Alerus Financial (ALRS) 10-K 26 Mar 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2019	Mar. 16, 2020	Jun. 28, 2019
Document and Entity Information
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Entity Registrant Name	ALERUS FINANCIAL CORPORATION
Entity Well Known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,105,668
Entity Public Float			$ 234,790,674
Entity Central Index Key	0000903419
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 144,006	$ 40,651
Trading		1,539
Available-for-sale	310,350	250,174
Equity	2,808	3,165
Loans held for sale	46,846	14,486
Loans held for branch sale		32,031
Loans	1,721,279	1,701,850
Allowance for loan losses	(23,924)	(22,174)
Net loans	1,697,355	1,679,676
Land, premises and equipment, net	20,629	21,743
Operating lease right-of-use assets	8,343
Accrued interest receivable	7,551	7,645
Bank-owned life insurance	31,566	30,763
Goodwill	27,329	27,329
Other intangible assets	18,391	22,473
Servicing rights	3,845	4,623
Deferred income taxes, net	7,891	10,085
Other assets	29,968	32,687
Total assets	2,356,878	2,179,070
Deposits
Noninterest-bearing	577,704	550,640
Interest-bearing	1,393,612	1,224,456
Total deposits	1,971,316	1,775,096
Deposits held for sale		24,197
Short-term borrowings		93,460
Long-term debt	58,769	58,824
Operating lease liabilities	8,864
Accrued expenses and other liabilities	32,201	30,539
Total liabilities	2,071,150	1,982,116
Commitments and contingent liabilities ESOP-owned shares		34,494
Stockholders’ equity
Preferred stock, $1 par value, 2,000,000 shares authorized: 0 issued and outstanding
Common stock, $1 par value, 30,000,000 shares authorized: 17,049,551 and 13,775,327 issued and outstanding	17,050	13,775
Additional paid-in capital	88,650	27,743
Retained earnings	178,092	159,037
Accumulated other comprehensive income (loss)	1,936	(3,601)
Total stockholders’ equity	285,728	196,954
Less ESOP-owned shares		(34,494)
Total stockholders’ equity net ESOP-owned shares	285,728	162,460
Total liabilities and stockholders’ equity	$ 2,356,878	$ 2,179,070

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Consolidated Balance Sheets
Preferred stock, par value	$ 1	$ 1
Preferred Stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	17,049,551	13,775,327
Common stock, shares outstanding	17,049,551	13,775,327

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Interest Income
Loans, including fees	$ 85,830	$ 81,159	$ 68,799
Investment securities - Taxable	5,576	4,670	4,773
Investment securities -Exempt from federal income taxes	798	1,234	1,356
Other	1,096	639	709
Total interest income	93,300	87,702	75,637
Interest Expense
Deposits	13,334	6,991	3,520
Short-term borrowings	1,805	1,896	942
Long-term debt	3,610	3,591	3,505
Total interest expense	18,749	12,478	7,967
Net interest income	74,551	75,224	67,670
Provision for loan losses	7,312	8,610	3,280
Net interest income after provision for loan losses	67,239	66,614	64,390
Noninterest Income
Retirement and benefit services	63,811	63,316	62,390
Wealth management	15,502	14,900	13,953
Mortgage banking	25,805	17,630	19,748
Service charges on deposit accounts	1,772	1,808	1,854
Net gains (losses) on investment securities	357	85	(13)
Other	6,947	5,010	5,113
Total noninterest income	114,194	102,749	103,045
Noninterest Expense
Compensation	74,018	69,403	67,576
Employee taxes and benefits	19,456	17,866	16,490
Occupancy and equipment expense	10,751	11,086	10,892
Business services, software and technology expense	16,381	14,525	12,976
Intangible amortization expense	4,081	4,638	5,623
Professional fees and assessments	4,011	5,098	6,158
Marketing and business development	3,162	3,459	3,271
Supplies and postage	2,722	2,737	2,609
Travel	1,787	1,738	1,530
Mortgage and lending expenses	2,853	2,153	2,235
Other	3,315	3,622	5,560
Total noninterest expense	142,537	136,325	134,920
Income before income taxes	38,896	33,038	32,515
Income tax expense	9,356	7,172	17,514
Net income	$ 29,540	$ 25,866	$ 15,001
Basic earnings per common share	$ 1.96	$ 1.88	$ 1.10
Diluted earnings per common share	1.91	1.84	1.07
Dividends declared per common share	$ 0.57	$ 0.53	$ 0.48
Average common shares outstanding	14,736	13,763	13,653
Diluted average common shares outstanding	15,093	14,063	14,007

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Consolidated Statements of Comprehensive Income
Net Income	$ 29,540	$ 25,866	$ 15,001
Other Comprehensive Income, Net of Tax
Unrealized gains (losses) on available-for-sale securities	7,751	(3,277)	1,542
Reclassification adjustment for losses (gains) realized in income	(357)	(116)
Total other comprehensive income (loss), before tax	7,394	(3,393)	1,542
Income tax expense (benefit) related to items of other comprehensive income	1,857	(852)	735
Other comprehensive income (loss), net of tax	5,537	(2,541)	807
Total comprehensive income	$ 35,077	$ 23,325	$ 15,808

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders Equity - USD ($) $ in Thousands	Common Stock	Additional Paid in Capital.	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	ESOP – Owned Shares	Total
Beginning balance at Dec. 31, 2016	$ 13,534	$ 23,882	$ 132,773	$ (1,938)	$ (29,035)	$ 139,216
Net Income			15,001			15,001
Other comprehensive income (loss)			172	807		979
Common stock repurchased	(16)	(47)	(231)			(294)
Common stock dividends			(6,729)			(6,729)
Initial public offering of 3,289,000 shares of common stock net of issuance costs	64	1,384			(1,442)	6
Net change in fair value of ESOP shares					(1,014)	(1,014)
Share-based compensation expense	17	921				938
Vesting of restricted stock	100	(100)
Ending balance at Dec. 31, 2017	13,699	26,040	140,986	(1,131)	(31,491)	148,103
Adjustment for adoption of ASU 2016-01			(71)	71
Net Income			25,866			25,866
Other comprehensive income (loss)				(2,541)		(2,541)
Common stock repurchased	(15)	(53)	(288)			(356)
Common stock dividends			(7,456)			(7,456)
Net change in fair value of ESOP shares					(3,003)	(3,003)
Share-based compensation expense	11	1,836				1,847
Vesting of restricted stock	80	(80)
Ending balance at Dec. 31, 2018	13,775	27,743	159,037	(3,601)	(34,494)	162,460
Net Income			29,540			29,540
Other comprehensive income (loss)				5,537		5,537
Common stock repurchased	(81)	(291)	(1,576)			(1,948)
Common stock dividends			(8,909)			(8,909)
ESOP repurchase obligation termination					$ 34,494	34,494
Initial public offering of 3,289,000 shares of common stock net of issuance costs	3,289	59,515				62,804
Share-based compensation expense	13	1,737				1,750
Vesting of restricted stock	54	(54)
Ending balance at Dec. 31, 2019	$ 17,050	$ 88,650	$ 178,092	$ 1,936		$ 285,728

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders Equity (Parenthetical)	12 Months Ended
	Dec. 31, 2019shares
Consolidated Statements of Changes in Stockholders’ Equity
IPO common stock net of issuance costs	3,289,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating Activities
Net income	$ 29,540	$ 25,866	$ 15,001
Adjustments to reconcile net income to net cash provided (used) by operating activities
Deferred income taxes	337	(20)	9,745
Provision for loan losses	7,312	8,610	3,280
Provision for foreclosed asset losses		245	425
Depreciation and amortization	8,768	8,729	9,856
Amortization and accretion of premiums/discounts on investment securities	1,127	1,570	2,069
Stock-based compensation	1,750	1,847	938
Increase in value of bank-owned life insurance	(803)	(804)	(820)
Realized loss (gain) on sale of branch	(1,544)
Realized loss (gain) on sale of fixed assets	(541)	(11)	154
Realized loss (gain) on forward sale derivatives	(7)	15	97
Realized loss (gain) on rate lock commitments	12	(14)	(70)
Realized loss (gain) on sale of foreclosed assets	(122)	(114)	38
Realized loss (gain) on sale of investment securities	(357)	(129)
Realized loss (gain) on servicing rights	(209)	(577)	(743)
Net change in:
Securities held for trading	1,539	406	14
Loans held for sale	(32,360)	3,452	17,125
Accrued interest receivable	12	(828)	(898)
Other assets	2,511	4,478	(1,693)
Accrued expenses and other liabilities	2,283	832	(6,628)
Net cash provided (used) by operating activities	19,248	53,553	47,890
Investing Activities
Proceeds from sales of investment securities available-for-sale	32,565	6,488
Proceeds from maturities of investment securities available-for-sale	37,109	35,082	42,257
Purchases of investment securities available-for-sale	(123,226)	(29,556)	(38,226)
Net (increase) decrease in equity securities	357	2,280	313
Net (increase) decrease in loans	(21,898)	(163,156)	(210,286)
Payment to FDIC for termination of loss share agreements		(3,000)
Proceeds from sale of branch	10,379
Proceeds from sale of fixed assets	875	11	2,390
Purchases of premises and equipment	(2,901)	(3,753)	(2,946)
Proceeds from sales of foreclosed assets	1,146	896	1,405
Net cash provided (used) by investing activities	(65,594)	(154,708)	(205,093)
Financing Activities
Net increase (decrease) in deposits	191,444	(35,669)	49,754
Net increase (decrease) in short-term borrowings	(93,460)	63,460	29,271
Repayments of long-term debt	(230)	(171)	(168)
Cash dividends paid on common stock	(8,909)	(7,456)	(6,729)
Repurchase of common stock	(1,948)	(356)	(294)
Proceeds from the issuance of common stock in initial public offering net of issuance costs	62,804
Net cash provided (used) by financing activities	149,701	19,808	71,834
Net change in cash and cash equivalents	103,355	(81,347)	(85,369)
Cash and cash equivalents at beginning of period	40,651	121,998	207,367
Cash and cash equivalents at end of period	144,006	40,651	121,998
Cash paid for:
Interest	18,431	12,315	8,026
Income taxes	7,219	5,347	13,074
Non-cash information
Loan collateral transferred to foreclosed assets	828	748	433
Unrealized gain (loss) on investment securities available-for-sale	5,537	(2,541)	807
Initial recognition of operating lease right-of-use assets	10,485
Initial recognition of operating lease liabilities	11,006
Change in fair value of ESOP shares	$ (34,494)	3,003	$ 1,014
Loans transferred to held for sale		32,031
Deposits transferred to held for sale		$ (24,197)

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Significant Accounting Policies
Significant Accounting Policies	NOTE 1 Significant Accounting Policies Alerus Financial Corporation is a financial holding company organized under the laws of Delaware. Alerus Financial Corporation and its subsidiaries, or the Company is a diversified financial services company headquartered in Grand Forks, North Dakota. Through its subsidiary, Alerus Financial, National Association, or the Bank, the Company provides innovative and comprehensive financial solutions to businesses and consumers through four distinct business lines – banking, retirement and benefit services, wealth management, and mortgage. The Bank operates under a national charter and provides full banking services. As a national bank, the Bank is subject to regulation by the Office of the Comptroller of Currency and the Federal Deposit Insurance Corporation. Initial Public Offering On September 17, 2019, the Company sold 2,860,000 shares of common stock in its initial public offering. On September 25, 2019, the Company sold an additional 429,000 shares of common stock pursuant to the exercise in full, by the underwriters, of their option to purchase additional shares. The aggregate offering price for the shares sold by the Company was $69.1 million, and after deducting $4.7 million of underwriting discounts and $1.6 million of offering expenses paid to third parties, the Company received total net proceeds of $62.8 million. Policies which materially affect the determination of financial position, cash flows, and results of operations are summarized below. Principles of Consolidation The consolidated financial statements include the accounts of Alerus Financial Corporation and its subsidiaries in which Alerus Financial Corporation has a controlling interest. Significant intercompany balances and transactions have been eliminated in consolidation. In the normal course of business, the Company may enter into a transaction with a variable interest entity, or VIE. VIE’s are legal entities whose investors lack the ability to make decisions about the entity’s activities, or whose equity investors do not have the right to receive the residual returns of the entity. The applicable accounting guidance requires the Company to perform ongoing quantitative and qualitative analysis to determine whether it must consolidate any VIE. The Company does not have any ownership interest in or exert any control over any VIE, and thus no VIE’s are included in the consolidated financial statements. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the valuation of investment securities, determination of the allowance for loan losses, valuation of reporting units for the purpose of testing goodwill and other intangible assets for impairment, valuation of deferred tax assets, and fair values of financial instruments. Emerging Growth Company The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the “JOBS Act”, and may take advantage of certain exemptions from various reporting requirements that are applicable to public companies that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. In addition, even if the Company complies with the greater obligations of public companies that are not emerging growth companies, the Company may avail itself of the reduced requirements applicable to emerging growth companies from time to time in the future, so long as the Company is an emerging growth company. The Company will continue to be an emerging growth company until the earliest to occur of: (1) the end of the fiscal year following the fifth anniversary of the date of the first sale of common equity securities under the Company’s Registration Statement on Form S-1, which was declared effective by the U.S. Securities and Exchange Commission, or SEC, on September 12, 2019; (2) the last day of the fiscal year in which the Company has $1.07 billion or more in annual revenues; (3) the date on which the Company is deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended, or the Exchange Act; or (4) the date on which the Company has, during the previous three-year period, issued publicly or privately, more than $1.0 billion in non-convertible debt securities. Management cannot predict if investors will find the Company’s common stock less attractive because it will rely on the exemptions. If some investors find the Company’s common stock less attractive as a result, there may be a less active trading market for its common stock and the Company’s stock price may be more volatile. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933 for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company elected to take advantage of the benefits of this extended transition period. Concentrations of Credit Risk Substantially all of the Company’s lending activities are with clients located within North Dakota, Minnesota, and Arizona. At December 31, 2019 and 2018 respectively, 27.8% and 30.0% of the Company’s loan portfolio consisted of commercial and industrial loans that were not secured by real estate. The Company does not have any significant loan concentrations in any one industry or client. Note 5 discusses the Company’s loan portfolio. The Company invests in a variety of investment securities and does not have any significant concentrations in any one industry or to any one issuer. Note 4 discusses the Company’s investment securities portfolio. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, cash and due from banks includes cash and cash equivalents, balances due from banks, and federal funds sold, all of which have an original maturity within 90 days. Cash flows from loans and deposits are reported net. Interest‑bearing deposits in banks are carried at cost. Investment Securities Debt securities that are held for short‑term resale are classified as trading securities and carried at estimated fair value, with increases and decreases in estimated fair value recognized in net gains (losses) on investment securities within the statements of income. Other marketable securities are classified as available‑for‑sale and are carried at estimated fair value. Realized gains (losses) on investment securities available‑for‑sale are included in net gains (losses) on investment securities and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. Gains (losses) on sales of investment securities are determined using the specific identification method on the trade date. The amortization of premiums and accretion of discounts are recognized in interest income using methods approximating the interest method over the period to maturity. Declines in the estimated fair value of individual available‑for‑sale investment securities below their cost that are other than temporary, result in write‑downs of the individual investment securities to their estimated fair value. The Company monitors the investment security portfolio for impairment on an individual security basis and has a process in place to identify investment securities that could potentially have a credit impairment that is other than temporary. This process involves analyzing the length of time and the extent to which the estimated fair value has been less than the amortized cost basis, the market liquidity for the security, the financial condition and near‑term prospects of the issuer, expected cash flows, and the Company’s intent and ability to hold the investment for a period of time sufficient to recover the temporary loss. The ability to hold is determined by whether it is more likely than not that the Company will be required to sell the security before its anticipated recovery. A decline in value due to a credit event that is considered other than temporary is recorded as a loss in noninterest income. Equity investments for which readily determinable values are unavailable are carried at cost in other assets on the consolidated balance sheet. Nonmarketable Equity Securities Nonmarketable equity securities include the Bank’s required investments in the stock of the Federal Home Loan Bank of Des Moines, or the FHLB and the Federal Reserve Bank, or the FRB. The Bank is a member of the FHLB as well as its regional FRB. Members are required to own a certain amount of stock based of the level of borrowing and other factors, and may invest in additional amounts. FHLB stock and FRB stock are carried at cost, classified as other assets, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Loans Held for Sale/Branch Sale Loans originated and intended for sale in the secondary market or loans transferred to held for branch sale are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses are recognized through a valuation allowance by charges to income. Gains (losses) on loan sales are recorded in mortgage banking revenue on the consolidated statements of income. Refer to Note 29 (Branch Sale) for additional details on loans held for branch sale. Loans Loans are stated at the amount of unpaid principal, reduced by an allowance for loan losses. Loans that management has the intent and ability to hold for the foreseeable future, until maturity or pay‑off, generally are reported at their outstanding unpaid principal balances adjusted for charge‑offs, and the allowance for loan losses. Loan fees received that are associated with originating or acquiring certain loans are deferred, net of costs, and amortized over the life of the loan as a yield adjustment to interest income. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well‑secured and in process of collection. Consumer loans are typically charged‑off no later than 120 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged‑off at an earlier date if collection of principal or interest in considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged‑off is reversed against interest income. The interest on these loans is accounted for on the cash‑basis or cost‑recovery method until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses The allowance for loan losses (allowance) is an estimate of loan losses inherent in the Company’s loan portfolio. The allowance is established through a provision for loan losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after loan losses and loan growth. Loan losses are charged‑off against the allowance when the Company determines the loan balance to be uncollectible. Cash received on previously charged‑off amounts is recorded as a recovery to the allowance. The allowance consists of three primary components, general reserves, specific reserves related to impaired loans, and unallocated reserves. The general component covers non‑impaired loans and is based on historical losses adjusted for current qualitative factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent five years. This actual loss experience is adjusted for economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge‑offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. These factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans determined to be impaired are individually evaluated for impairment. When a loan is impaired, the Company measures impairment based on the present value of expected future cash flows discounted at the original contractual interest rate, except that as a practical expedient, it may measure impairment based on an observable market price for the estimated fair value of the collateral if collateral dependent. A loan is collateral dependent if the repayment is expected to be provided solely by the underlying collateral. Allowance allocations other than general and specific are included in the unallocated portion. While allocations are made for loans based upon historical loss analysis, the unallocated portion is designed to cover the uncertainty of how current economic conditions and other uncertainties may impact the existing loan portfolio. Factors to consider include national and state economic conditions such as unemployment or real estate lending values. The unallocated reserve addresses inherent probable losses not included elsewhere in the allowance for loan losses. The Company maintains a separate general valuation allowance for each portfolio segment. These portfolio segments include commercial and industrial, real estate construction, commercial real estate, residential real estate first mortgage, residential real estate junior liens, and other revolving and installment with risk characteristics described as follows: Commercial and Industrial: Commercial and industrial loans consist of all commercial and industrial loans as well as agricultural production and other commercial loans. Commercial and industrial loans generally possess a lower inherent risk of loss than real estate portfolio segments as these loans are generally underwritten based on the cash flows of the operating business. Repayment is provided by business cash flows and is influenced by economic trends such as unemployment rates and other key economic factors. Agricultural loans generally possess a lower inherent risk of loss than real estate portfolio segments for the same reasons as commercial and industrial loans. However, they generally possess greater volatility of risk due to commodity pricing, which can lead to cash flow and collateral shortfalls. Real Estate Construction: Real estate construction loans generally possess a higher inherent risk of loss than commercial and retail real estate portfolio segments. Significant inherent risks are project completion, cost overruns, and adherence to construction schedule. Additionally, real estate values could significantly impact the credit quality of these loans. Commercial Real Estate: Commercial real estate loans generally possess a higher inherent risk of loss than other real estate portfolio segments, except real estate construction and agricultural land loans. Adverse economic developments such as high vacancy rates or decreasing real estate values may impact commercial real estate credit quality. Agricultural real estate loans are primarily comprised of loans for the purchase of farmland. Risks associated with farmland include volatility of real estate values driven by commodity prices, among other economic trends. Residential real estate first and junior liens: The degree of risk in residential mortgage lending depends primarily on the loan amount in relation to collateral value, the interest rate, and the borrower’s ability to repay in an orderly fashion. These loans generally possess a lower inherent risk of loss than commercial real estate portfolio segments. Credit quality is impacted by unemployment rates and other key economic indicators. Other Revolving and Installment: The consumer loan portfolio is primarily comprised of homogenous loans. Credit quality is impacted by unemployment rates and other key economic indicators. Although management believes the allowance to be adequate, actual losses may vary from its estimates. On a quarterly basis, management reviews the adequacy of the allowance, including consideration of the relevant risks in the portfolio, current economic conditions, and other factors. If the board of directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. Off‑Balance Sheet Credit Related Financial Instruments In the ordinary course of business, the Company enters into commitments to extend credit, including commitments under credit arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. The Company establishes a reserve for unfunded commitments using historical loss data and utilization assumptions. This reserve is located under accrued expenses and other liabilities on the Consolidated Balance Sheets. Land, Premises and Equipment, Net Land is carried at cost. Other premises and equipment are carried at cost net of accumulated depreciation. Depreciation is computed on a straight‑line method based principally on the estimated useful lives of the assets. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Gains (losses) on dispositions are included in current operations. Bank‑Owned Life Insurance The Company has purchased life insurance policies on certain key executives. Bank‑owned life insurance is recorded at its cash surrender value, or the amount that can be realized, if lower. Goodwill and Other Intangibles, Net Goodwill resulting from acquisitions is not amortized, but is tested for impairment annually. As part of its testing, the Company first assesses the qualitative factors to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If the Company determines the estimated fair value of a reporting unit is less than its carrying amount using these qualitative factors, the Company then compares the estimated fair value of the goodwill with its carrying amount, and then measures impairment loss by comparing the estimated fair value of goodwill with the carrying amount of that goodwill. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, incorporating general economic and market conditions, and selecting an appropriate control premium. At December 31, 2019, the Company believes it does not have any indications of potential impairment based on the estimated fair value of the reporting units. Intangible assets determined to have definite lives are amortized over the remaining useful lives. Intangible and other long‑lived assets are reviewed for impairment whenever events occur or circumstances indicate that the carrying amount may not be recoverable. Servicing Rights Servicing rights are recognized as separate assets when rights are acquired through the sale of loans. Servicing rights are initially recorded at estimated fair value based on assumptions provided by a third‑party valuation service. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as servicing cost per loan, the discount rate, the escrow float rate, an inflation rate, ancillary income, prepayment speeds, and default rates and losses. Loan servicing income is recorded on the accrual basis and includes servicing fees from investors and certain charges collected from borrowers, such as late payment fees, and is net of estimated fair value adjustments to capitalized mortgage servicing rights. Capitalized servicing rights are amortized into noninterest income in proportion to, and over the period of, the estimated future servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon the estimated fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that estimated fair value is less than the capitalized amount for the tranche. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan, and are recorded as income when earned. The amortization of servicing rights is netted against loan servicing fee income. Impairment of Long‑Lived Assets The Company tests long‑lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to the future undiscounted net cash flows expected to be generated by the asset. In the event such an asset is considered impaired, the impairment to be recognized is measured by the amount by which the carrying value of the asset exceeds the estimated fair value of the asset. Assets to be disposed of are reported at the lower of the carrying value of estimated fair value less estimated costs to sell. Foreclosed Assets Assets acquired through loan foreclosure are included in other assets and are initially recorded at estimated fair value less estimated selling costs. The estimated fair value of foreclosed assets is evaluated regularly and any decreases in value along with holding costs, such as taxes, insurance and utilities, are reported in noninterest expense. Transfers of Financial Assets and Participating Interests Transfers of financial assets are accounted for as sales when control over assets has been surrendered or in the case of loan participation, a portion of the asset has been surrendered and meets the definition of a “participating interest.” Control over transferred assets is deemed to be surrendered when 1) the assets have been isolated from the Company, 2) the transferee obtains the rights to pledge or exchange the transferred assets, and 3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Should the transfer not meet these three criteria, the transaction is treated as a secured financing. Loans serviced for others are not included in the accompanying consolidated balance sheets. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and collection and foreclosure processing. Derivatives and Hedging Activities In the ordinary course of business, the Company enters into derivative transactions to manage various risks and to accommodate the business requirements of its clients. Derivative instruments are reported in other assets or other liabilities at estimated fair value. Changes in a derivative’s estimated fair value are recognized currently in earnings unless specific hedge accounting criteria are met. Deposits Held for Sale Deposits held for sale are stated at the lower of cost or fair value on an aggregate basis. Refer to Note 29 (Branch Sale) for additional details on deposits held for sale. Noninterest Income Specific guidelines are established for recognition of certain noninterest income components related to the Company’s consolidated financial statements. In accordance with Topic 606, revenues are recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the Company performs the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five‑step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services that are promised within each contract and identifies those that contain performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The material groups of noninterest income that this methodology is applied to are defined as follows: Retirement and benefit services: Retirement and benefit services income is primarily comprised of fees earned from the administration of retirement plans, record‑keeping, compliance services, payroll processing, health savings accounts, and flexible benefit plans. Fees are earned based on a combination of the market value of assets under administration and transaction based fees for services provided. Fees that are determined based on the market value of the assets under administration are generally billed monthly or quarterly in arrears and recognized monthly as the Company’s performance obligations are met. Other transaction based fees are recognized monthly as the performance obligation is satisfied. Wealth management: Wealth management income is earned from a variety of sources including trust administration and other related fiduciary services, custody, investment management and advisory services, and brokerage. Fees are based on the market value of the assets under management and are generally billed monthly in arrears and recognized monthly as the Company’s performance obligations are met. Commissions on transactions are recognized on a trade‑date basis as the performance obligation is satisfied at the point in time in which the trade is processed. Other related services are based on a fixed fee schedule and the revenue is recognized when the services are rendered, which is when the Company has satisfied its performance obligation. Service charges on deposit accounts: Service charges on deposit accounts primarily consist of account analysis fees, monthly maintenance fees, overdraft fees, and other deposit account related fees. Overdraft fees and certain service charges are fixed and the performance obligation is typically satisfied at the time of the related transaction. The consideration for analysis fees and monthly maintenance fees are variable as the fee can be reduced if the customer meets certain qualifying metrics. The Company’s performance obligations are satisfied at the time of the transaction or over the course of a month. Other noninterest income: Other noninterest income components include debit card interchange fees, bank‑owned life insurance income and miscellaneous transactional fees. Income earned from these revenue streams is generally recognized concurrently with the satisfaction of the performance obligation. Advertising Costs Advertising costs are expensed as incurred. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance would be recognized if it is “more likely than not” that the deferred tax asset would not be realized. These calculations are based on many complex factors including estimates of the timing of reversals of temporary differences, the interpretation of federal and state income tax laws, and a determination of the differences between the tax and the financial reporting basis of assets and liabilities. Actual results could differ significantly from the estimates and interpretations used in determining the current and deferred income tax liabilities. The Company follows standards related to Accounting for Uncertainty in Income Taxes. These rules establish a higher standard for tax benefits to meet before they can be recognized in a Company’s consolidated financial statements. The Company can recognize in financial statements the impact of a tax position taken, or expected to be taken, if it is more likely than not that the position will be sustained on an audit based on the technical merit of the position. See Note 20 (Income Taxes) for additional disclosures. The Company recognizes both interest and penalties as components of other operating expenses. The amount of the uncertain tax position was not determined to be material. It is not expected that the unrecognized tax benefit will be material within the next 12 months. The Company did not recognize any interest or penalties in 2019, 2018, or 2017. The Company files consolidated federal and state income tax returns. The Company is no longer subject to U.S. federal or state tax examinations by tax authorities for years before 2016. Comprehensive Income Recognized revenue, expenses, gains, and losses are included in net income. Certain changes in assets and liabilities, such as unrealized gains (losses) on investment securities available‑for‑sale, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income. Stock Compensation Plans Stock compensation accounting guidance requires that the compensation cost relating to share‑based payment transactions be recognized in financial statements. The cost will be measured based on the grant date estimated fair value of the equity or liability instruments issued. The grant date estimated fair value is determined using the 20 day weighted‑average closing price of the Company’s common stock. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employee’s service period, generally defined as the vesting period. For awards with graded‑vesting, compensation cost is recognized on a straight‑line basis

New Accounting Pronouncements

New Accounting Pronouncements	12 Months Ended
	Dec. 31, 2019
New Accounting Pronouncements
New Accounting Pronouncements	NOTE 2 New Accounting Pronouncements The following Financial Accounting Standards Board, or FASB, Accounting Standards Updates, or ASUs are divided into pronouncements which have been adopted by the Company since January 1, 2019, and those which are not yet effective and have been evaluated or are currently being evaluated by management, as of December 31, 2019. Adopted Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases.” Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases): 1) a lease liability, which is the present value of a lessee’s obligation to make lease payments, and 2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. Leveraged leases have been eliminated, although lessors can continue to account for existing leveraged leases using the current accounting guidance. Other limited changes were made to align lessor accounting with the lessee accounting model and the new revenue recognition standard. All entities will classify leases to determine how to recognize lease-related revenue and expense. Quantitative and qualitative disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The intention is to require enough information to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities. ASU No. 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. All entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. As the Company elected the transition option provided in ASU No. 2018-11, the modified retrospective approach was applied on January 1, 2019. The Company also elected certain relief options offered in ASU 2016-02 including the package of practical expedients, the option not to separate lease and non-lease components and instead to account for them as a single lease component, and the option not to recognize right-of-use assets and lease liabilities that arise from short-term leases (i.e., leases with terms of twelve months or less). The Company did not elect the hindsight practical expedient, which allows entities to use hindsight when determining lease term and impairment of right-of-use assets. The Company has several lease agreements, such as branch locations, which are considered operating leases, and therefore, were not previously recognized on the Company’s consolidated balance sheets. The new guidance requires these lease agreements to be recognized on the consolidated balance sheets as a right-of-use asset and a corresponding lease liability. The new guidance did not have a material impact on the consolidated statements of income or the consolidated statements of cash flows. See Note 9 (Leases) for more information. In March 2017, the FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities. This ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Currently, entities generally amortize the premium as an adjustment of yield over the contractual life of the security. ASU 2017-08 does not change the accounting for purchased callable debt securities held at a discount as the discount will continue to be accreted to maturity. ASU 2017-08 is effective for public business entities for the interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which ASU 2017-08 is adopted. The Company adopted this standard as of January 1, 2019, and has evaluated the provisions of ASU 2017-08 and determined there is no impact on its consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” This ASU’s objectives are to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities; and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. ASU No. 2017-12 is effective for interim and annual reporting periods beginning after December 15, 2018. The Company currently does not designate any derivative financial instruments as formal hedging relationships, and therefore, does not currently utilize hedge accounting. As such, ASU No. 2017-12 did not impact the Company’s consolidated financial statements. In June 2018, the FASB issued ASU No. 2018‑07, Compensation (Topic 718): Improvements to Nonemployee Share‑Based Payment Accounting. This ASU has been issued as part of a simplification initiative which will expand the scope of Topic 718 to include share‑based payment transactions for the acquiring of goods and services from non‑employees and expands the scope through the amendments to address and improve aspects of the accounting for non‑employee share‑based payment transactions. The amendments will be effective for public business entities for interim and annual reporting periods beginning after December 15, 2018. The Company adopted ASU 2018‑07 effective January 1, 2019, and has evaluated the provisions of ASU 2018‑07 and determined there was no significant impact on its consolidated financial statements. Pronouncements Not Yet Effective In June 2016, the FASB issued ASU No. 2016‑13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU requires a new impairment model known as the current expected credit loss, or CECL which significantly changes the way impairment of financial instruments is recognized by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of financial instruments. The main provisions of ASU 2016‑13 include (1) replacing the “incurred cost” approach under GAAP with an “expected loss” model for instruments measured at amortized cost, (2) requiring entities to record an allowance for credit losses related to available‑for‑sale debt securities rather than a direct write‑down of the carrying amount of the investments, as is required by the other‑than‑temporary impairment model under current GAAP, and (3) a simplified accounting model for purchase credit‑impaired debt securities and loans. On July 17, 2019, the FASB voted to issue a proposal for public comment that would potentially result in the postponement of the required implementation date for ASU 2016-13, and on October 16, 2019, the FASB approved delaying the implementation of this ASU for private companies and smaller reporting companies until 2023. As an emerging growth company, the Company can take advantage of this delay. Management will continue to monitor any new developments regarding this possible delay. The Company is currently evaluating the potential impact of ASU 2016‑13 on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017‑04, Simplifying the Test for Goodwill Impairment. This ASU removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the amended guidance, a goodwill impairment charge will now be recognized for the amount by which the carrying value of a reporting unit exceeds its estimated fair value, not to exceed the carrying amount of goodwill. For public business entities that are US Securities and Exchange Commission filers, ASU 2017‑04 is effective for interim and annual reporting periods beginning after December 15, 2019. For all other public business entities ASU 2017‑04 is effective for interim and annual reporting periods beginning after December 15, 2020. As an emerging growth company, ASU 2017‑04 is effective for interim and annual reporting periods beginning after December 15, 2021, although early adoption is permitted. The Company has evaluated impact of this new guidance and determined that it will not have a significant impact of the consolidated financial statements. In August 2018, the FASB issued ASU No. 2018‑13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. This ASU eliminates, adds, and modifies certain disclosure requirements for estimated fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfer between Level 1 and Level 2 of the estimated fair value hierarchy, but will be required to disclose the range and weighted-average used to develop significant unobservable inputs for Level 3 estimated fair value measurements. ASU 2018‑13 is effective for all entities for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. Entities are also allowed to elect for early adoption of the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. The revised disclosure requirements will not have a material impact on the Company’s consolidated financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which affects a variety of topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. This update is not expected to have a significant impact on the Company’s consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, Targeted Transition Relief to provide entities with an option to irrevocably elect the fair value option applied on an instrument-by-instrument basis for eligible instruments. As an emerging growth company, these ASUs are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. This update is not expected to have a significant impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for the areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2020. Early adoption of the amendments is permitted, including adoption in any interim period for which financial statements have not yet been issued. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective, or prospective basis. The Company is currently reviewing the provisions of this new pronouncement, but does not expect adoption of this guidance to have a material impact on the Company’s consolidated financial statements.

Restrictions on Cash and Due fr

Restrictions on Cash and Due from Banks	12 Months Ended
	Dec. 31, 2019
Restrictions on Cash and Due from Banks
Restrictions on Cash and Due from Banks	NOTE 3 Restrictions on Cash and Due from Banks Banking regulators require bank subsidiaries to maintain minimum average reserve balances, either in the form of vault cash or reserve balances held with central banks or other financial institutions. The amount of required reserve balances were approximately $13.8 million and $9.1 million at December 31, 2019 and 2018, respectively, and represent those required to be held at the Federal Reserve Bank. In addition to vault cash, the Company held balances at the Federal Reserve Bank and other financial institutions of $109.4 million and $7.2 million at December 31, 2019 and 2018, respectively, to meet these requirements. The balances are included in cash and cash equivalents on the Consolidated Balance Sheets.

Investment Securities

Investment Securities	12 Months Ended
	Dec. 31, 2019
Investment Securities
Investment Securities	NOTE 4 Investment Securities The amortized cost of investment securities and their estimated fair values, with gross unrealized gains (losses) at December 31, 2019 and 2018 are as follows: December 31, 2019 Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value U.S. Treasury and agencies $ 21,246 $ 9 $ (15) $ 21,240 Obligations of state and political agencies 68,162 647 (161) 68,648 Mortgage backed securities Residential agency 180,411 2,258 (131) 182,538 Commercial 30,752 101 (168) 30,685 Asset backed securities 139 5 — 144 Corporate bonds 7,054 41 — 7,095 Total available-for-sale investment securities $ 307,764 $ 3,061 $ (475) $ 310,350 December 31, 2018 Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value U.S. Treasury and agencies $ 19,364 $ — $ (222) $ 19,142 Obligations of state and political agencies 67,662 171 (1,446) 66,387 Mortgage backed securities Residential agency 129,906 210 (3,118) 126,998 Commercial 29,050 20 (303) 28,767 Asset backed securities 398 5 (4) 399 Corporate bonds 8,602 — (121) 8,481 Total available-for-sale investment securities $ 254,982 $ 406 $ (5,214) $ 250,174 The amortized cost and estimated fair value of investment securities at December 31, 2019, by contractual maturity are as follows: Amortized Fair (dollars in thousands) Cost Value Due within one year or less $ 14,799 $ 14,807 Due after one year through five years 25,193 25,315 Due after five years through ten years 83,987 84,965 Due after 10 years 183,785 185,263 Total available-for-sale investment securities $ 307,764 $ 310,350 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. Investment securities with carrying value of $136.2 million and $149.0 million, were pledged at December 31, 2019 and 2018, respectively, to secure public deposits and for other purposes required or permitted by law. Proceeds from the sale of available‑for‑sale securities for the years ended December 31, 2019, 2018, and 2017 are displayed in the table below: Year ended December 31, (dollars in thousands) 2019 2018 2017 Proceeds $ 32,565 $ 6,488 $ — Realized gains 357 144 — Realized losses (22) (15) — Information pertaining to investment securities with gross unrealized losses that are not deemed to be other‑than‑temporarily impaired at December 31, 2019 and 2018 aggregated by investment category and length of time that individual investment securities have been in a continuous loss position, follows: December 31, 2019 Less than 12 Months Over 12 Months Total Unrealized Fair Unrealized Fair Unrealized Fair (dollars in thousands) Losses Value Losses Value Losses Value U.S. Treasury and agencies $ (5) $ 1,740 $ (10) $ 9,990 $ (15) $ 11,730 Obligations of state and political agencies (140) 11,959 (21) 5,798 (161) 17,757 Mortgage backed securities Residential agency (52) 17,131 (79) 14,036 (131) 31,167 Commercial (116) 15,235 (52) 6,195 (168) 21,430 Asset backed securities — 2 — — — 2 Corporate bonds — — — — — — Total available-for-sale investment securities $ (313) $ 46,067 $ (162) $ 36,019 $ (475) $ 82,086 December 31, 2018 Less than 12 Months Over 12 Months Total Unrealized Fair Unrealized Fair Unrealized Fair (dollars in thousands) Losses Value Losses Value Losses Value U.S. Treasury and agencies $ (8) $ 5,288 $ (214) $ 11,598 $ (222) $ 16,886 Obligations of state and political agencies — 389 (1,446) 55,770 (1,446) 56,159 Mortgage backed securities Residential agency (44) 7,352 (3,074) 112,293 (3,118) 119,645 Commercial (39) 7,844 (264) 9,741 (303) 17,585 Asset backed securities — 2 (4) 155 (4) 157 Corporate bonds — — (121) 8,481 (121) 8,481 Total available-for-sale investment securities $ (91) $ 20,875 $ (5,123) $ 198,038 $ (5,214) $ 218,913 For all of the above investment securities, the unrealized losses are generally due to changes in interest rates and unrealized losses are considered to be temporary as the fair value is expected to recover as the securities approach maturity. The Company evaluates securities for other-than-temporary impairment, or OTTI on a quarterly basis, at a minimum, and more frequently when economic or market concerns warrant such evaluation. In estimating OTTI losses, consideration is given to the severity and duration of the impairment; the financial condition and near-term prospects of the issuer, which for debt securities, considers external credit ratings and recent downgrades; and the intent and ability of the Company to hold the security for a period of time sufficient for a recovery in value. For the year ended December 31, 2019 and 2018, the Company did not believe any OTTI existed and therefore did not recognize any OTTI losses on its investment securities. As of December 31, 2019 and 2018, the carrying value of the Company’s Federal Reserve Bank stock and FHLB stock was as follows: December 31, December 31, (dollars in thousands) 2019 2018 Federal Reserve $ 2,675 $ 2,675 FHLB 3,080 6,875 These securities can only be redeemed or sold at their par value and only to the respective issuing institution or to another member institution. Management considers these non-marketable equity securities to be long-term investments. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. Visa Class B Restricted Shares In 2008, the Company received Visa Class B restricted shares as part of Visa’s initial public offering. These shares are transferable only under limited circumstances until they can be converted into the publicly traded Class A common shares. This conversion will not occur until the settlement of certain litigation which will be indemnified by Visa members, including the Company. Visa funded an escrow account from its initial public offering to settle these litigation claims. Should this escrow account be insufficient to cover these litigation claims, Visa is entitled to fund additional amounts to the escrow account by reducing each member bank’s Class B conversion ratio to unrestricted Class A shares. As of December 31, 2019, the conversion ratio was 1.6228. Based on the existing transfer restriction and the uncertainty of the outcome of the Visa litigation mentioned above, the 6,924 Class B shares (11,236 Class A equivalents) that the Company owned as of December 31, 2019 and 2018, are carried at a zero cost basis.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	12 Months Ended
	Dec. 31, 2019
Loans and Allowance for Loan Losses
Loans and Allowance for Loan Losses	NOTE 5 Loans and Allowance for Loan Losses The following table presents total loans outstanding, by portfolio segment, as of December 31, 2019 and 2018: December 31, December 31, (dollars in thousands) 2019 2018 Commercial Commercial and industrial $ 479,144 $ 510,706 Real estate construction 26,378 18,965 Commercial real estate 494,703 439,963 Total commercial 1,000,225 969,634 Consumer Residential real estate first mortgage 457,155 448,143 Residential real estate junior lien 177,373 188,855 Other revolving and installment 86,526 95,218 Total consumer 721,054 732,216 Total loans $ 1,721,279 $ 1,701,850 Total loans include net deferred loan fees and costs of $1.0 million and $1.7 million at December 31, 2019 and 2018, respectively Management monitors the credit quality of its loan portfolio on an ongoing basis. Measurement of delinquency and past due status are based on the contractual terms of each loan. Past due loans are reviewed regularly to identify loans for nonaccrual status. The following tables present past due aging analysis of total loans outstanding, by portfolio segment, as of December 31, 2019 and 2018, respectively: December 31, 2019 90 Days Accruing 30 - 89 Days or More Total (dollars in thousands) Current Past Due Past Due Nonaccrual Loans Commercial Commercial and industrial $ 473,900 $ 382 $ — $ 4,862 $ 479,144 Real estate construction 26,251 127 — — 26,378 Commercial real estate 492,707 556 — 1,440 494,703 Total commercial 992,858 1,065 — 6,302 1,000,225 Consumer Residential real estate first mortgage 455,244 666 448 797 457,155 Residential real estate junior lien 176,915 184 — 274 177,373 Other revolving and installment 86,172 348 — 6 86,526 Total consumer 718,331 1,198 448 1,077 721,054 Total loans $ 1,711,189 $ 2,263 $ 448 $ 7,379 $ 1,721,279 December 31, 2018 90 Days Accruing 30 - 89 Days or More Total (dollars in thousands) Current Past Due Past Due Nonaccrual Loans Commercial Commercial and industrial $ 504,313 $ 2,815 $ — $ 3,578 $ 510,706 Real estate construction 18,965 — — — 18,965 Commercial real estate 438,446 — — 1,517 439,963 Total commercial 961,724 2,815 — 5,095 969,634 Consumer Residential real estate first mortgage 444,470 2,411 — 1,262 448,143 Residential real estate junior lien 187,502 769 — 584 188,855 Other revolving and installment 94,615 581 — 22 95,218 Total consumer 726,587 3,761 — 1,868 732,216 Total loans $ 1,688,311 $ 6,576 $ — $ 6,963 $ 1,701,850 Interest income foregone on nonaccrual loans approximated $ 0.4 million, $0. 3 million, and $0. 2 million for the years ended December 31, 2019, 2018, and 2017, respectively. The Company’s consumer loan portfolio is primarily comprised of both secured and unsecured loans that are relatively small and are evaluated at origination on a centralized basis against standardized underwriting criteria. The Company generally does not risk rate consumer loans unless a default event such as bankruptcy or extended nonperformance takes place. Credit quality for the consumer loan portfolio is measured by delinquency rates, nonaccrual amounts, and actual losses incurred. The Company assigns a risk rating to all commercial loans, except pools of homogeneous loans, and periodically performs detailed internal and external reviews of risk rated loans over a certain threshold to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to examination by the Company’s regulators. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate, and the estimated fair values of collateral securing the loans. These credit quality indicators are used to assign a risk rating to each individual loan. The Company’s ratings are aligned to pass and criticized categories. The criticized category includes special mention, substandard, and doubtful risk ratings. The risk ratings are defined as follows: Pass: A pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention. Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, this potential weakness may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Substandard: Loans classified as substandard are not adequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans classified as substandard have a well‑defined weakness or weaknesses that jeopardize the repayment of the debt. Well‑defined weaknesses include a borrower’s lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time, or the failure to fulfill economic expectations. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss: Loans classified as loss are considered uncollectible and charged off immediately. The tables below present total loans outstanding, by portfolio segment and risk category, as of December 31, 2019 and 2018: December 31, 2019 Criticized Special (dollars in thousands) Pass Mention Substandard Doubtful Total Commercial Commercial and industrial $ 448,306 $ 9,585 $ 21,253 $ — $ 479,144 Real estate construction 25,119 282 977 — 26,378 Commercial real estate 462,294 2,359 30,050 — 494,703 Total commercial $ 935,719 $ 12,226 $ 52,280 $ — $ 1,000,225 Consumer Residential real estate first mortgage 456,358 — 797 — 457,155 Residential real estate junior lien 176,122 — 1,251 — 177,373 Other revolving and installment 86,520 — 6 — 86,526 Total consumer 719,000 — 2,054 — 721,054 Total loans $ 1,654,719 $ 12,226 $ 54,334 $ — $ 1,721,279 December 31, 2018 Criticized Special (dollars in thousands) Pass Mention Substandard Doubtful Total Commercial Commercial and industrial $ 459,565 $ 12,055 $ 37,523 $ 1,563 $ 510,706 Real estate construction 17,910 — 1,055 — 18,965 Commercial real estate 407,178 6,304 26,481 — 439,963 Total commercial $ 884,653 $ 18,359 $ 65,059 $ 1,563 $ 969,634 Consumer Residential real estate first mortgage 448,124 — 19 — 448,143 Residential real estate junior lien 186,370 — 2,485 — 188,855 Other revolving and installment 95,218 — — — 95,218 Total consumer 729,712 — 2,504 — 732,216 Total loans $ 1,614,365 $ 18,359 $ 67,563 $ 1,563 $ 1,701,850 The adequacy of the allowance for loan losses is assessed at the end of each quarter. The allowance for loan losses includes a specific component related to loans that are individually evaluated for impairment and a general component related to loans that are segregated into homogeneous pool and collectively evaluated for impairment. The factors applied to these pools are an estimate of probable incurred losses based on management’s evaluation of historical net losses from loans with similar characteristics, which are adjusted by management to reflect current events, trends, and conditions. The adjustments include consideration of the following: changes in lending policies and procedures, economic conditions, nature and volume of the portfolio, experience of lending management, volume and severity of past due loans, quality of the loan review system, value of underlying collateral for collateral dependent loans, concentrations, and other external factors. The following tables present, by loan portfolio segment, a summary of the changes in the allowance for loan losses for the three years ending December 31, 2019, 2018, and 2017: Year ended December 31, 2019 Beginning Provision for Loan Loan Ending (dollars in thousands) Balance Loan Losses Charge-offs Recoveries Balance Commercial Commercial and industrial $ 12,127 $ 5,213 $ (6,540) $ 1,470 $ 12,270 Real estate construction 250 51 (1) 3 303 Commercial real estate 6,279 (1,467) — 150 4,962 Total commercial 18,656 3,797 (6,541) 1,623 17,535 Consumer Residential real estate first mortgage 1,156 292 — — 1,448 Residential real estate junior lien 805 1,825 (465) 232 2,397 Other revolving and installment 380 383 (572) 161 352 Total consumer 2,341 2,500 (1,037) 393 4,197 Unallocated 1,177 1,015 — — 2,192 Total $ 22,174 $ 7,312 $ (7,578) $ 2,016 $ 23,924 Year ended December 31, 2018 Beginning Provision for Loan Loan Ending (dollars in thousands) Balance Loan Losses Charge-offs Recoveries Balance Commercial Commercial and industrial $ 7,589 $ 6,911 $ (3,123) $ 750 $ 12,127 Real estate construction 343 (35) (60) 2 250 Commercial real estate 4,909 1,889 (600) 81 6,279 Total commercial 12,841 8,765 (3,783) 833 18,656 Consumer Residential real estate first mortgage 1,411 (226) (29) — 1,156 Residential real estate junior lien 902 (171) (133) 207 805 Other revolving and installment 499 (24) (308) 213 380 Total consumer 2,812 (421) (470) 420 2,341 Unallocated 911 266 — — 1,177 Total $ 16,564 $ 8,610 $ (4,253) $ 1,253 $ 22,174 Year ended December 31, 2017 Beginning Provision for Loan Loan Ending (dollars in thousands) Balance Loan Losses Charge-offs Recoveries Balance Commercial Commercial and industrial $ 6,702 $ 3,244 $ (3,287) $ 930 $ 7,589 Real estate construction 480 (416) — 279 343 Commercial real estate 4,484 352 — 73 4,909 Total commercial 11,666 3,180 (3,287) 1,282 12,841 Consumer Residential real estate first mortgage 1,126 182 — 103 1,411 Residential real estate junior lien 907 247 (1,124) 872 902 Other revolving and installment 400 276 (429) 252 499 Total consumer 2,433 705 (1,553) 1,227 2,812 Unallocated 1,516 (605) — — 911 Total $ 15,615 $ 3,280 $ (4,840) $ 2,509 $ 16,564 The following tables present the recorded investment in loans and related allowance for the loan losses, by portfolio segment, disaggregated on the basis of the Company’s impairment methodology, as of December 31, 2019 and 2018: December 31, 2019 Recorded Investment Allowance for Loan Losses Individually Collectively Individually Collectively (dollars in thousands) Evaluated Evaluated Total Evaluated Evaluated Unallocated Total Commercial Commercial and industrial $ 976 $ 478,168 $ 479,144 $ 189 $ 12,081 $ — $ 12,270 Real estate construction — 26,378 26,378 — 303 — 303 Commercial real estate 5,925 488,778 494,703 2,946 2,016 — 4,962 Total commercial 6,901 993,324 1,000,225 3,135 14,400 — 17,535 Consumer Residential real estate first mortgage 782 456,373 457,155 — 1,448 — 1,448 Residential real estate junior lien 266 177,107 177,373 — 2,397 — 2,397 Other revolving and installment 5 86,521 86,526 3 349 — 352 Total consumer 1,053 720,001 721,054 3 4,194 — 4,197 Total loans $ 7,954 $ 1,713,325 $ 1,721,279 $ 3,138 $ 18,594 $ 2,192 $ 23,924 December 31, 2018 Recorded Investment Allowance for Loan Losses Individually Collectively Individually Collectively (dollars in thousands) Evaluated Evaluated Total Evaluated Evaluated Unallocated Total Commercial Commercial and industrial $ 3,945 $ 506,761 $ 510,706 $ 2,059 $ 10,068 $ — $ 12,127 Real estate construction — 18,965 18,965 — 250 — 250 Commercial real estate 1,684 438,279 439,963 455 5,824 — 6,279 Total commercial 5,629 964,005 969,634 2,514 16,142 — 18,656 Consumer Residential real estate first mortgage 352 447,791 448,143 — 1,156 — 1,156 Residential real estate junior lien 559 188,296 188,855 4 801 — 805 Other revolving and installment 20 95,198 95,218 20 360 — 380 Total consumer 931 731,285 732,216 24 2,317 — 2,341 Total loans $ 6,560 $ 1,695,290 $ 1,701,850 $ 2,538 $ 18,459 $ 1,177 $ 22,174 The tables below summarize key information on impaired loans. These impaired loans may have estimated losses which are included in the allowance for loan losses. December 31, 2019 December 31, 2018 Recorded Unpaid Related Recorded Unpaid Related (dollars in thousands) Investment Principal Allowance Investment Principal Allowance Impaired loans with a valuation allowance Commercial and industrial $ 639 $ 727 $ 189 $ 2,660 $ 2,752 $ 2,059 Commercial real estate 5,718 5,823 2,946 1,499 1,517 455 Residential real estate first mortgage — — — — — — Residential real estate junior lien — — — 4 4 4 Other revolving and installment 5 6 3 19 20 20 Total impaired loans with a valuation allowance 6,362 6,556 3,138 4,182 4,293 2,538 Impaired loans without a valuation allowance Commercial and industrial 337 1,110 — 1,285 1,422 — Commercial real estate 207 236 — 185 218 — Residential real estate first mortgage 782 797 — 352 504 — Residential real estate junior lien 266 372 — 555 697 — Other revolving and installment — — — 1 2 — Total impaired loans without a valuation allowance 1,592 2,515 — 2,378 2,843 — Total impaired loans Commercial and industrial 976 1,837 189 3,945 4,174 2,059 Commercial real estate 5,925 6,059 2,946 1,684 1,735 455 Residential real estate first mortgage 782 797 — 352 504 — Residential real estate junior lien 266 372 — 559 701 4 Other revolving and installment 5 6 3 20 22 20 Total impaired loans $ 7,954 $ 9,071 $ 3,138 $ 6,560 $ 7,136 $ 2,538 The table below presents the average recorded investment in impaired loans and interest income for the three years ending December 31, 2019, 2018, and 2017: Year Ended December 31, 2019 2018 2017 Average Average Average Recorded Interest Recorded Interest Recorded Interest (dollars in thousands) Investment Income Investment Income Investment Income Impaired loans with a valuation allowance Commercial and industrial $ 839 $ 16 $ 3,163 $ — $ 2,605 $ 148 Real estate construction — — — — — — Commercial real estate 5,891 — 1,558 — 234 9 Residential real estate first mortgage — — — — — — Residential real estate junior lien — — 4 — 317 18 Other revolving and installment 20 — 28 — 79 6 Total impaired loans with a valuation allowance 6,750 16 4,753 — 3,235 181 Impaired loans without a valuation allowance Commercial and industrial 2,434 30 1,595 35 1,676 89 Real estate construction — — — — 65 3 Commercial real estate 212 8 223 9 — — Residential real estate first mortgage 230 — 533 — 620 37 Residential real estate junior lien 338 4 718 6 1,963 123 Other revolving and installment 3 — 3 — 10 — Total impaired loans without a valuation allowance 3,217 42 3,072 50 4,334 252 Total impaired loans Commercial and industrial 3,273 46 4,758 35 4,281 237 Real estate construction 65 3 Commercial real estate 6,103 8 1,781 9 234 9 Residential real estate first mortgage 230 — 533 — 620 37 Residential real estate junior lien 338 4 722 6 2,280 141 Other revolving and installment 23 — 31 — 89 6 Total impaired loans $ 9,967 $ 58 $ 7,825 $ 50 $ 7,569 $ 433 Loans with a carrying value of $1.2 billion and $1.1 billion were pledged at December 31, 2019 and 2018, respectively, to secure FHLB borrowings, public deposits, and for other purposes required or permitted by law. Under certain circumstances, the Company will provide borrowers relief through loan restructurings. A restructuring of debt constitutes a troubled debt restructuring, or TDR if the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. TDR concessions can include reduction of interest rates, extension of maturity dates, forgiveness of principal or interest due, or acceptance of other assets in full or partial satisfaction of the debt. During the first quarter of 2019, there was one loan modified as a troubled debt restructuring as a result of extending the amortization period. As of December 31, 2019, the carrying value of the restructured loan was $ 0.2 million. The loan is currently performing according to the modified terms and there was a $24 thousand specific reserve for the loan losses allocated to the loan modified as a troubled debt restructuring. During the first quarter of 2018, there was one loan modified as a troubled debt restructuring as a result of adjusting the interest rate below current market levels. The balance at the time of restructuring was $1.0 million. As of December 31, 2018 the carrying value of the restructured loan was $0.2 million. In December 2019, this loan was charged off. The Company does not have material commitments to lend additional funds to borrowers with loans whose terms have been modified in troubled debt restructurings or whose loans are on nonaccrual.

Land, Premises and Equipment, N

Land, Premises and Equipment, Net	12 Months Ended
	Dec. 31, 2019
Land, Premises and Equipment, Net
Land, Premises and Equipment, Net	NOTE 6 Land, Premises and Equipment, Net Components of land, premises and equipment at December 31, 2019 and 2018 are as follows: December 31, December 31, (dollars in thousands) 2019 2018 Land $ 4,542 $ 4,663 Buildings and improvements 25,078 25,902 Finance lease 2,657 2,657 Furniture, fixtures, and equipment 31,859 29,767 64,136 62,989 Less accumulated depreciation (43,507) (41,246) Total $ 20,629 $ 21,743 Depreciation expense for years ended December 31, 2019, 2018, and 2017 amounted to $3.6 million, $3. 2 million, and $3.2 million, respectively.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	12 Months Ended
	Dec. 31, 2019
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	NOTE 7 Goodwill and Other Intangible Assets As of December 31, 2019 and 2018, goodwill totaled $27.3 million. The following table summarizes the carrying amounts of goodwill, by segment, as of December 31, 2019 and 2018: December 31, December 31, (dollars in thousands) 2019 2018 Banking $ 20,131 $ 20,131 Retirement and benefit services 7,198 7,198 Total goodwill $ 27,329 $ 27,329 The gross carrying amount and accumulated amortization for each type of identifiable intangible asset are as follows: December 31, 2019 December 31, 2018 (dollars in thousands) Gross Accumulated Total Gross Accumulated Total Identifiable customer intangibles $ 31,857 $ (14,287) $ 17,570 $ 55,744 $ (34,972) $ 20,772 Core deposit intangible assets 4,993 (4,172) 821 7,216 (5,515) 1,701 Total intangible assets $ 36,850 $ (18,459) $ 18,391 $ 62,960 $ (40,487) $ 22,473 At December 31, 2019, intangible assets and accumulated amortization were reduced by $26.1 million for asset retirements related to fully amortized intangibles. Aggregate amortization expense for the years ended December 31, 2019, 2018, and 2017 was $4.1 million, $4.6 million, and $5.6 million, respectively. Estimated aggregate amortization expense for future years is as follows: (dollars in thousands) Amount 2020 $ 3,961 2021 3,266 2022 3,202 2023 3,202 2024 2,949 Thereafter 1,811 Total $ 18,391

Loan Servicing

Loan Servicing	12 Months Ended
	Dec. 31, 2019
Loan Servicing
Loan Servicing	NOTE 8 Loan Servicing Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of loans serviced for others totaled $541.9 million and $591.6 million at December 31, 2019 and 2018, respectively. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and collection and foreclosure processing. Loan servicing income is recorded on an accrual basis and includes servicing fees from investors and certain charges collected from borrowers, such as late payment fees, and is net of fair value adjustments to capitalized mortgage servicing rights. The following table summarizes the Company’s activity related to servicing rights for the years ended December 31, 2019, 2018, and 2017: Year ended December 31, (dollars in thousands) 2019 2018 2017 Balance, beginning of period $ 4,623 $ 4,686 $ 4,777 Additions 342 534 745 Amortization (987) (669) (822) (Impairment)/Recovery (133) 72 (14) Balance, end of period $ 3,845 $ 4,623 $ 4,686 The amount of loan servicing obligations included in other liabilities was $0 and $92 thousand as of December 31, 2019 and 2018, respectively. The following is a summary of key data and assumptions used in the valuation of servicing rights as of December 31, 2019 and 2018. Increases or decreases in any one of these assumptions would result in lower or higher fair value measurements. December 31, December 31, (dollars in thousands) 2019 2018 Fair value of servicing rights $ 3,845 $ 4,623 Weighted-average remaining term, years 20.1 20.8 Prepayment speeds 11.8 % 7.8 % Discount rate 9.4 % 10.5 %

Leases

Leases	12 Months Ended
	Dec. 31, 2019
Leases
Leases	NOTE 9 Leases Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches, and office equipment rentals with terms extending through 2027. Portions of certain properties are subleased for terms extending through 2023. Substantially all of the Company’s leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated financial statements. With the adoption of Topic 842, operating lease agreements are required to be recognized on the consolidated financial statements as a right-of-use, or ROU asset and a corresponding lease liability. The Company has one existing finance lease (previously referred to as a capital lease) for a portion of the Company’s headquarters building with a lease term through 2022. As this lease was previously required to be recorded on the Company’s consolidated financial statements, Topic 842 did not materially impact the accounting for this lease. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated financial statements. The following table presents the classification of the Company’s ROU assets and lease liabilities on the consolidated financial statements. December 31, (dollars in thousands) 2019 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Operating lease right-of-use assets $ 8,343 Finance lease right-of-use assets Land, premises and equipment, net 318 Total lease right-of-use assets $ 8,661 Lease Liabilities Operating lease liabilities Operating lease liabilities $ 8,864 Finance lease liabilities Long-term debt 640 Total lease liabilities $ 9,504 The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rates used to calculate the present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 require the use of the rate implicit in the lease whenever the rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. For the Company’s only finance lease, the Company utilized its incremental borrowing rate at lease inception. December 31, 2019 Weighted-average remaining lease term, years Operating leases 6.2 Finance leases 2.8 Weighted-average discount rate Operating leases 3.1 % Finance leases 7.8 % As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance utilities. Variable lease cost also includes payments for usage or maintenance of those capitalized equipment operating leases. The following table presents lease costs and other lease information for the year ending December 31, 2019: Year ended (dollars in thousands) December 31, 2019 Lease costs Operating lease cost $ 2,378 Variable lease cost 819 Short-term lease cost 535 Finance lease cost Interest on lease liabilities 58 Amortization of right-of-use assets 116 Sublease income (270) Net lease cost $ 3,636 Other information Cash paid for amounts included in the measurement of lease liabilities operating cash flows from operating leases 2,376 Right-of-use assets obtained in exchange for new operating lease liabilities — Right-of-use assets obtained in exchange for new finance lease liabilities — Future minimum payments for finance and operating leases with initial or remaining terms of one year or more as of December 31, 2019 are as follows: December 31, 2019 Finance Operating (dollars in thousands) Leases Leases 2020 $ 251 $ 2,197 2021 251 1,560 2022 209 1,563 2023 — 1,488 2024 — 898 Thereafter — 2,272 Total future minimum lease payments $ 711 $ 9,978 Amounts representing interest (71) (1,114) Total operating lease liabilities $ 640 $ 8,864

Other Assets

Other Assets	12 Months Ended
	Dec. 31, 2019
Other Assets
Other Assets	NOTE 10 Other Assets Other assets on the balance sheet consist of the following balances at December 31, 2019 and 2018: December 31, December 31, (dollars in thousands) 2019 2018 Federal Reserve Bank stock $ 2,675 $ 2,675 Foreclosed assets 8 204 Prepaid expenses 5,214 5,163 Investments in partnerships 14 75 Trust fees accrued/receivable 12,852 11,724 Income tax refund receivable 374 2,379 Federal Home Loan Bank stock 3,080 6,875 Other assets 5,751 3,592 Total $ 29,968 $ 32,687

Deposits

Deposits	12 Months Ended
	Dec. 31, 2019
Deposits.
Deposits	NOTE 11 Deposits The components of deposits in the consolidated balance sheets at December 31, 2019 and 2018 were as follows: December 31, December 31, (dollars in thousands) 2019 2018 Noninterest-bearing $ 577,704 $ 550,640 Interest-bearing Interest-bearing demand 458,689 401,078 Savings accounts 55,777 53,971 Money market savings 683,064 598,820 Time deposits 196,082 170,587 Total interest-bearing 1,393,612 1,224,456 Total deposits $ 1,971,316 $ 1,775,096 The aggregate amount of deposit overdrafts included as loans were $315 thousand and $77 thousand at December 31, 2019 and 2018, respectively. Certificates of deposit in excess of $250,000 totaled $42.2 million and $27.5 million at December 31, 2019 and 2018, respectively. At December 31, 2019, the scheduled maturities of certificates of deposit are as follows: (dollars in thousands) Amount 2020 $ 158,834 2021 17,504 2022 5,770 2023 4,669 2024 2,551 Thereafter 6,754 Total $ 196,082

Short-Term Borrowings

Short-Term Borrowings	12 Months Ended
	Dec. 31, 2019
Short-Term Borrowings
Short-Term Borrowings	NOTE 12 Short‑Term Borrowings Short‑term borrowings at December 31, 2019, 2018, and 2017 consisted of the following: Year ended December 31, (dollars in thousands) 2019 2018 2017 Securities sold under agreements to repurchase Balance as of end of period $ — $ — $ — Average daily balance — — 28 Maximum month-end balance — — — Weighted-average rate During period — % — % 0.54 % End of period — % — % — % Fed funds purchased Balance as of end of period $ — $ 93,460 $ — Average daily balance 61,709 86,768 33,348 Maximum month-end balance 139,605 112,260 131,260 Weighted-average rate During period 2.54 % 2.18 % 1.33 % End of period — % 2.63 % — % FHLB Short-term advances Balance as of end of period $ — $ — $ 30,000 Average daily balance 9,712 82 39,069 Maximum month-end balance 135,000 — 120,000 Weighted-average rate During period 2.44 % 1.42 % 1.28 % End of period — % — % 1.42 % The Company had outstanding credit capacity with FHLB of $552.2 million and $424.1 million at December 31, 2019 and 2018 respectively, secured by pledged loans and investment securities. The Company also had $87.0 million of unsecured federal funds agreements with correspondent banks with no outstanding balance at December 31, 2019 and 2018. In 2019, the Company established a $15.0 million unsecured line of credit with Bank of North Dakota.

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2019
Long-Term Debt.
Long-Term Debt	NOTE 13 Long‑Term Debt Long‑term debt at December 31, 2019 and 2018 consisted of the following: December 31, 2019 Period End Face Carrying Interest Maturity (dollars in thousands) Value Value Interest Rate Rate Date Call Date Subordinated notes payable $ 50,000 $ 49,625 Fixed 5.75 % 12/30/2025 12/30/2020 Junior subordinated debenture (Trust I) 4,124 3,402 Three-month LIBOR + 3.10% 5.05 % 6/26/2033 6/26/2008 Junior subordinated debenture (Trust II) 6,186 5,102 Three-month LIBOR + 1.80% 3.69 % 9/15/2036 9/15/2011 Finance lease liability 2,700 640 Fixed 7.81 % 10/31/2022 N/A Total long-term debt $ 63,010 $ 58,769 December 31, 2018 Period End Face Carrying Interest Maturity (dollars in thousands) Value Value Interest Rate Rate Date Call Date Subordinated notes payable $ 50,000 $ 49,562 Fixed 5.75 % 12/30/2025 12/30/2020 Junior subordinated debenture (Trust I) 4,124 3,357 Three-month LIBOR + 3.10% 5.92 % 6/26/2033 6/26/2008 Junior subordinated debenture (Trust II) 6,186 5,035 Three-month LIBOR + 1.80% 4.59 % 9/15/2036 9/15/2011 Obligations under capital lease 2,700 870 Fixed 7.81 % 10/31/2022 N/A Total long-term debt $ 63,010 $ 58,824

True-Up Liability

True-Up Liability	12 Months Ended
	Dec. 31, 2019
True-Up Liability
True-Up Liability	NOTE 14 True‑Up Liability In connection with the Prosperan Bank acquisition in 2009, the Bank agreed to pay the Federal Deposit Insurance Corporation, or FDIC, should the estimated losses on the acquired loan portfolios as well as servicing fees earned on the acquired loan portfolios not meet thresholds as stated in the loss sharing agreements, or the true‑up liability. This contingent consideration was classified as a liability within other liabilities on the Consolidated Balance Sheet and was re‑measured at each reporting date until the contingency was resolved. At December 31, 2017, the value of the true‑up liability was $3.2 million. Changes in the value of the liability were reported in other noninterest expense. On October 24, 2018, the Company entered into a termination agreement with the FDIC that terminated both the Single Family Shared‑Loss Agreement as well as the Commercial and Other Assets Shared‑Loss Agreement. The Company agreed to pay the FDIC $3.0 million. All rights and obligations of the parties under these loss share agreements, including the claw‑back provisions, terminated effective October 24, 2018. As a result, all recoveries, gains, charge‑offs, losses and expenses related to assets previously covered under loss share agreements are recognized entirely by the Company from the date of termination.

Financial Instruments with Off-

Financial Instruments with Off-Balance Sheet Risk	12 Months Ended
	Dec. 31, 2019
Financial Instruments with Off-Balance Sheet Risk
Financial Instruments with Off-Balance Sheet Risk	NOTE 15 Financial Instruments with Off‑Balance Sheet Risk In the normal course of business, the Bank has outstanding commitment and contingent liabilities, such as commitments to extend credit and standby letters of credit, which are not included in the accompanying consolidated financial statements. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments. The Bank uses the same credit policies in making such commitments as it does for instruments that are included in the statements of financial condition. At December 31, 2019 and 2018, the following financial instruments whose contract amount represents credit risk were approximately as follows: December 31, December 31, (dollars in thousands) 2019 2018 Commitments to extend credit $ 586,365 $ 529,890 Standby letters of credit 8,516 8,852 Total $ 594,881 $ 538,742 At December 31, 2019 and 2018 respectively, the Company had a $150 thousand letter of credit with the FHLB. Bank of North Dakota letters of credit are collateralized by loans pledged to the Bank of North Dakota in the amount of $242.0 million and $260.6 million at December 31, 2019, and 2018, respectively. Outstanding letters of credit at December 31, 2019 and 2018 were $20.0 million and $0, respectively. Commitments to extend credit are agreements to lend to a client as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each client’s creditworthiness on a case by case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include accounts receivable, inventory, property and equipment, and income producing commercial properties. The Company was not required to perform on any financial guarantees and did not incur any losses on its commitments during the past two years.

Legal Contingencies

Legal Contingencies	12 Months Ended
	Dec. 31, 2019
Legal Contingencies
Legal Contingencies	NOTE 16 Legal Contingencies The Company may be subject to claims and lawsuits which may arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of these claims and lawsuits is currently not expected to have a material adverse effect on the financial position of the Company.

Share-Based Compensation Plan

Share-Based Compensation Plan	12 Months Ended
	Dec. 31, 2019
Share-Based Compensation Plan
Share-Based Compensation Plan	NOTE 17 Share-Based Compensation Plan On May 6, 2019, the Company’s stockholders approved the Alerus Financial Corporation 2019 Equity Incentive Plan. This plan allows the compensation committee the ability to grant a wide variety of equity awards, including stock options, stock appreciation rights, restricted stock, restricted stock units, and cash incentive awards in such forms and amounts as it deems appropriate to accomplish the goals of the plan. Any shares subject to an award that is cancelled, forfeited, or expires prior to exercise or realization, either in full or in part, shall again become available for issuance under the plan, except if such shares are (a) tendered in payment of the exercise price of a stock option, (b) delivered to, or withheld by, the Company to satisfy any tax withholding obligation, or (c) covered by a stock-settled stock appreciation right or other awards that were not issued upon the settlement of the award. Shares vest, become exercisable and contain such other terms and conditions as determined by the compensation committee and set forth in individual agreements with the participant receiving the award. The maximum number of shares that may be delivered under the plan shall be 1,100,000 shares. As of December 31, 2019, no awards had been issued under the plan. Effective May 2009, the Company adopted the Alerus Financial Corporation 2009 Stock Award Plan (the 2009 Plan) providing for the grant of up to 1,350,000 shares of its common stock to employees, officers, consultants, independent contractors, and directors pursuant to awards of non‑qualified stock options, stock appreciation rights, restricted stock and restricted stock units, performance awards, or other stock‑based awards in such forms and amounts as deemed appropriate to accomplish the goals of the plan. Any shares subject to an award that is cancelled, forfeited, or expires prior to exercise or realization, either in full or in part, and shares used to satisfy the purchase of an award or tax obligations associated therewith shall again become available for issuance under the plan. Shares vest, become exercisable and contain such other terms and conditions as determined by the compensation committee and set forth in individual agreements with the participant receiving the award. In determining compensation expense, the fair value of the award will be determined on the date of grant expensed over the applicable vesting period. For performance awards, the Company estimates that the most likely outcome is the achievement of the target level and if during the performance period, additional information becomes available to lead the Company to believe a different level will be achieved for the performance period, the Company will reassess the number of units that will vest for the grant and adjust its compensation expense accordingly on a prospective basis. Following the adoption of the 2019 Equity Incentive Plan, no new awards may be granted from this plan. Amounts granted under the 2009 plan have been retroactively adjusted for all stock splits effected in the form of dividends. Activity in the stock plan for the years ended December 31, 2019, and 2018 is as follows: Year ended December 31, 2019 Year ended December 31, 2018 Weighted- Weighted- Average Grant Average Grant Awards Date Fair Value Awards Date Fair Value Restricted Stock and Restricted Stock Unit Awards Outstanding at beginning of period 337,014 $ 18.36 335,092 $ 15.36 Granted 70,617 19.87 86,371 22.58 Vested (53,994) 18.76 (79,753) 10.43 Forfeited or cancelled (6,426) 17.63 (4,696) 21.24 Outstanding at end of period 347,211 $ 18.64 337,014 $ 18.36 Unrecognized compensation expense related to share-based awards was $3.3 million and $3.2 million as of December 31, 2019 and 2018, respectively. The expense is expected to be recognized over a weighted-average period of 3.86 years and 4.35 years, as of December 31, 2019 and 2018, respectively. Compensation expense relating to stock awards under this plan was $1.5 million in 2019, $1.2 million in 2018, and $0.7 million in 2017. The number of unvested shares outstanding was 262,734 and 295,972 respectively, at December 31, 2019 and 2018. The number of unvested units outstanding was 84,477 and 41,042 at December 31, 2019 and 2018, respectively. Effective May 2009, the Company also adopted the Alerus Financial Corporation Stock Grant Plan for Non‑Employee Directors (the Retainer Plan) providing for the issuance of up to 180,000 shares of its common stock to non‑employee directors. The purpose of the Retainer Plan is to provide for payment for the annual retainer to directors in shares of Company common stock. The number of shares to be issued is based on the retainer divided by the fair market value per share as of the grant date, as defined in Note 1 (Significant Accounting Policies). Upon the issuance of shares under this plan, the then current value of the shares is charged to expense. Effective November 11, 2019, the Company terminated the Retainer Plan. Activity in the Retainer Plan for the years ended December 31, 2019, and 2018 is as follows: Number of Shares Available for Restricted future stock grant awards Balance as of December 31, 2017 35,842 144,158 Retainer shares awarded (10,017) 10,017 Balance as of December 31, 2018 25,825 154,175 Retainer shares awarded (13,144) 13,144 Plan expiration (12,681) — Balance as of December 31, 2019 — 167,319 Compensation expense relating to stock awards under this plan was $0.3 million in 2019, $0.3 million in 2018, and $0.3 million in 2017.

Employee Benefits

Employee Benefits	12 Months Ended
	Dec. 31, 2019
Employee Benefits
Employee Benefits	NOTE 18 Employee Benefits The Company maintains two employee retirement plans including an employee stock ownership plan (ESOP) and a defined contribution salary reduction plan (401k). The plans cover substantially all full‑time employees upon satisfying prescribed eligibility requirements for age and length of service. Contributions to the ESOP are determined annually by the Board of Directors, at its discretion, and allocated to participants based on a percentage of annual compensation. Shares of the Company stock within the ESOP are considered outstanding and dividends on these shares are charged to retained earnings. Under the 401k, the Company contributes 100% of amounts deferred by employees up to 3% of eligible compensation and 50% of amounts deferred by employees between 3% and 6% of eligible compensation. Retirement plan contributions are reflected under employee benefits in the income statement and for years ending December 31, 2019, 2018, and 2017 are as follows: December 31, December 31, December 31, (dollars in thousands) 2019 2018 2017 Salary reduction plan $ 2,599 $ 2,402 $ 2,317 ESOP 1,836 1,665 1,684 Total $ 4,435 $ 4,067 $ 4,001 Total ESOP shares outstanding 1,307,439 1,334,372 1,393,395 Prior to the Company’s initial public offering, in accordance with provisions of the Internal Revenue Code of 1986, as amended, or the Code, that are applicable to private companies, the terms of the Alerus Financial Corporation Employee Stock Ownership Plan, or ESOP, provided that ESOP participants had the right, for a specified period of time, to require us to repurchase shares of our common stock that were distributed to them by the ESOP. As a result, the ESOP‑owned shares were deducted from total stockholders’ equity in our consolidated balance sheets. The shares of common stock held by the ESOP are reflected in our consolidated balance sheets as a line item called “ESOP‑owned shares” appearing between total liabilities and stockholders’ equity. Upon the completion of our initial public offering and the listing of our common stock on the Nasdaq Capital Market, in September 2019, our repurchase liability was extinguished and the ESOP‑owned shares are now included in total stockholders’ equity. The Company’s ESOP repurchase obligation was $34 million as of December 31, 2018.

Noninterest Income

Noninterest Income	12 Months Ended
	Dec. 31, 2019
Noninterest Income
Noninterest Income	NOTE 19 Noninterest Income The following table presents the Company’s noninterest income for the years ended December 31, 2019, 2018, and 2017. Year ended December 31, (dollars in thousands) 2019 2018 2017 Retirement and benefits $ 63,811 $ 63,316 $ 62,390 Wealth management 15,502 14,900 13,953 Mortgage banking (1) 25,805 17,630 19,748 Service charges on deposit accounts 1,772 1,808 1,854 Net gains (losses) on investment securities (1) 357 85 (13) Other Interchange fees 1,972 2,005 1,997 Bank-owned life insurance income (1) 803 803 820 Misc. transactional fees 1,236 1,106 1,070 Other noninterest income 2,936 1,096 1,226 Total noninterest income $ 114,194 $ 102,749 $ 103,045 (1) Not within the scope of ASC 606. Contract balances: A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balances is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest income streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market value. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2019 and 2018, the Company did not have any significant contract balances. Contract acquisition costs : In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the company did not capitalize any contract acquisition costs.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
Income Taxes
Income Taxes	NOTE 20 Income Taxes The components of income tax expense (benefit) for the years ended December 31, 2019, 2018, and 2017 are as follows: Year ended December 31, (dollars in thousands) 2019 2018 2017 Federal Current $ 7,091 $ 5,801 $ 6,646 Deferred 267 (49) 2,975 Federal income tax 7,358 5,752 9,621 State Current 1,926 1,265 949 Deferred 72 155 734 State income tax 1,998 1,420 1,683 Deferred tax impairment and statutory rate change — — 6,210 Total income tax expense $ 9,356 $ 7,172 $ 17,514 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 are as follows: December 31, December 31, (dollars in thousands) 2019 2018 Deferred Tax Assets Allowance for loan losses $ 5,893 $ 5,566 Employee compensation and benefit accruals 2,542 2,167 Expense accruals 935 740 Identifiable intangible amortization 3,369 3,351 Deferred loan fees 266 462 Net operating loss carry forwards 236 266 Nonaccrual loan interest — 143 Unrealized gain on available‑for‑sale investment securities — 1,207 Other 341 533 Total deferred tax assets from temporary differences 13,582 14,435 Deferred Tax Liabilities Accumulated depreciation 1,431 1,079 Goodwill and intangible amortization 1,835 1,443 Servicing assets 965 1,137 Prepaid expenses 804 644 Unrealized loss on available‑for‑sale investment securities 649 — Other 7 47 Total deferred tax liabilities from temporary differences 5,691 4,350 Net Deferred Tax Assets $ 7,891 $ 10,085 The reconciliation between applicable income taxes and the amount computed at the applicable statutory Federal tax rate for years ending December 31, 2019, 2018, and 2017 is as follows: Year ended December 31, 2019 2018 2017 Percent of Percent of Percent of (dollars in thousands) Amount Pretax Income Amount Pretax Income Amount Pretax Income Taxes at statutory federal income tax rate $ 8,168 21.0 % $ 6,938 21.0 % $ 11,380 35.0 % Tax effect of: Tax exempt interest income (442) (1.1) (365) (1.1) (562) (1.7) State income taxes, net of federal benefits 1,618 4.2 1,399 4.2 1,414 4.3 Change in federal statutory tax rate — — — — 4,818 14.1 Deferred tax impairment — — — — 1,392 4.3 Nondeductible items and other 12 — (800) (2.4) (928) (2.9) Applicable income taxes $ 9,356 24.1 % $ 7,172 21.7 % $ 17,514 53.1 % On December 22, 2017, the U.S. Government enacted Public Law 115-97, also known as the Tax Cuts and Jobs Act. This resulted in the corporate income tax rate being reduced from the 35% level to 21%. The Company adjusted the carrying value of the deferred tax assets using the new tax rate, which resulted in a charge to earnings in the fourth quarter of 2017. Impairment expense of $4.8 million was recorded. The Company was unable to recognize certain tax benefits related to loans acquired in 2014 and recorded an impairment expense of $1.4 million in 2017. It is the opinion of management that the Company has no significant uncertain tax positions that would be subject to change upon examination.

Segment Reporting

Segment Reporting	12 Months Ended
	Dec. 31, 2019
Segment Reporting
Segment Reporting	NOTE 21 Segment Reporting The Company determines reportable segments based on the services offered, the significance of the services offered, the significance of those services to the Company’s financial statements, and management’s regular review of the operating results of those services. The Company operates through four operating segments: Banking, Retirement and Benefit Services, Wealth Management, and Mortgage. The financial information presented on each segment sets forth net interest income, provision for loan losses, direct noninterest income and direct noninterest expense before indirect allocations. Corporate Administration includes the indirect overhead and is set forth in the table below. The segment net income before taxes represents direct revenue and expense before indirect allocations and income taxes. The following table presents key metrics related to the Company’s segments for the periods presented: Year ended December 31, 2019 Retirement and Wealth Corporate (dollars in thousands) Banking Benefit Services Management Mortgage Administration Consolidated Net interest income $ 76,916 $ — $ — $ 1,245 $ (3,610) $ 74,551 Provision for loan losses 7,312 — — — — 7,312 Noninterest income 6,970 63,811 15,502 25,805 2,106 114,194 Noninterest expense 43,171 35,407 7,188 21,877 34,894 142,537 Net income before taxes $ 33,403 $ 28,404 $ 8,314 $ 5,173 $ (36,398) $ 38,896 Total assets $ 2,259,614 $ 39,021 $ 128 $ 47,703 $ 10,412 $ 2,356,878 Year ended December 31, 2018 Retirement and Wealth Corporate (dollars in thousands) Banking Benefit Services Management Mortgage Administration Consolidated Net interest income $ 77,919 $ — $ 62 $ 834 $ (3,591) $ 75,224 Provision for loan losses 8,599 — — 11 — 8,610 Noninterest income 6,921 63,316 14,900 17,630 (18) 102,749 Noninterest expense 42,605 36,414 6,824 17,199 33,283 136,325 Net income before taxes $ 33,636 $ 26,902 $ 8,138 $ 1,254 $ (36,892) $ 33,038 Total assets $ 2,120,249 $ 41,492 $ 3,235 $ 14,600 $ (506) $ 2,179,070 Year ended December 31, 2017 Retirement and Wealth Corporate (dollars in thousands) Banking Benefit Services Management Mortgage Administration Consolidated Net interest income $ 70,377 $ — $ 57 $ 740 $ (3,504) $ 67,670 Provision for loan losses 3,280 — — — — 3,280 Noninterest income 7,180 62,390 13,953 19,748 (226) 103,045 Noninterest expense 35,996 41,977 7,640 17,448 31,859 134,920 Net income before taxes $ 38,281 $ 20,413 $ 6,370 $ 3,040 $ (35,589) $ 32,515 Total assets $ 2,078,013 $ 38,118 $ 2,718 $ 18,669 $ (1,437) $ 2,136,081 Banking The Banking division offers a complete line of loan, deposit, cash management, and treasury services through fifteen offices in North Dakota, Minnesota, and Arizona. These products and services are supported through web and mobile based applications. The majority of the Company’s assets and liabilities are in the Banking segments’ balance sheet. Retirement and Benefit Services Retirement and Benefit Services provides the following services nationally: recordkeeping and administration services to qualified retirement plans; ESOP trustee, recordkeeping, and administration; investment fiduciary services to retirement plans; health savings account, flex spending account, and Cobra recordkeeping and administration services to employers; payroll and HIRS services for employers. In addition, the division operates within the banking markets as well as in Albert Lea, Minnesota, Lansing, Michigan, Manchester, New Hampshire and 13 satellite offices. Wealth Management The Wealth Management division provides advisory and planning services, investment management, and trust and fiduciary services to clients across the Company’s footprint. Mortgage The mortgage division offers first and second mortgage loans through a centralized mortgage unit in Minneapolis, Minnesota as well as through the Banking office locations.

Earnings Per Share

Earnings Per Share	12 Months Ended
	Dec. 31, 2019
Earnings Per Share
Earnings Per Share	NOTE 22 Earnings Per Share Beginning in the third quarter of 2019, the Company elected to prospectively use the two-class method in calculating earnings per share due to the restricted stock awards and restricted stock units qualifying as participating securities. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to common dividends declared (or accumulated) and participating rights in undistributed earnings. Average shares of common stock for diluted net income per common share include shares to be issued upon the vesting of restricted stock awards and restricted stock units granted under the Company’s share-based compensation plans. The calculation of basic and diluted earnings per share using the two-class method for the year ending December 31, 2019 is presented below: Year ended December 31, (dollars and shares in thousands, except per share data) 2019 Net income $ 29,540 Dividends and undistributed earnings allocated to participating securities 647 Net income available to common shareholders $ 28,893 Weighted-average common shares outstanding for basic earnings per share 14,736 Dilutive effect of stock-based awards 357 Weighted-average common shares outstanding for diluted earnings per share 15,093 Earnings per common share: Basic earnings per common share $ 1.96 Diluted earnings per common share $ 1.91 For the years ending December 31, 2018 and 2017, the basic and diluted earnings per share were calculated using the treasury stock method, as presented in the table below. The Company determined that the impact to diluted earnings per share would be immaterial if calculated under the two-class method for the years ending December 31, 2018 and 2017. The calculation of basic and diluted earnings per share using the treasury stock method for the years ending December 31, 2018 and 2017 is presented below: Year ended December 31, (dollars and shares in thousands, except per share data) 2018 2017 Basic: Net income attributable to common shareholders $ 25,866 $ 15,001 Weighted-average common shares outstanding 13,763 13,653 Basic earnings per common share $ 1.88 $ 1.10 Diluted: Net income attributable to common shareholders 25,866 15,001 Weighted-average common shares outstanding 13,763 13,653 Add: Dilutive effect of stock-based awards 300 354 Weighted-average common shares outstanding for diluted EPS 14,063 14,007 Diluted earnings per common share $ 1.84 1.07

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2019
Related Party Transactions
Related Party Transactions	NOTE 23 Related Party Transactions In the ordinary course of business, the Bank has granted loans to executive officers, directors, and their affiliates (related parties). These loans are made on substantially the same terms and conditions as those prevailing at the time for comparable transactions with outsiders and are not considered to involve more than the normal risk of collectability. The following table presents the activity associated with loans made between related parties at December 31, 2019 and 2018: Year ended December 31, (dollars in thousands) 2019 2018 Beginning balance $ 12,611 $ 19,905 New loans and advances 498 837 Repayments (588) (3,346) Changes to related parties (1) (12,214) (4,785) Ending balance $ 307 $ 12,611 (1) Represents changes related to directors that retired from our Board during the year. Deposits from related parties held by the Bank at December 31, 2019 and 2018 amounted to $0.5 million and $5.6 million, respectively.

Derivative Instruments

Derivative Instruments	12 Months Ended
	Dec. 31, 2019
Derivative Instruments
Derivative Instruments	NOTE 24 Derivative Instruments The Company maintains an overall interest rate risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate volatility. The Company’s goal is to manage interest rate sensitivity by modifying the repricing or maturity characteristics of certain balance sheet assets and liabilities so that the net interest margin is not, on a material basis, adversely affected by movements in interest rates. As a result of the interest rate fluctuations, hedged assets and liabilities will appreciate or depreciate in market value. The effect of this unrealized appreciation or depreciation will generally be offset by income or loss on the derivative instruments that are linked to the hedged assets and liabilities. The Company views this strategy as a prudent management of interest rate sensitivity, such that earnings are not exposed to undue risk presented by changes in interest rate risks. Derivative instruments that are used as part of the Company’s interest rate risk management strategy include interest rate swaps, futures contracts, and options contracts with indices that relate to the pricing of specific balance sheet assets and liabilities. Interest rate swaps generally involve the exchange of fixed and variable rate interest payments between two parties, based on a common notional principal amount and maturity date. Interest rate options represent contracts that allow the holder of the option to (1) receive cash or (2) purchase, sell, or enter into a financial instrument at a specified price within a specified period of time. Certain of these contracts also provide the Company with the right to enter into interest‑rate swaps and cap and floor agreements with the writer of the option. By using derivative instruments, the Company is exposed to credit and market risk. If the counterparty fails to perform, credit risk is equal to the extent of the estimated fair value gain in a derivative. When the estimated fair value of a derivative contract is positive, this generally indicates that the counterparty owes the Company and therefore, creates a repayment risk for the Company. When the estimated fair value of a derivative contract is negative, the Company owes the counterparty and, therefore, it has no repayment risk. The Company minimizes the credit (or repayment) risk in derivative instruments by entering into transactions with high‑quality counterparties that are reviewed periodically by the Company’s credit committee. The Company also maintains a policy of requiring that all derivative contracts be governed by an International Swaps and Derivatives Association Master Agreement. Various derivatives, including interest rate, commodity, equity, credit, and foreign exchange contracts, are offered to clients but usually offset the exposure from such contracts by purchasing other financial contracts. The customer accommodations and any offsetting financial contracts are treated as freestanding derivatives. Free‑standing derivatives also include derivatives entered into for risk management that do not otherwise qualify for hedge accounting, including domestic hedge derivatives. The following table presents the total notional or contractual amounts and estimated fair values for derivatives not designated as hedging instruments that are recorded on the balance sheet in other assets or other liabilities. Customer accommodation, trading, and other free‑standing derivatives are recorded on the balance sheet at fair value in trading assets or other liabilities at December 31, 2019 and 2018: December 31, 2019 December 31, 2018 Fair Notional Fair Notional (dollars in thousands) Value Amount Value Amount Asset Derivatives Consolidated Balance Sheet Location Interest rate lock commitments Other assets $ 1,228 $ 45,715 $ 12 $ 33,858 Forward loan sales commitments Other assets 393 12,784 — — TBA mortgage backed securities Other assets — — — — Total asset derivatives $ 1,621 $ 58,499 $ 12 $ 33,858 Liability Derivatives Interest rate lock commitments Accrued expenses and other liabilities $ — $ — $ — $ — Forward loan sales commitments Accrued expenses and other liabilities — — 7 2,956 TBA mortgage backed securities Accrued expenses and other liabilities 109 68,500 — — Total liability derivatives $ 109 $ 68,500 $ 7 $ 2,956 The Company has third party agreements that require a minimum dollar transfer amount upon a margin call. This requirement is dependent on certain specified credit measures. The amount of collateral posted with third parties at December 31, 2019 and 2018, respectively was $0.9 and $0. The amount of collateral posted with third parties is deemed to be sufficient to collateralize both the fair market value change a well as any additional amounts that may be required as a result of a change in the specified credit measures. The gain (loss) recognized on derivatives instruments for years ended December 31, 2019, 2018, and 2017 was as follows: Year ended Consolidated Statements of December 31, December 31, December 31, (dollars in thousands) Income Location 2019 2018 2017 Interest rate lock commitments Mortgage banking $ 1,216 $ 14 $ 70 Forward loan sales commitments Mortgage banking 400 (16) (96) TBA mortgage backed securities Mortgage banking (109) — — Total gain/(loss) from derivative instruments $ 1,507 $ (2) $ (26)

Regulatory Matters

Regulatory Matters	12 Months Ended
	Dec. 31, 2019
Regulatory Matters
Regulatory Matters	NOTE 25 Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s consolidated financial statements. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of common equity tier 1, tier 1, and total capital (as defined in the regulations) to risk weighted assets (as defined) and of tier 1 capital (as defined) to average assets (as defined). Management believes at December 31, 2019 and 2018, the Bank met all of the capital adequacy requirements to which it is subject. On August 28, 2018, the Federal Reserve Board, or the Board, issued an interim final rule expanding the applicability of the Board’s Small Bank Holding Company Policy Statement, as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018. The interim final rule raised the Small Bank Holding Company Policy Statement’s asset threshold from $1 billion to $3 billion in total consolidated assets, and as a result, before the initial public offering, the holding company was exempted from all regulatory guidelines, to which it previously had been subject, as long as it does not engage in significant nonbanking activities, conduct off-balance sheet activities, or have a material amount of debt or equity registered with the SEC. Now that the Company is a public reporting company with its common stock registered with the SEC, the Company does not meet the qualifications of the Small Bank Holding Company Policy Statement. As of December 31, 2019, the most recent notification from the Federal Deposit Insurance Corporation, categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since the notification that management believe have changed in the Bank’s category. Actual capital amounts and ratios for the Bank and the Company (consolidated) at December 31, 2019 and 2018 are presented in the following table: December 31, 2019 Minimum to be Requirements Well Capitalized for Capital Under Prompt Actual Adequacy Purposes Corrective Action (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Common equity tier 1 capital to risk weighted assets Consolidated $ 239,672 12.48 % 86,452 4.50 % N/A N/A Bank 228,512 11.91 % 86,362 4.50 % 124,745 6.50 % Tier 1 capital to risk weighted assets . Consolidated 247,866 12.90 % 115,270 6.00 % N/A N/A Bank 228,512 11.91 % 115,149 6.00 % 153,532 8.00 % Total capital to risk weighted assets Consolidated 321,415 16.73 % 153,693 8.00 % N/A N/A Bank 252,436 13.15 % 153,532 8.00 % 191,915 10.00 % Tier 1 capital to average assets Consolidated 247,866 11.05 % 91,504 4.00 % N/A N/A Bank 228,512 10.20 % 89,615 4.00 % 112,018 5.00 % December 31, 2018 Minimum to be Requirements Well Capitalized for Capital Under Prompt Actual Adequacy Purposes Corrective Action (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Common equity tier 1 capital to risk weighted assets Consolidated $ 151,745 8.43 % N/A N/A N/A N/A Bank 204,680 11.39 % 80,866 4.50 % 116,806 6.50 % Tier 1 capital to risk weighted assets Consolidated 159,774 8.87 % N/A N/A N/A N/A Bank 204,680 11.39 % 107,821 6.00 % 143,761 8.00 % Total capital to risk weighted assets Consolidated 231,510 12.86 % N/A N/A N/A N/A Bank 226,854 12.62 % 143,806 8.00 % 179,758 10.00 % Tier 1 capital to average assets Consolidated 159,774 7.51 % N/A N/A N/A N/A Bank 204,680 9.63 % 85,018 4.00 % 106,272 5.00 % The Bank is subject to certain restrictions on the amount of dividends that it may pay without prior regulatory approval. The Bank normally restricts dividends to a lesser amount. In addition, the Company must adhere to various U.S. Department of Housing and Urban Development, or HUD, regulatory guidelines including required minimum capital and liquidity to maintain their Federal Housing Administration approval status. Failure to comply with the HUD guidelines could result in withdrawal of this certification. As of December 31, 2019 and 2018 the Company was in compliance with HUD guidelines.

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	12 Months Ended
	Dec. 31, 2019
Fair Value of Assets and Liabilities
Fair Value of Assets and Liabilities	NOTE 26 Fair Value of Assets and Liabilities The Company categorizes its assets and liabilities measured at estimated fair value into a three level hierarchy based on the priority of the inputs to the valuation technique used to determine estimated fair value. The estimated fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the estimated fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the estimated fair value measurement. Assets and liabilities valued at estimated fair value are categorized based on the following inputs to the valuation techniques as follows: Level 1 —Inputs that utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that an entity has the ability to access. Level 2 —Inputs that include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Estimated fair values for these instruments are estimated using pricing models, quoted prices of investment securities with similar characteristics, or discounted cash flows. Level 3 —Inputs that are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. Subsequent to initial recognition, the Company may re‑measure the carrying value of assets and liabilities measured on a nonrecurring basis to estimated fair value. Adjustments to estimated fair value usually result when certain assets are impaired. Such assets are written down from their carrying amounts to their estimated fair value. Professional standards allow entities the irrevocable option to elect to measure certain financial instruments and other items at estimated fair value for the initial and subsequent measurement on an instrument‑by‑instrument basis. The Company adopted the policy to value certain financial instruments at estimated fair value. The Company has not elected to measure any existing financial instruments at estimated fair value; however, it may elect to measure newly acquired financial instruments at estimated fair value in the future. Recurring Basis The Company uses estimated fair value measurements to record estimated fair value adjustments to certain assets and liabilities and to determine estimated fair value disclosures. For additional information on how the Company measures estimated fair value refer to Note 1 (Significant Accounting Policies). The following tables present the balances of the assets and liabilities measured at estimated fair value on a recurring basis at December 31, 2019 and 2018: December 31, 2019 (dollars in thousands) Level 1 Level 2 Level 3 Total Trading securities U.S. treasury and government agencies $ — $ — $ — $ — Available-for-sale and equity securities U.S. treasury and government agencies $ — $ 21,240 $ — $ 21,240 Obligations of state and political agencies — 68,648 — 68,648 Mortgage backed securities Residential agency — 182,538 — 182,538 Commercial — 30,685 — 30,685 Asset backed securities — 144 — 144 Corporate bonds — 7,095 — 7,095 Equity securities 2,808 — — 2,808 Total available-for-sale and equity securities $ 2,808 $ 310,350 $ — $ 313,158 Other assets Derivatives $ — $ 1,621 $ — $ 1,621 Other liabilities Derivatives $ — $ 109 $ — $ 109 December 31, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Trading securities U.S. treasury and government agencies $ — $ 1,539 $ — $ 1,539 Available-for-sale and equity securities U.S. treasury and government agencies $ — $ 19,142 $ — $ 19,142 Obligations of state and political agencies — 66,387 — 66,387 Mortgage backed securities Residential agency — 126,998 — 126,998 Commercial — 28,767 — 28,767 Asset backed securities — 399 — 399 Corporate bonds — 8,481 — 8,481 Equity securities 3,165 — — 3,165 Total available-for-sale and equity securities $ 3,165 $ 250,174 $ — $ 253,339 Other assets Derivatives $ — $ 12 $ — $ 12 Other liabilities Derivatives $ — $ 7 $ — $ 7 The following is a description of the valuation methodologies used for instruments measured at estimated fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy. Investment Securities When available, the Company uses quoted market prices to determine the estimated fair value of investment securities; such items are classified in Level 1 of the estimated fair value hierarchy. For the Company’s investment securities for which quoted prices are not available for identical investment securities in an active market, the Company determines estimated fair value utilizing vendors who apply matrix pricing for similar bonds for which no prices are observable or may compile prices from various sources. These models are primarily industry‑standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market, and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. Estimated fair values from these models are verified, where possible, against quoted prices for recent trading activity of assets with similar characteristics to the security being valued. Such methods are generally classified as Level 2. However, when prices from independent sources vary, cannot be obtained, or cannot be corroborated, a security is generally classified as Level 3. Derivatives All of the Company’s derivatives are traded in over‑the‑counter markets where quoted market prices are not readily available. For these derivatives, estimated fair value is measured using internally developed models that use primarily market observable inputs, such as yield curves and option volatilities, and accordingly, classify as Level 2. Examples of Level 2 derivatives are basic interest rate swaps and forward contracts. Any remaining derivative estimated fair value measurements using significant assumptions that are unobservable are classified as Level 3. Level 3 derivatives include interest rate lock commitments written for residential mortgage loans that are held for sale. Nonrecurring Basis Certain assets are measured at estimated fair value on a nonrecurring basis. These assets are not measured at estimated fair value on an ongoing basis; however, they are subject to estimated fair value adjustments in certain circumstances, such as when there is evidence of impairment or a change in the amount of previously recognized impairment. Net impairment losses related to nonrecurring estimated fair value measurements of certain assets for the years ended December 31, 2019 and 2018 consisted of the following: December 31, 2019 (dollars in thousands) Level 2 Level 3 Total Impairment Loans held for sale $ 46,846 $ — $ 46,846 $ — Loans held for branch sale — — — — Impaired loans — 4,816 4,816 3,138 Foreclosed assets — 8 8 — Servicing rights — 3,845 3,845 — December 31, 2018 (dollars in thousands) Level 2 Level 3 Total Impairment Loans held for sale $ 14,486 $ — $ 14,486 $ — Loans held for branch sale — 32,031 32,031 — Impaired loans — 4,022 4,022 2,538 Foreclosed assets — 84 84 245 Servicing rights — 4,623 4,623 — Loans Held for Sale Loans originated and held for sale are carried at the lower of cost or estimated fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically these quotes include a premium on the sale and thus these quotes indicate estimated fair value of the held for sale loans is greater than cost. On January 15, 2019, the Bank entered into an agreement with a third party to sell the loans of two branch locations in Duluth, Minnesota, which totaled $32.0 million as of December 31, 2018. The estimated fair value in the table above is based on the agreed upon purchase price in the sales contract. The measurements are classified as Level 3. The transaction closed on April 26, 2019. Refer to Note 29 (Branch Sale) for additional information pertaining to the sale. Impairment losses for loans held for sale that are carried at the lower of cost or estimated fair value represent additional net write‑downs during the period to record these loans at the lower of cost or estimated fair value subsequent to their initial classification as loans held for sale. Impaired Loans In accordance with the provisions of the loan impairment guidance, loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms are measured for impairment. Allowable methods for estimating fair value include using the estimated fair value of the collateral for collateral dependent loans or, where a loan is determined not to be collateral dependent, using a discounted cash flow method. The estimated fair value method requires obtaining a current independent appraisal of the collateral and applying a discount factor, if necessary, to the appraised value and including costs to the sell. Because many of these inputs are not observable, the measurements are classified as Level 3. Foreclosed Assets Foreclosed assets are recorded at estimated fair value based on property appraisals, less estimated selling costs, at the date of the transfer with any impairment amount charged to the allowance for loan losses. Subsequent to the transfer, foreclosed assets are carried at the lower of cost or estimated fair value, less estimated selling costs with changes in the estimated fair value or any impairment amount recorded in other noninterest expense. Fair value measurements may be based upon appraisals, third‑party price opinions, or internally developed pricing methods. These measurements are classified as Level 3. Servicing Rights Servicing rights do not trade in an active market with readily observable prices. Accordingly, the estimated fair value of servicing rights is determined using a valuation model that calculates the present value of estimated future net servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, discount rate, cost to service, escrow account earnings, contractual servicing fee income, ancillary income, and late fees. Servicing rights are carried at lower of cost or market value, and therefore can be subject to estimated fair value measurements on a nonrecurring basis. Estimated fair value measurements of servicing rights use significant unobservable inputs and accordingly, are classified as Level 3. The Company obtains the estimated fair value of servicing rights from an independent third party pricing service and records the unadjusted estimated fair values in the financial statements. The valuation techniques and significant unobservable inputs used to measure Level 3 estimated fair values at December 31, 2019 and 2018, are as follows: December 31, 2019 (dollars in thousands) Weighted Asset Type Valuation Technique Unobservable Input Fair Value Range Average Impaired loans Appraisal value Property specific adjustment 4,816 N/A N/A Foreclosed assets Appraisal value Property specific adjustment 8 N/A N/A Servicing rights Discounted cash flows Prepayment speed assumptions 3,845 123-267 194 Discount rate 9.4 % 9.4 % December 31, 2018 (dollars in thousands) Weighted Asset Type Valuation Technique Unobservable Input Fair Value Range Average Loans held for branch sale (1) Discounted cash flows Sales agreement 32,031 N/A N/A Impaired loans Appraisal value Property specific adjustment 4,022 N/A N/A Foreclosed assets Appraisal value Property specific adjustment 84 N/A N/A Servicing rights Discounted cash flows Prepayment speed assumptions 4,623 104 - 211 130 Discount rate 10.5 % 10.5 % (1) The significant unobservable input related to the loans held for branch sale was the third party sales agreement the Bank entered into on January 15, 2019. Disclosure of estimated fair value information about financial instruments, for which it is practicable to estimate that value, is required whether or not recognized in the consolidated balance sheets. In cases in which quoted market prices are not available, estimated fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. In that regard, the derived estimated fair value estimates cannot be substantiated by comparison to independent markets and, in many cases could not be realized in immediate settlement of the instruments. Certain financial instruments with an estimated fair value that is not practicable to estimate and all non‑financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate estimated fair value amounts presented do not necessarily represent the underlying value of the Company. The following disclosures represent financial instruments in which the ending balances at December 31, 2019 and 2018 are not carried at estimated fair value in their entirety on the consolidated balance sheets. Cash and Due from Banks and Accrued Interest The carrying amounts reported in the Consolidated Balance Sheets approximate those assets and liabilities estimated fair values. Loans For variable‑rate loans that reprice frequently and with no significant change in credit risk, estimated fair values are based on carrying values. The estimated fair values of other loans are estimated using discounted cash flow analysis, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Bank‑Owned Life Insurance Bank‑owned life insurance is carried at the amount due upon surrender of the policy, which is also the estimated fair value. This amount was provided by the insurance companies based on the terms of the underlying insurance contract. Deposits The estimated fair values of demand deposits are, by definition, equal to the amount payable on demand at the consolidated balance sheet date. The estimated fair values of fixed‑rate certificates of deposit are estimated using a discounted cash flow calculation that applies current incremental interest rates being offered on certificates of deposit to a schedule of aggregated expected monthly maturities of the outstanding certificates of deposit. Deposits Held for Sale On January 15, 2019, the Bank entered into an agreement with a third party to sell the deposits of two branch locations in Duluth, Minnesota, which totaled $24.2 million as of December 31, 2018. The estimated fair value in the table below is based on the carrying value of the deposits, less the premium the Company expects to receive in accordance with the sales contract, when the transactions are expected to be completed in 2019. The transaction closed on April 26, 2019. Refer to Note 29 (Branch Sale) for additional information pertaining to the sale. Short‑Term Borrowings and Long‑Term Debt For variable‑rate borrowings that reprice frequently, estimated fair values are based on carrying values. The estimated fair value of fixed‑rate borrowings are estimated using discounted cash flow analysis, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Off‑Balance Sheet Credit‑Related Commitments Off‑balance sheet credit related commitments are generally of short‑term nature. The contract amount of such commitments approximates their estimated fair value since the commitments are comprised primarily of unfunded loan commitments which are generally priced at market at the time of funding. The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments are as follows: December 31, 2019 Carrying Estimated Fair Value (dollars in thousands) Amount Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ 144,006 $ 144,006 $ — $ — $ 144,006 Loans 1,697,355 — — 1,693,824 1,693,824 Accrued interest receivable 7,551 7,551 — — 7,551 Bank-owned life insurance 31,566 — 31,566 — 31,566 Financial Liabilities Noninterest-bearing transaction $ 577,704 $ — $ 577,704 $ — $ 577,704 Interest-bearing transaction 1,197,530 — 1,197,530 — 1,197,530 Time deposits 196,082 — — 196,182 196,182 Short-term borrowings — — — — — Long-term debt 58,769 — 58,239 — 58,239 Accrued interest payable 1,038 1,038 — — 1,038 December 31, 2018 Carrying Estimated Fair Value (dollars in thousands) Amount Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ 40,651 $ 40,651 $ — $ — $ 40,651 Loans 1,679,676 — — 1,663,401 1,663,401 Accrued interest receivable 7,645 7,645 — — 7,645 Bank-owned life insurance 30,763 — 30,763 — 30,763 Financial Liabilities Noninterest-bearing transaction $ 550,640 $ — $ 550,640 $ — $ 550,640 Interest-bearing transaction 1,053,869 — 1,053,869 — 1,053,869 Time deposits 170,587 — — 172,616 172,616 Deposits held for sale 24,197 — — 22,019 22,019 Short-term borrowings 93,460 93,460 — — 93,460 Long-term debt 58,824 — 59,988 — 59,988 Accrued interest payable 1,879 1,879 — — 1,879

Parent Company Only Financial S

Parent Company Only Financial Statements	12 Months Ended
	Dec. 31, 2019
Parent Company Only Financial Statements
Parent Company Only Financial Statements	NOTE 27 Parent Company Only Financial Statements The condensed financial statements of Alerus Financial Corporation (parent company only) are presented below. These statements should be read in conjunction with the Notes to the Consolidated Financial Statements Alerus Financial Corporation Parent Company Condensed Balance Sheets December 31, December 31, (dollars in thousands) 2019 2018 Assets Cash and cash equivalents $ 73,647 $ 8,207 Land, premises and equipment, net 318 433 Investment in subsidiaries 274,878 250,252 Deferred income taxes, net 998 933 Other assets 1,034 1,538 Total assets $ 350,875 $ 261,363 Liabilities and Stockholders’ Equity Long‑term debt $ 58,769 $ 58,824 Accrued expenses and other liabilities 6,378 5,585 Total liabilities 65,147 64,409 Commitments and contingent liabilities ESOP‑owned shares — 34,494 Stockholders’ equity 285,728 196,954 Less: ESOP‑owned shares — (34,494) Total stockholders’ equity 285,728 162,460 Total liabilities and stockholders’ equity $ 350,875 $ 261,363 Alerus Financial Corporation Parent Company Condensed Statements of Income Year ended December 31, (dollars in thousands) 2019 2018 2017 Income Dividends from subsidiaries $ 15,000 $ 11,470 $ 7,845 Other income 15 14 16 Total operating income 15,015 11,484 7,861 Expenses 5,999 5,964 5,038 Income before equity in undistributed income 9,016 5,520 2,823 Equity in undistributed income of subsidiaries 19,089 18,852 10,755 Income before income taxes 28,105 24,372 13,578 Income tax benefit 1,435 1,494 1,423 Net income $ 29,540 $ 25,866 $ 15,001 Alerus Financial Corporation Parent Company Condensed Statements of Cash Flows Year ended December 31, (dollars in thousands) 2019 2018 2017 Operating activities Net income $ 29,540 $ 25,866 $ 15,001 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed income of subsidiaries (19,089) (18,852) (10,755) Depreciation and amortization 115 116 116 Stock‑based compensation cost 251 370 315 Other, net 2,676 1,314 4,904 Net cash provided by operating activities 13,493 8,814 9,581 Investing activities Investment in bank subsidiary — — — Acquisitions, net cash acquired — — — Net cash provided by investing activities — — — Financing activities Cash dividends paid on common stock (8,909) (7,456) (6,729) Repurchase of common stock (1,948) (356) (294) Proceeds from the issuance of common stock in initial public offering net of issuance costs 62,804 — — Net cash provided by financing activities 51,947 (7,812) (7,023) Change in cash and cash equivalents 65,440 1,002 2,558 Cash and cash equivalents at beginning of period 8,207 7,205 4,647 Cash and cash equivalents at end of period $ 73,647 $ 8,207 $ 7,205

Quarterly Condensed Financial I

Quarterly Condensed Financial Information (Unaudited)	12 Months Ended
	Dec. 31, 2019
Quarterly Condensed Financial Information (Unaudited)
Quarterly Condensed Financial Information (Unaudited)	Note 28 Quarterly Condensed Financial Information (Unaudited) The following tables present the unaudited quarterly condensed financial information for the years ended December 31, 2019 and 2018: 2019 Quarter Ended (dollars in thousands, except per share data) March 31, June 30, September 30, December 31, Interest income $ 23,310 $ 23,478 $ 23,625 $ 22,887 Interest expense 4,190 5,187 4,944 4,428 Net interest income 19,120 18,291 18,681 18,459 Provision for loan losses 2,220 1,797 1,498 1,797 Net interest income after provision for loan losses 16,900 16,494 17,183 16,662 Noninterest income 25,074 29,984 29,580 29,556 Noninterest expense 33,514 35,261 37,327 36,435 Income before income taxes 8,460 11,217 9,436 9,783 Income tax expense 2,024 2,869 2,332 2,131 Net income $ 6,436 $ 8,348 $ 7,104 $ 7,652 Per common share data Basic earnings per common share $ 0.47 $ 0.60 $ 0.49 $ 0.44 Diluted earnings per common share $ 0.46 $ 0.59 $ 0.48 $ 0.43 2018 Quarter Ended (dollars in thousands, except per share data) March 31, June 30, September 30, December 31, Interest income $ 20,458 $ 21,816 $ 22,197 $ 23,231 Interest expense 2,316 2,916 3,268 3,978 Net interest income 18,142 18,900 18,929 19,253 Provision for loan losses 1,530 4,020 1,530 1,530 Net interest income after provision for loan losses 16,612 14,880 17,399 17,723 Noninterest income 24,256 26,094 26,258 26,141 Noninterest expense 32,270 33,808 34,336 35,911 Income before income taxes 8,598 7,166 9,321 7,953 Income tax expense 1,734 1,567 1,951 1,920 Net income $ 6,864 $ 5,599 $ 7,370 $ 6,033 Per common share data Basic earnings per common share $ 0.50 $ 0.41 $ 0.53 $ 0.44 Diluted earnings per common share $ 0.49 $ 0.40 $ 0.52 $ 0.43

Branch Sale

Branch Sale	12 Months Ended
	Dec. 31, 2019
Branch Sale
Branch Sale	NOTE 29 Branch Sale On January 15, 2019, the Bank announced an agreement to sell the Bank’s branch offices located in Duluth, Minnesota, including loans and deposits attributable to those offices, to another financial institution. The Bank decided to exit the Duluth market to reallocate resources to the Minneapolis-St. Paul-Bloomington metropolitan statistical area, which is a higher growth market in the state, and its other core markets in the Phoenix-Mesa-Scottsdale metropolitan statistical area, and in Fargo and Grand Forks, North Dakota. The loans and deposits were classified as held for sale in the consolidated financial statements as of December 31, 2018. The transaction closed on April 26, 2019. The loans and deposits associated with this transaction totaled approximately $28.3 million and $19.4 million, respectively, as of the closing date. A pre-tax gain on the sale was recognized in the amount of $1.5 million.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2019
Subsequent Events
Subsequent Events	NOTE 30 Subsequent Events Subsequent to year end, the World Health Organization declared the spread of Coronavirus Disease (COVID-19) a worldwide pandemic. The COVID-19 pandemic is having significant effects on global markets, supply chains, businesses, and communities. Specific to the Company, COVID-19 may impact various parts of its 2020 operations and financial results including but not limited to additional loan loss reserves, costs for emergency preparedness, or potential shortages of personnel. Management believes the Company is taking appropriate actions to mitigate the negative impact. However, the full impact of COVID-19 is unknown and cannot be reasonably estimated as these events occurred subsequent to year end and are still developing. During the period from January 1, 2020 through March 26, 2020, both domestic and international equity markets have experienced significant declines. These losses are not reflected in the financial statements as of and for the year ended December 31, 2019 as these events occurred subsequent to year end and are still developing. Subsequent events have been evaluated through March 26, 2020, which is the date these financial statements were issued.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Significant Accounting Policies
Initial Public Offering	Initial Public Offering On September 17, 2019, the Company sold 2,860,000 shares of common stock in its initial public offering. On September 25, 2019, the Company sold an additional 429,000 shares of common stock pursuant to the exercise in full, by the underwriters, of their option to purchase additional shares. The aggregate offering price for the shares sold by the Company was $69.1 million, and after deducting $4.7 million of underwriting discounts and $1.6 million of offering expenses paid to third parties, the Company received total net proceeds of $62.8 million. Policies which materially affect the determination of financial position, cash flows, and results of operations are summarized below.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Alerus Financial Corporation and its subsidiaries in which Alerus Financial Corporation has a controlling interest. Significant intercompany balances and transactions have been eliminated in consolidation. In the normal course of business, the Company may enter into a transaction with a variable interest entity, or VIE. VIE’s are legal entities whose investors lack the ability to make decisions about the entity’s activities, or whose equity investors do not have the right to receive the residual returns of the entity. The applicable accounting guidance requires the Company to perform ongoing quantitative and qualitative analysis to determine whether it must consolidate any VIE. The Company does not have any ownership interest in or exert any control over any VIE, and thus no VIE’s are included in the consolidated financial statements.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the valuation of investment securities, determination of the allowance for loan losses, valuation of reporting units for the purpose of testing goodwill and other intangible assets for impairment, valuation of deferred tax assets, and fair values of financial instruments.
Emerging Growth Company	Emerging Growth Company The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the “JOBS Act”, and may take advantage of certain exemptions from various reporting requirements that are applicable to public companies that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. In addition, even if the Company complies with the greater obligations of public companies that are not emerging growth companies, the Company may avail itself of the reduced requirements applicable to emerging growth companies from time to time in the future, so long as the Company is an emerging growth company. The Company will continue to be an emerging growth company until the earliest to occur of: (1) the end of the fiscal year following the fifth anniversary of the date of the first sale of common equity securities under the Company’s Registration Statement on Form S-1, which was declared effective by the U.S. Securities and Exchange Commission, or SEC, on September 12, 2019; (2) the last day of the fiscal year in which the Company has $1.07 billion or more in annual revenues; (3) the date on which the Company is deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended, or the Exchange Act; or (4) the date on which the Company has, during the previous three-year period, issued publicly or privately, more than $1.0 billion in non-convertible debt securities. Management cannot predict if investors will find the Company’s common stock less attractive because it will rely on the exemptions. If some investors find the Company’s common stock less attractive as a result, there may be a less active trading market for its common stock and the Company’s stock price may be more volatile. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933 for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company elected to take advantage of the benefits of this extended transition period.
Concentrations of Credit Risk	Concentrations of Credit Risk Substantially all of the Company’s lending activities are with clients located within North Dakota, Minnesota, and Arizona. At December 31, 2019 and 2018 respectively, 27.8% and 30.0% of the Company’s loan portfolio consisted of commercial and industrial loans that were not secured by real estate. The Company does not have any significant loan concentrations in any one industry or client. Note 5 discusses the Company’s loan portfolio. The Company invests in a variety of investment securities and does not have any significant concentrations in any one industry or to any one issuer. Note 4 discusses the Company’s investment securities portfolio.
Cash and Cash Equivalents	Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, cash and due from banks includes cash and cash equivalents, balances due from banks, and federal funds sold, all of which have an original maturity within 90 days. Cash flows from loans and deposits are reported net. Interest‑bearing deposits in banks are carried at cost.
Investment Securities	Investment Securities Debt securities that are held for short‑term resale are classified as trading securities and carried at estimated fair value, with increases and decreases in estimated fair value recognized in net gains (losses) on investment securities within the statements of income. Other marketable securities are classified as available‑for‑sale and are carried at estimated fair value. Realized gains (losses) on investment securities available‑for‑sale are included in net gains (losses) on investment securities and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive income. Gains (losses) on sales of investment securities are determined using the specific identification method on the trade date. The amortization of premiums and accretion of discounts are recognized in interest income using methods approximating the interest method over the period to maturity. Declines in the estimated fair value of individual available‑for‑sale investment securities below their cost that are other than temporary, result in write‑downs of the individual investment securities to their estimated fair value. The Company monitors the investment security portfolio for impairment on an individual security basis and has a process in place to identify investment securities that could potentially have a credit impairment that is other than temporary. This process involves analyzing the length of time and the extent to which the estimated fair value has been less than the amortized cost basis, the market liquidity for the security, the financial condition and near‑term prospects of the issuer, expected cash flows, and the Company’s intent and ability to hold the investment for a period of time sufficient to recover the temporary loss. The ability to hold is determined by whether it is more likely than not that the Company will be required to sell the security before its anticipated recovery. A decline in value due to a credit event that is considered other than temporary is recorded as a loss in noninterest income. Equity investments for which readily determinable values are unavailable are carried at cost in other assets on the consolidated balance sheet. Nonmarketable Equity Securities Nonmarketable equity securities include the Bank’s required investments in the stock of the Federal Home Loan Bank of Des Moines, or the FHLB and the Federal Reserve Bank, or the FRB. The Bank is a member of the FHLB as well as its regional FRB. Members are required to own a certain amount of stock based of the level of borrowing and other factors, and may invest in additional amounts. FHLB stock and FRB stock are carried at cost, classified as other assets, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.
Loans Held for Sale/Branch Sale	Loans Held for Sale/Branch Sale Loans originated and intended for sale in the secondary market or loans transferred to held for branch sale are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses are recognized through a valuation allowance by charges to income. Gains (losses) on loan sales are recorded in mortgage banking revenue on the consolidated statements of income. Refer to Note 29 (Branch Sale) for additional details on loans held for branch sale.
Loans	Loans Loans are stated at the amount of unpaid principal, reduced by an allowance for loan losses. Loans that management has the intent and ability to hold for the foreseeable future, until maturity or pay‑off, generally are reported at their outstanding unpaid principal balances adjusted for charge‑offs, and the allowance for loan losses. Loan fees received that are associated with originating or acquiring certain loans are deferred, net of costs, and amortized over the life of the loan as a yield adjustment to interest income. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well‑secured and in process of collection. Consumer loans are typically charged‑off no later than 120 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged‑off at an earlier date if collection of principal or interest in considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged‑off is reversed against interest income. The interest on these loans is accounted for on the cash‑basis or cost‑recovery method until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses (allowance) is an estimate of loan losses inherent in the Company’s loan portfolio. The allowance is established through a provision for loan losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after loan losses and loan growth. Loan losses are charged‑off against the allowance when the Company determines the loan balance to be uncollectible. Cash received on previously charged‑off amounts is recorded as a recovery to the allowance. The allowance consists of three primary components, general reserves, specific reserves related to impaired loans, and unallocated reserves. The general component covers non‑impaired loans and is based on historical losses adjusted for current qualitative factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent five years. This actual loss experience is adjusted for economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge‑offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. These factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans determined to be impaired are individually evaluated for impairment. When a loan is impaired, the Company measures impairment based on the present value of expected future cash flows discounted at the original contractual interest rate, except that as a practical expedient, it may measure impairment based on an observable market price for the estimated fair value of the collateral if collateral dependent. A loan is collateral dependent if the repayment is expected to be provided solely by the underlying collateral. Allowance allocations other than general and specific are included in the unallocated portion. While allocations are made for loans based upon historical loss analysis, the unallocated portion is designed to cover the uncertainty of how current economic conditions and other uncertainties may impact the existing loan portfolio. Factors to consider include national and state economic conditions such as unemployment or real estate lending values. The unallocated reserve addresses inherent probable losses not included elsewhere in the allowance for loan losses. The Company maintains a separate general valuation allowance for each portfolio segment. These portfolio segments include commercial and industrial, real estate construction, commercial real estate, residential real estate first mortgage, residential real estate junior liens, and other revolving and installment with risk characteristics described as follows: Commercial and Industrial: Commercial and industrial loans consist of all commercial and industrial loans as well as agricultural production and other commercial loans. Commercial and industrial loans generally possess a lower inherent risk of loss than real estate portfolio segments as these loans are generally underwritten based on the cash flows of the operating business. Repayment is provided by business cash flows and is influenced by economic trends such as unemployment rates and other key economic factors. Agricultural loans generally possess a lower inherent risk of loss than real estate portfolio segments for the same reasons as commercial and industrial loans. However, they generally possess greater volatility of risk due to commodity pricing, which can lead to cash flow and collateral shortfalls. Real Estate Construction: Real estate construction loans generally possess a higher inherent risk of loss than commercial and retail real estate portfolio segments. Significant inherent risks are project completion, cost overruns, and adherence to construction schedule. Additionally, real estate values could significantly impact the credit quality of these loans. Commercial Real Estate: Commercial real estate loans generally possess a higher inherent risk of loss than other real estate portfolio segments, except real estate construction and agricultural land loans. Adverse economic developments such as high vacancy rates or decreasing real estate values may impact commercial real estate credit quality. Agricultural real estate loans are primarily comprised of loans for the purchase of farmland. Risks associated with farmland include volatility of real estate values driven by commodity prices, among other economic trends. Residential real estate first and junior liens: The degree of risk in residential mortgage lending depends primarily on the loan amount in relation to collateral value, the interest rate, and the borrower’s ability to repay in an orderly fashion. These loans generally possess a lower inherent risk of loss than commercial real estate portfolio segments. Credit quality is impacted by unemployment rates and other key economic indicators. Other Revolving and Installment: The consumer loan portfolio is primarily comprised of homogenous loans. Credit quality is impacted by unemployment rates and other key economic indicators. Although management believes the allowance to be adequate, actual losses may vary from its estimates. On a quarterly basis, management reviews the adequacy of the allowance, including consideration of the relevant risks in the portfolio, current economic conditions, and other factors. If the board of directors and management determine that changes are warranted based on those reviews, the allowance is adjusted.
Off-Balance Sheet Credit Related Financial Instruments	Off‑Balance Sheet Credit Related Financial Instruments In the ordinary course of business, the Company enters into commitments to extend credit, including commitments under credit arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. The Company establishes a reserve for unfunded commitments using historical loss data and utilization assumptions. This reserve is located under accrued expenses and other liabilities on the Consolidated Balance Sheets.
Land, Premises and Equipment, Net	Land, Premises and Equipment, Net Land is carried at cost. Other premises and equipment are carried at cost net of accumulated depreciation. Depreciation is computed on a straight‑line method based principally on the estimated useful lives of the assets. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Gains (losses) on dispositions are included in current operations.
Bank-Owned Life Insurance	Bank‑Owned Life Insurance The Company has purchased life insurance policies on certain key executives. Bank‑owned life insurance is recorded at its cash surrender value, or the amount that can be realized, if lower.
Goodwill and Other Intangibles, Net	Goodwill and Other Intangibles, Net Goodwill resulting from acquisitions is not amortized, but is tested for impairment annually. As part of its testing, the Company first assesses the qualitative factors to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If the Company determines the estimated fair value of a reporting unit is less than its carrying amount using these qualitative factors, the Company then compares the estimated fair value of the goodwill with its carrying amount, and then measures impairment loss by comparing the estimated fair value of goodwill with the carrying amount of that goodwill. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes developing cash flow projections, selecting appropriate discount rates, identifying relevant market comparables, incorporating general economic and market conditions, and selecting an appropriate control premium. At December 31, 2019, the Company believes it does not have any indications of potential impairment based on the estimated fair value of the reporting units. Intangible assets determined to have definite lives are amortized over the remaining useful lives. Intangible and other long‑lived assets are reviewed for impairment whenever events occur or circumstances indicate that the carrying amount may not be recoverable.
Servicing Rights	Servicing Rights Servicing rights are recognized as separate assets when rights are acquired through the sale of loans. Servicing rights are initially recorded at estimated fair value based on assumptions provided by a third‑party valuation service. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as servicing cost per loan, the discount rate, the escrow float rate, an inflation rate, ancillary income, prepayment speeds, and default rates and losses. Loan servicing income is recorded on the accrual basis and includes servicing fees from investors and certain charges collected from borrowers, such as late payment fees, and is net of estimated fair value adjustments to capitalized mortgage servicing rights. Capitalized servicing rights are amortized into noninterest income in proportion to, and over the period of, the estimated future servicing income of the underlying loans. Servicing rights are evaluated for impairment based upon the estimated fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that estimated fair value is less than the capitalized amount for the tranche. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan, and are recorded as income when earned. The amortization of servicing rights is netted against loan servicing fee income.
Impairment of Long-Lived Assets	Impairment of Long‑Lived Assets The Company tests long‑lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to the future undiscounted net cash flows expected to be generated by the asset. In the event such an asset is considered impaired, the impairment to be recognized is measured by the amount by which the carrying value of the asset exceeds the estimated fair value of the asset. Assets to be disposed of are reported at the lower of the carrying value of estimated fair value less estimated costs to sell.
Foreclosed Assets	Foreclosed Assets Assets acquired through loan foreclosure are included in other assets and are initially recorded at estimated fair value less estimated selling costs. The estimated fair value of foreclosed assets is evaluated regularly and any decreases in value along with holding costs, such as taxes, insurance and utilities, are reported in noninterest expense.
Transfers of Financial Assets and Participating Interests	Transfers of Financial Assets and Participating Interests Transfers of financial assets are accounted for as sales when control over assets has been surrendered or in the case of loan participation, a portion of the asset has been surrendered and meets the definition of a “participating interest.” Control over transferred assets is deemed to be surrendered when 1) the assets have been isolated from the Company, 2) the transferee obtains the rights to pledge or exchange the transferred assets, and 3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Should the transfer not meet these three criteria, the transaction is treated as a secured financing. Loans serviced for others are not included in the accompanying consolidated balance sheets. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and collection and foreclosure processing.
Derivatives and Hedging Activities	Derivatives and Hedging Activities In the ordinary course of business, the Company enters into derivative transactions to manage various risks and to accommodate the business requirements of its clients. Derivative instruments are reported in other assets or other liabilities at estimated fair value. Changes in a derivative’s estimated fair value are recognized currently in earnings unless specific hedge accounting criteria are met.
Deposits Held for Sale	Deposits Held for Sale Deposits held for sale are stated at the lower of cost or fair value on an aggregate basis. Refer to Note 29 (Branch Sale) for additional details on deposits held for sale.
Noninterest Income	Noninterest Income Specific guidelines are established for recognition of certain noninterest income components related to the Company’s consolidated financial statements. In accordance with Topic 606, revenues are recognized when control of promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Topic 606, the Company performs the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five‑step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services that are promised within each contract and identifies those that contain performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. The material groups of noninterest income that this methodology is applied to are defined as follows: Retirement and benefit services: Retirement and benefit services income is primarily comprised of fees earned from the administration of retirement plans, record‑keeping, compliance services, payroll processing, health savings accounts, and flexible benefit plans. Fees are earned based on a combination of the market value of assets under administration and transaction based fees for services provided. Fees that are determined based on the market value of the assets under administration are generally billed monthly or quarterly in arrears and recognized monthly as the Company’s performance obligations are met. Other transaction based fees are recognized monthly as the performance obligation is satisfied. Wealth management: Wealth management income is earned from a variety of sources including trust administration and other related fiduciary services, custody, investment management and advisory services, and brokerage. Fees are based on the market value of the assets under management and are generally billed monthly in arrears and recognized monthly as the Company’s performance obligations are met. Commissions on transactions are recognized on a trade‑date basis as the performance obligation is satisfied at the point in time in which the trade is processed. Other related services are based on a fixed fee schedule and the revenue is recognized when the services are rendered, which is when the Company has satisfied its performance obligation. Service charges on deposit accounts: Service charges on deposit accounts primarily consist of account analysis fees, monthly maintenance fees, overdraft fees, and other deposit account related fees. Overdraft fees and certain service charges are fixed and the performance obligation is typically satisfied at the time of the related transaction. The consideration for analysis fees and monthly maintenance fees are variable as the fee can be reduced if the customer meets certain qualifying metrics. The Company’s performance obligations are satisfied at the time of the transaction or over the course of a month. Other noninterest income: Other noninterest income components include debit card interchange fees, bank‑owned life insurance income and miscellaneous transactional fees. Income earned from these revenue streams is generally recognized concurrently with the satisfaction of the performance obligation.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred.
Income Taxes	Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance would be recognized if it is “more likely than not” that the deferred tax asset would not be realized. These calculations are based on many complex factors including estimates of the timing of reversals of temporary differences, the interpretation of federal and state income tax laws, and a determination of the differences between the tax and the financial reporting basis of assets and liabilities. Actual results could differ significantly from the estimates and interpretations used in determining the current and deferred income tax liabilities. The Company follows standards related to Accounting for Uncertainty in Income Taxes. These rules establish a higher standard for tax benefits to meet before they can be recognized in a Company’s consolidated financial statements. The Company can recognize in financial statements the impact of a tax position taken, or expected to be taken, if it is more likely than not that the position will be sustained on an audit based on the technical merit of the position. See Note 20 (Income Taxes) for additional disclosures. The Company recognizes both interest and penalties as components of other operating expenses. The amount of the uncertain tax position was not determined to be material. It is not expected that the unrecognized tax benefit will be material within the next 12 months. The Company did not recognize any interest or penalties in 2019, 2018, or 2017. The Company files consolidated federal and state income tax returns. The Company is no longer subject to U.S. federal or state tax examinations by tax authorities for years before 2016.
Comprehensive Income	Comprehensive Income Recognized revenue, expenses, gains, and losses are included in net income. Certain changes in assets and liabilities, such as unrealized gains (losses) on investment securities available‑for‑sale, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income.
Stock Compensation Plans	Stock Compensation Plans Stock compensation accounting guidance requires that the compensation cost relating to share‑based payment transactions be recognized in financial statements. The cost will be measured based on the grant date estimated fair value of the equity or liability instruments issued. The grant date estimated fair value is determined using the 20 day weighted‑average closing price of the Company’s common stock. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employee’s service period, generally defined as the vesting period. For awards with graded‑vesting, compensation cost is recognized on a straight‑line basis over the requisite service period for the entire award.
Earnings per Share	Earnings per Share Earnings per share are calculated utilizing the two-class method. Basic earnings per share is calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per share are calculated by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted-average number of share adjusted for the dilutive effect of common stock awards.
New Accounting Pronouncements	Adopted Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases.” Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases): 1) a lease liability, which is the present value of a lessee’s obligation to make lease payments, and 2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. Leveraged leases have been eliminated, although lessors can continue to account for existing leveraged leases using the current accounting guidance. Other limited changes were made to align lessor accounting with the lessee accounting model and the new revenue recognition standard. All entities will classify leases to determine how to recognize lease-related revenue and expense. Quantitative and qualitative disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The intention is to require enough information to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities. ASU No. 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. All entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. As the Company elected the transition option provided in ASU No. 2018-11, the modified retrospective approach was applied on January 1, 2019. The Company also elected certain relief options offered in ASU 2016-02 including the package of practical expedients, the option not to separate lease and non-lease components and instead to account for them as a single lease component, and the option not to recognize right-of-use assets and lease liabilities that arise from short-term leases (i.e., leases with terms of twelve months or less). The Company did not elect the hindsight practical expedient, which allows entities to use hindsight when determining lease term and impairment of right-of-use assets. The Company has several lease agreements, such as branch locations, which are considered operating leases, and therefore, were not previously recognized on the Company’s consolidated balance sheets. The new guidance requires these lease agreements to be recognized on the consolidated balance sheets as a right-of-use asset and a corresponding lease liability. The new guidance did not have a material impact on the consolidated statements of income or the consolidated statements of cash flows. See Note 9 (Leases) for more information. In March 2017, the FASB issued ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities. This ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Currently, entities generally amortize the premium as an adjustment of yield over the contractual life of the security. ASU 2017-08 does not change the accounting for purchased callable debt securities held at a discount as the discount will continue to be accreted to maturity. ASU 2017-08 is effective for public business entities for the interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which ASU 2017-08 is adopted. The Company adopted this standard as of January 1, 2019, and has evaluated the provisions of ASU 2017-08 and determined there is no impact on its consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” This ASU’s objectives are to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities; and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. ASU No. 2017-12 is effective for interim and annual reporting periods beginning after December 15, 2018. The Company currently does not designate any derivative financial instruments as formal hedging relationships, and therefore, does not currently utilize hedge accounting. As such, ASU No. 2017-12 did not impact the Company’s consolidated financial statements. In June 2018, the FASB issued ASU No. 2018‑07, Compensation (Topic 718): Improvements to Nonemployee Share‑Based Payment Accounting. This ASU has been issued as part of a simplification initiative which will expand the scope of Topic 718 to include share‑based payment transactions for the acquiring of goods and services from non‑employees and expands the scope through the amendments to address and improve aspects of the accounting for non‑employee share‑based payment transactions. The amendments will be effective for public business entities for interim and annual reporting periods beginning after December 15, 2018. The Company adopted ASU 2018‑07 effective January 1, 2019, and has evaluated the provisions of ASU 2018‑07 and determined there was no significant impact on its consolidated financial statements. Pronouncements Not Yet Effective In June 2016, the FASB issued ASU No. 2016‑13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU requires a new impairment model known as the current expected credit loss, or CECL which significantly changes the way impairment of financial instruments is recognized by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of financial instruments. The main provisions of ASU 2016‑13 include (1) replacing the “incurred cost” approach under GAAP with an “expected loss” model for instruments measured at amortized cost, (2) requiring entities to record an allowance for credit losses related to available‑for‑sale debt securities rather than a direct write‑down of the carrying amount of the investments, as is required by the other‑than‑temporary impairment model under current GAAP, and (3) a simplified accounting model for purchase credit‑impaired debt securities and loans. On July 17, 2019, the FASB voted to issue a proposal for public comment that would potentially result in the postponement of the required implementation date for ASU 2016-13, and on October 16, 2019, the FASB approved delaying the implementation of this ASU for private companies and smaller reporting companies until 2023. As an emerging growth company, the Company can take advantage of this delay. Management will continue to monitor any new developments regarding this possible delay. The Company is currently evaluating the potential impact of ASU 2016‑13 on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017‑04, Simplifying the Test for Goodwill Impairment. This ASU removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the amended guidance, a goodwill impairment charge will now be recognized for the amount by which the carrying value of a reporting unit exceeds its estimated fair value, not to exceed the carrying amount of goodwill. For public business entities that are US Securities and Exchange Commission filers, ASU 2017‑04 is effective for interim and annual reporting periods beginning after December 15, 2019. For all other public business entities ASU 2017‑04 is effective for interim and annual reporting periods beginning after December 15, 2020. As an emerging growth company, ASU 2017‑04 is effective for interim and annual reporting periods beginning after December 15, 2021, although early adoption is permitted. The Company has evaluated impact of this new guidance and determined that it will not have a significant impact of the consolidated financial statements. In August 2018, the FASB issued ASU No. 2018‑13, Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. This ASU eliminates, adds, and modifies certain disclosure requirements for estimated fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfer between Level 1 and Level 2 of the estimated fair value hierarchy, but will be required to disclose the range and weighted-average used to develop significant unobservable inputs for Level 3 estimated fair value measurements. ASU 2018‑13 is effective for all entities for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. Entities are also allowed to elect for early adoption of the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. The revised disclosure requirements will not have a material impact on the Company’s consolidated financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which affects a variety of topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. This update is not expected to have a significant impact on the Company’s consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, Targeted Transition Relief to provide entities with an option to irrevocably elect the fair value option applied on an instrument-by-instrument basis for eligible instruments. As an emerging growth company, these ASUs are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. This update is not expected to have a significant impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for the areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2020. Early adoption of the amendments is permitted, including adoption in any interim period for which financial statements have not yet been issued. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective, or prospective basis. The Company is currently reviewing the provisions of this new pronouncement, but does not expect adoption of this guidance to have a material impact on the Company’s consolidated financial statements.

Investment Securities (Tables)

Investment Securities (Tables)	12 Months Ended
	Dec. 31, 2019
Investment Securities
Schedule of amortized cost of investment securities to estimated fair values	December 31, 2019 Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value U.S. Treasury and agencies $ 21,246 $ 9 $ (15) $ 21,240 Obligations of state and political agencies 68,162 647 (161) 68,648 Mortgage backed securities Residential agency 180,411 2,258 (131) 182,538 Commercial 30,752 101 (168) 30,685 Asset backed securities 139 5 — 144 Corporate bonds 7,054 41 — 7,095 Total available-for-sale investment securities $ 307,764 $ 3,061 $ (475) $ 310,350 December 31, 2018 Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value U.S. Treasury and agencies $ 19,364 $ — $ (222) $ 19,142 Obligations of state and political agencies 67,662 171 (1,446) 66,387 Mortgage backed securities Residential agency 129,906 210 (3,118) 126,998 Commercial 29,050 20 (303) 28,767 Asset backed securities 398 5 (4) 399 Corporate bonds 8,602 — (121) 8,481 Total available-for-sale investment securities $ 254,982 $ 406 $ (5,214) $ 250,174
Schedule of contractual maturity of amortized cost and estimated fair value	Amortized Fair (dollars in thousands) Cost Value Due within one year or less $ 14,799 $ 14,807 Due after one year through five years 25,193 25,315 Due after five years through ten years 83,987 84,965 Due after 10 years 183,785 185,263 Total available-for-sale investment securities $ 307,764 $ 310,350
Schedule of proceeds from the sale of available for sale securities	Year ended December 31, (dollars in thousands) 2019 2018 2017 Proceeds $ 32,565 $ 6,488 $ — Realized gains 357 144 — Realized losses (22) (15) —
Schedule of investment securities with gross unrealized losses	December 31, 2019 Less than 12 Months Over 12 Months Total Unrealized Fair Unrealized Fair Unrealized Fair (dollars in thousands) Losses Value Losses Value Losses Value U.S. Treasury and agencies $ (5) $ 1,740 $ (10) $ 9,990 $ (15) $ 11,730 Obligations of state and political agencies (140) 11,959 (21) 5,798 (161) 17,757 Mortgage backed securities Residential agency (52) 17,131 (79) 14,036 (131) 31,167 Commercial (116) 15,235 (52) 6,195 (168) 21,430 Asset backed securities — 2 — — — 2 Corporate bonds — — — — — — Total available-for-sale investment securities $ (313) $ 46,067 $ (162) $ 36,019 $ (475) $ 82,086 December 31, 2018 Less than 12 Months Over 12 Months Total Unrealized Fair Unrealized Fair Unrealized Fair (dollars in thousands) Losses Value Losses Value Losses Value U.S. Treasury and agencies $ (8) $ 5,288 $ (214) $ 11,598 $ (222) $ 16,886 Obligations of state and political agencies — 389 (1,446) 55,770 (1,446) 56,159 Mortgage backed securities Residential agency (44) 7,352 (3,074) 112,293 (3,118) 119,645 Commercial (39) 7,844 (264) 9,741 (303) 17,585 Asset backed securities — 2 (4) 155 (4) 157 Corporate bonds — — (121) 8,481 (121) 8,481 Total available-for-sale investment securities $ (91) $ 20,875 $ (5,123) $ 198,038 $ (5,214) $ 218,913
Schedule of federal home loan bank	December 31, December 31, (dollars in thousands) 2019 2018 Federal Reserve $ 2,675 $ 2,675 FHLB 3,080 6,875

Loans and Allowance for Loan _2

Loans and Allowance for Loan Losses (Tables)	12 Months Ended
	Dec. 31, 2019
Loans and Allowance for Loan Losses
Schedule of total loans outstanding by portfolio segment	December 31, December 31, (dollars in thousands) 2019 2018 Commercial Commercial and industrial $ 479,144 $ 510,706 Real estate construction 26,378 18,965 Commercial real estate 494,703 439,963 Total commercial 1,000,225 969,634 Consumer Residential real estate first mortgage 457,155 448,143 Residential real estate junior lien 177,373 188,855 Other revolving and installment 86,526 95,218 Total consumer 721,054 732,216 Total loans $ 1,721,279 $ 1,701,850
Schedule of past due aging analysis of the loan portfolio	December 31, 2019 90 Days Accruing 30 - 89 Days or More Total (dollars in thousands) Current Past Due Past Due Nonaccrual Loans Commercial Commercial and industrial $ 473,900 $ 382 $ — $ 4,862 $ 479,144 Real estate construction 26,251 127 — — 26,378 Commercial real estate 492,707 556 — 1,440 494,703 Total commercial 992,858 1,065 — 6,302 1,000,225 Consumer Residential real estate first mortgage 455,244 666 448 797 457,155 Residential real estate junior lien 176,915 184 — 274 177,373 Other revolving and installment 86,172 348 — 6 86,526 Total consumer 718,331 1,198 448 1,077 721,054 Total loans $ 1,711,189 $ 2,263 $ 448 $ 7,379 $ 1,721,279 December 31, 2018 90 Days Accruing 30 - 89 Days or More Total (dollars in thousands) Current Past Due Past Due Nonaccrual Loans Commercial Commercial and industrial $ 504,313 $ 2,815 $ — $ 3,578 $ 510,706 Real estate construction 18,965 — — — 18,965 Commercial real estate 438,446 — — 1,517 439,963 Total commercial 961,724 2,815 — 5,095 969,634 Consumer Residential real estate first mortgage 444,470 2,411 — 1,262 448,143 Residential real estate junior lien 187,502 769 — 584 188,855 Other revolving and installment 94,615 581 — 22 95,218 Total consumer 726,587 3,761 — 1,868 732,216 Total loans $ 1,688,311 $ 6,576 $ — $ 6,963 $ 1,701,850
Schedule of loans outstanding, by portfolio segment and risk category	December 31, 2019 Criticized Special (dollars in thousands) Pass Mention Substandard Doubtful Total Commercial Commercial and industrial $ 448,306 $ 9,585 $ 21,253 $ — $ 479,144 Real estate construction 25,119 282 977 — 26,378 Commercial real estate 462,294 2,359 30,050 — 494,703 Total commercial $ 935,719 $ 12,226 $ 52,280 $ — $ 1,000,225 Consumer Residential real estate first mortgage 456,358 — 797 — 457,155 Residential real estate junior lien 176,122 — 1,251 — 177,373 Other revolving and installment 86,520 — 6 — 86,526 Total consumer 719,000 — 2,054 — 721,054 Total loans $ 1,654,719 $ 12,226 $ 54,334 $ — $ 1,721,279 December 31, 2018 Criticized Special (dollars in thousands) Pass Mention Substandard Doubtful Total Commercial Commercial and industrial $ 459,565 $ 12,055 $ 37,523 $ 1,563 $ 510,706 Real estate construction 17,910 — 1,055 — 18,965 Commercial real estate 407,178 6,304 26,481 — 439,963 Total commercial $ 884,653 $ 18,359 $ 65,059 $ 1,563 $ 969,634 Consumer Residential real estate first mortgage 448,124 — 19 — 448,143 Residential real estate junior lien 186,370 — 2,485 — 188,855 Other revolving and installment 95,218 — — — 95,218 Total consumer 729,712 — 2,504 — 732,216 Total loans $ 1,614,365 $ 18,359 $ 67,563 $ 1,563 $ 1,701,850
Summary of changes in allowances	Year ended December 31, 2019 Beginning Provision for Loan Loan Ending (dollars in thousands) Balance Loan Losses Charge-offs Recoveries Balance Commercial Commercial and industrial $ 12,127 $ 5,213 $ (6,540) $ 1,470 $ 12,270 Real estate construction 250 51 (1) 3 303 Commercial real estate 6,279 (1,467) — 150 4,962 Total commercial 18,656 3,797 (6,541) 1,623 17,535 Consumer Residential real estate first mortgage 1,156 292 — — 1,448 Residential real estate junior lien 805 1,825 (465) 232 2,397 Other revolving and installment 380 383 (572) 161 352 Total consumer 2,341 2,500 (1,037) 393 4,197 Unallocated 1,177 1,015 — — 2,192 Total $ 22,174 $ 7,312 $ (7,578) $ 2,016 $ 23,924 Year ended December 31, 2018 Beginning Provision for Loan Loan Ending (dollars in thousands) Balance Loan Losses Charge-offs Recoveries Balance Commercial Commercial and industrial $ 7,589 $ 6,911 $ (3,123) $ 750 $ 12,127 Real estate construction 343 (35) (60) 2 250 Commercial real estate 4,909 1,889 (600) 81 6,279 Total commercial 12,841 8,765 (3,783) 833 18,656 Consumer Residential real estate first mortgage 1,411 (226) (29) — 1,156 Residential real estate junior lien 902 (171) (133) 207 805 Other revolving and installment 499 (24) (308) 213 380 Total consumer 2,812 (421) (470) 420 2,341 Unallocated 911 266 — — 1,177 Total $ 16,564 $ 8,610 $ (4,253) $ 1,253 $ 22,174 Year ended December 31, 2017 Beginning Provision for Loan Loan Ending (dollars in thousands) Balance Loan Losses Charge-offs Recoveries Balance Commercial Commercial and industrial $ 6,702 $ 3,244 $ (3,287) $ 930 $ 7,589 Real estate construction 480 (416) — 279 343 Commercial real estate 4,484 352 — 73 4,909 Total commercial 11,666 3,180 (3,287) 1,282 12,841 Consumer Residential real estate first mortgage 1,126 182 — 103 1,411 Residential real estate junior lien 907 247 (1,124) 872 902 Other revolving and installment 400 276 (429) 252 499 Total consumer 2,433 705 (1,553) 1,227 2,812 Unallocated 1,516 (605) — — 911 Total $ 15,615 $ 3,280 $ (4,840) $ 2,509 $ 16,564
Schedule of loans distributed by portfolio segment and impairment methodology	December 31, 2019 Recorded Investment Allowance for Loan Losses Individually Collectively Individually Collectively (dollars in thousands) Evaluated Evaluated Total Evaluated Evaluated Unallocated Total Commercial Commercial and industrial $ 976 $ 478,168 $ 479,144 $ 189 $ 12,081 $ — $ 12,270 Real estate construction — 26,378 26,378 — 303 — 303 Commercial real estate 5,925 488,778 494,703 2,946 2,016 — 4,962 Total commercial 6,901 993,324 1,000,225 3,135 14,400 — 17,535 Consumer Residential real estate first mortgage 782 456,373 457,155 — 1,448 — 1,448 Residential real estate junior lien 266 177,107 177,373 — 2,397 — 2,397 Other revolving and installment 5 86,521 86,526 3 349 — 352 Total consumer 1,053 720,001 721,054 3 4,194 — 4,197 Total loans $ 7,954 $ 1,713,325 $ 1,721,279 $ 3,138 $ 18,594 $ 2,192 $ 23,924 December 31, 2018 Recorded Investment Allowance for Loan Losses Individually Collectively Individually Collectively (dollars in thousands) Evaluated Evaluated Total Evaluated Evaluated Unallocated Total Commercial Commercial and industrial $ 3,945 $ 506,761 $ 510,706 $ 2,059 $ 10,068 $ — $ 12,127 Real estate construction — 18,965 18,965 — 250 — 250 Commercial real estate 1,684 438,279 439,963 455 5,824 — 6,279 Total commercial 5,629 964,005 969,634 2,514 16,142 — 18,656 Consumer Residential real estate first mortgage 352 447,791 448,143 — 1,156 — 1,156 Residential real estate junior lien 559 188,296 188,855 4 801 — 805 Other revolving and installment 20 95,198 95,218 20 360 — 380 Total consumer 931 731,285 732,216 24 2,317 — 2,341 Total loans $ 6,560 $ 1,695,290 $ 1,701,850 $ 2,538 $ 18,459 $ 1,177 $ 22,174
Schedule of impaired loans	December 31, 2019 December 31, 2018 Recorded Unpaid Related Recorded Unpaid Related (dollars in thousands) Investment Principal Allowance Investment Principal Allowance Impaired loans with a valuation allowance Commercial and industrial $ 639 $ 727 $ 189 $ 2,660 $ 2,752 $ 2,059 Commercial real estate 5,718 5,823 2,946 1,499 1,517 455 Residential real estate first mortgage — — — — — — Residential real estate junior lien — — — 4 4 4 Other revolving and installment 5 6 3 19 20 20 Total impaired loans with a valuation allowance 6,362 6,556 3,138 4,182 4,293 2,538 Impaired loans without a valuation allowance Commercial and industrial 337 1,110 — 1,285 1,422 — Commercial real estate 207 236 — 185 218 — Residential real estate first mortgage 782 797 — 352 504 — Residential real estate junior lien 266 372 — 555 697 — Other revolving and installment — — — 1 2 — Total impaired loans without a valuation allowance 1,592 2,515 — 2,378 2,843 — Total impaired loans Commercial and industrial 976 1,837 189 3,945 4,174 2,059 Commercial real estate 5,925 6,059 2,946 1,684 1,735 455 Residential real estate first mortgage 782 797 — 352 504 — Residential real estate junior lien 266 372 — 559 701 4 Other revolving and installment 5 6 3 20 22 20 Total impaired loans $ 7,954 $ 9,071 $ 3,138 $ 6,560 $ 7,136 $ 2,538 The table below presents the average recorded investment in impaired loans and interest income for the three years ending December 31, 2019, 2018, and 2017: Year Ended December 31, 2019 2018 2017 Average Average Average Recorded Interest Recorded Interest Recorded Interest (dollars in thousands) Investment Income Investment Income Investment Income Impaired loans with a valuation allowance Commercial and industrial $ 839 $ 16 $ 3,163 $ — $ 2,605 $ 148 Real estate construction — — — — — — Commercial real estate 5,891 — 1,558 — 234 9 Residential real estate first mortgage — — — — — — Residential real estate junior lien — — 4 — 317 18 Other revolving and installment 20 — 28 — 79 6 Total impaired loans with a valuation allowance 6,750 16 4,753 — 3,235 181 Impaired loans without a valuation allowance Commercial and industrial 2,434 30 1,595 35 1,676 89 Real estate construction — — — — 65 3 Commercial real estate 212 8 223 9 — — Residential real estate first mortgage 230 — 533 — 620 37 Residential real estate junior lien 338 4 718 6 1,963 123 Other revolving and installment 3 — 3 — 10 — Total impaired loans without a valuation allowance 3,217 42 3,072 50 4,334 252 Total impaired loans Commercial and industrial 3,273 46 4,758 35 4,281 237 Real estate construction 65 3 Commercial real estate 6,103 8 1,781 9 234 9 Residential real estate first mortgage 230 — 533 — 620 37 Residential real estate junior lien 338 4 722 6 2,280 141 Other revolving and installment 23 — 31 — 89 6 Total impaired loans $ 9,967 $ 58 $ 7,825 $ 50 $ 7,569 $ 433

Land, Premises and Equipment,_2

Land, Premises and Equipment, Net (Tables)	12 Months Ended
	Dec. 31, 2019
Land, Premises and Equipment, Net
Schedule of Components of land, premises and equipment, net	December 31, December 31, (dollars in thousands) 2019 2018 Land $ 4,542 $ 4,663 Buildings and improvements 25,078 25,902 Finance lease 2,657 2,657 Furniture, fixtures, and equipment 31,859 29,767 64,136 62,989 Less accumulated depreciation (43,507) (41,246) Total $ 20,629 $ 21,743

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2019
Goodwill and Other Intangible Assets
Schedule of goodwill by segment	The following table summarizes the carrying amounts of goodwill, by segment, as of December 31, 2019 and 2018: December 31, December 31, (dollars in thousands) 2019 2018 Banking $ 20,131 $ 20,131 Retirement and benefit services 7,198 7,198 Total goodwill $ 27,329 $ 27,329
Schedule of identifiable intangible assets	December 31, 2019 December 31, 2018 (dollars in thousands) Gross Accumulated Total Gross Accumulated Total Identifiable customer intangibles $ 31,857 $ (14,287) $ 17,570 $ 55,744 $ (34,972) $ 20,772 Core deposit intangible assets 4,993 (4,172) 821 7,216 (5,515) 1,701 Total intangible assets $ 36,850 $ (18,459) $ 18,391 $ 62,960 $ (40,487) $ 22,473
Schedule of amortization expense	(dollars in thousands) Amount 2020 $ 3,961 2021 3,266 2022 3,202 2023 3,202 2024 2,949 Thereafter 1,811 Total $ 18,391

Loan Servicing (Tables)

Loan Servicing (Tables)	12 Months Ended
	Dec. 31, 2019
Loan Servicing
Summary of activity related to loan servicing	Year ended December 31, (dollars in thousands) 2019 2018 2017 Balance, beginning of period $ 4,623 $ 4,686 $ 4,777 Additions 342 534 745 Amortization (987) (669) (822) (Impairment)/Recovery (133) 72 (14) Balance, end of period $ 3,845 $ 4,623 $ 4,686
Summary of key economic assumptions	December 31, December 31, (dollars in thousands) 2019 2018 Fair value of servicing rights $ 3,845 $ 4,623 Weighted-average remaining term, years 20.1 20.8 Prepayment speeds 11.8 % 7.8 % Discount rate 9.4 % 10.5 %

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2019
Leases
Schedule of right-of-use assets and lease liabilities	December 31, (dollars in thousands) 2019 Lease Right-of-Use Assets Classification Operating lease right-of-use assets Operating lease right-of-use assets $ 8,343 Finance lease right-of-use assets Land, premises and equipment, net 318 Total lease right-of-use assets $ 8,661 Lease Liabilities Operating lease liabilities Operating lease liabilities $ 8,864 Finance lease liabilities Long-term debt 640 Total lease liabilities $ 9,504
Schedule of weighted average remaining lease term and average discount rate	December 31, 2019 Weighted-average remaining lease term, years Operating leases 6.2 Finance leases 2.8 Weighted-average discount rate Operating leases 3.1 % Finance leases 7.8 %
Schedule of lease costs and other lease information	Year ended (dollars in thousands) December 31, 2019 Lease costs Operating lease cost $ 2,378 Variable lease cost 819 Short-term lease cost 535 Finance lease cost Interest on lease liabilities 58 Amortization of right-of-use assets 116 Sublease income (270) Net lease cost $ 3,636 Other information Cash paid for amounts included in the measurement of lease liabilities operating cash flows from operating leases 2,376 Right-of-use assets obtained in exchange for new operating lease liabilities — Right-of-use assets obtained in exchange for new finance lease liabilities —
Schedule of future minimum payments for finance leases	Future minimum payments for finance and operating leases with initial or remaining terms of one year or more as of December 31, 2019 are as follows: December 31, 2019 Finance Operating (dollars in thousands) Leases Leases 2020 $ 251 $ 2,197 2021 251 1,560 2022 209 1,563 2023 — 1,488 2024 — 898 Thereafter — 2,272 Total future minimum lease payments $ 711 $ 9,978 Amounts representing interest (71) (1,114) Total operating lease liabilities $ 640 $ 8,864
Schedule of future minimum payments for operating leases	December 31, 2019 Finance Operating (dollars in thousands) Leases Leases 2020 $ 251 $ 2,197 2021 251 1,560 2022 209 1,563 2023 — 1,488 2024 — 898 Thereafter — 2,272 Total future minimum lease payments $ 711 $ 9,978 Amounts representing interest (71) (1,114) Total operating lease liabilities $ 640 $ 8,864

Other Assets (Tables)

Other Assets (Tables)	12 Months Ended
	Dec. 31, 2019
Other Assets
Schedule of other assets	December 31, December 31, (dollars in thousands) 2019 2018 Federal Reserve Bank stock $ 2,675 $ 2,675 Foreclosed assets 8 204 Prepaid expenses 5,214 5,163 Investments in partnerships 14 75 Trust fees accrued/receivable 12,852 11,724 Income tax refund receivable 374 2,379 Federal Home Loan Bank stock 3,080 6,875 Other assets 5,751 3,592 Total $ 29,968 $ 32,687

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2019
Deposits.
Schedule of components of deposits	December 31, December 31, (dollars in thousands) 2019 2018 Noninterest-bearing $ 577,704 $ 550,640 Interest-bearing Interest-bearing demand 458,689 401,078 Savings accounts 55,777 53,971 Money market savings 683,064 598,820 Time deposits 196,082 170,587 Total interest-bearing 1,393,612 1,224,456 Total deposits $ 1,971,316 $ 1,775,096
Scheduled maturities of certificate of deposits	(dollars in thousands) Amount 2020 $ 158,834 2021 17,504 2022 5,770 2023 4,669 2024 2,551 Thereafter 6,754 Total $ 196,082

Short-Term Borrowings (Tables)

Short-Term Borrowings (Tables)	12 Months Ended
	Dec. 31, 2019
Short-Term Borrowings
Schedule of short-term borrowings	Year ended December 31, (dollars in thousands) 2019 2018 2017 Securities sold under agreements to repurchase Balance as of end of period $ — $ — $ — Average daily balance — — 28 Maximum month-end balance — — — Weighted-average rate During period — % — % 0.54 % End of period — % — % — % Fed funds purchased Balance as of end of period $ — $ 93,460 $ — Average daily balance 61,709 86,768 33,348 Maximum month-end balance 139,605 112,260 131,260 Weighted-average rate During period 2.54 % 2.18 % 1.33 % End of period — % 2.63 % — % FHLB Short-term advances Balance as of end of period $ — $ — $ 30,000 Average daily balance 9,712 82 39,069 Maximum month-end balance 135,000 — 120,000 Weighted-average rate During period 2.44 % 1.42 % 1.28 % End of period — % — % 1.42 %

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2019
Long-Term Debt.
Schedule of long-term debt	December 31, 2019 Period End Face Carrying Interest Maturity (dollars in thousands) Value Value Interest Rate Rate Date Call Date Subordinated notes payable $ 50,000 $ 49,625 Fixed 5.75 % 12/30/2025 12/30/2020 Junior subordinated debenture (Trust I) 4,124 3,402 Three-month LIBOR + 3.10% 5.05 % 6/26/2033 6/26/2008 Junior subordinated debenture (Trust II) 6,186 5,102 Three-month LIBOR + 1.80% 3.69 % 9/15/2036 9/15/2011 Finance lease liability 2,700 640 Fixed 7.81 % 10/31/2022 N/A Total long-term debt $ 63,010 $ 58,769 December 31, 2018 Period End Face Carrying Interest Maturity (dollars in thousands) Value Value Interest Rate Rate Date Call Date Subordinated notes payable $ 50,000 $ 49,562 Fixed 5.75 % 12/30/2025 12/30/2020 Junior subordinated debenture (Trust I) 4,124 3,357 Three-month LIBOR + 3.10% 5.92 % 6/26/2033 6/26/2008 Junior subordinated debenture (Trust II) 6,186 5,035 Three-month LIBOR + 1.80% 4.59 % 9/15/2036 9/15/2011 Obligations under capital lease 2,700 870 Fixed 7.81 % 10/31/2022 N/A Total long-term debt $ 63,010 $ 58,824

Financial Instruments with Of_2

Financial Instruments with Off-Balance Sheet Risk (Tables)	12 Months Ended
	Dec. 31, 2019
Financial Instruments with Off-Balance Sheet Risk
Schedule of financial instruments whose contract amount represents credit risk	December 31, December 31, (dollars in thousands) 2019 2018 Commitments to extend credit $ 586,365 $ 529,890 Standby letters of credit 8,516 8,852 Total $ 594,881 $ 538,742

Share-Based Compensation Plan (

Share-Based Compensation Plan (Tables)	12 Months Ended
	Dec. 31, 2019
Share-Based Compensation Plan
Schedule of stock plan activity	Year ended December 31, 2019 Year ended December 31, 2018 Weighted- Weighted- Average Grant Average Grant Awards Date Fair Value Awards Date Fair Value Restricted Stock and Restricted Stock Unit Awards Outstanding at beginning of period 337,014 $ 18.36 335,092 $ 15.36 Granted 70,617 19.87 86,371 22.58 Vested (53,994) 18.76 (79,753) 10.43 Forfeited or cancelled (6,426) 17.63 (4,696) 21.24 Outstanding at end of period 347,211 $ 18.64 337,014 $ 18.36
Share-based Retainer plan	Number of Shares Available for Restricted future stock grant awards Balance as of December 31, 2017 35,842 144,158 Retainer shares awarded (10,017) 10,017 Balance as of December 31, 2018 25,825 154,175 Retainer shares awarded (13,144) 13,144 Plan expiration (12,681) — Balance as of December 31, 2019 — 167,319

Employee Benefits (Tables)

Employee Benefits (Tables)	12 Months Ended
	Dec. 31, 2019
Employee Benefits
Schedule of retirement plan contributions under employee benefits	December 31, December 31, December 31, (dollars in thousands) 2019 2018 2017 Salary reduction plan $ 2,599 $ 2,402 $ 2,317 ESOP 1,836 1,665 1,684 Total $ 4,435 $ 4,067 $ 4,001 Total ESOP shares outstanding 1,307,439 1,334,372 1,393,395

Noninterest Income (Tables)

Noninterest Income (Tables)	12 Months Ended
	Dec. 31, 2019
Noninterest Income
Schedule of noninterest income	Year ended December 31, (dollars in thousands) 2019 2018 2017 Retirement and benefits $ 63,811 $ 63,316 $ 62,390 Wealth management 15,502 14,900 13,953 Mortgage banking (1) 25,805 17,630 19,748 Service charges on deposit accounts 1,772 1,808 1,854 Net gains (losses) on investment securities (1) 357 85 (13) Other Interchange fees 1,972 2,005 1,997 Bank-owned life insurance income (1) 803 803 820 Misc. transactional fees 1,236 1,106 1,070 Other noninterest income 2,936 1,096 1,226 Total noninterest income $ 114,194 $ 102,749 $ 103,045 (1) Not within the scope of ASC 606.

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Taxes
Schedule of components of income tax expense	Year ended December 31, (dollars in thousands) 2019 2018 2017 Federal Current $ 7,091 $ 5,801 $ 6,646 Deferred 267 (49) 2,975 Federal income tax 7,358 5,752 9,621 State Current 1,926 1,265 949 Deferred 72 155 734 State income tax 1,998 1,420 1,683 Deferred tax impairment and statutory rate change — — 6,210 Total income tax expense $ 9,356 $ 7,172 $ 17,514
Schedule of deferred tax assets and liabilities	December 31, December 31, (dollars in thousands) 2019 2018 Deferred Tax Assets Allowance for loan losses $ 5,893 $ 5,566 Employee compensation and benefit accruals 2,542 2,167 Expense accruals 935 740 Identifiable intangible amortization 3,369 3,351 Deferred loan fees 266 462 Net operating loss carry forwards 236 266 Nonaccrual loan interest — 143 Unrealized gain on available‑for‑sale investment securities — 1,207 Other 341 533 Total deferred tax assets from temporary differences 13,582 14,435 Deferred Tax Liabilities Accumulated depreciation 1,431 1,079 Goodwill and intangible amortization 1,835 1,443 Servicing assets 965 1,137 Prepaid expenses 804 644 Unrealized loss on available‑for‑sale investment securities 649 — Other 7 47 Total deferred tax liabilities from temporary differences 5,691 4,350 Net Deferred Tax Assets $ 7,891 $ 10,085
Schedule of effective income tax rate reconciliation	Year ended December 31, 2019 2018 2017 Percent of Percent of Percent of (dollars in thousands) Amount Pretax Income Amount Pretax Income Amount Pretax Income Taxes at statutory federal income tax rate $ 8,168 21.0 % $ 6,938 21.0 % $ 11,380 35.0 % Tax effect of: Tax exempt interest income (442) (1.1) (365) (1.1) (562) (1.7) State income taxes, net of federal benefits 1,618 4.2 1,399 4.2 1,414 4.3 Change in federal statutory tax rate — — — — 4,818 14.1 Deferred tax impairment — — — — 1,392 4.3 Nondeductible items and other 12 — (800) (2.4) (928) (2.9) Applicable income taxes $ 9,356 24.1 % $ 7,172 21.7 % $ 17,514 53.1 %

Segment Reporting (Tables)

Segment Reporting (Tables)	12 Months Ended
	Dec. 31, 2019
Segment Reporting
Schedule of key metrics related to segments	Year ended December 31, 2019 Retirement and Wealth Corporate (dollars in thousands) Banking Benefit Services Management Mortgage Administration Consolidated Net interest income $ 76,916 $ — $ — $ 1,245 $ (3,610) $ 74,551 Provision for loan losses 7,312 — — — — 7,312 Noninterest income 6,970 63,811 15,502 25,805 2,106 114,194 Noninterest expense 43,171 35,407 7,188 21,877 34,894 142,537 Net income before taxes $ 33,403 $ 28,404 $ 8,314 $ 5,173 $ (36,398) $ 38,896 Total assets $ 2,259,614 $ 39,021 $ 128 $ 47,703 $ 10,412 $ 2,356,878 Year ended December 31, 2018 Retirement and Wealth Corporate (dollars in thousands) Banking Benefit Services Management Mortgage Administration Consolidated Net interest income $ 77,919 $ — $ 62 $ 834 $ (3,591) $ 75,224 Provision for loan losses 8,599 — — 11 — 8,610 Noninterest income 6,921 63,316 14,900 17,630 (18) 102,749 Noninterest expense 42,605 36,414 6,824 17,199 33,283 136,325 Net income before taxes $ 33,636 $ 26,902 $ 8,138 $ 1,254 $ (36,892) $ 33,038 Total assets $ 2,120,249 $ 41,492 $ 3,235 $ 14,600 $ (506) $ 2,179,070 Year ended December 31, 2017 Retirement and Wealth Corporate (dollars in thousands) Banking Benefit Services Management Mortgage Administration Consolidated Net interest income $ 70,377 $ — $ 57 $ 740 $ (3,504) $ 67,670 Provision for loan losses 3,280 — — — — 3,280 Noninterest income 7,180 62,390 13,953 19,748 (226) 103,045 Noninterest expense 35,996 41,977 7,640 17,448 31,859 134,920 Net income before taxes $ 38,281 $ 20,413 $ 6,370 $ 3,040 $ (35,589) $ 32,515 Total assets $ 2,078,013 $ 38,118 $ 2,718 $ 18,669 $ (1,437) $ 2,136,081

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2019
Earnings Per Share
Schedule of basic and diluted earnings per share	The calculation of basic and diluted earnings per share using the two-class method for the year ending December 31, 2019 is presented below: Year ended December 31, (dollars and shares in thousands, except per share data) 2019 Net income $ 29,540 Dividends and undistributed earnings allocated to participating securities 647 Net income available to common shareholders $ 28,893 Weighted-average common shares outstanding for basic earnings per share 14,736 Dilutive effect of stock-based awards 357 Weighted-average common shares outstanding for diluted earnings per share 15,093 Earnings per common share: Basic earnings per common share $ 1.96 Diluted earnings per common share $ 1.91 The calculation of basic and diluted earnings per share using the treasury stock method for the years ending December 31, 2018 and 2017 is presented below: Year ended December 31, (dollars and shares in thousands, except per share data) 2018 2017 Basic: Net income attributable to common shareholders $ 25,866 $ 15,001 Weighted-average common shares outstanding 13,763 13,653 Basic earnings per common share $ 1.88 $ 1.10 Diluted: Net income attributable to common shareholders 25,866 15,001 Weighted-average common shares outstanding 13,763 13,653 Add: Dilutive effect of stock-based awards 300 354 Weighted-average common shares outstanding for diluted EPS 14,063 14,007 Diluted earnings per common share $ 1.84 1.07

Related Party Transactions (Tab

Related Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2019
Related Party Transactions
Schedule Of Related Party Transactions	Year ended December 31, (dollars in thousands) 2019 2018 Beginning balance $ 12,611 $ 19,905 New loans and advances 498 837 Repayments (588) (3,346) Changes to related parties (1) (12,214) (4,785) Ending balance $ 307 $ 12,611 (1) Represents changes related to directors that retired from our Board during the year.

Derivative Instruments (Tables)

Derivative Instruments (Tables)	12 Months Ended
	Dec. 31, 2019
Derivative Instruments
Schedule of amounts recorded in the Company’s consolidated balance sheets for derivatives not designated as hedging instruments	December 31, 2019 December 31, 2018 Fair Notional Fair Notional (dollars in thousands) Value Amount Value Amount Asset Derivatives Consolidated Balance Sheet Location Interest rate lock commitments Other assets $ 1,228 $ 45,715 $ 12 $ 33,858 Forward loan sales commitments Other assets 393 12,784 — — TBA mortgage backed securities Other assets — — — — Total asset derivatives $ 1,621 $ 58,499 $ 12 $ 33,858 Liability Derivatives Interest rate lock commitments Accrued expenses and other liabilities $ — $ — $ — $ — Forward loan sales commitments Accrued expenses and other liabilities — — 7 2,956 TBA mortgage backed securities Accrued expenses and other liabilities 109 68,500 — — Total liability derivatives $ 109 $ 68,500 $ 7 $ 2,956
Schedule of gain (loss) recognized on derivatives instruments	Year ended Consolidated Statements of December 31, December 31, December 31, (dollars in thousands) Income Location 2019 2018 2017 Interest rate lock commitments Mortgage banking $ 1,216 $ 14 $ 70 Forward loan sales commitments Mortgage banking 400 (16) (96) TBA mortgage backed securities Mortgage banking (109) — — Total gain/(loss) from derivative instruments $ 1,507 $ (2) $ (26)

Regulatory Matters (Tables)

Regulatory Matters (Tables)	12 Months Ended
	Dec. 31, 2019
Regulatory Matters
Schedule of Bank’s actual capital amounts and ratios	December 31, 2019 Minimum to be Requirements Well Capitalized for Capital Under Prompt Actual Adequacy Purposes Corrective Action (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Common equity tier 1 capital to risk weighted assets Consolidated $ 239,672 12.48 % 86,452 4.50 % N/A N/A Bank 228,512 11.91 % 86,362 4.50 % 124,745 6.50 % Tier 1 capital to risk weighted assets . Consolidated 247,866 12.90 % 115,270 6.00 % N/A N/A Bank 228,512 11.91 % 115,149 6.00 % 153,532 8.00 % Total capital to risk weighted assets Consolidated 321,415 16.73 % 153,693 8.00 % N/A N/A Bank 252,436 13.15 % 153,532 8.00 % 191,915 10.00 % Tier 1 capital to average assets Consolidated 247,866 11.05 % 91,504 4.00 % N/A N/A Bank 228,512 10.20 % 89,615 4.00 % 112,018 5.00 % December 31, 2018 Minimum to be Requirements Well Capitalized for Capital Under Prompt Actual Adequacy Purposes Corrective Action (dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Common equity tier 1 capital to risk weighted assets Consolidated $ 151,745 8.43 % N/A N/A N/A N/A Bank 204,680 11.39 % 80,866 4.50 % 116,806 6.50 % Tier 1 capital to risk weighted assets Consolidated 159,774 8.87 % N/A N/A N/A N/A Bank 204,680 11.39 % 107,821 6.00 % 143,761 8.00 % Total capital to risk weighted assets Consolidated 231,510 12.86 % N/A N/A N/A N/A Bank 226,854 12.62 % 143,806 8.00 % 179,758 10.00 % Tier 1 capital to average assets Consolidated 159,774 7.51 % N/A N/A N/A N/A Bank 204,680 9.63 % 85,018 4.00 % 106,272 5.00 %

Fair Value of Assets and Liab_2

Fair Value of Assets and Liabilities (Tables)	12 Months Ended
	Dec. 31, 2019
Fair Value of Assets and Liabilities
Summary of balances of the assets and liabilities measured at estimated fair value on a recurring basis	December 31, 2019 (dollars in thousands) Level 1 Level 2 Level 3 Total Trading securities U.S. treasury and government agencies $ — $ — $ — $ — Available-for-sale and equity securities U.S. treasury and government agencies $ — $ 21,240 $ — $ 21,240 Obligations of state and political agencies — 68,648 — 68,648 Mortgage backed securities Residential agency — 182,538 — 182,538 Commercial — 30,685 — 30,685 Asset backed securities — 144 — 144 Corporate bonds — 7,095 — 7,095 Equity securities 2,808 — — 2,808 Total available-for-sale and equity securities $ 2,808 $ 310,350 $ — $ 313,158 Other assets Derivatives $ — $ 1,621 $ — $ 1,621 Other liabilities Derivatives $ — $ 109 $ — $ 109 December 31, 2018 (dollars in thousands) Level 1 Level 2 Level 3 Total Trading securities U.S. treasury and government agencies $ — $ 1,539 $ — $ 1,539 Available-for-sale and equity securities U.S. treasury and government agencies $ — $ 19,142 $ — $ 19,142 Obligations of state and political agencies — 66,387 — 66,387 Mortgage backed securities Residential agency — 126,998 — 126,998 Commercial — 28,767 — 28,767 Asset backed securities — 399 — 399 Corporate bonds — 8,481 — 8,481 Equity securities 3,165 — — 3,165 Total available-for-sale and equity securities $ 3,165 $ 250,174 $ — $ 253,339 Other assets Derivatives $ — $ 12 $ — $ 12 Other liabilities Derivatives $ — $ 7 $ — $ 7
Schedule of net impairment losses related to nonrecurring estimated fair value measurements of certain assets	December 31, 2019 (dollars in thousands) Level 2 Level 3 Total Impairment Loans held for sale $ 46,846 $ — $ 46,846 $ — Loans held for branch sale — — — — Impaired loans — 4,816 4,816 3,138 Foreclosed assets — 8 8 — Servicing rights — 3,845 3,845 — December 31, 2018 (dollars in thousands) Level 2 Level 3 Total Impairment Loans held for sale $ 14,486 $ — $ 14,486 $ — Loans held for branch sale — 32,031 32,031 — Impaired loans — 4,022 4,022 2,538 Foreclosed assets — 84 84 245 Servicing rights — 4,623 4,623 —
Schedule of valuation techniques and significant unobservable inputs used to measure Level 3 estimated fair values	December 31, 2019 (dollars in thousands) Weighted Asset Type Valuation Technique Unobservable Input Fair Value Range Average Impaired loans Appraisal value Property specific adjustment 4,816 N/A N/A Foreclosed assets Appraisal value Property specific adjustment 8 N/A N/A Servicing rights Discounted cash flows Prepayment speed assumptions 3,845 123-267 194 Discount rate 9.4 % 9.4 % December 31, 2018 (dollars in thousands) Weighted Asset Type Valuation Technique Unobservable Input Fair Value Range Average Loans held for branch sale (1) Discounted cash flows Sales agreement 32,031 N/A N/A Impaired loans Appraisal value Property specific adjustment 4,022 N/A N/A Foreclosed assets Appraisal value Property specific adjustment 84 N/A N/A Servicing rights Discounted cash flows Prepayment speed assumptions 4,623 104 - 211 130 Discount rate 10.5 % 10.5 % (1) The significant unobservable input related to the loans held for branch sale was the third party sales agreement the Bank entered into on January 15, 2019.
Summary of estimated fair values and related carrying or notional amounts, of the Company’s financial instruments	December 31, 2019 Carrying Estimated Fair Value (dollars in thousands) Amount Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ 144,006 $ 144,006 $ — $ — $ 144,006 Loans 1,697,355 — — 1,693,824 1,693,824 Accrued interest receivable 7,551 7,551 — — 7,551 Bank-owned life insurance 31,566 — 31,566 — 31,566 Financial Liabilities Noninterest-bearing transaction $ 577,704 $ — $ 577,704 $ — $ 577,704 Interest-bearing transaction 1,197,530 — 1,197,530 — 1,197,530 Time deposits 196,082 — — 196,182 196,182 Short-term borrowings — — — — — Long-term debt 58,769 — 58,239 — 58,239 Accrued interest payable 1,038 1,038 — — 1,038 December 31, 2018 Carrying Estimated Fair Value (dollars in thousands) Amount Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ 40,651 $ 40,651 $ — $ — $ 40,651 Loans 1,679,676 — — 1,663,401 1,663,401 Accrued interest receivable 7,645 7,645 — — 7,645 Bank-owned life insurance 30,763 — 30,763 — 30,763 Financial Liabilities Noninterest-bearing transaction $ 550,640 $ — $ 550,640 $ — $ 550,640 Interest-bearing transaction 1,053,869 — 1,053,869 — 1,053,869 Time deposits 170,587 — — 172,616 172,616 Deposits held for sale 24,197 — — 22,019 22,019 Short-term borrowings 93,460 93,460 — — 93,460 Long-term debt 58,824 — 59,988 — 59,988 Accrued interest payable 1,879 1,879 — — 1,879

Parent Company Only Financial_2

Parent Company Only Financial Statements (Tables)	12 Months Ended
	Dec. 31, 2019
Parent Company Only Financial Statements
Schedule Of Condensed Balance Sheet	December 31, December 31, (dollars in thousands) 2019 2018 Assets Cash and cash equivalents $ 73,647 $ 8,207 Land, premises and equipment, net 318 433 Investment in subsidiaries 274,878 250,252 Deferred income taxes, net 998 933 Other assets 1,034 1,538 Total assets $ 350,875 $ 261,363 Liabilities and Stockholders’ Equity Long‑term debt $ 58,769 $ 58,824 Accrued expenses and other liabilities 6,378 5,585 Total liabilities 65,147 64,409 Commitments and contingent liabilities ESOP‑owned shares — 34,494 Stockholders’ equity 285,728 196,954 Less: ESOP‑owned shares — (34,494) Total stockholders’ equity 285,728 162,460 Total liabilities and stockholders’ equity $ 350,875 $ 261,363
Condensed Income Statement	Year ended December 31, (dollars in thousands) 2019 2018 2017 Income Dividends from subsidiaries $ 15,000 $ 11,470 $ 7,845 Other income 15 14 16 Total operating income 15,015 11,484 7,861 Expenses 5,999 5,964 5,038 Income before equity in undistributed income 9,016 5,520 2,823 Equity in undistributed income of subsidiaries 19,089 18,852 10,755 Income before income taxes 28,105 24,372 13,578 Income tax benefit 1,435 1,494 1,423 Net income $ 29,540 $ 25,866 $ 15,001
Condensed Cash Flow Statement	Year ended December 31, (dollars in thousands) 2019 2018 2017 Operating activities Net income $ 29,540 $ 25,866 $ 15,001 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed income of subsidiaries (19,089) (18,852) (10,755) Depreciation and amortization 115 116 116 Stock‑based compensation cost 251 370 315 Other, net 2,676 1,314 4,904 Net cash provided by operating activities 13,493 8,814 9,581 Investing activities Investment in bank subsidiary — — — Acquisitions, net cash acquired — — — Net cash provided by investing activities — — — Financing activities Cash dividends paid on common stock (8,909) (7,456) (6,729) Repurchase of common stock (1,948) (356) (294) Proceeds from the issuance of common stock in initial public offering net of issuance costs 62,804 — — Net cash provided by financing activities 51,947 (7,812) (7,023) Change in cash and cash equivalents 65,440 1,002 2,558 Cash and cash equivalents at beginning of period 8,207 7,205 4,647 Cash and cash equivalents at end of period $ 73,647 $ 8,207 $ 7,205

Quarterly Condensed Financial_2

Quarterly Condensed Financial Information (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2019
Quarterly Condensed Financial Information (Unaudited)
Schedule of unaudited quarterly condensed financial information	2019 Quarter Ended (dollars in thousands, except per share data) March 31, June 30, September 30, December 31, Interest income $ 23,310 $ 23,478 $ 23,625 $ 22,887 Interest expense 4,190 5,187 4,944 4,428 Net interest income 19,120 18,291 18,681 18,459 Provision for loan losses 2,220 1,797 1,498 1,797 Net interest income after provision for loan losses 16,900 16,494 17,183 16,662 Noninterest income 25,074 29,984 29,580 29,556 Noninterest expense 33,514 35,261 37,327 36,435 Income before income taxes 8,460 11,217 9,436 9,783 Income tax expense 2,024 2,869 2,332 2,131 Net income $ 6,436 $ 8,348 $ 7,104 $ 7,652 Per common share data Basic earnings per common share $ 0.47 $ 0.60 $ 0.49 $ 0.44 Diluted earnings per common share $ 0.46 $ 0.59 $ 0.48 $ 0.43 2018 Quarter Ended (dollars in thousands, except per share data) March 31, June 30, September 30, December 31, Interest income $ 20,458 $ 21,816 $ 22,197 $ 23,231 Interest expense 2,316 2,916 3,268 3,978 Net interest income 18,142 18,900 18,929 19,253 Provision for loan losses 1,530 4,020 1,530 1,530 Net interest income after provision for loan losses 16,612 14,880 17,399 17,723 Noninterest income 24,256 26,094 26,258 26,141 Noninterest expense 32,270 33,808 34,336 35,911 Income before income taxes 8,598 7,166 9,321 7,953 Income tax expense 1,734 1,567 1,951 1,920 Net income $ 6,864 $ 5,599 $ 7,370 $ 6,033 Per common share data Basic earnings per common share $ 0.50 $ 0.41 $ 0.53 $ 0.44 Diluted earnings per common share $ 0.49 $ 0.40 $ 0.52 $ 0.43

Significant Accounting Polici_3

Significant Accounting Policies (Details) $ in Thousands	Sep. 25, 2019USD ($)shares	Sep. 17, 2019shares	Dec. 31, 2019USD ($)segmentshares	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Significant Accounting Policies
Number of operating segments | segment			4
Shares sold | shares			3,289,000
Aggregate offering price	$ 69,100		$ 62,804		$ 6
Underwriting Discounts	4,700
Offering cost	1,600
Net proceeds	$ 62,800
Percentage of commercial and industrial loans not secured by real estate			27.80%	30.00%
Period when accrual of interest on loans is discontinued when loans are past due			90 days
Unrecognized tax position pertaining to interest and penalties			$ 0	$ 0	$ 0
Threshold days on weighted average closing price			20 days
IPO
Significant Accounting Policies
Shares sold | shares		2,860,000
Underwriter
Significant Accounting Policies
Shares sold | shares	429,000
Maximum
Significant Accounting Policies
Period when consumer loans are charged off when loans are past due			120 days

New Accounting Pronouncements (

New Accounting Pronouncements (Details)	Jan. 01, 2019
New Accounting Pronouncements
Lease, Practical Expedients, Package [true false]	true
Lease, Practical Expedient, Use of Hindsight [true false]	false

Restrictions on Cash and Due _2

Restrictions on Cash and Due from Banks (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Restrictions on Cash and Due from Banks
Amount of minimum average reserve balances required to be maintained	$ 13.8	$ 9.1
Balances at the Federal Reserve Bank and other financial institutions	$ 109.4	$ 7.2

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Investment securities available-for-sale
Amortized Cost	$ 307,764	$ 254,982
Unrealized Gains	3,061	406
Unrealized Losses	(475)	(5,214)
Fair Value	310,350	250,174
U.S. treasury and government agencies
Investment securities available-for-sale
Amortized Cost	21,246	19,364
Unrealized Gains	9
Unrealized Losses	(15)	(222)
Fair Value	21,240	19,142
Obligations of state and political agencies
Investment securities available-for-sale
Amortized Cost	68,162	67,662
Unrealized Gains	647	171
Unrealized Losses	(161)	(1,446)
Fair Value	68,648	66,387
Mortgage backed securities - Residential Agency
Investment securities available-for-sale
Amortized Cost	180,411	129,906
Unrealized Gains	2,258	210
Unrealized Losses	(131)	(3,118)
Fair Value	182,538	126,998
Mortgage backed securities - Commercial
Investment securities available-for-sale
Amortized Cost	30,752	29,050
Unrealized Gains	101	20
Unrealized Losses	(168)	(303)
Fair Value	30,685	28,767
Asset backed securities
Investment securities available-for-sale
Amortized Cost	139	398
Unrealized Gains	5	5
Unrealized Losses		(4)
Fair Value	144	399
Corporate bonds
Investment securities available-for-sale
Amortized Cost	7,054	8,602
Unrealized Gains	41
Unrealized Losses		(121)
Fair Value	$ 7,095	$ 8,481

Investment Securities - Amortiz

Investment Securities - Amortized cost and estimated fair value (Details) $ in Thousands	Dec. 31, 2019USD ($)
Amortized Cost
Due within one year or less	$ 14,799
Due after one year through five years	25,193
Due after five years through ten years	83,987
Due after 10 years	183,785
Total investment securities available-for-sale	307,764
Fair Value
Due within one year or less	14,807
Due after one year through five years	25,315
Due after five years through ten years	84,965
Due after 10 years	185,263
Total investment securities available-for-sale	$ 310,350

Investment Securities - Pledged

Investment Securities - Pledged (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Investment Securities
Investment securities with carrying value	$ 136.2	$ 149

Investment Securities - Proceed

Investment Securities - Proceeds from sale of available for sale securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Investment Securities
Proceeds	$ 32,565	$ 6,488
Realized gains	357	144
Realized losses	$ (22)	$ (15)

Investment Securities - Gross u

Investment Securities - Gross unrealized losses (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Investment securities available-for-sale
Unrealized losses less than 12 months	$ (313)	$ (91)
Fair value less than 12 months	46,067	20,875
Unrealized losses over 12 months	(162)	(5,123)
Fair value over 12 months	36,019	198,038
Total Unrealized losses	(475)	(5,214)
Total Fair value	82,086	218,913
U.S. treasury and government agencies
Investment securities available-for-sale
Unrealized losses less than 12 months	(5)	(8)
Fair value less than 12 months	1,740	5,288
Unrealized losses over 12 months	(10)	(214)
Fair value over 12 months	9,990	11,598
Total Unrealized losses	(15)	(222)
Total Fair value	11,730	16,886
Obligations of state and political agencies
Investment securities available-for-sale
Unrealized losses less than 12 months	(140)
Fair value less than 12 months	11,959	389
Unrealized losses over 12 months	(21)	(1,446)
Fair value over 12 months	5,798	55,770
Total Unrealized losses	(161)	(1,446)
Total Fair value	17,757	56,159
Mortgage backed securities - Residential Agency
Investment securities available-for-sale
Unrealized losses less than 12 months	(52)	(44)
Fair value less than 12 months	17,131	7,352
Unrealized losses over 12 months	(79)	(3,074)
Fair value over 12 months	14,036	112,293
Total Unrealized losses	(131)	(3,118)
Total Fair value	31,167	119,645
Mortgage backed securities - Commercial
Investment securities available-for-sale
Unrealized losses less than 12 months	(116)	(39)
Fair value less than 12 months	15,235	7,844
Unrealized losses over 12 months	(52)	(264)
Fair value over 12 months	6,195	9,741
Total Unrealized losses	(168)	(303)
Total Fair value	21,430	17,585
Asset backed securities
Investment securities available-for-sale
Fair value less than 12 months	2	2
Unrealized losses over 12 months		(4)
Fair value over 12 months		155
Total Unrealized losses		(4)
Total Fair value	$ 2	157
Corporate bonds
Investment securities available-for-sale
Unrealized losses over 12 months		(121)
Fair value over 12 months		8,481
Total Unrealized losses		(121)
Total Fair value		$ 8,481

Investment Securities - Carryin

Investment Securities - Carrying value (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Investment Securities
Federal Reserve	$ 2,675	$ 2,675
FHLB	$ 3,080	$ 6,875

Investment Securities - Visa Cl

Investment Securities - Visa Class B Restricted Shares (Details) - Visa $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)shares	Dec. 31, 2018USD ($)
Common Class A
Securities
Investment shares owned, if converted	11,236
Common Class B
Securities
Conversion ratio	1.6228
Investment shares owned	6,924
Cost basis | $	$ 0	$ 0

Loans and Allowance for Loan _3

Loans and Allowance for Loan Losses - Loans outstanding by portfolio segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Loans and Allowance for Loan Losses
Total loans	$ 1,721,279	$ 1,701,850
Deferred loan fees and costs	1,000	1,700
Commercial
Loans and Allowance for Loan Losses
Total loans	1,000,225	969,634
Consumer
Loans and Allowance for Loan Losses
Total loans	721,054	732,216
Commercial and industrial | Commercial
Loans and Allowance for Loan Losses
Total loans	479,144	510,706
Real estate construction | Commercial
Loans and Allowance for Loan Losses
Total loans	26,378	18,965
Residential | Consumer | Real estate first mortgage
Loans and Allowance for Loan Losses
Total loans	457,155	448,143
Residential | Consumer | Real estate junior lien
Loans and Allowance for Loan Losses
Total loans	177,373	188,855
Commercial real estate | Commercial
Loans and Allowance for Loan Losses
Total loans	494,703	439,963
Other revolving and installment | Consumer
Loans and Allowance for Loan Losses
Total loans	$ 86,526	$ 95,218

Loans and Allowance for Loan _4

Loans and Allowance for Loan Losses - Past due aging analysis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Past due aging analysis of loans
Loans and Leases Receivable, Gross, Total	$ 1,721,279	$ 1,701,850
Interest income foregone on nonaccrual loans	400	300	$ 200
Performing
Past due aging analysis of loans
Accruing Current	1,711,189	1,688,311
Nonperforming
Past due aging analysis of loans
Nonaccrual	7,379	6,963
30 - 89 Days Past Due | Performing
Past due aging analysis of loans
Past due	2,263	6,576
90 Days or More Past Due | Performing
Past due aging analysis of loans
Past due	448
Commercial
Past due aging analysis of loans
Loans and Leases Receivable, Gross, Total	1,000,225	969,634
Commercial | Performing
Past due aging analysis of loans
Accruing Current	992,858	961,724
Commercial | Nonperforming
Past due aging analysis of loans
Nonaccrual	6,302	5,095
Commercial | 30 - 89 Days Past Due | Performing
Past due aging analysis of loans
Past due	1,065	2,815
Commercial | Commercial and industrial
Past due aging analysis of loans
Loans and Leases Receivable, Gross, Total	479,144	510,706
Commercial | Commercial and industrial | Performing
Past due aging analysis of loans
Accruing Current	473,900	504,313
Commercial | Commercial and industrial | Nonperforming
Past due aging analysis of loans
Nonaccrual	4,862	3,578
Commercial | Commercial and industrial | 30 - 89 Days Past Due | Performing
Past due aging analysis of loans
Past due	382	2,815
Commercial | Real estate construction
Past due aging analysis of loans
Loans and Leases Receivable, Gross, Total	26,378	18,965
Commercial | Real estate construction | Performing
Past due aging analysis of loans
Accruing Current	26,251	18,965
Commercial | Real estate construction | 30 - 89 Days Past Due | Performing
Past due aging analysis of loans
Past due	127
Commercial | Commercial real estate
Past due aging analysis of loans
Loans and Leases Receivable, Gross, Total	494,703	439,963
Commercial | Commercial real estate | Performing
Past due aging analysis of loans
Accruing Current	492,707	438,446
Commercial | Commercial real estate | Nonperforming
Past due aging analysis of loans
Nonaccrual	1,440	1,517
Commercial | Commercial real estate | 30 - 89 Days Past Due | Performing
Past due aging analysis of loans
Past due	556
Consumer
Past due aging analysis of loans
Loans and Leases Receivable, Gross, Total	721,054	732,216
Consumer | Performing
Past due aging analysis of loans
Accruing Current	718,331	726,587
Consumer | Nonperforming
Past due aging analysis of loans
Nonaccrual	1,077	1,868
Consumer | 30 - 89 Days Past Due | Performing
Past due aging analysis of loans
Past due	1,198	3,761
Consumer | 90 Days or More Past Due | Performing
Past due aging analysis of loans
Past due	448
Consumer | Residential | Real estate first mortgage
Past due aging analysis of loans
Loans and Leases Receivable, Gross, Total	457,155	448,143
Consumer | Residential | Real estate first mortgage | Performing
Past due aging analysis of loans
Accruing Current	455,244	444,470
Consumer | Residential | Real estate first mortgage | Nonperforming
Past due aging analysis of loans
Nonaccrual	797	1,262
Consumer | Residential | Real estate first mortgage | 30 - 89 Days Past Due | Performing
Past due aging analysis of loans
Past due	666	2,411
Consumer | Residential | Real estate first mortgage | 90 Days or More Past Due | Performing
Past due aging analysis of loans
Past due	448
Consumer | Residential | Real estate junior lien
Past due aging analysis of loans
Loans and Leases Receivable, Gross, Total	177,373	188,855
Consumer | Residential | Real estate junior lien | Performing
Past due aging analysis of loans
Accruing Current	176,915	187,502
Consumer | Residential | Real estate junior lien | Nonperforming
Past due aging analysis of loans
Nonaccrual	274	584
Consumer | Residential | Real estate junior lien | 30 - 89 Days Past Due | Performing
Past due aging analysis of loans
Past due	184	769
Consumer | Other revolving and installment
Past due aging analysis of loans
Loans and Leases Receivable, Gross, Total	86,526	95,218
Consumer | Other revolving and installment | Performing
Past due aging analysis of loans
Accruing Current	86,172	94,615
Consumer | Other revolving and installment | Nonperforming
Past due aging analysis of loans
Nonaccrual	6	22
Consumer | Other revolving and installment | 30 - 89 Days Past Due | Performing
Past due aging analysis of loans
Past due	$ 348	$ 581

Loans and Allowance for Loan _5

Loans and Allowance for Loan Losses - Loans by risk category (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Loans outstanding by loan portfolio segment and risk category
Loans	$ 1,721,279	$ 1,701,850
Pass
Loans outstanding by loan portfolio segment and risk category
Loans	1,654,719	1,614,365
Special Mention
Loans outstanding by loan portfolio segment and risk category
Loans	12,226	18,359
Substandard
Loans outstanding by loan portfolio segment and risk category
Loans	54,334	67,563
Doubtful
Loans outstanding by loan portfolio segment and risk category
Loans		1,563
Commercial
Loans outstanding by loan portfolio segment and risk category
Loans	1,000,225	969,634
Commercial | Pass
Loans outstanding by loan portfolio segment and risk category
Loans	935,719	884,653
Commercial | Special Mention
Loans outstanding by loan portfolio segment and risk category
Loans	12,226	18,359
Commercial | Substandard
Loans outstanding by loan portfolio segment and risk category
Loans	52,280	65,059
Commercial | Doubtful
Loans outstanding by loan portfolio segment and risk category
Loans		1,563
Commercial | Commercial and industrial
Loans outstanding by loan portfolio segment and risk category
Loans	479,144	510,706
Commercial | Commercial and industrial | Pass
Loans outstanding by loan portfolio segment and risk category
Loans	448,306	459,565
Commercial | Commercial and industrial | Special Mention
Loans outstanding by loan portfolio segment and risk category
Loans	9,585	12,055
Commercial | Commercial and industrial | Substandard
Loans outstanding by loan portfolio segment and risk category
Loans	21,253	37,523
Commercial | Commercial and industrial | Doubtful
Loans outstanding by loan portfolio segment and risk category
Loans		1,563
Commercial | Real estate construction
Loans outstanding by loan portfolio segment and risk category
Loans	26,378	18,965
Commercial | Real estate construction | Pass
Loans outstanding by loan portfolio segment and risk category
Loans	25,119	17,910
Commercial | Real estate construction | Special Mention
Loans outstanding by loan portfolio segment and risk category
Loans	282
Commercial | Real estate construction | Substandard
Loans outstanding by loan portfolio segment and risk category
Loans	977	1,055
Commercial | Commercial real estate
Loans outstanding by loan portfolio segment and risk category
Loans	494,703	439,963
Commercial | Commercial real estate | Pass
Loans outstanding by loan portfolio segment and risk category
Loans	462,294	407,178
Commercial | Commercial real estate | Special Mention
Loans outstanding by loan portfolio segment and risk category
Loans	2,359	6,304
Commercial | Commercial real estate | Substandard
Loans outstanding by loan portfolio segment and risk category
Loans	30,050	26,481
Consumer
Loans outstanding by loan portfolio segment and risk category
Loans	721,054	732,216
Consumer | Pass
Loans outstanding by loan portfolio segment and risk category
Loans	719,000	729,712
Consumer | Substandard
Loans outstanding by loan portfolio segment and risk category
Loans	2,054	2,504
Consumer | Residential | Real estate first mortgage
Loans outstanding by loan portfolio segment and risk category
Loans	457,155	448,143
Consumer | Residential | Real estate first mortgage | Pass
Loans outstanding by loan portfolio segment and risk category
Loans	456,358	448,124
Consumer | Residential | Real estate first mortgage | Substandard
Loans outstanding by loan portfolio segment and risk category
Loans	797	19
Consumer | Residential | Real estate junior lien
Loans outstanding by loan portfolio segment and risk category
Loans	177,373	188,855
Consumer | Residential | Real estate junior lien | Pass
Loans outstanding by loan portfolio segment and risk category
Loans	176,122	186,370
Consumer | Residential | Real estate junior lien | Substandard
Loans outstanding by loan portfolio segment and risk category
Loans	1,251	2,485
Consumer | Other revolving and installment
Loans outstanding by loan portfolio segment and risk category
Loans	86,526	95,218
Consumer | Other revolving and installment | Pass
Loans outstanding by loan portfolio segment and risk category
Loans	86,520	$ 95,218
Consumer | Other revolving and installment | Substandard
Loans outstanding by loan portfolio segment and risk category
Loans	$ 6

Loans and Allowance for Loan _6

Loans and Allowance for Loan Losses - Changes in allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Changes in the allowance
Beginning Balance	$ 22,174	$ 16,564	$ 15,615
Provision for loan losses	7,312	8,610	3,280
Loan charge-offs	(7,578)	(4,253)	(4,840)
Loan recoveries	2,016	1,253	2,509
Ending Balance	23,924	22,174	16,564
Unallocated
Changes in the allowance
Beginning Balance	1,177	911	1,516
Provision for loan losses	1,015	266	(605)
Ending Balance	2,192	1,177	911
Commercial
Changes in the allowance
Beginning Balance	18,656	12,841	11,666
Provision for loan losses	3,797	8,765	3,180
Loan charge-offs	(6,541)	(3,783)	(3,287)
Loan recoveries	1,623	833	1,282
Ending Balance	17,535	18,656	12,841
Commercial | Commercial and industrial
Changes in the allowance
Beginning Balance	12,127	7,589	6,702
Provision for loan losses	5,213	6,911	3,244
Loan charge-offs	(6,540)	(3,123)	(3,287)
Loan recoveries	1,470	750	930
Ending Balance	12,270	12,127	7,589
Commercial | Real estate construction
Changes in the allowance
Beginning Balance	250	343	480
Provision for loan losses	51	(35)	(416)
Loan charge-offs	(1)	(60)
Loan recoveries	3	2	279
Ending Balance	303	250	343
Commercial | Commercial real estate
Changes in the allowance
Beginning Balance	6,279	4,909	4,484
Provision for loan losses	(1,467)	1,889	352
Loan charge-offs		(600)
Loan recoveries	150	81	73
Ending Balance	4,962	6,279	4,909
Consumer
Changes in the allowance
Beginning Balance	2,341	2,812	2,433
Provision for loan losses	2,500	(421)	705
Loan charge-offs	(1,037)	(470)	(1,553)
Loan recoveries	393	420	1,227
Ending Balance	4,197	2,341	2,812
Consumer | Residential | Real estate first mortgage
Changes in the allowance
Beginning Balance	1,156	1,411	1,126
Provision for loan losses	292	(226)	182
Loan charge-offs		(29)
Loan recoveries			103
Ending Balance	1,448	1,156	1,411
Consumer | Residential | Real estate junior lien
Changes in the allowance
Beginning Balance	805	902	907
Provision for loan losses	1,825	(171)	247
Loan charge-offs	(465)	(133)	(1,124)
Loan recoveries	232	207	872
Ending Balance	2,397	805	902
Consumer | Other revolving and installment
Changes in the allowance
Beginning Balance	380	499	400
Provision for loan losses	383	(24)	276
Loan charge-offs	(572)	(308)	(429)
Loan recoveries	161	213	252
Ending Balance	$ 352	$ 380	$ 499

Loans and Allowance for Loan _7

Loans and Allowance for Loan Losses - Components of loans and associated allowance (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Loans and Allowance for Loan Losses
Recorded Investment, Individually Evaluated	$ 7,954	$ 6,560
Recorded Investment, Collectively Evaluated	1,713,325	1,695,290
Loans and Leases Receivable, Gross, Total	1,721,279	1,701,850
Allowance Allocation, Individually Evaluated	3,138	2,538
Allowance Allocation, Collectively Evaluated	18,594	18,459
Allowance Allocation, Unallocated	2,192	1,177
Loans and Leases Receivable, Allowance, Total	23,924	22,174	$ 16,564	$ 15,615
Commercial
Loans and Allowance for Loan Losses
Recorded Investment, Individually Evaluated	6,901	5,629
Recorded Investment, Collectively Evaluated	993,324	964,005
Loans and Leases Receivable, Gross, Total	1,000,225	969,634
Allowance Allocation, Individually Evaluated	3,135	2,514
Allowance Allocation, Collectively Evaluated	14,400	16,142
Loans and Leases Receivable, Allowance, Total	17,535	18,656	12,841	11,666
Commercial | Commercial and industrial
Loans and Allowance for Loan Losses
Recorded Investment, Individually Evaluated	976	3,945
Recorded Investment, Collectively Evaluated	478,168	506,761
Loans and Leases Receivable, Gross, Total	479,144	510,706
Allowance Allocation, Individually Evaluated	189	2,059
Allowance Allocation, Collectively Evaluated	12,081	10,068
Loans and Leases Receivable, Allowance, Total	12,270	12,127	7,589	6,702
Commercial | Real estate construction
Loans and Allowance for Loan Losses
Recorded Investment, Collectively Evaluated	26,378	18,965
Loans and Leases Receivable, Gross, Total	26,378	18,965
Allowance Allocation, Collectively Evaluated	303	250
Loans and Leases Receivable, Allowance, Total	303	250	343	480
Commercial | Commercial real estate
Loans and Allowance for Loan Losses
Recorded Investment, Individually Evaluated	5,925	1,684
Recorded Investment, Collectively Evaluated	488,778	438,279
Loans and Leases Receivable, Gross, Total	494,703	439,963
Allowance Allocation, Individually Evaluated	2,946	455
Allowance Allocation, Collectively Evaluated	2,016	5,824
Loans and Leases Receivable, Allowance, Total	4,962	6,279	4,909	4,484
Consumer
Loans and Allowance for Loan Losses
Recorded Investment, Individually Evaluated	1,053	931
Recorded Investment, Collectively Evaluated	720,001	731,285
Loans and Leases Receivable, Gross, Total	721,054	732,216
Allowance Allocation, Individually Evaluated	3	24
Allowance Allocation, Collectively Evaluated	4,194	2,317
Loans and Leases Receivable, Allowance, Total	4,197	2,341	2,812	2,433
Consumer | Residential | Real estate first mortgage
Loans and Allowance for Loan Losses
Recorded Investment, Individually Evaluated	782	352
Recorded Investment, Collectively Evaluated	456,373	447,791
Loans and Leases Receivable, Gross, Total	457,155	448,143
Allowance Allocation, Collectively Evaluated	1,448	1,156
Loans and Leases Receivable, Allowance, Total	1,448	1,156	1,411	1,126
Consumer | Residential | Real estate junior lien
Loans and Allowance for Loan Losses
Recorded Investment, Individually Evaluated	266	559
Recorded Investment, Collectively Evaluated	177,107	188,296
Loans and Leases Receivable, Gross, Total	177,373	188,855
Allowance Allocation, Individually Evaluated		4
Allowance Allocation, Collectively Evaluated	2,397	801
Loans and Leases Receivable, Allowance, Total	2,397	805	902	907
Consumer | Other revolving and installment
Loans and Allowance for Loan Losses
Recorded Investment, Individually Evaluated	5	20
Recorded Investment, Collectively Evaluated	86,521	95,198
Loans and Leases Receivable, Gross, Total	86,526	95,218
Allowance Allocation, Individually Evaluated	3	20
Allowance Allocation, Collectively Evaluated	349	360
Loans and Leases Receivable, Allowance, Total	$ 352	$ 380	$ 499	$ 400

Loans and Allowance for Loan _8

Loans and Allowance for Loan Losses - Impaired loans (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Impaired
Loans with related allowance for loan losses, Recorded investment	$ 6,362	$ 4,182
Loans with related allowance for loan losses, unpaid principal	6,556	4,293
Loans with related allowance for loan losses, Related Allowance	3,138	2,538
Loans with no related allowance for loan losses, Recorded investment	1,592	2,378
Loans with no related allowance for loan losses, unpaid principal	2,515	2,843
Recorded investment	7,954	6,560
Unpaid principal balance	9,071	7,136
Commercial | Commercial and industrial
Impaired
Loans with related allowance for loan losses, Recorded investment	639	2,660
Loans with related allowance for loan losses, unpaid principal	727	2,752
Loans with related allowance for loan losses, Related Allowance	189	2,059
Loans with no related allowance for loan losses, Recorded investment	337	1,285
Loans with no related allowance for loan losses, unpaid principal	1,110	1,422
Recorded investment	976	3,945
Unpaid principal balance	1,837	4,174
Commercial | Commercial real estate
Impaired
Loans with related allowance for loan losses, Recorded investment	5,718	1,499
Loans with related allowance for loan losses, unpaid principal	5,823	1,517
Loans with related allowance for loan losses, Related Allowance	2,946	455
Loans with no related allowance for loan losses, Recorded investment	207	185
Loans with no related allowance for loan losses, unpaid principal	236	218
Recorded investment	5,925	1,684
Unpaid principal balance	6,059	1,735
Consumer | Residential | Real estate first mortgage
Impaired
Loans with no related allowance for loan losses, Recorded investment	782	352
Loans with no related allowance for loan losses, unpaid principal	797	504
Recorded investment	782	352
Unpaid principal balance	797	504
Consumer | Residential | Real estate junior lien
Impaired
Loans with related allowance for loan losses, Recorded investment		4
Loans with related allowance for loan losses, unpaid principal		4
Loans with related allowance for loan losses, Related Allowance		4
Loans with no related allowance for loan losses, Recorded investment	266	555
Loans with no related allowance for loan losses, unpaid principal	372	697
Recorded investment	266	559
Unpaid principal balance	372	701
Consumer | Other revolving and installment
Impaired
Loans with related allowance for loan losses, Recorded investment	5	19
Loans with related allowance for loan losses, unpaid principal	6	20
Loans with related allowance for loan losses, Related Allowance	3	20
Loans with no related allowance for loan losses, Recorded investment		1
Loans with no related allowance for loan losses, unpaid principal		2
Recorded investment	5	20
Unpaid principal balance	$ 6	$ 22

Loans and Allowance for Loan _9

Loans and Allowance for Loan Losses - Interest Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Impaired
Loans with related allowance for loan losses, Average recorded investment	$ 6,750	$ 4,753	$ 3,235
Loans with no related allowance for loan losses, Average recorded investment	3,217	3,072	4,334
Loans, Average recorded investment	9,967	7,825	7,569
Loans with related allowance for loan losses, Interest income	16		181
Loans with no related allowance for loan losses, Interest income	42	50	252
Loans, Interest income	58	50	433
Commercial | Commercial and industrial
Impaired
Loans with related allowance for loan losses, Average recorded investment	839	3,163	2,605
Loans with no related allowance for loan losses, Average recorded investment	2,434	1,595	1,676
Loans, Average recorded investment	3,273	4,758	4,281
Loans with related allowance for loan losses, Interest income	16		148
Loans with no related allowance for loan losses, Interest income	30	35	89
Loans, Interest income	46	35	237
Commercial | Real estate construction
Impaired
Loans with no related allowance for loan losses, Average recorded investment			65
Loans, Average recorded investment			65
Loans with no related allowance for loan losses, Interest income			3
Loans, Interest income			3
Commercial | Commercial real estate
Impaired
Loans with related allowance for loan losses, Average recorded investment	5,891	1,558	234
Loans with no related allowance for loan losses, Average recorded investment	212	223
Loans, Average recorded investment	6,103	1,781	234
Loans with related allowance for loan losses, Interest income			9
Loans with no related allowance for loan losses, Interest income	8	9
Loans, Interest income	8	9	9
Consumer | Residential | Real estate first mortgage
Impaired
Loans with no related allowance for loan losses, Average recorded investment	230	533	620
Loans, Average recorded investment	230	533	620
Loans with no related allowance for loan losses, Interest income			37
Loans, Interest income			37
Consumer | Residential | Real estate junior lien
Impaired
Loans with related allowance for loan losses, Average recorded investment		4	317
Loans with no related allowance for loan losses, Average recorded investment	338	718	1,963
Loans, Average recorded investment	338	722	2,280
Loans with related allowance for loan losses, Interest income			18
Loans with no related allowance for loan losses, Interest income	4	6	123
Loans, Interest income	4	6	141
Consumer | Other revolving and installment
Impaired
Loans with related allowance for loan losses, Average recorded investment	20	28	79
Loans with no related allowance for loan losses, Average recorded investment	3	3	10
Loans, Average recorded investment	$ 23	$ 31	89
Loans with related allowance for loan losses, Interest income			6
Loans, Interest income			$ 6

Loans and Allowance for Loan_10

Loans and Allowance for Loan Losses - Pledged (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Loans and Allowance for Loan Losses
Total loans	$ 1,721,279	$ 1,701,850
Pledged
Loans and Allowance for Loan Losses
Total loans	$ 1,200,000	$ 1,100,000

Loans and Allowance for Loan_11

Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2019loan	Mar. 31, 2018USD ($)loan	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Extending amortization period
Troubled debt restructuring
Number of loans modified as modified as a troubled debt restructuring | loan	1
Carrying value of restructured loan			$ 200
Specific reserve for loan losses allocated			$ 24
Interest Rate Below Market Reduction
Troubled debt restructuring
Number of loans modified as modified as a troubled debt restructuring | loan		1
Carrying value of pre-restructured loan		$ 1,000
Carrying value of restructured loan				$ 200

Land, Premises and Equipment,_3

Land, Premises and Equipment, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Land, Premises and Equipment, Net
Land, Premises and Equipment	$ 64,136	$ 62,989
Less accumulated depreciation	(43,507)	(41,246)
Property, Plant and Equipment, Net, Total	20,629	21,743
Depreciation expense	3,600	3,200	$ 3,200
Land
Land, Premises and Equipment, Net
Land, Premises and Equipment	4,542	4,663
Buildings and improvements
Land, Premises and Equipment, Net
Land, Premises and Equipment	25,078	25,902
Finance lease
Land, Premises and Equipment, Net
Land, Premises and Equipment	2,657	2,657
Furniture, fixtures, and equipment
Land, Premises and Equipment, Net
Land, Premises and Equipment	$ 31,859	$ 29,767

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Goodwill
Goodwill	$ 27,329	$ 27,329
Banking
Goodwill
Goodwill	20,131	20,131
Retirement and Benefit Services
Goodwill
Goodwill	$ 7,198	$ 7,198

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill
Gross Carrying Amount	$ 36,850	$ 62,960
Accumulated Amortization	(18,459)	(40,487)
Total	18,391	22,473
Decrease in Intangible asset	26,100
Decrease in Accumulated amortization	26,100
Intangible amortization expense	4,081	4,638	$ 5,623
Identifiable customer intangibles
Goodwill
Gross Carrying Amount	31,857	55,744
Accumulated Amortization	(14,287)	(34,972)
Total	17,570	20,772
Core deposit intangible assets
Goodwill
Gross Carrying Amount	4,993	7,216
Accumulated Amortization	(4,172)	(5,515)
Total	$ 821	$ 1,701

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Amortization expense for Future Years (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Other Intangible Assets
2020	$ 3,961
2021	3,266
2022	3,202
2023	3,202
2024	2,949
Thereafter	1,811
Total	$ 18,391	$ 22,473

Loan Servicing (Details)

Loan Servicing (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loans serviced for others	$ 541,900	$ 591,600
Servicing Asset at Fair Value, Amount
Balance, beginning of period	4,623	4,686	$ 4,777
Additions	342	534	745
Amortization	(987)	(669)	(822)
(Impairment)/Recovery	(133)	72	(14)
Balance, end of period	3,845	4,623	$ 4,686
Other Liabilities
Loan servicing obligations	$ 0	$ 92

Loan Servicing - Key economic a

Loan Servicing - Key economic assumptions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Loan Servicing
Fair value of servicing rights	$ 3,845	$ 4,623
Weighted average remaining term, years	20 years 1 month 6 days	20 years 9 months 18 days
Prepayment speeds	11.80%	7.80%
Discount rate	9.40%	10.50%

Leases - Lease right-of-use ass

Leases - Lease right-of-use assets and liabilities (Details) $ in Thousands	Dec. 31, 2019USD ($)
Lease Right-of-Use Assets
Operating lease right-of-use assets	$ 8,343
Finance lease right-of-use assets	$ 318
Finance Lease, Right-of-Use Asset, balance sheet location	us-gaap:PropertyPlantAndEquipmentNet
Lease right-of-use assets	$ 8,661
Operating lease liabilities	8,864
Finance lease liabilities	$ 640
Finance lease liabilities, balance sheet location	us-gaap:LongTermDebt
Lease liabilities	$ 9,504

Leases - Weighted-average remai

Leases - Weighted-average remaining lease term and average discount rate (Details)	Dec. 31, 2019
Leases
Weighted-average remaining lease term, Operating leases	6 years 2 months 12 days
Weighted-average remaining lease term, Finance leases	2 years 9 months 18 days
Weighted-average discount rate, Operating leases	3.10%
Weighted-average discount rate, Finance leases	7.80%

Leases - Lease costs and other

Leases - Lease costs and other lease information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Lease costs
Operating lease cost	$ 2,378
Variable lease cost	819
Short-term lease cost	535
Finance lease cost
Interest on lease liabilities	58
Amortization of right-of-use assets	116
Sublease Income	(270)
Net lease cost	3,636
Operating cash flows from operating leases	$ 2,376

Leases - Future minimum payment

Leases - Future minimum payments for finance and operating leases (Details) $ in Thousands	Dec. 31, 2019USD ($)
Finance leases
2020	$ 251
2021	251
2022	209
Total future minimum lease payments	711
Amounts representing interest	(71)
Total operating lease liabilities	640
Operating leases
2020	2,197
2021	1,560
2022	1,563
2023	1,488
2024	898
Thereafter	2,272
Total future minimum lease payments	9,978
Amounts representing interest	(1,114)
Total operating lease liabilities	$ 8,864

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Other Assets
Federal Reserve Bank stock	$ 2,675	$ 2,675
Foreclosed assets	8	204
Prepaid expenses	5,214	5,163
Investments in partnerships	14	75
Trust fees accrued/receivable	12,852	11,724
Income tax refund receivable	374	2,379
Federal Home Loan Bank stock	3,080	6,875
Other assets	5,751	3,592
Total	$ 29,968	$ 32,687

Deposits (Details)

Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deposits.
Noninterest-bearing	$ 577,704	$ 550,640
Interest-bearing demand	458,689	401,078
Savings accounts	55,777	53,971
Money market savings	683,064	598,820
Time deposits	196,082	170,587
Total interest-bearing	1,393,612	1,224,456
Total deposits	1,971,316	1,775,096
Deposit overdrafts	$ 315	$ 77

Deposits - Scheduled maturities

Deposits - Scheduled maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deposits.
Certificates of deposit in excess of $250,000	$ 42,200	$ 27,500
2020	158,834
2021	17,504
2022	5,770
2023	4,669
2024	2,551
Thereafter	6,754
Total	$ 196,082	$ 170,587

Short-Term Borrowings (Details)

Short-Term Borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Short-term borrowings
Balance as of end of period		$ 93,460
Securities Sold under Agreements to Repurchase
Short-term borrowings
Average daily balance			$ 28
During period			0.54%
Federal Funds Purchased
Short-term borrowings
Balance as of end of period		93,460
Average daily balance	$ 61,709	86,768	$ 33,348
Maximum month-end balance	$ 139,605	$ 112,260	$ 131,260
During period	2.54%	2.18%	1.33%
End of period		2.63%
Federal Home Loan Bank Advances
Short-term borrowings
Balance as of end of period			$ 30,000
Average daily balance	$ 9,712	$ 82	39,069
Maximum month-end balance	$ 135,000		$ 120,000
During period	2.44%	1.42%	1.28%
End of period			1.42%

Short-Term Borrowings - Narrati

Short-Term Borrowings - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Federal Funds Purchased
Short-term borrowings
Unsecured maximum borrowing capacity	$ 87	$ 87
Federal Home Loan Bank Advances
Short-term borrowings
Outstanding credit facility	552.2	$ 424.1
Unsecured Line Of Credit With Bank of North Dakota
Short-term borrowings
Unsecured maximum borrowing capacity	$ 15

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Long-Term Debt
Face Value	$ 63,010	$ 63,010
Carrying Amount	58,769	58,824
Subordinated notes payable
Long-Term Debt
Face Value	50,000	50,000
Carrying Amount	$ 49,625	$ 49,562
Fixed interest rate	5.75%	5.75%
Junior subordinated debenture (Trust I)
Long-Term Debt
Face Value	$ 4,124	$ 4,124
Carrying Amount	$ 3,402	$ 3,357
Period End Interest Rate	5.05%	5.92%
Junior subordinated debenture (Trust I) | Three - month LIBOR
Long-Term Debt
Interest Rate	3.10%	3.10%
Junior subordinated debenture (Trust II)
Long-Term Debt
Face Value	$ 6,186	$ 6,186
Carrying Amount	$ 5,102	$ 5,035
Period End Interest Rate	3.69%	4.59%
Junior subordinated debenture (Trust II) | Three - month LIBOR
Long-Term Debt
Interest Rate	1.80%	1.80%
Finance lease liability
Long-Term Debt
Face Value	$ 2,700
Carrying Amount	$ 640
Fixed interest rate	7.81%
Obligations under capital lease
Long-Term Debt
Face Value		$ 2,700
Carrying Amount		$ 870
Fixed interest rate		7.81%

True-Up Liability (Details)

True-Up Liability (Details) - USD ($) $ in Millions	Oct. 24, 2018	Dec. 31, 2017
True-Up Liability
Value of True Up Liability		$ 3.2
FDIC
True-Up Liability
Amount agreed to pay to FDIC	$ 3

Financial Instruments with Of_3

Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financial Instruments with Off Balance Sheet Risk
Amount of credit risk	$ 594,881	$ 538,742
Commitments to extend credit
Financial Instruments with Off Balance Sheet Risk
Amount of credit risk	586,365	529,890
Standby letters of credit
Financial Instruments with Off Balance Sheet Risk
Amount of credit risk	$ 8,516	$ 8,852

Financial Instruments with Off

Financial Instruments with Off Balance Sheet Risk - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Letter of credit with FHLB
Financial Instruments with Off Balance Sheet Risk
Outstanding letters of credit	$ 150	$ 150
Letter of credit with Bank of North Dakota
Financial Instruments with Off Balance Sheet Risk
Collateralized loans	242,000	260,600
Outstanding letters of credit	$ 20,000	$ 0

Share-Based Compensation - Plan

Share-Based Compensation - Plan Information (Details) - shares	12 Months Ended
	Dec. 31, 2019	May 06, 2019	May 31, 2009
2019 Equity Incentive Plan
Share-Based Compensation
Awards authorized		1,100,000
Awards issued	0
2009 Plan
Share-Based Compensation
Awards authorized			1,350,000

Share-Based Compensation Plan -

Share-Based Compensation Plan - Activity in stock plan (Details) - 2009 Plan - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Restricted Stock Awards and Units
Restricted Stock Awards and Units
Outstanding at beginning of period	337,014	335,092
Granted	70,617	86,371
Vested	(53,994)	(79,753)
Forfeited or cancelled	(6,426)	(4,696)
Outstanding at end of period	347,211	337,014	335,092
Weighted Average Grant Date Fair Value
Outstanding at beginning of period	$ 18.36	$ 15.36
Granted	19.87	22.58
Vested	18.76	10.43
Forfeited or cancelled	17.63	21.24
Outstanding at end of period	$ 18.64	$ 18.36	$ 15.36
Additional disclosures
Unrecognized compensation cost	$ 3.3	$ 3.2
Weighted average period	3 years 10 months 10 days	4 years 4 months 6 days
Compensation expense	$ 1.5	$ 1.2	$ 0.7
Restricted stock awards
Restricted Stock Awards and Units
Outstanding at beginning of period	295,972
Outstanding at end of period	262,734	295,972
Restricted stock units
Restricted Stock Awards and Units
Outstanding at beginning of period	41,042
Outstanding at end of period	84,477	41,042

Share-Based Compensation Plan_2

Share-Based Compensation Plan - Retainer Plan (Details) - Retainer Plan - Restricted stock awards - Non Employee Director - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	May 31, 2009
Share-Based Compensation
Available for future grant, at beginning	25,825	35,842
Retainer shares awarded	(13,144)	(10,017)
Plan Expiration	(12,681)
Available for future grant, at ending	0	25,825	35,842
Outstanding at beginning of period	154,175	144,158
Retainer shares awarded	13,144	10,017
Plan Expiration	12,681
Outstanding at end of period	167,319	154,175	144,158
Additional disclosures
Awards authorized				180,000
Compensation expense	$ 0.3	$ 0.3	$ 0.3

Employee Benefits - Deferral Pe

Employee Benefits - Deferral Percentages (Details)	12 Months Ended
	Dec. 31, 2019plan
Employee Benefits
Number of employee retirement plans	2
401K Plan
Employee Benefits
Company contribution percentage of amounts deferred by employee's up to 3% of compensation	100.00%
Company contribution percentage of amounts deferred by employee's between 3%-6% of compensation	50.00%
401K Plan | Minimum
Employee Benefits
Percentage of eligible compensation	3.00%
401K Plan | Maximum
Employee Benefits
Percentage of eligible compensation	6.00%

Employee Benefits - Retirement

Employee Benefits - Retirement plan contribution (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Employee Benefits
Retirement plan contributions	$ 4,435	$ 4,067	$ 4,001
Total ESOP shares outstanding	1,307,439	1,334,372	1,393,395
ESOP repurchase obligation		$ 34,000
Salary Reduction Plan
Employee Benefits
Retirement plan contributions	$ 2,599	2,402	$ 2,317
ESOP
Employee Benefits
Retirement plan contributions	$ 1,836	$ 1,665	$ 1,684

Noninterest Income (Details)

Noninterest Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Noninterest Income
Retirement and benefits									$ 63,811	$ 63,316	$ 62,390
Wealth management									15,502	14,900	13,953
Mortgage banking									25,805	17,630	19,748
Service charges on deposit accounts									1,772	1,808	1,854
Net gains (losses) on investment securities									357	85	(13)
Interchange fees									1,972	2,005	1,997
Bank-owned life insurance income									803	804	820
Misc. transactional fees									1,236	1,106	1,070
Other Noninterest Income									2,936	1,096	1,226
Total noninterest income	$ 29,556	$ 29,580	$ 29,984	$ 25,074	$ 26,141	$ 26,258	$ 26,094	$ 24,256	$ 114,194	$ 102,749	$ 103,045

Noninterest Income - Contract C

Noninterest Income - Contract Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2018
Recent Accounting Pronouncements
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract	true
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606
Recent Accounting Pronouncements
Capitalized contract acquisition costs		$ 0

Income Taxes - Income tax expen

Income Taxes - Income tax expense (benefit) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Federal
Current									$ 7,091	$ 5,801	$ 6,646
Deferred									267	(49)	2,975
Federal income tax									7,358	5,752	9,621
State
Current									1,926	1,265	949
Deferred									72	155	734
State income tax									1,998	1,420	1,683
Deferred tax impairment and statutory rate change											6,210
Total income tax expense	$ 2,131	$ 2,332	$ 2,869	$ 2,024	$ 1,920	$ 1,951	$ 1,567	$ 1,734	$ 9,356	$ 7,172	$ 17,514

Income Taxes - Deferred tax ass

Income Taxes - Deferred tax assets and deferred tax liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred Tax Assets
Allowance for loan losses	$ 5,893	$ 5,566
Employee compensation and benefit accruals	2,542	2,167
Expense accruals	935	740
Identifiable intangible amortization	3,369	3,351
Deferred loan fees	266	462
Net operating loss carry forwards	236	266
Nonaccrual loan interest		143
Unrealized gain on available-for-sale investment securities		1,207
Other	341	533
Total deferred tax assets from temporary differences	13,582	14,435
Deferred Tax Liabilities
Accumulated depreciation	1,431	1,079
Goodwill and intangible amortization	1,835	1,443
Servicing assets	965	1,137
Prepaid expenses	804	644
Unrealized loss on available-for-sale investment securities	649
Other	7	47
Total deferred tax liabilities from temporary differences	5,691	4,350
Net Deferred Tax Assets	$ 7,891	$ 10,085

Income Taxes - Reconciliation b

Income Taxes - Reconciliation between applicable income taxes and statutory federal tax rate (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Tax amount
Taxes at statutory federal income tax rate									$ 8,168	$ 6,938	$ 11,380
Tax effect of tax exempt income									(442)	(365)	(562)
State income taxes, net of federal benefits									1,618	1,399	1,414
Change in federal statutory tax rate											4,818
Deferred tax impairment											1,392
Nondeductible items and other									12	(800)	(928)
Total income tax expense	$ 2,131	$ 2,332	$ 2,869	$ 2,024	$ 1,920	$ 1,951	$ 1,567	$ 1,734	$ 9,356	$ 7,172	$ 17,514
Percentage of pretax income
Taxes at statutory federal income tax rate (as percentage)									21.00%	21.00%	35.00%
Tax effect of tax exempt income (as percentage)									(1.10%)	(1.10%)	(1.70%)
State income taxes, net of federal benefits (as percentage)									4.20%	4.20%	4.30%
Change in federal statutory tax rate (as percentage)											14.10%
Deferred tax impairment (as percentage)											4.30%
Nondeductible items and other (as percentage)										(2.40%)	(2.90%)
Applicable income taxes (as percentage)									24.10%	21.70%	53.10%

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Corporate income tax rate		21.00%	21.00%	35.00%
Deferred tax asset Impairment expense	$ 4.8
Unrecognized tax benefits impairment expenses				$ 1.4

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019USD ($)item	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2019USD ($)segmentitem	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Segment Reporting
Number of operating segments | segment									4
Number of Banking offices | item	15								15
Number of satellite offices | item									13
Key metrics related to segments
Net interest income	$ 18,459	$ 18,681	$ 18,291	$ 19,120	$ 19,253	$ 18,929	$ 18,900	$ 18,142	$ 74,551	$ 75,224	$ 67,670
Provision for loan losses	1,797	1,498	1,797	2,220	1,530	1,530	4,020	1,530	7,312	8,610	3,280
Noninterest income	29,556	29,580	29,984	25,074	26,141	26,258	26,094	24,256	114,194	102,749	103,045
Noninterest expense	36,435	37,327	35,261	33,514	35,911	34,336	33,808	32,270	142,537	136,325	134,920
Net income before taxes	9,783	$ 9,436	$ 11,217	$ 8,460	7,953	$ 9,321	$ 7,166	$ 8,598	38,896	33,038	32,515
Total assets	2,356,878				2,179,070				2,356,878	2,179,070	2,136,081
Corporate Administration
Key metrics related to segments
Net interest income									(3,610)	(3,591)	(3,504)
Noninterest income									2,106	(18)	(226)
Noninterest expense									34,894	33,283	31,859
Net income before taxes									(36,398)	(36,892)	(35,589)
Total assets	10,412				(506)				10,412	(506)	(1,437)
Banking | Operating Segments
Key metrics related to segments
Net interest income									76,916	77,919	70,377
Provision for loan losses									7,312	8,599	3,280
Noninterest income									6,970	6,921	7,180
Noninterest expense									43,171	42,605	35,996
Net income before taxes									33,403	33,636	38,281
Total assets	2,259,614				2,120,249				2,259,614	2,120,249	2,078,013
Retirement and Benefit Services | Operating Segments
Key metrics related to segments
Noninterest income									63,811	63,316	62,390
Noninterest expense									35,407	36,414	41,977
Net income before taxes									28,404	26,902	20,413
Total assets	39,021				41,492				39,021	41,492	38,118
Wealth Management | Operating Segments
Key metrics related to segments
Net interest income										62	57
Noninterest income									15,502	14,900	13,953
Noninterest expense									7,188	6,824	7,640
Net income before taxes									8,314	8,138	6,370
Total assets	128				3,235				128	3,235	2,718
Mortgage | Operating Segments
Key metrics related to segments
Net interest income									1,245	834	740
Provision for loan losses										11
Noninterest income									25,805	17,630	19,748
Noninterest expense									21,877	17,199	17,448
Net income before taxes									5,173	1,254	3,040
Total assets	$ 47,703				$ 14,600				$ 47,703	$ 14,600	$ 18,669

Earnings Per Share - Two-class

Earnings Per Share - Two-class method (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share
Net Income	$ 7,652	$ 7,104	$ 8,348	$ 6,436	$ 6,033	$ 7,370	$ 5,599	$ 6,864	$ 29,540	$ 25,866	$ 15,001
Dividends and undistributed earnings allocated to participating securities									647
Net income available to common shareholders									$ 28,893
Weighted-average common shares outstanding for basic earnings per share									14,736	13,763	13,653
Dilutive effect of stock-based awards									357	300	354
Weighted-average common shares outstanding for diluted earnings per share									15,093	14,063	14,007
Earnings per common share:
Basic earnings per common share	$ 0.44	$ 0.49	$ 0.60	$ 0.47	$ 0.44	$ 0.53	$ 0.41	$ 0.50	$ 1.96	$ 1.88	$ 1.10
Diluted earnings per common share	$ 0.43	$ 0.48	$ 0.59	$ 0.46	$ 0.43	$ 0.52	$ 0.40	$ 0.49	$ 1.91	$ 1.84	$ 1.07

Earnings Per Share - Treasury s

Earnings Per Share - Treasury stock method (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share
Net income attributable to common shareholders	$ 7,652	$ 7,104	$ 8,348	$ 6,436	$ 6,033	$ 7,370	$ 5,599	$ 6,864	$ 29,540	$ 25,866	$ 15,001
Weighted-average common shares outstanding for basic earnings per share									14,736	13,763	13,653
Basic earnings per common share	$ 0.44	$ 0.49	$ 0.60	$ 0.47	$ 0.44	$ 0.53	$ 0.41	$ 0.50	$ 1.96	$ 1.88	$ 1.10
Dilutive effect of stock-based awards									357	300	354
Weighted-average common shares outstanding for diluted earnings per share									15,093	14,063	14,007
Diluted earnings per common share	$ 0.43	$ 0.48	$ 0.59	$ 0.46	$ 0.43	$ 0.52	$ 0.40	$ 0.49	$ 1.91	$ 1.84	$ 1.07

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Related Party Transactions
Beginning Balance	$ 12,611	$ 19,905
New Loans and Advances	498	837
Repayments	(588)	(3,346)
Changes to Related Parties	(12,214)	(4,785)
Ending Balance	307	12,611
Deposits from related parties	$ 500	$ 5,600

Derivative Instruments (Details

Derivative Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Derivative Instruments
Collateral held by third parties	$ 900	$ 0
Not designated as hedging
Derivative Instruments
Fair Value, Derivative Assets	1,621	12
Fair Value, Derivative Liabilities	109	7
Notional Amount, Derivative Assets	58,499	33,858
Notional Amount, Derivative Liabilities	68,500	2,956
Not designated as hedging | Interest rate lock commitments | Other assets
Derivative Instruments
Fair Value, Derivative Assets	1,228	12
Notional Amount, Derivative Assets	45,715	33,858
Not designated as hedging | Forward loan sales commitments | Other assets
Derivative Instruments
Fair Value, Derivative Assets	393
Notional Amount, Derivative Assets	12,784
Not designated as hedging | Forward loan sales commitments | Accrued expenses and other liabilities
Derivative Instruments
Fair Value, Derivative Liabilities		7
Notional Amount, Derivative Liabilities		$ 2,956
Not designated as hedging | TBA mortgage backed securities | Accrued expenses and other liabilities
Derivative Instruments
Fair Value, Derivative Liabilities	109
Notional Amount, Derivative Liabilities	$ 68,500

Derivative Instruments - Gain (

Derivative Instruments - Gain (loss) recognized on derivatives instruments (Details) - Not designated as hedging - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Gain (loss) recognized on derivative instruments
Gain (loss) recognized on derivatives instruments	$ 1,507	$ (2)	$ (26)
Interest rate lock commitments | Mortgage banking
Gain (loss) recognized on derivative instruments
Gain (loss) recognized on derivatives instruments	1,216	14	70
Forward loan sales commitments | Mortgage banking
Gain (loss) recognized on derivative instruments
Gain (loss) recognized on derivatives instruments	400	$ (16)	$ (96)
TBA mortgage backed securities | Mortgage banking
Gain (loss) recognized on derivative instruments
Gain (loss) recognized on derivatives instruments	$ (109)

Regulatory Matters (Details)

Regulatory Matters (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Common equity tier 1 capital to risk weighted assets
Actual	$ 239,672	$ 151,745
Requirements for Capital Adequacy Purposes	$ 86,452
Actual	12.48%	8.43%
Requirements	4.50%
Tier 1 capital to risk weighted assets
Actual	$ 247,866	$ 159,774
Requirements for Capital Adequacy Purposes	$ 115,270
Actual	12.90%	8.87%
Requirements	6.00%
Total capital to risk weighted assets
Actual	$ 321,415	$ 231,510
Requirements for Capital Adequacy Purposes	$ 153,693
Actual	16.73%	12.86%
Requirements	8.00%
Tier 1 capital to average assets
Actual	$ 247,866	$ 159,774
Requirements for Capital Adequacy Purposes	$ 91,504
Actual	11.05%	7.51%
Requirements	4.00%
Bank
Common equity tier 1 capital to risk weighted assets
Actual	$ 228,512	$ 204,680
Requirements for Capital Adequacy Purposes	86,362	80,866
Minimum to be Well Capitalized Under Prompt Corrective Action	$ 124,745	$ 116,806
Actual	11.91%	11.39%
Requirements	4.50%	4.50%
Minimum to be Well Capitalized Under Prompt Corrective Action	6.50%	6.50%
Tier 1 capital to risk weighted assets
Actual	$ 228,512	$ 204,680
Requirements for Capital Adequacy Purposes	115,149	107,821
Minimum to be Well Capitalized Under Prompt Corrective Action	$ 153,532	$ 143,761
Actual	11.91%	11.39%
Requirements	6.00%	6.00%
Minimum to be Well Capitalized Under Prompt Corrective Action	8.00%	8.00%
Total capital to risk weighted assets
Actual	$ 252,436	$ 226,854
Requirements for Capital Adequacy Purposes	153,532	143,806
Minimum to be Well Capitalized Under Prompt Corrective Action	$ 191,915	$ 179,758
Actual	13.15%	12.62%
Requirements	8.00%	8.00%
Minimum to be Well Capitalized Under Prompt Corrective Action	10.00%	10.00%
Tier 1 capital to average assets
Actual	$ 228,512	$ 204,680
Requirements for Capital Adequacy Purposes	89,615	85,018
Minimum to be Well Capitalized Under Prompt Corrective Action	$ 112,018	$ 106,272
Actual	10.20%	9.63%
Requirements	4.00%	4.00%
Minimum to be Well Capitalized Under Prompt Corrective Action	5.00%	5.00%

Fair Value of Assets and Liab_3

Fair Value of Assets and Liabilities - Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair value, assets and liabilities measured on recurring and non recurring basis
Trading securities		$ 1,539
Available-for-sale	$ 310,350	250,174
Equity securities	2,808	3,165
U.S. treasury and government agencies
Fair value, assets and liabilities measured on recurring and non recurring basis
Available-for-sale	21,240	19,142
Mortgage backed securities - Residential Agency
Fair value, assets and liabilities measured on recurring and non recurring basis
Available-for-sale	182,538	126,998
Mortgage backed securities - Commercial
Fair value, assets and liabilities measured on recurring and non recurring basis
Available-for-sale	30,685	28,767
Asset backed securities
Fair value, assets and liabilities measured on recurring and non recurring basis
Available-for-sale	144	399
Corporate bonds
Fair value, assets and liabilities measured on recurring and non recurring basis
Available-for-sale	7,095	8,481
Recurring
Fair value, assets and liabilities measured on recurring and non recurring basis
Equity securities	2,808	3,165
Total available-for-sale and equity securities	313,158	253,339
Derivates assets	1,621	12
Derivative liabilities	109	7
Recurring | U.S. treasury and government agencies
Fair value, assets and liabilities measured on recurring and non recurring basis
Trading securities		1,539
Available-for-sale	21,240	19,142
Recurring | Obligations of state and political agencies
Fair value, assets and liabilities measured on recurring and non recurring basis
Available-for-sale	68,648	66,387
Recurring | Mortgage backed securities - Residential Agency
Fair value, assets and liabilities measured on recurring and non recurring basis
Available-for-sale	182,538	126,998
Recurring | Mortgage backed securities - Commercial
Fair value, assets and liabilities measured on recurring and non recurring basis
Available-for-sale	30,685	28,767
Recurring | Asset backed securities
Fair value, assets and liabilities measured on recurring and non recurring basis
Available-for-sale	144	399
Recurring | Corporate bonds
Fair value, assets and liabilities measured on recurring and non recurring basis
Available-for-sale	7,095	8,481
Recurring | Level 1
Fair value, assets and liabilities measured on recurring and non recurring basis
Equity securities	2,808	3,165
Total available-for-sale and equity securities	2,808	3,165
Recurring | Level 2
Fair value, assets and liabilities measured on recurring and non recurring basis
Total available-for-sale and equity securities	310,350	250,174
Derivates assets	1,621	12
Derivative liabilities	109	7
Recurring | Level 2 | U.S. treasury and government agencies
Fair value, assets and liabilities measured on recurring and non recurring basis
Trading securities		1,539
Available-for-sale	21,240	19,142
Recurring | Level 2 | Obligations of state and political agencies
Fair value, assets and liabilities measured on recurring and non recurring basis
Available-for-sale	68,648	66,387
Recurring | Level 2 | Mortgage backed securities - Residential Agency
Fair value, assets and liabilities measured on recurring and non recurring basis
Available-for-sale	182,538	126,998
Recurring | Level 2 | Mortgage backed securities - Commercial
Fair value, assets and liabilities measured on recurring and non recurring basis
Available-for-sale	30,685	28,767
Recurring | Level 2 | Asset backed securities
Fair value, assets and liabilities measured on recurring and non recurring basis
Available-for-sale	144	399
Recurring | Level 2 | Corporate bonds
Fair value, assets and liabilities measured on recurring and non recurring basis
Available-for-sale	$ 7,095	$ 8,481

Fair Value of Assets and Liab_4

Fair Value of Assets and Liabilities - Nonrecurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Level 3 | Loans held for branch sale
Fair value, assets and liabilities measured on recurring and non recurring basis
Loans held for sale		$ 32,031
Non recurring
Fair value, assets and liabilities measured on recurring and non recurring basis
Impaired loans	$ 4,816	4,022
Foreclosed assets	8	84
Servicing rights	3,845	4,623
Non recurring | Loans held for sale
Fair value, assets and liabilities measured on recurring and non recurring basis
Loans held for sale	46,846	14,486
Non recurring | Loans held for branch sale
Fair value, assets and liabilities measured on recurring and non recurring basis
Loans held for sale		32,031
Non recurring | Impaired loans
Fair value, assets and liabilities measured on recurring and non recurring basis
Net impairment	3,138	2,538
Non recurring | Foreclosed assets
Fair value, assets and liabilities measured on recurring and non recurring basis
Net impairment		245
Non recurring | Level 2 | Loans held for sale
Fair value, assets and liabilities measured on recurring and non recurring basis
Loans held for sale	46,846	14,486
Non recurring | Level 3
Fair value, assets and liabilities measured on recurring and non recurring basis
Impaired loans	4,816	4,022
Foreclosed assets	8	84
Servicing rights	$ 3,845	4,623
Non recurring | Level 3 | Loans held for branch sale
Fair value, assets and liabilities measured on recurring and non recurring basis
Loans held for sale		$ 32,031

Fair Value of Assets and Liab_5

Fair Value of Assets and Liabilities - Loans Held for Sale (Details) $ in Thousands	Jan. 15, 2019item	Dec. 31, 2018USD ($)
Fair Value of Assets and Liabilities
Number of branches whose loans are to be sold | item	2
Loans held for branch sale | $		$ 32,031

Fair Value of Assets and Liab_6

Fair Value of Assets and Liabilities - Valuation Technique (Details) - Level 3	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Loans held for branch sale
Valuation techniques and significant unobservable inputs
Loans held for sale		$ 32,031,000
Loans Held-for-sale, Valuation Technique [Extensible List]		us-gaap:ValuationTechniqueDiscountedCashFlowMember
Loans Held-for-sale, Measurement Input [Extensible List]		us-gaap:MeasurementInputCostToSellMember
Impaired loans | Appraisal value | Property specific adjustment
Valuation techniques and significant unobservable inputs
Impaired loans	$ 4,816,000	$ 4,022,000
Foreclosed assets | Appraisal value | Property specific adjustment
Valuation techniques and significant unobservable inputs
Foreclosed assets	8,000	84,000
Servicing rights
Valuation techniques and significant unobservable inputs
Servicing rights	$ 3,845,000	$ 4,623,000
Servicing Asset, Valuation Technique [Extensible List]	us-gaap:ValuationTechniqueDiscountedCashFlowMember	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Servicing rights | Prepayment speed assumptions | Minimum
Valuation techniques and significant unobservable inputs
Servicing Asset, Measurement Input	123	104
Servicing rights | Prepayment speed assumptions | Maximum
Valuation techniques and significant unobservable inputs
Servicing Asset, Measurement Input	267	211
Servicing rights | Prepayment speed assumptions | Weighted average
Valuation techniques and significant unobservable inputs
Servicing Asset, Measurement Input	194	130
Servicing rights | Discount rate
Valuation techniques and significant unobservable inputs
Servicing Asset, Measurement Input	0.094	0.105
Servicing rights | Discount rate | Weighted average
Valuation techniques and significant unobservable inputs
Servicing Asset, Measurement Input	0.094	0.105

Fair Value of Assets and Liab_7

Fair Value of Assets and Liabilities - Deposits held for sale (Details) $ in Thousands	Jan. 15, 2019item	Dec. 31, 2018USD ($)
Fair Value of Assets and Liabilities
Number of branches whose deposits are to be sold | item	2
Deposits held for sale | $		$ 24,197

Fair Value of Assets and Liab_8

Fair Value of Assets and Liabilities - Off-Balance Sheet Credit-Related Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Carrying amount
Financial Assets
Cash and cash equivalents	$ 144,006	$ 40,651
Loans	1,697,355	1,679,676
Accrued interest receivable	7,551	7,645
Bank-owned life insurance	31,566	30,763
Financial Liabilities
Noninterest-bearing transaction	577,704	550,640
Interest-bearing transaction	1,197,530	1,053,869
Time deposits	196,082	170,587
Deposits held for sale		24,197
Short-term borrowings		93,460
Long-term debt	58,769	58,824
Accrued interest payable	1,038	1,879
Estimated fair value
Financial Assets
Cash and cash equivalents	144,006	40,651
Loans	1,693,824	1,663,401
Accrued interest receivable	7,551	7,645
Bank-owned life insurance	31,566	30,763
Financial Liabilities
Noninterest-bearing transaction	577,704	550,640
Interest-bearing transaction	1,197,530	1,053,869
Time deposits	196,182	172,616
Deposits held for sale		22,019
Short-term borrowings		93,460
Long-term debt	58,239	59,988
Accrued interest payable	1,038	1,879
Level 1 | Estimated fair value
Financial Assets
Cash and cash equivalents	144,006	40,651
Accrued interest receivable	7,551	7,645
Financial Liabilities
Short-term borrowings		93,460
Accrued interest payable	1,038	1,879
Level 2 | Estimated fair value
Financial Assets
Bank-owned life insurance	31,566	30,763
Financial Liabilities
Noninterest-bearing transaction	577,704	550,640
Interest-bearing transaction	1,197,530	1,053,869
Long-term debt	58,239	59,988
Level 3 | Estimated fair value
Financial Assets
Loans	1,693,824	1,663,401
Financial Liabilities
Time deposits	$ 196,182	172,616
Deposits held for sale		$ 22,019

Parent Company Only Financial_3

Parent Company Only Financial Statements - Parent Company Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 144,006	$ 40,651
Land, premises and equipment, net	20,629	21,743
Deferred income taxes, net	7,891	10,085
Other assets	29,968	32,687
Total assets	2,356,878	2,179,070	$ 2,136,081
Liabilities and Stockholders’ Equity
Long-term debt	58,769	58,824
Accrued expenses and other liabilities	32,201	30,539
Total liabilities	2,071,150	1,982,116
Commitments and contingent liabilities ESOP-owned shares		34,494
Stockholders’ equity	285,728	196,954
Less ESOP-owned shares		(34,494)
Total stockholders’ equity net ESOP-owned shares	285,728	162,460	$ 148,103	$ 139,216
Total liabilities and stockholders’ equity	2,356,878	2,179,070
Parent Company
Assets
Cash and cash equivalents	73,647	8,207
Land, premises and equipment, net	318	433
Investment in subsidiaries	274,878	250,252
Deferred income taxes, net	998	933
Other assets	1,034	1,538
Total assets	350,875	261,363
Liabilities and Stockholders’ Equity
Long-term debt	58,769	58,824
Accrued expenses and other liabilities	6,378	5,585
Total liabilities	65,147	64,409
Commitments and contingent liabilities ESOP-owned shares		34,494
Stockholders’ equity	285,728	196,954
Less ESOP-owned shares		(34,494)
Total stockholders’ equity net ESOP-owned shares	285,728	162,460
Total liabilities and stockholders’ equity	$ 350,875	$ 261,363

Parent Company Only Financial_4

Parent Company Only Financial Statements - Parent Company Condensed Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Total interest income	$ 22,887	$ 23,625	$ 23,478	$ 23,310	$ 23,231	$ 22,197	$ 21,816	$ 20,458	$ 93,300	$ 87,702	$ 75,637
Expenses	4,428	4,944	5,187	4,190	3,978	3,268	2,916	2,316	18,749	12,478	7,967
Income before income taxes	9,783	9,436	11,217	8,460	7,953	9,321	7,166	8,598	38,896	33,038	32,515
Income tax benefit	(2,131)	(2,332)	(2,869)	(2,024)	(1,920)	(1,951)	(1,567)	(1,734)	(9,356)	(7,172)	(17,514)
Net income	$ 7,652	$ 7,104	$ 8,348	$ 6,436	$ 6,033	$ 7,370	$ 5,599	$ 6,864	29,540	25,866	15,001
Parent Company
Dividends from subsidiaries									15,000	11,470	7,845
Other income									15	14	16
Total interest income									15,015	11,484	7,861
Expenses									5,999	5,964	5,038
Income before equity in undistributed income									9,016	5,520	2,823
Equity in undistributed income of subsidiaries									19,089	18,852	10,755
Income before income taxes									28,105	24,372	13,578
Income tax benefit									1,435	1,494	1,423
Net income									$ 29,540	$ 25,866	$ 15,001

Parent Company Only Financial_5

Parent Company Only Financial Statements - Parent Company Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating Activities
Net income	$ 29,540	$ 25,866	$ 15,001
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	8,768	8,729	9,856
Stock-based compensation cost	1,750	1,847	938
Net cash provided (used) by operating activities	19,248	53,553	47,890
Investing Activities
Net cash provided (used) by investing activities	(65,594)	(154,708)	(205,093)
Financing Activities
Repurchase of common stock	(1,948)	(356)	(294)
Proceeds from the issuance of common stock in initial public offering net of issuance costs	62,804
Net cash provided (used) by financing activities	149,701	19,808	71,834
Net change in cash and cash equivalents	103,355	(81,347)	(85,369)
Cash and cash equivalents at beginning of period	40,651	121,998	207,367
Cash and cash equivalents at end of period	144,006	40,651	121,998
Parent Company
Operating Activities
Net income	29,540	25,866	15,001
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed income of subsidiaries	(19,089)	(18,852)	(10,755)
Depreciation and amortization	115	116	116
Stock-based compensation cost	251	370	315
Other, net	2,676	1,314	4,904
Net cash provided (used) by operating activities	13,493	8,814	9,581
Financing Activities
Cash dividends paid on common stock	(8,909)	(7,456)	(6,729)
Repurchase of common stock	(1,948)	(356)	(294)
Proceeds from the issuance of common stock in initial public offering net of issuance costs	62,804
Net cash provided (used) by financing activities	51,947	(7,812)	(7,023)
Net change in cash and cash equivalents	65,440	1,002	2,558
Cash and cash equivalents at beginning of period	8,207	7,205	4,647
Cash and cash equivalents at end of period	$ 73,647	$ 8,207	$ 7,205

Quarterly Condensed Financial_3

Quarterly Condensed Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Condensed Financial Information (Unaudited)
Interest income	$ 22,887	$ 23,625	$ 23,478	$ 23,310	$ 23,231	$ 22,197	$ 21,816	$ 20,458	$ 93,300	$ 87,702	$ 75,637
Interest expense	4,428	4,944	5,187	4,190	3,978	3,268	2,916	2,316	18,749	12,478	7,967
Net interest income	18,459	18,681	18,291	19,120	19,253	18,929	18,900	18,142	74,551	75,224	67,670
Provision for loan losses	1,797	1,498	1,797	2,220	1,530	1,530	4,020	1,530	7,312	8,610	3,280
Net interest income after provision for loan losses	16,662	17,183	16,494	16,900	17,723	17,399	14,880	16,612	67,239	66,614	64,390
Noninterest income	29,556	29,580	29,984	25,074	26,141	26,258	26,094	24,256	114,194	102,749	103,045
Noninterest Expense	36,435	37,327	35,261	33,514	35,911	34,336	33,808	32,270	142,537	136,325	134,920
Income before income taxes	9,783	9,436	11,217	8,460	7,953	9,321	7,166	8,598	38,896	33,038	32,515
Income tax expense	2,131	2,332	2,869	2,024	1,920	1,951	1,567	1,734	9,356	7,172	17,514
Net income	$ 7,652	$ 7,104	$ 8,348	$ 6,436	$ 6,033	$ 7,370	$ 5,599	$ 6,864	$ 29,540	$ 25,866	$ 15,001
Basic earnings per common share	$ 0.44	$ 0.49	$ 0.60	$ 0.47	$ 0.44	$ 0.53	$ 0.41	$ 0.50	$ 1.96	$ 1.88	$ 1.10
Diluted earnings per common share	$ 0.43	$ 0.48	$ 0.59	$ 0.46	$ 0.43	$ 0.52	$ 0.40	$ 0.49	$ 1.91	$ 1.84	$ 1.07

Branch Sale (Details)

Branch Sale (Details) - Disposed of by Sale - Branch Offices in Duluth, MN $ in Millions	Apr. 26, 2019USD ($)
Branch Sale
Loans and Leases Receivable, Net Amount	$ 28.3
Deposits	19.4
Pre-tax gain on sale of branch	$ 1.5