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LOANS AND ALLOWANCE (Tables)
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Summary of Composition of Loan Portfolio by Loan Class
The following table illustrates the composition of the Corporation’s loan portfolio by loan class for the periods indicated:
September 30, 2022December 31, 2021
Commercial and industrial loans$3,330,529 $2,714,565 
Agricultural land, production and other loans to farmers221,954 246,442 
Real estate loans:
Construction828,923 523,066 
Commercial real estate, non-owner occupied2,299,272 2,135,459 
Commercial real estate, owner occupied1,268,567 986,720 
Residential1,990,668 1,159,127 
Home equity621,619 523,754 
Individuals' loans for household and other personal expenditures173,225 146,092 
Public finance and other commercial loans915,245 806,636 
Loans$11,650,002 $9,241,861 
Summary of Credit Quality of Loan Portfolio by Loan Class
The following tables summarize the risk grading of the Corporation’s loan portfolio by loan class and by year of origination for the years indicated. Consumer loans are not risk graded. For the purposes of this disclosure, the consumer loans are classified in the following manner: loans that are less than 30 days past due are Pass, loans 30-89 days past due are Special Mention and loans greater than 89 days past due are Substandard. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Commercial and industrial loan balances as of September 30, 2022 include PPP loans with an origination year of 2021 and 2020 of $11.1 million and $156,000, respectively. Commercial and industrial loan balances as of December 31, 2021 include PPP loans with an origination year of 2021 and 2020 of $100.3 million and $6.3 million, respectively.

September 30, 2022
Term Loans (amortized cost basis by origination year)Revolving loans amortizedRevolving loans converted
20222021202020192018Priorcost basisto termTotal
Commercial and industrial loans
Pass$878,457 $614,161 $186,559 $125,026 $66,915 $47,867 $1,230,085 $5,314 $3,154,384 
Special Mention1,521 15,221 11,756 5,954 1,329 2,527 26,744 155 65,207 
Substandard10,491 28,753 6,232 10,870 4,446 1,602 47,844 69 110,307 
Doubtful— 202 — — 370 — 59 — 631 
Total Commercial and industrial loans890,469 658,337 204,547 141,850 73,060 51,996 1,304,732 5,538 3,330,529 
Agricultural land, production and other loans to farmers
Pass34,381 39,191 37,456 17,772 4,587 32,159 54,567 — 220,113 
Special Mention286 — 107 — 201 362 — — 956 
Substandard183 — 496 — 179 27 — — 885 
Total Agricultural land, production and other loans to farmers34,850 39,191 38,059 17,772 4,967 32,548 54,567 — 221,954 
Real estate loans:
Construction
Pass294,576 298,393 174,152 20,314 878 4,146 18,111 — 810,570 
Special Mention10,278 5,596 — — — — — — 15,874 
Substandard14 — 2,446 — — 19 — — 2,479 
Total Construction304,868 303,989 176,598 20,314 878 4,165 18,111 — 828,923 
Commercial real estate, non-owner occupied
Pass377,307 604,997 597,682 164,320 124,987 212,121 18,382 8,088 2,107,884 
Special Mention42,890 4,567 54,691 18,904 11,577 17,152 10 — 149,791 
Substandard16,289 10,617 8,340 — 4,146 2,205 — — 41,597 
Total Commercial real estate, non-owner occupied436,486 620,181 660,713 183,224 140,710 231,478 18,392 8,088 2,299,272 
Commercial real estate, owner occupied
Pass211,858 327,263 356,155 125,517 68,189 100,242 36,897 — 1,226,121 
Special Mention2,301 9,957 1,261 3,418 1,339 3,883 1,322 — 23,481 
Substandard3,001 1,246 3,018 1,627 3,270 6,791 — — 18,953 
Doubtful— — — — — 12 — — 12 
Total Commercial real estate, owner occupied217,160 338,466 360,434 130,562 72,798 110,928 38,219 — 1,268,567 
Residential
Pass617,087 497,367 415,995 112,715 80,783 240,572 5,735 128 1,970,382 
Special Mention3,333 2,946 828 1,128 137 3,283 — 55 11,710 
Substandard736 1,641 2,157 1,018 1,609 1,260 155 — 8,576 
Total Residential621,156 501,954 418,980 114,861 82,529 245,115 5,890 183 1,990,668 
Home equity
Pass28,015 77,360 15,547 1,596 1,479 3,958 485,056 259 613,270 
Special Mention326 — — 46 39 13 3,032 — 3,456 
Substandard— 355 2,851 — 65 63 1,559 — 4,893 
Total Home Equity28,341 77,715 18,398 1,642 1,583 4,034 489,647 259 621,619 
Individuals' loans for household and other personal expenditures
Pass52,915 48,873 15,018 6,596 6,723 4,542 37,346 — 172,013 
Special Mention66 92 165 33 107 21 726 — 1,210 
Substandard— 2 — — — — — — 2 
Total Individuals' loans for household and other personal expenditures52,981 48,967 15,183 6,629 6,830 4,563 38,072 — 173,225 
Public finance and other commercial loans
Pass148,323 216,312 174,680 98,777 37,687 206,902 32,564 — 915,245 
Total Public finance and other commercial loans148,323 216,312 174,680 98,777 37,687 206,902 32,564 — 915,245 
Loans$2,734,634 $2,805,112 $2,067,592 $715,631 $421,042 $891,729 $2,000,194 $14,068 $11,650,002 
December 31, 2021
Term Loans (amortized cost basis by origination year)Revolving loans amortizedRevolving loans converted
20212020201920182017Priorcost basisto termTotal
Commercial and industrial loans
Pass$1,019,757 $362,372 $144,520 $65,165 $21,575 $30,420 $990,335 $— $2,634,144 
Special Mention10,559 11,088 190 730 1,930 1,825 15,026 — 41,348 
Substandard2,811 2,127 7,432 2,932 431 747 22,593 — 39,073 
Total Commercial and industrial loans1,033,127 375,587 152,142 68,827 23,936 32,992 1,027,954 — 2,714,565 
Agricultural land, production and other loans to farmers
Pass50,251 45,164 22,195 7,689 6,153 36,074 74,871 — 242,397 
Special Mention— 1,543 — — — 252 264 — 2,059 
Substandard524 506 108 371 — 27 450 — 1,986 
Total Agricultural land, production and other loans to farmers50,775 47,213 22,303 8,060 6,153 36,353 75,585 — 246,442 
Real estate loans:
Construction
Pass215,167 200,169 63,589 979 1,762 2,453 17,201 — 501,320 
Special Mention20,737 270 — — — 46 — — 21,053 
Substandard— 693 — — — — — — 693 
Total Construction235,904 201,132 63,589 979 1,762 2,499 17,201 — 523,066 
Commercial real estate, non-owner occupied
Pass589,296 688,406 227,332 111,971 103,400 126,837 26,779 — 1,874,021 
Special Mention68,279 149,480 — — — 1,723 — — 219,482 
Substandard19,314 14,912 178 1,118 6,156 278 — — 41,956 
Total Commercial real estate, non-owner occupied676,889 852,798 227,510 113,089 109,556 128,838 26,779 — 2,135,459 
Commercial real estate, owner occupied
Pass299,186 392,383 92,338 43,252 46,044 48,571 33,998 — 955,772 
Special Mention5,665 5,953 738 1,532 902 1,301 149 — 16,240 
Substandard7,025 5,763 — 53 113 1,754 — — 14,708 
Total Commercial real estate, owner occupied311,876 404,099 93,076 44,837 47,059 51,626 34,147 — 986,720 
Residential
Pass349,726 353,691 103,028 69,745 55,240 210,669 2,955 73 1,145,127 
Special Mention1,034 1,394 1,456 306 172 2,106 — — 6,468 
Substandard1,004 1,575 335 1,248 108 3,257 — 5 7,532 
Total Residential351,764 356,660 104,819 71,299 55,520 216,032 2,955 78 1,159,127 
Home equity
Pass63,845 17,556 1,977 2,127 1,250 3,432 427,437 194 517,818 
Special Mention— 85 48 — — 24 3,451 — 3,608 
Substandard520 — — 8 91 70 1,639 — 2,328 
Total Home Equity64,365 17,641 2,025 2,135 1,341 3,526 432,527 194 523,754 
Individuals' loans for household and other personal expenditures
Pass67,749 23,452 11,893 11,197 2,008 4,928 24,406 — 145,633 
Special Mention79 85 50 33 20 58 134 — 459 
Total Individuals' loans for household and other personal expenditures67,828 23,537 11,943 11,230 2,028 4,986 24,540 — 146,092 
Public finance and other commercial loans
Pass231,319 178,316 100,679 39,098 105,964 128,942 22,318 — 806,636 
Total Public finance and other commercial loans231,319 178,316 100,679 39,098 105,964 128,942 22,318 — 806,636 
Loans$3,023,847 $2,456,983 $778,086 $359,554 $353,319 $605,794 $1,664,006 $272 $9,241,861 
The tables below present the amortized cost basis of collateral dependent loans by loan class and their respective collateral type, which are individually evaluated to determine expected credit losses. The increase in collateral dependent loans of $46.2 million, mostly due to the commercial and industrial loan class, is primarily related to loans from the acquisition of Level One.
September 30, 2022
Commercial Real EstateResidential Real EstateOtherTotal Allowance on Collateral Dependent Loans
Commercial and industrial loans$— $— $43,740 $43,740 $13,040 
Real estate loans:
Construction— 2,447 — $2,447 1 
Commercial real estate, non-owner occupied27,705 — — $27,705 2,705 
Commercial real estate, owner occupied8,911 — — $8,911 916 
Residential— 2,521 — $2,521 262 
Home equity— 374 — $374 — 
Loans$36,616 $5,342 $43,740 $85,698 $16,924 


December 31, 2021
Commercial Real EstateResidential Real EstateOtherTotal Allowance on Collateral Dependent Loans
Commercial and industrial loans$— $— $8,075 $8,075 $2,672 
Agricultural land, production and other loans to farmers524 — 251 775 — 
Real estate loans:
Construction— 685 — 685 82 
Commercial real estate, non-owner occupied23,652 — — 23,652 5,510 
Commercial real estate, owner occupied1,044 — — 1,044 — 
Residential— 4,906 — 4,906 305 
Home equity— 394 — 394 64 
Loans$25,220 $5,985 $8,326 $39,531 $8,633 
Summary of Past Due Aging of Loan Portfolio by Loan Class The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, for the periods indicated:
September 30, 2022
Current30-59 Days
Past Due		60-89 Days
Past Due		90 Days or More Past DueTotalLoans > 90 Days or More Past Due
And Accruing
Commercial and industrial loans$3,324,800 $3,554 $652 $1,523 $3,330,529 $141 
Agricultural land, production and other loans to farmers221,577 320 — 57 221,954 — 
Real estate loans:
Construction828,353 — — 570 828,923 570 
Commercial real estate, non-owner occupied2,294,231 — 152 4,889 2,299,272 — 
Commercial real estate, owner occupied1,267,888 337 — 342 1,268,567 — 
Residential1,974,219 4,386 6,938 5,125 1,990,668 — 
Home equity613,749 2,689 766 4,415 621,619 53 
Individuals' loans for household and other personal expenditures172,012 415 796 2 173,225 — 
Public finance and other commercial loans915,245 — — — 915,245 — 
Loans$11,612,074 $11,701 $9,304 $16,923 $11,650,002 $764 


December 31, 2021
Current30-59 Days
Past Due		60-89 Days
Past Due		90 Days or More Past DueTotalLoans > 90 Days or More Past Due
And Accruing
Commercial and industrial loans$2,708,539 $2,602 $2,437 $987 $2,714,565 $675 
Agricultural land, production and other loans to farmers246,380 36 — 26 246,442 — 
Real estate loans:
Construction522,349 717 — — 523,066 — 
Commercial real estate, non-owner occupied2,124,853 3,327 — 7,279 2,135,459 — 
Commercial real estate, owner occupied985,785 643 — 292 986,720 — 
Residential1,148,294 3,979 4,255 2,599 1,159,127 — 
Home equity518,643 3,327 281 1,503 523,754 288 
Individuals' loans for household and other personal expenditures145,634 375 83 — 146,092 — 
Public finance and other commercial loans806,636 — — — 806,636 — 
Loans$9,207,113 $15,006 $7,056 $12,686 $9,241,861 $963 
Summary of Non-Accrual Loans by Loan class The following table summarizes the Corporation’s non-accrual loans by loan class for the periods indicated:
September 30, 2022December 31, 2021
Non-Accrual LoansNon-Accrual Loans with no Allowance for Credit LossesNon-Accrual LoansNon-Accrual Loans with no Allowance for Credit Losses
Commercial and industrial loans$2,945 $1,354 $7,598 $263 
Agricultural land, production and other loans to farmers57 — 631 524 
Real estate loans:
Construction— — 685 — 
Commercial real estate, non-owner occupied20,189 288 23,029 6,133 
Commercial real estate, owner occupied4,997 3,471 411 — 
Residential10,703 722 9,153 2,160 
Home equity4,607 — 1,552 — 
Individuals' loans for household and other personal expenditures10 — 3 — 
Loans$43,508 $5,835 $43,062 $9,080 
Summary of Troubled Debt Restructuring
The following tables summarize troubled debt restructures in the Corporation's loan portfolio that occurred during the three and nine months ended September 30, 2022 and 2021. There were no troubled debt restructures that occurred in the three months ended September 30, 2022.
Three Months Ended September 30, 2021
Pre- Modification Recorded BalanceTerm ModificationRate ModificationPost - Modification Recorded BalanceNumber of Loans
Real estate loans:
Construction$16 $— $16 $16 1
Commercial real estate, non owner occupied12,922 12,976 — 12,976 1
Total$12,938 $12,976 $16 $12,992 2 


Nine Months Ended September 30, 2022
Pre- Modification Recorded BalanceRate ModificationPost - Modification Recorded BalanceNumber of Loans
Real estate loans:
Residential$53 $56 $56 1
Total$53 $56 $56 1 


Nine Months Ended September 30, 2021
Pre- Modification Recorded BalanceTerm ModificationRate ModificationCombinationPost - Modification Recorded BalanceNumber of Loans
Commercial and industrial loans$348 $348 $— $— $348 2
Real estate loans:
Construction16 — 16 — 16 1
Commercial real estate, non owner occupied12,922 12,976 — — 12,976 1
Commercial real estate, owner occupied21 — — 21 21 1
Residential691 449 126 118 693 9
Total$13,998 $13,773 $142 $139 $14,054 14 
The following tables summarize troubled debt restructures that occurred during the twelve month ended September 30, 2021, 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. There were no loans that subsequently defaulted during the three and nine months ended September 30, 2022.
Three Months Ended September 30, 2021Nine Months Ended September 30, 2021
Number of LoansRecorded BalanceNumber of LoansRecorded Balance
Commercial and industrial loans2 $160 2 $160 
Real estate loans:    
Residential5 599 5 599 
Total7 $759 7 $759 
Summary of Purchased With Credit Deterioration The carrying amount of those loans is shown in the table below:
Level One
Purchase price of loans at acquisition$41,347 
CECL Day 1 PCD ACL 16,599 
Par value of acquired loans at acquisition$57,946 
Summary of Changes in Allowance for Loan Losses The following tables summarize changes in the allowance for credit losses by loan segment for the three and nine months ended September 30, 2022 and 2021:
Three Months Ended September 30, 2022
CommercialCommercial Real EstateConstructionConsumer & ResidentialTotal
Allowance for credit losses
Balances, June 30, 2022$94,228 $55,328 $27,401 $49,318 $226,275 
Provision for credit losses10,142 (7,054)186 (3,274)— 
Recoveries on loans81 188 824 222 1,315 
Loans charged off(306)(1)— (581)(888)
Balances, September 30, 2022$104,145 $48,461 $28,411 $45,685 $226,702 

Nine Months Ended September 30, 2022
CommercialCommercial Real EstateConstructionConsumer & ResidentialTotal
Allowance for credit losses
Balances, December 31, 2021$69,935 $60,665 $20,206 $44,591 $195,397 
Provision for credit losses18,518 (21,697)5,862 (2,683)— 
CECL Day 1 non-PCD provision for credit losses2,957 5,539 871 4,588 13,955 
CECL Day 1 PCD ACL12,970 2,981 648 — 16,599 
Recoveries on loans789 1,096 824 827 3,536 
Loans charged off(1,024)(123)— (1,638)(2,785)
Balances, September 30, 2022$104,145 $48,461 $28,411 $45,685 $226,702 

Three Months Ended September 30, 2021
CommercialCommercial Real EstateConstructionConsumer & ResidentialTotal
Allowance for credit losses
Balances, June 30, 2021$63,681 $72,701 $17,077 $46,316 $199,775 
Provision for credit losses3,496 (3,850)567 (213)— 
Recoveries on loans204 370 — 261 835 
Loans charged off(137)(115)(4)(382)(638)
Balances, September 30, 2021$67,244 $69,106 $17,640 $45,982 $199,972 

Nine Months Ended September 30, 2021
CommercialCommercial Real EstateConstructionConsumerResidentialConsumer & ResidentialTotal
Allowance for credit losses
Balances, December 31, 2020$47,115 $51,070 $— $9,648 $22,815 $— $130,648 
Credit risk reclassifications— (10,284)10,284 (9,648)(22,815)32,463 — 
Balances, December 31, 2020 after reclassifications47,115 40,786 10,284 — — 32,463 130,648 
Impact of adopting ASC 32620,024 34,925 8,805 — — 10,301 74,055 
Balances, January 1, 2021 Post-ASC 326 adoption67,139 75,711 19,089 — — 42,764 204,703 
Provision for credit losses666 (2,709)(1,444)— — 3,487 — 
Recoveries on loans544 567 1 — — 829 1,941 
Loans charged off(1,105)(4,463)(6)— — (1,098)(6,672)
Balances, September 30, 2021$67,244 $69,106 $17,640 $— $— $45,982 $199,972 
Summary of Financial Instruments with Off-balance Sheet Risk
Financial instruments with off-balance sheet risk were as follows:
September 30, 2022December 31, 2021
Amounts of commitments:
Loan commitments to extend credit$4,764,847 $3,917,215 
Standby letters of credit$43,239 $34,613 
Summary of Allowance for Credit Losses, Off-balance Sheet
The following table details activity in the allowance for credit losses on off-balance sheet commitments:
Three Months Ended
September 30, 2022
Balances, June 30, 2022$20,500 
CECL Day 1 unfunded commitments provision for credit losses2,800 
Balances, September 30, 2022$23,300