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 June 30, 2024

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 August 1, 2024, there were 15,773,468 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	37
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	58
Item 4.	Controls and Procedures	60
Part II
Item 1.	Legal Proceedings	62
Item 1A.	Risk Factors	62
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	62
Item 3.	Defaults Upon Senior Securities	62
Item 4.	Mine Safety Disclosures	62
Item 5.	Other Information	62
Item 6.	Exhibits	63
	Signatures	64

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
BOD	Bank of Denver	GAAP	U.S. Generally Accepted Accounting Principles
BOLI	Bank Owned Life Insurance	GLBA	Gramm-Leach-Bliley Act of 1999
CAA	Consolidated Appropriations Act, 2021	GNMA	Government National Mortgage Association
CARES Act	Coronavirus Aid, Relief and Economic Security Act	ICS	Insured Cash Sweep
CDARS	Certificate of Deposit Account Registry Service	IOFB	Iowa First Bancshares Corp.
CECL	Current Expected Credit Loss	LIBOR	The London Inter-bank Offered Rate
CMO	Collateralized Mortgage Obligations	MBEFD	Loan Modification for Borrowers Experiencing Financial Difficulty
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

Item 1.   Financial Statements (unaudited).

MIDWESTONE FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS

	June 30, 2024		December 31, 2023
(unaudited) (dollars in thousands, except per share amounts)
ASSETS
Cash and due from banks	$	66,228	$	76,237
Interest earning deposits in banks	35,340		5,479
Federal funds sold	—		11
Total cash and cash equivalents	101,568		81,727
Debt securities available for sale at fair value	771,034		795,134
Held to maturity securities at amortized cost	1,053,080		1,075,190
Total securities	1,824,114		1,870,324
Loans held for sale	2,850		1,045
Gross loans held for investment	4,304,619		4,138,352
Unearned income, net	(17,387)		(11,405)
Loans held for investment, net of unearned income	4,287,232		4,126,947
Allowance for credit losses	(53,900)		(51,500)
Total loans held for investment, net	4,233,332		4,075,447
Premises and equipment, net	91,793		85,742
Goodwill	69,388		62,477
Other intangible assets, net	27,939		24,069
Foreclosed assets, net	6,053		3,929
Other assets	224,621		222,780
Total assets	$	6,581,658	$	6,427,540
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest bearing deposits	$	882,472	$	897,053
Interest bearing deposits	4,529,947		4,498,620
Total deposits	5,412,419		5,395,673
Short-term borrowings	414,684		300,264
Long-term debt	114,839		123,296
Other liabilities	96,430		83,929
Total liabilities	6,038,372		5,903,162
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 15,773,468 and 15,694,306	16,581		16,581
Additional paid-in capital	300,831		302,157
Retained earnings	306,030		294,784
Treasury stock at cost, 807,549 and 886,711 shares	(22,021)		(24,245)
Accumulated other comprehensive loss	(58,135)		(64,899)
Total shareholders' equity	543,286		524,378
Total liabilities and shareholders' equity	$	6,581,658	$	6,427,540

See accompanying notes to consolidated financial statements.  

1

MIDWESTONE FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME

 

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(unaudited) (dollars in thousands, except per share amounts)	2024		2023		2024		2023
Interest income
Loans, including fees	$	61,643	$	49,726	$	119,590	$	96,216
Taxable investment securities	9,228		9,734		18,688		20,178
Tax-exempt investment securities	1,663		1,822		3,373		3,949
Other	242		68		660		312
Total interest income	72,776		61,350		142,311		120,655
Interest expense
Deposits	28,942		20,117		56,668		35,436
Short-term borrowings	5,409		2,118		10,384		3,904
Long-term debt	2,078		2,153		4,181		4,277
Total interest expense	36,429		24,388		71,233		43,617
Net interest income	36,347		36,962		71,078		77,038
Credit loss expense	1,267		1,597		5,956		2,530
Net interest income after credit loss expense	35,080		35,365		65,122		74,508
Noninterest income
Investment services and trust activities	3,504		3,119		7,007		6,052
Service charges and fees	2,156		2,047		4,300		4,055
Card revenue	1,907		1,847		3,850		3,595
Loan revenue	1,525		909		2,381		2,329
Bank-owned life insurance	668		616		1,328		1,218
Investment securities gains (losses), net	33		(2)		69		(13,172)
Other	11,761		210		12,369		623
Total noninterest income	21,554		8,746		31,304		4,700
Noninterest expense
Compensation and employee benefits	20,985		20,386		41,915		39,993
Occupancy expense of premises, net	2,435		2,574		5,248		5,320
Equipment	2,530		2,435		5,130		4,606
Legal and professional	2,253		1,682		4,312		3,418
Data processing	1,645		1,521		3,005		2,884
Marketing	636		1,142		1,234		2,128
Amortization of intangibles	1,593		1,594		3,230		3,346
FDIC insurance	1,051		862		1,993		1,611
Communications	191		260		387		521
Foreclosed assets, net	138		(6)		496		(34)
Other	2,304		2,469		4,376		4,445
Total noninterest expense	35,761		34,919		71,326		68,238
Income before income tax expense	20,873		9,192		25,100		10,970
Income tax expense	5,054		1,598		6,012		1,979
Net income	$	15,819	$	7,594	$	19,088	$	8,991
Per common share information
Earnings - basic	$	1.00	$	0.48	$	1.21	$	0.57
Earnings - diluted	$	1.00	$	0.48	$	1.21	$	0.57
Dividends paid	$	0.2425	$	0.2425	$	0.4850	$	0.4850

See accompanying notes to consolidated financial statements.

2

MIDWESTONE FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(unaudited) (dollars in thousands)	2024		2023		2024		2023
Net income	$	15,819	$	7,594	$	19,088	$	8,991
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) from AFS debt securities:
Unrealized net gain (loss) on debt securities AFS	3,023		(8,795)		5,174		(9,080)
Reclassification adjustment for (gains) losses included in net income	(33)		2		(69)		13,172
Reclassification of the change in fair value of AFS debt securities attributable to change in hedged risk	104		—		986		—
Income tax (expense) benefit	(783)		2,222		(1,541)		(1,038)
Unrealized net gain (loss) on AFS debt securities, net of reclassification adjustments	2,311		(6,571)		4,550		3,054
Reclassification of AFS debt securities to HTM:
Amortization of the net unrealized loss from the reclassification of AFS debt securities to HTM	489		601		990		1,182
Income tax expense	(124)		(152)		(251)		(299)
Amortization of net unrealized loss from the reclassification of AFS debt securities to HTM, net	365		449		739		883
Unrealized gain (loss) from cash flow hedging instruments:
Unrealized net gains in cash flow hedging instruments	778		3,321		3,550		3,459
Reclassification adjustment for net gain in cash flow hedging instruments included in income	(787)		(238)		(1,575)		(238)
Income tax (expense) benefit	2		(780)		(500)		(815)
Unrealized net gains (losses) on cash flow hedge instruments, net of reclassification adjustment	(7)		2,303		1,475		2,406
Other comprehensive income (loss), net of tax	2,669		(3,819)		6,764		6,343
Comprehensive income	$	18,488	$	3,775	$	25,852	$	15,334

See accompanying notes to consolidated financial statements.

3

MIDWESTONE FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

Three Months Ended June 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 March 31, 2023	$	16,581	$	300,966	$	286,767	$	(24,779)	$	(78,885)	$	500,650
Net income	—		—		7,594		—		—		7,594
Other comprehensive loss	—		—		—		—		(3,819)		(3,819)
Release/lapse of restriction on RSUs (9,798 shares, net)	—		(267)		(9)		271		—		(5)
Share-based compensation	—		725		—		—		—		725
Dividends paid on common stock ($0.2425 per share)	—		—		(3,804)		—		—		(3,804)
Balance at June 30, 2023	$	16,581	$	301,424	$	290,548	$	(24,508)	$	(82,704)	$	501,341
Balance at March 31, 2024	$	16,581	$	300,845	$	294,066	$	(22,648)	$	(60,804)	$	528,040
Net income	—		—		15,819		—		—		15,819
Other comprehensive income	—		—		—		—		2,669		2,669
Release/lapse of restriction on RSUs (22,997 shares, net)	—		(598)		(30)		627		—		(1)
Share-based compensation	—		584		—		—		—		584
Dividends paid on common stock ($0.2425 per share)	—		—		(3,825)		—		—		(3,825)
Balance at June 30, 2024	$	16,581	$	300,831	$	306,030	$	(22,021)	$	(58,135)	$	543,286
Six Months Ended June 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, 2022	$	16,581	$	302,085	$	289,289	$	(26,115)	$	(89,047)	$	492,793
Net income	—		—		8,991		—		—		8,991
Other comprehensive income	—		—		—		—		6,343		6,343
Release/lapse of restriction on RSUs (61,146 shares, net)	—		(2,034)		(127)		1,607		—		(554)
Share-based compensation	—		1,373		—		—		—		1,373
Dividends paid on common stock ($0.4850 per share)	—		—		(7,605)		—		—		(7,605)
Balance at June 30, 2023	$	16,581	$	301,424	$	290,548	$	(24,508)	$	(82,704)	$	501,341
Balance at December 31, 2023	$	16,581	$	302,157	$	294,784	$	(24,245)	$	(64,899)	$	524,378
Net income	—		—		19,088		—		—		19,088
Other comprehensive income	—		—		—		—		6,764		6,764
Release/lapse of restriction on RSUs (79,162 shares, net)	—		(2,551)		(197)		2,224		—		(524)
Share-based compensation	—		1,225		—		—		—		1,225
Dividends paid on common stock ($0.4850 per share)	—		—		(7,645)		—		—		(7,645)
Balance at June 30, 2024	$	16,581	$	300,831	$	306,030	$	(22,021)	$	(58,135)	$	543,286

4

MIDWESTONE FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

	Six Months Ended June 30,
(unaudited) (dollars in thousands)	2024		2023
Operating Activities:
Net income	$	19,088	$	8,991
Adjustments to reconcile net income to net cash provided by operating activities:
Credit loss expense	5,956		2,530
Depreciation, amortization, and accretion	5,752		6,207
Net change in premises and equipment due to writedown or sale	78		61
Share-based compensation	1,225		1,373
Net (gain) loss on call or sale of debt securities available for sale	(69)		13,172
Net change in foreclosed assets due to writedown or sale	287		(31)
Net gain on sale of loans held for sale	(600)		(837)
Origination of loans held for sale	(29,834)		(26,151)
Proceeds from sales of loans held for sale	28,629		24,779
Increase in cash surrender value of bank-owned life insurance	(1,328)		(1,218)
(Increase) decrease in deferred income taxes, net	(123)		3
Gain on branch sale	(11,056)		—
Change in:
Other assets	8,375		10,273
Other liabilities	8,440		1,736
Net cash provided by operating activities	$	34,820	$	40,888
Investing Activities:
Purchases of equity securities	$	(500)	$	—
Proceeds from sales of debt securities available for sale	52,323		218,667
Proceeds from maturities and calls of debt securities available for sale	56,542		75,781
Purchases of debt securities available for sale	(28,376)		(54,690)
Proceeds from maturities and calls of debt securities held to maturity	22,141		30,053
Net increase in loans held for investment	(116,809)		(177,153)
Purchases of premises and equipment	(1,149)		(1,307)
Proceeds from sale of foreclosed assets	50		134
Proceeds from sale of premises and equipment	7		880
Net cash paid in business acquisition	(28,621)		—
Net cash received in divestiture of branches	43,732		—
Net cash (used in) provided by investing activities	$	(660)	$	92,365
Financing Activities:
Net (decrease) increase in:
Deposits	$	(74,470)	$	(23,563)
Short-term borrowings	76,920		(29,819)
Payments on finance lease liability	(100)		(89)
Payments of Federal Home Loan Bank borrowings	(6,000)		(11,000)
Payments of other long-term debt	(2,500)		(2,500)
Taxes paid relating to the release/lapse of restriction on RSUs	(524)		(554)
Dividends paid	(7,645)		(7,605)
Net cash used in financing activities	$	(14,319)	$	(75,130)
Net change in cash and cash equivalents	$	19,841	$	58,123
Cash and cash equivalents at beginning of period	81,727		86,435
Cash and cash equivalents at end of period	$	101,568	$	144,558

5

	Six Months Ended June 30,
(unaudited) (dollars in thousands)	2024		2023
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	$	64,584	$	39,016
Cash paid during the period for income taxes, net of refunds	2,317		1,115
Supplemental schedule of non-cash investing and financing activities:
Transfer of loans to foreclosed assets, net	$	2,461	$	—
Supplemental schedule of non-cash investing activities from acquisition:
Non-cash assets acquired:
Investment securities	$	52,493	$	—
Total loans held for investment, net	207,095		—
Premises and equipment	11,091		—
Assets held for sale	2,379		—
Goodwill	8,641		—
Core deposit intangible	7,100		—
Other assets	4,987		—
Total non-cash assets acquired	$	293,786	$	—
Liabilities assumed:
Deposits	$	224,248	$	—
Short-term borrowings	37,500		—
Other liabilities	3,417		—
Total liabilities assumed	$	265,165	$	—
Supplemental schedule of non-cash investing activities from divestiture:
Non-cash assets divested:
Total loans held for investment, net	$	161,359	$	—
Premises and equipment	3,511		—
Goodwill	1,730		—
Other assets	375		—
Total non-cash assets divested	$	166,975	$	—
Liabilities divested:
Deposits	$	133,296	$	—
Other liabilities	231		—
Total liabilities divested	$	133,527	$	—

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

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 January 31, 2024, the Company completed the acquisition of DNVB, a bank holding company whose wholly-owned banking subsidiary was BOD. Immediately following completion of the acquisition, BOD was merged with and into the Bank. As consideration for the merger, the Company paid cash in the amount of $32.6 million.

On June 7, 2024, MidWestOne Bank completed the sale of its Florida banking operations for a 7.5% deposit premium, which consisted of one MidWestOne Bank branch in each of Naples and Ft. Myers, Florida.

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, 2023, filed with the SEC on March 8, 2024.

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 six months ended June 30, 2024 may not be indicative of results for the year ending December 31, 2024, 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, 2023, filed with the SEC on March 8, 2024.

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, southwestern Wisconsin, Denver, Colorado, and, until June 7, 2024, Naples and Ft. Myers, Florida. 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 June 30, 2024

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.

On November 27, 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. Enhanced disclosures about significant segment expenses are included within this ASU. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with an option to early adopt. The amendments should be applied retrospectively to all prior periods presented in the financial statements, with the segment expense categories and amounts disclosed in prior periods being based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the impact of ASU 2023-07.

On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures. Additional transparency about income tax information through improvements to income tax disclosures, primarily related to the rate reconciliation and income taxes paid information, will be required. The amendments are effective for annual periods beginning after December 15, 2024, with an option to early adopt. The amendments should be applied on a prospective basis, with retrospective application being permitted. The Company is currently evaluating the impact of ASU 2023-09.

Accounting Guidance Adopted in 2024

On March 29, 2023, the FASB issued ASU 2023-02, Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. Under this ASU, if certain conditions are met, a reporting entity may elect to account for its tax equity investments by using the proportional amortization method regardless of the program from which it receives income tax credits. The amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with an option to early adopt. The amendments must be applied on either a modified retrospective or a retrospective basis, with certain exceptions for low-income-housing tax credit structures that are not accounted for using the proportional amortization method. The adoption of ASU 2023-02 was applied on a modified retrospective basis and did not have a material impact on the Company's consolidated financial statements.

2.    Business Combinations and Divestitures

Business Combinations:

On January 31, 2024, the Company acquired 100% of the equity of DNVB through a merger and acquired its wholly-owned banking subsidiary, Bank of Denver, for cash consideration of $32.6 million. The primary reason for the acquisition was to increase our presence in Denver, Colorado. Immediately following the completion of the acquisition, BOD was 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 January 31, 2024 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). Initial accounting for the assets acquired and liabilities assumed was incomplete at June 30, 2024. Thus, such amounts recognized in the financial statements have been determined to be provisional. The excess of the consideration paid over the fair value of the net assets acquired is recorded as goodwill. This goodwill is not deductible for tax purposes. The revenue and earnings amount specific to DNVB since the acquisition date that are included in the consolidated results for the three and six months ended June 30, 2024 are not readily determinable. The disclosures of these amounts are impracticable due to the merging of certain processes and systems at the acquisition date.

8

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

(in thousands)	January 31, 2024
Merger consideration
Cash consideration	$	32,600
Identifiable net assets acquired, at fair value
Assets acquired
Cash and due from banks	$	462
Interest earning deposits in banks	3,517
Debt securities	52,493
Loans held for investment	207,095
Premises and equipment	13,470
Core deposit intangible	7,100
Other assets	4,987
Total assets acquired	289,124
Liabilities assumed
Deposits	$	(224,248)
Short-term borrowings	(37,500)
Other liabilities	(3,417)
Total liabilities assumed	(265,165)
Identifiable net assets acquired, at fair value	23,959
Goodwill	$	8,641

For illustrative purposes only, the following table presents certain unaudited pro forma information for the three and six months ended June 30, 2024 and June 30, 2023. This unaudited, estimated pro forma information was calculated as if DNVB 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 DNVB 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.

	Unaudited
	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands, except per share amounts)	2024		2023		2024		2023
Total revenues	$	57,791	$	48,610	$	103,075	$	87,573
Net income (loss)	$	16,407	$	7,339	$	22,812	$	5,547
EPS - basic	$	1.04	$	0.47	$	1.45	$	0.35
EPS - diluted	$	1.04	$	0.47	$	1.45	$	0.35

The following table summarizes acquisition and divestiture-related expenses incurred during the three and six months ended June 30, 2024 and June 30, 2023, which are included in the respective income statement line items, for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2024		2023		2024		2023
Noninterest Expense
Compensation and employee benefits	$	73	$	—	$	314	$	70
Occupancy expense of premises, net	—		—		152		—
Equipment	28		—		177		—
Legal and professional	462		—		1,035		—
Data processing	251		—		312		65
Marketing	—		—		32		—
Communications	8		—		9		—
Other	32		—		137		1
Total acquisition and divestiture-related expenses	$	854	$	—	$	2,168	$	136

9

Divestitures:

On June 7, 2024, the Bank completed the sale of its Florida banking operations for a 7.5% deposit premium, which consisted of one bank branch in each of Naples and Ft. Myers, Florida. The sale of our Florida banking operations resulted in a gain on sale of $11.1 million that was recorded in other revenue.

The following is a summary of the assets and liabilities related to the branch sale:

	June 7, 2024
Assets
Cash and due from banks	$	353
Loans held for investment, net of unearned income	163,302
Allowance for credit losses	(1,943)
Total loans held for investment, net	161,359
Premises and equipment	3,511
Goodwill	1,730
Other assets	375
Total assets	$	167,328
Liabilities
Deposits	$	133,296
Other liabilities	231
Total liabilities	$	133,527

3.    Debt Securities

At June 30, 2024, there was $6.2 million of net unrealized after tax loss remaining in accumulated other comprehensive loss, related to the transfer of securities classified as available for sale to held to maturity on January 1, 2022.

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 June 30, 2024
(in thousands)	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Loss related to Debt Securities		Fair Value
Available for Sale
U.S. Treasury securities	$	250	$	—	$	—	$	—	$	250
State and political subdivisions	122,727		1		8,826		—		113,902
Mortgage-backed securities	5,232		4		140		—		5,096
Collateralized loan obligations	52,563		168		64		—		52,667
Collateralized mortgage obligations	195,077		23		22,472		—		172,628
Corporate debt securities	468,082		114		41,705		—		426,491
Total available for sale debt securities	$	843,931	$	310	$	73,207	$	—	$	771,034
Held to Maturity
State and political subdivisions	$	531,332	$	—	$	77,366	$	—	$	453,966
Mortgage-backed securities	71,993		—		12,879		—		59,114
Collateralized mortgage obligations	449,755		—		105,463		—		344,292
Total held to maturity debt securities	$	1,053,080	$	—	$	195,708	$	—	$	857,372
(1) Amortized cost for the held to maturity securities includes $0.2 million of unamortized gain in state and political subdivisions, $76 thousand of unamortized gains in mortgage-backed securities and $8.8 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.

10

	As of December 31, 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	$	139,482	$	2	$	9,345	$	—	$	130,139
Mortgage-backed securities	5,448		5		142		—		5,311
Collateralized loan obligations	50,541		135		239		—		50,437
Collateralized mortgage obligations	190,304		—		21,108		—		169,196
Corporate debt securities	487,361		57		47,367		—		440,051
Total available for sale debt securities	$	873,136	$	199	$	78,201	$	—	$	795,134
Held to Maturity
State and political subdivisions	$	532,422	$	—	$	65,932	$	—	$	466,490
Mortgage-backed securities	74,904		—		11,635		—		63,269
Collateralized mortgage obligations	467,864		—		102,360		—		365,504
Total held to maturity debt securities	$	1,075,190	$	—	$	179,927	$	—	$	895,263
(1) Amortized cost for the held to maturity securities includes $0.2 million of unamortized gain in state and political subdivisions, $58 thousand of unamortized gains in mortgage-backed securities and $9.7 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.

Investment securities with a fair value of $1.16 billion at each of June 30, 2024 and December 31, 2023 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 June 30, 2024 the accrued interest receivable on available for sale debt securities and held to maturity debt securities totaled $5.1 million and $3.6 million, respectively. At December 31, 2023 the accrued interest receivable on available for sale debt securities and held to maturity debt securities totaled $5.5 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 June 30, 2024, aggregated by investment category and length of time in a continuous loss position:

		As of June 30, 2024
	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	132	$	1,372	$	80	$	110,214	$	8,746	$	111,586	$	8,826
Mortgage-backed securities	21	100		1		4,677		139		4,777		140
Collateralized loan obligations	3	13,039		42		2,878		22		15,917		64
Collateralized mortgage obligations	21	47,816		679		119,410		21,793		167,226		22,472
Corporate debt securities	127	—		—		417,973		41,705		417,973		41,705
Total	304	$	62,327	$	802	$	655,152	$	72,405	$	717,479	$	73,207

As of June 30, 2024, 132 state and political subdivisions securities with total unrealized losses of $8.8 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 June 30, 2024, 21 mortgage-backed securities, and 21 collateralized mortgage obligations with unrealized losses totaling $22.6 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 June 30, 2024, 3 collateralized loan obligations with unrealized losses of $0.1 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.

11

As of June 30, 2024, 127 corporate debt securities with total unrealized losses of $41.7 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, 2023, aggregated by investment category and length of time in a continuous loss position:

		As of December 31, 2023
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)
State and political subdivisions	149	$	8,417	$	492	$	114,713	$	8,853	$	123,130	$	9,345
Mortgage-backed securities	19	—		—		4,906		142		4,906		142
Collateralized loan obligations	2	17,696		239		—		—		17,696		239
Collateralized mortgage obligations	20	6,278		90		127,792		21,018		134,070		21,108
Corporate debt securities	133	2,377		80		429,222		47,287		431,599		47,367
Total	323	$	34,768	$	901	$	676,633	$	77,300	$	711,401	$	78,201

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 June 30, 2024. 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 six months ended June 30, 2024 and 2023, were as follows:

	Three Months Ended				Six Months Ended
(in thousands)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Proceeds from sales of debt securities available for sale	$	—	$	—	$	52,323	$	218,667
Gross realized losses from sales of debt securities available for sale(1)	—		—		—		(13,170)
Net realized loss from sales of debt securities available for sale(1)	$	—	$	—	$	—	$	(13,170)
(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 $33 thousand and $69 thousand for the three and six months ended June 30, 2024, respectively, with $2 thousand net realized loss from the call of debt securities recorded during the three and six months ended June 30, 2023.

The contractual maturity distribution of investment debt securities at June 30, 2024 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	$	79,950	$	78,771	$	12,280	$	11,902
Due after one year through five years	355,490		327,084		148,692		134,904
Due after five years through ten years	131,097		113,941		258,869		216,714
Due after ten years	24,522		20,847		111,491		90,446
	$	591,059	$	540,643	$	531,332	$	453,966
Mortgage-backed securities	5,232		5,096		71,993		59,114
Collateralized loan obligations	52,563		52,667		—		—
Collateralized mortgage obligations	195,077		172,628		449,755		344,292
Total	$	843,931	$	771,034	$	1,053,080	$	857,372

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4.    Loans Receivable and the Allowance for Credit Losses

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

	As of
(in thousands)	June 30, 2024		December 31, 2023
Agricultural	$	107,983	$	118,414
Commercial and industrial	1,120,983		1,075,003
Commercial real estate:
Construction & development	351,646		323,195
Farmland	183,641		184,955
Multifamily	430,054		383,178
Commercial real estate-other	1,348,515		1,333,982
Total commercial real estate	2,313,856		2,225,310
Residential real estate:
One- to four- family first liens	492,541		459,798
One- to four- family junior liens	176,105		180,639
Total residential real estate	668,646		640,437
Consumer	75,764		67,783
Loans held for investment, net of unearned income	4,287,232		4,126,947
Allowance for credit losses	(53,900)		(51,500)
Total loans held for investment, net	$	4,233,332	$	4,075,447

Loans with unpaid principal in the amount of $1.25 billion and $1.13 billion at June 30, 2024 and December 31, 2023, 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.

13

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
June 30, 2024
Agricultural	$	107,502	$	—	$	60	$	421	$	107,983	$	—
Commercial and industrial	1,104,010		493		—		16,480		1,120,983		—
Commercial real estate:
Construction and development	351,202		213		231		—		351,646		—
Farmland	180,388		1,851		—		1,402		183,641		—
Multifamily	429,783		271		—		—		430,054		—
Commercial real estate-other	1,345,528		436		97		2,454		1,348,515		—
Total commercial real estate	2,306,901		2,771		328		3,856		2,313,856		—
Residential real estate:
One- to four- family first liens	485,926		3,506		1,927		1,182		492,541		338
One- to four- family junior liens	175,090		298		367		350		176,105		6
Total residential real estate	661,016		3,804		2,294		1,532		668,646		344
Consumer	75,371		189		99		105		75,764		89
Total	$	4,254,800	$	7,257	$	2,781	$	22,394	$	4,287,232	$	433

			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, 2023
Agricultural	$	117,852	$	338	$	—	$	224	$	118,414	$	—
Commercial and industrial	1,058,301		440		401		15,861		1,075,003		—
Commercial real estate:
Construction and development	323,165		30		—		—		323,195		—
Farmland	182,759		677		352		1,167		184,955		—
Multifamily	383,178		—		—		—		383,178		—
Commercial real estate-other	1,327,727		2,129		1,290		2,836		1,333,982		—
Total commercial real estate	2,216,829		2,836		1,642		4,003		2,225,310		—
Residential real estate:
One- to four- family first liens	453,212		3,572		1,741		1,273		459,798		468
One- to four- family junior liens	179,339		356		690		254		180,639		—
Total residential real estate	632,551		3,928		2,431		1,527		640,437		468
Consumer	67,622		118		28		15		67,783		—
Total	$	4,093,155	$	7,660	$	4,502	$	21,630	$	4,126,947	$	468

14

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)	June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023
Agricultural	$	421	$	235	$	219	$	12	$	—	$	—
Commercial and industrial	16,645		17,770		12,116		12,549		—		—
Commercial real estate:
Construction and development	—		—		—		—		—		—
Farmland	1,530		1,654		1,390		1,490		—		—
Multifamily	—		—		—		—		—		—
Commercial real estate-other	2,717		3,441		2,454		853		—		—
Total commercial real estate	4,247		5,095		3,844		2,343		—		—
Residential real estate:
One- to four- family first liens	2,535		1,888		1,290		455		338		468
One- to four- family junior liens	796		876		121		—		6		—
Total residential real estate	3,331		2,764		1,411		455		344		468
Consumer	51		27		—		—		89		—
Total	$	24,695	$	25,891	$	17,590	$	15,359	$	433	$	468

The interest income recognized on loans that were on nonaccrual for the three months ended June 30, 2024 and June 30, 2023 was $123 thousand and $38 thousand, respectively. The interest income recognized on loans that were on nonaccrual for the six months ended June 30, 2024 and June 30, 2023 was $252 thousand and $94 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.

15

The following tables set 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 June 30, 2024. As of June 30, 2024, there were no 'loss' rated credits.

	Term Loans by Origination Year												Revolving Loans
June 30, 2024 (in thousands)	2024		2023		2022		2021		2020		Prior				Total
Agricultural
Pass	$	9,931	$	8,394	$	10,678	$	6,426	$	2,177	$	1,599	$	64,512	$	103,717
Special mention / watch	147		215		443		245		100		478		1,365		2,993
Substandard	30		—		222		156		212		213		440		1,273
Doubtful	—		—		—		—		—		—		—		—
Total	$	10,108	$	8,609	$	11,343	$	6,827	$	2,489	$	2,290	$	66,317	$	107,983
Commercial and industrial
Pass	$	85,109	$	161,638	$	194,275	$	182,208	$	107,822	$	125,602	$	179,462	$	1,036,116
Special mention / watch	93		7,736		17,163		897		3,055		5,626		10,159		44,729
Substandard	468		654		732		2,952		76		33,875		1,381		40,138
Doubtful	—		—		—		—		—		—		—		—
Total	$	85,670	$	170,028	$	212,170	$	186,057	$	110,953	$	165,103	$	191,002	$	1,120,983
CRE - Construction and development
Pass	$	51,903	$	148,008	$	112,679	$	27,381	$	3,077	$	1,242	$	5,723	$	350,013
Special mention / watch	623		—		—		—		—		—		467		1,090
Substandard	—		312		231		—		—		—		—		543
Doubtful	—		—		—		—		—		—		—		—
Total	$	52,526	$	148,320	$	112,910	$	27,381	$	3,077	$	1,242	$	6,190	$	351,646
CRE - Farmland
Pass	$	13,716	$	25,478	$	41,723	$	43,094	$	16,797	$	16,846	$	2,397	$	160,051
Special mention / watch	820		—		5,858		3,979		5,675		644		865		17,841
Substandard	566		384		382		499		1,183		2,735		—		5,749
Doubtful	—		—		—		—		—		—		—		—
Total	$	15,102	$	25,862	$	47,963	$	47,572	$	23,655	$	20,225	$	3,262	$	183,641
CRE - Multifamily
Pass	$	16,937	$	42,485	$	121,613	$	106,455	$	71,270	$	21,265	$	1,722	$	381,747
Special mention / watch	11,109		—		452		271		16,650		12,333		—		40,815
Substandard	—		—		—		7,492		—		—		—		7,492
Doubtful	—		—		—		—		—		—		—		—
Total	$	28,046	$	42,485	$	122,065	$	114,218	$	87,920	$	33,598	$	1,722	$	430,054
CRE - Other
Pass	$	40,075	$	159,183	$	312,547	$	243,668	$	223,127	$	179,759	$	68,353	$	1,226,712
Special mention / watch	526		8,013		6,468		3,611		4,311		6,261		5,698		34,888
Substandard	1,311		243		26,141		17,959		16,761		24,500		—		86,915
Doubtful	—		—		—		—		—		—		—		—
Total	$	41,912	$	167,439	$	345,156	$	265,238	$	244,199	$	210,520	$	74,051	$	1,348,515
RRE - One- to four- family first liens
Pass / Performing	$	38,297	$	58,650	$	130,613	$	92,734	$	51,605	$	96,948	$	13,562	$	482,409
Special mention / watch	56		723		706		64		593		1,755		—		3,897
Substandard / Nonperforming	—		1,260		897		550		104		3,424		—		6,235
Doubtful	—		—		—		—		—		—		—		—
Total	$	38,353	$	60,633	$	132,216	$	93,348	$	52,302	$	102,127	$	13,562	$	492,541
RRE - One- to four- family junior liens
Performing	$	9,492	$	18,965	$	25,328	$	16,535	$	6,921	$	8,880	$	89,182	$	175,303
Nonperforming	—		—		395		69		22		316		—		802
Total	$	9,492	$	18,965	$	25,723	$	16,604	$	6,943	$	9,196	$	89,182	$	176,105
Consumer
Performing	$	11,129	$	26,788	$	13,575	$	7,707	$	3,137	$	7,526	$	5,762	$	75,624
Nonperforming	—		46		77		—		17		—		—		140
Total	$	11,129	$	26,834	$	13,652	$	7,707	$	3,154	$	7,526	$	5,762	$	75,764

16

	Term Loans by Origination Year												Revolving Loans
June 30, 2024 (in thousands)	2024		2023		2022		2021		2020		Prior				Total
Total by Credit Quality Indicator Category
Pass	$	255,968	$	603,836	$	924,128	$	701,966	$	475,875	$	443,261	$	335,731	$	3,740,765
Special mention / watch	13,374		16,687		31,090		9,067		30,384		27,097		18,554		146,253
Substandard	2,375		2,853		28,605		29,608		18,336		64,747		1,821		148,345
Doubtful	—		—		—		—		—		—		—		—
Performing	20,621		45,753		38,903		24,242		10,058		16,406		94,944		250,927
Nonperforming	—		46		472		69		39		316		—		942
Total	$	292,338	$	669,175	$	1,023,198	$	764,952	$	534,692	$	551,827	$	451,050	$	4,287,232
	Term Loans by Origination Year												Revolving Loans
June 30, 2024 (in thousands)	2024		2023		2022		2021		2020		Prior				Total
Year-to-date Current Period Gross Write-offs
Agricultural	$	—	$	—	$	—	$	4	$	—	$	—	$	—	$	4
Commercial and industrial	—		42		330		145		29		222		—		768
CRE - Construction and development	—		—		—		—		—		—		—		—
CRE - Farmland	—		—		—		—		—		—		—		—
CRE - Multifamily	—		—		—		—		—		—		—		—
CRE - Other	—		—		—		—		—		35		—		35
RRE - One-to-four-family first liens	—		—		53		22		—		—		—		75
RRE - One-to-four-family junior liens	—		—		—		—		—		—		—		—
Consumer	—		338		196		3		1		12		—		550
Total Current Period Gross Write-offs	$	—	$	380	$	579	$	174	$	30	$	269	$	—	$	1,432

17

The following tables set 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, 2023. As of December 31, 2023, there were no 'loss' rated credits.

	Term Loans by Origination Year												Revolving Loans
December 31, 2023 (in thousands)	2023		2022		2021		2020		2019		Prior				Total
Agricultural
Pass	$	11,859	$	12,149	$	8,352	$	2,752	$	689	$	1,139	$	71,680	$	108,620
Special mention / watch	266		550		670		91		5		522		3,705		5,809
Substandard	709		193		302		208		—		224		2,349		3,985
Doubtful	—		—		—		—		—		—		—		—
Total	$	12,834	$	12,892	$	9,324	$	3,051	$	694	$	1,885	$	77,734	$	118,414
Commercial and industrial
Pass	$	176,021	$	224,924	$	193,011	$	117,326	$	25,555	$	116,661	$	147,690	$	1,001,188
Special mention / watch	2,541		416		3,209		3,385		193		272		14,692		24,708
Substandard	897		2,921		2,010		561		8,507		29,432		4,779		49,107
Doubtful	—		—		—		—		—		—		—		—
Total	$	179,459	$	228,261	$	198,230	$	121,272	$	34,255	$	146,365	$	167,161	$	1,075,003
CRE - Construction and development
Pass	$	99,803	$	163,126	$	43,189	$	3,393	$	821	$	700	$	9,552	$	320,584
Special mention / watch	1,097		—		464		—		—		—		467		2,028
Substandard	343		240		—		—		—		—		—		583
Doubtful	—		—		—		—		—		—		—		—
Total	$	101,243	$	163,366	$	43,653	$	3,393	$	821	$	700	$	10,019	$	323,195
CRE - Farmland
Pass	$	25,666	$	44,907	$	47,068	$	18,863	$	6,587	$	14,845	$	1,642	$	159,578
Special mention / watch	1,229		6,898		2,409		5,982		—		965		276		17,759
Substandard	1,830		210		1,542		1,052		926		2,029		29		7,618
Doubtful	—		—		—		—		—		—		—		—
Total	$	28,725	$	52,015	$	51,019	$	25,897	$	7,513	$	17,839	$	1,947	$	184,955
CRE - Multifamily
Pass	$	32,077	$	96,969	$	111,032	$	77,532	$	8,701	$	6,508	$	4,208	$	337,027
Special mention / watch	5,318		1,237		277		18,984		7,850		4,586		—		38,252
Substandard	—		—		7,572		327		—		—		—		7,899
Doubtful	—		—		—		—		—		—		—		—
Total	$	37,395	$	98,206	$	118,881	$	96,843	$	16,551	$	11,094	$	4,208	$	383,178
CRE - Other
Pass	$	199,698	$	295,066	$	256,718	$	250,676	$	77,509	$	90,170	$	51,827	$	1,221,664
Special mention / watch	364		1,306		3,300		4,823		4,282		2,395		3,856		20,326
Substandard	325		26,555		19,253		19,103		8,242		17,876		638		91,992
Doubtful	—		—		—		—		—		—		—		—
Total	$	200,387	$	322,927	$	279,271	$	274,602	$	90,033	$	110,441	$	56,321	$	1,333,982
RRE - One- to four- family first liens
Pass / Performing	$	62,644	$	125,777	$	92,767	$	54,028	$	19,674	$	81,660	$	13,283	$	449,833
Special mention / watch	629		716		36		620		1,827		319		—		4,147
Substandard / Nonperforming	1,156		191		738		165		164		3,404		—		5,818
Doubtful	—		—		—		—		—		—		—		—
Total	$	64,429	$	126,684	$	93,541	$	54,813	$	21,665	$	85,383	$	13,283	$	459,798
RRE - One- to four- family junior liens
Performing	$	23,551	$	29,919	$	18,733	$	7,292	$	2,590	$	7,867	$	89,810	$	179,762
Nonperforming	—		192		—		25		23		637		—		877
Total	$	23,551	$	30,111	$	18,733	$	7,317	$	2,613	$	8,504	$	89,810	$	180,639
Consumer
Performing	$	26,028	$	14,319	$	10,042	$	4,421	$	1,451	$	7,350	$	4,145	$	67,756
Nonperforming	—		22		—		—		3		2		—		27
Total	$	26,028	$	14,341	$	10,042	$	4,421	$	1,454	$	7,352	$	4,145	$	67,783

18

	Term Loans by Origination Year												Revolving Loans
December 31, 2023 (in thousands)	2023		2022		2021		2020		2019		Prior				Total
Total by Credit Quality Indicator Category
Pass	$	607,768	$	962,918	$	752,137	$	524,570	$	139,536	$	311,683	$	299,882	$	3,598,494
Special mention / watch	11,444		11,123		10,365		33,885		14,157		9,059		22,996		113,029
Substandard	5,260		30,310		31,417		21,416		17,839		52,965		7,795		167,002
Doubtful	—		—		—		—		—		—		—		—
Performing	49,579		44,238		28,775		11,713		4,041		15,217		93,955		247,518
Nonperforming	—		214		—		25		26		639		—		904
Total	$	674,051	$	1,048,803	$	822,694	$	591,609	$	175,599	$	389,563	$	424,628	$	4,126,947
	Term Loans by Origination Year												Revolving Loans
December 31, 2023 (in thousands)	2023		2022		2021		2020		2019		Prior				Total
Year-to-date Current Period Gross Write-offs
Agricultural	$	—	$	8	$	1	$	17	$	2	$	—	$	—	$	28
Commercial and industrial	239		343		223		133		464		45		—		1,447
CRE - Construction and development	—		—		—		—		—		—		—		—
CRE - Farmland	—		—		—		—		—		—		—		—
CRE - Multifamily	—		—		—		—		—		—		—		—
CRE - Other	—		—		—		—		—		2,337		—		2,337
RRE - One-to-four-family first liens	—		—		—		—		—		36		—		36
RRE - One-to-four-family junior liens	—		19		—		—		—		—		—		19
Consumer	—		621		30		12		12		10		—		685
Total Current Period Gross Write-offs	$	239	$	991	$	254	$	162	$	478	$	2,428	$	—	$	4,552

Allowance for Credit Losses

The following are the economic factors utilized by the Company for its loan credit loss estimation process at June 30, 2024, and the forecast for each factor at that date: (1) Midwest unemployment – increases over the next four forecasted quarters; (2) National unemployment - increases over the next three forecasted quarters, with a decrease in the fourth forecasted quarter; (3) year-to-year change in national retail sales - increases over the next four forecasted quarters; (4) year-to-year change in CRE Index - decreases over the next four forecasted quarters; and (5) year-to-year change in U.S. GDP - 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 June 30, 2024 and December 31, 2023 reflects $3.1 million of day 1 credit loss expense related to acquired DNVB loans, as well as additional reserve taken to support loan growth. Partially offsetting these identified increases was a $1.9 million reduction to the ACL for allowance allocated to the loans sold with our Florida banking operations. Net loan charge-offs were $0.5 million for the three months ended June 30, 2024 as compared to net loan charge-offs of $0.9 million for the three months ended June 30, 2023. Net loan charge-offs were $0.7 million for the six months ended June 30, 2024 as compared to net loan charge-offs of $1.2 million for the six months ended June 30, 2023.

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 $20.6 million at June 30, 2024.

19

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

	For the Three Months Ended June 30, 2024 and 2023
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
For the Three Months Ended June 30, 2024
Beginning balance	$	648	$	21,882	$	26,772	$	5,014	$	1,584	$	55,900
Allocated to banking office sale	—		(51)		(1,795)		(94)		(3)		(1,943)
Charge-offs	—		(469)		—		(56)		(260)		(785)
Recoveries	—		223		6		4		28		261
Credit loss expense (benefit)(1)	(246)		1,423		(659)		(209)		158		467
Ending balance	$	402	$	23,008	$	24,324	$	4,659	$	1,507	$	53,900
For the Three Months Ended June 30, 2023
Beginning balance	$	513	$	22,345	$	21,833	$	4,545	$	564	$	49,800
Charge-offs	—		(189)		(812)		(33)		(125)		(1,159)
Recoveries	1		195		6		16		44		262
Credit loss expense (benefit) (1)	103		570		884		(135)		75		1,497
Ending balance	$	617	$	22,921	$	21,911	$	4,393	$	558	$	50,400
(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 of $0.8 million and $0.1 million related to off-balance sheet credit exposures for the three months ended June 30, 2024 and June 30, 2023, respectively.

	For the Six Months Ended June 30, 2024 and 2023
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
For the Six Months Ended June 30, 2024
Beginning balance	$	613	$	21,743	$	23,759	$	4,762	$	623	$	51,500
Allocated in banking office sale	—		(51)		(1,795)		(94)		(3)		(1,943)
Charge-offs	(4)		(768)		(35)		(75)		(550)		(1,432)
Recoveries	355		269		14		13		68		719
Credit loss expense (benefit)(1)	(562)		1,815		2,381		53		1,369		5,056
Ending balance	$	402	$	23,008	$	24,324	$	4,659	$	1,507	$	53,900
For the Six Months Ended June 30, 2023
Beginning balance	$	923	$	22,855	$	20,123	$	4,678	$	621	$	49,200
Charge-offs	(1)		(509)		(830)		(33)		(273)		(1,646)
Recoveries	27		270		11		20		88		416
Credit loss (benefit) expense(1)	(332)		305		2,607		(272)		122		2,430
Ending balance	$	617	$	22,921	$	21,911	$	4,393	$	558	$	50,400
(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 of $0.9 million and $0.1 million related to off-balance sheet credit exposures for the six months ended June 30, 2024 and June 30, 2023, respectively.

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

	As of June 30, 2024
(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	$	219	$	16,024	$	6,320	$	1,564	$	—	$	24,127
Collectively evaluated for impairment	107,764		1,104,959		2,307,536		667,082		75,764		4,263,105
Total	$	107,983	$	1,120,983	$	2,313,856	$	668,646	$	75,764	$	4,287,232
Allowance for credit losses:
Individually evaluated for impairment	$	—	$	1,671	$	44	$	104	$	—	$	1,819
Collectively evaluated for impairment	402		21,337		24,280		4,555		1,507		52,081
Total	$	402	$	23,008	$	24,324	$	4,659	$	1,507	$	53,900

20

	As of December 31, 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	$	11	$	17,231	$	10,932	$	983	$	—	$	29,157
Collectively evaluated for impairment	118,403		1,057,772		2,214,378		639,454		67,783		4,097,790
Total	$	118,414	$	1,075,003	$	2,225,310	$	640,437	$	67,783	$	4,126,947
Allowance for credit losses:
Individually evaluated for impairment	$	—	$	2,616	$	705	$	16	$	—	$	3,337
Collectively evaluated for impairment	613		19,127		23,054		4,746		623		48,163
Total	$	613	$	21,743	$	23,759	$	4,762	$	623	$	51,500

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 June 30, 2024
(in thousands)	Primary Type of Collateral
	Real Estate		Equipment		Other		Total		ACL Allocation
Agricultural	$	219	$	—	$	—	$	219	$	—
Commercial and industrial	16,024		—		—		16,024		1,671
Commercial real estate:
Farmland	3,686		—		—		3,686		—
Commercial real estate-other	2,468		—		166		2,634		44
Residential real estate:
One- to four- family first liens	1,290		—		—		1,290		—
One- to four- family junior liens	274		—		—		274		104
Total	$	23,961	$	—	$	166	$	24,127	$	1,819

	As of December 31, 2023
(in thousands)	Primary Type of Collateral
	Real Estate		Equipment		Other		Total		ACL Allocation
Agricultural	$	11	$	—	$	—	$	11	$	—
Commercial and industrial	15,991		—		1,240		17,231		2,616
Commercial real estate:
Farmland	5,403		—		—		5,403		—
Commercial real estate-other	5,350		—		179		5,529		705
Residential real estate:
One- to four- family first liens	481		—		—		481		—
One- to four- family junior liens	—		—		502		502		16
Total	$	27,236	$	—	$	1,921	$	29,157	$	3,337

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.

21

The following tables present the amortized cost basis of loans as of June 30, 2024 and June 30, 2023 that were modified during the three and six months ended June 30, 2024 and June 30, 2023 and experiencing financial difficulty at the time of the modification by class and by type of modification:

	For the Three Months and Six Months Ended June 30, 2024
									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 June 30, 2024
Commercial and industrial	$	—	$	—	$	78	$	—	$	—	$	—	$	—	$	—	0.01	%
CRE - Construction and development	—		—		231		—		—		—		—		—		0.07	%
CRE - Farmland	—		—		381		—		—		—		—		—		0.21	%
CRE - Other	—		—		4,910		—		—		—		—		—		0.36	%
RRE - One- to four- family first liens	—		—		393		—		—		—		—		—		0.08	%
Total	$	—	$	—	$	5,993	$	—	$	—	$	—	$	—	$	—
Six Months Ended June 30, 2024
Commercial and industrial	$	—	$	—	$	453	$	—	$	—	$	—	$	—	$	—	0.04	%
CRE - Construction and development	—		—		231		—		—		—		—		—		0.07	%
CRE - Farmland	—		—		381		—		—		—		—		—		0.21	%
CRE - Other	—		—		5,107		—		—		—		—		—		0.38	%
RRE - One- to four- family first liens	—		252		393		—		—		—		—		—		0.13	%
RRE - One- to four- family junior liens	—		—		136		—		—		—		—		—		0.08	%
Total	$	—	$	252	$	6,701	$	—	$	—	$	—	$	—	$	—

	For the Three Months and Six Months Ended June 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 June 30, 2023
Agricultural	$	—	$	15	$	—	$	—	$	—	$	—	$	—	$	—	0.01	%
Commercial and industrial	—		272		732		—		—		—		192		—		0.11	%
CRE - Farmland	—		—		1,843		—		—		—		—		—		1.01	%
CRE - Other	—		158		—		—		—		—		—		—		0.01	%
RRE - One- to four- family first liens	—		—		80		—		—		—		—		—		0.02	%
Total	$	—	$	445	$	2,655	$	—	$	—	$	—	$	192	$	—
Six Months Ended June 30, 2023
Agricultural	$	—	$	15	$	—	$	—	$	—	$	—	$	—	$	—	0.01	%
Commercial and industrial	—		272		778		—		112		305		192		—		0.15	%
CRE - Farmland	—		—		1,843		—		—		—		—		—		1.01	%
CRE - Other	—		158		—		—		—		—		—		—		0.01	%
RRE - One- to four- family first liens	—		—		80		—		—		—		—		—		0.02	%
Total	$	—	$	445	$	2,701	$	—	$	112	$	305	$	192	$	—

The Company has $5 thousand of additional commitments to lend amounts to the borrowers included in the previous tables as of June 30, 2024 and had no commitments as of June 30, 2023. For the three and six months ended June 30, 2024, the Company had two modified loans totaling $0.6 million and 8 modified loans totaling $0.9 million, respectively, to borrowers experiencing financial difficulty that redefaulted within 12 months subsequent to the modification. For the three and six months ended June 30, 2023, the Company had four modified loans totaling $0.9 million to borrowers experiencing financial difficulty that redefaulted within 12 months subsequent to the modification.

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The following tables present the performance, as of June 30, 2024 and June 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 June 30, 2024
(in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
Commercial and industrial	$	522	$	—	$	—	$	—	$	522
CRE - Construction and development	312		—		231		—		543
CRE - Farmland	381		—		—		352		733
CRE - Other	10,662		—		—		—		10,662
RRE - One- to four- family first liens	645		—		—		—		645
RRE - One- to four- family junior liens	149		—		—		—		149
Total	$	12,671	$	—	$	231	$	352	$	13,254
	As of June 30, 2023
(in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
Agricultural	$	—	$	15	$	—	$	—	$	15
Commercial and industrial	968		—		690		—		1,658
CRE - Farmland	1,843		—		—		—		1,843
CRE - Other	158		—		—		—		158
RRE - One- to four- family first liens	80		—		—		—		80
Total	$	3,049	$	15	$	690	$	—	$	3,754

The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three and six months ended June 30, 2024 and June 30, 2023:

(dollars in thousands)	Principal Forgiveness		Weighted Average Interest Rate Reduction		Weighted Average Term Extension (Months)
Three Months Ended June 30, 2024
Commercial and industrial	$	—	—	%	26.0
CRE - Construction and development	—		—		0.8
CRE - Farmland	—		—		5.4
CRE - Other	—		—		7.1
RRE - One- to four- family first liens	—		—		210.1
Total	$	—	—	%	20.4
Six Months Ended June 30, 2024
Commercial and industrial	$	—	—	%	8.1
CRE - Construction and development	—		—		0.8
CRE - Farmland	—		—		5.4
CRE - Other	—		—		7.1
RRE - One- to four- family first liens	—		—		210.1
RRE - One- to four- family junior liens	—		—		122.0
Total	$	—	—	%	21.1

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(dollars in thousands)	Principal Forgiveness		Weighted Average Interest Rate Reduction		Weighted Average Term Extension (Months)
Three Months Ended June 30, 2023
Commercial and industrial	$	—	—	%	6.5
CRE - Farmland	—		—		0.9
RRE - One- to four- family first liens	—		—		3.9
Total	$	—	—	%	2.9
Six Months Ended June 30, 2023
Commercial and industrial	$	63	1.25	%	8.3
CRE - Farmland	—		—		0.9
CRE - Other	18		7.00		2.5
RRE - One- to four- family first liens	—		—		3.9
Total	$	81	1.25	%	4.1

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 June 30, 2024						As of December 31, 2023
	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	$	50,111	$	2,577	$	416	$	41,101	$	2,071	$	902
Interest rate swaps - securities	150,000		174		20		150,000		—		821
Cash flow hedges
Interest rate swaps	200,000		2,651		—		200,000		940		264
Total	$	400,111	$	5,402	$	436	$	391,101	$	3,011	$	1,987
Not designated as hedging instruments:
Interest rate swaps	$	614,745	$	23,221	$	23,232	$	432,648	$	22,028	$	22,038
RPAs - protection sold	53,133		6		—		18,778		4		—
RPAs - protection purchased	30,633		—		3		31,145		—		9
Interest rate lock commitments	3,537		49		—		1,461		50		—
Interest rate forward loan sales contracts	3,551		13		—		2,075		—		23
Total	$	705,599	$	23,289	$	23,235	$	486,107	$	22,082	$	22,070

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, including AFS debt securities and loans. 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 has previously 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, including brokered deposits. The

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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 12 months following June 30, 2024, the Company estimates that an additional $2.2 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 six months ended June 30, 2024 and 2023:

	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 June 30,					Three Months Ended June 30,
(in thousands)	2024		2023			2024		2023
Interest rate swaps	$	778	$	3,321	Interest Expense	$	787	$	238
	Six Months Ended June 30,					Six Months Ended June 30,
(in thousands)	2024		2023			2024		2023
Interest rate swaps	$	3,550	$	3,459	Interest Expense	$	1,575	$	238

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 June 30,								For the Six Months Ended June 30,
	2024				2023				2024				2023
(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	$	483	$	—	$	190	$	—	$	891	$	—	$	349	$	—
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	(233)		—		(27)		—		(997)		—		535		—
Derivative designated as hedging instruments	507		—		658		—		1,530		—		255		—
Interest contracts - securities:
Hedged items	(103)		—		—		—		(986)		—		—		—
Derivative designated as hedging instruments	284		—		—		—		1,343		—		—		—

As of June 30, 2024, 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	$	47,070	$	(3,292)
Securities	$	149,582	$	(418)

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 June 30,				For the Six Months Ended June 30,
(in thousands)		2024		2023		2024		2023
Interest rate swaps	Other income	$	—	$	—	$	1	$	—
RPAs	Other income	2		—		7		69
Interest rate lock commitments	Loan revenue	(28)		(32)		(1)		62
Interest rate forward loan sales contracts	Loan revenue	21		49		36		19
Total		$	(5)	$	17	$	43	$	150

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 June 30, 2024 and December 31, 2023, 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 June 30, 2024
Asset Derivatives	$	28,691	$	—	$	28,691	$	—	$	17,444	$	11,247
Liability Derivatives	23,671		—		23,671		—		1,230		22,441
As of December 31, 2023
Asset Derivatives	$	25,093	$	—	$	25,093	$	—	$	15,549	$	9,544
Liability Derivatives	24,057		—		24,057		—		2,420		21,637

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 June 30, 2024, 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 $5.6 million.

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6.    Goodwill and Intangible Assets

The following table presents the changes in the carrying amount of goodwill for the period indicated:

(in thousands)	As of June 30, 2024		December 31, 2023
Goodwill, beginning of period	$	62,477	$	62,477
Established in acquisition	8,641		—
Allocated to divestiture	(1,730)		—
Total goodwill, end of period	$	69,388	$	62,477

As indicated in Note 2. Business Combinations, the Company acquired a core deposit intangible in connection with its acquisition of DNVB on January 31, 2024 with an estimated fair value of $7.1 million, which will be amortized over its estimated useful life of 10 years.

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 June 30, 2024						As of December 31, 2023
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangible	$	65,345	$	(44,562)	$	20,783	$	58,245	$	(41,499)	$	16,746
Customer relationship intangible	5,265		(5,160)		105		5,265		(5,008)		257
Other	2,700		(2,689)		11		2,700		(2,674)		26
	$	73,310	$	(52,411)	$	20,899	$	66,210	$	(49,181)	$	17,029
Indefinite-lived trade name intangible					7,040						7,040
Total other intangible assets, net					$	27,939					$	24,069

The following table provides the estimated future amortization expense for the remaining six months of the year ending December 31, 2024 and the succeeding annual periods:

(in thousands)	Core Deposit Intangible		Customer Relationship Intangible		Other		Total
2024	$	2,826	$	87	$	9	$	2,922
2025	4,924		18		2		4,944
2026	3,840		—		—		3,840
2027	2,757		—		—		2,757
2028	2,110		—		—		2,110
Thereafter	4,326		—		—		4,326
Total	$	20,783	$	105	$	11	$	20,899

7.    Other Assets

The components of the Company's other assets as of June 30, 2024 and December 31, 2023 were as follows:

(in thousands)	June 30, 2024		December 31, 2023
Bank-owned life insurance	$	99,367	$	98,039
Interest receivable	30,202		29,768
FHLB stock	5,096		5,806
Mortgage servicing rights	13,094		13,333
Operating lease right-of-use assets, net	1,784		2,337
Federal and state income taxes, current	—		1,556
Federal and state income taxes, deferred	28,577		31,218
Derivative assets	28,691		25,093
Other receivables/assets	17,810		15,630
	$	224,621	$	222,780

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8.    Deposits

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

(in thousands)	June 30, 2024		December 31, 2023
Noninterest bearing deposits	$	882,472	$	897,053
Interest checking deposits	1,284,243		1,320,435
Money market deposits	1,043,376		1,105,493
Savings deposits	745,639		650,655
Time deposits of $250 and under	999,301		973,253
Time deposits over $250	457,388		448,784
Total deposits	$	5,412,419	$	5,395,673

The Company had $24.5 million and $15.2 million in reciprocal time deposits as of June 30, 2024 and December 31, 2023, respectively. Included in money market deposits at June 30, 2024 and December 31, 2023 were $114.7 million and $128.0 million, respectively, of interest-bearing reciprocal deposits. Included in noninterest bearing deposits at June 30, 2024 and December 31, 2023 were $52.0 million and $58.0 million, respectively, of noninterest-bearing reciprocal deposits. These reciprocal deposits are part of the IntraFi Network Deposits program, which is used by financial institutions to distribute deposits that exceed the FDIC insurance coverage limits to numerous institutions in order to provide insurance coverage for all participating deposits.

In addition, included above within the time deposits of “$250 thousand and under” was $196.0 million of brokered deposits as of June 30, 2024 and $221.0 million as of December 31, 2023.

As of June 30, 2024 and December 31, 2023, the Company had public entity deposits, which were collateralized by investment securities balances of $227.9 million and $183.4 million, respectively.

9.    Short-Term Borrowings

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

	June 30, 2024				December 31, 2023
(in thousands)	Weighted Average Rate		Balance		Weighted Average Rate		Balance
Securities sold under agreements to repurchase	0.67	%	$	5,684	0.72	%	$	5,064
Federal Home Loan Bank advances	5.52		4,000		5.64		10,200
Federal Reserve Bank borrowings	4.77		405,000		4.82		285,000
Total	4.72	%	$	414,684	4.78	%	$	300,264

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 $135.0 million from multiple correspondent banking relationships. There were no borrowings from such lines at either June 30, 2024 or December 31, 2023.

Federal Reserve Bank Borrowing - At June 30, 2024 and December 31, 2023, the Company had no Federal Reserve Discount Window borrowings, while its borrowing capacity was $413.5 million as of June 30, 2024 and $428.8 million as of December 31, 2023. At June 30, 2024 and December 31, 2023, the Company had $405.0 million and $285.0 million, respectively, of Bank Term Funding Program borrowings. The FRB announced that effective March 11, 2024, no additional loans would be made under the Bank Term Funding Program. As of June 30, 2024 and December 31, 2023, investment securities consisting primarily of corporate debt, state and political subdivisions, mortgage backed, and collateralized mortgage obligations were pledged to the Federal Reserve Bank of Chicago, with a market value of $771.3 million and $797.6 million, respectively.

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Unsecured Line of Credit - 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 borrowing outstanding under this revolving credit facility as of both June 30, 2024 and December 31, 2023.

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:

			June 30,		December 31,			June 30,		December 31,
			2024		2023			2024		2023
(in thousands)	Face Value		Book Value				Interest Rate(1)	Rate				Maturity Date	Callable Date
ATBancorp Statutory Trust I	$	7,732	$	6,992	$	6,970	1.68% Margin	7.28	%	7.33	%	06/15/2036	06/15/2011
ATBancorp Statutory Trust II	12,372		11,068		11,034		1.65% Margin	7.25	%	7.30	%	09/15/2037	06/15/2012
Barron Investment Capital Trust I	2,062		1,875		1,861		2.15% Margin	7.76	%	7.77	%	09/23/2036	09/23/2011
Central Bancshares Capital Trust II	7,217		6,983		6,964		3.50% Margin	9.10	%	9.15	%	03/15/2038	03/15/2013
MidWestOne Statutory Trust II	15,464		15,464		15,464		1.59% Margin	7.19	%	7.24	%	12/15/2037	12/15/2012
Total	$	44,847	$	42,382	$	42,293
(1) Interest rate is equal to the Three-month CME Term SOFR + 0.26% Spread + Applicable Margin

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 June 30, 2024, 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. At June 30, 2024 and December 31, 2023, the Company had outstanding subordinated debentures of $64.2 million and $64.1 million, respectively.

Other Long-Term Debt

Other long-term borrowings were as follows as of June 30, 2024 and December 31, 2023:

	June 30, 2024				December 31, 2023
(in thousands)	Weighted Average Rate		Balance		Weighted Average Rate		Balance
Finance lease payable	8.89	%	$	504	8.89	%	$	604
FHLB borrowings	2.23		250		3.11		6,262
Note payable to unaffiliated bank	6.88		7,500		6.89		10,000
Total	6.86	%	$	8,254	5.56	%	$	16,866

On June 7, 2022, pursuant to a credit agreement with a correspondent bank, the Company entered into a $35.0 million term note payable maturing on June 30, 2027. Principal and interest are payable quarterly, and began on September 30, 2022. Interest accrues at the monthly reset term SOFR plus 1.55%. The credit agreement includes customary covenants requiring the

29

Company to, among other things, maintain minimum levels of both regulatory capital and certain financial ratios; the Company certifies compliance with the covenants on a quarterly basis. On February 12, 2024, the credit agreement, including certain of its covenants, was amended.

As a member of the FHLBDM, the Bank may borrow funds from the FHLB, provided the Bank is able to pledge an adequate amount of qualified assets to secure the borrowings. In addition, the FHLB has established a credit capacity limit to the Bank that is equal to 45% of the Bank’s total assets. This credit capacity limit includes short-term and long-term borrowings, federal funds, letters of credit and other sources of credit exposure to the FHLB. 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 June 30, 2024, there was $250 thousand of FHLB borrowings due in 2024.

11.    Earnings per Share

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

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands, except per share amounts)	2024		2023		2024		2023
Basic Earnings Per Share:
Net income	$	15,819	$	7,594	$	19,088	$	8,991
Weighted average shares outstanding	15,763,414		15,680,386		15,743,056		15,665,103
Basic earnings per common share	$	1.00	$	0.48	$	1.21	$	0.57
Diluted Earnings Per Share:
Net income	$	15,819	$	7,594	$	19,088	$	8,991
Weighted average shares outstanding, including all dilutive potential shares	15,780,935		15,689,314		15,775,110		15,687,729
Diluted earnings per common share	$	1.00	$	0.48	$	1.21	$	0.57

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 June 30, 2024 and December 31, 2023, the Bank was not required to maintain reserve balances in cash on hand or on deposit with Federal Reserve Banks, and therefore no amounts were held in reserve for each of these periods.

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A comparison of the Company's and the Bank's capital with the corresponding minimum regulatory requirements in effect at June 30, 2024 and December 31, 2023, 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 June 30, 2024
Consolidated:
Total capital/risk weighted assets	$675,817	12.62%	$562,159	10.50%	N/A	N/A
Tier 1 capital/risk weighted assets	554,283	10.35	455,081	8.50	N/A	N/A
Common equity tier 1 capital/risk weighted assets	511,901	9.56	374,773	7.00	N/A	N/A
Tier 1 leverage capital/average assets	554,283	8.29	267,327	4.00	N/A	N/A
MidWestOne Bank:
Total capital/risk weighted assets	$673,406	12.61%	$560,759	10.50%	$534,056	10.00%
Tier 1 capital/risk weighted assets	616,872	11.55	453,948	8.50	427,245	8.00
Common equity tier 1 capital/risk weighted assets	616,872	11.55	373,839	7.00	347,137	6.50
Tier 1 leverage capital/average assets	616,872	9.24	267,151	4.00	333,939	5.00
At December 31, 2023
Consolidated:
Total capital/risk weighted assets	$668,748	12.53%	$560,596	10.50%	N/A	N/A
Tier 1 capital/risk weighted assets	554,177	10.38	453,816	8.50	N/A	N/A
Common equity tier 1 capital/risk weighted assets	511,884	9.59	373,731	7.00	N/A	N/A
Tier 1 leverage capital/average assets	554,177	8.58	258,487	4.00	N/A	N/A
MidWestOne Bank:
Total capital/risk weighted assets	$656,027	12.49%	$551,658	10.50%	$525,388	10.00%
Tier 1 capital/risk weighted assets	606,456	11.54	446,580	8.50	420,310	8.00
Common equity tier 1 capital/risk weighted assets	606,456	11.54	367,772	7.00	341,502	6.50
Tier 1 leverage capital/average assets	606,456	9.39	258,339	4.00	322,924	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:

	June 30, 2024		December 31, 2023
(in thousands)
Commitments to extend credit	$	1,194,005	$	1,203,001
Commitments to sell loans	2,850		1,045
Standby letters of credit	6,599		7,795
Total	$	1,203,454	$	1,211,841

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 June 30, 2024 and December 31, 2023, the liability for off-balance-sheet credit losses totaled $5.5 million and $4.6 million, respectively. For the six months ended June 30, 2024, $0.9 million credit loss expense was recorded, with $0.1 million credit loss expense recorded for the six months ended June 30, 2023.

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 12%, 12%, and 10%, respectively, as of June 30, 2024.

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 2023 Annual Report on Form 10-K, filed with the SEC on March 8, 2024.

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 foreclosed assets.

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Recurring Basis

The following tables summarize assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023, by level within the fair value hierarchy:

	Fair Value Measurement at June 30, 2024 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Assets:
Available for sale debt securities:
U.S. Treasury securities	$	250	$	—	$	250	$	—
State and political subdivisions	113,902		—		113,902		—
Mortgage-backed securities	5,096		—		5,096		—
Collateralized loan obligations	52,667		—		52,667		—
Collateralized mortgage obligations	172,628		—		172,628		—
Corporate debt securities	426,491		—		426,491		—
Derivative assets	28,691		—		28,642		49
Mortgage servicing rights	13,094		—		13,094		—
Liabilities:
Derivative liabilities	$	23,671	$	—	$	23,671	$	—

	Fair Value Measurement at December 31, 2023 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Assets:
Debt securities available for sale:
State and political subdivisions	$	130,139	$	—	$	130,139	$	—
Mortgage-backed securities	5,311		—		5,311		—
Collateralized loan obligations	50,437		—		50,437		—
Collateralized mortgage obligations	169,196		—		169,196		—
Corporate debt securities	440,051		—		440,051		—
Derivative assets	25,093		—		25,043		50
Mortgage servicing rights	13,333		—		13,333		—
Liabilities:
Derivative liabilities	$	24,057	$	—	$	24,057	$	—

There were no transfers of assets between Level 3 and other levels of the fair value hierarchy during the six months ended June 30, 2024 or the year ended December 31, 2023. 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)	June 30, 2024		December 31, 2023		Valuation Techniques(s)	Unobservable Input	Range of Inputs			Weighted Average
Interest rate lock commitments	$	49	$	50	Quoted or published market prices of similar instruments, adjusted for factors such as pull-through rate assumptions	Pull-through rate	60%	-	100%	86%

Nonrecurring Basis

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

	Fair Value Measurement at June 30, 2024 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Collateral dependent individually analyzed loans	$	2,409	$	—	$	—	$	2,409
Foreclosed assets, net	6,053		—		—		6,053

	Fair Value Measurement at December 31, 2023 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Collateral dependent individually analyzed loans	$	6,524	$	—	$	—	$	6,524
Foreclosed assets, net	3,929		—		—		3,929

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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)	June 30, 2024		December 31, 2023		Valuation Techniques(s)	Unobservable Input	Range of Inputs			Weighted Average
Collateral dependent individually analyzed loans	$	2,409	$	6,524	Fair value of collateral	Valuation adjustments	—%	-	8%	5%
Foreclosed assets, net	$	6,053	$	3,929	Fair value of collateral	Valuation adjustments	7%	-	19%	14%

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 June 30, 2024 and December 31, 2023 were as follows:

	June 30, 2024
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	101,568	$	101,568	$	101,568	$	—	$	—
Debt securities available for sale	771,034		771,034		—		771,034		—
Debt securities held to maturity	1,053,080		857,372		—		857,372		—
Loans held for sale	2,850		2,898		—		2,898		—
Loans held for investment, net	4,233,332		4,112,203		—		—		4,112,203
Interest receivable	30,202		30,202		—		30,202		—
FHLB stock	5,096		5,096		—		5,096		—
Derivative assets	28,691		28,691		—		28,642		49
Financial liabilities:
Noninterest bearing deposits	882,472		882,472		882,472		—		—
Interest bearing deposits	4,529,947		4,507,277		3,073,258		1,434,019		—
Short-term borrowings	414,684		414,684		414,684		—		—
Finance leases payable	504		504		—		504		—
FHLB borrowings	250		236		—		236		—
Junior subordinated notes issued to capital trusts	42,382		38,065		—		38,065		—
Subordinated debentures	64,203		61,589		—		61,589		—
Other long-term debt	7,500		7,500		—		7,500		—
Derivative liabilities	23,671		23,671		—		23,671		—

	December 31, 2023
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	81,727	$	81,727	$	81,727	$	—	$	—
Debt securities available for sale	795,134		795,134		—		795,134		—
Debt securities held to maturity	1,075,190		895,263		—		895,263		—
Loans held for sale	1,045		1,083		—		1,083		—
Loans held for investment, net	4,075,447		3,953,368		—		—		3,953,368
Interest receivable	29,768		29,768		—		29,768		—
FHLB stock	5,806		5,806		—		5,806		—
Derivative assets	25,093		25,093		—		25,043		50
Financial liabilities:
Noninterest bearing deposits	897,053		897,053		897,053		—		—
Interest bearing deposits	4,498,620		4,489,322		3,076,582		1,412,740		—
Short-term borrowings	300,264		300,264		300,264		—		—
Finance leases payable	604		604		—		604		—
FHLB borrowings	6,262		6,199		—		6,199		—
Junior subordinated notes issued to capital trusts	42,293		37,938		—		37,938		—
Subordinated debentures	64,137		61,940		—		61,940		—
Other long-term debt	10,000		10,000		—		10,000		—
Derivative liabilities	24,057		24,057		—		24,057		—

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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	June 30, 2024			December 31, 2023
Operating lease right-of-use assets	Other assets	$	1,784		$	2,337
Finance lease right-of-use asset	Premises and equipment, net	207			255
Total right-of-use assets		$	1,991		$	2,592
Operating lease liability	Other liabilities	$	2,427		$	3,078
Finance lease liability	Long-term debt	504			604
Total lease liabilities		$	2,931		$	3,682
Weighted-average remaining lease term:	Operating leases	11.86 years			10.20 years
	Finance lease	2.17 years			2.67 years
Weighted-average discount rate:	Operating leases	4.79		%	4.43		%
	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				Six Months Ended
	June 30,				June 30,
(in thousands)	2024		2023		2024		2023
Lease Costs
Operating lease cost	$	233	$	296	$	621	$	588
Variable lease cost	7		4		14		11
Interest on lease liabilities(1)	11		15		24		32
Amortization of right-of-use assets	24		24		48		48
Net lease cost	$	275	$	339	$	707	$	679
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	694	$	592	$	1,516	$	1,197
Operating cash flows from finance lease	11		15		24		32
Finance cash flows from finance lease	51		45		100		89
Supplemental non-cash information on lease liabilities:
Right-of-use assets obtained in exchange for new operating lease liabilities	39		—		195		311

(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 six months ending December 31, 2024 and the succeeding annual periods were as follows:

(in thousands)	Finance Leases		Operating Leases
December 31, 2024	$	126	$	333
December 31, 2025	254		559
December 31, 2026	172		447
December 31, 2027	—		302
December 31, 2028	—		138
Thereafter	—		1,600
Total undiscounted lease payment	$	552	$	3,379
Amounts representing interest	(48)		(952)
Lease liability	$	504	$	2,427

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16.    Accumulated Other Comprehensive Income (Loss)

The following tables summarize the changes in accumulated other comprehensive income (loss) by component, net of tax:

For the Three Months Ended June 30,
(in thousands)	Unrealized Gain (Loss) from AFS Debt Securities		Reclassification of AFS Debt Securities to HTM		Unrealized Gain (Loss) from Cash Flow Hedging Instruments		Total
Balance, March 31, 2023	$	(82,227)	$	3,239	$	103	$	(78,885)
Other comprehensive (loss) income before reclassifications	(6,571)		449		2,481		(3,641)
Amounts reclassified from AOCI	—		—		(178)		(178)
Net current-period other comprehensive (loss) income	(6,571)		449		2,303		(3,819)
Balance, June 30, 2023	$	(88,798)	$	3,688	$	2,406	$	(82,704)
Balance, March 31, 2024	$	(67,676)	$	4,885	$	1,987	$	(60,804)
Other comprehensive income before reclassifications	2,258		365		581		3,204
Amounts reclassified from AOCI	53		—		(588)		(535)
Net current-period other comprehensive income (loss)	2,311		365		(7)		2,669
Balance, June 30, 2024	$	(65,365)	$	5,250	$	1,980	$	(58,135)
For the Six Months Ended June 30,
(in thousands)	Unrealized Gain (Loss) from AFS Debt Securities		Reclassification of AFS Debt Securities to HTM		Unrealized Gain (Loss) from Cash Flow Hedging Instruments		Total
Balance, December 31, 2022	$	(91,852)	$	2,805	$	—	$	(89,047)
Other comprehensive (loss) income before reclassifications	(6,784)		883		2,584		(3,317)
Amounts reclassified from AOCI	9,838		—		(178)		9,660
Net current-period other comprehensive income	3,054		883		2,406		6,343
Balance, June 30, 2023	$	(88,798)	$	3,688	$	2,406	$	(82,704)
Balance, December 31, 2023	$	(69,915)	$	4,511	$	505	$	(64,899)
Other comprehensive income before reclassifications	3,865		739		2,652		7,256
Amounts reclassified from AOCI	685		—		(1,177)		(492)
Net current-period other comprehensive income	4,550		739		1,475		6,764
Balance, June 30, 2024	$	(65,365)	$	5,250	$	1,980	$	(58,135)

The following table presents reclassifications out of AOCI:

	Three-Months Ended June 30,				Six-Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Investment securities (gains) losses, net	$	(33)	$	2	$	(69)	$	13,172
Interest income	104		—		986		—
Interest expense	(787)		(238)		(1,575)		(238)
Income tax (expense) benefit	181		58		166		(3,274)
Net of tax	$	(535)	$	(178)	$	(492)	$	9,660

17.    Subsequent Events

The Company has evaluated events that have occurred subsequent to June 30, 2024 and has concluded there are no other subsequent events that would require recognition in the accompanying consolidated financial statements.

On July 23, 2024, the board of directors of the Company declared a cash dividend of $0.2425 per share payable on September 17, 2024 to shareholders of record as of the close of business on September 3, 2024.

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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 or branch sales (including the recent sale of our Florida banking operations and the acquisition of DNVB), 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 sustained high 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 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 ongoing 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 or our third-party vendors' 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;

•potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election;

•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 that resulted in recent bank failures; and

•factors and risks described under “Risk Factors” in our Annual Report on Form 10-K 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.

37

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, southwestern Wisconsin, and Denver, Colorado.

On January 31, 2024, the Company completed the acquisition of DNVB, a bank holding company headquartered in Denver, Colorado, and the parent company of BOD. Immediately following completion of the acquisition, BOD was merged with and into the Bank. As consideration for the merger, we paid cash of $32.6 million.

On June 7, 2024, the Bank completed the sale of its Florida banking operations for a 7.5% deposit premium, which consisted of one bank branch in each of Naples and Ft. Myers, Florida.

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 wealth management services through which it offers the administration of estates, trusts, and conservatorships, as well as financial planning, investment advisory, and brokerage services (the latter of which is provided through an arrangement 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, 2023, filed with the SEC on March 8, 2024. Results of operations for the three and six months ended June 30, 2024 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 June 30, 2024 of $15.8 million, an increase of $8.2 million, compared to $7.6 million of net income for the three months ended June 30, 2023, with diluted earnings per share of $1.00 and $0.48, for the three months ended June 30, 2024 and 2023, respectively. For the six months ended June 30, 2024, the Company reported net income of $19.1 million, an increase of $10.1 million, compared to $9.0 million of net income for the six months ended June 30, 2023, with diluted earnings per share of $1.21 and $0.57 for the respective annual periods.

The period as of and for the three and six months ended June 30, 2024 was also highlighted by the following results:

Balance Sheet:

•Total assets increased to $6.58 billion at June 30, 2024 from $6.43 billion at December 31, 2023, driven primarily by acquired DNVB assets and organic loan growth, partially offset by the loans divested in the sale of our Florida banking operations and lower investment securities balances.

•At June 30, 2024 the total amount of the held to maturity debt securities was $1.05 billion and the total amount of the debt securities available for sale was $771.0 million. There were $1.08 billion of held to maturity debt securities at December 31, 2023, while the total amount of the debt securities available for sale was $795.1 million at that date.

•Gross loans held for investment increased $166.3 million, from $4.14 billion at December 31, 2023, to $4.30 billion at June 30, 2024, due primarily to acquired DNVB loans and organic loan growth, partially offset by loans divested in the sale of our Florida banking operations.

•The allowance for credit losses was $53.9 million, or 1.26% of total loans at June 30, 2024, compared with $51.5 million, or 1.25% of total loans, at December 31, 2023. The increase in the ACL primarily reflected the $3.1 million of day 1 credit loss expense related to acquired DNVB loans, as well as an additional reserve taken to support organic loan growth, partially offset by the $1.9 million of allowance divested in the sale of our Florida banking operations.

•Nonperforming assets increased $0.9 million, from $30.3 million at December 31, 2023, to $31.2 million at June 30, 2024.

•Total deposits increased $16.7 million, from $5.40 billion at December 31, 2023, to $5.41 billion at June 30, 2024, due primarily to assumed DNVB deposits, partially offset by deposits divested in the sale of our Florida banking operations.

•Short-term borrowings increased to $414.7 million at June 30, 2024, from $300.3 million at December 31, 2023, and long-term debt decreased to $114.8 million at June 30, 2024, from $123.3 million at December 31, 2023.

•The Company was well-capitalized with a total risk-based capital ratio of 12.62% at June 30, 2024.

38

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 $37.7 million for the second quarter of 2024, a decrease of $0.4 million, from $38.1 million in the second quarter of 2023. 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 $8.8 million and $3.2 million, respectively, in addition to a decrease of $0.7 million in interest income earned from investment securities. Partially offsetting these identified decreases in tax equivalent net interest income was an increase of $12.1 million in loan interest income.

•Credit loss expense of $1.3 million was recorded during the second quarter of 2024, compared to $1.6 million credit loss expense recorded in the second quarter of 2023. Credit loss expense in the current quarter reflected an additional liability of $0.8 million for unfunded loan commitments, coupled with an additional reserve taken to support organic loan growth.

•Noninterest income increased $12.8 million, from $8.7 million in the second quarter of 2023, to $21.6 million in the second quarter of 2024, due primarily to the $11.1 million gain recognized in connection with the sale of our Florida banking operations, which was recorded in other revenue.

•Noninterest expense increased $0.8 million, from $34.9 million in the second quarter of 2023, to $35.8 million in the second quarter of 2024, primarily due to increases of $0.6 million in both compensation and employee benefits and legal and professional expenses, partially offset by a decline of $0.5 million in marketing.

Six 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 $73.7 million for the six months ended June 30, 2024, a decrease of $5.7 million from the six months ended June 30, 2023. 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 $21.2 million and $6.4 million, respectively, in addition to a decrease of $2.3 million in interest income earned from investment securities. Partially offsetting these identified decreases in tax equivalent net interest income was an increase of $23.8 million in loan interest income.

•Credit loss expense of $6.0 million was recorded in the first six months of 2024, as compared to credit loss expense of $2.5 million for the first six months of 2023. Credit loss expense in the first six months of 2024 reflected $3.2 million of expense for acquired DNVB loans, an additional liability of $0.9 million for unfunded loan commitments, coupled with an additional reserve taken to support organic loan growth.

•Noninterest income increased $26.6 million, from $4.7 million for the six months ended June 30, 2023, to $31.3 million in the first six months of 2024, due primarily to investment securities losses, net of $13.2 million recorded in 2023 as part of a balance sheet repositioning, which did not recur in 2024, coupled with the $11.1 million gain recognized in connection with the sale of our Florida banking operations, which was recorded in other revenue.

•Noninterest expense increased $3.1 million, from $68.2 million for the six months ended June 30, 2023, to $71.3 million in the first six months of 2024, primarily due to increases of $1.9 million, $0.9 million, $0.5 million, and $0.5 million in compensation and employee benefits, legal and professional, foreclosed assets, net, and equipment expenses. Partially offsetting these increases was a decline of $0.9 million in marketing expense.

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, 2023, filed with the SEC on March 8, 2024, and there have been no material changes in these critical accounting policies since December 31, 2023.

39

RESULTS OF OPERATIONS

Comparison of Operating Results for the Three Months Ended June 30, 2024 and June 30, 2023

Summary

	As of or for the Three Months Ended June 30,
(dollars in thousands, except per share amounts)	2024			2023
Net Interest Income	$	36,347		$	36,962
Noninterest Income	21,554			8,746
Total Revenue, Net of Interest Expense	57,901			45,708
Credit Loss Expense	1,267			1,597
Noninterest Expense	35,761			34,919
Income Before Income Tax Expense	20,873			9,192
Income Tax Expense	5,054			1,598
Net Income	15,819			7,594
Diluted Earnings Per Share	$	1.00		$	0.48
Return on Average Assets	0.95		%	0.47		%
Return on Average Equity	11.91			6.03
Return on Average Tangible Equity(1)	15.74			8.50
Efficiency Ratio(1)	56.29			71.13
Dividend Payout Ratio	24.25			50.52
Common Equity Ratio	8.25			7.69
Tangible Common Equity Ratio(1)	6.88			6.40
Book Value per Share	$	34.44		$	31.96
Tangible Book Value per Share(1)	28.27			26.26
(1) A non-GAAP financial measure. See "Non-GAAP Financial Measures" for a reconciliation to the most comparable GAAP equivalents.

40

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 June 30,
	2024						2023
	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)	$	4,419,697	$	62,581	5.69	%	$	4,003,717	$	50,439	5.05	%
Taxable investment securities	1,520,253		9,228		2.44		1,698,003		9,734		2.30
Tax-exempt investment securities (2)(4)	322,092		2,040		2.55		345,934		2,253		2.61
Total securities held for investment (2)	1,842,345		11,268		2.46		2,043,937		11,987		2.35
Other	20,452		242		4.76		9,078		68		3.00
Total interest earning assets (2)	$	6,282,494	$	74,091	4.74	%	$	6,056,732	$	62,494	4.14	%
Other assets	431,079						409,078
Total assets	$	6,713,573					$	6,465,810
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest checking deposits	$	1,297,356	$	3,145	0.97	%	$	1,420,741	$	1,971	0.56	%
Money market deposits	1,072,688		7,821		2.93		999,436		5,299		2.13
Savings deposits	738,773		2,673		1.46		603,905		288		0.19
Time deposits	1,470,956		15,303		4.18		1,490,332		12,559		3.38
Total interest bearing deposits	4,579,773		28,942		2.54		4,514,414		20,117		1.79
Securities sold under agreements to repurchase	5,300		10		0.76		159,583		423		1.06
Other short-term borrowings	442,546		5,399		4.91		132,495		1,695		5.13
Total short-term borrowings	447,846		5,409		4.86		292,078		2,118		2.91
Long-term debt	120,256		2,078		6.95		135,329		2,153		6.38
Total borrowed funds	568,102		7,487		5.30		427,407		4,271		4.01
Total interest bearing liabilities	$	5,147,875	$	36,429	2.85	%	$	4,941,821	$	24,388	1.98	%
Noninterest bearing deposits	935,151						940,103
Other liabilities	96,553						78,898
Shareholders’ equity	533,994						504,988
Total liabilities and shareholders’ equity	$	6,713,573					$	6,465,810
Net interest income (2)			$	37,662					$	38,106
Net interest spread(2)					1.89	%					2.16	%
Net interest margin(2)					2.41	%					2.52	%
Total deposits(5)	$	5,514,924	$	28,942	2.11	%	$	5,454,517	$	20,117	1.48	%
Cost of funds(6)					2.41	%					1.66	%

(1)	Average balance includes nonaccrual loans.
(2)	Tax equivalent (a non-GAAP financial measure - see the "Non-GAAP Presentations" section for a reconciliation to the most comparable GAAP 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 $337 thousand and $79 thousand for the three months ended June 30, 2024 and June 30, 2023, respectively. Loan purchase discount accretion was $1.3 million and $1.0 million for the three months ended June 30, 2024 and June 30, 2023, respectively. Tax equivalent adjustments were $938 thousand and $713 thousand for the three months ended June 30, 2024 and June 30, 2023, respectively. The federal statutory tax rate utilized was 21%.
(4)	Interest income includes tax equivalent adjustments of $377 thousand and $431 thousand for the three months ended June 30, 2024 and June 30, 2023, 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.

41

The following table shows changes to 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) 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 June 30,
	2024 Compared to 2023
	Change due to
(in thousands)	Volume		Yield/Cost		Net
Increase (decrease) in interest income:
Loans, including fees (1)	$	5,470	$	6,672	$	12,142
Taxable investment securities	(1,067)		561		(506)
Tax-exempt investment securities (1)	(159)		(54)		(213)
Total securities held for investment (1)	(1,226)		507		(719)
Other	118		56		174
Change in interest income (1)	4,362		7,235		11,597
Increase (decrease) in interest expense:
Interest checking deposits	(183)		1,357		1,174
Money market deposits	412		2,110		2,522
Savings deposits	77		2,308		2,385
Time deposits	(166)		2,910		2,744
Total interest-bearing deposits	140		8,685		8,825
Securities sold under agreements to repurchase	(320)		(93)		(413)
Other short-term borrowings	3,779		(75)		3,704
Total short-term borrowings	3,459		(168)		3,291
Long-term debt	(255)		180		(75)
Total borrowed funds	3,204		12		3,216
Change in interest expense	3,344		8,697		12,041
Change in net interest income	$	1,018	$	(1,462)	$	(444)
Percentage increase in net interest income over prior period					(1.2)		%
(1) Tax equivalent, using a federal statutory tax rate of 21%.

Our tax equivalent net interest income for the second quarter of 2024 was $37.7 million, a decrease of $0.4 million, or 1.2%, as compared to $38.1 million for the second quarter of 2023. The decrease in tax equivalent net interest income in the second quarter of 2024 as compared to the second quarter of 2023 was due primarily to an increase in interest expense on interest bearing deposits and borrowed funds of $8.8 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 $0.7 million, or 6.0%, in interest income earned from investment securities, which stemmed from lower volumes. Partially offsetting these decreases was an increase of $12.1 million, or 24.1%, in loan interest income due primarily to higher yields coupled with increased volumes from acquired DNVB loans, organic loan growth, and additional line of credit usage. The increased loan volumes were partially offset by loans divested in the sale of our Florida banking operations.

The tax equivalent net interest margin for the second quarter of 2024 declined to 2.41% from 2.52% for the second quarter of 2023, driven by higher funding costs and volumes, partially offset by higher interest earning asset volumes and yields. The cost of interest bearing liabilities increased 87 bps to 2.85%, due to interest bearing deposit costs of 2.54%, short-term borrowing costs of 4.86%, and long-term debt costs of 6.95%, which increased 75 bps, 195 bps and 57 bps, respectively from the second quarter of 2023. Partially offsetting these identified decreases to tax equivalent net interest margin from the second quarter of 2023, was the increase in loan yields of 64 bps.

Credit Loss Expense

Credit loss expense of $1.3 million was recorded during the second quarter of 2024, as compared to $1.6 million of credit loss expense recorded in the second quarter of 2023. Credit loss expense in the current quarter reflected an additional liability of $0.8 million for unfunded loan commitments, coupled with an additional reserve taken to support organic loan growth. Net charge-offs were $0.5 million in the second quarter of 2024, as compared to net charge-offs of $0.9 million in the second quarter of 2023. The estimation model utilized by the Company is sensitive to changes in the following forecast inputs: (1) Midwest and national unemployment, (2) year-to-year change in national retail sales, (3) year-to-year change in the CRE Index, and (4) year-to-year change in U.S. GDP. 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.

42

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 June 30,
(dollars in thousands)	2024		2023		$ Change		% Change
Investment services and trust activities	$	3,504	$	3,119	$	385	12.3	%
Service charges and fees	2,156		2,047		109		5.3
Card revenue	1,907		1,847		60		3.2
Loan revenue	1,525		909		616		67.8
Bank-owned life insurance	668		616		52		8.4
Investment securities gains (losses), net	33		(2)		35		n/m
Other	11,761		210		11,551		n/m
Total noninterest income	$	21,554	$	8,746	$	12,808	146.4	%
(n/m) - Not meaningful

Total noninterest income for the second quarter of 2024 increased $12.8 million to $21.6 million, from $8.7 million in the second quarter of 2023, primarily due to the sale of our Florida banking operations, which resulted in a gain on sale of $11.1 million that was recorded in other revenue. Loan revenue increased $0.6 million and reflected the favorable year-over-year change in the fair value of our mortgage servicing rights, from a negative adjustment of $581 thousand in the second quarter of 2023 to a positive adjustment of $129 thousand in the second quarter of 2024. Also contributing to the increase in noninterest income compared to the second quarter of 2023, was an increase of $0.5 million in customer back to back swap origination fee income, which was recorded in other revenue, and an increase of $0.4 million in investment services and trust activities revenue, driven by growth in assets under administration and market valuation.

Noninterest Expense

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

	Three Months Ended June 30,
(dollars in thousands)	2024		2023		$ Change		% Change
Compensation and employee benefits	$	20,985	$	20,386	$	599	2.9	%
Occupancy expense of premises, net	2,435		2,574		(139)		(5.4)
Equipment	2,530		2,435		95		3.9
Legal and professional	2,253		1,682		571		33.9
Data processing	1,645		1,521		124		8.2
Marketing	636		1,142		(506)		(44.3)
Amortization of intangibles	1,593		1,594		(1)		(0.1)
FDIC insurance	1,051		862		189		21.9
Communications	191		260		(69)		(26.5)
Foreclosed assets, net	138		(6)		144		n/m
Other	2,304		2,469		(165)		(6.7)
Total noninterest expense	$	35,761	$	34,919	$	842	2.4	%
(n/m) - Not meaningful

43

The following table summarizes the acquisition and divestiture-related expenses incurred during the three months ended June 30, 2024 and June 30, 2023, which are included in the respective income statement line items, for the periods indicated:

	Three Months Ended June 30,
Merger-related expenses:	2024		2023
(dollars in thousands)
Compensation and employee benefits	$	73	$	—
Equipment	28		—
Legal and professional	462		—
Data processing	251		—
Communications	8		—
Other	32		—
Total merger-related expenses	$	854	$	—

Noninterest expense for the second quarter of 2024 increased $0.8 million, or 2.4%, to $35.8 million from $34.9 million for the second quarter of 2023, primarily due to increases of $0.6 million in both compensation and employee benefits and legal and professional expenses. The increase in compensation and employee benefits expenses was primarily driven by annual compensation adjustments, increased headcount as a result of the DNVB acquisition, increased incentive and commission expense, and merger-related expenses. The increase in legal and professional expenses stemmed primarily from higher merger-related expenses. Partially offsetting these increases was a decline of $0.5 million in marketing expenses.

Income Tax Expense

Our effective income tax rate, or income tax expense divided by income before income tax expense, was 24.2% for the three months ended June 30, 2024, as compared to an effective tax rate of 17.4% for the three months ended June 30, 2023. The increase reflected taxable income attributed to the Florida banking operations sale exceeding book income due to the non-deductible goodwill allocated to the Florida banking operations. The effective tax rate for the full year 2024 is expected to be in the range of 21 to 23%.

Comparison of Operating Results for the Six Months Ended June 30, 2024 and June 30, 2023

Summary

	As of and for the Six Months Ended June 30,
(dollars in thousands, except per share amounts)	2024			2023
Net Interest Income	$	71,078		$	77,038
Noninterest Income	31,304			4,700
Total Revenue, Net of Interest Expense	102,382			81,738
Credit Loss Expense	5,956			2,530
Noninterest Expense	71,326			68,238
Income Before Income Tax Expense	25,100			10,970
Income Tax Expense	6,012			1,979
Net Income	19,088			8,991
Diluted Earnings Per Share	$	1.21		$	0.57
Return on Average Assets	0.58		%	0.28		%
Return on Average Equity	7.23			3.61
Return on Average Tangible Equity(1)	9.98			5.65
Efficiency Ratio (1)	62.83			66.56
Dividend Payout Ratio	40.08			85.09
Common Equity Ratio	8.25			7.69
Tangible Common Equity Ratio(1)	6.88			6.40
Book Value per Share	$	34.44		$	31.96
Tangible Book Value per Share(1)	28.27			26.26
(1) A non-GAAP financial measure. See "Non-GAAP Financial Measures" for a reconciliation to the most comparable GAAP equivalents.

44

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:

	Six Months Ended June 30,
	2024						2023
(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)	$	4,358,957	$	121,448	5.60	%	$	3,935,791	$	97,645	5.00	%
Taxable investment securities	1,538,928		18,688		2.44		1,754,382		20,178		2.32
Tax-exempt investment securities (2)(4)	325,414		4,137		2.56		371,381		4,902		2.66
Total securities held for investment (2)	1,864,342		22,825		2.46		2,125,763		25,080		2.38
Other	25,529		660		5.20		16,919		312		3.72
Total interest-earning assets (2)	$	6,248,828	$	144,933	4.66	%	$	6,078,473	$	123,037	4.08	%
Other assets	425,648						416,304
Total assets	$	6,674,476					$	6,494,777
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest checking deposits	$	1,299,413	$	6,035	0.93	%	$	1,468,030	$	3,820	0.52	%
Money market deposits	1,087,616		15,886		2.94		965,180		8,568		1.79
Savings deposits	716,458		4,720		1.32		628,338		560		0.18
Time deposits	1,458,969		30,027		4.14		1,454,210		22,488		3.12
Total interest-bearing deposits	4,562,456		56,668		2.50		4,515,758		35,436		1.58
Securities sold under agreements to repurchase	5,315		21		0.79		152,734		873		1.15
Other short-term borrowings	426,036		10,363		4.89		121,959		3,031		5.01
Total short-term borrowings	431,351		10,384		4.84		274,693		3,904		2.87
Long-term debt	121,761		4,181		6.91		137,258		4,277		6.28
Total borrowed funds	553,112		14,565		5.30		411,951		8,181		4.00
Total interest-bearing liabilities	$	5,115,568	$	71,233	2.80	%	$	4,927,709	$	43,617	1.78	%
Noninterest bearing deposits	935,564						984,592
Other liabilities	92,581						80,690
Shareholders' equity	530,763						501,786
Total liabilities and shareholders' equity	$	6,674,476					$	6,494,777
Net interest income (2)			$	73,700					$	79,420
Net interest spread(2)					1.86	%					2.30	%
Net interest margin (2)					2.37	%					2.63	%
Total deposits(5)	$	5,498,020	$	56,668	2.07	%	$	5,500,350	$	35,436	1.30	%
Cost of funds(6)					2.37	%					1.49	%

 

(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 $574 million and $174 thousand for the six months ended June 30, 2024 and June 30, 2023, respectively. Loan purchase discount accretion was $2.4 million and $2.2 million for the six months ended June 30, 2024 and June 30, 2023, respectively. Tax equivalent adjustments were $1.9 million and $1.4 million for the six months ended June 30, 2024 and June 30, 2023, respectively. The federal statutory tax rate utilized was 21%.
(4)	Interest income includes tax equivalent adjustments of $0.8 million and $1.0 million for the six months ended June 30, 2024 and June 30, 2023, 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.

	Six Months Ended June 30,
	2024 Compared to 2023
	Change due to
(in thousands)	Volume		Yield/Cost		Net
Increase (decrease) in interest income:
Loans, including fees (1)	$	11,248	$	12,555	$	23,803
Taxable investment securities	(2,522)		1,032		(1,490)
Tax-exempt investment securities(1)	(587)		(178)		(765)
Total securities held for investment(1)	(3,109)		854		(2,255)
Other	195		153		348
Change in interest income (1)	8,334		13,562		21,896
Increase (decrease) in interest expense:
Interest checking deposits	(479)		2,694		2,215
Money market deposits	1,207		6,111		7,318
Savings deposits	90		4,070		4,160
Time deposits	75		7,464		7,539
Total interest-bearing deposits	893		20,339		21,232
Securities sold under agreements to repurchase	(644)		(208)		(852)
Other short-term borrowings	7,407		(75)		7,332
Total short-term borrowings	6,763		(283)		6,480
Long-term debt	(506)		410		(96)
Total borrowed funds	6,257		127		6,384
Change in interest expense	7,150		20,466		27,616
Change in net interest income	$	1,184	$	(6,904)	$	(5,720)
Percentage (decrease) increase in net interest income over prior period					(7.2)		%
(1) Tax equivalent, using a federal statutory tax rate of 21%.

Our tax equivalent net interest income for the six months ended June 30, 2024 was $73.7 million, a decrease of $5.7 million, or 7.2%, as compared to $79.4 million for the six months ended June 30, 2023. This decrease in tax equivalent net interest income

was due primarily to an increase in interest expense on interest bearing deposits and borrowed funds of $21.2 million and $6.4 million, respectively, due to higher costs and volumes. The decrease in tax equivalent net interest income was also due to a decrease of $2.3 million, or 9.0%, in interest income earned from investment securities, which stemmed from lower volumes. Partially offsetting these decreases was an increase of $23.8 million, or 24.4%, in loan interest income due primarily to higher yields coupled with increased volumes from acquired DNVB loans, organic loan growth, and additional line of credit usage. The increased loan volumes were partially offset by loans divested in the sale of our Florida banking operations.

The tax equivalent net interest margin for the six months ended June 30, 2024 was 2.37%, or 26 basis points lower than the tax equivalent net interest margin of 2.63% for the six months ended June 30, 2023. The cost of interest-bearing deposits increased 92 basis points for the six months ended June 30, 2024, compared to the six months ended June 30, 2023, while the cost of borrowed funds increased 130 basis points for the six months ended June 30, 2024, compared to the six months ended June 30, 2023. 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 from the six months ended June 30, 2023, was the increase in loan yields of 60 bps, which primarily reflected new loan production originated at higher yields.

Credit Loss Expense

Credit loss expense of $6.0 million was recorded in the first six months of 2024, as compared to credit loss expense of $2.5 million for the first six months of 2023. Credit loss expense in the first six months of 2024 reflected $3.2 million of day 1 credit loss expense related to the DNVB acquisition, an additional liability of $0.9 million on unfunded loan commitments, coupled with an additional reserve taken to support organic loan growth. Net charge-offs in the first six months of 2024 were $0.7 million, as compared to net charge-offs of $1.2 million in the first six months of 2023. The estimation model utilized by the Company is sensitive to changes in the following forecast inputs: (1) Midwest and national unemployment, (2) year-to-year change in national retail sales, (3) year-to-year change in the CRE Index, and (4) year-to-year change in U.S. GDP. 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

46

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:

	Six Months Ended June 30,
(dollars in thousands)	2024		2023		$ Change		% Change
Investment services and trust activities	$	7,007	$	6,052	$	955	15.8	%
Service charges and fees	4,300		4,055		245		6.0
Card revenue	3,850		3,595		255		7.1
Loan revenue	2,381		2,329		52		2.2
Bank-owned life insurance	1,328		1,218		110		9.0
Investment securities gains (losses), net	69		(13,172)		13,241		n/m
Other	12,369		623		11,746		n/m
Total noninterest income	$	31,304	$	4,700	$	26,604	566.0	%
(n/m) - Not meaningful

Total noninterest income for the first six months of 2024 increased $26.6 million to $31.3 million, from $4.7 million during the same period of 2023, primarily due to investment securities losses, net of $13.2 million recorded in the first quarter of 2023 as part of a balance sheet repositioning, which did not recur in 2024, coupled with the sale of our Florida banking operations, which resulted in a gain on sale of $11.1 million that was recorded in other revenue. Also contributing to the increase in noninterest income compared to the first six months of 2023, was a $1.0 million increase in investment services and trust activities revenue, driven by growth in assets under administration and market valuation.

Noninterest Expense

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

	Six Months Ended June 30,
(dollars in thousands)	2024		2023		$ Change		% Change
Compensation and employee benefits	$	41,915	$	39,993	$	1,922	4.8	%
Occupancy expense of premises, net	5,248		5,320		(72)		(1.4)
Equipment	5,130		4,606		524		11.4
Legal and professional	4,312		3,418		894		26.2
Data processing	3,005		2,884		121		4.2
Marketing	1,234		2,128		(894)		(42.0)
Amortization of intangibles	3,230		3,346		(116)		(3.5)
FDIC insurance	1,993		1,611		382		23.7
Communications	387		521		(134)		(25.7)
Foreclosed assets, net	496		(34)		530		n/m
Other	4,376		4,445		(69)		(1.6)
Total noninterest expense	$	71,326	$	68,238	$	3,088	4.5	%
(n/m) - Not meaningful

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The following table summarizes the acquisition and divestiture-related expenses incurred during the six months ended June 30, 2024 and June 30, 2023, which are included in the respective income statement line items, for the periods indicated:

Merger-related expenses:	Six Months Ended June 30,
(dollars in thousands)	2024		2023
Compensation and employee benefits	$	314	$	70
Occupancy expense of premises, net	152		—
Equipment	177		—
Legal and professional	1,035		—
Data processing	312		65
Marketing	32		—
Communications	9		—
Other	137		1
Total merger-related expenses	$	2,168	$	136

Noninterest expense for the six months ended June 30, 2024 was $71.3 million, an increase of $3.1 million, or 4.5%, from $68.2 million for the six months ended June 30, 2023, primarily due to increases of $1.9 million, $0.9 million, $0.5 million, and $0.5 million in compensation and employee benefits, legal and professional, foreclosed assets, net, and equipment expenses. The increase in compensation and employee benefits expense was primarily driven by annual compensation adjustments, increased headcount as a result of the DNVB acquisition, increased incentive and commission expense, and merger-related expenses. The increase in legal and professional expense stemmed primarily from higher merger-related expenses. The increase in foreclosed assets, net, was primarily due to a $0.3 million write-down of other real estate owned. The increase in equipment expense reflected higher software costs and merger-related expenses. Partially offsetting these increases was a decline of $0.9 million in marketing expense.

Income Tax Expense

Our effective income tax rate, or income tax expense divided by income before tax expense, was 24.0% for the first six months of 2024, as compared to an effective tax rate of 18.0% for the first six months of 2023. The increase in the effective tax rate reflected the taxable income attributed to the Florida banking operations sale exceeding book income due to the non-deductible goodwill allocated to the Florida banking operations, coupled with higher taxable income and a decreased benefit from tax exempt income. The effective tax rate for the full year 2024 is expected to be in the range of 21.0 to 23.0%.

FINANCIAL CONDITION

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

(dollars in thousands)	June 30, 2024		December 31, 2023		$ Change		% Change
ASSETS
Cash and cash equivalents	$	101,568	$	81,727	$	19,841	24.3	%
Loans held for sale	2,850		1,045		1,805		172.7
Debt securities available for sale at fair value	771,034		795,134		(24,100)		(3.0)
Held to maturity securities at amortized cost	1,053,080		1,075,190		(22,110)		(2.1)
Loans held for investment, net of unearned income	4,287,232		4,126,947		160,285		3.9
Allowance for credit losses	(53,900)		(51,500)		(2,400)		4.7
Total loans held for investment, net	4,233,332		4,075,447		157,885		3.9
Other assets	419,794		398,997		20,797		5.2
Total assets	$	6,581,658	$	6,427,540	$	154,118	2.4	%
LIABILITIES AND SHAREHOLDERS' EQUITY
Total deposits	$	5,412,419	$	5,395,673	$	16,746	0.3	%
Total borrowings	529,523		423,560		105,963		25.0
Other liabilities	96,430		83,929		12,501		14.9
Total shareholders' equity	543,286		524,378		18,908		3.6
Total liabilities and shareholders' equity	$	6,581,658	$	6,427,540	$	154,118	2.4	%

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Debt Securities

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

	June 30, 2024				December 31, 2023
(dollars in thousands)	Balance		% of Total		Balance		% of Total
Available for Sale
U.S. Treasuries	$	250	—	%	$	—	—	%
States and political subdivisions	113,902		14.8		130,139		16.4
Mortgage-backed securities	5,096		0.7		5,311		0.7
Collateralized loan obligations	52,667		6.8		50,437		6.3
Collateralized mortgage obligations	172,628		22.4		169,196		21.3
Corporate debt securities	426,491		55.3		440,051		55.3
Fair value of debt securities available for sale	$	771,034	100.0	%	$	795,134	100.0	%
Held to Maturity
States and political subdivisions	$	531,332	50.5	%	$	532,422	49.5	%
Mortgage-backed securities	71,993		6.8		74,904		7.0
Collateralized mortgage obligations	449,755		42.7		467,864		43.5
Amortized cost of debt securities held to maturity	$	1,053,080	100.0	%	$	1,075,190	100.0	%

As of June 30, 2024, there was $310 thousand of gross unrealized gains and $73.2 million of gross unrealized losses in our debt securities available for sale portfolio for a net unrealized loss of $72.9 million. As of June 30, 2024 there were no gross unrealized gains and $195.7 million of gross unrealized losses in our held to maturity debt securities.

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

Loans

The composition of our loan portfolio by type of loan was as follows, as of the dates indicated:

	June 30, 2024				December 31, 2023
(dollars in thousands)	Balance		% of Total		Balance		% of Total
Agricultural	$	107,983	2.5	%	$	118,414	2.9	%
Commercial and industrial	1,120,983		26.1		1,075,003		26.0
Commercial real estate	2,313,856		54.0		2,225,310		54.0
Residential real estate	668,646		15.6		640,437		15.5
Consumer	75,764		1.8		67,783		1.6
Loans held for investment, net of unearned income	$	4,287,232	100.0	%	$	4,126,947	100.0	%
Loans held for sale	$	2,850			$	1,045

Loans held for investment, net of unearned income, at June 30, 2024, increased $160.3 million, or 3.9%, from December 31, 2023 to $4.29 billion, driven primarily by loans acquired in the DNVB acquisition, organic loan growth, and higher line of credit usage, partially offset by gross loans of $163.6 million divested as part of the sale of our Florida banking operations. 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 79.21% as of June 30, 2024, as compared to 76.49% as of December 31, 2023.

Commitments under standby letters of credit, unused lines of credit and other conditionally approved credit lines totaled approximately $1.20 billion and $1.21 billion as of June 30, 2024 and December 31, 2023, respectively.

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The composition of our commercial real estate loan portfolio as of June 30, 2024 was as follows:

(dollars in thousands)	Amount		% of Total Loans
Construction & Development	$	351,646	8.2	%
Farmland	183,641		4.3
Multifamily	430,054		10.0
CRE Other:
NOO CRE Office	157,129		3.7
OO CRE Office	84,649		2.0
Industrial and Warehouse	407,294		9.5
Retail	262,030		6.1
Hotel	112,757		2.6
Other	324,656		7.6
Total CRE	$	2,313,856	54.0	%

Nonperforming Assets

The following table sets forth information concerning nonperforming loans by class of receivable and our nonperforming assets at June 30, 2024 and December 31, 2023:

(in thousands)	June 30, 2024			December 31, 2023
Nonaccrual loans held for investment	$	24,695		$	25,891
Accruing loans contractually past due 90 days or more	433			468
Total nonperforming loans	25,128			26,359
Foreclosed assets, net	6,053			3,929
Total nonperforming assets	31,181			30,288
Nonaccrual loans ratio (1)	0.58		%	0.63		%
Nonperforming loans ratio (2)	0.59		%	0.64		%
Nonperforming assets ratio (3)	0.47		%	0.47		%
(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, 2023, nonperforming loans and asset ratios improved, with declines in both ratios of 5 basis points.

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 Special Mention/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. This information is used in the determination of the initial loan risk rating. Segregation of owner-occupied and non-owner occupied residential real estate loans is made at the time of origination. 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 $7.5 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 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 Special Mention/Watch (risk rating 5) or Classified (risk ratings 6 through 8) status is warranted. At least quarterly, the loan strategy committee will meet to

50

discuss loan relationships with total exposure of $1.0 million or above that are Special Mention/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 months ended June 30, 2024, the amortized cost of the loans that were modified to borrowers in financial distress was $6.0 million, which represented 0.14% of total loans held for investment, net of unearned income. For the six months ended June 30, 2024, the amortized cost of the loans that were modified to borrowers in financial distress was $7.0 million, which represented 0.16% of total loans held for investment, net of unearned income.

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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:

	June 30, 2024					December 31, 2023
(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	$	402		2.5	%	$	613		2.9	%
Commercial and industrial	23,008			26.1		21,743			26.0
Commercial real estate	24,324			54.0		23,759			54.0
Residential real estate	4,659			15.6		4,762			15.5
Consumer	1,507			1.8		623			1.6
Total	$	53,900		100.0	%	$	51,500		100.0	%
Allowance for credit losses ratio(1)	1.26		%			1.25		%
Allowance for credit losses to nonaccrual loans ratio(2)	218.26		%			198.91		%
(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 June 30, 2024 and 2023
(in thousands)	Agricultural			Commercial and Industrial			Commercial Real Estate			Residential Real Estate			Consumer			Total
For the Three Months Ended June 30, 2024
Charge-offs	$	—		$	(469)		$	—		$	(56)		$	(260)		$	(785)
Recoveries	—			223			6			4			28			261
Net (charge-offs) recoveries	$	—		$	(246)		$	6		$	(52)		$	(232)		$	(524)
Net (charge-off) recovery ratio(1)	—		%	(0.02)		%	—		%	—		%	(0.02)		%	(0.05)		%
For the Three Months Ended June 30, 2023
Charge-offs	$	—		$	(189)		$	(812)		$	(33)		$	(125)		$	(1,159)
Recoveries	1			195			6			16			44			262
Net (charge-offs) recoveries	$	1		$	6		$	(806)		$	(17)		$	(81)		$	(897)
Net (charge-off) recovery ratio(1)	—		%	—		%	(0.08)		%	—		%	(0.01)		%	(0.09)		%
	For the Six Months Ended June 30, 2024 and 2023
(in thousands)	Agricultural			Commercial and Industrial			Commercial Real Estate			Residential Real Estate			Consumer			Total
For the Six Months Ended June 30, 2024
Charge-offs	$	(4)		$	(768)		$	(35)		$	(75)		$	(550)		$	(1,432)
Recoveries	355			269			14			13			68			719
Net (charge-offs) recoveries	$	351		$	(499)		$	(21)		$	(62)		$	(482)		$	(713)
Net (charge-off) recovery ratio(1)	0.02		%	(0.02)		%	—		%	—		%	(0.02)		%	(0.03)		%
For the Six Months Ended June 30, 2023
Charge-offs	$	(1)		$	(509)		$	(830)		$	(33)		$	(273)		$	(1,646)
Recoveries	27			270			11			20			88			416
Net (charge-offs) recoveries	$	26		$	(239)		$	(819)		$	(13)		$	(185)		$	(1,230)
Net (charge-off) recovery ratio(1)	—		%	(0.01)		%	(0.04)		%	—		%	(0.01)		%	(0.06)		%
(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.

Actual Results: Our ACL as of June 30, 2024 was $53.9 million, which was 1.26% of loans held for investment, net of unearned income as of that date. This compares with an ACL of $51.5 million as of December 31, 2023, which was 1.25% of loans held for investment, net of unearned income. The increase in the ACL primarily reflected the $3.1 million of day 1 credit

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loss expense related to the acquired DNVB loans, as well as an additional reserve taken to support organic loan growth, partially offset by the $1.9 million of allowance divested in the sale of our Florida banking operations. The liability for off-balance sheet credit exposures totaled $5.5 million as of June 30, 2024 and $4.6 million as of December 31, 2023, and is included in 'Other liabilities' on the balance sheet.

The Company recorded a credit loss expense related to loans of $5.1 million for the six months ended June 30, 2024, as compared to credit loss expense related to loans of $2.4 million for the six months ended June 30, 2023. Gross charge-offs for the first six months of 2024 totaled $1.4 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 six months of 2024 was 0.03% compared to 0.06% for the six months ended June 30, 2023.

Economic Forecast: At June 30, 2024, the economic forecast used by the Company showed the following: (1) Midwest unemployment – increases over the next four forecasted quarters; (2) National unemployment - increases over the next three forecasted quarters, with a decrease in the fourth forecasted quarter; (3) year-to-year change in national retail sales - increases over the next four forecasted quarters; (4) year-to-year change in CRE Index - decreases over the next four forecasted quarters; and (5) year-to-year change in U.S. GDP - 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 relationships greater than $250 thousand 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. 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. Upon the Company's determination that a loan balance has been deemed uncollectible, the uncollectible balance is charged-off.

Based on the inherent risk in the loan portfolio, management believed that as of June 30, 2024, 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 June 30, 2024				As of December 31, 2023
(in thousands)	Balance		% of Total		Balance		% of Total
Noninterest bearing deposits	$	882,472	16.3	%	$	897,053	16.6	%
Interest checking deposits	1,284,243		23.7		1,320,435		24.5
Money market deposits	1,043,376		19.3		1,105,493		20.5
Savings deposits	745,639		13.8		650,655		12.1
Total non-maturity deposits	3,955,730		73.0		3,973,636		73.7
Time deposits of $250 and under	999,301		18.5		973,253		18.0
Time deposits over $250	457,388		8.5		448,784		8.3
Total time deposits	$	1,456,689	27.0	%	$	1,422,037	26.3	%
Total deposits	$	5,412,419	100.0	%	$	5,395,673	100.0	%

Deposits increased $16.7 million from December 31, 2023, or 0.3%, primarily due to the $224.2 million of deposits assumed in the DNVB acquisition, which more than offset the $133.3 million of deposits divested as part of the sale of our Florida banking operations. Brokered time deposits of $196.0 million and $221.0 million at June 30, 2024 and December 31, 2023, respectively, are included in the table above within "Time deposits of $250 and under”. Core deposits, which include the total of all deposits other than time deposits over $250 thousand and non-reciprocal brokered deposits, were approximately 87.9% of our total deposits as of June 30, 2024, compared to 87.6% at December 31, 2023. See Note 8. Deposits to our consolidated financial statements for additional information related to our deposits.

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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)	June 30, 2024		December 31, 2023
Securities sold under agreements to repurchase	$	5,684	$	5,064
Federal Home Loan Bank advances	4,000		10,200
Federal Reserve Bank borrowings	405,000		285,000
Total short-term borrowings	$	414,684	$	300,264
Junior subordinated notes issued to capital trusts	42,382		42,293
Subordinated debentures	64,203		64,137
Finance lease payable	504		604
Federal Home Loan Bank borrowings	250		6,262
Other long-term debt	7,500		10,000
Total long-term debt	$	114,839	$	123,296

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:

	June 30, 2024			December 31, 2023
Common equity ratio	8.25		%	8.16		%
Tangible common equity ratio(1)	6.88		%	6.90		%
Total risk-based capital ratio	12.62		%	12.53		%
Tier 1 risk-based capital ratio	10.35		%	10.38		%
Common equity tier 1 risk-based capital ratio	9.56		%	9.59		%
Tier 1 leverage ratio	8.29		%	8.58		%
Book value per share	$	34.44		$	33.41
Tangible book value per share(1)	$	28.27		$	27.90
(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 $543.3 million as of June 30, 2024, compared to $524.4 million as of December 31, 2023, an increase of $18.9 million, or 3.6%, due primarily to an increase in retained earnings, and a reduction in each of accumulated other comprehensive loss and treasury stock, partially offset by a decline in additional paid-in capital.

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 June 30, 2024, 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, 2024, in the aggregate amount of 104,326. Restricted stock units were also granted to directors of the Company and the Bank on May 15, 2024, in the aggregate amount of 17,264. Additionally, during the first six months of 2024, 100,470 shares of common stock were issued in connection with the vesting of previously awarded grants of restricted stock units, of which 21,308 shares were surrendered by grantees to satisfy tax requirements, and 6,883 unvested restricted stock units were forfeited.

Liquidity

Liquidity risk management involves meeting the cash flow requirements of depositors and borrowers. We conduct liquidity risk management on both a daily and long-term basis, and adjust our investments in liquid assets based on expected loan demand,

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projected loan maturities and payments, expected deposit flows, yields available on interest-bearing deposits, and the objectives of our asset/liability management program. Generally, excess liquidity is invested 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 June 30, 2024		As of December 31, 2023
Cash and due from banks	$	66,228	$	76,237
Interest-bearing deposits	35,340		5,479
Federal funds sold	—		11
Total	$	101,568	$	81,727

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 $34.8 million for the six months ended June 30, 2024 and $40.9 million for the six months ended June 30, 2023.

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 sustained high interest rates and inflationary pressure, which negatively impact mortgage originations and mortgage banking revenue. Additionally, the economic impact of the sustained higher levels of inflation and higher 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 additional 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.

Contractual Obligations

There have been no material changes to the Company's contractual obligations existing at December 31, 2023, as disclosed in the Annual Report on Form 10-K, filed with the SEC on March 8, 2024.

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

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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.

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

	Three Months Ended						Six Months Ended
Return on Average Tangible Equity	June 30, 2024			June 30, 2023			June 30, 2024			June 30, 2023
(Dollars in thousands)
Net income	$	15,819		$	7,594		$	19,088		$	8,991
Intangible amortization, net of tax (1)	1,195			1,196			2,423			2,510
Tangible net income	$	17,014		$	8,790		$	21,511		$	11,501
Average shareholders' equity	$	533,994		$	504,988		$	530,763		$	501,786
Average intangible assets, net	(99,309)			(90,258)			(97,302)			(91,125)
Average tangible equity	$	434,685		$	414,730		$	433,461		$	410,661
Return on average equity	11.91		%	6.03		%	7.23		%	3.61		%
Return on average tangible equity (2)	15.74		%	8.50		%	9.98		%	5.65		%
(1) Computed assuming a combined marginal income tax rate of 25%.
(2) Annualized tangible net income divided by average tangible equity.

Tangible Common Equity/Tangible Book Value per Share / Tangible Common Equity Ratio	June 30, 2024			December 31, 2023
(Dollars in thousands, except per share data)
Total shareholders’ equity	$	543,286		$	524,378
Intangible assets, net	(97,327)			(86,546)
Tangible common equity	$	445,959		$	437,832
Total assets	$	6,581,658		$	6,427,540
Intangible assets, net	(97,327)			(86,546)
Tangible assets	$	6,484,331		$	6,340,994
Book value per share	$	34.44		$	33.41
Tangible book value per share (1)	$	28.27		$	27.90
Shares outstanding	15,773,468			15,694,306
Equity to assets ratio	8.25		%	8.16		%
Tangible common equity ratio (2)	6.88		%	6.90		%
(1) Tangible common equity divided by shares outstanding.
(2) Tangible common equity divided by tangible assets.

	Three Months Ended						Six Months Ended
Efficiency Ratio	June 30, 2024			June 30, 2023			June 30, 2024			June 30, 2023
(dollars in thousands)
Total noninterest expense	$	35,761		$	34,919		$	71,326		$	68,238
Amortization of intangibles	(1,593)			(1,594)			(3,230)			(3,346)
Merger-related expenses	(854)			—			(2,168)			(136)
Noninterest expense used for efficiency ratio	$	33,314		$	33,325		$	65,928		$	64,756
Net interest income, tax equivalent(1)	$	37,662		$	38,106		$	73,700		$	79,420
Noninterest income	21,554			8,746			31,304			4,700
Investment security (gains) losses, net	(33)			2			(69)			13,172
Net revenues used for efficiency ratio	$	59,183		$	46,854		$	104,935		$	97,292
Efficiency ratio(2)	56.29		%	71.13		%	62.83		%	66.56		%
(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) losses, net.

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	Three Months Ended						Six Months Ended
Net Interest Margin, Tax Equivalent/Core Net Interest Margin	June 30, 2024			June 30, 2023			June 30, 2024			June 30, 2023
(dollars in thousands)
Net interest income	$	36,347		$	36,962		$	71,078		$	77,038
Tax equivalent adjustments:
Loans (1)	938			713			1,858			1,429
Securities (1)	377			431			764			953
Net interest income, tax equivalent	$	37,662		$	38,106		$	73,700		$	79,420
Loan purchase discount accretion	(1,261)			(984)			(2,413)			(2,173)
Core net interest income	$	36,401		$	37,122		$	71,287		$	77,247
Net interest margin	2.33		%	2.45		%	2.29		%	2.56		%
Net interest margin, tax equivalent (2)	2.41		%	2.52		%	2.37		%	2.63		%
Core net interest margin (3)	2.33		%	2.46		%	2.29		%	2.56		%
Average interest earning assets	$	6,282,494		$	6,056,732		$	6,248,828		$	6,078,473
(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.

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 $34.8 million in the first six months of 2024, compared with $40.9 million in the first six months of 2023. Net cash outflows from investing activities were $0.7 million in the first six months of 2024, compared to net cash inflows of $92.4 million in the comparable six month period of 2023. Net cash outflows from financing activities in the first six months of 2024 were $14.3 million, compared with net cash outflows of $75.1 million for the same period of 2023.

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 June 30, 2024, the Bank maintains several unsecured federal funds lines totaling $135.0 million, which lines are tested annually to ensure availability.

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Federal Reserve Bank Discount Window and Bank Term Funding Program - The Federal Reserve Bank Discount Window and the BTFP are additional sources of liquidity, particularly during periods of economic uncertainty or stress. Effective March 11, 2024, no new loans will be made under the BTFP. As of June 30, 2024, the Bank had investment securities consisting primarily of corporate debt, state and political subdivisions, mortgage backed, and collateralized mortgage obligations, with an approximate market value of $771.3 million, pledged to the Federal Reserve Bank of Chicago for liquidity purposes and had additional borrowing capacity of $413.5 million. There were no outstanding borrowings through the FRB Discount Window at June 30, 2024. There were $405.0 million of Bank Term Funding Program borrowings outstanding at June 30, 2024.

Federal Home Loan Bank Advances - FHLB advances provide both a source of liquidity and long-term funding for the Bank. All credit exposure, including advances and federal funds borrowings 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 credit limit established by the FHLBDM is equal to 45% of the Bank's total assets. This credit capacity limit includes short-term and long-term borrowings, federal funds, letters of credit, and other sources of credit exposure to the FHLB. As of June 30, 2024, the Bank had $4.0 million short-term FHLB advances and $0.3 million in long-term FHLB borrowings and additional borrowing capacity of $861.1 million.

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 20% 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 $196.0 million as of June 30, 2024 and $221.0 million as of December 31, 2023.

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 $5.0 billion, with some exceptions for financial institutions that do not meet such criteria. At June 30, 2024, the Company had $24.5 million of reciprocal time deposits, $114.7 million of reciprocal interest bearing non-maturity deposits, and $52.0 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 15% of total assets. There were no outstanding brokered repurchase agreements at June 30, 2024.

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

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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, 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
June 30, 2024
Dollar change	$	(335)		$	(926)		$	823		$	1,220
Percent change	(0.2)		%	(0.6)		%	0.5		%	0.8		%
December 31, 2023
Dollar change	$	1,280		$	(347)		$	229		$	111
Percent change	0.9		%	(0.2)		%	0.2		%	0.1		%

As of June 30, 2024, 36.8% of the Company’s earning asset balances will reprice or are expected to pay down in the next twelve months, and 40.0% 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,

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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 June 30, 2024.

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 June 30, 2024 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, 2023, filed with the SEC on March 8, 2024.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Repurchase of Equity Securities

The following table sets forth information about the Company’s purchases of its common stock during the second quarter of 2024:

	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
April 1 - 30, 2024	—	$	—	—	$	15,000,000
May 1 - 31, 2024	30	21.66		—	15,000,000
June 1 - 30, 2024	—	—		—	15,000,000
Total	30	$	21.66	—	$	15,000,000

(1) During the three months ended June 30, 2024, no shares were repurchased by the Company under the current share repurchase program, while 30 shares were surrendered by employees of the Company to pay withholding taxes on vesting of restricted stock unit awards.

(2) On April 27, 2023, the Board of Directors of the Company approved the current share repurchase program, allowing for the repurchase of up to $15.0 million of the Company's common stock through December 31, 2025. Since April 28, 2023 and through June 30, 2024, 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.

Item 5. Other Information.

During the fiscal quarter ended June 30, 2024, 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."

62

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
10.1	Third Amendment to the Credit Agreement by and between MidWestOne Financial Group, Inc. and U.S. Bank National Association dated February 12, 2024	Exhibit 10.11 to the Company's Annual Report on Form 10-K filed with the SEC on March 8, 2024
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 June 30, 2024, 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

63

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:	August 6, 2024	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)

64

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:	August 6, 2024

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:	August 6, 2024

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:	August 6, 2024

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 June 30, 2024, 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:	August 6, 2024

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 June 30, 2024, 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:	August 6, 2024

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 June 30, 2024, 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:	August 6, 2024

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	6 Months Ended
	Jun. 30, 2024	Aug. 01, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
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		15,773,468
Entity Central Index Key	0001412665
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
ASSETS
Cash and due from banks	$ 66,228	$ 76,237
Interest earning deposits in banks	35,340	5,479
Federal funds sold	0	11
Total cash and cash equivalents	101,568	81,727
Debt securities available for sale at fair value	771,034	795,134
Held to maturity securities at amortized cost	1,053,080	1,075,190
Total securities	1,824,114	1,870,324
Loans held for sale	2,850	1,045
Gross loans held for investment	4,304,619	4,138,352
Unearned income, net	(17,387)	(11,405)
Loans held for investment, net of unearned income	4,287,232	4,126,947
Allowance for credit losses	(53,900)	(51,500)
Total loans held for investment, net	4,233,332	4,075,447
Premises and equipment, net	91,793	85,742
Goodwill	69,388	62,477
Other intangible assets, net	27,939	24,069
Foreclosed assets, net	6,053	3,929
Other assets	224,621	222,780
Total assets	6,581,658	6,427,540
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest bearing deposits	882,472	897,053
Interest bearing deposits	4,529,947	4,498,620
Total deposits	5,412,419	5,395,673
Short-term borrowings	414,684	300,264
Long-term debt	114,839	123,296
Other liabilities	96,430	83,929
Total liabilities	6,038,372	5,903,162
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 15,773,468 and 15,694,306	16,581	16,581
Additional paid-in capital	300,831	302,157
Retained earnings	306,030	294,784
Treasury stock at cost, 807,549 and 886,711 shares	(22,021)	(24,245)
Accumulated other comprehensive loss	(58,135)	(64,899)
Total shareholders' equity	543,286	524,378
Total liabilities and shareholders' equity	$ 6,581,658	$ 6,427,540

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
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)	15,773,468	15,694,306
Treasury stock (in shares)	807,549	886,711

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Interest income
Loans, including fees	$ 61,643	$ 49,726	$ 119,590	$ 96,216
Taxable investment securities	9,228	9,734	18,688	20,178
Tax-exempt investment securities	1,663	1,822	3,373	3,949
Other	242	68	660	312
Total interest income	72,776	61,350	142,311	120,655
Interest expense
Deposits	28,942	20,117	56,668	35,436
Short-term borrowings	5,409	2,118	10,384	3,904
Long-term debt	2,078	2,153	4,181	4,277
Total interest expense	36,429	24,388	71,233	43,617
Net interest income	36,347	36,962	71,078	77,038
Credit loss expense	1,267	1,597	5,956	2,530
Net interest income after credit loss expense	35,080	35,365	65,122	74,508
Noninterest income
Investment services and trust activities	3,504	3,119	7,007	6,052
Service charges and fees	2,156	2,047	4,300	4,055
Card revenue	1,907	1,847	3,850	3,595
Loan revenue	1,525	909	2,381	2,329
Bank-owned life insurance	668	616	1,328	1,218
Investment securities gains (losses), net	33	(2)	69	(13,172)
Other	11,761	210	12,369	623
Total noninterest income	21,554	8,746	31,304	4,700
Noninterest expense
Compensation and employee benefits	20,985	20,386	41,915	39,993
Occupancy expense of premises, net	2,435	2,574	5,248	5,320
Equipment	2,530	2,435	5,130	4,606
Legal and professional	2,253	1,682	4,312	3,418
Data processing	1,645	1,521	3,005	2,884
Marketing	636	1,142	1,234	2,128
Amortization of intangibles	1,593	1,594	3,230	3,346
FDIC insurance	1,051	862	1,993	1,611
Communications	191	260	387	521
Foreclosed assets, net	138	(6)	496	(34)
Other	2,304	2,469	4,376	4,445
Total noninterest expense	35,761	34,919	71,326	68,238
Income before income tax expense	20,873	9,192	25,100	10,970
Income tax expense	5,054	1,598	6,012	1,979
Net income	$ 15,819	$ 7,594	$ 19,088	$ 8,991
Per common share information
Earnings - basic (in dollars per share)	$ 1.00	$ 0.48	$ 1.21	$ 0.57
Earnings - diluted (in dollars per share)	1.00	0.48	1.21	0.57
Dividends paid (in dollars per share)	$ 0.2425	$ 0.2425	$ 0.4850	$ 0.4850

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 15,819	$ 7,594	$ 19,088	$ 8,991
Unrealized gain (loss) from AFS debt securities:
Unrealized net gain (loss) on debt securities AFS	3,023	(8,795)	5,174	(9,080)
Reclassification adjustment for (gains) losses included in net income	(33)	2	(69)	13,172
Reclassification of the change in fair value of AFS debt securities attributable to change in hedged risk	104	0	986	0
Income tax (expense) benefit	(783)	2,222	(1,541)	(1,038)
Unrealized net gain (loss) on AFS debt securities, net of reclassification adjustments	2,311	(6,571)	4,550	3,054
Reclassification of AFS debt securities to HTM:
Amortization of the net unrealized loss from the reclassification of AFS debt securities to HTM	489	601	990	1,182
Income tax expense	(124)	(152)	(251)	(299)
Amortization of net unrealized loss from the reclassification of AFS debt securities to HTM, net	365	449	739	883
Unrealized gain (loss) from cash flow hedging instruments:
Unrealized net gains in cash flow hedging instruments	778	3,321	3,550	3,459
Reclassification adjustment for net gain in cash flow hedging instruments included in income	(787)	(238)	(1,575)	(238)
Income tax (expense) benefit	2	(780)	(500)	(815)
Unrealized net gains (losses) on cash flow hedge instruments, net of reclassification adjustment	(7)	2,303	1,475	2,406
Other comprehensive income (loss), net of tax	2,669	(3,819)	6,764	6,343
Comprehensive income	$ 18,488	$ 3,775	$ 25,852	$ 15,334

XML

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, 2022	$ 492,793	$ 16,581	$ 302,085	$ 289,289	$ (26,115)	$ (89,047)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	8,991			8,991
Other comprehensive (loss) income	6,343					6,343
Release/lapse of restriction on RSUs	(554)		(2,034)	(127)	1,607
Share-based compensation	1,373		1,373
Dividends paid on common stock	(7,605)			(7,605)
Ending balance at Jun. 30, 2023	501,341	16,581	301,424	290,548	(24,508)	(82,704)
Beginning balance at Mar. 31, 2023	500,650	16,581	300,966	286,767	(24,779)	(78,885)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,594			7,594
Other comprehensive (loss) income	(3,819)					(3,819)
Release/lapse of restriction on RSUs	(5)		(267)	(9)	271
Share-based compensation	725		725
Dividends paid on common stock	(3,804)			(3,804)
Ending balance at Jun. 30, 2023	501,341	16,581	301,424	290,548	(24,508)	(82,704)
Beginning balance at Dec. 31, 2023	524,378	16,581	302,157	294,784	(24,245)	(64,899)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,088			19,088
Other comprehensive (loss) income	6,764					6,764
Release/lapse of restriction on RSUs	(524)		(2,551)	(197)	2,224
Share-based compensation	1,225		1,225
Dividends paid on common stock	(7,645)			(7,645)
Ending balance at Jun. 30, 2024	543,286	16,581	300,831	306,030	(22,021)	(58,135)
Beginning balance at Mar. 31, 2024	528,040	16,581	300,845	294,066	(22,648)	(60,804)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	15,819			15,819
Other comprehensive (loss) income	2,669					2,669
Release/lapse of restriction on RSUs	(1)		(598)	(30)	627
Share-based compensation	584		584
Dividends paid on common stock	(3,825)			(3,825)
Ending balance at Jun. 30, 2024	$ 543,286	$ 16,581	$ 300,831	$ 306,030	$ (22,021)	$ (58,135)

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]
Release/lapse of restriction on RSUs (in shares)	22,997	9,798	79,162	61,146
Dividends paid on common stock (in dollars per share)	$ 0.2425	$ 0.2425	$ 0.4850	$ 0.4850

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating Activities:
Net income	$ 19,088	$ 8,991
Adjustments to reconcile net income to net cash provided by operating activities:
Credit loss expense	5,956	2,530
Depreciation, amortization, and accretion	5,752	6,207
Net change in premises and equipment due to writedown or sale	78	61
Share-based compensation	1,225	1,373
Net (gain) loss on call or sale of debt securities available for sale	(69)	13,172
Net change in foreclosed assets due to writedown or sale	287	(31)
Net gain on sale of loans held for sale	(600)	(837)
Origination of loans held for sale	(29,834)	(26,151)
Proceeds from sales of loans held for sale	28,629	24,779
Increase in cash surrender value of bank-owned life insurance	(1,328)	(1,218)
(Increase) decrease in deferred income taxes, net	(123)	3
Gain on branch sale	(11,056)	0
Change in:
Other assets	8,375	10,273
Other liabilities	8,440	1,736
Net cash provided by operating activities	34,820	40,888
Investing Activities:
Purchases of equity securities	(500)	0
Proceeds from sales of debt securities available for sale	52,323	218,667
Proceeds from maturities and calls of debt securities available for sale	56,542	75,781
Purchases of debt securities available for sale	(28,376)	(54,690)
Proceeds from maturities and calls of debt securities held to maturity	22,141	30,053
Net increase in loans held for investment	(116,809)	(177,153)
Purchases of premises and equipment	(1,149)	(1,307)
Proceeds from sale of foreclosed assets	50	134
Proceeds from sale of premises and equipment	7	880
Net cash paid in business acquisition	(28,621)	0
Net cash received in divestiture of branches	43,732	0
Net cash (used in) provided by investing activities	(660)	92,365
Financing Activities:
Deposits	(74,470)	(23,563)
Short-term borrowings	76,920	(29,819)
Payments on finance lease liability	(100)	(89)
Payments of Federal Home Loan Bank borrowings	(6,000)	(11,000)
Payments of other long-term debt	(2,500)	(2,500)
Taxes paid relating to the release/lapse of restriction on RSUs	(524)	(554)
Dividends paid	(7,645)	(7,605)
Net cash used in financing activities	(14,319)	(75,130)
Net change in cash and cash equivalents	19,841	58,123
Cash and cash equivalents at beginning of period	81,727	86,435
Cash and cash equivalents at end of period	101,568	144,558
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	64,584	39,016
Cash paid during the period for income taxes, net of refunds	2,317	1,115
Supplemental schedule of non-cash investing and financing activities:
Transfer of loans to foreclosed assets, net	2,461	0
Non-cash assets acquired:
Investment securities	52,493	0
Total loans held for investment, net	207,095	0
Premises and equipment	11,091	0
Assets held for sale	2,379	0
Goodwill	8,641	0
Core deposit intangible	7,100	0
Other assets	4,987	0
Total non-cash assets acquired	293,786	0
Liabilities assumed:
Deposits	224,248	0
Short-term borrowings	37,500	0
Other liabilities	3,417	0
Total liabilities assumed	265,165	0
Non-cash assets divested:
Total loans held for investment, net	161,359	0
Premises and equipment	3,511	0
Goodwill	1,730	0
Other assets	375	0
Total non-cash assets divested	166,975	0
Liabilities divested:
Deposits	133,296	0
Other liabilities	231	0
Total liabilities divested	$ 133,527	$ 0

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Nature of Business and Significant Accounting Policies

6 Months Ended

Jun. 30, 2024

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

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 January 31, 2024, the Company completed the acquisition of DNVB, a bank holding company whose wholly-owned banking subsidiary was BOD. Immediately following completion of the acquisition, BOD was merged with and into the Bank. As consideration for the merger, the Company paid cash in the amount of $32.6 million.

On June 7, 2024, MidWestOne Bank completed the sale of its Florida banking operations for a 7.5% deposit premium, which consisted of one MidWestOne Bank branch in each of Naples and Ft. Myers, Florida.

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, 2023, filed with the SEC on March 8, 2024.

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 six months ended June 30, 2024 may not be indicative of results for the year ending December 31, 2024, 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, 2023, filed with the SEC on March 8, 2024.

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, southwestern Wisconsin, Denver, Colorado, and, until June 7, 2024, Naples and Ft. Myers, Florida. 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 June 30, 2024

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.

On November 27, 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. Enhanced disclosures about significant segment expenses are included within this ASU. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with an option to early adopt. The amendments should be applied retrospectively to all prior periods presented in the financial statements, with the segment expense categories and amounts disclosed in prior periods being based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the impact of ASU 2023-07.

On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures. Additional transparency about income tax information through improvements to income tax disclosures, primarily related to the rate reconciliation and income taxes paid information, will be required. The amendments are effective for annual periods beginning after December 15, 2024, with an option to early adopt. The amendments should be applied on a prospective basis, with retrospective application being permitted. The Company is currently evaluating the impact of ASU 2023-09.

Accounting Guidance Adopted in 2024

On March 29, 2023, the FASB issued ASU 2023-02, Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. Under this ASU, if certain conditions are met, a reporting entity may elect to account for its tax equity investments by using the proportional amortization method regardless of the program from which it receives income tax credits. The amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with an option to early adopt. The amendments must be applied on either a modified retrospective or a retrospective basis, with certain exceptions for low-income-housing tax credit structures that are not accounted for using the proportional amortization method. The adoption of ASU 2023-02 was applied on a modified retrospective basis and did not have a material impact on the Company's consolidated financial statements.

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Business Combinations and Divestitures

6 Months Ended

Jun. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Business Combinations and Divestitures

Business Combinations and Divestitures

Business Combinations:

On January 31, 2024, the Company acquired 100% of the equity of DNVB through a merger and acquired its wholly-owned banking subsidiary, Bank of Denver, for cash consideration of $32.6 million. The primary reason for the acquisition was to increase our presence in Denver, Colorado. Immediately following the completion of the acquisition, BOD was 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 January 31, 2024 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). Initial accounting for the assets acquired and liabilities assumed was incomplete at June 30, 2024. Thus, such amounts recognized in the financial statements have been determined to be provisional. The excess of the consideration paid over the fair value of the net assets acquired is recorded as goodwill. This goodwill is not deductible for tax purposes. The revenue and earnings amount specific to DNVB since the acquisition date that are included in the consolidated results for the three and six months ended June 30, 2024 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)	January 31, 2024
Merger consideration
Cash consideration	$	32,600
Identifiable net assets acquired, at fair value
Assets acquired
Cash and due from banks	$	462
Interest earning deposits in banks	3,517
Debt securities	52,493
Loans held for investment	207,095
Premises and equipment	13,470
Core deposit intangible	7,100
Other assets	4,987
Total assets acquired	289,124
Liabilities assumed
Deposits	$	(224,248)
Short-term borrowings	(37,500)
Other liabilities	(3,417)
Total liabilities assumed	(265,165)
Identifiable net assets acquired, at fair value	23,959
Goodwill	$	8,641

For illustrative purposes only, the following table presents certain unaudited pro forma information for the three and six months ended June 30, 2024 and June 30, 2023. This unaudited, estimated pro forma information was calculated as if DNVB 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 DNVB 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.

	Unaudited
	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands, except per share amounts)	2024		2023		2024		2023
Total revenues	$	57,791	$	48,610	$	103,075	$	87,573
Net income (loss)	$	16,407	$	7,339	$	22,812	$	5,547
EPS - basic	$	1.04	$	0.47	$	1.45	$	0.35
EPS - diluted	$	1.04	$	0.47	$	1.45	$	0.35

The following table summarizes acquisition and divestiture-related expenses incurred during the three and six months ended June 30, 2024 and June 30, 2023, which are included in the respective income statement line items, for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2024		2023		2024		2023
Noninterest Expense
Compensation and employee benefits	$	73	$	—	$	314	$	70
Occupancy expense of premises, net	—		—		152		—
Equipment	28		—		177		—
Legal and professional	462		—		1,035		—
Data processing	251		—		312		65
Marketing	—		—		32		—
Communications	8		—		9		—
Other	32		—		137		1
Total acquisition and divestiture-related expenses	$	854	$	—	$	2,168	$	136

Divestitures:

On June 7, 2024, the Bank completed the sale of its Florida banking operations for a 7.5% deposit premium, which consisted of one bank branch in each of Naples and Ft. Myers, Florida. The sale of our Florida banking operations resulted in a gain on sale of $11.1 million that was recorded in other revenue.

The following is a summary of the assets and liabilities related to the branch sale:

	June 7, 2024
Assets
Cash and due from banks	$	353
Loans held for investment, net of unearned income	163,302
Allowance for credit losses	(1,943)
Total loans held for investment, net	161,359
Premises and equipment	3,511
Goodwill	1,730
Other assets	375
Total assets	$	167,328
Liabilities
Deposits	$	133,296
Other liabilities	231
Total liabilities	$	133,527

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Debt Securities

6 Months Ended

Jun. 30, 2024

Debt Securities [Abstract]

Debt Securities

Debt Securities

At June 30, 2024, there was $6.2 million of net unrealized after tax loss remaining in accumulated other comprehensive loss, related to the transfer of securities classified as available for sale to held to maturity on January 1, 2022.

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 June 30, 2024
(in thousands)	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Loss related to Debt Securities		Fair Value
Available for Sale
U.S. Treasury securities	$	250	$	—	$	—	$	—	$	250
State and political subdivisions	122,727		1		8,826		—		113,902
Mortgage-backed securities	5,232		4		140		—		5,096
Collateralized loan obligations	52,563		168		64		—		52,667
Collateralized mortgage obligations	195,077		23		22,472		—		172,628
Corporate debt securities	468,082		114		41,705		—		426,491
Total available for sale debt securities	$	843,931	$	310	$	73,207	$	—	$	771,034
Held to Maturity
State and political subdivisions	$	531,332	$	—	$	77,366	$	—	$	453,966
Mortgage-backed securities	71,993		—		12,879		—		59,114
Collateralized mortgage obligations	449,755		—		105,463		—		344,292
Total held to maturity debt securities	$	1,053,080	$	—	$	195,708	$	—	$	857,372
(1) Amortized cost for the held to maturity securities includes $0.2 million of unamortized gain in state and political subdivisions, $76 thousand of unamortized gains in mortgage-backed securities and $8.8 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, 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	$	139,482	$	2	$	9,345	$	—	$	130,139
Mortgage-backed securities	5,448		5		142		—		5,311
Collateralized loan obligations	50,541		135		239		—		50,437
Collateralized mortgage obligations	190,304		—		21,108		—		169,196
Corporate debt securities	487,361		57		47,367		—		440,051
Total available for sale debt securities	$	873,136	$	199	$	78,201	$	—	$	795,134
Held to Maturity
State and political subdivisions	$	532,422	$	—	$	65,932	$	—	$	466,490
Mortgage-backed securities	74,904		—		11,635		—		63,269
Collateralized mortgage obligations	467,864		—		102,360		—		365,504
Total held to maturity debt securities	$	1,075,190	$	—	$	179,927	$	—	$	895,263
(1) Amortized cost for the held to maturity securities includes $0.2 million of unamortized gain in state and political subdivisions, $58 thousand of unamortized gains in mortgage-backed securities and $9.7 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.

Investment securities with a fair value of $1.16 billion at each of June 30, 2024 and December 31, 2023 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 June 30, 2024 the accrued interest receivable on available for sale debt securities and held to maturity debt securities totaled $5.1 million and $3.6 million, respectively. At December 31, 2023 the accrued interest receivable on available for sale debt securities and held to maturity debt securities totaled $5.5 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 June 30, 2024, aggregated by investment category and length of time in a continuous loss position:

		As of June 30, 2024
	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	132	$	1,372	$	80	$	110,214	$	8,746	$	111,586	$	8,826
Mortgage-backed securities	21	100		1		4,677		139		4,777		140
Collateralized loan obligations	3	13,039		42		2,878		22		15,917		64
Collateralized mortgage obligations	21	47,816		679		119,410		21,793		167,226		22,472
Corporate debt securities	127	—		—		417,973		41,705		417,973		41,705
Total	304	$	62,327	$	802	$	655,152	$	72,405	$	717,479	$	73,207

As of June 30, 2024, 132 state and political subdivisions securities with total unrealized losses of $8.8 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 June 30, 2024, 21 mortgage-backed securities, and 21 collateralized mortgage obligations with unrealized losses totaling $22.6 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 June 30, 2024, 3 collateralized loan obligations with unrealized losses of $0.1 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 June 30, 2024, 127 corporate debt securities with total unrealized losses of $41.7 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, 2023, aggregated by investment category and length of time in a continuous loss position:

		As of December 31, 2023
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)
State and political subdivisions	149	$	8,417	$	492	$	114,713	$	8,853	$	123,130	$	9,345
Mortgage-backed securities	19	—		—		4,906		142		4,906		142
Collateralized loan obligations	2	17,696		239		—		—		17,696		239
Collateralized mortgage obligations	20	6,278		90		127,792		21,018		134,070		21,108
Corporate debt securities	133	2,377		80		429,222		47,287		431,599		47,367
Total	323	$	34,768	$	901	$	676,633	$	77,300	$	711,401	$	78,201

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 June 30, 2024. 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 six months ended June 30, 2024 and 2023, were as follows:

	Three Months Ended				Six Months Ended
(in thousands)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Proceeds from sales of debt securities available for sale	$	—	$	—	$	52,323	$	218,667
Gross realized losses from sales of debt securities available for sale(1)	—		—		—		(13,170)
Net realized loss from sales of debt securities available for sale(1)	$	—	$	—	$	—	$	(13,170)
(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 $33 thousand and $69 thousand for the three and six months ended June 30, 2024, respectively, with $2 thousand net realized loss from the call of debt securities recorded during the three and six months ended June 30, 2023.

The contractual maturity distribution of investment debt securities at June 30, 2024 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	$	79,950	$	78,771	$	12,280	$	11,902
Due after one year through five years	355,490		327,084		148,692		134,904
Due after five years through ten years	131,097		113,941		258,869		216,714
Due after ten years	24,522		20,847		111,491		90,446
	$	591,059	$	540,643	$	531,332	$	453,966
Mortgage-backed securities	5,232		5,096		71,993		59,114
Collateralized loan obligations	52,563		52,667		—		—
Collateralized mortgage obligations	195,077		172,628		449,755		344,292
Total	$	843,931	$	771,034	$	1,053,080	$	857,372

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Loans Receivable and the Allowance for Credit Losses

6 Months Ended

Jun. 30, 2024

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)	June 30, 2024		December 31, 2023
Agricultural	$	107,983	$	118,414
Commercial and industrial	1,120,983		1,075,003
Commercial real estate:
Construction & development	351,646		323,195
Farmland	183,641		184,955
Multifamily	430,054		383,178
Commercial real estate-other	1,348,515		1,333,982
Total commercial real estate	2,313,856		2,225,310
Residential real estate:
One- to four- family first liens	492,541		459,798
One- to four- family junior liens	176,105		180,639
Total residential real estate	668,646		640,437
Consumer	75,764		67,783
Loans held for investment, net of unearned income	4,287,232		4,126,947
Allowance for credit losses	(53,900)		(51,500)
Total loans held for investment, net	$	4,233,332	$	4,075,447

Loans with unpaid principal in the amount of $1.25 billion and $1.13 billion at June 30, 2024 and December 31, 2023, 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
June 30, 2024
Agricultural	$	107,502	$	—	$	60	$	421	$	107,983	$	—
Commercial and industrial	1,104,010		493		—		16,480		1,120,983		—
Commercial real estate:
Construction and development	351,202		213		231		—		351,646		—
Farmland	180,388		1,851		—		1,402		183,641		—
Multifamily	429,783		271		—		—		430,054		—
Commercial real estate-other	1,345,528		436		97		2,454		1,348,515		—
Total commercial real estate	2,306,901		2,771		328		3,856		2,313,856		—
Residential real estate:
One- to four- family first liens	485,926		3,506		1,927		1,182		492,541		338
One- to four- family junior liens	175,090		298		367		350		176,105		6
Total residential real estate	661,016		3,804		2,294		1,532		668,646		344
Consumer	75,371		189		99		105		75,764		89
Total	$	4,254,800	$	7,257	$	2,781	$	22,394	$	4,287,232	$	433

			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, 2023
Agricultural	$	117,852	$	338	$	—	$	224	$	118,414	$	—
Commercial and industrial	1,058,301		440		401		15,861		1,075,003		—
Commercial real estate:
Construction and development	323,165		30		—		—		323,195		—
Farmland	182,759		677		352		1,167		184,955		—
Multifamily	383,178		—		—		—		383,178		—
Commercial real estate-other	1,327,727		2,129		1,290		2,836		1,333,982		—
Total commercial real estate	2,216,829		2,836		1,642		4,003		2,225,310		—
Residential real estate:
One- to four- family first liens	453,212		3,572		1,741		1,273		459,798		468
One- to four- family junior liens	179,339		356		690		254		180,639		—
Total residential real estate	632,551		3,928		2,431		1,527		640,437		468
Consumer	67,622		118		28		15		67,783		—
Total	$	4,093,155	$	7,660	$	4,502	$	21,630	$	4,126,947	$	468

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)	June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023
Agricultural	$	421	$	235	$	219	$	12	$	—	$	—
Commercial and industrial	16,645		17,770		12,116		12,549		—		—
Commercial real estate:
Construction and development	—		—		—		—		—		—
Farmland	1,530		1,654		1,390		1,490		—		—
Multifamily	—		—		—		—		—		—
Commercial real estate-other	2,717		3,441		2,454		853		—		—
Total commercial real estate	4,247		5,095		3,844		2,343		—		—
Residential real estate:
One- to four- family first liens	2,535		1,888		1,290		455		338		468
One- to four- family junior liens	796		876		121		—		6		—
Total residential real estate	3,331		2,764		1,411		455		344		468
Consumer	51		27		—		—		89		—
Total	$	24,695	$	25,891	$	17,590	$	15,359	$	433	$	468

The interest income recognized on loans that were on nonaccrual for the three months ended June 30, 2024 and June 30, 2023 was $123 thousand and $38 thousand, respectively. The interest income recognized on loans that were on nonaccrual for the six months ended June 30, 2024 and June 30, 2023 was $252 thousand and $94 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 tables set 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 June 30, 2024. As of June 30, 2024, there were no 'loss' rated credits.

	Term Loans by Origination Year												Revolving Loans
June 30, 2024 (in thousands)	2024		2023		2022		2021		2020		Prior				Total
Agricultural
Pass	$	9,931	$	8,394	$	10,678	$	6,426	$	2,177	$	1,599	$	64,512	$	103,717
Special mention / watch	147		215		443		245		100		478		1,365		2,993
Substandard	30		—		222		156		212		213		440		1,273
Doubtful	—		—		—		—		—		—		—		—
Total	$	10,108	$	8,609	$	11,343	$	6,827	$	2,489	$	2,290	$	66,317	$	107,983
Commercial and industrial
Pass	$	85,109	$	161,638	$	194,275	$	182,208	$	107,822	$	125,602	$	179,462	$	1,036,116
Special mention / watch	93		7,736		17,163		897		3,055		5,626		10,159		44,729
Substandard	468		654		732		2,952		76		33,875		1,381		40,138
Doubtful	—		—		—		—		—		—		—		—
Total	$	85,670	$	170,028	$	212,170	$	186,057	$	110,953	$	165,103	$	191,002	$	1,120,983
CRE - Construction and development
Pass	$	51,903	$	148,008	$	112,679	$	27,381	$	3,077	$	1,242	$	5,723	$	350,013
Special mention / watch	623		—		—		—		—		—		467		1,090
Substandard	—		312		231		—		—		—		—		543
Doubtful	—		—		—		—		—		—		—		—
Total	$	52,526	$	148,320	$	112,910	$	27,381	$	3,077	$	1,242	$	6,190	$	351,646
CRE - Farmland
Pass	$	13,716	$	25,478	$	41,723	$	43,094	$	16,797	$	16,846	$	2,397	$	160,051
Special mention / watch	820		—		5,858		3,979		5,675		644		865		17,841
Substandard	566		384		382		499		1,183		2,735		—		5,749
Doubtful	—		—		—		—		—		—		—		—
Total	$	15,102	$	25,862	$	47,963	$	47,572	$	23,655	$	20,225	$	3,262	$	183,641
CRE - Multifamily
Pass	$	16,937	$	42,485	$	121,613	$	106,455	$	71,270	$	21,265	$	1,722	$	381,747
Special mention / watch	11,109		—		452		271		16,650		12,333		—		40,815
Substandard	—		—		—		7,492		—		—		—		7,492
Doubtful	—		—		—		—		—		—		—		—
Total	$	28,046	$	42,485	$	122,065	$	114,218	$	87,920	$	33,598	$	1,722	$	430,054
CRE - Other
Pass	$	40,075	$	159,183	$	312,547	$	243,668	$	223,127	$	179,759	$	68,353	$	1,226,712
Special mention / watch	526		8,013		6,468		3,611		4,311		6,261		5,698		34,888
Substandard	1,311		243		26,141		17,959		16,761		24,500		—		86,915
Doubtful	—		—		—		—		—		—		—		—
Total	$	41,912	$	167,439	$	345,156	$	265,238	$	244,199	$	210,520	$	74,051	$	1,348,515
RRE - One- to four- family first liens
Pass / Performing	$	38,297	$	58,650	$	130,613	$	92,734	$	51,605	$	96,948	$	13,562	$	482,409
Special mention / watch	56		723		706		64		593		1,755		—		3,897
Substandard / Nonperforming	—		1,260		897		550		104		3,424		—		6,235
Doubtful	—		—		—		—		—		—		—		—
Total	$	38,353	$	60,633	$	132,216	$	93,348	$	52,302	$	102,127	$	13,562	$	492,541
RRE - One- to four- family junior liens
Performing	$	9,492	$	18,965	$	25,328	$	16,535	$	6,921	$	8,880	$	89,182	$	175,303
Nonperforming	—		—		395		69		22		316		—		802
Total	$	9,492	$	18,965	$	25,723	$	16,604	$	6,943	$	9,196	$	89,182	$	176,105
Consumer
Performing	$	11,129	$	26,788	$	13,575	$	7,707	$	3,137	$	7,526	$	5,762	$	75,624
Nonperforming	—		46		77		—		17		—		—		140
Total	$	11,129	$	26,834	$	13,652	$	7,707	$	3,154	$	7,526	$	5,762	$	75,764

	Term Loans by Origination Year												Revolving Loans
June 30, 2024 (in thousands)	2024		2023		2022		2021		2020		Prior				Total
Total by Credit Quality Indicator Category
Pass	$	255,968	$	603,836	$	924,128	$	701,966	$	475,875	$	443,261	$	335,731	$	3,740,765
Special mention / watch	13,374		16,687		31,090		9,067		30,384		27,097		18,554		146,253
Substandard	2,375		2,853		28,605		29,608		18,336		64,747		1,821		148,345
Doubtful	—		—		—		—		—		—		—		—
Performing	20,621		45,753		38,903		24,242		10,058		16,406		94,944		250,927
Nonperforming	—		46		472		69		39		316		—		942
Total	$	292,338	$	669,175	$	1,023,198	$	764,952	$	534,692	$	551,827	$	451,050	$	4,287,232
	Term Loans by Origination Year												Revolving Loans
June 30, 2024 (in thousands)	2024		2023		2022		2021		2020		Prior				Total
Year-to-date Current Period Gross Write-offs
Agricultural	$	—	$	—	$	—	$	4	$	—	$	—	$	—	$	4
Commercial and industrial	—		42		330		145		29		222		—		768
CRE - Construction and development	—		—		—		—		—		—		—		—
CRE - Farmland	—		—		—		—		—		—		—		—
CRE - Multifamily	—		—		—		—		—		—		—		—
CRE - Other	—		—		—		—		—		35		—		35
RRE - One-to-four-family first liens	—		—		53		22		—		—		—		75
RRE - One-to-four-family junior liens	—		—		—		—		—		—		—		—
Consumer	—		338		196		3		1		12		—		550
Total Current Period Gross Write-offs	$	—	$	380	$	579	$	174	$	30	$	269	$	—	$	1,432

The following tables set 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, 2023. As of December 31, 2023, there were no 'loss' rated credits.

	Term Loans by Origination Year												Revolving Loans
December 31, 2023 (in thousands)	2023		2022		2021		2020		2019		Prior				Total
Agricultural
Pass	$	11,859	$	12,149	$	8,352	$	2,752	$	689	$	1,139	$	71,680	$	108,620
Special mention / watch	266		550		670		91		5		522		3,705		5,809
Substandard	709		193		302		208		—		224		2,349		3,985
Doubtful	—		—		—		—		—		—		—		—
Total	$	12,834	$	12,892	$	9,324	$	3,051	$	694	$	1,885	$	77,734	$	118,414
Commercial and industrial
Pass	$	176,021	$	224,924	$	193,011	$	117,326	$	25,555	$	116,661	$	147,690	$	1,001,188
Special mention / watch	2,541		416		3,209		3,385		193		272		14,692		24,708
Substandard	897		2,921		2,010		561		8,507		29,432		4,779		49,107
Doubtful	—		—		—		—		—		—		—		—
Total	$	179,459	$	228,261	$	198,230	$	121,272	$	34,255	$	146,365	$	167,161	$	1,075,003
CRE - Construction and development
Pass	$	99,803	$	163,126	$	43,189	$	3,393	$	821	$	700	$	9,552	$	320,584
Special mention / watch	1,097		—		464		—		—		—		467		2,028
Substandard	343		240		—		—		—		—		—		583
Doubtful	—		—		—		—		—		—		—		—
Total	$	101,243	$	163,366	$	43,653	$	3,393	$	821	$	700	$	10,019	$	323,195
CRE - Farmland
Pass	$	25,666	$	44,907	$	47,068	$	18,863	$	6,587	$	14,845	$	1,642	$	159,578
Special mention / watch	1,229		6,898		2,409		5,982		—		965		276		17,759
Substandard	1,830		210		1,542		1,052		926		2,029		29		7,618
Doubtful	—		—		—		—		—		—		—		—
Total	$	28,725	$	52,015	$	51,019	$	25,897	$	7,513	$	17,839	$	1,947	$	184,955
CRE - Multifamily
Pass	$	32,077	$	96,969	$	111,032	$	77,532	$	8,701	$	6,508	$	4,208	$	337,027
Special mention / watch	5,318		1,237		277		18,984		7,850		4,586		—		38,252
Substandard	—		—		7,572		327		—		—		—		7,899
Doubtful	—		—		—		—		—		—		—		—
Total	$	37,395	$	98,206	$	118,881	$	96,843	$	16,551	$	11,094	$	4,208	$	383,178
CRE - Other
Pass	$	199,698	$	295,066	$	256,718	$	250,676	$	77,509	$	90,170	$	51,827	$	1,221,664
Special mention / watch	364		1,306		3,300		4,823		4,282		2,395		3,856		20,326
Substandard	325		26,555		19,253		19,103		8,242		17,876		638		91,992
Doubtful	—		—		—		—		—		—		—		—
Total	$	200,387	$	322,927	$	279,271	$	274,602	$	90,033	$	110,441	$	56,321	$	1,333,982
RRE - One- to four- family first liens
Pass / Performing	$	62,644	$	125,777	$	92,767	$	54,028	$	19,674	$	81,660	$	13,283	$	449,833
Special mention / watch	629		716		36		620		1,827		319		—		4,147
Substandard / Nonperforming	1,156		191		738		165		164		3,404		—		5,818
Doubtful	—		—		—		—		—		—		—		—
Total	$	64,429	$	126,684	$	93,541	$	54,813	$	21,665	$	85,383	$	13,283	$	459,798
RRE - One- to four- family junior liens
Performing	$	23,551	$	29,919	$	18,733	$	7,292	$	2,590	$	7,867	$	89,810	$	179,762
Nonperforming	—		192		—		25		23		637		—		877
Total	$	23,551	$	30,111	$	18,733	$	7,317	$	2,613	$	8,504	$	89,810	$	180,639
Consumer
Performing	$	26,028	$	14,319	$	10,042	$	4,421	$	1,451	$	7,350	$	4,145	$	67,756
Nonperforming	—		22		—		—		3		2		—		27
Total	$	26,028	$	14,341	$	10,042	$	4,421	$	1,454	$	7,352	$	4,145	$	67,783

	Term Loans by Origination Year												Revolving Loans
December 31, 2023 (in thousands)	2023		2022		2021		2020		2019		Prior				Total
Total by Credit Quality Indicator Category
Pass	$	607,768	$	962,918	$	752,137	$	524,570	$	139,536	$	311,683	$	299,882	$	3,598,494
Special mention / watch	11,444		11,123		10,365		33,885		14,157		9,059		22,996		113,029
Substandard	5,260		30,310		31,417		21,416		17,839		52,965		7,795		167,002
Doubtful	—		—		—		—		—		—		—		—
Performing	49,579		44,238		28,775		11,713		4,041		15,217		93,955		247,518
Nonperforming	—		214		—		25		26		639		—		904
Total	$	674,051	$	1,048,803	$	822,694	$	591,609	$	175,599	$	389,563	$	424,628	$	4,126,947
	Term Loans by Origination Year												Revolving Loans
December 31, 2023 (in thousands)	2023		2022		2021		2020		2019		Prior				Total
Year-to-date Current Period Gross Write-offs
Agricultural	$	—	$	8	$	1	$	17	$	2	$	—	$	—	$	28
Commercial and industrial	239		343		223		133		464		45		—		1,447
CRE - Construction and development	—		—		—		—		—		—		—		—
CRE - Farmland	—		—		—		—		—		—		—		—
CRE - Multifamily	—		—		—		—		—		—		—		—
CRE - Other	—		—		—		—		—		2,337		—		2,337
RRE - One-to-four-family first liens	—		—		—		—		—		36		—		36
RRE - One-to-four-family junior liens	—		19		—		—		—		—		—		19
Consumer	—		621		30		12		12		10		—		685
Total Current Period Gross Write-offs	$	239	$	991	$	254	$	162	$	478	$	2,428	$	—	$	4,552

Allowance for Credit Losses

The following are the economic factors utilized by the Company for its loan credit loss estimation process at June 30, 2024, and the forecast for each factor at that date: (1) Midwest unemployment – increases over the next four forecasted quarters; (2) National unemployment - increases over the next three forecasted quarters, with a decrease in the fourth forecasted quarter; (3) year-to-year change in national retail sales - increases over the next four forecasted quarters; (4) year-to-year change in CRE Index - decreases over the next four forecasted quarters; and (5) year-to-year change in U.S. GDP - 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 June 30, 2024 and December 31, 2023 reflects $3.1 million of day 1 credit loss expense related to acquired DNVB loans, as well as additional reserve taken to support loan growth. Partially offsetting these identified increases was a $1.9 million reduction to the ACL for allowance allocated to the loans sold with our Florida banking operations. Net loan charge-offs were $0.5 million for the three months ended June 30, 2024 as compared to net loan charge-offs of $0.9 million for the three months ended June 30, 2023. Net loan charge-offs were $0.7 million for the six months ended June 30, 2024 as compared to net loan charge-offs of $1.2 million for the six months ended June 30, 2023.

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 $20.6 million at June 30, 2024.

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

	For the Three Months Ended June 30, 2024 and 2023
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
For the Three Months Ended June 30, 2024
Beginning balance	$	648	$	21,882	$	26,772	$	5,014	$	1,584	$	55,900
Allocated to banking office sale	—		(51)		(1,795)		(94)		(3)		(1,943)
Charge-offs	—		(469)		—		(56)		(260)		(785)
Recoveries	—		223		6		4		28		261
Credit loss expense (benefit)(1)	(246)		1,423		(659)		(209)		158		467
Ending balance	$	402	$	23,008	$	24,324	$	4,659	$	1,507	$	53,900
For the Three Months Ended June 30, 2023
Beginning balance	$	513	$	22,345	$	21,833	$	4,545	$	564	$	49,800
Charge-offs	—		(189)		(812)		(33)		(125)		(1,159)
Recoveries	1		195		6		16		44		262
Credit loss expense (benefit) (1)	103		570		884		(135)		75		1,497
Ending balance	$	617	$	22,921	$	21,911	$	4,393	$	558	$	50,400
(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 of $0.8 million and $0.1 million related to off-balance sheet credit exposures for the three months ended June 30, 2024 and June 30, 2023, respectively.

	For the Six Months Ended June 30, 2024 and 2023
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
For the Six Months Ended June 30, 2024
Beginning balance	$	613	$	21,743	$	23,759	$	4,762	$	623	$	51,500
Allocated in banking office sale	—		(51)		(1,795)		(94)		(3)		(1,943)
Charge-offs	(4)		(768)		(35)		(75)		(550)		(1,432)
Recoveries	355		269		14		13		68		719
Credit loss expense (benefit)(1)	(562)		1,815		2,381		53		1,369		5,056
Ending balance	$	402	$	23,008	$	24,324	$	4,659	$	1,507	$	53,900
For the Six Months Ended June 30, 2023
Beginning balance	$	923	$	22,855	$	20,123	$	4,678	$	621	$	49,200
Charge-offs	(1)		(509)		(830)		(33)		(273)		(1,646)
Recoveries	27		270		11		20		88		416
Credit loss (benefit) expense(1)	(332)		305		2,607		(272)		122		2,430
Ending balance	$	617	$	22,921	$	21,911	$	4,393	$	558	$	50,400
(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 of $0.9 million and $0.1 million related to off-balance sheet credit exposures for the six months ended June 30, 2024 and June 30, 2023, respectively.

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

	As of June 30, 2024
(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	$	219	$	16,024	$	6,320	$	1,564	$	—	$	24,127
Collectively evaluated for impairment	107,764		1,104,959		2,307,536		667,082		75,764		4,263,105
Total	$	107,983	$	1,120,983	$	2,313,856	$	668,646	$	75,764	$	4,287,232
Allowance for credit losses:
Individually evaluated for impairment	$	—	$	1,671	$	44	$	104	$	—	$	1,819
Collectively evaluated for impairment	402		21,337		24,280		4,555		1,507		52,081
Total	$	402	$	23,008	$	24,324	$	4,659	$	1,507	$	53,900

	As of December 31, 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	$	11	$	17,231	$	10,932	$	983	$	—	$	29,157
Collectively evaluated for impairment	118,403		1,057,772		2,214,378		639,454		67,783		4,097,790
Total	$	118,414	$	1,075,003	$	2,225,310	$	640,437	$	67,783	$	4,126,947
Allowance for credit losses:
Individually evaluated for impairment	$	—	$	2,616	$	705	$	16	$	—	$	3,337
Collectively evaluated for impairment	613		19,127		23,054		4,746		623		48,163
Total	$	613	$	21,743	$	23,759	$	4,762	$	623	$	51,500

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 June 30, 2024
(in thousands)	Primary Type of Collateral
	Real Estate		Equipment		Other		Total		ACL Allocation
Agricultural	$	219	$	—	$	—	$	219	$	—
Commercial and industrial	16,024		—		—		16,024		1,671
Commercial real estate:
Farmland	3,686		—		—		3,686		—
Commercial real estate-other	2,468		—		166		2,634		44
Residential real estate:
One- to four- family first liens	1,290		—		—		1,290		—
One- to four- family junior liens	274		—		—		274		104
Total	$	23,961	$	—	$	166	$	24,127	$	1,819

	As of December 31, 2023
(in thousands)	Primary Type of Collateral
	Real Estate		Equipment		Other		Total		ACL Allocation
Agricultural	$	11	$	—	$	—	$	11	$	—
Commercial and industrial	15,991		—		1,240		17,231		2,616
Commercial real estate:
Farmland	5,403		—		—		5,403		—
Commercial real estate-other	5,350		—		179		5,529		705
Residential real estate:
One- to four- family first liens	481		—		—		481		—
One- to four- family junior liens	—		—		502		502		16
Total	$	27,236	$	—	$	1,921	$	29,157	$	3,337

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 tables present the amortized cost basis of loans as of June 30, 2024 and June 30, 2023 that were modified during the three and six months ended June 30, 2024 and June 30, 2023 and experiencing financial difficulty at the time of the modification by class and by type of modification:

	For the Three Months and Six Months Ended June 30, 2024
									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 June 30, 2024
Commercial and industrial	$	—	$	—	$	78	$	—	$	—	$	—	$	—	$	—	0.01	%
CRE - Construction and development	—		—		231		—		—		—		—		—		0.07	%
CRE - Farmland	—		—		381		—		—		—		—		—		0.21	%
CRE - Other	—		—		4,910		—		—		—		—		—		0.36	%
RRE - One- to four- family first liens	—		—		393		—		—		—		—		—		0.08	%
Total	$	—	$	—	$	5,993	$	—	$	—	$	—	$	—	$	—
Six Months Ended June 30, 2024
Commercial and industrial	$	—	$	—	$	453	$	—	$	—	$	—	$	—	$	—	0.04	%
CRE - Construction and development	—		—		231		—		—		—		—		—		0.07	%
CRE - Farmland	—		—		381		—		—		—		—		—		0.21	%
CRE - Other	—		—		5,107		—		—		—		—		—		0.38	%
RRE - One- to four- family first liens	—		252		393		—		—		—		—		—		0.13	%
RRE - One- to four- family junior liens	—		—		136		—		—		—		—		—		0.08	%
Total	$	—	$	252	$	6,701	$	—	$	—	$	—	$	—	$	—

	For the Three Months and Six Months Ended June 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 June 30, 2023
Agricultural	$	—	$	15	$	—	$	—	$	—	$	—	$	—	$	—	0.01	%
Commercial and industrial	—		272		732		—		—		—		192		—		0.11	%
CRE - Farmland	—		—		1,843		—		—		—		—		—		1.01	%
CRE - Other	—		158		—		—		—		—		—		—		0.01	%
RRE - One- to four- family first liens	—		—		80		—		—		—		—		—		0.02	%
Total	$	—	$	445	$	2,655	$	—	$	—	$	—	$	192	$	—
Six Months Ended June 30, 2023
Agricultural	$	—	$	15	$	—	$	—	$	—	$	—	$	—	$	—	0.01	%
Commercial and industrial	—		272		778		—		112		305		192		—		0.15	%
CRE - Farmland	—		—		1,843		—		—		—		—		—		1.01	%
CRE - Other	—		158		—		—		—		—		—		—		0.01	%
RRE - One- to four- family first liens	—		—		80		—		—		—		—		—		0.02	%
Total	$	—	$	445	$	2,701	$	—	$	112	$	305	$	192	$	—

The Company has $5 thousand of additional commitments to lend amounts to the borrowers included in the previous tables as of June 30, 2024 and had no commitments as of June 30, 2023. For the three and six months ended June 30, 2024, the Company had two modified loans totaling $0.6 million and 8 modified loans totaling $0.9 million, respectively, to borrowers experiencing financial difficulty that redefaulted within 12 months subsequent to the modification. For the three and six months ended June 30, 2023, the Company had four modified loans totaling $0.9 million to borrowers experiencing financial difficulty that redefaulted within 12 months subsequent to the modification.

The following tables present the performance, as of June 30, 2024 and June 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 June 30, 2024
(in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
Commercial and industrial	$	522	$	—	$	—	$	—	$	522
CRE - Construction and development	312		—		231		—		543
CRE - Farmland	381		—		—		352		733
CRE - Other	10,662		—		—		—		10,662
RRE - One- to four- family first liens	645		—		—		—		645
RRE - One- to four- family junior liens	149		—		—		—		149
Total	$	12,671	$	—	$	231	$	352	$	13,254
	As of June 30, 2023
(in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
Agricultural	$	—	$	15	$	—	$	—	$	15
Commercial and industrial	968		—		690		—		1,658
CRE - Farmland	1,843		—		—		—		1,843
CRE - Other	158		—		—		—		158
RRE - One- to four- family first liens	80		—		—		—		80
Total	$	3,049	$	15	$	690	$	—	$	3,754

The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three and six months ended June 30, 2024 and June 30, 2023:

(dollars in thousands)	Principal Forgiveness		Weighted Average Interest Rate Reduction		Weighted Average Term Extension (Months)
Three Months Ended June 30, 2024
Commercial and industrial	$	—	—	%	26.0
CRE - Construction and development	—		—		0.8
CRE - Farmland	—		—		5.4
CRE - Other	—		—		7.1
RRE - One- to four- family first liens	—		—		210.1
Total	$	—	—	%	20.4
Six Months Ended June 30, 2024
Commercial and industrial	$	—	—	%	8.1
CRE - Construction and development	—		—		0.8
CRE - Farmland	—		—		5.4
CRE - Other	—		—		7.1
RRE - One- to four- family first liens	—		—		210.1
RRE - One- to four- family junior liens	—		—		122.0
Total	$	—	—	%	21.1

(dollars in thousands)	Principal Forgiveness		Weighted Average Interest Rate Reduction		Weighted Average Term Extension (Months)
Three Months Ended June 30, 2023
Commercial and industrial	$	—	—	%	6.5
CRE - Farmland	—		—		0.9
RRE - One- to four- family first liens	—		—		3.9
Total	$	—	—	%	2.9
Six Months Ended June 30, 2023
Commercial and industrial	$	63	1.25	%	8.3
CRE - Farmland	—		—		0.9
CRE - Other	18		7.00		2.5
RRE - One- to four- family first liens	—		—		3.9
Total	$	81	1.25	%	4.1

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Derivatives, Hedging Activities and Balance Sheet Offsetting

6 Months Ended

Jun. 30, 2024

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 June 30, 2024						As of December 31, 2023
	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	$	50,111	$	2,577	$	416	$	41,101	$	2,071	$	902
Interest rate swaps - securities	150,000		174		20		150,000		—		821
Cash flow hedges
Interest rate swaps	200,000		2,651		—		200,000		940		264
Total	$	400,111	$	5,402	$	436	$	391,101	$	3,011	$	1,987
Not designated as hedging instruments:
Interest rate swaps	$	614,745	$	23,221	$	23,232	$	432,648	$	22,028	$	22,038
RPAs - protection sold	53,133		6		—		18,778		4		—
RPAs - protection purchased	30,633		—		3		31,145		—		9
Interest rate lock commitments	3,537		49		—		1,461		50		—
Interest rate forward loan sales contracts	3,551		13		—		2,075		—		23
Total	$	705,599	$	23,289	$	23,235	$	486,107	$	22,082	$	22,070

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, including AFS debt securities and loans. 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 has previously 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, including brokered deposits. 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 12 months following June 30, 2024, the Company estimates that an additional $2.2 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 six months ended June 30, 2024 and 2023:

	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 June 30,					Three Months Ended June 30,
(in thousands)	2024		2023			2024		2023
Interest rate swaps	$	778	$	3,321	Interest Expense	$	787	$	238
	Six Months Ended June 30,					Six Months Ended June 30,
(in thousands)	2024		2023			2024		2023
Interest rate swaps	$	3,550	$	3,459	Interest Expense	$	1,575	$	238

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 June 30,								For the Six Months Ended June 30,
	2024				2023				2024				2023
(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	$	483	$	—	$	190	$	—	$	891	$	—	$	349	$	—
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	(233)		—		(27)		—		(997)		—		535		—
Derivative designated as hedging instruments	507		—		658		—		1,530		—		255		—
Interest contracts - securities:
Hedged items	(103)		—		—		—		(986)		—		—		—
Derivative designated as hedging instruments	284		—		—		—		1,343		—		—		—

As of June 30, 2024, 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	$	47,070	$	(3,292)
Securities	$	149,582	$	(418)

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 June 30,				For the Six Months Ended June 30,
(in thousands)		2024		2023		2024		2023
Interest rate swaps	Other income	$	—	$	—	$	1	$	—
RPAs	Other income	2		—		7		69
Interest rate lock commitments	Loan revenue	(28)		(32)		(1)		62
Interest rate forward loan sales contracts	Loan revenue	21		49		36		19
Total		$	(5)	$	17	$	43	$	150

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 June 30, 2024 and December 31, 2023, 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 June 30, 2024
Asset Derivatives	$	28,691	$	—	$	28,691	$	—	$	17,444	$	11,247
Liability Derivatives	23,671		—		23,671		—		1,230		22,441
As of December 31, 2023
Asset Derivatives	$	25,093	$	—	$	25,093	$	—	$	15,549	$	9,544
Liability Derivatives	24,057		—		24,057		—		2,420		21,637

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 June 30, 2024, 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 $5.6 million.

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Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

The following table presents the changes in the carrying amount of goodwill for the period indicated:

(in thousands)	As of June 30, 2024		December 31, 2023
Goodwill, beginning of period	$	62,477	$	62,477
Established in acquisition	8,641		—
Allocated to divestiture	(1,730)		—
Total goodwill, end of period	$	69,388	$	62,477

As indicated in Note 2. Business Combinations, the Company acquired a core deposit intangible in connection with its acquisition of DNVB on January 31, 2024 with an estimated fair value of $7.1 million, which will be amortized over its estimated useful life of 10 years.

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 June 30, 2024						As of December 31, 2023
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangible	$	65,345	$	(44,562)	$	20,783	$	58,245	$	(41,499)	$	16,746
Customer relationship intangible	5,265		(5,160)		105		5,265		(5,008)		257
Other	2,700		(2,689)		11		2,700		(2,674)		26
	$	73,310	$	(52,411)	$	20,899	$	66,210	$	(49,181)	$	17,029
Indefinite-lived trade name intangible					7,040						7,040
Total other intangible assets, net					$	27,939					$	24,069

The following table provides the estimated future amortization expense for the remaining six months of the year ending December 31, 2024 and the succeeding annual periods:

(in thousands)	Core Deposit Intangible		Customer Relationship Intangible		Other		Total
2024	$	2,826	$	87	$	9	$	2,922
2025	4,924		18		2		4,944
2026	3,840		—		—		3,840
2027	2,757		—		—		2,757
2028	2,110		—		—		2,110
Thereafter	4,326		—		—		4,326
Total	$	20,783	$	105	$	11	$	20,899

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Other Assets

6 Months Ended

Jun. 30, 2024

Other Assets [Abstract]

Other Assets

Other Assets

The components of the Company's other assets as of June 30, 2024 and December 31, 2023 were as follows:

(in thousands)	June 30, 2024		December 31, 2023
Bank-owned life insurance	$	99,367	$	98,039
Interest receivable	30,202		29,768
FHLB stock	5,096		5,806
Mortgage servicing rights	13,094		13,333
Operating lease right-of-use assets, net	1,784		2,337
Federal and state income taxes, current	—		1,556
Federal and state income taxes, deferred	28,577		31,218
Derivative assets	28,691		25,093
Other receivables/assets	17,810		15,630
	$	224,621	$	222,780

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Deposits

6 Months Ended

Jun. 30, 2024

Deposits [Abstract]

Deposits

Deposits

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

(in thousands)	June 30, 2024		December 31, 2023
Noninterest bearing deposits	$	882,472	$	897,053
Interest checking deposits	1,284,243		1,320,435
Money market deposits	1,043,376		1,105,493
Savings deposits	745,639		650,655
Time deposits of $250 and under	999,301		973,253
Time deposits over $250	457,388		448,784
Total deposits	$	5,412,419	$	5,395,673

The Company had $24.5 million and $15.2 million in reciprocal time deposits as of June 30, 2024 and December 31, 2023, respectively. Included in money market deposits at June 30, 2024 and December 31, 2023 were $114.7 million and $128.0 million, respectively, of interest-bearing reciprocal deposits. Included in noninterest bearing deposits at June 30, 2024 and December 31, 2023 were $52.0 million and $58.0 million, respectively, of noninterest-bearing reciprocal deposits. These reciprocal deposits are part of the IntraFi Network Deposits program, which is used by financial institutions to distribute deposits that exceed the FDIC insurance coverage limits to numerous institutions in order to provide insurance coverage for all participating deposits.

In addition, included above within the time deposits of “$250 thousand and under” was $196.0 million of brokered deposits as of June 30, 2024 and $221.0 million as of December 31, 2023.

As of June 30, 2024 and December 31, 2023, the Company had public entity deposits, which were collateralized by investment securities balances of $227.9 million and $183.4 million, respectively.

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Short-Term Borrowings

6 Months Ended

Jun. 30, 2024

Short-Term Debt [Abstract]

Short-Term Borrowings

Short-Term Borrowings

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

	June 30, 2024				December 31, 2023
(in thousands)	Weighted Average Rate		Balance		Weighted Average Rate		Balance
Securities sold under agreements to repurchase	0.67	%	$	5,684	0.72	%	$	5,064
Federal Home Loan Bank advances	5.52		4,000		5.64		10,200
Federal Reserve Bank borrowings	4.77		405,000		4.82		285,000
Total	4.72	%	$	414,684	4.78	%	$	300,264

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 $135.0 million from multiple correspondent banking relationships. There were no borrowings from such lines at either June 30, 2024 or December 31, 2023.

Federal Reserve Bank Borrowing - At June 30, 2024 and December 31, 2023, the Company had no Federal Reserve Discount Window borrowings, while its borrowing capacity was $413.5 million as of June 30, 2024 and $428.8 million as of December 31, 2023. At June 30, 2024 and December 31, 2023, the Company had $405.0 million and $285.0 million, respectively, of Bank Term Funding Program borrowings. The FRB announced that effective March 11, 2024, no additional loans would be made under the Bank Term Funding Program. As of June 30, 2024 and December 31, 2023, investment securities consisting primarily of corporate debt, state and political subdivisions, mortgage backed, and collateralized mortgage obligations were pledged to the Federal Reserve Bank of Chicago, with a market value of $771.3 million and $797.6 million, respectively.

Unsecured Line of Credit - 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 borrowing outstanding under this revolving credit facility as of both June 30, 2024 and December 31, 2023.

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Long-Term Debt

6 Months Ended

Jun. 30, 2024

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:

			June 30,		December 31,			June 30,		December 31,
			2024		2023			2024		2023
(in thousands)	Face Value		Book Value				Interest Rate(1)	Rate				Maturity Date	Callable Date
ATBancorp Statutory Trust I	$	7,732	$	6,992	$	6,970	1.68% Margin	7.28	%	7.33	%	06/15/2036	06/15/2011
ATBancorp Statutory Trust II	12,372		11,068		11,034		1.65% Margin	7.25	%	7.30	%	09/15/2037	06/15/2012
Barron Investment Capital Trust I	2,062		1,875		1,861		2.15% Margin	7.76	%	7.77	%	09/23/2036	09/23/2011
Central Bancshares Capital Trust II	7,217		6,983		6,964		3.50% Margin	9.10	%	9.15	%	03/15/2038	03/15/2013
MidWestOne Statutory Trust II	15,464		15,464		15,464		1.59% Margin	7.19	%	7.24	%	12/15/2037	12/15/2012
Total	$	44,847	$	42,382	$	42,293
(1) Interest rate is equal to the Three-month CME Term SOFR + 0.26% Spread + Applicable Margin

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 June 30, 2024, 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. At June 30, 2024 and December 31, 2023, the Company had outstanding subordinated debentures of $64.2 million and $64.1 million, respectively.

Other Long-Term Debt

Other long-term borrowings were as follows as of June 30, 2024 and December 31, 2023:

	June 30, 2024				December 31, 2023
(in thousands)	Weighted Average Rate		Balance		Weighted Average Rate		Balance
Finance lease payable	8.89	%	$	504	8.89	%	$	604
FHLB borrowings	2.23		250		3.11		6,262
Note payable to unaffiliated bank	6.88		7,500		6.89		10,000
Total	6.86	%	$	8,254	5.56	%	$	16,866

On June 7, 2022, pursuant to a credit agreement with a correspondent bank, the Company entered into a $35.0 million term note payable maturing on June 30, 2027. Principal and interest are payable quarterly, and began on September 30, 2022. Interest accrues at the monthly reset term SOFR plus 1.55%. The credit agreement includes customary covenants requiring the

Company to, among other things, maintain minimum levels of both regulatory capital and certain financial ratios; the Company certifies compliance with the covenants on a quarterly basis. On February 12, 2024, the credit agreement, including certain of its covenants, was amended.

As a member of the FHLBDM, the Bank may borrow funds from the FHLB, provided the Bank is able to pledge an adequate amount of qualified assets to secure the borrowings. In addition, the FHLB has established a credit capacity limit to the Bank that is equal to 45% of the Bank’s total assets. This credit capacity limit includes short-term and long-term borrowings, federal funds, letters of credit and other sources of credit exposure to the FHLB. 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 June 30, 2024, there was $250 thousand of FHLB borrowings due in 2024.

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Earnings per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Earnings per Share

Earnings per Share

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

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands, except per share amounts)	2024		2023		2024		2023
Basic Earnings Per Share:
Net income	$	15,819	$	7,594	$	19,088	$	8,991
Weighted average shares outstanding	15,763,414		15,680,386		15,743,056		15,665,103
Basic earnings per common share	$	1.00	$	0.48	$	1.21	$	0.57
Diluted Earnings Per Share:
Net income	$	15,819	$	7,594	$	19,088	$	8,991
Weighted average shares outstanding, including all dilutive potential shares	15,780,935		15,689,314		15,775,110		15,687,729
Diluted earnings per common share	$	1.00	$	0.48	$	1.21	$	0.57

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Regulatory Capital Requirements and Restrictions on Subsidiary Cash

6 Months Ended

Jun. 30, 2024

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 June 30, 2024 and December 31, 2023, the Bank was not required to maintain reserve balances in cash on hand or on deposit with Federal Reserve Banks, and therefore no amounts were held in reserve for each of these periods.

A comparison of the Company's and the Bank's capital with the corresponding minimum regulatory requirements in effect at June 30, 2024 and December 31, 2023, 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 June 30, 2024
Consolidated:
Total capital/risk weighted assets	$675,817	12.62%	$562,159	10.50%	N/A	N/A
Tier 1 capital/risk weighted assets	554,283	10.35	455,081	8.50	N/A	N/A
Common equity tier 1 capital/risk weighted assets	511,901	9.56	374,773	7.00	N/A	N/A
Tier 1 leverage capital/average assets	554,283	8.29	267,327	4.00	N/A	N/A
MidWestOne Bank:
Total capital/risk weighted assets	$673,406	12.61%	$560,759	10.50%	$534,056	10.00%
Tier 1 capital/risk weighted assets	616,872	11.55	453,948	8.50	427,245	8.00
Common equity tier 1 capital/risk weighted assets	616,872	11.55	373,839	7.00	347,137	6.50
Tier 1 leverage capital/average assets	616,872	9.24	267,151	4.00	333,939	5.00
At December 31, 2023
Consolidated:
Total capital/risk weighted assets	$668,748	12.53%	$560,596	10.50%	N/A	N/A
Tier 1 capital/risk weighted assets	554,177	10.38	453,816	8.50	N/A	N/A
Common equity tier 1 capital/risk weighted assets	511,884	9.59	373,731	7.00	N/A	N/A
Tier 1 leverage capital/average assets	554,177	8.58	258,487	4.00	N/A	N/A
MidWestOne Bank:
Total capital/risk weighted assets	$656,027	12.49%	$551,658	10.50%	$525,388	10.00%
Tier 1 capital/risk weighted assets	606,456	11.54	446,580	8.50	420,310	8.00
Common equity tier 1 capital/risk weighted assets	606,456	11.54	367,772	7.00	341,502	6.50
Tier 1 leverage capital/average assets	606,456	9.39	258,339	4.00	322,924	5.00

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

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2024

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:

	June 30, 2024		December 31, 2023
(in thousands)
Commitments to extend credit	$	1,194,005	$	1,203,001
Commitments to sell loans	2,850		1,045
Standby letters of credit	6,599		7,795
Total	$	1,203,454	$	1,211,841

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 June 30, 2024 and December 31, 2023, the liability for off-balance-sheet credit losses totaled $5.5 million and $4.6 million, respectively. For the six months ended June 30, 2024, $0.9 million credit loss expense was recorded, with $0.1 million credit loss expense recorded for the six months ended June 30, 2023.

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 12%, 12%, and 10%, respectively, as of June 30, 2024.

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Fair Value of Financial Instruments and Fair Value Measurements

6 Months Ended

Jun. 30, 2024

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 2023 Annual Report on Form 10-K, filed with the SEC on March 8, 2024.

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 foreclosed assets.

Recurring Basis

The following tables summarize assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023, by level within the fair value hierarchy:

	Fair Value Measurement at June 30, 2024 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Assets:
Available for sale debt securities:
U.S. Treasury securities	$	250	$	—	$	250	$	—
State and political subdivisions	113,902		—		113,902		—
Mortgage-backed securities	5,096		—		5,096		—
Collateralized loan obligations	52,667		—		52,667		—
Collateralized mortgage obligations	172,628		—		172,628		—
Corporate debt securities	426,491		—		426,491		—
Derivative assets	28,691		—		28,642		49
Mortgage servicing rights	13,094		—		13,094		—
Liabilities:
Derivative liabilities	$	23,671	$	—	$	23,671	$	—

	Fair Value Measurement at December 31, 2023 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Assets:
Debt securities available for sale:
State and political subdivisions	$	130,139	$	—	$	130,139	$	—
Mortgage-backed securities	5,311		—		5,311		—
Collateralized loan obligations	50,437		—		50,437		—
Collateralized mortgage obligations	169,196		—		169,196		—
Corporate debt securities	440,051		—		440,051		—
Derivative assets	25,093		—		25,043		50
Mortgage servicing rights	13,333		—		13,333		—
Liabilities:
Derivative liabilities	$	24,057	$	—	$	24,057	$	—

There were no transfers of assets between Level 3 and other levels of the fair value hierarchy during the six months ended June 30, 2024 or the year ended December 31, 2023. 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)	June 30, 2024		December 31, 2023		Valuation Techniques(s)	Unobservable Input	Range of Inputs			Weighted Average
Interest rate lock commitments	$	49	$	50	Quoted or published market prices of similar instruments, adjusted for factors such as pull-through rate assumptions	Pull-through rate	60%	-	100%	86%

Nonrecurring Basis

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

	Fair Value Measurement at June 30, 2024 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Collateral dependent individually analyzed loans	$	2,409	$	—	$	—	$	2,409
Foreclosed assets, net	6,053		—		—		6,053

	Fair Value Measurement at December 31, 2023 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Collateral dependent individually analyzed loans	$	6,524	$	—	$	—	$	6,524
Foreclosed assets, net	3,929		—		—		3,929

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)	June 30, 2024		December 31, 2023		Valuation Techniques(s)	Unobservable Input	Range of Inputs			Weighted Average
Collateral dependent individually analyzed loans	$	2,409	$	6,524	Fair value of collateral	Valuation adjustments	—%	-	8%	5%
Foreclosed assets, net	$	6,053	$	3,929	Fair value of collateral	Valuation adjustments	7%	-	19%	14%

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 June 30, 2024 and December 31, 2023 were as follows:

	June 30, 2024
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	101,568	$	101,568	$	101,568	$	—	$	—
Debt securities available for sale	771,034		771,034		—		771,034		—
Debt securities held to maturity	1,053,080		857,372		—		857,372		—
Loans held for sale	2,850		2,898		—		2,898		—
Loans held for investment, net	4,233,332		4,112,203		—		—		4,112,203
Interest receivable	30,202		30,202		—		30,202		—
FHLB stock	5,096		5,096		—		5,096		—
Derivative assets	28,691		28,691		—		28,642		49
Financial liabilities:
Noninterest bearing deposits	882,472		882,472		882,472		—		—
Interest bearing deposits	4,529,947		4,507,277		3,073,258		1,434,019		—
Short-term borrowings	414,684		414,684		414,684		—		—
Finance leases payable	504		504		—		504		—
FHLB borrowings	250		236		—		236		—
Junior subordinated notes issued to capital trusts	42,382		38,065		—		38,065		—
Subordinated debentures	64,203		61,589		—		61,589		—
Other long-term debt	7,500		7,500		—		7,500		—
Derivative liabilities	23,671		23,671		—		23,671		—

	December 31, 2023
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	81,727	$	81,727	$	81,727	$	—	$	—
Debt securities available for sale	795,134		795,134		—		795,134		—
Debt securities held to maturity	1,075,190		895,263		—		895,263		—
Loans held for sale	1,045		1,083		—		1,083		—
Loans held for investment, net	4,075,447		3,953,368		—		—		3,953,368
Interest receivable	29,768		29,768		—		29,768		—
FHLB stock	5,806		5,806		—		5,806		—
Derivative assets	25,093		25,093		—		25,043		50
Financial liabilities:
Noninterest bearing deposits	897,053		897,053		897,053		—		—
Interest bearing deposits	4,498,620		4,489,322		3,076,582		1,412,740		—
Short-term borrowings	300,264		300,264		300,264		—		—
Finance leases payable	604		604		—		604		—
FHLB borrowings	6,262		6,199		—		6,199		—
Junior subordinated notes issued to capital trusts	42,293		37,938		—		37,938		—
Subordinated debentures	64,137		61,940		—		61,940		—
Other long-term debt	10,000		10,000		—		10,000		—
Derivative liabilities	24,057		24,057		—		24,057		—

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Leases

6 Months Ended

Jun. 30, 2024

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	June 30, 2024			December 31, 2023
Operating lease right-of-use assets	Other assets	$	1,784		$	2,337
Finance lease right-of-use asset	Premises and equipment, net	207			255
Total right-of-use assets		$	1,991		$	2,592
Operating lease liability	Other liabilities	$	2,427		$	3,078
Finance lease liability	Long-term debt	504			604
Total lease liabilities		$	2,931		$	3,682
Weighted-average remaining lease term:	Operating leases	11.86 years			10.20 years
	Finance lease	2.17 years			2.67 years
Weighted-average discount rate:	Operating leases	4.79		%	4.43		%
	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				Six Months Ended
	June 30,				June 30,
(in thousands)	2024		2023		2024		2023
Lease Costs
Operating lease cost	$	233	$	296	$	621	$	588
Variable lease cost	7		4		14		11
Interest on lease liabilities(1)	11		15		24		32
Amortization of right-of-use assets	24		24		48		48
Net lease cost	$	275	$	339	$	707	$	679
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	694	$	592	$	1,516	$	1,197
Operating cash flows from finance lease	11		15		24		32
Finance cash flows from finance lease	51		45		100		89
Supplemental non-cash information on lease liabilities:
Right-of-use assets obtained in exchange for new operating lease liabilities	39		—		195		311

(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 six months ending December 31, 2024 and the succeeding annual periods were as follows:

(in thousands)	Finance Leases		Operating Leases
December 31, 2024	$	126	$	333
December 31, 2025	254		559
December 31, 2026	172		447
December 31, 2027	—		302
December 31, 2028	—		138
Thereafter	—		1,600
Total undiscounted lease payment	$	552	$	3,379
Amounts representing interest	(48)		(952)
Lease liability	$	504	$	2,427

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	June 30, 2024			December 31, 2023
Operating lease right-of-use assets	Other assets	$	1,784		$	2,337
Finance lease right-of-use asset	Premises and equipment, net	207			255
Total right-of-use assets		$	1,991		$	2,592
Operating lease liability	Other liabilities	$	2,427		$	3,078
Finance lease liability	Long-term debt	504			604
Total lease liabilities		$	2,931		$	3,682
Weighted-average remaining lease term:	Operating leases	11.86 years			10.20 years
	Finance lease	2.17 years			2.67 years
Weighted-average discount rate:	Operating leases	4.79		%	4.43		%
	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				Six Months Ended
	June 30,				June 30,
(in thousands)	2024		2023		2024		2023
Lease Costs
Operating lease cost	$	233	$	296	$	621	$	588
Variable lease cost	7		4		14		11
Interest on lease liabilities(1)	11		15		24		32
Amortization of right-of-use assets	24		24		48		48
Net lease cost	$	275	$	339	$	707	$	679
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	694	$	592	$	1,516	$	1,197
Operating cash flows from finance lease	11		15		24		32
Finance cash flows from finance lease	51		45		100		89
Supplemental non-cash information on lease liabilities:
Right-of-use assets obtained in exchange for new operating lease liabilities	39		—		195		311

(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 six months ending December 31, 2024 and the succeeding annual periods were as follows:

(in thousands)	Finance Leases		Operating Leases
December 31, 2024	$	126	$	333
December 31, 2025	254		559
December 31, 2026	172		447
December 31, 2027	—		302
December 31, 2028	—		138
Thereafter	—		1,600
Total undiscounted lease payment	$	552	$	3,379
Amounts representing interest	(48)		(952)
Lease liability	$	504	$	2,427

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

The following tables summarize the changes in accumulated other comprehensive income (loss) by component, net of tax:

For the Three Months Ended June 30,
(in thousands)	Unrealized Gain (Loss) from AFS Debt Securities		Reclassification of AFS Debt Securities to HTM		Unrealized Gain (Loss) from Cash Flow Hedging Instruments		Total
Balance, March 31, 2023	$	(82,227)	$	3,239	$	103	$	(78,885)
Other comprehensive (loss) income before reclassifications	(6,571)		449		2,481		(3,641)
Amounts reclassified from AOCI	—		—		(178)		(178)
Net current-period other comprehensive (loss) income	(6,571)		449		2,303		(3,819)
Balance, June 30, 2023	$	(88,798)	$	3,688	$	2,406	$	(82,704)
Balance, March 31, 2024	$	(67,676)	$	4,885	$	1,987	$	(60,804)
Other comprehensive income before reclassifications	2,258		365		581		3,204
Amounts reclassified from AOCI	53		—		(588)		(535)
Net current-period other comprehensive income (loss)	2,311		365		(7)		2,669
Balance, June 30, 2024	$	(65,365)	$	5,250	$	1,980	$	(58,135)
For the Six Months Ended June 30,
(in thousands)	Unrealized Gain (Loss) from AFS Debt Securities		Reclassification of AFS Debt Securities to HTM		Unrealized Gain (Loss) from Cash Flow Hedging Instruments		Total
Balance, December 31, 2022	$	(91,852)	$	2,805	$	—	$	(89,047)
Other comprehensive (loss) income before reclassifications	(6,784)		883		2,584		(3,317)
Amounts reclassified from AOCI	9,838		—		(178)		9,660
Net current-period other comprehensive income	3,054		883		2,406		6,343
Balance, June 30, 2023	$	(88,798)	$	3,688	$	2,406	$	(82,704)
Balance, December 31, 2023	$	(69,915)	$	4,511	$	505	$	(64,899)
Other comprehensive income before reclassifications	3,865		739		2,652		7,256
Amounts reclassified from AOCI	685		—		(1,177)		(492)
Net current-period other comprehensive income	4,550		739		1,475		6,764
Balance, June 30, 2024	$	(65,365)	$	5,250	$	1,980	$	(58,135)

The following table presents reclassifications out of AOCI:

	Three-Months Ended June 30,				Six-Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Investment securities (gains) losses, net	$	(33)	$	2	$	(69)	$	13,172
Interest income	104		—		986		—
Interest expense	(787)		(238)		(1,575)		(238)
Income tax (expense) benefit	181		58		166		(3,274)
Net of tax	$	(535)	$	(178)	$	(492)	$	9,660

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Subsequent Events

6 Months Ended

Jun. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

The Company has evaluated events that have occurred subsequent to June 30, 2024 and has concluded there are no other subsequent events that would require recognition in the accompanying consolidated financial statements.

On July 23, 2024, the board of directors of the Company declared a cash dividend of $0.2425 per share payable on September 17, 2024 to shareholders of record as of the close of business on September 3, 2024.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net income	$ 15,819	$ 7,594	$ 19,088	$ 8,991

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Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
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)

6 Months Ended

Jun. 30, 2024

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, 2023, filed with the SEC on March 8, 2024.

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 six months ended June 30, 2024 may not be indicative of results for the year ending December 31, 2024, 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, 2023, filed with the SEC on March 8, 2024.

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, southwestern Wisconsin, Denver, Colorado, and, until June 7, 2024, Naples and Ft. Myers, Florida. 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 June 30, 2024

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.

On November 27, 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. Enhanced disclosures about significant segment expenses are included within this ASU. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with an option to early adopt. The amendments should be applied retrospectively to all prior periods presented in the financial statements, with the segment expense categories and amounts disclosed in prior periods being based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the impact of ASU 2023-07.

On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures. Additional transparency about income tax information through improvements to income tax disclosures, primarily related to the rate reconciliation and income taxes paid information, will be required. The amendments are effective for annual periods beginning after December 15, 2024, with an option to early adopt. The amendments should be applied on a prospective basis, with retrospective application being permitted. The Company is currently evaluating the impact of ASU 2023-09.

Accounting Guidance Adopted in 2024

On March 29, 2023, the FASB issued ASU 2023-02, Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method. Under this ASU, if certain conditions are met, a reporting entity may elect to account for its tax equity investments by using the proportional amortization method regardless of the program from which it receives income tax credits. The amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with an option to early adopt. The amendments must be applied on either a modified retrospective or a retrospective basis, with certain exceptions for low-income-housing tax credit structures that are not accounted for using the proportional amortization method. The adoption of ASU 2023-02 was applied on a modified retrospective basis 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, including AFS debt securities and loans. 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 has previously 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, including brokered deposits. 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.

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 2023 Annual Report on Form 10-K, filed with the SEC on March 8, 2024.

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 foreclosed assets.

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Business Combinations and Divestitures (Tables)

6 Months Ended

Jun. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [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)	January 31, 2024
Merger consideration
Cash consideration	$	32,600
Identifiable net assets acquired, at fair value
Assets acquired
Cash and due from banks	$	462
Interest earning deposits in banks	3,517
Debt securities	52,493
Loans held for investment	207,095
Premises and equipment	13,470
Core deposit intangible	7,100
Other assets	4,987
Total assets acquired	289,124
Liabilities assumed
Deposits	$	(224,248)
Short-term borrowings	(37,500)
Other liabilities	(3,417)
Total liabilities assumed	(265,165)
Identifiable net assets acquired, at fair value	23,959
Goodwill	$	8,641

Schedule of Business Acquisition, Pro Forma Information

For illustrative purposes only, the following table presents certain unaudited pro forma information for the three and six months ended June 30, 2024 and June 30, 2023. This unaudited, estimated pro forma information was calculated as if DNVB 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 DNVB 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.

	Unaudited
	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands, except per share amounts)	2024		2023		2024		2023
Total revenues	$	57,791	$	48,610	$	103,075	$	87,573
Net income (loss)	$	16,407	$	7,339	$	22,812	$	5,547
EPS - basic	$	1.04	$	0.47	$	1.45	$	0.35
EPS - diluted	$	1.04	$	0.47	$	1.45	$	0.35

Schedule of Business Acquisition and Divesture Information

The following table summarizes acquisition and divestiture-related expenses incurred during the three and six months ended June 30, 2024 and June 30, 2023, which are included in the respective income statement line items, for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2024		2023		2024		2023
Noninterest Expense
Compensation and employee benefits	$	73	$	—	$	314	$	70
Occupancy expense of premises, net	—		—		152		—
Equipment	28		—		177		—
Legal and professional	462		—		1,035		—
Data processing	251		—		312		65
Marketing	—		—		32		—
Communications	8		—		9		—
Other	32		—		137		1
Total acquisition and divestiture-related expenses	$	854	$	—	$	2,168	$	136

Schedule of Assets and Liabilities Related to the Branch Sale

The following is a summary of the assets and liabilities related to the branch sale:

	June 7, 2024
Assets
Cash and due from banks	$	353
Loans held for investment, net of unearned income	163,302
Allowance for credit losses	(1,943)
Total loans held for investment, net	161,359
Premises and equipment	3,511
Goodwill	1,730
Other assets	375
Total assets	$	167,328
Liabilities
Deposits	$	133,296
Other liabilities	231
Total liabilities	$	133,527

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Debt Securities (Tables)

6 Months Ended

Jun. 30, 2024

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 June 30, 2024
(in thousands)	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Loss related to Debt Securities		Fair Value
Available for Sale
U.S. Treasury securities	$	250	$	—	$	—	$	—	$	250
State and political subdivisions	122,727		1		8,826		—		113,902
Mortgage-backed securities	5,232		4		140		—		5,096
Collateralized loan obligations	52,563		168		64		—		52,667
Collateralized mortgage obligations	195,077		23		22,472		—		172,628
Corporate debt securities	468,082		114		41,705		—		426,491
Total available for sale debt securities	$	843,931	$	310	$	73,207	$	—	$	771,034
Held to Maturity
State and political subdivisions	$	531,332	$	—	$	77,366	$	—	$	453,966
Mortgage-backed securities	71,993		—		12,879		—		59,114
Collateralized mortgage obligations	449,755		—		105,463		—		344,292
Total held to maturity debt securities	$	1,053,080	$	—	$	195,708	$	—	$	857,372
(1) Amortized cost for the held to maturity securities includes $0.2 million of unamortized gain in state and political subdivisions, $76 thousand of unamortized gains in mortgage-backed securities and $8.8 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, 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	$	139,482	$	2	$	9,345	$	—	$	130,139
Mortgage-backed securities	5,448		5		142		—		5,311
Collateralized loan obligations	50,541		135		239		—		50,437
Collateralized mortgage obligations	190,304		—		21,108		—		169,196
Corporate debt securities	487,361		57		47,367		—		440,051
Total available for sale debt securities	$	873,136	$	199	$	78,201	$	—	$	795,134
Held to Maturity
State and political subdivisions	$	532,422	$	—	$	65,932	$	—	$	466,490
Mortgage-backed securities	74,904		—		11,635		—		63,269
Collateralized mortgage obligations	467,864		—		102,360		—		365,504
Total held to maturity debt securities	$	1,075,190	$	—	$	179,927	$	—	$	895,263
(1) Amortized cost for the held to maturity securities includes $0.2 million of unamortized gain in state and political subdivisions, $58 thousand of unamortized gains in mortgage-backed securities and $9.7 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.

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 June 30, 2024
(in thousands)	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Loss related to Debt Securities		Fair Value
Available for Sale
U.S. Treasury securities	$	250	$	—	$	—	$	—	$	250
State and political subdivisions	122,727		1		8,826		—		113,902
Mortgage-backed securities	5,232		4		140		—		5,096
Collateralized loan obligations	52,563		168		64		—		52,667
Collateralized mortgage obligations	195,077		23		22,472		—		172,628
Corporate debt securities	468,082		114		41,705		—		426,491
Total available for sale debt securities	$	843,931	$	310	$	73,207	$	—	$	771,034
Held to Maturity
State and political subdivisions	$	531,332	$	—	$	77,366	$	—	$	453,966
Mortgage-backed securities	71,993		—		12,879		—		59,114
Collateralized mortgage obligations	449,755		—		105,463		—		344,292
Total held to maturity debt securities	$	1,053,080	$	—	$	195,708	$	—	$	857,372
(1) Amortized cost for the held to maturity securities includes $0.2 million of unamortized gain in state and political subdivisions, $76 thousand of unamortized gains in mortgage-backed securities and $8.8 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, 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	$	139,482	$	2	$	9,345	$	—	$	130,139
Mortgage-backed securities	5,448		5		142		—		5,311
Collateralized loan obligations	50,541		135		239		—		50,437
Collateralized mortgage obligations	190,304		—		21,108		—		169,196
Corporate debt securities	487,361		57		47,367		—		440,051
Total available for sale debt securities	$	873,136	$	199	$	78,201	$	—	$	795,134
Held to Maturity
State and political subdivisions	$	532,422	$	—	$	65,932	$	—	$	466,490
Mortgage-backed securities	74,904		—		11,635		—		63,269
Collateralized mortgage obligations	467,864		—		102,360		—		365,504
Total held to maturity debt securities	$	1,075,190	$	—	$	179,927	$	—	$	895,263
(1) Amortized cost for the held to maturity securities includes $0.2 million of unamortized gain in state and political subdivisions, $58 thousand of unamortized gains in mortgage-backed securities and $9.7 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.

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 June 30, 2024, aggregated by investment category and length of time in a continuous loss position:

		As of June 30, 2024
	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	132	$	1,372	$	80	$	110,214	$	8,746	$	111,586	$	8,826
Mortgage-backed securities	21	100		1		4,677		139		4,777		140
Collateralized loan obligations	3	13,039		42		2,878		22		15,917		64
Collateralized mortgage obligations	21	47,816		679		119,410		21,793		167,226		22,472
Corporate debt securities	127	—		—		417,973		41,705		417,973		41,705
Total	304	$	62,327	$	802	$	655,152	$	72,405	$	717,479	$	73,207

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, 2023, aggregated by investment category and length of time in a continuous loss position:

		As of December 31, 2023
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)
State and political subdivisions	149	$	8,417	$	492	$	114,713	$	8,853	$	123,130	$	9,345
Mortgage-backed securities	19	—		—		4,906		142		4,906		142
Collateralized loan obligations	2	17,696		239		—		—		17,696		239
Collateralized mortgage obligations	20	6,278		90		127,792		21,018		134,070		21,108
Corporate debt securities	133	2,377		80		429,222		47,287		431,599		47,367
Total	323	$	34,768	$	901	$	676,633	$	77,300	$	711,401	$	78,201

Schedule of Proceeds and Realized Gains (Losses)

Proceeds and gross realized gains and losses on debt securities available for sale for the three and six months ended June 30, 2024 and 2023, were as follows:

	Three Months Ended				Six Months Ended
(in thousands)	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Proceeds from sales of debt securities available for sale	$	—	$	—	$	52,323	$	218,667
Gross realized losses from sales of debt securities available for sale(1)	—		—		—		(13,170)
Net realized loss from sales of debt securities available for sale(1)	$	—	$	—	$	—	$	(13,170)
(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 $33 thousand and $69 thousand for the three and six months ended June 30, 2024, respectively, with $2 thousand net realized loss from the call of debt securities recorded during the three and six months ended June 30, 2023.

Schedule of Investments Classified by Contractual Maturity Date

The contractual maturity distribution of investment debt securities at June 30, 2024 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	$	79,950	$	78,771	$	12,280	$	11,902
Due after one year through five years	355,490		327,084		148,692		134,904
Due after five years through ten years	131,097		113,941		258,869		216,714
Due after ten years	24,522		20,847		111,491		90,446
	$	591,059	$	540,643	$	531,332	$	453,966
Mortgage-backed securities	5,232		5,096		71,993		59,114
Collateralized loan obligations	52,563		52,667		—		—
Collateralized mortgage obligations	195,077		172,628		449,755		344,292
Total	$	843,931	$	771,034	$	1,053,080	$	857,372

XML

Loans Receivable and the Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Schedule of Loans by Lending Classification

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

	As of
(in thousands)	June 30, 2024		December 31, 2023
Agricultural	$	107,983	$	118,414
Commercial and industrial	1,120,983		1,075,003
Commercial real estate:
Construction & development	351,646		323,195
Farmland	183,641		184,955
Multifamily	430,054		383,178
Commercial real estate-other	1,348,515		1,333,982
Total commercial real estate	2,313,856		2,225,310
Residential real estate:
One- to four- family first liens	492,541		459,798
One- to four- family junior liens	176,105		180,639
Total residential real estate	668,646		640,437
Consumer	75,764		67,783
Loans held for investment, net of unearned income	4,287,232		4,126,947
Allowance for credit losses	(53,900)		(51,500)
Total loans held for investment, net	$	4,233,332	$	4,075,447

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
June 30, 2024
Agricultural	$	107,502	$	—	$	60	$	421	$	107,983	$	—
Commercial and industrial	1,104,010		493		—		16,480		1,120,983		—
Commercial real estate:
Construction and development	351,202		213		231		—		351,646		—
Farmland	180,388		1,851		—		1,402		183,641		—
Multifamily	429,783		271		—		—		430,054		—
Commercial real estate-other	1,345,528		436		97		2,454		1,348,515		—
Total commercial real estate	2,306,901		2,771		328		3,856		2,313,856		—
Residential real estate:
One- to four- family first liens	485,926		3,506		1,927		1,182		492,541		338
One- to four- family junior liens	175,090		298		367		350		176,105		6
Total residential real estate	661,016		3,804		2,294		1,532		668,646		344
Consumer	75,371		189		99		105		75,764		89
Total	$	4,254,800	$	7,257	$	2,781	$	22,394	$	4,287,232	$	433

			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, 2023
Agricultural	$	117,852	$	338	$	—	$	224	$	118,414	$	—
Commercial and industrial	1,058,301		440		401		15,861		1,075,003		—
Commercial real estate:
Construction and development	323,165		30		—		—		323,195		—
Farmland	182,759		677		352		1,167		184,955		—
Multifamily	383,178		—		—		—		383,178		—
Commercial real estate-other	1,327,727		2,129		1,290		2,836		1,333,982		—
Total commercial real estate	2,216,829		2,836		1,642		4,003		2,225,310		—
Residential real estate:
One- to four- family first liens	453,212		3,572		1,741		1,273		459,798		468
One- to four- family junior liens	179,339		356		690		254		180,639		—
Total residential real estate	632,551		3,928		2,431		1,527		640,437		468
Consumer	67,622		118		28		15		67,783		—
Total	$	4,093,155	$	7,660	$	4,502	$	21,630	$	4,126,947	$	468

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)	June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023
Agricultural	$	421	$	235	$	219	$	12	$	—	$	—
Commercial and industrial	16,645		17,770		12,116		12,549		—		—
Commercial real estate:
Construction and development	—		—		—		—		—		—
Farmland	1,530		1,654		1,390		1,490		—		—
Multifamily	—		—		—		—		—		—
Commercial real estate-other	2,717		3,441		2,454		853		—		—
Total commercial real estate	4,247		5,095		3,844		2,343		—		—
Residential real estate:
One- to four- family first liens	2,535		1,888		1,290		455		338		468
One- to four- family junior liens	796		876		121		—		6		—
Total residential real estate	3,331		2,764		1,411		455		344		468
Consumer	51		27		—		—		89		—
Total	$	24,695	$	25,891	$	17,590	$	15,359	$	433	$	468

Schedule of Credit Quality Indicator

The following tables set 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 June 30, 2024. As of June 30, 2024, there were no 'loss' rated credits.

	Term Loans by Origination Year												Revolving Loans
June 30, 2024 (in thousands)	2024		2023		2022		2021		2020		Prior				Total
Agricultural
Pass	$	9,931	$	8,394	$	10,678	$	6,426	$	2,177	$	1,599	$	64,512	$	103,717
Special mention / watch	147		215		443		245		100		478		1,365		2,993
Substandard	30		—		222		156		212		213		440		1,273
Doubtful	—		—		—		—		—		—		—		—
Total	$	10,108	$	8,609	$	11,343	$	6,827	$	2,489	$	2,290	$	66,317	$	107,983
Commercial and industrial
Pass	$	85,109	$	161,638	$	194,275	$	182,208	$	107,822	$	125,602	$	179,462	$	1,036,116
Special mention / watch	93		7,736		17,163		897		3,055		5,626		10,159		44,729
Substandard	468		654		732		2,952		76		33,875		1,381		40,138
Doubtful	—		—		—		—		—		—		—		—
Total	$	85,670	$	170,028	$	212,170	$	186,057	$	110,953	$	165,103	$	191,002	$	1,120,983
CRE - Construction and development
Pass	$	51,903	$	148,008	$	112,679	$	27,381	$	3,077	$	1,242	$	5,723	$	350,013
Special mention / watch	623		—		—		—		—		—		467		1,090
Substandard	—		312		231		—		—		—		—		543
Doubtful	—		—		—		—		—		—		—		—
Total	$	52,526	$	148,320	$	112,910	$	27,381	$	3,077	$	1,242	$	6,190	$	351,646
CRE - Farmland
Pass	$	13,716	$	25,478	$	41,723	$	43,094	$	16,797	$	16,846	$	2,397	$	160,051
Special mention / watch	820		—		5,858		3,979		5,675		644		865		17,841
Substandard	566		384		382		499		1,183		2,735		—		5,749
Doubtful	—		—		—		—		—		—		—		—
Total	$	15,102	$	25,862	$	47,963	$	47,572	$	23,655	$	20,225	$	3,262	$	183,641
CRE - Multifamily
Pass	$	16,937	$	42,485	$	121,613	$	106,455	$	71,270	$	21,265	$	1,722	$	381,747
Special mention / watch	11,109		—		452		271		16,650		12,333		—		40,815
Substandard	—		—		—		7,492		—		—		—		7,492
Doubtful	—		—		—		—		—		—		—		—
Total	$	28,046	$	42,485	$	122,065	$	114,218	$	87,920	$	33,598	$	1,722	$	430,054
CRE - Other
Pass	$	40,075	$	159,183	$	312,547	$	243,668	$	223,127	$	179,759	$	68,353	$	1,226,712
Special mention / watch	526		8,013		6,468		3,611		4,311		6,261		5,698		34,888
Substandard	1,311		243		26,141		17,959		16,761		24,500		—		86,915
Doubtful	—		—		—		—		—		—		—		—
Total	$	41,912	$	167,439	$	345,156	$	265,238	$	244,199	$	210,520	$	74,051	$	1,348,515
RRE - One- to four- family first liens
Pass / Performing	$	38,297	$	58,650	$	130,613	$	92,734	$	51,605	$	96,948	$	13,562	$	482,409
Special mention / watch	56		723		706		64		593		1,755		—		3,897
Substandard / Nonperforming	—		1,260		897		550		104		3,424		—		6,235
Doubtful	—		—		—		—		—		—		—		—
Total	$	38,353	$	60,633	$	132,216	$	93,348	$	52,302	$	102,127	$	13,562	$	492,541
RRE - One- to four- family junior liens
Performing	$	9,492	$	18,965	$	25,328	$	16,535	$	6,921	$	8,880	$	89,182	$	175,303
Nonperforming	—		—		395		69		22		316		—		802
Total	$	9,492	$	18,965	$	25,723	$	16,604	$	6,943	$	9,196	$	89,182	$	176,105
Consumer
Performing	$	11,129	$	26,788	$	13,575	$	7,707	$	3,137	$	7,526	$	5,762	$	75,624
Nonperforming	—		46		77		—		17		—		—		140
Total	$	11,129	$	26,834	$	13,652	$	7,707	$	3,154	$	7,526	$	5,762	$	75,764

	Term Loans by Origination Year												Revolving Loans
June 30, 2024 (in thousands)	2024		2023		2022		2021		2020		Prior				Total
Total by Credit Quality Indicator Category
Pass	$	255,968	$	603,836	$	924,128	$	701,966	$	475,875	$	443,261	$	335,731	$	3,740,765
Special mention / watch	13,374		16,687		31,090		9,067		30,384		27,097		18,554		146,253
Substandard	2,375		2,853		28,605		29,608		18,336		64,747		1,821		148,345
Doubtful	—		—		—		—		—		—		—		—
Performing	20,621		45,753		38,903		24,242		10,058		16,406		94,944		250,927
Nonperforming	—		46		472		69		39		316		—		942
Total	$	292,338	$	669,175	$	1,023,198	$	764,952	$	534,692	$	551,827	$	451,050	$	4,287,232
	Term Loans by Origination Year												Revolving Loans
June 30, 2024 (in thousands)	2024		2023		2022		2021		2020		Prior				Total
Year-to-date Current Period Gross Write-offs
Agricultural	$	—	$	—	$	—	$	4	$	—	$	—	$	—	$	4
Commercial and industrial	—		42		330		145		29		222		—		768
CRE - Construction and development	—		—		—		—		—		—		—		—
CRE - Farmland	—		—		—		—		—		—		—		—
CRE - Multifamily	—		—		—		—		—		—		—		—
CRE - Other	—		—		—		—		—		35		—		35
RRE - One-to-four-family first liens	—		—		53		22		—		—		—		75
RRE - One-to-four-family junior liens	—		—		—		—		—		—		—		—
Consumer	—		338		196		3		1		12		—		550
Total Current Period Gross Write-offs	$	—	$	380	$	579	$	174	$	30	$	269	$	—	$	1,432

The following tables set 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, 2023. As of December 31, 2023, there were no 'loss' rated credits.

	Term Loans by Origination Year												Revolving Loans
December 31, 2023 (in thousands)	2023		2022		2021		2020		2019		Prior				Total
Agricultural
Pass	$	11,859	$	12,149	$	8,352	$	2,752	$	689	$	1,139	$	71,680	$	108,620
Special mention / watch	266		550		670		91		5		522		3,705		5,809
Substandard	709		193		302		208		—		224		2,349		3,985
Doubtful	—		—		—		—		—		—		—		—
Total	$	12,834	$	12,892	$	9,324	$	3,051	$	694	$	1,885	$	77,734	$	118,414
Commercial and industrial
Pass	$	176,021	$	224,924	$	193,011	$	117,326	$	25,555	$	116,661	$	147,690	$	1,001,188
Special mention / watch	2,541		416		3,209		3,385		193		272		14,692		24,708
Substandard	897		2,921		2,010		561		8,507		29,432		4,779		49,107
Doubtful	—		—		—		—		—		—		—		—
Total	$	179,459	$	228,261	$	198,230	$	121,272	$	34,255	$	146,365	$	167,161	$	1,075,003
CRE - Construction and development
Pass	$	99,803	$	163,126	$	43,189	$	3,393	$	821	$	700	$	9,552	$	320,584
Special mention / watch	1,097		—		464		—		—		—		467		2,028
Substandard	343		240		—		—		—		—		—		583
Doubtful	—		—		—		—		—		—		—		—
Total	$	101,243	$	163,366	$	43,653	$	3,393	$	821	$	700	$	10,019	$	323,195
CRE - Farmland
Pass	$	25,666	$	44,907	$	47,068	$	18,863	$	6,587	$	14,845	$	1,642	$	159,578
Special mention / watch	1,229		6,898		2,409		5,982		—		965		276		17,759
Substandard	1,830		210		1,542		1,052		926		2,029		29		7,618
Doubtful	—		—		—		—		—		—		—		—
Total	$	28,725	$	52,015	$	51,019	$	25,897	$	7,513	$	17,839	$	1,947	$	184,955
CRE - Multifamily
Pass	$	32,077	$	96,969	$	111,032	$	77,532	$	8,701	$	6,508	$	4,208	$	337,027
Special mention / watch	5,318		1,237		277		18,984		7,850		4,586		—		38,252
Substandard	—		—		7,572		327		—		—		—		7,899
Doubtful	—		—		—		—		—		—		—		—
Total	$	37,395	$	98,206	$	118,881	$	96,843	$	16,551	$	11,094	$	4,208	$	383,178
CRE - Other
Pass	$	199,698	$	295,066	$	256,718	$	250,676	$	77,509	$	90,170	$	51,827	$	1,221,664
Special mention / watch	364		1,306		3,300		4,823		4,282		2,395		3,856		20,326
Substandard	325		26,555		19,253		19,103		8,242		17,876		638		91,992
Doubtful	—		—		—		—		—		—		—		—
Total	$	200,387	$	322,927	$	279,271	$	274,602	$	90,033	$	110,441	$	56,321	$	1,333,982
RRE - One- to four- family first liens
Pass / Performing	$	62,644	$	125,777	$	92,767	$	54,028	$	19,674	$	81,660	$	13,283	$	449,833
Special mention / watch	629		716		36		620		1,827		319		—		4,147
Substandard / Nonperforming	1,156		191		738		165		164		3,404		—		5,818
Doubtful	—		—		—		—		—		—		—		—
Total	$	64,429	$	126,684	$	93,541	$	54,813	$	21,665	$	85,383	$	13,283	$	459,798
RRE - One- to four- family junior liens
Performing	$	23,551	$	29,919	$	18,733	$	7,292	$	2,590	$	7,867	$	89,810	$	179,762
Nonperforming	—		192		—		25		23		637		—		877
Total	$	23,551	$	30,111	$	18,733	$	7,317	$	2,613	$	8,504	$	89,810	$	180,639
Consumer
Performing	$	26,028	$	14,319	$	10,042	$	4,421	$	1,451	$	7,350	$	4,145	$	67,756
Nonperforming	—		22		—		—		3		2		—		27
Total	$	26,028	$	14,341	$	10,042	$	4,421	$	1,454	$	7,352	$	4,145	$	67,783

	Term Loans by Origination Year												Revolving Loans
December 31, 2023 (in thousands)	2023		2022		2021		2020		2019		Prior				Total
Total by Credit Quality Indicator Category
Pass	$	607,768	$	962,918	$	752,137	$	524,570	$	139,536	$	311,683	$	299,882	$	3,598,494
Special mention / watch	11,444		11,123		10,365		33,885		14,157		9,059		22,996		113,029
Substandard	5,260		30,310		31,417		21,416		17,839		52,965		7,795		167,002
Doubtful	—		—		—		—		—		—		—		—
Performing	49,579		44,238		28,775		11,713		4,041		15,217		93,955		247,518
Nonperforming	—		214		—		25		26		639		—		904
Total	$	674,051	$	1,048,803	$	822,694	$	591,609	$	175,599	$	389,563	$	424,628	$	4,126,947
	Term Loans by Origination Year												Revolving Loans
December 31, 2023 (in thousands)	2023		2022		2021		2020		2019		Prior				Total
Year-to-date Current Period Gross Write-offs
Agricultural	$	—	$	8	$	1	$	17	$	2	$	—	$	—	$	28
Commercial and industrial	239		343		223		133		464		45		—		1,447
CRE - Construction and development	—		—		—		—		—		—		—		—
CRE - Farmland	—		—		—		—		—		—		—		—
CRE - Multifamily	—		—		—		—		—		—		—		—
CRE - Other	—		—		—		—		—		2,337		—		2,337
RRE - One-to-four-family first liens	—		—		—		—		—		36		—		36
RRE - One-to-four-family junior liens	—		19		—		—		—		—		—		19
Consumer	—		621		30		12		12		10		—		685
Total Current Period Gross Write-offs	$	239	$	991	$	254	$	162	$	478	$	2,428	$	—	$	4,552

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 June 30, 2024 and 2023
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
For the Three Months Ended June 30, 2024
Beginning balance	$	648	$	21,882	$	26,772	$	5,014	$	1,584	$	55,900
Allocated to banking office sale	—		(51)		(1,795)		(94)		(3)		(1,943)
Charge-offs	—		(469)		—		(56)		(260)		(785)
Recoveries	—		223		6		4		28		261
Credit loss expense (benefit)(1)	(246)		1,423		(659)		(209)		158		467
Ending balance	$	402	$	23,008	$	24,324	$	4,659	$	1,507	$	53,900
For the Three Months Ended June 30, 2023
Beginning balance	$	513	$	22,345	$	21,833	$	4,545	$	564	$	49,800
Charge-offs	—		(189)		(812)		(33)		(125)		(1,159)
Recoveries	1		195		6		16		44		262
Credit loss expense (benefit) (1)	103		570		884		(135)		75		1,497
Ending balance	$	617	$	22,921	$	21,911	$	4,393	$	558	$	50,400
(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 of $0.8 million and $0.1 million related to off-balance sheet credit exposures for the three months ended June 30, 2024 and June 30, 2023, respectively.

	For the Six Months Ended June 30, 2024 and 2023
(in thousands)	Agricultural		Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Consumer		Total
For the Six Months Ended June 30, 2024
Beginning balance	$	613	$	21,743	$	23,759	$	4,762	$	623	$	51,500
Allocated in banking office sale	—		(51)		(1,795)		(94)		(3)		(1,943)
Charge-offs	(4)		(768)		(35)		(75)		(550)		(1,432)
Recoveries	355		269		14		13		68		719
Credit loss expense (benefit)(1)	(562)		1,815		2,381		53		1,369		5,056
Ending balance	$	402	$	23,008	$	24,324	$	4,659	$	1,507	$	53,900
For the Six Months Ended June 30, 2023
Beginning balance	$	923	$	22,855	$	20,123	$	4,678	$	621	$	49,200
Charge-offs	(1)		(509)		(830)		(33)		(273)		(1,646)
Recoveries	27		270		11		20		88		416
Credit loss (benefit) expense(1)	(332)		305		2,607		(272)		122		2,430
Ending balance	$	617	$	22,921	$	21,911	$	4,393	$	558	$	50,400
(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 of $0.9 million and $0.1 million related to off-balance sheet credit exposures for the six months ended June 30, 2024 and June 30, 2023, respectively.

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

	As of June 30, 2024
(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	$	219	$	16,024	$	6,320	$	1,564	$	—	$	24,127
Collectively evaluated for impairment	107,764		1,104,959		2,307,536		667,082		75,764		4,263,105
Total	$	107,983	$	1,120,983	$	2,313,856	$	668,646	$	75,764	$	4,287,232
Allowance for credit losses:
Individually evaluated for impairment	$	—	$	1,671	$	44	$	104	$	—	$	1,819
Collectively evaluated for impairment	402		21,337		24,280		4,555		1,507		52,081
Total	$	402	$	23,008	$	24,324	$	4,659	$	1,507	$	53,900

	As of December 31, 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	$	11	$	17,231	$	10,932	$	983	$	—	$	29,157
Collectively evaluated for impairment	118,403		1,057,772		2,214,378		639,454		67,783		4,097,790
Total	$	118,414	$	1,075,003	$	2,225,310	$	640,437	$	67,783	$	4,126,947
Allowance for credit losses:
Individually evaluated for impairment	$	—	$	2,616	$	705	$	16	$	—	$	3,337
Collectively evaluated for impairment	613		19,127		23,054		4,746		623		48,163
Total	$	613	$	21,743	$	23,759	$	4,762	$	623	$	51,500

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 June 30, 2024
(in thousands)	Primary Type of Collateral
	Real Estate		Equipment		Other		Total		ACL Allocation
Agricultural	$	219	$	—	$	—	$	219	$	—
Commercial and industrial	16,024		—		—		16,024		1,671
Commercial real estate:
Farmland	3,686		—		—		3,686		—
Commercial real estate-other	2,468		—		166		2,634		44
Residential real estate:
One- to four- family first liens	1,290		—		—		1,290		—
One- to four- family junior liens	274		—		—		274		104
Total	$	23,961	$	—	$	166	$	24,127	$	1,819

	As of December 31, 2023
(in thousands)	Primary Type of Collateral
	Real Estate		Equipment		Other		Total		ACL Allocation
Agricultural	$	11	$	—	$	—	$	11	$	—
Commercial and industrial	15,991		—		1,240		17,231		2,616
Commercial real estate:
Farmland	5,403		—		—		5,403		—
Commercial real estate-other	5,350		—		179		5,529		705
Residential real estate:
One- to four- family first liens	481		—		—		481		—
One- to four- family junior liens	—		—		502		502		16
Total	$	27,236	$	—	$	1,921	$	29,157	$	3,337

Schedule of TDRs by Class of Financing Receivable

The following tables present the amortized cost basis of loans as of June 30, 2024 and June 30, 2023 that were modified during the three and six months ended June 30, 2024 and June 30, 2023 and experiencing financial difficulty at the time of the modification by class and by type of modification:

	For the Three Months and Six Months Ended June 30, 2024
									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 June 30, 2024
Commercial and industrial	$	—	$	—	$	78	$	—	$	—	$	—	$	—	$	—	0.01	%
CRE - Construction and development	—		—		231		—		—		—		—		—		0.07	%
CRE - Farmland	—		—		381		—		—		—		—		—		0.21	%
CRE - Other	—		—		4,910		—		—		—		—		—		0.36	%
RRE - One- to four- family first liens	—		—		393		—		—		—		—		—		0.08	%
Total	$	—	$	—	$	5,993	$	—	$	—	$	—	$	—	$	—
Six Months Ended June 30, 2024
Commercial and industrial	$	—	$	—	$	453	$	—	$	—	$	—	$	—	$	—	0.04	%
CRE - Construction and development	—		—		231		—		—		—		—		—		0.07	%
CRE - Farmland	—		—		381		—		—		—		—		—		0.21	%
CRE - Other	—		—		5,107		—		—		—		—		—		0.38	%
RRE - One- to four- family first liens	—		252		393		—		—		—		—		—		0.13	%
RRE - One- to four- family junior liens	—		—		136		—		—		—		—		—		0.08	%
Total	$	—	$	252	$	6,701	$	—	$	—	$	—	$	—	$	—

	For the Three Months and Six Months Ended June 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 June 30, 2023
Agricultural	$	—	$	15	$	—	$	—	$	—	$	—	$	—	$	—	0.01	%
Commercial and industrial	—		272		732		—		—		—		192		—		0.11	%
CRE - Farmland	—		—		1,843		—		—		—		—		—		1.01	%
CRE - Other	—		158		—		—		—		—		—		—		0.01	%
RRE - One- to four- family first liens	—		—		80		—		—		—		—		—		0.02	%
Total	$	—	$	445	$	2,655	$	—	$	—	$	—	$	192	$	—
Six Months Ended June 30, 2023
Agricultural	$	—	$	15	$	—	$	—	$	—	$	—	$	—	$	—	0.01	%
Commercial and industrial	—		272		778		—		112		305		192		—		0.15	%
CRE - Farmland	—		—		1,843		—		—		—		—		—		1.01	%
CRE - Other	—		158		—		—		—		—		—		—		0.01	%
RRE - One- to four- family first liens	—		—		80		—		—		—		—		—		0.02	%
Total	$	—	$	445	$	2,701	$	—	$	112	$	305	$	192	$	—

The following tables present the performance, as of June 30, 2024 and June 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 June 30, 2024
(in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
Commercial and industrial	$	522	$	—	$	—	$	—	$	522
CRE - Construction and development	312		—		231		—		543
CRE - Farmland	381		—		—		352		733
CRE - Other	10,662		—		—		—		10,662
RRE - One- to four- family first liens	645		—		—		—		645
RRE - One- to four- family junior liens	149		—		—		—		149
Total	$	12,671	$	—	$	231	$	352	$	13,254
	As of June 30, 2023
(in thousands)	Current		30 - 59 Days Past Due		60 - 89 Days Past Due		90 Days or More Past Due		Total
Agricultural	$	—	$	15	$	—	$	—	$	15
Commercial and industrial	968		—		690		—		1,658
CRE - Farmland	1,843		—		—		—		1,843
CRE - Other	158		—		—		—		158
RRE - One- to four- family first liens	80		—		—		—		80
Total	$	3,049	$	15	$	690	$	—	$	3,754

The following tables present the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three and six months ended June 30, 2024 and June 30, 2023:

(dollars in thousands)	Principal Forgiveness		Weighted Average Interest Rate Reduction		Weighted Average Term Extension (Months)
Three Months Ended June 30, 2024
Commercial and industrial	$	—	—	%	26.0
CRE - Construction and development	—		—		0.8
CRE - Farmland	—		—		5.4
CRE - Other	—		—		7.1
RRE - One- to four- family first liens	—		—		210.1
Total	$	—	—	%	20.4
Six Months Ended June 30, 2024
Commercial and industrial	$	—	—	%	8.1
CRE - Construction and development	—		—		0.8
CRE - Farmland	—		—		5.4
CRE - Other	—		—		7.1
RRE - One- to four- family first liens	—		—		210.1
RRE - One- to four- family junior liens	—		—		122.0
Total	$	—	—	%	21.1

(dollars in thousands)	Principal Forgiveness		Weighted Average Interest Rate Reduction		Weighted Average Term Extension (Months)
Three Months Ended June 30, 2023
Commercial and industrial	$	—	—	%	6.5
CRE - Farmland	—		—		0.9
RRE - One- to four- family first liens	—		—		3.9
Total	$	—	—	%	2.9
Six Months Ended June 30, 2023
Commercial and industrial	$	63	1.25	%	8.3
CRE - Farmland	—		—		0.9
CRE - Other	18		7.00		2.5
RRE - One- to four- family first liens	—		—		3.9
Total	$	81	1.25	%	4.1

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Derivatives, Hedging Activities and Balance Sheet Offsetting (Tables)

6 Months Ended

Jun. 30, 2024

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 June 30, 2024						As of December 31, 2023
	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	$	50,111	$	2,577	$	416	$	41,101	$	2,071	$	902
Interest rate swaps - securities	150,000		174		20		150,000		—		821
Cash flow hedges
Interest rate swaps	200,000		2,651		—		200,000		940		264
Total	$	400,111	$	5,402	$	436	$	391,101	$	3,011	$	1,987
Not designated as hedging instruments:
Interest rate swaps	$	614,745	$	23,221	$	23,232	$	432,648	$	22,028	$	22,038
RPAs - protection sold	53,133		6		—		18,778		4		—
RPAs - protection purchased	30,633		—		3		31,145		—		9
Interest rate lock commitments	3,537		49		—		1,461		50		—
Interest rate forward loan sales contracts	3,551		13		—		2,075		—		23
Total	$	705,599	$	23,289	$	23,235	$	486,107	$	22,082	$	22,070

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The table below presents the effect of cash flow hedge accounting on AOCI for the three and six months ended June 30, 2024 and 2023:

	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 June 30,					Three Months Ended June 30,
(in thousands)	2024		2023			2024		2023
Interest rate swaps	$	778	$	3,321	Interest Expense	$	787	$	238
	Six Months Ended June 30,					Six Months Ended June 30,
(in thousands)	2024		2023			2024		2023
Interest rate swaps	$	3,550	$	3,459	Interest Expense	$	1,575	$	238

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 June 30,								For the Six Months Ended June 30,
	2024				2023				2024				2023
(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	$	483	$	—	$	190	$	—	$	891	$	—	$	349	$	—
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	(233)		—		(27)		—		(997)		—		535		—
Derivative designated as hedging instruments	507		—		658		—		1,530		—		255		—
Interest contracts - securities:
Hedged items	(103)		—		—		—		(986)		—		—		—
Derivative designated as hedging instruments	284		—		—		—		1,343		—		—		—

Schedule of Hedged Items In Fair Value Hedging Relationship

As of June 30, 2024, 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	$	47,070	$	(3,292)
Securities	$	149,582	$	(418)

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 June 30,				For the Six Months Ended June 30,
(in thousands)		2024		2023		2024		2023
Interest rate swaps	Other income	$	—	$	—	$	1	$	—
RPAs	Other income	2		—		7		69
Interest rate lock commitments	Loan revenue	(28)		(32)		(1)		62
Interest rate forward loan sales contracts	Loan revenue	21		49		36		19
Total		$	(5)	$	17	$	43	$	150

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 June 30, 2024 and December 31, 2023, 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 June 30, 2024
Asset Derivatives	$	28,691	$	—	$	28,691	$	—	$	17,444	$	11,247
Liability Derivatives	23,671		—		23,671		—		1,230		22,441
As of December 31, 2023
Asset Derivatives	$	25,093	$	—	$	25,093	$	—	$	15,549	$	9,544
Liability Derivatives	24,057		—		24,057		—		2,420		21,637

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

The following table presents the changes in the carrying amount of goodwill for the period indicated:

(in thousands)	As of June 30, 2024		December 31, 2023
Goodwill, beginning of period	$	62,477	$	62,477
Established in acquisition	8,641		—
Allocated to divestiture	(1,730)		—
Total goodwill, end of period	$	69,388	$	62,477

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 June 30, 2024						As of December 31, 2023
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangible	$	65,345	$	(44,562)	$	20,783	$	58,245	$	(41,499)	$	16,746
Customer relationship intangible	5,265		(5,160)		105		5,265		(5,008)		257
Other	2,700		(2,689)		11		2,700		(2,674)		26
	$	73,310	$	(52,411)	$	20,899	$	66,210	$	(49,181)	$	17,029
Indefinite-lived trade name intangible					7,040						7,040
Total other intangible assets, net					$	27,939					$	24,069

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 June 30, 2024						As of December 31, 2023
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangible	$	65,345	$	(44,562)	$	20,783	$	58,245	$	(41,499)	$	16,746
Customer relationship intangible	5,265		(5,160)		105		5,265		(5,008)		257
Other	2,700		(2,689)		11		2,700		(2,674)		26
	$	73,310	$	(52,411)	$	20,899	$	66,210	$	(49,181)	$	17,029
Indefinite-lived trade name intangible					7,040						7,040
Total other intangible assets, net					$	27,939					$	24,069

Schedule of Future Amortization Expense

The following table provides the estimated future amortization expense for the remaining six months of the year ending December 31, 2024 and the succeeding annual periods:

(in thousands)	Core Deposit Intangible		Customer Relationship Intangible		Other		Total
2024	$	2,826	$	87	$	9	$	2,922
2025	4,924		18		2		4,944
2026	3,840		—		—		3,840
2027	2,757		—		—		2,757
2028	2,110		—		—		2,110
Thereafter	4,326		—		—		4,326
Total	$	20,783	$	105	$	11	$	20,899

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Other Assets (Tables)

6 Months Ended

Jun. 30, 2024

Other Assets [Abstract]

Schedule of Other Assets

The components of the Company's other assets as of June 30, 2024 and December 31, 2023 were as follows:

(in thousands)	June 30, 2024		December 31, 2023
Bank-owned life insurance	$	99,367	$	98,039
Interest receivable	30,202		29,768
FHLB stock	5,096		5,806
Mortgage servicing rights	13,094		13,333
Operating lease right-of-use assets, net	1,784		2,337
Federal and state income taxes, current	—		1,556
Federal and state income taxes, deferred	28,577		31,218
Derivative assets	28,691		25,093
Other receivables/assets	17,810		15,630
	$	224,621	$	222,780

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Deposits (Tables)

6 Months Ended

Jun. 30, 2024

Deposits [Abstract]

Schedule of Deposit Liabilities

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

(in thousands)	June 30, 2024		December 31, 2023
Noninterest bearing deposits	$	882,472	$	897,053
Interest checking deposits	1,284,243		1,320,435
Money market deposits	1,043,376		1,105,493
Savings deposits	745,639		650,655
Time deposits of $250 and under	999,301		973,253
Time deposits over $250	457,388		448,784
Total deposits	$	5,412,419	$	5,395,673

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Short-Term Borrowings (Tables)

6 Months Ended

Jun. 30, 2024

Short-Term Debt [Abstract]

Schedule of Short-Term Borrowings

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

	June 30, 2024				December 31, 2023
(in thousands)	Weighted Average Rate		Balance		Weighted Average Rate		Balance
Securities sold under agreements to repurchase	0.67	%	$	5,684	0.72	%	$	5,064
Federal Home Loan Bank advances	5.52		4,000		5.64		10,200
Federal Reserve Bank borrowings	4.77		405,000		4.82		285,000
Total	4.72	%	$	414,684	4.78	%	$	300,264

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Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2024

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:

			June 30,		December 31,			June 30,		December 31,
			2024		2023			2024		2023
(in thousands)	Face Value		Book Value				Interest Rate(1)	Rate				Maturity Date	Callable Date
ATBancorp Statutory Trust I	$	7,732	$	6,992	$	6,970	1.68% Margin	7.28	%	7.33	%	06/15/2036	06/15/2011
ATBancorp Statutory Trust II	12,372		11,068		11,034		1.65% Margin	7.25	%	7.30	%	09/15/2037	06/15/2012
Barron Investment Capital Trust I	2,062		1,875		1,861		2.15% Margin	7.76	%	7.77	%	09/23/2036	09/23/2011
Central Bancshares Capital Trust II	7,217		6,983		6,964		3.50% Margin	9.10	%	9.15	%	03/15/2038	03/15/2013
MidWestOne Statutory Trust II	15,464		15,464		15,464		1.59% Margin	7.19	%	7.24	%	12/15/2037	12/15/2012
Total	$	44,847	$	42,382	$	42,293
(1) Interest rate is equal to the Three-month CME Term SOFR + 0.26% Spread + Applicable Margin

Other long-term borrowings were as follows as of June 30, 2024 and December 31, 2023:

	June 30, 2024				December 31, 2023
(in thousands)	Weighted Average Rate		Balance		Weighted Average Rate		Balance
Finance lease payable	8.89	%	$	504	8.89	%	$	604
FHLB borrowings	2.23		250		3.11		6,262
Note payable to unaffiliated bank	6.88		7,500		6.89		10,000
Total	6.86	%	$	8,254	5.56	%	$	16,866

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Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Earnings Per Share

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

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands, except per share amounts)	2024		2023		2024		2023
Basic Earnings Per Share:
Net income	$	15,819	$	7,594	$	19,088	$	8,991
Weighted average shares outstanding	15,763,414		15,680,386		15,743,056		15,665,103
Basic earnings per common share	$	1.00	$	0.48	$	1.21	$	0.57
Diluted Earnings Per Share:
Net income	$	15,819	$	7,594	$	19,088	$	8,991
Weighted average shares outstanding, including all dilutive potential shares	15,780,935		15,689,314		15,775,110		15,687,729
Diluted earnings per common share	$	1.00	$	0.48	$	1.21	$	0.57

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Regulatory Capital Requirements and Restrictions on Subsidiary Cash (Tables)

6 Months Ended

Jun. 30, 2024

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 June 30, 2024 and December 31, 2023, 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 June 30, 2024
Consolidated:
Total capital/risk weighted assets	$675,817	12.62%	$562,159	10.50%	N/A	N/A
Tier 1 capital/risk weighted assets	554,283	10.35	455,081	8.50	N/A	N/A
Common equity tier 1 capital/risk weighted assets	511,901	9.56	374,773	7.00	N/A	N/A
Tier 1 leverage capital/average assets	554,283	8.29	267,327	4.00	N/A	N/A
MidWestOne Bank:
Total capital/risk weighted assets	$673,406	12.61%	$560,759	10.50%	$534,056	10.00%
Tier 1 capital/risk weighted assets	616,872	11.55	453,948	8.50	427,245	8.00
Common equity tier 1 capital/risk weighted assets	616,872	11.55	373,839	7.00	347,137	6.50
Tier 1 leverage capital/average assets	616,872	9.24	267,151	4.00	333,939	5.00
At December 31, 2023
Consolidated:
Total capital/risk weighted assets	$668,748	12.53%	$560,596	10.50%	N/A	N/A
Tier 1 capital/risk weighted assets	554,177	10.38	453,816	8.50	N/A	N/A
Common equity tier 1 capital/risk weighted assets	511,884	9.59	373,731	7.00	N/A	N/A
Tier 1 leverage capital/average assets	554,177	8.58	258,487	4.00	N/A	N/A
MidWestOne Bank:
Total capital/risk weighted assets	$656,027	12.49%	$551,658	10.50%	$525,388	10.00%
Tier 1 capital/risk weighted assets	606,456	11.54	446,580	8.50	420,310	8.00
Common equity tier 1 capital/risk weighted assets	606,456	11.54	367,772	7.00	341,502	6.50
Tier 1 leverage capital/average assets	606,456	9.39	258,339	4.00	322,924	5.00

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

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2024

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:

	June 30, 2024		December 31, 2023
(in thousands)
Commitments to extend credit	$	1,194,005	$	1,203,001
Commitments to sell loans	2,850		1,045
Standby letters of credit	6,599		7,795
Total	$	1,203,454	$	1,211,841

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

6 Months Ended

Jun. 30, 2024

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 as of June 30, 2024 and December 31, 2023, by level within the fair value hierarchy:

	Fair Value Measurement at June 30, 2024 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Assets:
Available for sale debt securities:
U.S. Treasury securities	$	250	$	—	$	250	$	—
State and political subdivisions	113,902		—		113,902		—
Mortgage-backed securities	5,096		—		5,096		—
Collateralized loan obligations	52,667		—		52,667		—
Collateralized mortgage obligations	172,628		—		172,628		—
Corporate debt securities	426,491		—		426,491		—
Derivative assets	28,691		—		28,642		49
Mortgage servicing rights	13,094		—		13,094		—
Liabilities:
Derivative liabilities	$	23,671	$	—	$	23,671	$	—

	Fair Value Measurement at December 31, 2023 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Assets:
Debt securities available for sale:
State and political subdivisions	$	130,139	$	—	$	130,139	$	—
Mortgage-backed securities	5,311		—		5,311		—
Collateralized loan obligations	50,437		—		50,437		—
Collateralized mortgage obligations	169,196		—		169,196		—
Corporate debt securities	440,051		—		440,051		—
Derivative assets	25,093		—		25,043		50
Mortgage servicing rights	13,333		—		13,333		—
Liabilities:
Derivative liabilities	$	24,057	$	—	$	24,057	$	—

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)	June 30, 2024		December 31, 2023		Valuation Techniques(s)	Unobservable Input	Range of Inputs			Weighted Average
Interest rate lock commitments	$	49	$	50	Quoted or published market prices of similar instruments, adjusted for factors such as pull-through rate assumptions	Pull-through rate	60%	-	100%	86%

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)	June 30, 2024		December 31, 2023		Valuation Techniques(s)	Unobservable Input	Range of Inputs			Weighted Average
Collateral dependent individually analyzed loans	$	2,409	$	6,524	Fair value of collateral	Valuation adjustments	—%	-	8%	5%
Foreclosed assets, net	$	6,053	$	3,929	Fair value of collateral	Valuation adjustments	7%	-	19%	14%

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 June 30, 2024 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Collateral dependent individually analyzed loans	$	2,409	$	—	$	—	$	2,409
Foreclosed assets, net	6,053		—		—		6,053

	Fair Value Measurement at December 31, 2023 Using
(in thousands)	Total		Level 1		Level 2		Level 3
Collateral dependent individually analyzed loans	$	6,524	$	—	$	—	$	6,524
Foreclosed assets, net	3,929		—		—		3,929

Schedule of Fair Value, by Balance Sheet Grouping

The carrying amount and estimated fair value of financial instruments at June 30, 2024 and December 31, 2023 were as follows:

	June 30, 2024
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	101,568	$	101,568	$	101,568	$	—	$	—
Debt securities available for sale	771,034		771,034		—		771,034		—
Debt securities held to maturity	1,053,080		857,372		—		857,372		—
Loans held for sale	2,850		2,898		—		2,898		—
Loans held for investment, net	4,233,332		4,112,203		—		—		4,112,203
Interest receivable	30,202		30,202		—		30,202		—
FHLB stock	5,096		5,096		—		5,096		—
Derivative assets	28,691		28,691		—		28,642		49
Financial liabilities:
Noninterest bearing deposits	882,472		882,472		882,472		—		—
Interest bearing deposits	4,529,947		4,507,277		3,073,258		1,434,019		—
Short-term borrowings	414,684		414,684		414,684		—		—
Finance leases payable	504		504		—		504		—
FHLB borrowings	250		236		—		236		—
Junior subordinated notes issued to capital trusts	42,382		38,065		—		38,065		—
Subordinated debentures	64,203		61,589		—		61,589		—
Other long-term debt	7,500		7,500		—		7,500		—
Derivative liabilities	23,671		23,671		—		23,671		—

	December 31, 2023
(in thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	81,727	$	81,727	$	81,727	$	—	$	—
Debt securities available for sale	795,134		795,134		—		795,134		—
Debt securities held to maturity	1,075,190		895,263		—		895,263		—
Loans held for sale	1,045		1,083		—		1,083		—
Loans held for investment, net	4,075,447		3,953,368		—		—		3,953,368
Interest receivable	29,768		29,768		—		29,768		—
FHLB stock	5,806		5,806		—		5,806		—
Derivative assets	25,093		25,093		—		25,043		50
Financial liabilities:
Noninterest bearing deposits	897,053		897,053		897,053		—		—
Interest bearing deposits	4,498,620		4,489,322		3,076,582		1,412,740		—
Short-term borrowings	300,264		300,264		300,264		—		—
Finance leases payable	604		604		—		604		—
FHLB borrowings	6,262		6,199		—		6,199		—
Junior subordinated notes issued to capital trusts	42,293		37,938		—		37,938		—
Subordinated debentures	64,137		61,940		—		61,940		—
Other long-term debt	10,000		10,000		—		10,000		—
Derivative liabilities	24,057		24,057		—		24,057		—

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Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Schedule of Lease Assets and Liabilities

(in thousands)	Classification	June 30, 2024			December 31, 2023
Operating lease right-of-use assets	Other assets	$	1,784		$	2,337
Finance lease right-of-use asset	Premises and equipment, net	207			255
Total right-of-use assets		$	1,991		$	2,592
Operating lease liability	Other liabilities	$	2,427		$	3,078
Finance lease liability	Long-term debt	504			604
Total lease liabilities		$	2,931		$	3,682
Weighted-average remaining lease term:	Operating leases	11.86 years			10.20 years
	Finance lease	2.17 years			2.67 years
Weighted-average discount rate:	Operating leases	4.79		%	4.43		%
	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				Six Months Ended
	June 30,				June 30,
(in thousands)	2024		2023		2024		2023
Lease Costs
Operating lease cost	$	233	$	296	$	621	$	588
Variable lease cost	7		4		14		11
Interest on lease liabilities(1)	11		15		24		32
Amortization of right-of-use assets	24		24		48		48
Net lease cost	$	275	$	339	$	707	$	679
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	694	$	592	$	1,516	$	1,197
Operating cash flows from finance lease	11		15		24		32
Finance cash flows from finance lease	51		45		100		89
Supplemental non-cash information on lease liabilities:
Right-of-use assets obtained in exchange for new operating lease liabilities	39		—		195		311

(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 six months ending December 31, 2024 and the succeeding annual periods were as follows:

(in thousands)	Finance Leases		Operating Leases
December 31, 2024	$	126	$	333
December 31, 2025	254		559
December 31, 2026	172		447
December 31, 2027	—		302
December 31, 2028	—		138
Thereafter	—		1,600
Total undiscounted lease payment	$	552	$	3,379
Amounts representing interest	(48)		(952)
Lease liability	$	504	$	2,427

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 six months ending December 31, 2024 and the succeeding annual periods were as follows:

(in thousands)	Finance Leases		Operating Leases
December 31, 2024	$	126	$	333
December 31, 2025	254		559
December 31, 2026	172		447
December 31, 2027	—		302
December 31, 2028	—		138
Thereafter	—		1,600
Total undiscounted lease payment	$	552	$	3,379
Amounts representing interest	(48)		(952)
Lease liability	$	504	$	2,427

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2024

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following tables summarize the changes in accumulated other comprehensive income (loss) by component, net of tax:

For the Three Months Ended June 30,
(in thousands)	Unrealized Gain (Loss) from AFS Debt Securities		Reclassification of AFS Debt Securities to HTM		Unrealized Gain (Loss) from Cash Flow Hedging Instruments		Total
Balance, March 31, 2023	$	(82,227)	$	3,239	$	103	$	(78,885)
Other comprehensive (loss) income before reclassifications	(6,571)		449		2,481		(3,641)
Amounts reclassified from AOCI	—		—		(178)		(178)
Net current-period other comprehensive (loss) income	(6,571)		449		2,303		(3,819)
Balance, June 30, 2023	$	(88,798)	$	3,688	$	2,406	$	(82,704)
Balance, March 31, 2024	$	(67,676)	$	4,885	$	1,987	$	(60,804)
Other comprehensive income before reclassifications	2,258		365		581		3,204
Amounts reclassified from AOCI	53		—		(588)		(535)
Net current-period other comprehensive income (loss)	2,311		365		(7)		2,669
Balance, June 30, 2024	$	(65,365)	$	5,250	$	1,980	$	(58,135)
For the Six Months Ended June 30,
(in thousands)	Unrealized Gain (Loss) from AFS Debt Securities		Reclassification of AFS Debt Securities to HTM		Unrealized Gain (Loss) from Cash Flow Hedging Instruments		Total
Balance, December 31, 2022	$	(91,852)	$	2,805	$	—	$	(89,047)
Other comprehensive (loss) income before reclassifications	(6,784)		883		2,584		(3,317)
Amounts reclassified from AOCI	9,838		—		(178)		9,660
Net current-period other comprehensive income	3,054		883		2,406		6,343
Balance, June 30, 2023	$	(88,798)	$	3,688	$	2,406	$	(82,704)
Balance, December 31, 2023	$	(69,915)	$	4,511	$	505	$	(64,899)
Other comprehensive income before reclassifications	3,865		739		2,652		7,256
Amounts reclassified from AOCI	685		—		(1,177)		(492)
Net current-period other comprehensive income	4,550		739		1,475		6,764
Balance, June 30, 2024	$	(65,365)	$	5,250	$	1,980	$	(58,135)

Schedule of Reclassification out of Accumulated Other Comprehensive Income

The following table presents reclassifications out of AOCI:

	Three-Months Ended June 30,				Six-Months Ended June 30,
(in thousands)	2024		2023		2024		2023
Investment securities (gains) losses, net	$	(33)	$	2	$	(69)	$	13,172
Interest income	104		—		986		—
Interest expense	(787)		(238)		(1,575)		(238)
Income tax (expense) benefit	181		58		166		(3,274)
Net of tax	$	(535)	$	(178)	$	(492)	$	9,660

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Nature of Business and Significant Accounting Policies (Details) $ in Millions		6 Months Ended
	Jan. 31, 2024 USD ($)	Jun. 30, 2024 segment	Jun. 07, 2024 branch
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of reportable segments | segment		1
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Florida Banking Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Premium paid			7.50%
Number of bank branches sold | branch			1
DNVB
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Business combination, consideration transferred | $	$ 32.6

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Business Combinations and Divestitures - Additional Information (Details) $ in Thousands	Jun. 07, 2024 USD ($) branch	Jan. 31, 2024 USD ($)
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Florida Banking Operations
Business Acquisition [Line Items]
Premium paid	7.50%
Number of bank branches sold | branch	1
Gain on branch sale	$ 11,100
DNVB
Business Acquisition [Line Items]
Interest acquired		100.00%
Cash consideration		$ 32,600

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Business Combinations and Divestitures - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Jan. 31, 2024	Jun. 30, 2024	Dec. 31, 2023	Dec. 31, 2022
Liabilities assumed
Goodwill		$ 69,388	$ 62,477	$ 62,477
DNVB
Merger consideration
Cash consideration	$ 32,600
Assets acquired
Cash and due from banks	462
Interest earning deposits in banks	3,517
Debt securities	52,493
Loans held for investment	207,095
Premises and equipment	13,470
Core deposit intangible	7,100
Other assets	4,987
Total assets acquired	289,124
Liabilities assumed
Deposits	(224,248)
Short-term borrowings	(37,500)
Other liabilities	(3,417)
Total liabilities assumed	(265,165)
Identifiable net assets acquired, at fair value	23,959
Goodwill	$ 8,641

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Business Combinations and Divestitures - Pro Forma Information (Details) - DNVB - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Business Acquisition [Line Items]
Total revenues	$ 57,791	$ 48,610	$ 103,075	$ 87,573
Net income (loss)	$ 16,407	$ 7,339	$ 22,812	$ 5,547
EPS - basic (in dollars per share)	$ 1.04	$ 0.47	$ 1.45	$ 0.35
EPS - diluted (in dollars per share)	$ 1.04	$ 0.47	$ 1.45	$ 0.35

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Business Combinations and Divestitures - Acquisition and Divesture-Related Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Noninterest Expense
Compensation and employee benefits	$ 20,985	$ 20,386	$ 41,915	$ 39,993
Occupancy expense of premises, net	2,435	2,574	5,248	5,320
Equipment	2,530	2,435	5,130	4,606
Legal and professional	2,253	1,682	4,312	3,418
Data processing	1,645	1,521	3,005	2,884
Communications	191	260	387	521
Other	2,304	2,469	4,376	4,445
DNVB
Noninterest Expense
Compensation and employee benefits	73	0	314	70
Occupancy expense of premises, net	0	0	152	0
Equipment	28	0	177	0
Legal and professional	462	0	1,035	0
Data processing	251	0	312	65
Marketing	0	0	32	0
Communications	8	0	9	0
Other	32	0	137	1
Total acquisition and divestiture-related expenses	$ 854	$ 0	$ 2,168	$ 136

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Business Combinations and Divestitures - Assets and Liabilities Related to the Branch Sale (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Florida Banking Operations $ in Thousands	Jun. 07, 2024 USD ($)
Assets
Cash and due from banks	$ 353
Loans held for investment, net of unearned income	163,302
Allowance for credit losses	(1,943)
Total loans held for investment, net	161,359
Premises and equipment	3,511
Goodwill	1,730
Other assets	375
Total assets	167,328
Liabilities
Deposits	133,296
Other liabilities	231
Total liabilities	$ 133,527

XML

Debt Securities - Additional Information (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($) security	Dec. 31, 2023 USD ($) security
Available for Sale
Net unrealized after tax loss from transfer of AFS to held-to-maturity classification	$ 6,200
Debt securities available for sale	771,034	$ 795,134
Interest receivable	$ 30,202	$ 29,768
Securities in continuous unrealized loss position | security	304	323
Accumulated unrealized losses	$ 73,207	$ 78,201
Asset Pledged as Collateral without Right
Available for Sale
Debt securities available for sale	1,160,000	1,160,000
Debt Securities Available For Sale Securities
Available for Sale
Interest receivable	5,100	5,500
Debt, Held to Maturity Securities
Available for Sale
Interest receivable	3,600	3,700
State and political subdivisions
Available for Sale
Debt securities available for sale	$ 113,902	$ 130,139
Securities in continuous unrealized loss position | security	132	149
Accumulated unrealized losses	$ 8,826	$ 9,345
Mortgage-backed securities
Available for Sale
Debt securities available for sale	$ 5,096	$ 5,311
Securities in continuous unrealized loss position | security	21	19
Accumulated unrealized losses	$ 140	$ 142
Collateralized mortgage obligations
Available for Sale
Debt securities available for sale	$ 172,628	$ 169,196
Securities in continuous unrealized loss position | security	21	20
Accumulated unrealized losses	$ 22,472	$ 21,108
Mortgage backed securities and collateralized mortgage obligations
Available for Sale
Accumulated unrealized losses	22,600
Collateralized loan obligations
Available for Sale
Debt securities available for sale	$ 52,667	$ 50,437
Securities in continuous unrealized loss position | security	3	2
Accumulated unrealized losses	$ 64	$ 239
Corporate debt securities
Available for Sale
Debt securities available for sale	$ 426,491	$ 440,051
Securities in continuous unrealized loss position | security	127	133
Accumulated unrealized losses	$ 41,705	$ 47,367

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Debt Securities - Schedule of Available for Sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Available for Sale
Amortized Cost	$ 843,931	$ 873,136
Gross Unrealized Gains	310	199
Gross Unrealized Losses	73,207	78,201
Allowance for Credit Loss related to Debt Securities	0	0
Fair Value	771,034	795,134
Held to Maturity
Amortized cost	1,053,080	1,075,190
Gross Unrealized Gains	0	0
Gross Unrealized Losses	195,708	179,927
Allowance for Credit Loss related to Debt Securities	0	0
Fair Value	857,372	895,263
U.S. Treasury securities
Available for Sale
Amortized Cost	250
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Allowance for Credit Loss related to Debt Securities	0
Fair Value	250
State and political subdivisions
Available for Sale
Amortized Cost	122,727	139,482
Gross Unrealized Gains	1	2
Gross Unrealized Losses	8,826	9,345
Allowance for Credit Loss related to Debt Securities	0	0
Fair Value	113,902	130,139
Held to Maturity
Amortized cost	531,332	532,422
Gross Unrealized Gains	0	0
Gross Unrealized Losses	77,366	65,932
Allowance for Credit Loss related to Debt Securities	0	0
Fair Value	453,966	466,490
Gain related to reclassification	200	200
Mortgage-backed securities
Available for Sale
Amortized Cost	5,232	5,448
Gross Unrealized Gains	4	5
Gross Unrealized Losses	140	142
Allowance for Credit Loss related to Debt Securities	0	0
Fair Value	5,096	5,311
Held to Maturity
Amortized cost	71,993	74,904
Gross Unrealized Gains	0	0
Gross Unrealized Losses	12,879	11,635
Allowance for Credit Loss related to Debt Securities	0	0
Fair Value	59,114	63,269
Gain related to reclassification	76	58
Collateralized loan obligations
Available for Sale
Amortized Cost	52,563	50,541
Gross Unrealized Gains	168	135
Gross Unrealized Losses	64	239
Allowance for Credit Loss related to Debt Securities	0	0
Fair Value	52,667	50,437
Held to Maturity
Amortized cost	0
Fair Value	0
Corporate debt securities
Available for Sale
Amortized Cost	468,082	487,361
Gross Unrealized Gains	114	57
Gross Unrealized Losses	41,705	47,367
Allowance for Credit Loss related to Debt Securities	0	0
Fair Value	426,491	440,051
Collateralized mortgage obligations
Available for Sale
Amortized Cost	195,077	190,304
Gross Unrealized Gains	23	0
Gross Unrealized Losses	22,472	21,108
Allowance for Credit Loss related to Debt Securities	0	0
Fair Value	172,628	169,196
Held to Maturity
Amortized cost	449,755	467,864
Gross Unrealized Gains	0	0
Gross Unrealized Losses	105,463	102,360
Allowance for Credit Loss related to Debt Securities	0	0
Fair Value	344,292	365,504
Loss related to reclassification	$ 8,800	$ 9,700

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Debt Securities - Schedule of Available for Sale Securities in Continuous Loss Position (Details) $ in Thousands	Jun. 30, 2024 USD ($) security	Dec. 31, 2023 USD ($) security
Available for Sale
Number of Securities | security	304	323
Less than 12 Months, Fair Value	$ 62,327	$ 34,768
Less than 12 Months, Unrealized Losses	802	901
12 Months or More, Fair Value	655,152	676,633
12 Months or More, Unrealized Loss	72,405	77,300
Fair Value	717,479	711,401
Unrealized Losses	$ 73,207	$ 78,201
State and political subdivisions
Available for Sale
Number of Securities | security	132	149
Less than 12 Months, Fair Value	$ 1,372	$ 8,417
Less than 12 Months, Unrealized Losses	80	492
12 Months or More, Fair Value	110,214	114,713
12 Months or More, Unrealized Loss	8,746	8,853
Fair Value	111,586	123,130
Unrealized Losses	$ 8,826	$ 9,345
Mortgage-backed securities
Available for Sale
Number of Securities | security	21	19
Less than 12 Months, Fair Value	$ 100	$ 0
Less than 12 Months, Unrealized Losses	1	0
12 Months or More, Fair Value	4,677	4,906
12 Months or More, Unrealized Loss	139	142
Fair Value	4,777	4,906
Unrealized Losses	$ 140	$ 142
Collateralized loan obligations
Available for Sale
Number of Securities | security	3	2
Less than 12 Months, Fair Value	$ 13,039	$ 17,696
Less than 12 Months, Unrealized Losses	42	239
12 Months or More, Fair Value	2,878	0
12 Months or More, Unrealized Loss	22	0
Fair Value	15,917	17,696
Unrealized Losses	$ 64	$ 239
Collateralized mortgage obligations
Available for Sale
Number of Securities | security	21	20
Less than 12 Months, Fair Value	$ 47,816	$ 6,278
Less than 12 Months, Unrealized Losses	679	90
12 Months or More, Fair Value	119,410	127,792
12 Months or More, Unrealized Loss	21,793	21,018
Fair Value	167,226	134,070
Unrealized Losses	$ 22,472	$ 21,108
Corporate debt securities
Available for Sale
Number of Securities | security	127	133
Less than 12 Months, Fair Value	$ 0	$ 2,377
Less than 12 Months, Unrealized Losses	0	80
12 Months or More, Fair Value	417,973	429,222
12 Months or More, Unrealized Loss	41,705	47,287
Fair Value	417,973	431,599
Unrealized Losses	$ 41,705	$ 47,367

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Debt Securities - Schedule of Proceeds and Gross Realized Gains (Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Debt Securities [Abstract]
Proceeds from sales of debt securities available for sale	$ 0	$ 0	$ 52,323	$ 218,667
Gross realized losses from sales of debt securities available for sale	0	0	0	(13,170)
Net realized gain from sales of debt securities available for sale	0	0	0	(13,170)
Net gain (loss) from call or maturity of debt securities	$ 33	$ (2)	$ 69	$ (2)

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Debt Securities - Schedule of Investments Classified by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Amortized Cost
Due in one year or less, Amortized Cost	$ 79,950
Due after one year through five years, Amortized Cost	355,490
Due after five years through ten years, Amortized Cost	131,097
Due after ten years, Amortized Cost	24,522
Total maturing securities, Amortized Cost	591,059
Amortized Cost	843,931	$ 873,136
Fair Value
Due in one year or less, estimated fair value	78,771
Due after one year through five years, estimated fair value	327,084
Due after five years through ten years, estimated fair value	113,941
Due after ten years, estimated fair value	20,847
Total maturing securities, fair value	540,643
Debt securities available for sale at fair value	771,034	795,134
Amortized Cost
Due in one year or less, Amortized Cost	12,280
Due after one year through five years, Amortized Cost	148,692
Due after five years through ten years, Amortized Cost	258,869
Due after ten years, Amortized Cost	111,491
Total maturing securities, Amortized Cost	531,332
Held to maturity securities at Amortized Cost	1,053,080	1,075,190
Fair Value
Due in one year or less, estimated fair value	11,902
Due after one year through five years, estimated fair value	134,904
Due after five years through ten years, estimated fair value	216,714
Due after ten years, estimated fair value	90,446
Total maturing securities, fair value	453,966
Held to maturity securities at fair value	857,372	895,263
Mortgage-backed securities
Amortized Cost
Amortized Cost	5,232	5,448
Fair Value
Debt securities available for sale at fair value	5,096	5,311
Amortized Cost
Held to maturity securities at Amortized Cost	71,993	74,904
Fair Value
Held to maturity securities at fair value	59,114	63,269
Collateralized loan obligations
Amortized Cost
Amortized Cost	52,563	50,541
Fair Value
Debt securities available for sale at fair value	52,667	50,437
Amortized Cost
Held to maturity securities at Amortized Cost	0
Fair Value
Held to maturity securities at fair value	0
Collateralized mortgage obligations
Amortized Cost
Amortized Cost	195,077	190,304
Fair Value
Debt securities available for sale at fair value	172,628	169,196
Amortized Cost
Held to maturity securities at Amortized Cost	449,755	467,864
Fair Value
Held to maturity securities at fair value	$ 344,292	$ 365,504

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Loans Receivable and the Allowance for Credit Losses - Composition of Loans by Lending Classification (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	$ 4,287,232		$ 4,126,947
Allowance for credit losses	(53,900)	$ (55,900)	(51,500)	$ (50,400)	$ (49,800)	$ (49,200)
Total loans held for investment, net	4,233,332		4,075,447
Asset Pledged as Collateral without Right | FHLB borrowings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	1,250,000		1,130,000
Agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	107,983		118,414
Allowance for credit losses	(402)	(648)	(613)	(617)	(513)	(923)
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	1,120,983		1,075,003
Allowance for credit losses	(23,008)	(21,882)	(21,743)	(22,921)	(22,345)	(22,855)
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	2,313,856		2,225,310
Allowance for credit losses	(24,324)	(26,772)	(23,759)	(21,911)	(21,833)	(20,123)
Commercial real estate | Construction & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	351,646		323,195
Commercial real estate | Farmland
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	183,641		184,955
Commercial real estate | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	430,054		383,178
Commercial real estate | Commercial real estate-other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	1,348,515		1,333,982
Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	668,646		640,437
Allowance for credit losses	(4,659)	(5,014)	(4,762)	(4,393)	(4,545)	(4,678)
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	492,541		459,798
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	176,105		180,639
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment, net of unearned income	75,764		67,783
Allowance for credit losses	$ (1,507)	$ (1,584)	$ (623)	$ (558)	$ (564)	$ (621)

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Loans Receivable and the Allowance for Credit Losses - Amortized Cost Basis Based on Delinquency Status (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	$ 4,287,232	$ 4,126,947
90 Days or More Past Due And Accruing	433	468
Current
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	4,254,800	4,093,155
30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	7,257	7,660
60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	2,781	4,502
90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	22,394	21,630
Agricultural
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	107,983	118,414
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	107,502	117,852
Agricultural | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	0	338
Agricultural | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	60	0
Agricultural | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	421	224
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	1,120,983	1,075,003
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	1,104,010	1,058,301
Commercial and industrial | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	493	440
Commercial and industrial | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	0	401
Commercial and industrial | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	16,480	15,861
Commercial real estate
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	2,313,856	2,225,310
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	2,306,901	2,216,829
Commercial real estate | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	2,771	2,836
Commercial real estate | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	328	1,642
Commercial real estate | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	3,856	4,003
Commercial real estate | Construction & development
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	351,646	323,195
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	351,202	323,165
Commercial real estate | Construction & development | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	213	30
Commercial real estate | Construction & development | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	231	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	183,641	184,955
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	180,388	182,759
Commercial real estate | Farmland | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	1,851	677
Commercial real estate | Farmland | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	0	352
Commercial real estate | Farmland | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	1,402	1,167
Commercial real estate | Multifamily
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	430,054	383,178
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	429,783	383,178
Commercial real estate | Multifamily | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	271	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	1,348,515	1,333,982
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	1,345,528	1,327,727
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	436	2,129
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	97	1,290
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	2,454	2,836
Residential real estate
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	668,646	640,437
90 Days or More Past Due And Accruing	344	468
Residential real estate | Current
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	661,016	632,551
Residential real estate | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	3,804	3,928
Residential real estate | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	2,294	2,431
Residential real estate | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	1,532	1,527
Residential real estate | One- to four- family first liens
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	492,541	459,798
90 Days or More Past Due And Accruing	338	468
Residential real estate | One- to four- family first liens | Current
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	485,926	453,212
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	3,506	3,572
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	1,927	1,741
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	1,182	1,273
Residential real estate | One- to four- family junior liens
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	176,105	180,639
90 Days or More Past Due And Accruing	6	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	175,090	179,339
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	298	356
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	367	690
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	350	254
Consumer
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	75,764	67,783
90 Days or More Past Due And Accruing	89	0
Consumer | Current
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	75,371	67,622
Consumer | 30 - 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	189	118
Consumer | 60 - 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	99	28
Consumer | 90 Days or More Past Due
Financing Receivable, Past Due [Line Items]
Loans held for investment, net of unearned income	$ 105	$ 15

XML

Loans Receivable and the Allowance for Credit Losses - Nonaccrual Status and Interest Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Nonaccrual	$ 24,695		$ 24,695		$ 25,891
Nonaccrual with no Allowance for Credit Losses	17,590		17,590		15,359
90 Days or More Past Due And Accruing	433		433		468
Interest Income Recognized on Nonaccrual	123	$ 38	252	$ 94
Agricultural
Financing Receivable, Past Due [Line Items]
Nonaccrual	421		421		235
Nonaccrual with no Allowance for Credit Losses	219		219		12
90 Days or More Past Due And Accruing	0		0		0
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Nonaccrual	16,645		16,645		17,770
Nonaccrual with no Allowance for Credit Losses	12,116		12,116		12,549
90 Days or More Past Due And Accruing	0		0		0
Commercial real estate
Financing Receivable, Past Due [Line Items]
Nonaccrual	4,247		4,247		5,095
Nonaccrual with no Allowance for Credit Losses	3,844		3,844		2,343
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	1,530		1,530		1,654
Nonaccrual with no Allowance for Credit Losses	1,390		1,390		1,490
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	2,717		2,717		3,441
Nonaccrual with no Allowance for Credit Losses	2,454		2,454		853
90 Days or More Past Due And Accruing	0		0		0
Residential real estate
Financing Receivable, Past Due [Line Items]
Nonaccrual	3,331		3,331		2,764
Nonaccrual with no Allowance for Credit Losses	1,411		1,411		455
90 Days or More Past Due And Accruing	344		344		468
Residential real estate | One- to four- family first liens
Financing Receivable, Past Due [Line Items]
Nonaccrual	2,535		2,535		1,888
Nonaccrual with no Allowance for Credit Losses	1,290		1,290		455
90 Days or More Past Due And Accruing	338		338		468
Residential real estate | One- to four- family junior liens
Financing Receivable, Past Due [Line Items]
Nonaccrual	796		796		876
Nonaccrual with no Allowance for Credit Losses	121		121		0
90 Days or More Past Due And Accruing	6		6		0
Consumer
Financing Receivable, Past Due [Line Items]
Nonaccrual	51		51		27
Nonaccrual with no Allowance for Credit Losses	0		0		0
90 Days or More Past Due And Accruing	$ 89		$ 89		$ 0

XML

Loans Receivable and the Allowance for Credit Losses - Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
2024	$ 292,338		$ 292,338		$ 674,051
2023	669,175		669,175		1,048,803
2022	1,023,198		1,023,198		822,694
2021	764,952		764,952		591,609
2020	534,692		534,692		175,599
Prior	551,827		551,827		389,563
Revolving Loans	451,050		451,050		424,628
Loans held for investment, net of unearned income	4,287,232		4,287,232		4,126,947
Year-to-date Current Period Gross Write-offs
2024			0		239
2023			380		991
2022			579		254
2021			174		162
2020			30		478
Prior			269		2,428
Revolving Loans			0		0
Total	785	$ 1,159	1,432	$ 1,646	4,552
Pass / Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2024	20,621		20,621		49,579
2023	45,753		45,753		44,238
2022	38,903		38,903		28,775
2021	24,242		24,242		11,713
2020	10,058		10,058		4,041
Prior	16,406		16,406		15,217
Revolving Loans	94,944		94,944		93,955
Loans held for investment, net of unearned income	250,927		250,927		247,518
Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0		0		0
2023	46		46		214
2022	472		472		0
2021	69		69		25
2020	39		39		26
Prior	316		316		639
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	942		942		904
Agricultural
Financing Receivable, Credit Quality Indicator [Line Items]
2024	10,108		10,108		12,834
2023	8,609		8,609		12,892
2022	11,343		11,343		9,324
2021	6,827		6,827		3,051
2020	2,489		2,489		694
Prior	2,290		2,290		1,885
Revolving Loans	66,317		66,317		77,734
Loans held for investment, net of unearned income	107,983		107,983		118,414
Year-to-date Current Period Gross Write-offs
2024			0		0
2023			0		8
2022			0		1
2021			4		17
2020			0		2
Prior			0		0
Revolving Loans			0		0
Total	0	0	4	1	28
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2024	85,670		85,670		179,459
2023	170,028		170,028		228,261
2022	212,170		212,170		198,230
2021	186,057		186,057		121,272
2020	110,953		110,953		34,255
Prior	165,103		165,103		146,365
Revolving Loans	191,002		191,002		167,161
Loans held for investment, net of unearned income	1,120,983		1,120,983		1,075,003
Year-to-date Current Period Gross Write-offs
2024			0		239
2023			42		343
2022			330		223
2021			145		133
2020			29		464
Prior			222		45
Revolving Loans			0		0
Total	469	189	768	509	1,447
Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Loans held for investment, net of unearned income	2,313,856		2,313,856		2,225,310
Year-to-date Current Period Gross Write-offs
Total	0	812	35	830
Commercial real estate | Construction & development
Financing Receivable, Credit Quality Indicator [Line Items]
2024	52,526		52,526		101,243
2023	148,320		148,320		163,366
2022	112,910		112,910		43,653
2021	27,381		27,381		3,393
2020	3,077		3,077		821
Prior	1,242		1,242		700
Revolving Loans	6,190		6,190		10,019
Loans held for investment, net of unearned income	351,646		351,646		323,195
Year-to-date Current Period Gross Write-offs
2024			0		0
2023			0		0
2022			0		0
2021			0		0
2020			0		0
Prior			0		0
Revolving Loans			0		0
Total			0		0
Commercial real estate | Farmland
Financing Receivable, Credit Quality Indicator [Line Items]
2024	15,102		15,102		28,725
2023	25,862		25,862		52,015
2022	47,963		47,963		51,019
2021	47,572		47,572		25,897
2020	23,655		23,655		7,513
Prior	20,225		20,225		17,839
Revolving Loans	3,262		3,262		1,947
Loans held for investment, net of unearned income	183,641		183,641		184,955
Year-to-date Current Period Gross Write-offs
2024			0		0
2023			0		0
2022			0		0
2021			0		0
2020			0		0
Prior			0		0
Revolving Loans			0		0
Total			0		0
Commercial real estate | Multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2024	28,046		28,046		37,395
2023	42,485		42,485		98,206
2022	122,065		122,065		118,881
2021	114,218		114,218		96,843
2020	87,920		87,920		16,551
Prior	33,598		33,598		11,094
Revolving Loans	1,722		1,722		4,208
Loans held for investment, net of unearned income	430,054		430,054		383,178
Year-to-date Current Period Gross Write-offs
2024			0		0
2023			0		0
2022			0		0
2021			0		0
2020			0		0
Prior			0		0
Revolving Loans			0		0
Total			0		0
Commercial real estate | Commercial real estate-other
Financing Receivable, Credit Quality Indicator [Line Items]
2024	41,912		41,912		200,387
2023	167,439		167,439		322,927
2022	345,156		345,156		279,271
2021	265,238		265,238		274,602
2020	244,199		244,199		90,033
Prior	210,520		210,520		110,441
Revolving Loans	74,051		74,051		56,321
Loans held for investment, net of unearned income	1,348,515		1,348,515		1,333,982
Year-to-date Current Period Gross Write-offs
2024			0		0
2023			0		0
2022			0		0
2021			0		0
2020			0		0
Prior			35		2,337
Revolving Loans			0		0
Total			35		2,337
Residential real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Loans held for investment, net of unearned income	668,646		668,646		640,437
Year-to-date Current Period Gross Write-offs
Total	56	33	75	33
Residential real estate | One- to four- family first liens
Financing Receivable, Credit Quality Indicator [Line Items]
2024	38,353		38,353		64,429
2023	60,633		60,633		126,684
2022	132,216		132,216		93,541
2021	93,348		93,348		54,813
2020	52,302		52,302		21,665
Prior	102,127		102,127		85,383
Revolving Loans	13,562		13,562		13,283
Loans held for investment, net of unearned income	492,541		492,541		459,798
Year-to-date Current Period Gross Write-offs
2024			0		0
2023			0		0
2022			53		0
2021			22		0
2020			0		0
Prior			0		36
Revolving Loans			0		0
Total			75		36
Residential real estate | One- to four- family first liens | Pass / Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2024					1,156
2023					191
2022					738
2021					165
2020					164
Prior					3,404
Revolving Loans					0
Loans held for investment, net of unearned income					5,818
Residential real estate | One- to four- family first liens | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2024					0
2023					0
2022					0
2021					0
2020					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]
2024	9,492		9,492		23,551
2023	18,965		18,965		30,111
2022	25,723		25,723		18,733
2021	16,604		16,604		7,317
2020	6,943		6,943		2,613
Prior	9,196		9,196		8,504
Revolving Loans	89,182		89,182		89,810
Loans held for investment, net of unearned income	176,105		176,105		180,639
Year-to-date Current Period Gross Write-offs
2024			0		0
2023			0		19
2022			0		0
2021			0		0
2020			0		0
Prior			0		0
Revolving Loans			0		0
Total			0		19
Residential real estate | One- to four- family junior liens | Pass / Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2024	9,492		9,492		23,551
2023	18,965		18,965		29,919
2022	25,328		25,328		18,733
2021	16,535		16,535		7,292
2020	6,921		6,921		2,590
Prior	8,880		8,880		7,867
Revolving Loans	89,182		89,182		89,810
Loans held for investment, net of unearned income	175,303		175,303		179,762
Residential real estate | One- to four- family junior liens | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0		0		0
2023	0		0		192
2022	395		395		0
2021	69		69		25
2020	22		22		23
Prior	316		316		637
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	802		802		877
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
2024	11,129		11,129		26,028
2023	26,834		26,834		14,341
2022	13,652		13,652		10,042
2021	7,707		7,707		4,421
2020	3,154		3,154		1,454
Prior	7,526		7,526		7,352
Revolving Loans	5,762		5,762		4,145
Loans held for investment, net of unearned income	75,764		75,764		67,783
Year-to-date Current Period Gross Write-offs
2024			0		0
2023			338		621
2022			196		30
2021			3		12
2020			1		12
Prior			12		10
Revolving Loans			0		0
Total	260	$ 125	550	$ 273	685
Consumer | Pass / Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2024	11,129		11,129		26,028
2023	26,788		26,788		14,319
2022	13,575		13,575		10,042
2021	7,707		7,707		4,421
2020	3,137		3,137		1,451
Prior	7,526		7,526		7,350
Revolving Loans	5,762		5,762		4,145
Loans held for investment, net of unearned income	75,624		75,624		67,756
Consumer | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0		0		0
2023	46		46		22
2022	77		77		0
2021	0		0		0
2020	17		17		3
Prior	0		0		2
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	140		140		27
Pass
Financing Receivable, Credit Quality Indicator [Line Items]
2024	255,968		255,968		607,768
2023	603,836		603,836		962,918
2022	924,128		924,128		752,137
2021	701,966		701,966		524,570
2020	475,875		475,875		139,536
Prior	443,261		443,261		311,683
Revolving Loans	335,731		335,731		299,882
Loans held for investment, net of unearned income	3,740,765		3,740,765		3,598,494
Pass | Agricultural
Financing Receivable, Credit Quality Indicator [Line Items]
2024	9,931		9,931		11,859
2023	8,394		8,394		12,149
2022	10,678		10,678		8,352
2021	6,426		6,426		2,752
2020	2,177		2,177		689
Prior	1,599		1,599		1,139
Revolving Loans	64,512		64,512		71,680
Loans held for investment, net of unearned income	103,717		103,717		108,620
Pass | Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2024	85,109		85,109		176,021
2023	161,638		161,638		224,924
2022	194,275		194,275		193,011
2021	182,208		182,208		117,326
2020	107,822		107,822		25,555
Prior	125,602		125,602		116,661
Revolving Loans	179,462		179,462		147,690
Loans held for investment, net of unearned income	1,036,116		1,036,116		1,001,188
Pass | Commercial real estate | Construction & development
Financing Receivable, Credit Quality Indicator [Line Items]
2024	51,903		51,903		99,803
2023	148,008		148,008		163,126
2022	112,679		112,679		43,189
2021	27,381		27,381		3,393
2020	3,077		3,077		821
Prior	1,242		1,242		700
Revolving Loans	5,723		5,723		9,552
Loans held for investment, net of unearned income	350,013		350,013		320,584
Pass | Commercial real estate | Farmland
Financing Receivable, Credit Quality Indicator [Line Items]
2024	13,716		13,716		25,666
2023	25,478		25,478		44,907
2022	41,723		41,723		47,068
2021	43,094		43,094		18,863
2020	16,797		16,797		6,587
Prior	16,846		16,846		14,845
Revolving Loans	2,397		2,397		1,642
Loans held for investment, net of unearned income	160,051		160,051		159,578
Pass | Commercial real estate | Multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2024	16,937		16,937		32,077
2023	42,485		42,485		96,969
2022	121,613		121,613		111,032
2021	106,455		106,455		77,532
2020	71,270		71,270		8,701
Prior	21,265		21,265		6,508
Revolving Loans	1,722		1,722		4,208
Loans held for investment, net of unearned income	381,747		381,747		337,027
Pass | Commercial real estate | Commercial real estate-other
Financing Receivable, Credit Quality Indicator [Line Items]
2024	40,075		40,075		199,698
2023	159,183		159,183		295,066
2022	312,547		312,547		256,718
2021	243,668		243,668		250,676
2020	223,127		223,127		77,509
Prior	179,759		179,759		90,170
Revolving Loans	68,353		68,353		51,827
Loans held for investment, net of unearned income	1,226,712		1,226,712		1,221,664
Pass | Residential real estate | One- to four- family first liens | Pass / Performing
Financing Receivable, Credit Quality Indicator [Line Items]
2024	38,297		38,297		62,644
2023	58,650		58,650		125,777
2022	130,613		130,613		92,767
2021	92,734		92,734		54,028
2020	51,605		51,605		19,674
Prior	96,948		96,948		81,660
Revolving Loans	13,562		13,562		13,283
Loans held for investment, net of unearned income	482,409		482,409		449,833
Special mention / watch
Financing Receivable, Credit Quality Indicator [Line Items]
2024	13,374		13,374		11,444
2023	16,687		16,687		11,123
2022	31,090		31,090		10,365
2021	9,067		9,067		33,885
2020	30,384		30,384		14,157
Prior	27,097		27,097		9,059
Revolving Loans	18,554		18,554		22,996
Loans held for investment, net of unearned income	146,253		146,253		113,029
Special mention / watch | Agricultural
Financing Receivable, Credit Quality Indicator [Line Items]
2024	147		147		266
2023	215		215		550
2022	443		443		670
2021	245		245		91
2020	100		100		5
Prior	478		478		522
Revolving Loans	1,365		1,365		3,705
Loans held for investment, net of unearned income	2,993		2,993		5,809
Special mention / watch | Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2024	93		93		2,541
2023	7,736		7,736		416
2022	17,163		17,163		3,209
2021	897		897		3,385
2020	3,055		3,055		193
Prior	5,626		5,626		272
Revolving Loans	10,159		10,159		14,692
Loans held for investment, net of unearned income	44,729		44,729		24,708
Special mention / watch | Commercial real estate | Construction & development
Financing Receivable, Credit Quality Indicator [Line Items]
2024	623		623		1,097
2023	0		0		0
2022	0		0		464
2021	0		0		0
2020	0		0		0
Prior	0		0		0
Revolving Loans	467		467		467
Loans held for investment, net of unearned income	1,090		1,090		2,028
Special mention / watch | Commercial real estate | Farmland
Financing Receivable, Credit Quality Indicator [Line Items]
2024	820		820		1,229
2023	0		0		6,898
2022	5,858		5,858		2,409
2021	3,979		3,979		5,982
2020	5,675		5,675		0
Prior	644		644		965
Revolving Loans	865		865		276
Loans held for investment, net of unearned income	17,841		17,841		17,759
Special mention / watch | Commercial real estate | Multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2024	11,109		11,109		5,318
2023	0		0		1,237
2022	452		452		277
2021	271		271		18,984
2020	16,650		16,650		7,850
Prior	12,333		12,333		4,586
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	40,815		40,815		38,252
Special mention / watch | Commercial real estate | Commercial real estate-other
Financing Receivable, Credit Quality Indicator [Line Items]
2024	526		526		364
2023	8,013		8,013		1,306
2022	6,468		6,468		3,300
2021	3,611		3,611		4,823
2020	4,311		4,311		4,282
Prior	6,261		6,261		2,395
Revolving Loans	5,698		5,698		3,856
Loans held for investment, net of unearned income	34,888		34,888		20,326
Special mention / watch | Residential real estate | One- to four- family first liens
Financing Receivable, Credit Quality Indicator [Line Items]
2024	56		56		629
2023	723		723		716
2022	706		706		36
2021	64		64		620
2020	593		593		1,827
Prior	1,755		1,755		319
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	3,897		3,897		4,147
Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
2024	2,375		2,375		5,260
2023	2,853		2,853		30,310
2022	28,605		28,605		31,417
2021	29,608		29,608		21,416
2020	18,336		18,336		17,839
Prior	64,747		64,747		52,965
Revolving Loans	1,821		1,821		7,795
Loans held for investment, net of unearned income	148,345		148,345		167,002
Substandard | Agricultural
Financing Receivable, Credit Quality Indicator [Line Items]
2024	30		30		709
2023	0		0		193
2022	222		222		302
2021	156		156		208
2020	212		212		0
Prior	213		213		224
Revolving Loans	440		440		2,349
Loans held for investment, net of unearned income	1,273		1,273		3,985
Substandard | Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
2024	468		468		897
2023	654		654		2,921
2022	732		732		2,010
2021	2,952		2,952		561
2020	76		76		8,507
Prior	33,875		33,875		29,432
Revolving Loans	1,381		1,381		4,779
Loans held for investment, net of unearned income	40,138		40,138		49,107
Substandard | Commercial real estate | Construction & development
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0		0		343
2023	312		312		240
2022	231		231		0
2021	0		0		0
2020	0		0		0
Prior	0		0		0
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	543		543		583
Substandard | Commercial real estate | Farmland
Financing Receivable, Credit Quality Indicator [Line Items]
2024	566		566		1,830
2023	384		384		210
2022	382		382		1,542
2021	499		499		1,052
2020	1,183		1,183		926
Prior	2,735		2,735		2,029
Revolving Loans	0		0		29
Loans held for investment, net of unearned income	5,749		5,749		7,618
Substandard | Commercial real estate | Multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0		0		0
2023	0		0		0
2022	0		0		7,572
2021	7,492		7,492		327
2020	0		0		0
Prior	0		0		0
Revolving Loans	0		0		0
Loans held for investment, net of unearned income	7,492		7,492		7,899
Substandard | Commercial real estate | Commercial real estate-other
Financing Receivable, Credit Quality Indicator [Line Items]
2024	1,311		1,311		325
2023	243		243		26,555
2022	26,141		26,141		19,253
2021	17,959		17,959		19,103
2020	16,761		16,761		8,242
Prior	24,500		24,500		17,876
Revolving Loans	0		0		638
Loans held for investment, net of unearned income	86,915		86,915		91,992
Substandard | Residential real estate | One- to four- family first liens
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0		0
2023	1,260		1,260
2022	897		897
2021	550		550
2020	104		104
Prior	3,424		3,424
Revolving Loans	0		0
Loans held for investment, net of unearned income	6,235		6,235
Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0		0		0
2023	0		0		0
2022	0		0		0
2021	0		0		0
2020	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]
2024	0		0		0
2023	0		0		0
2022	0		0		0
2021	0		0		0
2020	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]
2024	0		0		0
2023	0		0		0
2022	0		0		0
2021	0		0		0
2020	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]
2024	0		0		0
2023	0		0		0
2022	0		0		0
2021	0		0		0
2020	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]
2024	0		0		0
2023	0		0		0
2022	0		0		0
2021	0		0		0
2020	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]
2024	0		0		0
2023	0		0		0
2022	0		0		0
2021	0		0		0
2020	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]
2024	0		0		0
2023	0		0		0
2022	0		0		0
2021	0		0		0
2020	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
Financing Receivable, Credit Quality Indicator [Line Items]
2024	0		0
2023	0		0
2022	0		0
2021	0		0
2020	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		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for credit losses written off			$ 1,900
Net charge-offs	$ 500	$ 900	700	$ 1,200
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	55,900	49,800	51,500	49,200	$ 49,200
Allocated to banking office sale	1,943		1,943
Charge-offs	(785)	(1,159)	(1,432)	(1,646)	(4,552)
Recoveries	261	262	719	416
Credit loss expense (benefit)	467	1,497	5,056	2,430
Ending balance	53,900	50,400	53,900	50,400	51,500
Credit loss expense, off balance sheet credit exposure	800	100	900	100
DNVB
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Credit loss expense (benefit)			3,100		3,100
Loans receivable
Financing Receivable, Allowance for Credit Loss [Line Items]
Accrued interest receivable	20,600		20,600
Agricultural
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	648	513	613	923	923
Allocated to banking office sale	0
Charge-offs	0	0	(4)	(1)	(28)
Recoveries		1	355	27
Credit loss expense (benefit)	(246)	103	(562)	(332)
Ending balance	402	617	402	617	613
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	21,882	22,345	21,743	22,855	22,855
Allocated to banking office sale	51		51
Charge-offs	(469)	(189)	(768)	(509)	(1,447)
Recoveries	223	195	269	270
Credit loss expense (benefit)	1,423	570	1,815	305
Ending balance	23,008	22,921	23,008	22,921	21,743
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	26,772	21,833	23,759	20,123	20,123
Allocated to banking office sale	1,795		1,795
Charge-offs	0	(812)	(35)	(830)
Recoveries	6	6	14	11
Credit loss expense (benefit)	(659)	884	2,381	2,607
Ending balance	24,324	21,911	24,324	21,911	23,759
Residential real estate
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	5,014	4,545	4,762	4,678	4,678
Allocated to banking office sale	94		94
Charge-offs	(56)	(33)	(75)	(33)
Recoveries	4	16	13	20
Credit loss expense (benefit)	(209)	(135)	53	(272)
Ending balance	4,659	4,393	4,659	4,393	4,762
Consumer
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	1,584	564	623	621	621
Allocated to banking office sale	3		3
Charge-offs	(260)	(125)	(550)	(273)	(685)
Recoveries	28	44	68	88
Credit loss expense (benefit)	158	75	1,369	122
Ending balance	$ 1,507	$ 558	$ 1,507	$ 558	$ 623

XML

Loans Receivable and the Allowance for Credit Losses - Allowance for Loan Losses Based on Evaluation Method (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment	$ 24,127		$ 29,157
Collectively evaluated for impairment	4,263,105		4,097,790
Loans held for investment, net of unearned income	4,287,232		4,126,947
Allowance for credit losses:
Individually evaluated for impairment	1,819		3,337
Collectively evaluated for impairment	52,081		48,163
Total	53,900	$ 55,900	51,500	$ 50,400	$ 49,800	$ 49,200
Agricultural
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment	219		11
Collectively evaluated for impairment	107,764		118,403
Loans held for investment, net of unearned income	107,983		118,414
Allowance for credit losses:
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	402		613
Total	402	648	613	617	513	923
Commercial and industrial
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment	16,024		17,231
Collectively evaluated for impairment	1,104,959		1,057,772
Loans held for investment, net of unearned income	1,120,983		1,075,003
Allowance for credit losses:
Individually evaluated for impairment	1,671		2,616
Collectively evaluated for impairment	21,337		19,127
Total	23,008	21,882	21,743	22,921	22,345	22,855
Commercial real estate
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment	6,320		10,932
Collectively evaluated for impairment	2,307,536		2,214,378
Loans held for investment, net of unearned income	2,313,856		2,225,310
Allowance for credit losses:
Individually evaluated for impairment	44		705
Collectively evaluated for impairment	24,280		23,054
Total	24,324	26,772	23,759	21,911	21,833	20,123
Residential real estate
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment	1,564		983
Collectively evaluated for impairment	667,082		639,454
Loans held for investment, net of unearned income	668,646		640,437
Allowance for credit losses:
Individually evaluated for impairment	104		16
Collectively evaluated for impairment	4,555		4,746
Total	4,659	5,014	4,762	4,393	4,545	4,678
Consumer
Loans and Leases Receivable Disclosure [Line Items]
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	75,764		67,783
Loans held for investment, net of unearned income	75,764		67,783
Allowance for credit losses:
Individually evaluated for impairment	0		0
Collectively evaluated for impairment	1,507		623
Total	$ 1,507	$ 1,584	$ 623	$ 558	$ 564	$ 621

XML

Loans Receivable and the Allowance for Credit Losses - Primary Type of Collateral (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	$ 4,233,332		$ 4,075,447
ACL Allocation	53,900	$ 55,900	51,500	$ 50,400	$ 49,800	$ 49,200
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	23,961		27,236
Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0		0
Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	166		1,921
Collateral Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	24,127		29,157
ACL Allocation	1,819		3,337
Agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	402	648	613	617	513	923
Agricultural | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	219		11
Agricultural | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0		0
Agricultural | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0		0
Agricultural | Collateral Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	219		11
ACL Allocation	0		0
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	23,008	21,882	21,743	22,921	22,345	22,855
Commercial and industrial | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	16,024		15,991
Commercial and industrial | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0		0
Commercial and industrial | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0		1,240
Commercial and industrial | Collateral Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	16,024		17,231
ACL Allocation	1,671		2,616
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	24,324	26,772	23,759	21,911	21,833	20,123
Commercial real estate | Farmland | Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	3,686		5,403
Commercial real estate | Farmland | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0		0
Commercial real estate | Farmland | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0		0
Commercial real estate | Farmland | Collateral Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	3,686		5,403
ACL Allocation	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	2,468		5,350
Commercial real estate | Commercial real estate-other | Equipment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0		0
Commercial real estate | Commercial real estate-other | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	166		179
Commercial real estate | Commercial real estate-other | Collateral Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	2,634		5,529
ACL Allocation	44		705
Residential real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
ACL Allocation	4,659	$ 5,014	4,762	$ 4,393	$ 4,545	$ 4,678
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	1,290		481
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
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
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	1,290		481
ACL Allocation	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	274		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
Residential real estate | One- to four- family junior liens | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans held for investment, net	0		502
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	274		502
ACL Allocation	$ 104		$ 16

XML

Loans Receivable and the Allowance for Credit Losses - Trouble Debt (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($) modified_loan	Jun. 30, 2023 USD ($) modified_loan	Jun. 30, 2024 USD ($) modified_loan	Jun. 30, 2023 USD ($) modified_loan	Dec. 31, 2023 USD ($)
Financing Receivable, Modified [Line Items]
Principal Receivable	$ 0	$ 0	$ 0	$ 81
Total Class of Financing Receivable
Commitments to lend	$ 5		$ 5		$ 0
Number of modified loans | modified_loan	2	4	8	4
Financing receivable, loans totaling	$ 600	$ 900	$ 900	$ 900
Agricultural
Financing Receivable, Modified [Line Items]
Total Class of Financing Receivable		0.01%		0.01%
Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	$ 0	$ 0	$ 0	$ 63
Total Class of Financing Receivable	0.01%	0.11%	0.04%	0.15%
Commercial real estate | Construction & development
Financing Receivable, Modified [Line Items]
Principal Receivable	$ 0		$ 0
Total Class of Financing Receivable	0.07%		0.07%
Commercial real estate | Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable	$ 0	$ 0	$ 0	$ 0
Total Class of Financing Receivable	0.21%	1.01%	0.21%	1.01%
Commercial real estate | Commercial real estate-other
Financing Receivable, Modified [Line Items]
Principal Receivable	$ 0		$ 0	$ 18
Total Class of Financing Receivable	0.36%	0.01%	0.38%	0.01%
Residential real estate | One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable	$ 0	$ 0	$ 0	$ 0
Total Class of Financing Receivable	0.08%	0.02%	0.13%	0.02%
Residential real estate | One- to four- family junior liens
Financing Receivable, Modified [Line Items]
Principal Receivable			$ 0
Total Class of Financing Receivable			0.08%
Principal Forgiveness
Financing Receivable, Modified [Line Items]
Principal Receivable	$ 0	$ 0	$ 0	$ 0
Principal Forgiveness | Agricultural
Financing Receivable, Modified [Line Items]
Principal Receivable		0		0
Principal Forgiveness | Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Principal Forgiveness | Commercial real estate | Construction & development
Financing Receivable, Modified [Line Items]
Principal Receivable	0		0
Principal Forgiveness | Commercial real estate | Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Principal Forgiveness | Commercial real estate | Commercial real estate-other
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Principal Forgiveness | Residential real estate | One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Principal Forgiveness | Residential real estate | One- to four- family junior liens
Financing Receivable, Modified [Line Items]
Principal Receivable			0
Payment Delay
Financing Receivable, Modified [Line Items]
Principal Receivable	0	445	252	445
Payment Delay | Agricultural
Financing Receivable, Modified [Line Items]
Principal Receivable		15		15
Payment Delay | Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	0	272	0	272
Payment Delay | Commercial real estate | Construction & development
Financing Receivable, Modified [Line Items]
Principal Receivable	0		0
Payment Delay | Commercial real estate | Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Payment Delay | Commercial real estate | Commercial real estate-other
Financing Receivable, Modified [Line Items]
Principal Receivable	0	158	0	158
Payment Delay | Residential real estate | One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	252	0
Payment Delay | Residential real estate | One- to four- family junior liens
Financing Receivable, Modified [Line Items]
Principal Receivable			0
Term Extension
Financing Receivable, Modified [Line Items]
Principal Receivable	5,993	2,655	6,701	2,701
Term Extension | Agricultural
Financing Receivable, Modified [Line Items]
Principal Receivable		0		0
Term Extension | Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	78	732	453	778
Term Extension | Commercial real estate | Construction & development
Financing Receivable, Modified [Line Items]
Principal Receivable	231		231
Term Extension | Commercial real estate | Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable	381	1,843	381	1,843
Term Extension | Commercial real estate | Commercial real estate-other
Financing Receivable, Modified [Line Items]
Principal Receivable	4,910	0	5,107	0
Term Extension | Residential real estate | One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable	393	80	393	80
Term Extension | Residential real estate | One- to four- family junior liens
Financing Receivable, Modified [Line Items]
Principal Receivable			136
Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Interest Rate Reduction | Agricultural
Financing Receivable, Modified [Line Items]
Principal Receivable		0		0
Interest Rate Reduction | Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Interest Rate Reduction | Commercial real estate | Construction & development
Financing Receivable, Modified [Line Items]
Principal Receivable	0		0
Interest Rate Reduction | Commercial real estate | Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Interest Rate Reduction | Commercial real estate | Commercial real estate-other
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Interest Rate Reduction | Residential real estate | One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Interest Rate Reduction | Residential real estate | One- to four- family junior liens
Financing Receivable, Modified [Line Items]
Principal Receivable			0
Term Extension & Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	112
Term Extension & Interest Rate Reduction | Agricultural
Financing Receivable, Modified [Line Items]
Principal Receivable		0		0
Term Extension & Interest Rate Reduction | Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	112
Term Extension & Interest Rate Reduction | Commercial real estate | Construction & development
Financing Receivable, Modified [Line Items]
Principal Receivable	0		0
Term Extension & Interest Rate Reduction | Commercial real estate | Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Term Extension & Interest Rate Reduction | Commercial real estate | Commercial real estate-other
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Term Extension & Interest Rate Reduction | Residential real estate | One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Term Extension & Interest Rate Reduction | Residential real estate | One- to four- family junior liens
Financing Receivable, Modified [Line Items]
Principal Receivable			0
Principal Forgiveness & Term Extension
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	305
Principal Forgiveness & Term Extension | Agricultural
Financing Receivable, Modified [Line Items]
Principal Receivable		0		0
Principal Forgiveness & Term Extension | Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	305
Principal Forgiveness & Term Extension | Commercial real estate | Construction & development
Financing Receivable, Modified [Line Items]
Principal Receivable	0		0
Principal Forgiveness & Term Extension | Commercial real estate | Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Principal Forgiveness & Term Extension | Commercial real estate | Commercial real estate-other
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Principal Forgiveness & Term Extension | Residential real estate | One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Principal Forgiveness & Term Extension | Residential real estate | One- to four- family junior liens
Financing Receivable, Modified [Line Items]
Principal Receivable			0
Principal Forgiveness, Term Extension, & Interest Rate Reduction
Financing Receivable, Modified [Line Items]
Principal Receivable	0	192	0	192
Principal Forgiveness, Term Extension, & Interest Rate Reduction | Agricultural
Financing Receivable, Modified [Line Items]
Principal Receivable		0		0
Principal Forgiveness, Term Extension, & Interest Rate Reduction | Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	0	192	0	192
Principal Forgiveness, Term Extension, & Interest Rate Reduction | Commercial real estate | Construction & development
Financing Receivable, Modified [Line Items]
Principal Receivable	0		0
Principal Forgiveness, Term Extension, & Interest Rate Reduction | Commercial real estate | Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Principal Forgiveness, Term Extension, & Interest Rate Reduction | Commercial real estate | Commercial real estate-other
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Principal Forgiveness, Term Extension, & Interest Rate Reduction | Residential real estate | One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Principal Forgiveness, Term Extension, & Interest Rate Reduction | Residential real estate | One- to four- family junior liens
Financing Receivable, Modified [Line Items]
Principal Receivable			0
Payment Delay & Term Extension
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Payment Delay & Term Extension | Agricultural
Financing Receivable, Modified [Line Items]
Principal Receivable		0		0
Payment Delay & Term Extension | Commercial and industrial
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Payment Delay & Term Extension | Commercial real estate | Construction & development
Financing Receivable, Modified [Line Items]
Principal Receivable	0		0
Payment Delay & Term Extension | Commercial real estate | Farmland
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Payment Delay & Term Extension | Commercial real estate | Commercial real estate-other
Financing Receivable, Modified [Line Items]
Principal Receivable	0	0	0	0
Payment Delay & Term Extension | Residential real estate | One- to four- family first liens
Financing Receivable, Modified [Line Items]
Principal Receivable	$ 0	$ 0	0	$ 0
Payment Delay & Term Extension | Residential real estate | One- to four- family junior liens
Financing Receivable, Modified [Line Items]
Principal Receivable			$ 0

XML

Loans Receivable and the Allowance for Credit Losses - Aging Analysis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	$ 13,254	$ 3,754
Agricultural
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months		15
Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	522	1,658
Commercial real estate | Construction & development
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	543
Commercial real estate | Farmland
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	733	1,843
Commercial real estate | Commercial real estate-other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	10,662	158
Residential real estate | One- to four- family first liens
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	645	80
Residential real estate | One- to four- family junior liens
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	149
Current
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	12,671	3,049
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	522	968
Current | Commercial real estate | Construction & development
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	312
Current | Commercial real estate | Farmland
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	381	1,843
Current | Commercial real estate | Commercial real estate-other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	10,662	158
Current | Residential real estate | One- to four- family first liens
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	645	80
Current | Residential real estate | One- to four- family junior liens
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	149
30 - 59 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0	15
30 - 59 Days Past Due | Agricultural
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months		15
30 - 59 Days Past Due | Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0	0
30 - 59 Days Past Due | Commercial real estate | Construction & development
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0
30 - 59 Days Past Due | Commercial real estate | Farmland
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0	0
30 - 59 Days Past Due | Commercial real estate | Commercial real estate-other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0	0
30 - 59 Days Past Due | Residential real estate | One- to four- family first liens
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0	0
30 - 59 Days Past Due | Residential real estate | One- to four- family junior liens
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0
60 - 89 Days Past Due
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	231	690
60 - 89 Days Past Due | Agricultural
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months		0
60 - 89 Days Past Due | Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0	690
60 - 89 Days Past Due | Commercial real estate | Construction & development
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	231
60 - 89 Days Past Due | Commercial real estate | Farmland
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0	0
60 - 89 Days Past Due | Commercial real estate | Commercial real estate-other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0	0
60 - 89 Days Past Due | Residential real estate | One- to four- family first liens
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0	0
60 - 89 Days Past Due | Residential real estate | One- to four- family junior 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	352	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	0
90 Days or More Past Due | Commercial real estate | Construction & development
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 | Farmland
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	352	0
90 Days or More Past Due | Commercial real estate | Commercial real estate-other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0	0
90 Days or More Past Due | Residential real estate | One- to four- family first liens
Financing Receivable, Troubled Debt Restructuring [Line Items]
Performance of loans modified in last twelve months	0	$ 0
90 Days or More Past Due | Residential real estate | One- to four- family junior 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		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal Forgiveness	$ 0	$ 0	$ 0	$ 81
Weighted Average Interest Rate Reduction	0.00%	0.00%	0.00%	1.25%
Weighted Average Term Extension (Months)	20 years 4 months 24 days	2 years 10 months 24 days	21 years 1 month 6 days	4 years 1 month 6 days
Commercial and industrial
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal Forgiveness	$ 0	$ 0	$ 0	$ 63
Weighted Average Interest Rate Reduction	0.00%	0.00%	0.00%	1.25%
Weighted Average Term Extension (Months)	26 years	6 years 6 months	8 years 1 month 6 days	8 years 3 months 18 days
Commercial real estate | Construction & development
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal Forgiveness	$ 0		$ 0
Weighted Average Interest Rate Reduction	0.00%		0.00%
Weighted Average Term Extension (Months)	9 months 18 days		9 months 18 days
Commercial real estate | Farmland
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal Forgiveness	$ 0	$ 0	$ 0	$ 0
Weighted Average Interest Rate Reduction	0.00%	0.00%	0.00%	0.00%
Weighted Average Term Extension (Months)	5 years 4 months 24 days	10 months 24 days	5 years 4 months 24 days	10 months 24 days
Commercial real estate | Commercial real estate-other
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal Forgiveness	$ 0		$ 0	$ 18
Weighted Average Interest Rate Reduction	0.00%		0.00%	7.00%
Weighted Average Term Extension (Months)	7 years 1 month 6 days		7 years 1 month 6 days	2 years 6 months
Residential real estate | One- to four- family first liens
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal Forgiveness	$ 0	$ 0	$ 0	$ 0
Weighted Average Interest Rate Reduction	0.00%	0.00%	0.00%	0.00%
Weighted Average Term Extension (Months)	210 years 1 month 6 days	3 years 10 months 24 days	210 years 1 month 6 days	3 years 10 months 24 days
Residential real estate | One- to four- family junior liens
Financing Receivable, Troubled Debt Restructuring [Line Items]
Principal Forgiveness			$ 0
Weighted Average Interest Rate Reduction			0.00%
Weighted Average Term Extension (Months)			122 years

XML

Derivatives, Hedging Activities and Balance Sheet Offsetting - Derivatives and Hedging Activities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Derivatives, Fair Value [Line Items]
Derivative assets, fair value	$ 28,691	$ 25,093
Derivative liabilities, fair value	23,671	24,057
Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative, notional amount	400,111	391,101
Derivative assets, fair value	5,402	3,011
Derivative liabilities, fair value	436	1,987
Designated as Hedging Instrument | Interest rate swaps - loans
Derivatives, Fair Value [Line Items]
Derivative, notional amount	50,111	41,101
Derivative assets, fair value	2,577	2,071
Derivative liabilities, fair value	416	902
Designated as Hedging Instrument | Interest rate swaps - securities
Derivatives, Fair Value [Line Items]
Derivative, notional amount	150,000	150,000
Derivative assets, fair value	174	0
Derivative liabilities, fair value	20	821
Designated as Hedging Instrument | Interest rate swaps | Cash flow hedges
Derivatives, Fair Value [Line Items]
Derivative, notional amount	200,000	200,000
Derivative assets, fair value	2,651	940
Derivative liabilities, fair value	0	264
Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative, notional amount	705,599	486,107
Derivative assets, fair value	23,289	22,082
Derivative liabilities, fair value	23,235	22,070
Not Designated as Hedging Instrument | Interest rate swaps
Derivatives, Fair Value [Line Items]
Derivative, notional amount	614,745	432,648
Derivative assets, fair value	23,221	22,028
Derivative liabilities, fair value	23,232	22,038
Not Designated as Hedging Instrument | RPAs - protection purchased | RPAs - protection sold
Derivatives, Fair Value [Line Items]
Derivative, notional amount	53,133	18,778
Derivative assets, fair value	6	4
Derivative liabilities, fair value	0	0
Not Designated as Hedging Instrument | RPAs - protection purchased | RPAs - protection purchased
Derivatives, Fair Value [Line Items]
Derivative, notional amount	30,633	31,145
Derivative assets, fair value	0	0
Derivative liabilities, fair value	3	9
Not Designated as Hedging Instrument | Interest rate lock commitments
Derivatives, Fair Value [Line Items]
Derivative, notional amount	3,537	1,461
Derivative assets, fair value	49	50
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	3,551	2,075
Derivative assets, fair value	13	0
Derivative liabilities, fair value	$ 0	$ 23

XML

Derivatives, Hedging Activities and Balance Sheet Offsetting - Additional Information (Details) $ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative instrument, estimated gain reclassified from AOCI into income	$ 2.2
Fair value of derivatives in a net liability position, including accrued interest	$ 5.6

XML

Derivatives, Hedging Activities and Balance Sheet Offsetting - Effect of Cashflow Hedging on AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Unrealized net gains in cash flow hedging instruments	$ 778	$ 3,321	$ 3,550	$ 3,459
Location of Gain (Loss) Reclassified from AOCI into Income	787	238	1,575	238
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	778	3,321	3,550	3,459
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	$ 787	$ 238	$ 1,575	$ 238

XML

Derivatives, Hedging Activities and Balance Sheet Offsetting - Schedule of Impacts on Statements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Derivative Instruments, Gain (Loss) [Line Items]
Interest Income	$ 36,347	$ 36,962	$ 71,078	$ 77,038
Designated as Hedging Instrument | Interest rate swaps | Fair value hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Interest Income	483	190	891	349
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	(233)	(27)	(997)	535
Derivative designated as hedging instruments	507	658	1,530	255
Designated as Hedging Instrument | Interest rate swaps | Interest Income | Fair value hedges: | Interest contracts - securities:
Derivative Instruments, Gain (Loss) [Line Items]
Hedged items	(103)	0	(986)	0
Derivative designated as hedging instruments	284	0	1,343	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

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	Jun. 30, 2024 USD ($)
Loans
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Carrying Amount of the Hedged Assets	$ 47,070
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset	(3,292)
Securities
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Carrying Amount of the Hedged Assets	149,582
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset	$ (418)

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		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging, gain (loss)	$ (5)	$ 17	$ 43	$ 150
Interest rate swaps | Other income
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging, gain (loss)	0	0	1	0
RPAs - protection purchased | Other income
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging, gain (loss)	2	0	7	69
Interest rate lock commitments | Loan revenue
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging, gain (loss)	(28)	(32)	(1)	62
Interest rate forward loan sales contracts | Loan revenue
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging, gain (loss)	$ 21	$ 49	$ 36	$ 19

XML

Derivatives, Hedging Activities and Balance Sheet Offsetting - Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Asset Derivatives
Gross Amounts Recognized	$ 28,691	$ 25,093
Gross Amounts Offset in the Balance Sheet	0	0
Net Amounts presented in the Balance Sheet	28,691	25,093
Financial Instruments	0	0
Cash Collateral Received / Paid	17,444	15,549
Net Assets /Liabilities	11,247	9,544
Liability Derivatives
Gross Amounts Recognized	23,671	24,057
Gross Amounts Offset in the Balance Sheet	0	0
Net Amounts presented in the Balance Sheet	23,671	24,057
Financial Instruments	0	0
Cash Collateral Received / Paid	1,230	2,420
Net Assets /Liabilities	$ 22,441	$ 21,637

XML

Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Goodwill [Roll Forward]
Goodwill, beginning of period	$ 62,477	$ 62,477
Established in acquisition	8,641	0
Allocated to divestiture	(1,730)	0
Total goodwill, end of period	$ 69,388	$ 62,477

XML

Goodwill and Intangible Assets - Additional Information (Details) $ in Thousands	Jan. 31, 2024 USD ($)
Core deposit intangible
Goodwill [Line Items]
Amortized over its estimated useful life	10 years
DNVB
Goodwill [Line Items]
Core deposit intangible	$ 7,100

XML

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 73,310	$ 66,210
Accumulated Amortization	(52,411)	(49,181)
Net Carrying Amount	20,899	17,029
Indefinite-lived trade name intangible	7,040	7,040
Other intangible assets, net	27,939	24,069
Core deposit intangible
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	65,345	58,245
Accumulated Amortization	(44,562)	(41,499)
Net Carrying Amount	20,783	16,746
Customer relationship intangible
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	5,265	5,265
Accumulated Amortization	(5,160)	(5,008)
Net Carrying Amount	105	257
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,700	2,700
Accumulated Amortization	(2,689)	(2,674)
Net Carrying Amount	$ 11	$ 26

XML

Goodwill and Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
2024	$ 2,922
2025	4,944
2026	3,840
2027	2,757
2028	2,110
Thereafter	4,326
Net Carrying Amount	20,899	$ 17,029
Core deposit intangible
Finite-Lived Intangible Assets [Line Items]
2024	2,826
2025	4,924
2026	3,840
2027	2,757
2028	2,110
Thereafter	4,326
Net Carrying Amount	20,783	16,746
Customer relationship intangible
Finite-Lived Intangible Assets [Line Items]
2024	87
2025	18
2026	0
2027	0
2028	0
Thereafter	0
Net Carrying Amount	105	257
Other
Finite-Lived Intangible Assets [Line Items]
2024	9
2025	2
2026	0
2027	0
2028	0
Thereafter	0
Net Carrying Amount	$ 11	$ 26

XML

Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Other Assets [Abstract]
Bank-owned life insurance	$ 99,367	$ 98,039
Interest receivable	30,202	29,768
FHLB stock	5,096	5,806
Mortgage servicing rights	13,094	13,333
Operating lease right-of-use assets, net	1,784	2,337
Federal and state income taxes, current	0	1,556
Federal and state income taxes, deferred	28,577	31,218
Derivative assets	28,691	25,093
Other receivables/assets	17,810	15,630
Other assets	$ 224,621	$ 222,780

XML

Deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Deposits [Abstract]
Noninterest bearing deposits	$ 882,472	$ 897,053
Interest checking deposits	1,284,243	1,320,435
Money market deposits	1,043,376	1,105,493
Savings deposits	745,639	650,655
Time deposits of $250 and under	999,301	973,253
Time deposits over $250	457,388	448,784
Total deposits	5,412,419	5,395,673
Domestic time deposit, brokered	24,500	15,200
Domestic non-time deposit, brokered	114,700	128,000
Noninterest-bearing reciprocal deposits	52,000	58,000
Brokered deposit	196,000	221,000
Deposits of government entities	$ 227,900	$ 183,400

XML

Short-Term Borrowings (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Short-term Debt [Line Items]
Weighted Average Rate	4.72%	4.78%
Short-term borrowings	$ 414,684,000	$ 300,264,000
Debt securities available for sale	771,034,000	795,134,000
Asset Pledged as Collateral without Right
Short-term Debt [Line Items]
Debt securities available for sale	$ 1,160,000,000	$ 1,160,000,000
Securities sold under agreements to repurchase
Short-term Debt [Line Items]
Weighted Average Rate	0.67%	0.72%
Short-term borrowings	$ 5,684,000	$ 5,064,000
Federal Home Loan Bank advances
Short-term Debt [Line Items]
Weighted Average Rate	5.52%	5.64%
Short-term borrowings	$ 4,000,000	$ 10,200,000
Federal Reserve Bank borrowings
Short-term Debt [Line Items]
Weighted Average Rate	4.77%	4.82%
Short-term borrowings	$ 405,000,000	$ 285,000,000
Federal funds purchased
Short-term Debt [Line Items]
Short-term borrowings	0	0
Unsecured line of credit, maximum borrowing capacity	135,000,000.0
Federal Reserve Bank advances | Federal Reserve
Short-term Debt [Line Items]
Short-term borrowings	0	0
Financing capacity	413,500,000	428,800,000
Federal Reserve Bank advances | Bank Term Funding Loan
Short-term Debt [Line Items]
Short-term borrowings	405,000,000.0	285,000,000.0
Federal Reserve Bank advances | Asset Pledged as Collateral without Right | Municipal Securities Loan
Short-term Debt [Line Items]
Debt securities available for sale	771,300,000	797,600,000
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%
Debt instrument, basis spread on variable rate	1.55%

XML

Long-Term Debt - Junior Subordinated Notes (Details) - Junior subordinated notes - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Debt instrument, face amount	$ 44,847
Debt instrument, book value	$ 42,382	$ 42,293
Stated maturity date	5 years
ATBancorp Statutory Trust I
Debt Instrument [Line Items]
Debt instrument, face amount	$ 7,732
Debt instrument, book value	$ 6,992	$ 6,970
Interest rate	7.28%	7.33%
ATBancorp Statutory Trust I | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.68%
ATBancorp Statutory Trust II
Debt Instrument [Line Items]
Debt instrument, face amount	$ 12,372
Debt instrument, book value	$ 11,068	$ 11,034
Interest rate	7.25%	7.30%
ATBancorp Statutory Trust II | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	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
Debt instrument, book value	$ 1,875	$ 1,861
Interest rate	7.76%	7.77%
Barron Investment Capital Trust I | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2.15%
Central Bancshares Capital Trust II
Debt Instrument [Line Items]
Debt instrument, face amount	$ 7,217
Debt instrument, book value	$ 6,983	$ 6,964
Interest rate	9.10%	9.15%
Central Bancshares Capital Trust II | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	3.50%
MidWestOne Statutory Trust II
Debt Instrument [Line Items]
Debt instrument, face amount	$ 15,464
Debt instrument, book value	$ 15,464	$ 15,464
Interest rate	7.19%	7.24%
MidWestOne Statutory Trust II | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.59%

XML

Long-Term Debt - Subordinated Debentures (Details) - Subordinated debt - USD ($) $ in Thousands		6 Months Ended
	Jul. 28, 2020	Jun. 30, 2024	Dec. 31, 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
Long-term debt		$ 64,200	$ 64,100
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	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023	Jun. 07, 2022
Debt Instrument [Line Items]
Weighted Average Rate	6.86%	5.56%
Balance	$ 8,254	$ 16,866
Unsecured line of credit, maximum borrowing capacity			$ 35,000
FHLB borrowings due in 2024	$ 250
Finance lease payable
Debt Instrument [Line Items]
Weighted Average Rate	8.89%	8.89%
Balance	$ 504	$ 604
FHLB borrowings
Debt Instrument [Line Items]
Weighted Average Rate	2.23%	3.11%
Balance	$ 250	$ 6,262
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%	6.89%
Balance	$ 7,500	$ 10,000
Debt instrument, basis spread on variable rate	1.55%

XML

Earnings per Share - Basic And Diluted Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Basic Earnings Per Share:
Net income	$ 15,819	$ 7,594	$ 19,088	$ 8,991
Weighted average shares outstanding (in shares)	15,763,414	15,680,386	15,743,056	15,665,103
Basic earnings per common share (in dollars per share)	$ 1.00	$ 0.48	$ 1.21	$ 0.57
Diluted Earnings Per Share:
Net income	$ 15,819	$ 7,594	$ 19,088	$ 8,991
Weighted average shares outstanding, including all dilutive potential shares (in shares)	15,780,935	15,689,314	15,775,110	15,687,729
Diluted earnings per common share (in dollars per share)	$ 1.00	$ 0.48	$ 1.21	$ 0.57

XML

Regulatory Capital Requirements and Restrictions on Subsidiary Cash (Details)	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Cash reserve deposit required and made	$ 0	$ 0
Capital	$ 675,817,000	$ 668,748,000
Capital to risk weighted assets	0.1262	0.1253
Capital required for capital adequacy	$ 562,159,000	$ 560,596,000
Capital required for capital adequacy to risk weighted assets	0.1050	0.1050
Tier one risk based capital	$ 554,283,000	$ 554,177,000
Tier one risk based capital to risk weighted assets	0.1035	0.1038
Tier one risk based capital required for capital adequacy	$ 455,081,000	$ 453,816,000
Tier one risk based capital required for capital adequacy to risk weighted assets	0.0850	0.0850
Common equity tier one capital	$ 511,901,000	$ 511,884,000
Common equity tier one capital to risk weighted assets	9.56%	9.59%
Common equity tier one capital required for capital adequacy	$ 374,773,000	$ 373,731,000
Common equity tier one capital required for capital adequacy to risk weighted assets	7.00%	7.00%
Tier one leverage capital	$ 554,283,000	$ 554,177,000
Tier one leverage capital to average assets	0.0829	0.0858
Tier one leverage capital required for capital adequacy	$ 267,327,000	$ 258,487,000
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	$ 673,406,000	$ 656,027,000
Capital to risk weighted assets	0.1261	0.1249
Capital required for capital adequacy	$ 560,759,000	$ 551,658,000
Capital required for capital adequacy to risk weighted assets	0.1050	0.1050
Capital required to be well capitalized	$ 534,056,000	$ 525,388,000
Capital required to be well capitalized to risk weighted assets	0.1000	0.1000
Tier one risk based capital	$ 616,872,000	$ 606,456,000
Tier one risk based capital to risk weighted assets	0.1155	0.1154
Tier one risk based capital required for capital adequacy	$ 453,948,000	$ 446,580,000
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	$ 427,245,000	$ 420,310,000
Tier one risk based capital required to be well capitalized to risk weighted assets	0.0800	0.0800
Common equity tier one capital	$ 616,872,000	$ 606,456,000
Common equity tier one capital to risk weighted assets	11.55%	11.54%
Common equity tier one capital required for capital adequacy	$ 373,839,000	$ 367,772,000
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	$ 347,137,000	$ 341,502,000
Common equity tier one risk based capital required to be well capitalized to risk weighted assets	6.50%	6.50%
Tier one leverage capital	$ 616,872,000	$ 606,456,000
Tier one leverage capital to average assets	0.0924	0.0939
Tier one leverage capital required for capital adequacy	$ 267,151,000	$ 258,339,000
Tier one leverage capital required for capital adequacy to average assets	0.0400	0.0400
Tier one leverage capital required to be well capitalized	$ 333,939,000	$ 322,924,000
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	Jun. 30, 2024	Dec. 31, 2023
Other Commitments [Line Items]
Total	$ 1,203,454	$ 1,211,841
Commitments to sell loans
Other Commitments [Line Items]
Total	2,850	1,045
Commitments to extend credit
Other Commitments [Line Items]
Total	1,194,005	1,203,001
Standby letters of credit
Other Commitments [Line Items]
Total	$ 6,599	$ 7,795

XML

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Concentration Risk [Line Items]
Off-balance sheet, credit loss, liability	$ 5.5		$ 5.5		$ 4.6
Credit loss expense, off balance sheet credit loss expense (benefit)	$ 0.8	$ 0.1	$ 0.9	$ 0.1
Credit Concentration Risk | Loans Concentration | Agricultural Related Loan Financing Receivable
Concentration Risk [Line Items]
Concentration risk, percentage			7.00%
Credit Concentration Risk | Loans Concentration | Commercial real estate
Concentration Risk [Line Items]
Concentration risk, percentage			65.00%
Credit Concentration Risk | Investment Securities | State and political subdivisions | IOWA
Concentration Risk [Line Items]
Concentration risk, percentage			12.00%
Credit Concentration Risk | Investment Securities | State and political subdivisions | CALIFORNIA
Concentration Risk [Line Items]
Concentration risk, percentage			12.00%
Credit Concentration Risk | Investment Securities | State and political subdivisions | MINNESOTA
Concentration Risk [Line Items]
Concentration risk, percentage			10.00%

XML

Fair Value of Financial Instruments and Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	$ 771,034	$ 795,134
Derivative assets	28,691	25,093
Mortgage servicing rights	13,094	13,333
Derivative liabilities	23,671	24,057
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	0	0
Derivative assets	0	0
Derivative liabilities	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	771,034	795,134
Derivative assets	28,642	25,043
Derivative liabilities	23,671	24,057
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	0	0
Derivative assets	49	50
Derivative liabilities	0	0
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	250
State and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	113,902	130,139
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	5,096	5,311
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	426,491	440,051
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Derivative assets	28,691	25,093
Mortgage servicing rights	13,094	13,333
Derivative liabilities	23,671	24,057
Recurring | Collateralized loan obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	52,667	50,437
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	0
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Derivative assets	28,642	25,043
Mortgage servicing rights	13,094	13,333
Derivative liabilities	23,671	24,057
Recurring | Level 2 | Collateralized loan obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	52,667	50,437
Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Derivative assets	49	50
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	0
Recurring | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	250
Recurring | U.S. Treasury securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	0
Recurring | U.S. Treasury securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt securities available for sale	250
Recurring | U.S. Treasury securities | 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	113,902	130,139
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	113,902	130,139
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	5,096	5,311
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	5,096	5,311
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	172,628	169,196
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	172,628	169,196
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	426,491	440,051
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	426,491	440,051
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	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets, fair value	$ 28,691	$ 25,093
Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets, fair value	28,691	25,093
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets, fair value	49	50
Level 3 | Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets, fair value	49	50
Interest rate lock commitments
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Derivative assets, fair value	$ 49	$ 50
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	0.60
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	0.86

XML

Fair Value of Financial Instruments and Fair Value Measurements - Measured on a Nonrecurring Basis (Details) $ in Thousands	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Foreclosed assets, net	$ 6,053	$ 3,929
Nonrecurring | Collateral dependent individually analyzed loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Collateral dependent individually analyzed loans	2,409	6,524
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	$ 2,409	6,524
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	0.08
Nonrecurring | Collateral dependent individually analyzed loans | Level 3 | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Measurement input	0.05
Nonrecurring | Foreclosed assets, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Foreclosed assets, net	$ 6,053	3,929
Nonrecurring | Foreclosed assets, net | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Foreclosed assets, net	0	0
Nonrecurring | Foreclosed assets, net | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Foreclosed assets, net	0	0
Nonrecurring | Foreclosed assets, net | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Foreclosed assets, net	$ 6,053	$ 3,929
Nonrecurring | Foreclosed assets, net | Level 3 | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Measurement input	0.07
Nonrecurring | Foreclosed assets, net | Level 3 | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Measurement input	0.19
Nonrecurring | Foreclosed assets, net | Level 3 | Weighted Average
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Measurement input	0.14

XML

Fair Value of Financial Instruments and Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Financial assets:
Debt securities available for sale	$ 771,034	$ 795,134
Debt securities held to maturity	1,053,080	1,075,190
Interest receivable	30,202	29,768
FHLB stock	5,096	5,806
Derivative assets	28,691	25,093
Financial liabilities:
Interest bearing deposits	1,284,243	1,320,435
Short-term borrowings	414,684	300,264
Finance leases payable	504	604
Derivative liabilities	23,671	24,057
Carrying Amount
Financial assets:
Cash and cash equivalents	101,568	81,727
Debt securities available for sale	771,034	795,134
Debt securities held to maturity	1,053,080	1,075,190
Loans held for sale	2,850	1,045
Loans held for investment, net	4,233,332	4,075,447
Interest receivable	30,202	29,768
FHLB stock	5,096	5,806
Derivative assets	28,691	25,093
Financial liabilities:
Noninterest bearing deposits	882,472	897,053
Interest bearing deposits	4,529,947	4,498,620
Short-term borrowings	414,684	300,264
Finance leases payable	504	604
FHLB borrowings	250	6,262
Junior subordinated notes issued to capital trusts	42,382	42,293
Subordinated debentures	64,203	64,137
Other long-term debt	7,500	10,000
Derivative liabilities	23,671	24,057
Estimated Fair Value
Financial assets:
Cash and cash equivalents	101,568	81,727
Debt securities available for sale	771,034	795,134
Debt securities held to maturity	857,372	895,263
Loans held for sale	2,898	1,083
Loans held for investment, net	4,112,203	3,953,368
Interest receivable	30,202	29,768
FHLB stock	5,096	5,806
Derivative assets	28,691	25,093
Financial liabilities:
Noninterest bearing deposits	882,472	897,053
Interest bearing deposits	4,507,277	4,489,322
Short-term borrowings	414,684	300,264
Finance leases payable	504	604
FHLB borrowings	236	6,199
Junior subordinated notes issued to capital trusts	38,065	37,938
Subordinated debentures	61,589	61,940
Other long-term debt	7,500	10,000
Derivative liabilities	23,671	24,057
Level 1
Financial assets:
Cash and cash equivalents	101,568	81,727
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	882,472	897,053
Interest bearing deposits	3,073,258	3,076,582
Short-term borrowings	414,684	300,264
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
Financial assets:
Cash and cash equivalents	0	0
Debt securities available for sale	771,034	795,134
Debt securities held to maturity	857,372	895,263
Loans held for sale	2,898	1,083
Loans held for investment, net	0	0
Interest receivable	30,202	29,768
FHLB stock	5,096	5,806
Derivative assets	28,642	25,043
Financial liabilities:
Noninterest bearing deposits	0	0
Interest bearing deposits	1,434,019	1,412,740
Short-term borrowings	0	0
Finance leases payable	504	604
FHLB borrowings	236	6,199
Junior subordinated notes issued to capital trusts	38,065	37,938
Subordinated debentures	61,589	61,940
Other long-term debt	7,500	10,000
Derivative liabilities	23,671	24,057
Level 3
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	4,112,203	3,953,368
Interest receivable	0	0
FHLB stock	0	0
Derivative assets	49	50
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	Jun. 30, 2024 USD ($) lease	Dec. 31, 2023 USD ($)
Leases [Abstract]
Number of leases | lease	1
Lease Right of Use Assets [Abstract]
Operating lease right-of-use assets	$ 1,784	$ 2,337
Finance lease right-of-use asset	207	255
Total right-of-use assets	1,991	2,592
Lease Liabilities [Abstract]
Operating lease liability	2,427	3,078
Finance lease liability	504	604
Total lease liabilities	$ 2,931	$ 3,682
Weighted-average remaining lease term:
Operating leases	11 years 10 months 9 days	10 years 2 months 12 days
Finance lease	2 years 2 months 1 day	2 years 8 months 1 day
Weighted-average discount rate:
Operating leases	4.79%	4.43%
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		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Operating lease cost	$ 233	$ 296	$ 621	$ 588
Variable lease cost	7	4	14	11
Interest on lease liabilities	11	15	24	32
Amortization of right-of-use assets	24	24	48	48
Net lease cost	275	339	707	679
Operating cash flows from operating leases	694	592	1,516	1,197
Operating cash flows from finance lease	11	15	24	32
Finance cash flows from finance lease	51	45	100	89
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 39	$ 0	$ 195	$ 311

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Leases - Maturity Schedule (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Finance Leases
December 31, 2024	$ 126
December 31, 2025	254
December 31, 2026	172
December 31, 2027	0
December 31, 2028	0
Thereafter	0
Total undiscounted lease payment	552
Amounts representing interest	(48)
Finance lease liability	504	$ 604
Operating Leases
December 31, 2024	333
December 31, 2025	559
December 31, 2026	447
December 31, 2027	302
December 31, 2028	138
Thereafter	1,600
Total undiscounted lease payment	3,379
Amounts representing interest	(952)
Operating lease liability	$ 2,427	$ 3,078

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Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 528,040	$ 500,650	$ 524,378	$ 492,793
Other comprehensive (loss) income before reclassifications	3,204	(3,641)	7,256	(3,317)
Amounts reclassified from AOCI	(535)	(178)	(492)	9,660
Other comprehensive income (loss), net of tax	2,669	(3,819)	6,764	6,343
Ending balance	543,286	501,341	543,286	501,341
AOCI Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(60,804)	(78,885)	(64,899)	(89,047)
Other comprehensive income (loss), net of tax	2,669	(3,819)	6,764	6,343
Ending balance	(58,135)	(82,704)	(58,135)	(82,704)
Unrealized Gain (Loss) from AFS Debt Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(67,676)	(82,227)	(69,915)	(91,852)
Other comprehensive (loss) income before reclassifications	2,258	(6,571)	3,865	(6,784)
Amounts reclassified from AOCI	53	0	685	9,838
Other comprehensive income (loss), net of tax	2,311	(6,571)	4,550	3,054
Ending balance	(65,365)	(88,798)	(65,365)	(88,798)
Reclassification of AFS Debt Securities to HTM
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	4,885	3,239	4,511	2,805
Other comprehensive (loss) income before reclassifications	365	449	739	883
Amounts reclassified from AOCI	0	0	0	0
Other comprehensive income (loss), net of tax	365	449	739	883
Ending balance	5,250	3,688	5,250	3,688
Unrealized Gain (Loss) from Cash Flow Hedging Instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	1,987	103	505	0
Other comprehensive (loss) income before reclassifications	581	2,481	2,652	2,584
Amounts reclassified from AOCI	(588)	(178)	(1,177)	(178)
Other comprehensive income (loss), net of tax	(7)	2,303	1,475	2,406
Ending balance	$ 1,980	$ 2,406	$ 1,980	$ 2,406

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Accumulated Other Comprehensive Income (Loss) - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Investment securities gains (losses), net	$ 33	$ (2)	$ 69	$ (13,172)
Interest income	72,776	61,350	142,311	120,655
Income tax (expense) benefit	(5,054)	(1,598)	(6,012)	(1,979)
Net income	15,819	7,594	19,088	8,991
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest
Accumulated Other Comprehensive Income (Loss) [Line Items]
Investment securities gains (losses), net	(33)	2	(69)	13,172
Interest income	104	0	986	0
Interest expense	(787)	(238)	(1,575)	(238)
Income tax (expense) benefit	181	58	166	(3,274)
Net income	$ (535)	$ (178)	$ (492)	$ 9,660

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Subsequent Events (Details)	Jul. 23, 2024 $ / shares
Common Stock | Subsequent Event
Subsequent Event [Line Items]
Dividends payable (in dollars per share)	$ 0.2425