0000712534-21-000077 | 10-K | XBRL Viewer

Loans and Allowance

LOANS AND ALLOWANCE

Loans are stated at the amount of unpaid principal, reduced by deferred income (net of costs). Interest on loans is recognized using the simple interest method on the daily balances of the principal amounts outstanding. Loan origination fees, net of direct loan origination costs, and commitment fees are deferred and amortized as an adjustment to yield over the life of the loan, or over the commitment period, as applicable. The Corporation’s primary lending focus is small business and middle market commercial, commercial real estate and residential real estate, which results in portfolio diversification. The following tables show the composition of the loan portfolio, the allowance for loan losses and credit quality characteristics by collateral classification, excluding loans held for sale. Loans held for sale at December 31, 2020 and 2019, were $4.0 million and $9.0 million, respectively.

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


	December 31, 2020		December 31, 2019

Commercial and industrial loans	$	2,776,699	$	2,109,879
Agricultural land, production and other loans to farmers	281,884		334,172
Real estate loans:
Construction	484,723		787,568
Commercial real estate, non-owner occupied	2,220,949		1,902,692
Commercial real estate, owner occupied	958,501		909,695
Residential	1,234,741		1,143,217
Home equity	508,259		588,984
Individuals' loans for household and other personal expenditures	129,479		135,989
Public finance and other commercial loans	647,939		547,114
Loans	9,243,174		8,459,310
Allowance for loan losses	(130,648)		(80,284)
Net Loans	$	9,112,526	$	8,379,026

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law, providing an approximate $2 trillion stimulus package that includes direct payments to individual taxpayers, economic stimulus to significantly impacted industry sectors, emergency funding for hospitals and providers, small business loans, increased unemployment benefits, and a variety of tax incentives. For small businesses, eligible nonprofits and certain others, the CARES Act established a Paycheck Protection Program (“PPP”), which is administered by the Small Business Administration (“SBA”). On April 24, 2020, the Paycheck Protection Program and Health Care Enhancement Act was enacted. Among other things, this legislation amends the initial CARES Act program by raising the appropriation level for PPP loans from $349 billion to $670 billion. The PPP was further modified on June 5, 2020 with the adoption of the Paycheck Protection Program Flexibility Act ("the Flexibility Act"), which extended the maturity date for PPP loans from two years to five years for loans disbursed on or after the date of enactment of the Flexibility Act. For PPP loans disbursed prior to such enactment, the Flexibility Act permits the borrower and lender to mutually agree to extend the term of the loan to five years. The Bank has actively participated in assisting its customers with applications for resources through the program. PPP loans earn interest at a fixed rate of 1 percent and primarily have a two year term. The Bank anticipates that the majority of these loans will ultimately be forgiven, in whole or in part, by the SBA as, in accordance with the terms of the PPP, the loans are fully guaranteed by the SBA. As of December 31, 2020, the Bank had over 4,400 PPP loans, primarily in the commercial and industrial loan class, totaling $667.1 million, which is net of $12.5 million of deferred processing fee income and costs. The weighted-average deferred processing fee on PPP loans was approximately 3.09 percent and is recognized over the term of the loan. If a loan is forgiven by the SBA or paid off by the borrower prior to maturity, any unamortized portion of the fee will be recognized immediately. During the year ended December 31, 2020, the Corporation recognized interest income on PPP loans of $6.2 million and $16.2 million of PPP loan related deferred processing fee income as a yield adjustment.

The Bank borrowed from the Paycheck Protection Program Liquidity Facility ("PPPL Facility") to supplement liquidity to fund the PPP loans in the second quarter 2020. At December 31, 2020, the Corporation did not have an outstanding balance with the PPPL Facility.

Allowance, Credit Quality and Loan Portfolio

Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit losses on Financial Instruments ("CECL") had an original adoption date of January 1, 2020, which included a day 1 measurement date of January 1, 2020. The CARES Act, passed by Congress on March 27, 2020 in response to the COVID-19 pandemic, created an optional deferral of the CECL adoption date. Pursuant to the CARES Act and the related joint statement of federal banking regulators (which also became effective as of March 27, 2020), and consistent with guidance from the SEC and FASB, the Corporation elected to delay implementation of ASU No. 2016-13, which was set to expire on December 31, 2020. However, the 2021 Consolidated Appropriations Act ("CAA"), signed into law on December 27, 2020, amended the CARES Act by extending the temporary relief from CECL compliance to the earlier of the first day of the fiscal year that begins after the date on which the national emergency concerning COVID-19 terminates, or January 1, 2022. The Corporation elected to delay implementation of CECL following the approval of the CARES Act and, with the enactment of the CAA, the Corporation has elected to further delay adoption of CECL to January 1, 2021. As a result of the Corporation’s election, its 2020 financial statements have been prepared under the existing incurred loss model.

The Corporation maintains an allowance for loan losses to cover probable credit losses identified during its loan review process. Management believes that the allowance for loan losses is adequate to cover probable losses inherent in the loan portfolio at December 31, 2020. The process for determining the adequacy of the allowance for loan losses is critical to the Corporation’s financial results. It requires management to make difficult, subjective and complex judgments to estimate the effect of uncertain matters. The allowance for loan losses considers current factors, including economic conditions and ongoing internal and external examinations, and will increase or decrease as deemed necessary to ensure it remains adequate. In addition, the allowance as a percentage of charge-offs and nonperforming loans will change at different points in time based on credit performance, portfolio mix and collateral values.

The allowance for loan losses is maintained through the provision for loan losses, which is a charge against earnings. The allowance is increased by provision expense and decreased by charge-offs less recoveries. All charge-offs are approved by the Bank's senior credit officers and in accordance with established policies. The Bank charges off a loan when a determination is made that all or a portion of the loan is uncollectible. The amount provided for loan losses in a given period may be greater than or less than net loan losses experienced during the period, and is based on management’s judgment as to the appropriate level of the allowance for loan losses. The determination of the provision amount is based on management’s ongoing review and evaluation of the loan portfolio, including an internally administered loan "watch" list and independent loan reviews. The evaluation takes into consideration identified credit problems, the possibility of losses inherent in the loan portfolio that are not specifically identified and management’s judgment as to the impact of the current environment and economic conditions on the portfolio.

The allowance consists of specific impairment reserves as required by ASC 310-10-35, a component for historical losses in accordance with ASC 450 and the consideration of current environmental factors in accordance with ASC 450. A loan is deemed impaired when, based on current information or events, it is probable that all amounts due of principal and interest according to the contractual terms of the loan agreement will not be collected.

The historical loss allocation for loans not deemed impaired according to ASC 450 is the product of the volume of loans within the non-impaired criticized and non-criticized risk grade classifications, each segmented by call code, and the historical loss factor for each respective classification and call code segment. The historical loss factors are based upon actual loss experience within each risk and call code classification. The historical look back period for non-criticized loans looks to the most recent rolling-four-quarter average and aligns with the look back period for non-impaired criticized loans. Each of the rolling four quarter periods used to obtain the average, include all charge-offs for the previous twelve-month period, therefore the historical look back period includes seven quarters. Criticized loans are grouped based on the risk grade assigned to the loan. Loans with a special mention grade are assigned a loss factor, and loans with a classified grade but not impaired are assigned a separate loss factor. The loss factor computation for this allocation includes a segmented historical loss migration analysis of risk grades to charge-off.

In addition to the specific reserves and historical loss components of the allowance, consideration is given to various environmental factors to ensure that losses inherent in the portfolio are reflected in the allowance for loan losses. Environmental factors that management reviews in the analysis include: national and local economic trends and conditions; trends in growth in the loan portfolio and growth in higher risk areas; levels of, and trends in, delinquencies and non-accruals; experience and depth of lending management and staff; adequacy of, and adherence to, lending policies and procedures including those for underwriting; industry concentrations of credit; and adequacy of risk identification systems and controls through the internal loan review and internal audit processes.

In conformance with ASC 805 and ASC 820, loans purchased after December 31, 2008 are recorded at the acquisition date fair value. Such loans are included in the allowance to the extent a specific impairment is identified that exceeds the fair value adjustment on an impaired loan or the historical loss and environmental factor analysis indicates losses inherent in a purchased portfolio exceeds the fair value adjustment on the portion of the purchased portfolio not deemed impaired.

At December 31, 2020, the allowance for loan losses was $130.6 million, an increase of $50.3 million from the December 31, 2019 balance of $80.3 million. Net charge-offs for the twelve months ended December 31, 2020, were $8.3 million, an increase of $5.2 million from the same period in 2019. The provision for loan losses for the twelve months ended December 31, 2020 was $58.7 million, an increase of $55.9 million from the same period in 2019. The determination of the provision for loan losses in any period is based on management’s continuing review and evaluation of the loan portfolio, and its judgment as to the impact of current economic conditions on the portfolio.

The following tables summarize changes in the allowance for loan losses by loan segment for the twelve months ended December 31, 2020, 2019, and 2018:


	Twelve Months Ended December 31, 2020
	Commercial		Commercial Real Estate		Consumer		Residential		Total
Allowance for loan losses:
Balances, December 31, 2019	$	32,902	$	28,778	$	4,035	$	14,569	$	80,284




Provision for losses	21,930		22,174		5,996		8,573		58,673

Recoveries on loans	819		431		260		666		2,176
Loans charged off	(8,536)		(313)		(643)		(993)		(10,485)
Balances, December 31, 2020	$	47,115	$	51,070	$	9,648	$	22,815	$	130,648


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


	Twelve Months Ended December 31, 2018
	Commercial		Commercial Real Estate		Consumer		Residential		Total
Allowance for loan losses:
Balances, December 31, 2017	$	30,420	$	27,343	$	3,732	$	13,537	$	75,032
Provision for losses	2,097		2,482		679		1,969		7,227
Recoveries on loans	2,456		2,525		302		993		6,276
Loans charged off	(2,316)		(2,741)		(749)		(2,177)		(7,983)
Balances, December 31, 2018	$	32,657	$	29,609	$	3,964	$	14,322	$	80,552

The tables below show the Corporation’s allowance for loan losses and loan portfolio by loan segment for the years indicated.


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

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


	December 31, 2019
	Commercial		Commercial Real Estate		Consumer		Residential		Total
Allowance balances:
Individually evaluated for impairment	$	—	$	231	$	—	$	458	$	689
Collectively evaluated for impairment	32,902		28,547		4,035		14,111		79,595

Total allowance for loan losses	$	32,902	$	28,778	$	4,035	$	14,569	$	80,284
Loan balances:
Individually evaluated for impairment	$	457	$	8,728	$	4	$	2,520	$	11,709
Collectively evaluated for impairment	2,748,681		3,821,660		135,985		1,727,966		8,434,292
Loans acquired with deteriorated credit quality	1,716		9,878		—		1,715		13,309
Loans	$	2,750,854	$	3,840,266	$	135,989	$	1,732,201	$	8,459,310

Loans individually evaluated for impairment are comprised of commercial and consumer loans deemed impaired in accordance with ASC 310-10. This includes loans acquired with subsequent deterioration of credit quality totaling $1.3 million with $557,000 of related allowance for loan losses at December 31, 2020 and $2.8 million with $124,000 related allowance for loan losses at December 31, 2019.

The risk characteristics of the Corporation’s material 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

These 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. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans.

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, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment on loans secured by 1-4 family residences can 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.

Loans are reclassified to a non-accruing status when, in management’s judgment, the collateral value and financial condition of the borrower do not justify accruing interest. When the interest accrual is discontinued, all unpaid accrued interest is reversed against earnings when considered uncollectible. Payments subsequently received on non-accrual loans are applied to principal. A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable, typically after a minimum of six consecutive months of performance. Payments received on impaired accruing or delinquent loans are applied to interest income as accrued.

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


	December 31, 2020		December 31, 2019
Commercial and industrial loans	$	2,329	$	1,255
Agricultural land, production and other loans to farmers	1,012		1,180
Real estate loans:
Construction	123		977
Commercial real estate, non-owner occupied	46,316		3,351
Commercial real estate, owner occupied	3,040		2,659
Residential	6,517		5,062
Home equity	2,095		1,421
Individuals' loans for household and other personal expenditures	39		44


Total	$	61,471	$	15,949

Impaired loans include loans deemed impaired according to the guidance set forth in ASC 310-10. Commercial loans under $500,000 and

consumer loans, with the exception of troubled debt restructures, are not individually evaluated for impairment.

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

The following tables show the composition of the Corporation’s impaired loans, related allowance and interest income recognized while impaired by loan class for the years indicated:


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

Real estate loans:

Commercial real estate, non-owner occupied	4,958		4,694		—		4,850		145
Commercial real estate, owner occupied	2,125		1,310		—		1,429		—
Residential	957		816		—		840		3

Individuals' loans for household and other personal expenditures	2		2		—		3		—


Total	$	9,101	$	7,813	$	—	$	8,113	$	148
Impaired loans with related allowance:
Commercial and industrial loans	$	268	$	268	$	223	$	267	$	—
Agricultural land, production and other loans to farmers	640		562		3		589		—
Real estate loans:

Commercial real estate, non-owner occupied	44,016		43,715		11,686		44,119		—
Commercial real estate, owner occupied	2,061		1,323		557		1,447		—
Residential	2,041		2,014		352		2,108		70
Home equity	487		461		80		473		14



Total	$	49,513	$	48,343	$	12,901	$	49,003	$	84
Total Impaired Loans	$	58,614	$	56,156	$	12,901	$	57,116	$	232


	December 31, 2019
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance:
Commercial and industrial loans	$	320	$	320	$	—	$	320	$	—
Agricultural land, production and other loans to farmers	752		381		—		542		—
Real estate loans:
Construction	1,206		970		—		1,229		—
Commercial real estate, non-owner occupied	6,202		5,299				5,399		156
Commercial real estate, owner occupied	1,382		306		—		357		—
Residential	93		76		—		77		3




Total	$	9,955	$	7,352	$	—	$	7,924	$	159
Impaired loans with related allowance:

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


Commercial real estate, owner occupied	2,060		1,324		124		1,324		—
Residential	2,070		2,044		383		2,083		63
Home equity	417		400		75		409		12
Individuals' loans for household and other personal expenditures	4		4		—		4		—


Total	$	5,139	$	4,357	$	689	$	4,405	$	75
Total Impaired Loans	$	15,094	$	11,709	$	689	$	12,329	$	234


	December 31, 2018
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance:
Commercial and industrial loans	$	828	$	806	$	—	$	833	$	—
Agricultural land, production and other loans to farmers	679		679		—		1,213		—
Real estate loans:
Construction	1,352		614		—		835		—
Commercial real estate, non-owner occupied	7,795		6,891		—		10,239		—
Commercial real estate, owner occupied	3,381		2,103				2,202		165
Residential	118		100		—		101		3
Home equity	49		48		—		48		—




Public finance and other commercial loans	353		353		—		353		—
Total	$	14,555	$	11,594	$	—	$	15,824	$	168
Impaired loans with related allowance:


Real estate loans:
Construction	$	7,978	$	7,977	$	1,429	$	7,977	$	—

Commercial real estate, owner occupied	171		171		6		171
Residential	1,958		1,907		362		1,915		57
Home equity	376		358		74		365		10
Individuals' loans for household and other personal expenditures	18		18		1		20		1



Total	$	10,501	$	10,431	$	1,872	$	10,448	$	68
Total Impaired Loans	$	25,056	$	22,025	$	1,872	$	26,272	$	236

Impaired loans in the above tables do not include loans accounted for under ASC 310-30, or any other loan, unless deemed impaired in

accordance with ASC 310-10.

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

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

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

•Special Mention - Loans which have a potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special Mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

•Substandard - Loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected.

•Doubtful - Loans will have all the weaknesses inherent in those classified Substandard with the added characteristics that the weakness make collection or liquidation in full, on the basis of currently known facts, conditions, and values, highly questionable and improbable.

•Loss – Loans are considered uncollectible and of such little value that their continuation as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future.

The following tables summarize the credit quality of the Corporation’s loan portfolio, by loan class for the years indicated. Consumer non-performing loans include accruing consumer loans 90-days or more delinquent and consumer non-accrual loans. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified date. Loans that evidenced deterioration of credit quality since origination and the probability, at acquisition, that all contractually required payments would not be collected are included in the applicable categories below.


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

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


	December 31, 2019
	Commercial Pass		Commercial Special Mention		Commercial Substandard		Commercial Doubtful		Commercial Loss		Consumer Performing		Consumer Non Performing		Total
Commercial and industrial loans	$	1,956,985	$	81,179	$	71,715	$	—	—		$	—	$	—	$	2,109,879
Agricultural land, production and other loans to farmers	291,790		11,008		29,393		—		—		1,981		—		334,172
Real estate loans:
Construction	749,249		1,613		1,634		—		—		35,072		—		787,568
Commercial real estate, non-owner occupied	1,814,187		38,366		50,139		—		—		—		—		1,902,692
Commercial real estate, owner occupied	866,947		14,028		28,720		—		—		—		—		909,695
Residential	196,710		877		8,075		—		—		932,743		4,812		1,143,217
Home equity	24,211		257		682		—		—		562,507		1,327		588,984
Individuals' loans for household and other personal expenditures	—		—		—		—		—		135,944		45		135,989

Public finance and other commercial loans	547,114		—		—		—		—		—		—		547,114
Loans	$	6,447,193	$	147,328	$	190,358	$	—	$	—	$	1,668,247	$	6,184	$	8,459,310

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


	December 31, 2020
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Total		Past due 90+ days and still accruing
Commercial and industrial loans	$	2,761,473	$	5,866	$	6,571	$	2,789	$	15,226	$	2,776,699	$	594
Agricultural land, production and other loans to farmers	280,615		146		226		897		1,269		281,884		—
Real estate loans:
Construction	484,706		—		17		—		17		484,723		—
Commercial real estate, non-owner occupied	2,184,681		2,525		2,109		31,634		36,268		2,220,949		—
Commercial real estate, owner occupied	951,561		4,854		180		1,906		6,940		958,501		—
Residential	1,226,779		3,269		1,429		3,264		7,962		1,234,741		133
Home equity	503,596		2,644		559		1,460		4,663		508,259		19
Individuals' loans for household and other personal expenditures	129,049		334		96		—		430		129,479		—

Public finance and other commercial loans	647,939		—		—		—		—		647,939		—
Loans	$	9,170,399	$	19,638	$	11,187	$	41,950	$	72,775	$	9,243,174	$	746


	December 31, 2019
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Total		Past due 90+ days and still accruing
Commercial and industrial loans	$	2,105,757	$	3,086	$	154	$	882	$	4,122	$	2,109,879	$	4
Agricultural land, production and other loans to farmers	333,012		46		64		1,050		1,160		334,172		—
Real estate loans:
Construction	785,936		1,632		—		—		1,632		787,568		—
Commercial real estate, non-owner occupied	1,899,190		1,348		544		1,610		3,502		1,902,692		—
Commercial real estate, owner occupied	906,881		976		208		1,630		2,814		909,695		—
Residential	1,134,650		4,976		1,279		2,312		8,567		1,143,217		22
Home equity	584,506		3,083		611		784		4,478		588,984		42
Individuals' loans for household and other personal expenditures	135,445		439		105		—		544		135,989		1

Public finance and other commercial loans	547,114		—		—		—		—		547,114		—
Loans	$	8,432,491	$	15,586	$	2,965	$	8,268	$	26,819	$	8,459,310	$	69

On occasion, borrowers experience declines in income and cash flow. As a result, these borrowers seek to reduce contractual cash outlays including debt payments. Concurrently, in an effort to preserve and protect its earning assets, specifically troubled loans, the Corporation works to maintain its relationship with certain customers who are experiencing financial difficulty by contractually modifying the borrower's debt agreement with the Corporation. In certain loan restructuring situations, the Corporation may grant a concession to a debtor experiencing financial difficulty, resulting in a trouble debt restructuring. A concession is deemed to be granted when, as a result of the restructuring, the Corporation does not expect to collect all original amounts due, including interest accrued at the original contract rate. If the payment of principal at original maturity is primarily dependent on the value of collateral, the current value of the collateral is considered in determining whether the principal will be paid.

The following tables summarize troubled debt restructures in the Corporation's loan portfolio that occurred during the periods ended December 31, 2020 and 2019:


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

Commercial real estate, owner occupied	107		107		1
Residential	2,730		2,780		38
Home equity	332		332		3
Individuals' loans for household and other personal expenditures	19		19		2

Total	$	4,413	$	4,473	49


	December 31, 2019
	Pre-Modification Recorded Balance		Post-Modification Recorded Balance		Number of Loans


Real estate loans:



Residential	$	636	$	629	11
Home equity	56		61		2


Total	$	692	$	690	13

The following tables summarize the recorded investment of troubled debt restructures as of December 31, 2020 and 2019, by modification type, that occurred during the years indicated:


	December 31, 2020
	Term Modification		Rate Modification		Combination		Total Modification
Commercial and industrial loans	$	585	$	—	$	—	$	585

Real estate loans:
Construction	—		—		120		120

Commercial real estate, owner occupied	103		—		—		103
Residential	2,253		159		220		2,632
Home equity	236		93		—		329
Individuals' loans for household and other personal expenditures	16		—		—		16

Total	$	3,193	$	252	$	340	$	3,785


	December 31, 2019
	Term Modification		Rate Modification		Combination		Total Modification


Real estate loans:



Residential	$	95	$	87	$	432	$	614
Home equity	—		—		61		61


Total	$	95	$	87	$	493	$	675

Loans secured by 1- 4 family residential real estate made up 70 percent of the post-modification balances of the troubled debt restructured loans that occurred during the twelve months ending December 31, 2020. The same classification made up 100 percent of the post-modification balance of the troubled debt restructured loans for the twelve months ending December 31, 2019.

The following tables summarize troubled debt restructures that occurred during the twelve months ended December 31, 2020 and 2019, that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this schedule, a loan is considered in default if it is 30-days or more past due.


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

Real estate loans:


Residential	8	610
Home equity	1	93

Total	11	$	1,288


	Twelve Months Ended December 31, 2019
	Number of Loans	Recorded Balance


Real estate loans:


Residential	1	$	37

Total	1	$	37

For potential consumer loan restructures, impairment evaluation occurs prior to modification. Any subsequent impairment is addressed through the charge-off process or through a specific reserve. Consumer troubled debt restructures are generally included in the general historical allowance for loan loss at the post modification balance. Consumer non-accrual and delinquent troubled debt restructures are also considered in the calculation of the non-accrual and delinquency trend environmental allowance allocation. Consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $2.8 million and $1.0 million at December 31, 2020 and 2019, respectively.

Commercial troubled debt restructured loans risk graded special mention, substandard, doubtful and loss are individually evaluated for impairment under ASC 310. Any resulting specific reserves are included in the allowance for loan losses. Commercial 30 - 89 day delinquent troubled debt restructures are included in the calculation of the delinquency trend environmental allowance allocation. With the exception of the acquired loans excluded from the allowance for loan losses, all commercial non-impaired loans, including non-accrual and 90-days or more delinquents, are included in the ASC 450 loss estimate.

Accounting for Certain Loans Acquired in a Purchase

12 Months Ended

Dec. 31, 2020

Accounting for Certain Loans Acquired in a Purchase

ACCOUNTING FOR CERTAIN LOANS ACQUIRED IN A PURCHASE

Purchase Credit Impaired Loans are included in NOTE 5. LOANS AND ALLOWANCE of these Notes to Consolidated Financial Statements. As described in NOTE 5, purchased loans are recorded at the acquisition date fair value, which could result in a fair value discount or premium. Purchased loans with evidence of credit deterioration since origination and for which it is probable at the date of acquisition that the acquirer will not collect all contractually required principal and interest payments are accounted for under ASC 310-30, Loans Acquired with Deteriorated Credit Quality. The difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference. The accretable portion of the fair value discount or premium is the difference between the expected cash flows and the net present value of expected cash flows, with such difference accreted into earnings over the term of the loans.

The outstanding balance of purchased credit impaired loans as of December 31, 2020 was $15.6 million which had a carrying amount of $9.6 million and $557,000 of related allowance for loan losses. As of December 31, 2019, the outstanding balance of purchased credit impaired loans was $25.3 million with a carrying amount of $16.1 million with $124,000 required allowance for loan losses. As customer cash flow expectations improve, nonaccretable yield can be reclassified to accretable yield. The accretable amount, or income expected to be collected, and reclassifications from nonaccretable, are identified in the table below.


	Twelve Months Ended December 31, 2020		Twelve Months Ended December 31, 2019		Twelve Months Ended December 31, 2018
Beginning balance	$	2,132	$	2,143	$	2,890
Additions	—		576		—
Accretion	(2,852)		(2,387)		(4,118)
Reclassification from nonaccretable	1,947		1,965		3,387
Disposals	(7)		(165)		(16)
Ending balance	$	1,220	$	2,132	$	2,143

No loans were acquired during the period ending December 31, 2020. The following table presents loans acquired during the period ending December 31, 2019, for which it was probable at acquisition that all contractually required payments would not be collected.


	2019
	MBT
Contractually required payments receivable at acquisition date	$	6,840
Nonaccretable difference	2,733
Expected cash flows at acquisition date	4,107
Accretable difference	576
Basis in loans at acquisition date	$	3,531

Premises and Equipment

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Premises and Equipment

PREMISES AND EQUIPMENT

The following table summarizes the Corporation's premises and equipment as of December 31, 2020 and 2019:


	2020		2019
Cost at December 31:
Land	$	25,619	$	25,227
Buildings and Leasehold Improvements	163,588		162,391
Equipment	127,341		124,327
Total Cost	316,548		311,945
Accumulated Depreciation and Amortization	(205,486)		(198,890)
Net	$	111,062	$	113,055

The MBT acquisition on September 1, 2019 resulted in additions to premises and equipment of $21,664,000. Details regarding the acquisition are discussed in NOTE 2. ACQUISITIONS of these Notes to Consolidated Financial Statements.

The Corporation is committed under various non-cancelable lease contracts for certain subsidiary office facilities and equipment. Details regarding the lease contracts are discussed in NOTE 10. LEASES of these Notes to Consolidated Financial Statements.

Goodwill

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

GOODWILL

Goodwill is recorded on the acquisition date of an entity. During the one-year measurement period, the Corporation may record subsequent adjustments to goodwill for provisional amounts recorded at the acquisition date. The MBT acquisition on September, 1, 2019 resulted in

$98,563,000 of goodwill, which includes a measurement period adjustment of $719,000 recorded in the fourth quarter of 2019. Details regarding the MBT acquisition are discussed in NOTE 2. ACQUISITIONS of these Notes to Consolidated Financial Statements. There have been no changes in goodwill since December 31, 2019, resulting in a goodwill balance of $543,918,000 as of December 31, 2020.

The Corporation reviews goodwill annually for impairment, or more frequently if events or circumstances indicate the carrying value might be impaired. The impairment analysis compares the estimated fair value of the Corporation (the reporting unit) with the Corporation's net book value. On January 1, 2020, the Corporation adopted ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill. Subsequent to the October 1, 2019 impairment test and adoption of ASU 2017-04, the Corporation experienced a decline in market capitalization as a result of a decline in the share price of the Corporation's common stock. At March 31, 2020, June 30, 2020 and September 30, 2020, the Corporation assessed the economic impact and market conditions from the COVID-19 pandemic. Additionally, the Corporation assessed the general uncertainty as to the full extent of the COVID-19 pandemic and its effect on economic recovery and concluded goodwill was not impaired in either period.

As of October 1, 2020, the Corporation performed its annual goodwill impairment test which included various valuation considerations including comparable peer data, precedent transaction comparables, discounted cash flow analysis, overall financial performance, share price of the Corporation's common stock and other factors. The testing for both periods resulted in a conclusion that it was not more likely than not that the fair value of the Corporation had declined below its carrying value and no impairment loss was recorded in 2020. In December 2020, the Corporation's stock price increased to a value higher than its carrying value and has remained at these levels. The Corporation considers this further support the decline in stock value was considered temporary and not an indication goodwill was impaired. Goodwill assessments are highly sensitive to economic projections and the related assumptions used by management. In the event of a prolonged economic downturn or further deterioration in the economic outlook, continued assessments of our goodwill balance will likely be required in future periods.

The Corporation also conducted its annual goodwill impairment testing in 2019. In the valuation, the fair value exceeded the Corporation's carrying value; therefore, it was concluded goodwill was not impaired.


	2019
Balance, January 1	$	445,355
Goodwill acquired	97,844

Measurement period adjustment	$	719
Balance, December 31	$	543,918

Other Intangibles

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Other Intangibles

OTHER INTANGIBLES

Core deposit intangibles and other intangibles are recorded on the acquisition date of an entity. During the one-year measurement period, the Corporation may record subsequent adjustments to these intangibles for provisional amounts recorded at the acquisition date. The MBT acquisition on September 1, 2019 resulted in a core deposit intangible of $16,527,000. Details regarding the MBT acquisition are discussed in NOTE 2. ACQUISITION of these Notes to Consolidated Financial Statements.

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


	2020		2019
Gross carrying amount	$	102,396	$	85,869
Core deposit intangible acquired	—		16,527


Accumulated amortization	(73,421)		(67,434)

Total core deposit and other intangibles	$	28,975	$	34,962

The core deposit intangibles and other intangibles are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of two to ten years. Amortization expense for the years ended December 31, 2020, 2019 and 2018, was $5,987,000, $5,994,000 and $6,719,000, respectively.

Estimated future amortization expense is summarized as follows:


	Amortization Expense
2021	$	5,429
2022	5,027
2023	4,827
2024	4,241
2025	3,526
After 2025	5,925
	$	28,975

Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

LEASES

The Corporation adopted ASU No. 2016-02 - Leases (Topic 842), as amended, as of January 1, 2019 for certain retail branches, office space, land and equipment. The Corporation elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Corporation to carry forward the historical lease classification. Operating leases are included in the operating lease right-of use ("ROU") asset, which is included in other assets and the lease liability is included in other liabilities in our balance sheets. The Corporation does not have any finance leases.

ROU assets represent the Corporation's right to use an underlying asset for the lease term and lease liabilities represent the Corporation's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Corporation uses its incremental borrowing rate at commencement date in determining the present value of lease payments when the rate implicit in a lease is not known. The Corporation's incremental borrowing rate is based on the FHLB amortizing advance rate, adjusted for the lease term and other factors. Lease terms may include options to extend or terminate the lease. The exercise of such lease renewal options is at the Corporation's sole discretion and is not included in the present value of lease obligations unless it is reasonably certain that the option will be exercised. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of the Corporation's lease agreements include rental payments adjusted periodically for inflation. The Corporation's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Supplemental balance sheet information related to leases is presented in the table below as of December 31, 2020 and 2019:


	December 31, 2020			December 31, 2019
Operating lease assets	$	18,247		$	20,747
Total lease assets	$	18,247		$	20,747

Operating lease liabilities	$	20,058		$	21,421
Total Lease liabilities	$	20,058		$	21,421

Weighted average remaining lease term (years)
Operating leases	8.0			8.9
Weighted average discount rate
Operating leases	3.3		%	3.4		%

The table below presents the components of lease expense for the period indicated.


	Twelve Months Ended December 31, 2020		Twelve Months Ended December 31, 2019
Lease Cost:
Operating lease cost	$	3,724	$	3,617
Short-term lease cost	247		204
Variable lease cost	842		948
Sublease income	$	(43)	(13)
Total lease cost	$	4,770	4,756

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


Maturity of lease liabilities	Operating Leases
2021	$	3,542
2022	3,394
2023	2,992
2024	2,921
2025	2,687
2026 and after	7,716
Total lease payments	$	23,252
Less: Present value discount	3,194
Present value of lease liabilities	$	20,058


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

Deposits

12 Months Ended

Dec. 31, 2020

Deposits

DEPOSITS

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


	December 31, 2020		December 31, 2019
Demand deposits	$	6,821,152	$	5,250,568
Savings deposits	3,661,713		2,896,177
Certificates and other time deposits of $100,000 or more	346,194		736,843
Other certificates and time deposits	459,168		741,759
Brokered deposits	73,383		214,609
Total deposits	$	11,361,610	$	9,839,956

At December 31, 2020 and 2019, deposits exceeding the FDIC's Standard Maximum Deposit Insurance Amount of $250,000 were $6.4 billion and $5.1 billion, respectively. The Corporation experienced increases from December 31, 2019 in demand and savings accounts of $1.6 billion and $765.5 million, respectively. A portion of the increase is due to PPP loans that have remained on deposit, in addition to consumer Economic Impact Payments from the IRS that have also remained on deposit. Offsetting these increases were decreases in certificates of deposit and brokered deposits of $673.2 million and $141.2 million, respectively, from December 31, 2019. The low interest rate environment has resulted in customers migrating funds from maturing time deposit products into non-maturity products due to similar rates offered for both products.

At December 31, 2020, the contractual maturities of time deposits are summarized as follows:


	Certificates and Other Time Deposits
2021	$	651,861
2022	167,919
2023	35,367
2024	13,474
2025	9,287
After 2025	837
	$	878,745

Transfers Accounted for as Secured Borrowings

12 Months Ended

Dec. 31, 2020

Transfers Accounted for as Secured Borrowings

TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS

The collateral pledged for all repurchase agreements that are accounted for as secured borrowings as of December 31, 2020 and 2019 were:


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


	December 31, 2019
	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	$	178,732	$	—	$	7,672	$	1,542	$	187,946

Borrowings

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Borrowings

BORROWINGS

The following table summarizes the Corporation's borrowings as of December 31, 2020 and 2019:


	December 31, 2020		December 31, 2019
Federal funds purchased	$	—	$	55,000
Securities sold under repurchase agreements	177,102		187,946
Federal Home Loan Bank advances	389,430		351,072
Subordinated debentures and term loans	118,380		138,685
Total Borrowings	$	684,912	$	732,703

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 2020 and 2019 totaled $197.9 million and $191.6 million, respectively, and the average of such agreements totaled $180.7 million and $136.3 million during 2020 and 2019, respectively.

Contractual maturities of borrowings as of December 31, 2020, 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
2021	$	—	$	177,102	$	55,097	$	—
2022	—		—		75,097		—
2023	—		—		115,097		—
2024	—		—		10,097		—
2025	—		—		25,097		—
After 2025	—		—		108,945		122,012
ASC 805 fair value adjustments at acquisition	—		—		—		(3,632)
	$	—	$	177,102	$	389,430	$	118,380

The terms of a security agreement with the FHLB require the Corporation to pledge, as collateral for advances, qualifying first mortgage loans, investment securities and multi-family loans in an amount equal to at least 145 percent of these advances depending on the type of collateral pledged. At December 31, 2020, the outstanding FHLB advances had interest rates from 0.35 to 2.62 percent and are subject to restrictions or penalties in the event of prepayment. The total available remaining borrowing capacity from the FHLB at December 31, 2020, was $723.3 million. As of December 31, 2020, the Corporation had $125.0 million of putable advances with the FHLB.

Subordinated Debentures and Term Loans. As of December 31, 2020 and 2019, subordinated debentures and term loans totaled $118.4 million and $138.7 million, respectively.

•First Merchants Capital Trust II ("FMC Trust II"). The subordinated debenture was entered into on July 2, 2007 for $56.7 million. On August 10, 2015, the Corporation completed the cancellation of $5 million of subordinated debentures at a gain of $1.3 million. The outstanding balance as of December 31, 2019 was $51.7 million. Interest was fixed at 6.495 percent for the period from the date of issuance through September 15, 2012; interest is now an annual floating rate equal to the three-month LIBOR plus 1.56 percent, reset quarterly. Interest is payable in March, June, September and December of each year. The interest rate at December 31, 2020 and 2019 was 1.78 percent and 3.45 percent, respectively. The Corporation could not redeem the debenture prior to September 15, 2012, and redemption is subject to the prior approval of the Board of Governors of the Federal Reserve System, as required by law or regulation. On March 16, 2020, the Corporation partially redeemed $10.0 million of its subordinated debentures, with an interest rate of 3.45 percent, all of which were held by FMC Trust II. As a result, FMC Trust II used the proceeds from such partial redemption to concurrently redeem a like amount of its capital securities at an aggregate principal redemption price of $10.0 million. Debentures issued by the Corporation in the principal amount of $41.7 million remain outstanding at December 31, 2020 with a maturity date of September 15, 2037. The Corporation holds all of the remaining outstanding common securities of FMC Trust II.

•Ameriana Capital Trust I. On December 31, 2015 the Corporation acquired Ameriana Capital Trust I in conjunction with its acquisition of Ameriana Bancorp, Inc. The subordinated debentures of Ameriana Capital Trust I were entered into in March 2006 for $10.3 million and have a maturity of March 2036. Ameriana could not redeem the debenture prior to March 2011, and redemption is subject to the prior approval of the Board of Governors of the Federal Reserve System, as required by law or regulation. The interest rate is equal to the three-month LIBOR plus 1.50 percent, reset quarterly. Interest is payable in March, June, September and December of each year. The interest rate at December 31, 2020 and 2019 was 1.72 percent and 3.39 percent, respectively. The Corporation holds all of the outstanding common securities of Ameriana Capital Trust I.

•Grabill Capital Trust I ("Grabill Trust"). On July 14, 2017 the Corporation acquired Grabill Trust in conjunction with its acquisition of Independent Alliance Banks, Inc. The subordinated debentures of Grabill Trust were entered into in June 2004 for $10.3 million and had a maturity of July 23, 2034. The interest rate was equal to the three-month LIBOR plus 2.60 percent, reset quarterly. Interest was payable in January, April, July and October of each year. IAB could not redeem the debenture prior to July 2009, and redemption was subject to the prior approval of the Board of Governors of the Federal Reserve System, as required by law or regulation. On April 23, 2020, the Corporation redeemed $10.0 million of its subordinated debentures, with an interest rate of 4.41 percent, all of which were held by Grabill Trust. As a result, Grabill Trust used the proceeds from such complete redemption to concurrently redeem all of its capital securities at an aggregate principal redemption price of $10.0 million. Subsequently, Grabill Trust was dissolved. The outstanding balance and interest rate at December 31, 2019 were $10.3 million and 4.53 percent, respectively.

•On November 1, 2013, the Corporation completed the private issuance and sale to four institutional investors of an aggregate of $70 million of debt comprised of (a) 5.00 percent Fixed-to-Floating Rate Senior Notes due 2028 in the aggregate principal amount of $5 million (the "Senior Debt") and (b) 6.75 percent Fixed-to-Floating Rate Subordinated Notes due 2028 in the aggregate principal amount of $65 million (the "Subordinated Debt"). The interest rate on the Senior Debt and Subordinated Debt remains fixed for the first ten (10) years and will become floating thereafter. Once the rates convert to floating on October 30, 2023, the Senior Debt will have an annual floating rate equal to the three-month LIBOR plus 2.345 percent and the Subordinated Debt will have an annual floating rate equal to the three-month LIBOR plus 4.095 percent. The Corporation has an option to redeem the Subordinated Debt in whole or in part at a redemption price equal to 100 percent of the principal amount of the redeemed Subordinated Notes, plus accrued and unpaid interest to the date of the redemption. The option of redemption is subject to the approval of the Federal Reserve Board. The Corporation has an option to redeem the Senior Debt in whole or in part at a redemption price equal to 100 percent of the principal amount of the redeemed Senior Notes, plus accrued and unpaid interest to the date of the redemption; provided, however, that no Subordinated Notes (as defined in the Issuing and Paying Agency Agreement) may remain outstanding subsequent to any early redemption of Senior Notes. The Subordinated Debt and the Senior Debt options to redeem begin with the interest payment date on October 30, 2023, or on any scheduled interest payment date thereafter. The Senior Debt agreement contains certain customary representations and warranties and financial and negative covenants. As of December 31, 2020 and 2019 the Corporation was in compliance with these covenants.

Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Risk Management Objective of Using Derivatives

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

Cash Flow Hedges of Interest Rate Risk

The Corporation’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Corporation primarily uses interest rate swaps and interest rate caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the payment of fixed amounts to a counterparty in exchange for the Corporation receiving variable payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. As of December 31, 2020, the Corporation had four interest rate swaps with a notional amount of $60.0 million. As of December 31, 2019, the Corporation had four interest rate swaps with a notional amount of $46.0 million. A $10.0 million interest rate swap used to hedge the variable cash outflows associated with a Federal Home Loan Bank advance matured in the third quarter of 2020.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During 2020, $26.0 million of the interest rate swaps were used to hedge the variable cash outflows (LIBOR-based) associated with existing trust preferred securities when the outflows converted from a fixed rate to variable rate in September 2012. In addition, $10.0 million of interest rate swaps were used to hedge the variable cash outflows (LIBOR-based) associated with one Federal Home Loan Bank advances. Finally, the remaining $24.0 million of interest rate swaps were used to hedge the variable cash outflows (Ameribor-based) associated with a brokered deposit originated in December 2020. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the years ended December 31, 2020 and 2019, the Corporation did not recognize any ineffectiveness.

Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Corporation’s variable-rate liabilities. During the next twelve months, the Corporation expects to reclassify $1.0 million from accumulated other comprehensive income to interest expense.

Non-designated Hedges

The Corporation does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and result from a service the Corporation provides to certain customers. The Corporation executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Corporation executes with a third party, such that the Corporation minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. The notional amount of customer-facing swaps was approximately $985.0 million and $692.3 million as of December 31, 2020 and December 31, 2019, respectively. This amount is offset with third party counterparties, as described above.

Fair Values of Derivative Instruments on the Balance Sheet

The table below presents the fair value of the Corporation’s derivative financial instruments as well as their classification on the Balance Sheet as of December 31, 2020 and December 31, 2019.

Asset Derivatives

Liability Derivatives

December 31, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Balance Sheet Location

Fair
Value

Balance Sheet Location

Fair
Value

Balance Sheet Location

Fair
Value

Balance Sheet Location

Fair
Value

Derivatives designated as hedging instruments:

Interest rate contracts

Other Assets

—

Other Assets

—

Other Liabilities

2,018

Other Liabilities

1,444

Derivatives not designated as hedging instruments:

Interest rate contracts

Other Assets

74,335

Other Assets

27,855

Other Liabilities

74,335

Other Liabilities

27,855

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


Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) For the Year Ended December 31,
Derivatives in Cash Flow Hedging Relationships	2020		2019
Interest rate products	$	(1,480)	$	(1,072)

Effect of Derivative Instruments on the Income Statement

The tables below present the effect of the Corporation’s derivative financial instruments on the Income Statement for the years ended December 31, 2020, 2019 and 2018.


Derivatives Designated as Hedging Instruments under FASB ASC 815-10	Location of Loss Reclassified from Accumulated Other Comprehensive Income (Effective Portion)	Amount of Loss Reclassified from Other Comprehensive Income into Income (Effective Portion)
		2020		2019		2018
Interest rate contracts	Interest expense	$	(906)	$	(334)	$	(470)

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

Credit-Risk-Related Contingent Features

The Corporation has agreements with certain of its derivative counterparties that contain a provision where if the Corporation fails to maintain its status as a well/adequately capitalized institution, then the Corporation could be required to terminate or fully collateralize all outstanding derivative contracts. Additionally, the Corporation has agreements with certain of its derivative counterparties that contain a provision where if the Corporation defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Corporation could also be declared in default on its derivative obligations. As of December 31, 2020, the termination value of derivatives in a net liability position related to these agreements was $77.0 million. As of December 31, 2020, the Corporation has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $75.8 million. If the Corporation had breached any of these provisions at December 31, 2020, it could have been required to settle its obligations under the agreements at their termination value.

Fair Values of Financial Instruments

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Fair Values of Financial Instruments

FAIR VALUES OF FINANCIAL INSTRUMENTS

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

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

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

RECURRING MEASUREMENTS

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

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

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

Investment Securities

Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. The Corporation

currently has no securities classified within Level 1 of the hierarchy. Where significant observable inputs, other than Level 1 quoted prices, are

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

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

Interest Rate Derivative Agreements

See information regarding the Corporation’s interest rate derivative products in NOTE 14. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES of these Notes to Consolidated Financial Statements.

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the ASC 820-10 fair value hierarchy in which the fair value measurements fall at December 31, 2020 and 2019.


			Fair Value Measurements Using:
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
December 31, 2020	Fair Value		(Level 1)		(Level 2)		(Level 3)
Available for sale securities:
U.S. Government-sponsored agency securities	$	2,430	$	—	$	2,430	$	—
State and municipal	1,257,885		—		1,255,441		2,444
U.S. Government-sponsored mortgage-backed securities	654,669		—		654,665		4

Corporate obligations	4,135		—		4,104		31

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

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


			Fair Value Measurements Using:
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
December 31, 2019	Fair Value		(Level 1)		(Level 2)		(Level 3)
Available for sale securities:
U.S. Government-sponsored agency securities	$	38,875	$	—	$	38,875	$	—
State and municipal	899,796		—		896,938		2,858
U.S. Government-sponsored mortgage-backed securities	851,323		—		851,319		4

Corporate obligations	31		—		—		31

Interest rate swap asset	27,855		—		27,855		—

Interest rate swap liability	29,299		—		29,299		—

LEVEL 3 RECONCILIATION

The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable Level 3 inputs for year ended December 31, 2020 and 2019.


	Available for Sale Securities
	For The Year Ended
	December 31, 2020		December 31, 2019
Beginning Balance	$	2,893	$	3,328


Included in other comprehensive income	16		80


Principal payments	(430)		(515)
Ending balance	$	2,479	$	2,893

There were no gains or losses included in earnings that were attributable to the changes in unrealized gains or losses related to assets or liabilities held at December 31, 2020 or 2019.

TRANSFERS BETWEEN LEVELS

There were no transfers in or out of Level 3 during 2020 or 2019.

NONRECURRING MEASUREMENTS

Following is a description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy for year ended December 31, 2020 and 2019.


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


			Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets	Significant Other Observable Inputs	Significant Unobservable Inputs
December 31, 2019	Fair Value		(Level 1)	(Level 2)	(Level 3)
Impaired Loans (collateral dependent)	$	5,653	—	—	$	5,653
Other real estate owned	$	194	—	—	$	194

Impaired Loans (collateral dependent)

Loans for which it is probable that the Corporation will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment include estimating fair value of the collateral for collateral dependent loans. If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for loan losses to increase, such increase is reported as a component of the provision for loan losses. Loan losses are charged against the allowance when management believes the uncollectability of the loan is confirmed. During 2019 and 2020, certain impaired loans were partially charged off or re-evaluated. Impaired loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method.

Other Real Estate Owned

The fair value for impaired loans and other real estate owned is measured based on the value of the collateral securing those loans or real estate and is determined using several methods. The fair value of real estate is generally determined based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a discounted cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions.

UNOBSERVABLE (LEVEL 3) INPUTS

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at December 31, 2020 and 2019.

December 31, 2020

Fair Value

Valuation Technique

Unobservable Inputs

Range (Weighted-Average)

State and municipal securities

2,444

Discounted cash flow

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

1 month to 15 years

A- to BBB-

1.5% - 4%

3.88%

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

Discounted cash flow

Risk free rate
plus Premium for illiquidity
Weighted-average coupon

3 month LIBOR

plus 200bps

Impaired loans (collateral dependent)

37,250

Collateral based measurements

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

0% - 10% (6%)

Other real estate owned

544

Appraisals

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

0% - 30% (26%)

December 31, 2019

Fair Value

Valuation Technique

Unobservable Inputs

Range (Weighted-Average)

State and municipal securities

2,858

Discounted cash flow

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

1 month to 15 years

A- to BBB-

2% - 5%

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

Discounted cash flow

Risk free rate
plus Premium for illiquidity
Weighted-average coupon

3 month LIBOR

plus 200bps

Impaired loans (collateral dependent)

5,653

Collateral based measurements

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

0% - 10% (1%)

Other real estate owned

194

Appraisals

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

0% - 37% (37%)

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

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

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

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

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

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

FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table presents estimated fair values of the Corporation's financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2020 and 2019.


	2020
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets at December 31:
Cash and cash equivalents	$	192,896	$	192,896	$	—	$	—
Interest-bearing deposits	392,305		392,305		—		—
Investment securities available for sale	1,919,119		—		1,916,640		2,479
Investment securities held to maturity	1,227,668		—		1,260,815		19,478
Loans held for sale	3,966		—		3,966		—
Loans	9,112,526		—		—		9,191,628
Federal Home Loan Bank stock	28,736		—		28,736		—
Interest rate swap asset	74,335		—		74,335		—
Interest receivable	53,948		—		53,948		—
Liabilities at December 31:
Deposits	$	11,361,610	$	10,482,865	$	878,257	$	—
Borrowings:
Federal funds purchased	—		—		—		—
Securities sold under repurchase agreements	177,102		—		177,097		—
Federal Home Loan Bank advances	389,430		—		399,991		—
Subordinated debentures and term loans	118,380		—		108,439		—
Interest rate swap liability	76,353		—		76,353		—
Interest payable	3,287		—		3,287		—


	2019
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets at December 31:
Cash and cash equivalents	$	177,201	$	177,201	$	—	$	—
Interest-bearing deposits	118,263		118,263		—		—
Investment securities available for sale	1,790,025		—		1,787,132		2,893
Investment securities held to maturity	806,038		—		799,884		27,682
Loans held for sale	9,037		—		9,037		—
Loans	8,379,026		—		—		8,335,340
Federal Home Loan Bank stock	28,736		—		28,736		—
Interest rate swap asset	27,855		—		27,855		—
Interest receivable	48,901		—		48,901		—
Liabilities at December 31:
Deposits	$	9,839,956	$	8,146,745	$	1,675,202	$	—
Borrowings:
Federal funds purchased	55,000		—		55,000		—
Securities sold under repurchase agreements	187,946		—		187,801		—
Federal Home Loan Bank advances	351,072		—		352,581		—
Subordinated debentures and term loans	138,685		—		123,571		—
Interest rate swap liability	29,299		—		29,299		—
Interest payable	6,754		—		6,754		—

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.

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2020

Commitments and Contingent Liabilities

COMMITMENTS AND CONTINGENT LIABILITIES

In the normal course of business there are outstanding commitments and contingent liabilities, such as commitments to extend credit and standby letters of credit, which are not included in the accompanying financial statements. The Corporation's exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments. The Bank uses the same credit policies in making such commitments as they do for instruments that are included in the consolidated balance sheets.

Financial instruments, whose contract amount represents credit risk as of December 31, were as follows:


	2020		2019
Amounts of commitments:
Loan commitments to extend credit	$	3,443,514	$	3,005,064
Standby letters of credit	$	29,555	$	30,200

Commitments to extend credit are agreements to lend to a customer, as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management's credit evaluation. Collateral held varies, but may include accounts receivable, inventory, property and equipment, and income-producing commercial properties.

Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party.

The Corporation and subsidiaries are also subject to claims and lawsuits, which arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position of the Corporation.

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, as of December 31, 2020 and 2019:


	Accumulated Other Comprehensive Income (Loss)
	Unrealized Gains (Losses) on Securities Available for Sale		Unrealized Gains (Losses) on Cash Flow Hedges		Unrealized Gains (Losses) on Defined Benefit Plans		Total
Balance at December 31, 2019	$	38,872	$	(1,141)	$	(9,857)	$	27,874
Other comprehensive income before reclassifications	58,513		(1,169)		(1,767)		55,577
Amounts reclassified from accumulated other comprehensive income	(9,397)		716		66		(8,615)
Period change	49,116		(453)		(1,701)		46,962

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


Balance at December 31, 2018	$	(6,343)	$	(559)	$	(14,520)	$	(21,422)
Other comprehensive income before reclassifications	48,703		(846)		4,579		52,436
Amounts reclassified from accumulated other comprehensive income	(3,488)		264		84		(3,140)
Period change	45,215		(582)		4,663		49,296

Balance at December 31, 2019	$	38,872	$	(1,141)	$	(9,857)	$	27,874

The following table presents the reclassification adjustments out of accumulated other comprehensive income (loss) that were included in net income in the Consolidated Statements of Income for the years ended December 31, 2020, 2019 and 2018:


	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Year Ended December 31,
Details about Accumulated Other Comprehensive Income (Loss) Components	2020		2019		2018		Affected Line Item in the Statements of Income
Unrealized gains (losses) on available for sale securities (1)
Realized securities gains reclassified into income	$	11,895	$	4,415	$	4,269	Other income - net realized gains on sales of available for sale securities
Related income tax expense	(2,498)		(927)		(896)		Income tax expense
	$	9,397	$	3,488	$	3,373

Unrealized gains (losses) on cash flow hedges (2)
Interest rate contracts	$	(906)	$	(334)	$	(470)	Interest expense - subordinated debentures and term loans
Related income tax benefit	190		70		99		Income tax expense
	$	(716)	$	(264)	$	(371)

Unrealized gains (losses) on defined benefit plans
Amortization of net loss and prior service costs	$	(84)	$	(106)	$	20	Other expenses - salaries and employee benefits
Related income tax benefit (expense)	18		22		(4)		Income tax expense
	$	(66)	$	(84)	$	16

Total reclassifications for the period, net of tax	$	8,615	$	3,140	3,018

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

(2) For additional detail related to unrealized gains (losses) on cash flow hedges and related amounts reclassified from accumulated other comprehensive income see NOTE 14. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES.

Regulatory Capital and Dividends

12 Months Ended

Dec. 31, 2020

Banking and Thrift, Interest [Abstract]

Regulatory Capital and Dividends

REGULATORY CAPITAL AND DIVIDENDS

Regulatory Capital

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

leverage ratios as defined in the regulation and as illustrated in the table below, which capital to risk-weighted asset ratios include a 2.5 percent capital conservation buffer. Under Basel III, in order to avoid limitations on capital distributions, including dividends, the Corporation must hold a 2.5 percent capital conservation buffer above the adequately capitalized CET1 to risk-weighted assets ratio (which buffer is reflected in the required ratios below). Under Basel III, the Corporation and Bank elected to opt-out of including accumulated other comprehensive income in regulatory capital. As of December 31, 2020, the Bank met all capital adequacy requirements to be considered well capitalized under the fully phased-in Basel III capital rules. There is no threshold for well capitalized status for bank holding companies.

The Corporation's and Bank's actual and required capital ratios as of December 31, 2020 and December 31, 2019 were as follows:


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


					Prompt Corrective Action Thresholds
	Actual				Basel III Minimum Capital Required				Well Capitalized
December 31, 2019	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total risk-based capital to risk-weighted assets
First Merchants Corporation	$	1,400,617	14.29	%	$	1,028,930	10.50	%	N/A		N/A
First Merchants Bank	1,267,649		12.87		1,033,926		10.50		$	984,691	10.00	%
Tier 1 capital to risk-weighted assets
First Merchants Corporation	$	1,255,333	12.81	%	$	832,943	8.50	%	N/A		N/A
First Merchants Bank	1,187,365		12.06		836,988		8.50		$	787,753	8.00	%
Common equity tier 1 capital to risk-weighted assets
First Merchants Corporation	$	1,188,970	12.13	%	$	685,953	7.00	%	N/A		N/A
First Merchants Bank	1,187,365		12.06		689,284		7.00		$	640,049	6.50	%
Tier 1 capital to average assets
First Merchants Corporation	$	1,255,333	10.54	%	$	476,383	4.00	%	N/A		N/A
First Merchants Bank	1,187,365		9.99		475,564		4.00		$	594,455	5.00	%

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

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

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

risk-weighted assets and the CET1, Tier 1 and Total Risk-Based capital ratios. At December 31, 2020, risk-weighted assets included $667.1 million of PPP loans at a zero risk weight. Additionally, in order to facilitate use of the PPPL Facility, the agencies have clarified that banking organizations, including the Corporation and the Bank, are allowed to neutralize the regulatory effects of PPP covered loans on the risk-based capital ratios, as well as PPP covered loans pledged under the PPPL Facility on the leverage capital ratios. At December 31, 2020, the

Corporation did not have an outstanding balance with the PPPL Facility; therefore there were no adjustments to the leverage ratio for PPP loans.

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

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

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

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

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

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

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

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

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

Dividends

The Corporation's principal source of funds for dividend payments to shareholders is dividends received from the Bank. Banking regulations limit the maximum amount of dividends that a bank may pay without requesting prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the bank’s retained income (as defined under the regulations) for the current year plus those for the previous two years, subject to the capital requirements described above. As of December 31, 2020, the amount available for dividends from the Corporation’s subsidiaries (both banking and non-banking), without prior regulatory approval or notice, was $207,182,000.

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

Stockholders' Equity

On September 1, 2019, the Corporation acquired 100 percent of MBT. Pursuant to the merger agreement, each MBT shareholder received 0.275 shares of the Corporation's common stock for each outstanding share of MBT common stock held. The Corporation issued approximately 6.4 million shares of common stock, which was valued at approximately $229.9 million. Details regarding the MBT acquisition are discussed in NOTE 2. ACQUISITIONS of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

Stock Repurchase Program

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

On January 27, 2021, the Board of Directors of the Corporation approved a stock repurchase program of up to 3,333,000 shares of the Corporation's outstanding common stock; provided, however, that the total aggregate investment in shares repurchased under the program may not exceed $100,000,000. On a share basis, the amount of common stock subject to the repurchase program represents approximately 6 percent of the Corporation's outstanding shares. Details regarding the 2021 stock repurchase program are discussed in NOTE 27. SUBSEQUENT EVENTS of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K.

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

Banking and Thrift, Other Disclosures [Abstract]

Loan Servicing

12 Months Ended

Dec. 31, 2020

Loan Servicing

LOAN SERVICING

Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid balances are as follows for December 31, 2020, 2019 and 2018. The amount of capitalized servicing assets is considered immaterial.


	2020		2019		2018
Mortgage loan portfolios serviced for:
Federal Home Loan Mortgage Corporation	$	514,539	$	354,393	$	351,672
Fannie Mae	69,072		82,922		92,552
Federal Home Loan Bank	51,479		76,815		88,931
Chevy Chase Mortgage Company	134		164		231
Total	$	635,224	$	514,294	$	533,386

Share-Based Compensation

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

SHARE-BASED COMPENSATION

Stock options and RSAs have been issued to directors, officers and other management employees under the Corporation's 2009 Long-term Equity Incentive Plan, the 2019 Long-term Equity Incentive Plan and the Equity Compensation Plan for Non-Employee Directors. The stock options, which have a ten-year life, become 100 percent vested based on time ranging from one year to two years and are fully exercisable when vested. Option exercise prices equal the Corporation's common stock closing price on NASDAQ on the date of grant. The RSAs issued to employees and non-employee directors provide for the issuance of shares of the Corporation's common stock at no cost to the holder and generally vest after three years. The RSAs vest only if the employee is actively employed by the Corporation on the vesting date and, therefore, any unvested shares are forfeited. For non-employee directors, the RSA's 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 retired from the Corporation 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 2009 ESPP and 2019 ESPP provides eligible employees of the Corporation and its subsidiaries an opportunity to purchase shares of common stock of the Corporation through quarterly offerings financed by payroll deductions. The price of the stock to be paid by the employees shall be equal to 85 percent of the average of the closing price of the Corporation’s common stock on each trading day during the offering period. However, in no event shall such purchase price be less than the lesser of an amount equal to 85 percent of the market price of the Corporation’s stock on the offering date or an amount equal to 85 percent of the market value on the date of purchase. Common stock purchases are made quarterly and are paid through advance payroll deductions up to a calendar year maximum of $25,000. The Corporation's 2009 ESPP expired on June 30, 2019.

Compensation expense related to unvested share-based awards is recorded by recognizing the unamortized grant date fair value of these awards over the remaining service periods of those awards, with no change in historical reported fair values and earnings. Awards are valued at fair value in accordance with provisions of share-based compensation guidance and are recognized on a straight-line basis over the service periods of each award. To complete the exercise of vested stock options, RSA’s and ESPP options, the Corporation generally issues new shares from its authorized but unissued share pool. Share-based compensation for the years ended December 31, 2020, 2019, and 2018 was $4,600,000, $4,115,000, and $3,592,000, respectively, and has been recognized as a component of salaries and benefits expense in the accompanying CONSOLIDATED STATEMENTS OF INCOME.

Share-based compensation expense recognized in the CONSOLIDATED STATEMENTS OF INCOME is based on awards ultimately expected to vest and is reduced for estimated forfeitures. Share-based compensation guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. Pre-vesting forfeitures were estimated to be approximately 0.4 percent for the year ended December 31, 2020, based on historical experience.

The following table summarizes the components of the Corporation's share-based compensation awards recorded as an expense and the income tax benefit of such awards. In 2020, the Corporation had RSAs vest primarily at a stock price that was lower than the grant date stock price, which resulted in the recognition of income tax expense at vesting of $394,000. For the years ended 2019 and 2018, RSAs vested at a stock price higher than the grant date stock price resulting in recognition of income tax benefit at vesting of $363,000 and $448,000, respectively.


	Years Ended December 31,
	2020		2019		2018
Stock and ESPP Options
Pre-tax compensation expense	$	96	$	101	$	109
Income tax benefit	(29)		(70)		(97)
Stock and ESPP option expense, net of income taxes	$	67	$	31	$	12
Restricted Stock Awards
Pre-tax compensation expense	$	4,504	$	4,014	$	3,483
Income tax benefit	(552)		(1,206)		(1,179)
Restricted stock awards expense, net of income taxes	$	3,952	$	2,808	$	2,304
Total Share-Based Compensation:
Pre-tax compensation expense	$	4,600	$	4,115	$	3,592
Income tax benefit	(581)		(1,276)		(1,276)
Total share-based compensation expense, net of income taxes	$	4,019	$	2,839	$	2,316

As of December 31, 2020, unrecognized compensation expense related to RSAs was $6,721,000 and is expected to be recognized over weighted-average period of 1.73 years. The Corporation did not have any unrecognized compensation expense related to stock options as of December 31, 2020.

Stock option activity under the Corporation's stock option plans, as of December 31, 2020, and changes during the year ended December 31, 2020, were as follows:


	Number of Shares	Weighted-Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value
Outstanding at January 1, 2020	59,350	$	13.51	—	$	—

Exercised	(13,550)	$	8.48	—	$	—

Outstanding December 31, 2020	45,800	$	15.00	1.94	$	1,026,578
Vested and Expected to Vest at December 31, 2020	45,800	$	15.00	1.94	$	1,026,578
Exercisable at December 31, 2020	45,800	$	15.00	1.94	$	1,026,578

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 2020 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their stock options on December 31, 2020. The amount of aggregate intrinsic value will change based on the fair market value of the Corporation's common stock.

The aggregate intrinsic value of stock options exercised during the years ended December 31, 2020 and 2019 was $261,000 and $495,000, respectively. Cash receipts of stock options exercised during 2020 and 2019 were $115,000 and $144,000, respectively.

The following table summarizes information on unvested RSAs outstanding as of December 31, 2020:


	Number of Shares	Weighted-Average Grant Date Fair Value
Unvested RSAs at January 1, 2020	351,048	$	40.67
Granted	140,577	$	27.25
Forfeited	(5,450)	$	37.81
Vested	(128,292)	$	39.67
Unvested RSAs at December 31, 2020	357,883	$	36.30

The grant date fair value of ESPP options was estimated at the beginning of the October 1, 2020, quarterly offering period of approximately $19,000. The ESPP options vested during the three months ending December 31, 2020, leaving no unrecognized compensation expense related to unvested ESPP options at December 31, 2020.

Pension and Other Post Retirement Benefit Plans

12 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

Pension and Other Post Retirement Benefit Plans

PENSION AND OTHER POST RETIREMENT BENEFIT PLANS

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

The table below sets forth the plans’ funded status and amounts recognized in the consolidated balance sheets at December 31, using measurement dates of December 31, 2020 and 2019.


	2020		2019
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	76,770	$	73,193
Service cost	16		39
Interest cost	2,343		2,975
Actuarial (gain) loss	6,957		4,007
Benefits paid	(5,300)		(5,145)
Net transfer in from MBT acquisition	—		1,701

Benefit obligation at end of year	$	80,786	$	76,770

Change in Plan Assets:
Fair value of plan assets at beginning of year	$	85,121	$	76,736
Actual return on plan assets	7,925		12,972
Employer contributions	766		558
Benefits paid	(5,300)		(5,145)

End of year	88,512		85,121
Funded status at end of year	$	7,726	$	8,351

Assets and Liabilities Recognized in the Balance Sheets:
Deferred tax asset	$	3,970	$	3,278
Assets	$	12,681	$	13,291
Liabilities	$	4,955	$	4,940

As of December 31, 2020, the funded status of the plans decreased $625,000 and the accumulated other comprehensive loss, net of tax, increased $1.7 million from December 31, 2019. The net impact of the primary contributing factors to these changes were the decreased discount rate of 90 basis points from 3.2 percent to 2.3 percent, which increased the liability by $6.8 million. This was offset by a $700,000 reduction in the liability as the mortality projection improvement scale was updated from MP-2019 to MP-2020. The plan's assets earned a return of $7.9 million, which was $3.8 million more than the expected return. Finally, new census data was incorporated into the current year valuation.

The accumulated benefit obligation for all defined benefit plans was $80.8 million and $76.8 million at December 31, 2020 and 2019, respectively.

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


	December 31, 2020		December 31, 2019
Projected benefit obligation	$	4,955	$	4,940
Accumulated benefit obligation	$	4,955	$	4,940
Fair value of plan assets	$	—	$	—

The Corporation recognized expense under these non-qualified plans of $165,000, $192,000 and $161,000 for 2020, 2019 and 2018, respectively.

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


	December 31, 2020		December 31, 2019		December 31, 2018
Service cost	$	16	$	39	$	8
Interest cost	2,343		2,975		2,816
Expected return on plan assets	(4,086)		(4,414)		(4,891)
Amortization of prior service cost	87		87		87
Amortization of net loss	221		404		287

Net periodic pension benefit cost	$	(1,419)	$	(909)	$	(1,693)

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


	December 31, 2020		December 31, 2019		December 31, 2018
Net periodic pension benefit cost	$	(1,419)	$	(909)	$	(1,693)
Net gain (loss)	(3,119)		4,552		(2,189)
Amortization of net loss	221		404		287
Amortization of prior service cost	87		87		87
Total recognized in other comprehensive income (loss)	(2,811)		5,043		(1,815)
Total recognized in net periodic pension benefit cost and other comprehensive income (loss)	$	(1,392)	$	5,952	$	(122)

Significant assumptions include:


	December 31, 2020		December 31, 2019		December 31, 2018
Weighted-average Assumptions Used to Determine Benefit Obligation:
Discount rate	2.30	%	3.20	%	4.30	%
Rate of compensation increase for accruing active participants	n/a		n/a		n/a
Weighted-average Assumptions Used to Determine Cost:
Discount rate	3.20	%	4.30	%	3.60	%
Expected return on plan assets	5.00	%	6.00	%	6.00	%
Rate of compensation increase for accruing active participants	n/a		n/a		n/a

At December 31, 2020 and 2019, the Corporation based its estimate of the expected long-term rate of return on analysis of the historical returns of the plans and current market information available. The plans’ investment strategies are to provide for preservation of capital with an emphasis on long-term growth without undue exposure to risk. The assets of the plans’ are invested in accordance with the plans’ Investment Policy Statement, subject to strict compliance with ERISA and any other applicable statutes.

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

At December 31, 2020, the maturities of the plans’ debt securities ranged from 15 days to 6.69 years, with a weighted average maturity of 3.65 years. At December 31, 2019, the maturities of the plans’ debt securities ranged from 15 days to 7.67 years, with a weighted average maturity of 4.00 years.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as of December 31, 2020. The minimum contribution required in 2021 will likely be zero, but the Corporation may decide to make a discretionary contribution during the year.


2021	$	5,705
2022	5,697
2023	5,601
2024	5,370
2025	5,333
After 2025	23,744
	$	51,450

Plan assets are re-balanced quarterly. At December 31, 2020 and 2019, plan assets by category are as follows:


	December 31, 2020				December 31, 2019
	Actual		Target		Actual		Target
Cash and cash equivalents	2.7	%	3.0	%	3.0	%	3.0	%
Equity securities	53.0		50.0		52.3		50.0
Debt securities	42.3		45.0		42.3		45.0
Alternative investments	2.0		2.0		2.4		2.0
	100.0	%	100.0	%	100.0	%	100.0	%

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

Beginning in 2005, employees who have completed 1000 hours of service and are an active employee on the last day of the year receive an additional retirement contribution after year-end. Employees hired after January 1, 2010 do not participate in the additional retirement contribution. Effective January 1, 2013, the additional retirement contribution was fixed at 2 percent. Full vesting occurs after five years of service. The Corporation’s expense for the Savings Plan, including the additional retirement contribution, was $5.1 million, $4.6 million and $5.1 million for 2020, 2019 and 2018, respectively.

The Corporation also maintains a post retirement benefit plan that provides health insurance benefits for a closed group of participants that came to the Corporation through the 2019 MBT acquisition. To be eligible for the post retirement plan, the participants must (1) have been hired by MBT prior to January 1, 2007, (2) be a full-time employee of the Corporation and employed by MBT prior to the acquisition, and (3) be at least 55 of age with 5 years of full-time service with MBT. The plan allowed retirees to be carried under the Corporation’s health insurance plan, generally from ages 55 to 65. The retirees' premiums are determined based on their retiree class (per historical MBT guidelines) and also determined by the plan type for which the retiree is enrolled. As of December 31, 2020, the obligation payable under the post retirement plan was $3.5 million. Post retirement plan expense totaled $126,000 and $43,000 for 2020 and 2019, respectively.

Pension Plan Assets

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

Where quoted market prices are available in an active market, plan assets are classified within Level 1 of the valuation hierarchy. Level 1 plan assets total $85.0 million and $80.7 million as of December 31, 2020 and 2019, respectively, and include cash and cash equivalents, common stocks, mutual funds and corporate bonds and notes. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of plan assets with similar characteristics or discounted cash flows. Level 2 plan assets total $3.5 million and $4.4 million as of December 31, 2020 and 2019, respectively, and include governmental agencies, taxable municipal bonds and notes, and certificates of deposit. In certain cases where Level 1 or Level 2 inputs are not available, plan assets are classified within Level 3 of the hierarchy. There are no assets classified within Level 3 of the hierarchy at December 31, 2020 and 2019.


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


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


			Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
December 31, 2019	Fair Value		(Level 1)		(Level 2)		(Level 3)
Cash & Cash Equivalents	$	2,578	$	2,578	$	—	$	—
Corporate Bonds and Notes	17,629		17,629		—		—
Government Agency and Municipal Bonds and Notes	3,660		—		3,660		—
Certificates of Deposit	772		—		772		—
Party-in-Interest Investments
Common Stock	2,516		2,516		—		—


Mutual Funds
Taxable Bond	13,938		13,938		—		—
Large Cap Equity	21,958		21,958		—		—
Mid Cap Equity	10,407		10,407		—		—
Small Cap Equity	5,753		5,753		—		—
International Equity	3,898		3,898		—		—
Specialty Alternative Equity	2,012		2,012		—		—
	$	85,121	$	80,689	$	4,432	$	—

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=118257860&loc=d3e4179-114921

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section S99
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
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+ Details

Income Tax

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Tax

INCOME TAX

The reconciliation between income tax expense expected at the U.S. federal statutory tax rate and the reported income tax expense is summarized in the following table for years ended December 31, 2020, 2019 and 2018:


	2020			2019			2018
Reconciliation of Federal Statutory to Actual Tax Expense:
Federal Statutory Income Tax at 21%	$	35,695		$	40,695		$	39,509
Tax-exempt Interest Income	(13,273)			(10,124)			(8,347)

Stock Compensation	338			(459)			(622)
Earnings on Life Insurance	(1,079)			(953)			(868)
Tax Credits	(425)			(263)			(615)
CARES Act - NOL carryback rate differential	(1,178)			—			—
State Tax	1,122			600			(1,219)
Other	175			(171)			1,161
Income Tax Expense	$	21,375		$	29,325		$	28,999

Effective Tax Rate	12.6		%	15.1		%	15.4		%

Income tax expense consists of the following components for the years ended December 31, 2020, 2019, 2018:


	2020		2019		2018
Income Tax Expense for the Year Ended December 31:
Currently Payable:
Federal	$	28,463	$	23,938	$	23,633
State	2,647		422		1,842
Deferred:
Federal	(8,508)		4,726		6,723

State	(1,227)		239		(3,199)
Income Tax Expense	$	21,375	$	29,325	$	28,999

Significant components of the net deferred tax assets and liabilities resulting from temporary differences were as follows at December 31, 2020 and 2019:


	2020		2019
Deferred Tax Asset at December 31:
Assets:
Differences in Accounting for Loan Losses	$	31,850	$	19,717
Differences in Accounting for Loan Fees	4,328		442

Deferred Compensation	4,038		4,436

Federal & State Income Tax Loss Carryforward and Credits	2,089		6,205

Other	3,185		3,499
Total Assets	45,490		34,299
Liabilities:
Differences in Depreciation Methods	6,028		5,240
Differences in Accounting for Loans and Securities	2,840		1,192
Difference in Accounting for Pensions and Other Employee Benefits	1,258		1,556
State Income Tax	1,059		778
Net Unrealized Gain on Securities Available for Sale	23,389		10,333
Gain on FDIC Modified Whole Bank Transaction	359		413
Other	6,209		6,506
Total Liabilities	41,142		26,018
Net Deferred Tax Asset	$	4,348	$	8,281

As of December 31, 2020, the Corporation has approximately $19.3 million of state NOL carryforwards available to offset future state taxable income, which will expire beginning in 2022. These NOL carryforwards along with normal timing differences between book and tax result in total state deferred tax assets of $5.0 million. Management believes it is more likely than not that the benefit of these state NOL carryforwards and other state deferred tax assets will be fully realized.

The Corporation has additional paid-in capital that is considered restricted resulting from the acquisitions of CFS and Ameriana of approximately $13.4 million and $11.9 million, respectively. CFS and Ameriana qualified as banks under provisions of the Internal Revenue Code which permitted them to deduct from taxable income an allowance for bad debts which differed from the provision for losses charged to income. No provision for income taxes had been provided. If in the future this portion of additional paid-in capital is distributed, or the Corporation no longer qualifies as a bank for income tax purposes, income taxes may be imposed at the then applicable tax rates. The unrecorded deferred tax liability at December 31, 2020, would have been approximately $5.3 million.

The Corporation or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Corporation is generally no longer subject to U.S. federal, state and local income tax examinations by tax authorities for tax years before 2017.

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

Quarterly Financial Information Disclosure [Abstract]

Net Income Per Share

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Net Income Per Share

NET INCOME PER SHARE

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

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


	2020					2019					2018
			Weighted-Average Shares					Weighted-Average Shares					Weighted-Average Shares
Basic net income per share:

Net income available to common stockholders	$	148,600	54,058,471	$	2.75	$	164,460	51,412,133	$	3.20	$	159,139	49,262,015	$	3.23
Effect of dilutive stock options and restricted stock awards			161,913					149,105					208,908
Diluted net income per share:
Net income available to common stockholders	$	148,600	54,220,384	$	2.74	$	164,460	51,561,238	$	3.19	$	159,139	49,470,923	$	3.22

As of December 31, 2020, 2019 and 2018, there were no stock options with an option price greater than the average market price of the common shares.

Quarterly Results of Operations (Unaudited)

12 Months Ended

Dec. 31, 2020

Quarterly Results of Operations (Unaudited)

QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The following table sets forth certain quarterly results for the years ended December 31, 2020 and 2019:


	2020								2019
	First		Second		Third		Fourth		First		Second		Third		Fourth
Interest income	$	119,807	$	109,252	$	106,225	$	113,224	$	108,813	$	112,639	$	118,132	$	125,821
Interest expense	25,930		16,234		13,304		10,913		23,947		27,361		29,200		28,237
Net interest income	93,877		93,018		92,921		102,311		84,866		85,278		88,932		97,584
Provision for loan losses	19,752		21,895		12,544		4,482		1,200		500		600		500
Net interest income after provision for loan losses	74,125		71,123		80,377		97,829		83,666		84,778		88,332		97,084
Non-interest income	29,799		26,481		26,163		27,483		18,713		21,614		22,116		24,245
Non-interest expense	66,171		59,989		64,709		72,536		56,621		57,587		67,354		65,201
Income before income tax expense	37,753		37,615		41,831		52,776		45,758		48,805		43,094		56,128
Income tax expense	3,490		4,623		5,621		7,641		6,941		7,749		6,337		8,298
Net income available to common stockholders	$	34,263	$	32,992	$	36,210	$	45,135	$	38,817	$	41,056	$	36,757	$	47,830

Basic EPS	$	0.63	$	0.62	$	0.67	$	0.83	$	0.79	$	0.83	$	0.71	$	0.87
Diluted EPS	$	0.62	$	0.62	$	0.67	$	0.83	$	0.78	$	0.83	$	0.71	$	0.87
Average Shares Outstanding:
Basic	54,732,073		53,762,913		53,843,508		53,899,501		49,369,024		49,432,167		51,433,227		55,348,176
Diluted	54,917,760		53,942,567		53,970,598		54,049,574		49,540,844		49,549,887		51,569,557		55,519,953

Condensed Financial Information (parent company only)

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information (parent company only)

CONDENSED FINANCIAL INFORMATION (parent company only)

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

Condensed Balance Sheets


	December 31, 2020		December 31, 2019
Assets
Cash	$	59,848	$	127,723
Investment in subsidiaries	1,930,852		1,791,070

Premises and equipment	195		153
Interest receivable	2		6
Goodwill	448		448
Cash surrender value of life insurance	861		837

Other assets	12,211		16,803
Total assets	$	2,004,417	$	1,937,040
Liabilities
Subordinated debentures and term loans	$	118,380	$	138,685
Interest payable	860		977
Other liabilities	9,532		10,941
Total liabilities	128,772		150,603
Stockholders' equity	1,875,645		1,786,437
Total liabilities and stockholders' equity	$	2,004,417	$	1,937,040

Condensed Statements of Income and Comprehensive Income


	December 31, 2020		December 31, 2019		December 31, 2018
Income
Dividends from subsidiaries	$	70,100	$	125,775	$	100,954




Other income	(62)		172		572
Total income	70,038		125,947		101,526
Expenses
Interest expense	6,777		8,309		8,233
Salaries and employee benefits	3,426		3,540		3,729
Net occupancy and equipment expenses	745		802		851
Other outside services	731		1,889		489
Professional services	218		303		270
Other expenses	1,266		1,587		442
Total expenses	13,163		16,430		14,014
Income before income tax benefit and equity in undistributed income of subsidiaries	56,875		109,517		87,512
Income tax benefit	2,260		3,575		3,298
Income before equity in undistributed income of subsidiaries	59,135		113,092		90,810
Equity in undistributed income of subsidiaries	89,465		51,368		68,329
Net income available to common stockholders	$	148,600	$	164,460	$	159,139

Net income	$	148,600	$	164,460	$	159,139
Other comprehensive income (loss)	46,962		49,296		(17,888)
Comprehensive income	$	195,562	$	213,756	$	141,251

Condensed Statements of Cash Flows


	December 31, 2020		December 31, 2019		December 31, 2018
Cash Flow From Operating Activities:
Net income	$	148,600	$	164,460	$	159,139
Adjustments to Reconcile Net Income to Net Cash:
Share-based compensation	1,502		1,339		1,256
Distributions in excess of (equity in undistributed) income of subsidiaries	(89,465)		(51,368)		(68,329)



Net Change in:
Other assets	4,038		(8,944)		584
Other liabilities	(1,521)		4,611		274
Investment in subsidiaries - operating activities	235		(268)		841
Net cash provided by operating activities	63,389		109,830		93,765
Cash Flow From Investing Activities:


Net cash received in acquisition	—		78		—

Other	—		—		2,189
Net cash provided by investing activities	—		78		2,189
Cash Flow From Financing Activities:
Cash dividends	(56,542)		(51,276)		(41,660)

Repayment of borrowings	(20,310)		—		—



Stock issued under employee benefit plans	639		702		707
Stock issued under dividend reinvestment and stock purchase plan	1,726		1,531		1,211
Stock options exercised	115		144		1,598
Restricted shares withheld for taxes	(980)		(1,680)		(1,902)
Repurchases of common stock	(55,912)		(19,041)		—
Net cash used by financing activities	(131,264)		(69,620)		(40,046)
Net change in cash	(67,875)		40,288		55,908
Cash, beginning of the year	127,723		87,435		31,527
Cash, end of year	$	59,848	$	127,723	$	87,435

General Litigation	12 Months Ended
General Litigation	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
General Litigation	GENERAL LITIGATION The Corporation is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flow of the Corporation.

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS On January 27, 2021, the Board of Directors of the Corporation approved a stock repurchase program of up to 3,333,000 shares of the Corporation's outstanding common stock; provided, however, that the total aggregate investment in shares repurchased under the program may not exceed $100,000,000. On a share basis, the amount of common stock subject to the repurchase program represents approximately 6 percent of the Corporation's outstanding shares. The stock repurchases may, at the discretion of management, be made from time to time, through solicited or unsolicited transactions in the open market, in privately negotiated transactions or pursuant to a Rule 10b5-1 plan all as effected in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Corporation is not obligated to purchase any shares under the program, and the program may be discontinued at any time. The actual timing, number and share price of shares purchased under the repurchase program will be determined by the Corporation at its discretion and will depend upon such factors as the market price of the stock, general market and economic conditions and applicable legal requirements.

Nature of Operations and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2020
Accounting Policies [Abstract]
Financial Statement Preparation	FINANCIAL STATEMENT PREPARATION The accounting and reporting policies of the Corporation and the Bank, conform to accounting principles generally accepted in the United States of America and reporting practices followed by the banking industry. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses and fair value of financial instruments. The uncertainties related to COVID-19 could cause significant changes to these estimates compared to what was known at the time these financial statements were prepared.
Consolidation	CONSOLIDATION The consolidation of the Corporation's financial statements include the accounts of the Corporation and all its subsidiaries, after elimination of all material intercompany transactions.
Business Combinations	BUSINESS COMBINATIONS Business combinations are accounted for under the acquisition method of accounting. Under the acquisition method, assets and liabilities of the business acquired are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired recorded as goodwill. Results of operations of the acquired business are included in the income statement from the date of acquisition.
Cash and Cash Equivalents	CASH AND CASH EQUIVALENTS Cash on hand, cash items in process of collection, cash held at various banks and federal funds sold are included in cash and cash equivalents and have a maturity of less than three months. The Corporation maintains deposits with other financial institutions in amounts that exceed federal deposit insurance coverage. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes there is not significant credit risk on cash and cash equivalents.
Investment Securities	INVESTMENT SECURITIES Held to maturity securities are carried at amortized cost when the Corporation has the positive intent and ability to hold them until maturity. Available for sale securities are recorded at fair value on a recurring basis with the unrealized gains and losses, net of applicable income taxes, recorded in other comprehensive income. Realized gains and losses are recorded in earnings and the prior fair value adjustments are reclassified within stockholders' equity. Gains and losses on sales of securities are determined on the specific-identification method. Amortization of premiums and accretion of discounts are amortized to their earliest call date and are recorded as interest income from securities. Available for sale and held to maturity securities are evaluated for OTTI at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. In determining OTTI, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Corporation has the intent to sell the debt security or more likely than not, will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. When OTTI occurs, the amount of OTTI recognized in the income statement depends on whether the Corporation intends to sell the security or it is more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis, less any recognized credit loss. If the intent is to sell, or it is more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis, less any recognized credit loss, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis, less any recognized credit loss, and its fair value at the balance sheet date. If the intent is not to sell the security and it is not more likely than not that the Corporation will be required to sell the security before the recovery of its amortized cost basis less any recognized credit loss, the OTTI has been separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable income taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. For held to maturity securities, the amount of an OTTI recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security.
Loans Held for Sale	LOANS HELD FOR SALE Loans originated and with an intent to sell are classified as held for sale and are carried at the principal amount outstanding. The carrying amount approximates fair value due to the short duration between origination and the date of sale.
Loans	LOANS The Corporation’s loan portfolio is carried at the principal amount outstanding, net of unearned income and principal charge-offs. Loan origination fees, net of direct loan origination costs, and commitment fees are deferred and amortized as an adjustment to yield over the life of the loan, or over the commitment period, as applicable. Interest income is accrued on the principal balances of loans. The accrual of interest is discontinued on a loan when, in management’s opinion, the borrower may be unable to meet payments as they become due. When the interest accrual is discontinued, all unpaid accrued interest is reversed against earnings when considered uncollectible. Interest income accrued in the prior year, if any, is charged to the allowance for loan losses. Interest income is subsequently recognized only to the extent cash payments are received and the loan is returned to accruing status. Certain non-accrual, substantially delinquent and renegotiated loans classified as troubled debt restructures may be considered to be impaired in accordance with ASC 310, Receivables. Under ASC 310-10, a loan is impaired when, based on current information or events, it is probable all amounts due (principal and interest) according to the contractual terms of the loan agreement are uncollectible. Renegotiated consumer loans classified as troubled debt restructures are considered to be impaired. In applying the provisions of ASC 310-10, the Corporation considers all other investments in one-to-four family residential loans and consumer installment loans to be homogeneous and therefore excluded from separate identification for evaluation of impairment. Impaired loans are carried at the fair value of collateral if the loan is collateral dependent, or the present value of estimated future cash flows using the loan’s existing rate. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for loan losses to increase, such increase is reported as a component of the provision for loan losses. Loan losses are charged against the allowance when management believes the uncollectability of the loan is confirmed. The valuation would be considered Level 3, consisting of appraisals of underlying collateral and discounted cash flow analysis. On March 22, 2020, a statement was issued by the Bank's banking regulators and titled the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” (the "Interagency Statement") that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of COVID-19. Additionally, Section 4013 of the CARES Act further provides that a qualified loan modification is exempt by law from classification as a troubled debt restructure as defined by GAAP, from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak under the National Emergencies Act (50 U.S.C. 1601 et seq.) terminates. The Interagency Statement was subsequently revised on April 7, 2020 to clarify the interaction of the original guidance with Section 4013 of the CARES Act, as well as setting forth the banking regulators’ views on consumer protection considerations. In accordance with such guidance, the Bank has offered short-term modifications made in response to COVID-19 to borrowers who were current and otherwise not past due. These included short-term, 180 days or less, modifications in the form of payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. On December 27, 2020, a $900 billion COVID-19 relief package, as passed by the U.S. Congress, was signed into law as part of the 2021 Consolidated Appropriations Act (“CAA”) that provides federal government funding through the end of its 2021 fiscal year. In addition to delivering direct stimulus payments to certain individuals, an increase in unemployment insurance benefits, an extension of the eviction moratorium, relief to the healthcare industry, and additional aid to various other businesses, the COVID-19-related provisions of the CAA provide for (i) an additional $284 billion in funding for the Paycheck Protection Program (“PPP”), through March 31, 2021, (ii) an extension of the temporary delay for implementation of the CECL accounting standard, and (iii) further suspension of the troubled debt restructure assessment and reporting requirements for financial institutions under GAAP until the earlier of January 1, 2022, or 60 days after the termination of the national emergency. Details of the Corporation's modifications are included in the "LOAN QUALITY" section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 7 of this Annual Report on Form 10-K. Loan commitments and letters-of-credit generally have short-term, variable-rate features and contain clauses which limit the exposure to changes in customer credit quality. Accordingly, their carrying values, which are immaterial at the respective balance sheet dates, are reasonable estimates of fair value.
Purchased Loans	PURCHASED LOANS Loans acquired in a business combination with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be purchased credit impaired. Evidence of credit quality deterioration as of purchase dates may include information such as past-due and nonaccrual status, borrower credit risk grade and recent loan to value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30). These loans are initially measured at fair value based upon expected cash flows without anticipation of prepayments and includes estimated future credit losses expected to be incurred over the life of the loans. As a result, related discounts are recognized subsequently through accretion based on the expected cash flows of the acquired loans. For purposes of applying ASC 310-30, loans acquired in business combinations are individually evaluated for the initial fair value measurement. Accordingly, allowances for credit losses related to these loans are not carried over at the acquisition date. The difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable portion of the fair value discount or premium. The accretable portion of the fair value discount or premium is the difference between the expected cash flows and the net present value of expected cash flows, with such difference accreted into income over the term of the loans. Acquired loans not accounted for under ASC 310-30 are accounted for under ASC 310-20, which allows the fair value adjustment to be accreted into income over the remaining life of the loans.
Allowance for Loan Losses	ALLOWANCE FOR LOAN LOSSES The Corporation's allowance for loan losses is maintained to absorb losses inherent in the loan portfolio and is based on ongoing, quarterly assessments of the probable losses inherent in the loan portfolio. The allowance is increased by the provision for loan losses, which is charged against current operating results. Loan losses are charged against the allowance when management believes the uncollectability of a loan is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Corporation’s strategy for credit risk management includes credit policies and underwriting criteria for all loans, as well as an overall credit limit for each customer significantly below legal lending limits. The strategy also emphasizes diversification on regional geographic and industry levels, regular credit quality reviews and management reviews of large credit exposures and loans experiencing deterioration of credit quality. The Corporation’s methodology for assessing the appropriateness of the allowance consists of three key elements – the determination of the appropriate reserves for impaired loans accounted for under ASC 310-10, probable losses estimated from historical loss rates, and probable losses resulting from economic, environmental, qualitative or other deterioration above and beyond what is reflected in the first two components of the allowance. Where appropriate, reserves are allocated to individual loans based on management’s estimate of the borrower’s ability to repay the loan given the availability of collateral, other sources of cash flow and legal options available to the Corporation. Loans individually evaluated for impairment are those deemed impaired in accordance with ASC 310-10, including commercial relationships greater than $500,000 that exhibit well defined credit weaknesses. Any allowances for impaired loans are measured based on the fair value of the underlying collateral, if collateral dependent, or the present value of expected future cash flows discounted at the loan’s effective interest rate. The Corporation evaluates the collectability of principal when assessing the need for a loss accrual. Historical loss rates are applied to other commercial loans not subject to specific reserve allocations. The historical allocation for commercial loans graded pass are established by loan segments using loss rates based on the Corporation’s migration analysis. This migration analysis shows the loss rates for each segment of loans based on the loan grades at the beginning of the twelve month period. This loss rate is then applied to the current portfolio of loans in each respective loan segment. Homogenous loans, such as consumer installment and residential mortgage loans, are not individually risk graded. Reserves are established for each segment of loans using loss rates based on charge-offs for the same period as the migration analysis used for commercial loans. In addition to the specific reserves and historical loss components of the allowance, consideration is given to various environmental factors to help ensure that losses inherent in the portfolio are reflected in the allowance for loan losses. Factors which management considers in the analysis include the effects of the national and local economies, trends in loan growth and charge-off rates, changes in mix, concentration of loans in specific industries, asset quality trends (delinquencies, charge-offs and non-accrual loans), risk management and loan administration, changes in the internal lending policies and credit standards, examination results from bank regulatory agencies and the Corporation’s internal loan review. Effective January 1, 2021, the Corporation adopted ASU 2016-13, Financial Instruments - Measurement of Current Expected Credit Losses on Financial Instruments ("CECL"), which will modify the accounting for the allowance for loan losses from an incurred loss model to an expected loss model, as discussed more fully below under the heading "NEW ACCOUNTING PRONOUNCEMENTS AND SEC RELEASES NOT YET ADOPTED" of this NOTE 1.
Pension	PENSION Pension benefits are provided to the Corporation’s employees. Its accounting policies related to pensions and other post retirement benefits reflect the guidance in ASC 715, Compensation – Retirement Benefits. The Corporation does not consolidate the assets and liabilities associated with the pension plan. Instead, the Corporation recognizes the funded status of the plan in the consolidated balance sheets. The measurement of the funded status and the annual pension expense involves actuarial and economic assumptions. Various statistical and other factors, which attempt to anticipate future events, are used in calculating the expense and liabilities related to the plans. Key factors include assumptions on the expected rates of return on plan assets, discount rates, expected rates of salary increases and health care costs and trends. The Corporation considers market conditions, including changes in investment returns and interest rates in making these assumptions. The primary assumptions used in determining the Corporation’s pension and post retirement benefit obligations and related expenses are presented in NOTE 21. PENSION AND OTHER POST RETIREMENT BENEFIT PLANS of these Notes to Consolidated Financial Statements.
Premises and Equipment	PREMISES AND EQUIPMENT Premises and equipment is carried at cost net of accumulated depreciation. Depreciation is computed using the straight-line and declining balance methods based on the estimated useful lives of the assets ranging from three to forty years. Maintenance and repairs are expensed as incurred, while major additions and improvements, which extend the useful life, are capitalized. Gains and losses on dispositions are included in current operations.
Leases	LEASES The Corporation leases certain land and premises from third parties and all are classified as operating leases. Effective January 1, 2019, operating leases are included in Other Assets and Other Liabilities on the Corporation's Consolidated Balance Sheets and lease expense for lease payments is recognized on a straight-line basis over the lease term. Right of Use ("ROU") assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the term. An ROU asset represents the right to use the underlying asset for the lease term and also includes any direct costs and payments made prior to lease commencement and excludes lease incentives. When an implicit rate is not available, an incremental borrowing rate based on the information available at commencement date is used in determining the present value of the lease payments. A lease term may include an option to extend or terminate the lease when it is reasonably certain the option will be exercised. Short-term leases of twelve months or less are excluded from accounting guidance; as a result, the lease payments are recognized on a straight-line basis over the lease term and the leases are not reflected on the Corporation's Consolidated Balance Sheets. Renewal and termination options are considered when determining short-term leases. Leases are accounted for at the individual level.
Federal Home Loan Bank Stock ("FHLB")	FEDERAL HOME LOAN BANK STOCK ("FHLB") FHLB stock is a required investment for institutions that are members of the FHLB. The Bank is a member of the FHLB of Indianapolis. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income.
Intangible Assets	INTANGIBLE ASSETS Intangible assets that are subject to amortization, including core deposit intangibles, are being amortized on both the straight-line and accelerated basis over two to ten years. Intangible assets are periodically evaluated as to the recoverability of their carrying value.
Goodwill	GOODWILL Goodwill is maintained by applying the provisions of ASC 350, Intangibles – Goodwill and Other. For purchase acquisitions, the Corporation is required to record the assets acquired, including identified intangible assets, and the liabilities assumed at their fair value, which in many instances involves estimates based on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analysis or other valuation techniques that may include estimates of attrition, inflation, asset growth rates or other relevant factors. In addition, the determination of the useful lives for which an intangible asset will be amortized is subjective. Under ASC 350, the Corporation is required to evaluate goodwill for impairment on an annual basis, as well as on an interim basis, if events or changes indicate that the asset may be impaired, indicating that the carrying value may not be recoverable. The Corporation completed its most recent annual goodwill impairment test as of October 1, 2020 and concluded, based on current events and circumstances goodwill is not impaired. Details of the Corporation's goodwill impairment test are included in NOTE 8. GOODWILL of these Notes to Consolidated Financial Statements.
Bank Owned Life Insurance ("BOLI")	BANK OWNED LIFE INSURANCE ("BOLI")BOLI has been purchased on certain employees and directors of the Corporation to offset a portion of the employee benefit costs. The Corporation records the life insurance at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or amounts due that are probable at settlement. Changes in cash surrender values and death benefits received in excess of cash surrender values are reported in non-interest income. A corporate policy is in place with defined thresholds that limit the amount of credit, interest rate and liquidity risk inherent in a BOLI portfolio. The Corporation actively monitors the overall portfolio performance along with the credit quality of the insurance carriers and the credit quality and yield of the underlying investments.
Other Real Estate Owned ("OREO")	OTHER REAL ESTATE OWNED ("OREO")OREO consists of assets acquired through, or in lieu of, loan foreclosure and are held for sale. They are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation are included in other real estate owned and foreclosure expenses.
Derivative Instruments	DERIVATIVE INSTRUMENTS Derivative instruments, which are recorded as assets or liabilities in the consolidated balance sheets, are carried at fair value of the derivatives and reflects the estimated amounts that would have been received to terminate these contracts at the reporting date based upon pricing or valuation models applied to current market information. As part of the asset/liability management program, the Corporation will utilize, from time to time, interest rate floors, caps or swaps to reduce its sensitivity to interest rate fluctuations. Changes in the fair values of derivatives are reported in the consolidated statements of operations or AOCI depending on the use of the derivative and whether the instrument qualifies for hedge accounting. The key criterion for hedge accounting is that the hedged relationship must be highly effective in achieving offsetting changes in those cash flows that are attributable to the hedged risk, both at inception of the hedge and on an ongoing basis. Derivatives that qualify for the hedge accounting treatment are designated as either: (1) a hedge of the fair value of the recognized asset or liability, or of an unrecognized firm commitment (a fair value hedge); or (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (a cash flow hedge). To date, the Corporation has only entered into a cash flow hedge. For cash flow hedges, changes in the fair values of the derivative instruments are reported in AOCI to the extent the hedge is effective. The gains and losses on derivative instruments that are reported in AOCI are reflected in the consolidated statements of income in the periods in which the results of operations are impacted by the variability of the cash flows of the hedged item. Generally, net interest income is increased or decreased by amounts receivable or payable with respect to the derivatives, which qualify for hedge accounting. At inception of the hedge, the Corporation establishes the method it uses for assessing the effectiveness of the hedging derivative and the measurement approach for determining the ineffective aspect of the hedge. The ineffective portion of the hedge, if any, is recognized in the consolidated statements of income. The Corporation excludes the time value expiration of the hedge when measuring ineffectiveness. The Corporation offers interest rate derivative products (e.g. interest rate swaps) to certain of its high-quality commercial borrowers. This product allows customers to enter into an agreement with the Corporation to swap their variable rate loan to a fixed rate. These derivative products are designed to reduce, eliminate or modify the risk of changes in the borrower’s interest rate or market price risk. The extension of credit incurred through the execution of these derivative products is subject to the same approvals and rigorous underwriting standards as the related traditional credit product. The Corporation limits its risk exposure to these products by entering into a mirror-image, offsetting swap agreement with a separate, well-capitalized and rated counterparty previously approved by the Credit and Asset Liability Committee. By using these interest rate swap arrangements, the Corporation is also better insulated from the interest rate risk associated with underwriting fixed-rate loans. These derivative contracts are not designated against specific assets or liabilities under ASC 815, Derivatives and Hedging, and, therefore, do not qualify for hedge accounting. The derivatives are recorded on the balance sheet at fair value and changes in fair value of both the customer and the offsetting swap agreements are recorded (and essentially offset) in non-interest income. The fair value of the derivative instruments incorporates a consideration of credit risk (in accordance with ASC 820, Fair Value Measurements and Disclosures), resulting in some volatility in earnings each period.
Securities Sold Under Repurchase Agreements	SECURITIES SOLD UNDER REPURCHASE AGREEMENTS Securities sold under repurchase agreements represent securities the Corporation routinely sells to certain treasury management customers and then repurchases these securities the next day. Securities sold under repurchase agreements are reflected as secured borrowings in the consolidated balance sheets at the amount of cash received in connection with each transaction.
Revenue Recognition	REVENUE RECOGNITION Revenue recognition guidance was adopted by the Corporation on January 1, 2018. ASU 2014-09 establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of the Corporation's revenue-generating transactions are not subject to ASU 2014-09, including revenue generated from financial instruments, such as loans, letters of credit, derivatives and investment securities, as well as revenue related to mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within the disclosures. The Corporation has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. Descriptions of revenue-generating activities that are within the scope of ASU 2014-09, which are presented in our income statements are as follows: Service charges on deposit accounts: The Corporation earns fees from its deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering and ACH fees, are recognized at the time the transaction is executed, which is the point in time the Corporation fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned monthly, representing the period which the Corporation satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance. Fiduciary activities: This represents monthly fees due from wealth management customers as consideration for managing the customers' assets. Wealth management and trust services include custody of assets, investment management, fees for trust services and similar fiduciary activities. These fees are primarily earned over time as the Corporation provides the contracted monthly or quarterly services and are generally assessed based on the market value of assets under management at month-end. Fees that are transaction-based are recognized at the point in time that the transaction is executed. Investment Brokerage Fees: The Corporation earns fees from investment brokerage services provided to its customers by a third-party service provider. The Corporation receives commissions from the third-party provider on a monthly basis based upon customer activity for the month. The fees are paid to us by the third party on a monthly basis and are recognized when received. Interchange income: The Corporation earns interchange fees from debit and credit cardholder transactions conducted through the Visa and MasterCard payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized concurrent with the transaction processing services provided to the cardholder. Gains (Losses) on Sales of OREO: The Corporation records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Corporation finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Corporation adjusts the transaction price and related gain (loss) on sale if a significant financing component is present.
Share Based Compensation	SHARE-BASED COMPENSATION Stock option and restriced stock award plans are maintained by the Corporation. The compensation costs are recognized for stock options and restricted stock awards issued to employees and directors based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options. The market price of the Corporation’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the appropriate service period, which is generally two or three years.
Income Tax	INCOME TAX Income tax expense in the consolidated statements of income is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts from the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. The Corporation files consolidated income tax returns with its subsidiaries. The Corporation is generally no longer subject to U.S. federal, state and local income tax examinations by tax authorities for tax years before 2017. The Corporation adopted the provisions of the ASC 740, Income Taxes, which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As a result of the implementation of ASC 740, the Corporation did not identify any uncertain tax positions that it believes should be recognized in the financial statements. The Corporation reviews income tax expense and the carrying value of deferred tax assets and liabilities quarterly; as new information becomes available, the balances are adjusted, if applicable. The Corporation's policy is to recognize interest and penalties related to unrecognized tax benefits, if any, as a component of income tax expense.
Net Income Per Share	NET INCOME PER SHARE Net income per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding. Diluted net income per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding, plus the dilutive effect of outstanding stock options and non-vested restricted stock.
Recent Accounting Changes	RECENT ACCOUNTING CHANGES ADOPTED IN 2020 FASB Accounting Standards Updates No. 2018-15 - Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Summary - The FASB issued Accounting Standards Update (ASU) No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which reduces complexity for the accounting for costs of implementing a cloud computing service arrangement. This standard aligns the accounting for implementation costs of hosting arrangements, regardless of whether they convey a license to the hosted software. The ASU aligns the following requirements for capitalizing implementation costs: •Those incurred in a hosting arrangement that is a service contract, and •Those incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). For calendar-year public companies, the changes were effective for fiscal years beginning after December 15, 2019. The Corporation adopted the standard in the first quarter of 2020 and adoption of the standard did not have a significant effect on the Corporation’s consolidated financial statements. FASB Accounting Standards Updates No. 2018-14 - Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans Summary - The FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans, that applies to all employers that sponsor defined benefit pension or other postretirement plans. The amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Disclosure Requirements Deleted •The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year. •The amount and timing of plan assets expected to be returned to the employer. •Related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan. •For public entities, the effects of a one-percentage-point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits. Disclosure Requirements Added •An explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendments also clarify the disclosure requirements in paragraph 715-20-50-3, which state that the following information for defined benefit pension plans should be disclosed: •The projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets, and •The accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. ASU No. 2018-14 is effective for fiscal years ending after December 15, 2020, for public business entities and for fiscal years ending after December 15, 2021, for all other entities. Early adoption is permitted for all entities. The Corporation adopted the standard in the first quarter of 2020 and adoption of the standard did not have a significant effect on the Corporation’s consolidated financial statements. FASB Accounting Standards Updates No. 2018-13 - Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement Summary - The FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. ASU No. 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. Certain disclosure requirements related to transfers between Level 1 and Level 2 of the fair value hierarchy and Level 3 valuation process were removed from Topic 820. Disclosures were also added to Topic 820 for changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. In addition, the amendments eliminate "at a minimum" from the phrase “an entity shall disclose at a minimum” to promote the appropriate exercise of discretion by entities when considering fair value measurement disclosures and to clarify that materiality is an appropriate consideration of entities and their auditors when evaluating disclosure requirements. The amendments in ASU No. 2018-13 were effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty were applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments were applied retrospectively to all periods presented upon their effective date. Early adoption was permitted. An entity was permitted to early adopt any removed or modified disclosures upon issuance of ASU No. 2018-13 and delay adoption of the additional disclosures until their effective date. The Corporation adopted the standard in the first quarter of 2020 and adoption of the standard did not have a significant effect on the Corporation’s disclosures. FASB Accounting Standards Updates No. 2017-04 - Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. Summary - The FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill, which simplifies how an entity is required to test goodwill for impairment. To simplify the subsequent measurement of goodwill, the ASU eliminates Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, the income tax effects of tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the qualitative impairment test is necessary. The amendments were applied on a prospective basis. The Corporation adopted ASU No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill, January 1, 2020 and assessed the recent economic impact and market conditions from the COVID-19 pandemic. At September 30, 2020 and December 31, 2020, the Corporation performed a goodwill impairment test which included various valuation considerations including comparable peer data, precedent transaction comparables, discounted cash flow analysis, overall financial performance, share price of the Corporation's common stock and other factors. The testing resulted in a conclusion that it was not more likely than not that the fair value of the Corporation had declined below its carrying value; therefore, goodwill was not impaired at September 30, 2020 or December 31, 2020. Goodwill assessments are highly sensitive to economic projections and the related assumptions used by management. In the event of a prolonged economic downturn or further deterioration in the economic outlook, continued assessments of our goodwill balance will likely be required in future periods. Details of the goodwill impairment test are included in NOTE 8. GOODWILL of these Notes to Consolidated Financial Statements. Guidance on Non-TDR Loan Modifications due to COVID-19 On March 22, 2020, a statement was issued by the Bank's banking regulators and titled the “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus” (the "Interagency Statement") that encourages financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of COVID-19. Additionally, Section 4013 of the CARES Act further provides that a qualified loan modification is exempt by law from classification as a troubled debt restructure as defined by GAAP, from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak under the National Emergencies Act (50 U.S.C. 1601 et seq.) terminates. The Interagency Statement was subsequently revised on April 7, 2020 to clarify the interaction of the original guidance with Section 4013 of the CARES Act, as well as setting forth the banking regulators’ views on consumer protection considerations. In accordance with such guidance, the Bank has offered short-term modifications made in response to COVID-19 to borrowers who were current and otherwise not past due. These included short-term, 180 days or less, modifications in the form of payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. On December 27, 2020, a $900 billion COVID-19 relief package, as passed by the U.S. Congress, was signed into law as part of the 2021 Consolidated Appropriations Act (“CAA”) that provides federal government funding through the end of its 2021 fiscal year. In addition to delivering direct stimulus payments to certain individuals, an increase in unemployment insurance benefits, an extension of the eviction moratorium, relief to the healthcare industry, and additional aid to various other businesses, the COVID-19-related provisions of the CAA provide for (i) an additional $284 billion in funding for the Paycheck Protection Program (“PPP”), through March 31, 2021, (ii) an extension of the temporary delay for implementation of the CECL accounting standard, and (iii) further suspension of the troubled debt restructure assessment and reporting requirements for financial institutions under GAAP. Details of the Corporation's modifications are included in the "LOAN QUALITY" section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 7 of this Annual Report on Form 10-K. NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED The Corporation continually monitors potential accounting pronouncement and SEC release changes. The following pronouncements and releases have been deemed to have the most applicability to the Corporation's financial statements: FASB Accounting Standards Updates No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Summary - The FASB issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This new guidance was issued to address concerns that current generally accepted accounting principles ("GAAP") restricts the ability to record credit losses that are expected, but do not yet meet the “probable” threshold by replacing the current “incurred loss” model for recognizing credit losses with an “expected life of loan loss” model referred to as the Current Expected Credit Loss ("CECL") model. Under the CECL model, certain financial assets carried at amortized cost, such as loans held for investment and held-to-maturity debt securities, are required to be presented at the net amount expected to be collected. The measurement of expected credit losses is to be based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This measurement will take place at the time the financial asset is first added to the balance sheet and periodically thereafter. This differs significantly from the “incurred loss” model required under current GAAP, which delays recognition until it is probable a loss has been incurred. The change could materially affect how the allowance for loan losses is determined and cause a charge/credit to earnings through the provision for loan losses. Such could create volatility in earnings and could adversely affect the financial condition of the Corporation. The Corporation developed models that satisfy the requirements of the new standard which are governed by a system of internal controls and a cross-functional working group consisting of accounting, finance, and credit administration personnel. The loan portfolio was pooled into ten loan segments with similar risk characteristics for which the probability of default/loss given default methodology was applied. The Corporation utilized a one-year economic forecast period then reverted to historical macroeconomic levels for the remaining life of the portfolio. A baseline macroeconomic scenario, along with other scenarios, was used to develop a range of estimated credit losses for which to determine the best estimate within. The ASU was effective for SEC filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Pursuant to the CARES Act and the related joint statement of federal banking regulators (which also became effective as of March 27, 2020), and consistent with guidance from the SEC and FASB, the Corporation elected to delay implementation of ASU No. 2016-13, which was set to expire on December 31, 2020. However, the CAA (as discussed above) extended the temporary relief from CECL compliance to the earlier of the first day of the fiscal year that begins after the date on which the national emergency concerning COVID-19 terminates, or January 1, 2022. The Corporation elected to delay implementation of CECL following the approval of the CARES Act and, with the enactment of the CAA, the Corporation has elected to further delay adoption of CECL to January 1, 2021. This will allow the Corporation to utilize the CECL standard for the entire year of adoption. As a result of the Corporation’s election, its 2020 financial statements have been prepared under the existing incurred loss model. As of the adoption and day one measurement date of January 1, 2021, the Corporation recorded a one-time cumulative-effect adjustment to retained earnings, net of income taxes, on the consolidated balance sheet. The allowance increased 57 percent from December 31, 2020 because it covered expected credit losses over the life of the loan portfolio, which approximates four years, and it included an allowance on all purchased loans that were previously excluded from the allowance for loan losses calculation. CECL also requires the establishment of a reserve for potential losses from unfunded commitments that is recorded in other liabilities, separate from allowance for credit losses, which was approximately $21 million. Also as required by CECL, the Corporation reviewed the held-to-maturity debt securities portfolio and determined the expected losses were immaterial. FASB Accounting Standards Updates No. 2019-11 - Codification Improvements to (Topic 326): Financial Instruments - Credit Losses Summary - The FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses in order to address issues raised by stakeholders during the implementation of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments. Among other narrow-scope improvements, the new ASU clarifies guidance around how to report expected recoveries. “Expected recoveries” describes a situation in which an organization recognizes a full or partial write-off of the amortized cost basis of a financial asset, but then later determines that the amount written off, or a portion of that amount, will in fact be recovered. While applying the credit losses standard, stakeholders questioned whether expected recoveries were permitted on assets that had already shown credit deterioration at the time of purchase (also known as PCD assets). In response to this question, the ASU permits organizations to record expected recoveries on PCD assets. In addition to other narrow technical improvements, the ASU also reinforces existing guidance that prohibits organizations from recording negative allowances for available-for-sale debt securities. The ASU includes effective dates and transition requirements that vary depending on whether or not an entity has already adopted ASU No. 2016-13. As discussed above, pursuant to the CARES Act, the Corporation elected to defer the adoption of CECL. Additionally, the 2021 Consolidated Appropriations Act ("CAA"), signed into law on December 27, 2020, amended the CARES Act by extending the temporary relief from CECL compliance to the earlier of the first day of the fiscal year that begins after the date on which the national emergency concerning COVID-19 terminates, or January 1, 2022. The Corporation elected to delay implementation of CECL following the approval of the CARES Act and, with the enactment of the CAA, the Corporation has elected to further delay adoption of CECL to January 1, 2021. The Corporation is not expecting adoption of the standard to have a significant effect on the Corporation’s consolidated financial statements or disclosures. FASB Accounting Standards Updates - No. 2020-04 - Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Summary - The FASB issued ASU No. 2020-04 to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. LIBOR and other interbank offered rates are widely used benchmarks or reference rates in the United States and globally. Trillions of dollars in loans, derivatives, and other financial contracts reference LIBOR, the benchmark interest rate banks use to make short-term loans to each other. With global capital markets expected to move away from LIBOR and other interbank offered rates and move toward rates that are more observable or transaction based and less susceptible to manipulation, the FASB launched a broad project in late 2018 to address potential accounting challenges expected to arise from the transition. The new guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The ASU is intended to help stakeholders during the global market-wide reference rate transition period. Entities may apply this ASU as of the beginning of an interim period that includes the March 12, 2020 issuance date of the ASU, through December 31, 2022. The Corporation expects to adopt the practical expedients included in the ASU prior to December 31, 2022. The Corporation is implementing a transition plan to identify and modify its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Corporation is assessing ASU 2020-04 and its impact on the Corporation's transition away from LIBOR for its loans and other financial instruments.

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

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


	Fair Value
Cash and cash equivalents	$	10,222
Interest-bearing time deposits	281,228
Investment securities	212,235

Loans	732,578
Premises and equipment	21,664
Federal Home Loan Bank stock	4,148
Interest receivable	3,361
Cash surrender value of life insurance	59,545
Tax asset, deferred and receivable	5,205
Other assets	6,011
Deposits	(1,105,926)
Securities sold under repurchase agreements	(94,760)
Federal Home Loan Bank advances	(10,853)
Other liabilities	(9,807)
Net tangible assets acquired	114,851
Core deposit intangible	16,527
Goodwill	98,563
Purchase price	$	229,941

Schedule of Acquired Loan Data

Acquired loan data for MBT is included in the following table:


	Fair Value of Acquired Loans at Acquisition Date		Gross Contractual Amounts Receivable at Acquisition Date		Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected
Acquired receivables subject to ASC 310-30	$	3,531	$	6,840	$	2,733
Acquired receivables not subject to ASC 310-30	$	729,047	$	907,210	$	14,722

The following table presents loans acquired during the period ending December 31, 2019, for which it was probable at acquisition that all contractually required payments would not be collected.


	2019
	MBT
Contractually required payments receivable at acquisition date	$	6,840
Nonaccretable difference	2,733
Expected cash flows at acquisition date	4,107
Accretable difference	576
Basis in loans at acquisition date	$	3,531

Schedule of Pro Forma Information from Acquisition


	Year Ended December 31, 2019
Total revenue (net interest income plus other income)	$	474,891
Net income available to common shareholders	$	161,228
Earnings per share:
Basic	$	2.89
Diluted	$	2.88

Investment Securities (Tables)

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

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

The amortized cost, gross unrealized gains, gross unrealized losses and approximate fair value of the Corporation's investment securities at the dates indicated were:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale at December 31, 2020
U.S. Government-sponsored agency securities	$	2,380	$	50	$	—	$	2,430
State and municipal	1,168,711		89,420		246		1,257,885
U.S. Government-sponsored mortgage-backed securities	632,267		22,505		103		654,669
Corporate obligations	4,031		104		—		4,135


Total available for sale	1,807,389		112,079		349		1,919,119
Held to maturity at December 31, 2020
U.S. Government-sponsored agency securities	31,087		10		113		30,984
State and municipal	619,927		34,978		32		654,873
U.S. Government-sponsored mortgage-backed securities	575,154		17,889		107		592,936
Foreign investment	1,500		—		—		1,500
Total held to maturity	1,227,668		52,877		252		1,280,293
Total Investment Securities	$	3,035,057	$	164,956	$	601	$	3,199,412


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for sale at December 31, 2019
U.S. Government-sponsored agency securities	$	38,529	$	346	$	—	$	38,875
State and municipal	859,511		41,092		807		899,796
U.S. Government-sponsored mortgage-backed securities	842,349		10,378		1,404		851,323
Corporate obligations	31		—		—		31


Total available for sale	1,740,420		51,816		2,211		1,790,025
Held to maturity at December 31, 2019
U.S. Government-sponsored agency securities	15,619		1		37		15,583
State and municipal	354,115		15,151		107		369,159
U.S. Government-sponsored mortgage-backed securities	434,804		6,921		401		441,324
Foreign investment	1,500		—		—		1,500
Total held to maturity	806,038		22,073		545		827,566
Total Investment Securities	2,546,458		73,889		2,756		2,617,591

Investments' Gross Unrealized Losses and Fair Value Aggregated by Investment Category and Length of Time in 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
Temporarily Impaired Available for Sale Securities at December 31, 2020

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

Total Temporarily Impaired Available for Sale Securities	15,019		349		—		—		15,019		349
Temporarily Impaired Held to Maturity Securities at December 31, 2020
U.S. Government-sponsored agency securities	20,881		113		—		—		20,881		113
State and municipal	3,477		32		—		—		3,477		32
U.S. Government-sponsored mortgage-backed securities	41,504		107		—		—		41,504		107

Total Temporarily Impaired Held to Maturity Securities	65,862		252		—		—		$	65,862	252
Total Temporarily Impaired Investment Securities	$	80,881	$	601	$	—	$	—	$	80,881	$	601


	Less than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Temporarily Impaired Available for Sale Securities at December 31, 2019

State and municipal	$	76,273	$	807	$	—	$	—	$	76,273	$	807
U.S. Government-sponsored mortgage-backed securities	127,673		1,326		20,796		78		148,469		1,404

Total Temporarily Impaired Available for Sale Securities	203,946		2,133		20,796		78		224,742		2,211
Temporarily Impaired Held to Maturity Securities at December 31, 2019
U.S. Government-sponsored agency securities	3,016		4		12,467		33		15,483		37
State and municipal	22,947		107		—		—		22,947		107
U.S. Government-sponsored mortgage-backed securities	124,253		364		7,991		37		132,244		401

Total Temporarily Impaired Held to Maturity Securities	150,216		475		20,458		70		170,674		545
Total Temporarily Impaired Investment Securities	$	354,162	$	2,608	$	41,254	$	148	$	395,416	$	2,756

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


	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturity Distribution at December 31, 2020
Due in one year or less	$	1,349	$	1,353	$	9,712	$	9,755
Due after one through five years	5,545		5,764		22,241		23,190
Due after five through ten years	70,777		75,223		115,408		121,333
Due after ten years	1,097,451		1,182,110		505,153		533,079
	1,175,122		1,264,450		652,514		687,357
U.S. Government-sponsored mortgage-backed securities	632,267		654,669		575,154		592,936


Total Investment Securities	$	1,807,389	$	1,919,119	$	1,227,668	$	1,280,293


	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Maturity Distribution at December 31, 2019
Due in one year or less	$	1,134	$	1,136	$	9,920	$	10,105
Due after one through five years	5,031		5,141		45,197		45,654
Due after five through ten years	74,745		76,920		84,153		88,844
Due after ten years	817,161		855,505		231,964		241,639
	898,071		938,702		371,234		386,242
U.S. Government-sponsored mortgage-backed securities	842,349		851,323		434,804		441,324

Total Investment Securities	$	1,740,420	$	1,790,025	$	806,038	$	827,566

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

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


	2020		2019		2018
Sales and Redemptions of Available for Sale Securities:
Gross gains	$	11,895	$	4,415	$	4,269
Gross losses	—		—		—

Loans and Allowance (Tables)

12 Months Ended

Dec. 31, 2020

Composition of Loan Portfolio by Loan Class

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


	December 31, 2020		December 31, 2019

Commercial and industrial loans	$	2,776,699	$	2,109,879
Agricultural land, production and other loans to farmers	281,884		334,172
Real estate loans:
Construction	484,723		787,568
Commercial real estate, non-owner occupied	2,220,949		1,902,692
Commercial real estate, owner occupied	958,501		909,695
Residential	1,234,741		1,143,217
Home equity	508,259		588,984
Individuals' loans for household and other personal expenditures	129,479		135,989
Public finance and other commercial loans	647,939		547,114
Loans	9,243,174		8,459,310
Allowance for loan losses	(130,648)		(80,284)
Net Loans	$	9,112,526	$	8,379,026

Changes in Allowance for Loan Losses

The following tables summarize changes in the allowance for loan losses by loan segment for the twelve months ended December 31, 2020, 2019, and 2018:


	Twelve Months Ended December 31, 2020
	Commercial		Commercial Real Estate		Consumer		Residential		Total
Allowance for loan losses:
Balances, December 31, 2019	$	32,902	$	28,778	$	4,035	$	14,569	$	80,284




Provision for losses	21,930		22,174		5,996		8,573		58,673

Recoveries on loans	819		431		260		666		2,176
Loans charged off	(8,536)		(313)		(643)		(993)		(10,485)
Balances, December 31, 2020	$	47,115	$	51,070	$	9,648	$	22,815	$	130,648


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


	Twelve Months Ended December 31, 2018
	Commercial		Commercial Real Estate		Consumer		Residential		Total
Allowance for loan losses:
Balances, December 31, 2017	$	30,420	$	27,343	$	3,732	$	13,537	$	75,032
Provision for losses	2,097		2,482		679		1,969		7,227
Recoveries on loans	2,456		2,525		302		993		6,276
Loans charged off	(2,316)		(2,741)		(749)		(2,177)		(7,983)
Balances, December 31, 2018	$	32,657	$	29,609	$	3,964	$	14,322	$	80,552

Allowance for Credit Losses and Loan Portfolio by Loan Segment

The tables below show the Corporation’s allowance for loan losses and loan portfolio by loan segment for the years indicated.


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

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


	December 31, 2019
	Commercial		Commercial Real Estate		Consumer		Residential		Total
Allowance balances:
Individually evaluated for impairment	$	—	$	231	$	—	$	458	$	689
Collectively evaluated for impairment	32,902		28,547		4,035		14,111		79,595

Total allowance for loan losses	$	32,902	$	28,778	$	4,035	$	14,569	$	80,284
Loan balances:
Individually evaluated for impairment	$	457	$	8,728	$	4	$	2,520	$	11,709
Collectively evaluated for impairment	2,748,681		3,821,660		135,985		1,727,966		8,434,292
Loans acquired with deteriorated credit quality	1,716		9,878		—		1,715		13,309
Loans	$	2,750,854	$	3,840,266	$	135,989	$	1,732,201	$	8,459,310

Summary of Non-Accrual Loans by Loan class

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


	December 31, 2020		December 31, 2019
Commercial and industrial loans	$	2,329	$	1,255
Agricultural land, production and other loans to farmers	1,012		1,180
Real estate loans:
Construction	123		977
Commercial real estate, non-owner occupied	46,316		3,351
Commercial real estate, owner occupied	3,040		2,659
Residential	6,517		5,062
Home equity	2,095		1,421
Individuals' loans for household and other personal expenditures	39		44


Total	$	61,471	$	15,949

Composition of Impaired Loans by Loan Class

The following tables show the composition of the Corporation’s impaired loans, related allowance and interest income recognized while impaired by loan class for the years indicated:


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

Real estate loans:

Commercial real estate, non-owner occupied	4,958		4,694		—		4,850		145
Commercial real estate, owner occupied	2,125		1,310		—		1,429		—
Residential	957		816		—		840		3

Individuals' loans for household and other personal expenditures	2		2		—		3		—


Total	$	9,101	$	7,813	$	—	$	8,113	$	148
Impaired loans with related allowance:
Commercial and industrial loans	$	268	$	268	$	223	$	267	$	—
Agricultural land, production and other loans to farmers	640		562		3		589		—
Real estate loans:

Commercial real estate, non-owner occupied	44,016		43,715		11,686		44,119		—
Commercial real estate, owner occupied	2,061		1,323		557		1,447		—
Residential	2,041		2,014		352		2,108		70
Home equity	487		461		80		473		14



Total	$	49,513	$	48,343	$	12,901	$	49,003	$	84
Total Impaired Loans	$	58,614	$	56,156	$	12,901	$	57,116	$	232


	December 31, 2019
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance:
Commercial and industrial loans	$	320	$	320	$	—	$	320	$	—
Agricultural land, production and other loans to farmers	752		381		—		542		—
Real estate loans:
Construction	1,206		970		—		1,229		—
Commercial real estate, non-owner occupied	6,202		5,299				5,399		156
Commercial real estate, owner occupied	1,382		306		—		357		—
Residential	93		76		—		77		3




Total	$	9,955	$	7,352	$	—	$	7,924	$	159
Impaired loans with related allowance:

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


Commercial real estate, owner occupied	2,060		1,324		124		1,324		—
Residential	2,070		2,044		383		2,083		63
Home equity	417		400		75		409		12
Individuals' loans for household and other personal expenditures	4		4		—		4		—


Total	$	5,139	$	4,357	$	689	$	4,405	$	75
Total Impaired Loans	$	15,094	$	11,709	$	689	$	12,329	$	234


	December 31, 2018
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance:
Commercial and industrial loans	$	828	$	806	$	—	$	833	$	—
Agricultural land, production and other loans to farmers	679		679		—		1,213		—
Real estate loans:
Construction	1,352		614		—		835		—
Commercial real estate, non-owner occupied	7,795		6,891		—		10,239		—
Commercial real estate, owner occupied	3,381		2,103				2,202		165
Residential	118		100		—		101		3
Home equity	49		48		—		48		—




Public finance and other commercial loans	353		353		—		353		—
Total	$	14,555	$	11,594	$	—	$	15,824	$	168
Impaired loans with related allowance:


Real estate loans:
Construction	$	7,978	$	7,977	$	1,429	$	7,977	$	—

Commercial real estate, owner occupied	171		171		6		171
Residential	1,958		1,907		362		1,915		57
Home equity	376		358		74		365		10
Individuals' loans for household and other personal expenditures	18		18		1		20		1



Total	$	10,501	$	10,431	$	1,872	$	10,448	$	68
Total Impaired Loans	$	25,056	$	22,025	$	1,872	$	26,272	$	236

Credit Quality of Loan Portfolio by Loan Class


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

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


	December 31, 2019
	Commercial Pass		Commercial Special Mention		Commercial Substandard		Commercial Doubtful		Commercial Loss		Consumer Performing		Consumer Non Performing		Total
Commercial and industrial loans	$	1,956,985	$	81,179	$	71,715	$	—	—		$	—	$	—	$	2,109,879
Agricultural land, production and other loans to farmers	291,790		11,008		29,393		—		—		1,981		—		334,172
Real estate loans:
Construction	749,249		1,613		1,634		—		—		35,072		—		787,568
Commercial real estate, non-owner occupied	1,814,187		38,366		50,139		—		—		—		—		1,902,692
Commercial real estate, owner occupied	866,947		14,028		28,720		—		—		—		—		909,695
Residential	196,710		877		8,075		—		—		932,743		4,812		1,143,217
Home equity	24,211		257		682		—		—		562,507		1,327		588,984
Individuals' loans for household and other personal expenditures	—		—		—		—		—		135,944		45		135,989

Public finance and other commercial loans	547,114		—		—		—		—		—		—		547,114
Loans	$	6,447,193	$	147,328	$	190,358	$	—	$	—	$	1,668,247	$	6,184	$	8,459,310

Past Due Aging of Loan Portfolio by Loan Class

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


	December 31, 2020
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Total		Past due 90+ days and still accruing
Commercial and industrial loans	$	2,761,473	$	5,866	$	6,571	$	2,789	$	15,226	$	2,776,699	$	594
Agricultural land, production and other loans to farmers	280,615		146		226		897		1,269		281,884		—
Real estate loans:
Construction	484,706		—		17		—		17		484,723		—
Commercial real estate, non-owner occupied	2,184,681		2,525		2,109		31,634		36,268		2,220,949		—
Commercial real estate, owner occupied	951,561		4,854		180		1,906		6,940		958,501		—
Residential	1,226,779		3,269		1,429		3,264		7,962		1,234,741		133
Home equity	503,596		2,644		559		1,460		4,663		508,259		19
Individuals' loans for household and other personal expenditures	129,049		334		96		—		430		129,479		—

Public finance and other commercial loans	647,939		—		—		—		—		647,939		—
Loans	$	9,170,399	$	19,638	$	11,187	$	41,950	$	72,775	$	9,243,174	$	746


	December 31, 2019
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Total		Past due 90+ days and still accruing
Commercial and industrial loans	$	2,105,757	$	3,086	$	154	$	882	$	4,122	$	2,109,879	$	4
Agricultural land, production and other loans to farmers	333,012		46		64		1,050		1,160		334,172		—
Real estate loans:
Construction	785,936		1,632		—		—		1,632		787,568		—
Commercial real estate, non-owner occupied	1,899,190		1,348		544		1,610		3,502		1,902,692		—
Commercial real estate, owner occupied	906,881		976		208		1,630		2,814		909,695		—
Residential	1,134,650		4,976		1,279		2,312		8,567		1,143,217		22
Home equity	584,506		3,083		611		784		4,478		588,984		42
Individuals' loans for household and other personal expenditures	135,445		439		105		—		544		135,989		1

Public finance and other commercial loans	547,114		—		—		—		—		547,114		—
Loans	$	8,432,491	$	15,586	$	2,965	$	8,268	$	26,819	$	8,459,310	$	69

Schedules of Troubled Debt Restructuring

The following tables summarize troubled debt restructures in the Corporation's loan portfolio that occurred during the periods ended December 31, 2020 and 2019:


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

Commercial real estate, owner occupied	107		107		1
Residential	2,730		2,780		38
Home equity	332		332		3
Individuals' loans for household and other personal expenditures	19		19		2

Total	$	4,413	$	4,473	49


	December 31, 2019
	Pre-Modification Recorded Balance		Post-Modification Recorded Balance		Number of Loans


Real estate loans:



Residential	$	636	$	629	11
Home equity	56		61		2


Total	$	692	$	690	13

The following tables summarize the recorded investment of troubled debt restructures as of December 31, 2020 and 2019, by modification type, that occurred during the years indicated:


	December 31, 2020
	Term Modification		Rate Modification		Combination		Total Modification
Commercial and industrial loans	$	585	$	—	$	—	$	585

Real estate loans:
Construction	—		—		120		120

Commercial real estate, owner occupied	103		—		—		103
Residential	2,253		159		220		2,632
Home equity	236		93		—		329
Individuals' loans for household and other personal expenditures	16		—		—		16

Total	$	3,193	$	252	$	340	$	3,785


	December 31, 2019
	Term Modification		Rate Modification		Combination		Total Modification


Real estate loans:



Residential	$	95	$	87	$	432	$	614
Home equity	—		—		61		61


Total	$	95	$	87	$	493	$	675


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

Real estate loans:


Residential	8	610
Home equity	1	93

Total	11	$	1,288


	Twelve Months Ended December 31, 2019
	Number of Loans	Recorded Balance


Real estate loans:


Residential	1	$	37

Total	1	$	37

Accounting for Certain Loans Acquired in a Purchase (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement

The accretable amount, or income expected to be collected, and reclassifications from nonaccretable, are identified in the table below.


	Twelve Months Ended December 31, 2020		Twelve Months Ended December 31, 2019		Twelve Months Ended December 31, 2018
Beginning balance	$	2,132	$	2,143	$	2,890
Additions	—		576		—
Accretion	(2,852)		(2,387)		(4,118)
Reclassification from nonaccretable	1,947		1,965		3,387
Disposals	(7)		(165)		(16)
Ending balance	$	1,220	$	2,132	$	2,143

Schedule of Loans Acquired for which Contractually Required Payments would not be Collected

Acquired loan data for MBT is included in the following table:


	Fair Value of Acquired Loans at Acquisition Date		Gross Contractual Amounts Receivable at Acquisition Date		Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected
Acquired receivables subject to ASC 310-30	$	3,531	$	6,840	$	2,733
Acquired receivables not subject to ASC 310-30	$	729,047	$	907,210	$	14,722

The following table presents loans acquired during the period ending December 31, 2019, for which it was probable at acquisition that all contractually required payments would not be collected.


	2019
	MBT
Contractually required payments receivable at acquisition date	$	6,840
Nonaccretable difference	2,733
Expected cash flows at acquisition date	4,107
Accretable difference	576
Basis in loans at acquisition date	$	3,531

Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Schedule of Premises and Equipment

The following table summarizes the Corporation's premises and equipment as of December 31, 2020 and 2019:


	2020		2019
Cost at December 31:
Land	$	25,619	$	25,227
Buildings and Leasehold Improvements	163,588		162,391
Equipment	127,341		124,327
Total Cost	316,548		311,945
Accumulated Depreciation and Amortization	(205,486)		(198,890)
Net	$	111,062	$	113,055

Goodwill (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill


	2019
Balance, January 1	$	445,355
Goodwill acquired	97,844

Measurement period adjustment	$	719
Balance, December 31	$	543,918

Other Intangibles (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Core Deposit and Other Intangibles

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


	2020		2019
Gross carrying amount	$	102,396	$	85,869
Core deposit intangible acquired	—		16,527


Accumulated amortization	(73,421)		(67,434)

Total core deposit and other intangibles	$	28,975	$	34,962

Schedule of Estimated Future Amortization Expense

Estimated future amortization expense is summarized as follows:


	Amortization Expense
2021	$	5,429
2022	5,027
2023	4,827
2024	4,241
2025	3,526
After 2025	5,925
	$	28,975

Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Schedule of supplemental balance sheet information

Supplemental balance sheet information related to leases is presented in the table below as of December 31, 2020 and 2019:


	December 31, 2020			December 31, 2019
Operating lease assets	$	18,247		$	20,747
Total lease assets	$	18,247		$	20,747

Operating lease liabilities	$	20,058		$	21,421
Total Lease liabilities	$	20,058		$	21,421

Weighted average remaining lease term (years)
Operating leases	8.0			8.9
Weighted average discount rate
Operating leases	3.3		%	3.4		%

Schedule of components of lease expense

The table below presents the components of lease expense for the period indicated.


	Twelve Months Ended December 31, 2020		Twelve Months Ended December 31, 2019
Lease Cost:
Operating lease cost	$	3,724	$	3,617
Short-term lease cost	247		204
Variable lease cost	842		948
Sublease income	$	(43)	(13)
Total lease cost	$	4,770	4,756

Schedule of supplemental cash flow information

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


Maturity of lease liabilities	Operating Leases
2021	$	3,542
2022	3,394
2023	2,992
2024	2,921
2025	2,687
2026 and after	7,716
Total lease payments	$	23,252
Less: Present value discount	3,194
Present value of lease liabilities	$	20,058


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

Deposits (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Contractual Maturities of Time Deposits

Schedule of Deposits

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


	December 31, 2020		December 31, 2019
Demand deposits	$	6,821,152	$	5,250,568
Savings deposits	3,661,713		2,896,177
Certificates and other time deposits of $100,000 or more	346,194		736,843
Other certificates and time deposits	459,168		741,759
Brokered deposits	73,383		214,609
Total deposits	$	11,361,610	$	9,839,956

At December 31, 2020, the contractual maturities of time deposits are summarized as follows:


	Certificates and Other Time Deposits
2021	$	651,861
2022	167,919
2023	35,367
2024	13,474
2025	9,287
After 2025	837
	$	878,745

Transfers Accounted for as Secured Borrowings (Tables)

12 Months Ended

Dec. 31, 2020

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

The collateral pledged for all repurchase agreements that are accounted for as secured borrowings as of December 31, 2020 and 2019 were:


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


	December 31, 2019
	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	$	178,732	$	—	$	7,672	$	1,542	$	187,946

Borrowings (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of Debt

The following table summarizes the Corporation's borrowings as of December 31, 2020 and 2019:


	December 31, 2020		December 31, 2019
Federal funds purchased	$	—	$	55,000
Securities sold under repurchase agreements	177,102		187,946
Federal Home Loan Bank advances	389,430		351,072
Subordinated debentures and term loans	118,380		138,685
Total Borrowings	$	684,912	$	732,703

Schedule of Maturities of Long-term Debt

Contractual maturities of borrowings as of December 31, 2020, 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
2021	$	—	$	177,102	$	55,097	$	—
2022	—		—		75,097		—
2023	—		—		115,097		—
2024	—		—		10,097		—
2025	—		—		25,097		—
After 2025	—		—		108,945		122,012
ASC 805 fair value adjustments at acquisition	—		—		—		(3,632)
	$	—	$	177,102	$	389,430	$	118,380

Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The table below presents the fair value of the Corporation’s derivative financial instruments as well as their classification on the Balance Sheet as of December 31, 2020 and December 31, 2019.

Asset Derivatives

Liability Derivatives

December 31, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Balance Sheet Location

Fair
Value

Balance Sheet Location

Fair
Value

Balance Sheet Location

Fair
Value

Balance Sheet Location

Fair
Value

Derivatives designated as hedging instruments:

Interest rate contracts

Other Assets

—

Other Assets

—

Other Liabilities

2,018

Other Liabilities

1,444

Derivatives not designated as hedging instruments:

Interest rate contracts

Other Assets

74,335

Other Assets

27,855

Other Liabilities

74,335

Other Liabilities

27,855

Amount of Gain (Loss) Recognized in Other Comprehensive Income

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


Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) For the Year Ended December 31,
Derivatives in Cash Flow Hedging Relationships	2020		2019
Interest rate products	$	(1,480)	$	(1,072)

Effect of Derivative Financial Instruments on the Income Statement

The tables below present the effect of the Corporation’s derivative financial instruments on the Income Statement for the years ended December 31, 2020, 2019 and 2018.


Derivatives Designated as Hedging Instruments under FASB ASC 815-10	Location of Loss Reclassified from Accumulated Other Comprehensive Income (Effective Portion)	Amount of Loss Reclassified from Other Comprehensive Income into Income (Effective Portion)
		2020		2019		2018
Interest rate contracts	Interest expense	$	(906)	$	(334)	$	(470)

Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

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


			Fair Value Measurements Using:
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
December 31, 2020	Fair Value		(Level 1)		(Level 2)		(Level 3)
Available for sale securities:
U.S. Government-sponsored agency securities	$	2,430	$	—	$	2,430	$	—
State and municipal	1,257,885		—		1,255,441		2,444
U.S. Government-sponsored mortgage-backed securities	654,669		—		654,665		4

Corporate obligations	4,135		—		4,104		31

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

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


			Fair Value Measurements Using:
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
December 31, 2019	Fair Value		(Level 1)		(Level 2)		(Level 3)
Available for sale securities:
U.S. Government-sponsored agency securities	$	38,875	$	—	$	38,875	$	—
State and municipal	899,796		—		896,938		2,858
U.S. Government-sponsored mortgage-backed securities	851,323		—		851,319		4

Corporate obligations	31		—		—		31

Interest rate swap asset	27,855		—		27,855		—

Interest rate swap liability	29,299		—		29,299		—

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


	Available for Sale Securities
	For The Year Ended
	December 31, 2020		December 31, 2019
Beginning Balance	$	2,893	$	3,328


Included in other comprehensive income	16		80


Principal payments	(430)		(515)
Ending balance	$	2,479	$	2,893

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


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


			Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets	Significant Other Observable Inputs	Significant Unobservable Inputs
December 31, 2019	Fair Value		(Level 1)	(Level 2)	(Level 3)
Impaired Loans (collateral dependent)	$	5,653	—	—	$	5,653
Other real estate owned	$	194	—	—	$	194

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

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at December 31, 2020 and 2019.

December 31, 2020

Fair Value

Valuation Technique

Unobservable Inputs

Range (Weighted-Average)

State and municipal securities

2,444

Discounted cash flow

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

1 month to 15 years

A- to BBB-

1.5% - 4%

3.88%

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

Discounted cash flow

Risk free rate
plus Premium for illiquidity
Weighted-average coupon

3 month LIBOR

plus 200bps

Impaired loans (collateral dependent)

37,250

Collateral based measurements

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

0% - 10% (6%)

Other real estate owned

544

Appraisals

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

0% - 30% (26%)

December 31, 2019

Fair Value

Valuation Technique

Unobservable Inputs

Range (Weighted-Average)

State and municipal securities

2,858

Discounted cash flow

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

1 month to 15 years

A- to BBB-

2% - 5%

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

Discounted cash flow

Risk free rate
plus Premium for illiquidity
Weighted-average coupon

3 month LIBOR

plus 200bps

Impaired loans (collateral dependent)

5,653

Collateral based measurements

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

0% - 10% (1%)

Other real estate owned

194

Appraisals

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

0% - 37% (37%)

Estimated Fair Values of Financial Instruments


	2020
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets at December 31:
Cash and cash equivalents	$	192,896	$	192,896	$	—	$	—
Interest-bearing deposits	392,305		392,305		—		—
Investment securities available for sale	1,919,119		—		1,916,640		2,479
Investment securities held to maturity	1,227,668		—		1,260,815		19,478
Loans held for sale	3,966		—		3,966		—
Loans	9,112,526		—		—		9,191,628
Federal Home Loan Bank stock	28,736		—		28,736		—
Interest rate swap asset	74,335		—		74,335		—
Interest receivable	53,948		—		53,948		—
Liabilities at December 31:
Deposits	$	11,361,610	$	10,482,865	$	878,257	$	—
Borrowings:
Federal funds purchased	—		—		—		—
Securities sold under repurchase agreements	177,102		—		177,097		—
Federal Home Loan Bank advances	389,430		—		399,991		—
Subordinated debentures and term loans	118,380		—		108,439		—
Interest rate swap liability	76,353		—		76,353		—
Interest payable	3,287		—		3,287		—


	2019
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets at December 31:
Cash and cash equivalents	$	177,201	$	177,201	$	—	$	—
Interest-bearing deposits	118,263		118,263		—		—
Investment securities available for sale	1,790,025		—		1,787,132		2,893
Investment securities held to maturity	806,038		—		799,884		27,682
Loans held for sale	9,037		—		9,037		—
Loans	8,379,026		—		—		8,335,340
Federal Home Loan Bank stock	28,736		—		28,736		—
Interest rate swap asset	27,855		—		27,855		—
Interest receivable	48,901		—		48,901		—
Liabilities at December 31:
Deposits	$	9,839,956	$	8,146,745	$	1,675,202	$	—
Borrowings:
Federal funds purchased	55,000		—		55,000		—
Securities sold under repurchase agreements	187,946		—		187,801		—
Federal Home Loan Bank advances	351,072		—		352,581		—
Subordinated debentures and term loans	138,685		—		123,571		—
Interest rate swap liability	29,299		—		29,299		—
Interest payable	6,754		—		6,754		—

Commitments and Contingent Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Schedule of Financial Instruments which Contract Amount Represents Credit Risk

Financial instruments, whose contract amount represents credit risk as of December 31, were as follows:


	2020		2019
Amounts of commitments:
Loan commitments to extend credit	$	3,443,514	$	3,005,064
Standby letters of credit	$	29,555	$	30,200

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, as of December 31, 2020 and 2019:


	Accumulated Other Comprehensive Income (Loss)
	Unrealized Gains (Losses) on Securities Available for Sale		Unrealized Gains (Losses) on Cash Flow Hedges		Unrealized Gains (Losses) on Defined Benefit Plans		Total
Balance at December 31, 2019	$	38,872	$	(1,141)	$	(9,857)	$	27,874
Other comprehensive income before reclassifications	58,513		(1,169)		(1,767)		55,577
Amounts reclassified from accumulated other comprehensive income	(9,397)		716		66		(8,615)
Period change	49,116		(453)		(1,701)		46,962

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


Balance at December 31, 2018	$	(6,343)	$	(559)	$	(14,520)	$	(21,422)
Other comprehensive income before reclassifications	48,703		(846)		4,579		52,436
Amounts reclassified from accumulated other comprehensive income	(3,488)		264		84		(3,140)
Period change	45,215		(582)		4,663		49,296

Balance at December 31, 2019	$	38,872	$	(1,141)	$	(9,857)	$	27,874

Reclassification out of Accumulated Other Comprehensive Income (Loss)


	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Year Ended December 31,
Details about Accumulated Other Comprehensive Income (Loss) Components	2020		2019		2018		Affected Line Item in the Statements of Income
Unrealized gains (losses) on available for sale securities (1)
Realized securities gains reclassified into income	$	11,895	$	4,415	$	4,269	Other income - net realized gains on sales of available for sale securities
Related income tax expense	(2,498)		(927)		(896)		Income tax expense
	$	9,397	$	3,488	$	3,373

Unrealized gains (losses) on cash flow hedges (2)
Interest rate contracts	$	(906)	$	(334)	$	(470)	Interest expense - subordinated debentures and term loans
Related income tax benefit	190		70		99		Income tax expense
	$	(716)	$	(264)	$	(371)

Unrealized gains (losses) on defined benefit plans
Amortization of net loss and prior service costs	$	(84)	$	(106)	$	20	Other expenses - salaries and employee benefits
Related income tax benefit (expense)	18		22		(4)		Income tax expense
	$	(66)	$	(84)	$	16

Total reclassifications for the period, net of tax	$	8,615	$	3,140	3,018

Regulatory Capital and Dividends (Tables)

12 Months Ended

Dec. 31, 2020

Banking and Thrift, Interest [Abstract]

Schedule of Actual and Required Capital Amounts and Ratios


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


					Prompt Corrective Action Thresholds
	Actual				Basel III Minimum Capital Required				Well Capitalized
December 31, 2019	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total risk-based capital to risk-weighted assets
First Merchants Corporation	$	1,400,617	14.29	%	$	1,028,930	10.50	%	N/A		N/A
First Merchants Bank	1,267,649		12.87		1,033,926		10.50		$	984,691	10.00	%
Tier 1 capital to risk-weighted assets
First Merchants Corporation	$	1,255,333	12.81	%	$	832,943	8.50	%	N/A		N/A
First Merchants Bank	1,187,365		12.06		836,988		8.50		$	787,753	8.00	%
Common equity tier 1 capital to risk-weighted assets
First Merchants Corporation	$	1,188,970	12.13	%	$	685,953	7.00	%	N/A		N/A
First Merchants Bank	1,187,365		12.06		689,284		7.00		$	640,049	6.50	%
Tier 1 capital to average assets
First Merchants Corporation	$	1,255,333	10.54	%	$	476,383	4.00	%	N/A		N/A
First Merchants Bank	1,187,365		9.99		475,564		4.00		$	594,455	5.00	%

Loan Servicing (Tables)

12 Months Ended

Dec. 31, 2020

Banking and Thrift, Other Disclosures [Abstract]

Schedule Of Unpaid Balance Of Loan Service

The unpaid balances are as follows for December 31, 2020, 2019 and 2018. The amount of capitalized servicing assets is considered immaterial.


	2020		2019		2018
Mortgage loan portfolios serviced for:
Federal Home Loan Mortgage Corporation	$	514,539	$	354,393	$	351,672
Fannie Mae	69,072		82,922		92,552
Federal Home Loan Bank	51,479		76,815		88,931
Chevy Chase Mortgage Company	134		164		231
Total	$	635,224	$	514,294	$	533,386

Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Components of Share Based Compensation Awards


	Years Ended December 31,
	2020		2019		2018
Stock and ESPP Options
Pre-tax compensation expense	$	96	$	101	$	109
Income tax benefit	(29)		(70)		(97)
Stock and ESPP option expense, net of income taxes	$	67	$	31	$	12
Restricted Stock Awards
Pre-tax compensation expense	$	4,504	$	4,014	$	3,483
Income tax benefit	(552)		(1,206)		(1,179)
Restricted stock awards expense, net of income taxes	$	3,952	$	2,808	$	2,304
Total Share-Based Compensation:
Pre-tax compensation expense	$	4,600	$	4,115	$	3,592
Income tax benefit	(581)		(1,276)		(1,276)
Total share-based compensation expense, net of income taxes	$	4,019	$	2,839	$	2,316

Stock Option Activity Under Stock Option Plans

Stock option activity under the Corporation's stock option plans, as of December 31, 2020, and changes during the year ended December 31, 2020, were as follows:


	Number of Shares	Weighted-Average Exercise Price		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value
Outstanding at January 1, 2020	59,350	$	13.51	—	$	—

Exercised	(13,550)	$	8.48	—	$	—

Outstanding December 31, 2020	45,800	$	15.00	1.94	$	1,026,578
Vested and Expected to Vest at December 31, 2020	45,800	$	15.00	1.94	$	1,026,578
Exercisable at December 31, 2020	45,800	$	15.00	1.94	$	1,026,578

Summary of Unvested RSAs Outstanding

The following table summarizes information on unvested RSAs outstanding as of December 31, 2020:


	Number of Shares	Weighted-Average Grant Date Fair Value
Unvested RSAs at January 1, 2020	351,048	$	40.67
Granted	140,577	$	27.25
Forfeited	(5,450)	$	37.81
Vested	(128,292)	$	39.67
Unvested RSAs at December 31, 2020	357,883	$	36.30

Pension and Other Post Retirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

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

The table below sets forth the plans’ funded status and amounts recognized in the consolidated balance sheets at December 31, using measurement dates of December 31, 2020 and 2019.


	2020		2019
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	76,770	$	73,193
Service cost	16		39
Interest cost	2,343		2,975
Actuarial (gain) loss	6,957		4,007
Benefits paid	(5,300)		(5,145)
Net transfer in from MBT acquisition	—		1,701

Benefit obligation at end of year	$	80,786	$	76,770

Change in Plan Assets:
Fair value of plan assets at beginning of year	$	85,121	$	76,736
Actual return on plan assets	7,925		12,972
Employer contributions	766		558
Benefits paid	(5,300)		(5,145)

End of year	88,512		85,121
Funded status at end of year	$	7,726	$	8,351

Assets and Liabilities Recognized in the Balance Sheets:
Deferred tax asset	$	3,970	$	3,278
Assets	$	12,681	$	13,291
Liabilities	$	4,955	$	4,940

Schedule of Accumulated Benefit Obligation in Excess of Plan Assets


	December 31, 2020		December 31, 2019
Projected benefit obligation	$	4,955	$	4,940
Accumulated benefit obligation	$	4,955	$	4,940
Fair value of plan assets	$	—	$	—

Schedule of Net Periodic Pension Costs

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


	December 31, 2020		December 31, 2019		December 31, 2018
Service cost	$	16	$	39	$	8
Interest cost	2,343		2,975		2,816
Expected return on plan assets	(4,086)		(4,414)		(4,891)
Amortization of prior service cost	87		87		87
Amortization of net loss	221		404		287

Net periodic pension benefit cost	$	(1,419)	$	(909)	$	(1,693)

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

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


	December 31, 2020		December 31, 2019		December 31, 2018
Net periodic pension benefit cost	$	(1,419)	$	(909)	$	(1,693)
Net gain (loss)	(3,119)		4,552		(2,189)
Amortization of net loss	221		404		287
Amortization of prior service cost	87		87		87
Total recognized in other comprehensive income (loss)	(2,811)		5,043		(1,815)
Total recognized in net periodic pension benefit cost and other comprehensive income (loss)	$	(1,392)	$	5,952	$	(122)

Schedule of Assumptions Used

Significant assumptions include:


	December 31, 2020		December 31, 2019		December 31, 2018
Weighted-average Assumptions Used to Determine Benefit Obligation:
Discount rate	2.30	%	3.20	%	4.30	%
Rate of compensation increase for accruing active participants	n/a		n/a		n/a
Weighted-average Assumptions Used to Determine Cost:
Discount rate	3.20	%	4.30	%	3.60	%
Expected return on plan assets	5.00	%	6.00	%	6.00	%
Rate of compensation increase for accruing active participants	n/a		n/a		n/a

Schedule of Expected Benefit Payments


2021	$	5,705
2022	5,697
2023	5,601
2024	5,370
2025	5,333
After 2025	23,744
	$	51,450

Schedule of Allocation of Plan Assets

Plan assets are re-balanced quarterly. At December 31, 2020 and 2019, plan assets by category are as follows:


	December 31, 2020				December 31, 2019
	Actual		Target		Actual		Target
Cash and cash equivalents	2.7	%	3.0	%	3.0	%	3.0	%
Equity securities	53.0		50.0		52.3		50.0
Debt securities	42.3		45.0		42.3		45.0
Alternative investments	2.0		2.0		2.4		2.0
	100.0	%	100.0	%	100.0	%	100.0	%


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


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


			Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
December 31, 2019	Fair Value		(Level 1)		(Level 2)		(Level 3)
Cash & Cash Equivalents	$	2,578	$	2,578	$	—	$	—
Corporate Bonds and Notes	17,629		17,629		—		—
Government Agency and Municipal Bonds and Notes	3,660		—		3,660		—
Certificates of Deposit	772		—		772		—
Party-in-Interest Investments
Common Stock	2,516		2,516		—		—


Mutual Funds
Taxable Bond	13,938		13,938		—		—
Large Cap Equity	21,958		21,958		—		—
Mid Cap Equity	10,407		10,407		—		—
Small Cap Equity	5,753		5,753		—		—
International Equity	3,898		3,898		—		—
Specialty Alternative Equity	2,012		2,012		—		—
	$	85,121	$	80,689	$	4,432	$	—

Income Tax (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Reconciliation of Federal Statutory to Actual Tax Expense


	2020			2019			2018
Reconciliation of Federal Statutory to Actual Tax Expense:
Federal Statutory Income Tax at 21%	$	35,695		$	40,695		$	39,509
Tax-exempt Interest Income	(13,273)			(10,124)			(8,347)

Stock Compensation	338			(459)			(622)
Earnings on Life Insurance	(1,079)			(953)			(868)
Tax Credits	(425)			(263)			(615)
CARES Act - NOL carryback rate differential	(1,178)			—			—
State Tax	1,122			600			(1,219)
Other	175			(171)			1,161
Income Tax Expense	$	21,375		$	29,325		$	28,999

Effective Tax Rate	12.6		%	15.1		%	15.4		%

Components of Income Tax Expense (Benefit)

Income tax expense consists of the following components for the years ended December 31, 2020, 2019, 2018:


	2020		2019		2018
Income Tax Expense for the Year Ended December 31:
Currently Payable:
Federal	$	28,463	$	23,938	$	23,633
State	2,647		422		1,842
Deferred:
Federal	(8,508)		4,726		6,723

State	(1,227)		239		(3,199)
Income Tax Expense	$	21,375	$	29,325	$	28,999

Deferred Tax Assets and Liabilities

Significant components of the net deferred tax assets and liabilities resulting from temporary differences were as follows at December 31, 2020 and 2019:


	2020		2019
Deferred Tax Asset at December 31:
Assets:
Differences in Accounting for Loan Losses	$	31,850	$	19,717
Differences in Accounting for Loan Fees	4,328		442

Deferred Compensation	4,038		4,436

Federal & State Income Tax Loss Carryforward and Credits	2,089		6,205

Other	3,185		3,499
Total Assets	45,490		34,299
Liabilities:
Differences in Depreciation Methods	6,028		5,240
Differences in Accounting for Loans and Securities	2,840		1,192
Difference in Accounting for Pensions and Other Employee Benefits	1,258		1,556
State Income Tax	1,059		778
Net Unrealized Gain on Securities Available for Sale	23,389		10,333
Gain on FDIC Modified Whole Bank Transaction	359		413
Other	6,209		6,506
Total Liabilities	41,142		26,018
Net Deferred Tax Asset	$	4,348	$	8,281

Net Income Per Share (Tables)

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Reconciliation of Basic and Diluted Net Income Per Share

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


	2020					2019					2018
			Weighted-Average Shares					Weighted-Average Shares					Weighted-Average Shares
Basic net income per share:

Net income available to common stockholders	$	148,600	54,058,471	$	2.75	$	164,460	51,412,133	$	3.20	$	159,139	49,262,015	$	3.23
Effect of dilutive stock options and restricted stock awards			161,913					149,105					208,908
Diluted net income per share:
Net income available to common stockholders	$	148,600	54,220,384	$	2.74	$	164,460	51,561,238	$	3.19	$	159,139	49,470,923	$	3.22

Quarterly Results of Operations (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Results of Operations (Unaudited)

The following table sets forth certain quarterly results for the years ended December 31, 2020 and 2019:


	2020								2019
	First		Second		Third		Fourth		First		Second		Third		Fourth
Interest income	$	119,807	$	109,252	$	106,225	$	113,224	$	108,813	$	112,639	$	118,132	$	125,821
Interest expense	25,930		16,234		13,304		10,913		23,947		27,361		29,200		28,237
Net interest income	93,877		93,018		92,921		102,311		84,866		85,278		88,932		97,584
Provision for loan losses	19,752		21,895		12,544		4,482		1,200		500		600		500
Net interest income after provision for loan losses	74,125		71,123		80,377		97,829		83,666		84,778		88,332		97,084
Non-interest income	29,799		26,481		26,163		27,483		18,713		21,614		22,116		24,245
Non-interest expense	66,171		59,989		64,709		72,536		56,621		57,587		67,354		65,201
Income before income tax expense	37,753		37,615		41,831		52,776		45,758		48,805		43,094		56,128
Income tax expense	3,490		4,623		5,621		7,641		6,941		7,749		6,337		8,298
Net income available to common stockholders	$	34,263	$	32,992	$	36,210	$	45,135	$	38,817	$	41,056	$	36,757	$	47,830

Basic EPS	$	0.63	$	0.62	$	0.67	$	0.83	$	0.79	$	0.83	$	0.71	$	0.87
Diluted EPS	$	0.62	$	0.62	$	0.67	$	0.83	$	0.78	$	0.83	$	0.71	$	0.87
Average Shares Outstanding:
Basic	54,732,073		53,762,913		53,843,508		53,899,501		49,369,024		49,432,167		51,433,227		55,348,176
Diluted	54,917,760		53,942,567		53,970,598		54,049,574		49,540,844		49,549,887		51,569,557		55,519,953

Condensed Financial Information (parent company only) (Tables)

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Disclosure [Abstract]

Schedule of Parent Company Information, Condensed Balance Sheets

Condensed Balance Sheets


	December 31, 2020		December 31, 2019
Assets
Cash	$	59,848	$	127,723
Investment in subsidiaries	1,930,852		1,791,070

Premises and equipment	195		153
Interest receivable	2		6
Goodwill	448		448
Cash surrender value of life insurance	861		837

Other assets	12,211		16,803
Total assets	$	2,004,417	$	1,937,040
Liabilities
Subordinated debentures and term loans	$	118,380	$	138,685
Interest payable	860		977
Other liabilities	9,532		10,941
Total liabilities	128,772		150,603
Stockholders' equity	1,875,645		1,786,437
Total liabilities and stockholders' equity	$	2,004,417	$	1,937,040

Schedule of Parent Company Information, Condensed Statements of Income and Comprehensive Income

Condensed Statements of Income and Comprehensive Income


	December 31, 2020		December 31, 2019		December 31, 2018
Income
Dividends from subsidiaries	$	70,100	$	125,775	$	100,954




Other income	(62)		172		572
Total income	70,038		125,947		101,526
Expenses
Interest expense	6,777		8,309		8,233
Salaries and employee benefits	3,426		3,540		3,729
Net occupancy and equipment expenses	745		802		851
Other outside services	731		1,889		489
Professional services	218		303		270
Other expenses	1,266		1,587		442
Total expenses	13,163		16,430		14,014
Income before income tax benefit and equity in undistributed income of subsidiaries	56,875		109,517		87,512
Income tax benefit	2,260		3,575		3,298
Income before equity in undistributed income of subsidiaries	59,135		113,092		90,810
Equity in undistributed income of subsidiaries	89,465		51,368		68,329
Net income available to common stockholders	$	148,600	$	164,460	$	159,139

Net income	$	148,600	$	164,460	$	159,139
Other comprehensive income (loss)	46,962		49,296		(17,888)
Comprehensive income	$	195,562	$	213,756	$	141,251

Schedule of Parent Company Information, Condensed Statement of Cash Flows

Condensed Statements of Cash Flows


	December 31, 2020		December 31, 2019		December 31, 2018
Cash Flow From Operating Activities:
Net income	$	148,600	$	164,460	$	159,139
Adjustments to Reconcile Net Income to Net Cash:
Share-based compensation	1,502		1,339		1,256
Distributions in excess of (equity in undistributed) income of subsidiaries	(89,465)		(51,368)		(68,329)



Net Change in:
Other assets	4,038		(8,944)		584
Other liabilities	(1,521)		4,611		274
Investment in subsidiaries - operating activities	235		(268)		841
Net cash provided by operating activities	63,389		109,830		93,765
Cash Flow From Investing Activities:


Net cash received in acquisition	—		78		—

Other	—		—		2,189
Net cash provided by investing activities	—		78		2,189
Cash Flow From Financing Activities:
Cash dividends	(56,542)		(51,276)		(41,660)

Repayment of borrowings	(20,310)		—		—



Stock issued under employee benefit plans	639		702		707
Stock issued under dividend reinvestment and stock purchase plan	1,726		1,531		1,211
Stock options exercised	115		144		1,598
Restricted shares withheld for taxes	(980)		(1,680)		(1,902)
Repurchases of common stock	(55,912)		(19,041)		—
Net cash used by financing activities	(131,264)		(69,620)		(40,046)
Net change in cash	(67,875)		40,288		55,908
Cash, beginning of the year	127,723		87,435		31,527
Cash, end of year	$	59,848	$	127,723	$	87,435

Nature of Operations and Summary of Significant Accounting Policies - Allowance for Loan Losses (Details)	12 Months Ended
	Dec. 31, 2020 USD ($) key_element
Accounting Policies [Abstract]
Number of key element used in assessing the appropriateness of the allowance for loan losses \| key_element	3
Commercial relationships threshold that exhibit credit weaknesses \| $	$ 500,000

Nature of Operations and Summary of Significant Accounting Policies - Premises and Equipment (Details)	12 Months Ended
	Dec. 31, 2020
Minimum
Premises and Equipment [Line Items]
Estimated useful lives of assets	3 years
Maximum
Premises and Equipment [Line Items]
Estimated useful lives of assets	40 years

Nature of Operations and Summary of Significant Accounting Policies - Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2020
Minimum
Intangible Assets [Abstract]
Estimated useful lives of intangible assets	2 years
Maximum
Intangible Assets [Abstract]
Estimated useful lives of intangible assets	10 years

Nature of Operations and Summary of Significant Accounting Policies - Share Based Compensation (Details)	12 Months Ended
	Dec. 31, 2020
Minimum
Schedule of Stock Options and Restricted Stock Award Plans [Line Items]
Requisite service period	2 years
Maximum
Schedule of Stock Options and Restricted Stock Award Plans [Line Items]
Requisite service period	3 years

Nature of Operations and Summary of Significant Accounting Policies - Recent Accounting Changes (Details) - One-time cumulative-effect adjustment - Subsequent event $ in Millions	Jan. 01, 2021 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance increase	57.00%
Estimated
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Life of loan portfolio	4 years
Reserve for potential losses from unfunded commitments	$ 21

Acquisitions - Narrative (Details) $ in Thousands			12 Months Ended
Acquisitions - Narrative (Details) $ in Thousands	Nov. 09, 2020 USD ($)	Sep. 01, 2019 USD ($) instrument shares	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($) shares	Dec. 31, 2018 USD ($)
Business Acquisition [Line Items]
Issuance of common stock related to acquisitions			$ 0	$ 229,926	$ 0
Common Stock
Business Acquisition [Line Items]
Number of shares of common stock		0.275
Stock issued as a part of acquisition (in shares) \| shares				6,383,806
Issuance of common stock related to acquisitions				$ 798
Hoosier Trust Company
Business Acquisition [Line Items]
The consideration to be paid to the shareholders in cash	$ 3,225
MBT
Business Acquisition [Line Items]
Percentage of interest acquired		100.00%
Number of banking centers acquired \| instrument		20
Other intangible assets		$ 16,527
Operating revenue				19,700
Non-recurring expenses				$ 19,700
MBT \| Core deposit intangible acquired
Business Acquisition [Line Items]
Other intangible assets		$ 16,527
Acquired intangible asset, expected useful life		10 years
MBT \| Common Stock
Business Acquisition [Line Items]
Number of shares of common stock		0.275
Stock issued as a part of acquisition (in shares) \| shares		6,400,000
Issuance of common stock related to acquisitions		$ 229,900

Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Sep. 01, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill	$ 543,918	$ 543,918		$ 445,355
MBT
Business Acquisition [Line Items]
Cash and cash equivalents			$ 10,222
Interest-bearing time deposits			281,228
Investment securities			212,235
Loans			732,578
Premises and equipment			21,664
Federal Home Loan Bank stock			4,148
Interest receivable			3,361
Cash surrender value of life insurance			59,545
Tax asset, deferred and receivable			5,205
Other assets			6,011
Deposits			(1,105,926)
Securities sold under repurchase agreements			(94,760)
Federal Home Loan Bank advances			(10,853)
Other liabilities			(9,807)
Net tangible assets acquired			114,851
Core deposit intangible			16,527
Goodwill			98,563
Purchase price			$ 229,941

Acquisitions - Schedule of Acquired Loan Data (Details) (Details) - MBT - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 01, 2019
Business Acquisition [Line Items]
Fair Value of Acquired Loans at Acquisition Date, subject to ASC 310-30	$ 3,531	$ 3,531
Gross Contractual Amounts Receivable at Acquisition Date, subject to ASC 310-30	$ 6,840	6,840
Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected, subject to ASC 310-30		2,733
Fair Value of Acquired Loans at Acquisition Date, not subject to ASC 310-30		729,047
Gross Contractual Amounts Receivable at Acquisition Date, not subject to ASC 310-30		907,210
Best Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected, not subject to ASC 310-30		$ 14,722

Acquisitions - Pro Forma Information (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares
Business Combinations [Abstract]
Total revenue (net interest income plus other income) \| $	$ 474,891
Net income available to common shareholders \| $	$ 161,228
Earnings per share:
Basic (in dollars per share) \| $ / shares	$ 2.89
Diluted (in dollars per share) \| $ / shares	$ 2.88

Cash and Cash Equivalents (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Restricted Cash and Cash Equivalents Items [Line Items]
Balance at Federal Home Loan Bank and Federal Reserve Bank	$ 140,317
Interest-bearing Deposits
Restricted Cash and Cash Equivalents Items [Line Items]
Cash amount that exceeded federally insured limits	$ 384,234

Investment Securities - Amortized Cost and Approximate Fair Values of Securities (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Total available for sale
Amortized Cost	$ 1,807,389,000	$ 1,740,420,000
Gross Unrealized Gains	112,079,000	51,816,000
Gross Unrealized Losses	349,000	2,211,000
Fair Value	1,919,119,000	1,790,025,000
Total held to maturity
Amortized Cost	1,227,668,000	806,038,000
Gross Unrealized Gains	52,877,000	22,073,000
Gross Unrealized Losses	252,000	545,000
Fair Value	1,280,293,000	827,566,000
Total Investment Securities
Amortized Cost	3,035,057,000	2,546,458,000
Gross Unrealized Gains	164,956,000	73,889,000
Gross Unrealized Losses	601,000	2,756,000
Fair Value	3,199,412,000	2,617,591,000
U.S. Government-sponsored agency securities
Total available for sale
Amortized Cost	2,380,000	38,529,000
Gross Unrealized Gains	50,000	346,000
Gross Unrealized Losses	0	0
Fair Value	2,430,000	38,875,000
Total held to maturity
Amortized Cost	31,087,000	15,619,000
Gross Unrealized Gains	10,000	1,000
Gross Unrealized Losses	113,000	37,000
Fair Value	30,984,000	15,583,000
State and municipal
Total available for sale
Amortized Cost	1,168,711,000	859,511,000
Gross Unrealized Gains	89,420,000	41,092,000
Gross Unrealized Losses	246,000	807,000
Fair Value	1,257,885,000	899,796,000
Total held to maturity
Amortized Cost	619,927,000	354,115,000
Gross Unrealized Gains	34,978,000	15,151,000
Gross Unrealized Losses	32,000	107,000
Fair Value	654,873,000	369,159,000
U.S. Government-sponsored mortgage-backed securities
Total available for sale
Amortized Cost	632,267,000	842,349,000
Gross Unrealized Gains	22,505,000	10,378,000
Gross Unrealized Losses	103,000	1,404,000
Fair Value	654,669,000	851,323,000
Total held to maturity
Amortized Cost	575,154,000	434,804,000
Gross Unrealized Gains	17,889,000	6,921,000
Gross Unrealized Losses	107,000	401,000
Fair Value	592,936,000	441,324,000
Corporate obligations
Total available for sale
Amortized Cost	4,031,000	31,000
Gross Unrealized Gains	104,000	0
Gross Unrealized Losses	0	0
Fair Value	4,135,000	31,000
Foreign investment
Total held to maturity
Amortized Cost	1,500,000	1,500,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 1,500,000	$ 1,500,000

Investment Securities - Investments' Gross Unrealized Losses and Fair Value Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 Months, Fair Value	$ 15,019	$ 203,946
Less than 12 Months, Gross Unrealized Losses	349	2,133
12 Months or Longer, Fair Value	0	20,796
12 Months or Longer, Gross Unrealized Losses	0	78
Total, Fair Value	15,019	224,742
Total, Gross Unrealized Losses	349	2,211
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract]
Less than 12 Months, Fair Value	65,862	150,216
Less than 12 Months, Gross Unrealized Losses	252	475
12 Months or Longer, Fair Value	0	20,458
12 Months or Longer, Gross Unrealized Losses	0	70
Total, Fair Value	65,862	170,674
Total, Gross Unrealized Losses	252	545
Less than 12 Months, Fair Value	80,881	354,162
Less than 12 Months, Gross Unrealized Losses	601	2,608
12 Months or Longer, Fair Value	0	41,254
12 Months or Longer, Gross Unrealized Losses	0	148
Total, Fair Value	80,881	395,416
Total, Gross Unrealized Losses	601	2,756
Government Agency and Municipal Bonds and Notes
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract]
Less than 12 Months, Fair Value	20,881	3,016
Less than 12 Months, Gross Unrealized Losses	113	4
12 Months or Longer, Fair Value	0	12,467
12 Months or Longer, Gross Unrealized Losses	0	33
Total, Fair Value	20,881	15,483
Total, Gross Unrealized Losses	113	37
State and municipal
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 Months, Fair Value	5,368	76,273
Less than 12 Months, Gross Unrealized Losses	246	807
12 Months or Longer, Fair Value	0	0
12 Months or Longer, Gross Unrealized Losses	0	0
Total, Fair Value	5,368	76,273
Total, Gross Unrealized Losses	246	807
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract]
Less than 12 Months, Fair Value	3,477	22,947
Less than 12 Months, Gross Unrealized Losses	32	107
12 Months or Longer, Fair Value	0	0
12 Months or Longer, Gross Unrealized Losses	0	0
Total, Fair Value	3,477	22,947
Total, Gross Unrealized Losses	32	107
U.S. Government-sponsored mortgage-backed securities
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 Months, Fair Value	9,651	127,673
Less than 12 Months, Gross Unrealized Losses	103	1,326
12 Months or Longer, Fair Value	0	20,796
12 Months or Longer, Gross Unrealized Losses	0	78
Total, Fair Value	9,651	148,469
Total, Gross Unrealized Losses	103	1,404
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract]
Less than 12 Months, Fair Value	41,504	124,253
Less than 12 Months, Gross Unrealized Losses	107	364
12 Months or Longer, Fair Value	0	7,991
12 Months or Longer, Gross Unrealized Losses	0	37
Total, Fair Value	41,504	132,244
Total, Gross Unrealized Losses	$ 107	$ 401

Investment Securities - Narrative (Details)	Dec. 31, 2020 USD ($) instrument	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Schedule of Available for sale Securities and Held to maturity Securities [Line Items]
Fair value of investments	$ 80,881,000	$ 395,416,000
Unrealized losses on available for sale securities	349,000	2,211,000
Unrealized losses in held to maturity portfolios	252,000	545,000
Carrying value of securities pledged as collateral	890,025,000	503,427,000	$ 416,155,000
Securities sold under repurchase agreements	167,265,000	182,856,000
Investments in Debt and Equity Securities, Reported at Less than Historical Cost
Schedule of Available for sale Securities and Held to maturity Securities [Line Items]
Historical cost	81,482,000	398,172,000
Fair value of investments	$ 80,881,000	$ 395,416,000
Percent of the Corporation's available for sale and held to maturity portfolio	2.60%	15.20%
U.S. Government-Sponsored Mortgage-backed Securities
Schedule of Available for sale Securities and Held to maturity Securities [Line Items]
Unrealized losses on available for sale securities	$ 103,000	$ 1,404,000
Available-for-sale number of securities in unrealized loss positions \| instrument	5
Unrealized losses in held to maturity portfolios	$ 107,000	401,000
Held-to-maturity, number of securities in unrealized loss positions \| instrument	3
State and municipal securities
Schedule of Available for sale Securities and Held to maturity Securities [Line Items]
Unrealized losses on available for sale securities	$ 246,000	807,000
Available-for-sale number of securities in unrealized loss positions \| instrument	4
Unrealized losses in held to maturity portfolios	$ 32,000	107,000
Held-to-maturity, number of securities in unrealized loss positions \| instrument	2
U.S. Government-sponsored agency securities
Schedule of Available for sale Securities and Held to maturity Securities [Line Items]
Unrealized losses on available for sale securities	$ 0	0
Unrealized losses in held to maturity portfolios	$ 113,000	$ 37,000
Held-to-maturity, number of securities in unrealized loss positions \| instrument	2

Investment Securities - Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Available for Sale, Amortized Cost
Due in one year or less	$ 1,349	$ 1,134
Due after one through five years	5,545	5,031
Due after five through ten years	70,777	74,745
Due after ten years	1,097,451	817,161
Amortized Cost	1,175,122	898,071
Amortized Cost	1,807,389	1,740,420
Available for Sale, Fair Value
Due in one year or less	1,353	1,136
Due after one through five years	5,764	5,141
Due after five through ten years	75,223	76,920
Due after ten years	1,182,110	855,505
Fair Value	1,264,450	938,702
Total Investment Securities	1,919,119	1,790,025
Held to Maturity, Amortized Cost
Due in one year or less	9,712	9,920
Due after one through five years	22,241	45,197
Due after five through ten years	115,408	84,153
Due after ten years	505,153	231,964
Amortized Cost	652,514	371,234
Amortized Cost	1,227,668	806,038
Held to Maturity, Fair Value
Due in one year or less	9,755	10,105
Due after one through five years	23,190	45,654
Due after five through ten years	121,333	88,844
Due after ten years	533,079	241,639
Fair Value	687,357	386,242
Total Investment Securities	1,280,293	827,566
U.S. Government-sponsored mortgage-backed securities
Available for Sale, Amortized Cost
U.S. Government-sponsored mortgage-backed securities	632,267	842,349
Amortized Cost	632,267	842,349
Available for Sale, Fair Value
Without single maturity date	654,669	851,323
Total Investment Securities	654,669	851,323
Held to Maturity, Amortized Cost
Without single maturity date	575,154	434,804
Amortized Cost	575,154	434,804
Held to Maturity, Fair Value
Without single maturity date	592,936	441,324
Total Investment Securities	$ 592,936	$ 441,324

Investment Securities - Gross Gains on Sales and Redemptions of Available for Sale Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]
Gross gains	$ 11,895	$ 4,415	$ 4,269
Gross losses	$ 0	$ 0	$ 0

Loans and Allowance - Narrative (Details) $ in Thousands	3 Months Ended								12 Months Ended
Loans and Allowance - Narrative (Details) $ in Thousands	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2020 USD ($) loan	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Receivables [Abstract]
Loans held for sale	$ 3,966				$ 9,037				$ 3,966	$ 9,037
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of funded loans (over) \| loan									4,400
Interest income									$ 358,264	382,772	$ 342,501
Loans - allowance for loan losses	130,648				80,284				130,648	80,284	80,552	$ 75,032
Increase in allowance for loan losses									50,300
Net charge offs									8,300
Increase in net charge offs									5,200
Provision for loan losses	4,482	$ 12,544	$ 21,895	$ 19,752	500	$ 600	$ 500	$ 1,200	58,673	2,800	7,227
Increase in provision for loan losses									55,900
Loans	9,243,174				8,459,310				9,243,174	8,459,310
Loans acquired with deteriorated credit quality
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	6,161				13,309				6,161	13,309
PPP, CARES Act
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans net of deferred fees	667,100								667,100
Deferred fees	12,500								$ 12,500
Weighted-average deferred processing fee									3.09%
Interest income									$ 6,200
Deferred processing fee income									16,200
Commercial and consumer loan \| Loans acquired with deteriorated credit quality
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans - allowance for loan losses	557				124				557	124
Loans	1,300				2,800				1,300	2,800
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans - allowance for loan losses	22,815				14,569				22,815	14,569	14,322	$ 13,537
Provision for loan losses									8,573	273	$ 1,969
Loans	1,743,000				1,732,201				$ 1,743,000	$ 1,732,201
Percentage of troubled debt restructured loans									70.00%	100.00%
Mortgage loans for which formal foreclosure proceedings are in process	2,800				1,000				$ 2,800	$ 1,000
Residential \| Loans acquired with deteriorated credit quality
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 0				$ 1,715				$ 0	$ 1,715

Loans and Allowance - Composition of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 9,243,174	$ 8,459,310
Allowance for loan losses	(130,648)	(80,284)	$ (80,552)	$ (75,032)
Net Loans	9,112,526	8,379,026
Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,776,699	2,109,879
Agricultural land, production and other loans to farmers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	281,884	334,172
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	484,723	787,568
Commercial real estate, non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,220,949	1,902,692
Commercial real estate, owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	958,501	909,695
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,234,741	1,143,217
Allowance for loan losses	(22,815)	(14,569)	(14,322)	(13,537)
Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	508,259	588,984
Individuals' loans for household and other personal expenditures
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	129,479	135,989
Allowance for loan losses	(9,648)	(4,035)	$ (3,964)	$ (3,732)
Public finance and other commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 647,939	$ 547,114

Loans and Allowance - Changes in Allowance for Loan Losses by Loan Segment (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Allowance for loan losses:
Beginning balance				$ 80,284				$ 80,552	$ 80,284	$ 80,552	$ 75,032
Provision for losses	$ 4,482	$ 12,544	$ 21,895	19,752	$ 500	$ 600	$ 500	1,200	58,673	2,800	7,227
Recoveries on loans									2,176	3,553	6,276
Loans charged off									(10,485)	(6,621)	(7,983)
Ending balance	130,648				80,284				130,648	80,284	80,552
Commercial
Allowance for loan losses:
Beginning balance				32,902				32,657	32,902	32,657	30,420
Provision for losses									21,930	733	2,097
Recoveries on loans									819	1,244	2,456
Loans charged off									(8,536)	(1,732)	(2,316)
Ending balance	47,115				32,902				47,115	32,902	32,657
Commercial Real Estate
Allowance for loan losses:
Beginning balance				28,778				29,609	28,778	29,609	27,343
Provision for losses									22,174	1,555	2,482
Recoveries on loans									431	1,289	2,525
Loans charged off									(313)	(3,675)	(2,741)
Ending balance	51,070				28,778				51,070	28,778	29,609
Construction
Allowance for loan losses:
Beginning balance				4,035				3,964	4,035	3,964	3,732
Provision for losses									5,996	239	679
Recoveries on loans									260	401	302
Loans charged off									(643)	(569)	(749)
Ending balance	9,648				4,035				9,648	4,035	3,964
Residential
Allowance for loan losses:
Beginning balance				$ 14,569				$ 14,322	14,569	14,322	13,537
Provision for losses									8,573	273	1,969
Recoveries on loans									666	619	993
Loans charged off									(993)	(645)	(2,177)
Ending balance	$ 22,815				$ 14,569				$ 22,815	$ 14,569	$ 14,322

Loans and Allowance - Allowance for Credit Losses and Loan Portfolio by Loan Segment (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance balances - Individually evaluated for impairment	$ 12,901	$ 689
Allowance balances - Collectively evaluated for impairment	117,747	79,595
Total allowance for loan losses	130,648	80,284	$ 80,552	$ 75,032
Loan balances - Individually evaluated for impairment	56,156	11,709
Loan balances - Collectively evaluated for impairment	9,180,857	8,434,292
Loans	9,243,174	8,459,310
Loans acquired with deteriorated credit quality
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	6,161	13,309
Commercial
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance balances - Individually evaluated for impairment	223	0
Allowance balances - Collectively evaluated for impairment	46,892	32,902
Total allowance for loan losses	47,115	32,902	32,657	30,420
Loan balances - Individually evaluated for impairment	1,258	457
Loan balances - Collectively evaluated for impairment	3,505,863	2,748,681
Loans	3,507,698	2,750,854
Commercial \| Loans acquired with deteriorated credit quality
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	577	1,716
Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance balances - Individually evaluated for impairment	12,246	231
Allowance balances - Collectively evaluated for impairment	38,824	28,547
Total allowance for loan losses	51,070	28,778	29,609	27,343
Loan balances - Individually evaluated for impairment	51,605	8,728
Loan balances - Collectively evaluated for impairment	3,805,808	3,821,660
Loans	3,862,997	3,840,266
Commercial Real Estate \| Loans acquired with deteriorated credit quality
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	5,584	9,878
Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance balances - Individually evaluated for impairment	0	0
Allowance balances - Collectively evaluated for impairment	9,648	4,035
Total allowance for loan losses	9,648	4,035	3,964	3,732
Loan balances - Individually evaluated for impairment	2	4
Loan balances - Collectively evaluated for impairment	129,477	135,985
Loans	129,479	135,989
Construction \| Loans acquired with deteriorated credit quality
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0
Residential
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance balances - Individually evaluated for impairment	432	458
Allowance balances - Collectively evaluated for impairment	22,383	14,111
Total allowance for loan losses	22,815	14,569	$ 14,322	$ 13,537
Loan balances - Individually evaluated for impairment	3,291	2,520
Loan balances - Collectively evaluated for impairment	1,739,709	1,727,966
Loans	1,743,000	1,732,201
Residential \| Loans acquired with deteriorated credit quality
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	$ 0	$ 1,715

Loans and Allowance - Summary of Non-Accrual Loans by Loan Class (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 61,471	$ 15,949
Commercial and industrial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	2,329	1,255
Agricultural land, production and other loans to farmers
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	1,012	1,180
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	123	977
Commercial real estate, non-owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	46,316	3,351
Commercial real estate, owner occupied
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	3,040	2,659
Residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	6,517	5,062
Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	2,095	1,421
Individuals' loans for household and other personal expenditures
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-accrual loans	$ 39	$ 44

Loans and Allowance - Composition of Impaired Loans by Loan Class (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Unpaid Principal Balance
Impaired loans with no related allowance	$ 9,101	$ 9,955	$ 14,555
Impaired loans with related allowance	49,513	5,139	10,501
Total Impaired Loans	58,614	15,094	25,056
Recorded Investment
Impaired loans with no related allowance	7,813	7,352	11,594
Impaired loans with related allowance	48,343	4,357	10,431
Total Impaired Loans	56,156	11,709	22,025
Related Allowance	12,901	689	1,872
Average Recorded Investment
Impaired loans with no related allowance	8,113	7,924	15,824
Impaired loans with related allowance	49,003	4,405	10,448
Total Impaired Loans	57,116	12,329	26,272
Interest Income Recognized
Impaired loans with no related allowance	148	159	168
Impaired loans with related allowance	84	75	68
Total Impaired Loans	232	234	236
Commercial and industrial loans
Unpaid Principal Balance
Impaired loans with no related allowance	1,059	320	828
Impaired loans with related allowance	268
Recorded Investment
Impaired loans with no related allowance	991	320	806
Impaired loans with related allowance	268
Related Allowance	223
Average Recorded Investment
Impaired loans with no related allowance	991	320	833
Impaired loans with related allowance	267
Interest Income Recognized
Impaired loans with no related allowance	0	0	0
Impaired loans with related allowance	0
Agricultural land, production and other loans to farmers
Unpaid Principal Balance
Impaired loans with no related allowance		752	679
Impaired loans with related allowance	640	588
Recorded Investment
Impaired loans with no related allowance		381	679
Impaired loans with related allowance	562	585
Related Allowance	3	107
Average Recorded Investment
Impaired loans with no related allowance		542	1,213
Impaired loans with related allowance	589	585
Interest Income Recognized
Impaired loans with no related allowance		0	0
Impaired loans with related allowance	0	0
Construction
Unpaid Principal Balance
Impaired loans with no related allowance		1,206	1,352
Impaired loans with related allowance			7,978
Recorded Investment
Impaired loans with no related allowance		970	614
Impaired loans with related allowance			7,977
Related Allowance			1,429
Average Recorded Investment
Impaired loans with no related allowance		1,229	835
Impaired loans with related allowance			7,977
Interest Income Recognized
Impaired loans with no related allowance		0	0
Impaired loans with related allowance			0
Commercial real estate, non-owner occupied
Unpaid Principal Balance
Impaired loans with no related allowance	4,958	6,202	7,795
Impaired loans with related allowance	44,016
Recorded Investment
Impaired loans with no related allowance	4,694	5,299	6,891
Impaired loans with related allowance	43,715
Related Allowance	11,686
Average Recorded Investment
Impaired loans with no related allowance	4,850	5,399	10,239
Impaired loans with related allowance	44,119
Interest Income Recognized
Impaired loans with no related allowance	145	156	0
Impaired loans with related allowance	0
Commercial real estate, owner occupied
Unpaid Principal Balance
Impaired loans with no related allowance	2,125	1,382	3,381
Impaired loans with related allowance	2,061	2,060	171
Recorded Investment
Impaired loans with no related allowance	1,310	306	2,103
Impaired loans with related allowance	1,323	1,324	171
Related Allowance	557	124	6
Average Recorded Investment
Impaired loans with no related allowance	1,429	357	2,202
Impaired loans with related allowance	1,447	1,324	171
Interest Income Recognized
Impaired loans with no related allowance	0	0	165
Impaired loans with related allowance	0	0
Residential
Unpaid Principal Balance
Impaired loans with no related allowance	957	93	118
Impaired loans with related allowance	2,041	2,070	1,958
Recorded Investment
Impaired loans with no related allowance	816	76	100
Impaired loans with related allowance	2,014	2,044	1,907
Related Allowance	352	383	362
Average Recorded Investment
Impaired loans with no related allowance	840	77	101
Impaired loans with related allowance	2,108	2,083	1,915
Interest Income Recognized
Impaired loans with no related allowance	3	3	3
Impaired loans with related allowance	70	63	57
Home equity
Unpaid Principal Balance
Impaired loans with no related allowance			49
Impaired loans with related allowance	487	417	376
Recorded Investment
Impaired loans with no related allowance			48
Impaired loans with related allowance	461	400	358
Related Allowance	80	75	74
Average Recorded Investment
Impaired loans with no related allowance			48
Impaired loans with related allowance	473	409	365
Interest Income Recognized
Impaired loans with no related allowance			0
Impaired loans with related allowance	14	12	10
Individuals' loans for household and other personal expenditures
Unpaid Principal Balance
Impaired loans with no related allowance	2
Impaired loans with related allowance		4	18
Recorded Investment
Impaired loans with no related allowance	2
Impaired loans with related allowance		4	18
Related Allowance		0	1
Average Recorded Investment
Impaired loans with no related allowance	3
Impaired loans with related allowance		4	20
Interest Income Recognized
Impaired loans with no related allowance	$ 0
Impaired loans with related allowance		$ 0	1
Public finance and other commercial loans
Unpaid Principal Balance
Impaired loans with no related allowance			353
Recorded Investment
Impaired loans with no related allowance			353
Average Recorded Investment
Impaired loans with no related allowance			353
Interest Income Recognized
Impaired loans with no related allowance			$ 0

Loans and Allowance - Past Due Aging of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Past Due [Line Items]
Current	$ 9,170,399	$ 8,432,491
Total Past Due	72,775	26,819
Total	9,243,174	8,459,310
Past due 90+ days and still accruing		69
30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	19,638	15,586
60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	11,187	2,965
90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past Due	41,950	8,268
Past due 90+ days and still accruing	746
Commercial and industrial loans
Financing Receivable, Past Due [Line Items]
Current	2,761,473	2,105,757
Total Past Due	15,226	4,122
Total	2,776,699	2,109,879
Past due 90+ days and still accruing		4
Commercial and industrial loans \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	5,866	3,086
Commercial and industrial loans \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	6,571	154
Commercial and industrial loans \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past Due	2,789	882
Past due 90+ days and still accruing	594
Agricultural land, production and other loans to farmers
Financing Receivable, Past Due [Line Items]
Current	280,615	333,012
Total Past Due	1,269	1,160
Total	281,884	334,172
Past due 90+ days and still accruing		0
Agricultural land, production and other loans to farmers \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	146	46
Agricultural land, production and other loans to farmers \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	226	64
Agricultural land, production and other loans to farmers \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past Due	897	1,050
Past due 90+ days and still accruing	0
Construction
Financing Receivable, Past Due [Line Items]
Current	484,706	785,936
Total Past Due	17	1,632
Total	484,723	787,568
Past due 90+ days and still accruing		0
Construction \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	0	1,632
Construction \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	17	0
Construction \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past Due	0	0
Past due 90+ days and still accruing	0
Commercial real estate, non-owner occupied
Financing Receivable, Past Due [Line Items]
Current	2,184,681	1,899,190
Total Past Due	36,268	3,502
Total	2,220,949	1,902,692
Past due 90+ days and still accruing		0
Commercial real estate, non-owner occupied \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	2,525	1,348
Commercial real estate, non-owner occupied \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	2,109	544
Commercial real estate, non-owner occupied \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past Due	31,634	1,610
Past due 90+ days and still accruing	0
Commercial real estate, owner occupied
Financing Receivable, Past Due [Line Items]
Current	951,561	906,881
Total Past Due	6,940	2,814
Total	958,501	909,695
Past due 90+ days and still accruing		0
Commercial real estate, owner occupied \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	4,854	976
Commercial real estate, owner occupied \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	180	208
Commercial real estate, owner occupied \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past Due	1,906	1,630
Past due 90+ days and still accruing	0
Residential
Financing Receivable, Past Due [Line Items]
Current	1,226,779	1,134,650
Total Past Due	7,962	8,567
Total	1,234,741	1,143,217
Past due 90+ days and still accruing		22
Residential \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	3,269	4,976
Residential \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	1,429	1,279
Residential \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past Due	3,264	2,312
Past due 90+ days and still accruing	133
Home equity
Financing Receivable, Past Due [Line Items]
Current	503,596	584,506
Total Past Due	4,663	4,478
Total	508,259	588,984
Past due 90+ days and still accruing		42
Home equity \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	2,644	3,083
Home equity \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	559	611
Home equity \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past Due	1,460	784
Past due 90+ days and still accruing	19
Construction
Financing Receivable, Past Due [Line Items]
Current	129,049	135,445
Total Past Due	430	544
Total	129,479	135,989
Past due 90+ days and still accruing		1
Construction \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	334	439
Construction \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	96	105
Construction \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past Due	0	0
Past due 90+ days and still accruing	0
Public finance and other commercial loans
Financing Receivable, Past Due [Line Items]
Current	647,939	547,114
Total Past Due	0	0
Total	647,939	547,114
Past due 90+ days and still accruing		0
Public finance and other commercial loans \| 30-59 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	0	0
Public finance and other commercial loans \| 60-89 Days Past Due
Financing Receivable, Past Due [Line Items]
Past Due	0	0
Public finance and other commercial loans \| 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Past Due	0	$ 0
Past due 90+ days and still accruing	$ 0

Loans and Allowance - Summary of Troubled Debt Restructurings (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) loan	Dec. 31, 2019 USD ($) loan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Pre-Modification Recorded Balance	$ 4,413	$ 692
Post-Modification Recorded Balance	$ 4,473	$ 690
Number of Loans \| loan	49	13
Commercial and industrial loans
Financing Receivable, Troubled Debt Restructuring [Line Items]
Pre-Modification Recorded Balance	$ 654
Post-Modification Recorded Balance	$ 654
Number of Loans \| loan	3
Agricultural land, production and other loans to farmers
Financing Receivable, Troubled Debt Restructuring [Line Items]
Pre-Modification Recorded Balance	$ 458
Post-Modification Recorded Balance	$ 458
Number of Loans \| loan	1
Construction
Financing Receivable, Troubled Debt Restructuring [Line Items]
Pre-Modification Recorded Balance	$ 113
Post-Modification Recorded Balance	$ 123
Number of Loans \| loan	1
Commercial real estate, owner occupied
Financing Receivable, Troubled Debt Restructuring [Line Items]
Pre-Modification Recorded Balance	$ 107
Post-Modification Recorded Balance	$ 107
Number of Loans \| loan	1
Residential
Financing Receivable, Troubled Debt Restructuring [Line Items]
Pre-Modification Recorded Balance	$ 2,730	$ 636
Post-Modification Recorded Balance	$ 2,780	$ 629
Number of Loans \| loan	38	11
Home equity
Financing Receivable, Troubled Debt Restructuring [Line Items]
Pre-Modification Recorded Balance	$ 332	$ 56
Post-Modification Recorded Balance	$ 332	$ 61
Number of Loans \| loan	3	2
Individuals' loans for household and other personal expenditures
Financing Receivable, Troubled Debt Restructuring [Line Items]
Pre-Modification Recorded Balance	$ 19
Post-Modification Recorded Balance	$ 19
Number of Loans \| loan	2

Loans and Allowance - Subsequent Default (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) loan	Dec. 31, 2019 USD ($) loan
Financing Receivable, Impaired [Line Items]
Number of Loans \| loan	11	1
Recorded Balance \| $	$ 1,288	$ 37
Commercial and industrial loans
Financing Receivable, Impaired [Line Items]
Number of Loans \| loan	2
Recorded Balance \| $	$ 585
Residential
Financing Receivable, Impaired [Line Items]
Number of Loans \| loan	8	1
Recorded Balance \| $	$ 610	$ 37
Home equity
Financing Receivable, Impaired [Line Items]
Number of Loans \| loan	1
Recorded Balance \| $	$ 93

Accounting for Certain Loans Acquired in a Purchase - Narrative (Details) - Loans acquired with deteriorated credit quality - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding balance amount of loans acquired	$ 15,600	$ 25,300
Carrying amount of loans acquired	9,600	16,100
Loans acquired and accounted for under ASC 310-30, allowance amount	$ 557	$ 124

Accounting for Certain Loans Acquired in a Purchase - Accretable Yield or Income Expected to be Collected (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Beginning balance	$ 2,132	$ 2,143	$ 2,890
Additions	0	576	0
Accretion	(2,852)	(2,387)	(4,118)
Reclassification from nonaccretable	1,947	1,965	3,387
Disposals	(7)	(165)	(16)
Ending balance	$ 1,220	$ 2,132	$ 2,143

Accounting for Certain Loans Acquired in a Purchase - Contractually Required Payments (Details) - MBT - USD ($) $ in Thousands	Dec. 31, 2019	Sep. 01, 2019
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Contractually required payments receivable at acquisition date	$ 6,840	$ 6,840
Nonaccretable difference	2,733
Expected cash flows at acquisition date	4,107
Accretable difference	576
Basis in loans at acquisition date	$ 3,531	$ 3,531

Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Premises and Equipment [Line Items]
Total Cost	$ 316,548	$ 311,945
Accumulated Depreciation and Amortization	(205,486)	(198,890)
Net	111,062	113,055
Land
Premises and Equipment [Line Items]
Total Cost	25,619	25,227
Buildings and Leasehold Improvements
Premises and Equipment [Line Items]
Total Cost	163,588	162,391
Equipment
Premises and Equipment [Line Items]
Total Cost	$ 127,341	$ 124,327

Premises and Equipment - Narrative (Details) $ in Thousands	Sep. 01, 2019 USD ($)
MBT
Premises and Equipment [Line Items]
Premises and equipment acquired	$ 21,664

Goodwill - Narrative (Details) - USD ($)	3 Months Ended	12 Months Ended
Goodwill - Narrative (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Sep. 01, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Goodwill	$ 543,918,000	$ 543,918,000	$ 543,918,000		$ 445,355,000
Measurement period adjustment			$ 719,000
Goodwill impairment loss		$ 0
MBT
Business Acquisition [Line Items]
Goodwill				$ 98,563,000
Measurement period adjustment	$ 719,000

Goodwill - Rollforward (Details) $ in Thousands	12 Months Ended
Goodwill - Rollforward (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 445,355
Goodwill acquired	97,844
Measurement period adjustment	719
Ending balance	$ 543,918

Other Intangibles - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Sep. 01, 2019
Business Acquisition [Line Items]
Intangible asset amortization	$ 5,987	$ 5,994	$ 6,719
Minimum
Business Acquisition [Line Items]
Useful life of core deposit intangibles and other intangibles	2 years
Maximum
Business Acquisition [Line Items]
Useful life of core deposit intangibles and other intangibles	10 years
MBT
Business Acquisition [Line Items]
Core deposit intangible				$ 16,527

Other Intangibles - Schedule of Core Deposit and Other Intangibles (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 102,396	$ 85,869
Accumulated amortization	(73,421)	(67,434)
Total core deposit and other intangibles	28,975	34,962
Core deposit intangible acquired
Acquired Finite-Lived Intangible Assets [Line Items]
Intangibles acquired	$ 0	$ 16,527

Other Intangibles - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Amortization Expense
2021	$ 5,429
2022	5,027
2023	4,827
2024	4,241
2025	3,526
After 2025	5,925
Total other intangibles	$ 28,975	$ 34,962

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease assets	$ 18,247	$ 20,747
Total lease assets	18,247	20,747
Operating lease liabilities	20,058	21,421
Total Lease liabilities	$ 20,058	$ 21,421
Weighted average remaining lease term (years)
Operating leases	8 years	8 years 10 months 24 days
Weighted average discount rate
Operating leases	3.30%	3.40%
Operating Lease, Liability, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilities

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Lease Cost:
Operating lease cost	$ 3,724	$ 3,617
Short-term lease cost	247	204
Variable lease cost	842	948
Sublease income	(43)	(13)
Total lease cost	$ 4,770	$ 4,756

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Maturity of lease liabilities
2021	$ 3,542
2022	3,394
2023	2,992
2024	2,921
2025	2,687
2026 and after	7,716
Total lease payments	23,252
Less: Present value discount	3,194
Present value of lease liabilities	20,058	$ 21,421
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	3,629	3,422
ROU assets obtained in exchange for new operating lease liabilities	$ 1,601	$ 23,529	$ 0

Deposits - Schedule of Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Banking and Thrift1 [Abstract]
Demand deposits	$ 6,821,152	$ 5,250,568
Savings deposits	3,661,713	2,896,177
Certificates and other time deposits of $100,000 or more	346,194	736,843
Other certificates and time deposits	459,168	741,759
Brokered deposits	73,383	214,609
Total Deposits	$ 11,361,610	$ 9,839,956

Deposits - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Deposits - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Banking and Thrift1 [Abstract]
Cash amount that exceeded federally insured limits	$ 6,400.0	$ 5,100.0
Increase in demand accounts	1,600.0
Increase savings accounts	765.5
Decrease in certificates of deposit	673.2
Decrease brokered deposits	$ 141.2

Deposits - Schedule of Contractual Maturities of Time Deposits (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Certificates and Other Time Deposits
2021	$ 651,861
2022	167,919
2023	35,367
2024	13,474
2025	9,287
After 2025	837
Total	$ 878,745

Transfers Accounted for as Secured Borrowings (Details) - U.S. Government-sponsored mortgage-backed securities - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets Sold under Agreements to Repurchase [Line Items]
Collateral pledged for all repurchase agreements accounted for as secured borrowings	$ 177,102	$ 187,946
Overnight and Continuous
Assets Sold under Agreements to Repurchase [Line Items]
Collateral pledged for all repurchase agreements accounted for as secured borrowings	175,449	178,732
Up to 30 Days
Assets Sold under Agreements to Repurchase [Line Items]
Collateral pledged for all repurchase agreements accounted for as secured borrowings	0	0
30-90 Days
Assets Sold under Agreements to Repurchase [Line Items]
Collateral pledged for all repurchase agreements accounted for as secured borrowings	1,653	7,672
Greater Than 90 Days
Assets Sold under Agreements to Repurchase [Line Items]
Collateral pledged for all repurchase agreements accounted for as secured borrowings	$ 0	$ 1,542

Borrowings - Schedule of Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Federal funds purchased	$ 0	$ 55,000
Securities sold under repurchase agreements	177,102	187,946
Federal Home Loan Bank advances	389,430	351,072
Subordinated debentures and term loans	118,380	138,685
Total Borrowings	$ 684,912	$ 732,703

Borrowings - Narrative (Details)					3 Months Ended		12 Months Ended
Borrowings - Narrative (Details)	Mar. 16, 2020 USD ($)	Jul. 14, 2017 USD ($)	Aug. 10, 2015 USD ($)	Nov. 01, 2013 USD ($) investor	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Apr. 23, 2020 USD ($)	Sep. 15, 2012	Jul. 02, 2007 USD ($)	Mar. 31, 2006 USD ($)
Debt Instrument [Line Items]
Total available remaining borrowing capacity from FHLB					$ 723,300,000		$ 723,300,000
Putable advances with the FHLB					389,430,000	$ 351,072,000	389,430,000	$ 351,072,000
Debt face amount				$ 70,000,000
Repayment of borrowings							$ 621,548,000	643,169,000	$ 1,677,860,000
Private debt issuance, number of institutional investors \| investor				4
5.00% Senior Notes Due 2028
Debt Instrument [Line Items]
Redemption price (percent)							100.00%
5% Senior Notes Due 2028 and 6.75% Subordinated Notes due 2028
Debt Instrument [Line Items]
Debt term with fixed interest rate				10 years
Putable Advances
Debt Instrument [Line Items]
Putable advances with the FHLB					$ 125,000,000.0		$ 125,000,000.0
Minimum
Debt Instrument [Line Items]
Required value of assets pledged as collateral as a percentage to outstanding advances							145.00%
Interest rate, minimum (as a percent)					0.35%		0.35%
Maximum
Debt Instrument [Line Items]
Interest rate, minimum (as a percent)					2.62%		2.62%
Securities Sold Under Repurchase Agreements
Debt Instrument [Line Items]
Maximum amount of outstanding agreements							$ 197,900,000	191,600,000
Total of average agreements							180,700,000	136,300,000
Debt outstanding					$ 177,102,000		177,102,000
Subordinated Debentures and Term Loans
Debt Instrument [Line Items]
Debt outstanding					118,380,000	138,700,000	$ 118,380,000	138,700,000
Subordinated Debentures and Term Loans \| Grabill Capital Trust I
Debt Instrument [Line Items]
Debt face amount										$ 10,000,000.0
Subordinated Debenture \| 6.75% Subordinated Notes Due 2028
Debt Instrument [Line Items]
Debt face amount				$ 65,000,000
Interest rate on notes (as a percent)				6.75%
Redemption price (percent)							100.00%
Subordinated Debenture \| Three-Month LIBOR \| 6.75% Subordinated Notes Due 2028
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)							4.095%
Subordinated Debenture \| First Merchant Capital Trust II
Debt Instrument [Line Items]
Debt outstanding					$ 41,700,000	$ 51,700,000	$ 41,700,000	51,700,000
Debt face amount	$ 10,000,000.0											$ 56,700,000
Cancellation of debt, amount			$ 5,000,000
Gain from cancellation of debt			$ 1,300,000
Interest rate on notes (as a percent)	3.45%										6.495%
Interest rate during the period					1.78%	3.45%
Subordinated Debenture \| First Merchant Capital Trust II \| Three-Month LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)							1.56%
Subordinated Debenture \| Ameriana Capital Trust I
Debt Instrument [Line Items]
Debt face amount													$ 10,300,000
Basis spread on variable rate (as a percent)							1.50%
Interest rate during the period					1.72%	3.39%
Subordinated Debenture \| Grabill Capital Trust I
Debt Instrument [Line Items]
Debt outstanding						$ 10,300,000		$ 10,300,000
Debt face amount		$ 10,300,000								$ 10,000,000.0
Interest rate on notes (as a percent)						4.53%		4.53%		4.41%
Basis spread on variable rate (as a percent)		2.60%
Capital Securities \| First Merchant Capital Trust II
Debt Instrument [Line Items]
Repayment of borrowings	$ 10,000,000.0
Senior Notes \| 5.00% Senior Notes Due 2028
Debt Instrument [Line Items]
Debt face amount				$ 5,000,000
Interest rate on notes (as a percent)				5.00%
Senior Notes \| Three-Month LIBOR \| 5.00% Senior Notes Due 2028
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)							2.345%

Borrowings - Schedule of Maturities of Long Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Federal Funds Purchased
Maturities in Years Ending December 31:
2021	$ 0
2022	0
2023	0
2024	0
2025	0
After 2025	0
ASC 805 fair value adjustments at acquisition	0
Total	0
Securities Sold Under Repurchase Agreements
Maturities in Years Ending December 31:
2021	177,102
2022	0
2023	0
2024	0
2025	0
After 2025	0
ASC 805 fair value adjustments at acquisition	0
Total	177,102
Federal Home Loan Bank Advances
Maturities in Years Ending December 31:
2021	55,097
2022	75,097
2023	115,097
2024	10,097
2025	25,097
After 2025	108,945
ASC 805 fair value adjustments at acquisition	0
Total	389,430
Subordinated Debentures and Term Loans
Maturities in Years Ending December 31:
2021	0
2022	0
2023	0
2024	0
2025	0
After 2025	122,012
ASC 805 fair value adjustments at acquisition	(3,632)
Total	$ 118,380	$ 138,700

Derivative Instruments and Hedging Activities - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($) interest_rate_swap	Sep. 30, 2020 USD ($)	Dec. 31, 2019 USD ($) interest_rate_swap
Derivative [Line Items]
Termination value of derivatives in a net liability position	$ 77.0
Derivative collateral posted	75.8
Not Designated as Hedging Instruments
Derivative [Line Items]
Notional amount of interest rate derivatives	985.0		$ 692.3
Cash Flow Hedging
Derivative [Line Items]
Estimated amount to be transferred from OCI to earnings	$ 1.0
Cash Flow Hedging \| Interest Rate Swap
Derivative [Line Items]
Number of interest rate derivatives held \| interest_rate_swap	4		4
Notional amount of interest rate derivatives	$ 60.0		$ 46.0
Cash Flow Hedging \| Interest Rate Swap \| Federal Home Loan Bank Advances
Derivative [Line Items]
Notional amount of interest rate derivatives	10.0	$ 10.0
Cash Flow Hedging \| Interest Rate Swap \| Trust Preferred Debt
Derivative [Line Items]
Notional amount of interest rate derivatives	26.0
Cash Flow Hedging \| Interest Rate Swap \| Brokered Deposit
Derivative [Line Items]
Notional amount of interest rate derivatives	$ 24.0

Derivative Instruments and Hedging Activities - Fair Value of Derivative Financial Instruments and Their Classification on Balance Sheet (Details) - Interest rate contracts - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Derivatives Designated as Hedging Instruments \| Other Assets
Derivatives, Fair Value [Line Items]
Asset Derivatives	$ 0	$ 0
Derivatives Designated as Hedging Instruments \| Other Liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	2,018	1,444
Derivatives Not Designated as Hedging Instruments \| Other Assets
Derivatives, Fair Value [Line Items]
Asset Derivatives	74,335	27,855
Derivatives Not Designated as Hedging Instruments \| Other Liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	$ 74,335	$ 27,855

Derivative Instruments and Hedging Activities - Effect of Derivative Financial Instruments on Income Statement (Details) - Derivatives Designated as Hedging Instruments - Interest rate contracts - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Interest expense
Derivative [Line Items]
Amount of Loss Reclassified from Other Comprehensive Income into Income (Effective Portion)	$ (906)	$ (334)	$ (470)
Cash Flow Hedging
Derivative [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion)	$ (1,480)	$ (1,072)

Fair Values of Financial Instruments - Fair Value Measurements of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	$ 1,919,119	$ 1,790,025
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
Interest rate swap asset	0	0
Interest rate swap liability	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	1,916,640	1,787,132
Interest rate swap asset	74,335	27,855
Interest rate swap liability	76,353	29,299
Significant Unobservable Inputs (Level 3)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	2,479	2,893
Interest rate swap asset	0	0
Interest rate swap liability	0	0
Recurring \| Interest rate swap liability
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap liability	76,353	29,299
Recurring \| U.S. Government-sponsored agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	2,430	38,875
Recurring \| State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	1,257,885	899,796
Recurring \| U.S. Government-sponsored mortgage-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	654,669	851,323
Recurring \| Corporate obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	4,135	31
Recurring \| Interest rate swap asset
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap asset	74,335	27,855
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Interest rate swap liability
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap liability	0	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| U.S. Government-sponsored agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	0	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	0	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| U.S. Government-sponsored mortgage-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	0	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Corporate obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	0	0
Recurring \| Quoted Prices in Active Markets for Identical Assets (Level 1) \| Interest rate swap asset
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap asset	0	0
Recurring \| Significant Other Observable Inputs (Level 2) \| Interest rate swap liability
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap liability	76,353	29,299
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	2,430	38,875
Recurring \| Significant Other Observable Inputs (Level 2) \| State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	1,255,441	896,938
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	654,665	851,319
Recurring \| Significant Other Observable Inputs (Level 2) \| Corporate obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	4,104	0
Recurring \| Significant Other Observable Inputs (Level 2) \| Interest rate swap asset
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap asset	74,335	27,855
Recurring \| Significant Unobservable Inputs (Level 3) \| Interest rate swap liability
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap liability	0	0
Recurring \| Significant Unobservable Inputs (Level 3) \| U.S. Government-sponsored agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	0	0
Recurring \| Significant Unobservable Inputs (Level 3) \| State and municipal
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	2,444	2,858
Recurring \| Significant Unobservable Inputs (Level 3) \| U.S. Government-sponsored mortgage-backed securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	4	4
Recurring \| Significant Unobservable Inputs (Level 3) \| Corporate obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities available for sale	31	31
Recurring \| Significant Unobservable Inputs (Level 3) \| Interest rate swap asset
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Interest rate swap asset	$ 0	$ 0

Fair Values of Financial Instruments - Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements using Significant Unobservable Level 3 Inputs (Details) - Recurring - Available for Sale Securities - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Available for Sale Securities
Beginning Balance	$ 2,893	$ 3,328
Included in other comprehensive income	16	80
Principal payments	(430)	(515)
Ending balance	$ 2,479	$ 2,893

Fair Values of Financial Instruments - Transfer Between Levels 1, 2 and 3 and Reasons for Transfers (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Transfer between in or out of Level 3	$ 0	$ 0

Fair Values of Financial Instruments - Valuation Methodologies Used for Instruments Measured at Fair Value on Non-Recurring Basis (Details) - Non-recurring - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Impaired Loans (collateral dependent)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset fair value	$ 0	$ 0
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset fair value	0	0
Significant Other Observable Inputs (Level 2) \| Impaired Loans (collateral dependent)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset fair value	0	0
Significant Other Observable Inputs (Level 2) \| Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset fair value	0	0
Significant Unobservable Inputs (Level 3) \| Impaired Loans (collateral dependent)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset fair value	37,250	5,653
Significant Unobservable Inputs (Level 3) \| Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset fair value	544	194
Fair Value \| Impaired Loans (collateral dependent)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset fair value	37,250	5,653
Fair Value \| Other real estate owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Asset fair value	$ 544	$ 194

Fair Values of Financial Instruments - Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Other Than Goodwill (Details) - Significant Unobservable Inputs (Level 3) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Discounted cash flow \| State and municipal securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 2,444	$ 2,858
Discounted cash flow \| State and municipal securities \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Maturity Call Date	1 month	1 month
US Muni BQ curve	A-	A-
Discounted cash flow \| State and municipal securities \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Maturity Call Date	15 years	15 years
US Muni BQ curve	BBB-	BBB-
Discounted cash flow \| State and municipal securities \| Discount rate \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount rate	0.015	0.02
Discounted cash flow \| State and municipal securities \| Discount rate \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount rate	0.04	0.05
Discounted cash flow \| State and municipal securities \| Weighted-average coupon \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount rate	0.0388	0.04
Discounted cash flow \| Corporate obligations and U.S. Government-sponsored mortgage backed securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 35	$ 35
Discounted cash flow \| Corporate obligations and U.S. Government-sponsored mortgage backed securities \| Weighted-average coupon \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount rate	0	0
Discounted cash flow \| Corporate obligations and U.S. Government-sponsored mortgage backed securities \| Premium for illiquidity
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount rate	0.02	0.02
Collateral based measurements \| Impaired loans (collateral dependent)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 37,250	$ 5,653
Collateral based measurements \| Impaired loans (collateral dependent) \| Discount to reflect current market conditions and ultimate collectability \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount to reflect current market conditions and ultimate collectability	0	0
Collateral based measurements \| Impaired loans (collateral dependent) \| Discount to reflect current market conditions and ultimate collectability \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount to reflect current market conditions and ultimate collectability	0.10	0.10
Collateral based measurements \| Impaired loans (collateral dependent) \| Discount to reflect current market conditions and ultimate collectability \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount to reflect current market conditions and ultimate collectability	0.06	0.01
Appraisals \| Other real estate owned
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 544	$ 194
Appraisals \| Other real estate owned \| Discount to reflect current market conditions \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other real estate owned	0	0
Appraisals \| Other real estate owned \| Discount to reflect current market conditions \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other real estate owned	0.30	0.37
Appraisals \| Other real estate owned \| Discount to reflect current market conditions \| Weighted Average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other real estate owned	0.26	0.37

Fair Values of Financial Instruments - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets:
Investment securities available for sale	$ 1,919,119	$ 1,790,025
Investment securities held to maturity	1,280,293	827,566
Loans held for sale	3,966	9,037
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Cash and cash equivalents	192,896	177,201
Interest-bearing deposits	392,305	118,263
Investment securities available for sale	0	0
Investment securities held to maturity	0	0
Loans held for sale	0	0
Loans	0	0
Federal Home Loan Bank stock	0	0
Asset Derivatives	0	0
Interest receivable	0	0
Liabilities at December 31:
Deposits	10,482,865	8,146,745
Borrowings:
Federal funds purchased	0	0
Securities sold under repurchase agreements	0	0
Federal Home Loan Bank advances	0	0
Subordinated debentures and term loans	0	0
Interest rate swap liability	0	0
Interest payable	0	0
Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents	0	0
Interest-bearing deposits	0	0
Investment securities available for sale	1,916,640	1,787,132
Investment securities held to maturity	1,260,815	799,884
Loans held for sale	3,966	9,037
Loans	0	0
Federal Home Loan Bank stock	28,736	28,736
Asset Derivatives	74,335	27,855
Interest receivable	53,948	48,901
Liabilities at December 31:
Deposits	878,257	1,675,202
Borrowings:
Federal funds purchased	0	55,000
Securities sold under repurchase agreements	177,097	187,801
Federal Home Loan Bank advances	399,991	352,581
Subordinated debentures and term loans	108,439	123,571
Interest rate swap liability	76,353	29,299
Interest payable	3,287	6,754
Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	0	0
Interest-bearing deposits	0	0
Investment securities available for sale	2,479	2,893
Investment securities held to maturity	19,478	27,682
Loans held for sale	0	0
Loans	9,191,628	8,335,340
Federal Home Loan Bank stock	0	0
Asset Derivatives	0	0
Interest receivable	0	0
Liabilities at December 31:
Deposits	0	0
Borrowings:
Federal funds purchased	0	0
Securities sold under repurchase agreements	0	0
Federal Home Loan Bank advances	0	0
Subordinated debentures and term loans	0	0
Interest rate swap liability	0	0
Interest payable	0	0
Carrying Amount
Assets:
Cash and cash equivalents	192,896	177,201
Interest-bearing deposits	392,305	118,263
Investment securities available for sale	1,919,119	1,790,025
Investment securities held to maturity	1,227,668	806,038
Loans held for sale	3,966	9,037
Loans	9,112,526	8,379,026
Federal Home Loan Bank stock	28,736	28,736
Asset Derivatives	74,335	27,855
Interest receivable	53,948	48,901
Liabilities at December 31:
Deposits	11,361,610	9,839,956
Borrowings:
Federal funds purchased	0	55,000
Securities sold under repurchase agreements	177,102	187,946
Federal Home Loan Bank advances	389,430	351,072
Subordinated debentures and term loans	118,380	138,685
Interest rate swap liability	76,353	29,299
Interest payable	$ 3,287	$ 6,754

Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Loan commitments to extend credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Amounts of commitments	$ 3,443,514	$ 3,005,064
Standby letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Amounts of commitments	$ 29,555	$ 30,200

Accumulated Other Comprehensive Income (Loss) - Summary of Changes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	$ 1,786,437	$ 1,408,260	$ 1,303,463
Other comprehensive income before reclassifications	55,577	52,436
Amounts reclassified from accumulated other comprehensive income	(8,615)	(3,140)
Period change	46,962	49,296	(17,888)
Ending balance	1,875,645	1,786,437	1,408,260
Total
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	27,874	(21,422)	(2,908)
Period change	46,962	49,296	(17,888)
Ending balance	74,836	27,874	(21,422)
Unrealized Gains (Losses) on Securities Available for Sale
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	38,872	(6,343)
Other comprehensive income before reclassifications	58,513	48,703
Amounts reclassified from accumulated other comprehensive income	(9,397)	(3,488)
Period change	49,116	45,215
Ending balance	87,988	38,872	(6,343)
Unrealized Gains (Losses) on Cash Flow Hedges
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(1,141)	(559)
Other comprehensive income before reclassifications	(1,169)	(846)
Amounts reclassified from accumulated other comprehensive income	716	264
Period change	(453)	(582)
Ending balance	(1,594)	(1,141)	(559)
Unrealized Gains (Losses) on Defined Benefit Plans
Accumulated Other Comprehensive Income [Roll Forward]
Beginning balance	(9,857)	(14,520)
Other comprehensive income before reclassifications	(1,767)	4,579
Amounts reclassified from accumulated other comprehensive income	66	84
Period change	(1,701)	4,663
Ending balance	$ (11,558)	$ (9,857)	$ (14,520)

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

Accumulated Other Comprehensive Income (Loss) - Reclassifications (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items]
Net realized gains on sales of available for sale securities									$ 11,895	$ 4,415	$ 4,269
Income tax expense	$ (7,641)	$ (5,621)	$ (4,623)	$ (3,490)	$ (8,298)	$ (6,337)	$ (7,749)	$ (6,941)	(21,375)	(29,325)	(28,999)
Subordinated debentures and term loans									6,944	8,309	8,233
Salaries and employee benefits									155,937	144,037	131,704
Total reclassifications for the period, net of tax									8,615	3,140	3,018
Unrealized gains (losses) on available for sale securities
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period, net of tax									9,397	3,488	3,373
Unrealized gains (losses) on cash flow hedges
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period, net of tax									(716)	(264)	(371)
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) \| Unrealized gains (losses) on available for sale securities
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items]
Net realized gains on sales of available for sale securities									11,895	4,415	4,269
Income tax expense									(2,498)	(927)	(896)
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									190	70	99
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]
Subordinated debentures and term loans									(906)	(334)	(470)
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) \| Unrealized gains (losses) on defined benefit plans
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items]
Income tax expense									18	22	(4)
Salaries and employee benefits									(84)	(106)	20
Total reclassifications for the period, net of tax									$ (66)	$ (84)	$ 16

Regulatory Capital and Dividends - Schedule of Actual and Required Capital (Details) $ in Thousands	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Total Risk-Based Capital
Actual	$ 1,475,551	$ 1,400,617
Prompt Corrective Action Thresholds, Adequate Capital	1,079,015	1,028,930
Tier 1 Capital to Risk-weighted Assets, Amount
Actual	1,282,070	1,255,333
Prompt Corrective Action Thresholds, Adequate Capital	873,488	832,943
Common Equity Tier One Capital to Risk-weighted Assets, Amount
Actual	1,235,702	1,188,970
Prompt Corrective Action Thresholds, Adequate Capital	719,343	685,953
Tier I Capital to Average Assets, Amount
Actual	1,282,070	1,255,333
Prompt Corrective Action Thresholds, Adequate Capital	$ 536,123	$ 476,383
Risk Based Ratios
Total Capital to Risk-weighted Assets, Actual Ratio	0.1436	0.1429
Total Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio	0.1050	0.1050
Tier 1 Capital to Risk-weighted Assets, Actual Ratio	0.1248	0.1281
Tier I Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio	0.0850	0.0850
Common Equity Tier 1 Capital to Risk-weighted Assets, Actual Ratio	0.1202	0.1213
Common Equity Tier 1 to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio	0.0700	0.0700
Leverage Ratios
Tier 1 Capital to Average Assets	0.0957	0.1054
Tier I Capital to Average Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio	0.0400	0.0400
First Merchants Bank
Total Risk-Based Capital
Actual	$ 1,412,805	$ 1,267,649
Prompt Corrective Action Thresholds, Adequate Capital	1,082,430	1,033,926
Prompt Corrective Action Thresholds, Well Capitalized	1,030,886	984,691
Tier 1 Capital to Risk-weighted Assets, Amount
Actual	1,283,922	1,187,365
Prompt Corrective Action Thresholds, Adequate Capital	876,253	836,988
Prompt Corrective Action Thresholds, Well Capitalized	824,708	787,753
Common Equity Tier One Capital to Risk-weighted Assets, Amount
Actual	1,283,922	1,187,365
Prompt Corrective Action Thresholds, Adequate Capital	721,620	689,284
Prompt Corrective Action Thresholds, Well Capitalized	670,076	640,049
Tier I Capital to Average Assets, Amount
Actual	1,283,922	1,187,365
Prompt Corrective Action Thresholds, Adequate Capital	535,279	475,564
Prompt Corrective Action Thresholds, Well Capitalized	$ 669,098	$ 594,455
Risk Based Ratios
Total Capital to Risk-weighted Assets, Actual Ratio	0.1370	0.1287
Total Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio	0.1050	0.1050
Total Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Well Capitalized Ratio	0.1000	0.1000
Tier 1 Capital to Risk-weighted Assets, Actual Ratio	0.1245	0.1206
Tier I Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio	0.0850	0.0850
Tier I Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Well Capitalized Ratio	0.0800	0.0800
Common Equity Tier 1 Capital to Risk-weighted Assets, Actual Ratio	0.1245	0.1206
Common Equity Tier 1 to Risk-weighted Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio	0.0700	0.0700
Common equity Tier I Capital to Risk-weighted Assets, Prompt Corrective Action Thresholds, Well Capitalized Ratio	0.0650	0.0650
Leverage Ratios
Tier 1 Capital to Average Assets	0.0959	0.0999
Tier I Capital to Average Assets, Prompt Corrective Action Thresholds, Adequate Capital Ratio	0.0400	0.0400
Tier I Capital to Average Assets, Prompt Corrective Action Thresholds, Well Capitalized Ratio	0.0500	0.0500

Regulatory Capital and Dividends - Narrative (Details)		3 Months Ended	12 Months Ended
Regulatory Capital and Dividends - Narrative (Details)	Sep. 01, 2019 USD ($) shares	Mar. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) shares	Dec. 31, 2019 USD ($) shares	Dec. 31, 2018 USD ($)	Jan. 27, 2021 USD ($) shares	Sep. 03, 2019 USD ($) shares
Restructuring Cost and Reserve [Line Items]
Minimum capital conservation buffer			2.5
Dividends available			$ 207,182,000
Dividend reinvestment and stock purchase plan, stockholder's maximum amount of cash payments per quarter in purchase of common stock			5,000
Issuance of common stock related to acquisitions			$ 0	$ 229,926,000	$ 0
Subsequent event
Restructuring Cost and Reserve [Line Items]
Stock authorized to be repurchased (in shares) \| shares						3,333,000
Stock authorized to be repurchased (in shares)						$ 100,000,000
Stock Repurchase Program
Restructuring Cost and Reserve [Line Items]
Stock authorized to be repurchased (in shares) \| shares							3,000,000
Stock authorized to be repurchased (in shares)		$ 75,000,000.0					$ 75,000,000
Percent of outstanding shares							5.00%
Repurchases of common stock (in shares) \| shares		1,634,437
Stock repurchased during period		$ 55,900,000
Average price (in usd per share) \| $ / shares		$ 34.21
Stock Repurchase Program \| Subsequent event
Restructuring Cost and Reserve [Line Items]
Stock authorized to be repurchased (in shares) \| shares						3,333,000
Stock authorized to be repurchased (in shares)						$ 100,000,000
Percent of outstanding shares						6.00%
Common Stock
Restructuring Cost and Reserve [Line Items]
Number of shares of common stock	0.275
Stock issued as a part of acquisition (in shares) \| shares				6,383,806
Issuance of common stock related to acquisitions				$ 798,000
Repurchases of common stock (in shares) \| shares			1,634,437	516,016
MBT
Restructuring Cost and Reserve [Line Items]
Percentage of interest acquired	100.00%
MBT \| Common Stock
Restructuring Cost and Reserve [Line Items]
Number of shares of common stock	0.275
Stock issued as a part of acquisition (in shares) \| shares	6,400,000
Issuance of common stock related to acquisitions	$ 229,900,000
PPP
Restructuring Cost and Reserve [Line Items]
PPP loans at a zero risk weight			$ 667,100,000

Loan Servicing (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid balance of loans serviced for others	$ 635,224	$ 514,294	$ 533,386
Federal Home Loan Mortgage Corporation
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid balance of loans serviced for others	514,539	354,393	351,672
Fannie Mae
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid balance of loans serviced for others	69,072	82,922	92,552
Federal Home Loan Bank
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid balance of loans serviced for others	51,479	76,815	88,931
Chevy Chase Mortgage Company
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Unpaid balance of loans serviced for others	$ 134	$ 164	$ 231

Share-Based Compensation - Narrative (Details) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of average closing price to be paid by employees		85.00%
Share-based compensation		$ 4,600,000	$ 4,115,000	$ 3,592,000
Estimated pre-vesting forfeiture rate (as a percent)		0.40%
Aggregate intrinsic value of stock options exercised		$ 261,000	495,000
Stock options exercised		$ 115,000	144,000	1,598,000
RSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested period		3 years
Income tax expense at vesting		$ 394,000
Income tax benefit at vesting			$ 363,000	$ 448,000
Unrecognized compensation expense	$ 6,721,000	$ 6,721,000
Unrecognized compensation expense expected recognition period		1 year 8 months 23 days
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option term		10 years
Stock options vesting percentage		100.00%
Unrecognized compensation expense	0	$ 0
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	0	$ 0
Grant date fair value of ESPP options	$ 19,000
Minimum \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested period		1 year
Maximum \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested period		2 years

Share-Based Compensation - Components of Awards (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax compensation expense	$ 4,600	$ 4,115	$ 3,592
Income tax benefit	(581)	(1,276)	(1,276)
Total share-based compensation expense, net of income taxes	4,019	2,839	2,316
Stock and ESPP Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax compensation expense	96	101	109
Income tax benefit	(29)	(70)	(97)
Total share-based compensation expense, net of income taxes	67	31	12
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pre-tax compensation expense	4,504	4,014	3,483
Income tax benefit	(552)	(1,206)	(1,179)
Total share-based compensation expense, net of income taxes	$ 3,952	$ 2,808	$ 2,304

Share-Based Compensation - Stock Option Activity (Details)	12 Months Ended
	Dec. 31, 2020 USD ($) $ / shares shares
Number of Shares
Beginning balance (in shares) \| shares	59,350
Exercised (in shares) \| shares	(13,550)
Ending balance (in shares) \| shares	45,800
Vested and Expected to Vest, Number of Shares \| shares	45,800
Exercisable, Number of Shares \| shares	45,800
Weighted-Average Exercise Price
Beginning balance (in dollars per share) \| $ / shares	$ 13.51
Exercised (in dollars per share) \| $ / shares	8.48
Ending balance (in dollars per share) \| $ / shares	15.00
Vested and Expected to Vest, Weighted-Average Exercise Price (in dollars per share) \| $ / shares	15.00
Exercisable, Weighted-Average Exercise Price (in dollars per share) \| $ / shares	$ 15.00
Weighted Average Remaining Contractual Term
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 \| $	$ 1,026,578
Vested and Expected to Vest \| $	1,026,578
Exercisable \| $	$ 1,026,578

Share-Based Compensation - Unvested RSAs Outstanding (Details) - RSAs	12 Months Ended
	Dec. 31, 2020 $ / shares shares
Number of Shares
Unvested RSAs, Beginning Balance (in shares) \| shares	351,048
Granted (in shares) \| shares	140,577
Forfeited (in shares) \| shares	(5,450)
Vested (in shares) \| shares	(128,292)
Unvested RSAs, Ending Balance (in shares) \| shares	357,883
Weighted-Average Grant Date Fair Value
Unvested RSAs, Beginning Balance (in dollars per share) \| $ / shares	$ 40.67
Granted (in dollars per share) \| $ / shares	27.25
Forfeited (in dollars per share) \| $ / shares	37.81
Vested (in dollars per share) \| $ / shares	39.67
Unvested RSAs, Ending Balance (in dollars per share) \| $ / shares	$ 36.30

Pension and Other Post Retirement Benefit Plans - Narrative (Details) - USD ($)		12 Months Ended
	Mar. 01, 2005	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Percentage of employees covered by plan		10.00%
Minimum participant attained age	55 years
Requisite service period (at least)	10 years
Decrease in funded status		$ 625,000
Accumulated other comprehensive loss, net of tax		$ 1,700,000
Decrease in discount rate		0.90%
Discount rate		2.30%	3.20%	4.30%
Increase in liability		$ 6,800,000
Liability reduction for mortality table updates		700,000
Actual return on plan assets		7,925,000	$ 12,972,000
Increase from expected return		3,800,000
Accumulated benefit obligation		80,800,000	76,800,000
Net periodic pension benefit cost		(1,419,000)	(909,000)	$ (1,693,000)
Minimum required contribution in next fiscal year		$ 0
Requisite service period		1000 hours
Employer percentage contribution		2.00%
Vesting period		5 years
Expense recognized in the period		$ 5,100,000	4,600,000	5,100,000
Fair value of plan assets		88,512,000	85,121,000	76,736,000
Level 1
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		85,007,000	80,689,000
Level 2
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets		$ 3,505,000	4,432,000
MBT
Defined Benefit Plan Disclosure [Line Items]
Requisite service period (at least)		5 years
Defined benefit plan, benefit obligation		$ 3,500,000
Post retirement plan expense		$ 126,000	$ 43,000
Contribution for first 3%
Defined Benefit Plan Disclosure [Line Items]
Amount of discretionary contributions made by employer to defined contribution plan, percent		100.00%
Maximum annual contribution percentage per employee		3.00%
Contribution after first 3%
Defined Benefit Plan Disclosure [Line Items]
Amount of discretionary contributions made by employer to defined contribution plan, percent		50.00%
Maximum annual contribution percentage per employee		3.00%
Minimum \| MBT
Defined Benefit Plan Disclosure [Line Items]
Age of plan participants		55 years
Minimum \| Debt securities
Defined Benefit Plan Disclosure [Line Items]
Maturities of debt securities		15 days	15 days
Maximum \| MBT
Defined Benefit Plan Disclosure [Line Items]
Age of plan participants		65 years
Maximum \| Debt securities
Defined Benefit Plan Disclosure [Line Items]
Maturities of debt securities		6 years 8 months 8 days	7 years 8 months 1 day
Weighted Average \| Debt securities
Defined Benefit Plan Disclosure [Line Items]
Maturities of debt securities		3 years 7 months 24 days	4 years
Non-qualified plans
Defined Benefit Plan Disclosure [Line Items]
Net periodic pension benefit cost		$ 165,000	$ 192,000	$ 161,000

Pension and Other Post Retirement Benefit Plans - Schedule of Changes in Benefit Obligation, and Plan Assets, Funded Status of the Plan, Assets and Liabilities Recognized in the Balance Sheets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Change in Benefit Obligation:
Benefit obligation at beginning of year	$ 76,770	$ 73,193
Service cost	16	39	$ 8
Interest cost	2,343	2,975	2,816
Actuarial (gain) loss	6,957	4,007
Benefits paid	(5,300)	(5,145)
Net transfer in from MBT acquisition	0	1,701
Benefit obligation at end of year	80,786	76,770	73,193
Change in Plan Assets:
Fair value of plan assets at beginning of year	85,121	76,736
Actual return on plan assets	7,925	12,972
Employer contributions	766	558
Benefits paid	(5,300)	(5,145)
End of year	88,512	85,121	$ 76,736
Funded status at end of year	7,726	8,351
Assets and Liabilities Recognized in the Balance Sheets:
Deferred tax asset	3,970	3,278
Assets	12,681	13,291
Liabilities	$ 4,955	$ 4,940

Pension and Other Post Retirement Benefit Plans - Schedule of Accumulated Benefit Obligation in Excess of Plan Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Projected benefit obligation	$ 4,955	$ 4,940
Accumulated benefit obligation	4,955	4,940
Fair value of plan assets	$ 0	$ 0

Pension and Other Post Retirement Benefit Plans - Schedule of Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
Service cost	$ 16	$ 39	$ 8
Interest cost	2,343	2,975	2,816
Expected return on plan assets	(4,086)	(4,414)	(4,891)
Amortization of prior service cost	87	87	87
Amortization of net loss	221	404	287
Net periodic pension benefit cost	$ (1,419)	$ (909)	$ (1,693)

Pension and Other Post Retirement Benefit Plans - Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
Net periodic pension benefit cost	$ (1,419)	$ (909)	$ (1,693)
Net gain (loss)	(3,119)	4,552	(2,189)
Amortization of net loss	221	404	287
Amortization of prior service cost	87	87	87
Total recognized in other comprehensive income (loss)	(2,811)	5,043	(1,815)
Total recognized in net periodic pension benefit cost and other comprehensive income (loss)	$ (1,392)	$ 5,952	$ (122)

Pension and Other Post Retirement Benefit Plans - Schedule of Weighted Average Assumptions Used to Determine Benefit Obligation and Benefit Cost (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Weighted-average Assumptions Used to Determine Benefit Obligation:
Discount rate	2.30%	3.20%	4.30%
Weighted-average Assumptions Used to Determine Cost:
Discount rate	3.20%	4.30%	3.60%
Expected return on plan assets	5.00%	6.00%	6.00%

Pension and Other Post Retirement Benefit Plans - Schedule of Expected Future Benefit Payments (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Retirement Benefits [Abstract]
2021	$ 5,705
2022	5,697
2023	5,601
2024	5,370
2025	5,333
After 2025	23,744
Total	$ 51,450

Pension and Other Post Retirement Benefit Plans - Schedule of Plan Assets by Category (Details)	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Actual (as a percent)	100.00%	100.00%
Target (as a percent)	100.00%	100.00%
Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Actual (as a percent)	2.70%	3.00%
Target (as a percent)	3.00%	3.00%
Equity securities
Defined Benefit Plan Disclosure [Line Items]
Actual (as a percent)	53.00%	52.30%
Target (as a percent)	50.00%	50.00%
Debt securities
Defined Benefit Plan Disclosure [Line Items]
Actual (as a percent)	42.30%	42.30%
Target (as a percent)	45.00%	45.00%
Alternative investments
Defined Benefit Plan Disclosure [Line Items]
Actual (as a percent)	2.00%	2.40%
Target (as a percent)	2.00%	2.00%

Income Tax - Reconciliation of Federal Statutory to Actual Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of Federal Statutory to Actual Tax Expense:
Federal Statutory Income Tax at 21%									$ 35,695	$ 40,695	$ 39,509
Tax-exempt Interest Income									(13,273)	(10,124)	(8,347)
Stock Compensation									338	(459)	(622)
Earnings on Life Insurance									(1,079)	(953)	(868)
Tax Credits									(425)	(263)	(615)
CARES Act - NOL carryback rate differential									(1,178)	0	0
State Tax									1,122	600	(1,219)
Other									175	(171)	1,161
Income Tax Expense	$ 7,641	$ 5,621	$ 4,623	$ 3,490	$ 8,298	$ 6,337	$ 7,749	$ 6,941	$ 21,375	$ 29,325	$ 28,999
Effective Tax Rate									12.60%	15.10%	15.40%

Income Tax - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Currently Payable:
Federal									$ 28,463	$ 23,938	$ 23,633
State									2,647	422	1,842
Deferred:
Federal									(8,508)	4,726	6,723
State									(1,227)	239	(3,199)
Income Tax Expense	$ 7,641	$ 5,621	$ 4,623	$ 3,490	$ 8,298	$ 6,337	$ 7,749	$ 6,941	$ 21,375	$ 29,325	$ 28,999

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