1st Source (SRCE) 10-K16 Feb 232022 FY Annual reportFinancial data

Company Profile

Cover Page

Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2022	Feb. 10, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Document Transition Report	false
Entity File Number	0-6233
Entity Registrant Name	1st Source Corporation
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	35-1068133
Entity Address, Address Line One	100 North Michigan Street
Entity Address, City or Town	South Bend,
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	46601
City Area Code	574
Local Phone Number	235-2000
Title of 12(b) Security	Common Stock — without par value
Trading Symbol	SRCE
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 870,592,534
Entity Common Stock, Shares Outstanding		24,700,618
Documents Incorporated by Reference	Portions of the 2023 Proxy Statement for the 2023 annual meeting of shareholders to be held April 20, 2023, are incorporated by reference into Part III.
Entity Central Index Key	0000034782
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
ICFR Auditor Attestation Flag	true

Audit Information

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	FORVIS, LLP
Auditor Location	Fort Wayne, Indiana
Auditor Firm ID	686

CONSOLIDATED STATEMENTS OF FINA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Cash and due from banks	$ 84,703	$ 54,420
Federal funds sold and interest bearing deposits with other banks	38,094	470,767
Investment securities available-for-sale	1,775,128	1,863,041
Other investments	25,293	27,189
Mortgages held for sale	3,914	13,284
Loans and leases, net of unearned discount:
Total loans and leases	6,011,162	5,346,214
Allowance for loan and lease losses	(139,268)	(127,492)
Net loans and leases	5,871,894	5,218,722
Equipment owned under operating leases, net	31,700	48,433
Net premises and equipment	44,773	47,038
Goodwill and intangible assets	83,907	83,926
Accrued income and other assets	380,010	269,469
Total assets	8,339,416	8,096,289
Deposits:
Noninterest-bearing demand	1,998,151	2,052,981
Interest-bearing demand	2,591,464	2,455,580
Savings	1,198,191	1,286,367
Time	1,140,459	884,137
Total interest-bearing deposits	4,930,114	4,626,084
Total deposits	6,928,265	6,679,065
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase	141,432	194,727
Other short-term borrowings	74,097	5,300
Total short-term borrowings	215,529	200,027
Long-term debt and mandatorily redeemable securities	46,555	71,251
Subordinated notes	58,764	58,764
Accrued expenses and other liabilities	166,537	117,718
Total liabilities	7,415,650	7,126,825
SHAREHOLDERS’ EQUITY
Preferred stock; no par value Authorized 10,000,000 shares; none issued or outstanding	0	0
Common stock; no par value Authorized 40,000,000 shares; issued 28,205,674 shares at December 31, 2022 and 2021	436,538	436,538
Retained earnings	694,862	603,787
Cost of common stock in treasury (3,543,388 shares at December 31, 2022 and 3,466,162 shares at December 31, 2021)	(119,642)	(114,209)
Accumulated other comprehensive loss	(147,690)	(9,861)
Total shareholders’ equity	864,068	916,255
Noncontrolling interests	59,698	53,209
Total equity	923,766	969,464
Total liabilities and equity	$ 8,339,416	$ 8,096,289
Preferred Stock, Par or Stated Value Per Share	$ 0	$ 0
Preferred stock, Authorized shares	10,000,000	10,000,000
Preferred stock, issued shares	0	0
Common Stock, Par or Stated Value Per Share	$ 0	$ 0
Common stock, Authorized shares	40,000,000	40,000,000
Common stock, issued shares	28,205,674	28,205,674
Cost of common stock in treasury, shares	3,543,388	3,466,162
Commercial and agricultural
Loans and leases, net of unearned discount:
Total loans and leases	$ 812,031	$ 918,712
Allowance for loan and lease losses	(14,635)	(15,409)
Solar
Loans and leases, net of unearned discount:
Total loans and leases	381,163	348,302
Allowance for loan and lease losses	(7,217)	(6,585)
Auto and light truck
Loans and leases, net of unearned discount:
Total loans and leases	808,117	603,775
Allowance for loan and lease losses	(18,634)	(19,624)
Medium and heavy duty truck
Loans and leases, net of unearned discount:
Total loans and leases	313,862	259,740
Allowance for loan and lease losses	(7,566)	(6,015)
Aircraft
Loans and leases, net of unearned discount:
Total loans and leases	1,077,722	898,401
Allowance for loan and lease losses	(41,093)	(33,628)
Construction equipment
Loans and leases, net of unearned discount:
Total loans and leases	938,503	754,273
Allowance for loan and lease losses	(24,039)	(19,673)
Commercial real estate
Loans and leases, net of unearned discount:
Total loans and leases	943,745	929,341
Allowance for loan and lease losses	(17,431)	(19,691)
Residential real estate and home equity
Loans and leases, net of unearned discount:
Total loans and leases	584,737	500,590
Allowance for loan and lease losses	(6,478)	(5,084)
Consumer
Loans and leases, net of unearned discount:
Total loans and leases	151,282	133,080
Allowance for loan and lease losses	$ (2,175)	$ (1,783)

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interest income:
Loans and leases	$ 263,894	$ 235,031	$ 242,772
Investment securities, taxable	26,294	17,767	18,080
Investment securities, tax-exempt	1,049	601	895
Other	2,579	1,373	1,284
Total interest income	293,816	254,772	263,031
Interest expense:
Deposits	25,231	12,276	30,459
Short-term borrowings	1,497	115	517
Subordinated notes	3,550	3,267	3,367
Long-term debt and mandatorily redeemable securities	69	2,476	2,868
Total interest expense	30,347	18,134	37,211
Net interest income	263,469	236,638	225,820
Provision (recovery of provision) for credit losses	13,245	(4,303)	36,001
Net interest income after provision for credit losses	250,224	240,941	189,819
Noninterest income:
Mortgage banking	4,122	11,822	15,674
Insurance commissions	6,703	7,247	7,025
Income related to lease payments	12,274	16,647	23,380
(Losses) gains on investment securities available-for-sale	(184)	(680)	279
Other	15,042	12,560	11,949
Total noninterest income	91,262	100,092	103,889
Noninterest expense:
Salaries and employee benefits	105,110	105,808	101,556
Net occupancy	10,728	10,524	10,276
Furniture and equipment	5,448	5,977	6,541
Data processing	22,375	19,877	19,147
Depreciation - leased equipment	10,023	13,694	20,203
Professional fees	7,280	8,676	6,317
FDIC and other insurance	3,625	2,677	2,606
Business development and marketing	5,823	8,013	4,157
Other	14,287	10,902	16,564
Total noninterest expense	184,699	186,148	187,367
Income before income taxes	156,787	154,885	106,341
Income tax expense	36,255	36,328	24,880
Net income	120,532	118,557	81,461
Net (income) loss attributable to noncontrolling interests	(23)	(23)	(24)
Net income available to common shareholders	$ 120,509	$ 118,534	$ 81,437
Basic net income per common share, in dollars per share	$ 4.84	$ 4.70	$ 3.17
Diluted net income per common share, in dollars per share	$ 4.84	$ 4.70	$ 3.17
Trust and wealth advisory
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	$ 23,107	$ 23,782	$ 21,114
Service charges on deposit accounts
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	12,146	10,589	9,485
Debit card
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	$ 18,052	$ 18,125	$ 14,983

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 120,532	$ 118,557	$ 81,461
Other comprehensive (loss) income:
Unrealized (depreciation) appreciation of investment securities available-for-sale	(181,237)	(37,867)	17,666
Reclassification adjustment for realized losses (gains) included in net income	184	680	(279)
Income tax effect	43,224	8,955	(4,188)
Other comprehensive (loss) income, net of tax	(137,829)	(28,232)	13,199
Comprehensive (loss) income	(17,297)	90,325	94,660
Comprehensive (income) loss attributable to noncontrolling interests	(23)	(23)	(24)
Comprehensive (loss) income available to common shareholders	$ (17,320)	$ 90,302	$ 94,636

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Adjustment	Adjusted Balance	Common Stock	Common Stock Adjusted Balance	Retained Earnings	Retained Earnings Adjustment	Retained Earnings Adjusted Balance	Cost of Common Stock in Treasury	Cost of Common Stock in Treasury Adjusted Balance	Accumulated Other Comprehensive Income (Loss), Net	Accumulated Other Comprehensive Income (Loss), Net Adjustment	Accumulated Other Comprehensive Income (Loss), Net Adjusted Balance	Total Shareholders' Equity	Total Shareholders' Equity Adjustment	Total Shareholders' Equity Adjusted Balance	Noncontrolling Interests	Noncontrolling Interests Adjusted Balance
Balance at Dec. 31, 2019	$ 848,636	$ (2,552)	$ 846,084	$ 436,538	$ 436,538	$ 463,269	$ (2,552)	$ 460,717	$ (76,702)	$ (76,702)	$ 5,172	$ 0	$ 5,172	$ 828,277	$ (2,552)	$ 825,725	$ 20,359	$ 20,359
Increase (Decrease) in Stockholders' Equity
Net income	81,461					81,437								81,437			24
Other comprehensive income (loss)	13,199										13,199			13,199
Issuance of 72,593, 63,527, and 46,089 common shares under stock based compensation awards for 2022, 2021 and 2020, respectively	1,839					962			877					1,839
Cost of 149,819, 713,132, and 166,446 shares of common stock acquired for treasury for 2022, 2021, and 2020, respectively	(6,415)								(6,415)					(6,415)
Common stock dividend ($1.26, $1.21, and $1.13 per share for 2022, 2021 and 2020, respectively)	(28,940)					(28,940)								(28,940)
Contributions from noncontrolling interests	24,098													0			24,098
Distributions to noncontrolling interests	(656)													0			(656)
Balance at Dec. 31, 2020	$ 930,670			436,538		514,176			(82,240)		18,371			886,845			43,825
Increase (Decrease) in Stockholders' Equity
Issuance of common shares per stock based compensation awards, shares	46,089
Common stock acquired for treasury, shares	166,446
Common stock dividend (in dollars per share)	$ 1.13
Net income	$ 118,557					118,534								118,534			23
Other comprehensive income (loss)	(28,232)										(28,232)			(28,232)
Issuance of 72,593, 63,527, and 46,089 common shares under stock based compensation awards for 2022, 2021 and 2020, respectively	2,714					1,547			1,167					2,714
Cost of 149,819, 713,132, and 166,446 shares of common stock acquired for treasury for 2022, 2021, and 2020, respectively	(33,136)								(33,136)					(33,136)
Common stock dividend ($1.26, $1.21, and $1.13 per share for 2022, 2021 and 2020, respectively)	(30,470)					(30,470)								(30,470)
Contributions from noncontrolling interests	10,358													0			10,358
Distributions to noncontrolling interests	(997)													0			(997)
Balance at Dec. 31, 2021	$ 969,464			436,538		603,787			(114,209)		(9,861)			916,255			53,209
Increase (Decrease) in Stockholders' Equity
Issuance of common shares per stock based compensation awards, shares	63,527
Common stock acquired for treasury, shares	713,132
Common stock dividend (in dollars per share)	$ 1.21
Net income	$ 120,532					120,509								120,509			23
Other comprehensive income (loss)	(137,829)										(137,829)			(137,829)
Issuance of 72,593, 63,527, and 46,089 common shares under stock based compensation awards for 2022, 2021 and 2020, respectively	3,165					1,762			1,403					3,165
Cost of 149,819, 713,132, and 166,446 shares of common stock acquired for treasury for 2022, 2021, and 2020, respectively	(6,836)								(6,836)					(6,836)
Common stock dividend ($1.26, $1.21, and $1.13 per share for 2022, 2021 and 2020, respectively)	(31,196)					(31,196)								(31,196)
Contributions from noncontrolling interests	7,700													0			7,700
Distributions to noncontrolling interests	(1,234)													0			(1,234)
Balance at Dec. 31, 2022	$ 923,766			$ 436,538		$ 694,862			$ (119,642)		$ (147,690)			$ 864,068			$ 59,698
Increase (Decrease) in Stockholders' Equity
Issuance of common shares per stock based compensation awards, shares	72,593
Common stock acquired for treasury, shares	149,819
Common stock dividend (in dollars per share)	$ 1.26

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Cash Flows [Abstract]
Net income	$ 120,532	$ 118,557	$ 81,461
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (recovery of provision) for credit losses	13,245	(4,303)	36,001
Depreciation of premises and equipment	4,596	5,093	5,673
Depreciation - leased equipment	10,023	13,694	20,203
Stock-based compensation	3,587	4,214	3,293
Amortization of investment securities premiums and accretion of discounts, net	3,951	6,684	6,057
Amortization of mortgage servicing rights	1,287	2,117	2,361
Mortgage servicing rights (recoveries) impairments	0	(812)	812
Amortization of right of use assets	3,181	3,095	2,842
Deferred income taxes	(9,461)	15,396	(24,160)
Losses (gains) on investment securities available-for-sale	184	680	(279)
Originations of loans held for sale, net of principal collected	(86,185)	(261,558)	(330,991)
Proceeds from the sales of loans held for sale	97,166	268,226	351,039
Net gains on sale of loans held for sale	(1,611)	(7,067)	(12,656)
Net gains on sale of other real estate and repossessions	(410)	(672)	(138)
Change in interest receivable	(6,987)	2,482	(1,117)
Change in interest payable	4,115	(2,111)	(9,923)
Change in other assets	413	17,757	12,782
Change in other liabilities	21,910	(14,990)	10,293
Other	(4,006)	279	940
Net change in operating activities	175,530	166,761	154,493
Investing activities:
Proceeds from sales of investment securities available-for-sale	23,795	99,208	8,403
Proceeds from maturities and paydowns of investment securities available-for-sale	206,426	336,364	443,617
Purchases of investment securities available-for-sale	(327,496)	(1,145,697)	(597,296)
Net change in partnership investments	(18,292)	(24,897)	(54,981)
Net change in other investments	1,896	240	985
Loans sold or participated to others	57,473	54,623	17,462
Proceeds from principal payments on direct finance leases	58,654	40,751	54,771
Net change in loans and leases	(784,355)	36,414	(489,477)
Net change in equipment owned under operating leases	6,710	2,913	26,414
Purchases of premises and equipment	(2,380)	(2,886)	(2,850)
Proceeds from disposal of premises and equipment	49	129	23
Purchases of bank owned life insurance policies	(10,000)	0	0
Proceeds from sales of other real estate and repossessions	2,648	4,279	10,271
Net change in investing activities	(784,872)	(598,559)	(582,658)
Financing activities:
Net change in demand deposits and savings accounts	(7,122)	1,016,257	1,069,843
Net change in time deposits	256,322	(283,220)	(481,141)
Net change in short-term borrowings	15,502	49,386	4,748
Proceeds from issuance of long-term debt	0	0	10,000
Payments on long-term debt	(25,530)	(13,460)	(2,905)
Stock issued under stock purchase plans	252	90	39
Acquisition of treasury stock	(6,836)	(33,136)	(6,415)
Net contributions from (distributions to) noncontrolling interests	6,466	9,361	23,442
Cash dividends paid on common stock	(32,102)	(31,340)	(29,764)
Net change in financing activities	206,952	713,938	587,847
Net change in cash and cash equivalents	(402,390)	282,140	159,682
Cash and cash equivalents, beginning of year	525,187	243,047	83,365
Cash and cash equivalents, end of year	$ 122,797	$ 525,187	$ 243,047

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOW (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Non-cash transactions:
Loans transferred to other real estate and repossessions	$ 1,811	$ 2,440	$ 4,317
Common stock matching contribution to Employee Stock Ownership and Profit Sharing Plan	683	715	622
Right of use assets obtained in exchange for lease obligation	2,027	1,344	2,612
Cash paid for:
Interest	26,233	20,245	47,134
Income taxes	$ 23,258	$ 15,360	$ 13,461

Accounting Policies

Accounting Policies	12 Months Ended
Accounting Policies	Dec. 31, 2022
Accounting Policies [Abstract]
Accounting Policies	Accounting Policies 1st Source Corporation is a bank holding company headquartered in South Bend, Indiana that provides, through its subsidiaries (collectively referred to as “1st Source” or “the Company”), a broad array of financial products and services. 1st Source Bank (“Bank”), its banking subsidiary, offers commercial and consumer banking services, trust and wealth advisory services, and insurance to individual and business clients. The following is a summary of significant accounting policies followed in the preparation of the consolidated financial statements. Basis of Presentation — The financial statements consolidate 1st Source, its subsidiaries (principally the Bank) and any variable interest entities (“VIEs”) for which the Company has concluded it has significant involvement in and the ability to direct the activities that impact the entity’s economic performance. All significant intercompany balances and transactions have been eliminated. For purposes of the parent company only financial information presented in Note 22, investments in subsidiaries are carried at equity in the underlying net assets. Use of Estimates in the Preparation of Financial Statements — Financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) require the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Business Combinations — Business combinations are accounted for under the purchase method of accounting. Under the purchase method, assets and liabilities of the business acquired are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired recorded as goodwill. Results of operations of the acquired business are included in the income statement from the date of acquisition. Cash Flows — For purposes of the consolidated and parent company only statements of cash flows, the Company considers cash and due from banks, federal funds sold and interest bearing deposits with other banks with original maturities of three months or less as cash and cash equivalents. Securities — Securities that the Company has the ability and positive intent to hold to maturity are classified as investment securities held-to-maturity. Held-to-maturity investment securities, when present, are carried at amortized cost. As of December 31, 2022 and 2021, the Company held no securities classified as held-to-maturity. Securities that may be sold in response to, or in anticipation of, changes in interest rates and resulting prepayment risk, or for other factors, are classified as available-for-sale and are carried at fair value. Unrealized gains and losses on debt securities are reported, net of applicable taxes, as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity. Unrealized gains and losses on equity securities are reflected, net of applicable taxes, in earnings. For available-for-sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of these criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value in Other Income on the Consolidated Statements of Income. For debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, nature of the security, the underlying collateral, and the financial condition of the issuer, among other factors. If this assessment indicates a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for available-for-sale securities losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for available-for-sale securities losses is recognized in other comprehensive income. Changes in the allowance for available-for-sale securities are recorded as a component of credit loss expense. Losses are charged against the allowance for available-for-sale securities losses when management believes the uncollectibility of an available-for-sale security is confirmed or when either criteria regarding intent or requirement to sell is met. Debt and equity securities that are purchased and held principally for the purpose of selling them in the near term are classified as trading account securities and are carried at fair value with unrealized gains and losses reported in earnings. Realized gains and losses on the sales of all securities are reported in earnings and computed using the specific identification cost basis. Other investments consist of shares of Federal Home Loan Bank of Indianapolis (FHLBI) and Federal Reserve Bank stock. As restricted member stocks, these investments are carried at cost. Both cash and stock dividends received on the stocks are reported as income. Quarterly, the Company reviews its investment in FHLBI for impairment. Factors considered in determining impairment are: history of dividend payments; determination of cause for any net loss; adequacy of capital; and review of the most recent financial statements. As of December 31, 2022 and 2021, it was determined that the Company’s investment in FHLBI stock is appropriately valued at cost, which equates to par value. In addition, other investments include interest bearing deposits with other banks with original maturities of greater than three months. These investments are in denominations, including accrued interest, that are fully insured by the FDIC. Loans and Leases — Loans are stated at the principal amount outstanding, net of unamortized deferred loan origination fees and costs and net of unearned income. Interest income is accrued as earned based on unpaid principal balances. Origination fees and direct loan and lease origination costs are deferred, and the net amount amortized to interest income over the estimated life of the related loan or lease. Loan commitment fees are deferred and amortized into other income over the commitment period. Direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, net of unamortized deferred lease origination fees and costs and unearned income. Only those costs incurred as a direct result of closing a lease transaction are capitalized and all initial direct costs are expensed immediately. Interest income on direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Accrued interest is included in Accrued Income and Other Assets on the Consolidated Statements of Financial Condition. The accrual of interest on loans and leases is discontinued when a loan or lease becomes contractually delinquent for 90 days, or when an individual analysis of a borrower’s credit worthiness indicates a credit should be placed on nonperforming status, except for residential mortgage loans and consumer loans that are well secured and in the process of collection. Residential mortgage loans are placed on nonaccrual at the time the loan is placed in foreclosure. When interest accruals are discontinued, interest credited to income in the current year is reversed and interest accrued in the prior year is charged to the allowance for loan and lease losses. However, in some cases, the Company may elect to continue the accrual of interest when the net realizable value of collateral is sufficient to cover the principal and accrued interest. When a loan or lease is classified as nonaccrual and the future collectability of the recorded loan or lease balance is doubtful, collections on interest and principal are applied as a reduction to principal outstanding. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured, which is typically evidenced by a sustained repayment performance of at least six months. Loans and leases that have been modified and economic concessions have been granted to borrowers who have experienced financial difficulties are considered a troubled debt restructuring (TDR). These concessions typically result from the Company’s loss mitigation activities and may include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months. When the Company modifies loans and leases in a TDR, it evaluates any possible impairment based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan or lease agreement, or uses the current fair value of the collateral, less selling costs for collateral dependent loans. If the Company determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance for loan and lease losses estimate or a charge-off to the allowance for loan and lease losses. In periods subsequent to modification, the Company evaluates all TDRs, including those that have payment defaults, for possible impairment and recognizes impairment through the allowance for loan and lease losses. The Company sells mortgage loans to the Government National Mortgage Association (GNMA) in the normal course of business and retains the servicing rights. The GNMA programs under which the loans are sold allow the Company to repurchase individual delinquent loans that meet certain criteria from the securitized loan pool. At its option, and without GNMA’s prior authorization, the Company may repurchase a delinquent loan for an amount equal to 100% of the remaining principal balance on the loan. Once the Company has the unconditional ability to repurchase a delinquent loan, the Company is deemed to have regained effective control over the loan and the Company is required to recognize the loan on its balance sheet and record an offsetting liability, regardless of its intent to repurchase the loan. At December 31, 2022 and 2021, residential real estate portfolio loans included $1.00 million and $1.33 million, respectively, of loans available for repurchase under the GNMA optional repurchase programs with the offsetting liability recorded within Other Short-term Borrowings on the Consolidated Statements of Financial Position. Mortgage Banking Activities — Loans held for sale are composed of performing one-to-four family residential mortgage loans originated for resale. Mortgage loans originated with the intent to sell are carried at fair value. The Company recognizes the rights to service mortgage loans for others as separate assets, whether the servicing rights are acquired through a separate purchase or through the sale of originated loans with servicing rights retained. The Company allocates a portion of the total proceeds of a mortgage loan to servicing rights based on the relative fair value. These assets are amortized as reductions of mortgage servicing fee income over the estimated servicing period in proportion to the estimated servicing income to be received. The balance of MSRs is located in Accrued Income and Other Assets on the Consolidated Statements of Financial Condition and the gains and losses on the sale of MSRs are recognized in Noninterest Income on the Consolidated Statements of Income in the period in which such rights are sold. MSRs are evaluated for impairment at each reporting date. For purposes of impairment measurement, MSRs are stratified based on the predominant risk characteristics of the underlying servicing, principally by loan type. If temporary impairment exists within a tranche, a valuation allowance is established through a charge to income equal to the amount by which the carrying value exceeds the fair value. If it is later determined all or a portion of the temporary impairment no longer exists for a particular tranche, the valuation allowance is reduced through a recovery of income. MSRs are also reviewed for permanent impairment. Permanent impairment exists when recoverability of a recorded valuation allowance is determined to be remote considering historical and projected interest rates, prepayments, and loan pay-off activity. When this situation occurs, the unrecoverable portion of the valuation allowance is applied as a direct write-down to the carrying value of the MSRs. Unlike a valuation allowance, a direct write-down permanently reduces the carrying value of the MSRs and the valuation allowance, precluding subsequent recoveries. As part of mortgage banking operations, the Company enters into commitments to originate loans whereby the interest rate on these loans is determined prior to funding (“rate lock commitments”). Similar to loans held for sale, the fair value of rate lock commitments is subject to change primarily due to changes in interest rates. Under the Company’s risk management policy, these fair values are hedged primarily by selling forward contracts on agency securities at the time the interest rate locks are issued to the customers. The rate lock commitments on mortgage loans intended to be sold and the related hedging instruments are recorded at fair value with changes in fair value recorded in current earnings. Allowance for Credit Losses: Loans and leases — Accrued interest on loans and leases is excluded from the calculation of the allowance for credit losses due to the Company’s charge-off policy to reverse accrued interest on nonperforming loans against interest income in a timely manner. Expected credit losses on net investments in leases, including any unguaranteed residual asset, are included in the allowance for loan and lease losses. Allowance for Loan and Lease Losses — Effective January 1, 2020, the allowance for credit losses is established for current expected credit losses on the Company’s loan and lease portfolio. Prior to January 1, 2020, the allowance was established based on an incurred loss model. It is the Company’s policy to maintain the allowance at a level believed to be adequate to absorb estimated credit losses within its portfolio of loans and leases. The determination of the allowance requires significant judgment to estimate credit losses measured on a collective pool basis when similar risk characteristics exist, and for loans evaluated individually. In determining the allowance, the Company estimates expected future losses for the loan’s entire contractual term adjusted for expected payments when appropriate. The allowance estimate considers relevant available information, from internal and external sources relating to the historical loss experience, current conditions, and reasonable and supportable forecasts for the Company’s outstanding loan and lease balances. The allowance is an estimation that reflects management’s evaluation of expected losses related to the Company’s financial assets measured at amortized cost. To ensure that the allowance is maintained at an adequate level, a detailed analysis is performed on a quarterly basis and an appropriate provision is made to adjust the allowance. The Company categorizes its loan portfolios into nine segments based on similar risk characteristics. Loans within each segment are collectively evaluated using either: 1) a cohort cumulative loss rate methodology (“cohort”) or, 2) the probability of default (“PD”)/loss given default (“LGD”) methodology (PD/LGD). The cohort methodology is applied to ungraded portfolios, portfolios where receipt of financial statements is generally less timely, and portfolios where there are numerous small dollar accounts that are credit scored. Loans are broken out by internal risk rating (loan grade) bands: 1-6 and 7-12 (special attention). For ungraded portfolios, there is only one pool. The cohort methodology has a steady state assumption; qualitative adjustments capture any differences that may exist between the current and historical conditions. The PD/LGD methodology is applied to graded portfolios due to the quantitative nature of the Company’s risk rating system and is consistent with the Company’s definition of risk, downgrading a credit where and when appropriate and recognizing losses in a timely manner. Loans are broken out by risk rating (loan grade) bands: 1-3, 4-6, 7-8, and 9-12. The amortized cost loan balances (rather than counts) are used for determining the transition and default probabilities. The Company uses risk rating bands as the active state to track the movement of loans through the transition matrix. The transition frequency is quarterly. Default is defined as the point at which a loan is placed on non-accrual status. In addition, a charge-off is assumed to be a default (i.e. a loan goes from accruing to charge-off, without ever being on non-accrual status). The PD is the cumulative probability of default estimated by use of a transition matrix (based on a Markov transition matrix methodology) which captures the migration of a loan from one risk rating band to another. The LGD is the ratio of loss relative to the exposure (amortized cost) at default. The current expected credit loss methodology has a factor for reasonable and supportable forecasts. Generally, reasonable and supportable forecasts are for two years or less and have a reversion period of a similar duration, reverting expected credit losses to a level that is consistent with our historical loss experience. Forecast adjustments are added via basis points for the cohort methodology. For the PD/LGD methodology, adjustments to the probability of default factor are applied through forecast adjustments to the PD factor used as the baseline transition matrix runout, thus impacting the historical loss ratio. The Company developed its reasonable and supportable forecasts using relevant data including, but not limited to, growth in gross domestic product, unemployment rates, housing market trends, commodity prices, inflation, and other factors associated with credit losses on the financial statements. For both the cohort and the PD/LGD methodologies, the Company uses qualitative adjustments to capture differences that may exist between the current and historical conditions. Qualitative factors include but are not limited to current market risk assessment by industry, recent loss experience in particular segments of the portfolios, movement in equipment values collateralizing specialized industry portfolios, concentrations of credit risk, delinquencies, trends in volume, experience and depth of relationship managers and division management, and the effects of changes in lending policies and practices, including changes in quality of the loan and lease origination, servicing and risk management process. Loans which exhibit different risk characteristics than the pool are evaluated individually for impairment. Loans evaluated individually are not included in the collective evaluation. These loans can be identified from a variety of sources including delinquency, non-accrual status and troubled debt restructurings (TDRs). The scope may include accruing loans that exhibit risk characteristics which differ from their pool or non-performing loans with risk characteristics not similar to other special attention loans in their pool. Individual reserves are determined based on an analysis of the loan’s expected future cash flows, the loan’s observable market value, or the fair value of the collateral less costs to sell. When foreclosure is probable, impairment is determined based on the collateral’s fair value less costs to sell. As a practical expedient, fair value less costs to sell may be used when developing the estimate of credit losses. Similarly, for a going concern analysis, a discounted cash method may be used. Liability for Credit Losses on Unfunded Loan Commitments — The liability for credit losses on commitments to originate loans and standby letters of credit is included in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition. Expected credit losses are estimated over the contractual period in which the Company is exposed to credit risk via a contractual obligation unless the obligation is unconditionally cancellable by the Company. The liability for credit losses on unfunded loan commitments is adjusted as a provision for credit losses in Other Noninterest Expense on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated useful life. Because business processes and credit risks associated with unfunded credit commitments are essentially the same as for loans, the Company utilizes similar processes to estimate its liability for unfunded credit commitments. Equipment Owned Under Operating Leases — As a lessor, the Company finances various types of construction equipment, medium and heavy duty trucks, automobiles and other equipment under leases classified as operating leases. The equipment underlying the operating leases is reported at cost, net of accumulated depreciation, on the Consolidated Statements of Financial Condition. These operating lease arrangements require the lessee to make a fixed monthly rental payment over a specified lease term generally ranging from three years to seven years. Revenue consists of the contractual lease payments and is recognized on a straight-line basis over the lease term and reported in Noninterest Income on the Consolidated Statements of Income. Leased assets are depreciated on a straight-line method over the lease term to the estimate of the equipment’s fair market value at lease termination, also referred to as “residual” value. The depreciation of these operating lease assets is reported in Noninterest Expense on the Consolidated Statements of Income. For automobile leases, fair value is based upon published industry market guides. For other equipment leases, fair value may be based upon observable market prices, third-party valuations, or prices received on sales of similar assets at the end of the lease term. These residual values are reviewed annually to ensure the recorded amount does not exceed the fair market value at the lease termination. At the end of the lease, the operating lease asset is either purchased by the lessee or returned to the Company. The Company is responsible for the payment of personal property taxes which is reported in Other Expense on the Consolidated Statements of Income. The lessee is responsible for reimbursing the Company for personal property taxes which is reported in Other Income on the Consolidated Statements of Income. The Company excludes sales taxes and other similar taxes from being reported as lease revenue with an associated expense. Lease Commitments — The Company leases certain banking center locations, office space, land and billboards. In determining whether a contract contains a lease, the Company examines the contract to ensure an asset was specifically identified and that the Company has control of use over the asset. To determine whether a lease is classified as operating or finance, the Company performs an economic life test on all building leases with greater than a twenty years term. Further, the Company performs a fair value test to identify any leases that have a present value of future lease payments over the lease term that is greater than 90% of the fair value of the building. The Company only capitalizes leases with an initial lease liability of $2,000 or greater. At lease inception, the Company determines the lease term by adding together the minimum lease term and all optional renewal periods that it is reasonably certain to renew. The Company determines this on each lease by considering all relevant contract-based, asset-based, market-based, and entity-based economic factors. Generally, the exercise of lease renewal options is at the Company’s sole discretion. The lease term is used to determine whether a lease is operating or finance and is used to calculate straight-line rent expense. Additionally, the depreciable life of leasehold improvements is limited by the expected lease term. Operating lease rentals are expensed on a straight-line basis over the life of the lease beginning on the date the Company takes possession of the property. Rent expense and variable lease costs are included in Net Occupancy Expense on the Consolidated Statements of Income. Included in variable lease costs are leases with rent escalations based on recent financial indices, such as the Consumer Price Index, where the Company initially measures lease payments using the index on the commencement date and records future changes in rent payments resulting from changes in the index to variable costs in the period the changes occur. Certain leases require the Company to pay common area maintenance, real estate taxes, insurance and other operating expenses associated with the leases premises. These expenses are classified in Net Occupancy Expense on the Consolidated Statements of Income, consistent with similar costs for owned locations. There are no residual value guarantees, restrictions or covenants imposed by leases. The Company accounts for lease and nonlease components together as a single lease component by class of underlying asset. Operating lease obligations with an initial term longer than 12 months are recorded with a right of use asset and a lease liability on the Consolidated Statements of Financial Condition. The discount rate used in determining the lease liability and related right of use asset is based upon what would be obtained by the Company for similar loans as an incremental rate as of the date of origination or renewal. Other Real Estate — Other real estate acquired through partial or total satisfaction of nonperforming loans is included in Other Assets on the Consolidated Statements of Financial Condition and recorded at fair value less anticipated selling costs based upon the property’s appraised value at the date of transfer, with any difference between the fair value of the property less cost to sell, and the carrying value of the loan charged to the allowance for loan and lease losses or other income, if a positive adjustment. Subsequent fair value write-downs or write-ups, to the extent of previous write-downs, property maintenance costs, and gains or losses recognized upon the sale of other real estate are recognized in Noninterest Expense on the Consolidated Statements of Income. Gains or losses resulting from the sale of other real estate are recognized on the date of sale. As of December 31, 2022 and 2021, other real estate had carrying values of $0.10 million and $0.00 million, respectively, and is included in Other Assets on the Consolidated Statements of Financial Condition. Repossessed Assets — Repossessed assets may include fixtures and equipment, inventory and receivables, aircraft, construction equipment, and vehicles acquired from business banking and specialty finance activities. Repossessed assets are included in Other Assets on the Consolidated Statements of Financial Condition at fair value of the equipment or vehicle less estimated selling costs. At the time of repossession, the recorded amount of the loan or lease is written down to the fair value of the equipment or vehicle by a charge to the allowance for loan and lease losses or other income, if a positive adjustment. Subsequent fair value write-downs or write-ups, to the extent of previous write-downs, equipment maintenance costs, and gains or losses recognized upon the sale of repossessions are recognized in Noninterest Expense on the Consolidated Statements of Income. Gains or losses resulting from the sale of repossessed assets are recognized on the date of sale. Repossessed assets totaled $0.33 million and $0.86 million, as of December 31, 2022 and 2021, respectively, and are included in Other Assets on the Consolidated Statements of Financial Condition. Premises and Equipment — Premises and equipment are stated at cost, less accumulated depreciation and amortization. The provision for depreciation is computed by the straight-line method, primarily with useful lives ranging from three years to 31.5 years. Maintenance and repairs are charged to expense as incurred, while improvements, which extend the useful life, are capitalized and depreciated over the estimated remaining life. Goodwill and Intangibles — Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. Other intangible assets represent purchased assets that also lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. Goodwill is reviewed for impairment at least annually or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the carrying amount. Goodwill is allocated into two reporting units. Fair value for each reporting unit is estimated using stock price multiples or earnings before interest, tax, depreciation and amortization (EBITDA) multiples. Intangible assets that have finite lives are amortized over their estimated useful lives and are subject to impairment testing. All of the Company’s other intangible assets have finite lives and are amortized on a straight-line basis over varying periods not exceeding twenty-five years. The Company has historically evaluated goodwill for impairment during the fourth quarter of each year, with financial data as of September 30. During the first quarter of 2021, management determined that the deterioration in general economic conditions as a result of the COVID-19 pandemic and responses thereto represented a triggering event prompting an evaluation of goodwill impairment. The Company performed impairment analyses in each quarter of 2021. In 2022, management determined conditions no longer represented a triggering event requiring quarterly analyses and returned to its historical practice of evaluating goodwill during the fourth quarter of the year. Based on the analyses performed each quarter of 2021 and the fourth quarter of 2022, the Company determined that goodwill was not impaired. Partnership Investments — The Company accounts for its investments in partnerships for which it owns less than fifty percent and has the ability to exercise significant influence over the partnership on the equity method. The Company accounts for its investments in partnerships for which it does not have the ability to exercise significant influence at fair value less impairment, if any, or cost less any impairment if the fair value is not readily determinable. The Company has elected to use the practical expedient to estimate fair value of an investment in an investment company using the net asset value of its partnership interest. The Company uses the hypothetical liquidation book value (HLBV) method for equity investments when the liquidation rights and priorities as defined by an equity investment agreement differ from what is reflected by the underlying percentage ownership interests. The HLBV method is commonly applied to equity investments in the renewable energy industry, where the economic benefits corresponding to an equity investment may vary at different points in time and/or are not directly linked to an investor’s ownership percentage. A cal

Recent Accounting Pronouncement

Recent Accounting Pronouncements	12 Months Ended
Recent Accounting Pronouncements	Dec. 31, 2022
Accounting Standards Update and Change in Accounting Principle [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Fair Value Measurements : In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-03 “Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.” These amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. This guidance is effective for public business entities for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted. The Company has assessed ASU 2022-03 and does not expect it to have a material impact on its accounting and disclosures. Financial Instruments–Credit Losses : In March 2022, the FASB issued ASU No. 2022-02 “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” These amendments eliminate the TDR recognition and measurement guidance and, instead, require that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The amendments also enhance existing disclosure requirements and introduce new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. Additionally, these amendments require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. The guidance is effective for entities that have adopted ASU 2016-13 for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. These amendments should be applied prospectively. If an entity elects to early adopt ASU 2022-02 in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. An entity may elect to early adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The Company adopted ASU 2022-02 on January 1, 2023 and it did not have a material impact on its accounting and disclosures. Reference Rate Reform: In March 2020, the FASB issued ASU No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. In January 2021, the FASB issued ASU 2021-01 which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. In December of 2022, the FASB issued ASU No. 2022-06 which extended the period of time prepares can utilize the reference rate reform relief guidance in Topic 848. The guidance ensures the relief in Topic 848 covers the period of time during which a significant number of modifications may take place and the ASU defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. The Company continues to implement its transition plan towards cessation of LIBOR and the modification of its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Company expects to utilize the LIBOR transition relief allowed under ASU 2020-04, ASU 2021-01 and ASU 2022-06, as applicable, and does not expect such adoption to have a material impact on its accounting and disclosures. The Company will continue to assess the impact as the reference rate transition progresses.

Investment Securities Available

Investment Securities Available-For-Sale	12 Months Ended
Investment Securities Available-For-Sale	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Investment Securities	Investment Securities Available-For-Sale The following table shows investment securities available-for-sale. (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2022 U.S. Treasury and Federal agencies securities $ 1,090,743 $ — $ (92,145) $ 998,598 U.S. States and political subdivisions securities 130,670 591 (8,499) 122,762 Mortgage-backed securities - Federal agencies 730,672 60 (93,674) 637,058 Corporate debt securities 16,486 — (355) 16,131 Foreign government securities 600 — (21) 579 Total investment securities available-for-sale $ 1,969,171 $ 651 $ (194,694) $ 1,775,128 December 31, 2021 U.S. Treasury and Federal agencies securities $ 1,093,780 $ 3,244 $ (13,018) $ 1,084,006 U.S. States and political subdivisions securities 95,700 1,130 (1,129) 95,701 Mortgage-backed securities - Federal agencies 663,441 4,745 (8,459) 659,727 Corporate debt securities 22,510 499 — 23,009 Foreign government securities 600 — (2) 598 Total investment securities available-for-sale $ 1,876,031 $ 9,618 $ (22,608) $ 1,863,041 Amortized cost excludes accrued interest receivable which is included in Accrued Income and Other Assets At December 31, 2022, the residential mortgage-backed securities held by the Company consisted primarily of GNMA, FNMA and FHLMC pass-through certificates which are guaranteed by those respective agencies of the United States government (Government Sponsored Enterprise, GSEs). The Company did not hold any marketable equity securities at December 31, 2022 and 2021. The following table shows the contractual maturities of investments in debt securities available-for-sale at December 31, 2022. Expected maturities will differ from contractual maturities, because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 63,325 $ 62,318 Due after one year through five years 1,112,166 1,016,225 Due after five years through ten years 21,835 18,204 Due after ten years 41,173 41,323 Mortgage-backed securities 730,672 637,058 Total debt securities available-for-sale $ 1,969,171 $ 1,775,128 The following table summarizes gross unrealized losses and fair value by investment category and age. At December 31, 2022, the Company’s available-for-sale securities portfolio consisted of 745 securities, 690 of which were in an unrealized loss position. Less than 12 Months 12 months or Longer Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2022 U.S. Treasury and Federal agencies securities $ 164,481 $ (6,299) $ 834,117 $ (85,846) $ 998,598 $ (92,145) U.S. States and political subdivisions securities 57,592 (2,126) 38,834 (6,373) 96,426 (8,499) Mortgage-backed securities - Federal agencies 198,469 (13,482) 426,989 (80,192) 625,458 (93,674) Corporate debt securities 16,132 (355) — — 16,132 (355) Foreign government securities 484 (16) 95 (5) 579 (21) Total debt securities available-for-sale $ 437,158 $ (22,278) $ 1,300,035 $ (172,416) $ 1,737,193 $ (194,694) December 31, 2021 U.S. Treasury and Federal agencies securities $ 789,536 $ (10,728) $ 84,191 $ (2,290) $ 873,727 $ (13,018) U.S. States and political subdivisions securities 39,585 (980) 4,875 (149) 44,460 (1,129) Mortgage-backed securities - Federal agencies 454,413 (7,312) 35,232 (1,147) 489,645 (8,459) Corporate debt securities — — — — — — Foreign government securities 598 (2) — — 598 (2) Total debt securities available-for-sale $ 1,284,132 $ (19,022) $ 124,298 $ (3,586) $ 1,408,430 $ (22,608) The Company does not consider available-for-sale securities with unrealized losses at December 31, 2022 to be experiencing credit losses and recognized no resulting allowance for credit losses. The Company does not intend to sell these investments and it is more likely than not that the Company will not be required to sell these investments before recovery of the amortized cost basis, which may be the maturity dates of the securities. The unrealized losses occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase. The following table shows the gross realized gains and losses from the available-for-sale debt securities portfolio. Realized gains and losses of all securities are computed using the specific identification cost basis. (Dollars in thousands) 2022 2021 2020 Gross realized gains $ — $ 221 $ 285 Gross realized losses (184) (901) (6) Net realized (losses) gains $ (184) $ (680) $ 279 At December 31, 2022 and 2021, investment securities with carrying values of $282.87 million and $351.13 million, respectively, were pledged as collateral for security repurchase agreements and for other purposes.

Allowance for Credit Losses

Allowance for Credit Losses	12 Months Ended
Allowance for Credit Losses	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance for Credit Losses	Allowance for Credit Losses Allowance for Loan and Lease Losses The methodology used to estimate the appropriate level of the allowance for loan and lease losses is described in Note 1, under the heading “Allowance for Credit Losses.” The allowance for loan and lease losses at December 31, 2022 and 2021, represents the Company’s current estimate of lifetime credit losses inherent in the loan and lease portfolio. The following table shows the changes in the allowance for loan and lease losses, segregated by portfolio segment, for each of the three years ended December 31. (Dollars in thousands) Commercial and agricultural Solar Auto and light truck Medium Aircraft Construction equipment Commercial real estate Residential real estate and home equity Consumer Total 2022 Balance, beginning of year $ 15,409 $ 6,585 $ 19,624 $ 6,015 $ 33,628 $ 19,673 $ 19,691 $ 5,084 $ 1,783 $ 127,492 Charge-offs 625 — 118 — — 1,114 538 284 730 3,409 Recoveries 56 — 417 — 785 17 45 160 460 1,940 Net charge-offs (recoveries) 569 — (299) — (785) 1,097 493 124 270 1,469 Provision (recovery of provision) (205) 632 (1,289) 1,551 6,680 5,463 (1,767) 1,518 662 13,245 Balance, end of year $ 14,635 $ 7,217 $ 18,634 $ 7,566 $ 41,093 $ 24,039 $ 17,431 $ 6,478 $ 2,175 $ 139,268 2021 Balance, beginning of year $ 16,680 $ 5,549 $ 28,926 $ 6,400 $ 34,053 $ 19,166 $ 22,758 $ 5,374 $ 1,748 $ 140,654 Charge-offs 2,930 — 7,797 — — 856 — 228 712 12,523 Recoveries 812 — 1,316 — 687 473 19 16 341 3,664 Net charge-offs (recoveries) 2,118 — 6,481 — (687) 383 (19) 212 371 8,859 Provision (recovery of provision) 847 1,036 (2,821) (385) (1,112) 890 (3,086) (78) 406 (4,303) Balance, end of year $ 15,409 $ 6,585 $ 19,624 $ 6,015 $ 33,628 $ 19,673 $ 19,691 $ 5,084 $ 1,783 $ 127,492 2020 Balance, beginning of year $ 20,926 $ 2,745 $ 14,400 $ 4,612 $ 31,058 $ 14,120 $ 18,350 $ 3,609 $ 1,434 $ 111,254 Impact of ASC 326 adoption (939) 284 (1,303) 2,414 484 372 (649) 1,688 233 2,584 Adjusted balance, beginning of year 19,987 3,029 13,097 7,026 31,542 14,492 17,701 5,297 1,667 113,838 Charge-offs 903 — 7,107 15 855 4,090 37 74 893 13,974 Recoveries 663 — 499 18 1,800 1,415 58 33 303 4,789 Net charge-offs (recoveries) 240 — 6,608 (3) (945) 2,675 (21) 41 590 9,185 Provision (recovery of provision) (3,067) 2,520 22,437 (629) 1,566 7,349 5,036 118 671 36,001 Balance, end of year $ 16,680 $ 5,549 $ 28,926 $ 6,400 $ 34,053 $ 19,166 $ 22,758 $ 5,374 $ 1,748 $ 140,654 The allowance for loan and lease losses increased year-over-year in 2022 as most portfolio segments experienced loan growth along with an adjustment to forecast due to increased risk during the forecast period attributable to a weakened domestic GDP outlook, persistent inflation, markedly higher interest rates and continued geopolitical uncertainty. Allowance increases were offset by a sizeable decline in the highly reserved bus segment of the auto and light truck portfolio due to continued pay downs and the removal of multiple qualitative adjustments specific to the segment. The bus segment was severely impacted by the pandemic and experienced sizeable credit losses in each of the previous two years. Credit quality within the bus segment is stabilizing with minimal delinquency and minimal new special attention activity in 2022. The year-over-year decline in reserves experienced in 2021 was due to improvements in credit quality attributable in large part to government stimulus payments which provided much needed relief to the Company’s customers during the pandemic. Commercial and agricultural – the decline in loan balances year-over-year was primarily attributable to PPP debt forgiveness along with a modest decline in core business balances. The allowance was flat year-over-year as lowly reserved PPP loans were offset by core business loans which carry higher reserves. Credit quality is stable. Solar – allowance increased due to loan growth offset by a reduction in qualitative adjustments given stable credit quality and no loss history since portfolio inception. Auto and light truck – allowance decreased due to declining balances and reduced qualitative adjustments in the highly reserved bus segment, partially offset by strong loan growth in the core auto rental and leasing segments which carry lower loss ratios. Medium and heavy duty truck – allowance increased due to loan growth. Credit quality metrics continued to be relatively strong for this portfolio. Aircraft – the allowance was principally impacted by strong loan growth in both the domestic and foreign aircraft segments. Credit quality metrics remain stable, offset by heightened economic and political concerns related to foreign loans. The Company has historically carried a higher allowance in this portfolio due to risk volatility. Construction equipment – allowance increase was driven by strong loan growth during the year. Commercial real estate – the allowance decrease was a result of the removal of qualitative adjustments related to the COVID-19 pandemic during the year, primarily in the hotel segment, offset by modest loan growth in the portfolio. Residential real estate and home equity – increased allowance due to forecast adjustments and loan growth. Consumer – the segment saw an increase in allowance due to forecast adjustments and loan growth. Economic Outlook As of December 31, 2022, the most significant economic factors impacting the Company’s loan portfolios was a weakened domestic growth outlook, exacerbated by persistent inflation, higher interest rates and the protracted war in Ukraine and resultant increased geopolitical uncertainty. The forecast considers global and domestic impacts from these factors as well as other key economic factors such as changes in unemployment, commodity prices, and the housing market which may impact the Company’s clients. The Company’s assumption was that economic growth will be weak in 2023 and exhibit below trend growth during 2024 with inflation slowly moving back towards the 2% Federal Reserve target rate resulting in an adverse impact on the loan and lease portfolio over the next two years. As a result of geopolitical risk and economic uncertainty, the Company’s future loss estimates may vary considerably from the December 31, 2022 assumptions. Liability for Credit Losses on Unfunded Loan Commitments The liability for credit losses inherent in unfunded loan commitments is included in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition. The following table shows the changes in the liability for credit losses on unfunded loan commitments for each of the three years ended December 31. (Dollars in thousands) 2022 2021 2020 Balance, beginning of year $ 4,196 $ 4,499 $ 3,172 Impact of ASC 326 adoption — — 777 Adjusted balance, beginning of year 4,196 4,499 3,949 Provision (recovery of provision) 1,420 (303) 550 Balance, end of year $ 5,616 $ 4,196 $ 4,499

Lease Investments

Lease Investments	12 Months Ended
Lease Investments	Dec. 31, 2022
Leases [Abstract]
Lease Investments	Lease Investments As a lessor, the Company’s loan and lease portfolio includes direct finance leases, which are included in Commercial and Agricultural, Solar, Auto and Light Truck, Medium and Heavy Duty Truck, Aircraft, and Construction Equipment on the Consolidated Statements of Financial Condition. The Company also finances various types of construction equipment, medium and heavy duty trucks, automobiles and other equipment under leases classified as operating leases, which are included in Equipment Owned Under Operating Leases, Net, on the Consolidated Statements of Financial Condition. The following table shows the components of the investment in direct finance and operating leases as of December 31. (Dollars in thousands) 2022 2021 Direct finance leases: Minimum lease payments $ 224,816 $ 172,017 Estimated unguaranteed residual values — — Less: Unearned income (50,633) (22,552) Net investment in direct finance leases $ 174,183 $ 149,465 Operating leases: Gross investment in operating leases $ 60,999 $ 95,046 Accumulated depreciation (29,299) (46,613) Net investment in operating leases $ 31,700 $ 48,433 The following table shows future minimum lease payments due from clients on direct finance and operating leases at December 31, 2022. (Dollars in thousands) Direct Operating Leases 2023 $ 48,011 $ 9,192 2024 32,764 5,526 2025 31,472 3,071 2026 25,890 1,489 2027 23,221 599 Thereafter 63,458 223 Total $ 224,816 $ 20,100 To mitigate the risk of loss, the Company seeks to diversify both the type of equipment leased and the industries in which the lessees participate. In addition, a portion of the Company’s leases are terminal rental adjustment clause or “TRAC” leases where the lessee effectively guarantees the full residual value through a rental adjustment at the end of term or those where partial value is guaranteed (“split-TRAC”), which has a limited residual risk. Under a split-TRAC structure, the limited residual risk would be satisfied first by the net sale proceeds of the leased asset. The lessee’s at-risk portion, or top risk, is satisfied last and is subject to repayment as additional rent, if the TRAC amount is not satisfied by the net sale proceeds. The carrying amount of residual assets covered by residual value guarantees was $29.65 million and $27.33 million at December 31, 2022 and December 31, 2021, respectively. The following table shows interest income recognized from direct finance lease payments and operating lease equipment rental income and related depreciation expense. (Dollars in thousands) 2022 2021 2020 Direct finance leases: Interest income on lease receivable $ 9,008 $ 6,634 $ 8,258 Operating leases: Income related to lease payments $ 12,274 $ 16,647 $ 23,380 Depreciation expense 10,023 13,694 20,203 Income related to reimbursements from lessees for personal property tax on operating leased equipment for the years ended December 31, 2022, 2021 and 2020 were $0.35 million, $0.46 million and $0.61 million, respectively. Expense related to personal property tax payments on operating leased equipment for the year ended December 31, 2022, 2021 and 2020 were $0.35 million, $0.46 million and $0.61 million, respectively. During the year ended December 31, 2022, the Company recorded impairment charges of $0.06 million. The impairment charges were recorded as a result of the annual review of operating lease residual values and was recognized in Depreciation — Leased Equipment on the Consolidated Statements of Income.

Premises and Equipment

Premises and Equipment	12 Months Ended
Premises and Equipment	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Premises and Equipment	Premises and Equipment The following table shows premises and equipment as of December 31. (Dollars in thousands) 2022 2021 Land $ 15,500 $ 15,500 Buildings and improvements 61,860 61,257 Furniture and equipment 40,404 39,418 Total premises and equipment 117,764 116,175 Accumulated depreciation and amortization (72,991) (69,137) Net premises and equipment $ 44,773 $ 47,038 Depreciation and amortization of properties and equipment totaled $4.60 million in 2022, $5.09 million in 2021, and $5.67 million in 2020.

Mortgage Servicing Rights

Mortgage Servicing Rights	12 Months Ended
Mortgage Servicing Rights	Dec. 31, 2022
Transfers and Servicing of Financial Assets [Abstract]
Mortgage Servicing Rights	Mortgage Servicing RightsThe unpaid principal balance of residential mortgage loans serviced for third parties was $848.96 million at December 31, 2022, compared to $883.90 million at December 31, 2021, and $838.45 million at December 31, 2020. Amortization expense on MSRs is expected to total $0.67 million, $0.58 million, $0.50 million, $0.42 million, and $0.36 million in 2023, 2024, 2025, 2026, and 2027, respectively. Projected amortization excludes the impact of future asset additions or disposals. The following table shows changes in the carrying value of MSRs and the associated valuation allowance. (Dollars in thousands) 2022 2021 Mortgage servicing rights: Balance at beginning of year $ 4,671 $ 4,616 Additions 753 2,172 Amortization (1,287) (2,117) Sales — — Carrying value before valuation allowance at end of year 4,137 4,671 Valuation allowance: Balance at beginning of year — (812) Impairment recoveries — 812 Balance at end of year $ — $ — Net carrying value of mortgage servicing rights at end of year $ 4,137 $ 4,671 Fair value of mortgage servicing rights at end of year $ 8,007 $ 5,640 At December 31, 2022, the fair value of MSRs exceeded the carrying value reported on the Consolidated Statements of Financial Condition by $3.87 million. This difference represents increases in the fair value of certain MSRs that could not be recorded above cost basis. Funds held in trust at 1st Source for the payment of principal, interest, taxes and insurance premiums applicable to mortgage loans being serviced for others, were approximately $8.57 million and $13.76 million at December 31, 2022 and December 31, 2021, respectively. Mortgage loan contractual servicing fees, including late fees and ancillary income, were $2.79 million, $3.17 million, and $3.13 million for 2022, 2021, and 2020, respectively. Mortgage loan contractual servicing fees are included in Mortgage Banking Income on the Consolidated Statements of Income.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	12 Months Ended
Intangible Assets and Goodwill	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	Intangible Assets and Goodwill At December 31, 2022, intangible assets consisted of goodwill of $83.87 million and other intangible assets of $0.04 million, which was net of accumulated amortization of $0.10 million. At December 31, 2021, intangible assets consisted of goodwill of $83.87 million and other intangible assets of $0.06 million, which was net of accumulated amortization of $0.08 million. Intangible asset amortization was $0.02 million, $0.02 million, and $0.02 million for 2022, 2021, and 2020, respectively. Amortization on other intangible assets is expected to total $0.02 million, $0.02 million, $0.00 million, $0.00 million, and $0.00 million in 2023, 2024, 2025, 2026, and 2027, respectively. The following table shows a summary of other intangible assets as of December 31. (Dollars in thousands) 2022 2021 Other intangibles: Gross carrying amount $ 146 $ 146 Less: accumulated amortization (106) (86) Net carrying amount $ 40 $ 60

Deposits

Deposits	12 Months Ended
Deposits	Dec. 31, 2022
Deposits [Abstract]
Deposits	Deposits The aggregate amount of certificates of deposit of $250,000 or more and other time deposits of $250,000 or more outstanding at December 31, 2022 and 2021 was $600.37 million and $290.89 million, respectively. The following table shows the amount of certificates of deposit of $250,000 or more and other time deposits of $250,000 or more outstanding at December 31, 2022, by time remaining until maturity. (Dollars in thousands) Under 3 months $ 149,632 4 – 6 months 71,595 7 – 12 months 175,229 Over 12 months 203,911 Total $ 600,367 The following table shows scheduled maturities of time deposits, including both private and public funds, at December 31, 2022. (Dollars in thousands) 2023 $ 796,947 2024 154,656 2025 82,635 2026 51,355 2027 33,229 Thereafter 21,637 Total $ 1,140,459

Borrowed Funds and Mandatorily

Borrowed Funds and Mandatorily Redeemable Securities	12 Months Ended
Borrowed Funds and Mandatorily Redeemable Securities	Dec. 31, 2022
Debt Disclosure [Abstract]
Borrowed Funds And Mandatorily Redeemable Securities	Borrowed Funds and Mandatorily Redeemable Securities The following table shows the details of long-term debt and mandatorily redeemable securities as of December 31, 2022 and 2021. (Dollars in thousands) 2022 2021 Federal Home Loan Bank borrowings (1.04% – 2.80%) $ 21,315 $ 44,150 Mandatorily redeemable securities 17,905 20,598 Other long-term debt 7,335 6,503 Total long-term debt and mandatorily redeemable securities $ 46,555 $ 71,251 Annual maturities of long-term debt outstanding at December 31, 2022, for the next five years and thereafter beginning in 2023, are as follows: $3.16 million; $12.29 million; $1.25 million; $11.14 million; $0.68 million; and $18.04 million. At December 31, 2022, the Federal Home Loan Bank borrowings represented a source of funding for community economic development activities, agricultural loans and general funding for the bank and consisted of eight fixed rate notes with maturities ranging from 2023 to 2026. These notes were collateralized by $29.73 million of certain real estate loans. Mandatorily redeemable securities as of December 31, 2022 and 2021, of $17.91 million and $20.60 million, respectively reflected the “book value” shares under the 1st Source Executive Incentive Plan. See Note 16 - Stock Based Compensation (Stock Award Plans) for additional information. Dividends paid on these shares and changes in book value per share are recorded as Other interest expense on the Consolidated Statements of Income. Total interest expense recorded for 2022, 2021, and 2020 was $(0.35) million, $1.79 million, and $2.14 million, respectively. Negative interest expense recognized during 2022 was due to a decrease in book value per share during the year. The following table shows the details of short-term borrowings as of December 31, 2022 and 2021. 2022 2021 (Dollars in thousands) Amount Weighted Average Rate Amount Weighted Average Rate Federal funds purchased $ — — % $ — — % Securities sold under agreements to repurchase 141,432 0.05 194,727 0.05 Commercial paper 3,096 0.03 3,967 0.04 Federal Home Loan Bank advances 70,000 4.16 — — Other short-term borrowings 1,001 — 1,333 — Total short-term borrowings $ 215,529 1.39 % $ 200,027 0.05 %

Variable Interest Entities

Variable Interest Entities	12 Months Ended
Variable Interest Entities	Dec. 31, 2022
Variable Interest Entities
Variable Interest Entities	Variable Interest Entities A variable interest entity (VIE) is a partnership, limited liability company, trust or other legal entity that meets any one of the following criteria: • The entity does not have sufficient equity to conduct its activities without additional subordinated financial support from another party. • The entity’s investors lack the power to direct the activities that most significantly affect the entity’s economic performance. • The entity’s at-risk holders do not have the obligation to absorb the losses or the right to receive residual returns. • The voting rights of some investors are not proportional to their economic interests in the entity, and substantially all of the entity’s activities involve, or are conducted on behalf of, investors with disproportionately few voting rights. The Company is involved in various entities that are considered to be VIEs. The Company’s investments in VIEs are primarily related to investments promoting affordable housing, community development and renewable energy sources. Some of these tax-advantaged investments support the Company’s regulatory compliance with the Community Reinvestment Act. The Company’s investments in these entities generate a return primarily through the realization of federal and state income tax credits and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These tax credits are recognized as a reduction of tax expense or, for investments qualifying as investment tax credits, as a reduction to the related investment asset. The Company recognized federal and state income tax credits related to its affordable housing and community development tax-advantaged investments in tax expense of $2.06 million, $2.02 million and $1.72 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company also recognized $9.83 million, $3.53 million and $31.08 million of investment tax credits for the years ended December 31, 2022, 2021 and 2020, respectively. The Company is not required to consolidate VIEs in which it has concluded it does not have a controlling financial interest, and thus is not the primary beneficiary. In such cases, the Company does not have both the power to direct the entities’ most significant activities and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. As a limited partner in these operating partnerships, we are allocated credits and deductions associated with the underlying properties. The Company has determined that it is not the primary beneficiary of these investments because the general partners have the power to direct activities that most significantly influence the economic performance of their respective partnerships. The Company’s investments in these unconsolidated VIEs are carried in Other Assets on the Consolidated Statements of Financial Condition. The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are generally carried in Other Liabilities on the Consolidated Statements of Financial Condition. The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment recorded on the Consolidated Statements of Financial Condition, net of unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the community-based business, housing projects and renewable energy projects completely fail and do not meet certain taxing authority compliance requirements resulting in recapture of the related tax credits. The following table provides a summary of investments in affordable housing, community development and renewable energy VIEs that the Company has not consolidated as of December 31, 2022 and 2021. (Dollars in thousands) 2022 2021 Investment carrying amount $ 70,887 $ 35,968 Unfunded capital and other commitments 64,520 29,670 Maximum exposure to loss 45,020 50,319 The Company is required to consolidate VIEs in which it has concluded it has significant involvement in and the ability to direct the activities that impact the entity’s economic performance. The Company is the managing general partner of entities to which it shares interest in tax-advantaged investments with a third party. At December 31, 2022 and 2021, approximately $66.26 million and $59.08 million, respectively, of the Company’s assets and $0.00 million and $0.00 million, respectively, of its liabilities included on the Consolidated Statements of Financial Condition were related to tax-advantaged investment VIEs which the Company has consolidated. The assets of the consolidated VIE are reported in Other Assets, the liabilities are reported in Other Liabilities and the non-controlling interest is reported in Equity on the Consolidated Statements of Financial Condition. The assets of a particular VIE are the primary source of funds to settle its obligations. The creditors of the VIE do not have recourse to the general credit of the Company. The Company’s exposure to the consolidated VIE is generally limited to the carrying value of its variable interest plus any related tax credits previously recognized. Additionally, the Company sponsors one trust, 1st Source Master Trust (Capital Trust) of which 100% of the common equity is owned by the Company. The Capital Trust was formed in 2007 for the purpose of issuing corporation-obligated mandatorily redeemable capital securities (the capital securities) to third-party investors and investing the proceeds from the sale of the capital securities solely in junior subordinated debenture securities of the Company (the subordinated notes). The subordinated notes held by the Capital Trust are the sole assets of the Capital Trust. The Capital Trust qualifies as a variable interest entity for which the Company is not the primary beneficiary and therefore reported in the financial statements as an unconsolidated subsidiary. The junior subordinated debentures are reflected as subordinated notes on the Consolidated Statements of Financial Condition with the corresponding interest distributions reflected as Interest Expense on the Consolidated Statements of Income. The common shares issued by the Capital Trust are included in Other Assets on the Consolidated Statements of Financial Condition. Distributions on the capital securities issued by the Capital Trust are payable quarterly at a rate per annum equal to the interest rate being earned by the Capital Trust on the subordinated notes held by the Capital Trust. The capital securities are subject to mandatory redemption, in whole or in part, upon repayment of the subordinated notes. The Company has entered into agreements which, taken collectively, fully and unconditionally guarantee the capital securities subject to the terms of each of the guarantees. The capital securities held by the Capital Trust qualify as Tier 1 capital under Federal Reserve Board guidelines. The following table shows subordinated notes at December 31, 2022. (Dollars in thousands) Amount of Subordinated Notes Interest Rate Maturity Date June 2007 issuance (1) $ 41,238 7.22 % 6/15/2037 August 2007 issuance (2) 17,526 6.25 % 9/15/2037 Total $ 58,764 (1) Fixed rate through life of debt. (2) 3-Month LIBOR +1.48% through remaining life of debt.

Earnings Per Share

Earnings Per Share	12 Months Ended
Earnings Per Share	Dec. 31, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Participating securities include non-vested restricted stock awards. Non-vested restricted stock awards are considered participating securities to the extent the holders of these securities receive non-forfeitable dividends at the same rate as holders of common stock. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. Stock options, where the exercise price was greater than the average market price of the common shares, were excluded from the computation of diluted earnings per common share because the result would have been antidilutive. No stock options were considered antidilutive as of December 31, 2022, 2021 and 2020. The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share for the three years ending December 31. (Dollars in thousands - except per share amounts) 2022 2021 2020 Distributed earnings allocated to common stock $ 31,095 $ 30,369 $ 28,859 Undistributed earnings allocated to common stock 88,419 87,237 52,044 Net earnings allocated to common stock 119,514 117,606 80,903 Net earnings allocated to participating securities 995 928 534 Net income allocated to common stock and participating securities $ 120,509 $ 118,534 $ 81,437 Weighted average shares outstanding for basic earnings per common share 24,687,324 25,038,127 25,525,154 Dilutive effect of stock compensation — — — Weighted average shares outstanding for diluted earnings per common share 24,687,324 25,038,127 25,525,154 Basic earnings per common share $ 4.84 $ 4.70 $ 3.17 Diluted earnings per common share $ 4.84 $ 4.70 $ 3.17

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	12 Months Ended
Accumulated Other Comprehensive Loss	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The following table presents reclassifications out of accumulated other comprehensive loss related to unrealized gains and losses on available-for-sale securities for the two years ending December 31. (Dollars in thousands) 2022 2021 Affected Line Item in the Statements of Income Realized losses included in net income $ (184) $ (680) (Losses) gains on investment securities available-for-sale (184) (680) Income before income taxes Tax effect 43 160 Income tax expense Net of tax $ (141) $ (520) Net income

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 31, 2022
Retirement Benefits [Abstract]
Employee Benefit Plans	Employee Benefit Plans The 1st Source Corporation Employee Stock Ownership and Profit Sharing Plan (as amended, the “Plan”) includes an employee stock ownership component, which is designed to invest in and hold 1st Source common stock, and a 401(k) plan component, which holds all Plan assets not invested in 1st Source common stock. The Plan encourages diversification of investments with opportunities to change investment elections and contribution levels. Employees are eligible to participate in the Plan the first of the month following 90 days of employment. The Company matches dollar for dollar on the first 4% of deferred compensation, plus 50 cents on the dollar of the next 2% deferrals. The Company will also contribute to the Plan an amount designated as a fixed 2% employer contribution. The amount of fixed contribution is equal to two percent of the participant’s eligible compensation. Additionally, each year the Company may, in its sole discretion, make a discretionary profit sharing contribution. As of December 31, 2022 and 2021, there were 730,151 and 751,447 shares, respectively, of 1st Source Corporation common stock held in relation to employee benefit plans. The Company contributions are allocated among the participants on the basis of compensation. Each participant’s account is credited with cash and/or shares of 1st Source common stock based on that participant’s compensation earned during the year. After completing 5 years of service in which they worked at least 1,000 hours per year, a participant will be completely vested in the Company’s contribution. An employee is always 100% vested in their deferral. Plan participants are entitled to receive distributions from their Plan accounts in-service and upon termination of service, retirement, or death. Contribution expense for the years ended December 31, 2022, 2021, and 2020, amounted to $6.22 million, $6.31 million, and $5.70 million, respectively.

Stock Based Compensation

Stock Based Compensation	12 Months Ended
Stock Based Compensation	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Stock Based Compensation	Stock Based Compensation As of December 31, 2022, the Company had four active stock-based employee compensation plans. These plans include three executive stock award plans, the Executive Incentive Plan (EIP), the Restricted Stock Award Plan (RSAP), the Strategic Deployment Incentive Plan (SDP); and the Employee Stock Purchase Plan (ESPP). The 2011 Stock Option Plan was approved by the shareholders on April 21, 2011 but the Company had not made any grants through December 31, 2022. These stock-based employee compensation plans were established to help retain and motivate key employees. All of the plans have been approved by the shareholders of 1st Source Corporation. The Executive Compensation and Human Resources Committee (the “Committee”) of the 1st Source Corporation Board of Directors has sole authority to select the employees, establish the awards to be issued, and approve the terms and conditions of each award under the stock-based compensation plans. Stock-based compensation to employees is recognized as compensation cost on the Consolidated Statements of Income based on their fair values on the measurement date, which, for 1st Source, is the date of grant. Stock-based compensation expense is recognized ratably over the requisite service period for all awards. The total fair value of share awards vested was $4.08 million during 2022, $3.45 million in 2021, and $2.67 million in 2020. The following table shows the combined summary of activity regarding active stock option and stock award plans. Non-Vested Stock Awards Outstanding Shares Available for Grant Number of Shares Weighted-Average Grant-Date Fair Value Balance, January 1, 2020 664,502 218,991 $ 29.60 Shares authorized - 2020 EIP 60,233 — — Granted (147,576) 147,576 37.41 Stock awards vested — (74,203) 28.95 Forfeited 49 (870) 31.82 Balance, December 31, 2020 577,208 291,494 33.71 Shares authorized - 2021 EIP 62,369 — — Granted (79,072) 79,072 36.22 Stock awards vested — (92,622) 32.53 Forfeited 250 (3,798) 32.12 Balance, December 31, 2021 560,755 274,146 34.86 Shares authorized - 2022 EIP 287,503 — — Granted (127,198) 127,198 40.44 Stock awards vested — (97,640) 34.92 Forfeited 9,131 (15,179) 36.53 Balance, December 31, 2022 730,191 288,525 $ 37.03 Stock Option Plans — Incentive stock option plans include the 2011 Stock Option Plan (the “2011 Plan”). Each award from the plan is evidenced by an award agreement that specifies the option price, the duration of the option, the number of shares to which the option pertains, and such other provisions as the Committee determines. The option price is equal to the fair market value of a share of 1st Source Corporation’s common stock on the date of grant. Options granted expire at such time as the Committee determines at the date of grant and in no event does the exercise period exceed a maximum of ten years. Upon merger, consolidation, or other corporate consolidation in which 1st Source Corporation is not the surviving corporation, as defined in the plans, all outstanding options immediately vest. There were zero stock options exercised during 2022, 2021 or 2020. All shares issued in connection with stock option exercises and non-vested stock awards are issued from available treasury stock. No stock-based compensation expense related to stock options was recognized in 2022, 2021 or 2020. The fair value of each option on the date of grant is estimated using the Black-Scholes option pricing model. Expected volatility is based on the historical volatility estimated over a period equal to the expected life of the options. In estimating the fair value of stock options under the Black-Scholes valuation model, separate groups of employees that have similar historical exercise behavior are considered separately. The expected life of the options granted is derived based on past experience and represents the period of time that options granted are expected to be outstanding. Stock Award Plans — Incentive stock award plans include the EIP, the SDP and the RSAP. The EIP is administered by the Committee. Awards under the EIP and SDP include “book value” shares and “market value” shares of common stock. These shares are awarded annually based on weighted performance criteria and generally vest over a period of five years. The EIP book value shares may only be sold to 1st Source and such sale is mandatory in the event of death, retirement, disability, or termination of employment. The RSAP is designed for key employees. Awards under the RSAP are made to employees recommended by the Chief Executive Officer and approved by the Committee. Shares granted under the RSAP vest over a period of up to ten years and vesting is based upon meeting certain various criteria, including continued employment with 1st Source. Stock-based compensation expense relating to the EIP, SDP and RSAP totaled $3.59 million in 2022, $4.21 million in 2021, and $3.29 million in 2020. The total income tax benefit recognized in the accompanying Consolidated Statements of Income related to stock-based compensation was $0.83 million in 2022, $0.99 million in 2021, and $0.77 million in 2020. Unrecognized stock-based compensation expense related to non-vested stock awards (EIP/SDP/RSAP) was $7.90 million at December 31, 2022. At such date, the weighted-average period over which this unrecognized expense was expected to be recognized was 3.11 years. The fair value of non-vested stock awards for the purposes of recognizing stock-based compensation expense is market price of the stock on the measurement date, which, for the Company’s purposes is the date of the award. Employee Stock Purchase Plan — The Company offers an ESPP for substantially all employees with at least two years of service on the effective date of an offering under the plan. Eligible employees may elect to purchase any dollar amount of stock, so long as such amount does not exceed 25% of their base rate of pay and the aggregate stock accrual rate for all offerings does not exceed $25,000 in any calendar year. The purchase price for shares offered is the lower of the closing market bid price for the offering date or the average market bid price for the five business days preceding the offering date. The purchase price and premium/(discount) to the actual market closing price on the offering date for the 2022, 2021, and 2020 offerings were $46.78 (-0.34%), $49.98 (-0.42%), and $34.35 (1.78%), respectively. Payment for the stock is made through payroll deductions over the offering period, and employees may discontinue the deductions at any time and exercise the option or take the funds out of the program. The most recent offering began June 1, 2022 and runs through June 1, 2024, with $209,200 in stock value to be purchased at $46.78 per share.

Income Taxes

Income Taxes	12 Months Ended
Income Taxes	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The following table shows the composition of income tax expense. Year Ended December 31 (Dollars in thousands) 2022 2021 2020 Current: Federal $ 38,779 $ 16,346 $ 42,411 State 6,937 4,586 6,629 Total current 45,716 20,932 49,040 Deferred: Federal (7,936) 14,206 (21,865) State (1,525) 1,190 (2,295) Total deferred (9,461) 15,396 (24,160) Total provision $ 36,255 $ 36,328 $ 24,880 The following table shows the reasons for the difference between income tax expense and the amount computed by applying the statutory federal income tax rate (21%) to income before income taxes. 2022 2021 2020 Year Ended December 31 (Dollars in thousands) Amount Percent of Pretax Income Amount Percent of Pretax Income Amount Percent of Pretax Income Statutory federal income tax $ 32,925 21.0 % $ 32,526 21.0 % $ 22,332 21.0 % (Decrease) increase in income taxes resulting from: Tax-exempt interest income (504) (0.3) (373) (0.2) (439) (0.4) State taxes, net of federal income tax benefit 4,275 2.7 4,563 2.9 3,424 3.2 Other (441) (0.3) (388) (0.2) (437) (0.4) Total $ 36,255 23.1 % $ 36,328 23.5 % $ 24,880 23.4 % The tax expense related to (losses) gains on investment securities available-for-sale for the years 2022, 2021, and 2020 was approximately $(39,000), $(164,000), and $67,000, respectively. The following table shows the composition of deferred tax assets and liabilities as of December 31, 2022 and 2021. (Dollars in thousands) 2022 2021 Deferred tax assets: Allowance for credit losses $ 33,237 $ 32,431 Operating lease liability 4,728 5,145 Accruals for employee benefits 3,752 3,837 Capitalized loan costs — 15 Net unrealized losses on securities available-for-sale 46,353 3,128 Other 426 1,015 Total deferred tax assets 88,496 45,571 Deferred tax liabilities: Differing depreciable bases in premises and leased equipment 7,373 10,796 Right of use assets - leases 5,037 5,315 Differing bases in assets related to acquisitions 4,305 4,219 Tax advantaged partnerships 3,823 9,502 Other 245 713 Total deferred tax liabilities 20,783 30,545 Net deferred tax asset $ 67,713 $ 15,026 No valuation allowance for deferred tax assets was recorded at December 31, 2022 and 2021 as the Company believes it is more likely than not that all of the deferred tax assets will be realized. Additionally, the tax credit carryforward generated in 2020 was fully utilized in 2021. Tax years that remain open and subject to audit include the federal 2019-2022 years and the Indiana 2019-2022 years. The Company does not anticipate a significant change in the amount of uncertain tax positions within the next 12 months.

Contingent Liabilities, Commitm

Contingent Liabilities, Commitments, and Financial Instruments with Off-Balance-Sheet Risk	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Contingent Liabilities, Commitments, and Financial Instruments with Off-Balance-Sheet Risk	Contingent Liabilities, Commitments, and Financial Instruments with Off-Balance-Sheet Risk Contingent Liabilities —1st Source and its subsidiaries are defendants in various legal proceedings arising in the normal course of business. In the opinion of management, based upon present information including the advice of legal counsel, the ultimate resolution of these proceedings will not have a material effect on the Company’s consolidated financial position or results of operations. 1st Source Bank sells residential mortgage loans to Fannie Mae as well as FHA-insured, USDA-insured and VA-guaranteed loans in Ginnie Mae mortgage-backed securities. Additionally, the Bank has sold loans on a service released basis to various other financial institutions in the past. The agreements under which the Bank sells these mortgage loans contain various representations and warranties regarding the acceptability of loans for purchase. On occasion, the Bank may be required to indemnify the loan purchaser for credit losses on loans that were later deemed ineligible for purchase or may be required to repurchase a loan. Both circumstances are collectively referred to as “repurchases.” The Company’s liability for repurchases, included in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition, was $0.17 million and $0.22 million as of December 31, 2022 and 2021, respectively. The mortgage repurchase liability represents the Company’s best estimate of the loss that it may incur. The estimate is based on specific loan repurchase requests and a historical loss ratio with respect to origination dollar volume. Because the level of mortgage loan repurchase losses are dependent on economic factors, investor demand strategies and other external conditions that may change over the life of the underlying loans, the level of liability for mortgage loan repurchase losses is difficult to estimate and requires considerable management judgment. Lease Commitments — The Company and its subsidiaries are obligated under operating leases for certain office premises and equipment. The following table shows operating lease right of use assets and operating lease liabilities as of December 31. (Dollars in thousands) Statement of Financial Condition classification 2022 2021 Operating lease right of use assets Accrued income and other assets $ 20,916 $ 22,071 Operating lease liabilities Accrued expenses and other liabilities $ 19,634 $ 21,364 The following table shows the components of operating leases expense for the year ended December 31. (Dollars in thousands) Statement of Income classification 2022 2021 2020 Operating lease cost Net occupancy expense $ 3,527 $ 3,480 $ 3,472 Short-term lease cost Net occupancy expense 18 20 8 Variable lease cost (recovery of cost) Net occupancy expense 8 — (30) Total operating lease cost $ 3,553 $ 3,500 $ 3,450 The following table shows future minimum rental commitments for all noncancellable operating leases with an initial term longer than 12 months for the next five years and thereafter. (Dollars in thousands) 2023 $ 3,862 2024 3,281 2025 2,913 2026 2,620 2027 2,091 Thereafter 6,398 Total lease payments 21,165 Less: imputed interest (1,531) Present value of operating lease liabilities $ 19,634 The following table shows the weighted average remaining operating lease term, the weighted average discount rate and supplemental Consolidated Statement of Cash Flows information for operating leases at December 31. (Dollars in thousands) 2022 2021 2020 Weighted average remaining lease term 9.33 years 9.31 years 10.17 years Weighted average discount rate 1.85 % 1.75 % 1.80 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,298 $ 4,006 $ 3,794 There were no new significant leases that had not yet commenced as of December 31, 2022. Financial Instruments with Off-Balance-Sheet Risk — To meet the financing needs of our clients, 1st Source and its subsidiaries are parties to financial instruments with off-balance-sheet risk in the normal course of business. These off-balance-sheet financial instruments include commitments to originate and sell loans and standby letters of credit. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition. Financial instruments, whose contract amounts represent credit risk as of December 31, were as follows: (Dollars in thousands) 2022 2021 Amounts of commitments: Loan commitments to extend credit $ 1,234,866 $ 1,148,984 Standby letters of credit $ 18,055 $ 24,657 Commercial and similar letters of credit $ 2,368 $ 8,531 The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for loan commitments and standby letters of credit is represented by the dollar amount of those instruments. The Company uses the same credit policies and collateral requirements in making commitments and conditional obligations as it does for on-balance-sheet instruments. Loan commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company grants mortgage loan commitments to borrowers subject to normal loan underwriting standards. The interest rate risk associated with these loan commitments is managed by entering into contracts for future deliveries of loans. Standby letters of credit are conditional commitments issued to guarantee the performance of a client to a third party. The credit risk involved in and collateral obtained when issuing standby letters of credit are essentially the same as those involved in extending loan commitments to clients. Standby letters of credit generally have terms ranging from two months to one year. Commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and the third party. Commercial letters of credit generally have terms ranging from two months to six months.

Derivative Financial Instrument

Derivative Financial Instruments	12 Months Ended
Derivative Financial Instruments	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments Commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans are considered derivative instruments. See Note 18 for further information. The Company has certain interest rate derivative positions that are not designated as hedging instruments. Derivative assets and liabilities are recorded at fair value on the Consolidated Statements of Financial Condition and do not take into account the effects of master netting agreements. Master netting agreements allow the Company to settle all derivative contracts held with a single counterparty on a net basis, and to offset net derivative positions with related collateral, where applicable. These derivative positions relate to transactions in which the Company enters into an interest rate swap with a client while at the same time entering into an offsetting interest rate swap with another financial institution. In connection with each transaction, the Company agrees to pay interest to the client on a notional amount at a variable interest rate and receive interest from the client on the same notional amount at a fixed interest rate. At the same time, the Company agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows the client to effectively convert a variable rate loan to a fixed rate. Because the terms of the swaps with the customers and the other financial institution offset each other, with the only difference being counterparty credit risk, changes in the fair value of the underlying derivative contracts are not materially different and do not significantly impact the Company’s results of operations. The following table shows the amounts of non-hedging derivative financial instruments at December 31, 2022 and 2021. Asset derivatives Liability derivatives (Dollars in thousands) Notional or contractual amount Statement of Financial Condition classification Fair value Statement of Financial Condition classification Fair value Interest rate swap contracts $ 881,600 Other assets $ 24,838 Other liabilities $ 25,307 Loan commitments 2,638 Mortgages held for sale 67 N/A — Forward contracts - mortgage loan 3,750 Mortgages held for sale 24 N/A — Total - December 31, 2022 $ 887,988 $ 24,929 $ 25,307 Interest rate swap contracts $ 1,064,721 Other assets $ 20,735 Other liabilities $ 21,172 Loan commitments 15,086 Mortgages held for sale 452 N/A — Forward contracts - mortgage loan 22,000 N/A — Mortgages held for sale 11 Total - December 31, 2021 $ 1,101,807 $ 21,187 $ 21,183 The following table shows the amounts included on the Consolidated Statements of Income for non-hedging derivative financial instruments at December 31, 2022, 2021 and 2020. Gain (loss) (Dollars in thousands) Statement of Income classification 2022 2021 2020 Interest rate swap contracts Other expense $ (32) $ 591 $ (650) Interest rate swap contracts Other income 83 410 879 Loan commitments Mortgage banking (385) (1,035) 1,302 Forward contracts - mortgage loan Mortgage banking 35 279 (252) Total $ (299) $ 245 $ 1,279 The following table shows the offsetting of financial assets and derivative assets at December 31, 2022 and 2021. Gross Amounts Not Offset in the Statement of Financial Condition (Dollars in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Assets Presented in the Statement of Financial Condition Financial Instruments Cash Collateral Received Net Amount December 31, 2022 Interest rate swaps $ 24,838 $ — $ 24,838 $ — $ 25,295 $ (457) December 31, 2021 Interest rate swaps $ 24,436 $ 3,701 $ 20,735 $ — $ — $ 20,735 The following table shows the offsetting of financial liabilities and derivative liabilities at December 31, 2022 and 2021. Gross Amounts Not Offset in the Statement of Financial Condition (Dollars in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Liabilities Presented in the Statement of Financial Condition Financial Instruments Cash Collateral Pledged Net Amount December 31, 2022 Interest rate swaps $ 25,307 $ — $ 25,307 $ — $ — $ 25,307 Repurchase agreements 141,432 — 141,432 141,432 — — Total $ 166,739 $ — $ 166,739 $ 141,432 $ — $ 25,307 December 31, 2021 Interest rate swaps $ 24,873 $ 3,701 $ 21,172 $ 20,498 $ — $ 674 Repurchase agreements 194,727 — 194,727 194,727 — — Total $ 219,600 $ 3,701 $ 215,899 $ 215,225 $ — $ 674 If a default in performance of any obligation of a repurchase or derivative agreement occurs, each party will set-off property held, or loan indebtedness owing, in respect of transactions against obligations owing in respect of any other transactions. At December 31, 2022 and December 31, 2021, repurchase agreements had a remaining contractual maturity of $138.08 million and $191.47 million in overnight and $3.35 million and $3.26 million in up to 30 days, respectively and were collateralized by U.S. Treasury and Federal agencies securities.

Regulatory Matters

Regulatory Matters	12 Months Ended
Regulatory Matters	Dec. 31, 2022
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
Regulatory Matters	Regulatory Matters The Company is subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. Capital amounts and classification are subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of total capital, Tier 1 capital, and common equity Tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets. The Company believes that it meets all capital adequacy requirements to which it is subject. The most recent notification from the Federal bank regulators categorized 1st Source Bank, the largest of its subsidiaries, as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized” the Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that the Company believes will have changed the institution’s category. As discussed in Note 12, the capital securities held by the Capital Trusts qualify as Tier 1 capital under Federal Reserve Board guidelines. The following table shows the actual and required capital amounts and ratios for 1st Source Corporation and 1st Source Bank as of December 31, 2022 and 2021. Actual Minimum Capital Adequacy Minimum Capital Adequacy with Capital Buffer To Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio 2022 Total Capital (to Risk-Weighted Assets): 1st Source Corporation $ 1,137,984 16.10 % $ 565,314 8.00 % $ 741,975 10.50 % $ 706,643 10.00 % 1st Source Bank 1,060,292 15.01 565,119 8.00 741,718 10.50 706,398 10.00 Tier 1 Capital (to Risk-Weighted Assets): 1st Source Corporation 1,048,955 14.84 423,986 6.00 600,647 8.50 565,314 8.00 1st Source Bank 971,294 13.75 423,839 6.00 600,439 8.50 565,119 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): 1st Source Corporation 932,257 13.19 317,989 4.50 494,650 7.00 459,318 6.50 1st Source Bank 911,596 12.90 317,879 4.50 494,479 7.00 459,159 6.50 Tier 1 Capital (to Average Assets): 1st Source Corporation 1,048,955 12.63 332,287 4.00 N/A N/A 415,359 5.00 1st Source Bank 971,294 11.70 332,125 4.00 N/A N/A 415,156 5.00 2021 Total Capital (to Risk-Weighted Assets): 1st Source Corporation $ 1,034,605 16.76 % $ 493,751 8.00 % $ 648,048 10.50 % $ 617,189 10.00 % 1st Source Bank 969,228 15.71 493,412 8.00 647,603 10.50 616,765 10.00 Tier 1 Capital (to Risk-Weighted Assets): 1st Source Corporation 956,783 15.50 370,313 6.00 524,611 8.50 493,751 8.00 1st Source Bank 891,458 14.45 370,059 6.00 524,250 8.50 493,412 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): 1st Source Corporation 846,573 13.72 277,735 4.50 432,032 7.00 401,173 6.50 1st Source Bank 838,248 13.59 277,544 4.50 431,735 7.00 400,897 6.50 Tier 1 Capital (to Average Assets): 1st Source Corporation 956,783 11.89 321,925 4.00 N/A N/A 402,407 5.00 1st Source Bank 891,458 11.08 321,821 4.00 N/A N/A 402,277 5.00 The Bank was not required to maintain noninterest bearing cash balances with the Federal Reserve Bank as of December 31, 2022 and 2021. Dividends that may be paid by a subsidiary bank to the parent company are subject to certain legal and regulatory limitations and also may be affected by capital needs, as well as other factors. Due to the Company’s mortgage activities, 1st Source Bank is required to maintain minimum net worth capital requirements established by various governmental agencies. 1st Source Bank’s net worth requirements are governed by the Department of Housing and Urban Development and GNMA. As of December 31, 2022, 1st Source Bank met its minimum net worth capital requirements.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
Fair Value Measurements	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value MeasurementsThe Company determines the fair values of its financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of quoted prices and observable inputs and to minimize the use of unobservable inputs when measuring fair value. The Company elected fair value accounting for mortgages held for sale and for its best-efforts forward sales commitments. The Company economically hedges its mortgages held for sale at the time the interest rate locks are issued to the customers. The Company believes the election for mortgages held for sale will reduce certain timing differences and better match changes in the value of these assets with changes in the value of the derivatives or best-efforts forward sales commitments. At December 31, 2022 and 2021, all mortgages held for sale are carried at fair value. The following table shows the differences between fair value carrying amount of mortgages held for sale measured at fair value and the aggregate unpaid principal amount the Company is contractually entitled to receive at maturity on December 31, 2022 and 2021. (Dollars in thousands) Fair value carrying amount Aggregate unpaid principal Excess of fair value carrying amount over (under) unpaid principal December 31, 2022 Mortgages held for sale reported at fair value: Total Loans $ 3,914 $ 3,766 $ 148 (1) December 31, 2021 Mortgages held for sale reported at fair value: Total Loans $ 13,284 $ 12,456 $ 828 (1) (1) The excess of fair value carrying amount over (under) unpaid principal is included in mortgage banking income and includes changes in fair value at and subsequent to funding and gains and losses on the related loan commitment prior to funding. Financial Instruments on Recurring Basis: The following is a description of the valuation methodologies used for financial instruments measured at fair value on a recurring basis: Investment securities available-for-sale are valued primarily by a third-party pricing agent. Prices supplied by the independent pricing agent, as well as their pricing methodologies and assumptions, are reviewed by the Company for reasonableness and to ensure such prices are aligned with market levels. In general, the Company’s investment securities do not possess a complex structure that could introduce greater valuation risk. The portfolio mainly consists of traditional investments including U.S. Treasury and Federal agencies securities, Federal agency mortgage pass-through securities, and general obligation and revenue municipal bonds. Pricing for such instruments is fairly generic and is easily obtained. On a quarterly basis, prices supplied by the pricing agent are validated by comparison to prices obtained from other third party sources for a material portion of the portfolio. The valuation policy and procedures for Level 3 fair value measurements of available-for-sale debt securities are decided through collaboration between management of the Corporate Accounting and Funds Management departments. The changes in fair value measurement for Level 3 securities are analyzed on a periodic basis under a collaborative framework with the aforementioned departments. The methodology and variables used for input are derived from the combination of observable and unobservable inputs. The unobservable inputs are determined through internal assumptions that may vary from period to period due to external factors, such as market movement and credit rating adjustments. Both the market and income valuation approaches are implemented using the following types of inputs: • U.S. treasuries are priced using the market approach and utilizing live data feeds from active market exchanges for identical securities. • Government-sponsored agency debt securities and corporate bonds are primarily priced using available market information through processes such as benchmark curves, market valuations of like securities, sector groupings and matrix pricing. • Other government-sponsored agency securities, mortgage-backed securities and some of the actively traded REMICs and CMOs, are primarily priced using available market information including benchmark yields, prepayment speeds, spreads and volatility of similar securities. • State and political subdivisions are largely grouped by characteristics, i.e., geographical data and source of revenue in trade dissemination systems. Since some securities are not traded daily and due to other grouping limitations, active market quotes are often obtained using benchmarking for like securities. Local direct placement municipal securities, with very little market activity, are priced using an appropriate market yield curve which incorporates a credit spread assumption. Mortgages held for sale and the related loan commitments and forward contracts (economic hedges) are valued by a third party pricing agent. Prices supplied by the independent pricing agent, as well as their pricing methodologies, are reviewed by the Company for reasonableness and to ensure such prices are aligned with market values. On a quarterly basis, prices supplied by the pricing agent are validated by comparison to the prices obtained from other third party sources. Interest rate swap positions, both assets and liabilities, are valued by a third-party pricing agent using an income approach and utilizing models that use as their basis readily observable market parameters. This valuation process considers various factors including interest rate yield curves, time value and volatility factors. Validation of third-party agent valuations is accomplished by comparing those values to the Company’s swap counterparty valuations. Management believes an adjustment is required to “mid-market” valuations for derivatives tied to its performing loan portfolio to recognize the imprecision and related exposure inherent in the process of estimating expected credit losses as well as velocity of deterioration evident with systemic risks embedded in these portfolios. Any change in the mid-market derivative valuation adjustment will be recognized immediately through the Consolidated Statements of Income. The following table shows the balance of assets and liabilities measured at fair value on a recurring basis. (Dollars in thousands) Level 1 Level 2 Level 3 Total December 31, 2022 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 573,679 $ 424,919 $ — $ 998,598 U.S. States and political subdivisions securities — 121,298 1,464 122,762 Mortgage-backed securities - Federal agencies — 637,058 — 637,058 Corporate debt securities — 16,131 — 16,131 Foreign government and other securities — 579 — 579 Total debt securities available-for-sale 573,679 1,199,985 1,464 1,775,128 Mortgages held for sale — 3,914 — 3,914 Accrued income and other assets (interest rate swap agreements) — 24,838 — 24,838 Total $ 573,679 $ 1,228,737 $ 1,464 $ 1,803,880 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 25,307 $ — $ 25,307 Total $ — $ 25,307 $ — $ 25,307 December 31, 2021 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 561,950 $ 522,056 $ — $ 1,084,006 U.S. States and political subdivisions securities — 93,852 1,849 95,701 Mortgage-backed securities - Federal agencies — 659,727 — 659,727 Corporate debt securities — 23,009 — 23,009 Foreign government and other securities — 598 — 598 Total debt securities available-for-sale 561,950 1,299,242 1,849 1,863,041 Mortgages held for sale — 13,284 — 13,284 Accrued income and other assets (interest rate swap agreements) — 20,735 — 20,735 Total $ 561,950 $ 1,333,261 $ 1,849 $ 1,897,060 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 21,172 $ — $ 21,172 Total $ — $ 21,172 $ — $ 21,172 The following table shows the changes in Level 3 assets and liabilities measured at fair value on a recurring basis. (Dollars in thousands) U.S. States and political subdivisions securities Beginning balance January 1, 2022 $ 1,849 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (135) Purchases 3,000 Issuances — Sales — Settlements — Maturities (3,250) Transfers into Level 3 — Transfers out of Level 3 — Ending balance December 31, 2022 $ 1,464 Beginning balance January 1, 2021 $ 2,152 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (15) Purchases — Issuances — Sales — Settlements — Maturities (288) Transfers into Level 3 — Transfers out of Level 3 — Ending balance December 31, 2021 $ 1,849 There were no gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at December 31, 2022 or 2021. The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis. (Dollars in thousands) Fair value Valuation Methodology Unobservable Inputs Range of Inputs Weighted Average December 31, 2022 Debt securities available-for-sale Direct placement municipal securities $ 1,464 Discounted cash flows Credit spread assumption 0.22% - 4.09% 3.49 % December 31, 2021 Debt securities available-for-sale Direct placement municipal securities $ 1,849 Discounted cash flows Credit spread assumption 0.04% - 2.31% 1.58 % Financial Instruments on Non-recurring Basis: The Company may be required, from time to time, to measure certain other financial assets at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from application of lower of cost or market accounting or impairment charges of individual assets. The Credit Policy Committee (CPC), a management committee, is responsible for overseeing the valuation processes and procedures for Level 3 measurements of impaired loans, other real estate and repossessions. The CPC reviews these assets on a quarterly basis to determine the accuracy of the observable inputs, generally third-party appraisals, auction values, values derived from trade publications and data submitted by the borrower, and the appropriateness of the unobservable inputs, generally discounts due to current market conditions and collection issues. The CPC establishes discounts based on asset type and valuation source; deviations from the standard are documented. The discounts are reviewed periodically, annually at a minimum, to determine they remain appropriate. Consideration is given to current trends in market values for the asset categories and gain and losses on sales of similar assets. The Loan and Funds Management Committee of the Board of Directors is responsible for overseeing the CPC. Discounts vary depending on the nature of the assets and the source of value. Aircraft are generally valued using quarterly trade publications adjusted for engine time, condition, maintenance programs, discounted by 10%. Likewise, autos are valued using current auction values, discounted by 10%; medium and heavy duty trucks are valued using trade publications and auction values, discounted by 15%. Construction equipment is generally valued using trade publications and auction values, discounted by 20%. Real estate is valued based on appraisals or evaluations, discounted by 20% at a minimum with higher discounts for property in poor condition or property with characteristics which may make it more difficult to market. Commercial loans subject to borrowing base certificates are generally discounted by 20% for receivables and 40% - 75% for inventory with higher discounts when monthly borrowing base certificates are not required or received. Collateral-dependent impaired loans and related write-downs are based on the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are reviewed quarterly and estimated using customized discounting criteria, appraisals and dealer and trade magazine quotes which are used in a market valuation approach. In accordance with fair value measurements, only impaired loans for which an allowance for loan loss has been established based on the fair value of collateral require classification in the fair value hierarchy. As a result, only a portion of the Company’s impaired loans are classified in the fair value hierarchy. The Company has established MSRs valuation policies and procedures based on industry standards and to ensure valuation methodologies are consistent and verifiable. MSRs and related adjustments to fair value result from application of lower of cost or fair value accounting. For purposes of impairment, MSRs are stratified based on the predominant risk characteristics of the underlying servicing, principally by loan type. The fair value of each tranche of the servicing portfolio is estimated by calculating the present value of estimated future net servicing cash flows, taking into consideration actual and expected mortgage loan prepayment rates, discount rates, servicing costs, and other economic factors. Prepayment rates and discount rates are derived through a third-party pricing agent. Changes in the most significant inputs, including prepayment rates and discount rates, are compared to the changes in the fair value measurements and appropriate resolution is made. A fair value analysis is also obtained from an independent third-party agent and compared to the internal valuation for reasonableness. MSRs do not trade in an active, open market with readily observable prices and though sales of MSRs do occur, precise terms and conditions typically are not readily available and the characteristics of the Company’s servicing portfolio may differ from those of any servicing portfolios that do trade. Other real estate is based on the fair value of the underlying collateral less expected selling costs. Collateral values are estimated primarily using appraisals and reflect a market value approach. Fair values are reviewed quarterly and new appraisals are obtained annually. Repossessions are similarly valued. For assets measured at fair value on a nonrecurring basis the following represents impairment charges (recoveries) recognized on these assets during the year ended December 31, 2022 and 2021, respectively: collateral-dependent impaired loans - $0.00 million and $2.76 million; MSRs - $0.00 million and $(0.81) million; repossessions - $0.00 million and $0.27 million, and other real estate - $0.00 million and $0.06 million. The following table shows the carrying value of assets measured at fair value on a non-recurring basis. (Dollars in thousands) Level 1 Level 2 Level 3 Total December 31, 2022 Collateral-dependent impaired loans $ — $ — $ — $ — Accrued income and other assets (mortgage servicing rights) — — 4,137 4,137 Accrued income and other assets (repossessions) — — 327 327 Accrued income and other assets (other real estate) — — 104 104 Total $ — $ — $ 4,568 $ 4,568 December 31, 2021 Collateral-dependent impaired loans $ — $ — $ 571 $ 571 Accrued income and other assets (mortgage servicing rights) — — 4,671 4,671 Accrued income and other assets (repossessions) — — 861 861 Accrued income and other assets (other real estate) — — — — Total $ — $ — $ 6,103 $ 6,103 The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a non-recurring basis. (Dollars in thousands) Carrying Value Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Weighted Average December 31, 2022 Collateral-dependent impaired loans $ — $ — Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 0% - 0% 0 % Mortgage servicing rights 4,137 8,007 Discounted cash flows Constant prepayment rate (CPR) 7.6% - 9.6% 8.2 % Discount rate 11.4% - 14.2% 11.5 % Repossessions 327 370 Appraisals, trade publications and auction values Discount for lack of marketability 2% - 9% 7 % Other real estate 104 104 Appraisals Discount for lack of marketability 0% - 0% 0 % December 31, 2021 Collateral-dependent impaired loans $ 571 $ 571 Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 20% - 90% 43.1 % Mortgage servicing rights 4,671 5,640 Discounted cash flows Constant prepayment rate (CPR) 11.8% - 18.5% 16.4 % Discount rate 8.6% - 11.5% 8.8 % Repossessions 861 942 Appraisals, trade publications and auction values Discount for lack of marketability 0% - 21% 2 % Other real estate — — Appraisals Discount for lack of marketability 0% - 0% 0 % GAAP requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring or non-recurring basis. The following table shows the fair values of the Company’s financial instruments. (Dollars in thousands) Carrying or Contract Value Fair Value Level 1 Level 2 Level 3 December 31, 2022 Assets: Cash and due from banks $ 84,703 $ 84,703 $ 84,703 $ — $ — Federal funds sold and interest bearing deposits with other banks 38,094 38,094 38,094 — — Investment securities, available-for-sale 1,775,128 1,775,128 573,679 1,199,985 1,464 Other investments 25,293 25,293 25,293 — — Mortgages held for sale 3,914 3,914 — 3,914 — Loans and leases, net of allowance for loan and lease losses 5,871,894 5,712,972 — — 5,712,972 Mortgage servicing rights 4,137 8,007 — — 8,007 Accrued interest receivable 24,747 24,747 — 24,747 — Interest rate swaps 24,838 24,838 — 24,838 — Liabilities: Deposits $ 6,928,265 $ 6,909,392 $ 5,787,806 $ 1,121,586 $ — Short-term borrowings 215,529 215,529 139,079 76,450 — Long-term debt and mandatorily redeemable securities 46,555 45,111 — 45,111 — Subordinated notes 58,764 51,398 — 51,398 — Accrued interest payable 5,999 5,999 — 5,999 — Interest rate swaps 25,307 25,307 — 25,307 — Off-balance-sheet instruments * — 108 — 108 — December 31, 2021 Assets: Cash and due from banks $ 54,420 $ 54,420 $ 54,420 $ — $ — Federal funds sold and interest bearing deposits with other banks 470,767 470,767 470,767 — — Investment securities, available-for-sale 1,863,041 1,863,041 561,950 1,299,242 1,849 Other investments 27,189 27,189 27,189 — — Mortgages held for sale 13,284 13,284 — 13,284 — Loans and leases, net of allowance for loan and lease losses 5,218,722 5,269,551 — — 5,269,551 Mortgage servicing rights 4,671 5,640 — — 5,640 Accrued interest receivable 17,760 17,760 — 17,760 — Interest rate swaps 20,735 20,735 — 20,735 — Liabilities: Deposits $ 6,679,065 $ 6,680,163 $ 5,794,928 $ 885,235 $ — Short-term borrowings 200,027 200,027 192,801 7,226 — Long-term debt and mandatorily redeemable securities 71,251 71,305 — 71,305 — Subordinated notes 58,764 58,553 — 58,553 — Accrued interest payable 1,885 1,885 — 1,885 — Interest rate swaps 21,172 21,172 — 21,172 — Off-balance-sheet instruments * — 364 — 364 — * Represents estimated cash outflows required to currently settle the obligations at current market rates. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. These estimates are subjective in nature and require considerable judgment to interpret market data. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange, nor are they intended to represent the fair value of the Company as a whole. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The fair value estimates presented herein are based on pertinent information available to management as of the respective balance sheet date. Although the Company is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein.

1st Source Corporation (Parent

1st Source Corporation (Parent Company Only) Financial Information	12 Months Ended
	Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract]
1st Source Corporation (Parent Company Only) Financial Information	1st Source Corporation (Parent Company Only) Financial Information STATEMENTS OF FINANCIAL CONDITION December 31 (Dollars in thousands) 2022 2021 ASSETS Cash and cash equivalents $ 104,678 $ 94,543 Short-term investments with bank subsidiary 500 500 Investments in: Bank subsidiaries 842,707 907,238 Non-bank subsidiaries 1 1 Right of use assets 14,730 16,106 Other assets 6,234 6,877 Total assets $ 968,850 $ 1,025,265 LIABILITIES AND SHAREHOLDERS’ EQUITY Commercial paper $ 3,096 $ 3,967 Long-term debt and mandatorily redeemable securities 25,240 27,102 Subordinated notes 58,764 58,764 Operating lease liability 13,509 15,463 Other liabilities 4,173 3,714 Total liabilities 104,782 109,010 Total shareholders’ equity 864,068 916,255 Total liabilities and shareholders’ equity $ 968,850 $ 1,025,265 STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Year Ended December 31 (Dollars in thousands) 2022 2021 2020 Income: Dividends from bank subsidiary $ 49,588 $ 46,207 $ 46,207 Rental income from (reimbursements to) subsidiaries 1,740 1,873 (908) Other 148 146 293 Investment securities and other investment gains (losses) 353 342 (44) Total income 51,829 48,568 45,548 Expenses: Interest on subordinated notes 3,550 3,267 3,367 Interest on long-term debt and mandatorily redeemable securities (341) 1,799 2,151 Interest on commercial paper and other short-term borrowings 1 3 11 Occupancy 1,625 1,722 1,816 Other 890 711 667 Total expenses 5,725 7,502 8,012 Income before income tax benefit and equity in undistributed income of subsidiaries 46,104 41,066 37,536 Income tax benefit 1,099 998 1,747 Income before equity in undistributed income of subsidiaries 47,203 42,064 39,283 Equity in undistributed income of subsidiaries: Bank subsidiaries 73,329 76,493 42,178 Net income $ 120,532 $ 118,557 $ 81,461 Comprehensive (loss) income $ (17,297) $ 90,325 $ 94,660 STATEMENTS OF CASH FLOWS Year Ended December 31 (Dollars in thousands) 2022 2021 2020 Operating activities: Net income $ 120,532 $ 118,557 $ 81,461 Adjustments to reconcile net income to net cash provided by operating activities: Equity (undistributed) distributed in excess of income of subsidiaries (73,329) (76,493) (42,178) Depreciation of premises and equipment — 1 2 Amortization of right of use assets 1,376 1,346 1,107 Stock-based compensation 120 102 94 Realized/unrealized investment securities and other investment (gains) losses (353) (342) 44 Other (702) 1,556 (103) Net change in operating activities 47,644 44,727 40,427 Investing activities: Net change in partnership investments 102 (74) (182) Net change in investing activities 102 (74) (182) Financing activities: Net change in commercial paper (871) (800) 774 Proceeds from issuance of long-term debt and mandatorily redeemable securities 1,862 1,738 1,640 Payments on long-term debt and mandatorily redeemable securities (2,708) (2,427) (2,268) Stock issued under stock purchase plans 252 90 39 Net proceeds from issuance of treasury stock 2,792 2,523 1,706 Acquisition of treasury stock (6,836) (33,136) (6,415) Cash dividends paid on common stock (32,102) (31,340) (29,764) Net change in financing activities (37,611) (63,352) (34,288) Net change in cash and cash equivalents 10,135 (18,699) 5,957 Cash and cash equivalents, beginning of year 94,543 113,242 107,285 Cash and cash equivalents, end of year $ 104,678 $ 94,543 $ 113,242

Accounting Policies (Policies)

Accounting Policies (Policies)	12 Months Ended
Accounting Policies (Policies)	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation — The financial statements consolidate 1st Source, its subsidiaries (principally the Bank) and any variable interest entities (“VIEs”) for which the Company has concluded it has significant involvement in and the ability to direct the activities that impact the entity’s economic performance. All significant intercompany balances and transactions have been eliminated. For purposes of the parent company only financial information presented in Note 22, investments in subsidiaries are carried at equity in the underlying net assets.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements — Financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) require the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Business Combinations	Business Combinations — Business combinations are accounted for under the purchase method of accounting. Under the purchase method, assets and liabilities of the business acquired are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired recorded as goodwill. Results of operations of the acquired business are included in the income statement from the date of acquisition.
Cash Flows	Cash Flows — For purposes of the consolidated and parent company only statements of cash flows, the Company considers cash and due from banks, federal funds sold and interest bearing deposits with other banks with original maturities of three months or less as cash and cash equivalents.
Securities	Securities — Securities that the Company has the ability and positive intent to hold to maturity are classified as investment securities held-to-maturity. Held-to-maturity investment securities, when present, are carried at amortized cost. As of December 31, 2022 and 2021, the Company held no securities classified as held-to-maturity. Securities that may be sold in response to, or in anticipation of, changes in interest rates and resulting prepayment risk, or for other factors, are classified as available-for-sale and are carried at fair value. Unrealized gains and losses on debt securities are reported, net of applicable taxes, as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity. Unrealized gains and losses on equity securities are reflected, net of applicable taxes, in earnings. For available-for-sale securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of these criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value in Other Income on the Consolidated Statements of Income. For debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, nature of the security, the underlying collateral, and the financial condition of the issuer, among other factors. If this assessment indicates a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for available-for-sale securities losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for available-for-sale securities losses is recognized in other comprehensive income. Changes in the allowance for available-for-sale securities are recorded as a component of credit loss expense. Losses are charged against the allowance for available-for-sale securities losses when management believes the uncollectibility of an available-for-sale security is confirmed or when either criteria regarding intent or requirement to sell is met. Debt and equity securities that are purchased and held principally for the purpose of selling them in the near term are classified as trading account securities and are carried at fair value with unrealized gains and losses reported in earnings. Realized gains and losses on the sales of all securities are reported in earnings and computed using the specific identification cost basis.
Loans and Leases	Loans and Leases — Loans are stated at the principal amount outstanding, net of unamortized deferred loan origination fees and costs and net of unearned income. Interest income is accrued as earned based on unpaid principal balances. Origination fees and direct loan and lease origination costs are deferred, and the net amount amortized to interest income over the estimated life of the related loan or lease. Loan commitment fees are deferred and amortized into other income over the commitment period. Direct financing leases are carried at the aggregate of lease payments plus estimated residual value of the leased property, net of unamortized deferred lease origination fees and costs and unearned income. Only those costs incurred as a direct result of closing a lease transaction are capitalized and all initial direct costs are expensed immediately. Interest income on direct financing leases is recognized over the term of the lease to achieve a constant periodic rate of return on the outstanding investment. Accrued interest is included in Accrued Income and Other Assets on the Consolidated Statements of Financial Condition. The accrual of interest on loans and leases is discontinued when a loan or lease becomes contractually delinquent for 90 days, or when an individual analysis of a borrower’s credit worthiness indicates a credit should be placed on nonperforming status, except for residential mortgage loans and consumer loans that are well secured and in the process of collection. Residential mortgage loans are placed on nonaccrual at the time the loan is placed in foreclosure. When interest accruals are discontinued, interest credited to income in the current year is reversed and interest accrued in the prior year is charged to the allowance for loan and lease losses. However, in some cases, the Company may elect to continue the accrual of interest when the net realizable value of collateral is sufficient to cover the principal and accrued interest. When a loan or lease is classified as nonaccrual and the future collectability of the recorded loan or lease balance is doubtful, collections on interest and principal are applied as a reduction to principal outstanding. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured, which is typically evidenced by a sustained repayment performance of at least six months. Loans and leases that have been modified and economic concessions have been granted to borrowers who have experienced financial difficulties are considered a troubled debt restructuring (TDR). These concessions typically result from the Company’s loss mitigation activities and may include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months. When the Company modifies loans and leases in a TDR, it evaluates any possible impairment based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan or lease agreement, or uses the current fair value of the collateral, less selling costs for collateral dependent loans. If the Company determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance for loan and lease losses estimate or a charge-off to the allowance for loan and lease losses. In periods subsequent to modification, the Company evaluates all TDRs, including those that have payment defaults, for possible impairment and recognizes impairment through the allowance for loan and lease losses.
Mortgage Banking Activities	Mortgage Banking Activities — Loans held for sale are composed of performing one-to-four family residential mortgage loans originated for resale. Mortgage loans originated with the intent to sell are carried at fair value. The Company recognizes the rights to service mortgage loans for others as separate assets, whether the servicing rights are acquired through a separate purchase or through the sale of originated loans with servicing rights retained. The Company allocates a portion of the total proceeds of a mortgage loan to servicing rights based on the relative fair value. These assets are amortized as reductions of mortgage servicing fee income over the estimated servicing period in proportion to the estimated servicing income to be received. The balance of MSRs is located in Accrued Income and Other Assets on the Consolidated Statements of Financial Condition and the gains and losses on the sale of MSRs are recognized in Noninterest Income on the Consolidated Statements of Income in the period in which such rights are sold. MSRs are evaluated for impairment at each reporting date. For purposes of impairment measurement, MSRs are stratified based on the predominant risk characteristics of the underlying servicing, principally by loan type. If temporary impairment exists within a tranche, a valuation allowance is established through a charge to income equal to the amount by which the carrying value exceeds the fair value. If it is later determined all or a portion of the temporary impairment no longer exists for a particular tranche, the valuation allowance is reduced through a recovery of income. MSRs are also reviewed for permanent impairment. Permanent impairment exists when recoverability of a recorded valuation allowance is determined to be remote considering historical and projected interest rates, prepayments, and loan pay-off activity. When this situation occurs, the unrecoverable portion of the valuation allowance is applied as a direct write-down to the carrying value of the MSRs. Unlike a valuation allowance, a direct write-down permanently reduces the carrying value of the MSRs and the valuation allowance, precluding subsequent recoveries. As part of mortgage banking operations, the Company enters into commitments to originate loans whereby the interest rate on these loans is determined prior to funding (“rate lock commitments”). Similar to loans held for sale, the fair value of rate lock commitments is subject to change primarily due to changes in interest rates. Under the Company’s risk management policy, these fair values are hedged primarily by selling forward contracts on agency securities at the time the interest rate locks are issued to the customers. The rate lock commitments on mortgage loans intended to be sold and the related hedging instruments are recorded at fair value with changes in fair value recorded in current earnings.
Allowance for credit losses	Allowance for Credit Losses: Loans and leases — Accrued interest on loans and leases is excluded from the calculation of the allowance for credit losses due to the Company’s charge-off policy to reverse accrued interest on nonperforming loans against interest income in a timely manner. Expected credit losses on net investments in leases, including any unguaranteed residual asset, are included in the allowance for loan and lease losses. Allowance for Loan and Lease Losses — Effective January 1, 2020, the allowance for credit losses is established for current expected credit losses on the Company’s loan and lease portfolio. Prior to January 1, 2020, the allowance was established based on an incurred loss model. It is the Company’s policy to maintain the allowance at a level believed to be adequate to absorb estimated credit losses within its portfolio of loans and leases. The determination of the allowance requires significant judgment to estimate credit losses measured on a collective pool basis when similar risk characteristics exist, and for loans evaluated individually. In determining the allowance, the Company estimates expected future losses for the loan’s entire contractual term adjusted for expected payments when appropriate. The allowance estimate considers relevant available information, from internal and external sources relating to the historical loss experience, current conditions, and reasonable and supportable forecasts for the Company’s outstanding loan and lease balances. The allowance is an estimation that reflects management’s evaluation of expected losses related to the Company’s financial assets measured at amortized cost. To ensure that the allowance is maintained at an adequate level, a detailed analysis is performed on a quarterly basis and an appropriate provision is made to adjust the allowance. The Company categorizes its loan portfolios into nine segments based on similar risk characteristics. Loans within each segment are collectively evaluated using either: 1) a cohort cumulative loss rate methodology (“cohort”) or, 2) the probability of default (“PD”)/loss given default (“LGD”) methodology (PD/LGD). The cohort methodology is applied to ungraded portfolios, portfolios where receipt of financial statements is generally less timely, and portfolios where there are numerous small dollar accounts that are credit scored. Loans are broken out by internal risk rating (loan grade) bands: 1-6 and 7-12 (special attention). For ungraded portfolios, there is only one pool. The cohort methodology has a steady state assumption; qualitative adjustments capture any differences that may exist between the current and historical conditions. The PD/LGD methodology is applied to graded portfolios due to the quantitative nature of the Company’s risk rating system and is consistent with the Company’s definition of risk, downgrading a credit where and when appropriate and recognizing losses in a timely manner. Loans are broken out by risk rating (loan grade) bands: 1-3, 4-6, 7-8, and 9-12. The amortized cost loan balances (rather than counts) are used for determining the transition and default probabilities. The Company uses risk rating bands as the active state to track the movement of loans through the transition matrix. The transition frequency is quarterly. Default is defined as the point at which a loan is placed on non-accrual status. In addition, a charge-off is assumed to be a default (i.e. a loan goes from accruing to charge-off, without ever being on non-accrual status). The PD is the cumulative probability of default estimated by use of a transition matrix (based on a Markov transition matrix methodology) which captures the migration of a loan from one risk rating band to another. The LGD is the ratio of loss relative to the exposure (amortized cost) at default. The current expected credit loss methodology has a factor for reasonable and supportable forecasts. Generally, reasonable and supportable forecasts are for two years or less and have a reversion period of a similar duration, reverting expected credit losses to a level that is consistent with our historical loss experience. Forecast adjustments are added via basis points for the cohort methodology. For the PD/LGD methodology, adjustments to the probability of default factor are applied through forecast adjustments to the PD factor used as the baseline transition matrix runout, thus impacting the historical loss ratio. The Company developed its reasonable and supportable forecasts using relevant data including, but not limited to, growth in gross domestic product, unemployment rates, housing market trends, commodity prices, inflation, and other factors associated with credit losses on the financial statements. For both the cohort and the PD/LGD methodologies, the Company uses qualitative adjustments to capture differences that may exist between the current and historical conditions. Qualitative factors include but are not limited to current market risk assessment by industry, recent loss experience in particular segments of the portfolios, movement in equipment values collateralizing specialized industry portfolios, concentrations of credit risk, delinquencies, trends in volume, experience and depth of relationship managers and division management, and the effects of changes in lending policies and practices, including changes in quality of the loan and lease origination, servicing and risk management process. Loans which exhibit different risk characteristics than the pool are evaluated individually for impairment. Loans evaluated individually are not included in the collective evaluation. These loans can be identified from a variety of sources including delinquency, non-accrual status and troubled debt restructurings (TDRs). The scope may include accruing loans that exhibit risk characteristics which differ from their pool or non-performing loans with risk characteristics not similar to other special attention loans in their pool. Individual reserves are determined based on an analysis of the loan’s expected future cash flows, the loan’s observable market value, or the fair value of the collateral less costs to sell. When foreclosure is probable, impairment is determined based on the collateral’s fair value less costs to sell. As a practical expedient, fair value less costs to sell may be used when developing the estimate of credit losses. Similarly, for a going concern analysis, a discounted cash method may be used. Liability for Credit Losses on Unfunded Loan Commitments — The liability for credit losses on commitments to originate loans and standby letters of credit is included in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition. Expected credit losses are estimated over the contractual period in which the Company is exposed to credit risk via a contractual obligation unless the obligation is unconditionally cancellable by the Company. The liability for credit losses on unfunded loan commitments is adjusted as a provision for credit losses in Other Noninterest Expense on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated useful life. Because business processes and credit risks associated with unfunded credit commitments are essentially the same as for loans, the Company utilizes similar processes to estimate its liability for unfunded credit commitments.
Equipment Owned Under Operating Leases	Equipment Owned Under Operating Leases — As a lessor, the Company finances various types of construction equipment, medium and heavy duty trucks, automobiles and other equipment under leases classified as operating leases. The equipment underlying the operating leases is reported at cost, net of accumulated depreciation, on the Consolidated Statements of Financial Condition. These operating lease arrangements require the lessee to make a fixed monthly rental payment over a specified lease term generally ranging from three years to seven years. Revenue consists of the contractual lease payments and is recognized on a straight-line basis over the lease term and reported in Noninterest Income on the Consolidated Statements of Income. Leased assets are depreciated on a straight-line method over the lease term to the estimate of the equipment’s fair market value at lease termination, also referred to as “residual” value. The depreciation of these operating lease assets is reported in Noninterest Expense on the Consolidated Statements of Income. For automobile leases, fair value is based upon published industry market guides. For other equipment leases, fair value may be based upon observable market prices, third-party valuations, or prices received on sales of similar assets at the end of the lease term. These residual values are reviewed annually to ensure the recorded amount does not exceed the fair market value at the lease termination. At the end of the lease, the operating lease asset is either purchased by the lessee or returned to the Company. The Company is responsible for the payment of personal property taxes which is reported in Other Expense on the Consolidated Statements of Income. The lessee is responsible for reimbursing the Company for personal property taxes which is reported in Other Income on the Consolidated Statements of Income. The Company excludes sales taxes and other similar taxes from being reported as lease revenue with an associated expense.
Lease Commitments	Lease Commitments — The Company leases certain banking center locations, office space, land and billboards. In determining whether a contract contains a lease, the Company examines the contract to ensure an asset was specifically identified and that the Company has control of use over the asset. To determine whether a lease is classified as operating or finance, the Company performs an economic life test on all building leases with greater than a twenty years term. Further, the Company performs a fair value test to identify any leases that have a present value of future lease payments over the lease term that is greater than 90% of the fair value of the building. The Company only capitalizes leases with an initial lease liability of $2,000 or greater. At lease inception, the Company determines the lease term by adding together the minimum lease term and all optional renewal periods that it is reasonably certain to renew. The Company determines this on each lease by considering all relevant contract-based, asset-based, market-based, and entity-based economic factors. Generally, the exercise of lease renewal options is at the Company’s sole discretion. The lease term is used to determine whether a lease is operating or finance and is used to calculate straight-line rent expense. Additionally, the depreciable life of leasehold improvements is limited by the expected lease term. Operating lease rentals are expensed on a straight-line basis over the life of the lease beginning on the date the Company takes possession of the property. Rent expense and variable lease costs are included in Net Occupancy Expense on the Consolidated Statements of Income. Included in variable lease costs are leases with rent escalations based on recent financial indices, such as the Consumer Price Index, where the Company initially measures lease payments using the index on the commencement date and records future changes in rent payments resulting from changes in the index to variable costs in the period the changes occur. Certain leases require the Company to pay common area maintenance, real estate taxes, insurance and other operating expenses associated with the leases premises. These expenses are classified in Net Occupancy Expense on the Consolidated Statements of Income, consistent with similar costs for owned locations. There are no residual value guarantees, restrictions or covenants imposed by leases. The Company accounts for lease and nonlease components together as a single lease component by class of underlying asset. Operating lease obligations with an initial term longer than 12 months are recorded with a right of use asset and a lease liability on the Consolidated Statements of Financial Condition. The discount rate used in determining the lease liability and related right of use asset is based upon what would be obtained by the Company for similar loans as an incremental rate as of the date of origination or renewal.
Other Real Estate	Other Real Estate — Other real estate acquired through partial or total satisfaction of nonperforming loans is included in Other Assets on the Consolidated Statements of Financial Condition and recorded at fair value less anticipated selling costs based upon the property’s appraised value at the date of transfer, with any difference between the fair value of the property less cost to sell, and the carrying value of the loan charged to the allowance for loan and lease losses or other income, if a positive adjustment. Subsequent fair value write-downs or write-ups, to the extent of previous write-downs, property maintenance costs, and gains or losses recognized upon the sale of other real estate are recognized in Noninterest Expense on the Consolidated Statements of Income. Gains or losses resulting from the sale of other real estate are recognized on the date of sale. As of December 31, 2022 and 2021, other real estate had carrying values of $0.10 million and $0.00 million, respectively, and is included in Other Assets on the Consolidated Statements of Financial Condition.
Repossessed Assets	Repossessed Assets — Repossessed assets may include fixtures and equipment, inventory and receivables, aircraft, construction equipment, and vehicles acquired from business banking and specialty finance activities. Repossessed assets are included in Other Assets on the Consolidated Statements of Financial Condition at fair value of the equipment or vehicle less estimated selling costs. At the time of repossession, the recorded amount of the loan or lease is written down to the fair value of the equipment or vehicle by a charge to the allowance for loan and lease losses or other income, if a positive adjustment. Subsequent fair value write-downs or write-ups, to the extent of previous write-downs, equipment maintenance costs, and gains or losses recognized upon the sale of repossessions are recognized in Noninterest Expense on the Consolidated Statements of Income. Gains or losses resulting from the sale of repossessed assets are recognized on the date of sale. Repossessed assets totaled $0.33 million and $0.86 million, as of December 31, 2022 and 2021, respectively, and are included in Other Assets on the Consolidated Statements of Financial Condition.
Premises and Equipment	Premises and Equipment — Premises and equipment are stated at cost, less accumulated depreciation and amortization. The provision for depreciation is computed by the straight-line method, primarily with useful lives ranging from three years to 31.5 years. Maintenance and repairs are charged to expense as incurred, while improvements, which extend the useful life, are capitalized and depreciated over the estimated remaining life.
Goodwill and Intangibles	Goodwill and Intangibles — Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. Other intangible assets represent purchased assets that also lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. Goodwill is reviewed for impairment at least annually or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the carrying amount. Goodwill is allocated into two reporting units. Fair value for each reporting unit is estimated using stock price multiples or earnings before interest, tax, depreciation and amortization (EBITDA) multiples. Intangible assets that have finite lives are amortized over their estimated useful lives and are subject to impairment testing. All of the Company’s other intangible assets have finite lives and are amortized on a straight-line basis over varying periods not exceeding twenty-five years. The Company has historically evaluated goodwill for impairment during the fourth quarter of each year, with financial data as of September 30. During the first quarter of 2021, management determined that the deterioration in general economic conditions as a result of the COVID-19 pandemic and responses thereto represented a triggering event prompting an evaluation of goodwill impairment. The Company performed impairment analyses in each quarter of 2021. In 2022, management determined conditions no longer represented a triggering event requiring quarterly analyses and returned to its historical practice of evaluating goodwill during the fourth quarter of the year. Based on the analyses performed each quarter of 2021 and the fourth quarter of 2022, the Company determined that goodwill was not impaired.
Partnership Investments	Partnership Investments — The Company accounts for its investments in partnerships for which it owns less than fifty percent and has the ability to exercise significant influence over the partnership on the equity method. The Company accounts for its investments in partnerships for which it does not have the ability to exercise significant influence at fair value less impairment, if any, or cost less any impairment if the fair value is not readily determinable. The Company has elected to use the practical expedient to estimate fair value of an investment in an investment company using the net asset value of its partnership interest. The Company uses the hypothetical liquidation book value (HLBV) method for equity investments when the liquidation rights and priorities as defined by an equity investment agreement differ from what is reflected by the underlying percentage ownership interests. The HLBV method is commonly applied to equity investments in the renewable energy industry, where the economic benefits corresponding to an equity investment may vary at different points in time and/or are not directly linked to an investor’s ownership percentage. A calculation is prepared at each balance sheet date to determine the amount that the Company would receive if an equity investment entity were to liquidate all of its assets (as valued in accordance with GAAP) and distribute that cash to the investors based on the contractually defined liquidation priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is 1st Source’s share of the earnings or losses from the equity investment for the period. Investments in partnerships are included in Other Assets on the Consolidated Statements of Financial Condition. The balances as of December 31, 2022 and 2021 were $137.15 million and $95.05 million, respectively.
Short-Term Borrowings	Short-Term Borrowings — Short-term borrowings consist of Federal funds purchased, securities sold under agreements to repurchase, commercial paper, Federal Home Loan Bank notes, and borrowings from non-affiliated banks. Federal funds purchased, securities sold under agreements to repurchase, and other short-term borrowings mature within one day to 365 days of the transaction date. Commercial paper matures within seven days to 270 days. Other short-term borrowings on the Consolidated Statements of Financial Condition include the Company’s liability related to mortgage loans available for repurchase under GNMA optional repurchase programs. Securities purchased under agreements to resell and securities sold under agreements to repurchase are treated as collateralized financing transactions and are recorded at the amounts at which the securities were acquired or sold plus accrued interest. The fair value of collateral either received from or provided to a third-party is continually monitored and additional collateral obtained or requested to be returned to the Company as deemed appropriate.
Revenue Recognition	Revenue Recognition — The Company recognizes revenues as they are earned based on contractual terms, as transactions occur, or as services are provided and collectability is reasonably assured. The Company’s principal source of revenue is interest income from loans and leases and investment securities. The Company also earns noninterest income from various banking and financial services offered primarily through 1st Source Bank and its subsidiaries. Interest Income — The largest source of revenue for the Company is interest income which is primarily recognized on an accrual basis according to nondiscretionary formulas in written contracts, such as loan and lease agreements or investment securities contracts. Noninterest Income — The Company earns noninterest income through a variety of financial and transaction services provided to corporate and consumer clients such as trust and wealth advisory, deposit account, debit card, mortgage banking, insurance, and equipment rental services. Revenue is recorded for noninterest income based on the contractual terms for the service or transaction performed. In certain circumstances, noninterest income is reported net of associated expenses.
Trust and Wealth Advisory Fees	Trust and Wealth Advisory Fees — Trust and wealth advisory fees are recognized on the accrual basis.
Income Taxes	Income Taxes — 1st Source and its subsidiaries file a consolidated Federal income tax return. The provision for income taxes is based upon income in the consolidated financial statements, rather than amounts reported on the income tax return. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. Although realization is not assured, the Company believes it is more likely than not that all of the deferred tax assets will be realized. The Company uses the deferral method of accounting on investments that generate investment tax credits. Under this method, the investment tax credits are recognized as a reduction to the related asset. The expense on certain qualified affordable housing investments is included in Income Tax Expense on the Consolidated Statements of Income. Positions taken in the tax returns may be subject to challenge by the taxing authorities upon examination. Uncertain tax positions are initially recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions are both initially and subsequently measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with the tax authority, assuming full knowledge of the position and all relevant facts. The Company provides for interest and, in some cases, penalties on tax positions that may be challenged by the taxing authorities. Interest expense is recognized beginning in the first period that such interest would begin accruing. Penalties are recognized in the period that the Company claims the position in the tax return. Interest and penalties on income tax uncertainties are classified within Income Tax Expense on the Consolidated Statements of Income.
Net Income Per Common Share	Net Income Per Common Share — Earnings per share is computed using the two-class method. Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding, excluding participating securities. Diluted earnings per common share is computed by using the weighted-average number of shares determined for the basic earnings per share calculation plus the dilutive effect of stock compensation using the treasure stock method.
Stock-Based Employee Compensation	Stock-Based Employee Compensation — The Company recognizes stock-based compensation as compensation cost on the Consolidated Statements of Income based on their fair values on the measurement date, which, for its purposes, is the date of grant. The Company recognizes forfeitures as they occur.
Segment Information	Segment Information — 1st Source has one principal business segment, commercial banking. While our chief decision makers monitor the revenue streams of various products and services, the identifiable segments’ operations are managed and financial performance is evaluated on a company-wide basis. Accordingly, all of the Company’s financial service operations are considered to be aggregated in one reportable operating segment.
Derivative Financial Instruments	Derivative Financial Instruments — The Company occasionally enters into derivative financial instruments as part of its interest rate risk management strategies. These derivative financial instruments consist primarily of interest rate swaps. All derivative instruments are recorded on the Consolidated Statements of Financial Condition, as either an asset or liability, at their fair value. The accounting for the gain or loss resulting from the change in fair value depends on the intended use of the derivative. For a derivative used to hedge changes in fair value of a recognized asset or liability, or an unrecognized firm commitment, the gain or loss on the derivative will be recognized in earnings together with the offsetting loss or gain on the hedged item. This results in an earnings impact only to the extent that the hedge is ineffective in achieving offsetting changes in fair value. If it is determined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued and the adjustment to fair value of the derivative instrument is recorded in earnings. For a derivative used to hedge changes in cash flows associated with forecasted transactions, the gain or loss on the effective portion of the derivative will be deferred, and reported as accumulated other comprehensive income, a component of shareholders’ equity, until such time the hedged transaction affects earnings. For derivative instruments not accounted for as hedges, changes in fair value are recognized in noninterest income/expense on the Consolidated Statements of Income. Deferred gains and losses from derivatives that are terminated and were in a cash flow hedge are amortized over the shorter of the original remaining term of the derivative or the remaining life of the underlying asset or liability.
Fair Value Measurements	Fair Value Measurements — The Company records certain assets and liabilities at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Securities available for sale, mortgage loans held for sale, and derivative instruments are carried at fair value on a recurring basis. Fair value measurements are also utilized to determine the initial value of certain assets and liabilities, to perform impairment assessments, and for disclosure purposes. The Company uses quoted market prices and observable inputs to the maximum extent possible when measuring fair value. In the absence of quoted market prices, various valuation techniques are utilized to measure fair value. When possible, observable market data for identical or similar financial instruments are used in the valuation. When market data is not available, fair value is determined using valuation models that incorporate management’s estimates of the assumptions a market participant would use in pricing the asset or liability. Fair value measurements are classified within one of three levels based on the observability of the inputs used to determine fair value, as follows: Level 1 — The valuation is based on quoted prices in active markets for identical instruments. Level 2 — The valuation is based on observable inputs such as 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 3 — The valuation is based on unobservable inputs that are supported by minimal or no market activity and that are significant to the fair value of the instrument. Level 3 valuations are typically performed using pricing models, discounted cash flow methodologies, or similar techniques that incorporate management’s own estimates of assumptions that market participants would use in pricing the instrument, or valuations that require significant management judgment or estimation.
Reclassifications	Reclassifications — Certain amounts in the prior periods consolidated financial statements have been reclassified to conform with the current year presentation. These reclassifications had no effect on total assets, shareholders’ equity or net income as previously reported.

Investment Securities Availab_2

Investment Securities Available-For-Sale (Tables)	12 Months Ended
Investment Securities Available-For-Sale (Tables)	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Schedule of investment securities available-for-sale	The following table shows investment securities available-for-sale. (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2022 U.S. Treasury and Federal agencies securities $ 1,090,743 $ — $ (92,145) $ 998,598 U.S. States and political subdivisions securities 130,670 591 (8,499) 122,762 Mortgage-backed securities - Federal agencies 730,672 60 (93,674) 637,058 Corporate debt securities 16,486 — (355) 16,131 Foreign government securities 600 — (21) 579 Total investment securities available-for-sale $ 1,969,171 $ 651 $ (194,694) $ 1,775,128 December 31, 2021 U.S. Treasury and Federal agencies securities $ 1,093,780 $ 3,244 $ (13,018) $ 1,084,006 U.S. States and political subdivisions securities 95,700 1,130 (1,129) 95,701 Mortgage-backed securities - Federal agencies 663,441 4,745 (8,459) 659,727 Corporate debt securities 22,510 499 — 23,009 Foreign government securities 600 — (2) 598 Total investment securities available-for-sale $ 1,876,031 $ 9,618 $ (22,608) $ 1,863,041
Schedule of contractual maturities of investments in debt securities available-for-sale	The following table shows the contractual maturities of investments in debt securities available-for-sale at December 31, 2022. Expected maturities will differ from contractual maturities, because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 63,325 $ 62,318 Due after one year through five years 1,112,166 1,016,225 Due after five years through ten years 21,835 18,204 Due after ten years 41,173 41,323 Mortgage-backed securities 730,672 637,058 Total debt securities available-for-sale $ 1,969,171 $ 1,775,128
Schedule of gross unrealized losses and fair value by investment category and age	The following table summarizes gross unrealized losses and fair value by investment category and age. At December 31, 2022, the Company’s available-for-sale securities portfolio consisted of 745 securities, 690 of which were in an unrealized loss position. Less than 12 Months 12 months or Longer Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2022 U.S. Treasury and Federal agencies securities $ 164,481 $ (6,299) $ 834,117 $ (85,846) $ 998,598 $ (92,145) U.S. States and political subdivisions securities 57,592 (2,126) 38,834 (6,373) 96,426 (8,499) Mortgage-backed securities - Federal agencies 198,469 (13,482) 426,989 (80,192) 625,458 (93,674) Corporate debt securities 16,132 (355) — — 16,132 (355) Foreign government securities 484 (16) 95 (5) 579 (21) Total debt securities available-for-sale $ 437,158 $ (22,278) $ 1,300,035 $ (172,416) $ 1,737,193 $ (194,694) December 31, 2021 U.S. Treasury and Federal agencies securities $ 789,536 $ (10,728) $ 84,191 $ (2,290) $ 873,727 $ (13,018) U.S. States and political subdivisions securities 39,585 (980) 4,875 (149) 44,460 (1,129) Mortgage-backed securities - Federal agencies 454,413 (7,312) 35,232 (1,147) 489,645 (8,459) Corporate debt securities — — — — — — Foreign government securities 598 (2) — — 598 (2) Total debt securities available-for-sale $ 1,284,132 $ (19,022) $ 124,298 $ (3,586) $ 1,408,430 $ (22,608)
Schedule of gross realized gains and losses from securities available-for-sale portfolio	The following table shows the gross realized gains and losses from the available-for-sale debt securities portfolio. Realized gains and losses of all securities are computed using the specific identification cost basis. (Dollars in thousands) 2022 2021 2020 Gross realized gains $ — $ 221 $ 285 Gross realized losses (184) (901) (6) Net realized (losses) gains $ (184) $ (680) $ 279

Loan and Lease Financings (Tabl

Loan and Lease Financings (Tables)	12 Months Ended
Loan and Lease Financings (Tables)	Dec. 31, 2022
Receivables [Abstract]
Schedule of amortized cost of loans and leases, segregated by portfolio segment, credit quality rating and year of origination	The following table shows the amortized cost of loans and leases, segregated by portfolio segment, credit quality rating and year of origination as of December 31, 2022. Term Loans and Leases by Origination Year (Dollars in thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and agricultural Grades 1-6 $ 159,317 $ 107,232 $ 71,365 $ 35,874 $ 17,192 $ 13,860 $ 370,553 $ — $ 775,393 Grades 7-12 4,491 5,934 60 2,094 1,644 1,040 21,375 — 36,638 Total commercial and agricultural 163,808 113,166 71,425 37,968 18,836 14,900 391,928 — 812,031 Solar Grades 1-6 109,393 113,276 35,660 72,652 18,518 20,654 — — 370,153 Grades 7-12 — — 1,091 5,678 701 3,540 — — 11,010 Total Solar 109,393 113,276 36,751 78,330 19,219 24,194 — — 381,163 Auto and light truck Grades 1-6 521,399 155,508 62,063 32,975 10,946 3,476 — — 786,367 Grades 7-12 5,972 3,366 5,836 2,836 1,792 1,948 — — 21,750 Total auto and light truck 527,371 158,874 67,899 35,811 12,738 5,424 — — 808,117 Medium and heavy duty truck Grades 1-6 158,296 66,533 43,711 31,980 10,053 3,274 — — 313,847 Grades 7-12 — — — — — 15 — — 15 Total medium and heavy duty truck 158,296 66,533 43,711 31,980 10,053 3,289 — — 313,862 Aircraft Grades 1-6 438,481 273,726 213,661 57,379 31,085 35,012 3,687 — 1,053,031 Grades 7-12 12,962 4,253 6,190 — — 1,286 — — 24,691 Total aircraft 451,443 277,979 219,851 57,379 31,085 36,298 3,687 — 1,077,722 Construction equipment Grades 1-6 475,854 213,349 106,409 59,204 17,834 4,593 23,310 2,754 903,307 Grades 7-12 20,709 7,757 2,483 1,878 313 32 583 1,441 35,196 Total construction equipment 496,563 221,106 108,892 61,082 18,147 4,625 23,893 4,195 938,503 Commercial real estate Grades 1-6 271,526 164,173 121,685 97,470 102,271 168,391 251 — 925,767 Grades 7-12 1,532 1,716 7,824 5,789 47 1,070 — — 17,978 Total commercial real estate 273,058 165,889 129,509 103,259 102,318 169,461 251 — 943,745 Residential real estate and home equity Performing 115,154 100,690 97,205 34,498 6,864 81,653 142,724 4,115 582,903 Nonperforming — 131 693 — — 725 180 105 1,834 Total residential real estate and home equity 115,154 100,821 97,898 34,498 6,864 82,378 142,904 4,220 584,737 Consumer Performing 74,258 34,619 12,924 7,375 2,977 692 18,098 — 150,943 Nonperforming 148 65 49 53 12 12 — — 339 Total consumer $ 74,406 $ 34,684 $ 12,973 $ 7,428 $ 2,989 $ 704 $ 18,098 $ — $ 151,282 The following table shows the amortized cost of loans and leases, segregated by portfolio segment, credit quality rating and year of origination as of December 31, 2021. Term Loans and Leases by Origination Year (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and agricultural Grades 1-6 $ 233,512 $ 123,947 $ 60,744 $ 55,231 $ 32,545 $ 20,184 $ 364,460 $ — $ 890,623 Grades 7-12 4,682 194 3,667 2,373 2,004 484 14,685 — 28,089 Total commercial and agricultural 238,194 124,141 64,411 57,604 34,549 20,668 379,145 — 918,712 Solar Grades 1-6 159,244 42,073 81,593 18,979 34,889 3,780 — — 340,558 Grades 7-12 — 1,138 5,882 724 — — — — 7,744 Total Solar 159,244 43,211 87,475 19,703 34,889 3,780 — — 348,302 Auto and light truck Grades 1-6 331,105 122,709 72,580 24,965 11,814 901 — — 564,074 Grades 7-12 10,828 11,752 7,467 3,859 4,876 919 — — 39,701 Total auto and light truck 341,933 134,461 80,047 28,824 16,690 1,820 — — 603,775 Medium and heavy duty truck Grades 1-6 92,252 68,354 57,967 23,210 12,419 5,265 — — 259,467 Grades 7-12 — — — — — 273 — — 273 Total medium and heavy duty truck 92,252 68,354 57,967 23,210 12,419 5,538 — — 259,740 Aircraft Grades 1-6 384,895 290,897 85,916 45,848 47,025 29,435 4,844 — 888,860 Grades 7-12 1,141 649 — 4,670 454 2,627 — — 9,541 Total aircraft 386,036 291,546 85,916 50,518 47,479 32,062 4,844 — 898,401 Construction equipment Grades 1-6 314,044 201,032 109,029 47,693 13,501 5,031 18,937 4,594 713,861 Grades 7-12 26,650 8,709 1,983 797 80 — — 2,193 40,412 Total construction equipment 340,694 209,741 111,012 48,490 13,581 5,031 18,937 6,787 754,273 Commercial real estate Grades 1-6 230,701 150,144 146,374 141,838 126,642 112,243 391 — 908,333 Grades 7-12 218 5,921 7,159 491 6,208 1,011 — — 21,008 Total commercial real estate 230,919 156,065 153,533 142,329 132,850 113,254 391 — 929,341 Residential real estate and home equity Performing 105,345 114,682 41,185 9,706 11,720 89,646 122,281 4,555 499,120 Nonperforming — — — 13 421 655 293 88 1,470 Total residential real estate and home equity 105,345 114,682 41,185 9,719 12,141 90,301 122,574 4,643 500,590 Consumer Performing 58,866 24,307 17,031 8,284 2,263 697 21,378 — 132,826 Nonperforming 37 107 43 30 33 4 — — 254 Total consumer $ 58,903 $ 24,414 $ 17,074 $ 8,314 $ 2,296 $ 701 $ 21,378 $ — $ 133,080
Schedule of amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status	The following table shows the amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status. (Dollars in thousands) Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due and Accruing Total Accruing Loans Nonaccrual Total Financing Receivables December 31, 2022 Commercial and agricultural $ 810,223 $ 944 $ — $ — $ 811,167 $ 864 $ 812,031 Solar 381,163 — — — 381,163 — 381,163 Auto and light truck 793,610 353 1 — 793,964 14,153 808,117 Medium and heavy duty truck 313,845 — 2 — 313,847 15 313,862 Aircraft 1,075,865 223 1,063 — 1,077,151 571 1,077,722 Construction equipment 932,603 431 — — 933,034 5,469 938,503 Commercial real estate 940,516 — — — 940,516 3,229 943,745 Residential real estate and home equity 582,053 562 288 49 582,952 1,785 584,737 Consumer 150,328 416 199 5 150,948 334 151,282 Total $ 5,980,206 $ 2,929 $ 1,553 $ 54 $ 5,984,742 $ 26,420 $ 6,011,162 December 31, 2021 Commercial and agricultural $ 916,659 $ — $ — $ — $ 916,659 $ 2,053 $ 918,712 Solar 348,302 — — — 348,302 — 348,302 Auto and light truck 579,605 — — — 579,605 24,170 603,775 Medium and heavy duty truck 259,467 — — — 259,467 273 259,740 Aircraft 894,092 1,130 2,530 — 897,752 649 898,401 Construction equipment 745,870 1,313 — — 747,183 7,090 754,273 Commercial real estate 926,345 — — — 926,345 2,996 929,341 Residential real estate and home equity 498,854 212 54 245 499,365 1,225 500,590 Consumer 132,464 332 30 4 132,830 250 133,080 Total $ 5,301,658 $ 2,987 $ 2,614 $ 249 $ 5,307,508 $ 38,706 $ 5,346,214
Schedule of loans and leases classified as troubled debt restructuring and number of modifications	The following table shows the number of loans and leases classified as troubled debt restructurings (TDRs) during 2022, 2021 and 2020, by portfolio segment, as well as the recorded investment as of December 31. The classification between nonperforming and performing is shown at the time of modification. Modification programs focused on extending maturity dates or modifying payment patterns with most TDRs experiencing a combination of concessions. The modifications did not result in the contractual forgiveness of principal or interest. The TDRs during 2020 were the result of issues that predated the COVID-19 pandemic. There was no modifications during 2022, one modification during 2021, and two modification during 2020 that resulted in an interest rate reduction below market rate. Consequently, the financial impact of the modifications was immaterial. 2022 2021 2020 (Dollars in thousands) Number of Modifications Recorded Investment Number of Modifications Recorded Investment Number of Modifications Recorded Investment Performing TDRs: Commercial and agricultural — $ — — $ — — $ — Solar — — — — — — Auto and light truck — — — — — — Medium and heavy duty truck — — — — — — Aircraft — — — — — — Construction equipment — — — — — — Commercial real estate — — — — — — Residential real estate and home equity — — — — — — Consumer — — — — — — Total performing TDR modifications — — — — — — Nonperforming TDRs: Commercial and agricultural — — — — — — Solar — — — — — — Auto and light truck — — — — — — Medium and heavy duty truck — — — — — — Aircraft — — — — 1 828 Construction equipment — — 1 5,729 1 9,905 Commercial real estate — — — — — — Residential real estate and home equity — — — — — — Consumer — — — — — — Total nonperforming TDR modifications — — 1 5,729 2 10,733 Total TDR modifications — $ — 1 $ 5,729 2 $ 10,733
Schedule of recorded investment in loans and leases classified as troubled debt restructuring	The following table shows the recorded investment of loans and leases classified as troubled debt restructurings as of December 31. Year Ended December 31 (Dollars in thousands) 2022 2021 Performing TDRs $ — $ 319 Nonperforming TDRs 3,640 6,742 Total TDRs $ 3,640 $ 7,061

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)	12 Months Ended
Allowance for Credit Losses (Tables)	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Schedule of changes in allowance for loan and lease losses, segregated by class	The following table shows the changes in the allowance for loan and lease losses, segregated by portfolio segment, for each of the three years ended December 31. (Dollars in thousands) Commercial and agricultural Solar Auto and light truck Medium Aircraft Construction equipment Commercial real estate Residential real estate and home equity Consumer Total 2022 Balance, beginning of year $ 15,409 $ 6,585 $ 19,624 $ 6,015 $ 33,628 $ 19,673 $ 19,691 $ 5,084 $ 1,783 $ 127,492 Charge-offs 625 — 118 — — 1,114 538 284 730 3,409 Recoveries 56 — 417 — 785 17 45 160 460 1,940 Net charge-offs (recoveries) 569 — (299) — (785) 1,097 493 124 270 1,469 Provision (recovery of provision) (205) 632 (1,289) 1,551 6,680 5,463 (1,767) 1,518 662 13,245 Balance, end of year $ 14,635 $ 7,217 $ 18,634 $ 7,566 $ 41,093 $ 24,039 $ 17,431 $ 6,478 $ 2,175 $ 139,268 2021 Balance, beginning of year $ 16,680 $ 5,549 $ 28,926 $ 6,400 $ 34,053 $ 19,166 $ 22,758 $ 5,374 $ 1,748 $ 140,654 Charge-offs 2,930 — 7,797 — — 856 — 228 712 12,523 Recoveries 812 — 1,316 — 687 473 19 16 341 3,664 Net charge-offs (recoveries) 2,118 — 6,481 — (687) 383 (19) 212 371 8,859 Provision (recovery of provision) 847 1,036 (2,821) (385) (1,112) 890 (3,086) (78) 406 (4,303) Balance, end of year $ 15,409 $ 6,585 $ 19,624 $ 6,015 $ 33,628 $ 19,673 $ 19,691 $ 5,084 $ 1,783 $ 127,492 2020 Balance, beginning of year $ 20,926 $ 2,745 $ 14,400 $ 4,612 $ 31,058 $ 14,120 $ 18,350 $ 3,609 $ 1,434 $ 111,254 Impact of ASC 326 adoption (939) 284 (1,303) 2,414 484 372 (649) 1,688 233 2,584 Adjusted balance, beginning of year 19,987 3,029 13,097 7,026 31,542 14,492 17,701 5,297 1,667 113,838 Charge-offs 903 — 7,107 15 855 4,090 37 74 893 13,974 Recoveries 663 — 499 18 1,800 1,415 58 33 303 4,789 Net charge-offs (recoveries) 240 — 6,608 (3) (945) 2,675 (21) 41 590 9,185 Provision (recovery of provision) (3,067) 2,520 22,437 (629) 1,566 7,349 5,036 118 671 36,001 Balance, end of year $ 16,680 $ 5,549 $ 28,926 $ 6,400 $ 34,053 $ 19,166 $ 22,758 $ 5,374 $ 1,748 $ 140,654
Schedule of changes in allowance for credit losses on unfunded loan commitments	The following table shows the changes in the liability for credit losses on unfunded loan commitments for each of the three years ended December 31. (Dollars in thousands) 2022 2021 2020 Balance, beginning of year $ 4,196 $ 4,499 $ 3,172 Impact of ASC 326 adoption — — 777 Adjusted balance, beginning of year 4,196 4,499 3,949 Provision (recovery of provision) 1,420 (303) 550 Balance, end of year $ 5,616 $ 4,196 $ 4,499

Lease Investments (Tables)

Lease Investments (Tables)	12 Months Ended
Lease Investments (Tables)	Dec. 31, 2022
Leases [Abstract]
Schedule of components of lease investments by category	The following table shows the components of the investment in direct finance and operating leases as of December 31. (Dollars in thousands) 2022 2021 Direct finance leases: Minimum lease payments $ 224,816 $ 172,017 Estimated unguaranteed residual values — — Less: Unearned income (50,633) (22,552) Net investment in direct finance leases $ 174,183 $ 149,465 Operating leases: Gross investment in operating leases $ 60,999 $ 95,046 Accumulated depreciation (29,299) (46,613) Net investment in operating leases $ 31,700 $ 48,433
Minimum future lease payments due from clients	The following table shows future minimum lease payments due from clients on direct finance and operating leases at December 31, 2022. (Dollars in thousands) Direct Operating Leases 2023 $ 48,011 $ 9,192 2024 32,764 5,526 2025 31,472 3,071 2026 25,890 1,489 2027 23,221 599 Thereafter 63,458 223 Total $ 224,816 $ 20,100
Schedule of the components of income from direct finance and operating lease equipment	The following table shows interest income recognized from direct finance lease payments and operating lease equipment rental income and related depreciation expense. (Dollars in thousands) 2022 2021 2020 Direct finance leases: Interest income on lease receivable $ 9,008 $ 6,634 $ 8,258 Operating leases: Income related to lease payments $ 12,274 $ 16,647 $ 23,380 Depreciation expense 10,023 13,694 20,203

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
Premises and Equipment (Tables)	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of premises and equipment	The following table shows premises and equipment as of December 31. (Dollars in thousands) 2022 2021 Land $ 15,500 $ 15,500 Buildings and improvements 61,860 61,257 Furniture and equipment 40,404 39,418 Total premises and equipment 117,764 116,175 Accumulated depreciation and amortization (72,991) (69,137) Net premises and equipment $ 44,773 $ 47,038

Mortgage Servicing Rights (Tabl

Mortgage Servicing Rights (Tables)	12 Months Ended
Mortgage Servicing Rights (Tables)	Dec. 31, 2022
Transfers and Servicing of Financial Assets [Abstract]
Schedule of changes in carrying value of mortgage servicing rights and the associated valuation allowance	The following table shows changes in the carrying value of MSRs and the associated valuation allowance. (Dollars in thousands) 2022 2021 Mortgage servicing rights: Balance at beginning of year $ 4,671 $ 4,616 Additions 753 2,172 Amortization (1,287) (2,117) Sales — — Carrying value before valuation allowance at end of year 4,137 4,671 Valuation allowance: Balance at beginning of year — (812) Impairment recoveries — 812 Balance at end of year $ — $ — Net carrying value of mortgage servicing rights at end of year $ 4,137 $ 4,671 Fair value of mortgage servicing rights at end of year $ 8,007 $ 5,640

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	12 Months Ended
Intangible Assets and Goodwill (Tables)	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of core deposit intangible and other intangible assets	The following table shows a summary of other intangible assets as of December 31. (Dollars in thousands) 2022 2021 Other intangibles: Gross carrying amount $ 146 $ 146 Less: accumulated amortization (106) (86) Net carrying amount $ 40 $ 60

Deposits (Tables)

Deposits (Tables)	12 Months Ended
Deposits (Tables)	Dec. 31, 2022
Deposits [Abstract]
Schedule of certificates of deposit of $250,000 or more and other time deposits of $250,000 or more by time remaining until maturity	The following table shows the amount of certificates of deposit of $250,000 or more and other time deposits of $250,000 or more outstanding at December 31, 2022, by time remaining until maturity. (Dollars in thousands) Under 3 months $ 149,632 4 – 6 months 71,595 7 – 12 months 175,229 Over 12 months 203,911 Total $ 600,367
Schedule of maturities of time deposits, including both private and public funds	The following table shows scheduled maturities of time deposits, including both private and public funds, at December 31, 2022. (Dollars in thousands) 2023 $ 796,947 2024 154,656 2025 82,635 2026 51,355 2027 33,229 Thereafter 21,637 Total $ 1,140,459

Borrowed Funds and Mandatoril_2

Borrowed Funds and Mandatorily Redeemable Securities (Tables)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Schedule of long-term debt and mandatorily redeemable securities	The following table shows the details of long-term debt and mandatorily redeemable securities as of December 31, 2022 and 2021. (Dollars in thousands) 2022 2021 Federal Home Loan Bank borrowings (1.04% – 2.80%) $ 21,315 $ 44,150 Mandatorily redeemable securities 17,905 20,598 Other long-term debt 7,335 6,503 Total long-term debt and mandatorily redeemable securities $ 46,555 $ 71,251
Schedule of short-term borrowings	The following table shows the details of short-term borrowings as of December 31, 2022 and 2021. 2022 2021 (Dollars in thousands) Amount Weighted Average Rate Amount Weighted Average Rate Federal funds purchased $ — — % $ — — % Securities sold under agreements to repurchase 141,432 0.05 194,727 0.05 Commercial paper 3,096 0.03 3,967 0.04 Federal Home Loan Bank advances 70,000 4.16 — — Other short-term borrowings 1,001 — 1,333 — Total short-term borrowings $ 215,529 1.39 % $ 200,027 0.05 %

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	12 Months Ended
Variable Interest Entities (Tables)	Dec. 31, 2022
Variable Interest Entities
Schedule of unconsolidated variable interest entities	The following table provides a summary of investments in affordable housing, community development and renewable energy VIEs that the Company has not consolidated as of December 31, 2022 and 2021. (Dollars in thousands) 2022 2021 Investment carrying amount $ 70,887 $ 35,968 Unfunded capital and other commitments 64,520 29,670 Maximum exposure to loss 45,020 50,319
Summary of subordinated notes	The following table shows subordinated notes at December 31, 2022. (Dollars in thousands) Amount of Subordinated Notes Interest Rate Maturity Date June 2007 issuance (1) $ 41,238 7.22 % 6/15/2037 August 2007 issuance (2) 17,526 6.25 % 9/15/2037 Total $ 58,764 (1) Fixed rate through life of debt. (2) 3-Month LIBOR +1.48% through remaining life of debt.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
Earnings Per Share (Tables)	Dec. 31, 2022
Earnings Per Share [Abstract]
Schedule of reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share	The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share for the three years ending December 31. (Dollars in thousands - except per share amounts) 2022 2021 2020 Distributed earnings allocated to common stock $ 31,095 $ 30,369 $ 28,859 Undistributed earnings allocated to common stock 88,419 87,237 52,044 Net earnings allocated to common stock 119,514 117,606 80,903 Net earnings allocated to participating securities 995 928 534 Net income allocated to common stock and participating securities $ 120,509 $ 118,534 $ 81,437 Weighted average shares outstanding for basic earnings per common share 24,687,324 25,038,127 25,525,154 Dilutive effect of stock compensation — — — Weighted average shares outstanding for diluted earnings per common share 24,687,324 25,038,127 25,525,154 Basic earnings per common share $ 4.84 $ 4.70 $ 3.17 Diluted earnings per common share $ 4.84 $ 4.70 $ 3.17

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	12 Months Ended
Accumulated Other Comprehensive Loss (Tables)	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of reclassifications out of accumulated other comprehensive income	Accumulated Other Comprehensive Loss The following table presents reclassifications out of accumulated other comprehensive loss related to unrealized gains and losses on available-for-sale securities for the two years ending December 31. (Dollars in thousands) 2022 2021 Affected Line Item in the Statements of Income Realized losses included in net income $ (184) $ (680) (Losses) gains on investment securities available-for-sale (184) (680) Income before income taxes Tax effect 43 160 Income tax expense Net of tax $ (141) $ (520) Net income

Stock Based Compensation (Table

Stock Based Compensation (Tables)	12 Months Ended
Stock Based Compensation (Tables)	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Summary of activity regarding active stock option and stock award plans	The following table shows the combined summary of activity regarding active stock option and stock award plans. Non-Vested Stock Awards Outstanding Shares Available for Grant Number of Shares Weighted-Average Grant-Date Fair Value Balance, January 1, 2020 664,502 218,991 $ 29.60 Shares authorized - 2020 EIP 60,233 — — Granted (147,576) 147,576 37.41 Stock awards vested — (74,203) 28.95 Forfeited 49 (870) 31.82 Balance, December 31, 2020 577,208 291,494 33.71 Shares authorized - 2021 EIP 62,369 — — Granted (79,072) 79,072 36.22 Stock awards vested — (92,622) 32.53 Forfeited 250 (3,798) 32.12 Balance, December 31, 2021 560,755 274,146 34.86 Shares authorized - 2022 EIP 287,503 — — Granted (127,198) 127,198 40.44 Stock awards vested — (97,640) 34.92 Forfeited 9,131 (15,179) 36.53 Balance, December 31, 2022 730,191 288,525 $ 37.03

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
Income Taxes (Tables)	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of income tax expense	The following table shows the composition of income tax expense. Year Ended December 31 (Dollars in thousands) 2022 2021 2020 Current: Federal $ 38,779 $ 16,346 $ 42,411 State 6,937 4,586 6,629 Total current 45,716 20,932 49,040 Deferred: Federal (7,936) 14,206 (21,865) State (1,525) 1,190 (2,295) Total deferred (9,461) 15,396 (24,160) Total provision $ 36,255 $ 36,328 $ 24,880
Schedule of reasons for the difference between income tax expense and the amount computed by applying the statutory federal income tax rate	The following table shows the reasons for the difference between income tax expense and the amount computed by applying the statutory federal income tax rate (21%) to income before income taxes. 2022 2021 2020 Year Ended December 31 (Dollars in thousands) Amount Percent of Pretax Income Amount Percent of Pretax Income Amount Percent of Pretax Income Statutory federal income tax $ 32,925 21.0 % $ 32,526 21.0 % $ 22,332 21.0 % (Decrease) increase in income taxes resulting from: Tax-exempt interest income (504) (0.3) (373) (0.2) (439) (0.4) State taxes, net of federal income tax benefit 4,275 2.7 4,563 2.9 3,424 3.2 Other (441) (0.3) (388) (0.2) (437) (0.4) Total $ 36,255 23.1 % $ 36,328 23.5 % $ 24,880 23.4 %
Schedule of deferred tax assets and liabilities	The following table shows the composition of deferred tax assets and liabilities as of December 31, 2022 and 2021. (Dollars in thousands) 2022 2021 Deferred tax assets: Allowance for credit losses $ 33,237 $ 32,431 Operating lease liability 4,728 5,145 Accruals for employee benefits 3,752 3,837 Capitalized loan costs — 15 Net unrealized losses on securities available-for-sale 46,353 3,128 Other 426 1,015 Total deferred tax assets 88,496 45,571 Deferred tax liabilities: Differing depreciable bases in premises and leased equipment 7,373 10,796 Right of use assets - leases 5,037 5,315 Differing bases in assets related to acquisitions 4,305 4,219 Tax advantaged partnerships 3,823 9,502 Other 245 713 Total deferred tax liabilities 20,783 30,545 Net deferred tax asset $ 67,713 $ 15,026

Contingent Liabilities, Commi_2

Contingent Liabilities, Commitments, and Financial Instruments with Off-Balance-Sheet Risk (Tables)	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Operating lease right of use assets and operating lease liabilities	The following table shows operating lease right of use assets and operating lease liabilities as of December 31. (Dollars in thousands) Statement of Financial Condition classification 2022 2021 Operating lease right of use assets Accrued income and other assets $ 20,916 $ 22,071 Operating lease liabilities Accrued expenses and other liabilities $ 19,634 $ 21,364
Components of operating lease expense	The following table shows the components of operating leases expense for the year ended December 31. (Dollars in thousands) Statement of Income classification 2022 2021 2020 Operating lease cost Net occupancy expense $ 3,527 $ 3,480 $ 3,472 Short-term lease cost Net occupancy expense 18 20 8 Variable lease cost (recovery of cost) Net occupancy expense 8 — (30) Total operating lease cost $ 3,553 $ 3,500 $ 3,450
Future minimum rental commitments for noncancellable operating leases	The following table shows future minimum rental commitments for all noncancellable operating leases with an initial term longer than 12 months for the next five years and thereafter. (Dollars in thousands) 2023 $ 3,862 2024 3,281 2025 2,913 2026 2,620 2027 2,091 Thereafter 6,398 Total lease payments 21,165 Less: imputed interest (1,531) Present value of operating lease liabilities $ 19,634
Operating lease weighted average remaining term, discount rate, and supplmental cash flows information	The following table shows the weighted average remaining operating lease term, the weighted average discount rate and supplemental Consolidated Statement of Cash Flows information for operating leases at December 31. (Dollars in thousands) 2022 2021 2020 Weighted average remaining lease term 9.33 years 9.31 years 10.17 years Weighted average discount rate 1.85 % 1.75 % 1.80 % Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,298 $ 4,006 $ 3,794
Schedule of financial instruments whose contract amounts represent credit risk	Financial instruments, whose contract amounts represent credit risk as of December 31, were as follows: (Dollars in thousands) 2022 2021 Amounts of commitments: Loan commitments to extend credit $ 1,234,866 $ 1,148,984 Standby letters of credit $ 18,055 $ 24,657 Commercial and similar letters of credit $ 2,368 $ 8,531

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	12 Months Ended
Derivative Financial Instruments (Tables)	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of amounts of non-hedging derivative financial instruments	The following table shows the amounts of non-hedging derivative financial instruments at December 31, 2022 and 2021. Asset derivatives Liability derivatives (Dollars in thousands) Notional or contractual amount Statement of Financial Condition classification Fair value Statement of Financial Condition classification Fair value Interest rate swap contracts $ 881,600 Other assets $ 24,838 Other liabilities $ 25,307 Loan commitments 2,638 Mortgages held for sale 67 N/A — Forward contracts - mortgage loan 3,750 Mortgages held for sale 24 N/A — Total - December 31, 2022 $ 887,988 $ 24,929 $ 25,307 Interest rate swap contracts $ 1,064,721 Other assets $ 20,735 Other liabilities $ 21,172 Loan commitments 15,086 Mortgages held for sale 452 N/A — Forward contracts - mortgage loan 22,000 N/A — Mortgages held for sale 11 Total - December 31, 2021 $ 1,101,807 $ 21,187 $ 21,183
Schedule of amounts included in the consolidated statements of income for non-hedging derivative financial instruments	The following table shows the amounts included on the Consolidated Statements of Income for non-hedging derivative financial instruments at December 31, 2022, 2021 and 2020. Gain (loss) (Dollars in thousands) Statement of Income classification 2022 2021 2020 Interest rate swap contracts Other expense $ (32) $ 591 $ (650) Interest rate swap contracts Other income 83 410 879 Loan commitments Mortgage banking (385) (1,035) 1,302 Forward contracts - mortgage loan Mortgage banking 35 279 (252) Total $ (299) $ 245 $ 1,279
Schedule of offsetting of financial assets and derivative assets	The following table shows the offsetting of financial assets and derivative assets at December 31, 2022 and 2021. Gross Amounts Not Offset in the Statement of Financial Condition (Dollars in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Assets Presented in the Statement of Financial Condition Financial Instruments Cash Collateral Received Net Amount December 31, 2022 Interest rate swaps $ 24,838 $ — $ 24,838 $ — $ 25,295 $ (457) December 31, 2021 Interest rate swaps $ 24,436 $ 3,701 $ 20,735 $ — $ — $ 20,735
Schedule of offsetting of financial liabilities and derivative liabilities	The following table shows the offsetting of financial liabilities and derivative liabilities at December 31, 2022 and 2021. Gross Amounts Not Offset in the Statement of Financial Condition (Dollars in thousands) Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statement of Financial Condition Net Amounts of Liabilities Presented in the Statement of Financial Condition Financial Instruments Cash Collateral Pledged Net Amount December 31, 2022 Interest rate swaps $ 25,307 $ — $ 25,307 $ — $ — $ 25,307 Repurchase agreements 141,432 — 141,432 141,432 — — Total $ 166,739 $ — $ 166,739 $ 141,432 $ — $ 25,307 December 31, 2021 Interest rate swaps $ 24,873 $ 3,701 $ 21,172 $ 20,498 $ — $ 674 Repurchase agreements 194,727 — 194,727 194,727 — — Total $ 219,600 $ 3,701 $ 215,899 $ 215,225 $ — $ 674

Regulatory Matters (Tables)

Regulatory Matters (Tables)	12 Months Ended
Regulatory Matters (Tables)	Dec. 31, 2022
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]
Schedule of actual and required capital amounts and ratios	The following table shows the actual and required capital amounts and ratios for 1st Source Corporation and 1st Source Bank as of December 31, 2022 and 2021. Actual Minimum Capital Adequacy Minimum Capital Adequacy with Capital Buffer To Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio 2022 Total Capital (to Risk-Weighted Assets): 1st Source Corporation $ 1,137,984 16.10 % $ 565,314 8.00 % $ 741,975 10.50 % $ 706,643 10.00 % 1st Source Bank 1,060,292 15.01 565,119 8.00 741,718 10.50 706,398 10.00 Tier 1 Capital (to Risk-Weighted Assets): 1st Source Corporation 1,048,955 14.84 423,986 6.00 600,647 8.50 565,314 8.00 1st Source Bank 971,294 13.75 423,839 6.00 600,439 8.50 565,119 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): 1st Source Corporation 932,257 13.19 317,989 4.50 494,650 7.00 459,318 6.50 1st Source Bank 911,596 12.90 317,879 4.50 494,479 7.00 459,159 6.50 Tier 1 Capital (to Average Assets): 1st Source Corporation 1,048,955 12.63 332,287 4.00 N/A N/A 415,359 5.00 1st Source Bank 971,294 11.70 332,125 4.00 N/A N/A 415,156 5.00 2021 Total Capital (to Risk-Weighted Assets): 1st Source Corporation $ 1,034,605 16.76 % $ 493,751 8.00 % $ 648,048 10.50 % $ 617,189 10.00 % 1st Source Bank 969,228 15.71 493,412 8.00 647,603 10.50 616,765 10.00 Tier 1 Capital (to Risk-Weighted Assets): 1st Source Corporation 956,783 15.50 370,313 6.00 524,611 8.50 493,751 8.00 1st Source Bank 891,458 14.45 370,059 6.00 524,250 8.50 493,412 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): 1st Source Corporation 846,573 13.72 277,735 4.50 432,032 7.00 401,173 6.50 1st Source Bank 838,248 13.59 277,544 4.50 431,735 7.00 400,897 6.50 Tier 1 Capital (to Average Assets): 1st Source Corporation 956,783 11.89 321,925 4.00 N/A N/A 402,407 5.00 1st Source Bank 891,458 11.08 321,821 4.00 N/A N/A 402,277 5.00

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
Fair Value Measurements (Tables)	Dec. 31, 2022
Fair value measurements
Schedule of differences between the fair value carrying amount of mortgages held for sale measured at fair value and the aggregate unpaid principal amount	The following table shows the differences between fair value carrying amount of mortgages held for sale measured at fair value and the aggregate unpaid principal amount the Company is contractually entitled to receive at maturity on December 31, 2022 and 2021. (Dollars in thousands) Fair value carrying amount Aggregate unpaid principal Excess of fair value carrying amount over (under) unpaid principal December 31, 2022 Mortgages held for sale reported at fair value: Total Loans $ 3,914 $ 3,766 $ 148 (1) December 31, 2021 Mortgages held for sale reported at fair value: Total Loans $ 13,284 $ 12,456 $ 828 (1) (1) The excess of fair value carrying amount over (under) unpaid principal is included in mortgage banking income and includes changes in fair value at and subsequent to funding and gains and losses on the related loan commitment prior to funding.
Schedule of assets and liabilities measured at fair value on a recurring basis	The following table shows the balance of assets and liabilities measured at fair value on a recurring basis. (Dollars in thousands) Level 1 Level 2 Level 3 Total December 31, 2022 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 573,679 $ 424,919 $ — $ 998,598 U.S. States and political subdivisions securities — 121,298 1,464 122,762 Mortgage-backed securities - Federal agencies — 637,058 — 637,058 Corporate debt securities — 16,131 — 16,131 Foreign government and other securities — 579 — 579 Total debt securities available-for-sale 573,679 1,199,985 1,464 1,775,128 Mortgages held for sale — 3,914 — 3,914 Accrued income and other assets (interest rate swap agreements) — 24,838 — 24,838 Total $ 573,679 $ 1,228,737 $ 1,464 $ 1,803,880 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 25,307 $ — $ 25,307 Total $ — $ 25,307 $ — $ 25,307 December 31, 2021 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 561,950 $ 522,056 $ — $ 1,084,006 U.S. States and political subdivisions securities — 93,852 1,849 95,701 Mortgage-backed securities - Federal agencies — 659,727 — 659,727 Corporate debt securities — 23,009 — 23,009 Foreign government and other securities — 598 — 598 Total debt securities available-for-sale 561,950 1,299,242 1,849 1,863,041 Mortgages held for sale — 13,284 — 13,284 Accrued income and other assets (interest rate swap agreements) — 20,735 — 20,735 Total $ 561,950 $ 1,333,261 $ 1,849 $ 1,897,060 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 21,172 $ — $ 21,172 Total $ — $ 21,172 $ — $ 21,172
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis	The following table shows the changes in Level 3 assets and liabilities measured at fair value on a recurring basis. (Dollars in thousands) U.S. States and political subdivisions securities Beginning balance January 1, 2022 $ 1,849 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (135) Purchases 3,000 Issuances — Sales — Settlements — Maturities (3,250) Transfers into Level 3 — Transfers out of Level 3 — Ending balance December 31, 2022 $ 1,464 Beginning balance January 1, 2021 $ 2,152 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (15) Purchases — Issuances — Sales — Settlements — Maturities (288) Transfers into Level 3 — Transfers out of Level 3 — Ending balance December 31, 2021 $ 1,849
Schedule of carrying value of assets measured at fair value on a non-recurring basis	The following table shows the carrying value of assets measured at fair value on a non-recurring basis. (Dollars in thousands) Level 1 Level 2 Level 3 Total December 31, 2022 Collateral-dependent impaired loans $ — $ — $ — $ — Accrued income and other assets (mortgage servicing rights) — — 4,137 4,137 Accrued income and other assets (repossessions) — — 327 327 Accrued income and other assets (other real estate) — — 104 104 Total $ — $ — $ 4,568 $ 4,568 December 31, 2021 Collateral-dependent impaired loans $ — $ — $ 571 $ 571 Accrued income and other assets (mortgage servicing rights) — — 4,671 4,671 Accrued income and other assets (repossessions) — — 861 861 Accrued income and other assets (other real estate) — — — — Total $ — $ — $ 6,103 $ 6,103
Schedule of fair values of financial instruments	The following table shows the fair values of the Company’s financial instruments. (Dollars in thousands) Carrying or Contract Value Fair Value Level 1 Level 2 Level 3 December 31, 2022 Assets: Cash and due from banks $ 84,703 $ 84,703 $ 84,703 $ — $ — Federal funds sold and interest bearing deposits with other banks 38,094 38,094 38,094 — — Investment securities, available-for-sale 1,775,128 1,775,128 573,679 1,199,985 1,464 Other investments 25,293 25,293 25,293 — — Mortgages held for sale 3,914 3,914 — 3,914 — Loans and leases, net of allowance for loan and lease losses 5,871,894 5,712,972 — — 5,712,972 Mortgage servicing rights 4,137 8,007 — — 8,007 Accrued interest receivable 24,747 24,747 — 24,747 — Interest rate swaps 24,838 24,838 — 24,838 — Liabilities: Deposits $ 6,928,265 $ 6,909,392 $ 5,787,806 $ 1,121,586 $ — Short-term borrowings 215,529 215,529 139,079 76,450 — Long-term debt and mandatorily redeemable securities 46,555 45,111 — 45,111 — Subordinated notes 58,764 51,398 — 51,398 — Accrued interest payable 5,999 5,999 — 5,999 — Interest rate swaps 25,307 25,307 — 25,307 — Off-balance-sheet instruments * — 108 — 108 — December 31, 2021 Assets: Cash and due from banks $ 54,420 $ 54,420 $ 54,420 $ — $ — Federal funds sold and interest bearing deposits with other banks 470,767 470,767 470,767 — — Investment securities, available-for-sale 1,863,041 1,863,041 561,950 1,299,242 1,849 Other investments 27,189 27,189 27,189 — — Mortgages held for sale 13,284 13,284 — 13,284 — Loans and leases, net of allowance for loan and lease losses 5,218,722 5,269,551 — — 5,269,551 Mortgage servicing rights 4,671 5,640 — — 5,640 Accrued interest receivable 17,760 17,760 — 17,760 — Interest rate swaps 20,735 20,735 — 20,735 — Liabilities: Deposits $ 6,679,065 $ 6,680,163 $ 5,794,928 $ 885,235 $ — Short-term borrowings 200,027 200,027 192,801 7,226 — Long-term debt and mandatorily redeemable securities 71,251 71,305 — 71,305 — Subordinated notes 58,764 58,553 — 58,553 — Accrued interest payable 1,885 1,885 — 1,885 — Interest rate swaps 21,172 21,172 — 21,172 — Off-balance-sheet instruments * — 364 — 364 — * Represents estimated cash outflows required to currently settle the obligations at current market rates.
Recurring
Fair value measurements
Schedule of valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis	The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis. (Dollars in thousands) Fair value Valuation Methodology Unobservable Inputs Range of Inputs Weighted Average December 31, 2022 Debt securities available-for-sale Direct placement municipal securities $ 1,464 Discounted cash flows Credit spread assumption 0.22% - 4.09% 3.49 % December 31, 2021 Debt securities available-for-sale Direct placement municipal securities $ 1,849 Discounted cash flows Credit spread assumption 0.04% - 2.31% 1.58 %
Non-recurring
Fair value measurements
Schedule of valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis	The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a non-recurring basis. (Dollars in thousands) Carrying Value Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Weighted Average December 31, 2022 Collateral-dependent impaired loans $ — $ — Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 0% - 0% 0 % Mortgage servicing rights 4,137 8,007 Discounted cash flows Constant prepayment rate (CPR) 7.6% - 9.6% 8.2 % Discount rate 11.4% - 14.2% 11.5 % Repossessions 327 370 Appraisals, trade publications and auction values Discount for lack of marketability 2% - 9% 7 % Other real estate 104 104 Appraisals Discount for lack of marketability 0% - 0% 0 % December 31, 2021 Collateral-dependent impaired loans $ 571 $ 571 Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 20% - 90% 43.1 % Mortgage servicing rights 4,671 5,640 Discounted cash flows Constant prepayment rate (CPR) 11.8% - 18.5% 16.4 % Discount rate 8.6% - 11.5% 8.8 % Repossessions 861 942 Appraisals, trade publications and auction values Discount for lack of marketability 0% - 21% 2 % Other real estate — — Appraisals Discount for lack of marketability 0% - 0% 0 %

1st Source Corporation (Paren_2

1st Source Corporation (Parent Company Only) Financial Information (Tables)	12 Months Ended
	Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract]
Schedule of statements of financial condition	STATEMENTS OF FINANCIAL CONDITION December 31 (Dollars in thousands) 2022 2021 ASSETS Cash and cash equivalents $ 104,678 $ 94,543 Short-term investments with bank subsidiary 500 500 Investments in: Bank subsidiaries 842,707 907,238 Non-bank subsidiaries 1 1 Right of use assets 14,730 16,106 Other assets 6,234 6,877 Total assets $ 968,850 $ 1,025,265 LIABILITIES AND SHAREHOLDERS’ EQUITY Commercial paper $ 3,096 $ 3,967 Long-term debt and mandatorily redeemable securities 25,240 27,102 Subordinated notes 58,764 58,764 Operating lease liability 13,509 15,463 Other liabilities 4,173 3,714 Total liabilities 104,782 109,010 Total shareholders’ equity 864,068 916,255 Total liabilities and shareholders’ equity $ 968,850 $ 1,025,265
Schedule of statements of income	STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Year Ended December 31 (Dollars in thousands) 2022 2021 2020 Income: Dividends from bank subsidiary $ 49,588 $ 46,207 $ 46,207 Rental income from (reimbursements to) subsidiaries 1,740 1,873 (908) Other 148 146 293 Investment securities and other investment gains (losses) 353 342 (44) Total income 51,829 48,568 45,548 Expenses: Interest on subordinated notes 3,550 3,267 3,367 Interest on long-term debt and mandatorily redeemable securities (341) 1,799 2,151 Interest on commercial paper and other short-term borrowings 1 3 11 Occupancy 1,625 1,722 1,816 Other 890 711 667 Total expenses 5,725 7,502 8,012 Income before income tax benefit and equity in undistributed income of subsidiaries 46,104 41,066 37,536 Income tax benefit 1,099 998 1,747 Income before equity in undistributed income of subsidiaries 47,203 42,064 39,283 Equity in undistributed income of subsidiaries: Bank subsidiaries 73,329 76,493 42,178 Net income $ 120,532 $ 118,557 $ 81,461 Comprehensive (loss) income $ (17,297) $ 90,325 $ 94,660
Schedule of statements of cash flow	STATEMENTS OF CASH FLOWS Year Ended December 31 (Dollars in thousands) 2022 2021 2020 Operating activities: Net income $ 120,532 $ 118,557 $ 81,461 Adjustments to reconcile net income to net cash provided by operating activities: Equity (undistributed) distributed in excess of income of subsidiaries (73,329) (76,493) (42,178) Depreciation of premises and equipment — 1 2 Amortization of right of use assets 1,376 1,346 1,107 Stock-based compensation 120 102 94 Realized/unrealized investment securities and other investment (gains) losses (353) (342) 44 Other (702) 1,556 (103) Net change in operating activities 47,644 44,727 40,427 Investing activities: Net change in partnership investments 102 (74) (182) Net change in investing activities 102 (74) (182) Financing activities: Net change in commercial paper (871) (800) 774 Proceeds from issuance of long-term debt and mandatorily redeemable securities 1,862 1,738 1,640 Payments on long-term debt and mandatorily redeemable securities (2,708) (2,427) (2,268) Stock issued under stock purchase plans 252 90 39 Net proceeds from issuance of treasury stock 2,792 2,523 1,706 Acquisition of treasury stock (6,836) (33,136) (6,415) Cash dividends paid on common stock (32,102) (31,340) (29,764) Net change in financing activities (37,611) (63,352) (34,288) Net change in cash and cash equivalents 10,135 (18,699) 5,957 Cash and cash equivalents, beginning of year 94,543 113,242 107,285 Cash and cash equivalents, end of year $ 104,678 $ 94,543 $ 113,242

Accounting Policies (Details)

Accounting Policies (Details)	12 Months Ended
Accounting Policies (Details)	Dec. 31, 2022 USD ($) segment unit class Rate	Dec. 31, 2021 USD ($)
Securities
Held-to-maturity investment securities	$ 0	$ 0
Loans and leases
Percentage of the principal balance that may be repurchased of a delinquent Ginnie Mae (GNMA) mortgage loan (as a percent)	100%
Allowance for credit losses
Number of segments within the loan and lease portfolio with similar risk characteristics \| class	9
Lease Commitments
Minimum lease liability for capitalization	$ 2,000
Residual value guarantees or restriction or covenants imposed by leases	no
Minimum initial lease term for recording right of use asset and lease liability	12 months
Other real estate
Carrying value of other real estate	$ 100,000	0
Repossessed assets
Repossessed assets value	$ 330,000	860,000
Goodwill and intangibles
Number of reportable units used in goodwill allocation \| unit	2
Goodwill impairment	$ 0
Partnership investment
Maximum percentage of partnership accounted for as equity investment \| Rate	50%
Investment in partnership	$ 137,150,000	95,050,000
Segment reporting
Number of business segments aggregated as reportable operating segments \| segment	1
Residential real estate portfolio
Loans and leases
Loans available for repurchase	$ 1,000,000	$ 1,330,000
Minimum
Loans and leases
Period of sustained performance required to change from non-performing to performing status	6 months
Equipment owned under operating lease
Lease term	3 years
Lease Commitments
Economic life test to determine lease classification	twenty years
Fair value test percentage of the fair value of the asset \| Rate	90%
Premises and equipment
Useful life of premises and equipment	3 years
Income taxes
Tax benefit realized on settlement, percentage	50%
Minimum \| Federal funds purchased
Short-term borrowings:
Term of short-term debt	1 day
Minimum \| Security repurchase agreements
Short-term borrowings:
Term of short-term debt	1 day
Minimum \| Other short-term borrowings
Short-term borrowings:
Term of short-term debt	1 day
Minimum \| Commercial paper
Short-term borrowings:
Term of short-term debt	7 days
Maximum
Allowance for credit losses
Current expected credit losses initial loss forecast term	2 years
Equipment owned under operating lease
Lease term	7 years
Premises and equipment
Useful life of premises and equipment	31 years 6 months
Goodwill and intangibles
Useful life of finite lived assets	25 years
Maximum \| Federal funds purchased
Short-term borrowings:
Term of short-term debt	365 days
Maximum \| Security repurchase agreements
Short-term borrowings:
Term of short-term debt	365 days
Maximum \| Other short-term borrowings
Short-term borrowings:
Term of short-term debt	365 days
Maximum \| Commercial paper
Short-term borrowings:
Term of short-term debt	270 days

Investment Securities Availab_3

Investment Securities Available-For-Sale (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Due in one year or less	$ 63,325
Due after one year through five years	1,112,166
Due after five years through ten years	21,835
Due after ten years	41,173
Mortgage-backed securities	730,672
Total debt securities available-for-sale	1,969,171	$ 1,876,031
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Due in one year or less	62,318
Due after one year through five years	1,016,225
Due after five years through ten years	18,204
Due after ten years	41,323
Mortgage-backed securities	637,058
Total debt securities available-for-sale	1,775,128	1,863,041
Accrued interest receivable on investment securities available-for-sale	$ 5,980	$ 4,800
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Accrued income and other assets	Accrued income and other assets
U.S. Treasury and Federal agencies securities
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Total debt securities available-for-sale	$ 1,090,743	$ 1,093,780
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	998,598	1,084,006
U.S. States and political subdivisions securities
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Total debt securities available-for-sale	130,670	95,700
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	122,762	95,701
Mortgage-backed securities - Federal agencies
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Total debt securities available-for-sale	730,672	663,441
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	637,058	659,727
Corporate debt securities
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Total debt securities available-for-sale	16,486	22,510
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	16,131	23,009
Foreign government and other securities
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Total debt securities available-for-sale	600	600
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	$ 579	$ 598

Investment Securities Availab_4

Investment Securities Available-For-Sale (Details 2) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	$ 1,969,171	$ 1,876,031
Gross Unrealized Gains	651	9,618
Gross Unrealized Losses	(194,694)	(22,608)
Investment securities available-for-sale	1,775,128	1,863,041
Fair Value
Less than 12 Months	437,158	1,284,132
12 Months or Longer	1,300,035	124,298
Total fair value	1,737,193	1,408,430
Unrealized Losses
Less than 12 Months	(22,278)	(19,022)
12 Months or Longer	(172,416)	(3,586)
Total unrealized losses	(194,694)	(22,608)
Gross realized gains and losses
Gross realized gains	0	221	$ 285
Gross realized losses	(184)	(901)	(6)
Net realized (losses) gains	(184)	(680)	$ 279
Investment securities pledged as collateral	$ 282,870	351,130
Number of available-for-sale debt securities	745
Number of available-for-sale debt securities in an unrealized loss position	690
U.S. Treasury and Federal agencies securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	$ 1,090,743	1,093,780
Gross Unrealized Gains	0	3,244
Gross Unrealized Losses	(92,145)	(13,018)
Investment securities available-for-sale	998,598	1,084,006
Fair Value
Less than 12 Months	164,481	789,536
12 Months or Longer	834,117	84,191
Total fair value	998,598	873,727
Unrealized Losses
Less than 12 Months	(6,299)	(10,728)
12 Months or Longer	(85,846)	(2,290)
Total unrealized losses	(92,145)	(13,018)
U.S. States and political subdivisions securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	130,670	95,700
Gross Unrealized Gains	591	1,130
Gross Unrealized Losses	(8,499)	(1,129)
Investment securities available-for-sale	122,762	95,701
Fair Value
Less than 12 Months	57,592	39,585
12 Months or Longer	38,834	4,875
Total fair value	96,426	44,460
Unrealized Losses
Less than 12 Months	(2,126)	(980)
12 Months or Longer	(6,373)	(149)
Total unrealized losses	(8,499)	(1,129)
Mortgage-backed securities - Federal agencies
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	730,672	663,441
Gross Unrealized Gains	60	4,745
Gross Unrealized Losses	(93,674)	(8,459)
Investment securities available-for-sale	637,058	659,727
Fair Value
Less than 12 Months	198,469	454,413
12 Months or Longer	426,989	35,232
Total fair value	625,458	489,645
Unrealized Losses
Less than 12 Months	(13,482)	(7,312)
12 Months or Longer	(80,192)	(1,147)
Total unrealized losses	(93,674)	(8,459)
Corporate debt securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	16,486	22,510
Gross Unrealized Gains	0	499
Gross Unrealized Losses	(355)	0
Investment securities available-for-sale	16,131	23,009
Fair Value
Less than 12 Months	16,132	0
12 Months or Longer	0	0
Total fair value	16,132	0
Unrealized Losses
Less than 12 Months	(355)	0
12 Months or Longer	0	0
Total unrealized losses	(355)	0
Foreign government and other securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	600	600
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(21)	(2)
Investment securities available-for-sale	579	598
Fair Value
Less than 12 Months	484	598
12 Months or Longer	95	0
Total fair value	579	598
Unrealized Losses
Less than 12 Months	(16)	(2)
12 Months or Longer	(5)	0
Total unrealized losses	$ (21)	$ (2)

Loan and Lease Financings (Deta

Loan and Lease Financings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Total loans and leases	$ 6,011,162	$ 5,346,214
Deferred loan and lease costs	2,000	(90)
PPP loans receivable deferred income	10	2,710
Accrued interest receivable on loans and leases	$ 18,750	$ 12,940
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration]	Accrued income and other assets	Accrued income and other assets
Loans to certain directors, executive officers, and principal shareholders of equity securities of the entity and to their affiliates
Loan to related parties	$ 12,530	$ 14,050
New loans and other additions to related parties	450
Repayments and other reductions of loan given to related parties	1,970
PPP loan originations	0	261,460
PPP loan balance	$ 900	$ 73,080

Loan and Lease Financings (De_2

Loan and Lease Financings (Details 2)	12 Months Ended
Loan and Lease Financings (Details 2)	Dec. 31, 2022 USD ($) method class	Dec. 31, 2021 USD ($)
Receivables [Abstract]
Number of methods to assess credit risk \| method	2
Loan and Lease Financings
Amortized cost of loans and leases	$ 6,011,162,000	$ 5,346,214,000
Number of domestic aircraft loan pools \| class	2
Commercial and agricultural
Loan and Lease Financings
Financing receivable originated during current fiscal year	$ 163,808,000	238,194,000
Financing receivable originated one year prior to current fiscal year	113,166,000	124,141,000
Financing receivable originated two years prior to current fiscal year	71,425,000	64,411,000
Financing receivable originated three years prior to current fiscal year	37,968,000	57,604,000
Financing receivable originated four years prior to current fiscal year	18,836,000	34,549,000
Financing receivable originated five years or more prior to current fiscal year	14,900,000	20,668,000
Revolving Loans	391,928,000	379,145,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	$ 812,031,000	918,712,000
Commercial and agricultural \| Minimum
Loan and Lease Financings
Expected life of underlying collateral	3 years
Commercial and agricultural \| Maximum
Loan and Lease Financings
Expected life of underlying collateral	7 years
Solar
Loan and Lease Financings
Financing receivable originated during current fiscal year	$ 109,393,000	159,244,000
Financing receivable originated one year prior to current fiscal year	113,276,000	43,211,000
Financing receivable originated two years prior to current fiscal year	36,751,000	87,475,000
Financing receivable originated three years prior to current fiscal year	78,330,000	19,703,000
Financing receivable originated four years prior to current fiscal year	19,219,000	34,889,000
Financing receivable originated five years or more prior to current fiscal year	24,194,000	3,780,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	381,163,000	348,302,000
Auto and light truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	527,371,000	341,933,000
Financing receivable originated one year prior to current fiscal year	158,874,000	134,461,000
Financing receivable originated two years prior to current fiscal year	67,899,000	80,047,000
Financing receivable originated three years prior to current fiscal year	35,811,000	28,824,000
Financing receivable originated four years prior to current fiscal year	12,738,000	16,690,000
Financing receivable originated five years or more prior to current fiscal year	5,424,000	1,820,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	$ 808,117,000	603,775,000
Auto and light truck \| Minimum
Loan and Lease Financings
Loan amortization period	18 months
Direct finance lease term	3 years
Auto and light truck \| Maximum
Loan and Lease Financings
Loan amortization period	4 years
Direct finance lease term	7 years
Medium and heavy duty truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	$ 158,296,000	92,252,000
Financing receivable originated one year prior to current fiscal year	66,533,000	68,354,000
Financing receivable originated two years prior to current fiscal year	43,711,000	57,967,000
Financing receivable originated three years prior to current fiscal year	31,980,000	23,210,000
Financing receivable originated four years prior to current fiscal year	10,053,000	12,419,000
Financing receivable originated five years or more prior to current fiscal year	3,289,000	5,538,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	$ 313,862,000	259,740,000
Medium and heavy duty truck \| Minimum
Loan and Lease Financings
Period of amortization to reach equity position in collateral	3 years
Medium and heavy duty truck \| Maximum
Loan and Lease Financings
Period of amortization to reach equity position in collateral	4 years
Aircraft
Loan and Lease Financings
Financing receivable originated during current fiscal year	$ 451,443,000	386,036,000
Financing receivable originated one year prior to current fiscal year	277,979,000	291,546,000
Financing receivable originated two years prior to current fiscal year	219,851,000	85,916,000
Financing receivable originated three years prior to current fiscal year	57,379,000	50,518,000
Financing receivable originated four years prior to current fiscal year	31,085,000	47,479,000
Financing receivable originated five years or more prior to current fiscal year	36,298,000	32,062,000
Revolving Loans	3,687,000	4,844,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	$ 1,077,722,000	898,401,000
Aircraft \| Minimum
Loan and Lease Financings
Loan amortization period	10 years
Aircraft \| Maximum
Loan and Lease Financings
Loan amortization period	15 years
Construction equipment
Loan and Lease Financings
Financing receivable originated during current fiscal year	$ 496,563,000	340,694,000
Financing receivable originated one year prior to current fiscal year	221,106,000	209,741,000
Financing receivable originated two years prior to current fiscal year	108,892,000	111,012,000
Financing receivable originated three years prior to current fiscal year	61,082,000	48,490,000
Financing receivable originated four years prior to current fiscal year	18,147,000	13,581,000
Financing receivable originated five years or more prior to current fiscal year	4,625,000	5,031,000
Revolving Loans	23,893,000	18,937,000
Revolving Loans Converted to Term	4,195,000	6,787,000
Amortized cost of loans and leases	938,503,000	754,273,000
Commercial real estate
Loan and Lease Financings
Financing receivable originated during current fiscal year	273,058,000	230,919,000
Financing receivable originated one year prior to current fiscal year	165,889,000	156,065,000
Financing receivable originated two years prior to current fiscal year	129,509,000	153,533,000
Financing receivable originated three years prior to current fiscal year	103,259,000	142,329,000
Financing receivable originated four years prior to current fiscal year	102,318,000	132,850,000
Financing receivable originated five years or more prior to current fiscal year	169,461,000	113,254,000
Revolving Loans	251,000	391,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	943,745,000	929,341,000
Residential real estate and home equity
Loan and Lease Financings
Financing receivable originated during current fiscal year	115,154,000	105,345,000
Financing receivable originated one year prior to current fiscal year	100,821,000	114,682,000
Financing receivable originated two years prior to current fiscal year	97,898,000	41,185,000
Financing receivable originated three years prior to current fiscal year	34,498,000	9,719,000
Financing receivable originated four years prior to current fiscal year	6,864,000	12,141,000
Financing receivable originated five years or more prior to current fiscal year	82,378,000	90,301,000
Revolving Loans	142,904,000	122,574,000
Revolving Loans Converted to Term	4,220,000	4,643,000
Amortized cost of loans and leases	584,737,000	500,590,000
Consumer
Loan and Lease Financings
Financing receivable originated during current fiscal year	74,406,000	58,903,000
Financing receivable originated one year prior to current fiscal year	34,684,000	24,414,000
Financing receivable originated two years prior to current fiscal year	12,973,000	17,074,000
Financing receivable originated three years prior to current fiscal year	7,428,000	8,314,000
Financing receivable originated four years prior to current fiscal year	2,989,000	2,296,000
Financing receivable originated five years or more prior to current fiscal year	704,000	701,000
Revolving Loans	18,098,000	21,378,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	$ 151,282,000	133,080,000
Specialty vehicle \| Minimum
Loan and Lease Financings
Loan amortization period	6 years
Specialty vehicle \| Maximum
Loan and Lease Financings
Loan amortization period	104 months
Credit Quality Grades 1-6 \| Commercial and agricultural
Loan and Lease Financings
Financing receivable originated during current fiscal year	$ 159,317,000	233,512,000
Financing receivable originated one year prior to current fiscal year	107,232,000	123,947,000
Financing receivable originated two years prior to current fiscal year	71,365,000	60,744,000
Financing receivable originated three years prior to current fiscal year	35,874,000	55,231,000
Financing receivable originated four years prior to current fiscal year	17,192,000	32,545,000
Financing receivable originated five years or more prior to current fiscal year	13,860,000	20,184,000
Revolving Loans	370,553,000	364,460,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	775,393,000	890,623,000
Credit Quality Grades 1-6 \| Solar
Loan and Lease Financings
Financing receivable originated during current fiscal year	109,393,000	159,244,000
Financing receivable originated one year prior to current fiscal year	113,276,000	42,073,000
Financing receivable originated two years prior to current fiscal year	35,660,000	81,593,000
Financing receivable originated three years prior to current fiscal year	72,652,000	18,979,000
Financing receivable originated four years prior to current fiscal year	18,518,000	34,889,000
Financing receivable originated five years or more prior to current fiscal year	20,654,000	3,780,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	370,153,000	340,558,000
Credit Quality Grades 1-6 \| Auto and light truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	521,399,000	331,105,000
Financing receivable originated one year prior to current fiscal year	155,508,000	122,709,000
Financing receivable originated two years prior to current fiscal year	62,063,000	72,580,000
Financing receivable originated three years prior to current fiscal year	32,975,000	24,965,000
Financing receivable originated four years prior to current fiscal year	10,946,000	11,814,000
Financing receivable originated five years or more prior to current fiscal year	3,476,000	901,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	786,367,000	564,074,000
Credit Quality Grades 1-6 \| Medium and heavy duty truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	158,296,000	92,252,000
Financing receivable originated one year prior to current fiscal year	66,533,000	68,354,000
Financing receivable originated two years prior to current fiscal year	43,711,000	57,967,000
Financing receivable originated three years prior to current fiscal year	31,980,000	23,210,000
Financing receivable originated four years prior to current fiscal year	10,053,000	12,419,000
Financing receivable originated five years or more prior to current fiscal year	3,274,000	5,265,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	313,847,000	259,467,000
Credit Quality Grades 1-6 \| Aircraft
Loan and Lease Financings
Financing receivable originated during current fiscal year	438,481,000	384,895,000
Financing receivable originated one year prior to current fiscal year	273,726,000	290,897,000
Financing receivable originated two years prior to current fiscal year	213,661,000	85,916,000
Financing receivable originated three years prior to current fiscal year	57,379,000	45,848,000
Financing receivable originated four years prior to current fiscal year	31,085,000	47,025,000
Financing receivable originated five years or more prior to current fiscal year	35,012,000	29,435,000
Revolving Loans	3,687,000	4,844,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	1,053,031,000	888,860,000
Credit Quality Grades 1-6 \| Construction equipment
Loan and Lease Financings
Financing receivable originated during current fiscal year	475,854,000	314,044,000
Financing receivable originated one year prior to current fiscal year	213,349,000	201,032,000
Financing receivable originated two years prior to current fiscal year	106,409,000	109,029,000
Financing receivable originated three years prior to current fiscal year	59,204,000	47,693,000
Financing receivable originated four years prior to current fiscal year	17,834,000	13,501,000
Financing receivable originated five years or more prior to current fiscal year	4,593,000	5,031,000
Revolving Loans	23,310,000	18,937,000
Revolving Loans Converted to Term	2,754,000	4,594,000
Amortized cost of loans and leases	903,307,000	713,861,000
Credit Quality Grades 1-6 \| Commercial real estate
Loan and Lease Financings
Financing receivable originated during current fiscal year	271,526,000	230,701,000
Financing receivable originated one year prior to current fiscal year	164,173,000	150,144,000
Financing receivable originated two years prior to current fiscal year	121,685,000	146,374,000
Financing receivable originated three years prior to current fiscal year	97,470,000	141,838,000
Financing receivable originated four years prior to current fiscal year	102,271,000	126,642,000
Financing receivable originated five years or more prior to current fiscal year	168,391,000	112,243,000
Revolving Loans	251,000	391,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	925,767,000	908,333,000
Credit Quality Grades 7-12
Loan and Lease Financings
Threshold value of loan or lease for evaluation of the appropriateness of the impairment reserve	250,000
Credit Quality Grades 7-12 \| Commercial and agricultural
Loan and Lease Financings
Financing receivable originated during current fiscal year	4,491,000	4,682,000
Financing receivable originated one year prior to current fiscal year	5,934,000	194,000
Financing receivable originated two years prior to current fiscal year	60,000	3,667,000
Financing receivable originated three years prior to current fiscal year	2,094,000	2,373,000
Financing receivable originated four years prior to current fiscal year	1,644,000	2,004,000
Financing receivable originated five years or more prior to current fiscal year	1,040,000	484,000
Revolving Loans	21,375,000	14,685,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	36,638,000	28,089,000
Credit Quality Grades 7-12 \| Solar
Loan and Lease Financings
Financing receivable originated during current fiscal year	0	0
Financing receivable originated one year prior to current fiscal year	0	1,138,000
Financing receivable originated two years prior to current fiscal year	1,091,000	5,882,000
Financing receivable originated three years prior to current fiscal year	5,678,000	724,000
Financing receivable originated four years prior to current fiscal year	701,000	0
Financing receivable originated five years or more prior to current fiscal year	3,540,000	0
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	11,010,000	7,744,000
Credit Quality Grades 7-12 \| Auto and light truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	5,972,000	10,828,000
Financing receivable originated one year prior to current fiscal year	3,366,000	11,752,000
Financing receivable originated two years prior to current fiscal year	5,836,000	7,467,000
Financing receivable originated three years prior to current fiscal year	2,836,000	3,859,000
Financing receivable originated four years prior to current fiscal year	1,792,000	4,876,000
Financing receivable originated five years or more prior to current fiscal year	1,948,000	919,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	21,750,000	39,701,000
Credit Quality Grades 7-12 \| Medium and heavy duty truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	0	0
Financing receivable originated one year prior to current fiscal year	0	0
Financing receivable originated two years prior to current fiscal year	0	0
Financing receivable originated three years prior to current fiscal year	0	0
Financing receivable originated four years prior to current fiscal year	0	0
Financing receivable originated five years or more prior to current fiscal year	15,000	273,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	15,000	273,000
Credit Quality Grades 7-12 \| Aircraft
Loan and Lease Financings
Financing receivable originated during current fiscal year	12,962,000	1,141,000
Financing receivable originated one year prior to current fiscal year	4,253,000	649,000
Financing receivable originated two years prior to current fiscal year	6,190,000	0
Financing receivable originated three years prior to current fiscal year	0	4,670,000
Financing receivable originated four years prior to current fiscal year	0	454,000
Financing receivable originated five years or more prior to current fiscal year	1,286,000	2,627,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	24,691,000	9,541,000
Credit Quality Grades 7-12 \| Construction equipment
Loan and Lease Financings
Financing receivable originated during current fiscal year	20,709,000	26,650,000
Financing receivable originated one year prior to current fiscal year	7,757,000	8,709,000
Financing receivable originated two years prior to current fiscal year	2,483,000	1,983,000
Financing receivable originated three years prior to current fiscal year	1,878,000	797,000
Financing receivable originated four years prior to current fiscal year	313,000	80,000
Financing receivable originated five years or more prior to current fiscal year	32,000	0
Revolving Loans	583,000	0
Revolving Loans Converted to Term	1,441,000	2,193,000
Amortized cost of loans and leases	35,196,000	40,412,000
Credit Quality Grades 7-12 \| Commercial real estate
Loan and Lease Financings
Financing receivable originated during current fiscal year	1,532,000	218,000
Financing receivable originated one year prior to current fiscal year	1,716,000	5,921,000
Financing receivable originated two years prior to current fiscal year	7,824,000	7,159,000
Financing receivable originated three years prior to current fiscal year	5,789,000	491,000
Financing receivable originated four years prior to current fiscal year	47,000	6,208,000
Financing receivable originated five years or more prior to current fiscal year	1,070,000	1,011,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	17,978,000	21,008,000
Performing \| Residential real estate and home equity
Loan and Lease Financings
Financing receivable originated during current fiscal year	115,154,000	105,345,000
Financing receivable originated one year prior to current fiscal year	100,690,000	114,682,000
Financing receivable originated two years prior to current fiscal year	97,205,000	41,185,000
Financing receivable originated three years prior to current fiscal year	34,498,000	9,706,000
Financing receivable originated four years prior to current fiscal year	6,864,000	11,720,000
Financing receivable originated five years or more prior to current fiscal year	81,653,000	89,646,000
Revolving Loans	142,724,000	122,281,000
Revolving Loans Converted to Term	4,115,000	4,555,000
Amortized cost of loans and leases	582,903,000	499,120,000
Performing \| Consumer
Loan and Lease Financings
Financing receivable originated during current fiscal year	74,258,000	58,866,000
Financing receivable originated one year prior to current fiscal year	34,619,000	24,307,000
Financing receivable originated two years prior to current fiscal year	12,924,000	17,031,000
Financing receivable originated three years prior to current fiscal year	7,375,000	8,284,000
Financing receivable originated four years prior to current fiscal year	2,977,000	2,263,000
Financing receivable originated five years or more prior to current fiscal year	692,000	697,000
Revolving Loans	18,098,000	21,378,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	150,943,000	132,826,000
Nonperforming \| Residential real estate and home equity
Loan and Lease Financings
Financing receivable originated during current fiscal year	0	0
Financing receivable originated one year prior to current fiscal year	131,000	0
Financing receivable originated two years prior to current fiscal year	693,000	0
Financing receivable originated three years prior to current fiscal year	0	13,000
Financing receivable originated four years prior to current fiscal year	0	421,000
Financing receivable originated five years or more prior to current fiscal year	725,000	655,000
Revolving Loans	180,000	293,000
Revolving Loans Converted to Term	105,000	88,000
Amortized cost of loans and leases	1,834,000	1,470,000
Nonperforming \| Consumer
Loan and Lease Financings
Financing receivable originated during current fiscal year	148,000	37,000
Financing receivable originated one year prior to current fiscal year	65,000	107,000
Financing receivable originated two years prior to current fiscal year	49,000	43,000
Financing receivable originated three years prior to current fiscal year	53,000	30,000
Financing receivable originated four years prior to current fiscal year	12,000	33,000
Financing receivable originated five years or more prior to current fiscal year	12,000	4,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	$ 339,000	$ 254,000

Loan and Lease Financings (De_3

Loan and Lease Financings (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
90 Days or More Past Due and Accruing	$ 54	$ 249
Total Accruing Loans	5,984,742	5,307,508
Nonaccrual	26,420	38,706
Total loans and leases	6,011,162	5,346,214
Increase in interest income	2,680	2,620	$ 3,490
Commercial and agricultural
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total Accruing Loans	811,167	916,659
Nonaccrual	864	2,053
Total loans and leases	812,031	918,712
Solar
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total Accruing Loans	381,163	348,302
Nonaccrual	0	0
Total loans and leases	381,163	348,302
Auto and light truck
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total Accruing Loans	793,964	579,605
Nonaccrual	14,153	24,170
Total loans and leases	808,117	603,775
Medium and heavy duty truck
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total Accruing Loans	313,847	259,467
Nonaccrual	15	273
Total loans and leases	313,862	259,740
Aircraft
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total Accruing Loans	1,077,151	897,752
Nonaccrual	571	649
Total loans and leases	1,077,722	898,401
Construction equipment
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total Accruing Loans	933,034	747,183
Nonaccrual	5,469	7,090
Total loans and leases	938,503	754,273
Commercial real estate
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total Accruing Loans	940,516	926,345
Nonaccrual	3,229	2,996
Total loans and leases	943,745	929,341
Residential real estate and home equity
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
90 Days or More Past Due and Accruing	49	245
Total Accruing Loans	582,952	499,365
Nonaccrual	1,785	1,225
Total loans and leases	584,737	500,590
Consumer
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
90 Days or More Past Due and Accruing	5	4
Total Accruing Loans	150,948	132,830
Nonaccrual	334	250
Total loans and leases	151,282	133,080
Current
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	5,980,206	5,301,658
Current \| Commercial and agricultural
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	810,223	916,659
Current \| Solar
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	381,163	348,302
Current \| Auto and light truck
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	793,610	579,605
Current \| Medium and heavy duty truck
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	313,845	259,467
Current \| Aircraft
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	1,075,865	894,092
Current \| Construction equipment
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	932,603	745,870
Current \| Commercial real estate
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	940,516	926,345
Current \| Residential real estate and home equity
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	582,053	498,854
Current \| Consumer
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	150,328	132,464
30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	2,929	2,987
30 to 59 Days Past Due \| Commercial and agricultural
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	944	0
30 to 59 Days Past Due \| Solar
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	0	0
30 to 59 Days Past Due \| Auto and light truck
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	353	0
30 to 59 Days Past Due \| Medium and heavy duty truck
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	0	0
30 to 59 Days Past Due \| Aircraft
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	223	1,130
30 to 59 Days Past Due \| Construction equipment
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	431	1,313
30 to 59 Days Past Due \| Commercial real estate
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	0	0
30 to 59 Days Past Due \| Residential real estate and home equity
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	562	212
30 to 59 Days Past Due \| Consumer
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	416	332
60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	1,553	2,614
60 to 89 Days Past Due \| Commercial and agricultural
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	0	0
60 to 89 Days Past Due \| Solar
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	0	0
60 to 89 Days Past Due \| Auto and light truck
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	1	0
60 to 89 Days Past Due \| Medium and heavy duty truck
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	2	0
60 to 89 Days Past Due \| Aircraft
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	1,063	2,530
60 to 89 Days Past Due \| Construction equipment
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	0	0
60 to 89 Days Past Due \| Commercial real estate
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	0	0
60 to 89 Days Past Due \| Residential real estate and home equity
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	288	54
60 to 89 Days Past Due \| Consumer
Amortized cost of loans and leases, segregated by class, with delinquency aging and nonaccrual status
Total loans and leases	$ 199	$ 30

Loan and Lease Financings (De_4

Loan and Lease Financings (Details 4) $ in Thousands	12 Months Ended
Loan and Lease Financings (Details 4) $ in Thousands	Dec. 31, 2022 USD ($) modification default	Dec. 31, 2021 USD ($) modification item	Dec. 31, 2020 USD ($) modification default
Loans and leases classified as TDR
Financing Receivable, Troubled Debt Restructuring	$ 3,640	$ 7,061
Financing Receivable, Modifications, Number of Contracts \| modification	0	1	2
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 5,729	$ 10,733
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts \| item		0
Troubled debt restructured loans and leases which had payment defaults within twelve months following modification
Default threshold	90 days
Interest Rate Below Market Reduction
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts	0	1	2
Performing
Loans and leases classified as TDR
Financing Receivable, Troubled Debt Restructuring	$ 0	$ 319
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	0
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 0
Nonperforming
Loans and leases classified as TDR
Financing Receivable, Troubled Debt Restructuring	$ 3,640	$ 6,742
Financing Receivable, Modifications, Number of Contracts \| modification	0	1	2
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 5,729	$ 10,733
Commercial and agricultural \| Performing
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	0
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 0
Commercial and agricultural \| Nonperforming
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	0
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 0
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts \| default			1
Financing Receivable, Troubled Debt Restructuring, Subsequent Default			$ 410
Solar \| Performing
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	0
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 0
Solar \| Nonperforming
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	0
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 0
Auto and light truck \| Performing
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	0
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 0
Auto and light truck \| Nonperforming
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	0
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 0
Medium and heavy duty truck \| Performing
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	0
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 0
Medium and heavy duty truck \| Nonperforming
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	0
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 0
Aircraft \| Performing
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	0
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 0
Aircraft \| Nonperforming
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	1
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 828
Construction equipment \| Performing
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	0
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 0
Construction equipment \| Nonperforming
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	1	1
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 5,729	$ 9,905
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts \| default	1
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 3,070
Commercial real estate \| Performing
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	0
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 0
Commercial real estate \| Nonperforming
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	0
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 0
Residential real estate and home equity \| Performing
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	0
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 0
Residential real estate and home equity \| Nonperforming
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	0
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 0
Consumer \| Performing
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	0
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 0
Consumer \| Nonperforming
Loans and leases classified as TDR
Financing Receivable, Modifications, Number of Contracts \| modification	0	0	0
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0	$ 0

Allowance for Credit Losses (De

Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Changes in allowance for loan and lease losses
Balance at the beginning of the period	$ 127,492	$ 140,654	$ 111,254
Charge-offs	3,409	12,523	13,974
Recoveries	1,940	3,664	4,789
Net charge-offs (recoveries)	1,469	8,859	9,185
Provision (recovery of provision)	13,245	(4,303)	36,001
Balance at the end of the period	139,268	127,492	140,654
Adjustment
Changes in allowance for loan and lease losses
Balance at the beginning of the period			2,584
Adjusted Balance
Changes in allowance for loan and lease losses
Balance at the beginning of the period			113,838
Commercial and agricultural
Changes in allowance for loan and lease losses
Balance at the beginning of the period	15,409	16,680	20,926
Charge-offs	625	2,930	903
Recoveries	56	812	663
Net charge-offs (recoveries)	569	2,118	240
Provision (recovery of provision)	(205)	847	(3,067)
Balance at the end of the period	14,635	15,409	16,680
Commercial and agricultural \| Adjustment
Changes in allowance for loan and lease losses
Balance at the beginning of the period			(939)
Commercial and agricultural \| Adjusted Balance
Changes in allowance for loan and lease losses
Balance at the beginning of the period			19,987
Solar
Changes in allowance for loan and lease losses
Balance at the beginning of the period	6,585	5,549	2,745
Charge-offs	0	0	0
Recoveries	0	0	0
Net charge-offs (recoveries)	0	0	0
Provision (recovery of provision)	632	1,036	2,520
Balance at the end of the period	7,217	6,585	5,549
Solar \| Adjustment
Changes in allowance for loan and lease losses
Balance at the beginning of the period			284
Solar \| Adjusted Balance
Changes in allowance for loan and lease losses
Balance at the beginning of the period			3,029
Auto and light truck
Changes in allowance for loan and lease losses
Balance at the beginning of the period	19,624	28,926	14,400
Charge-offs	118	7,797	7,107
Recoveries	417	1,316	499
Net charge-offs (recoveries)	(299)	6,481	6,608
Provision (recovery of provision)	(1,289)	(2,821)	22,437
Balance at the end of the period	18,634	19,624	28,926
Auto and light truck \| Adjustment
Changes in allowance for loan and lease losses
Balance at the beginning of the period			(1,303)
Auto and light truck \| Adjusted Balance
Changes in allowance for loan and lease losses
Balance at the beginning of the period			13,097
Medium and heavy duty truck
Changes in allowance for loan and lease losses
Balance at the beginning of the period	6,015	6,400	4,612
Charge-offs	0	0	15
Recoveries	0	0	18
Net charge-offs (recoveries)	0	0	(3)
Provision (recovery of provision)	1,551	(385)	(629)
Balance at the end of the period	7,566	6,015	6,400
Medium and heavy duty truck \| Adjustment
Changes in allowance for loan and lease losses
Balance at the beginning of the period			2,414
Medium and heavy duty truck \| Adjusted Balance
Changes in allowance for loan and lease losses
Balance at the beginning of the period			7,026
Aircraft
Changes in allowance for loan and lease losses
Balance at the beginning of the period	33,628	34,053	31,058
Charge-offs	0	0	855
Recoveries	785	687	1,800
Net charge-offs (recoveries)	(785)	(687)	(945)
Provision (recovery of provision)	6,680	(1,112)	1,566
Balance at the end of the period	41,093	33,628	34,053
Aircraft \| Adjustment
Changes in allowance for loan and lease losses
Balance at the beginning of the period			484
Aircraft \| Adjusted Balance
Changes in allowance for loan and lease losses
Balance at the beginning of the period			31,542
Construction equipment
Changes in allowance for loan and lease losses
Balance at the beginning of the period	19,673	19,166	14,120
Charge-offs	1,114	856	4,090
Recoveries	17	473	1,415
Net charge-offs (recoveries)	1,097	383	2,675
Provision (recovery of provision)	5,463	890	7,349
Balance at the end of the period	24,039	19,673	19,166
Construction equipment \| Adjustment
Changes in allowance for loan and lease losses
Balance at the beginning of the period			372
Construction equipment \| Adjusted Balance
Changes in allowance for loan and lease losses
Balance at the beginning of the period			14,492
Commercial real estate
Changes in allowance for loan and lease losses
Balance at the beginning of the period	19,691	22,758	18,350
Charge-offs	538	0	37
Recoveries	45	19	58
Net charge-offs (recoveries)	493	(19)	(21)
Provision (recovery of provision)	(1,767)	(3,086)	5,036
Balance at the end of the period	17,431	19,691	22,758
Commercial real estate \| Adjustment
Changes in allowance for loan and lease losses
Balance at the beginning of the period			(649)
Commercial real estate \| Adjusted Balance
Changes in allowance for loan and lease losses
Balance at the beginning of the period			17,701
Residential real estate and home equity
Changes in allowance for loan and lease losses
Balance at the beginning of the period	5,084	5,374	3,609
Charge-offs	284	228	74
Recoveries	160	16	33
Net charge-offs (recoveries)	124	212	41
Provision (recovery of provision)	1,518	(78)	118
Balance at the end of the period	6,478	5,084	5,374
Residential real estate and home equity \| Adjustment
Changes in allowance for loan and lease losses
Balance at the beginning of the period			1,688
Residential real estate and home equity \| Adjusted Balance
Changes in allowance for loan and lease losses
Balance at the beginning of the period			5,297
Consumer
Changes in allowance for loan and lease losses
Balance at the beginning of the period	1,783	1,748	1,434
Charge-offs	730	712	893
Recoveries	460	341	303
Net charge-offs (recoveries)	270	371	590
Provision (recovery of provision)	662	406	671
Balance at the end of the period	$ 2,175	$ 1,783	1,748
Consumer \| Adjustment
Changes in allowance for loan and lease losses
Balance at the beginning of the period			233
Consumer \| Adjusted Balance
Changes in allowance for loan and lease losses
Balance at the beginning of the period			$ 1,667

Allowance for Credit Losses (_2

Allowance for Credit Losses (Details 2) - Unfunded Loan Commitment - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Changes in allowance for loan and lease losses
Balance, beginning of year	$ 4,196	$ 4,499	$ 3,172
(Recovery of) provision on unfunded loan commitments	1,420	(303)	550
Balance, end of year	5,616	4,196	4,499
Adjustment
Changes in allowance for loan and lease losses
Balance, beginning of year	0	0	777
Balance, end of year		0	0
Adjusted Balance
Changes in allowance for loan and lease losses
Balance, beginning of year	$ 4,196	4,499	3,949
Balance, end of year		$ 4,196	$ 4,499

Lease Investments (Details)

Lease Investments (Details) - USD ($) $ in Thousands	12 Months Ended
Lease Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Minimum lease payments	$ 224,816	$ 172,017
Estimated unguaranteed residual values	0	0
Less: unearned income	(50,633)	(22,552)
Net investment in direct finance lease financing	174,183	149,465
Gross investment in operating lease financing	60,999	95,046
Accumulated depreciation	(29,299)	(46,613)
Net investment in operating lease financings	31,700	48,433
Carrying amount of residual assets covered by residual value guarantees	29,650	27,330
Interest income on lease receivable	9,008	6,634	$ 8,258
Income related to lease payments	12,274	16,647	23,380
Depreciation - leased equipment	10,023	13,694	20,203
Income from reimbursements for personal property tax payments on operating leased equipment	350	460	610
Expense for payments of personal property taxes on operating leased equipment	$ 350	$ 460	$ 610

Lease Investments (Details 2)

Lease Investments (Details 2) - USD ($) $ in Thousands	12 Months Ended
Lease Investments (Details 2) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Direct financing minimum lease payments receivable
2023	$ 48,011
2024	32,764
2025	31,472
2026	25,890
2027	23,221
Thereafter	63,458
Total	224,816	$ 172,017
Operating minimum lease payments receivable
2023	9,192
2024	5,526
2025	3,071
2026	1,489
2027	599
Thereafter	223
Total	20,100
Impairment charges on leased equipment	$ 60

Premises and Equipment (Details

Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Premises and equipment
Total premises and equipment	$ 117,764	$ 116,175
Accumulated depreciation and amortization	(72,991)	(69,137)
Net premises and equipment	44,773	47,038
Depreciation and amortization of properties and equipment	4,596	5,093	$ 5,673
Land
Premises and equipment
Total premises and equipment	15,500	15,500
Buildings and improvements
Premises and equipment
Total premises and equipment	61,860	61,257
Furniture and equipment
Premises and equipment
Total premises and equipment	$ 40,404	$ 39,418

Mortgage Servicing Rights (Deta

Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Expected amortization expense on mortgage servicing rights
2023	$ 670
2024	580
2025	500
2026	420
2027	360
Residential mortgage loans
Mortgage Servicing Rights
Unpaid principal balance	$ 848,960	$ 883,900	$ 838,450

Mortgage Servicing Rights (De_2

Mortgage Servicing Rights (Details 2) - Residential mortgage loans - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Changes in mortgage servicing rights
Balance at the beginning of the period	$ 4,671	$ 4,616
Additions	753	2,172
Amortization	(1,287)	(2,117)
Sales	0	0
Carrying value before valuation allowance at end of year	4,137	4,671	$ 4,616
Changes in valuation allowance
Balance at the beginning of the period	0	(812)
Impairment recoveries	0	812
Balance at the end of the period	0	0	(812)
Net carrying value of mortgage servicing rights at end of period	4,137	4,671
Fair value of mortgage servicing rights at end of period	8,007	5,640
Fair value of mortgage servicing rights exceeding the carrying value	3,870
Funds held in trust	8,570	13,760
Mortgage loan contractual servicing fees	$ 2,790	$ 3,170	$ 3,130

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 83,870	$ 83,870
Other intangible assets	40	60
Accumulated amortization on intangible assets	100	80
Intangible asset amortization	20	$ 20	$ 20
Expected amortization on other intangible assets
2023	20
2024	20
2025	0
2026	0
2027	$ 0

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill (Details 2) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Core deposit intangibles and other intangible assets
Less: accumulated amortization	$ (100)	$ (80)
Net carrying amount	40	60
Other intangibles
Core deposit intangibles and other intangible assets
Gross carrying amount	146	146
Less: accumulated amortization	(106)	(86)
Net carrying amount	$ 40	$ 60

Deposits (Details)

Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Amount of certificates of deposit and other time deposits of $250,000 or more outstanding
Under 3 months	$ 149,632
4-6 months	71,595
7-12 months	175,229
Over 12 months	203,911
Total	600,367	$ 290,890
Maturities of time deposits, including both private and public funds
2023	796,947
2024	154,656
2025	82,635
2026	51,355
2027	33,229
Thereafter	21,637
Total	$ 1,140,459	$ 884,137

Borrowed Funds and Mandatoril_3

Borrowed Funds and Mandatorily Redeemable Securities (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) note	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Borrowed funds and mandatorily redeemable securities
Total long-term debt and mandatorily redeemable securities	$ 46,555	$ 71,251
Annual maturities of long-term debt
2023	3,160
2024	12,290
2025	1,250
2026	11,140
2027	680
Thereafter	18,040
Mandatorily redeemable securities
Interest expense	(350)	1,790	$ 2,140
Asset pledged as collateral
Borrowed funds and mandatorily redeemable securities
Collateralized securities for Federal Home Loan Bank borrowings	29,730
Securities subject to mandatory redemption
Borrowed funds and mandatorily redeemable securities
Mandatorily redeemable securities	17,905	20,598
Federal Home Loan Bank borrowings
Borrowed funds and mandatorily redeemable securities
Long-term debt	$ 21,315	44,150
Annual maturities of long-term debt
Number of Federal Home Loan Bank borrowings, fixed rate notes \| note	8
Other long-term debt
Borrowed funds and mandatorily redeemable securities
Long-term debt	$ 7,335	$ 6,503
Minimum \| Federal Home Loan Bank borrowings
Borrowed funds and mandatorily redeemable securities
Interest rate on Federal Home Loan Bank borrowings (as a percent)	1.04%
Maximum \| Federal Home Loan Bank borrowings
Borrowed funds and mandatorily redeemable securities
Interest rate on Federal Home Loan Bank borrowings (as a percent)	2.80%

Borrowed Funds and Mandatoril_4

Borrowed Funds and Mandatorily Redeemable Securities (Details 2) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Short-term borrowings:
Short-term borrowings	$ 215,529	$ 200,027
Short-term borrowings, weighted average interest rate	1.39%	0.05%
Federal funds purchased
Short-term borrowings:
Short-term borrowings	$ 0	$ 0
Short-term borrowings, weighted average interest rate	0%	0%
Security repurchase agreements
Short-term borrowings:
Short-term borrowings	$ 141,432	$ 194,727
Short-term borrowings, weighted average interest rate	0.05%	0.05%
Commercial paper
Short-term borrowings:
Short-term borrowings	$ 3,096	$ 3,967
Short-term borrowings, weighted average interest rate	0.03%	0.04%
Federal Home Loan Bank advances
Short-term borrowings:
Short-term borrowings	$ 70,000	$ 0
Short-term borrowings, weighted average interest rate	4.16%	0%
Other short-term borrowings
Short-term borrowings:
Short-term borrowings	$ 1,001	$ 1,333
Short-term borrowings, weighted average interest rate	0%	0%

Variable Interest Entities (Det

Variable Interest Entities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Subordinated notes
Federal tax credits recognized in tax expense	$ 2,060	$ 2,020	$ 1,720
Investment tax credits	9,830	3,530	$ 31,080
Investment carrying amount	8,339,416	8,096,289
Unfunded capital and other commitments	7,415,650	7,126,825
Unconsolidated maximum exposure to loss	45,020	50,319
Variable interest entity, primary beneficiary
Subordinated notes
Investment carrying amount	66,260	59,080
Unfunded capital and other commitments	0	0
Variable interest entity, not primary beneficiary
Subordinated notes
Investment carrying amount	70,887	35,968
Unfunded capital and other commitments	$ 64,520	$ 29,670

Variable Interest Entities (D_2

Variable Interest Entities (Details 2) $ in Thousands		12 Months Ended
Variable Interest Entities (Details 2) $ in Thousands		Dec. 31, 2022 USD ($) trust	Dec. 31, 2021 USD ($)
Variable Interest Entities
Number of trusts sponsored \| trust		1
Percentage of ownership interest		100%
Subordinated notes
Amount of subordinated notes		$ 58,764	$ 58,764
June 2007 issuance
Subordinated notes
Amount of subordinated notes		$ 41,238
Interest Rate (as a percent)	[1]	7.22%
Maturity date of subordinated notes		Jun. 15, 2037
August 2007 issuance
Subordinated notes
Amount of subordinated notes		$ 17,526
Interest Rate (as a percent)	[2]	6.25%
Maturity date of subordinated notes		Sep. 15, 2037
London Interbank Offered Rate (LIBOR) \| August 2007 issuance
Subordinated notes
Basis Spread on Variable Rate (as a percent)		1.48%

[1]Fixed rate through life of debt.[2]3-Month LIBOR +1.48% through remaining life of debt.

Earnings Per Share (Details)

Earnings Per Share (Details) - shares	12 Months Ended
Earnings Per Share (Details) - shares	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stock options
Earnings Per Share
Antidilutive securities (in shares)	0	0	0

Earnings Per Share (Details 2)

Earnings Per Share (Details 2) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Distributed earnings allocated to common stock	$ 31,095	$ 30,369	$ 28,859
Undistributed earnings allocated to common stock	88,419	87,237	52,044
Net earnings allocated to common stock	119,514	117,606	80,903
Net earnings allocated to participating securities	995	928	534
Net income available to common shareholders	$ 120,509	$ 118,534	$ 81,437
Weighted average shares outstanding for basic earnings per common share	24,687,324	25,038,127	25,525,154
Dilutive effect of stock compensation (in shares)	0	0	0
Weighted average shares outstanding for diluted earnings per common share	24,687,324	25,038,127	25,525,154
Basic earnings per common share (in dollars per share)	$ 4.84	$ 4.70	$ 3.17
Diluted earnings per common share (in dollars per share)	$ 4.84	$ 4.70	$ 3.17

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Loss[Line Items]
(Losses) gains on investment securities available-for-sale	$ (184)	$ (680)	$ 279
Income before income taxes	156,787	154,885	106,341
Income tax expense	(36,255)	(36,328)	(24,880)
Net income	120,532	118,557	$ 81,461
Unrealized gains and losses on available-for-sale securities \| Amount reclassified from Accumulated Other Comprehensive Loss
Reclassification Adjustment out of Accumulated Other Comprehensive Loss[Line Items]
(Losses) gains on investment securities available-for-sale	(184)	(680)
Income before income taxes	(184)	(680)
Income tax expense	43	160
Net income	$ (141)	$ (520)

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - Employee Stock Ownership and Profit Sharing Plan $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) h shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($)
Employee benefit plans
Minimum service period required to participate in Plan	90 days
Percentage of employee's deferred compensation up to which the employer matches (as a percent)	4%
Employer's matching contribution on the next 2% of employee contribution (as a percent)	50%
Employee contribution after matching contribution of employer (as a percent)	2%
Employee's eligible compensation on which employer pays fixed contribution (as a percent)	2%
Common stock held in relation to employee benefit plans (in shares) \| shares	730,151	751,447
Minimum service period required to be eligible to get employer's contribution	5 years
Minimum working hours required per year to be eligible to get employer's contribution \| h	1,000
Employee deferral that is always vested (as a percent)	100%
Contribution expense \| $	$ 6,220	$ 6,310	$ 5,700

Stock Based Compensation (Detai

Stock Based Compensation (Details)	12 Months Ended
Stock Based Compensation (Details)	Dec. 31, 2022 USD ($) plan $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares
Stock-based compensation
Number of stock-based employee compensation plans \| plan	4
Number of executive stock award plans \| plan	3
Total fair value of share awards vested \| $	$ 4,080,000	$ 3,450,000	$ 2,670,000
Shares Available for Grant
Balance at the beginning of the period (in shares)	560,755	577,208	664,502
Granted (in shares)	(127,198)	(79,072)	(147,576)
Forfeited (in shares)	9,131	250	49
Balance at the end of the period (in shares)	730,191	560,755	577,208
Stock award plans
Additional disclosures
Stock-based compensation expense \| $	$ 3,590,000	$ 4,210,000	$ 3,290,000
Income tax benefit due to stock-based compensation expenses \| $	830,000	$ 990,000	$ 770,000
Unrecognized stock-based compensation expense \| $	$ 7,900,000
Weighted-average period for unrecognized compensation cost to recognize	3 years 1 month 9 days
Executive Incentive Plan
Shares Available for Grant
Shares authorized	287,503	62,369	60,233
Additional disclosures
Vesting period	5 years
1982 Restricted Stock Plan \| Maximum
Additional disclosures
Vesting period	10 years
Strategic Deployment Incentive Plan
Additional disclosures
Vesting period	5 years
Stock options
Additional disclosures
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	0	0
Stock-based compensation expense \| $	$ 0	$ 0	$ 0
Stock options \| Maximum
Additional disclosures
Contractual life	10 years
Non-vested stock awards outstanding
Number of Shares
Stock awards outstanding at the beginning of the period (in shares)	274,146	291,494	218,991
Granted (in shares)	127,198	79,072	147,576
Vested (in shares)	(97,640)	(92,622)	(74,203)
Forfeited (in shares)	(15,179)	(3,798)	(870)
Stock awards outstanding at the end of the period (in shares)	288,525	274,146	291,494
Weighted-Average Grant-Date Fair Value
Stock awards outstanding at the beginning of the period (in dollars per share) \| $ / shares	$ 34.86	$ 33.71	$ 29.60
Granted (in dollars per share) \| $ / shares	40.44	36.22	37.41
Vested (in dollars per share) \| $ / shares	34.92	32.53	28.95
Forfeited (in dollars per share) \| $ / shares	36.53	32.12	31.82
Stock awards outstanding at the end of the period (in dollars per share) \| $ / shares	$ 37.03	34.86	33.71
Employee Stock Purchase Plan
Additional disclosures
Required period of service	2 years
Maximum base rate of employee basic pay to purchase any dollar amount of stock (as a percent)	25%
Maximum stock which can be purchased by employee per year \| $	$ 25,000
Purchases price (in dollars per share) \| $ / shares	$ 46.78	$ 49.98	$ 34.35
Percentage of the premium fair market value of common stock as on the offering date or the market value as on the purchase date (as a percent)			1.78%
Percentage of the discount fair market value of common stock as on the offering date or the market value as on the purchase date (as a percent)	(0.34%)	(0.42%)
ESPP offering through June 2022
Additional disclosures
Value of shares to be purchased \| $	$ 209,200
Stock value of most recent offering (in dollars per share ) \| $ / shares	$ 46.78

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current:
Federal	$ 38,779	$ 16,346	$ 42,411
State	6,937	4,586	6,629
Total current	45,716	20,932	49,040
Deferred:
Federal	(7,936)	14,206	(21,865)
State	(1,525)	1,190	(2,295)
Total deferred	(9,461)	15,396	(24,160)
Total provision	$ 36,255	$ 36,328	$ 24,880
Statutory federal income tax (as a percent)	21%	21%	21%

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)	12 Months Ended
Income Taxes (Details 2) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reasons for the difference between income tax expense and statutory federal income tax
Statutory federal income tax	$ 32,925,000	$ 32,526,000	$ 22,332,000
Tax-exempt interest income	(504,000)	(373,000)	(439,000)
State taxes, net of federal income tax benefit	4,275,000	4,563,000	3,424,000
Other	(441,000)	(388,000)	(437,000)
Total provision	$ 36,255,000	$ 36,328,000	$ 24,880,000
Reasons for the difference between income tax expense rate and statutory federal income tax rate
Statutory federal income tax (as a percent)	21%	21%	21%
Tax-exempt interest income (as a percent)	(0.30%)	(0.20%)	(0.40%)
State taxes, net of federal income tax benefit (as a percent)	2.70%	2.90%	3.20%
Other (as a percent)	(0.30%)	(0.20%)	(0.40%)
Total income tax expense (benefit) (as a percent)	23.10%	23.50%	23.40%
Deferred tax assets:
Reserve for loan and lease losses	$ 33,237,000	$ 32,431,000
Operating lease liability	4,728,000	5,145,000
Accruals for employee benefits	3,752,000	3,837,000
Capitalized loan costs	0	15,000
Net unrealized losses on securities available-for-sale	46,353,000	3,128,000
Other	426,000	1,015,000
Total deferred tax assets	88,496,000	45,571,000
Deferred tax liabilities:
Differing depreciable bases in premises and leased equipment	7,373,000	10,796,000
Right of use assets - leases	5,037,000	5,315,000
Differing bases in assets related to acquisitions	4,305,000	4,219,000
Tax advantaged partnerships	3,823,000	9,502,000
Other	245,000	713,000
Total deferred tax liabilities	20,783,000	30,545,000
Deferred Tax Assets, Net, Total	67,713,000	15,026,000
Valuation allowance for deferred tax assets	0	0
Investment securities available-for-sale
Reasons for the difference between income tax expense and statutory federal income tax
Total provision	$ (39,000)	$ (164,000)	$ 67,000

Contingent Liabilities, Commi_3

Contingent Liabilities, Commitments, and Financial Instruments with Off-Balance-Sheet Risk (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Liability for repurchases	$ 170	$ 220
Operating lease right of use assets	20,916	22,071
Operating lease liabilities	$ 19,634	$ 21,364
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Accrued income and other assets	Accrued income and other assets
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Accrued expenses and other liabilities	Accrued expenses and other liabilities

Contingent Liabilities, Commi_4

Contingent Liabilities, Commitments, and Financial Instruments with Off-Balance-Sheet Risk (Details 2) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) Rate	Dec. 31, 2021 USD ($) Rate	Dec. 31, 2020 USD ($) Rate
Commitments and Contingencies Disclosure [Abstract]
Operating lease cost	$ 3,527	$ 3,480	$ 3,472
Short-term lease cost	18	20	8
Variable lease cost (recovery of cost)	8	0	(30)
Total operating lease cost	3,553	3,500	$ 3,450
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2023	3,862
2024	3,281
2025	2,913
2026	2,620
2027	2,091
Thereafter	6,398
Total lease payments	21,165
Imputed interest	(1,531)
Operating lease liabilities	$ 19,634	$ 21,364
Weighted average remaining lease term	9 years 3 months 29 days	9 years 3 months 21 days	10 years 2 months 1 day
Weighted average discount rate \| Rate	1.85%	1.75%	1.80%
Operating cash flows from operating leases	$ 4,298	$ 4,006	$ 3,794
Number of significant lessee leases that have not yet commenced	0

Contingent Liabilities, Commi_5

Contingent Liabilities, Commitments, and Financial Instruments with Off-Balance-Sheet Risk (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Commitments to extend credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet instruments	$ 1,234,866	$ 1,148,984
Standby letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet instruments	$ 18,055	24,657
Standby letters of credit \| Minimum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Letter of credit term	2 months
Standby letters of credit \| Maximum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Letter of credit term	1 year
Commercial and similar letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet instruments	$ 2,368	$ 8,531
Commercial and similar letters of credit \| Minimum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Letter of credit term	2 months
Commercial and similar letters of credit \| Maximum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Letter of credit term	6 months

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Non-hedging derivative financial instruments
Derivative Financial Instruments
Derivative, Notional Amount	$ 887,988	$ 1,101,807
Asset derivatives, Fair value	24,929	21,187
Liability derivatives, Fair value	25,307	21,183
Interest rate swap contracts
Derivative Financial Instruments
Asset derivatives, Fair value	24,838	24,436
Interest rate swap contracts \| Non-hedging derivative financial instruments
Derivative Financial Instruments
Derivative, Notional Amount	881,600	1,064,721
Asset derivatives, Fair value	24,838	20,735
Liability derivatives, Fair value	25,307	21,172
Loan commitments \| Non-hedging derivative financial instruments
Derivative Financial Instruments
Derivative, Notional Amount	2,638	15,086
Asset derivatives, Fair value	67	452
Liability derivatives, Fair value	0	0
Forward contracts - mortgage loan \| Non-hedging derivative financial instruments
Derivative Financial Instruments
Derivative, Notional Amount	3,750	22,000
Asset derivatives, Fair value	24	0
Liability derivatives, Fair value	$ 0	$ 11

Derivative Financial Instrume_4

Derivative Financial Instruments (Details 2) - Non-hedging derivative financial instruments - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative Financial Instruments
Gain (loss)	$ (299)	$ 245	$ 1,279
Interest rate swap contracts \| Other expense
Derivative Financial Instruments
Gain (loss)	(32)	591	(650)
Interest rate swap contracts \| Other income
Derivative Financial Instruments
Gain (loss)	83	410	879
Loan commitments
Derivative Financial Instruments
Gain (loss)	(385)	(1,035)	1,302
Forward contracts - mortgage loan
Derivative Financial Instruments
Gain (loss)	$ 35	$ 279	$ (252)

Derivative Financial Instrume_5

Derivative Financial Instruments (Details 3) - Interest rate swap contracts - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Offsetting Assets
Gross Amounts of Recognized Assets	$ 24,838	$ 24,436
Gross Amounts Offset in the Statement of Financial Condition	0	3,701
Net Amounts of Assets Presented in the Statement of Financial Condition	24,838	20,735
Gross Amounts Not Offset in the Statement of Financial Condition
Financial instruments	0	0
Cash collateral received	25,295	0
Net Amount	$ (457)	$ 20,735

Derivative Financial Instrume_6

Derivative Financial Instruments (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Offsetting Liabilities [Line Items]
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	$ 166,739	$ 219,600
Gross Amounts Offset in the Statement of Financial Condition	0	3,701
Net Amounts Offset in the Statement of Financial Condition	$ 166,739	$ 215,899
Derivative Liability Statement Of Financial Position Extensible Enumeration Not Disclosed Flag	Net Amounts of Liabilities Presented in the Statement of Financial Condition	Net Amounts of Liabilities Presented in the Statement of Financial Condition
Gross Amounts Not Offset in the Statement of Financial Condition
Financial Instruments	$ 141,432	$ 215,225
Cash Collateral Pledged	0	0
Net Amount	25,307	674
Interest rate swap contracts
Offsetting Liabilities [Line Items]
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	25,307	24,873
Gross Amounts Offset in the Statement of Financial Condition	0	3,701
Net Amounts Offset in the Statement of Financial Condition	25,307	21,172
Derivative, Collateral, Right to Reclaim Securities	0	20,498
Gross Amounts Not Offset in the Statement of Financial Condition
Cash Collateral Pledged	0	0
Net Amount	25,307	674
Repurchase agreements
Offsetting Liabilities [Line Items]
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	141,432	194,727
Net Amounts Offset in the Statement of Financial Condition	141,432	194,727
Gross Amounts Not Offset in the Statement of Financial Condition
Financial Instruments	$ 141,432	$ 194,727

Derivative Financial Instrume_7

Derivative Financial Instruments (Details 5) - U.S. Treasury and Federal agencies securities - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Overnight and Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements	$ 138,080	$ 191,470
Up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Repurchase agreements	$ 3,350	$ 3,260

Regulatory Matters (Details)

Regulatory Matters (Details) $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Total Capital (to Risk-Weighted Assets):
Actual Amount	$ 1,137,984	$ 1,034,605
Actual Ratio (as a percent)	0.1610	0.1676
Minimum Capital Adequacy Amount	$ 565,314	$ 493,751
Minimum Capital Adequacy Ratio (as a percent)	0.0800	0.0800
Minimum Capital Adequacy with Capital Buffer Amount	$ 741,975	$ 648,048
Minimum Capital Adequacy with Capital Buffer Ratio (as a percent)	0.1050	0.1050
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 706,643	$ 617,189
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	0.1000	0.1000
Tier I Capital (to Risk-Weighted Assets):
Actual Amount	$ 1,048,955	$ 956,783
Actual Ratio (as a percent)	0.1484	0.1550
Minimum Capital Adequacy Amount	$ 423,986	$ 370,313
Minimum Capital Adequacy Ratio (as a percent)	0.0600	0.0600
Minimum Capital Adequacy with Capital Buffer Amount	$ 600,647	$ 524,611
Minimum Capital Adequacy with Capital Buffer Ratio (as a percent)	0.0850	0.0850
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 565,314	$ 493,751
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	0.0800	0.0800
Common Equity Tier 1 Capital (to Risk-Weighted Assets):
Actual Amount	$ 932,257	$ 846,573
Actual Ratio (as a percent)	0.1319	0.1372
Minimum Capital Adequacy Amount	$ 317,989	$ 277,735
Minimum Capital Adequacy Ratio (as a percent)	0.0450	0.0450
Minimum Capital Adequacy with Capital Buffer Amount	$ 494,650	$ 432,032
Minimum Capital Adequacy with Capital Buffer Ratio (as a percent)	0.0700	0.0700
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 459,318	$ 401,173
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	0.0650	0.0650
Tier I Capital (to Average Assets):
Actual Amount	$ 1,048,955	$ 956,783
Actual Ratio (as a percent)	0.1263	0.1189
Minimum Capital Adequacy Amount	$ 332,287	$ 321,925
Minimum Capital Adequacy Ratio (as a percent)	0.0400	0.0400
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 415,359	$ 402,407
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	0.0500	0.0500
1st Source Bank
Total Capital (to Risk-Weighted Assets):
Actual Amount	$ 1,060,292	$ 969,228
Actual Ratio (as a percent)	0.1501	0.1571
Minimum Capital Adequacy Amount	$ 565,119	$ 493,412
Minimum Capital Adequacy Ratio (as a percent)	0.0800	0.0800
Minimum Capital Adequacy with Capital Buffer Amount	$ 741,718	$ 647,603
Minimum Capital Adequacy with Capital Buffer Ratio (as a percent)	0.1050	0.1050
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 706,398	$ 616,765
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	0.1000	0.1000
Tier I Capital (to Risk-Weighted Assets):
Actual Amount	$ 971,294	$ 891,458
Actual Ratio (as a percent)	0.1375	0.1445
Minimum Capital Adequacy Amount	$ 423,839	$ 370,059
Minimum Capital Adequacy Ratio (as a percent)	0.0600	0.0600
Minimum Capital Adequacy with Capital Buffer Amount	$ 600,439	$ 524,250
Minimum Capital Adequacy with Capital Buffer Ratio (as a percent)	0.0850	0.0850
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 565,119	$ 493,412
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	0.0800	0.0800
Common Equity Tier 1 Capital (to Risk-Weighted Assets):
Actual Amount	$ 911,596	$ 838,248
Actual Ratio (as a percent)	0.1290	0.1359
Minimum Capital Adequacy Amount	$ 317,879	$ 277,544
Minimum Capital Adequacy Ratio (as a percent)	0.0450	0.0450
Minimum Capital Adequacy with Capital Buffer Amount	$ 494,479	$ 431,735
Minimum Capital Adequacy with Capital Buffer Ratio (as a percent)	0.0700	0.0700
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 459,159	$ 400,897
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	0.0650	0.0650
Tier I Capital (to Average Assets):
Actual Amount	$ 971,294	$ 891,458
Actual Ratio (as a percent)	0.1170	0.1108
Minimum Capital Adequacy Amount	$ 332,125	$ 321,821
Minimum Capital Adequacy Ratio (as a percent)	0.0400	0.0400
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 415,156	$ 402,277
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	0.0500	0.0500

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021
Fair value measurements
Fair value carrying amount		$ 3,914	$ 13,284
Mortgages held for sale reported at fair value
Fair value measurements
Fair value carrying amount		3,914	13,284
Aggregate unpaid principal		3,766	12,456
Excess of fair value carrying amount over (under) unpaid principal	[1]	$ 148	$ 828

[1]The excess of fair value carrying amount over (under) unpaid principal is included in mortgage banking income and includes changes in fair value at and subsequent to funding and gains and losses on the related loan commitment prior to funding.

Fair Value Measurements (Deta_2

Fair Value Measurements (Details 2) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Fair value measurements
Investment securities available-for-sale	$ 1,775,128	$ 1,863,041
Assets:
Mortgages held for sale	3,914	13,284
U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	998,598	1,084,006
U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	122,762	95,701
Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	637,058	659,727
Corporate debt securities
Fair value measurements
Investment securities available-for-sale	16,131	23,009
Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	579	598
Total
Fair value measurements
Investment securities available-for-sale	1,775,128	1,863,041
Assets:
Mortgages held for sale	3,914	13,284
Level 1
Fair value measurements
Investment securities available-for-sale	573,679	561,950
Assets:
Mortgages held for sale	0	0
Level 2
Fair value measurements
Investment securities available-for-sale	1,199,985	1,299,242
Assets:
Mortgages held for sale	3,914	13,284
Level 3
Fair value measurements
Investment securities available-for-sale	1,464	1,849
Assets:
Mortgages held for sale	0	0
Recurring \| Total
Fair value measurements
Investment securities available-for-sale	1,775,128	1,863,041
Assets:
Mortgages held for sale	3,914	13,284
Total	1,803,880	1,897,060
Liabilities:
Total	25,307	21,172
Recurring \| Total \| Interest rate swap contracts
Assets:
Accrued income and other assets	24,838	20,735
Liabilities:
Accrued expenses and other liabilities	25,307	21,172
Recurring \| Total \| U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	998,598	1,084,006
Recurring \| Total \| U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	122,762	95,701
Recurring \| Total \| Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	637,058	659,727
Recurring \| Total \| Corporate debt securities
Fair value measurements
Investment securities available-for-sale	16,131	23,009
Recurring \| Total \| Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	579	598
Recurring \| Level 1
Fair value measurements
Investment securities available-for-sale	573,679	561,950
Assets:
Mortgages held for sale	0	0
Total	573,679	561,950
Liabilities:
Total	0	0
Recurring \| Level 1 \| Interest rate swap contracts
Assets:
Accrued income and other assets	0	0
Liabilities:
Accrued expenses and other liabilities	0	0
Recurring \| Level 1 \| U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	573,679	561,950
Recurring \| Level 1 \| U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	0	0
Recurring \| Level 1 \| Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	0	0
Recurring \| Level 1 \| Corporate debt securities
Fair value measurements
Investment securities available-for-sale	0	0
Recurring \| Level 1 \| Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	0	0
Recurring \| Level 2
Fair value measurements
Investment securities available-for-sale	1,199,985	1,299,242
Assets:
Mortgages held for sale	3,914	13,284
Total	1,228,737	1,333,261
Liabilities:
Total	25,307	21,172
Recurring \| Level 2 \| Interest rate swap contracts
Assets:
Accrued income and other assets	24,838	20,735
Liabilities:
Accrued expenses and other liabilities	25,307	21,172
Recurring \| Level 2 \| U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	424,919	522,056
Recurring \| Level 2 \| U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	121,298	93,852
Recurring \| Level 2 \| Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	637,058	659,727
Recurring \| Level 2 \| Corporate debt securities
Fair value measurements
Investment securities available-for-sale	16,131	23,009
Recurring \| Level 2 \| Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	579	598
Recurring \| Level 3
Fair value measurements
Investment securities available-for-sale	1,464	1,849
Assets:
Mortgages held for sale	0	0
Total	1,464	1,849
Liabilities:
Total	0	0
Recurring \| Level 3 \| Interest rate swap contracts
Assets:
Accrued income and other assets	0	0
Liabilities:
Accrued expenses and other liabilities	0	0
Recurring \| Level 3 \| U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	0	0
Recurring \| Level 3 \| U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	1,464	1,849
Recurring \| Level 3 \| Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	0	0
Recurring \| Level 3 \| Corporate debt securities
Fair value measurements
Investment securities available-for-sale	0	0
Recurring \| Level 3 \| Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	$ 0	$ 0

Fair Value Measurements (Deta_3

Fair Value Measurements (Details 3) - USD ($)	12 Months Ended
Fair Value Measurements (Details 3) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Changes in the fair value of Level 3 assets measured on a recurring basis
Total gains or losses (unrealized): included in earnings	$ 0	$ 0
U.S. States and political subdivisions securities
Changes in the fair value of Level 3 assets measured on a recurring basis
Balance at the beginning of the period	1,849,000	2,152,000
Total gains or losses (realized/unrealized): included in earnings	0	0
Total gains or losses (realized/unrealized): included in other comprehensive income	(135,000)	(15,000)
Purchases	3,000,000	0
Issuances	0	0
Sales	0	0
Settlements	0	0
Maturities	(3,250,000)	(288,000)
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance at the end of the period	$ 1,464,000	$ 1,849,000

Fair Value Measurements (Deta_4

Fair Value Measurements (Details 4) $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Valuation Methodology
Investment securities, available-for-sale	$ 1,775,128	$ 1,863,041
Level 3
Valuation Methodology
Investment securities, available-for-sale	1,464	1,849
Recurring \| Level 3
Valuation Methodology
Investment securities, available-for-sale	1,464	1,849
Recurring \| Level 3 \| Discounted cash flows \| Direct placement municipal securities
Valuation Methodology
Investment securities, available-for-sale	$ 1,464	$ 1,849
Discount for lack of marketability \| Non-recurring \| Level 3 \| Trade publications \| Aircraft
Unobservable Inputs
Discount rate (as a percent)	0.10
Discount for lack of marketability \| Non-recurring \| Level 3 \| Auction values \| Autos
Unobservable Inputs
Discount rate (as a percent)	0.10
Discount for lack of marketability \| Non-recurring \| Level 3 \| Trade publications and auction values \| Medium and heavy duty trucks
Unobservable Inputs
Discount rate (as a percent)	0.15
Discount for lack of marketability \| Non-recurring \| Level 3 \| Trade publications and auction values \| Construction equipment
Unobservable Inputs
Discount rate (as a percent)	0.20
Discount for lack of marketability \| Non-recurring \| Level 3 \| Appraisals \| Real estate
Unobservable Inputs
Discount rate (as a percent)	0.20
Credit spread assumption \| Recurring \| Level 3 \| Discounted cash flows \| Direct placement municipal securities \| Minimum
Unobservable Inputs
Debt securities available-for-sale unobservable inputs (as a percent)	0.0022	0.0004
Credit spread assumption \| Recurring \| Level 3 \| Discounted cash flows \| Direct placement municipal securities \| Maximum
Unobservable Inputs
Debt securities available-for-sale unobservable inputs (as a percent)	0.0409	0.0231
Credit spread assumption \| Recurring \| Level 3 \| Discounted cash flows \| Direct placement municipal securities \| Weighted Average [Member]
Unobservable Inputs
Debt securities available-for-sale unobservable inputs (as a percent)	0.0349	0.0158
Receivables \| Discount for lack of marketability \| Non-recurring \| Level 3 \| Commercial loans
Unobservable Inputs
Discount rate (as a percent)	0.20
Inventory \| Discount for lack of marketability \| Non-recurring \| Level 3 \| Minimum \| Commercial loans
Unobservable Inputs
Discount rate (as a percent)	0.40
Inventory \| Discount for lack of marketability \| Non-recurring \| Level 3 \| Maximum \| Commercial loans
Unobservable Inputs
Discount rate (as a percent)	0.75

Fair Value Measurements (Deta_5

Fair Value Measurements (Details 5) - Non-recurring - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Collateral-dependent impaired loans
Fair value measurements
Impairment charges	$ 0	$ 2,760
Mortgage servicing rights
Fair value measurements
Impairment charges	0
Impairment recoveries		(810)
Repossessions
Fair value measurements
Impairment charges	0	270
Other real estate
Fair value measurements
Impairment charges	0	60
Total
Fair value measurements
Collateral-dependent impaired loans	0	571
Assets measured at fair value	4,568	6,103
Total \| Mortgage servicing rights
Fair value measurements
Accrued income and other assets	4,137	4,671
Total \| Repossessions
Fair value measurements
Accrued income and other assets	327	861
Total \| Other real estate
Fair value measurements
Accrued income and other assets	104	0
Level 3
Fair value measurements
Collateral-dependent impaired loans	0	571
Assets measured at fair value	4,568	6,103
Level 3 \| Mortgage servicing rights
Fair value measurements
Accrued income and other assets	4,137	4,671
Level 3 \| Repossessions
Fair value measurements
Accrued income and other assets	327	861
Level 3 \| Other real estate
Fair value measurements
Accrued income and other assets	$ 104	$ 0

Fair Value Measurements (Deta_6

Fair Value Measurements (Details 6) - Non-recurring $ in Thousands	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Level 3
Valuation Methodology
Assets measured at fair value	$ 4,568	$ 6,103
Carrying Value \| Level 3 \| Collateral based measurements \| Collateral-dependent impaired loans
Valuation Methodology
Assets measured at fair value	0	571
Carrying Value \| Level 3 \| Discounted cash flows \| Mortgage servicing rights
Valuation Methodology
Assets measured at fair value	4,137	4,671
Carrying Value \| Level 3 \| Appraisals trade publications and auction values \| Repossessions
Valuation Methodology
Assets measured at fair value	327	861
Carrying Value \| Level 3 \| Appraisals \| Other real estate
Valuation Methodology
Assets measured at fair value	104	0
Fair Value
Valuation Methodology
Assets measured at fair value	4,568	6,103
Fair Value \| Level 3 \| Collateral based measurements \| Collateral-dependent impaired loans
Valuation Methodology
Assets measured at fair value	0	571
Fair Value \| Level 3 \| Discounted cash flows \| Mortgage servicing rights
Valuation Methodology
Assets measured at fair value	8,007	5,640
Fair Value \| Level 3 \| Appraisals trade publications and auction values \| Repossessions
Valuation Methodology
Assets measured at fair value	370	942
Fair Value \| Level 3 \| Appraisals \| Other real estate
Valuation Methodology
Assets measured at fair value	$ 104	$ 0
Discount for lack of marketability and current conditions \| Level 3 \| Collateral based measurements \| Collateral-dependent impaired loans \| Minimum
Unobservable Inputs
Impaired loans unobservable inputs (as a percent)	0	0.20
Discount for lack of marketability and current conditions \| Level 3 \| Collateral based measurements \| Collateral-dependent impaired loans \| Maximum
Unobservable Inputs
Impaired loans unobservable inputs (as a percent)	0	0.90
Discount for lack of marketability and current conditions \| Level 3 \| Collateral based measurements \| Collateral-dependent impaired loans \| Weighted Average [Member]
Unobservable Inputs
Impaired loans unobservable inputs (as a percent)	0	0.431
Constant prepayment rate (CPR) \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Minimum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.076	0.118
Constant prepayment rate (CPR) \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Maximum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.096	0.185
Constant prepayment rate (CPR) \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Weighted Average [Member]
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.082	0.164
Discount rate \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Minimum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.114	0.086
Discount rate \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Maximum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.142	0.115
Discount rate \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Weighted Average [Member]
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.115	0.088
Discount for lack of marketability \| Level 3 \| Appraisals trade publications and auction values \| Repossessions \| Minimum
Unobservable Inputs
Repossessions unobservable inputs (as a percent)	0.02	0
Discount for lack of marketability \| Level 3 \| Appraisals trade publications and auction values \| Repossessions \| Maximum
Unobservable Inputs
Repossessions unobservable inputs (as a percent)	0.09	0.21
Discount for lack of marketability \| Level 3 \| Appraisals trade publications and auction values \| Repossessions \| Weighted Average [Member]
Unobservable Inputs
Repossessions unobservable inputs (as a percent)	0.07	0.02
Discount for lack of marketability \| Level 3 \| Appraisals \| Other real estate \| Minimum
Unobservable Inputs
Other real estate unobservable inputs (as a percent)	0	0
Discount for lack of marketability \| Level 3 \| Appraisals \| Other real estate \| Maximum
Unobservable Inputs
Other real estate unobservable inputs (as a percent)	0	0
Discount for lack of marketability \| Level 3 \| Appraisals \| Other real estate \| Weighted Average [Member]
Unobservable Inputs
Other real estate unobservable inputs (as a percent)	0	0

Fair Value Measurements (Deta_7

Fair Value Measurements (Details 7) - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021
Assets:
Cash and due from banks		$ 84,703	$ 54,420
Federal funds sold and interest bearing deposits with other banks		38,094	470,767
Investment securities available-for-sale		1,775,128	1,863,041
Federal Home Loan Bank Stock and Federal Reserve Bank Stock		25,293	27,189
Mortgages held for sale		3,914	13,284
Loans and leases, net of reserve for loan and lease losses		5,871,894	5,218,722
Liabilities:
Long-term debt and mandatorily redeemable securities		46,555	71,251
Subordinated notes		58,764	58,764
Carrying or Contract Value
Assets:
Cash and due from banks		84,703	54,420
Federal funds sold and interest bearing deposits with other banks		38,094	470,767
Investment securities available-for-sale		1,775,128	1,863,041
Federal Home Loan Bank Stock and Federal Reserve Bank Stock		25,293	27,189
Mortgages held for sale		3,914	13,284
Loans and leases, net of reserve for loan and lease losses		5,871,894	5,218,722
Mortgage servicing rights		4,137	4,671
Interest receivable		24,747	17,760
Interest rate swaps		24,838	20,735
Liabilities:
Deposits		6,928,265	6,679,065
Short-term borrowings		215,529	200,027
Long-term debt and mandatorily redeemable securities		46,555	71,251
Subordinated notes		58,764	58,764
Interest payable		5,999	1,885
Interest rate swaps		25,307	21,172
Off-balance-sheet instruments	[1]	0	0
Fair Value
Assets:
Cash and due from banks		84,703	54,420
Federal funds sold and interest bearing deposits with other banks		38,094	470,767
Investment securities available-for-sale		1,775,128	1,863,041
Federal Home Loan Bank Stock and Federal Reserve Bank Stock		25,293	27,189
Mortgages held for sale		3,914	13,284
Loans and leases, net of reserve for loan and lease losses		5,712,972	5,269,551
Mortgage servicing rights		8,007	5,640
Interest receivable		24,747	17,760
Interest rate swaps		24,838	20,735
Liabilities:
Deposits		6,909,392	6,680,163
Short-term borrowings		215,529	200,027
Long-term debt and mandatorily redeemable securities		45,111	71,305
Subordinated notes		51,398	58,553
Interest payable		5,999	1,885
Interest rate swaps		25,307	21,172
Off-balance-sheet instruments	[1]	108	364
Level 1
Assets:
Cash and due from banks		84,703	54,420
Federal funds sold and interest bearing deposits with other banks		38,094	470,767
Investment securities available-for-sale		573,679	561,950
Federal Home Loan Bank Stock and Federal Reserve Bank Stock		25,293	27,189
Mortgages held for sale		0	0
Loans and leases, net of reserve for loan and lease losses		0	0
Mortgage servicing rights		0	0
Interest receivable		0	0
Interest rate swaps		0	0
Liabilities:
Deposits		5,787,806	5,794,928
Short-term borrowings		139,079	192,801
Long-term debt and mandatorily redeemable securities		0	0
Subordinated notes		0	0
Interest payable		0	0
Interest rate swaps		0	0
Off-balance-sheet instruments	[1]	0	0
Level 2
Assets:
Cash and due from banks		0	0
Federal funds sold and interest bearing deposits with other banks		0	0
Investment securities available-for-sale		1,199,985	1,299,242
Federal Home Loan Bank Stock and Federal Reserve Bank Stock		0	0
Mortgages held for sale		3,914	13,284
Loans and leases, net of reserve for loan and lease losses		0	0
Mortgage servicing rights		0	0
Interest receivable		24,747	17,760
Interest rate swaps		24,838	20,735
Liabilities:
Deposits		1,121,586	885,235
Short-term borrowings		76,450	7,226
Long-term debt and mandatorily redeemable securities		45,111	71,305
Subordinated notes		51,398	58,553
Interest payable		5,999	1,885
Interest rate swaps		25,307	21,172
Off-balance-sheet instruments	[1]	108	364
Level 3
Assets:
Cash and due from banks		0	0
Federal funds sold and interest bearing deposits with other banks		0	0
Investment securities available-for-sale		1,464	1,849
Federal Home Loan Bank Stock and Federal Reserve Bank Stock		0	0
Mortgages held for sale		0	0
Loans and leases, net of reserve for loan and lease losses		5,712,972	5,269,551
Mortgage servicing rights		8,007	5,640
Interest receivable		0	0
Interest rate swaps		0	0
Liabilities:
Deposits		0	0
Short-term borrowings		0	0
Long-term debt and mandatorily redeemable securities		0	0
Subordinated notes		0	0
Interest payable		0	0
Interest rate swaps		0	0
Off-balance-sheet instruments	[1]	$ 0	$ 0

[1]Represents estimated cash outflows required to currently settle the obligations at current market rates.

1st Source Corporation (Paren_3

1st Source Corporation (Parent Company Only) Financial Information (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
ASSETS
Operating lease right of use assets	$ 20,916	$ 22,071
Other assets	380,010	269,469
Investment carrying amount	8,339,416	8,096,289
LIABILITIES AND SHAREHOLDERS' EQUITY
Long-term debt and mandatorily redeemable securities	46,555	71,251
Subordinated notes	58,764	58,764
Operating lease liabilities	19,634	21,364
Other liabilities	166,537	117,718
Unfunded capital and other commitments	7,415,650	7,126,825
Total shareholders’ equity	864,068	916,255
Total liabilities and shareholders’ equity	8,339,416	8,096,289
Parent
ASSETS
Cash and cash equivalents	104,678	94,543	$ 113,242	$ 107,285
Operating lease right of use assets	14,730	16,106
Other assets	6,234	6,877
Investment carrying amount	968,850	1,025,265
LIABILITIES AND SHAREHOLDERS' EQUITY
Commercial paper	3,096	3,967
Long-term debt and mandatorily redeemable securities	25,240	27,102
Subordinated notes	58,764	58,764
Operating lease liabilities	13,509	15,463
Other liabilities	4,173	3,714
Unfunded capital and other commitments	104,782	109,010
Total shareholders’ equity	864,068	916,255
Total liabilities and shareholders’ equity	968,850	1,025,265
Parent \| Bank subsidiaries
ASSETS
Short-term investments with bank subsidiary	500	500
Investments in subsidiary	842,707	907,238
Parent \| Non-bank subsidiaries
ASSETS
Investments in subsidiary	$ 1	$ 1

1st Source Corporation (Paren_4

1st Source Corporation (Parent Company Only) Financial Information (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income:
Operating Lease Income Comprehensive Income Extensible List Not Disclosed Flag	Rental income from (reimbursements to) subsidiaries	Rental income from (reimbursements to) subsidiaries	Rental income from (reimbursements to) subsidiaries
Other	$ 15,042	$ 12,560	$ 11,949
Expenses:
Interest on subordinated notes	3,550	3,267	3,367
Interest on long-term debt and mandatorily redeemable securities	69	2,476	2,868
Interest on commercial paper and other short-term borrowings	1,497	115	517
Occupancy	10,728	10,524	10,276
Other	14,287	10,902	16,564
Income before income taxes	156,787	154,885	106,341
Income tax benefit	(36,255)	(36,328)	(24,880)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	(17,320)	90,302	94,636
Parent
Income:
Rental income from (reimbursements to) subsidiaries	1,740	1,873	(908)
Other	148	146	293
Investment securities and other investment gains (losses)	353	342	(44)
Total income	51,829	48,568	45,548
Expenses:
Interest on subordinated notes	3,550	3,267	3,367
Interest on long-term debt and mandatorily redeemable securities	(341)	1,799	2,151
Interest on commercial paper and other short-term borrowings	1	3	11
Occupancy	1,625	1,722	1,816
Other	890	711	667
Total expenses	5,725	7,502	8,012
Income before income taxes	46,104	41,066	37,536
Income tax benefit	1,099	998	1,747
Income before equity in undistributed income of subsidiaries	47,203	42,064	39,283
Equity in undistributed income of subsidiaries	73,329	76,493	42,178
Net income	120,532	118,557	81,461
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	(17,297)	90,325	94,660
Parent \| Bank subsidiaries
Income:
Dividends from bank subsidiary	49,588	46,207	46,207
Expenses:
Equity in undistributed income of subsidiaries	$ 73,329	$ 76,493	$ 42,178

1st Source Corporation (Paren_5

1st Source Corporation (Parent Company Only) Financial Information (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment	$ 4,596	$ 5,093	$ 5,673
Amortization of right of use assets	3,181	3,095	2,842
Stock-based compensation	3,587	4,214	3,293
Other	(4,006)	279	940
Investing activities:
Net change in partnership investments	(18,292)	(24,897)	(54,981)
Financing activities:
Proceeds from issuance of long-term debt and mandatorily redeemable securities	0	0	10,000
Payments on long-term debt and mandatorily redeemable securities	(25,530)	(13,460)	(2,905)
Stock issued under stock purchase plans	252	90	39
Acquisition of treasury stock	(6,836)	(33,136)	(6,415)
Cash dividends paid on common stock	(32,102)	(31,340)	(29,764)
Parent Company
1st Source Corporation (Parent Company Only) Financial Information
Net income	120,532	118,557	81,461
Adjustments to reconcile net income to net cash provided by operating activities:
Equity (undistributed) distributed in excess of income of subsidiaries	(73,329)	(76,493)	(42,178)
Depreciation of premises and equipment	0	1	2
Amortization of right of use assets	1,376	1,346	1,107
Stock-based compensation	120	102	94
Realized/unrealized investment securities and other investment (gains) losses	(353)	(342)	44
Other	(702)	1,556	(103)
Net change in operating activities	47,644	44,727	40,427
Investing activities:
Net change in partnership investments	102	(74)	(182)
Net change in investing activities	102	(74)	(182)
Financing activities:
Net change in commercial paper	(871)	(800)	774
Proceeds from issuance of long-term debt and mandatorily redeemable securities	1,862	1,738	1,640
Payments on long-term debt and mandatorily redeemable securities	(2,708)	(2,427)	(2,268)
Stock issued under stock purchase plans	252	90	39
Net proceeds from issuance of treasury stock	2,792	2,523	1,706
Acquisition of treasury stock	(6,836)	(33,136)	(6,415)
Cash dividends paid on common stock	(32,102)	(31,340)	(29,764)
Net change in financing activities	(37,611)	(63,352)	(34,288)
Net change in cash and cash equivalents	10,135	(18,699)	5,957
Cash and cash equivalents, beginning of year	94,543	113,242	107,285
Cash and cash equivalents, end of year	$ 104,678	$ 94,543	$ 113,242