0000712534-24-000341 | 10-Q | XBRL Viewer

QUALIFIED AFFORDABLE HOUSING INVESTMENTS

9 Months Ended

Sep. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

QUALIFIED AFFORDABLE HOUSING INVESTMENTS

The Corporation has investments in various limited partnerships that sponsor affordable housing projects. The purpose of these investments is to earn an adequate return of capital through the receipt of low income housing tax credits and to assist the Corporation in achieving goals associated with the Community Reinvestment Act ("CRA"). These investments are included in other assets on the Consolidated Condensed Balance Sheets, with any unfunded commitments included in other liabilities. The investments are amortized as a component of income tax expense.

The following table summarizes the Corporation’s affordable housing investments as of September 30, 2024 and December 31, 2023:


	September 30, 2024				December 31, 2023
Investment Type	Investment		Unfunded Commitment		Investment		Unfunded Commitment
LIHTC	$	149,830	$	114,756	$	114,514	$	96,408

The following table summarizes the amortization expense and tax credits recognized for the Corporation’s affordable housing investments for the three and nine months ended September 30, 2024 and 2023, respectively:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Amortization expense	$	1,695	$	2,242	$	5,018	$	4,080
Tax credits recognized	1,644		1,855		4,933		3,472

GENERAL (Policies)	9 Months Ended
GENERAL (Policies)	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Financial Statement Preparation	Financial Statement Preparation The Consolidated Condensed Balance Sheet of the Corporation as of December 31, 2023, has been derived from the audited consolidated balance sheet of the Corporation as of that date. Certain information and note disclosures normally included in the Corporation’s annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission. The results of operations for the three and nine months ended September 30, 2024, are not necessarily indicative of the results to be expected for the year. 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.
Recent Accounting Changes Adopted and New Accounting Pronouncements Not Yet Adopted	Recent Accounting Changes Adopted in 2024 FASB Accounting Standards Updates - No. 2023-02 - Investments - Equity Method and Joint Ventures (Topic 323) - Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Summary - The FASB issued ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which is intended to improve the accounting and disclosures for investments in tax credit structures. The ASU is a consensus of the FASB’s Emerging Issues Task Force (“EITF”). The ASU allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. The ASU responds to stakeholder feedback that the proportional amortization method provides investors and other allocators of capital with a better understanding of the returns from investments that are made primarily for the purpose of receiving income tax credits and other income tax benefits. Reporting entities were previously permitted to apply the proportional amortization method only to qualifying tax equity investments in low-income housing tax credit (LIHTC) structures. In recent years, stakeholders asked the FASB to extend the application of the proportional amortization method to qualifying tax equity investments that generate tax credits through other programs, which resulted in the EITF addressing this issue. For public business entities, the amendments became effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. For all other entities, the amendments will become effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption is permitted for all entities in any interim period. The Corporation adopted this guidance in the first quarter of 2024 and adoption did not have a significant impact on the Corporation’s financial statements or disclosures. New Accounting Pronouncements Not Yet Adopted The Corporation continually monitors potential accounting pronouncements and the following pronouncements have been deemed to have the most applicability to the Corporation's financial statements: FASB Accounting Standards Updates - No. 2023-07 - Segment Reporting (Topic 280) — Improvements to Reportable Segment Disclosure Summary - The FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosure, which is intended to improve disclosures about a public entity’s reportable segments and addresses requests from investors and other allocators of capital for additional, more detailed information about a reportable segment’s expenses. The key amendments: •Require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss. •Require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the significant expenses disclosed and each reported measure of segment profit or loss. •Require that a public entity provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by FASB ASC Topic 280, Segment Reporting, in interim periods. •Clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit or loss. However, at least one of the reported segment profit or loss measures (or the single reported measure, if only one is disclosed) should be the measure that is most consistent with the measurement principles used in measuring the corresponding amounts in the public entity’s consolidated financial statements. •Require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. •Require that a public entity that has a single reportable segment provide all the disclosures required by the amendments in the ASU and all existing segment disclosures in Topic 280. ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, applies to all public entities that are required to report segment information in accordance with Topic 280. All public entities will be required to report segment information in accordance with the new guidance starting in annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. This ASU is not expected to have a material impact on the Corporation’s financial statements and disclosures as the Corporation has one operating segment. FASB Accounting Standards Update - No. 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures Summary - The FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures in the fourth quarter of 2023. This ASU is intended to enhance income tax disclosures to address investor requests for more information about the tax risks and opportunities present in an entity’s worldwide operations. The two primary enhancements disaggregate existing income tax disclosures related to the effective tax rate reconciliation and income taxes paid. These amendments require that public business entities on an annual basis disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The amendments also require that all entities disclose on an annual basis the amount of income taxes paid (net of refunds received) disaggregated by federal, state and foreign taxes and the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than five percent of total income taxes paid (net of refunds received). For public business entities, the amendments are effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issue. The amendments should be applied on a prospective basis. The Corporation is assessing 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.

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Allowance for Credit Losses, Off-balance Sheet (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Off-Balance Sheet, Credit Loss, Liability [Roll Forward]
Beginning balance	$ 19,500	$ 23,300	$ 19,500	$ 23,300
Provision for credit losses - unfunded commitments	0	(3,000)	0	(3,000)
Ending balance	$ 19,500	$ 20,300	$ 19,500	$ 20,300

FAIR VALUES OF FINANCIAL INSTRUMENTS - Fair Value Measurements of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	$ 1,553,496	$ 1,627,112
U.S. Government-sponsored agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	85,033	95,307
State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	984,111	1,065,171
U.S. Government-sponsored mortgage-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	472,046	454,815
Corporate obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	12,306	11,819
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	1,551,015	1,623,802
Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	2,481	3,310
Recurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	62,270	79,379
Derivative liabilities	61,386	79,008
Recurring \| U.S. Government-sponsored agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	85,033	95,307
Recurring \| State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	984,111	1,065,171
Recurring \| U.S. Government-sponsored mortgage-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	472,046	454,815
Recurring \| Corporate obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	12,306	11,819
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	0	0
Derivative liabilities	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) \| 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 \| Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	62,270	79,379
Derivative liabilities	61,386	79,008
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	85,033	95,307
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	981,665	1,061,896
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	472,042	454,811
Recurring \| Significant Other Observable Inputs (Level 2) \| Corporate obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	12,275	11,788
Recurring \| Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	0	0
Derivative liabilities	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) \| State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	2,446	3,275
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

CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative Preferred Stock	Preferred Stock Cumulative Preferred Stock	Preferred Stock Non-Cumulative Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2022			125	10,000
Beginning balance at Dec. 31, 2022	$ 2,034,770		$ 125	$ 25,000	$ 7,396	$ 1,228,626	$ 1,012,774	$ (239,151)
Beginning balance (in shares) at Dec. 31, 2022					59,170,583
Comprehensive income:
Net income	181,307						181,307
Other comprehensive income (loss), net of tax	(68,119)							(68,119)
Cash dividends on preferred stock	(1,406)						(1,406)
Cash dividends on common stock	(59,713)						(59,713)
Share-based compensation (in shares)					129,092
Share-based compensation	3,792				$ 16	3,776
Stock issued under employee benefit plans (in shares)					21,661
Stock issued under employee benefit plans	590				$ 3	587
Stock issued under dividend reinvestment and stock purchase plan (in shares)					52,061
Stock issued under dividend reinvestment and stock purchase plan	1,603				$ 7	1,596
Stock options exercised (in shares)					65,025
Stock options exercised	1,110				$ 8	1,102
Restricted shares withheld for taxes (in shares)					(40,400)
Restricted shares withheld for taxes	(1,290)				$ (5)	(1,285)
Ending balance (in shares) at Sep. 30, 2023			125	10,000
Ending balance at Sep. 30, 2023	2,092,644		$ 125	$ 25,000	$ 7,425	1,234,402	1,132,962	(307,270)
Ending balance (in shares) at Sep. 30, 2023					59,398,022
Beginning balance (in shares) at Jun. 30, 2023			125	10,000
Beginning balance at Jun. 30, 2023	2,145,565		$ 125	$ 25,000	$ 7,412	1,233,593	1,097,399	(217,964)
Beginning balance (in shares) at Jun. 30, 2023					59,297,148
Comprehensive income:
Net income	56,366						56,366
Other comprehensive income (loss), net of tax	(89,306)							(89,306)
Cash dividends on preferred stock	(468)						(468)
Cash dividends on common stock	(20,335)						(20,335)
Share-based compensation (in shares)					114,435
Share-based compensation	1,360				$ 14	1,346
Stock issued under employee benefit plans (in shares)					8,226
Stock issued under employee benefit plans	210				$ 1	209
Stock issued under dividend reinvestment and stock purchase plan (in shares)					18,524
Stock issued under dividend reinvestment and stock purchase plan	539				$ 3	536
Restricted shares withheld for taxes (in shares)					(40,311)
Restricted shares withheld for taxes	(1,287)				$ (5)	(1,282)
Ending balance (in shares) at Sep. 30, 2023			125	10,000
Ending balance at Sep. 30, 2023	2,092,644		$ 125	$ 25,000	$ 7,425	1,234,402	1,132,962	(307,270)
Ending balance (in shares) at Sep. 30, 2023					59,398,022
Beginning balance (in shares) at Dec. 31, 2023		125	125	10,000
Beginning balance at Dec. 31, 2023	$ 2,247,713		$ 125	$ 25,000	$ 7,428	1,236,506	1,154,624	(175,970)
Beginning balance (in shares) at Dec. 31, 2023	59,424,122				59,424,122
Comprehensive income:
Net income	$ 137,053						137,053
Other comprehensive income (loss), net of tax	24,145							24,145
Cash dividends on preferred stock	(1,406)						(1,406)
Cash dividends on common stock	(61,146)						(61,146)
Repurchases of common stock (in shares)					(1,481,565)
Repurchases of common stock	(49,955)				$ (185)	(49,770)
Reduction of excise tax on common stock repurchases, net of share issuances	(457)					(457)
Share-based compensation (in shares)					83,356
Share-based compensation	4,191				$ 10	4,181
Stock issued under employee benefit plans (in shares)					17,120
Stock issued under employee benefit plans	511				$ 3	508
Stock issued under dividend reinvestment and stock purchase plan (in shares)					48,793
Stock issued under dividend reinvestment and stock purchase plan	$ 1,676				$ 6	1,670
Stock options exercised (in shares)	49,084				49,084
Stock options exercised	$ 900				$ 6	894
Restricted shares withheld for taxes (in shares)					(23,795)
Restricted shares withheld for taxes	(852)				$ (3)	(849)
Ending balance (in shares) at Sep. 30, 2024		125	125	10,000
Ending balance at Sep. 30, 2024	$ 2,302,373		$ 125	$ 25,000	$ 7,265	1,192,683	1,229,125	(151,825)
Ending balance (in shares) at Sep. 30, 2024	58,117,115				58,117,115
Beginning balance (in shares) at Jun. 30, 2024			125	10,000
Beginning balance at Jun. 30, 2024	$ 2,212,525		$ 125	$ 25,000	$ 7,256	1,191,193	1,200,930	(211,979)
Beginning balance (in shares) at Jun. 30, 2024					58,045,653
Comprehensive income:
Net income	49,187						49,187
Other comprehensive income (loss), net of tax	60,154							60,154
Cash dividends on preferred stock	(468)						(468)
Cash dividends on common stock	(20,524)						(20,524)
Reduction of excise tax on common stock repurchases, net of share issuances	25					25
Share-based compensation (in shares)					67,140
Share-based compensation	1,437				$ 8	1,429
Stock issued under employee benefit plans (in shares)					5,351
Stock issued under employee benefit plans	168				$ 1	167
Stock issued under dividend reinvestment and stock purchase plan (in shares)					14,903
Stock issued under dividend reinvestment and stock purchase plan	575				$ 2	573
Stock options exercised (in shares)					6,191
Stock options exercised	88				$ 1	87
Restricted shares withheld for taxes (in shares)					(22,123)
Restricted shares withheld for taxes	(794)				$ (3)	(791)
Ending balance (in shares) at Sep. 30, 2024		125	125	10,000
Ending balance at Sep. 30, 2024	$ 2,302,373		$ 125	$ 25,000	$ 7,265	$ 1,192,683	$ 1,229,125	$ (151,825)
Ending balance (in shares) at Sep. 30, 2024	58,117,115				58,117,115

GENERAL LITIGATION AND REGULATORY EXAMINATIONS	9 Months Ended
GENERAL LITIGATION AND REGULATORY EXAMINATIONS	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
GENERAL LITIGATION AND REGULATORY EXAMINATIONS	GENERAL LITIGATION AND REGULATORY EXAMINATIONS The Corporation is subject to claims and lawsuits that arise primarily in the ordinary course of business. Additionally, the Corporation is also subject to periodic examinations by various regulatory agencies. It is the general opinion of management that the disposition or ultimate resolution of any such routine litigation or regulatory examinations will not have a material adverse effect on the consolidated financial position, results of operations and cash flow of the Corporation.

DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) $ in Millions	Sep. 30, 2024 USD ($) instrument	Dec. 31, 2023 instrument
Derivative [Line Items]
Termination value of derivatives in a net liability position	$ 12.6
Derivative collateral posted	$ 1.3
Interest rate swaps \| Derivatives in Cash Flow Hedging Relationships \| Derivatives Designated as Hedges
Derivative [Line Items]
Number of interest rate derivatives held \| instrument	0	0

NET INCOME PER COMMON SHARE (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Summary of Reconciliation of Basic and Diluted Net Income Per Share

The following tables reconcile basic and diluted net income per common share for the three and nine months ended September 30, 2024 and 2023.


	Three Months Ended September 30,
	2024					2023
	Net Income Available to Common Stockholders		Weighted-Average Common Shares	Per Share Amount		Net Income Available to Common Stockholders		Weighted-Average Common Shares	Per Share Amount
Net income available to common stockholders	$	48,719	58,074,361	$	0.84	$	55,898	59,335,877	$	0.95
Effect of potentially dilutive stock options and restricted stock awards			215,128					166,648
Diluted net income per common share	$	48,719	58,289,489	$	0.84	$	55,898	59,502,525	$	0.94
RSAs excluded from the diluted average common share calculation(1)			94,650					155,653


	Nine Months Ended September 30,
	2024					2023
	Net Income Available to Common Stockholders		Weighted-Average Common Shares	Per Share Amount		Net Income Available to Common Stockholders		Weighted-Average Common Shares	Per Share Amount
Net income available to common stockholders	$	135,647	58,413,814	$	2.32	$	179,901	59,272,401	$	3.04
Effect of potentially dilutive stock options and restricted stock awards			215,185					192,997
Diluted net income per common share	$	135,647	58,628,999	$	2.31	$	179,901	59,465,398	$	3.03
RSAs excluded from the diluted average common share calculation(1)			122,134					64,646

(1) Anti-dilution occurs when the unrecognized compensation cost per share of an RSA exceeds the market price of the Corporation's stock.

BORROWINGS - Summary of Collateral Pledged for Repurchase Agreements (Details) - U.S. Government-sponsored mortgage-backed securities - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets Sold under Agreements to Repurchase [Line Items]
Remaining Contractual Maturity of the Agreements	$ 124,894	$ 157,280
Overnight and Continuous
Assets Sold under Agreements to Repurchase [Line Items]
Remaining Contractual Maturity of the Agreements	124,894	157,280
Up to 30 Days
Assets Sold under Agreements to Repurchase [Line Items]
Remaining Contractual Maturity of the Agreements	0	0
30-90 Days
Assets Sold under Agreements to Repurchase [Line Items]
Remaining Contractual Maturity of the Agreements	0	0
Greater Than 90 Days
Assets Sold under Agreements to Repurchase [Line Items]
Remaining Contractual Maturity of the Agreements	$ 0	$ 0

FAIR VALUES OF FINANCIAL INSTRUMENTS - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Assets:
Cash and due from banks	$ 84,719	$ 112,649
Interest-bearing deposits	359,126	436,080
Investment securities available for sale	1,553,496	1,627,112
Investment securities held to maturity, net	1,823,006	1,870,374
Loans held for sale	40,652	18,934
Net loans	12,251,924	11,958,301
Federal Home Loan Bank stock	41,716	41,769
Derivative assets	62,270	79,379
Interest receivable	92,055	97,664
Liabilities:
Deposits	14,361,346	14,811,957
Borrowings:
Federal funds purchased	30,000
Securities sold under repurchase agreements	124,894	157,265
Federal Home Loan Bank advances	841,458	707,377
Subordinated debentures and other borrowings	83,242	149,995
Deposits and other liabilities held for sale	266,898
Derivative liabilities	61,386	79,008
Interest payable	18,089	18,912
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Cash and due from banks	84,719	112,649
Interest-bearing deposits	359,126	436,080
Investment securities available for sale	0	0
Investment securities held to maturity, net	0	0
Loans held for sale	0	0
Net loans	0	0
Federal Home Loan Bank stock	0	0
Derivative assets	0	0
Interest receivable	0	0
Liabilities:
Deposits	11,980,746	12,482,295
Borrowings:
Federal funds purchased	0
Securities sold under repurchase agreements	0	0
Federal Home Loan Bank advances	0	0
Subordinated debentures and other borrowings	0	0
Deposits and other liabilities held for sale	0
Derivative liabilities	0	0
Interest payable	0	0
Significant Other Observable Inputs (Level 2)
Assets:
Cash and due from banks	0	0
Interest-bearing deposits	0	0
Investment securities available for sale	1,551,015	1,623,802
Investment securities held to maturity, net	1,815,856	1,859,974
Loans held for sale	40,652	18,934
Net loans	0	0
Federal Home Loan Bank stock	41,716	41,769
Derivative assets	62,270	79,379
Interest receivable	92,055	97,664
Liabilities:
Deposits	2,380,600	2,329,662
Borrowings:
Federal funds purchased	30,000
Securities sold under repurchase agreements	124,894	157,265
Federal Home Loan Bank advances	841,458	707,377
Subordinated debentures and other borrowings	83,242	149,995
Deposits and other liabilities held for sale	266,898
Derivative liabilities	61,386	79,008
Interest payable	18,089	18,912
Significant Unobservable Inputs (Level 3)
Assets:
Cash and due from banks	0	0
Interest-bearing deposits	0	0
Investment securities available for sale	2,481	3,310
Investment securities held to maturity, net	7,150	10,400
Loans held for sale	0	0
Net loans	12,251,924	11,958,301
Federal Home Loan Bank stock	0	0
Derivative assets	0	0
Interest receivable	0	0
Liabilities:
Deposits	0	0
Borrowings:
Federal funds purchased	0
Securities sold under repurchase agreements	0	0
Federal Home Loan Bank advances	0	0
Subordinated debentures and other borrowings	0	0
Deposits and other liabilities held for sale	0
Derivative liabilities	0	0
Interest payable	0	0
Carrying Amount
Assets:
Cash and due from banks	84,719	112,649
Interest-bearing deposits	359,126	436,080
Investment securities available for sale	1,553,496	1,627,112
Investment securities held to maturity, net	2,108,649	2,184,252
Loans held for sale	40,652	18,934
Net loans	12,458,980	12,281,093
Federal Home Loan Bank stock	41,716	41,769
Derivative assets	62,270	79,379
Interest receivable	92,055	97,664
Liabilities:
Deposits	14,365,100	14,821,453
Borrowings:
Federal funds purchased	30,000
Securities sold under repurchase agreements	124,894	157,280
Federal Home Loan Bank advances	832,629	712,852
Subordinated debentures and other borrowings	93,562	158,644
Deposits and other liabilities held for sale	288,476
Derivative liabilities	61,386	79,008
Interest payable	$ 18,089	$ 18,912

SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

Stock options and Restricted Stock Awards ("RSA") have been issued to directors, officers and other management employees under the Corporation's 2019 Long-term Equity Incentive Plan, the 2024 Long-term Equity Incentive Plan, the Level One Bancorp, Inc. 2007 Stock Option 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 2024 Employee Stock Purchase Plan ("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. The 2019 Employee Stock Purchase Plan expired on June 30, 2024.

Compensation expense related to unvested share-based awards is recorded by recognizing the unamortized grant date fair value of these awards over the remaining service periods of those awards, with no change in historical reported fair values and earnings. Awards are valued at

fair value in accordance with provisions of share-based compensation guidance and are recognized on a straight-line basis over the service periods of each award. To complete the exercise of vested stock options, RSA’s and ESPP options, the Corporation generally issues new shares from its authorized but unissued share pool. Share-based compensation has been recognized as a component of salaries and benefits expense in the accompanying Consolidated Condensed Statements of Income.

Share-based compensation expense recognized in the Consolidated Condensed Statements of Income is based on awards ultimately expected to vest and is reduced for estimated forfeitures. Share-based compensation guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. Pre-vesting forfeitures were estimated to be approximately 0.05 percent for the nine months ended September 30, 2024, based on historical experience.

The following table summarizes the components of the Corporation's share-based compensation awards recorded as an expense and the income tax benefit of such awards.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Stock and ESPP Options
Pre-tax compensation expense	$	28	$	35	$	130	$	80
Income tax expense (benefit)	—		—		(40)		(62)
Stock and ESPP option expense, net of income taxes	$	28	$	35	$	90	$	18
Restricted Stock Awards
Pre-tax compensation expense	$	1,409	$	1,325	$	4,061	$	3,712
Income tax expense (benefit)	(204)		(393)		(727)		(906)
Restricted stock awards expense, net of income taxes	$	1,205	$	932	$	3,334	$	2,806
Total Share-Based Compensation
Pre-tax compensation expense	$	1,437	$	1,360	$	4,191	$	3,792
Income tax expense (benefit)	(204)		(393)		(767)		(968)
Total share-based compensation expense, net of income taxes	$	1,233	$	967	$	3,424	$	2,824

The grant date fair value of ESPP options was estimated to be approximately $28,000 at the beginning of the July 1, 2024 quarterly offering period. The ESPP options vested during the three months ending September 30, 2024, leaving no unrecognized compensation expense related to unvested ESPP options at September 30, 2024.

Stock option activity under the Corporation's stock option plans as of September 30, 2024 and changes during the nine months ended September 30, 2024, were as follows:


	Number of Shares	Weighted-Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value
Outstanding at January 1, 2024	90,075	$	20.21


Exercised	(49,084)	$	18.34

Outstanding September 30, 2024	40,991	$	22.44	1.94	$	605
Vested and Expected to Vest at September 30, 2024	40,991	$	22.44	1.94	$	605
Exercisable at September 30, 2024	40,991	$	22.44	1.94	$	605

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Corporation's closing stock price on the last trading day of the first nine months of 2024 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 September 30, 2024. The amount of aggregate intrinsic value will change based on the fair value of the Corporation's common stock.

The aggregate intrinsic value of stock options exercised during the nine months ended September 30, 2024 and September 30, 2023 was $707,000 and $1.4 million, respectively. Cash receipts of stock options exercised during the same periods were $900,000 and $1.1 million, respectively.

The following table summarizes information on unvested RSAs outstanding as of September 30, 2024:


	Number of Shares	Weighted-Average Grant Date Fair Value
Unvested RSAs at January 1, 2024	452,426	$	37.94
Granted	192,663	$	35.93
Vested	(83,356)	$	42.84
Forfeited	(6,225)	$	39.63
Unvested RSAs at September 30, 2024	555,508	$	36.49

As of September 30, 2024, unrecognized compensation expense related to RSAs was $11.9 million and is expected to be recognized over a weighted-average period of 1.9 years. The Corporation did not have any unrecognized compensation expense related to stock options as of September 30, 2024.

INVESTMENT SECURITIES - Investments in Debt and Equity Securities Reported Less than Historical Cost (Details) - Investments reported at less than historical cost - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Schedule of Investments [Line Items]
Historical cost	$ 1,629,698	$ 1,781,108
Fair value	1,437,973	1,560,554
Gross unrealized losses	$ 191,725	$ 220,554
Percentage of the Corporation's investment securities available for sale in an unrealized loss position	92.60%	95.90%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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Reference 55: http://www.xbrl.org/2003/role/disclosureRef
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Reference 56: http://www.xbrl.org/2003/role/disclosureRef
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Reference 57: http://www.xbrl.org/2003/role/disclosureRef
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Reference 58: http://www.xbrl.org/2003/role/disclosureRef
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Reference 59: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

QUALIFIED AFFORDABLE HOUSING INVESTMENTS (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Equity Method Investments and Joint Ventures [Abstract]
Investment	$ 149,830		$ 149,830		$ 114,514
Unfunded Commitment	114,756		114,756		$ 96,408
Amortization expense	1,695	$ 2,242	5,018	$ 4,080
Tax credits recognized	$ 1,644	$ 1,855	$ 4,933	$ 3,472

FAIR VALUES OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

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 assessed for impairment and 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. There were no Level 1 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.

Derivative Financial Agreements

See information regarding the Corporation’s derivative financial agreements in NOTE 5. DERIVATIVE FINANCIAL INSTRUMENTS of these Notes to Consolidated Condensed Financial Statements.

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2024, and December 31, 2023.


			Fair Value Measurements Using:
September 30, 2024	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available for sale securities:

U.S. Government-sponsored agency securities	$	85,033	$	—	$	85,033	$	—
State and municipal	984,111		—		981,665		2,446
U.S. Government-sponsored mortgage-backed securities	472,046		—		472,042		4
Corporate obligations	12,306		—		12,275		31
Derivative assets	62,270		—		62,270		—
Derivative liabilities	61,386		—		61,386		—


			Fair Value Measurements Using:
December 31, 2023	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available for sale securities:


U.S. Government-sponsored agency securities	$	95,307	$	—	$	95,307	$	—
State and municipal	1,065,171		—		1,061,896		3,275
U.S. Government-sponsored mortgage-backed securities	454,815		—		454,811		4
Corporate obligations	11,819		—		11,788		31

Derivative assets	79,379		—		79,379		—
Derivative liabilities	79,008		—		79,008		—

Level 3 Reconciliation

The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying

balance sheets using significant unobservable Level 3 inputs for the three and nine months ended September 30, 2024 and 2023.


	Available for Sale Securities
	Three Months Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Balance at beginning of the period	$	3,224	$	3,348	$	3,310	$	3,439


Included in other comprehensive income	65		(30)		76		(28)


Principal payments	(808)		(90)		(905)		(183)
Ending balance	$	2,481	$	3,228	$	2,481	$	3,228

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 September 30, 2024 or December 31, 2023.

Transfers Between Levels

There were no transfers in or out of Level 3 during the three and nine months ended September 30, 2024 and 2023.

Nonrecurring Measurements

Following is a description of valuation methodologies used for instruments measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy at September 30, 2024, and December 31, 2023.


			Fair Value Measurements Using
September 30, 2024	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral dependent loans	$	55,211	$	—	$	—	$	55,211


			Fair Value Measurements Using
December 31, 2023	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral dependent loans	$	55,020	$	—	$	—	$	55,020

Collateral Dependent Loans

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.

Unobservable (Level 3) Inputs

The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at September 30, 2024 and December 31, 2023.

September 30, 2024

Fair Value

Valuation Technique

Unobservable Inputs

Range (Weighted-Average)

State and municipal securities

2,446

Discounted cash flow

Maturity/Call date

1 month to 6 years

US Muni BQ curve

BBB

Discount rate

3.1% - 4.3%

Weighted-average coupon

3.6%

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

Discounted cash flow

Risk free rate

3 month CME Term SOFR plus 26bps

plus premium for illiquidity (basis points)

plus 200bps

Weighted-average coupon

Collateral dependent loans

55,211

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

0% - 15%

Weighted-average discount by loan balance

12.1%

December 31, 2023

Fair Value

Valuation Technique

Unobservable Inputs

Range (Weighted-Average)

State and municipal securities

3,275

Discounted cash flow

Maturity/Call date

1 month to 15 years

US Muni BQ curve

BBB

Discount rate

3.6% - 4.7%

Weighted-average coupon

3.3%

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

Discounted cash flow

Risk free rate

3 month CME Term

SOFR plus 26bps

plus premium for illiquidity (basis points)

plus 200bps

Weighted-average coupon

Collateral dependent loans

55,020

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

0% - 10%

Weighted-average discount by loan balance

4.1%

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 tables present 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 September 30, 2024 and December 31, 2023.


			September 30, 2024
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Carrying Amount		(Level 1)		(Level 2)		(Level 3)		Total Fair Value
Assets:
Cash and due from banks	$	84,719	$	84,719	$	—	$	—	$	84,719
Interest-bearing deposits	359,126		359,126		—		—		359,126
Investment securities available for sale	1,553,496		—		1,551,015		2,481		1,553,496
Investment securities held to maturity, net	2,108,649		—		1,815,856		7,150		1,823,006
Loans held for sale	40,652		—		40,652		—		40,652
Net loans	12,458,980		—		—		12,251,924		12,251,924
Federal Home Loan Bank stock	41,716		—		41,716		—		41,716
Derivative assets	62,270		—		62,270		—		62,270
Interest receivable	92,055		—		92,055		—		92,055
Liabilities:
Deposits	$	14,365,100	$	11,980,746	$	2,380,600	$	—	14,361,346
Borrowings:
Federal funds purchased	30,000		—		30,000		—		30,000
Securities sold under repurchase agreements	124,894		—		124,894		—		124,894
Federal Home Loan Bank advances	832,629		—		841,458		—		841,458
Subordinated debentures and other borrowings	93,562		—		83,242		—		83,242
Deposits and other liabilities held for sale	288,476		—		266,898		—		266,898
Derivative liabilities	61,386		—		61,386		—		61,386
Interest payable	18,089		—		18,089		—		18,089


			December 31, 2023
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Carrying Amount		(Level 1)		(Level 2)		(Level 3)		Total Fair Value
Assets:
Cash and due from banks	$	112,649	$	112,649	$	—	$	—	$	112,649
Interest-bearing deposits	436,080		436,080		—		—		436,080
Investment securities available for sale	1,627,112		—		1,623,802		3,310		1,627,112
Investment securities held to maturity, net	2,184,252		—		1,859,974		10,400		1,870,374
Loans held for sale	18,934		—		18,934		—		18,934
Net loans	12,281,093		—		—		11,958,301		11,958,301
Federal Home Loan Bank stock	41,769		—		41,769		—		41,769
Derivative assets	79,379		—		79,379		—		79,379
Interest receivable	97,664		—		97,664		—		97,664
Liabilities:
Deposits	$	14,821,453	$	12,482,295	$	2,329,662	$	—	14,811,957
Borrowings:

Securities sold under repurchase agreements	157,280		—		157,265		—		157,265
Federal Home Loan Bank advances	712,852		—		707,377		—		707,377
Subordinated debentures and other borrowings	158,644		—		149,995		—		149,995
Derivative liabilities	79,008		—		79,008		—		79,008
Interest payable	18,912		—		18,912		—		18,912

- 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

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 107
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-107

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2E
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6A
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
-SubTopic 820
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Amounts of Commitments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Loan commitments to extend credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Amounts of commitments	$ 5,493,144	$ 5,025,790
Standby letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Amounts of commitments	$ 66,043	$ 65,580

BORROWINGS (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Summary of Borrowings

The following table summarizes the Corporation’s borrowings as of September 30, 2024 and December 31, 2023:


	September 30, 2024		December 31, 2023
Federal funds purchased	$	30,000	$	—
Securities sold under repurchase agreements	124,894		157,280
Federal Home Loan Bank advances	832,629		712,852
Subordinated debentures and other borrowings	93,562		158,644
Total Borrowings	$	1,081,085	$	1,028,776

Summary of Collateral Pledged for Repurchase Agreements

The collateral pledged for all repurchase agreements that are accounted for as secured borrowings as of September 30, 2024 and December 31, 2023 were:


	September 30, 2024
	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	$	124,894	$	—	$	—	$	—	$	124,894


	December 31, 2023
	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	$	157,280	$	—	$	—	$	—	$	157,280

Summary of Contractual Maturities of Borrowings

Contractual maturities of borrowings as of September 30, 2024, are as follows:


Maturities in Years Ending December 31:	Federal Funds Purchased		Securities Sold Under Repurchase Agreements		Federal Home Loan Bank Advances		Subordinated Debentures and Term Loans
2024	$	30,000	$	124,894	$	10,000	$	1,164
2025	—		—		95,000		—
2026	—		—		75,000		—
2027	—		—		250,000		—
2028	—		—		190,000		5,000
2029 and after	—		—		212,629		90,846
ASC 805 fair value adjustments at acquisition	—		—		—		(3,448)
	$	30,000	$	124,894	$	832,629	$	93,562

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss)

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


Derivatives in Cash Flow Hedging Relationships	Amount of Loss Recognized in Other Comprehensive Income (Loss) on Derivatives (Effective Portion)
	Three Months Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Interest Rate Products	$	—	$	(66)	$	—	$	(179)

Summary of Effect of Derivative Financial Instruments on the Income Statement

The amount of gain (loss) reclassified from accumulated other comprehensive loss into income related to cash flow hedging relationships is included in the tables below for the periods indicated.

Derivatives Designated as
Hedging Instruments

Location of Gain (Loss)
Recognized Income on
Derivative

Amount of Gain Reclassed from Accumulated Other Comprehensive Loss into Income (Effective Portion)

Three Months Ended September 30, 2024

Three Months Ended September 30, 2023

Interest rate contracts

Interest Expense

—

Derivatives Designated as
Hedging Instruments

Location of Gain (Loss)
Recognized Income on
Derivative

Amount of Gain Reclassed from Accumulated Other Comprehensive Loss into Income (Effective Portion)

Nine Months Ended September 30, 2024

Nine Months Ended September 30, 2023

Interest rate contracts

Interest Expense

—

(15)

The amount of gain (loss) recognized into income related to non-designated hedging instruments is included in the tables below for the periods indicated.


Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized Income on Derivative	Amount of Gain (Loss) Recognized into Income on Derivatives
		Three Months Ended September 30, 2024		Three Months Ended September 30, 2023
Forward contracts related to mortgage loans to be delivered for sale	Net gains and fees on sales of loans	$	(966)	$	982
Interest rate lock commitments	Net gains and fees on sales of loans	30		(100)
Total net gain (loss) recognized in income		$	(936)	$	882



Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized Income on Derivative	Amount of Gain (Loss) Recognized into Income on Derivatives
		Nine Months Ended September 30, 2024		Nine Months Ended September 30, 2023
Forward contracts related to mortgage loans to be delivered for sale	Net gains and fees on sales of loans	$	(573)	$	1,691
Interest rate lock commitments	Net gains and fees on sales of loans	(15)		(133)
Total net gain/(loss) recognized in income		$	(588)	$	1,558

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

The table below presents the fair value of the Corporation’s non-designated hedges, as well as their classification on the Consolidated Condensed Balance Sheets, as of September 30, 2024, and December 31, 2023.


	September 30, 2024				December 31, 2023
	Notional Amount		Fair Value		Notional Amount		Fair Value
Included in other assets:
Interest rate swaps	$	1,333,382	$	61,207	$	1,355,947	$	78,743
Forward contracts related to mortgage loans to be delivered for sale	80,528		840		15,160		469
Interest rate lock commitments	38,639		223		22,706		167
Included in other assets	$	1,452,549	$	62,270	$	1,393,813	$	79,379
Included in other liabilities:
Interest rate swaps	$	1,332,410	$	61,248	$	1,355,947	$	78,811
Forward contracts related to mortgage loans to be delivered for sale	16,500		61		25,290		191
Interest rate lock commitments	28,135		77		1,025		6
Included in other liabilities	$	1,377,045	$	61,386	$	1,382,262	$	79,008

GENERAL	9 Months Ended
GENERAL	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL	GENERAL Financial Statement Preparation The Consolidated Condensed Balance Sheet of the Corporation as of December 31, 2023, has been derived from the audited consolidated balance sheet of the Corporation as of that date. Certain information and note disclosures normally included in the Corporation’s annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission. The results of operations for the three and nine months ended September 30, 2024, are not necessarily indicative of the results to be expected for the year. 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. Significant Accounting Policies The significant accounting policies followed by the Corporation and its wholly-owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. All adjustments, which are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported, have been included in the accompanying Consolidated Condensed Financial Statements. Recent Accounting Changes Adopted in 2024 FASB Accounting Standards Updates - No. 2023-02 - Investments - Equity Method and Joint Ventures (Topic 323) - Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Summary - The FASB issued ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, which is intended to improve the accounting and disclosures for investments in tax credit structures. The ASU is a consensus of the FASB’s Emerging Issues Task Force (“EITF”). The ASU allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. The ASU responds to stakeholder feedback that the proportional amortization method provides investors and other allocators of capital with a better understanding of the returns from investments that are made primarily for the purpose of receiving income tax credits and other income tax benefits. Reporting entities were previously permitted to apply the proportional amortization method only to qualifying tax equity investments in low-income housing tax credit (LIHTC) structures. In recent years, stakeholders asked the FASB to extend the application of the proportional amortization method to qualifying tax equity investments that generate tax credits through other programs, which resulted in the EITF addressing this issue. For public business entities, the amendments became effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. For all other entities, the amendments will become effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption is permitted for all entities in any interim period. The Corporation adopted this guidance in the first quarter of 2024 and adoption did not have a significant impact on the Corporation’s financial statements or disclosures. New Accounting Pronouncements Not Yet Adopted The Corporation continually monitors potential accounting pronouncements and the following pronouncements have been deemed to have the most applicability to the Corporation's financial statements: FASB Accounting Standards Updates - No. 2023-07 - Segment Reporting (Topic 280) — Improvements to Reportable Segment Disclosure Summary - The FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosure, which is intended to improve disclosures about a public entity’s reportable segments and addresses requests from investors and other allocators of capital for additional, more detailed information about a reportable segment’s expenses. The key amendments: •Require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss. •Require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the significant expenses disclosed and each reported measure of segment profit or loss. •Require that a public entity provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by FASB ASC Topic 280, Segment Reporting, in interim periods. •Clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit or loss. However, at least one of the reported segment profit or loss measures (or the single reported measure, if only one is disclosed) should be the measure that is most consistent with the measurement principles used in measuring the corresponding amounts in the public entity’s consolidated financial statements. •Require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. •Require that a public entity that has a single reportable segment provide all the disclosures required by the amendments in the ASU and all existing segment disclosures in Topic 280. ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, applies to all public entities that are required to report segment information in accordance with Topic 280. All public entities will be required to report segment information in accordance with the new guidance starting in annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. This ASU is not expected to have a material impact on the Corporation’s financial statements and disclosures as the Corporation has one operating segment. FASB Accounting Standards Update - No. 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures Summary - The FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures in the fourth quarter of 2023. This ASU is intended to enhance income tax disclosures to address investor requests for more information about the tax risks and opportunities present in an entity’s worldwide operations. The two primary enhancements disaggregate existing income tax disclosures related to the effective tax rate reconciliation and income taxes paid. These amendments require that public business entities on an annual basis disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The amendments also require that all entities disclose on an annual basis the amount of income taxes paid (net of refunds received) disaggregated by federal, state and foreign taxes and the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than five percent of total income taxes paid (net of refunds received). For public business entities, the amendments are effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issue. The amendments should be applied on a prospective basis. The Corporation is assessing 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.

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) loan_segment	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	$ 40,652,000		$ 40,652,000		$ 18,934,000
Loans	12,646,808,000		12,646,808,000		12,486,027,000
Interest income recognized on non-accrual loans	0	$ 0	0	$ 0
Payment default	1,700,000	0	$ 2,900,000	0
Number of loan segments \| loan_segment			10
Allowance for credit losses increase (decrease)	(1,700,000)		$ (17,100,000)
Net charge-offs	6,700,000		48,600,000
Provision for credit losses	$ 5,000,000	5,000,000	$ 31,500,000	5,000,000
Standby letters of credit usual term	2 years		2 years
Increase (decrease) in provision	$ 0	$ (3,000,000)	$ 0	$ (3,000,000)
Commercial real estate, non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,251,351,000		2,251,351,000		2,400,839,000
Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	4,041,217,000		4,041,217,000		3,670,948,000
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	814,704,000		814,704,000		957,545,000
Individuals' loans for household and other personal expenditures
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	158,480,000		158,480,000		168,388,000
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,366,943,000		2,366,943,000		2,288,921,000
Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	95,000,000		95,000,000		79,200,000
Increase (decrease) in past due loans			15,800,000
30-59 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	30,287,000		30,287,000		34,075,000
Increase (decrease) in past due loans			(3,800,000)
30-59 Days Past Due \| Commercial real estate, non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	8,680,000		8,680,000		12,995,000
Increase (decrease) in past due loans			(4,300,000)
30-59 Days Past Due \| Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,906,000		1,906,000		5,021,000
Increase (decrease) in past due loans			(3,100,000)
30-59 Days Past Due \| Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,522,000		2,522,000		0
Increase (decrease) in past due loans			2,500,000
30-59 Days Past Due \| Individuals' loans for household and other personal expenditures
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,567,000		2,567,000		635,000
Increase (decrease) in past due loans			1,900,000
30-59 Days Past Due \| Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	10,377,000		10,377,000		11,810,000
60-89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	18,773,000		18,773,000		11,189,000
Increase (decrease) in past due loans			7,600,000
60-89 Days Past Due \| Commercial real estate, non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	485,000		485,000		195,000
60-89 Days Past Due \| Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	7,805,000		7,805,000		1,622,000
60-89 Days Past Due \| Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,646,000		1,646,000		1,957,000
Increase (decrease) in past due loans			6,200,000
60-89 Days Past Due \| Individuals' loans for household and other personal expenditures
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	385,000		385,000		192,000
60-89 Days Past Due \| Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	6,029,000		6,029,000		5,472,000
90 Days or More Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	45,944,000		45,944,000		33,980,000
Increase (decrease) in past due loans			12,000,000
90 Days or More Past Due \| Commercial real estate, non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	16,404,000		16,404,000		11,465,000
Increase (decrease) in past due loans			4,900,000
90 Days or More Past Due \| Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	8,490,000		8,490,000		6,858,000
Increase (decrease) in past due loans			1,600,000
90 Days or More Past Due \| Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	0		0		0
90 Days or More Past Due \| Individuals' loans for household and other personal expenditures
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,000		2,000		8,000
90 Days or More Past Due \| Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 16,225,000		16,225,000		$ 12,143,000
Increase (decrease) in past due loans			$ 4,100,000

FAIR VALUES OF FINANCIAL INSTRUMENTS - Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements using Significant Unobservable Level 3 Inputs (Details) - Recurring - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Available for Sale Securities
Balance at beginning of the period	$ 3,224	$ 3,348	$ 3,310	$ 3,439
Included in other comprehensive income	65	(30)	76	(28)
Principal payments	(808)	(90)	(905)	(183)
Ending balance	$ 2,481	$ 3,228	$ 2,481	$ 3,228

GENERAL - Narrative (Details)	9 Months Ended
GENERAL - Narrative (Details)	Sep. 30, 2024 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	1

INVESTMENT SECURITIES - Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Amortized Cost
Due in one year or less	$ 1,809	$ 1,390
Due after one through five years	12,818	24,899
Due after five through ten years	162,996	127,948
Due after ten years	1,023,957	1,151,260
Total debt securities with a single maturity date	1,201,580	1,305,497
Total investment securities	1,742,679	1,846,840
Fair Value
Due in one year or less	1,800	1,382
Due after one through five years	12,578	23,372
Due after five through ten years	151,369	120,385
Due after ten years	915,703	1,027,158
Total debt securities with a single maturity date	1,081,450	1,172,297
Total investment securities	1,553,496	1,627,112
Amortized Cost
Due in one year or less	15,139	3,041
Due after one through five years	121,204	118,592
Due after five through ten years	165,418	135,805
Due after ten years	1,149,054	1,217,265
Total debt securities with a single maturity date	1,450,815	1,474,703
Total investment securities	2,108,894	2,184,497
Fair Value
Due in one year or less	15,096	3,043
Due after one through five years	116,480	111,723
Due after five through ten years	151,803	126,461
Due after ten years	963,930	1,018,801
Total debt securities with a single maturity date	1,247,309	1,260,028
Total investment securities	1,823,006	1,870,374
U.S. Government-sponsored mortgage-backed securities
Amortized Cost
U.S. Government-sponsored mortgage-backed securities	541,099	541,343
Fair Value
U.S. Government-sponsored mortgage-backed securities	472,046	454,815
Total investment securities	472,046	454,815
Amortized Cost
U.S. Government-sponsored mortgage-backed securities	658,079	709,794
Total investment securities	658,079	709,794
Fair Value
U.S. Government-sponsored mortgage-backed securities	575,697	610,346
Total investment securities	$ 575,697	$ 610,346

FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

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


			Fair Value Measurements Using:
September 30, 2024	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available for sale securities:

U.S. Government-sponsored agency securities	$	85,033	$	—	$	85,033	$	—
State and municipal	984,111		—		981,665		2,446
U.S. Government-sponsored mortgage-backed securities	472,046		—		472,042		4
Corporate obligations	12,306		—		12,275		31
Derivative assets	62,270		—		62,270		—
Derivative liabilities	61,386		—		61,386		—


			Fair Value Measurements Using:
December 31, 2023	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available for sale securities:


U.S. Government-sponsored agency securities	$	95,307	$	—	$	95,307	$	—
State and municipal	1,065,171		—		1,061,896		3,275
U.S. Government-sponsored mortgage-backed securities	454,815		—		454,811		4
Corporate obligations	11,819		—		11,788		31

Derivative assets	79,379		—		79,379		—
Derivative liabilities	79,008		—		79,008		—

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

The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying

balance sheets using significant unobservable Level 3 inputs for the three and nine months ended September 30, 2024 and 2023.


	Available for Sale Securities
	Three Months Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Balance at beginning of the period	$	3,224	$	3,348	$	3,310	$	3,439


Included in other comprehensive income	65		(30)		76		(28)


Principal payments	(808)		(90)		(905)		(183)
Ending balance	$	2,481	$	3,228	$	2,481	$	3,228

Summary of 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
September 30, 2024	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral dependent loans	$	55,211	$	—	$	—	$	55,211


			Fair Value Measurements Using
December 31, 2023	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral dependent loans	$	55,020	$	—	$	—	$	55,020

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

September 30, 2024

Fair Value

Valuation Technique

Unobservable Inputs

Range (Weighted-Average)

State and municipal securities

2,446

Discounted cash flow

Maturity/Call date

1 month to 6 years

US Muni BQ curve

BBB

Discount rate

3.1% - 4.3%

Weighted-average coupon

3.6%

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

Discounted cash flow

Risk free rate

3 month CME Term SOFR plus 26bps

plus premium for illiquidity (basis points)

plus 200bps

Weighted-average coupon

Collateral dependent loans

55,211

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

0% - 15%

Weighted-average discount by loan balance

12.1%

December 31, 2023

Fair Value

Valuation Technique

Unobservable Inputs

Range (Weighted-Average)

State and municipal securities

3,275

Discounted cash flow

Maturity/Call date

1 month to 15 years

US Muni BQ curve

BBB

Discount rate

3.6% - 4.7%

Weighted-average coupon

3.3%

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

Discounted cash flow

Risk free rate

3 month CME Term

SOFR plus 26bps

plus premium for illiquidity (basis points)

plus 200bps

Weighted-average coupon

Collateral dependent loans

55,020

Collateral based measurements

Discount to reflect current market conditions and ultimate collectability

0% - 10%

Weighted-average discount by loan balance

4.1%

Summary of Estimated Fair Values of Financial Instruments


			September 30, 2024
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Carrying Amount		(Level 1)		(Level 2)		(Level 3)		Total Fair Value
Assets:
Cash and due from banks	$	84,719	$	84,719	$	—	$	—	$	84,719
Interest-bearing deposits	359,126		359,126		—		—		359,126
Investment securities available for sale	1,553,496		—		1,551,015		2,481		1,553,496
Investment securities held to maturity, net	2,108,649		—		1,815,856		7,150		1,823,006
Loans held for sale	40,652		—		40,652		—		40,652
Net loans	12,458,980		—		—		12,251,924		12,251,924
Federal Home Loan Bank stock	41,716		—		41,716		—		41,716
Derivative assets	62,270		—		62,270		—		62,270
Interest receivable	92,055		—		92,055		—		92,055
Liabilities:
Deposits	$	14,365,100	$	11,980,746	$	2,380,600	$	—	14,361,346
Borrowings:
Federal funds purchased	30,000		—		30,000		—		30,000
Securities sold under repurchase agreements	124,894		—		124,894		—		124,894
Federal Home Loan Bank advances	832,629		—		841,458		—		841,458
Subordinated debentures and other borrowings	93,562		—		83,242		—		83,242
Deposits and other liabilities held for sale	288,476		—		266,898		—		266,898
Derivative liabilities	61,386		—		61,386		—		61,386
Interest payable	18,089		—		18,089		—		18,089


			December 31, 2023
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Carrying Amount		(Level 1)		(Level 2)		(Level 3)		Total Fair Value
Assets:
Cash and due from banks	$	112,649	$	112,649	$	—	$	—	$	112,649
Interest-bearing deposits	436,080		436,080		—		—		436,080
Investment securities available for sale	1,627,112		—		1,623,802		3,310		1,627,112
Investment securities held to maturity, net	2,184,252		—		1,859,974		10,400		1,870,374
Loans held for sale	18,934		—		18,934		—		18,934
Net loans	12,281,093		—		—		11,958,301		11,958,301
Federal Home Loan Bank stock	41,769		—		41,769		—		41,769
Derivative assets	79,379		—		79,379		—		79,379
Interest receivable	97,664		—		97,664		—		97,664
Liabilities:
Deposits	$	14,821,453	$	12,482,295	$	2,329,662	$	—	14,811,957
Borrowings:

Securities sold under repurchase agreements	157,280		—		157,265		—		157,265
Federal Home Loan Bank advances	712,852		—		707,377		—		707,377
Subordinated debentures and other borrowings	158,644		—		149,995		—		149,995
Derivative liabilities	79,008		—		79,008		—		79,008
Interest payable	18,912		—		18,912		—		18,912

LOANS AND ALLOWANCE FOR CREDIT LOSSES

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

LOANS AND ALLOWANCE FOR CREDIT LOSSES

Loan Portfolio and Credit Quality

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 September 30, 2024 and December 31, 2023, were $40.7 million and $18.9 million, respectively.

The following table illustrates the composition of the Corporation’s loan portfolio by loan class as of the dates indicated.


	September 30, 2024		December 31, 2023

Commercial and industrial loans	$	4,041,217	$	3,670,948
Agricultural land, production and other loans to farmers	238,743		263,414
Real estate loans:
Construction	814,704		957,545
Commercial real estate, non-owner occupied	2,251,351		2,400,839
Commercial real estate, owner occupied	1,152,751		1,162,083
Residential	2,366,943		2,288,921
Home equity	641,188		617,571
Individuals' loans for household and other personal expenditures	158,480		168,388
Public finance and other commercial loans	981,431		956,318
Loans	$	12,646,808	$	12,486,027

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) nonperforming 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 - Loans that are 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 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 charging-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 and gross charge-offs by loan class and by year of origination for the periods indicated. Consumer loans are not risk graded. For the purposes of this disclosure, 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.


	September 30, 2024
	Term Loans (amortized cost basis by origination year)												Revolving loans amortized cost basis		Revolving loans converted to term
	2024		2023		2022		2021		2020		Prior						Total
Commercial and industrial loans
Pass	$	1,110,731	$	625,113	$	259,418	$	180,272	$	62,723	$	53,350	$	1,495,641	$	136	$	3,787,384
Special Mention	14,480		9,872		8,979		2,730		2,731		369		45,459		—		84,620
Substandard	28,078		32,296		24,365		7,007		1,655		1,670		72,482		555		168,108
Doubtful	—		1,105		—		—		—		—		—		—		1,105

Total Commercial and industrial loans	1,153,289		668,386		292,762		190,009		67,109		55,389		1,613,582		691		4,041,217
Current period gross charge-offs	1,178		37,655		242		8,577		498		236		—		—		48,386
Agricultural land, production and other loans to farmers
Pass	23,646		24,039		33,909		27,872		28,250		32,445		63,526		—		233,687
Special Mention	171		—		245		—		—		444		548		—		1,408
Substandard	491		50		936		696		516		86		873		—		3,648


Total Agricultural land, production and other loans to farmers	24,308		24,089		35,090		28,568		28,766		32,975		64,947		—		238,743

Real estate loans:
Construction
Pass	186,900		227,462		174,201		73,746		6,518		8,851		12,828		—		690,506
Special Mention	35,150		26,805		18,197		13,341		—		6		—		—		93,499
Substandard	22,000		—		8,699		—		—		—		—		—		30,699


Total Construction	244,050		254,267		201,097		87,087		6,518		8,857		12,828		—		814,704

Commercial real estate, non-owner occupied
Pass	278,958		280,167		346,311		413,970		351,260		299,771		21,681		—		1,992,118
Special Mention	81,543		19,499		19,347		23,624		1,768		28,452		—		—		174,233
Substandard	31,922		5,778		8,982		6,270		19,606		1,614		—		—		74,172
Doubtful	10,828		—		—		—		—		—		—		—		10,828

Total Commercial real estate, non-owner occupied	403,251		305,444		374,640		443,864		372,634		329,837		21,681		—		2,251,351
Current period gross charge-offs	—		339		3		—		—		—		—		—		342
Commercial real estate, owner occupied
Pass	118,117		167,922		173,512		230,821		214,975		144,123		33,613		—		1,083,083
Special Mention	2,220		2,385		8,616		6,545		4,935		1,402		460		—		26,563
Substandard	6,804		12,216		5,204		8,896		2,747		7,083		155		—		43,105


Total Commercial real estate, owner occupied	127,141		182,523		187,332		246,262		222,657		152,608		34,228		—		1,152,751
Current period gross charge-offs	—		—		—		—		9		—		—		—		9
Residential
Pass	166,807		421,280		680,588		408,017		339,835		308,575		6,117		13		2,331,232
Special Mention	1,095		1,975		5,436		3,425		1,745		3,585		—		—		17,261
Substandard	528		1,478		6,836		4,226		1,066		3,991		325		—		18,450


Total Residential	168,430		424,733		692,860		415,668		342,646		316,151		6,442		13		2,366,943
Current period gross charge-offs	—		124		653		123		21		288		—		—		1,209
Home equity
Pass	6,239		6,674		25,743		54,185		11,864		4,346		516,564		6,766		632,381
Special Mention	—		—		—		421		—		33		3,772		593		4,819
Substandard	62		—		572		561		—		206		1,955		632		3,988


Total Home Equity	6,301		6,674		26,315		55,167		11,864		4,585		522,291		7,991		641,188
Current period gross charge-offs	—		10		35		23		—		264		—		—		332
Individuals' loans for household and other personal expenditures
Pass	37,606		24,496		34,052		11,078		3,097		5,215		39,613		369		155,526
Special Mention	42		461		568		1,507		80		8		286		—		2,952
Substandard	—		—		—		—		—		2		—		—		2


Total Individuals' loans for household and other personal expenditures	37,648		24,957		34,620		12,585		3,177		5,225		39,899		369		158,480
Current period gross charge-offs	130		609		397		149		44		50		—		—		1,379
Public finance and other commercial loans
Pass	72,229		53,788		204,870		197,319		151,368		301,284		573		—		981,431




Total Public finance and other commercial loans	72,229		53,788		204,870		197,319		151,368		301,284		573		—		981,431

Loans	$	2,236,647	$	1,944,861	$	2,049,586	$	1,676,529	$	1,206,739	$	1,206,911	$	2,316,471	$	9,064	$	12,646,808
Total current period gross charge-offs	$	1,308	$	38,737	$	1,330	$	8,872	$	572	$	838	$	—	$	—	$	51,657


	December 31, 2023
	Term Loans (amortized cost basis by origination year)												Revolving loans amortized		Revolving loans converted
	2023		2022		2021		2020		2019		Prior		cost basis		to term		Total
Commercial and industrial loans
Pass	$	1,175,967	$	474,601	$	253,148	$	86,226	$	47,910	$	45,020	$	1,393,756	$	60	$	3,476,688
Special Mention	34,356		3,911		1,546		5,149		2,986		241		45,994		—		94,183
Substandard	12,311		20,245		17,733		2,479		1,507		1,512		40,449		144		96,380
Doubtful	857		—		—		—		—		—		2,840		—		3,697

Total Commercial and industrial loans	1,223,491		498,757		272,427		93,854		52,403		46,773		1,483,039		204		3,670,948
Current period gross charge-offs	13,973		2,711		576		5,665		78		261		—		—		23,264
Agricultural land, production and other loans to farmers
Pass	35,633		38,145		31,511		31,048		12,995		25,462		87,534		—		262,328
Special Mention	—		266		—		—		—		122		—		—		388
Substandard	58		150		—		454		—		36		—		—		698


Total Agricultural land, production and other loans to farmers	35,691		38,561		31,511		31,502		12,995		25,620		87,534		—		263,414
Current period gross charge-offs	—		—		—		—		—		—		—		—		—
Real estate loans:
Construction
Pass	403,578		267,587		198,350		8,372		7,723		2,357		11,735		—		899,702
Special Mention	25,894		—		—		20,846		—		—		—		—		46,740
Substandard	1,451		4,330		5,322		—		—		—		—		—		11,103


Total Construction	430,923		271,917		203,672		29,218		7,723		2,357		11,735		—		957,545
Current period gross charge-offs	—		—		—		—		—		—		—		—		—
Commercial real estate, non-owner occupied
Pass	373,378		504,280		535,327		418,553		141,320		200,821		16,744		—		2,190,423
Special Mention	76,382		21,145		7,005		4,531		19,479		27,941		37		—		156,520
Substandard	20,358		10,537		219		20,236		—		2,299		247		—		53,896


Total Commercial real estate, non-owner occupied	470,118		535,962		542,551		443,320		160,799		231,061		17,028		—		2,400,839
Current period gross charge-offs	—		66		—		—		—		—		—		—		66
Commercial real estate, owner occupied
Pass	176,750		199,821		256,346		263,522		99,180		77,485		27,369		—		1,100,473
Special Mention	6,712		5,034		9,319		2,460		919		2,902		514		—		27,860
Substandard	18,092		3,712		4,183		4,545		289		2,929		—		—		33,750


Total Commercial real estate, owner occupied	201,554		208,567		269,848		270,527		100,388		83,316		27,883		—		1,162,083
Current period gross charge-offs	48		—		—		—		2		—		—		—		50
Residential
Pass	395,363		695,056		442,495		365,297		98,654		254,718		4,988		83		2,256,654
Special Mention	2,167		5,591		3,202		1,924		1,065		4,837		200		81		19,067
Substandard	804		3,708		2,529		1,199		866		4,063		31		—		13,200


Total Residential	398,334		704,355		448,226		368,420		100,585		263,618		5,219		164		2,288,921
Current period gross charge-offs	101		252		208		3		3		94		—		—		661
Home equity
Pass	9,375		29,784		61,591		11,084		1,092		3,875		484,330		5,837		606,968
Special Mention	—		715		—		1,092		15		2		5,031		149		7,004
Substandard	63		—		727		—		—		123		2,589		97		3,599


Total Home Equity	9,438		30,499		62,318		12,176		1,107		4,000		491,950		6,083		617,571
Current period gross charge-offs	69		213		224		149		193		1,596		—		—		2,444
Individuals' loans for household and other personal expenditures
Pass	35,781		49,295		28,387		6,726		2,070		5,904		38,619		772		167,554
Special Mention	184		246		138		69		—		14		176		—		827
Substandard	—		6		—		—		1		—		—		—		7


Total Individuals' loans for household and other personal expenditures	35,965		49,547		28,525		6,795		2,071		5,918		38,795		772		168,388
Current period gross charge-offs	147		770		342		77		62		156		—		—		1,554
Public finance and other commercial loans
Pass	65,357		208,347		204,863		155,132		91,619		229,355		1,645		—		956,318




Total Public finance and other commercial loans	65,357		208,347		204,863		155,132		91,619		229,355		1,645		—		956,318

Loans	$	2,870,871	$	2,546,512	$	2,063,941	$	1,410,944	$	529,690	$	892,018	$	2,164,828	$	7,223	$	12,486,027
Total current period gross charge-offs	$	14,338	$	4,012	$	1,350	$	5,894	$	338	$	2,107	$	—	$	—	$	28,039

Total past due loans equaled $95.0 million as of September 30, 2024 representing a $15.8 million increase from $79.2 million at December 31, 2023. Loans 30-59 days past due decreased $3.8 million from December 31, 2023 as commercial real estate, non-owner occupied and commercial and industrial decreased $4.3 million and $3.1 million, respectively, which was partially offset by increases in construction and individuals' loans for household and other personal expenditures of $2.5 million and $1.9 million, respectively. Loans 60-89 days past due increased $7.6 million from December 31, 2023 as commercial and industrial increased $6.2 million. Loans 90 days or more past due increased $12.0 million from December 31, 2023 as commercial and industrial, commercial real estate, non-owner occupied and residential increased $1.6 million, $4.9 million and $4.1 million, respectively. The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, as of the dates indicated:


	September 30, 2024
	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	$	4,023,016	$	1,906	$	7,805	$	8,490	$	4,041,217	$	930
Agricultural land, production and other loans to farmers	238,221		522		—		—		238,743		—
Real estate loans:
Construction	810,536		2,522		1,646		—		814,704		—
Commercial real estate, non-owner occupied	2,225,782		8,680		485		16,404		2,251,351		12,989
Commercial real estate, owner occupied	1,150,327		501		891		1,032		1,152,751		—
Residential	2,334,312		10,377		6,029		16,225		2,366,943		166
Home equity	632,653		3,212		1,532		3,791		641,188		20
Individuals' loans for household and other personal expenditures	155,526		2,567		385		2		158,480		—

Public finance and other commercial loans	981,431		—		—		—		981,431		—
Loans	$	12,551,804	$	30,287	$	18,773	$	45,944	$	12,646,808	$	14,105


	December 31, 2023
	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	$	3,657,447	$	5,021	$	1,622	$	6,858	$	3,670,948	$	86
Agricultural land, production and other loans to farmers	263,414		—		—		—		263,414		—
Real estate loans:
Construction	955,588		—		1,957		—		957,545		—
Commercial real estate, non-owner occupied	2,376,184		12,995		195		11,465		2,400,839		—
Commercial real estate, owner occupied	1,161,869		—		104		110		1,162,083		—
Residential	2,259,496		11,810		5,472		12,143		2,288,921		—
Home equity	608,948		3,614		1,647		3,362		617,571		52
Individuals' loans for household and other personal expenditures	167,553		635		192		8		168,388		—

Public finance and other commercial loans	956,284		—		—		34		956,318		34
Loans	$	12,406,783	$	34,075	$	11,189	$	33,980	$	12,486,027	$	172

Loans are reclassified to a nonaccruing 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 prior years, if any, is charged to the allowance for credit losses. Payments subsequently received on nonaccrual 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 nonaccrual loans by loan class as of the dates indicated.


	September 30, 2024				December 31, 2023
	Nonaccrual Loans		Nonaccrual Loans with no Allowance for Credit Losses		Nonaccrual Loans		Nonaccrual Loans with no Allowance for Credit Losses
Commercial and industrial loans	$	8,612	$	2,459	$	9,050	$	1,015
Agricultural land, production and other loans to farmers	81		—		58		—
Real estate loans:
Construction	—		—		520		—
Commercial real estate, non-owner occupied	23,283		10,175		11,932		11,095
Commercial real estate, owner occupied	3,237		2,577		3,041		2,257
Residential	18,905		—		25,140		—
Home equity	4,925		—		3,820		—
Individuals' loans for household and other personal expenditures	45		—		19		—

Loans	$	59,088	$	15,211	$	53,580	$	14,367

Interest income on nonaccrual loans is recognized only to the extent that cash payments are received in excess of principal due. There was no interest income recognized on nonaccrual loans for the three and nine months ended September 30, 2024 or 2023.

The tables below present the amortized cost basis of collateral dependent loans by loan class and their respective collateral type, which are individually evaluated to determine expected credit losses. The total collateral dependent loan balance increased $6.0 million, primarily related to an increase of $21.4 million in commercial real estate, non-owner occupied, partially offset by a decrease of $16.3 million in commercial and industrial, for the nine months ended September 30, 2024. The total related allowance balance decreased $4.4 million, primarily related to a decrease of $9.2 million in commercial and industrial, offset by an increase of $4.8 million in commercial real estate, non-owner occupied, for the nine months ended September 30, 2024.


	September 30, 2024
	Commercial Real Estate		Residential Real Estate		Other		Total		Allowance on Collateral Dependent Loans
Commercial and industrial loans	$	—	$	—	$	15,685	$	15,685	$	2,312

Real estate loans:
Construction	—		4		—		4		—
Commercial real estate, non-owner occupied	38,959		—		—		38,959		4,864
Commercial real estate, owner occupied	10,575		—		—		10,575		—
Residential	—		1,241		—		1,241		198
Home equity	—		206		—		206		26


Loans	$	49,534	$	1,451	$	15,685	$	66,670	$	7,400


	December 31, 2023
	Commercial Real Estate		Residential Real Estate		Other		Total		Allowance on Collateral Dependent Loans
Commercial and industrial loans	$	—	$	—	$	32,029	$	32,029	$	11,474

Real estate loans:
Construction	—		7		—		7		—
Commercial real estate, non-owner occupied	17,516		—		—		17,516		35
Commercial real estate, owner occupied	9,452		—		—		9,452		—
Residential	—		1,439		—		1,439		230
Home equity	—		223		—		223		30


Loans	$	26,968	$	1,669	$	32,029	$	60,666	$	11,769

In certain situations, the Corporation may modify the terms of a loan to a debtor experiencing financial difficulty. The modifications may include principal forgiveness, interest rate reductions, payment delays, term extensions or combinations of these modifications. The following tables present the amortized cost basis of loans at September 30, 2024 and 2023 that were both experiencing financial difficulty and modified during the three and nine months ended September 30, 2024 and 2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.


	Three Months Ended September 30, 2024
	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
	Payment Delay		Term Extension		Combination Payment Delay & Term Extension		Combination Interest Rate Reduction & Term Extension		Combination Interest Rate Reduction, Term Extension, & Payment Delay		% of Total Class of Financing Receivable
Commercial and industrial loans	$	9,600	$	10,333	$	—	$	31	$	—	0.49	%

Real estate loans:
Construction	—		915		22,000		—		—		2.81	%
Commercial real estate, non-owner occupied	—		10,254		—		10,828		—		0.94	%
Commercial real estate, owner occupied	—		5,841		—		—		—		0.51	%
Residential	493		56		—		—		304		0.04	%
Home equity	—		62		—		—		—		0.01	%


Total	$	10,093	$	27,461	$	22,000	$	10,859	$	304


	Three Months Ended September 30, 2023
	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
	Payment Delay		Term Extension		Combination Interest Rate Reduction & Term Extension		Combination Payment Delay & Term Extension		% of Total Class of Financing Receivable
Commercial and industrial loans	$	908	$	7,734	$	134	$	—		0.25	%

Real estate loans:

Commercial real estate, non-owner occupied	—		11,823		—		—			0.50	%
Commercial real estate, owner occupied	—		6,950		—		—			0.60	%

Home equity	—		63		—		—			0.01	%
Individuals' loans for household and other personal expenditures	—		—		—		1			—	%

Total	$	908	$	26,570	$	134	$	1



	Nine Months Ended September 30, 2024
	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
	Payment Delay		Term Extension		Interest Rate Reduction		Combination Payment Delay & Term Extension		Combination Interest Rate Reduction & Term Extension		Combination Interest Rate Reduction, Term Extension, & Payment Delay		% of Total Class of Financing Receivable
Commercial and industrial loans	$	11,080	$	12,880	$	247	$	17	$	31	$	—	0.60	%

Real estate loans:
Construction	—		915		—		22,000		—		—		2.81	%
Commercial real estate, non-owner occupied	—		18,933		—		—		10,828		—		1.32	%
Commercial real estate, owner occupied	—		6,208		—		—		—		—		0.54	%
Residential	1,931		341		—		283		—		529		0.13	%
Home Equity	—		62		—		162		—		—		0.03	%


Total	$	13,011	$	39,339	$	247	$	22,462	$	10,859	$	529


	Nine Months Ended September 30, 2023
	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
	Payment Delay		Term Extension		Combination Interest Rate Reduction & Term Extension		Combination Payment Delay & Term Extension		% of Total Class of Financing Receivable
Commercial and industrial loans	$	908	$	14,822	$	239	$	—	0.46	%
Agricultural land, production and other loans to farmers	—		34		—		—		0.01	%
Real estate loans:
Construction	—		13		—		—		—	%
Commercial real estate, non-owner occupied	—		11,823		5,942		—		0.75	%
Commercial real estate, owner occupied	5,602		8,642		75		—		1.24	%
Residential	—		—		—		472		0.02	%
Home equity	—		63		—		—		0.01	%
Individuals' loans for household and other personal expenditures	—		—		—		1		—	%

Total	$	6,510	$	35,397	$	6,256	$	473

The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three and nine months ended September 30, 2024 and 2023.

Three Months Ended September 30, 2024

Financial Effect of Loan Modifications

Payment Delay

Term Extension

Combination Payment Delay & Term Extension

Combination Interest Rate Reduction & Term Extension

Combination Interest Rate Reduction, Term Extension & Payment Delay

Commercial and industrial loans

Provided payment deferrals with weighted average delayed amounts of $200,000.

Extended loans by a weighted average of 6 months.

Reduced the weighted average contractual interest rate from 9.50% to 8.05% and extended loans by a weighted average of 48 months.

Real estate loans:

Construction

Extended loans by a weighted average of 6 months.

Provided payment deferrals with weighted average delayed amounts of $475,000 and extended loans by a weighted average of 4 months.

Commercial real estate, non-owner occupied

Extended loans by a weighted average of 8 months.

Reduced the weighted average contractual interest rate from 12.38% to 7.88% and extended loans by a weighted average of 8 months.

Commercial real estate, owner occupied

Extended loans by a weighted average of 8 months.

Residential

Provided payment deferrals with weighted average delayed amounts of $8,000.

Extended loans by a weighted average of 92 months.

Provided payment deferrals with weighted average delayed amounts of $14,000, extended loans by a weighted average of 149 months, and reduced the weighted average contractual interest rate from 5.73% to 3.31%.

Home equity

Extended loans by a weighted average of 6 months.

Three Months Ended September 30, 2023

Financial Effect of Loan Modifications

Payment Delay

Term Extension

Combination Interest Rate Reduction & Term Extension

Combination Payment Delay & Term Extension

Commercial and industrial loans

Provided payment deferrals with weighted average delayed amounts of $24,000.

Extended loans by a weighted average of 8 months.

Reduced the weighted average contractual interest rate from 10.75% to 7.62%. Extended loans by a weighted average of 14 months.

Real estate loans:

Commercial real estate, non-owner occupied

Extended loans by a weighted average of 11 months.

Commercial real estate, owner occupied

Extended loans by a weighted average of 4 months.

Home Equity

Extended loans by a weighted average of 5 months.

Individuals' loans for household and other personal expenditures

Provided payment deferrals with weighted average delayed amounts of $300. Extended loans by a weighted average of 3 months.

Nine Months Ended September 30, 2024

Financial Effect of Loan Modifications

Payment Delay

Term Extension

Interest Rate Reduction

Combination Payment Delay & Term Extension

Combination Interest Rate Reduction & Term Extension

Combination Interest Rate Reduction, Term Extension & Payment Delay

Commercial and industrial loans

Provided payment deferrals with weighted average delayed amounts of $180,000.

Extended loans by a weighted average of 9 months.

Reduced the weighted average contractual interest rate from 9.00% to 8.00%.

Provided payment deferrals with weighted average delayed amounts of $4,900 and extended loans by a weighted average of 3 months.

Reduced the weighted average contractual interest rate from 9.50% to 8.05%. Extended loans by a weighted average of 48 months.

Real estate loans:

Construction

Extended loans by a weighted average of 6 months.

Provided payment deferrals with weighted average delayed amounts of $475,000 and extended loans by a weighted average of 4 months.

Commercial real estate, non-owner occupied

Extended loans by a weighted average of 13 months.

Reduced the weighted average contractual interest rate from 12.38% to 7.88%. Extended loans by a weighted average of 8 months.

Commercial real estate, owner occupied

Extended loans by a weighted average of 13 months.

Residential

Provided payment deferrals with weighted average delayed amounts of $26,000.

Extended loans by a weighted average of 20 months.

Provided payment deferrals with weighted average delayed amounts of $8,000 and extended loans by a weighted average of 153 months.

Provided payment deferrals with weighted average delayed amounts of $14,000, extended loans by a weighted average of 91 months, and reduced the weighted average contractual interest rate from 5.74% to 4.03%.

Home Equity

Extended loans by a weighted average of 6 months.

Provided payment deferrals with weighted average delayed amounts of $7,800 and extended loans by a weighted average of 60 months.

Nine Months Ended September 30, 2023

Financial Effect of Loan Modifications

Payment Delay

Term Extension

Combination Interest Rate Reduction & Term Extension

Combination Payment Delay & Term Extension

Commercial and industrial loans

Provided payment deferrals with weighted average delayed amounts of $24,000

Extended loans by a weighted average of 8 months.

Reduced the weighted average contractual interest rate from 9.66% to 7.39%. Extended loans by a weighted average of 13 months.

Agricultural land, production and other loans to farmers

Extended loans by a weighted average of 60 months.

Real estate loans:

Construction

Extended loans by a weighted average of 24 months.

Commercial real estate, non-owner occupied

Extended loans by a weighted average of 10 months.

Reduced the weighted average contractual interest rate from 7.81% to 7.40%. Extended loans by a weighted average of 41 months.

Commercial real estate, owner occupied

Provided payment deferrals with weighted average delayed amounts of $4,500,000.

Extended loans by a weighted average of 4 months.

Reduced the weighted average contractual interest rate from 10.25% to 6.61%. Extended loans by a weighted average of 114 months.

Residential

Provided payment deferrals with weighted average delayed amounts $3,400. Extended loans by a weighted average of 3 months.

Home Equity

Extended loans by a weighted average of 5 months.

Provided payment deferrals with weighted average delayed amounts $300. Extended loans by a weighted average of 3 months.

The Corporation closely monitors the performance of financial difficulty modifications to understand the effectiveness of its efforts. The following tables present the performance of financial difficulty modifications in the twelve months following modification.


	September 30, 2024

	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Commercial and industrial loans	$	24,445	$	—	$	1,927	$	—	$	26,372
Agricultural land, production and other loans to farmers	22		—		—		—		22
Real estate loans:									—
Construction	22,915		—		—		—		22,915
Commercial real estate, non-owner occupied	21,082		8,680		—		1,730		31,492
Commercial real estate, owner occupied	7,523		—		—		—		7,523
Residential	1,940		—		250		1,189		3,379
Home equity	252		—		—		—		252


Total	$	78,179	$	8,680	$	2,177	$	2,919	$	91,955


	September 30, 2023

	Current		30-59 Days Past Due		60-89 Days Past Due		Total
Commercial and industrial loans	$	15,863	$	—	$	106	$	15,969
Agricultural land, production and other loans to farmers	34		—		—		34
Real estate loans:							—
Construction	13		—		—		13
Commercial real estate, non-owner occupied	17,765		—		—		17,765
Commercial real estate, owner occupied	13,157		—		1,162		14,319
Residential	472		—		—		472
Home equity	63		—		—		63
Individuals' loans for household and other personal expenditures	—		1		—		1

Total	$	47,367	$	1	$	1,268	$	48,636

During the three and nine months ended September 30, 2024, there were payment defaults of $1.7 million and $2.9 million, respectively, on loans to borrowers whose loans were modified due to financial difficulties within the previous twelve months. The payment defaults did not materially impact the allowance for credit losses on loans. There were no payment defaults during the three and nine months ended September 30, 2023 on loans that had been modified within the previous twelve months.

Upon the Corporation's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is charged-off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.

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 of 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 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, Commercial Real Estate ("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, charge-offs, and recoveries, (iv) changes in the quality of the credit review function, (v) changes in the experience, ability and depth of lending, investment, collection and other relevant management staff, (vi) changes in the volume and severity of past due financial assets, the volume of the nonaccrual assets, and the volume and severity of adversely classified or graded assets, (vii) the value of underlying collateral for loans that are not collateral dependent, and (viii) other environmental factors such as regulatory, legal and technological considerations, as well as competition and changes in the economic and business conditions that affect the collectibility of financial assets. At CECL adoption, the Corporation established certain qualitative factors that were expected to correlate to losses within the loan portfolio. During a scheduled review of qualitative factors in 2023, the Corporation determined there had not been significant evidence of correlation to losses for the qualitative factors that included i) changes in experience, ability and depth of lending management and staff; ii) changes in lending policies and procedures; iii) changes in the quality of the credit review function; iv) portfolio mix and growth; and v) industry concentration. The Corporation decided to refine these qualitative factors in order to improve our ability to assess related risk and enhance our ability to correlate to losses. The Corporation’s evaluation of the qualitative approach resulted in an insignificant change to the ACL – Loans estimate.

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.

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 ACL - Loans decreased $1.7 million and $17.1 million during the three and nine months ended September 30, 2024, respectively. Net charge-offs totaled $6.7 million and $48.6 million during the three and nine months ended September 30, 2024, respectively. Provision expense of $5.0 million and $31.5 million was recorded during the three and nine months ended September 30, 2024, respectively. The following tables summarize changes in the allowance for credit losses by loan segment for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30, 2024
	Commercial		Commercial Real Estate		Construction		Consumer & Residential		Total
Allowance for credit losses - loans
Balances, June 30, 2024	$	91,217	$	45,514	$	14,360	$	38,446	$	189,537



Provision for credit losses - loans	8,456		1,873		(2,609)		(2,720)		5,000


Recoveries on loans	505		18		—		371		894
Loans charged off	(6,375)		—		—		(1,228)		(7,603)
Balances, September 30, 2024	$	93,803	$	47,405	$	11,751	$	34,869	$	187,828


	Three Months Ended September 30, 2023
	Commercial		Commercial Real Estate		Construction		Consumer & Residential		Total
Allowance for credit losses - loans
Balances, June 30, 2023	$	108,373	$	39,157	$	30,073	$	43,544	$	221,147
Provision for credit losses - loans	3,020		4,901		140		(3,061)		5,000


Recoveries on loans	179		—		—		367		546
Loans charged off	(19,833)		—		—		(1,078)		(20,911)
Balances, September 30, 2023	$	91,739	$	44,058	$	30,213	$	39,772	$	205,782



	Nine Months Ended September 30, 2024
	Commercial		Commercial Real Estate		Construction		Consumer & Residential		Total
Allowance for credit losses - loans
Balances, December 31, 2023	$	97,348	$	44,048	$	24,823	$	38,715	$	204,934
Provision for credit losses - loans	43,249		3,476		(13,072)		(2,153)		31,500


Recoveries on loans	1,592		232		—		1,227		3,051
Loans charged off	(48,386)		(351)		—		(2,920)		(51,657)
Balances, September 30, 2024	$	93,803	$	47,405	$	11,751	$	34,869	$	187,828



	Nine Months Ended September 30, 2023
	Commercial		Commercial Real Estate		Construction		Consumer & Residential		Total
Allowance for credit losses - loans
Balances, December 31, 2022	$	102,216	$	46,839	$	28,955	$	45,267	$	223,277
Provision for credit losses - loans	9,460		(2,833)		1,258		(2,885)		5,000


Recoveries on loans	775		56		—		1,004		1,835
Loans charged off	(20,712)		(4)		—		(3,614)		(24,330)
Balances, September 30, 2023	$	91,739	$	44,058	$	30,213	$	39,772	$	205,782

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 customers 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:


	September 30, 2024		December 31, 2023
Amounts of commitments:
Loan commitments to extend credit	$	5,493,144	$	5,025,790
Standby letters of credit	$	66,043	$	65,580

The Corporation maintains an accrual for credit losses on off-balance sheet commitments using the CECL methodology. Reserves for unfunded commitments declined by $3.0 million during the three and nine months ended September 30, 2023. There was no change in the reserve for unfunded commitments during the three and nine months ended September 30, 2024. This reserve level remains appropriate and is reported in Other Liabilities as of September 30, 2024 in the Consolidated Condensed Balance Sheets.

The table below reflects the total allowance for credit losses for the off-balance sheet commitment for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Balance at beginning of the period	$	19,500	$	23,300	$	19,500	$	23,300


Provision for credit losses - unfunded commitments	—		(3,000)		—		(3,000)
Ending balance	$	19,500	$	20,300	$	19,500	$	20,300

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

Summary of Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in the balances of each component of accumulated other comprehensive loss, net of tax, as of September 30, 2024 and 2023:


	Accumulated Other Comprehensive 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, 2023	$	(173,654)	$	—	$	(2,316)	$	(175,970)
Other comprehensive income before reclassifications	16,905		—		—		16,905
Amounts reclassified from accumulated other comprehensive loss	7,240		—		—		7,240
Period change	24,145		—		—		24,145

Balance at September 30, 2024	$	(149,509)	$	—	$	(2,316)	$	(151,825)


Balance at December 31, 2022	$	(234,495)	$	130	$	(4,786)	$	(239,151)
Other comprehensive loss before reclassifications	(71,633)		(142)		—		(71,775)
Amounts reclassified from accumulated other comprehensive loss	3,644		12		—		3,656
Period change	(67,989)		(130)		—		(68,119)

Balance at September 30, 2023	$	(302,484)	$	—	$	(4,786)	$	(307,270)

Summary of Reclassification out of Accumulated Other Comprehensive Income (Loss)

The following tables present the reclassification adjustments out of accumulated other comprehensive loss that were included in net income in the Consolidated Condensed Statements of Income for the three and nine months ended September 30, 2024 and 2023.


	Amount Reclassified from Accumulated Other Comprehensive Loss For the Three Months Ended September 30,
Details about Accumulated Other Comprehensive Loss Components	2024		2023		Affected Line Item in the Statements of Income
Unrealized gains (losses) on available for sale securities (1)
Realized securities gains (losses) reclassified into income	$	(9,114)	$	(1,650)	Other income - net realized gains (losses) on sales of available for sale securities
Related income tax benefit (expense)	1,914		346		Income tax expense
	$	(7,200)	$	(1,304)

Unrealized gains (losses) on cash flow hedges (2)
Interest rate contracts	$	—	$	—	Interest expense - subordinated debentures and term loans
Related income tax benefit (expense)	—		—		Income tax expense
	$	—	$	—






Total reclassifications for the period, net of tax	$	(7,200)	$	(1,304)




	Amount Reclassified from Accumulated Other Comprehensive Loss For the Nine Months Ended September 30,
Details about Accumulated Other Comprehensive Loss Components	2024		2023		Affected Line Item in the Statements of Income
Unrealized gains (losses) on available for sale securities (1)
Realized securities gains reclassified into income	$	(9,165)	$	(4,613)	Other income - net realized gains on sales of available for sale securities
Related income tax benefit (expense)	1,925		969		Income tax expense
	$	(7,240)	$	(3,644)

Unrealized gains (losses) on cash flow hedges (2)
Interest rate contracts	$	—	$	(15)	Interest expense - subordinated debentures and term loans
Related income tax benefit (expense)	—		3		Income tax expense
	$	—	$	(12)






Total reclassifications for the period, net of tax	$	(7,240)	$	(3,656)

(1) For additional detail related to unrealized gains (losses) on available for sale securities and related amounts reclassified from accumulated other comprehensive loss see NOTE 3. INVESTMENT SECURITIES of these Notes to Consolidated Condensed Financial Statements.

(2) For additional detail related to unrealized gains (losses) on cash flow hedges and related amounts reclassified from accumulated other comprehensive loss see NOTE 5. DERIVATIVE FINANCIAL INSTRUMENTS of these Notes to Consolidated Condensed Financial Statements.

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Non-Accrual Loans by Loan Class (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Nonaccrual Loans	$ 59,088	$ 53,580
Nonaccrual Loans with no Allowance for Credit Losses	15,211	14,367
Commercial and industrial loans
Financing Receivable, Past Due [Line Items]
Nonaccrual Loans	8,612	9,050
Nonaccrual Loans with no Allowance for Credit Losses	2,459	1,015
Agricultural land, production and other loans to farmers
Financing Receivable, Past Due [Line Items]
Nonaccrual Loans	81	58
Nonaccrual Loans with no Allowance for Credit Losses	0	0
Construction
Financing Receivable, Past Due [Line Items]
Nonaccrual Loans	0	520
Nonaccrual Loans with no Allowance for Credit Losses	0	0
Commercial real estate, non-owner occupied
Financing Receivable, Past Due [Line Items]
Nonaccrual Loans	23,283	11,932
Nonaccrual Loans with no Allowance for Credit Losses	10,175	11,095
Commercial real estate, owner occupied
Financing Receivable, Past Due [Line Items]
Nonaccrual Loans	3,237	3,041
Nonaccrual Loans with no Allowance for Credit Losses	2,577	2,257
Residential
Financing Receivable, Past Due [Line Items]
Nonaccrual Loans	18,905	25,140
Nonaccrual Loans with no Allowance for Credit Losses	0	0
Home equity
Financing Receivable, Past Due [Line Items]
Nonaccrual Loans	4,925	3,820
Nonaccrual Loans with no Allowance for Credit Losses	0	0
Individuals' loans for household and other personal expenditures
Financing Receivable, Past Due [Line Items]
Nonaccrual Loans	45	19
Nonaccrual Loans with no Allowance for Credit Losses	$ 0	$ 0

DERIVATIVE FINANCIAL INSTRUMENTS - Gain (Loss) Recognized Into Income Related to Non-designated Hedging Instruments (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Derivative [Line Items]
Amount of Gain (Loss) Recognized into Income on Derivatives	$ (936)	$ 882	$ (588)	$ 1,558
Net gains and fees on sales of loans \| Forward contracts related to mortgage loans to be delivered for sale
Derivative [Line Items]
Amount of Gain (Loss) Recognized into Income on Derivatives	(966)	982	(573)	1,691
Net gains and fees on sales of loans \| Interest rate lock commitments
Derivative [Line Items]
Amount of Gain (Loss) Recognized into Income on Derivatives	$ 30	$ (100)	$ (15)	$ (133)

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Total reclassifications for the period, net of tax	$ 49,187	$ 56,366	$ 137,053	$ 181,307

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 805
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-Name Accounting Standards Codification
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-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147476176/805-60-65-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (g)(3)
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-URI https://asc.fasb.org/1943274/2147478666/740-323-65-2

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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-Paragraph 2
-Subparagraph (SX 210.5-03(20))
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/exampleRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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Reference 21: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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Reference 25: http://www.xbrl.org/2003/role/disclosureRef
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Reference 26: http://www.xbrl.org/2003/role/disclosureRef
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Reference 27: http://www.xbrl.org/2003/role/disclosureRef
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Reference 28: http://www.xbrl.org/2003/role/disclosureRef
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Reference 29: http://www.xbrl.org/2003/role/disclosureRef
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Reference 33: http://www.xbrl.org/2003/role/disclosureRef
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Reference 35: http://www.xbrl.org/2003/role/disclosureRef
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Reference 36: http://www.xbrl.org/2003/role/disclosureRef
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Reference 37: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Allowance for credit losses	$ 245	$ 245
Investment securities held to maturity - fair value	$ 1,823,006	$ 1,870,374
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)	58,117,115	59,424,122
Common Stock, outstanding (in shares)	58,117,115	59,424,122
Cumulative Preferred Stock
Preferred stock, par value (in dollars per share)	$ 1,000	$ 1,000
Preferred stock, liquidation value (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
Series A Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, liquidation value (in dollars per share)	$ 2,500	$ 2,500
Preferred Stock, authorized (in shares)	10,000	10,000
Preferred Stock, issued (in shares)	10,000	10,000
Preferred Stock, outstanding (in shares)	10,000	10,000

CONSOLIDATED CONDENSED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Loans receivable:
Taxable	$ 206,680	$ 191,705	$ 606,116	$ 550,314
Tax exempt	8,622	8,288	25,242	23,757
Investment securities:
Taxable	9,263	8,590	27,062	26,563
Tax exempt	13,509	13,947	40,733	44,296
Deposits with financial institutions	2,154	5,884	11,642	9,685
Federal Home Loan Bank stock	855	719	2,569	2,281
Total Interest Income	241,083	229,133	713,364	656,896
INTEREST EXPENSE
Deposits	98,856	85,551	296,292	209,437
Federal funds purchased	329	0	455	1,420
Securities sold under repurchase agreements	700	797	2,377	2,624
Federal Home Loan Bank advances	8,544	6,896	21,715	20,775
Subordinated debentures and other borrowings	1,544	2,506	5,781	7,303
Total Interest Expense	109,973	95,750	326,620	241,559
NET INTEREST INCOME	131,110	133,383	386,744	415,337
Provision for credit losses	5,000	2,000	31,500	2,000
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	126,110	131,383	355,244	413,337
NONINTEREST INCOME
Net gains and fees on sales of loans	6,764	5,517	15,159	11,548
Increase in cash surrender value of life insurance	1,265	1,210	4,128	3,813
Gains on life insurance benefits	1,490	551	2,148	1,332
Net realized losses on sales of available for sale securities	(9,114)	(1,650)	(9,165)	(4,613)
Other income	1,374	1,229	3,457	2,874
Total Noninterest Income	24,866	27,842	82,838	79,158
NONINTEREST EXPENSES
Salaries and employee benefits	55,223	55,566	165,730	167,778
Net occupancy	6,994	6,837	21,052	20,770
Equipment	6,949	5,698	19,774	18,005
Marketing	1,836	2,369	4,807	4,780
Outside data processing fees	7,150	6,573	21,111	19,290
Printing and office supplies	378	333	1,085	1,150
Intangible asset amortization	1,772	2,182	5,500	6,561
FDIC assessments	3,720	2,981	11,285	7,117
Other real estate owned and foreclosure expenses	942	677	1,849	1,575
Professional and other outside services	3,035	3,833	10,809	12,191
Other expenses	6,630	6,805	19,975	20,950
Total Noninterest Expenses	94,629	93,854	282,977	280,167
INCOME BEFORE INCOME TAX	56,347	65,371	155,105	212,328
Income tax expense	7,160	9,005	18,052	31,021
NET INCOME	49,187	56,366	137,053	181,307
Preferred stock dividends	468	468	1,406	1,406
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$ 48,719	$ 55,898	$ 135,647	$ 179,901
Per Share Data:
Basic Net Income Available to Common Stockholders (in dollars per share)	$ 0.84	$ 0.95	$ 2.32	$ 3.04
Diluted Net Income Available to Common Stockholders (in dollars per share)	0.84	0.94	2.31	3.03
Cash Dividends Paid (in dollars per share)	$ 0.35	$ 0.34	$ 1.04	$ 1.00
Average Diluted Common Shares Outstanding (in shares)	58,289,489	59,502,525	58,628,999	59,465,398
Service charges on deposit accounts
NONINTEREST INCOME
Other income	$ 8,361	$ 7,975	$ 24,482	$ 23,147
Fiduciary and wealth management fees
NONINTEREST INCOME
Other income	8,525	7,394	25,550	22,653
Card payment fees
NONINTEREST INCOME
Other income	5,121	4,716	14,360	14,425
Derivative hedge fees
NONINTEREST INCOME
Other income	736	516	1,488	2,336
Other customer fees
NONINTEREST INCOME
Other income	$ 344	$ 384	$ 1,231	$ 1,643

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Past Due Aging of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Loans	$ 12,646,808	$ 12,486,027
Loans > 90 Days or More Past Due And Accruing	14,105	172
Current
Financing Receivable, Past Due [Line Items]
Loans	12,551,804	12,406,783
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	30,287	34,075
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	18,773	11,189
90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	45,944	33,980
Commercial and industrial loans
Financing Receivable, Past Due [Line Items]
Loans	4,041,217	3,670,948
Loans > 90 Days or More Past Due And Accruing	930	86
Commercial and industrial loans \| Current
Financing Receivable, Past Due [Line Items]
Loans	4,023,016	3,657,447
Commercial and industrial loans \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	1,906	5,021
Commercial and industrial loans \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	7,805	1,622
Commercial and industrial loans \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	8,490	6,858
Agricultural land, production and other loans to farmers
Financing Receivable, Past Due [Line Items]
Loans	238,743	263,414
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	238,221	263,414
Agricultural land, production and other loans to farmers \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	522	0
Agricultural land, production and other loans to farmers \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Agricultural land, production and other loans to farmers \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	0	0
Construction
Financing Receivable, Past Due [Line Items]
Loans	814,704	957,545
Loans > 90 Days or More Past Due And Accruing	0	0
Construction \| Current
Financing Receivable, Past Due [Line Items]
Loans	810,536	955,588
Construction \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	2,522	0
Construction \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	1,646	1,957
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	2,251,351	2,400,839
Loans > 90 Days or More Past Due And Accruing	12,989	0
Commercial real estate, non-owner occupied \| Current
Financing Receivable, Past Due [Line Items]
Loans	2,225,782	2,376,184
Commercial real estate, non-owner occupied \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	8,680	12,995
Commercial real estate, non-owner occupied \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	485	195
Commercial real estate, non-owner occupied \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	16,404	11,465
Commercial real estate, owner occupied
Financing Receivable, Past Due [Line Items]
Loans	1,152,751	1,162,083
Loans > 90 Days or More Past Due And Accruing	0	0
Commercial real estate, owner occupied \| Current
Financing Receivable, Past Due [Line Items]
Loans	1,150,327	1,161,869
Commercial real estate, owner occupied \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	501	0
Commercial real estate, owner occupied \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	891	104
Commercial real estate, owner occupied \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	1,032	110
Residential
Financing Receivable, Past Due [Line Items]
Loans	2,366,943	2,288,921
Loans > 90 Days or More Past Due And Accruing	166	0
Residential \| Current
Financing Receivable, Past Due [Line Items]
Loans	2,334,312	2,259,496
Residential \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	10,377	11,810
Residential \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	6,029	5,472
Residential \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	16,225	12,143
Home equity
Financing Receivable, Past Due [Line Items]
Loans	641,188	617,571
Loans > 90 Days or More Past Due And Accruing	20	52
Home equity \| Current
Financing Receivable, Past Due [Line Items]
Loans	632,653	608,948
Home equity \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	3,212	3,614
Home equity \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	1,532	1,647
Home equity \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	3,791	3,362
Individuals' loans for household and other personal expenditures
Financing Receivable, Past Due [Line Items]
Loans	158,480	168,388
Loans > 90 Days or More Past Due And Accruing	0	0
Individuals' loans for household and other personal expenditures \| Current
Financing Receivable, Past Due [Line Items]
Loans	155,526	167,553
Individuals' loans for household and other personal expenditures \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	2,567	635
Individuals' loans for household and other personal expenditures \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans	385	192
Individuals' loans for household and other personal expenditures \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans	2	8
Public finance and other commercial loans
Financing Receivable, Past Due [Line Items]
Loans	981,431	956,318
Loans > 90 Days or More Past Due And Accruing	0	34
Public finance and other commercial loans \| Current
Financing Receivable, Past Due [Line Items]
Loans	981,431	956,284
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	$ 34

SHARE-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Summary of Components of Share Based Compensation Awards

The following table summarizes the components of the Corporation's share-based compensation awards recorded as an expense and the income tax benefit of such awards.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Stock and ESPP Options
Pre-tax compensation expense	$	28	$	35	$	130	$	80
Income tax expense (benefit)	—		—		(40)		(62)
Stock and ESPP option expense, net of income taxes	$	28	$	35	$	90	$	18
Restricted Stock Awards
Pre-tax compensation expense	$	1,409	$	1,325	$	4,061	$	3,712
Income tax expense (benefit)	(204)		(393)		(727)		(906)
Restricted stock awards expense, net of income taxes	$	1,205	$	932	$	3,334	$	2,806
Total Share-Based Compensation
Pre-tax compensation expense	$	1,437	$	1,360	$	4,191	$	3,792
Income tax expense (benefit)	(204)		(393)		(767)		(968)
Total share-based compensation expense, net of income taxes	$	1,233	$	967	$	3,424	$	2,824

Summary of Stock Option Activity Under Stock Option Plans

Stock option activity under the Corporation's stock option plans as of September 30, 2024 and changes during the nine months ended September 30, 2024, were as follows:


	Number of Shares	Weighted-Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value
Outstanding at January 1, 2024	90,075	$	20.21


Exercised	(49,084)	$	18.34

Outstanding September 30, 2024	40,991	$	22.44	1.94	$	605
Vested and Expected to Vest at September 30, 2024	40,991	$	22.44	1.94	$	605
Exercisable at September 30, 2024	40,991	$	22.44	1.94	$	605

Summary of Unvested RSAs Outstanding

The following table summarizes information on unvested RSAs outstanding as of September 30, 2024:


	Number of Shares	Weighted-Average Grant Date Fair Value
Unvested RSAs at January 1, 2024	452,426	$	37.94
Granted	192,663	$	35.93
Vested	(83,356)	$	42.84
Forfeited	(6,225)	$	39.63
Unvested RSAs at September 30, 2024	555,508	$	36.49

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	9 Months Ended	12 Months Ended
	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
State and municipal securities \| Discounted cash flow
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 2,446	$ 3,275
State and municipal securities \| Discounted cash flow \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Maturity/Call date	1 month	1 month
State and municipal securities \| Discounted cash flow \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Maturity/Call date	6 years	15 years
US Muni BQ curve	BBB	BBB
State and municipal securities \| Discounted cash flow \| Discount rate \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.031	0.036
State and municipal securities \| Discounted cash flow \| Discount rate \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.043	0.047
State and municipal securities \| Discounted cash flow \| Weighted-average coupon \| Weighted-average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.036	0.033
Corporate obligations and U.S. Government-sponsored mortgage-backed securities \| Discounted cash flow
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 35	$ 35
Corporate obligations and U.S. Government-sponsored mortgage-backed securities \| Discounted cash flow \| Weighted-average coupon \| Weighted-average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0	0
Corporate obligations and U.S. Government-sponsored mortgage-backed securities \| Discounted cash flow \| Risk free rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0026	0.0026
Corporate obligations and U.S. Government-sponsored mortgage-backed securities \| Discounted cash flow \| plus premium for illiquidity (basis points)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0200	0.0200
Collateral dependent loans \| Collateral based measurements
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 55,211	$ 55,020
Collateral dependent loans \| Collateral based measurements \| Discount to reflect current market conditions and ultimate collectability \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0	0
Collateral dependent loans \| Collateral based measurements \| Discount to reflect current market conditions and ultimate collectability \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.15	0.10
Collateral dependent loans \| Collateral based measurements \| Discount to reflect current market conditions and ultimate collectability \| Weighted-average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.121	0.041

INVESTMENT SECURITIES - Amortized Cost and Approximate Fair Value of Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Available for sale securities
Amortized Cost	$ 1,742,679	$ 1,846,840
Gross Unrealized Gains	2,542	826
Gross Unrealized Losses	191,725	220,554
Fair Value	1,553,496	1,627,112
Held to maturity securities
Amortized Cost	2,108,894	2,184,497
Allowance for Credit Losses	245	245
Net Carrying Amount	2,108,649	2,184,252
Gross Unrealized Gains	1,157	1,625
Gross Unrealized Losses	287,045	315,748
Fair Value	1,823,006	1,870,374
U.S. Government-sponsored agency securities
Available for sale securities
Amortized Cost	97,670	111,521
Gross Unrealized Gains	0	0
Gross Unrealized Losses	12,637	16,214
Fair Value	85,033	95,307
Held to maturity securities
Amortized Cost	361,335	374,002
Allowance for Credit Losses	0	0
Net Carrying Amount	361,335	374,002
Gross Unrealized Gains	0	0
Gross Unrealized Losses	53,432	64,159
Fair Value	307,903	309,843
State and municipal
Available for sale securities
Amortized Cost	1,090,953	1,181,029
Gross Unrealized Gains	95	364
Gross Unrealized Losses	106,937	116,222
Fair Value	984,111	1,065,171
Held to maturity securities
Amortized Cost	1,087,980	1,099,201
Allowance for Credit Losses	245	245
Net Carrying Amount	1,087,735	1,098,956
Gross Unrealized Gains	1,157	1,625
Gross Unrealized Losses	151,227	152,113
Fair Value	937,910	948,713
U.S. Government-sponsored mortgage-backed securities
Available for sale securities
Amortized Cost	541,099	541,343
Gross Unrealized Gains	2,447	462
Gross Unrealized Losses	71,500	86,990
Fair Value	472,046	454,815
Held to maturity securities
Amortized Cost	658,079	709,794
Allowance for Credit Losses	0	0
Net Carrying Amount	658,079	709,794
Gross Unrealized Gains	0	0
Gross Unrealized Losses	82,382	99,448
Fair Value	575,697	610,346
Corporate obligations
Available for sale securities
Amortized Cost	12,957	12,947
Gross Unrealized Gains	0	0
Gross Unrealized Losses	651	1,128
Fair Value	12,306	11,819
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	4	28
Fair Value	$ 1,496	$ 1,472

ACCUMULATED OTHER COMPREHENSIVE LOSS - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Accumulated Other Comprehensive Loss
Beginning balance	$ 2,212,525	$ 2,145,565	$ 2,247,713	$ 2,034,770
Other comprehensive income before reclassifications			16,905	(71,775)
Amounts reclassified from accumulated other comprehensive loss			7,240	3,656
Period change	60,154	(89,306)	24,145	(68,119)
Ending balance	2,302,373	2,092,644	2,302,373	2,092,644
Total
Accumulated Other Comprehensive Loss
Beginning balance	(211,979)	(217,964)	(175,970)	(239,151)
Period change	60,154	(89,306)	24,145	(68,119)
Ending balance	(151,825)	(307,270)	(151,825)	(307,270)
Unrealized Gains (Losses) on Securities Available for Sale
Accumulated Other Comprehensive Loss
Beginning balance			(173,654)	(234,495)
Other comprehensive income before reclassifications			16,905	(71,633)
Amounts reclassified from accumulated other comprehensive loss			7,240	3,644
Period change			24,145	(67,989)
Ending balance	(149,509)	(302,484)	(149,509)	(302,484)
Unrealized Gains (Losses) on Cash Flow Hedges
Accumulated Other Comprehensive Loss
Beginning balance			0	130
Other comprehensive income before reclassifications			0	(142)
Amounts reclassified from accumulated other comprehensive loss			0	12
Period change			0	(130)
Ending balance	0	0	0	0
Unrealized Gains (Losses) on Defined Benefit Plans
Accumulated Other Comprehensive Loss
Beginning balance			(2,316)	(4,786)
Other comprehensive income before reclassifications			0	0
Amounts reclassified from accumulated other comprehensive loss			0	0
Period change			0	0
Ending balance	$ (2,316)	$ (4,786)	$ (2,316)	$ (4,786)

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

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+ Details

SHARE-BASED COMPENSATION - Stock Option Activity (Details) - USD ($)	9 Months Ended
	Sep. 30, 2024
Number of Shares
Beginning balance (in shares)	90,075
Exercised (in shares)	(49,084)
Ending balance (in shares)	40,991
Vested and expected to vest, number of shares (in shares)	40,991
Exercisable, number of shares (in shares)	40,991
Weighted-Average Exercise Price
Beginning balance (in dollars per share)	$ 20.21
Exercised (in dollars per share)	18.34
Ending balance (in dollars per share)	22.44
Vested and expected to vest, weighted-average exercise price (in dollars per share)	22.44
Exercisable, weighted-average exercise price (in dollars per share)	$ 22.44
Weighted Average Remaining Contractual Term (in Years)
Outstanding	1 year 11 months 8 days
Vested and expected to vest	1 year 11 months 8 days
Exercisable	1 year 11 months 8 days
Aggregate Intrinsic Value
Outstanding	$ 605,000
Vested and expected to vest	605,000
Exercisable	$ 605,000

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2024	Oct. 28, 2024
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity Registrant Name	FIRST MERCHANTS CORP
Entity Incorporation, State or Country Code	IN
Entity File Number	001-41342
Entity Tax Identification Number	35-1544218
Entity Address, Address Line One	200 East Jackson Street
Entity Address, City or Town	Muncie
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	47305-2814
City Area Code	765
Local Phone Number	747-1500
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		58,671,078
Entity Central Index Key	0000712534
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common Stock, $0.125 stated value per share
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, $0.125 stated value per share
Trading Symbol	FRME
Security Exchange Name	NASDAQ
Depositary Shares, each representing a 1/100th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series A
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/100th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series A
Trading Symbol	FRMEP
Security Exchange Name	NASDAQ

NET INCOME PER COMMON SHARE

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

NET INCOME PER COMMON SHARE

Basic net income per common share is computed by dividing net income available to common stockholders by the weighted-average common shares outstanding during the reporting period. Diluted net income per common share is computed by dividing net income available to common stockholders by the combination of the weighted-average common 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 common share in the periods where the effect would be antidilutive.

The following tables reconcile basic and diluted net income per common share for the three and nine months ended September 30, 2024 and 2023.


	Three Months Ended September 30,
	2024					2023
	Net Income Available to Common Stockholders		Weighted-Average Common Shares	Per Share Amount		Net Income Available to Common Stockholders		Weighted-Average Common Shares	Per Share Amount
Net income available to common stockholders	$	48,719	58,074,361	$	0.84	$	55,898	59,335,877	$	0.95
Effect of potentially dilutive stock options and restricted stock awards			215,128					166,648
Diluted net income per common share	$	48,719	58,289,489	$	0.84	$	55,898	59,502,525	$	0.94
RSAs excluded from the diluted average common share calculation(1)			94,650					155,653


	Nine Months Ended September 30,
	2024					2023
	Net Income Available to Common Stockholders		Weighted-Average Common Shares	Per Share Amount		Net Income Available to Common Stockholders		Weighted-Average Common Shares	Per Share Amount
Net income available to common stockholders	$	135,647	58,413,814	$	2.32	$	179,901	59,272,401	$	3.04
Effect of potentially dilutive stock options and restricted stock awards			215,185					192,997
Diluted net income per common share	$	135,647	58,628,999	$	2.31	$	179,901	59,465,398	$	3.03
RSAs excluded from the diluted average common share calculation(1)			122,134					64,646

(1) Anti-dilution occurs when the unrecognized compensation cost per share of an RSA exceeds the market price of the Corporation's stock.

ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassification out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items]
Other income - net realized gains (losses) on sales of available for sale securities	$ (9,114)	$ (1,650)	$ (9,165)	$ (4,613)
Income tax expense	(7,160)	(9,005)	(18,052)	(31,021)
Total reclassifications for the period, net of tax	49,187	56,366	137,053	181,307
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period, net of tax	(7,200)	(1,304)	(7,240)	(3,656)
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]
Other income - net realized gains (losses) on sales of available for sale securities	(9,114)	(1,650)	(9,165)	(4,613)
Income tax expense	1,914	346	1,925	969
Total reclassifications for the period, net of tax	(7,200)	(1,304)	(7,240)	(3,644)
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	0	0	0	3
Total reclassifications for the period, net of tax	0	0	0	(12)
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) \| Unrealized gains (losses) on cash flow hedges \| Interest rate contracts
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items]
Interest expense - subordinated debentures and term loans	$ 0	$ 0	$ 0	$ (15)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

BORROWINGS

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

BORROWINGS

The following table summarizes the Corporation’s borrowings as of September 30, 2024 and December 31, 2023:


	September 30, 2024		December 31, 2023
Federal funds purchased	$	30,000	$	—
Securities sold under repurchase agreements	124,894		157,280
Federal Home Loan Bank advances	832,629		712,852
Subordinated debentures and other borrowings	93,562		158,644
Total Borrowings	$	1,081,085	$	1,028,776

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 the nine months ended September 30, 2024 and 2023 totaled $194.2 million and $241.9 million, respectively, and the average balance of such agreements totaled $138.1 million and $181.2 million during the same period of 2024 and 2023, respectively.

The collateral pledged for all repurchase agreements that are accounted for as secured borrowings as of September 30, 2024 and December 31, 2023 were:


	September 30, 2024
	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	$	124,894	$	—	$	—	$	—	$	124,894


	December 31, 2023
	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	$	157,280	$	—	$	—	$	—	$	157,280

Contractual maturities of borrowings as of September 30, 2024, are as follows:


Maturities in Years Ending December 31:	Federal Funds Purchased		Securities Sold Under Repurchase Agreements		Federal Home Loan Bank Advances		Subordinated Debentures and Term Loans
2024	$	30,000	$	124,894	$	10,000	$	1,164
2025	—		—		95,000		—
2026	—		—		75,000		—
2027	—		—		250,000		—
2028	—		—		190,000		5,000
2029 and after	—		—		212,629		90,846
ASC 805 fair value adjustments at acquisition	—		—		—		(3,448)
	$	30,000	$	124,894	$	832,629	$	93,562

At September 30, 2024, the outstanding FHLB advances had interest rates from 0.35 to 4.94 percent and are subject to restrictions or penalties in the event of prepayment. The total available remaining borrowing capacity from the FHLB at September 30, 2024, was $762.6 million. As of September 30, 2024, the Corporation had $305.0 million of putable advances with the FHLB.

Subordinated Debentures and Term Loans. As of September 30, 2024 and December 31, 2023, subordinated debentures and term loans totaled $93.6 million and $158.6 million, respectively.

•First Merchants Capital Trust II (“FMC Trust II”). At September 30, 2024 and December 31, 2023, the Corporation had $41.7 million of subordinated debentures issued to FMC Trust II, a wholly-owned statutory business trust. FMC Trust II was formed in July 2007 for purposes of issuing trust preferred securities to investors. At that time, it simultaneously issued and sold its common securities to the Corporation, which constituted all of the issued and outstanding common securities of FMC Trust II. The subordinated debentures, which were purchased with the proceeds of the sale of the trust’s capital securities, are the sole assets of FMC Trust II and are fully and unconditionally guaranteed by the Corporation. As of September 30, 2024 and December 31, 2023, the subordinated debentures and trust preferred securities bear interest at a variable rate equal to the three-month CME Term Secured Overnight Financing Rate ("SOFR"), plus the 0.26161 percent spread adjustment. The interest rate at September 30, 2024 and December 31, 2023 was 6.77 percent and 7.21 percent, respectively. The trust preferred securities are currently redeemable at par and without penalty, subject to the Corporation having first redeemed the related subordinated debentures, with the prior approval of the Federal Reserve if then required under applicable capital guidelines or policies. The trust preferred securities and the subordinated debentures of FMC Trust II will mature on September 15, 2037. The Corporation continues to hold all outstanding common securities of FMC Trust II.

•Ameriana Capital Trust I. At September 30, 2024 and December 31, 2023, the Corporation had $10.3 million of subordinated debentures issued to Ameriana Capital Trust I. On December 31, 2015, the Corporation acquired Ameriana Capital Trust I in conjunction with its acquisition of Ameriana Bancorp, Inc. With a trust preferred structure substantially similar to that described above for FMC Trust II, the subordinated debentures held by Ameriana Capital Trust I were purchased with the proceeds of the sale of the trust’s capital securities. As of September 30, 2024 and December 31, 2023, the subordinated debentures and trust preferred securities bear interest at a variable rate equal to the three-month CME Term SOFR, plus the 0.26161 percent spread adjustment. The interest rate at September 30, 2024 and December 31, 2023 was 6.71 percent and 7.15 percent, respectively. The trust preferred securities of Ameriana Capital Trust I are currently redeemable at par and without penalty, subject to the Corporation having first redeemed the related subordinated debentures, with the prior approval of the Federal Reserve if then required under applicable capital guidelines or policies. The trust preferred securities and the subordinated debentures of Ameriana Capital Trust I will mature in March 2036. The Corporation continues to hold all of the outstanding common securities of Ameriana Capital Trust I.

•First Merchants Senior Notes and Subordinated Notes. 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 remained fixed for the first ten (10) years and became floating thereafter. The rates converted to floating on October 30, 2023. The Corporation had 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 was 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 began with the interest payment date on October 30, 2023, or on any scheduled interest payment date thereafter. During the first quarter of 2024, the Corporation exercised its rights to redeem $40.0 million in principal and paid the debt in full on the scheduled interest payment date. Additionally, in the second quarter of 2024, the Corporation exercised its rights to redeem the remaining $25.0 million in principal and paid the debt on the scheduled interest payment date. Both redemptions were permitted under the optional redemptions provisions of the Subordinated Note Certificate representing the Subordinated Debt. The Senior Debt agreement contains certain customary representations and warranties and financial and negative covenants. As of September 30, 2024 and December 31, 2023 the Corporation was in compliance with these covenants.

•Level One Subordinated Notes. On April 1, 2022, the Corporation assumed certain subordinated notes in conjunction with its acquisition of Level One. The $30.0 million of subordinated notes issued on December 18, 2019 bear a fixed interest rate of 4.75 percent per annum, payable semiannually through December 18, 2024. The notes will bear a floating interest rate equal to the of three-month CME Term SOFR plus 3.11 percent, payable quarterly, after December 18, 2024 through maturity. The notes mature on December 18, 2029, and the Corporation has the option to redeem any or all of the subordinated notes without premium or penalty any time after December 18, 2024 or upon the occurrence of a tier 2 capital event or tax event.

•Other Borrowings. During the third quarter of 2023, the Corporation acquired a secured borrowing in conjunction with the purchase of the Indianapolis regional headquarters building. The secured borrowing bears a fixed interest rate of 3.41 percent, has a maturity date of March 2035, and had a balance of $7.2 million and $7.3 million as of September 30, 2024 and December 31, 2023, respectively. On April 1, 2022, the Corporation acquired a secured borrowing in conjunction with its acquisition of Level One. The secured borrowing related to a certain loan participation sold by Level One that did not qualify for sales treatment. The secured borrowing bears a fixed rate of 1.00 percent and had a balance of $1.2 million as of September 30, 2024 and December 31, 2023.

Line of Credit. As of September 30, 2024, there was no outstanding balance on the line of credit.

•U.S. Bank, N.A. On September 30, 2024, the Corporation entered into a Credit Agreement with U.S. Bank, N.A. Under the terms of the Credit Agreement, the Lender has provided the Corporation with a revolving line of credit of up to $75.0 million. The outstanding principal balance under the Credit Facility bears interest at a variable rate equal to the one-month Term SOFR rate plus 2.25 percent. Interest on the outstanding balance is payable quarterly, and the Credit Facility has a maturity date of September 30, 2025. Additionally, the Corporation is subject to a non-refundable facility fee equal to 0.40 percent per annum on the average daily unused amount of the Credit Facility, payable quarterly. The Credit Agreement contains customary representations, warranties and covenants. As of September 30, 2024, the Corporation's outstanding principal balance under the Credit Facility was zero and the Corporation was in compliance with all 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

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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

DERIVATIVE FINANCIAL INSTRUMENTS - Amount of Loss Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Derivative [Line Items]
Amount of Loss Recognized in Other Comprehensive Income (Loss) on Derivatives (Effective Portion)	$ 0	$ (66)	$ 0	$ (179)
Derivatives Designated as Hedging Instruments \| Derivatives in Cash Flow Hedging Relationships \| Interest Rate Products
Derivative [Line Items]
Amount of Loss Recognized in Other Comprehensive Income (Loss) on Derivatives (Effective Portion)	$ 0	$ (66)	$ 0	$ (179)

BORROWINGS - Summary of Borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
Federal funds purchased	$ 30,000	$ 0
Securities sold under repurchase agreements	124,894	157,280
Federal Home Loan Bank advances	832,629	712,852
Subordinated debentures and other borrowings	93,562	158,644
Total Borrowings	$ 1,081,085	$ 1,028,776

- Definition

Amount, after the effects of master netting arrangements, of funds outstanding borrowed in the form of a security repurchase agreement between the entity and another party for the sale and repurchase of identical or substantially the same securities at a date certain for a specified price. Includes liabilities not subject to a master netting arrangement and not elected to be offset.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Stockholders' Equity [Abstract]
Cash dividends on preferred stock (in dollars per share)	$ 46.88	$ 46.88	$ 140.64	$ 140.64
Cash dividends on common stock (in dollars per share)	$ 0.35	$ 0.34	$ 1.04	$ 1.00

INCOME TAX (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
INCOME TAX (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Reconciliation of Federal Statutory to Actual Tax Expense:
Federal statutory income tax at 21%	$ 11,833	$ 13,728	$ 32,572	$ 44,589
Tax-exempt interest income	(4,409)	(4,469)	(13,157)	(13,792)
Non-deductible FDIC premiums	180	126	462	299
Share-based compensation	98	(108)	113	(172)
Tax-exempt earnings and gains on life insurance	(579)	(369)	(1,318)	(1,080)
Tax credits	(305)	(84)	(969)	(249)
State Income Tax	333	254	142	1,474
Other	9	(73)	207	(48)
Actual Tax Expense	$ 7,160	$ 9,005	$ 18,052	$ 31,021
Effective Tax Rate	12.70%	13.80%	11.60%	14.60%

DERIVATIVE FINANCIAL INSTRUMENTS - Effect of Derivative Financial Instruments on Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Derivative [Line Items]
Amount of Gain Reclassed from Accumulated Other Comprehensive Loss into Income (Effective Portion)	$ 0	$ 0	$ 0	$ (15)
Derivatives Designated as Hedging Instruments \| Interest rate contracts \| Interest Expense \| Cash Flow Hedging
Derivative [Line Items]
Amount of Gain Reclassed from Accumulated Other Comprehensive Loss into Income (Effective Portion)	$ 0	$ 0	$ 0	$ (15)

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Composition of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	$ 12,646,808	$ 12,486,027
Commercial and industrial loans
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	4,041,217	3,670,948
Agricultural land, production and other loans to farmers
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	238,743	263,414
Construction
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	814,704	957,545
Commercial real estate, non-owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	2,251,351	2,400,839
Commercial real estate, owner occupied
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	1,152,751	1,162,083
Residential
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	2,366,943	2,288,921
Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	641,188	617,571
Individuals' loans for household and other personal expenditures
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	158,480	168,388
Public finance and other commercial loans
Financing Receivable, Credit Quality Indicator [Line Items]
Loans	$ 981,431	$ 956,318

ACQUISITIONS AND DISPOSITIONS (Details) - Discontinued Operations, Held-for-Sale - Old Second Bancorp, Inc. Branch Sale $ in Millions	Sep. 30, 2024 USD ($)	Aug. 26, 2024 bankBranch
Business Acquisition [Line Items]
Number of branches \| bankBranch		5
Loans	$ 9.2
Deposits and other liabilities held for sale	287.7
Fixed assets	$ 3.4

INCOME TAX (Tables)

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Summary of Reconciliation of Federal Statutory to Actual Tax Expense

The following table summarizes the major components creating differences between income taxes at the federal statutory and the effective tax rate recorded in the consolidated condensed statements of income for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023








Reconciliation of Federal Statutory to Actual Tax Expense:
Federal statutory income tax at 21%	$	11,833		$	13,728		$	32,572		$	44,589
Tax-exempt interest income	(4,409)			(4,469)			(13,157)			(13,792)
Non-deductible FDIC premiums	180			126			462			299
Share-based compensation	98			(108)			113			(172)
Tax-exempt earnings and gains on life insurance	(579)			(369)			(1,318)			(1,080)
Tax credits	(305)			(84)			(969)			(249)

State Income Tax	333			254			142			1,474
Other	9			(73)			207			(48)
Actual Tax Expense	$	7,160		$	9,005		$	18,052		$	31,021

Effective Tax Rate	12.7		%	13.8		%	11.6		%	14.6		%

CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
ASSETS
Cash and due from banks	$ 84,719	$ 112,649
Interest-bearing deposits	359,126	436,080
Investment securities available for sale	1,553,496	1,627,112
Investment securities held to maturity, net of allowance for credit losses of $245 and $245 (fair value of $1,823,006 and $1,870,374)	2,108,649	2,184,252
Loans held for sale	40,652	18,934
Loans	12,646,808	12,486,027
Less: Allowance for credit losses - loans	(187,828)	(204,934)
Net loans	12,458,980	12,281,093
Premises and equipment	129,582	133,896
Federal Home Loan Bank stock	41,716	41,769
Interest receivable	92,055	97,664
Goodwill	712,002	712,002
Other intangibles	21,599	27,099
Cash surrender value of life insurance	304,613	306,301
Other real estate owned	5,247	4,831
Tax asset, deferred and receivable	86,732	99,883
Other assets	348,384	322,322
TOTAL ASSETS	18,347,552	18,405,887
Deposits:
Noninterest-bearing	2,334,197	2,500,062
Interest-bearing	12,030,903	12,321,391
Total Deposits	14,365,100	14,821,453
Borrowings:
Federal funds purchased	30,000	0
Securities sold under repurchase agreements	124,894	157,280
Federal Home Loan Bank advances	832,629	712,852
Subordinated debentures and other borrowings	93,562	158,644
Total Borrowings	1,081,085	1,028,776
Deposits and other liabilities held for sale	288,476	0
Interest payable	18,089	18,912
Other liabilities	292,429	289,033
Total Liabilities	16,045,179	16,158,174
COMMITMENTS AND CONTINGENT LIABILITIES
STOCKHOLDERS' EQUITY
Common stock value	7,265	7,428
Additional paid-in capital	1,192,683	1,236,506
Retained earnings	1,229,125	1,154,624
Accumulated other comprehensive loss	(151,825)	(175,970)
Total Stockholders' Equity	2,302,373	2,247,713
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	18,347,552	18,405,887
Cumulative Preferred Stock
STOCKHOLDERS' EQUITY
Preferred stock value	125	125
Series A Preferred Stock
STOCKHOLDERS' EQUITY
Preferred stock value	$ 25,000	$ 25,000

INVESTMENT SECURITIES - Gross Gains and Losses on Sales and Redemptions of Available for Sale Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Sales and redemptions of investment securities available for sale:
Gross gains	$ 7	$ 0	$ 7	$ 759
Gross losses	(9,121)	(1,650)	(9,172)	(5,372)
Net gains (losses) on sales and redemptions of investment securities available for sale	$ (9,114)	$ (1,650)	$ (9,165)	$ (4,613)

INVESTMENT SECURITIES - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Accrued interest on investment securities	$ 21,700	$ 25,200
Allowance for credit losses	245	245
Carrying value of securities pledged as collateral	3,400,000	1,800,000
Securities sold under repurchase agreements	143,700	181,400
State and municipal
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items]
Allowance for credit losses	$ 245	$ 245

BORROWINGS - Narrative (Details)			9 Months Ended		12 Months Ended
BORROWINGS - Narrative (Details)	Dec. 18, 2024	Nov. 01, 2013 USD ($) investor	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Jun. 30, 2024 USD ($)	Mar. 31, 2024 USD ($)	Dec. 18, 2019 USD ($)
Debt Instrument [Line Items]
Total available remaining borrowing capacity from FHLB			$ 762,600,000
Federal Home Loan Bank advances			$ 832,629,000		$ 712,852,000
Debt face amount		$ 70,000,000
Private debt issuance, number of institutional investors \| investor		4
5.00% Senior Notes Due 2028
Debt Instrument [Line Items]
Redemption price (percent)		100.00%
Senior Notes
Debt Instrument [Line Items]
Fixed interest rate term		10 years
U.S. Bank, N.A \| Line of Credit
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			2.25%
Outstanding balance on the line of credit			$ 0
Line of credit facility, maximum borrowing capacity			$ 75,000,000
Line of credit facility, commitment fee percentage			0.40%
Putable Advances
Debt Instrument [Line Items]
Federal Home Loan Bank advances			$ 305,000,000
Minimum
Debt Instrument [Line Items]
Interest rate, minimum (as a percent)			0.35%
Maximum
Debt Instrument [Line Items]
Interest rate, minimum (as a percent)			4.94%
Securities Sold Under Repurchase Agreements
Debt Instrument [Line Items]
Maximum amount of outstanding agreements			$ 194,200,000	$ 241,900,000
Total of average agreements			138,100,000	$ 181,200,000
Debt outstanding			124,894,000
Subordinated Debentures and Term Loans
Debt Instrument [Line Items]
Debt outstanding			93,562,000		158,600,000
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%
Issued notice							$ 40,000,000
Subordinated Debenture \| 6.75% Subordinated Notes Due 2028 \| Notice of intent to redeem
Debt Instrument [Line Items]
Issued notice						$ 25,000,000
Subordinated Debenture \| Level One Subordinated Notes
Debt Instrument [Line Items]
Debt face amount								$ 30,000,000
Interest rate on notes (as a percent)								4.75%
Subordinated Debenture \| Level One Subordinated Notes \| Forecast
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	3.11%
Subordinated Debenture \| First Merchant Capital Trust II
Debt Instrument [Line Items]
Debt face amount			$ 41,700,000		$ 41,700,000
Basis spread on variable rate (as a percent)			0.26161%
Interest rate during the period			6.77%		7.21%
Subordinated Debenture \| Ameriana Capital Trust I
Debt Instrument [Line Items]
Debt face amount			$ 10,300,000		$ 10,300,000
Basis spread on variable rate (as a percent)			0.26161%
Interest rate during the period			6.71%		7.15%
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%
Secured Debt
Debt Instrument [Line Items]
Debt outstanding			$ 7,200,000		$ 7,300,000
Interest rate on notes (as a percent)			3.41%		3.41%
Secured Debt \| Level One
Debt Instrument [Line Items]
Debt outstanding			$ 1,200,000		$ 1,200,000
Interest rate on notes (as a percent)			1.00%		1.00%

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Risk Grading of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	$ 2,236,647	$ 2,870,871
Current fiscal year, charge-offs	1,308	14,338
Fiscal year before current fiscal year	1,944,861	2,546,512
Fiscal year before current fiscal year, charge-offs	38,737	4,012
Two years before current fiscal year	2,049,586	2,063,941
Two years before current fiscal year, charge-offs	1,330	1,350
Three years before current fiscal year	1,676,529	1,410,944
Three years before current fiscal year, charge-offs	8,872	5,894
Four years before current fiscal year	1,206,739	529,690
Four years before current fiscal year, charge-offs	572	338
Prior	1,206,911	892,018
Prior, charge-offs	838	2,107
Revolving loans amortized cost basis	2,316,471	2,164,828
Revolving loans amortized cost basis, charge-offs	0	0
Revolving loans converted to term	9,064	7,223
Revolving loans converted to term, charge-offs	0	0
Total	12,646,808	12,486,027
Total, charge-offs	51,657	28,039
Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	1,153,289	1,223,491
Current fiscal year, charge-offs	1,178	13,973
Fiscal year before current fiscal year	668,386	498,757
Fiscal year before current fiscal year, charge-offs	37,655	2,711
Two years before current fiscal year	292,762	272,427
Two years before current fiscal year, charge-offs	242	576
Three years before current fiscal year	190,009	93,854
Three years before current fiscal year, charge-offs	8,577	5,665
Four years before current fiscal year	67,109	52,403
Four years before current fiscal year, charge-offs	498	78
Prior	55,389	46,773
Prior, charge-offs	236	261
Revolving loans amortized cost basis	1,613,582	1,483,039
Revolving loans amortized cost basis, charge-offs	0	0
Revolving loans converted to term	691	204
Revolving loans converted to term, charge-offs	0	0
Total	4,041,217	3,670,948
Total, charge-offs	48,386	23,264
Commercial and industrial loans \| Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	1,110,731	1,175,967
Fiscal year before current fiscal year	625,113	474,601
Two years before current fiscal year	259,418	253,148
Three years before current fiscal year	180,272	86,226
Four years before current fiscal year	62,723	47,910
Prior	53,350	45,020
Revolving loans amortized cost basis	1,495,641	1,393,756
Revolving loans converted to term	136	60
Total	3,787,384	3,476,688
Commercial and industrial loans \| Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	14,480	34,356
Fiscal year before current fiscal year	9,872	3,911
Two years before current fiscal year	8,979	1,546
Three years before current fiscal year	2,730	5,149
Four years before current fiscal year	2,731	2,986
Prior	369	241
Revolving loans amortized cost basis	45,459	45,994
Revolving loans converted to term	0	0
Total	84,620	94,183
Commercial and industrial loans \| Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	28,078	12,311
Fiscal year before current fiscal year	32,296	20,245
Two years before current fiscal year	24,365	17,733
Three years before current fiscal year	7,007	2,479
Four years before current fiscal year	1,655	1,507
Prior	1,670	1,512
Revolving loans amortized cost basis	72,482	40,449
Revolving loans converted to term	555	144
Total	168,108	96,380
Commercial and industrial loans \| Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	857
Fiscal year before current fiscal year	1,105	0
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	0	0
Revolving loans amortized cost basis	0	2,840
Revolving loans converted to term	0	0
Total	1,105	3,697
Agricultural land, production and other loans to farmers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	24,308	35,691
Current fiscal year, charge-offs		0
Fiscal year before current fiscal year	24,089	38,561
Fiscal year before current fiscal year, charge-offs		0
Two years before current fiscal year	35,090	31,511
Two years before current fiscal year, charge-offs		0
Three years before current fiscal year	28,568	31,502
Three years before current fiscal year, charge-offs		0
Four years before current fiscal year	28,766	12,995
Four years before current fiscal year, charge-offs		0
Prior	32,975	25,620
Prior, charge-offs		0
Revolving loans amortized cost basis	64,947	87,534
Revolving loans amortized cost basis, charge-offs		0
Revolving loans converted to term	0	0
Revolving loans converted to term, charge-offs		0
Total	238,743	263,414
Total, charge-offs		0
Agricultural land, production and other loans to farmers \| Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	23,646	35,633
Fiscal year before current fiscal year	24,039	38,145
Two years before current fiscal year	33,909	31,511
Three years before current fiscal year	27,872	31,048
Four years before current fiscal year	28,250	12,995
Prior	32,445	25,462
Revolving loans amortized cost basis	63,526	87,534
Revolving loans converted to term	0	0
Total	233,687	262,328
Agricultural land, production and other loans to farmers \| Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	171	0
Fiscal year before current fiscal year	0	266
Two years before current fiscal year	245	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	444	122
Revolving loans amortized cost basis	548	0
Revolving loans converted to term	0	0
Total	1,408	388
Agricultural land, production and other loans to farmers \| Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	491	58
Fiscal year before current fiscal year	50	150
Two years before current fiscal year	936	0
Three years before current fiscal year	696	454
Four years before current fiscal year	516	0
Prior	86	36
Revolving loans amortized cost basis	873	0
Revolving loans converted to term	0	0
Total	3,648	698
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	244,050	430,923
Current fiscal year, charge-offs		0
Fiscal year before current fiscal year	254,267	271,917
Fiscal year before current fiscal year, charge-offs		0
Two years before current fiscal year	201,097	203,672
Two years before current fiscal year, charge-offs		0
Three years before current fiscal year	87,087	29,218
Three years before current fiscal year, charge-offs		0
Four years before current fiscal year	6,518	7,723
Four years before current fiscal year, charge-offs		0
Prior	8,857	2,357
Prior, charge-offs		0
Revolving loans amortized cost basis	12,828	11,735
Revolving loans amortized cost basis, charge-offs		0
Revolving loans converted to term	0	0
Revolving loans converted to term, charge-offs		0
Total	814,704	957,545
Total, charge-offs		0
Construction \| Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	186,900	403,578
Fiscal year before current fiscal year	227,462	267,587
Two years before current fiscal year	174,201	198,350
Three years before current fiscal year	73,746	8,372
Four years before current fiscal year	6,518	7,723
Prior	8,851	2,357
Revolving loans amortized cost basis	12,828	11,735
Revolving loans converted to term	0	0
Total	690,506	899,702
Construction \| Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	35,150	25,894
Fiscal year before current fiscal year	26,805	0
Two years before current fiscal year	18,197	0
Three years before current fiscal year	13,341	20,846
Four years before current fiscal year	0	0
Prior	6	0
Revolving loans amortized cost basis	0	0
Revolving loans converted to term	0	0
Total	93,499	46,740
Construction \| Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	22,000	1,451
Fiscal year before current fiscal year	0	4,330
Two years before current fiscal year	8,699	5,322
Three years before current fiscal year	0	0
Four years before current fiscal year	0	0
Prior	0	0
Revolving loans amortized cost basis	0	0
Revolving loans converted to term	0	0
Total	30,699	11,103
Commercial real estate, non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	403,251	470,118
Current fiscal year, charge-offs	0	0
Fiscal year before current fiscal year	305,444	535,962
Fiscal year before current fiscal year, charge-offs	339	66
Two years before current fiscal year	374,640	542,551
Two years before current fiscal year, charge-offs	3	0
Three years before current fiscal year	443,864	443,320
Three years before current fiscal year, charge-offs	0	0
Four years before current fiscal year	372,634	160,799
Four years before current fiscal year, charge-offs	0	0
Prior	329,837	231,061
Prior, charge-offs	0	0
Revolving loans amortized cost basis	21,681	17,028
Revolving loans amortized cost basis, charge-offs	0	0
Revolving loans converted to term	0	0
Revolving loans converted to term, charge-offs	0	0
Total	2,251,351	2,400,839
Total, charge-offs	342	66
Commercial real estate, non-owner occupied \| Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	278,958	373,378
Fiscal year before current fiscal year	280,167	504,280
Two years before current fiscal year	346,311	535,327
Three years before current fiscal year	413,970	418,553
Four years before current fiscal year	351,260	141,320
Prior	299,771	200,821
Revolving loans amortized cost basis	21,681	16,744
Revolving loans converted to term	0	0
Total	1,992,118	2,190,423
Commercial real estate, non-owner occupied \| Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	81,543	76,382
Fiscal year before current fiscal year	19,499	21,145
Two years before current fiscal year	19,347	7,005
Three years before current fiscal year	23,624	4,531
Four years before current fiscal year	1,768	19,479
Prior	28,452	27,941
Revolving loans amortized cost basis	0	37
Revolving loans converted to term	0	0
Total	174,233	156,520
Commercial real estate, non-owner occupied \| Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	31,922	20,358
Fiscal year before current fiscal year	5,778	10,537
Two years before current fiscal year	8,982	219
Three years before current fiscal year	6,270	20,236
Four years before current fiscal year	19,606	0
Prior	1,614	2,299
Revolving loans amortized cost basis	0	247
Revolving loans converted to term	0	0
Total	74,172	53,896
Commercial real estate, non-owner occupied \| Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	10,828
Fiscal year before current fiscal year	0
Two years before current fiscal year	0
Three years before current fiscal year	0
Four years before current fiscal year	0
Prior	0
Revolving loans amortized cost basis	0
Revolving loans converted to term	0
Total	10,828
Commercial real estate, owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	127,141	201,554
Current fiscal year, charge-offs	0	48
Fiscal year before current fiscal year	182,523	208,567
Fiscal year before current fiscal year, charge-offs	0	0
Two years before current fiscal year	187,332	269,848
Two years before current fiscal year, charge-offs	0	0
Three years before current fiscal year	246,262	270,527
Three years before current fiscal year, charge-offs	0	0
Four years before current fiscal year	222,657	100,388
Four years before current fiscal year, charge-offs	9	2
Prior	152,608	83,316
Prior, charge-offs	0	0
Revolving loans amortized cost basis	34,228	27,883
Revolving loans amortized cost basis, charge-offs	0	0
Revolving loans converted to term	0	0
Revolving loans converted to term, charge-offs	0	0
Total	1,152,751	1,162,083
Total, charge-offs	9	50
Commercial real estate, owner occupied \| Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	118,117	176,750
Fiscal year before current fiscal year	167,922	199,821
Two years before current fiscal year	173,512	256,346
Three years before current fiscal year	230,821	263,522
Four years before current fiscal year	214,975	99,180
Prior	144,123	77,485
Revolving loans amortized cost basis	33,613	27,369
Revolving loans converted to term	0	0
Total	1,083,083	1,100,473
Commercial real estate, owner occupied \| Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	2,220	6,712
Fiscal year before current fiscal year	2,385	5,034
Two years before current fiscal year	8,616	9,319
Three years before current fiscal year	6,545	2,460
Four years before current fiscal year	4,935	919
Prior	1,402	2,902
Revolving loans amortized cost basis	460	514
Revolving loans converted to term	0	0
Total	26,563	27,860
Commercial real estate, owner occupied \| Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	6,804	18,092
Fiscal year before current fiscal year	12,216	3,712
Two years before current fiscal year	5,204	4,183
Three years before current fiscal year	8,896	4,545
Four years before current fiscal year	2,747	289
Prior	7,083	2,929
Revolving loans amortized cost basis	155	0
Revolving loans converted to term	0	0
Total	43,105	33,750
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	168,430	398,334
Current fiscal year, charge-offs	0	101
Fiscal year before current fiscal year	424,733	704,355
Fiscal year before current fiscal year, charge-offs	124	252
Two years before current fiscal year	692,860	448,226
Two years before current fiscal year, charge-offs	653	208
Three years before current fiscal year	415,668	368,420
Three years before current fiscal year, charge-offs	123	3
Four years before current fiscal year	342,646	100,585
Four years before current fiscal year, charge-offs	21	3
Prior	316,151	263,618
Prior, charge-offs	288	94
Revolving loans amortized cost basis	6,442	5,219
Revolving loans amortized cost basis, charge-offs	0	0
Revolving loans converted to term	13	164
Revolving loans converted to term, charge-offs	0	0
Total	2,366,943	2,288,921
Total, charge-offs	1,209	661
Residential \| Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	166,807	395,363
Fiscal year before current fiscal year	421,280	695,056
Two years before current fiscal year	680,588	442,495
Three years before current fiscal year	408,017	365,297
Four years before current fiscal year	339,835	98,654
Prior	308,575	254,718
Revolving loans amortized cost basis	6,117	4,988
Revolving loans converted to term	13	83
Total	2,331,232	2,256,654
Residential \| Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	1,095	2,167
Fiscal year before current fiscal year	1,975	5,591
Two years before current fiscal year	5,436	3,202
Three years before current fiscal year	3,425	1,924
Four years before current fiscal year	1,745	1,065
Prior	3,585	4,837
Revolving loans amortized cost basis	0	200
Revolving loans converted to term	0	81
Total	17,261	19,067
Residential \| Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	528	804
Fiscal year before current fiscal year	1,478	3,708
Two years before current fiscal year	6,836	2,529
Three years before current fiscal year	4,226	1,199
Four years before current fiscal year	1,066	866
Prior	3,991	4,063
Revolving loans amortized cost basis	325	31
Revolving loans converted to term	0	0
Total	18,450	13,200
Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	6,301	9,438
Current fiscal year, charge-offs	0	69
Fiscal year before current fiscal year	6,674	30,499
Fiscal year before current fiscal year, charge-offs	10	213
Two years before current fiscal year	26,315	62,318
Two years before current fiscal year, charge-offs	35	224
Three years before current fiscal year	55,167	12,176
Three years before current fiscal year, charge-offs	23	149
Four years before current fiscal year	11,864	1,107
Four years before current fiscal year, charge-offs	0	193
Prior	4,585	4,000
Prior, charge-offs	264	1,596
Revolving loans amortized cost basis	522,291	491,950
Revolving loans amortized cost basis, charge-offs	0	0
Revolving loans converted to term	7,991	6,083
Revolving loans converted to term, charge-offs	0	0
Total	641,188	617,571
Total, charge-offs	332	2,444
Home equity \| Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	6,239	9,375
Fiscal year before current fiscal year	6,674	29,784
Two years before current fiscal year	25,743	61,591
Three years before current fiscal year	54,185	11,084
Four years before current fiscal year	11,864	1,092
Prior	4,346	3,875
Revolving loans amortized cost basis	516,564	484,330
Revolving loans converted to term	6,766	5,837
Total	632,381	606,968
Home equity \| Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	715
Two years before current fiscal year	0	0
Three years before current fiscal year	421	1,092
Four years before current fiscal year	0	15
Prior	33	2
Revolving loans amortized cost basis	3,772	5,031
Revolving loans converted to term	593	149
Total	4,819	7,004
Home equity \| Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	62	63
Fiscal year before current fiscal year	0	0
Two years before current fiscal year	572	727
Three years before current fiscal year	561	0
Four years before current fiscal year	0	0
Prior	206	123
Revolving loans amortized cost basis	1,955	2,589
Revolving loans converted to term	632	97
Total	3,988	3,599
Individuals' loans for household and other personal expenditures
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	37,648	35,965
Current fiscal year, charge-offs	130	147
Fiscal year before current fiscal year	24,957	49,547
Fiscal year before current fiscal year, charge-offs	609	770
Two years before current fiscal year	34,620	28,525
Two years before current fiscal year, charge-offs	397	342
Three years before current fiscal year	12,585	6,795
Three years before current fiscal year, charge-offs	149	77
Four years before current fiscal year	3,177	2,071
Four years before current fiscal year, charge-offs	44	62
Prior	5,225	5,918
Prior, charge-offs	50	156
Revolving loans amortized cost basis	39,899	38,795
Revolving loans amortized cost basis, charge-offs	0	0
Revolving loans converted to term	369	772
Revolving loans converted to term, charge-offs	0	0
Total	158,480	168,388
Total, charge-offs	1,379	1,554
Individuals' loans for household and other personal expenditures \| Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	37,606	35,781
Fiscal year before current fiscal year	24,496	49,295
Two years before current fiscal year	34,052	28,387
Three years before current fiscal year	11,078	6,726
Four years before current fiscal year	3,097	2,070
Prior	5,215	5,904
Revolving loans amortized cost basis	39,613	38,619
Revolving loans converted to term	369	772
Total	155,526	167,554
Individuals' loans for household and other personal expenditures \| Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	42	184
Fiscal year before current fiscal year	461	246
Two years before current fiscal year	568	138
Three years before current fiscal year	1,507	69
Four years before current fiscal year	80	0
Prior	8	14
Revolving loans amortized cost basis	286	176
Revolving loans converted to term	0	0
Total	2,952	827
Individuals' loans for household and other personal expenditures \| Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	0	0
Fiscal year before current fiscal year	0	6
Two years before current fiscal year	0	0
Three years before current fiscal year	0	0
Four years before current fiscal year	0	1
Prior	2	0
Revolving loans amortized cost basis	0	0
Revolving loans converted to term	0	0
Total	2	7
Public finance and other commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	72,229	65,357
Fiscal year before current fiscal year	53,788	208,347
Two years before current fiscal year	204,870	204,863
Three years before current fiscal year	197,319	155,132
Four years before current fiscal year	151,368	91,619
Prior	301,284	229,355
Revolving loans amortized cost basis	573	1,645
Revolving loans converted to term	0	0
Total	981,431	956,318
Public finance and other commercial loans \| Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current fiscal year	72,229	65,357
Fiscal year before current fiscal year	53,788	208,347
Two years before current fiscal year	204,870	204,863
Three years before current fiscal year	197,319	155,132
Four years before current fiscal year	151,368	91,619
Prior	301,284	229,355
Revolving loans amortized cost basis	573	1,645
Revolving loans converted to term	0	0
Total	$ 981,431	$ 956,318

DERIVATIVE FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

Risk Management Objective of Using Derivatives

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

Derivatives Designated as Hedges

The Corporation’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Corporation primarily uses interest rate swaps and interest rate caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the payment of fixed amounts to a counterparty in exchange for the Corporation receiving variable payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. As of September 30, 2024 and December 31, 2023 the Corporation had no interest rate swaps or caps designated as 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 loss. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three and nine months ended September 30, 2024 and 2023, the Corporation did not recognize any ineffectiveness.

Amounts reported in accumulated other comprehensive loss 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 doesn't expect to reclassify income (loss) associated with derivatives from accumulated other comprehensive loss to interest expense.

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


Derivatives in Cash Flow Hedging Relationships	Amount of Loss Recognized in Other Comprehensive Income (Loss) on Derivatives (Effective Portion)
	Three Months Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Interest Rate Products	$	—	$	(66)	$	—	$	(179)

The amount of gain (loss) reclassified from accumulated other comprehensive loss into income related to cash flow hedging relationships is included in the tables below for the periods indicated.

Derivatives Designated as
Hedging Instruments

Location of Gain (Loss)
Recognized Income on
Derivative

Amount of Gain Reclassed from Accumulated Other Comprehensive Loss into Income (Effective Portion)

Three Months Ended September 30, 2024

Three Months Ended September 30, 2023

Interest rate contracts

Interest Expense

—

Derivatives Designated as
Hedging Instruments

Location of Gain (Loss)
Recognized Income on
Derivative

Amount of Gain Reclassed from Accumulated Other Comprehensive Loss into Income (Effective Portion)

Nine Months Ended September 30, 2024

Nine Months Ended September 30, 2023

Interest rate contracts

Interest Expense

—

(15)

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.

Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. It is the Corporation's practice to enter into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are not designated in hedge relationships. Fair values were estimated based on changes in mortgage interest rates from the date of the commitments. Changes in the fair value of these mortgage banking derivatives are included in net gains and fees on sales of loans.


	September 30, 2024				December 31, 2023
	Notional Amount		Fair Value		Notional Amount		Fair Value
Included in other assets:
Interest rate swaps	$	1,333,382	$	61,207	$	1,355,947	$	78,743
Forward contracts related to mortgage loans to be delivered for sale	80,528		840		15,160		469
Interest rate lock commitments	38,639		223		22,706		167
Included in other assets	$	1,452,549	$	62,270	$	1,393,813	$	79,379
Included in other liabilities:
Interest rate swaps	$	1,332,410	$	61,248	$	1,355,947	$	78,811
Forward contracts related to mortgage loans to be delivered for sale	16,500		61		25,290		191
Interest rate lock commitments	28,135		77		1,025		6
Included in other liabilities	$	1,377,045	$	61,386	$	1,382,262	$	79,008

In the normal course of business, the Corporation may decide to settle a forward contract rather than fulfill the contract. Cash received or paid in this settlement manner is included in "Net gains and fees on sales of loans" in the Consolidated Condensed Statements of Income and is considered a cost of executing a forward contract. The amount of gain (loss) recognized into income related to non-designated hedging instruments is included in the tables below for the periods indicated.


Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized Income on Derivative	Amount of Gain (Loss) Recognized into Income on Derivatives
		Three Months Ended September 30, 2024		Three Months Ended September 30, 2023
Forward contracts related to mortgage loans to be delivered for sale	Net gains and fees on sales of loans	$	(966)	$	982
Interest rate lock commitments	Net gains and fees on sales of loans	30		(100)
Total net gain (loss) recognized in income		$	(936)	$	882



Derivatives Not Designated as Hedging Instruments	Location of Gain (Loss) Recognized Income on Derivative	Amount of Gain (Loss) Recognized into Income on Derivatives
		Nine Months Ended September 30, 2024		Nine Months Ended September 30, 2023
Forward contracts related to mortgage loans to be delivered for sale	Net gains and fees on sales of loans	$	(573)	$	1,691
Interest rate lock commitments	Net gains and fees on sales of loans	(15)		(133)
Total net gain/(loss) recognized in income		$	(588)	$	1,558

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 mitigation of such risk is through quarterly financial reviews, comparing mark-to-market values with policy limitations, credit ratings and collateral pledging.

Credit-risk-related Contingent Features

The Corporation has agreements with certain of its derivative counterparties that contain a provision where if the Corporation fails to maintain its status as a well or adequately capitalized institution, then the Corporation could be required to terminate or fully collateralize all outstanding derivative contracts. Additionally, the Corporation has agreements with certain of its derivative counterparties that contain a provision where if the Corporation defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Corporation could also be declared in default on its derivative obligations. As of September 30, 2024, the termination value of derivatives in a net liability position related to these agreements was $12.6 million, which resulted in $1.3 million of collateral pledged to counterparties as of September 30, 2024. While the Corporation did not breach any of these provisions as of September 30, 2024, if it had, the Corporation could have been required to settle its obligations under the agreements at their termination value.

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Changes in Allowance for Loan Losses by Loan Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 189,537	$ 221,147	$ 204,934	$ 223,277
Provision for credit losses - loans	5,000	5,000	31,500	5,000
Recoveries on loans	894	546	3,051	1,835
Loans charged off	(7,603)	(20,911)	(51,657)	(24,330)
Ending balance	187,828	205,782	187,828	205,782
Commercial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	91,217	108,373	97,348	102,216
Provision for credit losses - loans	8,456	3,020	43,249	9,460
Recoveries on loans	505	179	1,592	775
Loans charged off	(6,375)	(19,833)	(48,386)	(20,712)
Ending balance	93,803	91,739	93,803	91,739
Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	45,514	39,157	44,048	46,839
Provision for credit losses - loans	1,873	4,901	3,476	(2,833)
Recoveries on loans	18	0	232	56
Loans charged off	0	0	(351)	(4)
Ending balance	47,405	44,058	47,405	44,058
Construction
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	14,360	30,073	24,823	28,955
Provision for credit losses - loans	(2,609)	140	(13,072)	1,258
Recoveries on loans	0	0	0	0
Loans charged off	0	0	0	0
Ending balance	11,751	30,213	11,751	30,213
Consumer & Residential
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	38,446	43,544	38,715	45,267
Provision for credit losses - loans	(2,720)	(3,061)	(2,153)	(2,885)
Recoveries on loans	371	367	1,227	1,004
Loans charged off	(1,228)	(1,078)	(2,920)	(3,614)
Ending balance	$ 34,869	$ 39,772	$ 34,869	$ 39,772

DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value of Derivative Financial Instruments and Their Classification on Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value
Assets Derivatives	$ 62,270	$ 79,379
Liabilities Derivatives	61,386	79,008
Derivatives Not Designated as Hedging Instruments \| Other Assets
Notional Amount
Included in other assets	1,452,549	1,393,813
Fair Value
Assets Derivatives	62,270	79,379
Derivatives Not Designated as Hedging Instruments \| Other Liabilities
Notional Amount
Included in other liabilities	1,377,045	1,382,262
Fair Value
Liabilities Derivatives	61,386	79,008
Derivatives Not Designated as Hedging Instruments \| Interest rate swaps \| Other Assets
Notional Amount
Included in other assets	1,333,382	1,355,947
Fair Value
Assets Derivatives	61,207	78,743
Derivatives Not Designated as Hedging Instruments \| Interest rate swaps \| Other Liabilities
Notional Amount
Included in other liabilities	1,332,410	1,355,947
Fair Value
Liabilities Derivatives	61,248	78,811
Derivatives Not Designated as Hedging Instruments \| Forward contracts related to mortgage loans to be delivered for sale \| Other Assets
Notional Amount
Included in other assets	80,528	15,160
Fair Value
Assets Derivatives	840	469
Derivatives Not Designated as Hedging Instruments \| Forward contracts related to mortgage loans to be delivered for sale \| Other Liabilities
Notional Amount
Included in other liabilities	16,500	25,290
Fair Value
Liabilities Derivatives	61	191
Derivatives Not Designated as Hedging Instruments \| Interest rate lock commitments \| Other Assets
Notional Amount
Included in other assets	38,639	22,706
Fair Value
Assets Derivatives	223	167
Derivatives Not Designated as Hedging Instruments \| Interest rate lock commitments \| Other Liabilities
Notional Amount
Included in other liabilities	28,135	1,025
Fair Value
Liabilities Derivatives	$ 77	$ 6

LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Summary of Composition of Loan Portfolio by Loan Class

The following table illustrates the composition of the Corporation’s loan portfolio by loan class as of the dates indicated.


	September 30, 2024		December 31, 2023

Commercial and industrial loans	$	4,041,217	$	3,670,948
Agricultural land, production and other loans to farmers	238,743		263,414
Real estate loans:
Construction	814,704		957,545
Commercial real estate, non-owner occupied	2,251,351		2,400,839
Commercial real estate, owner occupied	1,152,751		1,162,083
Residential	2,366,943		2,288,921
Home equity	641,188		617,571
Individuals' loans for household and other personal expenditures	158,480		168,388
Public finance and other commercial loans	981,431		956,318
Loans	$	12,646,808	$	12,486,027

Summary of Credit Quality of Loan Portfolio by Loan Class


	September 30, 2024
	Term Loans (amortized cost basis by origination year)												Revolving loans amortized cost basis		Revolving loans converted to term
	2024		2023		2022		2021		2020		Prior						Total
Commercial and industrial loans
Pass	$	1,110,731	$	625,113	$	259,418	$	180,272	$	62,723	$	53,350	$	1,495,641	$	136	$	3,787,384
Special Mention	14,480		9,872		8,979		2,730		2,731		369		45,459		—		84,620
Substandard	28,078		32,296		24,365		7,007		1,655		1,670		72,482		555		168,108
Doubtful	—		1,105		—		—		—		—		—		—		1,105

Total Commercial and industrial loans	1,153,289		668,386		292,762		190,009		67,109		55,389		1,613,582		691		4,041,217
Current period gross charge-offs	1,178		37,655		242		8,577		498		236		—		—		48,386
Agricultural land, production and other loans to farmers
Pass	23,646		24,039		33,909		27,872		28,250		32,445		63,526		—		233,687
Special Mention	171		—		245		—		—		444		548		—		1,408
Substandard	491		50		936		696		516		86		873		—		3,648


Total Agricultural land, production and other loans to farmers	24,308		24,089		35,090		28,568		28,766		32,975		64,947		—		238,743

Real estate loans:
Construction
Pass	186,900		227,462		174,201		73,746		6,518		8,851		12,828		—		690,506
Special Mention	35,150		26,805		18,197		13,341		—		6		—		—		93,499
Substandard	22,000		—		8,699		—		—		—		—		—		30,699


Total Construction	244,050		254,267		201,097		87,087		6,518		8,857		12,828		—		814,704

Commercial real estate, non-owner occupied
Pass	278,958		280,167		346,311		413,970		351,260		299,771		21,681		—		1,992,118
Special Mention	81,543		19,499		19,347		23,624		1,768		28,452		—		—		174,233
Substandard	31,922		5,778		8,982		6,270		19,606		1,614		—		—		74,172
Doubtful	10,828		—		—		—		—		—		—		—		10,828

Total Commercial real estate, non-owner occupied	403,251		305,444		374,640		443,864		372,634		329,837		21,681		—		2,251,351
Current period gross charge-offs	—		339		3		—		—		—		—		—		342
Commercial real estate, owner occupied
Pass	118,117		167,922		173,512		230,821		214,975		144,123		33,613		—		1,083,083
Special Mention	2,220		2,385		8,616		6,545		4,935		1,402		460		—		26,563
Substandard	6,804		12,216		5,204		8,896		2,747		7,083		155		—		43,105


Total Commercial real estate, owner occupied	127,141		182,523		187,332		246,262		222,657		152,608		34,228		—		1,152,751
Current period gross charge-offs	—		—		—		—		9		—		—		—		9
Residential
Pass	166,807		421,280		680,588		408,017		339,835		308,575		6,117		13		2,331,232
Special Mention	1,095		1,975		5,436		3,425		1,745		3,585		—		—		17,261
Substandard	528		1,478		6,836		4,226		1,066		3,991		325		—		18,450


Total Residential	168,430		424,733		692,860		415,668		342,646		316,151		6,442		13		2,366,943
Current period gross charge-offs	—		124		653		123		21		288		—		—		1,209
Home equity
Pass	6,239		6,674		25,743		54,185		11,864		4,346		516,564		6,766		632,381
Special Mention	—		—		—		421		—		33		3,772		593		4,819
Substandard	62		—		572		561		—		206		1,955		632		3,988


Total Home Equity	6,301		6,674		26,315		55,167		11,864		4,585		522,291		7,991		641,188
Current period gross charge-offs	—		10		35		23		—		264		—		—		332
Individuals' loans for household and other personal expenditures
Pass	37,606		24,496		34,052		11,078		3,097		5,215		39,613		369		155,526
Special Mention	42		461		568		1,507		80		8		286		—		2,952
Substandard	—		—		—		—		—		2		—		—		2


Total Individuals' loans for household and other personal expenditures	37,648		24,957		34,620		12,585		3,177		5,225		39,899		369		158,480
Current period gross charge-offs	130		609		397		149		44		50		—		—		1,379
Public finance and other commercial loans
Pass	72,229		53,788		204,870		197,319		151,368		301,284		573		—		981,431




Total Public finance and other commercial loans	72,229		53,788		204,870		197,319		151,368		301,284		573		—		981,431

Loans	$	2,236,647	$	1,944,861	$	2,049,586	$	1,676,529	$	1,206,739	$	1,206,911	$	2,316,471	$	9,064	$	12,646,808
Total current period gross charge-offs	$	1,308	$	38,737	$	1,330	$	8,872	$	572	$	838	$	—	$	—	$	51,657


	December 31, 2023
	Term Loans (amortized cost basis by origination year)												Revolving loans amortized		Revolving loans converted
	2023		2022		2021		2020		2019		Prior		cost basis		to term		Total
Commercial and industrial loans
Pass	$	1,175,967	$	474,601	$	253,148	$	86,226	$	47,910	$	45,020	$	1,393,756	$	60	$	3,476,688
Special Mention	34,356		3,911		1,546		5,149		2,986		241		45,994		—		94,183
Substandard	12,311		20,245		17,733		2,479		1,507		1,512		40,449		144		96,380
Doubtful	857		—		—		—		—		—		2,840		—		3,697

Total Commercial and industrial loans	1,223,491		498,757		272,427		93,854		52,403		46,773		1,483,039		204		3,670,948
Current period gross charge-offs	13,973		2,711		576		5,665		78		261		—		—		23,264
Agricultural land, production and other loans to farmers
Pass	35,633		38,145		31,511		31,048		12,995		25,462		87,534		—		262,328
Special Mention	—		266		—		—		—		122		—		—		388
Substandard	58		150		—		454		—		36		—		—		698


Total Agricultural land, production and other loans to farmers	35,691		38,561		31,511		31,502		12,995		25,620		87,534		—		263,414
Current period gross charge-offs	—		—		—		—		—		—		—		—		—
Real estate loans:
Construction
Pass	403,578		267,587		198,350		8,372		7,723		2,357		11,735		—		899,702
Special Mention	25,894		—		—		20,846		—		—		—		—		46,740
Substandard	1,451		4,330		5,322		—		—		—		—		—		11,103


Total Construction	430,923		271,917		203,672		29,218		7,723		2,357		11,735		—		957,545
Current period gross charge-offs	—		—		—		—		—		—		—		—		—
Commercial real estate, non-owner occupied
Pass	373,378		504,280		535,327		418,553		141,320		200,821		16,744		—		2,190,423
Special Mention	76,382		21,145		7,005		4,531		19,479		27,941		37		—		156,520
Substandard	20,358		10,537		219		20,236		—		2,299		247		—		53,896


Total Commercial real estate, non-owner occupied	470,118		535,962		542,551		443,320		160,799		231,061		17,028		—		2,400,839
Current period gross charge-offs	—		66		—		—		—		—		—		—		66
Commercial real estate, owner occupied
Pass	176,750		199,821		256,346		263,522		99,180		77,485		27,369		—		1,100,473
Special Mention	6,712		5,034		9,319		2,460		919		2,902		514		—		27,860
Substandard	18,092		3,712		4,183		4,545		289		2,929		—		—		33,750


Total Commercial real estate, owner occupied	201,554		208,567		269,848		270,527		100,388		83,316		27,883		—		1,162,083
Current period gross charge-offs	48		—		—		—		2		—		—		—		50
Residential
Pass	395,363		695,056		442,495		365,297		98,654		254,718		4,988		83		2,256,654
Special Mention	2,167		5,591		3,202		1,924		1,065		4,837		200		81		19,067
Substandard	804		3,708		2,529		1,199		866		4,063		31		—		13,200


Total Residential	398,334		704,355		448,226		368,420		100,585		263,618		5,219		164		2,288,921
Current period gross charge-offs	101		252		208		3		3		94		—		—		661
Home equity
Pass	9,375		29,784		61,591		11,084		1,092		3,875		484,330		5,837		606,968
Special Mention	—		715		—		1,092		15		2		5,031		149		7,004
Substandard	63		—		727		—		—		123		2,589		97		3,599


Total Home Equity	9,438		30,499		62,318		12,176		1,107		4,000		491,950		6,083		617,571
Current period gross charge-offs	69		213		224		149		193		1,596		—		—		2,444
Individuals' loans for household and other personal expenditures
Pass	35,781		49,295		28,387		6,726		2,070		5,904		38,619		772		167,554
Special Mention	184		246		138		69		—		14		176		—		827
Substandard	—		6		—		—		1		—		—		—		7


Total Individuals' loans for household and other personal expenditures	35,965		49,547		28,525		6,795		2,071		5,918		38,795		772		168,388
Current period gross charge-offs	147		770		342		77		62		156		—		—		1,554
Public finance and other commercial loans
Pass	65,357		208,347		204,863		155,132		91,619		229,355		1,645		—		956,318




Total Public finance and other commercial loans	65,357		208,347		204,863		155,132		91,619		229,355		1,645		—		956,318

Loans	$	2,870,871	$	2,546,512	$	2,063,941	$	1,410,944	$	529,690	$	892,018	$	2,164,828	$	7,223	$	12,486,027
Total current period gross charge-offs	$	14,338	$	4,012	$	1,350	$	5,894	$	338	$	2,107	$	—	$	—	$	28,039


	September 30, 2024
	Commercial Real Estate		Residential Real Estate		Other		Total		Allowance on Collateral Dependent Loans
Commercial and industrial loans	$	—	$	—	$	15,685	$	15,685	$	2,312

Real estate loans:
Construction	—		4		—		4		—
Commercial real estate, non-owner occupied	38,959		—		—		38,959		4,864
Commercial real estate, owner occupied	10,575		—		—		10,575		—
Residential	—		1,241		—		1,241		198
Home equity	—		206		—		206		26


Loans	$	49,534	$	1,451	$	15,685	$	66,670	$	7,400


	December 31, 2023
	Commercial Real Estate		Residential Real Estate		Other		Total		Allowance on Collateral Dependent Loans
Commercial and industrial loans	$	—	$	—	$	32,029	$	32,029	$	11,474

Real estate loans:
Construction	—		7		—		7		—
Commercial real estate, non-owner occupied	17,516		—		—		17,516		35
Commercial real estate, owner occupied	9,452		—		—		9,452		—
Residential	—		1,439		—		1,439		230
Home equity	—		223		—		223		30


Loans	$	26,968	$	1,669	$	32,029	$	60,666	$	11,769

Summary 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, as of the dates indicated:


	September 30, 2024
	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	$	4,023,016	$	1,906	$	7,805	$	8,490	$	4,041,217	$	930
Agricultural land, production and other loans to farmers	238,221		522		—		—		238,743		—
Real estate loans:
Construction	810,536		2,522		1,646		—		814,704		—
Commercial real estate, non-owner occupied	2,225,782		8,680		485		16,404		2,251,351		12,989
Commercial real estate, owner occupied	1,150,327		501		891		1,032		1,152,751		—
Residential	2,334,312		10,377		6,029		16,225		2,366,943		166
Home equity	632,653		3,212		1,532		3,791		641,188		20
Individuals' loans for household and other personal expenditures	155,526		2,567		385		2		158,480		—

Public finance and other commercial loans	981,431		—		—		—		981,431		—
Loans	$	12,551,804	$	30,287	$	18,773	$	45,944	$	12,646,808	$	14,105


	December 31, 2023
	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	$	3,657,447	$	5,021	$	1,622	$	6,858	$	3,670,948	$	86
Agricultural land, production and other loans to farmers	263,414		—		—		—		263,414		—
Real estate loans:
Construction	955,588		—		1,957		—		957,545		—
Commercial real estate, non-owner occupied	2,376,184		12,995		195		11,465		2,400,839		—
Commercial real estate, owner occupied	1,161,869		—		104		110		1,162,083		—
Residential	2,259,496		11,810		5,472		12,143		2,288,921		—
Home equity	608,948		3,614		1,647		3,362		617,571		52
Individuals' loans for household and other personal expenditures	167,553		635		192		8		168,388		—

Public finance and other commercial loans	956,284		—		—		34		956,318		34
Loans	$	12,406,783	$	34,075	$	11,189	$	33,980	$	12,486,027	$	172

Summary of Non-Accrual Loans by Loan class

The following table summarizes the Corporation’s nonaccrual loans by loan class as of the dates indicated.


	September 30, 2024				December 31, 2023
	Nonaccrual Loans		Nonaccrual Loans with no Allowance for Credit Losses		Nonaccrual Loans		Nonaccrual Loans with no Allowance for Credit Losses
Commercial and industrial loans	$	8,612	$	2,459	$	9,050	$	1,015
Agricultural land, production and other loans to farmers	81		—		58		—
Real estate loans:
Construction	—		—		520		—
Commercial real estate, non-owner occupied	23,283		10,175		11,932		11,095
Commercial real estate, owner occupied	3,237		2,577		3,041		2,257
Residential	18,905		—		25,140		—
Home equity	4,925		—		3,820		—
Individuals' loans for household and other personal expenditures	45		—		19		—

Loans	$	59,088	$	15,211	$	53,580	$	14,367

Summary of Modified Loans

The following tables present the amortized cost basis of loans at September 30, 2024 and 2023 that were both experiencing financial difficulty and modified during the three and nine months ended September 30, 2024 and 2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.


	Three Months Ended September 30, 2024
	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
	Payment Delay		Term Extension		Combination Payment Delay & Term Extension		Combination Interest Rate Reduction & Term Extension		Combination Interest Rate Reduction, Term Extension, & Payment Delay		% of Total Class of Financing Receivable
Commercial and industrial loans	$	9,600	$	10,333	$	—	$	31	$	—	0.49	%

Real estate loans:
Construction	—		915		22,000		—		—		2.81	%
Commercial real estate, non-owner occupied	—		10,254		—		10,828		—		0.94	%
Commercial real estate, owner occupied	—		5,841		—		—		—		0.51	%
Residential	493		56		—		—		304		0.04	%
Home equity	—		62		—		—		—		0.01	%


Total	$	10,093	$	27,461	$	22,000	$	10,859	$	304


	Three Months Ended September 30, 2023
	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
	Payment Delay		Term Extension		Combination Interest Rate Reduction & Term Extension		Combination Payment Delay & Term Extension		% of Total Class of Financing Receivable
Commercial and industrial loans	$	908	$	7,734	$	134	$	—		0.25	%

Real estate loans:

Commercial real estate, non-owner occupied	—		11,823		—		—			0.50	%
Commercial real estate, owner occupied	—		6,950		—		—			0.60	%

Home equity	—		63		—		—			0.01	%
Individuals' loans for household and other personal expenditures	—		—		—		1			—	%

Total	$	908	$	26,570	$	134	$	1



	Nine Months Ended September 30, 2024
	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
	Payment Delay		Term Extension		Interest Rate Reduction		Combination Payment Delay & Term Extension		Combination Interest Rate Reduction & Term Extension		Combination Interest Rate Reduction, Term Extension, & Payment Delay		% of Total Class of Financing Receivable
Commercial and industrial loans	$	11,080	$	12,880	$	247	$	17	$	31	$	—	0.60	%

Real estate loans:
Construction	—		915		—		22,000		—		—		2.81	%
Commercial real estate, non-owner occupied	—		18,933		—		—		10,828		—		1.32	%
Commercial real estate, owner occupied	—		6,208		—		—		—		—		0.54	%
Residential	1,931		341		—		283		—		529		0.13	%
Home Equity	—		62		—		162		—		—		0.03	%


Total	$	13,011	$	39,339	$	247	$	22,462	$	10,859	$	529


	Nine Months Ended September 30, 2023
	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
	Payment Delay		Term Extension		Combination Interest Rate Reduction & Term Extension		Combination Payment Delay & Term Extension		% of Total Class of Financing Receivable
Commercial and industrial loans	$	908	$	14,822	$	239	$	—	0.46	%
Agricultural land, production and other loans to farmers	—		34		—		—		0.01	%
Real estate loans:
Construction	—		13		—		—		—	%
Commercial real estate, non-owner occupied	—		11,823		5,942		—		0.75	%
Commercial real estate, owner occupied	5,602		8,642		75		—		1.24	%
Residential	—		—		—		472		0.02	%
Home equity	—		63		—		—		0.01	%
Individuals' loans for household and other personal expenditures	—		—		—		1		—	%

Total	$	6,510	$	35,397	$	6,256	$	473

Three Months Ended September 30, 2024

Financial Effect of Loan Modifications

Payment Delay

Term Extension

Combination Payment Delay & Term Extension

Combination Interest Rate Reduction & Term Extension

Combination Interest Rate Reduction, Term Extension & Payment Delay

Commercial and industrial loans

Provided payment deferrals with weighted average delayed amounts of $200,000.

Extended loans by a weighted average of 6 months.

Reduced the weighted average contractual interest rate from 9.50% to 8.05% and extended loans by a weighted average of 48 months.

Real estate loans:

Construction

Extended loans by a weighted average of 6 months.

Provided payment deferrals with weighted average delayed amounts of $475,000 and extended loans by a weighted average of 4 months.

Commercial real estate, non-owner occupied

Extended loans by a weighted average of 8 months.

Reduced the weighted average contractual interest rate from 12.38% to 7.88% and extended loans by a weighted average of 8 months.

Commercial real estate, owner occupied

Extended loans by a weighted average of 8 months.

Residential

Provided payment deferrals with weighted average delayed amounts of $8,000.

Extended loans by a weighted average of 92 months.

Home equity

Extended loans by a weighted average of 6 months.

Three Months Ended September 30, 2023

Financial Effect of Loan Modifications

Payment Delay

Term Extension

Combination Interest Rate Reduction & Term Extension

Combination Payment Delay & Term Extension

Commercial and industrial loans

Provided payment deferrals with weighted average delayed amounts of $24,000.

Extended loans by a weighted average of 8 months.

Reduced the weighted average contractual interest rate from 10.75% to 7.62%. Extended loans by a weighted average of 14 months.

Real estate loans:

Commercial real estate, non-owner occupied

Extended loans by a weighted average of 11 months.

Commercial real estate, owner occupied

Extended loans by a weighted average of 4 months.

Home Equity

Extended loans by a weighted average of 5 months.

Individuals' loans for household and other personal expenditures

Provided payment deferrals with weighted average delayed amounts of $300. Extended loans by a weighted average of 3 months.

Nine Months Ended September 30, 2024

Financial Effect of Loan Modifications

Payment Delay

Term Extension

Interest Rate Reduction

Combination Payment Delay & Term Extension

Combination Interest Rate Reduction & Term Extension

Combination Interest Rate Reduction, Term Extension & Payment Delay

Commercial and industrial loans

Provided payment deferrals with weighted average delayed amounts of $180,000.

Extended loans by a weighted average of 9 months.

Reduced the weighted average contractual interest rate from 9.00% to 8.00%.

Provided payment deferrals with weighted average delayed amounts of $4,900 and extended loans by a weighted average of 3 months.

Reduced the weighted average contractual interest rate from 9.50% to 8.05%. Extended loans by a weighted average of 48 months.

Real estate loans:

Construction

Extended loans by a weighted average of 6 months.

Provided payment deferrals with weighted average delayed amounts of $475,000 and extended loans by a weighted average of 4 months.

Commercial real estate, non-owner occupied

Extended loans by a weighted average of 13 months.

Reduced the weighted average contractual interest rate from 12.38% to 7.88%. Extended loans by a weighted average of 8 months.

Commercial real estate, owner occupied

Extended loans by a weighted average of 13 months.

Residential

Provided payment deferrals with weighted average delayed amounts of $26,000.

Extended loans by a weighted average of 20 months.

Provided payment deferrals with weighted average delayed amounts of $8,000 and extended loans by a weighted average of 153 months.

Home Equity

Extended loans by a weighted average of 6 months.

Provided payment deferrals with weighted average delayed amounts of $7,800 and extended loans by a weighted average of 60 months.

Nine Months Ended September 30, 2023

Financial Effect of Loan Modifications

Payment Delay

Term Extension

Combination Interest Rate Reduction & Term Extension

Combination Payment Delay & Term Extension

Commercial and industrial loans

Provided payment deferrals with weighted average delayed amounts of $24,000

Extended loans by a weighted average of 8 months.

Reduced the weighted average contractual interest rate from 9.66% to 7.39%. Extended loans by a weighted average of 13 months.

Agricultural land, production and other loans to farmers

Extended loans by a weighted average of 60 months.

Real estate loans:

Construction

Extended loans by a weighted average of 24 months.

Commercial real estate, non-owner occupied

Extended loans by a weighted average of 10 months.

Reduced the weighted average contractual interest rate from 7.81% to 7.40%. Extended loans by a weighted average of 41 months.

Commercial real estate, owner occupied

Provided payment deferrals with weighted average delayed amounts of $4,500,000.

Extended loans by a weighted average of 4 months.

Reduced the weighted average contractual interest rate from 10.25% to 6.61%. Extended loans by a weighted average of 114 months.

Residential

Provided payment deferrals with weighted average delayed amounts $3,400. Extended loans by a weighted average of 3 months.

Home Equity

Extended loans by a weighted average of 5 months.

Provided payment deferrals with weighted average delayed amounts $300. Extended loans by a weighted average of 3 months.


	September 30, 2024

	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Commercial and industrial loans	$	24,445	$	—	$	1,927	$	—	$	26,372
Agricultural land, production and other loans to farmers	22		—		—		—		22
Real estate loans:									—
Construction	22,915		—		—		—		22,915
Commercial real estate, non-owner occupied	21,082		8,680		—		1,730		31,492
Commercial real estate, owner occupied	7,523		—		—		—		7,523
Residential	1,940		—		250		1,189		3,379
Home equity	252		—		—		—		252


Total	$	78,179	$	8,680	$	2,177	$	2,919	$	91,955


	September 30, 2023

	Current		30-59 Days Past Due		60-89 Days Past Due		Total
Commercial and industrial loans	$	15,863	$	—	$	106	$	15,969
Agricultural land, production and other loans to farmers	34		—		—		34
Real estate loans:							—
Construction	13		—		—		13
Commercial real estate, non-owner occupied	17,765		—		—		17,765
Commercial real estate, owner occupied	13,157		—		1,162		14,319
Residential	472		—		—		472
Home equity	63		—		—		63
Individuals' loans for household and other personal expenditures	—		1		—		1

Total	$	47,367	$	1	$	1,268	$	48,636

Summary of Changes in Allowance for Loan Losses

The following tables summarize changes in the allowance for credit losses by loan segment for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30, 2024
	Commercial		Commercial Real Estate		Construction		Consumer & Residential		Total
Allowance for credit losses - loans
Balances, June 30, 2024	$	91,217	$	45,514	$	14,360	$	38,446	$	189,537



Provision for credit losses - loans	8,456		1,873		(2,609)		(2,720)		5,000


Recoveries on loans	505		18		—		371		894
Loans charged off	(6,375)		—		—		(1,228)		(7,603)
Balances, September 30, 2024	$	93,803	$	47,405	$	11,751	$	34,869	$	187,828


	Three Months Ended September 30, 2023
	Commercial		Commercial Real Estate		Construction		Consumer & Residential		Total
Allowance for credit losses - loans
Balances, June 30, 2023	$	108,373	$	39,157	$	30,073	$	43,544	$	221,147
Provision for credit losses - loans	3,020		4,901		140		(3,061)		5,000


Recoveries on loans	179		—		—		367		546
Loans charged off	(19,833)		—		—		(1,078)		(20,911)
Balances, September 30, 2023	$	91,739	$	44,058	$	30,213	$	39,772	$	205,782



	Nine Months Ended September 30, 2024
	Commercial		Commercial Real Estate		Construction		Consumer & Residential		Total
Allowance for credit losses - loans
Balances, December 31, 2023	$	97,348	$	44,048	$	24,823	$	38,715	$	204,934
Provision for credit losses - loans	43,249		3,476		(13,072)		(2,153)		31,500


Recoveries on loans	1,592		232		—		1,227		3,051
Loans charged off	(48,386)		(351)		—		(2,920)		(51,657)
Balances, September 30, 2024	$	93,803	$	47,405	$	11,751	$	34,869	$	187,828



	Nine Months Ended September 30, 2023
	Commercial		Commercial Real Estate		Construction		Consumer & Residential		Total
Allowance for credit losses - loans
Balances, December 31, 2022	$	102,216	$	46,839	$	28,955	$	45,267	$	223,277
Provision for credit losses - loans	9,460		(2,833)		1,258		(2,885)		5,000


Recoveries on loans	775		56		—		1,004		1,835
Loans charged off	(20,712)		(4)		—		(3,614)		(24,330)
Balances, September 30, 2023	$	91,739	$	44,058	$	30,213	$	39,772	$	205,782

Summary of Financial Instruments with Off-balance Sheet Risk

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


	September 30, 2024		December 31, 2023
Amounts of commitments:
Loan commitments to extend credit	$	5,493,144	$	5,025,790
Standby letters of credit	$	66,043	$	65,580

Summary of Allowance for Credit Losses, Off-balance Sheet

The table below reflects the total allowance for credit losses for the off-balance sheet commitment for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Balance at beginning of the period	$	19,500	$	23,300	$	19,500	$	23,300


Provision for credit losses - unfunded commitments	—		(3,000)		—		(3,000)
Ending balance	$	19,500	$	20,300	$	19,500	$	20,300

INVESTMENT SECURITIES - Amortized Cost of Investment Securities Held to Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Schedule of Held-to-maturity Securities [Line Items]
Total	$ 2,108,894	$ 2,184,497
Aaa
Schedule of Held-to-maturity Securities [Line Items]
Total	1,132,647
Aa1
Schedule of Held-to-maturity Securities [Line Items]
Total	160,281
Aa2
Schedule of Held-to-maturity Securities [Line Items]
Total	177,858
Aa3
Schedule of Held-to-maturity Securities [Line Items]
Total	112,393
A1
Schedule of Held-to-maturity Securities [Line Items]
Total	141,608
A2
Schedule of Held-to-maturity Securities [Line Items]
Total	20,313
Non-rated
Schedule of Held-to-maturity Securities [Line Items]
Total	363,794
U.S. Government-sponsored agency securities
Schedule of Held-to-maturity Securities [Line Items]
Total	361,335	374,002
U.S. Government-sponsored agency securities \| Aaa
Schedule of Held-to-maturity Securities [Line Items]
Total	361,335
U.S. Government-sponsored agency securities \| Aa1
Schedule of Held-to-maturity Securities [Line Items]
Total	0
U.S. Government-sponsored agency securities \| Aa2
Schedule of Held-to-maturity Securities [Line Items]
Total	0
U.S. Government-sponsored agency securities \| Aa3
Schedule of Held-to-maturity Securities [Line Items]
Total	0
U.S. Government-sponsored agency securities \| A1
Schedule of Held-to-maturity Securities [Line Items]
Total	0
U.S. Government-sponsored agency securities \| A2
Schedule of Held-to-maturity Securities [Line Items]
Total	0
U.S. Government-sponsored agency securities \| Non-rated
Schedule of Held-to-maturity Securities [Line Items]
Total	0
State and municipal
Schedule of Held-to-maturity Securities [Line Items]
Total	1,087,980	1,099,201
State and municipal \| Aaa
Schedule of Held-to-maturity Securities [Line Items]
Total	113,233
State and municipal \| Aa1
Schedule of Held-to-maturity Securities [Line Items]
Total	160,281
State and municipal \| Aa2
Schedule of Held-to-maturity Securities [Line Items]
Total	177,858
State and municipal \| Aa3
Schedule of Held-to-maturity Securities [Line Items]
Total	112,393
State and municipal \| A1
Schedule of Held-to-maturity Securities [Line Items]
Total	141,608
State and municipal \| A2
Schedule of Held-to-maturity Securities [Line Items]
Total	20,313
State and municipal \| Non-rated
Schedule of Held-to-maturity Securities [Line Items]
Total	362,294
U.S. Government-sponsored mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Total	658,079	$ 709,794
U.S. Government-sponsored mortgage-backed securities \| Aaa
Schedule of Held-to-maturity Securities [Line Items]
Total	658,079
U.S. Government-sponsored mortgage-backed securities \| Aa1
Schedule of Held-to-maturity Securities [Line Items]
Total	0
U.S. Government-sponsored mortgage-backed securities \| Aa2
Schedule of Held-to-maturity Securities [Line Items]
Total	0
U.S. Government-sponsored mortgage-backed securities \| Aa3
Schedule of Held-to-maturity Securities [Line Items]
Total	0
U.S. Government-sponsored mortgage-backed securities \| A1
Schedule of Held-to-maturity Securities [Line Items]
Total	0
U.S. Government-sponsored mortgage-backed securities \| A2
Schedule of Held-to-maturity Securities [Line Items]
Total	0
U.S. Government-sponsored mortgage-backed securities \| Non-rated
Schedule of Held-to-maturity Securities [Line Items]
Total	0
Foreign investment
Schedule of Held-to-maturity Securities [Line Items]
Total	1,500
Foreign investment \| Aaa
Schedule of Held-to-maturity Securities [Line Items]
Total	0
Foreign investment \| Aa1
Schedule of Held-to-maturity Securities [Line Items]
Total	0
Foreign investment \| Aa2
Schedule of Held-to-maturity Securities [Line Items]
Total	0
Foreign investment \| Aa3
Schedule of Held-to-maturity Securities [Line Items]
Total	0
Foreign investment \| A1
Schedule of Held-to-maturity Securities [Line Items]
Total	0
Foreign investment \| A2
Schedule of Held-to-maturity Securities [Line Items]
Total	0
Foreign investment \| Non-rated
Schedule of Held-to-maturity Securities [Line Items]
Total	$ 1,500

INVESTMENT SECURITIES - Investments' Gross Unrealized Losses and Fair Value Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position (Details) $ in Thousands	Sep. 30, 2024 USD ($) security	Dec. 31, 2023 USD ($) security
Fair Value
Less than 12 Months	$ 59,052	$ 67,007
12 Months or Longer	1,378,921	1,493,547
Total	1,437,973	1,560,554
Gross Unrealized Losses
Less than 12 Months	1,412	1,101
12 Months or Longer	190,313	219,453
Total	$ 191,725	$ 220,554
Number of Securities \| security	793	865
U.S. Government-sponsored agency securities
Fair Value
Less than 12 Months	$ 0	$ 0
12 Months or Longer	85,033	95,307
Total	85,033	95,307
Gross Unrealized Losses
Less than 12 Months	0	0
12 Months or Longer	12,637	16,214
Total	$ 12,637	$ 16,214
Number of Securities \| security	13	14
State and municipal
Fair Value
Less than 12 Months	$ 40,136	$ 55,514
12 Months or Longer	934,947	963,584
Total	975,083	1,019,098
Gross Unrealized Losses
Less than 12 Months	1,335	1,076
12 Months or Longer	105,602	115,146
Total	$ 106,937	$ 116,222
Number of Securities \| security	662	691
U.S. Government-sponsored mortgage-backed securities
Fair Value
Less than 12 Months	$ 18,916	$ 11,493
12 Months or Longer	346,666	422,868
Total	365,582	434,361
Gross Unrealized Losses
Less than 12 Months	77	25
12 Months or Longer	71,423	86,965
Total	$ 71,500	$ 86,990
Number of Securities \| security	108	150
Corporate obligations
Fair Value
Less than 12 Months	$ 0	$ 0
12 Months or Longer	12,275	11,788
Total	12,275	11,788
Gross Unrealized Losses
Less than 12 Months	0	0
12 Months or Longer	651	1,128
Total	$ 651	$ 1,128
Number of Securities \| security	10	10

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash Flow From Operating Activities:
Net income	$ 137,053	$ 181,307
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	31,500	2,000
Depreciation and amortization	10,602	8,666
Change in deferred taxes	3,128	3,957
Share-based compensation	4,191	3,792
Loans originated for sale	(775,504)	(567,626)
Proceeds from sales of loans held for sale	773,446	551,613
Gains on sales of loans held for sale	(10,508)	(5,865)
Net losses on sales and redemptions of securities available for sale	9,165	4,613
Increase in cash surrender value of life insurance	(4,128)	(3,813)
Gains on life insurance benefits	(2,148)	(1,332)
Change in interest receivable	5,585	(4,941)
Change in interest payable	(319)	8,943
Other adjustments	16,643	11,904
Net cash provided by operating activities	198,706	193,218
Cash Flows from Investing Activities:
Net change in interest-bearing deposits	76,954	(222,578)
Purchases of:
Securities available for sale	(93,463)	(12,543)
Securities held to maturity	0	(5,653)
Proceeds from sales of securities available for sale	149,771	347,318
Proceeds from maturities and redemptions of:
Securities available for sale	33,346	44,925
Securities held to maturity	72,938	76,427
Change in Federal Home Loan Bank stock	53	(3,272)
Payment of capital calls to qualified affordable housing investments	(22,238)	(7,478)
Net change in loans	(206,478)	(404,833)
Proceeds from the sale of other real estate owned	325	1,175
Proceeds from life insurance benefits	7,964	7,350
Other adjustments	(25,046)	(40,257)
Net cash used in investing activities	(885)	(107,295)
Net change in:
Demand and savings deposits	(308,714)	(581,735)
Certificates of deposit and other time deposits	140,074	845,566
Borrowings	551,851	754,229
Repayment of borrowings	(499,542)	(1,043,588)
Cash dividends on preferred stock	(1,406)	(1,406)
Cash dividends on common stock	(61,146)	(59,713)
Stock issued under employee benefit plans	511	590
Stock issued under dividend reinvestment and stock purchase plans	1,676	1,603
Stock options exercised	900	1,110
Repurchase of common stock	(49,955)	0
Net cash used in financing activities	(225,751)	(83,344)
Net Change in Cash and Cash Equivalents	(27,930)	2,579
Cash and Cash Equivalents, January 1	112,649	122,594
Cash and Cash Equivalents, September 30	84,719	125,173
Additional cash flow information:
Interest paid	327,443	232,616
Income tax paid (refunded)	6,407	32,741
Loans transferred to other real estate owned	699	1,224
Fixed assets transferred to other real estate owned	69	3,226
Non-cash investing activities using trade date accounting	17,749	4,462
ROU assets obtained in exchange for new operating lease liabilities	6,918	1,630
Qualified affordable housing investments obtained in exchange for funding commitments	40,500	25,200
Reclassification of loans and other branch assets to held for sale	13,404	0
Reclassification of deposits and other branch liabilities to held for sale	288,476	0
Mortgage Loan
Proceeds from maturities and redemptions of:
Proceeds from portfolio loan sale	1,716	0
Commercial
Proceeds from maturities and redemptions of:
Proceeds from portfolio loan sale	$ 3,273	$ 112,124

SHARE-BASED COMPENSATION - Narrative (Details) - USD ($)		9 Months Ended
	Jul. 01, 2024	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeiture rate		0.05%
Aggregate intrinsic value of stock options exercised		$ 707,000	$ 1,400,000
Cash receipts of stock options exercised		$ 900,000	$ 1,110,000
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 related to stock options		$ 0
Stock Options \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested period		1 year
Stock Options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested period		2 years
RSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested period		3 years
Unrecognized compensation expense related to RSAs		$ 11,900,000
Unrecognized compensation expense expected recognition period		1 year 10 months 24 days
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of average closing price to be paid by employees		85.00%
Maximum common stock purchases through advance payroll deductions in a calendar year		$ 25,000
Grant date fair value	$ 28,000
Unrecognized compensation expense related to stock options		$ 0

FAIR VALUES OF FINANCIAL INSTRUMENTS - Valuation Methodologies Used for Instruments Measured at Fair Value on Non-Recurring Basis (Details) - Nonrecurring - Collateral dependent loans - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	$ 55,211	$ 55,020
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent loans	$ 55,211	$ 55,020

SHARE-BASED COMPENSATION - Unvested RSAs Outstanding (Details) - RSAs	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Number of Shares
Unvested RSAs, Beginning balance (in shares) \| shares	452,426
Granted (in shares) \| shares	192,663
Vested (in shares) \| shares	(83,356)
Forfeited (in shares) \| shares	(6,225)
Unvested RSAs, Ending balance (in shares) \| shares	555,508
Weighted-Average Grant Date Fair Value
Unvested RSAs, Beginning balance (in dollars per share) \| $ / shares	$ 37.94
Granted (in dollars per share) \| $ / shares	35.93
Vested (in dollars per share) \| $ / shares	42.84
Forfeited (in dollars per share) \| $ / shares	39.63
Unvested RSAs, Ending balance (in dollars per share) \| $ / shares	$ 36.49

BORROWINGS - Summary of Contractual Maturities of Borrowings (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Federal Funds Purchased
Maturities in Years Ending December 31:
2024	$ 30,000
2025	0
2026	0
2027	0
2028	0
2029 and after	0
ASC 805 fair value adjustments at acquisition	0
Debt outstanding	30,000
Securities Sold Under Repurchase Agreements
Maturities in Years Ending December 31:
2024	124,894
2025	0
2026	0
2027	0
2028	0
2029 and after	0
ASC 805 fair value adjustments at acquisition	0
Debt outstanding	124,894
Federal Home Loan Bank Advances
Maturities in Years Ending December 31:
2024	10,000
2025	95,000
2026	75,000
2027	250,000
2028	190,000
2029 and after	212,629
ASC 805 fair value adjustments at acquisition	0
Debt outstanding	832,629
Subordinated Debentures and Term Loans
Maturities in Years Ending December 31:
2024	1,164
2025	0
2026	0
2027	0
2028	5,000
2029 and after	90,846
ASC 805 fair value adjustments at acquisition	(3,448)
Debt outstanding	$ 93,562	$ 158,600

INVESTMENT SECURITIES (Tables)

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

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

The following tables summarize the amortized cost, gross unrealized gains and losses and approximate fair value of investment securities available for sale as of September 30, 2024 and December 31, 2023.


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale at September 30, 2024

U.S. Government-sponsored agency securities	$	97,670	$	—	$	12,637	$	85,033
State and municipal	1,090,953		95		106,937		984,111
U.S. Government-sponsored mortgage-backed securities	541,099		2,447		71,500		472,046
Corporate obligations	12,957		—		651		12,306

Total available for sale	$	1,742,679	$	2,542	$	191,725	$	1,553,496


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale at December 31, 2023

U.S. Government-sponsored agency securities	$	111,521	$	—	$	16,214	$	95,307
State and municipal	1,181,029		364		116,222		1,065,171
U.S. Government-sponsored mortgage-backed securities	541,343		462		86,990		454,815
Corporate obligations	12,947		—		1,128		11,819

Total available for sale	$	1,846,840	$	826	$	220,554	$	1,627,112

The following tables summarize the amortized cost, gross unrealized gains and losses, approximate fair value and allowance for credit losses on investment securities held to maturity as of September 30, 2024 and December 31, 2023.


	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held to maturity at September 30, 2024
U.S. Government-sponsored agency securities	$	361,335	$	—	$	361,335	$	—	$	53,432	$	307,903
State and municipal	1,087,980		245		1,087,735		1,157		151,227		937,910
U.S. Government-sponsored mortgage-backed securities	658,079		—		658,079		—		82,382		575,697
Foreign investment	1,500		—		1,500		—		4		1,496
Total held to maturity	$	2,108,894	$	245	$	2,108,649	$	1,157	$	287,045	$	1,823,006


	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held to maturity at December 31, 2023
U.S. Government-sponsored agency securities	$	374,002	$	—	$	374,002	$	—	$	64,159	$	309,843
State and municipal	1,099,201		245		1,098,956		1,625		152,113		948,713
U.S. Government-sponsored mortgage-backed securities	709,794		—		709,794		—		99,448		610,346
Foreign investment	1,500		—		1,500		—		28		1,472
Total held to maturity	$	2,184,497	$	245	$	2,184,252	$	1,625	$	315,748	$	1,870,374

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

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 September 30, 2024, aggregated by credit quality indicator.


	Held to Maturity
	U.S. Government-sponsored agency securities (1)		State and municipal		U.S. Government-sponsored mortgage-backed securities (1)		Foreign investment		Total
Credit Rating:
Aaa	$	361,335	$	113,233	$	658,079	$	—	$	1,132,647
Aa1	—		160,281		—		—		160,281
Aa2	—		177,858		—		—		177,858
Aa3	—		112,393		—		—		112,393
A1	—		141,608		—		—		141,608
A2	—		20,313		—		—		20,313


Non-rated	—		362,294		—		1,500		363,794
Total	$	361,335	$	1,087,980	$	658,079	$	1,500	$	2,108,894

(1) U.S. Government agency securities and U.S. Government mortgage-backed securities are included within the Aaa credit rating category due to their explicit or implicit government guarantees, which provide a high level of assurance regarding the timely collection of principal and interest payments.

Summary of Investment Securities in a Continuous Unrealized Loss Position

The following tables summarize, as of September 30, 2024 and December 31, 2023, 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 September 30, 2024

U.S. Government-sponsored agency securities	$	—	$	—	$	85,033	$	12,637	$	85,033	$	12,637
State and municipal	40,136		1,335		934,947		105,602		975,083		106,937
U.S. Government-sponsored mortgage-backed securities	18,916		77		346,666		71,423		365,582		71,500
Corporate obligations	—		—		12,275		651		12,275		651
Total investment securities available for sale	$	59,052	$	1,412	$	1,378,921	$	190,313	$	1,437,973	$	191,725


	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, 2023

U.S. Government-sponsored agency securities	$	—	$	—	$	95,307	$	16,214	$	95,307	$	16,214
State and municipal	55,514		1,076		963,584		115,146		1,019,098		116,222
U.S. Government-sponsored mortgage-backed securities	11,493		25		422,868		86,965		434,361		86,990
Corporate obligations	—		—		11,788		1,128		11,788		1,128
Total investment securities available for sale	$	67,007	$	1,101	$	1,493,547	$	219,453	$	1,560,554	$	220,554

The following tables summarize 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 as of the dates indicated.


	Gross Unrealized Losses		Number of Securities
Investment securities available for sale at September 30, 2024

U.S. Government-sponsored agency securities	$	12,637	13
State and municipal	106,937		662
U.S. Government-sponsored mortgage-backed securities	71,500		108
Corporate obligations	651		10
Total investment securities available for sale	$	191,725	793


	Gross Unrealized Losses		Number of Securities
Investment securities available for sale at December 31, 2023

U.S. Government-sponsored agency securities	$	16,214	14
State and municipal	116,222		691
U.S. Government-sponsored mortgage-backed securities	86,990		150
Corporate obligations	1,128		10
Total investment securities available for sale	$	220,554	865

Summary 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.


	September 30, 2024			December 31, 2023

Historical cost	$	1,629,698		$	1,781,108
Fair value	1,437,973			1,560,554
Gross unrealized losses	$	191,725		$	220,554
Percentage of the Corporation's investment securities available for sale in an unrealized loss position	92.6		%	95.9		%

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

The amortized cost and fair value of investment securities available for sale and held to maturity at September 30, 2024 and December 31, 2023, 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 September 30, 2024
Due in one year or less	$	1,809	$	1,800	$	15,139	$	15,096
Due after one through five years	12,818		12,578		121,204		116,480
Due after five through ten years	162,996		151,369		165,418		151,803
Due after ten years	1,023,957		915,703		1,149,054		963,930
	1,201,580		1,081,450		1,450,815		1,247,309
U.S. Government-sponsored mortgage-backed securities	541,099		472,046		658,079		575,697

Total investment securities	$	1,742,679	$	1,553,496	$	2,108,894	$	1,823,006


	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturity Distribution at December 31, 2023
Due in one year or less	$	1,390	$	1,382	$	3,041	$	3,043
Due after one through five years	24,899		23,372		118,592		111,723
Due after five through ten years	127,948		120,385		135,805		126,461
Due after ten years	1,151,260		1,027,158		1,217,265		1,018,801
	1,305,497		1,172,297		1,474,703		1,260,028
U.S. Government-sponsored mortgage-backed securities	541,343		454,815		709,794		610,346

Total investment securities	$	1,846,840	$	1,627,112	$	2,184,497	$	1,870,374

Summary of Gross Gains and Losses on Sales and Redemptions of Available for Sale Securities

Gross gains and losses on the sales of investment securities available for sale for the three and nine months ended September 30, 2024 and 2023 are shown below.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Sales and redemptions of investment securities available for sale:
Gross gains	$	7	$	—	$	7	$	759
Gross losses	(9,121)		(1,650)		(9,172)		(5,372)

Net gains (losses) on sales and redemptions of investment securities available for sale	$	(9,114)	$	(1,650)	$	(9,165)	$	(4,613)

SHARE-BASED COMPENSATION - Components of Awards (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax compensation expense	$ 1,437	$ 1,360	$ 4,191	$ 3,792
Income tax expense (benefit)	(204)	(393)	(767)	(968)
Total share-based compensation expense, net of income taxes	1,233	967	3,424	2,824
Stock and ESPP Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax compensation expense	28	35	130	80
Income tax expense (benefit)	0	0	(40)	(62)
Total share-based compensation expense, net of income taxes	28	35	90	18
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax compensation expense	1,409	1,325	4,061	3,712
Income tax expense (benefit)	(204)	(393)	(727)	(906)
Total share-based compensation expense, net of income taxes	$ 1,205	$ 932	$ 3,334	$ 2,806

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(ii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iii)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(01)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(02)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(03)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(04)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (c)(2)(i)
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-URI https://asc.fasb.org/1943274/2147480429/718-10-50-2

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 23: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

NET INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Net Income Available to Common Stockholders
Net income available to common stockholders	$ 48,719	$ 55,898	$ 135,647	$ 179,901
Diluted net income per common share	$ 48,719	$ 55,898	$ 135,647	$ 179,901
Weighted-Average Common Shares
Net income available to common stockholders (in shares)	58,074,361	59,335,877	58,413,814	59,272,401
Effect of potentially dilutive stock options and restricted stock awards (in shares)	215,128	166,648	215,185	192,997
Diluted net income per common share (in shares)	58,289,489	59,502,525	58,628,999	59,465,398
RSAs excluded from the diluted average common share calculation (in shares)	94,650	155,653	122,134	64,646
Per Share Amount
Net income available to common stockholders (in dollars per share)	$ 0.84	$ 0.95	$ 2.32	$ 3.04
Diluted net income per common share (in dollars per share)	$ 0.84	$ 0.94	$ 2.31	$ 3.03

INCOME TAX

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

INCOME TAX


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023








Reconciliation of Federal Statutory to Actual Tax Expense:
Federal statutory income tax at 21%	$	11,833		$	13,728		$	32,572		$	44,589
Tax-exempt interest income	(4,409)			(4,469)			(13,157)			(13,792)
Non-deductible FDIC premiums	180			126			462			299
Share-based compensation	98			(108)			113			(172)
Tax-exempt earnings and gains on life insurance	(579)			(369)			(1,318)			(1,080)
Tax credits	(305)			(84)			(969)			(249)

State Income Tax	333			254			142			1,474
Other	9			(73)			207			(48)
Actual Tax Expense	$	7,160		$	9,005		$	18,052		$	31,021

Effective Tax Rate	12.7		%	13.8		%	11.6		%	14.6		%

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
-Section 50
-Paragraph 12B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-13

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/740/tableOfContent

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
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-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-17

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

QUALIFIED AFFORDABLE HOUSING INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Summary of Affordable Housing Investments

The following table summarizes the Corporation’s affordable housing investments as of September 30, 2024 and December 31, 2023:


	September 30, 2024				December 31, 2023
Investment Type	Investment		Unfunded Commitment		Investment		Unfunded Commitment
LIHTC	$	149,830	$	114,756	$	114,514	$	96,408


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Amortization expense	$	1,695	$	2,242	$	5,018	$	4,080
Tax credits recognized	1,644		1,855		4,933		3,472

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 49,187	$ 56,366	$ 137,053	$ 181,307
Unrealized gains (losses) on securities available-for-sale:
Unrealized holding gain (loss) arising during the period	67,030	(114,630)	21,399	(90,675)
Reclassification adjustment for losses included in net income	9,114	1,650	9,165	4,613
Tax effect	(15,990)	23,726	(6,419)	18,073
Net of tax	60,154	(89,254)	24,145	(67,989)
Unrealized gain (loss) on cash flow hedges:
Unrealized holding gain (loss) arising during the period	0	(66)	0	(179)
Reclassification adjustment for losses (gains) included in net income	0	0	0	15
Tax effect	0	14	0	34
Net of tax	0	(52)	0	(130)
Total other comprehensive income (loss), net of tax	60,154	(89,306)	24,145	(68,119)
Comprehensive income (loss)	$ 109,341	$ (32,940)	$ 161,198	$ 113,188

ACQUISITIONS AND DISPOSITIONS	9 Months Ended
ACQUISITIONS AND DISPOSITIONS	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
ACQUISITIONS AND DISPOSITIONS	ACQUISITIONS AND DISPOSITIONS Old Second National Bank Branch Sale On August 26, 2024, the Bank entered into a Branch Purchase and Assumption Agreement with Old Second National Bank, a national banking association headquartered in Aurora, Illinois, pursuant to which the Bank will sell five branches located in Illinois. The transaction will represent an exit from the suburban Chicago markets. Loans of $9.2 million, deposits of $287.7 million and fixed assets of $3.4 million have been moved to held for sale categories as of September 30, 2024. The transaction is expected to close in the fourth quarter of 2024.

ACCUMULATED OTHER COMPREHENSIVE LOSS

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table summarizes the changes in the balances of each component of accumulated other comprehensive loss, net of tax, as of September 30, 2024 and 2023:


	Accumulated Other Comprehensive 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, 2023	$	(173,654)	$	—	$	(2,316)	$	(175,970)
Other comprehensive income before reclassifications	16,905		—		—		16,905
Amounts reclassified from accumulated other comprehensive loss	7,240		—		—		7,240
Period change	24,145		—		—		24,145

Balance at September 30, 2024	$	(149,509)	$	—	$	(2,316)	$	(151,825)


Balance at December 31, 2022	$	(234,495)	$	130	$	(4,786)	$	(239,151)
Other comprehensive loss before reclassifications	(71,633)		(142)		—		(71,775)
Amounts reclassified from accumulated other comprehensive loss	3,644		12		—		3,656
Period change	(67,989)		(130)		—		(68,119)

Balance at September 30, 2023	$	(302,484)	$	—	$	(4,786)	$	(307,270)


	Amount Reclassified from Accumulated Other Comprehensive Loss For the Three Months Ended September 30,
Details about Accumulated Other Comprehensive Loss Components	2024		2023		Affected Line Item in the Statements of Income
Unrealized gains (losses) on available for sale securities (1)
Realized securities gains (losses) reclassified into income	$	(9,114)	$	(1,650)	Other income - net realized gains (losses) on sales of available for sale securities
Related income tax benefit (expense)	1,914		346		Income tax expense
	$	(7,200)	$	(1,304)

Unrealized gains (losses) on cash flow hedges (2)
Interest rate contracts	$	—	$	—	Interest expense - subordinated debentures and term loans
Related income tax benefit (expense)	—		—		Income tax expense
	$	—	$	—






Total reclassifications for the period, net of tax	$	(7,200)	$	(1,304)




	Amount Reclassified from Accumulated Other Comprehensive Loss For the Nine Months Ended September 30,
Details about Accumulated Other Comprehensive Loss Components	2024		2023		Affected Line Item in the Statements of Income
Unrealized gains (losses) on available for sale securities (1)
Realized securities gains reclassified into income	$	(9,165)	$	(4,613)	Other income - net realized gains on sales of available for sale securities
Related income tax benefit (expense)	1,925		969		Income tax expense
	$	(7,240)	$	(3,644)

Unrealized gains (losses) on cash flow hedges (2)
Interest rate contracts	$	—	$	(15)	Interest expense - subordinated debentures and term loans
Related income tax benefit (expense)	—		3		Income tax expense
	$	—	$	(12)






Total reclassifications for the period, net of tax	$	(7,240)	$	(3,656)

INVESTMENT SECURITIES

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale at September 30, 2024

U.S. Government-sponsored agency securities	$	97,670	$	—	$	12,637	$	85,033
State and municipal	1,090,953		95		106,937		984,111
U.S. Government-sponsored mortgage-backed securities	541,099		2,447		71,500		472,046
Corporate obligations	12,957		—		651		12,306

Total available for sale	$	1,742,679	$	2,542	$	191,725	$	1,553,496


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale at December 31, 2023

U.S. Government-sponsored agency securities	$	111,521	$	—	$	16,214	$	95,307
State and municipal	1,181,029		364		116,222		1,065,171
U.S. Government-sponsored mortgage-backed securities	541,343		462		86,990		454,815
Corporate obligations	12,947		—		1,128		11,819

Total available for sale	$	1,846,840	$	826	$	220,554	$	1,627,112


	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held to maturity at September 30, 2024
U.S. Government-sponsored agency securities	$	361,335	$	—	$	361,335	$	—	$	53,432	$	307,903
State and municipal	1,087,980		245		1,087,735		1,157		151,227		937,910
U.S. Government-sponsored mortgage-backed securities	658,079		—		658,079		—		82,382		575,697
Foreign investment	1,500		—		1,500		—		4		1,496
Total held to maturity	$	2,108,894	$	245	$	2,108,649	$	1,157	$	287,045	$	1,823,006


	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Held to maturity at December 31, 2023
U.S. Government-sponsored agency securities	$	374,002	$	—	$	374,002	$	—	$	64,159	$	309,843
State and municipal	1,099,201		245		1,098,956		1,625		152,113		948,713
U.S. Government-sponsored mortgage-backed securities	709,794		—		709,794		—		99,448		610,346
Foreign investment	1,500		—		1,500		—		28		1,472
Total held to maturity	$	2,184,497	$	245	$	2,184,252	$	1,625	$	315,748	$	1,870,374

Accrued interest on investment securities available for sale and held to maturity at September 30, 2024 and December 31, 2023 of $21.7 million and $25.2 million, respectively, are included in the Interest Receivable line on the Corporation's Consolidated Condensed Balance Sheets. The total amount of accrued interest is excluded from the amortized cost of available for sale and held to maturity securities presented above.

In determining the allowance for credit losses on investment securities available for sale that are in an unrealized loss position, the Corporation first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through the income statement. For investment securities available for sale that do not meet the aforementioned criteria, the Corporation evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Corporation considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Unrealized losses that have not been recorded through an allowance for credit losses is recognized in other comprehensive loss. Adjustments to the allowance are reported in the income statement as a component of the provision for credit losses. 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 losses. 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 U.S. Government-sponsored 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 September 30, 2024, there were no past due

principal and interest payments associated with these securities. The balance of the allowance for credit losses on investment securities held to maturity remained unchanged at $245,000 as of September 30, 2024 and December 31, 2023 based on applying the long-term historical credit rate, as published by Moody's, for similar rated securities.


	Held to Maturity
	U.S. Government-sponsored agency securities (1)		State and municipal		U.S. Government-sponsored mortgage-backed securities (1)		Foreign investment		Total
Credit Rating:
Aaa	$	361,335	$	113,233	$	658,079	$	—	$	1,132,647
Aa1	—		160,281		—		—		160,281
Aa2	—		177,858		—		—		177,858
Aa3	—		112,393		—		—		112,393
A1	—		141,608		—		—		141,608
A2	—		20,313		—		—		20,313


Non-rated	—		362,294		—		1,500		363,794
Total	$	361,335	$	1,087,980	$	658,079	$	1,500	$	2,108,894


	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 September 30, 2024

U.S. Government-sponsored agency securities	$	—	$	—	$	85,033	$	12,637	$	85,033	$	12,637
State and municipal	40,136		1,335		934,947		105,602		975,083		106,937
U.S. Government-sponsored mortgage-backed securities	18,916		77		346,666		71,423		365,582		71,500
Corporate obligations	—		—		12,275		651		12,275		651
Total investment securities available for sale	$	59,052	$	1,412	$	1,378,921	$	190,313	$	1,437,973	$	191,725


	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, 2023

U.S. Government-sponsored agency securities	$	—	$	—	$	95,307	$	16,214	$	95,307	$	16,214
State and municipal	55,514		1,076		963,584		115,146		1,019,098		116,222
U.S. Government-sponsored mortgage-backed securities	11,493		25		422,868		86,965		434,361		86,990
Corporate obligations	—		—		11,788		1,128		11,788		1,128
Total investment securities available for sale	$	67,007	$	1,101	$	1,493,547	$	219,453	$	1,560,554	$	220,554


	Gross Unrealized Losses		Number of Securities
Investment securities available for sale at September 30, 2024

U.S. Government-sponsored agency securities	$	12,637	13
State and municipal	106,937		662
U.S. Government-sponsored mortgage-backed securities	71,500		108
Corporate obligations	651		10
Total investment securities available for sale	$	191,725	793


	Gross Unrealized Losses		Number of Securities
Investment securities available for sale at December 31, 2023

U.S. Government-sponsored agency securities	$	16,214	14
State and municipal	116,222		691
U.S. Government-sponsored mortgage-backed securities	86,990		150
Corporate obligations	1,128		10
Total investment securities available for sale	$	220,554	865

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.


	September 30, 2024			December 31, 2023

Historical cost	$	1,629,698		$	1,781,108
Fair value	1,437,973			1,560,554
Gross unrealized losses	$	191,725		$	220,554
Percentage of the Corporation's investment securities available for sale in an unrealized loss position	92.6		%	95.9		%

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 losses 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.


	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturity Distribution at September 30, 2024
Due in one year or less	$	1,809	$	1,800	$	15,139	$	15,096
Due after one through five years	12,818		12,578		121,204		116,480
Due after five through ten years	162,996		151,369		165,418		151,803
Due after ten years	1,023,957		915,703		1,149,054		963,930
	1,201,580		1,081,450		1,450,815		1,247,309
U.S. Government-sponsored mortgage-backed securities	541,099		472,046		658,079		575,697

Total investment securities	$	1,742,679	$	1,553,496	$	2,108,894	$	1,823,006


	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturity Distribution at December 31, 2023
Due in one year or less	$	1,390	$	1,382	$	3,041	$	3,043
Due after one through five years	24,899		23,372		118,592		111,723
Due after five through ten years	127,948		120,385		135,805		126,461
Due after ten years	1,151,260		1,027,158		1,217,265		1,018,801
	1,305,497		1,172,297		1,474,703		1,260,028
U.S. Government-sponsored mortgage-backed securities	541,343		454,815		709,794		610,346

Total investment securities	$	1,846,840	$	1,627,112	$	2,184,497	$	1,870,374

Securities with a carrying value of approximately $3.4 billion and $1.8 billion were pledged at September 30, 2024 and December 31, 2023, respectively, to secure certain deposits and securities sold under repurchase agreements, and for other purposes as permitted or required by law. Pledged securities increased from December 31, 2023 as a result of the Corporation pledging additional securities to the Discount Window at the Federal Reserve Bank to be used as an alternative funding source, if needed.

The book value of securities pledged and available under agreements to repurchase amounted to $143.7 million at September 30, 2024 and $181.4 million at December 31, 2023.

Gross gains and losses on the sales of investment securities available for sale for the three and nine months ended September 30, 2024 and 2023 are shown below.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Sales and redemptions of investment securities available for sale:
Gross gains	$	7	$	—	$	7	$	759
Gross losses	(9,121)		(1,650)		(9,172)		(5,372)

Net gains (losses) on sales and redemptions of investment securities available for sale	$	(9,114)	$	(1,650)	$	(9,165)	$	(4,613)

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Amortized Cost Basis of Collateral Dependent Loans (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	$ 66,670		$ 60,666
Allowance on Collateral Dependent Loans	187,828	$ 189,537	204,934	$ 205,782	$ 221,147	$ 223,277
Commercial and industrial loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	15,685		32,029
Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	4		7
Commercial real estate, non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	38,959		17,516
Commercial real estate, owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	10,575		9,452
Residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	1,241		1,439
Home equity
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	206		223
Allowance on Collateral Dependent Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Increase (decrease) in individually evaluated for impairment	6,000
Increase (decrease) allowance for credit loss, recovery	(4,400)
Allowance on Collateral Dependent Loans	7,400		11,769
Allowance on Collateral Dependent Loans \| Commercial and industrial loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Increase (decrease) in individually evaluated for impairment	(16,300)
Increase (decrease) allowance for credit loss, recovery	(9,200)
Allowance on Collateral Dependent Loans	2,312		11,474
Allowance on Collateral Dependent Loans \| Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance on Collateral Dependent Loans	0		0
Allowance on Collateral Dependent Loans \| Commercial real estate, non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Increase (decrease) in individually evaluated for impairment	21,400
Increase (decrease) allowance for credit loss, recovery	4,800
Allowance on Collateral Dependent Loans	4,864		35
Allowance on Collateral Dependent Loans \| Commercial real estate, owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance on Collateral Dependent Loans	0		0
Allowance on Collateral Dependent Loans \| Residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance on Collateral Dependent Loans	198		230
Allowance on Collateral Dependent Loans \| Home equity
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance on Collateral Dependent Loans	26		30
Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	49,534		26,968
Commercial Real Estate \| Commercial and industrial loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	0		0
Commercial Real Estate \| Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	0		0
Commercial Real Estate \| Commercial real estate, non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	38,959		17,516
Commercial Real Estate \| Commercial real estate, owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	10,575		9,452
Commercial Real Estate \| Residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	0		0
Commercial Real Estate \| Home equity
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	0		0
Residential Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	1,451		1,669
Residential Real Estate \| Commercial and industrial loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	0		0
Residential Real Estate \| Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	4		7
Residential Real Estate \| Commercial real estate, non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	0		0
Residential Real Estate \| Commercial real estate, owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	0		0
Residential Real Estate \| Residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	1,241		1,439
Residential Real Estate \| Home equity
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	206		223
Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	15,685		32,029
Other \| Commercial and industrial loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	15,685		32,029
Other \| Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	0		0
Other \| Commercial real estate, non-owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	0		0
Other \| Commercial real estate, owner occupied
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	0		0
Other \| Residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	0		0
Other \| Home equity
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for impairment	$ 0		$ 0

LOANS AND ALLOWANCE FOR CREDIT LOSSES - Payment Status (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	$ 91,955	$ 48,636
Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	78,179	47,367
30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	8,680	1
60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	2,177	1,268
90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	2,919
Commercial and industrial loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	26,372	15,969
Commercial and industrial loans \| Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	24,445	15,863
Commercial and industrial loans \| 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	0	0
Commercial and industrial loans \| 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	1,927	106
Commercial and industrial loans \| 90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	0
Agricultural land, production and other loans to farmers
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	22	34
Agricultural land, production and other loans to farmers \| Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	22	34
Agricultural land, production and other loans to farmers \| 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	0	0
Agricultural land, production and other loans to farmers \| 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	0	0
Agricultural land, production and other loans to farmers \| 90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	0
Construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	22,915	13
Construction \| Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	22,915	13
Construction \| 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	0	0
Construction \| 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	0	0
Construction \| 90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	0
Commercial real estate, non-owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	31,492	17,765
Commercial real estate, non-owner occupied \| Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	21,082	17,765
Commercial real estate, non-owner occupied \| 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	8,680	0
Commercial real estate, non-owner occupied \| 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	0	0
Commercial real estate, non-owner occupied \| 90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	1,730
Commercial real estate, owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	7,523	14,319
Commercial real estate, owner occupied \| Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	7,523	13,157
Commercial real estate, owner occupied \| 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	0	0
Commercial real estate, owner occupied \| 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	0	1,162
Commercial real estate, owner occupied \| 90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	0
Residential
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	3,379	472
Residential \| Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	1,940	472
Residential \| 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	0	0
Residential \| 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	250	0
Residential \| 90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	1,189
Home equity
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	252	63
Home equity \| Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	252	63
Home equity \| 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	0	0
Home equity \| 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	0	0
Home equity \| 90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers	$ 0
Individuals' loans for household and other personal expenditures
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers		1
Individuals' loans for household and other personal expenditures \| Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers		0
Individuals' loans for household and other personal expenditures \| 30-59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers		1
Individuals' loans for household and other personal expenditures \| 60-89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Loan Modifications Made to Borrowers		$ 0