0000712534-22-000044 | 10-K | XBRL Viewer

Beginning January 1, 2021, the amount is based on the current expected credit loss methodology. Prior to January 1, 2021, the amount is based on the incurred loss methodology. See additional details in NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES of these Notes to Consolidated Financial Statements.

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 245	$ 0
Investment securities held to maturity - fair value	$ 2,202,503	$ 1,280,293
Preferred Stock, par value (in dollars per share)	$ 1,000	$ 1,000
Preferred Stock, liquidation value per share (in dollars per share)	$ 1,000	$ 1,000
Preferred Stock, authorized (in shares)	600	600
Preferred Stock, issued (in shares)	125	125
Preferred Stock, outstanding (in shares)	125	125
Common Stock, stated value (in dollars per share)	$ 0.125	$ 0.125
Common Stock, authorized (in shares)	100,000,000	100,000,000
Common Stock, issued (in shares)	53,410,411	53,922,359
Common Stock, outstanding (in shares)	53,410,411	53,922,359

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Loans receivable:
Taxable	$ 338,009	$ 358,264	$ 382,772
Tax-exempt	22,110	21,483	17,568
Investment securities:
Taxable	29,951	24,440	27,815
Tax-exempt	55,331	42,341	31,655
Deposits with financial institutions	634	938	4,225
Federal Home Loan Bank stock	597	1,042	1,370
Total Interest Income	446,632	448,508	465,405
INTEREST EXPENSE
Deposits	23,319	51,740	91,585
Federal funds purchased	5	120	251
Securities sold under repurchase agreements	314	604	1,424
Federal Home Loan Bank advances	5,672	6,973	7,176
Subordinated debentures and term loans	6,642	6,944	8,309
Total Interest Expense	35,952	66,381	108,745
NET INTEREST INCOME	410,680	382,127	356,660
Provision for credit losses - loans	0	58,673	2,800
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	410,680	323,454	353,860
OTHER INCOME
Net gains and fees on sales of loans	19,689	18,271	7,891
Increase in cash surrender value of life insurance	4,873	5,040	4,518
Gains on life insurance benefits	2,187	100	19
Net realized gains on sales of available for sale securities	5,674	11,895	4,415
Other income	3,008	1,898	2,068
Total Other Income	109,323	109,926	86,688
OTHER EXPENSES
Salaries and employee benefits	166,995	155,937	144,037
Net occupancy	23,326	26,756	19,584
Equipment	19,401	19,344	16,218
Marketing	5,762	6,609	6,650
Outside data processing fees	18,317	14,432	16,476
Printing and office supplies	1,217	1,304	1,445
Intangible asset amortization	5,747	5,987	5,994
FDIC assessments	6,243	5,804	717
Other real estate owned and foreclosure expenses	992	330	2,428
Professional and other outside services	11,913	8,901	15,410
Other expenses	19,300	18,001	17,804
Total Other Expenses	279,213	263,405	246,763
INCOME BEFORE INCOME TAX	240,790	169,975	193,785
Income tax expense	35,259	21,375	29,325
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$ 205,531	$ 148,600	$ 164,460
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS PER SHARE DATA:
Basic (in dollars per share)	$ 3.82	$ 2.75	$ 3.20
Diluted (in dollars per share)	$ 3.81	$ 2.74	$ 3.19
Service charges on deposit accounts
OTHER INCOME
Other income	$ 23,571	$ 20,999	$ 22,951
Fiduciary and wealth management fees
OTHER INCOME
Other income	28,362	23,747	17,562
Card payment fees
OTHER INCOME
Other income	16,619	19,502	20,243
Derivative hedge fees
OTHER INCOME
Other income	3,850	6,977	5,357
Other customer fees
OTHER INCOME
Other income	$ 1,490	$ 1,497	$ 1,664

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 205,531	$ 148,600	$ 164,460
Unrealized gains/losses on securities available-for-sale:
Unrealized holding gain (loss) arising during the period	(30,042)	74,067	61,649
Reclassification adjustment for losses (gains) included in net income	(5,674)	(11,895)	(4,415)
Tax effect	7,502	(13,056)	(12,019)
Net of tax	(28,214)	49,116	45,215
Unrealized gain/loss on cash flow hedges:
Unrealized holding gain (loss) arising during the period	138	(1,480)	(1,072)
Reclassification adjustment for losses (gains) included in net income	1,044	906	334
Tax effect	(248)	121	156
Net of tax	934	(453)	(582)
Net gain (loss) arising during the period
Net gain (loss) arising during the period	9,482	(2,237)	5,796
Reclassification adjustment for amortization of prior service cost	84	84	106
Tax effect	(2,009)	452	(1,239)
Net of tax	7,557	(1,701)	4,663
Total other comprehensive income (loss), net of tax	(19,723)	46,962	49,296
Comprehensive income	$ 185,808	$ 195,562	$ 213,756

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative effect of ASC 326 adoption	Adjusted balance	Preferred	Preferred Adjusted balance	Common Stock	Common Stock Adjusted balance	Additional Paid in Capital	Additional Paid in Capital Adjusted balance	Retained Earnings	Retained Earnings Cumulative effect of ASC 326 adoption	Retained Earnings Adjusted balance	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Adjusted balance
Beginning balance (in shares) at Dec. 31, 2018				125		49,349,800
Beginning balance at Dec. 31, 2018	$ 1,408,260			$ 125		$ 6,169		$ 840,052		$ 583,336			$ (21,422)
Comprehensive income
Net income	164,460									164,460
Other comprehensive income (loss), net of tax	49,296												49,296
Cash dividends on common stock	(51,276)									(51,276)
Issuance of common stock related to acquisitions (in shares)						6,383,806
Issuance of common stock related to acquisitions	229,926					$ 798		229,128
Repurchases of common stock (in shares)						(516,016)
Repurchases of common stock	(19,041)					$ (65)		(18,976)
Share-based compensation (in shares)						116,572
Share-based compensation	4,115					$ 15		4,100
Stock issued under employee benefit plans (in shares)						21,521
Stock issued under employee benefit plans	702					$ 3		699
Stock issued under dividend reinvestment and stock purchase plan (in shares)						38,942
Stock issued under dividend reinvestment and stock purchase plan	1,531					$ 5		1,526
Stock options exercised (in shares)						16,950
Stock options exercised	144					$ 2		142
Restricted shares withheld for taxes (in shares)						(43,093)
Restricted shares withheld for taxes	(1,680)					$ (6)		(1,674)
Ending balance (in shares) at Dec. 31, 2019				125		55,368,482
Ending balance at Dec. 31, 2019	1,786,437			$ 125		$ 6,921		1,054,997		696,520			27,874
Comprehensive income
Net income	148,600									148,600
Other comprehensive income (loss), net of tax	46,962												46,962
Cash dividends on common stock	(56,542)									(56,542)
Issuance of common stock related to acquisitions	0
Repurchases of common stock (in shares)						(1,634,437)
Repurchases of common stock	(55,912)					$ (204)		(55,708)
Share-based compensation (in shares)						128,292
Share-based compensation	4,600					$ 16		4,584
Stock issued under employee benefit plans (in shares)						25,423
Stock issued under employee benefit plans	639					$ 3		636
Stock issued under dividend reinvestment and stock purchase plan (in shares)						60,806
Stock issued under dividend reinvestment and stock purchase plan	1,726					$ 8		1,718
Stock options exercised (in shares)						13,550
Stock options exercised	115					$ 2		113
Restricted shares withheld for taxes (in shares)						(39,757)
Restricted shares withheld for taxes	(980)					$ (6)		(974)
Ending balance (in shares) at Dec. 31, 2020				125	125	53,922,359	53,922,359
Ending balance at Dec. 31, 2020	1,875,645	$ (68,040)	$ 1,807,605	$ 125	$ 125	$ 6,740	$ 6,740	1,005,366	$ 1,005,366	788,578	$ (68,040)	$ 720,538	74,836	$ 74,836
Comprehensive income
Net income	205,531									205,531
Other comprehensive income (loss), net of tax	(19,723)												(19,723)
Cash dividends on common stock	(61,230)									(61,230)
Issuance of common stock related to acquisitions	0
Repurchases of common stock (in shares)						(646,102)
Repurchases of common stock	(25,444)					$ (81)		(25,363)
Share-based compensation (in shares)						94,510
Share-based compensation	4,762					$ 12		4,750
Stock issued under employee benefit plans (in shares)						16,507
Stock issued under employee benefit plans	605					$ 2		603
Stock issued under dividend reinvestment and stock purchase plan (in shares)						43,861
Stock issued under dividend reinvestment and stock purchase plan	$ 1,880					$ 5		1,875
Stock options exercised (in shares)	17,300					17,300
Stock options exercised	$ 198					$ 2		196
Restricted shares withheld for taxes (in shares)						(38,024)
Restricted shares withheld for taxes	(1,613)					$ (4)		(1,609)
Ending balance (in shares) at Dec. 31, 2021				125		53,410,411
Ending balance at Dec. 31, 2021	$ 1,912,571			$ 125		$ 6,676		$ 985,818		$ 864,839			$ 55,113

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Stockholders' Equity [Abstract]
Cash dividends on common stock (in dollars per share)	$ 1.13	$ 1.04	$ 1.00
Accounting Standards Update [Extensible List]		us-gaap:AccountingStandardsUpdate201613Member

- Definition

Indicates amendment to accounting standards.

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+ Details

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash Flow From Operating Activities:
Net income	$ 205,531	$ 148,600	$ 164,460
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses	0	58,673	2,800
Depreciation and amortization	10,701	11,009	9,383
Change in deferred taxes	6,983	(9,735)	4,965
Share-based compensation	4,762	4,600	4,115
Loans originated for sale	(548,742)	(591,057)	(511,407)
Proceeds from sales of loans held for sale	557,744	611,945	513,357
Gains on sales of loans held for sale	(16,223)	(15,817)	(6,209)
Gains on sales of securities available for sale	(5,674)	(11,895)	(4,415)
Increase in cash surrender of life insurance	(4,873)	(5,040)	(4,518)
Gains on life insurance benefits	(2,187)	(100)	(19)
Change in interest receivable	(3,239)	(5,047)	(4,659)
Change in interest payable	(525)	(3,467)	1,090
Other adjustments	3,124	11,162	7,784
Net cash provided by operating activities	207,382	203,831	176,727
Cash Flows from Investing Activities:
Net change in interest-bearing deposits	(81,849)	(274,042)	199,928
Purchases of:
Securities available for sale	(931,368)	(613,117)	(676,791)
Securities held to maturity	(1,156,621)	(699,095)	(423,385)
Proceeds from sales of securities available for sale	181,333	231,391	132,837
Proceeds from maturities of:
Securities available for sale	279,367	322,617	138,356
Securities held to maturity	227,255	273,229	130,502
Net change in loans	(60,581)	(792,986)	(512,364)
Net cash and cash equivalents received (paid) in acquisition	(2,933)	0	10,207
Proceeds from the sale of other real estate owned	706	8,655	2,060
Proceeds from life insurance benefits	8,764	601	815
Proceeds from mortgage portfolio loan sale	78,159	0	0
Other investing activities	(11,678)	(9,278)	(8,564)
Net cash used in investing activities	(1,469,446)	(1,552,025)	(1,006,399)
Net change in :
Demand and savings deposits	1,556,127	2,336,120	883,524
Certificates of deposit and other time deposits	(185,160)	(814,466)	95,913
Borrowings	45,542	573,757	599,298
Repayment of borrowings	(96,204)	(621,548)	(643,169)
Cash dividends on common stock	(61,230)	(56,542)	(51,276)
Stock issued under employee benefit plans	605	639	702
Stock issued under dividend reinvestment and stock purchase plans	1,880	1,726	1,531
Stock options exercised	198	115	144
Repurchase of common stock	(25,444)	(55,912)	(19,041)
Net cash provided by financing activities	1,236,314	1,363,889	867,626
Net Change in Cash and Cash Equivalents	(25,750)	15,695	37,954
Cash and Cash Equivalents, January 1	192,896	177,201	139,247
Cash and Cash Equivalents, December 31	167,146	192,896	177,201
Additional cash flow information:
Interest paid	36,477	69,848	107,598
Income tax paid	31,168	33,201	23,588
Loans transferred to other real estate owned	292	813	7,031
Fixed assets transferred to other assets	6,384	262	1,210
Non-cash investing activities using trade date accounting	39,923	6,183	0
ROU assets obtained in exchange for new operating lease liabilities	2,700	1,601	23,529
Liabilities assumed in conjunction with acquisitions
Fair value of assets acquired	4,041	0	1,451,287
Cash received (paid) in acquisition	(3,225)	0	(15)
Less: Common stock issued	0	0	229,926
Liabilities assumed	$ 816	$ 0	$ 1,221,346

Nature of Operations and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Nature of Operations and Summary of Significant Accounting Policies

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

FINANCIAL STATEMENT PREPARATION

The accounting and reporting policies of the Corporation and the Bank, conform to accounting principles generally accepted in the United States of America and reporting practices followed by the banking industry. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses and fair value of financial instruments. Reclassifications have been made to prior financial statements to conform to the current financial statement presentation. The uncertainties related to COVID-19 could cause significant changes to these estimates compared to what was known at the time these financial statements were prepared.

The Corporation is a financial holding company whose principal activity is the ownership and management of the Bank and operates in a single significant business segment. The Bank provides full banking services under an Indiana state-charter. Additionally, the Bank operates as First Merchants Private Wealth Advisors (a division of First Merchants Bank). The Bank generates commercial, mortgage, and consumer loans and receives deposits from customers located primarily in central and northern Indiana, northeast Illinois, central Ohio and southeast Michigan counties. The Bank’s loans are generally secured by specific items of collateral, including real property, consumer assets and business assets.

A brief description of current accounting practices and current valuation methodologies are presented below.

CONSOLIDATION

The consolidation of the Corporation's financial statements include the accounts of the Corporation and all its subsidiaries, after elimination of all material intercompany transactions.

BUSINESS COMBINATIONS

Business combinations are accounted for under the acquisition method of accounting. Under the acquisition method, assets and liabilities of the business acquired are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired recorded as goodwill. Results of operations of the acquired business are included in the income statement from the date of acquisition. Details of the Corporation's acquisitions are included in NOTE 2. ACQUISITIONS of these Notes to Consolidated Financial Statements.

CASH AND CASH EQUIVALENTS

Cash on hand, cash items in process of collection and non-interest bearing cash held at various banks are included in cash and cash equivalents and have a maturity of less than three months. The Corporation maintains deposits with other financial institutions in amounts that exceed federal deposit insurance coverage. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes there is not significant credit risk on cash and cash equivalents.

INTEREST-BEARING DEPOSITS

Interest-bearing cash held at various banks and the Federal Reserve Bank and federal funds sold are included in interest-bearing deposits and have a maturity of less than three months. The Corporation maintains deposits with other financial institutions in amounts that exceed federal deposit insurance coverage. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes there is not significant credit risk on interest-bearing deposits.

INVESTMENT SECURITIES

Held to maturity securities are carried at amortized cost when the Corporation has the positive intent and ability to hold them until maturity. Available for sale securities are recorded at fair value on a recurring basis with the unrealized gains and losses, net of applicable income taxes, recorded in other comprehensive income (loss). Realized gains and losses are recorded in earnings and the prior fair value adjustments are reclassified within stockholders' equity. Gains and losses on sales of securities are determined on the specific-identification method. Amortization of premiums and accretion of discounts are amortized to their earliest call date and are recorded as interest income from securities. Details of the Corporation's investment securities portfolio are included in NOTE 4. INVESTMENT SECURITIES of these Notes to Consolidated Financial Statements.

ALLOWANCE FOR CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE FOR SALE

For investment securities available for sale in an unrealized loss position, the Corporation first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For investment securities available for sale that do not meet the aforementioned criteria, the Corporation evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Corporation considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Unrealized losses that have not been recorded through an allowance for credit losses are recognized in other comprehensive income. Adjustments to the allowance for credit losses are reported in the income statement as a component of the provision for credit loss. The Corporation has made the accounting policy election to exclude accrued interest receivable on investment securities available for sale from the estimate of credit losses. Investment securities available for sale are charged off against the allowance or, in the absence of any allowance, written down through the income statement when deemed uncollectible or when either of the aforementioned criteria regarding intent or requirement to sell is met. The Corporation did not record an allowance for credit losses on its investment securities available for sale as the unrealized losses were attributable to changes in interest rates, not credit quality. Details of the Corporation's allowance for credit losses on investment securities available for sale are included in NOTE 4. INVESTMENT SECURITIES of these Notes to Consolidated Financial Statements.

ALLOWANCE FOR CREDIT LOSSES ON INVESTMENT SECURITIES HELD TO MATURITY ("ACL - INVESTMENTS")

The ACL - Investments is a contra asset-valuation account that is deducted from the amortized cost basis of investment securities held to maturity to present the net amount expected to be collected. Investment securities held to maturity are charged off against the ACL - Investments when deemed uncollectible. Adjustments to the ACL - Investments are reported in the income statement as a component of the provision for credit loss. The Corporation measures expected credit losses on held to maturity debt securities on a collective basis by major security type with each type sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Corporation has made the accounting policy election to exclude accrued interest receivable on investment securities held to maturity from the estimate of credit losses. With regard to U.S. Government-sponsored agency and mortgage-backed securities, all these securities are issued by a U.S. government-sponsored entity and have an implicit or explicit government guarantee. With regard to securities issued by states and municipalities and other investment securities held to maturity, management considers (1) issuer bond ratings, (2) the financial condition of the issuer, (3) historical loss rates for given bond ratings, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities. Historical loss rates associated with securities having similar grades as those in the Corporation's portfolio have generally not been significant. An allowance for credit losses of $245,000 was recorded on state and municipal securities classified as held to maturity based on applying the long-term historical credit loss rate, as published by Moody’s, for similarly rated securities. Details of the Corporation's ACL - Investments are included in NOTE 4. INVESTMENT SECURITIES of these Notes to Consolidated Financial Statements. The Corporation adopted CECL on January 1, 2021 and the impact at adoption is described below under the heading "RECENT ACCOUNTING CHANGES ADOPTED IN 2021."

LOANS HELD FOR SALE

Loans originated and with an intent to sell are classified as held for sale and are carried at the principal amount outstanding. The carrying amount approximates fair value due to the short duration between origination and the date of sale.

LOANS

The Corporation’s loan portfolio is carried at the principal amount outstanding, net of unearned income and principal charge-offs. Loan origination fees, net of direct loan origination costs, and commitment fees are deferred and amortized as an adjustment to yield over the life of the loan, or over the commitment period, as applicable. Interest income is accrued on the principal balances of loans. The accrual of interest is discontinued on a loan when, in management’s opinion, the borrower may be unable to meet payments as they become due. When the interest accrual is discontinued, all unpaid accrued interest is reversed against earnings when considered uncollectible. Interest income accrued in the prior year, if any, is charged to the allowance for credit losses. Interest income is subsequently recognized only to the extent cash payments are received and the loan is returned to accruing status.

The Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) established the Paycheck Protection Program (“PPP”), which is administered by the Small Business Administration (“SBA”), to fund payroll and operational costs of eligible businesses, organizations and self-employed persons during the pandemic. The Bank actively participated in assisting its customers with PPP funding during all phases of the program. The vast majority of the Bank’s PPP loans made in 2020 have two-year maturities, while the loans made in 2021 have five-year maturities. Loans under the program earn interest at a fixed rate of 1 percent. As of December 31, 2021, the Corporation had $106.6 million of PPP loans compared to the December 31, 2020 balance of $667.1 million. The Corporation will continue to monitor legislative, regulatory, and supervisory developments related to the PPP. However, it anticipates that the majority of the Bank’s remaining PPP loans will be forgiven by the SBA in accordance with the terms of the program.

Loan commitments and letters-of-credit generally have short-term, variable-rate features and contain clauses which limit the exposure to changes in customer credit quality. Accordingly, their carrying values, which are immaterial at the respective balance sheet dates, are reasonable estimates of fair value. Details of the Corporation's loan portfolio are included in NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES of these Notes to Consolidated Financial Statements.

PURCHASED CREDIT DETERIORATED ("PCD") LOANS

The Corporation has purchased loans, some of which have experienced more than insignificant credit deterioration since origination. PCD loans are recorded at the amount paid. An allowance for credit losses is determined using the same methodology as other loans held for investment. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is the noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through the provision for credit losses.

ALLOWANCE FOR CREDIT LOSSES - LOANS ("ACL - Loans")

The ACL - Loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on loans over the contractual term. Loans are charged off against the allowance when the uncollectibility of the loan is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. Adjustments to the ACL - Loans are reported in the income statement as a component of provision for credit loss. The Corporation has made the accounting policy election to exclude accrued interest receivable on loans from the estimate of credit losses. Further information regarding the policies and methodology used to estimate the ACL - Loans is detailed in NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES of these Notes to Consolidated Financial Statements. The Corporation adopted CECL on January 1, 2021 and the impact at adoption is described below under the heading "RECENT ACCOUNTING CHANGES ADOPTED IN 2021."

ALLOWANCE FOR LOAN LOSSES (prior to January 1, 2021 CECL adoption)

The Corporation's allowance for loan losses was maintained to absorb losses inherent in the loan portfolio and was based on ongoing, quarterly assessments of the probable losses inherent in the loan portfolio. The allowance was increased by the provision for loan losses, which was charged against current operating results. Loan losses were charged against the allowance when management believed the uncollectability of a loan was confirmed. Subsequent recoveries, if any, were credited to the allowance. The Corporation’s strategy for credit risk management included credit policies and underwriting criteria for all loans, as well as an overall credit limit for each customer significantly below legal lending limits. The strategy also emphasized diversification on regional geographic and industry levels, regular credit quality reviews and management reviews of large credit exposures and loans experiencing deterioration of credit quality.

The Corporation’s methodology for assessing the appropriateness of the allowance consisted of three key elements – the determination of the appropriate reserves for impaired loans accounted for under ASC 310-10, probable losses estimated from historical loss rates, and probable losses resulting from economic, environmental, qualitative or other deterioration above and beyond what were reflected in the first two components of the allowance.

Where appropriate, reserves were allocated to individual loans based on management’s estimate of the borrower’s ability to repay the loan given the availability of collateral, other sources of cash flow and legal options available to the Corporation. Loans individually evaluated for impairment were those deemed impaired in accordance with ASC 310-10, including commercial relationships greater than $500,000 that exhibited well defined credit weaknesses. Any allowances for impaired loans were measured based on the fair value of the underlying collateral, if collateral dependent, or the present value of expected future cash flows discounted at the loan’s effective interest rate. The Corporation evaluated the collectability of principal when assessing the need for a loss accrual. Historical loss rates were applied to other commercial loans not subject to specific reserve allocations.

The historical allocation for commercial loans graded pass were established by loan segments using loss rates based on the Corporation’s migration analysis. This migration analysis showed the loss rates for each segment of loans based on the loan grades at the beginning of the twelve month period. This loss rate was then applied to the current portfolio of loans in each respective loan segment.

Homogenous loans, such as consumer installment and residential mortgage loans, were not individually risk graded. Reserves were established for each segment of loans using loss rates based on charge-offs for the same period as the migration analysis used for commercial loans.

In addition to the specific reserves and historical loss components of the allowance, consideration was given to various environmental factors to help ensure that losses inherent in the portfolio were reflected in the allowance for loan losses. Factors which management considered in the analysis included the effects of the national and local economies, trends in loan growth and charge-off rates, changes in mix, concentration of loans in specific industries, asset quality trends (delinquencies, charge-offs and non-accrual loans), risk management and loan administration, changes in the internal lending policies and credit standards, examination results from bank regulatory agencies and the Corporation’s internal loan review.

PENSION

The Corporation has defined-benefit pension plans, including non-qualified plans for certain employees, former employees and former non-employee directors. In 2005, the Board of Directors of the Corporation approved the curtailment of the accumulation of defined benefits for future services provided by certain participants in the First Merchants Corporation Retirement Plan. No additional pension benefits have been earned by any employees who had not met certain requirements as of March 1, 2005. The benefits are based primarily on years of service and employees’ pay near retirement. The Corporation's accounting policies related to pensions and other post retirement benefits reflect the guidance in ASC 715, Compensation – Retirement Benefits. The Corporation does not consolidate the assets and liabilities associated with the pension plan. Instead, the Corporation recognizes the funded status of the plan in the consolidated balance sheets. The measurement of the funded status and the annual pension expense involves actuarial and economic assumptions. Various statistical and other factors, which attempt to anticipate future events, are used in calculating the expense and liabilities related to the plans. Key factors include assumptions on the expected rates of return on plan assets, discount rates, expected rates of salary increases and health care costs and trends. The Corporation considers market conditions, including changes in investment returns and interest rates in making these assumptions. The primary assumptions used in determining the Corporation’s pension and post retirement benefit obligations and related expenses are presented in NOTE 18. PENSION AND OTHER POST RETIREMENT BENEFIT PLANS of these Notes to Consolidated Financial Statements.

PREMISES AND EQUIPMENT

Premises and equipment is carried at cost net of accumulated depreciation. Depreciation is computed using the straight-line and declining balance methods based on the estimated useful lives of the assets ranging from three to forty years. Maintenance and repairs are expensed as incurred, while major additions and improvements, which extend the useful life, are capitalized. Gains and losses on dispositions are included in current operations. Details of the Corporation's premises and equipment are included in NOTE 6. PREMISES AND EQUIPMENT of these Notes to Consolidated Financial Statements.

LEASES

The Corporation leases certain land and premises from third parties and all are classified as operating leases. Operating leases are included in Other Assets and Other Liabilities on the Corporation's Consolidated Balance Sheets and lease expense for lease payments is recognized on a straight-line basis over the lease term. Right of Use ("ROU") assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the term. An ROU asset represents the right to use the underlying asset for the lease term and also includes any direct costs and payments made prior to lease commencement and excludes lease incentives. When an implicit rate is not available, an incremental borrowing rate based on the information available at commencement date is used in determining the present value of the lease payments. A lease term may include an option to extend or terminate the lease when it is reasonably certain the option will be exercised. Short-term leases of twelve months or less are excluded from accounting guidance; as a result, the lease payments are recognized on a straight-line basis over the lease term and the leases are not reflected on the Corporation's Consolidated Balance Sheets. Renewal and termination options are considered when determining short-term leases. Leases are accounted for at the individual level. Details of the Corporation's leases are included in NOTE 9. LEASES of these Notes to Consolidated Financial Statements.

FEDERAL HOME LOAN BANK STOCK ("FHLB")

FHLB stock is a required investment for institutions that are members of the FHLB. The Bank is a member of the FHLB of Indianapolis. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.

INTANGIBLE ASSETS

Intangible assets that are subject to amortization, including core deposit intangibles, are being amortized on both the straight-line and accelerated basis over two to ten years. Intangible assets are periodically evaluated as to the recoverability of their carrying value. Details of the Corporation's other intangible assets are included in NOTE 8. OTHER INTANGIBLES of these Notes to Consolidated Financial Statements.

GOODWILL

Goodwill is maintained by applying the provisions of ASC 350, Intangibles – Goodwill and Other. For acquisitions, assets acquired, including identified intangible assets, and the liabilities assumed are required to be recorded at their fair value. These often involve estimates based on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analysis or other valuation techniques that may include estimates of attrition, inflation, asset growth rates, or other relevant factors. In addition, the determination of the useful lives over which the intangible asset will be amortized is subjective.

Under ASC 350, the Corporation is required to evaluate goodwill for impairment on an annual basis, as well as on an interim basis, if events or changes indicate that the asset may be impaired, indicating that the carrying value may not be recoverable. The Corporation completed its most recent annual goodwill impairment test as of October 1, 2021 and concluded, based on current events and circumstances goodwill is not impaired. Details of the Corporation's goodwill are included in NOTE 7. GOODWILL of these Notes to Consolidated Financial Statements.

BANK OWNED LIFE INSURANCE ("BOLI")

BOLI policies have been purchased, as well as obtained through acquisitions, on certain current and former employees and directors of the Corporation to offset a portion of the employee benefit costs. The Corporation records the life insurance at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or amounts due that are probable at settlement. Changes in cash surrender values and death benefits received in excess of cash surrender values are reported in non-interest income. A corporate policy is in place with defined thresholds that limit the amount of credit, interest rate and liquidity risk inherent in a BOLI portfolio. The Corporation actively monitors the overall portfolio performance along with the credit quality of the insurance carriers and the credit quality and yield of the underlying investments.

OTHER REAL ESTATE OWNED ("OREO")

OREO consists of assets acquired through, or in lieu of, loan foreclosure and are held for sale. They are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation are included in other real estate owned and foreclosure expenses.

DERIVATIVE INSTRUMENTS

Derivative instruments, which are recorded as assets or liabilities in the consolidated balance sheets, are carried at fair value of the derivatives and reflects the estimated amounts that would have been received to terminate these contracts at the reporting date based upon pricing or valuation models applied to current market information. As part of the asset/liability management program, the Corporation will utilize, from time to time, interest rate floors, caps or swaps to reduce its sensitivity to interest rate fluctuations. Changes in the fair values of derivatives are reported in the consolidated statements of operations or AOCI depending on the use of the derivative and whether the instrument qualifies for hedge accounting. The key criterion for hedge accounting is that the hedged relationship must be highly effective in achieving offsetting changes in those cash flows that are attributable to the hedged risk, both at inception of the hedge and on an ongoing basis.

Derivatives that qualify for the hedge accounting treatment are designated as either: (1) a hedge of the fair value of the recognized asset or liability, or of an unrecognized firm commitment (a fair value hedge); or (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (a cash flow hedge). To date, the Corporation has only entered into a cash flow hedge. For cash flow hedges, changes in the fair values of the derivative instruments are reported in AOCI to the extent the hedge is effective. The gains and losses on derivative instruments that are reported in AOCI are reflected in the consolidated statements of income in the periods in which the results of operations are impacted by the variability of the cash flows of the hedged item. Generally, net interest income is increased or decreased by amounts receivable or payable with respect to the derivatives, which qualify for hedge accounting. At inception of the hedge, the Corporation establishes the method it uses for assessing the effectiveness of the hedging derivative and the measurement approach for determining the ineffective aspect of the hedge. The ineffective portion of the hedge, if any, is recognized in the consolidated statements of income. The Corporation excludes the time value expiration of the hedge when measuring ineffectiveness.

The Corporation offers interest rate derivative products (e.g. interest rate swaps) to certain of its high-quality commercial borrowers. This product allows customers to enter into an agreement with the Corporation to swap their variable rate loan to a fixed rate. These derivative products are designed to reduce, eliminate or modify the risk of changes in the borrower’s interest rate or market price risk. The extension of credit incurred through the execution of these derivative products is subject to the same approvals and rigorous underwriting standards as the related traditional credit product. The Corporation limits its risk exposure to these products by entering into a mirror-image, offsetting swap agreement with a separate, well-capitalized and rated counterparty previously approved by the Credit and Asset Liability Committee. By using these interest rate swap arrangements, the Corporation is also better insulated from the interest rate risk associated with underwriting fixed-rate loans. These derivative contracts are not designated against specific assets or liabilities under ASC 815, Derivatives and Hedging, and, therefore, do not qualify for hedge accounting. The derivatives are recorded on the balance sheet at fair value and changes in fair value of both the customer and the offsetting swap agreements are recorded (and essentially offset) in non-interest income. The fair value of the derivative instruments incorporates a consideration of credit risk (in accordance with ASC 820, Fair Value Measurements and Disclosures), resulting in some volatility in earnings each period. Details of the Corporation's derivative instruments are included in NOTE 12. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES of these Notes to Consolidated Financial Statements.

SECURITIES SOLD UNDER REPURCHASE AGREEMENTS

Securities sold under repurchase agreements represent securities the Corporation routinely sells to certain treasury management customers and then repurchases these securities the next day. Securities sold under repurchase agreements are reflected as secured borrowings in the consolidated balance sheets at the amount of cash received in connection with each transaction. Details of the Corporation's repurchase agreements are included in NOTE 11. BORROWINGS of these Notes to Consolidated Financial Statements.

ALLOWANCE FOR CREDIT LOSSES - OFF-BALANCE SHEET CREDIT EXPOSURES

The allowance for credit losses on off-balance sheet credit exposures is a liability account representing expected credit losses over the contractual period for which the Corporation is exposed to credit risk resulting from a contractual obligation to extend credit. No allowance is recognized if the Corporation has the unconditional right to cancel the obligation. Off-balance sheet credit exposures primarily consist of amounts available under outstanding lines of credit and letters of credit. For the period of exposure, the estimate of expected credit losses considers both the likelihood that funding will occur and the amount expected to be funded over the estimated remaining life of the commitment or other off-balance sheet exposure. The likelihood and expected amount of funding are based on historical utilization rates. The amount of the allowance represents management’s best estimate of expected credit losses on commitments expected to be funded over the contractual life of the commitment. The allowance for off-balance sheet credit exposures is adjusted through the income statement as a component of provision for credit loss. Further information regarding the policies and methodology used to estimate the allowance for credit losses on off-balance sheet credit exposures is detailed in NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES of these Notes to Consolidated Financial Statements. The Corporation adopted CECL on January 1, 2021 and the impact at adoption is described below under the heading "RECENT ACCOUNTING CHANGES ADOPTED IN 2021."

REVENUE RECOGNITION

Revenue recognition guidance establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.

The majority of the Corporation's revenue-generating transactions are not subject to ASU 2014-09, including revenue generated from financial instruments, such as loans, letters of credit, derivatives and investment securities, as well as revenue related to mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within the disclosures. The Corporation has evaluated the nature of its contracts

with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. Descriptions of revenue-generating activities that are within the scope of ASU 2014-09, which are presented in our income statements are as follows:

Service charges on deposit accounts: The Corporation earns fees from its deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering and ACH fees, are recognized at the time the transaction is executed, which is the point in time the Corporation fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned monthly, representing the period which the Corporation satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance.

Fiduciary activities: This represents monthly fees due from wealth management customers as consideration for managing the customers' assets. Wealth management and trust services include custody of assets, investment management, fees for trust services and similar fiduciary activities. These fees are primarily earned over time as the Corporation provides the contracted monthly or quarterly services and are generally assessed based on the market value of assets under management at month-end. Fees that are transaction-based are recognized at the point in time that the transaction is executed.

Investment Brokerage Fees: The Corporation earns fees from investment brokerage services provided to its customers by a third-party service provider. The Corporation receives commissions from the third-party provider on a monthly basis based upon customer activity for the month. The fees are paid to us by the third party on a monthly basis and are recognized when received.

Interchange income: The Corporation earns interchange fees from debit and credit cardholder transactions conducted through the Visa and MasterCard payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized concurrent with the transaction processing services provided to the cardholder.

Gains (Losses) on Sales of OREO: The Corporation records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Corporation finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Corporation adjusts the transaction price and related gain (loss) on sale if a significant financing component is present.

TRANSFERS OF FINANCIAL ASSETS

Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered, or in the case of a loan participation, a portion of the asset has been surrendered and meets the definition of a "participating interest." Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation and put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets.

SHARE-BASED COMPENSATION

Stock option and restricted stock award plans are maintained by the Corporation. The compensation costs are recognized for stock options and restricted stock awards issued to employees and directors based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options. The market price of the Corporation’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the appropriate service period, which is generally two to five years. Details of the Corporation's share-based compensation are included in NOTE 17. SHARE-BASED COMPENSATION of these Notes to Consolidated Financial Statements.

INCOME TAX

Income tax expense in the consolidated statements of income is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts from the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. The Corporation files consolidated income tax returns with its subsidiaries. The Corporation is generally no longer subject to U.S. federal, state and local income tax examinations by tax authorities for tax years before 2018.

The Corporation accounts for income taxes under the provisions of ASC 740, Income Taxes, which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. Per the guidance in ASC 740, the Corporation has not identified any uncertain tax positions that it believes should be recognized in the financial statements. The Corporation reviews income tax expense and the carrying value of deferred tax assets and liabilities quarterly; as new information becomes available, the balances are adjusted, if applicable. The Corporation's policy is to recognize interest and penalties related to unrecognized tax benefits, if any, as a component of income tax expense. Details of the Corporation's income taxes are included in NOTE 19. INCOME TAX of these Notes to Consolidated Financial Statements.

NET INCOME PER SHARE

Basic net income per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding. Diluted net income per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding, plus the dilutive effect of outstanding stock options and non-vested restricted stock awards. Potentially dilutive common shares are excluded from the computation of diluted earnings per share in the periods where the effect would be antidilutive. Details of the Corporation's net income per share are included in NOTE 20. NET INCOME PER SHARE of these Notes to Consolidated Financial Statements.

IMPACT OF COVID-19

On January 30, 2020, the World Health Organization (“WHO”) announced that the outbreak of COVID-19 constituted a public health emergency of international concern. On March 11, 2020, WHO declared COVID-19 to be a global pandemic and, on March 13, 2020, the President of the United States declared the COVID-19 outbreak a national emergency. In the two years since then, the pandemic has dramatically impacted global health and the economic environment, including millions of confirmed cases and deaths, business slowdowns or shutdowns, labor shortfalls, supply chain challenges, regulatory challenges, and market volatility. In response, the U.S. Congress, through the enactment of the CARES Act in March 2020, and the federal banking agencies, though rulemaking, interpretive guidance and modifications to agency policies and procedures, have taken a series of actions to provide emergency economic relief measures including, among others, the following:

Paycheck Protection Program. The CARES Act established the PPP, which is administered by the SBA, to fund payroll and operational costs of eligible businesses, organizations and self-employed persons during the pandemic. The Bank actively participated in assisting its customers with PPP funding during all phases of the program. The vast majority of the Bank’s PPP loans made in 2020 have two-year maturities, while the loans made in 2021 have five-year maturities. Loans under the program earn interest at a fixed rate of 1 percent. As of December 31, 2021, the Corporation had $106.6 million of PPP loans outstanding compared to the December 31, 2020 balance of $667.1 million. The Corporation will continue to monitor legislative, regulatory, and supervisory developments related to the PPP. However, it anticipates that the majority of the Bank’s remaining PPP loans will be forgiven by the SBA in accordance with the terms of the program

Loan Modifications and Troubled Debt Restructures. The CARES Act, as amended by the 2021 Consolidated Appropriations Act (the "2021 CAA"), allowed banks to suspend requirements under GAAP, effectively, through January 1, 2022, for certain loan modifications related to the COVID-19 pandemic. The federal banking agencies also issued guidance to encourage banks to make loan modifications for borrowers affected by COVID-19 or offer other borrower friendly options. In accordance with such guidance, the Bank made various short-term modifications for borrowers who were current and otherwise not past due. These included short-term, 180 days or less, modifications in the form of payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that were insignificant.

The continued impact of COVID-19 on the Corporation will depend on numerous factors and future developments that are highly uncertain and cannot be predicted with confidence. It is unknown how long the COVID-19 pandemic will last, or when restrictions on individuals and businesses will be fully lifted and businesses and their employees will be able to resume normal activities. Additional information may emerge regarding new developments with COVID-19 and additional actions may be taken by federal, state and local governments to contain COVID-19 or treat its impact. Changes in the behavior of customers, businesses and their employees as a result of COVID-19 pandemic are also unknown. As a result of COVID-19 and the actions taken to contain it or reduce its impact, the Corporation may continue to experience changes in the demand for our products and services, changes in the value of collateral securing outstanding loans, reductions in the credit quality of borrowers and the inability of borrowers to repay loans in accordance with their terms. Commercial and consumer customers are experiencing varying degrees of financial distress, which is expected to continue into 2022, especially if positive cases increase and economic shutdowns are reinstated. These and similar factors and events may have substantial negative effects on the business, financial condition and results of operations of the Corporation and its customers.

RECENT ACCOUNTING CHANGES ADOPTED IN 2021

FASB Accounting Standards Updates No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

Summary - The FASB issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This new guidance replaced the previous “incurred loss” model for recognizing credit losses with an “expected life of loan loss” model referred to as the Current Expected Credit Loss ("CECL") model.

Under the CECL model, certain financial assets carried at amortized cost, such as loans held for investment and held-to-maturity debt securities, are required to be presented at the net amount expected to be collected. The measurement of expected credit losses is to be based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This measurement will take place at the time the financial asset is first added to the balance sheet and periodically thereafter. This differs significantly from the “incurred loss” model required under current GAAP, which delayed recognition until it is probable a loss has been incurred.

The Corporation developed models that satisfy the requirements of the new standard which are governed by a system of internal controls and a cross-functional working group consisting of accounting, finance, and credit administration personnel. The loan portfolio was pooled into ten loan segments with similar risk characteristics for which the probability of default/loss given default methodology was applied. The Corporation utilized a one-year reasonable and supportable economic forecast followed by a six-quarter, straight-line reversion period to the historical macroeconomic mean for the remaining life of the portfolio. A baseline macroeconomic scenario, along with other scenarios, were used to develop a range of estimated credit losses for which to determine the best estimate within.

The ASU was effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Pursuant to the CARES Act and the related joint statement of federal banking regulators (which also became effective as of March 27, 2020), and consistent with guidance from the SEC and FASB, the Corporation elected to delay implementation of ASU No. 2016-13, which was set to expire on December 31, 2020. However, the CAA (as discussed above) extended the temporary relief from CECL compliance to the earlier of the first day of the fiscal year that begins after the date on which the national emergency concerning COVID-19 terminates, or January 1, 2022. The Corporation elected to delay implementation of CECL following the approval of the CARES Act and, with the enactment of the CAA, the Corporation adopted CECL on January 1, 2021. This allowed the Corporation to utilize the CECL standard for the entire year of 2021, while its 2020 financial statements were prepared under the incurred loss model.

As of the adoption and day one measurement date of January 1, 2021, the Corporation recorded a one-time cumulative-effect adjustment to retained earnings, net of income taxes, on the consolidated balance sheet of $68.0 million. The allowance for credit losses - loans increased 57 percent from December 31, 2020, or $74.1 million, because it covered expected credit losses over the life of the loan portfolio, which approximates four years, and it included an allowance on all purchased loans that were previously excluded from the allowance for loan loss calculation. CECL also requires the establishment of a reserve for potential losses from unfunded commitments that is recorded in other liabilities, separate from the allowance for credit losses, which was approximately $20.5 million. An allowance for credit losses of $245,000 was recorded on the state and municipal securities classified as held-to-maturity based on applying the long-term historical credit loss rate, as published by Moody's for similarly rated securities. The following table details the impact of the adoption of CECL on the Corporation's balance sheet as of January 1, 2021.


	December 31, 2020		Impact of CECL Adoption		January 1, 2021 Post-CECL Adoption
Assets:
Held to maturity securities	$	1,227,668	$	(245)	$	1,227,423
Loans	9,243,174		4,776		9,247,950
Allowance for credit losses - loans	(130,648)		(74,055)		(204,703)
Net loans	9,112,526		(69,279)		9,043,247
Tax asset, deferred and receivable	12,340		21,984		34,324

Liabilities:
Allowance for credit losses on unfunded loan commitments	—		20,500		20,500

Stockholder's Equity:
Retained Earnings	788,578		(68,040)		720,538
			—

FASB Accounting Standards Updates No. 2019-11 - Codification Improvements to (Topic 326): Financial Instruments - Credit Losses

Summary - The FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses in order to address issues raised by stakeholders during the implementation of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments.

Among other narrow-scope improvements, the new ASU clarified guidance around how to report expected recoveries. “Expected recoveries” describes a situation in which an organization recognizes a full or partial write-off of the amortized cost basis of a financial asset, but then later determines that the amount written off, or a portion of that amount, will in fact be recovered. While applying the credit losses standard, stakeholders questioned whether expected recoveries were permitted on assets that had already shown credit deterioration at the time of purchase (also known as PCD assets). In response to this question, the ASU permitted organizations to record expected recoveries on PCD assets. In addition to other narrow technical improvements, the ASU also reinforced existing guidance that prohibits organizations from recording negative allowances for available-for-sale debt securities.

The ASU includes effective dates and transition requirements that vary depending on whether or not an entity adopted ASU No. 2016-13. As discussed above, pursuant to the CARES Act, the Corporation elected to defer the adoption of CECL Additionally, the 2021 CAA, signed into law on December 27, 2020, amended the CARES Act by extending the temporary relief from CECL compliance to January 1, 2022. The Corporation elected to delay implementation of CECL following the approval of the CARES Act and, with the enactment of the 2021 CAA, the Corporation adopted CECL on January 1, 2021. The adoption of this standard did not have a significant effect on the Corporation’s consolidated financial statements or disclosures.

FASB Accounting Standards Update No. 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

Summary - The FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is expected to reduce cost and complexity related to the accounting for income taxes.

The ASU removed specific exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles (GAAP). It eliminated the need for an organization to analyze whether the following apply in a given period:

• Exception to the incremental approach for intraperiod tax allocation;

• Exceptions to accounting for basis differences when there are ownership changes in foreign investments; and

• Exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses.

The ASU also improved financial statement preparers’ application of income tax-related guidance and simplifies GAAP for:

• Franchise taxes that are partially based on income;

• Transactions with a government that result in a step up in the tax basis of goodwill

• Separate financial statements of legal entities that are not subject to tax; and

• Enacted changes in tax laws in interim periods.

The ASU is part of the FASB’s simplification initiative to make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. For public business entities, the ASU was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the ASU was permitted. The Corporation adopted this standard on January 1, 2021 and adoption of this standard did not have a significant effect on the Corporation's consolidated financial statements or disclosures.

NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED

The Corporation continually monitors potential accounting pronouncement and SEC release changes. The following pronouncements and releases have been deemed to have the most applicability to the Corporation's financial statements:

FASB Accounting Standards Updates - No. 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

Summary - The FASB issued ASU No. 2020-04 to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. LIBOR and other interbank offered rates are widely used benchmarks or reference rates in the United States and globally. Trillions of dollars in loans, derivatives, and other financial contracts reference LIBOR, the benchmark interest rate banks use to make short-term loans to each other. With global capital markets expected to move away from LIBOR and other interbank offered rates and move toward rates that are more observable or transaction based and less susceptible to manipulation, the FASB launched a broad project in late 2018 to address potential accounting challenges expected to arise from the transition. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period.

Entities may apply this ASU as of the beginning of an interim period that includes the March 12, 2020 issuance date of the ASU, through December 31, 2022. The Corporation expects to adopt the practical expedients included in the ASU prior to December 31, 2022. The Corporation is implementing a transition plan to identify and modify its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Corporation is assessing ASU 2020-04 and its impact on the Corporation's transition away from LIBOR for its loans and other financial instruments.

FASB Accounting Standards Updates - No. 2021-01 - Reference Rate Reform (Topic 848): Scope

Summary - The FASB has published ASU 2021-01, Reference Rate Reform. ASU 2021-01 clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition.

An entity may elect to apply the amendments in this Update on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date within an interim period that includes or is subsequent to the date of the issuance of a final Update, up to the date that financial statements are available to be issued.

If an entity elects to apply any of the amendments in this Update for an eligible hedging relationship, any adjustments as a result of those elections must be reflected as of the date the entity applies the election.

The amendments in this Update do not apply to contract modifications made after December 31, 2022, new hedging relationships entered into after December 31, 2022, and existing hedging relationships evaluated for effectiveness in periods after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that apply certain optional expedients in which the accounting effects are recorded through the end of the hedging relationship (including periods after December 31, 2022). The Corporation is assessing ASU 2021-01 and its impact on the Corporation's transition away from LIBOR for its loans and other financial instruments.

FASB Accounting Standards Updates - No. 2021-08 - Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

Summary - The FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, that addresses diversity in practice related to the accounting for revenue contracts with customers acquired in a business combination.

Under current GAAP, an acquirer generally recognizes assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers and other similar contracts that are accounted for in accordance with Topic 606, Revenue from Contracts with Customers, at fair value on the acquisition date.

The FASB indicates that some stakeholders indicated that it is unclear how an acquirer should evaluate whether to recognize a contract liability from a revenue contract with a customer acquired in a business combination after Topic 606 is adopted. Furthermore, it was identified that under current practice, the timing of payment (payment terms) of a revenue contract may subsequently affect the post-acquisition revenue recognized by the acquirer. To address this, the ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. Finally, the amendments in the ASU improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination.

For public business entities, the amendments are effective for fiscal years beginning after December 31, 2022, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 31, 2023, including interim periods within those fiscal years. The amendments in this Update should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the amendments is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period or early application, and (2) prospectively to all business combinations that occur on or after the date of initial application. The Corporation is reviewing the terms of this guidance, but adoption of the standard is not expected to have a significant impact on the Corporation's financial statements or disclosures.

Acquisitions

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Acquisitions

ACQUISITIONS

Hoosier Trust Company

On April 1, 2021, the Bank acquired 100 percent of Hoosier Trust Company ("Hoosier") through a merger of Hoosier with and into the Bank. The consideration paid to shareholders of Hoosier at closing was $3,225,000 in cash. Prior to the acquisition, Hoosier was an Indiana corporate trust company, headquartered in Indianapolis, Indiana, with approximately $290 million in assets under management. Hoosier’s sole office is now being operated by the Bank as a limited service trust office.

Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair value on the date of the acquisition. Based on the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change based on the timing of the transaction, the purchase price for the Hoosier acquisition is detailed in the following table. If, prior to the end of the one-year measurement period for finalizing the purchase price allocation, information becomes available about facts and circumstances that existed as of the acquisition date, which would indicate adjustments are required to the purchase price allocation, such adjustments will be included in the purchase price allocation retrospectively.


	Fair Value
Cash and cash equivalents	$	292
Other assets	35
Other liabilities	(816)
Net tangible assets acquired	(489)
Customer relationship intangible	2,247
Goodwill	1,467
Purchase price	$	3,225

Of the total purchase price, $2,247,000 was allocated to a customer relationship intangible, which will be amortized over its estimated life of 10 years. The remaining purchase price was allocated to goodwill, which is deductible for tax purposes. Pro forma financial information of the Hoosier acquisition is not included in these disclosures as it is deemed immaterial.

Level One Bancorp, Inc.

On November 4, 2021, the Corporation and Level One Bancorp, Inc., a Michigan corporation ("Level One"), entered into an Agreement and Plan of Merger (the "Merger Agreement"), pursuant to which Level One will, subject to the terms and conditions of the Merger Agreement, merge with and into the Corporation (the "Merger"), whereupon the separate corporate existence of Level One will cease and the Corporation will survive. Immediately following the Merger, Level One's wholly owned subsidiary, Level One Bank, will be merged with and into the Bank, with the Bank as the surviving bank.

Subject to the terms and conditions of the Merger Agreement, upon the Merger becoming effective, the common shareholders of Level One will be entitled to received, for each outstanding share of Level One common stock, (a) a 0.7167 share (the "Exchange Ratio") of the Corporation's common stock, in a tax-free exchange, and (b) a cash payment of $10.17. The Exchange Ratio is subject to adjustments for stock splits, stock dividends, recapitalization, or similar transactions, or as otherwise described in the Merger Agreement. Fractional shares of the Corporation's common stock will not be issued in respect of fractional interests arising from the Exchange Ratio but will be paid in cash pursuant to the Merger Agreement.

Based on the number of shares of Level One common stock currently outstanding, the Corporation expects to issue approximately 5.5 million shares of its common stock, and pay approximately $77.7 million in cash, in exchange for all the issued and outstanding shares of Level One common stock. In addition, the Corporation expects to issue 10,000 shares of a newly created 7.5% non-cumulative perpetual preferred stock, with a liquidation preference of $2,500 per share, in exchange for the outstanding Level One Series B preferred stock. Based on the closing price of the Corporation's common stock on November 3, 2021, of $43.50 per share, the implied value for a share of Level One common stock is $41.35. The aggregate transaction value is estimated at approximately $323.5 million.

The Boards of Directors of both the Corporation and Level One have approved the Merger Agreement. The members of the Board of Directors of Level One have entered into a Voting Agreement pursuant to which each of them has agreed to vote their shares of Level One common stock in favor of the Merger. The Corporation has filed a Registration Statement on Form S-4 with the SEC in connection with the proposed Merger, including a Proxy Statement for Level One and Prospectus for the Corporation which have been submitted to the Level One common shareholders for their consideration at a meeting to be held on March 1, 2022. Consummation of the Merger remains subject to certain other closing conditions set forth in the Merger Agreement. For additional details, see the "HIGHLIGHTS FOR 2021" section of Management's Discussion and Analysis of Financial Condition and Results of Operations included as Item 7 of this Annual Report on Form 10-K.

Cash and Cash Equivalents and Interest-bearing Deposits	12 Months Ended
Cash and Cash Equivalents and Interest-bearing Deposits	Dec. 31, 2021
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents and Interest-bearing Deposits	CASH AND CASH EQUIVALENTS AND INTEREST-BEARING DEPOSITS At December 31, 2021, the Corporation’s non-interest bearing deposits, included in cash and cash equivalents, and interest-bearing deposits held at other institutions exceeded the $250,000 federally insured limits by approximately $208,437,000. Each correspondent bank’s financial performance and market rating are reviewed on a quarterly basis to ensure the Corporation has deposits only at institutions providing minimal risk for those exceeding the federally insured limits. Additionally, the Corporation had approximately $366,281,000 at the Federal Home Loan Bank and Federal Reserve Bank, which are government-sponsored entities not insured by the FDIC. The Corporation has historically been required to maintain reserve funds in cash and/or on deposit with the Federal Reserve Bank. However, the Federal Reserve announced on March 15, 2020 that in order to support the flow of credit to households and businesses during the COVID-19 pandemic, reserve requirement ratios would move to zero effective March 26, 2020. The reserve requirement ratios remained at zero as of December 31, 2021.

Investment Securities

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Investment Securities

INVESTMENT SECURITIES

The following table summarizes the amortized cost, gross unrealized gains and losses and approximate fair value of investment securities available for sale as of December 31, 2021 and December 31, 2020.


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale at December 31, 2021
U.S. Treasury	$	1,000	$	—	$	1	$	999
U.S. Government-sponsored agency securities	96,244		437		1,545		95,136
State and municipal	1,495,696		81,734		898		1,576,532
U.S. Government-sponsored mortgage-backed securities	671,684		7,109		11,188		667,605
Corporate obligations	4,031		256		8		4,279

Total available for sale	$	2,268,655	$	89,536	$	13,640	$	2,344,551


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale at December 31, 2020
U.S. Government-sponsored agency securities	$	43,437	$	1,571	$	—	$	45,008
State and municipal	1,168,711		89,420		246		1,257,885
U.S. Government-sponsored mortgage-backed securities	591,210		20,984		103		612,091
Corporate obligations	4,031		104		—		4,135

Total available for sale	$	1,807,389	$	112,079	$	349	$	1,919,119

The following table summarizes the amortized cost, gross unrealized gains and losses, approximate fair value and allowance for credit losses on investment securities held to maturity as of December 31, 2021 and December 31, 2020.


	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held to maturity at December 31, 2021
U.S. Government-sponsored agency securities	$	371,457	$	—	$	371,457	$	226	$	7,268	$	364,415
State and municipal	1,057,301		245		1,057,056		29,593		2,170		1,084,724
U.S. Government-sponsored mortgage-backed securities	749,789		—		749,789		7,957		5,881		751,865
Foreign investment	1,500		—		1,500		—		1		1,499
Total held to maturity	$	2,180,047	$	245	$	2,179,802	$	37,776	$	15,320	$	2,202,503


	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held to maturity at December 31, 2020
U.S. Government-sponsored agency securities	$	145,398	$	—	$	145,398	$	347	$	220	$	145,525
State and municipal	619,927		—		619,927		34,978		32		654,873
U.S. Government-sponsored mortgage-backed securities	460,843		—		460,843		17,552		—		478,395
Foreign investment	1,500		—		1,500		—		—		1,500
Total held to maturity	$	1,227,668	$	—	$	1,227,668	$	52,877	$	252	$	1,280,293

Accrued interest on investment securities available for sale and held to maturity of $26.8 million are included in the Interest Receivable line on the Corporation's CONSOLIDATED BALANCE SHEETS. The total amount of accrued interest is excluded from the amortized cost of available for sale and held to maturity securities presented above.

In determining the allowance for credit losses on investment securities available for sale that are in an unrealized loss position, the Corporation first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through the income statement. For investment securities available for sale that do not meet the aforementioned criteria, the Corporation evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Corporation considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Unrealized losses that have not been recorded through an allowance for credit losses is recognized in other comprehensive income. Adjustments to the allowance are reported in the income statement as a component of the provision for credit loss. The Corporation has made the accounting policy election to exclude accrued interest receivable on investment securities available for sale from the estimate of credit losses. Investment securities available for sale are charged off against the allowance or, in the absence of any allowance, written down through the income statement when deemed uncollectible or when either of the aforementioned criteria regarding intent or requirement to sell is met. The Corporation did not record an allowance for credit losses on its investment securities available for sale as the unrealized losses were attributable to changes in interest rates, not credit quality.

The allowance for credit losses on investment securities held to maturity is a contra asset-valuation account that is deducted from the amortized cost basis of investment securities held to maturity to present the net amount expected to be collected. Investment securities held to maturity are charged off against the allowance when deemed uncollectible. Adjustments to the allowance are reported in the income statement as a component of the provision for credit loss. The Corporation measures expected credit losses on investment securities held to maturity on a collective basis by major security type with each type sharing similar risk characteristics, and considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Corporation has made the accounting policy election to exclude accrued interest receivable on investment securities held to maturity from the estimate of credit losses. With regard to U.S. Government-sponsored agency and mortgage-backed securities, all these securities are issued by a U.S. government-sponsored entity and have an implicit or explicit government guarantee; therefore, no allowance for credit losses has been recorded for these securities. With regard to securities issued by states and municipalities and other investment securities held to maturity, management considers (1) issuer bond ratings, (2) historical loss rates for given bond ratings, (3) the financial condition of the issuer, and (4) whether issuers continue to make timely principal and interest payments under the contractual terms of the securities. Historical loss rates associated with securities having similar grades as those in the Corporation's portfolio have been insignificant. Furthermore, as of December 31, 2021, there were no past due principal and interest payments associated with these securities. An allowance for credit losses of $245,000 was recorded on the state and municipal securities classified as held to maturity based on applying the long-term historical credit loss rate, as published by Moody’s, for similarly rated securities.

On a quarterly basis, the Corporation monitors the credit quality of investment securities held to maturity through the use of credit ratings. The following table summarizes the amortized cost of investment securities held to maturity at December 31, 2021, aggregated by credit quality.


	Held to Maturity
	State and municipal		Other		Total
Credit Rating:
Aaa	$	90,290	$	60,579	$	150,869
Aa1	152,666		—		152,666
Aa2	175,755		—		175,755
Aa3	130,640		—		130,640
A1	88,281		—		88,281
A2	27,364		—		27,364
A3	10,108		—		10,108
Baa2	265		—		265
Non-rated	381,932		1,062,167		1,444,099
Total	$	1,057,301	$	1,122,746	$	2,180,047

The following table details activity in the allowance for credit losses on investment securities held to maturity during the twelve months ended December 31, 2021.


	State and municipal
Allowance for Credit Losses:
Balance, December 31, 2020	$	—
Impact of adopting ASC 326	245
Provision for credit loss	—
Securities charged off	—
Recoveries on securities	—
Balance, December 31, 2021	$	245

The following tables summarize, as of December 31, 2021 and December 31, 2020, investment securities available for sale in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by security type and length of time in a continuous unrealized loss position.


	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Investment securities available for sale at December 31, 2021
U.S. Treasury	$	999	$	1	$	—	$	—	$	999	$	1
U.S. Government-sponsored agency securities	68,524		1,545		—		—		68,524		1,545
State and municipal	138,187		894		505		4		138,692		898
U.S. Government-sponsored mortgage-backed securities	427,687		10,791		8,324		397		436,011		11,188
Corporate obligations	992		8		—		—		992		8
Total investment securities available for sale	$	636,389	$	13,239	$	8,829	$	401	$	645,218	$	13,640


	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Investment securities available for sale at December 31, 2020

State and municipal	$	5,368	$	246	$	—	$	—	$	5,368	$	246
U.S. Government-sponsored mortgage-backed securities	9,651		103		—		—		9,651		103

Total investment securities available for sale	$	15,019	$	349	$	—	$	—	$	15,019	$	349

The following table summarizes investment securities available for sale in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by security type and the number of securities in the portfolio in an unrealized loss position for the periods indicated.


	Gross Unrealized Losses		Number of Securities
Investment securities available for sale at December 31, 2021
U.S. Treasury	$	1	1
U.S. Government-sponsored agency securities	1,545		8
State and municipal	898		103
U.S. Government-sponsored mortgage-backed securities	11,188		48
Corporate obligations	8		1
Total investment securities available for sale	13,640		161


	Gross Unrealized Losses		Number of Securities
Investment securities available for sale at December 31, 2020


State and municipal	$	246	4
U.S. Government-sponsored mortgage-backed securities	$	103	5

Total investment securities available for sale	$	349	9

The unrealized losses in the Corporation’s investment portfolio were the result of changes in interest rates and not credit quality. As a result, the Corporation expects to recover the amortized cost basis over the term of the securities. The Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be maturity.

Certain investment securities available for sale are reported in the financial statements at an amount less than their historical cost as indicated in the table below.


	December 31, 2021			December 31, 2020
Investments available for sale reported at less than historical cost:
Historical cost	$	658,858		$	15,368
Fair value	645,218			15,019
Gross unrealized losses	$	13,640		$	349
Percent of the Corporation's investments available for sale	27.5		%	0.8		%

In determining the fair value of the investment securities portfolio, the Corporation utilizes a third party for portfolio accounting services, including market value input, for those securities classified as Level 1 and Level 2 in the fair value hierarchy. The Corporation has obtained an understanding of what inputs are being used by the vendor in pricing the portfolio and how the vendor classified these securities based upon these inputs. From these discussions, the Corporation’s management is comfortable that the classifications are proper. The Corporation has gained trust in the data for two reasons: (a) independent spot testing of the data is conducted by the Corporation through obtaining market quotes from various brokers on a periodic basis; and (b) actual gains or loss resulting from the sale of certain securities has proven the data to be accurate over time. Fair value of securities classified as Level 3 in the valuation hierarchy was determined using a discounted cash flow model that incorporated market estimates of interest rates and volatility in markets that have not been active.

The amortized cost and fair value of investment securities available for sale and held to maturity at December 31, 2021 and December 31, 2020, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity are shown separately.


	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturity Distribution at December 31, 2021
Due in one year or less	$	6,954	$	6,965	$	6,971	$	6,995
Due after one through five years	5,097		5,309		30,272		31,946
Due after five through ten years	120,460		126,816		177,203		180,129
Due after ten years	1,464,460		1,537,856		1,215,812		1,231,568
	1,596,971		1,676,946		1,430,258		1,450,638
U.S. Government-sponsored mortgage-backed securities	671,684		667,605		749,789		751,865


Total Investment Securities	$	2,268,655	$	2,344,551	$	2,180,047	$	2,202,503

Securities with a carrying value of approximately $873.2 million and $890.0 million were pledged at December 31, 2021 and 2020, respectively, to secure certain deposits and securities sold under repurchase agreements, and for other purposes as permitted or required by law. In order to facilitate the funding of PPP loans, the Bank pledged securities to the Discount Window at the Federal Reserve Bank resulting in an increase in pledged securities as of December 31, 2020 compared to December 31, 2019. Those securities remain pledged at the Federal Reserve Bank in 2021 as an alternative funding source.

The book value of securities sold under agreements to repurchase amounted to $175.1 million at December 31, 2021 and $167.3 million at

December 31, 2020.

Gross gains and losses on the sales and redemptions of available for sale securities for the years indicated are shown below.


	2021		2020		2019
Sales and Redemptions of Available for Sale Securities:
Gross gains	$	6,502	$	12,097	$	4,415
Gross losses	828		202		—

Loans and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Loans and Allowance for Credit Losses

LOANS AND ALLOWANCE FOR CREDIT LOSSES

The Corporation's primary lending focus is small business and middle market commercial, commercial real estate, public finance and residential real estate, which results in portfolio diversification. The following tables show the composition of the loan portfolio and credit quality characteristics by collateral classification, excluding loans held for sale. Loans held for sale at December 31, 2021 and December 31, 2020, were $11.2 million and $4.0 million, respectively.

The following table illustrates the composition of the Corporation’s loan portfolio by loan class for the periods indicated:


	December 31, 2021		December 31, 2020

Commercial and industrial loans	$	2,714,565	$	2,776,699
Agricultural land, production and other loans to farmers	246,442		281,884
Real estate loans:
Construction	523,066		484,723
Commercial real estate, non-owner occupied	2,135,459		2,220,949
Commercial real estate, owner occupied	986,720		958,501
Residential	1,159,127		1,234,741
Home equity	523,754		508,259
Individuals' loans for household and other personal expenditures	146,092		129,479
Public finance and other commercial loans	806,636		647,939
Loans	$	9,241,861	$	9,243,174

As of December 31, 2021, the Corporation had $106.6 million of Paycheck Protection Program ("PPP") loans compared to the December 31, 2020 balance of $667.1 million. PPP loans are included in the commercial and industrial loan class. Additional details of the PPP are included in

the "IMPACT OF COVID-19" section of NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES of these Notes to Consolidated Financial Statements.

Credit Quality

As part of the ongoing monitoring of the credit quality of the Corporation's loan portfolio, management tracks certain credit quality indicators including trends related to: (i) the level of criticized commercial loans, (ii) net charge-offs, (iii) non-performing loans, (iv) covenant failures and (v) the general national and local economic conditions.

The Corporation utilizes a risk grading of pass, special mention, substandard, doubtful and loss to assess the overall credit quality of large commercial loans. All large commercial credit grades are reviewed at a minimum of once a year for pass grade loans. Loans with grades below pass are reviewed more frequently depending on the grade. A description of the general characteristics of these grades is as follows:

•Pass - Loans that are considered to be of acceptable credit quality.

•Special Mention - Loans which possess some credit deficiency or potential weakness, which deserves close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Corporation's credit position at some future date. Special mention assets are not adversely classified and do not expose the Corporation to sufficient risk to warrant adverse classification.

•Substandard - A substandard loan is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected.

•Doubtful - Loans that have all of the weaknesses of those classified as Substandard. However, based on currently existing facts, conditions and values, these weaknesses make full collection of principal highly questionable and improbable.

•Loss – Loans that are considered uncollectible and of such little value that continuing to carry them as an asset is not warranted. Loans will be classified as Loss when it is neither practical or desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future.

The following tables summarize the risk grading of the Corporation’s loan portfolio by loan class and by year of origination for the years indicated. Consumer loans are not risk graded. For the purposes of this disclosure, the consumer loans are classified in the following manner: loans that are less than 30 days past due are Pass, loans 30-89 days past due are Special Mention and loans greater than 89 days past due are Substandard. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Loans that evidenced deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected are included in the applicable categories below. Commercial and industrial loan balances as of December 31, 2021 with an origination year of 2021 and 2020 include PPP loans of $100.3 million and $6.3 million, respectively.


	Term Loans (amortized cost basis by origination year)
	2021		2020		2019		2018		2017		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Commercial and industrial loans
Pass	$	1,019,757	$	362,372	$	144,520	$	65,165	$	21,575	$	30,420	$	990,335	$	—	$	2,634,144
Special Mention	10,559		11,088		190		730		1,930		1,825		15,026		—		41,348
Substandard	2,811		2,127		7,432		2,932		431		747		22,593		—		39,073


Total Commercial and industrial loans	1,033,127		375,587		152,142		68,827		23,936		32,992		1,027,954		—		2,714,565
Agricultural land, production and other loans to farmers
Pass	50,251		45,164		22,195		7,689		6,153		36,074		74,871		—		242,397
Special Mention	—		1,543		—		—		—		252		264		—		2,059
Substandard	524		506		108		371		—		27		450		—		1,986


Total Agricultural land, production and other loans to farmers	50,775		47,213		22,303		8,060		6,153		36,353		75,585		—		246,442
Real estate loans:
Construction
Pass	215,167		200,169		63,589		979		1,762		2,453		17,201		—		501,320
Special Mention	20,737		270		—		—		—		46		—		—		21,053
Substandard	—		693		—		—		—		—		—		—		693


Total Construction	235,904		201,132		63,589		979		1,762		2,499		17,201		—		523,066
Commercial real estate, non-owner occupied
Pass	589,296		688,406		227,332		111,971		103,400		126,837		26,779		—		1,874,021
Special Mention	68,279		149,480		—		—		—		1,723		—		—		219,482
Substandard	19,314		14,912		178		1,118		6,156		278		—		—		41,956


Total Commercial real estate, non-owner occupied	676,889		852,798		227,510		113,089		109,556		128,838		26,779		—		2,135,459
Commercial real estate, owner occupied
Pass	299,186		392,383		92,338		43,252		46,044		48,571		33,998		—		955,772
Special Mention	5,665		5,953		738		1,532		902		1,301		149		—		16,240
Substandard	7,025		5,763		—		53		113		1,754		—		—		14,708


Total Commercial real estate, owner occupied	311,876		404,099		93,076		44,837		47,059		51,626		34,147		—		986,720
Residential
Pass	349,726		353,691		103,028		69,745		55,240		210,669		2,955		73		1,145,127
Special Mention	1,034		1,394		1,456		306		172		2,106		—		—		6,468
Substandard	1,004		1,575		335		1,248		108		3,257		—		5		7,532


Total Residential	351,764		356,660		104,819		71,299		55,520		216,032		2,955		78		1,159,127
Home equity
Pass	63,845		17,556		1,977		2,127		1,250		3,432		427,437		194		517,818
Special Mention	—		85		48		—		—		24		3,451		—		3,608
Substandard	520		—		—		8		91		70		1,639		—		2,328


Total Home Equity	64,365		17,641		2,025		2,135		1,341		3,526		432,527		194		523,754
Individuals' loans for household and other personal expenditures
Pass	67,749		23,452		11,893		11,197		2,008		4,928		24,406		—		145,633
Special Mention	79		85		50		33		20		58		134		—		459
Substandard	—		—		—		—		—		—		—		—		—


Total Individuals' loans for household and other personal expenditures	67,828		23,537		11,943		11,230		2,028		4,986		24,540		—		146,092
Public finance and other commercial loans
Pass	231,319		178,316		100,679		39,098		105,964		128,942		22,318		—		806,636




Total Public finance and other commercial loans	231,319		178,316		100,679		39,098		105,964		128,942		22,318		—		806,636
Loans	$	3,023,847	$	2,456,983	$	778,086	$	359,554	$	353,319	$	605,794	$	1,664,006	$	272	$	9,241,861


	December 31, 2020
	Commercial Pass		Commercial Special Mention		Commercial Substandard		Commercial Doubtful		Commercial Loss		Consumer Performing		Consumer Non-Performing		Total
Commercial and industrial loans	$	2,562,077	$	117,503	$	97,119	$	—	$	—	$	—	$	—	$	2,776,699
Agricultural land, production and other loans to farmers	243,991		26,835		9,885		—		—		1,173		—		281,884
Real estate loans:
Construction	446,846		10,445		5,549		—		—		21,763		120		484,723
Commercial real estate, non-owner occupied	1,979,827		160,304		80,818		—		—		—		—		2,220,949
Commercial real estate, owner occupied	907,566		17,641		33,294		—		—		—		—		958,501
Residential	199,338		2,261		7,058		—		—		1,020,687		5,397		1,234,741
Home equity	12,714		—		989		—		—		492,999		1,557		508,259
Individuals' loans for household and other personal expenditures	—		—		—		—		—		129,440		39		129,479

Public finance and other commercial loans	647,939		—		—		—		—		—		—		647,939
Loans	$	7,000,298	$	334,989	$	234,712	$	—	$	—	$	1,666,062	$	7,113	$	9,243,174

Total past due loans equaled $34.7 million as of December 31, 2021, a $38.0 million decrease from the total of $72.8 million for December 31, 2020. At December 31, 2021, 30-59 Days Past Due loans totaled $15.0 million, a decrease of $4.6 million from December 31, 2020. The primary decreases were in commercial and industrial and owner-occupied commercial real estate loans. At December 31, 2021, 60-89 Days Past Due loans totaled $7.1 million, a decrease of $4.1 million from December 31, 2020. The primary decrease was in commercial and industrial loans and non-owner occupied commercial real estate, offset by an increase in the residential portfolio. At December 31, 2021, 90 Days or More Past Due loans totaled $12.7 million, a decrease of $29.3 million from December 31, 2020. The primary decrease was in non-owner occupied commercial real estate, due to the payoff of a $23.4 million relationship. The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, for the years indicated:


	December 31, 2021
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total		Loans > 90 Days or More Past Due And Accruing
Commercial and industrial loans	$	2,708,539	$	2,602	$	2,437	$	987	$	2,714,565	$	675
Agricultural land, production and other loans to farmers	246,380		36		—		26		246,442		—
Real estate loans:
Construction	522,349		717		—		—		523,066		—
Commercial real estate, non-owner occupied	2,124,853		3,327		—		7,279		2,135,459		—
Commercial real estate, owner occupied	985,785		643		—		292		986,720		—
Residential	1,148,294		3,979		4,255		2,599		1,159,127		—
Home equity	518,643		3,327		281		1,503		523,754		288
Individuals' loans for household and other personal expenditures	145,634		375		83		—		146,092		—

Public finance and other commercial loans	806,636		—		—		—		806,636		—
Loans	$	9,207,113	$	15,006	$	7,056	$	12,686	$	9,241,861	$	963


	December 31, 2020
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total		Loans > 90 Days or More Past Due And Accruing
Commercial and industrial loans	$	2,761,473	$	5,866	$	6,571	$	2,789	$	2,776,699	$	594
Agricultural land, production and other loans to farmers	280,615		146		226		897		281,884		—
Real estate loans:
Construction	484,706		—		17		—		484,723		—
Commercial real estate, non-owner occupied	2,184,681		2,525		2,109		31,634		2,220,949		—
Commercial real estate, owner occupied	951,561		4,854		180		1,906		958,501		—
Residential	1,226,779		3,269		1,429		3,264		1,234,741		133
Home equity	503,596		2,644		559		1,460		508,259		19
Individuals' loans for household and other personal expenditures	129,049		334		96		—		129,479		—

Public finance and other commercial loans	647,939		—		—		—		647,939		—
Loans	$	9,170,399	$	19,638	$	11,187	$	41,950	$	9,243,174	$	746

Loans are reclassified to a non-accruing status when, in management’s judgment, the collateral value and financial condition of the borrower do not justify accruing interest. At the time the accrual is discontinued, all unpaid accrued interest is reversed against earnings. Interest income accrued in the prior year, if any, is charged to the allowance for credit losses. Payments subsequently received on non-accrual loans are applied to principal. A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable, typically after a minimum of six consecutive months of performance.

The following table summarizes the Corporation’s non-accrual loans by loan class for the periods indicated:


	December 31, 2021				December 31, 2020
	Non-Accrual Loans		Non-Accrual Loans with no Allowance for Credit Losses		Non-Accrual Loans
Commercial and industrial loans	$	7,598	$	263	$	2,329
Agricultural land, production and other loans to farmers	631		524		1,012
Real estate loans:
Construction	685		—		123
Commercial real estate, non-owner occupied	23,029		6,133		46,316
Commercial real estate, owner occupied	411		—		3,040
Residential	9,153		2,160		6,517
Home equity	1,552		—		2,095
Individuals' loans for household and other personal expenditures	3		—		39

Loans	$	43,062	$	9,080	$	61,471

There was no interest income recognized on non-accrual loans for the twelve months ended December 31, 2021 and 2020, respectively.

Determining fair value for collateral dependent loans requires obtaining a current independent appraisal of the collateral and applying a discount factor, which includes selling costs if applicable, to the value. The fair value of real estate is generally based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions.

The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses:


	December 31, 2021
	Commercial Real Estate		Residential Real Estate		Other		Total		Allowance on Collateral Dependent Loans
Commercial and industrial loans	$	—	$	—	$	8,075	$	8,075	$	2,672
Agricultural land, production and other loans to farmers	524		—		251		775		—
Real estate loans:
Construction	—		685		—		685		82
Commercial real estate, non-owner occupied	23,652		—		—		23,652		5,510
Commercial real estate, owner occupied	1,044		—		—		1,044		—
Residential	—		4,906		—		4,906		305
Home equity	—		394		—		394		64


Loans	$	25,220	$	5,985	$	8,326	$	39,531	$	8,633

As detailed in NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES of these Notes to Consolidated Financial Statements, the Bank's banking regulators issued guidance in March 2020 encouraging financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of COVID-19. Additionally, Section 4013 of the CARES Act had further provided that a qualified loan modification is exempt by law from classification as a troubled debt restructure as defined by GAAP, from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak under the National Emergencies Act (50 U.S.C. 1601 et seq.) terminates. In accordance with that guidance, the Bank has offered short-term modifications made in response to COVID-19 to borrowers who were current and otherwise not past due. These included short-term, 180 days or less, modifications in the form of payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. The 2021 CAA extended the expiration date for COVID-related loan modifications exempt from troubled debt restructuring classification until January 1, 2022. At December 31, 2021, the Corporation did not have any outstanding COVID modifications, compared to $120.3 million on 87 loans at December 31, 2020.

In certain loan restructuring situations, the Corporation may grant a concession to a debtor experiencing financial difficulty, resulting in a troubled debt restructuring. A concession is deemed to be granted when, as a result of the restructuring, the Corporation does not expect to collect all original amounts due, including interest accrued at the original contract rate. If the payment of principal at original maturity is primarily dependent on the value of collateral, the current value of the collateral is considered in determining whether the principal will be repaid.

The following tables summarize troubled debt restructures in the Corporation's loan portfolio that occurred during the twelve months ended December 31, 2021 and 2020, respectively.


	Twelve Months Ended December 31, 2021
	Pre- Modification Recorded Balance		Term Modification		Rate Modification		Combination		Post - Modification Recorded Balance		Number of Loans
Commercial and industrial loans	$	348	$	348	$	—	$	—	$	348	2
Real estate loans:
Construction	16		—		16		—		16		1
Commercial real estate, non owner occupied	12,922		12,976		—		—		12,976		1
Commercial real estate, owner occupied	51		29		—		21		50		2
Residential	691		449		126		118		693		9


Total	$	14,028	$	13,802	$	142	$	139	$	14,083	15



	Twelve Months Ended December 31, 2020
	Pre- Modification Recorded Balance		Term Modification		Rate Modification		Combination		Post - Modification Recorded Balance		Number of Loans
Commercial and industrial loans	$	654	$	654	$	—	$	—	$	654	3
Agricultural land, production and other loans to farmers	458		458		—		—		458		1
Real estate loans:
Construction	113		—		—		123		123		1

Commercial real estate, owner occupied	107		107		—		—		107		1
Residential	2,730		2,393		163		224		2,780		38
Home Equity	332		237		95		—		332		3
Individuals' loans for household and other personal expenditures	19		19		—		—		19		2
Total	$	4,413	$	3,868	$	258	$	347	$	4,473	49

Loans secured by commercial real estate, non-owner occupied made up 92.1 percent of the post-modification balances of the troubled debt restructured loans that occurred during the twelve months ending December 31, 2021. During the twelve months ended December 31, 2020, residential made up and 62.2 percent of the post-modification balance of the troubled debt restructured loans that occurred in the period.

The following tables summarize troubled debt restructures that occurred during the twelve months ended December 31, 2021 and 2020, that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this schedule, a loan is considered in default if it is 30-days or more past due.


	Twelve Months Ended December 31, 2021
	Number of Loans	Recorded Balance

Real estate loans:

Residential	5	$	475


Total	5	$	475


	Twelve Months Ended December 31, 2020
	Number of Loans	Recorded Balance
Commercial and industrial loans	2	$	585
Real estate loans:

Residential	8	610
Home equity	1	93

Total	11	$	1,288

Commercial troubled debt restructured loans risk graded special mention, substandard, doubtful and loss are individually evaluated for apparent loss and may result in a specific reserve allocation in the allowance for credit loss. Commercial troubled debt restructures that aren't individually evaluated for a specific reserve are included in the calculation of allowance for credit losses through the loan segment loss analysis.

For all consumer loan modifications, an evaluation to identify if a troubled debt restructure has occurred is performed prior to making the modification. Any subsequent deterioration is addressed through the charge-off process or through a specific reserve allocation included in the allowance for credit loss. Consumer troubled debt restructures that are not individually evaluated for a specific reserve are included in the calculation of the allowance for credit losses through the loan segment loss analysis. Consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $4.2 million and $2.8 million at December 31, 2021 and December 31, 2020, respectively.

Allowance for Credit Losses on Loans

The Allowance for Credit Losses on Loans ("ACL - Loans") is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on loans over the contractual term. The ACL - Loans is adjusted by the provision for credit losses, which is reported in earnings, and reduced by charge offs for loans, net or recoveries. Provision for credit losses on loans reflects the totality of actions taken on all loans for a particular period including any necessary increases or decreases in the allowance related to changes in credit loss expectations associated with specific loans or pools of loans. Loans are charged off against the allowance when the uncollectibility of the loan is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off.

The allowance represents the Corporation’s best estimate of current expected credit losses on loans using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. The current expected credit loss ("CECL") calculation is performed and evaluated quarterly and losses are estimated over the expected life of the loan. The level of the allowance for credit losses is believed to be adequate to absorb all expected future losses inherent in the loan portfolio at the measurement date.

In calculating the allowance for credit losses, the loan portfolio was pooled into ten loan segments with similar risk characteristics. Common characteristics include the type or purpose of the loan, underlying collateral and historical/expected credit loss patterns. In developing the loan segments, the Corporation analyzed the degree of correlation in how loans within each portfolio respond when subjected to varying economic conditions and scenarios as well as other portfolio stress factors.

The expected credit losses are measured over the life of each loan segment utilizing the Probability of Default / Loss Given Default methodology combined with economic forecast models to estimate the current expected credit loss inherent in the loan portfolio. This approach is also leveraged to estimate the expected credit losses associated with unfunded loan commitments incorporating expected utilization rates.

The Corporation sub-segmented certain commercial portfolios by risk level and certain consumer portfolios by delinquency status where appropriate. The Corporation utilized a four-quarter reasonable and supportable economic forecast period followed by a six-quarter, straight-line reversion period to the historical macroeconomic mean for the remaining life of the loans. Econometric modeling was performed using historical default rates and a selection of economic forecast scenarios published by Moody’s to develop a range of estimated credit losses for which to determine the best credit loss estimate within. Macroeconomic factors utilized in the modeling process include the national unemployment rate, BBB US corporate index, CRE price index and the home price index.

The Corporation qualitatively adjusts model results for risk factors that are not inherently considered in the quantitative modeling process, but are nonetheless relevant in assessing the expected credit losses within the loan portfolio. These adjustments may increase or decrease the estimate of expected credit losses based upon the assessed level of risk for each qualitative factor. The various risks that may be considered in making qualitative adjustments include, among other things, the impact of (i) changes in the nature and volume of the loan portfolio, (ii) changes in the existence, growth and effect of any concentrations in credit, (iii) changes in lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries, (iv) changes in the quality of the credit review function, (v) changes in the experience, ability and depth of lending management and staff, and (vi) other environmental factors such as regulatory, legal and technological considerations, as well as competition.

In some cases, management may determine that an individual loan exhibits unique risk characteristics which differentiate the loan from other loans within the loan segments. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific reserve allocations of the allowance for credit losses are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other things. A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In such cases, expected credit losses are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. The fair value of collateral supporting collateral dependent loans is evaluated on a quarterly basis.

No allowance for credit losses has been recognized for PPP loans as such loans are fully guaranteed by the Small Business Administration ("SBA").

The risk characteristics of the Corporation’s portfolio segments are as follows:

Commercial

Commercial lending is primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the tangible assets being financed such as equipment or real estate or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. Other loans may be unsecured, secured but under-collateralized or otherwise made on the basis of the enterprise value of an organization. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.

Commercial real estate

Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. The Corporation monitors commercial real estate loans based on collateral and risk grade criteria, as well as the levels of owner-occupied versus non-owner occupied loans.

Construction

Construction loans are underwritten utilizing a combination of tools and techniques including feasibility and market studies, independent appraisals and appraisal reviews, absorption and interest rate sensitivity analysis as well as the financial analysis of the developer and all guarantors. Construction loans are monitored by either in house or third party inspectors limiting advances to a percentage of costs or stabilized project value. These loans frequently involve the disbursement of significant funds with the repayment dependent upon the successful completion and, where necessary, the future stabilization of the project. The predominant inherent risk of this portfolio is associated with the borrower's ability to successfully complete a project on time, within budget and stabilize the projected as originally projected.

Consumer and Residential

With respect to residential loans that are secured by 1-4 family residences, which are typically owner occupied, the Corporation generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans, such as small installment loans and certain lines of credit, are unsecured. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can also be impacted by changes in property values. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

The following tables summarize changes in the allowance for credit losses by loan segment for the twelve months ended December 31, 2021:


	Twelve Months Ended December 31, 2021
	Commercial		Commercial Real Estate		Construction		Consumer		Residential		Consumer & Residential		Total
Allowance for credit losses
Balances, December 31, 2020	$	47,115	$	51,070	$	—	$	9,648	$	22,815	$	—	$	130,648
Credit risk reclassifications	—		(10,284)		10,284		(9,648)		(22,815)		32,463		—
Balances, December 31, 2020 after reclassifications	47,115		40,786		10,284		—		—		32,463		130,648
Impact of adopting ASC 326	20,024		34,925		8,805		—		—		10,301		74,055
Balances, January 1, 2021 Post-ASC 326 adoption	67,139		75,711		19,089		—		—		42,764		204,703
Provision for credit losses	7,921		(11,093)		1,122		—		—		2,050		—

Recoveries on loans	724		580		1		—		—		1,273		2,578
Loans charged off	(5,849)		(4,533)		(6)		—		—		(1,496)		(11,884)
Balances, December 31, 2021	$	69,935	$	60,665	$	20,206	$	—	$	—	$	44,591	$	195,397

Allowance for Loan Losses under prior GAAP ("Incurred Loss Model")

Prior to the adoption of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments on January 1, 2021, the Corporation maintained an allowance for loan losses in accordance with the incurred loss model as disclosed in the Corporation's 2020 Annual Report on Form 10-K.

The following tables summarize changes in the allowance for loan losses by loan segment for the twelve months ended December 31, 2020 and 2019:


	Twelve Months Ended December 31, 2020
	Commercial		Commercial Real Estate		Consumer		Residential		Total
Allowance for loan losses:
Balances, December 31, 2019	$	32,902	$	28,778	$	4,035	$	14,569	$	80,284
Provision for losses	21,930		22,174		5,996		8,573		58,673
Recoveries on loans	819		431		260		666		2,176
Loans charged off	(8,536)		(313)		(643)		(993)		(10,485)
Balances, December 31, 2020	$	47,115	$	51,070	$	9,648	$	22,815	$	130,648


	Twelve Months Ended December 31, 2019
	Commercial		Commercial Real Estate		Consumer		Residential		Total
Allowance for loan losses:
Balances, December 31, 2018	$	32,657	$	29,609	$	3,964	$	14,322	$	80,552
Provision for losses	733		1,555		239		273		2,800
Recoveries on loans	1,244		1,289		401		619		3,553
Loans charged off	(1,732)		(3,675)		(569)		(645)		(6,621)
Balances, December 31, 2019	$	32,902	$	28,778	$	4,035	$	14,569	$	80,284

The table below shows the Corporation’s allowance for loan losses under the incurred loss model and loan portfolio by loan segment as of December 31, 2020.


	December 31, 2020
	Commercial		Commercial Real Estate		Consumer		Residential		Total
Allowance Balances:
Individually evaluated for impairment	$	223	$	12,246	$	—	$	432	$	12,901
Collectively evaluated for impairment	46,892		38,824		9,648		22,383		117,747

Total Allowance for Loan Losses	$	47,115	$	51,070	$	9,648	$	22,815	$	130,648
Loan Balances:
Individually evaluated for impairment	$	1,258	$	51,605	$	2	$	3,291	$	56,156
Collectively evaluated for impairment	3,505,863		3,805,808		129,477		1,739,709		9,180,857
Loans acquired with deteriorated credit quality	577		5,584		—		—		6,161
Loans	$	3,507,698	$	3,862,997	$	129,479	$	1,743,000	$	9,243,174

The following tables show the composition of the Corporation’s impaired loans and related allowance by loan class under the incurred loss model and the interest income recognized for the periods indicated:


	December 31, 2020
	Unpaid Principal Balance		Recorded Investment		Related Allowance
Impaired loans with no related allowance:
Commercial and industrial loans	$	1,059	$	991	$	—

Real estate Loans:
Commercial real estate, non-owner occupied	4,958		4,694		—
Commercial real estate, owner occupied	2,125		1,310		—
Residential	957		816		—

Individuals' loans for household and other personal expenditures	2		2		—

Total	$	9,101	$	7,813	$	—
Impaired loans with related allowance:
Commercial and industrial loans	$	268	$	268	$	223
Agricultural land, production and other loans to farmers	640		562		3
Real estate Loans:
Commercial real estate, non-owner occupied	44,016		43,715		11,686
Commercial real estate, owner occupied	2,061		1,323		557
Residential	2,041		2,014		352
Home equity	487		461		80


Total	$	49,513	$	48,343	$	12,901
Total Impaired Loans	$	58,614	$	56,156	$	12,901


	December 31, 2019
	Unpaid Principal Balance		Recorded Investment		Related Allowance
Impaired loans with no related allowance:
Commercial and industrial loans	$	320	$	320	$	—
Agricultural land, production and other loans to farmers	752		381		—
Real estate loans:
Construction	1,206		970		—
Commercial real estate, non-owner occupied	6,202		5,299		—
Commercial real estate, owner occupied	1,382		306		—
Residential	93		76		—




Total	$	9,955	$	7,352	$	—
Impaired loans with related allowance:

Agricultural land, production and other loans to farmers	588		585		107
Real estate loans:


Commercial real estate, owner occupied	2,060		1,324		124
Residential	2,070		2,044		383
Home equity	417		400		75
Individuals' loans for household and other personal expenditures	4		4		—


Total	$	5,139	$	4,357	$	689
Total Impaired Loans	$	15,094	$	11,709	$	689


	Twelve Months Ended December 31, 2020
	Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance:
Commercial and industrial loans	$	991	$	—

Real estate Loans:
Commercial real estate, non-owner occupied	4,850		145
Commercial real estate, owner occupied	1,429		—
Residential	840		3

Individuals' loans for household and other personal expenditures	3		—

Total	$	8,113	$	148
Impaired loans with related allowance:
Commercial and industrial loans	$	267	$	—
Agricultural land, production and other loans to farmers	589		—
Real estate Loans:
Commercial real estate, non-owner occupied	44,119		—
Commercial real estate, owner occupied	1,447		—
Residential	2,108		70
Home equity	473		14


Total	$	49,003	$	84
Total Impaired Loans	$	57,116	$	232


	Twelve Months Ended December 31, 2019
	Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance:
Commercial and industrial loans	$	320	$	—
Agricultural land, production and other loans to farmers	542		—
Real estate loans:
Construction	1,229		—
Commercial real estate, non-owner occupied	5,399		156
Commercial real estate, owner occupied	357		—
Residential	77		3




Total	$	7,924	$	159
Impaired loans with related allowance:

Agricultural land, production and other loans to farmers	585		—
Real estate loans:


Commercial real estate, owner occupied	1,324		—
Residential	2,083		63
Home equity	409		12
Individuals' loans for household and other personal expenditures	4		—


Total	$	4,405	$	75
Total Impaired Loans	$	12,329	$	234

Off-Balance Sheet Arrangements, Commitments And Contingencies

In the normal course of business, the Corporation has entered into off-balance sheet financial instruments which include commitments to extend credit and standby letters of credit. Commitments to extend credit are usually the result of lines of credit granted to existing borrowers under agreements that the total outstanding indebtedness will not exceed a specific amount during the term of the indebtedness. Typical borrowers are commercial concerns that use lines of credit to supplement their treasury management functions, and thus their total outstanding indebtedness may fluctuate during any time period based on the seasonality of their business and the resultant timing for their cash flows. Other typical lines of credit are related to home equity loans granted to customers. Commitments to extend credit generally have fixed expiration dates or other termination clauses that may require a fee.

Standby letters of credit are generally issued on behalf of an applicant (the Corporation’s customer) to a specifically named beneficiary and are the result of a particular business arrangement that exists between the applicant and the beneficiary. Standby letters of credit have fixed expiration dates and are usually for terms of two years or less unless terminated beforehand due to criteria specified in the standby letter of credit. The standby letter of credit would permit the beneficiary to obtain payment from the Corporation under certain prescribed circumstances. Subsequently, the Corporation would seek reimbursement from the applicant pursuant to the terms of the standby letter of credit.

The Corporation typically follows the same credit policies and underwriting practices when making these commitments as it does for on-balance sheet instruments. Each customer’s creditworthiness is typically evaluated on a case-by-case basis, and the amount of collateral obtained, if any, is based on management’s credit evaluation of the customer. Collateral held varies but may include cash, real estate, marketable securities, accounts receivable, inventory, equipment and personal property.

The contractual amounts of these commitments are not reflected in the consolidated financial statements and only amounts drawn upon would be reflected in the future. Since many of the commitments are expected to expire without being drawn upon, the contractual amounts do not necessarily represent future cash requirements. However, should the commitments be drawn upon and should the Corporation’s customers default on their resulting obligation to the Corporation, the maximum exposure to credit loss, without consideration of collateral, is represented by the contractual amount of those commitments.

Financial instruments with off-balance sheet risk were as follows:


	December 31, 2021		December 31, 2020
Amounts of commitments:
Loan commitments to extend credit	$	3,917,215	$	3,443,514
Standby letters of credit	$	34,613	$	29,555

The adoption of the CECL methodology for measuring credit losses, as discussed more fully in the Allowance for Credit Loss on Loans section of this Note, and in NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES of these Notes to Consolidated Financial Statements, increased the opening balance of our accrual for off-balance sheet commitments at adoption by $20.5 million. This reserve level remains appropriate and is reported in Other Liabilities as of December 31, 2021 in the CONSOLIDATED BALANCE SHEETS.

The following table details activity in the allowance for credit losses on off-balance sheet commitments:


	Twelve Months Ended December 31, 2021
Balances, January 1, 2021	$	20,500

Provision for credit losses	—
Balances, December 31, 2021	$	20,500

Premises and Equipment

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Premises and Equipment

PREMISES AND EQUIPMENT

The following table summarizes the Corporation's premises and equipment as of December 31, 2021 and 2020:


	2021		2020
Cost at December 31:
Land	$	22,349	$	25,619
Buildings and Leasehold Improvements	160,410		163,588
Equipment	129,885		127,341
Total Cost	312,644		316,548
Accumulated Depreciation and Amortization	(206,989)		(205,486)
Net	$	105,655	$	111,062

The Corporation is committed under various non-cancelable lease contracts for certain subsidiary office facilities and equipment. Details regarding the lease contracts are discussed in NOTE 9. LEASES of these Notes to Consolidated Financial Statements.

Goodwill

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

GOODWILL

Goodwill is recorded on the acquisition date of an entity. The Hoosier acquisition on April, 1, 2021 resulted in $1,467,000 of goodwill. Details regarding the Hoosier acquisition are discussed in NOTE 2. ACQUISITIONS of these Notes to Consolidated Financial Statements.

As of October 1, 2021, the Corporation performed its annual goodwill impairment testing and in the valuation, the fair value exceeded the Corporation's carrying value; therefore, it was concluded goodwill was not impaired.

As of October 1, 2020, the Corporation performed its annual goodwill impairment test which included various valuation considerations including comparable peer data, precedent transaction comparables, discounted cash flow analysis, overall financial performance, share price of the Corporation's common stock and other factors. The testing for 2020 resulted in a conclusion that it was not more likely than not that the fair value of the Corporation had declined below its carrying value and no impairment loss was recorded in 2020.

For additional details related to impairment testing, see the "GOODWILL" section of Management's Discussion and Analysis of Financial Condition and Results of Operations included as Item 7 of this Annual Report on Form 10-K.


	2021		2020
Balance, January 1	$	543,918	$	543,918
Goodwill acquired	1,467		—


Balance, December 31	$	545,385	$	543,918

Other Intangibles

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Other Intangibles

OTHER INTANGIBLES

Core deposit intangibles and other intangibles are recorded on the acquisition date of an entity. The Hoosier acquisition on April 1, 2021 resulted in a customer relationship intangible of $2,247,000. Details regarding the Hoosier acquisition are discussed in NOTE 2. ACQUISITIONS of these Notes to Consolidated Financial Statements.

The carrying basis and accumulated amortization of recognized core deposit and other intangibles are noted below.


	2021		2020
Gross carrying amount	$	102,396	$	102,396

Other intangibles acquired	2,247		—

Accumulated amortization	(79,168)		(73,421)

Total core deposit and other intangibles	$	25,475	$	28,975

The core deposit intangibles and other intangibles are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of two to ten years. Amortization expense for the years ended December 31, 2021, 2020 and 2019, was $5.7 million, $6.0 million and $6.0 million, respectively.

Estimated future amortization expense is summarized as follows:


	Amortization Expense
2022	$	5,402
2023	5,145
2024	4,510
2025	3,754
2026	2,948
After 2026	3,716
	$	25,475

Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

LEASES

The Corporation enters into leases for certain retail branches, office space, land and equipment. Operating leases are included in other assets and the lease liability is included in other liabilities in our balance sheets. The Corporation does not have any finance leases.

Right-of-use (ROU) assets represent the Corporation's right to use an underlying asset for the lease term and lease liabilities represent the Corporation's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Corporation uses its incremental borrowing rate at commencement date in determining the present value of lease payments when the rate implicit in a lease is not known. The Corporation's incremental borrowing rate is based on the FHLB amortizing advance rate, adjusted for the lease term and other factors. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

The Corporation's leases are generally for periods of five to twenty years with various renewal options. The exercise of such lease renewal options is not included in the present value of lease obligations unless it is reasonably certain that the option will be exercised. The Corporation has lease agreements which contain both lease and non-lease components such as common area maintenance charges, real estate taxes, and insurance. Non-lease components are not included in the measurement of the lease liability and are recognized in expense when incurred. The Corporation has elected not to recognize short-term leases, with original lease terms of twelve months or less, on the Corporation's balance sheet. Certain of the Corporation's lease agreements include rental payments adjusted periodically for inflation. The Corporation's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Supplemental balance sheet information related to leases is presented in the table below as of December 31, 2021 and 2020:


	2021			2020
Operating lease assets	$	17,818		$	18,247
Total lease assets	$	17,818		$	18,247

Operating lease liabilities	$	19,619		$	20,058
Total lease liabilities	$	19,619		$	20,058

Weighted average remaining lease term (years)
Operating leases	7.0			8.0
Weighted average discount rate
Operating leases	3.1		%	3.3		%

The table below presents the components of lease expense for the years ended December 31, 2021, 2020, and 2019:


	2021		2020		2019
Lease Cost:
Operating lease cost	$	3,710	$	3,724	$	3,617
Short-term lease cost	345		247		204
Variable lease cost	980		842		948
Sublease income	$	(33)	$	(43)	$	(13)
Total lease cost	$	5,002	$	4,770	$	4,756

Supplemental cash flow information related to leases is presented in the tables below.


Maturity of lease liabilities	Operating Leases
2022	$	3,954
2023	3,569
2024	3,464
2025	3,217
2026	1,945
2027 and after	5,913
Total lease payments	$	22,062
Less: Present value discount	2,443
Present value of lease liabilities	$	19,619


Other Information	Twelve Months Ended December 31, 2021		Twelve Months Ended December 31, 2020		Twelve Months Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	3,773	$	3,629	$	3,422
ROU assets obtained in exchange for new operating lease liabilities	$	2,700	$	1,601	$	23,529

Deposits

12 Months Ended

Dec. 31, 2021

Statistical Disclosure for Banks [Abstract]

Deposits

DEPOSITS

The composition of the deposit portfolio is included in the table below for the years indicated:


	December 31, 2021		December 31, 2020
Demand deposits	$	7,704,190	$	6,821,152
Savings deposits	4,334,802		3,661,713
Certificates and other time deposits of $100,000 or more	273,379		346,194
Other certificates and time deposits	389,752		459,168
Brokered deposits	30,454		73,383
Total deposits	$	12,732,577	$	11,361,610

At December 31, 2021 and 2020, deposits exceeding the FDIC's Standard Maximum Deposit Insurance Amount of $250,000 were $7.6 billion and $6.4 billion, respectively. The Corporation experienced increases from December 31, 2020 in demand and savings accounts of $883.0 million and $673.1 million, respectively. A portion of the increase is due to PPP loans that have remained on deposit, in addition to consumer Economic Impact Payments from the IRS that have also remained on deposit. Offsetting these increases were decreases in certificates of deposit and brokered deposits of $142.2 million and $42.9 million, respectively, from December 31, 2020. The low interest rate environment has resulted in customers migrating funds from maturing time deposit products into non-maturity products due to similar rates offered for both products.

At December 31, 2021, the contractual maturities of time deposits are summarized as follows:


	Certificates and Other Time Deposits
2022	$	548,203
2023	108,558
2024	15,506
2025	10,394
2026	9,662
After 2026	1,262
	$	693,585

Borrowings

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Borrowings

BORROWINGS

The following table summarizes the Corporation's borrowings as of December 31, 2021 and 2020:


	December 31, 2021		December 31, 2020

Securities sold under repurchase agreements	$	181,577	$	177,102
Federal Home Loan Bank advances	334,055		389,430
Subordinated debentures and term loans	118,618		118,380
Total Borrowings	$	634,250	$	684,912

Securities sold under repurchase agreements consist of obligations of the Bank to other parties and are secured by U.S. Government-Sponsored Enterprise obligations. The maximum amount of outstanding agreements at any month-end during 2021 and 2020 totaled $199.1 million and $197.9 million, respectively, and the average of such agreements totaled $173.8 million and $180.7 million during 2021 and 2020, respectively.

Transfers Accounted For As Secured Borrowings

The collateral pledged for all repurchase agreements that are accounted for as secured borrowings as of December 31, 2021 and 2020 were:


	December 31, 2021
	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater Than 90 Days		Total
U.S. Government-sponsored mortgage-backed securities	$	181,577	$	—	$	—	$	—	$	181,577


	December 31, 2020
	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater Than 90 Days		Total
U.S. Government-sponsored mortgage-backed securities	$	175,449	$	—	$	1,653	$	—	$	177,102

Contractual maturities of borrowings as of December 31, 2021, are as follows:


Maturities in Years Ending December 31:	Securities Sold Under Repurchase Agreements		Federal Home Loan Bank Advances		Subordinated Debentures and Term Loans
2022	$	181,577	$	75,097	$	—
2023	—		115,097		—
2024	—		10,097		—
2025	—		25,097		—
2026	—		97		—
After 2026	—		108,570		122,012
ASC 805 fair value adjustments at acquisition	—		—		(3,394)
	$	181,577	$	334,055	$	118,618

The terms of a security agreement with the FHLB require the Corporation to pledge, as collateral for advances, qualifying first mortgage loans, investment securities and multi-family loans in an amount equal to at least 145 percent of these advances depending on the type of collateral pledged. At December 31, 2021, the outstanding FHLB advances had interest rates from 0.35 to 2.62 percent and are subject to restrictions or penalties in the event of prepayment. The total available remaining borrowing capacity from the FHLB at December 31, 2021, was $728.5 million. As of December 31, 2021, the Corporation had $125.0 million of putable advances with the FHLB.

Subordinated Debentures and Term Loans. As of December 31, 2021 and 2020, subordinated debentures and term loans totaled $118.6 million and $118.4 million, respectively.

•First Merchants Capital Trust II ("FMC Trust II"). The subordinated debenture was entered into on July 2, 2007 for $56.7 million. On August 10, 2015, the Corporation completed the cancellation of $5 million of subordinated debentures at a gain of $1.3 million. Interest was fixed at 6.495 percent for the period from the date of issuance through September 15, 2012; interest is now an annual floating rate equal to the three-month LIBOR plus 1.56 percent, reset quarterly. Interest is payable in March, June, September and December of each year. The interest rate at December 31, 2021 and 2020 was 1.76 percent and 1.78 percent, respectively. The Corporation could not redeem the debenture prior to September 15, 2012, and redemption is subject to the prior approval of the Board of Governors of the Federal Reserve System, as required by law or regulation. On March 16, 2020, the Corporation partially redeemed $10.0 million of its subordinated debentures, with an interest rate of 3.45 percent, all of which were held by FMC Trust II. As a result, FMC Trust II used the proceeds from such partial redemption to concurrently redeem a like amount of its capital securities at an aggregate principal redemption price of $10.0 million. Debentures issued by the Corporation in the principal amount of $41.7 million remain outstanding at December 31, 2021 with a maturity date of September 15, 2037. The Corporation holds all of the remaining outstanding common securities of FMC Trust II.

•Ameriana Capital Trust I. On December 31, 2015 the Corporation acquired Ameriana Capital Trust I in conjunction with its acquisition of Ameriana Bancorp, Inc. The subordinated debentures of Ameriana Capital Trust I were entered into in March 2006 for $10.3 million and have a maturity of March 2036. Ameriana could not redeem the debenture prior to March 2011, and redemption is subject to the prior approval of the Board of Governors of the Federal Reserve System, as required by law or regulation. The interest rate is equal to the three-month LIBOR plus 1.50 percent, reset quarterly. Interest is payable in March, June, September and December of each year. The interest rate at December 31, 2021 and 2020 was 1.70 percent and 1.72 percent, respectively. The Corporation holds all of the outstanding common securities of Ameriana Capital Trust I.

•On November 1, 2013, the Corporation completed the private issuance and sale to four institutional investors of an aggregate of $70 million of debt comprised of (a) 5.00 percent Fixed-to-Floating Rate Senior Notes due 2028 in the aggregate principal amount of $5 million (the "Senior Debt") and (b) 6.75 percent Fixed-to-Floating Rate Subordinated Notes due 2028 in the aggregate principal amount of $65 million (the "Subordinated Debt"). The interest rate on the Senior Debt and Subordinated Debt remains fixed for the first ten (10) years and will become floating thereafter. Once the rates convert to floating on October 30, 2023, the Senior Debt will have an annual floating rate equal to the three-month LIBOR plus 2.345 percent and the Subordinated Debt will have an annual floating rate equal to the three-month LIBOR plus 4.095 percent. The Corporation has an option to redeem the Subordinated Debt in whole or in part at a redemption price equal to 100 percent of the principal amount of the redeemed Subordinated Notes, plus accrued and unpaid interest to the date of the redemption. The option of redemption is subject to the approval of the Federal Reserve Board. The Corporation has an option to redeem the Senior Debt in whole or in part at a redemption price equal to 100 percent of the principal amount of the redeemed Senior Notes, plus accrued and unpaid interest to the date of the redemption; provided, however, that no Subordinated Notes (as defined in the Issuing and Paying Agency Agreement) may remain outstanding subsequent to any early redemption of Senior Notes. The Subordinated Debt and the Senior Debt options to redeem begin with the interest payment date on October 30, 2023, or on any scheduled interest payment date thereafter. The Senior Debt agreement contains certain customary representations and warranties and financial and negative covenants. As of December 31, 2021 and 2020 the Corporation was in compliance with these covenants.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1I
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Risk Management Objective of Using Derivatives

The Corporation is exposed to certain risks arising from both its business operations and economic conditions. The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, the Corporation enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Corporation’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation’s known or expected cash payments principally related to certain variable-rate liabilities. The Corporation also has derivatives that are a result of a service the Corporation provides to certain qualifying customers, and, therefore, are not used to manage interest rate risk in the Corporation’s assets or liabilities. The Corporation manages a matched book with respect to its derivative instruments offered as a part of this service to its customers in order to minimize its net risk exposure resulting from such transactions.

Cash Flow Hedges of Interest Rate Risk

The Corporation’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Corporation primarily uses interest rate swaps and interest rate caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the payment of fixed amounts to a counterparty in exchange for the Corporation receiving variable payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. As of December 31, 2021 and December 31, 2020, the Corporation had four interest rate swaps with a notional amount of $60.0 million that were designated as cash flow hedges.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During 2021, $26.0 million of the interest rate swaps were used to hedge the variable cash outflows (LIBOR-based) associated with existing trust preferred securities when the outflows converted from a fixed rate to variable rate in September 2012. In addition, $10.0 million of interest rate swaps were used to hedge the variable cash outflows (LIBOR-based) associated with one Federal Home Loan Bank advances. Finally, the remaining $24.0 million of interest rate swaps were used to hedge the variable cash outflows (Ameribor-based) associated with a brokered deposit originated in December 2020. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the years ended December 31, 2021 and 2020, the Corporation did not recognize any ineffectiveness.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Corporation’s variable-rate liabilities. During the next twelve months, the Corporation expects to reclassify $724,000 from accumulated other comprehensive income to interest expense.

Non-designated Hedges

The Corporation does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and result from a service the Corporation provides to certain customers. The Corporation executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Corporation executes with a third party, such that the Corporation minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. The notional amount of customer-facing swaps was approximately $1.0 billion and $985.0 million as of December 31, 2021 and December 31, 2020, respectively. This amount is offset with third party counterparties, as described above.

Fair Values of Derivative Instruments on the Balance Sheet

The table below presents the fair value of the Corporation’s derivative financial instruments as well as their classification on the Balance Sheet as of December 31, 2021 and December 31, 2020.

Asset Derivatives

Liability Derivatives

December 31, 2021

December 31, 2020

December 31, 2021

December 31, 2020

Balance Sheet Location

Fair
Value

Balance Sheet Location

Fair
Value

Balance Sheet Location

Fair
Value

Balance Sheet Location

Fair
Value

Derivatives designated as hedging instruments:

Interest rate contracts

Other Assets

—

Other Assets

—

Other Liabilities

835

Other Liabilities

2,018

Derivatives not designated as hedging instruments:

Interest rate contracts

Other Assets

41,133

Other Assets

74,335

Other Liabilities

41,133

Other Liabilities

74,335

The amount of gain (loss) recognized in other comprehensive income is included in the table below for the periods indicated.


Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) For the Year Ended December 31,
Derivatives in Cash Flow Hedging Relationships	2021		2020
Interest rate products	$	138	$	(1,480)

Effect of Derivative Instruments on the Income Statement

The tables below present the effect of the Corporation’s derivative financial instruments on the Income Statement for the years ended December 31, 2021, 2020 and 2019.


Derivatives Designated as Hedging Instruments under FASB ASC 815-10	Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion)	Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income (Effective Portion)
		2021		2020		2019
Interest rate contracts	Interest expense	$	(1,044)	$	(906)	$	(334)

The Corporation’s exposure to credit risk occurs because of nonperformance by its counterparties. The counterparties approved by the Corporation are usually financial institutions, which are well capitalized and have credit ratings through Moody’s and/or Standard & Poor’s, at or above investment grade. The Corporation’s control of such risk is through quarterly financial reviews, comparing mark-to-market values with policy limitations, credit ratings and collateral pledging.

Credit-Risk-Related Contingent Features

The Corporation has agreements with certain of its derivative counterparties that contain a provision where if the Corporation fails to maintain its status as a well/adequately capitalized institution, then the Corporation could be required to terminate or fully collateralize all outstanding derivative contracts. Additionally, the Corporation has agreements with certain of its derivative counterparties that contain a provision where if the Corporation defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Corporation could also be declared in default on its derivative obligations. As of December 31, 2021, the termination value of derivatives in a net liability position related to these agreements was $32.6 million. As of December 31, 2021, the Corporation has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $50.8 million. If the Corporation had breached any of these provisions at December 31, 2021, it could have been required to settle its obligations under the agreements at their termination value.

Fair Values of Financial Instruments

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Values of Financial Instruments

FAIR VALUES OF FINANCIAL INSTRUMENTS

The Corporation used fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The accounting guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 applies only when other guidance requires or permits assets or liabilities to be measured at fair value; it does not expand the use of fair value in any new circumstances.

As defined in ASC 820, fair value is the price to sell an asset or transfer a liability in an orderly transaction between market participants. It represents an exit price at the measurement date. Market participants are buyers and sellers, who are independent, knowledgeable, and willing and able to transact in the principal (or most advantageous) market for the asset or liability being measured. Current market conditions, including imbalances between supply and demand, are considered in determining fair value. The Corporation values its assets and liabilities in the principal market where it sells the particular asset or transfers the liability with the greatest volume and level of activity. In the absence of a principal market, the valuation is based on the most advantageous market for the asset or liability (i.e., the market where the asset could be sold or the liability transferred at a price that maximizes the amount to be received for the asset or minimizes the amount to be paid to transfer the liability).

Valuation inputs refer to the assumptions market participants would use in pricing a given asset or liability. Inputs can be observable or unobservable. Observable inputs are those assumptions which market participants would use in pricing the particular asset or liability. These inputs are based on market data and are obtained from a source independent of the Corporation. Unobservable inputs are assumptions based on the Corporation’s own information or estimate of assumptions used by market participants in pricing the asset or liability. Unobservable inputs are based on the best and most current information available on the measurement date. All inputs, whether observable or unobservable, are ranked in accordance with a prescribed fair value hierarchy which gives the highest ranking to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest ranking to unobservable inputs for which there is little or no market activity (Level 3). Fair values for assets or liabilities classified as Level 2 are based on one or a combination of the following factors: (i) quoted prices for similar assets; (ii) observable inputs for the asset or liability, such as interest rates or yield curves; or (iii) inputs derived principally from or corroborated by observable market data. The level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation considers an input to be significant if it drives 10 percent or more of the total fair value of a particular asset or liability.

RECURRING MEASUREMENTS

Assets and liabilities are considered to be measured at fair value on a recurring basis if fair value is measured regularly (i.e., daily, weekly, monthly or quarterly). Recurring valuation occurs at a minimum on the measurement date. Assets and liabilities are considered to be measured at fair value on a nonrecurring basis if the fair value measurement of the instrument does not necessarily result in a change in the amount recorded on the balance sheet. Generally, nonrecurring valuation is the result of the application of other accounting pronouncements which require assets or liabilities to be recorded at the lower of cost or fair value. The fair value of assets or liabilities transferred in or out of Level 3 is measured on the transfer date, with any additional changes in fair value subsequent to the transfer considered to be realized or unrealized gains or losses.

Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the

accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Investment Securities

Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities. Where significant observable inputs, other than Level 1 quoted prices, are available, securities are classified within Level 2 of the valuation hierarchy. Level 2 securities include U.S. Government-sponsored agency and mortgage-backed securities, state and municipal securities and corporate obligations securities. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy and include state and municipal securities, U.S. Government-sponsored mortgage-backed securities and corporate obligations securities. Level 3 fair value for securities was determined using a discounted cash flow model that incorporated market estimates of interest rates and volatility in markets that have not been active.

Third party vendors compile prices from various sources and may apply such techniques as matrix pricing to determine the value of identical or similar investment securities (Level 2). Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment securities. Any investment security not valued based upon the methods above are considered Level 3.

Interest Rate Derivative Agreements

See information regarding the Corporation’s interest rate derivative products in NOTE 12. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES of these Notes to Consolidated Financial Statements.

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the ASC 820-10 fair value hierarchy in which the fair value measurements fall at December 31, 2021 and 2020.


			Fair Value Measurements Using:
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
December 31, 2021	Fair Value		(Level 1)		(Level 2)		(Level 3)
Available for sale securities:
U.S. Government-sponsored agency securities	$	95,136	$	—	$	95,136	$	—
U.S. Treasury	999		999		—		—
State and municipal	1,576,532		—		1,571,076		5,456
U.S. Government-sponsored mortgage-backed securities	667,605		—		667,601		4

Corporate obligations	4,279		—		4,248		31

Interest rate swap asset	41,133		—		41,133		—

Interest rate swap liability	41,968		—		41,968		—


			Fair Value Measurements Using:
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
December 31, 2020	Fair Value		(Level 1)		(Level 2)		(Level 3)
Available for sale securities:
U.S. Government-sponsored agency securities	$	2,430	$	—	$	2,430	$	—

State and municipal	1,257,885		—		1,255,441		2,444
U.S. Government-sponsored mortgage-backed securities	654,669		—		654,665		4

Corporate obligations	4,135		—		4,104		31

Interest rate swap asset	74,335		—		74,335		—

Interest rate swap liability	76,353		—		76,353		—

LEVEL 3 RECONCILIATION

The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable Level 3 inputs for year ended December 31, 2021 and 2020.


	Available for Sale Securities
	For The Year Ended
	December 31, 2021		December 31, 2020
Beginning Balance	$	2,479	$	2,893


Included in other comprehensive income	227		16
Purchases, issuances, and settlements	3,241		—

Principal payments	(456)		(430)
Ending balance	$	5,491	$	2,479

There were no gains or losses included in earnings that were attributable to the changes in unrealized gains or losses related to assets or liabilities held at December 31, 2021 or 2020.

TRANSFERS BETWEEN LEVELS

There were no transfers in or out of Level 3 during 2021 or 2020.

NONRECURRING MEASUREMENTS

Following is a description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy for year ended December 31, 2021 and 2020.


			Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets	Significant Other Observable Inputs	Significant Unobservable Inputs
December 31, 2021	Fair Value		(Level 1)	(Level 2)	(Level 3)
Collateral dependent loans	$	24,491	—	—	$	24,491
Other real estate owned	$	96	—	—	$	96


			Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets	Significant Other Observable Inputs	Significant Unobservable Inputs
December 31, 2020	Fair Value		(Level 1)	(Level 2)	(Level 3)
Collateral dependent loans	$	37,250	—	—	$	37,250
Other real estate owned	$	544	—	—	$	544

Collateral Dependent Loans and Other Real Estate Owned

Determining fair value for collateral dependent loans and other real estate requires obtaining a current independent appraisal of the collateral and applying a discount factor, which includes selling costs if applicable, to the value. The fair value of real estate is generally based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions.

UNOBSERVABLE (LEVEL 3) INPUTS

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at December 31, 2021 and 2020.

December 31, 2021

Fair Value

Valuation Technique

Unobservable Inputs

Range (Weighted-Average)

State and municipal securities

5,456

Discounted cash flow

Maturity Call Date
US Muni BQ curve
Discount rate
Weighted-average coupon

1 month to 15 years

A- to BBB-

0.75% - 4%

3.7%

Corporate obligations and U.S. Government-sponsored mortgage backed securities

Discounted cash flow

Risk free rate
plus Premium for illiquidity
Weighted-average coupon

3 month LIBOR

plus 200bps

Collateral dependent loans

24,491

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability
Weighted-average discount by loan balance

0% - 10% 5.5%

Other real estate owned

Appraisals

Discount to reflect current market conditions
Weighted-average discount of other real estate owned balance

0% - 44% 43.5%

December 31, 2020

Fair Value

Valuation Technique

Unobservable Inputs

Range (Weighted-Average)

State and municipal securities

2,444

Discounted cash flow

Maturity Call Date
US Muni BQ curve
Discount rate
Weighted-average coupon

1 month to 15 years

A- to BBB-

1.5% - 4%

3.9%

Corporate obligations and U.S. Government-sponsored mortgage backed securities

Discounted cash flow

Risk free rate
plus Premium for illiquidity
Weighted-average coupon

3 month LIBOR

plus 200bps

Collateral dependent loans

37,250

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability
Weighted-average discount by loan balance

0% - 10% 6.0%

Other real estate owned

544

Appraisals

Discount to reflect current market conditions
Weighted-average discount of other real estate owned balance

0% - 30% 26.2%

The following is a discussion of the sensitivity of significant unobservable inputs, the interrelationships between those inputs and other unobservable inputs used in recurring fair value measurement and how those inputs might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement.

State and Municipal Securities, Corporate Obligations, and U.S. Government-sponsored Mortgage Backed Securities

The significant unobservable inputs used in the fair value measurement of the Corporation's state and municipal securities, corporate obligations

and U.S. Government-sponsored mortgage backed securities are premiums for unrated securities and marketability discounts. Significant

increases or decreases in either of those inputs in isolation would result in a significantly lower or higher fair value measurement. Generally,

changes in either of those inputs will not affect the other input.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table presents estimated fair values of the Corporation's financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2021 and 2020.


	2021
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets at December 31:
Cash and cash equivalents	$	167,146	$	167,146	$	—	$	—
Interest-bearing deposits	474,154		474,154		—		—
Investment securities available for sale	2,344,551		999		2,338,061		5,491
Investment securities held to maturity	2,179,802		—		2,188,600		13,903
Loans held for sale	11,187		—		11,187		—
Loans	9,046,464		—		—		9,068,319
Federal Home Loan Bank stock	28,736		—		28,736		—
Interest rate swap asset	41,133		—		41,133		—
Interest receivable	57,187		—		57,187		—
Liabilities at December 31:
Deposits	$	12,732,577	$	12,038,992	$	690,089	$	—
Borrowings:

Securities sold under repurchase agreements	181,577		—		181,572		—
Federal Home Loan Bank advances	334,055		—		337,005		—
Subordinated debentures and term loans	118,618		—		107,892		—
Interest rate swap liability	41,968		—		41,968		—
Interest payable	2,762		—		2,762		—


	2020
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets at December 31:
Cash and cash equivalents	$	192,896	$	192,896	$	—	$	—
Interest-bearing deposits	392,305		392,305		—		—
Investment securities available for sale	1,919,119		—		1,916,640		2,479
Investment securities held to maturity	1,227,668		—		1,260,815		19,478
Loans held for sale	3,966		—		3,966		—
Loans	9,112,526		—		—		9,191,628
Federal Home Loan Bank stock	28,736		—		28,736		—
Interest rate swap asset	74,335		—		74,335		—
Interest receivable	53,948		—		53,948		—
Liabilities at December 31:
Deposits	$	11,361,610	$	10,482,865	$	878,257	$	—
Borrowings:

Securities sold under repurchase agreements	177,102		—		177,097		—
Federal Home Loan Bank advances	389,430		—		399,991		—
Subordinated debentures and term loans	118,380		—		108,439		—
Interest rate swap liability	76,353		—		76,353		—
Interest payable	3,287		—		3,287		—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, as of December 31, 2021 and 2020:


	Accumulated Other Comprehensive Income (Loss)
	Unrealized Gains (Losses) on Securities Available for Sale		Unrealized Gains (Losses) on Cash Flow Hedges		Unrealized Gains (Losses) on Defined Benefit Plans		Total
Balance at December 31, 2020	$	87,988	$	(1,594)	$	(11,558)	$	74,836
Other comprehensive income before reclassifications	(23,732)		109		7,491		(16,132)
Amounts reclassified from accumulated other comprehensive income	(4,482)		825		66		(3,591)
Period change	(28,214)		934		7,557		(19,723)

Balance at December 31, 2021	$	59,774	$	(660)	$	(4,001)	$	55,113


Balance at December 31, 2019	$	38,872	$	(1,141)	$	(9,857)	$	27,874
Other comprehensive income before reclassifications	58,513		(1,169)		(1,767)		55,577
Amounts reclassified from accumulated other comprehensive income	(9,397)		716		66		(8,615)
Period change	49,116		(453)		(1,701)		46,962

Balance at December 31, 2020	$	87,988	$	(1,594)	$	(11,558)	$	74,836

The following table presents the reclassification adjustments out of accumulated other comprehensive income (loss) that were included in net income in the Consolidated Statements of Income for the years ended December 31, 2021, 2020 and 2019:


	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Year Ended December 31,
Details about Accumulated Other Comprehensive Income (Loss) Components	2021		2020		2019		Affected Line Item in the Statements of Income
Unrealized gains (losses) on available for sale securities (1)
Realized securities gains reclassified into income	$	5,674	$	11,895	$	4,415	Other income - net realized gains on sales of available for sale securities
Related income tax benefit (expense)	(1,192)		(2,498)		(927)		Income tax expense
	$	4,482	$	9,397	$	3,488

Unrealized gains (losses) on cash flow hedges (2)
Interest rate contracts	$	(1,044)	$	(906)	$	(334)	Interest expense - subordinated debentures and term loans
Related income tax benefit (expense)	219		190		70		Income tax expense
	$	(825)	$	(716)	$	(264)

Unrealized gains (losses) on defined benefit plans
Amortization of net loss and prior service costs	$	(84)	$	(84)	$	(106)	Other expenses - salaries and employee benefits
Related income tax benefit (expense)	18		18		22		Income tax expense
	$	(66)	$	(66)	$	(84)

Total reclassifications for the period, net of tax	$	3,591	$	8,615	$	3,140

(1) For additional detail related to unrealized gains (losses) on available for sale securities and related amounts reclassified from accumulated other comprehensive income see NOTE 4. INVESTMENT SECURITIES of these Notes to Consolidated Financial Statements.

(2) For additional detail related to unrealized gains (losses) on cash flow hedges and related amounts reclassified from accumulated other comprehensive income see NOTE 12. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES of these Notes to Consolidated Financial Statements.

Regulatory Capital and Dividends

12 Months Ended

Dec. 31, 2021

Banking and Thrift, Interest [Abstract]

Regulatory Capital and Dividends

REGULATORY CAPITAL AND DIVIDENDS

Regulatory Capital

Capital adequacy is an important indicator of financial stability and performance. The Corporation and the Bank are subject to various regulatory

capital requirements administered by the federal banking agencies and are assigned to a capital category. The assigned capital category is

largely determined by four ratios that are calculated according to the regulations: total risk-based capital, tier 1 risk-based capital, CET1, and tier

1 leverage ratios. The ratios are intended to measure capital relative to assets and credit risk associated with those assets and off-balance sheet

exposures of the entity. The capital category assigned to an entity can also be affected by qualitative judgments made by regulatory agencies

about the risk inherent in the entity's activities that are not part of the calculated ratios.

There are five capital categories defined in the regulations, ranging from well capitalized to critically undercapitalized. Classification of a bank in

any of the undercapitalized categories can result in actions by regulators that could have a material effect on a bank's operations. Quantitative

measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios of total and tier 1

capital to risk-weighted assets, and of tier 1 capital to average assets, or leverage ratio, all of which are calculated as defined in the

regulations. Banks with lower capital levels are deemed to be undercapitalized, significantly undercapitalized or critically undercapitalized,

depending on their actual levels. The appropriate federal regulatory agency may also downgrade a bank to the next lower capital category upon

a determination that the bank is in an unsafe or unsound practice. Banks are required to monitor closely their capital levels and to notify their

appropriate regulatory agency of any basis for a change in capital category.

Basel III was effective for the Corporation on January 1, 2015 and requires the Corporation and the Bank to maintain the minimum capital and

leverage ratios as defined in the regulation and as illustrated in the table below, which capital to risk-weighted asset ratios include a 2.5 percent capital conservation buffer. Under Basel III, in order to avoid limitations on capital distributions, including dividends, the Corporation must hold a 2.5 percent capital conservation buffer above the adequately capitalized CET1 to risk-weighted assets ratio (which buffer is reflected in the required ratios below). Under Basel III, the Corporation and Bank elected to opt-out of including accumulated other comprehensive income in regulatory capital. As of December 31, 2021, the Bank met all capital adequacy requirements to be considered well capitalized under the fully phased-in Basel III capital rules. There is no threshold for well capitalized status for bank holding companies.

As part of a March 27, 2020 joint statement of federal banking regulators, an interim final rule that allowed banking organizations to mitigate the

effects of the CECL accounting standard on their regulatory capital was announced. Banking organizations could elect to mitigate the estimated

cumulative regulatory capital effects of CECL for up to two years. This two-year delay was to be in addition to the three-year transition period that

federal banking regulators had already made available. While the 2021 CAA provided for a further extension of the mandatory adoption of CECL until January 1, 2022, the federal banking regulators elected to not provide a similar extension to the two year mitigation period applicable to regulatory capital effects. Instead, the federal banking regulators require that, in order to utilize the additional two-year delay, banking organizations must have adopted the CECL standard no later than December 31, 2020, as required by the CARES Act. As a result, because implementation of the CECL standard was delayed by the Corporation until January 1, 2021, it began phasing in the cumulative effect of the adoption on its regulatory capital, at a rate of 25 percent per year, over a three-year transition period that began on January 1, 2021. Under that phase-in schedule, the cumulative effect of the adoption will be fully reflected in regulatory capital on January 1, 2024.

The Corporation's and Bank's actual and required capital ratios as of December 31, 2021 and December 31, 2020 were as follows:


					Prompt Corrective Action Thresholds
	Actual				Basel III Minimum Capital Required				Well Capitalized
December 31, 2021	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total risk-based capital to risk-weighted assets
First Merchants Corporation	$	1,582,481	13.92	%	$	1,193,840	10.50	%	N/A		N/A
First Merchants Bank	1,453,358		12.74		1,197,515		10.50		$	1,140,490	10.00	%
Tier 1 capital to risk-weighted assets
First Merchants Corporation	$	1,374,240	12.09	%	$	966,442	8.50	%	N/A		N/A
First Merchants Bank	1,309,685		11.48		969,417		8.50		$	912,392	8.00	%
Common equity tier 1 capital to risk-weighted assets
First Merchants Corporation	$	1,327,634	11.68	%	$	795,893	7.00	%	N/A		N/A
First Merchants Bank	1,309,685		11.48		798,343		7.00		$	741,319	6.50	%
Tier 1 capital to average assets
First Merchants Corporation	$	1,374,240	9.30	%	$	590,758	4.00	%	N/A		N/A
First Merchants Bank	1,309,685		8.88		589,994		4.00		$	737,493	5.00	%


					Prompt Corrective Action Thresholds
	Actual				Basel III Minimum Capital Required				Well Capitalized
December 31, 2020	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total risk-based capital to risk-weighted assets
First Merchants Corporation	$	1,475,551	14.36	%	$	1,079,015	10.50	%	N/A		N/A
First Merchants Bank	1,412,805		13.70		1,082,430		10.50		$	1,030,886	10.00	%
Tier 1 capital to risk-weighted assets
First Merchants Corporation	$	1,282,070	12.48	%	$	873,488	8.50	%	N/A		N/A
First Merchants Bank	1,283,922		12.45		876,253		8.50		$	824,708	8.00	%
Common equity tier 1 capital to risk-weighted assets
First Merchants Corporation	$	1,235,702	12.02	%	$	719,343	7.00	%	N/A		N/A
First Merchants Bank	1,283,922		12.45		721,620		7.00		$	670,076	6.50	%
Tier 1 capital to average assets
First Merchants Corporation	$	1,282,070	9.57	%	$	536,123	4.00	%	N/A		N/A
First Merchants Bank	1,283,922		9.59		535,279		4.00		$	669,098	5.00	%

On April 9, 2020, federal banking regulators issued an interim final rule to modify the Basel III regulatory capital rules applicable to banking

organizations to allow those organizations participating in the PPP to neutralize the regulatory capital effects of participating in the program. The

interim final rule, which became effective April 13, 2020, clarifies that PPP loans receive a zero percent risk weight for purposes of determining

risk-weighted assets and the CET1, Tier 1 and Total Risk-Based capital ratios. At December 31, 2021 and 2020, risk-weighted assets included $106.6 million and $667.1 million, respectively, of PPP loans at a zero risk weight.

Management believes that all of the above capital ratios are meaningful measurements for evaluating the safety and soundness of the

Corporation. Traditionally, the banking regulators have assessed bank and bank holding company capital adequacy based on both the amount

and the composition of capital, the calculation of which is prescribed in federal banking regulations. The Federal Reserve focuses its assessment

of capital adequacy on a component of Tier 1 capital known as CET1. Because the Federal Reserve has long indicated that voting common

shareholders' equity (essentially Tier 1 risk-based capital less preferred stock and non-controlling interest in subsidiaries) generally should be the

dominant element in Tier 1 risk-based capital, this focus on CET1 is consistent with existing capital adequacy categories. Tier I regulatory capital

consists primarily of total stockholders’ equity and subordinated debentures issued to business trusts categorized as qualifying borrowings, less

non-qualifying intangible assets and unrealized net securities gains or losses.

Because these measures are not defined in GAAP, they are considered non-GAAP financial measures. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. For a reconciliation of GAAP measures to regulatory measures (non-GAAP), see additional details within the “Capital” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 7 of this Annual Report on Form 10-K.

Dividends

The Corporation's principal source of funds for dividend payments to shareholders is dividends received from the Bank. Banking regulations limit the maximum amount of dividends that a bank may pay without requesting prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the bank’s retained income (as defined under the regulations) for the current year plus those for the previous two years, subject to the capital requirements described above. As of December 31, 2021, the amount available for dividends from the Corporation’s subsidiaries (both banking and non-banking), without prior regulatory approval or notice, was $194,434,000.

Additionally, the Corporation has a Dividend Reinvestment and Stock Purchase Plan, enabling stockholders to elect to have their cash dividends on all shares automatically reinvested in additional shares of the Corporation’s common stock. In addition, stockholders may elect to make optional cash payments up to an aggregate of $5,000 per quarter for the purchase of additional shares of common stock. The stock is credited to participant accounts at fair market value. Dividends are reinvested on a quarterly basis.

Stockholders' Equity

The Corporation adopted the current expected credit losses ("CECL") model for calculating the allowance for credit losses on January 1, 2021.

CECL replaces the previous "incurred loss" model for measuring credit losses, which encompassed allowances for current known and inherent

losses within the portfolio, with an "expected loss" model for measuring credit losses, which encompasses allowances for losses expected to be

incurred over the life of the portfolio. As of the adoption and day one measurement date of January 1, 2021, the Corporation recorded a one-time

cumulative-effect adjustment to retained earnings, net of income taxes, of $68.0 million. See additional details of the Corporation's CECL

adoption in NOTE 1. NATURE OF OPERATIONS AND SUMMARY OR SIGNIFICANT ACCOUNTING POLICIES and NOTE 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES of these Notes to Consolidated Financial Statements.

Stock Repurchase Program

On September 3, 2019, the Board of Directors of the Corporation approved a stock repurchase program of up to 3 million shares of the Corporation's outstanding common stock; provided, however, that the total aggregate investment in shares repurchased under the program was not to exceed $75 million. On a share basis, the amount of common stock subject to the repurchase program represented approximately 5 percent of the Corporation's outstanding shares. During the first quarter of 2020, the Corporation repurchased 1,634,437 of its common shares for $55.9 million at an average price of $34.21, which resulted in the aggregate investment in share repurchases to equal $75.0 million, the maximum allowable under the plan. As such, the September 2019 program terminated upon its own terms following the repurchases.

On January 27, 2021, the Board of Directors of the Corporation approved a stock repurchase program of up to 3,333,000 shares of the Corporation's outstanding common stock; provided, however, that the total aggregate investment in shares repurchased under the program may not exceed $100,000,000. On a share basis, the amount of common stock subject to the repurchase program represents approximately 6 percent of the Corporation's outstanding shares. During 2021, the Corporation repurchased 646,102 of its common shares for $25.4 million at an

average price of $39.38.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Loan Servicing

12 Months Ended

Dec. 31, 2021

Banking and Thrift, Other Disclosures [Abstract]

Loan Servicing

LOAN SERVICING

Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid balances are as follows for December 31, 2021, 2020 and 2019. The amount of capitalized servicing assets is considered immaterial.


	2021		2020		2019
Mortgage loan portfolios serviced for:
Federal Home Loan Mortgage Corporation	$	765,547	$	514,539	$	354,393
Fannie Mae	60,839		69,072		82,922
Equity Bank	60,107		—		—
Federal Home Loan Bank	32,558		51,479		76,815
Chevy Chase Mortgage Company	85		134		164
Total	$	919,136	$	635,224	$	514,294

Share-Based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

SHARE-BASED COMPENSATION

Stock options and RSAs have been issued to directors, officers and other management employees under the Corporation's 2009 Long-term Equity Incentive Plan, the 2019 Long-term Equity Incentive Plan and the Equity Compensation Plan for Non-Employee Directors. The stock options, which have a ten-year life, become 100 percent vested based on time ranging from one year to two years and are fully exercisable when vested. Option exercise prices equal the Corporation's common stock closing price on NASDAQ on the date of grant. The RSAs issued to employees and non-employee directors provide for the issuance of shares of the Corporation's common stock at no cost to the holder and generally vest after three years. The RSAs vest only if the employee is actively employed by the Corporation on the vesting date and, therefore, any unvested shares are forfeited. For non-employee directors, the RSAs vest only if the non-employee director remains as an active board member on the vesting date and, therefore, any unvested shares are forfeited. The RSAs for employees and non-employee directors are either immediately vested at retirement, disability or death, or, continue to vest after retirement, disability or death, depending on the plan under which the shares were granted.

The Corporation’s 2019 ESPP provides eligible employees of the Corporation and its subsidiaries an opportunity to purchase shares of common stock of the Corporation through quarterly offerings financed by payroll deductions. The price of the stock to be paid by the employees shall be equal to 85 percent of the average of the closing price of the Corporation’s common stock on each trading day during the offering period. However, in no event shall such purchase price be less than the lesser of an amount equal to 85 percent of the market price of the Corporation’s stock on the offering date or an amount equal to 85 percent of the market value on the date of purchase. Common stock purchases are made quarterly and are paid through advance payroll deductions up to a calendar year maximum of $25,000.

Compensation expense related to unvested share-based awards is recorded by recognizing the unamortized grant date fair value of these awards over the remaining service periods of those awards, with no change in historical reported fair values and earnings. Awards are valued at fair value in accordance with provisions of share-based compensation guidance and are recognized on a straight-line basis over the service periods of each award. To complete the exercise of vested stock options, RSAs and ESPP options, the Corporation generally issues new shares from its authorized but unissued share pool. Share-based compensation for the years ended December 31, 2021, 2020, and 2019 was $4.8 million, $4.6 million, and $4.1 million, respectively, and has been recognized as a component of salaries and benefits expense in the accompanying CONSOLIDATED STATEMENTS OF INCOME.

Share-based compensation expense recognized in the CONSOLIDATED STATEMENTS OF INCOME is based on awards ultimately expected to vest and is reduced for estimated forfeitures. Share-based compensation guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. Pre-vesting forfeitures were estimated to be approximately 0.5 percent for the year ended December 31, 2021, based on historical experience.

The following table summarizes the components of the Corporation's share-based compensation awards recorded as an expense and the income tax benefit of such awards. In 2021 and 2020, the Corporation had RSAs vest primarily at a stock price that was lower than the grant date stock price, which resulted in the recognition of income tax expense at vesting of $112,000 and $394,000, respectively. For the year ended 2019, RSAs vested at a stock price higher than the grant date stock price resulting in recognition of income tax benefit at vesting of $363,000.


	Years Ended December 31,
	2021		2020		2019
Stock and ESPP Options
Pre-tax compensation expense	$	155	$	96	$	101
Income tax benefit	(92)		(29)		(70)
Stock and ESPP option expense, net of income taxes	$	63	$	67	$	31
Restricted Stock Awards
Pre-tax compensation expense	$	4,607	$	4,504	$	4,014
Income tax benefit	(855)		(552)		(1,206)
Restricted stock awards expense, net of income taxes	$	3,752	$	3,952	$	2,808
Total Share-Based Compensation:
Pre-tax compensation expense	$	4,762	$	4,600	$	4,115
Income tax benefit	(947)		(581)		(1,276)
Total share-based compensation expense, net of income taxes	$	3,815	$	4,019	$	2,839

As of December 31, 2021, unrecognized compensation expense related to RSAs was $8.4 million and is expected to be recognized over weighted-average period of 1.90 years. The Corporation did not have any unrecognized compensation expense related to stock options as of December 31, 2021.

Stock option activity under the Corporation's stock option plans, as of December 31, 2021, and changes during the year ended December 31, 2021, were as follows:


	Number of Shares	Weighted-Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value
Outstanding at January 1, 2021	45,800	$	15.00	—	$	—

Exercised	(17,300)	$	11.46	—	$	—

Outstanding December 31, 2021	28,500	$	17.14	1.50	$	705,330
Vested and Expected to Vest at December 31, 2021	28,500	$	17.14	1.50	$	705,330
Exercisable at December 31, 2021	28,500	$	17.14	1.50	$	705,330

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Corporation's closing stock price on the last trading day of 2021 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their stock options on December 31, 2021. The amount of aggregate intrinsic value will change based on the fair market value of the Corporation's common stock.

The aggregate intrinsic value of stock options exercised during the years ended December 31, 2021 and 2020 was $559,000 and $261,000, respectively. Cash receipts of stock options exercised during 2021 and 2020 were $198,000 and $115,000, respectively.

The following table summarizes information on unvested RSAs outstanding as of December 31, 2021:


	Number of Shares	Weighted-Average Grant Date Fair Value
Unvested RSAs at January 1, 2021	357,883	$	36.30
Granted	153,936	$	42.49
Forfeited	(6,050)	$	35.59
Vested	(94,510)	$	48.27
Unvested RSAs at December 31, 2021	411,259	$	35.86

The grant date fair value of ESPP options was estimated at the beginning of the October 1, 2021, quarterly offering period of approximately $25,000. The ESPP options vested during the three months ending December 31, 2021, leaving no unrecognized compensation expense related to unvested ESPP options at December 31, 2021.

Pension and Other Post Retirement Benefit Plans

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Pension and Other Post Retirement Benefit Plans

PENSION AND OTHER POST RETIREMENT BENEFIT PLANS

The Corporation’s defined-benefit pension plans, including non-qualified plans for certain employees, former employees and former non-employee directors, cover approximately 10 percent of the Corporation’s employees. In 2005, the Board of Directors of the Corporation approved the curtailment of the accumulation of defined benefits for future services provided by certain participants in the First Merchants Corporation Retirement Plan. No additional pension benefits have been earned by any employees who had not attained both the age of 55 and accrued at least 10 years of vesting service as of March 1, 2005. The benefits are based primarily on years of service and employees’ pay near retirement. Contributions are intended to provide not only for benefits attributed to service-to-date, but also for those expected to be earned in the future.

The table below sets forth the plans’ funded status and amounts recognized in the consolidated balance sheets at December 31, using measurement dates of December 31, 2021 and 2020.


	2021		2020
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	80,786	$	76,770
Service cost	—		16
Interest cost	1,760		2,343
Actuarial (gain) loss	(2,919)		6,957
Benefits paid	(5,353)		(5,300)


Benefit obligation at end of year	$	74,274	$	80,786

Change in Plan Assets:
Fair value of plan assets at beginning of year	$	88,512	$	85,121
Actual return on plan assets	10,786		7,925
Employer contributions	643		766
Benefits paid	(5,353)		(5,300)

End of year	94,588		88,512
Funded status at end of year	$	20,314	$	7,726

Assets and Liabilities Recognized in the Balance Sheets:
Deferred tax asset	$	1,545	$	3,970
Assets	$	24,750	$	12,681
Liabilities	$	4,436	$	4,955

As of December 31, 2021, the funded status of the plans increased $12.6 million and the accumulated other comprehensive loss, net of tax, decreased $7.6 million from December 31, 2020. The net impact of the primary contributing factors to these changes were the increased discount rate of 40 basis points from 2.3 percent to 2.7 percent, which decreased the liability by $3.0 million. This was offset by a $300,000 increase in the liability due to the mortality projection improvement scale update from MP-2020 to MP-2021. The plan's assets earned a return of $10.8 million, which was $6.5 million more than the expected return. Finally, new census data was incorporated into the current year valuation.

The accumulated benefit obligation for all defined benefit plans was $74.3 million and $80.8 million at December 31, 2021 and 2020, respectively.

Information for pension plans with an accumulated benefit obligation in excess of plan assets consists solely of the non-qualified plans for certain employees, former employees and former non-employee directors, and is included in the table below.


	December 31, 2021		December 31, 2020
Projected benefit obligation	$	4,436	$	4,955
Accumulated benefit obligation	$	4,436	$	4,955
Fair value of plan assets	$	—	$	—

The Corporation recognized expense under these non-qualified plans of $117,000, $165,000 and $192,000 for 2021, 2020 and 2019, respectively.

The following table shows the components of net periodic pension benefit cost:


	December 31, 2021		December 31, 2020		December 31, 2019
Service cost	$	—	$	16	$	39
Interest cost	1,760		2,343		2,975
Expected return on plan assets	(4,246)		(4,086)		(4,414)
Amortization of prior service cost	87		87		87
Amortization of net loss	305		221		404

Net periodic pension benefit cost	$	(2,094)	$	(1,419)	$	(909)

Other changes in plan assets and benefit obligations recognized in other comprehensive income:


	December 31, 2021		December 31, 2020		December 31, 2019
Net periodic pension benefit cost	$	(2,094)	$	(1,419)	$	(909)
Net gain (loss)	9,460		(3,119)		4,552
Amortization of net loss	305		221		404
Amortization of prior service cost	87		87		87
Total recognized in other comprehensive income (loss)	9,852		(2,811)		5,043
Total recognized in net periodic pension benefit cost and other comprehensive income (loss)	$	11,946	$	(1,392)	$	5,952

Significant assumptions include:


	December 31, 2021		December 31, 2020		December 31, 2019
Weighted-average Assumptions Used to Determine Benefit Obligation:
Discount rate	2.70	%	2.30	%	3.20	%
Rate of compensation increase for accruing active participants	n/a		n/a		n/a
Weighted-average Assumptions Used to Determine Cost:
Discount rate	2.30	%	3.20	%	4.30	%
Expected return on plan assets	5.00	%	5.00	%	6.00	%
Rate of compensation increase for accruing active participants	n/a		n/a		n/a

At December 31, 2021 and 2020, the Corporation based its estimate of the expected long-term rate of return on analysis of the historical returns of the plans and current market information available. The plans’ investment strategies are to provide for preservation of capital with an emphasis on long-term growth without undue exposure to risk. The assets of the plans’ are invested in accordance with the plans’ Investment Policy Statement, subject to strict compliance with ERISA and any other applicable statutes.

The plans’ risk management practices include semi-annual evaluations of investment managers, including reviews of compliance with investment manager guidelines and restrictions; ability to exceed performance objectives; adherence to the investment philosophy and style; and ability to exceed the performance of other investment managers. The evaluations are reviewed by management with appropriate follow-up and actions taken, as deemed necessary. The Investment Policy Statement generally allows investments in cash and cash equivalents, real estate, fixed income debt securities and equity securities, and specifically prohibits investments in derivatives, options, futures, private placements, short selling, non-marketable securities and purchases of individual non-investment grade bonds.

At December 31, 2021, the maturities of the plans’ debt securities ranged from 40 days to 7.7 years, with a weighted average maturity of 3.5 years. At December 31, 2020, the maturities of the plans’ debt securities ranged from 15 days to 6.7 years, with a weighted average maturity of 3.7 years.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as of December 31, 2021. The minimum contribution required in 2022 will likely be zero, but the Corporation may decide to make a discretionary contribution during the year.


2022	$	5,720
2023	5,607
2024	5,366
2025	5,340
2026	5,265
After 2026	22,379
	$	49,677

Plan assets are re-balanced quarterly. At December 31, 2021 and 2020, plan assets by category are as follows:


	December 31, 2021				December 31, 2020
	Actual		Target		Actual		Target
Cash and cash equivalents	2.5	%	3.0	%	2.7	%	3.0	%
Equity securities	56.4		53.0		53.0		50.0
Debt securities	38.6		42.0		42.3		45.0
Alternative investments	2.5		2.0		2.0		2.0
	100.0	%	100.0	%	100.0	%	100.0	%

The Savings Plan, a Section 401(k) qualified defined contribution plan, was amended on March 1, 2005 to provide enhanced retirement benefits, including employer and matching contributions, for eligible employees of the Corporation and its subsidiaries. The Corporation matches employees’ contributions at the rate of 100 percent for the first 3 percent of base salary contributed by participants and 50 percent of the next 3 percent of base salary contributed by participants.

Beginning in 2005, employees who have completed 1000 hours of service and are an active employee on the last day of the year receive an additional retirement contribution after year-end. Employees hired after January 1, 2010 do not participate in the additional retirement contribution. Effective January 1, 2013, the additional retirement contribution was fixed at 2 percent. Full vesting occurs after five years of service. The Corporation’s expense for the Savings Plan, including the additional retirement contribution, was $5.2 million, $5.1 million and $4.6 million for 2021, 2020 and 2019, respectively.

The Corporation also maintains a post retirement benefit plan that provides health insurance benefits for a closed group of participants that came to the Corporation through the 2019 MBT acquisition. To be eligible for the post retirement plan, the participants must (1) have been hired by MBT prior to January 1, 2007, (2) be a full-time employee of the Corporation and employed by MBT prior to the acquisition, and (3) be at least 55 of age with 5 years of full-time service with MBT. The plan allowed retirees to be carried under the Corporation’s health insurance plan, generally from ages 55 to 65. The retirees' premiums are determined based on their retiree class (per historical MBT guidelines) and also determined by the plan type for which the retiree is enrolled. As of December 31, 2021, the obligation payable under the post retirement plan was $3.2 million. Post retirement plan expense totaled $62,000 and $126,000 for 2021 and 2020, respectively.

Pension Plan Assets

Following is a description of the valuation methodologies used for pension plan assets measured at fair value on a recurring basis, as well as the general classification of pension plan assets pursuant to the valuation hierarchy.

Where quoted market prices are available in an active market, plan assets are classified within Level 1 of the valuation hierarchy. Level 1 plan assets total $92.0 million and $85.0 million as of December 31, 2021 and 2020, respectively, and include cash and cash equivalents, common stocks, mutual funds and corporate bonds and notes. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of plan assets with similar characteristics or discounted cash flows. Level 2 plan assets total $2.6 million and $3.5 million as of December 31, 2021 and 2020, respectively, and include governmental agencies, taxable municipal bonds and notes, and certificates of deposit. In certain cases where Level 1 or Level 2 inputs are not available, plan assets are classified within Level 3 of the hierarchy. There are no assets classified within Level 3 of the hierarchy at December 31, 2021 and 2020.


			Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
December 31, 2021	Fair Value		(Level 1)		(Level 2)		(Level 3)
Cash & Cash Equivalents	$	2,346	$	2,346	$	—	$	—
Corporate Bonds and Notes	15,726		15,726		—		—
Government Agency and Municipal Bonds and Notes	1,302		—		1,302		—
Certificates of Deposit	1,307		—		1,307		—
Party-in-Interest Investments
Common Stock	2,534		2,534		—		—


Mutual Funds
Taxable Bond	18,184		18,184		—		—
Large Cap Equity	28,349		28,349		—		—
Mid Cap Equity	13,033		13,033		—		—
Small Cap Equity	5,815		5,815		—		—
International Equity	3,602		3,602		—		—
Specialty Alternative Equity	2,390		2,390		—		—
	$	94,588	$	91,979	$	2,609	$	—


			Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
December 31, 2020	Fair Value		(Level 1)		(Level 2)		(Level 3)
Cash & Cash Equivalents	$	2,361	$	2,361	$	—	$	—
Corporate Bonds and Notes	16,330		16,330		—		—
Government Agency and Municipal Bonds and Notes	2,462		—		2,462		—
Certificates of Deposit	1,043		—		1,043		—
Party-in-Interest Investments
Common Stock	2,263		2,263		—		—


Mutual Funds
Taxable Bond	17,676		17,676		—		—
Large Cap Equity	25,117		25,117		—		—
Mid Cap Equity	10,731		10,731		—		—
Small Cap Equity	4,867		4,867		—		—
International Equity	3,912		3,912		—		—
Specialty Alternative Equity	1,750		1,750		—		—
	$	88,512	$	85,007	$	3,505	$	—

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Income Tax

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Tax

INCOME TAX

The reconciliation between income tax expense expected at the U.S. federal statutory tax rate and the reported income tax expense is summarized in the following table for years ended December 31, 2021, 2020 and 2019:


	2021			2020			2019
Reconciliation of Federal Statutory to Actual Tax Expense:
Federal Statutory Income Tax at 21%	$	50,566		$	35,695		$	40,695
Tax-exempt Interest Income	(16,200)			(13,273)			(10,124)

Stock Compensation	(20)			338			(459)
Earnings on Life Insurance	(1,468)			(1,079)			(953)
Tax Credits	(354)			(425)			(263)
CARES Act - NOL carryback rate differential	—			(1,178)			—
State Tax	2,697			1,122			600
Other	38			175			(171)
Income Tax Expense	$	35,259		$	21,375		$	29,325

Effective Tax Rate	14.6		%	12.6		%	15.1		%

Income tax expense consists of the following components for the years ended December 31, 2021, 2020, 2019:


	2021		2020		2019
Income Tax Expense for the Year Ended December 31:
Currently Payable:
Federal	$	24,634	$	28,463	$	23,938
State	1,473		2,647		422
Deferred:
Federal	7,211		(8,508)		4,726

State	1,941		(1,227)		239
Income Tax Expense	$	35,259	$	21,375	$	29,325

Significant components of the net deferred tax assets and liabilities resulting from temporary differences were as follows at December 31, 2021 and 2020:


	2021		2020
Deferred Tax Asset at December 31:
Assets:
Differences in Accounting for Loan Losses	$	52,995	$	31,850
Differences in Accounting for Loan Fees	2,016		4,328

Deferred Compensation	4,172		4,038

Federal & State Income Tax Loss Carryforward and Credits	747		2,089

Other	3,585		3,185
Total Assets	63,515		45,490
Liabilities:
Differences in Depreciation Methods	5,726		6,028
Differences in Accounting for Loans and Securities	3,078		2,840
Difference in Accounting for Pensions and Other Employee Benefits	4,586		1,258
State Income Tax	1,499		1,059
Net Unrealized Gain on Securities Available for Sale	15,889		23,389
Gain on FDIC Modified Whole Bank Transaction	306		359
Other	8,108		6,209
Total Liabilities	39,192		41,142
Net Deferred Tax Asset	$	24,323	$	4,348

As of December 31, 2021, the Corporation has approximately $15.2 million of state NOL carryforwards available to offset future state taxable income, which will expire beginning in 2023. These NOL carryforwards along with normal timing differences between book and tax result in total state deferred tax assets of $7.1 million. Management believes it is more likely than not that the benefit of these state NOL carryforwards and other state deferred tax assets will be fully realized.

The Corporation has additional paid-in capital that is considered restricted resulting from the acquisitions of CFS and Ameriana of approximately $13.4 million and $11.9 million, respectively. CFS and Ameriana qualified as banks under provisions of the Internal Revenue Code which permitted them to deduct from taxable income an allowance for bad debts which differed from the provision for losses charged to income. No provision for income taxes had been provided. If in the future this portion of additional paid-in capital is distributed, or the Corporation no longer qualifies as a bank for income tax purposes, income taxes may be imposed at the then applicable tax rates. The unrecorded deferred tax liability at December 31, 2021, would have been approximately $5.3 million.

The Corporation or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Corporation is generally no longer subject to U.S. federal, state and local income tax examinations by tax authorities for tax years before 2018.

Additional details regarding the Corporation's policies related to income taxes are discussed in NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES of these Notes to Consolidated Financial Statements.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

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-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Net Income Per Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Net Income Per Share

NET INCOME PER SHARE

Basic net income per share is computed by dividing net income by the weighted-average shares outstanding during the reporting period. Diluted net income per share is computed by dividing net income by the combination of the weighted-average shares outstanding during the reporting period and all potentially dilutive common shares. Potentially dilutive common shares include stock options and RSAs issued under the Corporation's share-based compensation plans. Potentially dilutive common shares are excluded from the computation of diluted earnings per share in the periods where the effect would be antidilutive.

The following table reconciles basic and diluted net income per share for the years indicated:


	2021					2020					2019
			Weighted-Average Shares					Weighted-Average Shares					Weighted-Average Shares
Basic net income per share:

Net income available to common stockholders	$	205,531	53,783,632	$	3.82	$	148,600	54,058,471	$	2.75	$	164,460	51,412,133	$	3.20
Effect of dilutive stock options and restricted stock awards			200,597					161,913					149,105
Diluted net income per share:
Net income available to common stockholders	$	205,531	53,984,229	$	3.81	$	148,600	54,220,384	$	2.74	$	164,460	51,561,238	$	3.19

As of December 31, 2021, 2020 and 2019, there were no stock options with an option price greater than the average market price of the common shares.

Condensed Financial Information (parent company only)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information (parent company only)

CONDENSED FINANCIAL INFORMATION (parent company only)

Presented below is condensed financial information as to financial position, results of operations, and cash flows of the Corporation.

Condensed Balance Sheets


	December 31, 2021		December 31, 2020
Assets
Cash and cash equivalents	$	127,501	$	59,848
Investment in subsidiaries	1,900,787		1,930,852

Premises and equipment	274		195
Interest receivable	2		2
Goodwill	448		448
Cash surrender value of life insurance	716		861

Other assets	10,281		12,211
Total assets	$	2,040,009	$	2,004,417
Liabilities
Subordinated debentures and term loans	$	118,618	$	118,380
Interest payable	864		860
Other liabilities	7,956		9,532
Total liabilities	127,438		128,772
Stockholders' equity	1,912,571		1,875,645
Total liabilities and stockholders' equity	$	2,040,009	$	2,004,417

Condensed Statements of Income and Comprehensive Income


	December 31, 2021		December 31, 2020		December 31, 2019
Income
Dividends from subsidiaries	$	161,825	$	70,100	$	125,775




Other income	(50)		(62)		172
Total income	161,775		70,038		125,947
Expenses
Interest expense	6,642		6,777		8,309
Salaries and employee benefits	3,917		3,426		3,540
Net occupancy and equipment expenses	825		745		802
Other outside services	1,001		731		1,889
Professional services	263		218		303
Other expenses	1,687		1,266		1,587
Total expenses	14,335		13,163		16,430
Income before income tax benefit and equity in undistributed income of subsidiaries	147,440		56,875		109,517
Income tax benefit	2,929		2,260		3,575
Income before equity in undistributed income of subsidiaries	150,369		59,135		113,092
Equity in undistributed income of subsidiaries	55,162		89,465		51,368
Net income available to common stockholders	$	205,531	$	148,600	$	164,460

Net income	$	205,531	$	148,600	$	164,460
Other comprehensive income (loss)	(19,723)		46,962		49,296
Comprehensive income	$	185,808	$	195,562	$	213,756

Condensed Statements of Cash Flows


	December 31, 2021		December 31, 2020		December 31, 2019
Cash Flow From Operating Activities:
Net income	$	205,531	$	148,600	$	164,460
Adjustments to reconcile net income to net cash provided by operating activities
Share-based compensation	1,563		1,502		1,339
Distributions in excess of (equity in undistributed) income of subsidiaries	(55,162)		(89,465)		(51,368)



Other adjustments	(1,173)		1,537		(6,013)
Investment in subsidiaries - operating activities	885		235		(268)
Net cash provided by operating activities	151,644		62,409		108,150
Cash Flow From Investing Activities:


Net cash received in acquisition	—		—		78


Net cash provided by investing activities	—		—		78
Cash Flow From Financing Activities:
Cash dividends	(61,230)		(56,542)		(51,276)

Repayment of borrowings	—		(20,310)		—



Stock issued under employee benefit plans	605		639		702
Stock issued under dividend reinvestment and stock purchase plan	1,880		1,726		1,531
Stock options exercised	198		115		144
Repurchases of common stock	(25,444)		(55,912)		(19,041)
Net cash used by financing activities	(83,991)		(130,284)		(67,940)
Net change in cash	67,653		(67,875)		40,288
Cash, beginning of the year	59,848		127,723		87,435
Cash, end of year	$	127,501	$	59,848	$	127,723

General Litigation	12 Months Ended
General Litigation	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
General Litigation	GENERAL LITIGATION The Corporation is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flow of the Corporation.

Nature of Operations and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Financial Statement Preparation

FINANCIAL STATEMENT PREPARATIONThe accounting and reporting policies of the Corporation and the Bank, conform to accounting principles generally accepted in the United States of America and reporting practices followed by the banking industry. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses and fair value of financial instruments.

Reclassifications

Reclassifications have been made to prior financial statements to conform to the current financial statement presentation.

Consolidation

CONSOLIDATIONThe consolidation of the Corporation's financial statements include the accounts of the Corporation and all its subsidiaries, after elimination of all material intercompany transactions.

Business Combinations

BUSINESS COMBINATIONS

Cash and Cash Equivalents

CASH AND CASH EQUIVALENTS

Interest-bearing Deposits

INTEREST-BEARING DEPOSITS

Investment Securities

INVESTMENT SECURITIESHeld to maturity securities are carried at amortized cost when the Corporation has the positive intent and ability to hold them until maturity. Available for sale securities are recorded at fair value on a recurring basis with the unrealized gains and losses, net of applicable income taxes, recorded in other comprehensive income (loss). Realized gains and losses are recorded in earnings and the prior fair value adjustments are reclassified within stockholders' equity. Gains and losses on sales of securities are determined on the specific-identification method. Amortization of premiums and accretion of discounts are amortized to their earliest call date and are recorded as interest income from securities. Details of the Corporation's investment securities portfolio are included in NOTE 4. INVESTMENT SECURITIES of these Notes to Consolidated Financial Statements.

Loans Held for Sale

LOANS HELD FOR SALE

Loans

LOANS

Purchased Credit Deteriorated ("PCD") Loans

PURCHASED CREDIT DETERIORATED ("PCD") LOANS

Allowance For Credit Losses

ALLOWANCE FOR CREDIT LOSSES ON INVESTMENT SECURITIES AVAILABLE FOR SALE

ALLOWANCE FOR CREDIT LOSSES ON INVESTMENT SECURITIES HELD TO MATURITY ("ACL - INVESTMENTS")

ALLOWANCE FOR CREDIT LOSSES - LOANS ("ACL - Loans")

ALLOWANCE FOR LOAN LOSSES (prior to January 1, 2021 CECL adoption)

Pension

PENSION

Premises and Equipment

PREMISES AND EQUIPMENT

Leases

LEASES

Federal Home Loan Bank Stock ("FHLB")

FEDERAL HOME LOAN BANK STOCK ("FHLB")

Intangible Assets

INTANGIBLE ASSETS

Goodwill

GOODWILL

Bank Owned Life Insurance ("BOLI")

BANK OWNED LIFE INSURANCE ("BOLI")BOLI policies have been purchased, as well as obtained through acquisitions, on certain current and former employees and directors of the Corporation to offset a portion of the employee benefit costs. The Corporation records the life insurance at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or amounts due that are probable at settlement. Changes in cash surrender values and death benefits received in excess of cash surrender values are reported in non-interest income. A corporate policy is in place with defined thresholds that limit the amount of credit, interest rate and liquidity risk inherent in a BOLI portfolio. The Corporation actively monitors the overall portfolio performance along with the credit quality of the insurance carriers and the credit quality and yield of the underlying investments.

Other Real Estate Owned ("OREO")

OTHER REAL ESTATE OWNED ("OREO")OREO consists of assets acquired through, or in lieu of, loan foreclosure and are held for sale. They are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation are included in other real estate owned and foreclosure expenses.

Derivative Instruments

DERIVATIVE INSTRUMENTS

Securities Sold Under Repurchase Agreements

SECURITIES SOLD UNDER REPURCHASE AGREEMENTS

Allowance For Credit Losses - Off-balance Sheet Credit Exposures

ALLOWANCE FOR CREDIT LOSSES - OFF-BALANCE SHEET CREDIT EXPOSURES

Revenue Recognition

REVENUE RECOGNITION

Transfers of Financial Assets

TRANSFERS OF FINANCIAL ASSETS

Share-Based Compensation

SHARE-BASED COMPENSATIONStock option and restricted stock award plans are maintained by the Corporation. The compensation costs are recognized for stock options and restricted stock awards issued to employees and directors based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options. The market price of the Corporation’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the appropriate service period, which is generally two to five years. Details of the Corporation's share-based compensation are included in NOTE 17. SHARE-BASED COMPENSATION of these Notes to Consolidated Financial Statements.

Income Tax

INCOME TAX

Net Income Per Share

NET INCOME PER SHARE

Recent Accounting Changes Adopted and New Accounting Pronouncements Not Yet Adopted

RECENT ACCOUNTING CHANGES ADOPTED IN 2021

FASB Accounting Standards Updates No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments


	December 31, 2020		Impact of CECL Adoption		January 1, 2021 Post-CECL Adoption
Assets:
Held to maturity securities	$	1,227,668	$	(245)	$	1,227,423
Loans	9,243,174		4,776		9,247,950
Allowance for credit losses - loans	(130,648)		(74,055)		(204,703)
Net loans	9,112,526		(69,279)		9,043,247
Tax asset, deferred and receivable	12,340		21,984		34,324

Liabilities:
Allowance for credit losses on unfunded loan commitments	—		20,500		20,500

Stockholder's Equity:
Retained Earnings	788,578		(68,040)		720,538
			—

FASB Accounting Standards Updates No. 2019-11 - Codification Improvements to (Topic 326): Financial Instruments - Credit Losses

FASB Accounting Standards Update No. 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

• Exception to the incremental approach for intraperiod tax allocation;

• Exceptions to accounting for basis differences when there are ownership changes in foreign investments; and

• Exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses.

The ASU also improved financial statement preparers’ application of income tax-related guidance and simplifies GAAP for:

• Franchise taxes that are partially based on income;

• Transactions with a government that result in a step up in the tax basis of goodwill

• Separate financial statements of legal entities that are not subject to tax; and

• Enacted changes in tax laws in interim periods.

NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED

FASB Accounting Standards Updates - No. 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

FASB Accounting Standards Updates - No. 2021-01 - Reference Rate Reform (Topic 848): Scope

FASB Accounting Standards Updates - No. 2021-08 - Business Combinations (Topic 805) - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

Nature of Operations and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Schedule of CECL Adoption Impacts

The following table details the impact of the adoption of CECL on the Corporation's balance sheet as of January 1, 2021.


	December 31, 2020		Impact of CECL Adoption		January 1, 2021 Post-CECL Adoption
Assets:
Held to maturity securities	$	1,227,668	$	(245)	$	1,227,423
Loans	9,243,174		4,776		9,247,950
Allowance for credit losses - loans	(130,648)		(74,055)		(204,703)
Net loans	9,112,526		(69,279)		9,043,247
Tax asset, deferred and receivable	12,340		21,984		34,324

Liabilities:
Allowance for credit losses on unfunded loan commitments	—		20,500		20,500

Stockholder's Equity:
Retained Earnings	788,578		(68,040)		720,538
			—

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of Preliminary Valuations of the Fair Value of Assets Acquired and Liabilities Assumed


	Fair Value
Cash and cash equivalents	$	292
Other assets	35
Other liabilities	(816)
Net tangible assets acquired	(489)
Customer relationship intangible	2,247
Goodwill	1,467
Purchase price	$	3,225

Investment Securities (Tables)

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Approximate Fair Value of Investment Securities


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale at December 31, 2021
U.S. Treasury	$	1,000	$	—	$	1	$	999
U.S. Government-sponsored agency securities	96,244		437		1,545		95,136
State and municipal	1,495,696		81,734		898		1,576,532
U.S. Government-sponsored mortgage-backed securities	671,684		7,109		11,188		667,605
Corporate obligations	4,031		256		8		4,279

Total available for sale	$	2,268,655	$	89,536	$	13,640	$	2,344,551


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale at December 31, 2020
U.S. Government-sponsored agency securities	$	43,437	$	1,571	$	—	$	45,008
State and municipal	1,168,711		89,420		246		1,257,885
U.S. Government-sponsored mortgage-backed securities	591,210		20,984		103		612,091
Corporate obligations	4,031		104		—		4,135

Total available for sale	$	1,807,389	$	112,079	$	349	$	1,919,119


	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held to maturity at December 31, 2021
U.S. Government-sponsored agency securities	$	371,457	$	—	$	371,457	$	226	$	7,268	$	364,415
State and municipal	1,057,301		245		1,057,056		29,593		2,170		1,084,724
U.S. Government-sponsored mortgage-backed securities	749,789		—		749,789		7,957		5,881		751,865
Foreign investment	1,500		—		1,500		—		1		1,499
Total held to maturity	$	2,180,047	$	245	$	2,179,802	$	37,776	$	15,320	$	2,202,503


	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held to maturity at December 31, 2020
U.S. Government-sponsored agency securities	$	145,398	$	—	$	145,398	$	347	$	220	$	145,525
State and municipal	619,927		—		619,927		34,978		32		654,873
U.S. Government-sponsored mortgage-backed securities	460,843		—		460,843		17,552		—		478,395
Foreign investment	1,500		—		1,500		—		—		1,500
Total held to maturity	$	1,227,668	$	—	$	1,227,668	$	52,877	$	252	$	1,280,293

Schedule of Amortized Cost of Investment Securities Held to Maturity Aggregated by Credit Quality Indicator


	Held to Maturity
	State and municipal		Other		Total
Credit Rating:
Aaa	$	90,290	$	60,579	$	150,869
Aa1	152,666		—		152,666
Aa2	175,755		—		175,755
Aa3	130,640		—		130,640
A1	88,281		—		88,281
A2	27,364		—		27,364
A3	10,108		—		10,108
Baa2	265		—		265
Non-rated	381,932		1,062,167		1,444,099
Total	$	1,057,301	$	1,122,746	$	2,180,047

Schedule of Allowance for Credit Losses on Investment Securities Held to Maturity

The following table details activity in the allowance for credit losses on investment securities held to maturity during the twelve months ended December 31, 2021.


	State and municipal
Allowance for Credit Losses:
Balance, December 31, 2020	$	—
Impact of adopting ASC 326	245
Provision for credit loss	—
Securities charged off	—
Recoveries on securities	—
Balance, December 31, 2021	$	245

Schedule of Investment Securities in a Continuous Unrealized Loss Position


	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Investment securities available for sale at December 31, 2021
U.S. Treasury	$	999	$	1	$	—	$	—	$	999	$	1
U.S. Government-sponsored agency securities	68,524		1,545		—		—		68,524		1,545
State and municipal	138,187		894		505		4		138,692		898
U.S. Government-sponsored mortgage-backed securities	427,687		10,791		8,324		397		436,011		11,188
Corporate obligations	992		8		—		—		992		8
Total investment securities available for sale	$	636,389	$	13,239	$	8,829	$	401	$	645,218	$	13,640


	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Investment securities available for sale at December 31, 2020

State and municipal	$	5,368	$	246	$	—	$	—	$	5,368	$	246
U.S. Government-sponsored mortgage-backed securities	9,651		103		—		—		9,651		103

Total investment securities available for sale	$	15,019	$	349	$	—	$	—	$	15,019	$	349


	Gross Unrealized Losses		Number of Securities
Investment securities available for sale at December 31, 2021
U.S. Treasury	$	1	1
U.S. Government-sponsored agency securities	1,545		8
State and municipal	898		103
U.S. Government-sponsored mortgage-backed securities	11,188		48
Corporate obligations	8		1
Total investment securities available for sale	13,640		161


	Gross Unrealized Losses		Number of Securities
Investment securities available for sale at December 31, 2020


State and municipal	$	246	4
U.S. Government-sponsored mortgage-backed securities	$	103	5

Total investment securities available for sale	$	349	9

Schedule of Investments in Debt and Equity Securities Reported in the Financial Statements at an Amount Less Than Their Historical Cost

Certain investment securities available for sale are reported in the financial statements at an amount less than their historical cost as indicated in the table below.


	December 31, 2021			December 31, 2020
Investments available for sale reported at less than historical cost:
Historical cost	$	658,858		$	15,368
Fair value	645,218			15,019
Gross unrealized losses	$	13,640		$	349
Percent of the Corporation's investments available for sale	27.5		%	0.8		%

Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity


	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturity Distribution at December 31, 2021
Due in one year or less	$	6,954	$	6,965	$	6,971	$	6,995
Due after one through five years	5,097		5,309		30,272		31,946
Due after five through ten years	120,460		126,816		177,203		180,129
Due after ten years	1,464,460		1,537,856		1,215,812		1,231,568
	1,596,971		1,676,946		1,430,258		1,450,638
U.S. Government-sponsored mortgage-backed securities	671,684		667,605		749,789		751,865


Total Investment Securities	$	2,268,655	$	2,344,551	$	2,180,047	$	2,202,503

Schedule of Gross Gains on Sales and Redemptions of Available for Sale Securities

Gross gains and losses on the sales and redemptions of available for sale securities for the years indicated are shown below.


	2021		2020		2019
Sales and Redemptions of Available for Sale Securities:
Gross gains	$	6,502	$	12,097	$	4,415
Gross losses	828		202		—

Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Schedule of Composition of Loan Portfolio by Loan Class

The following table illustrates the composition of the Corporation’s loan portfolio by loan class for the periods indicated:


	December 31, 2021		December 31, 2020

Commercial and industrial loans	$	2,714,565	$	2,776,699
Agricultural land, production and other loans to farmers	246,442		281,884
Real estate loans:
Construction	523,066		484,723
Commercial real estate, non-owner occupied	2,135,459		2,220,949
Commercial real estate, owner occupied	986,720		958,501
Residential	1,159,127		1,234,741
Home equity	523,754		508,259
Individuals' loans for household and other personal expenditures	146,092		129,479
Public finance and other commercial loans	806,636		647,939
Loans	$	9,241,861	$	9,243,174

Schedule of Credit Quality of Loan Portfolio by Loan Class


	Term Loans (amortized cost basis by origination year)
	2021		2020		2019		2018		2017		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
Commercial and industrial loans
Pass	$	1,019,757	$	362,372	$	144,520	$	65,165	$	21,575	$	30,420	$	990,335	$	—	$	2,634,144
Special Mention	10,559		11,088		190		730		1,930		1,825		15,026		—		41,348
Substandard	2,811		2,127		7,432		2,932		431		747		22,593		—		39,073


Total Commercial and industrial loans	1,033,127		375,587		152,142		68,827		23,936		32,992		1,027,954		—		2,714,565
Agricultural land, production and other loans to farmers
Pass	50,251		45,164		22,195		7,689		6,153		36,074		74,871		—		242,397
Special Mention	—		1,543		—		—		—		252		264		—		2,059
Substandard	524		506		108		371		—		27		450		—		1,986


Total Agricultural land, production and other loans to farmers	50,775		47,213		22,303		8,060		6,153		36,353		75,585		—		246,442
Real estate loans:
Construction
Pass	215,167		200,169		63,589		979		1,762		2,453		17,201		—		501,320
Special Mention	20,737		270		—		—		—		46		—		—		21,053
Substandard	—		693		—		—		—		—		—		—		693


Total Construction	235,904		201,132		63,589		979		1,762		2,499		17,201		—		523,066
Commercial real estate, non-owner occupied
Pass	589,296		688,406		227,332		111,971		103,400		126,837		26,779		—		1,874,021
Special Mention	68,279		149,480		—		—		—		1,723		—		—		219,482
Substandard	19,314		14,912		178		1,118		6,156		278		—		—		41,956


Total Commercial real estate, non-owner occupied	676,889		852,798		227,510		113,089		109,556		128,838		26,779		—		2,135,459
Commercial real estate, owner occupied
Pass	299,186		392,383		92,338		43,252		46,044		48,571		33,998		—		955,772
Special Mention	5,665		5,953		738		1,532		902		1,301		149		—		16,240
Substandard	7,025		5,763		—		53		113		1,754		—		—		14,708


Total Commercial real estate, owner occupied	311,876		404,099		93,076		44,837		47,059		51,626		34,147		—		986,720
Residential
Pass	349,726		353,691		103,028		69,745		55,240		210,669		2,955		73		1,145,127
Special Mention	1,034		1,394		1,456		306		172		2,106		—		—		6,468
Substandard	1,004		1,575		335		1,248		108		3,257		—		5		7,532


Total Residential	351,764		356,660		104,819		71,299		55,520		216,032		2,955		78		1,159,127
Home equity
Pass	63,845		17,556		1,977		2,127		1,250		3,432		427,437		194		517,818
Special Mention	—		85		48		—		—		24		3,451		—		3,608
Substandard	520		—		—		8		91		70		1,639		—		2,328


Total Home Equity	64,365		17,641		2,025		2,135		1,341		3,526		432,527		194		523,754
Individuals' loans for household and other personal expenditures
Pass	67,749		23,452		11,893		11,197		2,008		4,928		24,406		—		145,633
Special Mention	79		85		50		33		20		58		134		—		459
Substandard	—		—		—		—		—		—		—		—		—


Total Individuals' loans for household and other personal expenditures	67,828		23,537		11,943		11,230		2,028		4,986		24,540		—		146,092
Public finance and other commercial loans
Pass	231,319		178,316		100,679		39,098		105,964		128,942		22,318		—		806,636




Total Public finance and other commercial loans	231,319		178,316		100,679		39,098		105,964		128,942		22,318		—		806,636
Loans	$	3,023,847	$	2,456,983	$	778,086	$	359,554	$	353,319	$	605,794	$	1,664,006	$	272	$	9,241,861


	December 31, 2020
	Commercial Pass		Commercial Special Mention		Commercial Substandard		Commercial Doubtful		Commercial Loss		Consumer Performing		Consumer Non-Performing		Total
Commercial and industrial loans	$	2,562,077	$	117,503	$	97,119	$	—	$	—	$	—	$	—	$	2,776,699
Agricultural land, production and other loans to farmers	243,991		26,835		9,885		—		—		1,173		—		281,884
Real estate loans:
Construction	446,846		10,445		5,549		—		—		21,763		120		484,723
Commercial real estate, non-owner occupied	1,979,827		160,304		80,818		—		—		—		—		2,220,949
Commercial real estate, owner occupied	907,566		17,641		33,294		—		—		—		—		958,501
Residential	199,338		2,261		7,058		—		—		1,020,687		5,397		1,234,741
Home equity	12,714		—		989		—		—		492,999		1,557		508,259
Individuals' loans for household and other personal expenditures	—		—		—		—		—		129,440		39		129,479

Public finance and other commercial loans	647,939		—		—		—		—		—		—		647,939
Loans	$	7,000,298	$	334,989	$	234,712	$	—	$	—	$	1,666,062	$	7,113	$	9,243,174

The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses:


	December 31, 2021
	Commercial Real Estate		Residential Real Estate		Other		Total		Allowance on Collateral Dependent Loans
Commercial and industrial loans	$	—	$	—	$	8,075	$	8,075	$	2,672
Agricultural land, production and other loans to farmers	524		—		251		775		—
Real estate loans:
Construction	—		685		—		685		82
Commercial real estate, non-owner occupied	23,652		—		—		23,652		5,510
Commercial real estate, owner occupied	1,044		—		—		1,044		—
Residential	—		4,906		—		4,906		305
Home equity	—		394		—		394		64


Loans	$	25,220	$	5,985	$	8,326	$	39,531	$	8,633

Schedule of Past Due Aging of Loan Portfolio by Loan Class

The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, for the years indicated:


	December 31, 2021
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total		Loans > 90 Days or More Past Due And Accruing
Commercial and industrial loans	$	2,708,539	$	2,602	$	2,437	$	987	$	2,714,565	$	675
Agricultural land, production and other loans to farmers	246,380		36		—		26		246,442		—
Real estate loans:
Construction	522,349		717		—		—		523,066		—
Commercial real estate, non-owner occupied	2,124,853		3,327		—		7,279		2,135,459		—
Commercial real estate, owner occupied	985,785		643		—		292		986,720		—
Residential	1,148,294		3,979		4,255		2,599		1,159,127		—
Home equity	518,643		3,327		281		1,503		523,754		288
Individuals' loans for household and other personal expenditures	145,634		375		83		—		146,092		—

Public finance and other commercial loans	806,636		—		—		—		806,636		—
Loans	$	9,207,113	$	15,006	$	7,056	$	12,686	$	9,241,861	$	963


	December 31, 2020
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total		Loans > 90 Days or More Past Due And Accruing
Commercial and industrial loans	$	2,761,473	$	5,866	$	6,571	$	2,789	$	2,776,699	$	594
Agricultural land, production and other loans to farmers	280,615		146		226		897		281,884		—
Real estate loans:
Construction	484,706		—		17		—		484,723		—
Commercial real estate, non-owner occupied	2,184,681		2,525		2,109		31,634		2,220,949		—
Commercial real estate, owner occupied	951,561		4,854		180		1,906		958,501		—
Residential	1,226,779		3,269		1,429		3,264		1,234,741		133
Home equity	503,596		2,644		559		1,460		508,259		19
Individuals' loans for household and other personal expenditures	129,049		334		96		—		129,479		—

Public finance and other commercial loans	647,939		—		—		—		647,939		—
Loans	$	9,170,399	$	19,638	$	11,187	$	41,950	$	9,243,174	$	746

Schedule of Non-Accrual Loans by Loan class

The following table summarizes the Corporation’s non-accrual loans by loan class for the periods indicated:


	December 31, 2021				December 31, 2020
	Non-Accrual Loans		Non-Accrual Loans with no Allowance for Credit Losses		Non-Accrual Loans
Commercial and industrial loans	$	7,598	$	263	$	2,329
Agricultural land, production and other loans to farmers	631		524		1,012
Real estate loans:
Construction	685		—		123
Commercial real estate, non-owner occupied	23,029		6,133		46,316
Commercial real estate, owner occupied	411		—		3,040
Residential	9,153		2,160		6,517
Home equity	1,552		—		2,095
Individuals' loans for household and other personal expenditures	3		—		39

Loans	$	43,062	$	9,080	$	61,471

Schedule of Troubled Debt Restructuring

The following tables summarize troubled debt restructures in the Corporation's loan portfolio that occurred during the twelve months ended December 31, 2021 and 2020, respectively.


	Twelve Months Ended December 31, 2021
	Pre- Modification Recorded Balance		Term Modification		Rate Modification		Combination		Post - Modification Recorded Balance		Number of Loans
Commercial and industrial loans	$	348	$	348	$	—	$	—	$	348	2
Real estate loans:
Construction	16		—		16		—		16		1
Commercial real estate, non owner occupied	12,922		12,976		—		—		12,976		1
Commercial real estate, owner occupied	51		29		—		21		50		2
Residential	691		449		126		118		693		9


Total	$	14,028	$	13,802	$	142	$	139	$	14,083	15



	Twelve Months Ended December 31, 2020
	Pre- Modification Recorded Balance		Term Modification		Rate Modification		Combination		Post - Modification Recorded Balance		Number of Loans
Commercial and industrial loans	$	654	$	654	$	—	$	—	$	654	3
Agricultural land, production and other loans to farmers	458		458		—		—		458		1
Real estate loans:
Construction	113		—		—		123		123		1

Commercial real estate, owner occupied	107		107		—		—		107		1
Residential	2,730		2,393		163		224		2,780		38
Home Equity	332		237		95		—		332		3
Individuals' loans for household and other personal expenditures	19		19		—		—		19		2
Total	$	4,413	$	3,868	$	258	$	347	$	4,473	49


	Twelve Months Ended December 31, 2021
	Number of Loans	Recorded Balance

Real estate loans:

Residential	5	$	475


Total	5	$	475


	Twelve Months Ended December 31, 2020
	Number of Loans	Recorded Balance
Commercial and industrial loans	2	$	585
Real estate loans:

Residential	8	610
Home equity	1	93

Total	11	$	1,288

Schedule of Changes in Allowance for Loan Losses

The following tables summarize changes in the allowance for credit losses by loan segment for the twelve months ended December 31, 2021:


	Twelve Months Ended December 31, 2021
	Commercial		Commercial Real Estate		Construction		Consumer		Residential		Consumer & Residential		Total
Allowance for credit losses
Balances, December 31, 2020	$	47,115	$	51,070	$	—	$	9,648	$	22,815	$	—	$	130,648
Credit risk reclassifications	—		(10,284)		10,284		(9,648)		(22,815)		32,463		—
Balances, December 31, 2020 after reclassifications	47,115		40,786		10,284		—		—		32,463		130,648
Impact of adopting ASC 326	20,024		34,925		8,805		—		—		10,301		74,055
Balances, January 1, 2021 Post-ASC 326 adoption	67,139		75,711		19,089		—		—		42,764		204,703
Provision for credit losses	7,921		(11,093)		1,122		—		—		2,050		—

Recoveries on loans	724		580		1		—		—		1,273		2,578
Loans charged off	(5,849)		(4,533)		(6)		—		—		(1,496)		(11,884)
Balances, December 31, 2021	$	69,935	$	60,665	$	20,206	$	—	$	—	$	44,591	$	195,397

Allowance for Loan Losses under prior GAAP ("Incurred Loss Model")

The following tables summarize changes in the allowance for loan losses by loan segment for the twelve months ended December 31, 2020 and 2019:


	Twelve Months Ended December 31, 2020
	Commercial		Commercial Real Estate		Consumer		Residential		Total
Allowance for loan losses:
Balances, December 31, 2019	$	32,902	$	28,778	$	4,035	$	14,569	$	80,284
Provision for losses	21,930		22,174		5,996		8,573		58,673
Recoveries on loans	819		431		260		666		2,176
Loans charged off	(8,536)		(313)		(643)		(993)		(10,485)
Balances, December 31, 2020	$	47,115	$	51,070	$	9,648	$	22,815	$	130,648


	Twelve Months Ended December 31, 2019
	Commercial		Commercial Real Estate		Consumer		Residential		Total
Allowance for loan losses:
Balances, December 31, 2018	$	32,657	$	29,609	$	3,964	$	14,322	$	80,552
Provision for losses	733		1,555		239		273		2,800
Recoveries on loans	1,244		1,289		401		619		3,553
Loans charged off	(1,732)		(3,675)		(569)		(645)		(6,621)
Balances, December 31, 2019	$	32,902	$	28,778	$	4,035	$	14,569	$	80,284

Schedule of Allowance for Credit Losses and Loan Portfolio by Loan Segment

The table below shows the Corporation’s allowance for loan losses under the incurred loss model and loan portfolio by loan segment as of December 31, 2020.


	December 31, 2020
	Commercial		Commercial Real Estate		Consumer		Residential		Total
Allowance Balances:
Individually evaluated for impairment	$	223	$	12,246	$	—	$	432	$	12,901
Collectively evaluated for impairment	46,892		38,824		9,648		22,383		117,747

Total Allowance for Loan Losses	$	47,115	$	51,070	$	9,648	$	22,815	$	130,648
Loan Balances:
Individually evaluated for impairment	$	1,258	$	51,605	$	2	$	3,291	$	56,156
Collectively evaluated for impairment	3,505,863		3,805,808		129,477		1,739,709		9,180,857
Loans acquired with deteriorated credit quality	577		5,584		—		—		6,161
Loans	$	3,507,698	$	3,862,997	$	129,479	$	1,743,000	$	9,243,174

Schedule of Composition of Impaired Loans by Loan Class


	December 31, 2020
	Unpaid Principal Balance		Recorded Investment		Related Allowance
Impaired loans with no related allowance:
Commercial and industrial loans	$	1,059	$	991	$	—

Real estate Loans:
Commercial real estate, non-owner occupied	4,958		4,694		—
Commercial real estate, owner occupied	2,125		1,310		—
Residential	957		816		—

Individuals' loans for household and other personal expenditures	2		2		—

Total	$	9,101	$	7,813	$	—
Impaired loans with related allowance:
Commercial and industrial loans	$	268	$	268	$	223
Agricultural land, production and other loans to farmers	640		562		3
Real estate Loans:
Commercial real estate, non-owner occupied	44,016		43,715		11,686
Commercial real estate, owner occupied	2,061		1,323		557
Residential	2,041		2,014		352
Home equity	487		461		80


Total	$	49,513	$	48,343	$	12,901
Total Impaired Loans	$	58,614	$	56,156	$	12,901


	December 31, 2019
	Unpaid Principal Balance		Recorded Investment		Related Allowance
Impaired loans with no related allowance:
Commercial and industrial loans	$	320	$	320	$	—
Agricultural land, production and other loans to farmers	752		381		—
Real estate loans:
Construction	1,206		970		—
Commercial real estate, non-owner occupied	6,202		5,299		—
Commercial real estate, owner occupied	1,382		306		—
Residential	93		76		—




Total	$	9,955	$	7,352	$	—
Impaired loans with related allowance:

Agricultural land, production and other loans to farmers	588		585		107
Real estate loans:


Commercial real estate, owner occupied	2,060		1,324		124
Residential	2,070		2,044		383
Home equity	417		400		75
Individuals' loans for household and other personal expenditures	4		4		—


Total	$	5,139	$	4,357	$	689
Total Impaired Loans	$	15,094	$	11,709	$	689


	Twelve Months Ended December 31, 2020
	Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance:
Commercial and industrial loans	$	991	$	—

Real estate Loans:
Commercial real estate, non-owner occupied	4,850		145
Commercial real estate, owner occupied	1,429		—
Residential	840		3

Individuals' loans for household and other personal expenditures	3		—

Total	$	8,113	$	148
Impaired loans with related allowance:
Commercial and industrial loans	$	267	$	—
Agricultural land, production and other loans to farmers	589		—
Real estate Loans:
Commercial real estate, non-owner occupied	44,119		—
Commercial real estate, owner occupied	1,447		—
Residential	2,108		70
Home equity	473		14


Total	$	49,003	$	84
Total Impaired Loans	$	57,116	$	232


	Twelve Months Ended December 31, 2019
	Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance:
Commercial and industrial loans	$	320	$	—
Agricultural land, production and other loans to farmers	542		—
Real estate loans:
Construction	1,229		—
Commercial real estate, non-owner occupied	5,399		156
Commercial real estate, owner occupied	357		—
Residential	77		3




Total	$	7,924	$	159
Impaired loans with related allowance:

Agricultural land, production and other loans to farmers	585		—
Real estate loans:


Commercial real estate, owner occupied	1,324		—
Residential	2,083		63
Home equity	409		12
Individuals' loans for household and other personal expenditures	4		—


Total	$	4,405	$	75
Total Impaired Loans	$	12,329	$	234

Schedule of Financial Instruments with Off-balance Sheet Risk

Financial instruments with off-balance sheet risk were as follows:


	December 31, 2021		December 31, 2020
Amounts of commitments:
Loan commitments to extend credit	$	3,917,215	$	3,443,514
Standby letters of credit	$	34,613	$	29,555

Schedule of Allowance for Credit Losses, Off-balance Sheet

The following table details activity in the allowance for credit losses on off-balance sheet commitments:


	Twelve Months Ended December 31, 2021
Balances, January 1, 2021	$	20,500

Provision for credit losses	—
Balances, December 31, 2021	$	20,500

Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of Premises and Equipment

The following table summarizes the Corporation's premises and equipment as of December 31, 2021 and 2020:


	2021		2020
Cost at December 31:
Land	$	22,349	$	25,619
Buildings and Leasehold Improvements	160,410		163,588
Equipment	129,885		127,341
Total Cost	312,644		316,548
Accumulated Depreciation and Amortization	(206,989)		(205,486)
Net	$	105,655	$	111,062

Goodwill (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill


	2021		2020
Balance, January 1	$	543,918	$	543,918
Goodwill acquired	1,467		—


Balance, December 31	$	545,385	$	543,918

Other Intangibles (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Core Deposit and Other Intangibles

The carrying basis and accumulated amortization of recognized core deposit and other intangibles are noted below.


	2021		2020
Gross carrying amount	$	102,396	$	102,396

Other intangibles acquired	2,247		—

Accumulated amortization	(79,168)		(73,421)

Total core deposit and other intangibles	$	25,475	$	28,975

Schedule of Estimated Future Amortization Expense

Estimated future amortization expense is summarized as follows:


	Amortization Expense
2022	$	5,402
2023	5,145
2024	4,510
2025	3,754
2026	2,948
After 2026	3,716
	$	25,475

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Schedule of Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases is presented in the table below as of December 31, 2021 and 2020:


	2021			2020
Operating lease assets	$	17,818		$	18,247
Total lease assets	$	17,818		$	18,247

Operating lease liabilities	$	19,619		$	20,058
Total lease liabilities	$	19,619		$	20,058

Weighted average remaining lease term (years)
Operating leases	7.0			8.0
Weighted average discount rate
Operating leases	3.1		%	3.3		%

Schedule of Components of Lease Expense

The table below presents the components of lease expense for the years ended December 31, 2021, 2020, and 2019:


	2021		2020		2019
Lease Cost:
Operating lease cost	$	3,710	$	3,724	$	3,617
Short-term lease cost	345		247		204
Variable lease cost	980		842		948
Sublease income	$	(33)	$	(43)	$	(13)
Total lease cost	$	5,002	$	4,770	$	4,756

Schedule of Supplemental Cash Flow Information

Supplemental cash flow information related to leases is presented in the tables below.


Maturity of lease liabilities	Operating Leases
2022	$	3,954
2023	3,569
2024	3,464
2025	3,217
2026	1,945
2027 and after	5,913
Total lease payments	$	22,062
Less: Present value discount	2,443
Present value of lease liabilities	$	19,619


Other Information	Twelve Months Ended December 31, 2021		Twelve Months Ended December 31, 2020		Twelve Months Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	3,773	$	3,629	$	3,422
ROU assets obtained in exchange for new operating lease liabilities	$	2,700	$	1,601	$	23,529

Deposits (Tables)

12 Months Ended

Dec. 31, 2021

Statistical Disclosure for Banks [Abstract]

Schedule of Deposits

The composition of the deposit portfolio is included in the table below for the years indicated:


	December 31, 2021		December 31, 2020
Demand deposits	$	7,704,190	$	6,821,152
Savings deposits	4,334,802		3,661,713
Certificates and other time deposits of $100,000 or more	273,379		346,194
Other certificates and time deposits	389,752		459,168
Brokered deposits	30,454		73,383
Total deposits	$	12,732,577	$	11,361,610

Summary of Contractual Maturities of Time Deposits

At December 31, 2021, the contractual maturities of time deposits are summarized as follows:


	Certificates and Other Time Deposits
2022	$	548,203
2023	108,558
2024	15,506
2025	10,394
2026	9,662
After 2026	1,262
	$	693,585

Borrowings (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of Debt

The following table summarizes the Corporation's borrowings as of December 31, 2021 and 2020:


	December 31, 2021		December 31, 2020

Securities sold under repurchase agreements	$	181,577	$	177,102
Federal Home Loan Bank advances	334,055		389,430
Subordinated debentures and term loans	118,618		118,380
Total Borrowings	$	634,250	$	684,912

Schedule of Collateral Pledged for all Repurchase Agreements Accounted for as Secured Borrowings

The collateral pledged for all repurchase agreements that are accounted for as secured borrowings as of December 31, 2021 and 2020 were:


	December 31, 2021
	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater Than 90 Days		Total
U.S. Government-sponsored mortgage-backed securities	$	181,577	$	—	$	—	$	—	$	181,577


	December 31, 2020
	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater Than 90 Days		Total
U.S. Government-sponsored mortgage-backed securities	$	175,449	$	—	$	1,653	$	—	$	177,102

Schedule of Maturities of Long-term Debt

Contractual maturities of borrowings as of December 31, 2021, are as follows:


Maturities in Years Ending December 31:	Securities Sold Under Repurchase Agreements		Federal Home Loan Bank Advances		Subordinated Debentures and Term Loans
2022	$	181,577	$	75,097	$	—
2023	—		115,097		—
2024	—		10,097		—
2025	—		25,097		—
2026	—		97		—
After 2026	—		108,570		122,012
ASC 805 fair value adjustments at acquisition	—		—		(3,394)
	$	181,577	$	334,055	$	118,618

Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Financial Instruments and Classification on the Balance Sheet

The table below presents the fair value of the Corporation’s derivative financial instruments as well as their classification on the Balance Sheet as of December 31, 2021 and December 31, 2020.

Asset Derivatives

Liability Derivatives

December 31, 2021

December 31, 2020

December 31, 2021

December 31, 2020

Balance Sheet Location

Fair
Value

Balance Sheet Location

Fair
Value

Balance Sheet Location

Fair
Value

Balance Sheet Location

Fair
Value

Derivatives designated as hedging instruments:

Interest rate contracts

Other Assets

—

Other Assets

—

Other Liabilities

835

Other Liabilities

2,018

Derivatives not designated as hedging instruments:

Interest rate contracts

Other Assets

41,133

Other Assets

74,335

Other Liabilities

41,133

Other Liabilities

74,335

Amount of Gain (Loss) Recognized in Other Comprehensive Income

The amount of gain (loss) recognized in other comprehensive income is included in the table below for the periods indicated.


Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) For the Year Ended December 31,
Derivatives in Cash Flow Hedging Relationships	2021		2020
Interest rate products	$	138	$	(1,480)

Effect of Derivative Financial Instruments on the Income Statement

The tables below present the effect of the Corporation’s derivative financial instruments on the Income Statement for the years ended December 31, 2021, 2020 and 2019.


Derivatives Designated as Hedging Instruments under FASB ASC 815-10	Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion)	Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income (Effective Portion)
		2021		2020		2019
Interest rate contracts	Interest expense	$	(1,044)	$	(906)	$	(334)

Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements of Assets and Liabilities Recognized in the Balance Sheets Measured at Fair Value on Recurring Basis


			Fair Value Measurements Using:
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
December 31, 2021	Fair Value		(Level 1)		(Level 2)		(Level 3)
Available for sale securities:
U.S. Government-sponsored agency securities	$	95,136	$	—	$	95,136	$	—
U.S. Treasury	999		999		—		—
State and municipal	1,576,532		—		1,571,076		5,456
U.S. Government-sponsored mortgage-backed securities	667,605		—		667,601		4

Corporate obligations	4,279		—		4,248		31

Interest rate swap asset	41,133		—		41,133		—

Interest rate swap liability	41,968		—		41,968		—


			Fair Value Measurements Using:
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
December 31, 2020	Fair Value		(Level 1)		(Level 2)		(Level 3)
Available for sale securities:
U.S. Government-sponsored agency securities	$	2,430	$	—	$	2,430	$	—

State and municipal	1,257,885		—		1,255,441		2,444
U.S. Government-sponsored mortgage-backed securities	654,669		—		654,665		4

Corporate obligations	4,135		—		4,104		31

Interest rate swap asset	74,335		—		74,335		—

Interest rate swap liability	76,353		—		76,353		—

Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements Recognized in the Balance Sheets using Significant Unobservable Level 3 Inputs


	Available for Sale Securities
	For The Year Ended
	December 31, 2021		December 31, 2020
Beginning Balance	$	2,479	$	2,893


Included in other comprehensive income	227		16
Purchases, issuances, and settlements	3,241		—

Principal payments	(456)		(430)
Ending balance	$	5,491	$	2,479

Description of Valuation Methodologies Used for Instruments Measured at Fair Value on a Non-Recurring Basis and Recognized in the Balance Sheets


			Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets	Significant Other Observable Inputs	Significant Unobservable Inputs
December 31, 2021	Fair Value		(Level 1)	(Level 2)	(Level 3)
Collateral dependent loans	$	24,491	—	—	$	24,491
Other real estate owned	$	96	—	—	$	96


			Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets	Significant Other Observable Inputs	Significant Unobservable Inputs
December 31, 2020	Fair Value		(Level 1)	(Level 2)	(Level 3)
Collateral dependent loans	$	37,250	—	—	$	37,250
Other real estate owned	$	544	—	—	$	544

Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Other than Goodwill

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at December 31, 2021 and 2020.

December 31, 2021

Fair Value

Valuation Technique

Unobservable Inputs

Range (Weighted-Average)

State and municipal securities

5,456

Discounted cash flow

Maturity Call Date
US Muni BQ curve
Discount rate
Weighted-average coupon

1 month to 15 years

A- to BBB-

0.75% - 4%

3.7%

Corporate obligations and U.S. Government-sponsored mortgage backed securities

Discounted cash flow

Risk free rate
plus Premium for illiquidity
Weighted-average coupon

3 month LIBOR

plus 200bps

Collateral dependent loans

24,491

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability
Weighted-average discount by loan balance

0% - 10% 5.5%

Other real estate owned

Appraisals

Discount to reflect current market conditions
Weighted-average discount of other real estate owned balance

0% - 44% 43.5%

December 31, 2020

Fair Value

Valuation Technique

Unobservable Inputs

Range (Weighted-Average)

State and municipal securities

2,444

Discounted cash flow

Maturity Call Date
US Muni BQ curve
Discount rate
Weighted-average coupon

1 month to 15 years

A- to BBB-

1.5% - 4%

3.9%

Corporate obligations and U.S. Government-sponsored mortgage backed securities

Discounted cash flow

Risk free rate
plus Premium for illiquidity
Weighted-average coupon

3 month LIBOR

plus 200bps

Collateral dependent loans

37,250

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability
Weighted-average discount by loan balance

0% - 10% 6.0%

Other real estate owned

544

Appraisals

Discount to reflect current market conditions
Weighted-average discount of other real estate owned balance

0% - 30% 26.2%

Estimated Fair Values of Financial Instruments


	2021
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets at December 31:
Cash and cash equivalents	$	167,146	$	167,146	$	—	$	—
Interest-bearing deposits	474,154		474,154		—		—
Investment securities available for sale	2,344,551		999		2,338,061		5,491
Investment securities held to maturity	2,179,802		—		2,188,600		13,903
Loans held for sale	11,187		—		11,187		—
Loans	9,046,464		—		—		9,068,319
Federal Home Loan Bank stock	28,736		—		28,736		—
Interest rate swap asset	41,133		—		41,133		—
Interest receivable	57,187		—		57,187		—
Liabilities at December 31:
Deposits	$	12,732,577	$	12,038,992	$	690,089	$	—
Borrowings:

Securities sold under repurchase agreements	181,577		—		181,572		—
Federal Home Loan Bank advances	334,055		—		337,005		—
Subordinated debentures and term loans	118,618		—		107,892		—
Interest rate swap liability	41,968		—		41,968		—
Interest payable	2,762		—		2,762		—


	2020
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets at December 31:
Cash and cash equivalents	$	192,896	$	192,896	$	—	$	—
Interest-bearing deposits	392,305		392,305		—		—
Investment securities available for sale	1,919,119		—		1,916,640		2,479
Investment securities held to maturity	1,227,668		—		1,260,815		19,478
Loans held for sale	3,966		—		3,966		—
Loans	9,112,526		—		—		9,191,628
Federal Home Loan Bank stock	28,736		—		28,736		—
Interest rate swap asset	74,335		—		74,335		—
Interest receivable	53,948		—		53,948		—
Liabilities at December 31:
Deposits	$	11,361,610	$	10,482,865	$	878,257	$	—
Borrowings:

Securities sold under repurchase agreements	177,102		—		177,097		—
Federal Home Loan Bank advances	389,430		—		399,991		—
Subordinated debentures and term loans	118,380		—		108,439		—
Interest rate swap liability	76,353		—		76,353		—
Interest payable	3,287		—		3,287		—

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, as of December 31, 2021 and 2020:


	Accumulated Other Comprehensive Income (Loss)
	Unrealized Gains (Losses) on Securities Available for Sale		Unrealized Gains (Losses) on Cash Flow Hedges		Unrealized Gains (Losses) on Defined Benefit Plans		Total
Balance at December 31, 2020	$	87,988	$	(1,594)	$	(11,558)	$	74,836
Other comprehensive income before reclassifications	(23,732)		109		7,491		(16,132)
Amounts reclassified from accumulated other comprehensive income	(4,482)		825		66		(3,591)
Period change	(28,214)		934		7,557		(19,723)

Balance at December 31, 2021	$	59,774	$	(660)	$	(4,001)	$	55,113


Balance at December 31, 2019	$	38,872	$	(1,141)	$	(9,857)	$	27,874
Other comprehensive income before reclassifications	58,513		(1,169)		(1,767)		55,577
Amounts reclassified from accumulated other comprehensive income	(9,397)		716		66		(8,615)
Period change	49,116		(453)		(1,701)		46,962

Balance at December 31, 2020	$	87,988	$	(1,594)	$	(11,558)	$	74,836

Reclassification out of Accumulated Other Comprehensive Income (Loss)


	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Year Ended December 31,
Details about Accumulated Other Comprehensive Income (Loss) Components	2021		2020		2019		Affected Line Item in the Statements of Income
Unrealized gains (losses) on available for sale securities (1)
Realized securities gains reclassified into income	$	5,674	$	11,895	$	4,415	Other income - net realized gains on sales of available for sale securities
Related income tax benefit (expense)	(1,192)		(2,498)		(927)		Income tax expense
	$	4,482	$	9,397	$	3,488

Unrealized gains (losses) on cash flow hedges (2)
Interest rate contracts	$	(1,044)	$	(906)	$	(334)	Interest expense - subordinated debentures and term loans
Related income tax benefit (expense)	219		190		70		Income tax expense
	$	(825)	$	(716)	$	(264)

Unrealized gains (losses) on defined benefit plans
Amortization of net loss and prior service costs	$	(84)	$	(84)	$	(106)	Other expenses - salaries and employee benefits
Related income tax benefit (expense)	18		18		22		Income tax expense
	$	(66)	$	(66)	$	(84)

Total reclassifications for the period, net of tax	$	3,591	$	8,615	$	3,140

Regulatory Capital and Dividends (Tables)

12 Months Ended

Dec. 31, 2021

Banking and Thrift, Interest [Abstract]

Schedule of Actual and Required Capital Amounts and Ratios

The Corporation's and Bank's actual and required capital ratios as of December 31, 2021 and December 31, 2020 were as follows:


					Prompt Corrective Action Thresholds
	Actual				Basel III Minimum Capital Required				Well Capitalized
December 31, 2021	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total risk-based capital to risk-weighted assets
First Merchants Corporation	$	1,582,481	13.92	%	$	1,193,840	10.50	%	N/A		N/A
First Merchants Bank	1,453,358		12.74		1,197,515		10.50		$	1,140,490	10.00	%
Tier 1 capital to risk-weighted assets
First Merchants Corporation	$	1,374,240	12.09	%	$	966,442	8.50	%	N/A		N/A
First Merchants Bank	1,309,685		11.48		969,417		8.50		$	912,392	8.00	%
Common equity tier 1 capital to risk-weighted assets
First Merchants Corporation	$	1,327,634	11.68	%	$	795,893	7.00	%	N/A		N/A
First Merchants Bank	1,309,685		11.48		798,343		7.00		$	741,319	6.50	%
Tier 1 capital to average assets
First Merchants Corporation	$	1,374,240	9.30	%	$	590,758	4.00	%	N/A		N/A
First Merchants Bank	1,309,685		8.88		589,994		4.00		$	737,493	5.00	%


					Prompt Corrective Action Thresholds
	Actual				Basel III Minimum Capital Required				Well Capitalized
December 31, 2020	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total risk-based capital to risk-weighted assets
First Merchants Corporation	$	1,475,551	14.36	%	$	1,079,015	10.50	%	N/A		N/A
First Merchants Bank	1,412,805		13.70		1,082,430		10.50		$	1,030,886	10.00	%
Tier 1 capital to risk-weighted assets
First Merchants Corporation	$	1,282,070	12.48	%	$	873,488	8.50	%	N/A		N/A
First Merchants Bank	1,283,922		12.45		876,253		8.50		$	824,708	8.00	%
Common equity tier 1 capital to risk-weighted assets
First Merchants Corporation	$	1,235,702	12.02	%	$	719,343	7.00	%	N/A		N/A
First Merchants Bank	1,283,922		12.45		721,620		7.00		$	670,076	6.50	%
Tier 1 capital to average assets
First Merchants Corporation	$	1,282,070	9.57	%	$	536,123	4.00	%	N/A		N/A
First Merchants Bank	1,283,922		9.59		535,279		4.00		$	669,098	5.00	%

Loan Servicing (Tables)

12 Months Ended

Dec. 31, 2021

Banking and Thrift, Other Disclosures [Abstract]

Schedule Of Unpaid Balance Of Loan Service

The unpaid balances are as follows for December 31, 2021, 2020 and 2019. The amount of capitalized servicing assets is considered immaterial.


	2021		2020		2019
Mortgage loan portfolios serviced for:
Federal Home Loan Mortgage Corporation	$	765,547	$	514,539	$	354,393
Fannie Mae	60,839		69,072		82,922
Equity Bank	60,107		—		—
Federal Home Loan Bank	32,558		51,479		76,815
Chevy Chase Mortgage Company	85		134		164
Total	$	919,136	$	635,224	$	514,294

Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Components of Share Based Compensation Awards


	Years Ended December 31,
	2021		2020		2019
Stock and ESPP Options
Pre-tax compensation expense	$	155	$	96	$	101
Income tax benefit	(92)		(29)		(70)
Stock and ESPP option expense, net of income taxes	$	63	$	67	$	31
Restricted Stock Awards
Pre-tax compensation expense	$	4,607	$	4,504	$	4,014
Income tax benefit	(855)		(552)		(1,206)
Restricted stock awards expense, net of income taxes	$	3,752	$	3,952	$	2,808
Total Share-Based Compensation:
Pre-tax compensation expense	$	4,762	$	4,600	$	4,115
Income tax benefit	(947)		(581)		(1,276)
Total share-based compensation expense, net of income taxes	$	3,815	$	4,019	$	2,839

Stock Option Activity Under Stock Option Plans

Stock option activity under the Corporation's stock option plans, as of December 31, 2021, and changes during the year ended December 31, 2021, were as follows:


	Number of Shares	Weighted-Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value
Outstanding at January 1, 2021	45,800	$	15.00	—	$	—

Exercised	(17,300)	$	11.46	—	$	—

Outstanding December 31, 2021	28,500	$	17.14	1.50	$	705,330
Vested and Expected to Vest at December 31, 2021	28,500	$	17.14	1.50	$	705,330
Exercisable at December 31, 2021	28,500	$	17.14	1.50	$	705,330

Summary of Unvested RSAs Outstanding

The following table summarizes information on unvested RSAs outstanding as of December 31, 2021:


	Number of Shares	Weighted-Average Grant Date Fair Value
Unvested RSAs at January 1, 2021	357,883	$	36.30
Granted	153,936	$	42.49
Forfeited	(6,050)	$	35.59
Vested	(94,510)	$	48.27
Unvested RSAs at December 31, 2021	411,259	$	35.86

Pension and Other Post Retirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Schedule of Plans' Funded Status and Amounts Recognized in the Balance Sheets

The table below sets forth the plans’ funded status and amounts recognized in the consolidated balance sheets at December 31, using measurement dates of December 31, 2021 and 2020.


	2021		2020
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	80,786	$	76,770
Service cost	—		16
Interest cost	1,760		2,343
Actuarial (gain) loss	(2,919)		6,957
Benefits paid	(5,353)		(5,300)


Benefit obligation at end of year	$	74,274	$	80,786

Change in Plan Assets:
Fair value of plan assets at beginning of year	$	88,512	$	85,121
Actual return on plan assets	10,786		7,925
Employer contributions	643		766
Benefits paid	(5,353)		(5,300)

End of year	94,588		88,512
Funded status at end of year	$	20,314	$	7,726

Assets and Liabilities Recognized in the Balance Sheets:
Deferred tax asset	$	1,545	$	3,970
Assets	$	24,750	$	12,681
Liabilities	$	4,436	$	4,955

Schedule of Accumulated Benefit Obligation in Excess of Plan Assets


	December 31, 2021		December 31, 2020
Projected benefit obligation	$	4,436	$	4,955
Accumulated benefit obligation	$	4,436	$	4,955
Fair value of plan assets	$	—	$	—

Schedule of Net Periodic Pension Costs

The following table shows the components of net periodic pension benefit cost:


	December 31, 2021		December 31, 2020		December 31, 2019
Service cost	$	—	$	16	$	39
Interest cost	1,760		2,343		2,975
Expected return on plan assets	(4,246)		(4,086)		(4,414)
Amortization of prior service cost	87		87		87
Amortization of net loss	305		221		404

Net periodic pension benefit cost	$	(2,094)	$	(1,419)	$	(909)

Schedule of Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)

Other changes in plan assets and benefit obligations recognized in other comprehensive income:


	December 31, 2021		December 31, 2020		December 31, 2019
Net periodic pension benefit cost	$	(2,094)	$	(1,419)	$	(909)
Net gain (loss)	9,460		(3,119)		4,552
Amortization of net loss	305		221		404
Amortization of prior service cost	87		87		87
Total recognized in other comprehensive income (loss)	9,852		(2,811)		5,043
Total recognized in net periodic pension benefit cost and other comprehensive income (loss)	$	11,946	$	(1,392)	$	5,952

Schedule of Assumptions Used

Significant assumptions include:


	December 31, 2021		December 31, 2020		December 31, 2019
Weighted-average Assumptions Used to Determine Benefit Obligation:
Discount rate	2.70	%	2.30	%	3.20	%
Rate of compensation increase for accruing active participants	n/a		n/a		n/a
Weighted-average Assumptions Used to Determine Cost:
Discount rate	2.30	%	3.20	%	4.30	%
Expected return on plan assets	5.00	%	5.00	%	6.00	%
Rate of compensation increase for accruing active participants	n/a		n/a		n/a

Schedule of Expected Benefit Payments


2022	$	5,720
2023	5,607
2024	5,366
2025	5,340
2026	5,265
After 2026	22,379
	$	49,677

Schedule of Allocation of Plan Assets

Plan assets are re-balanced quarterly. At December 31, 2021 and 2020, plan assets by category are as follows:


	December 31, 2021				December 31, 2020
	Actual		Target		Actual		Target
Cash and cash equivalents	2.5	%	3.0	%	2.7	%	3.0	%
Equity securities	56.4		53.0		53.0		50.0
Debt securities	38.6		42.0		42.3		45.0
Alternative investments	2.5		2.0		2.0		2.0
	100.0	%	100.0	%	100.0	%	100.0	%


			Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
December 31, 2021	Fair Value		(Level 1)		(Level 2)		(Level 3)
Cash & Cash Equivalents	$	2,346	$	2,346	$	—	$	—
Corporate Bonds and Notes	15,726		15,726		—		—
Government Agency and Municipal Bonds and Notes	1,302		—		1,302		—
Certificates of Deposit	1,307		—		1,307		—
Party-in-Interest Investments
Common Stock	2,534		2,534		—		—


Mutual Funds
Taxable Bond	18,184		18,184		—		—
Large Cap Equity	28,349		28,349		—		—
Mid Cap Equity	13,033		13,033		—		—
Small Cap Equity	5,815		5,815		—		—
International Equity	3,602		3,602		—		—
Specialty Alternative Equity	2,390		2,390		—		—
	$	94,588	$	91,979	$	2,609	$	—


			Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
December 31, 2020	Fair Value		(Level 1)		(Level 2)		(Level 3)
Cash & Cash Equivalents	$	2,361	$	2,361	$	—	$	—
Corporate Bonds and Notes	16,330		16,330		—		—
Government Agency and Municipal Bonds and Notes	2,462		—		2,462		—
Certificates of Deposit	1,043		—		1,043		—
Party-in-Interest Investments
Common Stock	2,263		2,263		—		—


Mutual Funds
Taxable Bond	17,676		17,676		—		—
Large Cap Equity	25,117		25,117		—		—
Mid Cap Equity	10,731		10,731		—		—
Small Cap Equity	4,867		4,867		—		—
International Equity	3,912		3,912		—		—
Specialty Alternative Equity	1,750		1,750		—		—
	$	88,512	$	85,007	$	3,505	$	—

Income Tax (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Reconciliation of Federal Statutory to Actual Tax Expense


	2021			2020			2019
Reconciliation of Federal Statutory to Actual Tax Expense:
Federal Statutory Income Tax at 21%	$	50,566		$	35,695		$	40,695
Tax-exempt Interest Income	(16,200)			(13,273)			(10,124)

Stock Compensation	(20)			338			(459)
Earnings on Life Insurance	(1,468)			(1,079)			(953)
Tax Credits	(354)			(425)			(263)
CARES Act - NOL carryback rate differential	—			(1,178)			—
State Tax	2,697			1,122			600
Other	38			175			(171)
Income Tax Expense	$	35,259		$	21,375		$	29,325

Effective Tax Rate	14.6		%	12.6		%	15.1		%

Components of Income Tax Expense (Benefit)

Income tax expense consists of the following components for the years ended December 31, 2021, 2020, 2019:


	2021		2020		2019
Income Tax Expense for the Year Ended December 31:
Currently Payable:
Federal	$	24,634	$	28,463	$	23,938
State	1,473		2,647		422
Deferred:
Federal	7,211		(8,508)		4,726

State	1,941		(1,227)		239
Income Tax Expense	$	35,259	$	21,375	$	29,325

Deferred Tax Assets and Liabilities

Significant components of the net deferred tax assets and liabilities resulting from temporary differences were as follows at December 31, 2021 and 2020:


	2021		2020
Deferred Tax Asset at December 31:
Assets:
Differences in Accounting for Loan Losses	$	52,995	$	31,850
Differences in Accounting for Loan Fees	2,016		4,328

Deferred Compensation	4,172		4,038

Federal & State Income Tax Loss Carryforward and Credits	747		2,089

Other	3,585		3,185
Total Assets	63,515		45,490
Liabilities:
Differences in Depreciation Methods	5,726		6,028
Differences in Accounting for Loans and Securities	3,078		2,840
Difference in Accounting for Pensions and Other Employee Benefits	4,586		1,258
State Income Tax	1,499		1,059
Net Unrealized Gain on Securities Available for Sale	15,889		23,389
Gain on FDIC Modified Whole Bank Transaction	306		359
Other	8,108		6,209
Total Liabilities	39,192		41,142
Net Deferred Tax Asset	$	24,323	$	4,348

Net Income Per Share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Reconciliation of Basic and Diluted Net Income Per Share

The following table reconciles basic and diluted net income per share for the years indicated:


	2021					2020					2019
			Weighted-Average Shares					Weighted-Average Shares					Weighted-Average Shares
Basic net income per share:

Net income available to common stockholders	$	205,531	53,783,632	$	3.82	$	148,600	54,058,471	$	2.75	$	164,460	51,412,133	$	3.20
Effect of dilutive stock options and restricted stock awards			200,597					161,913					149,105
Diluted net income per share:
Net income available to common stockholders	$	205,531	53,984,229	$	3.81	$	148,600	54,220,384	$	2.74	$	164,460	51,561,238	$	3.19

Condensed Financial Information (parent company only) (Tables)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Condensed Balance Sheets


	December 31, 2021		December 31, 2020
Assets
Cash and cash equivalents	$	127,501	$	59,848
Investment in subsidiaries	1,900,787		1,930,852

Premises and equipment	274		195
Interest receivable	2		2
Goodwill	448		448
Cash surrender value of life insurance	716		861

Other assets	10,281		12,211
Total assets	$	2,040,009	$	2,004,417
Liabilities
Subordinated debentures and term loans	$	118,618	$	118,380
Interest payable	864		860
Other liabilities	7,956		9,532
Total liabilities	127,438		128,772
Stockholders' equity	1,912,571		1,875,645
Total liabilities and stockholders' equity	$	2,040,009	$	2,004,417

Condensed Statements of Income and Comprehensive Income


	December 31, 2021		December 31, 2020		December 31, 2019
Income
Dividends from subsidiaries	$	161,825	$	70,100	$	125,775




Other income	(50)		(62)		172
Total income	161,775		70,038		125,947
Expenses
Interest expense	6,642		6,777		8,309
Salaries and employee benefits	3,917		3,426		3,540
Net occupancy and equipment expenses	825		745		802
Other outside services	1,001		731		1,889
Professional services	263		218		303
Other expenses	1,687		1,266		1,587
Total expenses	14,335		13,163		16,430
Income before income tax benefit and equity in undistributed income of subsidiaries	147,440		56,875		109,517
Income tax benefit	2,929		2,260		3,575
Income before equity in undistributed income of subsidiaries	150,369		59,135		113,092
Equity in undistributed income of subsidiaries	55,162		89,465		51,368
Net income available to common stockholders	$	205,531	$	148,600	$	164,460

Net income	$	205,531	$	148,600	$	164,460
Other comprehensive income (loss)	(19,723)		46,962		49,296
Comprehensive income	$	185,808	$	195,562	$	213,756

Condensed Statement of Cash Flows

Condensed Statements of Cash Flows


	December 31, 2021		December 31, 2020		December 31, 2019
Cash Flow From Operating Activities:
Net income	$	205,531	$	148,600	$	164,460
Adjustments to reconcile net income to net cash provided by operating activities
Share-based compensation	1,563		1,502		1,339
Distributions in excess of (equity in undistributed) income of subsidiaries	(55,162)		(89,465)		(51,368)



Other adjustments	(1,173)		1,537		(6,013)
Investment in subsidiaries - operating activities	885		235		(268)
Net cash provided by operating activities	151,644		62,409		108,150
Cash Flow From Investing Activities:


Net cash received in acquisition	—		—		78


Net cash provided by investing activities	—		—		78
Cash Flow From Financing Activities:
Cash dividends	(61,230)		(56,542)		(51,276)

Repayment of borrowings	—		(20,310)		—



Stock issued under employee benefit plans	605		639		702
Stock issued under dividend reinvestment and stock purchase plan	1,880		1,726		1,531
Stock options exercised	198		115		144
Repurchases of common stock	(25,444)		(55,912)		(19,041)
Net cash used by financing activities	(83,991)		(130,284)		(67,940)
Net change in cash	67,653		(67,875)		40,288
Cash, beginning of the year	59,848		127,723		87,435
Cash, end of year	$	127,501	$	59,848	$	127,723

Nature of Operations and Summary of Significant Accounting Policies - Allowance for Credit Losses and Loans Held for Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jan. 01, 2021	Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for Credit Losses	$ 245		$ 0
Loans	9,241,861		9,243,174
PPP, CARES Act
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans	106,600		667,100
State and municipal
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for Credit Losses	$ 245		0
Impact of adopting ASC 326
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans		$ 4,776
Impact of adopting ASC 326 \| State and municipal
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for Credit Losses		$ 245	$ 245

Nature of Operations and Summary of Significant Accounting Policies - Premises and Equipment (Details)	12 Months Ended
	Dec. 31, 2021
Minimum
Premises and Equipment [Line Items]
Estimated useful lives of assets	3 years
Maximum
Premises and Equipment [Line Items]
Estimated useful lives of assets	40 years

Nature of Operations and Summary of Significant Accounting Policies - Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2021
Minimum
Intangible Assets [Abstract]
Estimated useful lives of intangible assets	2 years
Maximum
Intangible Assets [Abstract]
Estimated useful lives of intangible assets	10 years

Nature of Operations and Summary of Significant Accounting Policies - Share Based Compensation (Details)	12 Months Ended
	Dec. 31, 2021
Minimum
Schedule of Stock Options and Restricted Stock Award Plans [Line Items]
Requisite service period	2 years
Maximum
Schedule of Stock Options and Restricted Stock Award Plans [Line Items]
Requisite service period	5 years

Nature of Operations and Summary of Significant Accounting Policies - Impact Of Covid-19 (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans	$ 9,241,861	$ 9,243,174
PPP, CARES Act
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Loans	$ 106,600	$ 667,100

Nature of Operations and Summary of Significant Accounting Policies - Recent Accounting Changes (Details) - USD ($)
$ in Thousands

Dec. 31, 2021

Jan. 01, 2021

Dec. 31, 2020

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Retained earnings

$ (864,839)

$ (788,578)

Allowance for credit losses - loans

^[1]

195,397

130,648

Allowance for credit losses on unfunded loan commitments

20,500

$ 20,500

Allowance for credit losses

245

State and municipal

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Allowance for credit losses

245

Impact of adopting ASC 326

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Retained earnings

$ 68,040

Percent of increase in allowance

57.00%

Allowance for credit losses - loans

$ 74,055

74,055

Allowance for credit losses on unfunded loan commitments

$ 20,500

20,500

Impact of adopting ASC 326 | State and municipal

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Allowance for credit losses

$ 245

[1]

- Definition

The cumulative amount of the reporting entity's undistributed earnings or deficit.

+ References + Details

Nature of Operations and Summary of Significant Accounting Policies - Schedule of CECL Adoption Impacts (Details) - USD ($)
$ in Thousands

Dec. 31, 2021

Jan. 01, 2021

Dec. 31, 2020

Assets:

Held to maturity securities

$ 2,179,802

$ 1,227,668

Loans

9,241,861

9,243,174

Allowance for credit losses - loans

^[1]

(195,397)

(130,648)

Net loans

9,046,464

9,112,526

Tax asset, deferred and receivable

35,641

12,340

Liabilities:

Allowance for credit losses on unfunded loan commitments

20,500

$ 20,500

Stockholder's Equity:

Retained earnings

864,839

788,578

Impact of adopting ASC 326

Assets:

Held to maturity securities

(245)

Loans

4,776

Allowance for credit losses - loans

(74,055)

Net loans

(69,279)

Tax asset, deferred and receivable

21,984

Liabilities:

Allowance for credit losses on unfunded loan commitments

$ 20,500

20,500

Stockholder's Equity:

Retained earnings

(68,040)

Balances, January 1, 2021 Post-ASC 326 adoption

Assets:

Held to maturity securities

1,227,423

Loans

9,247,950

Allowance for credit losses - loans

(204,703)

$ (204,703)

Net loans

9,043,247

Tax asset, deferred and receivable

34,324

Liabilities:

Allowance for credit losses on unfunded loan commitments

20,500

Stockholder's Equity:

Retained earnings

$ 720,538

[1]

Acquisitions - Narrative (Details) $ / shares in Units, $ in Thousands			12 Months Ended
	Nov. 04, 2021 USD ($) $ / shares shares	Apr. 01, 2021 USD ($)	Dec. 31, 2021 USD ($) $ / shares	Dec. 31, 2020 USD ($) $ / shares	Dec. 31, 2019 USD ($)	Nov. 03, 2021 $ / shares
Business Acquisition [Line Items]
Cash paid in acquisition			$ 3,225	$ 0	$ 15
Liquidation value per share (in dollars per share) \| $ / shares			$ 1,000	$ 1,000
Share Price \| $ / shares						$ 43.50
Hoosier
Business Acquisition [Line Items]
Percentage of interest acquired		100.00%
Cash paid in acquisition		$ 3,225
Assets under management		290,000
Customer relationship intangible		2,247
Hoosier \| Customer relationship intangible
Business Acquisition [Line Items]
Customer relationship intangible		$ 2,247
Estimated life		10 years
Level One
Business Acquisition [Line Items]
Cash paid in acquisition	$ 77,700
Exchange ratio	0.7167
Cash payment per share (in dollars per share) \| $ / shares	$ 10.17
Share price (in dollars per share) \| $ / shares	$ 41.35
Consideration to be paid to the shareholders in cash	$ 323,500
Level One \| 7.5% Non-cumulative Perpetual Preferred Stock
Business Acquisition [Line Items]
Issuance of common stock related to acquisitions (in shares) \| shares	10,000
Dividend rate, percentage	7.50%
Liquidation value per share (in dollars per share) \| $ / shares	$ 2,500
Level One \| Common Stock
Business Acquisition [Line Items]
Issuance of common stock related to acquisitions (in shares) \| shares	5,500,000

Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Apr. 01, 2021	Dec. 31, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill	$ 545,385		$ 543,918	$ 543,918
Hoosier
Business Acquisition [Line Items]
Cash and cash equivalents		$ 292
Other assets		35
Other liabilities		(816)
Net tangible assets acquired		(489)
Customer relationship intangible		2,247
Goodwill		1,467
Purchase price		$ 3,225

Cash and Cash Equivalents and Interest-bearing Deposits (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Cash and Cash Equivalents [Abstract]
Cash amount that exceeded federally insured limits	$ 208,437
Federal Home Loan Bank and Federal Reserve Bank balance	$ 366,281

Investment Securities - Amortized Cost and Approximate Fair Values of Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Available for sale securities
Amortized Cost	$ 2,268,655	$ 1,807,389
Gross Unrealized Gains	89,536	112,079
Gross Unrealized Losses	13,640	349
Fair Value	2,344,551	1,919,119
Held to maturity securities
Amortized Cost	2,180,047	1,227,668
Allowance for Credit Losses	245	0
Net Carrying Amount	2,179,802	1,227,668
Gross Unrealized Gains	37,776	52,877
Gross Unrealized Losses	15,320	252
Fair Value	2,202,503	1,280,293
U.S. Treasury
Available for sale securities
Amortized Cost	1,000
Gross Unrealized Gains	0
Gross Unrealized Losses	1
Fair Value	999
U.S. Government-sponsored agency securities
Available for sale securities
Amortized Cost	96,244	43,437
Gross Unrealized Gains	437	1,571
Gross Unrealized Losses	1,545	0
Fair Value	95,136	45,008
Held to maturity securities
Amortized Cost	371,457	145,398
Allowance for Credit Losses	0	0
Net Carrying Amount	371,457	145,398
Gross Unrealized Gains	226	347
Gross Unrealized Losses	7,268	220
Fair Value	364,415	145,525
State and municipal
Available for sale securities
Amortized Cost	1,495,696	1,168,711
Gross Unrealized Gains	81,734	89,420
Gross Unrealized Losses	898	246
Fair Value	1,576,532	1,257,885
Held to maturity securities
Amortized Cost	1,057,301	619,927
Allowance for Credit Losses	245	0
Net Carrying Amount	1,057,056	619,927
Gross Unrealized Gains	29,593	34,978
Gross Unrealized Losses	2,170	32
Fair Value	1,084,724	654,873
U.S. Government-sponsored mortgage-backed securities
Available for sale securities
Amortized Cost	671,684	591,210
Gross Unrealized Gains	7,109	20,984
Gross Unrealized Losses	11,188	103
Fair Value	667,605	612,091
Held to maturity securities
Amortized Cost	749,789	460,843
Allowance for Credit Losses	0	0
Net Carrying Amount	749,789	460,843
Gross Unrealized Gains	7,957	17,552
Gross Unrealized Losses	5,881	0
Fair Value	751,865	478,395
Corporate obligations
Available for sale securities
Amortized Cost	4,031	4,031
Gross Unrealized Gains	256	104
Gross Unrealized Losses	8	0
Fair Value	4,279	4,135
Foreign investment
Held to maturity securities
Amortized Cost	1,500	1,500
Allowance for Credit Losses	0	0
Net Carrying Amount	1,500	1,500
Gross Unrealized Gains	0	0
Gross Unrealized Losses	1	0
Fair Value	$ 1,499	$ 1,500

Investment Securities - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Schedule of Available for sale Securities and Held to maturity Securities [Line Items]
Accrued interest on investment securities	$ 26,800
Allowance for credit losses	245	$ 0
Carrying value of securities pledged as collateral	873,200	890,000
Securities sold under repurchase agreements	$ 175,100	$ 167,300

Investment Securities - Amortized Cost of Investment Securities Held to Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 2,180,047	$ 1,227,668
Aaa
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	150,869
Aa1
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	152,666
Aa2
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	175,755
Aa3
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	130,640
A1
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	88,281
A2
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	27,364
A3
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	10,108
Baa2
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	265
Non-rated
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1,444,099
State and municipal
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1,057,301	$ 619,927
State and municipal \| Aaa
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	90,290
State and municipal \| Aa1
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	152,666
State and municipal \| Aa2
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	175,755
State and municipal \| Aa3
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	130,640
State and municipal \| A1
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	88,281
State and municipal \| A2
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	27,364
State and municipal \| A3
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	10,108
State and municipal \| Baa2
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	265
State and municipal \| Non-rated
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	381,932
Other
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1,122,746
Other \| Aaa
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	60,579
Other \| Aa1
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
Other \| Aa2
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
Other \| Aa3
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
Other \| A1
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
Other \| A2
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
Other \| A3
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
Other \| Baa2
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	0
Other \| Non-rated
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 1,062,167

Investment Securities - Allowance for Credit Losses on Investment Securities Held to Maturity (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 0
Ending balance	245
State and municipal
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning balance	0
Provision for credit loss	0
Securities charged off	0
Recoveries on securities	0
Ending balance	245
State and municipal \| Impact of adopting ASC 326
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 245

Investment Securities - Schedule of Investment Securities in a Continuous Unrealized Loss Position (Details) $ in Thousands	Dec. 31, 2021 USD ($) security	Dec. 31, 2020 USD ($) security
Fair Value
Less than 12 Months	$ 636,389	$ 15,019
12 Months or Longer	8,829	0
Total	645,218	15,019
Gross Unrealized Losses
Less than 12 Months	13,239	349
12 Months or Longer	401	0
Total	$ 13,640	$ 349
Number of Securities \| security	161	9
U.S. Treasury
Fair Value
Less than 12 Months	$ 999
12 Months or Longer	0
Total	999
Gross Unrealized Losses
Less than 12 Months	1
12 Months or Longer	0
Total	$ 1
Number of Securities \| security	1
U.S. Government-sponsored agency securities
Fair Value
Less than 12 Months	$ 68,524
12 Months or Longer	0
Total	68,524
Gross Unrealized Losses
Less than 12 Months	1,545
12 Months or Longer	0
Total	$ 1,545
Number of Securities \| security	8
State and municipal
Fair Value
Less than 12 Months	$ 138,187	$ 5,368
12 Months or Longer	505	0
Total	138,692	5,368
Gross Unrealized Losses
Less than 12 Months	894	246
12 Months or Longer	4	0
Total	$ 898	$ 246
Number of Securities \| security	103	4
U.S. Government-sponsored mortgage-backed securities
Fair Value
Less than 12 Months	$ 427,687	$ 9,651
12 Months or Longer	8,324	0
Total	436,011	9,651
Gross Unrealized Losses
Less than 12 Months	10,791	103
12 Months or Longer	397	0
Total	$ 11,188	$ 103
Number of Securities \| security	48	5
Corporate obligations
Fair Value
Less than 12 Months	$ 992
12 Months or Longer	0
Total	992
Gross Unrealized Losses
Less than 12 Months	8
12 Months or Longer	0
Total	$ 8
Number of Securities \| security	1

Investment Securities - Investments in Debt and Equity Securities Reported Less than Historical Cost (Details) - Investments reported at less than historical cost - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Schedule of Investments [Line Items]
Historical cost	$ 658,858	$ 15,368
Fair value	645,218	15,019
Gross unrealized losses	$ 13,640	$ 349
Percent of the Corporation's investments available for sale	27.50%	0.80%

Investment Securities - Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Amortized Cost
Due in one year or less	$ 6,954
Due after one through five years	5,097
Due after five through ten years	120,460
Due after ten years	1,464,460
Total debt securities with a single maturity date	1,596,971
Total Investment Securities	2,268,655
Fair Value
Due in one year or less	6,965
Due after one through five years	5,309
Due after five through ten years	126,816
Due after ten years	1,537,856
Total debt securities with a single maturity date	1,676,946
Total Investment Securities	2,344,551	$ 1,919,119
Amortized Cost
Due in one year or less	6,971
Due after one through five years	30,272
Due after five through ten years	177,203
Due after ten years	1,215,812
Total debt securities with a single maturity date	1,430,258
Amortized Cost	2,180,047	1,227,668
Fair Value
Due in one year or less	6,995
Due after one through five years	31,946
Due after five through ten years	180,129
Due after ten years	1,231,568
Total debt securities with a single maturity date	1,450,638
Total Investment Securities	2,202,503	1,280,293
U.S. Government-sponsored mortgage-backed securities
Amortized Cost
Without single maturity date	671,684
Fair Value
Without single maturity date	667,605
Total Investment Securities	667,605	612,091
Amortized Cost
Without single maturity date	749,789
Amortized Cost	749,789	460,843
Fair Value
Without single maturity date	751,865
Total Investment Securities	$ 751,865	$ 478,395

Investment Securities - Gross Gains on Sales and Redemptions of Available for Sale Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Gross gains	$ 6,502	$ 12,097	$ 4,415
Gross losses	$ 828	$ 202	$ 0

Loans and Allowance for Credit Losses - Narrative (Details)	12 Months Ended
	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan	Jan. 01, 2021 USD ($)
Receivables [Abstract]
Loans held for sale	$ 11,187,000	$ 3,966,000
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	11,187,000	3,966,000
Loans	9,241,861,000	9,243,174,000
Non-accrual loans	43,062,000	61,471,000
Interest income recognized on non-accrual loans	0	0
Amount modified under interagency statement	$ 14,083,000	$ 4,473,000
Number of Loans \| loan	15	49
Standby letters of credit usual term	2 years
Allowance for credit losses on unfunded loan commitments	$ 20,500,000	$ 0	$ 20,500,000
PPP, CARES Act
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 106,600,000	667,100,000
Number of Loans \| loan	0
Commercial real estate, non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 2,135,459,000	2,220,949,000
Non-accrual loans	23,029,000	46,316,000
Amount modified under interagency statement	$ 12,976,000
Number of Loans \| loan	1
Percentage of troubled debt restructured loans	9210.00%
Residential Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 1,159,127,000	1,234,741,000
Non-accrual loans	9,153,000	6,517,000
Amount modified under interagency statement	$ 693,000	$ 2,780,000
Number of Loans \| loan	9	38
Percentage of troubled debt restructured loans		62.20%
Mortgage loans with formal foreclosure proceedings	$ 4,200,000	$ 2,800,000
CARES Act, Modifications
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount modified under interagency statement	0	$ 120,300,000
Number of Loans \| loan		87
Term Modification
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount modified under interagency statement	13,802,000	$ 3,868,000
Term Modification \| Commercial real estate, non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount modified under interagency statement	12,976,000
Term Modification \| Residential Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Amount modified under interagency statement	449,000	2,393,000
Impact of adopting ASC 326
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans			4,776,000
Allowance for credit losses on unfunded loan commitments	20,500,000		$ 20,500,000
Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	34,700,000	72,800,000
Increase (decrease) in past due loans	38,000,000
30-59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	15,006,000	19,638,000
Increase (decrease) in past due loans	4,600,000
30-59 Days Past Due \| Commercial real estate, non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	3,327,000	2,525,000
30-59 Days Past Due \| Residential Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	3,979,000	3,269,000
60-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	7,056,000	11,187,000
Increase (decrease) in past due loans	4,100,000
60-89 Days Past Due \| Commercial real estate, non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	0	2,109,000
60-89 Days Past Due \| Residential Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	4,255,000	1,429,000
90 Days or More Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	12,686,000	41,950,000
Increase (decrease) in past due loans	29,300,000
90 Days or More Past Due \| Commercial real estate, non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	7,279,000	31,634,000
Payoff	23,400,000
90 Days or More Past Due \| Residential Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 2,599,000	$ 3,264,000

Loans and Allowance for Credit Losses - Composition of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	$ 9,241,861	$ 9,243,174
Commercial and industrial loans
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	2,714,565	2,776,699
Agricultural land, production and other loans to farmers
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	246,442	281,884
Construction
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	523,066	484,723
Commercial real estate, non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	2,135,459	2,220,949
Commercial real estate, owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	986,720	958,501
Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	1,159,127	1,234,741
Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	523,754	508,259
Individuals' loans for household and other personal expenditures
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	146,092	129,479
Public finance and other commercial loans
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	$ 806,636	$ 647,939

Loans and Allowance for Credit Losses - Credit Quality of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
2021	$ 3,023,847
2020	2,456,983
2019	778,086
2018	359,554
2017	353,319
Prior	605,794
Revolving loans amortized cost basis	1,664,006
Revolving loans converted to term	272
Loans	9,241,861	$ 9,243,174
Commercial Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		7,000,298
Commercial Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		334,989
Commercial Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		234,712
Commercial Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Commercial Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Consumer Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		1,666,062
Consumer Non-Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		7,113
PPP, CARES Act
Financing Receivable, Credit Quality Indicator [Line Items]
2021	100,300
2020		6,300
Loans	106,600	667,100
Commercial and industrial loans
Financing Receivable, Credit Quality Indicator [Line Items]
2021	1,033,127
2020	375,587
2019	152,142
2018	68,827
2017	23,936
Prior	32,992
Revolving loans amortized cost basis	1,027,954
Revolving loans converted to term	0
Loans	2,714,565	2,776,699
Commercial and industrial loans \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2021	1,019,757
2020	362,372
2019	144,520
2018	65,165
2017	21,575
Prior	30,420
Revolving loans amortized cost basis	990,335
Revolving loans converted to term	0
Loans	2,634,144
Commercial and industrial loans \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021	10,559
2020	11,088
2019	190
2018	730
2017	1,930
Prior	1,825
Revolving loans amortized cost basis	15,026
Revolving loans converted to term	0
Loans	41,348
Commercial and industrial loans \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2021	2,811
2020	2,127
2019	7,432
2018	2,932
2017	431
Prior	747
Revolving loans amortized cost basis	22,593
Revolving loans converted to term	0
Loans	39,073
Commercial and industrial loans \| Commercial Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		2,562,077
Commercial and industrial loans \| Commercial Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		117,503
Commercial and industrial loans \| Commercial Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		97,119
Commercial and industrial loans \| Commercial Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Commercial and industrial loans \| Commercial Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Commercial and industrial loans \| Consumer Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Commercial and industrial loans \| Consumer Non-Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Agricultural land, production and other loans to farmers
Financing Receivable, Credit Quality Indicator [Line Items]
2021	50,775
2020	47,213
2019	22,303
2018	8,060
2017	6,153
Prior	36,353
Revolving loans amortized cost basis	75,585
Revolving loans converted to term	0
Loans	246,442	281,884
Agricultural land, production and other loans to farmers \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2021	50,251
2020	45,164
2019	22,195
2018	7,689
2017	6,153
Prior	36,074
Revolving loans amortized cost basis	74,871
Revolving loans converted to term	0
Loans	242,397
Agricultural land, production and other loans to farmers \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	1,543
2019	0
2018	0
2017	0
Prior	252
Revolving loans amortized cost basis	264
Revolving loans converted to term	0
Loans	2,059
Agricultural land, production and other loans to farmers \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2021	524
2020	506
2019	108
2018	371
2017	0
Prior	27
Revolving loans amortized cost basis	450
Revolving loans converted to term	0
Loans	1,986
Agricultural land, production and other loans to farmers \| Commercial Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		243,991
Agricultural land, production and other loans to farmers \| Commercial Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		26,835
Agricultural land, production and other loans to farmers \| Commercial Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		9,885
Agricultural land, production and other loans to farmers \| Commercial Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Agricultural land, production and other loans to farmers \| Commercial Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Agricultural land, production and other loans to farmers \| Consumer Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		1,173
Agricultural land, production and other loans to farmers \| Consumer Non-Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Construction
Financing Receivable, Credit Quality Indicator [Line Items]
2021	235,904
2020	201,132
2019	63,589
2018	979
2017	1,762
Prior	2,499
Revolving loans amortized cost basis	17,201
Revolving loans converted to term	0
Loans	523,066	484,723
Construction \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2021	215,167
2020	200,169
2019	63,589
2018	979
2017	1,762
Prior	2,453
Revolving loans amortized cost basis	17,201
Revolving loans converted to term	0
Loans	501,320
Construction \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021	20,737
2020	270
2019	0
2018	0
2017	0
Prior	46
Revolving loans amortized cost basis	0
Revolving loans converted to term	0
Loans	21,053
Construction \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	693
2019	0
2018	0
2017	0
Prior	0
Revolving loans amortized cost basis	0
Revolving loans converted to term	0
Loans	693
Construction \| Commercial Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		446,846
Construction \| Commercial Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		10,445
Construction \| Commercial Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		5,549
Construction \| Commercial Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Construction \| Commercial Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Construction \| Consumer Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		21,763
Construction \| Consumer Non-Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		120
Commercial real estate, non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2021	676,889
2020	852,798
2019	227,510
2018	113,089
2017	109,556
Prior	128,838
Revolving loans amortized cost basis	26,779
Revolving loans converted to term	0
Loans	2,135,459	2,220,949
Commercial real estate, non-owner occupied \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2021	589,296
2020	688,406
2019	227,332
2018	111,971
2017	103,400
Prior	126,837
Revolving loans amortized cost basis	26,779
Revolving loans converted to term	0
Loans	1,874,021
Commercial real estate, non-owner occupied \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021	68,279
2020	149,480
2019	0
2018	0
2017	0
Prior	1,723
Revolving loans amortized cost basis	0
Revolving loans converted to term	0
Loans	219,482
Commercial real estate, non-owner occupied \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2021	19,314
2020	14,912
2019	178
2018	1,118
2017	6,156
Prior	278
Revolving loans amortized cost basis	0
Revolving loans converted to term	0
Loans	41,956
Commercial real estate, non-owner occupied \| Commercial Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		1,979,827
Commercial real estate, non-owner occupied \| Commercial Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		160,304
Commercial real estate, non-owner occupied \| Commercial Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		80,818
Commercial real estate, non-owner occupied \| Commercial Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Commercial real estate, non-owner occupied \| Commercial Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Commercial real estate, non-owner occupied \| Consumer Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Commercial real estate, non-owner occupied \| Consumer Non-Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Commercial real estate, owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
2021	311,876
2020	404,099
2019	93,076
2018	44,837
2017	47,059
Prior	51,626
Revolving loans amortized cost basis	34,147
Revolving loans converted to term	0
Loans	986,720	958,501
Commercial real estate, owner occupied \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2021	299,186
2020	392,383
2019	92,338
2018	43,252
2017	46,044
Prior	48,571
Revolving loans amortized cost basis	33,998
Revolving loans converted to term	0
Loans	955,772
Commercial real estate, owner occupied \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021	5,665
2020	5,953
2019	738
2018	1,532
2017	902
Prior	1,301
Revolving loans amortized cost basis	149
Revolving loans converted to term	0
Loans	16,240
Commercial real estate, owner occupied \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2021	7,025
2020	5,763
2019	0
2018	53
2017	113
Prior	1,754
Revolving loans amortized cost basis	0
Revolving loans converted to term	0
Loans	14,708
Commercial real estate, owner occupied \| Commercial Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		907,566
Commercial real estate, owner occupied \| Commercial Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		17,641
Commercial real estate, owner occupied \| Commercial Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		33,294
Commercial real estate, owner occupied \| Commercial Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Commercial real estate, owner occupied \| Commercial Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Commercial real estate, owner occupied \| Consumer Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Commercial real estate, owner occupied \| Consumer Non-Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Residential
Financing Receivable, Credit Quality Indicator [Line Items]
2021	351,764
2020	356,660
2019	104,819
2018	71,299
2017	55,520
Prior	216,032
Revolving loans amortized cost basis	2,955
Revolving loans converted to term	78
Loans	1,159,127	1,234,741
Residential \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2021	349,726
2020	353,691
2019	103,028
2018	69,745
2017	55,240
Prior	210,669
Revolving loans amortized cost basis	2,955
Revolving loans converted to term	73
Loans	1,145,127
Residential \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021	1,034
2020	1,394
2019	1,456
2018	306
2017	172
Prior	2,106
Revolving loans amortized cost basis	0
Revolving loans converted to term	0
Loans	6,468
Residential \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2021	1,004
2020	1,575
2019	335
2018	1,248
2017	108
Prior	3,257
Revolving loans amortized cost basis	0
Revolving loans converted to term	5
Loans	7,532
Residential \| Commercial Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		199,338
Residential \| Commercial Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		2,261
Residential \| Commercial Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		7,058
Residential \| Commercial Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Residential \| Commercial Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Residential \| Consumer Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		1,020,687
Residential \| Consumer Non-Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		5,397
Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
2021	64,365
2020	17,641
2019	2,025
2018	2,135
2017	1,341
Prior	3,526
Revolving loans amortized cost basis	432,527
Revolving loans converted to term	194
Loans	523,754	508,259
Home equity \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2021	63,845
2020	17,556
2019	1,977
2018	2,127
2017	1,250
Prior	3,432
Revolving loans amortized cost basis	427,437
Revolving loans converted to term	194
Loans	517,818
Home equity \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	85
2019	48
2018	0
2017	0
Prior	24
Revolving loans amortized cost basis	3,451
Revolving loans converted to term	0
Loans	3,608
Home equity \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2021	520
2020	0
2019	0
2018	8
2017	91
Prior	70
Revolving loans amortized cost basis	1,639
Revolving loans converted to term	0
Loans	2,328
Home equity \| Commercial Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		12,714
Home equity \| Commercial Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Home equity \| Commercial Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		989
Home equity \| Commercial Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Home equity \| Commercial Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Home equity \| Consumer Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		492,999
Home equity \| Consumer Non-Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		1,557
Individuals' loans for household and other personal expenditures
Financing Receivable, Credit Quality Indicator [Line Items]
2021	67,828
2020	23,537
2019	11,943
2018	11,230
2017	2,028
Prior	4,986
Revolving loans amortized cost basis	24,540
Revolving loans converted to term	0
Loans	146,092	129,479
Individuals' loans for household and other personal expenditures \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2021	67,749
2020	23,452
2019	11,893
2018	11,197
2017	2,008
Prior	4,928
Revolving loans amortized cost basis	24,406
Revolving loans converted to term	0
Loans	145,633
Individuals' loans for household and other personal expenditures \| Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
2021	79
2020	85
2019	50
2018	33
2017	20
Prior	58
Revolving loans amortized cost basis	134
Revolving loans converted to term	0
Loans	459
Individuals' loans for household and other personal expenditures \| Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2021	0
2020	0
2019	0
2018	0
2017	0
Prior	0
Revolving loans amortized cost basis	0
Revolving loans converted to term	0
Loans	0
Individuals' loans for household and other personal expenditures \| Commercial Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Individuals' loans for household and other personal expenditures \| Commercial Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Individuals' loans for household and other personal expenditures \| Commercial Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Individuals' loans for household and other personal expenditures \| Commercial Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Individuals' loans for household and other personal expenditures \| Commercial Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Individuals' loans for household and other personal expenditures \| Consumer Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		129,440
Individuals' loans for household and other personal expenditures \| Consumer Non-Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		39
Public finance and other commercial loans
Financing Receivable, Credit Quality Indicator [Line Items]
2021	231,319
2020	178,316
2019	100,679
2018	39,098
2017	105,964
Prior	128,942
Revolving loans amortized cost basis	22,318
Revolving loans converted to term	0
Loans	806,636	647,939
Public finance and other commercial loans \| Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2021	231,319
2020	178,316
2019	100,679
2018	39,098
2017	105,964
Prior	128,942
Revolving loans amortized cost basis	22,318
Revolving loans converted to term	0
Loans	$ 806,636
Public finance and other commercial loans \| Commercial Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		647,939
Public finance and other commercial loans \| Commercial Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Public finance and other commercial loans \| Commercial Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Public finance and other commercial loans \| Commercial Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Public finance and other commercial loans \| Commercial Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Public finance and other commercial loans \| Consumer Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		0
Public finance and other commercial loans \| Consumer Non-Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Loans		$ 0

Loans and Allowance for Credit Losses - Past Due Aging of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Loans	$ 9,241,861	$ 9,243,174
Loans > 90 Days or More Past Due And Accruing	963	746
Current
Financing Receivable, Past Due [Line Items]
Loans	9,207,113	9,170,399
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	15,006	19,638
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	7,056	11,187
90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	12,686	41,950
Commercial and industrial loans
Financing Receivable, Past Due [Line Items]
Loans	2,714,565	2,776,699
Loans > 90 Days or More Past Due And Accruing	675	594
Commercial and industrial loans \| Current
Financing Receivable, Past Due [Line Items]
Loans	2,708,539	2,761,473
Commercial and industrial loans \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	2,602	5,866
Commercial and industrial loans \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	2,437	6,571
Commercial and industrial loans \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	987	2,789
Agricultural land, production and other loans to farmers
Financing Receivable, Past Due [Line Items]
Loans	246,442	281,884
Loans > 90 Days or More Past Due And Accruing	0	0
Agricultural land, production and other loans to farmers \| Current
Financing Receivable, Past Due [Line Items]
Loans	246,380	280,615
Agricultural land, production and other loans to farmers \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	36	146
Agricultural land, production and other loans to farmers \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	226
Agricultural land, production and other loans to farmers \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	26	897
Construction
Financing Receivable, Past Due [Line Items]
Loans	523,066	484,723
Loans > 90 Days or More Past Due And Accruing	0	0
Construction \| Current
Financing Receivable, Past Due [Line Items]
Loans	522,349	484,706
Construction \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	717	0
Construction \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	17
Construction \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial real estate, non-owner occupied
Financing Receivable, Past Due [Line Items]
Loans	2,135,459	2,220,949
Loans > 90 Days or More Past Due And Accruing	0	0
Commercial real estate, non-owner occupied \| Current
Financing Receivable, Past Due [Line Items]
Loans	2,124,853	2,184,681
Commercial real estate, non-owner occupied \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	3,327	2,525
Commercial real estate, non-owner occupied \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	2,109
Commercial real estate, non-owner occupied \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	7,279	31,634
Commercial real estate, owner occupied
Financing Receivable, Past Due [Line Items]
Loans	986,720	958,501
Loans > 90 Days or More Past Due And Accruing	0	0
Commercial real estate, owner occupied \| Current
Financing Receivable, Past Due [Line Items]
Loans	985,785	951,561
Commercial real estate, owner occupied \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	643	4,854
Commercial real estate, owner occupied \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	180
Commercial real estate, owner occupied \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	292	1,906
Residential
Financing Receivable, Past Due [Line Items]
Loans	1,159,127	1,234,741
Loans > 90 Days or More Past Due And Accruing	0	133
Residential \| Current
Financing Receivable, Past Due [Line Items]
Loans	1,148,294	1,226,779
Residential \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	3,979	3,269
Residential \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	4,255	1,429
Residential \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	2,599	3,264
Home equity
Financing Receivable, Past Due [Line Items]
Loans	523,754	508,259
Loans > 90 Days or More Past Due And Accruing	288	19
Home equity \| Current
Financing Receivable, Past Due [Line Items]
Loans	518,643	503,596
Home equity \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	3,327	2,644
Home equity \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	281	559
Home equity \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	1,503	1,460
Consumer
Financing Receivable, Past Due [Line Items]
Loans	146,092	129,479
Loans > 90 Days or More Past Due And Accruing	0	0
Consumer \| Current
Financing Receivable, Past Due [Line Items]
Loans	145,634	129,049
Consumer \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	375	334
Consumer \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	83	96
Consumer \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Public finance and other commercial loans
Financing Receivable, Past Due [Line Items]
Loans	806,636	647,939
Loans > 90 Days or More Past Due And Accruing	0	0
Public finance and other commercial loans \| Current
Financing Receivable, Past Due [Line Items]
Loans	806,636	647,939
Public finance and other commercial loans \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Public finance and other commercial loans \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Public finance and other commercial loans \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	$ 0	$ 0

Loans and Allowance for Credit Losses - Summary of Non-Accrual Loans by Loan Class (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-Accrual Loans	$ 43,062	$ 61,471
Non-Accrual Loans with no Allowance for Credit Losses	9,080
Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-Accrual Loans	7,598	2,329
Non-Accrual Loans with no Allowance for Credit Losses	263
Agricultural land, production and other loans to farmers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-Accrual Loans	631	1,012
Non-Accrual Loans with no Allowance for Credit Losses	524
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-Accrual Loans	685	123
Non-Accrual Loans with no Allowance for Credit Losses	0
Commercial real estate, non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-Accrual Loans	23,029	46,316
Non-Accrual Loans with no Allowance for Credit Losses	6,133
Commercial real estate, owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-Accrual Loans	411	3,040
Non-Accrual Loans with no Allowance for Credit Losses	0
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-Accrual Loans	9,153	6,517
Non-Accrual Loans with no Allowance for Credit Losses	2,160
Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-Accrual Loans	1,552	2,095
Non-Accrual Loans with no Allowance for Credit Losses	0
Individuals' loans for household and other personal expenditures
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-Accrual Loans	3	$ 39
Non-Accrual Loans with no Allowance for Credit Losses	$ 0

Loans and Allowance for Credit Losses - Schedule of Modified Loans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans \| loan	5	11
Recorded Balance \| $	$ 475	$ 1,288
Commercial and industrial loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans \| loan		2
Recorded Balance \| $		$ 585
Residential
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans \| loan	5	8
Recorded Balance \| $	$ 475	$ 610
Home equity
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans \| loan		1
Recorded Balance \| $		$ 93

Loans and Allowance for Credit Losses - Changes in Allowance for Loan Losses by Loan Segment (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Allowance for loan losses:

Beginning balance

^[1]

$ 130,648

Provision for credit losses

Recoveries on loans

2,578

Loans charged off

(11,884)

Ending balance

^[1]

195,397

$ 130,648

Beginning balance

130,648

80,284

$ 80,552

Provision for credit losses - loans

58,673

2,800

Recoveries on loans

2,176

3,553

Allowance for Loan and Lease Losses, Write-offs

(10,485)

(6,621)

Ending balance

130,648

80,284

Impact of adopting ASC 326

Allowance for loan losses:

Beginning balance

74,055

Ending balance

74,055

Balances, January 1, 2021 Post-ASC 326 adoption

Allowance for loan losses:

Beginning balance

204,703

Ending balance

204,703

Previously Reported

Allowance for loan losses:

Beginning balance

130,648

Ending balance

130,648

Credit risk reclassifications

Allowance for loan losses:

Beginning balance

Ending balance

Commercial

Allowance for loan losses:

Beginning balance

47,115

Provision for credit losses

7,921

Recoveries on loans

724

Loans charged off

(5,849)

Ending balance

69,935

47,115

Beginning balance

47,115

32,902

32,657

Provision for credit losses - loans

21,930

733

Recoveries on loans

819

1,244

Allowance for Loan and Lease Losses, Write-offs

(8,536)

(1,732)

Ending balance

47,115

32,902

Commercial | Impact of adopting ASC 326

Allowance for loan losses:

Beginning balance

20,024

Ending balance

20,024

Commercial | Balances, January 1, 2021 Post-ASC 326 adoption

Allowance for loan losses:

Beginning balance

67,139

Ending balance

67,139

Commercial | Previously Reported

Allowance for loan losses:

Beginning balance

47,115

Ending balance

47,115

Commercial | Credit risk reclassifications

Allowance for loan losses:

Beginning balance

Ending balance

Commercial Real Estate

Allowance for loan losses:

Beginning balance

40,786

Provision for credit losses

(11,093)

Recoveries on loans

580

Loans charged off

(4,533)

Ending balance

60,665

40,786

Beginning balance

51,070

28,778

29,609

Provision for credit losses - loans

22,174

1,555

Recoveries on loans

431

1,289

Allowance for Loan and Lease Losses, Write-offs

(313)

(3,675)

Ending balance

51,070

28,778

Commercial Real Estate | Impact of adopting ASC 326

Allowance for loan losses:

Beginning balance

34,925

Ending balance

34,925

Commercial Real Estate | Balances, January 1, 2021 Post-ASC 326 adoption

Allowance for loan losses:

Beginning balance

75,711

Ending balance

75,711

Commercial Real Estate | Previously Reported

Allowance for loan losses:

Beginning balance

51,070

Ending balance

51,070

Commercial Real Estate | Credit risk reclassifications

Allowance for loan losses:

Beginning balance

(10,284)

Ending balance

(10,284)

Construction

Allowance for loan losses:

Beginning balance

10,284

Provision for credit losses

1,122

Recoveries on loans

Loans charged off

(6)

Ending balance

20,206

10,284

Construction | Impact of adopting ASC 326

Allowance for loan losses:

Beginning balance

8,805

Ending balance

8,805

Construction | Balances, January 1, 2021 Post-ASC 326 adoption

Allowance for loan losses:

Beginning balance

19,089

Ending balance

19,089

Construction | Previously Reported

Allowance for loan losses:

Beginning balance

Ending balance

Construction | Credit risk reclassifications

Allowance for loan losses:

Beginning balance

10,284

Ending balance

10,284

Consumer

Allowance for loan losses:

Beginning balance

Provision for credit losses

9,648

4,035

3,964

Provision for credit losses - loans

5,996

239

Recoveries on loans

260

401

Allowance for Loan and Lease Losses, Write-offs

(643)

(569)

Ending balance

9,648

4,035

Consumer | Impact of adopting ASC 326

Allowance for loan losses:

Beginning balance

Ending balance

Consumer | Balances, January 1, 2021 Post-ASC 326 adoption

Allowance for loan losses:

Beginning balance

Ending balance

Consumer | Previously Reported

Allowance for loan losses:

Beginning balance

9,648

Ending balance

9,648

Consumer | Credit risk reclassifications

Allowance for loan losses:

Beginning balance

(9,648)

Ending balance

(9,648)

Residential

Allowance for loan losses:

Beginning balance

Provision for credit losses

22,815

14,569

14,322

Provision for credit losses - loans

8,573

273

Recoveries on loans

666

619

Allowance for Loan and Lease Losses, Write-offs

(993)

(645)

Ending balance

22,815

$ 14,569

Residential | Impact of adopting ASC 326

Allowance for loan losses:

Beginning balance

Ending balance

Residential | Balances, January 1, 2021 Post-ASC 326 adoption

Allowance for loan losses:

Beginning balance

Ending balance

Residential | Previously Reported

Allowance for loan losses:

Beginning balance

22,815

Ending balance

22,815

Residential | Credit risk reclassifications

Allowance for loan losses:

Beginning balance

(22,815)

Ending balance

(22,815)

Consumer & Residential

Allowance for loan losses:

Beginning balance

32,463

Provision for credit losses

2,050

Recoveries on loans

1,273

Loans charged off

(1,496)

Ending balance

44,591

32,463

Consumer & Residential | Impact of adopting ASC 326

Allowance for loan losses:

Beginning balance

10,301

Ending balance

10,301

Consumer & Residential | Balances, January 1, 2021 Post-ASC 326 adoption

Allowance for loan losses:

Beginning balance

42,764

Ending balance

42,764

Consumer & Residential | Previously Reported

Allowance for loan losses:

Beginning balance

Ending balance

Consumer & Residential | Credit risk reclassifications

Allowance for loan losses:

Beginning balance

$ 32,463

Ending balance

$ 32,463

[1]

Loans and Allowance for Credit Losses - Allowance for Credit Losses and Loan Portfolio by Loan Segment (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Allowance Balances:
Individually evaluated for impairment		$ 12,901
Collectively evaluated for impairment		117,747
Total Allowance for Loan Losses		130,648
Loan Balances:
Individually evaluated for impairment	$ 39,531	56,156
Collectively evaluated for impairment		9,180,857
Loans acquired with deteriorated credit quality		9,243,174
Loans acquired with deteriorated credit quality
Loan Balances:
Loans acquired with deteriorated credit quality		6,161
Commercial
Allowance Balances:
Individually evaluated for impairment		223
Collectively evaluated for impairment		46,892
Total Allowance for Loan Losses		47,115
Loan Balances:
Individually evaluated for impairment		1,258
Collectively evaluated for impairment		3,505,863
Loans acquired with deteriorated credit quality		3,507,698
Commercial \| Loans acquired with deteriorated credit quality
Loan Balances:
Loans acquired with deteriorated credit quality		577
Commercial Real Estate
Allowance Balances:
Individually evaluated for impairment		12,246
Collectively evaluated for impairment		38,824
Total Allowance for Loan Losses		51,070
Loan Balances:
Individually evaluated for impairment		51,605
Collectively evaluated for impairment		3,805,808
Loans acquired with deteriorated credit quality		3,862,997
Commercial Real Estate \| Loans acquired with deteriorated credit quality
Loan Balances:
Loans acquired with deteriorated credit quality		5,584
Consumer
Allowance Balances:
Individually evaluated for impairment		0
Collectively evaluated for impairment		9,648
Total Allowance for Loan Losses		9,648
Loan Balances:
Individually evaluated for impairment		2
Collectively evaluated for impairment		129,477
Loans acquired with deteriorated credit quality		129,479
Consumer \| Loans acquired with deteriorated credit quality
Loan Balances:
Loans acquired with deteriorated credit quality		0
Residential
Allowance Balances:
Individually evaluated for impairment		432
Collectively evaluated for impairment		22,383
Total Allowance for Loan Losses		22,815
Loan Balances:
Individually evaluated for impairment		3,291
Collectively evaluated for impairment		1,739,709
Loans acquired with deteriorated credit quality		1,743,000
Residential \| Loans acquired with deteriorated credit quality
Loan Balances:
Loans acquired with deteriorated credit quality		$ 0

Loans and Allowance for Credit Losses - Composition of Impaired Loans by Loan Class (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Unpaid Principal Balance
Impaired loans with no related allowance	$ 9,101	$ 9,955
Impaired loans with related allowance	49,513	5,139
Total Impaired Loans	58,614	15,094
Recorded Investment
Impaired loans with no related allowance	7,813	7,352
Impaired loans with related allowance	48,343	4,357
Total Impaired Loans	56,156	11,709
Related Allowance	12,901	689
Average Recorded Investment
Impaired loans with no related allowance	8,113	7,924
Impaired loans with related allowance	49,003	4,405
Total Impaired Loans	57,116	12,329
Interest Income Recognized
Impaired loans with no related allowance	148	159
Impaired loans with related allowance	84	75
Total Impaired Loans	232	234
Commercial and industrial loans
Unpaid Principal Balance
Impaired loans with no related allowance	1,059	320
Impaired loans with related allowance	268
Recorded Investment
Impaired loans with no related allowance	991	320
Impaired loans with related allowance	268
Related Allowance	223
Average Recorded Investment
Impaired loans with no related allowance	991	320
Impaired loans with related allowance	267
Interest Income Recognized
Impaired loans with no related allowance	0	0
Impaired loans with related allowance	0
Agricultural land, production and other loans to farmers
Unpaid Principal Balance
Impaired loans with no related allowance		752
Impaired loans with related allowance	640	588
Recorded Investment
Impaired loans with no related allowance		381
Impaired loans with related allowance	562	585
Related Allowance	3	107
Average Recorded Investment
Impaired loans with no related allowance		542
Impaired loans with related allowance	589	585
Interest Income Recognized
Impaired loans with no related allowance		0
Impaired loans with related allowance	0	0
Construction
Unpaid Principal Balance
Impaired loans with no related allowance		1,206
Recorded Investment
Impaired loans with no related allowance		970
Average Recorded Investment
Impaired loans with no related allowance		1,229
Interest Income Recognized
Impaired loans with no related allowance		0
Commercial real estate, non-owner occupied
Unpaid Principal Balance
Impaired loans with no related allowance	4,958	6,202
Impaired loans with related allowance	44,016
Recorded Investment
Impaired loans with no related allowance	4,694	5,299
Impaired loans with related allowance	43,715
Related Allowance	11,686
Average Recorded Investment
Impaired loans with no related allowance	4,850	5,399
Impaired loans with related allowance	44,119
Interest Income Recognized
Impaired loans with no related allowance	145	156
Impaired loans with related allowance	0
Commercial real estate, owner occupied
Unpaid Principal Balance
Impaired loans with no related allowance	2,125	1,382
Impaired loans with related allowance	2,061	2,060
Recorded Investment
Impaired loans with no related allowance	1,310	306
Impaired loans with related allowance	1,323	1,324
Related Allowance	557	124
Average Recorded Investment
Impaired loans with no related allowance	1,429	357
Impaired loans with related allowance	1,447	1,324
Interest Income Recognized
Impaired loans with no related allowance	0	0
Impaired loans with related allowance	0	0
Residential
Unpaid Principal Balance
Impaired loans with no related allowance	957	93
Impaired loans with related allowance	2,041	2,070
Recorded Investment
Impaired loans with no related allowance	816	76
Impaired loans with related allowance	2,014	2,044
Related Allowance	352	383
Average Recorded Investment
Impaired loans with no related allowance	840	77
Impaired loans with related allowance	2,108	2,083
Interest Income Recognized
Impaired loans with no related allowance	3	3
Impaired loans with related allowance	70	63
Home equity
Unpaid Principal Balance
Impaired loans with related allowance	487	417
Recorded Investment
Impaired loans with related allowance	461	400
Related Allowance	80	75
Average Recorded Investment
Impaired loans with related allowance	473	409
Interest Income Recognized
Impaired loans with related allowance	14	12
Individuals' loans for household and other personal expenditures
Unpaid Principal Balance
Impaired loans with no related allowance	2
Impaired loans with related allowance		4
Recorded Investment
Impaired loans with no related allowance	2
Impaired loans with related allowance		4
Related Allowance		0
Average Recorded Investment
Impaired loans with no related allowance	3
Impaired loans with related allowance		4
Interest Income Recognized
Impaired loans with no related allowance	$ 0
Impaired loans with related allowance		$ 0

Loans and Allowance for Credit Losses - Amounts of Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Commitments to Extend Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Amounts of commitments	$ 3,917,215	$ 3,443,514
Standby Letters of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Amounts of commitments	$ 34,613	$ 29,555

Loans and Allowance for Credit Losses - Allowance for Credit Losses, Off-balance Sheet (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]
Balances, January 1, 2021	$ 0
Provision for credit losses	0
Balances, December 31, 2021	$ 20,500

Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Premises and Equipment [Line Items]
Total Cost	$ 312,644	$ 316,548
Accumulated Depreciation and Amortization	(206,989)	(205,486)
Net	105,655	111,062
Land
Premises and Equipment [Line Items]
Total Cost	22,349	25,619
Buildings and Leasehold Improvements
Premises and Equipment [Line Items]
Total Cost	160,410	163,588
Equipment
Premises and Equipment [Line Items]
Total Cost	$ 129,885	$ 127,341

Goodwill - Narrative (Details) - USD ($)	12 Months Ended
Goodwill - Narrative (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2021	Apr. 01, 2021	Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill	$ 543,918,000	$ 545,385,000		$ 543,918,000
Goodwill impairment loss	$ 0
Hoosier
Business Acquisition [Line Items]
Goodwill			$ 1,467,000

Goodwill - Rollforward (Details) - USD ($) $ in Thousands	12 Months Ended
Goodwill - Rollforward (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Goodwill [Roll Forward]
Beginning balance	$ 543,918	$ 543,918
Goodwill acquired	1,467	0
Ending balance	$ 545,385	$ 543,918

Other Intangibles - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Apr. 01, 2021
Business Acquisition [Line Items]
Intangible asset amortization	$ 5,747	$ 5,987	$ 5,994
Minimum
Business Acquisition [Line Items]
Useful life of core deposit intangibles and other intangibles	2 years
Maximum
Business Acquisition [Line Items]
Useful life of core deposit intangibles and other intangibles	10 years
Hoosier
Business Acquisition [Line Items]
Customer relationship intangible				$ 2,247
Hoosier \| Customer Relationships
Business Acquisition [Line Items]
Customer relationship intangible				$ 2,247

Other Intangibles - Schedule of Core Deposit and Other Intangibles (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Gross carrying amount	$ 102,396	$ 102,396
Other intangibles acquired	2,247	0
Accumulated amortization	(79,168)	(73,421)
Total other intangibles	$ 25,475	$ 28,975

Other Intangibles - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Amortization Expense
2022	$ 5,402
2023	5,145
2024	4,510
2025	3,754
2026	2,948
After 2026	3,716
Total other intangibles	$ 25,475	$ 28,975

Leases - Narrative (Details)	Dec. 31, 2021	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other liabilities	Other liabilities
Minimum
Lessee, Lease, Description [Line Items]
Renewal term	5 years
Maximum
Lessee, Lease, Description [Line Items]
Renewal term	20 years

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Total lease assets	$ 17,818	$ 18,247
Total lease liabilities	$ 19,619	$ 20,058
Weighted average remaining lease term (years)
Operating leases	7 years	8 years
Weighted average discount rate
Operating leases	3.10%	3.30%

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Lease Cost:
Operating lease cost	$ 3,710	$ 3,724	$ 3,617
Short-term lease cost	345	247	204
Variable lease cost	980	842	948
Sublease income	(33)	(43)	(13)
Total lease cost	$ 5,002	$ 4,770	$ 4,756

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Maturity of lease liabilities
2022	$ 3,954
2023	3,569
2024	3,464
2025	3,217
2026	1,945
2027 and after	5,913
Total lease payments	22,062
Less: Present value discount	2,443
Present value of lease liabilities	19,619	$ 20,058
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	3,773	3,629	$ 3,422
ROU assets obtained in exchange for new operating lease liabilities	$ 2,700	$ 1,601	$ 23,529

Deposits - Schedule of Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Statistical Disclosure for Banks [Abstract]
Demand deposits	$ 7,704,190	$ 6,821,152
Savings deposits	4,334,802	3,661,713
Certificates and other time deposits of $100,000 or more	273,379	346,194
Other certificates and time deposits	389,752	459,168
Brokered deposits	30,454	73,383
Total deposits	$ 12,732,577	$ 11,361,610

Deposits - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Deposits - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2021
Statistical Disclosure for Banks [Abstract]
Deposits exceeding FDIC amount	$ 6,400.0	$ 7,600.0
Increase in demand accounts	883.0
Increase savings accounts	673.1
Decrease in certificates of deposit	142.2
Decrease brokered deposits	$ 42.9

Deposits - Schedule of Contractual Maturities of Time Deposits (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Certificates and Other Time Deposits
2022	$ 548,203
2023	108,558
2024	15,506
2025	10,394
2026	9,662
After 2026	1,262
Total	$ 693,585

Borrowings - Schedule of Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
Securities sold under repurchase agreements	$ 181,577	$ 177,102
Federal Home Loan Bank advances	334,055	389,430
Subordinated debentures and term loans	118,618	118,380
Total Borrowings	$ 634,250	$ 684,912

Borrowings - Narrative (Details)					12 Months Ended
Borrowings - Narrative (Details)	Mar. 16, 2020 USD ($)	Dec. 31, 2015 USD ($)	Aug. 10, 2015 USD ($)	Nov. 01, 2013 USD ($) investor	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Sep. 15, 2012	Jul. 02, 2007 USD ($)
Debt Instrument [Line Items]
Required value of assets pledged as collateral as a percentage to outstanding advances (at least)					145.00%
Total available remaining borrowing capacity from FHLB					$ 728,500,000
Putable advances with the FHLB					334,055,000	$ 389,430,000
Debt face amount				$ 70,000,000
Repayment of borrowings					$ 96,204,000	621,548,000	$ 643,169,000
Private debt issuance, number of institutional investors \| investor				4
Senior Notes
Debt Instrument [Line Items]
Fixed interest rate term				10 years
5.00% Senior Notes Due 2028
Debt Instrument [Line Items]
Redemption price (percent)					100.00%
Putable Advances
Debt Instrument [Line Items]
Putable advances with the FHLB					$ 125,000,000
Minimum
Debt Instrument [Line Items]
Interest rate, minimum (as a percent)					0.35%
Maximum
Debt Instrument [Line Items]
Interest rate, minimum (as a percent)					2.62%
Securities Sold Under Repurchase Agreements
Debt Instrument [Line Items]
Maximum amount of outstanding agreements					$ 199,100,000	197,900,000
Total of average agreements					173,800,000	180,700,000
Debt outstanding					181,577,000
Subordinated Debentures and Term Loans
Debt Instrument [Line Items]
Debt outstanding					118,618,000	$ 118,400,000
Subordinated Debenture
Debt Instrument [Line Items]
Debt outstanding					$ 41,700,000
Debt face amount	$ 10,000,000	$ 10,300,000							$ 56,700,000
Cancellation of debt, amount			$ 5,000,000
Gain from cancellation of debt			$ 1,300,000
Interest rate on notes (as a percent)	3.45%							6.495%
Basis spread on variable rate (as a percent)		1.50%
Interest rate during the period					1.70%	1.72%
Subordinated Debenture \| 6.75% Subordinated Notes Due 2028
Debt Instrument [Line Items]
Debt face amount				$ 65,000,000
Interest rate on notes (as a percent)				6.75%
Redemption price (percent)					100.00%
Subordinated Debenture \| Three-Month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)					1.56%
Subordinated Debenture \| Three-Month LIBOR \| 6.75% Subordinated Notes Due 2028
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)					4.095%
Capital Securities
Debt Instrument [Line Items]
Repayment of borrowings	$ 10,000,000
Senior Notes \| 5.00% Senior Notes Due 2028
Debt Instrument [Line Items]
Debt face amount				$ 5,000,000
Interest rate on notes (as a percent)				5.00%
Senior Notes \| Three-Month LIBOR \| 5.00% Senior Notes Due 2028
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)					2.345%

Borrowings - Schedule of Collateral Pledged for all Repurchase Agreements Accounted for as Secured Borrowings (Details) - U.S. Government-sponsored mortgage-backed securities - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets Sold under Agreements to Repurchase [Line Items]
Collateral pledged for all repurchase agreements accounted for as secured borrowings	$ 181,577	$ 177,102
Overnight and Continuous
Assets Sold under Agreements to Repurchase [Line Items]
Collateral pledged for all repurchase agreements accounted for as secured borrowings	181,577	175,449
Up to 30 Days
Assets Sold under Agreements to Repurchase [Line Items]
Collateral pledged for all repurchase agreements accounted for as secured borrowings	0	0
30-90 Days
Assets Sold under Agreements to Repurchase [Line Items]
Collateral pledged for all repurchase agreements accounted for as secured borrowings	0	1,653
Greater Than 90 Days
Assets Sold under Agreements to Repurchase [Line Items]
Collateral pledged for all repurchase agreements accounted for as secured borrowings	$ 0	$ 0

Borrowings - Schedule of Maturities of Long Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Securities Sold Under Repurchase Agreements
Maturities in Years Ending December 31:
2022	$ 181,577
2023	0
2024	0
2025	0
2026	0
After 2026	0
ASC 805 fair value adjustments at acquisition	0
Total	181,577
Federal Home Loan Bank Advances
Maturities in Years Ending December 31:
2022	75,097
2023	115,097
2024	10,097
2025	25,097
2026	97
After 2026	108,570
ASC 805 fair value adjustments at acquisition	0
Total	334,055
Subordinated Debentures and Term Loans
Maturities in Years Ending December 31:
2022	0
2023	0
2024	0
2025	0
2026	0
After 2026	122,012
ASC 805 fair value adjustments at acquisition	(3,394)
Total	$ 118,618	$ 118,400

Derivative Instruments and Hedging Activities - Narrative (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) interest_rate_swap	Dec. 31, 2020 USD ($) interest_rate_swap
Derivative [Line Items]
Termination value of derivatives in a net liability position	$ 32,600
Derivative collateral posted	50,800
Not Designated as Hedging Instruments
Derivative [Line Items]
Notional amount of interest rate derivatives	1,000,000	$ 985,000
Cash Flow Hedging
Derivative [Line Items]
Estimated reclassification	$ 724
Cash Flow Hedging \| Interest Rate Swap
Derivative [Line Items]
Number of interest rate derivatives held \| interest_rate_swap	4	4
Notional amount of interest rate derivatives	$ 60,000	$ 60,000
Cash Flow Hedging \| Interest Rate Swap \| Trust Preferred Debt
Derivative [Line Items]
Notional amount of interest rate derivatives	26,000
Cash Flow Hedging \| Interest Rate Swap \| Federal Home Loan Bank Advances
Derivative [Line Items]
Notional amount of interest rate derivatives	10,000
Cash Flow Hedging \| Interest Rate Swap \| Brokered Deposit
Derivative [Line Items]
Notional amount of interest rate derivatives	$ 24,000

Derivative Instruments and Hedging Activities - Fair Value of Derivative Financial Instruments and Their Classification on Balance Sheet (Details) - Interest rate contracts - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Derivatives Designated as Hedging Instruments \| Other Assets
Derivatives, Fair Value [Line Items]
Asset Derivatives	$ 0	$ 0
Derivatives Designated as Hedging Instruments \| Other Liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	835	2,018
Derivatives Not Designated as Hedging Instruments \| Other Assets
Derivatives, Fair Value [Line Items]
Asset Derivatives	41,133	74,335
Derivatives Not Designated as Hedging Instruments \| Other Liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	$ 41,133	$ 74,335

Derivative Instruments and Hedging Activities - Effect of Derivative Financial Instruments on Income Statement (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivative [Line Items]
Unrealized holding gain (loss) arising during the period	$ 138	$ (1,480)	$ (1,072)
Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income (Effective Portion)	(1,044)	(906)	(334)
Derivatives Designated as Hedging Instruments \| Interest rate contracts \| Interest expense
Derivative [Line Items]
Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income (Effective Portion)	(1,044)	(906)	$ (334)
Derivatives Designated as Hedging Instruments \| Interest rate contracts \| Cash Flow Hedging
Derivative [Line Items]
Unrealized holding gain (loss) arising during the period	$ 138	$ (1,480)

Fair Values of Financial Instruments - Fair Value Measurements of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	$ 2,344,551	$ 1,919,119
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	999	0
Interest rate swap asset	0	0
Interest rate swap liability	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	2,338,061	1,916,640
Interest rate swap asset	41,133	74,335
Interest rate swap liability	41,968	76,353
Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	5,491	2,479
Interest rate swap asset	0	0
Interest rate swap liability	0	0
Recurring \| Interest rate swap liability
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap liability	41,968	76,353
Recurring \| U.S. Government-sponsored agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	95,136	2,430
Recurring \| U.S. Treasury
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	999
Recurring \| State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	1,576,532	1,257,885
Recurring \| U.S. Government-sponsored mortgage-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	667,605	654,669
Recurring \| Corporate obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	4,279	4,135
Recurring \| Interest rate swap asset
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap asset	41,133	74,335
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Interest rate swap liability
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap liability	0	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| U.S. Government-sponsored agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	0	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| U.S. Treasury
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	999
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	0	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| U.S. Government-sponsored mortgage-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	0	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Corporate obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	0	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Interest rate swap asset
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap asset	0	0
Recurring \| Significant Other Observable Inputs (Level 2) \| Interest rate swap liability
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap liability	41,968	76,353
Recurring \| Significant Other Observable Inputs (Level 2) \| U.S. Government-sponsored agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	95,136	2,430
Recurring \| Significant Other Observable Inputs (Level 2) \| U.S. Treasury
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	0
Recurring \| Significant Other Observable Inputs (Level 2) \| State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	1,571,076	1,255,441
Recurring \| Significant Other Observable Inputs (Level 2) \| U.S. Government-sponsored mortgage-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	667,601	654,665
Recurring \| Significant Other Observable Inputs (Level 2) \| Corporate obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	4,248	4,104
Recurring \| Significant Other Observable Inputs (Level 2) \| Interest rate swap asset
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap asset	41,133	74,335
Recurring \| Significant Unobservable Inputs (Level 3) \| Interest rate swap liability
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap liability	0	0
Recurring \| Significant Unobservable Inputs (Level 3) \| U.S. Government-sponsored agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	0	0
Recurring \| Significant Unobservable Inputs (Level 3) \| U.S. Treasury
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	0
Recurring \| Significant Unobservable Inputs (Level 3) \| State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	5,456	2,444
Recurring \| Significant Unobservable Inputs (Level 3) \| U.S. Government-sponsored mortgage-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	4	4
Recurring \| Significant Unobservable Inputs (Level 3) \| Corporate obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	31	31
Recurring \| Significant Unobservable Inputs (Level 3) \| Interest rate swap asset
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap asset	$ 0	$ 0

Fair Values of Financial Instruments - Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements using Significant Unobservable Level 3 Inputs (Details) - Recurring - Available for Sale Securities - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Available for Sale Securities
Beginning Balance	$ 2,479	$ 2,893
Included in other comprehensive income	227	16
Purchases, issuances, and settlements	3,241	0
Principal payments	(456)	(430)
Ending balance	$ 5,491	$ 2,479

Fair Values of Financial Instruments - Valuation Methodologies Used for Instruments Measured at Fair Value on Non-Recurring Basis (Details) - Non-recurring - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Collateral dependent loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset fair value	$ 0	$ 0
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset fair value	0	0
Significant Other Observable Inputs (Level 2) \| Collateral dependent loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset fair value	0	0
Significant Other Observable Inputs (Level 2) \| Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset fair value	0	0
Significant Unobservable Inputs (Level 3) \| Collateral dependent loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset fair value	24,491	37,250
Significant Unobservable Inputs (Level 3) \| Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset fair value	96	544
Fair Value \| Collateral dependent loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset fair value	24,491	37,250
Fair Value \| Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset fair value	$ 96	$ 544

Fair Values of Financial Instruments - Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Other Than Goodwill (Details) - Significant Unobservable Inputs (Level 3) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Discounted cash flow \| State and municipal securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 5,456	$ 2,444
Discounted cash flow \| State and municipal securities \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Maturity Call Date	1 month	1 month
US Muni BQ curve	A-	A-
Discounted cash flow \| State and municipal securities \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Maturity Call Date	15 years	15 years
US Muni BQ curve	BBB-	BBB-
Discounted cash flow \| State and municipal securities \| Discounted cash flow \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount rate	0.0075	0.015
Discounted cash flow \| State and municipal securities \| Discounted cash flow \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount rate	0.04	0.04
Discounted cash flow \| State and municipal securities \| Weighted-average coupon \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount rate	0.037	0.039
Discounted cash flow \| Corporate obligations and U.S. Government-sponsored mortgage backed securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 35	$ 35
Discounted cash flow \| Corporate obligations and U.S. Government-sponsored mortgage backed securities \| Risk free rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Risk free rate	3 month LIBOR	3 month LIBOR
Discounted cash flow \| Corporate obligations and U.S. Government-sponsored mortgage backed securities \| Premium for illiquidity
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount rate	0.02	0.02
Discounted cash flow \| Corporate obligations and U.S. Government-sponsored mortgage backed securities \| Weighted-average coupon \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount rate	0	0
Collateral based measurements \| Collateral dependent loans
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 24,491	$ 37,250
Collateral based measurements \| Collateral dependent loans \| Collateral based measurements \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount to reflect current market conditions and ultimate collectability	0	0
Collateral based measurements \| Collateral dependent loans \| Collateral based measurements \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount to reflect current market conditions and ultimate collectability	0.10	0.10
Collateral based measurements \| Collateral dependent loans \| Collateral based measurements \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount to reflect current market conditions and ultimate collectability	0.055	0.060
Appraisals \| Other real estate owned
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 96	$ 544
Appraisals \| Other real estate owned \| Appraisals \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other real estate owned	0	0
Appraisals \| Other real estate owned \| Appraisals \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other real estate owned	0.44	0.30
Appraisals \| Other real estate owned \| Appraisals \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other real estate owned	0.435	0.262

Fair Values of Financial Instruments - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets:
Investment securities available for sale	$ 2,344,551	$ 1,919,119
Investment securities held to maturity	2,202,503	1,280,293
Loans held for sale	11,187	3,966
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Cash and cash equivalents	167,146	192,896
Interest-bearing deposits	474,154	392,305
Investment securities available for sale	999	0
Investment securities held to maturity	0	0
Loans held for sale	0	0
Loans	0	0
Federal Home Loan Bank stock	0	0
Asset Derivatives	0	0
Interest receivable	0	0
Liabilities at December 31:
Deposits	12,038,992	10,482,865
Borrowings:
Securities sold under repurchase agreements	0	0
Federal Home Loan Bank advances	0	0
Subordinated debentures and term loans	0	0
Interest rate swap liability	0	0
Interest payable	0	0
Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents	0	0
Interest-bearing deposits	0	0
Investment securities available for sale	2,338,061	1,916,640
Investment securities held to maturity	2,188,600	1,260,815
Loans held for sale	11,187	3,966
Loans	0	0
Federal Home Loan Bank stock	28,736	28,736
Asset Derivatives	41,133	74,335
Interest receivable	57,187	53,948
Liabilities at December 31:
Deposits	690,089	878,257
Borrowings:
Securities sold under repurchase agreements	181,572	177,097
Federal Home Loan Bank advances	337,005	399,991
Subordinated debentures and term loans	107,892	108,439
Interest rate swap liability	41,968	76,353
Interest payable	2,762	3,287
Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	0	0
Interest-bearing deposits	0	0
Investment securities available for sale	5,491	2,479
Investment securities held to maturity	13,903	19,478
Loans held for sale	0	0
Loans	9,068,319	9,191,628
Federal Home Loan Bank stock	0	0
Asset Derivatives	0	0
Interest receivable	0	0
Liabilities at December 31:
Deposits	0	0
Borrowings:
Securities sold under repurchase agreements	0	0
Federal Home Loan Bank advances	0	0
Subordinated debentures and term loans	0	0
Interest rate swap liability	0	0
Interest payable	0	0
Carrying Amount
Assets:
Cash and cash equivalents	167,146	192,896
Interest-bearing deposits	474,154	392,305
Investment securities available for sale	2,344,551	1,919,119
Investment securities held to maturity	2,179,802	1,227,668
Loans held for sale	11,187	3,966
Loans	9,046,464	9,112,526
Federal Home Loan Bank stock	28,736	28,736
Asset Derivatives	41,133	74,335
Interest receivable	57,187	53,948
Liabilities at December 31:
Deposits	12,732,577	11,361,610
Borrowings:
Securities sold under repurchase agreements	181,577	177,102
Federal Home Loan Bank advances	334,055	389,430
Subordinated debentures and term loans	118,618	118,380
Interest rate swap liability	41,968	76,353
Interest payable	$ 2,762	$ 3,287

Accumulated Other Comprehensive Income (Loss) - Summary of Changes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	$ 1,875,645	$ 1,786,437	$ 1,408,260
Other comprehensive income before reclassifications	(16,132)	55,577
Amounts reclassified from accumulated other comprehensive income	(3,591)	(8,615)
Period change	(19,723)	46,962	49,296
Ending balance	1,912,571	1,875,645	1,786,437
Total
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	74,836	27,874	(21,422)
Period change	(19,723)	46,962	49,296
Ending balance	55,113	74,836	27,874
Unrealized Gains (Losses) on Securities Available for Sale
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	87,988	38,872
Other comprehensive income before reclassifications	(23,732)	58,513
Amounts reclassified from accumulated other comprehensive income	(4,482)	(9,397)
Period change	(28,214)	49,116
Ending balance	59,774	87,988	38,872
Unrealized Gains (Losses) on Cash Flow Hedges
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(1,594)	(1,141)
Other comprehensive income before reclassifications	109	(1,169)
Amounts reclassified from accumulated other comprehensive income	825	716
Period change	934	(453)
Ending balance	(660)	(1,594)	(1,141)
Unrealized Gains (Losses) on Defined Benefit Plans
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(11,558)	(9,857)
Other comprehensive income before reclassifications	7,491	(1,767)
Amounts reclassified from accumulated other comprehensive income	66	66
Period change	7,557	(1,701)
Ending balance	$ (4,001)	$ (11,558)	$ (9,857)

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 55
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=122038336&loc=d3e74512-122707

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details

Accumulated Other Comprehensive Income (Loss) - Reclassifications (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items]
Net realized gains on sales of available for sale securities	$ 5,674	$ 11,895	$ 4,415
Income tax expense	(35,259)	(21,375)	(29,325)
Subordinated debentures and term loans	6,642	6,944	8,309
Salaries and employee benefits	166,995	155,937	144,037
Net income	205,531	148,600	164,460
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items]
Net income	3,591	8,615	3,140
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) \| Unrealized gains (losses) on available for sale securities
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items]
Net realized gains on sales of available for sale securities	5,674	11,895	4,415
Income tax expense	(1,192)	(2,498)	(927)
Net income	4,482	9,397	3,488
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) \| Unrealized gains (losses) on cash flow hedges
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items]
Income tax expense	219	190	70
Subordinated debentures and term loans	(1,044)	(906)	(334)
Net income	(825)	(716)	(264)
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) \| Unrealized gains (losses) on defined benefit plans
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items]
Income tax expense	18	18	22
Salaries and employee benefits	(84)	(84)	(106)
Net income	$ (66)	$ (66)	$ (84)

Regulatory Capital and Dividends - Narrative (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2021	Jan. 27, 2021	Jan. 01, 2021	Dec. 31, 2020	Sep. 03, 2019
Restructuring Cost and Reserve [Line Items]
Dividends available		$ 194,434,000
Dividend reinvestment and stock purchase plan, stockholder's maximum amount of cash payments per quarter in purchase of common stock		5,000
Retained earnings		$ (864,839,000)			$ (788,578,000)
Stock Repurchase Program
Restructuring Cost and Reserve [Line Items]
Stock authorized to be repurchased (in shares)			3,333,000			3,000,000
Stock authorized to be repurchased (in shares)	$ 75,000,000		$ 100,000,000			$ 75,000,000
Percent of outstanding shares			6.00%			5.00%
Repurchases of common stock (in shares)	1,634,437	646,102
Stock repurchased during period	$ 55,900,000	$ 25,400,000
Average price (in usd per share)	$ 34.21	$ 39.38
Impact of adopting ASC 326
Restructuring Cost and Reserve [Line Items]
Retained earnings				$ 68,040,000
PPP
Restructuring Cost and Reserve [Line Items]
PPP loans at a zero risk weight		$ 106,600,000			$ 667,100,000

Regulatory Capital and Dividends - Schedule of Actual and Required Capital (Details) $ in Thousands	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Total Risk-Based Capital
Actual	$ 1,582,481	$ 1,475,551
Prompt Corrective Action Thresholds, Adequate Capital	1,193,840	1,079,015
Tier 1 Capital to Risk-weighted Assets, Amount
Actual	1,374,240	1,282,070
Prompt Corrective Action Thresholds, Adequate Capital	966,442	873,488
Common Equity Tier One Capital to Risk-weighted Assets, Amount
Actual	1,327,634	1,235,702
Prompt Corrective Action Thresholds, Adequate Capital	795,893	719,343
Tier I Capital to Average Assets, Amount
Actual	1,374,240	1,282,070
Prompt Corrective Action Thresholds, Adequate Capital	$ 590,758	$ 536,123
Risk Based Ratios
Total Capital to Risk-weighted Assets, Actual Ratio	0.1392	0.1436
Total Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio	0.1050	0.1050
Tier 1 Capital to Risk-weighted Assets, Actual Ratio	0.1209	0.1248
Tier I Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio	0.0850	0.0850
Common Equity Tier 1 Capital to Risk-weighted Assets, Actual Ratio	0.1168	0.1202
Common Equity Tier 1 to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio	0.0700	0.0700
Leverage Ratios
Tier 1 Capital to Average Assets	0.0930	0.0957
Tier I Capital to Average Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio	0.0400	0.0400
First Merchants Bank
Total Risk-Based Capital
Actual	$ 1,453,358	$ 1,412,805
Prompt Corrective Action Thresholds, Adequate Capital	1,197,515	1,082,430
Prompt Corrective Action Thresholds, Well Capitalized	1,140,490	1,030,886
Tier 1 Capital to Risk-weighted Assets, Amount
Actual	1,309,685	1,283,922
Prompt Corrective Action Thresholds, Adequate Capital	969,417	876,253
Prompt Corrective Action Thresholds, Well Capitalized	912,392	824,708
Common Equity Tier One Capital to Risk-weighted Assets, Amount
Actual	1,309,685	1,283,922
Prompt Corrective Action Thresholds, Adequate Capital	798,343	721,620
Prompt Corrective Action Thresholds, Well Capitalized	741,319	670,076
Tier I Capital to Average Assets, Amount
Actual	1,309,685	1,283,922
Prompt Corrective Action Thresholds, Adequate Capital	589,994	535,279
Prompt Corrective Action Thresholds, Well Capitalized	$ 737,493	$ 669,098
Risk Based Ratios
Total Capital to Risk-weighted Assets, Actual Ratio	0.1274	0.1370
Total Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio	0.1050	0.1050
Total Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Well Capitalized Ratio	0.1000	0.1000
Tier 1 Capital to Risk-weighted Assets, Actual Ratio	0.1148	0.1245
Tier I Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio	0.0850	0.0850
Tier I Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Well Capitalized Ratio	0.0800	0.0800
Common Equity Tier 1 Capital to Risk-weighted Assets, Actual Ratio	0.1148	0.1245
Common Equity Tier 1 to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio	0.0700	0.0700
Common equity Tier I Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Well Capitalized Ratio	0.0650	0.0650
Leverage Ratios
Tier 1 Capital to Average Assets	0.0888	0.0959
Tier I Capital to Average Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio	0.0400	0.0400
Tier I Capital to Average Assets, Prompt Corrective Action Thresholds, Well Capitalized Ratio	0.0500	0.0500

Loan Servicing (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid balance of loans serviced for others	$ 919,136	$ 635,224	$ 514,294
Federal Home Loan Mortgage Corporation
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid balance of loans serviced for others	765,547	514,539	354,393
Fannie Mae
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid balance of loans serviced for others	60,839	69,072	82,922
Equity Bank
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid balance of loans serviced for others	60,107	0	0
Federal Home Loan Bank
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid balance of loans serviced for others	32,558	51,479	76,815
Chevy Chase Mortgage Company
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid balance of loans serviced for others	$ 85	$ 134	$ 164

Share-Based Compensation - Narrative (Details) - USD ($)		12 Months Ended
	Oct. 01, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of average closing price to be paid by employees		85.00%
Share-based compensation		$ 4,762,000	$ 4,600,000	$ 4,115,000
Estimated pre-vesting forfeiture rate (as a percent)		0.50%
Aggregate intrinsic value of stock options exercised		$ 559,000	261,000
Stock options exercised		$ 198,000	115,000	144,000
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option term		10 years
Stock options vesting percentage		100.00%
Unrecognized compensation expense		$ 0
RSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested period		3 years
Income tax expense at vesting		$ 112,000	$ 394,000
Income tax benefit at vesting				$ 363,000
Unrecognized compensation expense		$ 8,400,000
Unrecognized compensation expense expected recognition period		1 year 10 months 24 days
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense		$ 0
Grant date fair value of ESPP options	$ 25,000
Minimum \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested period		1 year
Maximum \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested period		2 years

Share-Based Compensation - Components of Awards (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax compensation expense	$ 4,762	$ 4,600	$ 4,115
Income tax benefit	(947)	(581)	(1,276)
Total share-based compensation expense, net of income taxes	3,815	4,019	2,839
Stock and ESPP Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax compensation expense	155	96	101
Income tax benefit	(92)	(29)	(70)
Total share-based compensation expense, net of income taxes	63	67	31
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax compensation expense	4,607	4,504	4,014
Income tax benefit	(855)	(552)	(1,206)
Total share-based compensation expense, net of income taxes	$ 3,752	$ 3,952	$ 2,808

Share-Based Compensation - Stock Option Activity (Details)	12 Months Ended
	Dec. 31, 2021 USD ($) $ / shares shares
Number of Shares
Beginning balance (in shares) \| shares	45,800
Exercised (in shares) \| shares	(17,300)
Ending balance (in shares) \| shares	28,500
Vested and Expected to Vest, Number of Shares \| shares	28,500
Exercisable, Number of Shares \| shares	28,500
Weighted-Average Exercise Price
Beginning balance (in dollars per share) \| $ / shares	$ 15.00
Exercised (in dollars per share) \| $ / shares	11.46
Ending balance (in dollars per share) \| $ / shares	17.14
Vested and Expected to Vest, Weighted-Average Exercise Price (in dollars per share) \| $ / shares	17.14
Exercisable, Weighted-Average Exercise Price (in dollars per share) \| $ / shares	$ 17.14
Weighted Average Remaining Contractual Term
Outstanding	1 year 6 months
Vested and Expected to Vest	1 year 6 months
Exercisable	1 year 6 months
Aggregate Intrinsic Value
Outstanding \| $	$ 705,330
Vested and Expected to Vest \| $	705,330
Exercisable \| $	$ 705,330

Share-Based Compensation - Unvested RSAs Outstanding (Details) - RSAs	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Number of Shares
Unvested RSAs, Beginning Balance (in shares) \| shares	357,883
Granted (in shares) \| shares	153,936
Forfeited (in shares) \| shares	(6,050)
Vested (in shares) \| shares	(94,510)
Unvested RSAs, Ending Balance (in shares) \| shares	411,259
Weighted-Average Grant Date Fair Value
Unvested RSAs, Beginning Balance (in dollars per share) \| $ / shares	$ 36.30
Granted (in dollars per share) \| $ / shares	42.49
Forfeited (in dollars per share) \| $ / shares	35.59
Vested (in dollars per share) \| $ / shares	48.27
Unvested RSAs, Ending Balance (in dollars per share) \| $ / shares	$ 35.86

Pension and Other Post Retirement Benefit Plans - Narrative (Details) - USD ($)		12 Months Ended
	Mar. 01, 2005	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Percentage of employees covered by plan		10.00%
Minimum participant attained age	55 years
Requisite service period (at least)	10 years
Decrease in funded status		$ 12,600,000
Accumulated other comprehensive loss, net of tax		$ 7,600,000
Decrease in discount rate		0.40%
Discount rate		2.70%	2.30%	3.20%
Increase in liability		$ 3,000,000
Liability reduction for mortality table updates		300,000
Actual return on plan assets		10,786,000	$ 7,925,000
Increase from expected return		6,500,000
Accumulated benefit obligation		74,300,000	80,800,000
Net periodic pension benefit cost		(2,094,000)	(1,419,000)	$ (909,000)
Minimum required contribution in next fiscal year		$ 0
Requisite service period		1000 hours
Employer percentage contribution		2.00%
Vesting period		5 years
Expense recognized in the period		$ 5,200,000	5,100,000	4,600,000
Fair value of plan assets		94,588,000	88,512,000	85,121,000
Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		91,979,000	85,007,000
Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		$ 2,609,000	3,505,000
MBT
Defined Benefit Plan Disclosure [Line Items]
Requisite service period (at least)		5 years
Defined benefit plan, benefit obligation		$ 3,200,000
Post retirement plan expense		$ 62,000	$ 126,000
Contribution for first 3%
Defined Benefit Plan Disclosure [Line Items]
Amount of discretionary contributions made by employer to defined contribution plan, percent		100.00%
Maximum annual contribution percentage per employee		3.00%
Contribution after first 3%
Defined Benefit Plan Disclosure [Line Items]
Amount of discretionary contributions made by employer to defined contribution plan, percent		50.00%
Maximum annual contribution percentage per employee		3.00%
Minimum \| MBT
Defined Benefit Plan Disclosure [Line Items]
Age of plan participants		55 years
Minimum \| Debt securities
Defined Benefit Plan Disclosure [Line Items]
Maturities of debt securities		40 days	15 days
Maximum \| MBT
Defined Benefit Plan Disclosure [Line Items]
Age of plan participants		65 years
Maximum \| Debt securities
Defined Benefit Plan Disclosure [Line Items]
Maturities of debt securities		7 years 8 months 12 days	6 years 8 months 12 days
Weighted Average \| Debt securities
Defined Benefit Plan Disclosure [Line Items]
Maturities of debt securities		3 years 6 months	3 years 8 months 12 days
Non-qualified plans
Defined Benefit Plan Disclosure [Line Items]
Net periodic pension benefit cost		$ 117,000	$ 165,000	$ 192,000

Pension and Other Post Retirement Benefit Plans - Schedule of Changes in Benefit Obligation, and Plan Assets, Funded Status of the Plan, Assets and Liabilities Recognized in the Balance Sheets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Change in Benefit Obligation:
Benefit obligation at beginning of year	$ 80,786	$ 76,770
Service cost	0	16	$ 39
Interest cost	1,760	2,343	2,975
Actuarial (gain) loss	(2,919)	6,957
Benefits paid	(5,353)	(5,300)
Benefit obligation at end of year	74,274	80,786	76,770
Change in Plan Assets:
Fair value of plan assets at beginning of year	88,512	85,121
Actual return on plan assets	10,786	7,925
Employer contributions	643	766
Benefits paid	(5,353)	(5,300)
End of year	94,588	88,512	$ 85,121
Funded status at end of year	20,314	7,726
Assets and Liabilities Recognized in the Balance Sheets:
Deferred tax asset	1,545	3,970
Assets	24,750	12,681
Liabilities	$ 4,436	$ 4,955

Pension and Other Post Retirement Benefit Plans - Schedule of Accumulated Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Projected benefit obligation	$ 4,436	$ 4,955
Accumulated benefit obligation	4,436	4,955
Fair value of plan assets	$ 0	$ 0

Pension and Other Post Retirement Benefit Plans - Schedule of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Service cost	$ 0	$ 16	$ 39
Interest cost	1,760	2,343	2,975
Expected return on plan assets	(4,246)	(4,086)	(4,414)
Amortization of prior service cost	87	87	87
Amortization of net loss	305	221	404
Net periodic pension benefit cost	$ (2,094)	$ (1,419)	$ (909)

Pension and Other Post Retirement Benefit Plans - Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Net periodic pension benefit cost	$ (2,094)	$ (1,419)	$ (909)
Net gain (loss)	9,460	(3,119)	4,552
Amortization of net loss	305	221	404
Amortization of prior service cost	87	87	87
Total recognized in other comprehensive income (loss)	9,852	(2,811)	5,043
Total recognized in net periodic pension benefit cost and other comprehensive income (loss)	$ 11,946	$ (1,392)	$ 5,952

Pension and Other Post Retirement Benefit Plans - Schedule of Weighted Average Assumptions Used to Determine Benefit Obligation and Benefit Cost (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Weighted-average Assumptions Used to Determine Benefit Obligation:
Discount rate	2.70%	2.30%	3.20%
Weighted-average Assumptions Used to Determine Cost:
Discount rate	2.30%	3.20%	4.30%
Expected return on plan assets	5.00%	5.00%	6.00%

Pension and Other Post Retirement Benefit Plans - Schedule of Expected Future Benefit Payments (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Retirement Benefits [Abstract]
2022	$ 5,720
2023	5,607
2024	5,366
2025	5,340
2026	5,265
After 2026	22,379
Total	$ 49,677

Pension and Other Post Retirement Benefit Plans - Schedule of Plan Assets by Category (Details)	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Actual	100.00%	100.00%
Target	100.00%	100.00%
Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Actual	2.50%	2.70%
Target	3.00%	3.00%
Equity securities
Defined Benefit Plan Disclosure [Line Items]
Actual	56.40%	53.00%
Target	53.00%	50.00%
Debt securities
Defined Benefit Plan Disclosure [Line Items]
Actual	38.60%	42.30%
Target	42.00%	45.00%
Alternative investments
Defined Benefit Plan Disclosure [Line Items]
Actual	2.50%	2.00%
Target	2.00%	2.00%

Income Tax - Reconciliation of Federal Statutory to Actual Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of Federal Statutory to Actual Tax Expense:
Federal Statutory Income Tax at 21%	$ 50,566	$ 35,695	$ 40,695
Tax-exempt Interest Income	(16,200)	(13,273)	(10,124)
Stock Compensation	(20)	338	(459)
Earnings on Life Insurance	(1,468)	(1,079)	(953)
Tax Credits	(354)	(425)	(263)
CARES Act - NOL carryback rate differential	0	(1,178)	0
State Tax	2,697	1,122	600
Other	38	175	(171)
Income Tax Expense	$ 35,259	$ 21,375	$ 29,325
Effective Tax Rate	14.60%	12.60%	15.10%

Income Tax - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Currently Payable:
Federal	$ 24,634	$ 28,463	$ 23,938
State	1,473	2,647	422
Deferred:
Federal	7,211	(8,508)	4,726
State	1,941	(1,227)	239
Income Tax Expense	$ 35,259	$ 21,375	$ 29,325

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Tax - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets:
Differences in Accounting for Loan Losses	$ 52,995	$ 31,850
Differences in Accounting for Loan Fees	2,016	4,328
Deferred Compensation	4,172	4,038
Federal & State Income Tax Loss Carryforward and Credits	747	2,089
Other	3,585	3,185
Total Assets	63,515	45,490
Liabilities:
Differences in Depreciation Methods	5,726	6,028
Differences in Accounting for Loans and Securities	3,078	2,840
Difference in Accounting for Pensions and Other Employee Benefits	4,586	1,258
State Income Tax	1,499	1,059
Net Unrealized Gain on Securities Available for Sale	15,889	23,389
Gain on FDIC Modified Whole Bank Transaction	306	359
Other	8,108	6,209
Total Liabilities	39,192	41,142
Net Deferred Tax Asset	$ 24,323	$ 4,348

Income Tax - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Valuation Allowance [Line Items]
Additional paid-in capital	$ 985,818	$ 1,005,366
Unrecorded deferred tax liability	5,300
CFS
Valuation Allowance [Line Items]
Additional paid-in capital	13,400
Ameriana
Valuation Allowance [Line Items]
Additional paid-in capital	11,900
State and Local Jurisdiction
Valuation Allowance [Line Items]
State tax loss carryforward	15,200
State deferred tax assets	$ 7,100

Net Income Per Share - Reconciliation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Earnings Per Share [Abstract]
Net income available to common stockholders	$ 205,531	$ 148,600	$ 164,460
Net income available to common stockholders	$ 205,531	$ 148,600	$ 164,460
Weighted-Average Shares
Net income available to common stockholders (in shares)	53,783,632	54,058,471	51,412,133
Effect of dilutive stock options and warrants (in shares)	200,597	161,913	149,105
Net income available to common stockholders (in shares)	53,984,229	54,220,384	51,561,238
Basic net income per share:
Net income available to common stockholders (in dollars per share)	$ 3.82	$ 2.75	$ 3.20
Diluted net income per share:
Net income available to common stockholders (in dollars per share)	$ 3.81	$ 2.74	$ 3.19

Net Income Per Share - Narrative (Details) - shares	12 Months Ended
Net Income Per Share - Narrative (Details) - shares	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Earnings Per Share [Abstract]
Stock options not included in the earnings per share calculation (in shares)	0	0	0

Condensed Financial Information (parent company only) - Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 167,146	$ 192,896
Premises and equipment	105,655	111,062
Interest receivable	57,187	53,948
Goodwill	545,385	543,918	$ 543,918
Cash surrender value of life insurance	291,041	292,745
Other assets	140,167	146,066
TOTAL ASSETS	15,453,149	14,067,210
Liabilities:
Subordinated debentures and term loans	118,618	118,380
Interest payable	2,762	3,287
Other liabilities	170,989	141,756
Total Liabilities	13,540,578	12,191,565
Stockholders' equity	1,912,571	1,875,645	$ 1,786,437	$ 1,408,260
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	15,453,149	14,067,210
Parent
Assets
Cash and due from banks	127,501	59,848
Investment in subsidiaries	1,900,787	1,930,852
Premises and equipment	274	195
Interest receivable	2	2
Goodwill	448	448
Cash surrender value of life insurance	716	861
Other assets	10,281	12,211
TOTAL ASSETS	2,040,009	2,004,417
Liabilities:
Subordinated debentures and term loans	118,618	118,380
Interest payable	864	860
Other liabilities	7,956	9,532
Total Liabilities	127,438	128,772
Stockholders' equity	1,912,571	1,875,645
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 2,040,009	$ 2,004,417

Condensed Financial Information (parent company only) - Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income
Other income	$ 3,008	$ 1,898	$ 2,068
Expenses
Interest expense	35,952	66,381	108,745
Salaries and employee benefits	166,995	155,937	144,037
Other expenses	19,300	18,001	17,804
Income tax benefit	(35,259)	(21,375)	(29,325)
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	205,531	148,600	164,460
Net income	205,531	148,600	164,460
Other comprehensive income (loss)	(19,723)	46,962	49,296
Comprehensive income	185,808	195,562	213,756
Parent
Income
Dividends from subsidiaries	161,825	70,100	125,775
Other income	(50)	(62)	172
Total income	161,775	70,038	125,947
Expenses
Interest expense	6,642	6,777	8,309
Salaries and employee benefits	3,917	3,426	3,540
Net occupancy and equipment expenses	825	745	802
Other outside services	1,001	731	1,889
Professional services	263	218	303
Other expenses	1,687	1,266	1,587
Total expenses	14,335	13,163	16,430
Income before income tax benefit and equity in undistributed income of subsidiaries	147,440	56,875	109,517
Income tax benefit	2,929	2,260	3,575
Income before equity in undistributed income of subsidiaries	150,369	59,135	113,092
Equity in undistributed income of subsidiaries	55,162	89,465	51,368
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	205,531	148,600	164,460
Net income	205,531	148,600	164,460
Other comprehensive income (loss)	(19,723)	46,962	49,296
Comprehensive income	$ 185,808	$ 195,562	$ 213,756

Condensed Financial Information (parent company only) - Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash Flow From Operating Activities:
Net income	$ 205,531	$ 148,600	$ 164,460
Adjustments to reconcile net income to net cash provided by operating activities
Share-based compensation	4,762	4,600	4,115
Net cash provided by operating activities	207,382	203,831	176,727
Cash Flow From Investing Activities:
Net cash used in investing activities	(1,469,446)	(1,552,025)	(1,006,399)
Cash Flows from Financing Activities:
Repayment of borrowings	(96,204)	(621,548)	(643,169)
Stock issued under employee benefit plans	605	639	702
Stock issued under dividend reinvestment and stock purchase plan	1,880	1,726	1,531
Stock options exercised	198	115	144
Repurchase of common stock	(25,444)	(55,912)	(19,041)
Net cash provided by financing activities	1,236,314	1,363,889	867,626
Net Change in Cash and Cash Equivalents	(25,750)	15,695	37,954
Cash and Cash Equivalents, January 1	192,896	177,201	139,247
Cash and Cash Equivalents, December 31	167,146	192,896	177,201
Parent
Cash Flow From Operating Activities:
Net income	205,531	148,600	164,460
Adjustments to reconcile net income to net cash provided by operating activities
Share-based compensation	1,563	1,502	1,339
Distributions in excess of (equity in undistributed) income of subsidiaries	(55,162)	(89,465)	(51,368)
Other adjustments	(1,173)	1,537	(6,013)
Investment in subsidiaries - operating activities	885	235	(268)
Net cash provided by operating activities	151,644	62,409	108,150
Cash Flow From Investing Activities:
Net cash received in acquisition	0	0	78
Net cash used in investing activities	0	0	78
Cash Flows from Financing Activities:
Cash dividends	(61,230)	(56,542)	(51,276)
Repayment of borrowings	0	(20,310)	0
Stock issued under employee benefit plans	605	639	702
Stock issued under dividend reinvestment and stock purchase plan	1,880	1,726	1,531
Stock options exercised	198	115	144
Repurchase of common stock	(25,444)	(55,912)	(19,041)
Net cash provided by financing activities	(83,991)	(130,284)	(67,940)
Net Change in Cash and Cash Equivalents	67,653	(67,875)	40,288
Cash and Cash Equivalents, January 1	59,848	127,723	87,435
Cash and Cash Equivalents, December 31	$ 127,501	$ 59,848	$ 127,723

Pension and Other Post Retirement Benefit Plans - Schedule of Plan Assets by Level (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	$ 94,588	$ 88,512	$ 85,121
Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	91,979	85,007
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Cash & Cash Equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	2,346	2,361
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Corporate Bonds and Notes
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	15,726	16,330
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Government Agency and Municipal Bonds and Notes
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Certificates of Deposit
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Common Stock
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	2,534	2,263
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Taxable Bond
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	18,184	17,676
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Large Cap Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	28,349	25,117
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Mid Cap Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	13,033	10,731
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Small Cap Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	5,815	4,867
Quoted Prices in Active Markets for Identical Assets (Level 1) \| International Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	3,602	3,912
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Specialty Alternative Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	2,390	1,750
Significant Other Observable Inputs (Level 2)
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	2,609	3,505
Significant Other Observable Inputs (Level 2) \| Cash & Cash Equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Other Observable Inputs (Level 2) \| Corporate Bonds and Notes
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Other Observable Inputs (Level 2) \| Government Agency and Municipal Bonds and Notes
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	1,302	2,462
Significant Other Observable Inputs (Level 2) \| Certificates of Deposit
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	1,307	1,043
Significant Other Observable Inputs (Level 2) \| Common Stock
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Other Observable Inputs (Level 2) \| Taxable Bond
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Other Observable Inputs (Level 2) \| Large Cap Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Other Observable Inputs (Level 2) \| Mid Cap Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Other Observable Inputs (Level 2) \| Small Cap Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Other Observable Inputs (Level 2) \| International Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Other Observable Inputs (Level 2) \| Specialty Alternative Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Unobservable Inputs (Level 3)
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Unobservable Inputs (Level 3) \| Cash & Cash Equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Unobservable Inputs (Level 3) \| Corporate Bonds and Notes
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Unobservable Inputs (Level 3) \| Government Agency and Municipal Bonds and Notes
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Unobservable Inputs (Level 3) \| Certificates of Deposit
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Unobservable Inputs (Level 3) \| Common Stock
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Unobservable Inputs (Level 3) \| Taxable Bond
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Unobservable Inputs (Level 3) \| Large Cap Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Unobservable Inputs (Level 3) \| Mid Cap Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Unobservable Inputs (Level 3) \| Small Cap Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Unobservable Inputs (Level 3) \| International Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Significant Unobservable Inputs (Level 3) \| Specialty Alternative Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	0	0
Fair Value
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	94,588	88,512
Fair Value \| Cash & Cash Equivalents
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	2,346	2,361
Fair Value \| Corporate Bonds and Notes
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	15,726	16,330
Fair Value \| Government Agency and Municipal Bonds and Notes
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	1,302	2,462
Fair Value \| Certificates of Deposit
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	1,307	1,043
Fair Value \| Common Stock
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	2,534	2,263
Fair Value \| Taxable Bond
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	18,184	17,676
Fair Value \| Large Cap Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	28,349	25,117
Fair Value \| Mid Cap Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	13,033	10,731
Fair Value \| Small Cap Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	5,815	4,867
Fair Value \| International Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	3,602	3,912
Fair Value \| Specialty Alternative Equity
Defined Benefit Plan Disclosure [Line Items]
Fair Value of Plan Assets	$ 2,390	$ 1,750