
	June 30, 2021		December 31, 2020
Real estate loans:
Commercial	$	3,753.4	$	3,743.2
Construction loans:
Land acquisition & development	261.1		265.0
Residential	263.5		250.9
Commercial	632.0		523.5
Total construction loans	1,156.6		1,039.4
Residential	1,577.7		1,396.3
Agricultural	223.5		220.6
Total real estate loans	6,711.2		6,399.5
Consumer loans:
Indirect	773.7		805.1
Direct and advance lines	134.8		150.6
Credit card	64.4		70.2
Total consumer loans	972.9		1,025.9
Commercial	1,959.4		2,153.9
Agricultural	217.7		247.6
Other, including overdrafts	6.0		1.6
Loans held for investment	9,867.2		9,828.5
Deferred loan fees and costs	(32.5)		(21.0)
Loans held for investment, net of deferred fees and costs	9,834.7		9,807.5
Allowance for credit losses	(135.5)		(144.3)
Net loans held for investment	$	9,699.2	$	9,663.2


Three Months Ended June 30, 2021	Beginning Balance		Provision for (reversal of) Credit Loss		Loans Charged-Off		Recoveries Collected		Ending Balance
Allowance for credit losses (1)
Real estate:
Commercial real estate:
Non-owner occupied	$	23.0	$	(0.2)	$	—	$	0.1	$	22.9
Owner occupied	17.4		1.4		(2.2)		—		16.6
Multi-family	11.8		(0.2)		—		—		11.6
Total commercial real estate	52.2		1.0		(2.2)		0.1		51.1
Construction:
Land acquisition & development	1.2		(0.4)		(0.1)		0.3		1.0
Residential construction	1.4		0.2		(0.1)		—		1.5
Commercial construction	7.2		0.9		(0.1)		—		8.0
Total construction	9.8		0.7		(0.3)		0.3		10.5
Residential real estate:
Residential 1-4 family	11.5		1.9		—		—		13.4
Home equity and HELOC	1.4		(0.1)		—		0.1		1.4
Total residential real estate	12.9		1.8		—		0.1		14.8
Agricultural real estate	2.8		0.2		—		—		3.0
Total real estate	77.7		3.7		(2.5)		0.5		79.4
Consumer:
Indirect	16.0		(0.2)		(0.8)		0.8		15.8
Direct and advance lines	4.8		—		(0.4)		0.2		4.6
Credit card	1.5		0.3		(0.4)		0.2		1.6
Total consumer	22.3		0.1		(1.6)		1.2		22.0
Commercial:
Commercial and floor plans	31.0		(3.4)		(0.3)		1.7		29.0
Commercial purpose secured by 1-4 family	4.7		(0.4)		(0.1)		0.2		4.4
Credit card	0.3		—		(0.1)		0.1		0.3
Total commercial	36.0		(3.8)		(0.5)		2.0		33.7
Agricultural:
Agricultural	0.6		—		(0.2)		—		0.4

Total agricultural	0.6		—		(0.2)		—		0.4
Total allowance for credit losses	$	136.6	$	—	$	(4.8)	$	3.7	$	135.5

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


Six Months Ended June 30, 2020	Beginning Balance		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 are exclusive of the allowance for credit losses related to unfunded commitments which are included in Note “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 (1) character, overall financial condition and resources, and payment record of the borrower; (2) the prospects for support from any financially responsible guarantors; and (3) the nature and degree of protection provided by the cash flow and value of any underlying collateral. The loan may become collateral-dependent when the borrower is experiencing financial difficulty and, as sources of repayment become inadequate over time, the Company develops an expectation that repayment will be provided substantially through the operation or sale of the collateral.

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans classified in the following table as greater than 90 days past due continue to accrue interest. The following tables present the contractual aging of the Company’s recorded amortized cost basis in loans by portfolio as of the dates indicated.


							Total Loans
	30 - 59		60 - 89		> 90		30 or More
	Days		Days		Days		Days		Current		Non-accrual		Total
As of June 30, 2021	Past Due		Past Due		Past Due		Past Due		Loans		Loans (1)		Loans
Real estate
Commercial	$	2.8	$	0.4	$	0.4	$	3.6	$	3,740.5	$	9.3	$	3,753.4
Construction:
Land acquisition & development	0.5		—		—		0.5		260.1		0.5		261.1
Residential	0.2		—		0.4		0.6		262.9		—		263.5
Commercial	2.1		1.7		—		3.8		628.2		—		632.0
Total construction loans	2.8		1.7		0.4		4.9		1,151.2		0.5		1,156.6
Residential	0.7		1.4		1.2		3.3		1,571.2		3.2		1,577.7
Agricultural	—		—		0.1		0.1		217.4		6.0		223.5
Total real estate loans	6.3		3.5		2.1		11.9		6,680.3		19.0		6,711.2
Consumer:
Indirect consumer	3.3		0.8		0.2		4.3		767.7		1.7		773.7
Other consumer	0.4		0.1		0.2		0.7		133.9		0.2		134.8
Credit card	0.5		0.2		0.3		1.0		63.4		—		64.4
Total consumer loans	4.2		1.1		0.7		6.0		965.0		1.9		972.9
Commercial	3.6		2.3		2.1		8.0		1,944.1		7.3		1,959.4
Agricultural	0.8		0.3		0.3		1.4		214.1		2.2		217.7
Other, including overdrafts	—		—		—		—		6.0		—		6.0
Loans held for investment	$	14.9	$	7.2	$	5.2	$	27.3	$	9,809.5	$	30.4	$	9,867.2


							Total Loans
	30 - 59		60 - 89		> 90		30 or More
	Days		Days		Days		Days		Current		Non-accrual		Total
As of December 31, 2020	Past Due		Past Due		Past Due		Past Due		Loans		Loans (1)		Loans
Real estate
Commercial	$	7.6	$	1.2	$	4.0	$	12.8	$	3,720.8	$	9.6	$	3,743.2
Construction:
Land acquisition & development	2.5		1.1		0.1		3.7		260.6		0.7		265.0
Residential	1.5		0.4		—		1.9		247.9		1.1		250.9
Commercial	12.2		—		—		12.2		511.2		0.1		523.5
Total construction loans	16.2		1.5		0.1		17.8		1,019.7		1.9		1,039.4
Residential	4.7		1.6		0.5		6.8		1,384.9		4.6		1,396.3
Agricultural	2.0		—		—		2.0		212.4		6.2		220.6
Total real estate loans	30.5		4.3		4.6		39.4		6,337.8		22.3		6,399.5
Consumer:
Indirect consumer	6.4		2.0		0.5		8.9		794.3		1.9		805.1
Other consumer	0.8		0.2		0.2		1.2		149.0		0.4		150.6
Credit card	0.6		0.4		0.6		1.6		68.6		—		70.2
Total consumer loans	7.8		2.6		1.3		11.7		1,011.9		2.3		1,025.9
Commercial	6.2		1.8		1.2		9.2		2,132.9		11.8		2,153.9
Agricultural	0.4		0.6		1.4		2.4		242.1		3.1		247.6
Other, including overdrafts	—		—		—		—		1.6		—		1.6
Loans held for investment	$	44.9	$	9.3	$	8.5	$	62.7	$	9,726.3	$	39.5	$	9,828.5

(1) As of June 30, 2021 and December 31, 2020, none of our non-accrual loans were earning interest income. Additionally, no material interest income was recognized on non-accrual loans during the three and six months ended June 30, 2021 and 2020, respectively, and no material accrued interest was reversed at June 30, 2021 and 2020, respectively.

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 adjustments to certain terms including 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 under other circumstances. Certain troubled loans are on non-accrual status at the time of debt restructuring. These restructured loans may be returned to accrual status if the borrower has sustained repayment performance as required under 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 date is equal to or greater than the rate that the Company might grant for a new loan at the time of the restructuring at comparable risk, then the loan will be reclassified to performing status and the accrual of interest will resume. Loans that return to performing status will continue to be individually evaluated for credit deterioration in the ordinary course of business.

The 2020 Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) provided financial institutions with options on the treatment of troubled debt restructurings, and the Company elected to apply these options at the individual loan level. Under the CARES Act, the Company can elect: (1) to suspend the requirements under GAAP for loan modifications related to the COVID–19 pandemic that would otherwise be categorized as a troubled debt restructuring; and/or (2) to suspend any determination of a loan modified as being a troubled debt restructuring as a result of the effects of the COVID–19 pandemic, including impairment for accounting purposes. If the Company 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. These suspensions end the earlier of January 1, 2022 or the date that is 60 days after the termination of the national emergency.

The Company renegotiated loans in troubled debt restructurings in the amount of $7.2 million as of June 30, 2021, of which $5.0 million were included in non-accrual loans and $2.2 million were on accrual status. As of June 30, 2021, the Company allocated $0.2 million of allowance for credit losses to those loans and 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 $14.5 million as of December 31, 2020, of which $11.3 million were included in non-accrual loans and $3.2 million were on accrual status. As of December 31, 2020, the Company allocated $2.9 million of allowance for credit losses to those loans and 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 a modification, the Company may have already recorded an allowance for credit losses. In periods subsequent to modification, the Company continues to evaluate all troubled debt restructurings for possible credit deterioration and, where deterioration is observed, recognizes credit loss through the allowance. Additionally, the Company continues to work these loans 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, 2021 or 2020.

The Company had no material troubled debt restructurings during the previous 12 months for which there was a payment default during the three and six months ended June 30, 2021. The Company considers a payment default to occur on troubled debt restructurings when the loan is 90 days or more past due or is placed on non-accrual status after the modification.

The terms of certain other loans were modified during the quarter ended June 30, 2021 where the loan did not meet the definition of a troubled debt restructuring and the borrowers had not been experiencing financial difficulties. 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. These loans have a total recorded investment of $67.4 million as of June 30, 2021.

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 loans and commercial real estate loans. This analysis is performed no less than on an annual basis, depending upon the size of exposure and the contractual obligations governing the borrower’s financial reporting frequency. Homogeneous loans, including small business loans, are typically managed by payment performance. The Company internally risk rates its loans in accordance with a Uniform Classification System developed jointly by the various bank regulatory agencies. 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:

Special Mention — includes loans that exhibit a potential weakness in financial condition, loan structure, or documentation that warrants management’s close attention. If not promptly corrected, the potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

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, 2021
	Term Loans Amortized Cost Basis by Origination Year
Risk by Collateral	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial real estate non-owner occupied:
Pass	$	268.2	$	471.8	$	282.7	$	165.2	$	93.1	$	426.4	$	10.0	$	1,717.4
Special mention	—		1.8		2.3		0.7		—		17.4		—		22.2
Substandard	3.9		15.6		2.4		1.0		1.1		13.2		—		37.2

Total	$	272.1	$	489.2	$	287.4	$	166.9	$	94.2	$	457.0	$	10.0	$	1,776.8

Commercial real estate owner occupied:
Pass	$	194.4	$	345.8	$	268.1	$	177.5	$	111.2	$	412.0	$	8.2	$	1,517.2
Special mention	1.4		5.8		2.4		4.0		3.2		25.9		—		42.7
Substandard	1.5		5.1		6.7		10.8		2.9		23.6		0.1		50.7
Doubtful	—		—		—		—		0.1		—		—		0.1
Total	$	197.3	$	356.7	$	277.2	$	192.3	$	117.4	$	461.5	$	8.3	$	1,610.7

Commercial multi-family:
Pass	$	43.7	$	116.4	$	51.1	$	22.2	$	37.8	$	93.5	$	1.2	$	365.9



Total	$	43.7	$	116.4	$	51.1	$	22.2	$	37.8	$	93.5	$	1.2	$	365.9

Land, acquisition and development:
Pass	$	58.3	$	84.7	$	46.4	$	19.1	$	23.1	$	26.0	$	0.2	$	257.8
Special mention	1.0		0.2		—		—		0.1		—		—		1.3
Substandard	0.6		0.2		—		0.8		0.1		0.2		0.1		2.0

Total	$	59.9	$	85.1	$	46.4	$	19.9	$	23.3	$	26.2	$	0.3	$	261.1

Residential construction:
Pass	$	76.4	$	36.9	$	46.6	$	1.0	$	2.4	$	0.1	$	99.9	$	263.3

Substandard	0.2		—		—		—		—		—		—		0.2

Total	$	76.6	$	36.9	$	46.6	$	1.0	$	2.4	$	0.1	$	99.9	$	263.5

Commercial construction:
Pass	$	134.7	$	270.1	$	174.9	$	27.7	$	10.9	$	5.8	$	7.9	$	632.0



Total	$	134.7	$	270.1	$	174.9	$	27.7	$	10.9	$	5.8	$	7.9	$	632.0


	June 30, 2021
	Term Loans Amortized Cost Basis by Origination Year
Risk by Collateral	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Agricultural real estate:
Pass	$	38.8	$	42.5	$	38.8	$	25.4	$	13.9	$	32.6	$	3.4	$	195.4
Special mention	0.1		2.1		6.4		0.6		0.2		2.0		1.0		12.4
Substandard	0.1		1.4		2.7		2.7		1.3		5.1		—		13.3
Doubtful	2.4		—		—		—		—		—		—		2.4
Total	$	41.4	$	46.0	$	47.9	$	28.7	$	15.4	$	39.7	$	4.4	$	223.5

Commercial and floor plans:
Pass	$	733.3	$	202.5	$	123.0	$	99.5	$	57.4	$	109.7	$	253.3	$	1,578.7
Special mention	0.5		14.9		1.2		2.4		5.5		3.6		4.5		32.6
Substandard	1.6		3.7		1.4		2.0		0.6		5.2		1.1		15.6

Total	$	735.4	$	221.1	$	125.6	$	103.9	$	63.5	$	118.5	$	258.9	$	1,626.9

Commercial purpose secured by 1-4 family:
Pass	$	34.4	$	68.1	$	46.8	$	27.4	$	18.1	$	40.7	$	15.6	$	251.1
Special mention	—		0.2		0.4		0.6		0.1		1.0		0.4		2.7
Substandard	1.4		1.5		1.0		1.4		0.3		1.8		0.1		7.5

Total	$	35.8	$	69.8	$	48.2	$	29.4	$	18.5	$	43.5	$	16.1	$	261.3

Agricultural:
Pass	$	24.7	$	31.5	$	11.5	$	8.3	$	3.9	$	2.3	$	112.5	$	194.7
Special mention	9.0		0.6		0.5		0.3		—		0.3		2.4		13.1
Substandard	0.6		0.6		1.6		2.5		0.1		0.2		2.2		7.8
Doubtful	—		0.5		—		—		—		—		—		0.5
Total	$	34.3	$	33.2	$	13.6	$	11.1	$	4.0	$	2.8	$	117.1	$	216.1

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 borrower 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, 2021
	Term Loans Amortized Cost Basis by Origination Year
Risk by Collateral	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total





Residential 1-4 family:
Performing	$	305.9	$	492.2	$	87.8	$	39.4	$	35.5	$	232.3	$	—	$	1,193.1
Nonperforming	—		0.3		0.4		—		0.2		1.4		—		2.3
Total	$	305.9	$	492.5	$	88.2	$	39.4	$	35.7	$	233.7	$	—	$	1,195.4

Consumer home equity and HELOC:
Performing	$	6.9	$	9.2	$	5.7	$	5.6	$	4.9	$	15.1	$	332.8	$	380.2
Nonperforming	—		—		0.3		0.1		0.7		0.9		0.1		2.1
Total	$	6.9	$	9.2	$	6.0	$	5.7	$	5.6	$	16.0	$	332.9	$	382.3

Consumer indirect:
Performing	$	155.9	$	269.0	$	144.4	$	87.3	$	52.2	$	62.9	$	—	$	771.7
Nonperforming	0.1		0.4		0.5		0.3		0.2		0.5		—		2.0
Total	$	156.0	$	269.4	$	144.9	$	87.6	$	52.4	$	63.4	$	—	$	773.7


	June 30, 2021
	Term Loans Amortized Cost Basis by Origination Year
Risk by Collateral	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
Consumer direct and advance line:
Performing	$	23.1	$	36.1	$	21.1	$	19.6	$	8.2	$	10.2	$	16.2	$	134.5
Nonperforming	—		—		0.1		0.1		—		0.1		—		0.3
Total	$	23.1	$	36.1	$	21.2	$	19.7	$	8.2	$	10.3	$	16.2	$	134.8

The Company considers the performance of the loan portfolio and its impact on the allowance for credit loan losses. For certain credit card loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in credit card loans based on payment activity: