Alerus Financial (ALRS) 10-Q 5 Aug 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2021	Jul. 31, 2021
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-39036
Entity Registrant Name	ALERUS FINANCIAL CORPORATION
Entity Incorporation, State	DE
Entity Tax Identification Number	45-0375407
Entity Address, Address Line One	401 Demers Avenue
Entity Address, City or Town	Grand Forks
Entity Address, State or Province	ND
Entity Address, Postal Zip Code	58201
City Area Code	701
Local Phone Number	795-3200
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	ALRS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,202,863
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000903419
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Assets
Cash and cash equivalents	$ 315,430	$ 172,962
Investment securities, Available-for-sale, at fair value	651,546	592,342
Investment securities, Held-to-maturity, at carrying value	146,316
Loans held for sale	66,856	122,440
Loans	1,835,312	1,979,375
Allowance for loan losses	(33,764)	(34,246)
Net loans	1,801,548	1,945,129
Land, premises and equipment, net	18,847	20,289
Operating lease right-of-use assets	4,203	6,918
Accrued interest receivable	8,463	9,662
Bank-owned life insurance	32,752	32,363
Goodwill	30,201	30,201
Other intangible assets	23,680	25,919
Servicing rights	1,964	1,987
Deferred income taxes, net	11,522	9,409
Other assets	43,901	44,150
Total assets	3,157,229	3,013,771
Deposits
Noninterest-bearing	758,820	754,716
Interest-bearing	1,952,120	1,817,277
Total deposits	2,710,940	2,571,993
Long-term debt	58,992	58,735
Operating lease liabilities	4,868	7,861
Accrued expenses and other liabilities	38,038	45,019
Total liabilities	2,812,838	2,683,608
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: 17,197,771 and 17,125,270 issued and outstanding	17,198	17,125
Additional paid-in capital	91,273	90,237
Retained earnings	233,397	212,163
Accumulated other comprehensive income (loss)	2,523	10,638
Total stockholders' equity	344,391	330,163
Total liabilities and stockholders' equity	$ 3,157,229	$ 3,013,771

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
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	17,197,771	17,125,270
Common stock, shares outstanding	17,197,771	17,125,270

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Interest Income
Loans, including fees	$ 19,324	$ 21,372	$ 39,891	$ 41,914
Investment securities - Taxable	2,897	1,765	5,298	3,524
Investment securities -Exempt from federal income taxes	233	239	469	474
Other	130	130	247	700
Total interest income	22,584	23,506	45,905	46,612
Interest Expense
Deposits	906	2,558	1,901	5,950
Long-term debt	538	857	826	1,734
Total interest expense	1,444	3,415	2,727	7,684
Net interest income	21,140	20,091	43,178	38,928
Provision for loan losses		3,500		6,000
Net interest income after provision for loan losses	21,140	16,591	43,178	32,928
Noninterest Income
Mortgage banking	12,287	17,546	29,419	22,591
Net gains (losses) on investment securities		1,294	114	1,294
Other	1,122	1,271	2,178	2,726
Total noninterest income	36,748	38,230	77,629	65,419
Noninterest Expense
Compensation	24,309	21,213	48,007	39,944
Employee taxes and benefits	5,572	4,747	11,385	10,055
Occupancy and equipment expense	1,918	2,612	4,149	5,104
Business services, software and technology expense	4,958	4,580	9,934	9,123
Intangible amortization expense	1,088	991	2,239	1,981
Professional fees and assessments	1,509	1,177	2,981	2,233
Marketing and business development	769	549	1,445	1,159
Supplies and postage	503	675	1,034	1,382
Travel	36	51	62	312
Mortgage and lending expenses	1,199	1,341	2,531	2,482
Other	689	1,798	1,825	2,685
Total noninterest expense	42,550	39,734	85,592	76,460
Income before income taxes	15,338	15,087	35,215	21,887
Income tax expense	3,644	3,613	8,306	5,050
Net income	$ 11,694	$ 11,474	$ 26,909	$ 16,837
Per Common Share Data
Basic earnings per common share	$ 0.67	$ 0.66	$ 1.54	$ 0.97
Diluted earnings per common share	0.66	0.65	1.52	0.95
Dividends declared per common share	$ 0.16	$ 0.15	$ 0.31	$ 0.30
Average common shares outstanding	17,194	17,111	17,170	17,091
Diluted average common shares outstanding	17,497	17,445	17,482	17,425
Retirement and Benefit Services
Noninterest Income
Revenue	$ 17,871	$ 13,710	$ 35,126	$ 29,930
Wealth Management
Noninterest Income
Revenue	5,138	4,112	10,124	8,158
Deposit Account
Noninterest Income
Revenue	$ 330	$ 297	$ 668	$ 720

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Consolidated Statements of Comprehensive Income
Net Income	$ 11,694	$ 11,474	$ 26,909	$ 16,837
Other Comprehensive Income (Loss), Net of Tax
Unrealized gains (losses) on available-for-sale securities	7,430	4,794	(10,606)	11,753
Accretion of gains (losses) on debt securities reclassified to held-to-maturity	(115)		(115)
Reclassification adjustment for losses (gains) realized in income		(1,294)	(114)	(1,294)
Total other comprehensive income (loss), before tax	7,315	3,500	(10,835)	10,459
Income tax expense (benefit) related to items of other comprehensive income	1,836	878	(2,720)	2,624
Other comprehensive income (loss), net of tax	5,479	2,622	(8,115)	7,835
Total comprehensive income	$ 17,173	$ 14,096	$ 18,794	$ 24,672

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)	Total
Beginning balance at Dec. 31, 2019	$ 17,050	$ 88,650	$ 178,092	$ 1,936	$ 285,728
Net Income			16,837		16,837
Other comprehensive income (loss)				7,835	7,835
Common stock repurchased	(15)	(111)	(210)		(336)
Common stock dividends			(5,191)		(5,191)
Share-based compensation expense	14	845			859
Vesting of restricted stock	71	(71)
Ending balance at Jun. 30, 2020	17,120	89,313	189,528	9,771	305,732
Beginning balance at Mar. 31, 2020	17,106	88,703	180,650	7,149	293,608
Net Income			11,474		11,474
Other comprehensive income (loss)				2,622	2,622
Common stock dividends			(2,596)		(2,596)
Share-based compensation expense	14	610			624
Ending balance at Jun. 30, 2020	17,120	89,313	189,528	9,771	305,732
Beginning balance at Dec. 31, 2020	17,125	90,237	212,163	10,638	330,163
Net Income			26,909		26,909
Other comprehensive income (loss)				(8,115)	(8,115)
Common stock repurchased	(16)	(134)	(296)		(446)
Common stock dividends			(5,379)		(5,379)
Share-based compensation expense	8	1,251			1,259
Vesting of restricted stock	81	(81)
Ending balance at Jun. 30, 2021	17,198	91,273	233,397	2,523	344,391
Beginning balance at Mar. 31, 2021	17,190	90,520	224,480	(2,956)	329,234
Net Income			11,694		11,694
Other comprehensive income (loss)				5,479	5,479
Common stock dividends			(2,777)		(2,777)
Share-based compensation expense	8	753			761
Ending balance at Jun. 30, 2021	$ 17,198	$ 91,273	$ 233,397	$ 2,523	$ 344,391

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Operating Activities
Net income	$ 26,909	$ 16,837
Adjustments to reconcile net income to net cash provided (used) by operating activities
Deferred income taxes	606	(3,543)
Provision for loan losses		6,000
Depreciation and amortization	4,555	4,382
Amortization and accretion of premiums/discounts on investment securities	1,674	684
Amortization of operating lease right-of-use assets	(22)	(12)
Stock-based compensation	1,259	859
Increase in value of bank-owned life insurance	(389)	(393)
Realized loss (gain) on sale of fixed assets	(62)
Realized loss (gain) on derivative instruments	4,803	(1,009)
Realized loss (gain) on loans sold	(27,206)	(19,099)
Realized loss (gain) on sale of foreclosed assets	(204)	(19)
Realized loss (gain) on sale of investment securities	(114)	(1,294)
Realized loss (gain) on servicing rights	(361)	558
Net change in:
Loans held for sale	82,713	(34,935)
Accrued interest receivable	1,199	(424)
Other assets	(5,632)	(3,826)
Accrued expenses and other liabilities	(5,404)	12,541
Net cash provided (used) by operating activities	84,324	(22,693)
Investing Activities
Proceeds from sales or calls of investment securities available-for-sale	13,189	39,505
Proceeds from maturities of investment securities available-for-sale	57,661	22,266
Purchases of investment securities available-for-sale	(291,361)	(134,079)
Proceeds from sales or calls of investment securities held-to-maturity	1,415
Proceeds from maturities of investment securities held-to-maturity	1,180
Net (increase) decrease in equity securities		2,808
Net (increase) decrease in loans	142,510	(315,888)
Purchases of premises and equipment	(429)	(1,998)
Proceeds from sales of foreclosed assets	481	303
Net cash provided (used) by investing activities	(75,354)	(387,083)
Financing Activities
Net increase (decrease) in deposits	138,947	481,837
Repayments of long-term debt	(49,804)	(103)
Proceeds from the issuance of subordinated debt	50,000
Cash dividends paid on common stock	(5,199)	(5,191)
Repurchase of common stock	(446)	(336)
Net cash provided (used) by financing activities	133,498	476,207
Net change in cash and cash equivalents	142,468	66,431
Cash and cash equivalents at beginning of period	172,962	144,006
Cash and cash equivalents at end of period	315,430	210,437
Cash paid for:
Interest	2,521	302
Income taxes	9,072	7,835
Non-cash information
Unrealized gain (loss) on investment securities available-for-sale	(8,000)	7,835
Accretion of unrealized gain (loss) on investment securities held-to-maturity	(115)
Investment securities transferred to held-to-maturity	$ 149,191
Right-of-use assets obtained in exchange for new operating leases		$ 1,531

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
Significant Accounting Policies
Significant Accounting Policies	NOTE 1 Significant Accounting Policies Organization Alerus Financial Corporation, or the Company, is a financial holding company organized under the laws of the state of Delaware. The Company and its subsidiaries operate as a diversified financial services company headquartered in Grand Forks, North Dakota. Through its subsidiary, Alerus Financial, National Association, or the Bank, the Company provides financial solutions to businesses and consumers through four distinct business lines—banking, retirement and benefit services, wealth management, and mortgage. Basis of Presentation The accompanying unaudited consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or SEC, and conform to practices within the banking industry and include all of the information and disclosures required by generally accepted accounting principles in the United States of America, or GAAP, for interim financial reporting. The accompanying unaudited consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair presentation of financial results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results for the full year or any other period. The Company has also evaluated all subsequent events for potential recognition and disclosure through the date of the filing of this Quarterly Report on Form 10-Q. These interim unaudited financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 12, 2021. Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company’s principal operating subsidiary is the Bank. 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 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. Reclassifications Certain items previously reported have been reclassified to conform to the current period’s reporting format. Such reclassifications did not affect net income or stockholders’ equity. Other Information As of June 30, 2021, the Coronavirus Disease, or COVID-19, pandemic is ongoing. During 2020, the COVID-19 pandemic created disruption in global supply chains, increased rates of unemployment and adversely impacted many industries, including industries related to the collateral underlying certain of our loans. In 2021, the U.S. economy has, with certain setbacks, begun reopening and wider distribution of vaccines has encouraged greater economic activity. Nonetheless, the economic recovery could remain uneven, particularly given uncertainty with respect to the distribution and acceptance of the vaccines and their effectiveness with respect to new variants of the virus. Management believes the Company is taking appropriate actions to mitigate, to the extent possible, the negative impact. However, the full impact of COVID-19 is currently unknown and cannot be reasonably estimated as the events are continuing to unfold as the year progresses. 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, 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 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. 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.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2021
New Accounting Pronouncements
Recent Accounting Pronouncements	NOTE 2 Recent Accounting Pronouncements The following FASB Accounting Standards Updates, or ASUs, are divided into pronouncements which have been adopted by the Company since January 1, 2021, and those which are not yet effective and have been evaluated or are currently being evaluated by management as of June 30, 2021. Adopted Pronouncements In January 2020, the FASB issued ASU 2020-01, Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoptions are permitted. The Company adopted ASU 2020-01 as of January 1, 2021 the implementation had no impact on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) in response to concerns about structural risks in accounting for reference rate reform. The ASU clarifies certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting to apply to derivatives that are affected by the discontinuing transition. The Company adopted ASU 2020-04, as of March 2020 and is putting a transition plan together but does not expect adoption to have a material impact on the Company’s 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. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments – Credit Losses (Topic 326). This update amends the effective date of ASU No. 2016-13 for certain entities, including private companies and smaller reporting companies, until fiscal years beginning after December 15, 2022, including interim periods within those fiscal periods. Early adoption is permitted. As an emerging growth company, the Company can take advantage of this delay and plans to adopt the standard with the amended effective date. The Company does not plan to early adopt this standard but continues to work on its implementation. The Company continues collecting and retaining loan and credit data and evaluating various loss estimation models. While we currently cannot reasonably estimate the impact of adopting this standard, we expect the impact will be influenced by the composition, characteristics, and quality of our loan portfolio, as well as the general economic conditions and forecasts as of the adoption date. 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. The Company will consider these clarifications and improvements in determining the appropriate adoption of ASU 2019-04. 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. In November 2019, the FASB Issued ASU 2019-10, which amends the effective date of this ASU for certain entities, including private companies and smaller reporting companies until after December 15, 2022, including interim periods within those fiscal years. As an emerging growth company, the Company can take advantage of this delay and plans to adopt the standard with the amended effective date. This update is not expected to have a significant impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740), which simplifies 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, for public business entities. For private companies and smaller reporting companies, this guidance is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2021. As an emerging growth company, the Company can take advantage of this later effective date. 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. In March 2020, the FASB issued ASU 2020-03. Codification Improvements to Financial Instruments. This ASU represents changes to clarify or improve the Accounting Standards Codification, or ASC, related to seven topics. The amendments make the ASC easier to understand and easier to apply by eliminating inconsistencies and providing clarifications. Issues 1, 2, 3, 4, and 5 are conforming amendments and for public business entities effective upon the issuance of the standard. Issues 6 and 7 are amendments that affect the guidance in ASU 2016-13. The Company will consider these clarifications and improvements in determining the appropriate adoption of ASU 2016-13. ​

Investment Securities

Investment Securities	6 Months Ended
	Jun. 30, 2021
Investment Securities
Investment Securities	NOTE 3 Investment Securities The following tables present amortized cost, gross unrealized gain and losses, and fair value of the available-for-sale investment securities and the amortized cost, net unrealized gains, carrying value, gross unrealized gains and losses and fair value of for held-to-maturity as of June 30, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair (dollars in thousands) Cost ​ Gains ​ Losses Value Available-for-sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Treasury and agencies ​ $ 5,570 ​ $ 90 ​ $ — ​ $ 5,660 Mortgage backed securities ​ ​ ​ ​ ​ ​ ​ Residential agency ​ 512,904 ​ 2,961 ​ (6,022) ​ 509,843 Commercial ​ 95,744 ​ 4,344 ​ — ​ 100,088 Asset backed securities ​ 69 ​ 3 ​ — ​ 72 Corporate bonds ​ 35,040 ​ 1,107 ​ (264) ​ 35,883 Total available-for-sale investment securities ​ $ 649,327 ​ $ 8,505 ​ $ (6,286) ​ $ 651,546 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ Amortized ​ Net Unrealized ​ Carrying ​ Unrealized ​ Unrealized ​ Fair (dollars in thousands) ​ Cost ​ Gains (1) ​ Value ​ Gains (2) ​ Losses (2) ​ Value Held-to-maturity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Obligations of state and political agencies ​ $ 147,466 ​ $ 1,150 ​ $ 146,316 ​ $ 1,974 ​ $ (5) ​ $ 148,285 Total held-to-maturity investment securities ​ $ 147,466 ​ $ 1,150 ​ $ 146,316 ​ $ 1,974 ​ $ (5) ​ $ 148,285 (1) Net unrealized gains on held-to-maturity securities represents the net unrealized gains /(losses) on previously available-for-sale securities transferred to held-to-maturity at fair value and is being amortized through accumulated other comprehensive income over the remaining life of the securities. (2) Unrecognized gains and losses of held-to-maturity securities are not reflected in the financial statements, as they represent fair value fluctuations from the date of the security is designated as held-to-maturity. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair (dollars in thousands) Cost ​ Gains ​ Losses Value Available-for-sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Treasury and agencies ​ $ 5,926 ​ $ — ​ $ (19) ​ $ 5,907 Obligations of state and political agencies ​ 148,491 ​ 5,282 ​ — ​ 153,773 Mortgage backed securities ​ ​ ​ ​ ​ ​ Residential agency ​ 303,760 ​ 3,395 ​ (436) ​ 306,719 Commercial ​ 89,300 ​ 5,678 ​ — ​ 94,978 Asset backed securities ​ 109 ​ 6 ​ — ​ 115 Corporate bonds ​ 30,552 ​ 388 ​ (90) ​ 30,850 Total available-for-sale investment securities ​ $ 578,138 ​ $ 14,749 ​ $ (545) ​ $ 592,342 ​ On April 1, 2021, the Company transferred its debt securities consisting of obligations of state and political agencies with a fair value of $149.2 million and a net unrealized gain of $1.3 million from available-for-sale to held-to-maturity. Gross unrealized losses on investment securities and the fair value of the related securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2021 and December 31, 2020, were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ Less than 12 Months ​ Over 12 Months ​ Total ​ ​ Unrealized ​ Fair ​ Unrealized ​ Fair ​ Unrealized ​ Fair (dollars in thousands) Losses Value Losses Value Losses Value Available-for-sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Treasury and agencies ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — Mortgage backed securities ​ ​ ​ ​ ​ ​ Residential agency ​ (6,022) ​ 322,584 ​ — ​ — ​ (6,022) ​ 322,584 Commercial ​ — ​ — ​ — ​ — ​ — ​ — Asset backed securities ​ — ​ — ​ — ​ 2 ​ — ​ 2 Corporate bonds ​ (264) ​ 9,736 ​ — ​ — ​ (264) ​ 9,736 Total available-for-sale investment securities ​ $ (6,286) ​ $ 332,320 ​ $ — ​ $ 2 ​ $ (6,286) ​ $ 332,322 Held-to-maturity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Obligations of state and political agencies ​ $ (5) ​ $ 5,996 ​ $ — ​ $ — ​ $ (5) ​ $ 5,996 Total held-to-maturity investment securities ​ ​ (5) ​ ​ 5,996 ​ ​ — ​ ​ — ​ ​ (5) ​ ​ 5,996 Total investment securities ​ $ (6,291) ​ $ 338,316 ​ ​ — ​ ​ 2 ​ ​ (6,291) ​ ​ 338,318 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ Less than 12 Months ​ Over 12 Months ​ Total ​ ​ Unrealized ​ Fair ​ Unrealized ​ Fair ​ Unrealized ​ Fair (dollars in thousands) Losses Value Losses Value Losses Value Available-for-sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Treasury and agencies ​ $ (10) ​ $ 4,509 ​ $ (9) ​ $ 1,309 ​ $ (19) ​ $ 5,818 Obligations of state and political agencies ​ — ​ — ​ — ​ — ​ — ​ — Mortgage backed securities ​ ​ ​ ​ ​ ​ Residential agency ​ (432) ​ 68,494 ​ (4) ​ 2,356 ​ (436) ​ 70,850 Commercial ​ — ​ — ​ — ​ — ​ — ​ — Asset backed securities ​ — ​ — ​ — ​ 2 ​ — ​ 2 Corporate bonds ​ (90) ​ 16,454 ​ — ​ — ​ (90) ​ 16,454 Total available-for-sale investment securities ​ $ (532) ​ $ 89,457 ​ $ (13) ​ $ 3,667 ​ $ (545) ​ $ 93,124 ​ For all of the above investment securities, the unrealized losses were generally due to changes in interest rates and unrealized losses were considered to be temporary as the fair value is expected to recover as the securities approach their maturity dates. 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 three and six months ended June 30, 2021 and 2020, the Company did not recognize OTTI losses on its investment securities. The following table presents amortized cost and fair value of available-for-sale and held-to-maturity investment securities as of June 30, 2021, by contractual maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Held-to-maturity ​ Available-for-sale ​ ​ Carrying ​ Fair ​ Amortized ​ Fair (dollars in thousands) Value ​ Value ​ Cost Value Due within one year or less ​ $ 5,141 ​ $ 5,142 ​ $ — ​ $ — Due after one year through five years ​ 28,706 ​ 28,745 ​ 3,001 ​ 3,100 Due after five years through ten years ​ 76,714 ​ 77,812 ​ 86,721 ​ 89,886 Due after 10 years ​ 35,755 ​ 36,586 ​ 559,605 ​ 558,560 Total investment securities ​ $ 146,316 ​ $ 148,285 ​ $ 649,327 ​ $ 651,546 ​ 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 a total carrying value of $171.4 million and $160.8 million were pledged as of June 30, 2021 and December 31, 2020, respectively, to secure public deposits and for other purposes required or permitted by law. Proceeds from the sale or call of available-for-sale investment securities, for the three and six months ended June 30, 2021 and 2020, are displayed in the table below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Six months ended ​ ​ June 30, ​ June 30, (dollars in thousands) 2021 2020 2021 2020 Proceeds ​ $ — ​ $ 35,505 ​ $ 13,189 ​ $ 39,505 Realized gains ​ — ​ 1,294 ​ 114 ​ 1,294 Realized losses ​ — ​ — ​ — ​ — ​ As of June 30, 2021 and December 31, 2020, the carrying value of the Company’s Federal Reserve stock and Federal Home Loan Bank of Des Moines, or FHLB, stock was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, (dollars in thousands) 2021 2020 Federal Reserve ​ $ 2,675 ​ $ 2,675 FHLB ​ 3,839 ​ 3,090 ​ These securities can only be redeemed or sold at their par value and only to the respective issuing institution or to another member institution. The Company records these non-marketable equity securities as a component of other assets and periodically evaluates these securities for impairment. 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 June 30, 2021, 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 June 30, 2021 and December 31, 2020, are carried at a zero cost basis.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	6 Months Ended
	Jun. 30, 2021
Loans and Allowance for Loan Losses
Loans and Allowance for Loan Losses	NOTE 4 Loans and Allowance for Loan Losses The following table presents total loans outstanding, by portfolio segment, as of June 30, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, (dollars in thousands) 2021 2020 Commercial ​ ​ ​ ​ ​ ​ Commercial and industrial (1) ​ $ 572,734 ​ $ 691,858 Real estate construction ​ 36,549 ​ 44,451 Commercial real estate ​ 567,987 ​ 563,007 Total commercial ​ 1,177,270 ​ 1,299,316 Consumer ​ ​ Residential real estate first mortgage ​ 470,822 ​ 463,370 Residential real estate junior lien ​ 130,180 ​ 143,416 Other revolving and installment ​ 57,040 ​ 73,273 Total consumer ​ 658,042 ​ 680,059 Total loans ​ $ 1,835,312 ​ $ 1,979,375 (1) Included Paycheck Protection Program, or PPP, loans of $165.0 million at June 30, 2021 and $268.4 million at December 31, 2020. ​ Total loans included net deferred loan fees and costs of $4.4 million and $4.7 million at June 30, 2021 and December 31, 2020, respectively. Deferred loan fees on PPP loans were $4.6 million at June 30, 2021 and $4.3 million at December 31, 2020. Management monitors the credit quality of its loan portfolio on an ongoing basis. Measurements 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. Loan modifications made in accordance with the Interagency Statement on Loan Modifications and Reporting for Financial Institutions as issued on April 7, 2020, are included as accruing current. The following tables present a past due aging analysis of total loans outstanding, by portfolio segment, as of June 30, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ ​ ​ ​ ​ ​ ​ 90 Days ​ ​ ​ ​ ​ ​ ​ ​ Accruing ​ 30 - 89 Days ​ or More ​ ​ ​ ​ Total (dollars in thousands) Current Past Due Past Due Nonaccrual Loans Commercial ​ ​ ​ ​ ​ Commercial and industrial ​ $ 570,287 ​ $ 312 ​ $ — ​ $ 2,135 ​ $ 572,734 Real estate construction ​ 36,549 ​ — ​ — ​ — ​ 36,549 Commercial real estate ​ 563,521 ​ — ​ — ​ 4,466 ​ 567,987 Total commercial ​ 1,170,357 ​ 312 ​ — ​ 6,601 ​ 1,177,270 Consumer ​ ​ ​ ​ ​ Residential real estate first mortgage ​ 469,273 ​ 1,526 ​ — ​ 23 ​ 470,822 Residential real estate junior lien ​ 129,698 ​ 159 ​ — ​ 323 ​ 130,180 Other revolving and installment ​ 56,757 ​ 270 ​ — ​ 13 ​ 57,040 Total consumer ​ 655,728 ​ 1,955 ​ — ​ 359 ​ 658,042 Total loans ​ $ 1,826,085 ​ $ 2,267 ​ $ — ​ $ 6,960 ​ $ 1,835,312 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ ​ ​ ​ ​ ​ ​ 90 Days ​ ​ ​ ​ ​ ​ ​ ​ Accruing ​ 30 - 89 Days ​ or More ​ ​ ​ ​ Total (dollars in thousands) Current Past Due Past Due Nonaccrual Loans Commercial ​ ​ ​ ​ ​ Commercial and industrial ​ $ 689,340 ​ $ 500 ​ $ 30 ​ $ 1,988 ​ $ 691,858 Real estate construction ​ 44,451 ​ — ​ — ​ — ​ 44,451 Commercial real estate ​ 558,127 ​ 2,449 ​ — ​ 2,431 ​ 563,007 Total commercial ​ 1,291,918 ​ 2,949 ​ 30 ​ 4,419 ​ 1,299,316 Consumer ​ ​ ​ ​ ​ Residential real estate first mortgage ​ 461,179 ​ 1,752 ​ — ​ 439 ​ 463,370 Residential real estate junior lien ​ 143,060 ​ 191 ​ — ​ 165 ​ 143,416 Other revolving and installment ​ 73,128 ​ 118 ​ — ​ 27 ​ 73,273 Total consumer ​ 677,367 ​ 2,061 ​ — ​ 631 ​ 680,059 Total loans ​ $ 1,969,285 ​ $ 5,010 ​ $ 30 ​ $ 5,050 ​ $ 1,979,375 ​ The Company’s consumer loan portfolio is primarily comprised of secured loans that 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: Special Mention: Substandard: Doubtful: Loss: The tables below present total loans outstanding, by loan portfolio segment, and risk category as of June 30, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ ​ ​ ​ Criticized ​ ​ ​ ​ ​ ​ ​ ​ Special ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) Pass Mention Substandard Doubtful Total Commercial ​ ​ ​ ​ ​ Commercial and industrial ​ $ 561,345 ​ $ 1,515 ​ $ 9,874 ​ $ — ​ $ 572,734 Real estate construction ​ 36,549 ​ — ​ — ​ — ​ 36,549 Commercial real estate ​ 542,417 ​ 3,339 ​ 22,231 ​ — ​ 567,987 Total commercial ​ ​ 1,140,311 ​ ​ 4,854 ​ ​ 32,105 ​ ​ — ​ ​ 1,177,270 Consumer ​ ​ ​ ​ ​ Residential real estate first mortgage ​ 469,037 ​ — ​ 1,785 ​ — ​ 470,822 Residential real estate junior lien ​ 128,661 ​ 395 ​ 1,124 ​ — ​ 130,180 Other revolving and installment ​ 57,027 ​ — ​ 13 ​ — ​ 57,040 Total consumer ​ 654,725 ​ 395 ​ 2,922 ​ — ​ 658,042 Total loans ​ $ 1,795,036 ​ $ 5,249 ​ $ 35,027 ​ $ — ​ $ 1,835,312 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ ​ ​ ​ Criticized ​ ​ ​ ​ ​ ​ ​ ​ Special ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) Pass Mention Substandard Doubtful Total Commercial ​ ​ ​ ​ ​ Commercial and industrial ​ $ 669,602 ​ $ 5,415 ​ $ 16,841 ​ $ — ​ $ 691,858 Real estate construction ​ 44,451 ​ — ​ — ​ — ​ 44,451 Commercial real estate ​ 533,733 ​ 6,686 ​ 22,588 ​ — ​ 563,007 Total commercial ​ ​ 1,247,786 ​ ​ 12,101 ​ ​ 39,429 ​ ​ — ​ ​ 1,299,316 Consumer ​ ​ ​ ​ ​ Residential real estate first mortgage ​ 461,221 ​ 1,406 ​ 743 ​ — ​ 463,370 Residential real estate junior lien ​ 140,461 ​ 1,819 ​ 1,136 ​ — ​ 143,416 Other revolving and installment ​ 73,236 ​ — ​ 37 ​ — ​ 73,273 Total consumer ​ 674,918 ​ 3,225 ​ 1,916 ​ — ​ 680,059 Total loans ​ $ 1,922,704 ​ $ 15,326 ​ $ 41,345 ​ $ — ​ $ 1,979,375 ​ 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 pools 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 and six months ended June 30, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2021 ​ ​ Beginning ​ Provision for ​ Loan ​ Loan ​ Ending (dollars in thousands) Balance Loan Losses Charge-offs Recoveries Balance Commercial ​ ​ ​ ​ ​ Commercial and industrial ​ $ 10,487 ​ $ (869) ​ $ (273) ​ $ 275 ​ $ 9,620 Real estate construction ​ 598 ​ (11) ​ — ​ — ​ 587 Commercial real estate ​ 13,849 ​ (913) ​ — ​ 1 ​ 12,937 Total commercial ​ 24,934 ​ (1,793) ​ (273) ​ 276 ​ 23,144 Consumer ​ ​ ​ ​ ​ Residential real estate first mortgage ​ 6,047 ​ 129 ​ — ​ — ​ 6,176 Residential real estate junior lien ​ 1,288 ​ 99 ​ — ​ 14 ​ 1,401 Other revolving and installment ​ 666 ​ (81) ​ (49) ​ 38 ​ 574 Total consumer ​ 8,001 ​ 147 ​ (49) ​ 52 ​ 8,151 Unallocated ​ 823 ​ 1,646 ​ — ​ — ​ 2,469 Total ​ $ 33,758 ​ $ — ​ $ (322) ​ $ 328 ​ $ 33,764 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2021 ​ ​ Beginning ​ Provision for ​ Loan ​ Loan ​ Ending (dollars in thousands) Balance Loan Losses Charge-offs Recoveries Balance Commercial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ $ 10,205 ​ $ (553) ​ $ (477) ​ $ 445 ​ $ 9,620 Real estate construction ​ ​ 658 ​ ​ (71) ​ ​ — ​ ​ — ​ ​ 587 Commercial real estate ​ ​ 14,105 ​ ​ (636) ​ ​ (536) ​ ​ 4 ​ ​ 12,937 Total commercial ​ ​ 24,968 ​ ​ (1,260) ​ ​ (1,013) ​ ​ 449 ​ ​ 23,144 Consumer ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential real estate first mortgage ​ ​ 5,774 ​ ​ 402 ​ ​ — ​ ​ — ​ ​ 6,176 Residential real estate junior lien ​ ​ 1,373 ​ ​ (69) ​ ​ — ​ ​ 97 ​ ​ 1,401 Other revolving and installment ​ ​ 753 ​ ​ (164) ​ ​ (93) ​ ​ 78 ​ ​ 574 Total consumer ​ ​ 7,900 ​ ​ 169 ​ ​ (93) ​ ​ 175 ​ ​ 8,151 Unallocated ​ ​ 1,378 ​ ​ 1,091 ​ ​ — ​ ​ — ​ ​ 2,469 Total ​ $ 34,246 ​ $ — ​ $ (1,106) ​ $ 624 ​ $ 33,764 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2020 ​ ​ Beginning ​ Provision for ​ Loan ​ Loan ​ Ending (dollars in thousands) Balance Loan Losses Charge-offs Recoveries Balance Commercial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ $ 12,901 ​ $ 278 ​ $ (2,703) ​ $ 321 ​ $ 10,797 Real estate construction ​ ​ 334 ​ 109 ​ — ​ — ​ ​ 443 Commercial real estate ​ ​ 8,276 ​ 2,537 ​ (865) ​ — ​ ​ 9,948 Total commercial ​ ​ 21,511 ​ 2,924 ​ (3,568) ​ 321 ​ ​ 21,188 Consumer ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential real estate first mortgage ​ ​ 2,209 ​ 459 ​ — ​ 5 ​ ​ 2,673 Residential real estate junior lien ​ ​ 1,025 ​ 32 ​ (12) ​ 57 ​ ​ 1,102 Other revolving and installment ​ ​ 441 ​ 171 ​ (86) ​ 20 ​ ​ 546 Total consumer ​ ​ 3,675 ​ ​ 662 ​ ​ (98) ​ ​ 82 ​ ​ 4,321 Unallocated ​ ​ 1,833 ​ (86) ​ ​ — ​ ​ — ​ ​ 1,747 Total ​ $ 27,019 ​ $ 3,500 ​ $ (3,666) ​ $ 403 ​ $ 27,256 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2020 ​ ​ Beginning ​ Provision for ​ Loan ​ Loan ​ Ending (dollars in thousands) Balance Loan Losses Charge-offs Recoveries Balance Commercial ​ ​ ​ ​ ​ Commercial and industrial ​ $ 12,270 ​ $ 348 ​ $ (2,735) ​ $ 914 ​ $ 10,797 Real estate construction ​ 303 ​ 140 ​ — ​ — ​ 443 Commercial real estate ​ 6,688 ​ 4,125 ​ (865) ​ — ​ 9,948 Total commercial ​ 19,261 ​ 4,613 ​ (3,600) ​ 914 ​ 21,188 Consumer ​ ​ ​ ​ ​ ​ Residential real estate first mortgage ​ 1,448 ​ 1,220 ​ — ​ 5 ​ 2,673 Residential real estate junior lien ​ 671 ​ 349 ​ (12) ​ 94 ​ 1,102 Other revolving and installment ​ 352 ​ 263 ​ (153) ​ 84 ​ 546 Total consumer ​ 2,471 ​ 1,832 ​ (165) ​ 183 ​ 4,321 Unallocated ​ 2,192 ​ (445) ​ — ​ — ​ 1,747 Total ​ $ 23,924 ​ $ 6,000 ​ $ (3,765) ​ $ 1,097 ​ $ 27,256 ​ The following tables present the recorded investment in loans and related allowance for loan losses, by loan portfolio segment, disaggregated on the basis of the Company’s impairment methodology, as of June 30, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ Recorded Investment ​ Allowance for Loan Losses ​ ​ Individually ​ Collectively ​ ​ ​ ​ Individually ​ Collectively ​ ​ ​ (dollars in thousands) Evaluated Evaluated Total Evaluated Evaluated Total Commercial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ $ 2,696 ​ $ 570,038 ​ $ 572,734 ​ $ 885 ​ $ 8,735 ​ $ 9,620 Real estate construction ​ — ​ 36,549 ​ 36,549 ​ ​ — ​ ​ 587 ​ ​ 587 Commercial real estate ​ 4,653 ​ 563,334 ​ 567,987 ​ ​ 7 ​ ​ 12,930 ​ ​ 12,937 Total commercial ​ 7,349 ​ 1,169,921 ​ 1,177,270 ​ ​ 892 ​ ​ 22,252 ​ ​ 23,144 Consumer ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential real estate first mortgage ​ 23 ​ 470,799 ​ 470,822 ​ ​ — ​ ​ 6,176 ​ ​ 6,176 Residential real estate junior lien ​ 326 ​ 129,854 ​ 130,180 ​ ​ 27 ​ ​ 1,374 ​ ​ 1,401 Other revolving and installment ​ 13 ​ 57,027 ​ 57,040 ​ ​ 3 ​ ​ 571 ​ ​ 574 Total consumer ​ 362 ​ 657,680 ​ 658,042 ​ ​ 30 ​ ​ 8,121 ​ ​ 8,151 Unallocated ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 2,469 Total loans ​ $ 7,711 ​ $ 1,827,601 ​ $ 1,835,312 ​ $ 922 ​ $ 30,373 ​ $ 33,764 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ Recorded Investment ​ Allowance for Loan Losses ​ ​ Individually ​ Collectively ​ ​ ​ ​ Individually ​ Collectively ​ ​ ​ (dollars in thousands) Evaluated Evaluated Total Evaluated Evaluated Total Commercial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ $ 2,616 ​ $ 689,242 ​ $ 691,858 ​ $ 336 ​ $ 9,869 ​ $ 10,205 Real estate construction ​ — ​ 44,451 ​ 44,451 ​ ​ — ​ ​ 658 ​ ​ 658 Commercial real estate ​ 5,224 ​ 557,783 ​ 563,007 ​ ​ 837 ​ ​ 13,268 ​ ​ 14,105 Total commercial ​ 7,840 ​ 1,291,476 ​ 1,299,316 ​ ​ 1,173 ​ ​ 23,795 ​ ​ 24,968 Consumer ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential real estate first mortgage ​ 439 ​ 462,931 ​ 463,370 ​ ​ — ​ ​ 5,774 ​ ​ 5,774 Residential real estate junior lien ​ 224 ​ ​ 143,192 ​ 143,416 ​ ​ 19 ​ ​ 1,354 ​ ​ 1,373 Other revolving and installment ​ 27 ​ 73,246 ​ 73,273 ​ ​ 13 ​ ​ 740 ​ ​ 753 Total consumer ​ 690 ​ 679,369 ​ 680,059 ​ ​ 32 ​ ​ 7,868 ​ ​ 7,900 Unallocated ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,378 Total loans ​ $ 8,530 ​ $ 1,970,845 ​ $ 1,979,375 ​ $ 1,205 ​ $ 31,663 ​ $ 34,246 ​ 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 December 31, 2020 ​ ​ Recorded ​ Unpaid ​ Related Recorded ​ Unpaid ​ Related (dollars in thousands) Investment Principal Allowance Investment Principal Allowance Impaired loans with a valuation allowance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ $ 1,534 ​ $ 1,546 ​ $ 885 ​ $ 723 ​ $ 725 ​ $ 336 Commercial real estate ​ 187 ​ 211 ​ 7 ​ 3,948 ​ 3,974 ​ 837 Residential real estate junior lien ​ 27 ​ 28 ​ ​ 27 ​ ​ 19 ​ 20 ​ ​ 19 Other revolving and installment ​ 13 ​ 13 ​ 3 ​ ​ 27 ​ 27 ​ 13 Total impaired loans with a valuation allowance ​ ​ 1,761 ​ ​ 1,798 ​ ​ 922 ​ ​ 4,717 ​ ​ 4,746 ​ ​ 1,205 Impaired loans without a valuation allowance ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ ​ 1,162 ​ ​ 1,314 ​ ​ — ​ ​ 1,893 ​ ​ 2,173 ​ ​ — Commercial real estate ​ 4,466 ​ ​ 4,621 ​ — ​ ​ 1,276 ​ 1,415 ​ — Residential real estate first mortgage ​ 23 ​ 25 ​ — ​ ​ 439 ​ 464 ​ — Residential real estate junior lien ​ 299 ​ 325 ​ — ​ ​ 205 ​ 306 ​ — Other revolving and installment ​ — ​ — ​ — ​ ​ — ​ — ​ — Total impaired loans without a valuation allowance ​ ​ 5,950 ​ ​ 6,285 ​ ​ — ​ ​ 3,813 ​ ​ 4,358 ​ ​ — Total impaired loans ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ ​ 2,696 ​ ​ 2,860 ​ ​ 885 ​ ​ 2,616 ​ ​ 2,898 ​ ​ 336 Commercial real estate ​ 4,653 ​ 4,832 ​ 7 ​ 5,224 ​ 5,389 ​ 837 Residential real estate first mortgage ​ ​ 23 ​ ​ 25 ​ ​ — ​ ​ 439 ​ ​ 464 ​ ​ — Residential real estate junior lien ​ 326 ​ 353 ​ 27 ​ 224 ​ 326 ​ 19 Other revolving and installment ​ 13 ​ 13 ​ 3 ​ 27 ​ 27 ​ 13 Total impaired loans ​ $ 7,711 ​ $ 8,083 ​ $ 922 ​ $ 8,530 ​ $ 9,104 ​ $ 1,205 ​ The table below presents the average recorded investment in impaired loans and interest income for the three and six months ended June 30, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ ​ 2021 ​ 2020 ​ ​ Average ​ ​ ​ ​ Average ​ ​ ​ ​ ​ Recorded ​ Interest ​ Recorded ​ Interest (dollars in thousands) Investment Income Investment Income Impaired loans with a valuation allowance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ $ 1,548 ​ $ 3 ​ $ 4,881 ​ $ 15 Commercial real estate ​ ​ 188 ​ ​ 2 ​ ​ 200 ​ ​ 8 Residential real estate first mortgage ​ ​ — ​ ​ — ​ ​ — ​ ​ — Residential real estate junior lien ​ ​ 27 ​ ​ — ​ ​ 20 ​ ​ — Other revolving and installment ​ ​ 13 ​ ​ — ​ ​ 35 ​ ​ — Total impaired loans with a valuation allowance ​ ​ 1,776 ​ ​ 5 ​ ​ 5,136 ​ ​ 23 Impaired loans without a valuation allowance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ ​ 1,174 ​ ​ 5 ​ ​ 694 ​ ​ 26 Commercial real estate ​ ​ 4,472 ​ ​ — ​ ​ 1,693 ​ ​ — Residential real estate first mortgage ​ ​ 23 ​ ​ — ​ ​ 755 ​ ​ — Residential real estate junior lien ​ ​ 302 ​ ​ — ​ ​ 255 ​ ​ 3 Other revolving and installment ​ ​ — ​ ​ — ​ ​ 4 ​ ​ — Total impaired loans without a valuation allowance ​ ​ 5,971 ​ ​ 5 ​ ​ 3,401 ​ ​ 29 Total impaired loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ ​ 2,722 ​ ​ 8 ​ ​ 5,575 ​ ​ 41 Commercial real estate ​ ​ 4,660 ​ ​ 2 ​ ​ 1,893 ​ ​ 8 Residential real estate first mortgage ​ ​ 23 ​ ​ — ​ ​ 755 ​ ​ — Residential real estate junior lien ​ ​ 329 ​ ​ — ​ ​ 275 ​ ​ 3 Other revolving and installment ​ ​ 13 ​ ​ — ​ ​ 39 ​ ​ — Total impaired loans ​ $ 7,747 ​ $ 10 ​ $ 8,537 ​ $ 52 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, ​ ​ 2021 ​ 2020 ​ ​ Average ​ ​ ​ ​ Average ​ ​ ​ ​ ​ Recorded ​ Interest ​ Recorded ​ Interest (dollars in thousands) Investment Income Investment Income Impaired loans with a valuation allowance ​ ​ ​ ​ Commercial and industrial ​ $ 1,637 ​ $ 6 ​ $ 4,714 ​ $ 15 Commercial real estate ​ 190 ​ 4 ​ 203 ​ 8 Residential real estate junior lien ​ 30 ​ — ​ 20 ​ — Other revolving and installment ​ 14 ​ — ​ 35 ​ — Total impaired loans with a valuation allowance ​ ​ 1,871 ​ ​ 10 ​ ​ 4,972 ​ ​ 23 Impaired loans without a valuation allowance ​ ​ ​ ​ ​ Commercial and industrial ​ ​ 1,187 ​ ​ 11 ​ ​ 747 ​ ​ 26 Commercial real estate ​ 4,662 ​ — ​ 1,821 ​ — Residential real estate first mortgage ​ 24 ​ — ​ 761 ​ — Residential real estate junior lien ​ 303 ​ — ​ 279 ​ ​ 3 Other revolving and installment ​ — ​ — ​ 5 ​ — Total impaired loans without a valuation allowance ​ ​ 6,176 ​ ​ 11 ​ ​ 3,613 ​ ​ 29 Total impaired loans ​ ​ ​ ​ Commercial and industrial ​ ​ 2,824 ​ ​ 17 ​ ​ 5,461 ​ ​ 41 Commercial real estate ​ 4,852 ​ 4 ​ 2,024 ​ 8 Residential real estate first mortgage ​ 24 ​ — ​ 761 ​ — Residential real estate junior lien ​ 333 ​ — ​ 299 ​ 3 Other revolving and installment ​ 14 ​ — ​ 40 ​ — Total impaired loans ​ $ 8,047 ​ $ 21 ​ $ 8,585 ​ $ 52 ​ Loans with a carrying value of $1.2 billion as of June 30, 2021 and December 31, 2020, respectively, were pledged to secure 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 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 a reduction of interest rates, an 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 second quarter of 2021, there were 3 loans modified as TDRs as a result of changing the terms allowing for interest rate reductions and an extension of the maturity dates. As of June 30, 2021, the carrying value of the restructured loans was $795 thousand. The loans are not currently performing in compliance with the modified terms and were placed on nonaccrual. There is no specific reserve for loan losses allocated to the loans modified as TDRs. During the second quarter of 2020, there were no loans modified as a TDR. The Company does not have material commitments to lend additional funds to borrowers with loans whose terms have been modified in TDRs or whose loans are on nonaccrual. Beginning in 2020, in accordance with the Interagency Statement on Loan Modifications and Reporting for Financial Institutions as issued on April 7, 2020, through June 30, 2021, the Company had entered into modifications on 584 loans representing $154.5 million in principal balances, since the beginning of the COVID-19 pandemic. Of those loans, 12 loans with a total outstanding principal balance of $5.3 million, have been granted additional deferrals, 4 loans with a total outstanding principal balance of $653 thousand remain on the first deferral and the remaining loans have been returned to a normal payment status. These deferrals were generally no more than 90 days in duration and were not considered TDRs.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Jun. 30, 2021
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	NOTE 5 Goodwill and Other Intangible Assets The following table summarizes the carrying amount of goodwill, by segment, as of June 30, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, (dollars in thousands) 2021 2020 Banking ​ $ 20,131 ​ $ 20,131 Retirement and benefit services ​ ​ 10,070 ​ ​ 10,070 Total goodwill ​ $ 30,201 ​ $ 30,201 ​ Goodwill is evaluated for impairment on an annual basis, at a minimum, and more frequently when the economic environment warrants. The Company determined that there was no goodwill impairment as of June 30, 2021. The gross carrying amount and accumulated amortization for each type of identifiable intangible asset are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ December 31, 2020 (dollars in thousands) Gross Carrying Amount Accumulated Amortization Total Gross Carrying Amount Accumulated Amortization Total Identifiable customer intangibles ​ $ 43,346 ​ $ (19,666) ​ $ 23,680 ​ $ 43,346 ​ $ (17,490) ​ $ 25,856 Core deposit intangible assets ​ ​ — ​ ​ — ​ ​ — ​ ​ 3,793 ​ ​ (3,730) ​ ​ 63 Total intangible assets ​ $ 43,346 ​ $ (19,666) ​ $ 23,680 ​ $ 47,139 ​ $ (21,220) ​ $ 25,919 ​ Amortization of intangible assets was $1.1 million and $1.0 million for the three months ended June 30, 2021, and 2020, respectively. Amortization of intangible assets was $2.2 million and $2.0 million for the six months ended June 30, 2021, and 2020, respectively.

Loan Servicing

Loan Servicing	6 Months Ended
	Jun. 30, 2021
Loan Servicing
Loan Servicing	NOTE 6 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 $417.5 million and $445.5 million as of June 30, 2021 and December 31, 2020, 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 three and six months ended June 30, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended Six months ended ​ ​ June 30, ​ June 30, (dollars in thousands) 2021 2020 2021 2020 Balance, beginning of period ​ $ 1,952 ​ $ 3,277 ​ $ 1,987 ​ $ 3,845 Additions ​ ​ 62 ​ ​ 88 ​ 111 ​ 112 Amortization ​ ​ (185) ​ ​ (209) ​ (385) ​ (396) (Impairment)/Recovery ​ ​ 135 ​ ​ (265) ​ 251 ​ (670) Balance, end of period ​ $ 1,964 ​ $ 2,891 ​ $ 1,964 ​ $ 2,891 ​ The following is a summary of key data and assumptions used in the valuation of servicing rights as of June 30, 2021 and December 31, 2020. Increases or decreases in any one of these assumptions would result in lower or higher fair value measurements. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, (dollars in thousands) ​ 2021 ​ 2020 ​ Fair value of servicing rights ​ $ 1,964 ​ $ 1,987 ​ Weighted-average remaining term, years ​ 20.1 ​ 20.1 ​ Prepayment speeds ​ 17.2 % 17.7 % Discount rate ​ 9.3 % 9.0 % ​

Leases

Leases	6 Months Ended
	Jun. 30, 2021
Leases
Leases	NOTE 7 Leases Substantially all of the leases in which the Company is the lessee are comprised of real estate property for offices and office equipment rentals with terms extending through 2027. Portions of certain properties are subleased for terms extending through 2024. 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. The Company has one existing finance lease for the Company’s headquarters building with a lease term through 2022. 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 right-of-use, or ROU, assets and lease liabilities on the consolidated financial statements. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, (dollars in thousands) ​ 2021 2020 Lease Right-of-Use Assets ​ Classification ​ ​ ​ ​ ​ ​ Operating lease right-of-use assets Operating lease right-of-use assets ​ $ 4,203 ​ $ 6,918 Finance lease right-of-use assets Land, premises and equipment, net ​ 144 ​ 202 Total lease right-of-use assets ​ ​ ​ $ 4,347 ​ $ 7,120 Lease Liabilities ​ ​ ​ Operating lease liabilities Operating lease liabilities ​ $ 4,868 ​ $ 7,861 Finance lease liabilities Long-term debt ​ 319 ​ 430 Total lease liabilities ​ ​ ​ $ 5,187 ​ $ 8,291 ​ 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 rate used to 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 requires the use of the rate implicit in the lease whenever this 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. ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2021 2020 ​ Weighted-average remaining lease term, years ​ ​ ​ ​ ​ Operating leases 3.7 ​ 5.8 ​ Finance leases 1.3 ​ 1.8 ​ Weighted-average discount rate ​ ​ ​ Operating leases 2.5 % 2.9 % Finance leases 7.8 % 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 and 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 three and six months ending June 30, 2021 and 2020. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended Six months ended ​ ​ June 30, ​ June 30, (dollars in thousands) 2021 2020 2021 ​ 2020 Lease costs ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating lease cost ​ $ 492 ​ $ 568 ​ $ 988 ​ $ 1,191 Variable lease cost ​ ​ 158 ​ ​ 468 ​ 391 ​ 665 Short-term lease cost ​ ​ 46 ​ ​ 107 ​ 83 ​ 202 Finance lease cost ​ ​ ​ ​ ​ ​ ​ ​ Interest on lease liabilities ​ ​ 7 ​ ​ 11 ​ 15 ​ 23 Amortization of right-of-use assets ​ ​ 29 ​ ​ 29 ​ 58 ​ 58 Sublease income ​ ​ (52) ​ ​ (52) ​ (112) ​ (118) Net lease cost ​ $ 680 ​ $ 1,131 ​ $ 1,423 ​ $ 2,021 Other information ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities operating cash flows from operating leases ​ $ 474 ​ $ 561 ​ $ 961 ​ $ 1,179 Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ — ​ ​ 1,348 ​ ​ — ​ 1,531 ​ Future minimum payments for finance and operating leases with initial or remaining terms of one year or more as of June 30, 2021 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance ​ Operating (dollars in thousands) Leases Leases Twelve months ended ​ ​ ​ ​ ​ ​ June 30, 2022 ​ $ 251 ​ $ 1,664 June 30, 2023 ​ 84 ​ 1,616 June 30, 2024 ​ — ​ 1,112 June 30, 2025 ​ — ​ 392 June 30, 2026 ​ — ​ 345 Thereafter ​ — ​ 326 Total future minimum lease payments ​ $ 335 ​ $ 5,455 Amounts representing interest ​ (16) ​ (587) Total operating lease liabilities ​ $ 319 ​ $ 4,868 ​

Deposits

Deposits	6 Months Ended
	Jun. 30, 2021
Deposits.
Deposits	NOTE 8 Deposits The components of deposits in the consolidated balance sheets as of June 30, 2021 and December 31, 2020 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, (dollars in thousands) 2021 2020 Noninterest-bearing ​ $ 758,820 ​ $ 754,716 Interest-bearing ​ ​ Interest-bearing demand ​ 736,043 ​ 618,900 Savings accounts ​ 89,437 ​ 79,902 Money market savings ​ 920,831 ​ 909,137 Time deposits ​ 205,809 ​ 209,338 Total interest-bearing ​ 1,952,120 ​ 1,817,277 Total deposits ​ $ 2,710,940 ​ $ 2,571,993 ​

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2021
Long-Term Debt.
Long-Term Debt	NOTE 9 Long-Term Debt Long-term debt as of June 30, 2021 and December 31, 2020 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Period End ​ ​ ​ ​ ​ ​ Face ​ Carrying ​ ​ ​ Interest ​ Maturity ​ ​ (dollars in thousands) Value Value Interest Rate Rate Date Call Date Subordinated notes payable ​ $ 50,000 ​ $ 50,000 ​ Fixed ​ 3.50 % 3/30/2031 ​ 3/31/2026 Junior subordinated debenture (Trust I) ​ ​ 4,124 ​ ​ 3,470 Three-month LIBOR + 3.10% ​ 3.25 % 6/26/2033 6/26/2008 Junior subordinated debenture (Trust II) ​ 6,186 ​ 5,203 Three-month LIBOR + 1.80% ​ 1.92 % 9/15/2036 9/15/2011 Finance lease liability ​ 2,700 ​ 319 Fixed 7.81 % 10/31/2022 N/A Total long-term debt ​ $ 63,010 ​ $ 58,992 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Period End ​ ​ ​ ​ ​ ​ Face ​ Carrying ​ ​ ​ Interest ​ Maturity ​ ​ (dollars in thousands) Value Value Interest Rate Rate Date Call Date Subordinated notes payable ​ $ 50,000 ​ $ 49,688 Three-month LIBOR + 4.12% 4.36 % 12/30/2025 12/30/2020 Junior subordinated debenture (Trust I) ​ 4,124 ​ 3,447 Three-month LIBOR + 3.10% ​ 3.35 % 6/26/2033 6/26/2008 Junior subordinated debenture (Trust II) ​ 6,186 ​ 5,170 Three-month LIBOR + 1.80% ​ 2.02 % 9/15/2036 9/15/2011 Finance lease liability ​ 2,700 ​ 430 Fixed 7.81 % 10/31/2022 N/A Total long-term debt ​ $ 63,010 ​ $ 58,735 ​

Financial Instruments with Off-

Financial Instruments with Off-Balance Sheet Risk	6 Months Ended
	Jun. 30, 2021
Financial Instruments with Off-Balance Sheet Risk
Financial Instruments with Off-Balance Sheet Risk	NOTE 10 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. A summary of the contractual amounts of the Company’s exposure to off-balance sheet risk was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, (dollars in thousands) 2021 2020 Commitments to extend credit ​ $ 610,448 ​ $ 611,140 Standby letters of credit ​ 6,406 ​ 6,510 Total ​ $ 616,854 ​ $ 617,650 ​ 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. The Company utilizes standby letters of credit issued by either the FHLB or the Bank of North Dakota to secure public unit deposits. The Company had a $150 thousand letter of credit with the FHLB as of June 30, 2021 and December 31, 2020. With the Bank of North Dakota, the Company had no letters of credit outstanding as of June 30, 2021 and December 31, 2020. Bank of North Dakota letters of credit were collateralized by loans pledged to the Bank of North Dakota in the amount of $230.2 million and $245.7 million as of June 30, 2021 and December 31, 2020, respectively.

Share-Based Compensation

Share-Based Compensation	6 Months Ended
	Jun. 30, 2021
Share-Based Compensation
Share-Based Compensation	NOTE 11 Share-Based Compensation The Company has granted equity awards pursuant to the Alerus Financial Corporation 2009 Stock Plan. The awards were in the form of restricted stock or restricted stock units and are considered to represent an element of employee compensation. Compensation expense for the awards is based on the fair value of Alerus Financial Corporation common stock at the time of grant. The value of awards that are expected to vest are amortized into expense over the vesting periods. The ability to grant awards under this plan has expired. 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. However, shares subject to an award shall not again be made available for issuance or delivery under the plan 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 plan authorizes the issuance of up to 1,100,000 shares of common stock. As of June 30, 2021, 37,789 stock awards and 91,302 restricted stock units had been issued under the plan. Compensation expense relating to awards under these plans was $761 thousand and $624 thousand for the three months ended June 30, 2021 and 2020, respectively. Compensation expense relating to awards under these plans was $1.3 million and $859 thousand for the six months ended June 30, 2021 and 2020, respectively. The following table presents the activity in the stock plans for the six months ended June 30, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2021 ​ Six months ended June 30, 2020 ​ ​ ​ ​ 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 325,030 $ 19.48 ​ 347,211 $ 18.64 Granted 66,664 ​ 26.63 ​ 77,846 ​ 19.53 Vested (88,382) ​ 21.38 ​ (86,137) ​ 16.15 Forfeited or cancelled — ​ — ​ (5,068) ​ 19.37 Outstanding at end of period ​ 303,312 ​ $ 20.49 ​ 333,852 ​ $ 19.48 ​ As of June 30, 2021, there was $3.6 million of unrecognized compensation expense related to non-vested awards granted under the plans. The expense is expected to be recognized over a weighted-average period of 2.85 years.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Taxes
Income Taxes	NOTE 12 Income Taxes The components of income tax expense (benefit) for the three and six months ended June 30, 2021 and 2020 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ ​ ​ 2021 ​ ​ 2020 ​ ​ ​ ​ Percent of ​ ​ Percent of (dollars in thousands) ​ Amount ​ Pretax Income ​ Amount ​ Pretax Income Taxes at statutory federal income tax rate ​ $ 3,221 21.0 % ​ $ 3,168 21.0 % Tax effect of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax exempt income ​ ​ (148) (1.0) % ​ ​ (127) (0.8) % Other ​ ​ 571 3.7 % ​ ​ 572 3.8 % Applicable income taxes ​ $ 3,644 ​ 23.7 % ​ $ 3,613 ​ 24.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, ​ ​ ​ 2021 ​ ​ 2020 ​ ​ ​ ​ Percent of ​ ​ Percent of (dollars in thousands) ​ Amount ​ Pretax Income ​ Amount ​ Pretax Income Taxes at statutory federal income tax rate ​ $ 7,395 21.0 % ​ $ 4,596 21.0 % Tax effect of: ​ ​ ​ ​ Tax exempt income ​ (301) (0.9) % ​ (247) (1.1) % Other ​ ​ 1,212 ​ 3.4 % ​ ​ 701 ​ 3.2 % Applicable income taxes ​ $ 8,306 23.5 % ​ $ 5,050 23.1 % ​ 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	6 Months Ended
	Jun. 30, 2021
Segment Reporting
Segment Reporting	NOTE 13 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 for each segment includes 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2021 ​ ​ ​ ​ ​ Retirement and ​ Wealth ​ ​ ​ ​ Corporate ​ ​ ​ (dollars in thousands) Banking Benefit Services Management Mortgage Administration Consolidated Net interest income ​ $ 21,188 ​ $ — ​ $ — ​ $ 490 ​ $ (538) ​ $ 21,140 Provision for loan losses ​ — ​ — ​ — ​ — ​ — ​ — Noninterest income ​ 1,466 ​ 17,871 ​ 5,138 ​ 12,287 ​ (14) ​ 36,748 Noninterest expense ​ 10,914 ​ 9,988 ​ 2,128 ​ 10,661 ​ 8,859 ​ 42,550 Net income before taxes ​ $ 11,740 ​ $ 7,883 ​ $ 3,010 ​ $ 2,116 ​ $ (9,411) ​ $ 15,338 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2021 ​ ​ ​ ​ ​ Retirement and ​ Wealth ​ ​ ​ ​ Corporate ​ ​ ​ (dollars in thousands) Banking Benefit Services Management Mortgage Administration Consolidated Net interest income ​ $ 43,068 ​ $ — ​ $ — ​ $ 936 ​ $ (826) ​ $ 43,178 Provision for loan losses ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Noninterest income ​ ​ 2,988 ​ ​ 35,126 ​ ​ 10,124 ​ ​ 29,419 ​ ​ (28) ​ ​ 77,629 Noninterest expense ​ ​ 21,998 ​ 20,100 ​ 4,463 ​ 21,514 ​ ​ 17,517 ​ ​ 85,592 Net income before taxes ​ $ 24,058 ​ $ 15,026 ​ $ 5,661 ​ $ 8,841 ​ $ (18,371) ​ $ 35,215 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2020 ​ ​ ​ ​ ​ Retirement and ​ Wealth ​ ​ ​ ​ Corporate ​ ​ ​ (dollars in thousands) Banking Benefit Services Management Mortgage Administration Consolidated Net interest income ​ $ 20,417 ​ $ — ​ $ — ​ $ 530 ​ $ (856) ​ $ 20,091 Provision for loan losses ​ ​ 3,500 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 3,500 Noninterest income ​ ​ 2,857 ​ ​ 13,710 ​ ​ 4,112 ​ ​ 17,546 ​ ​ 5 ​ ​ 38,230 Noninterest expense ​ ​ 11,359 ​ 9,193 ​ 2,629 ​ 8,020 ​ ​ 8,533 ​ ​ 39,734 Net income before taxes ​ $ 8,415 ​ $ 4,517 ​ $ 1,483 ​ $ 10,056 ​ $ (9,384) ​ $ 15,087 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2020 ​ ​ ​ ​ ​ Retirement and ​ Wealth ​ ​ ​ ​ Corporate ​ ​ ​ (dollars in thousands) Banking Benefit Services Management Mortgage Administration Consolidated Net interest income ​ $ 39,863 ​ $ — ​ $ — ​ $ 798 ​ $ (1,733) ​ $ 38,928 Provision for loan losses ​ 6,000 ​ — ​ — ​ — ​ — ​ 6,000 Noninterest income ​ 4,731 ​ 29,930 ​ 8,158 ​ 22,591 ​ 9 ​ 65,419 Noninterest expense ​ 24,011 ​ 17,125 ​ 4,144 ​ 13,459 ​ 17,721 ​ 76,460 Net income before taxes ​ $ 14,583 ​ $ 12,805 ​ $ 4,014 ​ $ 9,930 ​ $ (19,445) ​ $ 21,887 Banking The Banking division offers a complete line of loan, deposit, cash management, and treasury services through fourteen 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 segment’s 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 accounts, flex spending accounts, COBRA recordkeeping and administration services, and payroll to employers; and payroll and HRIS services for employers. In addition, the division operates within each of the banking markets, as well as in Lansing, Michigan and Littleton, Colorado. 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	6 Months Ended
	Jun. 30, 2021
Earnings Per Share
Earnings Per Share	NOTE 14 Earnings Per Share The calculation of basic and diluted earnings per share using the two-class method for the three and six months ending June 30, 2021 and 2020 are presented below: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Six months ended ​ ​ June 30, ​ June 30, (dollars and shares in thousands, except per share data) 2021 2020 2021 2020 Net income ​ $ 11,694 ​ $ 11,474 ​ $ 26,909 ​ $ 16,837 Dividends and undistributed earnings allocated to participating securities ​ ​ 179 ​ ​ 200 ​ ​ 432 ​ ​ 282 Net income available to common shareholders ​ $ 11,515 ​ $ 11,274 ​ $ 26,477 ​ $ 16,555 Weighted-average common shares outstanding for basic earnings per share ​ ​ 17,194 ​ ​ 17,111 ​ ​ 17,170 ​ 17,091 Dilutive effect of stock-based awards ​ ​ 303 ​ 334 ​ 312 ​ 334 Weighted-average common shares outstanding for diluted earnings per share ​ ​ 17,497 ​ ​ 17,445 ​ ​ 17,482 ​ ​ 17,425 Earnings per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings per common share ​ $ 0.67 ​ $ 0.66 ​ $ 1.54 ​ $ 0.97 Diluted earnings per common share ​ $ 0.66 ​ $ 0.65 ​ $ 1.52 ​ $ 0.95 ​

Derivative Instruments

Derivative Instruments	6 Months Ended
	Jun. 30, 2021
Derivative Instruments
Derivative Instruments	NOTE 15 Derivative Instruments The Company enters into interest rate swaps to facilitate client transactions and meet their financing needs. Upon entering into these instruments to meet client needs, the Company enters into offsetting positions with U.S. financial institutions in order to minimize risk to the Company. These swaps are derivatives but are not designated as hedging instruments. The Company did not have any derivatives designated as hedging instruments as of June 30, 2021 and December 31, 2020. The following table presents the amounts recorded in the Company’s consolidated balance sheets, for derivatives not designated as hedging instruments, as of June 30, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ December 31, 2020 ​ ​ ​ ​ Fair ​ Notional ​ Fair ​ Notional (dollars in thousands) ​ Value Amount Value Amount Asset Derivatives Consolidated Balance Sheet Location ​ ​ ​ ​ Interest rate swaps Other assets ​ $ 882 ​ $ 58,778 ​ $ 569 ​ $ 44,597 Interest rate lock commitments Other assets ​ ​ 4,696 ​ ​ 145,230 ​ ​ 10,124 ​ ​ 270,103 Forward loan sales commitments Other assets ​ 1,101 ​ 31,659 ​ 2,664 ​ 86,990 Total asset derivatives ​ $ 6,679 ​ $ 235,667 ​ $ 13,357 ​ $ 401,690 Liability Derivatives ​ ​ ​ ​ Interest rate swaps Accrued expenses and other liabilities ​ $ 961 ​ $ 58,778 ​ $ 572 ​ $ 44,597 TBA mortgage backed securities Accrued expenses and other liabilities ​ ​ 77 ​ ​ 237,000 ​ ​ 2,339 ​ ​ 307,000 Total liability derivatives ​ $ 1,038 ​ $ 295,778 ​ $ 2,911 ​ $ 351,597 ​ The gain (loss) recognized on derivative instruments for the three and six months ended June 30, 2021 and 2020 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Six months ended ​ ​ Consolidated Statements of ​ June 30, ​ June 30, ​ June 30, ​ June 30, (dollars in thousands) of Income Location 2021 2020 2021 2020 Interest rate swaps Other noninterest income ​ $ (1) ​ $ — ​ $ 1 ​ $ — Interest rate lock commitments Mortgage banking ​ ​ 740 ​ ​ 4,352 ​ ​ (5,505) ​ ​ 5,579 Forward loan sales commitments Mortgage banking ​ ​ 73 ​ ​ 117 ​ ​ (1,562) ​ ​ 783 TBA mortgage backed securities Mortgage banking ​ ​ (3,405) ​ ​ (1,929) ​ 5,556 ​ (5,352) Total gain/(loss) from derivative instruments ​ ​ $ (2,593) ​ $ 2,540 ​ $ (1,510) ​ $ 1,010 ​ ​ 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 June 30, 2021 and December 31, 2020 was $2.6 million and $2.7 million, respectively. The amount of collateral posted with third parties was deemed to be sufficient as of those dates to collateralize both the fair market value change as well as any additional amounts that may be required as a result of a change in the specified credit measures.

Regulatory Matters

Regulatory Matters	6 Months Ended
	Jun. 30, 2021
Regulatory Matters
Regulatory Matters	NOTE 16 Regulatory Matters The Company and the Bank are 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 consolidated financial statements. Quantitative measures established by regulation to ensure capital adequacy require the Company and 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 June 30, 2021 and December 31, 2020, each of the Company and the Bank had met all of the capital adequacy requirements to which it was subject. The following table presents the Company’s and the Bank’s actual capital amounts and ratios as of June 30, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ $ 290,330 14.30 % $ 91,349 4.50 % $ N/A N/A ​ Bank ​ 275,218 13.57 % 91,283 4.50 % 131,853 6.50 % Tier 1 capital to risk weighted assets ​ ​ . ​ Consolidated ​ 298,693 14.71 % 121,798 6.00 % N/A N/A ​ Bank ​ 275,218 13.57 % 121,711 6.00 % 162,281 8.00 % Total capital to risk weighted assets ​ ​ Consolidated ​ 374,172 18.43 % 162,398 8.00 % N/A N/A ​ Bank ​ 300,678 14.82 % 162,281 8.00 % 202,851 10.00 % Tier 1 capital to average assets ​ ​ Consolidated ​ 290,330 9.62 % 124,228 4.00 % N/A N/A ​ Bank ​ 275,218 8.98 % 122,656 4.00 % 153,320 5.00 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ $ 265,490 12.75 % $ 93,723 4.50 % $ N/A N/A ​ Bank ​ 251,806 12.10 % 93,632 4.50 % 135,246 6.50 % Tier 1 capital to risk weighted assets ​ ​ . ​ Consolidated ​ 273,797 13.15 % 124,964 6.00 % N/A N/A ​ Bank ​ 251,806 12.10 % 124,843 6.00 % 166,457 8.00 % Total capital to risk weighted assets ​ ​ Consolidated ​ 349,620 16.79 % 166,618 8.00 % N/A N/A ​ Bank ​ 277,916 13.36 % 166,457 8.00 % 208,071 10.00 % Tier 1 capital to average assets ​ ​ Consolidated ​ 273,797 9.24 % 118,587 4.00 % N/A N/A ​ Bank ​ 251,806 8.50 % 118,511 4.00 % 148,139 5.00 % ​ The Bank is subject to certain restrictions on the amount of dividends that it may pay without prior regulatory approval. The Company and the Bank are subject to the rules of the Basel III regulatory capital framework and related Dodd-Frank Wall Street Reform and Consumer Protection Act rules. The rules included the implementation of a 2.5 percent capital conservation buffer that is added to the minimum requirements for capital adequacy purposes. A banking organization with a conservation buffer of less than the required amount will be subject to the limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. At June 30, 2021, the ratios for the Company and the Bank were sufficient to meet the conservation buffer. 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 June 30, 2021, and December 31, 2020, the Company was in compliance with the aforementioned guidelines.

Stock Repurchase Program

Stock Repurchase Program	6 Months Ended
	Jun. 30, 2021
Stock Repurchase Program
Stock Repurchase Program	NOTE 17 Stock Repurchase Program On February 18, 2021, the Board of Directors of the Company approved a stock repurchase program, or the Program, which authorizes the Company to repurchase up to 770,000 shares of its common stock subject to certain limitations and conditions. The Program was effective immediately and will continue for a period of 36 months. The Program does not obligate the Company to repurchase any shares of its common stock and there is no assurance that the Company will do so. For the six months ended June 30, 2021, there were no shares repurchased under the Program. The Company also repurchases shares to pay withholding taxes on the vesting of restricted stock awards and units.

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	6 Months Ended
	Jun. 30, 2021
Fair Value of Assets and Liabilities
Fair Value of Assets and Liabilities	NOTE 18 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— Level 2— Level 3— 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. The following tables present the balances of the assets and liabilities measured at estimated fair value on a recurring basis as of June 30, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 (dollars in thousands) Level 1 Level 2 Level 3 Total Available-for-sale ​ ​ ​ ​ U.S. treasury and government agencies ​ $ — ​ $ 5,660 ​ $ — ​ $ 5,660 Mortgage backed securities ​ ​ ​ ​ Residential agency ​ — ​ 509,843 ​ — ​ 509,843 Commercial ​ — ​ 100,088 ​ — ​ 100,088 Asset backed securities ​ — ​ 72 ​ — ​ 72 Corporate bonds ​ — ​ 35,883 ​ — ​ 35,883 Total available-for-sale investment securities ​ $ — ​ $ 651,546 ​ $ — ​ $ 651,546 Other assets ​ ​ ​ ​ Derivatives ​ $ — ​ $ 6,679 ​ $ — ​ $ 6,679 Other liabilities ​ ​ ​ ​ Derivatives ​ $ — ​ $ 1,038 ​ $ — ​ $ 1,038 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 (dollars in thousands) Level 1 Level 2 Level 3 Total Available-for-sale ​ ​ ​ ​ U.S. treasury and government agencies ​ $ — ​ $ 5,907 ​ $ — ​ $ 5,907 Obligations of state and political agencies ​ — ​ 153,773 ​ — ​ 153,773 Mortgage backed securities ​ ​ ​ ​ Residential agency ​ — ​ 306,719 ​ — ​ 306,719 Commercial ​ — ​ 94,978 ​ — ​ 94,978 Asset backed securities ​ — ​ 115 ​ — ​ 115 Corporate bonds ​ — ​ 30,850 ​ — ​ 30,850 Total available-for-sale investment securities ​ $ — ​ $ 592,342 ​ $ — ​ $ 592,342 Other assets ​ ​ ​ ​ Derivatives ​ $ — ​ $ 13,357 ​ $ — ​ $ 13,357 Other liabilities ​ ​ ​ ​ Derivatives ​ $ — ​ $ 2,911 ​ $ — ​ $ 2,911 ​ 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, Available-for-Sale Generally, debt securities are valued using pricing for similar securities, recently executed transactions, and other pricing models utilizing observable inputs and therefore are classified as Level 2. 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. 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 related to nonrecurring estimated fair value measurements of certain assets as of June 30, 2021 and December 31, 2020 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 (dollars in thousands) Level 2 Level 3 Total Impairment Loans held for sale ​ $ 66,856 ​ $ — ​ $ 66,856 ​ $ — Impaired loans ​ — ​ 6,789 ​ 6,789 ​ 922 Foreclosed assets ​ — ​ 858 ​ 858 ​ — Servicing rights ​ — ​ 1,964 ​ 1,964 ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 (dollars in thousands) Level 2 Level 3 Total Impairment Loans held for sale ​ $ 122,440 ​ $ — ​ $ 122,440 ​ $ — Impaired loans ​ — ​ 7,325 ​ 7,325 ​ 1,205 Foreclosed assets ​ — ​ 63 ​ 63 ​ — Servicing rights ​ — ​ 1,987 ​ 1,987 ​ — ​ 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. 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. The valuation techniques and significant unobservable inputs used to measure Level 3 estimated fair values as of June 30, 2021, and December 31, 2020, were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ (dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ Asset Type Valuation Technique Unobservable Input Fair Value Range Average Impaired loans Appraisal value Property specific adjustment $ 6,789 N/A ​ N/A Foreclosed assets Appraisal value Property specific adjustment 858 N/A N/A Servicing rights Discounted cash flows Prepayment speed assumptions 1,964 210-348 287 ​ Discount rate 9.3 % 9.3 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ (dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Asset Type Valuation Technique Unobservable Input Fair Value Range Average Impaired loans Appraisal value Property specific adjustment $ 7,325 N/A N/A ​ Foreclosed assets Appraisal value Property specific adjustment 63 N/A N/A ​ Servicing rights Discounted cash flows Prepayment speed assumptions 1,987 191-403 285 ​ ​ Discount rate 9.0 % 9.0 % ​ 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, as of June 30, 2021 and December 31, 2020, were not carried at estimated fair value in their entirety on the consolidated balance sheets. Cash and Cash Equivalents and Accrued Interest The carrying amounts reported in the consolidated balance sheets approximate those assets and liabilities estimated fair values. Investment Securities, Held-to-Maturity The fair values of debt securities held-to-maturity are based on quoted market prices for the same or similar securities, recently executed transactions and pricing models. 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. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ Carrying ​ Estimated Fair Value (dollars in thousands) Amount Level 1 Level 2 Level 3 Total Financial Assets ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 315,430 ​ $ 315,430 ​ $ — ​ $ — ​ $ 315,430 Investment securities held-to-maturity ​ ​ 146,316 ​ ​ — ​ ​ 148,285 ​ ​ — ​ ​ 148,285 Loans ​ 1,801,548 ​ — ​ — ​ 1,847,706 ​ 1,847,706 Accrued interest receivable ​ 8,463 ​ 8,463 ​ — ​ — ​ 8,463 Bank-owned life insurance ​ 32,752 ​ — ​ 32,752 ​ — ​ 32,752 Financial Liabilities ​ ​ ​ ​ ​ Noninterest-bearing deposits ​ $ 758,820 ​ $ — ​ $ 758,820 ​ $ — ​ $ 758,820 Interest-bearing deposits ​ 1,746,311 ​ — ​ 1,746,311 ​ — ​ 1,746,311 Time deposits ​ 205,809 ​ — ​ — ​ 206,583 ​ 206,583 Long-term debt ​ 58,992 ​ — ​ 57,129 ​ — ​ 57,129 Accrued interest payable ​ 860 ​ 860 ​ — ​ — ​ 860 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ Carrying ​ Estimated Fair Value (dollars in thousands) Amount Level 1 Level 2 Level 3 Total Financial Assets ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 172,962 ​ $ 172,962 ​ $ — ​ $ — ​ $ 172,962 Loans ​ 1,945,129 ​ — ​ — ​ 1,992,394 ​ 1,992,394 Accrued interest receivable ​ 9,662 ​ 9,662 ​ — ​ — ​ 9,662 Bank-owned life insurance ​ 32,363 ​ — ​ 32,363 ​ — ​ 32,363 Financial Liabilities ​ ​ ​ ​ ​ Noninterest-bearing deposits ​ $ 754,716 ​ $ — ​ $ 754,716 ​ $ — ​ $ 754,716 Interest-bearing deposits ​ 1,607,939 ​ — ​ 1,607,939 ​ — ​ 1,607,939 Time deposits ​ 209,338 ​ — ​ — ​ 210,637 ​ 210,637 Long-term debt ​ 58,735 ​ — ​ 56,131 ​ — ​ 56,131 Accrued interest payable ​ 654 ​ 654 ​ — ​ — ​ 654 ​

COVID-19 Pandemic Response

COVID-19 Pandemic Response	6 Months Ended
	Jun. 30, 2021
COVID-19 Pandemic Response
COVID-19 Pandemic Response	NOTE 19 COVID-19 Pandemic Response As discussed in “Note 1 Significant Accounting Policies,” the full extent of the impact of COVID-19 on the U.S. economy generally and the Company is uncertain. In the second quarter of 2020, the Company became a lender under the PPP which was administered through the U.S. Small Business Administration, or SBA, an agency of the U.S Department of the Treasury, which works with financial institutions in providing loans to small businesses. The PPP, which is meant to aid small businesses during the COVID-19 pandemic, was created under the Coronavirus Aid Relief, and Economic Security, or CARES, Act, which was signed into law on March 27, 2020. In addition, the CARES Act provides financial institutions the option to temporarily suspend certain requirements under GAAP related to TDRs for a limited period of time to account for the effects of COVID-19. See “Note 4 Loans and Allowance for Loan Losses” for additional discussion regarding TDRs. As of June 30, 2021, the Company had assisted 2,454 new and existing clients secure a total of approximately $474.2 million of PPP financing. Net processing fees in the amount of $15.7 million are being deferred and recognized as interest income on a level yield method over the life of the respective loans. See “Note 4 Loans and Allowance for Loan Losses” for additional discussion on the remaining deferred costs associated with PPP financing.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Significant Accounting Policies
Organization	Organization Alerus Financial Corporation, or the Company, is a financial holding company organized under the laws of the state of Delaware. The Company and its subsidiaries operate as a diversified financial services company headquartered in Grand Forks, North Dakota. Through its subsidiary, Alerus Financial, National Association, or the Bank, the Company provides financial solutions to businesses and consumers through four distinct business lines—banking, retirement and benefit services, wealth management, and mortgage.
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements and notes thereto of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or SEC, and conform to practices within the banking industry and include all of the information and disclosures required by generally accepted accounting principles in the United States of America, or GAAP, for interim financial reporting. The accompanying unaudited consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair presentation of financial results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results for the full year or any other period. The Company has also evaluated all subsequent events for potential recognition and disclosure through the date of the filing of this Quarterly Report on Form 10-Q. These interim unaudited financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2020, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 12, 2021.
Principles of Consolidation	Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company’s principal operating subsidiary is the Bank. 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 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.
Reclassifications	Reclassifications Certain items previously reported have been reclassified to conform to the current period’s reporting format. Such reclassifications did not affect net income or stockholders’ equity.
Other Information	Other Information As of June 30, 2021, the Coronavirus Disease, or COVID-19, pandemic is ongoing. During 2020, the COVID-19 pandemic created disruption in global supply chains, increased rates of unemployment and adversely impacted many industries, including industries related to the collateral underlying certain of our loans. In 2021, the U.S. economy has, with certain setbacks, begun reopening and wider distribution of vaccines has encouraged greater economic activity. Nonetheless, the economic recovery could remain uneven, particularly given uncertainty with respect to the distribution and acceptance of the vaccines and their effectiveness with respect to new variants of the virus. Management believes the Company is taking appropriate actions to mitigate, to the extent possible, the negative impact. However, the full impact of COVID-19 is currently unknown and cannot be reasonably estimated as the events are continuing to unfold as the year progresses.
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, 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 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. 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.
Investment Securities	Investment Securities Held-to-maturity securities consist of debt securities, primarily obligations of state and political agencies. Held-to-maturity securities are carried at amortized cost based on the Company’s intent and ability to hold these securities to maturity. Interest earned on held-to-maturity debt securities is included in interest income. Amortization or accretion of premiums and discounts is also recognized in interest income using the effective interest method over the contractual life of the security and is adjusted to reflect actual prepayments. Transfers of debt securities from available-for-sale to held-to-maturity are made at fair value at the date of transfer. Unrealized holding gains and losses at the date of transfer are included in other comprehensive income and in the carrying value of the held-to-maturity security are amortized over the remaining life of the security.

Investment Securities (Tables)

Investment Securities (Tables)	6 Months Ended
	Jun. 30, 2021
Investment Securities
Schedule of amortized cost of investment securities to estimated fair values	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair (dollars in thousands) Cost ​ Gains ​ Losses Value Available-for-sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Treasury and agencies ​ $ 5,570 ​ $ 90 ​ $ — ​ $ 5,660 Mortgage backed securities ​ ​ ​ ​ ​ ​ ​ Residential agency ​ 512,904 ​ 2,961 ​ (6,022) ​ 509,843 Commercial ​ 95,744 ​ 4,344 ​ — ​ 100,088 Asset backed securities ​ 69 ​ 3 ​ — ​ 72 Corporate bonds ​ 35,040 ​ 1,107 ​ (264) ​ 35,883 Total available-for-sale investment securities ​ $ 649,327 ​ $ 8,505 ​ $ (6,286) ​ $ 651,546 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair (dollars in thousands) Cost ​ Gains ​ Losses Value Available-for-sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Treasury and agencies ​ $ 5,926 ​ $ — ​ $ (19) ​ $ 5,907 Obligations of state and political agencies ​ 148,491 ​ 5,282 ​ — ​ 153,773 Mortgage backed securities ​ ​ ​ ​ ​ ​ Residential agency ​ 303,760 ​ 3,395 ​ (436) ​ 306,719 Commercial ​ 89,300 ​ 5,678 ​ — ​ 94,978 Asset backed securities ​ 109 ​ 6 ​ — ​ 115 Corporate bonds ​ 30,552 ​ 388 ​ (90) ​ 30,850 Total available-for-sale investment securities ​ $ 578,138 ​ $ 14,749 ​ $ (545) ​ $ 592,342
Schedule of held to maturity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ Amortized ​ Net Unrealized ​ Carrying ​ Unrealized ​ Unrealized ​ Fair (dollars in thousands) ​ Cost ​ Gains (1) ​ Value ​ Gains (2) ​ Losses (2) ​ Value Held-to-maturity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Obligations of state and political agencies ​ $ 147,466 ​ $ 1,150 ​ $ 146,316 ​ $ 1,974 ​ $ (5) ​ $ 148,285 Total held-to-maturity investment securities ​ $ 147,466 ​ $ 1,150 ​ $ 146,316 ​ $ 1,974 ​ $ (5) ​ $ 148,285 (1) Net unrealized gains on held-to-maturity securities represents the net unrealized gains /(losses) on previously available-for-sale securities transferred to held-to-maturity at fair value and is being amortized through accumulated other comprehensive income over the remaining life of the securities. (2) Unrecognized gains and losses of held-to-maturity securities are not reflected in the financial statements, as they represent fair value fluctuations from the date of the security is designated as held-to-maturity.
Schedule of investment securities with gross unrealized losses	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ Less than 12 Months ​ Over 12 Months ​ Total ​ ​ Unrealized ​ Fair ​ Unrealized ​ Fair ​ Unrealized ​ Fair (dollars in thousands) Losses Value Losses Value Losses Value Available-for-sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Treasury and agencies ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — ​ $ — Mortgage backed securities ​ ​ ​ ​ ​ ​ Residential agency ​ (6,022) ​ 322,584 ​ — ​ — ​ (6,022) ​ 322,584 Commercial ​ — ​ — ​ — ​ — ​ — ​ — Asset backed securities ​ — ​ — ​ — ​ 2 ​ — ​ 2 Corporate bonds ​ (264) ​ 9,736 ​ — ​ — ​ (264) ​ 9,736 Total available-for-sale investment securities ​ $ (6,286) ​ $ 332,320 ​ $ — ​ $ 2 ​ $ (6,286) ​ $ 332,322 Held-to-maturity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Obligations of state and political agencies ​ $ (5) ​ $ 5,996 ​ $ — ​ $ — ​ $ (5) ​ $ 5,996 Total held-to-maturity investment securities ​ ​ (5) ​ ​ 5,996 ​ ​ — ​ ​ — ​ ​ (5) ​ ​ 5,996 Total investment securities ​ $ (6,291) ​ $ 338,316 ​ ​ — ​ ​ 2 ​ ​ (6,291) ​ ​ 338,318 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ Less than 12 Months ​ Over 12 Months ​ Total ​ ​ Unrealized ​ Fair ​ Unrealized ​ Fair ​ Unrealized ​ Fair (dollars in thousands) Losses Value Losses Value Losses Value Available-for-sale ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ U.S. Treasury and agencies ​ $ (10) ​ $ 4,509 ​ $ (9) ​ $ 1,309 ​ $ (19) ​ $ 5,818 Obligations of state and political agencies ​ — ​ — ​ — ​ — ​ — ​ — Mortgage backed securities ​ ​ ​ ​ ​ ​ Residential agency ​ (432) ​ 68,494 ​ (4) ​ 2,356 ​ (436) ​ 70,850 Commercial ​ — ​ — ​ — ​ — ​ — ​ — Asset backed securities ​ — ​ — ​ — ​ 2 ​ — ​ 2 Corporate bonds ​ (90) ​ 16,454 ​ — ​ — ​ (90) ​ 16,454 Total available-for-sale investment securities ​ $ (532) ​ $ 89,457 ​ $ (13) ​ $ 3,667 ​ $ (545) ​ $ 93,124
Schedule of contractual maturity of amortized cost and estimated fair value	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Held-to-maturity ​ Available-for-sale ​ ​ Carrying ​ Fair ​ Amortized ​ Fair (dollars in thousands) Value ​ Value ​ Cost Value Due within one year or less ​ $ 5,141 ​ $ 5,142 ​ $ — ​ $ — Due after one year through five years ​ 28,706 ​ 28,745 ​ 3,001 ​ 3,100 Due after five years through ten years ​ 76,714 ​ 77,812 ​ 86,721 ​ 89,886 Due after 10 years ​ 35,755 ​ 36,586 ​ 559,605 ​ 558,560 Total investment securities ​ $ 146,316 ​ $ 148,285 ​ $ 649,327 ​ $ 651,546
Schedule of proceeds from the sale of available for sale securities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Six months ended ​ ​ June 30, ​ June 30, (dollars in thousands) 2021 2020 2021 2020 Proceeds ​ $ — ​ $ 35,505 ​ $ 13,189 ​ $ 39,505 Realized gains ​ — ​ 1,294 ​ 114 ​ 1,294 Realized losses ​ — ​ — ​ — ​ —
Schedule of federal home loan bank	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, (dollars in thousands) 2021 2020 Federal Reserve ​ $ 2,675 ​ $ 2,675 FHLB ​ 3,839 ​ 3,090

Loans and Allowance for Loan _2

Loans and Allowance for Loan Losses (Tables)	6 Months Ended
	Jun. 30, 2021
Loans and Allowance for Loan Losses
Schedule of total loans outstanding by portfolio segment	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, (dollars in thousands) 2021 2020 Commercial ​ ​ ​ ​ ​ ​ Commercial and industrial (1) ​ $ 572,734 ​ $ 691,858 Real estate construction ​ 36,549 ​ 44,451 Commercial real estate ​ 567,987 ​ 563,007 Total commercial ​ 1,177,270 ​ 1,299,316 Consumer ​ ​ Residential real estate first mortgage ​ 470,822 ​ 463,370 Residential real estate junior lien ​ 130,180 ​ 143,416 Other revolving and installment ​ 57,040 ​ 73,273 Total consumer ​ 658,042 ​ 680,059 Total loans ​ $ 1,835,312 ​ $ 1,979,375 (1) Included Paycheck Protection Program, or PPP, loans of $165.0 million at June 30, 2021 and $268.4 million at December 31, 2020.
Schedule of past due aging analysis of the loan portfolio	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ ​ ​ ​ ​ ​ ​ 90 Days ​ ​ ​ ​ ​ ​ ​ ​ Accruing ​ 30 - 89 Days ​ or More ​ ​ ​ ​ Total (dollars in thousands) Current Past Due Past Due Nonaccrual Loans Commercial ​ ​ ​ ​ ​ Commercial and industrial ​ $ 570,287 ​ $ 312 ​ $ — ​ $ 2,135 ​ $ 572,734 Real estate construction ​ 36,549 ​ — ​ — ​ — ​ 36,549 Commercial real estate ​ 563,521 ​ — ​ — ​ 4,466 ​ 567,987 Total commercial ​ 1,170,357 ​ 312 ​ — ​ 6,601 ​ 1,177,270 Consumer ​ ​ ​ ​ ​ Residential real estate first mortgage ​ 469,273 ​ 1,526 ​ — ​ 23 ​ 470,822 Residential real estate junior lien ​ 129,698 ​ 159 ​ — ​ 323 ​ 130,180 Other revolving and installment ​ 56,757 ​ 270 ​ — ​ 13 ​ 57,040 Total consumer ​ 655,728 ​ 1,955 ​ — ​ 359 ​ 658,042 Total loans ​ $ 1,826,085 ​ $ 2,267 ​ $ — ​ $ 6,960 ​ $ 1,835,312 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ ​ ​ ​ ​ ​ ​ 90 Days ​ ​ ​ ​ ​ ​ ​ ​ Accruing ​ 30 - 89 Days ​ or More ​ ​ ​ ​ Total (dollars in thousands) Current Past Due Past Due Nonaccrual Loans Commercial ​ ​ ​ ​ ​ Commercial and industrial ​ $ 689,340 ​ $ 500 ​ $ 30 ​ $ 1,988 ​ $ 691,858 Real estate construction ​ 44,451 ​ — ​ — ​ — ​ 44,451 Commercial real estate ​ 558,127 ​ 2,449 ​ — ​ 2,431 ​ 563,007 Total commercial ​ 1,291,918 ​ 2,949 ​ 30 ​ 4,419 ​ 1,299,316 Consumer ​ ​ ​ ​ ​ Residential real estate first mortgage ​ 461,179 ​ 1,752 ​ — ​ 439 ​ 463,370 Residential real estate junior lien ​ 143,060 ​ 191 ​ — ​ 165 ​ 143,416 Other revolving and installment ​ 73,128 ​ 118 ​ — ​ 27 ​ 73,273 Total consumer ​ 677,367 ​ 2,061 ​ — ​ 631 ​ 680,059 Total loans ​ $ 1,969,285 ​ $ 5,010 ​ $ 30 ​ $ 5,050 ​ $ 1,979,375 ​
Schedule of loans outstanding, by portfolio segment and risk category	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ ​ ​ ​ Criticized ​ ​ ​ ​ ​ ​ ​ ​ Special ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) Pass Mention Substandard Doubtful Total Commercial ​ ​ ​ ​ ​ Commercial and industrial ​ $ 561,345 ​ $ 1,515 ​ $ 9,874 ​ $ — ​ $ 572,734 Real estate construction ​ 36,549 ​ — ​ — ​ — ​ 36,549 Commercial real estate ​ 542,417 ​ 3,339 ​ 22,231 ​ — ​ 567,987 Total commercial ​ ​ 1,140,311 ​ ​ 4,854 ​ ​ 32,105 ​ ​ — ​ ​ 1,177,270 Consumer ​ ​ ​ ​ ​ Residential real estate first mortgage ​ 469,037 ​ — ​ 1,785 ​ — ​ 470,822 Residential real estate junior lien ​ 128,661 ​ 395 ​ 1,124 ​ — ​ 130,180 Other revolving and installment ​ 57,027 ​ — ​ 13 ​ — ​ 57,040 Total consumer ​ 654,725 ​ 395 ​ 2,922 ​ — ​ 658,042 Total loans ​ $ 1,795,036 ​ $ 5,249 ​ $ 35,027 ​ $ — ​ $ 1,835,312 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ ​ ​ ​ Criticized ​ ​ ​ ​ ​ ​ ​ ​ Special ​ ​ ​ ​ ​ ​ ​ ​ ​ (dollars in thousands) Pass Mention Substandard Doubtful Total Commercial ​ ​ ​ ​ ​ Commercial and industrial ​ $ 669,602 ​ $ 5,415 ​ $ 16,841 ​ $ — ​ $ 691,858 Real estate construction ​ 44,451 ​ — ​ — ​ — ​ 44,451 Commercial real estate ​ 533,733 ​ 6,686 ​ 22,588 ​ — ​ 563,007 Total commercial ​ ​ 1,247,786 ​ ​ 12,101 ​ ​ 39,429 ​ ​ — ​ ​ 1,299,316 Consumer ​ ​ ​ ​ ​ Residential real estate first mortgage ​ 461,221 ​ 1,406 ​ 743 ​ — ​ 463,370 Residential real estate junior lien ​ 140,461 ​ 1,819 ​ 1,136 ​ — ​ 143,416 Other revolving and installment ​ 73,236 ​ — ​ 37 ​ — ​ 73,273 Total consumer ​ 674,918 ​ 3,225 ​ 1,916 ​ — ​ 680,059 Total loans ​ $ 1,922,704 ​ $ 15,326 ​ $ 41,345 ​ $ — ​ $ 1,979,375 ​
Summary of changes in allowances	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2021 ​ ​ Beginning ​ Provision for ​ Loan ​ Loan ​ Ending (dollars in thousands) Balance Loan Losses Charge-offs Recoveries Balance Commercial ​ ​ ​ ​ ​ Commercial and industrial ​ $ 10,487 ​ $ (869) ​ $ (273) ​ $ 275 ​ $ 9,620 Real estate construction ​ 598 ​ (11) ​ — ​ — ​ 587 Commercial real estate ​ 13,849 ​ (913) ​ — ​ 1 ​ 12,937 Total commercial ​ 24,934 ​ (1,793) ​ (273) ​ 276 ​ 23,144 Consumer ​ ​ ​ ​ ​ Residential real estate first mortgage ​ 6,047 ​ 129 ​ — ​ — ​ 6,176 Residential real estate junior lien ​ 1,288 ​ 99 ​ — ​ 14 ​ 1,401 Other revolving and installment ​ 666 ​ (81) ​ (49) ​ 38 ​ 574 Total consumer ​ 8,001 ​ 147 ​ (49) ​ 52 ​ 8,151 Unallocated ​ 823 ​ 1,646 ​ — ​ — ​ 2,469 Total ​ $ 33,758 ​ $ — ​ $ (322) ​ $ 328 ​ $ 33,764 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2021 ​ ​ Beginning ​ Provision for ​ Loan ​ Loan ​ Ending (dollars in thousands) Balance Loan Losses Charge-offs Recoveries Balance Commercial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ $ 10,205 ​ $ (553) ​ $ (477) ​ $ 445 ​ $ 9,620 Real estate construction ​ ​ 658 ​ ​ (71) ​ ​ — ​ ​ — ​ ​ 587 Commercial real estate ​ ​ 14,105 ​ ​ (636) ​ ​ (536) ​ ​ 4 ​ ​ 12,937 Total commercial ​ ​ 24,968 ​ ​ (1,260) ​ ​ (1,013) ​ ​ 449 ​ ​ 23,144 Consumer ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential real estate first mortgage ​ ​ 5,774 ​ ​ 402 ​ ​ — ​ ​ — ​ ​ 6,176 Residential real estate junior lien ​ ​ 1,373 ​ ​ (69) ​ ​ — ​ ​ 97 ​ ​ 1,401 Other revolving and installment ​ ​ 753 ​ ​ (164) ​ ​ (93) ​ ​ 78 ​ ​ 574 Total consumer ​ ​ 7,900 ​ ​ 169 ​ ​ (93) ​ ​ 175 ​ ​ 8,151 Unallocated ​ ​ 1,378 ​ ​ 1,091 ​ ​ — ​ ​ — ​ ​ 2,469 Total ​ $ 34,246 ​ $ — ​ $ (1,106) ​ $ 624 ​ $ 33,764 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2020 ​ ​ Beginning ​ Provision for ​ Loan ​ Loan ​ Ending (dollars in thousands) Balance Loan Losses Charge-offs Recoveries Balance Commercial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ $ 12,901 ​ $ 278 ​ $ (2,703) ​ $ 321 ​ $ 10,797 Real estate construction ​ ​ 334 ​ 109 ​ — ​ — ​ ​ 443 Commercial real estate ​ ​ 8,276 ​ 2,537 ​ (865) ​ — ​ ​ 9,948 Total commercial ​ ​ 21,511 ​ 2,924 ​ (3,568) ​ 321 ​ ​ 21,188 Consumer ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential real estate first mortgage ​ ​ 2,209 ​ 459 ​ — ​ 5 ​ ​ 2,673 Residential real estate junior lien ​ ​ 1,025 ​ 32 ​ (12) ​ 57 ​ ​ 1,102 Other revolving and installment ​ ​ 441 ​ 171 ​ (86) ​ 20 ​ ​ 546 Total consumer ​ ​ 3,675 ​ ​ 662 ​ ​ (98) ​ ​ 82 ​ ​ 4,321 Unallocated ​ ​ 1,833 ​ (86) ​ ​ — ​ ​ — ​ ​ 1,747 Total ​ $ 27,019 ​ $ 3,500 ​ $ (3,666) ​ $ 403 ​ $ 27,256 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2020 ​ ​ Beginning ​ Provision for ​ Loan ​ Loan ​ Ending (dollars in thousands) Balance Loan Losses Charge-offs Recoveries Balance Commercial ​ ​ ​ ​ ​ Commercial and industrial ​ $ 12,270 ​ $ 348 ​ $ (2,735) ​ $ 914 ​ $ 10,797 Real estate construction ​ 303 ​ 140 ​ — ​ — ​ 443 Commercial real estate ​ 6,688 ​ 4,125 ​ (865) ​ — ​ 9,948 Total commercial ​ 19,261 ​ 4,613 ​ (3,600) ​ 914 ​ 21,188 Consumer ​ ​ ​ ​ ​ ​ Residential real estate first mortgage ​ 1,448 ​ 1,220 ​ — ​ 5 ​ 2,673 Residential real estate junior lien ​ 671 ​ 349 ​ (12) ​ 94 ​ 1,102 Other revolving and installment ​ 352 ​ 263 ​ (153) ​ 84 ​ 546 Total consumer ​ 2,471 ​ 1,832 ​ (165) ​ 183 ​ 4,321 Unallocated ​ 2,192 ​ (445) ​ — ​ — ​ 1,747 Total ​ $ 23,924 ​ $ 6,000 ​ $ (3,765) ​ $ 1,097 ​ $ 27,256 ​
Schedule of loans distributed by portfolio segment and impairment methodology	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ Recorded Investment ​ Allowance for Loan Losses ​ ​ Individually ​ Collectively ​ ​ ​ ​ Individually ​ Collectively ​ ​ ​ (dollars in thousands) Evaluated Evaluated Total Evaluated Evaluated Total Commercial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ $ 2,696 ​ $ 570,038 ​ $ 572,734 ​ $ 885 ​ $ 8,735 ​ $ 9,620 Real estate construction ​ — ​ 36,549 ​ 36,549 ​ ​ — ​ ​ 587 ​ ​ 587 Commercial real estate ​ 4,653 ​ 563,334 ​ 567,987 ​ ​ 7 ​ ​ 12,930 ​ ​ 12,937 Total commercial ​ 7,349 ​ 1,169,921 ​ 1,177,270 ​ ​ 892 ​ ​ 22,252 ​ ​ 23,144 Consumer ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential real estate first mortgage ​ 23 ​ 470,799 ​ 470,822 ​ ​ — ​ ​ 6,176 ​ ​ 6,176 Residential real estate junior lien ​ 326 ​ 129,854 ​ 130,180 ​ ​ 27 ​ ​ 1,374 ​ ​ 1,401 Other revolving and installment ​ 13 ​ 57,027 ​ 57,040 ​ ​ 3 ​ ​ 571 ​ ​ 574 Total consumer ​ 362 ​ 657,680 ​ 658,042 ​ ​ 30 ​ ​ 8,121 ​ ​ 8,151 Unallocated ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 2,469 Total loans ​ $ 7,711 ​ $ 1,827,601 ​ $ 1,835,312 ​ $ 922 ​ $ 30,373 ​ $ 33,764 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ Recorded Investment ​ Allowance for Loan Losses ​ ​ Individually ​ Collectively ​ ​ ​ ​ Individually ​ Collectively ​ ​ ​ (dollars in thousands) Evaluated Evaluated Total Evaluated Evaluated Total Commercial ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ $ 2,616 ​ $ 689,242 ​ $ 691,858 ​ $ 336 ​ $ 9,869 ​ $ 10,205 Real estate construction ​ — ​ 44,451 ​ 44,451 ​ ​ — ​ ​ 658 ​ ​ 658 Commercial real estate ​ 5,224 ​ 557,783 ​ 563,007 ​ ​ 837 ​ ​ 13,268 ​ ​ 14,105 Total commercial ​ 7,840 ​ 1,291,476 ​ 1,299,316 ​ ​ 1,173 ​ ​ 23,795 ​ ​ 24,968 Consumer ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential real estate first mortgage ​ 439 ​ 462,931 ​ 463,370 ​ ​ — ​ ​ 5,774 ​ ​ 5,774 Residential real estate junior lien ​ 224 ​ ​ 143,192 ​ 143,416 ​ ​ 19 ​ ​ 1,354 ​ ​ 1,373 Other revolving and installment ​ 27 ​ 73,246 ​ 73,273 ​ ​ 13 ​ ​ 740 ​ ​ 753 Total consumer ​ 690 ​ 679,369 ​ 680,059 ​ ​ 32 ​ ​ 7,868 ​ ​ 7,900 Unallocated ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,378 Total loans ​ $ 8,530 ​ $ 1,970,845 ​ $ 1,979,375 ​ $ 1,205 ​ $ 31,663 ​ $ 34,246
Schedule of impaired loans	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 December 31, 2020 ​ ​ Recorded ​ Unpaid ​ Related Recorded ​ Unpaid ​ Related (dollars in thousands) Investment Principal Allowance Investment Principal Allowance Impaired loans with a valuation allowance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ $ 1,534 ​ $ 1,546 ​ $ 885 ​ $ 723 ​ $ 725 ​ $ 336 Commercial real estate ​ 187 ​ 211 ​ 7 ​ 3,948 ​ 3,974 ​ 837 Residential real estate junior lien ​ 27 ​ 28 ​ ​ 27 ​ ​ 19 ​ 20 ​ ​ 19 Other revolving and installment ​ 13 ​ 13 ​ 3 ​ ​ 27 ​ 27 ​ 13 Total impaired loans with a valuation allowance ​ ​ 1,761 ​ ​ 1,798 ​ ​ 922 ​ ​ 4,717 ​ ​ 4,746 ​ ​ 1,205 Impaired loans without a valuation allowance ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ ​ 1,162 ​ ​ 1,314 ​ ​ — ​ ​ 1,893 ​ ​ 2,173 ​ ​ — Commercial real estate ​ 4,466 ​ ​ 4,621 ​ — ​ ​ 1,276 ​ 1,415 ​ — Residential real estate first mortgage ​ 23 ​ 25 ​ — ​ ​ 439 ​ 464 ​ — Residential real estate junior lien ​ 299 ​ 325 ​ — ​ ​ 205 ​ 306 ​ — Other revolving and installment ​ — ​ — ​ — ​ ​ — ​ — ​ — Total impaired loans without a valuation allowance ​ ​ 5,950 ​ ​ 6,285 ​ ​ — ​ ​ 3,813 ​ ​ 4,358 ​ ​ — Total impaired loans ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ ​ 2,696 ​ ​ 2,860 ​ ​ 885 ​ ​ 2,616 ​ ​ 2,898 ​ ​ 336 Commercial real estate ​ 4,653 ​ 4,832 ​ 7 ​ 5,224 ​ 5,389 ​ 837 Residential real estate first mortgage ​ ​ 23 ​ ​ 25 ​ ​ — ​ ​ 439 ​ ​ 464 ​ ​ — Residential real estate junior lien ​ 326 ​ 353 ​ 27 ​ 224 ​ 326 ​ 19 Other revolving and installment ​ 13 ​ 13 ​ 3 ​ 27 ​ 27 ​ 13 Total impaired loans ​ $ 7,711 ​ $ 8,083 ​ $ 922 ​ $ 8,530 ​ $ 9,104 ​ $ 1,205 ​ The table below presents the average recorded investment in impaired loans and interest income for the three and six months ended June 30, 2021 and 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ ​ 2021 ​ 2020 ​ ​ Average ​ ​ ​ ​ Average ​ ​ ​ ​ ​ Recorded ​ Interest ​ Recorded ​ Interest (dollars in thousands) Investment Income Investment Income Impaired loans with a valuation allowance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ $ 1,548 ​ $ 3 ​ $ 4,881 ​ $ 15 Commercial real estate ​ ​ 188 ​ ​ 2 ​ ​ 200 ​ ​ 8 Residential real estate first mortgage ​ ​ — ​ ​ — ​ ​ — ​ ​ — Residential real estate junior lien ​ ​ 27 ​ ​ — ​ ​ 20 ​ ​ — Other revolving and installment ​ ​ 13 ​ ​ — ​ ​ 35 ​ ​ — Total impaired loans with a valuation allowance ​ ​ 1,776 ​ ​ 5 ​ ​ 5,136 ​ ​ 23 Impaired loans without a valuation allowance ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ ​ 1,174 ​ ​ 5 ​ ​ 694 ​ ​ 26 Commercial real estate ​ ​ 4,472 ​ ​ — ​ ​ 1,693 ​ ​ — Residential real estate first mortgage ​ ​ 23 ​ ​ — ​ ​ 755 ​ ​ — Residential real estate junior lien ​ ​ 302 ​ ​ — ​ ​ 255 ​ ​ 3 Other revolving and installment ​ ​ — ​ ​ — ​ ​ 4 ​ ​ — Total impaired loans without a valuation allowance ​ ​ 5,971 ​ ​ 5 ​ ​ 3,401 ​ ​ 29 Total impaired loans ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial and industrial ​ ​ 2,722 ​ ​ 8 ​ ​ 5,575 ​ ​ 41 Commercial real estate ​ ​ 4,660 ​ ​ 2 ​ ​ 1,893 ​ ​ 8 Residential real estate first mortgage ​ ​ 23 ​ ​ — ​ ​ 755 ​ ​ — Residential real estate junior lien ​ ​ 329 ​ ​ — ​ ​ 275 ​ ​ 3 Other revolving and installment ​ ​ 13 ​ ​ — ​ ​ 39 ​ ​ — Total impaired loans ​ $ 7,747 ​ $ 10 ​ $ 8,537 ​ $ 52 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, ​ ​ 2021 ​ 2020 ​ ​ Average ​ ​ ​ ​ Average ​ ​ ​ ​ ​ Recorded ​ Interest ​ Recorded ​ Interest (dollars in thousands) Investment Income Investment Income Impaired loans with a valuation allowance ​ ​ ​ ​ Commercial and industrial ​ $ 1,637 ​ $ 6 ​ $ 4,714 ​ $ 15 Commercial real estate ​ 190 ​ 4 ​ 203 ​ 8 Residential real estate junior lien ​ 30 ​ — ​ 20 ​ — Other revolving and installment ​ 14 ​ — ​ 35 ​ — Total impaired loans with a valuation allowance ​ ​ 1,871 ​ ​ 10 ​ ​ 4,972 ​ ​ 23 Impaired loans without a valuation allowance ​ ​ ​ ​ ​ Commercial and industrial ​ ​ 1,187 ​ ​ 11 ​ ​ 747 ​ ​ 26 Commercial real estate ​ 4,662 ​ — ​ 1,821 ​ — Residential real estate first mortgage ​ 24 ​ — ​ 761 ​ — Residential real estate junior lien ​ 303 ​ — ​ 279 ​ ​ 3 Other revolving and installment ​ — ​ — ​ 5 ​ — Total impaired loans without a valuation allowance ​ ​ 6,176 ​ ​ 11 ​ ​ 3,613 ​ ​ 29 Total impaired loans ​ ​ ​ ​ Commercial and industrial ​ ​ 2,824 ​ ​ 17 ​ ​ 5,461 ​ ​ 41 Commercial real estate ​ 4,852 ​ 4 ​ 2,024 ​ 8 Residential real estate first mortgage ​ 24 ​ — ​ 761 ​ — Residential real estate junior lien ​ 333 ​ — ​ 299 ​ 3 Other revolving and installment ​ 14 ​ — ​ 40 ​ — Total impaired loans ​ $ 8,047 ​ $ 21 ​ $ 8,585 ​ $ 52

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2021
Goodwill and Other Intangible Assets
Schedule of goodwill by segment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, (dollars in thousands) 2021 2020 Banking ​ $ 20,131 ​ $ 20,131 Retirement and benefit services ​ ​ 10,070 ​ ​ 10,070 Total goodwill ​ $ 30,201 ​ $ 30,201
Schedule of identifiable intangible assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ December 31, 2020 (dollars in thousands) Gross Carrying Amount Accumulated Amortization Total Gross Carrying Amount Accumulated Amortization Total Identifiable customer intangibles ​ $ 43,346 ​ $ (19,666) ​ $ 23,680 ​ $ 43,346 ​ $ (17,490) ​ $ 25,856 Core deposit intangible assets ​ ​ — ​ ​ — ​ ​ — ​ ​ 3,793 ​ ​ (3,730) ​ ​ 63 Total intangible assets ​ $ 43,346 ​ $ (19,666) ​ $ 23,680 ​ $ 47,139 ​ $ (21,220) ​ $ 25,919

Loan Servicing (Tables)

Loan Servicing (Tables)	6 Months Ended
	Jun. 30, 2021
Loan Servicing
Summary of activity related to loan servicing	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended Six months ended ​ ​ June 30, ​ June 30, (dollars in thousands) 2021 2020 2021 2020 Balance, beginning of period ​ $ 1,952 ​ $ 3,277 ​ $ 1,987 ​ $ 3,845 Additions ​ ​ 62 ​ ​ 88 ​ 111 ​ 112 Amortization ​ ​ (185) ​ ​ (209) ​ (385) ​ (396) (Impairment)/Recovery ​ ​ 135 ​ ​ (265) ​ 251 ​ (670) Balance, end of period ​ $ 1,964 ​ $ 2,891 ​ $ 1,964 ​ $ 2,891
Summary of key economic assumptions	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, (dollars in thousands) ​ 2021 ​ 2020 ​ Fair value of servicing rights ​ $ 1,964 ​ $ 1,987 ​ Weighted-average remaining term, years ​ 20.1 ​ 20.1 ​ Prepayment speeds ​ 17.2 % 17.7 % Discount rate ​ 9.3 % 9.0 %

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2021
Leases
Schedule of right-of-use assets and lease liabilities	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, (dollars in thousands) ​ 2021 2020 Lease Right-of-Use Assets ​ Classification ​ ​ ​ ​ ​ ​ Operating lease right-of-use assets Operating lease right-of-use assets ​ $ 4,203 ​ $ 6,918 Finance lease right-of-use assets Land, premises and equipment, net ​ 144 ​ 202 Total lease right-of-use assets ​ ​ ​ $ 4,347 ​ $ 7,120 Lease Liabilities ​ ​ ​ Operating lease liabilities Operating lease liabilities ​ $ 4,868 ​ $ 7,861 Finance lease liabilities Long-term debt ​ 319 ​ 430 Total lease liabilities ​ ​ ​ $ 5,187 ​ $ 8,291
Schedule of weighted average remaining lease term and average discount rate	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2021 2020 ​ Weighted-average remaining lease term, years ​ ​ ​ ​ ​ Operating leases 3.7 ​ 5.8 ​ Finance leases 1.3 ​ 1.8 ​ Weighted-average discount rate ​ ​ ​ Operating leases 2.5 % 2.9 % Finance leases 7.8 % 7.8 %
Schedule of lease costs and other lease information	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended Six months ended ​ ​ June 30, ​ June 30, (dollars in thousands) 2021 2020 2021 ​ 2020 Lease costs ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating lease cost ​ $ 492 ​ $ 568 ​ $ 988 ​ $ 1,191 Variable lease cost ​ ​ 158 ​ ​ 468 ​ 391 ​ 665 Short-term lease cost ​ ​ 46 ​ ​ 107 ​ 83 ​ 202 Finance lease cost ​ ​ ​ ​ ​ ​ ​ ​ Interest on lease liabilities ​ ​ 7 ​ ​ 11 ​ 15 ​ 23 Amortization of right-of-use assets ​ ​ 29 ​ ​ 29 ​ 58 ​ 58 Sublease income ​ ​ (52) ​ ​ (52) ​ (112) ​ (118) Net lease cost ​ $ 680 ​ $ 1,131 ​ $ 1,423 ​ $ 2,021 Other information ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash paid for amounts included in the measurement of lease liabilities operating cash flows from operating leases ​ $ 474 ​ $ 561 ​ $ 961 ​ $ 1,179 Right-of-use assets obtained in exchange for new operating lease liabilities ​ ​ — ​ ​ 1,348 ​ ​ — ​ 1,531
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 June 30, 2021 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance ​ Operating (dollars in thousands) Leases Leases Twelve months ended ​ ​ ​ ​ ​ ​ June 30, 2022 ​ $ 251 ​ $ 1,664 June 30, 2023 ​ 84 ​ 1,616 June 30, 2024 ​ — ​ 1,112 June 30, 2025 ​ — ​ 392 June 30, 2026 ​ — ​ 345 Thereafter ​ — ​ 326 Total future minimum lease payments ​ $ 335 ​ $ 5,455 Amounts representing interest ​ (16) ​ (587) Total operating lease liabilities ​ $ 319 ​ $ 4,868
Schedule of future minimum payments for operating leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance ​ Operating (dollars in thousands) Leases Leases Twelve months ended ​ ​ ​ ​ ​ ​ June 30, 2022 ​ $ 251 ​ $ 1,664 June 30, 2023 ​ 84 ​ 1,616 June 30, 2024 ​ — ​ 1,112 June 30, 2025 ​ — ​ 392 June 30, 2026 ​ — ​ 345 Thereafter ​ — ​ 326 Total future minimum lease payments ​ $ 335 ​ $ 5,455 Amounts representing interest ​ (16) ​ (587) Total operating lease liabilities ​ $ 319 ​ $ 4,868

Deposits (Tables)

Deposits (Tables)	6 Months Ended
	Jun. 30, 2021
Deposits.
Schedule of components of deposits	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, (dollars in thousands) 2021 2020 Noninterest-bearing ​ $ 758,820 ​ $ 754,716 Interest-bearing ​ ​ Interest-bearing demand ​ 736,043 ​ 618,900 Savings accounts ​ 89,437 ​ 79,902 Money market savings ​ 920,831 ​ 909,137 Time deposits ​ 205,809 ​ 209,338 Total interest-bearing ​ 1,952,120 ​ 1,817,277 Total deposits ​ $ 2,710,940 ​ $ 2,571,993

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2021
Long-Term Debt.
Schedule of long-term debt	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Period End ​ ​ ​ ​ ​ ​ Face ​ Carrying ​ ​ ​ Interest ​ Maturity ​ ​ (dollars in thousands) Value Value Interest Rate Rate Date Call Date Subordinated notes payable ​ $ 50,000 ​ $ 50,000 ​ Fixed ​ 3.50 % 3/30/2031 ​ 3/31/2026 Junior subordinated debenture (Trust I) ​ ​ 4,124 ​ ​ 3,470 Three-month LIBOR + 3.10% ​ 3.25 % 6/26/2033 6/26/2008 Junior subordinated debenture (Trust II) ​ 6,186 ​ 5,203 Three-month LIBOR + 1.80% ​ 1.92 % 9/15/2036 9/15/2011 Finance lease liability ​ 2,700 ​ 319 Fixed 7.81 % 10/31/2022 N/A Total long-term debt ​ $ 63,010 ​ $ 58,992 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Period End ​ ​ ​ ​ ​ ​ Face ​ Carrying ​ ​ ​ Interest ​ Maturity ​ ​ (dollars in thousands) Value Value Interest Rate Rate Date Call Date Subordinated notes payable ​ $ 50,000 ​ $ 49,688 Three-month LIBOR + 4.12% 4.36 % 12/30/2025 12/30/2020 Junior subordinated debenture (Trust I) ​ 4,124 ​ 3,447 Three-month LIBOR + 3.10% ​ 3.35 % 6/26/2033 6/26/2008 Junior subordinated debenture (Trust II) ​ 6,186 ​ 5,170 Three-month LIBOR + 1.80% ​ 2.02 % 9/15/2036 9/15/2011 Finance lease liability ​ 2,700 ​ 430 Fixed 7.81 % 10/31/2022 N/A Total long-term debt ​ $ 63,010 ​ $ 58,735

Financial Instruments with Of_2

Financial Instruments with Off-Balance Sheet Risk (Tables)	6 Months Ended
	Jun. 30, 2021
Financial Instruments with Off-Balance Sheet Risk
Schedule of financial instruments whose contract amount represents credit risk	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, (dollars in thousands) 2021 2020 Commitments to extend credit ​ $ 610,448 ​ $ 611,140 Standby letters of credit ​ 6,406 ​ 6,510 Total ​ $ 616,854 ​ $ 617,650

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2021
Share-Based Compensation
Schedule of stock plan activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2021 ​ Six months ended June 30, 2020 ​ ​ ​ ​ 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 325,030 $ 19.48 ​ 347,211 $ 18.64 Granted 66,664 ​ 26.63 ​ 77,846 ​ 19.53 Vested (88,382) ​ 21.38 ​ (86,137) ​ 16.15 Forfeited or cancelled — ​ — ​ (5,068) ​ 19.37 Outstanding at end of period ​ 303,312 ​ $ 20.49 ​ 333,852 ​ $ 19.48

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2021
Income Taxes
Schedule of effective income tax rate reconciliation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, ​ ​ ​ 2021 ​ ​ 2020 ​ ​ ​ ​ Percent of ​ ​ Percent of (dollars in thousands) ​ Amount ​ Pretax Income ​ Amount ​ Pretax Income Taxes at statutory federal income tax rate ​ $ 3,221 21.0 % ​ $ 3,168 21.0 % Tax effect of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Tax exempt income ​ ​ (148) (1.0) % ​ ​ (127) (0.8) % Other ​ ​ 571 3.7 % ​ ​ 572 3.8 % Applicable income taxes ​ $ 3,644 ​ 23.7 % ​ $ 3,613 ​ 24.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, ​ ​ ​ 2021 ​ ​ 2020 ​ ​ ​ ​ Percent of ​ ​ Percent of (dollars in thousands) ​ Amount ​ Pretax Income ​ Amount ​ Pretax Income Taxes at statutory federal income tax rate ​ $ 7,395 21.0 % ​ $ 4,596 21.0 % Tax effect of: ​ ​ ​ ​ Tax exempt income ​ (301) (0.9) % ​ (247) (1.1) % Other ​ ​ 1,212 ​ 3.4 % ​ ​ 701 ​ 3.2 % Applicable income taxes ​ $ 8,306 23.5 % ​ $ 5,050 23.1 % ​

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2021
Segment Reporting
Schedule of key metrics related to segments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2021 ​ ​ ​ ​ ​ Retirement and ​ Wealth ​ ​ ​ ​ Corporate ​ ​ ​ (dollars in thousands) Banking Benefit Services Management Mortgage Administration Consolidated Net interest income ​ $ 21,188 ​ $ — ​ $ — ​ $ 490 ​ $ (538) ​ $ 21,140 Provision for loan losses ​ — ​ — ​ — ​ — ​ — ​ — Noninterest income ​ 1,466 ​ 17,871 ​ 5,138 ​ 12,287 ​ (14) ​ 36,748 Noninterest expense ​ 10,914 ​ 9,988 ​ 2,128 ​ 10,661 ​ 8,859 ​ 42,550 Net income before taxes ​ $ 11,740 ​ $ 7,883 ​ $ 3,010 ​ $ 2,116 ​ $ (9,411) ​ $ 15,338 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2021 ​ ​ ​ ​ ​ Retirement and ​ Wealth ​ ​ ​ ​ Corporate ​ ​ ​ (dollars in thousands) Banking Benefit Services Management Mortgage Administration Consolidated Net interest income ​ $ 43,068 ​ $ — ​ $ — ​ $ 936 ​ $ (826) ​ $ 43,178 Provision for loan losses ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — Noninterest income ​ ​ 2,988 ​ ​ 35,126 ​ ​ 10,124 ​ ​ 29,419 ​ ​ (28) ​ ​ 77,629 Noninterest expense ​ ​ 21,998 ​ 20,100 ​ 4,463 ​ 21,514 ​ ​ 17,517 ​ ​ 85,592 Net income before taxes ​ $ 24,058 ​ $ 15,026 ​ $ 5,661 ​ $ 8,841 ​ $ (18,371) ​ $ 35,215 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended June 30, 2020 ​ ​ ​ ​ ​ Retirement and ​ Wealth ​ ​ ​ ​ Corporate ​ ​ ​ (dollars in thousands) Banking Benefit Services Management Mortgage Administration Consolidated Net interest income ​ $ 20,417 ​ $ — ​ $ — ​ $ 530 ​ $ (856) ​ $ 20,091 Provision for loan losses ​ ​ 3,500 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 3,500 Noninterest income ​ ​ 2,857 ​ ​ 13,710 ​ ​ 4,112 ​ ​ 17,546 ​ ​ 5 ​ ​ 38,230 Noninterest expense ​ ​ 11,359 ​ 9,193 ​ 2,629 ​ 8,020 ​ ​ 8,533 ​ ​ 39,734 Net income before taxes ​ $ 8,415 ​ $ 4,517 ​ $ 1,483 ​ $ 10,056 ​ $ (9,384) ​ $ 15,087 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended June 30, 2020 ​ ​ ​ ​ ​ Retirement and ​ Wealth ​ ​ ​ ​ Corporate ​ ​ ​ (dollars in thousands) Banking Benefit Services Management Mortgage Administration Consolidated Net interest income ​ $ 39,863 ​ $ — ​ $ — ​ $ 798 ​ $ (1,733) ​ $ 38,928 Provision for loan losses ​ 6,000 ​ — ​ — ​ — ​ — ​ 6,000 Noninterest income ​ 4,731 ​ 29,930 ​ 8,158 ​ 22,591 ​ 9 ​ 65,419 Noninterest expense ​ 24,011 ​ 17,125 ​ 4,144 ​ 13,459 ​ 17,721 ​ 76,460 Net income before taxes ​ $ 14,583 ​ $ 12,805 ​ $ 4,014 ​ $ 9,930 ​ $ (19,445) ​ $ 21,887

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings Per Share
Schedule of basic and diluted earnings per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Six months ended ​ ​ June 30, ​ June 30, (dollars and shares in thousands, except per share data) 2021 2020 2021 2020 Net income ​ $ 11,694 ​ $ 11,474 ​ $ 26,909 ​ $ 16,837 Dividends and undistributed earnings allocated to participating securities ​ ​ 179 ​ ​ 200 ​ ​ 432 ​ ​ 282 Net income available to common shareholders ​ $ 11,515 ​ $ 11,274 ​ $ 26,477 ​ $ 16,555 Weighted-average common shares outstanding for basic earnings per share ​ ​ 17,194 ​ ​ 17,111 ​ ​ 17,170 ​ 17,091 Dilutive effect of stock-based awards ​ ​ 303 ​ 334 ​ 312 ​ 334 Weighted-average common shares outstanding for diluted earnings per share ​ ​ 17,497 ​ ​ 17,445 ​ ​ 17,482 ​ ​ 17,425 Earnings per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings per common share ​ $ 0.67 ​ $ 0.66 ​ $ 1.54 ​ $ 0.97 Diluted earnings per common share ​ $ 0.66 ​ $ 0.65 ​ $ 1.52 ​ $ 0.95

Derivative Instruments (Tables)

Derivative Instruments (Tables)	6 Months Ended
	Jun. 30, 2021
Derivative Instruments
Schedule of amounts recorded in the Company's consolidated balance sheets for derivatives not designated as hedging instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ December 31, 2020 ​ ​ ​ ​ Fair ​ Notional ​ Fair ​ Notional (dollars in thousands) ​ Value Amount Value Amount Asset Derivatives Consolidated Balance Sheet Location ​ ​ ​ ​ Interest rate swaps Other assets ​ $ 882 ​ $ 58,778 ​ $ 569 ​ $ 44,597 Interest rate lock commitments Other assets ​ ​ 4,696 ​ ​ 145,230 ​ ​ 10,124 ​ ​ 270,103 Forward loan sales commitments Other assets ​ 1,101 ​ 31,659 ​ 2,664 ​ 86,990 Total asset derivatives ​ $ 6,679 ​ $ 235,667 ​ $ 13,357 ​ $ 401,690 Liability Derivatives ​ ​ ​ ​ Interest rate swaps Accrued expenses and other liabilities ​ $ 961 ​ $ 58,778 ​ $ 572 ​ $ 44,597 TBA mortgage backed securities Accrued expenses and other liabilities ​ ​ 77 ​ ​ 237,000 ​ ​ 2,339 ​ ​ 307,000 Total liability derivatives ​ $ 1,038 ​ $ 295,778 ​ $ 2,911 ​ $ 351,597
Schedule of gain (loss) recognized on derivatives instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended ​ Six months ended ​ ​ Consolidated Statements of ​ June 30, ​ June 30, ​ June 30, ​ June 30, (dollars in thousands) of Income Location 2021 2020 2021 2020 Interest rate swaps Other noninterest income ​ $ (1) ​ $ — ​ $ 1 ​ $ — Interest rate lock commitments Mortgage banking ​ ​ 740 ​ ​ 4,352 ​ ​ (5,505) ​ ​ 5,579 Forward loan sales commitments Mortgage banking ​ ​ 73 ​ ​ 117 ​ ​ (1,562) ​ ​ 783 TBA mortgage backed securities Mortgage banking ​ ​ (3,405) ​ ​ (1,929) ​ 5,556 ​ (5,352) Total gain/(loss) from derivative instruments ​ ​ $ (2,593) ​ $ 2,540 ​ $ (1,510) ​ $ 1,010

Regulatory Matters (Tables)

Regulatory Matters (Tables)	6 Months Ended
	Jun. 30, 2021
Regulatory Matters
Schedule of Bank's actual capital amounts and ratios	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ $ 290,330 14.30 % $ 91,349 4.50 % $ N/A N/A ​ Bank ​ 275,218 13.57 % 91,283 4.50 % 131,853 6.50 % Tier 1 capital to risk weighted assets ​ ​ . ​ Consolidated ​ 298,693 14.71 % 121,798 6.00 % N/A N/A ​ Bank ​ 275,218 13.57 % 121,711 6.00 % 162,281 8.00 % Total capital to risk weighted assets ​ ​ Consolidated ​ 374,172 18.43 % 162,398 8.00 % N/A N/A ​ Bank ​ 300,678 14.82 % 162,281 8.00 % 202,851 10.00 % Tier 1 capital to average assets ​ ​ Consolidated ​ 290,330 9.62 % 124,228 4.00 % N/A N/A ​ Bank ​ 275,218 8.98 % 122,656 4.00 % 153,320 5.00 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ $ 265,490 12.75 % $ 93,723 4.50 % $ N/A N/A ​ Bank ​ 251,806 12.10 % 93,632 4.50 % 135,246 6.50 % Tier 1 capital to risk weighted assets ​ ​ . ​ Consolidated ​ 273,797 13.15 % 124,964 6.00 % N/A N/A ​ Bank ​ 251,806 12.10 % 124,843 6.00 % 166,457 8.00 % Total capital to risk weighted assets ​ ​ Consolidated ​ 349,620 16.79 % 166,618 8.00 % N/A N/A ​ Bank ​ 277,916 13.36 % 166,457 8.00 % 208,071 10.00 % Tier 1 capital to average assets ​ ​ Consolidated ​ 273,797 9.24 % 118,587 4.00 % N/A N/A ​ Bank ​ 251,806 8.50 % 118,511 4.00 % 148,139 5.00 %

Fair Value of Assets and Liab_2

Fair Value of Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2021
Fair Value of Assets and Liabilities
Summary of balances of the assets and liabilities measured at estimated fair value on a recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 (dollars in thousands) Level 1 Level 2 Level 3 Total Available-for-sale ​ ​ ​ ​ U.S. treasury and government agencies ​ $ — ​ $ 5,660 ​ $ — ​ $ 5,660 Mortgage backed securities ​ ​ ​ ​ Residential agency ​ — ​ 509,843 ​ — ​ 509,843 Commercial ​ — ​ 100,088 ​ — ​ 100,088 Asset backed securities ​ — ​ 72 ​ — ​ 72 Corporate bonds ​ — ​ 35,883 ​ — ​ 35,883 Total available-for-sale investment securities ​ $ — ​ $ 651,546 ​ $ — ​ $ 651,546 Other assets ​ ​ ​ ​ Derivatives ​ $ — ​ $ 6,679 ​ $ — ​ $ 6,679 Other liabilities ​ ​ ​ ​ Derivatives ​ $ — ​ $ 1,038 ​ $ — ​ $ 1,038 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 (dollars in thousands) Level 1 Level 2 Level 3 Total Available-for-sale ​ ​ ​ ​ U.S. treasury and government agencies ​ $ — ​ $ 5,907 ​ $ — ​ $ 5,907 Obligations of state and political agencies ​ — ​ 153,773 ​ — ​ 153,773 Mortgage backed securities ​ ​ ​ ​ Residential agency ​ — ​ 306,719 ​ — ​ 306,719 Commercial ​ — ​ 94,978 ​ — ​ 94,978 Asset backed securities ​ — ​ 115 ​ — ​ 115 Corporate bonds ​ — ​ 30,850 ​ — ​ 30,850 Total available-for-sale investment securities ​ $ — ​ $ 592,342 ​ $ — ​ $ 592,342 Other assets ​ ​ ​ ​ Derivatives ​ $ — ​ $ 13,357 ​ $ — ​ $ 13,357 Other liabilities ​ ​ ​ ​ Derivatives ​ $ — ​ $ 2,911 ​ $ — ​ $ 2,911
Schedule of net impairment losses related to nonrecurring estimated fair value measurements of certain assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 (dollars in thousands) Level 2 Level 3 Total Impairment Loans held for sale ​ $ 66,856 ​ $ — ​ $ 66,856 ​ $ — Impaired loans ​ — ​ 6,789 ​ 6,789 ​ 922 Foreclosed assets ​ — ​ 858 ​ 858 ​ — Servicing rights ​ — ​ 1,964 ​ 1,964 ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 (dollars in thousands) Level 2 Level 3 Total Impairment Loans held for sale ​ $ 122,440 ​ $ — ​ $ 122,440 ​ $ — Impaired loans ​ — ​ 7,325 ​ 7,325 ​ 1,205 Foreclosed assets ​ — ​ 63 ​ 63 ​ — Servicing rights ​ — ​ 1,987 ​ 1,987 ​ —
Schedule of valuation techniques and significant unobservable inputs used to measure Level 3 estimated fair values	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ (dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ Asset Type Valuation Technique Unobservable Input Fair Value Range Average Impaired loans Appraisal value Property specific adjustment $ 6,789 N/A ​ N/A Foreclosed assets Appraisal value Property specific adjustment 858 N/A N/A Servicing rights Discounted cash flows Prepayment speed assumptions 1,964 210-348 287 ​ Discount rate 9.3 % 9.3 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ (dollars in thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted Asset Type Valuation Technique Unobservable Input Fair Value Range Average Impaired loans Appraisal value Property specific adjustment $ 7,325 N/A N/A ​ Foreclosed assets Appraisal value Property specific adjustment 63 N/A N/A ​ Servicing rights Discounted cash flows Prepayment speed assumptions 1,987 191-403 285 ​ ​ Discount rate 9.0 % 9.0 % ​
Summary of estimated fair values and related carrying or notional amounts, of the Company's financial instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2021 ​ ​ Carrying ​ Estimated Fair Value (dollars in thousands) Amount Level 1 Level 2 Level 3 Total Financial Assets ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 315,430 ​ $ 315,430 ​ $ — ​ $ — ​ $ 315,430 Investment securities held-to-maturity ​ ​ 146,316 ​ ​ — ​ ​ 148,285 ​ ​ — ​ ​ 148,285 Loans ​ 1,801,548 ​ — ​ — ​ 1,847,706 ​ 1,847,706 Accrued interest receivable ​ 8,463 ​ 8,463 ​ — ​ — ​ 8,463 Bank-owned life insurance ​ 32,752 ​ — ​ 32,752 ​ — ​ 32,752 Financial Liabilities ​ ​ ​ ​ ​ Noninterest-bearing deposits ​ $ 758,820 ​ $ — ​ $ 758,820 ​ $ — ​ $ 758,820 Interest-bearing deposits ​ 1,746,311 ​ — ​ 1,746,311 ​ — ​ 1,746,311 Time deposits ​ 205,809 ​ — ​ — ​ 206,583 ​ 206,583 Long-term debt ​ 58,992 ​ — ​ 57,129 ​ — ​ 57,129 Accrued interest payable ​ 860 ​ 860 ​ — ​ — ​ 860 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2020 ​ ​ Carrying ​ Estimated Fair Value (dollars in thousands) Amount Level 1 Level 2 Level 3 Total Financial Assets ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 172,962 ​ $ 172,962 ​ $ — ​ $ — ​ $ 172,962 Loans ​ 1,945,129 ​ — ​ — ​ 1,992,394 ​ 1,992,394 Accrued interest receivable ​ 9,662 ​ 9,662 ​ — ​ — ​ 9,662 Bank-owned life insurance ​ 32,363 ​ — ​ 32,363 ​ — ​ 32,363 Financial Liabilities ​ ​ ​ ​ ​ Noninterest-bearing deposits ​ $ 754,716 ​ $ — ​ $ 754,716 ​ $ — ​ $ 754,716 Interest-bearing deposits ​ 1,607,939 ​ — ​ 1,607,939 ​ — ​ 1,607,939 Time deposits ​ 209,338 ​ — ​ — ​ 210,637 ​ 210,637 Long-term debt ​ 58,735 ​ — ​ 56,131 ​ — ​ 56,131 Accrued interest payable ​ 654 ​ 654 ​ — ​ — ​ 654

Significant Accounting Polici_3

Significant Accounting Policies (Details)	6 Months Ended
	Jun. 30, 2021segment
Significant Accounting Policies
Number of operating segments	4

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	Apr. 01, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Investment securities available-for-sale
Amortized Cost			$ 649,327		$ 578,138
Unrealized Gains			8,505		14,749
Unrealized Losses			(6,286)		(545)
Fair Value			651,546		592,342
Amortized Cost			147,466
Net Unrealized Gains			1,150
Carrying Value			146,316
Unrealized Gains			1,974
Unrealized Losses			(5)
Fair Value			148,285
Reclassification adjustment for losses (gains) realized in income		$ 1,294	114	$ 1,294
U. S. Treasury and agencies
Investment securities available-for-sale
Amortized Cost			5,570		5,926
Unrealized Gains			90
Unrealized Losses					(19)
Fair Value			5,660		5,907
Obligations of state and political agencies
Investment securities available-for-sale
Amortized Cost					148,491
Unrealized Gains					5,282
Fair Value					153,773
Amortized Cost			147,466
Net Unrealized Gains			1,150
Carrying Value			146,316
Unrealized Gains			1,974
Unrealized Losses			(5)
Fair Value			148,285
Fair value of debt securities available-for-sale transferred to held-to-maturity	$ 149,200
Reclassification adjustment for losses (gains) realized in income	$ 1,300
Mortgage backed securities - Residential agency
Investment securities available-for-sale
Amortized Cost			512,904		303,760
Unrealized Gains			2,961		3,395
Unrealized Losses			(6,022)		(436)
Fair Value			509,843		306,719
Mortgage backed securities - Commercial
Investment securities available-for-sale
Amortized Cost			95,744		89,300
Unrealized Gains			4,344		5,678
Fair Value			100,088		94,978
Asset backed securities
Investment securities available-for-sale
Amortized Cost			69		109
Unrealized Gains			3		6
Fair Value			72		115
Corporate bonds
Investment securities available-for-sale
Amortized Cost			35,040		30,552
Unrealized Gains			1,107		388
Unrealized Losses			(264)		(90)
Fair Value			$ 35,883		$ 30,850

Investment Securities - Gross u

Investment Securities - Gross unrealized losses (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Investment securities available-for-sale
Unrealized losses less than 12 months	$ (6,286)	$ (532)
Fair value less than 12 months	332,320	89,457
Unrealized losses over 12 months		(13)
Fair value over 12 months	2	3,667
Total Unrealized losses	(6,286)	(545)
Total Fair value	332,322	93,124
Held-to-maturity investment securities
Unrealized losses less than 12 months	(5)
Fair value less than 12 months	5,996
Total Unrealized losses	(5)
Total Fair value	5,996
Unrealized losses less than 12 months	(6,291)
Fair value less than 12 months	338,316
Fair value over 12 months	2
Total Unrealized losses	(6,291)
Total Fair value	338,318
U. S. Treasury and agencies
Investment securities available-for-sale
Unrealized losses less than 12 months		(10)
Fair value less than 12 months		4,509
Unrealized losses over 12 months		(9)
Fair value over 12 months		1,309
Total Unrealized losses		(19)
Total Fair value		5,818
Obligations of state and political agencies
Held-to-maturity investment securities
Unrealized losses less than 12 months	(5)
Fair value less than 12 months	5,996
Total Unrealized losses	(5)
Total Fair value	5,996
Mortgage backed securities - Residential agency
Investment securities available-for-sale
Unrealized losses less than 12 months	(6,022)	(432)
Fair value less than 12 months	322,584	68,494
Unrealized losses over 12 months		(4)
Fair value over 12 months		2,356
Total Unrealized losses	(6,022)	(436)
Total Fair value	322,584	70,850
Asset backed securities
Investment securities available-for-sale
Fair value over 12 months	2	2
Total Fair value	2	2
Corporate bonds
Investment securities available-for-sale
Unrealized losses less than 12 months	(264)	(90)
Fair value less than 12 months	9,736	16,454
Total Unrealized losses	(264)	(90)
Total Fair value	$ 9,736	$ 16,454

Investment Securities - Amortiz

Investment Securities - Amortized cost and estimated fair value (Details) $ in Thousands	Jun. 30, 2021USD ($)
Carrying Value
Due within one year or less	$ 5,141
Due after one year through five years	28,706
Due after five years through ten years	76,714
Due after 10 years	35,755
Total investment securities	146,316
Estimated Fair Value
Due within one year or less	5,142
Due after one year through five years	28,745
Due after five years through ten years	77,812
Due after 10 years	36,586
Total investment securities	148,285
Amortized Cost
Due after one year through five years	3,001
Due after five years through ten years	86,721
Due after 10 years	559,605
Total investment securities available-for-sale	649,327
Fair Value
Due after one year through five years	3,100
Due after five years through ten years	89,886
Due after 10 years	558,560
Total investment securities available-for-sale	$ 651,546

Investment Securities - Pledged

Investment Securities - Pledged (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Investment Securities
Investment securities with carrying value	$ 171.4	$ 160.8

Investment Securities - Proceed

Investment Securities - Proceeds from sale of available for sale securities (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Investment Securities
Proceeds	$ 35,505	$ 13,189	$ 39,505
Realized gains	$ 1,294	$ 114	$ 1,294

Investment Securities - Carryin

Investment Securities - Carrying value (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Investment Securities
Federal Reserve	$ 2,675	$ 2,675
FHLB	$ 3,839	$ 3,090

Investment Securities - Visa Cl

Investment Securities - Visa Class B Restricted Shares (Details) - Visa $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)shares	Dec. 31, 2020USD ($)
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	Jun. 30, 2021	Dec. 31, 2020
Loans and Allowance for Loan Losses
Total loans	$ 1,835,312	$ 1,979,375
Deferred loan fees and costs	4,400	4,700
Commercial
Loans and Allowance for Loan Losses
Total loans	1,177,270	1,299,316
Consumer
Loans and Allowance for Loan Losses
Total loans	658,042	680,059
Commercial and industrial | Commercial
Loans and Allowance for Loan Losses
Total loans	572,734	691,858
Commercial and industrial | Commercial | PPP Loans
Loans and Allowance for Loan Losses
Total loans	165,000	268,400
Deferred loan fees and costs	4,600	4,300
Real estate construction | Commercial
Loans and Allowance for Loan Losses
Total loans	36,549	44,451
Residential | Consumer | Real estate first mortgage
Loans and Allowance for Loan Losses
Total loans	470,822	463,370
Residential | Consumer | Real estate junior lien
Loans and Allowance for Loan Losses
Total loans	130,180	143,416
Commercial real estate | Commercial
Loans and Allowance for Loan Losses
Total loans	567,987	563,007
Other revolving and installment | Consumer
Loans and Allowance for Loan Losses
Total loans	$ 57,040	$ 73,273

Loans and Allowance for Loan _4

Loans and Allowance for Loan Losses - Past due aging analysis (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Past due aging analysis of loans
Accruing Current	$ 1,826,085	$ 1,969,285
Nonaccrual	6,960	5,050
Loans and Leases Receivable, Gross, Total	1,835,312	1,979,375
30 - 89 Days Past Due
Past due aging analysis of loans
Past due	2,267	5,010
90 Days or More Past Due
Past due aging analysis of loans
Past due		30
Commercial
Past due aging analysis of loans
Accruing Current	1,170,357	1,291,918
Nonaccrual	6,601	4,419
Loans and Leases Receivable, Gross, Total	1,177,270	1,299,316
Commercial | 30 - 89 Days Past Due
Past due aging analysis of loans
Past due	312	2,949
Commercial | 90 Days or More Past Due
Past due aging analysis of loans
Past due		30
Commercial | Commercial and industrial
Past due aging analysis of loans
Accruing Current	570,287	689,340
Nonaccrual	2,135	1,988
Loans and Leases Receivable, Gross, Total	572,734	691,858
Commercial | Commercial and industrial | 30 - 89 Days Past Due
Past due aging analysis of loans
Past due	312	500
Commercial | Commercial and industrial | 90 Days or More Past Due
Past due aging analysis of loans
Past due		30
Commercial | Real estate construction
Past due aging analysis of loans
Accruing Current	36,549	44,451
Loans and Leases Receivable, Gross, Total	36,549	44,451
Commercial | Commercial real estate
Past due aging analysis of loans
Accruing Current	563,521	558,127
Nonaccrual	4,466	2,431
Loans and Leases Receivable, Gross, Total	567,987	563,007
Commercial | Commercial real estate | 30 - 89 Days Past Due
Past due aging analysis of loans
Past due		2,449
Consumer
Past due aging analysis of loans
Accruing Current	655,728	677,367
Nonaccrual	359	631
Loans and Leases Receivable, Gross, Total	658,042	680,059
Consumer | 30 - 89 Days Past Due
Past due aging analysis of loans
Past due	1,955	2,061
Consumer | Residential | Real estate first mortgage
Past due aging analysis of loans
Accruing Current	469,273	461,179
Nonaccrual	23	439
Loans and Leases Receivable, Gross, Total	470,822	463,370
Consumer | Residential | Real estate first mortgage | 30 - 89 Days Past Due
Past due aging analysis of loans
Past due	1,526	1,752
Consumer | Residential | Real estate junior lien
Past due aging analysis of loans
Accruing Current	129,698	143,060
Nonaccrual	323	165
Loans and Leases Receivable, Gross, Total	130,180	143,416
Consumer | Residential | Real estate junior lien | 30 - 89 Days Past Due
Past due aging analysis of loans
Past due	159	191
Consumer | Other revolving and installment
Past due aging analysis of loans
Accruing Current	56,757	73,128
Nonaccrual	13	27
Loans and Leases Receivable, Gross, Total	57,040	73,273
Consumer | Other revolving and installment | 30 - 89 Days Past Due
Past due aging analysis of loans
Past due	$ 270	$ 118

Loans and Allowance for Loan _5

Loans and Allowance for Loan Losses - Loans by risk category (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Loans outstanding by loan portfolio segment and risk category
Loans	$ 1,835,312	$ 1,979,375
Pass
Loans outstanding by loan portfolio segment and risk category
Loans	1,795,036	1,922,704
Special Mention
Loans outstanding by loan portfolio segment and risk category
Loans	5,249	15,326
Substandard
Loans outstanding by loan portfolio segment and risk category
Loans	35,027	41,345
Commercial
Loans outstanding by loan portfolio segment and risk category
Loans	1,177,270	1,299,316
Commercial | Pass
Loans outstanding by loan portfolio segment and risk category
Loans	1,140,311	1,247,786
Commercial | Special Mention
Loans outstanding by loan portfolio segment and risk category
Loans	4,854	12,101
Commercial | Substandard
Loans outstanding by loan portfolio segment and risk category
Loans	32,105	39,429
Commercial | Commercial and industrial
Loans outstanding by loan portfolio segment and risk category
Loans	572,734	691,858
Commercial | Commercial and industrial | Pass
Loans outstanding by loan portfolio segment and risk category
Loans	561,345	669,602
Commercial | Commercial and industrial | Special Mention
Loans outstanding by loan portfolio segment and risk category
Loans	1,515	5,415
Commercial | Commercial and industrial | Substandard
Loans outstanding by loan portfolio segment and risk category
Loans	9,874	16,841
Commercial | Real estate construction
Loans outstanding by loan portfolio segment and risk category
Loans	36,549	44,451
Commercial | Real estate construction | Pass
Loans outstanding by loan portfolio segment and risk category
Loans	36,549	44,451
Commercial | Commercial real estate
Loans outstanding by loan portfolio segment and risk category
Loans	567,987	563,007
Commercial | Commercial real estate | Pass
Loans outstanding by loan portfolio segment and risk category
Loans	542,417	533,733
Commercial | Commercial real estate | Special Mention
Loans outstanding by loan portfolio segment and risk category
Loans	3,339	6,686
Commercial | Commercial real estate | Substandard
Loans outstanding by loan portfolio segment and risk category
Loans	22,231	22,588
Consumer
Loans outstanding by loan portfolio segment and risk category
Loans	658,042	680,059
Consumer | Pass
Loans outstanding by loan portfolio segment and risk category
Loans	654,725	674,918
Consumer | Special Mention
Loans outstanding by loan portfolio segment and risk category
Loans	395	3,225
Consumer | Substandard
Loans outstanding by loan portfolio segment and risk category
Loans	2,922	1,916
Consumer | Residential | Real estate first mortgage
Loans outstanding by loan portfolio segment and risk category
Loans	470,822	463,370
Consumer | Residential | Real estate first mortgage | Pass
Loans outstanding by loan portfolio segment and risk category
Loans	469,037	461,221
Consumer | Residential | Real estate first mortgage | Special Mention
Loans outstanding by loan portfolio segment and risk category
Loans		1,406
Consumer | Residential | Real estate first mortgage | Substandard
Loans outstanding by loan portfolio segment and risk category
Loans	1,785	743
Consumer | Residential | Real estate junior lien
Loans outstanding by loan portfolio segment and risk category
Loans	130,180	143,416
Consumer | Residential | Real estate junior lien | Pass
Loans outstanding by loan portfolio segment and risk category
Loans	128,661	140,461
Consumer | Residential | Real estate junior lien | Special Mention
Loans outstanding by loan portfolio segment and risk category
Loans	395	1,819
Consumer | Residential | Real estate junior lien | Substandard
Loans outstanding by loan portfolio segment and risk category
Loans	1,124	1,136
Consumer | Other revolving and installment
Loans outstanding by loan portfolio segment and risk category
Loans	57,040	73,273
Consumer | Other revolving and installment | Pass
Loans outstanding by loan portfolio segment and risk category
Loans	57,027	73,236
Consumer | Other revolving and installment | Substandard
Loans outstanding by loan portfolio segment and risk category
Loans	$ 13	$ 37

Loans and Allowance for Loan _6

Loans and Allowance for Loan Losses - Changes in allowance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Changes in the allowance
Beginning Balance	$ 33,758	$ 27,019	$ 34,246	$ 23,924
Provision for loan losses		3,500		6,000
Loan charge-offs	(322)	(3,666)	(1,106)	(3,765)
Loan recoveries	328	403	624	1,097
Ending Balance	33,764	27,256	33,764	27,256
Unallocated
Changes in the allowance
Beginning Balance	823	1,833	1,378	2,192
Provision for loan losses	1,646	(86)	1,091	(445)
Ending Balance	2,469	1,747	2,469	1,747
Commercial
Changes in the allowance
Beginning Balance	24,934	21,511	24,968	19,261
Provision for loan losses	(1,793)	2,924	(1,260)	4,613
Loan charge-offs	(273)	(3,568)	(1,013)	(3,600)
Loan recoveries	276	321	449	914
Ending Balance	23,144	21,188	23,144	21,188
Commercial | Commercial and industrial
Changes in the allowance
Beginning Balance	10,487	12,901	10,205	12,270
Provision for loan losses	(869)	278	(553)	348
Loan charge-offs	(273)	(2,703)	(477)	(2,735)
Loan recoveries	275	321	445	914
Ending Balance	9,620	10,797	9,620	10,797
Commercial | Real estate construction
Changes in the allowance
Beginning Balance	598	334	658	303
Provision for loan losses	(11)	109	(71)	140
Ending Balance	587	443	587	443
Commercial | Commercial real estate
Changes in the allowance
Beginning Balance	13,849	8,276	14,105	6,688
Provision for loan losses	(913)	2,537	(636)	4,125
Loan charge-offs		(865)	(536)	(865)
Loan recoveries	1		4
Ending Balance	12,937	9,948	12,937	9,948
Consumer
Changes in the allowance
Beginning Balance	8,001	3,675	7,900	2,471
Provision for loan losses	147	662	169	1,832
Loan charge-offs	(49)	(98)	(93)	(165)
Loan recoveries	52	82	175	183
Ending Balance	8,151	4,321	8,151	4,321
Consumer | Residential | Real estate first mortgage
Changes in the allowance
Beginning Balance	6,047	2,209	5,774	1,448
Provision for loan losses	129	459	402	1,220
Loan recoveries		5		5
Ending Balance	6,176	2,673	6,176	2,673
Consumer | Residential | Real estate junior lien
Changes in the allowance
Beginning Balance	1,288	1,025	1,373	671
Provision for loan losses	99	32	(69)	349
Loan charge-offs		(12)		(12)
Loan recoveries	14	57	97	94
Ending Balance	1,401	1,102	1,401	1,102
Consumer | Other revolving and installment
Changes in the allowance
Beginning Balance	666	441	753	352
Provision for loan losses	(81)	171	(164)	263
Loan charge-offs	(49)	(86)	(93)	(153)
Loan recoveries	38	20	78	84
Ending Balance	$ 574	$ 546	$ 574	$ 546

Loans and Allowance for Loan _7

Loans and Allowance for Loan Losses - Components of loans and associated allowance (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Loans and Allowance for Loan Losses
Recorded Investment, Individually Evaluated	$ 7,711		$ 8,530
Recorded Investment, Collectively Evaluated	1,827,601		1,970,845
Loans and Leases Receivable, Gross, Total	1,835,312		1,979,375
Allowance for Loan Losses, Individually Evaluated	922		1,205
Allowance for Loan Losses, Collectively Evaluated	30,373		31,663
Loans and Leases Receivable, Allowance, Total	33,764	$ 33,758	34,246	$ 27,256	$ 27,019	$ 23,924
Unallocated
Loans and Allowance for Loan Losses
Loans and Leases Receivable, Allowance, Total	2,469	823	1,378	1,747	1,833	2,192
Commercial
Loans and Allowance for Loan Losses
Recorded Investment, Individually Evaluated	7,349		7,840
Recorded Investment, Collectively Evaluated	1,169,921		1,291,476
Loans and Leases Receivable, Gross, Total	1,177,270		1,299,316
Allowance for Loan Losses, Individually Evaluated	892		1,173
Allowance for Loan Losses, Collectively Evaluated	22,252		23,795
Loans and Leases Receivable, Allowance, Total	23,144	24,934	24,968	21,188	21,511	19,261
Commercial | Commercial and industrial
Loans and Allowance for Loan Losses
Recorded Investment, Individually Evaluated	2,696		2,616
Recorded Investment, Collectively Evaluated	570,038		689,242
Loans and Leases Receivable, Gross, Total	572,734		691,858
Allowance for Loan Losses, Individually Evaluated	885		336
Allowance for Loan Losses, Collectively Evaluated	8,735		9,869
Loans and Leases Receivable, Allowance, Total	9,620	10,487	10,205	10,797	12,901	12,270
Commercial | Real estate construction
Loans and Allowance for Loan Losses
Recorded Investment, Collectively Evaluated	36,549		44,451
Loans and Leases Receivable, Gross, Total	36,549		44,451
Allowance for Loan Losses, Collectively Evaluated	587		658
Loans and Leases Receivable, Allowance, Total	587	598	658	443	334	303
Commercial | Commercial real estate
Loans and Allowance for Loan Losses
Recorded Investment, Individually Evaluated	4,653		5,224
Recorded Investment, Collectively Evaluated	563,334		557,783
Loans and Leases Receivable, Gross, Total	567,987		563,007
Allowance for Loan Losses, Individually Evaluated	7		837
Allowance for Loan Losses, Collectively Evaluated	12,930		13,268
Loans and Leases Receivable, Allowance, Total	12,937	13,849	14,105	9,948	8,276	6,688
Consumer
Loans and Allowance for Loan Losses
Recorded Investment, Individually Evaluated	362		690
Recorded Investment, Collectively Evaluated	657,680		679,369
Loans and Leases Receivable, Gross, Total	658,042		680,059
Allowance for Loan Losses, Individually Evaluated	30		32
Allowance for Loan Losses, Collectively Evaluated	8,121		7,868
Loans and Leases Receivable, Allowance, Total	8,151	8,001	7,900	4,321	3,675	2,471
Consumer | Residential | Real estate first mortgage
Loans and Allowance for Loan Losses
Recorded Investment, Individually Evaluated	23		439
Recorded Investment, Collectively Evaluated	470,799		462,931
Loans and Leases Receivable, Gross, Total	470,822		463,370
Allowance for Loan Losses, Collectively Evaluated	6,176		5,774
Loans and Leases Receivable, Allowance, Total	6,176	6,047	5,774	2,673	2,209	1,448
Consumer | Residential | Real estate junior lien
Loans and Allowance for Loan Losses
Recorded Investment, Individually Evaluated	326		224
Recorded Investment, Collectively Evaluated	129,854		143,192
Loans and Leases Receivable, Gross, Total	130,180		143,416
Allowance for Loan Losses, Individually Evaluated	27		19
Allowance for Loan Losses, Collectively Evaluated	1,374		1,354
Loans and Leases Receivable, Allowance, Total	1,401	1,288	1,373	1,102	1,025	671
Consumer | Other revolving and installment
Loans and Allowance for Loan Losses
Recorded Investment, Individually Evaluated	13		27
Recorded Investment, Collectively Evaluated	57,027		73,246
Loans and Leases Receivable, Gross, Total	57,040		73,273
Allowance for Loan Losses, Individually Evaluated	3		13
Allowance for Loan Losses, Collectively Evaluated	571		740
Loans and Leases Receivable, Allowance, Total	$ 574	$ 666	$ 753	$ 546	$ 441	$ 352

Loans and Allowance for Loan _8

Loans and Allowance for Loan Losses - Impaired loans (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Impaired
Loans with related allowance for loan losses, Recorded investment	$ 1,761	$ 4,717
Loans with related allowance for loan losses, unpaid principal	1,798	4,746
Loans with related allowance for loan losses, Related Allowance	922	1,205
Loans with no related allowance for loan losses, Recorded investment	5,950	3,813
Loans with no related allowance for loan losses, unpaid principal	6,285	4,358
Recorded investment	7,711	8,530
Unpaid principal balance	8,083	9,104
Commercial | Commercial and industrial
Impaired
Loans with related allowance for loan losses, Recorded investment	1,534	723
Loans with related allowance for loan losses, unpaid principal	1,546	725
Loans with related allowance for loan losses, Related Allowance	885	336
Loans with no related allowance for loan losses, Recorded investment	1,162	1,893
Loans with no related allowance for loan losses, unpaid principal	1,314	2,173
Recorded investment	2,696	2,616
Unpaid principal balance	2,860	2,898
Commercial | Commercial real estate
Impaired
Loans with related allowance for loan losses, Recorded investment	187	3,948
Loans with related allowance for loan losses, unpaid principal	211	3,974
Loans with related allowance for loan losses, Related Allowance	7	837
Loans with no related allowance for loan losses, Recorded investment	4,466	1,276
Loans with no related allowance for loan losses, unpaid principal	4,621	1,415
Recorded investment	4,653	5,224
Unpaid principal balance	4,832	5,389
Consumer | Residential | Real estate first mortgage
Impaired
Loans with no related allowance for loan losses, Recorded investment	23	439
Loans with no related allowance for loan losses, unpaid principal	25	464
Recorded investment	23	439
Unpaid principal balance	25	464
Consumer | Residential | Real estate junior lien
Impaired
Loans with related allowance for loan losses, Recorded investment	27	19
Loans with related allowance for loan losses, unpaid principal	28	20
Loans with related allowance for loan losses, Related Allowance	27	19
Loans with no related allowance for loan losses, Recorded investment	299	205
Loans with no related allowance for loan losses, unpaid principal	325	306
Recorded investment	326	224
Unpaid principal balance	353	326
Consumer | Other revolving and installment
Impaired
Loans with related allowance for loan losses, Recorded investment	13	27
Loans with related allowance for loan losses, unpaid principal	13	27
Loans with related allowance for loan losses, Related Allowance	3	13
Recorded investment	13	27
Unpaid principal balance	$ 13	$ 27

Loans and Allowance for Loan _9

Loans and Allowance for Loan Losses - Interest Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Impaired
Loans with related allowance for loan losses, Average recorded investment	$ 1,776	$ 5,136	$ 1,871	$ 4,972
Loans with no related allowance for loan losses, Average recorded investment	5,971	3,401	6,176	3,613
Loans, Average recorded investment	7,747	8,537	8,047	8,585
Loans with related allowance for loan losses, Interest income	5	23	10	23
Loans with no related allowance for loan losses, Interest income	5	29	11	29
Loans, Interest income	10	52	21	52
Commercial | Commercial and industrial
Impaired
Loans with related allowance for loan losses, Average recorded investment	1,548	4,881	1,637	4,714
Loans with no related allowance for loan losses, Average recorded investment	1,174	694	1,187	747
Loans, Average recorded investment	2,722	5,575	2,824	5,461
Loans with related allowance for loan losses, Interest income	3	15	6	15
Loans with no related allowance for loan losses, Interest income	5	26	11	26
Loans, Interest income	8	41	17	41
Commercial | Commercial real estate
Impaired
Loans with related allowance for loan losses, Average recorded investment	188	200	190	203
Loans with no related allowance for loan losses, Average recorded investment	4,472	1,693	4,662	1,821
Loans, Average recorded investment	4,660	1,893	4,852	2,024
Loans with related allowance for loan losses, Interest income	2	8	4	8
Loans, Interest income	2	8	4	8
Consumer | Residential | Real estate first mortgage
Impaired
Loans with no related allowance for loan losses, Average recorded investment	23	755	24	761
Loans, Average recorded investment	23	755	24	761
Consumer | Residential | Real estate junior lien
Impaired
Loans with related allowance for loan losses, Average recorded investment	27	20	30	20
Loans with no related allowance for loan losses, Average recorded investment	302	255	303	279
Loans, Average recorded investment	329	275	333	299
Loans with no related allowance for loan losses, Interest income		3		3
Loans, Interest income		3		3
Consumer | Other revolving and installment
Impaired
Loans with related allowance for loan losses, Average recorded investment	13	35	14	35
Loans with no related allowance for loan losses, Average recorded investment		4		5
Loans, Average recorded investment	$ 13	$ 39	$ 14	$ 40

Loans and Allowance for Loan_10

Loans and Allowance for Loan Losses - Pledged (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Loans and Allowance for Loan Losses
Total loans	$ 1,835,312	$ 1,979,375
Pledged
Loans and Allowance for Loan Losses
Total loans	$ 1,200,000	$ 1,200,000

Loans and Allowance for Loan_11

Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021USD ($)loan	Jun. 30, 2020loan	Jun. 30, 2021USD ($)loan
Troubled debt restructuring
Number of loans modified as a troubled debt restructuring | loan	3	0
Number of loan modifications not considered TDRs, in connection with CARES Act | loan	584		584
Loan modifications not considered TDRS, in connection with CARES Act | $	$ 154,500		$ 154,500
Maximum
Troubled debt restructuring
Typical loan deferral period under the CARES Act			90 days
Extending amortization period
Troubled debt restructuring
Carrying value of restructured loan | $			$ 795
Second Deferral
Troubled debt restructuring
Number of loan modifications not considered TDRs, in connection with CARES Act | loan	12		12
Loan modifications not considered TDRS, in connection with CARES Act | $	$ 5,300		$ 5,300
First Deferral
Troubled debt restructuring
Number of loan modifications not considered TDRs, in connection with CARES Act | loan	4		4
Loan modifications not considered TDRS, in connection with CARES Act | $	$ 653		$ 653

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Goodwill
Total goodwill	$ 30,201	$ 30,201
Banking
Goodwill
Total goodwill	20,131	20,131
Retirement and Benefit Services
Goodwill
Total goodwill	$ 10,070	$ 10,070

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Goodwill
Gross Carrying Amount	$ 43,346		$ 43,346		$ 47,139
Accumulated Amortization	(19,666)		(19,666)		(21,220)
Total	23,680		23,680		25,919
Intangible amortization expense	1,088	$ 991	2,239	$ 1,981
Goodwill, Impairment Loss			0
Identifiable customer intangibles
Goodwill
Gross Carrying Amount	43,346		43,346		43,346
Accumulated Amortization	(19,666)		(19,666)		(17,490)
Total	$ 23,680		$ 23,680		25,856
Core deposit intangible assets
Goodwill
Gross Carrying Amount					3,793
Accumulated Amortization					(3,730)
Total					$ 63

Loan Servicing (Details)

Loan Servicing (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Loan Servicing
Loans serviced for others	$ 417,500		$ 417,500		$ 445,500
Servicing Asset at Fair Value, Amount
Balance, beginning of period	1,952	$ 3,277	1,987	$ 3,845
Additions	62	88	111	112
Amortization	(185)	(209)	(385)	(396)
(Impairment)/Recovery	135	(265)	251	(670)
Balance, end of period	$ 1,964	$ 2,891	$ 1,964	$ 2,891

Loan Servicing - Key economic a

Loan Servicing - Key economic assumptions (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Loan Servicing
Fair value of servicing rights	$ 1,964	$ 1,987
Weighted average remaining term, years	20 years 1 month 6 days	20 years 1 month 6 days
Prepayment speeds	17.20%	17.70%
Discount rate	9.30%	9.00%

Leases - Lease right-of-use ass

Leases - Lease right-of-use assets and liabilities (Details) $ in Thousands	Jun. 30, 2021USD ($)lease	Dec. 31, 2020USD ($)
Leases
Number of finance leases | lease	1
Lease Right-of-Use Assets
Operating lease right-of-use assets	$ 4,203	$ 6,918
Finance lease right-of-use assets	$ 144	$ 202
Finance Lease, Right-of-Use Asset, balance sheet location	Land, premises and equipment, net	Land, premises and equipment, net
Lease right-of-use assets	$ 4,347	$ 7,120
Operating lease liabilities	4,868	7,861
Finance lease liabilities	$ 319	$ 430
Finance lease liabilities, balance sheet location	Long-term debt	Long-term debt
Lease liabilities	$ 5,187	$ 8,291

Leases - Weighted-average remai

Leases - Weighted-average remaining lease term and average discount rate (Details) - item	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Leases
Minimum number of options to renew lease agreements	1
Weighted-average remaining lease term, Operating leases	3 years 8 months 12 days	5 years 9 months 18 days
Weighted-average remaining lease term, Finance leases	1 year 3 months 18 days	1 year 9 months 18 days
Weighted-average discount rate, Operating leases	2.50%	2.90%
Weighted-average discount rate, Finance leases	7.80%	7.80%

Leases - Lease costs and other

Leases - Lease costs and other lease information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Lease costs
Operating lease cost	$ 492	$ 568	$ 988	$ 1,191
Variable lease cost	158	468	391	665
Short-term lease cost	46	107	83	202
Finance lease cost
Interest on lease liabilities	7	11	15	23
Amortization of right-of-use assets	29	29	58	58
Sublease Income	(52)	(52)	(112)	(118)
Net lease cost	680	1,131	1,423	2,021
Cash paid for amounts included in the measurement of lease liabilities operating cash flows from operating leases	$ 474	561	$ 961	1,179
Right-of-use assets obtained in exchange for new operating lease liabilities		$ 1,348		$ 1,531

Leases - Future minimum payment

Leases - Future minimum payments for finance and operating leases (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Finance leases
2022	$ 251
2023	84
Total future minimum lease payments	335
Amounts representing interest	(16)
Total finance lease liabilities	319	$ 430
Operating leases
2022	1,664
2023	1,616
2024	1,112
2025	392
2026	345
Thereafter	326
Total future minimum lease payments	5,455
Amounts representing interest	(587)
Total operating lease liabilities	$ 4,868	$ 7,861

Deposits (Details)

Deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Deposits.
Noninterest-bearing	$ 758,820	$ 754,716
Interest-bearing demand	736,043	618,900
Savings accounts	89,437	79,902
Money market savings	920,831	909,137
Time deposits	205,809	209,338
Total interest-bearing	1,952,120	1,817,277
Total deposits	$ 2,710,940	$ 2,571,993

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Long-Term Debt
Face Value	$ 63,010	$ 63,010
Carrying Amount	58,992	58,735
Subordinated notes payable
Long-Term Debt
Face Value	50,000	50,000
Carrying Amount	$ 50,000	$ 49,688
Fixed interest rate	3.50%
Period End Interest Rate		4.36%
Subordinated notes payable | Three - month LIBOR
Long-Term Debt
Interest Rate		4.12%
Junior subordinated debenture (Trust I)
Long-Term Debt
Face Value	$ 4,124	$ 4,124
Carrying Amount	$ 3,470	$ 3,447
Period End Interest Rate	3.25%	3.35%
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	$ 5,203	$ 5,170
Period End Interest Rate	1.92%	2.02%
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	$ 2,700
Carrying Amount	$ 319	$ 430
Fixed interest rate	7.81%	7.81%

Financial Instruments with Of_3

Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Financial Instruments with Off Balance Sheet Risk
Amount of credit risk	$ 616,854	$ 617,650
Commitments to extend credit
Financial Instruments with Off Balance Sheet Risk
Amount of credit risk	610,448	611,140
Standby letters of credit
Financial Instruments with Off Balance Sheet Risk
Amount of credit risk	$ 6,406	$ 6,510

Financial Instruments with Off

Financial Instruments with Off Balance Sheet Risk - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
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
Outstanding letters of credit	0	0
Collateralized loans	$ 230,200	$ 245,700

Share-Based Compensation - Plan

Share-Based Compensation - Plan Information (Details) - 2019 Equity Incentive Plan - shares	6 Months Ended
	Jun. 30, 2021	May 06, 2019
Share-Based Compensation
Awards authorized		1,100,000
Restricted stock awards
Share-Based Compensation
Awards issued	37,789
Restricted stock units
Share-Based Compensation
Awards issued	91,302

Share-Based Compensation - Acti

Share-Based Compensation - Activity in stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Additional disclosures
Compensation expense	$ 761	$ 624	$ 1,300	$ 859
Restricted Stock Awards and Units
Restricted Stock Awards and Units
Outstanding at beginning of period			325,030	347,211
Granted			66,664	77,846
Vested			(88,382)	(86,137)
Forfeited or cancelled				(5,068)
Outstanding at end of period	303,312	333,852	303,312	333,852
Weighted Average Grant Date Fair Value
Outstanding at beginning of period			$ 19.48	$ 18.64
Granted			26.63	19.53
Vested			21.38	16.15
Forfeited or cancelled				19.37
Outstanding at end of period	$ 20.49	$ 19.48	$ 20.49	$ 19.48
Additional disclosures
Unrecognized compensation cost	$ 3,600		$ 3,600
Weighted average period			2 years 10 months 6 days

Income Taxes - Reconciliation b

Income Taxes - Reconciliation between applicable income taxes and statutory federal tax rate (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Tax amount
Taxes at statutory federal income tax rate	$ 3,221	$ 3,168	$ 7,395	$ 4,596
Tax effect of tax exempt income	(148)	(127)	(301)	(247)
Tax effect of other	571	572	1,212	701
Total income tax expense	$ 3,644	$ 3,613	$ 8,306	$ 5,050
Percentage of pretax income
Taxes at statutory federal income tax rate (as percentage)	21.00%	21.00%	21.00%	21.00%
Tax effect of tax exempt income (as percentage)	(1.00%)	(0.80%)	(0.90%)	(1.10%)
Tax effect of other (as percentage)	3.70%	3.80%	3.40%	3.20%
Applicable income taxes (as percentage)	23.70%	24.00%	23.50%	23.10%

Segment Reporting (Details)

Segment Reporting (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)segmentitem	Jun. 30, 2020USD ($)
Segment Reporting
Number of operating segments | segment			4
Number of banking offices | item			14
Key metrics related to segments
Net interest income	$ 21,140	$ 20,091	$ 43,178	$ 38,928
Provision for loan losses		3,500		6,000
Noninterest income	36,748	38,230	77,629	65,419
Noninterest expense	42,550	39,734	85,592	76,460
Net income before taxes	15,338	15,087	35,215	21,887
Corporate Administration
Key metrics related to segments
Net interest income	(538)	(856)	(826)	(1,733)
Noninterest income	(14)	5	(28)	9
Noninterest expense	8,859	8,533	17,517	17,721
Net income before taxes	(9,411)	(9,384)	(18,371)	(19,445)
Banking | Operating Segments
Key metrics related to segments
Net interest income	21,188	20,417	43,068	39,863
Provision for loan losses		3,500		6,000
Noninterest income	1,466	2,857	2,988	4,731
Noninterest expense	10,914	11,359	21,998	24,011
Net income before taxes	11,740	8,415	24,058	14,583
Retirement and Benefit Services | Operating Segments
Key metrics related to segments
Noninterest income	17,871	13,710	35,126	29,930
Noninterest expense	9,988	9,193	20,100	17,125
Net income before taxes	7,883	4,517	15,026	12,805
Wealth Management | Operating Segments
Key metrics related to segments
Noninterest income	5,138	4,112	10,124	8,158
Noninterest expense	2,128	2,629	4,463	4,144
Net income before taxes	3,010	1,483	5,661	4,014
Mortgage | Operating Segments
Key metrics related to segments
Net interest income	490	530	936	798
Noninterest income	12,287	17,546	29,419	22,591
Noninterest expense	10,661	8,020	21,514	13,459
Net income before taxes	$ 2,116	$ 10,056	$ 8,841	$ 9,930

Earnings Per Share - Two-class

Earnings Per Share - Two-class method (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share
Net Income	$ 11,694	$ 11,474	$ 26,909	$ 16,837
Dividends and undistributed earnings allocated to participating securities	179	200	432	282
Net income available to common shareholders	$ 11,515	$ 11,274	$ 26,477	$ 16,555
Weighted-average common shares outstanding for basic earnings per share	17,194	17,111	17,170	17,091
Dilutive effect of stock-based awards	303	334	312	334
Weighted-average common shares outstanding for diluted earnings per share	17,497	17,445	17,482	17,425
Earnings per common share:
Basic earnings per common share	$ 0.67	$ 0.66	$ 1.54	$ 0.97
Diluted earnings per common share	$ 0.66	$ 0.65	$ 1.52	$ 0.95

Derivative Instruments (Details

Derivative Instruments (Details) - Not designated as hedging - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Derivative Instruments
Fair Value, Derivative Assets	$ 6,679	$ 13,357
Fair Value, Derivative Liabilities	1,038	2,911
Notional Amount, Derivative Assets	235,667	401,690
Notional Amount, Derivative Liabilities	295,778	351,597
Interest rate swaps | Other assets
Derivative Instruments
Fair Value, Derivative Assets	882	569
Notional Amount, Derivative Assets	58,778	44,597
Interest rate swaps | Accrued expenses and other liabilities
Derivative Instruments
Fair Value, Derivative Liabilities	961	572
Notional Amount, Derivative Liabilities	58,778	44,597
Interest rate lock commitments | Other assets
Derivative Instruments
Fair Value, Derivative Assets	4,696	10,124
Notional Amount, Derivative Assets	145,230	270,103
Forward loan sales commitments | Other assets
Derivative Instruments
Fair Value, Derivative Assets	1,101	2,664
Notional Amount, Derivative Assets	31,659	86,990
TBA mortgage backed securities | Accrued expenses and other liabilities
Derivative Instruments
Fair Value, Derivative Liabilities	77	2,339
Notional Amount, Derivative Liabilities	$ 237,000	$ 307,000

Derivative Instruments - Gain (

Derivative Instruments - Gain (loss) recognized on derivatives instruments (Details) - Not designated as hedging - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Gain (loss) recognized on derivative instruments
Total gain/(loss) from derivative instruments	$ (2,593)	$ 2,540	$ (1,510)	$ 1,010
Interest rate swaps | Other noninterest income
Gain (loss) recognized on derivative instruments
Total gain/(loss) from derivative instruments	(1)		1
Interest rate lock commitments | Mortgage banking
Gain (loss) recognized on derivative instruments
Total gain/(loss) from derivative instruments	740	4,352	(5,505)	5,579
Forward loan sales commitments | Mortgage banking
Gain (loss) recognized on derivative instruments
Total gain/(loss) from derivative instruments	73	117	(1,562)	783
TBA mortgage backed securities | Mortgage banking
Gain (loss) recognized on derivative instruments
Total gain/(loss) from derivative instruments	$ (3,405)	$ (1,929)	$ 5,556	$ (5,352)

Derivative Instruments - Collat

Derivative Instruments - Collateral (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Derivative Instruments
Collateral held by third parties	$ 2.6	$ 2.7

Regulatory Matters (Details)

Regulatory Matters (Details) $ in Thousands	Jun. 30, 2021USD ($)	Dec. 31, 2020USD ($)
Common equity tier 1 capital to risk weighted assets
Actual (Amount)	$ 290,330	$ 265,490
Requirements for Capital Adequacy Purposes (Amount)	$ 91,349	$ 93,723
Actual (Ratio)	14.30	12.75
Requirements for Capital Adequacy Purposes (Ratio)	4.50	4.50
Tier 1 capital to risk weighted assets
Actual (Amount)	$ 298,693	$ 273,797
Requirements for Capital Adequacy Purposes (Amount)	$ 121,798	$ 124,964
Actual (Ratio)	14.71	13.15
Requirements for Capital Adequacy Purposes (Ratio)	6	6
Total capital to risk weighted assets
Actual (Amount)	$ 374,172	$ 349,620
Requirements for Capital Adequacy Purposes (Amount)	$ 162,398	$ 166,618
Actual (Ratio)	18.43	16.79
Requirements for Capital Adequacy Purposes (Ratio)	8	8
Tier 1 capital to average assets
Actual (Amount)	$ 290,330	$ 273,797
Requirements for Capital Adequacy Purposes (Amount)	$ 124,228	$ 118,587
Actual (Ratio)	9.62	9.24
Requirements for Capital Adequacy Purposes (Ratio)	4	4
Bank
Common equity tier 1 capital to risk weighted assets
Actual (Amount)	$ 275,218	$ 251,806
Requirements for Capital Adequacy Purposes (Amount)	91,283	93,632
Minimum to be Well Capitalized Under Prompt Corrective Action (Amount)	$ 131,853	$ 135,246
Actual (Ratio)	13.57	12.10
Requirements for Capital Adequacy Purposes (Ratio)	4.50	4.50
Minimum to be Well Capitalized Under Prompt Corrective Action (Ratio)	6.50	6.50
Tier 1 capital to risk weighted assets
Actual (Amount)	$ 275,218	$ 251,806
Requirements for Capital Adequacy Purposes (Amount)	121,711	124,843
Minimum to be Well Capitalized Under Prompt Corrective Action (Amount)	$ 162,281	$ 166,457
Actual (Ratio)	13.57	12.10
Requirements for Capital Adequacy Purposes (Ratio)	6	6
Minimum to be Well Capitalized Under Prompt Corrective Action (Ratio)	8	8
Total capital to risk weighted assets
Actual (Amount)	$ 300,678	$ 277,916
Requirements for Capital Adequacy Purposes (Amount)	162,281	166,457
Minimum to be Well Capitalized Under Prompt Corrective Action (Amount)	$ 202,851	$ 208,071
Actual (Ratio)	14.82	13.36
Requirements for Capital Adequacy Purposes (Ratio)	8	8
Minimum to be Well Capitalized Under Prompt Corrective Action (Ratio)	10	10
Tier 1 capital to average assets
Actual (Amount)	$ 275,218	$ 251,806
Requirements for Capital Adequacy Purposes (Amount)	122,656	118,511
Minimum to be Well Capitalized Under Prompt Corrective Action (Amount)	$ 153,320	$ 148,139
Actual (Ratio)	8.98	8.50
Requirements for Capital Adequacy Purposes (Ratio)	4	4
Minimum to be Well Capitalized Under Prompt Corrective Action (Ratio)	5	5

Stock Repurchase Program (Detai

Stock Repurchase Program (Details) - USD ($)	Feb. 18, 2021	Jun. 30, 2021
Stock Repurchase Program
Authorized shares for repurchase	$ 770,000
Repurchase program period	36 months
Shares repurchased		0

Fair Value of Assets and Liab_3

Fair Value of Assets and Liabilities - Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value	$ 651,546	$ 592,342
Mortgage backed securities - Residential agency
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value	509,843	306,719
Mortgage backed securities - Commercial
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value	100,088	94,978
Asset backed securities
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value	72	115
Corporate bonds
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value	35,883	30,850
Recurring
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value	651,546	592,342
Derivative instruments	6,679	13,357
Derivative liabilities	1,038	2,911
Recurring | U.S. treasury and government agencies
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value	5,660	5,907
Recurring | Obligations of state and political agencies
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value		153,773
Recurring | Mortgage backed securities - Residential agency
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value	509,843	306,719
Recurring | Mortgage backed securities - Commercial
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value	100,088	94,978
Recurring | Asset backed securities
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value	72	115
Recurring | Corporate bonds
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value	35,883	30,850
Recurring | Level 2
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value	651,546	592,342
Derivative instruments	6,679	13,357
Derivative liabilities	1,038	2,911
Recurring | Level 2 | U.S. treasury and government agencies
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value	5,660	5,907
Recurring | Level 2 | Obligations of state and political agencies
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value		153,773
Recurring | Level 2 | Mortgage backed securities - Residential agency
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value	509,843	306,719
Recurring | Level 2 | Mortgage backed securities - Commercial
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value	100,088	94,978
Recurring | Level 2 | Asset backed securities
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value	72	115
Recurring | Level 2 | Corporate bonds
Fair value, assets and liabilities measured on recurring and non recurring basis
Investment securities, Available-for-sale, at fair value	$ 35,883	$ 30,850

Fair Value of Assets and Liab_4

Fair Value of Assets and Liabilities - Nonrecurring Basis (Details) - Non recurring - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair value, assets and liabilities measured on recurring and non recurring basis
Impaired loans	$ 6,789	$ 7,325
Foreclosed assets	858	63
Servicing rights	1,964	1,987
Loans held for sale
Fair value, assets and liabilities measured on recurring and non recurring basis
Loans held for sale	66,856	122,440
Impaired loans
Fair value, assets and liabilities measured on recurring and non recurring basis
Net impairment	922	1,205
Level 2 | Loans held for sale
Fair value, assets and liabilities measured on recurring and non recurring basis
Loans held for sale	66,856	122,440
Level 3
Fair value, assets and liabilities measured on recurring and non recurring basis
Impaired loans	6,789	7,325
Foreclosed assets	858	63
Servicing rights	$ 1,964	$ 1,987

Fair Value of Assets and Liab_5

Fair Value of Assets and Liabilities - Valuation Technique (Details) - Level 3	Jun. 30, 2021USD ($)item	Dec. 31, 2020USD ($)item
Impaired loans | Appraisal value | Property specific adjustment
Valuation techniques and significant unobservable inputs
Impaired loans	$ 6,789,000	$ 7,325,000
Foreclosed assets | Appraisal value | Property specific adjustment
Valuation techniques and significant unobservable inputs
Foreclosed assets	$ 858,000	$ 63,000
Servicing rights
Valuation techniques and significant unobservable inputs
Servicing Asset, Valuation Technique [Extensible List]	us-gaap:ValuationTechniqueDiscountedCashFlowMember	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Servicing rights | Prepayment speed assumptions
Valuation techniques and significant unobservable inputs
Servicing rights	$ 1,964,000	$ 1,987,000
Servicing rights | Prepayment speed assumptions | Minimum
Valuation techniques and significant unobservable inputs
Servicing Asset, Measurement Input | item	210	191
Servicing rights | Prepayment speed assumptions | Maximum
Valuation techniques and significant unobservable inputs
Servicing Asset, Measurement Input | item	348	403
Servicing rights | Prepayment speed assumptions | Weighted average
Valuation techniques and significant unobservable inputs
Servicing Asset, Measurement Input	287	285
Servicing rights | Discount rate
Valuation techniques and significant unobservable inputs
Servicing Asset, Measurement Input	0.093	0.090
Servicing rights | Discount rate | Weighted average
Valuation techniques and significant unobservable inputs
Servicing Asset, Measurement Input	0.093	0.090

Fair Value of Assets and Liab_6

Fair Value of Assets and Liabilities - Off-Balance Sheet Credit-Related Commitments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Financial Assets
Investment securities held-to-maturity	$ 148,285
Carrying Amount
Financial Assets
Cash and cash equivalents	315,430	$ 172,962
Investment securities held-to-maturity	146,316
Loans	1,801,548	1,945,129
Accrued interest receivable	8,463	9,662
Bank-owned life insurance	32,752	32,363
Financial Liabilities
Noninterest-bearing deposits	758,820	754,716
Interest-bearing deposits	1,746,311	1,607,939
Time deposits	205,809	209,338
Long-term debt	58,992	58,735
Accrued interest payable	860	654
Estimated Fair Value
Financial Assets
Cash and cash equivalents	315,430	172,962
Investment securities held-to-maturity	148,285
Loans	1,847,706	1,992,394
Accrued interest receivable	8,463	9,662
Bank-owned life insurance	32,752	32,363
Financial Liabilities
Noninterest-bearing deposits	758,820	754,716
Interest-bearing deposits	1,746,311	1,607,939
Time deposits	206,583	210,637
Long-term debt	57,129	56,131
Accrued interest payable	860	654
Level 1 | Estimated Fair Value
Financial Assets
Cash and cash equivalents	315,430	172,962
Accrued interest receivable	8,463	9,662
Financial Liabilities
Accrued interest payable	860	654
Level 2 | Estimated Fair Value
Financial Assets
Investment securities held-to-maturity	148,285
Bank-owned life insurance	32,752	32,363
Financial Liabilities
Noninterest-bearing deposits	758,820	754,716
Interest-bearing deposits	1,746,311	1,607,939
Long-term debt	57,129	56,131
Level 3 | Estimated Fair Value
Financial Assets
Loans	1,847,706	1,992,394
Financial Liabilities
Time deposits	$ 206,583	$ 210,637

COVID-19 Pandemic Response (Det

COVID-19 Pandemic Response (Details) - PPP Loans $ in Millions	6 Months Ended
	Jun. 30, 2021USD ($)client
COVID-19 Pandemic Response
Number of clients assisted under the PPP | client	2,454
Loans financed	$ 474.2
Net processing fees	$ 15.7