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LOANS, ALLOWANCE FOR CREDIT LOSSES - LOANS, AND CREDIT QUALITY (Tables)
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Schedule of loan composition by portfolio segment
The loan composition was as follows.
 December 31, 2021December 31, 2020
(in thousands)Amount% of TotalAmount% of Total
Commercial & industrial$1,017,725 22 %$750,718 27 %
Paycheck Protection Program (“PPP”) loans24,531 1 186,016 7 
Owner-occupied commercial real estate (“CRE”)787,189 17 521,300 19 
Agricultural794,728 17 109,629 4 
CRE investment818,061 18 460,721 16 
Construction & land development213,035 5 131,283 5 
Residential construction70,353 1 41,707 1 
Residential first mortgage713,983 15 444,155 16 
Residential junior mortgage131,424 3 111,877 4 
Retail & other50,807 1 31,695 1 
   Loans4,621,836 100 %2,789,101 100 %
Less ACL-Loans49,672 32,173 
   Loans, net$4,572,164 $2,756,928 
ACL-Loans to loans1.07 %1.15 %
Schedule of changes in the allowance for credit losses - loans by portfolio segment
A roll forward of the allowance for credit losses - loans was as follows.
 Years Ended December 31,
(in thousands)202120202019
Beginning balance$32,173 $13,972 $13,153 
Adoption of CECL— 8,488 — 
Initial PCD ACL— 797 — 
   Total impact for adoption of CECL— 9,285 — 
ACL on PCD loans acquired5,159 — — 
Provision for credit losses12,500 10,300 1,200 
Charge-offs(513)(1,689)(927)
Recoveries353 305 546 
    Net (charge-offs) recoveries(160)(1,384)(381)
Ending balance$49,672 $32,173 $13,972 
The following table presents the balance and activity in the ACL-Loans by portfolio segment.
Year Ended December 31, 2021
(in thousands)Commercial
& industrial		Owner-
occupied
CRE		AgriculturalCRE
investment		Construction & land
development		Residential
construction		Residential
first mortgage		Residential
junior
mortgage		Retail
& other		Total
ACL-Loans *
Beginning balance$11,644 $5,872 $1,395 $5,441 $984 $421 $4,773 $1,086 $557 $32,173 
ACL on PCD loans723 1,045 2,585 415 103 — 272 13 3 5,159 
Provision196 305 5,615 2,608 725 479 1,892 237 443 12,500 
Charge-offs(242)— (48)(4)— — (113)— (106)(513)
Recoveries292 — — 2 — — 20 4 35 353 
Net (charge-offs) recoveries50 — (48)(2)— — (93)4 (71)(160)
Ending balance$12,613 $7,222 $9,547 $8,462 $1,812 $900 $6,844 $1,340 $932 $49,672 
As % of ACL-Loans25 %14 %19 %17 %4 %2 %14 %3 %2 %100 %
* The PPP loans are fully guaranteed by the SBA; thus, no ACL-Loans has been allocated to these loans.

For comparison purposes, the following table presents the balance and activity in the ACL-Loans by portfolio segment for the prior year-end period.
Year Ended December 31, 2020
(in thousands)Commercial
& industrial		Owner-
occupied
CRE		AgriculturalCRE
investment		Construction & land
development		Residential
construction		Residential
first mortgage		Residential
junior
mortgage		Retail
& other		Total
ACL-Loans *
Beginning balance$5,471 $3,010 $579 $1,600 $414 $368 $1,669 $517 $344 $13,972 
Adoption of CECL2,962 1,249 361 1,970 51 124 1,286 351 134 8,488 
Initial PCD ACL797 — — — — — — — — 797 
Provision3,106 2,062 455 2,061 519 (71)1,809 151 208 10,300 
Charge-offs(812)(530)— (190)— — (2)— (155)(1,689)
Recoveries120 81 — — — — 11 67 26 305 
Net (charge-offs) recoveries(692)(449)— (190)— — 9 67 (129)(1,384)
Ending balance$11,644 $5,872 $1,395 $5,441 $984 $421 $4,773 $1,086 $557 $32,173 
As % of ACL-Loans36 %18 %4 %17 %3 %1 %15 %4 %2 %100 %
Schedule of provision of credit losses The following table presents the components of the provision for credit losses.
Years Ended December 31,
(in thousands)202120202019
Provision for credit losses on:
Loans$12,500 $10,300 $1,200 
Unfunded commitments2,400 — — 
Investment securities— — — 
  Total provision for credit losses$14,900 $10,300 $1,200 
Schedule of collateral dependent loans by portfolio segment The following table presents collateral dependent loans by portfolio segment and collateral type, including those loans with and without a related allowance allocation.
December 31, 2021
Collateral Type
(in thousands)Real EstateOther Business AssetsTotalWithout an AllowanceWith an AllowanceAllowance Allocation
Commercial & industrial$— $2,296 $2,296 $1,842 $454 $258 
PPP loans— — — — — — 
Owner-occupied CRE3,537 — 3,537 1,315 2,222 552 
Agricultural19,637 8,518 28,155 25,310 2,845 841 
CRE investment3,000 — 3,000 1,684 1,316 407 
Construction & land development1,038 — 1,038 655 383 211 
Residential construction— — — — — — 
Residential first mortgage473 — 473 473 — — 
Residential junior mortgage— — — — — — 
Retail & other— — — — — — 
Total loans$27,685 $10,814 $38,499 $31,279 $7,220 $2,269 
December 31, 2020Collateral Type
(in thousands)Real EstateOther Business AssetsTotalWithout an AllowanceWith an AllowanceAllowance Allocation
Commercial & industrial$— $2,195 $2,195 $501 $1,694 $1,241 
PPP loans— — — — — — 
Owner-occupied CRE3,519 — 3,519 3,519 — — 
Agricultural584 797 1,381 1,378 3 3 
CRE investment1,474 — 1,474 1,474 — — 
Construction & land development308 — 308 308 — — 
Residential construction— — — — — — 
Residential first mortgage— — — — — — 
Residential junior mortgage— — — — — — 
Retail & other— — — — — — 
Total loans$5,885 $2,992 $8,877 $7,180 $1,697 $1,244 
Schedule of past due loans by portfolio segment
The following tables present past due loans by portfolio segment.
 December 31, 2021
(in thousands)30-89 Days Past
Due (accruing)		90 Days & Over
or nonaccrual		CurrentTotal
Commercial & industrial$94 $1,908 $1,015,723 $1,017,725 
PPP loans— — 24,531 24,531 
Owner-occupied CRE— 4,220 782,969 787,189 
Agricultural108 28,367 766,253 794,728 
CRE investment114 4,119 813,828 818,061 
Construction & land development— 1,071 211,964 213,035 
Residential construction246 — 70,107 70,353 
Residential first mortgage2,592 4,132 707,259 713,983 
Residential junior mortgage23 243 131,158 131,424 
Retail & other115 94 50,598 50,807 
Total loans$3,292 $44,154 $4,574,390 $4,621,836 
Percent of total loans0.1 %0.9 %99.0 %100.0 %
 
 December 31, 2020
(in thousands)30-89 Days Past
Due (accruing)		90 Days & Over
or nonaccrual		CurrentTotal
Commercial & industrial$— $2,646 $748,072 $750,718 
PPP loans— — 186,016 186,016 
Owner-occupied CRE— 1,869 519,431 521,300 
Agricultural7 1,830 107,792 109,629 
CRE investment— 1,488 459,233 460,721 
Construction & land development— 327 130,956 131,283 
Residential construction— — 41,707 41,707 
Residential first mortgage613 823 442,719 444,155 
Residential junior mortgage43 384 111,450 111,877 
Retail & other102 88 31,505 31,695 
Total loans$765 $9,455 $2,778,881 $2,789,101 
Percent of total loans— %0.4 %99.6 %100.0 %
Schedule of nonaccrual loans by portfolio segment
The following table presents nonaccrual loans by portfolio segment. The nonaccrual loans without a related allowance for credit losses have been reflected in the collateral dependent loans table above.
 Total Nonaccrual Loans
(in thousands)
December 31, 2021
% to Total
December 31, 2020
% to Total
Commercial & industrial$1,908 4 %$2,646 28 %
PPP loans— — — — 
Owner-occupied CRE4,220 10 1,869 20 
Agricultural28,367 64 1,830 19 
CRE investment4,119 9 1,488 16 
Construction & land development1,071 3 327 3 
Residential construction— — — — 
Residential first mortgage4,132 9 823 9 
Residential junior mortgage243 1 384 4 
Retail & other94 — 88 1 
   Nonaccrual loans$44,154 100 %$9,455 100 %
Percent of total loans0.9 %0.4 %
Schedule of total loans by risk categories and year of origination
The following tables present total loans by risk categories and year of origination. Loans acquired from Mackinac and County have been included in the December 31, 2021 table based upon the actual origination date.
December 31, 2021
Amortized Cost Basis by Origination Year
(in thousands)20212020201920182017PriorRevolvingRevolving to TermTOTAL
Commercial & industrial (a)
Grades 1-4$282,369 $146,131 $99,702 $69,478 $50,557 $71,247 $288,115 $— $1,007,599 
Grade 51,685 1,905 4,369 5,809 4,860 2,097 8,408 — 29,133 
Grade 6598 54 16 687 67 91 391 — 1,904 
Grade 7— 440 692 337 976 743 432 — 3,620 
Total$284,652 $148,530 $104,779 $76,311 $56,460 $74,178 $297,346 $— $1,042,256 
Owner-occupied CRE
Grades 1-4$154,578 $94,300 $105,226 $92,128 $75,583 $202,816 $6,945 $— $731,576 
Grade 57,753 3,019 6,529 2,543 2,515 13,905 656 — 36,920 
Grade 6— — 1,642 — 20 805 — — 2,467 
Grade 7— 3,124 1,914 — 3,526 6,672 990 — 16,226 
Total$162,331 $100,443 $115,311 $94,671 $81,644 $224,198 $8,591 $— $787,189 
Agricultural
Grades 1-4$128,404 $87,844 $28,416 $22,887 $36,298 $86,104 $235,743 $— $625,696 
Grade 514,796 4,183 2,391 915 3,912 48,373 26,778 — 101,348 
Grade 638 38 36 — 86 1,049 85 — 1,332 
Grade 73,284 3,971 3,490 4,201 7,215 31,672 12,519 — 66,352 
Total$146,522 $96,036 $34,333 $28,003 $47,511 $167,198 $275,125 $— $794,728 
CRE investment
Grades 1-4$192,274 $139,127 $136,306 $56,148 $65,026 $162,991 $11,289 $— $763,161 
Grade 511,081 3,001 6,497 3,945 6,726 17,527 — — 48,777 
Grade 6— — — — — — — — — 
Grade 7— — 456 141 1,352 3,943 231 — 6,123 
Total$203,355 $142,128 $143,259 $60,234 $73,104 $184,461 $11,520 $— $818,061 
Construction & land development
Grades 1-4$81,891 $72,415 $12,547 $19,511 $1,184 $11,274 $10,943 $— $209,765 
Grade 5640 — 521 919 — 119 — — 2,199 
Grade 6— — — — — — — — — 
Grade 7— — — — 17 1,054 — — 1,071 
Total$82,531 $72,415 $13,068 $20,430 $1,201 $12,447 $10,943 $— $213,035 
Residential construction
Grades 1-4$58,352 $9,998 $155 $344 $1,072 $380 $— $— $70,301 
Grade 5— — 52 — — — — — 52 
Grade 6— — — — — — — — — 
Grade 7— — — — — — — — — 
Total$58,352 $9,998 $207 $344 $1,072 $380 $— $— $70,353 
Residential first mortgage
Grades 1-4$256,082 $152,932 $168,705 $22,568 $20,147 $82,479 $1,840 $4 $704,757 
Grade 5713 529 3,094 — — 1,508 — — 5,844 
Grade 6— — — — — — — — — 
Grade 7— — 560 225 73 2,524 — — 3,382 
Total$256,795 $153,461 $172,359 $22,793 $20,220 $86,511 $1,840 $4 $713,983 
Residential junior mortgage
Grades 1-4$3,194 $3,139 $3,021 $1,501 $512 $1,969 $115,817 $1,426 $130,579 
Grade 5— — 29 — — — 439 — 468 
Grade 6— — — — — — — — — 
Grade 7— — 172 — 23 44 138 — 377 
Total$3,194 $3,139 $3,222 $1,501 $535 $2,013 $116,394 $1,426 $131,424 
Retail & other
Grades 1-4$13,676 $6,886 $5,826 $2,053 $1,882 $20,102 $275 $— $50,700 
Grade 5— — — — — — — — — 
Grade 6— — — — — — — — — 
Grade 7— 24 2 19 — 62 — — 107 
Total$13,676 $6,910 $5,828 $2,072 $1,882 $20,164 $275 $— $50,807 
Total loans$1,211,408 $733,060 $592,366 $306,359 $283,629 $771,550 $722,034 $1,430 $4,621,836 
(a) For purposes of this table at December 31, 2021, the $25 million net carrying value of PPP loans include $24 million originated in 2021 and the remainder originated in 2020, have a Pass risk grade (Grades 1-4) and have been included with the Commercial & industrial loan category.
December 31, 2020Amortized Cost Basis by Origination Year
(in thousands)20202019201820172016PriorRevolvingRevolving to TermTOTAL
Commercial & industrial (a)
Grades 1-4$348,274 $121,989 $98,920 $72,027 $21,613 $39,454 $183,858 $— $886,135 
Grade 51,416 2,239 4,486 527 1,638 4,151 18,994 — 33,451 
Grade 669 19 735 5,315 29 32 1,923 — 8,122 
Grade 7334 1,126 1,389 663 122 3,103 2,289 — 9,026 
Total$350,093 $125,373 $105,530 $78,532 $23,402 $46,740 $207,064 $— $936,734 
Owner-occupied CRE
Grades 1-4$90,702 $74,029 $78,013 $52,911 $45,042 $150,624 $870 $— $492,191 
Grade 542 623 1,349 7,541 1,102 5,842 — — 16,499 
Grade 6— — — 1,710 — 706 — — 2,416 
Grade 72,987 675 176 835 — 5,521 — — 10,194 
Total$93,731 $75,327 $79,538 $62,997 $46,144 $162,693 $870 $— $521,300 
Agricultural
Grades 1-4$13,719 $5,652 $7,580 $9,745 $2,613 $32,702 $21,513 $— $93,524 
Grade 51,034 — 701 169 644 6,131 356 — 9,035 
Grade 6— — — 329 390 — — — 719 
Grade 7— — 26 110 1,111 5,042 62 — 6,351 
Total$14,753 $5,652 $8,307 $10,353 $4,758 $43,875 $21,931 $— $109,629 
CRE investment
Grades 1-4$82,518 $78,841 $40,881 $69,643 $31,541 $137,048 $5,255 $— $445,727 
Grade 5— — 47 1,284 1,828 9,073 — — 12,232 
Grade 6— — — 796 — — — — 796 
Grade 7— — — — — 1,966 — — 1,966 
Total$82,518 $78,841 $40,928 $71,723 $33,369 $148,087 $5,255 $— $460,721 
Construction & land development
Grades 1-4$67,578 $30,733 $15,209 $2,204 $2,083 $7,266 $3,675 $— $128,748 
Grade 5— 373 660 545 — 23 455 — 2,056 
Grade 6— — — — — — — — — 
Grade 7— — — — — 479 — — 479 
Total$67,578 $31,106 $15,869 $2,749 $2,083 $7,768 $4,130 $— $131,283 
Residential construction
Grades 1-4$31,687 $9,185 $395 $121 $— $264 $— $— $41,652 
Grade 5— — — 55 — — — — 55 
Grade 6— — — — — — — — — 
Grade 7— — — — — — — — — 
Total$31,687 $9,185 $395 $176 $— $264 $— $— $41,707 
Residential first mortgage
Grades 1-4$146,744 $64,013 $40,388 $41,245 $41,274 $103,094 $287 $5 $437,050 
Grade 5— 925 2,245 256 364 1,714 — — 5,504 
Grade 6— — — — — — — — — 
Grade 7— 437 197 16 9 942 — — 1,601 
Total$146,744 $65,375 $42,830 $41,517 $41,647 $105,750 $287 $5 $444,155 
Residential junior mortgage
Grades 1-4$4,936 $4,338 $3,663 $1,060 $869 $3,131 $91,816 $1,648 $111,461 
Grade 5— — — — — 32 — — 32 
Grade 6— — — — — — — — — 
Grade 7— — — 27 — 232 125 — 384 
Total$4,936 $4,338 $3,663 $1,087 $869 $3,395 $91,941 $1,648 $111,877 
Retail & other
Grades 1-4$8,083 $5,213 $1,942 $1,676 $752 $1,339 $12,602 $— $31,607 
Grade 5— — — — — — — — — 
Grade 6— — — — — — — — — 
Grade 716 — 22 — — 50 — — 88 
Total$8,099 $5,213 $1,964 $1,676 $752 $1,389 $12,602 $— $31,695 
Total loans$800,139 $400,410 $299,024 $270,810 $153,024 $519,961 $344,080 $1,653 $2,789,101 
(a) For purposes of this table, the $186 million net carrying value of PPP loans were originated in 2020, have a Pass risk grade (Grades 1-4) and have been included with the Commercial & industrial loan category.
The following tables present total loans by risk categories.
 December 31, 2021
(in thousands)Grades 1-4Grade 5Grade 6Grade 7Total
Commercial & industrial$983,068 $29,133 $1,904 $3,620 $1,017,725 
PPP loans24,531 — — — 24,531 
Owner-occupied CRE731,576 36,920 2,467 16,226 787,189 
Agricultural625,696 101,348 1,332 66,352 794,728 
CRE investment763,161 48,777 — 6,123 818,061 
Construction & land development209,765 2,199 — 1,071 213,035 
Residential construction70,301 52 — — 70,353 
Residential first mortgage704,757 5,844 — 3,382 713,983 
Residential junior mortgage130,579 468 — 377 131,424 
Retail & other50,700 — — 107 50,807 
Total loans$4,294,134 $224,741 $5,703 $97,258 $4,621,836 
Percent of total loans92.9 %4.9 %0.1 %2.1 %100.0 %
 December 31, 2020
(in thousands)Grades 1-4Grade 5Grade 6Grade 7Total
Commercial & industrial$700,119 $33,451 $8,122 $9,026 $750,718 
PPP loans186,016 — — — 186,016 
Owner-occupied CRE492,191 16,499 2,416 10,194 521,300 
Agricultural93,524 9,035 719 6,351 109,629 
CRE investment445,727 12,232 796 1,966 460,721 
Construction & land development128,748 2,056 — 479 131,283 
Residential construction41,652 55 — — 41,707 
Residential first mortgage437,050 5,504 — 1,601 444,155 
Residential junior mortgage111,461 32 — 384 111,877 
Retail & other31,607 — — 88 31,695 
Total loans$2,668,095 $78,864 $12,053 $30,089 $2,789,101 
Percent of total loans95.7 %2.8 %0.4 %1.1 %100.0 %
Loan composition of nonaccrual and performing TDRs The following table presents the loan composition of nonaccrual and performing TDRs.
 December 31, 2021December 31, 2020
(in thousands)PerformingNonaccrualTotalPerformingNonaccrualTotal
Commercial & industrial$— $197 $197 $— $— $— 
Owner-occupied CRE3,466 2,888 6,354 2,120 1,515 3,635 
Agricultural— 16,835 16,835 — 1,283 1,283 
CRE investment918 — 918 — 14 14 
Construction & land development— 308 308 — 308 308 
Residential first mortgage913 15 928 — 233 233 
Residential junior mortgage146 — 146 — — — 
Total$5,443 $20,243 $25,686 $2,120 $3,353 $5,473 

The following table presents the number of loans modified in a TDR, pre-modification loan balance, and post-modification loan balance by loan composition.

 December 31, 2021December 31, 2020
($ in thousands)Number of LoansPre-Modification BalanceCurrent BalanceNumber of LoansPre-Modification BalanceCurrent Balance
Commercial & industrial2 $200 $197 — $— $— 
Owner-occupied CRE6 6,913 6,354 4 4,075 3,635 
Agricultural31 17,228 16,835 4 1,461 1,283 
CRE investment1 919 918 1 180 14 
Construction & land development1 533 308 1 533 308 
Residential first mortgage2 931 928 1 233 233 
Residential junior mortgage1 166 146 — — — 
Total44 $26,890 $25,686 11 $6,482 $5,473