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LOANS AND ALLOWANCE (Tables)
 9 Months Ended
Sep. 30, 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 as of the dates indicated:
September 30, 2023December 31, 2022
Commercial and industrial loans$3,490,953 $3,437,126 
Agricultural land, production and other loans to farmers233,838 241,793 
Real estate loans:
Construction1,022,261 835,582 
Commercial real estate, non-owner occupied2,360,596 2,407,475 
Commercial real estate, owner occupied1,153,707 1,246,528 
Residential2,257,385 2,096,655 
Home equity609,352 630,632 
Individuals' loans for household and other personal expenditures176,523 175,211 
Public finance and other commercial loans966,807 932,892 
Loans$12,271,422 $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.
September 30, 2023
Term Loans (amortized cost basis by origination year)Revolving loans amortizedRevolving loans converted
20232022202120202019Priorcost basisto termTotal
Commercial and industrial loans
Pass$901,876 $548,276 $296,471 $95,426 $53,498 $49,094 $1,374,146 $50 $3,318,837 
Special Mention9,450 11,955 6,428 5,470 114 897 28,202 — 62,516 
Substandard5,902 20,082 16,554 1,959 4,701 1,655 48,890 — 99,743 
Doubtful908 3,945 — 2,149 — — 2,855 — 9,857 
Total Commercial and industrial loans918,136 584,258 319,453 105,004 58,313 51,646 1,454,093 50 3,490,953 
Current period gross write-offs13,901 508 400 5,588 76 239 — — 20,712 
Agricultural land, production and other loans to farmers
Pass22,521 38,866 33,059 32,234 13,819 26,251 65,513 — 232,263 
Special Mention— 266 — — — 597 — — 863 
Substandard34 156 — 458 — 64 — — 712 
Total Agricultural land, production and other loans to farmers22,555 39,288 33,059 32,692 13,819 26,912 65,513 — 233,838 
Current period gross write-offs— — — — — — — — — 
Real estate loans:
Construction
Pass362,578 295,563 266,129 14,325 4,047 2,526 11,577 — 956,745 
Special Mention35,063 424 — 20,846 — — — — 56,333 
Substandard13 3,882 5,288 — — — — — 9,183 
Total Construction397,654 299,869 271,417 35,171 4,047 2,526 11,577 — 1,022,261 
Current period gross write-offs— — — — — — — — — 
Commercial real estate, non-owner occupied
Pass214,579 529,237 533,207 471,278 142,636 225,787 31,615 — 2,148,339 
Special Mention64,871 22,956 7,842 3,641 26,567 32,842 47 — 158,766 
Substandard18,666 9,807 92 22,216 — 2,339 247 — 53,367 
Doubtful— 124 — — — — — — 124 
Total Commercial real estate, non-owner occupied298,116 562,124 541,141 497,135 169,203 260,968 31,909 — 2,360,596 
Current period gross write-offs— 2 — — — — — — 2 
Commercial real estate, owner occupied
Pass119,212 207,077 270,151 269,190 101,546 87,685 27,327 — 1,082,188 
Special Mention5,178 13,603 9,437 6,053 2,831 5,110 334 — 42,546 
Substandard15,113 1,339 4,228 2,486 17 5,163 627 — 28,973 
Total Commercial real estate, owner occupied139,503 222,019 283,816 277,729 104,394 97,958 28,288 — 1,153,707 
Current period gross write-offs— — — — 2 — — — 2 
Residential
Pass332,210 691,941 451,830 372,247 105,548 265,879 4,878 65 2,224,598 
Special Mention1,087 5,304 4,034 1,710 1,578 6,501 2,588 — 22,802 
Substandard357 3,338 2,234 974 528 2,523 31 — 9,985 
Total Residential333,654 700,583 458,098 374,931 107,654 274,903 7,497 65 2,257,385 
Current period gross write-offs— 42 135 3 — 63 — — 243 
Home equity
Pass9,155 34,784 64,438 11,511 1,162 4,566 472,517 2,065 600,198 
Special Mention120 720 41 1,114 — 168 4,108 371 6,642 
Substandard63 — 599 — — 93 1,374 383 2,512 
Total Home Equity9,338 35,504 65,078 12,625 1,162 4,827 477,999 2,819 609,352 
Current period gross write-offs— 160 182 149 193 1,422 — — 2,106 
Individuals' loans for household and other personal expenditures
Pass32,590 52,860 31,275 8,070 2,735 6,572 40,907 597 175,606 
Special Mention29 388 250 34 11 11 193 1 917 
Substandard— — — — — — — — — 
Total Individuals' loans for household and other personal expenditures32,619 53,248 31,525 8,104 2,746 6,583 41,100 598 176,523 
Current period gross write-offs98 591 291 77 57 151 — — 1,265 
Public finance and other commercial loans
Pass61,235 209,069 206,637 157,399 91,705 231,931 8,831 — 966,807 
Total Public finance and other commercial loans61,235 209,069 206,637 157,399 91,705 231,931 8,831 — 966,807 
Loans$2,212,810 $2,705,962 $2,210,224 $1,500,790 $553,043 $958,254 $2,126,807 $3,532 $12,271,422 
Total current period gross charge-offs$13,999 $1,303 $1,008 $5,817 $328 $1,875 $— $— $24,330 
December 31, 2022
Term Loans (amortized cost basis by origination year)Revolving loans amortizedRevolving loans converted
20222021202020192018Priorcost basisto termTotal
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 Mention2,164 18,005 11,900 5,727 1,012 2,181 27,702 150 68,841 
Substandard27,512 26,571 5,531 10,606 4,674 567 43,450 143 119,054 
Total Commercial and industrial loans1,094,363 576,080 159,416 131,332 48,822 48,058 1,373,714 5,341 3,437,126 
Agricultural land, production and other loans to farmers
Pass44,446 36,299 35,791 15,296 3,752 28,910 73,402 — 237,896 
Special Mention286 784 — — 281 632 — — 1,983 
Substandard178 — 490 — 94 1,152 — — 1,914 
Total Agricultural land, production and other loans to farmers44,910 37,083 36,281 15,296 4,127 30,694 73,402 — 241,793 
Real estate loans:
Construction
Pass366,414 301,986 117,541 11,428 857 3,224 17,167 — 818,617 
Special Mention16,922 — — — — — — — 16,922 
Substandard31 — — — — 12 — — 43 
Total Construction383,367 301,986 117,541 11,428 857 3,236 17,167 — 835,582 
Commercial real estate, non-owner occupied
Pass560,146 603,254 550,605 168,701 116,859 190,264 31,196 3,803 2,224,828 
Special Mention49,439 4,026 38,268 18,785 11,546 17,992 — — 140,056 
Substandard21,123 8,128 8,026 — 4,442 872 — — 42,591 
Total Commercial real estate, non-owner occupied630,708 615,408 596,899 187,486 132,847 209,128 31,196 3,803 2,407,475 
Commercial real estate, owner occupied
Pass260,725 316,665 330,441 114,015 63,816 81,286 33,123 3,378 1,203,449 
Special Mention7,744 6,125 2,245 3,481 1,210 2,984 1,328 — 25,117 
Substandard3,124 1,214 2,376 1,608 2,920 6,720 — — 17,962 
Total Commercial real estate, owner occupied271,593 324,004 335,062 119,104 67,946 90,990 34,451 3,378 1,246,528 
Residential
Pass758,161 489,301 401,353 114,420 77,768 229,812 5,365 46 2,076,226 
Special Mention2,839 2,924 1,972 513 396 2,588 34 — 11,266 
Substandard1,399 1,824 1,811 805 1,468 1,741 60 55 9,163 
Total Residential762,399 494,049 405,136 115,738 79,632 234,141 5,459 101 2,096,655 
Home equity
Pass40,768 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 Equity40,768 75,749 14,621 1,572 1,528 3,393 492,720 281 630,632 
Individuals' loans for household and other personal expenditures
Pass67,883 43,639 13,025 5,389 5,830 3,775 35,091 — 174,632 
Special Mention178 134 77 33 28 17 16 — 483 
Substandard1 — 3 — 84 8 — — 96 
Total Individuals' loans for household and other personal expenditures68,062 43,773 13,105 5,422 5,942 3,800 35,107 — 175,211 
Public finance and other commercial loans
Pass187,125 212,702 165,019 98,687 43,760 204,719 20,880 — 932,892 
Total Public finance and other commercial loans187,125 212,702 165,019 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. The total collateral dependent loan balance decreased $9.5 million, primarily related to a $9.4 million decrease in commercial real estate, non-owner occupied for the nine months ended September 30, 2023. The total related allowance balance increased $3.4 million, primarily related to an increase of $6.2 million in commercial and industrial, offset by a $2.0 million decrease in commercial real estate, non-owner occupied for the nine months ended September 30, 2023.
September 30, 2023
Commercial Real EstateResidential Real EstateOtherTotal Allowance on Collateral Dependent Loans
Commercial and industrial loans$— $— $39,343 $39,343 $14,542 
Real estate loans:
Construction— 8 — 8 1 
Commercial real estate, non-owner occupied17,145 — — 17,145 57 
Commercial real estate, owner occupied10,568 — — 10,568 — 
Residential— 1,464 — 1,464 235 
Home equity— 227 — 227 31 
Loans$27,713 $1,699 $39,343 $68,755 $14,866 


December 31, 2022
Commercial Real EstateResidential Real EstateOtherTotal 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 occupied26,534 — — 26,534 2,064 
Commercial real estate, owner occupied6,986 — — 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, as of the dates indicated:
September 30, 2023
Current30-59 Days
Past Due		60-89 Days
Past Due		90 Days or More Past DueTotalLoans > 90 Days or More Past Due
And Accruing
Commercial and industrial loans$3,474,368 $4,005 $3,224 $9,356 $3,490,953 $12 
Agricultural land, production and other loans to farmers233,811 — — 27 233,838 — 
Real estate loans:
Construction1,021,537 300 424 — 1,022,261 — 
Commercial real estate, non-owner occupied2,343,002 4,603 1,913 11,078 2,360,596 — 
Commercial real estate, owner occupied1,150,029 2,368 1,225 85 1,153,707 — 
Residential2,227,184 10,884 10,405 8,912 2,257,385 39 
Home equity602,829 2,878 1,325 2,320 609,352 38 
Individuals' loans for household and other personal expenditures175,605 773 145 — 176,523 — 
Public finance and other commercial loans966,774 33 — — 966,807 — 
Loans$12,195,139 $25,844 $18,661 $31,778 $12,271,422 $89 


December 31, 2022
Current30-59 Days
Past Due		60-89 Days
Past Due		90 Days or More Past DueTotalLoans > 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 farmers241,739 — — 54 241,793 — 
Real estate loans:
Construction832,716 2,436 418 12 835,582 — 
Commercial real estate, non-owner occupied2,395,495 5,946 881 5,153 2,407,475 264 
Commercial real estate, owner occupied1,241,714 4,495 — 319 1,246,528 — 
Residential2,079,959 8,607 2,278 5,811 2,096,655 — 
Home equity624,543 2,206 1,782 2,101 630,632 326 
Individuals' loans for household and other personal expenditures174,629 343 142 97 175,211 — 
Public finance and other commercial loans932,778 114 — — 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 nonaccrual loans by loan class as of the dates indicated:
September 30, 2023December 31, 2022
Nonaccrual LoansNonaccrual Loans with no Allowance for Credit LossesNonaccrual LoansNonaccrual Loans with no Allowance for Credit Losses
Commercial and industrial loans$14,737 $1,020 $3,292 $481 
Agricultural land, production and other loans to farmers61 — 54 — 
Real estate loans:
Construction724 — 12 — 
Commercial real estate, non-owner occupied11,575 11,293 19,374 280 
Commercial real estate, owner occupied3,125 2,314 3,550 2,784 
Residential20,244 — 13,685 702 
Home equity2,534 — 2,247 — 
Individuals' loans for household and other personal expenditures102 — 110 — 
Loans$53,102 $14,627 $42,324 $4,247 
Summary of Modified Loans The following tables present the amortized cost basis of loans at September 30, 2023 that were both experiencing financial difficulty and modified during the three and nine months ended September 30, 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.
Three Months Ended September 30, 2023
Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Payment DelayTerm ExtensionCombination Interest Rate Reduction & Term ExtensionCombination Payment Delay & Term Extension% of Total Class of Financing Receivable
Commercial and industrial loans$908 $7,734 $134 $— 0.25 %
Real estate loans:
Commercial real estate, non-owner occupied— 11,823 — — 0.50 %
Commercial real estate, owner occupied— 6,950 — — 0.60 %
Home equity— 63 — — 0.01 %
Individuals' loans for household and other personal expenditures— — — 1 — %
Total$908 $26,570 $134 $1 
Nine Months Ended September 30, 2023
Loan Modifications Made to Borrowers Experiencing Financial Difficulty
Payment DelayTerm ExtensionCombination Interest Rate Reduction & Term ExtensionCombination Payment Delay & Term Extension% of Total Class of Financing Receivable
Commercial and industrial loans$908 $14,822 $239 $— 0.46 %
Agricultural land, production and other loans to farmers— 34 — — 0.01 %
Real estate loans:
Construction— 13 — — — %
Commercial real estate, non-owner occupied— 11,823 5,942 — 0.75 %
Commercial real estate, owner occupied5,602 8,642 75 — 1.24 %
Residential— — — 472 0.02 %
Home equity— 63 — — 0.01 %
Individuals' loans for household and other personal expenditures— — — 1 — %
Total$6,510 $35,397 $6,256 $473 


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

Three Months Ended September 30, 2023
Financial Effect of Loan Modifications
Payment DelayTerm ExtensionCombination Interest Rate Reduction & Term ExtensionCombination Payment Delay & Term Extension
Commercial and industrial loans
Provided payment deferrals with weighted average delayed amounts of $24,000.
Extended loans by a weighted average of 8 months
Reduced the weighted average contractual interest rate from 10.75% to 7.62%. Extended loans by a weighted average of 14 months.
Real estate loans:
Commercial real estate, non-owner occupied
Extended loans by a weighted average of 11 months.
Commercial real estate, owner occupied
Extended loans by a weighted average of 4 months.
Residential
Provided payment deferrals with weighted average delayed amounts of $300. Extended loans by a weighted average of 3 months.
Home equity
Extended loans by a weighted average of 5 months.
Nine Months Ended September 30, 2023
Financial Effect of Loan Modifications
Payment DelayTerm ExtensionCombination Interest Rate Reduction & Term ExtensionCombination Payment Delay & Term Extension
Commercial and industrial loans
Provided payment deferrals with weighted average delayed amounts of $24,000
Extended loans by a weighted average of 8 months.
Reduced the weighted average contractual interest rate from 9.66% to 7.39%. Extended loans by a weighted average of 13 months.
Agricultural land, production and other loans to farmers
Extended loans by a weighted average of 60 months.
Real estate loans:
Construction
Extended loans by a weighted average of 24 months.
Commercial real estate, non-owner occupied
Extended loans by a weighted average of 10 months.
Reduced the weighted average contractual interest rate from 7.81% to 7.40%. Extended loans by a weighted average of 41 months.
Commercial real estate, owner occupied
Provided payment deferrals with weighted average delayed amounts of $4.5 million.
Extended loans by a weighted average of 4 months.
Reduced the weighted average contractual interest rate from 10.25% to 6.61%. Extended loans by a weighted average of 114 months.
Residential
Provided payment deferrals with weighted average delayed amounts $3,400. Extended loans by a weighted average of 3 months.
Home equity
Extended loans by a weighted average of 5 months.
Provided payment deferrals with weighted average delayed amounts $300. Extended loans by a weighted average of 3 months.


The following tables present the amortized cost basis and payment status of loans that were modified during the three and nine months ended September 30, 2023 due to the borrowers experiencing financial difficulty.
Three Months Ended September 30, 2023
Payment Status
Current30-89 Days Past Due
Commercial and industrial loans$8,776 $— 
Real estate loans:
Commercial real estate, non-owner occupied11,823 — 
Commercial real estate, owner occupied6,950 — 
Home equity63 — 
Individuals' loans for household and other personal expenditures— 1 
Total$27,612 $1 

Nine Months Ended September 30, 2023
Payment Status
Current30-89 Days Past Due
Commercial and industrial loans$15,863 $106 
Agricultural land, production and other loans to farmers34 — 
Real estate loans:
Construction13 — 
Commercial real estate, non-owner occupied17,765 — 
Commercial real estate, owner occupied13,157 1,162 
Residential472 — 
Home equity63 — 
Individuals' loans for household and other personal expenditures— 1 
Total$47,367 $1,269 
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 and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30, 2023
CommercialCommercial Real EstateConstructionConsumer & ResidentialTotal
Allowance for credit losses
Balances, June 30, 2023$108,373 $39,157 $30,073 $43,544 $221,147 
Provision for credit losses3,020 4,901 140 (3,061)5,000 
Recoveries on loans179 — — 367 546 
Loans charged off(19,833)— — (1,078)(20,911)
Balances, September 30, 2023$91,739 $44,058 $30,213 $39,772 $205,782 

Nine Months Ended September 30, 2023
CommercialCommercial Real EstateConstructionConsumer & ResidentialTotal
Allowance for credit losses
Balances, December 31, 2022$102,216 $46,839 $28,955 $45,267 $223,277 
Provision for credit losses9,460 (2,833)1,258 (2,885)5,000 
Recoveries on loans775 56 — 1,004 1,835 
Loans charged off(20,712)(4)— (3,614)(24,330)
Balances, September 30, 2023$91,739 $44,058 $30,213 $39,772 $205,782 
Three Months Ended September 30, 2022
CommercialCommercial Real EstateConstructionConsumer & ResidentialTotal
Allowance for credit losses
Balances, June 30, 2022$94,228 $55,328 $27,401 $49,318 $226,275 
Provision for credit losses10,142 (7,054)186 (3,274)— 
Recoveries on loans81 188 824 222 1,315 
Loans charged off(306)(1)— (581)(888)
Balances, September 30, 2022$104,145 $48,461 $28,411 $45,685 $226,702 
Nine Months Ended September 30, 2022
CommercialCommercial Real EstateConstructionConsumer & ResidentialTotal
Allowance for credit losses
Balances, December 31, 2021$69,935 $60,665 $20,206 $44,591 $195,397 
Provision for credit losses18,518 (21,697)5,862 (2,683)— 
CECL Day 1 non-PCD provision for credit losses2,957 5,539 871 4,588 13,955 
CECL Day 1 PCD ACL12,970 2,981 648 — 16,599 
Recoveries on loans789 1,096 824 827 3,536 
Loans charged off(1,024)(123)— (1,638)(2,785)
Balances, September 30, 2022$104,145 $48,461 $28,411 $45,685 $226,702 
Summary of Financial Instruments with Off-balance Sheet Risk
Financial instruments with off-balance sheet risk were as follows:
September 30, 2023December 31, 2022
Amounts of commitments:
Loan commitments to extend credit$5,074,572 $4,950,724 
Standby letters of credit$39,812 $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 the three and nine months ended September 30, 2023 and 2022:
Three Months EndedNine Months Ended
September 30, 2023September 30, 2022September 30, 2023September 30, 2022
Balance at beginning of the period$23,300 $23,300 $23,300 $20,500 
Provision for credit losses - unfunded commitments related to Level One— — — 2,800 
Provision for credit losses - unfunded commitments(3,000)— (3,000)— 
Ending balance$20,300 $23,300 $20,300 $23,300