

	June 30, 2020			December 31, 2019
Real estate loans:
Commercial	$	3,593.8		$	3,487.8
Construction loans:
Land acquisition & development	285.3			302.1
Residential	246.2			244.1
Commercial	459.8			431.5
Total construction loans	991.3			977.7
Residential	1,287.6			1,246.1
Agricultural	224.2			226.6
Total real estate loans	6,096.9			5,938.2
Consumer loans:
Indirect	801.9			784.6
Direct and advance lines	169.3			179.0
Credit card	70.6			81.6
Total consumer loans	1,041.8			1,045.2
Commercial	2,648.6			1,673.7
Agricultural	282.8			279.1
Other, including overdrafts	3.7			—
Loans held for investment	10,073.8			8,936.2
Deferred loan fees and costs	(41.3		)	(5.5		)
Loans held for investment. net of deferred fees and costs	10,032.5			8,930.7
Allowance for credit losses	(146.1		)	(73.0		)
Net loans held for investment	$	9,886.4		$	8,857.7



Three Months Ended June 30, 2020	Beginning Balance		Provision for Credit Loss Expense			Loans Charged-Off			Recoveries Collected		Ending Balance
Allowance for credit losses⁽¹⁾
Real estate:
Commercial real estate:
Non-owner occupied	$	15.7	$	7.9		$	—		$	—	$	23.6
Owner occupied	15.7		3.4			(0.1		)	0.1		19.1
Multi-family	8.1		0.4			—			—		8.5
Total commercial real estate	39.5		11.7			(0.1		)	0.1		51.2
Construction:
Land acquisition & development	1.4		0.1			—			—		1.5
Residential construction	1.1		0.2			—			—		1.3
Commercial construction	6.1		0.2			—			—		6.3
Total construction	8.6		0.5			—			—		9.1
Residential real estate:
Residential 1-4 family	12.9		(2.7		)	—			0.1		10.3
Home equity and HELOC	1.4		—			—			0.1		1.5
Total residential real estate	14.3		(2.7		)	—			0.2		11.8
Agricultural real estate	2.6		0.5			—			—		3.1
Total real estate	65.0		10.0			(0.1		)	0.3		75.2
Consumer:
Indirect	16.7		0.5			(1.2		)	0.4		16.4
Direct and advance lines	5.5		0.3			(1.0		)	0.3		5.1
Credit card	2.6		—			(0.8		)	0.2		2.0
Total consumer	24.8		0.8			(3.0		)	0.9		23.5
Commercial:
Commercial and floor plans	33.5		7.7			(0.6		)	0.4		41.0
Commercial purpose secured by 1-4 family	4.4		0.6			—			0.1		5.1
Credit card	0.3		0.3			(0.3		)	0.1		0.4
Total commercial	38.2		8.6			(0.9		)	0.6		46.5
Agricultural:
Agricultural	1.1		(0.1		)	(0.1		)	—		0.9
Total agricultural	1.1		(0.1		)	(0.1		)	—		0.9
Total allowance for credit losses	$	129.1	$	19.3		$	(4.1	)	$	1.8	$	146.1

⁽¹⁾ Amounts presented above are exclusive of the allowance for credit losses related to unfunded commitments which are included in “Note 12 - Financial Instruments with Off-Balance Sheet Risk” included in this report.



Six Months Ended June 30, 2020	Beginning Balance		Initial Impact of Adopting ASC 326			Provision for Credit Loss Expense			Loans Charged-Off			Recoveries Collected		Ending Balance
Allowance for credit losses⁽¹⁾
Real estate:
Commercial real estate:
Non-owner occupied	$	8.8	$	4.9		$	9.9		$	—		$	—	$	23.6
Owner occupied	10.0		3.5			5.6			(0.1		)	0.1		19.1
Multi-family	0.7		6.9			0.9			—			—		8.5
Total commercial real estate	19.5		15.3			16.4			(0.1		)	0.1		51.2
Construction:
Land acquisition & development	1.9		(0.1		)	0.2			(0.5		)	—		1.5
Residential construction	1.5		(0.9		)	0.7			—			—		1.3
Commercial construction	2.7		1.3			2.3			—			—		6.3
Total construction	6.1		0.3			3.2			(0.5		)	—		9.1
Residential real estate:
Residential 1-4 family	1.8		10.6			(2.2		)	—			0.1		10.3
Home equity and HELOC	1.0		0.5			(0.1		)	—			0.1		1.5
Total residential real estate	2.8		11.1			(2.3		)	—			0.2		11.8
Agricultural real estate	0.5		1.8			0.8			—			—		3.1
Total real estate	28.9		28.5			18.1			(0.6		)	0.3		75.2
Consumer:
Indirect	4.5		8.8			4.4			(2.4		)	1.1		16.4
Direct and advance lines	2.9		3.0			0.7			(2.0		)	0.5		5.1
Credit card	2.5		0.3			0.4			(1.6		)	0.4		2.0
Total consumer	9.9		12.1			5.5			(6.0		)	2.0		23.5
Commercial:
Commercial and floor plans	25.5		(5.1		)	21.2			(1.4		)	0.8		41.0
Commercial purpose secured by 1-4 family	5.9		(3.8		)	3.0			(0.1		)	0.1		5.1
Credit card	1.2		(1.1		)	0.7			(0.5		)	0.1		0.4
Total commercial	32.6		(10.0		)	24.9			(2.0		)	1.0		46.5
Agricultural:
Agricultural	1.6		(0.6		)	—			(0.1		)	—		0.9
Total agricultural	1.6		(0.6		)	—			(0.1		)	—		0.9
Total allowance for credit losses	$	73.0	$	30.0		$	48.5		$	(8.7	)	$	3.3	$	146.1

⁽¹⁾ Amounts presented above are exclusive of the allowance for credit losses related to unfunded commitments which are included in “Note 12 - Financial Instruments with Off-Balance Sheet Risk” included in this report.

A collateral dependent financial loan relies solely on the operation or sale of the collateral for repayment. In evaluating the overall risk associated with a loan, the Company considers character, overall financial condition and resources, and payment record of the borrower; the prospects for support from any financially responsible guarantors; and the nature and degree of protection provided by the cash flow and value of any underlying collateral. The loan may become collateral dependent where the borrower is experiencing financial difficulty and as sources of repayment become inadequate over time and that repayment is expected to be provided substantially through the operation or sale of the collateral. The following tables present the amortized cost basis of collateral dependent loans by class of loans as of June 30, 2020. The comparable period is not presented because the collateral dependent type loans classification did not exist under prior GAAP. Under historical guidance, the recorded investment of impaired loans and the related specific reserve was $64.7 million and $3.6 million, respectively, as of December 31, 2019.



							Total Loans
	30 - 59		60 - 89		> 90		30 or More
	Days		Days		Days		Days		Current		Non-accrual		Total
As of June 30, 2020	Past Due		Past Due		Past Due		Past Due		Loans		Loans ⁽¹⁾		Loans
Real estate
Commercial	$	5.1	$	1.2	$	0.8	$	7.1	$	3,573.7	$	13.0	$	3,593.8
Construction:
Land acquisition & development	15.8		0.4		0.3		16.5		268.1		0.7		285.3
Residential	4.7		0.6		0.5		5.8		240.4		—		246.2
Commercial	—		—		—		—		459.3		0.5		459.8
Total construction loans	20.5		1.0		0.8		22.3		967.8		1.2		991.3
Residential	4.6		3.3		0.3		8.2		1,275.4		4.0		1,287.6
Agricultural	—		—		1.0		1.0		215.8		7.4		224.2
Total real estate loans	30.2		5.5		2.9		38.6		6,032.7		25.6		6,096.9
Consumer:
Indirect consumer	3.6		1.1		0.2		4.9		795.0		2.0		801.9
Other consumer	0.5		0.2		0.2		0.9		167.7		0.7		169.3
Credit card	0.6		0.3		0.6		1.5		69.1		—		70.6
Total consumer loans	4.7		1.6		1.0		7.3		1,031.8		2.7		1,041.8
Commercial	7.1		5.6		3.1		15.8		2,614.3		18.5		2,648.6
Agricultural	1.5		0.6		0.7		2.8		276.9		3.1		282.8
Other, including overdrafts	—		—		—		—		3.7		—		3.7
Loans held for investment	$	43.5	$	13.3	$	7.7	$	64.5	$	9,959.4	$	49.9	$	10,073.8



							Total Loans
	30 - 59		60 - 89		> 90		30 or More
	Days		Days		Days		Days		Current		Non-accrual		Total
As of December 31, 2019	Past Due		Past Due		Past Due		Past Due		Loans		Loans⁽¹⁾		Loans
Real estate
Commercial	$	5.5	$	1.1	$	0.6	$	7.2	$	3,467.6	$	13.0	$	3,487.8
Construction:
Land acquisition & development	0.7		0.8		0.3		1.8		298.9		1.4		302.1
Residential	1.5		0.8		—		2.3		241.8		—		244.1
Commercial	—		—		—		—		431.0		0.5		431.5
Total construction loans	2.2		1.6		0.3		4.1		971.7		1.9		977.7
Residential	3.8		1.4		1.1		6.3		1,235.2		4.6		1,246.1
Agricultural	0.8		0.5		—		1.3		220.1		5.2		226.6
Total real estate loans	12.3		4.6		2.0		18.9		5,894.6		24.7		5,938.2
Consumer:
Indirect consumer	7.6		1.9		0.5		10.0		773.0		1.6		784.6
Other consumer	1.2		0.5		0.1		1.8		176.7		0.5		179.0
Credit card	0.8		0.5		0.8		2.1		79.5		—		81.6
Total consumer loans	9.6		2.9		1.4		13.9		1,029.2		2.1		1,045.2
Commercial	4.8		2.6		2.3		9.7		1,650.3		13.7		1,673.7
Agricultural	0.9		0.1		—		1.0		275.7		2.4		279.1
Other, including overdrafts	—		—		—		—		—		—		—
Loans held for investment	$	27.6	$	10.2	$	5.7	$	43.5	$	8,849.8	$	42.9	$	8,936.2

Modifications of performing loans are made in the ordinary course of business and are completed on a case-by-case basis as negotiated with the borrower in connection with the ongoing loan collection processes. Loan modifications typically include interest rate changes, interest only periods of less than twelve months, short-term payment deferrals and extension of amortization periods to provide payment relief. A loan modification is considered a troubled debt restructuring if the borrower is experiencing financial difficulties and the Company, for economic or legal reasons, grants a concession to the borrower that it would not otherwise consider. Certain troubled debt restructurings are on non-accrual status at the time of restructuring and may be returned to accrual status if the borrower has sustained repayment performance in accordance with the restructuring agreement for a period of at least six months and management is reasonably assured of the borrower’s future performance. If the troubled debt restructuring meets these performance criteria, and the interest rate granted at the modification is equal to or greater than the rate that the Company was willing to accept at the time of the restructuring for a new loan with comparable risk, then the loan will return to performing status and the accrual of interest will resume. Any such loan will continue to be individually evaluated for credit deterioration and disclosed as collateral dependent loans.

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020 in response to the recent outbreak of a new strain of coronavirus (also known as, and hereinafter referred to as “COVID-19”). Key provisions of the CARES Act include one-time payments to individuals, strengthened unemployment insurance, additional health-care funding, temporary amendments to the Internal Revenue Code and loans and grants to certain businesses. The CARES Act provides all financial institutions with the option to elect either or both of the following beginning March 1, 2020 and ending the earlier of December 31, 2020 or the date that is 60 days after the termination of the national emergency: (1) to suspend the requirements under GAAP for loan modifications related to the COVID–19 pandemic that would otherwise be categorized as a TDR; and/or (2) to suspend any determination of a loan modified as being a TDR as a result of the effects of the COVID–19 pandemic, including impairment for accounting purposes. If a bank elects a suspension noted above, the suspension (a) will be effective for the term of the loan modification, but solely with respect to any modification, including a forbearance arrangement, an interest rate modification, a repayment plan, and any other similar arrangement that defers or delays the payment of principal or interest, occurring for a loan that was not more than 30 days past due as of December 31, 2019; and (b) will not apply to any adverse impact on the credit of a borrower that is not related to the COVID–19 pandemic. The Company has elected to apply these provisions at the individual loan level.

The Company renegotiated loans in troubled debt restructurings in the amount of $22.5 million as of June 30, 2020, of which $19.1 million were included in non-accrual loans and $3.4 million were on accrual status. The Company allocated $5.8 million of allowance for credit losses to those loans. The Company had no material commitments to lend additional funds to borrowers whose existing loans have been renegotiated or are classified as non-accrual.

The Company renegotiated loans in troubled debt restructurings in the amount of $24.9 million as of December 31, 2019, of which $19.4 million were included in non-accrual loans and $5.5 million were on accrual status. The Company allocated $0.3 million of allowance for credit losses to those loans. The Company had no material commitments to lend additional funds to borrowers whose existing loans have been renegotiated or are classified as non-accrual.

For troubled debt restructurings that were on non-accrual status or otherwise deemed collateral dependent before the modification, a specific reserve may already be recorded. In periods subsequent to modification, the Company continues to evaluate all troubled debt restructurings for possible credit deterioration and recognizes credit loss through the allowance. Additionally, these loans continue to work their way through the credit cycle through charge-off, pay-off, or foreclosure. Financial effects of modifications of troubled debt restructurings may include principal loan forgiveness or other charge-offs directly related to the restructuring. The Company had no charge-offs directly related to modifying troubled debt restructurings during the three and six months ended June 30, 2020 or 2019.

The terms of certain other loans were modified during the quarter ended June 30, 2020 that did not meet the definition of a troubled debt restructuring. These loans have a total recorded investment as of June 30, 2020 of $84.5 million. The modification of these loans involved either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant.

As part of the on-going and continuous monitoring of the credit quality of the Company’s loan portfolio, management tracks internally assigned risk classifications of loans based on relevant information about the ability of borrowers to service their debt including, among other factors, current financial information, historical payment experience, credit documentation, public information, and current economic trends. The Company analyzes loans individually to classify the credit risk of the loans. This analysis generally includes loans with an outstanding balance greater than $1.0 million, which are generally considered non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed no less than on an annual basis, dependent upon the size of exposure and the financial reporting frequency to which the borrower is contractually obligated. Homogeneous loans, including small business loans are typically managed by payment performance. The Company risk rates its loans internally in accordance with a Uniform Classification System developed jointly by the various bank regulatory agencies to internally risk rate loans. The Uniform Classification System defines three broad categories of criticized assets, which the Company uses as credit quality indicators in addition to the 6 Pass ratings in its 10-point rating scale:

Substandard — includes loans that are inadequately protected by the current net worth and paying capacity of the borrower which have a well defined weakness or weaknesses that jeopardize the liquidation of the debt. Although the primary source of repayment for a substandard loan may not currently be sufficient, collateral or other sources of repayment are sufficient to satisfy the debt. Continuance of a substandard loan is not warranted unless positive steps are taken to improve the worthiness of the credit.



	June 30, 2020
	Term Loans Amortized Cost Basis by Origination Year
Risk by Collateral	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial real estate non-owner occupied:
Pass	$	257.6	$	326.4	$	224.7	$	120.7	$	169.4	$	385.0	$	20.0	$	1,503.8
Special mention	—		3.2		1.3		0.1		0.5		15.4		—		20.5
Substandard	15.6		2.8		0.4		1.3		1.3		14.6		—		36.0
Doubtful	—		—		0.2		—		—		—		—		0.2
Total	$	273.2	$	332.4	$	226.6	$	122.1	$	171.2	$	415.0	$	20.0	$	1,560.5

Commercial real estate owner occupied:
Pass	$	219.9	$	333.3	$	232.7	$	160.3	$	178.5	$	445.1	$	15.5	$	1,585.3
Special mention	2.9		7.1		7.5		0.9		9.5		13.9		0.3		42.1
Substandard	6.1		7.2		9.7		5.6		18.7		18.6		0.5		66.4
Doubtful	0.2		—		0.2		0.1		0.4		0.1		—		1.0
Total	$	229.1	$	347.6	$	250.1	$	166.9	$	207.1	$	477.7	$	16.3	$	1,694.8

Land, acquisition and development:
Pass	$	60.2	$	83.4	$	50.3	$	36.5	$	11.1	$	32.5	$	5.3	$	279.3
Special mention	0.5		0.1		0.1		1.0		—		1.2		0.2		3.1
Substandard	0.3		0.1		1.2		0.6		—		0.2		0.4		2.8
Doubtful	—		—		—		—		—		0.1		—		0.1
Total	$	61.0	$	83.6	$	51.6	$	38.1	$	11.1	$	34.0	$	5.9	$	285.3

Residential construction:
Pass	$	52.5	$	99.5	$	26.0	$	6.4	$	0.3	$	0.3	$	59.7	$	244.7
Special mention	—		—		—		—		—		—		—		—
Substandard	0.3		—		1.2		—		—		—		—		1.5
Doubtful	—		—		—		—		—		—		—		—
Total	$	52.8	$	99.5	$	27.2	$	6.4	$	0.3	$	0.3	$	59.7	$	246.2

Commercial construction:
Pass	$	96.0	$	231.9	$	85.7	$	22.4	$	9.8	$	0.5	$	10.7	$	457.0
Special mention	—		—		1.5		—		—		—		—		1.5
Substandard	—		0.8		—		—		—		0.1		—		0.9
Doubtful	—		—		0.4		—		—		—		—		0.4
Total	$	96.0	$	232.7	$	87.6	$	22.4	$	9.8	$	0.6	$	10.7	$	459.8

Agricultural real estate:
Pass	$	24.4	$	52.1	$	32.1	$	20.2	$	15.0	$	34.0	$	6.3	$	184.1
Special mention	1.6		2.8		1.3		2.2		0.4		3.9		1.0		13.2
Substandard	0.1		8.9		3.5		1.0		3.5		5.8		2.1		24.9
Doubtful	—		2.0		—		—		—		—		—		2.0
Total	$	26.1	$	65.8	$	36.9	$	23.4	$	18.9	$	43.7	$	9.4	$	224.2



	June 30, 2020
	Term Loans Amortized Cost Basis by Origination Year
Risk by Collateral	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and floor plans:
Pass	$	1,344.6	$	196.5	$	166.4	$	105.5	$	53.8	$	115.2	$	236.3	$	2,218.3
Special mention	6.0		1.6		1.0		2.4		5.1		0.3		4.0		20.4
Substandard	8.4		13.2		8.3		0.7		4.9		3.5		11.5		50.5
Doubtful	1.9		5.6		0.2		0.1		0.1		2.6		0.3		10.8
Total	$	1,360.9	$	216.9	$	175.9	$	108.7	$	63.9	$	121.6	$	252.1	$	2,300.0

Commercial purpose secured by 1-4 family:
Pass	$	40.5	$	67.1	$	44.2	$	27.0	$	18.4	$	47.8	$	20.2	$	265.2
Special mention	0.3		2.0		0.3		0.6		0.5		1.2		0.4		5.3
Substandard	0.2		3.6		4.5		0.5		1.3		1.8		0.1		12.0
Doubtful	—		0.1		0.1		—		—		—		0.1		0.3
Total	$	41.0	$	72.8	$	49.1	$	28.1	$	20.2	$	50.8	$	20.8	$	282.8

Agricultural:
Pass	$	33.8	$	28.8	$	15.5	$	6.5	$	4.0	$	1.3	$	154.4	$	244.3
Special mention	2.7		1.7		0.4		0.1		0.1		0.4		7.6		13.0
Substandard	5.9		2.1		4.9		1.4		0.3		0.4		8.6		23.6
Doubtful	—		0.1		—		0.1		—		—		—		0.2
Total	$	42.4	$	32.7	$	20.8	$	8.1	$	4.4	$	2.1	$	170.6	$	281.1

The Company evaluates the credit quality, loan performance, and the allowance for credit loan losses of its residential and consumer loan portfolios, based primarily on the aging status of the loan and payment activity. Accordingly, loans on nonaccrual status, loans past due 90 days or more and still accruing interest, and loans modified under troubled debt restructurings are considered to be nonperforming for purposes of credit quality evaluation. The following tables present the recorded investment of our other loan portfolios based on the credit risk profile of loans that are performing and loans that are nonperforming as of the periods indicated:



	June 30, 2020
	Term Loans Amortized Cost Basis by Origination Year
Risk by Collateral	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial multi-family:
Performing	$	68.5	$	76.7	$	31.0	$	30.4	$	27.8	$	101.5	$	2.6	$	338.5
Nonperforming	—		—		—		—		—		—		—		—
Total	$	68.5	$	76.7	$	31.0	$	30.4	$	27.8	$	101.5	$	2.6	$	338.5

Residential 1-4 family:
Performing	$	191.0	$	129.2	$	84.3	$	73.3	$	86.2	$	309.0	$	—	$	873.0
Nonperforming	—		0.4		—		—		—		0.7		—		1.1
Total	$	191.0	$	129.6	$	84.3	$	73.3	$	86.2	$	309.7	$	—	$	874.1

Consumer home equity and HELOC:
Performing	$	8.7	$	10.6	$	10.5	$	13.2	$	5.7	$	16.4	$	347.8	$	412.9
Nonperforming	—		—		—		—		—		0.4		0.2		0.6
Total	$	8.7	$	10.6	$	10.5	$	13.2	$	5.7	$	16.8	$	348.0	$	413.5



	June 30, 2020
	Term Loans Amortized Cost Basis by Origination Year
Risk by Collateral	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
Consumer indirect:
Performing	$	184.7	$	238.8	$	152.5	$	100.4	$	67.7	$	56.8	$	—	$	800.9
Nonperforming	—		0.4		0.2		0.1		0.1		0.2		—		1.0
Total	$	184.7	$	239.2	$	152.7	$	100.5	$	67.8	$	57.0	$	—	$	801.9

Consumer direct and advance line:
Performing	$	29.8	$	39.4	$	39.9	$	17.0	$	8.0	$	11.2	$	23.5	$	168.8
Nonperforming	—		0.1		0.1		0.1		—		—		0.2		0.5
Total	$	29.8	$	39.5	$	40.0	$	17.1	$	8.0	$	11.2	$	23.7	$	169.3



As of December 31, 2019	Pass		Other Assets Especially Mentioned		Substandard		Doubtful		Total Criticized Loans		Total Loans
Real estate:
Commercial	$	3,305.0	$	84.7	$	97.3	$	0.8	$	182.8	$	3,487.8
Construction:
Land acquisition & development	295.4		3.8		1.9		1.0		6.7		302.1
Residential	241.0		0.9		2.2		—		3.1		244.1
Commercial	428.3		1.7		1.5		—		3.2		431.5
Total construction loans	964.7		6.4		5.6		1.0		13.0		977.7
Residential	1,235.4		2.6		7.8		0.3		10.7		1,246.1
Agricultural	185.7		14.3		26.6		—		40.9		226.6
Total real estate loans	5,690.8		108.0		137.3		2.1		247.4		5,938.2
Consumer:
Indirect consumer	781.5		0.2		2.9		—		3.1		784.6
Direct consumer	177.7		0.4		0.8		0.1		1.3		179.0
Credit card	81.6		—		—		—		—		81.6
Total consumer loans	1,040.8		0.6		3.7		0.1		4.4		1,045.2
Commercial	1,569.4		40.4		60.3		3.6		104.3		1,673.7
Agricultural	247.8		8.5		22.7		0.1		31.3		279.1
Total	$	8,548.8	$	157.5	$	224.0	$	5.9	$	387.4	$	8,936.2