LOANS AND ALLOWANCE (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Summary of Composition of Loan Portfolio by Loan Class

The following table illustrates the composition of the Corporation’s loan portfolio by loan class for the periods indicated:

	March 31, 2023		December 31, 2022
Commercial and industrial loans	$	3,502,204	$	3,437,126
Agricultural land, production and other loans to farmers	219,598		241,793
Real estate loans:
Construction	960,979		835,582
Commercial real estate, non-owner occupied	2,375,410		2,407,475
Commercial real estate, owner occupied	1,244,117		1,246,528
Residential	2,185,943		2,096,655
Home equity	621,354		630,632
Individuals' loans for household and other personal expenditures	172,389		175,211
Public finance and other commercial loans	959,467		932,892
Loans	$	12,241,461	$	12,003,894

Summary of Credit Quality of Loan Portfolio by Loan Class

The following tables summarize the risk grading of the Corporation’s loan portfolio by loan class and by year of origination for the years indicated. Consumer loans are not risk graded. For the purposes of this disclosure, the consumer loans are classified in the following manner: loans that are less than 30 days past due are Pass, loans 30-89 days past due are Special Mention and loans greater than 89 days past due are Substandard.  The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date.

	March 31, 2023
	Term Loans (amortized cost basis by origination year)												Revolving loans amortized		Revolving loans converted
	2023		2022		2021		2020		2019		Prior		cost basis		to term		Total
Commercial and industrial loans
Pass	$	344,116	$	833,832	$	459,180	$	118,142	$	110,854	$	80,036	$	1,351,418	$	—	$	3,297,578
Special Mention	1,184		5,100		22,970		12,611		2,594		2,022		53,264		—		99,745
Substandard	—		35,900		13,576		2,748		10,391		5,012		36,459		—		104,086
Doubtful	—		—		795		—		—		—		—		—		795
Total Commercial and industrial loans	345,300		874,832		496,521		133,501		123,839		87,070		1,441,141		—		3,502,204
Current period gross write-offs	—		57		37		88		31		30		—		—		243
Agricultural land, production and other loans to farmers
Pass	12,568		42,153		35,465		34,244		14,954		30,246		47,301		—		216,931
Special Mention	—		286		760		—		—		885		—		—		1,931
Substandard	37		170		—		462		—		67		—		—		736
Total Agricultural land, production and other loans to farmers	12,605		42,609		36,225		34,706		14,954		31,198		47,301		—		219,598
Real estate loans:
Construction
Pass	177,799		317,261		295,533		111,333		930		3,162		17,785		—		923,803
Special Mention	15,625		14,014		—		—		—		—		—		—		29,639
Substandard	17		2,795		4,725		—		—		—		—		—		7,537
Total Construction	193,441		334,070		300,258		111,333		930		3,162		17,785		—		960,979
Commercial real estate, non-owner occupied
Pass	82,982		551,019		572,828		496,049		165,356		259,267		34,481		—		2,161,982
Special Mention	23,243		29,870		6,510		23,885		18,664		35,865		—		—		138,037
Substandard	7,005		16,121		12,523		23,423		—		16,269		50		—		75,391
Total Commercial real estate, non-owner occupied	113,230		597,010		591,861		543,357		184,020		311,401		34,531		—		2,375,410
Current period gross write-offs	—		2		—		—		—		—		—		—		2
Commercial real estate, owner occupied
Pass	53,588		240,722		306,558		309,989		114,099		122,322		31,628		—		1,178,906
Special Mention	63		17,766		2,692		5,623		732		3,502		4,076		—		34,454
Substandard	11,480		3,654		334		5,138		1,859		8,292		—		—		30,757
Total Commercial real estate, owner occupied	65,131		262,142		309,584		320,750		116,690		134,116		35,704		—		1,244,117
Current period gross write-offs	—		—		—		—		2		—		—		—		2
Residential
Pass	148,051		730,773		481,262		392,890		113,139		296,233		5,875		25		2,168,248
Special Mention	490		3,491		2,056		1,190		316		2,456		158		—		10,157
Substandard	—		1,168		2,099		717		480		3,074		—		—		7,538
Total Residential	148,541		735,432		485,417		394,797		113,935		301,763		6,033		25		2,185,943
Current period gross write-offs	—		7		13		1		—		110		—		—		131
Home equity
Pass	6,244		41,482		71,558		14,219		1,529		6,052		471,404		2,006		614,494
Special Mention	—		66		415		7		—		11		4,611		227		5,337
Substandard	—		—		78		—		—		354		1,050		41		1,523
Total Home Equity	6,244		41,548		72,051		14,226		1,529		6,417		477,065		2,274		621,354
Current period gross write-offs	—		18		25		2		20		169		—		—		234
Individuals' loans for household and other personal expenditures
Pass	16,204		60,965		39,063		11,318		4,409		8,397		30,980		—		171,336
Special Mention	3		259		117		42		8		23		461		128		1,041
Substandard	—		—		—		—		—		12		—		—		12
Total Individuals' loans for household and other personal expenditures	16,207		61,224		39,180		11,360		4,417		8,432		31,441		128		172,389
Current period gross write-offs	—		191		114		37		13		102		—		—		457
Public finance and other commercial loans
Pass	13,114		214,727		210,600		159,678		97,254		242,322		21,772		—		959,467
Total Public finance and other commercial loans	13,114		214,727		210,600		159,678		97,254		242,322		21,772		—		959,467
Loans	$	913,813	$	3,163,594	$	2,541,697	$	1,723,708	$	657,568	$	1,125,881	$	2,112,773	$	2,427	$	12,241,461
Total current period gross charge-offs	$	—	$	275	$	189	$	128	$	66	$	411	$	—	$	—	$	1,069

	December 31, 2022
	Term Loans (amortized cost basis by origination year)												Revolving loans amortized		Revolving loans converted
	2022		2021		2020		2019		2018		Prior		cost basis		to term		Total
Commercial and industrial loans
Pass	$	1,064,687	$	531,504	$	141,985	$	114,999	$	43,136	$	45,310	$	1,302,562	$	5,048	$	3,249,231
Special Mention	2,164		18,005		11,900		5,727		1,012		2,181		27,702		150		68,841
Substandard	27,512		26,571		5,531		10,606		4,674		567		43,450		143		119,054
Total Commercial and industrial loans	1,094,363		576,080		159,416		131,332		48,822		48,058		1,373,714		5,341		3,437,126
Agricultural land, production and other loans to farmers
Pass	44,446		36,299		35,791		15,296		3,752		28,910		73,402		—		237,896
Special Mention	286		784		—		—		281		632		—		—		1,983
Substandard	178		—		490		—		94		1,152		—		—		1,914
Total Agricultural land, production and other loans to farmers	44,910		37,083		36,281		15,296		4,127		30,694		73,402		—		241,793
Real estate loans:
Construction
Pass	366,414		301,986		117,541		11,428		857		3,224		17,167		—		818,617
Special Mention	16,922		—		—		—		—		—		—		—		16,922
Substandard	31		—		—		—		—		12		—		—		43
Total Construction	383,367		301,986		117,541		11,428		857		3,236		17,167		—		835,582
Commercial real estate, non-owner occupied
Pass	560,146		603,254		550,605		168,701		116,859		190,264		31,196		3,803		2,224,828
Special Mention	49,439		4,026		38,268		18,785		11,546		17,992		—		—		140,056
Substandard	21,123		8,128		8,026		—		4,442		872		—		—		42,591
Total Commercial real estate, non-owner occupied	630,708		615,408		596,899		187,486		132,847		209,128		31,196		3,803		2,407,475
Commercial real estate, owner occupied
Pass	260,725		316,665		330,441		114,015		63,816		81,286		33,123		3,378		1,203,449
Special Mention	7,744		6,125		2,245		3,481		1,210		2,984		1,328		—		25,117
Substandard	3,124		1,214		2,376		1,608		2,920		6,720		—		—		17,962
Total Commercial real estate, owner occupied	271,593		324,004		335,062		119,104		67,946		90,990		34,451		3,378		1,246,528
Residential
Pass	758,161		489,301		401,353		114,420		77,768		229,812		5,365		46		2,076,226
Special Mention	2,839		2,924		1,972		513		396		2,588		34		—		11,266
Substandard	1,399		1,824		1,811		805		1,468		1,741		60		55		9,163
Total Residential	762,399		494,049		405,136		115,738		79,632		234,141		5,459		101		2,096,655
Home equity
Pass	40,768		75,670		14,621		1,572		1,348		3,325		486,924		281		624,509
Special Mention	—		—		—		—		115		8		3,698		—		3,821
Substandard	—		79		—		—		65		60		2,098		—		2,302
Total Home Equity	40,768		75,749		14,621		1,572		1,528		3,393		492,720		281		630,632
Individuals' loans for household and other personal expenditures
Pass	67,883		43,639		13,025		5,389		5,830		3,775		35,091		—		174,632
Special Mention	178		134		77		33		28		17		16		—		483
Substandard	1		—		3		—		84		8		—		—		96
Total Individuals' loans for household and other personal expenditures	68,062		43,773		13,105		5,422		5,942		3,800		35,107		—		175,211
Public finance and other commercial loans
Pass	187,125		212,702		165,019		98,687		43,760		204,719		20,880		—		932,892
Total Public finance and other commercial loans	187,125		212,702		165,019		98,687		43,760		204,719		20,880		—		932,892
Loans	$	3,483,295	$	2,680,834	$	1,843,080	$	686,065	$	385,461	$	828,159	$	2,084,096	$	12,904	$	12,003,894

The tables below present the amortized cost basis of collateral dependent loans by loan class and their respective collateral type, which are individually evaluated to determine expected credit losses. Commercial and Industrial collateral dependent loans and related allowance increased $8.9 million and $5.6 million, respectively, for the three months ended March 31, 2023. The total increase in the collateral dependent balance was offset by a decrease in the commercial real estate, non-owner occupied segment of $3.6 million for the three months ended March 31, 2023.

	March 31, 2023
	Commercial Real Estate		Residential Real Estate		Other		Total		Allowance on Collateral Dependent Loans
Commercial and industrial loans	$	—	$	—	$	50,996	$	50,996	$	13,937
Real estate loans:
Construction	—		10		—		10		1
Commercial real estate, non-owner occupied	22,908		—		—		22,908		1,656
Commercial real estate, owner occupied	6,396		—		—		6,396		361
Residential	—		1,588		—		1,588		253
Home equity	—		283		—		283		42
Loans	$	29,304	$	1,881	$	50,996	$	82,181	$	16,250

	December 31, 2022
	Commercial Real Estate		Residential Real Estate		Other		Total		Allowance on Collateral Dependent Loans
Commercial and industrial loans	$	—	$	—	$	42,101	$	42,101	$	8,367
Real estate loans:
Construction	—		10		—		10		1
Commercial real estate, non-owner occupied	26,534		—		—		26,534		2,064
Commercial real estate, owner occupied	6,986		—		—		6,986		776
Residential	—		2,382		—		2,382		260
Home equity	—		289		—		289		44
Loans	$	33,520	$	2,681	$	42,101	$	78,302	$	11,512

Summary of Past Due Aging of Loan Portfolio by Loan Class

The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, for the periods indicated:

	March 31, 2023
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total		Loans > 90 Days or More Past Due And Accruing
Commercial and industrial loans	$	3,480,761	$	4,438	$	9,995	$	7,010	$	3,502,204	$	4,631
Agricultural land, production and other loans to farmers	219,571		—		—		27		219,598		—
Real estate loans:
Construction	957,367		3,612		—		—		960,979		—
Commercial real estate, non-owner occupied	2,353,426		7,154		3,891		10,939		2,375,410		797
Commercial real estate, owner occupied	1,231,113		3,757		7,444		1,803		1,244,117		1,588
Residential	2,170,577		6,667		2,759		5,940		2,185,943		—
Home equity	615,199		2,626		2,214		1,315		621,354		16
Individuals' loans for household and other personal expenditures	171,336		408		633		12		172,389		—
Public finance and other commercial loans	959,258		209		—		—		959,467		—
Loans	$	12,158,608	$	28,871	$	26,936	$	27,046	$	12,241,461	$	7,032

	December 31, 2022
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total		Loans > 90 Days or More Past Due And Accruing
Commercial and industrial loans	$	3,429,314	$	4,904	$	434	$	2,474	$	3,437,126	$	1,147
Agricultural land, production and other loans to farmers	241,739		—		—		54		241,793		—
Real estate loans:
Construction	832,716		2,436		418		12		835,582		—
Commercial real estate, non-owner occupied	2,395,495		5,946		881		5,153		2,407,475		264
Commercial real estate, owner occupied	1,241,714		4,495		—		319		1,246,528		—
Residential	2,079,959		8,607		2,278		5,811		2,096,655		—
Home equity	624,543		2,206		1,782		2,101		630,632		326
Individuals' loans for household and other personal expenditures	174,629		343		142		97		175,211		—
Public finance and other commercial loans	932,778		114		—		—		932,892		—
Loans	$	11,952,887	$	29,051	$	5,935	$	16,021	$	12,003,894	$	1,737

Summary of Non-Accrual Loans by Loan class

The following table summarizes the Corporation’s non-accrual loans by loan class for the periods indicated:

	March 31, 2023				December 31, 2022
	Non-Accrual Loans		Non-Accrual Loans with no Allowance for Credit Losses		Non-Accrual Loans		Non-Accrual Loans with no Allowance for Credit Losses
Commercial and industrial loans	$	11,051	$	856	$	3,292	$	481
Agricultural land, production and other loans to farmers	64		—		54		—
Real estate loans:
Construction	—		—		12		—
Commercial real estate, non-owner occupied	16,550		1,830		19,374		280
Commercial real estate, owner occupied	2,926		2,236		3,550		2,784
Residential	14,154		—		13,685		702
Home equity	1,811		—		2,247		—
Individuals' loans for household and other personal expenditures	20		—		110		—
Loans	$	46,576	$	4,922	$	42,324	$	4,247

Summary of Modified Loans

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

	Loan Modifications Made to Borrowers Experiencing Financial Difficulty
	Term Extension		Combination Interest Rate Reduction & Term Extension		% of Total Class of Financing Receivable
Commercial and industrial loans	$	9,224	$	—	0.26	%
Agricultural land, production and other loans to farmers	37		—		0.02	%
Real estate loans:
Construction	17		—		—	%
Commercial Real Estate, Non Owner Occupied	97		5,966		0.26	%
Commercial Real Estate, Owner Occupied	10,822		82		0.88	%
Total	$	20,197	$	6,048

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

	Financial Effect of Loan Modifications
	Term Extension	Combination Interest Rate Reduction & Term Extension
Commercial and industrial loans	Added a weighted average life of 4 months to the life of the loans, which reduced monthly payment amounts for the borrowers.
Agricultural land, production and other loans to farmers	Added a weighted average life of 60 months to the life of the loans, which reduced monthly payment amounts for the borrowers.
Real estate loans:
Construction	Added a weighted average life of 24 months to the life of the loans, which reduced monthly payment amounts for the borrowers.
Commercial Real Estate, Non Owner Occupied	Added a weighted average life of 12 months to the life of the loans, which reduced monthly payment amounts for the borrowers.	Reduced the weighted average contractual interest rate from 7.81 percent to 7.40 percent. Added a weighted average 41 months to the life of loans, which reduced monthly payment amounts for the borrowers.
Commercial Real Estate, Owner Occupied	Added a weighted average life of 9 months to the life of the loans, which reduced monthly payment amounts for the borrowers.	Reduced the weighted average contractual interest rate from 10.25 percent to 6.61 percent. Added a weighted average 114 months to the life of loans, which reduced monthly payment amounts for the borrowers.

The following table presents the amortized cost basis of loans that had a payment default and were modified during the three months ended March 31, 2023 due to the borrowers experiencing financial difficulty. At this time, all of the modifications are current.

	Payment Status
	Current
Commercial and industrial loans	$	9,224
Agricultural land, production and other loans to farmers	37
Real estate loans:
Construction	17
Commercial Real Estate, Non Owner Occupied	6,063
Commercial Real Estate, Owner Occupied	10,904
Total	$	26,245

Schedule of Purchased Credit Deteriorated Loans

The carrying amount of those loans is shown in the table below:

	Level One
Purchase price of loans at acquisition	$	41,347
CECL Day 1 PCD ACL	16,599
Par value of acquired loans at acquisition	$	57,946

Summary of Changes in Allowance for Loan Losses

The following tables summarize changes in the allowance for credit losses by loan segment for the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31, 2023
	Commercial		Commercial Real Estate		Construction		Consumer & Residential		Total
Allowance for credit losses
Balances, December 31, 2022	$	102,216	$	46,839	$	28,955	$	45,267	$	223,277
Provision for credit losses	(1,199)		(583)		(384)		2,166		—
Recoveries on loans	530		56		—		258		844
Loans charged off	(243)		(4)		—		(822)		(1,069)
Balances, March 31, 2023	$	101,304	$	46,308	$	28,571	$	46,869	$	223,052

	Three Months Ended March 31, 2022
	Commercial		Commercial Real Estate		Construction		Consumer & Residential		Total
Allowance for credit losses
Balances, December 31, 2021	$	69,935	$	60,665	$	20,206	$	44,591	$	195,397
Provision for credit losses	7,571		(8,250)		554		125		—
Recoveries on loans	139		707		—		206		1,052
Loans charged off	(8)		(122)		—		(335)		(465)
Balances, March 31, 2022	$	77,637	$	53,000	$	20,760	$	44,587	$	195,984

Summary of Financial Instruments with Off-balance Sheet Risk

Financial instruments with off-balance sheet risk were as follows:

	March 31, 2023		December 31, 2022
Amounts of commitments:
Loan commitments to extend credit	$	5,075,753	$	4,950,724
Standby letters of credit	$	42,898	$	40,784

Summary of Allowance for Credit Losses, Off-balance Sheet

The table below reflects the total allowance for credit losses for the off-balance sheet commitment for March 31, 2023 and 2022:

	Three Months Ended March 31, 2023
Balances, December 31, 2022	$	23,300
Provision for credit losses	—
Balances, March 31, 2023	$	23,300

	Three Months Ended March 31, 2022
Balances, December 31, 2021	$	20,500
Provision for credit losses	—
Balances, March 31, 2022	$	20,500