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Loans Held for Investment

3 Months Ended

Mar. 31, 2023

Loans Held for Investment

The following table presents loans by segment as of the dates indicated:


	March 31, 2023		December 31, 2022
Real estate loans:
Commercial	$	8,680.8	$	8,528.6
Construction loans:
Land acquisition & development	368.5		386.2
Residential	471.4		516.2
Commercial	1,053.1		1,042.0
Total construction loans	1,893.0		1,944.4
Residential	2,191.1		2,188.3
Agricultural	769.7		794.9
Total real estate loans	13,534.6		13,456.2
Consumer loans:
Indirect	817.3		829.7
Direct and advance lines	146.9		152.9
Credit card	71.5		75.9
Total consumer loans	1,035.7		1,058.5
Commercial	3,028.0		2,882.6
Agricultural	660.4		708.3
Other, including overdrafts	1.6		9.2
Loans held for investment	18,260.3		18,114.8
Deferred loan fees and costs	(14.6)		(15.6)
Loans held for investment, net of deferred fees and costs	18,245.7		18,099.2
Allowance for credit losses	(226.1)		(220.1)
Net loans held for investment	$	18,019.6	$	17,879.1

Allowance for Credit Losses

The following tables represent, by loan portfolio segment, the activity in the allowance for credit losses for loans held for investment:


Three Months Ended March 31, 2023	Beginning Balance		Provision for (reversal of) Credit Losses		Loans Charged-Off(2)		Recoveries Collected		Ending Balance
Allowance for credit losses (1)
Real estate:
Commercial real estate:
Non-owner occupied	$	27.2	$	1.3	$	(2.5)	$	—	$	26.0
Owner occupied	19.5		(0.2)		(1.8)		0.1		17.6
Multi-family	27.9		7.1		—		—		35.0
Total commercial real estate	74.6		8.2		(4.3)		0.1		78.6
Construction:
Land acquisition & development	1.3		0.3		—		—		1.6
Residential construction	3.6		0.1		—		—		3.7
Commercial construction	31.2		5.9		—		—		37.1
Total construction	36.1		6.3		—		—		42.4
Residential real estate:
Residential 1-4 family	20.5		(0.2)		(0.1)		—		20.2
Home equity and HELOC	1.6		0.3		(0.4)		—		1.5
Total residential real estate	22.1		0.1		(0.5)		—		21.7
Agricultural real estate	5.9		(1.2)		—		0.1		4.8
Total real estate	138.7		13.4		(4.8)		0.2		147.5
Consumer:
Indirect	15.3		0.6		(1.8)		0.7		14.8
Direct and advance lines	5.2		0.1		(1.1)		0.3		4.5
Credit card	2.8		—		(0.5)		0.2		2.5
Total consumer	23.3		0.7		(3.4)		1.2		21.8
Commercial:
Commercial and floor plans	49.0		(0.8)		(0.6)		0.9		48.5
Commercial purpose secured by 1-4 family	5.7		(0.2)		—		0.1		5.6
Credit card	0.2		0.2		(0.1)		—		0.3
Total commercial	54.9		(0.8)		(0.7)		1.0		54.4
Agricultural:
Agricultural	3.2		(1.1)		—		0.3		2.4

Total agricultural	3.2		(1.1)		—		0.3		2.4
Total allowance for credit losses	$	220.1	$	12.2	$	(8.9)	$	2.7	$	226.1


Three Months Ended March 31, 2022	Beginning Balance		ACL Recorded for PCD Loans		Provision for (reversal of) Credit Losses		Loans Charged-Off(2)		Recoveries Collected		Ending Balance
Allowance for credit losses (1)
Real estate:
Commercial real estate:
Non-owner occupied	$	17.3	$	24.1	$	6.7	$	(2.9)	$	—	$	45.2
Owner occupied	13.3		9.5		4.6		(2.2)		—		25.2
Multi-family	13.3		29.9		11.4		—		—		54.6
Total commercial real estate	43.9		63.5		22.7		(5.1)		—		125.0
Construction:
Land acquisition & development	0.5		3.4		(0.8)		(2.7)		0.1		0.5
Residential construction	2.4		—		0.9		—		—		3.3
Commercial construction	6.0		0.2		4.0		—		—		10.2
Total construction	8.9		3.6		4.1		(2.7)		0.1		14.0
Residential real estate:
Residential 1-4 family	13.4		0.1		5.2		(0.1)		0.1		18.7
Home equity and HELOC	1.2		—		0.1		—		0.1		1.4
Total residential real estate	14.6		0.1		5.3		(0.1)		0.2		20.1
Agricultural real estate	1.9		2.3		6.4		(0.1)		—		10.5
Total real estate	69.3		69.5		38.5		(8.0)		0.3		169.6
Consumer:
Indirect	14.3		—		(0.3)		(0.9)		0.4		13.5
Direct and advance lines	4.6		—		(0.1)		(0.8)		0.9		4.6
Credit card	2.2		—		0.6		(0.6)		0.1		2.3
Total consumer	21.1		—		0.2		(2.3)		1.4		20.4
Commercial:
Commercial and floor plans	27.1		11.2		18.4		(4.2)		0.4		52.9
Commercial purpose secured by 1-4 family	4.4		0.2		0.4		—		—		5.0
Credit card	0.1		—		0.3		(0.1)		—		0.3
Total commercial	31.6		11.4		19.1		(4.3)		0.4		58.2
Agricultural:
Agricultural	0.3		3.4		(0.5)		(5.3)		1.1		(1.0)

Total agricultural	0.3		3.4		(0.5)		(5.3)		1.1		(1.0)
Total allowance for credit losses	$	122.3	$	84.3	$	57.3	$	(19.9)	$	3.2	$	247.2

(1) Amounts presented exclude the allowance for credit losses related to unfunded commitments and investment securities. These amounts are included in Note “Financial Instruments with Off-Balance Sheet Risk” and the allowance for credit losses related to investment securities which are included in Note “Investment Securities” included in this report, respectively.
(2) Loans, or portions thereof, are charged-off against the allowance for credit losses when management believes the collectability of the principal is unlikely, or, with respect to consumer installment loans, according to an established delinquency schedule.

Collateral-Dependent Financial Loans

A collateral-dependent financial loan relies substantially 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 foreclosure is probable or the borrower is experiencing financial difficulty and its sources of repayment become inadequate over time. At such time, the Company develops an expectation that repayment will 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 the dates indicated:


	Collateral Type
As of March 31, 2023	Business Assets		Real Property		Total
Commercial real estate non-owner occupied	$	1.6	$	12.2	$	13.8
Commercial real estate owner occupied	—		12.1		12.1



Commercial construction real estate	—		17.9		17.9
Residential construction real estate	—		0.5		0.5


Residential 1-4 family	—		0.5		0.5


Agricultural real estate	—		4.6		4.6







Commercial and floor plans	5.4		2.1		7.5




Agricultural	2.1		0.5		2.6


Total collateral-dependent loans	$	9.1	$	50.4	$	59.5



	Collateral Type
As of December 31, 2022	Business Assets		Real Property		Total


Commercial real estate non-owner occupied	$	1.7	$	2.7	$	4.4
Commercial real estate owner occupied	—		13.0		13.0




Land, acquisition and development construction real estate	—		3.2		3.2



Residential 1-4 family	—		0.5		0.5


Agricultural real estate	0.2		5.9		6.1







Commercial and floor plans	3.1		1.5		4.6




Agricultural	2.1		5.2		7.3


Total collateral-dependent loans	$	7.1	$	32.0	$	39.1

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 90 days or more 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 or more		30 or More
	Days		Days		Days		Days		Current		Non-accrual		Total
As of March 31, 2023	Past Due		Past Due		Past Due		Past Due		Loans		Loans (1)		Loans
Real estate
Commercial	$	10.2	$	1.6	$	0.2	$	12.0	$	8,640.6	$	28.2	$	8,680.8
Construction:
Land acquisition & development	3.2		0.1		0.2		3.5		364.5		0.5		368.5
Residential	0.4		—		—		0.4		470.5		0.5		471.4
Commercial	0.6		—		—		0.6		1,034.7		17.8		1,053.1
Total construction loans	4.2		0.1		0.2		4.5		1,869.7		18.8		1,893.0
Residential	6.1		0.5		0.4		7.0		2,177.1		7.0		2,191.1
Agricultural	7.2		—		0.3		7.5		756.3		5.9		769.7
Total real estate loans	27.7		2.2		1.1		31.0		13,443.7		59.9		13,534.6
Consumer:
Indirect consumer	6.1		1.6		0.4		8.1		806.5		2.7		817.3
Other consumer	0.7		0.3		0.1		1.1		145.6		0.2		146.9
Credit card	0.5		0.4		0.6		1.5		70.0		—		71.5
Total consumer loans	7.3		2.3		1.1		10.7		1,022.1		2.9		1,035.7
Commercial	9.4		2.6		1.9		13.9		3,001.3		12.8		3,028.0
Agricultural	0.1		0.7		0.4		1.2		654.0		5.2		660.4
Other, including overdrafts	—		—		—		—		1.6		—		1.6
Loans held for investment	$	44.5	$	7.8	$	4.5	$	56.8	$	18,122.7	$	80.8	$	18,260.3


							Total Loans
	30 - 59		60 - 89		90 or more		30 or More
	Days		Days		Days		Days		Current		Non-accrual		Total
As of December 31, 2022	Past Due		Past Due		Past Due		Past Due		Loans		Loans (1)		Loans
Real estate
Commercial	$	5.6	$	0.8	$	1.1	$	7.5	$	8,501.5	$	19.6	$	8,528.6
Construction:
Land acquisition & development	1.8		—		0.6		2.4		380.1		3.7		386.2
Residential	1.1		—		—		1.1		515.1		—		516.2
Commercial	7.5		0.6		—		8.1		1,033.9		—		1,042.0
Total construction loans	10.4		0.6		0.6		11.6		1,929.1		3.7		1,944.4
Residential	9.9		2.1		1.2		13.2		2,168.7		6.4		2,188.3
Agricultural	1.1		6.1		—		7.2		780.1		7.6		794.9
Total real estate loans	27.0		9.6		2.9		39.5		13,379.4		37.3		13,456.2
Consumer:
Indirect consumer	9.3		2.4		0.6		12.3		814.7		2.7		829.7
Other consumer	0.8		0.3		0.1		1.2		151.4		0.3		152.9
Credit card	0.8		0.4		0.6		1.8		74.1		—		75.9
Total consumer loans	10.9		3.1		1.3		15.3		1,040.2		3.0		1,058.5
Commercial	7.1		1.7		2.1		10.9		2,861.5		10.2		2,882.6
Agricultural	0.8		2.2		0.1		3.1		696.5		8.7		708.3
Other, including overdrafts	—		—		—		—		9.2		—		9.2
Loans held for investment	$	45.8	$	16.6	$	6.4	$	68.8	$	17,986.8	$	59.2	$	18,114.8

(1) As of March 31, 2023 and December 31, 2022, none of our non-accrual loans were earning interest income. Additionally, no material interest income was recognized on non-accrual loans during the three months ended March 31, 2023 and 2022, respectively. There were $0.3 million and $1.0 million reversals of accrued interest at March 31, 2023 and March 31, 2022. respectively.

Modifications to Borrowers Experiencing Financial Difficulty

Modifications of loans are made in the ordinary course of business and are completed on a case-by-case basis through negotiation with the borrower in connection with the ongoing loan collection processes. Loan modifications are made to provide borrowers payment relief. Effective January 1, 2023, the Company adopted ASU 2022-02, which eliminated accounting guidance for troubled debt restructurings while requiring disclosures of borrowers experiencing financial difficulty for modifications related to principal reductions, interest rate reductions, term extensions, and more than insignificant payment delay. See “Note 17 – Recent Authoritative Accounting Guidance” of these Notes to Unaudited Consolidated Financial Statements” for further discussion of the amendments in this update.

From time to time, we may modify certain loans to borrowers who are experiencing financial difficulty. In some cases, these modifications may result in new loans. Loan modifications to borrowers experiencing financial difficulty may be in the form of a principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension or a combination thereof, among other things.

The following table presents the amortized cost basis of loans at March 31, 2023 that were both experiencing financial difficulty and modified during the three months ended March 31, 2023, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below:


	Principal Forgiveness		Term Extension		Total		% of Total Class of Loans Held for Investment (1)
Commercial real estate non-owner occupied	$	—	$	2.4	$	2.4	0.1	%
Commercial real estate owner occupied	1.6		1.3		2.9		0.1	%

Land acquisition & development construction real estate	—		0.2		0.2		0.1



Home equity and HELOC residential real estate	0.1		—		0.1		—

Agricultural real estate	—		1.2		1.2		0.2





Commercial and floor plans	—		2.0		2.0		0.1
Commercial purpose 1-4 family	—		0.6		0.6		0.1
Agricultural	—		17.8		17.8		2.7

Loans held for investment (2)	$	1.7	$	25.5	$	27.2	0.2	%

(1) Based on the amortized cost basis as of period end, divided by the period end amortized cost basis of the corresponding class of finance receivables.

(2) As of March 31, 2023, the Company excluded $0.3 million in accrued interest from the amortized cost of the identified loans.

The Company monitors the performance of loan modifications to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. Loans that were modified during the three months ended March 31, 2023 are performing in accordance with the modified terms and are classified as current at March 31, 2023.

There were no commitments to lend additional funds to borrowers experiencing financial difficulty whose terms have been modified during the three months ended March 31, 2023 in the form of a principal reduction, interest rate reduction, term extension, or other than insignificant payment delay.

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the three months ended March 31, 2023:



	Principal Forgiveness		Weighted-Average Months of Term Extension
Commercial real estate non-owner occupied	$	—	4.0
Commercial real estate owner occupied	1.3		9.7

Land acquisition & development construction real estate	—		12.4



Home equity and HELOC residential real estate	0.3		37.6

Agricultural real estate	—		7.2





Commercial and floor plans	—		11.5
Commercial purpose 1-4 family	—		8.7
Agricultural	—		9.3

Loans held for investment (1)	$	1.6

(1) Balances based on loan original contractual terms.

There were no payment defaults on these loans subsequent to their modifications during the three months ended March 31, 2023. The Company considers a payment default to occur when the loan is 90 days or more past due or the loan is placed on non-accrual status after the modification. The Company monitors the performance of modified loans on an ongoing basis. In the event of subsequent default, the allowance for credit losses continues to be reassessed on the basis of an individual evaluation of each loan. The modifications made during the periods presented did not significantly impact the Company’s determination of the allowance for credit losses.

Purchased Credit Deteriorated Loans (PCD)

The Company analyzes all acquired loans at the time of acquisition for more-than-insignificant deterioration in credit quality since their origination date. Such loans are classified as PCD, also referred to as PCD loans. Acquired loans classified as PCD are recorded at an initial amortized cost, which is comprised of the purchase price of the loans plus the initial allowance for credit losses for the loans, and any resulting discount or premium related to factors other than credit. The Company accounts for interest income on PCD loans using the interest method, whereby any purchase discounts or premiums are accreted or amortized into interest income as an adjustment of the loan’s yield.

The following table reconciles the par value, or initial amortized cost, of PCD loans acquired in the GWB acquisition as of February 1, 2022, or the date of the acquisition, with the purchase price (or initial fair value of the loans) as amended for measurement period adjustments:


Purchase price (initial fair value)	$	623.3
Allowance for credit losses (1)	298.2
Discount attributable to other factors (2)	57.7
Par value (unpaid principal balance)	$	979.2

(1) For acquired PCD loans, an allowance of $298.2 million was required with a corresponding increase to the amortized cost basis as of the acquisition date. For PCD loans where all or a portion of the loan balance had been previously written-off by GWB, or would be subject to write-off under the Company’s charge-off policy, a CECL allowance of $238.7 million, included as part of the grossed-up loan balance at acquisition was immediately written-off. The net impact to the allowance for PCD assets on the acquisition date was $59.5 million.

(2) Non-credit discount includes the difference between the amortized cost basis and the unpaid principal balance of $39.6 million established on PCD loans acquired from GWB and interest applied to principal of $18.1 million.

Credit Quality Indicators

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. The factors considered by the Company include, among other factors, the borrower’s 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 monitored 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 well-defined 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.

Doubtful — includes loans that exhibit pronounced weaknesses based on currently existing facts, conditions, and values to a point where collection or liquidation for full repayment is highly questionable and improbable. Doubtful loans are required to be placed on non-accrual status and are assigned specific loss exposure.

Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered pass-rated loans.

The Company evaluates the credit quality and loan performance for the allowance for credit losses of the following class of loans based on the aforementioned risk scale for the periods indicated:


	March 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
Risk by Collateral	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial real estate non-owner occupied:
Pass	$	239.8	$	1,188.9	$	790.1	$	604.9	$	435.3	$	1,094.1	$	29.3	$	4,382.4
Special mention	—		—		1.3		1.4		14.1		10.4		—		27.2
Substandard	—		5.2		18.0		8.0		20.9		12.1		—		64.2

Total	$	239.8	$	1,194.1	$	809.4	$	614.3	$	470.3	$	1,116.6	$	29.3	$	4,473.8
Current-period gross charge-offs	—		—		—		2.2		—		0.3		—		2.5
Commercial real estate owner occupied:
Pass	$	124.7	$	745.9	$	677.9	$	479.2	$	245.6	$	591.0	$	11.4	$	2,875.7
Special mention	2.0		4.8		14.4		13.0		6.1		21.2		3.0		64.5
Substandard	0.7		9.1		10.1		1.1		8.6		19.6		0.6		49.8
Doubtful	—		0.3		1.4		—		—		—		—		1.7
Total	$	127.4	$	760.1	$	703.8	$	493.3	$	260.3	$	631.8	$	15.0	$	2,991.7
Current-period gross charge-offs	—		0.1		1.7		—		—		—		—		1.8


	March 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
Risk by Collateral	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial multi-family:
Pass	$	64.2	$	413.2	$	254.6	$	234.0	$	88.5	$	156.9	$	1.5	$	1,212.9
Special mention	—		0.4		—		—		—		1.7		—		2.1
Substandard	—		—		—		—		—		0.3		—		0.3

Total	$	64.2	$	413.6	$	254.6	$	234.0	$	88.5	$	158.9	$	1.5	$	1,215.3
Current-period gross charge-offs	—		—		—		—		—		—		—		—
Land, acquisition and development:
Pass	$	36.0	$	145.5	$	93.1	$	33.7	$	12.1	$	29.3	$	9.4	$	359.1
Special mention	—		6.7		0.1		—		—		0.3		—		7.1
Substandard	—		—		0.2		0.2		1.6		0.3		—		2.3

Total	$	36.0	$	152.2	$	93.4	$	33.9	$	13.7	$	29.9	$	9.4	$	368.5
Current-period gross charge-offs	—		—		—		—		—		—		—		—
Residential construction:
Pass	$	13.8	$	107.3	$	92.2	$	0.4	$	0.2	$	6.1	$	250.5	$	470.5

Substandard	—		—		0.5		—		—		0.4		—		0.9

Total	$	13.8	$	107.3	$	92.7	$	0.4	$	0.2	$	6.5	$	250.5	$	471.4
Current-period gross charge-offs	—		—		—		—		—		—		—		—
Commercial construction:
Pass	$	60.2	$	432.9	$	370.9	$	77.6	$	8.2	$	—	$	22.4	$	972.2
Special mention	—		4.6		—		23.1		—		—		13.7		41.4
Substandard	—		1.2		24.4		—		—		—		—		25.6
Doubtful	—		13.9		—		—		—		—		—		13.9
Total	$	60.2	$	452.6	$	395.3	$	100.7	$	8.2	$	—	$	36.1	$	1,053.1
Current-period gross charge-offs	—		—		—		—		—		—		—		—
Agricultural real estate:
Pass	$	16.4	$	168.5	$	166.7	$	105.2	$	61.9	$	143.6	$	31.4	$	693.7
Special mention	0.1		0.9		0.3		1.8		1.8		14.6		9.7		29.2
Substandard	6.1		19.8		5.5		1.6		0.5		12.2		0.1		45.8
Doubtful	—		—		—		1.0		—		—		—		1.0
Total	$	22.6	$	189.2	$	172.5	$	109.6	$	64.2	$	170.4	$	41.2	$	769.7
Current-period gross charge-offs	—		—		—		—		—		—		—		—


	March 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
Risk by Collateral	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial and floor plans:
Pass	$	152.5	$	458.7	$	315.9	$	197.1	$	109.9	$	297.7	$	700.4	$	2,232.2
Special mention	0.6		8.0		11.8		1.3		1.2		2.7		29.0		54.6
Substandard	4.1		15.0		6.1		2.4		4.1		2.9		46.8		81.4
Doubtful	—		2.3		1.2		—		—		—		2.6		6.1
Total	$	157.2	$	484.0	$	335.0	$	200.8	$	115.2	$	303.3	$	778.8	$	2,374.3
Current-period gross charge-offs	—		0.1		0.1		0.1		0.1		0.2		—		0.6
Commercial purpose secured by 1-4 family:
Pass	$	35.2	$	186.0	$	129.2	$	64.3	$	29.3	$	68.0	$	27.7	$	539.7
Special mention	0.6		0.1		1.1		3.2		0.2		0.8		—		6.0
Substandard	0.2		0.2		0.3		0.1		0.3		1.9		—		3.0

Total	$	36.0	$	186.3	$	130.6	$	67.6	$	29.8	$	70.7	$	27.7	$	548.7
Current-period gross charge-offs	—		—		—		—		—		—		—		—
Agricultural:
Pass	$	24.5	$	109.6	$	53.2	$	28.5	$	8.8	$	9.1	$	342.0	$	575.7
Special mention	0.4		0.6		1.0		0.5		0.5		0.1		8.1		11.2
Substandard	3.1		46.3		1.5		2.5		0.5		1.1		16.6		71.6

Total	$	28.0	$	156.5	$	55.7	$	31.5	$	9.8	$	10.3	$	366.7	$	658.5
Current-period gross charge-offs	—		—		—		—		—		—		—		—


	December 31, 2022
	Term Loans Amortized Cost Basis by Origination Year
Risk by Collateral	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Commercial real estate non-owner occupied:
Pass	$	1,162.6	$	861.3	$	661.1	$	467.6	$	241.5	$	890.4	$	29.2	$	4,313.7
Special mention	1.0		6.8		2.3		4.6		—		7.4		—		22.1
Substandard	0.1		13.9		10.8		18.2		19.6		9.8		—		72.4

Total	$	1,163.7	$	882.0	$	674.2	$	490.4	$	261.1	$	907.6	$	29.2	$	4,408.2
Commercial real estate owner occupied:
Pass	$	793.0	$	718.7	$	533.9	$	266.3	$	165.8	$	551.3	$	18.2	$	3,047.2
Special mention	10.9		14.2		12.3		6.1		5.6		5.5		1.1		55.7
Substandard	8.4		3.0		2.3		8.9		8.5		17.2		0.5		48.8
Doubtful	0.4		1.4		—		—		—		—		—		1.8
Total	$	812.7	$	737.3	$	548.5	$	281.3	$	179.9	$	574.0	$	19.8	$	3,153.5
Commercial multi-family:
Pass	$	369.2	$	204.9	$	189.0	$	52.1	$	35.0	$	113.7	$	1.0	$	964.9
Special mention	—		—		—		—		—		1.7		—		1.7
Substandard	—		—		—		—		—		0.3		—		0.3

Total	$	369.2	$	204.9	$	189.0	$	52.1	$	35.0	$	115.7	$	1.0	$	966.9


	December 31, 2022
	Term Loans Amortized Cost Basis by Origination Year
Risk by Collateral	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
Land, acquisition and development:
Pass	$	152.5	$	114.4	$	29.5	$	17.0	$	10.9	$	28.4	$	22.2	$	374.9
Special mention	6.7		—		—		—		0.2		0.3		—		7.2
Substandard	—		0.3		0.2		—		—		0.4		—		0.9
Doubtful	—		3.2		—		—		—		—		—		3.2
Total	$	159.2	$	117.9	$	29.7	$	17.0	$	11.1	$	29.1	$	22.2	$	386.2
Residential construction:
Pass	$	118.4	$	119.9	$	0.4	$	0.3	$	0.4	$	5.8	$	270.1	$	515.3

Substandard	—		0.5		—		—		—		0.4		—		0.9

Total	$	118.4	$	120.4	$	0.4	$	0.3	$	0.4	$	6.2	$	270.1	$	516.2
Commercial construction:
Pass	$	442.7	$	374.8	$	89.7	$	45.9	$	0.4	$	—	$	10.6	$	964.1
Special mention	2.3		—		23.1		—		—		—		11.3		36.7
Substandard	16.8		24.4		—		—		—		—		—		41.2

Total	$	461.8	$	399.2	$	112.8	$	45.9	$	0.4	$	—	$	21.9	$	1,042.0
Agricultural real estate:
Pass	$	180.0	$	172.8	$	109.5	$	64.8	$	46.6	$	105.1	$	31.4	$	710.2
Special mention	22.4		0.7		1.2		2.6		10.0		3.2		11.0		51.1
Substandard	1.8		12.3		3.5		0.6		2.7		11.3		0.1		32.3
Doubtful	—		—		1.3		—		—		—		—		1.3
Total	$	204.2	$	185.8	$	115.5	$	68.0	$	59.3	$	119.6	$	42.5	$	794.9
Commercial and floor plans:
Pass	$	501.7	$	358.9	$	214.4	$	124.3	$	120.3	$	171.1	$	631.6	$	2,122.3
Special mention	15.9		6.8		1.3		4.4		0.9		4.9		18.5		52.7
Substandard	9.8		3.3		3.7		3.4		3.2		2.1		47.2		72.7
Doubtful	0.3		1.3		—		—		—		—		0.1		1.7
Total	$	527.7	$	370.3	$	219.4	$	132.1	$	124.4	$	178.1	$	697.4	$	2,249.4
Commercial purpose secured by 1-4 family:
Pass	$	191.7	$	134.5	$	69.8	$	30.4	$	29.9	$	39.5	$	28.9	$	524.7
Special mention	0.1		1.2		2.1		0.2		1.4		0.2		—		5.2
Substandard	0.2		0.3		0.1		0.3		0.9		1.2		—		3.0

Total	$	192.0	$	136.0	$	72.0	$	30.9	$	32.2	$	40.9	$	28.9	$	532.9
Agricultural:
Pass	$	127.2	$	59.7	$	31.8	$	10.6	$	8.6	$	3.1	$	375.1	$	616.1
Special mention	26.1		2.8		0.4		1.0		0.3		—		26.2		56.8
Substandard	22.8		4.6		2.8		0.6		1.2		0.2		0.8		33.0
Doubtful	—		0.5		—		—		—		—		—		0.5
Total	$	176.1	$	67.6	$	35.0	$	12.2	$	10.1	$	3.3	$	402.1	$	706.4

The Company evaluates the credit quality, loan performance, and the allowance for credit 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 are considered nonperforming for purposes of credit quality evaluation. The following tables present the recorded investment of these loan portfolios based on the credit risk profile of loans that are performing and loans that are nonperforming as of the periods indicated:


	March 31, 2023
	Term Loans Amortized Cost Basis by Origination Year
Risk by Collateral	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total





Residential 1-4 family:
Performing	$	13.3	$	266.1	$	508.2	$	532.9	$	95.2	$	232.5	$	—	$	1,648.2
Nonperforming	—		—		0.3		0.1		0.4		3.6		—		4.4
Total	$	13.3	$	266.1	$	508.5	$	533.0	$	95.6	$	236.1	$	—	$	1,652.6
Current-period gross charge-offs	—		—		—		—		—		0.1		—		0.1
Consumer home equity and HELOC:
Performing	$	4.7	$	22.9	$	7.0	$	4.6	$	5.2	$	18.7	$	472.3	$	535.4
Nonperforming	0.1		0.6		0.5		0.2		0.2		1.3		0.2		3.1
Total	$	4.8	$	23.5	$	7.5	$	4.8	$	5.4	$	20.0	$	472.5	$	538.5
Current-period gross charge-offs	0.3		—		—		0.1		—		—		—		0.4
Consumer indirect:
Performing	$	63.4	$	352.8	$	159.2	$	116.4	$	52.1	$	70.3	$	—	$	814.2
Nonperforming	—		0.8		1.1		0.5		0.2		0.5		—		3.1
Total	$	63.4	$	353.6	$	160.3	$	116.9	$	52.3	$	70.8	$	—	$	817.3
Current-period gross charge-offs	—		0.9		0.6		0.2		—		0.1		—		1.8
Consumer direct and advance line:
Performing	$	11.2	$	47.4	$	28.0	$	15.6	$	7.2	$	13.2	$	23.9	$	146.5
Nonperforming	—		0.1		0.1		0.1		—		0.1		—		0.4
Total	$	11.2	$	47.5	$	28.1	$	15.7	$	7.2	$	13.3	$	23.9	$	146.9
Current-period gross charge-offs	—		0.2		0.1		—		—		0.7		0.1		1.1


	December 31, 2022
	Term Loans Amortized Cost Basis by Origination Year
Risk by Collateral	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total





Residential 1-4 family:
Performing	$	258.9	$	490.3	$	541.6	$	98.0	$	32.0	$	213.8	$	—	$	1,634.6
Nonperforming	—		0.2		0.1		0.5		0.3		3.7		—		4.8
Total	$	258.9	$	490.5	$	541.7	$	98.5	$	32.3	$	217.5	$	—	$	1,639.4
Consumer home equity and HELOC:
Performing	$	23.8	$	8.0	$	5.2	$	5.5	$	5.6	$	15.2	$	482.8	$	546.1
Nonperforming	0.6		0.3		0.2		0.2		0.1		1.2		0.2		2.8
Total	$	24.4	$	8.3	$	5.4	$	5.7	$	5.7	$	16.4	$	483.0	$	548.9
Consumer indirect:
Performing	$	380.3	$	176.4	$	130.0	$	59.7	$	33.6	$	46.3	$	—	$	826.3
Nonperforming	1.0		0.9		0.6		0.3		0.2		0.4		—		3.4
Total	$	381.3	$	177.3	$	130.6	$	60.0	$	33.8	$	46.7	$	—	$	829.7
Consumer direct and advance line:
Performing	$	52.6	$	31.9	$	18.2	$	8.5	$	6.5	$	8.9	$	25.8	$	152.4
Nonperforming	0.1		0.1		0.1		—		—		0.1		0.1		0.5
Total	$	52.7	$	32.0	$	18.3	$	8.5	$	6.5	$	9.0	$	25.9	$	152.9

While the Company considers the performance of the loan portfolio on the allowance for credit 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 of the credit card holder. The following table presents the recorded investment in credit card loans based on payment activity for the periods indicated:


As of March 31, 2023	Consumer		Commercial		Agricultural		Total
Credit Card:
Performing	$	70.9	$	104.6	$	1.9	$	177.4
Nonperforming	0.6		0.4		—		1.0
Total credit card	$	71.5	$	105.0	$	1.9	$	178.4
Current-period gross charge-offs	$	0.5	$	0.1	$	—	$	0.6



As of December 31, 2022	Consumer		Commercial		Agricultural		Total
Credit Card:
Performing	$	75.4	$	100.0	$	1.9	$	177.3
Nonperforming	0.5		0.3		—		0.8
Total credit card	$	75.9	$	100.3	$	1.9	$	178.1

In the normal course of business, there were no material purchases of portfolio loans and no material sales of loans held for investment during the three months ended March 31, 2023 or 2022.