The Company has certain lending policies and procedures in place that are designed to minimize the level of risk within the loan portfolio. Diversification of the loan portfolio manages the risk associated with fluctuations in economic conditions. Authority levels are established for the extension of credit to ensure consistency throughout the Company. It is necessary that policies, processes, and practices implemented to control the risks of individual credit transactions and portfolio segments are sound and adhered to. The Company maintains an independent loan review department that reviews and validates the risk assessment on a continual basis. Management regularly

evaluates the results of the loan reviews. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company’s policies and procedures.

Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Commercial loans are made based on the identified cash flows of the borrower and on the underlying collateral provided by the borrower. The cash flows of the borrower, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. 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 from its customers.

Specialty lending loans include Asset-based and Factoring loans. Asset-based loans are offered primarily in the form of revolving lines of credit to commercial borrowers that do not generally qualify for traditional bank financing. Asset-based loans are underwritten based primarily upon the value of the collateral pledged to secure the loan, rather than on the borrower’s general financial condition. The Company utilizes pre-loan due diligence techniques, monitoring disciplines, and loan management practices common within the asset-based lending industry to underwrite loans to these borrowers. Factoring loans provide working capital through the purchase and/or financing of accounts receivable to borrowers in the transportation industry and to commercial borrowers that do not generally qualify for traditional bank financing. During the first quarter of 2022, the Company sold its factoring loan portfolio to an alternative financing company. The sale included $82.6 million of loans, resulting in a gain of $2.4 million.

Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans, in addition to those of real estate loans. 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 largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. The Company requires that an appraisal of the collateral be made at origination and on an as-needed basis, in conformity with current market conditions and regulatory requirements. The underwriting standards address both owner and non-owner-occupied real estate. Also included in Commercial real estate are Construction loans that are underwritten using feasibility studies, independent appraisal reviews, sensitivity analysis or absorption and lease rates, and financial analysis of the developers and property owners. Construction loans are based upon estimates of costs and value associated with the complete project. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their repayment being sensitive to interest rate changes, governmental regulation of real property, economic conditions, and the availability of long-term financing.

Consumer real estate loans, including residential real estate and home equity loans, are underwritten based on the borrower’s loan-to-value percentage, collection remedies, and overall credit history.

Consumer loans are underwritten based on the borrower’s repayment ability. The Company monitors delinquencies on all of its consumer loans and leases. The underwriting and review practices combined with the relatively small loan amounts that are spread across many individual borrowers, minimizes risk. Consumer loans and leases that are 90 days past due or more are considered non-performing.

Credit cards include both commercial and consumer credit cards. Commercial credit cards are generally unsecured and are underwritten with criteria similar to commercial loans, including an analysis of the borrower’s cash flow, available business capital, and overall creditworthiness of the borrower. Consumer credit cards are underwritten based on the borrower’s repayment ability. The Company monitors delinquencies on all of its consumer credit cards and periodically reviews the distribution of credit scores relative to historical periods to monitor credit risk on its consumer credit card loans.

Credit risk is a potential loss resulting from nonpayment of either the primary or secondary exposure. Credit risk is mitigated with formal risk management practices and a thorough initial credit-granting process including consistent underwriting standards and approval process. Control factors or techniques to minimize credit risk include knowing the client, understanding total exposure, analyzing the client and debtor’s financial capacity, and monitoring the client’s activities. Credit risk and portions of the portfolio risk are managed through concentration considerations, average risk ratings, and other aggregate characteristics.

This table provides a summary of loan classes and an aging of past due loans at September 30, 2022 and December 31, 2021 (in thousands):

The Company sold consumer real estate loans with proceeds of $33.7 million and $118.8 million in the secondary market without recourse during the nine months ended September 30, 2022 and 2021, respectively.

The Company has ceased the recognition of interest on loans with a carrying value of $19.8 million and $92.3 million at September 30, 2022 and December 31, 2021, respectively. Restructured loans totaled $5.5 million and $7.3 million at September 30, 2022 and December 31, 2021, respectively. Loans 90 days past due and still accruing interest amounted to $2.5 million and $2.6 million at September 30, 2022 and December 31, 2021, respectively. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. There was an

insignificant amount of interest reversed related to loans on nonaccrual during 2022 and 2021. Nonaccrual loans with no related allowance for credit losses totaled $17.2 million and $85.9 million at September 30, 2022 and December 31, 2021, respectively.

The following tables provide the amortized cost of nonaccrual loans with no related allowance for credit losses by loan class at September 30, 2022 and December 31, 2021 (in thousands):

The following tables provide a summary of the amortized cost balance of each of the Company’s loan classes disaggregated by collateral type and origination year as of September 30, 2022 and December 31, 2021 (in thousands):

	September 30, 2022
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Loan Segment and Type	Amortized Cost Basis by Origination Year - Term Loans
Loan Segment and Type	2022		2021		2020		2019		2018		Prior						Total
Commercial and industrial:
Equipment/Accounts Receivable/Inventory	$	1,680,546	$	1,695,190	$	685,162	$	281,578	$	103,022	$	94,427	$	4,056,424	$	6,094	$	8,602,443
Agriculture		8,122		5,330		4,397		2,414		497		638		160,658		70		182,126
Overdrafts		—		—		—		—		—		—		4,545		—		4,545
Total Commercial and industrial		1,688,668		1,700,520		689,559		283,992		103,519		95,065		4,221,627		6,164		8,789,114
Specialty lending:
Asset-based lending		18,623		56,139		40,785		—		—		—		432,576		—		548,123
Total Specialty lending		18,623		56,139		40,785		—		—		—		432,576		—		548,123
Commercial real estate:
Owner-occupied		490,801		602,062		405,019		186,294		145,177		201,132		92,172		—		2,122,657
Non-owner-occupied		715,475		917,810		569,503		417,488		117,616		305,540		10,517		—		3,053,949
Farmland		83,777		49,189		229,799		24,407		16,516		26,306		86,372		226		516,592
5+ Multi-family		33,595		30,206		71,213		19,100		1,651		6,126		3,526		—		165,417
1-4 Family construction		45,302		33,332		—		—		—		—		1,226		—		79,860
General construction		320,538		737,076		52,217		45,022		—		411		10,478		—		1,165,742
Total Commercial real estate		1,689,488		2,369,675		1,327,751		692,311		280,960		539,515		204,291		226		7,104,217
Consumer real estate:
HELOC		127		—		639		280		512		5,646		329,228		1,215		337,647
First lien: 1-4 family		518,059		759,084		625,458		175,944		49,339		141,975		13		—		2,269,872
Junior lien: 1-4 family		7,624		8,641		5,332		2,689		978		1,653		82		—		26,999
Total Consumer real estate		525,810		767,725		631,429		178,913		50,829		149,274		329,323		1,215		2,634,518
Consumer:
Revolving line		469		585		—		—		—		—		54,610		550		56,214
Auto		7,346		7,402		5,022		3,305		451		222		—		—		23,748
Other		17,422		28,035		1,250		992		1,204		626		5,334		—		54,863
Total Consumer		25,237		36,022		6,272		4,297		1,655		848		59,944		550		134,825
Credit cards:
Consumer		—		—		—		—		—		—		183,799		—		183,799
Commercial		—		—		—		—		—		—		252,181		—		252,181
Total Credit cards		—		—		—		—		—		—		435,980		—		435,980
Leases and other:
Leases		—		—		—		712		—		1,241		—		—		1,953
Other		71,358		34,840		28,072		32,187		17,949		1,108		49,329		—		234,843
Total Leases and other		71,358		34,840		28,072		32,899		17,949		2,349		49,329		—		236,796
Total loans	$	4,019,184	$	4,964,921	$	2,723,868	$	1,192,412	$	454,912	$	787,051	$	5,733,070	$	8,155	$	19,883,573

	December 31, 2021
Loan Segment and Type													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




	Amortized Cost Basis by Origination Year - Term Loans
	2021		2020		2019		2018		2017		Prior						Total
Commercial and industrial:
Equipment/Accounts Receivable/Inventory	$	2,400,110	$	945,383	$	356,348	$	150,892	$	115,571	$	131,900	$	2,984,740	$	247	$	7,085,191
Agriculture		12,077		5,884		3,308		640		344		1,143		130,946		—		154,342
Overdrafts		—		—		—		—		—		—		18,587		—		18,587
Total Commercial and industrial		2,412,187		951,267		359,656		151,532		115,915		133,043		3,134,273		247		7,258,120
Specialty lending:
Asset-based lending		34,552		49,373		—		—		—		—		331,282		—		415,207
Factoring		—		—		—		—		—		—		107,155		—		107,155
Total Specialty lending		34,552		49,373		—		—		—		—		438,437		—		522,362
Commercial real estate:
Owner-occupied		680,135		519,448		226,631		177,576		91,539		159,482		11,727		—		1,866,538
Non-owner-occupied		1,058,025		689,167		591,886		162,491		135,100		258,541		10,969		—		2,906,179
Farmland		61,505		273,624		34,145		16,969		19,929		34,858		38,239		999		480,268
5+ Multi-family		58,268		95,024		41,426		1,206		511		6,820		2,057		—		205,312
1-4 Family construction		53,004		4,933		17,333		—		—		—		985		—		76,255
General construction		439,973		160,553		64,283		38,505		203		256		29,219		—		732,992
Total Commercial real estate		2,350,910		1,742,749		975,704		396,747		247,282		459,957		93,196		999		6,267,544
Consumer real estate:
HELOC		248		547		327		574		646		6,363		320,410		2,523		331,638
First lien: 1-4 family		830,513		712,264		200,167		58,734		61,641		102,997		19		—		1,966,335
Junior lien: 1-4 family		9,114		6,299		3,361		1,150		820		1,299		17		—		22,060
Total Consumer real estate		839,875		719,110		203,855		60,458		63,107		110,659		320,446		2,523		2,320,033
Consumer:
Revolving line		974		—		—		—		—		—		60,049		120		61,143
Auto		9,886		7,775		5,462		1,107		479		220		—		—		24,929
Other		31,391		2,041		1,949		1,543		2,542		708		2,889		—		43,063
Total Consumer		42,251		9,816		7,411		2,650		3,021		928		62,938		120		129,135
Credit cards:
Consumer		—		—		—		—		—		—		180,296		—		180,296
Commercial		—		—		—		—		—		—		211,093		—		211,093
Total Credit cards		—		—		—		—		—		—		391,389		—		391,389
Leases and other:
Leases		—		—		814		—		739		614		—		—		2,167
Other		99,952		44,113		58,164		22,344		5,631		779		49,138		—		280,121
Total Leases and other		99,952		44,113		58,978		22,344		6,370		1,393		49,138		—		282,288
Total loans	$	5,779,727	$	3,516,428	$	1,605,604	$	633,731	$	435,695	$	705,980	$	4,489,817	$	3,889	$	17,170,871

Accrued interest on loans totaled $66.5 million and $45.2 million as of September 30, 2022 and December 31, 2021, respectively, and is included in the Accrued income line on the Company’s Consolidated Balance Sheets. The total amount of accrued interest is excluded from the amortized cost basis of loans presented above. Further, the Company has elected not to measure an allowance for credit losses for accrued interest receivable.

As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to the risk grading of specified classes of loans, net charge-offs, non-performing loans, and general economic conditions.

The Company utilizes a risk grading matrix to assign a rating to each of its commercial, commercial real estate, and construction real estate loans. Changes in credit risk are monitored on a continuous basis and changes in risk ratings are made when identified. The loan ratings are summarized into the following categories: Non-watch list, Watch, Special Mention, Substandard, and Doubtful. Any loan not classified in one of the categories described below is considered to be a Non-watch list loan. A description of the general characteristics of the loan rating categories is as follows:

A discussion of the credit quality indicators that impact each type of collateral securing Commercial and industrial loans is included below:

Equipment, accounts receivable, and inventory General commercial and industrial loans are secured by working capital assets and non-real estate assets. The general purpose of these loans is for financing capital expenditures and current operations for commercial and industrial entities. These assets are short-term in nature. In the case of accounts receivable and inventories, the repayment of debt is reliant upon converting assets into cash or through goods and services being sold and collected. Collateral-based risk is due to aged short-term assets, which can be indicative of underlying issues with the borrower and lead to the value of the collateral being overstated.

Agriculture Agricultural loans are secured by non-real estate agricultural assets. These include shorter-term assets such as equipment, crops, and livestock. The risks associated with loans to finance crops or livestock include the borrower’s ability to successfully raise and market the commodity. Adverse weather conditions and other natural perils can dramatically affect farmers’ or ranchers’ production and ability to service debt. Volatile commodity prices present another significant risk for agriculture borrowers. Market price volatility and production cost volatility can affect both revenues and expenses.

Overdrafts Commercial overdrafts are typically short-term and unsecured. Some commercial borrowers tie their overdraft obligation to their line of credit, so any draw on the line of credit will satisfy the overdraft.

Based on the factors noted above for each type of collateral, the Company assigns risk ratings to borrowers based on their most recently assessed financial position.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of September 30, 2022 and December 31, 2021 (in thousands):

	September 30, 2022
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2022		2021		2020		2019		2018		Prior						Total
Equipment/Accounts Receivable/Inventory
Non-watch list – Pass	$	1,634,248	$	1,612,361	$	613,175	$	259,118	$	96,426	$	90,200	$	3,765,887	$	5,942	$	8,077,357
Watch – Pass		20,266		63,552		62,835		7,551		3,625		2,592		137,739		—		298,160
Special Mention		7,127		1,516		1,192		590		2,043		1,026		46,493		—		59,987
Substandard		16,919		17,732		7,960		14,319		928		609		103,537		152		162,156
Doubtful		1,986		29		—		—		—		—		2,768		—		4,783
Total Equipment/Accounts Receivable/Inventory	$	1,680,546	$	1,695,190	$	685,162	$	281,578	$	103,022	$	94,427	$	4,056,424	$	6,094	$	8,602,443
Agriculture
Non-watch list – Pass	$	7,407	$	5,067	$	4,043	$	2,414	$	497	$	638	$	144,548	$	70	$	164,684
Watch – Pass		615		199		206		—		—		—		4,349		—		5,369
Special Mention		100		64		148		—		—		—		1,428		—		1,740
Substandard		—		—		—		—		—		—		10,333		—		10,333
Doubtful		—		—		—		—		—		—		—		—		—
Total Agriculture	$	8,122	$	5,330	$	4,397	$	2,414	$	497	$	638	$	160,658	$	70	$	182,126

	December 31, 2021
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2021		2020		2019		2018		2017		Prior						Total
Equipment/Accounts Receivable/Inventory
Non-watch list – Pass	$	2,299,784	$	874,786	$	325,630	$	141,667	$	106,141	$	130,153	$	2,750,764	$	247	$	6,629,172
Watch – Pass		68,322		34,324		25,572		5,056		1,794		698		106,177		—		241,943
Special Mention		5,886		—		2,600		592		1,742		997		41,209		—		53,026
Substandard		25,466		3,023		2,546		3,577		1,202		52		45,053		—		80,919
Doubtful		652		33,250		—		—		4,692		—		41,537		—		80,131
Total Equipment/Accounts Receivable/Inventory	$	2,400,110	$	945,383	$	356,348	$	150,892	$	115,571	$	131,900	$	2,984,740	$	247	$	7,085,191
Agriculture
Non-watch list – Pass	$	11,512	$	5,394	$	2,608	$	212	$	344	$	1,143	$	100,630	$	—	$	121,843
Watch – Pass		500		222		328		428		—		—		6,532		—		8,010
Special Mention		—		—		372		—		—		—		1,361		—		1,733
Substandard		65		268		—		—		—		—		22,423		—		22,756
Doubtful		—		—		—		—		—		—		—		—		—
Total Agriculture	$	12,077	$	5,884	$	3,308	$	640	$	344	$	1,143	$	130,946	$	—	$	154,342

A discussion of the credit quality indicators that impact each type of collateral securing Specialty loans is included below:

Asset-based lending General asset-based loans are secured by accounts receivable, inventory, equipment, and real estate. The purpose of these loans is for financing current operations for commercial customers. The repayment of debt is reliant upon collection of the accounts receivable within 30 to 90 days or converting assets into cash or through goods and services being sold and collected. The Company tracks each individual borrower credit risk based on their loan to collateral position. Any borrower position where the underlying value of collateral is below the fair value of the loan is considered out-of-margin and inherently higher risk.

Factoring During the first quarter of 2022, the Company sold its factoring loan portfolio to an alternative financing company. Prior to the sale of this portfolio, factoring loans were secured by accounts receivable. The purpose of these loans was for financing current operations for trucking or other commercial customers. The repayment of debt was reliant upon collection of the accounts receivable within 30 to 90 days. The Company tracked each individual borrower’s credit risk based on their loan to collateral position. To assess credit risk, the portfolio was separated into two tiers and a specifically impaired category. Tier 1 were loans that had not experienced collateral coverage rates falling below an internally tracked threshold at any time during their relationship history. The internal threshold was lower than each customers’ actual contractual collateral coverage ratio. Tier 2 were loans that had experienced collateral coverage rates falling below the same internally tracked threshold during their relationship history. Loans individually evaluated were loans that had either experienced collateral coverage rates falling below an internally tracked threshold during their relationship history or had balances that were greater than an internally tracked threshold. Individually evaluated loans utilized a practical expedient for the purpose of determining the expected credit loss. Collateral dependent assets were loans placed on non-accrual and loans considered to be TDRs. The combination of these categories created an associated allowance to this portfolio of $1.0 million as of December 31, 2021.

The following table provides a summary of the amortized cost balance by risk rating for asset-based loans as of September 30, 2022 and December 31, 2021 (in thousands):

The following table provides a summary of the amortized cost balance by risk rating for factoring loans as of December 31, 2021 (in thousands):

A discussion of the credit quality indicators that impact each type of collateral securing Commercial real estate loans is included below:

Owner-occupied Owner-occupied loans are secured by commercial real estate. These loans are often longer tenured and susceptible to multiple economic cycles. The loans rely on the owner-occupied operations to service debt which cover a broad spectrum of industries. Real estate debt can carry a significant amount of leverage for a borrower to maintain.

Non-owner-occupied Non-owner-occupied loans are secured by commercial real estate. These loans are often longer tenured and susceptible to multiple economic cycles. The key element of risk in this type of lending is the cyclical nature of real estate markets. Although national conditions affect the overall real estate industry, the effect of national conditions on local markets is equally important. Factors such as unemployment rates, consumer demand, household formation, and the level of economic activity can vary widely from state to state and among metropolitan areas. In addition to geographic considerations, markets can be defined by property type. While all sectors are influenced by economic conditions, some sectors are more sensitive to certain economic factors than others.

Farmland Farmland loans are secured by real estate used for agricultural purposes such as crop and livestock production. Assets used as collateral are long-term assets that carry the ability to have longer amortizations and maturities. Longer terms carry the risk of added susceptibility to market conditions. The limited purpose of some Agriculture-related collateral affects credit risk because such collateral may have limited or no other uses to support values when loan repayment problems emerge.

5+ Multi-family 5+ multi-family loans are secured by a multi-family residential property. The primary risks associated with this type of collateral are largely driven by economic conditions. The national and local market conditions can change with unemployment rates or competing supply of multi-family housing. Tenants may not be able to afford their housing or have better options and this can result in increased vacancy. Rents may need to be lowered to fill apartment units. Increased vacancy and lower rental rates not only drive the borrower’s ability to repay debt but also contribute to how the collateral is valued.

1-4 Family construction 1-4 family construction loans are secured by 1-4 family residential real estate and are in the process of construction or improvements being made. The predominant risk inherent to this portfolio is the risk associated with a borrower’s ability to successfully complete a project on time and within budget. Market

conditions also play an important role in understanding the risk profile. Risk from adverse changes in market conditions from the start of development to completion can result in deflated collateral values

General construction General construction loans are secured by commercial real estate in process of construction or improvements being made and their repayment is dependent on the collateral’s completion. Construction lending presents unique risks not encountered in term financing of existing real estate. The predominant risk inherent to this portfolio is the risk associated with a borrower’s ability to successfully complete a project on time and within budget. Commercial properties under construction are susceptible to market and economic conditions. Demand from prospective customers may erode after construction begins because of a general economic slowdown or an increase in the supply of competing properties.

Based on the factors noted above for each type of collateral, the Company assigns risk ratings to borrowers based on their most recently assessed financial position.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of September 30, 2022 and December 31, 2021 (in thousands):

	September 30, 2022
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2022		2021		2020		2019		2018		Prior						Total
Owner-occupied
Non-watch list – Pass	$	478,491	$	601,637	$	390,884	$	153,748	$	141,591	$	195,868	$	92,172	$	—	$	2,054,391
Watch – Pass		2,455		343		13,677		9,758		3,082		2,071		—		—		31,386
Special Mention		6,656		82		432		21,113		—		—		—		—		28,283
Substandard		3,199		—		26		1,675		504		3,193		—		—		8,597
Doubtful		—		—		—		—		—		—		—		—		—
Total Owner-occupied	$	490,801	$	602,062	$	405,019	$	186,294	$	145,177	$	201,132	$	92,172	$	—	$	2,122,657
Non-owner-occupied
Non-watch list – Pass	$	662,490	$	872,920	$	569,503	$	406,108	$	93,303	$	254,213	$	10,517	$	—	$	2,869,054
Watch – Pass		31,639		44,890		—		11,380		24,313		5,124		—		—		117,346
Special Mention		21,346		—		—		—		—		46,188		—		—		67,534
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		15		—		—		15
Total Non-owner-occupied	$	715,475	$	917,810	$	569,503	$	417,488	$	117,616	$	305,540	$	10,517	$	—	$	3,053,949
Farmland
Non-watch list – Pass	$	61,946	$	43,434	$	227,530	$	17,769	$	3,084	$	23,389	$	78,433	$	226	$	455,811
Watch – Pass		1,628		1,732		1,079		103		—		2,123		—		—		6,665
Special Mention		243		—		1,151		—		—		—		—		—		1,394
Substandard		19,960		4,023		39		6,535		13,432		794		7,939		—		52,722
Doubtful		—		—		—		—		—		—		—		—		—
Total Farmland	$	83,777	$	49,189	$	229,799	$	24,407	$	16,516	$	26,306	$	86,372	$	226	$	516,592
5+ Multi-family
Non-watch list – Pass	$	33,595	$	30,206	$	71,213	$	19,100	$	1,651	$	6,126	$	3,526	$	—	$	165,417
Watch – Pass		—		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total 5+ Multi-family	$	33,595	$	30,206	$	71,213	$	19,100	$	1,651	$	6,126	$	3,526	$	—	$	165,417
1-4 Family construction
Non-watch list – Pass	$	45,302	$	33,332	$	—	$	—	$	—	$	—	$	1,226	$	—	$	79,860
Watch – Pass		—		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total 1-4 Family construction	$	45,302	$	33,332	$	—	$	—	$	—	$	—	$	1,226	$	—	$	79,860
General construction
Non-watch list – Pass	$	320,538	$	710,186	$	52,217	$	44,936	$	—	$	395	$	10,478	$	—	$	1,138,750
Watch – Pass		—		15,424		—		—		—		—		—		—		15,424
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		11,466		—		—		—		16		—		—		11,482
Doubtful		—		—		—		86		—		—		—		—		86
Total General construction	$	320,538	$	737,076	$	52,217	$	45,022	$	—	$	411	$	10,478	$	—	$	1,165,742

	December 31, 2021
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2021		2020		2019		2018		2017		Prior						Total
Owner-occupied
Non-watch list – Pass	$	679,662	$	507,220	$	208,376	$	174,352	$	89,588	$	154,920	$	11,627	$	—	$	1,825,745
Watch – Pass		191		10,891		16,493		1,055		1,143		1,572		—		—		31,345
Special Mention		93		1,304		—		—		—		—		—		—		1,397
Substandard		189		33		1,762		2,169		808		2,990		100		—		8,051
Doubtful		—		—		—		—		—		—		—		—		—
Total Owner-occupied	$	680,135	$	519,448	$	226,631	$	177,576	$	91,539	$	159,482	$	11,727	$	—	$	1,866,538
Non-owner-occupied
Non-watch list – Pass	$	976,097	$	679,313	$	536,084	$	143,243	$	129,820	$	219,701	$	10,969	$	—	$	2,695,227
Watch – Pass		57,052		1,277		55,802		19,248		5,280		2,587		—		—		141,246
Special Mention		24,876		8,577		—		—		—		36,223		—		—		69,676
Substandard		—		—		—		—		—		30		—		—		30
Doubtful		—		—		—		—		—		—		—		—		—
Total Non-owner-occupied	$	1,058,025	$	689,167	$	591,886	$	162,491	$	135,100	$	258,541	$	10,969	$	—	$	2,906,179
Farmland
Non-watch list – Pass	$	40,526	$	246,955	$	26,332	$	2,147	$	19,199	$	29,136	$	28,276	$	—	$	392,571
Watch – Pass		2,263		10,177		—		823		213		4,889		—		—		18,365
Special Mention		3,800		—		6,875		13,983		517		—		8,999		—		34,174
Substandard		14,916		16,492		938		16		—		833		964		999		35,158
Doubtful		—		—		—		—		—		—		—		—		—
Total Farmland	$	61,505	$	273,624	$	34,145	$	16,969	$	19,929	$	34,858	$	38,239	$	999	$	480,268
5+ Multi-family
Non-watch list – Pass	$	58,268	$	95,024	$	41,426	$	1,206	$	511	$	6,820	$	2,057	$	—	$	205,312
Watch – Pass		—		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total 5+ Multi-family	$	58,268	$	95,024	$	41,426	$	1,206	$	511	$	6,820	$	2,057	$	—	$	205,312
1-4 Family construction
Non-watch list – Pass	$	53,004	$	4,933	$	17,333	$	—	$	—	$	—	$	985	$	—	$	76,255
Watch – Pass		—		—		—		—		—		—		—		—		—
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—		—
Total 1-4 Family construction	$	53,004	$	4,933	$	17,333	$	—	$	—	$	—	$	985	$	—	$	76,255
General construction
Non-watch list – Pass	$	436,696	$	160,553	$	62,675	$	38,505	$	203	$	239	$	29,219	$	—	$	728,090
Watch – Pass		3,277		—		—		—		—		—		—		—		3,277
Special Mention		—		—		—		—		—		—		—		—		—
Substandard		—		—		1,522		—		—		17		—		—		1,539
Doubtful		—		—		86		—		—		—		—		—		86
Total General construction	$	439,973	$	160,553	$	64,283	$	38,505	$	203	$	256	$	29,219	$	—	$	732,992

A discussion of the credit quality indicators that impact each type of collateral securing Consumer real estate loans is included below:

HELOC HELOC loans are revolving lines of credit secured by 1-4 family residential property. The primary risk is the borrower’s inability to repay debt. Revolving notes are often associated with HELOCs that can be secured by real estate without a 1st lien priority. Collateral is susceptible to market volatility impacting home values or economic downturns.

First lien: 1-4 family First lien 1-4 family loans are secured by a first lien on 1-4 family residential property. These term loans carry longer maturities and amortizations. The longer tenure exposes the borrower to multiple economic cycles, coupled with longer amortizations that result in smaller principal reduction early in the life of the loan. Collateral is susceptible to market volatility impacting home values.

Junior lien: 1-4 family Junior lien 1-4 family loans are secured by a junior lien on 1-4 family residential property. The Company’s primary risk is the borrower’s inability to repay debt and not being in a first lien position. Collateral is susceptible to market volatility impacting home values or economic downturns.

A borrower is considered non-performing if the Company has ceased the recognition of interest and the loan is placed on non-accrual. Charge-offs and borrower performance are tracked on a loan origination vintage basis. Certain vintages, based on their maturation cycle, could be at higher risk due to collateral-based risk factors.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of September 30, 2022 and December 31, 2021 (in thousands):

	September 30, 2022
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2022		2021		2020		2019		2018		Prior						Total
HELOC
Performing	$	127	$	—	$	557	$	144	$	155	$	4,288	$	329,139	$	686	$	335,096
Non-performing		—		—		82		136		357		1,358		89		529		2,551
Total HELOC	$	127	$	—	$	639	$	280	$	512	$	5,646	$	329,228	$	1,215	$	337,647
First lien: 1-4 family
Performing	$	518,033	$	758,989	$	625,406	$	175,525	$	49,339	$	140,277	$	13	$	—	$	2,267,582
Non-performing		26		95		52		419		—		1,698		—		—		2,290
Total First lien: 1-4 family	$	518,059	$	759,084	$	625,458	$	175,944	$	49,339	$	141,975	$	13	$	—	$	2,269,872
Junior lien: 1-4 family
Performing	$	7,624	$	8,641	$	5,332	$	2,689	$	978	$	1,591	$	82	$	—	$	26,937
Non-performing		—		—		—		—		—		62		—		—		62
Total Junior lien: 1-4 family	$	7,624	$	8,641	$	5,332	$	2,689	$	978	$	1,653	$	82	$	—	$	26,999

	December 31, 2021
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2021		2020		2019		2018		2017		Prior						Total
HELOC
Performing	$	248	$	531	$	188	$	165	$	381	$	4,956	$	320,241	$	2,440	$	329,150
Non-performing		—		16		139		409		265		1,407		169		83		2,488
Total HELOC	$	248	$	547	$	327	$	574	$	646	$	6,363	$	320,410	$	2,523	$	331,638
First lien: 1-4 family
Performing	$	830,513	$	712,194	$	199,949	$	58,585	$	61,233	$	102,194	$	19	$	—	$	1,964,687
Non-performing		—		70		218		149		408		803		—		—		1,648
Total First lien: 1-4 family	$	830,513	$	712,264	$	200,167	$	58,734	$	61,641	$	102,997	$	19	$	—	$	1,966,335
Junior lien: 1-4 family
Performing	$	9,114	$	6,299	$	3,361	$	1,143	$	800	$	1,251	$	17	$	—	$	21,985
Non-performing		—		—		—		7		20		48		—		—		75
Total Junior lien: 1-4 family	$	9,114	$	6,299	$	3,361	$	1,150	$	820	$	1,299	$	17	$	—	$	22,060

A discussion of the credit quality indicators that impact each type of collateral securing Consumer loans is included below:

Revolving line Consumer Revolving lines of credit are secured by consumer assets other than real estate. The primary risk associated with this collateral is related to market volatility and the value of the underlying financial assets.

Auto Direct consumer auto loans are secured by new and used consumer vehicles. The primary risk with this collateral class is the rate at which the collateral depreciates.

Other This category includes Other consumer loans made to an individual. The primary risk for this category is for those loans where the loan is unsecured. This collateral type also includes other unsecured lending such as consumer overdrafts.

The following tables provide a summary of the amortized cost balance by collateral type and risk rating as of September 30, 2022 and December 31, 2021 (in thousands):

	September 30, 2022
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2022		2021		2020		2019		2018		Prior						Total
Revolving line
Performing	$	469	$	585	$	—	$	—	$	—	$	—	$	54,122	$	550	$	55,726
Non-performing		—		—		—		—		—		—		488		—		488
Total Revolving line	$	469	$	585	$	—	$	—	$	—	$	—	$	54,610	$	550	$	56,214
Auto
Performing	$	7,346	$	7,381	$	5,020	$	3,278	$	451	$	222	$	—	$	—	$	23,698
Non-performing		—		21		2		27		—		—		—		—		50
Total Auto	$	7,346	$	7,402	$	5,022	$	3,305	$	451	$	222	$	—	$	—	$	23,748
Other
Performing	$	17,407	$	28,035	$	1,250	$	992	$	1,204	$	626	$	5,334	$	—	$	54,848
Non-performing		15		—		—		—		—		—		—		—		15
Total Other	$	17,422	$	28,035	$	1,250	$	992	$	1,204	$	626	$	5,334	$	—	$	54,863

	December 31, 2021
													Amortized Cost - Revolving Loans		Amortized Cost - Revolving Loans Converted to Term Loans




Risk by Collateral	Amortized Cost Basis by Origination Year - Term Loans
Risk by Collateral	2021		2020		2019		2018		2017		Prior						Total
Revolving line
Performing	$	974	$	—	$	—	$	—	$	—	$	—	$	60,049	$	120	$	61,143
Non-performing		—		—		—		—		—		—		—		—		—
Total Revolving line	$	974	$	—	$	—	$	—	$	—	$	—	$	60,049	$	120	$	61,143
Auto
Performing	$	9,886	$	7,775	$	5,424	$	1,107	$	479	$	220	$	—	$	—	$	24,891
Non-performing		—		—		38		—		—		—		—		—		38
Total Auto	$	9,886	$	7,775	$	5,462	$	1,107	$	479	$	220	$	—	$	—	$	24,929
Other
Performing	$	31,391	$	2,025	$	1,949	$	1,525	$	2,542	$	704	$	2,889	$	—	$	43,025
Non-performing		—		16		—		18		—		4		—		—		38
Total Other	$	31,391	$	2,041	$	1,949	$	1,543	$	2,542	$	708	$	2,889	$	—	$	43,063

A discussion of the credit quality indicators that impact Credit card loans is included below:

Consumer Consumer credit card loans are revolving loans made to individuals. The primary risk associated with this collateral class is credit card debt is generally unsecured; therefore, repayment depends primarily on a borrower’s willingness and capacity to repay. The highly competitive environment for credit card lending provides consumers with ample opportunity to hold several credit cards from different issuers and to pay only minimum monthly payments on outstanding balances. In such an environment, borrowers may become over-extended and unable to repay, particularly in times of an economic downturn or a personal catastrophic event.

The consumer credit card portfolio is segmented by borrower payment activity. Transactors are defined as accounts that pay off their balance by the end of each statement cycle. Revolvers are defined as an account that carries a balance from statement cycle to the next. These accounts incur monthly finance charges, and, sometimes, late fees. Revolvers are inherently higher risk and are tracked by credit score.

Commercial Commercial credit card loans are revolving loans made to small and commercial businesses. The primary risk associated with this collateral class is credit card debt is generally unsecured; therefore, repayment depends primarily on a borrower’s willingness and capacity to repay. Borrowers may become over-extended and unable to repay, particularly in times of an economic downturn or a catastrophic event.

The commercial credit card portfolio is segmented by current and past due payment status. A borrower is past due after 30 days. In general, commercial credit card customers do not have incentive to hold a balance resulting in paying interest on credit card debt as commercial customers will typically have other debt obligations with lower interest rates in which they can utilize for capital.

The following table provides a summary of the amortized cost balance of consumer credit cards by risk rating as of September 30, 2022 and December 31, 2021 (in thousands):

The following table provides a summary of the amortized cost balance of commercial credit cards by risk rating as of September 30, 2022 and December 31, 2021 (in thousands):

A discussion of the credit quality indicators that impact each type of collateral securing Leases and other loans is included below:

Leases Leases are either loans to individuals for household, family and other personal expenditures or are loans related to all other direct financing and leveraged leases on property for leasing to lessees other than for household, family and other personal expenditure purposes. All leases are secured by the lease between the lessor and the lessee. These assignments grant the creditor a security interest in the rent stream from any lease, an important source of cash to pay the note in case of the borrower’s default.

Other Other loans are loans that are obligations of states and political subdivisions in the U.S., loans to non-depository financial institutions, loans for purchasing or carrying securities, or all other non-consumer loans. Risk associated with other loans is tied to the underlying collateral by each type of loan. Collateral is generally equipment, accounts receivable, inventory, 1-4 family residential construction and susceptible to the same risks mentioned with those collateral types previously. Other risks consist of collateral that is secured by the stock of a non-depository financial institution, which can be unlisted stock with a limited market for the stock, or volatility of asset values driven by market performance.

Based on the factors noted above for each type of collateral, the Company assigns risk ratings to borrowers based on their most recently assessed financial position.

The following table provides a summary of the amortized cost balance by collateral type and risk rating as of September 30, 2022 and December 31, 2021 (in thousands):

The allowance for credit losses (ACL) is a valuation account that is deducted from loans’ and held-to-maturity (HTM) securities’ amortized cost bases to present the net amount expected to be collected on the instrument. Loans and HTM securities are charged off against the ACL when management believes the balance has become uncollectible. Expected recoveries are included in the allowance and do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.

Management estimates the allowance balance using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable economic forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses and is tracked over an economic cycle to capture a ‘through the cycle’ loss history. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in portfolio industry-based segmentation,

risk rating and credit score changes, average prepayment rates, changes in environmental conditions, or other relevant factors. For economic forecasts, the Company uses the Moody’s baseline scenario. The Company has developed a dynamic reasonable and supportable forecast period that ranges from one to three years and changes based on economic conditions. Due to current economic conditions, the Company’s reasonable and supportable forecast period is one year. After the reasonable and supportable forecast period, the Company reverts to historical losses. The reversion method applied to each portfolio can either be cliff or straight-line over four quarters.

The ACL is measured on a collective (pool) basis when similar risk characteristics exists. The ACL also incorporates qualitative factors which represent adjustments to historical credit loss experience for items such as concentrations of credit and results of internal loan review. The Company has identified the following portfolio segments and measures the allowance for credit losses using the following methods. The Company’s portfolio segmentation consists of Commercial and industrial, Specialty lending, Commercial real estate, Consumer real estate, Consumer, Credit cards, Leases and other, and Held-to-maturity securities. Multiple modeling techniques are used to measure credit losses based on the portfolio.

The ACL for Commercial & industrial and Leases and other segments are measured using a probability of default and loss given default method. Primary risk drivers within the segment are risk ratings of the individual loans along with changes of macro-economic variables such as interest rates and farm income. The ACL for commercial & industrial loans is calculated by modeling probability of default (PD) over future periods multiplied by historical loss given default rates (LGD) multiplied by contractual exposure at default minus any estimated prepayments and charge offs.

Collateral positions for Specialty lending loans are continuously monitored by the Company and the borrower is required to continually adjust the amount of collateral securing the loan. Credit losses are measured for any position where the amortized cost basis is greater than the fair value of the collateral. The ACL for specialty lending loans is calculated by using a bottom-up approach comparing collateral values to outstanding balances.

The ACL for the Commercial real estate segment is measured using a PD and LGD method. Primary risk characteristics within the segment are risk ratings of the individual loans, along with changes of macro-economic variables, such as interest rates, CRE price index, median household income, construction activity, farm income, and vacancy rates. The ACL for commercial real estate loans is calculated by modeling PD over future periods based on peer bank data. The PD loss rate is then multiplied by historical LGD multiplied by contractual exposure at default minus any estimated prepayments and charge offs.

The ACL for the Consumer real estate and Consumer segments are measured using an origination vintage loss rate method applied to the loans’ amortized cost balance. The primary risk driver within the segments is year of origination along with changes of macro-economic variables such as unemployment and the home price index.

The Credit card segment contains both consumer and commercial credit cards. The ACL for Consumer credit cards is measured using a PD and LGD method for Revolvers and average historical loss rates across a defined lookback period for Transactors. The PD and LGD method used for Revolvers is similar in nature to the method used in the Commercial & industrial and Commercial real estate segments. Primary risk drivers within the segment are credit ratings of the individual card holders along with changes of macro-economic variables such as unemployment and retail sales. The ACL for Commercial credit cards is measured using roll-rate loss rate method based on days past due.

The ACL for the State and political HTM securities segment is measured using a loss rate method based on historical bond rating transitions. Primary risk drivers within the segment are bond ratings in the portfolio along with changes of macro-economic conditions. There is no ACL for the U.S. Agency and GSE mortgage-backed HTM securities portfolios as they are considered to be agency-backed securities with no risk of loss as they are either explicitly or implicitly guaranteed by the U.S. government. For further discussion on these securities, including the aging and amortized cost balance of HTM securities, see Note 5, “Securities.”

See the credit quality indicators presented previously for a summary of current risk in the Company’s portfolio. Changes in economic forecasts will affect all portfolio segments, updated financial records from borrowers will affect portfolio segments by risk rating, updated credit scores will affect consumer credit cards,

payment performance will affect consumer and commercial credit card portfolio segments, and updated bond credit ratings will affect held-to-maturity securities. The Company actively monitors all credit quality indicators for risk changes that will influence the current estimate.

Expected credit losses are estimated over the contractual term of the loans, adjusted for prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a TDR will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancelable by the Company.

Credit card receivables do not have stated maturities. In determining the estimated life of a credit card receivable, management first estimates the future cash flows expected to be received and then applies those expected future cash flows to the credit card balance. Expected credit losses for credit cards are determined by estimating the amount and timing of principal payments expected to be received as payment for the balance outstanding as of the reporting period until the expected payments have been fully allocated. The ACL is recorded for the excess of the balance outstanding as of the reporting period over the expected principal payments.

Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually include loans on nonaccrual, loans classified as TDRs, or any loans specifically identified, and are excluded from the collective evaluation. When it is determined that payment of interest or recovery of all principal is questionable, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for undiscounted selling costs as appropriate. All loans are classified as collateral dependent if placed on non-accrual or are considered to be a TDR.

A loan modification is considered a TDR when a concession has been granted to a debtor experiencing financial difficulties. The allowance for credit loss on a TDR is measured using the discounted cash flow method. When the value of a concession is measured using the discounted cash flow method, the allowance for credit loss is determined by discounting the expected future cash flows, including contractual payments and value of collateral at termination, at the original effective interest rate of the loan.

This table provides a rollforward of the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2022 and September 30, 2021 (in thousands):

	Three Months Ended September 30, 2022
	Commercial and industrial		Specialty lending			Commercial real estate		Consumer real estate		Consumer			Credit cards			Leases and other			Total - Loans			HTM		Total
Allowance for credit losses:
Beginning balance	$	112,942	$	1,133		$	37,240	$	4,565	$	863		$	5,579		$	2,024		$	164,346		$	2,259	$	166,605
Charge-offs		—		—			—		—		(241	)		(1,852	)		—			(2,093	)		—		(2,093	)
Recoveries		29		429			—		11		29			422			—			920			—		920
Provision		20,134		(1,562	)		909		422		(223	)		2,426			(366	)		21,740			260		22,000
Ending balance - ACL	$	133,105	$	—		$	38,149	$	4,998	$	428		$	6,575		$	1,658		$	184,913		$	2,519	$	187,432
Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance	$	2,178	$	186		$	418	$	124	$	13		$	—		$	62		$	2,981		$	107	$	3,088
Provision		—		—			—		—		—			—			—			—			—		—
Ending balance - ACL on off-balance sheet	$	2,178	$	186		$	418	$	124	$	13		$	—		$	62		$	2,981		$	107	$	3,088

	Three Months Ended September 30, 2021
	Commercial and industrial			Specialty lending			Commercial real estate			Consumer real estate			Consumer			Credit cards			Leases and other			Total - Loans			HTM			Total
Allowance for credit losses:
Beginning balance	$	118,121		$	5,901		$	56,734		$	5,807		$	857		$	11,743		$	1,400		$	200,563		$	2,836		$	203,399
Charge-offs		(1,592	)		—			(77	)		—			(1,782	)		(1,617	)		—			(5,068	)		—			(5,068	)
Recoveries		1,165			3			213			16			83			461			—			1,941			—			1,941
Provision		(12,559	)		816			10,663			360			1,856			(4,265	)		(151	)		(3,280	)		(720	)		(4,000	)
Ending balance - ACL	$	105,135		$	6,720		$	67,533		$	6,183		$	1,014		$	6,322		$	1,249		$	194,156		$	2,116		$	196,272
Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance	$	2,344		$	213		$	326		$	142		$	208		$	—		$	264		$	3,497		$	91		$	3,588
Provision		(605	)		(53	)		154			(36	)		(208	)		—			(249	)		(997	)		(3	)		(1,000	)
Ending balance - ACL on off-balance sheet	$	1,739		$	160		$	480		$	106		$	—		$	—		$	15		$	2,500		$	88		$	2,588

	Nine Months Ended September 30, 2022
	Commercial and industrial			Specialty lending			Commercial real estate			Consumer real estate			Consumer			Credit cards			Leases and other			Total - Loans			HTM		Total
Allowance for credit losses:
Beginning balance	$	123,732		$	1,738		$	56,265		$	3,921		$	845		$	6,075		$	2,195		$	194,771		$	1,940	$	196,711
Charge-offs		(36,217	)		—			—			(57	)		(560	)		(4,785	)		—			(41,619	)		—		(41,619	)
Recoveries		1,419			430			385			121			89			1,496			—			3,940			—		3,940
Provision		44,171			(2,168	)		(18,501	)		1,013			54			3,789			(537	)		27,821			579		28,400
Ending balance - ACL	$	133,105		$	—		$	38,149		$	4,998		$	428		$	6,575		$	1,658		$	184,913		$	2,519	$	187,432
Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance	$	1,739		$	160		$	480		$	106		$	—		$	—		$	15		$	2,500		$	88	$	2,588
Provision		439			26			(62	)		18			13			—			47			481			19		500
Ending balance - ACL on off-balance sheet	$	2,178		$	186		$	418		$	124		$	13		$	—		$	62		$	2,981		$	107	$	3,088

	Nine Months Ended September 30, 2021
	Commercial and industrial			Specialty lending			Commercial real estate			Consumer real estate			Consumer			Credit cards			Leases and other			Total - Loans			HTM			Total
Allowance for credit losses:
Beginning balance	$	122,700		$	5,219		$	61,931		$	6,586		$	1,480		$	15,786		$	2,271		$	215,973		$	2,610		$	218,583
Charge-offs		(6,311	)		(31,945	)		(77	)		(86	)		(2,030	)		(4,786	)		(8	)		(45,243	)		—			(45,243	)
Recoveries		4,926			154			1,560			129			170			1,475			18			8,432			—			8,432
Provision		(16,180	)		33,292			4,119			(446	)		1,394			(6,153	)		(1,032	)		14,994			(494	)		14,500
Ending balance - ACL	$	105,135		$	6,720		$	67,533		$	6,183		$	1,014		$	6,322		$	1,249		$	194,156		$	2,116		$	196,272
Allowance for credit losses on off-balance sheet credit exposures:
Beginning balance	$	3,859		$	287		$	447		$	145		$	381		$	—		$	414		$	5,533		$	55		$	5,588
Provision		(2,120	)		(127	)		33			(39	)		(381	)		—			(399	)		(3,033	)		33			(3,000	)
Ending balance - ACL on off-balance sheet	$	1,739		$	160		$	480		$	106		$	—		$	—		$	15		$	2,500		$	88		$	2,588

The allowance for credit losses on off-balance sheet credit exposures is recorded in the Accrued expenses and taxes line of the Company’s Consolidated Balance Sheets. See Note 10 “Commitments, Contingencies and Guarantees.”

The following tables provide the amortized cost balance of financial assets considered collateral dependent as of September 30, 2022 and December 31, 2021 (in thousands):

	September 30, 2022
Loan Segment and Type	Amortized Cost of Collateral Dependent Assets		Related Allowance for Credit Losses		Amortized Cost of Collateral Dependent Assets with no related Allowance
Commercial and industrial:
Equipment/Accounts Receivable/Inventory	$	14,319	$	794	$	11,791
Agriculture		—		—		—
Total Commercial and industrial		14,319		794		11,791
Specialty lending:
Asset-based lending		—		—		—
Total Specialty lending		—		—		—
Commercial real estate:
Owner-occupied		2,261		—		2,261
Non-owner-occupied		—		—		—
Farmland		409		—		409
5+ Multi-family		—		—		—
1-4 Family construction		—		—		—
General construction		102		—		102
Total Commercial real estate		2,772		—		2,772
Consumer real estate:
HELOC		2,550		—		2,550
First lien: 1-4 family		2,290		17		1,623
Junior lien: 1-4 family		62		—		62
Total Consumer real estate		4,902		17		4,235
Consumer:
Revolving line		488		—		488
Auto		50		—		50
Other		15		—		15
Total Consumer		553		—		553
Leases and other:
Leases		—		—		—
Other		24		—		24
Total Leases and other		24		—		24
Total loans	$	22,570	$	811	$	19,375

	December 31, 2021
Loan Segment and Type	Amortized Cost of Collateral Dependent Assets		Related Allowance for Credit Losses		Amortized Cost of Collateral Dependent Assets with no related Allowance
Commercial and industrial:
Equipment/Accounts Receivable/Inventory	$	82,845	$	2,421	$	76,493
Agriculture		—		—		—
Total Commercial and industrial		82,845		2,421		76,493
Specialty lending:
Asset-based lending		—		—		—
Factoring		—		—		—
Total Specialty lending		—		—		—
Commercial real estate:
Owner-occupied		2,764		—		2,764
Non-owner-occupied		—		—		—
Farmland		487		—		487
5+ Multi-family		—		—		—
1-4 Family construction		—		—		—
General construction		1,626		—		1,626
Total Commercial real estate		4,877		—		4,877
Consumer real estate:
HELOC		2,488		—		2,488
First lien: 1-4 family		1,647		—		1,647
Junior lien: 1-4 family		75		—		75
Total Consumer real estate		4,210		—		4,210
Consumer:
Revolving line		—		—		—
Auto		38		—		38
Other		37		—		37
Total Consumer		75		—		75
Leases and other:
Leases		—		—		—
Other		25		—		25
Total Leases and other		25		—		25
Total loans	$	92,032	$	2,421	$	85,680

A loan modification is considered a TDR when a concession has been granted to a debtor experiencing financial difficulties. The Company’s modifications generally include interest rate adjustments, principal reductions, and amortization and maturity date extensions. These modifications allow the debtor short-term cash relief to allow them to improve their financial condition. The Company’s restructured loans are considered collateral dependent and evaluated as part of the allowance for credit loss as described above in the Allowance for Credit Losses section of this note.

The Company had no commitments to lend to borrowers with loan modifications classified as TDRs as of September 30, 2022 and September 30, 2021. The Company monitors loan payments on an on-going basis to determine if a loan is considered to have a payment default. Determination of payment default involves analyzing the economic conditions that exist for each customer and their ability to generate positive cash flows during the loan term.

For the three-month period ended September 30, 2022, the Company had no new TDRs. For the nine-month period ended September 30, 2022, the Company had two commercial TDRs with a pre-modification loan balance of $5.1 million and a post-modification loan balance of $4.3 million. For the three and nine-month periods ended September 30, 2021, the Company had no new TDRs. For the three and nine-month periods ended September 30, 2022 and September 30, 2021, the Company had no TDRs for which there was a payment default within the 12 months following the restructure date.