheet of $68.0 million. The allowance increased 57 percent from December 31, 2020, or $74.1 million, because it covered expected credit losses over the life of the loan portfolio, which approximates four years, and it included an allowance on all purchased loans that were previously excluded from the allowance for loan losses calculation. CECL also requires the establishment of a reserve for potential losses from unfunded commitments that is recorded in other liabilities, separate from allowance for credit losses, which was approximately $20.5 million. An allowance for credit losses of $245,000 was recorded on the state and municipal securities classified as held to maturity based on applying the long-term historical credit loss rate, as published by Moody’s, for similarly rated securities. The following table details the impact of the adoption of CECL on the Corporation's balance sheet as of January 1, 2021. December 31, 2020 Impact of CECL Adoption January 1, 2021 Post-CECL Adoption Assets: Held to maturity securities 1,227,668 (245) 1,227,423 Loans 9,243,174 4,776 9,247,950 Allowance for credit losses - Loans (130,648) (74,055) (204,703) Net loans 9,112,526 (69,279) 9,043,247 Tax asset, deferred and receivable 12,340 21,984 34,324 Liabilities: Allowance for credit losses on unfunded loan commitments — 20,500 20,500 Stockholder's Equity: Retained Earnings 788,578 (68,040) 720,538 — Allowance for credit losses on investment securities available for sale – for investment securities available for sale in an unrealized loss position, the Corporation first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For investment securities available for sale that do not meet the aforementioned criteria, the Corporation evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Corporation considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Unrealized losses that have not been recorded through an allowance for credit losses are recognized in other comprehensive income. Adjustments to the allowance for credit losses are reported in the income statement as a component of the provision for credit loss. The Corporation has made the accounting policy election to exclude accrued interest receivable on investment securities available for sale from the estimate of credit losses. Investment securities available for sale are charged off against the allowance or, in the absence of any allowance, written down through the income statement when deemed uncollectible or when either of the aforementioned criteria regarding intent or requirement to sell is met. The Corporation did not record an allowance for credit losses on its investment securities available for sale as the unrealized losses were attributable to changes in interest rates, not credit quality. Allowance for credit losses on investment securities held to maturity ("ACL - Investments") – the ACL - Investments is a contra asset-valuation account that is deducted from the amortized cost basis of investment securities held to maturity to present the net amount expected to be collected. Investment securities held to maturity are charged off against the ACL - Investments when deemed uncollectible. Adjustments to the ACL - Investments are reported in the income statement as a component of the provision for credit loss. The Corporation measures expected credit losses on held to maturity debt securities on a collective basis by major security type with each type sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Corporation has made the accounting policy election to exclude accrued interest receivable on investment securities held to maturity from the estimate of credit losses. With regard to U.S. Government-sponsored agency and mortgage-backed securities, all these securities are issued by a U.S. government-sponsored entity and have an implicit or explicit government guarantee. With regard to securities issued by states and municipalities and other investment securities held to maturity, management considers (1) issuer bond ratings, (2) the financial condition of the issuer, (3) historical loss rates for given bond ratings, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities. Historical loss rates associated with securities having similar grades as those in the Corporation's portfolio have generally not been significant. Furthermore, as of June 30, 2021, there were no past due principal and interest payments associated with these securities. An allowance for credit losses of $245,000 was recorded on the state and municipal securities classified as held to maturity based on applying the long-term historical credit loss rate, as published by Moody’s, for similarly rated securities. Purchased Credit Deteriorated (“PCD”) – the Corporation has purchased loans, some of which have experienced more than insignificant credit deterioration since origination. PCD loans are recorded at the amount paid. An allowance for credit losses is determined using the same methodology as other loans held for investment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is the noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses. Allowance for Credit Losses - Loans ("ACL - Loans") - the ACL - Loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on loans over the contractual term. Loans are charged off against the allowance when the uncollectibility of the loan is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. Adjustments to the ACL- Loans are reported in the income statement as a component of provision for credit loss. The Corporation has made the accounting policy election to exclude accrued interest receivable on loans from the estimate of credit losses. Further information regarding the policies and methodology used to estimate the ACL - Loans is detailed in NOTE 4. LOANS AND ALLOWANCE of these Notes to Consolidated Condensed Financial Statements. Allowance for Credit Losses – Off-Balance Sheet Credit Exposures – the allowance for credit losses on off-balance sheet credit exposures is a liability account representing expected credit losses over the contractual period for which the Corporation is exposed to credit risk resulting from a contractual obligation to extend credit. No allowance is recognized if the Corporation has the unconditional right to cancel the obligation. Off-balance sheet credit exposures primarily consist of amounts available under outstanding lines of credit and letters of credit. For the period of exposure, the estimate of expected credit losses considers both the likelihood that funding will occur and the amount expected to be funded over the estimated remaining life of the commitment or other off-balance sheet exposure. The likelihood and expected amount of funding are based on historical utilization rates. The amount of the allowance represents management’s best estimate of expected credit losses on commitments expected to be funded over the contractual life of the commitment. The allowance for off-balance sheet credit exposures is adjusted through the income statement as a component of provision for credit loss. Impact of COVID-19 On January 30, 2020, the World Health Organization (“WHO”) announced that the outbreak of COVID-19 constituted a public health emergency of international concern. On March 11, 2020, WHO declared COVID-19 to be a global pandemic and, on March 13, 2020, the President of the United States declared the COVID-19 outbreak a national emergency. The health concerns relating to the COVID-19 outbreak and related governmental actions taken to reduce the spread of the virus have significantly impacted the global economy (including the states and local economies in which the Corporation operates), disrupted supply chains, and created significant volatility and disruption in financial markets. The outbreak resulted in authorities implementing numerous measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter in place or total lock-down orders and business limitations and shutdowns. As a result of the shelter in place mandates in effect beginning early in the second quarter of 2020, commercial activity throughout our geographic footprint, as well as nationally, have decreased significantly during 2020 and 2021. These containment measures led to increased unemployment and negatively impacted consumer and business spending. Although the vaccination rate in the U.S. continues to increase and most states have reopened, commercial activity has not yet returned to the levels existing prior to the outbreak of the pandemic. Moreover, certain states and localities have recently experienced significant increases in the number of individuals diagnosed with COVID-19 as variant strains of the virus have spread, which may further complicate efforts of the medical community and federal, state and local governments to respond to the pandemic. The continued impact of COVID-19 on the Corporation will depend on numerous factors and future developments that are highly uncertain and cannot be predicted with confidence. It is unknown how long the COVID-19 pandemic will last, or when restrictions on individuals and businesses will be fully lifted and businesses and their employees will be able to resume normal activities. Additional information may emerge regarding new developments with COVID-19 and additional actions may be taken by federal, state and local governments to contain COVID-19 or treat its impact. Changes in the behavior of customers, businesses and their employees as a result of COVID-19 pandemic are also unknown. As a result of COVID-19 and the actions taken to contain it or reduce its impact, we may continue to experience changes in the demand for our products and services, changes in the value of collateral securing outstanding loans, reductions in the credit quality of borrowers and the inability of borrowers to repay loans in accordance with their terms. Our commercial and consumer customers are experiencing varying degrees of financial distress, which is expected to continue throughout 2021, especially if positive cases increase and economic shutdowns continue or are reinstated. These and similar factors and events may have substantial negative effects on the business, financial condition and results of operations of the Corporation and its customers. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law, providing an approximately $2 trillion stimulus package that included direct payments to individual taxpayers, economic stimulus to significantly impacted industry sectors, emergency funding for hospitals and providers, small business loans, increased unemployment benefits, and a variety of tax incentives. For small businesses, eligible nonprofits and certain others, the CARES Act established the Paycheck Protection Program (“PPP”), a lending program administered by the Small Business Administration (“SBA”) that was intended to incentivize participants to retain their employees by providing them with loans that are fully guaranteed by the U.S. government and subject to forgiveness if program guidelines are met. The CARES Act and the PPP were further amended throughout 2020 in order to provide additional funding and to extend the two-year maturity for PPP loans to five years. On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act was signed into law as part of the Consolidated Appropriations Act, 2021 (the “CAA”), which amended the CARES Act to, among other things, provide additional funding for the PPP and extend the program through March 31, 2021. Under the American Rescue Plan Act of 2021 and the PPP Extension Act of 2021, which were both enacted during March 2021, additional funds were provided for the program and the deadline for applying for PPP loans was extended through May 31, 2021 (with the SBA given until June 30, 2021 to process loan applications). The Bank actively participated in assisting its customers with PPP funding during all phases of the program. The vast majority of the Bank’s PPP loans made in 2020 have two-year maturities, while the loans made in 2021 have five-year maturities. Loans under the program earn interest at a fixed rate of 1 percent. As of June 30, 2021, the Corporation had $415.8 million of Paycheck Protection Program ("PPP") loans compared to the December 31, 2020 balance of $667.1 million. The Bank anticipates that the majority of its remaining PPP loans will also be forgiven by the SBA in accordance with the terms of the program. Guidance on Non-TDR Loan Modifications due to COVID-19 On March 22, 2020, a statement was issued by the Bank’s banking regulators and titled the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” (the “Interagency Statement”) that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of COVID-19. Additionally, Section 4013 of the CARES Act further provides that a qualified loan modification is exempt by law from classification as a troubled debt restructure as defined by GAAP, from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak under the National Emergencies Act (50 U.S.C. 1601 et seq.) terminates. The Interagency Statement was subsequently revised on April 7, 2020 to clarify the interaction of the original guidance with Section 4013 of the CARES Act, as well as setting forth the banking regulators’ views on consumer protection considerations. In accordance with such guidance, the Bank has offered short-term modifications made in response to COVID-19 to borrowers who were current and otherwise not past due. These included short-term, 180 days or less, modifications in the form of payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. The CAA, as described above, extended the expiration date for COVID-related loan modifications exempt from troubled debt restructuring classification until the earlier of January 1, 2022, or 60 days after the termination of the national emergency. Details of the Corporation's modifications are included in the "LOAN QUALITY" section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this Form 10-Q. Recent Accounting Changes Adopted In 2021 The Corporation continually monitors potential accounting pronouncements and the following pronouncements have been deemed to have the most applicability to the Corporation's financial statements: FASB Accounting Standards Updates No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Summary - The FASB issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This new guidance replaces the previous "incurred loss" model for measuring credit losses with an "expected life of loan loss" model, referred to as the CECL model. Under the CECL model, certain financial assets carried at amortized cost, such as loans held for investment and held-to-maturity debt securities, are required to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This measurement takes place at the time the financial asset is first added to the balance sheet and periodically thereafter. This differs significantly from the “incurred loss” model, which delayed recognition until it is probable a loss had been incurred. The Corporation developed models that satisfy the requirements of the new standard which are governed by a system of internal controls and a cross-functional working group consisting of accounting, finance, and credit administration personnel. The loan portfolio was pooled into ten loan segments with similar risk characteristics for which the probability of default/loss given default methodology was applied. The Corporation utilized a one-year economic forecast period then reverted to historical macroeconomic levels for the remaining life of the portfolio. A baseline macroeconomic scenario, along with other scenarios, were used to develop a range of estimated credit losses for which to determine the best estimate within. The ASU was effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Pursuant to the CARES Act and the related joint statement of federal banking regulators (which also became effective as of March 27, 2020), and consistent with guidance from the SEC and FASB, the Corporation elected to delay implementation of ASU No. 2016-13, which was set to expire on December 31, 2020. However, the CAA (as discussed above) extended the temporary relief from CECL compliance to the earlier of the first day of the fiscal year that begins after the date on which the national emergency concerning COVID-19 terminates, or January 1, 2022. The Corporation elected to delay implementation of CECL following the approval of the CARES Act and, with the enactment of the CAA, the Corporation elected to adopt CECL on January 1, 2021. This allows the Corporation to utilize the CECL standard for the entire year of 2021, while its 2020 financial statements were prepared under the incurred loss model. As of the adoption and day one measurement date of January 1, 2021, the Corporation recorded a one-time cumulative-effect adjustment to retained earnings, net of income taxes, on the consolidated balance sheet of $68.0 million. The allowance increased 57 percent from December 31, 2020, or $74.1 million, because it covered expected credit losses over the life of the loan portfolio, which approximates four years, and it included an allowance on all purchased loans that were previously excluded from the allowance for loan losses calculation. CECL also requires the establishment of a reserve for potential losses from unfunded commitments that is recorded in other liabilities, separate from allowance for credit losses, which was approximately $20.5 million. An allowance for credit losses of $245,000 was recorded on the state and municipal securities classified as held to maturity based on applying the long-term historical credit loss rate, as published by Moody’s, for similarly rated securities. FASB Accounting Standards Updates No. 2019-11 - Codification Improvements to (Topic 326): Financial Instruments - Credit Losses Summary - The FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses in order to address issues raised by stakeholders during the implementation of ASU No. 2016-13 , Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments. Among other narrow-scope improvements, the new ASU clarifies guidance around how to report expected recoveries. “Expected recoveries” describes a situation in which an organization recognizes a full or partial write-off of the amortized cost basis of a financial asset, but then later determines that the amount written off, or a portion of that amount, will in fact be recovered. While applying the credit losses standard, stakeholders questioned whether expected recoveries were permitted on assets that had already shown credit deterioration at the time of purchase (also known as PCD assets). In response to this question, the ASU permits organizations to record expected recoveries on PCD assets. In addition to other narrow technical improvements, the ASU also reinforces existing guidance that prohibits organizations from recording negative allowances for available-for-sale debt securities. The ASU includes effective dates and transition requirements that vary depending on whether or not an entity has already adopted ASU No. 2016-13. As discussed above, pursuant to the CARES Act, the Corporation elected to defer the adoption of CECL. Additionally, the 2021 Consolidated Appropriations Act ("CAA"), signed into law on December 27, 2020, amended the CARES Act by extending the temporary relief from CECL compliance to the earlier of the first day of the fiscal year that begins after the date on which the national emergency concerning COVID-19 terminates, or January 1, 2022. The Corporation elected to delay implementation of CECL following the approval of the CARES Act and, with the enactment of the CAA, the Corporation elected to adopt CECL on January 1, 2021. The adoption of this standard did not have a significant effect on the Corporation’s consolidated financial statements or disclosures. FASB Accounting Standards Update No. 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Summary - The FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is expected to reduce cost and complexity related to the accounting for income taxes. The ASU removes specific exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles (GAAP). It eliminates the need for an organization to analyze whether the following apply in a given period: • Exception to the incremental approach for intraperiod tax allocation; • Exceptions to accounting for basis differences when there are ownership changes in foreign investments; and • Exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: • Franchise taxes that are partially based on income; • Transactions with a government that result in a step up in the tax basis of goodwill • Separate financial statements of legal entities that are not subject to tax; and • Enacted changes in tax laws in interim periods. The ASU is part of the FASB’s simplification initiative to make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. For public business entities, the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the ASU was permitted. The Corporation adopted this standard on January 1, 2021 and adoption of this standard did not have a significant effect on the Corporation's consolidated financial statements or disclosures. New Accounting Pronouncements Not Yet Adopted FASB Accounting Standards Updates - No. 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Summary - The FASB issued ASU No. 2020-04 to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. LIBOR and other interbank offered rates are widely used benchmarks or reference rates in the United States and globally. Trillions of dollars in loans, derivatives, and other financial contracts reference LIBOR, the benchmark interest rate banks use to make short-term loans to each other. With global capital markets expected to move away from LIBOR and other interbank offered rates and move toward rates that are more observable or transaction based and less susceptible to manipulation, the FASB launched a broad project in late 2018 to address potential accounting challenges expected to arise from the transition. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. Entities may apply this ASU as of the beginning of an interim period that includes the March 12, 2020 issuance date of the ASU, through December 31, 2022. The Corporation expects to adopt the practical expedients included in the ASU prior to December 31, 2022. The Corporation is implementing a transition plan to identify and modify its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Corporation is assessing ASU 2020-04 and its impact on the Corporation's transition away from LIBOR for its loans and other financial instruments. FASB Accounting Standards Updates - Accounting Standards Update No. 2021-01 - Reference Rate Reform (Topic 848): Scope Summary - The FASB has published ASU 2021-01, Reference Rate Reform. ASU 2021-01 clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply the amendments in this Update on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, up to the date that financial statements are available to be issued. If an entity elects to apply any of the amendments in this Update for an eligible hedging relationship, any adjustments as a result of those elections must be reflected as of the date the entity applies the election. The amendments in this Update do not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship (including periods after December 31, 2022). The Corporation is assessing ASU 2021-01 and its impact on the Corporation's transition away from LIBOR for its loans and other financial instruments. |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition | ACQUISITION Hoosier Trust Company On April 1, 2021, the Bank acquired 100 percent of Hoosier Trust Company ("Hoosier") through a merger of Hoosier with and into the Bank. The consideration paid to shareholders of Hoosier at closing was $3,225,000 in cash. Prior to the acquisition, Hoosier was an Indiana corporate trust company, headquartered in Indianapolis, Indiana, with approximately $290 million in assets under management. Hoosier’s sole office is now being operated by the Bank as a limited service trust office. Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair value on the date of the acquisition. Based on preliminary valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change based on the timing of the transaction, the purchase price for the Hoosier acquisition is detailed in the following table. If, prior to the end of the one-year measurement period for finalizing the purchase price allocation, information becomes available about facts and circumstances that existed as of the acquisition date, which would indicate adjustments are required to the purchase price allocation, such adjustments will be included in the purchase price allocation retrospectively. Fair Value Cash and cash equivalents $ 292 Other assets 35 Other liabilities (816) Net tangible assets acquired (489) Customer relationship intangible 2,247 Goodwill 1,467 Purchase price $ 3,225 Of the total purchase price, $2,247,000 was allocated to a customer relationship intangible, which will be amortized over its estimated life of 10 years. The remaining purchase price was allocated to goodwill, which is deductible for tax purposes. Pro forma financial information of the Hoosier acquisition is not included in these disclosures as it is deemed immaterial. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The following table summarizes the amortized cost, gross unrealized gains and losses and approximate fair value of investment securities available for sale as of June 30, 2021 and December 31, 2020. Amortized Gross Unrealized Gross Unrealized Fair Available for sale at June 30, 2021 U.S. Treasury $ 1,000 $ — $ — $ 1,000 U.S. Government-sponsored agency securities 11,502 39 — 11,541 State and municipal 1,365,211 87,152 518 1,451,845 U.S. Government-sponsored mortgage-backed securities 952,720 12,937 7,371 958,286 Corporate obligations 4,031 197 — 4,228 Total available for sale $ 2,334,464 $ 100,325 $ 7,889 $ 2,426,900 Amortized Gross Unrealized Gross Unrealized Fair Available for sale at December 31, 2020 U.S. Government-sponsored agency securities $ 2,380 $ 50 $ — $ 2,430 State and municipal 1,168,711 89,420 246 1,257,885 U.S. Government-sponsored mortgage-backed securities 632,267 22,505 103 654,669 Corporate obligations 4,031 104 — 4,135 Total available for sale $ 1,807,389 $ 112,079 $ 349 $ 1,919,119 The following table summarizes the amortized cost, gross unrealized gains and losses, approximate fair value and allowance for credit losses on investment securities held to maturity as of June 30, 2021 and December 31, 2020. Amortized Allowance for Credit Losses Net Carrying Amount Gross Unrealized Gross Unrealized Fair Held to maturity at June 30, 2021 U.S. Government-sponsored agency securities $ 60,677 $ — $ 60,677 $ 1 $ 715 $ 59,963 State and municipal 863,426 245 863,181 31,276 977 893,725 U.S. Government-sponsored mortgage-backed securities 796,056 — 796,056 12,164 2,561 805,659 Foreign investment 1,500 — 1,500 — — 1,500 Total held to maturity $ 1,721,659 $ 245 $ 1,721,414 $ 43,441 $ 4,253 $ 1,760,847 Amortized Allowance for Credit Losses Net Carrying Amount Gross Unrealized Gross Unrealized Fair Held to maturity at December 31, 2020 U.S. Government-sponsored agency securities $ 31,087 $ — $ 31,087 $ 10 $ 113 $ 30,984 State and municipal 619,927 — 619,927 34,978 32 654,873 U.S. Government-sponsored mortgage-backed securities 575,154 — 575,154 17,889 107 592,936 Foreign investment 1,500 — 1,500 — — 1,500 Total held to maturity $ 1,227,668 $ — $ 1,227,668 $ 52,877 $ 252 $ 1,280,293 Accrued interest on investment securities available for sale and held to maturity of $22.9 million are included in the Interest Receivable line on the Corporation's Consolidated Condensed Balance Sheets. The total amount of accrued interest is excluded from the amortized cost of available for sale and held to maturity securities presented above. In determining the allowance for credit losses on investment securities available for sale that are in an unrealized loss position, the Corporation first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through the income statement. For investment securities available for sale that do not meet the aforementioned criteria, the Corporation evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Corporation considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Unrealized losses that have not been recorded through an allowance for credit losses is recognized in other comprehensive income. Adjustments to the allowance are reported in the income statement as a component of the provision for credit loss. The Corporation has made the accounting policy election to exclude accrued interest receivable on investment securities available for sale from the estimate of credit losses. Investment securities available for sale are charged off against the allowance or, in the absence of any allowance, written down through the income statement when deemed uncollectible or when either of the aforementioned criteria regarding intent or requirement to sell is met. The Corporation did not record an allowance for credit losses on its investment securities available for sale as the unrealized losses were attributable to changes in interest rates, not credit quality. The allowance for credit losses on investment securities held to maturity is a contra asset-valuation account that is deducted from the amortized cost basis of investment securities held to maturity to present the net amount expected to be collected. Investment securities held to maturity are charged off against the allowance when deemed uncollectible. Adjustments to the allowance are reported in the income statement as a component of the provision for credit loss. The Corporation measures expected credit losses on investment securities held to maturity on a collective basis by major security type with each type sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Corporation has made the accounting policy election to exclude accrued interest receivable on investment securities held to maturity from the estimate of credit losses. With regard to U.S. Government-sponsored agency and mortgage-backed securities, all these securities are issued by a U.S. government-sponsored entity and have an implicit or explicit government guarantee; therefore, no allowance for credit losses has been recorded for these securities. With regard to securities issued by states and municipalities and other investment securities held to maturity, management considers (1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities. Historical loss rates associated with securities having similar grades as those in the Corporation's portfolio have been insignificant. Furthermore, as of June 30, 2021, there were no past due principal and interest payments associated with these securities. An allowance for credit losses of $245,000 was recorded on the state and municipal securities classified as held to maturity based on applying the long-term historical credit loss rate, as published by Moody’s, for similarly rated securities. On a quarterly basis, the Corporation monitors the credit quality of investment securities held to maturity through the use of credit ratings. The following table summarizes the amortized cost of investment securities held to maturity at June 30, 2021, aggregated by credit quality indicator. Held to Maturity State and municipal Other Total Credit Rating: Aaa $ 54,753 $ 60,677 $ 115,430 Aa1 131,246 — 131,246 Aa2 136,008 — 136,008 Aa3 96,915 — 96,915 A1 66,549 — 66,549 A2 18,962 — 18,962 A3 1,065 — 1,065 Baa2 527 — 527 Non-rated 357,401 797,556 1,154,957 Total $ 863,426 $ 858,233 $ 1,721,659 The following table details activity in the allowance for credit losses on investment securities held to maturity during the six months ended June 30, 2021. State and municipal Allowance for Credit Losses: Balance, December 31, 2020 $ — Impact of adopting ASC 326 245 Provision for credit loss — Securities charged off — Recoveries on securities — Balance, June 30, 2021 $ 245 The following tables summarize, as of June 30, 2021 and December 31, 2020, investment securities available for sale in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by security type and length of time in a continuous unrealized loss position. Less than 12 Months 12 Months or Longer Total Fair Gross Fair Gross Fair Gross Investment securities available for sale at June 30, 2021 State and municipal $ 63,102 $ 518 $ — $ — $ 63,102 $ 518 U.S. Government-sponsored mortgage-backed securities 460,616 7,371 — — 460,616 7,371 Total investment securities available for sale $ 523,718 $ 7,889 $ — $ — $ 523,718 $ 7,889 Less than 12 Months 12 Months or Longer Total Fair Gross Fair Gross Fair Gross Investment securities available for sale at December 31, 2020 State and municipal $ 5,368 $ 246 $ — $ — $ 5,368 $ 246 U.S. Government-sponsored mortgage-backed securities 9,651 103 — — 9,651 103 Total investment securities available for sale $ 15,019 $ 349 $ — $ — $ 15,019 $ 349 Certain investment securities available for sale are reported in the financial statements at an amount less than their historical cost as indicated in the table below. June 30, 2021 December 31, 2020 Investments available for sale reported at less than historical cost: Historical cost $ 531,607 $ 15,368 Fair value 523,718 15,019 Gross unrealized losses $ 7,889 $ 349 Percent of the Corporation's investments available for sale 21.6 % 0.8 % In determining the fair value of the investment securities portfolio, the Corporation utilizes a third party for portfolio accounting services, including market value input, for those securities classified as Level 1 and Level 2 in the fair value hierarchy. The Corporation has obtained an understanding of what inputs are being used by the vendor in pricing the portfolio and how the vendor classified these securities based upon these inputs. From these discussions, the Corporation’s management is comfortable that the classifications are proper. The Corporation has gained trust in the data for two reasons: (a) independent spot testing of the data is conducted by the Corporation through obtaining market quotes from various brokers on a periodic basis; and (b) actual gains or loss resulting from the sale of certain securities has proven the data to be accurate over time. Fair value of securities classified as Level 3 in the valuation hierarchy was determined using a discounted cash flow model that incorporated market estimates of interest rates and volatility in markets that have not been active. U.S. Government-Sponsored Mortgage-Backed Securities The unrealized losses on the Corporation's investment in mortgage-backed securities were a result of interest rate changes. The Corporation expects to recover the amortized cost basis over the term of the securities. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be maturity. At June 30, 2021, the mortgage-backed securities portfolio contains unrealized losses of $7.4 million on forty-five securities in the available for sale portfolio. All these securities are issued by a government-sponsored entity. State and Municipal Securities, U.S. Government-Sponsored Agency Securities and Corporate Obligation Securities The unrealized losses on the Corporation's investments in securities of state and political subdivisions, U.S. Government-Sponsored Agency securities and corporate obligations were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be maturity. At June 30, 2021, the state and municipal securities portfolio contains unrealized losses of $518,000 on fifty-one securities in the available for sale portfolio. The amortized cost and fair value of investment securities available for sale and held to maturity at June 30, 2021 and December 31, 2020, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity are shown separately. Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at June 30, 2021 Due in one year or less $ 1,060 $ 1,067 $ 8,405 $ 8,461 Due after one through five years 8,850 9,176 23,079 24,351 Due after five through ten years 90,059 95,333 147,663 152,770 Due after ten years 1,281,775 1,363,038 746,456 769,606 1,381,744 1,468,614 925,603 955,188 U.S. Government-sponsored mortgage-backed securities 952,720 958,286 796,056 805,659 Total investment securities $ 2,334,464 $ 2,426,900 $ 1,721,659 $ 1,760,847 Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at December 31, 2020 Due in one year or less $ 1,349 $ 1,353 $ 9,712 $ 9,755 Due after one through five years 5,545 5,764 22,241 23,190 Due after five through ten years 70,777 75,223 115,408 121,333 Due after ten years 1,097,451 1,182,110 505,153 533,079 1,175,122 1,264,450 652,514 687,357 U.S. Government-sponsored mortgage-backed securities 632,267 654,669 575,154 592,936 Total investment securities $ 1,807,389 $ 1,919,119 $ 1,227,668 $ 1,280,293 Securities with a carrying value of approximately $877.1 million and $890.0 million were pledged at June 30, 2021 and December 31, 2020, respectively, to secure certain deposits and securities sold under repurchase agreements, and for other purposes as permitted or required by law. The book value of securities sold under agreements to repurchase amounted to $139.3 million at June 30, 2021 and $167.3 million at December 31, 2020. Gross gains on the sales and redemptions of investment securities available for sale for the three and six months ended June 30, 2021 and 2020 are shown below. Three Months Ended Six Months Ended 2021 2020 2021 2020 Sales and redemptions of investment securities available for sale: Gross gains $ 1,822 $ 3,068 $ 3,898 $ 7,680 Gross losses 61 — 338 — Net gains on sales and redemptions of investment securities available for sale $ 1,761 $ 3,068 $ 3,560 $ 7,680 |
Loans and Allowance
Loans and Allowance | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Loans and Allowance | 90 Days or More Past Due Commercial and industrial loans $ 2,658,952 $ 6,336 $ 4,590 $ 1,198 $ 2,671,076 $ — Agricultural land, production and other loans to farmers 234,432 — — 588 235,020 — Real estate loans: Construction 491,200 — — — 491,200 — Commercial real estate, non-owner occupied 2,221,577 39 5,364 36,517 2,263,497 — Commercial real estate, owner occupied 949,949 2,127 — 1,425 953,501 — Residential 1,121,721 2,276 347 3,098 1,127,442 183 Home equity 487,075 832 1,125 965 489,997 — Individuals' loans for household and other personal expenditures 129,214 1,397 208 — 130,819 — Public finance and other commercial loans 758,698 — — — 758,698 — Loans $ 9,052,818 $ 13,007 $ 11,634 $ 43,791 $ 9,121,250 $ 183 December 31, 2020 Current 30-59 Days 60-89 Days 90 Days or More Past Due Total Loans > 90 Days or More Past Due Commercial and industrial loans $ 2,761,473 $ 5,866 $ 6,571 $ 2,789 $ 2,776,699 $ 594 Agricultural land, production and other loans to farmers 280,615 146 226 897 281,884 — Real estate loans: Construction 484,706 — 17 — 484,723 — Commercial real estate, non-owner occupied 2,184,681 2,525 2,109 31,634 2,220,949 — Commercial real estate, owner occupied 951,561 4,854 180 1,906 958,501 — Residential 1,226,779 3,269 1,429 3,264 1,234,741 133 Home equity 503,596 2,644 559 1,460 508,259 19 Individuals' loans for household and other personal expenditures 129,049 334 96 — 129,479 — Public finance and other commercial loans 647,939 — — — 647,939 — Loans $ 9,170,399 $ 19,638 $ 11,187 $ 41,950 $ 9,243,174 $ 746 Loans are reclassified to a non-accruing status when, in management’s judgment, the collateral value and financial condition of the borrower do not justify accruing interest. All unpaid accrued interest is reversed against earnings when considered uncollectible and at the time accrual is discontinued. Payments subsequently received on non-accrual loans are applied to principal. A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable, typically after a minimum of six consecutive months of performance. The following table summarizes the Corporation’s non-accrual loans by loan class for the periods indicated: June 30, 2021 December 31, 2020 Non-Accrual Loans Non-Accrual Loans with no Allowance for Credit Losses Non-Accrual Loans Commercial and industrial loans $ 1,467 $ 781 $ 2,329 Agricultural land, production and other loans to farmers 682 562 1,012 Real estate loans: Construction 1 — 123 Commercial real estate, non-owner occupied 45,437 28,179 46,316 Commercial real estate, owner occupied 2,133 926 3,040 Residential 5,552 816 6,517 Home equity 2,248 — 2,095 Individuals' loans for household and other personal expenditures 36 — 39 Loans $ 57,556 $ 31,264 $ 61,471 There was no interest income recognized on non-accrual loans for the three and six months ended June 30, 2021 and 2020, respectively. Determining fair value for collateral dependent loans requires obtaining a current independent appraisal of the collateral and applying a discount factor, which includes selling costs if applicable, to the value. The fair value of real estate is generally based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses: June 30, 2021 Commercial Real Estate Residential Real Estate Other Total Allowance on Collateral Dependent Loans Commercial and industrial loans $ — $ — $ 2,106 $ 2,106 $ 727 Agricultural land, production and other loans to farmers 562 — 300 862 117 Real estate loans: Commercial real estate, non-owner occupied 47,834 — — 47,834 4,943 Commercial real estate, owner occupied 2,942 — — 2,942 238 Residential — 2,981 — 2,981 334 Home equity — 408 — 408 67 Individuals' loans for household and other personal expenditures — — 1 1 — Loans $ 51,338 $ 3,389 $ 2,407 $ 57,134 $ 6,426 As detailed in NOTE 1. GENERAL of these Notes to Consolidated Condensed Financial Statements, the Bank's banking regulators issued guidance in March 2020 encouraging financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of COVID-19. Additionally, Section 4013 of the CARES Act had further provided that a qualified loan modification is exempt by law from classification as a troubled debt restructure as defined by GAAP, from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak under the National Emergencies Act (50 U.S.C. 1601 et seq.) terminates. In accordance with that guidance, the Bank has offered short-term modifications made in response to COVID-19 to borrowers who were current and otherwise not past due. These included short-term, 180 days or less, modifications in the form of payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. The Consolidated Appropriations Act, 2021 extended the expiration date for COVID-related loan modifications exempt from troubled debt restructuring classification until the earlier of January 1, 2022, or 60 days after the termination of the national emergency. Details of the Corporation's modifications are included in the "LOAN QUALITY" section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this Form 10-Q. In certain loan restructuring situations, the Corporation may grant a concession to a debtor experiencing financial difficulty, resulting in a troubled debt restructuring. A concession is deemed to be granted when, as a result of the restructuring, the Corporation does not expect to collect all original amounts due, including interest accrued at the original contract rate. If the payment of principal at original maturity is primarily dependent on the value of collateral, the current value of the collateral is considered in determining whether the principal will be repaid. The following tables summarize troubled debt restructures in the Corporation's loan portfolio that occurred during the three months and six months ended June 30, 2021 and 2020, respectively. Three Months Ended June 30, 2021 Pre- Modification Recorded Balance Term Modification Combination Post - Modification Recorded Balance Number of Loans Real estate loans: Commercial real estate, owner occupied $ 21 $ — $ 21 $ 21 1 Residential 66 66 — 66 2 Total $ 87 $ 66 $ 21 $ 87 3 Three Months Ended June 30, 2020 Pre- Modification Recorded Balance Term Modification Rate Modification Combination Post - Modification Recorded Balance Number of Loans Commercial and industrial loans $ 654 $ 654 $ — $ — $ 654 3 Agricultural land, production and other loans to farmers 458 458 — — 458 1 Real estate loans: Commercial real estate, owner occupied 107 107 — — 107 1 Residential 300 — 112 225 337 6 Total $ 1,519 $ 1,219 $ 112 $ 225 $ 1,556 11 Six Months Ended June 30, 2021 Pre- Modification Recorded Balance Term Modification Rate Modification Combination Post - Modification Recorded Balance Number of Loans Commercial and industrial loans $ 348 $ 348 $ — $ — $ 348 2 Real estate loans: Commercial real estate, owner occupied 21 — — 21 21 1 Residential 691 449 126 118 693 9 Total $ 1,060 $ 797 $ 126 $ 139 $ 1,062 12 Six Months Ended June 30, 2020 Pre- Modification Recorded Balance Term Modification Rate Modification Combination Post - Modification Recorded Balance Number of Loans Commercial and industrial loans $ 654 $ 654 $ — $ — $ 654 3 Agricultural land, production and other loans to farmers 458 458 — — 458 1 Real estate loans: Commercial real estate, owner occupied 107 107 — — 107 1 Residential 300 — 112 225 337 6 Total $ 1,519 $ 1,219 $ 112 $ 225 $ 1,556 11 Loans secured by 1- 4 family residential real estate made up 76 percent of the post-modification balances of the troubled debt restructured loans that occurred during the three months ending June 30, 2021 and 65 percent for the six months ending June 30, 2021. The following tables summarize troubled debt restructures that occurred during the twelve months ended June 30, 2021 and 2020, that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this schedule, a loan is considered in default if it is 30-days or more past due. Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Number of Loans Recorded Balance Number of Loans Recorded Balance Commercial and industrial loans 2 $ 163 2 $ 163 Real estate loans: Residential 2 195 2 195 Total 4 $ 358 4 $ 358 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Number of Loans Recorded Balance Number of Loans Recorded Balance Commercial and industrial loans 1 $ 268 1 $ 268 Total 1 $ 268 1 $ 268 Commercial troubled debt restructured loans risk graded special mention, substandard, doubtful and loss are individually evaluated for apparent loss and may result in a specific reserve allocation in the allowance for credit loss. Commercial troubled debt restructures that aren't individually evaluated for a specific reserve are included in the calculation of allowance for credit losses through the loan segment loss analysis. For all consumer loan modifications, an evaluation to identify if a troubled debt restructure has occurred is performed prior to making the modification. Any subsequent deterioration is addressed through the charge-off process or through a specific reserve allocation included in the allowance for credit loss. Consumer troubled debt restructures that are not individually evaluated for a specific reserve are included in the calculation of the allowance for credit losses through the loan segment loss analysis. Consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $3.2 million and $492,000 at June 30, 2021 and June 30, 2020, respectively. Allowance for Credit Losses on Loans The Allowance for Credit Losses on Loans ("ACL - Loans") is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on loans over the contractual term. The ACL - Loans is adjusted by the provision for credit losses, which is reported in earnings, and reduced by charge offs for loans, net or recoveries. Provision for credit losses on loans reflects the totality of actions taken on all loans for a particular period including any necessary increases or decreases in the allowance related to changes in credit loss expectations associated with specific loans or pools of loans. Loans are charged off against the allowance when the uncollectibility of the loan is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. The allowance represents the Corporation’s best estimate of current expected credit losses on loans using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. The current expected credit loss ("CECL") calculation is performed and evaluated quarterly and losses are estimated over the expected life of the loan. The level of the allowance for credit losses is believed to be adequate to absorb all expected future losses inherent in the loan portfolio at the measurement date. In calculating the allowance for credit losses, the loan portfolio was pooled into ten loan segments with similar risk characteristics. Common characteristics include the type or purpose of the loan, underlying collateral and historical/expected credit loss patterns. In developing the loan segments, the Corporation analyzed the degree of correlation in how loans within each portfolio respond when subjected to varying economic conditions and scenarios as well as other portfolio stress factors. The expected credit losses are measured over the life of each loan segment utilizing the Probability of Default / Loss Given Default methodology combined with economic forecast models to estimate the current expected credit loss inherent in the loan portfolio. This approach is also leveraged to estimate the expected credit losses associated with unfunded loan commitments incorporating expected utilization rates. The Corporation sub-segmented certain commercial portfolios by risk level and certain consumer portfolios by delinquency status where appropriate. The Corporation utilized a four-quarter reasonable and supportable economic forecast period followed by a six-quarter, straight-line reversion period to the historical macroeconomic mean for the remaining life of the loans. Econometric modeling was performed using historical default rates and a selection of economic forecast scenarios published by Moody’s to develop a range of estimated credit losses for which to determine the best credit loss estimate within. Macroeconomic factors utilized in the modeling process include the national unemployment rate, BBB US corporate index, CRE price index and the home price index. The Corporation qualitatively adjusts model results for risk factors that are not inherently considered in the quantitative modeling process, but are nonetheless relevant in assessing the expected credit losses within the loan portfolio. These adjustments may increase or decrease the estimate of expected credit losses based upon the assessed level of risk for each qualitative factor. The various risks that may be considered in making qualitative adjustments include, among other things, the impact of (i) changes in the nature and volume of the loan portfolio, (ii) changes in the existence, growth and effect of any concentrations in credit, (iii) changes in lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries, (iv) changes in the quality of the credit review function, (v) changes in the experience, ability and depth of lending management and staff, and (vi) other environmental factors such as regulatory, legal and technological considerations, as well as competition. In some cases, management may determine that an individual loan exhibits unique risk characteristics which differentiate the loan from other loans within the loan segments. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific reserve allocations of the allowance for credit losses are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other things. A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In such cases, expected credit losses are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. The fair value of collateral supporting collateral dependent loans is evaluated on a quarterly basis. No allowance for credit losses has been recognized for PPP loans as such loans are fully guaranteed by the Small Business Administration ("SBA"). The risk characteristics of the Corporation’s portfolio segments are as follows: Commercial Commercial lending is primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the tangible assets being financed such as equipment or real estate or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. Other loans may be unsecured, secured but under-collateralized or otherwise made on the basis of the enterprise value of an organization. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial real estate Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. The Corporation monitors commercial real estate loans based on collateral and risk grade criteria, as well as the levels of owner-occupied versus non-owner occupied loans. Construction Construction loans are underwritten utilizing a combination of tools and techniques including feasibility and market studies, independent appraisals and appraisal reviews, absorption and interest rate sensitivity analysis as well as the financial analysis of the developer and all guarantors. Construction loans are monitored by either in house or third party inspectors limiting advances to a percentage of costs or stabilized project value. These loans frequently involve the disbursement of significant funds with the repayment dependent upon the successful completion and, where necessary, the future stabilization of the project. The predominant inherent risk of this portfolio is associated with the borrower's ability to successfully complete a project on time, within budget and stabilize the projected as originally projected. Consumer and Residential With respect to residential loans that are secured by 1-4 family residences, which are typically owner occupied, the Corporation generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans, such as small installment loans and certain lines of credit, are unsecured. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can also be impacted by changes in property values. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. The following tables summarize changes in the allowance for credit losses by loan segment for the three and six months ended June 30, 2021: Three Months Ended June 30, 2021 Commercial Commercial Real Estate Construction Consumer & Residential Total Allowance for credit losses Balances, March 31, 2021 $ 65,722 $ 70,861 $ 20,182 $ 44,317 $ 201,082 Provision for credit losses (1,898) 2,842 (3,106) 2,162 — Recoveries on loans 152 33 1 226 412 Loans charged off (295) (1,035) — (389) (1,719) Balances, June 30, 2021 $ 63,681 $ 72,701 $ 17,077 $ 46,316 $ 199,775 Six Months Ended June 30, 2021 Commercial Commercial Real Estate Construction Consumer Residential Consumer & Residential Total Allowance for credit losses Balances, December 31, 2020 $ 47,115 $ 51,070 $ — $ 9,648 $ 22,815 $ — $ 130,648 Credit risk reclassifications — (10,284) 10,284 (9,648) (22,815) 32,463 — Balances, December 31, 2020 after reclassifications 47,115 40,786 10,284 — — 32,463 130,648 Impact of adopting ASC 326 20,024 34,925 8,805 — — 10,301 74,055 Balances, January 1, 2021 Post-ASC 326 adoption 67,139 75,711 19,089 — — 42,764 204,703 Provision for credit losses (2,830) 1,141 (2,011) — — 3,700 — Recoveries on loans 340 197 1 — — 568 1,106 Loans charged off (968) (4,348) (2) — — (716) (6,034) Balances, June 30, 2021 $ 63,681 $ 72,701 $ 17,077 $ — $ — $ 46,316 $ 199,775 Allowance for Loan Losses under prior GAAP ("Incurred Loss Model") Prior to the adoption of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments on January 1, 2021, the Corporation maintained an allowance for loan losses in accordance with the incurred loss model as disclosed in the Corporation's 2020 Annual Report on Form 10-K. The following tables summarize changes in the allowance for loan losses by loan segment for the three and six months ended June 30, 2020: Three Months Ended June 30, 2020 Commercial Commercial Consumer Residential Total Allowance for loan losses: Balances, March 31, 2020 $ 38,431 $ 37,907 $ 5,752 $ 17,364 $ 99,454 Provision for losses 6,240 8,945 2,783 3,927 21,895 Recoveries on loans 106 107 56 48 317 Loans charged off (99) (41) (146) (261) (547) Balances, June 30, 2020 $ 44,678 $ 46,918 $ 8,445 $ 21,078 $ 121,119 Six Months Ended June 30, 2020 Commercial Commercial Consumer Residential Total Allowance for loan losses: Balances, December 31, 2019 $ 32,902 $ 28,778 $ 4,035 $ 14,569 $ 80,284 Provision for losses 11,941 18,139 4,707 6,860 41,647 Recoveries on loans 549 225 98 118 990 Loans charged off (714) (224) (395) (469) (1,802) Balances, June 30, 2020 $ 44,678 $ 46,918 $ 8,445 $ 21,078 $ 121,119 The table below shows the Corporation’s allowance for loan losses under the incurred loss model and loan portfolio by loan segment as of December 31, 2020. December 31, 2020 Commercial Commercial Consumer Residential Total Allowance Balances: Individually evaluated for impairment $ 223 $ 12,246 $ — $ 432 $ 12,901 Collectively evaluated for impairment 46,892 38,824 9,648 22,383 117,747 Total Allowance for Loan Losses $ 47,115 $ 51,070 $ 9,648 $ 22,815 $ 130,648 Loan Balances: Individually evaluated for impairment $ 1,258 $ 51,605 $ 2 $ 3,291 $ 56,156 Collectively evaluated for impairment 3,505,863 3,805,808 129,477 1,739,709 9,180,857 Loans acquired with deteriorated credit quality 577 5,584 — — 6,161 Loans $ 3,507,698 $ 3,862,997 $ 129,479 $ 1,743,000 $ 9,243,174 The following tables show the composition of the Corporation’s impaired loans, related allowance under the incur" id="sjs-B4">LOANS AND ALLOWANCE Loan Portfolio and Credit Quality The Corporation's primary lending focus is small business and middle market commercial, commercial real estate and residential real estate, which results in portfolio diversification. The following tables show the composition of the loan portfolio and credit quality characteristics by collateral classification, excluding loans held for sale. Loans held for sale at June 30, 2021 and December 31, 2020, were $18.6 million and $4.0 million, respectively. The following table illustrates the composition of the Corporation’s loan portfolio by loan class for the periods indicated: June 30, 2021 December 31, 2020 Commercial and industrial loans $ 2,671,076 $ 2,776,699 Agricultural land, production and other loans to farmers 235,020 281,884 Real estate loans: Construction 491,200 484,723 Commercial real estate, non-owner occupied 2,263,497 2,220,949 Commercial real estate, owner occupied 953,501 958,501 Residential 1,127,442 1,234,741 Home equity 489,997 508,259 Individuals' loans for household and other personal expenditures 130,819 129,479 Public finance and other commercial loans 758,698 647,939 Loans $ 9,121,250 $ 9,243,174 As of June 30, 2021, the Corporation had $415.8 million of Paycheck Protection Program ("PPP") loans compared to the December 31, 2020 balance of $667.1 million. PPP loans are included in the commercial and industrial loan class. Additional details of the PPP are included in The CARES Act and the Paycheck Protection Program sections of the "COVID-19 UPDATE" in the Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this Form 10-Q. Credit Quality As part of the ongoing monitoring of the credit quality of the Corporation's loan portfolio, management tracks certain credit quality indicators including trends related to: (i) the level of criticized commercial loans, (ii) net charge-offs, (iii) non-performing loans, (iv) covenant failures and (v) the general national and local economic conditions. The Corporation utilizes a risk grading of pass, special mention, substandard, doubtful and loss to assess the overall credit quality of large commercial loans. All large commercial credit grades are reviewed at a minimum of once a year for pass grade loans. Loans with grades below pass are reviewed more frequently depending on the grade. A description of the general characteristics of these grades is as follows: • Pass - Loans that are considered to be of acceptable credit quality. • Special Mention - Loans which possess some credit deficiency or potential weakness, which deserves close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Corporation's credit position at some future date. Special mention assets are not adversely classified and do not expose the Corporation to sufficient risk to warrant adverse classification. • Substandard - A substandard loan is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. • Doubtful - Loans that have all of the weaknesses of those classified as Substandard. However, based on currently existing facts, conditions and values, these weaknesses make full collection of principal highly questionable and improbable. • Loss – Loans that are considered uncollectible and of such little value that continuing to carry them as an asset is not warranted. Loans will be classified as Loss when it is neither practical or desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future. The following tables summarize the risk grading of the Corporation’s loan portfolio by loan class and by year of origination for the years indicated. Consumer loans are not risk graded. For the purposes of this disclosure, the consumer loans are classified in the following manner: loans that are less than 30 days past due are Pass, loans 30-89 days past due are Special Mention and loans greater than 89 days past due are Substandard. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Loans that evidenced deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected are included in the applicable categories below. Commercial and industrial loan balances as of June 30, 2021 with an origination year of 2021 and 2020 include PPP loans of $302.0 million and $113.8 million, respectively. Term Loans (amortized cost basis by origination year) 2021 2020 2019 2018 2017 Prior Revolving loans amortized cost basis Revolving loans converted to term Total Commercial and industrial loans Pass $ 705,017 $ 680,616 $ 220,134 $ 88,941 $ 35,001 $ 61,402 $ 764,492 $ — $ 2,555,603 Special Mention 8,826 31,372 963 1,214 2,315 2,299 17,494 — 64,483 Substandard 2,496 3,140 6,148 647 345 861 37,353 — 50,990 Total Commercial and industrial loans $ 716,339 $ 715,128 $ 227,245 $ 90,802 $ 37,661 $ 64,562 $ 819,339 $ — $ 2,671,076 Agricultural land, production and other loans to farmers Pass 29,307 53,177 24,414 10,441 7,291 43,426 50,668 — 218,724 Special Mention 132 1,561 186 480 — 392 1,572 — 4,323 Substandard 719 1,893 137 1,732 402 3,479 3,611 — 11,973 Total Agricultural land, production and other loans to farmers $ 30,158 $ 56,631 $ 24,737 $ 12,653 $ 7,693 $ 47,297 $ 55,851 $ — $ 235,020 Real estate loans: Construction Pass 87,073 190,362 140,397 49,429 3,031 2,788 17,622 490,702 Special Mention — 367 — — — — 40 — 407 Substandard — 28 — 62 — 1 — — 91 Total Construction $ 87,073 $ 190,757 $ 140,397 $ 49,491 $ 3,031 $ 2,789 $ 17,662 $ — $ 491,200 Commercial real estate, non-owner occupied Pass 320,351 829,716 276,030 181,489 134,569 177,499 28,768 — 1,948,422 Special Mention 53,576 161,095 — 10,333 — 10,098 1,250 — 236,352 Substandard 5,997 39,117 23,676 2,130 7,503 300 — — 78,723 Total Commercial real estate, non-owner occupied $ 379,924 $ 1,029,928 $ 299,706 $ 193,952 $ 142,072 $ 187,897 $ 30,018 $ — $ 2,263,497 Commercial real estate, owner occupied Pass 154,390 444,147 110,496 48,809 53,093 75,210 35,589 — 921,734 Special Mention 562 5,813 2,570 1,626 2,208 1,748 157 — 14,684 Substandard 954 11,567 — 53 2,734 1,775 — — 17,083 Total Commercial real estate, owner occupied $ 155,906 $ 461,527 $ 113,066 $ 50,488 $ 58,035 $ 78,733 $ 35,746 $ — $ 953,501 Residential Pass 162,624 411,016 124,377 86,116 67,041 258,010 3,919 34 1,113,137 Special Mention 282 1,322 219 657 60 1,152 — — 3,692 Substandard 1,434 3,248 107 1,392 203 4,140 89 — 10,613 Total Residential $ 164,340 $ 415,586 $ 124,703 $ 88,165 $ 67,304 $ 263,302 $ 4,008 $ 34 $ 1,127,442 Home equity Pass 24,144 20,741 2,313 2,530 1,605 4,689 430,070 171 486,263 Special Mention — — — 9 — 59 1,888 — 1,956 Substandard 488 — — 10 98 178 1,004 — 1,778 Total Home Equity $ 24,632 $ 20,741 $ 2,313 $ 2,549 $ 1,703 $ 4,926 $ 432,962 $ 171 $ 489,997 Individuals' loans for household and other personal expenditures Pass 31,102 34,212 20,548 15,707 3,433 6,358 17,855 — 129,215 Special Mention 5 223 188 40 16 25 1,107 — 1,604 Substandard — — — — — — — — — Total Individuals' loans for household and other personal expenditures $ 31,107 $ 34,435 $ 20,736 $ 15,747 $ 3,449 $ 6,383 $ 18,962 $ — $ 130,819 Public finance and other commercial loans Pass 172,554 189,090 101,518 39,675 108,677 133,286 13,898 — 758,698 Total Public finance and other commercial loans $ 172,554 $ 189,090 $ 101,518 $ 39,675 $ 108,677 $ 133,286 $ 13,898 $ — $ 758,698 Loans $ 1,762,033 $ 3,113,823 $ 1,054,421 $ 543,522 $ 429,625 $ 789,175 $ 1,428,446 $ 205 $ 9,121,250 December 31, 2020 Commercial Commercial Commercial Substandard Commercial Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 2,562,077 $ 117,503 $ 97,119 $ — $ — $ — $ — $ 2,776,699 Agricultural land, production and other loans to farmers 243,991 26,835 9,885 — — 1,173 — 281,884 Real estate Loans: Construction 446,846 10,445 5,549 — — 21,763 120 484,723 Commercial real estate, non-owner occupied 1,979,827 160,304 80,818 — — — — 2,220,949 Commercial real estate, owner occupied 907,566 17,641 33,294 — — 958,501 Residential 199,338 2,261 7,058 — — 1,020,687 5,397 1,234,741 Home equity 12,714 — 989 — — 492,999 1,557 508,259 Individuals' loans for household and other personal expenditures — — — — — 129,440 39 129,479 Public finance and other commercial loans 647,939 — — — — — — 647,939 Loans $ 7,000,298 $ 334,989 $ 234,712 $ — $ — $ 1,666,062 $ 7,113 $ 9,243,174 Total past due loans equaled $68.4 million as of June 30, 2021, a $4.4 million decrease from the total of $72.8 million for December 31, 2020. At June 30, 2021, 30-59 Days Past Due loans totaled $13.0 million, a decrease of $6.6 million from December 31, 2020. The primary decreases were in commercial real estate, both non-owner occupied and owner occupied segments, and in home equity loans. The overall balances in the 60-89 and 90 plus Days Past Due categories remained relatively level with the December 31, 2020 balances. The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, for the years indicated: June 30, 2021 Current 30-59 Days 60-89 Days 90 Days or More Past Due Total Loans > 90 Days or More Past Due Commercial and industrial loans $ 2,658,952 $ 6,336 $ 4,590 $ 1,198 $ 2,671,076 $ — Agricultural land, production and other loans to farmers 234,432 — — 588 235,020 — Real estate loans: Construction 491,200 — — — 491,200 — Commercial real estate, non-owner occupied 2,221,577 39 5,364 36,517 2,263,497 — Commercial real estate, owner occupied 949,949 2,127 — 1,425 953,501 — Residential 1,121,721 2,276 347 3,098 1,127,442 183 Home equity 487,075 832 1,125 965 489,997 — Individuals' loans for household and other personal expenditures 129,214 1,397 208 — 130,819 — Public finance and other commercial loans 758,698 — — — 758,698 — Loans $ 9,052,818 $ 13,007 $ 11,634 $ 43,791 $ 9,121,250 $ 183 December 31, 2020 Current 30-59 Days 60-89 Days 90 Days or More Past Due Total Loans > 90 Days or More Past Due Commercial and industrial loans $ 2,761,473 $ 5,866 $ 6,571 $ 2,789 $ 2,776,699 $ 594 Agricultural land, production and other loans to farmers 280,615 146 226 897 281,884 — Real estate loans: Construction 484,706 — 17 — 484,723 — Commercial real estate, non-owner occupied 2,184,681 2,525 2,109 31,634 2,220,949 — Commercial real estate, owner occupied 951,561 4,854 180 1,906 958,501 — Residential 1,226,779 3,269 1,429 3,264 1,234,741 133 Home equity 503,596 2,644 559 1,460 508,259 19 Individuals' loans for household and other personal expenditures 129,049 334 96 — 129,479 — Public finance and other commercial loans 647,939 — — — 647,939 — Loans $ 9,170,399 $ 19,638 $ 11,187 $ 41,950 $ 9,243,174 $ 746 Loans are reclassified to a non-accruing status when, in management’s judgment, the collateral value and financial condition of the borrower do not justify accruing interest. All unpaid accrued interest is reversed against earnings when considered uncollectible and at the time accrual is discontinued. Payments subsequently received on non-accrual loans are applied to principal. A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable, typically after a minimum of six consecutive months of performance. The following table summarizes the Corporation’s non-accrual loans by loan class for the periods indicated: June 30, 2021 December 31, 2020 Non-Accrual Loans Non-Accrual Loans with no Allowance for Credit Losses Non-Accrual Loans Commercial and industrial loans $ 1,467 $ 781 $ 2,329 Agricultural land, production and other loans to farmers 682 562 1,012 Real estate loans: Construction 1 — 123 Commercial real estate, non-owner occupied 45,437 28,179 46,316 Commercial real estate, owner occupied 2,133 926 3,040 Residential 5,552 816 6,517 Home equity 2,248 — 2,095 Individuals' loans for household and other personal expenditures 36 — 39 Loans $ 57,556 $ 31,264 $ 61,471 There was no interest income recognized on non-accrual loans for the three and six months ended June 30, 2021 and 2020, respectively. Determining fair value for collateral dependent loans requires obtaining a current independent appraisal of the collateral and applying a discount factor, which includes selling costs if applicable, to the value. The fair value of real estate is generally based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses: June 30, 2021 Commercial Real Estate Residential Real Estate Other Total Allowance on Collateral Dependent Loans Commercial and industrial loans $ — $ — $ 2,106 $ 2,106 $ 727 Agricultural land, production and other loans to farmers 562 — 300 862 117 Real estate loans: Commercial real estate, non-owner occupied 47,834 — — 47,834 4,943 Commercial real estate, owner occupied 2,942 — — 2,942 238 Residential — 2,981 — 2,981 334 Home equity — 408 — 408 67 Individuals' loans for household and other personal expenditures — — 1 1 — Loans $ 51,338 $ 3,389 $ 2,407 $ 57,134 $ 6,426 As detailed in NOTE 1. GENERAL of these Notes to Consolidated Condensed Financial Statements, the Bank's banking regulators issued guidance in March 2020 encouraging financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of COVID-19. Additionally, Section 4013 of the CARES Act had further provided that a qualified loan modification is exempt by law from classification as a troubled debt restructure as defined by GAAP, from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak under the National Emergencies Act (50 U.S.C. 1601 et seq.) terminates. In accordance with that guidance, the Bank has offered short-term modifications made in response to COVID-19 to borrowers who were current and otherwise not past due. These included short-term, 180 days or less, modifications in the form of payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. The Consolidated Appropriations Act, 2021 extended the expiration date for COVID-related loan modifications exempt from troubled debt restructuring classification until the earlier of January 1, 2022, or 60 days after the termination of the national emergency. Details of the Corporation's modifications are included in the "LOAN QUALITY" section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this Form 10-Q. In certain loan restructuring situations, the Corporation may grant a concession to a debtor experiencing financial difficulty, resulting in a troubled debt restructuring. A concession is deemed to be granted when, as a result of the restructuring, the Corporation does not expect to collect all original amounts due, including interest accrued at the original contract rate. If the payment of principal at original maturity is primarily dependent on the value of collateral, the current value of the collateral is considered in determining whether the principal will be repaid. The following tables summarize troubled debt restructures in the Corporation's loan portfolio that occurred during the three months and six months ended June 30, 2021 and 2020, respectively. Three Months Ended June 30, 2021 Pre- Modification Recorded Balance Term Modification Combination Post - Modification Recorded Balance Number of Loans Real estate loans: Commercial real estate, owner occupied $ 21 $ — $ 21 $ 21 1 Residential 66 66 — 66 2 Total $ 87 $ 66 $ 21 $ 87 3 Three Months Ended June 30, 2020 Pre- Modification Recorded Balance Term Modification Rate Modification Combination Post - Modification Recorded Balance Number of Loans Commercial and industrial loans $ 654 $ 654 $ — $ — $ 654 3 Agricultural land, production and other loans to farmers 458 458 — — 458 1 Real estate loans: Commercial real estate, owner occupied 107 107 — — 107 1 Residential 300 — 112 225 337 6 Total $ 1,519 $ 1,219 $ 112 $ 225 $ 1,556 11 Six Months Ended June 30, 2021 Pre- Modification Recorded Balance Term Modification Rate Modification Combination Post - Modification Recorded Balance Number of Loans Commercial and industrial loans $ 348 $ 348 $ — $ — $ 348 2 Real estate loans: Commercial real estate, owner occupied 21 — — 21 21 1 Residential 691 449 126 118 693 9 Total $ 1,060 $ 797 $ 126 $ 139 $ 1,062 12 Six Months Ended June 30, 2020 Pre- Modification Recorded Balance Term Modification Rate Modification Combination Post - Modification Recorded Balance Number of Loans Commercial and industrial loans $ 654 $ 654 $ — $ — $ 654 3 Agricultural land, production and other loans to farmers 458 458 — — 458 1 Real estate loans: Commercial real estate, owner occupied 107 107 — — 107 1 Residential 300 — 112 225 337 6 Total $ 1,519 $ 1,219 $ 112 $ 225 $ 1,556 11 Loans secured by 1- 4 family residential real estate made up 76 percent of the post-modification balances of the troubled debt restructured loans that occurred during the three months ending June 30, 2021 and 65 percent for the six months ending June 30, 2021. The following tables summarize troubled debt restructures that occurred during the twelve months ended June 30, 2021 and 2020, that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this schedule, a loan is considered in default if it is 30-days or more past due. Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Number of Loans Recorded Balance Number of Loans Recorded Balance Commercial and industrial loans 2 $ 163 2 $ 163 Real estate loans: Residential 2 195 2 195 Total 4 $ 358 4 $ 358 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Number of Loans Recorded Balance Number of Loans Recorded Balance Commercial and industrial loans 1 $ 268 1 $ 268 Total 1 $ 268 1 $ 268 Commercial troubled debt restructured loans risk graded special mention, substandard, doubtful and loss are individually evaluated for apparent loss and may result in a specific reserve allocation in the allowance for credit loss. Commercial troubled debt restructures that aren't individually evaluated for a specific reserve are included in the calculation of allowance for credit losses through the loan segment loss analysis. For all consumer loan modifications, an evaluation to identify if a troubled debt restructure has occurred is performed prior to making the modification. Any subsequent deterioration is addressed through the charge-off process or through a specific reserve allocation included in the allowance for credit loss. Consumer troubled debt restructures that are not individually evaluated for a specific reserve are included in the calculation of the allowance for credit losses through the loan segment loss analysis. Consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $3.2 million and $492,000 at June 30, 2021 and June 30, 2020, respectively. Allowance for Credit Losses on Loans The Allowance for Credit Losses on Loans ("ACL - Loans") is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on loans over the contractual term. The ACL - Loans is adjusted by the provision for credit losses, which is reported in earnings, and reduced by charge offs for loans, net or recoveries. Provision for credit losses on loans reflects the totality of actions taken on all loans for a particular period including any necessary increases or decreases in the allowance related to changes in credit loss expectations associated with specific loans or pools of loans. Loans are charged off against the allowance when the uncollectibility of the loan is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. The allowance represents the Corporation’s best estimate of current expected credit losses on loans using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. The current expected credit loss ("CECL") calculation is performed and evaluated quarterly and losses are estimated over the expected life of the loan. The level of the allowance for credit losses is believed to be adequate to absorb all expected future losses inherent in the loan portfolio at the measurement date. In calculating the allowance for credit losses, the loan portfolio was pooled into ten loan segments with similar risk characteristics. Common characteristics include the type or purpose of the loan, underlying collateral and historical/expected credit loss patterns. In developing the loan segments, the Corporation analyzed the degree of correlation in how loans within each portfolio respond when subjected to varying economic conditions and scenarios as well as other portfolio stress factors. The expected credit losses are measured over the life of each loan segment utilizing the Probability of Default / Loss Given Default methodology combined with economic forecast models to estimate the current expected credit loss inherent in the loan portfolio. This approach is also leveraged to estimate the expected credit losses associated with unfunded loan commitments incorporating expected utilization rates. The Corporation sub-segmented certain commercial portfolios by risk level and certain consumer portfolios by delinquency status where appropriate. The Corporation utilized a four-quarter reasonable and supportable economic forecast period followed by a six-quarter, straight-line reversion period to the historical macroeconomic mean for the remaining life of the loans. Econometric modeling was performed using historical default rates and a selection of economic forecast scenarios published by Moody’s to develop a range of estimated credit losses for which to determine the best credit loss estimate within. Macroeconomic factors utilized in the modeling process include the national unemployment rate, BBB US corporate index, CRE price index and the home price index. The Corporation qualitatively adjusts model results for risk factors that are not inherently considered in the quantitative modeling process, but are nonetheless relevant in assessing the expected credit losses within the loan portfolio. These adjustments may increase or decrease the estimate of expected credit losses based upon the assessed level of risk for each qualitative factor. The various risks that may be considered in making qualitative adjustments include, among other things, the impact of (i) changes in the nature and volume of the loan portfolio, (ii) changes in the existence, growth and effect of any concentrations in credit, (iii) changes in lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries, (iv) changes in the quality of the credit review function, (v) changes in the experience, ability and depth of lending management and staff, and (vi) other environmental factors such as regulatory, legal and technological considerations, as well as competition. In some cases, management may determine that an individual loan exhibits unique risk characteristics which differentiate the loan from other loans within the loan segments. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific reserve allocations of the allowance for credit losses are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other things. A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In such cases, expected credit losses are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. The fair value of collateral supporting collateral dependent loans is evaluated on a quarterly basis. No allowance for credit losses has been recognized for PPP loans as such loans are fully guaranteed by the Small Business Administration ("SBA"). The risk characteristics of the Corporation’s portfolio segments are as follows: Commercial Commercial lending is primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the tangible assets being financed such as equipment or real estate or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. Other loans may be unsecured, secured but under-collateralized or otherwise made on the basis of the enterprise value of an organization. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial real estate Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. The Corporation monitors commercial real estate loans based on collateral and risk grade criteria, as well as the levels of owner-occupied versus non-owner occupied loans. Construction Construction loans are underwritten utilizing a combination of tools and techniques including feasibility and market studies, independent appraisals and appraisal reviews, absorption and interest rate sensitivity analysis as well as the financial analysis of the developer and all guarantors. Construction loans are monitored by either in house or third party inspectors limiting advances to a percentage of costs or stabilized project value. These loans frequently involve the disbursement of significant funds with the repayment dependent upon the successful completion and, where necessary, the future stabilization of the project. The predominant inherent risk of this portfolio is associated with the borrower's ability to successfully complete a project on time, within budget and stabilize the projected as originally projected. Consumer and Residential With respect to residential loans that are secured by 1-4 family residences, which are typically owner occupied, the Corporation generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans, such as small installment loans and certain lines of credit, are unsecured. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can also be impacted by changes in property values. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. The following tables summarize changes in the allowance for credit losses by loan segment for the three and six months ended June 30, 2021: Three Months Ended June 30, 2021 Commercial Commercial Real Estate Construction Consumer & Residential Total Allowance for credit losses Balances, March 31, 2021 $ 65,722 $ 70,861 $ 20,182 $ 44,317 $ 201,082 Provision for credit losses (1,898) 2,842 (3,106) 2,162 — Recoveries on loans 152 33 1 226 412 Loans charged off (295) (1,035) — (389) (1,719) Balances, June 30, 2021 $ 63,681 $ 72,701 $ 17,077 $ 46,316 $ 199,775 Six Months Ended June 30, 2021 Commercial Commercial Real Estate Construction Consumer Residential Consumer & Residential Total Allowance for credit losses Balances, December 31, 2020 $ 47,115 $ 51,070 $ — $ 9,648 $ 22,815 $ — $ 130,648 Credit risk reclassifications — (10,284) 10,284 (9,648) (22,815) 32,463 — Balances, December 31, 2020 after reclassifications 47,115 40,786 10,284 — — 32,463 130,648 Impact of adopting ASC 326 20,024 34,925 8,805 — — 10,301 74,055 Balances, January 1, 2021 Post-ASC 326 adoption 67,139 75,711 19,089 — — 42,764 204,703 Provision for credit losses (2,830) 1,141 (2,011) — — 3,700 — Recoveries on loans 340 197 1 — — 568 1,106 Loans charged off (968) (4,348) (2) — — (716) (6,034) Balances, June 30, 2021 $ 63,681 $ 72,701 $ 17,077 $ — $ — $ 46,316 $ 199,775 Allowance for Loan Losses under prior GAAP ("Incurred Loss Model") Prior to the adoption of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments on January 1, 2021, the Corporation maintained an allowance for loan losses in accordance with the incurred loss model as disclosed in the Corporation's 2020 Annual Report on Form 10-K. The following tables summarize changes in the allowance for loan losses by loan segment for the three and six months ended June 30, 2020: Three Months Ended June 30, 2020 Commercial Commercial Consumer Residential Total Allowance for loan losses: Balances, March 31, 2020 $ 38,431 $ 37,907 $ 5,752 $ 17,364 $ 99,454 Provision for losses 6,240 8,945 2,783 3,927 21,895 Recoveries on loans 106 107 56 48 317 Loans charged off (99) (41) (146) (261) (547) Balances, June 30, 2020 $ 44,678 $ 46,918 $ 8,445 $ 21,078 $ 121,119 Six Months Ended June 30, 2020 Commercial Commercial Consumer Residential Total Allowance for loan losses: Balances, December 31, 2019 $ 32,902 $ 28,778 $ 4,035 $ 14,569 $ 80,284 Provision for losses 11,941 18,139 4,707 6,860 41,647 Recoveries on loans 549 225 98 118 990 Loans charged off (714) (224) (395) (469) (1,802) Balances, June 30, 2020 $ 44,678 $ 46,918 $ 8,445 $ 21,078 $ 121,119 The table below shows the Corporation’s allowance for loan losses under the incurred loss model and loan portfolio by loan segment as of December 31, 2020. December 31, 2020 Commercial Commercial Consumer Residential Total Allowance Balances: Individually evaluated for impairment $ 223 $ 12,246 $ — $ 432 $ 12,901 Collectively evaluated for impairment 46,892 38,824 9,648 22,383 117,747 Total Allowance for Loan Losses $ 47,115 $ 51,070 $ 9,648 $ 22,815 $ 130,648 Loan Balances: Individually evaluated for impairment $ 1,258 $ 51,605 $ 2 $ 3,291 $ 56,156 Collectively evaluated for impairment 3,505,863 3,805,808 129,477 1,739,709 9,180,857 Loans acquired with deteriorated credit quality 577 5,584 — — 6,161 Loans $ 3,507,698 $ 3,862,997 $ 129,479 $ 1,743,000 $ 9,243,174 The following tables show the composition of the Corporation’s impaired loans, related allowance under the incur |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL Goodwill is recorded on the acquisition date of an entity. The Hoosier acquisition on April, 1, 2021 resulted in $1,467,000 of goodwill. Details regarding the Hoosier acquisition are discussed in NOTE 2. ACQUISITION of these Notes to Consolidated Condensed Financial Statements. 2021 2020 Balance, January 1 $ 543,918 $ 543,918 Goodwill acquired 1,467 — Balance, June 30 $ 545,385 $ 543,918 |
Other Intangibles
Other Intangibles | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangibles | OTHER INTANGIBLES Core deposit intangibles and other intangibles are recorded on the acquisition date of an entity. The Hoosier acquisition on April 1, 2021 resulted in a customer relationship intangible of $2,247,000. Details regarding the Hoosier acquisition are discussed in NOTE 2. ACQUISITION of these Notes to Consolidated Condensed Financial Statements. The carrying basis and accumulated amortization of recognized core deposit intangibles and other intangibles are noted below. June 30, 2021 December 31, 2020 Gross carrying amount $ 102,396 $ 102,396 Other intangibles acquired 2,247 — Accumulated amortization (76,242) (73,421) Total core deposit and other intangibles $ 28,401 $ 28,975 The core deposit intangibles and other intangibles are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of ten years. Intangible asset amortization expense for the three and six months ended June 30, 2021 was $1.5 million and $2.8 million, respectively, compared to $1.5 million and $3.0 million for the three and six months ended June 30, 2020, respectively. Estimated future amortization expense is summarized as follows: Amortization Expense 2021 $ 2,927 2022 5,402 2023 5,145 2024 4,510 2025 3,754 After 2025 6,663 $ 28,401 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS Risk Management Objective of Using Derivatives The Corporation is exposed to certain risks arising from both its business operations and economic conditions. The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, the Corporation 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 Corporation’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation’s known or expected cash payments principally related to certain variable-rate liabilities. The Corporation also has derivatives that are a result of a service the Corporation provides to certain qualifying customers, and, therefore, are not used to manage interest rate risk in the Corporation’s assets or liabilities. The Corporation manages a matched book with respect to its derivative instruments offered as a part of this service to its customers in order to minimize its net risk exposure resulting from such transactions. Cash Flow Hedges of Interest Rate Risk The Corporation’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 Corporation primarily uses interest rate swaps and interest rate caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the payment of fixed amounts to a counterparty in exchange for the Corporation receiving variable payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. As of June 30, 2021 and December 31, 2020, the Corporation had four interest rate swaps with a notional amount of $60.0 million that were designated as cash flow hedges. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During 2021, $26.0 million of the interest rate swaps were used to hedge the variable cash outflows (LIBOR-based) associated with existing trust preferred securities when the outflows converted from a fixed rate to variable rate in September 2012. In addition, $10.0 million of interest rate swaps were used to hedge the variable cash outflows (LIBOR-based) associated with one Federal Home Loan Bank advances. Finally, the remaining $24.0 million of interest rate swaps were used to hedge the variable cash outflows (Ameribor-based) associated with a brokered deposit. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three and six months ended June 30, 2021 and 2020, the Corporation did not recognize any ineffectiveness. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Corporation's variable-rate liabilities. During the next twelve months, the Corporation expects to reclassify $1.0 million from accumulated other comprehensive income to interest expense. Non-designated Hedges The Corporation does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and result from a service the Corporation provides to certain customers. The Corporation executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Corporation executes with a third party, such that the Corporation minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of June 30, 2021 and December 31, 2020, the notional amount of customer-facing swaps was approximately $1.0 billion and $985.0 million, respectively. These amounts are offset with third party counterparties, as described above. Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Corporation’s derivative financial instruments, as well as their classification on the Balance Sheet, as of June 30, 2021, and December 31, 2020. Asset Derivatives Liability Derivatives June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 Balance Fair Balance Fair Balance Fair Balance Fair Derivatives designated as hedging instruments: Interest rate contracts Other Assets $ — Other Assets $ — Other Liabilities $ 1,464 Other Liabilities $ 2,018 Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 51,845 Other Assets $ 74,335 Other Liabilities $ 51,845 Other Liabilities $ 74,335 The amount of gain (loss) recognized in other comprehensive income is included in the table below for the periods indicated. Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Interest Rate Products $ (16) $ (145) $ 42 $ (1,459) Effect of Derivative Instruments on the Income Statement The Corporation did not recognize any gains or losses from derivative financial instruments in the Consolidated Condensed Statements of Income for the three and six months ended June 30, 2021 and 2020. The amount of gain (loss) reclassified from other comprehensive income into income is included in the table below for the periods indicated. Derivatives Designated as Location of Gain (Loss) Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion) Three Months Ended Three Months Ended Interest rate contracts Interest Expense $ (260) $ (231) Derivatives Designated as Location of Gain (Loss) Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion) Six Months Ended Six Months Ended Interest rate contracts Interest Expense $ (513) $ (357) The Corporation’s exposure to credit risk occurs because of nonperformance by its counterparties. The counterparties approved by the Corporation are usually financial institutions, which are well capitalized and have credit ratings through Moody’s and/or Standard & Poor’s at or above investment grade. The Corporation’s control of such risk is through quarterly financial reviews, comparing mark-to-market values with policy limitations, credit ratings and collateral pledging. Credit-risk-related Contingent Features The Corporation has agreements with certain of its derivative counterparties that contain a provision where if the Corporation fails to maintain its status as a well or adequately capitalized institution, then the Corporation could be required to terminate or fully collateralize all outstanding derivative contracts. Additionally, the Corporation has agreements with certain of its derivative counterparties that contain a provision where if the Corporation defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Corporation could also be declared in default on its derivative obligations. As of June 30, 2021, the termination value of derivatives in a net liability position related to these agreements was $47.8 million. As of June 30, 2021, the Corporation has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $62.8 million. While the Corporation did not breach any of these provisions as of June 30, 2021, if it had, the Corporation could have been required to settle its obligations under the agreements at their termination value. |
Disclosures About Fair Value of
Disclosures About Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Disclosures About Fair Value of Assets and Liabilities | DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES The Corporation used fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The accounting guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 applies only when other guidance requires or permits assets or liabilities to be measured at fair value; it does not expand the use of fair value in any new circumstances. As defined in ASC 820, fair value is the price to sell an asset or transfer a liability in an orderly transaction between market participants. It represents an exit price at the measurement date. Market participants are buyers and sellers, who are independent, knowledgeable, and willing and able to transact in the principal (or most advantageous) market for the asset or liability being measured. Current market conditions, including imbalances between supply and demand, are considered in determining fair value. The Corporation values its assets and liabilities in the principal market where it sells the particular asset or transfers the liability with the greatest volume and level of activity. In the absence of a principal market, the valuation is based on the most advantageous market for the asset or liability (i.e., the market where the asset could be sold or the liability transferred at a price that maximizes the amount to be received for the asset or minimizes the amount to be paid to transfer the liability). Valuation inputs refer to the assumptions market participants would use in pricing a given asset or liability. Inputs can be observable or unobservable. Observable inputs are those assumptions which market participants would use in pricing the particular asset or liability. These inputs are based on market data and are obtained from a source independent of the Corporation. Unobservable inputs are assumptions based on the Corporation’s own information or estimate of assumptions used by market participants in pricing the asset or liability. Unobservable inputs are based on the best and most current information available on the measurement date. All inputs, whether observable or unobservable, are ranked in accordance with a prescribed fair value hierarchy which gives the highest ranking to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest ranking to unobservable inputs for which there is little or no market activity (Level 3). Fair values for assets or liabilities classified as Level 2 are based on one or a combination of the following factors: (i) quoted prices for similar assets; (ii) observable inputs for the asset or liability, such as interest rates or yield curves; or (iii) inputs derived principally from or corroborated by observable market data. The level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation considers an input to be significant if it drives 10 percent or more of the total fair value of a particular asset or liability. RECURRING MEASUREMENTS Assets and liabilities are considered to be measured at fair value on a recurring basis if fair value is measured regularly (i.e., daily, weekly, monthly or quarterly). Recurring valuation occurs at a minimum on the measurement date. Assets and liabilities are considered to be measured at fair value on a nonrecurring basis if the fair value measurement of the instrument does not necessarily result in a change in the amount recorded on the balance sheet. Generally, nonrecurring valuation is the result of the application of other accounting pronouncements which require assets or liabilities to be assessed for impairment or recorded at the lower of cost or fair value. The fair value of assets or liabilities transferred in or out of Level 3 is measured on the transfer date, with any additional changes in fair value subsequent to the transfer considered to be realized or unrealized gains or losses. Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. Investment Securities Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. The Corporation currently has no securities classified within Level 1 of the hierarchy. Where significant observable inputs, other than Level 1 quoted prices, are available, securities are classified within Level 2 of the valuation hierarchy. Level 2 securities include U.S. treasury securities, government-sponsored agency and mortgage-backed securities, state and municipal securities and corporate obligations securities. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy and include state and municipal securities, government-sponsored mortgage-backed securities and corporate obligations securities. Level 3 fair value for securities was determined using a discounted cash flow model that incorporated market estimates of interest rates and volatility in markets that have not been active. Third party vendors compile prices from various sources and may apply such techniques as matrix pricing to determine the value of identical or similar investment securities (Level 2). Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment securities. Any investment security not valued based upon the methods above are considered Level 3. Interest Rate Derivative Agreements See information regarding the Corporation’s interest rate derivative products in NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS of these Notes to Consolidated Condensed Financial Statements. The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fall at June 30, 2021, and December 31, 2020. Fair Value Measurements Using: June 30, 2021 Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Significant Available for sale securities: U.S. Treasury $ 1,000 $ — $ 1,000 $ — U.S. Government-sponsored agency securities 11,541 — 11,541 — State and municipal 1,451,845 — 1,446,085 5,760 U.S. Government-sponsored mortgage-backed securities 958,286 — 958,282 4 Corporate obligations 4,228 — 4,197 31 Interest rate swap asset 51,845 — 51,845 — Interest rate swap liability 53,309 — 53,309 — Fair Value Measurements Using: December 31, 2020 Fair Value Quoted Prices in Significant Other Observable Inputs Significant Available for sale securities: U.S. Government-sponsored agency securities $ 2,430 $ — $ 2,430 $ — State and municipal 1,257,885 — 1,255,441 2,444 U.S. Government-sponsored mortgage-backed securities 654,669 — 654,665 4 Corporate obligations 4,135 — 4,104 31 Interest rate swap asset 74,335 — 74,335 — Interest rate swap liability 76,353 — 76,353 — There were no gains or losses included in earnings that were attributable to the changes in unrealized gains or losses related to assets or liabilities held at June 30, 2021 or December 31, 2020. Level 3 Reconciliation The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable Level 3 inputs for the three and six months ended June 30, 2021 and 2020. Available for Sale Securities Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Balance at beginning of the period $ 2,146 $ 2,528 $ 2,479 $ 2,892 Included in other comprehensive income 412 (30) 353 (50) Purchases, issuances and settlements 3,241 — 3,241 — Principal payments (4) 2 (278) (342) Ending balance $ 5,795 $ 2,500 $ 5,795 $ 2,500 Transfers Between Levels There were no transfers in or out of Level 3 for the three and six months ended June 30, 2021 and 2020. Nonrecurring Measurements Following is a description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy for June 30, 2021, and December 31, 2020. Fair Value Measurements Using June 30, 2021 Fair Value Quoted Prices in Significant Other Significant Unobservable Collateral dependent loans $ 43,292 $ — $ — $ 43,292 Other real estate owned 167 — — 167 Fair Value Measurements Using December 31, 2020 Fair Value Quoted Prices in Significant Other Significant Unobservable Impaired loans (collateral dependent) $ 37,250 $ — $ — $ 37,250 Other real estate owned 544 — — 544 Impaired Loans (collateral dependent) Loans for which it is probable that the Corporation will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment include estimating fair value of the collateral for collateral dependent loans. If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for loan losses to increase, such increase is reported as a component of the provision for loan losses. Loan losses are charged against the allowance when management believes the uncollectability of the loan is confirmed. During 2020 and 2021, certain impaired loans were partially charged off or re-evaluated. Impaired loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method. Other Real Estate Owned The fair value for impaired loans and other real estate owned is measured based on the value of the collateral securing those loans or real estate and is determined using several methods. The fair value of real estate is generally determined based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a discounted cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and/or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions. Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at June 30, 2021 and December 31, 2020. June 30, 2021 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 5,760 Discounted cash flow Maturity/Call date 1 month to 15 years US Muni BQ curve A- to BBB-- Discount rate .75% - 4% Weighted-average coupon 4 % Corporate obligations and U.S. Government-sponsored mortgage-backed securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR plus premium for illiquidity plus 200bps Weighted-average coupon —% Collateral dependent loans $ 43,292 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% Weighted-average discount by loan balance 3 % Other real estate owned $ 167 Appraisals Discount to reflect current market conditions 0% - 72% Weighted-average discount of other real estate owned balance 39% December 31, 2020 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 2,444 Discounted cash flow Maturity/Call date 1 month to 15 years US Muni BQ curve A- to BBB- Discount rate 1.50% - 4% Weighted-average coupon 4 % Corporate obligations and U.S Government-sponsored mortgage-backed securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR plus premium for illiquidity plus 200bps Weighted-average coupon —% Impaired loans (collateral dependent) $ 37,250 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% Weighted-average discount by loan balance 6% Other real estate owned $ 544 Appraisals Discount to reflect current market conditions 0% - 30% Weighted-average discount of other real estate owned balance 26% The following is a discussion of the sensitivity of significant unobservable inputs, the interrelationships between those inputs and other unobservable inputs used in recurring fair value measurement and how those inputs might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement. State and Municipal Securities, Corporate Obligations and U.S. Government-sponsored Mortgage-Backed Securities The significant unobservable inputs used in the fair value measurement of the Corporation's state and municipal securities, corporate obligations and U.S. Government-sponsored mortgage-backed securities are premiums for unrated securities and marketability discounts. Significant increases or decreases in either of those inputs in isolation would result in a significantly lower or higher fair value measurement. Generally, changes in either of those inputs will not affect the other input. Fair Value of Financial Instruments The following table presents estimated fair values of the Corporation’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2021, and December 31, 2020. June 30, 2021 Quoted Prices in Active Markets Significant Significant Unobservable Carrying Amount (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ 167,596 $ 167,596 $ — $ — Interest-bearing deposits 438,863 438,863 — — Investment securities available for sale 2,426,900 — 2,421,105 5,795 Investment securities held to maturity 1,721,414 — 1,745,282 15,565 Loans held for sale 18,582 — 18,582 — Loans, net 8,921,475 — — 8,976,919 Federal Home Loan Bank stock 28,736 — 28,736 — Interest rate swap asset 51,845 — 51,845 — Interest receivable 54,173 — 54,173 — Liabilities: Deposits $ 12,203,400 $ 11,419,155 $ 782,802 $ — Borrowings: Securities sold under repurchase agreements 146,904 — 146,900 — Federal Home Loan Bank advances 334,243 — 340,783 — Subordinated debentures and other borrowings 118,498 — 107,751 — Interest rate swap liability 53,309 — 53,309 — Interest payable 2,929 — 2,929 — December 31, 2020 Quoted Prices in Active Markets Significant Significant Unobservable Carrying Amount (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ 192,896 $ 192,896 $ — $ — Interest-bearing deposits 392,305 392,305 — — Investment securities available for sale 1,919,119 — 1,916,640 2,479 Investment securities held to maturity 1,227,668 — 1,260,815 19,478 Loans held for sale 3,966 — 3,966 — Loans, net 9,112,526 — — 9,191,628 Federal Home Loan Bank stock 28,736 — 28,736 — Interest rate swap asset 74,335 — 74,335 — Interest receivable 53,948 — 53,948 — Liabilities: Deposits $ 11,361,610 $ 10,482,865 $ 878,257 $ — Borrowings: Securities sold under repurchase agreements 177,102 — 177,097 — Federal Home Loan Bank advances 389,430 — 399,991 — Subordinated debentures and other borrowings 118,380 — 108,439 — Interest rate swap liability 76,353 — 76,353 — Interest payable 3,287 — 3,287 — |
Transfers Accounted for as Secu
Transfers Accounted for as Secured Borrowings | 6 Months Ended |
Jun. 30, 2021 | |
Transfers and Servicing [Abstract] | |
Transfers Accounted for as Secured Borrowings | TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS The collateral pledged for all repurchase agreements that are accounted for as secured borrowings as of June 30, 2021 and December 31, 2020 were: June 30, 2021 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 145,249 $ 800 $ — $ 855 $ 146,904 December 31, 2020 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 175,449 $ — $ 1,653 $ — $ 177,102 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, as of June 30, 2021 and 2020: Accumulated Other Comprehensive Income (Loss) Unrealized Gains (Losses) on Securities Available for Sale Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Defined Benefit Plans Total Balance at December 31, 2020 $ 87,988 $ (1,594) $ (11,558) $ 74,836 Other comprehensive income (loss) before reclassifications (12,382) 33 — (12,349) Amounts reclassified from accumulated other comprehensive income (2,812) 405 — (2,407) Period change (15,194) 438 — (14,756) Balance at June 30, 2021 $ 72,794 $ (1,156) $ (11,558) $ 60,080 Balance at December 31, 2019 $ 38,872 $ (1,141) $ (9,857) $ 27,874 Other comprehensive income (loss) before reclassifications 42,909 (1,153) — 41,756 Amounts reclassified from accumulated other comprehensive income (6,067) 282 — (5,785) Period change 36,842 (871) — 35,971 Balance at June 30, 2020 $ 75,714 $ (2,012) $ (9,857) $ 63,845 The following table presents the reclassification adjustments out of accumulated other comprehensive income (loss) that were included in net income in the Consolidated Condensed Statements of Income for the three and six months ended June 30, 2021 and 2020. Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Three Months Ended June 30, Details about Accumulated Other Comprehensive Income (Loss) Components 2021 2020 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains reclassified into income $ 1,761 $ 3,068 Other income - net realized gains on sales of available for sale securities Related income tax expense (370) (644) Income tax expense $ 1,391 $ 2,424 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (260) $ (231) Interest expense - subordinated debentures and term loans Related income tax benefit 55 49 Income tax expense $ (205) $ (182) Total reclassifications for the period, net of tax $ 1,186 $ 2,242 Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Six Months Ended June 30, Details about Accumulated Other Comprehensive Income (Loss) Components 2021 2020 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains reclassified into income $ 3,560 $ 7,680 Other income - net realized gains on sales of available for sale securities Related income tax expense (748) (1,613) Income tax expense $ 2,812 $ 6,067 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (513) $ (357) Interest expense - subordinated debentures and term loans Related income tax benefit 108 75 Income tax expense $ (405) $ (282) Total reclassifications for the period, net of tax $ 2,407 $ 5,785 (1) For additional detail related to unrealized gains (losses) on available for sale securities and related amounts reclassified from accumulated other comprehensive income see NOTE 3. INVESTMENT SECURITIES of these Notes to Consolidated Condensed Financial Statements. (2) For additional detail related to unrealized gains (losses) on cash flow hedges and related amounts reclassified from accumulated other comprehensive income see NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS of these Notes to Consolidated Condensed Financial Statements. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION Stock options and RSAs have been issued to directors, officers and other management employees under the Corporation's 2009 Long-term Equity Incentive Plan, the 2019 Long-term Equity Incentive Plan, and the Equity Compensation Plan for Non-Employee Directors. The stock options, which have a ten year life, become 100 percent vested based on time ranging from one year to two years and are fully exercisable when vested. Option exercise prices equal the Corporation's common stock closing price on NASDAQ on the date of grant. The RSAs issued to employees and non-employee directors provide for the issuance of shares of the Corporation's common stock at no cost to the holder and generally vest after 3 years. The RSAs vest only if the employee is actively employed by the Corporation on the vesting date and, therefore, any unvested shares are forfeited. For non-employee directors, the RSAs vest only if the non-employee director remains as an active board member on the vesting date and, therefore, any unvested shares are forfeited. The RSAs for employees and non-employee directors are either immediately vested at retirement, disability or death, or, continue to vest after retirement, disability or death, depending on the plan under which the shares were granted. The Corporation’s 2019 ESPP provides eligible employees of the Corporation and its subsidiaries an opportunity to purchase shares of common stock of the Corporation through quarterly offerings financed by payroll deductions. The price of the stock to be paid by the employees shall be equal to 85 percent of the average of the closing price of the Corporation’s common stock on each trading day during the offering period. However, in no event shall such purchase price be less than the lesser of an amount equal to 85 percent of the market price of the Corporation’s stock on the offering date or an amount equal to 85 percent of the market value on the date of purchase. Common stock purchases are made quarterly and are paid through advance payroll deductions up to a calendar year maximum of $25,000. Compensation expense related to unvested share-based awards is recorded by recognizing the unamortized grant date fair value of these awards over the remaining service periods of those awards, with no change in historical reported fair values and earnings. Awards are valued at fair value in accordance with provisions of share-based compensation guidance and are recognized on a straight-line basis over the service periods of each award. To complete the exercise of vested stock options, RSA’s and ESPP options, the Corporation generally issues new shares from its authorized but unissued share pool. Share-based compensation for the three and six months ended June 30, 2021 was $1,208,000 and $2,398,000, respectively, compared to $1,214,000 and $2,433,000, respectively, for the three and six months ended June 30, 2020. Share-based compensation has been recognized as a component of salaries and benefits expense in the accompanying Consolidated Condensed Statements of Income. Share-based compensation expense recognized in the Consolidated Condensed Statements of Income is based on awards ultimately expected to vest and is reduced for estimated forfeitures. Share-based compensation guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. Pre-vesting forfeitures were estimated to be approximately 0.5 percent for the six months ended June 30, 2021, based on historical experience. The following table summarizes the components of the Corporation's share-based compensation awards recorded as an expense and the income tax benefit of such awards. Three Months Ended Six Months Ended 2021 2020 2021 2020 Stock and ESPP Options Pre-tax compensation expense $ 40 $ 12 $ 115 $ 53 Income tax expense (benefit) (20) (29) (92) (29) Stock and ESPP option expense, net of income taxes $ 20 $ (17) $ 23 $ 24 Restricted Stock Awards Pre-tax compensation expense $ 1,168 $ 1,202 $ 2,283 $ 2,380 Income tax expense (benefit) (246) (236) (483) (493) Restricted stock awards expense, net of income taxes $ 922 $ 966 $ 1,800 $ 1,887 Total Share-Based Compensation Pre-tax compensation expense $ 1,208 $ 1,214 $ 2,398 $ 2,433 Income tax expense (benefit) (266) (265) (575) (522) Total share-based compensation expense, net of income taxes $ 942 $ 949 $ 1,823 $ 1,911 As of June 30, 2021, unrecognized compensation expense related to RSAs was $7.5 million and is expected to be recognized over a weighted-average period of 1.79 years. The Corporation did not have any unrecognized compensation expense related to stock options as of June 30, 2021. Stock option activity under the Corporation's stock option plans as of June 30, 2021 and changes during the six months ended June 30, 2021, were as follows: Number of Weighted-Average Exercise Price Weighted Average Remaining Aggregate Outstanding at January 1, 2021 45,800 $ 15.00 Exercised (17,300) $ 11.46 Outstanding June 30, 2021 28,500 $ 17.14 2.00 $ 699,060 Vested and Expected to Vest at June 30, 2021 28,500 $ 17.14 2.00 $ 699,060 Exercisable at June 30, 2021 28,500 $ 17.14 2.00 $ 699,060 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Corporation's closing stock price on the last trading day of the first six months of 2021 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their stock options on June 30, 2021. The amount of aggregate intrinsic value will change based on the fair market value of the Corporation's common stock. The aggregate intrinsic value of stock options exercised during the six months ended June 30, 2021 and 2020 was $559,000 and $197,000, respectively. Cash receipts of stock options exercised during this same period were $198,000 and $83,000, respectively. The following table summarizes information on unvested RSAs outstanding as of June 30, 2021: Number of Shares Weighted-Average Unvested RSAs at January 1, 2021 357,883 $ 36.30 Granted 77,216 $ 42.52 Vested (4,660) $ 42.14 Forfeited (5,050) $ 36.56 Unvested RSAs at June 30, 2021 425,389 $ 37.36 The grant date fair value of ESPP options was estimated to be approximately $40,000 at the beginning of the April 1, 2021 quarterly offering period. The ESPP options vested during the three months ending June 30, 2021, leaving no unrecognized compensation expense related to unvested ESPP options at June 30, 2021. |
Income Tax
Income Tax | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax | INCOME TAX The following table summarizes the major components creating differences between income taxes at the federal statutory and the effective tax rate recorded in the consolidated statements of income for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended 2021 2020 2021 2020 Reconciliation of Federal Statutory to Actual Tax Expense: Federal statutory income tax at 21% $ 13,830 $ 7,899 $ 26,098 $ 15,827 Tax-exempt interest income (3,893) (3,199) (7,599) (6,221) Share-based compensation (13) (6) (72) (6) Tax-exempt earnings and gains on life insurance (253) (278) (534) (564) Tax credits (77) (89) (150) (150) CARES Act - NOL carryback rate differential — — — (1,178) State Income Tax 872 164 1,574 250 Other (172) 132 (71) 155 Actual Tax Expense $ 10,294 $ 4,623 $ 19,246 $ 8,113 Effective Tax Rate 15.6 % 12.3 % 15.5 % 10.8 % |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NET INCOME PER SHARE Basic net income per share is computed by dividing net income by the weighted-average shares outstanding during the reporting period. Diluted net income per share is computed by dividing net income by the combination of the weighted-average shares outstanding during the reporting period and all potentially dilutive common shares. Potentially dilutive common shares include stock options and RSAs issued under the Corporation's share-based compensation plans. Potentially dilutive common shares are excluded from the computation of diluted earnings per share in the periods where the effect would be antidilutive. The following table reconciles basic and diluted net income per share for the three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, 2021 2020 Net Income Weighted-Average Shares Per Share Net Income Weighted-Average Shares Per Share Net income available to common stockholders $ 55,559 53,956,296 $ 1.03 $ 32,992 53,762,913 $ 0.62 Effect of potentially dilutive stock options and restricted stock awards 228,128 179,654 Diluted net income per share $ 55,559 54,184,424 $ 1.03 $ 32,992 53,942,567 $ 0.62 Six Months Ended June 30, 2021 2020 Net Income Weighted-Average Shares Per Share Net Income Weighted-Average Shares Per Share Net income available to common stockholders $ 105,028 53,943,248 $ 1.95 $ 67,255 54,247,493 $ 1.24 Effect of potentially dilutive stock options and restricted stock awards 216,084 182,026 Diluted net income per share $ 105,028 54,159,332 $ 1.94 $ 67,255 54,429,519 $ 1.24 |
General Litigation and Regulato
General Litigation and Regulatory Examinations | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
General Litigation and Regulatory Examinations | GENERAL LITIGATION AND REGULATORY EXAMINATIONS See Item 1. LEGAL PROCEEDINGS in Part II of this Form 10-Q for information relating to certain pending litigation. There are no other pending legal proceedings, other than litigation incidental to the ordinary business of the Corporation or its subsidiaries, of a material nature to which the Corporation or its subsidiaries is a party or of which any of their properties are subject. The Corporation is also subject to periodic examinations by various regulatory agencies. It is the general opinion of management that the disposition or ultimate resolution of any such routine litigation or regulatory examinations will not have a material adverse effect on the consolidated financial position, results of operations and cash flow of the Corporation. |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Changes Adopted in 2021 and New Accounting Pronouncements Not Yet Adopted | Recent Accounting Changes Adopted In 2021 The Corporation continually monitors potential accounting pronouncements and the following pronouncements have been deemed to have the most applicability to the Corporation's financial statements: FASB Accounting Standards Updates No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Summary - The FASB issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This new guidance replaces the previous "incurred loss" model for measuring credit losses with an "expected life of loan loss" model, referred to as the CECL model. Under the CECL model, certain financial assets carried at amortized cost, such as loans held for investment and held-to-maturity debt securities, are required to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This measurement takes place at the time the financial asset is first added to the balance sheet and periodically thereafter. This differs significantly from the “incurred loss” model, which delayed recognition until it is probable a loss had been incurred. The Corporation developed models that satisfy the requirements of the new standard which are governed by a system of internal controls and a cross-functional working group consisting of accounting, finance, and credit administration personnel. The loan portfolio was pooled into ten loan segments with similar risk characteristics for which the probability of default/loss given default methodology was applied. The Corporation utilized a one-year economic forecast period then reverted to historical macroeconomic levels for the remaining life of the portfolio. A baseline macroeconomic scenario, along with other scenarios, were used to develop a range of estimated credit losses for which to determine the best estimate within. The ASU was effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Pursuant to the CARES Act and the related joint statement of federal banking regulators (which also became effective as of March 27, 2020), and consistent with guidance from the SEC and FASB, the Corporation elected to delay implementation of ASU No. 2016-13, which was set to expire on December 31, 2020. However, the CAA (as discussed above) extended the temporary relief from CECL compliance to the earlier of the first day of the fiscal year that begins after the date on which the national emergency concerning COVID-19 terminates, or January 1, 2022. The Corporation elected to delay implementation of CECL following the approval of the CARES Act and, with the enactment of the CAA, the Corporation elected to adopt CECL on January 1, 2021. This allows the Corporation to utilize the CECL standard for the entire year of 2021, while its 2020 financial statements were prepared under the incurred loss model. As of the adoption and day one measurement date of January 1, 2021, the Corporation recorded a one-time cumulative-effect adjustment to retained earnings, net of income taxes, on the consolidated balance sheet of $68.0 million. The allowance increased 57 percent from December 31, 2020, or $74.1 million, because it covered expected credit losses over the life of the loan portfolio, which approximates four years, and it included an allowance on all purchased loans that were previously excluded from the allowance for loan losses calculation. CECL also requires the establishment of a reserve for potential losses from unfunded commitments that is recorded in other liabilities, separate from allowance for credit losses, which was approximately $20.5 million. An allowance for credit losses of $245,000 was recorded on the state and municipal securities classified as held to maturity based on applying the long-term historical credit loss rate, as published by Moody’s, for similarly rated securities. FASB Accounting Standards Updates No. 2019-11 - Codification Improvements to (Topic 326): Financial Instruments - Credit Losses Summary - The FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses in order to address issues raised by stakeholders during the implementation of ASU No. 2016-13 , Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments. Among other narrow-scope improvements, the new ASU clarifies guidance around how to report expected recoveries. “Expected recoveries” describes a situation in which an organization recognizes a full or partial write-off of the amortized cost basis of a financial asset, but then later determines that the amount written off, or a portion of that amount, will in fact be recovered. While applying the credit losses standard, stakeholders questioned whether expected recoveries were permitted on assets that had already shown credit deterioration at the time of purchase (also known as PCD assets). In response to this question, the ASU permits organizations to record expected recoveries on PCD assets. In addition to other narrow technical improvements, the ASU also reinforces existing guidance that prohibits organizations from recording negative allowances for available-for-sale debt securities. The ASU includes effective dates and transition requirements that vary depending on whether or not an entity has already adopted ASU No. 2016-13. As discussed above, pursuant to the CARES Act, the Corporation elected to defer the adoption of CECL. Additionally, the 2021 Consolidated Appropriations Act ("CAA"), signed into law on December 27, 2020, amended the CARES Act by extending the temporary relief from CECL compliance to the earlier of the first day of the fiscal year that begins after the date on which the national emergency concerning COVID-19 terminates, or January 1, 2022. The Corporation elected to delay implementation of CECL following the approval of the CARES Act and, with the enactment of the CAA, the Corporation elected to adopt CECL on January 1, 2021. The adoption of this standard did not have a significant effect on the Corporation’s consolidated financial statements or disclosures. FASB Accounting Standards Update No. 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Summary - The FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is expected to reduce cost and complexity related to the accounting for income taxes. The ASU removes specific exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles (GAAP). It eliminates the need for an organization to analyze whether the following apply in a given period: • Exception to the incremental approach for intraperiod tax allocation; • Exceptions to accounting for basis differences when there are ownership changes in foreign investments; and • Exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The ASU also improves financial statement preparers’ application of income tax-related guidance and simplifies GAAP for: • Franchise taxes that are partially based on income; • Transactions with a government that result in a step up in the tax basis of goodwill • Separate financial statements of legal entities that are not subject to tax; and • Enacted changes in tax laws in interim periods. The ASU is part of the FASB’s simplification initiative to make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. For public business entities, the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the ASU was permitted. The Corporation adopted this standard on January 1, 2021 and adoption of this standard did not have a significant effect on the Corporation's consolidated financial statements or disclosures. New Accounting Pronouncements Not Yet Adopted FASB Accounting Standards Updates - No. 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Summary - The FASB issued ASU No. 2020-04 to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. LIBOR and other interbank offered rates are widely used benchmarks or reference rates in the United States and globally. Trillions of dollars in loans, derivatives, and other financial contracts reference LIBOR, the benchmark interest rate banks use to make short-term loans to each other. With global capital markets expected to move away from LIBOR and other interbank offered rates and move toward rates that are more observable or transaction based and less susceptible to manipulation, the FASB launched a broad project in late 2018 to address potential accounting challenges expected to arise from the transition. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. Entities may apply this ASU as of the beginning of an interim period that includes the March 12, 2020 issuance date of the ASU, through December 31, 2022. The Corporation expects to adopt the practical expedients included in the ASU prior to December 31, 2022. The Corporation is implementing a transition plan to identify and modify its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Corporation is assessing ASU 2020-04 and its impact on the Corporation's transition away from LIBOR for its loans and other financial instruments. FASB Accounting Standards Updates - Accounting Standards Update No. 2021-01 - Reference Rate Reform (Topic 848): Scope Summary - The FASB has published ASU 2021-01, Reference Rate Reform. ASU 2021-01 clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply the amendments in this Update on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, up to the date that financial statements are available to be issued. If an entity elects to apply any of the amendments in this Update for an eligible hedging relationship, any adjustments as a result of those elections must be reflected as of the date the entity applies the election. The amendments in this Update do not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship (including periods after December 31, 2022). The Corporation is assessing ASU 2021-01 and its impact on the Corporation's transition away from LIBOR for its loans and other financial instruments. |
General (Tables)
General (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of changes in accounting principles | The following table details the impact of the adoption of CECL on the Corporation's balance sheet as of January 1, 2021. December 31, 2020 Impact of CECL Adoption January 1, 2021 Post-CECL Adoption Assets: Held to maturity securities 1,227,668 (245) 1,227,423 Loans 9,243,174 4,776 9,247,950 Allowance for credit losses - Loans (130,648) (74,055) (204,703) Net loans 9,112,526 (69,279) 9,043,247 Tax asset, deferred and receivable 12,340 21,984 34,324 Liabilities: Allowance for credit losses on unfunded loan commitments — 20,500 20,500 Stockholder's Equity: Retained Earnings 788,578 (68,040) 720,538 — |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of preliminary valuations of the fair value of assets acquired and liabilities assumed | Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair value on the date of the acquisition. Based on preliminary valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change based on the timing of the transaction, the purchase price for the Hoosier acquisition is detailed in the following table. If, prior to the end of the one-year measurement period for finalizing the purchase price allocation, information becomes available about facts and circumstances that existed as of the acquisition date, which would indicate adjustments are required to the purchase price allocation, such adjustments will be included in the purchase price allocation retrospectively. Fair Value Cash and cash equivalents $ 292 Other assets 35 Other liabilities (816) Net tangible assets acquired (489) Customer relationship intangible 2,247 Goodwill 1,467 Purchase price $ 3,225 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost, gross unrealized gains, gross unrealized losses and approximate fair value of investment securities | The following table summarizes the amortized cost, gross unrealized gains and losses and approximate fair value of investment securities available for sale as of June 30, 2021 and December 31, 2020. Amortized Gross Unrealized Gross Unrealized Fair Available for sale at June 30, 2021 U.S. Treasury $ 1,000 $ — $ — $ 1,000 U.S. Government-sponsored agency securities 11,502 39 — 11,541 State and municipal 1,365,211 87,152 518 1,451,845 U.S. Government-sponsored mortgage-backed securities 952,720 12,937 7,371 958,286 Corporate obligations 4,031 197 — 4,228 Total available for sale $ 2,334,464 $ 100,325 $ 7,889 $ 2,426,900 Amortized Gross Unrealized Gross Unrealized Fair Available for sale at December 31, 2020 U.S. Government-sponsored agency securities $ 2,380 $ 50 $ — $ 2,430 State and municipal 1,168,711 89,420 246 1,257,885 U.S. Government-sponsored mortgage-backed securities 632,267 22,505 103 654,669 Corporate obligations 4,031 104 — 4,135 Total available for sale $ 1,807,389 $ 112,079 $ 349 $ 1,919,119 The following table summarizes the amortized cost, gross unrealized gains and losses, approximate fair value and allowance for credit losses on investment securities held to maturity as of June 30, 2021 and December 31, 2020. Amortized Allowance for Credit Losses Net Carrying Amount Gross Unrealized Gross Unrealized Fair Held to maturity at June 30, 2021 U.S. Government-sponsored agency securities $ 60,677 $ — $ 60,677 $ 1 $ 715 $ 59,963 State and municipal 863,426 245 863,181 31,276 977 893,725 U.S. Government-sponsored mortgage-backed securities 796,056 — 796,056 12,164 2,561 805,659 Foreign investment 1,500 — 1,500 — — 1,500 Total held to maturity $ 1,721,659 $ 245 $ 1,721,414 $ 43,441 $ 4,253 $ 1,760,847 Amortized Allowance for Credit Losses Net Carrying Amount Gross Unrealized Gross Unrealized Fair Held to maturity at December 31, 2020 U.S. Government-sponsored agency securities $ 31,087 $ — $ 31,087 $ 10 $ 113 $ 30,984 State and municipal 619,927 — 619,927 34,978 32 654,873 U.S. Government-sponsored mortgage-backed securities 575,154 — 575,154 17,889 107 592,936 Foreign investment 1,500 — 1,500 — — 1,500 Total held to maturity $ 1,227,668 $ — $ 1,227,668 $ 52,877 $ 252 $ 1,280,293 |
Schedule of amortized cost of investment securities held to maturity aggregated by credit quality indicator | The following table summarizes the amortized cost of investment securities held to maturity at June 30, 2021, aggregated by credit quality indicator. Held to Maturity State and municipal Other Total Credit Rating: Aaa $ 54,753 $ 60,677 $ 115,430 Aa1 131,246 — 131,246 Aa2 136,008 — 136,008 Aa3 96,915 — 96,915 A1 66,549 — 66,549 A2 18,962 — 18,962 A3 1,065 — 1,065 Baa2 527 — 527 Non-rated 357,401 797,556 1,154,957 Total $ 863,426 $ 858,233 $ 1,721,659 |
Schedule of allowance for credit losses on investment securities held to maturity | The following table details activity in the allowance for credit losses on investment securities held to maturity during the six months ended June 30, 2021. State and municipal Allowance for Credit Losses: Balance, December 31, 2020 $ — Impact of adopting ASC 326 245 Provision for credit loss — Securities charged off — Recoveries on securities — Balance, June 30, 2021 $ 245 |
Schedule of investment securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | The following tables summarize, as of June 30, 2021 and December 31, 2020, investment securities available for sale in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by security type and length of time in a continuous unrealized loss position. Less than 12 Months 12 Months or Longer Total Fair Gross Fair Gross Fair Gross Investment securities available for sale at June 30, 2021 State and municipal $ 63,102 $ 518 $ — $ — $ 63,102 $ 518 U.S. Government-sponsored mortgage-backed securities 460,616 7,371 — — 460,616 7,371 Total investment securities available for sale $ 523,718 $ 7,889 $ — $ — $ 523,718 $ 7,889 Less than 12 Months 12 Months or Longer Total Fair Gross Fair Gross Fair Gross Investment securities available for sale at December 31, 2020 State and municipal $ 5,368 $ 246 $ — $ — $ 5,368 $ 246 U.S. Government-sponsored mortgage-backed securities 9,651 103 — — 9,651 103 Total investment securities available for sale $ 15,019 $ 349 $ — $ — $ 15,019 $ 349 |
Schedule of investments in debt and equity securities reported in the financial statements at an amount less than their historical cost | Certain investment securities available for sale are reported in the financial statements at an amount less than their historical cost as indicated in the table below. June 30, 2021 December 31, 2020 Investments available for sale reported at less than historical cost: Historical cost $ 531,607 $ 15,368 Fair value 523,718 15,019 Gross unrealized losses $ 7,889 $ 349 Percent of the Corporation's investments available for sale 21.6 % 0.8 % |
Schedule of amortized cost and fair value of available for sale securities and held to maturity securities | The amortized cost and fair value of investment securities available for sale and held to maturity at June 30, 2021 and December 31, 2020, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity are shown separately. Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at June 30, 2021 Due in one year or less $ 1,060 $ 1,067 $ 8,405 $ 8,461 Due after one through five years 8,850 9,176 23,079 24,351 Due after five through ten years 90,059 95,333 147,663 152,770 Due after ten years 1,281,775 1,363,038 746,456 769,606 1,381,744 1,468,614 925,603 955,188 U.S. Government-sponsored mortgage-backed securities 952,720 958,286 796,056 805,659 Total investment securities $ 2,334,464 $ 2,426,900 $ 1,721,659 $ 1,760,847 Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at December 31, 2020 Due in one year or less $ 1,349 $ 1,353 $ 9,712 $ 9,755 Due after one through five years 5,545 5,764 22,241 23,190 Due after five through ten years 70,777 75,223 115,408 121,333 Due after ten years 1,097,451 1,182,110 505,153 533,079 1,175,122 1,264,450 652,514 687,357 U.S. Government-sponsored mortgage-backed securities 632,267 654,669 575,154 592,936 Total investment securities $ 1,807,389 $ 1,919,119 $ 1,227,668 $ 1,280,293 |
Schedule of gross gains on sales and redemptions of available for sale securities | Gross gains on the sales and redemptions of investment securities available for sale for the three and six months ended June 30, 2021 and 2020 are shown below. Three Months Ended Six Months Ended 2021 2020 2021 2020 Sales and redemptions of investment securities available for sale: Gross gains $ 1,822 $ 3,068 $ 3,898 $ 7,680 Gross losses 61 — 338 — Net gains on sales and redemptions of investment securities available for sale $ 1,761 $ 3,068 $ 3,560 $ 7,680 |
Loans and Allowance (Tables)
Loans and Allowance (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Schedule of composition of loan portfolio by loan class | The following table illustrates the composition of the Corporation’s loan portfolio by loan class for the periods indicated: June 30, 2021 December 31, 2020 Commercial and industrial loans $ 2,671,076 $ 2,776,699 Agricultural land, production and other loans to farmers 235,020 281,884 Real estate loans: Construction 491,200 484,723 Commercial real estate, non-owner occupied 2,263,497 2,220,949 Commercial real estate, owner occupied 953,501 958,501 Residential 1,127,442 1,234,741 Home equity 489,997 508,259 Individuals' loans for household and other personal expenditures 130,819 129,479 Public finance and other commercial loans 758,698 647,939 Loans $ 9,121,250 $ 9,243,174 |
Schedule of credit quality and collateral of loan portfolio by loan class | The following tables summarize the risk grading of the Corporation’s loan portfolio by loan class and by year of origination for the years indicated. Consumer loans are not risk graded. For the purposes of this disclosure, the consumer loans are classified in the following manner: loans that are less than 30 days past due are Pass, loans 30-89 days past due are Special Mention and loans greater than 89 days past due are Substandard. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Loans that evidenced deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected are included in the applicable categories below. Commercial and industrial loan balances as of June 30, 2021 with an origination year of 2021 and 2020 include PPP loans of $302.0 million and $113.8 million, respectively. Term Loans (amortized cost basis by origination year) 2021 2020 2019 2018 2017 Prior Revolving loans amortized cost basis Revolving loans converted to term Total Commercial and industrial loans Pass $ 705,017 $ 680,616 $ 220,134 $ 88,941 $ 35,001 $ 61,402 $ 764,492 $ — $ 2,555,603 Special Mention 8,826 31,372 963 1,214 2,315 2,299 17,494 — 64,483 Substandard 2,496 3,140 6,148 647 345 861 37,353 — 50,990 Total Commercial and industrial loans $ 716,339 $ 715,128 $ 227,245 $ 90,802 $ 37,661 $ 64,562 $ 819,339 $ — $ 2,671,076 Agricultural land, production and other loans to farmers Pass 29,307 53,177 24,414 10,441 7,291 43,426 50,668 — 218,724 Special Mention 132 1,561 186 480 — 392 1,572 — 4,323 Substandard 719 1,893 137 1,732 402 3,479 3,611 — 11,973 Total Agricultural land, production and other loans to farmers $ 30,158 $ 56,631 $ 24,737 $ 12,653 $ 7,693 $ 47,297 $ 55,851 $ — $ 235,020 Real estate loans: Construction Pass 87,073 190,362 140,397 49,429 3,031 2,788 17,622 490,702 Special Mention — 367 — — — — 40 — 407 Substandard — 28 — 62 — 1 — — 91 Total Construction $ 87,073 $ 190,757 $ 140,397 $ 49,491 $ 3,031 $ 2,789 $ 17,662 $ — $ 491,200 Commercial real estate, non-owner occupied Pass 320,351 829,716 276,030 181,489 134,569 177,499 28,768 — 1,948,422 Special Mention 53,576 161,095 — 10,333 — 10,098 1,250 — 236,352 Substandard 5,997 39,117 23,676 2,130 7,503 300 — — 78,723 Total Commercial real estate, non-owner occupied $ 379,924 $ 1,029,928 $ 299,706 $ 193,952 $ 142,072 $ 187,897 $ 30,018 $ — $ 2,263,497 Commercial real estate, owner occupied Pass 154,390 444,147 110,496 48,809 53,093 75,210 35,589 — 921,734 Special Mention 562 5,813 2,570 1,626 2,208 1,748 157 — 14,684 Substandard 954 11,567 — 53 2,734 1,775 — — 17,083 Total Commercial real estate, owner occupied $ 155,906 $ 461,527 $ 113,066 $ 50,488 $ 58,035 $ 78,733 $ 35,746 $ — $ 953,501 Residential Pass 162,624 411,016 124,377 86,116 67,041 258,010 3,919 34 1,113,137 Special Mention 282 1,322 219 657 60 1,152 — — 3,692 Substandard 1,434 3,248 107 1,392 203 4,140 89 — 10,613 Total Residential $ 164,340 $ 415,586 $ 124,703 $ 88,165 $ 67,304 $ 263,302 $ 4,008 $ 34 $ 1,127,442 Home equity Pass 24,144 20,741 2,313 2,530 1,605 4,689 430,070 171 486,263 Special Mention — — — 9 — 59 1,888 — 1,956 Substandard 488 — — 10 98 178 1,004 — 1,778 Total Home Equity $ 24,632 $ 20,741 $ 2,313 $ 2,549 $ 1,703 $ 4,926 $ 432,962 $ 171 $ 489,997 Individuals' loans for household and other personal expenditures Pass 31,102 34,212 20,548 15,707 3,433 6,358 17,855 — 129,215 Special Mention 5 223 188 40 16 25 1,107 — 1,604 Substandard — — — — — — — — — Total Individuals' loans for household and other personal expenditures $ 31,107 $ 34,435 $ 20,736 $ 15,747 $ 3,449 $ 6,383 $ 18,962 $ — $ 130,819 Public finance and other commercial loans Pass 172,554 189,090 101,518 39,675 108,677 133,286 13,898 — 758,698 Total Public finance and other commercial loans $ 172,554 $ 189,090 $ 101,518 $ 39,675 $ 108,677 $ 133,286 $ 13,898 $ — $ 758,698 Loans $ 1,762,033 $ 3,113,823 $ 1,054,421 $ 543,522 $ 429,625 $ 789,175 $ 1,428,446 $ 205 $ 9,121,250 December 31, 2020 Commercial Commercial Commercial Substandard Commercial Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 2,562,077 $ 117,503 $ 97,119 $ — $ — $ — $ — $ 2,776,699 Agricultural land, production and other loans to farmers 243,991 26,835 9,885 — — 1,173 — 281,884 Real estate Loans: Construction 446,846 10,445 5,549 — — 21,763 120 484,723 Commercial real estate, non-owner occupied 1,979,827 160,304 80,818 — — — — 2,220,949 Commercial real estate, owner occupied 907,566 17,641 33,294 — — 958,501 Residential 199,338 2,261 7,058 — — 1,020,687 5,397 1,234,741 Home equity 12,714 — 989 — — 492,999 1,557 508,259 Individuals' loans for household and other personal expenditures — — — — — 129,440 39 129,479 Public finance and other commercial loans 647,939 — — — — — — 647,939 Loans $ 7,000,298 $ 334,989 $ 234,712 $ — $ — $ 1,666,062 $ 7,113 $ 9,243,174 The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses: June 30, 2021 Commercial Real Estate Residential Real Estate Other Total Allowance on Collateral Dependent Loans Commercial and industrial loans $ — $ — $ 2,106 $ 2,106 $ 727 Agricultural land, production and other loans to farmers 562 — 300 862 117 Real estate loans: Commercial real estate, non-owner occupied 47,834 — — 47,834 4,943 Commercial real estate, owner occupied 2,942 — — 2,942 238 Residential — 2,981 — 2,981 334 Home equity — 408 — 408 67 Individuals' loans for household and other personal expenditures — — 1 1 — Loans $ 51,338 $ 3,389 $ 2,407 $ 57,134 $ 6,426 |
Schedule of past due aging of loan portfolio by loan class | The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, for the years indicated: June 30, 2021 Current 30-59 Days 60-89 Days 90 Days or More Past Due Total Loans > 90 Days or More Past Due Commercial and industrial loans $ 2,658,952 $ 6,336 $ 4,590 $ 1,198 $ 2,671,076 $ — Agricultural land, production and other loans to farmers 234,432 — — 588 235,020 — Real estate loans: Construction 491,200 — — — 491,200 — Commercial real estate, non-owner occupied 2,221,577 39 5,364 36,517 2,263,497 — Commercial real estate, owner occupied 949,949 2,127 — 1,425 953,501 — Residential 1,121,721 2,276 347 3,098 1,127,442 183 Home equity 487,075 832 1,125 965 489,997 — Individuals' loans for household and other personal expenditures 129,214 1,397 208 — 130,819 — Public finance and other commercial loans 758,698 — — — 758,698 — Loans $ 9,052,818 $ 13,007 $ 11,634 $ 43,791 $ 9,121,250 $ 183 December 31, 2020 Current 30-59 Days 60-89 Days 90 Days or More Past Due Total Loans > 90 Days or More Past Due Commercial and industrial loans $ 2,761,473 $ 5,866 $ 6,571 $ 2,789 $ 2,776,699 $ 594 Agricultural land, production and other loans to farmers 280,615 146 226 897 281,884 — Real estate loans: Construction 484,706 — 17 — 484,723 — Commercial real estate, non-owner occupied 2,184,681 2,525 2,109 31,634 2,220,949 — Commercial real estate, owner occupied 951,561 4,854 180 1,906 958,501 — Residential 1,226,779 3,269 1,429 3,264 1,234,741 133 Home equity 503,596 2,644 559 1,460 508,259 19 Individuals' loans for household and other personal expenditures 129,049 334 96 — 129,479 — Public finance and other commercial loans 647,939 — — — 647,939 — Loans $ 9,170,399 $ 19,638 $ 11,187 $ 41,950 $ 9,243,174 $ 746 |
Schedule of non-accrual loans by loan class | The following table summarizes the Corporation’s non-accrual loans by loan class for the periods indicated: June 30, 2021 December 31, 2020 Non-Accrual Loans Non-Accrual Loans with no Allowance for Credit Losses Non-Accrual Loans Commercial and industrial loans $ 1,467 $ 781 $ 2,329 Agricultural land, production and other loans to farmers 682 562 1,012 Real estate loans: Construction 1 — 123 Commercial real estate, non-owner occupied 45,437 28,179 46,316 Commercial real estate, owner occupied 2,133 926 3,040 Residential 5,552 816 6,517 Home equity 2,248 — 2,095 Individuals' loans for household and other personal expenditures 36 — 39 Loans $ 57,556 $ 31,264 $ 61,471 |
Schedules of troubled debt restructurings | The following tables summarize troubled debt restructures in the Corporation's loan portfolio that occurred during the three months and six months ended June 30, 2021 and 2020, respectively. Three Months Ended June 30, 2021 Pre- Modification Recorded Balance Term Modification Combination Post - Modification Recorded Balance Number of Loans Real estate loans: Commercial real estate, owner occupied $ 21 $ — $ 21 $ 21 1 Residential 66 66 — 66 2 Total $ 87 $ 66 $ 21 $ 87 3 Three Months Ended June 30, 2020 Pre- Modification Recorded Balance Term Modification Rate Modification Combination Post - Modification Recorded Balance Number of Loans Commercial and industrial loans $ 654 $ 654 $ — $ — $ 654 3 Agricultural land, production and other loans to farmers 458 458 — — 458 1 Real estate loans: Commercial real estate, owner occupied 107 107 — — 107 1 Residential 300 — 112 225 337 6 Total $ 1,519 $ 1,219 $ 112 $ 225 $ 1,556 11 Six Months Ended June 30, 2021 Pre- Modification Recorded Balance Term Modification Rate Modification Combination Post - Modification Recorded Balance Number of Loans Commercial and industrial loans $ 348 $ 348 $ — $ — $ 348 2 Real estate loans: Commercial real estate, owner occupied 21 — — 21 21 1 Residential 691 449 126 118 693 9 Total $ 1,060 $ 797 $ 126 $ 139 $ 1,062 12 Six Months Ended June 30, 2020 Pre- Modification Recorded Balance Term Modification Rate Modification Combination Post - Modification Recorded Balance Number of Loans Commercial and industrial loans $ 654 $ 654 $ — $ — $ 654 3 Agricultural land, production and other loans to farmers 458 458 — — 458 1 Real estate loans: Commercial real estate, owner occupied 107 107 — — 107 1 Residential 300 — 112 225 337 6 Total $ 1,519 $ 1,219 $ 112 $ 225 $ 1,556 11 The following tables summarize troubled debt restructures that occurred during the twelve months ended June 30, 2021 and 2020, that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this schedule, a loan is considered in default if it is 30-days or more past due. Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Number of Loans Recorded Balance Number of Loans Recorded Balance Commercial and industrial loans 2 $ 163 2 $ 163 Real estate loans: Residential 2 195 2 195 Total 4 $ 358 4 $ 358 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Number of Loans Recorded Balance Number of Loans Recorded Balance Commercial and industrial loans 1 $ 268 1 $ 268 Total 1 $ 268 1 $ 268 |
Schedule of changes in allowance for loan losses | The following tables summarize changes in the allowance for credit losses by loan segment for the three and six months ended June 30, 2021: Three Months Ended June 30, 2021 Commercial Commercial Real Estate Construction Consumer & Residential Total Allowance for credit losses Balances, March 31, 2021 $ 65,722 $ 70,861 $ 20,182 $ 44,317 $ 201,082 Provision for credit losses (1,898) 2,842 (3,106) 2,162 — Recoveries on loans 152 33 1 226 412 Loans charged off (295) (1,035) — (389) (1,719) Balances, June 30, 2021 $ 63,681 $ 72,701 $ 17,077 $ 46,316 $ 199,775 Six Months Ended June 30, 2021 Commercial Commercial Real Estate Construction Consumer Residential Consumer & Residential Total Allowance for credit losses Balances, December 31, 2020 $ 47,115 $ 51,070 $ — $ 9,648 $ 22,815 $ — $ 130,648 Credit risk reclassifications — (10,284) 10,284 (9,648) (22,815) 32,463 — Balances, December 31, 2020 after reclassifications 47,115 40,786 10,284 — — 32,463 130,648 Impact of adopting ASC 326 20,024 34,925 8,805 — — 10,301 74,055 Balances, January 1, 2021 Post-ASC 326 adoption 67,139 75,711 19,089 — — 42,764 204,703 Provision for credit losses (2,830) 1,141 (2,011) — — 3,700 — Recoveries on loans 340 197 1 — — 568 1,106 Loans charged off (968) (4,348) (2) — — (716) (6,034) Balances, June 30, 2021 $ 63,681 $ 72,701 $ 17,077 $ — $ — $ 46,316 $ 199,775 Allowance for Loan Losses under prior GAAP ("Incurred Loss Model") Prior to the adoption of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments on January 1, 2021, the Corporation maintained an allowance for loan losses in accordance with the incurred loss model as disclosed in the Corporation's 2020 Annual Report on Form 10-K. The following tables summarize changes in the allowance for loan losses by loan segment for the three and six months ended June 30, 2020: Three Months Ended June 30, 2020 Commercial Commercial Consumer Residential Total Allowance for loan losses: Balances, March 31, 2020 $ 38,431 $ 37,907 $ 5,752 $ 17,364 $ 99,454 Provision for losses 6,240 8,945 2,783 3,927 21,895 Recoveries on loans 106 107 56 48 317 Loans charged off (99) (41) (146) (261) (547) Balances, June 30, 2020 $ 44,678 $ 46,918 $ 8,445 $ 21,078 $ 121,119 Six Months Ended June 30, 2020 Commercial Commercial Consumer Residential Total Allowance for loan losses: Balances, December 31, 2019 $ 32,902 $ 28,778 $ 4,035 $ 14,569 $ 80,284 Provision for losses 11,941 18,139 4,707 6,860 41,647 Recoveries on loans 549 225 98 118 990 Loans charged off (714) (224) (395) (469) (1,802) Balances, June 30, 2020 $ 44,678 $ 46,918 $ 8,445 $ 21,078 $ 121,119 |
Schedule of allowance for credit losses and loan portfolio by loan segment | The table below shows the Corporation’s allowance for loan losses under the incurred loss model and loan portfolio by loan segment as of December 31, 2020. December 31, 2020 Commercial Commercial Consumer Residential Total Allowance Balances: Individually evaluated for impairment $ 223 $ 12,246 $ — $ 432 $ 12,901 Collectively evaluated for impairment 46,892 38,824 9,648 22,383 117,747 Total Allowance for Loan Losses $ 47,115 $ 51,070 $ 9,648 $ 22,815 $ 130,648 Loan Balances: Individually evaluated for impairment $ 1,258 $ 51,605 $ 2 $ 3,291 $ 56,156 Collectively evaluated for impairment 3,505,863 3,805,808 129,477 1,739,709 9,180,857 Loans acquired with deteriorated credit quality 577 5,584 — — 6,161 Loans $ 3,507,698 $ 3,862,997 $ 129,479 $ 1,743,000 $ 9,243,174 |
Schedule of composition of impaired loans by loan class | The following tables show the composition of the Corporation’s impaired loans, related allowance under the incurred loss model and interest income recognized while impaired by loan class as of the periods indicated: December 31, 2020 Unpaid Recorded Related Impaired loans with no related allowance: Commercial and industrial loans $ 1,059 $ 991 $ — Real estate Loans: Commercial real estate, non-owner occupied 4,958 4,694 — Commercial real estate, owner occupied 2,125 1,310 — Residential 957 816 — Individuals' loans for household and other personal expenditures 2 2 — Total $ 9,101 $ 7,813 $ — Impaired loans with related allowance: Commercial and industrial loans $ 268 $ 268 $ 223 Agricultural land, production and other loans to farmers 640 562 3 Real estate Loans: Commercial real estate, non-owner occupied 44,016 43,715 11,686 Commercial real estate, owner occupied 2,061 1,323 557 Residential 2,041 2,014 352 Home equity 487 461 80 Total $ 49,513 $ 48,343 $ 12,901 Total Impaired Loans $ 58,614 $ 56,156 $ 12,901 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Average Interest Average Interest Impaired loans with no related allowance: Commercial and industrial loans $ 5,008 $ — $ 5,008 $ — Real estate Loans: Commercial and farmland 7,637 37 7,910 75 Residential 59 1 59 2 Individuals' loans for household and other personal expenditures 3 — 3 — Total $ 12,707 $ 38 $ 12,980 $ 77 Impaired loans with related allowance: Commercial and industrial loans $ 10,304 $ — $ 10,304 $ — Real estate Loans: Commercial and farmland 18,910 — 19,156 — Residential 3,020 19 3,032 38 Home equity 387 3 390 6 Total $ 32,621 $ 22 $ 32,882 $ 44 Total Impaired Loans $ 45,328 $ 60 $ 45,862 $ 121 |
Schedule of financial instruments with off-balance sheet risk | Financial instruments with off-balance sheet risk were as follows: June 30, 2021 December 31, 2020 Amounts of commitments: Loan commitments to extend credit $ 3,884,912 $ 3,443,514 Standby letters of credit $ 32,505 $ 29,555 |
Schedule of allowance for credit losses, off-balance sheet | The following table details activity in the allowance for credit losses on off-balance sheet commitments: Three Months Ended Balances, March 31, 2021 $ 20,500 Provision for credit losses — Balances, June 30, 2021 $ 20,500 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | 2021 2020 Balance, January 1 $ 543,918 $ 543,918 Goodwill acquired 1,467 — Balance, June 30 $ 545,385 $ 543,918 |
Other Intangibles (Tables)
Other Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of core deposit intangibles | The carrying basis and accumulated amortization of recognized core deposit intangibles and other intangibles are noted below. June 30, 2021 December 31, 2020 Gross carrying amount $ 102,396 $ 102,396 Other intangibles acquired 2,247 — Accumulated amortization (76,242) (73,421) Total core deposit and other intangibles $ 28,401 $ 28,975 |
Schedule of estimated future amortization expense | Estimated future amortization expense is summarized as follows: Amortization Expense 2021 $ 2,927 2022 5,402 2023 5,145 2024 4,510 2025 3,754 After 2025 6,663 $ 28,401 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value of derivative financial instruments and their classification on Balance Sheet | The table below presents the fair value of the Corporation’s derivative financial instruments, as well as their classification on the Balance Sheet, as of June 30, 2021, and December 31, 2020. Asset Derivatives Liability Derivatives June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 Balance Fair Balance Fair Balance Fair Balance Fair Derivatives designated as hedging instruments: Interest rate contracts Other Assets $ — Other Assets $ — Other Liabilities $ 1,464 Other Liabilities $ 2,018 Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 51,845 Other Assets $ 74,335 Other Liabilities $ 51,845 Other Liabilities $ 74,335 |
Schedule of amount of gain (loss) recognized in other comprehensive income | The amount of gain (loss) recognized in other comprehensive income is included in the table below for the periods indicated. Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Interest Rate Products $ (16) $ (145) $ 42 $ (1,459) |
Schedule of amount of gain (loss) reclassified from other comprehensive income | The amount of gain (loss) reclassified from other comprehensive income into income is included in the table below for the periods indicated. Derivatives Designated as Location of Gain (Loss) Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion) Three Months Ended Three Months Ended Interest rate contracts Interest Expense $ (260) $ (231) Derivatives Designated as Location of Gain (Loss) Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion) Six Months Ended Six Months Ended Interest rate contracts Interest Expense $ (513) $ (357) |
Disclosures About Fair Value _2
Disclosures About Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value measurements of assets and liabilities recognized in Consolidated Condensed Balance Sheets measured at fair value | The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fall at June 30, 2021, and December 31, 2020. Fair Value Measurements Using: June 30, 2021 Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Significant Available for sale securities: U.S. Treasury $ 1,000 $ — $ 1,000 $ — U.S. Government-sponsored agency securities 11,541 — 11,541 — State and municipal 1,451,845 — 1,446,085 5,760 U.S. Government-sponsored mortgage-backed securities 958,286 — 958,282 4 Corporate obligations 4,228 — 4,197 31 Interest rate swap asset 51,845 — 51,845 — Interest rate swap liability 53,309 — 53,309 — Fair Value Measurements Using: December 31, 2020 Fair Value Quoted Prices in Significant Other Observable Inputs Significant Available for sale securities: U.S. Government-sponsored agency securities $ 2,430 $ — $ 2,430 $ — State and municipal 1,257,885 — 1,255,441 2,444 U.S. Government-sponsored mortgage-backed securities 654,669 — 654,665 4 Corporate obligations 4,135 — 4,104 31 Interest rate swap asset 74,335 — 74,335 — Interest rate swap liability 76,353 — 76,353 — |
Schedule of reconciliation of beginning and ending balances of recurring fair value measurements recognized in Consolidated Condensed Balance Sheets using significant unobservable Level 3 inputs | The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable Level 3 inputs for the three and six months ended June 30, 2021 and 2020. Available for Sale Securities Three Months Ended Six Months Ended June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Balance at beginning of the period $ 2,146 $ 2,528 $ 2,479 $ 2,892 Included in other comprehensive income 412 (30) 353 (50) Purchases, issuances and settlements 3,241 — 3,241 — Principal payments (4) 2 (278) (342) Ending balance $ 5,795 $ 2,500 $ 5,795 $ 2,500 |
Schedule of description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in Consolidated Condensed Balance Sheets | Following is a description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy for June 30, 2021, and December 31, 2020. Fair Value Measurements Using June 30, 2021 Fair Value Quoted Prices in Significant Other Significant Unobservable Collateral dependent loans $ 43,292 $ — $ — $ 43,292 Other real estate owned 167 — — 167 Fair Value Measurements Using December 31, 2020 Fair Value Quoted Prices in Significant Other Significant Unobservable Impaired loans (collateral dependent) $ 37,250 $ — $ — $ 37,250 Other real estate owned 544 — — 544 |
Schedule of unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at June 30, 2021 and December 31, 2020. June 30, 2021 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 5,760 Discounted cash flow Maturity/Call date 1 month to 15 years US Muni BQ curve A- to BBB-- Discount rate .75% - 4% Weighted-average coupon 4 % Corporate obligations and U.S. Government-sponsored mortgage-backed securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR plus premium for illiquidity plus 200bps Weighted-average coupon —% Collateral dependent loans $ 43,292 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% Weighted-average discount by loan balance 3 % Other real estate owned $ 167 Appraisals Discount to reflect current market conditions 0% - 72% Weighted-average discount of other real estate owned balance 39% December 31, 2020 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 2,444 Discounted cash flow Maturity/Call date 1 month to 15 years US Muni BQ curve A- to BBB- Discount rate 1.50% - 4% Weighted-average coupon 4 % Corporate obligations and U.S Government-sponsored mortgage-backed securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR plus premium for illiquidity plus 200bps Weighted-average coupon —% Impaired loans (collateral dependent) $ 37,250 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 10% Weighted-average discount by loan balance 6% Other real estate owned $ 544 Appraisals Discount to reflect current market conditions 0% - 30% Weighted-average discount of other real estate owned balance 26% |
Schedule of estimated fair values of financial instruments | The following table presents estimated fair values of the Corporation’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2021, and December 31, 2020. June 30, 2021 Quoted Prices in Active Markets Significant Significant Unobservable Carrying Amount (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ 167,596 $ 167,596 $ — $ — Interest-bearing deposits 438,863 438,863 — — Investment securities available for sale 2,426,900 — 2,421,105 5,795 Investment securities held to maturity 1,721,414 — 1,745,282 15,565 Loans held for sale 18,582 — 18,582 — Loans, net 8,921,475 — — 8,976,919 Federal Home Loan Bank stock 28,736 — 28,736 — Interest rate swap asset 51,845 — 51,845 — Interest receivable 54,173 — 54,173 — Liabilities: Deposits $ 12,203,400 $ 11,419,155 $ 782,802 $ — Borrowings: Securities sold under repurchase agreements 146,904 — 146,900 — Federal Home Loan Bank advances 334,243 — 340,783 — Subordinated debentures and other borrowings 118,498 — 107,751 — Interest rate swap liability 53,309 — 53,309 — Interest payable 2,929 — 2,929 — December 31, 2020 Quoted Prices in Active Markets Significant Significant Unobservable Carrying Amount (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ 192,896 $ 192,896 $ — $ — Interest-bearing deposits 392,305 392,305 — — Investment securities available for sale 1,919,119 — 1,916,640 2,479 Investment securities held to maturity 1,227,668 — 1,260,815 19,478 Loans held for sale 3,966 — 3,966 — Loans, net 9,112,526 — — 9,191,628 Federal Home Loan Bank stock 28,736 — 28,736 — Interest rate swap asset 74,335 — 74,335 — Interest receivable 53,948 — 53,948 — Liabilities: Deposits $ 11,361,610 $ 10,482,865 $ 878,257 $ — Borrowings: Securities sold under repurchase agreements 177,102 — 177,097 — Federal Home Loan Bank advances 389,430 — 399,991 — Subordinated debentures and other borrowings 118,380 — 108,439 — Interest rate swap liability 76,353 — 76,353 — Interest payable 3,287 — 3,287 — |
Transfers Accounted for as Se_2
Transfers Accounted for as Secured Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Transfers and Servicing [Abstract] | |
Schedule of collateral pledged for all repurchase agreements accounted for as secured borrowings | The collateral pledged for all repurchase agreements that are accounted for as secured borrowings as of June 30, 2021 and December 31, 2020 were: June 30, 2021 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 145,249 $ 800 $ — $ 855 $ 146,904 December 31, 2020 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 175,449 $ — $ 1,653 $ — $ 177,102 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, as of June 30, 2021 and 2020: Accumulated Other Comprehensive Income (Loss) Unrealized Gains (Losses) on Securities Available for Sale Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Defined Benefit Plans Total Balance at December 31, 2020 $ 87,988 $ (1,594) $ (11,558) $ 74,836 Other comprehensive income (loss) before reclassifications (12,382) 33 — (12,349) Amounts reclassified from accumulated other comprehensive income (2,812) 405 — (2,407) Period change (15,194) 438 — (14,756) Balance at June 30, 2021 $ 72,794 $ (1,156) $ (11,558) $ 60,080 Balance at December 31, 2019 $ 38,872 $ (1,141) $ (9,857) $ 27,874 Other comprehensive income (loss) before reclassifications 42,909 (1,153) — 41,756 Amounts reclassified from accumulated other comprehensive income (6,067) 282 — (5,785) Period change 36,842 (871) — 35,971 Balance at June 30, 2020 $ 75,714 $ (2,012) $ (9,857) $ 63,845 |
Schedule of reclassification out of accumulated other comprehensive income (loss) | The following table presents the reclassification adjustments out of accumulated other comprehensive income (loss) that were included in net income in the Consolidated Condensed Statements of Income for the three and six months ended June 30, 2021 and 2020. Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Three Months Ended June 30, Details about Accumulated Other Comprehensive Income (Loss) Components 2021 2020 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains reclassified into income $ 1,761 $ 3,068 Other income - net realized gains on sales of available for sale securities Related income tax expense (370) (644) Income tax expense $ 1,391 $ 2,424 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (260) $ (231) Interest expense - subordinated debentures and term loans Related income tax benefit 55 49 Income tax expense $ (205) $ (182) Total reclassifications for the period, net of tax $ 1,186 $ 2,242 Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Six Months Ended June 30, Details about Accumulated Other Comprehensive Income (Loss) Components 2021 2020 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains reclassified into income $ 3,560 $ 7,680 Other income - net realized gains on sales of available for sale securities Related income tax expense (748) (1,613) Income tax expense $ 2,812 $ 6,067 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (513) $ (357) Interest expense - subordinated debentures and term loans Related income tax benefit 108 75 Income tax expense $ (405) $ (282) Total reclassifications for the period, net of tax $ 2,407 $ 5,785 (1) For additional detail related to unrealized gains (losses) on available for sale securities and related amounts reclassified from accumulated other comprehensive income see NOTE 3. INVESTMENT SECURITIES of these Notes to Consolidated Condensed Financial Statements. (2) For additional detail related to unrealized gains (losses) on cash flow hedges and related amounts reclassified from accumulated other comprehensive income see NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS of these Notes to Consolidated Condensed Financial Statements. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of components of share-based compensation awards | The following table summarizes the components of the Corporation's share-based compensation awards recorded as an expense and the income tax benefit of such awards. Three Months Ended Six Months Ended 2021 2020 2021 2020 Stock and ESPP Options Pre-tax compensation expense $ 40 $ 12 $ 115 $ 53 Income tax expense (benefit) (20) (29) (92) (29) Stock and ESPP option expense, net of income taxes $ 20 $ (17) $ 23 $ 24 Restricted Stock Awards Pre-tax compensation expense $ 1,168 $ 1,202 $ 2,283 $ 2,380 Income tax expense (benefit) (246) (236) (483) (493) Restricted stock awards expense, net of income taxes $ 922 $ 966 $ 1,800 $ 1,887 Total Share-Based Compensation Pre-tax compensation expense $ 1,208 $ 1,214 $ 2,398 $ 2,433 Income tax expense (benefit) (266) (265) (575) (522) Total share-based compensation expense, net of income taxes $ 942 $ 949 $ 1,823 $ 1,911 |
Schedule of stock option activity under stock option plans | Stock option activity under the Corporation's stock option plans as of June 30, 2021 and changes during the six months ended June 30, 2021, were as follows: Number of Weighted-Average Exercise Price Weighted Average Remaining Aggregate Outstanding at January 1, 2021 45,800 $ 15.00 Exercised (17,300) $ 11.46 Outstanding June 30, 2021 28,500 $ 17.14 2.00 $ 699,060 Vested and Expected to Vest at June 30, 2021 28,500 $ 17.14 2.00 $ 699,060 Exercisable at June 30, 2021 28,500 $ 17.14 2.00 $ 699,060 |
Schedule of unvested RSAs outstanding | The following table summarizes information on unvested RSAs outstanding as of June 30, 2021: Number of Shares Weighted-Average Unvested RSAs at January 1, 2021 357,883 $ 36.30 Granted 77,216 $ 42.52 Vested (4,660) $ 42.14 Forfeited (5,050) $ 36.56 Unvested RSAs at June 30, 2021 425,389 $ 37.36 |
Income Tax (Tables)
Income Tax (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of reconciliation of Federal Statutory to actual tax expense | The following table summarizes the major components creating differences between income taxes at the federal statutory and the effective tax rate recorded in the consolidated statements of income for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended 2021 2020 2021 2020 Reconciliation of Federal Statutory to Actual Tax Expense: Federal statutory income tax at 21% $ 13,830 $ 7,899 $ 26,098 $ 15,827 Tax-exempt interest income (3,893) (3,199) (7,599) (6,221) Share-based compensation (13) (6) (72) (6) Tax-exempt earnings and gains on life insurance (253) (278) (534) (564) Tax credits (77) (89) (150) (150) CARES Act - NOL carryback rate differential — — — (1,178) State Income Tax 872 164 1,574 250 Other (172) 132 (71) 155 Actual Tax Expense $ 10,294 $ 4,623 $ 19,246 $ 8,113 Effective Tax Rate 15.6 % 12.3 % 15.5 % 10.8 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net income per share | The following table reconciles basic and diluted net income per share for the three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, 2021 2020 Net Income Weighted-Average Shares Per Share Net Income Weighted-Average Shares Per Share Net income available to common stockholders $ 55,559 53,956,296 $ 1.03 $ 32,992 53,762,913 $ 0.62 Effect of potentially dilutive stock options and restricted stock awards 228,128 179,654 Diluted net income per share $ 55,559 54,184,424 $ 1.03 $ 32,992 53,942,567 $ 0.62 Six Months Ended June 30, 2021 2020 Net Income Weighted-Average Shares Per Share Net Income Weighted-Average Shares Per Share Net income available to common stockholders $ 105,028 53,943,248 $ 1.95 $ 67,255 54,247,493 $ 1.24 Effect of potentially dilutive stock options and restricted stock awards 216,084 182,026 Diluted net income per share $ 105,028 54,159,332 $ 1.94 $ 67,255 54,429,519 $ 1.24 |
General - Narrative (Details)
General - Narrative (Details) - USD ($) $ in Thousands | Jan. 01, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Retained earnings | $ (795,666) | $ (788,578) | |||||||
Allowance for credit losses - Loans | 199,775 | [1] | $ 201,082 | 130,648 | [1] | $ 121,119 | $ 99,454 | $ 80,284 | |
Allowance for credit losses on unfunded loan commitments | 20,500 | $ 20,500 | 0 | ||||||
Allowance for credit losses | 245 | 0 | |||||||
Loans | 9,121,250 | 9,243,174 | |||||||
PPP loans | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Loans | 415,800 | 667,100 | |||||||
State and municipal | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Allowance for credit losses | 245 | 0 | |||||||
Cumulative effect of ASC 326 adoption | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Retained earnings | $ 68,040 | ||||||||
Percent of increase in allowance | 57.00% | ||||||||
Allowance for credit losses - Loans | $ 74,055 | 74,055 | |||||||
Life of loan portfolio | 4 years | ||||||||
Allowance for credit losses on unfunded loan commitments | $ 20,500 | $ 20,500 | |||||||
Loans | 4,776 | ||||||||
Cumulative effect of ASC 326 adoption | State and municipal | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Allowance for credit losses | $ 245 | $ 245 | |||||||
[1] | Beginning January 1, 2021, the amount is based on the current expected credit loss methodology. Prior to January 1, 2021, the amount is based on the incurred loss methodology. See additional details in NOTE 1. GENERAL of these Notes to Consolidated Condensed Financial Statement. |
General - Schedule of Changes i
General - Schedule of Changes in Accounting Principles (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||
Assets: | |||||||||
Held to maturity securities | $ 1,721,414 | $ 1,227,668 | |||||||
Loans | 9,121,250 | 9,243,174 | |||||||
Allowance for credit losses - Loans | (199,775) | [1] | $ (201,082) | (130,648) | [1] | $ (121,119) | $ (99,454) | $ (80,284) | |
Net loans | 8,921,475 | 9,112,526 | |||||||
Tax asset, deferred and receivable | 36,924 | 12,340 | |||||||
Liabilities: | |||||||||
Allowance for credit losses on unfunded loan commitments | 20,500 | $ 20,500 | 0 | ||||||
Stockholder's Equity: | |||||||||
Retained Earnings | 795,666 | 788,578 | |||||||
Impact of CECL Adoption | |||||||||
Assets: | |||||||||
Held to maturity securities | $ (245) | ||||||||
Loans | 4,776 | ||||||||
Allowance for credit losses - Loans | (74,055) | (74,055) | |||||||
Net loans | (69,279) | ||||||||
Tax asset, deferred and receivable | 21,984 | ||||||||
Liabilities: | |||||||||
Allowance for credit losses on unfunded loan commitments | $ 20,500 | 20,500 | |||||||
Stockholder's Equity: | |||||||||
Retained Earnings | (68,040) | ||||||||
January 1, 2021 Post-CECL Adoption | |||||||||
Assets: | |||||||||
Held to maturity securities | 1,227,423 | ||||||||
Loans | 9,247,950 | ||||||||
Allowance for credit losses - Loans | (204,703) | $ (204,703) | |||||||
Net loans | 9,043,247 | ||||||||
Tax asset, deferred and receivable | 34,324 | ||||||||
Liabilities: | |||||||||
Allowance for credit losses on unfunded loan commitments | 20,500 | ||||||||
Stockholder's Equity: | |||||||||
Retained Earnings | $ 720,538 | ||||||||
[1] | Beginning January 1, 2021, the amount is based on the current expected credit loss methodology. Prior to January 1, 2021, the amount is based on the incurred loss methodology. See additional details in NOTE 1. GENERAL of these Notes to Consolidated Condensed Financial Statement. |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) - USD ($) $ in Thousands | Apr. 01, 2021 | Jun. 30, 2021 | Jun. 30, 2020 |
Business Acquisition [Line Items] | |||
Cash paid in acquisition | $ 3,225 | $ 0 | |
Hoosier | |||
Business Acquisition [Line Items] | |||
Percentage of interest acquired | 100.00% | ||
Cash paid in acquisition | $ 3,225 | ||
Assets under management | 290,000 | ||
Customer relationship intangible | 2,247 | ||
Hoosier | Customer relationship intangible | |||
Business Acquisition [Line Items] | |||
Customer relationship intangible | $ 2,247 | ||
Estimated life | 10 years |
Acquisition - Assets Acquired a
Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Apr. 01, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 545,385 | $ 543,918 | $ 543,918 | $ 543,918 | |
Hoosier | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 292 | ||||
Other assets | 35 | ||||
Other liabilities | (816) | ||||
Net tangible assets acquired | (489) | ||||
Customer relationship intangible | 2,247 | ||||
Goodwill | 1,467 | ||||
Purchase price | $ 3,225 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Approximate Fair Value of Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Available for sale securities | ||
Amortized Cost | $ 2,334,464 | $ 1,807,389 |
Amortized Cost | 2,334,464 | 1,807,389 |
Gross Unrealized Gains | 100,325 | 112,079 |
Gross Unrealized Losses | 7,889 | 349 |
Fair Value | 2,426,900 | 1,919,119 |
Held to maturity securities | ||
Amortized cost of investment securities held to maturity | 1,721,659 | 1,227,668 |
Allowance for Credit Losses | 245 | 0 |
Held to maturity securities | 1,721,414 | 1,227,668 |
Gross Unrealized Gains | 43,441 | 52,877 |
Gross Unrealized Losses | 4,253 | 252 |
Fair Value | 1,760,847 | 1,280,293 |
U.S. Treasury | ||
Available for sale securities | ||
Amortized Cost | 1,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 1,000 | |
U.S. Government-sponsored agency securities | ||
Available for sale securities | ||
Amortized Cost | 11,502 | 2,380 |
Gross Unrealized Gains | 39 | 50 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 11,541 | 2,430 |
Held to maturity securities | ||
Amortized cost of investment securities held to maturity | 60,677 | 31,087 |
Allowance for Credit Losses | 0 | 0 |
Held to maturity securities | 60,677 | 31,087 |
Gross Unrealized Gains | 1 | 10 |
Gross Unrealized Losses | 715 | 113 |
Fair Value | 59,963 | 30,984 |
State and municipal | ||
Available for sale securities | ||
Amortized Cost | 1,365,211 | 1,168,711 |
Gross Unrealized Gains | 87,152 | 89,420 |
Gross Unrealized Losses | 518 | 246 |
Fair Value | 1,451,845 | 1,257,885 |
Held to maturity securities | ||
Amortized cost of investment securities held to maturity | 863,426 | 619,927 |
Allowance for Credit Losses | 245 | 0 |
Held to maturity securities | 863,181 | 619,927 |
Gross Unrealized Gains | 31,276 | 34,978 |
Gross Unrealized Losses | 977 | 32 |
Fair Value | 893,725 | 654,873 |
U.S. Government-sponsored mortgage-backed securities | ||
Available for sale securities | ||
Amortized Cost | 952,720 | 632,267 |
Gross Unrealized Gains | 12,937 | 22,505 |
Gross Unrealized Losses | 7,371 | 103 |
Fair Value | 958,286 | 654,669 |
Held to maturity securities | ||
Amortized cost of investment securities held to maturity | 796,056 | 575,154 |
Allowance for Credit Losses | 0 | 0 |
Held to maturity securities | 796,056 | 575,154 |
Gross Unrealized Gains | 12,164 | 17,889 |
Gross Unrealized Losses | 2,561 | 107 |
Fair Value | 805,659 | 592,936 |
Corporate obligations | ||
Available for sale securities | ||
Amortized Cost | 4,031 | 4,031 |
Gross Unrealized Gains | 197 | 104 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 4,228 | 4,135 |
Foreign investment | ||
Held to maturity securities | ||
Amortized cost of investment securities held to maturity | 1,500 | 1,500 |
Allowance for Credit Losses | 0 | 0 |
Held to maturity securities | 1,500 | 1,500 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 1,500 | $ 1,500 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Thousands | Jun. 30, 2021USD ($)instrument | Jan. 01, 2021USD ($) | Dec. 31, 2020USD ($) |
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | |||
Accrued interest on investment securities | $ 22,900 | ||
Allowance for credit losses | 245 | $ 0 | |
Gross unrealized losses | 7,889 | 349 | |
Carrying value of securities pledged as collateral | 877,100 | 890,000 | |
Securities sold under repurchase agreements | 139,300 | 167,300 | |
State and municipal | |||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | |||
Allowance for credit losses | 245 | 0 | |
Gross unrealized losses | $ 518 | 246 | |
Number of securities in unrealized loss positions | instrument | 51 | ||
State and municipal | Cumulative effect of ASC 326 adoption | |||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | |||
Allowance for credit losses | $ 245 | 245 | |
U.S. Government-sponsored mortgage-backed securities | |||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | |||
Allowance for credit losses | $ 0 | 0 | |
Gross unrealized losses | $ 7,371 | $ 103 | |
Number of securities in unrealized loss positions | instrument | 45 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost of Investment Securities Held to Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | $ 1,721,659 | $ 1,227,668 |
Aaa | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 115,430 | |
Aa1 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 131,246 | |
Aa2 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 136,008 | |
Aa3 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 96,915 | |
A1 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 66,549 | |
A2 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 18,962 | |
A3 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 1,065 | |
Baa2 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 527 | |
Non-rated | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 1,154,957 | |
State and municipal | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 863,426 | $ 619,927 |
State and municipal | Aaa | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 54,753 | |
State and municipal | Aa1 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 131,246 | |
State and municipal | Aa2 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 136,008 | |
State and municipal | Aa3 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 96,915 | |
State and municipal | A1 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 66,549 | |
State and municipal | A2 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 18,962 | |
State and municipal | A3 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 1,065 | |
State and municipal | Baa2 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 527 | |
State and municipal | Non-rated | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 357,401 | |
Other | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 858,233 | |
Other | Aaa | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 60,677 | |
Other | Aa1 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 0 | |
Other | Aa2 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 0 | |
Other | Aa3 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 0 | |
Other | A1 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 0 | |
Other | A2 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 0 | |
Other | A3 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 0 | |
Other | Baa2 | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | 0 | |
Other | Non-rated | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost of investment securities held to maturity | $ 797,556 |
Investment Securities - Allowan
Investment Securities - Allowance for Credit Losses on Investment Securities Held to Maturity (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 0 |
Ending balance | 245 |
State and municipal | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | 0 |
Provision for credit loss | 0 |
Securities charged off | 0 |
Recoveries on securities | 0 |
Ending balance | 245 |
State and municipal | Cumulative effect of ASC 326 adoption | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | |
Beginning balance | $ 245 |
Investment Securities - Investm
Investment Securities - Investments' Gross Unrealized Losses and Fair Value Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value | ||
Less than 12 Months | $ 523,718 | $ 15,019 |
12 Months or Longer | 0 | 0 |
Total | 523,718 | 15,019 |
Gross Unrealized Losses | ||
Less than 12 Months | 7,889 | 349 |
12 Months or Longer | 0 | 0 |
Total | 7,889 | 349 |
State and municipal | ||
Fair Value | ||
Less than 12 Months | 63,102 | 5,368 |
12 Months or Longer | 0 | 0 |
Total | 63,102 | 5,368 |
Gross Unrealized Losses | ||
Less than 12 Months | 518 | 246 |
12 Months or Longer | 0 | 0 |
Total | 518 | 246 |
U.S. Government-sponsored mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 460,616 | 9,651 |
12 Months or Longer | 0 | 0 |
Total | 460,616 | 9,651 |
Gross Unrealized Losses | ||
Less than 12 Months | 7,371 | 103 |
12 Months or Longer | 0 | 0 |
Total | $ 7,371 | $ 103 |
Investment Securities - Inves_2
Investment Securities - Investments in Debt and Equity Securities Reported Less than Historical Cost (Details) - Investments reported at less than historical cost - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Investments [Line Items] | ||
Historical cost | $ 531,607 | $ 15,368 |
Fair value | 523,718 | 15,019 |
Gross unrealized losses | $ 7,889 | $ 349 |
Percent of the Corporation's investments available for sale | 21.60% | 0.80% |
Investment Securities - Amort_3
Investment Securities - Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in one year or less | $ 1,060 | $ 1,349 |
Due after one through five years | 8,850 | 5,545 |
Due after five through ten years | 90,059 | 70,777 |
Due after ten years | 1,281,775 | 1,097,451 |
Total debt securities with a single maturity date | 1,381,744 | 1,175,122 |
Total investment securities | 2,334,464 | 1,807,389 |
Fair Value | ||
Due in one year or less | 1,067 | 1,353 |
Due after one through five years | 9,176 | 5,764 |
Due after five through ten years | 95,333 | 75,223 |
Due after ten years | 1,363,038 | 1,182,110 |
Total debt securities with a single maturity date | 1,468,614 | 1,264,450 |
Total investment securities | 2,426,900 | 1,919,119 |
Amortized Cost | ||
Due in one year or less | 8,405 | 9,712 |
Due after one through five years | 23,079 | 22,241 |
Due after five through ten years | 147,663 | 115,408 |
Due after ten years | 746,456 | 505,153 |
Total debt securities with a single maturity date | 925,603 | 652,514 |
Amortized Cost | 1,721,659 | 1,227,668 |
Fair Value | ||
Due in one year or less | 8,461 | 9,755 |
Due after one through five years | 24,351 | 23,190 |
Due after five through ten years | 152,770 | 121,333 |
Due after ten years | 769,606 | 533,079 |
Total debt securities with a single maturity date | 955,188 | 687,357 |
Investment securities held to maturity | 1,760,847 | 1,280,293 |
U.S. Government-sponsored mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity date | 952,720 | 632,267 |
Fair Value | ||
Without single maturity date | 958,286 | 654,669 |
Total investment securities | 958,286 | 654,669 |
Amortized Cost | ||
Without single maturity date | 796,056 | 575,154 |
Amortized Cost | 796,056 | 575,154 |
Fair Value | ||
Without single maturity date | 805,659 | 592,936 |
Investment securities held to maturity | $ 805,659 | $ 592,936 |
Investment Securities - Gross G
Investment Securities - Gross Gains on Sales and Redemptions of Available for Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Sales and redemptions of investment securities available for sale: | ||||
Gross gains | $ 1,822 | $ 3,068 | $ 3,898 | $ 7,680 |
Gross losses | 61 | 0 | 338 | 0 |
Net gains on sales and redemptions of investment securities available for sale | $ 1,761 | $ 3,068 | $ 3,560 | $ 7,680 |
Loans and Allowance - Narrative
Loans and Allowance - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||||||
Loans held for sale | $ 18,582,000 | $ 18,582,000 | $ 3,966,000 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans | 9,121,250,000 | 9,121,250,000 | 9,243,174,000 | ||||
Interest income recognized on non-accrual loans | $ 0 | $ 0 | $ 0 | $ 0 | |||
Standby letters of credit usual term | 2 years | 2 years | |||||
Allowance for credit losses on unfunded loan commitments | $ 20,500,000 | $ 20,500,000 | $ 20,500,000 | 0 | |||
Cumulative effect of ASC 326 adoption | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans | $ 4,776,000 | ||||||
Allowance for credit losses on unfunded loan commitments | 20,500,000 | 20,500,000 | $ 20,500,000 | ||||
30-59 Days Past Due | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans | 13,007,000 | 13,007,000 | 19,638,000 | ||||
Increase (decrease) in past due loans | 6,600,000 | ||||||
Financial Asset, Past Due | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans | 68,400,000 | 68,400,000 | 72,800,000 | ||||
Increase (decrease) in past due loans | 4,400,000 | ||||||
PPP loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans | 415,800,000 | 415,800,000 | 667,100,000 | ||||
Residential | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans | $ 1,127,442,000 | $ 1,127,442,000 | 1,234,741,000 | ||||
Percentage of troubled debt restructured loans | 7600.00% | 6500.00% | |||||
Mortgage loans with formal foreclosure proceedings | $ 3,200,000 | $ 492,000 | $ 3,200,000 | $ 492,000 | |||
Residential | 30-59 Days Past Due | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans | $ 2,276,000 | $ 2,276,000 | $ 3,269,000 |
Loans and Allowance - Compositi
Loans and Allowance - Composition of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 9,121,250 | $ 9,243,174 |
Commercial and industrial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,671,076 | 2,776,699 |
Agricultural land, production and other loans to farmers | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 235,020 | 281,884 |
Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 491,200 | 484,723 |
Commercial real estate, non-owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,263,497 | 2,220,949 |
Commercial real estate, owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 953,501 | 958,501 |
Residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,127,442 | 1,234,741 |
Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 489,997 | 508,259 |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 130,819 | 129,479 |
Public finance and other commercial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 758,698 | $ 647,939 |
Loans and Allowance - Credit Qu
Loans and Allowance - Credit Quality of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | $ 1,762,033 | |
2020 | 3,113,823 | |
2019 | 1,054,421 | |
2018 | 543,522 | |
2017 | 429,625 | |
Prior | 789,175 | |
Revolving loans amortized cost basis | 1,428,446 | |
Revolving loans converted to term | 205 | |
Loans | 9,121,250 | $ 9,243,174 |
Commercial Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 7,000,298 | |
Commercial Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 334,989 | |
Commercial Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 234,712 | |
Commercial Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Consumer Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,666,062 | |
Consumer Non-Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 7,113 | |
PPP loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 302,000 | |
2020 | 113,800 | |
Loans | 415,800 | 667,100 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 716,339 | |
2020 | 715,128 | |
2019 | 227,245 | |
2018 | 90,802 | |
2017 | 37,661 | |
Prior | 64,562 | |
Revolving loans amortized cost basis | 819,339 | |
Revolving loans converted to term | 0 | |
Loans | 2,671,076 | 2,776,699 |
Commercial and industrial loans | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 705,017 | |
2020 | 680,616 | |
2019 | 220,134 | |
2018 | 88,941 | |
2017 | 35,001 | |
Prior | 61,402 | |
Revolving loans amortized cost basis | 764,492 | |
Revolving loans converted to term | 0 | |
Loans | 2,555,603 | |
Commercial and industrial loans | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 8,826 | |
2020 | 31,372 | |
2019 | 963 | |
2018 | 1,214 | |
2017 | 2,315 | |
Prior | 2,299 | |
Revolving loans amortized cost basis | 17,494 | |
Revolving loans converted to term | 0 | |
Loans | 64,483 | |
Commercial and industrial loans | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 2,496 | |
2020 | 3,140 | |
2019 | 6,148 | |
2018 | 647 | |
2017 | 345 | |
Prior | 861 | |
Revolving loans amortized cost basis | 37,353 | |
Revolving loans converted to term | 0 | |
Loans | 50,990 | |
Commercial and industrial loans | Commercial Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,562,077 | |
Commercial and industrial loans | Commercial Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 117,503 | |
Commercial and industrial loans | Commercial Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 97,119 | |
Commercial and industrial loans | Commercial Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial and industrial loans | Commercial Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial and industrial loans | Consumer Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial and industrial loans | Consumer Non-Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Agricultural land, production and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 30,158 | |
2020 | 56,631 | |
2019 | 24,737 | |
2018 | 12,653 | |
2017 | 7,693 | |
Prior | 47,297 | |
Revolving loans amortized cost basis | 55,851 | |
Revolving loans converted to term | 0 | |
Loans | 235,020 | 281,884 |
Agricultural land, production and other loans to farmers | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 29,307 | |
2020 | 53,177 | |
2019 | 24,414 | |
2018 | 10,441 | |
2017 | 7,291 | |
Prior | 43,426 | |
Revolving loans amortized cost basis | 50,668 | |
Revolving loans converted to term | 0 | |
Loans | 218,724 | |
Agricultural land, production and other loans to farmers | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 132 | |
2020 | 1,561 | |
2019 | 186 | |
2018 | 480 | |
2017 | 0 | |
Prior | 392 | |
Revolving loans amortized cost basis | 1,572 | |
Revolving loans converted to term | 0 | |
Loans | 4,323 | |
Agricultural land, production and other loans to farmers | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 719 | |
2020 | 1,893 | |
2019 | 137 | |
2018 | 1,732 | |
2017 | 402 | |
Prior | 3,479 | |
Revolving loans amortized cost basis | 3,611 | |
Revolving loans converted to term | 0 | |
Loans | 11,973 | |
Agricultural land, production and other loans to farmers | Commercial Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 243,991 | |
Agricultural land, production and other loans to farmers | Commercial Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 26,835 | |
Agricultural land, production and other loans to farmers | Commercial Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 9,885 | |
Agricultural land, production and other loans to farmers | Commercial Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Agricultural land, production and other loans to farmers | Commercial Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Agricultural land, production and other loans to farmers | Consumer Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,173 | |
Agricultural land, production and other loans to farmers | Consumer Non-Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 87,073 | |
2020 | 190,757 | |
2019 | 140,397 | |
2018 | 49,491 | |
2017 | 3,031 | |
Prior | 2,789 | |
Revolving loans amortized cost basis | 17,662 | |
Revolving loans converted to term | 0 | |
Loans | 491,200 | 484,723 |
Construction | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 87,073 | |
2020 | 190,362 | |
2019 | 140,397 | |
2018 | 49,429 | |
2017 | 3,031 | |
Prior | 2,788 | |
Revolving loans amortized cost basis | 17,622 | |
Revolving loans converted to term | ||
Loans | 490,702 | |
Construction | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 0 | |
2020 | 367 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving loans amortized cost basis | 40 | |
Revolving loans converted to term | 0 | |
Loans | 407 | |
Construction | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 0 | |
2020 | 28 | |
2019 | 0 | |
2018 | 62 | |
2017 | 0 | |
Prior | 1 | |
Revolving loans amortized cost basis | 0 | |
Revolving loans converted to term | 0 | |
Loans | 91 | |
Construction | Commercial Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 446,846 | |
Construction | Commercial Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 10,445 | |
Construction | Commercial Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,549 | |
Construction | Commercial Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Construction | Commercial Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Construction | Consumer Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 21,763 | |
Construction | Consumer Non-Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 120 | |
Commercial real estate, non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 379,924 | |
2020 | 1,029,928 | |
2019 | 299,706 | |
2018 | 193,952 | |
2017 | 142,072 | |
Prior | 187,897 | |
Revolving loans amortized cost basis | 30,018 | |
Revolving loans converted to term | 0 | |
Loans | 2,263,497 | 2,220,949 |
Commercial real estate, non-owner occupied | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 320,351 | |
2020 | 829,716 | |
2019 | 276,030 | |
2018 | 181,489 | |
2017 | 134,569 | |
Prior | 177,499 | |
Revolving loans amortized cost basis | 28,768 | |
Revolving loans converted to term | 0 | |
Loans | 1,948,422 | |
Commercial real estate, non-owner occupied | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 53,576 | |
2020 | 161,095 | |
2019 | 0 | |
2018 | 10,333 | |
2017 | 0 | |
Prior | 10,098 | |
Revolving loans amortized cost basis | 1,250 | |
Revolving loans converted to term | 0 | |
Loans | 236,352 | |
Commercial real estate, non-owner occupied | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 5,997 | |
2020 | 39,117 | |
2019 | 23,676 | |
2018 | 2,130 | |
2017 | 7,503 | |
Prior | 300 | |
Revolving loans amortized cost basis | 0 | |
Revolving loans converted to term | 0 | |
Loans | 78,723 | |
Commercial real estate, non-owner occupied | Commercial Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,979,827 | |
Commercial real estate, non-owner occupied | Commercial Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 160,304 | |
Commercial real estate, non-owner occupied | Commercial Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 80,818 | |
Commercial real estate, non-owner occupied | Commercial Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate, non-owner occupied | Commercial Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate, non-owner occupied | Consumer Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate, non-owner occupied | Consumer Non-Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate, owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 155,906 | |
2020 | 461,527 | |
2019 | 113,066 | |
2018 | 50,488 | |
2017 | 58,035 | |
Prior | 78,733 | |
Revolving loans amortized cost basis | 35,746 | |
Revolving loans converted to term | 0 | |
Loans | 953,501 | 958,501 |
Commercial real estate, owner occupied | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 154,390 | |
2020 | 444,147 | |
2019 | 110,496 | |
2018 | 48,809 | |
2017 | 53,093 | |
Prior | 75,210 | |
Revolving loans amortized cost basis | 35,589 | |
Revolving loans converted to term | 0 | |
Loans | 921,734 | |
Commercial real estate, owner occupied | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 562 | |
2020 | 5,813 | |
2019 | 2,570 | |
2018 | 1,626 | |
2017 | 2,208 | |
Prior | 1,748 | |
Revolving loans amortized cost basis | 157 | |
Revolving loans converted to term | 0 | |
Loans | 14,684 | |
Commercial real estate, owner occupied | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 954 | |
2020 | 11,567 | |
2019 | 0 | |
2018 | 53 | |
2017 | 2,734 | |
Prior | 1,775 | |
Revolving loans amortized cost basis | 0 | |
Revolving loans converted to term | 0 | |
Loans | 17,083 | |
Commercial real estate, owner occupied | Commercial Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 907,566 | |
Commercial real estate, owner occupied | Commercial Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 17,641 | |
Commercial real estate, owner occupied | Commercial Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 33,294 | |
Commercial real estate, owner occupied | Commercial Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | ||
Commercial real estate, owner occupied | Commercial Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | ||
Commercial real estate, owner occupied | Consumer Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial real estate, owner occupied | Consumer Non-Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 164,340 | |
2020 | 415,586 | |
2019 | 124,703 | |
2018 | 88,165 | |
2017 | 67,304 | |
Prior | 263,302 | |
Revolving loans amortized cost basis | 4,008 | |
Revolving loans converted to term | 34 | |
Loans | 1,127,442 | 1,234,741 |
Residential | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 162,624 | |
2020 | 411,016 | |
2019 | 124,377 | |
2018 | 86,116 | |
2017 | 67,041 | |
Prior | 258,010 | |
Revolving loans amortized cost basis | 3,919 | |
Revolving loans converted to term | 34 | |
Loans | 1,113,137 | |
Residential | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 282 | |
2020 | 1,322 | |
2019 | 219 | |
2018 | 657 | |
2017 | 60 | |
Prior | 1,152 | |
Revolving loans amortized cost basis | 0 | |
Revolving loans converted to term | 0 | |
Loans | 3,692 | |
Residential | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 1,434 | |
2020 | 3,248 | |
2019 | 107 | |
2018 | 1,392 | |
2017 | 203 | |
Prior | 4,140 | |
Revolving loans amortized cost basis | 89 | |
Revolving loans converted to term | 0 | |
Loans | 10,613 | |
Residential | Commercial Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 199,338 | |
Residential | Commercial Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,261 | |
Residential | Commercial Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 7,058 | |
Residential | Commercial Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential | Commercial Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Residential | Consumer Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,020,687 | |
Residential | Consumer Non-Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,397 | |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 24,632 | |
2020 | 20,741 | |
2019 | 2,313 | |
2018 | 2,549 | |
2017 | 1,703 | |
Prior | 4,926 | |
Revolving loans amortized cost basis | 432,962 | |
Revolving loans converted to term | 171 | |
Loans | 489,997 | 508,259 |
Home equity | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 24,144 | |
2020 | 20,741 | |
2019 | 2,313 | |
2018 | 2,530 | |
2017 | 1,605 | |
Prior | 4,689 | |
Revolving loans amortized cost basis | 430,070 | |
Revolving loans converted to term | 171 | |
Loans | 486,263 | |
Home equity | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 9 | |
2017 | 0 | |
Prior | 59 | |
Revolving loans amortized cost basis | 1,888 | |
Revolving loans converted to term | 0 | |
Loans | 1,956 | |
Home equity | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 488 | |
2020 | 0 | |
2019 | 0 | |
2018 | 10 | |
2017 | 98 | |
Prior | 178 | |
Revolving loans amortized cost basis | 1,004 | |
Revolving loans converted to term | 0 | |
Loans | 1,778 | |
Home equity | Commercial Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 12,714 | |
Home equity | Commercial Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Home equity | Commercial Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 989 | |
Home equity | Commercial Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Home equity | Commercial Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Home equity | Consumer Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 492,999 | |
Home equity | Consumer Non-Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,557 | |
Individuals' loans for household and other personal expenditures | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 31,107 | |
2020 | 34,435 | |
2019 | 20,736 | |
2018 | 15,747 | |
2017 | 3,449 | |
Prior | 6,383 | |
Revolving loans amortized cost basis | 18,962 | |
Revolving loans converted to term | 0 | |
Loans | 130,819 | 129,479 |
Individuals' loans for household and other personal expenditures | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 31,102 | |
2020 | 34,212 | |
2019 | 20,548 | |
2018 | 15,707 | |
2017 | 3,433 | |
Prior | 6,358 | |
Revolving loans amortized cost basis | 17,855 | |
Revolving loans converted to term | 0 | |
Loans | 129,215 | |
Individuals' loans for household and other personal expenditures | Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 5 | |
2020 | 223 | |
2019 | 188 | |
2018 | 40 | |
2017 | 16 | |
Prior | 25 | |
Revolving loans amortized cost basis | 1,107 | |
Revolving loans converted to term | 0 | |
Loans | 1,604 | |
Individuals' loans for household and other personal expenditures | Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
Prior | 0 | |
Revolving loans amortized cost basis | 0 | |
Revolving loans converted to term | 0 | |
Loans | 0 | |
Individuals' loans for household and other personal expenditures | Commercial Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Individuals' loans for household and other personal expenditures | Commercial Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Individuals' loans for household and other personal expenditures | Commercial Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Individuals' loans for household and other personal expenditures | Commercial Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Individuals' loans for household and other personal expenditures | Commercial Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Individuals' loans for household and other personal expenditures | Consumer Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 129,440 | |
Individuals' loans for household and other personal expenditures | Consumer Non-Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 39 | |
Public finance and other commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 172,554 | |
2020 | 189,090 | |
2019 | 101,518 | |
2018 | 39,675 | |
2017 | 108,677 | |
Prior | 133,286 | |
Revolving loans amortized cost basis | 13,898 | |
Revolving loans converted to term | 0 | |
Loans | 758,698 | 647,939 |
Public finance and other commercial loans | Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
2021 | 172,554 | |
2020 | 189,090 | |
2019 | 101,518 | |
2018 | 39,675 | |
2017 | 108,677 | |
Prior | 133,286 | |
Revolving loans amortized cost basis | 13,898 | |
Revolving loans converted to term | 0 | |
Loans | $ 758,698 | |
Public finance and other commercial loans | Commercial Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 647,939 | |
Public finance and other commercial loans | Commercial Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Public finance and other commercial loans | Commercial Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Public finance and other commercial loans | Commercial Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Public finance and other commercial loans | Commercial Loss | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Public finance and other commercial loans | Consumer Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Public finance and other commercial loans | Consumer Non-Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 0 |
Loans and Allowance - Past Due
Loans and Allowance - Past Due Aging of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Loans > 90 Days or More Past Due And Accruing | $ 183 | $ 746 |
Loans | 9,121,250 | 9,243,174 |
Commercial and industrial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans > 90 Days or More Past Due And Accruing | 0 | 594 |
Loans | 2,671,076 | 2,776,699 |
Agricultural land, production and other loans to farmers | ||
Financing Receivable, Past Due [Line Items] | ||
Loans > 90 Days or More Past Due And Accruing | 0 | 0 |
Loans | 235,020 | 281,884 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans > 90 Days or More Past Due And Accruing | 0 | 0 |
Loans | 491,200 | 484,723 |
Commercial real estate, non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans > 90 Days or More Past Due And Accruing | 0 | 0 |
Loans | 2,263,497 | 2,220,949 |
Commercial real estate, owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans > 90 Days or More Past Due And Accruing | 0 | 0 |
Loans | 953,501 | 958,501 |
Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Loans > 90 Days or More Past Due And Accruing | 183 | 133 |
Loans | 1,127,442 | 1,234,741 |
Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans > 90 Days or More Past Due And Accruing | 0 | 19 |
Loans | 489,997 | 508,259 |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Past Due [Line Items] | ||
Loans > 90 Days or More Past Due And Accruing | 0 | 0 |
Loans | 130,819 | 129,479 |
Public finance and other commercial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans > 90 Days or More Past Due And Accruing | 0 | 0 |
Loans | 758,698 | 647,939 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 9,052,818 | 9,170,399 |
Current | Commercial and industrial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2,658,952 | 2,761,473 |
Current | Agricultural land, production and other loans to farmers | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 234,432 | 280,615 |
Current | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 491,200 | 484,706 |
Current | Commercial real estate, non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2,221,577 | 2,184,681 |
Current | Commercial real estate, owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 949,949 | 951,561 |
Current | Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,121,721 | 1,226,779 |
Current | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 487,075 | 503,596 |
Current | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 129,214 | 129,049 |
Current | Public finance and other commercial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 758,698 | 647,939 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 13,007 | 19,638 |
30-59 Days Past Due | Commercial and industrial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 6,336 | 5,866 |
30-59 Days Past Due | Agricultural land, production and other loans to farmers | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 146 |
30-59 Days Past Due | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
30-59 Days Past Due | Commercial real estate, non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 39 | 2,525 |
30-59 Days Past Due | Commercial real estate, owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2,127 | 4,854 |
30-59 Days Past Due | Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2,276 | 3,269 |
30-59 Days Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 832 | 2,644 |
30-59 Days Past Due | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,397 | 334 |
30-59 Days Past Due | Public finance and other commercial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 11,634 | 11,187 |
60-89 Days Past Due | Commercial and industrial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 4,590 | 6,571 |
60-89 Days Past Due | Agricultural land, production and other loans to farmers | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 226 |
60-89 Days Past Due | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 17 |
60-89 Days Past Due | Commercial real estate, non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 5,364 | 2,109 |
60-89 Days Past Due | Commercial real estate, owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 180 |
60-89 Days Past Due | Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 347 | 1,429 |
60-89 Days Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,125 | 559 |
60-89 Days Past Due | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 208 | 96 |
60-89 Days Past Due | Public finance and other commercial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 43,791 | 41,950 |
90 Days or More Past Due | Commercial and industrial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,198 | 2,789 |
90 Days or More Past Due | Agricultural land, production and other loans to farmers | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 588 | 897 |
90 Days or More Past Due | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
90 Days or More Past Due | Commercial real estate, non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 36,517 | 31,634 |
90 Days or More Past Due | Commercial real estate, owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,425 | 1,906 |
90 Days or More Past Due | Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,098 | 3,264 |
90 Days or More Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 965 | 1,460 |
90 Days or More Past Due | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
90 Days or More Past Due | Public finance and other commercial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 0 | $ 0 |
Loans and Allowance - Summary o
Loans and Allowance - Summary of Non-Accrual Loans by Loan Class (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | $ 57,556 | $ 61,471 |
Non-Accrual Loans with no Allowance for Credit Losses | 31,264 | |
Commercial and industrial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 1,467 | 2,329 |
Non-Accrual Loans with no Allowance for Credit Losses | 781 | |
Agricultural land, production and other loans to farmers | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 682 | 1,012 |
Non-Accrual Loans with no Allowance for Credit Losses | 562 | |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 1 | 123 |
Non-Accrual Loans with no Allowance for Credit Losses | 0 | |
Commercial real estate, non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 45,437 | 46,316 |
Non-Accrual Loans with no Allowance for Credit Losses | 28,179 | |
Commercial real estate, owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 2,133 | 3,040 |
Non-Accrual Loans with no Allowance for Credit Losses | 926 | |
Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 5,552 | 6,517 |
Non-Accrual Loans with no Allowance for Credit Losses | 816 | |
Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 2,248 | 2,095 |
Non-Accrual Loans with no Allowance for Credit Losses | 0 | |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 36 | $ 39 |
Non-Accrual Loans with no Allowance for Credit Losses | $ 0 |
Loans and Allowance - Amortized
Loans and Allowance - Amortized Cost Basis Of Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | $ 57,134 | $ 56,156 | ||||||
Allowance on Collateral Dependent Loans | 199,775 | [1] | $ 201,082 | 130,648 | [1] | $ 121,119 | $ 99,454 | $ 80,284 |
Commercial and industrial loans | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 2,106 | |||||||
Agricultural land, production and other loans to farmers | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 862 | |||||||
Commercial real estate, non-owner occupied | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 47,834 | |||||||
Commercial real estate, owner occupied | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 2,942 | |||||||
Residential | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 2,981 | 3,291 | ||||||
Allowance on Collateral Dependent Loans | 0 | 0 | 21,078 | 17,364 | 14,569 | |||
Home equity | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 408 | |||||||
Individuals' loans for household and other personal expenditures | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 1 | 2 | ||||||
Allowance on Collateral Dependent Loans | 0 | $ 0 | $ 8,445 | $ 5,752 | $ 4,035 | |||
Commercial Real Estate | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 51,338 | |||||||
Commercial Real Estate | Commercial and industrial loans | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Commercial Real Estate | Agricultural land, production and other loans to farmers | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 562 | |||||||
Commercial Real Estate | Commercial real estate, non-owner occupied | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 47,834 | |||||||
Commercial Real Estate | Commercial real estate, owner occupied | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 2,942 | |||||||
Commercial Real Estate | Residential | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Commercial Real Estate | Home equity | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Commercial Real Estate | Individuals' loans for household and other personal expenditures | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Residential | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 3,389 | |||||||
Residential | Commercial and industrial loans | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Residential | Agricultural land, production and other loans to farmers | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Residential | Commercial real estate, non-owner occupied | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Residential | Commercial real estate, owner occupied | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Residential | Residential | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 2,981 | |||||||
Residential | Home equity | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 408 | |||||||
Residential | Individuals' loans for household and other personal expenditures | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Other | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 2,407 | |||||||
Other | Commercial and industrial loans | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 2,106 | |||||||
Other | Agricultural land, production and other loans to farmers | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 300 | |||||||
Other | Commercial real estate, non-owner occupied | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Other | Commercial real estate, owner occupied | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Other | Residential | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Other | Home equity | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 0 | |||||||
Other | Individuals' loans for household and other personal expenditures | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Individually evaluated for impairment | 1 | |||||||
Collateral Dependent | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Allowance on Collateral Dependent Loans | 6,426 | |||||||
Collateral Dependent | Commercial and industrial loans | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Allowance on Collateral Dependent Loans | 727 | |||||||
Collateral Dependent | Agricultural land, production and other loans to farmers | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Allowance on Collateral Dependent Loans | 117 | |||||||
Collateral Dependent | Commercial real estate, non-owner occupied | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Allowance on Collateral Dependent Loans | 4,943 | |||||||
Collateral Dependent | Commercial real estate, owner occupied | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Allowance on Collateral Dependent Loans | 238 | |||||||
Collateral Dependent | Residential | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Allowance on Collateral Dependent Loans | 334 | |||||||
Collateral Dependent | Home equity | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Allowance on Collateral Dependent Loans | 67 | |||||||
Collateral Dependent | Individuals' loans for household and other personal expenditures | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Allowance on Collateral Dependent Loans | $ 0 | |||||||
[1] | Beginning January 1, 2021, the amount is based on the current expected credit loss methodology. Prior to January 1, 2021, the amount is based on the incurred loss methodology. See additional details in NOTE 1. GENERAL of these Notes to Consolidated Condensed Financial Statement. |
Loans and Allowance - Summary_2
Loans and Allowance - Summary of Troubled Debt Restructurings by Modification Type (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Pre- Modification Recorded Balance | $ 87 | $ 1,519 | $ 1,060 | $ 1,519 |
Post - Modification Recorded Balance | $ 87 | $ 1,556 | $ 1,062 | $ 1,556 |
Number of Loans | loan | 3 | 11 | 12,000 | 11,000 |
Commercial and industrial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Pre- Modification Recorded Balance | $ 654 | $ 348 | $ 654 | |
Post - Modification Recorded Balance | $ 654 | $ 348 | $ 654 | |
Number of Loans | loan | 3 | 2,000 | 3,000 | |
Agricultural land, production and other loans to farmers | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Pre- Modification Recorded Balance | $ 458 | $ 458 | ||
Post - Modification Recorded Balance | $ 458 | $ 458 | ||
Number of Loans | loan | 1 | 1,000 | ||
Commercial real estate, owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Pre- Modification Recorded Balance | $ 21 | $ 107 | $ 21 | $ 107 |
Post - Modification Recorded Balance | $ 21 | $ 107 | $ 21 | $ 107 |
Number of Loans | loan | 1 | 1 | 1,000 | 1,000 |
Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Pre- Modification Recorded Balance | $ 66 | $ 300 | $ 691 | $ 300 |
Post - Modification Recorded Balance | $ 66 | $ 337 | $ 693 | $ 337 |
Number of Loans | loan | 2 | 6 | 9,000 | 6,000 |
Term Modification | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Post - Modification Recorded Balance | $ 66 | $ 1,219 | $ 797 | $ 1,219 |
Term Modification | Commercial and industrial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Post - Modification Recorded Balance | 654 | 348 | 654 | |
Term Modification | Agricultural land, production and other loans to farmers | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Post - Modification Recorded Balance | 458 | 458 | ||
Term Modification | Commercial real estate, owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Post - Modification Recorded Balance | 0 | 107 | 0 | 107 |
Term Modification | Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Post - Modification Recorded Balance | 66 | 0 | 449 | 0 |
Rate Modification | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Post - Modification Recorded Balance | 112 | 126 | 112 | |
Rate Modification | Commercial and industrial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Post - Modification Recorded Balance | 0 | 0 | 0 | |
Rate Modification | Agricultural land, production and other loans to farmers | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Post - Modification Recorded Balance | 0 | 0 | ||
Rate Modification | Commercial real estate, owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Post - Modification Recorded Balance | 0 | 0 | 0 | |
Rate Modification | Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Post - Modification Recorded Balance | 112 | 126 | 112 | |
Combination | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Post - Modification Recorded Balance | 21 | 225 | 139 | 225 |
Combination | Commercial and industrial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Post - Modification Recorded Balance | 0 | 0 | 0 | |
Combination | Agricultural land, production and other loans to farmers | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Post - Modification Recorded Balance | 0 | 0 | ||
Combination | Commercial real estate, owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Post - Modification Recorded Balance | 21 | 0 | 21 | 0 |
Combination | Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Post - Modification Recorded Balance | $ 0 | $ 225 | $ 118 | $ 225 |
Loans and Allowance - Schedule
Loans and Allowance - Schedule of Modified Loans (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 4 | 1 | 4 | 1 |
Recorded Balance | $ | $ 358 | $ 268 | $ 358 | $ 268 |
Commercial and industrial loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 2 | 1 | 2 | 1 |
Recorded Balance | $ | $ 163 | $ 268 | $ 163 | $ 268 |
Residential | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 2 | 2 | ||
Recorded Balance | $ | $ 195 | $ 195 |
Loans and Allowance - Changes i
Loans and Allowance - Changes in Allowance for Loan Losses by Loan Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | $ 201,082 | $ 99,454 | $ 130,648 | [1] | $ 80,284 | |
Provision for credit losses - loans | 0 | 21,895 | 0 | 41,647 | ||
Recoveries on loans | 412 | 317 | 1,106 | 990 | ||
Loans charged off | (1,719) | (547) | (6,034) | (1,802) | ||
Ending balance | 199,775 | [1] | 121,119 | 199,775 | [1] | 121,119 |
Impact of adopting ASC 326 | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 74,055 | |||||
Adjusted balance | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 204,703 | |||||
Previously reported | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 130,648 | |||||
Credit risk reclassifications | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 0 | |||||
Commercial | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 65,722 | 38,431 | 47,115 | 32,902 | ||
Provision for credit losses - loans | (1,898) | 6,240 | (2,830) | 11,941 | ||
Recoveries on loans | 152 | 106 | 340 | 549 | ||
Loans charged off | (295) | (99) | (968) | (714) | ||
Ending balance | 63,681 | 44,678 | 63,681 | 44,678 | ||
Commercial | Impact of adopting ASC 326 | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 20,024 | |||||
Commercial | Adjusted balance | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 67,139 | |||||
Commercial | Previously reported | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 47,115 | |||||
Commercial | Credit risk reclassifications | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 0 | |||||
Commercial Real Estate | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 70,861 | 37,907 | 40,786 | 28,778 | ||
Provision for credit losses - loans | 2,842 | 8,945 | 1,141 | 18,139 | ||
Recoveries on loans | 33 | 107 | 197 | 225 | ||
Loans charged off | (1,035) | (41) | (4,348) | (224) | ||
Ending balance | 72,701 | 46,918 | 72,701 | 46,918 | ||
Commercial Real Estate | Impact of adopting ASC 326 | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 34,925 | |||||
Commercial Real Estate | Adjusted balance | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 75,711 | |||||
Commercial Real Estate | Previously reported | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 51,070 | |||||
Commercial Real Estate | Credit risk reclassifications | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | (10,284) | |||||
Construction | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 20,182 | 10,284 | ||||
Provision for credit losses - loans | (3,106) | (2,011) | ||||
Recoveries on loans | 1 | 1 | ||||
Loans charged off | 0 | (2) | ||||
Ending balance | 17,077 | 17,077 | ||||
Construction | Impact of adopting ASC 326 | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 8,805 | |||||
Construction | Adjusted balance | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 19,089 | |||||
Construction | Previously reported | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 0 | |||||
Construction | Credit risk reclassifications | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 10,284 | |||||
Consumer | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 5,752 | 0 | 4,035 | |||
Provision for credit losses - loans | 2,783 | 0 | 4,707 | |||
Recoveries on loans | 56 | 0 | 98 | |||
Loans charged off | (146) | 0 | (395) | |||
Ending balance | 0 | 8,445 | 0 | 8,445 | ||
Consumer | Impact of adopting ASC 326 | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 0 | |||||
Consumer | Adjusted balance | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 0 | |||||
Consumer | Previously reported | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 9,648 | |||||
Consumer | Credit risk reclassifications | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | (9,648) | |||||
Residential | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 17,364 | 0 | 14,569 | |||
Provision for credit losses - loans | 3,927 | 0 | 6,860 | |||
Recoveries on loans | 48 | 0 | 118 | |||
Loans charged off | (261) | 0 | (469) | |||
Ending balance | 0 | $ 21,078 | 0 | $ 21,078 | ||
Residential | Impact of adopting ASC 326 | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 0 | |||||
Residential | Adjusted balance | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 0 | |||||
Residential | Previously reported | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 22,815 | |||||
Residential | Credit risk reclassifications | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | (22,815) | |||||
Consumer & Residential | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 44,317 | 32,463 | ||||
Provision for credit losses - loans | 2,162 | 3,700 | ||||
Recoveries on loans | 226 | 568 | ||||
Loans charged off | (389) | (716) | ||||
Ending balance | $ 46,316 | 46,316 | ||||
Consumer & Residential | Impact of adopting ASC 326 | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 10,301 | |||||
Consumer & Residential | Adjusted balance | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 42,764 | |||||
Consumer & Residential | Previously reported | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 0 | |||||
Consumer & Residential | Credit risk reclassifications | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | $ 32,463 | |||||
[1] | Beginning January 1, 2021, the amount is based on the current expected credit loss methodology. Prior to January 1, 2021, the amount is based on the incurred loss methodology. See additional details in NOTE 1. GENERAL of these Notes to Consolidated Condensed Financial Statement. |
Loans and Allowance - Allowance
Loans and Allowance - Allowance for Credit Losses and Loan Portfolio by Loan Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Allowance Balances: | ||
Individually evaluated for impairment | $ 12,901 | |
Collectively evaluated for impairment | 117,747 | |
Total Allowance for Loan Losses | 130,648 | |
Loan Balances: | ||
Individually evaluated for impairment | $ 57,134 | 56,156 |
Collectively evaluated for impairment | 9,180,857 | |
Financing Receivable, Evaluated for Impairment | 9,243,174 | |
Loans acquired with deteriorated credit quality | ||
Loan Balances: | ||
Financing Receivable, Evaluated for Impairment | 6,161 | |
Commercial | ||
Allowance Balances: | ||
Individually evaluated for impairment | 223 | |
Collectively evaluated for impairment | 46,892 | |
Total Allowance for Loan Losses | 47,115 | |
Loan Balances: | ||
Individually evaluated for impairment | 1,258 | |
Collectively evaluated for impairment | 3,505,863 | |
Financing Receivable, Evaluated for Impairment | 3,507,698 | |
Commercial | Loans acquired with deteriorated credit quality | ||
Loan Balances: | ||
Financing Receivable, Evaluated for Impairment | 577 | |
Commercial Real Estate | ||
Allowance Balances: | ||
Individually evaluated for impairment | 12,246 | |
Collectively evaluated for impairment | 38,824 | |
Total Allowance for Loan Losses | 51,070 | |
Loan Balances: | ||
Individually evaluated for impairment | 51,605 | |
Collectively evaluated for impairment | 3,805,808 | |
Financing Receivable, Evaluated for Impairment | 3,862,997 | |
Commercial Real Estate | Loans acquired with deteriorated credit quality | ||
Loan Balances: | ||
Financing Receivable, Evaluated for Impairment | 5,584 | |
Consumer | ||
Allowance Balances: | ||
Individually evaluated for impairment | 0 | |
Collectively evaluated for impairment | 9,648 | |
Total Allowance for Loan Losses | 9,648 | |
Loan Balances: | ||
Individually evaluated for impairment | 1 | 2 |
Collectively evaluated for impairment | 129,477 | |
Financing Receivable, Evaluated for Impairment | 129,479 | |
Residential | ||
Allowance Balances: | ||
Individually evaluated for impairment | 432 | |
Collectively evaluated for impairment | 22,383 | |
Total Allowance for Loan Losses | 22,815 | |
Loan Balances: | ||
Individually evaluated for impairment | 2,981 | 3,291 |
Collectively evaluated for impairment | 1,739,709 | |
Financing Receivable, Evaluated for Impairment | 1,743,000 | |
Residential | Loans acquired with deteriorated credit quality | ||
Loan Balances: | ||
Financing Receivable, Evaluated for Impairment | $ 0 | |
Home equity | ||
Loan Balances: | ||
Individually evaluated for impairment | $ 408 |
Loans and Allowance - Schedul_2
Loans and Allowance - Schedule of Composition of Impaired Loans by Loan Class (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | |
Unpaid Principal Balance | |||
Impaired loans with no related allowance | $ 9,101 | ||
Impaired loans with related allowance | 49,513 | ||
Total Impaired Loans | 58,614 | ||
Recorded Investment | |||
Impaired loans with no related allowance | 7,813 | ||
Impaired loans with related allowance | 48,343 | ||
Total Impaired Loans | 56,156 | ||
Related Allowance | 12,901 | ||
Average Recorded Investment | |||
Impaired loans with no related allowance | $ 12,707 | $ 12,980 | |
Impaired loans with related allowance | 32,621 | 32,882 | |
Total Impaired Loans | 45,328 | 45,862 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | 38 | 77 | |
Impaired loans with related allowance | 22 | 44 | |
Total Impaired Loans | 60 | 121 | |
Commercial and industrial loans | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 1,059 | ||
Impaired loans with related allowance | 268 | ||
Recorded Investment | |||
Impaired loans with no related allowance | 991 | ||
Impaired loans with related allowance | 268 | ||
Related Allowance | 223 | ||
Average Recorded Investment | |||
Impaired loans with no related allowance | 5,008 | 5,008 | |
Impaired loans with related allowance | 10,304 | 10,304 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | 0 | 0 | |
Impaired loans with related allowance | 0 | 0 | |
Agricultural land, production and other loans to farmers | |||
Unpaid Principal Balance | |||
Impaired loans with related allowance | 640 | ||
Recorded Investment | |||
Impaired loans with related allowance | 562 | ||
Related Allowance | 3 | ||
Commercial real estate, non-owner occupied | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 4,958 | ||
Impaired loans with related allowance | 44,016 | ||
Recorded Investment | |||
Impaired loans with no related allowance | 4,694 | ||
Impaired loans with related allowance | 43,715 | ||
Related Allowance | 11,686 | ||
Commercial real estate, owner occupied | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 2,125 | ||
Impaired loans with related allowance | 2,061 | ||
Recorded Investment | |||
Impaired loans with no related allowance | 1,310 | ||
Impaired loans with related allowance | 1,323 | ||
Related Allowance | 557 | ||
Commercial and farmland | |||
Average Recorded Investment | |||
Impaired loans with no related allowance | 7,637 | 7,910 | |
Impaired loans with related allowance | 18,910 | 19,156 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | 37 | 75 | |
Impaired loans with related allowance | 0 | 0 | |
Residential | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 957 | ||
Impaired loans with related allowance | 2,041 | ||
Recorded Investment | |||
Impaired loans with no related allowance | 816 | ||
Impaired loans with related allowance | 2,014 | ||
Related Allowance | 352 | ||
Average Recorded Investment | |||
Impaired loans with no related allowance | 59 | 59 | |
Impaired loans with related allowance | 3,020 | 3,032 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | 1 | 2 | |
Impaired loans with related allowance | 19 | 38 | |
Individuals' loans for household and other personal expenditures | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 2 | ||
Recorded Investment | |||
Impaired loans with no related allowance | 2 | ||
Average Recorded Investment | |||
Impaired loans with no related allowance | 3 | 3 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | 0 | 0 | |
Home equity | |||
Unpaid Principal Balance | |||
Impaired loans with related allowance | 487 | ||
Recorded Investment | |||
Impaired loans with related allowance | 461 | ||
Related Allowance | $ 80 | ||
Average Recorded Investment | |||
Impaired loans with related allowance | 387 | 390 | |
Interest Income Recognized | |||
Impaired loans with related allowance | $ 3 | $ 6 |
Loans and Allowance - Amounts o
Loans and Allowance - Amounts of Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Loan commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amounts of commitments | $ 3,884,912 | $ 3,443,514 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amounts of commitments | $ 32,505 | $ 29,555 |
Loans and Allowance - Allowan_2
Loans and Allowance - Allowance for Credit Losses, Off-balance Sheet (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2021USD ($) | |
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |
Balances, March 31, 2021 | $ 20,500 |
Provision for credit losses | 0 |
Balances, June 30, 2021 | $ 20,500 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Apr. 01, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Goodwill [Line Items] | |||||
Goodwill | $ 545,385 | $ 543,918 | $ 543,918 | $ 543,918 | |
Hoosier | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 1,467 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill [Roll Forward] | ||
Balance, January 1 | $ 543,918 | $ 543,918 |
Goodwill acquired | 1,467 | 0 |
Balance, June 30 | $ 545,385 | $ 543,918 |
Other Intangibles - Narrative (
Other Intangibles - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Apr. 01, 2021 | |
Indefinite-lived Intangible Assets [Line Items] | |||||
Useful life of core deposit intangibles and other intangibles | 10 years | ||||
Amortization of Intangible Assets | $ 1,464 | $ 1,511 | $ 2,821 | $ 3,025 | |
Hoosier | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Customer relationship intangible | $ 2,247 | ||||
Hoosier | Customer Relationships | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Customer relationship intangible | $ 2,247 |
Other Intangibles- Schedule of
Other Intangibles- Schedule of Core Deposit Intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross carrying amount | $ 102,396 | $ 102,396 |
Other intangibles acquired | 2,247 | 0 |
Accumulated amortization | (76,242) | (73,421) |
Total core deposit and other intangibles | $ 28,401 | $ 28,975 |
Other Intangibles - Estimated F
Other Intangibles - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Amortization Expense | ||
2021 | $ 2,927 | |
2022 | 5,402 | |
2023 | 5,145 | |
2024 | 4,510 | |
2025 | 3,754 | |
After 2025 | 6,663 | |
Total core deposit and other intangibles | $ 28,401 | $ 28,975 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2021USD ($)interest_rate_swap | Dec. 31, 2020USD ($)interest_rate_swap | |
Derivative [Line Items] | ||
Termination value of derivatives in a net liability position | $ 47.8 | |
Derivative collateral posted | 62.8 | |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Estimated amount to be transferred from accumulated other comprehensive income to earnings | 1 | |
Non-designated Hedges | ||
Derivative [Line Items] | ||
Notional amount of interest rate derivatives | $ 1,000 | $ 985 |
Cash Flow Hedging | Interest rate swap | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Number of interest rate derivatives held | interest_rate_swap | 4 | 4 |
Notional amount of interest rate derivatives | $ 60 | $ 60 |
Cash Flow Hedging | Interest rate swap | Trust Preferred Debt | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount of interest rate derivatives | 26 | |
Cash Flow Hedging | Interest rate swap | Federal Home Loan Bank advances | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount of interest rate derivatives | 10 | |
Cash Flow Hedging | Interest rate swap | Brokered Deposit | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount of interest rate derivatives | $ 24 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value of Derivative Financial Instruments and Their Classification on Balance Sheet (Details) - Interest rate contracts - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 0 | $ 0 |
Derivatives designated as hedging instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 1,464 | 2,018 |
Derivatives not designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 51,845 | 74,335 |
Derivatives not designated as hedging instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 51,845 | $ 74,335 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effect of Derivative Financial Instruments on Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | $ (16) | $ (145) | $ 42 | $ (1,459) |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Products | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | $ (16) | $ (145) | $ 42 | $ (1,459) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Effect of Derivative Financial Instruments on Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative [Line Items] | ||||
Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion) | $ (260) | $ (231) | $ (513) | $ (357) |
Interest rate contracts | Derivatives designated as hedging instruments | Interest Expense | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Reclassed from Other Comprehensive Income into Income (Effective Portion) | $ (260) | $ (231) | $ (513) | $ (357) |
Disclosures About Fair Value _3
Disclosures About Fair Value of Assets and Liabilities - Fair Value Measurements of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | $ 2,426,900 | $ 1,919,119 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 2,421,105 | 1,916,640 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 5,795 | 2,479 |
Recurring | Interest rate swap liability | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap liability | 53,309 | 76,353 |
Recurring | U.S. Treasury | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 1,000 | |
Recurring | U.S. Government-sponsored agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 11,541 | 2,430 |
Recurring | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 1,451,845 | 1,257,885 |
Recurring | U.S. Government-sponsored mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 958,286 | 654,669 |
Recurring | Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 4,228 | 4,135 |
Recurring | Interest rate swap asset | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap asset | 51,845 | 74,335 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swap liability | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap liability | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government-sponsored agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government-sponsored mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swap asset | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap asset | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swap liability | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap liability | 53,309 | 76,353 |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 1,000 | |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 11,541 | 2,430 |
Recurring | Significant Other Observable Inputs (Level 2) | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 1,446,085 | 1,255,441 |
Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 958,282 | 654,665 |
Recurring | Significant Other Observable Inputs (Level 2) | Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 4,197 | 4,104 |
Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swap asset | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap asset | 51,845 | 74,335 |
Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swap liability | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap liability | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government-sponsored agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 5,760 | 2,444 |
Recurring | Significant Unobservable Inputs (Level 3) | U.S. Government-sponsored mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 4 | 4 |
Recurring | Significant Unobservable Inputs (Level 3) | Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 31 | 31 |
Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swap asset | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap asset | $ 0 | $ 0 |
Disclosures About Fair Value _4
Disclosures About Fair Value of Assets and Liabilities - Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements using Significant Unobservable Level 3 Inputs (Details) - Recurring - Available for Sale Securities - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Available for Sale Securities | ||||
Balance at beginning of the period | $ 2,146 | $ 2,528 | $ 2,479 | $ 2,892 |
Included in other comprehensive income | 412 | (30) | 353 | (50) |
Purchases, issuances and settlements | 3,241 | 0 | 3,241 | 0 |
Principal payments | (4) | 2 | (278) | (342) |
Ending balance | $ 5,795 | $ 2,500 | $ 5,795 | $ 2,500 |
Disclosures About Fair Value _5
Disclosures About Fair Value of Assets and Liabilities - Valuation Methodologies Used for Instruments Measured at Fair Value on Non-Recurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Collateral dependent loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | $ 43,292 | $ 37,250 |
Collateral dependent loans | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 0 | 0 |
Collateral dependent loans | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 0 | 0 |
Collateral dependent loans | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 43,292 | 37,250 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 167 | 544 |
Other real estate owned | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 0 | 0 |
Other real estate owned | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 0 | 0 |
Other real estate owned | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | $ 167 | $ 544 |
Disclosures About Fair Value _6
Disclosures About Fair Value of Assets and Liabilities - Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Other Than Goodwill (Details) - Significant Unobservable Inputs (Level 3) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
State and municipal securities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 5,760 | $ 2,444 |
State and municipal securities | Discounted cash flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Maturity/Call date | 1 month | 1 month |
US Muni BQ curve | BBB- | BBB- |
State and municipal securities | Discounted cash flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Maturity/Call date | 15 years | 15 years |
US Muni BQ curve | A- | A- |
State and municipal securities | Discounted cash flow | Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 0.0075 | 0.0150 |
State and municipal securities | Discounted cash flow | Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 0.04 | 0.04 |
State and municipal securities | Discounted cash flow | Weighted-average coupon | Weighted-average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 0.04 | 0.04 |
Corporate obligations and U.S. Government-sponsored mortgage-backed securities | Discounted cash flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 35 | $ 35 |
Corporate obligations and U.S. Government-sponsored mortgage-backed securities | Discounted cash flow | Weighted-average coupon | Weighted-average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 0 | 0 |
Corporate obligations and U.S. Government-sponsored mortgage-backed securities | Discounted cash flow | Risk free rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Risk free rate | 3 month LIBOR | 3 month LIBOR |
Corporate obligations and U.S. Government-sponsored mortgage-backed securities | Discounted cash flow | plus premium for illiquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 0.02 | 0.02 |
Collateral dependent loans | Collateral based measurements | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 43,292 | $ 37,250 |
Collateral dependent loans | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 0 | 0 |
Collateral dependent loans | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 0.10 | 0.10 |
Collateral dependent loans | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | Weighted-average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 0.03 | 0.06 |
Other real estate owned | Appraisals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 167 | $ 544 |
Other real estate owned | Appraisals | Discount to reflect current market conditions | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned | 0 | 0 |
Other real estate owned | Appraisals | Discount to reflect current market conditions | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned | 0.72 | 0.30 |
Other real estate owned | Appraisals | Discount to reflect current market conditions | Weighted-average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other real estate owned | 0.39 | 0.26 |
Disclosures About Fair Value _7
Disclosures About Fair Value of Assets and Liabilities - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Investment securities available for sale | $ 2,426,900 | $ 1,919,119 |
Investment securities held to maturity | 1,760,847 | 1,280,293 |
Loans held for sale | 18,582 | 3,966 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 167,596 | 192,896 |
Interest-bearing deposits | 438,863 | 392,305 |
Investment securities available for sale | 0 | 0 |
Investment securities held to maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Interest rate swap asset | 0 | 0 |
Interest receivable | 0 | 0 |
Liabilities: | ||
Deposits | 11,419,155 | 10,482,865 |
Borrowings: | ||
Securities sold under repurchase agreements | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debentures and other borrowings | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Interest payable | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Investment securities available for sale | 2,421,105 | 1,916,640 |
Investment securities held to maturity | 1,745,282 | 1,260,815 |
Loans held for sale | 18,582 | 3,966 |
Loans, net | 0 | 0 |
Federal Home Loan Bank stock | 28,736 | 28,736 |
Interest rate swap asset | 51,845 | 74,335 |
Interest receivable | 54,173 | 53,948 |
Liabilities: | ||
Deposits | 782,802 | 878,257 |
Borrowings: | ||
Securities sold under repurchase agreements | 146,900 | 177,097 |
Federal Home Loan Bank advances | 340,783 | 399,991 |
Subordinated debentures and other borrowings | 107,751 | 108,439 |
Interest rate swap liability | 53,309 | 76,353 |
Interest payable | 2,929 | 3,287 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Investment securities available for sale | 5,795 | 2,479 |
Investment securities held to maturity | 15,565 | 19,478 |
Loans held for sale | 0 | 0 |
Loans, net | 8,976,919 | 9,191,628 |
Federal Home Loan Bank stock | 0 | 0 |
Interest rate swap asset | 0 | 0 |
Interest receivable | 0 | 0 |
Liabilities: | ||
Deposits | 0 | 0 |
Borrowings: | ||
Securities sold under repurchase agreements | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debentures and other borrowings | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Interest payable | 0 | 0 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | 167,596 | 192,896 |
Interest-bearing deposits | 438,863 | 392,305 |
Investment securities available for sale | 2,426,900 | 1,919,119 |
Investment securities held to maturity | 1,721,414 | 1,227,668 |
Loans held for sale | 18,582 | 3,966 |
Loans, net | 8,921,475 | 9,112,526 |
Federal Home Loan Bank stock | 28,736 | 28,736 |
Interest rate swap asset | 51,845 | 74,335 |
Interest receivable | 54,173 | 53,948 |
Liabilities: | ||
Deposits | 12,203,400 | 11,361,610 |
Borrowings: | ||
Securities sold under repurchase agreements | 146,904 | 177,102 |
Federal Home Loan Bank advances | 334,243 | 389,430 |
Subordinated debentures and other borrowings | 118,498 | 118,380 |
Interest rate swap liability | 53,309 | 76,353 |
Interest payable | $ 2,929 | $ 3,287 |
Transfers Accounted for as Se_3
Transfers Accounted for as Secured Borrowings (Details) - U.S. Government-sponsored mortgage-backed securities - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | $ 146,904 | $ 177,102 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | 145,249 | 175,449 |
Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | 800 | 0 |
30-90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | 0 | 1,653 |
Greater Than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged for all repurchase agreements accounted for as secured borrowings | $ 855 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | $ 1,875,645 | $ 1,786,437 |
Other comprehensive income (loss) before reclassifications | (12,349) | 41,756 |
Amounts reclassified from accumulated other comprehensive income | (2,407) | (5,785) |
Total other comprehensive income (loss), net of tax | (14,756) | 35,971 |
Ending balance | 1,871,800 | 1,809,095 |
Total | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | 74,836 | 27,874 |
Ending balance | 60,080 | 63,845 |
Unrealized Gains (Losses) on Securities Available for Sale | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | 87,988 | 38,872 |
Other comprehensive income (loss) before reclassifications | (12,382) | 42,909 |
Amounts reclassified from accumulated other comprehensive income | (2,812) | (6,067) |
Total other comprehensive income (loss), net of tax | (15,194) | 36,842 |
Ending balance | 72,794 | 75,714 |
Unrealized Gains (Losses) on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (1,594) | (1,141) |
Other comprehensive income (loss) before reclassifications | 33 | (1,153) |
Amounts reclassified from accumulated other comprehensive income | 405 | 282 |
Total other comprehensive income (loss), net of tax | 438 | (871) |
Ending balance | (1,156) | (2,012) |
Unrealized Gains (Losses) on Defined Benefit Plans | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (11,558) | (9,857) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Total other comprehensive income (loss), net of tax | 0 | 0 |
Ending balance | $ (11,558) | $ (9,857) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains on sales of available for sale securities | $ 1,761 | $ 3,068 | $ 3,560 | $ 7,680 |
Interest expense - subordinated debentures and term loans | 1,659 | 1,639 | 3,316 | 3,584 |
Income tax expense | (10,294) | (4,623) | (19,246) | (8,113) |
Total reclassifications for the period, net of tax | 55,559 | 32,992 | 105,028 | 67,255 |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the Period | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period, net of tax | 1,186 | 2,242 | 2,407 | 5,785 |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the Period | Unrealized gains (losses) on available for sale securities | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains on sales of available for sale securities | 1,761 | 3,068 | 3,560 | 7,680 |
Income tax expense | (370) | (644) | (748) | (1,613) |
Total reclassifications for the period, net of tax | 1,391 | 2,424 | 2,812 | 6,067 |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the Period | Unrealized gains (losses) on cash flow hedges | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | 55 | 49 | 108 | 75 |
Total reclassifications for the period, net of tax | (205) | (182) | (405) | (282) |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the Period | Unrealized gains (losses) on cash flow hedges | Interest rate contracts | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense - subordinated debentures and term loans | $ (260) | $ (231) | $ (513) | $ (357) |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | Apr. 01, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of average closing price to be paid by employees | 85.00% | ||||
Maximum common stock purchases through advance payroll deductions in a calendar year | $ 25,000 | ||||
Share-based compensation | $ 1,208,000 | $ 1,214,000 | $ 2,398,000 | $ 2,433,000 | |
Forfeiture rate | 0.50% | ||||
Unrecognized compensation expense related to stock options | 0 | $ 0 | |||
Aggregate intrinsic value of stock options exercised | 559,000 | 197,000 | |||
Cash receipts of stock options exercised | $ 198,000 | $ 83,000 | |||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option term | 10 years | ||||
Stock options vesting percentage | 100.00% | ||||
Stock Options | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested period | 1 year | ||||
Stock Options | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested period | 2 years | ||||
RSAs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested period | 3 years | ||||
Unrecognized compensation expense related to RSAs | 7,500,000 | $ 7,500,000 | |||
Unrecognized compensation expense expected recognition period | 1 year 9 months 14 days | ||||
ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense related to stock options | $ 0 | $ 0 | |||
Grant date fair value of ESPP options | $ 40,000 |
Share-Based Compensation - Comp
Share-Based Compensation - Components of Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-tax compensation expense | $ 1,208 | $ 1,214 | $ 2,398 | $ 2,433 |
Income tax expense (benefit) | (266) | (265) | (575) | (522) |
Total share-based compensation expense, net of income taxes | 942 | 949 | 1,823 | 1,911 |
Stock and ESPP Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-tax compensation expense | 40 | 12 | 115 | 53 |
Income tax expense (benefit) | (20) | (29) | (92) | (29) |
Total share-based compensation expense, net of income taxes | 20 | (17) | 23 | 24 |
Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-tax compensation expense | 1,168 | 1,202 | 2,283 | 2,380 |
Income tax expense (benefit) | (246) | (236) | (483) | (493) |
Total share-based compensation expense, net of income taxes | $ 922 | $ 966 | $ 1,800 | $ 1,887 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) - USD ($) | 6 Months Ended |
Jun. 30, 2021 | |
Number of Shares | |
Beginning balance (in shares) | 45,800 |
Exercised (in shares) | (17,300) |
Ending balance (in shares) | 28,500 |
Vested and expected to vest (in shares) | 28,500 |
Exercisable (in shares) | 28,500 |
Weighted-Average Exercise Price | |
Beginning balance (in dollars per share) | $ 15 |
Exercised (in dollars per share) | 11.46 |
Ending balance (in dollars per share) | 17.14 |
Vested and expected to vest, weighted-average exercise price (in dollars per share) | 17.14 |
Exercisable, weighted-average exercise price (in dollars per share) | $ 17.14 |
Weighted Average Remaining Contractual Term (in Years) | |
Outstanding | 2 years |
Vested and expected to vest | 2 years |
Exercisable | 2 years |
Aggregate Intrinsic Value | |
Outstanding | $ 699,060 |
Vested and expected to vest | 699,060 |
Exercisable | $ 699,060 |
Share-Based Compensation - Unve
Share-Based Compensation - Unvested RSAs Outstanding (Details) - RSAs | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Number of Shares | |
Unvested RSAs, Beginning balance (in shares) | shares | 357,883 |
Granted (in shares) | shares | 77,216 |
Vested (in shares) | shares | (4,660) |
Forfeited (in shares) | shares | (5,050) |
Unvested RSAs, Ending balance (in shares) | shares | 425,389 |
Weighted-Average Grant Date Fair Value | |
Unvested RSAs, Beginning balance (in dollars per share) | $ / shares | $ 36.30 |
Granted (in dollars per share) | $ / shares | 42.52 |
Vested (in dollars per share) | $ / shares | 42.14 |
Forfeited (in dollars per share) | $ / shares | 36.56 |
Unvested RSAs, Ending balance (in dollars per share) | $ / shares | $ 37.36 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reconciliation of Federal Statutory to Actual Tax Expense: | ||||
Federal statutory income tax at 21% | $ 13,830 | $ 7,899 | $ 26,098 | $ 15,827 |
Tax-exempt interest income | (3,893) | (3,199) | (7,599) | (6,221) |
Share-based compensation | (13) | (6) | (72) | (6) |
Tax-exempt earnings and gains on life insurance | (253) | (278) | (534) | (564) |
Tax credits | (77) | (89) | (150) | (150) |
CARES Act - NOL carryback rate differential | 0 | 0 | 0 | (1,178) |
State Income Tax | 872 | 164 | 1,574 | 250 |
Other | (172) | 132 | (71) | 155 |
Actual Tax Expense | $ 10,294 | $ 4,623 | $ 19,246 | $ 8,113 |
Effective Tax Rate | 15.60% | 12.30% | 15.50% | 10.80% |
Net Income Per Share - Reconcil
Net Income Per Share - Reconciliation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net Income | ||||
Net income available to common stockholders | $ 55,559 | $ 32,992 | $ 105,028 | $ 67,255 |
Diluted net income per share | $ 55,559 | $ 32,992 | $ 105,028 | $ 67,255 |
Weighted-Average Shares | ||||
Net income available to common stockholders (in shares) | 53,956,296 | 53,762,913 | 53,943,248 | 54,247,493 |
Effect of potentially dilutive stock options and restricted stock awards (in shares) | 228,128 | 179,654 | 216,084 | 182,026 |
Diluted net income per share (in shares) | 54,184,424 | 53,942,567 | 54,159,332 | 54,429,519 |
Per Share Amount | ||||
Net income available to common stockholders (in dollars per share) | $ 1.03 | $ 0.62 | $ 1.95 | $ 1.24 |
Diluted net income per share (in dollars per share) | $ 1.03 | $ 0.62 | $ 1.94 | $ 1.24 |
Net Income Per Share - Narrativ
Net Income Per Share - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Stock options not included in the earnings per share calculation (in shares) | 0 | 0 | 0 | 0 |