0001140361-22-007951 | 10-K | XBRL Viewer

^[1]

(1,928)

Net Interest Income After Provision for Credit Losses

^[1]

12,463

824

131,693

111,149

121,757

NON-INTEREST INCOME

Interchange income

14,045

11,230

10,297

Service charges on deposit accounts

10,170

8,517

11,208

Net gains on assets

Mortgage loans

35,880

62,560

19,978

Mortgage loan servicing, net

1,411

267

307

5,745

(9,350)

(3,336)

Total Non-Interest Income

9,392

7,521

9,282

76,643

80,745

47,736

NON-INTEREST EXPENSE

Compensation and employee benefits

79,969

74,781

67,501

Data processing

10,823

8,534

8,905

Occupancy, net

8,794

8,938

9,013

Interchange expense

4,434

3,342

3,215

Furniture, fixtures and equipment

4,172

4,089

4,113

Loan and collection

3,172

3,037

2,685

Communications

3,080

3,194

2,947

Legal and professional

2,068

2,027

1,814

Advertising

1,918

2,230

2,450

Conversion related expense

1,827

2,586

FDIC deposit insurance

1,396

1,596

685

1,207

263

246

Total Non-interest Expense

8,163

7,796

8,159

131,023

122,413

111,733

Income Before Income Tax

77,313

69,481

57,760

Income tax expense

14,418

13,329

11,325

Net Income

$ 62,895

$ 56,152

$ 46,435

Net income per common share

Basic (in dollars per share)

^[2]

$ 2.91

$ 2.56

$ 2.03

Diluted (in dollars per share)

$ 2.88

$ 2.53

$ 2.00

[1]	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.
[2]	Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net income	$ 62,895	$ 56,152	$ 46,435
Securities available for sale
Unrealized gain (loss) arising during period	(10,644)	15,611	10,235
Change in unrealized gains and losses for which a portion of other than temporary impairment has been recognized in earnings	0	(49)	(65)
Reclassification adjustments for gains included in earnings	(1,411)	(267)	(140)
Unrealized gains (losses) recognized in other comprehensive income (loss) on securities available for sale	(12,055)	15,295	10,030
Income tax expense (benefit)	(2,532)	3,212	2,106
Unrealized gains (losses) recognized in other comprehensive income (loss) on securities available for sale, net of tax	(9,523)	12,083	7,924
Derivative instruments
Unrealized losses arising during period	0	(354)	(1,603)
Reclassification adjustment for (income) expense recognized in earnings	0	2,539	(425)
Unrealized gains (losses) recognized in other comprehensive income (loss) on derivative instruments	0	2,185	(2,028)
Income tax expense (benefit)	0	458	(426)
Unrealized gains (losses) recognized in other comprehensive income (loss) on derivative instruments, net of tax	0	1,727	(1,602)
Other comprehensive income (loss)	(9,523)	13,810	6,322
Comprehensive income	$ 53,372	$ 69,962	$ 52,757

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Retained Earnings (Accumulated Deficit) [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total	Cumulative Change, Adjustment [Member] Common Stock [Member]	Cumulative Change, Adjustment [Member] Retained Earnings (Accumulated Deficit) [Member]	Cumulative Change, Adjustment [Member] Accumulated Other Comprehensive Income (Loss) [Member]	Cumulative Change, Adjustment [Member]	Cumulative Change, Adjusted Balance [Member] Common Stock [Member]	Cumulative Change, Adjusted Balance [Member] Retained Earnings (Accumulated Deficit) [Member]	Cumulative Change, Adjusted Balance [Member] Accumulated Other Comprehensive Income (Loss) [Member]	Cumulative Change, Adjusted Balance [Member]
Balance at beginning of period at Dec. 31, 2018	$ 377,372	$ (28,270)	$ (10,108)	$ 338,994
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	46,435	0	46,435
Cash dividends declared	0	(16,554)	0	(16,554)
Repurchase of common stock	(26,284)	0	0	(26,284)
Issuance of common stock	284	0	0	284
Share based compensation	1,854	0	0	1,854
Share based compensation withholding obligation	(882)	0	0	(882)
Other comprehensive income (loss)	0	0	6,322	6,322
Balances at end of period at Dec. 31, 2019	352,344	1,611	(3,786)	350,169
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	56,152	0	56,152
Cash dividends declared	0	(17,618)	0	(17,618)
Repurchase of common stock	(14,231)	0	0	(14,231)
Issuance of common stock	15	0	0	15
Share based compensation	1,980	0	0	1,980
Share based compensation withholding obligation	(755)	0	0	(755)
Other comprehensive income (loss)	0	0	13,810	13,810
Balances at end of period at Dec. 31, 2020	339,353	40,145	10,024	389,522
Balances at end of period (ASU 2016-13 [Member]) at Dec. 31, 2020					$ 0	$ (10,303)	$ 0	$ (10,303)	$ 339,353	$ 29,842	$ 10,024	$ 379,219
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	0	62,895	0	62,895
Cash dividends declared	0	(18,155)	0	(18,155)
Repurchase of common stock	(17,269)	0	0	(17,269)
Issuance of common stock	61	0	0	61
Share based compensation	1,947	0	0	1,947
Share based compensation withholding obligation	(691)	0	0	(691)
Other comprehensive income (loss)	0	0	(9,523)	(9,523)
Balances at end of period at Dec. 31, 2021	$ 323,401	$ 74,582	$ 501	$ 398,484

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY [Abstract]
Cash dividends declared (in dollars per share)	$ 0.84	$ 0.80	$ 0.72
Repurchase of shares of common stock (in shares)	814,910	708,956	1,204,688
Issuance of shares of common stock (in shares)	40,350	17,317	71,799
Share based compensation, common stock (in shares)	128,018	103,429	92,275
Share based compensation withholding obligation, common stock (in shares)	36,222	39,633	57,468

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract]

Net Income

$ 62,895

$ 56,152

$ 46,435

ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM OPERATING ACTIVITIES

Proceeds from the sale of equity securities at fair value

560

Proceeds from sales of loans held for sale

1,283,741

1,478,908

642,537

Disbursements for loans held for sale

(1,210,897)

(1,438,982)

(647,606)

^[1]

(1,928)

Deferred income tax (benefit) expense

^[1]

12,463

824

1,912

(2,130)

1,088

Net deferred loan fees (costs)

(7,857)

1,686

(2,936)

Net depreciation, amortization of intangible assets and premiums and accretion of discounts on securities, loans and interest bearing deposits - time

12,130

9,161

6,059

Net gains on mortgage loans

(35,880)

(62,560)

(19,978)

Net gains on securities available for sale

(1,411)

(267)

(307)

Share based compensation

1,947

1,980

1,854

Increase in accrued income and other assets

(11,669)

(7,966)

(6,061)

Increase in accrued expenses and other liabilities

17,171

10,239

12,023

Total Adjustments

47,259

2,532

(11,943)

Net Cash From Operating Activities

110,154

58,684

34,492

CASH FLOW USED IN INVESTING ACTIVITIES

Proceeds from the sale of securities available for sale

85,371

38,095

68,716

Proceeds from maturities, prepayments and calls of securities available for sale

375,723

306,691

153,938

Purchases of securities available for sale

(824,348)

(859,068)

(237,672)

Proceeds from the maturity of interest bearing deposits - time

350

250

Purchase of Federal Home Loan Bank stock

(68)

Net increase in portfolio loans (loans originated, net of principal payments)

(205,539)

(41,861)

(215,276)

Proceeds from the sale of portfolio loans

10,032

2,395

50,516

Proceeds from the sale of other real estate and repossessed assets

1,004

1,367

1,766

Proceeds from bank-owned life insurance

467

1,441

470

Proceeds from the sale of property and equipment

1,133

Capital expenditures

(5,837)

(4,383)

(4,936)

Net Cash Used in Investing Activities

(563,064)

(553,908)

(182,154)

CASH FLOW FROM FINANCING ACTIVITIES

Net increase in total deposits

479,735

600,628

123,299

Net increase (decrease) in other borrowings

(3)

(24,994)

25,002

Proceeds from Federal Home Loan Bank advances

100,000

239,254

111,000

Payments of Federal Home Loan Bank advances

(100,000)

(272,910)

(73,143)

Proceeds from issuance of subordinated debt, net of issuance costs

39,236

Dividends paid

(18,155)

(17,618)

(16,554)

Proceeds from issuance of common stock

284

Repurchase of common stock

(17,269)

(14,231)

(26,284)

Share based compensation withholding obligation

(691)

(755)

(882)

Net Cash From Financing Activities

443,678

548,625

142,722

Net Increase (Decrease) in Cash and Cash Equivalents

(9,232)

53,401

(4,940)

Cash and Cash Equivalents at Beginning of Year

118,705

65,304

70,244

Cash and Cash Equivalents at End of Year

109,473

118,705

65,304

Cash paid during the year for

Interest

8,419

16,912

26,697

Income taxes

14,059

15,500

9,534

Transfers to other real estate and repossessed assets

253

332

2,242

Transfer of mortgage loans to held for sale

34,811

36,622

Securitization of portfolio loans

26,324

65,070

Right of use assets obtained in exchange for lease obligations

283

1,587

9,906

Purchase of securities available for sale not yet settled

$ 0

$ 1,000

$ 0

[1]	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2021

ACCOUNTING POLICIES [Abstract]

ACCOUNTING POLICIES

NOTE 1 – ACCOUNTING POLICIES

The accounting and reporting policies and practices of Independent Bank Corporation and subsidiaries (‘‘IBCP’’) conform to accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. Our critical accounting policies include the determination of the allowance for credit losses and the valuation of capitalized mortgage loan servicing rights. We are required to make material estimates and assumptions that are particularly susceptible to changes in the near term as we prepare the consolidated financial statements and report amounts for each of these items. Actual results may vary from these estimates.

Our subsidiary, Independent Bank (‘‘Bank’’), transacts business in the single industry of commercial banking. Our Bank’s activities cover traditional phases of commercial banking, including checking and savings accounts, commercial lending, direct and indirect consumer financing and mortgage lending. Our principal markets are the rural and suburban communities across Lower Michigan that are served by our Bank’s branches and loan production offices as well as two loan productions offices we have in Ohio. At December 31, 2021, 69.0% of our Bank’s loan portfolio was secured by real estate.

PRINCIPLES OF CONSOLIDATION — The consolidated financial statements include the accounts of Independent Bank Corporation and its subsidiaries. The income, expenses, assets and liabilities of the subsidiaries are included in the respective accounts of the consolidated financial statements, after elimination of all intercompany accounts and transactions.

STATEMENTS OF CASH FLOWS — For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest bearing deposits and federal funds sold. Generally, federal funds are sold for one-day periods. We report net cash flows for customer loan and deposit transactions and for short-term borrowings.

INTEREST BEARING DEPOSITS — Interest bearing deposits consist of overnight deposits with the Federal Reserve Bank.

LOANS HELD FOR SALE — Mortgage loans originated and intended for sale in the secondary market are carried at fair value. Fair value adjustments, as well as realized gains and losses, are recorded in current earnings. Certain portfolio loans were reclassified to held for sale as of December 31, 2021, were carried at the lower of cost or fair value on an aggregate loan basis and were sold during the first quarter of 2022.

OPERATING SEGMENTS — While chief decision-makers monitor the revenue streams of our various products and services, operations are managed and financial performance is evaluated as one single unit. Discrete financial information is not available other than on a consolidated basis for material lines of business.

CAPITALIZED MORTGAGE LOAN SERVICING RIGHTS — We account for our capitalized mortgage loan servicing rights under the fair value method of accounting. We recognize as separate assets the rights to service mortgage loans for others. The fair value of capitalized mortgage loan servicing rights has been determined based upon fair value indications for similar servicing. Under the fair value method we measure capitalized mortgage loan servicing rights at fair value at each reporting date and report changes in fair value of capitalized mortgage loan servicing rights in earnings in the period in which the changes occur and are included in mortgage loan servicing, net in the Consolidated Statements of Operations. The fair value of capitalized mortgage loan servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses.

Mortgage loan servicing income is recorded for fees earned for servicing loans previously sold. The fees are generally based on a contractual percentage of the outstanding principal and are recorded as income when earned. Mortgage loan servicing fees, excluding fair value changes of capitalized mortgage loan servicing rights, totaled $7.9 million, $6.9 million and $6.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. Late fees and ancillary fees related to loan servicing are not material.

TRANSFERS OF FINANCIAL ASSETS — Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from us, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and we do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

SECURITIES — We classify our securities as equity, trading, held to maturity or available for sale. Equity securities are investments in certain equity stocks and are reported at fair value with realized and unrealized gains and losses included in earnings. Trading securities are bought and held principally for the purpose of selling them in the near term and are reported at fair value with realized and unrealized gains and losses included in earnings. Securities held to maturity represent those securities for which we have the positive intent and ability to hold until maturity and are reported at cost, adjusted for amortization of premiums and accretion of discounts computed on the level-yield method. We did not have any equity securities, trading securities or securities held to maturity at December 31, 2021 and 2020. Securities available for sale represent those securities not classified as equity, trading or held to maturity and are reported at fair value with unrealized gains and losses, net of applicable income taxes reported in other comprehensive income (loss).

Securities available for sale in unrealized loss positions are evaluated quarterly for impairment related to credit losses. For securities available for sale in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet this criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, adverse conditions specifically related to the security and the issuer and the impact of changes in market interest rates on the market value of the security, among other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an ACL is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income (loss), net of applicable taxes.

Gains and losses realized on the sale of securities available for sale are determined using the specific identification method and are recognized on a trade-date basis.

FEDERAL HOME LOAN BANK (‘‘FHLB’’) STOCK — Our Bank subsidiary is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income in interest income-other investments on the Consolidated Statements of Operations.

FEDERAL RESERVE BANK (‘‘FRB’’) STOCK — Our Bank subsidiary is a member of its regional Federal Reserve Bank. FRB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income in interest income-other investments on the Consolidated Statements of Operations.

LOAN REVENUE RECOGNITION — Interest on loans is accrued based on the principal amounts outstanding. In general, the accrual of interest income is discontinued when a loan becomes 90 days past due for commercial loans and installment loans and when a loan misses four consecutive payments for mortgage loans and the borrower’s capacity to repay the loan and collateral values appear insufficient for each loan class. However, loans may be placed on non-accrual status regardless of whether or not such loans are considered past due if, in management’s opinion, the borrower is unable to meet payment obligations as they become due or as required by regulatory provisions. All interest accrued but not received for all loans placed on non-accrual is reversed from interest income. Payments on such loans are generally applied to the principal balance until qualifying to be returned to accrual status. A non-accrual loan may be restored to accrual status when interest and principal payments are current and the loan appears otherwise collectible. Delinquency status for all classes in the commercial and installment loan portfolio segments is based on the actual number of days past due as required by the contractual terms of the loan agreement while delinquency status for mortgage loan portfolio segment classes is based on the number of payments past due.

Certain loan fees and direct loan origination costs are deferred and recognized as an adjustment of yield generally over the contractual life of the related loan. Fees received in connection with loan commitments are deferred until the loan is advanced and are then recognized generally over the contractual life of the loan as an adjustment of yield. Fees on commitments that expire unused are recognized at expiration. Fees received for letters of credit are recognized as revenue over the life of the commitment.

ALLOWANCE FOR CREDIT LOSSES (“ACL”) — Our loan portfolio is disaggregated into segments for purposes of determining the ACL which include commercial, mortgage and installment loans. These segments are further disaggregated into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Classes within the commercial loan segment include (i) commercial and industrial and (ii) commercial real estate. Classes within the mortgage loan segment include (i) 1-4 family owner occupied - jumbo, (ii) 1-4 family owner occupied - non-jumbo, (iii) 1-4 family non-owner occupied (iv) 1-4 family - 2nd lien and (v) resort lending. Classes within the installment loan segment include (i) boat lending, (ii) recreational vehicle lending, and (iii) other. Commercial loans are subject to adverse market conditions which may impact the borrower’s ability to make repayment on the loan or could cause a decline in the value of the collateral that secures the loan. Mortgage and installment loans are subject to adverse employment conditions in the local economy which could increase default rates. In addition, mortgage loans and real estate based installment loans are subject to adverse market conditions which could cause a decline in the value of collateral that secures the loan. For an analysis of the ACL by portfolio segment and credit quality information by class, see note #4.

We estimate the ACL based on relevant available information from both internal and external sources, including historical loss trends, current conditions and forecasts, specific analysis of individual loans, and other relevant and appropriate factors. The allowance process is designed to provide for expected future losses based on our reasonable and supportable (“R&S”) forecast as of the reporting date. Our ACL process is administered by our Risk Management group utilizing a third party software solution, with significant input and ultimate approval from our Executive Enterprise Risk Committee. Further, we have established a current expected credit loss (“CECL”) Forecast Committee, which includes a cross discipline structure with membership from Executive Management, Risk Management, and Accounting, which approves ACL model assumptions each quarter. Our ACL is comprised of three principal elements: (i) specific analysis of individual loans identified during the review of the loan portfolio, (ii) pooled analysis of loans with similar risk characteristics based on historical experience, adjusted for current conditions, R&S forecasts, and expected prepayments, and (iii) additional allowances based on subjective factors, including local and general economic business factors and trends, portfolio concentrations and changes in the size and/or the general terms of the loan portfolio.

The first ACL element (specific allocations) includes loans that do not share similar risk characteristics and are evaluated on an individual basis. We will typically evaluate on an individual basis loans that are on nonaccrual; commercial loans that have been modified resulting in a concession, for which the borrower is experiencing financial difficulties, and which are considered troubled debt restructurings (“TDR”); and severely delinquent mortgage and installment loans. A loan can be removed from TDR status if it is subsequently restructured, the borrower is no longer experiencing financial difficulties, and the newly restructured agreement does not contain any concessions to the borrower. The new agreement must specify market terms, including a contractual interest rate not less than a market interest rate for a new loan with similar credit risk characteristics, and other terms no less favorable to us than those we would offer for a similar new loan.

For loans that we evaluate on an individual basis and we determine that foreclosure is probable or when repayment is expected to be provided substantially through the operation or sale of underlying collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for estimated selling costs. For loans evaluated on an individual basis that are not determined to be collateral dependent, a discounted cash flow analysis is performed to determine expected credit losses.

The second ACL element (pooled analysis) includes loans with similar risk characteristics, which are broken down by segment, class, and risk metric. The Bank’s primary segments of commercial, mortgage, and installment loans are further classified by other relevant attributes, such as collateral type, lien position, occupancy status, amortization method, and balance size. Commercial classes are additionally segmented by risk rating, and mortgage and installment loan classes by credit score tier, which are updated at least semi-annually.

We utilize a discounted cash flow (“DCF”) model to estimate expected future losses for pooled loans. Expected future cash flows are developed from payment schedules over the contractual term, adjusted for forecasted default (probability of default), loss, and prepayment assumptions. We are not required to develop forecasts over the full contractual term of the financial asset or group of financial assets. Rather, for periods beyond which we are able to make or obtain R&S forecasts of expected credit losses, we revert to the long term average on a straight line or immediate basis, as determined by our CECL Forecast Committee, and which may vary depending on the economic outlook and uncertainty.

The DCF model for the mortgage and installment pooled loan segments includes using probability of default (“PD”) assumptions that are derived through regression analysis with forecasted US unemployment levels by credit score tier. We review a composite forecast of approximately 50 analysts as well as the Federal Open Market Committee (“FOMC”) projections in setting the unemployment forecast for the R&S period. The current ACL utilizes a one year R&S forecast followed by immediate reversion to the 30 year average unemployment rate. PD assumptions for the remaining segments are based primarily on historical rates by risk metric as defaults were not strongly correlated with any economic indicator. Loss given default (“LGD”) assumptions for the mortgage loan segment are based on a two year forecast followed by a two year straight line reversion period to the longer term average, while LGD rates for the remaining segments are the historical average for the entire period. Prepayment assumptions represent average rates per segment for a period determined by the CECL Forecast Committee and as calculated through the Bank’s Asset and Liability Management program.

Pooled reserves for the commercial loan segment are calculated using the DCF model with assumptions generally based on historical averages by class and risk rating. Effective risk rating practices allow for strong predictability of defaults and losses over the portfolio’s expected shorter duration, relative to mortgage and installment loans. Our rating system is similar to those employed by state and federal banking regulators.

The third ACL element (additional allocations based on subjective factors) is based on factors that cannot be associated with a specific credit or loan category and reflects our attempt to ensure that the overall ACL appropriately reflects a margin for the imprecision necessarily inherent in the estimates of expected credit losses. We adjust our quantitative model for certain qualitative factors to reflect the extent to which management expects current conditions and R&S forecasts to differ from the conditions that existed for the period over which historical information was evaluated. The qualitative framework reflects changes related to relevant data, such as changes in asset quality trends, portfolio growth and composition, national and local economic factors, credit policy and administration and other factors not considered in the base quantitative model. We utilize a survey completed by business unit management throughout the Bank, as well as discussion with the CECL Forecast Committee to establish reserves under the qualitative framework. The current period’s ACL further recognizes inherent risk related to the ongoing COVID-19 pandemic; specifically to commercial loans in high risk industries and mortgage and installment borrowers with occupations in those high risk industries. Identified high risk industries include: food service, hospitality, entertainment, retail, investment real estate, assisted living, and non-owner occupied office.

Prior to January 1, 2021, the calculation of the allowance was based on the probable incurred loss methodology.

Increases in the ACL are recorded by a provision for credit losses charged to expense. Although we periodically allocate portions of the ACL to specific loans and loan portfolios, the entire ACL is available for losses.

We generally charge-off commercial, homogenous residential mortgage and installment loans when they are deemed uncollectible or reach a predetermined number of days past due based on loan product, industry practice and other factors. Collection efforts may continue and recoveries may occur after a loan is charged against the ACL.

While we use relevant information to recognize losses on loans, additional provisions for related losses may be necessary based on changes in economic conditions, customer circumstances and other credit risk factors.

Section 4013 of the Coronavirus Aid, Relief, and Economic Security (“CARES Act”) provides temporary relief from the accounting and reporting requirements for troubled debt restructurings (“TDR”) regarding certain loan modifications for our customers. Section 4013 specified that COVID-19 related modifications on loans that were current as of December 31, 2019 are not TDRs. The provisions of Section 4013 were extended to the earlier of 60 days after the termination of the national emergency that was previously declared on March 13, 2020 or January 1, 2022 by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act which was signed into law on December 27, 2020. Loans not covered under these provisions, which have been modified resulting in a concession, and which the borrower is experiencing financial difficulties, are considered to be TDRs. We measure our investment in a TDR loan using one of three methods: the loan’s observable market price, the fair value of the collateral or the present value of expected future cash flows discounted at the loan’s effective interest rate. Large groups of smaller balance homogeneous loans, such as those loans included in each installment and mortgage loan class, are collectively evaluated and accordingly, they are not separately identified for disclosure. TDR loans are measured at the present value of estimated future cash flows using the loan’s effective interest rate at inception of the loan. If a TDR is considered to be a collateral dependent loan, the loan is reported net, at the fair value of collateral. A loan can be removed from TDR status if it is subsequently restructured and the borrower is no longer experiencing financial difficulties and the newly restructured agreement does not contain any concessions to the borrower. The new agreement must specify market terms, including a contractual interest rate not less than a market interest rate for a new loan with similar credit risk characteristics, and other terms no less favorable to us than those we would offer for a similar new loan.

PROPERTY AND EQUIPMENT — Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation and amortization is computed using the straight-line method over the estimated useful lives of the related assets. Buildings are generally depreciated over a period not exceeding 39 years and equipment is generally depreciated over periods not exceeding 7 years. Leasehold improvements are depreciated over the shorter of their estimated useful life or lease period.

BANK OWNED LIFE INSURANCE — We have purchased a group flexible premium non-participating variable life insurance contract on approximately 260 lives (who were salaried employees at the time we purchased the contract) in order to recover the cost of providing certain employee benefits. Bank owned life insurance is recorded at its cash surrender value or the amount that can be currently realized.

OTHER REAL ESTATE AND REPOSSESSED ASSETS — Other real estate at the time of acquisition is recorded at fair value, less estimated costs to sell, which becomes the property’s new basis. Fair value is typically determined by a third party appraisal of the property. Any write-downs at date of acquisition are charged to the ACL. Expense incurred in maintaining other real estate and subsequent write-downs to reflect declines in value and gains or losses on the sale of other real estate are recorded in non-interest expense in the Consolidated Statements of Operations. Non-real estate repossessed assets are treated in a similar manner.

OTHER INTANGIBLES — Other intangible assets consist of core deposits. They are initially measured at fair value and then are amortized on both straight-line and accelerated methods over their estimated useful lives, which range from 10 to 15 years.

GOODWILL — Goodwill arises from business combinations and is generally determined as the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill acquired in a purchase business combination and determined to have an indefinite useful life is not amortized, but tested for impairment at least annually or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. We have selected December 31 as the date to perform the annual impairment test. Goodwill is the only intangible asset with an indefinite life on our Consolidated Statements of Financial Condition.

INCOME TAXES — We employ the asset and liability method of accounting for income taxes. This method establishes deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities at tax rates expected to be in effect when such amounts are realized or settled. Under this method, the effect of a change in tax rates is recognized in the period that includes the enactment date. The deferred tax asset is subject to a valuation allowance for that portion of the asset for which it is more likely than not that it will not be realized.

A tax position is recognized as a benefit only if it is ‘‘more likely than not’’ that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination.

We recognize interest and/or penalties related to income tax matters in income tax expense in the Consolidated Statements of Operations.

We file a consolidated federal income tax return. Intercompany tax liabilities are settled as if each subsidiary filed a separate return.

COMMITMENTS TO EXTEND CREDIT AND RELATED FINANCIAL INSTRUMENTS — Financial instruments may include commitments to extend credit and standby letters of credit. Financial instruments involve varying degrees of credit and interest-rate risk in excess of amounts reflected in the Consolidated Statements of Financial Condition. Exposure to credit risk in the event of non-performance by the counterparties to the financial instruments for loan commitments to extend credit and letters of credit is represented by the contractual amounts of those instruments. In general, we use a similar methodology to estimate our liability for these off-balance sheet credit exposures as we do for our ACL. For commercial related commitments, we estimate liability using our loan rating system and for mortgage and installment commitments we estimate liability principally upon historical loss experience. Our estimated liability for off balance sheet commitments is included in accrued expenses and other liabilities in our Consolidated Statements of Financial Condition and any charge or recovery is recorded in non-interest expense – costs related to unfunded lending commitments in our Consolidated Statements of Operations.

DERIVATIVE FINANCIAL INSTRUMENTS — We record derivatives on our Consolidated Statements of Financial Condition as assets and liabilities measured at their fair value. The accounting for increases and decreases in the value of derivatives depends upon the use of derivatives and whether the derivatives qualify for hedge accounting.

At the inception of the derivative we designate the derivative as one of three types based on our intention and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (‘‘Fair Value Hedge’’), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (‘‘Cash Flow Hedge’’), or (3) an instrument with no hedging designation. For a Fair Value Hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in interest income in our Consolidated Statements of Operations. For a Cash Flow Hedge, the gain or loss on the derivative is reported in other comprehensive income (loss) and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For instruments with no hedging designation, the gain or loss on the derivative is reported in earnings. These free standing instruments currently consist of (i) mortgage banking related derivatives and include rate-lock loan commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and mandatory forward commitments for the future delivery of these mortgage loans, (ii) certain pay-fixed and pay-variable interest rate swap agreements related to commercial loan customers, (iii) certain purchased and written options related to a time deposit product and (iv) swaption agreement related to certain construction loans held for sale. The fair value of rate-lock mortgage loan commitments is based on agency cash window loan pricing for comparable assets and the fair value of mandatory commitments to sell mortgage loans is based on mortgage backed security pricing for comparable assets. We enter into mandatory forward commitments for the future delivery of mortgage loans generally when interest rate locks are entered into in order to hedge the change in interest rates resulting from our commitments to fund the loans. Changes in the fair values of these derivatives are included in net gains on mortgage loans in the Consolidated Statements of Operations. Fair values of the pay-fixed and pay-variable interest rate swap agreements are derived from proprietary models which utilize current market data and are included in net interest income in the Consolidated Statements of Operations. Fair values of the purchased and written options are based on prices of financial instruments with similar characteristics and are included in net interest income in the Consolidated Statements of Operations. Fair values of swaption agreements are derived from proprietary models which utilize current market data and are included in net gains on mortgage loans in the Consolidated Statements of Operations.

Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest expense in the Consolidated Statements of Operations. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income (mortgage banking related derivatives) or net interest income (interest rate swap agreements and options) in the Consolidated Statements of Operations. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged.

We formally document the relationship between derivatives and hedged items, as well as the risk- management objective and the strategy for undertaking hedge transactions, at the inception of the hedging relationship. This documentation includes linking Fair Value or Cash Flow Hedges to specific assets and liabilities on the Consolidated Statements of Financial Condition or to specific firm commitments or forecasted transactions. We discontinue hedge accounting when it is determined that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded in earnings. When a Fair Value Hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a Cash Flow Hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income (loss) are amortized into earnings over the same periods which the hedged transactions will affect earnings.

COMPREHENSIVE INCOME — Comprehensive income consists of net income and unrealized gains and losses, net of tax, on securities available for sale and derivative instruments classified as cash flow hedges.

NET INCOME PER COMMON SHARE — Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period and participating share awards. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. For diluted net income per common share, net income is divided by the weighted average number of common shares outstanding during the period plus the assumed exercise of stock options, restricted stock units, performance share units and stock units for a deferred compensation plan for non-employee directors.

SHARE BASED COMPENSATION — Cost is recognized for non-vested share awards issued to employees based on the fair value of these awards at the date of grant. A simulation analysis which considers potential outcomes for a large number of independent scenarios is utilized to estimate the fair value of performance share units and the market price of our common stock at the date of grant is used for other non-vested share awards. Cost is recognized over the required service period, generally defined as the vesting period. Forfeitures are recognized as they occur. Cost is also recognized for stock issued to non-employee directors. These shares vest immediately and cost is recognized during the period they are issued.

COMMON STOCK — At December 31, 2021, 0.1 million shares of common stock were reserved for issuance under the dividend reinvestment plan and 0.8 million shares of common stock were reserved for issuance under our long-term incentive plans.

RECLASSIFICATION — Certain amounts in the 2020 and 2019 consolidated financial statements have been reclassified to conform to the 2021 presentation.

ADOPTION OF NEW ACCOUNTING STANDARDS — In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, ‘‘Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments’’. This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This ASU:

•

Replaces the existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost, which will reflect our estimate of credit losses over the full remaining expected life of the financial assets and will consider expected future changes in macroeconomic conditions.

•

Eliminates existing guidance for purchase credit impaired (‘‘PCI’’) loans, and requires recognition of the nonaccretable difference as an increase to the allowance for expected credit losses on financial assets purchased with more than insignificant credit deterioration since origination, which will be offset by an increase in the recorded investment of the related loans.

•	Requires inclusion of expected recoveries, limited to the cumulative amount of prior write-offs, when estimating the ACL for in scope financial assets (including collateral dependent assets).

•

Amends existing impairment guidance for securities available for sale to incorporate an allowance, which will allow for reversals of credit impairments in the event that the credit of an issuer improves. Credit losses on securities available for sale are limited to the amount of the decline in fair value regardless of what the credit loss model would show for impairment.

•	Generally requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption.

We were originally required to adopt this ASU on January 1, 2020 but section 4014 of the CARES Act allowed for temporary relief from applying this ASU. Under the amended CARES Act we were allowed to delay the adoption of this ASU until the earlier of the termination of the national emergency that was declared on March 13, 2020, or January 1, 2022. Early adoption was also allowed on either January 1, 2020 or January 1, 2021. As such, we chose to delay the adoption of this ASU during 2020 and adopted this ASU on January 1, 2021. Results for the reporting periods after January 1, 2021 are presented under this new ASU while prior period amounts continue to be reported in accordance with previously applicable accounting guidance.

We adopted this ASU using the modified retrospective method for all financial assets measured at amortized cost and unfunded lending commitments. As of January 1, 2021 we increased the ACL by $11.7 million which was primarily driven by the longer contractual maturities of our mortgage and installment loan portfolio segments. In addition, we increased the allowance for losses related to unfunded loan commitments by $1.5 million. As of January 1, 2021, we recorded a cumulative-effect adjustment, net of tax, of $10.3 million to decrease retained earnings.

Based on our evaluation of securities available for sale, we did not record an ACL on these securities under this ASU.

We adopted this ASU using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”) that were previously classified as PCI and accounted for under accounting standards codification (“ASC”) 310-30. In accordance with this ASU, we did not reassess whether PCI assets met the definition of PCD assets as of the date of adoption. On January 1, 2021, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $0.13 million to the ACL for loans. The remaining noncredit discount in the amount of $0.34 million (based on the adjusted amortized cost basis) will be accreted into interest income at the effective interest rate as of January 1, 2021.

The impact of the adoption of this ASU follows:

	As Reported Under ASU 2016-13			Pre-ASU 2016-13 Adoption			Impact of ASU 2016-13
				(In thousands)
Assets
Loans
Commercial	$	1,242,510		$	1,242,415		$	95
Mortgage		1,015,944			1,015,926			18
Installment		475,358			475,337			21
Total loans		2,733,812			2,733,678			134
Allowance for credit losses		(47,137	)		(35,429	)		(11,708	)
Net loans	$	2,686,675		$	2,698,249		$	(11,574	)
Deferred tax assets (1)	$	3,015		$	275		$	2,740
Total Assets	$	4,195,179		$	4,204,013		$	(8,834	)

Liabilities and shareholders’ equity
Allowance for credit losses on unfunded lending commitments (2)	$	3,274		$	1,805		$	1,469
Total liabilities	$	3,815,960		$	3,814,491		$	1,469
Retained earnings	$	29,842		$	40,145		$	(10,303	)
Total shareholders’ equity	$	379,219		$	389,522		$	(10,303	)
Total liabilities and shareholders’ equity	$	4,195,179		$	4,204,013		$	(8,834	)

(1)	Included in Accrued income and other assets in our Consolidated Statements of Financial Condition.

(2)	Included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition.

In March 2020, the FASB issued ASU 2020-04, ‘‘Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting’’. This new ASU provides temporary optional expedients and exceptions to GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. Entities can elect not to apply certain modification accounting requirements to contracts affected by reference rate reform, if certain criteria are met. Entities that make such elections would not have to remeasure contracts at the modification date or reassess a previous accounting determination. Entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform, if certain criteria are met.

We have formed a cross-functional project team to lead this transition from LIBOR to a planned adoption of reference rates which could include Secured Overnight Financing Rate (“SOFR”), amongst others. We are utilizing the timeline guidance published by the Alternative Reference Rates Committee to develop and achieve internal milestones during this transitional period. We have discontinued the use of new LIBOR-based loans and interest rate derivatives as of December 31, 2021, according to regulatory guidelines. The amended guidance under Topic 848 and our ability to elect its temporary optional expedients and exceptions are effective for us through December 31, 2022. We expect to adopt the LIBOR transition relief allowed under this standard.

RESTRICTIONS ON CASH AND DUE FROM BANKS	12 Months Ended
RESTRICTIONS ON CASH AND DUE FROM BANKS	Dec. 31, 2021
RESTRICTIONS ON CASH AND DUE FROM BANKS [Abstract]
RESTRICTIONS ON CASH AND DUE FROM BANKS	NOTE 2 – RESTRICTIONS ON CASH AND DUE FROM BANKS During March 2020 the FRB, in response to the COVID-19 pandemic, reduced our Bank’s reserve balance requirements to zero. Prior to that time our Bank was required to maintain reserve balances in the form of vault cash and balances with the FRB. The average reserve balances to be maintained during 2021 and 2020 were zero and $9.2 million, respectively. We do not maintain compensating balances with correspondent banks. We may also be required to maintain reserve balances related to certain mortgage banking related derivatives not classified as hedges. These balances are held at unrelated financial institutions and totaled zero and $0.74 million at December 31, 2021 and 2020, respectively.

SECURITIES

12 Months Ended

Dec. 31, 2021

SECURITIES [Abstract]

SECURITIES

NOTE 3 – SECURITIES

Securities available for sale consist of the following at December 31:

	Amortized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
2021
U.S. agency	$	34,634	$	152	$	112	$	34,674
U.S. agency residential mortgage-backed		309,907		1,952		3,874		307,985
U.S. agency commercial mortgage-backed		23,066		84		224		22,926
Private label mortgage-backed		102,480		807		672		102,615
Other asset backed		215,235		1,204		269		216,170
Obligations of states and political subdivisions		568,355		9,942		2,221		576,076
Corporate		148,707		2,446		1,194		149,959
Trust preferred		1,975		-		56		1,919
Foreign government		499		7		-		506
Total	$	1,404,858	$	16,594	$	8,622	$	1,412,830

2020
U.S. agency	$	10,456	$	305	$	13	$	10,748
U.S. agency residential mortgage-backed		340,224		4,951		593		344,582
U.S. agency commercial mortgage-backed		6,869		326		-		7,195
Private label mortgage-backed		41,429		1,539		139		42,829
Other asset backed		252,596		1,796		211		254,181
Obligations of states and political subdivisions		315,780		8,691		178		324,293
Corporate		82,307		3,807		97		86,017
Trust preferred		1,971		-		173		1,798
Foreign government		500		16		-		516
Total	$	1,052,132	$	21,431	$	1,404	$	1,072,159

Our investments’ gross unrealized losses and fair values aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position, at December 31 follows:

	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
2021
U.S. agency	$	11,986	$	109	$	1,286	$	3	$	13,272	$	112
U.S. agency residential mortgage-backed		171,398		3,555		19,024		319		190,422		3,874
U.S. agency commercial mortgage-backed		19,900		224		-		-		19,900		224
Private label mortgage-backed		64,408		640		2,180		32		66,588		672
Other asset backed		86,581		248		978		21		87,559		269
Obligations of states and political subdivisions		178,484		2,151		7,093		70		185,577		2,221
Corporate		75,166		1,150		1,050		44		76,216		1,194
Trust preferred		-		-		1,919		56		1,919		56
Total	$	607,923	$	8,077	$	33,530	$	545	$	641,453	$	8,622

2020
U.S. agency	$	1,469	$	3	$	2,329	$	10	$	3,798	$	13
U.S. agency residential mortgage-backed		96,839		592		83		1		96,922		593
Private label mortgage-backed		11,838		95		2,050		44		13,888		139
Other asset backed		7,142		25		21,197		186		28,339		211
Obligations of states and political subdivisions		28,957		177		800		1		29,757		178
Corporate		1,924		97		-		-		1,924		97
Trust preferred		-		-		1,798		173		1,798		173
Total	$	148,169	$	989	$	28,257	$	415	$	176,426	$	1,404

Securities available for sale in unrealized loss positions are evaluated quarterly for impairment related to credit losses. For securities available for sale in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that we will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For securities available for sale that do not meet this criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, adverse conditions specifically related to the security and the issuer and the impact of changes in market interest rates on the market value of the security, among other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an ACL is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income (loss), net of applicable taxes. No ACL for securities available for sale was needed at December 31, 2021. Accrued interest receivable on securities available for sale totaled $6.0 million at December 31, 2021, is excluded from the estimate of credit losses and is included in accrued income and other assets in the Consolidated Statements of Financial Condition.

U.S. agency, U.S. agency residential mortgage-backed and U.S. agency commercial mortgage backed securities — at December 31, 2021, we had 19 U.S. agency, 67 U.S. agency residential mortgage-backed and 23 U.S. agency commercial mortgage-backed securities whose fair value is less than amortized cost. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies, and have a long history of no credit losses. The unrealized losses are largely attributed to widening spreads to Treasury bonds and/or an increase in interest rates since acquisition.

Private label mortgage backed, other asset backed and corporate securities — at December 31, 2021, we had 49 private label mortgage backed, 51 other asset backed and 57 corporate securities whose fair value is less than amortized cost. The unrealized losses are primarily due to credit spread widening and/or an increase in interest rates since acquisition.

Obligations of states and political subdivisions — at December 31, 2021, we had 281 municipal securities whose fair value is less than amortized cost. The unrealized losses are primarily due to an increase in interest rates since acquisition.

Trust preferred securities — at December 31, 2021, we had two trust preferred securities whose fair value is less than amortized cost. Both of our trust preferred securities are single issue securities issued by a trust subsidiary of a bank holding company. The pricing of trust preferred securities has suffered from credit spread widening. One of the securities is rated by a major rating agency as investment grade while the other one is non-rated. The non-rated issue is a relatively small bank and was never rated. The issuer of this non-rated trust preferred security, which had a total amortized cost of $1.0 million and total fair value of $0.96 million as of December 31, 2021, continues to have satisfactory credit metrics and make interest payments.

At December 31, 2021 management does not intend to liquidate any of the securities discussed above and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses.

We recorded no credit related charges in our Consolidated Statements of Operations related to securities available for sale during 2021, 2020, and 2019.

The amortized cost and fair value of securities available for sale at December 31, 2021, by contractual maturity, follow:

	Amortized Cost		Fair Value
	(In thousands)
Maturing within one year	$	13,874	$	13,991
Maturing after one year but within five years		133,681		134,901
Maturing after five years but within ten years		266,057		266,282
Maturing after ten years		340,558		347,960
		754,170		763,134
U.S. agency residential mortgage-backed		309,907		307,985
U.S. agency commercial mortgage-backed		23,066		22,926
Private label mortgage-backed		102,480		102,615
Other asset backed		215,235		216,170
Total	$	1,404,858	$	1,412,830

The actual maturity may differ from the contractual maturity because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

A summary of proceeds from the sale of securities available for sale and gains and losses for the years ended December 31 follow:

			Realized
	Proceeds		Gains		Losses
	(In thousands)
2021	$	85,371	$	1,475	$	64
2020		38,095		271		4
2019		68,716		248		108

Certain preferred stocks which were sold during 2019 had been classified as equity securities at fair value in our Consolidated Statement of Financial Condition. During 2019 we recognized gains on these preferred stocks of $0.17 million that are included in net gains on securities in the Consolidated Statements of Operations.

Securities available for sale with a book value of $10.5 million and $14.0 million at December 31, 2021 and 2020, respectively, were pledged to secure borrowings, derivatives, public deposits and for other purposes as required by law. There were no investment obligations of state and political subdivisions that were payable from or secured by the same source of revenue or taxing authority that exceeded 10% of consolidated total shareholders’ equity at December 31, 2021 or 2020.

LOANS

12 Months Ended

Dec. 31, 2021

LOANS [Abstract]

LOANS

NOTE 4 – LOANS

Our loan portfolios at December 31 follow:

	2021		2020
	(In thousands)
Real estate (1)
Residential first mortgages	$	870,169	$	792,762
Residential home equity and other junior mortgages		128,801		138,128
Construction and land development		278,992		232,693
Other (2)		726,224		669,150
Consumer		339,785		468,090
Commercial		555,696		429,011
Agricultural		5,378		3,844
Total loans	$	2,905,045	$	2,733,678

(1)	Includes both residential and non-residential commercial loans secured by real estate.

(2)	Includes loans secured by multi-family residential and non-farm, non-residential property.

Loans include net deferred loan costs of $22.4 million and $14.6 million at December 31, 2021 and 2020, respectively.

During 2021, we sold $9.6 million of portfolio residential fixed rate mortgage loans servicing retained into the secondary market and recognized a gain on sale of $0.45 million. During 2020, we securitized $26.3 million of portfolio residential fixed rate mortgage loans servicing retained with Freddie Mac and recognized a gain on sale of $0.72 million. We also sold $2.4 million of portfolio residential fixed rate mortgage loans servicing retained into the secondary market and recognized a gain on sale of $0.07 million. During 2019, we sold $40.6 million of residential adjustable rate mortgage loans servicing released to another financial institution and recognized a gain on sale of $0.01 million. We also securitized $65.1 million of portfolio residential fixed rate mortgage loans servicing retained with Freddie Mac and recognized a gain on sale of $1.7 million. In addition, we sold $9.9 million of residential fixed and adjustable rate portfolio mortgage loans servicing retained to another financial institution and recognized a gain on sale of $0.07 million. These loan sale transactions were done primarily for asset/liability management purposes.

An analysis of the ACL by portfolio segment for the years ended December 31 follows:

	Commercial			Mortgage			Installment			Subjective Allocation			Total
	(In thousands)
2021
Balance at beginning of period	$	7,401		$	6,998		$	1,112		$	19,918		$	35,429
Additions (deductions)
Impact of adoption of CECL		2,551			12,000			3,052			(6,029	)		11,574
Provision for credit losses		(1,135	)		(266	)		599			(1,126	)		(1,928	)
Initial allowance on loans purchased with credit deterioration		95			18			21			-			134
Recoveries credited to allowance		2,607			846			1,024			-			4,477
Loans charged against the allowance		-			(375	)		(2,059	)		-			(2,434	)
Balance at end of period	$	11,519		$	19,221		$	3,749		$	12,763		$	47,252

2020
Balance at beginning of period	$	7,922		$	8,216		$	1,283		$	8,727	$	26,148
Additions (deductions)
Provision for credit losses (1)		1,751			(915	)		436			11,191		12,463
Recoveries credited to allowance		1,804			513			752			-		3,069
Loans charged against the allowance		(4,076	)		(816	)		(1,359	)		-		(6,251	)
Balance at end of period	$	7,401		$	6,998		$	1,112		$	19,918	$	35,429

2019
Balance at beginning of period	$	7,090		$	7,978		$	895		$	8,925		$	24,888
Additions (deductions)
Provision for credit losses (1)		(651	)		526			1,147			(198	)		824
Recoveries credited to allowance		2,165			933			863			-			3,961
Loans charged against the allowance		(682	)		(1,221	)		(1,622	)		-			(3,525	)
Balance at end of period	$	7,922		$	8,216		$	1,283		$	8,727		$	26,148

(1)	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

The allocation of the ACL by portfolio segment at December 31 follows:

	2021					2020
	Allowance for Credit Losses Amount		Percent of Loans to Total Portfolio Loans			Allowance for Credit Losses Amount (1)		Percent of Loans to Total Portfolio Loans
	(Dollars in thousands)
Commercial	$	11,519		41.5	%	$	7,401		45.4	%
Mortgage		19,221		39.2			6,998		37.2
Installment		3,749		19.3			1,112		17.4
Subjective allocation		12,763		-			19,918		-
Total	$	47,252		100.0	%	$	35,429		100.0	%

(1)	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

ACL and recorded investment in loans by portfolio segment at December 31, 2020 follows (1):

	Commercial		Mortgage		Installment		Subjective Allocation		Total
	(In thousands)
December 31, 2020
ACL:
Individually evaluated for impairment	$	1,266	$	4,124	$	191	$	-	$	5,581
Collectively evaluated for impairment		6,135		2,874		921		19,918		29,848
Loans acquired with deteriorated credit quality		-		-		-		-		-
Total ending ACL	$	7,401	$	6,998	$	1,112	$	19,918	$	35,429

Loans
Individually evaluated for impairment	$	9,431	$	39,245	$	1,996			$	50,672
Collectively evaluated for impairment		1,236,052		980,449		474,379				2,690,880
Loans acquired with deteriorated credit quality		468		410		147				1,025
Total loans recorded investment		1,245,951		1,020,104		476,522				2,742,577
Accrued interest included in recorded investment		3,536		4,178		1,185				8,899
Total loans	$	1,242,415	$	1,015,926	$	475,337			$	2,733,678

(1)	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

Loans on non-accrual status and past due more than 90 days (‘‘Non-performing Loans’’) at December 31 follow:

	December 31, 2021
	Non- Accrual with no Allowance for Credit Loss		Non- Accrual with an Allowance for Credit Loss		Total Non- Accrual		90+ and Still Accruing		Total Non- Performing Loans		December 31, 2020 Total Non- Performing Loans (1)
	(In thousands)
Commercial
Commercial and industrial (2)	$	-	$	15	$	15	$	-	$	15	$	1,387
Commercial real estate		-		-		-		-		-		-
Mortgage
1-4 family owner occupied - jumbo		607		-		607		-		607		623
1-4 family owner occupied - non-jumbo (3)		137		1,815		1,952		-		1,952		2,281
1-4 family non-owner occupied		275		592		867		-		867		1,112
1-4 family - 2nd lien		182		681		863		-		863		1,344
Resort lending		118		119		237		-		237		607
Installment
Boat lending		-		210		210		-		210		52
Recreational vehicle lending		-		177		177		-		177		74
Other		-		182		182		-		182		393
Total	$	1,319	$	3,791	$	5,110	$	-	$	5,110	$	7,873

Accrued interest excluded from total	$	-	$	-	$	-	$	-	$	-	$	-

(1)	Non-performing loans exclude purchase credit impaired loans.

(2)	Non-performing commercial and industrial loans exclude $0.047 million and $0.053 million of government guaranteed loans at December 31, 2021 and 2020, respectively.

(3)	Non-performing 1-4 family owner occupied – non jumbo loans exclude $0.388 million and $0.386 million of government guaranteed loans at December 31, 2021 and 2020, respectively.

If non-performing loans had continued to accrue interest in accordance with their original terms, approximately $0.2 million, $0.5 million and $0.4 million of interest income would have been recognized in each of the years ended 2021, 2020 and 2019, respectively. Interest income recorded on these loans was approximately zero during each of the years ended 2021, 2020 and 2019.

The following table provides collateral information by class of loan for collateral-dependent loans with a specific reserve. A loan is considered to be collateral dependent when the borrower is experiencing financial difficulty and the repayment is expected to be provided substantially through the operation or sale of collateral.

The amortized cost of collateral-dependent loans by class follows:

	Collateral Type				Allowance
	Real				for
	Estate		Other		Credit Losses
	(In thousands)
December 31, 2021
Commercial
Commercial and industrial	$	80	$	245	$	51
Commercial real estate		84		-		19
Mortgage
1-4 family owner occupied - jumbo		607		-		-
1-4 family owner occupied - non-jumbo		940		-		286
1-4 family non-owner occupied		477		-		72
1-4 family - 2nd lien		370		-		67
Resort lending		237		-		42
Installment
Boat lending		-		80		29
Recreational vehicle lending		-		121		44
Other		-		70		25
Total	$	2,795	$	516	$	635

Accrued interest excluded from total	$	-	$	1

An aging analysis of loans by class at December 31 follows:

	Loans Past Due								Loans not		Total
	30-59 days		60-89 days		90+ days		Total		Past Due		Loans
	(In thousands)
2021
Commercial
Commercial and industrial	$	-	$	2	$	62	$	64	$	593,048	$	593,112
Commercial real estate		-		-		-		-		610,469		610,469
Mortgage
1-4 family owner occupied - jumbo		-		-		607		607		540,416		541,023
1-4 family owner occupied - non-jumbo		774		408		657		1,839		264,571		266,410
1-4 family non-owner occupied		87		26		462		575		194,277		194,852
1-4 family - 2nd lien		422		60		289		771		87,958		88,729
Resort lending		-		-		237		237		48,408		48,645
Installment
Boat lending		438		28		52		518		227,622		228,140
Recreational vehicle lending		377		65		120		562		234,183		234,745
Other		252		57		49		358		98,562		98,920
Total	$	2,350	$	646	$	2,535	$	5,531	$	2,899,514	$	2,905,045
Accrued interest excluded from total	$	25	$	9	$	-	$	34	$	6,802	$	6,836

2020
Commercial
Commercial and industrial	$	5,003	$	131	$	70	$	5,204	$	671,115	$	676,319
Commercial real estate		2,600		-		-		2,600		567,032		569,632
Mortgage
1-4 family owner occupied - jumbo		761		-		623		1,384		438,794		440,178
1-4 family owner occupied - non-jumbo		1,888		453		502		2,843		264,730		267,573
1-4 family non-owner occupied		1,184		139		476		1,799		157,977		159,776
1-4 family - 2nd lien		710		228		732		1,670		92,860		94,530
Resort lending		32		195		358		585		57,462		58,047
Installment
Boat lending		95		101		-		196		207,317		207,513
Recreational vehicle lending		207		37		48		292		169,282		169,574
Other		337		162		199		698		98,737		99,435
Total recorded investment	$	12,817	$	1,446	$	3,008	$	17,271	$	2,725,306	$	2,742,577
Accrued interest included in recorded investment	$	147	$	22	$	-	$	169	$	8,730	$	8,899

Impaired loans at December 31, 2020 are as follows (1):

	2020
	(In thousands)
Impaired loans with no allocated ACL
TDR	$	93
Non - TDR		1,367
Impaired loans with an allocated ACL
TDR - allowance based on collateral		9,027
TDR - allowance based on present value cash flow		37,953
Non - TDR - allowance based on collateral		1,873
Total impaired loans	$	50,313

Amount of ACL allocated (1)
TDR - allowance based on collateral	$	1,058
TDR - allowance based on present value cash flow		3,755
Non - TDR - allowance based on collateral		768
Total amount of ACL allocated	$	5,581

(1)	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

Impaired loans by class as of December 31, 2020 are as follows (1):

	2020
	Recorded Investment		Unpaid Principal Balance		Related ACL (1)
	(In thousands)
With no related ACL recorded:
Commercial
Commercial and industrial	$	77	$	80	$	-
Commercial real estate		-		-		-
Mortgage
1-4 family owner occupied - jumbo		623		629		-
1-4 family owner occupied - non-jumbo		-		-		-
1-4 family non-owner occupied		305		473		-
1-4 family - 2nd lien		301		304		-
Resort lending		154		379		-
Installment
Boat lending		-		-		-
Recreational vehicle lending		-		-		-
Other		-		-		-
		1,460		1,865		-

With an ACL recorded:
Commercial
Commercial and industrial		2,227		2,370		756
Commercial real estate		7,127		7,096		510
Mortgage
1-4 family owner occupied - jumbo		506		880		50
1-4 family owner occupied - non-jumbo		21,655		22,311		2,300
1-4 family non-owner occupied		4,335		4,704		495
1-4 family - 2nd lien		811		829		200
Resort lending		10,555		10,764		1,079
Installment
Boat lending		7		11		2
Recreational vehicle lending		87		100		19
Other		1,902		2,040		170
		49,212		51,105		5,581
Total
Commercial
Commercial and industrial		2,304		2,450		756
Commercial real estate		7,127		7,096		510
Mortgage
1-4 family owner occupied - jumbo		1,129		1,509		50
1-4 family owner occupied - non-jumbo		21,655		22,311		2,300
1-4 family non-owner occupied		4,640		5,177		495
1-4 family - 2nd lien		1,112		1,133		200
Resort lending		10,709		11,143		1,079
Installment
Boat lending		7		11		2
Recreational vehicle lending		87		100		19
Other		1,902		2,040		170
Total	$	50,672	$	52,970	$	5,581

Accrued interest included in recorded investment	$	359

(1)	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

Average recorded investment in and interest income earned (of which the majority of these amounts were received in cash and related primarily to performing TDR’s) on impaired loans by class for the years ended December 31, 2020 and 2019 follows (1):

	2020				2019
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
With no related ACL recorded:
Commercial
Commercial and industrial	$	125	$	9	$	51	$	-
Commercial real estate		159		-		278		5
Mortgage
1-4 family owner occupied - jumbo		408		-		-		-
1-4 family owner occupied - non-jumbo		252		4		201		-
1-4 family non-owner occupied		308		10		123		-
1-4 family - 2nd lien		380		-		136		7
Resort lending		92		-		-		-
Installment
Boat lending		-		-		-		-
Recreational vehicle lending		-		-		-		-
Other		-		-		-		1
		1,724		23		789		13
With an a ACL recorded:
Commercial
Commercial and industrial		2,230		242		2,256		72
Commercial real estate		10,751		1,043		5,778		315
Mortgage
1-4 family owner occupied - jumbo		1,083		84		995		39
1-4 family owner occupied - non-jumbo		19,624		2,033		15,183		594
1-4 family non-owner occupied		4,664		375		2,874		291
1-4 family - 2nd lien		3,376		22		13,383		809
Resort lending		11,316		799		11,697		669
Installment
Boat lending		59		1		54		-
Recreational vehicle lending		81		4		22		-
Other		2,416		225		3,186		189
		55,600		4,828		55,428		2,978
Total
Commercial
Commercial and industrial		2,355		251		2,307		72
Commercial real estate		10,910		1,043		6,056		320
Mortgage
1-4 family owner occupied - jumbo		1,491		84		995		39
1-4 family owner occupied - non-jumbo		19,876		2,037		15,384		594
1-4 family non-owner occupied		4,972		385		2,997		291
1-4 family - 2nd lien		3,756		22		13,519		816
Resort lending		11,408		799		11,697		669
Installment
Boat lending		59		1		54		-
Recreational vehicle lending		81		4		22		-
Other		2,416		225		3,186		190
Total	$	57,324	$	4,851	$	56,217	$	2,991

(1)	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

Troubled debt restructurings at December 31 follow:

	2021
	Commercial		Retail (1)			Total
	(In thousands)
Performing TDR’s	$	4,481	$	31,589		$	36,070
Non-performing TDR’s (2)		-		1,016	⁽³⁾		1,016
Total	$	4,481	$	32,605		$	37,086

	2020
	Commercial		Retail (1)			Total
	(In thousands)
Performing TDR’s	$	7,956	$	36,385		$	44,341
Non-performing TDR’s (2)		1,148		1,584	⁽³⁾		2,732
Total	$	9,104	$	37,969		$	47,073

(1)	Retail loans include mortgage and installment loan portfolio segments.

(2)	Included in non-performing loans table above.

(3)	Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.

We have allocated $3.6 million and $4.8 million of reserves to customers whose loan terms have been modified in troubled debt restructurings as of December 31, 2021 and 2020, respectively. We have committed to lend additional amounts totaling up to $0.04 million and $0.07 million at December 31, 2021 and 2020, respectively, to customers with outstanding loans that are classified as troubled debt restructurings.

The terms of certain loans have been modified as troubled debt restructurings and generally included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for a new loan with similar risk; or a permanent reduction of the recorded investment in the loan.

Modifications involving a reduction of the stated interest rate of the loan have generally been for periods ranging from 9 months to 36 months but have extended to as much as 480 months in certain circumstances. Modifications involving an extension of the maturity date have generally been for periods ranging from 1 month to 60 months but have extended to as much as 230 months in certain circumstances.

Loans that have been classified as troubled debt restructurings during the years ended December 31 follow (1):

	Number of Contracts		Pre-modification Recorded Balance		Post-modification Recorded Balance

2020
Commercial
Commercial and industrial		7	$	1,207	$	1,207
Commercial real estate		4		7,012		7,012
Mortgage
1-4 family owner occupied - jumbo		-		-		-
1-4 family owner occupied - non-jumbo		5		357		374
1-4 family non-owner occupied		2		111		116
1-4 family - 2nd lien		2		44		46
Resort lending		-		-		-
Installment
Boat lending		-		-		-
Recreational vehicle lending		-		-		-
Other		4		91		93
Total		24	$	8,822	$	8,848

	Number of Contracts		Pre-modification Recorded Balance		Post-modification Recorded Balance
	(Dollars in thousands)

2019
Commercial
Commercial and industrial		8	$	1,609	$	1,609
Commercial real estate		3		1,479		1,479
Mortgage
1-4 family owner occupied - jumbo		-		-		-
1-4 family owner occupied - non-jumbo		2		478		483
1-4 family non-owner occupied		1		507		505
1-4 family - 2nd lien		3		75		75
Resort lending		-		-		-
Installment
Boat lending		-		-		-
Recreational vehicle lending		-		-		-
Other		7		188		191
Total		24	$	4,336	$	4,342

(1)	There were no TDR modifications during the year ended December 31, 2021. The loan modifications during 2020 in the table above did not qualify for relief from TDR accounting under the CARES Act.

The troubled debt restructurings described above increased the ACL by $0.04 million and $0.50 million during the years ended December 31, 2020 and 2019, respectively and resulted in charge offs of zero during each of the years ended December 31, 2020 and 2019, respectively.

A loan is generally considered to be in payment default once it is 90 days contractually past due under the modified terms for commercial loans and installment loans and when four consecutive payments are missed for mortgage loans.

There were no troubled debt restructurings that subsequently defaulted within twelve months following modification during 2021 and 2020. During 2019 we had one commercial and industrial loan with a recorded balance of $0.019 million and one 1-4 family owner occupied – non-jumbo loan with a recorded balance of $0.012 million that subsequently defaulted within twelve months following modification. These loans did not impact the ACL during 2019 and resulted in zero charge offs during 2019.

The terms of certain other loans were modified during the years ending December 31, 2021, 2020 and 2019 that did not meet the definition of a troubled debt restructuring. The modification of these loans could have included modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant.

In order to determine whether a borrower is experiencing financial difficulty, we perform an evaluation of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under our internal underwriting policy.

Non-TDR Loan Modifications and Paycheck Protection Program (“PPP”) due to COVID-19 - On March 22, 2020, the federal banking agencies issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus”. This guidance encourages financial institutions to work prudently with borrowers that may be unable to meet their contractual obligations because of the effects of COVID-19. The guidance goes on to explain that in consultation with the Financial Accounting Standards Board staff that the federal banking agencies conclude that short-term modifications (e.g. six months or less) made on a good faith basis to borrowers who were current (less than 30 days past due) as of the implementation date of a relief program are not TDRs. In addition, on March 27, 2020, the CARES Act was signed into law. Section 4013 of the CARES Act also addressed COVID-19 related modifications and specified that COVID-19 related modifications on loans that were current (less than 30 days past due) as of December 31, 2019 are not TDRs. We are assisting both commercial and retail (mortgage and installment) borrowers with reduced or suspended payments. Commercial loan accommodations are typically a three month interest-only period while retail loan (mortgage and installment) forbearances have primarily been payment suspensions for three months. For loans subject to these forbearance agreements each borrower is required to resume making regularly scheduled loan payments at the end of the forbearance period. The deferred principal and interest will be repaid based upon individualized agreements. Options for repayment include separate repayment plans, extending the term of the loan or re-amortizing the loan based upon the affordability of the payment in relationship to a reduced income. While some borrowers may elect to make a lump sum payment, we anticipate the majority will require some type of repayment plan. During the forbearance period, the loan will not be reported as past due in keeping with the guidance discussed previously.

A summary of COVID-19 accommodations that had been entered into under this guidance as of December 31, 2021 follows:

	COVID-19 Accomodations					Total		% of Total
Loan Category		Amounts (#)		Amounts ($)		Loans		Loans
	(Dollars in thousands)
Commercial			-	$	-	$	1,203,581		0.0	%
Mortgage			22		2,278		1,139,659		0.2	%
Installment			1		55		561,805		0.0	%
Total			23	$	2,333	$	2,905,045		0.1	%
Mortgage loans serviced for others(1)			46	$	5,163	$	3,323,521		0.2	%

1)	We have delegated authority from all investors to grant these deferrals on their behalf.

Information on subsequent COVID-19 accommodation extensions for portfolio loans follows (1):

Loan Category	Amount (#)		Amount ($)
	(Dollars in thousands)
Commercial		-	$	-
Mortgage		19		2,194
Installment		-		-
Total		19	$	2,194

(1)	Subsequent accommodations are extensions of the original accommodations that were given as summarized in the paragraph above.

The CARES Act also included an initial $349 billion loan program administered through the U.S. Small Business Administration (‘‘SBA’’) referred to as the PPP. Under the PPP, small businesses and other entities and individuals could apply for loans from existing SBA lenders and other approved regulated lenders that enrolled in the program, subject to numerous limitations and eligibility criteria. We are participating as a lender in the PPP. The PPP opened on April 3, 2020 intending to provide American small businesses with eight weeks of cash-flow assistance through 100% federally guaranteed loans through the SBA. In late April 2020 the Paycheck Protection Program and Health Care Enhancement Act, added another $310 billion in funding while the Paycheck Protection Program Flexibility Act made certain changes to the program, by allowing for more time to spend the funds, and making it easier to get a loan fully forgiven. The PPP initially closed on August 8, 2020 (“Round 1”). On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (‘‘Economic Aid Act’’) was signed into law which allocated an additional $284 billion in funding for the PPP (“Round 2”). The Economic Aid Act reopened the PPP through March 31, 2021 with generally the same terms and conditions as originally enacted under the CARES Act while clarifying eligibility and ineligibility for certain entities and expanding the permitted uses of PPP funds. In addition, the Economic Aid Act simplified the loan forgiveness process for PPP loans of $150,000 or less. The Economic Aid Act also established second draw loans for entities that had already used the initial PPP funds, subject to numerous limitations and eligibility criteria. PPP Round 2 loans are eligible for forgiveness similar to Round 1 PPP loans, subject to limitations set forth in the Economic Aid Act. Round 2 closed on May 31, 2021.

PPP loans outstanding at December 31 follows:

	2021				2020
	Amount (#)		Amount ($)		Amount (#)		Amount ($)
	(Dollars in thousands)
Closed and outstanding - Round 1 loans		6	$	197		1,483	$	169,782
Closed and outstanding - Round 2 loans		180		26,167		-		-
Total closed and outstanding		186	$	26,364		1,483	$	169,782
Unaccreted net fees remaining at period end			$	806			$	3,216

PPP loans are included in the commercial and industrial class of the commercial loan portfolio segment. As these loans are 100% guaranteed through the SBA the allowance for credit losses recorded on these loans is zero. PPP loans funded totaled $135.5 million, $261.1 million and zero during the years ended December 31, 2021, 2020 and 2019, respectively. Interest and fees on loans in our consolidated statement of operations includes $8.9 million, $5.6 million and zero during the years ended December 31, 2021, 2020 and 2019, respectively related to the accretion of net loan fees on PPP loans.

Credit Quality Indicators – As part of our on-going monitoring of the credit quality of our loan portfolios, we track certain credit quality indicators including (a) risk grade of commercial loans, (b) the level of classified commercial loans, (c) credit scores of mortgage and installment loan borrowers, and (d) delinquency history and non-performing loans.

For commercial loans, we use a loan rating system that is similar to those employed by state and federal banking regulators. Loans are graded on a scale of 1 to 12. A description of the general characteristics of the ratings follows:

Rating 1 through 6: These loans are generally referred to as our ‘‘non-watch’’ commercial credits that include very high or exceptional credit fundamentals through acceptable credit fundamentals.

Rating 7 and 8: These loans are generally referred to as our ‘‘watch’’ commercial credits. These ratings include loans to borrowers that exhibit potential credit weakness or downward trends. If not checked or cured these trends could weaken our asset or credit position. While potentially weak, no loss of principal or interest is envisioned with these ratings.

Rating 9: These loans are generally referred to as our ‘‘substandard accruing’’ commercial credits. This rating includes loans to borrowers that exhibit a well-defined weakness where payment default is probable and loss is possible if deficiencies are not corrected. Generally, loans with this rating are considered collectible as to both principal and interest primarily due to collateral coverage.

Rating 10 and 11: These loans are generally referred to as our ‘‘substandard - non-accrual’’ and ‘‘doubtful’’ commercial credits. These ratings include loans to borrowers with weaknesses that make collection of debt in full, on the basis of current facts, conditions and values at best questionable and at worst improbable. All of these loans are placed in non-accrual.

Rating 12: These loans are generally referred to as our ‘‘loss’’ commercial credits. This rating includes loans to borrowers that are deemed incapable of repayment and are charged-off.

The following table summarizes loan ratings by loan class for our commercial loan portfolio segment at December 31, 2021:

	Commercial
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized
	2021		2020		2019		2018		2017		Prior		Cost Basis		Total
	(In thousands)
December 31, 2021
Commercial and industrial
Non-watch (1-6)	$	121,917	$	69,856	$	56,984	$	44,827	$	38,307	$	96,261	$	144,579	$	572,731
Watch (7-8)		81		-		532		1,294		362		6,274		476		9,019
Substandard Accrual (9)		1,569		2		1,159		247		-		1,530		6,793		11,300
Non-Accrual (10-11)		-		-		-		-		-		62		-		62
Total	$	123,567	$	69,858	$	58,675	$	46,368	$	38,669	$	104,127	$	151,848	$	593,112
Accrued interest excluded from total	$	314	$	153	$	105	$	229	$	90	$	240	$	242	$	1,373

Commercial real estate
Non-watch (1-6)	$	123,330	$	55,479	$	108,056	$	75,828	$	39,123	$	160,199	$	31,551	$	593,566
Watch (7-8)		-		324		3,028		7,678		1,708		1,423		-		14,161
Substandard Accrual (9)		441		-		-		1,193		1,108		-		-		2,742
Non-Accrual (10-11)		-		-		-		-		-		-		-		-
Total	$	123,771	$	55,803	$	111,084	$	84,699	$	41,939	$	161,622	$	31,551	$	610,469
Accrued interest excluded from total	$	182	$	81	$	233	$	203	$	94	$	325	$	47	$	1,165

Total Commercial
Non-watch (1-6)	$	245,247	$	125,335	$	165,040	$	120,655	$	77,430	$	256,460	$	176,130	$	1,166,297
Watch (7-8)		81		324		3,560		8,972		2,070		7,697		476		23,180
Substandard Accrual (9)		2,010		2		1,159		1,440		1,108		1,530		6,793		14,042
Non-Accrual (10-11)		-		-		-		-		-		62		-		62
Total	$	247,338	$	125,661	$	169,759	$	131,067	$	80,608	$	265,749	$	183,399	$	1,203,581
Accrued interest excluded from total	$	496	$	234	$	338	$	432	$	184	$	565	$	289	$	2,538

The following table summarizes loan ratings by loan class for our commercial portfolio loan segment at December 31, 2020:

	Commercial
	Non-watch 1-6		Watch 7-8		Substandard Accrual 9		Non- Accrual 10-11		Total
					(In thousands)
December 31, 2020
Commercial and industrial	$	637,826	$	32,765	$	4,341	$	1,387	$	676,319
Commercial real estate		561,382		5,978		2,272		-		569,632
Total	$	1,199,208	$	38,743	$	6,613	$	1,387	$	1,245,951
Accrued interest included in total	$	3,408	$	105	$	23	$	-	$	3,536

For each of our mortgage and installment portfolio segment classes we generally monitor credit quality based on the credit scores of the borrowers. These credit scores are generally updated semi-annually. The following tables summarize credit scores by loan class for our mortgage and installment loan portfolio segments at December 31, 2021:

	Mortgage (1)
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized
	2021		2020		2019		2018		2017		Prior		Cost Basis		Total
	(In thousands)
December 31, 2021
1-4 family owner occupied - jumbo
800 and above	$	31,137	$	17,652	$	8,491	$	2,565	$	7,516	$	527	$	-	$	67,888
750-799		135,292		92,590		30,072		7,118		9,469		5,043		2,371		281,955
700-749		67,255		34,665		13,765		4,421		7,748		4,856		-		132,710
650-699		19,367		10,313		5,447		5,285		6,080		690		-		47,182
600-649		2,050		2,638		506		1,013		837		976		-		8,020
550-599		-		469		-		-		781		-		-		1,250
500-549		-		1,411		-		-		-		-		-		1,411
Under 500		-		-		-		-		607		-		-		607
Unknown		-		-		-		-		-		-		-		-
Total	$	255,101	$	159,738	$	58,281	$	20,402	$	33,038	$	12,092	$	2,371	$	541,023
Accrued interest excluded from total	$	557	$	370	$	163	$	77	$	87	$	33	$	3	$	1,290

1-4 family owner occupied - non-jumbo
800 and above	$	6,185	$	5,534	$	3,756	$	2,514	$	3,566	$	4,569	$	4,026	$	30,150
750-799		33,227		20,300		9,688		5,664		8,887		12,498		8,341		98,605
700-749		19,317		10,572		4,813		4,035		5,008		21,806		5,637		71,188
650-699		6,593		4,233		3,217		2,010		3,135		12,423		2,812		34,423
600-649		2,119		1,082		1,051		1,549		1,660		8,663		89		16,213
550-599		-		295		1,076		758		1,023		5,802		147		9,101
500-549		-		57		421		327		510		3,169		18		4,502
Under 500		-		616		284		394		250		684		-		2,228
Unknown		-		-		-		-		-		-		-		-
Total	$	67,441	$	42,689	$	24,306	$	17,251	$	24,039	$	69,614	$	21,070	$	266,410
Accrued interest excluded from total	$	208	$	97	$	84	$	58	$	68	$	226	$	57	$	798

1-4 family non-owner occupied
800 and above	$	15,406	$	1,786	$	2,857	$	1,459	$	2,627	$	5,058	$	1,639	$	30,832
750-799		44,201		21,885		10,517		3,667		6,956		10,004		5,117		102,347
700-749		16,486		7,807		2,764		1,878		966		6,095		2,756		38,752
650-699		6,617		3,095		257		299		248		6,019		955		17,490
600-649		125		57		108		282		174		2,051		381		3,178
550-599		-		25		-		192		-		1,121		-		1,338
500-549		-		-		-		55		-		638		50		743
Under 500		-		-		-		-		-		172		-		172
Unknown		-		-		-		-		-		-		-		-
Total	$	82,835	$	34,655	$	16,503	$	7,832	$	10,971	$	31,158	$	10,898	$	194,852
Accrued interest excluded from total	$	171	$	95	$	46	$	23	$	33	$	107	$	38	$	513

1-4 family - 2nd lien
800 and above	$	415	$	964	$	426	$	95	$	266	$	353	$	8,465	$	10,984
750-799		2,161		2,413		714		1,332		1,859		2,415		30,106		41,000
700-749		1,307		1,049		771		561		1,374		2,365		16,316		23,743
650-699		122		309		460		405		140		1,639		5,286		8,361
600-649		-		177		72		106		92		1,143		1,370		2,960
550-599		-		-		61		-		-		476		228		765
500-549		-		-		99		-		89		190		155		533
Under 500		-		-		54		3		60		16		250		383
Unknown		-		-		-		-		-		-		-		-
Total	$	4,005	$	4,912	$	2,657	$	2,502	$	3,880	$	8,597	$	62,176	$	88,729
Accrued interest excluded from total	$	7	$	9	$	9	$	5	$	8	$	34	$	211	$	283

	Mortgage - continued (1)
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized
	2021		2020		2019		2018		2017		Prior		Cost Basis		Total
	(In thousands)
December 31, 2021
Resort lending
800 and above	$	-	$	-	$	-	$	274	$	-	$	7,347	$	-	$	7,621
750-799		600		1,246		250		511		63		19,630		-		22,300
700-749		-		174		-		301		67		9,052		-		9,594
650-699		951		-		-		-		-		6,057		-		7,008
600-649		-		-		-		-		-		1,841		-		1,841
550-599		-		-		-		-		-		80		-		80
500-549		-		-		-		-		-		201		-		201
Under 500		-		-		-		-		-		-		-		-
Unknown		-		-		-		-		-		-		-		-
Total	$	1,551	$	1,420	$	250	$	1,086	$	130	$	44,208	$	-	$	48,645
Accrued interest excluded from total	$	2	$	3	$	-	$	3	$	-	$	106	$	-	$	114

Total Mortgage
800 and above	$	53,143	$	25,936	$	15,530	$	6,907	$	13,975	$	17,854	$	14,130	$	147,475
750-799		215,481		138,434		51,241		18,292		27,234		49,590		45,935		546,207
700-749		104,365		54,267		22,113		11,196		15,163		44,174		24,709		275,987
650-699		33,650		17,950		9,381		7,999		9,603		26,828		9,053		114,464
600-649		4,294		3,954		1,737		2,950		2,763		14,674		1,840		32,212
550-599		-		789		1,137		950		1,804		7,479		375		12,534
500-549		-		1,468		520		382		599		4,198		223		7,390
Under 500		-		616		338		397		917		872		250		3,390
Unknown		-		-		-		-		-		-		-		-
Total	$	410,933	$	243,414	$	101,997	$	49,073	$	72,058	$	165,669	$	96,515	$	1,139,659
Accrued interest excluded from total	$	945	$	574	$	302	$	166	$	196	$	506	$	309	$	2,998

(1)	Credit scores have been updated within the last twelve months.

	Installment (1)
	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Total
	(In thousands)
December 31, 2021
Boat lending
800 and above	$	7,513	$	5,786	$	6,015	$	4,906	$	2,968	$	4,433	$	31,621
750-799		47,434		24,968		21,052		15,681		9,797		10,971		129,903
700-749		19,180		9,724		8,263		6,467		3,109		4,953		51,696
650-699		3,845		1,679		2,301		1,223		1,166		1,378		11,592
600-649		373		419		209		327		185		604		2,117
550-599		237		81		91		113		115		191		828
500-549		-		49		-		85		-		67		201
Under 500		-		-		-		10		168		4		182
Unknown		-		-		-		-		-		-		-
Total	$	78,582	$	42,706	$	37,931	$	28,812	$	17,508	$	22,601	$	228,140
Accrued interest excluded from total	$	169	$	102	$	106	$	69	$	44	$	47	$	537

Recreational vehicle lending
800 and above	$	8,475	$	5,121	$	5,837	$	4,627	$	2,456	$	3,594	$	30,110
750-799		66,834		22,707		17,173		11,973		5,281		6,794		130,762
700-749		32,702		9,500		6,169		3,768		1,657		2,343		56,139
650-699		7,390		2,423		1,842		948		649		905		14,157
600-649		990		408		291		333		152		111		2,285
550-599		271		100		163		318		6		72		930
500-549		39		21		105		62		26		91		344
Under 500		-		-		11		-		-		7		18
Unknown		-		-		-		-		-		-		-
Total	$	116,701	$	40,280	$	31,591	$	22,029	$	10,227	$	13,917	$	234,745
Accrued interest excluded from total	$	265	$	93	$	78	$	56	$	26	$	28	$	546

Other
800 and above	$	2,328	$	1,424	$	1,493	$	882	$	357	$	695	$	7,179
750-799		13,923		9,093		6,074		3,175		2,183		2,731		37,179
700-749		10,791		5,426		3,301		1,899		906		2,194		24,517
650-699		20,167		1,715		1,249		657		561		1,332		25,681
600-649		761		368		272		190		284		357		2,232
550-599		159		42		127		167		46		154		695
500-549		8		53		56		55		38		98		308
Under 500		6		62		42		14		12		18		154
Unknown		975		-		-		-		-		-		975
Total	$	49,118	$	18,183	$	12,614	$	7,039	$	4,387	$	7,579	$	98,920
Accrued interest excluded from total	$	73	$	40	$	36	$	19	$	11	$	38	$	217

Total installment
800 and above	$	18,316	$	12,331	$	13,345	$	10,415	$	5,781	$	8,722	$	68,910
750-799		128,191		56,768		44,299		30,829		17,261		20,496		297,844
700-749		62,673		24,650		17,733		12,134		5,672		9,490		132,352
650-699		31,402		5,817		5,392		2,828		2,376		3,615		51,430
600-649		2,124		1,195		772		850		621		1,072		6,634
550-599		667		223		381		598		167		417		2,453
500-549		47		123		161		202		64		256		853
Under 500		6		62		53		24		180		29		354
Unknown		975		-		-		-		-		-		975
Total	$	244,401	$	101,169	$	82,136	$	57,880	$	32,122	$	44,097	$	561,805
Accrued interest excluded from total	$	507	$	235	$	220	$	144	$	81	$	113	$	1,300

(1)	Credit scores have been updated within the last twelve months.

The following tables summarize credit scores by loan class for our mortgage and installment loan portfolio segments at December 31, 2020:

	Mortgage
	1-4 Family Owner Occupied - Jumbo		1-4 Family Owner Occupied - Non-jumbo		1-4 Family Non-owner Occupied		1-4 Family 2nd Lien		Resort Lending		Total
	(In thousands)
December 31, 2020
800 and above	$	61,077	$	40,187	$	25,468	$	12,490	$	9,546	$	148,768
_750-799		223,177		70,642		82,124		42,138		27,530		445,611
_700-749		101,086		75,489		30,326		22,962		11,726		241,589
_650-699		40,296		44,344		13,182		11,269		6,393		115,484
_600-649		11,146		18,519		4,303		2,703		1,670		38,341
_550-599		-		11,021		2,388		1,608		917		15,934
_500-549		3,396		5,129		1,580		1,012		192		11,309
Under 500		-		2,242		405		348		73		3,068
Total	$	440,178	$	267,573	$	159,776	$	94,530	$	58,047	$	1,020,104
Accrued interest included in total	$	1,301	$	1,641	$	587	$	373	$	276	$	4,178

	Installment
	Boat Lending		Recreational Vehicle Lending		Other		Total
	(In thousands)
December 31, 2020
800 and above	$	32,231	$	29,223	$	9,154	$	70,608
_750-799		123,689		95,890		37,512		257,091
_700-749		38,223		33,476		25,262		96,961
_650-699		10,189		8,794		21,138		40,121
_600-649		2,083		1,305		3,730		7,118
_550-599		661		551		1,299		2,511
_500-549		342		283		767		1,392
Under 500		95		52		63		210
Unknown		-		-		510		510
Total	$	207,513	$	169,574	$	99,435	$	476,522
Accrued interest included in total	$	572	$	457	$	156	$	1,185

Mortgage loans serviced for others are not reported as assets on the Consolidated Statements of Financial Condition. The principal balances of these loans at December 31 follow:

	2021		2020
	(In thousands)
Mortgage loans serviced for :
Fannie Mae	$	1,753,255	$	1,656,060
Freddie Mac		1,344,675		1,095,877
Ginnie Mae		170,983		181,615
FHLB		49,581		39,294
Other		5,027		11,242
Total	$	3,323,521	$	2,984,088

Custodial deposit accounts maintained in connection with mortgage loans serviced for others totaled $39.4 million and $40.5 million, at December 31, 2021 and 2020, respectively.

If we do not remain well capitalized for regulatory purposes (see note #20), meet certain minimum capital levels or certain profitability requirements or if we incur a rapid decline in net worth, we could lose our ability to sell and/or service loans to these investors. This could impact our ability to generate net gains on mortgage loans and generate servicing income. A forced liquidation of our servicing portfolio could also impact the value that could be recovered on this asset. Fannie Mae has the most stringent eligibility requirements covering capital levels, profitability and decline in net worth. Fannie Mae requires seller/servicers to be well capitalized for regulatory purposes. For the profitability requirement, we cannot record four or more consecutive quarterly losses and experience a 30% decline in net worth over the same period. Our net worth cannot decline by more than 25% in one quarter or more than 40% over two consecutive quarters. The highest level of capital we are required to maintain is at least $2.5 million plus 0.25% of all loans serviced for others.

An analysis of capitalized mortgage loan servicing rights for the years ended December 31 follows:

	2021			2020			2019
	(In thousands)
Balance at beginning of period	$	16,904		$	19,171		$	21,400
Originated servicing rights capitalized		11,436			13,957			7,303
Change in fair value due to price		3,380			(10,833	)		(6,408	)
Change in fair value due to pay downs		(5,488	)		(5,391	)		(3,124	)
Balance at end of year	$	26,232		$	16,904		$	19,171
Loans sold and serviced that have had servicing rights capitalized	$	3,323,521		$	2,982,833		$	2,580,705

Fair value of capitalized mortgage loan servicing rights was determined using an average coupon rate of 3.46%, average servicing fee of 0.256%, average discount rate of 10.07% and an average Public Securities Association (‘‘PSA’’) prepayment rate of 232 for December 31, 2021; and average coupon rate of 3.77%, average servicing fee of 0.257%, average discount rate of 10.09% and an average PSA prepayment rate of 348 for December 31, 2020.

OTHER REAL ESTATE

12 Months Ended

Dec. 31, 2021

OTHER REAL ESTATE [Abstract]

OTHER REAL ESTATE

NOTE 5 – OTHER REAL ESTATE

A summary of other real estate activity for the years ended December 31 follows⁽¹⁾:

	2021			2020			2019
	(In thousands)
Balance at beginning of year, net of valuation allowance	$	738		$	1,715		$	1,178
Loans transferred to other real estate		253			332			2,242
Sales of other real estate		(745	)		(1,161	)		(1,438	)
Additions to valuation allowance charged to expense		(11	)		(148	)		(267	)
Balance at end of year, net of valuation allowance	$	235		$	738		$	1,715

(1)	Table excludes other repossessed assets totaling $0.01 million and $0.03 million at December 31, 2021 and 2020, respectively.

We periodically review our real estate properties and establish valuation allowances on these properties if values have declined since the date of acquisition. An analysis of our valuation allowance for other real estate follows:

	2021			2020			2019
	(In thousands)
Balance at beginning of year	$	90		$	92		$	144
Additions charged to expense		11			148			267
Direct write-downs upon sale		(70	)		(150	)		(319	)
Balance at end of year	$	31		$	90		$	92

At December 31, 2021 and 2020, the balance of other real estate includes $0.2 million and $0.7 million, respectively of foreclosed residential real estate properties. Retail mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements totaled $0.6 million and $0.3 million at December 31, 2021 and 2020, respectively.

Other real estate and repossessed assets totaling $0.2 million and $0.8 million at December 31, 2021 and 2020, respectively, are presented net of the valuation allowance on the Consolidated Statements of Financial Condition.

PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2021

PROPERTY AND EQUIPMENT [Abstract]

PROPERTY AND EQUIPMENT

NOTE 6 – PROPERTY AND EQUIPMENT

A summary of property and equipment at December 31 follows:

	2021			2020
	(In thousands)
Land and land improvements	$	17,296		$	17,083
Buildings		58,870			57,208
Equipment		74,844			72,542
		151,010			146,833
Accumulated depreciation and amortization		(114,606	)		(110,706	)
Property and equipment, net	$	36,404		$	36,127

Depreciation expense was $5.4 million, $5.3 million and $5.2 million in 2021, 2020 and 2019, respectively.

GOODWILL AND OTHER INTANGIBLES

12 Months Ended

Dec. 31, 2021

GOODWILL AND OTHER INTANGIBLES [Abstract]

GOODWILL AND OTHER INTANGIBLES

NOTE 7 – GOODWILL AND OTHER INTANGIBLES

Intangible assets, net of amortization, at December 31 follows:

	2021				2020
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
	(In thousands)

Amortized intangible assets - core deposits	$	11,916	$	8,580	$	11,916	$	7,610
Unamortized intangible assets - goodwill	$	28,300			$	28,300

At December 31, 2021, the Bank (our reporting unit) had positive equity and elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the Bank exceeds its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the Bank exceeded its carrying value, resulting in no impairment.

Intangible amortization expense was $1.0 million, $1.0 million and $1.1 million during the years ended 2021, 2020 and 2019, respectively.

A summary of estimated core deposit intangible amortization at December 31, 2021, follows:

	(In thousands)

2022	$	785
2023		547
2024		516
2025		487
2026		460
2027 and thereafter		541
Total	$	3,336

DEPOSITS

12 Months Ended

Dec. 31, 2021

DEPOSITS [Abstract]

DEPOSITS

NOTE 8 – DEPOSITS

A summary of interest expense on deposits for the years ended December 31 follows:

	2021		2020		2019
	(In thousands)
Savings and interest-bearing checking	$	2,101	$	2,264	$	5,371
Reciprocal		764		2,158		6,024
Time		1,507		7,073		7,148
Brokered time		93		1,171		4,882
Total	$	4,465	$	12,666	$	23,425

Aggregate time deposits in denominations of $0.25 million or more amounted to $93.1 million and $50.0 million at December 31, 2021 and 2020, respectively.

A summary of the maturity of time deposits at December 31, 2021, follows (1):

	(In thousands)
2022	$	269,067
2023		43,692
2024		10,067
2025		5,834
2026		6,794
2027 and thereafter		338
Total	$	335,792

(1)	Includes time deposits, brokered time deposits and reciprocal time deposits

Reciprocal deposits represent demand, money market and time deposits from our customers that have been placed through IntraFi Network. This service allows our customers to access multi-million dollar FDIC deposit insurance on deposit balances greater than the standard FDIC insurance maximum.

A summary of reciprocal deposits at December 31 follows:

	2021		2020
	(In thousands)
Demand	$	559,664	$	515,092
Money market		2,546		3,308
Time		24,416		37,785
Total	$	586,626	$	556,185

OTHER BORROWINGS

12 Months Ended

Dec. 31, 2021

OTHER BORROWINGS [Abstract]

OTHER BORROWINGS

NOTE 9 – OTHER BORROWINGS

A summary of other borrowings at December 31 follows:

	2021		2020
	(In thousands)
Advances from the FHLB	$	30,000	$	30,000
Other		9		12
Total	$	30,009	$	30,012

Advances from the FHLB are secured by unencumbered qualifying mortgage and home equity loans with a market value equal to at least 132% to 165%, respectively, of outstanding advances. Advances are also secured by FHLB stock that we own, which totaled $8.6 million at December 31, 2021. Unused borrowing capacity with the FHLB (subject to the FHLB’s credit requirements and policies) was $798.4 million at December 31, 2021. Interest expense on advances amounted to $0.2 million, $0.5 million and $0.7 million for the years ended December 31, 2021, 2020 and 2019, respectively. No FHLB advances were prepaid during 2021, 2020 or 2019.

As a member of the FHLB, we must own FHLB stock equal to the greater of 0.10% of the unpaid principal balance of residential mortgage assets or 4.5% of our outstanding advances. At December 31, 2021, we were in compliance with the FHLB stock ownership requirements.

The maturity dates, weighted average interest rates and contractually required repayments of FHLB advances at December 31 follow:

	2021					2020
	Amount		Rate			Amount		Rate
	(Dollars in thousands)
Fixed-rate advances - 2027 and thereafter	$	30,000		0.74	%	$	30,000		0.74	%

Borrowings with the FRB at December 31, 2021 and 2020 were zero. Average borrowings with the FRB during the years ended December 31, 2021, 2020 and 2019 totaled zero, $1.546 million and $0.305 million, respectively. We had unused borrowing capacity with the FRB (subject to the FRB’s credit requirements and policies) of $383.4 million at December 31, 2021. Collateral for FRB borrowings are certain commercial and installment loans.

Interest expense on federal funds purchased totaled zero, $0.01 million and $0.08 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Assets, consisting of FHLB stock and loans, pledged to secure other borrowings and unused borrowing capacity totaled $1.9 billion at December 31, 2021.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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SUBORDINATED DEBT AND DEBENTURES [Abstract]

SUBORDINATED DEBT AND DEBENTURES

12 Months Ended

Dec. 31, 2021

SUBORDINATED DEBT AND DEBENTURES

NOTE 10 – SUBORDINATED DEBT AND DEBENTURES

Subordinated Debt

In May 2020, we issued $40.0 million of fixed to floating subordinated notes with a ten year maturity (May 31, 2030 maturity date) and a five year call option. The initial coupon rate is 5.95% fixed for five years and then floats at the Secured Overnight Financing Rate (“SOFR”) plus 5.825%. These notes are presented in the Consolidated Statement of Financial Condition under the caption “Subordinated debt” and the balances of $39.4 million and $39.3 million at December 31, 2021 and 2020, respectively are net of remaining unamortized deferred issuance costs of approximately $0.6 million and $0.7 million, respectively that are being amortized through the maturity date into interest expense on other borrowings and subordinated debt and debentures in our Consolidated Statement of Operations. We may redeem the notes, in whole or in part, on or after May 31, 2025, and redeem the notes at any time in whole upon certain other events. Any redemption of the notes will be subject to prior regulatory approval to the extent required.

Subordinated Debentures

We have formed various special purpose entities (the ‘‘trusts’’) for the purpose of issuing trust preferred securities in either public or pooled offerings or in private placements. Independent Bank Corporation owns all of the common stock of each trust and has issued subordinated debentures to each trust in exchange for all of the proceeds from the issuance of the common stock and the trust preferred securities. Trust preferred securities totaling $38.4 million and $38.3 million at December 31, 2021 and 2020, respectively qualified as Tier 1 regulatory capital.

These trusts are not consolidated with Independent Bank Corporation and accordingly, we report the common securities of the trusts held by us in accrued income and other assets and the subordinated debentures that we have issued to the trusts in the liability section of our Consolidated Statements of Financial Condition.

As the result of a previous acquisition we acquired TCSB Statutory Trust I as summarized in the tables below at a discount. The discount at acquisition totaled $1.4 million and is being amortized through its maturity date and is included in interest expense – other borrowings and subordinated debt and debentures in the Consolidated Statements of Operations.

Summary information regarding subordinated debentures as of December 31 follows:

		2021
Entity Name	Issue Date
Entity Name	Issue Date	Subordinated Debentures			Trust Preferred Securities Issued			Common Stock Issued
		(In thousands)
IBC Capital Finance III	May 2007	$	12,372		$	12,000		$	372
IBC Capital Finance IV	September 2007		15,465			15,000			465
Midwest Guaranty Trust I	November 2002		7,732			7,500			232
TCSB Statutory Trust I	March 2005		5,155			5,000			155
Discount on TCSB Statutory Trust I			(1,132	)		(1,132	)		-
		$	39,592		$	38,368		$	1,224

		2020
Entity Name	Issue Date
Entity Name	Issue Date	Subordinated Debentures			Trust Preferred Securities Issued			Common Stock Issued
		(In thousands)
IBC Capital Finance III	May 2007	$	12,372		$	12,000		$	372
IBC Capital Finance IV	September 2007		15,465			15,000			465
Midwest Guaranty Trust I	November 2002		7,732			7,500			232
TCSB Statutory Trust I	March 2005		5,155			5,000			155
Discount on TCSB Statutory Trust I			(1,200	)		(1,200	)		-
		$	39,524		$	38,300		$	1,224

Other key terms for the subordinated debentures and trust preferred securities that were outstanding at December 31, 2021 and 2020 follow:

Entity Name	Maturity Date	Interest Rate	First Permitted Redemption Date

IBC Capital Finance III	July 30, 2037	3 month LIBOR plus 1.60%	July 30, 2012
IBC Capital Finance IV	September 15, 2037	3 month LIBOR plus 2.85%	September 15, 2012
Midwest Guaranty Trust I	November 7, 2032	3 month LIBOR plus 3.45%	November 7, 2007
TCSB Statutory Trust I	March 17, 2035	3 month LIBOR plus 2.20%	March 17, 2010

The subordinated debentures and trust preferred securities are cumulative and have a feature that permits us to defer distributions (payment of interest) from time to time for a period not to exceed 20 consecutive quarters. Interest is payable quarterly on each of the subordinated debentures and trust preferred securities and no distributions were deferred at December 31, 2021 and 2020.

We have the right to redeem the subordinated debentures and trust preferred securities (at par) in whole or in part from time to time on or after the first permitted redemption date specified above or upon the occurrence of specific events defined within the trust indenture agreements.

Distributions (payment of interest) on the trust preferred securities are included in interest expense – other borrowings and subordinated debt and debentures in the Consolidated Statements of Operations.

COMMITMENTS AND CONTINGENT LIABILITIES

12 Months Ended

Dec. 31, 2021

COMMITMENTS AND CONTINGENT LIABILITIES [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

NOTE 11 – COMMITMENTS AND CONTINGENT LIABILITIES

In the normal course of business, we enter into financial instruments with off-balance sheet risk to meet the financing needs of customers or to reduce exposure to fluctuations in interest rates. These financial instruments may include commitments to extend credit and standby letters of credit. Financial instruments involve varying degrees of credit and interest-rate risk in excess of amounts reflected in the Consolidated Statements of Financial Condition. Exposure to credit risk in the event of non-performance by the counterparties to the financial instruments for loan commitments to extend credit and standby letters of credit is represented by the contractual amounts of those instruments.

A summary of financial instruments with off-balance sheet risk at December 31 follows:

	2021		2020
	(In thousands)
Financial instruments whose risk is represented by contract amounts
Commitments to extend credit	$	672,693	$	644,815
Standby letters of credit		9,208		9,361

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. Commitments generally have fixed expiration dates or other termination clauses and generally require payment of a fee. Since commitments may expire without being drawn upon, the commitment amounts do not represent future cash requirements. Commitments are issued subject to similar underwriting standards, including collateral requirements, as are generally involved in the extension of credit facilities.

Standby letters of credit are written conditional commitments issued to guarantee the performance of a customer to a third party. The credit risk involved in such transactions is essentially the same as that involved in extending loan facilities and, accordingly, standby letters of credit are issued subject to similar underwriting standards, including collateral requirements, as are generally involved in the extension of credit facilities. The majority of the standby letters of credit are on-demand with no stated maturity date and have variable rates that range from 2.50% to 12.00%.

COVID-19 Pandemic

The COVID-19 pandemic and the related government mandates, restrictions, and guidance have created and may continue to create and contribute to significant economic uncertainty and market disruptions. Throughout 2020 and 2021, the volatility created by the pandemic and responses to the pandemic impacted our performance, customers, and the markets we serve.

Federal and state government responses have also created uncertainty. On November 4, 2021, the U.S. Department of Labor implemented an emergency temporary standard (ETS) mandating that all employers with 100 workers or more must require their employees to be fully vaccinated or submit to weekly testing. The ETS has been met with many subsequent legal challenges. On January 13, 2022, the U.S. Supreme Court stayed the ETS, sending the case back to the U.S. Court of Appeals for the Sixth Circuit for a decision on the merits. The timeline for such a decision is undetermined, and the outcomes remain unpredictable. In Michigan, the Department of Health and Human Services announced its intent to update quarantine and isolation periods to align with the Centers for Disease Control and Prevention’s newly shortened guidelines. These impending mandates and guidelines may have significant effects on the U.S. and Michigan economies, the banking sector generally, and our business specifically, the scope of which cannot be foreseen.

Based on this uncertainty, it is difficult to predict the extent to which the pandemic will continue to adversely impact our business, results of operations, financial condition, and customers. The potential impacts may include, but are not limited to:

•

difficulties encountered by our business customers in addressing the effects of the pandemic may cause increases in loan delinquencies, foreclosures and defaults;

•

increases in our allowance for credit losses may be necessary;

•

declines in collateral values may occur;

•

third party disruptions may occur, including outages at network providers, on-line banking vendors and other suppliers;

•

there is increased cyber and payment fraud risk, as cybercriminals attempt to profit from the disruption, given increased online and remote activity;

•

we may experience operational failures due to changes in our normal business practices necessitated by the pandemic and related governmental actions; and/or

•

our production and efficiency may suffer due to employee illnesses and/or employees having to work remotely.

Given the ongoing uncertainty with respect to the pandemic and potential government responses, these risk factors may continue to some degree for a significant period of time.

The extent to which the COVID-19 pandemic may impact our business, results of operations, asset valuations, financial condition, and customers will depend on future developments, which continue to be highly uncertain and difficult to predict. Those developments and factors are expected to include the evolution of the virus and new and emerging virus variants, vaccination rates and subsequent vaccine-“boosters,” actions taken by governmental authorities to address the foregoing, and the enforcement thereof, and how quickly and to what extent normal economic and operating conditions stabilize. Potential developments also include market factors, such as interest rates, supply chain disruptions, inflation, consumer-welfare, and employment rates. We do not know the full extent of the potential impact. Material adverse impacts may include all or a combination of valuation impairments on our intangible assets, securities available for sale, loans, capitalized mortgage loan servicing rights or deferred tax assets.

Certain consumer-driven industries (including restaurants, hotels, retail, fitness, and other industries) have experienced increased stress and have been more adversely impacted by the COVID-19 pandemic and related consumer trends, labor shortages and supply chain disruptions. We believe that the following concentrations within our commercial loan portfolio represent greater potential risk in the current economic environment. The balances below are as of December 31, 2021.

			% of
			Total
	Amount		Loans
	(Dollars in millions)
Commercial and industrial:
Retail	$	70		2.4	%
Food service		49		1.7
Hotel		40		1.4
		159		5.5

Commercial real estate:
Retail		109		3.8
Office		72		2.5
Multifamily		55		1.9
		236		8.1

Total	$	395		13.6	%

At December 31, 2021, we had no commercial loans in forbearance. However, we continue to closely monitor these industry concentrations and at present do not foresee any significant losses relative to this portion of our loan portfolio given the current economic conditions in Michigan and the fact that many businesses are reporting increased spending. However, a high degree of uncertainty still exists with respect to the impact of the COVID-19 pandemic and the related economic disruptions on the future performance of our loan portfolio, including these concentrations.

Litigation

We are involved in various litigation matters in the ordinary course of business. At the present time, we do not believe any of these matters will have a significant impact on our consolidated financial position or results of operations. The aggregate amount we have accrued for losses we consider probable as a result of these litigation matters is immaterial. However, because of the inherent uncertainty of outcomes from any litigation matter, we believe it is reasonably possible we may incur losses in addition to the amounts we have accrued. At this time, we estimate the maximum amount of additional losses that are reasonably possible is insignificant. However, because of a number of factors, including the fact that certain of these litigation matters are still in their early stages, this maximum amount may change in the future.

The litigation matters described in the preceding paragraph primarily include claims that have been brought against us for damages, but do not include litigation matters where we seek to collect amounts owed to us by third parties (such as litigation initiated to collect delinquent loans). These excluded, collection-related matters may involve claims or counterclaims by the opposing party or parties, but we have excluded such matters from the disclosure contained in the preceding paragraph in all cases where we believe the possibility of us paying damages to any opposing party is remote.

Visa Stock

We own 12,566 shares of VISA Class B common stock. At the present time, these shares can only be sold to other Class B shareholders. As a result, there has generally been limited transfer activity in private transactions between buyers and sellers. Given the limited activity that we have become aware of and the continuing uncertainty regarding the likelihood, ultimate timing and eventual exchange rate for Class B shares into Class A shares, we continue to carry these shares at zero, representing cost basis less impairment. However, given the current conversion ratio of 1.6181 Class A shares for every 1 Class B share and the closing price of VISA Class A shares on February 25, 2022 of $219.27 per share, our 12,566 Class B shares would have a current “value” of approximately $4.5 million. We continue to monitor Class B trading activity and the status of the resolution of certain litigation matters at VISA that would trigger the conversion of Class B common shares into Class A common shares, which would not have any trading restrictions.

SHAREHOLDERS' EQUITY AND NET INCOME PER COMMON SHARE

12 Months Ended

Dec. 31, 2021

SHAREHOLDERS' EQUITY AND NET INCOME PER COMMON SHARE [Abstract]

SHAREHOLDERS' EQUITY AND NET INCOME PER COMMON SHARE

NOTE 12 – SHAREHOLDERS’ EQUITY AND NET INCOME PER COMMON SHARE

Our Board of Directors authorized share repurchase plans to buy back up to 5% of our outstanding common stock during 2021, 2020 and 2019. In addition, in June, 2019 our Board of Directors authorized a 300,000 share expansion of the 2019 repurchase plan. During 2021, 2020 and 2019 repurchases were made through open market and negotiated transactions and totaled 814,910, 708,956 and 1,204,688 shares of common stock, respectively for an aggregate purchase price of $17.3 million, $14.2 million and $26.3 million, respectively.

A reconciliation of basic and diluted net income per common share for the years ended December 31 follows:

	2021		2020		2019
	(In thousands, except per share amounts)

Net income	$	62,895	$	56,152	$	46,435

Weighted average shares outstanding (1)		21,585		21,977		22,894
Stock units for deferred compensation plan for non-employee directors		121		121		132
Effect of stock options		69		90		115
Performance share units		32		33		42
Weighted average shares outstanding for calculation of diluted earnings per share		21,807		22,221		23,183

Net income per common share
Basic (1)	$	2.91	$	2.56	$	2.03
Diluted	$	2.88	$	2.53	$	2.00

(1)	Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards.

Weighted average stock options outstanding that were not considered in computing diluted net income per common share because they were anti-dilutive were zero for each year ended 2021, 2020 and 2019, respectively.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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INCOME TAX

12 Months Ended

Dec. 31, 2021

INCOME TAX [Abstract]

INCOME TAX

NOTE 13 – INCOME TAX

The composition of income tax expense for the years ended December 31 follows:

	2021		2020			2019
	(In thousands)
Current expense	$	12,506	$	15,459		$	10,237
Deferred expense (benefit)		1,912		(2,130	)		1,088
Income tax expense	$	14,418	$	13,329		$	11,325

The deferred income tax expense of $1.9 million in 2021 can be primarily attributed to the increase in capitalized mortgage servicing rights while the deferred income tax benefit of $2.1 million during 2020 can be primarily attributed to the increase in our allowance for credit losses while the deferred income tax expense of $1.1 million during 2019 can be primarily attributed to the utilization of our net operating loss (“NOL”) carryfoward and alternative minimum tax credit carryforward.

A reconciliation of income tax expense to the amount computed by applying the statutory federal income tax rate of 21% for 2021, 2020 and 2019 to the income before income tax for the years ended December 31 follows:

	2021			2020			2019
	(In thousands)
Statutory rate applied to income before income tax	$	16,236		$	14,591		$	12,130
Tax-exempt income		(1,487	)		(690	)		(375	)
Share-based compensation		(184	)		(204	)		(204	)
Bank owned life insurance		(119	)		(196	)		(233	)
Unrecognized tax benefit		(11	)		(206	)		(134	)
Non-deductible meals, entertainment and memberships		32			57			86
Other, net		(49	)		(23	)		55
Income tax expense	$	14,418		$	13,329		$	11,325

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31 follow:

	2021		2020
	(In thousands)
Deferred tax assets
Allowance for credit losses (1)	$	9,923	$	7,363
Property and equipment		1,405		1,047
Lease liabilities		1,386		1,652
Reserve for unfunded lending commitments		941		379
Share-based compensation		734		742
Deferred compensation		390		321
Loss reimbursement on sold loans reserve		242		214
Non accrual loan interest income		194		203
Other than temporary impairment charge on securities available for sale		144		144
Other		276		-
Gross deferred tax assets		15,635		12,065
Deferred tax liabilities
Capitalized mortgage loan servicing rights		5,509		3,550
Deferred loan fees		2,011		1,901
Unrealized gain on securities available for sale		1,674		4,206
Lease right of use asset		1,361		1,606
Purchase premiums, net		735		509
Other		-		18
Gross deferred tax liabilities		11,290		11,790
Deferred tax assets, net (2)	$	4,345	$	275

(1)	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

(2)	Included in accrued income and other assets on the Consolidated Statements of Financial Position.

We assess whether a valuation allowance should be established against our deferred tax assets based on the consideration of all available evidence using a ‘‘more likely than not’’ standard. The ultimate realization of this asset is primarily based on generating future income. We concluded at both December 31, 2021 and 2020, that the realization of substantially all of our deferred tax assets continues to be more likely than not.

Changes in unrecognized tax benefits for the years ended December 31 follow:

	2021			2020			2019
	(In thousands)

Balance at beginning of year	$	180		$	438		$	588
Additions based on tax positions related to the current year		11			15			20
Reductions due to the statute of limitations		(11	)		(273	)		(170	)
Reductions due to settlements		-			-			-
Balance at end of year	$	180		$	180		$	438

If recognized, the entire amount of unrecognized tax benefits, net of $0.04 million of federal tax on state benefits, would affect our effective tax rate. We do not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. No amounts were expensed for interest and penalties for the years ended December 31, 2021, 2020 and 2019. No amounts were accrued for interest and penalties at December 31, 2021, 2020 and 2019. At December 31, 2021, U.S. Federal tax years 2018 through the present remain open to examination.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Section S99
-Paragraph 2
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Paragraph 2
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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SHARE BASED COMPENSATION AND BENEFIT PLANS [Abstract]

SHARE BASED COMPENSATION AND BENEFIT PLANS

12 Months Ended

Dec. 31, 2021

SHARE BASED COMPENSATION AND BENEFIT PLANS

NOTE 14 – SHARE BASED COMPENSATION AND BENEFIT PLANS

We maintain share based payment plans that include a non-employee director stock purchase plan and a long-term incentive plan that permits the issuance of share based compensation, including stock options and non-vested share awards. The long-term incentive plan, which is shareholder approved, permits the grant of additional share based awards for up to 0.7 million shares of common stock as of December 31, 2021. The non-employee director stock purchase plan permits the grant of additional share based payments for up to 0.1 million shares of common stock as of December 31, 2021. Share based awards and payments are measured at fair value at the date of grant and are expensed over the requisite service period. Common shares issued upon exercise of stock options come from currently authorized but unissued shares.

During 2021, 2020 and 2019 pursuant to our long-term incentive plan, we granted 0.09 million, 0.06 million and 0.06 million shares, respectively of restricted stock and 0.02 million during each year of performance stock units (‘‘PSUs’’), to certain officers. Except for 0.010 million shares of restricted stock issued in 2019 that vest ratably over three years, all shares of restricted stock and PSUs cliff vest after a period of three years. The performance feature of the PSUs is based on a comparison of our total shareholder return over the vesting period starting on the grant date to the total shareholder return over that period for a banking index of our peers. We have not issued stock options in the previous three years.

Our directors may elect to receive all or a portion of their cash retainer fees in the form of common stock (either on a current basis or on a deferred basis) pursuant to the non-employee director stock purchase plan referenced above. Shares equal in value to that portion of each director’s fees that he or she has elected to receive in stock on a current basis are issued each quarter and vest immediately. Shares issued on a deferred basis are credited at the rate of 90% of the current fair value of our common stock and vest immediately. We issued 0.02 million, 0.02 million and 0.01 million shares to directors pursuant to this plan during the years ending 2021, 2020 and 2019, respectively and expensed their value during those same periods.

Total compensation expense recognized for grants pursuant to our long-term incentive plan was $1.6 million in 2021, 2020 and 2019. The corresponding tax benefit relating to this expense was $0.3 million during each year. Total expense recognized for non-employee director share based payments was $0.4 million, $0.4 million and $0.3 million in 2021, 2020 and 2019, respectively. The corresponding tax benefit relating to this expense was $0.08 million, $0.07 million and $0.05 million in 2021, 2020 and 2019, respectively.

At December 31, 2021, the total expected compensation cost related to non-vested restricted stock and PSUs not yet recognized was $2.1 million. The weighted-average period over which this amount will be recognized is 1.8 years.

A summary of outstanding stock option grants and related transactions follows:

	Number of Shares			Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregated Intrinsic Value
								(In thousands)
Outstanding at January 1,2021		121,189		$	4.81
Granted		-
Exercised		(40,350	)		2.90
Forfeited		-
Expired		-
Outstanding at December 31, 2021		80,839		$	5.76		1.6	$	1,464

Vested and expected to vest at December 31, 2021		80,839		$	5.76		1.6	$	1,464
Exercisable at December 31, 2021		80,839		$	5.76		1.6	$	1,464

A summary of outstanding non-vested stock and related transactions follows:

	Number of Shares			Weighted- Average Grant Date Fair Value
Outstanding at January 1, 2021		207,117		$	22.70
Granted		114,565			20.45
Vested		(73,081	)		22.82
Forfeited		(14,375	)		21.89
Outstanding at December 31, 2021		234,226		$	21.64

Certain information regarding options exercised during the periods ending December 31 follows:

	2021		2020		2019
	(In thousands)
Intrinsic value	$	752	$	293	$	897
Cash proceeds received	$	117	$	57	$	706
Tax benefit realized	$	158	$	61	$	188

We maintain 401(k) and employee stock ownership plans covering substantially all of our full-time employees. We matched 50% of employee contributions to the 401(k) plan up to a maximum of 8% of participating employees’ eligible wages for 2021, 2020 and 2019. Contributions to the employee stock ownership plan are determined annually and require approval of our Board of Directors. The maximum contribution is 6% of employees’ eligible wages. Contributions to the employee stock ownership plan were 2% for 2021, 2020 and 2019. Amounts expensed for these retirement plans were $3.3 million, $3.2 million and $2.6 million in 2021, 2020 and 2019, respectively.

Our employees participate in various performance-based compensation plans. Amounts expensed for all incentive plans totaled $15.6 million, $15.7 million and $9.5 million in 2021, 2020 and 2019, respectively.

We also provide certain health care and life insurance programs to substantially all full-time employees. Amounts expensed for these programs totaled $6.1 million, $4.8 million and $5.7 million in 2021, 2020 and 2019 respectively.

These insurance programs are also available to retired employees at their own expense.

OTHER NON-INTEREST INCOME

12 Months Ended

Dec. 31, 2021

OTHER NON-INTEREST INCOME [Abstract]

OTHER NON-INTEREST INCOME

NOTE 15 – OTHER NON-INTEREST INCOME

Other non-interest income for the years ended December 31 follows:

	2021		2020		2019
	(In thousands)
Investment and insurance commissions	$	2,603	$	1,971	$	1,658
ATM fees		1,133		1,197		1,403
Bank owned life insurance		567		910		1,111
Other		5,089		3,443		5,110
Total other non-interest income	$	9,392	$	7,521	$	9,282

DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2021

DERIVATIVE FINANCIAL INSTRUMENTS [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

NOTE 16 – DERIVATIVE FINANCIAL INSTRUMENTS

We are required to record derivatives on our Consolidated Statements of Financial Condition as assets and liabilities measured at their fair value. The accounting for increases and decreases in the value of derivatives depends upon the use of derivatives and whether the derivatives qualify for hedge accounting.

Our derivative financial instruments according to the type of hedge in which they are designated at December 31 follow:

	2021
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
Fair value hedge designation
Pay-fixed interest rate swap agreements - commercial	$	6,753		7.4	$	(384	)
Pay-fixed interest rate swap agreements - securities available for sale		148,895		5.8		4,413
Total	$	155,648		5.9	$	4,029

No hedge designation
Rate-lock mortgage loan commitments	$	129,846		0.1	$	2,140
Mandatory commitments to sell mortgage loans		97,737		0.1		(68	)
Interest rate swaption agreement		10,000		0.2		186
Pay-fixed interest rate swap agreements - commercial		207,080		5.7		(5,179	)
Pay-variable interest rate swap agreements - commercial		207,080		5.7		5,179
Interest rate cap agreements		90,000		1.3		35
Total	$	741,743		3.4	$	2,293

	2020
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
Fair value hedge designation
Pay-fixed interest rate swap agreements - commercial	$	7,088		8.4	$	(776	)
Pay-fixed interest rate swap agreements - securities available for sale		41,950		7.1		15
Total	$	49,038		7.3	$	(761	)

No hedge designation
Rate-lock mortgage loan commitments	$	168,816		0.1	$	7,020
Mandatory commitments to sell mortgage loans		186,092		0.1		(941	)
Pay-fixed interest rate swap agreements - commercial		147,456		4.5		(9,700	)
Pay-variable interest rate swap agreements - commercial		147,456		4.5		9,700
Pay-fixed interest rate swap agreements		25,000		0.6		(295	)
Interest rate cap agreements		135,000		1.8		5
Purchased options		2,908		0.5		42
Written options		2,848		0.5		(42	)
Total	$	815,576		2.0	$	5,789

We have established management objectives and strategies that include interest-rate risk parameters for maximum fluctuations in net interest income and market value of portfolio equity. We monitor our interest rate risk position via simulation modeling reports. The goal of our asset/liability management efforts is to maintain profitable financial leverage within established risk parameters.

To meet our asset/liability management objectives, we may periodically enter into derivative financial instruments to mitigate exposure to fluctuations in cash flows resulting from changes in interest rates (‘‘Cash Flow Hedges’’). Cash Flow Hedges had included certain pay-fixed interest rate swap and interest rate cap agreements. Pay-fixed interest rate swap agreements convert the variable-rate cash flows on debt obligations to fixed-rates. Under interest-rate cap agreements, we will receive cash if interest rates rise above a predetermined level. As a result, we effectively have variable-rate debt with an established maximum rate. We paid an upfront premium on interest rate caps which was recognized in earnings in the same period in which the hedged item affected earnings. During the first and third quarters of 2020 we transferred all of our Cash Flow Hedge interest rate cap and pay-fixed interest rate swap agreements, respectively to a no hedge designation. The $2.0 million and $0.5 million unrealized loss on our Cash Flow Hedge interest rate cap and pay-fixed interest rate swap agreements, respectively, which were included as a component of accumulated other comprehensive income at the time of the transfers, were being reclassified into earnings over the remaining life of the interest rate cap agreements and pay-fixed interest rate swap agreements. In the fourth quarter of 2020 it became probable that the forecasted transactions being hedged by these interest rate cap and pay-fixed interest rate swap agreements would not occur by the end of the originally specified time period. As a result, all remaining unrealized losses included as a component of accumulated other comprehensive income were reclassified into earnings at that time. The no hedge designation pay-fixed interest rate swap agreements, which all matured in 2021, as well as the no hedge designation interest rate cap agreements in the tables above were classified as a no hedge designation during 2020 and any changes in fair value since the transfers to the no hedge designation are recorded in earnings.

We have entered into a pay-fixed interest rate swap to protect a portion of the fair value of a certain fixed rate commercial loan (‘‘Fair Value Hedge – Commercial Loan’’). As a result, changes in the fair value of the pay-fixed interest rate swap is expected to offset changes in the fair value of the fixed rate commercial loan due to fluctuations in interest rates. We record the fair value of Fair Value Hedge – Commercial Loan in accrued income and other assets and accrued expenses and other liabilities on our Consolidated Statements of Financial Condition. The hedged item (fixed rate commercial loan) is also recorded at fair value which offsets the adjustment to the Fair Value Hedge – Commercial Loan. On an ongoing basis, we adjust our Consolidated Statements of Financial Condition to reflect the then current fair value of both the Fair Value Hedge – Commercial Loan and the hedged item. The related gains or losses are reported in interest income – interest and fees on loans in our Consolidated Statements of Operations.

We have entered into pay-fixed interest rate swaps to protect a portion of the fair value of certain securities available for sale (‘‘Fair Value Hedge – AFS Securities’’). As a result, the change in the fair value of the pay-fixed interest rate swaps is expected to offset a portion of the change in the fair value of the fixed rate securities available for sale due to fluctuations in interest rates. We record the fair value of Fair Value Hedge – AFS Securities in accrued income and other assets and accrued expenses and other liabilities on our Consolidated Statements of Financial Condition. The hedged items (fixed rate securities available for sale) are also recorded at fair value which offsets the adjustment to the Fair Value Hedge – AFS Securities. On an ongoing basis, we adjust our Consolidated Statements of Financial Condition to reflect the then current fair value of both the Fair Value Hedge – AFS Securities and the hedged item. The related gains or losses are reported in interest income – interest on securities available for sale – tax-exempt in our Consolidated Statements of Operations.

Certain derivative financial instruments have not been designated as hedges. The fair value of these derivative financial instruments has been recorded on our Consolidated Statements of Financial Condition and is adjusted on an ongoing basis to reflect their then current fair value. The changes in fair value of derivative financial instruments not designated as hedges are recognized in earnings.

In the ordinary course of business, we enter into rate-lock mortgage loan commitments with customers (‘‘Rate-Lock Commitments’’). These commitments expose us to interest rate risk. We also enter into mandatory commitments to sell mortgage loans (‘‘Mandatory Commitments’’) to reduce the impact of price fluctuations of mortgage loans held for sale and Rate-Lock Commitments. Mandatory Commitments help protect our loan sale profit margin from fluctuations in interest rates. The changes in the fair value of Rate Lock Commitments and Mandatory Commitments are recognized currently as part of net gains on mortgage loans in the Consolidated Statements of Operations. We obtain market prices on Mandatory Commitments and Rate-Lock Commitments. Net gains on mortgage loans, as well as net income, may be more volatile as a result of these derivative instruments, which are not designated as hedges.

We have purchased a swaption agreement, whereby we have the right but not the obligation to pay fixed on an interest rate swap at a future date, in an attempt to reduce the impact of price fluctuations of certain mortgage construction loans held for sale. The changes in the fair value of the swaption agreement is recognized currently as part of net gains on mortgage loans in our Consolidated Statements of Operations.

In prior periods we offered to our deposit customers an equity linked time deposit product (‘‘Altitude CD’’). The Altitude CD was a time deposit that provided the customer a guaranteed return of principal at maturity plus a potential equity return (a written option), while we receive a like stream of funds based on the equity return (a purchased option). The written and purchased options will generally move in opposite directions resulting in little or no net impact on our Consolidated Statements of Operations. The written and purchased options in the table above relate to this Altitude CD product and matured during the fourth quarter of 2021.

We have a program that allows commercial loan customers to lock in a fixed rate for a longer period of time than we would normally offer for interest rate risk reasons. We will enter into a variable rate commercial loan and an interest rate swap agreement with a customer and then enter into an offsetting interest rate swap agreement with an unrelated party. The interest rate swap agreement fair values will generally move in opposite directions resulting in little or no net impact on our Consolidated Statements of Operations. All of the interest rate swap agreements-commercial with no hedge designation in the table above relate to this program.

The following table illustrate the impact that the derivative financial instruments discussed above have on individual line items in the Consolidated Statements of Financial Condition for the periods presented:

Fair Values of Derivative Instruments

	Asset Derivatives								Liability Derivatives
	December 31,								December 31,
	2021				2020				2021				2020
	Balance Sheet Location		Fair Value		Balance Sheet Location		Fair Value		Balance Sheet Location		Fair Value		Balance Sheet Location		Fair Value
	(In thousands)
Derivatives designated as hedging instruments		-				-				-				-
Pay-fixed interest rate swap agreements	Other assets		$	4,413	Other assets		$	15	Other liabilities		$	384	Other liabilities		$	776
Derivatives not designated as hedging instruments
Rate-lock mortgage loan commitments	Other assets		$	2,140	Other assets		$	7,020	Other liabilities		$	-	Other liabilities		$	-
Mandatory commitments to sell mortgage loans	Other assets			-	Other assets			-	Other liabilities			68	Other liabilities			941
Interest rate swaption agreement	Other assets			186	Other assets			-	Other liabilities			-	Other liabilities			-
Pay-fixed interest rate swap agreements - commercial	Other assets			165	Other assets			-	Other liabilities			5,344	Other liabilities			9,700
Pay-variable interest rate swap agreements - commercial	Other assets			5,344	Other assets			9,700	Other liabilities			165	Other liabilities			-
Pay-fixed interest rate swap agreements	Other assets			-	Other assets			-	Other liabilities			-	Other liabilities			295
Interest rate cap agreements	Other assets			35	Other assets			5	Other liabilities			-	Other liabilities			-
Purchased options	Other assets			-	Other assets			42	Other liabilities			-	Other liabilities			-
Written options	Other assets			-	Other assets			-	Other liabilities			-	Other liabilities			42
				7,870				16,767				5,577				10,978
Total derivatives			$	12,283			$	16,782			$	5,961			$	11,754

The effect of derivative financial instruments on the Consolidated Statements of Operations follows:

Year Ended December 31,
	Gain (loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion)								Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion)	Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion)							Location of Gain (Loss) Recognized in Income	Gain (Loss) Recognized in Income
	2021		2020			2019				2021		2020			2019		Location of Gain (Loss) Recognized in Income	2021			2020			2019
	(In thousands)
Fair Value Hedges
Pay-fixed interest rate swap agreement - commercial																	Interest and fees on loans	$	392		$	(534	)	$	(242	)
Pay-fixed interest rate swap agreement - securities available for sale																	Interest on securities available for sale - tax-exempt		4,398			15			-
Total																		$	4,790		$	(519	)	$	(242	)
Cash Flow Hedges
Interest rate cap agreements	$	-	$	125		$	(1,211	)	Interest expense	$	-	$	(1,885	)	$	363
Pay-fixed interest rate swap agreements		-		(479	)		(392	)	Interest expense		-		(654	)		62
Total	$	-	$	(354	)	$	(1,603	)		$	-	$	(2,539	)	$	425
No hedge designation
Rate-lock mortgage loan commitments																	Net gains on mortgage loans	$	(4,880	)	$	5,608		$	725
Mandatory commitments to sell mortgage loans																	Net gains on mortgage loans		873			(791	)		233
Interest rate swaption agreement																	Net gains on mortgage loans		(2	)		-			-
Pay-fixed interest rate swap agreements - commercial																	Interest income		4,521			(6,059	)		(4,046	)
Pay-variable interest rate swap agreements -commercial																	Interest income		(4,521	)		6,059			4,046
Pay-fixed interest rate swap agreements																	Interest expense		295			231			-
Interest rate cap agreements																	Interest expense		30			(57	)		-
Purchased options																	Interest expense		(42	)		(99	)		25
Written options																	Interest expense		42			97			(23	)
Total																		$	(3,684	)	$	4,989		$	960

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2021

RELATED PARTY TRANSACTIONS

NOTE 17 – RELATED PARTY TRANSACTIONS

Certain directors and executive officers, including companies in which they are officers or have significant ownership, were loan and deposit customers during 2021 and 2020.

A summary of loans to our directors and executive officers (which includes loans to entities in which the individual owns a 10% or more voting interest) for the years ended December 31 follows:

	2021			2020
	(In thousands)

Balance at beginning of year	$	2,416		$	13,077
New loans and advances		5,722			417
Repayments		(1,259	)		(11,078	)
Balance at end of year	$	6,879		$	2,416

We had $1.9 million and $1.74 million in loan commitments to directors and executive officers at December 31, 2021 and 2020, respectively. Of these, commitments of $0.02 million and $0.04 million were outstanding at December 31, 2021 and 2020, respectively, and included in the table above.

Deposits held by us for directors and executive officers totaled $3.4 million and $2.0 million at December 31, 2021 and 2020, respectively.

LEASES

12 Months Ended

Dec. 31, 2021

LEASES [Abstract]

LEASES

NOTE 18 – LEASES

We have entered into leases in the normal course of business primarily for office facilities, some of which include renewal options and escalation clauses. Certain leases also include both lease components (fixed payments including rent, taxes and insurance costs) and non-lease components (common area or other maintenance costs) which are accounted for as a single lease component as we have elected the practical expedient to group lease and non-lease components together for all leases. We have also elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on our Consolidated Statements of Financial Condition. Most of our leases include one or more options to renew. The exercise of lease renewal options is typically at our sole discretion and are included in our right of use (“ROU”) assets and lease liabilities if they are reasonably certain of exercise.

Leases are classified as operating or finance leases at the lease commencement date (we did not have any finance leases as of December 31, 2021). Lease expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. The ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of the lease payment over the lease term.

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments.

The cost components of our operating leases follows:

	2021		2020		2019
	(In thousands)
Operating lease cost	$	1,672	$	1,780	$	2,217
Variable lease cost		63		69		142
Short-term lease cost		64		36		19
Total	$	1,799	$	1,885	$	2,378

Variable lease costs consist primarily of taxes, insurance, and common area or other maintenance costs for our leased facilities.

Supplemental balance sheet information related to our operating leases follows:

	2021			2020
	(In thousands)
Lease right of use asset (1)	$	6,481		$	7,646
Lease liabilities (2)	$	6,602		$	7,868

Weighted average remaining lease term (years)		6.50			7.12
Weighted average discount rate		2.3	%		2.4	%

(1)	Included in Accrued income and other assets in our Consolidated Statements of Financial Condition.

(2)	Included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition.

Maturity analysis of our lease liabilities at December 31, 2021 based on required contractual payments follows:

	(In thousands)

2022	$	1,619
2023		1,311
2024		816
2025		809
2026		744
2027 and thereafter		1,795
Total lease payments		7,094
Less imputed interest		(492	)
Total	$	6,602

CONCENTRATIONS OF CREDIT RISK	12 Months Ended
CONCENTRATIONS OF CREDIT RISK	Dec. 31, 2021
CONCENTRATIONS OF CREDIT RISK [Abstract]
CONCENTRATIONS OF CREDIT RISK	NOTE 19 – CONCENTRATIONS OF CREDIT RISK Credit risk is the risk to earnings and capital arising from an obligor’s failure to meet the terms of any contract with our organization or otherwise failing to perform as agreed. Credit risk can occur outside of our traditional lending activities and can exist in any activity where success depends on counterparty, issuer or borrower performance. Concentrations of credit risk (whether on- or off-balance sheet) arising from financial instruments can exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries or certain geographic regions. Credit risk associated with these concentrations could arise when a significant amount of loans or other financial instruments, related by similar characteristics, are simultaneously impacted by changes in economic or other conditions that cause their probability of repayment or other type of settlement to be adversely affected. Our major concentrations of credit risk arise by collateral type and by industry. The significant concentrations by collateral type at December 31, 2021, include $999.0 million of loans secured by residential real estate and $279.0 million of construction and land development loans. Additionally, within our commercial real estate and commercial loan portfolio, we had significant standard industry classification concentrations in the following categories as of December 31, 2021: Lessors of Nonresidential Real Estate ($358.6 million); Construction ($126.8 million); Lessors of Residential Real Estate ($100.2 million); Health Care and Social Assistance ($92.0 million); Accommodation and Food Services ($90.1 million) and Manufacturing ($73.4 million). A geographic concentration arises because we primarily conduct our lending activities in the State of Michigan.

REGULATORY MATTERS

12 Months Ended

Dec. 31, 2021

REGULATORY MATTERS [Abstract]

REGULATORY MATTERS

NOTE 20 – REGULATORY MATTERS

Capital guidelines adopted by federal and state regulatory agencies and restrictions imposed by law limit the amount of cash dividends our Bank can pay to us. Under these guidelines, the amount of dividends that may be paid in any calendar year is limited to the Bank’s current year net profits, combined with the retained net profits of the preceding two years. Further, the Bank cannot pay a dividend at any time that it has negative undivided profits. As of December 31, 2021, the Bank had positive undivided profits of $100.1 million. It is not our intent to have dividends paid in amounts that would reduce the capital of our Bank to levels below those which we consider prudent or that would not be in accordance with guidelines of regulatory authorities.

We are also subject to various regulatory capital requirements. The prompt corrective action regulations establish quantitative measures to ensure capital adequacy and require minimum amounts and ratios of total, Tier 1, and common equity Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets. Failure to meet minimum capital requirements can result in certain mandatory, and possibly discretionary, actions by regulators that could have a material effect on our consolidated financial statements. In addition, capital adequacy rules include a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets that applies to all supervised financial institutions. To avoid limits on capital distributions and certain discretionary bonus payments we must meet the minimum ratio for adequately capitalized institutions plus the buffer. Under capital adequacy guidelines, we must meet specific capital requirements that involve quantitative measures as well as qualitative judgments by the regulators. The most recent regulatory filings as of December 31, 2021 and 2020, categorized our Bank as well capitalized. Management is not aware of any conditions or events that would have changed the most recent Federal Deposit Insurance Corporation (‘‘FDIC’’) categorization.

Our actual capital amounts and ratios at December 31 follow⁽¹⁾:

	Actual					Minimum for Adequately Capitalized Institutions					Minimum for Well-Capitalized Institutions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
2021
Total capital to risk-weighted assets
Consolidated	$	488,495		14.53	%	$	268,991		8.00	%	NA		NA
Independent Bank		438,352		13.05			268,808		8.00		$	336,011		10.00	%

Tier 1 capital to risk-weighted assets
Consolidated	$	406,645		12.09	%	$	201,743		6.00	%	NA		NA
Independent Bank		396,351		11.80			201,606		6.00		$	268,808		8.00	%

Common equity tier 1 capital to risk-weighted assets
Consolidated	$	368,277		10.95	%	$	151,307		4.50	%	NA		NA
Independent Bank		396,351		11.80			151,205		4.50		$	218,407		6.50	%

Tier 1 capital to average assets
Consolidated	$	406,645		8.79	%	$	185,034		4.00	%	NA		NA
Independent Bank		396,351		8.57			185,077		4.00		$	231,347		5.00	%

2020
Total capital to risk-weighted assets
Consolidated	$	455,072		15.95	%	$	228,214		8.00	%	NA		NA
Independent Bank		401,005		14.06			228,111		8.00		$	285,139		10.00	%

Tier 1 capital to risk-weighted assets
Consolidated	$	379,395		13.30	%	$	171,161		6.00	%	NA		NA
Independent Bank		365,343		12.81			171,083		6.00		$	228,111		8.00	%

Common equity tier 1 capital to risk-weighted assets
Consolidated	$	341,095		11.96	%	$	128,370		4.50	%	NA		NA
Independent Bank		365,343		12.81			128,312		4.50		$	185,340		6.50	%

Tier 1 capital to average assets
Consolidated	$	379,395		9.15	%	$	165,825		4.00	%	NA		NA
Independent Bank		365,343		8.81			165,828		4.00		$	207,285		5.00	%

(1)	These ratios do not reflect a capital conservation buffer of 2.50% at December 31, 2021 and 2020.

NA - Not applicable

The components of our regulatory capital are as follows:

	Consolidated						Independent Bank
	December 31,						December 31,
	2021			2020			2021			2020
	(In thousands)
Total shareholders’ equity	$	398,484		$	389,522		$	426,558		$	413,770
Add (deduct)
Accumulated other comprehensive loss for regulatory purposes		(6,298	)		(15,821	)		(6,298	)		(15,821	)
Goodwill and other intangibles		(31,636	)		(32,606	)		(31,636	)		(32,606	)
CECL (1)		7,727			-			7,727			-
Common equity tier 1 capital		368,277			341,095			396,351			365,343
Qualifying trust preferred securities		38,368			38,300			-			-
Tier 1 capital		406,645			379,395			396,351			365,343
Subordinated debt		40,000			40,000			-			-
Allowance for credit losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets (2)		41,850			35,677			42,001			35,662
Total risk-based capital	$	488,495		$	455,072		$	438,352		$	401,005

(1)	We elected the three year CECL transition method for regulatory purposes.

(2)	Beginning January 1, 2021, calculation of allowances are based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

FAIR VALUE DISCLOSURES

12 Months Ended

Dec. 31, 2021

FAIR VALUE DISCLOSURES [Abstract]

FAIR VALUE DISCLOSURES

NOTE 21 – FAIR VALUE DISCLOSURES

FASB ASC topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an 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. FASB ASC topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 instruments include securities traded on active exchange markets, such as the New York Stock Exchange, as well as U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets.

Level 2: Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 instruments include securities traded in less active dealer or broker markets.

Level 3: Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

We used the following methods and significant assumptions to estimate fair value:

Securities: Where quoted market prices are available in an active market, securities available for sale are classified as Level 1 of the valuation hierarchy. We currently do not have any Level 1 securities. If quoted market prices are not available for the specific security, then fair values are estimated by (1) using quoted market prices of securities with similar characteristics, (2) matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices, or (3) a discounted cash flow analysis whose significant fair value inputs can generally be verified and do not typically involve judgment by management. These securities are classified as Level 2 of the valuation hierarchy and primarily include agency securities, private label mortgage-backed securities, other asset backed securities, obligations of states and political subdivisions, trust preferred securities, corporate securities and foreign government securities.

Loans held for sale: The fair value of mortgage loans held for sale, carried at fair value is based on agency cash window loan pricing for comparable assets (recurring Level 2).

Collateral dependent loans with specific loss allocations based on collateral value: From time to time, certain collateral dependent loans will have an ACL established. When the fair value of the collateral is based on an appraised value or when an appraised value is not available we record the collateral dependent loan as nonrecurring Level 3. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments can be significant and thus will typically result in a Level 3 classification of the inputs for determining fair value.

Other real estate: At the time of acquisition, other real estate is recorded at fair value, less estimated costs to sell, which becomes the property’s new basis. Subsequent write-downs to reflect declines in value since the time of acquisition may occur from time to time and are recorded in net (gains) losses on other real estate and repossessed assets which is included other non-interest expense in the Consolidated Statements of Operations. The fair value of the property used at and subsequent to the time of acquisition is typically determined by a third party appraisal of the property. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments can be significant and typically result in a Level 3 classification of the inputs for determining fair value.

Appraisals for both collateral-dependent loans and other real estate are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by us. Once received, an independent third party, or a member of our Collateral Evaluation Department (for commercial properties), or a member of our Special Assets/ORE Group (for residential properties) reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. We compare the actual selling price of collateral that has been sold to the most recent appraised value of our properties to determine what additional adjustment, if any, should be made to the appraisal value to arrive at fair value. For commercial and residential properties we typically discount an appraisal to account for various factors that the appraisal excludes in its assumptions. These additional discounts generally do not result in material adjustments to the appraised value.

Capitalized mortgage loan servicing rights: The fair value of capitalized mortgage loan servicing rights is based on a valuation model used by an independent third party that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income. Certain model assumptions are generally unobservable and are based upon the best information available including data relating to our own servicing portfolio, reviews of mortgage servicing assumption and valuation surveys and input from various mortgage servicers and, therefore, are recorded as Level 3. Management evaluates the third party valuation for reasonableness each quarter as part of our financial reporting control processes.

Derivatives: The fair value of rate-lock mortgage loan commitments is based on agency cash window loan pricing for comparable assets and the fair value of mandatory commitments to sell mortgage loans is based on mortgage backed security pricing for comparable assets (recurring Level 2). The fair value of interest rate swap, interest rate cap and swaption agreements are derived from proprietary models which utilize current market data. The significant fair value inputs can generally be observed in the market place and do not typically involve judgment by management (recurring Level 2). The fair value of purchased and written options is based on prices of financial instruments with similar characteristics and do not typically involve judgment by management (recurring Level 2).

Assets and liabilities measured at fair value, including financial assets for which we have elected the fair value option, were as follows:

			Fair Value Measurements Using
	Fair Value Measure- ments		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Un- observable Inputs (Level 3)
	(In thousands)
December 31, 2021:
Measured at Fair Value on a Recurring Basis
Assets
Securities available for sale
U.S. agency	$	34,674	$	-	$	34,674	$	-
U.S. agency residential mortgage-backed		307,985		-		307,985		-
U.S. agency commercial mortgage-backed		22,926		-		22,926		-
Private label mortgage-backed		102,615		-		102,615		-
Other asset backed		216,170		-		216,170		-
Obligations of states and political subdivisions		576,076		-		576,076		-
Corporate		149,959		-		149,959		-
Trust preferred		1,919		-		1,919		-
Foreign government		506		-		506		-
Loans held for sale, carried at fair value		55,470		-		55,470		-
Capitalized mortgage loan servicing rights		26,232		-		-		26,232
Derivatives (1)		12,283		-		12,283		-
Liabilities
Derivatives (2)		5,961		-		5,961		-

Measured at Fair Value on a Non-recurring Basis:
Assets
Collateral dependent loans (3)
Commercial
Commercial and industrial		274		-		-		274
Commercial real estate		65		-		-		65
Mortgage
1-4 family owner occupied - non-jumbo		516		-		-		516
1-4 family non-owner occupied		130		-		-		130
1-4 family - 2nd lien		121		-		-		121
Resort lending		77		-		-		77
Installment
Boat lending		51		-		-		51
Recreational vehicle lending		77		-		-		77
Other		45		-		-		45

(1)	Included in accrued income and other assets in the Consolidated Statements of Financial Condition.

(2)	Included in accrued expenses and other liabilities in the Consolidated Statements of Financial Condition.

(3)	Only includes individually evaluated loans with specific loss allocations based on collateral value.

			Fair Value Measurements Using
	Fair Value Measure- ments		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Un- observable Inputs (Level 3)
	(In thousands)
December 31, 2020:
Measured at Fair Value on a Recurring Basis
Assets
Securities available for sale
U.S. agency	$	10,748	$	-	$	10,748	$	-
U.S. agency residential mortgage-backed		344,582		-		344,582		-
U.S. agency commercial mortgage-backed		7,195		-		7,195		-
Private label mortgage-backed		42,829		-		42,829		-
Other asset backed		254,181		-		254,181		-
Obligations of states and political subdivisions		324,293		-		324,293		-
Corporate		86,017		-		86,017		-
Trust preferred		1,798		-		1,798		-
Foreign government		516		-		516		-
Loans held for sale, carried at fair value		92,434		-		92,434		-
Capitalized mortgage loan servicing rights		16,904		-		-		16,904
Derivatives (1)		16,782		-		16,782		-
Liabilities
Derivatives (2)		11,754		-		11,754		-

Measured at Fair Value on a Non-recurring Basis:
Assets
Impaired loans (3)
Commercial
Commercial and industrial		1,468		-		-		1,468
Commercial real estate		6,586		-		-		6,586
Mortgage
1-4 family owner occupied - jumbo		-		-		-		-
1-4 family owner occupied - non-jumbo		321		-		-		321
1-4 family non-owner occupied		155		-		-		155
1-4 family - 2nd lien		324		-		-		324
Resort lending		61		-		-		61
Installment
Boat lending		4		-		-		4
Recreational vehicle lending		31		-		-		31
Other		124		-		-		124
Other real estate (4)
1-4 family owner occupied - non-jumbo		102		-		-		102

(1)	Included in accrued income and other assets in the Consolidated Statements of Financial Condition.

(2)	Included in accrued expenses and other liabilities in the Consolidated Statements of Financial Condition.

(3)	Only includes impaired loans with specific loss allocations based on collateral value.

(4)	Only includes other real estate with subsequent write downs to fair value.

Changes in fair values of financial assets for which we have elected the fair value option for the years ended December 31 were as follows:

	Net Gains (Losses) on Assets							Total Change in Fair Values Included
	Securities Available For Sale		Mortgage Loans		Mortgage Loan Servicing, net			in Current Period Earnings
	(In thousands)

2021
Loans held for sale	$	-	$	(2,805)	$	-		$	(2,805)
Capitalized mortgage loan servicing rights		-		-		(2,108	)		(2,108	)

2020
Loans held for sale		-		1,962		-			1,962
Capitalized mortgage loan servicing rights		-		-		(16,224	)		(16,224	)

2019
Equity securities at fair value		167		-		-			167
Loans held for sale		-		637		-			637
Capitalized mortgage loan servicing rights		-		-		(9,532	)		(9,532	)

For those items measured at fair value pursuant to our election of the fair value option, interest income is recorded within the Consolidated Statements of Operations based on the contractual amount of interest income earned on these financial assets and dividend income is recorded based on cash dividends received.

The following represent impairment charges recognized during the years ended December 31, 2021, 2020 and 2019 relating to assets measured at fair value on a non-recurring basis:

•

Loans that are individually evaluated using the fair value of collateral for collateral dependent loans had a carrying amount of $1.4 million, which is net of a valuation allowance of $0.6 million at December 31, 2021, and had a carrying amount of $9.1 million, which is net of a valuation allowance of $1.8 million at December 31, 2020. An additional provision for credit losses relating to these collateral dependent loans of $0.3 million, $0.7 million and $1.3 million was included in our results of operations for the years ending December 31, 2021, 2020 and 2019, respectively.

•

Other real estate, which is measured using the fair value of the property, had a carrying amount of zero which is net of a valuation allowance of $0.03 million at December 31, 2021, and a carrying amount of $0.10 million which is net of a valuation allowance of $0.09 million, at December 31, 2020. An additional charge relating to other real estate measured at fair value of zero, $0.03 million and $0.03 million was included in our results of operations during the years ended December 31, 2021, 2020 and 2019, respectively.

A reconciliation for all assets and (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31 follows:

	Capitalized Mortgage Loan Servicing Rights
	2021			2020			2019
	(In thousands)
Beginning balance	$	16,904		$	19,171		$	21,400
Total losses realized and unrealized:
Included in results of operations		(2,108	)		(16,224	)		(9,532	)
Included in other comprehensive income (loss)		-			-			-
Purchases, issuances, settlements, maturities and calls		11,436			13,957			7,303
Transfers in and/or out of Level 3		-			-			-
Ending balance	$	26,232		$	16,904		$	19,171

Amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets and liabilities still held at December 31	$	(2,108	)	$	(16,224	)	$	(9,532	)

The fair value of our capitalized mortgage loan servicing rights has been determined based on a valuation model used by an independent third party as discussed above. The significant unobservable inputs used in the fair value measurement of the capitalized mortgage loan servicing rights are discount rate, cost to service, ancillary income, float rate and prepayment rate. Significant changes in all five of these assumptions in isolation would result in significant changes to the value of our capitalized mortgage loan servicing rights. Quantitative information about our Level 3 fair value measurements measured on a recurring basis follows:

	Asset Fair Value		Valuation Technique		Unobservable Inputs		Range			Weighted Average
	(In thousands)			-		-		-			-
2021
Capitalized mortgage loan servicing rights	$	26,232	Present value of net		Discount rate			10.00% to 13.00	%		10.07	%
			servicing revenue		Cost to service		$	67 to $281		$	78
					Ancillary income		20 to 30				21
					Float rate			1.36	%		1.36	%
					Prepayment rate			7.02% to 44.21	%		13.92	%

2020
Capitalized mortgage loan servicing rights	$	16,904	Present value of net		Discount rate			10.00% to 13.00	%		10.09	%
			servicing revenue		Cost to service		$	69 to $289		$	79
					Ancillary income		20 to 37				22
					Float rate			0.43	%		0.43	%
					Prepayment rate			7.92% to 64.70	%		20.85	%

Quantitative information about Level 3 fair value measurements measured on a non-recurring basis follows:

Asset

Fair

Value

Valuation

Technique

Unobservable

Inputs

Range

Weighted

Average

(In thousands)

2021

Collateral dependent loans

Commercial

339

Sales comparison

Adjustment for differences

approach

between comparable sales

(12.5)% to 12.0

1.5

Mortgage and Installment (1)

1,017

Sales comparison

Adjustment for differences

approach

between comparable sales

(30.1) to 29.3

0.2

Other real estate

2020

Impaired loans

Commercial

8,054

Sales comparison

Adjustment for differences

approach

between comparable sales

(40.0)% to 75.0

3.8

Mortgage and Installment (1)

1,020

Sales comparison

Adjustment for differences

approach

between comparable sales

(73.3) to 104.6

(1.5

)

Other real estate

Mortgage

102

Sales comparison

Adjustment for differences

approach

between comparable sales

(13.1) to 2.4

(3.6

)

(1)

In addition to the valuation techniques and unobservable inputs discussed above, at December 31, 2021 and 2020 certain collateral dependent installment loans totaling approximately $0.17 million and $0.16 million are secured by collateral other than real estate. For the majority of these loans, we apply internal discount rates to industry valuation guides.

The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale for which the fair value option has been elected at December 31:

	Aggregate Fair Value		Difference		Contractual Principal
	(In thousands)
Loans held for sale
2021	$	55,470	$	1,051	$	54,419
2020		92,434		3,856		88,578
2019		69,800		1,894		67,906

FAIR VALUES OF FINANCIAL INSTRUMENTS [Abstract]

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

FAIR VALUES OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2021

FAIR VALUES OF FINANCIAL INSTRUMENTS

NOTE 22 – FAIR VALUES OF FINANCIAL INSTRUMENTS

Most of our assets and liabilities are considered financial instruments. Many of these financial instruments lack an available trading market and it is our general practice and intent to hold the majority of our financial instruments to maturity. Significant estimates and assumptions were used to determine the fair value of financial instruments. These estimates are subjective in nature, involving uncertainties and matters of judgment, and therefore, fair values may not be a precise estimate. Changes in assumptions could significantly affect the estimates.

Estimated fair values have been determined using available data and methodologies that are considered suitable for each category of financial instrument. For instruments with adjustable interest rates which reprice frequently and without significant credit risk, it is presumed that estimated fair values approximate the recorded book balances.

The estimated recorded book balances and fair values at December 31 follow:

					Fair Value Using
	Recorded Book Balance		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Un- observable Inputs (Level 3)
	(In thousands)
2021
Assets
Cash and due from banks	$	51,069	$	51,069	$	51,069	$	-	$	-
Interest bearing deposits		58,404		58,404		58,404		-		-
Securities available for sale		1,412,830		1,412,830		-		1,412,830		-
Federal Home Loan Bank and Federal Reserve Bank Stock		18,427	NA		NA		NA		NA
Net loans and loans held for sale		2,948,074		2,931,079		35,233		55,470		2,840,376
Accrued interest receivable		12,865		12,865		1		6,028		6,836
Derivative financial instruments		12,283		12,283		-		12,283		-
Liabilities
Deposits with no stated maturity (1)	$	3,781,298	$	3,781,298	$	3,781,298	$	-	$	-
Deposits with stated maturity (1)		335,792		336,006		-		336,006		-
Other borrowings		30,009		30,155		-		30,155		-
Subordinated debt		39,357		44,999		-		44,999		-
Subordinated debentures		39,592		33,866		-		33,866		-
Accrued interest payable		497		497		67		430		-
Derivative financial instruments		5,961		5,961		-		5,961		-
2020
Assets
Cash and due from banks	$	56,006	$	56,006	$	56,006	$	-	$	-
Interest bearing deposits		62,699		62,699		62,699		-		-
Securities available for sale		1,072,159		1,072,159		-		1,072,159		-
Federal Home Loan Bank and Federal Reserve Bank Stock		18,427	NA		NA		NA		NA
Net loans and loans held for sale		2,790,683		2,794,058		-		92,434		2,701,624
Accrued interest receivable		12,315		12,315		3		3,414		8,898
Derivative financial instruments		16,782		16,782		-		16,782		-

Liabilities
Deposits with no stated maturity (1)	$	3,198,338	$	3,198,338	$	3,198,338	$	-	$	-
Deposits with stated maturity (1)		439,017		441,457		-		441,457		-
Other borrowings		30,012		30,844		-		30,844		-
Subordinated debt		39,281		41,417		-		41,417		-
Subordinated debentures		39,524		30,265		-		30,265		-
Accrued interest payable		601		601		59		542		-
Derivative financial instruments		11,754		11,754		-		11,754		-

NA – Not applicable

(1)

Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $562.210 million and $518.400 million at December 31, 2021 and 2020, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $24.416 million and $37.785 million at December 31, 2021 and 2020, respectively.

The fair values for commitments to extend credit and standby letters of credit are estimated to approximate their aggregate book balance, which is nominal, and therefore are not disclosed.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale the entire holdings of a particular financial instrument.

Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, the value of future earnings attributable to off-balance sheet activities and the value of assets and liabilities that are not considered financial instruments.

Fair value estimates for deposit accounts do not include the value of the core deposit intangible asset resulting from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12 Months Ended

Dec. 31, 2021

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

NOTE 23 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

A summary of changes in accumulated other comprehensive income (loss) (‘‘AOCIL’’), net of tax during the years ended December 31 follows:

	Unrealized Gains (Losses) on Securities Available for Sale			Dispropor- tionate Tax Effects from Securities Available for Sale			Unrealized Losses on Cash Flow Hedges			Total
	(In thousands)
2021
Balances at beginning of period	$	15,822		$	(5,798	)	$	-		$	10,024
Other comprehensive loss before reclassifications		(8,408	)		-			-			(8,408	)
Amounts reclassified from AOCIL		(1,115	)		-			-			(1,115	)
Net current period other comprehensive loss		(9,523	)		-			-			(9,523	)
Balances at end of period	$	6,299		$	(5,798	)	$	-		$	501

2020
Balances at beginning of period	$	3,739		$	(5,798	)	$	(1,727	)	$	(3,786	)
Other comprehensive income (loss) before reclassifications		12,294			-			(279	)		12,015
Amounts reclassified from AOCIL		(211	)		-			2,006			1,795
Net current period other comprehensive income		12,083			-			1,727			13,810
Balances at end of period	$	15,822		$	(5,798	)	$	-		$	10,024

2019
Balances at beginning of period	$	(4,185	)	$	(5,798	)	$	(125	)	$	(10,108	)
Other comprehensive income (loss) before reclassifications		8,035			-			(1,266	)		6,769
Amounts reclassified from AOCIL		(111	)		-			(336	)		(447	)
Net current period other comprehensive income (loss)		7,924			-			(1,602	)		6,322
Balances at end of period	$	3,739		$	(5,798	)	$	(1,727	)	$	(3,786	)

The disproportionate tax effects from securities available for sale arose primarily due to tax effects of other comprehensive income (‘‘OCI’’) in the presence of a valuation allowance against our deferred tax assets and a pretax loss from operations. Generally, the amount of income tax expense or benefit allocated to operations is determined without regard to the tax effects of other categories of income or loss, such as OCI. However, an exception to the general rule is provided when, in the presence of a valuation allowance against deferred tax assets, there is a pretax loss from operations and pretax income from other categories in the current period. In such instances, income from other categories must offset the current loss from operations, the tax benefit of such offset being reflected in operations. Release of material disproportionate tax effects from other comprehensive income to earnings is done by the portfolio method whereby the effects will remain in AOCIL as long as we carry a more than inconsequential portfolio of securities available for sale.

A summary of reclassifications out of each component of AOCIL for the years ended December 31 follows:

AOCIL Component	Reclassified From AOCIL			Affected Line Item in Consolidated Statements of Operations
	(In thousands)

2021
Unrealized gains (losses) on securities available for sale	$	1,411		Net gains on securities available for sale
		-		Net impairment loss recognized in earnings
		1,411		Total reclassifications before tax
		296		Income tax expense
	$	1,115		Reclassifications, net of tax

2020
Unrealized gains (losses) on securities available for sale	$	267		Net gains on securities available for sale
		-		Net impairment loss recognized in earnings
		267		Total reclassifications before tax
		56		Income tax expense
	$	211		Reclassifications, net of tax

Unrealized gains (losses) on cash flow hedges	$	2,539		Interest expense
		533		Income tax expense
	$	2,006		Reclassification, net of tax

	$	(1,795	)	Total reclassifications for the period, net of tax

2019
Unrealized gains (losses) on securities available for sale	$	140		Net gains on securities available for sale
		-		Net impairment loss recognized in earnings
		140		Total reclassifications before tax
		29		Income tax expense
	$	111		Reclassifications, net of tax

Unrealized gains (losses) on cash flow hedges	$	(425	)	Interest expense
		(89	)	Income tax expense
	$	(336	)	Reclassification, net of tax

	$	447		Total reclassifications for the period, net of tax

INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2021

INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION [Abstract]

INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION

NOTE 24 – INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION

Presented below are condensed financial statements for our parent company.

CONDENSED STATEMENTS OF FINANCIAL CONDITION
	December 31,
	2021		2020
	(In thousands)
ASSETS
Cash and due from banks	$	6,093	$	10,466
Interest bearing deposits - time		40,000		40,000
Investment in subsidiaries		432,949		418,465
Accrued income and other assets		96		805
Total Assets	$	479,138	$	469,736

LIABILITIES AND SHAREHOLDERS’ EQUITY
Subordinated debt	$	39,357	$	39,281
Subordinated debentures		39,592		39,524
Accrued expenses and other liabilities		844		684
Shareholders’ equity		399,345		390,247
Total Liabilities and Shareholders’ Equity	$	479,138	$	469,736

CONDENSED STATEMENTS OF OPERATIONS

	Year Ended December 31,
	2021			2020			2019
	(In thousands)
OPERATING INCOME
Dividends from subsidiary	$	32,000		$	24,000		$	29,000
Interest income		55			99			230
Other income		33			42			61
Total Operating Income		32,088			24,141			29,291

OPERATING EXPENSES
Interest expense		3,625			2,893			2,104
Administrative and other expenses		787			733			655
Total Operating Expenses		4,412			3,626			2,759
Income Before Income Tax and Equity in Undistributed Net Income of Subsidiaries		27,676			20,515			26,532
Income tax benefit		(1,048	)		(937	)		(423	)
Income Before Equity in Undistributed Net Income of Subsidiaries		28,724			21,452			26,955
Equity in undistributed net income of subsidiaries		34,171			34,700			19,480
Net Income	$	62,895		$	56,152		$	46,435

CONDENSED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2021			2020			2019
	(In thousands)
Net Income	$	62,895		$	56,152		$	46,435
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM OPERATING ACTIVITIES
Deferred income tax (benefit) expense		(81	)		(34	)		1,503
Share based compensation		95			89			65
Accretion of discount on subordinated debt and debentures		144			113			68
(Increase) decrease in accrued income and other assets		788			(307	)		891
Increase in accrued expenses and other liabilities		159			109			45
Equity in undistributed net income of subsidiaries		(34,171	)		(34,700	)		(19,480	)
Total Adjustments		(33,066	)		(34,730	)		(16,908	)
Net Cash From Operating Activities		29,829			21,422			29,527

CASH FLOW FROM (USED IN) INVESTING ACTIVITIES
Purchases of interest bearing deposits - time		(160,000	)		(85,000	)		(20,000	)
Maturity of interest bearing deposits - time		160,000			55,000			35,000
Net Cash From (Used In) Investing Activities		-			(30,000	)		15,000

CASH FLOW FROM (USED IN) FINANCING ACTIVITIES
Proceeds from issuance of subordinated debt, net of issuance costs		-			39,236			-
Dividends paid		(18,155	)		(17,618	)		(16,554	)
Proceeds from issuance of common stock		1,913			1,907			2,074
Share based compensation withholding obligation		(691	)		(755	)		(882	)
Repurchase of common stock		(17,269	)		(14,231	)		(26,284	)
Net Cash From (Used In) Financing Activities		(34,202	)		8,539			(41,646	)
Net Increase (Decrease) in Cash and Cash Equivalents		(4,373	)		(39	)		2,881
Cash and Cash Equivalents at Beginning of Year		10,466			10,505			7,624
Cash and Cash Equivalents at End of Year	$	6,093		$	10,466		$	10,505

REVENUE FROM CONTRACTS WITH CUSTOMERS

12 Months Ended

Dec. 31, 2021

REVENUE FROM CONTRACTS WITH CUSTOMERS [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

NOTE 25 – REVENUE FROM CONTRACTS WITH CUSTOMERS

We account for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers. We derive the majority of our revenue from financial instruments and their related contractual rights and obligations which for the most part are excluded from the scope of this topic. These sources of revenue that are excluded from the scope of this topic include interest income, net gains on mortgage loans, net gains on securities available for sale, mortgage loan servicing, net and bank owned life insurance and were approximately 84.6%, 88.1% and 84.9% of total revenues at December 31, 2021, 2020 and 2019, respectively.

Material sources of revenue that are included in the scope of ASC Topic 606 include service charges on deposits, other deposit related income, interchange income and investment and insurance commissions and are discussed in the following paragraphs. Generally these sources of revenue are earned at the time the service is delivered or over the course of a monthly period and do not result in any contract asset or liability balance at any given period end. As a result, there were no contract assets or liabilities recorded as of December 31, 2021.

Service charges on deposit accounts and other deposit related income: Revenues are earned on depository accounts for commercial and retail customers and include fees for transaction-based, account maintenance and overdraft services. Transaction-based fees, which includes services such as ATM use fees, stop payment charges and ACH fees are recognized at the time the transaction is executed as that is the time we fulfill our customer’s request. Account maintenance fees, which includes monthly maintenance services are earned over the course of a month representing the period over which the performance obligation is satisfied. Our obligation for overdraft services is satisfied at the time of the overdraft.

Interchange income: Interchange income primarily includes debit card interchange and network revenues. Debit card interchange and network revenues are earned on debit card transactions conducted through payment networks such as MasterCard and NYCE. Interchange income is recognized concurrently with the delivery of services on a daily basis. Interchange and network revenues are presented gross of interchange expenses, which are presented separately as a component of non-interest expense.

Investment and insurance commissions: Investment and insurance commissions include fees and commissions from asset management, custody, recordkeeping, investment advisory and other services provided to our customers. Revenue is recognized on an accrual basis at the time the services are performed and are generally based on either the market value of the assets managed or the services provided. We have an agent relationship with a third party provider of these services and net certain direct costs charged by the third party provider associated with providing these services to our customers.

Net gains on other real estate and repossessed assets: We record a gain or loss from the sale of other real estate when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. If we were to finance the sale of other real estate to the buyer, we would assess whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction is probable. Once these criteria are met, the other real estate asset would be derecognized and the gain or loss on sale would be recorded upon the transfer of control of the property to the buyer. There were no other real estate properties sold during 2021 that were financed by us.

Disaggregation of our revenue sources by attribute for the years ended December 31 follow:

2021
	Service Charges on Deposit Accounts		Other Deposit Related Income		Interchange Income		Investment and Insurance Commissions		Total
	(In thousands)
Retail
Overdraft fees	$	8,431	$	-	$	-	$	-	$	8,431
Account service charges		1,130		-		-		-		1,130
ATM fees		-		1,109		-		-		1,109
Other		-		819		-		-		819
Business
Overdraft fees		609		-		-		-		609
ATM fees		-		24		-		-		24
Other		-		328		-		-		328
Interchange income		-		-		14,045		-		14,045
Asset management revenue		-		-		-		1,689		1,689
Transaction based revenue		-		-		-		914		914

Total	$	10,170	$	2,280	$	14,045	$	2,603	$	29,098

Reconciliation to Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income									$	2,280
Investment and insurance commissions										2,603
Bank owned life insurance										567
Other										3,942
Total									$	9,392

2020
	Service Charges on Deposit Accounts		Other Deposit Related Income		Interchange Income		Investment and Insurance Commissions		Total
	(In thousands)
Retail
Overdraft fees	$	5,627	$	-	$	-	$	-	$	5,627
Account service charges		2,017		-		-		-		2,017
ATM fees		-		1,173		-		-		1,173
Other		-		769		-		-		769
Business
Overdraft fees		873		-		-		-		873
ATM fees		-		24		-		-		24
Other		-		342		-		-		342
Interchange income		-		-		11,230		-		11,230
Asset management revenue		-		-		-		1,283		1,283
Transaction based revenue		-		-		-		688		688

Total	$	8,517	$	2,308	$	11,230	$	1,971	$	24,026

Reconciliation to Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income									$	2,308
Investment and insurance commissions										1,971
Bank owned life insurance										910
Other										2,332
Total									$	7,521

2019
	Service Charges on Deposit Accounts		Other Deposit Related Income		Interchange Income		Investment and Insurance Commissions		Total
	(In thousands)
Retail
Overdraft fees	$	7,590	$	-	$	-	$	-	$	7,590
Account service charges		2,103		-		-		-		2,103
ATM fees		-		1,368		-		-		1,368
Other		-		965		-		-		965
Business
Overdraft fees		1,515		-		-		-		1,515
ATM fees		-		35		-		-		35
Other		-		422		-		-		422
Interchange income		-		-		10,297		-		10,297
Asset management revenue		-		-		-		1,123		1,123
Transaction based revenue		-		-		-		535		535

Total	$	11,208	$	2,790	$	10,297	$	1,658	$	25,953

Reconciliation to Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income									$	2,790
Investment and insurance commissions										1,658
Bank owned life insurance										1,111
Other										3,723
Total									$	9,282

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

PRINCIPLES OF CONSOLIDATION

ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2021

ACCOUNTING POLICIES [Abstract]

STATEMENTS OF CASH FLOWS

INTEREST BEARING DEPOSITS

INTEREST BEARING DEPOSITS — Interest bearing deposits consist of overnight deposits with the Federal Reserve Bank.

LOANS HELD FOR SALE

OPERATING SEGMENTS

CAPITALIZED MORTGAGE LOAN SERVICING RIGHTS

TRANSFERS OF FINANCIAL ASSETS

SECURITIES

Gains and losses realized on the sale of securities available for sale are determined using the specific identification method and are recognized on a trade-date basis.

FEDERAL HOME LOAN BANK ("FHLB") STOCK

FEDERAL RESERVE BANK ("FRB") STOCK

LOAN REVENUE RECOGNITION

ALLOWANCE FOR CREDIT LOSSES ("ACL")

Prior to January 1, 2021, the calculation of the allowance was based on the probable incurred loss methodology.

PROPERTY AND EQUIPMENT

BANK OWNED LIFE INSURANCE

OTHER REAL ESTATE AND REPOSSESSED ASSETS

OTHER INTANGIBLES

GOODWILL

INCOME TAXES

We recognize interest and/or penalties related to income tax matters in income tax expense in the Consolidated Statements of Operations.

We file a consolidated federal income tax return. Intercompany tax liabilities are settled as if each subsidiary filed a separate return.

COMMITMENTS TO EXTEND CREDIT AND RELATED FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

COMPREHENSIVE INCOME

NET INCOME PER COMMON SHARE

SHARE BASED COMPENSATION

COMMON STOCK

RECLASSIFICATION

RECLASSIFICATION — Certain amounts in the 2020 and 2019 consolidated financial statements have been reclassified to conform to the 2021 presentation.

ADOPTION OF NEW ACCOUNTING STANDARDS

•

•	Requires inclusion of expected recoveries, limited to the cumulative amount of prior write-offs, when estimating the ACL for in scope financial assets (including collateral dependent assets).

•

•	Generally requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption.

Based on our evaluation of securities available for sale, we did not record an ACL on these securities under this ASU.

The impact of the adoption of this ASU follows:

	As Reported Under ASU 2016-13			Pre-ASU 2016-13 Adoption			Impact of ASU 2016-13
				(In thousands)
Assets
Loans
Commercial	$	1,242,510		$	1,242,415		$	95
Mortgage		1,015,944			1,015,926			18
Installment		475,358			475,337			21
Total loans		2,733,812			2,733,678			134
Allowance for credit losses		(47,137	)		(35,429	)		(11,708	)
Net loans	$	2,686,675		$	2,698,249		$	(11,574	)
Deferred tax assets (1)	$	3,015		$	275		$	2,740
Total Assets	$	4,195,179		$	4,204,013		$	(8,834	)

Liabilities and shareholders’ equity
Allowance for credit losses on unfunded lending commitments (2)	$	3,274		$	1,805		$	1,469
Total liabilities	$	3,815,960		$	3,814,491		$	1,469
Retained earnings	$	29,842		$	40,145		$	(10,303	)
Total shareholders’ equity	$	379,219		$	389,522		$	(10,303	)
Total liabilities and shareholders’ equity	$	4,195,179		$	4,204,013		$	(8,834	)

(1)	Included in Accrued income and other assets in our Consolidated Statements of Financial Condition.

(2)	Included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition.

ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2021

ACCOUNTING POLICIES [Abstract]

Impact of Adoption of this ASU

The impact of the adoption of this ASU follows:

	As Reported Under ASU 2016-13			Pre-ASU 2016-13 Adoption			Impact of ASU 2016-13
				(In thousands)
Assets
Loans
Commercial	$	1,242,510		$	1,242,415		$	95
Mortgage		1,015,944			1,015,926			18
Installment		475,358			475,337			21
Total loans		2,733,812			2,733,678			134
Allowance for credit losses		(47,137	)		(35,429	)		(11,708	)
Net loans	$	2,686,675		$	2,698,249		$	(11,574	)
Deferred tax assets (1)	$	3,015		$	275		$	2,740
Total Assets	$	4,195,179		$	4,204,013		$	(8,834	)

Liabilities and shareholders’ equity
Allowance for credit losses on unfunded lending commitments (2)	$	3,274		$	1,805		$	1,469
Total liabilities	$	3,815,960		$	3,814,491		$	1,469
Retained earnings	$	29,842		$	40,145		$	(10,303	)
Total shareholders’ equity	$	379,219		$	389,522		$	(10,303	)
Total liabilities and shareholders’ equity	$	4,195,179		$	4,204,013		$	(8,834	)

(1)	Included in Accrued income and other assets in our Consolidated Statements of Financial Condition.

(2)	Included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition.

SECURITIES (Tables)

12 Months Ended

Dec. 31, 2021

SECURITIES [Abstract]

Securities Available for Sale

Securities available for sale consist of the following at December 31:

	Amortized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
2021
U.S. agency	$	34,634	$	152	$	112	$	34,674
U.S. agency residential mortgage-backed		309,907		1,952		3,874		307,985
U.S. agency commercial mortgage-backed		23,066		84		224		22,926
Private label mortgage-backed		102,480		807		672		102,615
Other asset backed		215,235		1,204		269		216,170
Obligations of states and political subdivisions		568,355		9,942		2,221		576,076
Corporate		148,707		2,446		1,194		149,959
Trust preferred		1,975		-		56		1,919
Foreign government		499		7		-		506
Total	$	1,404,858	$	16,594	$	8,622	$	1,412,830

2020
U.S. agency	$	10,456	$	305	$	13	$	10,748
U.S. agency residential mortgage-backed		340,224		4,951		593		344,582
U.S. agency commercial mortgage-backed		6,869		326		-		7,195
Private label mortgage-backed		41,429		1,539		139		42,829
Other asset backed		252,596		1,796		211		254,181
Obligations of states and political subdivisions		315,780		8,691		178		324,293
Corporate		82,307		3,807		97		86,017
Trust preferred		1,971		-		173		1,798
Foreign government		500		16		-		516
Total	$	1,052,132	$	21,431	$	1,404	$	1,072,159

Investments in a Continuous Unrealized Loss Position

	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)
2021
U.S. agency	$	11,986	$	109	$	1,286	$	3	$	13,272	$	112
U.S. agency residential mortgage-backed		171,398		3,555		19,024		319		190,422		3,874
U.S. agency commercial mortgage-backed		19,900		224		-		-		19,900		224
Private label mortgage-backed		64,408		640		2,180		32		66,588		672
Other asset backed		86,581		248		978		21		87,559		269
Obligations of states and political subdivisions		178,484		2,151		7,093		70		185,577		2,221
Corporate		75,166		1,150		1,050		44		76,216		1,194
Trust preferred		-		-		1,919		56		1,919		56
Total	$	607,923	$	8,077	$	33,530	$	545	$	641,453	$	8,622

2020
U.S. agency	$	1,469	$	3	$	2,329	$	10	$	3,798	$	13
U.S. agency residential mortgage-backed		96,839		592		83		1		96,922		593
Private label mortgage-backed		11,838		95		2,050		44		13,888		139
Other asset backed		7,142		25		21,197		186		28,339		211
Obligations of states and political subdivisions		28,957		177		800		1		29,757		178
Corporate		1,924		97		-		-		1,924		97
Trust preferred		-		-		1,798		173		1,798		173
Total	$	148,169	$	989	$	28,257	$	415	$	176,426	$	1,404

Amortized Cost and Fair Value of Securities Available for Sale by Contractual Maturity

The amortized cost and fair value of securities available for sale at December 31, 2021, by contractual maturity, follow:

	Amortized Cost		Fair Value
	(In thousands)
Maturing within one year	$	13,874	$	13,991
Maturing after one year but within five years		133,681		134,901
Maturing after five years but within ten years		266,057		266,282
Maturing after ten years		340,558		347,960
		754,170		763,134
U.S. agency residential mortgage-backed		309,907		307,985
U.S. agency commercial mortgage-backed		23,066		22,926
Private label mortgage-backed		102,480		102,615
Other asset backed		215,235		216,170
Total	$	1,404,858	$	1,412,830

Gains and Losses Realized on Sale of Securities Available for Sale

A summary of proceeds from the sale of securities available for sale and gains and losses for the years ended December 31 follow:

			Realized
	Proceeds		Gains		Losses
	(In thousands)
2021	$	85,371	$	1,475	$	64
2020		38,095		271		4
2019		68,716		248		108

LOANS (Tables)

12 Months Ended

Dec. 31, 2021

LOANS [Abstract]

Loan Portfolios

Our loan portfolios at December 31 follow:

	2021		2020
	(In thousands)
Real estate (1)
Residential first mortgages	$	870,169	$	792,762
Residential home equity and other junior mortgages		128,801		138,128
Construction and land development		278,992		232,693
Other (2)		726,224		669,150
Consumer		339,785		468,090
Commercial		555,696		429,011
Agricultural		5,378		3,844
Total loans	$	2,905,045	$	2,733,678

(1)	Includes both residential and non-residential commercial loans secured by real estate.

(2)	Includes loans secured by multi-family residential and non-farm, non-residential property.

Analysis of ACL by Portfolio Segment

An analysis of the ACL by portfolio segment for the years ended December 31 follows:

	Commercial			Mortgage			Installment			Subjective Allocation			Total
	(In thousands)
2021
Balance at beginning of period	$	7,401		$	6,998		$	1,112		$	19,918		$	35,429
Additions (deductions)
Impact of adoption of CECL		2,551			12,000			3,052			(6,029	)		11,574
Provision for credit losses		(1,135	)		(266	)		599			(1,126	)		(1,928	)
Initial allowance on loans purchased with credit deterioration		95			18			21			-			134
Recoveries credited to allowance		2,607			846			1,024			-			4,477
Loans charged against the allowance		-			(375	)		(2,059	)		-			(2,434	)
Balance at end of period	$	11,519		$	19,221		$	3,749		$	12,763		$	47,252

2020
Balance at beginning of period	$	7,922		$	8,216		$	1,283		$	8,727	$	26,148
Additions (deductions)
Provision for credit losses (1)		1,751			(915	)		436			11,191		12,463
Recoveries credited to allowance		1,804			513			752			-		3,069
Loans charged against the allowance		(4,076	)		(816	)		(1,359	)		-		(6,251	)
Balance at end of period	$	7,401		$	6,998		$	1,112		$	19,918	$	35,429

2019
Balance at beginning of period	$	7,090		$	7,978		$	895		$	8,925		$	24,888
Additions (deductions)
Provision for credit losses (1)		(651	)		526			1,147			(198	)		824
Recoveries credited to allowance		2,165			933			863			-			3,961
Loans charged against the allowance		(682	)		(1,221	)		(1,622	)		-			(3,525	)
Balance at end of period	$	7,922		$	8,216		$	1,283		$	8,727		$	26,148

(1)	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

The allocation of the ACL by portfolio segment at December 31 follows:

	2021					2020
	Allowance for Credit Losses Amount		Percent of Loans to Total Portfolio Loans			Allowance for Credit Losses Amount (1)		Percent of Loans to Total Portfolio Loans
	(Dollars in thousands)
Commercial	$	11,519		41.5	%	$	7,401		45.4	%
Mortgage		19,221		39.2			6,998		37.2
Installment		3,749		19.3			1,112		17.4
Subjective allocation		12,763		-			19,918		-
Total	$	47,252		100.0	%	$	35,429		100.0	%

(1)	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

ACL and Recorded Investment in Loans by Portfolio Segment

ACL and recorded investment in loans by portfolio segment at December 31, 2020 follows (1):

	Commercial		Mortgage		Installment		Subjective Allocation		Total
	(In thousands)
December 31, 2020
ACL:
Individually evaluated for impairment	$	1,266	$	4,124	$	191	$	-	$	5,581
Collectively evaluated for impairment		6,135		2,874		921		19,918		29,848
Loans acquired with deteriorated credit quality		-		-		-		-		-
Total ending ACL	$	7,401	$	6,998	$	1,112	$	19,918	$	35,429

Loans
Individually evaluated for impairment	$	9,431	$	39,245	$	1,996			$	50,672
Collectively evaluated for impairment		1,236,052		980,449		474,379				2,690,880
Loans acquired with deteriorated credit quality		468		410		147				1,025
Total loans recorded investment		1,245,951		1,020,104		476,522				2,742,577
Accrued interest included in recorded investment		3,536		4,178		1,185				8,899
Total loans	$	1,242,415	$	1,015,926	$	475,337			$	2,733,678

(1)	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

Loans on Non-Accrual Status and Past Due More than 90 Days

Loans on non-accrual status and past due more than 90 days (‘‘Non-performing Loans’’) at December 31 follow:

	December 31, 2021
	Non- Accrual with no Allowance for Credit Loss		Non- Accrual with an Allowance for Credit Loss		Total Non- Accrual		90+ and Still Accruing		Total Non- Performing Loans		December 31, 2020 Total Non- Performing Loans (1)
	(In thousands)
Commercial
Commercial and industrial (2)	$	-	$	15	$	15	$	-	$	15	$	1,387
Commercial real estate		-		-		-		-		-		-
Mortgage
1-4 family owner occupied - jumbo		607		-		607		-		607		623
1-4 family owner occupied - non-jumbo (3)		137		1,815		1,952		-		1,952		2,281
1-4 family non-owner occupied		275		592		867		-		867		1,112
1-4 family - 2nd lien		182		681		863		-		863		1,344
Resort lending		118		119		237		-		237		607
Installment
Boat lending		-		210		210		-		210		52
Recreational vehicle lending		-		177		177		-		177		74
Other		-		182		182		-		182		393
Total	$	1,319	$	3,791	$	5,110	$	-	$	5,110	$	7,873

Accrued interest excluded from total	$	-	$	-	$	-	$	-	$	-	$	-

(1)	Non-performing loans exclude purchase credit impaired loans.

(2)	Non-performing commercial and industrial loans exclude $0.047 million and $0.053 million of government guaranteed loans at December 31, 2021 and 2020, respectively.

(3)	Non-performing 1-4 family owner occupied – non jumbo loans exclude $0.388 million and $0.386 million of government guaranteed loans at December 31, 2021 and 2020, respectively.

Amortized Cost of Collateral-dependent Loans by Class

The amortized cost of collateral-dependent loans by class follows:

	Collateral Type				Allowance
	Real				for
	Estate		Other		Credit Losses
	(In thousands)
December 31, 2021
Commercial
Commercial and industrial	$	80	$	245	$	51
Commercial real estate		84		-		19
Mortgage
1-4 family owner occupied - jumbo		607		-		-
1-4 family owner occupied - non-jumbo		940		-		286
1-4 family non-owner occupied		477		-		72
1-4 family - 2nd lien		370		-		67
Resort lending		237		-		42
Installment
Boat lending		-		80		29
Recreational vehicle lending		-		121		44
Other		-		70		25
Total	$	2,795	$	516	$	635

Accrued interest excluded from total	$	-	$	1

Aging Analysis of Loans by Class

An aging analysis of loans by class at December 31 follows:

	Loans Past Due								Loans not		Total
	30-59 days		60-89 days		90+ days		Total		Past Due		Loans
	(In thousands)
2021
Commercial
Commercial and industrial	$	-	$	2	$	62	$	64	$	593,048	$	593,112
Commercial real estate		-		-		-		-		610,469		610,469
Mortgage
1-4 family owner occupied - jumbo		-		-		607		607		540,416		541,023
1-4 family owner occupied - non-jumbo		774		408		657		1,839		264,571		266,410
1-4 family non-owner occupied		87		26		462		575		194,277		194,852
1-4 family - 2nd lien		422		60		289		771		87,958		88,729
Resort lending		-		-		237		237		48,408		48,645
Installment
Boat lending		438		28		52		518		227,622		228,140
Recreational vehicle lending		377		65		120		562		234,183		234,745
Other		252		57		49		358		98,562		98,920
Total	$	2,350	$	646	$	2,535	$	5,531	$	2,899,514	$	2,905,045
Accrued interest excluded from total	$	25	$	9	$	-	$	34	$	6,802	$	6,836

2020
Commercial
Commercial and industrial	$	5,003	$	131	$	70	$	5,204	$	671,115	$	676,319
Commercial real estate		2,600		-		-		2,600		567,032		569,632
Mortgage
1-4 family owner occupied - jumbo		761		-		623		1,384		438,794		440,178
1-4 family owner occupied - non-jumbo		1,888		453		502		2,843		264,730		267,573
1-4 family non-owner occupied		1,184		139		476		1,799		157,977		159,776
1-4 family - 2nd lien		710		228		732		1,670		92,860		94,530
Resort lending		32		195		358		585		57,462		58,047
Installment
Boat lending		95		101		-		196		207,317		207,513
Recreational vehicle lending		207		37		48		292		169,282		169,574
Other		337		162		199		698		98,737		99,435
Total recorded investment	$	12,817	$	1,446	$	3,008	$	17,271	$	2,725,306	$	2,742,577
Accrued interest included in recorded investment	$	147	$	22	$	-	$	169	$	8,730	$	8,899

Impaired Loans

Impaired loans at December 31, 2020 are as follows (1):

	2020
	(In thousands)
Impaired loans with no allocated ACL
TDR	$	93
Non - TDR		1,367
Impaired loans with an allocated ACL
TDR - allowance based on collateral		9,027
TDR - allowance based on present value cash flow		37,953
Non - TDR - allowance based on collateral		1,873
Total impaired loans	$	50,313

Amount of ACL allocated (1)
TDR - allowance based on collateral	$	1,058
TDR - allowance based on present value cash flow		3,755
Non - TDR - allowance based on collateral		768
Total amount of ACL allocated	$	5,581

(1)	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

Impaired loans by class as of December 31, 2020 are as follows (1):

	2020
	Recorded Investment		Unpaid Principal Balance		Related ACL (1)
	(In thousands)
With no related ACL recorded:
Commercial
Commercial and industrial	$	77	$	80	$	-
Commercial real estate		-		-		-
Mortgage
1-4 family owner occupied - jumbo		623		629		-
1-4 family owner occupied - non-jumbo		-		-		-
1-4 family non-owner occupied		305		473		-
1-4 family - 2nd lien		301		304		-
Resort lending		154		379		-
Installment
Boat lending		-		-		-
Recreational vehicle lending		-		-		-
Other		-		-		-
		1,460		1,865		-

With an ACL recorded:
Commercial
Commercial and industrial		2,227		2,370		756
Commercial real estate		7,127		7,096		510
Mortgage
1-4 family owner occupied - jumbo		506		880		50
1-4 family owner occupied - non-jumbo		21,655		22,311		2,300
1-4 family non-owner occupied		4,335		4,704		495
1-4 family - 2nd lien		811		829		200
Resort lending		10,555		10,764		1,079
Installment
Boat lending		7		11		2
Recreational vehicle lending		87		100		19
Other		1,902		2,040		170
		49,212		51,105		5,581
Total
Commercial
Commercial and industrial		2,304		2,450		756
Commercial real estate		7,127		7,096		510
Mortgage
1-4 family owner occupied - jumbo		1,129		1,509		50
1-4 family owner occupied - non-jumbo		21,655		22,311		2,300
1-4 family non-owner occupied		4,640		5,177		495
1-4 family - 2nd lien		1,112		1,133		200
Resort lending		10,709		11,143		1,079
Installment
Boat lending		7		11		2
Recreational vehicle lending		87		100		19
Other		1,902		2,040		170
Total	$	50,672	$	52,970	$	5,581

Accrued interest included in recorded investment	$	359

(1)	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

Average Recorded Investment in and Interest Income Earned on Impaired Loans by Class

	2020				2019
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
With no related ACL recorded:
Commercial
Commercial and industrial	$	125	$	9	$	51	$	-
Commercial real estate		159		-		278		5
Mortgage
1-4 family owner occupied - jumbo		408		-		-		-
1-4 family owner occupied - non-jumbo		252		4		201		-
1-4 family non-owner occupied		308		10		123		-
1-4 family - 2nd lien		380		-		136		7
Resort lending		92		-		-		-
Installment
Boat lending		-		-		-		-
Recreational vehicle lending		-		-		-		-
Other		-		-		-		1
		1,724		23		789		13
With an a ACL recorded:
Commercial
Commercial and industrial		2,230		242		2,256		72
Commercial real estate		10,751		1,043		5,778		315
Mortgage
1-4 family owner occupied - jumbo		1,083		84		995		39
1-4 family owner occupied - non-jumbo		19,624		2,033		15,183		594
1-4 family non-owner occupied		4,664		375		2,874		291
1-4 family - 2nd lien		3,376		22		13,383		809
Resort lending		11,316		799		11,697		669
Installment
Boat lending		59		1		54		-
Recreational vehicle lending		81		4		22		-
Other		2,416		225		3,186		189
		55,600		4,828		55,428		2,978
Total
Commercial
Commercial and industrial		2,355		251		2,307		72
Commercial real estate		10,910		1,043		6,056		320
Mortgage
1-4 family owner occupied - jumbo		1,491		84		995		39
1-4 family owner occupied - non-jumbo		19,876		2,037		15,384		594
1-4 family non-owner occupied		4,972		385		2,997		291
1-4 family - 2nd lien		3,756		22		13,519		816
Resort lending		11,408		799		11,697		669
Installment
Boat lending		59		1		54		-
Recreational vehicle lending		81		4		22		-
Other		2,416		225		3,186		190
Total	$	57,324	$	4,851	$	56,217	$	2,991

(1)	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

Troubled Debt Restructurings

Troubled debt restructurings at December 31 follow:

	2021
	Commercial		Retail (1)			Total
	(In thousands)
Performing TDR’s	$	4,481	$	31,589		$	36,070
Non-performing TDR’s (2)		-		1,016	⁽³⁾		1,016
Total	$	4,481	$	32,605		$	37,086

	2020
	Commercial		Retail (1)			Total
	(In thousands)
Performing TDR’s	$	7,956	$	36,385		$	44,341
Non-performing TDR’s (2)		1,148		1,584	⁽³⁾		2,732
Total	$	9,104	$	37,969		$	47,073

(1)	Retail loans include mortgage and installment loan portfolio segments.

(2)	Included in non-performing loans table above.

(3)	Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.

Troubled Debt Restructuring During the Period

Loans that have been classified as troubled debt restructurings during the years ended December 31 follow (1):

	Number of Contracts		Pre-modification Recorded Balance		Post-modification Recorded Balance

2020
Commercial
Commercial and industrial		7	$	1,207	$	1,207
Commercial real estate		4		7,012		7,012
Mortgage
1-4 family owner occupied - jumbo		-		-		-
1-4 family owner occupied - non-jumbo		5		357		374
1-4 family non-owner occupied		2		111		116
1-4 family - 2nd lien		2		44		46
Resort lending		-		-		-
Installment
Boat lending		-		-		-
Recreational vehicle lending		-		-		-
Other		4		91		93
Total		24	$	8,822	$	8,848

	Number of Contracts		Pre-modification Recorded Balance		Post-modification Recorded Balance
	(Dollars in thousands)

2019
Commercial
Commercial and industrial		8	$	1,609	$	1,609
Commercial real estate		3		1,479		1,479
Mortgage
1-4 family owner occupied - jumbo		-		-		-
1-4 family owner occupied - non-jumbo		2		478		483
1-4 family non-owner occupied		1		507		505
1-4 family - 2nd lien		3		75		75
Resort lending		-		-		-
Installment
Boat lending		-		-		-
Recreational vehicle lending		-		-		-
Other		7		188		191
Total		24	$	4,336	$	4,342

(1)	There were no TDR modifications during the year ended December 31, 2021. The loan modifications during 2020 in the table above did not qualify for relief from TDR accounting under the CARES Act.

Commercial and Retail Loan COVID-19 Accommodations

A summary of COVID-19 accommodations that had been entered into under this guidance as of December 31, 2021 follows:

	COVID-19 Accomodations					Total		% of Total
Loan Category		Amounts (#)		Amounts ($)		Loans		Loans
	(Dollars in thousands)
Commercial			-	$	-	$	1,203,581		0.0	%
Mortgage			22		2,278		1,139,659		0.2	%
Installment			1		55		561,805		0.0	%
Total			23	$	2,333	$	2,905,045		0.1	%
Mortgage loans serviced for others(1)			46	$	5,163	$	3,323,521		0.2	%

1)	We have delegated authority from all investors to grant these deferrals on their behalf.

Information on subsequent COVID-19 accommodation extensions for portfolio loans follows (1):

Loan Category	Amount (#)		Amount ($)
	(Dollars in thousands)
Commercial		-	$	-
Mortgage		19		2,194
Installment		-		-
Total		19	$	2,194

(1)	Subsequent accommodations are extensions of the original accommodations that were given as summarized in the paragraph above.

	2021				2020
	Amount (#)		Amount ($)		Amount (#)		Amount ($)
	(Dollars in thousands)
Closed and outstanding - Round 1 loans		6	$	197		1,483	$	169,782
Closed and outstanding - Round 2 loans		180		26,167		-		-
Total closed and outstanding		186	$	26,364		1,483	$	169,782
Unaccreted net fees remaining at period end			$	806			$	3,216

Loan Ratings by Loan Class

The following table summarizes loan ratings by loan class for our commercial loan portfolio segment at December 31, 2021:

	Commercial
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized
	2021		2020		2019		2018		2017		Prior		Cost Basis		Total
	(In thousands)
December 31, 2021
Commercial and industrial
Non-watch (1-6)	$	121,917	$	69,856	$	56,984	$	44,827	$	38,307	$	96,261	$	144,579	$	572,731
Watch (7-8)		81		-		532		1,294		362		6,274		476		9,019
Substandard Accrual (9)		1,569		2		1,159		247		-		1,530		6,793		11,300
Non-Accrual (10-11)		-		-		-		-		-		62		-		62
Total	$	123,567	$	69,858	$	58,675	$	46,368	$	38,669	$	104,127	$	151,848	$	593,112
Accrued interest excluded from total	$	314	$	153	$	105	$	229	$	90	$	240	$	242	$	1,373

Commercial real estate
Non-watch (1-6)	$	123,330	$	55,479	$	108,056	$	75,828	$	39,123	$	160,199	$	31,551	$	593,566
Watch (7-8)		-		324		3,028		7,678		1,708		1,423		-		14,161
Substandard Accrual (9)		441		-		-		1,193		1,108		-		-		2,742
Non-Accrual (10-11)		-		-		-		-		-		-		-		-
Total	$	123,771	$	55,803	$	111,084	$	84,699	$	41,939	$	161,622	$	31,551	$	610,469
Accrued interest excluded from total	$	182	$	81	$	233	$	203	$	94	$	325	$	47	$	1,165

Total Commercial
Non-watch (1-6)	$	245,247	$	125,335	$	165,040	$	120,655	$	77,430	$	256,460	$	176,130	$	1,166,297
Watch (7-8)		81		324		3,560		8,972		2,070		7,697		476		23,180
Substandard Accrual (9)		2,010		2		1,159		1,440		1,108		1,530		6,793		14,042
Non-Accrual (10-11)		-		-		-		-		-		62		-		62
Total	$	247,338	$	125,661	$	169,759	$	131,067	$	80,608	$	265,749	$	183,399	$	1,203,581
Accrued interest excluded from total	$	496	$	234	$	338	$	432	$	184	$	565	$	289	$	2,538

The following table summarizes loan ratings by loan class for our commercial portfolio loan segment at December 31, 2020:

	Commercial
	Non-watch 1-6		Watch 7-8		Substandard Accrual 9		Non- Accrual 10-11		Total
					(In thousands)
December 31, 2020
Commercial and industrial	$	637,826	$	32,765	$	4,341	$	1,387	$	676,319
Commercial real estate		561,382		5,978		2,272		-		569,632
Total	$	1,199,208	$	38,743	$	6,613	$	1,387	$	1,245,951
Accrued interest included in total	$	3,408	$	105	$	23	$	-	$	3,536

	Mortgage (1)
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized
	2021		2020		2019		2018		2017		Prior		Cost Basis		Total
	(In thousands)
December 31, 2021
1-4 family owner occupied - jumbo
800 and above	$	31,137	$	17,652	$	8,491	$	2,565	$	7,516	$	527	$	-	$	67,888
750-799		135,292		92,590		30,072		7,118		9,469		5,043		2,371		281,955
700-749		67,255		34,665		13,765		4,421		7,748		4,856		-		132,710
650-699		19,367		10,313		5,447		5,285		6,080		690		-		47,182
600-649		2,050		2,638		506		1,013		837		976		-		8,020
550-599		-		469		-		-		781		-		-		1,250
500-549		-		1,411		-		-		-		-		-		1,411
Under 500		-		-		-		-		607		-		-		607
Unknown		-		-		-		-		-		-		-		-
Total	$	255,101	$	159,738	$	58,281	$	20,402	$	33,038	$	12,092	$	2,371	$	541,023
Accrued interest excluded from total	$	557	$	370	$	163	$	77	$	87	$	33	$	3	$	1,290

1-4 family owner occupied - non-jumbo
800 and above	$	6,185	$	5,534	$	3,756	$	2,514	$	3,566	$	4,569	$	4,026	$	30,150
750-799		33,227		20,300		9,688		5,664		8,887		12,498		8,341		98,605
700-749		19,317		10,572		4,813		4,035		5,008		21,806		5,637		71,188
650-699		6,593		4,233		3,217		2,010		3,135		12,423		2,812		34,423
600-649		2,119		1,082		1,051		1,549		1,660		8,663		89		16,213
550-599		-		295		1,076		758		1,023		5,802		147		9,101
500-549		-		57		421		327		510		3,169		18		4,502
Under 500		-		616		284		394		250		684		-		2,228
Unknown		-		-		-		-		-		-		-		-
Total	$	67,441	$	42,689	$	24,306	$	17,251	$	24,039	$	69,614	$	21,070	$	266,410
Accrued interest excluded from total	$	208	$	97	$	84	$	58	$	68	$	226	$	57	$	798

1-4 family non-owner occupied
800 and above	$	15,406	$	1,786	$	2,857	$	1,459	$	2,627	$	5,058	$	1,639	$	30,832
750-799		44,201		21,885		10,517		3,667		6,956		10,004		5,117		102,347
700-749		16,486		7,807		2,764		1,878		966		6,095		2,756		38,752
650-699		6,617		3,095		257		299		248		6,019		955		17,490
600-649		125		57		108		282		174		2,051		381		3,178
550-599		-		25		-		192		-		1,121		-		1,338
500-549		-		-		-		55		-		638		50		743
Under 500		-		-		-		-		-		172		-		172
Unknown		-		-		-		-		-		-		-		-
Total	$	82,835	$	34,655	$	16,503	$	7,832	$	10,971	$	31,158	$	10,898	$	194,852
Accrued interest excluded from total	$	171	$	95	$	46	$	23	$	33	$	107	$	38	$	513

1-4 family - 2nd lien
800 and above	$	415	$	964	$	426	$	95	$	266	$	353	$	8,465	$	10,984
750-799		2,161		2,413		714		1,332		1,859		2,415		30,106		41,000
700-749		1,307		1,049		771		561		1,374		2,365		16,316		23,743
650-699		122		309		460		405		140		1,639		5,286		8,361
600-649		-		177		72		106		92		1,143		1,370		2,960
550-599		-		-		61		-		-		476		228		765
500-549		-		-		99		-		89		190		155		533
Under 500		-		-		54		3		60		16		250		383
Unknown		-		-		-		-		-		-		-		-
Total	$	4,005	$	4,912	$	2,657	$	2,502	$	3,880	$	8,597	$	62,176	$	88,729
Accrued interest excluded from total	$	7	$	9	$	9	$	5	$	8	$	34	$	211	$	283

	Mortgage - continued (1)
	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized
	2021		2020		2019		2018		2017		Prior		Cost Basis		Total
	(In thousands)
December 31, 2021
Resort lending
800 and above	$	-	$	-	$	-	$	274	$	-	$	7,347	$	-	$	7,621
750-799		600		1,246		250		511		63		19,630		-		22,300
700-749		-		174		-		301		67		9,052		-		9,594
650-699		951		-		-		-		-		6,057		-		7,008
600-649		-		-		-		-		-		1,841		-		1,841
550-599		-		-		-		-		-		80		-		80
500-549		-		-		-		-		-		201		-		201
Under 500		-		-		-		-		-		-		-		-
Unknown		-		-		-		-		-		-		-		-
Total	$	1,551	$	1,420	$	250	$	1,086	$	130	$	44,208	$	-	$	48,645
Accrued interest excluded from total	$	2	$	3	$	-	$	3	$	-	$	106	$	-	$	114

Total Mortgage
800 and above	$	53,143	$	25,936	$	15,530	$	6,907	$	13,975	$	17,854	$	14,130	$	147,475
750-799		215,481		138,434		51,241		18,292		27,234		49,590		45,935		546,207
700-749		104,365		54,267		22,113		11,196		15,163		44,174		24,709		275,987
650-699		33,650		17,950		9,381		7,999		9,603		26,828		9,053		114,464
600-649		4,294		3,954		1,737		2,950		2,763		14,674		1,840		32,212
550-599		-		789		1,137		950		1,804		7,479		375		12,534
500-549		-		1,468		520		382		599		4,198		223		7,390
Under 500		-		616		338		397		917		872		250		3,390
Unknown		-		-		-		-		-		-		-		-
Total	$	410,933	$	243,414	$	101,997	$	49,073	$	72,058	$	165,669	$	96,515	$	1,139,659
Accrued interest excluded from total	$	945	$	574	$	302	$	166	$	196	$	506	$	309	$	2,998

(1)	Credit scores have been updated within the last twelve months.

	Installment (1)
	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Total
	(In thousands)
December 31, 2021
Boat lending
800 and above	$	7,513	$	5,786	$	6,015	$	4,906	$	2,968	$	4,433	$	31,621
750-799		47,434		24,968		21,052		15,681		9,797		10,971		129,903
700-749		19,180		9,724		8,263		6,467		3,109		4,953		51,696
650-699		3,845		1,679		2,301		1,223		1,166		1,378		11,592
600-649		373		419		209		327		185		604		2,117
550-599		237		81		91		113		115		191		828
500-549		-		49		-		85		-		67		201
Under 500		-		-		-		10		168		4		182
Unknown		-		-		-		-		-		-		-
Total	$	78,582	$	42,706	$	37,931	$	28,812	$	17,508	$	22,601	$	228,140
Accrued interest excluded from total	$	169	$	102	$	106	$	69	$	44	$	47	$	537

Recreational vehicle lending
800 and above	$	8,475	$	5,121	$	5,837	$	4,627	$	2,456	$	3,594	$	30,110
750-799		66,834		22,707		17,173		11,973		5,281		6,794		130,762
700-749		32,702		9,500		6,169		3,768		1,657		2,343		56,139
650-699		7,390		2,423		1,842		948		649		905		14,157
600-649		990		408		291		333		152		111		2,285
550-599		271		100		163		318		6		72		930
500-549		39		21		105		62		26		91		344
Under 500		-		-		11		-		-		7		18
Unknown		-		-		-		-		-		-		-
Total	$	116,701	$	40,280	$	31,591	$	22,029	$	10,227	$	13,917	$	234,745
Accrued interest excluded from total	$	265	$	93	$	78	$	56	$	26	$	28	$	546

Other
800 and above	$	2,328	$	1,424	$	1,493	$	882	$	357	$	695	$	7,179
750-799		13,923		9,093		6,074		3,175		2,183		2,731		37,179
700-749		10,791		5,426		3,301		1,899		906		2,194		24,517
650-699		20,167		1,715		1,249		657		561		1,332		25,681
600-649		761		368		272		190		284		357		2,232
550-599		159		42		127		167		46		154		695
500-549		8		53		56		55		38		98		308
Under 500		6		62		42		14		12		18		154
Unknown		975		-		-		-		-		-		975
Total	$	49,118	$	18,183	$	12,614	$	7,039	$	4,387	$	7,579	$	98,920
Accrued interest excluded from total	$	73	$	40	$	36	$	19	$	11	$	38	$	217

Total installment
800 and above	$	18,316	$	12,331	$	13,345	$	10,415	$	5,781	$	8,722	$	68,910
750-799		128,191		56,768		44,299		30,829		17,261		20,496		297,844
700-749		62,673		24,650		17,733		12,134		5,672		9,490		132,352
650-699		31,402		5,817		5,392		2,828		2,376		3,615		51,430
600-649		2,124		1,195		772		850		621		1,072		6,634
550-599		667		223		381		598		167		417		2,453
500-549		47		123		161		202		64		256		853
Under 500		6		62		53		24		180		29		354
Unknown		975		-		-		-		-		-		975
Total	$	244,401	$	101,169	$	82,136	$	57,880	$	32,122	$	44,097	$	561,805
Accrued interest excluded from total	$	507	$	235	$	220	$	144	$	81	$	113	$	1,300

(1)	Credit scores have been updated within the last twelve months.

The following tables summarize credit scores by loan class for our mortgage and installment loan portfolio segments at December 31, 2020:

	Mortgage
	1-4 Family Owner Occupied - Jumbo		1-4 Family Owner Occupied - Non-jumbo		1-4 Family Non-owner Occupied		1-4 Family 2nd Lien		Resort Lending		Total
	(In thousands)
December 31, 2020
800 and above	$	61,077	$	40,187	$	25,468	$	12,490	$	9,546	$	148,768
_750-799		223,177		70,642		82,124		42,138		27,530		445,611
_700-749		101,086		75,489		30,326		22,962		11,726		241,589
_650-699		40,296		44,344		13,182		11,269		6,393		115,484
_600-649		11,146		18,519		4,303		2,703		1,670		38,341
_550-599		-		11,021		2,388		1,608		917		15,934
_500-549		3,396		5,129		1,580		1,012		192		11,309
Under 500		-		2,242		405		348		73		3,068
Total	$	440,178	$	267,573	$	159,776	$	94,530	$	58,047	$	1,020,104
Accrued interest included in total	$	1,301	$	1,641	$	587	$	373	$	276	$	4,178

	Installment
	Boat Lending		Recreational Vehicle Lending		Other		Total
	(In thousands)
December 31, 2020
800 and above	$	32,231	$	29,223	$	9,154	$	70,608
_750-799		123,689		95,890		37,512		257,091
_700-749		38,223		33,476		25,262		96,961
_650-699		10,189		8,794		21,138		40,121
_600-649		2,083		1,305		3,730		7,118
_550-599		661		551		1,299		2,511
_500-549		342		283		767		1,392
Under 500		95		52		63		210
Unknown		-		-		510		510
Total	$	207,513	$	169,574	$	99,435	$	476,522
Accrued interest included in total	$	572	$	457	$	156	$	1,185

Other Mortgage Loans Service's Principal Balances

Mortgage loans serviced for others are not reported as assets on the Consolidated Statements of Financial Condition. The principal balances of these loans at December 31 follow:

	2021		2020
	(In thousands)
Mortgage loans serviced for :
Fannie Mae	$	1,753,255	$	1,656,060
Freddie Mac		1,344,675		1,095,877
Ginnie Mae		170,983		181,615
FHLB		49,581		39,294
Other		5,027		11,242
Total	$	3,323,521	$	2,984,088

Analysis of Capitalized Mortgage Loan Servicing Rights

An analysis of capitalized mortgage loan servicing rights for the years ended December 31 follows:

	2021			2020			2019
	(In thousands)
Balance at beginning of period	$	16,904		$	19,171		$	21,400
Originated servicing rights capitalized		11,436			13,957			7,303
Change in fair value due to price		3,380			(10,833	)		(6,408	)
Change in fair value due to pay downs		(5,488	)		(5,391	)		(3,124	)
Balance at end of year	$	26,232		$	16,904		$	19,171
Loans sold and serviced that have had servicing rights capitalized	$	3,323,521		$	2,982,833		$	2,580,705

OTHER REAL ESTATE (Tables)

12 Months Ended

Dec. 31, 2021

OTHER REAL ESTATE [Abstract]

Summary of Other Real Estate Activity

A summary of other real estate activity for the years ended December 31 follows⁽¹⁾:

	2021			2020			2019
	(In thousands)
Balance at beginning of year, net of valuation allowance	$	738		$	1,715		$	1,178
Loans transferred to other real estate		253			332			2,242
Sales of other real estate		(745	)		(1,161	)		(1,438	)
Additions to valuation allowance charged to expense		(11	)		(148	)		(267	)
Balance at end of year, net of valuation allowance	$	235		$	738		$	1,715

(1)	Table excludes other repossessed assets totaling $0.01 million and $0.03 million at December 31, 2021 and 2020, respectively.

Valuation Allowance for Other Real Estate Owned

	2021			2020			2019
	(In thousands)
Balance at beginning of year	$	90		$	92		$	144
Additions charged to expense		11			148			267
Direct write-downs upon sale		(70	)		(150	)		(319	)
Balance at end of year	$	31		$	90		$	92

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2021

PROPERTY AND EQUIPMENT [Abstract]

Summary of Property and Equipment

A summary of property and equipment at December 31 follows:

	2021			2020
	(In thousands)
Land and land improvements	$	17,296		$	17,083
Buildings		58,870			57,208
Equipment		74,844			72,542
		151,010			146,833
Accumulated depreciation and amortization		(114,606	)		(110,706	)
Property and equipment, net	$	36,404		$	36,127

GOODWILL AND OTHER INTANGIBLES (Tables)

12 Months Ended

Dec. 31, 2021

GOODWILL AND OTHER INTANGIBLES [Abstract]

Other Intangible Assets, Net of Amortization

Intangible assets, net of amortization, at December 31 follows:

	2021				2020
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
	(In thousands)

Amortized intangible assets - core deposits	$	11,916	$	8,580	$	11,916	$	7,610
Unamortized intangible assets - goodwill	$	28,300			$	28,300

Estimated Core Deposit Intangible Amortization

A summary of estimated core deposit intangible amortization at December 31, 2021, follows:

	(In thousands)

2022	$	785
2023		547
2024		516
2025		487
2026		460
2027 and thereafter		541
Total	$	3,336

DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2021

DEPOSITS [Abstract]

Summary of Interest Expense on Deposits

A summary of interest expense on deposits for the years ended December 31 follows:

	2021		2020		2019
	(In thousands)
Savings and interest-bearing checking	$	2,101	$	2,264	$	5,371
Reciprocal		764		2,158		6,024
Time		1,507		7,073		7,148
Brokered time		93		1,171		4,882
Total	$	4,465	$	12,666	$	23,425

Summary of Maturity of Time Deposits

A summary of the maturity of time deposits at December 31, 2021, follows (1):

	(In thousands)
2022	$	269,067
2023		43,692
2024		10,067
2025		5,834
2026		6,794
2027 and thereafter		338
Total	$	335,792

(1)	Includes time deposits, brokered time deposits and reciprocal time deposits

Summary of Reciprocal Deposits

A summary of reciprocal deposits at December 31 follows:

	2021		2020
	(In thousands)
Demand	$	559,664	$	515,092
Money market		2,546		3,308
Time		24,416		37,785
Total	$	586,626	$	556,185

OTHER BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2021

OTHER BORROWINGS [Abstract]

Other Borrowings

A summary of other borrowings at December 31 follows:

	2021		2020
	(In thousands)
Advances from the FHLB	$	30,000	$	30,000
Other		9		12
Total	$	30,009	$	30,012

FHLB Advances

The maturity dates, weighted average interest rates and contractually required repayments of FHLB advances at December 31 follow:

	2021					2020
	Amount		Rate			Amount		Rate
	(Dollars in thousands)
Fixed-rate advances - 2027 and thereafter	$	30,000		0.74	%	$	30,000		0.74	%

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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SUBORDINATED DEBT AND DEBENTURES [Abstract]

SUBORDINATED DEBT AND DEBENTURES (Tables)

12 Months Ended

Dec. 31, 2021

Information Regarding Subordinated Debentures

Summary information regarding subordinated debentures as of December 31 follows:

		2021
Entity Name	Issue Date
Entity Name	Issue Date	Subordinated Debentures			Trust Preferred Securities Issued			Common Stock Issued
		(In thousands)
IBC Capital Finance III	May 2007	$	12,372		$	12,000		$	372
IBC Capital Finance IV	September 2007		15,465			15,000			465
Midwest Guaranty Trust I	November 2002		7,732			7,500			232
TCSB Statutory Trust I	March 2005		5,155			5,000			155
Discount on TCSB Statutory Trust I			(1,132	)		(1,132	)		-
		$	39,592		$	38,368		$	1,224

		2020
Entity Name	Issue Date
Entity Name	Issue Date	Subordinated Debentures			Trust Preferred Securities Issued			Common Stock Issued
		(In thousands)
IBC Capital Finance III	May 2007	$	12,372		$	12,000		$	372
IBC Capital Finance IV	September 2007		15,465			15,000			465
Midwest Guaranty Trust I	November 2002		7,732			7,500			232
TCSB Statutory Trust I	March 2005		5,155			5,000			155
Discount on TCSB Statutory Trust I			(1,200	)		(1,200	)		-
		$	39,524		$	38,300		$	1,224

Subordinated Debentures and Trust Preferred Securities

Other key terms for the subordinated debentures and trust preferred securities that were outstanding at December 31, 2021 and 2020 follow:

Entity Name	Maturity Date	Interest Rate	First Permitted Redemption Date

IBC Capital Finance III	July 30, 2037	3 month LIBOR plus 1.60%	July 30, 2012
IBC Capital Finance IV	September 15, 2037	3 month LIBOR plus 2.85%	September 15, 2012
Midwest Guaranty Trust I	November 7, 2032	3 month LIBOR plus 3.45%	November 7, 2007
TCSB Statutory Trust I	March 17, 2035	3 month LIBOR plus 2.20%	March 17, 2010

COMMITMENTS AND CONTINGENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2021

COMMITMENTS AND CONTINGENT LIABILITIES [Abstract]

Financial Instruments with Off-balance Sheet Risk

A summary of financial instruments with off-balance sheet risk at December 31 follows:

	2021		2020
	(In thousands)
Financial instruments whose risk is represented by contract amounts
Commitments to extend credit	$	672,693	$	644,815
Standby letters of credit		9,208		9,361

Commercial Loan Portfolio with Greater Potential Risk

			% of
			Total
	Amount		Loans
	(Dollars in millions)
Commercial and industrial:
Retail	$	70		2.4	%
Food service		49		1.7
Hotel		40		1.4
		159		5.5

Commercial real estate:
Retail		109		3.8
Office		72		2.5
Multifamily		55		1.9
		236		8.1

Total	$	395		13.6	%

SHAREHOLDERS' EQUITY AND NET INCOME PER COMMON SHARE (Tables)

12 Months Ended

Dec. 31, 2021

SHAREHOLDERS' EQUITY AND NET INCOME PER COMMON SHARE [Abstract]

Reconciliation of Basic and Diluted Net Income Per Share

A reconciliation of basic and diluted net income per common share for the years ended December 31 follows:

	2021		2020		2019
	(In thousands, except per share amounts)

Net income	$	62,895	$	56,152	$	46,435

Weighted average shares outstanding (1)		21,585		21,977		22,894
Stock units for deferred compensation plan for non-employee directors		121		121		132
Effect of stock options		69		90		115
Performance share units		32		33		42
Weighted average shares outstanding for calculation of diluted earnings per share		21,807		22,221		23,183

Net income per common share
Basic (1)	$	2.91	$	2.56	$	2.03
Diluted	$	2.88	$	2.53	$	2.00

(1)	Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards.

INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2021

INCOME TAX [Abstract]

Composition of Income Tax Expense

The composition of income tax expense for the years ended December 31 follows:

	2021		2020			2019
	(In thousands)
Current expense	$	12,506	$	15,459		$	10,237
Deferred expense (benefit)		1,912		(2,130	)		1,088
Income tax expense	$	14,418	$	13,329		$	11,325

Reconciliation of Income Tax Expense Computed by Applying the Statutory Federal Income Tax Rate

	2021			2020			2019
	(In thousands)
Statutory rate applied to income before income tax	$	16,236		$	14,591		$	12,130
Tax-exempt income		(1,487	)		(690	)		(375	)
Share-based compensation		(184	)		(204	)		(204	)
Bank owned life insurance		(119	)		(196	)		(233	)
Unrecognized tax benefit		(11	)		(206	)		(134	)
Non-deductible meals, entertainment and memberships		32			57			86
Other, net		(49	)		(23	)		55
Income tax expense	$	14,418		$	13,329		$	11,325

Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31 follow:

	2021		2020
	(In thousands)
Deferred tax assets
Allowance for credit losses (1)	$	9,923	$	7,363
Property and equipment		1,405		1,047
Lease liabilities		1,386		1,652
Reserve for unfunded lending commitments		941		379
Share-based compensation		734		742
Deferred compensation		390		321
Loss reimbursement on sold loans reserve		242		214
Non accrual loan interest income		194		203
Other than temporary impairment charge on securities available for sale		144		144
Other		276		-
Gross deferred tax assets		15,635		12,065
Deferred tax liabilities
Capitalized mortgage loan servicing rights		5,509		3,550
Deferred loan fees		2,011		1,901
Unrealized gain on securities available for sale		1,674		4,206
Lease right of use asset		1,361		1,606
Purchase premiums, net		735		509
Other		-		18
Gross deferred tax liabilities		11,290		11,790
Deferred tax assets, net (2)	$	4,345	$	275

(1)	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

(2)	Included in accrued income and other assets on the Consolidated Statements of Financial Position.

Changes in Unrecognized Tax Benefits

Changes in unrecognized tax benefits for the years ended December 31 follow:

	2021			2020			2019
	(In thousands)

Balance at beginning of year	$	180		$	438		$	588
Additions based on tax positions related to the current year		11			15			20
Reductions due to the statute of limitations		(11	)		(273	)		(170	)
Reductions due to settlements		-			-			-
Balance at end of year	$	180		$	180		$	438

SHARE BASED COMPENSATION AND BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2021

SHARE BASED COMPENSATION AND BENEFIT PLANS [Abstract]

Outstanding Stock Option Grants and Transactions

A summary of outstanding stock option grants and related transactions follows:

	Number of Shares			Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregated Intrinsic Value
								(In thousands)
Outstanding at January 1,2021		121,189		$	4.81
Granted		-
Exercised		(40,350	)		2.90
Forfeited		-
Expired		-
Outstanding at December 31, 2021		80,839		$	5.76		1.6	$	1,464

Vested and expected to vest at December 31, 2021		80,839		$	5.76		1.6	$	1,464
Exercisable at December 31, 2021		80,839		$	5.76		1.6	$	1,464

Non-Vested Restricted Stock, Restricted Stock Units and PSU's

A summary of outstanding non-vested stock and related transactions follows:

	Number of Shares			Weighted- Average Grant Date Fair Value
Outstanding at January 1, 2021		207,117		$	22.70
Granted		114,565			20.45
Vested		(73,081	)		22.82
Forfeited		(14,375	)		21.89
Outstanding at December 31, 2021		234,226		$	21.64

Information Regarding Options Exercised

Certain information regarding options exercised during the periods ending December 31 follows:

	2021		2020		2019
	(In thousands)
Intrinsic value	$	752	$	293	$	897
Cash proceeds received	$	117	$	57	$	706
Tax benefit realized	$	158	$	61	$	188

OTHER NON-INTEREST INCOME (Tables)

12 Months Ended

Dec. 31, 2021

OTHER NON-INTEREST INCOME [Abstract]

Other Non-interest Income

Other non-interest income for the years ended December 31 follows:

	2021		2020		2019
	(In thousands)
Investment and insurance commissions	$	2,603	$	1,971	$	1,658
ATM fees		1,133		1,197		1,403
Bank owned life insurance		567		910		1,111
Other		5,089		3,443		5,110
Total other non-interest income	$	9,392	$	7,521	$	9,282

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2021

DERIVATIVE FINANCIAL INSTRUMENTS [Abstract]

Derivative Financial Instruments According to Type of Hedge Designation

Our derivative financial instruments according to the type of hedge in which they are designated at December 31 follow:

	2021
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
Fair value hedge designation
Pay-fixed interest rate swap agreements - commercial	$	6,753		7.4	$	(384	)
Pay-fixed interest rate swap agreements - securities available for sale		148,895		5.8		4,413
Total	$	155,648		5.9	$	4,029

No hedge designation
Rate-lock mortgage loan commitments	$	129,846		0.1	$	2,140
Mandatory commitments to sell mortgage loans		97,737		0.1		(68	)
Interest rate swaption agreement		10,000		0.2		186
Pay-fixed interest rate swap agreements - commercial		207,080		5.7		(5,179	)
Pay-variable interest rate swap agreements - commercial		207,080		5.7		5,179
Interest rate cap agreements		90,000		1.3		35
Total	$	741,743		3.4	$	2,293

	2020
	Notional Amount		Average Maturity (years)		Fair Value
	(Dollars in thousands)
Fair value hedge designation
Pay-fixed interest rate swap agreements - commercial	$	7,088		8.4	$	(776	)
Pay-fixed interest rate swap agreements - securities available for sale		41,950		7.1		15
Total	$	49,038		7.3	$	(761	)

No hedge designation
Rate-lock mortgage loan commitments	$	168,816		0.1	$	7,020
Mandatory commitments to sell mortgage loans		186,092		0.1		(941	)
Pay-fixed interest rate swap agreements - commercial		147,456		4.5		(9,700	)
Pay-variable interest rate swap agreements - commercial		147,456		4.5		9,700
Pay-fixed interest rate swap agreements		25,000		0.6		(295	)
Interest rate cap agreements		135,000		1.8		5
Purchased options		2,908		0.5		42
Written options		2,848		0.5		(42	)
Total	$	815,576		2.0	$	5,789

Fair Value of Derivative Instruments

Fair Values of Derivative Instruments

	Asset Derivatives								Liability Derivatives
	December 31,								December 31,
	2021				2020				2021				2020
	Balance Sheet Location		Fair Value		Balance Sheet Location		Fair Value		Balance Sheet Location		Fair Value		Balance Sheet Location		Fair Value
	(In thousands)
Derivatives designated as hedging instruments		-				-				-				-
Pay-fixed interest rate swap agreements	Other assets		$	4,413	Other assets		$	15	Other liabilities		$	384	Other liabilities		$	776
Derivatives not designated as hedging instruments
Rate-lock mortgage loan commitments	Other assets		$	2,140	Other assets		$	7,020	Other liabilities		$	-	Other liabilities		$	-
Mandatory commitments to sell mortgage loans	Other assets			-	Other assets			-	Other liabilities			68	Other liabilities			941
Interest rate swaption agreement	Other assets			186	Other assets			-	Other liabilities			-	Other liabilities			-
Pay-fixed interest rate swap agreements - commercial	Other assets			165	Other assets			-	Other liabilities			5,344	Other liabilities			9,700
Pay-variable interest rate swap agreements - commercial	Other assets			5,344	Other assets			9,700	Other liabilities			165	Other liabilities			-
Pay-fixed interest rate swap agreements	Other assets			-	Other assets			-	Other liabilities			-	Other liabilities			295
Interest rate cap agreements	Other assets			35	Other assets			5	Other liabilities			-	Other liabilities			-
Purchased options	Other assets			-	Other assets			42	Other liabilities			-	Other liabilities			-
Written options	Other assets			-	Other assets			-	Other liabilities			-	Other liabilities			42
				7,870				16,767				5,577				10,978
Total derivatives			$	12,283			$	16,782			$	5,961			$	11,754

Effect of Derivative Financial Instruments on Consolidated Statement of Operations

The effect of derivative financial instruments on the Consolidated Statements of Operations follows:

Year Ended December 31,
	Gain (loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion)								Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion)	Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion)							Location of Gain (Loss) Recognized in Income	Gain (Loss) Recognized in Income
	2021		2020			2019				2021		2020			2019		Location of Gain (Loss) Recognized in Income	2021			2020			2019
	(In thousands)
Fair Value Hedges
Pay-fixed interest rate swap agreement - commercial																	Interest and fees on loans	$	392		$	(534	)	$	(242	)
Pay-fixed interest rate swap agreement - securities available for sale																	Interest on securities available for sale - tax-exempt		4,398			15			-
Total																		$	4,790		$	(519	)	$	(242	)
Cash Flow Hedges
Interest rate cap agreements	$	-	$	125		$	(1,211	)	Interest expense	$	-	$	(1,885	)	$	363
Pay-fixed interest rate swap agreements		-		(479	)		(392	)	Interest expense		-		(654	)		62
Total	$	-	$	(354	)	$	(1,603	)		$	-	$	(2,539	)	$	425
No hedge designation
Rate-lock mortgage loan commitments																	Net gains on mortgage loans	$	(4,880	)	$	5,608		$	725
Mandatory commitments to sell mortgage loans																	Net gains on mortgage loans		873			(791	)		233
Interest rate swaption agreement																	Net gains on mortgage loans		(2	)		-			-
Pay-fixed interest rate swap agreements - commercial																	Interest income		4,521			(6,059	)		(4,046	)
Pay-variable interest rate swap agreements -commercial																	Interest income		(4,521	)		6,059			4,046
Pay-fixed interest rate swap agreements																	Interest expense		295			231			-
Interest rate cap agreements																	Interest expense		30			(57	)		-
Purchased options																	Interest expense		(42	)		(99	)		25
Written options																	Interest expense		42			97			(23	)
Total																		$	(3,684	)	$	4,989		$	960

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2021

Summary of Loans to Directors and Executive Officers

A summary of loans to our directors and executive officers (which includes loans to entities in which the individual owns a 10% or more voting interest) for the years ended December 31 follows:

	2021			2020
	(In thousands)

Balance at beginning of year	$	2,416		$	13,077
New loans and advances		5,722			417
Repayments		(1,259	)		(11,078	)
Balance at end of year	$	6,879		$	2,416

LEASES (Tables)

12 Months Ended

Dec. 31, 2021

LEASES [Abstract]

Components of Operating Leases

The cost components of our operating leases follows:

	2021		2020		2019
	(In thousands)
Operating lease cost	$	1,672	$	1,780	$	2,217
Variable lease cost		63		69		142
Short-term lease cost		64		36		19
Total	$	1,799	$	1,885	$	2,378

Supplemental Balance Sheet Information Related to Operating Leases

Supplemental balance sheet information related to our operating leases follows:

	2021			2020
	(In thousands)
Lease right of use asset (1)	$	6,481		$	7,646
Lease liabilities (2)	$	6,602		$	7,868

Weighted average remaining lease term (years)		6.50			7.12
Weighted average discount rate		2.3	%		2.4	%

(1)	Included in Accrued income and other assets in our Consolidated Statements of Financial Condition.

(2)	Included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition.

Maturity Analysis of Lease Liabilities

Maturity analysis of our lease liabilities at December 31, 2021 based on required contractual payments follows:

	(In thousands)

2022	$	1,619
2023		1,311
2024		816
2025		809
2026		744
2027 and thereafter		1,795
Total lease payments		7,094
Less imputed interest		(492	)
Total	$	6,602

REGULATORY MATTERS (Tables)

12 Months Ended

Dec. 31, 2021

REGULATORY MATTERS [Abstract]

Actual Capital Amounts and Ratios and Components of Regulatory Capital

Our actual capital amounts and ratios at December 31 follow⁽¹⁾:

	Actual					Minimum for Adequately Capitalized Institutions					Minimum for Well-Capitalized Institutions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
2021
Total capital to risk-weighted assets
Consolidated	$	488,495		14.53	%	$	268,991		8.00	%	NA		NA
Independent Bank		438,352		13.05			268,808		8.00		$	336,011		10.00	%

Tier 1 capital to risk-weighted assets
Consolidated	$	406,645		12.09	%	$	201,743		6.00	%	NA		NA
Independent Bank		396,351		11.80			201,606		6.00		$	268,808		8.00	%

Common equity tier 1 capital to risk-weighted assets
Consolidated	$	368,277		10.95	%	$	151,307		4.50	%	NA		NA
Independent Bank		396,351		11.80			151,205		4.50		$	218,407		6.50	%

Tier 1 capital to average assets
Consolidated	$	406,645		8.79	%	$	185,034		4.00	%	NA		NA
Independent Bank		396,351		8.57			185,077		4.00		$	231,347		5.00	%

2020
Total capital to risk-weighted assets
Consolidated	$	455,072		15.95	%	$	228,214		8.00	%	NA		NA
Independent Bank		401,005		14.06			228,111		8.00		$	285,139		10.00	%

Tier 1 capital to risk-weighted assets
Consolidated	$	379,395		13.30	%	$	171,161		6.00	%	NA		NA
Independent Bank		365,343		12.81			171,083		6.00		$	228,111		8.00	%

Common equity tier 1 capital to risk-weighted assets
Consolidated	$	341,095		11.96	%	$	128,370		4.50	%	NA		NA
Independent Bank		365,343		12.81			128,312		4.50		$	185,340		6.50	%

Tier 1 capital to average assets
Consolidated	$	379,395		9.15	%	$	165,825		4.00	%	NA		NA
Independent Bank		365,343		8.81			165,828		4.00		$	207,285		5.00	%

(1)	These ratios do not reflect a capital conservation buffer of 2.50% at December 31, 2021 and 2020.

NA - Not applicable

Regulatory Capital

The components of our regulatory capital are as follows:

	Consolidated						Independent Bank
	December 31,						December 31,
	2021			2020			2021			2020
	(In thousands)
Total shareholders’ equity	$	398,484		$	389,522		$	426,558		$	413,770
Add (deduct)
Accumulated other comprehensive loss for regulatory purposes		(6,298	)		(15,821	)		(6,298	)		(15,821	)
Goodwill and other intangibles		(31,636	)		(32,606	)		(31,636	)		(32,606	)
CECL (1)		7,727			-			7,727			-
Common equity tier 1 capital		368,277			341,095			396,351			365,343
Qualifying trust preferred securities		38,368			38,300			-			-
Tier 1 capital		406,645			379,395			396,351			365,343
Subordinated debt		40,000			40,000			-			-
Allowance for credit losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets (2)		41,850			35,677			42,001			35,662
Total risk-based capital	$	488,495		$	455,072		$	438,352		$	401,005

(1)	We elected the three year CECL transition method for regulatory purposes.

(2)	Beginning January 1, 2021, calculation of allowances are based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

FAIR VALUE DISCLOSURES (Tables)

12 Months Ended

Dec. 31, 2021

FAIR VALUE DISCLOSURES [Abstract]

Assets and Liabilities Measured at Fair Value

Assets and liabilities measured at fair value, including financial assets for which we have elected the fair value option, were as follows:

			Fair Value Measurements Using
	Fair Value Measure- ments		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Un- observable Inputs (Level 3)
	(In thousands)
December 31, 2021:
Measured at Fair Value on a Recurring Basis
Assets
Securities available for sale
U.S. agency	$	34,674	$	-	$	34,674	$	-
U.S. agency residential mortgage-backed		307,985		-		307,985		-
U.S. agency commercial mortgage-backed		22,926		-		22,926		-
Private label mortgage-backed		102,615		-		102,615		-
Other asset backed		216,170		-		216,170		-
Obligations of states and political subdivisions		576,076		-		576,076		-
Corporate		149,959		-		149,959		-
Trust preferred		1,919		-		1,919		-
Foreign government		506		-		506		-
Loans held for sale, carried at fair value		55,470		-		55,470		-
Capitalized mortgage loan servicing rights		26,232		-		-		26,232
Derivatives (1)		12,283		-		12,283		-
Liabilities
Derivatives (2)		5,961		-		5,961		-

Measured at Fair Value on a Non-recurring Basis:
Assets
Collateral dependent loans (3)
Commercial
Commercial and industrial		274		-		-		274
Commercial real estate		65		-		-		65
Mortgage
1-4 family owner occupied - non-jumbo		516		-		-		516
1-4 family non-owner occupied		130		-		-		130
1-4 family - 2nd lien		121		-		-		121
Resort lending		77		-		-		77
Installment
Boat lending		51		-		-		51
Recreational vehicle lending		77		-		-		77
Other		45		-		-		45

(1)	Included in accrued income and other assets in the Consolidated Statements of Financial Condition.

(2)	Included in accrued expenses and other liabilities in the Consolidated Statements of Financial Condition.

(3)	Only includes individually evaluated loans with specific loss allocations based on collateral value.

			Fair Value Measurements Using
	Fair Value Measure- ments		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Un- observable Inputs (Level 3)
	(In thousands)
December 31, 2020:
Measured at Fair Value on a Recurring Basis
Assets
Securities available for sale
U.S. agency	$	10,748	$	-	$	10,748	$	-
U.S. agency residential mortgage-backed		344,582		-		344,582		-
U.S. agency commercial mortgage-backed		7,195		-		7,195		-
Private label mortgage-backed		42,829		-		42,829		-
Other asset backed		254,181		-		254,181		-
Obligations of states and political subdivisions		324,293		-		324,293		-
Corporate		86,017		-		86,017		-
Trust preferred		1,798		-		1,798		-
Foreign government		516		-		516		-
Loans held for sale, carried at fair value		92,434		-		92,434		-
Capitalized mortgage loan servicing rights		16,904		-		-		16,904
Derivatives (1)		16,782		-		16,782		-
Liabilities
Derivatives (2)		11,754		-		11,754		-

Measured at Fair Value on a Non-recurring Basis:
Assets
Impaired loans (3)
Commercial
Commercial and industrial		1,468		-		-		1,468
Commercial real estate		6,586		-		-		6,586
Mortgage
1-4 family owner occupied - jumbo		-		-		-		-
1-4 family owner occupied - non-jumbo		321		-		-		321
1-4 family non-owner occupied		155		-		-		155
1-4 family - 2nd lien		324		-		-		324
Resort lending		61		-		-		61
Installment
Boat lending		4		-		-		4
Recreational vehicle lending		31		-		-		31
Other		124		-		-		124
Other real estate (4)
1-4 family owner occupied - non-jumbo		102		-		-		102

(1)	Included in accrued income and other assets in the Consolidated Statements of Financial Condition.

(2)	Included in accrued expenses and other liabilities in the Consolidated Statements of Financial Condition.

(3)	Only includes impaired loans with specific loss allocations based on collateral value.

(4)	Only includes other real estate with subsequent write downs to fair value.

Changes in Fair Value for Financial Assets

Changes in fair values of financial assets for which we have elected the fair value option for the years ended December 31 were as follows:

	Net Gains (Losses) on Assets							Total Change in Fair Values Included
	Securities Available For Sale		Mortgage Loans		Mortgage Loan Servicing, net			in Current Period Earnings
	(In thousands)

2021
Loans held for sale	$	-	$	(2,805)	$	-		$	(2,805)
Capitalized mortgage loan servicing rights		-		-		(2,108	)		(2,108	)

2020
Loans held for sale		-		1,962		-			1,962
Capitalized mortgage loan servicing rights		-		-		(16,224	)		(16,224	)

2019
Equity securities at fair value		167		-		-			167
Loans held for sale		-		637		-			637
Capitalized mortgage loan servicing rights		-		-		(9,532	)		(9,532	)

Reconciliation for all Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

A reconciliation for all assets and (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31 follows:

	Capitalized Mortgage Loan Servicing Rights
	2021			2020			2019
	(In thousands)
Beginning balance	$	16,904		$	19,171		$	21,400
Total losses realized and unrealized:
Included in results of operations		(2,108	)		(16,224	)		(9,532	)
Included in other comprehensive income (loss)		-			-			-
Purchases, issuances, settlements, maturities and calls		11,436			13,957			7,303
Transfers in and/or out of Level 3		-			-			-
Ending balance	$	26,232		$	16,904		$	19,171

Amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets and liabilities still held at December 31	$	(2,108	)	$	(16,224	)	$	(9,532	)

Quantitative Information About Level 3 Fair Value Measurements Measured on a Recurring Basis and Non-recurring Basis

	Asset Fair Value		Valuation Technique		Unobservable Inputs		Range			Weighted Average
	(In thousands)			-		-		-			-
2021
Capitalized mortgage loan servicing rights	$	26,232	Present value of net		Discount rate			10.00% to 13.00	%		10.07	%
			servicing revenue		Cost to service		$	67 to $281		$	78
					Ancillary income		20 to 30				21
					Float rate			1.36	%		1.36	%
					Prepayment rate			7.02% to 44.21	%		13.92	%

2020
Capitalized mortgage loan servicing rights	$	16,904	Present value of net		Discount rate			10.00% to 13.00	%		10.09	%
			servicing revenue		Cost to service		$	69 to $289		$	79
					Ancillary income		20 to 37				22
					Float rate			0.43	%		0.43	%
					Prepayment rate			7.92% to 64.70	%		20.85	%

Quantitative information about Level 3 fair value measurements measured on a non-recurring basis follows:

Asset

Fair

Value

Valuation

Technique

Unobservable

Inputs

Range

Weighted

Average

(In thousands)

2021

Collateral dependent loans

Commercial

339

Sales comparison

Adjustment for differences

approach

between comparable sales

(12.5)% to 12.0

1.5

Mortgage and Installment (1)

1,017

Sales comparison

Adjustment for differences

approach

between comparable sales

(30.1) to 29.3

0.2

Other real estate

2020

Impaired loans

Commercial

8,054

Sales comparison

Adjustment for differences

approach

between comparable sales

(40.0)% to 75.0

3.8

Mortgage and Installment (1)

1,020

Sales comparison

Adjustment for differences

approach

between comparable sales

(73.3) to 104.6

(1.5

)

Other real estate

Mortgage

102

Sales comparison

Adjustment for differences

approach

between comparable sales

(13.1) to 2.4

(3.6

)

(1)

Aggregate Fair Value and Aggregate Remaining Contractual Principal Balance for Loans Held for Sale

	Aggregate Fair Value		Difference		Contractual Principal
	(In thousands)
Loans held for sale
2021	$	55,470	$	1,051	$	54,419
2020		92,434		3,856		88,578
2019		69,800		1,894		67,906

FAIR VALUES OF FINANCIAL INSTRUMENTS [Abstract]

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Estimated Fair Values and Recorded Book Balances

The estimated recorded book balances and fair values at December 31 follow:

					Fair Value Using
	Recorded Book Balance		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Un- observable Inputs (Level 3)
	(In thousands)
2021
Assets
Cash and due from banks	$	51,069	$	51,069	$	51,069	$	-	$	-
Interest bearing deposits		58,404		58,404		58,404		-		-
Securities available for sale		1,412,830		1,412,830		-		1,412,830		-
Federal Home Loan Bank and Federal Reserve Bank Stock		18,427	NA		NA		NA		NA
Net loans and loans held for sale		2,948,074		2,931,079		35,233		55,470		2,840,376
Accrued interest receivable		12,865		12,865		1		6,028		6,836
Derivative financial instruments		12,283		12,283		-		12,283		-
Liabilities
Deposits with no stated maturity (1)	$	3,781,298	$	3,781,298	$	3,781,298	$	-	$	-
Deposits with stated maturity (1)		335,792		336,006		-		336,006		-
Other borrowings		30,009		30,155		-		30,155		-
Subordinated debt		39,357		44,999		-		44,999		-
Subordinated debentures		39,592		33,866		-		33,866		-
Accrued interest payable		497		497		67		430		-
Derivative financial instruments		5,961		5,961		-		5,961		-
2020
Assets
Cash and due from banks	$	56,006	$	56,006	$	56,006	$	-	$	-
Interest bearing deposits		62,699		62,699		62,699		-		-
Securities available for sale		1,072,159		1,072,159		-		1,072,159		-
Federal Home Loan Bank and Federal Reserve Bank Stock		18,427	NA		NA		NA		NA
Net loans and loans held for sale		2,790,683		2,794,058		-		92,434		2,701,624
Accrued interest receivable		12,315		12,315		3		3,414		8,898
Derivative financial instruments		16,782		16,782		-		16,782		-

Liabilities
Deposits with no stated maturity (1)	$	3,198,338	$	3,198,338	$	3,198,338	$	-	$	-
Deposits with stated maturity (1)		439,017		441,457		-		441,457		-
Other borrowings		30,012		30,844		-		30,844		-
Subordinated debt		39,281		41,417		-		41,417		-
Subordinated debentures		39,524		30,265		-		30,265		-
Accrued interest payable		601		601		59		542		-
Derivative financial instruments		11,754		11,754		-		11,754		-

NA – Not applicable

(1)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

12 Months Ended

Dec. 31, 2021

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract]

Accumulated Other Comprehensive Income (Loss) (AOCIL), Net of Tax

A summary of changes in accumulated other comprehensive income (loss) (‘‘AOCIL’’), net of tax during the years ended December 31 follows:

	Unrealized Gains (Losses) on Securities Available for Sale			Dispropor- tionate Tax Effects from Securities Available for Sale			Unrealized Losses on Cash Flow Hedges			Total
	(In thousands)
2021
Balances at beginning of period	$	15,822		$	(5,798	)	$	-		$	10,024
Other comprehensive loss before reclassifications		(8,408	)		-			-			(8,408	)
Amounts reclassified from AOCIL		(1,115	)		-			-			(1,115	)
Net current period other comprehensive loss		(9,523	)		-			-			(9,523	)
Balances at end of period	$	6,299		$	(5,798	)	$	-		$	501

2020
Balances at beginning of period	$	3,739		$	(5,798	)	$	(1,727	)	$	(3,786	)
Other comprehensive income (loss) before reclassifications		12,294			-			(279	)		12,015
Amounts reclassified from AOCIL		(211	)		-			2,006			1,795
Net current period other comprehensive income		12,083			-			1,727			13,810
Balances at end of period	$	15,822		$	(5,798	)	$	-		$	10,024

2019
Balances at beginning of period	$	(4,185	)	$	(5,798	)	$	(125	)	$	(10,108	)
Other comprehensive income (loss) before reclassifications		8,035			-			(1,266	)		6,769
Amounts reclassified from AOCIL		(111	)		-			(336	)		(447	)
Net current period other comprehensive income (loss)		7,924			-			(1,602	)		6,322
Balances at end of period	$	3,739		$	(5,798	)	$	(1,727	)	$	(3,786	)

Reclassifications Out of Each Component of AOCIL

A summary of reclassifications out of each component of AOCIL for the years ended December 31 follows:

AOCIL Component	Reclassified From AOCIL			Affected Line Item in Consolidated Statements of Operations
	(In thousands)

2021
Unrealized gains (losses) on securities available for sale	$	1,411		Net gains on securities available for sale
		-		Net impairment loss recognized in earnings
		1,411		Total reclassifications before tax
		296		Income tax expense
	$	1,115		Reclassifications, net of tax

2020
Unrealized gains (losses) on securities available for sale	$	267		Net gains on securities available for sale
		-		Net impairment loss recognized in earnings
		267		Total reclassifications before tax
		56		Income tax expense
	$	211		Reclassifications, net of tax

Unrealized gains (losses) on cash flow hedges	$	2,539		Interest expense
		533		Income tax expense
	$	2,006		Reclassification, net of tax

	$	(1,795	)	Total reclassifications for the period, net of tax

2019
Unrealized gains (losses) on securities available for sale	$	140		Net gains on securities available for sale
		-		Net impairment loss recognized in earnings
		140		Total reclassifications before tax
		29		Income tax expense
	$	111		Reclassifications, net of tax

Unrealized gains (losses) on cash flow hedges	$	(425	)	Interest expense
		(89	)	Income tax expense
	$	(336	)	Reclassification, net of tax

	$	447		Total reclassifications for the period, net of tax

INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2021

INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION [Abstract]

Condensed Statements of Financial Condition

CONDENSED STATEMENTS OF FINANCIAL CONDITION
	December 31,
	2021		2020
	(In thousands)
ASSETS
Cash and due from banks	$	6,093	$	10,466
Interest bearing deposits - time		40,000		40,000
Investment in subsidiaries		432,949		418,465
Accrued income and other assets		96		805
Total Assets	$	479,138	$	469,736

LIABILITIES AND SHAREHOLDERS’ EQUITY
Subordinated debt	$	39,357	$	39,281
Subordinated debentures		39,592		39,524
Accrued expenses and other liabilities		844		684
Shareholders’ equity		399,345		390,247
Total Liabilities and Shareholders’ Equity	$	479,138	$	469,736

Condensed Statements of Operations

CONDENSED STATEMENTS OF OPERATIONS

	Year Ended December 31,
	2021			2020			2019
	(In thousands)
OPERATING INCOME
Dividends from subsidiary	$	32,000		$	24,000		$	29,000
Interest income		55			99			230
Other income		33			42			61
Total Operating Income		32,088			24,141			29,291

OPERATING EXPENSES
Interest expense		3,625			2,893			2,104
Administrative and other expenses		787			733			655
Total Operating Expenses		4,412			3,626			2,759
Income Before Income Tax and Equity in Undistributed Net Income of Subsidiaries		27,676			20,515			26,532
Income tax benefit		(1,048	)		(937	)		(423	)
Income Before Equity in Undistributed Net Income of Subsidiaries		28,724			21,452			26,955
Equity in undistributed net income of subsidiaries		34,171			34,700			19,480
Net Income	$	62,895		$	56,152		$	46,435

Condensed Statements of Cash Flows

CONDENSED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2021			2020			2019
	(In thousands)
Net Income	$	62,895		$	56,152		$	46,435
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH FROM OPERATING ACTIVITIES
Deferred income tax (benefit) expense		(81	)		(34	)		1,503
Share based compensation		95			89			65
Accretion of discount on subordinated debt and debentures		144			113			68
(Increase) decrease in accrued income and other assets		788			(307	)		891
Increase in accrued expenses and other liabilities		159			109			45
Equity in undistributed net income of subsidiaries		(34,171	)		(34,700	)		(19,480	)
Total Adjustments		(33,066	)		(34,730	)		(16,908	)
Net Cash From Operating Activities		29,829			21,422			29,527

CASH FLOW FROM (USED IN) INVESTING ACTIVITIES
Purchases of interest bearing deposits - time		(160,000	)		(85,000	)		(20,000	)
Maturity of interest bearing deposits - time		160,000			55,000			35,000
Net Cash From (Used In) Investing Activities		-			(30,000	)		15,000

CASH FLOW FROM (USED IN) FINANCING ACTIVITIES
Proceeds from issuance of subordinated debt, net of issuance costs		-			39,236			-
Dividends paid		(18,155	)		(17,618	)		(16,554	)
Proceeds from issuance of common stock		1,913			1,907			2,074
Share based compensation withholding obligation		(691	)		(755	)		(882	)
Repurchase of common stock		(17,269	)		(14,231	)		(26,284	)
Net Cash From (Used In) Financing Activities		(34,202	)		8,539			(41,646	)
Net Increase (Decrease) in Cash and Cash Equivalents		(4,373	)		(39	)		2,881
Cash and Cash Equivalents at Beginning of Year		10,466			10,505			7,624
Cash and Cash Equivalents at End of Year	$	6,093		$	10,466		$	10,505

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

12 Months Ended

Dec. 31, 2021

REVENUE FROM CONTRACTS WITH CUSTOMERS [Abstract]

Disaggregation of Revenue Sources by Attribute

Disaggregation of our revenue sources by attribute for the years ended December 31 follow:

2021
	Service Charges on Deposit Accounts		Other Deposit Related Income		Interchange Income		Investment and Insurance Commissions		Total
	(In thousands)
Retail
Overdraft fees	$	8,431	$	-	$	-	$	-	$	8,431
Account service charges		1,130		-		-		-		1,130
ATM fees		-		1,109		-		-		1,109
Other		-		819		-		-		819
Business
Overdraft fees		609		-		-		-		609
ATM fees		-		24		-		-		24
Other		-		328		-		-		328
Interchange income		-		-		14,045		-		14,045
Asset management revenue		-		-		-		1,689		1,689
Transaction based revenue		-		-		-		914		914

Total	$	10,170	$	2,280	$	14,045	$	2,603	$	29,098

Reconciliation to Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income									$	2,280
Investment and insurance commissions										2,603
Bank owned life insurance										567
Other										3,942
Total									$	9,392

2020
	Service Charges on Deposit Accounts		Other Deposit Related Income		Interchange Income		Investment and Insurance Commissions		Total
	(In thousands)
Retail
Overdraft fees	$	5,627	$	-	$	-	$	-	$	5,627
Account service charges		2,017		-		-		-		2,017
ATM fees		-		1,173		-		-		1,173
Other		-		769		-		-		769
Business
Overdraft fees		873		-		-		-		873
ATM fees		-		24		-		-		24
Other		-		342		-		-		342
Interchange income		-		-		11,230		-		11,230
Asset management revenue		-		-		-		1,283		1,283
Transaction based revenue		-		-		-		688		688

Total	$	8,517	$	2,308	$	11,230	$	1,971	$	24,026

Reconciliation to Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income									$	2,308
Investment and insurance commissions										1,971
Bank owned life insurance										910
Other										2,332
Total									$	7,521

2019
	Service Charges on Deposit Accounts		Other Deposit Related Income		Interchange Income		Investment and Insurance Commissions		Total
	(In thousands)
Retail
Overdraft fees	$	7,590	$	-	$	-	$	-	$	7,590
Account service charges		2,103		-		-		-		2,103
ATM fees		-		1,368		-		-		1,368
Other		-		965		-		-		965
Business
Overdraft fees		1,515		-		-		-		1,515
ATM fees		-		35		-		-		35
Other		-		422		-		-		422
Interchange income		-		-		10,297		-		10,297
Asset management revenue		-		-		-		1,123		1,123
Transaction based revenue		-		-		-		535		535

Total	$	11,208	$	2,790	$	10,297	$	1,658	$	25,953

Reconciliation to Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income									$	2,790
Investment and insurance commissions										1,658
Bank owned life insurance										1,111
Other										3,723
Total									$	9,282

ACCOUNTING POLICIES, Nature of Operations (Details)	Dec. 31, 2021
ACCOUNTING POLICIES [Abstract]
Percentage of loan portfolio secured by real estate	69.00%

ACCOUNTING POLICIES, Operating Segments (Details) - Segment	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating Segments [Abstract]
Number of reportable segments	1	1	1

ACCOUNTING POLICIES, Capitalized Mortgage Loan Servicing Rights (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Mortgage Loan Servicing Rights [Abstract]
Mortgage loan servicing fees	$ 7.9	$ 6.9	$ 6.2

ACCOUNTING POLICIES, Loan Revenue Recognition (Details)	12 Months Ended
ACCOUNTING POLICIES, Loan Revenue Recognition (Details)	Dec. 31, 2021 Payment
Loan Revenue Recognition [Abstract]
Number of past due days for commercial loan, installment loans and payment plan receivables	90 days
Number of consecutive payments for mortgage loans missed	4

ACCOUNTING POLICIES, Property and Equipment (Details) - Maximum [Member]	12 Months Ended
	Dec. 31, 2021
Building [Member]
Property, Plant and Equipment, Useful Life [Abstract]
Estimated useful lives	39 years
Equipment [Member]
Property, Plant and Equipment, Useful Life [Abstract]
Estimated useful lives	7 years

ACCOUNTING POLICIES, Bank Owned Life Insurance (Details)	Dec. 31, 2021 Employee
Bank Owned Life Insurance [Abstract]
Number of lives of group flexible premium non-participating variable life insurance contract	260

ACCOUNTING POLICIES, Other Intangibles (Details)	12 Months Ended
ACCOUNTING POLICIES, Other Intangibles (Details)	Dec. 31, 2021
Minimum [Member]
Finite Lived Intangible Asset Useful Life [Abstract]
Estimated useful lives	10 years
Maximum [Member]
Finite Lived Intangible Asset Useful Life [Abstract]
Estimated useful lives	15 years

ACCOUNTING POLICIES, Common Stock (Details) shares in Millions	Dec. 31, 2021 shares
Dividend Reinvestment Plan [Member]
Reserved for Future Issuance [Abstract]
Common stock reserved for issuance (in shares)	0.1
Long-Term Incentive Plans [Member]
Reserved for Future Issuance [Abstract]
Common stock reserved for issuance (in shares)	0.8

ACCOUNTING POLICIES, Adoption of New Accounting Standards (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Amortized cost basis of PCD assets, adjusted amount

$ 0

$ 134

^[1]

$ 2,733,678

2,905,045

(35,429)

^[1]

(26,148)

$ (24,888)

^[1]

(47,252)

2,698,249

2,857,793

Liabilities and shareholder's equity [Abstract]

4,704,740

4,204,013

4,306,256

3,814,491

74,582

40,145

398,484

389,522

350,169

338,994

4,704,740

4,204,013

Amortized cost basis of PCD assets, adjusted amount

^[1]

1,242,415

1,203,581

(7,401)

^[1]

(7,922)

(7,090)

(11,519)

Amortized cost basis of PCD assets, adjusted amount

^[1]

1,015,926

^[2]

1,139,659

(6,998)

^[1]

(8,216)

(7,978)

(19,221)

Amortized cost basis of PCD assets, adjusted amount

^[1]

475,337

^[2]

561,805

(1,112)

^[1]

$ (1,283)

$ (895)

Cumulative Effect, Period of Adoption, Adjustment [Member]

(3,749)

Cumulative Effect, Period of Adoption, Adjustment [Member] | Commercial [Member]

(11,574)

Cumulative Effect, Period of Adoption, Adjustment [Member] | Mortgage [Member]

(2,551)

Cumulative Effect, Period of Adoption, Adjustment [Member] | Installment [Member]

(12,000)

$ (3,052)

ASU 2016-13 [Member]

Amortized cost basis of PCD assets, adjusted amount

11,700

130

Remaining noncredit discount, amount

340

ASU 2016-13 [Member] | Unfunded Loan Commitment [Member]

ASU 2016-13 [Member] | As Reported [Member]

1,500

2,733,812

(47,137)

2,686,675

Deferred tax assets

^[3]

3,015

Liabilities and shareholder's equity [Abstract]

4,195,179

Allowance for credit losses on unfunded lending commitments (2)

^[4]

3,274

3,815,960

29,842

379,219

ASU 2016-13 [Member] | As Reported [Member] | Commercial [Member]

4,195,179

ASU 2016-13 [Member] | As Reported [Member] | Mortgage [Member]

1,242,510

ASU 2016-13 [Member] | As Reported [Member] | Installment [Member]

1,015,944

ASU 2016-13 [Member] | Impact, Adjustment [Member]

475,358

134

(11,708)

(11,574)

Deferred tax assets

^[3]

2,740

Liabilities and shareholder's equity [Abstract]

(8,834)

Allowance for credit losses on unfunded lending commitments (2)

^[4]

1,469

1,469

(10,303)

(10,303)

ASU 2016-13 [Member] | Impact, Adjustment [Member] | Commercial [Member]

(8,834)

ASU 2016-13 [Member] | Impact, Adjustment [Member] | Mortgage [Member]

ASU 2016-13 [Member] | Impact, Adjustment [Member] | Installment [Member]

ASU 2016-13 [Member] | Previously Reported [Member]

2,733,678

(35,429)

2,698,249

Deferred tax assets

^[3]

275

Liabilities and shareholder's equity [Abstract]

4,204,013

Allowance for credit losses on unfunded lending commitments (2)

^[4]

1,805

3,814,491

40,145

389,522

ASU 2016-13 [Member] | Previously Reported [Member] | Commercial [Member]

4,204,013

ASU 2016-13 [Member] | Previously Reported [Member] | Mortgage [Member]

1,242,415

ASU 2016-13 [Member] | Previously Reported [Member] | Installment [Member]

1,015,926

ASU 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]

475,337

Liabilities and shareholder's equity [Abstract]

10,300

$ (10,303)

[1]	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.
[2]	Credit scores have been updated within the last twelve months.
[3]	Included in Accrued income and other assets in our Consolidated Statements of Financial Condition.
[4]	Included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition.

RESTRICTIONS ON CASH AND DUE FROM BANKS (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
RESTRICTIONS ON CASH AND DUE FROM BANKS [Abstract]
Average reserve balances maintained	$ 0	$ 0	$ 9,200
Reserve balances held at unrelated financial institutions		$ 0	$ 740

SECURITIES, Available for sale, Gross Unrealized Losses and Fair Values (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) Security Grade	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost	$ 1,404,858	$ 1,052,132
Unrealized Gains	16,594	21,431
Unrealized Losses	8,622	1,404
Fair Value	1,412,830	1,072,159
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	607,923	148,169
Less Than Twelve Months, Unrealized Losses	8,077	989
Twelve Months or More, Fair Value	33,530	28,257
Twelve Months or More, Unrealized Losses	545	415
Total, Fair value	641,453	176,426
Total, Unrealized Losses	8,622	1,404
Available-for-sale, allowance for credit losses	0
Accrued interest receivable	6,000
Credit related charges recognized in earnings	0	0	$ 0
U.S. Agency [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost	34,634	10,456
Unrealized Gains	152	305
Unrealized Losses	112	13
Fair Value	34,674	10,748
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	11,986	1,469
Less Than Twelve Months, Unrealized Losses	109	3
Twelve Months or More, Fair Value	1,286	2,329
Twelve Months or More, Unrealized Losses	3	10
Total, Fair value	13,272	3,798
Total, Unrealized Losses	$ 112	13
Number of securities with market fair value less than amortized cost \| Security	19
U.S. Agency Residential Mortgage-Backed [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost	$ 309,907	340,224
Unrealized Gains	1,952	4,951
Unrealized Losses	3,874	593
Fair Value	307,985	344,582
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	171,398	96,839
Less Than Twelve Months, Unrealized Losses	3,555	592
Twelve Months or More, Fair Value	19,024	83
Twelve Months or More, Unrealized Losses	319	1
Total, Fair value	190,422	96,922
Total, Unrealized Losses	$ 3,874	593
Number of securities with market fair value less than amortized cost \| Security	67
U.S. Agency Commercial Mortgage-Backed [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost	$ 23,066	6,869
Unrealized Gains	84	326
Unrealized Losses	224	0
Fair Value	22,926	7,195
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	19,900
Less Than Twelve Months, Unrealized Losses	224
Twelve Months or More, Fair Value	0
Twelve Months or More, Unrealized Losses	0
Total, Fair value	19,900
Total, Unrealized Losses	$ 224
Number of securities with market fair value less than amortized cost \| Security	23
Private Label Mortgage-Backed [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost	$ 102,480	41,429
Unrealized Gains	807	1,539
Unrealized Losses	672	139
Fair Value	102,615	42,829
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	64,408	11,838
Less Than Twelve Months, Unrealized Losses	640	95
Twelve Months or More, Fair Value	2,180	2,050
Twelve Months or More, Unrealized Losses	32	44
Total, Fair value	66,588	13,888
Total, Unrealized Losses	$ 672	139
Number of securities with market fair value less than amortized cost \| Security	49
Other Asset Backed [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost	$ 215,235	252,596
Unrealized Gains	1,204	1,796
Unrealized Losses	269	211
Fair Value	216,170	254,181
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	86,581	7,142
Less Than Twelve Months, Unrealized Losses	248	25
Twelve Months or More, Fair Value	978	21,197
Twelve Months or More, Unrealized Losses	21	186
Total, Fair value	87,559	28,339
Total, Unrealized Losses	$ 269	211
Number of securities with market fair value less than amortized cost \| Security	51
Obligations of States and Political Subdivisions [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost	$ 568,355	315,780
Unrealized Gains	9,942	8,691
Unrealized Losses	2,221	178
Fair Value	576,076	324,293
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	178,484	28,957
Less Than Twelve Months, Unrealized Losses	2,151	177
Twelve Months or More, Fair Value	7,093	800
Twelve Months or More, Unrealized Losses	70	1
Total, Fair value	185,577	29,757
Total, Unrealized Losses	$ 2,221	178
Number of securities with market fair value less than amortized cost \| Security	281
Corporate [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost	$ 148,707	82,307
Unrealized Gains	2,446	3,807
Unrealized Losses	1,194	97
Fair Value	149,959	86,017
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	75,166	1,924
Less Than Twelve Months, Unrealized Losses	1,150	97
Twelve Months or More, Fair Value	1,050	0
Twelve Months or More, Unrealized Losses	44	0
Total, Fair value	76,216	1,924
Total, Unrealized Losses	$ 1,194	97
Number of securities with market fair value less than amortized cost \| Security	57
Trust Preferred [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost	$ 1,975	1,971
Unrealized Gains	0	0
Unrealized Losses	56	173
Fair Value	1,919	1,798
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months, Fair Value	0	0
Less Than Twelve Months, Unrealized Losses	0	0
Twelve Months or More, Fair Value	1,919	1,798
Twelve Months or More, Unrealized Losses	56	173
Total, Fair value	1,919	1,798
Total, Unrealized Losses	$ 56	173
Number of securities with market fair value less than amortized cost \| Security	2
Number of issues rated as investment grade \| Grade	1
Number of securities not rated \| Security	1
Non-rated securities, amortized cost	$ 1,000
Fair value of non-rated trust preferred securities	960
Foreign Government [Member]
Available-for-sale Securities, Amortized Cost Basis [Abstract]
Amortized cost	499	500
Unrealized Gains	7	16
Unrealized Losses	0	0
Fair Value	$ 506	$ 516

SECURITIES, Amortized Cost and Fair Value Securities Available for Sale Contractual Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract]
Maturing within one year	$ 13,874
Maturing after one year but within five years	133,681
Maturing after five years but within ten years	266,057
Maturing after ten years	340,558
Amortized cost	754,170
U.S. agency residential mortgage-backed	309,907
U.S. agency commercial mortgage-backed	23,066
Private label mortgage-backed	102,480
Other asset backed	215,235
Amortized cost	1,404,858	$ 1,052,132
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
Maturing within one year	13,991
Maturing after one year but within five years	134,901
Maturing after five years but within ten years	266,282
Maturing after ten years	347,960
Total available-for-sale securities fair value	763,134
U.S. agency residential mortgage-backed	307,985
U.S. agency commercial mortgage-backed	22,926
Private label mortgage-backed	102,615
Other asset backed	216,170
Total	$ 1,412,830	$ 1,072,159

SECURITIES, Gains and Losses Realized on Sale of Securities Available for Sale (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Gain and losses realized on sale of securities available for sale [Abstract]
Proceeds	$ 85,371	$ 38,095	$ 68,716
Realized gains	1,475	271	248
Realized losses	64	4	108
Trading securities, realized gains			$ 170
Pledged securities with book value	$ 10,500	$ 14,000
Shareholder equity threshold not exceeded by revenue or taxing authority amount	10.00%	10.00%

LOANS, Loan Portfolios (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

$ 2,905,045

Net of deferred loan costs

^[1]

$ 2,733,678

22,400

14,600

10,032

2,395

$ 50,516

Residential Fixed Rate Mortgage [Member]

35,880

62,560

19,978

9,600

Residential Fixed Rate Mortgage [Member] | Freddie Mac [Member]

450

26,300

Residential Fixed and Adjustable Rate Mortgage [Member]

720

9,900

Real Estate [Member] | Residential First Mortgages [Member]

^[2]

870,169

Real Estate [Member] | Residential Home Equity and Other Junior Mortgages [Member]

^[2]

792,762

^[2]

128,801

Real Estate [Member] | Construction and Land Development [Member]

^[2]

138,128

^[2]

278,992

Real Estate [Member] | Other [Member]

^[2]

232,693

^[2],[3]

726,224

^[2],[3]

669,150

339,785

468,090

555,696

429,011

Agricultural [Member]

5,378

3,844

^[4]

$ 1,139,659

Mortgage [Member] | Residential Adjustable Rate Mortgage [Member]

^[1]

1,015,926

40,600

Mortgage [Member] | Residential Fixed Rate Mortgage [Member]

2,400

Mortgage [Member] | Residential Fixed Rate Mortgage [Member] | Freddie Mac [Member]

$ 70

65,100

Analysis of allowance for loan losses by portfolio segment [Roll Forward]

$ 1,700

[1]	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.
[2]	Includes both residential and non-residential commercial loans secured by real estate.
[3]	Includes loans secured by multi-family residential and non-farm, non-residential property.
[4]	Credit scores have been updated within the last twelve months.

LOANS, Allowance for Credit Losses (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

$ 35,429

^[1]

$ 26,148

$ 24,888

^[1]

47,252

^[1]

(1,928)

Initial allowance on loans purchased with credit deterioration

^[1]

12,463

824

134

4,477

3,069

3,961

(2,434)

(6,251)

(3,525)

$ 35,429

^[1]

26,148

^[1]

$ 47,252

Impact of Adoption [Member]

100.00%

$ 11,574

11,574

Analysis of allowance for loan losses by portfolio segment [Roll Forward]

7,401

^[1]

$ 7,922

7,090

11,519

(1,135)

Initial allowance on loans purchased with credit deterioration

^[1]

1,751

(651)

2,607

1,804

2,165

(4,076)

(682)

$ 7,401

^[1]

7,922

$ 11,519

Commercial [Member] | Impact of Adoption [Member]

41.50%

45.40%

$ 2,551

2,551

Analysis of allowance for loan losses by portfolio segment [Roll Forward]

6,998

^[1]

$ 8,216

7,978

19,221

(266)

Initial allowance on loans purchased with credit deterioration

^[1]

(915)

526

846

513

933

(375)

(816)

(1,221)

$ 6,998

^[1]

8,216

$ 19,221

Mortgage [Member] | Impact of Adoption [Member]

39.20%

37.20%

$ 12,000

12,000

Analysis of allowance for loan losses by portfolio segment [Roll Forward]

1,112

^[1]

$ 1,283

895

3,749

599

Initial allowance on loans purchased with credit deterioration

^[1]

436

1,147

1,024

752

863

(2,059)

(1,359)

(1,622)

$ 1,112

^[1]

1,283

$ 3,749

Installment [Member] | Impact of Adoption [Member]

19.30%

17.40%

$ 3,052

Subjective Allocation [Member]

3,052

Analysis of allowance for loan losses by portfolio segment [Roll Forward]

19,918

^[1]

$ 8,727

8,925

12,763

(1,126)

Initial allowance on loans purchased with credit deterioration

^[1]

11,191

(198)

$ 19,918

^[1]

$ 8,727

$ 12,763

Subjective Allocation [Member] | Impact of Adoption [Member]

0.00%

$ (6,029)

$ (6,029)

[1]	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

LOANS, Allowance for Credit Losses, Probable Incurred Loss Methodology (Details) - USD ($)
$ in Thousands

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

^[1]

$ 5,581

^[1]

29,848

35,429

^[1]

$ 26,148

$ 24,888

^[1]

50,672

^[1]

2,690,880

^[1]

2,742,577

^[1]

8,899

Loans Acquired with Deteriorated Credit Quality [Member]

^[1]

2,733,678

^[1]

^[1]

1,025

^[1]

1,266

^[1]

6,135

7,401

^[1]

7,922

7,090

^[1]

9,431

^[1]

1,236,052

^[1]

1,245,951

^[1]

3,536

Commercial [Member] | Loans Acquired with Deteriorated Credit Quality [Member]

^[1]

1,242,415

^[1]

^[1]

468

^[1]

4,124

^[1]

2,874

6,998

^[1]

8,216

7,978

^[1]

39,245

^[1]

980,449

^[1]

1,020,104

^[1]

4,178

Mortgage [Member] | Loans Acquired with Deteriorated Credit Quality [Member]

^[1]

1,015,926

^[1]

^[1]

410

^[1]

191

^[1]

921

1,112

^[1]

1,283

895

^[1]

1,996

^[1]

474,379

^[1]

476,522

^[1]

1,185

Installment [Member] | Loans Acquired with Deteriorated Credit Quality [Member]

^[1]

475,337

^[1]

Subjective Allocation [Member]

^[1]

147

^[1]

^[1]

19,918

Subjective Allocation [Member] | Loans Acquired with Deteriorated Credit Quality [Member]

19,918

^[1]

$ 8,727

$ 8,925

^[1]

$ 0

[1]	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

LOANS, Receivables Past Due (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Loans Past Due, 90+ days [Member]

$ 6,836

Accrued Interest

200

$ 500

$ 400

Interest Income

$ 0

Commercial and Industrial [Member]

Government guaranteed loans excluded from non-performing loans

1-4 Family Owner Occupied - Non-jumbo [Member]

Government guaranteed loans excluded from non-performing loans

388

386

Commercial [Member] | Commercial and Industrial [Member]

2,538

Commercial [Member] | Commercial Real Estate [Member]

1,373

1,165

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member]

^[1]

2,998

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member]

^[1]

1,290

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member]

^[1]

798

^[1]

513

^[1]

283

^[1]

114

^[1]

1,300

Installment [Member] | Recreational Vehicle Lending [Member]

^[1]

537

^[1]

546

Non-Performing Loans [Member]

^[1]

217

^[2]

1,319

^[2]

3,791

^[2]

5,110

^[2]

^[2]

5,110

7,873

Non-Performing Loans [Member] | Loans Past Due, 90+ days [Member]

^[2]

Non-Performing Loans [Member] | Commercial [Member] | Commercial and Industrial [Member]

^[2]

^[2],[3]

^[2],[3]

^[2],[3]

^[2],[3]

Non-Performing Loans [Member] | Commercial [Member] | Commercial Real Estate [Member]

^[2],[3]

1,387

^[2]

^[2]

^[2]

^[2]

Non-Performing Loans [Member] | Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member]

^[2]

^[2]

607

^[2]

^[2]

607

^[2]

Non-Performing Loans [Member] | Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member]

^[2]

607

623

^[2],[4]

137

^[2],[4]

1,815

^[2],[4]

1,952

^[2],[4]

Non-Performing Loans [Member] | Mortgage [Member] | 1-4 Family Non-owner Occupied [Member]

^[2],[4]

1,952

2,281

^[2]

275

^[2]

592

^[2]

867

^[2]

Non-Performing Loans [Member] | Mortgage [Member] | 1-4 Family - 2nd Lien [Member]

^[2]

867

1,112

^[2]

182

^[2]

681

^[2]

863

^[2]

Non-Performing Loans [Member] | Mortgage [Member] | Resort Lending [Member]

^[2]

863

1,344

^[2]

118

^[2]

119

^[2]

237

^[2]

Non-Performing Loans [Member] | Installment [Member] | Boat Lending [Member]

^[2]

237

607

^[2]

^[2]

210

^[2]

210

^[2]

Non-Performing Loans [Member] | Installment [Member] | Recreational Vehicle Lending [Member]

^[2]

210

^[2]

^[2]

177

^[2]

177

^[2]

Non-Performing Loans [Member] | Installment [Member] | Other [Member]

^[2]

177

^[2]

^[2]

182

^[2]

182

^[2]

^[2]

$ 182

$ 393

[1]	Credit scores have been updated within the last twelve months.
[2]	Non-performing loans exclude purchase credit impaired loans.
[3]	Non-performing commercial and industrial loans exclude $0.047 million and $0.053 million of government guaranteed loans at December 31, 2021 and 2020, respectively.
[4]	Non-performing 1-4 family owner occupied – non jumbo loans exclude $0.388 million and $0.386 million of government guaranteed loans at December 31, 2021 and 2020, respectively.

LOANS, Amortized Cost of Collateral-dependent Loans by Class (Details)
$ in Thousands

Dec. 31, 2021

USD ($)

$ 2,905,045

47,252

^[1]

Collateral Dependent Loans [Member]

6,836

635

Real Estate [Member]

2,795

Other Loan [Member]

516

1,203,581

11,519

Commercial [Member] | Commercial and Industrial [Member]

2,538

593,112

Commercial [Member] | Commercial and Industrial [Member] | Collateral Dependent Loans [Member]

1,373

Commercial [Member] | Commercial and Industrial [Member] | Real Estate [Member]

Commercial [Member] | Commercial and Industrial [Member] | Other Loan [Member]

Commercial [Member] | Commercial Real Estate [Member]

245

610,469

Commercial [Member] | Commercial Real Estate [Member] | Collateral Dependent Loans [Member]

1,165

Commercial [Member] | Commercial Real Estate [Member] | Real Estate [Member]

Commercial [Member] | Commercial Real Estate [Member] | Other Loan [Member]

1,139,659

^[2]

19,221

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member]

2,998

^[2]

541,023

^[2]

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | Collateral Dependent Loans [Member]

1,290

^[2]

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | Real Estate [Member]

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | Other Loan [Member]

607

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member]

266,410

^[2]

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | Collateral Dependent Loans [Member]

798

^[2]

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | Real Estate [Member]

286

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | Other Loan [Member]

940

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member]

194,852

^[2]

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | Collateral Dependent Loans [Member]

513

^[2]

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | Real Estate [Member]

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | Other Loan [Member]

477

88,729

^[2]

Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | Collateral Dependent Loans [Member]

283

^[2]

Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | Real Estate [Member]

Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | Other Loan [Member]

370

48,645

^[2]

Mortgage [Member] | Resort Lending [Member] | Collateral Dependent Loans [Member]

114

^[2]

Mortgage [Member] | Resort Lending [Member] | Real Estate [Member]

Mortgage [Member] | Resort Lending [Member] | Other Loan [Member]

237

561,805

^[2]

3,749

1,300

^[2]

228,140

^[2]

Installment [Member] | Boat Lending [Member] | Collateral Dependent Loans [Member]

537

^[2]

Installment [Member] | Boat Lending [Member] | Real Estate [Member]

Installment [Member] | Boat Lending [Member] | Other Loan [Member]

Installment [Member] | Recreational Vehicle Lending [Member]

234,745

^[2]

Installment [Member] | Recreational Vehicle Lending [Member] | Collateral Dependent Loans [Member]

546

^[2]

Installment [Member] | Recreational Vehicle Lending [Member] | Real Estate [Member]

Installment [Member] | Recreational Vehicle Lending [Member] | Other Loan [Member]

121

98,920

^[2]

Installment [Member] | Other [Member] | Collateral Dependent Loans [Member]

217

^[2]

Installment [Member] | Other [Member] | Real Estate [Member]

Installment [Member] | Other [Member] | Other Loan [Member]

Impaired loans with no allocated ACL [Abstract]

$ 70

[1]	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.
[2]	Credit scores have been updated within the last twelve months.

LOANS, Impaired Financing Receivables (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

TDR

$ 93

Non - TDR

1,367

Impaired loans with an allocated ACL [Abstract]

TDR - allowance based on collateral

9,027

TDR - allowance based on present value cash flow

37,953

Non - TDR - allowance based on collateral

1,873

Total impaired loans

50,313

Amount of ACL allocated [Abstract]

TDR - allowance based on collateral

^[1]

1,058

TDR - allowance based on present value cash flow

^[1]

3,755

Non - TDR - allowance based on collateral

^[1]

768

Total amount of ACL allocated

^[1]

5,581

Recorded Investment, with no related allowance for loan losses recorded

^[1]

1,460

Unpaid Principal Balance, with no related allowance for loan losses recorded

^[1]

1,865

^[1]

Recorded Investment, with an allowance for loan losses recorded

^[1]

49,212

Unpaid Principal Balance, with an allowance for loan losses recorded

^[1]

51,105

^[1]

50,672

^[1]

52,970

^[1]

5,581

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

359

Average Recorded Investment, with no related ACL recorded

^[1]

1,724

$ 789

Interest Income Recognized, with no related ACL recorded

^[1]

^[1]

55,600

55,428

^[1]

4,828

2,978

^[1]

57,324

56,217

Commercial [Member] | Commercial and Industrial [Member]

^[1]

4,851

2,991

Recorded Investment, with no related allowance for loan losses recorded

^[1]

Unpaid Principal Balance, with no related allowance for loan losses recorded

^[1]

Recorded Investment, with an allowance for loan losses recorded

^[1]

2,227

Unpaid Principal Balance, with an allowance for loan losses recorded

^[1]

2,370

^[1]

2,304

^[1]

2,450

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

756

Average Recorded Investment, with no related ACL recorded

^[1]

125

Interest Income Recognized, with no related ACL recorded

^[1]

^[1]

2,230

2,256

^[1]

242

^[1]

2,355

2,307

Commercial [Member] | Commercial Real Estate [Member]

^[1]

251

Recorded Investment, with no related allowance for loan losses recorded

^[1]

Unpaid Principal Balance, with no related allowance for loan losses recorded

^[1]

Recorded Investment, with an allowance for loan losses recorded

^[1]

7,127

Unpaid Principal Balance, with an allowance for loan losses recorded

^[1]

7,096

^[1]

7,127

^[1]

7,096

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

510

Average Recorded Investment, with no related ACL recorded

^[1]

159

278

Interest Income Recognized, with no related ACL recorded

^[1]

^[1]

10,751

5,778

^[1]

1,043

315

^[1]

10,910

6,056

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member]

^[1]

1,043

320

Recorded Investment, with no related allowance for loan losses recorded

^[1]

623

Unpaid Principal Balance, with no related allowance for loan losses recorded

^[1]

629

^[1]

Recorded Investment, with an allowance for loan losses recorded

^[1]

506

Unpaid Principal Balance, with an allowance for loan losses recorded

^[1]

880

^[1]

1,129

^[1]

1,509

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

Average Recorded Investment, with no related ACL recorded

^[1]

408

Interest Income Recognized, with no related ACL recorded

^[1]

^[1]

1,083

995

^[1]

^[1]

1,491

995

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member]

^[1]

Recorded Investment, with no related allowance for loan losses recorded

^[1]

Unpaid Principal Balance, with no related allowance for loan losses recorded

^[1]

Recorded Investment, with an allowance for loan losses recorded

^[1]

21,655

Unpaid Principal Balance, with an allowance for loan losses recorded

^[1]

22,311

^[1]

21,655

^[1]

22,311

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

2,300

Average Recorded Investment, with no related ACL recorded

^[1]

252

201

Interest Income Recognized, with no related ACL recorded

^[1]

^[1]

19,624

15,183

^[1]

2,033

594

^[1]

19,876

15,384

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member]

^[1]

2,037

594

Recorded Investment, with no related allowance for loan losses recorded

^[1]

305

Unpaid Principal Balance, with no related allowance for loan losses recorded

^[1]

473

^[1]

Recorded Investment, with an allowance for loan losses recorded

^[1]

4,335

Unpaid Principal Balance, with an allowance for loan losses recorded

^[1]

4,704

^[1]

4,640

^[1]

5,177

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

495

Average Recorded Investment, with no related ACL recorded

^[1]

308

123

Interest Income Recognized, with no related ACL recorded

^[1]

^[1]

4,664

2,874

^[1]

375

291

^[1]

4,972

2,997

^[1]

385

291

Recorded Investment, with no related allowance for loan losses recorded

^[1]

301

Unpaid Principal Balance, with no related allowance for loan losses recorded

^[1]

304

^[1]

Recorded Investment, with an allowance for loan losses recorded

^[1]

811

Unpaid Principal Balance, with an allowance for loan losses recorded

^[1]

829

^[1]

1,112

^[1]

1,133

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

200

Average Recorded Investment, with no related ACL recorded

^[1]

380

136

Interest Income Recognized, with no related ACL recorded

^[1]

^[1]

3,376

13,383

^[1]

809

^[1]

3,756

13,519

^[1]

816

Recorded Investment, with no related allowance for loan losses recorded

^[1]

154

Unpaid Principal Balance, with no related allowance for loan losses recorded

^[1]

379

^[1]

Recorded Investment, with an allowance for loan losses recorded

^[1]

10,555

Unpaid Principal Balance, with an allowance for loan losses recorded

^[1]

10,764

^[1]

10,709

^[1]

11,143

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

1,079

Average Recorded Investment, with no related ACL recorded

^[1]

Interest Income Recognized, with no related ACL recorded

^[1]

^[1]

11,316

11,697

^[1]

799

669

^[1]

11,408

11,697

^[1]

799

669

Recorded Investment, with no related allowance for loan losses recorded

^[1]

Unpaid Principal Balance, with no related allowance for loan losses recorded

^[1]

Recorded Investment, with an allowance for loan losses recorded

^[1]

Unpaid Principal Balance, with an allowance for loan losses recorded

^[1]

^[1]

^[1]

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

Average Recorded Investment, with no related ACL recorded

^[1]

Interest Income Recognized, with no related ACL recorded

^[1]

^[1]

^[1]

^[1]

Installment [Member] | Recreational Vehicle Lending [Member]

^[1]

Recorded Investment, with no related allowance for loan losses recorded

^[1]

Unpaid Principal Balance, with no related allowance for loan losses recorded

^[1]

Recorded Investment, with an allowance for loan losses recorded

^[1]

Unpaid Principal Balance, with an allowance for loan losses recorded

^[1]

100

^[1]

^[1]

100

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

Average Recorded Investment, with no related ACL recorded

^[1]

Interest Income Recognized, with no related ACL recorded

^[1]

^[1]

^[1]

^[1]

^[1]

Recorded Investment, with no related allowance for loan losses recorded

^[1]

Unpaid Principal Balance, with no related allowance for loan losses recorded

^[1]

Recorded Investment, with an allowance for loan losses recorded

^[1]

1,902

Unpaid Principal Balance, with an allowance for loan losses recorded

^[1]

2,040

^[1]

1,902

^[1]

2,040

Average recorded investment in and interest income earned on impaired loans by class [Abstract]

^[1]

170

Average Recorded Investment, with no related ACL recorded

^[1]

Interest Income Recognized, with no related ACL recorded

^[1]

^[1]

2,416

3,186

^[1]

225

189

^[1]

2,416

3,186

^[1]

$ 225

$ 190

[1]	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

LOANS, Troubled Debt Restructurings (Details)
$ in Thousands

12 Months Ended

Dec. 31, 2021

USD ($)

Payment

Dec. 31, 2020

USD ($)

Contract

Dec. 31, 2019

USD ($)

Contract

Number of consecutive timely payments required | Payment

$ 37,086

$ 47,073

Troubled debt restructuring, specific reserve

$ 3,600

4,800

Additional amounts committed to lend as troubled debt restructurings

$ 70

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[1]

$ 8,822

$ 4,336

Increase (decrease) in allowance for loan losses

$ 0

8,848

^[1]

4,342

^[1]

500

Charge offs due to troubled debt restructurings

Past due period for modified loans

90 days

Number of consecutive payments for mortgage loans missed | Payment

Charge-offs on TDRs that subsequently defaulted

$ 0

Minimum [Member]

Modification of stated interest rate of loans, range of period

9 months

Modifications involving extension of maturity date, period range

1 month

Maximum [Member]

Modification of stated interest rate of loans, range of period

36 months

Modification of stated interest rate of loans, range of period in certain circumstances

480 months

Modifications involving extension of maturity date, period range

60 months

Modifications involving extension of maturity date, period range in certain circumstances

230 months

Performing TDR's [Member]

Non-performing TDR's [Member]

$ 36,070

44,341

Commercial and Industrial [Member]

^[2]

1,016

2,732

Loans classified as troubled debt restructurings [Abstract]

Charge-offs on TDRs that subsequently defaulted

1-4 Family Owner Occupied - Non-jumbo [Member]

Loans classified as troubled debt restructurings [Abstract]

Charge-offs on TDRs that subsequently defaulted

$ 12

Commercial [Member] | Performing TDR's [Member]

4,481

9,104

Commercial [Member] | Non-performing TDR's [Member]

4,481

7,956

Commercial [Member] | Commercial and Industrial [Member]

^[2]

$ 1,148

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[1]

$ 1,207

$ 1,609

Commercial [Member] | Commercial Real Estate [Member]

^[1]

$ 1,207

$ 1,609

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[1]

$ 7,012

$ 1,479

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member]

^[1]

$ 7,012

$ 1,479

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[1]

$ 0

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member]

^[1]

$ 0

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[1]

$ 357

$ 478

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member]

^[1]

$ 374

$ 483

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[1]

$ 111

$ 507

^[1]

$ 116

$ 505

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[1]

$ 44

$ 75

^[1]

$ 46

$ 75

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[1]

$ 0

^[1]

$ 0

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[1]

$ 0

Installment [Member] | Recreational Vehicle Lending [Member]

^[1]

$ 0

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[1]

$ 0

^[1]

$ 0

Loans classified as troubled debt restructurings [Abstract]

^[1]

^[1]

$ 91

$ 188

^[1]

$ 191

Retail [Member]

Retail [Member] | Performing TDR's [Member]

^[3]

32,605

37,969

Retail [Member] | Non-performing TDR's [Member]

^[3]

31,589

36,385

Non-TDR Loan Modifications and Paycheck Protection Program ("PPP") due to COVID-19 [Abstract]

^[2],[3],[4]

$ 1,016

$ 1,584

[1]	There were no TDR modifications during the year ended December 31, 2021. The loan modifications during 2020 in the table above did not qualify for relief from TDR accounting under the CARES Act.
[2]	Included in non-performing loans table above.
[3]	Retail loans include mortgage and installment loan portfolio segments.
[4]	Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.

LOANS, Non-TDR Loan Modifications and PPP Due to COVID-19 (Details)
$ in Thousands

12 Months Ended

Dec. 31, 2021

USD ($)

Loan

Dec. 31, 2020

USD ($)

Loan

Dec. 31, 2019

USD ($)

Interest only period for Commercial loans

3 months

Suspended payments period for Retail loans

3 months

COVID-19 Accommodations and Outstanding Loans [Abstract]

$ 2,905,045

^[1]

$ 2,733,678

0.10%

Interest and fees on loans

^[1]

$ 47,252

116,644

123,159

$ 133,883

Paycheck Protection Program [Member]

COVID-19 Accommodations and Outstanding Loans [Abstract]

$ 26,364

Number of outstanding loans | Loan

$ 169,782

186

1,483

Unaccreted net fees remaining at period end

$ 806

$ 3,216

Interest and fees on loans

Loans funded

135,500

261,100

8,900

5,600

$ 0

COVID-19 Accommodations and Outstanding Loans [Abstract]

$ 1,203,581

^[1]

1,242,415

0.00%

$ 11,519

COVID-19 Accommodations and Outstanding Loans [Abstract]

^[2]

$ 1,139,659

^[1]

1,015,926

0.20%

$ 19,221

COVID-19 Accommodations and Outstanding Loans [Abstract]

^[2]

$ 561,805

^[1]

475,337

0.00%

Mortgage Loans Serviced for Others [Member]

$ 3,749

COVID-19 Accommodations and Outstanding Loans [Abstract]

^[3]

$ 3,323,521

COVID-19 Accomodations [Member]

^[3]

0.20%

COVID-19 Accommodations and Outstanding Loans [Abstract]

Number of loans with Covid 19 Accommodations | Loan

Non-TDR loan modifications, portfolio loans outstanding

$ 2,333

COVID-19 Accomodations [Member] | Commercial [Member]

COVID-19 Accommodations and Outstanding Loans [Abstract]

Number of loans with Covid 19 Accommodations | Loan

Non-TDR loan modifications, portfolio loans outstanding

$ 0

COVID-19 Accomodations [Member] | Mortgage [Member]

COVID-19 Accommodations and Outstanding Loans [Abstract]

Number of loans with Covid 19 Accommodations | Loan

Non-TDR loan modifications, portfolio loans outstanding

$ 2,278

COVID-19 Accomodations [Member] | Installment [Member]

COVID-19 Accommodations and Outstanding Loans [Abstract]

Number of loans with Covid 19 Accommodations | Loan

Non-TDR loan modifications, portfolio loans outstanding

$ 55

COVID-19 Accomodations [Member] | Mortgage Loans Serviced for Others [Member]

COVID-19 Accommodations and Outstanding Loans [Abstract]

Number of loans with Covid 19 Accommodations | Loan

^[3]

Non-TDR loan modifications, portfolio loans outstanding

^[3]

$ 5,163

COVID-19 Subsequent Accommodation [Member]

COVID-19 Accommodations and Outstanding Loans [Abstract]

Number of loans with Covid 19 Accommodations | Loan

^[4]

Non-TDR loan modifications, portfolio loans outstanding

^[4]

$ 2,194

COVID-19 Subsequent Accommodation [Member] | Commercial [Member]

COVID-19 Accommodations and Outstanding Loans [Abstract]

Number of loans with Covid 19 Accommodations | Loan

^[4]

Non-TDR loan modifications, portfolio loans outstanding

^[4]

$ 0

COVID-19 Subsequent Accommodation [Member] | Mortgage [Member]

COVID-19 Accommodations and Outstanding Loans [Abstract]

Number of loans with Covid 19 Accommodations | Loan

^[4]

Non-TDR loan modifications, portfolio loans outstanding

^[4]

$ 2,194

COVID-19 Subsequent Accommodation [Member] | Installment [Member]

COVID-19 Accommodations and Outstanding Loans [Abstract]

Number of loans with Covid 19 Accommodations | Loan

^[4]

Non-TDR loan modifications, portfolio loans outstanding

^[4]

$ 0

Closed and Outstanding - Round 1 Loans [Member] | Paycheck Protection Program [Member]

COVID-19 Accommodations and Outstanding Loans [Abstract]

$ 197

Number of outstanding loans | Loan

$ 169,782

1,483

Closed and Outstanding - Round 2 Loans [Member] | Paycheck Protection Program [Member]

COVID-19 Accommodations and Outstanding Loans [Abstract]

$ 26,167

Number of outstanding loans | Loan

$ 0

180

[1]	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.
[2]	Credit scores have been updated within the last twelve months.
[3]	We have delegated authority from all investors to grant these deferrals on their behalf.
[4]	Subsequent accommodations are extensions of the original accommodations that were given as summarized in the paragraph above.

LOANS, Loan Ratings by Loan Class, Commercial (Details) - USD ($)
$ in Thousands

Dec. 31, 2021

Dec. 31, 2020

Summary of Loan Ratings by Loan Class [Abstract]

$ 2,905,045

6,836

^[1]

$ 2,742,577

^[1]

8,899

Summary of Loan Ratings by Loan Class [Abstract]

247,338

125,661

169,759

131,067

80,608

265,749

183,399

1,203,581

496

234

338

432

184

565

289

2,538

^[1]

1,245,951

Commercial [Member] | Non-Watch 1-6 [Member]

^[1]

3,536

Summary of Loan Ratings by Loan Class [Abstract]

245,247

125,335

165,040

120,655

77,430

256,460

176,130

1,166,297

1,199,208

Commercial [Member] | Watch 7-8 [Member]

3,408

Summary of Loan Ratings by Loan Class [Abstract]

324

3,560

8,972

2,070

7,697

476

23,180

38,743

Commercial [Member] | Substandard Accrual 9 [Member]

105

Summary of Loan Ratings by Loan Class [Abstract]

2,010

1,159

1,440

1,108

1,530

6,793

14,042

6,613

Commercial [Member] | Non Accrual 10-11 [Member]

Summary of Loan Ratings by Loan Class [Abstract]

1,387

Commercial [Member] | Commercial and Industrial [Member]

Summary of Loan Ratings by Loan Class [Abstract]

123,567

69,858

58,675

46,368

38,669

104,127

151,848

593,112

314

153

105

229

240

242

1,373

Commercial [Member] | Commercial and Industrial [Member] | Non-Watch 1-6 [Member]

676,319

Summary of Loan Ratings by Loan Class [Abstract]

121,917

69,856

56,984

44,827

38,307

96,261

144,579

572,731

Commercial [Member] | Commercial and Industrial [Member] | Watch 7-8 [Member]

637,826

Summary of Loan Ratings by Loan Class [Abstract]

532

1,294

362

6,274

476

9,019

Commercial [Member] | Commercial and Industrial [Member] | Substandard Accrual 9 [Member]

32,765

Summary of Loan Ratings by Loan Class [Abstract]

1,569

1,159

247

1,530

6,793

11,300

Commercial [Member] | Commercial and Industrial [Member] | Non Accrual 10-11 [Member]

4,341

Summary of Loan Ratings by Loan Class [Abstract]

Commercial [Member] | Commercial Real Estate [Member]

1,387

Summary of Loan Ratings by Loan Class [Abstract]

123,771

55,803

111,084

84,699

41,939

161,622

31,551

610,469

182

233

203

325

1,165

Commercial [Member] | Commercial Real Estate [Member] | Non-Watch 1-6 [Member]

569,632

Summary of Loan Ratings by Loan Class [Abstract]

123,330

55,479

108,056

75,828

39,123

160,199

31,551

593,566

Commercial [Member] | Commercial Real Estate [Member] | Watch 7-8 [Member]

561,382

Summary of Loan Ratings by Loan Class [Abstract]

324

3,028

7,678

1,708

1,423

14,161

Commercial [Member] | Commercial Real Estate [Member] | Substandard Accrual 9 [Member]

5,978

Summary of Loan Ratings by Loan Class [Abstract]

441

1,193

1,108

2,742

Commercial [Member] | Commercial Real Estate [Member] | Non Accrual 10-11 [Member]

2,272

Summary of Loan Ratings by Loan Class [Abstract]

$ 0

Summary of Credit Scores by Loan Class [Abstract]

$ 0

[1]	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

LOANS, Credit Scores by Loan Class, Mortgage and Installment Segments, Current Period (Details)
$ in Thousands

Dec. 31, 2021

USD ($)

$ 2,905,045

6,836

Summary of Credit Scores by Loan Class [Abstract]

410,933

^[1]

243,414

^[1]

101,997

^[1]

49,073

^[1]

72,058

^[1]

165,669

^[1]

96,515

^[1]

1,139,659

^[1]

945

^[1]

574

^[1]

302

^[1]

166

^[1]

196

^[1]

506

^[1]

309

^[1]

Mortgage [Member] | 800 and Above [Member]

2,998

^[1]

Summary of Credit Scores by Loan Class [Abstract]

53,143

^[1]

25,936

^[1]

15,530

^[1]

6,907

^[1]

13,975

^[1]

17,854

^[1]

14,130

^[1]

Mortgage [Member] | 750 to 799 [Member]

147,475

^[1]

Summary of Credit Scores by Loan Class [Abstract]

215,481

^[1]

138,434

^[1]

51,241

^[1]

18,292

^[1]

27,234

^[1]

49,590

^[1]

45,935

^[1]

Mortgage [Member] | 700 to 749 [Member]

546,207

^[1]

Summary of Credit Scores by Loan Class [Abstract]

104,365

^[1]

54,267

^[1]

22,113

^[1]

11,196

^[1]

15,163

^[1]

44,174

^[1]

24,709

^[1]

Mortgage [Member] | 650 to 699 [Member]

275,987

^[1]

Summary of Credit Scores by Loan Class [Abstract]

33,650

^[1]

17,950

^[1]

9,381

^[1]

7,999

^[1]

9,603

^[1]

26,828

^[1]

9,053

^[1]

Mortgage [Member] | 600 to 649 [Member]

114,464

^[1]

Summary of Credit Scores by Loan Class [Abstract]

4,294

^[1]

3,954

^[1]

1,737

^[1]

2,950

^[1]

2,763

^[1]

14,674

^[1]

1,840

^[1]

Mortgage [Member] | 550 to 599 [Member]

32,212

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

789

^[1]

1,137

^[1]

950

^[1]

1,804

^[1]

7,479

^[1]

375

^[1]

Mortgage [Member] | 500 to 549 [Member]

12,534

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

1,468

^[1]

520

^[1]

382

^[1]

599

^[1]

4,198

^[1]

223

^[1]

Mortgage [Member] | Under 500 [Member]

7,390

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

616

^[1]

338

^[1]

397

^[1]

917

^[1]

872

^[1]

250

^[1]

Mortgage [Member] | Unknown [Member]

3,390

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member]

^[1]

Summary of Credit Scores by Loan Class [Abstract]

255,101

^[1]

159,738

^[1]

58,281

^[1]

20,402

^[1]

33,038

^[1]

12,092

^[1]

2,371

^[1]

541,023

^[1]

557

^[1]

370

^[1]

163

^[1]

^[1]

^[1]

^[1]

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | 800 and Above [Member]

1,290

^[1]

Summary of Credit Scores by Loan Class [Abstract]

31,137

^[1]

17,652

^[1]

8,491

^[1]

2,565

^[1]

7,516

^[1]

527

^[1]

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | 750 to 799 [Member]

67,888

^[1]

Summary of Credit Scores by Loan Class [Abstract]

135,292

^[1]

92,590

^[1]

30,072

^[1]

7,118

^[1]

9,469

^[1]

5,043

^[1]

2,371

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | 700 to 749 [Member]

281,955

^[1]

Summary of Credit Scores by Loan Class [Abstract]

67,255

^[1]

34,665

^[1]

13,765

^[1]

4,421

^[1]

7,748

^[1]

4,856

^[1]

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | 650 to 699 [Member]

132,710

^[1]

Summary of Credit Scores by Loan Class [Abstract]

19,367

^[1]

10,313

^[1]

5,447

^[1]

5,285

^[1]

6,080

^[1]

690

^[1]

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | 600 to 649 [Member]

47,182

^[1]

Summary of Credit Scores by Loan Class [Abstract]

2,050

^[1]

2,638

^[1]

506

^[1]

1,013

^[1]

837

^[1]

976

^[1]

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | 550 to 599 [Member]

8,020

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

469

^[1]

^[1]

^[1]

781

^[1]

^[1]

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | 500 to 549 [Member]

1,250

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

1,411

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | Under 500 [Member]

1,411

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

607

^[1]

^[1]

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member] | Unknown [Member]

607

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member]

^[1]

Summary of Credit Scores by Loan Class [Abstract]

67,441

^[1]

42,689

^[1]

24,306

^[1]

17,251

^[1]

24,039

^[1]

69,614

^[1]

21,070

^[1]

266,410

^[1]

208

^[1]

^[1]

^[1]

^[1]

^[1]

226

^[1]

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | 800 and Above [Member]

798

^[1]

Summary of Credit Scores by Loan Class [Abstract]

6,185

^[1]

5,534

^[1]

3,756

^[1]

2,514

^[1]

3,566

^[1]

4,569

^[1]

4,026

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | 750 to 799 [Member]

30,150

^[1]

Summary of Credit Scores by Loan Class [Abstract]

33,227

^[1]

20,300

^[1]

9,688

^[1]

5,664

^[1]

8,887

^[1]

12,498

^[1]

8,341

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | 700 to 749 [Member]

98,605

^[1]

Summary of Credit Scores by Loan Class [Abstract]

19,317

^[1]

10,572

^[1]

4,813

^[1]

4,035

^[1]

5,008

^[1]

21,806

^[1]

5,637

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | 650 to 699 [Member]

71,188

^[1]

Summary of Credit Scores by Loan Class [Abstract]

6,593

^[1]

4,233

^[1]

3,217

^[1]

2,010

^[1]

3,135

^[1]

12,423

^[1]

2,812

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | 600 to 649 [Member]

34,423

^[1]

Summary of Credit Scores by Loan Class [Abstract]

2,119

^[1]

1,082

^[1]

1,051

^[1]

1,549

^[1]

1,660

^[1]

8,663

^[1]

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | 550 to 599 [Member]

16,213

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

295

^[1]

1,076

^[1]

758

^[1]

1,023

^[1]

5,802

^[1]

147

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | 500 to 549 [Member]

9,101

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

421

^[1]

327

^[1]

510

^[1]

3,169

^[1]

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | Under 500 [Member]

4,502

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

616

^[1]

284

^[1]

394

^[1]

250

^[1]

684

^[1]

^[1]

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member] | Unknown [Member]

2,228

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member]

^[1]

Summary of Credit Scores by Loan Class [Abstract]

82,835

^[1]

34,655

^[1]

16,503

^[1]

7,832

^[1]

10,971

^[1]

31,158

^[1]

10,898

^[1]

194,852

^[1]

171

^[1]

^[1]

^[1]

^[1]

^[1]

107

^[1]

^[1]

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | 800 and Above [Member]

513

^[1]

Summary of Credit Scores by Loan Class [Abstract]

15,406

^[1]

1,786

^[1]

2,857

^[1]

1,459

^[1]

2,627

^[1]

5,058

^[1]

1,639

^[1]

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | 750 to 799 [Member]

30,832

^[1]

Summary of Credit Scores by Loan Class [Abstract]

44,201

^[1]

21,885

^[1]

10,517

^[1]

3,667

^[1]

6,956

^[1]

10,004

^[1]

5,117

^[1]

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | 700 to 749 [Member]

102,347

^[1]

Summary of Credit Scores by Loan Class [Abstract]

16,486

^[1]

7,807

^[1]

2,764

^[1]

1,878

^[1]

966

^[1]

6,095

^[1]

2,756

^[1]

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | 650 to 699 [Member]

38,752

^[1]

Summary of Credit Scores by Loan Class [Abstract]

6,617

^[1]

3,095

^[1]

257

^[1]

299

^[1]

248

^[1]

6,019

^[1]

955

^[1]

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | 600 to 649 [Member]

17,490

^[1]

Summary of Credit Scores by Loan Class [Abstract]

125

^[1]

^[1]

108

^[1]

282

^[1]

174

^[1]

2,051

^[1]

381

^[1]

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | 550 to 599 [Member]

3,178

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

192

^[1]

^[1]

1,121

^[1]

^[1]

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | 500 to 549 [Member]

1,338

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

638

^[1]

^[1]

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | Under 500 [Member]

743

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

172

^[1]

^[1]

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member] | Unknown [Member]

172

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

Summary of Credit Scores by Loan Class [Abstract]

4,005

^[1]

4,912

^[1]

2,657

^[1]

2,502

^[1]

3,880

^[1]

8,597

^[1]

62,176

^[1]

88,729

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

211

^[1]

Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | 800 and Above [Member]

283

^[1]

Summary of Credit Scores by Loan Class [Abstract]

415

^[1]

964

^[1]

426

^[1]

^[1]

266

^[1]

353

^[1]

8,465

^[1]

Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | 750 to 799 [Member]

10,984

^[1]

Summary of Credit Scores by Loan Class [Abstract]

2,161

^[1]

2,413

^[1]

714

^[1]

1,332

^[1]

1,859

^[1]

2,415

^[1]

30,106

^[1]

Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | 700 to 749 [Member]

41,000

^[1]

Summary of Credit Scores by Loan Class [Abstract]

1,307

^[1]

1,049

^[1]

771

^[1]

561

^[1]

1,374

^[1]

2,365

^[1]

16,316

^[1]

Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | 650 to 699 [Member]

23,743

^[1]

Summary of Credit Scores by Loan Class [Abstract]

122

^[1]

309

^[1]

460

^[1]

405

^[1]

140

^[1]

1,639

^[1]

5,286

^[1]

Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | 600 to 649 [Member]

8,361

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

177

^[1]

^[1]

106

^[1]

^[1]

1,143

^[1]

1,370

^[1]

Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | 550 to 599 [Member]

2,960

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

476

^[1]

228

^[1]

Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | 500 to 549 [Member]

765

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

190

^[1]

155

^[1]

Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | Under 500 [Member]

533

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

250

^[1]

Mortgage [Member] | 1-4 Family - 2nd Lien [Member] | Unknown [Member]

383

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

Summary of Credit Scores by Loan Class [Abstract]

1,551

^[1]

1,420

^[1]

250

^[1]

1,086

^[1]

130

^[1]

44,208

^[1]

^[1]

48,645

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

106

^[1]

^[1]

Mortgage [Member] | Resort Lending [Member] | 800 and Above [Member]

114

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

274

^[1]

^[1]

7,347

^[1]

^[1]

Mortgage [Member] | Resort Lending [Member] | 750 to 799 [Member]

7,621

^[1]

Summary of Credit Scores by Loan Class [Abstract]

600

^[1]

1,246

^[1]

250

^[1]

511

^[1]

^[1]

19,630

^[1]

^[1]

Mortgage [Member] | Resort Lending [Member] | 700 to 749 [Member]

22,300

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

174

^[1]

^[1]

301

^[1]

^[1]

9,052

^[1]

^[1]

Mortgage [Member] | Resort Lending [Member] | 650 to 699 [Member]

9,594

^[1]

Summary of Credit Scores by Loan Class [Abstract]

951

^[1]

^[1]

^[1]

^[1]

^[1]

6,057

^[1]

^[1]

Mortgage [Member] | Resort Lending [Member] | 600 to 649 [Member]

7,008

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

1,841

^[1]

^[1]

Mortgage [Member] | Resort Lending [Member] | 550 to 599 [Member]

1,841

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

Mortgage [Member] | Resort Lending [Member] | 500 to 549 [Member]

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

201

^[1]

^[1]

Mortgage [Member] | Resort Lending [Member] | Under 500 [Member]

201

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

Mortgage [Member] | Resort Lending [Member] | Unknown [Member]

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

Summary of Credit Scores by Loan Class [Abstract]

244,401

^[1]

101,169

^[1]

82,136

^[1]

57,880

^[1]

32,122

^[1]

44,097

^[1]

561,805

^[1]

507

^[1]

235

^[1]

220

^[1]

144

^[1]

^[1]

113

^[1]

Installment [Member] | 800 and Above [Member]

1,300

^[1]

Summary of Credit Scores by Loan Class [Abstract]

18,316

^[1]

12,331

^[1]

13,345

^[1]

10,415

^[1]

5,781

^[1]

8,722

^[1]

Installment [Member] | 750 to 799 [Member]

68,910

^[1]

Summary of Credit Scores by Loan Class [Abstract]

128,191

^[1]

56,768

^[1]

44,299

^[1]

30,829

^[1]

17,261

^[1]

20,496

^[1]

Installment [Member] | 700 to 749 [Member]

297,844

^[1]

Summary of Credit Scores by Loan Class [Abstract]

62,673

^[1]

24,650

^[1]

17,733

^[1]

12,134

^[1]

5,672

^[1]

9,490

^[1]

Installment [Member] | 650 to 699 [Member]

132,352

^[1]

Summary of Credit Scores by Loan Class [Abstract]

31,402

^[1]

5,817

^[1]

5,392

^[1]

2,828

^[1]

2,376

^[1]

3,615

^[1]

Installment [Member] | 600 to 649 [Member]

51,430

^[1]

Summary of Credit Scores by Loan Class [Abstract]

2,124

^[1]

1,195

^[1]

772

^[1]

850

^[1]

621

^[1]

1,072

^[1]

Installment [Member] | 550 to 599 [Member]

6,634

^[1]

Summary of Credit Scores by Loan Class [Abstract]

667

^[1]

223

^[1]

381

^[1]

598

^[1]

167

^[1]

417

^[1]

Installment [Member] | 500 to 549 [Member]

2,453

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

123

^[1]

161

^[1]

202

^[1]

^[1]

256

^[1]

Installment [Member] | Under 500 [Member]

853

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

180

^[1]

^[1]

Installment [Member] | Unknown [Member]

354

^[1]

Summary of Credit Scores by Loan Class [Abstract]

975

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

975

^[1]

Summary of Credit Scores by Loan Class [Abstract]

78,582

^[1]

42,706

^[1]

37,931

^[1]

28,812

^[1]

17,508

^[1]

22,601

^[1]

228,140

^[1]

169

^[1]

102

^[1]

106

^[1]

^[1]

^[1]

^[1]

Installment [Member] | Boat Lending [Member] | 800 and Above [Member]

537

^[1]

Summary of Credit Scores by Loan Class [Abstract]

7,513

^[1]

5,786

^[1]

6,015

^[1]

4,906

^[1]

2,968

^[1]

4,433

^[1]

Installment [Member] | Boat Lending [Member] | 750 to 799 [Member]

31,621

^[1]

Summary of Credit Scores by Loan Class [Abstract]

47,434

^[1]

24,968

^[1]

21,052

^[1]

15,681

^[1]

9,797

^[1]

10,971

^[1]

Installment [Member] | Boat Lending [Member] | 700 to 749 [Member]

129,903

^[1]

Summary of Credit Scores by Loan Class [Abstract]

19,180

^[1]

9,724

^[1]

8,263

^[1]

6,467

^[1]

3,109

^[1]

4,953

^[1]

Installment [Member] | Boat Lending [Member] | 650 to 699 [Member]

51,696

^[1]

Summary of Credit Scores by Loan Class [Abstract]

3,845

^[1]

1,679

^[1]

2,301

^[1]

1,223

^[1]

1,166

^[1]

1,378

^[1]

Installment [Member] | Boat Lending [Member] | 600 to 649 [Member]

11,592

^[1]

Summary of Credit Scores by Loan Class [Abstract]

373

^[1]

419

^[1]

209

^[1]

327

^[1]

185

^[1]

604

^[1]

Installment [Member] | Boat Lending [Member] | 550 to 599 [Member]

2,117

^[1]

Summary of Credit Scores by Loan Class [Abstract]

237

^[1]

^[1]

^[1]

113

^[1]

115

^[1]

191

^[1]

Installment [Member] | Boat Lending [Member] | 500 to 549 [Member]

828

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

201

^[1]

Installment [Member] | Boat Lending [Member] | Under 500 [Member]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

168

^[1]

^[1]

Installment [Member] | Boat Lending [Member] | Unknown [Member]

182

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

Installment [Member] | Recreational Vehicle Lending [Member]

Summary of Credit Scores by Loan Class [Abstract]

116,701

^[1]

40,280

^[1]

31,591

^[1]

22,029

^[1]

10,227

^[1]

13,917

^[1]

234,745

^[1]

265

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

Installment [Member] | Recreational Vehicle Lending [Member] | 800 and Above [Member]

546

^[1]

Summary of Credit Scores by Loan Class [Abstract]

8,475

^[1]

5,121

^[1]

5,837

^[1]

4,627

^[1]

2,456

^[1]

3,594

^[1]

Installment [Member] | Recreational Vehicle Lending [Member] | 750 to 799 [Member]

30,110

^[1]

Summary of Credit Scores by Loan Class [Abstract]

66,834

^[1]

22,707

^[1]

17,173

^[1]

11,973

^[1]

5,281

^[1]

6,794

^[1]

Installment [Member] | Recreational Vehicle Lending [Member] | 700 to 749 [Member]

130,762

^[1]

Summary of Credit Scores by Loan Class [Abstract]

32,702

^[1]

9,500

^[1]

6,169

^[1]

3,768

^[1]

1,657

^[1]

2,343

^[1]

Installment [Member] | Recreational Vehicle Lending [Member] | 650 to 699 [Member]

56,139

^[1]

Summary of Credit Scores by Loan Class [Abstract]

7,390

^[1]

2,423

^[1]

1,842

^[1]

948

^[1]

649

^[1]

905

^[1]

Installment [Member] | Recreational Vehicle Lending [Member] | 600 to 649 [Member]

14,157

^[1]

Summary of Credit Scores by Loan Class [Abstract]

990

^[1]

408

^[1]

291

^[1]

333

^[1]

152

^[1]

111

^[1]

Installment [Member] | Recreational Vehicle Lending [Member] | 550 to 599 [Member]

2,285

^[1]

Summary of Credit Scores by Loan Class [Abstract]

271

^[1]

100

^[1]

163

^[1]

318

^[1]

^[1]

^[1]

Installment [Member] | Recreational Vehicle Lending [Member] | 500 to 549 [Member]

930

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

Installment [Member] | Recreational Vehicle Lending [Member] | Under 500 [Member]

105

^[1]

^[1]

^[1]

^[1]

344

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

Installment [Member] | Recreational Vehicle Lending [Member] | Unknown [Member]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

Summary of Credit Scores by Loan Class [Abstract]

49,118

^[1]

18,183

^[1]

12,614

^[1]

7,039

^[1]

4,387

^[1]

7,579

^[1]

98,920

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

Installment [Member] | Other [Member] | 800 and Above [Member]

217

^[1]

Summary of Credit Scores by Loan Class [Abstract]

2,328

^[1]

1,424

^[1]

1,493

^[1]

882

^[1]

357

^[1]

695

^[1]

Installment [Member] | Other [Member] | 750 to 799 [Member]

7,179

^[1]

Summary of Credit Scores by Loan Class [Abstract]

13,923

^[1]

9,093

^[1]

6,074

^[1]

3,175

^[1]

2,183

^[1]

2,731

^[1]

Installment [Member] | Other [Member] | 700 to 749 [Member]

37,179

^[1]

Summary of Credit Scores by Loan Class [Abstract]

10,791

^[1]

5,426

^[1]

3,301

^[1]

1,899

^[1]

906

^[1]

2,194

^[1]

Installment [Member] | Other [Member] | 650 to 699 [Member]

24,517

^[1]

Summary of Credit Scores by Loan Class [Abstract]

20,167

^[1]

1,715

^[1]

1,249

^[1]

657

^[1]

561

^[1]

1,332

^[1]

Installment [Member] | Other [Member] | 600 to 649 [Member]

25,681

^[1]

Summary of Credit Scores by Loan Class [Abstract]

761

^[1]

368

^[1]

272

^[1]

190

^[1]

284

^[1]

357

^[1]

Installment [Member] | Other [Member] | 550 to 599 [Member]

2,232

^[1]

Summary of Credit Scores by Loan Class [Abstract]

159

^[1]

^[1]

127

^[1]

167

^[1]

^[1]

154

^[1]

Installment [Member] | Other [Member] | 500 to 549 [Member]

695

^[1]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

308

^[1]

Installment [Member] | Other [Member] | Under 500 [Member]

Summary of Credit Scores by Loan Class [Abstract]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

154

^[1]

Installment [Member] | Other [Member] | Unknown [Member]

Summary of Credit Scores by Loan Class [Abstract]

Loan ratings/credit scores by loan class [Abstract]

975

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

$ 975

^[1]

[1]	Credit scores have been updated within the last twelve months.

LOANS, Loan Ratings by Loan Class, Mortgage and Installment Segments (Details)
$ in Thousands

Dec. 31, 2020

USD ($)

$ 8,899

^[1]

Loan ratings/credit scores by loan class [Abstract]

148,768

445,611

241,589

115,484

38,341

15,934

11,309

3,068

1,020,104

Mortgage [Member] | 1-4 Family Owner Occupied - Jumbo [Member]

4,178

^[1]

Loan ratings/credit scores by loan class [Abstract]

61,077

223,177

101,086

40,296

11,146

3,396

440,178

Mortgage [Member] | 1-4 Family Owner Occupied - Non-jumbo [Member]

1,301

Loan ratings/credit scores by loan class [Abstract]

40,187

70,642

75,489

44,344

18,519

11,021

5,129

2,242

267,573

Mortgage [Member] | 1-4 Family Non-owner Occupied [Member]

1,641

Loan ratings/credit scores by loan class [Abstract]

25,468

82,124

30,326

13,182

4,303

2,388

1,580

405

159,776

587

Loan ratings/credit scores by loan class [Abstract]

12,490

42,138

22,962

11,269

2,703

1,608

1,012

348

94,530

373

Loan ratings/credit scores by loan class [Abstract]

9,546

27,530

11,726

6,393

1,670

917

192

58,047

276

Loan ratings/credit scores by loan class [Abstract]

70,608

257,091

96,961

40,121

7,118

2,511

1,392

210

510

476,522

1,185

^[1]

Loan ratings/credit scores by loan class [Abstract]

32,231

123,689

38,223

10,189

2,083

661

342

207,513

Installment [Member] | Recreational Vehicle Lending [Member]

572

Loan ratings/credit scores by loan class [Abstract]

29,223

95,890

33,476

8,794

1,305

551

283

169,574

457

Loan ratings/credit scores by loan class [Abstract]

9,154

37,512

25,262

21,138

3,730

1,299

767

510

99,435

Balance at beginning of year, net of valuation allowance

$ 156

[1]	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

LOANS, Loans Serviced for Others (Details) $ in Thousands	12 Months Ended
LOANS, Loans Serviced for Others (Details) $ in Thousands	Dec. 31, 2021 USD ($) qtr PSARate	Dec. 31, 2020 USD ($) PSARate	Dec. 31, 2019 USD ($)
Mortgage loans serviced for others [Abstract]
Mortgage loans serviced	$ 3,323,521	$ 2,984,088
Custodial deposit accounts	$ 39,400	40,500
Maximum number of consecutive quarterly losses recorded for profitability requirement \| qtr	4
Percentage of decline in net worth during the period	30.00%
Maximum percentage of decline in net worth for one consecutive quarter	25.00%
Maximum percentage of decline in net worth for two consecutive quarters	40.00%
Highest level of capital, Amount	$ 2,500
Highest level of capital	0.25%
Analysis of capitalized mortgage loan servicing rights [Abstract]
Balance at beginning of period	$ 16,904	19,171
Balance at beginning of period			$ 21,400
Originated servicing rights capitalized	11,436	13,957	7,303
Change in fair value due to price	3,380	(10,833)	(6,408)
Change in fair value due to pay downs	(5,488)	(5,391)	(3,124)
Balance at end of year	26,232	16,904	19,171
Loans sold and serviced that have had servicing rights capitalized	$ 3,323,521	$ 2,982,833	$ 2,580,705
Average coupon rate	3.46%	3.77%
Average servicing fee	0.256%	0.257%
Average discount rate	10.07%	10.09%
Average PSA Rate \| PSARate	232	348
Fannie Mae [Member]
Mortgage loans serviced for others [Abstract]
Mortgage loans serviced	$ 1,753,255	$ 1,656,060
Freddie Mac [Member]
Mortgage loans serviced for others [Abstract]
Mortgage loans serviced	1,344,675	1,095,877
Ginnie Mae [Member]
Mortgage loans serviced for others [Abstract]
Mortgage loans serviced	170,983	181,615
FHLB [Member]
Mortgage loans serviced for others [Abstract]
Mortgage loans serviced	49,581	39,294
Other [Member]
Mortgage loans serviced for others [Abstract]
Mortgage loans serviced	$ 5,027	$ 11,242

OTHER REAL ESTATE (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Other Real Estate [Roll Forward]

$ 738

^[1]

$ 1,715

^[1]

$ 1,178

Loans transferred to other real estate

253

^[1]

332

^[1]

2,242

Sales of other real estate

(745)

^[1]

(1,161)

^[1]

(1,438)

Additions to valuation allowance charged to expense

(11)

^[1]

(148)

^[1]

(267)

Balance at end of year, net of valuation allowance

^[1]

235

738

1,715

Other repossessed assets

Real Estate Owned Valuation Allowance [Roll Forward]

Balance at beginning of year

144

Additions charged to expense

148

267

Direct write-downs upon sale

(70)

(150)

(319)

Balance at end of year

$ 92

Foreclosed residential real estate

200

700

Mortgage loans in process of foreclosure

600

300

Other real estate and repossessed assets

$ 245

$ 766

[1]	Table excludes other repossessed assets totaling $0.01 million and $0.03 million at December 31, 2021 and 2020, respectively.

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 151,010	$ 146,833
Accumulated depreciation and amortization	(114,606)	(110,706)
Property and equipment, net	36,404	36,127
Depreciation expense	5,400	5,300	$ 5,200
Land and Land Improvements [Member]
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	17,296	17,083
Buildings [Member]
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	58,870	57,208
Equipment [Member]
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 74,844	$ 72,542

GOODWILL AND OTHER INTANGIBLES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Amortized intangible assets - core deposits [Abstract]
Gross Carrying Amount	$ 11,916	$ 11,916
Accumulated Amortization	8,580	7,610
Unamortized intangible assets - goodwill [Abstract]
Gross Carrying Amount	28,300	28,300
Intangible amortization expense	1,000	$ 1,000	$ 1,100
Summary of estimated core deposit intangible amortization [Abstract]
2022	785
2023	547
2024	516
2025	487
2026	460
2027 and thereafter	541
Total	$ 3,336

DEPOSITS (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Summary of interest expense on deposits [Abstract]

Savings and interest-bearing checking

$ 2,101

$ 2,264

$ 5,371

Reciprocal

764

2,158

6,024

Time

1,507

7,073

7,148

Brokered time

1,171

4,882

Aggregate amount of time deposits of $250,000 or more

4,465

12,666

$ 23,425

93,100

50,000

Time Deposits denominations amount

250

Summary of the maturity of time deposits [Abstract]

2022

^[1]

269,067

2023

^[1]

43,692

2024

^[1]

10,067

2025

^[1]

5,834

2026

^[1]

6,794

2027 and thereafter

^[1]

338

Summary of reciprocal deposits [Abstract]

^[1]

335,792

Demand

559,664

515,092

Money market

2,546

3,308

Time

24,416

37,785

Earnings Per Share Reconciliation [Abstract]

$ 586,626

$ 556,185

[1]	Includes time deposits, brokered time deposits and reciprocal time deposits

OTHER BORROWINGS (Details) - USD ($) $ in Thousands	12 Months Ended
OTHER BORROWINGS (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Summary of other borrowings [Abstract]
Advances from the FHLB	$ 30,000	$ 30,000
Other	9	12
Total	30,009	30,012
Federal Home Loan Banks [Abstract]
Federal home loan bank stock	8,600
Unused borrowing capacity with FHLB	798,400
Interest expense on FHLB advances	200	500	$ 700
FHLB advances prepaid	$ 0	0	0
FHLB stock as percentages of outstanding advances	4.50%
Short-term Debt [Abstract]
Interest expense on federal funds purchased	$ 0	10	80
Available for sale and loans, pledged to secure other borrowings	$ 1,900,000
Minimum [Member]
Federal Home Loan Banks [Abstract]
Federal home loan bank, advances, interest rate	132.00%
FHLB stock as percentages of unpaid principal balance	0.10%
Maximum [Member]
Federal Home Loan Banks [Abstract]
Federal home loan bank, advances, interest rate	165.00%
Fixed-Rate Advances [Member]
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract]
Fixed-rate advances - 2027 and thereafter	$ 30,000	$ 30,000
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract]
Fixed-rate advances - 2027 and thereafter, Rate	0.74%	0.74%
Federal Reserve Bank Advances [Member]
Short-term Debt [Abstract]
Borrowings	$ 0	$ 0
Average borrowings	0	$ 1,546	$ 305
Unused borrowing capacity	$ 383,400

SUBORDINATED DEBT AND DEBENTURES, Subordinated Debt (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	May 31, 2020
Subordinated Debt [Abstract]
Maturity date	Mar. 17, 2035
Basis spread on variable rate	2.20%
Subordinated debt	$ 39,357	$ 39,281
Subordinated Debt [Member]
Subordinated Debt [Abstract]
Subordinated notes issued			$ 40,000
Maturity period	10 years
Maturity date	May 31, 2030
Call option period	5 years
Coupon rate			5.95%
Fixed coupon rate percentage, period	5 years
Subordinated debt	$ 39,400	39,300
Unamortized deferred issuance costs	$ 600	$ 700
Subordinated Debt [Member] \| SOFR [Member]
Subordinated Debt [Abstract]
Basis spread on variable rate	5.825%

SUBORDINATED DEBT AND DEBENTURES, Subordinated Debentures (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) qtr	Dec. 31, 2020 USD ($)	Mar. 31, 2018 USD ($)
SUBORDINATED DEBT AND DEBENTURES [Abstract]
Trust preferred securities	$ 38,400	$ 38,300
Summary of information regarding subordinated debentures [Abstract]
Issue Date	Mar. 31, 2005
Subordinated Debentures	$ 39,592	39,524
Summary of subordinated debentures and trust preferred securities [Abstract]
Maturity Date	Mar. 17, 2035
Interest Rate Spread	2.20%
First Permitted Redemption Date	Mar. 17, 2010
Distribution deferral period, maximum quarters \| qtr	20
LIBOR [Member]
Summary of subordinated debentures and trust preferred securities [Abstract]
Term of Variable Rate	3 months
Subordinated Debentures Subject to Mandatory Redemption [Member]
Summary of information regarding subordinated debentures [Abstract]
Subordinated Debentures	$ 39,592	39,524
Discount	(1,132)	(1,200)	$ (1,400)
Trust Preferred Securities Subject to Mandatory Redemption [Member]
Summary of information regarding subordinated debentures [Abstract]
Trust Preferred Securities Issued	38,368	38,300
Discount	(1,132)	(1,200)
Common Stock Subject to Mandatory Redemption [Member]
Summary of information regarding subordinated debentures [Abstract]
Common Stock Issued	1,224	1,224
Discount	$ 0	$ 0

COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) shares	Feb. 25, 2022 USD ($) $ / shares	Dec. 31, 2020 USD ($)
COVID-19 [Abstract]
Loans and leases receivable	$ 395,000
% of Total Loans	13.60%
VISA Class A Stock [Member]
Visa Stock [Abstract]
Current conversion ratio	1.6181
VISA Class A Stock [Member] \| Subsequent Event [Member]
Visa Stock [Abstract]
Closing price (in dollars per share) \| $ / shares		$ 219.27
VISA Class B Stock [Member]
Visa Stock [Abstract]
Number of shares owned (in shares) \| shares	12,566
VISA Class B Stock [Member] \| Subsequent Event [Member]
Visa Stock [Abstract]
Current value of shares owned		$ 4,500
Commercial [Member]
COVID-19 [Abstract]
Loans in forbearance	$ 0
Commercial and Industrial [Member]
COVID-19 [Abstract]
Loans and leases receivable	$ 159,000
% of Total Loans	5.50%
Commercial and Industrial [Member] \| Retail [Member]
COVID-19 [Abstract]
Loans and leases receivable	$ 70,000
% of Total Loans	2.40%
Commercial and Industrial [Member] \| Food Service [Member]
COVID-19 [Abstract]
Loans and leases receivable	$ 49,000
% of Total Loans	1.70%
Commercial and Industrial [Member] \| Hotel [Member]
COVID-19 [Abstract]
Loans and leases receivable	$ 40,000
% of Total Loans	1.40%
Commercial Real Estate [Member]
COVID-19 [Abstract]
Loans and leases receivable	$ 236,000
% of Total Loans	8.10%
Commercial Real Estate [Member] \| Retail [Member]
COVID-19 [Abstract]
Loans and leases receivable	$ 109,000
% of Total Loans	3.80%
Commercial Real Estate [Member] \| Office [Member]
COVID-19 [Abstract]
Loans and leases receivable	$ 72,000
% of Total Loans	2.50%
Commercial Real Estate [Member] \| Multifamily [Member]
COVID-19 [Abstract]
Loans and leases receivable	$ 55,000
% of Total Loans	1.90%
Commitments to Extend Credit [Member]
Off-balance Sheet Risks [Abstract]
Financial instruments risk represented by contract amounts	$ 672,693		$ 644,815
Standby Letters of Credit [Member]
Off-balance Sheet Risks [Abstract]
Financial instruments risk represented by contract amounts	$ 9,208		$ 9,361
Standby Letters of Credit [Member] \| Minimum [Member]
Off-balance Sheet Risks [Abstract]
Variable interest rate	2.50%
Standby Letters of Credit [Member] \| Maximum [Member]
Off-balance Sheet Risks [Abstract]
Variable interest rate	12.00%

SHAREHOLDERS' EQUITY AND NET INCOME PER COMMON SHARE, Shareholders' Equity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jun. 30, 2019
Share Repurchase Plan [Abstract]
Stock repurchased (in shares)	814,910	708,956	1,204,688
Stock repurchased	$ 17,269	$ 14,231	$ 26,284
Common Stock [Member]
Share Repurchase Plan [Abstract]
Share repurchase plan percentage of shares authorized to be repurchased	5.00%	5.00%	5.00%
Number of shares authorized for repurchase (in shares)				300,000
Stock repurchased (in shares)	814,910	708,956	1,204,688
Stock repurchased	$ 17,269	$ 14,231	$ 26,284

SHAREHOLDERS' EQUITY AND NET INCOME PER COMMON SHARE, Earnings Per Share Reconciliation (Details) - USD ($)
$ / shares in Units, $ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Net income

$ 62,895

$ 56,152

$ 46,435

Weighted average shares outstanding (in shares)

^[1]

21,585,000

21,977,000

22,894,000

Stock units for deferred compensation plan for non-employee directors (in shares)

121,000

132,000

Effect of stock options (in shares)

69,000

90,000

115,000

Performance share units (in shares)

32,000

33,000

42,000

Weighted average shares outstanding for calculation of diluted earnings per share (in shares)

21,807,000

22,221,000

23,183,000

Net income per common share [Abstract]

Basic (in dollars per share)

^[1]

$ 2.91

$ 2.56

$ 2.03

Diluted (in dollars per share)

$ 2.88

$ 2.53

$ 2.00

Stock Options [Member]

Antidilutive Securities [Abstract]

Antidilutive shares excluded from computation of diluted loss per share (in shares)

[1]	Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards.

INCOME TAX (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Income tax expense [Abstract]

Current expense

$ 12,506

$ 15,459

$ 10,237

Deferred expense (benefit)

1,912

(2,130)

1,088

Income tax expense

$ 14,418

$ 13,329

$ 11,325

Statutory federal income tax rate

21.00%

Reconciliation of income tax expense [Abstract]

Statutory rate applied to income before income tax

$ 16,236

$ 14,591

$ 12,130

Tax-exempt income

(1,487)

(690)

(375)

Share-based compensation

(184)

(204)

Bank owned life insurance

(119)

(196)

(233)

Unrecognized tax benefit

(11)

(206)

(134)

Non-deductible meals, entertainment and memberships

Other, net

(49)

(23)

Income tax expense

14,418

13,329

11,325

Deferred tax assets [Abstract]

Reserve for unfunded lending commitments

^[1]

9,923

7,363

Property and equipment

1,405

1,047

Lease liabilities

1,386

1,652

941

379

Share-based compensation

734

742

Deferred compensation

390

321

Loss reimbursement on sold loans reserve

242

214

Non accrual loan interest income

194

203

Other than temporary impairment charge on securities available for sale

144

Gross deferred tax assets

276

15,635

12,065

Deferred tax liabilities [Abstract]

Capitalized mortgage loan servicing rights

5,509

3,550

Deferred loan fees

2,011

1,901

Unrealized gain on securities available for sale

1,674

4,206

Lease right of use asset

1,361

1,606

Purchase premiums, net

735

509

Gross deferred tax liabilities

11,290

11,790

Deferred tax assets, net

^[2]

4,345

275

Changes in unrecognized tax benefits [Roll Forward]

Balance at beginning of year

180

438

588

Additions based on tax positions related to the current year

Reductions due to the statute of limitations

(11)

(273)

(170)

Reductions due to settlements

Balance at end of year

180

438

Unrecognized tax benefits of effective tax rate

Penalties and interest expense

Penalties and interest accrued

$ 0

Open tax year

2018

[1]	Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.
[2]	Included in accrued income and other assets on the Consolidated Statements of Financial Position.

SHARE BASED COMPENSATION AND BENEFIT PLANS, Share Based Payment Plans (Details) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share Based Compensation [Abstract]
Number of additional shares approved for grant (in shares)	700
Shares issued on deferral basis credited percentage of current value	90.00%
Total compensation cost not yet recognized	$ 2,100
Total compensation cost not yet recognized, period for recognition	1 year 9 months 18 days
Long-Term Incentive Plan [Member]
Share Based Compensation [Abstract]
Total compensation expense recognized	$ 1,600	$ 1,600	$ 1,600
Tax benefit relating to compensation expense recognized	$ 300	300	$ 300
Restricted Stock [Member] \| Long-Term Incentive Plan [Member]
Share Based Compensation [Abstract]
Number of restricted stock units issued to executive officers (in shares)			10
Vesting period			3 years
Non-Employee Directors [Member]
Share Based Compensation [Abstract]
Number of additional shares approved for grant (in shares)	100
Total compensation expense recognized	$ 400	400	$ 300
Tax benefit relating to compensation expense recognized	$ 80	$ 70	$ 50
Executive Officers [Member] \| Restricted Stock [Member] \| Long-Term Incentive Plan [Member]
Share Based Compensation [Abstract]
Number of restricted stock units issued to executive officers (in shares)	90	60	60
Vesting period	3 years	3 years
Executive Officers [Member] \| Performance Stock Units [Member] \| Long-Term Incentive Plan [Member]
Share Based Compensation [Abstract]
Number of restricted stock units issued to executive officers (in shares)	20	20	20
Vesting period	3 years	3 years
Directors [Member]
Share Based Compensation [Abstract]
Shares issues as retainer fees (in shares)	20	20	10

SHARE BASED COMPENSATION AND BENEFIT PLANS, Outstanding Stock Option Grants and Related Transactions (Details) - Stock Options [Member] $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) $ / shares shares
Number of Shares [Roll Forward]
Outstanding, beginning balance (in shares)	121,189
Granted (in shares)	0
Exercised (in shares)	(40,350)
Forfeited (in shares)	0
Expired (in shares)	0
Outstanding, ending balance (in shares)	80,839
Vested and expected to vest, period end (in shares)	80,839
Exercisable, period end (in shares)	80,839
Average Exercise Price [Roll Forward]
Outstanding, beginning balance (in dollars per share) \| $ / shares	$ 4.81
Exercised (in dollars per share) \| $ / shares	2.90
Outstanding, ending balance (in dollars per share) \| $ / shares	5.76
Vested and expected to vest, period end (in dollars per share) \| $ / shares	5.76
Exercisable, period end (in dollars per share) \| $ / shares	$ 5.76
Weighted-Average Remaining Contractual Term [Abstract]
Outstanding, weighted-average remaining contractual term	1 year 7 months 6 days
Vested and expected to vest, weighted-average remaining contractual term	1 year 7 months 6 days
Exercisable, weighted-average remaining contractual term	1 year 7 months 6 days
Aggregate Intrinsic Value [Abstract]
Outstanding, aggregate intrinsic value \| $	$ 1,464
Vested and expected to vest, aggregate intrinsic value \| $	1,464
Exercisable, aggregate intrinsic value \| $	$ 1,464

SHARE BASED COMPENSATION AND BENEFIT PLANS, Outstanding Non-vested Stock and Related Transactions (Details) - Non-vested Restricted Stock and PSU's [Member]	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Number of Shares [Roll Forward]
Outstanding, beginning balance (in shares) \| shares	207,117
Granted (in shares) \| shares	114,565
Vested (in shares) \| shares	(73,081)
Forfeited (in shares) \| shares	(14,375)
Outstanding, ending balance (in shares) \| shares	234,226
Weighted-Average Grant Date Fair Value [Roll Forward]
Outstanding, beginning balance (in dollars per share) \| $ / shares	$ 22.70
Granted (in dollars per share) \| $ / shares	20.45
Vested (in dollars per share) \| $ / shares	22.82
Forfeited (in dollars per share) \| $ / shares	21.89
Outstanding, ending balance (in dollars per share) \| $ / shares	$ 21.64

SHARE BASED COMPENSATION AND BENEFIT PLANS, Options Exercised During the Periods (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Information regarding options exercised [Abstract]
Employee matching contribution, percentage	50.00%	50.00%	50.00%
Maximum contribution of employees' eligible wages	8.00%	8.00%	8.00%
Maximum matching contribution, percent	6.00%
Employee stock ownership plan (ESOP), contributions	2.00%	2.00%	2.00%
401(k) and employee stock ownership plans amount expensed	$ 3,300	$ 3,200	$ 2,600
Performance-based compensation expense	15,600	15,700	9,500
Health care and life insurance expense	6,100	4,800	5,700
Stock Options [Member]
Information regarding options exercised [Abstract]
Intrinsic value	752	293	897
Cash proceeds received	117	57	706
Tax benefit realized	$ 158	$ 61	$ 188

OTHER NON-INTEREST INCOME (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
OTHER NON-INTEREST INCOME [Abstract]
Investment and insurance commissions	$ 2,603	$ 1,971	$ 1,658
ATM fees	1,133	1,197	1,403
Bank owned life insurance	567	910	1,111
Other	5,089	3,443	5,110
Total	$ 9,392	$ 7,521	$ 9,282

DERIVATIVE FINANCIAL INSTRUMENTS, Type of Hedge Designation and Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives			$ 12,283	$ 16,782
Liability Derivatives			5,961	11,754
Interest-Rate Cap Agreements [Member]
Derivative financial instrument according to type of hedge [Abstract]
Unrealized loss on derivative instrument to be reclassified into earnings	$ (500)	$ (2,000)
Fair Value Hedge Designation [Member]
Derivative financial instrument according to type of hedge [Abstract]
Notional Amount			$ 155,648	$ 49,038
Average Maturity			5 years 10 months 24 days	7 years 3 months 18 days
Fair Value			$ 4,029	$ (761)
No Hedge Designation [Member]
Derivative financial instrument according to type of hedge [Abstract]
Notional Amount			$ 741,743	$ 815,576
Average Maturity			3 years 4 months 24 days	2 years
Fair Value			$ 2,293	$ 5,789
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives			7,870	16,767
Liability Derivatives			5,577	10,978
No Hedge Designation [Member] \| Rate-Lock Mortgage Loan Commitments [Member]
Derivative financial instrument according to type of hedge [Abstract]
Notional Amount			$ 129,846	$ 168,816
Average Maturity			1 month 6 days	1 month 6 days
Fair Value			$ 2,140	$ 7,020
No Hedge Designation [Member] \| Mandatory Commitments to Sell Mortgage Loans [Member]
Derivative financial instrument according to type of hedge [Abstract]
Notional Amount			$ 97,737	$ 186,092
Average Maturity			1 month 6 days	1 month 6 days
Fair Value			$ (68)	$ (941)
No Hedge Designation [Member] \| Interest Rate Swaption Agreement [Member]
Derivative financial instrument according to type of hedge [Abstract]
Notional Amount			$ 10,000
Average Maturity			2 months 12 days
Fair Value			$ 186
No Hedge Designation [Member] \| Interest-Rate Cap Agreements [Member]
Derivative financial instrument according to type of hedge [Abstract]
Notional Amount			$ 90,000	$ 135,000
Average Maturity			1 year 3 months 18 days	1 year 9 months 18 days
Fair Value			$ 35	$ 5
No Hedge Designation [Member] \| Purchased Options [Member]
Derivative financial instrument according to type of hedge [Abstract]
Notional Amount				$ 2,908
Average Maturity				6 months
Fair Value				$ 42
No Hedge Designation [Member] \| Written Options [Member]
Derivative financial instrument according to type of hedge [Abstract]
Notional Amount				$ 2,848
Average Maturity				6 months
Fair Value				$ (42)
Fixed Income Interest Rate [Member] \| Fair Value Hedge Designation [Member] \| Interest Rate Swap [Member]
Derivative financial instrument according to type of hedge [Abstract]
Notional Amount			$ 6,753	$ 7,088
Average Maturity			7 years 4 months 24 days	8 years 4 months 24 days
Fair Value			$ (384)	$ (776)
Fixed Income Interest Rate [Member] \| Fair Value Hedge Designation [Member] \| Interest Rate Swap [Member]
Derivative financial instrument according to type of hedge [Abstract]
Notional Amount			$ 148,895	$ 41,950
Average Maturity			5 years 9 months 18 days	7 years 1 month 6 days
Fair Value			$ 4,413	$ 15
Fixed Income Interest Rate [Member] \| No Hedge Designation [Member] \| Interest Rate Swap [Member]
Derivative financial instrument according to type of hedge [Abstract]
Notional Amount			$ 207,080	$ 147,456
Average Maturity			5 years 8 months 12 days	4 years 6 months
Fair Value			$ (5,179)	$ (9,700)
Fixed Income Interest Rate [Member] \| No Hedge Designation [Member] \| Interest Rate Swap [Member]
Derivative financial instrument according to type of hedge [Abstract]
Notional Amount				$ 25,000
Average Maturity				7 months 6 days
Fair Value				$ (295)
Variable Income Interest Rate [Member] \| No Hedge Designation [Member] \| Interest Rate Swap [Member]
Derivative financial instrument according to type of hedge [Abstract]
Notional Amount			$ 207,080	$ 147,456
Average Maturity			5 years 8 months 12 days	4 years 6 months
Fair Value			$ 5,179	$ 9,700
Other Assets [Member] \| No Hedge Designation [Member] \| Rate-Lock Mortgage Loan Commitments [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives			2,140	7,020
Other Assets [Member] \| No Hedge Designation [Member] \| Mandatory Commitments to Sell Mortgage Loans [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives			0	0
Other Assets [Member] \| No Hedge Designation [Member] \| Interest Rate Swaption Agreement [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives			186	0
Other Assets [Member] \| No Hedge Designation [Member] \| Interest-Rate Cap Agreements [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives			35	5
Other Assets [Member] \| No Hedge Designation [Member] \| Purchased Options [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives			0	42
Other Assets [Member] \| No Hedge Designation [Member] \| Written Options [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives			0	0
Other Assets [Member] \| Fixed Income Interest Rate [Member] \| Designated as Hedging Instrument [Member] \| Interest Rate Swap [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives			4,413	15
Other Assets [Member] \| Fixed Income Interest Rate [Member] \| No Hedge Designation [Member] \| Interest Rate Swap [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives			165	0
Other Assets [Member] \| Fixed Income Interest Rate [Member] \| No Hedge Designation [Member] \| Interest Rate Swap [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives			0	0
Other Assets [Member] \| Variable Income Interest Rate [Member] \| No Hedge Designation [Member] \| Interest Rate Swap [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Asset Derivatives			5,344	9,700
Other Liabilities [Member] \| No Hedge Designation [Member] \| Rate-Lock Mortgage Loan Commitments [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives			0	0
Other Liabilities [Member] \| No Hedge Designation [Member] \| Mandatory Commitments to Sell Mortgage Loans [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives			68	941
Other Liabilities [Member] \| No Hedge Designation [Member] \| Interest Rate Swaption Agreement [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives			0	0
Other Liabilities [Member] \| No Hedge Designation [Member] \| Interest-Rate Cap Agreements [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives			0	0
Other Liabilities [Member] \| No Hedge Designation [Member] \| Purchased Options [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives			0	0
Other Liabilities [Member] \| No Hedge Designation [Member] \| Written Options [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives			0	42
Other Liabilities [Member] \| Fixed Income Interest Rate [Member] \| Designated as Hedging Instrument [Member] \| Interest Rate Swap [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives			384	776
Other Liabilities [Member] \| Fixed Income Interest Rate [Member] \| No Hedge Designation [Member] \| Interest Rate Swap [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives			5,344	9,700
Other Liabilities [Member] \| Fixed Income Interest Rate [Member] \| No Hedge Designation [Member] \| Interest Rate Swap [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives			0	295
Other Liabilities [Member] \| Variable Income Interest Rate [Member] \| No Hedge Designation [Member] \| Interest Rate Swap [Member]
Fair value of derivative instruments, balance sheet location [Abstract]
Liability Derivatives			$ 165	$ 0

DERIVATIVE FINANCIAL INSTRUMENTS, Effect on Statement of Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion)	$ 0	$ (354)	$ (1,603)
Fair Value Hedge Designation [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	4,790	(519)	(242)
Fair Value Hedge Designation [Member] \| Interest Rate Swap [Member] \| Interest and Fees on Loans [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	392	(534)	(242)
Fair Value Hedge Designation [Member] \| Interest Rate Swap [Member] \| Interest on Securities Available for Sale - Tax-exempt [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	4,398	15	0
Cash Flow Hedge Designation [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion)	0	(354)	(1,603)
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion)	0	(2,539)	425
Cash Flow Hedge Designation [Member] \| Interest-Rate Cap Agreements [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion)	0	125	(1,211)
Cash Flow Hedge Designation [Member] \| Interest-Rate Cap Agreements [Member] \| Interest Expense [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion)	0	(1,885)	363
Cash Flow Hedge Designation [Member] \| Fixed Income Interest Rate [Member] \| Interest Rate Swap [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion)	0	(479)	(392)
Cash Flow Hedge Designation [Member] \| Fixed Income Interest Rate [Member] \| Interest Rate Swap [Member] \| Interest Expense [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion)	0	(654)	62
No Hedge Designation [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	(3,684)	4,989	960
No Hedge Designation [Member] \| Rate-Lock Mortgage Loan Commitments [Member] \| Net Gains on Mortgage Loans [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	(4,880)	5,608	725
No Hedge Designation [Member] \| Mandatory Commitments to Sell Mortgage Loans [Member] \| Net Gains on Mortgage Loans [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	873	(791)	233
No Hedge Designation [Member] \| Interest-Rate Cap Agreements [Member] \| Interest Expense [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	30	(57)	0
No Hedge Designation [Member] \| Interest Rate Swaption Agreement [Member] \| Net Gains on Mortgage Loans [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	(2)	0	0
No Hedge Designation [Member] \| Purchased Options [Member] \| Interest Expense [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	(42)	(99)	25
No Hedge Designation [Member] \| Written Options [Member] \| Interest Expense [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	42	97	(23)
No Hedge Designation [Member] \| Fixed Income Interest Rate [Member] \| Interest Rate Swap [Member] \| Interest Income [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	4,521	(6,059)	(4,046)
No Hedge Designation [Member] \| Fixed Income Interest Rate [Member] \| Interest Rate Swap [Member] \| Interest Expense [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	295	231	0
No Hedge Designation [Member] \| Variable Income Interest Rate [Member] \| Interest Rate Swap [Member] \| Interest Income [Member]
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract]
Gain (Loss) Recognized in Income	$ (4,521)	$ 6,059	$ 4,046

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Summary of loans and leases receivable [Roll Forward]
Balance at beginning of year	$ 2,416	$ 13,077
New loans and advances	5,722	417
Repayments	(1,259)	(11,078)
Balance at end of year	6,879	2,416
Loan commitments to directors and executive officers	1,900	1,740
Outstanding loan commitments to directors and executive officers	20	40
Directors and executive officers deposit	$ 3,400	$ 2,000
Minimum [Member]
Related Party Transaction [Abstract]
Related party entity ownership percentage	10.00%

LEASES (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Dec. 31, 2019

Components of operating leases [Abstract]

Operating lease cost

$ 1,672

$ 1,780

$ 2,217

Variable lease cost

142

Short-term lease cost

Supplemental balance sheet information related to operating leases [Abstract]

1,799

1,885

$ 2,378

Lease right of use asset

^[1]

$ 6,481

$ 7,646

Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]

Other Assets

Lease liabilities

^[2]

$ 6,602

$ 7,868

Operating Lease, Liability, Statement of Financial Position [Extensible List]

Other Liabilities

Weighted average remaining lease term (years)

6 years 6 months

7 years 1 month 13 days

Weighted average discount rate

2.30%

2.40%

Maturities of lease liabilities [Abstract]

$ 1,619

1,311

816

809

744

1,795

7,094

Less imputed interest

(492)

Tier 1 capital to average assets [Abstract]

^[2]

$ 6,602

$ 7,868

[1]	Included in Accrued income and other assets in our Consolidated Statements of Financial Condition.
[2]	Included in Accrued expenses and other liabilities in our Consolidated Statements of Financial Condition.

CONCENTRATIONS OF CREDIT RISK (Details) $ in Millions	Dec. 31, 2021 USD ($)
Residential Real Estate [Member]
Concentration of Risk [Abstract]
Concentration of risk loans receivable	$ 999.0
Construction and Land Development Loans [Member]
Concentration of Risk [Abstract]
Concentration of risk loans receivable	279.0
Lessors of Nonresidential Real Estate [Member]
Concentration of Risk [Abstract]
Concentration of risk loans receivable	358.6
Construction [Member]
Concentration of Risk [Abstract]
Concentration of risk loans receivable	126.8
Lessors of Residential Real Estate [Member]
Concentration of Risk [Abstract]
Concentration of risk loans receivable	100.2
Health Care and Social Assistance [Member]
Concentration of Risk [Abstract]
Concentration of risk loans receivable	92.0
Accommodation and Food Services [Member]
Concentration of Risk [Abstract]
Concentration of risk loans receivable	90.1
Manufacturing [Member]
Concentration of Risk [Abstract]
Concentration of risk loans receivable	$ 73.4

REGULATORY MATTERS (Details)
$ in Thousands

12 Months Ended

Dec. 31, 2021

USD ($)

Dec. 31, 2020

USD ($)

Dec. 31, 2019

USD ($)

Dec. 31, 2018

USD ($)

REGULATORY MATTERS [Abstract]

Undivided profits

$ 100,100

Capital conservation buffer

0.0250

Components of regulatory capital [Abstract]

Accumulated other comprehensive loss for regulatory purposes

$ 398,484

$ 389,522

$ 350,169

$ 338,994

Add (deduct) [Abstract]

501

10,024

Period of transition method for regulatory purposes

$ 39,357

39,281

3 years

Consolidated [Member]

Total capital to risk-weighted assets [Abstract]

^[1]

$ 488,495

$ 455,072

Minimum for Adequately Capitalized Institutions, Amount

^[1]

0.1453

0.1595

^[1]

$ 268,991

$ 228,214

Minimum for Adequately Capitalized Institutions, Ratio

^[1]

0.0800

Tier 1 capital to risk-weighted assets [Abstract]

^[1]

$ 406,645

$ 379,395

Minimum for Adequately Capitalized Institutions, Amount

^[1]

0.1209

0.1330

^[1]

$ 201,743

$ 171,161

Minimum for Adequately Capitalized Institutions, Ratio

^[1]

0.0600

Common equity tier 1 capital to risk-weighted assets [Abstract]

^[1]

$ 368,277

$ 341,095

Minimum for Adequately Capitalized Institutions, Amount

^[1]

0.1095

0.1196

^[1]

$ 151,307

$ 128,370

Minimum for Adequately Capitalized Institutions, Ratio

^[1]

0.0450

Tier 1 capital to average assets [Abstract]

^[1]

$ 406,645

$ 379,395

Minimum for Adequately Capitalized Institutions, Amount

^[1]

0.0879

0.0915

^[1]

$ 185,034

$ 165,825

Minimum for Adequately Capitalized Institutions, Ratio

^[1]

0.0400

Components of regulatory capital [Abstract]

Accumulated other comprehensive loss for regulatory purposes

$ 398,484

$ 389,522

Add (deduct) [Abstract]

(6,298)

(15,821)

Goodwill and other intangibles

(31,636)

(32,606)

CECL

^[2]

7,727

Common equity tier 1 capital

^[1]

368,277

341,095

Qualifying trust preferred securities

38,368

38,300

^[1]

406,645

379,395

Allowance for credit losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets

40,000

^[3]

41,850

35,677

Independent Bank [Member]

^[1]

488,495

455,072

Total capital to risk-weighted assets [Abstract]

^[1]

$ 438,352

$ 401,005

Minimum for Adequately Capitalized Institutions, Amount

^[1]

0.1305

0.1406

^[1]

$ 268,808

$ 228,111

Minimum for Adequately Capitalized Institutions, Ratio

^[1]

0.0800

^[1]

$ 336,011

$ 285,139

Tier 1 capital to risk-weighted assets [Abstract]

^[1]

0.1000

^[1]

$ 396,351

$ 365,343

Minimum for Adequately Capitalized Institutions, Amount

^[1]

0.1180

0.1281

^[1]

$ 201,606

$ 171,083

Minimum for Adequately Capitalized Institutions, Ratio

^[1]

0.0600

^[1]

$ 268,808

$ 228,111

Common equity tier 1 capital to risk-weighted assets [Abstract]

^[1]

0.0800

^[1]

$ 396,351

$ 365,343

Minimum for Adequately Capitalized Institutions, Amount

^[1]

0.1180

0.1281

^[1]

$ 151,205

$ 128,312

Minimum for Adequately Capitalized Institutions, Ratio

^[1]

0.0450

^[1]

$ 218,407

$ 185,340

Tier 1 capital to average assets [Abstract]

^[1]

0.0650

^[1]

$ 396,351

$ 365,343

Minimum for Adequately Capitalized Institutions, Amount

^[1]

0.0857

0.0881

^[1]

$ 185,077

$ 165,828

Minimum for Adequately Capitalized Institutions, Ratio

^[1]

0.0400

^[1]

$ 231,347

$ 207,285

Components of regulatory capital [Abstract]

^[1]

0.0500

Accumulated other comprehensive loss for regulatory purposes

$ 426,558

$ 413,770

Add (deduct) [Abstract]

(6,298)

(15,821)

Goodwill and other intangibles

(31,636)

(32,606)

CECL

^[2]

7,727

Common equity tier 1 capital

^[1]

396,351

365,343

Qualifying trust preferred securities

^[1]

396,351

365,343

Allowance for credit losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets

^[3]

42,001

35,662

^[1]

$ 438,352

$ 401,005

[1]	These ratios do not reflect a capital conservation buffer of 2.50% at December 31, 2021 and 2020.
[2]	We elected the three year CECL transition method for regulatory purposes.
[3]	Beginning January 1, 2021, calculation of allowances are based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

FAIR VALUE DISCLOSURES, Changes in Fair Value for Financial Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Changes in fair value for financial assets [Abstract]
Equity securities at fair value			$ 167
Loans held for sale	$ (2,805)	$ 1,962	637
Capitalized mortgage loan servicing rights, net gains (losses)	(2,108)	(16,224)	(9,532)
Impairment charges recognized [Abstract]
Collateral dependent loans, carrying amount	1,400	9,100
Collateral dependent loans, valuation allowance	600	1,800
Additional provision for credit losses on collateral dependent loans	300	700	1,300
Other real estate, carrying amount	0	100
Other real estate, valuation allowance	31	90	92	$ 144
Other real estate, additional charge	0	30	30
Securities [Member]
Changes in fair value for financial assets [Abstract]
Equity securities at fair value			167
Mortgage Loans [Member]
Changes in fair value for financial assets [Abstract]
Loans held for sale	(2,805)	1,962	637
Mortgage Loan Servicing, Net [Member]
Changes in fair value for financial assets [Abstract]
Capitalized mortgage loan servicing rights, net gains (losses)	$ (2,108)	$ (16,224)	$ (9,532)

FAIR VALUE DISCLOSURES, Reconciliation for all Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - Capitalized Mortgage Loan Servicing Rights [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Roll Forward]
Beginning balance	$ 16,904	$ 19,171	$ 21,400
Total losses realized and unrealized [Abstract]
Included in results of operations	(2,108)	(16,224)	(9,532)
Included in other comprehensive income (loss)	0	0	0
Purchases, issuances, settlements, maturities and calls	11,436	13,957	7,303
Transfers in and/or out of Level 3	0	0	0
Ending balance	26,232	16,904	19,171
Amount of total losses for the period included in earnings attributable to the change in unrealized losses relating to assets and liabilities still held at December 31	$ (2,108)	$ (16,224)	$ (9,532)

FAIR VALUE DISCLOSURES, Difference Between Aggregate Fair value and Aggregate Remaining Contractual Principal (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Loans held for sale [Abstract]
Aggregate Fair Value	$ 55,470	$ 92,434	$ 69,800
Difference	1,051	3,856	1,894
Contractual Principal	$ 54,419	$ 88,578	$ 67,906

FAIR VALUES OF FINANCIAL INSTRUMENTS (Details) - USD ($)
$ in Thousands

Dec. 31, 2021

Dec. 31, 2020

Federal Home Loan Bank and Federal Reserve Bank Stock

$ 1,412,830

$ 1,072,159

18,427

^[1]

335,792

30,009

30,012

39,357

39,281

Reciprocal deposits included in deposits with no stated maturity

39,592

39,524

562,210

518,400

Reciprocal deposits included in deposits with stated maturity

24,416

37,785

Recorded Book Balance [Member]

51,069

56,006

58,404

62,699

Federal Home Loan Bank and Federal Reserve Bank Stock

1,412,830

1,072,159

18,427

2,948,074

2,790,683

12,865

12,315

12,283

16,782

^[2]

3,781,298

3,198,338

^[2]

335,792

439,017

30,009

30,012

39,357

39,281

39,592

39,524

497

601

5,961

11,754

Fair Value [Member]

51,069

56,006

58,404

62,699

1,412,830

1,072,159

2,931,079

2,794,058

12,865

12,315

12,283

16,782

3,781,298

3,198,338

336,006

441,457

30,155

30,844

44,999

41,417

33,866

30,265

497

601

Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]

5,961

11,754

51,069

56,006

58,404

62,699

35,233

3,781,298

3,198,338

Significant Other Observable Inputs (Level 2) [Member]

1,412,830

1,072,159

55,470

92,434

6,028

3,414

12,283

16,782

336,006

441,457

30,155

30,844

44,999

41,417

33,866

30,265

430

542

Significant Unobservable Inputs (Level 3) [Member]

5,961

11,754

2,840,376

2,701,624

6,836

8,898

$ 0

[1]	Includes time deposits, brokered time deposits and reciprocal time deposits
[2]	Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $562.210 million and $518.400 million at December 31, 2021 and 2020, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $24.416 million and $37.785 million at December 31, 2021 and 2020, respectively.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), Summary of Changes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Changes in AOCIL [Roll Forward]
Balance at beginning of period	$ 389,522	$ 350,169	$ 338,994
Other comprehensive income (loss) before reclassifications	(8,408)	12,015	6,769
Amounts reclassified from AOCIL	(1,115)	1,795	(447)
Other comprehensive income (loss)	(9,523)	13,810	6,322
Balances at end of period	398,484	389,522	350,169
Accumulated Other Comprehensive Income (Loss) [Member]
Changes in AOCIL [Roll Forward]
Balance at beginning of period	10,024	(3,786)	(10,108)
Other comprehensive income (loss)	(9,523)	13,810	6,322
Balances at end of period	501	10,024	(3,786)
Unrealized Gains (Losses) on Securities Available for Sale [Member]
Changes in AOCIL [Roll Forward]
Balance at beginning of period	15,822	3,739	(4,185)
Other comprehensive income (loss) before reclassifications	(8,408)	12,294	8,035
Amounts reclassified from AOCIL	(1,115)	(211)	(111)
Other comprehensive income (loss)	(9,523)	12,083	7,924
Balances at end of period	6,299	15,822	3,739
Disproportionate Tax Effects from Securities Available for Sale [Member]
Changes in AOCIL [Roll Forward]
Balance at beginning of period	(5,798)	(5,798)	(5,798)
Other comprehensive income (loss) before reclassifications	0	0	0
Amounts reclassified from AOCIL	0	0	0
Other comprehensive income (loss)	0	0	0
Balances at end of period	(5,798)	(5,798)	(5,798)
Unrealized Losses on Cash Flow Hedges [Member]
Changes in AOCIL [Roll Forward]
Balance at beginning of period	0	(1,727)	(125)
Other comprehensive income (loss) before reclassifications	0	(279)	(1,266)
Amounts reclassified from AOCIL	0	2,006	(336)
Other comprehensive income (loss)	0	1,727	(1,602)
Balances at end of period	$ 0	$ 0	$ (1,727)

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 55
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=122038336&loc=d3e74512-122707

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571