10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission file number 001-35968

MIDWESTONE FINANCIAL GROUP, INC.

(Exact name of Registrant as specified in its charter)

Iowa	42-1206172
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
102 South Clinton Street, Iowa City, IA 52240	(319) 356-5800
(Address of principal executive offices, including zip code)	(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $1.00 par value	MOFG	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes    ☐  No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    x  Yes    ☐  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	x
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     ☐  Yes    x  No

As of November 1, 2023, there were 15,691,738 shares of common stock, $1.00 par value per share, outstanding.

MIDWESTONE FINANCIAL GROUP, INC.

Form 10-Q Quarterly Report

Table of Contents

		Page No.
PART I
Item 1.	Financial Statements (unaudited)	1
	Consolidated Balance Sheets	1
	Consolidated Statements of Income	2
	Consolidated Statements of Comprehensive Income	3
	Consolidated Statements of Shareholders' Equity	4
	Consolidated Statements of Cash Flows	5
	Notes to Consolidated Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	55
Item 4.	Controls and Procedures	57
Part II
Item 1.	Legal Proceedings	58
Item 1A.	Risk Factors	58
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	58
Item 3.	Defaults Upon Senior Securities	58
Item 4.	Mine Safety Disclosures	58
Item 5.	Other Information	59
Item 6.	Exhibits	60
	Signatures	61

PART I – FINANCIAL INFORMATION

Glossary of Acronyms, Abbreviations, and Terms

As used in this report, references to "MidWestOne", "we", "our", "us", the "Company", and similar terms refer to the consolidated entity consisting of MidWestOne Financial Group, Inc. and its wholly-owned subsidiaries. MidWestOne Bank or the "Bank" refers to MidWestOne's bank subsidiary, MidWestOne Bank.

The acronyms, abbreviations, and terms listed below are used in various sections of this Quarterly Report on Form 10-Q ("Form 10-Q"), including "Item 1. Financial Statements" and "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations."

ACL	Allowance for Credit Losses	FHLB	Federal Home Loan Bank
AFS	Available for Sale	FHLBC	Federal Home Loan Bank of Chicago
AOCI	Accumulated Other Comprehensive Income	FHLBDM	Federal Home Loan Bank of Des Moines
ASC	Accounting Standards Codification	FHLMC	Federal Home Loan Mortgage Corporation
ASU	Accounting Standards Update	FNBF	First National Bank in Fairfield
ATM	Automated Teller Machine	FNBM	First National Bank of Muscatine
Basel III Rules	A comprehensive capital framework and rules for U.S. banking organizations approved by the FRB and the FDIC in 2013	FNMA	Federal National Mortgage Association
BHCA	Bank Holding Company Act of 1956, as amended	FRB	Board of Governors of the Federal Reserve System
BOLI	Bank Owned Life Insurance	GAAP	U.S. Generally Accepted Accounting Principles
CAA	Consolidated Appropriations Act, 2021	GLBA	Gramm-Leach-Bliley Act of 1999
CARES Act	Coronavirus Aid, Relief and Economic Security Act	GNMA	Government National Mortgage Association
CDARS	Certificate of Deposit Account Registry Service	ICS	Insured Cash Sweep
CECL	Current Expected Credit Loss	IOFB	Iowa First Bancshares Corp.
CMO	Collateralized Mortgage Obligations	LIBOR	The London Inter-bank Offered Rate
COVID-19	Coronavirus Disease 2019	MBS	Mortgage-Backed Securities
CRA	Community Reinvestment Act	PCD	Purchase Credit Deteriorated
CRE	Commercial Real Estate	PPP	Paycheck Protection Program
DCF	Discounted Cash Flows	ROU	Right-of-Use
DNVB	Denver Bankshares, Inc.	RPA	Credit Risk Participation Agreement
Dodd-Frank Act	Dodd-Frank Wall Street Reform and Consumer Protection Act	RRE	Residential Real Estate
ECL	Expected Credit Losses	SBA	U.S. Small Business Administration
EVE	Economic Value of Equity	SEC	U.S. Securities and Exchange Commission
FASB	Financial Accounting Standards Board	SOFR	Secured Overnight Financing Rate
FDIC	Federal Deposit Insurance Corporation	TDR	Troubled Debt Restructuring

Item 1.   Financial Statements (unaudited).

MIDWESTONE FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS

	September 30, 2023		December 31, 2022
(unaudited) (dollars in thousands, except per share amounts)
ASSETS
Cash and due from banks	$	71,015	$	83,990
Interest earning deposits in banks	3,773		2,445
Total cash and cash equivalents	74,788		86,435
Debt securities available for sale at fair value	872,770		1,153,547
Held to maturity securities at amortized cost	1,085,751		1,129,421
Total securities	1,958,521		2,282,968
Loans held for sale	2,528		612
Gross loans held for investment	4,078,060		3,854,791
Unearned income, net	(12,091)		(14,267)
Loans held for investment, net of unearned income	4,065,969		3,840,524
Allowance for credit losses	(51,600)		(49,200)
Total loans held for investment, net	4,014,369		3,791,324
Premises and equipment, net	85,589		87,125
Goodwill	62,477		62,477
Other intangible assets, net	25,510		30,315
Foreclosed assets, net	—		103
Other assets	244,036		236,517
Total assets	$	6,467,818	$	6,577,876
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest bearing deposits	$	924,213	$	1,053,450
Interest bearing deposits	4,439,111		4,415,492
Total deposits	5,363,324		5,468,942
Short-term borrowings	373,956		391,873
Long-term debt	124,526		139,210
Other liabilities	100,601		85,058
Total liabilities	5,962,407		6,085,083
Shareholders' equity
Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding	—		—
Common stock, $1.00 par value; authorized 30,000,000 shares; issued shares of 16,581,017 and 16,581,017; outstanding shares of 15,691,738 and 15,623,977	16,581		16,581
Additional paid-in capital	301,889		302,085
Retained earnings	295,862		289,289
Treasury stock at cost, 889,279 and 957,040 shares	(24,315)		(26,115)
Accumulated other comprehensive loss	(84,606)		(89,047)
Total shareholders' equity	505,411		492,793
Total liabilities and shareholders' equity	$	6,467,818	$	6,577,876

See accompanying notes to consolidated financial statements.  

1

MIDWESTONE FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME

 

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(unaudited) (dollars in thousands, except per share amounts)	2023		2022		2023		2022
Interest income
Loans, including fees	$	51,870	$	40,451	$	148,086	$	104,515
Taxable investment securities	9,526		10,635		29,704		28,334
Tax-exempt investment securities	1,802		2,326		5,751		7,076
Other	374		9		686		77
Total interest income	63,572		53,421		184,227		140,002
Interest expense
Deposits	23,128		5,035		58,564		11,118
Short-term borrowings	3,719		767		7,623		1,115
Long-term debt	2,150		1,886		6,427		4,975
Total interest expense	28,997		7,688		72,614		17,208
Net interest income	34,575		45,733		111,613		122,794
Credit loss expense	1,551		638		4,081		3,920
Net interest income after credit loss expense	33,024		45,095		107,532		118,874
Noninterest income
Investment services and trust activities	3,004		2,876		9,056		8,557
Service charges and fees	2,146		2,075		6,201		5,449
Card revenue	1,817		1,898		5,412		5,426
Loan revenue	1,462		1,722		3,791		9,538
Bank-owned life insurance	626		579		1,844		1,668
Investment securities gains (losses), net	79		(163)		(13,093)		272
Other	727		3,601		1,350		5,669
Total noninterest income	9,861		12,588		14,561		36,579
Noninterest expense
Compensation and employee benefits	18,558		20,046		58,551		57,665
Occupancy expense of premises, net	2,405		2,577		7,725		7,609
Equipment	2,123		2,358		6,729		6,366
Legal and professional	1,678		2,012		5,096		6,800
Data processing	1,504		1,731		4,388		4,199
Marketing	782		1,139		2,910		3,325
Amortization of intangibles	1,460		1,789		4,806		4,299
FDIC insurance	783		415		2,394		1,255
Communications	206		302		727		840
Foreclosed assets, net	2		42		(32)		(66)
Other	2,043		2,212		6,488		6,056
Total noninterest expense	31,544		34,623		99,782		98,348
Income before income tax expense	11,341		23,060		22,311		57,105
Income tax expense	2,203		4,743		4,182		12,272
Net income	$	9,138	$	18,317	$	18,129	$	44,833
Per common share information
Earnings - basic	$	0.58	$	1.17	$	1.16	$	2.86
Earnings - diluted	$	0.58	$	1.17	$	1.15	$	2.86
Dividends paid	$	0.2425	$	0.2375	$	0.7275	$	0.7125

See accompanying notes to consolidated financial statements.

2

MIDWESTONE FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(unaudited) (dollars in thousands)	2023		2022		2023		2022
Net income	$	9,138	$	18,317	$	18,129	$	44,833
Other comprehensive income (loss), net of tax:
Unrealized loss from AFS debt securities:
Unrealized net loss on debt securities AFS	(4,578)		(42,935)		(13,658)		(121,179)
Reclassification adjustment for losses (gains) included in net income	(79)		163		13,093		(272)
Reclassification of the change in fair value of AFS debt securities attributable to change in hedged risk	454		—		454		—
Income tax benefit	1,065		10,823		27		31,358
Unrealized net loss on AFS debt securities, net of reclassification adjustments	(3,138)		(31,949)		(84)		(90,093)
Reclassification of AFS debt securities to HTM:
Amortization of the net unrealized loss from the reclassification of AFS debt securities to HTM	586		746		1,768		3,152
Income tax expense	(148)		(189)		(447)		(817)
Amortization of net unrealized loss from the reclassification of AFS debt securities to HTM, net	438		557		1,321		2,335
Unrealized gain from cash flow hedging instruments:
Unrealized net gains in cash flow hedging instruments	1,829		—		5,288		—
Reclassification adjustment for net gain in cash flow hedging instruments included in income	(761)		—		(999)		—
Income tax expense	(270)		—		(1,085)		—
Unrealized net gains on cash flow hedge instruments, net of reclassification adjustment	798		—		3,204		—
Other comprehensive income (loss), net of tax	(1,902)		(31,392)		4,441		(87,758)
Comprehensive income (loss)	$	7,236	$	(13,075)	$	22,570	$	(42,925)

See accompanying notes to consolidated financial statements.

3

MIDWESTONE FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Three Months Ended September 30,
	Common Stock
(unaudited) (dollars in thousands, except per share amounts)	Par Value		Additional Paid-in Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total
Balance at June 30, 2022	$	16,581	$	300,859	$	262,395	$	(25,772)	$	(65,231)	$	488,832
Net Income	—		—		18,317		—		—		18,317
Other comprehensive loss	—		—		—		—		(31,392)		(31,392)
Release/lapse of restriction on RSUs (2,280 shares, net)	—		(81)		(4)		58		—		(27)
Repurchase of common stock (14,586 shares)	—		—		—		(431)		—		(431)
Share-based compensation	—		640		—		—		—		640
Dividends paid on common stock ($0.2375 per share)	—		—		(3,710)		—		—		(3,710)
Balance at September 30, 2022	$	16,581	$	301,418	$	276,998	$	(26,145)	$	(96,623)	$	472,229
Balance at June 30, 2023	$	16,581	$	301,424	$	290,548	$	(24,508)	$	(82,704)	$	501,341
Net Income	—		—		9,138		—		—		9,138
Other comprehensive loss	—		—		—		—		(1,902)		(1,902)
Release/lapse of restriction on RSUs (6,615 shares, net)	—		(227)		(19)		193		—		(53)
Share-based compensation	—		692		—		—		—		692
Dividends paid on common stock ($0.2425 per share)	—		—		(3,805)		—		—		(3,805)
Balance at September 30, 2023	$	16,581	$	301,889	$	295,862	$	(24,315)	$	(84,606)	$	505,411
Nine Months Ended September 30,
	Common Stock
(unaudited) (dollars in thousands, except per share amounts)	Par Value		Additional Paid-in Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total
Balance at December 31, 2021	$	16,581	$	300,940	$	243,365	$	(24,546)	$	(8,865)	$	527,475
Net income	—		—		44,833		—		—		44,833
Other comprehensive loss	—		—		—		—		(87,758)		(87,758)
Release/lapse of restriction on RSUs (43,079 shares, net)	—		(1,359)		(42)		1,131		—		(270)
Repurchase of common stock (91,401 shares)	—		—		—		(2,730)		—		(2,730)
Share-based compensation	—		1,837		—		—		—		1,837
Dividends paid on common stock ($0.7125 per share)	—		—		(11,158)		—		—		(11,158)
Balance at September 30, 2022	$	16,581	$	301,418	$	276,998	$	(26,145)	$	(96,623)	$	472,229
Balance at December 31, 2022	$	16,581	$	302,085	$	289,289	$	(26,115)	$	(89,047)	$	492,793
Net income	—		—		18,129		—		—		18,129
Other comprehensive income	—		—		—		—		4,441		4,441
Release/lapse of restriction on RSUs (67,761 shares, net)	—		(2,261)		(146)		1,800		—		(607)
Share-based compensation	—		2,065		—		—		—		2,065
Dividends paid on common stock ($0.7275 per share)	—		—		(11,410)		—		—		(11,410)
Balance at September 30, 2023	$	16,581	$	301,889	$	295,862	$	(24,315)	$	(84,606)	$	505,411

4

MIDWESTONE FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

	Nine Months Ended September 30,
(unaudited) (dollars in thousands)	2023		2022
Operating Activities:
Net income	$	18,129	$	44,833
Adjustments to reconcile net income to net cash provided by operating activities:
Credit loss expense	4,081		3,920
Depreciation, amortization, and accretion	9,420		7,511
Net change in premises and equipment due to writedown or sale	68		500
Share-based compensation	2,065		1,837
Net loss (gain) on sale or call of debt securities available for sale	13,093		(272)
Net change in foreclosed assets due to writedown or sale	(29)		(71)
Net gain on sale of loans held for sale	(912)		(1,705)
Origination of loans held for sale	(41,650)		(81,490)
Proceeds from sales of loans held for sale	40,646		93,792
Increase in cash surrender value of bank-owned life insurance	(1,844)		(1,668)
(Increase) decrease in deferred income taxes, net	(75)		4,082
Bargain purchase gain	—		(1,257)
Change in:
Other assets	(2,701)		(34,484)
Other liabilities	15,543		36,791
Net cash provided by operating activities	$	55,834	$	72,319
Investing Activities:
Purchases of equity securities	$	(750)	$	(1,250)
Proceeds from sales of debt securities available for sale	218,667		129,823
Proceeds from maturities and calls of debt securities available for sale	101,194		133,018
Purchases of debt securities available for sale	(54,690)		(386,278)
Proceeds from maturities and calls of debt securities held to maturity	43,963		108,180
Net increase in loans held for investment	(224,068)		(215,738)
Purchases of premises and equipment	(2,280)		(1,980)
Proceeds from sale of foreclosed assets	135		345
Proceeds from sale of premises and equipment	880		23
Net cash acquired in business acquisition	—		31,375
Net cash provided by (used in) investing activities	$	83,051	$	(202,482)
Financing Activities:
Net (decrease) increase in:
Deposits	$	(105,713)	$	(101,501)
Short-term borrowings	(17,917)		121,627
Payments on finance lease liability	(135)		(121)
Payments of Federal Home Loan Bank borrowings	(11,000)		(21,000)
Proceeds from other long-term debt	—		25,000
Payments of other long-term debt	(3,750)		(5,000)
Taxes paid relating to the release/lapse of restriction on RSUs	(607)		(270)
Dividends paid	(11,410)		(11,158)
Repurchase of common stock	—		(2,730)
Net cash (used in) provided by financing activities	$	(150,532)	$	4,847
Net change in cash and cash equivalents	$	(11,647)	$	(125,316)
Cash and cash equivalents at beginning of period	86,435		203,830
Cash and cash equivalents at end of period	$	74,788	$	78,514

5

	Nine Months Ended September 30,
(unaudited) (dollars in thousands)	2023		2022
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	$	65,992	$	17,628
Cash paid during the period for income taxes, net of refunds	1,456		8,229
Supplemental schedule of non-cash investing and financing activities:
Transfer of loans to foreclosed assets, net	$	3	$	20
Transfer of premises and equipment to assets held for sale	—		1,349
Transfer of debt securities available for sale to debt securities held to maturity	—		1,253,179
Supplemental schedule of non-cash investing activities from acquisition:
Non-cash assets acquired:
Investment securities	$	—	$	119,820
Total loans held for investment, net	—		281,326
Premises and equipment	—		7,363
Core deposit intangible	—		16,500
Bank-owned life insurance	—		7,862
Other assets	—		3,766
Total non-cash assets acquired	$	—	$	436,637
Liabilities assumed:
Deposits	$	—	$	463,638
Short-term borrowings	—		1,541
FHLB borrowings	—		250
Other liabilities	—		1,326
Total liabilities assumed	$	—	$	466,755

See accompanying notes to consolidated financial statements.

6

MidWestOne Financial Group, Inc.

Notes to Consolidated Financial Statements

(Unaudited)

1.    Nature of Business and Significant Accounting Policies

Nature of Business

MidWestOne Financial Group, Inc. (the "Company"), an Iowa corporation formed in 1983, is a bank holding company under the BHCA and a financial holding company under the GLBA. Our principal executive offices are located at 102 South Clinton Street, Iowa City, Iowa 52240.

The Company owns all of the outstanding common stock of MidWestOne Bank, an Iowa state non-member bank chartered in 1934 with its main office in Iowa City, Iowa. We operate primarily through MidWestOne Bank, our bank subsidiary.

On June 9, 2022, the Company acquired Iowa First Bancshares Corp., a bank holding company whose wholly-owned banking subsidiaries were First National Bank of Muscatine and First National Bank in Fairfield, community banks located in Muscatine and Fairfield, Iowa, respectively. Immediately following the completion of the acquisition, First National Bank of Muscatine and First National Bank in Fairfield were merged with and into the Bank. As consideration for the merger, we paid cash in the amount of $46.7 million.

Basis of Presentation

The accompanying interim condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, certain disclosures accompanying annual consolidated financial statements are omitted. In the opinion of management, all significant intercompany accounts and transactions have been eliminated and adjustments, consisting solely of normal recurring accruals and considered necessary for the fair presentation of financial statements for the interim periods, have been included. The current period's results of operations are not necessarily indicative of the results that ultimately may be achieved for the year. The interim condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2022, filed with the SEC on March 13, 2023.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect: (1) the reported amounts of assets and liabilities, (2) the disclosure of contingent assets and liabilities at the date of the financial statements, and (3) the reported amounts of revenues and expenses during the reporting period. These estimates are based on information available to management at the time the estimates are made. Actual results could differ from those estimates. The results for the three and nine months ended September 30, 2023 may not be indicative of results for the year ending December 31, 2023, or for any other period.

All significant accounting policies followed in the preparation of the quarterly financial statements are disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 13, 2023.

Segment Reporting

The Company’s activities are considered to be one reportable segment for financial reporting purposes. The Company is engaged in the business of commercial and retail banking and trust and investment management services with operations throughout central and eastern Iowa, the Minneapolis/St. Paul metropolitan area of Minnesota, southwestern Wisconsin, Naples and Fort Myers, Florida, and Denver, Colorado. Substantially all income is derived from a diverse base of commercial, mortgage and retail lending activities, and investments.

Effect of New Financial Accounting Standards

Accounting Guidance Pending Adoption at September 30, 2023

On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASC 848 contains optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. Certain optional expedients and exceptions for contract modifications and hedging relationships were amended in ASU 2021-01, Reference Rate Reform (Topic 848): Scope Refinement, issued on January 7, 2021. In addition, ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset

7

Date of Topic 848, deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which time entities will no longer be permitted to apply the relief in Topic 848. The adoption of ASU 2020-04 is not expected to have a material impact on the Company’s consolidated financial statements.

Accounting Guidance Adopted at September 30, 2023

On March 31, 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. For creditors that have adopted the CECL accounting guidance within ASU 2016-13, the amendments eliminate the accounting guidance for TDRs within ASC 310-40, while also enhancing the disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. In addition, public business entities must also disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20. The amendments are effective for fiscal years beginning after December 15, 2022 and should be applied prospectively, with an option to apply a modified retrospective transition approach for the recognition and measurement of TDRs. The adoption of ASU 2022-02 was applied prospectively and did not have a material impact on the Company's consolidated financial statements.

2.    Business Combinations

On June 9, 2022, the Company acquired 100% of the equity of IOFB through a merger and acquired its wholly-owned subsidiaries FNBM and FNBF for cash consideration of $46.7 million. The primary reasons for the acquisition were to enter the Muscatine, Iowa market and increase our presence in Fairfield, Iowa. Immediately following the completion of the acquisition, FNBM and FNBF were merged with and into the Bank.

The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their fair values as of the June 9, 2022 acquisition date net of any applicable tax effects using a methodology similar to the Company's legacy assets and liabilities (refer to Note 14. Fair Value of Financial Instruments and Fair Value Measurements for additional information regarding the fair value methodology). The bargain purchase gain, which is recorded in 'Other' noninterest income, was generated as a result of the estimated fair value of identifiable net assets acquired exceeding the merger consideration. Bargain purchase gains are recorded net of deferred taxes and are treated as permanent differences, resulting in lower effective tax rate in the period recorded. The revenue and earnings amount specific to IOFB since the acquisition date that are included in the consolidated results for the three and nine months ended September 30, 2022 are not readily determinable. The disclosures of these amounts are impracticable due to the merging of certain processes and systems at the acquisition date.

The table below summarizes the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed:

(in thousands)	June 9, 2022
Merger consideration
Cash consideration	$	46,672
Identifiable net assets acquired, at fair value
Assets acquired
Cash and due from banks	$	10,192
Interest earning deposits in banks	67,855
Debt securities	119,820
Loans held for investment	281,326
Premises and equipment	7,363
Core deposit intangible	16,500
Other assets	14,140
Total assets acquired	517,196
Liabilities assumed
Deposits	$	(463,638)
Other liabilities	(3,117)
Total liabilities assumed	(466,755)
Identifiable net assets acquired, at fair value	50,441
Bargain Purchase Gain	$	3,769

8

Of the $281.3 million net loans acquired, $11.0 million exhibited credit deterioration on the date of purchase. The following table provides a summary of these PCD loans at acquisition:

(in thousands)	June 9, 2022
Par value of PCD loans acquired	$	15,396
PCD ACL at acquisition	(3,371)
Non-credit discount on PCD loans	(1,005)
Purchase price of PCD loans	$	11,020

For illustrative purposes only, the following table presents certain unaudited pro forma information for the three and nine months ended September 30, 2022. This unaudited, estimated pro forma information was calculated as if IOFB had been acquired as of the beginning of the year prior to the date of acquisition. This unaudited pro forma information combines the historical results of IOFB and the Company and includes adjustments for the estimated impact of certain fair value purchase accounting, interest expense, acquisition-related expenses, and income tax expense for the respective periods. The pro forma information is not indicative of what would have occurred had the acquisition occurred as of the beginning of the year prior to the acquisition. Additionally, MidWestOne expects to achieve further operating cost savings and other business synergies, including revenue growth as a result of the acquisition, which are not reflected in the pro forma amounts that follow. As a result, actual amounts would have differed from the unaudited pro forma information presented.

	Three Months Ended			Nine Months Ended
	September 30,			September 30,
(in thousands, except per share amounts)		2022		2022
Total revenues		$	55,954	$	165,053
Net Income		$	17,111	$	46,663
EPS - basic		$	1.10	$	2.98
EPS - diluted		$	1.09	$	2.97

The Company announced during the third quarter of 2023 the execution of a definitive merger agreement for the acquisition of DNVB, the parent company for the Bank of Denver.

The following table summarizes the DNVB and IOFB acquisition-related expenses, which are included in the respective income statement line items, for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2023		2022		2023		2022
Noninterest Expense
Compensation and employee benefits	$	—	$	132	$	70	$	282
Occupancy expense of premises, net	—		—		—		1
Equipment	—		14		—		25
Legal and professional	11		193		11		894
Data processing	—		304		65		380
Marketing	—		90		—		162
Communications	—		—		—		3
Other	—		30		1		45
Total acquisition-related expenses	$	11	$	763	$	147	$	1,792

3.    Debt Securities

On January 1, 2022, the Company transferred, at fair value, $1.25 billion of mortgage-backed securities, collateralized mortgage obligations, and securities issued by state and political subdivisions from the available for sale classification to the held to maturity classification. The net unrealized after tax loss of $11.5 million associated with those re-classified securities remained in accumulated other comprehensive loss and will be amortized over the remaining life of the securities. At September 30, 2023, there was $7.4 million of net unrealized after tax loss remaining in accumulated other comprehensive loss. No gains or losses were recognized in earnings at the time of the transfer.

9

The following tables summarize the amortized cost, gross unrealized gains and losses and the resulting fair value of debt securities as of the dates indicated:

	As of September 30, 2023
(in thousands)	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Loss related to Debt Securities		Fair Value
Available for Sale
State and political subdivisions	$	177,300	$	1	$	14,833	$	—	$	162,468
Mortgage-backed securities	5,574		—		247		—		5,327
Collateralized loan obligations	52,697		6		250		—		52,453
Collateralized mortgage obligations	159,344		—		27,421		—		131,923
Corporate debt securities	586,612		60		66,073		—		520,599
Total available for sale debt securities	$	981,527	$	67	$	108,824	$	—	$	872,770
Held to Maturity
State and political subdivisions	$	532,885	$	—	$	100,821	$	—	$	432,064
Mortgage-backed securities	76,310		—		15,863		—		60,447
Collateralized mortgage obligations	476,556		—		120,704		—		355,852
Total held to maturity debt securities	$	1,085,751	$	—	$	237,388	$	—	$	848,363
(1) Amortized cost for the held to maturity securities includes $223 thousand of unamortized gain in state and political subdivisions, $35 thousand of unamortized gains in mortgage-backed securities and $10.2 million of unamortized losses in collateralized mortgage obligations related to the re-classification of securities from available for sale to held to maturity on January 1, 2022.

	As of December 31, 2022
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Loss related to Debt Securities		Fair Value
Available for Sale
U.S. Government agencies and corporations	$	7,598	$	—	$	253	$	—	$	7,345
State and political subdivisions	303,573		27		18,244		—		285,356
Mortgage-backed securities	6,165		11		232		—		5,944
Collateralized mortgage obligations	172,568		—		25,375		—		147,193
Corporate debt securities	771,836		125		64,252		—		707,709
Total available for sale debt securities	$	1,261,740	$	163	$	108,356	$	—	$	1,153,547
Held to Maturity
State and political subdivisions	$	538,746	$	—	$	88,349	$	—	$	450,397
Mortgage-backed securities	81,032		—		12,851		—		68,181
Collateralized mortgage obligations	509,643		—		103,327		—		406,316
Total held to maturity debt securities	$	1,129,421	$	—	$	204,527	$	—	$	924,894

Investment securities with a fair value of $1.27 billion and $690.2 million at September 30, 2023 and December 31, 2022, respectively, were pledged on public deposits, securities sold under agreements to repurchase and for other purposes, as required or permitted by law.

Accrued interest receivable on available for sale debt securities and held to maturity debt securities is recorded within 'Other Assets,' and is excluded from the estimate of credit losses. At September 30, 2023 the accrued interest receivable on available for sale debt securities and held to maturity debt securities totaled $6.8 million and $3.5 million, respectively. At December 31, 2022 the accrued interest receivable on available for sale debt securities and held to maturity debt securities totaled $7.6 million and $3.7 million, respectively.

10

The following table presents debt securities AFS in an unrealized loss position for which an allowance for credit losses has not been recorded as of September 30, 2023, aggregated by investment category and length of time in a continuous loss position:

		As of September 30, 2023
	Number of Securities	Less than 12 Months				12 Months or More				Total
Available for Sale		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(in thousands, except number of securities)
State and political subdivisions	200	$	17,776	$	969	$	141,021	$	13,864	$	158,797	$	14,833
Mortgage-backed securities	29	376		6		4,910		241		5,286		247
Collateralized loan obligations	4	39,870		250		—		—		39,870		250
Collateralized mortgage obligations	20	6,628		27		125,295		27,394		131,923		27,421
Corporate debt securities	142	4,130		75		493,017		65,998		497,147		66,073
Total	395	$	68,780	$	1,327	$	764,243	$	107,497	$	833,023	$	108,824

As of September 30, 2023, 200 state and political subdivisions securities with total unrealized losses of $14.8 million were held by the Company. Management evaluated these securities through a process that included consideration of credit agency ratings and payment history. In addition, management evaluated securities by considering the yield spread to treasury securities and the most recent financial information available. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses.

As of September 30, 2023, 29 mortgage-backed securities, and 20 collateralized mortgage obligations with unrealized losses totaling $27.7 million were held by the Company. Management evaluated the payment history of these securities. In addition, management considered the implied U.S. government guarantee of these agency securities and the level of credit enhancement for non-agency securities. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses.

As of September 30, 2023, 4 collateralized loan obligations with unrealized losses of $0.3 million were held by the Company. Management evaluated these securities through a process that included consideration of credit agency ratings, priority of cash flows and the amount of over-collateralization. In addition, management may evaluate securities by considering the yield spread to treasury securities and the most recent financial information available. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses.

As of September 30, 2023, 142 corporate debt securities with total unrealized losses of $66.1 million were held by the Company. Management evaluated these securities by considering credit agency ratings and payment history. In addition, management evaluated securities by considering the yield spread to treasury securities and the most recent financial information available. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses.

The following table presents debt securities AFS in an unrealized loss position for which an allowance for credit losses has not been recorded as of December 31, 2022, aggregated by investment category and length of time in a continuous loss position:

		As of December 31, 2022
Available for Sale	Number of Securities	Less than 12 Months				12 Months or More				Total
		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(in thousands, except number of securities)
U.S. Government agencies and corporations	8	$	7,345	$	253	$	—	$	—	$	7,345	$	253
State and political subdivisions	380	248,339		14,553		20,631		3,691		268,970		18,244
Mortgage-backed securities	27	5,323		231		45		1		5,368		232
Collateralized mortgage obligations	20	75,041		7,121		72,152		18,254		147,193		25,375
Corporate debt securities	159	369,441		21,679		288,329		42,573		657,770		64,252
Total	594	$	705,489	$	43,837	$	381,157	$	64,519	$	1,086,646	$	108,356

The Company evaluates debt securities held to maturity for current expected credit losses. There were no debt securities held to maturity classified as nonaccrual or past due as of September 30, 2023. Held-to-maturity securities are evaluated on a quarterly basis using historical probability of default and loss given default information specific to the investment category. If this evaluation determines that credit losses exist, an allowance for credit loss is recorded and included in earnings as a component of credit loss expense. Based on this evaluation, management concluded that no allowance for credit loss for these securities was required.

Proceeds and gross realized gains and losses on debt securities available for sale for the three and nine months ended September 30, 2023 and 2022, were as follows:

11

	Three Months Ended				Nine Months Ended
(in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Proceeds from sales of debt securities available for sale	$	—	$	17,570	$	218,667	$	129,823
Gross realized losses from sales of debt securities available for sale	—		(167)		(13,170)		(167)
Net realized loss from sales of debt securities available for sale(1)	$	—	$	(167)	$	(13,170)	$	(167)
(1) The difference in investment security gains, net reported herein as compared to the Consolidated Statements of Income is associated with the net realized gain from the call of debt securities of $79 thousand and $77 thousand for the three and nine months ended September 30, 2023 and $4 thousand and $439 thousand for the three and nine months ended September 30, 2022.

The contractual maturity distribution of investment debt securities at September 30, 2023, is shown below. Expected maturities of MBS, CLO and CMO may differ from contractual maturities because the mortgages underlying the securities may be called or prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following summary.

	Available for Sale				Held to Maturity
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	53,730	$	52,581	$	2,563	$	2,495
Due after one year through five years	522,893		473,528		132,842		117,757
Due after five years through ten years	158,373		133,485		232,569		186,814
Due after ten years	28,916		23,473		164,911		124,998
	$	763,912	$	683,067	$	532,885	$	432,064
Mortgage-backed securities	5,574		5,327		76,310		60,447
Collateralized loan obligations	52,697		52,453		—		—
Collateralized mortgage obligations	159,344		131,923		476,556		355,852
Total	$	981,527	$	872,770	$	1,085,751	$	848,363

4.    Loans Receivable and the Allowance for Credit Losses

The composition of loans by class of receivable was as follows:

	As of
(in thousands)	September 30, 2023		December 31, 2022
Agricultural	$	111,950	$	115,320
Commercial and industrial	1,078,773		1,055,162
Commercial real estate:
Construction & development	331,868		270,991
Farmland	182,621		183,913
Multifamily	337,509		252,129
Commercial real estate-other	1,324,019		1,272,985
Total commercial real estate	2,176,017		1,980,018
Residential real estate:
One- to four- family first liens	456,771		451,210
One- to four- family junior liens	173,275		163,218
Total residential real estate	630,046		614,428
Consumer	69,183		75,596
Loans held for investment, net of unearned income	4,065,969		3,840,524
Allowance for credit losses	(51,600)		(49,200)
Total loans held for investment, net	$	4,014,369	$	3,791,324

Loans with unpaid principal in the amount of $1.14 billion and $1.01 billion at September 30, 2023 and December 31, 2022, respectively, were pledged to the FHLB as collateral for borrowings.

Non-accrual and Delinquent Status

Loans are placed on non-accrual when (1) payment in full of principal and interest is no longer expected or (2) principal or interest has been in default for 90 days or more for all loan types, except owner occupied residential real estate, which are moved to non-accrual at 120 days or more past due, unless the loan is both well secured with marketable collateral and in the process of collection. All loans rated doubtful or worse, and certain loans rated substandard, are placed on non-accrual.

12

A non-accrual loan may be restored to an accrual status when (1) all past due principal and interest has been paid (excluding renewals and modifications that involve the capitalizing of interest) or (2) the loan becomes well secured with marketable collateral and is in the process of collection. An established track record of performance is also considered when determining accrual status.

Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment.

The following tables present the amortized cost basis of loans based on delinquency status:

			Age Analysis of Past-Due Financial Assets								90 Days or More Past Due And Accruing
(in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
September 30, 2023
Agricultural	$	111,713	$	—	$	13	$	224	$	111,950	$	—
Commercial and industrial	1,077,276		616		31		850		1,078,773		—
Commercial real estate:
Construction and development	331,868		—		—		—		331,868		—
Farmland	181,352		30		—		1,239		182,621		—
Multifamily	337,509		—		—		—		337,509		—
Commercial real estate-other	1,319,503		29		—		4,487		1,324,019		—
Total commercial real estate	2,170,232		59		—		5,726		2,176,017		—
Residential real estate:
One- to four- family first liens	449,842		3,609		2,286		1,034		456,771		100
One- to four- family junior liens	172,936		202		23		114		173,275		—
Total residential real estate	622,778		3,811		2,309		1,148		630,046		100
Consumer	68,869		275		36		3		69,183		—
Total	$	4,050,868	$	4,761	$	2,389	$	7,951	$	4,065,969	$	100

			Age Analysis of Past-Due Financial Assets								90 Days or More Past Due And Accruing
(in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
December 31, 2022
Agricultural	$	114,922	$	100	$	—	$	298	$	115,320	$	—
Commercial and industrial	1,052,406		922		111		1,723		1,055,162		—
Commercial real estate:
Construction and development	270,905		86		—		—		270,991		—
Farmland	182,115		729		—		1,069		183,913		—
Multifamily	252,129		—		—		—		252,129		—
Commercial real estate-other	1,266,874		5,574		45		492		1,272,985		—
Total commercial real estate	1,972,023		6,389		45		1,561		1,980,018		—
Residential real estate:
One- to four- family first liens	446,066		3,177		954		1,013		451,210		565
One- to four- family junior liens	161,989		301		78		850		163,218		—
Total residential real estate	608,055		3,478		1,032		1,863		614,428		565
Consumer	75,443		110		17		26		75,596		—
Total	$	3,822,849	$	10,999	$	1,205	$	5,471	$	3,840,524	$	565

13

The following table presents the amortized cost basis of loans on non-accrual status, amortized cost basis of loans on non-accrual status with no allowance for credit losses recorded, and loans past due 90 days or more and still accruing by class of loan:

	Nonaccrual				Nonaccrual with no Allowance for Credit Losses				90 Days or More Past Due And Accruing
(in thousands)	September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
Agricultural	$	240	$	377	$	224	$	281	$	—	$	—
Commercial and industrial	18,472		2,728		12,585		1,049		—		—
Commercial real estate:
Construction and development	—		—		—		—		—		—
Farmland	1,736		2,278		1,590		1,997		—		—
Multifamily	—		—		—		—		—		—
Commercial real estate-other	5,117		6,397		369		5,647		—		—
Total commercial real estate	6,853		8,675		1,959		7,644		—		—
Residential real estate:
One- to four- family first liens	2,339		2,275		546		928		100		565
One- to four- family junior liens	969		1,165		—		—		—		—
Total residential real estate	3,308		3,440		546		928		100		565
Consumer	14		36		—		—		—		—
Total	$	28,887	$	15,256	$	15,314	$	9,902	$	100	$	565

The interest income recognized on loans that were on nonaccrual for the three months ended September 30, 2023 and September 30, 2022 was $93 thousand and $70 thousand, respectively. The interest income recognized on loans that were on nonaccrual for the nine months ended September 30, 2023 and September 30, 2022 was $186 thousand and $345 thousand, respectively.

Credit Quality Information

The Company aggregates loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, and other factors. The Company analyzes loans individually to classify the loans as to credit risk. This analysis includes non-homogenous loans, such as agricultural, commercial and industrial, commercial real estate and non-owner occupied residential real estate loans. Loans not meeting the criteria described below that are analyzed individually are considered to be pass-rated. The Company uses the following definitions for risk ratings:

Special Mention/Watch - A special mention/watch asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention/watch assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.

Substandard - Substandard loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable.

Loss - Loans classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future.

Homogenous loans, including owner occupied residential real estate and consumer loans, are not individually risk rated. Instead, these loans are categorized based on performance: performing and nonperforming. Nonperforming loans include those loans on nonaccrual and loans greater than 90 days past due and on accrual.

14

The following table sets forth the amortized cost basis of loans by class of receivable by credit quality indicator, and vintage, in addition to the current period gross write-offs by class of receivable and vintage, based on the most recent analysis performed, as of September 30, 2023. As of September 30, 2023, there were no 'loss' rated credits.

	Term Loans by Origination Year												Revolving Loans
September 30, 2023 (in thousands)	2023		2022		2021		2020		2019		Prior				Total
Agricultural
Pass	$	11,277	$	13,087	$	9,451	$	3,268	$	1,359	$	1,155	$	63,474	$	103,071
Special mention / watch	268		609		801		102		6		523		3,722		6,031
Substandard	394		151		184		214		2		225		1,678		2,848
Doubtful	—		—		—		—		—		—		—		—
Total	$	11,939	$	13,847	$	10,436	$	3,584	$	1,367	$	1,903	$	68,874	$	111,950
Commercial and industrial
Pass	$	111,886	$	243,011	$	212,836	$	129,482	$	27,383	$	119,645	$	161,886	$	1,006,129
Special mention / watch	1,437		766		652		4,646		8,101		7,825		13,751		37,178
Substandard	1,471		2,571		2,440		1,344		717		22,571		4,352		35,466
Doubtful	—		—		—		—		—		—		—		—
Total	$	114,794	$	246,348	$	215,928	$	135,472	$	36,201	$	150,041	$	179,989	$	1,078,773
CRE - Construction and development
Pass	$	69,354	$	198,619	$	47,522	$	3,532	$	833	$	1,118	$	9,754	$	330,732
Special mention / watch	—		—		474		—		—		—		412		886
Substandard	—		249		—		—		—		1		—		250
Doubtful	—		—		—		—		—		—		—		—
Total	$	69,354	$	198,868	$	47,996	$	3,532	$	833	$	1,119	$	10,166	$	331,868
CRE - Farmland
Pass	$	17,318	$	50,872	$	48,074	$	19,438	$	6,703	$	16,056	$	1,866	$	160,327
Special mention / watch	1,237		2,761		2,456		6,104		—		1,180		804		14,542
Substandard	1,592		118		1,545		1,103		1,058		2,306		30		7,752
Doubtful	—		—		—		—		—		—		—		—
Total	$	20,147	$	53,751	$	52,075	$	26,645	$	7,761	$	19,542	$	2,700	$	182,621
CRE - Multifamily
Pass	$	28,961	$	55,115	$	112,033	$	83,413	$	8,800	$	5,654	$	33	$	294,009
Special mention / watch	—		1,244		280		19,112		7,899		7,025		—		35,560
Substandard	—		—		7,611		329		—		—		—		7,940
Doubtful	—		—		—		—		—		—		—		—
Total	$	28,961	$	56,359	$	119,924	$	102,854	$	16,699	$	12,679	$	33	$	337,509
CRE - Other
Pass	$	151,212	$	292,139	$	272,055	$	264,462	$	78,764	$	97,815	$	47,111	$	1,203,558
Special mention / watch	1,520		25,905		21,389		4,639		4,290		3,301		3,947		64,991
Substandard	324		2,104		1,704		20,414		12,067		18,018		839		55,470
Doubtful	—		—		—		—		—		—		—		—
Total	$	153,056	$	320,148	$	295,148	$	289,515	$	95,121	$	119,134	$	51,897	$	1,324,019
RRE - One- to four- family first liens
Pass / Performing	$	52,320	$	128,048	$	94,709	$	55,492	$	20,236	$	84,489	$	11,312	$	446,606
Special mention / watch	470		721		36		633		1,851		323		—		4,034
Substandard / Nonperforming	1,171		463		485		166		167		3,679		—		6,131
Doubtful	—		—		—		—		—		—		—		—
Total	$	53,961	$	129,232	$	95,230	$	56,291	$	22,254	$	88,491	$	11,312	$	456,771
RRE - One- to four- family junior liens
Performing	$	20,458	$	31,327	$	19,622	$	7,643	$	2,449	$	8,322	$	82,485	$	172,306
Nonperforming	—		—		—		26		203		740		—		969
Total	$	20,458	$	31,327	$	19,622	$	7,669	$	2,652	$	9,062	$	82,485	$	173,275
Consumer
Performing	$	21,003	$	18,598	$	11,481	$	5,213	$	1,821	$	6,911	$	4,143	$	69,170
Nonperforming	—		—		—		5		5		3		—		13
Total	$	21,003	$	18,598	$	11,481	$	5,218	$	1,826	$	6,914	$	4,143	$	69,183

15

	Term Loans by Origination Year												Revolving Loans
September 30, 2023 (in thousands)	2023		2022		2021		2020		2019		Prior				Total
Total by Credit Quality Indicator Category
Pass	$	442,328	$	980,891	$	796,680	$	559,087	$	144,078	$	325,932	$	295,436	$	3,544,432
Special mention / watch	4,932		32,006		26,088		35,236		22,147		20,177		22,636		163,222
Substandard	4,952		5,656		13,969		23,570		14,011		46,800		6,899		115,857
Doubtful	—		—		—		—		—		—		—		—
Performing	41,461		49,925		31,103		12,856		4,270		15,233		86,628		241,476
Nonperforming	—		—		—		31		208		743		—		982
Total	$	493,673	$	1,068,478	$	867,840	$	630,780	$	184,714	$	408,885	$	411,599	$	4,065,969
Year-to-date Current Period Gross Write-offs
Agricultural	$	—	$	8	$	1	$	17	$	—	$	—	$	—	$	26
Commercial and industrial	30		256		143		115		431		45		—		1,020
CRE - Construction and development	—		—		—		—		—		—		—		—
CRE - Farmland	—		—		—		—		—		—		—		—
CRE - Multifamily	—		—		—		—		—		—		—		—
CRE - Other	—		—		—		—		—		830		—		830
RRE - One-to-four-family first liens	—		—		—		—		—		35		—		35
RRE - One-to-four-family junior liens	—		19		—		—		—		—		—		19
Consumer	—		424		9		3		11		4		—		451
Total Current Period Gross Write-offs	$	30	$	707	$	153	$	135	$	442	$	914	$	—	$	2,381

16

The following table sets forth the amortized cost basis of loans by class of receivable by credit quality indicator and vintage based on the most recent analysis performed, as of December 31, 2022. As of December 31, 2022, there were no 'loss' rated credits.

	Term Loans by Origination Year												Revolving Loans
December 31, 2022 (in thousands)	2022		2021		2020		2019		2018		Prior				Total
Agricultural
Pass	$	20,279	$	12,511	$	5,398	$	2,883	$	939	$	1,063	$	65,395	$	108,468
Special mention / watch	143		1,012		115		36		—		604		1,655		3,565
Substandard	48		646		366		4		7		302		1,914		3,287
Doubtful	—		—		—		—		—		—		—		—
Total	$	20,470	$	14,169	$	5,879	$	2,923	$	946	$	1,969	$	68,964	$	115,320
Commercial and industrial
Pass	$	262,500	$	232,263	$	151,567	$	48,199	$	27,680	$	115,877	$	163,205	$	1,001,291
Special mention / watch	3,975		3,574		5,465		592		3,299		1,864		12,299		31,068
Substandard	556		166		1,172		756		556		18,585		1,012		22,803
Doubtful	—		—		—		—		—		—		—		—
Total	$	267,031	$	236,003	$	158,204	$	49,547	$	31,535	$	136,326	$	176,516	$	1,055,162
CRE - Construction and development
Pass	$	144,597	$	73,832	$	19,324	$	989	$	1,058	$	549	$	28,069	$	268,418
Special mention / watch	1,787		499		—		—		—		—		—		2,286
Substandard	281		—		—		—		—		6		—		287
Doubtful	—		—		—		—		—		—		—		—
Total	$	146,665	$	74,331	$	19,324	$	989	$	1,058	$	555	$	28,069	$	270,991
CRE - Farmland
Pass	$	55,251	$	52,802	$	28,744	$	7,266	$	8,406	$	12,895	$	1,946	$	167,310
Special mention / watch	3,058		2,229		1,470		—		225		21		1,693		8,696
Substandard	148		1,974		1,192		1,136		1,459		1,998		—		7,907
Doubtful	—		—		—		—		—		—		—		—
Total	$	58,457	$	57,005	$	31,406	$	8,402	$	10,090	$	14,914	$	3,639	$	183,913
CRE - Multifamily
Pass	$	31,018	$	93,907	$	84,573	$	17,137	$	2,549	$	5,161	$	49	$	234,394
Special mention / watch	1,000		—		1,567		—		5,931		1,178		—		9,676
Substandard	—		7,725		334		—		—		—		—		8,059
Doubtful	—		—		—		—		—		—		—		—
Total	$	32,018	$	101,632	$	86,474	$	17,137	$	8,480	$	6,339	$	49	$	252,129
CRE - Other
Pass	$	322,753	$	314,376	$	296,368	$	79,408	$	31,041	$	81,708	$	51,064	$	1,176,718
Special mention / watch	8,858		3,399		13,245		10,365		1,137		8,122		2,518		47,644
Substandard	752		589		19,702		13,294		10,197		4,089		—		48,623
Doubtful	—		—		—		—		—		—		—		—
Total	$	332,363	$	318,364	$	329,315	$	103,067	$	42,375	$	93,919	$	53,582	$	1,272,985
RRE - One- to four- family first liens
Pass / Performing	$	139,289	$	103,534	$	63,627	$	23,831	$	21,868	$	77,967	$	11,438	$	441,554
Special mention / watch	1,074		611		672		1,920		150		702		—		5,129
Substandard / Nonperforming	175		438		174		175		674		2,891		—		4,527
Doubtful	—		—		—		—		—		—		—		—
Total	$	140,538	$	104,583	$	64,473	$	25,926	$	22,692	$	81,560	$	11,438	$	451,210
RRE - One- to four- family junior liens
Performing	$	37,296	$	22,908	$	8,906	$	3,058	$	3,757	$	6,330	$	79,798	$	162,053
Nonperforming	—		23		31		179		756		76		100		1,165
Total	$	37,296	$	22,931	$	8,937	$	3,237	$	4,513	$	6,406	$	79,898	$	163,218
Consumer
Performing	$	32,584	$	18,979	$	7,966	$	3,489	$	1,646	$	6,641	$	4,255	$	75,560
Nonperforming	—		2		16		9		4		5		—		36
Total	$	32,584	$	18,981	$	7,982	$	3,498	$	1,650	$	6,646	$	4,255	$	75,596
Total by Credit Quality Indicator Category
Pass	$	975,687	$	883,225	$	649,601	$	179,713	$	93,541	$	295,220	$	321,166	$	3,398,153
Special mention / watch	19,895		11,324		22,534		12,913		10,742		12,491		18,165		108,064
Substandard	1,960		11,538		22,940		15,365		12,893		27,871		2,926		95,493
Doubtful	—		—		—		—		—		—		—		—
Performing	69,880		41,887		16,872		6,547		5,403		12,971		84,053		237,613
Nonperforming	—		25		47		188		760		81		100		1,201
Total	$	1,067,422	$	947,999	$	711,994	$	214,726	$	123,339	$	348,634	$	426,410	$	3,840,524

17

Allowance for Credit Losses

The following are the economic factors utilized by the Company for its loan credit loss estimation process at September 30, 2023, and the forecast for each factor at that date: (1) Midwest unemployment – increases over the next four forecasted quarters; (2) Year-to-year change in national retail sales - increases over the next four forecasted quarters; (3) Year-to-year change in CRE Index - decreases in the next four forecasted quarters; (4) Year-to-year change in U.S. GDP - increases over the next four forecasted quarters; (5) Year-to-year change in National Home Price Index – increases over the next two forecasted quarters, with declines in the third and fourth forecasted quarters; and (6) Rental Vacancy - increases over the next four forecasted quarters. In addition, management utilized qualitative factors to adjust the calculated ACL as appropriate. Qualitative factors are based on management’s judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions.

The increase in the ACL between September 30, 2023 and December 31, 2022 is primarily driven by reserves related to loans individually evaluated for impairment. Net loan charge-offs were $0.5 million for the three months ended September 30, 2023 as compared to net loan charge-offs of $0.6 million for the three months ended September 30, 2022. Net loan charge-offs were $1.7 million for the nine months ended September 30, 2023 as compared to net loan charge-offs of $3.1 million for the nine months ended September 30, 2022.

We have made a policy election to report interest receivable as a separate line on the balance sheet. Accrued interest receivable, which is recorded within 'Other Assets', totaled $19.0 million at September 30, 2023 and $15.3 million at December 31, 2022 and is excluded from the estimate of credit losses. The changes in the allowance for credit losses by portfolio segment were as follows:

	For the Three Months Ended September 30, 2023 and 2022
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
For the Three Months Ended September 30, 2023
Beginning balance	$	617	$	22,921	$	21,911	$	4,393	$	558	$	50,400
Charge-offs	(25)		(511)		—		(21)		(178)		(735)
Recoveries	126		79		4		3		72		284
Credit loss expense (benefit)(1)	(181)		(426)		1,872		268		118		1,651
Ending balance	$	537	$	22,063	$	23,787	$	4,643	$	570	$	51,600
For the Three Months Ended September 30, 2022
Beginning balance	$	987	$	21,166	$	24,399	$	5,174	$	624	$	52,350
Charge-offs	(248)		(280)		(135)		(52)		(255)		(970)
Recoveries	1		295		6		48		32		382
Credit loss expense (benefit) (1)	241		3,075		(3,322)		138		206		338
Ending balance	$	981	$	24,256	$	20,948	$	5,308	$	607	$	52,100
(1) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss (benefit) expense of $(0.1) million and $0.3 million related to off-balance sheet credit exposures for the three months ended September 30, 2023 and September 30, 2022, respectively.

	For the Nine Months Ended September 30, 2023 and 2022
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
For the Nine Months Ended September 30, 2023
Beginning balance	$	923	$	22,855	$	20,123	$	4,678	$	621	$	49,200
Charge-offs	(26)		(1,020)		(830)		(54)		(451)		(2,381)
Recoveries	153		349		15		23		160		700
Credit loss expense (benefit)(1)	(513)		(121)		4,479		(4)		240		4,081
Ending balance	$	537	$	22,063	$	23,787	$	4,643	$	570	$	51,600
For the Nine Months Ended September 30, 2022
Beginning balance	$	667	$	17,294	$	26,120	$	4,010	$	609	$	48,700
PCD allowance established in acquisition	512		1,473		1,227		159		—		3,371
Charge-offs	(249)		(843)		(2,319)		(90)		(540)		(4,041)
Recoveries	9		613		154		68		106		950
Credit loss (benefit) expense(1)	42		5,719		(4,234)		1,161		432		3,120
Ending balance	$	981	$	24,256	$	20,948	$	5,308	$	607	$	52,100
(1) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss expense (benefit) of $0.0 million and $0.8 million related to off-balance sheet credit exposures for the nine months ended September 30, 2023 and September 30, 2022, respectively.

18

The composition of allowance for credit losses by portfolio segment based on evaluation method was as follows:

	As of September 30, 2023
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
Loans held for investment, net of unearned income
Individually evaluated for impairment	$	224	$	17,687	$	12,759	$	1,167	$	—	$	31,837
Collectively evaluated for impairment	111,726		1,061,086		2,163,258		628,879		69,183		4,034,132
Total	$	111,950	$	1,078,773	$	2,176,017	$	630,046	$	69,183	$	4,065,969
Allowance for credit losses:
Individually evaluated for impairment	$	—	$	2,879	$	1,128	$	46	$	—	$	4,053
Collectively evaluated for impairment	537		19,184		22,659		4,597		570		47,547
Total	$	537	$	22,063	$	23,787	$	4,643	$	570	$	51,600

	As of December 31, 2022
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
Loans held for investment, net of unearned income
Individually evaluated for impairment	$	2,531	$	2,184	$	15,768	$	1,650	$	—	$	22,133
Collectively evaluated for impairment	112,789		1,052,978		1,964,250		612,778		75,596		3,818,391
Total	$	115,320	$	1,055,162	$	1,980,018	$	614,428	$	75,596	$	3,840,524
Allowance for credit losses:
Individually evaluated for impairment	$	500	$	600	$	705	$	180	$	—	$	1,985
Collectively evaluated for impairment	423		22,255		19,418		4,498		621		47,215
Total	$	923	$	22,855	$	20,123	$	4,678	$	621	$	49,200

The following tables present the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans:

	As of September 30, 2023
(in thousands)	Primary Type of Collateral
	Real Estate		Equipment		Other		Total		ACL Allocation
Agricultural	$	12	$	212	$	—	$	224	$	—
Commercial and industrial	15,992		326		1,369		17,687		2,879
Commercial real estate:
Construction and development	—		—		—		—		—
Farmland	5,582		—		—		5,582		—
Multifamily	—		—		—		—		—
Commercial real estate-other	6,991		—		186		7,177		1,128
Residential real estate:
One- to four- family first liens	546		—		—		546		—
One- to four- family junior liens	—		—		621		621		46
Consumer	—		—		—		—		—
Total	$	29,123	$	538	$	2,176	$	31,837	$	4,053

	As of December 31, 2022
(in thousands)	Primary Type of Collateral
	Real Estate		Equipment		Other		Total		ACL Allocation
Agricultural	$	68	$	2,463	$	—	$	2,531	$	500
Commercial and industrial	856		736		592		2,184		600
Commercial real estate:
Construction and development	—		—		—		—		—
Farmland	4,515		—		—		4,515		—
Multifamily	—		—		—		—		—
Commercial real estate-other	11,006		—		247		11,253		705
Residential real estate:
One- to four- family first liens	929		—		—		929		—
One- to four- family junior liens	—		—		721		721		180
Consumer	—		—		—		—		—
Total	$	17,374	$	3,199	$	1,560	$	22,133	$	1,985

19

Loan Modifications to Borrowers Experiencing Financial Difficulty

Occasionally, the Company may modify loans to borrowers who are experiencing financial difficulty. Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, term extension, an other-than-insignificant payment delay, interest rate reduction, or combination thereof.

The following table presents the amortized cost basis of loans as of September 30, 2023 that were modified during the three and nine months ended September 30, 2023 and experiencing financial difficulty at the time of the modification by class and by type of modification:

	For the Three Months and Nine Months Ended September 30, 2023
									Combination:
(dollars in thousands)	Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction		Term Extension & Interest Rate Reduction		Principal Forgiveness & Term Extension		Principal Forgiveness, Term Extension, & Interest Rate Reduction		Payment Delay & Term Extension		Total Class of Financing Receivable
Three Months Ended September 30, 2023
Commercial and industrial	$	—	$	—	$	2,062	$	—	$	—	$	—	$	—	$	—	0.19	%
CRE - Other	—		—		1,368		—		—		—		—		—		0.10	%
Total	$	—	$	—	$	3,430	$	—	$	—	$	—	$	—	$	—
Nine Months Ended September 30, 2023
Agricultural	$	—	$	13	$	—	$	—	$	—	$	—	$	—	$	—	0.01	%
Commercial and industrial	—		264		2,820		—		103		302		—		188		0.34	%
CRE - Farmland	—		—		1,823		—		—		—		—		—		1.00	%
CRE - Other	—		158		1,368		—		—		—		—		—		0.12	%
RRE - One- to four- family first liens	—		—		49		—		—		—		—		—		0.01	%
Total	$	—	$	435	$	6,060	$	—	$	103	$	302	$	—	$	188

The Company has no additional commitment to lend amounts to the borrowers included in the previous table as of September 30, 2023. For the three and nine months ended September 30, 2023, the Company had 8 modified loans totaling $0.3 million and 12 modified loans totaling $1.1 million, respectively, to borrowers experiencing financial difficulty that redefaulted within 12 months subsequent to the modification.

The following table presents the performance as of September 30, 2023 of loans that were modified while the borrower was experiencing financial difficulty at the time of modification in the last 12 months:

	As of September 30, 2023
(in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
Agricultural	$	—	$	—	$	13	$	—	$	13
Commercial and industrial	3,490		188		—		—		3,678
CRE - Farmland	1,823		—		—		—		1,823
CRE - Other	1,525		—		—		—		1,525
RRE - One- to four- family first liens	—		49		—		—		49
Total	$	6,838	$	237	$	13	$	—	$	7,088

20

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three and nine months ended September 30, 2023:

(dollars in thousands)	Principal Forgiveness		Weighted Average Interest Rate Reduction		Weighted Average Term Extension (Months)
Three Months Ended September 30, 2023
Commercial and industrial	$	—	—	%	9.9
CRE - Other	18		—	%	5.3
Total	$	18	—	%	8.1
Nine Months Ended September 30, 2023
Commercial and industrial	$	63	1.25	%	9.2
CRE - Farmland	—		—	%	0.9
CRE - Other	18		—	%	5.3
RRE - One- to four- family first liens	—		—	%	3.9
Total	$	81	1.25	%	6.1

5.    Derivatives, Hedging Activities and Balance Sheet Offsetting

The following table presents the total notional amounts and gross fair values of the Company’s derivatives as of the dates indicated. The derivative asset and liability balances are presented on a gross basis, prior to the application of master netting agreements, as included in other assets and other liabilities, respectively, on the consolidated balance sheets. The fair values of the Company's derivative instrument assets and liabilities are summarized as follows:

	As of September 30, 2023						As of December 31, 2022
	Notional Amount		Fair Value				Notional Amount		Fair Value
(in thousands)			Assets		Liabilities				Assets		Liabilities
Designated as hedging instruments:
Fair value hedges:
Interest rate swaps - loans	$	41,362	$	3,262	$	50	$	24,018	$	2,556	$	—
Interest rate swaps - securities	100,000		449		—		—		—		—
Cash flow hedges
Interest rate swaps	200,000		4,289		—		—		—		—
Total	$	341,362	$	8,000	$	50	$	24,018	$	2,556	$	—
Not designated as hedging instruments:
Interest rate swaps	$	364,153	$	23,408	$	23,438	$	331,197	$	21,084	$	21,087
RPAs - protection sold	186		—		—		—		—		—
RPAs - protection purchased	24,701		—		—		9,421		—		—
Interest rate lock commitments	1,474		18		—		1,372		7		—
Interest rate forward loan sales contracts	3,382		22		—		1,400		8		—
Total	$	393,896	$	23,448	$	23,438	$	343,390	$	21,099	$	21,087

Derivatives Designated as Hedging Instruments

The Company uses derivative instruments to hedge its exposure to economic risks. Certain hedging relationships are formally designated and qualify for hedge accounting under GAAP as fair value or cash flow hedges.

Fair Value Hedges - Derivatives are designated as fair value hedges to limit the Company's exposure to changes in the fair value of assets or liabilities due to movements in interest rates. The Company entered into pay-fixed receive-floating interest rate swaps to manage its exposure to changes in fair value in certain fixed-rate assets. The gain or loss on the loan fair value hedge derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income. The change in the fair value of the available for sale securities attributable to changes in the hedged risk is recorded in accumulated other comprehensive income and subsequently reclassified into interest income, as applicable, in the same period(s) to offset the changes in the fair value of the swap, which is also recognized in interest income.

Cash Flow Hedges - Derivatives are designated as cash flow hedges in order to minimize the variability in cash flows of earning assets or forecasted transactions caused by movement in interest rates. The Company entered into pay-fixed receive-variable interest rate swaps to hedge against adverse fluctuations in interest rates by reducing exposure to variability in cash

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flows relating to interest payments on the Company's variable rate debt. The gain or loss on the derivatives is recorded in accumulated other comprehensive income and subsequently reclassified into interest expense, as applicable, in the same period(s) during which the hedged transaction affects earnings. During the next 12 months, the Company estimates that an additional $3.0 million of income will be reclassified into interest expense.

The table below presents the effect of cash flow hedge accounting on AOCI for the three and nine months ended September 30, 2023 and 2022:

	Amount of Gain (Loss) Recognized in AOCI on Derivative				Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
	Three Months Ended September 30,					Three Months Ended September 30,
(in thousands)	2023		2022			2023		2022
Interest rate swaps	$	1,829	$	—	Interest Expense	$	761	$	—
	Nine Months Ended September 30,					Nine Months Ended September 30,
(in thousands)	2023		2022			2023		2022
Interest rate swaps	$	5,288	$	—	Interest Expense	$	999	$	—

The table below presents the effect of the Company’s derivative financial instruments designated as hedging instruments on the consolidated statements of income for the periods indicated:

	Location and Amount of Gain or Loss Recognized in Income on Hedging Relationships
	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
	2023				2022				2023				2022
(in thousands)	Interest Income		Other Income		Interest Income		Other Income		Interest Income		Other Income		Interest Income		Other Income
Income and expense included in the consolidated statements of income related to the effects of fair value or cash flow hedges are recorded	$	317	$	—	$	24	$	—	$	666	$	—	$	(147)	$	—
The effects of fair value and cash flow hedging:
Gain (loss) on fair value hedging relationships in subtopic 815-20:
Interest contracts - loans:
Hedged items	(747)		—		(1,149)		—		(212)		—		(3,665)		—
Derivative designated as hedging instruments	964		—		1,175		—		1,219		—		3,519		—
Interest contracts - securities:
Hedged items	(454)		—		—		—		(454)		—		—		—
Derivative designated as hedging instruments	560		—		—		—		560		—		—		—
Income statement effect of cash flow hedging relationships in subtopic 815-20:
Interest contracts:
Amount reclassified from AOCI into income	761		—		—		—		999		—		—		—

As of September 30, 2023, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges:

Line Item in the Balance Sheet in Which the Hedged Item is Included	Carrying Amount of the Hedged Assets		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset
(in thousands)
Loans	$	38,187	$	(3,211)
Securities	$	99,546	$	(454)

Derivatives Not Designated as Hedging Instruments

Interest Rate Swaps - The Company periodically enters into commercial loan interest rate swap agreements in order to provide commercial loan customers with the ability to convert from variable to fixed interest rates. These derivative contracts relate to transactions in which the Company enters into an interest rate swap with a customer, while simultaneously entering into an offsetting interest rate swap with an institutional counterparty.

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Credit Risk Participation Agreements -The Company enters into RPAs to manage the credit exposure on interest rate contracts associated with a syndicated loan or participation agreement. The Company may enter into protection purchased RPAs with institutional counterparties to decrease or increase its exposure to a borrower. Under the RPA, the Company will receive or make payment if a borrower defaults on the related interest rate contract. The notional amount of the RPAs reflects the Company’s pro-rata share of the derivative instrument.

Interest Rate Forward Loan Sales Contracts & Interest Rate Lock Commitments - The Company enters into forward delivery contracts to sell residential mortgage loans at specific prices and dates in order to hedge the interest rate risk in its portfolio of mortgage loans held for sale and its residential mortgage interest rate lock commitments.

The following table presents the net gains (losses) recognized on the consolidated statements of income related to the derivatives not designated as hedging instruments for the periods indicated:

	Location in the Consolidated Statements of Income	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands)		2023		2022		2023		2022
Interest rate swaps	Other income	$	(27)	$	2	$	(27)	$	10
RPAs	Other income	1		—		70		1
Interest rate lock commitments	Loan revenue	(51)		(149)		11		(367)
Interest rate forward loan sales contracts	Loan revenue	(5)		91		14		63
Total		$	(82)	$	(56)	$	68	$	(293)

Offsetting of Derivatives

The Company has entered into agreements with certain counterparty financial institutions, which include master netting agreements. However, the Company has elected to account for all derivatives with counterparty institutions on a gross basis. The Company manages the risk of default by its borrower counterparties through its normal loan underwriting and credit monitoring policies and procedures.

The table below presents gross derivatives and the respective collateral received or pledged in the form of other financial instruments as of September 30, 2023 and December 31, 2022, which are generally marketable securities and/or cash. The collateral amounts in the table below are limited to the outstanding balances of the related asset or liability (after netting is applied); thus instances of over-collateralization are not shown. Further, the net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheets.

							Gross Amounts Not Offset in the Balance Sheet
(in thousands)	Gross Amounts Recognized		Gross Amounts Offset in the Balance Sheet		Net Amounts presented in the Balance Sheet		Financial Instruments		Cash Collateral Received / Paid		Net Assets /Liabilities
As of September 30, 2023
Asset Derivatives	$	31,448	$	—	$	31,448	$	—	$	22,762	$	8,686
Liability Derivatives	23,488		—		23,488		—		9,420		14,068
As of December 31, 2022
Asset Derivatives	$	23,655	$	—	$	23,655	$	—	$	18,858	$	4,797
Liability Derivatives	21,087		—		21,087		—		3,460		17,627

Credit-risk-related Contingent Features

The Company has an unsecured federal funds line with its institutional derivative counterparties. The Company has an agreement with its institutional derivative counterparties that contains a provision under which if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has an agreement with its derivative counterparties that contains a provision under which the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. As of September 30, 2023, fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $596 thousand.

6.    Goodwill and Intangible Assets

The carrying amount of goodwill was $62.5 million as of September 30, 2023 and as of December 31, 2022.

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The following table presents the gross carrying amount, accumulated amortization, and net carrying amount of other intangible assets as of the dates indicated:

	As of September 30, 2023						As of December 31, 2022
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangible	$	58,245	$	(40,171)	$	18,074	$	58,245	$	(35,822)	$	22,423
Customer relationship intangible	5,265		(4,905)		360		5,265		(4,490)		775
Other	2,700		(2,664)		36		2,700		(2,623)		77
	$	66,210	$	(47,740)	$	18,470	$	66,210	$	(42,935)	$	23,275
Indefinite-lived trade name intangible	$	7,040					$	7,040

The following table provides the estimated future amortization expense for the remaining three months of the year ending December 31, 2023 and the succeeding annual periods:

(in thousands)	Core Deposit Intangible		Customer Relationship Intangible		Other		Total
2023	$	1,328	$	103	$	10	$	1,441
2024	4,705		239		24		4,968
2025	3,751		18		2		3,771
2026	2,797		—		—		2,797
2027	1,843		—		—		1,843
Thereafter	3,650		—		—		3,650
Total	$	18,074	$	360	$	36	$	18,470

7.    Other Assets

The components of the Company's other assets as of September 30, 2023 and December 31, 2022 were as follows:

(in thousands)	September 30, 2023		December 31, 2022
Bank-owned life insurance	$	97,383	$	95,539
Interest receivable	30,095		27,090
FHLB stock	14,869		19,248
Mortgage servicing rights	13,438		13,421
Operating lease right-of-use assets, net	2,593		2,492
Federal and state income taxes, current	—		2,366
Federal and state income taxes, deferred	37,641		39,071
Derivative assets	31,448		23,655
Other receivables/assets	16,569		13,635
	$	244,036	$	236,517

8.    Deposits

The following table presents the composition of our deposits as of the dates indicated:

(in thousands)	September 30, 2023		December 31, 2022
Noninterest bearing deposits	$	924,213	$	1,053,450
Interest checking deposits	1,334,481		1,624,278
Money market deposits	1,127,287		937,340
Savings deposits	619,805		664,169
Time deposits of $250 and under	923,709		559,466
Time deposits over $250	433,829		630,239
Total deposits	$	5,363,324	$	5,468,942

The Company had $10.9 million and $4.3 million in reciprocal time deposits as of September 30, 2023 and December 31, 2022, respectively. Included in money market deposits at September 30, 2023 and December 31, 2022 were $149.6 million and $40.0 million, respectively, of interest-bearing reciprocal deposits. Included in noninterest bearing deposits at September 30, 2023 were $70.1 million of noninterest-bearing reciprocal deposits, with no noninterest-bearing reciprocal deposits at December 31, 2022. These reciprocal deposits are part of the IntraFi Network Deposits program, which is used by financial institutions to spread deposits that exceed the FDIC insurance coverage limits out to numerous institutions in order to provide insurance

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coverage for all participating deposits. In addition, the Company had $220.1 million as of September 30, 2023 and $126.8 million as of December 31, 2022 of brokered deposits.

As of September 30, 2023 and December 31, 2022, the Company had public entity deposits that were collateralized by investment securities of $221.4 million and $387.8 million, respectively.

9.    Short-Term Borrowings

The following table summarizes our short-term borrowings as of the dates indicated:

	September 30, 2023				December 31, 2022
(in thousands)	Weighted Average Rate		Balance		Weighted Average Rate		Balance
Securities sold under agreements to repurchase	0.73	%	$	9,256	1.32	%	$	156,373
Federal Home Loan Bank advances	5.53		139,700		4.48		235,500
Federal Reserve Bank borrowings	5.03		225,000		—		—
Total	5.11	%	$	373,956	3.22	%	$	391,873

Securities Sold Under an Agreement to Repurchase - Securities sold under agreements to repurchase are agreements in which the Company acquires funds by selling assets to another party under a simultaneous agreement to repurchase the same assets at a specified price and date. The Company enters into repurchase agreements and also offers a demand deposit account product to customers that sweeps their balances in excess of an agreed upon target amount into overnight repurchase agreements. All securities sold under agreements to repurchase are recorded on the face of the balance sheet.

Federal Home Loan Bank Advances - The Bank has a secured line of credit with the FHLBDM. Advances from the FHLBDM are collateralized primarily by one- to four-family residential, commercial and agricultural real estate first mortgages equal to various percentages of the total outstanding notes. See Note 4. Loans Receivable and the Allowance for Credit Losses of the notes to the consolidated financial statements.

Federal Funds Purchased - The Bank has unsecured federal funds lines totaling $155.0 million from multiple correspondent banking relationships. There were no borrowings from such lines at either September 30, 2023 or December 31, 2022.

Other - At September 30, 2023 and December 31, 2022, the Company had no Federal Reserve Discount Window borrowings, while the financing capacity was $515.4 million as of September 30, 2023 and $105.6 million as of December 31, 2022. At September 30, 2023, the Company had $225.0 million Bank Term Funding Program borrowings, with additional borrowing capacity of $224.3 million as of September 30, 2023. As of September 30, 2023 and December 31, 2022, the Bank had municipal securities with a market value of $880.5 million and $115.2 million, respectively, pledged to the Federal Reserve Bank of Chicago to secure potential borrowings.

The Company has a credit agreement with a correspondent bank with a revolving commitment of $25.0 million. The credit agreement was amended on September 19, 2023 such that the revolving commitment matures on September 30, 2024, with no updates made to the fee structure or the interest rate. Fees are paid on the average daily unused revolving commitment in the amount of 0.30% per annum. Interest is payable at a rate equal to the monthly reset term SOFR rate plus 1.55%. The Company had no balance outstanding under this revolving credit facility as of both September 30, 2023 and December 31, 2022.

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10.    Long-Term Debt

Junior Subordinated Notes Issued to Capital Trusts

The table below summarizes the terms of each issuance of junior subordinated notes outstanding as of the dates indicated:

(in thousands)	Face Value		Book Value		Interest Rate	Rate		Maturity Date	Callable Date
September 30, 2023
ATBancorp Statutory Trust I	$	7,732	$	6,959	Three-month CME Term SOFR + 0.26% Spread + 1.68% Margin	7.35	%	06/15/2036	06/15/2011
ATBancorp Statutory Trust II	12,372		11,018		Three-month CME Term SOFR + 0.26% Spread + 1.65% Margin	7.32	%	09/15/2037	06/15/2012
Barron Investment Capital Trust I	2,062		1,854		Three-month CME Term SOFR + 0.26% Spread + 2.15% Margin	7.81	%	09/23/2036	09/23/2011
Central Bancshares Capital Trust II	7,217		6,954		Three-month CME Term SOFR + 0.26% Spread + 3.50% Margin	9.17	%	03/15/2038	03/15/2013
MidWestOne Statutory Trust II	15,464		15,464		Three-month CME Term SOFR + 0.26% Spread + 1.59% Margin	7.26	%	12/15/2037	12/15/2012
Total	$	44,847	$	42,249
December 31, 2022
ATBancorp Statutory Trust I	$	7,732	$	6,928	Three-month LIBOR + 1.68%	6.45	%	06/15/2036	06/15/2011
ATBancorp Statutory Trust II	12,372		10,969		Three-month LIBOR + 1.65%	6.42	%	09/15/2037	06/15/2012
Barron Investment Capital Trust I	2,062		1,832		Three-month LIBOR + 2.15%	6.88	%	09/23/2036	09/23/2011
Central Bancshares Capital Trust II	7,217		6,923		Three-month LIBOR + 3.50%	8.27	%	03/15/2038	03/15/2013
MidWestOne Statutory Trust II	15,464		15,464		Three-month LIBOR + 1.59%	6.36	%	12/15/2037	12/15/2012
Total	$	44,847	$	42,116

The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated notes at the stated maturity date or upon redemption of the junior subordinated notes. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated notes. The Company’s obligation under the junior subordinated notes and other relevant trust agreements, in aggregate, constitutes a full and unconditional guarantee by the Company of each trust’s obligations under the trust preferred securities issued by each trust. The Company has the right to defer payment of interest on the junior subordinated notes and, therefore, distributions on the trust preferred securities, for up to five years, but not beyond the stated maturity date in the table above. During any such deferral period the Company may not pay cash dividends on its stock and generally may not repurchase its stock.

Subordinated Debentures

On July 28, 2020, the Company completed the private placement offering of $65.0 million of its subordinated notes, of which $63.75 million have been exchanged for subordinated notes registered under the Securities Act of 1933. The 5.75% fixed-to-floating rate subordinated notes are due July 30, 2030. At September 30, 2023, 100% of the subordinated notes qualified as Tier 2 capital. Per applicable Federal Reserve rules and regulations, the amount of the subordinated notes qualifying as Tier 2 regulatory capital will be phased-out by 20% of the amount of the subordinated notes in each of the five years beginning on the fifth anniversary preceding the maturity date of the subordinated notes.

Other Long-Term Debt

Other long-term borrowings were as follows as of September 30, 2023 and December 31, 2022:

	September 30, 2023				December 31, 2022
(in thousands)	Weighted Average Rate		Balance		Weighted Average Rate		Balance
Finance lease payable	8.89	%	$	652	8.89	%	$	787
FHLB borrowings	3.11		6,270		2.91		17,301
Note payable to unaffiliated bank	6.88		11,250		5.67		15,000
Total	5.65	%	$	18,172	4.30	%	$	33,088

On June 7, 2022, the Company entered into an unsecured note payable with a correspondent bank with a maturity date of June 30, 2027. Payments of principal and interest are payable quarterly, and began on September 30, 2022. Interest is payable at the monthly reset term SOFR plus 1.55%.

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As a member of the FHLBDM, the Bank may borrow funds from the FHLB in amounts up to 45% of the Bank’s total assets, provided the Bank is able to pledge an adequate amount of qualified assets to secure the borrowings. Advances from the FHLB are collateralized primarily by one- to four-family residential, commercial and agricultural real estate first mortgages equal to various percentages of the total outstanding notes. See Note 4. Loans Receivable and the Allowance for Credit Losses of the notes to the unaudited consolidated financial statements.

As of September 30, 2023, FHLB borrowings were as follows:

(in thousands)	Weighted Average Rate		Amount
Due in 2024	3.11	%	6,250
Valuation adjustment from acquisition accounting			20
Total			$	6,270

11.    Earnings per Share

The following table present the computation of basic and diluted earnings per common share for the periods indicated:

	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands, except per share amounts)	2023		2022		2023		2022
Basic Earnings Per Share:
Net income	$	9,138	$	18,317	$	18,129	$	44,833
Weighted average shares outstanding	15,688,502		15,623,498		15,672,989		15,657,917
Basic earnings per common share	$	0.58	$	1.17	$	1.16	$	2.86
Diluted Earnings Per Share:
Net income	$	9,138	$	18,317	$	18,129	$	44,833
Weighted average shares outstanding, including all dilutive potential shares	15,711,137		15,654,443		15,696,071		15,686,098
Diluted earnings per common share	$	0.58	$	1.17	$	1.15	$	2.86

12.    Regulatory Capital Requirements and Restrictions on Subsidiary Cash

Regulatory Capital and Reserve Requirement - The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's consolidated financial statements. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

As of September 30, 2023 and December 31, 2022, the Bank was not required to maintain reserve balances in cash on hand or on deposit with Federal Reserve Banks, and therefore the total amount held in reserve for each of these periods was zero dollars.

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A comparison of the Company's and the Bank's capital with the corresponding minimum regulatory requirements in effect at September 30, 2023 and December 31, 2022, is presented below:

	Actual		For Capital Adequacy Purposes With Capital Conservation Buffer(1)		To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount	Ratio	Amount	Ratio	Amount	Ratio
At September 30, 2023
Consolidated:
Total capital/risk weighted assets(1)	$668,678	12.45%	$564,137	10.50%	N/A	N/A
Tier 1 capital/risk weighted assets(1)	553,807	10.31	456,682	8.50	N/A	N/A
Common equity tier 1 capital/risk weighted assets(1)	511,558	9.52	376,091	7.00	N/A	N/A
Tier 1 leverage capital/average assets	553,807	8.58	258,071	4.00	N/A	N/A
MidWestOne Bank:
Total capital/risk weighted assets(1)	$662,831	12.36%	$563,166	10.50%	$536,348	10.00%
Tier 1 capital/risk weighted assets(1)	612,960	11.43	455,896	8.50	429,079	8.00
Common equity tier 1 capital/risk weighted assets(1)	612,960	11.43	375,444	7.00	348,626	6.50
Tier 1 leverage capital/average assets	612,960	9.51	257,931	4.00	322,414	5.00
At December 31, 2022
Consolidated:
Total capital/risk weighted assets(1)	$653,380	12.07%	$568,452	10.50%	N/A	N/A
Tier 1 capital/risk weighted assets(1)	544,300	10.05	460,175	8.50	N/A	N/A
Common equity tier 1 capital/risk weighted assets(1)	502,184	9.28	378,968	7.00	N/A	N/A
Tier 1 leverage capital/average assets	544,300	8.35	260,891	4.00	N/A	N/A
MidWestOne Bank:
Total capital/risk weighted assets(1)	$654,297	12.10%	$567,684	10.50%	$540,652	10.00%
Tier 1 capital/risk weighted assets(1)	610,217	11.29	459,554	8.50	432,522	8.00
Common equity tier 1 capital/risk weighted assets(1)	610,217	11.29	378,456	7.00	351,424	6.50
Tier 1 leverage capital/average assets	610,217	9.36	260,776	4.00	325,970	5.00

(1) Includes a capital conservation buffer of 2.50%.

13.    Commitments and Contingencies

Credit-related financial instruments - The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, commitments to sell loans, and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheets.

The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The following table summarizes the Bank’s commitments as of the dates indicated:

	September 30, 2023		December 31, 2022
(in thousands)
Commitments to extend credit	$	1,242,267	$	1,190,607
Commitments to sell loans	2,528		612
Standby letters of credit	9,078		18,398
Total	$	1,253,873	$	1,209,617

The Bank’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the party. Collateral held varies, but may include accounts receivable, crops, livestock, inventory, property and equipment, residential real estate and income-producing commercial properties.

Commitments to sell loans are agreements to sell loans held for sale to third parties at an agreed upon price.

Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements and, generally, have terms of one year or

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less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank holds collateral, which may include accounts receivable, inventory, property, equipment and income-producing properties, that support those commitments, if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Bank would be required to fund the commitment. The maximum potential amount of future payments the Bank could be required to make is represented by the contractual amount shown in the summary above. If the commitment is funded, the Bank would be entitled to seek recovery from the customer.

Liability for Off-Balance Sheet Credit Losses - The Company records a liability for off-balance sheet credit losses through a charge to credit loss expense (or a reversal of credit loss expense) on the Company's consolidated statements of income and other liabilities on the Company's consolidated balance sheets. At September 30, 2023 and December 31, 2022, the liability for off-balance-sheet credit losses totaled $4.8 million. For the nine months ended September 30, 2023, no credit loss expense was recorded, while a credit loss expense of $0.8 million was recorded for the nine months ended September 30, 2022.

Litigation - In the normal course of business, the Company and its subsidiaries have been named, from time to time, as defendants in various legal actions. Certain of the actual or threatened legal actions may include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. Management, after consulting with legal counsel, is of the opinion that the ultimate liability, if any, resulting from these pending or threatened actions and proceedings will not have a material effect on the financial statements of the Company.

Concentrations of credit risk - Substantially all of the Bank’s loans, commitments to extend credit and standby letters of credit have been granted to customers in the Bank’s market areas. Although the loan portfolio of the Bank is diversified, approximately 65% of the loans are real estate loans, excluding farmland, and approximately 7% are agriculturally related. The concentrations of credit by type of loan are set forth in Note 4. Loans Receivable and the Allowance for Credit Losses. Commitments to extend credit are primarily related to commercial loans and home equity loans. Standby letters of credit were granted primarily to commercial borrowers. Investments in securities issued by state and political subdivisions involve certain governmental entities within Iowa, California, and Minnesota. The carrying value of investment securities of Iowa, California and Minnesota political subdivisions totaled 13%, 11%, and 10%, respectively, as of September 30, 2023.

14.    Fair Value of Financial Instruments and Fair Value Measurements

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  There are three levels of inputs that may be used to measure fair values:

•Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

•Level 2 – Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

•Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

For additional information regarding the valuation methodologies used to measure the Company's assets recorded at fair value, and for estimating fair value for financial instruments not recorded at fair value, see Note 1. Nature of Business and Significant Accounting Policies and Note 20. Estimated Fair Value of Financial Instruments and Fair Value Measurements to the consolidated financial statements in the Company's 2022 Annual Report on Form 10-K, filed with the SEC on March 13, 2023.

The Company uses fair value to measure certain assets and liabilities on a recurring basis, primarily available for sale debt securities, derivatives and mortgage servicing rights. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period, and such measurements are therefore considered "nonrecurring" for purposes of disclosing the Company's fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for collateral dependent individually analyzed loans and other real estate owned.

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Recurring Basis

The following tables summarize assets and liabilities measured at fair value on a recurring basis at the dates indicated, by level within the fair value hierarchy:

	Fair Value Measurement at September 30, 2023 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Assets:
Available for sale debt securities:
State and political subdivisions	$	162,468	$	—	$	162,468	$	—
Mortgage-backed securities	5,327		—		5,327		—
Collateralized loan obligations	52,453		—		52,453		—
Collateralized mortgage obligations	131,923		—		131,923		—
Corporate debt securities	520,599		—		520,599		—
Derivative assets	31,448		—		31,430		18
Mortgage servicing rights	13,438		—		13,438		—
Liabilities:
Derivative liabilities	$	23,488	$	—	$	23,488	$	—

	Fair Value Measurement at December 31, 2022 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Assets:
Debt securities available for sale:
U.S. Government agencies and corporations	$	7,345	$	—	$	7,345	$	—
State and political subdivisions	285,356		—		285,356		—
Mortgage-backed securities	5,944		—		5,944		—
Collateralized mortgage obligations	147,193		—		147,193		—
Corporate debt securities	707,709		—		707,709		—
Derivative assets	23,655		—		23,648		7
Mortgage servicing rights	13,421		—		13,421		—
Liabilities:
Derivative liabilities	$	21,087	$	—	$	21,087	$	—

There were no transfers of assets between Level 3 and other levels of the fair value hierarchy during the nine months ended September 30, 2023 or the year ended December 31, 2022. Changes in the fair value of available for sale debt securities, including the changes attributable to the hedged risk, are included in other comprehensive income.

The following table presents the valuation technique, significant unobservable inputs, and quantitative information about the unobservable inputs used for fair value measurements of the financial instruments held by the Company and categorized within Level 3 of the fair value hierarchy at the dates indicated:

	Fair Value at
(dollars in thousands)	September 30, 2023		December 31, 2022		Valuation Techniques(s)	Unobservable Input	Range of Inputs			Weighted Average
Interest rate lock commitments	$	18	$	7	Quoted or published market prices of similar instruments, adjusted for factors such as pull-through rate assumptions	Pull-through rate	70%	-	100%	85%

Nonrecurring Basis

The following table presents assets measured at fair value on a nonrecurring basis at the dates indicated:

	Fair Value Measurement at September 30, 2023 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Collateral dependent individually analyzed loans	$	8,479	$	—	$	—	$	8,479

	Fair Value Measurement at December 31, 2022 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Collateral dependent individually analyzed loans	$	3,159	$	—	$	—	$	3,159
Foreclosed assets, net	103		—		—		103

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The following table presents the valuation technique(s), unobservable inputs, and quantitative information about the unobservable inputs used for fair value measurements of the financial instruments held by the Company and categorized within Level 3 of the fair value hierarchy at the dates indicated:

	Fair Value at
(dollars in thousands)	September 30, 2023		December 31, 2022		Valuation Techniques(s)	Unobservable Input	Range of Inputs			Weighted Average
Collateral dependent individually analyzed loans	$	8,479	$	3,159	Fair value of collateral	Valuation adjustments	—%	-	55%	12%
Foreclosed assets, net	$	—	$	103	Fair value of collateral	Valuation adjustments	N/A(1)
(1) Quantitative disclosures are not provided for foreclosed assets, net because there were no adjustments made to the appraisal values or stated values during the period.

Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values.

Carrying Amount and Estimated Fair Value of Financial Instruments

The carrying amount and estimated fair value of financial instruments at September 30, 2023 and December 31, 2022 were as follows:

	September 30, 2023
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	74,788	$	74,788	$	74,788	$	—	$	—
Debt securities available for sale	872,770		872,770		—		872,770		—
Debt securities held to maturity	1,085,751		848,363		—		848,363		—
Loans held for sale	2,528		2,564		—		2,564		—
Loans held for investment, net	4,014,369		3,873,341		—		—		3,873,341
Interest receivable	30,095		30,095		—		30,095		—
FHLB stock	14,869		14,869		—		14,869		—
Derivative assets	31,448		31,448		—		31,430		18
Financial liabilities:
Noninterest bearing deposits	924,213		924,213		924,213		—		—
Interest bearing deposits	4,439,111		4,424,216		3,081,572		1,342,644		—
Short-term borrowings	373,956		373,956		373,956		—		—
Finance leases payable	652		652		—		652		—
FHLB borrowings	6,270		6,269		—		6,269		—
Junior subordinated notes issued to capital trusts	42,249		37,900		—		37,900		—
Subordinated debentures	64,105		62,809		—		62,809		—
Other long-term debt	11,250		11,250		—		11,250		—
Derivative liabilities	23,488		23,488		—		23,488		—

	December 31, 2022
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	86,435	$	86,435	$	86,435	$	—	$	—
Debt securities available for sale	1,153,547		1,153,547		—		1,153,547		—
Debt securities held to maturity	1,129,421		924,894		—		924,894		—
Loans held for sale	612		622		—		622		—
Loans held for investment, net	3,791,324		3,702,527		—		—		3,702,527
Interest receivable	27,090		27,090		—		27,090		—
FHLB stock	19,248		19,248		—		19,248		—
Derivative assets	23,655		23,655		—		23,648		7
Financial liabilities:
Noninterest bearing deposits	1,053,450		1,053,450		1,053,450		—		—
Interest bearing deposits	4,415,492		4,393,315		3,225,787		1,167,528		—
Short-term borrowings	391,873		391,873		391,873		—		—
Finance leases payable	787		787		—		787		—
FHLB borrowings	17,301		17,032		—		17,032		—
Junior subordinated notes issued to capital trusts	42,116		39,023		—		39,023		—
Subordinated debentures	64,006		64,004		—		64,004		—
Other long-term debt	15,000		15,000		—		15,000		—
Derivative liabilities	21,087		21,087		—		21,087		—

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15.    Leases

The Company's lease commitments consist primarily of real estate property for banking offices and office space with terms extending through 2045. Substantially all of our leases are classified as operating leases, with the Company only holding one existing finance lease for a banking office location with a lease term through 2025.

(in thousands)	Classification	September 30, 2023			December 31, 2022
Operating lease right-of-use assets	Other assets	$	2,593		$	2,492
Finance lease right-of-use asset	Premises and equipment, net	279			350
Total right-of-use assets		$	2,872		$	2,842
Operating lease liability	Other liabilities	$	3,365		$	3,359
Finance lease liability	Long-term debt	652			787
Total lease liabilities		$	4,017		$	4,146
Weighted-average remaining lease term:	Operating leases	9.78 years			9.23 years
	Finance lease	2.92 years			3.67 years
Weighted-average discount rate:	Operating leases	4.33		%	4.23		%
	Finance lease	8.89		%	8.89		%

The following table represents lease costs and other lease information. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2023		2022		2023		2022
Lease Costs
Operating lease cost	$	297	$	290	$	885	$	874
Variable lease cost	4		7		15		49
Interest on lease liabilities(1)	15		19		47		58
Amortization of right-of-use assets	24		24		72		72
Net lease cost	$	340	$	340	$	1,019	$	1,053
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	602	$	553	$	1,799	$	1,689
Operating cash flows from finance lease	15		19		47		58
Finance cash flows from finance lease	46		41		135		121
Supplemental non-cash information on lease liabilities:
Right-of-use assets obtained in exchange for new operating lease liabilities	526		599		857		638

(1)Included in long-term debt interest expense in the Company’s consolidated statements of income. All other lease costs in this table are included in occupancy expense of premises, net.

Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more for the remaining three-months ending December 31, 2023 and the succeeding annual periods were as follows:

(in thousands)	Finance Leases		Operating Leases
December 31, 2023	$	62	$	318
December 31, 2024	250		1,047
December 31, 2025	254		568
December 31, 2026	172		430
December 31, 2027	—		302
Thereafter	—		1,738
Total undiscounted lease payment	$	738	$	4,403
Amounts representing interest	(86)		(1,038)
Lease liability	$	652	$	3,365

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16.    Subsequent Events

The Company has evaluated events that have occurred subsequent to September 30, 2023 and has concluded there are no other subsequent events that would require recognition in the accompanying consolidated financial statements.

On October 24, 2023, the board of directors of the Company declared a cash dividend of $0.2425 per share payable on December 15, 2023 to shareholders of record as of the close of business on December 1, 2023.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Form 10-Q contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are “forward-looking” and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “should,” “could,” “would,” “plans,” “intend,” “project,” “estimate,” “forecast,” “may” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law.

Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following:

•the risks of mergers (including with Iowa First Bancshares Corp. and Denver Bankshares, Inc.) or branch sales, including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions;

•credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings;

•the effects of recent and potential additional increases in inflation and interest rates, including on our net income and the value of our securities portfolio;

•changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing;

•fluctuations in the value of our investment securities;

•governmental monetary and fiscal policies;

•changes in and uncertainty related to benchmark interest rates used to price loans and deposits;

•legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, including the new 1.0% excise tax on stock buybacks by publicly traded companies and any changes in response to the recent failures of other banks;

•the ability to attract and retain key executives and employees experienced in banking and financial services;

•the sufficiency of the allowance for credit losses to absorb the amount of actual losses inherent in our existing loan portfolio;

•our ability to adapt successfully to technological changes to compete effectively in the marketplace;

•credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio;

•the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services;

•the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities;

•volatility of rate-sensitive deposits;

•operational risks, including data processing system failures or fraud;

•asset/liability matching risks and liquidity risks;

•the costs, effects and outcomes of existing or future litigation;

•changes in general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession;

•changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the FASB;

•war or terrorist activities, including the Israeli-Palestinian conflict and the Russian Invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets;

•the occurrence of fraudulent activity, breaches, or failures of our information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools;

•the imposition of tariffs or other domestic or international governmental policies impacting the value of the agricultural or other products of our borrowers;

•effects of the ongoing COVID-19 pandemic, including its effects on the economic environment, our customers, employees and supply chain;

•the concentration of large deposits from certain clients who have balances above current FDIC insurance limits;

•the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time at other banks that resulted in failure of those institutions; and

•factors and risks described under “Risk Factors” in this Form 10-Q and in other reports we file with the SEC.

We qualify all of our forward-looking statements by the foregoing cautionary statements. Because of these risks and other uncertainties, our actual future results, performance or achievement, or industry results, may be materially different from the results indicated by these forward-looking statements. In addition, our past results of operations are not necessarily indicative of our future results.

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OVERVIEW

The Company provides financial services to individuals, businesses, governmental units and institutional customers located primarily in the upper Midwest through its bank subsidiary, MidWestOne Bank. The Bank has locations throughout central and eastern Iowa, the Minneapolis/St. Paul metropolitan area of Minnesota, southwestern Wisconsin, Naples and Fort Myers, Florida, and Denver, Colorado.

On September 25, 2023, the Company announced the execution of a definitive purchase and assumption agreement for the sale of its Florida operations to DFCU Financial. The transaction is an all cash deal and is expected to close in the second quarter of 2024 subject to customary approvals.

On September 27, 2023, the Company announced the execution of a definitive merger agreement for the acquisition of DNVB, the parent company for the Bank of Denver ("Bank of Denver"). This transaction is an all cash deal and is expected to close in the first quarter of 2024 subject to customary approvals.

On June 9, 2022, the Company completed the acquisition of IOFB, a bank holding company headquartered in Muscatine, Iowa, and the parent company of FNBM and FNBF. Immediately following the completion of the acquisition, FNBM and FNBF were merged with and into the Bank. As consideration for the merger, we paid cash of $46.7 million. The acquisition added to the Company's existing presence in Fairfield, Iowa and expanded the Company's footprint into Muscatine, Iowa.

The Bank is focused on delivering relationship-based business and personal banking products and services. The Bank provides commercial loans, real estate loans, agricultural loans, credit card loans, and consumer loans. The Bank also provides deposit products including demand and interest checking accounts, savings accounts, money market accounts, and time deposits. Complementary to our loan and deposit products, the Bank also provides products and services including treasury management, Zelle, online and mobile banking, credit and debit cards, ATMs, and safe deposit boxes. The Bank also has a trust department through which it offers services including the administration of estates, personal trusts, and conservatorships and the management of real property. Finally, the Bank’s investment services department offers financial planning, investment advisory, and retail securities brokerage services (the latter of which is provided through an agreement with a third-party registered broker-dealer).

Our results of operations are significantly affected by our net interest income. Results of operations are also affected by noninterest income and expense, credit loss expense and income tax expense. Significant external factors that impact our results of operations include general economic and competitive conditions, as well as changes in market interest rates, government policies, and actions of regulatory authorities.

The following discussion and analysis should be read in conjunction with the consolidated financial statements and related notes and the statistical information and financial data appearing in this report as well as our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 13, 2023. Results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of results to be attained for any other period.

FINANCIAL SUMMARY

The Company reported net income for the three months ended September 30, 2023 of $9.1 million, a decrease of $9.2 million, compared to $18.3 million of net income for the three months ended September 30, 2022, with diluted earnings per share of $0.58 and $1.17, respectively. For the nine months ended September 30, 2023, the Company reported net income of $18.1 million, a decrease of $26.7 million, compared to $44.8 million of net income for the nine months ended September 30, 2022, with diluted earnings per share of $1.15 and $2.86 for the respective annual periods.

The period as of and for the three and nine months ended September 30, 2023 was also highlighted by the following results:

Balance Sheet:

•Total assets decreased to $6.47 billion at September 30, 2023 from $6.58 billion at December 31, 2022, primarily as a result of the sale of $231 million in book value of available for sale debt securities in the first quarter of 2023, coupled with a decline in held to maturity debt securities, and partially offset by an increase in loans held for investment, net of unearned income of $225.4 million.

•At September 30, 2023 the total amount of the held to maturity debt securities was $1.09 billion and the total amount of the debt securities available for sale was $872.8 million. There were $1.13 billion held to maturity debt securities at December 31, 2022, while the total amount of the debt securities available for sale was $1.15 billion.

•Gross loans held for investment increased $223.3 million, from $3.85 billion at December 31, 2022, to $4.08 billion at September 30, 2023. This increase was primarily driven by new loan production.

•The allowance for credit losses was $51.6 million, or 1.27% of total loans at September 30, 2023, compared with $49.2 million, or 1.28% of total loans, at December 31, 2022.

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•Nonperforming assets increased $13.1 million, from $15.9 million at December 31, 2022, to $29.0 million at September 30, 2023, primarily due to the downgrade of a single commercial relationship.

•Total deposits decreased $105.6 million from $5.47 billion at December 31, 2022, to $5.36 billion at September 30, 2023.

•Short-term borrowings declined to $374.0 million at September 30, 2023, from $391.9 million at December 31, 2022, and long-term debt decreased to $124.5 million at September 30, 2023 from $139.2 million at December 31, 2022.

•The Company is well-capitalized with a total risk-based capital ratio of 12.45% at September 30, 2023.

Income Statement:

Three Months Ended:

•Tax equivalent net interest income (a non-GAAP financial measure - see the "Non-GAAP Presentations" section for a reconciliation to the most comparable GAAP equivalent) was $35.7 million for the third quarter of 2023, a decrease of $11.3 million, from $47.0 million in the third quarter of 2022. The decrease in tax equivalent net interest income was due primarily to an increase in interest expense on interest-bearing deposits and borrowed funds of $18.1 million and $3.2 million, respectively, in addition to a decrease of $1.8 million in interest income earned from investment securities. Partially offsetting these identified decreases in tax equivalent net interest income was an increase of $11.5 million in loan interest income.

•Credit loss expense of $1.6 million was recorded during the third quarter of 2023, compared to $0.6 million credit loss expense recorded in the third quarter of 2022. Credit loss expense in the current quarter was primarily attributable to individually evaluated loans.

•Noninterest income decreased $2.7 million, from $12.6 million in the third quarter of 2022 to $9.9 million in the third quarter of 2023, primarily due to the decline of $2.9 million in other revenue stemming from a settlement recognized in the third quarter of 2022 that did not recur in the third quarter of 2023.

•Noninterest expense decreased $3.1 million, from $34.6 million in the third quarter of 2022, to $31.5 million in the third quarter of 2023, due primarily a decline of $1.5 million in compensation and employee benefits related to employee benefits, incentive, and commission expenses, coupled with a $0.8 million decrease in merger-related expenses.

Nine Months Ended:

•Tax equivalent net interest income (a non-GAAP financial measure - see the "Non-GAAP Presentations" section for a reconciliation to the most comparable GAAP equivalent) was $115.2 million for the nine months ended September 30, 2023, a decrease of $11.2 million from the nine months ended September 30, 2022. The decrease was a result of increases in interest expense on interest-bearing deposits and borrowed funds of $47.4 million and $8.0 million, respectively, coupled with a decline in interest income from investment securities of $0.4 million. Partially offsetting these amounts was an increase in loan interest income of $44.0 million, reflecting higher volume and increased yield.

•Credit loss expense of $4.1 million was recorded in the first nine months of 2023, as compared to credit loss expense of $3.9 million for the first nine months of 2022. Credit loss expense in the first nine months of 2023 was primarily attributable to loan growth and individually evaluated loans, while credit loss expense in the first nine months of 2022 reflected $3.1 million related to the acquired IOFB non-PCD loans, $0.2 million related to unfunded loan commitments established in the IOFB acquisition, as well as a reserve taken to support loan growth.

•Noninterest income decreased $22.0 million, from $36.6 million for the first nine months of 2022 to $14.6 million in the first nine months of 2023. The largest driver in the decrease was the $13.2 million investment securities loss related to balance sheet repositioning executed in the first quarter of 2023. An additional significant driver was an MSR fair value adjustment of $17 thousand in the first nine months of 2023, as compared to an adjustment of $5.6 million in the first nine months of 2022. In addition, the decrease also was due to a $4.3 million decline in other revenue, which primarily stemmed from a settlement in 2022 that did not recur and the initial bargain purchase gain of $1.3 million recognized in connection with the IOFB acquisition in 2022.

•Noninterest expense increased $1.4 million, from $98.3 million for the first nine months ended September 30, 2022, to $99.8 million in the first nine months of 2023. The increase in noninterest expense was due to an overall increase in all noninterest expense categories except legal and professional, marketing, and communications. The increases were largely due to a full nine months of operations of IOFB, an increase in severance expense of $0.9 million stemming from a voluntary early retirement program, and normal annual salary and employee benefit increases. Partially offsetting these identified increases was a decline in merger-related expenses associated with the acquisition of IOFB.

Critical Accounting Estimates

Management has identified the accounting policies related to the ACL, fair value of assets acquired and liabilities assumed in a business combination, and the annual impairment testing of goodwill and other intangible assets to be critical accounting policies. Information about our critical accounting estimates is included under Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 13, 2023, and there have been no material changes in these critical accounting policies since December 31, 2022.

36

RESULTS OF OPERATIONS

Comparison of Operating Results for the Three Months Ended September 30, 2023 and September 30, 2022

Summary

	As of or for the Three Months Ended September 30,
(dollars in thousands, except per share amounts)	2023			2022
Net Interest Income	$	34,575		$	45,733
Noninterest Income	9,861			12,588
Total Revenue, Net of Interest Expense	44,436			58,321
Credit Loss Expense	1,551			638
Noninterest Expense	31,544			34,623
Income Before Income Tax Expense	11,341			23,060
Income Tax Expense	2,203			4,743
Net Income	9,138			18,317
Diluted Earnings Per Share	$	0.58		$	1.17
Return on Average Assets	0.56		%	1.13		%
Return on Average Equity	7.14			14.56
Return on Average Tangible Equity(1)	9.68			19.32
Efficiency Ratio(1)	66.06			53.67
Dividend Payout Ratio	41.81			20.30
Common Equity Ratio	7.81			7.28
Tangible Common Equity Ratio(1)	6.54			5.90
Book Value per Share	$	32.21		$	30.23
Tangible Book Value per Share(1)	26.60			24.17
(1) A non-GAAP financial measure. See "Non-GAAP Financial Measures" for a reconciliation to the most comparable GAAP equivalents.

37

Net Interest Income

The following table shows consolidated average balance sheets, detailing the major categories of assets and liabilities, the interest income earned on interest-earning assets, the interest expense paid for interest-bearing liabilities, and the related yields and costs for the periods indicated:

	Three Months Ended September 30,
	2023						2022
	Average Balance		Interest Income/ Expense		Average Yield/ Cost		Average Balance		Interest Income/ Expense		Average Yield/ Cost
(dollars in thousands)
ASSETS
Loans, including fees (1)(2)(3)	$	4,019,852	$	52,605	5.19	%	$	3,673,379	$	41,124	4.44	%
Taxable investment securities	1,637,259		9,526		2.31		1,939,517		10,635		2.18
Tax-exempt investment securities (2)(4)	341,330		2,234		2.60		431,898		2,922		2.68
Total securities held for investment (2)	1,978,589		11,760		2.36		2,371,415		13,557		2.27
Other	34,195		374		4.34		6,070		9		0.59
Total interest earning assets (2)	$	6,032,636	$	64,739	4.26	%	$	6,050,864	$	54,690	3.59	%
Other assets	420,179						406,783
Total assets	$	6,452,815					$	6,457,647
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest checking deposits	$	1,354,597	$	2,179	0.64	%	$	1,725,000	$	1,463	0.34	%
Money market deposits	1,112,149		7,402		2.64		1,016,005		1,268		0.50
Savings deposits	603,628		749		0.49		710,836		297		0.17
Time deposits	1,403,504		12,798		3.62		913,307		2,007		0.87
Total interest bearing deposits	4,473,878		23,128		2.05		4,365,148		5,035		0.46
Securities sold under agreements to repurchase	66,020		85		0.51		144,628		228		0.63
Other short-term borrowings	277,713		3,634		5.19		83,086		539		2.57
Total short-term borrowings	343,733		3,719		4.29		227,714		767		1.34
Long-term debt	125,737		2,150		6.78		159,125		1,886		4.70
Total borrowed funds	469,470		5,869		4.96		386,839		2,653		2.72
Total interest bearing liabilities	$	4,943,348	$	28,997	2.33	%	$	4,751,987	$	7,688	0.64	%
Noninterest bearing deposits	905,993						1,142,334
Other liabilities	95,408						64,063
Shareholders’ equity	508,066						499,263
Total liabilities and shareholders’ equity	$	6,452,815					$	6,457,647
Net interest income (2)			$	35,742					$	47,002
Net interest spread(2)					1.93	%					2.95	%
Net interest margin(2)					2.35	%					3.08	%
Total deposits(5)	$	5,379,871	$	23,128	1.71	%	$	5,507,482	$	5,035	0.36	%
Cost of funds(6)					1.97	%					0.52	%

(1)	Average balance includes nonaccrual loans.
(2)	Tax equivalent. The federal statutory tax rate utilized was 21%.
(3)	Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $141 thousand and $35 thousand for the three months ended September 30, 2023 and September 30, 2022, respectively. Loan purchase discount accretion was $791 thousand and $2.0 million for the three months ended September 30, 2023 and September 30, 2022, respectively. Tax equivalent adjustments were $735 thousand and $673 thousand for the three months ended September 30, 2023 and September 30, 2022, respectively. The federal statutory tax rate utilized was 21%.
(4)	Interest income includes tax equivalent adjustments of $432 thousand and $596 thousand for the three months ended September 30, 2023 and September 30, 2022, respectively. The federal statutory tax rate utilized was 21%.
(5)	Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.
(6)	Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.

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The following table shows changes to tax equivalent net interest income attributable to (i) changes in volume and (ii) changes in rate. Changes attributable to both rate and volume have been allocated proportionately to the change due to volume and the change due to rate.

	Three Months Ended September 30,
	2023 Compared to 2022
	Change due to
(in thousands)	Volume		Yield/Cost		Net
Increase (decrease) in interest income:
Loans, including fees (1)	$	4,113	$	7,368	$	11,481
Taxable investment securities	(1,722)		613		(1,109)
Tax-exempt investment securities (1)	(602)		(86)		(688)
Total securities held for investment (1)	(2,324)		527		(1,797)
Other	155		210		365
Change in interest income (1)	1,944		8,105		10,049
Increase (decrease) in interest expense:
Interest checking deposits	(370)		1,086		716
Money market deposits	133		6,001		6,134
Savings deposits	(52)		504		452
Time deposits	1,566		9,225		10,791
Total interest-bearing deposits	1,277		16,816		18,093
Securities sold under agreements to repurchase	(106)		(37)		(143)
Other short-term borrowings	2,156		939		3,095
Total short-term borrowings	2,050		902		2,952
Long-term debt	(452)		716		264
Total borrowed funds	1,598		1,618		3,216
Change in interest expense	2,875		18,434		21,309
Change in net interest income	$	(931)	$	(10,329)	$	(11,260)
Percentage increase in net interest income over prior period					(24.0)		%
(1) Tax equivalent, using a federal statutory tax rate of 21%.

Our tax equivalent net interest income for the third quarter of 2023 was $35.7 million, a decrease of $11.3 million, or 24.0%, as compared to $47.0 million for the third quarter of 2022. The decrease in tax equivalent net interest income in the third quarter of 2023 as compared to the third quarter of 2022 was due primarily to an increase in interest expense on interest bearing deposits and borrowed funds of $18.1 million and $3.2 million, respectively, due to higher costs and volumes. The decrease in tax equivalent net interest income was also due to a decrease of $1.8 million, or 13.3%, in interest income earned from investment securities, which stemmed from lower volumes. Partially offsetting these decreases was an increase of $11.5 million, or 27.9%, in loan interest income due to organic loan growth and an increase in loan yield.

The tax equivalent net interest margin for the third quarter of 2023 declined to 2.35% from 3.08% for the third quarter of 2022, driven by higher funding costs and volumes, partially offset by higher interest earning asset yields. The cost of interest bearing liabilities increased 169 bps to 2.33%, due to interest bearing deposit costs of 2.05%, short-term borrowing costs of 4.29%, and long-term debt costs of 6.78%, which increased 159 bps, 295 bps and 208 bps, respectively from the third quarter of 2022. Total interest earning assets yield increased 67 bps from the third quarter of 2022, primarily as a result of an increase in loan and securities yields of 75 bps and 9 bps, respectively.

Credit Loss Expense

Credit loss expense of $1.6 million was recorded during the third quarter of 2023, with $0.6 million credit loss expense recorded in the third quarter of 2022. Credit loss expense in the current quarter was primarily attributable to individually evaluated loans. Net charge-offs were $0.5 million in the third quarter of 2023 as compared to net charge-offs of $0.6 million in the third quarter of 2022. The estimation model utilized by the Company is sensitive to changes in the following forecast inputs: (1) Midwest unemployment, (2) year-to-year change in national retail sales, (3) year-to-year change in the CRE Index, (4) year-to-year change in U.S. GDP, (5) year-to-year change in the National Home Price Index, and (6) Rental Vacancy. In addition, management utilized qualitative factors to adjust the calculated ACL as appropriate. Qualitative factors are based on management’s judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions.

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Noninterest Income

The following table presents significant components of noninterest income and the related dollar and percentage change from period to period:

	Three Months Ended September 30,
(dollars in thousands)	2023		2022		$ Change		% Change
Investment services and trust activities	$	3,004	$	2,876	$	128	4.5	%
Service charges and fees	2,146		2,075		71		3.4
Card revenue	1,817		1,898		(81)		(4.3)
Loan revenue	1,462		1,722		(260)		(15.1)
Bank-owned life insurance	626		579		47		8.1
Investment securities gains (losses), net	79		(163)		242		(148.5)
Other	727		3,601		(2,874)		(79.8)
Total noninterest income	$	9,861	$	12,588	$	(2,727)	(21.7)	%

Total noninterest income for the third quarter of 2023 decreased $2.7 million, or 21.7%, to $9.9 million from $12.6 million in the third quarter of 2022, primarily due to the decline of $2.9 million in other revenue stemming from a settlement recognized in the third quarter of 2022 that did not recur in the third quarter of 2023.

Noninterest Expense

The following tables present significant components of noninterest expense and the related dollar and percentage change from period to period:

	Three Months Ended September 30,
(dollars in thousands)	2023		2022		$ Change		% Change
Compensation and employee benefits	$	18,558	$	20,046	$	(1,488)	(7.4)	%
Occupancy expense of premises, net	2,405		2,577		(172)		(6.7)
Equipment	2,123		2,358		(235)		(10.0)
Legal and professional	1,678		2,012		(334)		(16.6)
Data processing	1,504		1,731		(227)		(13.1)
Marketing	782		1,139		(357)		(31.3)
Amortization of intangibles	1,460		1,789		(329)		(18.4)
FDIC insurance	783		415		368		88.7
Communications	206		302		(96)		(31.8)
Foreclosed assets, net	2		42		(40)		(95.2)
Other	2,043		2,212		(169)		(7.6)
Total noninterest expense	$	31,544	$	34,623	$	(3,079)	(8.9)	%

The following table summarizes the DNVB and IOFB acquisition-related expenses, which are included in the respective income statement line items, for the periods indicated:

	Three Months Ended September 30,
Merger-related expenses:	2023		2022
(dollars in thousands)
Compensation and employee benefits	$	—	$	132
Equipment	—		14
Legal and professional	11		193
Data processing	—		304
Marketing	—		90
Other	—		30
Total merger-related expenses	$	11	$	763

Noninterest expense for the third quarter of 2023 decreased $3.1 million, or 8.9%, to $31.5 million from $34.6 million for the third quarter of 2022, with overall decreases in all noninterest expense categories except FDIC insurance. These decreases primarily reflected a $1.5 million decline in compensation and employee benefits related to employee benefits, incentive, and commission expenses, coupled with a $0.8 million decrease in merger-related expenses.

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Income Tax Expense

Our effective income tax rate, or income taxes divided by income before taxes, was 19.4% for the three months ended September 30, 2023, as compared to an effective tax rate of 20.6% for the three months ended September 30, 2022. The effective tax rate for the full year 2023 is expected to be in the range of 18% to 20%.

Comparison of Operating Results for the Nine Months Ended September 30, 2023 and September 30, 2022

Summary

	As of and for the Nine Months Ended September 30,
(dollars in thousands, except per share amounts)	2023			2022
Net Interest Income	$	111,613		$	122,794
Noninterest Income	14,561			36,579
Total Revenue, Net of Interest Expense	126,174			159,373
Credit Loss Expense	4,081			3,920
Noninterest Expense	99,782			98,348
Income Before Income Tax Expense	22,311			57,105
Income Tax Expense	4,182			12,272
Net Income	18,129			44,833
Diluted Earnings Per Share	$	1.15		$	2.86
Return on Average Assets	0.37		%	0.97		%
Return on Average Equity	4.81			11.81
Return on Average Tangible Equity(1)	7.03			15.28
Efficiency Ratio (1)	66.40			56.70
Dividend Payout Ratio	62.72			24.91
Common Equity Ratio	7.81			7.28
Tangible Common Equity Ratio(1)	6.54			5.90
Book Value per Share	$	32.21		$	30.23
Tangible Book Value per Share(1)	26.60			24.17
(1) A non-GAAP financial measure. See "Non-GAAP Financial Measures" for a reconciliation to the most comparable GAAP equivalents.

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Net Interest Income

The following table shows consolidated average balance sheets, detailing the major categories of assets and liabilities, the interest income earned on interest-earning assets, the interest expense paid for interest-bearing liabilities, and the related yields and costs for the periods indicated:

	Nine Months Ended September 30,
	2023						2022
(dollars in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Cost		Average Balance		Interest Income/ Expense		Average Yield/ Cost
ASSETS
Loans, including fees (1)(2)(3)	$	3,964,119	$	150,250	5.07	%	$	3,416,600	$	106,297	4.16	%
Taxable investment securities	1,714,912		29,704		2.32		1,899,907		28,334		1.99
Tax-exempt investment securities (2)(4)	361,254		7,136		2.64		440,542		8,895		2.70
Total securities held for investment (2)	2,076,166		36,840		2.37		2,340,449		37,229		2.13
Other	22,741		686		4.03		25,972		77		0.40
Total interest-earning assets (2)	$	6,063,026	$	187,776	4.14	%	$	5,783,021	$	143,603	3.32	%
Other assets	417,610						369,369
Total assets	$	6,480,636					$	6,152,390
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest checking deposits	$	1,429,804	$	5,999	0.56	%	$	1,642,849	$	3,713	0.30	%
Money market deposits	1,014,708		15,970		2.10		991,338		2,338		0.32
Savings deposits	620,011		1,309		0.28		671,917		863		0.17
Time deposits	1,437,122		35,286		3.28		877,923		4,204		0.64
Total interest-bearing deposits	4,501,645		58,564		1.74		4,184,027		11,118		0.36
Securities sold under agreements to repurchase	123,512		958		1.04		152,663		435		0.38
Other short-term borrowings	174,448		6,665		5.11		42,952		680		2.12
Total short-term borrowings	297,960		7,623		3.42		195,615		1,115		0.76
Long-term debt	133,375		6,427		6.44		148,053		4,975		4.49
Total borrowed funds	431,335		14,050		4.36		343,668		6,090		2.37
Total interest-bearing liabilities	$	4,932,980	$	72,614	1.97	%	$	4,527,695	$	17,208	0.51	%
Noninterest bearing deposits	958,104						1,062,156
Other liabilities	85,650						54,775
Shareholders' equity	503,902						507,764
Total liabilities and shareholders' equity	$	6,480,636					$	6,152,390
Net interest income (2)			$	115,162					$	126,395
Net interest spread(2)					2.17	%					2.81	%
Net interest margin (2)					2.54	%					2.92	%
Total deposits(5)	$	5,459,749	$	58,564	1.43	%	$	5,246,183	$	11,118	0.28	%
Cost of funds(6)					1.65	%					0.41	%

 

(1)	Average balance includes nonaccrual loans.
(2)	Tax equivalent. The federal statutory tax rate utilized was 21%.
(3)	Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $315 million and $678 thousand for the nine months ended September 30, 2023 and September 30, 2022, respectively. Loan purchase discount accretion was $3.0 million and $3.3 million for the nine months ended September 30, 2023 and September 30, 2022, respectively. Tax equivalent adjustments were $2.2 million and $1.8 million for the nine months ended September 30, 2023 and September 30, 2022, respectively. The federal statutory tax rate utilized was 21%.
(4)	Interest income includes tax equivalent adjustments of $1.4 million and $1.8 million for the nine months ended September 30, 2023 and September 30, 2022, respectively. The federal statutory tax rate utilized was 21%.
(5)	Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.
(6)	Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.

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The following table shows changes to tax equivalent net interest income attributable to (i) changes in volume and (ii) changes in rate. Changes attributable to both rate and volume have been allocated proportionately to the change due to volume and the change due to rate.

	Nine Months Ended September 30,
	2023 Compared to 2022
	Change due to
(in thousands)	Volume		Yield/Cost		Net
Increase (decrease) in interest income:
Loans, including fees (1)	$	18,585	$	25,368	$	43,953
Taxable investment securities	(2,962)		4,332		1,370
Tax-exempt investment securities(1)	(1,565)		(194)		(1,759)
Total securities held for investment(1)	(4,527)		4,138		(389)
Other	(11)		620		609
Change in interest income (1)	14,047		30,126		44,173
Increase (decrease) in interest expense:
Interest checking deposits	(534)		2,820		2,286
Money market deposits	58		13,574		13,632
Savings deposits	(70)		516		446
Time deposits	4,158		26,924		31,082
Total interest-bearing deposits	3,612		43,834		47,446
Securities sold under agreements to repurchase	(98)		621		523
Other short-term borrowings	4,097		1,888		5,985
Total short-term borrowings	3,999		2,509		6,508
Long-term debt	(533)		1,985		1,452
Total borrowed funds	3,466		4,494		7,960
Change in interest expense	7,078		48,328		55,406
Change in net interest income	$	6,969	$	(18,202)	$	(11,233)
Percentage (decrease) increase in net interest income over prior period					(8.9)		%
(1) Tax equivalent, using a federal statutory tax rate of 21%.

Our tax equivalent net interest income for the nine months ended September 30, 2023 was $115.2 million, a decrease of $11.2 million, or 8.9%, as compared to $126.4 million for the nine months ended September 30, 2022. This decrease in net interest income was due primarily to an increase in interest expense on interest bearing deposits and borrowed funds of $47.4 million and $8.0 million, respectively, due to higher costs and volumes. The decrease in tax equivalent net interest income was also due to a decrease of $0.4 million, or 1.0%, in interest income earned from investment securities, which stemmed from lower volumes. Partially offsetting these decreases was an increase of $44.0 million, or 41.3%, in loan interest income due to organic loan growth and an increase in loan yield.

The tax equivalent net interest margin for the nine months ended September 30, 2023 was 2.54%, or 38 basis points lower than the tax equivalent net interest margin of 2.92% for the nine months ended September 30, 2022. The cost of interest-bearing deposits increased 138 basis points for the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022, while the cost of borrowed funds increased 199 basis points for the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022. The increase in the cost of interest-bearing liabilities was a result of higher market interest rates, which reflect increases in the target federal funds rate. Partially offsetting these identified decreases to tax equivalent net interest margin were increases in the tax equivalent yield on loans and the tax equivalent yield on investment securities of 91 basis points and 24 basis points, respectively. Combined, the resulting yield on interest-earning assets for the nine months ended September 30, 2023 was 82 basis points higher than the nine months ended September 30, 2022, which primarily reflected new loan production originated at higher yields and the shift in earning asset mix to a greater proportion of loans, which generally have higher yields than investment securities.

Credit Loss Expense

Credit loss expense of $4.1 million was recorded in the first nine months of 2023, as compared to credit loss expense of $3.9 million for the first nine months of 2022, an increase of $0.2 million, or 4.1%. Credit loss expense in the first nine months of 2023 was primarily attributable to loan growth and individually evaluated loans. The credit loss expense recorded in the first nine months of 2022 primarily reflected $3.1 million related to the acquired IOFB non-PCD loans, $0.2 million related to unfunded loan commitments established in the IOFB acquisition, as well as a reserve taken to support loan growth. Net charge-offs in the first nine months of 2023 were $1.7 million, as compared to net charge-offs of $3.1 million in the first nine months of 2022. The estimation model utilized by the Company is sensitive to changes in the following forecast inputs: (1) Midwest

43

unemployment, (2) year-to-year change in national retail sales, (3) year-to-year change in the CRE Index, (4) year-to-year change in U.S. GDP, (5) year-to-year change in the National Home Price Index, and (6) Rental Vacancy. In addition, management utilized qualitative factors to adjust the calculated ACL as appropriate. Qualitative factors are based on management’s judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions.

Noninterest Income

The following table presents the significant components of noninterest income and the related dollar and percentage change from period to period:

	Nine Months Ended September 30,
(dollars in thousands)	2023		2022		$ Change		% Change
Investment services and trust activities	$	9,056	$	8,557	$	499	5.8	%
Service charges and fees	6,201		5,449		752		13.8
Card revenue	5,412		5,426		(14)		(0.3)
Loan revenue	3,791		9,538		(5,747)		(60.3)
Bank-owned life insurance	1,844		1,668		176		10.6
Investment securities gains (losses), net	(13,093)		272		(13,365)		n/m
Other	1,350		5,669		(4,319)		(76.2)
Total noninterest income	$	14,561	$	36,579	$	(22,018)	(60.2)	%
NM - Percentage change not considered meaningful.

Total noninterest income for the first nine months of 2023 decreased $22.0 million, or 60.2%, to $14.6 million from $36.6 million during the same period of 2022. The largest driver in the decrease was the $13.2 million investment securities loss related to balance sheet repositioning executed in the first quarter of 2023. Also contributing to the decline in noninterest income was a decrease of $5.7 million in loan revenue, primarily driven by the MSR fair value adjustment of $17 thousand in the first nine months of 2023, as compared to an adjustment of $5.6 million in the first nine months of 2022. In addition, the decrease was driven by the $4.3 million decline in other revenue, which stemmed from a settlement in 2022 that did not recur and the initial bargain purchase gain of $1.3 million recognized in connection with the IOFB acquisition in 2022.

Noninterest Expense

The following tables present the significant components of noninterest expense and the related dollar and percentage change from period to period:

	Nine Months Ended September 30,
(dollars in thousands)	2023		2022		$ Change		% Change
Compensation and employee benefits	$	58,551	$	57,665	$	886	1.5	%
Occupancy expense of premises, net	7,725		7,609		116		1.5
Equipment	6,729		6,366		363		5.7
Legal and professional	5,096		6,800		(1,704)		(25.1)
Data processing	4,388		4,199		189		4.5
Marketing	2,910		3,325		(415)		(12.5)
Amortization of intangibles	4,806		4,299		507		11.8
FDIC insurance	2,394		1,255		1,139		90.8
Communications	727		840		(113)		(13.5)
Foreclosed assets, net	(32)		(66)		34		(51.5)
Other	6,488		6,056		432		7.1
Total noninterest expense	$	99,782	$	98,348	$	1,434	1.5	%

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The following table summarizes the DNVB and IOFB acquisition-related expenses, which are included in the respective income statement line items, for the periods indicated:

Merger-related expenses:	Nine Months Ended September 30,
(dollars in thousands)	2023		2022
Compensation and employee benefits	$	70	$	282
Occupancy expense of premises, net	—		1
Equipment	—		25
Legal and professional	11		894
Data processing	65		380
Marketing	—		162
Communications	—		3
Other	1		45
Total impact of merger-related expenses to noninterest expense	$	147	$	1,792

Noninterest expense for the nine months ended September 30, 2023 was $99.8 million, an increase of $1.4 million, or 1.5%, from $98.3 million for the nine months ended September 30, 2022. The increase in noninterest expense was due to an overall increase in all noninterest expense categories except legal and professional, marketing, and communications. The increases were largely due to a full nine months of operations of IOFB. Also contributing to the increase in noninterest expense was an increase in compensation and employee benefits, primarily due to a voluntary early retirement program, which was the primary driver of the $0.9 million increase in severance expense, coupled with normal annual salary and employee benefit increases. Partially offsetting these identified increases was a decline in merger-related expenses associated with the acquisition of IOFB.

Income Tax Expense

Our effective income tax rate, or income taxes divided by income before taxes, was 18.7% for the first nine months of 2023, as compared to an effective tax rate of 21.5% for the first nine months of 2022. The effective tax rate for the full year 2023 is expected to be in the range of 18-20%.

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FINANCIAL CONDITION

The table below presents the major categories of the Company's balance sheet as of the dates indicated:

(dollars in thousands)	September 30, 2023		December 31, 2022		$ Change		% Change
ASSETS
Cash and cash equivalents	$	74,788	$	86,435	$	(11,647)	(13.5)	%
Loans held for sale	2,528		612		1,916		313.1
Debt securities available for sale at fair value	872,770		1,153,547		(280,777)		(24.3)
Held to maturity securities at amortized cost	1,085,751		1,129,421		(43,670)		(3.9)
Loans held for investment, net of unearned income	4,065,969		3,840,524		225,445		5.9
Allowance for credit losses	(51,600)		(49,200)		(2,400)		4.9
Total loans held for investment, net	4,014,369		3,791,324		223,045		5.9
Other assets	417,612		416,537		1,075		0.3
Total assets	$	6,467,818	$	6,577,876	$	(110,058)	(1.7)	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Total deposits	$	5,363,324	$	5,468,942	$	(105,618)	(1.9)	%
Total borrowings	498,482		531,083		(32,601)		(6.1)
Other liabilities	100,601		85,058		15,543		18.3
Total shareholders' equity	505,411		492,793		12,618		2.6
Total liabilities and shareholders' equity	$	6,467,818	$	6,577,876	$	(110,058)	(1.7)	%

Debt Securities

The composition of debt securities available for sale and held to maturity as of the dates indicated was as follows:

	September 30, 2023				December 31, 2022
(dollars in thousands)	Balance		% of Total		Balance		% of Total
Available for Sale
U.S. Government agencies and corporations	$	—	—	%	$	7,345	0.6	%
States and political subdivisions	162,468		18.6		285,356		24.7
Mortgage-backed securities	5,327		0.6		5,944		0.5
Collateralized loan obligations	52,453		6.0		—		—
Collateralized mortgage obligations	131,923		15.1		147,193		12.8
Corporate debt securities	520,599		59.7		707,709		61.4
Fair value of debt securities available for sale	$	872,770	100.0	%	$	1,153,547	100.0	%
Held to Maturity
States and political subdivisions	$	532,885	49.1		$	538,746	47.7	%
Mortgage-backed securities	76,310		7.0		81,032		7.2	%
Collateralized mortgage obligations	476,556		43.9		509,643		45.1	%
Amortized cost of debt securities held to maturity	$	1,085,751	100.0	%	$	1,129,421	100.0	%

As of September 30, 2023, there was $67 thousand of gross unrealized gains and $108.8 million of gross unrealized losses in our debt securities available for sale portfolio for a net unrealized loss of $108.8 million. As of September 30, 2023 there were no gross unrealized gains and $237.4 million of gross unrealized losses in our held to maturity debt securities.

During the first quarter of 2023, the Company undertook balance sheet repositioning related to its debt securities portfolio. Specifically, the Company executed the sale of $231 million in book value of its AFS debt securities, with a pre-tax loss of $13.2 million and $220 million of proceeds that were used to pay off short-term borrowings and reinvest in higher yielding, floating rate securities.

See Note 3. Debt Securities to our consolidated financial statements for additional information related to debt securities.

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Loans

The composition of our loan portfolio by type of loan was as follows:

	September 30, 2023				December 31, 2022
(dollars in thousands)	Balance		% of Total		Balance		% of Total
Agricultural	$	111,950	2.8	%	$	115,320	3.0	%
Commercial and industrial	1,078,773		26.5		1,055,162		27.5
Commercial real estate	2,176,017		53.5		1,980,018		51.6
Residential real estate	630,046		15.5		614,428		15.9
Consumer	69,183		1.7		75,596		2.0
Loans held for investment, net of unearned income	$	4,065,969	100.0	%	$	3,840,524	100.0	%
Loans held for sale	$	2,528			$	612

Loans held for investment, net of unearned income at September 30, 2023, increased $225.4 million, or 5.9%, from December 31, 2022 to $4.07 billion, driven primarily by new loan production, draws on construction loans, and higher line of credit usage during 2023. See Note 4. Loans Receivable and the Allowance for Credit Losses to our consolidated financial statements for additional information related to our loan portfolio. Our loan to deposit ratio increased to 75.81% as of September 30, 2023 as compared to 70.22% as of December 31, 2022.

Commitments under standby letters of credit, unused lines of credit and other conditionally approved credit lines totaled approximately $1.25 billion and $1.21 billion as of September 30, 2023 and December 31, 2022, respectively.

Nonperforming Assets

The following table sets forth information concerning nonperforming loans by class of receivable and our nonperforming assets at September 30, 2023 and December 31, 2022:

(in thousands)	September 30, 2023			December 31, 2022
Nonaccrual loans held for investment	$	28,887		$	15,256
Accruing loans contractually past due 90 days or more	100			565
Total nonperforming loans	28,987			15,821
Foreclosed assets, net	—			103
Total nonperforming assets	28,987			15,924
Nonaccrual loans ratio (1)	0.71		%	0.40		%
Nonperforming loans ratio (2)	0.71		%	0.41		%
Nonperforming assets ratio (3)	0.45		%	0.24		%
(1) Nonaccrual loans ratio is calculated as nonaccrual loans divided by loans held for investment, net of unearned income, at the end of the period.
(2) Nonperforming loans ratio is calculated as total nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period.
(3) Nonperforming assets ratio is calculated as total nonperforming assets divided by total assets at the end of the period.

Compared to December 31, 2022, nonperforming loans and asset ratios increased 30 basis points and 21 basis points, respectively, primarily due to the downgrade of a single commercial relationship.

Loan Review and Classification Process for Agricultural, Commercial and Industrial, and Commercial Real Estate Loans:

The Bank maintains a loan review and classification process which involves multiple officers of the Bank and is designed to assess the general quality of credit underwriting and to promote early identification of potential problem loans. All commercial and agricultural loan officers are charged with the responsibility of risk rating all loans in their portfolios and updating the ratings, positively or negatively, on an ongoing basis as conditions warrant. Risk ratings are selected from an 8-point scale with ratings as follows: ratings 1- 4 Satisfactory (pass), rating 5 Watch (potential weakness), rating 6 Substandard (well-defined weakness), rating 7 Doubtful, and rating 8 Loss.

When a loan officer originates a new loan, based upon proper loan authorization, they document the credit file with an offering sheet summary, supplemental underwriting analysis, relevant financial information and collateral evaluations. Segregation of owner-occupied and non-owner occupied residential real estate loans is made at the time of origination. This information is used in the determination of the initial loan risk rating. The Bank’s loan review department undertakes independent credit reviews of relationships based on either criteria established by loan policy, risk-focused sampling, or random sampling. Credit relationships with larger exposure may pose incrementally higher risks. As a result, the Bank's loan review department is required to review all credit relationships with total exposure of $5.0 million or more at least annually. In addition, the individual loan reviews consider such items as: loan type; nature, type and estimated value of collateral; borrower and/or

47

guarantor estimated financial strength; most recently available financial information; related loans and total borrower exposure; and current and anticipated performance of the loan. The results of such reviews are presented to both executive management and the audit committee of the Company's board of directors.

Through the review of delinquency reports, updated financial statements or other relevant information, the lending officer and/or loan review personnel may determine that a loan relationship has weakened to the point that a Watch (risk rating 5) or Classified (risk ratings 6 through 8) status is warranted. At least quarterly, the loan strategy committee will meet to discuss loan relationships with total exposure of $1.0 million or above that are Watch rated credits, loan relationships with total exposure of $500 thousand and above that are Substandard or worse rated credits, as well as loan relationships with total exposure of $250 thousand and above that are on non-accrual. Loan relationships outside these designated thresholds are reviewed upon request. The lending officer is charged with preparing a loan strategy summary worksheet that outlines the background of the credit problem, current repayment status of the loans, current collateral evaluation and a workout plan of action. This plan may include goals to improve the credit rating, assist the borrower in moving the loans to another institution and/or collateral liquidation. All such reports are presented to the loan strategy committee. The minutes of the loan strategy committee meetings are provided to the board of directors of the Bank.

Depending upon the individual facts and circumstances and the result of the classified/watch review process, loan officers and/or loan review personnel may categorize a loan relationship as requiring an individual analysis. Once that determination has occurred, the credit analyst will complete an individually analyzed worksheet that contains an evaluation of the collateral (for collateral-dependent loans) based upon the estimated collateral value, adjusting for current market conditions and other local factors that may affect collateral value. Loan review personnel may also complete an independent individual analysis when deemed necessary. These judgmental evaluations may produce an initial specific allowance for recognition in the Company’s allowance for credit losses calculation. An analysis for the underlying collateral value of each individually analyzed loan relationship is completed in the last month of the quarter. The individually analyzed worksheets are reviewed by the Credit Administration department prior to quarter-end. The board of directors of the Bank on a quarterly basis reviews the classified/watch reports including changes in credit grades of 5 or higher as well as all individually analyzed loans, the related allowances and foreclosed assets, net.

The review process also provides for the upgrade of loans that show improvement since the last review. All requests for an upgrade of a credit are approved by the proper authority based upon the aggregate credit exposure before the rating can be changed.

Loan Modifications for Borrowers Experiencing Financial Difficulty

Infrequently, the Company makes modification to certain loans in order to alleviate temporary difficulties in the borrower's financial condition and/or constraints on the borrower's ability to repay a loan, and to minimize potential losses to the Company. GAAP requires that certain types of modifications be reported, including:

•Principal forgiveness.

•Interest rate reduction.

•An other than-insignificant payment delay.

•Term extension.

During the three and nine months ended September 30, 2023, the amortized cost of the loans that were modified to borrowers in financial distress was $3.4 million and $7.1 million, respectively, which represented 0.09% and 0.18% of total loans held for investment, net of unearned income for each respective period.

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Allowance for Credit Losses

The following table sets forth the allowance for credit losses by loan portfolio segments compared to the percentage of loans to total loans by loan portfolio segment for the periods indicated:

	September 30, 2023					December 31, 2022
(dollars in thousands)	Allowance for Credit Losses			% of Loans in Each Segment to Total Loans		Allowance for Credit Losses			% of Loans in Each Segment to Total Loans
Agricultural	$	537		2.8	%	$	923		3.0	%
Commercial and industrial	22,063			26.5	%	22,855			27.5	%
Commercial real estate	23,787			53.5	%	20,123			51.6	%
Residential real estate	4,643			15.5	%	4,678			15.9	%
Consumer	570			1.7	%	621			2.0	%
Total	$	51,600		100.0	%	$	49,200		100.0	%
Allowance for credit losses ratio(1)	1.27		%			1.28		%
Allowance for credit losses to nonaccrual loans ratio(2)	178.63		%			322.50		%
(1) Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income at the end of the period.
(2) Allowance for credit losses to nonaccrual loans ratio is calculated as allowance for credit losses divided by nonaccrual loans at the end of the period.

The following tables set forth the net (charge-offs) recoveries by loan portfolio segments for the periods indicated:

	For the Three Months Ended September 30, 2023 and 2022
(in thousands)	Agricultural			Commercial and Industrial			Commercial Real Estate			Residential Real Estate			Consumer			Total
For the Three Months Ended September 30, 2023
Charge-offs	$	(25)		$	(511)		$	—		$	(21)		$	(178)		$	(735)
Recoveries	126			79			4			3			72			284
Net (charge-offs) recoveries	$	101		$	(432)		$	4		$	(18)		$	(106)		$	(451)
Net (charge-off) recovery ratio(1)	0.01		%	(0.04)		%	—		%	—		%	(0.01)		%	(0.04)		%
For the Three Months Ended September 30, 2022
Charge-offs	$	(248)		$	(280)		$	(135)		$	(52)		$	(255)		$	(970)
Recoveries	1			295			6			48			32			382
Net (charge-offs) recoveries	$	(247)		$	15		$	(129)		$	(4)		$	(223)		$	(588)
Net (charge-off) recovery ratio(1)	(0.03)		%	—		%	(0.01)		%	—		%	(0.02)		%	(0.06)		%
	For the Nine Months Ended September 30, 2023 and 2022
(in thousands)	Agricultural			Commercial and Industrial			Commercial Real Estate			Residential Real Estate			Consumer			Total
For the Nine Months Ended September 30, 2023
Charge-offs	$	(26)		$	(1,020)		$	(830)		$	(54)		$	(451)		$	(2,381)
Recoveries	153			349			15			23			160			700
Net (charge-offs) recoveries	$	127		$	(671)		$	(815)		$	(31)		$	(291)		$	(1,681)
Net (charge-off) recovery ratio(1)	—		%	(0.02)		%	(0.03)		%	—		%	(0.01)		%	(0.06)		%
For the Nine Months Ended September 30, 2022
Charge-offs	$	(249)		$	(843)		$	(2,319)		$	(90)		$	(540)		$	(4,041)
Recoveries	9			613			154			68			106			950
Net (charge-offs) recoveries	$	(240)		$	(230)		$	(2,165)		$	(22)		$	(434)		$	(3,091)
Net (charge-off) recovery ratio(1)	(0.01)		%	(0.01)		%	(0.08)		%	—		%	(0.02)		%	(0.12)		%
(1) Net (charge-off) recovery ratio is calculated as the annualized net (charge-offs) recoveries divided by average loans held for investment, net of unearned income and average loans held for sale, during the period.

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Actual Results: Our ACL as of September 30, 2023 was $51.6 million, which was 1.27% of loans held for investment, net of unearned income as of that date. This compares with an ACL of $49.2 million as of December 31, 2022, which was 1.28% of loans held for investment, net of unearned income. The increase in the ACL primarily reflected an additional reserve taken to support loan growth and related to individually evaluated loans. The liability for off-balance sheet credit exposures totaled $4.8 million as of September 30, 2023 and December 31, 2022, and is included in 'Other liabilities' on the balance sheet.

The Company recorded a credit loss expense related to loans of $4.1 million for the nine months ended September 30, 2023 as compared to credit loss expense related to loans of $3.1 million for the nine months ended September 30, 2022. Gross charge-offs for the first nine months of 2023 totaled $2.4 million, while there were $0.7 million in gross recoveries of previously charged-off loans. The ratio of annualized net charge-offs to average loans for the first nine months of 2023 was 0.06% compared to 0.12% for the nine months ended September 30, 2022.

Economic Forecast: At September 30, 2023, the economic forecast used by the Company showed the following: (1) Midwest unemployment – increases over the next four forecasted quarters; (2) Year-to-year change in national retail sales - increases over the next four forecasted quarters; (3) Year-to-year change in CRE Index - decreases in the next four forecasted quarters; (4) Year-to-year change in U.S. GDP - increases over the next four forecasted quarters; (5) Year-to-year change in National Home Price Index – increases over the next two forecasted quarters, with declines in the third and fourth forecasted quarters; and (6) Rental Vacancy - increases over the next four forecasted quarters. In addition, management utilized qualitative factors to adjust the calculated ACL as appropriate. Qualitative factors are based on management’s judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions.

Loan Policy: We review all nonaccrual loans greater than $250,000 individually on a quarterly basis to measure any amount to be recognized in the Company's allowance for credit losses by analyzing the borrower's ability to repay amounts owed, collateral deficiencies, and other relevant factors. In addition, PCD loans greater than $250,000 are evaluated individually to determine the required ACL. Loans modified to borrowers experiencing financial difficulty performing in accordance with their modified contractual terms for a reasonable period of time may be included in the Company’s existing pools based on the underlying risk characteristics of the loan to measure the ACL. Upon the Company's determination that a modified loan (or a portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. We review loans 90 days or more past due that are still accruing interest no less than quarterly to determine if the asset is both well secured and in the process of collection. If not, such loans are placed on non-accrual status.

Based on the inherent risk in the loan portfolio, management believed that as of September 30, 2023, the ACL was adequate; however, there is no assurance losses will not exceed the ACL. In addition, growth in the loan portfolio or general economic deterioration may require the recognition of additional credit loss expense in future periods. See Note 4. Loans Receivable and the Allowance for Credit Losses to our unaudited consolidated financial statements for additional information related to the allowance for credit losses.

Deposits

The composition of deposits was as follows:

	As of September 30, 2023				As of December 31, 2022
(in thousands)	Balance		% of Total		Balance		% of Total
Noninterest bearing deposits	$	924,213	17.2	%	$	1,053,450	19.3	%
Interest checking deposits	1,334,481		24.9		1,624,278		29.8
Money market deposits	1,127,287		21.0		937,340		17.1
Savings deposits	619,805		11.6		664,169		12.1
Time deposits of $250 and under	703,646		13.1		559,466		10.2
Total core deposits	4,709,432		87.8		4,838,703		88.5
Brokered deposits	220,063		4.1		126,767		2.4
Time deposits over $250	433,829		8.1		503,472		9.1
Total non-core deposits	653,892		12.2		630,239		11.5
Total deposits	$	5,363,324	100.0	%	$	5,468,942	100.0	%

Deposits decreased $105.6 million from December 31, 2022, or 1.9%. Brokered deposits as of September 30, 2023 totaled $220.1 million, compared with $126.8 million as of December 31, 2022. Approximately 87.8% of our total deposits were considered “core” deposits as of September 30, 2023, compared to 88.5% at December 31, 2022. We consider core deposits to be the total of all deposits other than time deposits greater than $250k and non-reciprocal brokered deposits. Deposit inflows and outflows are influenced by prevailing market interest rates, competition, local and national economic conditions, and

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fluctuations in our business customers own liquidity needs and may also be influenced by recent developments in the financial services industry. See Note 8. Deposits to our consolidated financial statements for additional information related to our deposits.

Short-Term Borrowings and Long-Term Debt

The following table sets forth the composition of short-term borrowings and long-term debt as of the dates presented:

(dollars in thousands)	September 30, 2023		December 31, 2022
Securities sold under agreements to repurchase	$	9,256	$	156,373
Federal Home Loan Bank advances	139,700		235,500
Federal Reserve Bank borrowings	225,000		—
Total short-term borrowings	$	373,956	$	391,873
Junior subordinated notes issued to capital trusts	42,249		42,116
Subordinated debentures	64,105		64,006
Finance lease payable	652		787
Federal Home Loan Bank borrowings	6,270		17,301
Other long-term debt	11,250		15,000
Total long-term debt	$	124,526	$	139,210

See Note 9. Short-Term Borrowings and Note 10. Long-Term Debt to our unaudited consolidated financial statements for additional information related to short-term borrowings and long-term debt.

Capital Resources

Shareholders' Equity and Capital Adequacy

The following table summarizes certain equity capital ratios and book value per share amounts of the Company at the dates presented:

	September 30, 2023			December 31, 2022
Common equity ratio	7.81		%	7.49		%
Tangible common equity ratio(1)	6.54		%	6.17		%
Total risk-based capital ratio	12.45		%	12.07		%
Tier 1 risk-based capital ratio	10.31		%	10.05		%
Common equity tier 1 risk-based capital ratio	9.52		%	9.28		%
Tier 1 leverage ratio	8.58		%	8.35		%
Book value per share	$	32.21		$	31.54
Tangible book value per share(1)	$	26.60		$	25.60
(1)A non-GAAP financial measure - see the “Non-GAAP Presentations” section for a reconciliation to the most comparable GAAP equivalent.

Shareholders' Equity: Total shareholders’ equity was $505.4 million as of September 30, 2023, compared to $492.8 million as of December 31, 2022, an increase of $12.6 million, or 2.6%, primarily due to net income and a decrease in the unrealized loss on available for sale debt securities, which decreased the negative balance included in AOCI.

Capital Adequacy: Risk-based capital guidelines require the classification of assets and some off-balance-sheet items in terms of credit-risk exposure and the measuring of capital as a percentage of the risk-adjusted asset totals. Management believed that, as of September 30, 2023, the Company and the Bank met all capital adequacy requirements to which we were subject. As of that date, the Bank was “well capitalized” under regulatory prompt corrective action provisions. See Note 12. Regulatory Capital Requirements and Restrictions on Subsidiary Cash to our unaudited consolidated financial statements for additional information related to our capital.

Stock Compensation

Restricted stock units were granted to certain officers of the Company on February 15, 2023, in the aggregate amount of 80,745. In the second quarter, restricted stock units were granted to directors of the Company and Bank on May 15, 2023, in the aggregate amount of 20,148, while during the third quarter, restricted stock units were granted to certain officers of the Company and the Bank on August 15, 2023, in the aggregate amount of 894. Additionally, during the first nine months of 2023, 88,039 shares of common stock were issued in connection with the vesting of previously awarded grants of restricted stock

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units, of which 20,278 shares were surrendered by grantees to satisfy tax requirements, and 881 unvested restricted stock units were forfeited.

Liquidity

Liquidity management involves meeting the cash flow requirements of depositors and borrowers. We conduct liquidity management on both a daily and long-term basis, and adjust our investments in liquid assets based on expected loan demand, projected loan maturities and payments, expected deposit flows, yields available on interest-bearing deposits, and the objectives of our asset/liability management program. Excess liquidity is invested generally in short-term U.S. government and agency securities, short- and medium-term state and political subdivision securities, and other investment securities. Our most liquid assets are cash and due from banks, interest-bearing bank deposits, and federal funds sold. The balances of these assets are dependent on our operating, investing, and financing activities during any given period.

Cash and cash equivalents are summarized in the table below.

(dollars in thousands)	As of September 30, 2023		As of December 31, 2022
Cash and due from banks	$	71,015	$	83,990
Interest-bearing deposits	3,773		2,445
Total	$	74,788	$	86,435

Generally, our principal sources of funds are deposits, advances from the FHLB, principal repayments on loans, proceeds from the sale of loans, proceeds from the maturity and sale of investment securities, our federal funds lines, and funds provided by operations. While scheduled loan amortization and maturing interest-bearing deposits are relatively predictable sources of funds, deposit flows and loan prepayments are greatly influenced by economic conditions, the general level of interest rates, and competition. We utilized particular sources of funds based on comparative costs and availability. The Bank maintains unsecured lines of credit with several correspondent banks and secured lines with the Federal Reserve Bank of Chicago and the FHLB that would allow us to borrow funds on a short-term basis, if necessary. We also hold debt securities classified as available for sale that could be sold to meet liquidity needs if necessary.

Net cash provided by operations was another major source of liquidity. The net cash provided by operating activities was $55.8 million for the nine months ended September 30, 2023 and $72.3 million for the nine months ended September 30, 2022.

Inflation

The effects of price changes and inflation can vary substantially for most financial institutions. While management believes that inflation affects the growth of total assets, it is difficult to assess its overall impact on the Company. The price of one or more of the components of the Consumer Price Index may fluctuate considerably and thereby influence the overall Consumer Price Index without having a corresponding effect on interest rates or upon the cost of those goods and services normally purchased by us. Inflation and related increases in market rates by the Federal Reserve generally decrease the market value of investments and loans held and may adversely affect liquidity, earnings and shareholders' equity. Ongoing higher inflation levels and higher interest rates could have a negative impact on both our consumer and commercial borrowers. We anticipate our noninterest income may be adversely affected in future periods as a result of increasing interest rates and inflationary pressure, which has begun to and will continue to adversely affect mortgage originations and mortgage banking revenue. Additionally, the economic impact of the recent rise in inflation and rising interest rates could place increased demand on our liquidity if we experience significant credit deterioration and as we meet borrowers' needs. There is also a risk that interest rate increases to fight inflation could lead to a recession.

Off-Balance-Sheet Arrangements

During the normal course of business, we are a party to financial instruments with off-balance-sheet risk in order to meet the financing needs of our customers. These financial instruments include commitments to extend credit, commitments to sell loans, and standby letters of credit. We follow the same credit policy (including requiring collateral, if deemed appropriate) to make such commitments as is followed for those loans that are recorded in our financial statements.

Our exposure to credit losses in the event of nonperformance is represented by the contractual amount of the commitments. Management does not expect any significant losses as a result of these commitments, and also expects to have sufficient liquidity available to cover these off-balance-sheet instruments. Off-balance-sheet transactions are more fully discussed in Note 13. Commitments and Contingencies to our unaudited consolidated financial statements.

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Contractual Obligations

There have been no material changes to the Company's contractual obligations existing at December 31, 2022, as disclosed in the Annual Report on Form 10-K, filed with the SEC on March 13, 2023.

Non-GAAP Financial Measures

Certain ratios and amounts not in conformity with GAAP are provided to evaluate and measure the Company’s operating performance and financial condition, including return on average tangible equity, tangible common equity, tangible book value per share, tangible common equity ratio, efficiency ratio, net interest margin (tax equivalent), and core net interest margin. Management believes these ratios and amounts provide investors with useful information regarding the Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance.

The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent:

	Three Months Ended						Nine Months Ended
Return on Average Tangible Equity	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
(Dollars in thousands)
Net income	$	9,138		$	18,317		$	18,129		$	44,833
Intangible amortization, net of tax (1)	1,095			1,342			3,605			3,224
Tangible net income	$	10,233		$	19,659		$	21,734		$	48,057
Average shareholders' equity	$	508,066		$	499,263		$	503,902		$	507,764
Average intangible assets, net	(88,699)			(95,499)			(90,308)			(87,318)
Average tangible equity	$	419,367		$	403,764		$	413,594		$	420,446
Return on average equity	7.14		%	14.56		%	4.81		%	11.81		%
Return on average tangible equity (2)	9.68		%	19.32		%	7.03		%	15.28		%
(1) Computed assuming a combined marginal income tax rate of 25%.
(2) Annualized tangible net income divided by average tangible equity.

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Tangible Common Equity/Tangible Book Value per Share / Tangible Common Equity Ratio	September 30, 2023			December 31, 2022
(Dollars in thousands, except per share data)
Total shareholders’ equity	$	505,411		$	492,793
Intangible assets, net	(87,987)			(92,792)
Tangible common equity	$	417,424		$	400,001
Total assets	$	6,467,818		$	6,577,876
Intangible assets, net	(87,987)			(92,792)
Tangible assets	$	6,379,831		$	6,485,084
Book value per share	$	32.21		$	31.54
Tangible book value per share (1)	$	26.60		$	25.60
Shares outstanding	15,691,738			15,623,977
Equity to assets ratio	7.81		%	7.49		%
Tangible common equity ratio (2)	6.54		%	6.17		%
(1) Tangible common equity divided by shares outstanding.
(2) Tangible common equity divided by tangible assets.

	Three Months Ended						Nine Months Ended
Efficiency Ratio	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
(dollars in thousands)
Total noninterest expense	$	31,544		$	34,623		$	99,782		$	98,348
Amortization of intangibles	(1,460)			(1,789)			(4,806)			(4,299)
Merger-related expenses	(11)			(763)			(147)			(1,792)
Noninterest expense used for efficiency ratio	$	30,073		$	32,071		$	94,829		$	92,257
Net interest income, tax equivalent(1)	$	35,742		$	47,002		$	115,162		$	126,395
Noninterest income	9,861			12,588			14,561			36,579
Investment security losses (gains), net	(79)			163			13,093			(272)
Net revenues used for efficiency ratio	$	45,524		$	59,753		$	142,816		$	162,702
Efficiency ratio(2)	66.06		%	53.67		%	66.40		%	56.70		%
(1) The federal statutory tax rate utilized was 21%.
(2) Noninterest expense adjusted for amortization of intangibles and merger-related expenses divided by the sum of tax equivalent net interest income, noninterest income and net investment securities gains.

	Three Months Ended						Nine Months Ended
Net Interest Margin, Tax Equivalent/Core Net Interest Margin	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
(dollars in thousands)
Net interest income	$	34,575		$	45,733		$	111,613		$	122,794
Tax equivalent adjustments:
Loans (1)	735			673			2,164			1,782
Securities (1)	432			596			1,385			1,819
Net interest income, tax equivalent	$	35,742		$	47,002		$	115,162		$	126,395
Loan purchase discount accretion	(791)			(2,015)			(2,964)			(3,275)
Core net interest income	$	34,951		$	44,987		$	112,198		$	123,120
Net interest margin	2.27		%	3.00		%	2.46		%	2.84		%
Net interest margin, tax equivalent (2)	2.35		%	3.08		%	2.54		%	2.92		%
Core net interest margin (3)	2.30		%	2.95		%	2.47		%	2.85		%
Average interest earning assets	$	6,032,636		$	6,050,864		$	6,063,026		$	5,783,021
(1) The federal statutory tax rate utilized was 21%.
(2) Annualized tax equivalent net interest income divided by average interest earning assets.
(3) Annualized core net interest income divided by average interest earning assets.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk.

In general, market risk is the risk of change in asset values due to movements in underlying market rates and prices. Interest rate risk is the risk to earnings and capital arising from movements in interest rates. Interest rate risk is the most significant market risk affecting us as other types of market risk, such as foreign currency exchange rate risk and commodity price risk, do not arise in the normal course of our business activities.

In addition to interest rate risk, economic conditions in recent years have made liquidity risk (namely, funding liquidity risk) a more prevalent concern among financial institutions. In general, liquidity risk is the risk of being unable to fund an entity’s obligations to creditors (including, in the case of banks, obligations to depositors) as such obligations become due and/or fund its acquisition of assets.

Liquidity Risk

Liquidity refers to our ability to fund operations, to meet depositor withdrawals, to provide for our customers’ credit needs, and to meet maturing obligations and existing commitments. Our liquidity principally depends on cash flows from operating activities, investment in and maturity of assets, changes in balances of deposits and borrowings, and our ability to borrow funds.

Net cash inflows from operating activities were $55.8 million in the first nine months of 2023, compared with $72.3 million in the first nine months of 2022. Net cash inflows from investing activities were $83.1 million in the first nine months of 2023, compared to net cash outflows of $202.5 million in the comparable nine-month period of 2022. Net cash outflows from financing activities in the first nine months of 2023 were $150.5 million, compared with net cash inflows of $4.8 million for the same period of 2022.

To manage liquidity risk, the Bank has several sources of liquidity in place to maximize funding availability and increase the diversification of funding sources. The criteria for evaluating the use of these sources include volume concentration (percentage of liabilities), cost, volatility, and the fit with the current asset/liability management plan. These acceptable sources of liquidity include:

•Federal Funds Lines

•Federal Reserve Bank Discount Window/Bank Term Funding Program

•Federal Home Loan Bank Advances

•Brokered Deposits

•Brokered Repurchase Agreements

Federal Funds Lines - Federal funds positions provide a source of short-term liquidity funding for the Bank. Unsecured federal funds purchased lines are viewed as a volatile liability and are not used as a long-term funding solution, especially when used to fund long-term assets. The current federal funds purchased limit is 10% of total assets, or the amount of established federal funds lines, whichever is smaller. As of September 30, 2023, the Bank maintains several unsecured federal funds lines totaling $155.0 million, which lines are tested annually to ensure availability.

Federal Reserve Bank Discount Window and Bank Term Funding Program - The Federal Reserve Bank Discount Window and the Bank Term Funding Program are additional sources of liquidity, particularly during periods of economic uncertainty or stress. The Bank has a borrowing capacity with the Federal Reserve Bank of Chicago limited by the amount of municipal securities pledged against the line. As of September 30, 2023, the Bank had municipal securities with an approximate market value of $880.5 million pledged for liquidity purposes and had additional borrowing capacity of $739.7 million. There were no outstanding borrowings through the FRB Discount Window at September 30, 2023. There were $225.0 million of Bank Term Funding Program borrowings outstanding at September 30, 2023.

Federal Home Loan Bank Advances - FHLB advances provide both a source of liquidity and long-term funding for the Bank. Advances from the FHLBDM are collateralized primarily by one- to four-family residential, commercial and agricultural real estate first mortgages equal to various percentages of the total outstanding notes. The current FHLB borrowing limit is 45% of total assets. As of September 30, 2023, the Bank had $139.7 million of short-term FHLB advances and $6.3 million in long-term FHLB borrowings and additional borrowing capacity of $673.3 million.

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Brokered Deposits and Reciprocal Deposits - The Bank has brokered time deposit and non-maturity deposit relationships available to diversify its funding sources. Brokered deposits offer several benefits relative to other funding sources, such as: maturity structures which cannot be duplicated in the current retail market, deposit gathering which does not cannibalize the existing deposit base, the unsecured nature of these liabilities, and the ability to quickly generate funds. The Bank’s internal policy limits the use of brokered deposits as a funding source to no more than 10% of total assets. Board approval is required to exceed this limit. The Bank must maintain a “well capitalized” rating to access brokered deposits without FDIC waiver. An “adequately capitalized” rating requires an FDIC waiver to access brokered deposits and an “undercapitalized” rating prohibits the Bank from using brokered deposits. The Company had brokered deposits of $220.1 million as of September 30, 2023 and $126.8 million as of December 31, 2022.

Under a final rule that was issued by the FDIC in December 2018, financial institutions that are considered "well capitalized" qualify for the exemption of certain reciprocal deposits from being considered brokered deposits. Such exemption is limited to the lesser of 20 percent of total liabilities or $5 billion, with some exceptions for financial institutions that do not meet such criteria. At September 30, 2023, the Company had $10.9 million of reciprocal time deposits, $149.6 million of reciprocal interest bearing non-maturity deposits, and $70.1 million non-interest bearing non-maturity deposits that qualified for the brokered deposit exemption. These reciprocal deposits are part of the IntraFi Network Deposits program, which is used by financial institutions to spread deposits that exceed the FDIC insurance coverage limits out to numerous institutions in order to provide insurance coverage for all participating deposits.

Brokered Repurchase Agreements - Brokered repurchase agreements may be established with approved brokerage firms and banks. Repurchase agreements create rollover risk (the risk that a broker will discontinue the relationship due to market factors) and are not used as a long-term funding solution, especially when used to fund long-term assets. Collateral requirements and availability are evaluated and monitored. The current policy limit for brokered repurchase agreements is 10% of total assets. There were no outstanding brokered repurchase agreements at September 30, 2023.

Interest Rate Risk

Interest rate risk is defined as the exposure of net interest income and fair value of financial instruments (interest-earning assets, deposits and borrowings) to movements in interest rates. The Company’s results of operations depend to a large degree on its net interest income and its ability to manage interest rate risk. The Company considers interest rate risk to be a significant market risk. The major sources of the Company’s interest rate risk are timing differences in the maturity and re-pricing characteristics of assets and liabilities, changes in the shape of the yield curve, changes in customer behavior and changes in relationships between rate indices (basis risk). Management measures these risks and their impact in various ways, including through the use of income simulation and valuation analyses. Multiple interest rate scenarios are used in this analysis which include changes in interest rates, spread narrowing and widening, yield curve twists and changes in assumptions about customer behavior in various interest rate scenarios. A mismatch between maturities, interest rate sensitivities and prepayment characteristics of assets and liabilities results in interest-rate risk. Like most financial institutions, we have material interest-rate risk exposure to changes in both short-term and long-term interest rates, as well as variable interest rate indices (e.g., the prime rate or SOFR).

The Bank’s asset and liability committee meets regularly and is responsible for reviewing its interest rate sensitivity position and establishing policies to monitor and limit exposure to interest rate risk. Our asset and liability committee seeks to manage interest rate risk under a variety of rate environments by structuring our balance sheet and off-balance-sheet positions in such a way that changes in interest rates do not have a large negative impact. The risk is monitored and managed within approved policy limits.

We use a third-party service to model and measure our exposure to potential interest rate changes. For various assumed hypothetical changes in market interest rates, numerous other assumptions are made, such as prepayment speeds on loans and securities backed by mortgages, the slope of the Treasury yield-curve, the rates and volumes of our deposits, and the rates and volumes of our loans. There are two primary tools used to evaluate interest rate risk: net interest income simulation and economic value of equity ("EVE"). In addition, interest rate gap is reviewed to monitor asset and liability repricing over various time periods.

Net Interest Income Simulation - Management utilizes net interest income simulation models to estimate the near-term effects of changing interest rates on its net interest income. Net interest income simulation involves projecting net interest income under a variety of scenarios, which include varying the level of interest rates and shifts in the shape of the yield curve. Management exercises its best judgment in making assumptions regarding events that management can influence, such as non-contractual deposit re-pricings, and events outside management’s control, such as customer behavior on loan and deposit activity and the effect that competition has on both loan and deposit pricing. These assumptions are subjective and, as a result,

56

net interest income simulation results will differ from actual results due to the timing, magnitude and frequency of interest rate changes, changes in market conditions, customer behavior and management strategies, among other factors. We perform various sensitivity analyses on assumptions of deposit attrition and deposit re-pricing.

The following table presents the anticipated effect on net interest income over a twelve month period if short- and long-term interest rates were to sustain an immediate decrease of 100 basis points or 200 basis points, or an immediate increase of 100 basis points or 200 basis points:

	Immediate Change in Rates
(dollars in thousands)	-200			-100			+100			+200
September 30, 2023
Dollar change	$	461		$	225		$	(361)		$	(973)
Percent change	0.3		%	0.2		%	(0.3)		%	(0.7)		%
December 31, 2022
Dollar change	$	8,398		$	5,637		$	(6,738)		$	(13,921)
Percent change	5.2		%	3.5		%	(4.2)		%	(8.7)		%

As of September 30, 2023, 29.9% of the Company’s earning asset balances will reprice or are expected to pay down in the next twelve months, and 42.1% of the Company’s deposit balances are low cost or no cost deposits.

Economic Value of Equity - Management also uses EVE to measure risk in the balance sheet that might not be taken into account in the net interest income simulation analysis. Net interest income simulation highlights exposure over a relatively short time period, while EVE analysis incorporates all cash flows over the estimated remaining life of all balance sheet positions. The valuation of the balance sheet, at a point in time, is defined as the discounted present value of asset cash flows minus the discounted present value of liability cash flows. EVE analysis addresses only the current balance sheet and does not incorporate the run-off replacement assumptions that are used in the net interest income simulation model. As with the net interest income simulation model, EVE analysis is based on key assumptions about the timing and variability of balance sheet cash flows and does not take into account any potential responses by management to anticipated changes in interest rates.

Interest Rate Gap - The interest rate gap is the difference between interest-earning assets and interest-bearing liabilities re-pricing within a given period and represents the net asset or liability sensitivity at a point in time. An interest rate gap measure could be significantly affected by external factors such as loan prepayments, early withdrawals of deposits, changes in the correlation of various interest-bearing instruments, competition, or a rise or decline in interest rates.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

The Company’s management, including the Chief Executive Officer, the Chief Financial Officer, and the Chief Accounting Officer, evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer, the Chief Financial Officer, and the Chief Accounting Officer, to allow timely decisions regarding required disclosure. Based on this evaluation, the Chief Executive Officer, the Chief Financial Officer, and the Chief Accounting Officer, have concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2023.

The effectiveness of our or any system of disclosure controls and procedures is subject to certain limitations, including the exercise of judgment in designing, implementing, and evaluating the controls and procedures, the assumptions used in identifying the likelihood of future events, and the inability to eliminate misconduct completely. As a result, there can be no assurance that our disclosure controls and procedures will prevent all errors or fraud or ensure that all material information will be made known to appropriate management in a timely fashion. By their nature, our or any system of disclosure controls and procedures can provide only reasonable assurance regarding management’s control objectives.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal controls over financial reporting (as defined in Rule 13a-15(f) and Rule 15d-15(f) under the Exchange Act) that occurred during the quarter ended September 30, 2023 that have materially affected or are reasonably likely to materially affect the Company's internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

We and our subsidiaries are from time to time parties to various legal actions arising in the normal course of business. We believe that there is no threatened or pending proceeding, other than ordinary routine litigation incidental to the Company’s business, against us or our subsidiaries or of which our property is the subject, which, if determined adversely, would have a material adverse effect on our consolidated business or financial condition.

Item 1A. Risk Factors.

There have been no material changes to the risk factors set forth under Part I, Item 1A "Risk Factors" in the Company's Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on March 13, 2023.

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities.

Repurchase of Equity Securities

The following table sets forth information about the Company’s purchases of its common stock during the third quarter of 2023:

	Total Number of Shares Purchased(1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Programs(2)	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program
July 1 - 31, 2023	—	$	—	—	$	15,000,000
August 1 - 31, 2023	2,382	22.37		—	15,000,000
September 1 - 30, 2023	—	—		—	15,000,000
Total	2,382	$	22.37	—	$	15,000,000

(1) During the three months ended September 30, 2023, no shares were repurchased by the Company under the current share repurchase program, while 2,382 shares were surrendered by employees of the Company to pay withholding taxes on vesting of restricted stock unit awards.

(2) On June 22, 2021, the Board of Directors of the Company approved a share repurchase program, allowing for the repurchase of up to $15.0 million of the Company's common stock through December 31, 2023. This repurchase program replaced the Company’s prior repurchase program, which was due to expire on December 31, 2021. Since June 23, 2021 and through April 27, 2023, the Company repurchased 403,368 shares of common stock for approximately $12.0 million, leaving $3.0 million available to be repurchased.

On April 27, 2023, the Board of Directors of the Company approved a new share repurchase program, allowing for the repurchase of up to $15.0 million of the Company's common stock through December 31, 2025. This new repurchase program replaced the Company’s prior repurchase program, adopted in June 2021, which was due to expire on December 31, 2023. Since April 28, 2023 and through September 30, 2023, the Company repurchased no shares of common stock, leaving $15.0 million available to be repurchased.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not Applicable.

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Item 5. Other Information.

During the fiscal quarter ended September 30, 2023, none of the Company’s directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule10b5-1(c) or any "non-Rule 10b5-1 trading arrangement."

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Item 6. Exhibits.

Exhibit Number	Description	Incorporated by Reference to:
3.1	Amended and Restated Articles of Incorporation of MidWestOne Financial Group, Inc. filed with the Secretary of State of the State of Iowa on March 14, 2008	Exhibit 3.3 to the Company’s Amendment No. 1 to Registration Statement on Form S-4 (File No. 333-147628) filed with the SEC on January 14, 2008
3.2	Articles of Amendment (First Amendment) to the Amended and Restated Articles of Incorporation of MidWestOne Financial Group, Inc. filed with the Secretary of State of the State of Iowa on January 23, 2009	Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on January 23, 2009
3.3	Articles of Amendment (Second Amendment) to the Amended and Restated Articles of Incorporation of MidWestOne Financial Group, Inc. filed with the Secretary of State of the State of Iowa on February 4, 2009 (containing the Certificate of Designations for the Company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series A)	Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on February 6, 2009
3.4	Articles of Amendment (Third Amendment) to the Amended and Restated Articles of Incorporation of MidWestOne Financial Group, Inc., filed with the Secretary of State of the State of Iowa on April 21, 2017	Exhibit 3.1 to the Company’s Form 10-Q for the quarter ended March 31, 2017, filed with the SEC on May 4, 2017
3.5	Third Amended and Restated Bylaws, as Amended of MidWestOne Financial Group, Inc. as of October 18, 2022	Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on October 19, 2022
4.1	Form of MidWestOne Financial Group, Inc. 2023 Equity Incentive Plan Restricted Stock Unit Award Agreement	Exhibit 4.7 to the Company’s Form S-8 filed with the SEC on May 5, 2023
4.2	Form of MidWestOne Financial Group, Inc. 2023 Equity Incentive Plan Performance-Based Restricted Stock Unit Award Agreement	Exhibit 4.8 to the Company’s Form S-8 filed with the SEC on May 5, 2023
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a)	Filed herewith
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a)	Filed herewith
31.3	Certification of Principal Accounting Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a)	Filed herewith
32.1	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed herewith
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed herewith
32.3	Certification of Principal Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed herewith
101	The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Shareholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags.	Filed herewith
101.SCH	Inline XBRL Taxonomy Extension Schema Document	Filed herewith
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document	Filed herewith
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document	Filed herewith
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document	Filed herewith
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document	Filed herewith
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)	Filed herewith

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

		MIDWESTONE FINANCIAL GROUP, INC.
Dated:	November 2, 2023	By:	/s/ CHARLES N. REEVES
			Charles N. Reeves
			Chief Executive Officer
			(Principal Executive Officer)
		By:	/s/ BARRY S. RAY
			Barry S. Ray
			Chief Financial Officer
			(Principal Financial Officer)
		By:	/s/ JOHN J. RUPPEL
			John J. Ruppel
			Chief Accounting Officer
			(Principal Accounting Officer)

61

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO EXCHANGE ACT RULE 13a - 14(a) / 15d - 14(a) AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Charles N. Reeves, Chief Executive Officer of MidWestOne Financial Group, Inc., certify that:

1)	I have reviewed this Quarterly Report on Form 10-Q of MidWestOne Financial Group, Inc.;
2)	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3)	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4)	The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
		a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
		b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
		c)	evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
		d)	disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5)	The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
		a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
		b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ CHARLES N. REEVES
Charles N. Reeves
Chief Executive Officer
Date:	November 2, 2023

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO EXCHANGE ACT RULE 13a - 14(a) / 15d - 14(a) AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Barry S. Ray, Chief Financial Officer of MidWestOne Financial Group, Inc., certify that:

1)	I have reviewed this Quarterly Report on Form 10-Q of MidWestOne Financial Group, Inc.;
2)	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3)	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4)	The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
		a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
		b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
		c)	evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
		d)	disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5)	The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
		a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
		b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ BARRY S. RAY
Barry S. Ray
Chief Financial Officer
Date:	November 2, 2023

EX-31.3

Exhibit 31.3

CERTIFICATION OF PRINCIPAL ACCOUNTING OFFICER

PURSUANT TO EXCHANGE ACT RULE 13a - 14(a) / 15d - 14(a) AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John J. Ruppel, Chief Accounting Officer of MidWestOne Financial Group, Inc., certify that:

1)	I have reviewed this Quarterly Report on Form 10-Q of MidWestOne Financial Group, Inc.;
2)	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3)	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4)	The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
		a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
		b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
		c)	evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
		d)	disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5)	The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
		a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
		b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ JOHN J. RUPPEL
John J. Ruppel
Chief Accounting Officer
Date:	November 2, 2023

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of MidWestOne Financial Group, Inc. on Form 10-Q for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Charles N. Reeves, the Chief Executive Officer of MidWestOne Financial Group, Inc., certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(a)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(b)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of MidWestOne Financial Group, Inc.

/s/ CHARLES N. REEVES
Charles N. Reeves
Chief Executive Officer
Date:	November 2, 2023

This certification accompanies this Form 10-Q and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that Section.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of MidWestOne Financial Group, Inc. on Form 10-Q for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Barry S. Ray, the Chief Financial Officer of MidWestOne Financial Group, Inc., certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(a)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(b)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of MidWestOne Financial Group, Inc.

/s/ BARRY S. RAY
Barry S. Ray
Chief Financial Officer
Date:	November 2, 2023

This certification accompanies this Form 10-Q and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that Section.

EX-32.3

Exhibit 32.3

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of MidWestOne Financial Group, Inc. on Form 10-Q for the period ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John J. Ruppel, the Chief Accounting Officer of MidWestOne Financial Group, Inc., certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(a)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(b)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of MidWestOne Financial Group, Inc.

/s/ JOHN J. RUPPEL
John J. Ruppel
Chief Accounting Officer
Date:	November 2, 2023

This certification accompanies this Form 10-Q and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that Section.

XML

Cover Page - shares	9 Months Ended
	Sep. 30, 2023	Nov. 01, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-35968
Entity Registrant Name	MIDWESTONE FINANCIAL GROUP, INC.
Entity Incorporation, State or Country Code	IA
Entity Tax Identification Number	42-1206172
Entity Address, Address Line One	102 South Clinton Street
Entity Address, City or Town	Iowa City
Entity Address, State or Province	IA
Entity Address, Postal Zip Code	52240
City Area Code	319
Local Phone Number	356-5800
Title of 12(b) Security	Common stock, $1.00 par value
Trading Symbol	MOFG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		15,691,738
Entity Central Index Key	0001412665
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
ASSETS
Cash and due from banks	$ 71,015	$ 83,990
Interest earning deposits in banks	3,773	2,445
Total cash and cash equivalents	74,788	86,435
Debt securities available for sale at fair value	872,770	1,153,547
Held to maturity securities at amortized cost	1,085,751	1,129,421
Total securities	1,958,521	2,282,968
Loans held for sale	2,528	612
Gross loans held for investment	4,078,060	3,854,791
Unearned income, net	(12,091)	(14,267)
Loans held for investment, net of unearned income	4,065,969	3,840,524
Allowance for credit losses	(51,600)	(49,200)
Total loans held for investment, net	4,014,369	3,791,324
Premises and equipment, net	85,589	87,125
Goodwill	62,477	62,477
Other intangible assets, net	25,510	30,315
Foreclosed assets, net	0	103
Other assets	244,036	236,517
Total assets	6,467,818	6,577,876
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest bearing deposits	924,213	1,053,450
Interest bearing deposits	4,439,111	4,415,492
Total deposits	5,363,324	5,468,942
Short-term borrowings	373,956	391,873
Long-term debt	124,526	139,210
Other liabilities	100,601	85,058
Total liabilities	5,962,407	6,085,083
Shareholders' equity
Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding	0	0
Common stock, $1.00 par value; authorized 30,000,000 shares; issued shares of 16,581,017 and 16,581,017; outstanding shares of 15,691,738 and 15,623,977	16,581	16,581
Additional paid-in capital	301,889	302,085
Retained earnings	295,862	289,289
Treasury stock at cost, 889,279 and 957,040 shares	(24,315)	(26,115)
Accumulated other comprehensive loss	(84,606)	(89,047)
Total shareholders' equity	505,411	492,793
Total liabilities and shareholders' equity	$ 6,467,818	$ 6,577,876

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	500,000	500,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares authorized (in shares)	30,000,000	30,000,000
Common stock, shares issued (in shares)	16,581,017	16,581,017
Common stock, shares outstanding (in shares)	15,691,738	15,623,977
Treasury stock (in shares)	889,279	957,040

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Interest income
Loans, including fees	$ 51,870	$ 40,451	$ 148,086	$ 104,515
Taxable investment securities	9,526	10,635	29,704	28,334
Tax-exempt investment securities	1,802	2,326	5,751	7,076
Other	374	9	686	77
Total interest income	63,572	53,421	184,227	140,002
Interest expense
Deposits	23,128	5,035	58,564	11,118
Short-term borrowings	3,719	767	7,623	1,115
Long-term debt	2,150	1,886	6,427	4,975
Total interest expense	28,997	7,688	72,614	17,208
Net interest income	34,575	45,733	111,613	122,794
Credit loss expense	1,551	638	4,081	3,920
Net interest income after credit loss expense	33,024	45,095	107,532	118,874
Noninterest income
Investment services and trust activities	3,004	2,876	9,056	8,557
Service charges and fees	2,146	2,075	6,201	5,449
Card revenue	1,817	1,898	5,412	5,426
Loan revenue	1,462	1,722	3,791	9,538
Bank-owned life insurance	626	579	1,844	1,668
Investment securities gains (losses), net	79	(163)	(13,093)	272
Other	727	3,601	1,350	5,669
Total noninterest income	9,861	12,588	14,561	36,579
Noninterest expense
Compensation and employee benefits	18,558	20,046	58,551	57,665
Occupancy expense of premises, net	2,405	2,577	7,725	7,609
Equipment	2,123	2,358	6,729	6,366
Legal and professional	1,678	2,012	5,096	6,800
Data processing	1,504	1,731	4,388	4,199
Marketing	782	1,139	2,910	3,325
Amortization of intangibles	1,460	1,789	4,806	4,299
FDIC insurance	783	415	2,394	1,255
Communications	206	302	727	840
Foreclosed assets, net	2	42	(32)	(66)
Other	2,043	2,212	6,488	6,056
Total noninterest expense	31,544	34,623	99,782	98,348
Income before income tax expense	11,341	23,060	22,311	57,105
Income tax expense	2,203	4,743	4,182	12,272
Net income	$ 9,138	$ 18,317	$ 18,129	$ 44,833
Per common share information
Earnings - basic (in dollars per share)	$ 0.58	$ 1.17	$ 1.16	$ 2.86
Earnings - diluted (in dollars per share)	0.58	1.17	1.15	2.86
Dividends paid (in dollars per share)	$ 0.2425	$ 0.2375	$ 0.7275	$ 0.7125

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 9,138	$ 18,317	$ 18,129	$ 44,833
Unrealized loss from AFS debt securities:
Unrealized net loss on debt securities AFS	(4,578)	(42,935)	(13,658)	(121,179)
Reclassification adjustment for losses (gains) included in net income	(79)	163	13,093	(272)
Reclassification of the change in fair value of AFS debt securities attributable to change in hedged risk	454	0	454	0
Income tax benefit	1,065	10,823	27	31,358
Unrealized net loss on AFS debt securities, net of reclassification adjustments	(3,138)	(31,949)	(84)	(90,093)
Reclassification of AFS debt securities to HTM:
Amortization of the net unrealized loss from the reclassification of AFS debt securities to HTM	586	746	1,768	3,152
Income tax expense	(148)	(189)	(447)	(817)
Amortization of net unrealized loss from the reclassification of AFS debt securities to HTM, net	438	557	1,321	2,335
Unrealized gain from cash flow hedging instruments:
Unrealized net gains in cash flow hedging instruments	1,829	0	5,288	0
Reclassification adjustment for net gain in cash flow hedging instruments included in income	(761)	0	(999)	0
Income tax expense	(270)	0	(1,085)	0
Unrealized net gains on cash flow hedge instruments, net of reclassification adjustment	798	0	3,204	0
Other comprehensive income (loss), net of tax	(1,902)	(31,392)	4,441	(87,758)
Comprehensive income (loss)	$ 7,236	$ (13,075)	$ 22,570	$ (42,925)

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)
Beginning balance at Dec. 31, 2021	$ 527,475	$ 16,581	$ 300,940	$ 243,365	$ (24,546)	$ (8,865)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	44,833			44,833
Other comprehensive (loss) income	(87,758)					(87,758)
Release/lapse of restriction on RSUs	(270)		(1,359)	(42)	1,131
Repurchase of common stock	(2,730)				(2,730)
Share-based compensation	1,837		1,837
Dividends paid on common stock	(11,158)			(11,158)
Ending balance at Sep. 30, 2022	472,229	16,581	301,418	276,998	(26,145)	(96,623)
Beginning balance at Jun. 30, 2022	488,832	16,581	300,859	262,395	(25,772)	(65,231)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	18,317			18,317
Other comprehensive (loss) income	(31,392)					(31,392)
Release/lapse of restriction on RSUs	(27)		(81)	(4)	58
Repurchase of common stock	(431)				(431)
Share-based compensation	640		640
Dividends paid on common stock	(3,710)			(3,710)
Ending balance at Sep. 30, 2022	472,229	16,581	301,418	276,998	(26,145)	(96,623)
Beginning balance at Dec. 31, 2022	492,793	16,581	302,085	289,289	(26,115)	(89,047)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	18,129			18,129
Other comprehensive (loss) income	4,441					4,441
Release/lapse of restriction on RSUs	(607)		(2,261)	(146)	1,800
Share-based compensation	2,065		2,065
Dividends paid on common stock	(11,410)			(11,410)
Ending balance at Sep. 30, 2023	505,411	16,581	301,889	295,862	(24,315)	(84,606)
Beginning balance at Jun. 30, 2023	501,341	16,581	301,424	290,548	(24,508)	(82,704)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,138			9,138
Other comprehensive (loss) income	(1,902)					(1,902)
Release/lapse of restriction on RSUs	(53)		(227)	(19)	193
Share-based compensation	692		692
Dividends paid on common stock	(3,805)			(3,805)
Ending balance at Sep. 30, 2023	$ 505,411	$ 16,581	$ 301,889	$ 295,862	$ (24,315)	$ (84,606)

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Stockholders' Equity [Abstract]
Release/lapse of restriction on RSUs (in shares)	6,615	2,280	67,761	43,079
Repurchase of common stock (in shares)		14,586		91,401
Dividends paid on common stock (in dollars per share)	$ 0.2425	$ 0.2375	$ 0.7275	$ 0.7125

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Operating Activities:
Net income	$ 9,138	$ 18,317	$ 18,129	$ 44,833
Adjustments to reconcile net income to net cash provided by operating activities:
Credit loss expense	1,551	638	4,081	3,920
Depreciation, amortization, and accretion			9,420	7,511
Net change in premises and equipment due to writedown or sale			68	500
Share-based compensation			2,065	1,837
Net loss (gain) on sale or call of debt securities available for sale			13,093	(272)
Net change in foreclosed assets due to writedown or sale			(29)	(71)
Net gain on sale of loans held for sale			(912)	(1,705)
Origination of loans held for sale			(41,650)	(81,490)
Proceeds from sales of loans held for sale			40,646	93,792
Increase in cash surrender value of bank-owned life insurance			(1,844)	(1,668)
(Increase) decrease in deferred income taxes, net			(75)	4,082
Bargain purchase gain			0	(1,257)
Change in:
Other assets			(2,701)	(34,484)
Other liabilities			15,543	36,791
Net cash provided by operating activities			55,834	72,319
Investing Activities:
Purchases of equity securities			(750)	(1,250)
Proceeds from sales of debt securities available for sale			218,667	129,823
Proceeds from maturities and calls of debt securities available for sale			101,194	133,018
Purchases of debt securities available for sale			(54,690)	(386,278)
Proceeds from maturities and calls of debt securities held to maturity			43,963	108,180
Net increase in loans held for investment			(224,068)	(215,738)
Purchases of premises and equipment			(2,280)	(1,980)
Proceeds from sale of foreclosed assets			135	345
Proceeds from sale of premises and equipment			880	23
Net cash acquired in business acquisition			0	31,375
Net cash provided by (used in) investing activities			83,051	(202,482)
Financing Activities:
Deposits			(105,713)	(101,501)
Short-term borrowings			(17,917)	121,627
Payments on finance lease liability	(46)	(41)	(135)	(121)
Payments of Federal Home Loan Bank borrowings			(11,000)	(21,000)
Proceeds from other long-term debt			0	25,000
Payments of other long-term debt			(3,750)	(5,000)
Taxes paid relating to the release/lapse of restriction on RSUs			(607)	(270)
Dividends paid			(11,410)	(11,158)
Repurchase of common stock			0	(2,730)
Net cash (used in) provided by financing activities			(150,532)	4,847
Net change in cash and cash equivalents			(11,647)	(125,316)
Cash and cash equivalents at beginning of period			86,435	203,830
Cash and cash equivalents at end of period	74,788	78,514	74,788	78,514
Supplemental disclosures of cash flow information:
Cash paid during the period for interest			65,992	17,628
Cash paid during the period for income taxes, net of refunds			1,456	8,229
Supplemental schedule of non-cash investing and financing activities:
Transfer of loans to foreclosed assets, net			3	20
Transfer of premises and equipment to assets held for sale			0	1,349
Transfer of debt securities available for sale to debt securities held to maturity			0	1,253,179
Non-cash assets acquired:
Investment securities	0	119,820	0	119,820
Total loans held for investment, net	0	281,326	0	281,326
Premises and equipment	0	7,363	0	7,363
Core deposit intangible	0	16,500	0	16,500
Bank-owned life insurance	0	7,862	0	7,862
Other assets	0	3,766	0	3,766
Total non-cash assets acquired			0	436,637
Liabilities assumed:
Deposits	0	463,638	0	463,638
Short-term borrowings	0	1,541	0	1,541
FHLB borrowings	0	250	0	250
Other liabilities	$ 0	$ 1,326	0	1,326
Total liabilities assumed			$ 0	$ 466,755

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Nature of Business and Significant Accounting Policies

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Business and Significant Accounting Policies

Nature of Business and Significant Accounting Policies

Nature of Business

MidWestOne Financial Group, Inc. (the "Company"), an Iowa corporation formed in 1983, is a bank holding company under the BHCA and a financial holding company under the GLBA. Our principal executive offices are located at 102 South Clinton Street, Iowa City, Iowa 52240.

The Company owns all of the outstanding common stock of MidWestOne Bank, an Iowa state non-member bank chartered in 1934 with its main office in Iowa City, Iowa. We operate primarily through MidWestOne Bank, our bank subsidiary.

On June 9, 2022, the Company acquired Iowa First Bancshares Corp., a bank holding company whose wholly-owned banking subsidiaries were First National Bank of Muscatine and First National Bank in Fairfield, community banks located in Muscatine and Fairfield, Iowa, respectively. Immediately following the completion of the acquisition, First National Bank of Muscatine and First National Bank in Fairfield were merged with and into the Bank. As consideration for the merger, we paid cash in the amount of $46.7 million.

Basis of Presentation

The accompanying interim condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, certain disclosures accompanying annual consolidated financial statements are omitted. In the opinion of management, all significant intercompany accounts and transactions have been eliminated and adjustments, consisting solely of normal recurring accruals and considered necessary for the fair presentation of financial statements for the interim periods, have been included. The current period's results of operations are not necessarily indicative of the results that ultimately may be achieved for the year. The interim condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2022, filed with the SEC on March 13, 2023.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect: (1) the reported amounts of assets and liabilities, (2) the disclosure of contingent assets and liabilities at the date of the financial statements, and (3) the reported amounts of revenues and expenses during the reporting period. These estimates are based on information available to management at the time the estimates are made. Actual results could differ from those estimates. The results for the three and nine months ended September 30, 2023 may not be indicative of results for the year ending December 31, 2023, or for any other period.

All significant accounting policies followed in the preparation of the quarterly financial statements are disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 13, 2023.

Segment Reporting

The Company’s activities are considered to be one reportable segment for financial reporting purposes. The Company is engaged in the business of commercial and retail banking and trust and investment management services with operations throughout central and eastern Iowa, the Minneapolis/St. Paul metropolitan area of Minnesota, southwestern Wisconsin, Naples and Fort Myers, Florida, and Denver, Colorado. Substantially all income is derived from a diverse base of commercial, mortgage and retail lending activities, and investments.

Effect of New Financial Accounting Standards

Accounting Guidance Pending Adoption at September 30, 2023

On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASC 848 contains optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. Certain optional expedients and exceptions for contract modifications and hedging relationships were amended in ASU 2021-01, Reference Rate Reform (Topic 848): Scope Refinement, issued on January 7, 2021. In addition, ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset

Date of Topic 848, deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which time entities will no longer be permitted to apply the relief in Topic 848. The adoption of ASU 2020-04 is not expected to have a material impact on the Company’s consolidated financial statements.

Accounting Guidance Adopted at September 30, 2023

On March 31, 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. For creditors that have adopted the CECL accounting guidance within ASU 2016-13, the amendments eliminate the accounting guidance for TDRs within ASC 310-40, while also enhancing the disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. In addition, public business entities must also disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20. The amendments are effective for fiscal years beginning after December 15, 2022 and should be applied prospectively, with an option to apply a modified retrospective transition approach for the recognition and measurement of TDRs. The adoption of ASU 2022-02 was applied prospectively and did not have a material impact on the Company's consolidated financial statements.

XML

Business Combinations

9 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Business Combinations

Business Combinations

On June 9, 2022, the Company acquired 100% of the equity of IOFB through a merger and acquired its wholly-owned subsidiaries FNBM and FNBF for cash consideration of $46.7 million. The primary reasons for the acquisition were to enter the Muscatine, Iowa market and increase our presence in Fairfield, Iowa. Immediately following the completion of the acquisition, FNBM and FNBF were merged with and into the Bank.

The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their fair values as of the June 9, 2022 acquisition date net of any applicable tax effects using a methodology similar to the Company's legacy assets and liabilities (refer to Note 14. Fair Value of Financial Instruments and Fair Value Measurements for additional information regarding the fair value methodology). The bargain purchase gain, which is recorded in 'Other' noninterest income, was generated as a result of the estimated fair value of identifiable net assets acquired exceeding the merger consideration. Bargain purchase gains are recorded net of deferred taxes and are treated as permanent differences, resulting in lower effective tax rate in the period recorded. The revenue and earnings amount specific to IOFB since the acquisition date that are included in the consolidated results for the three and nine months ended September 30, 2022 are not readily determinable. The disclosures of these amounts are impracticable due to the merging of certain processes and systems at the acquisition date.

The table below summarizes the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed:

(in thousands)	June 9, 2022
Merger consideration
Cash consideration	$	46,672
Identifiable net assets acquired, at fair value
Assets acquired
Cash and due from banks	$	10,192
Interest earning deposits in banks	67,855
Debt securities	119,820
Loans held for investment	281,326
Premises and equipment	7,363
Core deposit intangible	16,500
Other assets	14,140
Total assets acquired	517,196
Liabilities assumed
Deposits	$	(463,638)
Other liabilities	(3,117)
Total liabilities assumed	(466,755)
Identifiable net assets acquired, at fair value	50,441
Bargain Purchase Gain	$	3,769

Of the $281.3 million net loans acquired, $11.0 million exhibited credit deterioration on the date of purchase. The following table provides a summary of these PCD loans at acquisition:

(in thousands)	June 9, 2022
Par value of PCD loans acquired	$	15,396
PCD ACL at acquisition	(3,371)
Non-credit discount on PCD loans	(1,005)
Purchase price of PCD loans	$	11,020

For illustrative purposes only, the following table presents certain unaudited pro forma information for the three and nine months ended September 30, 2022. This unaudited, estimated pro forma information was calculated as if IOFB had been acquired as of the beginning of the year prior to the date of acquisition. This unaudited pro forma information combines the historical results of IOFB and the Company and includes adjustments for the estimated impact of certain fair value purchase accounting, interest expense, acquisition-related expenses, and income tax expense for the respective periods. The pro forma information is not indicative of what would have occurred had the acquisition occurred as of the beginning of the year prior to the acquisition. Additionally, MidWestOne expects to achieve further operating cost savings and other business synergies, including revenue growth as a result of the acquisition, which are not reflected in the pro forma amounts that follow. As a result, actual amounts would have differed from the unaudited pro forma information presented.

	Three Months Ended			Nine Months Ended
	September 30,			September 30,
(in thousands, except per share amounts)		2022		2022
Total revenues		$	55,954	$	165,053
Net Income		$	17,111	$	46,663
EPS - basic		$	1.10	$	2.98
EPS - diluted		$	1.09	$	2.97

The Company announced during the third quarter of 2023 the execution of a definitive merger agreement for the acquisition of DNVB, the parent company for the Bank of Denver.

The following table summarizes the DNVB and IOFB acquisition-related expenses, which are included in the respective income statement line items, for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2023		2022		2023		2022
Noninterest Expense
Compensation and employee benefits	$	—	$	132	$	70	$	282
Occupancy expense of premises, net	—		—		—		1
Equipment	—		14		—		25
Legal and professional	11		193		11		894
Data processing	—		304		65		380
Marketing	—		90		—		162
Communications	—		—		—		3
Other	—		30		1		45
Total acquisition-related expenses	$	11	$	763	$	147	$	1,792

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Debt Securities

9 Months Ended

Sep. 30, 2023

Debt Securities [Abstract]

Debt Securities

Debt SecuritiesOn January 1, 2022, the Company transferred, at fair value, $1.25 billion of mortgage-backed securities, collateralized mortgage obligations, and securities issued by state and political subdivisions from the available for sale classification to the held to maturity classification. The net unrealized after tax loss of $11.5 million associated with those re-classified securities remained in accumulated other comprehensive loss and will be amortized over the remaining life of the securities. At September 30, 2023, there was $7.4 million of net unrealized after tax loss remaining in accumulated other comprehensive loss. No gains or losses were recognized in earnings at the time of the transfer.

The following tables summarize the amortized cost, gross unrealized gains and losses and the resulting fair value of debt securities as of the dates indicated:

	As of September 30, 2023
(in thousands)	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Loss related to Debt Securities		Fair Value
Available for Sale
State and political subdivisions	$	177,300	$	1	$	14,833	$	—	$	162,468
Mortgage-backed securities	5,574		—		247		—		5,327
Collateralized loan obligations	52,697		6		250		—		52,453
Collateralized mortgage obligations	159,344		—		27,421		—		131,923
Corporate debt securities	586,612		60		66,073		—		520,599
Total available for sale debt securities	$	981,527	$	67	$	108,824	$	—	$	872,770
Held to Maturity
State and political subdivisions	$	532,885	$	—	$	100,821	$	—	$	432,064
Mortgage-backed securities	76,310		—		15,863		—		60,447
Collateralized mortgage obligations	476,556		—		120,704		—		355,852
Total held to maturity debt securities	$	1,085,751	$	—	$	237,388	$	—	$	848,363
(1) Amortized cost for the held to maturity securities includes $223 thousand of unamortized gain in state and political subdivisions, $35 thousand of unamortized gains in mortgage-backed securities and $10.2 million of unamortized losses in collateralized mortgage obligations related to the re-classification of securities from available for sale to held to maturity on January 1, 2022.

	As of December 31, 2022
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Loss related to Debt Securities		Fair Value
Available for Sale
U.S. Government agencies and corporations	$	7,598	$	—	$	253	$	—	$	7,345
State and political subdivisions	303,573		27		18,244		—		285,356
Mortgage-backed securities	6,165		11		232		—		5,944
Collateralized mortgage obligations	172,568		—		25,375		—		147,193
Corporate debt securities	771,836		125		64,252		—		707,709
Total available for sale debt securities	$	1,261,740	$	163	$	108,356	$	—	$	1,153,547
Held to Maturity
State and political subdivisions	$	538,746	$	—	$	88,349	$	—	$	450,397
Mortgage-backed securities	81,032		—		12,851		—		68,181
Collateralized mortgage obligations	509,643		—		103,327		—		406,316
Total held to maturity debt securities	$	1,129,421	$	—	$	204,527	$	—	$	924,894

Investment securities with a fair value of $1.27 billion and $690.2 million at September 30, 2023 and December 31, 2022, respectively, were pledged on public deposits, securities sold under agreements to repurchase and for other purposes, as required or permitted by law.

Accrued interest receivable on available for sale debt securities and held to maturity debt securities is recorded within 'Other Assets,' and is excluded from the estimate of credit losses. At September 30, 2023 the accrued interest receivable on available for sale debt securities and held to maturity debt securities totaled $6.8 million and $3.5 million, respectively. At December 31, 2022 the accrued interest receivable on available for sale debt securities and held to maturity debt securities totaled $7.6 million and $3.7 million, respectively.

The following table presents debt securities AFS in an unrealized loss position for which an allowance for credit losses has not been recorded as of September 30, 2023, aggregated by investment category and length of time in a continuous loss position:

		As of September 30, 2023
	Number of Securities	Less than 12 Months				12 Months or More				Total
Available for Sale		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(in thousands, except number of securities)
State and political subdivisions	200	$	17,776	$	969	$	141,021	$	13,864	$	158,797	$	14,833
Mortgage-backed securities	29	376		6		4,910		241		5,286		247
Collateralized loan obligations	4	39,870		250		—		—		39,870		250
Collateralized mortgage obligations	20	6,628		27		125,295		27,394		131,923		27,421
Corporate debt securities	142	4,130		75		493,017		65,998		497,147		66,073
Total	395	$	68,780	$	1,327	$	764,243	$	107,497	$	833,023	$	108,824

As of September 30, 2023, 200 state and political subdivisions securities with total unrealized losses of $14.8 million were held by the Company. Management evaluated these securities through a process that included consideration of credit agency ratings and payment history. In addition, management evaluated securities by considering the yield spread to treasury securities and the most recent financial information available. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses.

As of September 30, 2023, 29 mortgage-backed securities, and 20 collateralized mortgage obligations with unrealized losses totaling $27.7 million were held by the Company. Management evaluated the payment history of these securities. In addition, management considered the implied U.S. government guarantee of these agency securities and the level of credit enhancement for non-agency securities. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses.

As of September 30, 2023, 4 collateralized loan obligations with unrealized losses of $0.3 million were held by the Company. Management evaluated these securities through a process that included consideration of credit agency ratings, priority of cash flows and the amount of over-collateralization. In addition, management may evaluate securities by considering the yield spread to treasury securities and the most recent financial information available. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses.

As of September 30, 2023, 142 corporate debt securities with total unrealized losses of $66.1 million were held by the Company. Management evaluated these securities by considering credit agency ratings and payment history. In addition, management evaluated securities by considering the yield spread to treasury securities and the most recent financial information available. Based on this evaluation, management concluded that the decline in fair value was not attributable to credit losses.

The following table presents debt securities AFS in an unrealized loss position for which an allowance for credit losses has not been recorded as of December 31, 2022, aggregated by investment category and length of time in a continuous loss position:

		As of December 31, 2022
Available for Sale	Number of Securities	Less than 12 Months				12 Months or More				Total
		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(in thousands, except number of securities)
U.S. Government agencies and corporations	8	$	7,345	$	253	$	—	$	—	$	7,345	$	253
State and political subdivisions	380	248,339		14,553		20,631		3,691		268,970		18,244
Mortgage-backed securities	27	5,323		231		45		1		5,368		232
Collateralized mortgage obligations	20	75,041		7,121		72,152		18,254		147,193		25,375
Corporate debt securities	159	369,441		21,679		288,329		42,573		657,770		64,252
Total	594	$	705,489	$	43,837	$	381,157	$	64,519	$	1,086,646	$	108,356

The Company evaluates debt securities held to maturity for current expected credit losses. There were no debt securities held to maturity classified as nonaccrual or past due as of September 30, 2023. Held-to-maturity securities are evaluated on a quarterly basis using historical probability of default and loss given default information specific to the investment category. If this evaluation determines that credit losses exist, an allowance for credit loss is recorded and included in earnings as a component of credit loss expense. Based on this evaluation, management concluded that no allowance for credit loss for these securities was required.

Proceeds and gross realized gains and losses on debt securities available for sale for the three and nine months ended September 30, 2023 and 2022, were as follows:

	Three Months Ended				Nine Months Ended
(in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Proceeds from sales of debt securities available for sale	$	—	$	17,570	$	218,667	$	129,823
Gross realized losses from sales of debt securities available for sale	—		(167)		(13,170)		(167)
Net realized loss from sales of debt securities available for sale(1)	$	—	$	(167)	$	(13,170)	$	(167)
(1) The difference in investment security gains, net reported herein as compared to the Consolidated Statements of Income is associated with the net realized gain from the call of debt securities of $79 thousand and $77 thousand for the three and nine months ended September 30, 2023 and $4 thousand and $439 thousand for the three and nine months ended September 30, 2022.

The contractual maturity distribution of investment debt securities at September 30, 2023, is shown below. Expected maturities of MBS, CLO and CMO may differ from contractual maturities because the mortgages underlying the securities may be called or prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following summary.

	Available for Sale				Held to Maturity
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	53,730	$	52,581	$	2,563	$	2,495
Due after one year through five years	522,893		473,528		132,842		117,757
Due after five years through ten years	158,373		133,485		232,569		186,814
Due after ten years	28,916		23,473		164,911		124,998
	$	763,912	$	683,067	$	532,885	$	432,064
Mortgage-backed securities	5,574		5,327		76,310		60,447
Collateralized loan obligations	52,697		52,453		—		—
Collateralized mortgage obligations	159,344		131,923		476,556		355,852
Total	$	981,527	$	872,770	$	1,085,751	$	848,363

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Loans Receivable and the Allowance for Credit Losses

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Loans Receivable and the Allowance for Credit Losses

Loans Receivable and the Allowance for Credit Losses

The composition of loans by class of receivable was as follows:

	As of
(in thousands)	September 30, 2023		December 31, 2022
Agricultural	$	111,950	$	115,320
Commercial and industrial	1,078,773		1,055,162
Commercial real estate:
Construction & development	331,868		270,991
Farmland	182,621		183,913
Multifamily	337,509		252,129
Commercial real estate-other	1,324,019		1,272,985
Total commercial real estate	2,176,017		1,980,018
Residential real estate:
One- to four- family first liens	456,771		451,210
One- to four- family junior liens	173,275		163,218
Total residential real estate	630,046		614,428
Consumer	69,183		75,596
Loans held for investment, net of unearned income	4,065,969		3,840,524
Allowance for credit losses	(51,600)		(49,200)
Total loans held for investment, net	$	4,014,369	$	3,791,324

Loans with unpaid principal in the amount of $1.14 billion and $1.01 billion at September 30, 2023 and December 31, 2022, respectively, were pledged to the FHLB as collateral for borrowings.

Non-accrual and Delinquent Status

Loans are placed on non-accrual when (1) payment in full of principal and interest is no longer expected or (2) principal or interest has been in default for 90 days or more for all loan types, except owner occupied residential real estate, which are moved to non-accrual at 120 days or more past due, unless the loan is both well secured with marketable collateral and in the process of collection. All loans rated doubtful or worse, and certain loans rated substandard, are placed on non-accrual.

A non-accrual loan may be restored to an accrual status when (1) all past due principal and interest has been paid (excluding renewals and modifications that involve the capitalizing of interest) or (2) the loan becomes well secured with marketable collateral and is in the process of collection. An established track record of performance is also considered when determining accrual status.

Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment.

The following tables present the amortized cost basis of loans based on delinquency status:

			Age Analysis of Past-Due Financial Assets								90 Days or More Past Due And Accruing
(in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
September 30, 2023
Agricultural	$	111,713	$	—	$	13	$	224	$	111,950	$	—
Commercial and industrial	1,077,276		616		31		850		1,078,773		—
Commercial real estate:
Construction and development	331,868		—		—		—		331,868		—
Farmland	181,352		30		—		1,239		182,621		—
Multifamily	337,509		—		—		—		337,509		—
Commercial real estate-other	1,319,503		29		—		4,487		1,324,019		—
Total commercial real estate	2,170,232		59		—		5,726		2,176,017		—
Residential real estate:
One- to four- family first liens	449,842		3,609		2,286		1,034		456,771		100
One- to four- family junior liens	172,936		202		23		114		173,275		—
Total residential real estate	622,778		3,811		2,309		1,148		630,046		100
Consumer	68,869		275		36		3		69,183		—
Total	$	4,050,868	$	4,761	$	2,389	$	7,951	$	4,065,969	$	100

			Age Analysis of Past-Due Financial Assets								90 Days or More Past Due And Accruing
(in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
December 31, 2022
Agricultural	$	114,922	$	100	$	—	$	298	$	115,320	$	—
Commercial and industrial	1,052,406		922		111		1,723		1,055,162		—
Commercial real estate:
Construction and development	270,905		86		—		—		270,991		—
Farmland	182,115		729		—		1,069		183,913		—
Multifamily	252,129		—		—		—		252,129		—
Commercial real estate-other	1,266,874		5,574		45		492		1,272,985		—
Total commercial real estate	1,972,023		6,389		45		1,561		1,980,018		—
Residential real estate:
One- to four- family first liens	446,066		3,177		954		1,013		451,210		565
One- to four- family junior liens	161,989		301		78		850		163,218		—
Total residential real estate	608,055		3,478		1,032		1,863		614,428		565
Consumer	75,443		110		17		26		75,596		—
Total	$	3,822,849	$	10,999	$	1,205	$	5,471	$	3,840,524	$	565

The following table presents the amortized cost basis of loans on non-accrual status, amortized cost basis of loans on non-accrual status with no allowance for credit losses recorded, and loans past due 90 days or more and still accruing by class of loan:

	Nonaccrual				Nonaccrual with no Allowance for Credit Losses				90 Days or More Past Due And Accruing
(in thousands)	September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
Agricultural	$	240	$	377	$	224	$	281	$	—	$	—
Commercial and industrial	18,472		2,728		12,585		1,049		—		—
Commercial real estate:
Construction and development	—		—		—		—		—		—
Farmland	1,736		2,278		1,590		1,997		—		—
Multifamily	—		—		—		—		—		—
Commercial real estate-other	5,117		6,397		369		5,647		—		—
Total commercial real estate	6,853		8,675		1,959		7,644		—		—
Residential real estate:
One- to four- family first liens	2,339		2,275		546		928		100		565
One- to four- family junior liens	969		1,165		—		—		—		—
Total residential real estate	3,308		3,440		546		928		100		565
Consumer	14		36		—		—		—		—
Total	$	28,887	$	15,256	$	15,314	$	9,902	$	100	$	565

The interest income recognized on loans that were on nonaccrual for the three months ended September 30, 2023 and September 30, 2022 was $93 thousand and $70 thousand, respectively. The interest income recognized on loans that were on nonaccrual for the nine months ended September 30, 2023 and September 30, 2022 was $186 thousand and $345 thousand, respectively.

Credit Quality Information

The Company aggregates loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, and other factors. The Company analyzes loans individually to classify the loans as to credit risk. This analysis includes non-homogenous loans, such as agricultural, commercial and industrial, commercial real estate and non-owner occupied residential real estate loans. Loans not meeting the criteria described below that are analyzed individually are considered to be pass-rated. The Company uses the following definitions for risk ratings:

Special Mention/Watch - A special mention/watch asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention/watch assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.

Substandard - Substandard loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable.

Loss - Loans classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future.

Homogenous loans, including owner occupied residential real estate and consumer loans, are not individually risk rated. Instead, these loans are categorized based on performance: performing and nonperforming. Nonperforming loans include those loans on nonaccrual and loans greater than 90 days past due and on accrual.

The following table sets forth the amortized cost basis of loans by class of receivable by credit quality indicator, and vintage, in addition to the current period gross write-offs by class of receivable and vintage, based on the most recent analysis performed, as of September 30, 2023. As of September 30, 2023, there were no 'loss' rated credits.

	Term Loans by Origination Year												Revolving Loans
September 30, 2023 (in thousands)	2023		2022		2021		2020		2019		Prior				Total
Agricultural
Pass	$	11,277	$	13,087	$	9,451	$	3,268	$	1,359	$	1,155	$	63,474	$	103,071
Special mention / watch	268		609		801		102		6		523		3,722		6,031
Substandard	394		151		184		214		2		225		1,678		2,848
Doubtful	—		—		—		—		—		—		—		—
Total	$	11,939	$	13,847	$	10,436	$	3,584	$	1,367	$	1,903	$	68,874	$	111,950
Commercial and industrial
Pass	$	111,886	$	243,011	$	212,836	$	129,482	$	27,383	$	119,645	$	161,886	$	1,006,129
Special mention / watch	1,437		766		652		4,646		8,101		7,825		13,751		37,178
Substandard	1,471		2,571		2,440		1,344		717		22,571		4,352		35,466
Doubtful	—		—		—		—		—		—		—		—
Total	$	114,794	$	246,348	$	215,928	$	135,472	$	36,201	$	150,041	$	179,989	$	1,078,773
CRE - Construction and development
Pass	$	69,354	$	198,619	$	47,522	$	3,532	$	833	$	1,118	$	9,754	$	330,732
Special mention / watch	—		—		474		—		—		—		412		886
Substandard	—		249		—		—		—		1		—		250
Doubtful	—		—		—		—		—		—		—		—
Total	$	69,354	$	198,868	$	47,996	$	3,532	$	833	$	1,119	$	10,166	$	331,868
CRE - Farmland
Pass	$	17,318	$	50,872	$	48,074	$	19,438	$	6,703	$	16,056	$	1,866	$	160,327
Special mention / watch	1,237		2,761		2,456		6,104		—		1,180		804		14,542
Substandard	1,592		118		1,545		1,103		1,058		2,306		30		7,752
Doubtful	—		—		—		—		—		—		—		—
Total	$	20,147	$	53,751	$	52,075	$	26,645	$	7,761	$	19,542	$	2,700	$	182,621
CRE - Multifamily
Pass	$	28,961	$	55,115	$	112,033	$	83,413	$	8,800	$	5,654	$	33	$	294,009
Special mention / watch	—		1,244		280		19,112		7,899		7,025		—		35,560
Substandard	—		—		7,611		329		—		—		—		7,940
Doubtful	—		—		—		—		—		—		—		—
Total	$	28,961	$	56,359	$	119,924	$	102,854	$	16,699	$	12,679	$	33	$	337,509
CRE - Other
Pass	$	151,212	$	292,139	$	272,055	$	264,462	$	78,764	$	97,815	$	47,111	$	1,203,558
Special mention / watch	1,520		25,905		21,389		4,639		4,290		3,301		3,947		64,991
Substandard	324		2,104		1,704		20,414		12,067		18,018		839		55,470
Doubtful	—		—		—		—		—		—		—		—
Total	$	153,056	$	320,148	$	295,148	$	289,515	$	95,121	$	119,134	$	51,897	$	1,324,019
RRE - One- to four- family first liens
Pass / Performing	$	52,320	$	128,048	$	94,709	$	55,492	$	20,236	$	84,489	$	11,312	$	446,606
Special mention / watch	470		721		36		633		1,851		323		—		4,034
Substandard / Nonperforming	1,171		463		485		166		167		3,679		—		6,131
Doubtful	—		—		—		—		—		—		—		—
Total	$	53,961	$	129,232	$	95,230	$	56,291	$	22,254	$	88,491	$	11,312	$	456,771
RRE - One- to four- family junior liens
Performing	$	20,458	$	31,327	$	19,622	$	7,643	$	2,449	$	8,322	$	82,485	$	172,306
Nonperforming	—		—		—		26		203		740		—		969
Total	$	20,458	$	31,327	$	19,622	$	7,669	$	2,652	$	9,062	$	82,485	$	173,275
Consumer
Performing	$	21,003	$	18,598	$	11,481	$	5,213	$	1,821	$	6,911	$	4,143	$	69,170
Nonperforming	—		—		—		5		5		3		—		13
Total	$	21,003	$	18,598	$	11,481	$	5,218	$	1,826	$	6,914	$	4,143	$	69,183

	Term Loans by Origination Year												Revolving Loans
September 30, 2023 (in thousands)	2023		2022		2021		2020		2019		Prior				Total
Total by Credit Quality Indicator Category
Pass	$	442,328	$	980,891	$	796,680	$	559,087	$	144,078	$	325,932	$	295,436	$	3,544,432
Special mention / watch	4,932		32,006		26,088		35,236		22,147		20,177		22,636		163,222
Substandard	4,952		5,656		13,969		23,570		14,011		46,800		6,899		115,857
Doubtful	—		—		—		—		—		—		—		—
Performing	41,461		49,925		31,103		12,856		4,270		15,233		86,628		241,476
Nonperforming	—		—		—		31		208		743		—		982
Total	$	493,673	$	1,068,478	$	867,840	$	630,780	$	184,714	$	408,885	$	411,599	$	4,065,969
Year-to-date Current Period Gross Write-offs
Agricultural	$	—	$	8	$	1	$	17	$	—	$	—	$	—	$	26
Commercial and industrial	30		256		143		115		431		45		—		1,020
CRE - Construction and development	—		—		—		—		—		—		—		—
CRE - Farmland	—		—		—		—		—		—		—		—
CRE - Multifamily	—		—		—		—		—		—		—		—
CRE - Other	—		—		—		—		—		830		—		830
RRE - One-to-four-family first liens	—		—		—		—		—		35		—		35
RRE - One-to-four-family junior liens	—		19		—		—		—		—		—		19
Consumer	—		424		9		3		11		4		—		451
Total Current Period Gross Write-offs	$	30	$	707	$	153	$	135	$	442	$	914	$	—	$	2,381

The following table sets forth the amortized cost basis of loans by class of receivable by credit quality indicator and vintage based on the most recent analysis performed, as of December 31, 2022. As of December 31, 2022, there were no 'loss' rated credits.

	Term Loans by Origination Year												Revolving Loans
December 31, 2022 (in thousands)	2022		2021		2020		2019		2018		Prior				Total
Agricultural
Pass	$	20,279	$	12,511	$	5,398	$	2,883	$	939	$	1,063	$	65,395	$	108,468
Special mention / watch	143		1,012		115		36		—		604		1,655		3,565
Substandard	48		646		366		4		7		302		1,914		3,287
Doubtful	—		—		—		—		—		—		—		—
Total	$	20,470	$	14,169	$	5,879	$	2,923	$	946	$	1,969	$	68,964	$	115,320
Commercial and industrial
Pass	$	262,500	$	232,263	$	151,567	$	48,199	$	27,680	$	115,877	$	163,205	$	1,001,291
Special mention / watch	3,975		3,574		5,465		592		3,299		1,864		12,299		31,068
Substandard	556		166		1,172		756		556		18,585		1,012		22,803
Doubtful	—		—		—		—		—		—		—		—
Total	$	267,031	$	236,003	$	158,204	$	49,547	$	31,535	$	136,326	$	176,516	$	1,055,162
CRE - Construction and development
Pass	$	144,597	$	73,832	$	19,324	$	989	$	1,058	$	549	$	28,069	$	268,418
Special mention / watch	1,787		499		—		—		—		—		—		2,286
Substandard	281		—		—		—		—		6		—		287
Doubtful	—		—		—		—		—		—		—		—
Total	$	146,665	$	74,331	$	19,324	$	989	$	1,058	$	555	$	28,069	$	270,991
CRE - Farmland
Pass	$	55,251	$	52,802	$	28,744	$	7,266	$	8,406	$	12,895	$	1,946	$	167,310
Special mention / watch	3,058		2,229		1,470		—		225		21		1,693		8,696
Substandard	148		1,974		1,192		1,136		1,459		1,998		—		7,907
Doubtful	—		—		—		—		—		—		—		—
Total	$	58,457	$	57,005	$	31,406	$	8,402	$	10,090	$	14,914	$	3,639	$	183,913
CRE - Multifamily
Pass	$	31,018	$	93,907	$	84,573	$	17,137	$	2,549	$	5,161	$	49	$	234,394
Special mention / watch	1,000		—		1,567		—		5,931		1,178		—		9,676
Substandard	—		7,725		334		—		—		—		—		8,059
Doubtful	—		—		—		—		—		—		—		—
Total	$	32,018	$	101,632	$	86,474	$	17,137	$	8,480	$	6,339	$	49	$	252,129
CRE - Other
Pass	$	322,753	$	314,376	$	296,368	$	79,408	$	31,041	$	81,708	$	51,064	$	1,176,718
Special mention / watch	8,858		3,399		13,245		10,365		1,137		8,122		2,518		47,644
Substandard	752		589		19,702		13,294		10,197		4,089		—		48,623
Doubtful	—		—		—		—		—		—		—		—
Total	$	332,363	$	318,364	$	329,315	$	103,067	$	42,375	$	93,919	$	53,582	$	1,272,985
RRE - One- to four- family first liens
Pass / Performing	$	139,289	$	103,534	$	63,627	$	23,831	$	21,868	$	77,967	$	11,438	$	441,554
Special mention / watch	1,074		611		672		1,920		150		702		—		5,129
Substandard / Nonperforming	175		438		174		175		674		2,891		—		4,527
Doubtful	—		—		—		—		—		—		—		—
Total	$	140,538	$	104,583	$	64,473	$	25,926	$	22,692	$	81,560	$	11,438	$	451,210
RRE - One- to four- family junior liens
Performing	$	37,296	$	22,908	$	8,906	$	3,058	$	3,757	$	6,330	$	79,798	$	162,053
Nonperforming	—		23		31		179		756		76		100		1,165
Total	$	37,296	$	22,931	$	8,937	$	3,237	$	4,513	$	6,406	$	79,898	$	163,218
Consumer
Performing	$	32,584	$	18,979	$	7,966	$	3,489	$	1,646	$	6,641	$	4,255	$	75,560
Nonperforming	—		2		16		9		4		5		—		36
Total	$	32,584	$	18,981	$	7,982	$	3,498	$	1,650	$	6,646	$	4,255	$	75,596
Total by Credit Quality Indicator Category
Pass	$	975,687	$	883,225	$	649,601	$	179,713	$	93,541	$	295,220	$	321,166	$	3,398,153
Special mention / watch	19,895		11,324		22,534		12,913		10,742		12,491		18,165		108,064
Substandard	1,960		11,538		22,940		15,365		12,893		27,871		2,926		95,493
Doubtful	—		—		—		—		—		—		—		—
Performing	69,880		41,887		16,872		6,547		5,403		12,971		84,053		237,613
Nonperforming	—		25		47		188		760		81		100		1,201
Total	$	1,067,422	$	947,999	$	711,994	$	214,726	$	123,339	$	348,634	$	426,410	$	3,840,524

Allowance for Credit Losses

The following are the economic factors utilized by the Company for its loan credit loss estimation process at September 30, 2023, and the forecast for each factor at that date: (1) Midwest unemployment – increases over the next four forecasted quarters; (2) Year-to-year change in national retail sales - increases over the next four forecasted quarters; (3) Year-to-year change in CRE Index - decreases in the next four forecasted quarters; (4) Year-to-year change in U.S. GDP - increases over the next four forecasted quarters; (5) Year-to-year change in National Home Price Index – increases over the next two forecasted quarters, with declines in the third and fourth forecasted quarters; and (6) Rental Vacancy - increases over the next four forecasted quarters. In addition, management utilized qualitative factors to adjust the calculated ACL as appropriate. Qualitative factors are based on management’s judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions.

The increase in the ACL between September 30, 2023 and December 31, 2022 is primarily driven by reserves related to loans individually evaluated for impairment. Net loan charge-offs were $0.5 million for the three months ended September 30, 2023 as compared to net loan charge-offs of $0.6 million for the three months ended September 30, 2022. Net loan charge-offs were $1.7 million for the nine months ended September 30, 2023 as compared to net loan charge-offs of $3.1 million for the nine months ended September 30, 2022.

We have made a policy election to report interest receivable as a separate line on the balance sheet. Accrued interest receivable, which is recorded within 'Other Assets', totaled $19.0 million at September 30, 2023 and $15.3 million at December 31, 2022 and is excluded from the estimate of credit losses. The changes in the allowance for credit losses by portfolio segment were as follows:

	For the Three Months Ended September 30, 2023 and 2022
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
For the Three Months Ended September 30, 2023
Beginning balance	$	617	$	22,921	$	21,911	$	4,393	$	558	$	50,400
Charge-offs	(25)		(511)		—		(21)		(178)		(735)
Recoveries	126		79		4		3		72		284
Credit loss expense (benefit)(1)	(181)		(426)		1,872		268		118		1,651
Ending balance	$	537	$	22,063	$	23,787	$	4,643	$	570	$	51,600
For the Three Months Ended September 30, 2022
Beginning balance	$	987	$	21,166	$	24,399	$	5,174	$	624	$	52,350
Charge-offs	(248)		(280)		(135)		(52)		(255)		(970)
Recoveries	1		295		6		48		32		382
Credit loss expense (benefit) (1)	241		3,075		(3,322)		138		206		338
Ending balance	$	981	$	24,256	$	20,948	$	5,308	$	607	$	52,100
(1) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss (benefit) expense of $(0.1) million and $0.3 million related to off-balance sheet credit exposures for the three months ended September 30, 2023 and September 30, 2022, respectively.

	For the Nine Months Ended September 30, 2023 and 2022
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
For the Nine Months Ended September 30, 2023
Beginning balance	$	923	$	22,855	$	20,123	$	4,678	$	621	$	49,200
Charge-offs	(26)		(1,020)		(830)		(54)		(451)		(2,381)
Recoveries	153		349		15		23		160		700
Credit loss expense (benefit)(1)	(513)		(121)		4,479		(4)		240		4,081
Ending balance	$	537	$	22,063	$	23,787	$	4,643	$	570	$	51,600
For the Nine Months Ended September 30, 2022
Beginning balance	$	667	$	17,294	$	26,120	$	4,010	$	609	$	48,700
PCD allowance established in acquisition	512		1,473		1,227		159		—		3,371
Charge-offs	(249)		(843)		(2,319)		(90)		(540)		(4,041)
Recoveries	9		613		154		68		106		950
Credit loss (benefit) expense(1)	42		5,719		(4,234)		1,161		432		3,120
Ending balance	$	981	$	24,256	$	20,948	$	5,308	$	607	$	52,100
(1) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss expense (benefit) of $0.0 million and $0.8 million related to off-balance sheet credit exposures for the nine months ended September 30, 2023 and September 30, 2022, respectively.

The composition of allowance for credit losses by portfolio segment based on evaluation method was as follows:

	As of September 30, 2023
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
Loans held for investment, net of unearned income
Individually evaluated for impairment	$	224	$	17,687	$	12,759	$	1,167	$	—	$	31,837
Collectively evaluated for impairment	111,726		1,061,086		2,163,258		628,879		69,183		4,034,132
Total	$	111,950	$	1,078,773	$	2,176,017	$	630,046	$	69,183	$	4,065,969
Allowance for credit losses:
Individually evaluated for impairment	$	—	$	2,879	$	1,128	$	46	$	—	$	4,053
Collectively evaluated for impairment	537		19,184		22,659		4,597		570		47,547
Total	$	537	$	22,063	$	23,787	$	4,643	$	570	$	51,600

	As of December 31, 2022
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
Loans held for investment, net of unearned income
Individually evaluated for impairment	$	2,531	$	2,184	$	15,768	$	1,650	$	—	$	22,133
Collectively evaluated for impairment	112,789		1,052,978		1,964,250		612,778		75,596		3,818,391
Total	$	115,320	$	1,055,162	$	1,980,018	$	614,428	$	75,596	$	3,840,524
Allowance for credit losses:
Individually evaluated for impairment	$	500	$	600	$	705	$	180	$	—	$	1,985
Collectively evaluated for impairment	423		22,255		19,418		4,498		621		47,215
Total	$	923	$	22,855	$	20,123	$	4,678	$	621	$	49,200

The following tables present the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans:

	As of September 30, 2023
(in thousands)	Primary Type of Collateral
	Real Estate		Equipment		Other		Total		ACL Allocation
Agricultural	$	12	$	212	$	—	$	224	$	—
Commercial and industrial	15,992		326		1,369		17,687		2,879
Commercial real estate:
Construction and development	—		—		—		—		—
Farmland	5,582		—		—		5,582		—
Multifamily	—		—		—		—		—
Commercial real estate-other	6,991		—		186		7,177		1,128
Residential real estate:
One- to four- family first liens	546		—		—		546		—
One- to four- family junior liens	—		—		621		621		46
Consumer	—		—		—		—		—
Total	$	29,123	$	538	$	2,176	$	31,837	$	4,053

	As of December 31, 2022
(in thousands)	Primary Type of Collateral
	Real Estate		Equipment		Other		Total		ACL Allocation
Agricultural	$	68	$	2,463	$	—	$	2,531	$	500
Commercial and industrial	856		736		592		2,184		600
Commercial real estate:
Construction and development	—		—		—		—		—
Farmland	4,515		—		—		4,515		—
Multifamily	—		—		—		—		—
Commercial real estate-other	11,006		—		247		11,253		705
Residential real estate:
One- to four- family first liens	929		—		—		929		—
One- to four- family junior liens	—		—		721		721		180
Consumer	—		—		—		—		—
Total	$	17,374	$	3,199	$	1,560	$	22,133	$	1,985

Loan Modifications to Borrowers Experiencing Financial Difficulty

Occasionally, the Company may modify loans to borrowers who are experiencing financial difficulty. Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, term extension, an other-than-insignificant payment delay, interest rate reduction, or combination thereof.

The following table presents the amortized cost basis of loans as of September 30, 2023 that were modified during the three and nine months ended September 30, 2023 and experiencing financial difficulty at the time of the modification by class and by type of modification:

	For the Three Months and Nine Months Ended September 30, 2023
									Combination:
(dollars in thousands)	Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction		Term Extension & Interest Rate Reduction		Principal Forgiveness & Term Extension		Principal Forgiveness, Term Extension, & Interest Rate Reduction		Payment Delay & Term Extension		Total Class of Financing Receivable
Three Months Ended September 30, 2023
Commercial and industrial	$	—	$	—	$	2,062	$	—	$	—	$	—	$	—	$	—	0.19	%
CRE - Other	—		—		1,368		—		—		—		—		—		0.10	%
Total	$	—	$	—	$	3,430	$	—	$	—	$	—	$	—	$	—
Nine Months Ended September 30, 2023
Agricultural	$	—	$	13	$	—	$	—	$	—	$	—	$	—	$	—	0.01	%
Commercial and industrial	—		264		2,820		—		103		302		—		188		0.34	%
CRE - Farmland	—		—		1,823		—		—		—		—		—		1.00	%
CRE - Other	—		158		1,368		—		—		—		—		—		0.12	%
RRE - One- to four- family first liens	—		—		49		—		—		—		—		—		0.01	%
Total	$	—	$	435	$	6,060	$	—	$	103	$	302	$	—	$	188

The Company has no additional commitment to lend amounts to the borrowers included in the previous table as of September 30, 2023. For the three and nine months ended September 30, 2023, the Company had 8 modified loans totaling $0.3 million and 12 modified loans totaling $1.1 million, respectively, to borrowers experiencing financial difficulty that redefaulted within 12 months subsequent to the modification.

The following table presents the performance as of September 30, 2023 of loans that were modified while the borrower was experiencing financial difficulty at the time of modification in the last 12 months:

	As of September 30, 2023
(in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
Agricultural	$	—	$	—	$	13	$	—	$	13
Commercial and industrial	3,490		188		—		—		3,678
CRE - Farmland	1,823		—		—		—		1,823
CRE - Other	1,525		—		—		—		1,525
RRE - One- to four- family first liens	—		49		—		—		49
Total	$	6,838	$	237	$	13	$	—	$	7,088

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three and nine months ended September 30, 2023:

(dollars in thousands)	Principal Forgiveness		Weighted Average Interest Rate Reduction		Weighted Average Term Extension (Months)
Three Months Ended September 30, 2023
Commercial and industrial	$	—	—	%	9.9
CRE - Other	18		—	%	5.3
Total	$	18	—	%	8.1
Nine Months Ended September 30, 2023
Commercial and industrial	$	63	1.25	%	9.2
CRE - Farmland	—		—	%	0.9
CRE - Other	18		—	%	5.3
RRE - One- to four- family first liens	—		—	%	3.9
Total	$	81	1.25	%	6.1

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Derivatives, Hedging Activities and Balance Sheet Offsetting

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives, Hedging Activities and Balance Sheet Offsetting

Derivatives, Hedging Activities and Balance Sheet Offsetting

The following table presents the total notional amounts and gross fair values of the Company’s derivatives as of the dates indicated. The derivative asset and liability balances are presented on a gross basis, prior to the application of master netting agreements, as included in other assets and other liabilities, respectively, on the consolidated balance sheets. The fair values of the Company's derivative instrument assets and liabilities are summarized as follows:

	As of September 30, 2023						As of December 31, 2022
	Notional Amount		Fair Value				Notional Amount		Fair Value
(in thousands)			Assets		Liabilities				Assets		Liabilities
Designated as hedging instruments:
Fair value hedges:
Interest rate swaps - loans	$	41,362	$	3,262	$	50	$	24,018	$	2,556	$	—
Interest rate swaps - securities	100,000		449		—		—		—		—
Cash flow hedges
Interest rate swaps	200,000		4,289		—		—		—		—
Total	$	341,362	$	8,000	$	50	$	24,018	$	2,556	$	—
Not designated as hedging instruments:
Interest rate swaps	$	364,153	$	23,408	$	23,438	$	331,197	$	21,084	$	21,087
RPAs - protection sold	186		—		—		—		—		—
RPAs - protection purchased	24,701		—		—		9,421		—		—
Interest rate lock commitments	1,474		18		—		1,372		7		—
Interest rate forward loan sales contracts	3,382		22		—		1,400		8		—
Total	$	393,896	$	23,448	$	23,438	$	343,390	$	21,099	$	21,087

Derivatives Designated as Hedging Instruments

The Company uses derivative instruments to hedge its exposure to economic risks. Certain hedging relationships are formally designated and qualify for hedge accounting under GAAP as fair value or cash flow hedges.

Fair Value Hedges - Derivatives are designated as fair value hedges to limit the Company's exposure to changes in the fair value of assets or liabilities due to movements in interest rates. The Company entered into pay-fixed receive-floating interest rate swaps to manage its exposure to changes in fair value in certain fixed-rate assets. The gain or loss on the loan fair value hedge derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income. The change in the fair value of the available for sale securities attributable to changes in the hedged risk is recorded in accumulated other comprehensive income and subsequently reclassified into interest income, as applicable, in the same period(s) to offset the changes in the fair value of the swap, which is also recognized in interest income.

Cash Flow Hedges - Derivatives are designated as cash flow hedges in order to minimize the variability in cash flows of earning assets or forecasted transactions caused by movement in interest rates. The Company entered into pay-fixed receive-variable interest rate swaps to hedge against adverse fluctuations in interest rates by reducing exposure to variability in cash

flows relating to interest payments on the Company's variable rate debt. The gain or loss on the derivatives is recorded in accumulated other comprehensive income and subsequently reclassified into interest expense, as applicable, in the same period(s) during which the hedged transaction affects earnings. During the next 12 months, the Company estimates that an additional $3.0 million of income will be reclassified into interest expense.

The table below presents the effect of cash flow hedge accounting on AOCI for the three and nine months ended September 30, 2023 and 2022:

	Amount of Gain (Loss) Recognized in AOCI on Derivative				Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
	Three Months Ended September 30,					Three Months Ended September 30,
(in thousands)	2023		2022			2023		2022
Interest rate swaps	$	1,829	$	—	Interest Expense	$	761	$	—
	Nine Months Ended September 30,					Nine Months Ended September 30,
(in thousands)	2023		2022			2023		2022
Interest rate swaps	$	5,288	$	—	Interest Expense	$	999	$	—

The table below presents the effect of the Company’s derivative financial instruments designated as hedging instruments on the consolidated statements of income for the periods indicated:

	Location and Amount of Gain or Loss Recognized in Income on Hedging Relationships
	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
	2023				2022				2023				2022
(in thousands)	Interest Income		Other Income		Interest Income		Other Income		Interest Income		Other Income		Interest Income		Other Income
Income and expense included in the consolidated statements of income related to the effects of fair value or cash flow hedges are recorded	$	317	$	—	$	24	$	—	$	666	$	—	$	(147)	$	—
The effects of fair value and cash flow hedging:
Gain (loss) on fair value hedging relationships in subtopic 815-20:
Interest contracts - loans:
Hedged items	(747)		—		(1,149)		—		(212)		—		(3,665)		—
Derivative designated as hedging instruments	964		—		1,175		—		1,219		—		3,519		—
Interest contracts - securities:
Hedged items	(454)		—		—		—		(454)		—		—		—
Derivative designated as hedging instruments	560		—		—		—		560		—		—		—
Income statement effect of cash flow hedging relationships in subtopic 815-20:
Interest contracts:
Amount reclassified from AOCI into income	761		—		—		—		999		—		—		—

As of September 30, 2023, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges:

Line Item in the Balance Sheet in Which the Hedged Item is Included	Carrying Amount of the Hedged Assets		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset
(in thousands)
Loans	$	38,187	$	(3,211)
Securities	$	99,546	$	(454)

Derivatives Not Designated as Hedging Instruments

Interest Rate Swaps - The Company periodically enters into commercial loan interest rate swap agreements in order to provide commercial loan customers with the ability to convert from variable to fixed interest rates. These derivative contracts relate to transactions in which the Company enters into an interest rate swap with a customer, while simultaneously entering into an offsetting interest rate swap with an institutional counterparty.

Credit Risk Participation Agreements -The Company enters into RPAs to manage the credit exposure on interest rate contracts associated with a syndicated loan or participation agreement. The Company may enter into protection purchased RPAs with institutional counterparties to decrease or increase its exposure to a borrower. Under the RPA, the Company will receive or make payment if a borrower defaults on the related interest rate contract. The notional amount of the RPAs reflects the Company’s pro-rata share of the derivative instrument.

Interest Rate Forward Loan Sales Contracts & Interest Rate Lock Commitments - The Company enters into forward delivery contracts to sell residential mortgage loans at specific prices and dates in order to hedge the interest rate risk in its portfolio of mortgage loans held for sale and its residential mortgage interest rate lock commitments.

The following table presents the net gains (losses) recognized on the consolidated statements of income related to the derivatives not designated as hedging instruments for the periods indicated:

	Location in the Consolidated Statements of Income	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands)		2023		2022		2023		2022
Interest rate swaps	Other income	$	(27)	$	2	$	(27)	$	10
RPAs	Other income	1		—		70		1
Interest rate lock commitments	Loan revenue	(51)		(149)		11		(367)
Interest rate forward loan sales contracts	Loan revenue	(5)		91		14		63
Total		$	(82)	$	(56)	$	68	$	(293)

Offsetting of Derivatives

The Company has entered into agreements with certain counterparty financial institutions, which include master netting agreements. However, the Company has elected to account for all derivatives with counterparty institutions on a gross basis. The Company manages the risk of default by its borrower counterparties through its normal loan underwriting and credit monitoring policies and procedures.

The table below presents gross derivatives and the respective collateral received or pledged in the form of other financial instruments as of September 30, 2023 and December 31, 2022, which are generally marketable securities and/or cash. The collateral amounts in the table below are limited to the outstanding balances of the related asset or liability (after netting is applied); thus instances of over-collateralization are not shown. Further, the net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheets.

							Gross Amounts Not Offset in the Balance Sheet
(in thousands)	Gross Amounts Recognized		Gross Amounts Offset in the Balance Sheet		Net Amounts presented in the Balance Sheet		Financial Instruments		Cash Collateral Received / Paid		Net Assets /Liabilities
As of September 30, 2023
Asset Derivatives	$	31,448	$	—	$	31,448	$	—	$	22,762	$	8,686
Liability Derivatives	23,488		—		23,488		—		9,420		14,068
As of December 31, 2022
Asset Derivatives	$	23,655	$	—	$	23,655	$	—	$	18,858	$	4,797
Liability Derivatives	21,087		—		21,087		—		3,460		17,627

Credit-risk-related Contingent Features

The Company has an unsecured federal funds line with its institutional derivative counterparties. The Company has an agreement with its institutional derivative counterparties that contains a provision under which if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has an agreement with its derivative counterparties that contains a provision under which the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. As of September 30, 2023, fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $596 thousand.

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Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible AssetsThe carrying amount of goodwill was $62.5 million as of September 30, 2023 and as of December 31, 2022.

The following table presents the gross carrying amount, accumulated amortization, and net carrying amount of other intangible assets as of the dates indicated:

	As of September 30, 2023						As of December 31, 2022
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangible	$	58,245	$	(40,171)	$	18,074	$	58,245	$	(35,822)	$	22,423
Customer relationship intangible	5,265		(4,905)		360		5,265		(4,490)		775
Other	2,700		(2,664)		36		2,700		(2,623)		77
	$	66,210	$	(47,740)	$	18,470	$	66,210	$	(42,935)	$	23,275
Indefinite-lived trade name intangible	$	7,040					$	7,040

The following table provides the estimated future amortization expense for the remaining three months of the year ending December 31, 2023 and the succeeding annual periods:

(in thousands)	Core Deposit Intangible		Customer Relationship Intangible		Other		Total
2023	$	1,328	$	103	$	10	$	1,441
2024	4,705		239		24		4,968
2025	3,751		18		2		3,771
2026	2,797		—		—		2,797
2027	1,843		—		—		1,843
Thereafter	3,650		—		—		3,650
Total	$	18,074	$	360	$	36	$	18,470

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Other Assets

9 Months Ended

Sep. 30, 2023

Other Assets [Abstract]

Other Assets

Other Assets

The components of the Company's other assets as of September 30, 2023 and December 31, 2022 were as follows:

(in thousands)	September 30, 2023		December 31, 2022
Bank-owned life insurance	$	97,383	$	95,539
Interest receivable	30,095		27,090
FHLB stock	14,869		19,248
Mortgage servicing rights	13,438		13,421
Operating lease right-of-use assets, net	2,593		2,492
Federal and state income taxes, current	—		2,366
Federal and state income taxes, deferred	37,641		39,071
Derivative assets	31,448		23,655
Other receivables/assets	16,569		13,635
	$	244,036	$	236,517

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Deposits

9 Months Ended

Sep. 30, 2023

Deposits [Abstract]

Deposits

Deposits

The following table presents the composition of our deposits as of the dates indicated:

(in thousands)	September 30, 2023		December 31, 2022
Noninterest bearing deposits	$	924,213	$	1,053,450
Interest checking deposits	1,334,481		1,624,278
Money market deposits	1,127,287		937,340
Savings deposits	619,805		664,169
Time deposits of $250 and under	923,709		559,466
Time deposits over $250	433,829		630,239
Total deposits	$	5,363,324	$	5,468,942

The Company had $10.9 million and $4.3 million in reciprocal time deposits as of September 30, 2023 and December 31, 2022, respectively. Included in money market deposits at September 30, 2023 and December 31, 2022 were $149.6 million and $40.0 million, respectively, of interest-bearing reciprocal deposits. Included in noninterest bearing deposits at September 30, 2023 were $70.1 million of noninterest-bearing reciprocal deposits, with no noninterest-bearing reciprocal deposits at December 31, 2022. These reciprocal deposits are part of the IntraFi Network Deposits program, which is used by financial institutions to spread deposits that exceed the FDIC insurance coverage limits out to numerous institutions in order to provide insurance

coverage for all participating deposits. In addition, the Company had $220.1 million as of September 30, 2023 and $126.8 million as of December 31, 2022 of brokered deposits.

As of September 30, 2023 and December 31, 2022, the Company had public entity deposits that were collateralized by investment securities of $221.4 million and $387.8 million, respectively.

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Short-Term Borrowings

9 Months Ended

Sep. 30, 2023

Short-Term Debt [Abstract]

Short-Term Borrowings

Short-Term Borrowings

The following table summarizes our short-term borrowings as of the dates indicated:

	September 30, 2023				December 31, 2022
(in thousands)	Weighted Average Rate		Balance		Weighted Average Rate		Balance
Securities sold under agreements to repurchase	0.73	%	$	9,256	1.32	%	$	156,373
Federal Home Loan Bank advances	5.53		139,700		4.48		235,500
Federal Reserve Bank borrowings	5.03		225,000		—		—
Total	5.11	%	$	373,956	3.22	%	$	391,873

Securities Sold Under an Agreement to Repurchase - Securities sold under agreements to repurchase are agreements in which the Company acquires funds by selling assets to another party under a simultaneous agreement to repurchase the same assets at a specified price and date. The Company enters into repurchase agreements and also offers a demand deposit account product to customers that sweeps their balances in excess of an agreed upon target amount into overnight repurchase agreements. All securities sold under agreements to repurchase are recorded on the face of the balance sheet.

Federal Home Loan Bank Advances - The Bank has a secured line of credit with the FHLBDM. Advances from the FHLBDM are collateralized primarily by one- to four-family residential, commercial and agricultural real estate first mortgages equal to various percentages of the total outstanding notes. See Note 4. Loans Receivable and the Allowance for Credit Losses of the notes to the consolidated financial statements.

Federal Funds Purchased - The Bank has unsecured federal funds lines totaling $155.0 million from multiple correspondent banking relationships. There were no borrowings from such lines at either September 30, 2023 or December 31, 2022.

Other - At September 30, 2023 and December 31, 2022, the Company had no Federal Reserve Discount Window borrowings, while the financing capacity was $515.4 million as of September 30, 2023 and $105.6 million as of December 31, 2022. At September 30, 2023, the Company had $225.0 million Bank Term Funding Program borrowings, with additional borrowing capacity of $224.3 million as of September 30, 2023. As of September 30, 2023 and December 31, 2022, the Bank had municipal securities with a market value of $880.5 million and $115.2 million, respectively, pledged to the Federal Reserve Bank of Chicago to secure potential borrowings.

The Company has a credit agreement with a correspondent bank with a revolving commitment of $25.0 million. The credit agreement was amended on September 19, 2023 such that the revolving commitment matures on September 30, 2024, with no updates made to the fee structure or the interest rate. Fees are paid on the average daily unused revolving commitment in the amount of 0.30% per annum. Interest is payable at a rate equal to the monthly reset term SOFR rate plus 1.55%. The Company had no balance outstanding under this revolving credit facility as of both September 30, 2023 and December 31, 2022.

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Long-Term Debt

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Junior Subordinated Notes Issued to Capital Trusts

The table below summarizes the terms of each issuance of junior subordinated notes outstanding as of the dates indicated:

(in thousands)	Face Value		Book Value		Interest Rate	Rate		Maturity Date	Callable Date
September 30, 2023
ATBancorp Statutory Trust I	$	7,732	$	6,959	Three-month CME Term SOFR + 0.26% Spread + 1.68% Margin	7.35	%	06/15/2036	06/15/2011
ATBancorp Statutory Trust II	12,372		11,018		Three-month CME Term SOFR + 0.26% Spread + 1.65% Margin	7.32	%	09/15/2037	06/15/2012
Barron Investment Capital Trust I	2,062		1,854		Three-month CME Term SOFR + 0.26% Spread + 2.15% Margin	7.81	%	09/23/2036	09/23/2011
Central Bancshares Capital Trust II	7,217		6,954		Three-month CME Term SOFR + 0.26% Spread + 3.50% Margin	9.17	%	03/15/2038	03/15/2013
MidWestOne Statutory Trust II	15,464		15,464		Three-month CME Term SOFR + 0.26% Spread + 1.59% Margin	7.26	%	12/15/2037	12/15/2012
Total	$	44,847	$	42,249
December 31, 2022
ATBancorp Statutory Trust I	$	7,732	$	6,928	Three-month LIBOR + 1.68%	6.45	%	06/15/2036	06/15/2011
ATBancorp Statutory Trust II	12,372		10,969		Three-month LIBOR + 1.65%	6.42	%	09/15/2037	06/15/2012
Barron Investment Capital Trust I	2,062		1,832		Three-month LIBOR + 2.15%	6.88	%	09/23/2036	09/23/2011
Central Bancshares Capital Trust II	7,217		6,923		Three-month LIBOR + 3.50%	8.27	%	03/15/2038	03/15/2013
MidWestOne Statutory Trust II	15,464		15,464		Three-month LIBOR + 1.59%	6.36	%	12/15/2037	12/15/2012
Total	$	44,847	$	42,116

The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated notes at the stated maturity date or upon redemption of the junior subordinated notes. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated notes. The Company’s obligation under the junior subordinated notes and other relevant trust agreements, in aggregate, constitutes a full and unconditional guarantee by the Company of each trust’s obligations under the trust preferred securities issued by each trust. The Company has the right to defer payment of interest on the junior subordinated notes and, therefore, distributions on the trust preferred securities, for up to five years, but not beyond the stated maturity date in the table above. During any such deferral period the Company may not pay cash dividends on its stock and generally may not repurchase its stock.

Subordinated Debentures

On July 28, 2020, the Company completed the private placement offering of $65.0 million of its subordinated notes, of which $63.75 million have been exchanged for subordinated notes registered under the Securities Act of 1933. The 5.75% fixed-to-floating rate subordinated notes are due July 30, 2030. At September 30, 2023, 100% of the subordinated notes qualified as Tier 2 capital. Per applicable Federal Reserve rules and regulations, the amount of the subordinated notes qualifying as Tier 2 regulatory capital will be phased-out by 20% of the amount of the subordinated notes in each of the five years beginning on the fifth anniversary preceding the maturity date of the subordinated notes.

Other Long-Term Debt

Other long-term borrowings were as follows as of September 30, 2023 and December 31, 2022:

	September 30, 2023				December 31, 2022
(in thousands)	Weighted Average Rate		Balance		Weighted Average Rate		Balance
Finance lease payable	8.89	%	$	652	8.89	%	$	787
FHLB borrowings	3.11		6,270		2.91		17,301
Note payable to unaffiliated bank	6.88		11,250		5.67		15,000
Total	5.65	%	$	18,172	4.30	%	$	33,088

On June 7, 2022, the Company entered into an unsecured note payable with a correspondent bank with a maturity date of June 30, 2027. Payments of principal and interest are payable quarterly, and began on September 30, 2022. Interest is payable at the monthly reset term SOFR plus 1.55%.

As a member of the FHLBDM, the Bank may borrow funds from the FHLB in amounts up to 45% of the Bank’s total assets, provided the Bank is able to pledge an adequate amount of qualified assets to secure the borrowings. Advances from the FHLB are collateralized primarily by one- to four-family residential, commercial and agricultural real estate first mortgages equal to various percentages of the total outstanding notes. See Note 4. Loans Receivable and the Allowance for Credit Losses of the notes to the unaudited consolidated financial statements.

As of September 30, 2023, FHLB borrowings were as follows:

(in thousands)	Weighted Average Rate		Amount
Due in 2024	3.11	%	6,250
Valuation adjustment from acquisition accounting			20
Total			$	6,270

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Earnings per Share

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Earnings per Share

Earnings per Share

The following table present the computation of basic and diluted earnings per common share for the periods indicated:

	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands, except per share amounts)	2023		2022		2023		2022
Basic Earnings Per Share:
Net income	$	9,138	$	18,317	$	18,129	$	44,833
Weighted average shares outstanding	15,688,502		15,623,498		15,672,989		15,657,917
Basic earnings per common share	$	0.58	$	1.17	$	1.16	$	2.86
Diluted Earnings Per Share:
Net income	$	9,138	$	18,317	$	18,129	$	44,833
Weighted average shares outstanding, including all dilutive potential shares	15,711,137		15,654,443		15,696,071		15,686,098
Diluted earnings per common share	$	0.58	$	1.17	$	1.15	$	2.86

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Regulatory Capital Requirements and Restrictions on Subsidiary Cash

9 Months Ended

Sep. 30, 2023

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Regulatory Capital Requirements and Restrictions on Subsidiary Cash

Regulatory Capital Requirements and Restrictions on Subsidiary Cash

Regulatory Capital and Reserve Requirement - The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's consolidated financial statements. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

As of September 30, 2023 and December 31, 2022, the Bank was not required to maintain reserve balances in cash on hand or on deposit with Federal Reserve Banks, and therefore the total amount held in reserve for each of these periods was zero dollars.

A comparison of the Company's and the Bank's capital with the corresponding minimum regulatory requirements in effect at September 30, 2023 and December 31, 2022, is presented below:

	Actual		For Capital Adequacy Purposes With Capital Conservation Buffer(1)		To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount	Ratio	Amount	Ratio	Amount	Ratio
At September 30, 2023
Consolidated:
Total capital/risk weighted assets(1)	$668,678	12.45%	$564,137	10.50%	N/A	N/A
Tier 1 capital/risk weighted assets(1)	553,807	10.31	456,682	8.50	N/A	N/A
Common equity tier 1 capital/risk weighted assets(1)	511,558	9.52	376,091	7.00	N/A	N/A
Tier 1 leverage capital/average assets	553,807	8.58	258,071	4.00	N/A	N/A
MidWestOne Bank:
Total capital/risk weighted assets(1)	$662,831	12.36%	$563,166	10.50%	$536,348	10.00%
Tier 1 capital/risk weighted assets(1)	612,960	11.43	455,896	8.50	429,079	8.00
Common equity tier 1 capital/risk weighted assets(1)	612,960	11.43	375,444	7.00	348,626	6.50
Tier 1 leverage capital/average assets	612,960	9.51	257,931	4.00	322,414	5.00
At December 31, 2022
Consolidated:
Total capital/risk weighted assets(1)	$653,380	12.07%	$568,452	10.50%	N/A	N/A
Tier 1 capital/risk weighted assets(1)	544,300	10.05	460,175	8.50	N/A	N/A
Common equity tier 1 capital/risk weighted assets(1)	502,184	9.28	378,968	7.00	N/A	N/A
Tier 1 leverage capital/average assets	544,300	8.35	260,891	4.00	N/A	N/A
MidWestOne Bank:
Total capital/risk weighted assets(1)	$654,297	12.10%	$567,684	10.50%	$540,652	10.00%
Tier 1 capital/risk weighted assets(1)	610,217	11.29	459,554	8.50	432,522	8.00
Common equity tier 1 capital/risk weighted assets(1)	610,217	11.29	378,456	7.00	351,424	6.50
Tier 1 leverage capital/average assets	610,217	9.36	260,776	4.00	325,970	5.00

(1) Includes a capital conservation buffer of 2.50%.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Credit-related financial instruments - The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, commitments to sell loans, and standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheets.

The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The following table summarizes the Bank’s commitments as of the dates indicated:

	September 30, 2023		December 31, 2022
(in thousands)
Commitments to extend credit	$	1,242,267	$	1,190,607
Commitments to sell loans	2,528		612
Standby letters of credit	9,078		18,398
Total	$	1,253,873	$	1,209,617

The Bank’s exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the party. Collateral held varies, but may include accounts receivable, crops, livestock, inventory, property and equipment, residential real estate and income-producing commercial properties.

Commitments to sell loans are agreements to sell loans held for sale to third parties at an agreed upon price.

Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements and, generally, have terms of one year or

less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank holds collateral, which may include accounts receivable, inventory, property, equipment and income-producing properties, that support those commitments, if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Bank would be required to fund the commitment. The maximum potential amount of future payments the Bank could be required to make is represented by the contractual amount shown in the summary above. If the commitment is funded, the Bank would be entitled to seek recovery from the customer.

Liability for Off-Balance Sheet Credit Losses - The Company records a liability for off-balance sheet credit losses through a charge to credit loss expense (or a reversal of credit loss expense) on the Company's consolidated statements of income and other liabilities on the Company's consolidated balance sheets. At September 30, 2023 and December 31, 2022, the liability for off-balance-sheet credit losses totaled $4.8 million. For the nine months ended September 30, 2023, no credit loss expense was recorded, while a credit loss expense of $0.8 million was recorded for the nine months ended September 30, 2022.

Litigation - In the normal course of business, the Company and its subsidiaries have been named, from time to time, as defendants in various legal actions. Certain of the actual or threatened legal actions may include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. Management, after consulting with legal counsel, is of the opinion that the ultimate liability, if any, resulting from these pending or threatened actions and proceedings will not have a material effect on the financial statements of the Company.

Concentrations of credit risk - Substantially all of the Bank’s loans, commitments to extend credit and standby letters of credit have been granted to customers in the Bank’s market areas. Although the loan portfolio of the Bank is diversified, approximately 65% of the loans are real estate loans, excluding farmland, and approximately 7% are agriculturally related. The concentrations of credit by type of loan are set forth in Note 4. Loans Receivable and the Allowance for Credit Losses. Commitments to extend credit are primarily related to commercial loans and home equity loans. Standby letters of credit were granted primarily to commercial borrowers. Investments in securities issued by state and political subdivisions involve certain governmental entities within Iowa, California, and Minnesota. The carrying value of investment securities of Iowa, California and Minnesota political subdivisions totaled 13%, 11%, and 10%, respectively, as of September 30, 2023.

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Fair Value of Financial Instruments and Fair Value Measurements

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments and Fair Value Measurements

Fair Value of Financial Instruments and Fair Value Measurements

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  There are three levels of inputs that may be used to measure fair values:

•Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

•Level 2 – Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

•Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

For additional information regarding the valuation methodologies used to measure the Company's assets recorded at fair value, and for estimating fair value for financial instruments not recorded at fair value, see Note 1. Nature of Business and Significant Accounting Policies and Note 20. Estimated Fair Value of Financial Instruments and Fair Value Measurements to the consolidated financial statements in the Company's 2022 Annual Report on Form 10-K, filed with the SEC on March 13, 2023.

The Company uses fair value to measure certain assets and liabilities on a recurring basis, primarily available for sale debt securities, derivatives and mortgage servicing rights. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period, and such measurements are therefore considered "nonrecurring" for purposes of disclosing the Company's fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for collateral dependent individually analyzed loans and other real estate owned.

Recurring Basis

The following tables summarize assets and liabilities measured at fair value on a recurring basis at the dates indicated, by level within the fair value hierarchy:

	Fair Value Measurement at September 30, 2023 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Assets:
Available for sale debt securities:
State and political subdivisions	$	162,468	$	—	$	162,468	$	—
Mortgage-backed securities	5,327		—		5,327		—
Collateralized loan obligations	52,453		—		52,453		—
Collateralized mortgage obligations	131,923		—		131,923		—
Corporate debt securities	520,599		—		520,599		—
Derivative assets	31,448		—		31,430		18
Mortgage servicing rights	13,438		—		13,438		—
Liabilities:
Derivative liabilities	$	23,488	$	—	$	23,488	$	—

	Fair Value Measurement at December 31, 2022 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Assets:
Debt securities available for sale:
U.S. Government agencies and corporations	$	7,345	$	—	$	7,345	$	—
State and political subdivisions	285,356		—		285,356		—
Mortgage-backed securities	5,944		—		5,944		—
Collateralized mortgage obligations	147,193		—		147,193		—
Corporate debt securities	707,709		—		707,709		—
Derivative assets	23,655		—		23,648		7
Mortgage servicing rights	13,421		—		13,421		—
Liabilities:
Derivative liabilities	$	21,087	$	—	$	21,087	$	—

There were no transfers of assets between Level 3 and other levels of the fair value hierarchy during the nine months ended September 30, 2023 or the year ended December 31, 2022. Changes in the fair value of available for sale debt securities, including the changes attributable to the hedged risk, are included in other comprehensive income.

The following table presents the valuation technique, significant unobservable inputs, and quantitative information about the unobservable inputs used for fair value measurements of the financial instruments held by the Company and categorized within Level 3 of the fair value hierarchy at the dates indicated:

	Fair Value at
(dollars in thousands)	September 30, 2023		December 31, 2022		Valuation Techniques(s)	Unobservable Input	Range of Inputs			Weighted Average
Interest rate lock commitments	$	18	$	7	Quoted or published market prices of similar instruments, adjusted for factors such as pull-through rate assumptions	Pull-through rate	70%	-	100%	85%

Nonrecurring Basis

The following table presents assets measured at fair value on a nonrecurring basis at the dates indicated:

	Fair Value Measurement at September 30, 2023 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Collateral dependent individually analyzed loans	$	8,479	$	—	$	—	$	8,479

	Fair Value Measurement at December 31, 2022 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Collateral dependent individually analyzed loans	$	3,159	$	—	$	—	$	3,159
Foreclosed assets, net	103		—		—		103

The following table presents the valuation technique(s), unobservable inputs, and quantitative information about the unobservable inputs used for fair value measurements of the financial instruments held by the Company and categorized within Level 3 of the fair value hierarchy at the dates indicated:

	Fair Value at
(dollars in thousands)	September 30, 2023		December 31, 2022		Valuation Techniques(s)	Unobservable Input	Range of Inputs			Weighted Average
Collateral dependent individually analyzed loans	$	8,479	$	3,159	Fair value of collateral	Valuation adjustments	—%	-	55%	12%
Foreclosed assets, net	$	—	$	103	Fair value of collateral	Valuation adjustments	N/A(1)
(1) Quantitative disclosures are not provided for foreclosed assets, net because there were no adjustments made to the appraisal values or stated values during the period.

Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values.

Carrying Amount and Estimated Fair Value of Financial Instruments

The carrying amount and estimated fair value of financial instruments at September 30, 2023 and December 31, 2022 were as follows:

	September 30, 2023
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	74,788	$	74,788	$	74,788	$	—	$	—
Debt securities available for sale	872,770		872,770		—		872,770		—
Debt securities held to maturity	1,085,751		848,363		—		848,363		—
Loans held for sale	2,528		2,564		—		2,564		—
Loans held for investment, net	4,014,369		3,873,341		—		—		3,873,341
Interest receivable	30,095		30,095		—		30,095		—
FHLB stock	14,869		14,869		—		14,869		—
Derivative assets	31,448		31,448		—		31,430		18
Financial liabilities:
Noninterest bearing deposits	924,213		924,213		924,213		—		—
Interest bearing deposits	4,439,111		4,424,216		3,081,572		1,342,644		—
Short-term borrowings	373,956		373,956		373,956		—		—
Finance leases payable	652		652		—		652		—
FHLB borrowings	6,270		6,269		—		6,269		—
Junior subordinated notes issued to capital trusts	42,249		37,900		—		37,900		—
Subordinated debentures	64,105		62,809		—		62,809		—
Other long-term debt	11,250		11,250		—		11,250		—
Derivative liabilities	23,488		23,488		—		23,488		—

	December 31, 2022
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	86,435	$	86,435	$	86,435	$	—	$	—
Debt securities available for sale	1,153,547		1,153,547		—		1,153,547		—
Debt securities held to maturity	1,129,421		924,894		—		924,894		—
Loans held for sale	612		622		—		622		—
Loans held for investment, net	3,791,324		3,702,527		—		—		3,702,527
Interest receivable	27,090		27,090		—		27,090		—
FHLB stock	19,248		19,248		—		19,248		—
Derivative assets	23,655		23,655		—		23,648		7
Financial liabilities:
Noninterest bearing deposits	1,053,450		1,053,450		1,053,450		—		—
Interest bearing deposits	4,415,492		4,393,315		3,225,787		1,167,528		—
Short-term borrowings	391,873		391,873		391,873		—		—
Finance leases payable	787		787		—		787		—
FHLB borrowings	17,301		17,032		—		17,032		—
Junior subordinated notes issued to capital trusts	42,116		39,023		—		39,023		—
Subordinated debentures	64,006		64,004		—		64,004		—
Other long-term debt	15,000		15,000		—		15,000		—
Derivative liabilities	21,087		21,087		—		21,087		—

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Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Leases

The Company's lease commitments consist primarily of real estate property for banking offices and office space with terms extending through 2045. Substantially all of our leases are classified as operating leases, with the Company only holding one existing finance lease for a banking office location with a lease term through 2025.

(in thousands)	Classification	September 30, 2023			December 31, 2022
Operating lease right-of-use assets	Other assets	$	2,593		$	2,492
Finance lease right-of-use asset	Premises and equipment, net	279			350
Total right-of-use assets		$	2,872		$	2,842
Operating lease liability	Other liabilities	$	3,365		$	3,359
Finance lease liability	Long-term debt	652			787
Total lease liabilities		$	4,017		$	4,146
Weighted-average remaining lease term:	Operating leases	9.78 years			9.23 years
	Finance lease	2.92 years			3.67 years
Weighted-average discount rate:	Operating leases	4.33		%	4.23		%
	Finance lease	8.89		%	8.89		%

The following table represents lease costs and other lease information. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2023		2022		2023		2022
Lease Costs
Operating lease cost	$	297	$	290	$	885	$	874
Variable lease cost	4		7		15		49
Interest on lease liabilities(1)	15		19		47		58
Amortization of right-of-use assets	24		24		72		72
Net lease cost	$	340	$	340	$	1,019	$	1,053
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	602	$	553	$	1,799	$	1,689
Operating cash flows from finance lease	15		19		47		58
Finance cash flows from finance lease	46		41		135		121
Supplemental non-cash information on lease liabilities:
Right-of-use assets obtained in exchange for new operating lease liabilities	526		599		857		638

(1)Included in long-term debt interest expense in the Company’s consolidated statements of income. All other lease costs in this table are included in occupancy expense of premises, net.

Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more for the remaining three-months ending December 31, 2023 and the succeeding annual periods were as follows:

(in thousands)	Finance Leases		Operating Leases
December 31, 2023	$	62	$	318
December 31, 2024	250		1,047
December 31, 2025	254		568
December 31, 2026	172		430
December 31, 2027	—		302
Thereafter	—		1,738
Total undiscounted lease payment	$	738	$	4,403
Amounts representing interest	(86)		(1,038)
Lease liability	$	652	$	3,365

Leases

Leases

The Company's lease commitments consist primarily of real estate property for banking offices and office space with terms extending through 2045. Substantially all of our leases are classified as operating leases, with the Company only holding one existing finance lease for a banking office location with a lease term through 2025.

(in thousands)	Classification	September 30, 2023			December 31, 2022
Operating lease right-of-use assets	Other assets	$	2,593		$	2,492
Finance lease right-of-use asset	Premises and equipment, net	279			350
Total right-of-use assets		$	2,872		$	2,842
Operating lease liability	Other liabilities	$	3,365		$	3,359
Finance lease liability	Long-term debt	652			787
Total lease liabilities		$	4,017		$	4,146
Weighted-average remaining lease term:	Operating leases	9.78 years			9.23 years
	Finance lease	2.92 years			3.67 years
Weighted-average discount rate:	Operating leases	4.33		%	4.23		%
	Finance lease	8.89		%	8.89		%

The following table represents lease costs and other lease information. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2023		2022		2023		2022
Lease Costs
Operating lease cost	$	297	$	290	$	885	$	874
Variable lease cost	4		7		15		49
Interest on lease liabilities(1)	15		19		47		58
Amortization of right-of-use assets	24		24		72		72
Net lease cost	$	340	$	340	$	1,019	$	1,053
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	602	$	553	$	1,799	$	1,689
Operating cash flows from finance lease	15		19		47		58
Finance cash flows from finance lease	46		41		135		121
Supplemental non-cash information on lease liabilities:
Right-of-use assets obtained in exchange for new operating lease liabilities	526		599		857		638

(1)Included in long-term debt interest expense in the Company’s consolidated statements of income. All other lease costs in this table are included in occupancy expense of premises, net.

Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more for the remaining three-months ending December 31, 2023 and the succeeding annual periods were as follows:

(in thousands)	Finance Leases		Operating Leases
December 31, 2023	$	62	$	318
December 31, 2024	250		1,047
December 31, 2025	254		568
December 31, 2026	172		430
December 31, 2027	—		302
Thereafter	—		1,738
Total undiscounted lease payment	$	738	$	4,403
Amounts representing interest	(86)		(1,038)
Lease liability	$	652	$	3,365

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Subsequent Events	9 Months Ended
	Sep. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsThe Company has evaluated events that have occurred subsequent to September 30, 2023 and has concluded there are no other subsequent events that would require recognition in the accompanying consolidated financial statements.On October 24, 2023, the board of directors of the Company declared a cash dividend of $0.2425 per share payable on December 15, 2023 to shareholders of record as of the close of business on December 1, 2023.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net income	$ 9,138	$ 18,317	$ 18,129	$ 44,833

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Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Nature of Business and Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying interim condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X of the Securities Exchange Act of 1934. Accordingly, certain disclosures accompanying annual consolidated financial statements are omitted. In the opinion of management, all significant intercompany accounts and transactions have been eliminated and adjustments, consisting solely of normal recurring accruals and considered necessary for the fair presentation of financial statements for the interim periods, have been included. The current period's results of operations are not necessarily indicative of the results that ultimately may be achieved for the year. The interim condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2022, filed with the SEC on March 13, 2023.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect: (1) the reported amounts of assets and liabilities, (2) the disclosure of contingent assets and liabilities at the date of the financial statements, and (3) the reported amounts of revenues and expenses during the reporting period. These estimates are based on information available to management at the time the estimates are made. Actual results could differ from those estimates. The results for the three and nine months ended September 30, 2023 may not be indicative of results for the year ending December 31, 2023, or for any other period.

All significant accounting policies followed in the preparation of the quarterly financial statements are disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 13, 2023.

Segment Reporting

Segment Reporting

The Company’s activities are considered to be one reportable segment for financial reporting purposes. The Company is engaged in the business of commercial and retail banking and trust and investment management services with operations throughout central and eastern Iowa, the Minneapolis/St. Paul metropolitan area of Minnesota, southwestern Wisconsin, Naples and Fort Myers, Florida, and Denver, Colorado. Substantially all income is derived from a diverse base of commercial, mortgage and retail lending activities, and investments.

Effect of New Financial Accounting Standards

Effect of New Financial Accounting Standards

Accounting Guidance Pending Adoption at September 30, 2023

On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASC 848 contains optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform. Certain optional expedients and exceptions for contract modifications and hedging relationships were amended in ASU 2021-01, Reference Rate Reform (Topic 848): Scope Refinement, issued on January 7, 2021. In addition, ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset

Date of Topic 848, deferred the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which time entities will no longer be permitted to apply the relief in Topic 848. The adoption of ASU 2020-04 is not expected to have a material impact on the Company’s consolidated financial statements.

Accounting Guidance Adopted at September 30, 2023

On March 31, 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. For creditors that have adopted the CECL accounting guidance within ASU 2016-13, the amendments eliminate the accounting guidance for TDRs within ASC 310-40, while also enhancing the disclosure requirements for certain loan refinancings and restructurings when a borrower is experiencing financial difficulty. In addition, public business entities must also disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20. The amendments are effective for fiscal years beginning after December 15, 2022 and should be applied prospectively, with an option to apply a modified retrospective transition approach for the recognition and measurement of TDRs. The adoption of ASU 2022-02 was applied prospectively and did not have a material impact on the Company's consolidated financial statements.

Derivatives Designated as Hedging Instruments

Derivatives Designated as Hedging Instruments

The Company uses derivative instruments to hedge its exposure to economic risks. Certain hedging relationships are formally designated and qualify for hedge accounting under GAAP as fair value or cash flow hedges.

Fair Value Hedges - Derivatives are designated as fair value hedges to limit the Company's exposure to changes in the fair value of assets or liabilities due to movements in interest rates. The Company entered into pay-fixed receive-floating interest rate swaps to manage its exposure to changes in fair value in certain fixed-rate assets. The gain or loss on the loan fair value hedge derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income. The change in the fair value of the available for sale securities attributable to changes in the hedged risk is recorded in accumulated other comprehensive income and subsequently reclassified into interest income, as applicable, in the same period(s) to offset the changes in the fair value of the swap, which is also recognized in interest income.

Cash Flow Hedges - Derivatives are designated as cash flow hedges in order to minimize the variability in cash flows of earning assets or forecasted transactions caused by movement in interest rates. The Company entered into pay-fixed receive-variable interest rate swaps to hedge against adverse fluctuations in interest rates by reducing exposure to variability in cash

flows relating to interest payments on the Company's variable rate debt. The gain or loss on the derivatives is recorded in accumulated other comprehensive income and subsequently reclassified into interest expense, as applicable, in the same period(s) during which the hedged transaction affects earnings. During the next 12 months, the Company estimates that an additional $3.0 million of income will be reclassified into interest expense.

The table below presents the effect of cash flow hedge accounting on AOCI for the three and nine months ended September 30, 2023 and 2022:

	Amount of Gain (Loss) Recognized in AOCI on Derivative				Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
	Three Months Ended September 30,					Three Months Ended September 30,
(in thousands)	2023		2022			2023		2022
Interest rate swaps	$	1,829	$	—	Interest Expense	$	761	$	—
	Nine Months Ended September 30,					Nine Months Ended September 30,
(in thousands)	2023		2022			2023		2022
Interest rate swaps	$	5,288	$	—	Interest Expense	$	999	$	—

Fair Value Measurements

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  There are three levels of inputs that may be used to measure fair values:

•Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

•Level 2 – Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

•Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

For additional information regarding the valuation methodologies used to measure the Company's assets recorded at fair value, and for estimating fair value for financial instruments not recorded at fair value, see Note 1. Nature of Business and Significant Accounting Policies and Note 20. Estimated Fair Value of Financial Instruments and Fair Value Measurements to the consolidated financial statements in the Company's 2022 Annual Report on Form 10-K, filed with the SEC on March 13, 2023.

The Company uses fair value to measure certain assets and liabilities on a recurring basis, primarily available for sale debt securities, derivatives and mortgage servicing rights. For assets measured at the lower of cost or fair value, the fair value measurement criteria may or may not be met during a reporting period, and such measurements are therefore considered "nonrecurring" for purposes of disclosing the Company's fair value measurements. Fair value is used on a nonrecurring basis to adjust carrying values for collateral dependent individually analyzed loans and other real estate owned.

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Business Combinations (Tables)

9 Months Ended

Sep. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The table below summarizes the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed:

(in thousands)	June 9, 2022
Merger consideration
Cash consideration	$	46,672
Identifiable net assets acquired, at fair value
Assets acquired
Cash and due from banks	$	10,192
Interest earning deposits in banks	67,855
Debt securities	119,820
Loans held for investment	281,326
Premises and equipment	7,363
Core deposit intangible	16,500
Other assets	14,140
Total assets acquired	517,196
Liabilities assumed
Deposits	$	(463,638)
Other liabilities	(3,117)
Total liabilities assumed	(466,755)
Identifiable net assets acquired, at fair value	50,441
Bargain Purchase Gain	$	3,769

Schedule of Business Acquisition Information

The following table provides a summary of these PCD loans at acquisition:

(in thousands)	June 9, 2022
Par value of PCD loans acquired	$	15,396
PCD ACL at acquisition	(3,371)
Non-credit discount on PCD loans	(1,005)
Purchase price of PCD loans	$	11,020

The following table summarizes the DNVB and IOFB acquisition-related expenses, which are included in the respective income statement line items, for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2023		2022		2023		2022
Noninterest Expense
Compensation and employee benefits	$	—	$	132	$	70	$	282
Occupancy expense of premises, net	—		—		—		1
Equipment	—		14		—		25
Legal and professional	11		193		11		894
Data processing	—		304		65		380
Marketing	—		90		—		162
Communications	—		—		—		3
Other	—		30		1		45
Total acquisition-related expenses	$	11	$	763	$	147	$	1,792

Schedule of Business Acquisition, Pro Forma Information

For illustrative purposes only, the following table presents certain unaudited pro forma information for the three and nine months ended September 30, 2022. This unaudited, estimated pro forma information was calculated as if IOFB had been acquired as of the beginning of the year prior to the date of acquisition. This unaudited pro forma information combines the historical results of IOFB and the Company and includes adjustments for the estimated impact of certain fair value purchase accounting, interest expense, acquisition-related expenses, and income tax expense for the respective periods. The pro forma information is not indicative of what would have occurred had the acquisition occurred as of the beginning of the year prior to the acquisition. Additionally, MidWestOne expects to achieve further operating cost savings and other business synergies, including revenue growth as a result of the acquisition, which are not reflected in the pro forma amounts that follow. As a result, actual amounts would have differed from the unaudited pro forma information presented.

	Three Months Ended			Nine Months Ended
	September 30,			September 30,
(in thousands, except per share amounts)		2022		2022
Total revenues		$	55,954	$	165,053
Net Income		$	17,111	$	46,663
EPS - basic		$	1.10	$	2.98
EPS - diluted		$	1.09	$	2.97

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Debt Securities (Tables)

9 Months Ended

Sep. 30, 2023

Debt Securities [Abstract]

Schedule of Debt Securities, Available-for-sale

The following tables summarize the amortized cost, gross unrealized gains and losses and the resulting fair value of debt securities as of the dates indicated:

	As of September 30, 2023
(in thousands)	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Loss related to Debt Securities		Fair Value
Available for Sale
State and political subdivisions	$	177,300	$	1	$	14,833	$	—	$	162,468
Mortgage-backed securities	5,574		—		247		—		5,327
Collateralized loan obligations	52,697		6		250		—		52,453
Collateralized mortgage obligations	159,344		—		27,421		—		131,923
Corporate debt securities	586,612		60		66,073		—		520,599
Total available for sale debt securities	$	981,527	$	67	$	108,824	$	—	$	872,770
Held to Maturity
State and political subdivisions	$	532,885	$	—	$	100,821	$	—	$	432,064
Mortgage-backed securities	76,310		—		15,863		—		60,447
Collateralized mortgage obligations	476,556		—		120,704		—		355,852
Total held to maturity debt securities	$	1,085,751	$	—	$	237,388	$	—	$	848,363
(1) Amortized cost for the held to maturity securities includes $223 thousand of unamortized gain in state and political subdivisions, $35 thousand of unamortized gains in mortgage-backed securities and $10.2 million of unamortized losses in collateralized mortgage obligations related to the re-classification of securities from available for sale to held to maturity on January 1, 2022.

	As of December 31, 2022
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Loss related to Debt Securities		Fair Value
Available for Sale
U.S. Government agencies and corporations	$	7,598	$	—	$	253	$	—	$	7,345
State and political subdivisions	303,573		27		18,244		—		285,356
Mortgage-backed securities	6,165		11		232		—		5,944
Collateralized mortgage obligations	172,568		—		25,375		—		147,193
Corporate debt securities	771,836		125		64,252		—		707,709
Total available for sale debt securities	$	1,261,740	$	163	$	108,356	$	—	$	1,153,547
Held to Maturity
State and political subdivisions	$	538,746	$	—	$	88,349	$	—	$	450,397
Mortgage-backed securities	81,032		—		12,851		—		68,181
Collateralized mortgage obligations	509,643		—		103,327		—		406,316
Total held to maturity debt securities	$	1,129,421	$	—	$	204,527	$	—	$	924,894

Schedule of Debt Securities, Held-to-maturity

The following tables summarize the amortized cost, gross unrealized gains and losses and the resulting fair value of debt securities as of the dates indicated:

	As of September 30, 2023
(in thousands)	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Loss related to Debt Securities		Fair Value
Available for Sale
State and political subdivisions	$	177,300	$	1	$	14,833	$	—	$	162,468
Mortgage-backed securities	5,574		—		247		—		5,327
Collateralized loan obligations	52,697		6		250		—		52,453
Collateralized mortgage obligations	159,344		—		27,421		—		131,923
Corporate debt securities	586,612		60		66,073		—		520,599
Total available for sale debt securities	$	981,527	$	67	$	108,824	$	—	$	872,770
Held to Maturity
State and political subdivisions	$	532,885	$	—	$	100,821	$	—	$	432,064
Mortgage-backed securities	76,310		—		15,863		—		60,447
Collateralized mortgage obligations	476,556		—		120,704		—		355,852
Total held to maturity debt securities	$	1,085,751	$	—	$	237,388	$	—	$	848,363
(1) Amortized cost for the held to maturity securities includes $223 thousand of unamortized gain in state and political subdivisions, $35 thousand of unamortized gains in mortgage-backed securities and $10.2 million of unamortized losses in collateralized mortgage obligations related to the re-classification of securities from available for sale to held to maturity on January 1, 2022.

	As of December 31, 2022
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Loss related to Debt Securities		Fair Value
Available for Sale
U.S. Government agencies and corporations	$	7,598	$	—	$	253	$	—	$	7,345
State and political subdivisions	303,573		27		18,244		—		285,356
Mortgage-backed securities	6,165		11		232		—		5,944
Collateralized mortgage obligations	172,568		—		25,375		—		147,193
Corporate debt securities	771,836		125		64,252		—		707,709
Total available for sale debt securities	$	1,261,740	$	163	$	108,356	$	—	$	1,153,547
Held to Maturity
State and political subdivisions	$	538,746	$	—	$	88,349	$	—	$	450,397
Mortgage-backed securities	81,032		—		12,851		—		68,181
Collateralized mortgage obligations	509,643		—		103,327		—		406,316
Total held to maturity debt securities	$	1,129,421	$	—	$	204,527	$	—	$	924,894

Schedule of Debt Securities, Available-for-sale, in Unrealized Loss Position

The following table presents debt securities AFS in an unrealized loss position for which an allowance for credit losses has not been recorded as of September 30, 2023, aggregated by investment category and length of time in a continuous loss position:

		As of September 30, 2023
	Number of Securities	Less than 12 Months				12 Months or More				Total
Available for Sale		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(in thousands, except number of securities)
State and political subdivisions	200	$	17,776	$	969	$	141,021	$	13,864	$	158,797	$	14,833
Mortgage-backed securities	29	376		6		4,910		241		5,286		247
Collateralized loan obligations	4	39,870		250		—		—		39,870		250
Collateralized mortgage obligations	20	6,628		27		125,295		27,394		131,923		27,421
Corporate debt securities	142	4,130		75		493,017		65,998		497,147		66,073
Total	395	$	68,780	$	1,327	$	764,243	$	107,497	$	833,023	$	108,824

The following table presents debt securities AFS in an unrealized loss position for which an allowance for credit losses has not been recorded as of December 31, 2022, aggregated by investment category and length of time in a continuous loss position:

		As of December 31, 2022
Available for Sale	Number of Securities	Less than 12 Months				12 Months or More				Total
		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
(in thousands, except number of securities)
U.S. Government agencies and corporations	8	$	7,345	$	253	$	—	$	—	$	7,345	$	253
State and political subdivisions	380	248,339		14,553		20,631		3,691		268,970		18,244
Mortgage-backed securities	27	5,323		231		45		1		5,368		232
Collateralized mortgage obligations	20	75,041		7,121		72,152		18,254		147,193		25,375
Corporate debt securities	159	369,441		21,679		288,329		42,573		657,770		64,252
Total	594	$	705,489	$	43,837	$	381,157	$	64,519	$	1,086,646	$	108,356

Schedule of Proceeds and Realized Gains (Losses)

Proceeds and gross realized gains and losses on debt securities available for sale for the three and nine months ended September 30, 2023 and 2022, were as follows:

	Three Months Ended				Nine Months Ended
(in thousands)	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Proceeds from sales of debt securities available for sale	$	—	$	17,570	$	218,667	$	129,823
Gross realized losses from sales of debt securities available for sale	—		(167)		(13,170)		(167)
Net realized loss from sales of debt securities available for sale(1)	$	—	$	(167)	$	(13,170)	$	(167)
(1) The difference in investment security gains, net reported herein as compared to the Consolidated Statements of Income is associated with the net realized gain from the call of debt securities of $79 thousand and $77 thousand for the three and nine months ended September 30, 2023 and $4 thousand and $439 thousand for the three and nine months ended September 30, 2022.

Schedule of Investments Classified by Contractual Maturity Date

The contractual maturity distribution of investment debt securities at September 30, 2023, is shown below. Expected maturities of MBS, CLO and CMO may differ from contractual maturities because the mortgages underlying the securities may be called or prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following summary.

	Available for Sale				Held to Maturity
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	53,730	$	52,581	$	2,563	$	2,495
Due after one year through five years	522,893		473,528		132,842		117,757
Due after five years through ten years	158,373		133,485		232,569		186,814
Due after ten years	28,916		23,473		164,911		124,998
	$	763,912	$	683,067	$	532,885	$	432,064
Mortgage-backed securities	5,574		5,327		76,310		60,447
Collateralized loan obligations	52,697		52,453		—		—
Collateralized mortgage obligations	159,344		131,923		476,556		355,852
Total	$	981,527	$	872,770	$	1,085,751	$	848,363

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Loans Receivable and the Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Schedule of Loans by Lending Classification

The composition of loans by class of receivable was as follows:

	As of
(in thousands)	September 30, 2023		December 31, 2022
Agricultural	$	111,950	$	115,320
Commercial and industrial	1,078,773		1,055,162
Commercial real estate:
Construction & development	331,868		270,991
Farmland	182,621		183,913
Multifamily	337,509		252,129
Commercial real estate-other	1,324,019		1,272,985
Total commercial real estate	2,176,017		1,980,018
Residential real estate:
One- to four- family first liens	456,771		451,210
One- to four- family junior liens	173,275		163,218
Total residential real estate	630,046		614,428
Consumer	69,183		75,596
Loans held for investment, net of unearned income	4,065,969		3,840,524
Allowance for credit losses	(51,600)		(49,200)
Total loans held for investment, net	$	4,014,369	$	3,791,324

Schedule of Loans Based on Delinquency Status

The following tables present the amortized cost basis of loans based on delinquency status:

			Age Analysis of Past-Due Financial Assets								90 Days or More Past Due And Accruing
(in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
September 30, 2023
Agricultural	$	111,713	$	—	$	13	$	224	$	111,950	$	—
Commercial and industrial	1,077,276		616		31		850		1,078,773		—
Commercial real estate:
Construction and development	331,868		—		—		—		331,868		—
Farmland	181,352		30		—		1,239		182,621		—
Multifamily	337,509		—		—		—		337,509		—
Commercial real estate-other	1,319,503		29		—		4,487		1,324,019		—
Total commercial real estate	2,170,232		59		—		5,726		2,176,017		—
Residential real estate:
One- to four- family first liens	449,842		3,609		2,286		1,034		456,771		100
One- to four- family junior liens	172,936		202		23		114		173,275		—
Total residential real estate	622,778		3,811		2,309		1,148		630,046		100
Consumer	68,869		275		36		3		69,183		—
Total	$	4,050,868	$	4,761	$	2,389	$	7,951	$	4,065,969	$	100

			Age Analysis of Past-Due Financial Assets								90 Days or More Past Due And Accruing
(in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
December 31, 2022
Agricultural	$	114,922	$	100	$	—	$	298	$	115,320	$	—
Commercial and industrial	1,052,406		922		111		1,723		1,055,162		—
Commercial real estate:
Construction and development	270,905		86		—		—		270,991		—
Farmland	182,115		729		—		1,069		183,913		—
Multifamily	252,129		—		—		—		252,129		—
Commercial real estate-other	1,266,874		5,574		45		492		1,272,985		—
Total commercial real estate	1,972,023		6,389		45		1,561		1,980,018		—
Residential real estate:
One- to four- family first liens	446,066		3,177		954		1,013		451,210		565
One- to four- family junior liens	161,989		301		78		850		163,218		—
Total residential real estate	608,055		3,478		1,032		1,863		614,428		565
Consumer	75,443		110		17		26		75,596		—
Total	$	3,822,849	$	10,999	$	1,205	$	5,471	$	3,840,524	$	565

Schedule of Amortized Cost Basis on Nonaccrual Status

The following table presents the amortized cost basis of loans on non-accrual status, amortized cost basis of loans on non-accrual status with no allowance for credit losses recorded, and loans past due 90 days or more and still accruing by class of loan:

	Nonaccrual				Nonaccrual with no Allowance for Credit Losses				90 Days or More Past Due And Accruing
(in thousands)	September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022
Agricultural	$	240	$	377	$	224	$	281	$	—	$	—
Commercial and industrial	18,472		2,728		12,585		1,049		—		—
Commercial real estate:
Construction and development	—		—		—		—		—		—
Farmland	1,736		2,278		1,590		1,997		—		—
Multifamily	—		—		—		—		—		—
Commercial real estate-other	5,117		6,397		369		5,647		—		—
Total commercial real estate	6,853		8,675		1,959		7,644		—		—
Residential real estate:
One- to four- family first liens	2,339		2,275		546		928		100		565
One- to four- family junior liens	969		1,165		—		—		—		—
Total residential real estate	3,308		3,440		546		928		100		565
Consumer	14		36		—		—		—		—
Total	$	28,887	$	15,256	$	15,314	$	9,902	$	100	$	565

Schedule of Credit Quality Indicator

The following table sets forth the amortized cost basis of loans by class of receivable by credit quality indicator, and vintage, in addition to the current period gross write-offs by class of receivable and vintage, based on the most recent analysis performed, as of September 30, 2023. As of September 30, 2023, there were no 'loss' rated credits.

	Term Loans by Origination Year												Revolving Loans
September 30, 2023 (in thousands)	2023		2022		2021		2020		2019		Prior				Total
Agricultural
Pass	$	11,277	$	13,087	$	9,451	$	3,268	$	1,359	$	1,155	$	63,474	$	103,071
Special mention / watch	268		609		801		102		6		523		3,722		6,031
Substandard	394		151		184		214		2		225		1,678		2,848
Doubtful	—		—		—		—		—		—		—		—
Total	$	11,939	$	13,847	$	10,436	$	3,584	$	1,367	$	1,903	$	68,874	$	111,950
Commercial and industrial
Pass	$	111,886	$	243,011	$	212,836	$	129,482	$	27,383	$	119,645	$	161,886	$	1,006,129
Special mention / watch	1,437		766		652		4,646		8,101		7,825		13,751		37,178
Substandard	1,471		2,571		2,440		1,344		717		22,571		4,352		35,466
Doubtful	—		—		—		—		—		—		—		—
Total	$	114,794	$	246,348	$	215,928	$	135,472	$	36,201	$	150,041	$	179,989	$	1,078,773
CRE - Construction and development
Pass	$	69,354	$	198,619	$	47,522	$	3,532	$	833	$	1,118	$	9,754	$	330,732
Special mention / watch	—		—		474		—		—		—		412		886
Substandard	—		249		—		—		—		1		—		250
Doubtful	—		—		—		—		—		—		—		—
Total	$	69,354	$	198,868	$	47,996	$	3,532	$	833	$	1,119	$	10,166	$	331,868
CRE - Farmland
Pass	$	17,318	$	50,872	$	48,074	$	19,438	$	6,703	$	16,056	$	1,866	$	160,327
Special mention / watch	1,237		2,761		2,456		6,104		—		1,180		804		14,542
Substandard	1,592		118		1,545		1,103		1,058		2,306		30		7,752
Doubtful	—		—		—		—		—		—		—		—
Total	$	20,147	$	53,751	$	52,075	$	26,645	$	7,761	$	19,542	$	2,700	$	182,621
CRE - Multifamily
Pass	$	28,961	$	55,115	$	112,033	$	83,413	$	8,800	$	5,654	$	33	$	294,009
Special mention / watch	—		1,244		280		19,112		7,899		7,025		—		35,560
Substandard	—		—		7,611		329		—		—		—		7,940
Doubtful	—		—		—		—		—		—		—		—
Total	$	28,961	$	56,359	$	119,924	$	102,854	$	16,699	$	12,679	$	33	$	337,509
CRE - Other
Pass	$	151,212	$	292,139	$	272,055	$	264,462	$	78,764	$	97,815	$	47,111	$	1,203,558
Special mention / watch	1,520		25,905		21,389		4,639		4,290		3,301		3,947		64,991
Substandard	324		2,104		1,704		20,414		12,067		18,018		839		55,470
Doubtful	—		—		—		—		—		—		—		—
Total	$	153,056	$	320,148	$	295,148	$	289,515	$	95,121	$	119,134	$	51,897	$	1,324,019
RRE - One- to four- family first liens
Pass / Performing	$	52,320	$	128,048	$	94,709	$	55,492	$	20,236	$	84,489	$	11,312	$	446,606
Special mention / watch	470		721		36		633		1,851		323		—		4,034
Substandard / Nonperforming	1,171		463		485		166		167		3,679		—		6,131
Doubtful	—		—		—		—		—		—		—		—
Total	$	53,961	$	129,232	$	95,230	$	56,291	$	22,254	$	88,491	$	11,312	$	456,771
RRE - One- to four- family junior liens
Performing	$	20,458	$	31,327	$	19,622	$	7,643	$	2,449	$	8,322	$	82,485	$	172,306
Nonperforming	—		—		—		26		203		740		—		969
Total	$	20,458	$	31,327	$	19,622	$	7,669	$	2,652	$	9,062	$	82,485	$	173,275
Consumer
Performing	$	21,003	$	18,598	$	11,481	$	5,213	$	1,821	$	6,911	$	4,143	$	69,170
Nonperforming	—		—		—		5		5		3		—		13
Total	$	21,003	$	18,598	$	11,481	$	5,218	$	1,826	$	6,914	$	4,143	$	69,183

	Term Loans by Origination Year												Revolving Loans
September 30, 2023 (in thousands)	2023		2022		2021		2020		2019		Prior				Total
Total by Credit Quality Indicator Category
Pass	$	442,328	$	980,891	$	796,680	$	559,087	$	144,078	$	325,932	$	295,436	$	3,544,432
Special mention / watch	4,932		32,006		26,088		35,236		22,147		20,177		22,636		163,222
Substandard	4,952		5,656		13,969		23,570		14,011		46,800		6,899		115,857
Doubtful	—		—		—		—		—		—		—		—
Performing	41,461		49,925		31,103		12,856		4,270		15,233		86,628		241,476
Nonperforming	—		—		—		31		208		743		—		982
Total	$	493,673	$	1,068,478	$	867,840	$	630,780	$	184,714	$	408,885	$	411,599	$	4,065,969
Year-to-date Current Period Gross Write-offs
Agricultural	$	—	$	8	$	1	$	17	$	—	$	—	$	—	$	26
Commercial and industrial	30		256		143		115		431		45		—		1,020
CRE - Construction and development	—		—		—		—		—		—		—		—
CRE - Farmland	—		—		—		—		—		—		—		—
CRE - Multifamily	—		—		—		—		—		—		—		—
CRE - Other	—		—		—		—		—		830		—		830
RRE - One-to-four-family first liens	—		—		—		—		—		35		—		35
RRE - One-to-four-family junior liens	—		19		—		—		—		—		—		19
Consumer	—		424		9		3		11		4		—		451
Total Current Period Gross Write-offs	$	30	$	707	$	153	$	135	$	442	$	914	$	—	$	2,381

The following table sets forth the amortized cost basis of loans by class of receivable by credit quality indicator and vintage based on the most recent analysis performed, as of December 31, 2022. As of December 31, 2022, there were no 'loss' rated credits.

	Term Loans by Origination Year												Revolving Loans
December 31, 2022 (in thousands)	2022		2021		2020		2019		2018		Prior				Total
Agricultural
Pass	$	20,279	$	12,511	$	5,398	$	2,883	$	939	$	1,063	$	65,395	$	108,468
Special mention / watch	143		1,012		115		36		—		604		1,655		3,565
Substandard	48		646		366		4		7		302		1,914		3,287
Doubtful	—		—		—		—		—		—		—		—
Total	$	20,470	$	14,169	$	5,879	$	2,923	$	946	$	1,969	$	68,964	$	115,320
Commercial and industrial
Pass	$	262,500	$	232,263	$	151,567	$	48,199	$	27,680	$	115,877	$	163,205	$	1,001,291
Special mention / watch	3,975		3,574		5,465		592		3,299		1,864		12,299		31,068
Substandard	556		166		1,172		756		556		18,585		1,012		22,803
Doubtful	—		—		—		—		—		—		—		—
Total	$	267,031	$	236,003	$	158,204	$	49,547	$	31,535	$	136,326	$	176,516	$	1,055,162
CRE - Construction and development
Pass	$	144,597	$	73,832	$	19,324	$	989	$	1,058	$	549	$	28,069	$	268,418
Special mention / watch	1,787		499		—		—		—		—		—		2,286
Substandard	281		—		—		—		—		6		—		287
Doubtful	—		—		—		—		—		—		—		—
Total	$	146,665	$	74,331	$	19,324	$	989	$	1,058	$	555	$	28,069	$	270,991
CRE - Farmland
Pass	$	55,251	$	52,802	$	28,744	$	7,266	$	8,406	$	12,895	$	1,946	$	167,310
Special mention / watch	3,058		2,229		1,470		—		225		21		1,693		8,696
Substandard	148		1,974		1,192		1,136		1,459		1,998		—		7,907
Doubtful	—		—		—		—		—		—		—		—
Total	$	58,457	$	57,005	$	31,406	$	8,402	$	10,090	$	14,914	$	3,639	$	183,913
CRE - Multifamily
Pass	$	31,018	$	93,907	$	84,573	$	17,137	$	2,549	$	5,161	$	49	$	234,394
Special mention / watch	1,000		—		1,567		—		5,931		1,178		—		9,676
Substandard	—		7,725		334		—		—		—		—		8,059
Doubtful	—		—		—		—		—		—		—		—
Total	$	32,018	$	101,632	$	86,474	$	17,137	$	8,480	$	6,339	$	49	$	252,129
CRE - Other
Pass	$	322,753	$	314,376	$	296,368	$	79,408	$	31,041	$	81,708	$	51,064	$	1,176,718
Special mention / watch	8,858		3,399		13,245		10,365		1,137		8,122		2,518		47,644
Substandard	752		589		19,702		13,294		10,197		4,089		—		48,623
Doubtful	—		—		—		—		—		—		—		—
Total	$	332,363	$	318,364	$	329,315	$	103,067	$	42,375	$	93,919	$	53,582	$	1,272,985
RRE - One- to four- family first liens
Pass / Performing	$	139,289	$	103,534	$	63,627	$	23,831	$	21,868	$	77,967	$	11,438	$	441,554
Special mention / watch	1,074		611		672		1,920		150		702		—		5,129
Substandard / Nonperforming	175		438		174		175		674		2,891		—		4,527
Doubtful	—		—		—		—		—		—		—		—
Total	$	140,538	$	104,583	$	64,473	$	25,926	$	22,692	$	81,560	$	11,438	$	451,210
RRE - One- to four- family junior liens
Performing	$	37,296	$	22,908	$	8,906	$	3,058	$	3,757	$	6,330	$	79,798	$	162,053
Nonperforming	—		23		31		179		756		76		100		1,165
Total	$	37,296	$	22,931	$	8,937	$	3,237	$	4,513	$	6,406	$	79,898	$	163,218
Consumer
Performing	$	32,584	$	18,979	$	7,966	$	3,489	$	1,646	$	6,641	$	4,255	$	75,560
Nonperforming	—		2		16		9		4		5		—		36
Total	$	32,584	$	18,981	$	7,982	$	3,498	$	1,650	$	6,646	$	4,255	$	75,596
Total by Credit Quality Indicator Category
Pass	$	975,687	$	883,225	$	649,601	$	179,713	$	93,541	$	295,220	$	321,166	$	3,398,153
Special mention / watch	19,895		11,324		22,534		12,913		10,742		12,491		18,165		108,064
Substandard	1,960		11,538		22,940		15,365		12,893		27,871		2,926		95,493
Doubtful	—		—		—		—		—		—		—		—
Performing	69,880		41,887		16,872		6,547		5,403		12,971		84,053		237,613
Nonperforming	—		25		47		188		760		81		100		1,201
Total	$	1,067,422	$	947,999	$	711,994	$	214,726	$	123,339	$	348,634	$	426,410	$	3,840,524

Schedule of Changes in Allowance for Credit Losses

The changes in the allowance for credit losses by portfolio segment were as follows:

	For the Three Months Ended September 30, 2023 and 2022
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
For the Three Months Ended September 30, 2023
Beginning balance	$	617	$	22,921	$	21,911	$	4,393	$	558	$	50,400
Charge-offs	(25)		(511)		—		(21)		(178)		(735)
Recoveries	126		79		4		3		72		284
Credit loss expense (benefit)(1)	(181)		(426)		1,872		268		118		1,651
Ending balance	$	537	$	22,063	$	23,787	$	4,643	$	570	$	51,600
For the Three Months Ended September 30, 2022
Beginning balance	$	987	$	21,166	$	24,399	$	5,174	$	624	$	52,350
Charge-offs	(248)		(280)		(135)		(52)		(255)		(970)
Recoveries	1		295		6		48		32		382
Credit loss expense (benefit) (1)	241		3,075		(3,322)		138		206		338
Ending balance	$	981	$	24,256	$	20,948	$	5,308	$	607	$	52,100
(1) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss (benefit) expense of $(0.1) million and $0.3 million related to off-balance sheet credit exposures for the three months ended September 30, 2023 and September 30, 2022, respectively.

	For the Nine Months Ended September 30, 2023 and 2022
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
For the Nine Months Ended September 30, 2023
Beginning balance	$	923	$	22,855	$	20,123	$	4,678	$	621	$	49,200
Charge-offs	(26)		(1,020)		(830)		(54)		(451)		(2,381)
Recoveries	153		349		15		23		160		700
Credit loss expense (benefit)(1)	(513)		(121)		4,479		(4)		240		4,081
Ending balance	$	537	$	22,063	$	23,787	$	4,643	$	570	$	51,600
For the Nine Months Ended September 30, 2022
Beginning balance	$	667	$	17,294	$	26,120	$	4,010	$	609	$	48,700
PCD allowance established in acquisition	512		1,473		1,227		159		—		3,371
Charge-offs	(249)		(843)		(2,319)		(90)		(540)		(4,041)
Recoveries	9		613		154		68		106		950
Credit loss (benefit) expense(1)	42		5,719		(4,234)		1,161		432		3,120
Ending balance	$	981	$	24,256	$	20,948	$	5,308	$	607	$	52,100
(1) The difference in the credit loss expense reported herein as compared to the Consolidated Statements of Income is associated with the credit loss expense (benefit) of $0.0 million and $0.8 million related to off-balance sheet credit exposures for the nine months ended September 30, 2023 and September 30, 2022, respectively.

The composition of allowance for credit losses by portfolio segment based on evaluation method was as follows:

	As of September 30, 2023
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
Loans held for investment, net of unearned income
Individually evaluated for impairment	$	224	$	17,687	$	12,759	$	1,167	$	—	$	31,837
Collectively evaluated for impairment	111,726		1,061,086		2,163,258		628,879		69,183		4,034,132
Total	$	111,950	$	1,078,773	$	2,176,017	$	630,046	$	69,183	$	4,065,969
Allowance for credit losses:
Individually evaluated for impairment	$	—	$	2,879	$	1,128	$	46	$	—	$	4,053
Collectively evaluated for impairment	537		19,184		22,659		4,597		570		47,547
Total	$	537	$	22,063	$	23,787	$	4,643	$	570	$	51,600

	As of December 31, 2022
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
Loans held for investment, net of unearned income
Individually evaluated for impairment	$	2,531	$	2,184	$	15,768	$	1,650	$	—	$	22,133
Collectively evaluated for impairment	112,789		1,052,978		1,964,250		612,778		75,596		3,818,391
Total	$	115,320	$	1,055,162	$	1,980,018	$	614,428	$	75,596	$	3,840,524
Allowance for credit losses:
Individually evaluated for impairment	$	500	$	600	$	705	$	180	$	—	$	1,985
Collectively evaluated for impairment	423		22,255		19,418		4,498		621		47,215
Total	$	923	$	22,855	$	20,123	$	4,678	$	621	$	49,200

Schedule of Financing Receivable, Collateral Depend Loans

The following tables present the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans:

	As of September 30, 2023
(in thousands)	Primary Type of Collateral
	Real Estate		Equipment		Other		Total		ACL Allocation
Agricultural	$	12	$	212	$	—	$	224	$	—
Commercial and industrial	15,992		326		1,369		17,687		2,879
Commercial real estate:
Construction and development	—		—		—		—		—
Farmland	5,582		—		—		5,582		—
Multifamily	—		—		—		—		—
Commercial real estate-other	6,991		—		186		7,177		1,128
Residential real estate:
One- to four- family first liens	546		—		—		546		—
One- to four- family junior liens	—		—		621		621		46
Consumer	—		—		—		—		—
Total	$	29,123	$	538	$	2,176	$	31,837	$	4,053

	As of December 31, 2022
(in thousands)	Primary Type of Collateral
	Real Estate		Equipment		Other		Total		ACL Allocation
Agricultural	$	68	$	2,463	$	—	$	2,531	$	500
Commercial and industrial	856		736		592		2,184		600
Commercial real estate:
Construction and development	—		—		—		—		—
Farmland	4,515		—		—		4,515		—
Multifamily	—		—		—		—		—
Commercial real estate-other	11,006		—		247		11,253		705
Residential real estate:
One- to four- family first liens	929		—		—		929		—
One- to four- family junior liens	—		—		721		721		180
Consumer	—		—		—		—		—
Total	$	17,374	$	3,199	$	1,560	$	22,133	$	1,985

Schedule of TDRs by Class of Financing Receivable

The following table presents the amortized cost basis of loans as of September 30, 2023 that were modified during the three and nine months ended September 30, 2023 and experiencing financial difficulty at the time of the modification by class and by type of modification:

	For the Three Months and Nine Months Ended September 30, 2023
									Combination:
(dollars in thousands)	Principal Forgiveness		Payment Delay		Term Extension		Interest Rate Reduction		Term Extension & Interest Rate Reduction		Principal Forgiveness & Term Extension		Principal Forgiveness, Term Extension, & Interest Rate Reduction		Payment Delay & Term Extension		Total Class of Financing Receivable
Three Months Ended September 30, 2023
Commercial and industrial	$	—	$	—	$	2,062	$	—	$	—	$	—	$	—	$	—	0.19	%
CRE - Other	—		—		1,368		—		—		—		—		—		0.10	%
Total	$	—	$	—	$	3,430	$	—	$	—	$	—	$	—	$	—
Nine Months Ended September 30, 2023
Agricultural	$	—	$	13	$	—	$	—	$	—	$	—	$	—	$	—	0.01	%
Commercial and industrial	—		264		2,820		—		103		302		—		188		0.34	%
CRE - Farmland	—		—		1,823		—		—		—		—		—		1.00	%
CRE - Other	—		158		1,368		—		—		—		—		—		0.12	%
RRE - One- to four- family first liens	—		—		49		—		—		—		—		—		0.01	%
Total	$	—	$	435	$	6,060	$	—	$	103	$	302	$	—	$	188

The following table presents the performance as of September 30, 2023 of loans that were modified while the borrower was experiencing financial difficulty at the time of modification in the last 12 months:

	As of September 30, 2023
(in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
Agricultural	$	—	$	—	$	13	$	—	$	13
Commercial and industrial	3,490		188		—		—		3,678
CRE - Farmland	1,823		—		—		—		1,823
CRE - Other	1,525		—		—		—		1,525
RRE - One- to four- family first liens	—		49		—		—		49
Total	$	6,838	$	237	$	13	$	—	$	7,088

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three and nine months ended September 30, 2023:

(dollars in thousands)	Principal Forgiveness		Weighted Average Interest Rate Reduction		Weighted Average Term Extension (Months)
Three Months Ended September 30, 2023
Commercial and industrial	$	—	—	%	9.9
CRE - Other	18		—	%	5.3
Total	$	18	—	%	8.1
Nine Months Ended September 30, 2023
Commercial and industrial	$	63	1.25	%	9.2
CRE - Farmland	—		—	%	0.9
CRE - Other	18		—	%	5.3
RRE - One- to four- family first liens	—		—	%	3.9
Total	$	81	1.25	%	6.1

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Derivatives, Hedging Activities and Balance Sheet Offsetting (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following table presents the total notional amounts and gross fair values of the Company’s derivatives as of the dates indicated. The derivative asset and liability balances are presented on a gross basis, prior to the application of master netting agreements, as included in other assets and other liabilities, respectively, on the consolidated balance sheets. The fair values of the Company's derivative instrument assets and liabilities are summarized as follows:

	As of September 30, 2023						As of December 31, 2022
	Notional Amount		Fair Value				Notional Amount		Fair Value
(in thousands)			Assets		Liabilities				Assets		Liabilities
Designated as hedging instruments:
Fair value hedges:
Interest rate swaps - loans	$	41,362	$	3,262	$	50	$	24,018	$	2,556	$	—
Interest rate swaps - securities	100,000		449		—		—		—		—
Cash flow hedges
Interest rate swaps	200,000		4,289		—		—		—		—
Total	$	341,362	$	8,000	$	50	$	24,018	$	2,556	$	—
Not designated as hedging instruments:
Interest rate swaps	$	364,153	$	23,408	$	23,438	$	331,197	$	21,084	$	21,087
RPAs - protection sold	186		—		—		—		—		—
RPAs - protection purchased	24,701		—		—		9,421		—		—
Interest rate lock commitments	1,474		18		—		1,372		7		—
Interest rate forward loan sales contracts	3,382		22		—		1,400		8		—
Total	$	393,896	$	23,448	$	23,438	$	343,390	$	21,099	$	21,087

Schedule of Derivatives Instrument Impacts on Statements

The table below presents the effect of the Company’s derivative financial instruments designated as hedging instruments on the consolidated statements of income for the periods indicated:

	Location and Amount of Gain or Loss Recognized in Income on Hedging Relationships
	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
	2023				2022				2023				2022
(in thousands)	Interest Income		Other Income		Interest Income		Other Income		Interest Income		Other Income		Interest Income		Other Income
Income and expense included in the consolidated statements of income related to the effects of fair value or cash flow hedges are recorded	$	317	$	—	$	24	$	—	$	666	$	—	$	(147)	$	—
The effects of fair value and cash flow hedging:
Gain (loss) on fair value hedging relationships in subtopic 815-20:
Interest contracts - loans:
Hedged items	(747)		—		(1,149)		—		(212)		—		(3,665)		—
Derivative designated as hedging instruments	964		—		1,175		—		1,219		—		3,519		—
Interest contracts - securities:
Hedged items	(454)		—		—		—		(454)		—		—		—
Derivative designated as hedging instruments	560		—		—		—		560		—		—		—
Income statement effect of cash flow hedging relationships in subtopic 815-20:
Interest contracts:
Amount reclassified from AOCI into income	761		—		—		—		999		—		—		—

Schedule of Hedged Items In Fair Value Hedging Relationship

As of September 30, 2023, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges:

Line Item in the Balance Sheet in Which the Hedged Item is Included	Carrying Amount of the Hedged Assets		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset
(in thousands)
Loans	$	38,187	$	(3,211)
Securities	$	99,546	$	(454)

Schedule of Derivatives Not Designated as Hedging Instruments

The following table presents the net gains (losses) recognized on the consolidated statements of income related to the derivatives not designated as hedging instruments for the periods indicated:

	Location in the Consolidated Statements of Income	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands)		2023		2022		2023		2022
Interest rate swaps	Other income	$	(27)	$	2	$	(27)	$	10
RPAs	Other income	1		—		70		1
Interest rate lock commitments	Loan revenue	(51)		(149)		11		(367)
Interest rate forward loan sales contracts	Loan revenue	(5)		91		14		63
Total		$	(82)	$	(56)	$	68	$	(293)

Schedule of Offsetting Derivative Assets And Liabilities

The table below presents gross derivatives and the respective collateral received or pledged in the form of other financial instruments as of September 30, 2023 and December 31, 2022, which are generally marketable securities and/or cash. The collateral amounts in the table below are limited to the outstanding balances of the related asset or liability (after netting is applied); thus instances of over-collateralization are not shown. Further, the net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheets.

							Gross Amounts Not Offset in the Balance Sheet
(in thousands)	Gross Amounts Recognized		Gross Amounts Offset in the Balance Sheet		Net Amounts presented in the Balance Sheet		Financial Instruments		Cash Collateral Received / Paid		Net Assets /Liabilities
As of September 30, 2023
Asset Derivatives	$	31,448	$	—	$	31,448	$	—	$	22,762	$	8,686
Liability Derivatives	23,488		—		23,488		—		9,420		14,068
As of December 31, 2022
Asset Derivatives	$	23,655	$	—	$	23,655	$	—	$	18,858	$	4,797
Liability Derivatives	21,087		—		21,087		—		3,460		17,627

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Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

The following table presents the gross carrying amount, accumulated amortization, and net carrying amount of other intangible assets as of the dates indicated:

	As of September 30, 2023						As of December 31, 2022
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangible	$	58,245	$	(40,171)	$	18,074	$	58,245	$	(35,822)	$	22,423
Customer relationship intangible	5,265		(4,905)		360		5,265		(4,490)		775
Other	2,700		(2,664)		36		2,700		(2,623)		77
	$	66,210	$	(47,740)	$	18,470	$	66,210	$	(42,935)	$	23,275
Indefinite-lived trade name intangible	$	7,040					$	7,040

Schedule of Indefinite-Lived Intangible Assets

The following table presents the gross carrying amount, accumulated amortization, and net carrying amount of other intangible assets as of the dates indicated:

	As of September 30, 2023						As of December 31, 2022
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangible	$	58,245	$	(40,171)	$	18,074	$	58,245	$	(35,822)	$	22,423
Customer relationship intangible	5,265		(4,905)		360		5,265		(4,490)		775
Other	2,700		(2,664)		36		2,700		(2,623)		77
	$	66,210	$	(47,740)	$	18,470	$	66,210	$	(42,935)	$	23,275
Indefinite-lived trade name intangible	$	7,040					$	7,040

Schedule of Future Amortization Expense

The following table provides the estimated future amortization expense for the remaining three months of the year ending December 31, 2023 and the succeeding annual periods:

(in thousands)	Core Deposit Intangible		Customer Relationship Intangible		Other		Total
2023	$	1,328	$	103	$	10	$	1,441
2024	4,705		239		24		4,968
2025	3,751		18		2		3,771
2026	2,797		—		—		2,797
2027	1,843		—		—		1,843
Thereafter	3,650		—		—		3,650
Total	$	18,074	$	360	$	36	$	18,470

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Other Assets (Tables)

9 Months Ended

Sep. 30, 2023

Other Assets [Abstract]

Schedule of Other Assets

The components of the Company's other assets as of September 30, 2023 and December 31, 2022 were as follows:

(in thousands)	September 30, 2023		December 31, 2022
Bank-owned life insurance	$	97,383	$	95,539
Interest receivable	30,095		27,090
FHLB stock	14,869		19,248
Mortgage servicing rights	13,438		13,421
Operating lease right-of-use assets, net	2,593		2,492
Federal and state income taxes, current	—		2,366
Federal and state income taxes, deferred	37,641		39,071
Derivative assets	31,448		23,655
Other receivables/assets	16,569		13,635
	$	244,036	$	236,517

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Deposits (Tables)

9 Months Ended

Sep. 30, 2023

Deposits [Abstract]

Schedule of Deposit Liabilities

The following table presents the composition of our deposits as of the dates indicated:

(in thousands)	September 30, 2023		December 31, 2022
Noninterest bearing deposits	$	924,213	$	1,053,450
Interest checking deposits	1,334,481		1,624,278
Money market deposits	1,127,287		937,340
Savings deposits	619,805		664,169
Time deposits of $250 and under	923,709		559,466
Time deposits over $250	433,829		630,239
Total deposits	$	5,363,324	$	5,468,942

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Short-Term Borrowings (Tables)

9 Months Ended

Sep. 30, 2023

Short-Term Debt [Abstract]

Schedule of Short-Term Borrowings

The following table summarizes our short-term borrowings as of the dates indicated:

	September 30, 2023				December 31, 2022
(in thousands)	Weighted Average Rate		Balance		Weighted Average Rate		Balance
Securities sold under agreements to repurchase	0.73	%	$	9,256	1.32	%	$	156,373
Federal Home Loan Bank advances	5.53		139,700		4.48		235,500
Federal Reserve Bank borrowings	5.03		225,000		—		—
Total	5.11	%	$	373,956	3.22	%	$	391,873

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Long-Term Debt (Tables)

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

The table below summarizes the terms of each issuance of junior subordinated notes outstanding as of the dates indicated:

(in thousands)	Face Value		Book Value		Interest Rate	Rate		Maturity Date	Callable Date
September 30, 2023
ATBancorp Statutory Trust I	$	7,732	$	6,959	Three-month CME Term SOFR + 0.26% Spread + 1.68% Margin	7.35	%	06/15/2036	06/15/2011
ATBancorp Statutory Trust II	12,372		11,018		Three-month CME Term SOFR + 0.26% Spread + 1.65% Margin	7.32	%	09/15/2037	06/15/2012
Barron Investment Capital Trust I	2,062		1,854		Three-month CME Term SOFR + 0.26% Spread + 2.15% Margin	7.81	%	09/23/2036	09/23/2011
Central Bancshares Capital Trust II	7,217		6,954		Three-month CME Term SOFR + 0.26% Spread + 3.50% Margin	9.17	%	03/15/2038	03/15/2013
MidWestOne Statutory Trust II	15,464		15,464		Three-month CME Term SOFR + 0.26% Spread + 1.59% Margin	7.26	%	12/15/2037	12/15/2012
Total	$	44,847	$	42,249
December 31, 2022
ATBancorp Statutory Trust I	$	7,732	$	6,928	Three-month LIBOR + 1.68%	6.45	%	06/15/2036	06/15/2011
ATBancorp Statutory Trust II	12,372		10,969		Three-month LIBOR + 1.65%	6.42	%	09/15/2037	06/15/2012
Barron Investment Capital Trust I	2,062		1,832		Three-month LIBOR + 2.15%	6.88	%	09/23/2036	09/23/2011
Central Bancshares Capital Trust II	7,217		6,923		Three-month LIBOR + 3.50%	8.27	%	03/15/2038	03/15/2013
MidWestOne Statutory Trust II	15,464		15,464		Three-month LIBOR + 1.59%	6.36	%	12/15/2037	12/15/2012
Total	$	44,847	$	42,116

Other long-term borrowings were as follows as of September 30, 2023 and December 31, 2022:

	September 30, 2023				December 31, 2022
(in thousands)	Weighted Average Rate		Balance		Weighted Average Rate		Balance
Finance lease payable	8.89	%	$	652	8.89	%	$	787
FHLB borrowings	3.11		6,270		2.91		17,301
Note payable to unaffiliated bank	6.88		11,250		5.67		15,000
Total	5.65	%	$	18,172	4.30	%	$	33,088

Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank

As of September 30, 2023, FHLB borrowings were as follows:

(in thousands)	Weighted Average Rate		Amount
Due in 2024	3.11	%	6,250
Valuation adjustment from acquisition accounting			20
Total			$	6,270

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Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share

The following table present the computation of basic and diluted earnings per common share for the periods indicated:

	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands, except per share amounts)	2023		2022		2023		2022
Basic Earnings Per Share:
Net income	$	9,138	$	18,317	$	18,129	$	44,833
Weighted average shares outstanding	15,688,502		15,623,498		15,672,989		15,657,917
Basic earnings per common share	$	0.58	$	1.17	$	1.16	$	2.86
Diluted Earnings Per Share:
Net income	$	9,138	$	18,317	$	18,129	$	44,833
Weighted average shares outstanding, including all dilutive potential shares	15,711,137		15,654,443		15,696,071		15,686,098
Diluted earnings per common share	$	0.58	$	1.17	$	1.15	$	2.86

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Regulatory Capital Requirements and Restrictions on Subsidiary Cash (Tables)

9 Months Ended

Sep. 30, 2023

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Schedule of Compliance with Regulatory Capital Requirements Under Banking Regulations

A comparison of the Company's and the Bank's capital with the corresponding minimum regulatory requirements in effect at September 30, 2023 and December 31, 2022, is presented below:

	Actual		For Capital Adequacy Purposes With Capital Conservation Buffer(1)		To Be Well Capitalized Under Prompt Corrective Action Provisions
(dollars in thousands)	Amount	Ratio	Amount	Ratio	Amount	Ratio
At September 30, 2023
Consolidated:
Total capital/risk weighted assets(1)	$668,678	12.45%	$564,137	10.50%	N/A	N/A
Tier 1 capital/risk weighted assets(1)	553,807	10.31	456,682	8.50	N/A	N/A
Common equity tier 1 capital/risk weighted assets(1)	511,558	9.52	376,091	7.00	N/A	N/A
Tier 1 leverage capital/average assets	553,807	8.58	258,071	4.00	N/A	N/A
MidWestOne Bank:
Total capital/risk weighted assets(1)	$662,831	12.36%	$563,166	10.50%	$536,348	10.00%
Tier 1 capital/risk weighted assets(1)	612,960	11.43	455,896	8.50	429,079	8.00
Common equity tier 1 capital/risk weighted assets(1)	612,960	11.43	375,444	7.00	348,626	6.50
Tier 1 leverage capital/average assets	612,960	9.51	257,931	4.00	322,414	5.00
At December 31, 2022
Consolidated:
Total capital/risk weighted assets(1)	$653,380	12.07%	$568,452	10.50%	N/A	N/A
Tier 1 capital/risk weighted assets(1)	544,300	10.05	460,175	8.50	N/A	N/A
Common equity tier 1 capital/risk weighted assets(1)	502,184	9.28	378,968	7.00	N/A	N/A
Tier 1 leverage capital/average assets	544,300	8.35	260,891	4.00	N/A	N/A
MidWestOne Bank:
Total capital/risk weighted assets(1)	$654,297	12.10%	$567,684	10.50%	$540,652	10.00%
Tier 1 capital/risk weighted assets(1)	610,217	11.29	459,554	8.50	432,522	8.00
Common equity tier 1 capital/risk weighted assets(1)	610,217	11.29	378,456	7.00	351,424	6.50
Tier 1 leverage capital/average assets	610,217	9.36	260,776	4.00	325,970	5.00

(1) Includes a capital conservation buffer of 2.50%.

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of Commitments

The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The following table summarizes the Bank’s commitments as of the dates indicated:

	September 30, 2023		December 31, 2022
(in thousands)
Commitments to extend credit	$	1,242,267	$	1,190,607
Commitments to sell loans	2,528		612
Standby letters of credit	9,078		18,398
Total	$	1,253,873	$	1,209,617

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Fair Value of Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value Measured on Recurring Basis

The following tables summarize assets and liabilities measured at fair value on a recurring basis at the dates indicated, by level within the fair value hierarchy:

	Fair Value Measurement at September 30, 2023 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Assets:
Available for sale debt securities:
State and political subdivisions	$	162,468	$	—	$	162,468	$	—
Mortgage-backed securities	5,327		—		5,327		—
Collateralized loan obligations	52,453		—		52,453		—
Collateralized mortgage obligations	131,923		—		131,923		—
Corporate debt securities	520,599		—		520,599		—
Derivative assets	31,448		—		31,430		18
Mortgage servicing rights	13,438		—		13,438		—
Liabilities:
Derivative liabilities	$	23,488	$	—	$	23,488	$	—

	Fair Value Measurement at December 31, 2022 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Assets:
Debt securities available for sale:
U.S. Government agencies and corporations	$	7,345	$	—	$	7,345	$	—
State and political subdivisions	285,356		—		285,356		—
Mortgage-backed securities	5,944		—		5,944		—
Collateralized mortgage obligations	147,193		—		147,193		—
Corporate debt securities	707,709		—		707,709		—
Derivative assets	23,655		—		23,648		7
Mortgage servicing rights	13,421		—		13,421		—
Liabilities:
Derivative liabilities	$	21,087	$	—	$	21,087	$	—

Schedule of Valuation Techniques

The following table presents the valuation technique, significant unobservable inputs, and quantitative information about the unobservable inputs used for fair value measurements of the financial instruments held by the Company and categorized within Level 3 of the fair value hierarchy at the dates indicated:

	Fair Value at
(dollars in thousands)	September 30, 2023		December 31, 2022		Valuation Techniques(s)	Unobservable Input	Range of Inputs			Weighted Average
Interest rate lock commitments	$	18	$	7	Quoted or published market prices of similar instruments, adjusted for factors such as pull-through rate assumptions	Pull-through rate	70%	-	100%	85%

The following table presents the valuation technique(s), unobservable inputs, and quantitative information about the unobservable inputs used for fair value measurements of the financial instruments held by the Company and categorized within Level 3 of the fair value hierarchy at the dates indicated:

	Fair Value at
(dollars in thousands)	September 30, 2023		December 31, 2022		Valuation Techniques(s)	Unobservable Input	Range of Inputs			Weighted Average
Collateral dependent individually analyzed loans	$	8,479	$	3,159	Fair value of collateral	Valuation adjustments	—%	-	55%	12%
Foreclosed assets, net	$	—	$	103	Fair value of collateral	Valuation adjustments	N/A(1)
(1) Quantitative disclosures are not provided for foreclosed assets, net because there were no adjustments made to the appraisal values or stated values during the period.

Schedule of Fair Value Measured on Nonrecurring Basis

The following table presents assets measured at fair value on a nonrecurring basis at the dates indicated:

	Fair Value Measurement at September 30, 2023 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Collateral dependent individually analyzed loans	$	8,479	$	—	$	—	$	8,479

	Fair Value Measurement at December 31, 2022 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Collateral dependent individually analyzed loans	$	3,159	$	—	$	—	$	3,159
Foreclosed assets, net	103		—		—		103

Schedule of Fair Value, by Balance Sheet Grouping

The carrying amount and estimated fair value of financial instruments at September 30, 2023 and December 31, 2022 were as follows:

	September 30, 2023
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	74,788	$	74,788	$	74,788	$	—	$	—
Debt securities available for sale	872,770		872,770		—		872,770		—
Debt securities held to maturity	1,085,751		848,363		—		848,363		—
Loans held for sale	2,528		2,564		—		2,564		—
Loans held for investment, net	4,014,369		3,873,341		—		—		3,873,341
Interest receivable	30,095		30,095		—		30,095		—
FHLB stock	14,869		14,869		—		14,869		—
Derivative assets	31,448		31,448		—		31,430		18
Financial liabilities:
Noninterest bearing deposits	924,213		924,213		924,213		—		—
Interest bearing deposits	4,439,111		4,424,216		3,081,572		1,342,644		—
Short-term borrowings	373,956		373,956		373,956		—		—
Finance leases payable	652		652		—		652		—
FHLB borrowings	6,270		6,269		—		6,269		—
Junior subordinated notes issued to capital trusts	42,249		37,900		—		37,900		—
Subordinated debentures	64,105		62,809		—		62,809		—
Other long-term debt	11,250		11,250		—		11,250		—
Derivative liabilities	23,488		23,488		—		23,488		—

	December 31, 2022
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	86,435	$	86,435	$	86,435	$	—	$	—
Debt securities available for sale	1,153,547		1,153,547		—		1,153,547		—
Debt securities held to maturity	1,129,421		924,894		—		924,894		—
Loans held for sale	612		622		—		622		—
Loans held for investment, net	3,791,324		3,702,527		—		—		3,702,527
Interest receivable	27,090		27,090		—		27,090		—
FHLB stock	19,248		19,248		—		19,248		—
Derivative assets	23,655		23,655		—		23,648		7
Financial liabilities:
Noninterest bearing deposits	1,053,450		1,053,450		1,053,450		—		—
Interest bearing deposits	4,415,492		4,393,315		3,225,787		1,167,528		—
Short-term borrowings	391,873		391,873		391,873		—		—
Finance leases payable	787		787		—		787		—
FHLB borrowings	17,301		17,032		—		17,032		—
Junior subordinated notes issued to capital trusts	42,116		39,023		—		39,023		—
Subordinated debentures	64,006		64,004		—		64,004		—
Other long-term debt	15,000		15,000		—		15,000		—
Derivative liabilities	21,087		21,087		—		21,087		—

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Leases (Tables)

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Schedule of Lease Assets and Liabilities

(in thousands)	Classification	September 30, 2023			December 31, 2022
Operating lease right-of-use assets	Other assets	$	2,593		$	2,492
Finance lease right-of-use asset	Premises and equipment, net	279			350
Total right-of-use assets		$	2,872		$	2,842
Operating lease liability	Other liabilities	$	3,365		$	3,359
Finance lease liability	Long-term debt	652			787
Total lease liabilities		$	4,017		$	4,146
Weighted-average remaining lease term:	Operating leases	9.78 years			9.23 years
	Finance lease	2.92 years			3.67 years
Weighted-average discount rate:	Operating leases	4.33		%	4.23		%
	Finance lease	8.89		%	8.89		%

Schedule of Lease Costs and Other Information

The following table represents lease costs and other lease information. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2023		2022		2023		2022
Lease Costs
Operating lease cost	$	297	$	290	$	885	$	874
Variable lease cost	4		7		15		49
Interest on lease liabilities(1)	15		19		47		58
Amortization of right-of-use assets	24		24		72		72
Net lease cost	$	340	$	340	$	1,019	$	1,053
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	602	$	553	$	1,799	$	1,689
Operating cash flows from finance lease	15		19		47		58
Finance cash flows from finance lease	46		41		135		121
Supplemental non-cash information on lease liabilities:
Right-of-use assets obtained in exchange for new operating lease liabilities	526		599		857		638

(1)Included in long-term debt interest expense in the Company’s consolidated statements of income. All other lease costs in this table are included in occupancy expense of premises, net.

Schedule of Finance Lease Liability Maturity

Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more for the remaining three-months ending December 31, 2023 and the succeeding annual periods were as follows:

(in thousands)	Finance Leases		Operating Leases
December 31, 2023	$	62	$	318
December 31, 2024	250		1,047
December 31, 2025	254		568
December 31, 2026	172		430
December 31, 2027	—		302
Thereafter	—		1,738
Total undiscounted lease payment	$	738	$	4,403
Amounts representing interest	(86)		(1,038)
Lease liability	$	652	$	3,365

Schedule of Operating Lease Liability Maturity

Future minimum payments for finance leases and operating leases with initial or remaining terms of one year or more for the remaining three-months ending December 31, 2023 and the succeeding annual periods were as follows:

(in thousands)	Finance Leases		Operating Leases
December 31, 2023	$	62	$	318
December 31, 2024	250		1,047
December 31, 2025	254		568
December 31, 2026	172		430
December 31, 2027	—		302
Thereafter	—		1,738
Total undiscounted lease payment	$	738	$	4,403
Amounts representing interest	(86)		(1,038)
Lease liability	$	652	$	3,365

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Nature of Business and Significant Accounting Policies (Details) $ in Thousands		9 Months Ended
	Jun. 09, 2022 USD ($)	Sep. 30, 2023 segment
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of reportable segments | segment		1
IOFB
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash consideration | $	$ 46,672

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Business Combinations - Additional Information (Details) - IOFB $ in Thousands	Jun. 09, 2022 USD ($)
Business Acquisition [Line Items]
Interest acquired	100.00%
Cash consideration	$ 46,672
Loans acquired, net	281,300
Purchase price of PCD loans	$ 11,020

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Business Combinations - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands		9 Months Ended
	Jun. 09, 2022	Sep. 30, 2023	Sep. 30, 2022
Assets acquired
Debt securities		$ 0	$ 119,820
Premises and equipment		0	7,363
Core deposit intangible		0	16,500
Other assets		0	3,766
Liabilities assumed
Deposits		0	(463,638)
Bargain Purchase Gain		$ 0	$ 1,257
IOFB
Merger consideration
Cash consideration	$ 46,672
Assets acquired
Cash and due from banks	10,192
Interest earning deposits in banks	67,855
Debt securities	119,820
Loans held for investment	281,326
Premises and equipment	7,363
Core deposit intangible	16,500
Other assets	14,140
Total assets acquired	517,196
Liabilities assumed
Deposits	(463,638)
Other liabilities	(3,117)
Total liabilities assumed	(466,755)
Identifiable net assets acquired, at fair value	50,441
Bargain Purchase Gain	$ 3,769

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Business Combinations - Summary of PCD Loans at Acquisition (Details) - USD ($) $ in Thousands		9 Months Ended
	Jun. 09, 2022	Sep. 30, 2022
Business Acquisition [Line Items]
PCD ACL at acquisition		$ (3,371)
IOFB
Business Acquisition [Line Items]
Par value of PCD loans acquired	$ 15,396
PCD ACL at acquisition	(3,371)
Non-credit discount on PCD loans	(1,005)
Purchase price of PCD loans	$ 11,020

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Business Combinations - Pro Forma Information (Details) - IOFB - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Business Acquisition [Line Items]
Total revenues	$ 55,954	$ 165,053
Net Income	$ 17,111	$ 46,663
EPS - basic (in dollars per share)	$ 1.10	$ 2.98
EPS - diluted (in dollars per share)	$ 1.09	$ 2.97

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Business Combinations - Acquisition-Related Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Noninterest Expense
Compensation and employee benefits	$ 18,558	$ 20,046	$ 58,551	$ 57,665
Occupancy expense of premises, net	2,405	2,577	7,725	7,609
Equipment	2,123	2,358	6,729	6,366
Legal and professional	1,678	2,012	5,096	6,800
Data processing	1,504	1,731	4,388	4,199
Communications	206	302	727	840
Other	2,043	2,212	6,488	6,056
DNVB and IOFB
Noninterest Expense
Compensation and employee benefits	0	132	70	282
Occupancy expense of premises, net	0	0	0	1
Equipment	0	14	0	25
Legal and professional	11	193	11	894
Data processing	0	304	65	380
Marketing	0	90	0	162
Communications	0	0	0	3
Other	0	30	1	45
Total acquisition-related expenses	$ 11	$ 763	$ 147	$ 1,792

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Debt Securities - Additional Information (Details) $ in Thousands		9 Months Ended
	Jan. 01, 2022 USD ($)	Sep. 30, 2023 USD ($) security	Dec. 31, 2022 USD ($) security
Schedule of Available-for-sale Securities
AFS transferred to held-to-maturity classifications, fair value	$ 1,250,000
Net unrealized after tax loss from transfer of AFS to held-to-maturity classification	$ 11,500	$ 7,400
Debt securities available for sale		872,770	$ 1,153,547
Interest receivable		$ 30,095	$ 27,090
Securities in continuous unrealized loss position | security		395	594
Accumulated unrealized losses		$ 108,824	$ 108,356
Asset Pledged as Collateral without Right
Schedule of Available-for-sale Securities
Debt securities available for sale		1,270,000	690,200
Debt Securities Available For Sale Securities
Schedule of Available-for-sale Securities
Interest receivable		6,800	7,600
Debt, Held to Maturity Securities
Schedule of Available-for-sale Securities
Interest receivable		3,500	3,700
State and political subdivisions
Schedule of Available-for-sale Securities
Debt securities available for sale		$ 162,468	$ 285,356
Securities in continuous unrealized loss position | security		200	380
Accumulated unrealized losses		$ 14,833	$ 18,244
Mortgage-backed securities
Schedule of Available-for-sale Securities
Debt securities available for sale		$ 5,327	$ 5,944
Securities in continuous unrealized loss position | security		29	27
Accumulated unrealized losses		$ 247	$ 232
Collateralized mortgage obligations
Schedule of Available-for-sale Securities
Debt securities available for sale		$ 131,923	$ 147,193
Securities in continuous unrealized loss position | security		20	20
Accumulated unrealized losses		$ 27,421	$ 25,375
Mortgage backed securities and collateralized mortgage obligations
Schedule of Available-for-sale Securities
Accumulated unrealized losses		27,700
Corporate debt securities
Schedule of Available-for-sale Securities
Debt securities available for sale		$ 520,599	$ 707,709
Securities in continuous unrealized loss position | security		142	159
Accumulated unrealized losses		$ 66,073	$ 64,252

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Debt Securities - Schedule of Available for Sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Schedule of Available-for-sale Securities
Amortized Cost	$ 981,527	$ 1,261,740
Gross Unrealized Gains	67	163
Gross Unrealized Losses	108,824	108,356
Allowance for Credit Loss related to Debt Securities	0	0
Debt securities available for sale	872,770	1,153,547
Collateralized loan obligations
Schedule of Available-for-sale Securities
Amortized Cost	52,697
Gross Unrealized Gains	6
Gross Unrealized Losses	250
Allowance for Credit Loss related to Debt Securities	0
Debt securities available for sale	52,453
U.S. Government agencies and corporations
Schedule of Available-for-sale Securities
Amortized Cost		7,598
Gross Unrealized Gains		0
Gross Unrealized Losses		253
Allowance for Credit Loss related to Debt Securities		0
Debt securities available for sale		7,345
State and political subdivisions
Schedule of Available-for-sale Securities
Amortized Cost	177,300	303,573
Gross Unrealized Gains	1	27
Gross Unrealized Losses	14,833	18,244
Allowance for Credit Loss related to Debt Securities	0	0
Debt securities available for sale	162,468	285,356
Mortgage-backed securities
Schedule of Available-for-sale Securities
Amortized Cost	5,574	6,165
Gross Unrealized Gains	0	11
Gross Unrealized Losses	247	232
Allowance for Credit Loss related to Debt Securities	0	0
Debt securities available for sale	5,327	5,944
Collateralized mortgage obligations
Schedule of Available-for-sale Securities
Amortized Cost	159,344	172,568
Gross Unrealized Gains	0	0
Gross Unrealized Losses	27,421	25,375
Allowance for Credit Loss related to Debt Securities	0	0
Debt securities available for sale	131,923	147,193
Corporate debt securities
Schedule of Available-for-sale Securities
Amortized Cost	586,612	771,836
Gross Unrealized Gains	60	125
Gross Unrealized Losses	66,073	64,252
Allowance for Credit Loss related to Debt Securities	0	0
Debt securities available for sale	$ 520,599	$ 707,709

XML

Debt Securities - Schedule of Held to Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Jan. 01, 2022
Schedule of Held-to-maturity Securities
Amortized cost	$ 1,085,751	$ 1,129,421
Gross Unrealized Gains	0	0
Gross Unrealized Losses	237,388	204,527
Allowance for Credit Loss related to Debt Securities	0	0
Fair Value	848,363	924,894
State and political subdivisions
Schedule of Held-to-maturity Securities
Amortized cost	532,885	538,746
Gross Unrealized Gains	0	0	$ 223
Gross Unrealized Losses	100,821	88,349
Allowance for Credit Loss related to Debt Securities	0	0
Fair Value	432,064	450,397
Mortgage-backed securities
Schedule of Held-to-maturity Securities
Amortized cost	76,310	81,032
Gross Unrealized Gains	0	0	35
Gross Unrealized Losses	15,863	12,851
Allowance for Credit Loss related to Debt Securities	0	0
Fair Value	60,447	68,181
Collateralized mortgage obligations
Schedule of Held-to-maturity Securities
Amortized cost	476,556	509,643
Gross Unrealized Gains	0	0
Gross Unrealized Losses	120,704	103,327	$ 10,200
Allowance for Credit Loss related to Debt Securities	0	0
Fair Value	$ 355,852	$ 406,316

XML

Debt Securities - Available for Sale Securities in Continuous Loss Position (Details) $ in Thousands	Sep. 30, 2023 USD ($) security	Dec. 31, 2022 USD ($) security
Schedule of Available-for-sale Securities
Number of Securities | security	395	594
Less than 12 Months, Fair Value	$ 68,780	$ 705,489
Less than 12 Months, Unrealized Losses	1,327	43,837
12 Months or More, Fair Value	764,243	381,157
12 Months or More, Unrealized Loss	107,497	64,519
Fair Value	833,023	1,086,646
Unrealized Losses	$ 108,824	$ 108,356
Collateralized loan obligations
Schedule of Available-for-sale Securities
Number of Securities | security	4
Less than 12 Months, Fair Value	$ 39,870
Less than 12 Months, Unrealized Losses	250
12 Months or More, Fair Value	0
12 Months or More, Unrealized Loss	0
Fair Value	39,870
Unrealized Losses	$ 250
U.S. Government agencies and corporations
Schedule of Available-for-sale Securities
Number of Securities | security		8
Less than 12 Months, Fair Value		$ 7,345
Less than 12 Months, Unrealized Losses		253
12 Months or More, Fair Value		0
12 Months or More, Unrealized Loss		0
Fair Value		7,345
Unrealized Losses		$ 253
State and political subdivisions
Schedule of Available-for-sale Securities
Number of Securities | security	200	380
Less than 12 Months, Fair Value	$ 17,776	$ 248,339
Less than 12 Months, Unrealized Losses	969	14,553
12 Months or More, Fair Value	141,021	20,631
12 Months or More, Unrealized Loss	13,864	3,691
Fair Value	158,797	268,970
Unrealized Losses	$ 14,833	$ 18,244
Mortgage-backed securities
Schedule of Available-for-sale Securities
Number of Securities | security	29	27
Less than 12 Months, Fair Value	$ 376	$ 5,323
Less than 12 Months, Unrealized Losses	6	231
12 Months or More, Fair Value	4,910	45
12 Months or More, Unrealized Loss	241	1
Fair Value	5,286	5,368
Unrealized Losses	$ 247	$ 232
Collateralized mortgage obligations
Schedule of Available-for-sale Securities
Number of Securities | security	20	20
Less than 12 Months, Fair Value	$ 6,628	$ 75,041
Less than 12 Months, Unrealized Losses	27	7,121
12 Months or More, Fair Value	125,295	72,152
12 Months or More, Unrealized Loss	27,394	18,254
Fair Value	131,923	147,193
Unrealized Losses	$ 27,421	$ 25,375
Corporate debt securities
Schedule of Available-for-sale Securities
Number of Securities | security	142	159
Less than 12 Months, Fair Value	$ 4,130	$ 369,441
Less than 12 Months, Unrealized Losses	75	21,679
12 Months or More, Fair Value	493,017	288,329
12 Months or More, Unrealized Loss	65,998	42,573
Fair Value	497,147	657,770
Unrealized Losses	$ 66,073	$ 64,252

XML

Debt Securities - Proceeds and Gross Realized Gains (Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Debt Securities [Abstract]
Proceeds from sales of debt securities available for sale	$ 0	$ 17,570	$ 218,667	$ 129,823
Gross realized losses from sales of debt securities available for sale	0	(167)	(13,170)	(167)
Net realized gain from sales of debt securities available for sale	0	(167)	(13,170)	(167)
Net gains from call or maturity of debt securities	$ 79	$ 4	$ 77	$ 439

XML

Debt Securities - Investments Classified by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Amortized Cost
Due in one year or less, Amortized Cost	$ 53,730
Due after one year through five years, Amortized Cost	522,893
Due after five years through ten years, Amortized Cost	158,373
Due after ten years, Amortized Cost	28,916
Total maturing securities, Amortized Cost	763,912
Amortized Cost	981,527	$ 1,261,740
Fair Value
Due in one year or less, estimated fair value	52,581
Due after one year through five years, estimated fair value	473,528
Due after five years through ten years, estimated fair value	133,485
Due after ten years, estimated fair value	23,473
Total maturing securities, fair value	683,067
Debt securities available for sale at fair value	872,770	1,153,547
Amortized Cost
Due in one year or less, Amortized Cost	2,563
Due after one year through five years, Amortized Cost	132,842
Due after five years through ten years, Amortized Cost	232,569
Due after ten years, Amortized Cost	164,911
Total maturing securities, Amortized Cost	532,885
Held to maturity securities at Amortized Cost	1,085,751	1,129,421
Fair Value
Due in one year or less, estimated fair value	2,495
Due after one year through five years, estimated fair value	117,757
Due after five years through ten years, estimated fair value	186,814
Due after ten years, estimated fair value	124,998
Total maturing securities, fair value	432,064
Debt securities held to maturity	848,363	924,894
Collateralized loan obligations
Amortized Cost
Amortized Cost	52,697
Fair Value
Debt securities available for sale at fair value	52,453
Amortized Cost
Held to maturity securities at Amortized Cost	0
Fair Value
Debt securities held to maturity	0
Mortgage-backed securities
Amortized Cost
Amortized Cost	5,574	6,165
Fair Value
Debt securities available for sale at fair value	5,327	5,944
Amortized Cost
Held to maturity securities at Amortized Cost	76,310	81,032
Fair Value
Debt securities held to maturity	60,447	68,181
Collateralized mortgage obligations
Amortized Cost
Amortized Cost	159,344	172,568
Fair Value
Debt securities available for sale at fair value	131,923	147,193
Amortized Cost
Held to maturity securities at Amortized Cost	476,556	509,643
Fair Value
Debt securities held to maturity	$ 355,852	$ 406,316

XML

Loans Receivable and the Allowance for Credit Losses - Composition of Loans by Lending Classification (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	$ 4,065,969		$ 3,840,524
Allowance for credit losses	(51,600)	$ (50,400)	(49,200)	$ (52,100)	$ (52,350)	$ (48,700)
Total loans held for investment, net	4,014,369		3,791,324
Asset Pledged as Collateral without Right | FHLB borrowings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	1,140,000		1,010,000
Agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	111,950		115,320
Allowance for credit losses	(537)	(617)	(923)	(981)	(987)	(667)
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	1,078,773		1,055,162
Allowance for credit losses	(22,063)	(22,921)	(22,855)	(24,256)	(21,166)	(17,294)
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	2,176,017		1,980,018
Allowance for credit losses	(23,787)	(21,911)	(20,123)	(20,948)	(24,399)	(26,120)
Commercial real estate | Construction & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	331,868		270,991
Commercial real estate | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	182,621		183,913
Commercial real estate | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	337,509		252,129
Commercial real estate | Commercial real estate-other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	1,324,019		1,272,985
Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	630,046		614,428
Allowance for credit losses	(4,643)	(4,393)	(4,678)	(5,308)	(5,174)	(4,010)
Residential real estate | One- to four- family first liens
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	456,771		451,210
Residential real estate | One- to four- family junior liens
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	173,275		163,218
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	69,183		75,596
Allowance for credit losses	$ (570)	$ (558)	$ (621)	$ (607)	$ (624)	$ (609)

XML

Loans Receivable and the Allowance for Credit Losses - Amortized Cost Basis Based on Delinquency Status (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	$ 4,065,969	$ 3,840,524
90 Days or More Past Due And Accruing	100	565
Current
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	4,050,868	3,822,849
30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	4,761	10,999
60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	2,389	1,205
90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	7,951	5,471
Agricultural
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	111,950	115,320
90 Days or More Past Due And Accruing	0	0
Agricultural | Current
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	111,713	114,922
Agricultural | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	0	100
Agricultural | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	13	0
Agricultural | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	224	298
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	1,078,773	1,055,162
90 Days or More Past Due And Accruing	0	0
Commercial and industrial | Current
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	1,077,276	1,052,406
Commercial and industrial | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	616	922
Commercial and industrial | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	31	111
Commercial and industrial | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	850	1,723
Commercial real estate
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	2,176,017	1,980,018
90 Days or More Past Due And Accruing	0	0
Commercial real estate | Current
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	2,170,232	1,972,023
Commercial real estate | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	59	6,389
Commercial real estate | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	0	45
Commercial real estate | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	5,726	1,561
Commercial real estate | Construction & development
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	331,868	270,991
90 Days or More Past Due And Accruing	0	0
Commercial real estate | Construction & development | Current
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	331,868	270,905
Commercial real estate | Construction & development | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	0	86
Commercial real estate | Construction & development | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	0	0
Commercial real estate | Construction & development | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	0	0
Commercial real estate | Farmland
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	182,621	183,913
90 Days or More Past Due And Accruing	0	0
Commercial real estate | Farmland | Current
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	181,352	182,115
Commercial real estate | Farmland | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	30	729
Commercial real estate | Farmland | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	0	0
Commercial real estate | Farmland | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	1,239	1,069
Commercial real estate | Multifamily
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	337,509	252,129
90 Days or More Past Due And Accruing	0	0
Commercial real estate | Multifamily | Current
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	337,509	252,129
Commercial real estate | Multifamily | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	0	0
Commercial real estate | Multifamily | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	0	0
Commercial real estate | Multifamily | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	0	0
Commercial real estate | Commercial real estate-other
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	1,324,019	1,272,985
90 Days or More Past Due And Accruing	0	0
Commercial real estate | Commercial real estate-other | Current
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	1,319,503	1,266,874
Commercial real estate | Commercial real estate-other | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	29	5,574
Commercial real estate | Commercial real estate-other | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	0	45
Commercial real estate | Commercial real estate-other | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	4,487	492
Residential real estate
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	630,046	614,428
90 Days or More Past Due And Accruing	100	565
Residential real estate | Current
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	622,778	608,055
Residential real estate | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	3,811	3,478
Residential real estate | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	2,309	1,032
Residential real estate | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	1,148	1,863
Residential real estate | One- to four- family first liens
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	456,771	451,210
90 Days or More Past Due And Accruing	100	565
Residential real estate | One- to four- family first liens | Current
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	449,842	446,066
Residential real estate | One- to four- family first liens | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	3,609	3,177
Residential real estate | One- to four- family first liens | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	2,286	954
Residential real estate | One- to four- family first liens | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	1,034	1,013
Residential real estate | One- to four- family junior liens
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	173,275	163,218
90 Days or More Past Due And Accruing	0	0
Residential real estate | One- to four- family junior liens | Current
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	172,936	161,989
Residential real estate | One- to four- family junior liens | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	202	301
Residential real estate | One- to four- family junior liens | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	23	78
Residential real estate | One- to four- family junior liens | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	114	850
Consumer
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	69,183	75,596
90 Days or More Past Due And Accruing	0	0
Consumer | Current
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	68,869	75,443
Consumer | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	275	110
Consumer | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	36	17
Consumer | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	$ 3	$ 26

XML

Loans Receivable and the Allowance for Credit Losses - Nonaccrual Status and Interest Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Nonaccrual	$ 28,887		$ 28,887		$ 15,256
Nonaccrual with no Allowance for Credit Losses	15,314		15,314		9,902
90 Days or More Past Due And Accruing	100		100		565
Interest Income Recognized on Nonaccrual	93	$ 70	186	$ 345
Agricultural
Financing Receivable, Past Due [Line Items]
Nonaccrual	240		240		377
Nonaccrual with no Allowance for Credit Losses	224		224		281
90 Days or More Past Due And Accruing	0		0		0
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Nonaccrual	18,472		18,472		2,728
Nonaccrual with no Allowance for Credit Losses	12,585		12,585		1,049
90 Days or More Past Due And Accruing	0		0		0
Commercial real estate
Financing Receivable, Past Due [Line Items]
Nonaccrual	6,853		6,853		8,675
Nonaccrual with no Allowance for Credit Losses	1,959		1,959		7,644
90 Days or More Past Due And Accruing	0		0		0
Commercial real estate | Construction & development
Financing Receivable, Past Due [Line Items]
Nonaccrual	0		0		0
Nonaccrual with no Allowance for Credit Losses	0		0		0
90 Days or More Past Due And Accruing	0		0		0
Commercial real estate | Farmland
Financing Receivable, Past Due [Line Items]
Nonaccrual	1,736		1,736		2,278
Nonaccrual with no Allowance for Credit Losses	1,590		1,590		1,997
90 Days or More Past Due And Accruing	0		0		0
Commercial real estate | Multifamily
Financing Receivable, Past Due [Line Items]
Nonaccrual	0		0		0
Nonaccrual with no Allowance for Credit Losses	0		0		0
90 Days or More Past Due And Accruing	0		0		0
Commercial real estate | Commercial real estate-other
Financing Receivable, Past Due [Line Items]
Nonaccrual	5,117		5,117		6,397
Nonaccrual with no Allowance for Credit Losses	369		369		5,647
90 Days or More Past Due And Accruing	0		0		0
Residential real estate
Financing Receivable, Past Due [Line Items]
Nonaccrual	3,308		3,308		3,440
Nonaccrual with no Allowance for Credit Losses	546		546		928
90 Days or More Past Due And Accruing	100		100		565
Residential real estate | One- to four- family first liens
Financing Receivable, Past Due [Line Items]
Nonaccrual	2,339		2,339		2,275
Nonaccrual with no Allowance for Credit Losses	546		546		928
90 Days or More Past Due And Accruing	100		100		565
Residential real estate | One- to four- family junior liens
Financing Receivable, Past Due [Line Items]
Nonaccrual	969		969		1,165
Nonaccrual with no Allowance for Credit Losses	0		0		0
90 Days or More Past Due And Accruing	0		0		0
Consumer
Financing Receivable, Past Due [Line Items]
Nonaccrual	14		14		36
Nonaccrual with no Allowance for Credit Losses	0		0		0
90 Days or More Past Due And Accruing	$ 0		$ 0		$ 0

XML

Loans Receivable and the Allowance for Credit Losses - Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
2023	$ 493,673		$ 493,673		$ 1,067,422
2022	1,068,478		1,068,478		947,999
2021	867,840		867,840		711,994
2020	630,780		630,780		214,726
2019	184,714		184,714		123,339
Prior	408,885		408,885		348,634
Revolving Loans	411,599		411,599		426,410
Loans held for investment, net of unearned income	4,065,969		4,065,969		3,840,524
Year-to-date Current Period Gross Write-offs
2023			30
2022			707
2021			153
2020			135
2019			442
Prior			914
Revolving Loans			0
Total	735	$ 970	2,381	$ 4,041
Substandard / Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2023	41,461		41,461		69,880
2022	49,925		49,925		41,887
2021	31,103		31,103		16,872
2020	12,856		12,856		6,547
2019	4,270		4,270		5,403
Prior	15,233		15,233		12,971
Revolving Loans	86,628		86,628		84,053
Loans held for investment, net of unearned income	241,476		241,476		237,613
Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0		0		0
2022	0		0		25
2021	0		0		47
2020	31		31		188
2019	208		208		760
Prior	743		743		81
Revolving Loans	0		0		100
Loans held for investment, net of unearned income	982		982		1,201
Agricultural
Financing Receivable, Credit Quality Indicator [Line Items]
2023	11,939		11,939		20,470
2022	13,847		13,847		14,169
2021	10,436		10,436		5,879
2020	3,584		3,584		2,923
2019	1,367		1,367		946
Prior	1,903		1,903		1,969
Revolving Loans	68,874		68,874		68,964
Loans held for investment, net of unearned income	111,950		111,950		115,320
Year-to-date Current Period Gross Write-offs
2023			0
2022			8
2021			1
2020			17
2019			0
Prior			0
Revolving Loans			0
Total	25	248	26	249
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2023	114,794		114,794		267,031
2022	246,348		246,348		236,003
2021	215,928		215,928		158,204
2020	135,472		135,472		49,547
2019	36,201		36,201		31,535
Prior	150,041		150,041		136,326
Revolving Loans	179,989		179,989		176,516
Loans held for investment, net of unearned income	1,078,773		1,078,773		1,055,162
Year-to-date Current Period Gross Write-offs
2023			30
2022			256
2021			143
2020			115
2019			431
Prior			45
Revolving Loans			0
Total	511	280	1,020	843
Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Loans held for investment, net of unearned income	2,176,017		2,176,017		1,980,018
Year-to-date Current Period Gross Write-offs
Total	0	135	830	2,319
Commercial real estate | Construction & development
Financing Receivable, Credit Quality Indicator [Line Items]
2023	69,354		69,354		146,665
2022	198,868		198,868		74,331
2021	47,996		47,996		19,324
2020	3,532		3,532		989
2019	833		833		1,058
Prior	1,119		1,119		555
Revolving Loans	10,166		10,166		28,069
Loans held for investment, net of unearned income	331,868		331,868		270,991
Year-to-date Current Period Gross Write-offs
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving Loans			0
Total			0
Commercial real estate | Farmland
Financing Receivable, Credit Quality Indicator [Line Items]
2023	20,147		20,147		58,457
2022	53,751		53,751		57,005
2021	52,075		52,075		31,406
2020	26,645		26,645		8,402
2019	7,761		7,761		10,090
Prior	19,542		19,542		14,914
Revolving Loans	2,700		2,700		3,639
Loans held for investment, net of unearned income	182,621		182,621		183,913
Year-to-date Current Period Gross Write-offs
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving Loans			0
Total			0
Commercial real estate | Multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2023	28,961		28,961		32,018
2022	56,359		56,359		101,632
2021	119,924		119,924		86,474
2020	102,854		102,854		17,137
2019	16,699		16,699		8,480
Prior	12,679		12,679		6,339
Revolving Loans	33		33		49
Loans held for investment, net of unearned income	337,509		337,509		252,129
Year-to-date Current Period Gross Write-offs
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			0
Revolving Loans			0
Total			0
Commercial real estate | Commercial real estate-other
Financing Receivable, Credit Quality Indicator [Line Items]
2023	153,056		153,056		332,363
2022	320,148		320,148		318,364
2021	295,148		295,148		329,315
2020	289,515		289,515		103,067
2019	95,121		95,121		42,375
Prior	119,134		119,134		93,919
Revolving Loans	51,897		51,897		53,582
Loans held for investment, net of unearned income	1,324,019		1,324,019		1,272,985
Year-to-date Current Period Gross Write-offs
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			830
Revolving Loans			0
Total			830
Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Loans held for investment, net of unearned income	630,046		630,046		614,428
Year-to-date Current Period Gross Write-offs
Total	21	52	54	90
Residential real estate | One- to four- family first liens
Financing Receivable, Credit Quality Indicator [Line Items]
2023	53,961		53,961		140,538
2022	129,232		129,232		104,583
2021	95,230		95,230		64,473
2020	56,291		56,291		25,926
2019	22,254		22,254		22,692
Prior	88,491		88,491		81,560
Revolving Loans	11,312		11,312		11,438
Loans held for investment, net of unearned income	456,771		456,771		451,210
Year-to-date Current Period Gross Write-offs
2023			0
2022			0
2021			0
2020			0
2019			0
Prior			35
Revolving Loans			0
Total			35
Residential real estate | One- to four- family first liens | Substandard / Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2023					175
2022					438
2021					174
2020					175
2019					674
Prior					2,891
Revolving Loans					0
Loans held for investment, net of unearned income					4,527
Residential real estate | One- to four- family first liens | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2023					0
2022					0
2021					0
2020					0
2019					0
Prior					0
Revolving Loans					0
Loans held for investment, net of unearned income					0
Residential real estate | One- to four- family junior liens
Financing Receivable, Credit Quality Indicator [Line Items]
2023	20,458		20,458		37,296
2022	31,327		31,327		22,931
2021	19,622		19,622		8,937
2020	7,669		7,669		3,237
2019	2,652		2,652		4,513
Prior	9,062		9,062		6,406
Revolving Loans	82,485		82,485		79,898
Loans held for investment, net of unearned income	173,275		173,275		163,218
Year-to-date Current Period Gross Write-offs
2023			0
2022			19
2021			0
2020			0
2019			0
Prior			0
Revolving Loans			0
Total			19
Residential real estate | One- to four- family junior liens | Substandard / Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2023	20,458		20,458		37,296
2022	31,327		31,327		22,908
2021	19,622		19,622		8,906
2020	7,643		7,643		3,058
2019	2,449		2,449		3,757
Prior	8,322		8,322		6,330
Revolving Loans	82,485		82,485		79,798
Loans held for investment, net of unearned income	172,306		172,306		162,053
Residential real estate | One- to four- family junior liens | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0		0		0
2022	0		0		23
2021	0		0		31
2020	26		26		179
2019	203		203		756
Prior	740		740		76
Revolving Loans	0		0		100
Loans held for investment, net of unearned income	969		969		1,165
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2023	21,003		21,003		32,584
2022	18,598		18,598		18,981
2021	11,481		11,481		7,982
2020	5,218		5,218		3,498
2019	1,826		1,826		1,650
Prior	6,914		6,914		6,646
Revolving Loans	4,143		4,143		4,255
Loans held for investment, net of unearned income	69,183		69,183		75,596
Year-to-date Current Period Gross Write-offs
2023			0
2022			424
2021			9
2020			3
2019			11
Prior			4
Revolving Loans			0
Total	178	$ 255	451	$ 540
Consumer | Substandard / Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2023	21,003		21,003		32,584
2022	18,598		18,598		18,979
2021	11,481		11,481		7,966
2020	5,213		5,213		3,489
2019	1,821		1,821		1,646
Prior	6,911		6,911		6,641
Revolving Loans	4,143		4,143		4,255
Loans held for investment, net of unearned income	69,170		69,170		75,560
Consumer | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0		0		0
2022	0		0		2
2021	0		0		16
2020	5		5		9
2019	5		5		4
Prior	3		3		5
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	13		13		36
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2023	442,328		442,328		975,687
2022	980,891		980,891		883,225
2021	796,680		796,680		649,601
2020	559,087		559,087		179,713
2019	144,078		144,078		93,541
Prior	325,932		325,932		295,220
Revolving Loans	295,436		295,436		321,166
Loans held for investment, net of unearned income	3,544,432		3,544,432		3,398,153
Pass | Agricultural
Financing Receivable, Credit Quality Indicator [Line Items]
2023	11,277		11,277		20,279
2022	13,087		13,087		12,511
2021	9,451		9,451		5,398
2020	3,268		3,268		2,883
2019	1,359		1,359		939
Prior	1,155		1,155		1,063
Revolving Loans	63,474		63,474		65,395
Loans held for investment, net of unearned income	103,071		103,071		108,468
Pass | Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2023	111,886		111,886		262,500
2022	243,011		243,011		232,263
2021	212,836		212,836		151,567
2020	129,482		129,482		48,199
2019	27,383		27,383		27,680
Prior	119,645		119,645		115,877
Revolving Loans	161,886		161,886		163,205
Loans held for investment, net of unearned income	1,006,129		1,006,129		1,001,291
Pass | Commercial real estate | Construction & development
Financing Receivable, Credit Quality Indicator [Line Items]
2023	69,354		69,354		144,597
2022	198,619		198,619		73,832
2021	47,522		47,522		19,324
2020	3,532		3,532		989
2019	833		833		1,058
Prior	1,118		1,118		549
Revolving Loans	9,754		9,754		28,069
Loans held for investment, net of unearned income	330,732		330,732		268,418
Pass | Commercial real estate | Farmland
Financing Receivable, Credit Quality Indicator [Line Items]
2023	17,318		17,318		55,251
2022	50,872		50,872		52,802
2021	48,074		48,074		28,744
2020	19,438		19,438		7,266
2019	6,703		6,703		8,406
Prior	16,056		16,056		12,895
Revolving Loans	1,866		1,866		1,946
Loans held for investment, net of unearned income	160,327		160,327		167,310
Pass | Commercial real estate | Multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2023	28,961		28,961		31,018
2022	55,115		55,115		93,907
2021	112,033		112,033		84,573
2020	83,413		83,413		17,137
2019	8,800		8,800		2,549
Prior	5,654		5,654		5,161
Revolving Loans	33		33		49
Loans held for investment, net of unearned income	294,009		294,009		234,394
Pass | Commercial real estate | Commercial real estate-other
Financing Receivable, Credit Quality Indicator [Line Items]
2023	151,212		151,212		322,753
2022	292,139		292,139		314,376
2021	272,055		272,055		296,368
2020	264,462		264,462		79,408
2019	78,764		78,764		31,041
Prior	97,815		97,815		81,708
Revolving Loans	47,111		47,111		51,064
Loans held for investment, net of unearned income	1,203,558		1,203,558		1,176,718
Pass | Residential real estate | One- to four- family first liens | Substandard / Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2023	52,320		52,320		139,289
2022	128,048		128,048		103,534
2021	94,709		94,709		63,627
2020	55,492		55,492		23,831
2019	20,236		20,236		21,868
Prior	84,489		84,489		77,967
Revolving Loans	11,312		11,312		11,438
Loans held for investment, net of unearned income	446,606		446,606		441,554
Special mention / watch
Financing Receivable, Credit Quality Indicator [Line Items]
2023	4,932		4,932		19,895
2022	32,006		32,006		11,324
2021	26,088		26,088		22,534
2020	35,236		35,236		12,913
2019	22,147		22,147		10,742
Prior	20,177		20,177		12,491
Revolving Loans	22,636		22,636		18,165
Loans held for investment, net of unearned income	163,222		163,222		108,064
Special mention / watch | Agricultural
Financing Receivable, Credit Quality Indicator [Line Items]
2023	268		268		143
2022	609		609		1,012
2021	801		801		115
2020	102		102		36
2019	6		6		0
Prior	523		523		604
Revolving Loans	3,722		3,722		1,655
Loans held for investment, net of unearned income	6,031		6,031		3,565
Special mention / watch | Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2023	1,437		1,437		3,975
2022	766		766		3,574
2021	652		652		5,465
2020	4,646		4,646		592
2019	8,101		8,101		3,299
Prior	7,825		7,825		1,864
Revolving Loans	13,751		13,751		12,299
Loans held for investment, net of unearned income	37,178		37,178		31,068
Special mention / watch | Commercial real estate | Construction & development
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0		0		1,787
2022	0		0		499
2021	474		474		0
2020	0		0		0
2019	0		0		0
Prior	0		0		0
Revolving Loans	412		412		0
Loans held for investment, net of unearned income	886		886		2,286
Special mention / watch | Commercial real estate | Farmland
Financing Receivable, Credit Quality Indicator [Line Items]
2023	1,237		1,237		3,058
2022	2,761		2,761		2,229
2021	2,456		2,456		1,470
2020	6,104		6,104		0
2019	0		0		225
Prior	1,180		1,180		21
Revolving Loans	804		804		1,693
Loans held for investment, net of unearned income	14,542		14,542		8,696
Special mention / watch | Commercial real estate | Multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0		0		1,000
2022	1,244		1,244		0
2021	280		280		1,567
2020	19,112		19,112		0
2019	7,899		7,899		5,931
Prior	7,025		7,025		1,178
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	35,560		35,560		9,676
Special mention / watch | Commercial real estate | Commercial real estate-other
Financing Receivable, Credit Quality Indicator [Line Items]
2023	1,520		1,520		8,858
2022	25,905		25,905		3,399
2021	21,389		21,389		13,245
2020	4,639		4,639		10,365
2019	4,290		4,290		1,137
Prior	3,301		3,301		8,122
Revolving Loans	3,947		3,947		2,518
Loans held for investment, net of unearned income	64,991		64,991		47,644
Special mention / watch | Residential real estate | One- to four- family first liens
Financing Receivable, Credit Quality Indicator [Line Items]
2023	470		470		1,074
2022	721		721		611
2021	36		36		672
2020	633		633		1,920
2019	1,851		1,851		150
Prior	323		323		702
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	4,034		4,034		5,129
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2023	4,952		4,952		1,960
2022	5,656		5,656		11,538
2021	13,969		13,969		22,940
2020	23,570		23,570		15,365
2019	14,011		14,011		12,893
Prior	46,800		46,800		27,871
Revolving Loans	6,899		6,899		2,926
Loans held for investment, net of unearned income	115,857		115,857		95,493
Substandard | Agricultural
Financing Receivable, Credit Quality Indicator [Line Items]
2023	394		394		48
2022	151		151		646
2021	184		184		366
2020	214		214		4
2019	2		2		7
Prior	225		225		302
Revolving Loans	1,678		1,678		1,914
Loans held for investment, net of unearned income	2,848		2,848		3,287
Substandard | Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2023	1,471		1,471		556
2022	2,571		2,571		166
2021	2,440		2,440		1,172
2020	1,344		1,344		756
2019	717		717		556
Prior	22,571		22,571		18,585
Revolving Loans	4,352		4,352		1,012
Loans held for investment, net of unearned income	35,466		35,466		22,803
Substandard | Commercial real estate | Construction & development
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0		0		281
2022	249		249		0
2021	0		0		0
2020	0		0		0
2019	0		0		0
Prior	1		1		6
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	250		250		287
Substandard | Commercial real estate | Farmland
Financing Receivable, Credit Quality Indicator [Line Items]
2023	1,592		1,592		148
2022	118		118		1,974
2021	1,545		1,545		1,192
2020	1,103		1,103		1,136
2019	1,058		1,058		1,459
Prior	2,306		2,306		1,998
Revolving Loans	30		30		0
Loans held for investment, net of unearned income	7,752		7,752		7,907
Substandard | Commercial real estate | Multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0		0		0
2022	0		0		7,725
2021	7,611		7,611		334
2020	329		329		0
2019	0		0		0
Prior	0		0		0
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	7,940		7,940		8,059
Substandard | Commercial real estate | Commercial real estate-other
Financing Receivable, Credit Quality Indicator [Line Items]
2023	324		324		752
2022	2,104		2,104		589
2021	1,704		1,704		19,702
2020	20,414		20,414		13,294
2019	12,067		12,067		10,197
Prior	18,018		18,018		4,089
Revolving Loans	839		839		0
Loans held for investment, net of unearned income	55,470		55,470		48,623
Substandard | Residential real estate | One- to four- family first liens | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2023	1,171		1,171
2022	463		463
2021	485		485
2020	166		166
2019	167		167
Prior	3,679		3,679
Revolving Loans	0		0
Loans held for investment, net of unearned income	6,131		6,131
Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0		0		0
2022	0		0		0
2021	0		0		0
2020	0		0		0
2019	0		0		0
Prior	0		0		0
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	0		0		0
Doubtful | Agricultural
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0		0		0
2022	0		0		0
2021	0		0		0
2020	0		0		0
2019	0		0		0
Prior	0		0		0
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	0		0		0
Doubtful | Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0		0		0
2022	0		0		0
2021	0		0		0
2020	0		0		0
2019	0		0		0
Prior	0		0		0
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	0		0		0
Doubtful | Commercial real estate | Construction & development
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0		0		0
2022	0		0		0
2021	0		0		0
2020	0		0		0
2019	0		0		0
Prior	0		0		0
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	0		0		0
Doubtful | Commercial real estate | Farmland
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0		0		0
2022	0		0		0
2021	0		0		0
2020	0		0		0
2019	0		0		0
Prior	0		0		0
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	0		0		0
Doubtful | Commercial real estate | Multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0		0		0
2022	0		0		0
2021	0		0		0
2020	0		0		0
2019	0		0		0
Prior	0		0		0
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	0		0		0
Doubtful | Commercial real estate | Commercial real estate-other
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0		0		0
2022	0		0		0
2021	0		0		0
2020	0		0		0
2019	0		0		0
Prior	0		0		0
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	0		0		$ 0
Doubtful | Residential real estate | One- to four- family first liens | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2023	0		0
2022	0		0
2021	0		0
2020	0		0
2019	0		0
Prior	0		0
Revolving Loans	0		0
Loans held for investment, net of unearned income	$ 0		$ 0

XML

Loans Receivable and the Allowance for Credit Losses - Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Net charge-offs	$ (500)	$ (600)	$ (1,700)	$ (3,100)
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	50,400	52,350	49,200	48,700
PCD allowance established in acquisition				3,371
Charge-offs	(735)	(970)	(2,381)	(4,041)
Recoveries	284	382	700	950
Credit loss expense (benefit)	1,651	338	4,081	3,120
Ending balance	51,600	52,100	51,600	52,100
Credit loss expense, off balance sheet credit exposure	(100)	300	0	800
Loans receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable	19,000		19,000		$ 15,300
Agricultural
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	617	987	923	667
PCD allowance established in acquisition				512
Charge-offs	(25)	(248)	(26)	(249)
Recoveries	126	1	153	9
Credit loss expense (benefit)	(181)	241	(513)	42
Ending balance	537	981	537	981
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	22,921	21,166	22,855	17,294
PCD allowance established in acquisition				1,473
Charge-offs	(511)	(280)	(1,020)	(843)
Recoveries	79	295	349	613
Credit loss expense (benefit)	(426)	3,075	(121)	5,719
Ending balance	22,063	24,256	22,063	24,256
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	21,911	24,399	20,123	26,120
PCD allowance established in acquisition				1,227
Charge-offs	0	(135)	(830)	(2,319)
Recoveries	4	6	15	154
Credit loss expense (benefit)	1,872	(3,322)	4,479	(4,234)
Ending balance	23,787	20,948	23,787	20,948
Residential real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	4,393	5,174	4,678	4,010
PCD allowance established in acquisition				159
Charge-offs	(21)	(52)	(54)	(90)
Recoveries	3	48	23	68
Credit loss expense (benefit)	268	138	(4)	1,161
Ending balance	4,643	5,308	4,643	5,308
Consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	558	624	621	609
PCD allowance established in acquisition				0
Charge-offs	(178)	(255)	(451)	(540)
Recoveries	72	32	160	106
Credit loss expense (benefit)	118	206	240	432
Ending balance	$ 570	$ 607	$ 570	$ 607

XML

Loans Receivable and the Allowance for Credit Losses - Allowance for Loan Losses Based on Evaluation Method (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment	$ 31,837		$ 22,133
Collectively evaluated for impairment	4,034,132		3,818,391
Loans held for investment, net of unearned income	4,065,969		3,840,524
Allowance for credit losses:
Individually evaluated for impairment	4,053		1,985
Collectively evaluated for impairment	47,547		47,215
Total	51,600	$ 50,400	49,200	$ 52,100	$ 52,350	$ 48,700
Agricultural
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment	224		2,531
Collectively evaluated for impairment	111,726		112,789
Loans held for investment, net of unearned income	111,950		115,320
Allowance for credit losses:
Individually evaluated for impairment	0		500
Collectively evaluated for impairment	537		423
Total	537	617	923	981	987	667
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment	17,687		2,184
Collectively evaluated for impairment	1,061,086		1,052,978
Loans held for investment, net of unearned income	1,078,773		1,055,162
Allowance for credit losses:
Individually evaluated for impairment	2,879		600
Collectively evaluated for impairment	19,184		22,255
Total	22,063	22,921	22,855	24,256	21,166	17,294
Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment	12,759		15,768
Collectively evaluated for impairment	2,163,258		1,964,250
Loans held for investment, net of unearned income	2,176,017		1,980,018
Allowance for credit losses:
Individually evaluated for impairment	1,128		705
Collectively evaluated for impairment	22,659		19,418
Total	23,787	21,911	20,123	20,948	24,399	26,120
Residential real estate
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment	1,167		1,650
Collectively evaluated for impairment	628,879		612,778
Loans held for investment, net of unearned income	630,046		614,428
Allowance for credit losses:
Individually evaluated for impairment	46		180
Collectively evaluated for impairment	4,597		4,498
Total	4,643	4,393	4,678	5,308	5,174	4,010
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	69,183		75,596
Loans held for investment, net of unearned income	69,183		75,596
Allowance for credit losses:
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	570		621
Total	$ 570	$ 558	$ 621	$ 607	$ 624	$ 609

XML

Loans Receivable and the Allowance for Credit Losses - Primary Type of Collateral (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	$ 4,014,369	$ 4,014,369		$ 3,791,324
ACL Allocation	$ 51,600	$ 51,600	$ 50,400	49,200	$ 52,100	$ 52,350	$ 48,700
Total Class of Financing Receivable
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	$ 29,123	$ 29,123		17,374
Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	538	538		3,199
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	2,176	2,176		1,560
Collateral Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	31,837	31,837		22,133
ACL Allocation	4,053	4,053		1,985
Agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	537	$ 537	617	923	981	987	667
Total Class of Financing Receivable		0.01%
Agricultural | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	12	$ 12		68
Agricultural | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	212	212		2,463
Agricultural | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
Agricultural | Collateral Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	224	224		2,531
ACL Allocation	0	0		500
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	$ 22,063	$ 22,063	22,921	22,855	24,256	21,166	17,294
Total Class of Financing Receivable	0.19%	0.34%
Commercial and industrial | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	$ 15,992	$ 15,992		856
Commercial and industrial | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	326	326		736
Commercial and industrial | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	1,369	1,369		592
Commercial and industrial | Collateral Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	17,687	17,687		2,184
ACL Allocation	2,879	2,879		600
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	$ 23,787	$ 23,787	21,911	20,123	20,948	24,399	26,120
Total Class of Financing Receivable	0.10%	0.12%
Commercial real estate | Construction & development | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	$ 0	$ 0		0
Commercial real estate | Construction & development | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
Commercial real estate | Construction & development | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
Commercial real estate | Construction & development | Collateral Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
ACL Allocation	0	0		0
Commercial real estate | Farmland | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	5,582	5,582		4,515
Commercial real estate | Farmland | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
Commercial real estate | Farmland | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
Commercial real estate | Farmland | Collateral Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	5,582	5,582		4,515
ACL Allocation	0	0		0
Commercial real estate | Multifamily | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
Commercial real estate | Multifamily | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
Commercial real estate | Multifamily | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
Commercial real estate | Multifamily | Collateral Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
ACL Allocation	0	0		0
Commercial real estate | Commercial real estate-other | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	6,991	6,991		11,006
Commercial real estate | Commercial real estate-other | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
Commercial real estate | Commercial real estate-other | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	186	186		247
Commercial real estate | Commercial real estate-other | Collateral Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	7,177	7,177		11,253
ACL Allocation	1,128	1,128		705
Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	4,643	4,643	4,393	4,678	5,308	5,174	4,010
Residential real estate | One- to four- family first liens | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	546	546		929
Residential real estate | One- to four- family first liens | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
Residential real estate | One- to four- family first liens | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
Residential real estate | One- to four- family first liens | Collateral Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	546	546		929
ACL Allocation	0	0		0
Residential real estate | One- to four- family junior liens | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
Residential real estate | One- to four- family junior liens | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
Residential real estate | One- to four- family junior liens | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	621	621		721
Residential real estate | One- to four- family junior liens | Collateral Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	621	621		721
ACL Allocation	46	46		180
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	570	570	$ 558	621	$ 607	$ 624	$ 609
Consumer | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
Consumer | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
Consumer | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
Consumer | Collateral Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0	0		0
ACL Allocation	$ 0	$ 0		$ 0
CRE - Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Class of Financing Receivable		1.00%
RRE - One- to four- family first liens
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Class of Financing Receivable		0.01%

XML

Loans Receivable and the Allowance for Credit Losses - Trouble Debt (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023 USD ($) modified_loan	Sep. 30, 2023 USD ($) modified_loan
Financing Receivable, Modified [Line Items]
Principal Receivable	$ 18	$ 81
Total Class of Financing Receivable
Number of modified loans | modified_loan	8	12
Financing receivable, loans totaling	$ 300	$ 1,100
Agricultural
Financing Receivable, Modified [Line Items]
Total Class of Financing Receivable		0.01%
Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	$ 0	$ 63
Total Class of Financing Receivable	0.19%	0.34%
CRE - Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable		$ 0
Total Class of Financing Receivable		1.00%
CRE - Other
Financing Receivable, Modified [Line Items]
Principal Receivable	$ 18	$ 18
Total Class of Financing Receivable	0.10%	0.12%
RRE - One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable		$ 0
Total Class of Financing Receivable		0.01%
Principal Forgiveness
Financing Receivable, Modified [Line Items]
Principal Receivable	$ 0	$ 0
Principal Forgiveness | Agricultural
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Principal Forgiveness | Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0
Principal Forgiveness | CRE - Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Principal Forgiveness | CRE - Other
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0
Principal Forgiveness | RRE - One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Payment Delay
Financing Receivable, Modified [Line Items]
Principal Receivable	0	435
Payment Delay | Agricultural
Financing Receivable, Modified [Line Items]
Principal Receivable		13
Payment Delay | Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	0	264
Payment Delay | CRE - Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Payment Delay | CRE - Other
Financing Receivable, Modified [Line Items]
Principal Receivable	0	158
Payment Delay | RRE - One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Term Extension
Financing Receivable, Modified [Line Items]
Principal Receivable	3,430	6,060
Term Extension | Agricultural
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Term Extension | Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	2,062	2,820
Term Extension | CRE - Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable		1,823
Term Extension | CRE - Other
Financing Receivable, Modified [Line Items]
Principal Receivable	1,368	1,368
Term Extension | RRE - One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable		49
Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0
Interest Rate Reduction | Agricultural
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Interest Rate Reduction | Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0
Interest Rate Reduction | CRE - Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Interest Rate Reduction | CRE - Other
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0
Interest Rate Reduction | RRE - One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Term Extension & Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Principal Receivable	0	103
Term Extension & Interest Rate Reduction | Agricultural
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Term Extension & Interest Rate Reduction | Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	0	103
Term Extension & Interest Rate Reduction | CRE - Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Term Extension & Interest Rate Reduction | CRE - Other
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0
Term Extension & Interest Rate Reduction | RRE - One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Principal Forgiveness & Term Extension
Financing Receivable, Modified [Line Items]
Principal Receivable	0	302
Principal Forgiveness & Term Extension | Agricultural
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Principal Forgiveness & Term Extension | Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	0	302
Principal Forgiveness & Term Extension | CRE - Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Principal Forgiveness & Term Extension | CRE - Other
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0
Principal Forgiveness & Term Extension | RRE - One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Principal Forgiveness, Term Extension, & Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0
Principal Forgiveness, Term Extension, & Interest Rate Reduction | Agricultural
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Principal Forgiveness, Term Extension, & Interest Rate Reduction | Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0
Principal Forgiveness, Term Extension, & Interest Rate Reduction | CRE - Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Principal Forgiveness, Term Extension, & Interest Rate Reduction | CRE - Other
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0
Principal Forgiveness, Term Extension, & Interest Rate Reduction | RRE - One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Payment Delay & Term Extension
Financing Receivable, Modified [Line Items]
Principal Receivable	0	188
Payment Delay & Term Extension | Agricultural
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Payment Delay & Term Extension | Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	0	188
Payment Delay & Term Extension | CRE - Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable		0
Payment Delay & Term Extension | CRE - Other
Financing Receivable, Modified [Line Items]
Principal Receivable	$ 0	0
Payment Delay & Term Extension | RRE - One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable		$ 0

XML

Loans Receivable and the Allowance for Credit Losses - Aging Analysis (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	$ 7,088
Agricultural
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	13
Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	3,678
CRE - Farmland
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	1,823
Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	1,525
RRE - One- to four- family first liens
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	49
Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	6,838
Current | Agricultural
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0
Current | Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	3,490
Current | CRE - Farmland
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	1,823
Current | Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	1,525
Current | RRE - One- to four- family first liens
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0
30 - 59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	237
30 - 59 Days Past Due | Agricultural
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0
30 - 59 Days Past Due | Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	188
30 - 59 Days Past Due | CRE - Farmland
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0
30 - 59 Days Past Due | Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0
30 - 59 Days Past Due | RRE - One- to four- family first liens
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	49
60 - 89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	13
60 - 89 Days Past Due | Agricultural
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	13
60 - 89 Days Past Due | Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0
60 - 89 Days Past Due | CRE - Farmland
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0
60 - 89 Days Past Due | Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0
60 - 89 Days Past Due | RRE - One- to four- family first liens
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0
90 Days or More Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0
90 Days or More Past Due | Agricultural
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0
90 Days or More Past Due | Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0
90 Days or More Past Due | CRE - Farmland
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0
90 Days or More Past Due | Commercial real estate
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0
90 Days or More Past Due | RRE - One- to four- family first liens
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	$ 0

XML

Loans Receivable and the Allowance for Credit Losses - Financial Effect of Loan Modification (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal Forgiveness	$ 18	$ 81
Weighted Average Interest Rate Reduction	0.00%	1.25%
Weighted Average Term Extension (Months)	8 years 1 month 6 days	6 years 1 month 6 days
Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal Forgiveness	$ 0	$ 63
Weighted Average Interest Rate Reduction	0.00%	1.25%
Weighted Average Term Extension (Months)	9 years 10 months 24 days	9 years 2 months 12 days
CRE - Farmland
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal Forgiveness		$ 0
Weighted Average Interest Rate Reduction		0.00%
Weighted Average Term Extension (Months)		10 months 24 days
CRE - Other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal Forgiveness	$ 18	$ 18
Weighted Average Interest Rate Reduction	0.00%	0.00%
Weighted Average Term Extension (Months)	5 years 3 months 18 days	5 years 3 months 18 days
RRE - One- to four- family first liens
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal Forgiveness		$ 0
Weighted Average Interest Rate Reduction		0.00%
Weighted Average Term Extension (Months)		3 years 10 months 24 days

XML

Derivatives, Hedging Activities and Balance Sheet Offsetting - Derivatives and Hedging Activities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	$ 31,448	$ 23,655
Derivative liabilities, fair value	23,488	21,087
Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative, notional amount	341,362	24,018
Derivative assets, fair value	8,000	2,556
Derivative liabilities, fair value	50	0
Designated as Hedging Instrument | Interest rate swaps - loans
Derivatives, Fair Value [Line Items]
Derivative, notional amount	41,362	24,018
Derivative assets, fair value	3,262	2,556
Derivative liabilities, fair value	50	0
Designated as Hedging Instrument | Interest rate swaps - securities
Derivatives, Fair Value [Line Items]
Derivative, notional amount	100,000	0
Derivative assets, fair value	449	0
Derivative liabilities, fair value	0	0
Designated as Hedging Instrument | Interest rate swaps | Cash flow hedges
Derivatives, Fair Value [Line Items]
Derivative, notional amount	200,000	0
Derivative assets, fair value	4,289	0
Derivative liabilities, fair value	0	0
Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative, notional amount	393,896	343,390
Derivative assets, fair value	23,448	21,099
Derivative liabilities, fair value	23,438	21,087
Not Designated as Hedging Instrument | Interest rate swaps
Derivatives, Fair Value [Line Items]
Derivative, notional amount	364,153	331,197
Derivative assets, fair value	23,408	21,084
Derivative liabilities, fair value	23,438	21,087
Not Designated as Hedging Instrument | RPAs | RPAs - protection sold
Derivatives, Fair Value [Line Items]
Derivative, notional amount	186	0
Derivative assets, fair value	0	0
Derivative liabilities, fair value	0	0
Not Designated as Hedging Instrument | RPAs | RPAs - protection purchased
Derivatives, Fair Value [Line Items]
Derivative, notional amount	24,701	9,421
Derivative assets, fair value	0	0
Derivative liabilities, fair value	0	0
Not Designated as Hedging Instrument | Interest rate lock commitments
Derivatives, Fair Value [Line Items]
Derivative, notional amount	1,474	1,372
Derivative assets, fair value	18	7
Derivative liabilities, fair value	0	0
Not Designated as Hedging Instrument | Interest rate forward loan sales contracts
Derivatives, Fair Value [Line Items]
Derivative, notional amount	3,382	1,400
Derivative assets, fair value	22	8
Derivative liabilities, fair value	$ 0	$ 0

XML

Derivatives, Hedging Activities and Balance Sheet Offsetting - Additional Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative instrument, estimated gain reclassified from AOCI into income	$ 3,000
Fair value of derivatives in a net liability position, including accrued interest	$ 596

XML

Derivatives, Hedging Activities and Balance Sheet Offsetting - Effect of Cashflow Hedging on AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized net gains in cash flow hedging instruments	$ 1,829	$ 0	$ 5,288	$ 0
Location of Gain (Loss) Reclassified from AOCI into Income	761	0	999	0
Interest rate swaps | Cash flow hedges | Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized net gains in cash flow hedging instruments	1,829	0	5,288	0
Interest rate swaps | Cash flow hedges | Designated as Hedging Instrument | Interest Expense
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Location of Gain (Loss) Reclassified from AOCI into Income	$ 761	$ 0	$ 999	$ 0

XML

Derivatives, Hedging Activities and Balance Sheet Offsetting - Schedule of Impacts on Statements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Interest Income	$ 34,575	$ 45,733	$ 111,613	$ 122,794
Designated as Hedging Instrument | Interest rate swaps | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Interest Income	317	24	666	(147)
Other Income	0	0	0	0
Designated as Hedging Instrument | Interest rate swaps | Interest Income | Fair value hedges: | Interest contracts - loans:
Derivative Instruments, Gain (Loss) [Line Items]
Hedged items	(747)	(1,149)	(212)	(3,665)
Derivative designated as hedging instruments	964	1,175	1,219	3,519
Designated as Hedging Instrument | Interest rate swaps | Interest Income | Fair value hedges: | Interest contracts - securities:
Derivative Instruments, Gain (Loss) [Line Items]
Hedged items	(454)	0	(454)	0
Derivative designated as hedging instruments	560	0	560	0
Designated as Hedging Instrument | Interest rate swaps | Interest Income | Cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Amount reclassified from AOCI into income	761	0	999	0
Designated as Hedging Instrument | Interest rate swaps | Other income | Fair value hedges: | Interest contracts - loans:
Derivative Instruments, Gain (Loss) [Line Items]
Hedged items	0	0	0	0
Derivative designated as hedging instruments	0	0	0	0
Designated as Hedging Instrument | Interest rate swaps | Other income | Fair value hedges: | Interest contracts - securities:
Derivative Instruments, Gain (Loss) [Line Items]
Hedged items	0	0	0	0
Derivative designated as hedging instruments	0	0	0	0
Designated as Hedging Instrument | Interest rate swaps | Other income | Cash flow hedges
Derivative Instruments, Gain (Loss) [Line Items]
Amount reclassified from AOCI into income	$ 0	$ 0	$ 0	$ 0

XML

Derivatives, Hedging Activities and Balance Sheet Offsetting - Hedged Items in Fair Value Hedging Relationship (Details) - Interest rate swaps - Designated as Hedging Instrument - Fair value hedges: $ in Thousands	Sep. 30, 2023 USD ($)
Loans
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Carrying Amount of the Hedged Assets	$ 38,187
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset	(3,211)
Securities
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Carrying Amount of the Hedged Assets	99,546
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset	$ (454)

XML

Derivatives, Hedging Activities and Balance Sheet Offsetting - Schedule of Other Derivatives Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging, gain (loss)	$ (82)	$ (56)	$ 68	$ (293)
Interest rate swaps | Other income
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging, gain (loss)	(27)	2	(27)	10
RPAs | Other income
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging, gain (loss)	1	0	70	1
Interest rate lock commitments | Loan revenue
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging, gain (loss)	(51)	(149)	11	(367)
Interest rate forward loan sales contracts | Loan revenue
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging, gain (loss)	$ (5)	$ 91	$ 14	$ 63

XML

Derivatives, Hedging Activities and Balance Sheet Offsetting - Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Asset Derivatives
Gross Amounts Recognized	$ 31,448	$ 23,655
Gross Amounts Offset in the Balance Sheet	0	0
Net Amounts presented in the Balance Sheet	31,448	23,655
Financial Instruments	0	0
Cash Collateral Received / Paid	22,762	18,858
Net Assets /Liabilities	8,686	4,797
Liability Derivatives
Gross Amounts Recognized	23,488	21,087
Gross Amounts Offset in the Balance Sheet	0	0
Net Amounts presented in the Balance Sheet	23,488	21,087
Financial Instruments	0	0
Cash Collateral Received / Paid	9,420	3,460
Net Assets /Liabilities	$ 14,068	$ 17,627

XML

Goodwill and Intangible Assets - Goodwill and Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 62,477	$ 62,477

XML

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 66,210	$ 66,210
Accumulated Amortization	(47,740)	(42,935)
Net Carrying Amount	18,470	23,275
Indefinite-lived trade name intangible	7,040	7,040
Core deposit intangible
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	58,245	58,245
Accumulated Amortization	(40,171)	(35,822)
Net Carrying Amount	18,074	22,423
Customer relationship intangible
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	5,265	5,265
Accumulated Amortization	(4,905)	(4,490)
Net Carrying Amount	360	775
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,700	2,700
Accumulated Amortization	(2,664)	(2,623)
Net Carrying Amount	$ 36	$ 77

XML

Goodwill and Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
2023	$ 1,441
2024	4,968
2025	3,771
2026	2,797
2027	1,843
Thereafter	3,650
Net Carrying Amount	18,470	$ 23,275
Core deposit intangible
Finite-Lived Intangible Assets [Line Items]
2023	1,328
2024	4,705
2025	3,751
2026	2,797
2027	1,843
Thereafter	3,650
Net Carrying Amount	18,074	22,423
Customer relationship intangible
Finite-Lived Intangible Assets [Line Items]
2023	103
2024	239
2025	18
2026	0
2027	0
Thereafter	0
Net Carrying Amount	360	775
Other
Finite-Lived Intangible Assets [Line Items]
2023	10
2024	24
2025	2
2026	0
2027	0
Thereafter	0
Net Carrying Amount	$ 36	$ 77

XML

Other Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Other Assets [Abstract]
Bank-owned life insurance	$ 97,383	$ 95,539
Interest receivable	30,095	27,090
FHLB stock	14,869	19,248
Mortgage servicing rights	13,438	13,421
Operating lease right-of-use assets, net	2,593	2,492
Federal and state income taxes, current	0	2,366
Federal and state income taxes, deferred	37,641	39,071
Derivative assets	31,448	23,655
Other receivables/assets	16,569	13,635
Other assets	$ 244,036	$ 236,517

XML

Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Deposits [Abstract]
Noninterest bearing deposits	$ 924,213	$ 1,053,450
Interest checking deposits	1,334,481	1,624,278
Money market deposits	1,127,287	937,340
Savings deposits	619,805	664,169
Time deposits of $250 and under	923,709	559,466
Time deposits over $250	433,829	630,239
Total deposits	5,363,324	5,468,942
Domestic time deposit, brokered	10,900	4,300
Domestic non-time deposit, brokered	149,600	40,000
Noninterest-bearing reciprocal deposits	70,100	0
Brokered deposit	220,100	126,800
Deposits of government entities	$ 221,400	$ 387,800

XML

Short-Term Borrowings (Details) - USD ($)	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Short-term Debt [Line Items]
Weighted Average Rate	5.11%	3.22%
Short-term borrowings	$ 373,956,000	$ 391,873,000
Debt securities available for sale	872,770,000	1,153,547,000
Asset Pledged as Collateral without Right
Short-term Debt [Line Items]
Debt securities available for sale	$ 1,270,000,000	$ 690,200,000
Securities sold under agreements to repurchase
Short-term Debt [Line Items]
Weighted Average Rate	0.73%	1.32%
Short-term borrowings	$ 9,256,000	$ 156,373,000
Federal Home Loan Bank advances
Short-term Debt [Line Items]
Weighted Average Rate	5.53%	4.48%
Short-term borrowings	$ 139,700,000	$ 235,500,000
Federal Reserve Bank borrowings
Short-term Debt [Line Items]
Weighted Average Rate	5.03%	0.00%
Short-term borrowings	$ 225,000,000	$ 0
Federal funds purchased
Short-term Debt [Line Items]
Short-term borrowings	0	0
Unsecured line of credit, maximum borrowing capacity	155,000,000.0
Federal Reserve Bank advances | Federal Reserve
Short-term Debt [Line Items]
Short-term borrowings	0	0
Financing capacity	515,400,000	105,600,000
Federal Reserve Bank advances | Bank Term Funding Loan
Short-term Debt [Line Items]
Short-term borrowings	225,000,000
Unsecured line of credit, maximum borrowing capacity	224,300,000
Federal Reserve Bank advances | Asset Pledged as Collateral without Right | Municipal Securities Loan
Short-term Debt [Line Items]
Debt securities available for sale	880,500,000	115,200,000
Unsecured line of credit
Short-term Debt [Line Items]
Short-term borrowings	0	$ 0
Unsecured line of credit, maximum borrowing capacity	$ 25,000,000.0
Unused commitment fee percentage	0.30%
Unsecured line of credit | SOFR Rate
Short-term Debt [Line Items]
Debt instrument, basis spread on variable rate	1.55%

XML

Long-Term Debt - Junior Subordinated Notes (Details) - Junior subordinated notes - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Debt instrument, face amount	$ 44,847	$ 44,847
Debt instrument, book value	$ 42,249	42,116
Stated maturity date	5 years
ATBancorp Statutory Trust I
Debt Instrument [Line Items]
Debt instrument, face amount	$ 7,732	7,732
Debt instrument, book value	$ 6,959	$ 6,928
Interest rate	7.35%	6.45%
ATBancorp Statutory Trust I | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.68%	1.68%
ATBancorp Statutory Trust I | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.26%
ATBancorp Statutory Trust II
Debt Instrument [Line Items]
Debt instrument, face amount	$ 12,372	$ 12,372
Debt instrument, book value	$ 11,018	$ 10,969
Interest rate	7.32%	6.42%
ATBancorp Statutory Trust II | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.65%	1.65%
ATBancorp Statutory Trust II | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.26%
Barron Investment Capital Trust I
Debt Instrument [Line Items]
Debt instrument, face amount	$ 2,062	$ 2,062
Debt instrument, book value	$ 1,854	$ 1,832
Interest rate	7.81%	6.88%
Barron Investment Capital Trust I | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2.15%	2.15%
Barron Investment Capital Trust I | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.26%
Central Bancshares Capital Trust II
Debt Instrument [Line Items]
Debt instrument, face amount	$ 7,217	$ 7,217
Debt instrument, book value	$ 6,954	$ 6,923
Interest rate	9.17%	8.27%
Central Bancshares Capital Trust II | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	3.50%	3.50%
Central Bancshares Capital Trust II | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.26%
MidWestOne Statutory Trust II
Debt Instrument [Line Items]
Debt instrument, face amount	$ 15,464	$ 15,464
Debt instrument, book value	$ 15,464	$ 15,464
Interest rate	7.26%	6.36%
MidWestOne Statutory Trust II | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.59%	1.59%
MidWestOne Statutory Trust II | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.26%

XML

Long-Term Debt - Subordinated Debentures (Details) - Subordinated debt - USD ($) $ in Thousands		9 Months Ended
	Jul. 28, 2020	Sep. 30, 2023
Debt Instrument [Line Items]
Percentage of debentures categorized as tier 2 capital		100.00%
Percentage of debentures, decrease to tier 2 treatment, per year		20.00%
Decrease to tier 2 treatment, period of recognition		5 years
5.75% Fixed to floating subordinated notes
Debt Instrument [Line Items]
Debt instrument, face amount	$ 63,750
Interest rate	5.75%
5.75% Fixed to floating subordinated notes | Private placement
Debt Instrument [Line Items]
Sale of equity	$ 65,000

XML

Long-Term Debt - Other Long-Term Debt (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Weighted Average Rate	5.65%	4.30%
Balance	$ 18,172	$ 33,088
Finance lease payable
Debt Instrument [Line Items]
Weighted Average Rate	8.89%	8.89%
Balance	$ 652	$ 787
FHLB borrowings
Debt Instrument [Line Items]
Weighted Average Rate	3.11%	2.91%
Balance	$ 6,270	$ 17,301
Federal home loan, bank advances general debt obligations, disclosures maximum borrowing capacity as percentage of total assets	45.00%
Note payable to unaffiliated bank
Debt Instrument [Line Items]
Weighted Average Rate	6.88%	5.67%
Balance	$ 11,250	$ 15,000
Note payable to unaffiliated bank | SOFR Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.55%

XML

Long-Term Debt - Federal Home Loan Bank Advances (Details) $ in Thousands	Sep. 30, 2023 USD ($)
Weighted Average Rate
Due in 2024	3.11%
Amount
Due in 2024	$ 6,250
Valuation adjustment from acquisition accounting	20
Total	$ 6,270

XML

Earnings per Share - Basic And Diluted Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Basic Earnings Per Share:
Net income	$ 9,138	$ 18,317	$ 18,129	$ 44,833
Weighted average shares outstanding (in shares)	15,688,502	15,623,498	15,672,989	15,657,917
Basic earnings per common share (in dollars per share)	$ 0.58	$ 1.17	$ 1.16	$ 2.86
Diluted Earnings Per Share:
Net income	$ 9,138	$ 18,317	$ 18,129	$ 44,833
Weighted average shares outstanding, including all dilutive potential shares (in shares)	15,711,137	15,654,443	15,696,071	15,686,098
Diluted earnings per common share (in dollars per share)	$ 0.58	$ 1.17	$ 1.15	$ 2.86

XML

Regulatory Capital Requirements and Restrictions on Subsidiary Cash (Details)	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Cash reserve deposit required and made	$ 0	$ 0
Capital	$ 668,678,000	$ 653,380,000
Capital to risk weighted assets	0.1245	0.1207
Capital required for capital adequacy	$ 564,137,000	$ 568,452,000
Capital required for capital adequacy to risk weighted assets	0.1050	0.1050
Tier one risk based capital	$ 553,807,000	$ 544,300,000
Tier one risk based capital to risk weighted assets	0.1031	0.1005
Tier one risk based capital required for capital adequacy	$ 456,682,000	$ 460,175,000
Tier one risk based capital required for capital adequacy to risk weighted assets	0.0850	0.0850
Common equity tier one capital	$ 511,558,000	$ 502,184,000
Common equity tier one capital to risk weighted assets	9.52%	9.28%
Common equity tier one capital required for capital adequacy	$ 376,091,000	$ 378,968,000
Common equity tier one capital required for capital adequacy to risk weighted assets	7.00%	7.00%
Tier one leverage capital	$ 553,807,000	$ 544,300,000
Tier one leverage capital to average assets	0.0858	0.0835
Tier one leverage capital required for capital adequacy	$ 258,071,000	$ 260,891,000
Tier one leverage capital required for capital adequacy to average assets	0.0400	0.0400
Capital conservation buffer	2.50%	2.50%
MidWestOne Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Capital	$ 662,831,000	$ 654,297,000
Capital to risk weighted assets	0.1236	0.1210
Capital required for capital adequacy	$ 563,166,000	$ 567,684,000
Capital required for capital adequacy to risk weighted assets	0.1050	0.1050
Capital required to be well capitalized	$ 536,348,000	$ 540,652,000
Capital required to be well capitalized to risk weighted assets	0.1000	0.1000
Tier one risk based capital	$ 612,960,000	$ 610,217,000
Tier one risk based capital to risk weighted assets	0.1143	0.1129
Tier one risk based capital required for capital adequacy	$ 455,896,000	$ 459,554,000
Tier one risk based capital required for capital adequacy to risk weighted assets	0.0850	0.0850
Tier one risk based capital required to be well capitalized	$ 429,079,000	$ 432,522,000
Tier one risk based capital required to be well capitalized to risk weighted assets	0.0800	0.0800
Common equity tier one capital	$ 612,960,000	$ 610,217,000
Common equity tier one capital to risk weighted assets	11.43%	11.29%
Common equity tier one capital required for capital adequacy	$ 375,444,000	$ 378,456,000
Common equity tier one capital required for capital adequacy to risk weighted assets	7.00%	7.00%
Common equity tier one risk based capital required to be well capitalized	$ 348,626,000	$ 351,424,000
Common equity tier one risk based capital required to be well capitalized to risk weighted assets	6.50%	6.50%
Tier one leverage capital	$ 612,960,000	$ 610,217,000
Tier one leverage capital to average assets	0.0951	0.0936
Tier one leverage capital required for capital adequacy	$ 257,931,000	$ 260,776,000
Tier one leverage capital required for capital adequacy to average assets	0.0400	0.0400
Tier one leverage capital required to be well capitalized	$ 322,414,000	$ 325,970,000
Tier one leverage capital required to be well capitalized to average assets	0.0500	0.0500

XML

Commitments and Contingencies - Schedule of Commitments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Other Commitments [Line Items]
Total	$ 1,253,873	$ 1,209,617
Commitments to sell loans
Other Commitments [Line Items]
Total	2,528	612
Commitments to extend credit
Other Commitments [Line Items]
Total	1,242,267	1,190,607
Standby letters of credit
Other Commitments [Line Items]
Total	$ 9,078	$ 18,398

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Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Concentration Risk [Line Items]
Off-balance sheet, credit loss, liability	$ 4.8		$ 4.8		$ 4.8
Credit loss expense, off balance sheet credit loss expense (benefit)	$ (0.1)	$ 0.3	$ 0.0	$ 0.8
Credit Concentration Risk | Loans Concentration | Commercial real estate
Concentration Risk [Line Items]
Concentration risk, percentage			65.00%
Credit Concentration Risk | Loans Concentration | Agricultural Related Loan Financing Receivable
Concentration Risk [Line Items]
Concentration risk, percentage			7.00%
Credit Concentration Risk | Investment Securities | State and political subdivisions | IOWA
Concentration Risk [Line Items]
Concentration risk, percentage			13.00%
Credit Concentration Risk | Investment Securities | State and political subdivisions | CALIFORNIA
Concentration Risk [Line Items]
Concentration risk, percentage			11.00%
Credit Concentration Risk | Investment Securities | State and political subdivisions | MINNESOTA
Concentration Risk [Line Items]
Concentration risk, percentage			10.00%

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Fair Value of Financial Instruments and Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	$ 872,770	$ 1,153,547
Derivative assets	31,448	23,655
Mortgage servicing rights	13,438	13,421
Derivative liabilities	23,488	21,087
Collateralized loan obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	52,453
U.S. Government agencies and corporations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale		7,345
State and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	162,468	285,356
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	5,327	5,944
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	520,599	707,709
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Derivative assets	31,448	23,655
Mortgage servicing rights	13,438	13,421
Derivative liabilities	23,488	21,087
Recurring | Collateralized loan obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	52,453
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Derivative assets	0	0
Mortgage servicing rights	0	0
Derivative liabilities	0	0
Recurring | Level 1 | Collateralized loan obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	0
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Derivative assets	31,430	23,648
Mortgage servicing rights	13,438	13,421
Derivative liabilities	23,488	21,087
Recurring | Level 2 | Collateralized loan obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	52,453
Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Derivative assets	18	7
Mortgage servicing rights	0	0
Derivative liabilities	0	0
Recurring | Level 3 | Collateralized loan obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	0
Recurring | U.S. Government agencies and corporations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale		7,345
Recurring | U.S. Government agencies and corporations | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale		0
Recurring | U.S. Government agencies and corporations | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale		7,345
Recurring | U.S. Government agencies and corporations | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale		0
Recurring | State and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	162,468	285,356
Recurring | State and political subdivisions | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	0	0
Recurring | State and political subdivisions | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	162,468	285,356
Recurring | State and political subdivisions | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	0	0
Recurring | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	5,327	5,944
Recurring | Mortgage-backed securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	0	0
Recurring | Mortgage-backed securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	5,327	5,944
Recurring | Mortgage-backed securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	0	0
Recurring | Collateralized mortgage obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	131,923	147,193
Recurring | Collateralized mortgage obligations | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	0	0
Recurring | Collateralized mortgage obligations | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	131,923	147,193
Recurring | Collateralized mortgage obligations | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	0	0
Recurring | Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	520,599	707,709
Recurring | Corporate debt securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	0	0
Recurring | Corporate debt securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	520,599	707,709
Recurring | Corporate debt securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	$ 0	$ 0

XML

Fair Value of Financial Instruments and Fair Value Measurements - Valuation Techniques (Details) $ in Thousands	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets, fair value	$ 31,448	$ 23,655
Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets, fair value	31,448	23,655
Level 3 | Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets, fair value	18	7
Interest rate lock commitments
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets, fair value	$ 18	$ 7
Interest rate lock commitments | Minimum | Level 3 | Recurring | Pull-through rate | Valuation, Market Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input	0.70
Interest rate lock commitments | Maximum | Level 3 | Recurring | Pull-through rate | Valuation, Market Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input	1
Interest rate lock commitments | Weighted Average | Level 3 | Recurring | Pull-through rate | Valuation, Market Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative asset, measurement input	0.85

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Fair Value of Financial Instruments and Fair Value Measurements - Measured on a Nonrecurring Basis (Details) $ in Thousands	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Foreclosed assets, net	$ 0	$ 103
Nonrecurring | Collateral dependent individually analyzed loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Collateral dependent individually analyzed loans	8,479	3,159
Nonrecurring | Collateral dependent individually analyzed loans | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Collateral dependent individually analyzed loans	0	0
Nonrecurring | Collateral dependent individually analyzed loans | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Collateral dependent individually analyzed loans	0	0
Nonrecurring | Collateral dependent individually analyzed loans | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Collateral dependent individually analyzed loans	$ 8,479	3,159
Nonrecurring | Collateral dependent individually analyzed loans | Level 3 | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Measurement input	0
Nonrecurring | Collateral dependent individually analyzed loans | Level 3 | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Measurement input	0.55
Nonrecurring | Collateral dependent individually analyzed loans | Level 3 | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Measurement input	0.12
Nonrecurring | Foreclosed assets, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Foreclosed assets, net	$ 0	103
Nonrecurring | Foreclosed assets, net | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Foreclosed assets, net		0
Nonrecurring | Foreclosed assets, net | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Foreclosed assets, net		0
Nonrecurring | Foreclosed assets, net | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Foreclosed assets, net		$ 103

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Fair Value of Financial Instruments and Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Financial assets:
Debt securities available for sale	$ 872,770	$ 1,153,547
Debt securities held to maturity	1,085,751	1,129,421
Interest receivable	30,095	27,090
FHLB stock	14,869	19,248
Derivative assets	31,448	23,655
Financial liabilities:
Interest bearing deposits	1,334,481	1,624,278
Short-term borrowings	373,956	391,873
Finance leases payable	652	787
Derivative liabilities	23,488	21,087
Carrying Amount
Financial assets:
Cash and cash equivalents	74,788	86,435
Debt securities available for sale	872,770	1,153,547
Debt securities held to maturity	1,085,751	1,129,421
Loans held for sale	2,528	612
Loans held for investment, net	4,014,369	3,791,324
Interest receivable	30,095	27,090
FHLB stock	14,869
Derivative assets	31,448	23,655
Financial liabilities:
Noninterest bearing deposits	924,213	1,053,450
Interest bearing deposits	4,439,111	4,415,492
Short-term borrowings	373,956	391,873
Finance leases payable	652	787
FHLB borrowings	6,270	17,301
Junior subordinated notes issued to capital trusts	42,249	42,116
Subordinated debentures	64,105	64,006
Other long-term debt	11,250	15,000
Derivative liabilities	23,488	21,087
Estimated Fair Value
Financial assets:
Cash and cash equivalents	74,788	86,435
Debt securities available for sale	872,770	1,153,547
Debt securities held to maturity	848,363	924,894
Loans held for sale	2,564	622
Loans held for investment, net	3,873,341	3,702,527
Interest receivable	30,095	27,090
FHLB stock	14,869	19,248
Derivative assets	31,448	23,655
Financial liabilities:
Noninterest bearing deposits	924,213	1,053,450
Interest bearing deposits	4,424,216	4,393,315
Short-term borrowings	373,956	391,873
Finance leases payable	652	787
FHLB borrowings	6,269	17,032
Junior subordinated notes issued to capital trusts	37,900	39,023
Subordinated debentures	62,809	64,004
Other long-term debt	11,250	15,000
Derivative liabilities	23,488	21,087
Level 1 | Estimated Fair Value
Financial assets:
Cash and cash equivalents	74,788	86,435
Debt securities available for sale	0	0
Debt securities held to maturity	0	0
Loans held for sale	0	0
Loans held for investment, net	0	0
Interest receivable	0	0
FHLB stock	0	0
Derivative assets	0	0
Financial liabilities:
Noninterest bearing deposits	924,213	1,053,450
Interest bearing deposits	3,081,572	3,225,787
Short-term borrowings	373,956	391,873
Finance leases payable	0	0
FHLB borrowings	0	0
Junior subordinated notes issued to capital trusts	0	0
Subordinated debentures	0	0
Other long-term debt	0	0
Derivative liabilities	0	0
Level 2 | Estimated Fair Value
Financial assets:
Cash and cash equivalents	0	0
Debt securities available for sale	872,770	1,153,547
Debt securities held to maturity	848,363	924,894
Loans held for sale	2,564	622
Loans held for investment, net	0	0
Interest receivable	30,095	27,090
FHLB stock	14,869	19,248
Derivative assets	31,430	23,648
Financial liabilities:
Noninterest bearing deposits	0	0
Interest bearing deposits	1,342,644	1,167,528
Short-term borrowings	0	0
Finance leases payable	652	787
FHLB borrowings	6,269	17,032
Junior subordinated notes issued to capital trusts	37,900	39,023
Subordinated debentures	62,809	64,004
Other long-term debt	11,250	15,000
Derivative liabilities	23,488	21,087
Level 3 | Estimated Fair Value
Financial assets:
Cash and cash equivalents	0	0
Debt securities available for sale	0	0
Debt securities held to maturity	0	0
Loans held for sale	0	0
Loans held for investment, net	3,873,341	3,702,527
Interest receivable	0	0
FHLB stock	0	0
Derivative assets	18	7
Financial liabilities:
Noninterest bearing deposits	0	0
Interest bearing deposits	0	0
Short-term borrowings	0	0
Finance leases payable	0	0
FHLB borrowings	0	0
Junior subordinated notes issued to capital trusts	0	0
Subordinated debentures	0	0
Other long-term debt	0	0
Derivative liabilities	$ 0	$ 0

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Leases - Assets and Liabilities (Details) $ in Thousands	Sep. 30, 2023 USD ($) lease	Dec. 31, 2022 USD ($)
Leases [Abstract]
Number of leases | lease	1
Lease Right of Use Assets [Abstract]
Operating lease right-of-use assets	$ 2,593	$ 2,492
Finance lease right-of-use asset	279	350
Total right-of-use assets	2,872	2,842
Lease Liabilities [Abstract]
Operating lease liability	3,365	3,359
Finance lease liability	652	787
Total lease liabilities	$ 4,017	$ 4,146
Weighted-average remaining lease term:
Operating leases	9 years 9 months 10 days	9 years 2 months 23 days
Finance lease	2 years 11 months 1 day	3 years 8 months 1 day
Weighted-average discount rate:
Operating leases	4.33%	4.23%
Finance lease	8.89%	8.89%
Operating lease, right-of-use asset, statement of financial position [Extensible List]	Other assets	Other assets
Finance lease, right-of-use asset, statement of financial position [Extensible List]	Premises and equipment, net	Premises and equipment, net
Operating lease, liability, statement of financial position [Extensible List]	Other liabilities	Other liabilities
Finance lease, liability, statement of financial position [Extensible List]	Long-term debt	Long-term debt

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Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Operating lease cost	$ 297	$ 290	$ 885	$ 874
Variable lease cost	4	7	15	49
Interest on lease liabilities	15	19	47	58
Amortization of right-of-use assets	24	24	72	72
Net lease cost	340	340	1,019	1,053
Operating cash flows from operating leases	602	553	1,799	1,689
Operating cash flows from finance lease	15	19	47	58
Finance cash flows from finance lease	46	41	135	121
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 526	$ 599	$ 857	$ 638

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Leases - Maturity Schedule (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finance Leases
December 31, 2023	$ 62
December 31, 2024	250
December 31, 2025	254
December 31, 2026	172
December 31, 2027	0
Thereafter	0
Total undiscounted lease payment	738
Amounts representing interest	(86)
Finance lease liability	652	$ 787
Operating Leases
December 31, 2023	318
December 31, 2024	1,047
December 31, 2025	568
December 31, 2026	430
December 31, 2027	302
Thereafter	1,738
Total undiscounted lease payment	4,403
Amounts representing interest	(1,038)
Operating lease liability	$ 3,365	$ 3,359

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Subsequent Events (Details)	Oct. 24, 2023 $ / shares
Common Stock | Subsequent Event
Subsequent Event [Line Items]
Dividends payable (in dollars per share)	$ 0.2425