1st Source (SRCE) 10-Q25 Apr 242024 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2024	Apr. 19, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	0-6233
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
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock - without par value
Trading Symbol	SRCE
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		24,489,694
Entity Registrant Name	1st Source Corp
Entity Central Index Key	0000034782
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONSOLIDATED STATEMENTS OF FINA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
ASSETS
Cash and due from banks	$ 41,533	$ 77,474
Federal funds sold and interest bearing deposits with other banks	39,381	52,194
Investment securities available-for-sale	1,583,244	1,622,600
Other investments	25,075	25,075
Mortgages held for sale	2,881	1,442
Loans and leases - net of unearned discount
Loans and leases	6,562,772	6,518,505
Allowance for loan and lease losses	(148,024)	(147,552)
Net loans and leases	6,414,748	6,370,953
Equipment owned under operating leases, net	16,691	20,366
Net premises and equipment	45,689	46,159
Goodwill and intangible assets	83,912	83,916
Accrued income and other assets	414,683	427,779
Total assets	8,667,837	8,727,958
Deposits:
Noninterest-bearing demand	1,618,498	1,655,728
Interest-bearing deposits:
Interest-bearing demand	2,364,751	2,430,833
Savings	1,270,401	1,213,334
Time	1,801,661	1,738,686
Total interest-bearing deposits	5,436,813	5,382,853
Total deposits	7,055,311	7,038,581
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase	82,591	55,809
Other short-term borrowings	166,989	256,550
Total short-term borrowings	249,580	312,359
Long-term debt and mandatorily redeemable securities	39,406	47,911
Subordinated notes	58,764	58,764
Accrued expenses and other liabilities	183,227	202,080
Total liabilities	7,586,288	7,659,695
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 at March 31, 2024 and December 31, 2023	436,538	436,538
Retained earnings	812,413	789,842
Cost of common stock in treasury (3,728,016 shares at March 31, 2024 and 3,771,070 shares at December 31, 2023)	(129,790)	(130,489)
Accumulated other comprehensive loss	(109,275)	(106,323)
Total shareholders’ equity	1,009,886	989,568
Noncontrolling interests	71,663	78,695
Total equity	1,081,549	1,068,263
Total liabilities and equity	$ 8,667,837	$ 8,727,958
Preferred stock; no par value (in dollars per share)	$ 0	$ 0
Preferred stock, Authorized shares	10,000,000	10,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock; no par value (in dollars per share)	$ 0	$ 0
Common stock, Authorized shares	40,000,000	40,000,000
Common stock, issued shares	28,205,674	28,205,674
Treasury Stock, Common, Shares	3,728,016	3,771,070
Commercial and agricultural
Loans and leases - net of unearned discount
Loans and leases	$ 731,527	$ 766,223
Allowance for loan and lease losses	(17,263)	(17,385)
Renewable energy
Loans and leases - net of unearned discount
Loans and leases	413,662	399,708
Allowance for loan and lease losses	(6,858)	(6,610)
Auto and light truck
Loans and leases - net of unearned discount
Loans and leases	997,465	966,912
Allowance for loan and lease losses	(17,584)	(16,858)
Medium and heavy duty truck
Loans and leases - net of unearned discount
Loans and leases	303,799	311,947
Allowance for loan and lease losses	(8,788)	(8,965)
Aircraft
Loans and leases - net of unearned discount
Loans and leases	1,104,058	1,078,172
Allowance for loan and lease losses	(36,924)	(37,653)
Construction equipment
Loans and leases - net of unearned discount
Loans and leases	1,092,585	1,084,752
Allowance for loan and lease losses	(26,804)	(26,510)
Commercial real estate
Loans and leases - net of unearned discount
Loans and leases	1,135,595	1,129,861
Allowance for loan and lease losses	(23,844)	(23,690)
Residential real estate and home equity
Loans and leases - net of unearned discount
Loans and leases	643,856	637,973
Allowance for loan and lease losses	(7,808)	(7,698)
Consumer
Loans and leases - net of unearned discount
Loans and leases	140,225	142,957
Allowance for loan and lease losses	$ (2,151)	$ (2,183)

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Interest income:
Loans and leases	$ 109,202	$ 86,689
Investment securities, taxable	6,079	6,648
Investment securities, tax-exempt	260	482
Other	927	637
Total interest income	116,468	94,456
Interest expense:
Deposits	39,744	21,263
Short-term borrowings	3,102	1,393
Subordinated notes	1,061	1,020
Long-term debt and mandatorily redeemable securities	646	1,215
Total interest expense	44,553	24,891
Net interest income	71,915	69,565
Provision for credit losses	6,595	3,049
Net interest income after provision for credit losses	65,320	66,516
Noninterest income:
Mortgage banking	950	802
Insurance commissions	1,776	2,029
Equipment rental	1,671	2,503
Losses on investment securities available-for-sale	0	(44)
Other	4,201	4,844
Total noninterest income	22,156	23,323
Noninterest expense:
Salaries and employee benefits	29,572	28,597
Net occupancy	2,996	2,622
Furniture and equipment	1,149	1,307
Information Technology and Data Processing	6,500	6,157
Depreciation - leased equipment	1,288	2,022
Professional fees	1,345	682
FDIC and other insurance	1,657	1,360
Business development and marketing	1,744	1,972
Other	3,335	4,702
Total noninterest expense	49,586	49,421
Income before income taxes	37,890	40,418
Income tax expense	8,428	9,287
Net income	29,462	31,131
Net (income) loss attributable to noncontrolling interests	(7)	(7)
Net income available to common shareholders	$ 29,455	$ 31,124
Per common share:
Basic net income per common share (in dollars per share)	$ 1.19	$ 1.25
Diluted net income per common share (in dollars per share)	1.19	1.25
Cash dividends (in dollars per share)	$ 0.34	$ 0.32
Basic weighted average common shares outstanding (in shares)	24,459,088	24,687,087
Diluted weighted average common shares outstanding (in shares)	24,459,088	24,687,087
Trust and wealth advisory
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	$ 6,287	$ 5,679
Service charges on deposit accounts
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	3,070	3,003
Debit card
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	$ 4,201	$ 4,507

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 29,462	$ 31,131
Other comprehensive income (loss):
Unrealized (depreciation) appreciation of available-for-sale securities	(3,791)	26,476
Reclassification adjustment for realized losses included in net income	0	44
Income tax effect	839	(6,295)
Other comprehensive (loss) income, net of tax	(2,952)	20,225
Comprehensive income (loss)	26,510	51,356
Comprehensive (income) loss attributable to noncontrolling interests	(7)	(7)
Comprehensive income (loss) available to common shareholders	$ 26,503	$ 51,349

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Retained Earnings	Treasury Stock, Common	Accumulated Other Comprehensive Income (Loss), Net	Total Shareholders' Equity	Noncontrolling Interests
Balance at Dec. 31, 2022	$ 923,766	$ 436,538	$ 694,862	$ (119,642)	$ (147,690)	$ 864,068	$ 59,698
Increase (Decrease) in Shareholders' Equity
Net income	31,131		31,124			31,124	7
Other comprehensive income (loss)	20,225				20,225	20,225
Issuance of 43,054 and 49,625 common shares under stock based compensation awards for the three months ended March 31, 2024 and 2023, respectively	2,425		1,426	999		2,425
Cost of 0 and 16,359 shares of common stock acquired for treasury for the three months ended March 31, 2024 and 2023, respectively	(766)			(766)		(766)
Common stock dividend ($0.34 and $0.32 per share for the three months ended March 31, 2024 and 2023, respectively)	(7,917)		(7,917)			(7,917)
Distributions to noncontrolling interests	(420)					0	(420)
Liquidation of noncontrolling interests	$ 0
Issuance of common shares under stock based compensation awards (in shares)	49,625
Common stock acquired for treasury (in shares)	16,359
Cash dividends (in dollars per share)	$ 0.32
Balance at Mar. 31, 2023	$ 968,444	436,538	719,495	(119,409)	(127,465)	909,159	59,285
Balance at Dec. 31, 2023	1,068,263	436,538	789,842	(130,489)	(106,323)	989,568	78,695
Increase (Decrease) in Shareholders' Equity
Net income	29,462		29,455			29,455	7
Other comprehensive income (loss)	(2,952)				(2,952)	(2,952)
Issuance of 43,054 and 49,625 common shares under stock based compensation awards for the three months ended March 31, 2024 and 2023, respectively	2,161		1,462	699		2,161
Common stock dividend ($0.34 and $0.32 per share for the three months ended March 31, 2024 and 2023, respectively)	(8,346)		(8,346)			(8,346)
Distributions to noncontrolling interests	(1,119)					0	(1,119)
Liquidation of noncontrolling interests	$ (5,920)						(5,920)
Issuance of common shares under stock based compensation awards (in shares)	43,054
Cash dividends (in dollars per share)	$ 0.34
Balance at Mar. 31, 2024	$ 1,081,549	$ 436,538	$ 812,413	$ (129,790)	$ (109,275)	$ 1,009,886	$ 71,663

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Cash Flows [Abstract]
Net income	$ 29,462	$ 31,131
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	6,595	3,049
Depreciation of premises and equipment	1,032	1,146
Depreciation of equipment owned and leased to others	1,288	2,022
Stock-based compensation	1,310	1,121
Amortization of investment securities premiums and accretion of discounts, net	767	855
Amortization of mortgage servicing rights	184	221
Amortization of right of use assets	759	778
Deferred income taxes	2,379	(993)
Losses on investment securities available-for-sale	0	44
Originations of loans held for sale, net of principal collected	(10,727)	(8,862)
Proceeds from the sales of loans held for sale	9,652	10,934
Net gain on sale of loans held for sale	(364)	(226)
Net gain on sale of other real estate and repossessions	(96)	(39)
Change in interest receivable	(453)	(125)
Change in interest payable	2,695	7,599
Change in other assets	(1,725)	(5,422)
Change in other liabilities	(399)	3,987
Other	(399)	(367)
Net Cash Provided by (Used in) Operating Activities	41,960	46,853
Investing activities:
Proceeds from sales of investment securities available-for-sale	0	64,928
Proceeds from maturities and paydowns of investment securities available-for-sale	55,723	25,341
Purchases of investment securities available-for-sale	(20,925)	(3,000)
Net change in partnership investments	(10,259)	(5,274)
Loans sold or participated to others	22,276	16,026
Proceeds from principal payments on direct finance leases	17,810	13,043
Net change in loans and leases	(91,045)	(134,913)
Net change in equipment owned under operating leases	2,387	(405)
Purchases of premises and equipment	(575)	(408)
Proceeds from disposal of premises and equipment	13	2
Proceeds from sales of other real estate and repossessions	905	391
Net Cash Provided by (Used in) Investing Activities	(23,690)	(24,269)
Financing activities:
Net change in demand deposits and savings accounts	(46,245)	(397,447)
Net change in time deposits	62,975	270,646
Net change in short-term borrowings	(62,779)	87,507
Payments on long-term debt	(11,264)	(2,727)
Acquisition of treasury stock	0	(766)
Net (distributions to) contributions from noncontrolling interests	(1,119)	(420)
Cash dividends paid on common stock	(8,592)	(8,137)
Net change in financing activities	(67,024)	(51,344)
Net change in cash and cash equivalents	(48,754)	(28,760)
Cash and cash equivalents, beginning of year	129,668	122,797
Cash and cash equivalents, end of period	80,914	94,037
Non-cash transactions:
Loans transferred to other real estate and repossessed assets	412	484
Common stock matching contribution to Employee Stock Ownership and Profit Sharing Plan	1,153	1,753
Right of use assets obtained in exchange for lease obligations	535	2,495
Liquidation of noncontrolling interests	$ 5,920	$ 0

Accounting Policies

Accounting Policies	3 Months Ended
Accounting Policies	Mar. 31, 2024
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. Basis of Presentation – The accompanying unaudited consolidated financial statements reflect all adjustments (all of which are normal and recurring in nature) which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position, the results of operations, changes in comprehensive income (loss), changes in shareholders’ equity, and cash flows for the periods presented. These unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (SEC) and, therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been omitted. The Notes to the Consolidated Financial Statements appearing in 1st Source Corporation’s Annual Report on Form 10-K (2023 Annual Report), which include descriptions of significant accounting policies, should be read in conjunction with these interim financial statements. The Consolidated Statement of Financial Condition at December 31, 2023 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current period presentation. Use of Estimates in the Preparation of Financial Statements – Financial statements prepared in accordance with 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 expense during the reporting period. Actual results could differ from those estimates. 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 other 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 and is excluded from the calculation of the allowance for credit losses. 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. Occasionally, the Company modifies loans and leases to borrowers in financial distress (typically denoted by internal credit quality graded “substandard” or worse) by providing term extensions, other-than-insignificant payment delays, or interest rate reductions. In some cases, a combination of modifications are made to the same loan or lease. These modifications typically result from the Company’s loss mitigation activities. 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.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
Recent Accounting Pronouncements	Mar. 31, 2024
Accounting Standards Update and Change in Accounting Principle [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Investments-Equity Method and Joint Ventures: In March 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards (ASU) No. 2023-02 “Investments Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method.” These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. 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 in any interim period. The Company adopted ASU 2023-02 on January 1, 2024, and it had no impact on its accounting and disclosures. Fair Value Measurements: In June 2022, the FASB issued 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. The Company adopted ASU 2022-03 on January 1, 2024, and it had no impact on its accounting and disclosures. Income Taxes: In December 2023, the FASB issued ASU No. 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” Among other things, these amendments require that public business entities on an annual basis (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than five percent of the amount computed by multiplying pretax income (loss) by the applicable statutory income tax rate.) The amendments also require that all entities disclose on an annual basis the following information about income taxes paid: (1) the amount of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and (2) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than five percent of total income taxes paid (net of refunds received.) This guidance is effective for public business entities for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied on a prospective basis although retrospective application is permitted. The Company is continuing to assess ASU 2023-09 and its impact on its accounting and disclosures. Segment Reporting : In November 2023, the FASB issued ASU 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” These amendments require, among other things, that a public entity that has a single reportable segment provide all the disclosures required by the amendments in this ASU and all existing segment disclosures in Topic 208. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. A public entity should apply the amendments retrospectively to all periods presented in the financial statements. The Company is continuing to assess ASU 2023-07 and its impact on its accounting and disclosures.

Investment Securities

Investment Securities	3 Months Ended
Investment Securities	Mar. 31, 2024
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 March 31, 2024 U.S. Treasury and Federal agencies securities $ 958,300 $ 13 $ (55,428) $ 902,885 U.S. States and political subdivisions securities 92,875 223 (5,449) 87,649 Mortgage-backed securities — Federal agencies 667,973 64 (82,900) 585,137 Corporate debt securities 7,044 — (64) 6,980 Foreign government and other securities 600 — (7) 593 Total debt securities available-for-sale $ 1,726,792 $ 300 $ (143,848) $ 1,583,244 December 31, 2023 U.S. Treasury and Federal agencies securities $ 979,530 $ 178 $ (56,842) $ 922,866 U.S. States and political subdivisions securities 97,522 508 (5,466) 92,564 Mortgage-backed securities — Federal agencies 676,257 476 (78,481) 598,252 Corporate debt securities 8,448 — (119) 8,329 Foreign government and other securities 600 — (11) 589 Total debt securities available-for-sale $ 1,762,357 $ 1,162 $ (140,919) $ 1,622,600 Amortized cost excludes accrued interest receivable which is included in Accrued Income and Other Assets on the Consolidated Statements of Financial Condition. At March 31, 2024 and December 31, 2023, accrued interest receivable on investment securities available-for-sale was $4.50 million and $4.60 million, respectively. At March 31, 2024 and December 31, 2023, 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 following table shows the contractual maturities of investments in debt securities available-for-sale at March 31, 2024. 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 $ 298,957 $ 292,127 Due after one year through five years 727,883 674,372 Due after five years through ten years 13,151 12,729 Due after ten years 18,828 18,879 Mortgage-backed securities 667,973 585,137 Total debt securities available-for-sale $ 1,726,792 $ 1,583,244 The following table summarizes gross unrealized losses and fair value by investment category and age. At March 31, 2024, the Company’s available-for-sale securities portfolio consisted of 661 securities, 606 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 March 31, 2024 U.S. Treasury and Federal agencies securities $ 8,812 $ (84) $ 883,797 $ (55,344) $ 892,609 $ (55,428) U.S. States and political subdivisions securities 5,194 (114) 64,560 (5,335) 69,754 (5,449) Mortgage-backed securities - Federal agencies 19,900 (73) 537,697 (82,827) 557,597 (82,900) Corporate debt securities — — 6,980 (64) 6,980 (64) Foreign government and other securities — — 593 (7) 593 (7) Total debt securities available-for-sale $ 33,906 $ (271) $ 1,493,627 $ (143,577) $ 1,527,533 $ (143,848) December 31, 2023 U.S. Treasury and Federal agencies securities $ — $ — $ 913,417 $ (56,842) $ 913,417 $ (56,842) U.S. States and political subdivisions securities 1,251 (2) 69,747 (5,464) 70,998 (5,466) Mortgage-backed securities - Federal agencies 8,553 (98) 550,748 (78,383) 559,301 (78,481) Corporate debt securities — — 8,329 (119) 8,329 (119) Foreign government and other securities — — 589 (11) 589 (11) Total debt securities available-for-sale $ 9,804 $ (100) $ 1,542,830 $ (140,819) $ 1,552,634 $ (140,919) The Company does not consider available-for-sale securities with unrealized losses at March 31, 2024 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. Three Months Ended (Dollars in thousands) 2024 2023 Gross realized gains $ — $ 1,286 Gross realized losses — (1,330) Net realized losses $ — $ (44) At March 31, 2024 and December 31, 2023, investment securities available-for-sale with carrying values of $375.73 million and $411.38 million, respectively, were pledged as collateral for security repurchase agreements and for other purposes.

Loan and Lease Financings

Loan and Lease Financings	3 Months Ended
Loan and Lease Financings	Mar. 31, 2024
Receivables [Abstract]
Loan and Lease Financings	Loan and Lease Financings The Company evaluates loans and leases for credit quality at least annually but more frequently if certain circumstances occur (such as material new information which becomes available and indicates a potential change in credit risk). The Company uses two methods to assess credit risk: loan or lease credit quality grades and credit risk classifications. The purpose of the loan or lease credit quality grade is to document the degree of risk associated with individual credits as well as inform management of the degree of risk in the portfolio taken as a whole. Credit risk classifications are used to categorize loans by degree of risk and to designate individual or committee approval authorities for higher risk credits at the time of origination. Credit risk classifications include categories for: Acceptable, Marginal, Special Attention, Special Risk, Restricted by Policy, Regulated and Prohibited by Law. All loans and leases, except residential real estate loans‚ home equity loans, and consumer loans, are assigned credit quality grades on a scale from 1 to 12, with grade 1 representing superior credit quality. The criteria used to assign grades to extensions of credit that exhibit potential problems or well-defined weaknesses are primarily based upon the degree of risk and the likelihood of orderly repayment, and their effect on the Company’s safety and soundness. Loans or leases graded 7 or weaker are considered “special attention” credits and, as such, relationships in excess of $250,000 are reviewed quarterly as part of management’s evaluation of the appropriateness of the allowance for loan and lease losses. Grade 7 credits are defined as “watch” and contain greater than average credit risk and are monitored to limit the exposure to increased risk; grade 8 credits are “special mention” and, following regulatory guidelines, are defined as having potential weaknesses that deserve management’s close attention. Credits that exhibit well-defined weaknesses and a distinct possibility of loss are considered “classified” and are graded 9 through 12 corresponding to the regulatory definitions of “substandard” (grades 9 and 10) and the more severe “doubtful” (grade 11) and “loss” (grade 12). For residential real estate and home equity and consumer loans, credit quality is based on the aging status of the loan and by payment activity. Nonperforming loans are those loans which are on nonaccrual status or are 90 days or more past due. Below is a summary of the Company’s loan and lease portfolio segments and a discussion of the risk characteristics relevant to each portfolio segment. Commercial and agricultural – loans are to entities within the Company’s local market communities. Loans are for business or agri-business purposes and include working capital lines of credit secured by accounts receivable and inventory that are generally renewable annually and term loans secured by equipment with amortizations based on the expected life of the underlying collateral, generally three Renewable energy – loans are for the purpose of financing solar related projects and may include construction draw notes, operating loans, letters of credit and may entail a tax equity structure. Collateral in a multi-state area includes tangible assets of the borrower, assignment of intangible assets including power purchase agreements, and pledges of permits and licenses. Financing is provided to qualified borrowers throughout the continental United States with an emphasis on the region east of the Rocky Mountains. Auto and light truck – loans are secured by vehicles and borrowers are nationwide. The portfolio predominantly consists of loans to borrowers in the auto rental and commercial auto leasing industries. Borrowers in the auto rental segment are primarily independent auto rental entities with on-airport and off-airport locations, and some insurance replacement business. Loan amortizations are relatively short, generally eighteen months, but up to four years. Auto leasing customers lease to businesses and the Company takes assignment of the lease stream and places its lien on the vehicles. Terms are generally longer than the auto rental sector, three Medium and heavy duty truck – loans and full-service truck leases are secured by heavy-duty trucks, commonly Class 8 trucks, and are generally personally guaranteed. In addition to economic risks, collateral risk is significant. Financing is generally at full cost, plus additional expenditures to get the vehicle operational, such as taxes, insurance and fees. It takes three Aircraft – loans are to domestic and foreign borrowers with the domestic segment further divided into two pools: 1) personal and business use, and 2) dealers and operators. The Company’s focus for the foreign sector is Latin America, principally Mexico and Brazil. Loans are primarily secured by new and used business jets and helicopters, with appropriate advances, amortizations of ten Construction equipment – loans are to borrowers throughout the country secured by specific equipment. The borrowers include highway and road builders, asphalt producers and pavers, suppliers of aggregate products, site developers, frac sand operations, general construction equipment dealers and operators, and crane rental entities. Generally, loans include personal guarantees. The construction equipment industry is heavily dependent on both the U.S. and global economy. Market growth is reliant on investments from public and private sectors into urbanization and infrastructure projects. Commercial real estate – loans are generally to entities within the local market communities served by the Company with advances generally within regulatory guidelines. Historically, the Company’s exposure to commercial real estate has been primarily to the less risky owner-occupied segment. The non-owner-occupied segment accounts for less than half of the commercial real estate portfolio and includes hotels, apartment complexes and warehousing facilities. There is limited exposure to construction loans. Many commercial real estate loans carry personal guarantees. Additional risks in the commercial real estate portfolio stem from geographical concentration in northern Indiana and southwest Michigan and general economic conditions. Residential real estate and home equity – loans predominantly include one-to-four family mortgages to borrowers in the Company’s local market communities and are appropriately underwritten and secured by residential real estate. Consumer – loans are to individuals in the Company’s local markets and auto loans are generally secured by personal vehicles and appropriately underwritten. The following table shows the amortized cost of loans and leases, segregated by portfolio segment, credit quality rating and year of origination as of March 31, 2024 and gross charge-offs for the three months ended March 31, 2024. Term Loans and Leases by Origination Year (Dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and agricultural Grades 1-6 $ 29,804 $ 134,685 $ 103,941 $ 63,360 $ 36,297 $ 30,654 $ 293,531 $ — $ 692,272 Grades 7-12 951 7,037 8,377 4,000 423 274 18,193 — 39,255 Total commercial and agricultural 30,755 141,722 112,318 67,360 36,720 30,928 311,724 — 731,527 Current period gross charge-offs — 132 43 543 — — 6,350 — 7,068 Renewable energy Grades 1-6 6,608 193,477 23,558 80,269 27,553 82,197 — — 413,662 Grades 7-12 — — — — — — — — — Total renewable energy 6,608 193,477 23,558 80,269 27,553 82,197 — — 413,662 Current period gross charge-offs — — — — — — — — — Auto and light truck Grades 1-6 168,080 494,575 202,078 51,822 20,256 14,804 — — 951,615 Grades 7-12 857 37,092 4,504 453 2,045 899 — — 45,850 Total auto and light truck 168,937 531,667 206,582 52,275 22,301 15,703 — — 997,465 Current period gross charge-offs — — — — — 1 — — 1 Medium and heavy duty truck Grades 1-6 18,478 91,212 105,988 39,785 21,221 14,407 — — 291,091 Grades 7-12 — 3,160 7,450 1,675 — 423 — — 12,708 Total medium and heavy duty truck 18,478 94,372 113,438 41,460 21,221 14,830 — — 303,799 Current period gross charge-offs — — — — — — — — — Aircraft Grades 1-6 90,279 261,627 333,332 187,762 130,375 56,277 7,275 — 1,066,927 Grades 7-12 — 10,118 12,605 3,663 4,262 6,483 — — 37,131 Total aircraft 90,279 271,745 345,937 191,425 134,637 62,760 7,275 — 1,104,058 Current period gross charge-offs — — — 15 — 53 — — 68 Construction equipment Grades 1-6 96,604 430,306 305,122 116,595 56,930 29,149 27,423 2,075 1,064,204 Grades 7-12 269 6,938 19,752 920 502 — — — 28,381 Total construction equipment 96,873 437,244 324,874 117,515 57,432 29,149 27,423 2,075 1,092,585 Current period gross charge-offs — — 292 — — — — — 292 Commercial real estate Grades 1-6 60,793 324,452 243,652 143,542 98,147 251,758 275 — 1,122,619 Grades 7-12 65 528 4,990 3,388 653 3,352 — — 12,976 Total commercial real estate 60,858 324,980 248,642 146,930 98,800 255,110 275 — 1,135,595 Current period gross charge-offs — — — — — — — — — Residential real estate and home equity Performing 20,351 81,747 110,182 87,815 85,434 98,432 153,634 4,683 642,278 Nonperforming — 145 — — — 761 553 119 1,578 Total residential real estate and home equity 20,351 81,892 110,182 87,815 85,434 99,193 154,187 4,802 643,856 Current period gross charge-offs — 3 — — — — 10 — 13 Consumer Performing 12,668 47,816 42,447 16,962 5,037 2,589 12,045 — 139,564 Nonperforming 14 222 241 130 24 30 — — 661 Total consumer 12,682 48,038 42,688 17,092 5,061 2,619 12,045 — 140,225 Current period gross charge-offs $ 113 $ 29 $ 58 $ 25 $ 1 $ — $ 3 $ — $ 229 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, 2023. Term Loans and Leases by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and agricultural Grades 1-6 $ 155,656 $ 124,717 $ 68,473 $ 39,708 $ 18,658 $ 15,856 $ 299,495 $ — $ 722,563 Grades 7-12 7,502 2,657 4,886 501 293 418 27,403 — 43,660 Total commercial and agricultural 163,158 127,374 73,359 40,209 18,951 16,274 326,898 — 766,223 Current period gross charge-offs 668 499 15 17 4 — 3,102 — 4,305 Renewable energy Grades 1-6 177,364 23,679 86,836 29,138 56,935 25,756 — — 399,708 Grades 7-12 — — — — — — — — — Total renewable energy 177,364 23,679 86,836 29,138 56,935 25,756 — — 399,708 Current period gross charge-offs — — — — — — — — — Auto and light truck Grades 1-6 603,406 248,701 64,182 24,986 13,573 5,287 — — 960,135 Grades 7-12 908 1,848 474 2,490 632 425 — — 6,777 Total auto and light truck 604,314 250,549 64,656 27,476 14,205 5,712 — — 966,912 Current period gross charge-offs 126 360 128 33 19 63 — — 729 Medium and heavy duty truck Grades 1-6 96,254 114,490 44,069 24,645 15,264 4,202 — — 298,924 Grades 7-12 3,565 7,010 1,675 — 773 — — — 13,023 Total medium and heavy duty truck 99,819 121,500 45,744 24,645 16,037 4,202 — — 311,947 Current period gross charge-offs — — — — — — — — — Aircraft Grades 1-6 269,635 355,175 197,579 140,744 37,244 36,936 6,420 — 1,043,733 Grades 7-12 10,120 9,475 3,704 4,543 — 6,597 — — 34,439 Total aircraft 279,755 364,650 201,283 145,287 37,244 43,533 6,420 — 1,078,172 Current period gross charge-offs — — — — — — — — — Construction equipment Grades 1-6 459,884 333,008 131,838 64,998 29,543 7,803 26,044 2,346 1,055,464 Grades 7-12 6,915 20,826 1,037 510 — — — — 29,288 Total construction equipment 466,799 353,834 132,875 65,508 29,543 7,803 26,044 2,346 1,084,752 Current period gross charge-offs — 44 10 — — — — — 54 Commercial real estate Grades 1-6 336,287 251,055 148,597 105,282 86,452 187,306 275 — 1,115,254 Grades 7-12 678 5,313 2,576 651 4,372 1,017 — — 14,607 Total commercial real estate 336,965 256,368 151,173 105,933 90,824 188,323 275 — 1,129,861 Current period gross charge-offs — 39 30 — 179 — — — 248 Residential real estate and home equity Performing 87,767 110,058 89,458 88,232 30,681 72,211 152,037 5,575 636,019 Nonperforming — 107 74 — 414 756 536 67 1,954 Total residential real estate and home equity 87,767 110,165 89,532 88,232 31,095 72,967 152,573 5,642 637,973 Current period gross charge-offs — — — — — 54 39 8 101 Consumer Performing 53,023 47,789 19,739 6,286 2,539 1,021 12,063 — 142,460 Nonperforming 63 246 123 31 28 6 — — 497 Total consumer $ 53,086 $ 48,035 $ 19,862 $ 6,317 $ 2,567 $ 1,027 $ 12,063 $ — $ 142,957 Current period gross charge-offs $ 541 $ 455 $ 138 $ 28 $ 17 $ 3 $ 29 $ — $ 1,211 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 Nonaccrual Total March 31, 2024 Commercial and agricultural $ 725,177 $ 237 $ 115 $ — $ 725,529 $ 5,998 $ 731,527 Renewable energy 413,662 — — — 413,662 — 413,662 Auto and light truck 993,324 258 — — 993,582 3,883 997,465 Medium and heavy duty truck 303,799 — — — 303,799 — 303,799 Aircraft 1,095,832 168 4 — 1,096,004 8,054 1,104,058 Construction equipment 1,090,144 1,706 — — 1,091,850 735 1,092,585 Commercial real estate 1,134,381 — — — 1,134,381 1,214 1,135,595 Residential real estate and home equity 640,581 1,533 164 25 642,303 1,553 643,856 Consumer 138,782 744 38 1 139,565 660 140,225 Total $ 6,535,682 $ 4,646 $ 321 $ 26 $ 6,540,675 $ 22,097 $ 6,562,772 December 31, 2023 Commercial and agricultural $ 752,947 $ 9 $ — $ — $ 752,956 $ 13,267 $ 766,223 Renewable energy 399,708 — — — 399,708 — 399,708 Auto and light truck 962,226 20 — — 962,246 4,666 966,912 Medium and heavy duty truck 311,915 32 — — 311,947 — 311,947 Aircraft 1,069,830 8,113 229 — 1,078,172 — 1,078,172 Construction equipment 1,078,912 2,044 3,620 — 1,084,576 176 1,084,752 Commercial real estate 1,126,806 — 85 — 1,126,891 2,970 1,129,861 Residential real estate and home equity 634,345 1,623 51 142 636,161 1,812 637,973 Consumer 141,489 864 107 7 142,467 490 142,957 Total $ 6,478,178 $ 12,705 $ 4,092 $ 149 $ 6,495,124 $ 23,381 $ 6,518,505 Accrued interest receivable on loans and leases at March 31, 2024 and December 31, 2023 was $26.01 million and $25.35 million, respectively. The following table shows the amortized cost of loans and leases that were both experiencing financial difficulty and modified during the three months ended March 31, 2024 and March 31, 2023, respectively, segregated by portfolio segment and type of modification. The percentage of the amortized cost of loans and leases that were modified to borrowers in financial distress as compared to the amortized cost of each segment of financial receivable is also presented below. (Dollars in thousands) Payment Term Interest Combination % of Total Three Months Ended March 31, 2024 Commercial and agricultural $ — $ 108 $ — $ — 0.01 % Auto and light truck — — — 25,583 2.56 Total $ — $ 108 $ — $ 25,583 0.39 % Three Months Ended March 31, 2023 Commercial and agricultural $ — $ 752 $ — $ — 0.09 % Construction equipment — 3,912 — — 0.39 Commercial real estate — — 511 — 0.05 Total $ — $ 4,664 $ 511 $ — 0.08 % There were $2.63 million and $0.00 million in commitments to lend additional amounts to the borrowers included in the previous table at March 31, 2024 and March 31, 2023, respectively. The Company closely monitors the performance of loans and leases that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table shows the performance of such loans and leases that have been modified during the twelve months ended March 31, 2024 and the three months ended March 31, 2023. (Dollars in thousands) Current 30-59 60-89 90 Days or Total Twelve months ended March 31, 2024 Commercial and agricultural $ 1,798 $ — $ — $ 1,869 $ 1,869 Auto and light truck 25,583 — — — — Medium and heavy duty truck 10,699 — — — — Construction equipment 1,372 — — — — Commercial real estate 269 — — — — Total $ 39,721 $ — $ — $ 1,869 $ 1,869 Three months ended March 31, 2023 Commercial and agricultural $ 752 $ — $ — $ — $ — Construction equipment 3,912 — — — — Commercial real estate 511 — — — — Total $ 5,175 $ — $ — $ — $ — The following table shows the financial effect of loan and lease modifications during the periods presented in the previous table to borrowers experiencing financial difficulty. Weighted- Weighted- Weighted- Combination Weighted-Average Payment Delay and Term Extension (in months) Twelve months ended March 31, 2024 Commercial and agricultural — % 9 6 35 Auto and light truck — 0 0 3 Medium and heavy duty truck — 0 0 6 Construction equipment — 4 0 0 Commercial real estate — 0 3 0 Total — % 4 6 5 Three months ended March 31, 2023 Commercial and agricultural — % 3 0 0 Construction equipment — 5 0 0 Commercial real estate 3.00 0 0 0 Total 3.00 % 4 0 0 There were no modified loans that had a payment default during the three months ended March 31, 2024 and March 31, 2023, respectively, and were modified in the twelve months prior to that default to a borrower experiencing financial difficulty. Upon the Company’s determination that a modified loan or lease has subsequently been deemed uncollectible, the loan or lease is written off. Therefore, the amortized cost of the loan is reduced by the uncollectible amount and the allowance for loan and lease losses is adjusted by the same amount.

Allowance for Credit Losses

Allowance for Credit Losses	3 Months Ended
Allowance for Credit Losses	Mar. 31, 2024
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Allowance for Credit Losses	Allowance for Credit Losses Allowance for Loan and Lease Losses The allowance for credit losses is established for current expected credit losses on the Company’s loan and lease portfolios utilizing guidance in Accounting Standards Codification (ASC) Topic 326. 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 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 following table shows the changes in the allowance for loan and lease losses, segregated by portfolio segment, for the three months ended March 31, 2024 and 2023. (Dollars in thousands) Commercial and Renewable energy Auto and Medium Aircraft Construction Commercial Residential Consumer Total March 31, 2024 Balance, beginning of period $ 17,385 $ 6,610 $ 16,858 $ 8,965 $ 37,653 $ 26,510 $ 23,690 $ 7,698 $ 2,183 $ 147,552 Charge-offs 7,068 — 1 — 68 292 — 13 229 7,671 Recoveries 86 — 653 — 368 199 181 8 53 1,548 Net charge-offs (recoveries) 6,982 — (652) — (300) 93 (181) 5 176 6,123 Provision (recovery of provision) 6,860 248 74 (177) (1,029) 387 (27) 115 144 6,595 Balance, end of period $ 17,263 $ 6,858 $ 17,584 $ 8,788 $ 36,924 $ 26,804 $ 23,844 $ 7,808 $ 2,151 $ 148,024 March 31, 2023 Balance, beginning of period $ 14,635 $ 7,217 $ 18,634 $ 7,566 $ 41,093 $ 24,039 $ 17,431 $ 6,478 $ 2,175 $ 139,268 Charge-offs 564 — 112 — — 1 39 1 324 1,041 Recoveries 172 — 541 — 226 — 3 233 60 1,235 Net charge-offs (recoveries) 392 — (429) — (226) 1 36 (232) 264 (194) Provision (recovery of provision) 1,844 (929) (505) 263 (1,186) 1,541 1,905 (89) 205 3,049 Balance, end of period $ 16,087 $ 6,288 $ 18,558 $ 7,829 $ 40,133 $ 25,579 $ 19,300 $ 6,621 $ 2,116 $ 142,511 The allowance for credit losses increased during the quarter in response to loan growth and increased special attention outstandings which are reserved at higher rates. The previous quarter’s forecast adjustment was maintained as it continues to be applicable to economic conditions expected during the forecast period. The Company remains cautious on the forward outlook and our forecast adjustment represents expectations for fragile growth during the forecast period. Ongoing risks include tightened credit conditions, elevated inflation, high interest rates, and continued geopolitical uncertainty. Credit quality metrics reflect higher special attention outstandings during the quarter, continued modest non-performing levels, and low delinquency rates. Charge-off activity during the quarter increased, predominantly due to charge-offs on two accounts in the commercial and agricultural portfolio, offset by ongoing recoveries in our auto and light truck and aircraft portfolios. Commercial and agricultural – the decrease in the allowance in the current quarter was principally due to a decrease in loan balances and the elimination of a specific impairment on one account because of a charge-off during the period, partially offset by higher historical loss rates in the portfolio. Renewable energy – the allowance increased due to higher loan balances. Credit quality remains stable. Auto and light truck – the allowance increased during the quarter due to loan growth and an increase in special attention outstandings which are reserved at higher rates. Medium and heavy duty truck – the allowance decreased due to a decline in loan balances. The near-term industry outlook remains weak due to overcapacity concerns and lower freight rates. Aircraft – the allowance decreased during the quarter as loan growth in the domestic portfolio was offset by a decline in loan balances in the higher reserved foreign segment coupled with lower historical loss rates in the portfolio due to recovery activity. The Company has historically carried a higher allowance in this portfolio due to historical risk volatility. Construction equipment – the allowance increased primarily due to continued loan growth in the portfolio. Commercial real estate – the allowance increased due to loan growth. Higher interest rates and shifting demand dynamics have impacted commercial real estate. The majority of the Company’s real estate exposure is owner-occupied, and exposure to non-owner-occupied office property is minimal. Residential real estate and home equity – the allowance increased due to loan growth. Consumer – the allowance decreased slightly due to lower loan outstandings. Economic Outlook As of March 31, 2024, the most significant economic factors impacting the Company’s loan portfolios are a fragile domestic growth outlook, impacted by elevated inflation, and high interest rates, along with ongoing foreign conflicts and elevated geopolitical uncertainty. Questions surrounding the timing and velocity of future interest rate cuts persist. The Company remains concerned about the impact of tighter credit conditions on the economy and the effect that may have on future economic growth. Consumer stressors are building, and the Company remains concerned about small businesses and their ability to control expenses and compete for labor while absorbing the impact of higher interest rates and higher cost of capital. Tightened lending conditions and the current high-rate environment are impacting commercial real estate activity. The forecast considers global and domestic economic impacts from these factors as well as other key economic factors such as change in gross domestic product and unemployment which may impact the Company’s clients. The Company’s assumption is that economic growth will be below trend during the forecast period 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 risks and economic uncertainty, the Company’s future loss estimates may vary considerably from the March 31, 2024 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. Three Months Ended (Dollars in thousands) 2024 2023 Balance, beginning of period $ 8,182 $ 5,616 Provision 882 1,035 Balance, end of period $ 9,064 $ 6,651

Lease Investments

Lease Investments	3 Months Ended
Lease Investments	Mar. 31, 2024
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, Renewable Energy, 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 interest income recognized from direct finance lease payments and operating lease equipment rental income and related depreciation expense. Three Months Ended (Dollars in thousands) 2024 2023 Direct finance leases: Interest income on lease receivable $ 3,439 $ 3,121 Operating leases: Income related to lease payments $ 1,671 $ 2,503 Depreciation expense 1,288 2,022 Income related to reimbursements from lessees for personal property tax on operating leased equipment for the three months ended March 31, 2024 and 2023 was $0.12 million and $0.22 million. Expense related to personal property tax payments on operating leased equipment for the three months ended March 31, 2024 and 2023 was $0.12 million and $0.22 million, respectively.

Mortgage Servicing Rights

Mortgage Servicing Rights	3 Months Ended
Mortgage Servicing Rights	Mar. 31, 2024
Transfers and Servicing of Financial Assets [Abstract]
Mortgage Servicing Rights	Mortgage Servicing Rights The Company recognizes the rights to service residential 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. The unpaid principal balance of residential mortgage loans serviced for third parties was $795.99 million and $806.05 million at March 31, 2024 and December 31, 2023, respectively. Mortgage servicing rights (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. The following table shows changes in the carrying value of MSRs and the associated valuation allowance. Three Months Ended (Dollars in thousands) 2024 2023 Mortgage servicing rights: Balance at beginning of period $ 3,670 $ 4,137 Additions 88 91 Amortization (184) (221) Carrying value before valuation allowance at end of period 3,574 4,007 Valuation allowance: Balance at beginning of period — — Impairment recoveries — — Balance at end of period $ — $ — Net carrying value of mortgage servicing rights at end of period $ 3,574 $ 4,007 Fair value of mortgage servicing rights at end of period $ 8,357 $ 8,053 At March 31, 2024 and 2023, the fair value of MSRs exceeded the carrying value reported in the Consolidated Statements of Financial Condition by $4.78 million and $4.05 million, respectively. This difference represents increases in the fair value of certain MSRs that could not be recorded above cost basis. Mortgage loan contractual servicing fees, including late fees and ancillary income, were $0.61 million and $0.66 million for the three months ended March 31, 2024 and 2023, respectively. Mortgage loan contractual servicing fees are included in Mortgage Banking on the Consolidated Statements of Income.

Commitments and Financial Instr

Commitments and Financial Instruments with Off-Balance-Sheet Risk	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Financial Instruments with Off-Balance-Sheet Risk	Commitments and Financial Instruments with Off-Balance-Sheet Risk Financial Instruments with Off-Balance-Sheet Risk — 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. The following table shows financial instruments whose contract amounts represent credit risk. (Dollars in thousands) March 31, December 31, Amounts of commitments: Loan commitments to extend credit $ 1,455,411 $ 1,454,506 Standby letters of credit $ 17,596 $ 17,287 Commercial and similar letters of credit $ 2,829 $ 7,047 The 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. 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. 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. Standby letters of credit are conditional commitments that guarantee the performance of a client to a third party. The credit risk involved in and collateral obtained when issuing standby letters of credit is essentially the same as that 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	3 Months Ended
Derivative Financial Instruments	Mar. 31, 2024
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 8 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 institutions 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. 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 March 31, 2024 Interest rate swap contracts $ 1,092,725 Other assets $ 21,526 Other liabilities $ 21,936 Loan commitments 5,047 Mortgages held for sale 168 N/A — Forward contracts - mortgage loan 5,750 N/A — Mortgages held for sale 8 Total $ 1,103,522 $ 21,694 $ 21,944 December 31, 2023 Interest rate swap contracts $ 1,085,618 Other assets $ 22,704 Other liabilities $ 23,140 Loan commitments 2,824 Mortgages held for sale 107 N/A — Forward contracts - mortgage loan 3,500 N/A — Mortgages held for sale 16 Total $ 1,091,942 $ 22,811 $ 23,156 The following table shows the amounts included in the Consolidated Statements of Income for non-hedging derivative financial instruments. Gain (loss) Three Months Ended (Dollars in thousands) Statement of Income classification 2024 2023 Interest rate swap contracts Other expense $ 27 $ 99 Interest rate swap contracts Other income 186 195 Loan commitments Mortgage banking 61 25 Forward contracts - mortgage loan Mortgage banking 8 (40) Total $ 282 $ 279 The following table shows the offsetting of financial assets and derivative assets. 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 Financial Instruments Cash Collateral Received Net Amount March 31, 2024 Interest rate swaps $ 21,526 $ — $ 21,526 $ — $ 16,405 $ 5,121 December 31, 2023 Interest rate swaps $ 22,704 $ — $ 22,704 $ — $ 10,795 $ 11,909 The following table shows the offsetting of financial liabilities and derivative liabilities. 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 March 31, 2024 Interest rate swaps $ 21,936 $ — $ 21,936 $ — $ — $ 21,936 Repurchase agreements 62,591 — 62,591 62,591 — — Total $ 84,527 $ — $ 84,527 $ 62,591 $ — $ 21,936 December 31, 2023 Interest rate swaps $ 23,140 $ — $ 23,140 $ — $ — $ 23,140 Repurchase agreements 55,809 — 55,809 55,809 — — Total $ 78,949 $ — $ 78,949 $ 55,809 $ — $ 23,140 If a default in performance of any obligation of a repurchase agreement occurs, each party will set-off property held in respect of transactions against obligations owing in respect of any other transactions. At March 31, 2024 and December 31, 2023, repurchase agreements had a remaining contractual maturity of $61.54 million and $54.46 million in overnight and $1.05 million and $1.35 million in up to 30 days, respectively and were collateralized by U.S. Treasury and Federal agencies securities.

Variable Interest Entities

Variable Interest Entities	3 Months Ended
Variable Interest Entities	Mar. 31, 2024
Variable Interest Entities [Abstract]
Variable Interest Entities Disclosure	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 $0.80 million and $0.66 million for the three months ended March 31, 2024 and 2023, respectively. The Company also recognized $5.07 million and $17.49 million of investment tax credits for the three months ended March 31, 2024 and 2023, 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, the Company is 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 includes 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 projects, 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. (Dollars in thousands) March 31, 2024 December 31, 2023 Investment carrying amount $ 76,374 $ 79,228 Unfunded capital and other commitments 71,407 80,719 Maximum exposure to loss 66,560 59,649 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 March 31, 2024 and December 31, 2023, approximately $79.54 million and $87.37 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 VIEs 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 is 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 March 31, 2024. (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 7.07 % 9/15/2037 Total $ 58,764 (1) Fixed rate through life of debt. (2) 3-Month Term SOFR + the 3-Month tenor spread adjustment + 1.48% through remaining life of debt.

Earnings Per Share

Earnings Per Share	3 Months Ended
Earnings Per Share	Mar. 31, 2024
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. There were no stock options outstanding as of March 31, 2024 and 2023. The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share. Three Months Ended (Dollars in thousands - except per share amounts) 2024 2023 Distributed earnings allocated to common stock $ 8,309 $ 7,892 Undistributed earnings allocated to common stock 20,870 22,977 Net earnings allocated to common stock 29,179 30,869 Net earnings allocated to participating securities 276 255 Net income allocated to common stock and participating securities $ 29,455 $ 31,124 Weighted average shares outstanding for basic earnings per common share 24,459,088 24,687,087 Dilutive effect of stock compensation — — Weighted average shares outstanding for diluted earnings per common share 24,459,088 24,687,087 Basic earnings per common share $ 1.19 $ 1.25 Diluted earnings per common share $ 1.19 $ 1.25

Stock Based Compensation

Stock Based Compensation	3 Months Ended
Stock Based Compensation	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Stock Based Compensation	Stock Based Compensation As of March 31, 2024, the Company had four active stock-based employee compensation plans, which are more fully described in Note 16 of the Consolidated Financial Statements in 1st Source’s Annual Report on Form 10-K for the year ended December 31, 2023. 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 March 31, 2024. Stock-based compensation expense for all stock-based compensation awards granted is based on the grant-date fair value. For all awards except stock option awards, the grant date fair value is either the fair market value per share or book value per share (corresponding to the type of stock awarded) as of the grant date. For stock option awards, the grant date fair value is estimated using the Black-Scholes option pricing model. For all awards, the Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award, for which the Company uses the related vesting term. Total fair value of options vested and expensed was zero for the three months ended March 31, 2024 and 2023. As of March 31, 2024 and 2023 there were no outstanding stock options. There were no stock options exercised during the three months ended March 31, 2024 and 2023. All shares issued in connection with stock option exercises are issued from available treasury stock. As of March 31, 2024, there was $13.66 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of 3.61 years.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
Accumulated Other Comprehensive Loss	Mar. 31, 2024
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 income (loss) related to unrealized gains and losses on available-for-sale securities. Three Months Ended March 31, Affected Line Item in the Consolidated Statements of Income (Dollars in thousands) 2024 2023 Realized losses included in net income $ — $ (44) Losses on investment securities available-for-sale — (44) Income before income taxes Tax effect — 10 Income tax expense Net of tax $ — $ (34) Net income

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The total amount of unrecognized tax benefits that would affect the effective tax rate if recognized was zero at March 31, 2024 and December 31, 2023. Interest and penalties are recognized through the income tax provision. For the three months ended March 31, 2024 and 2023, the Company recognized no interest or penalties. There were no accrued interest and penalties at March 31, 2024 and December 31, 2023. Tax years that remain open and subject to audit include the federal 2020-2023 years and the Indiana 2020-2023 years. The Company does not anticipate a significant change in the amount of uncertain tax positions within the next 12 months.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
Fair Value Measurements	Mar. 31, 2024
Fair Value Disclosures [Abstract]
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. 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 is 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. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. 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 derivatives or best-best efforts forward sales commitments. At March 31, 2024 and December 31, 2023, all mortgages held for sale were carried at fair value. The following table shows the differences between the 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. (Dollars in thousands) Fair value Aggregate Excess of fair value carrying amount over (under) unpaid principal March 31, 2024 Mortgages held for sale reported at fair value $ 2,881 $ 2,606 $ 275 (1) December 31, 2023 Mortgages held for sale reported at fair value $ 1,442 $ 1,297 $ 145 (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 includes a credit spread assumption. Mortgages held for sale and the related loan commitments and forward contracts (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 March 31, 2024 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 545,675 $ 357,210 $ — $ 902,885 U.S. States and political subdivisions securities — 86,605 1,044 87,649 Mortgage-backed securities — Federal agencies — 585,137 — 585,137 Corporate debt securities — 6,980 — 6,980 Foreign government and other securities — 593 — 593 Total debt securities available-for-sale 545,675 1,036,525 1,044 1,583,244 Mortgages held for sale — 2,881 — 2,881 Accrued income and other assets (interest rate swap agreements) — 21,526 — 21,526 Total $ 545,675 $ 1,060,932 $ 1,044 $ 1,607,651 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 21,936 $ — $ 21,936 Total $ — $ 21,936 $ — $ 21,936 December 31, 2023 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 541,461 $ 381,405 $ — $ 922,866 U.S. States and political subdivisions securities — 91,403 1,161 92,564 Mortgage-backed securities — Federal agencies — 598,252 — 598,252 Corporate debt securities — 8,329 — 8,329 Foreign government and other securities — 589 — 589 Total debt securities available-for-sale 541,461 1,079,978 1,161 1,622,600 Mortgages held for sale — 1,442 — 1,442 Accrued income and other assets (interest rate swap agreements) — 22,704 — 22,704 Total $ 541,461 $ 1,104,124 $ 1,161 $ 1,646,746 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 23,140 $ — $ 23,140 Total $ — $ 23,140 $ — $ 23,140 The following table shows changes in Level 3 assets measured at fair value on a recurring basis for the quarter ended March 31, 2024 and 2023. (Dollars in thousands) U.S. States and Beginning balance January 1, 2024 $ 1,161 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (loss) 63 Purchases — Issuances — Sales — Settlements — Maturities (180) Transfers into Level 3 — Transfers out of Level 3 — Ending balance March 31, 2024 $ 1,044 Beginning balance January 1, 2023 $ 1,464 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (loss) 32 Purchases 3,000 Issuances — Sales — Settlements — Maturities (175) Transfers into Level 3 — Transfers out of Level 3 — Ending balance March 31, 2023 $ 4,321 There were no gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at March 31, 2024 or 2023. The following table shows the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring basis. (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Weighted Average March 31, 2024 Debt securities available-for sale Direct placement municipal securities $ 1,044 Discounted cash flows Credit spread assumption 3.75% - 4.48% 3.93 % December 31, 2023 Debt securities available-for sale Direct placement municipal securities $ 1,161 Discounted cash flows Credit spread assumption 0.31% - 5.28% 4.28 % 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 gains 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% 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 quarter ended March 31, 2024: collateral-dependent impaired loans - $6.96 million; mortgage servicing rights - $0.00 million; repossessions - $0.00 million; and other real estate - $0.00 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 March 31, 2024 Collateral-dependent impaired loans $ — $ — $ — $ — Accrued income and other assets (mortgage servicing rights) — — 3,574 3,574 Accrued income and other assets (repossessions) — — 308 308 Accrued income and other assets (other real estate) — — — — Total $ — $ — $ 3,882 $ 3,882 December 31, 2023 Collateral-dependent impaired loans $ — $ — $ 6,289 $ 6,289 Accrued income and other assets (mortgage servicing rights) — — 3,670 3,670 Accrued income and other assets (repossessions) — — 705 705 Accrued income and other assets (other real estate) — — — — Total $ — $ — $ 10,664 $ 10,664 The following table below 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 March 31, 2024 Collateral-dependent impaired loans $ — $ — Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 0% - 0% 0.0 % Mortgage servicing rights 3,574 8,357 Discounted cash flows Constant prepayment rate (CPR) 5.8% - 17.2% 6.5 % Discount rate 12.9% - 13.2% 11.3 % Repossessions 308 331 Appraisals, trade publications and auction values Discount for lack of marketability 0% - 2% 0 % Other real estate — — Appraisals Discount for lack of marketability 0% - 0% 0 % December 31, 2023 Collateral-dependent impaired loans $ 6,289 $ 6,289 Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 10% - 20% 13.9 % Mortgage servicing rights 3,670 8,151 Discounted cash flows Constant prepayment rate (CPR) 6.1% - 17.6% 7.3 % Discount rate 11.0% - 13.1% 11.2 % Repossessions 705 757 Appraisals, trade publications and auction values Discount for lack of marketability 0% - 10% 8 % 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 March 31, 2024 Assets: Cash and due from banks $ 41,533 $ 41,533 $ 41,533 $ — $ — Federal funds sold and interest bearing deposits with other banks 39,381 39,381 39,381 — — Investment securities, available-for-sale 1,583,244 1,583,244 545,675 1,036,525 1,044 Other investments 25,075 25,075 25,075 — — Mortgages held for sale 2,881 2,881 — 2,881 — Loans and leases, net of allowance for loan and lease losses 6,414,748 6,224,374 — — 6,224,374 Mortgage servicing rights 3,574 8,357 — — 8,357 Accrued interest receivable 30,685 30,685 — 30,685 — Interest rate swaps 21,526 21,526 — 21,526 — Liabilities: Deposits $ 7,055,311 $ 7,048,994 $ 5,253,650 $ 1,795,344 $ — Short-term borrowings 249,580 249,580 83,534 166,046 — Long-term debt and mandatorily redeemable securities 39,406 38,709 — 38,709 — Subordinated notes 58,764 55,494 — 55,494 — Accrued interest payable 32,216 32,216 — 32,216 — Interest rate swaps 21,936 21,936 — 21,936 — Off-balance-sheet instruments * — 118 — 118 — December 31, 2023 Assets: Cash and due from banks $ 77,474 $ 77,474 $ 77,474 $ — $ — Federal funds sold and interest bearing deposits with other banks 52,194 52,194 52,194 — — Investment securities, available-for-sale 1,622,600 1,622,600 541,461 1,079,978 1,161 Other investments 25,075 25,075 25,075 — — Mortgages held for sale 1,442 1,442 — 1,442 — Loans and leases, net of allowance for loan and lease losses 6,370,953 6,204,791 — — 6,204,791 Mortgage servicing rights 3,670 8,151 — — 8,151 Accrued interest receivable 30,232 30,232 — 30,232 — Interest rate swaps 22,704 22,704 — 22,704 — Liabilities: Deposits $ 7,038,581 $ 7,033,549 $ 5,299,896 $ 1,733,653 $ — Short-term borrowings 312,359 312,359 56,013 256,346 — Long-term debt and mandatorily redeemable securities 47,911 47,098 — 47,098 — Subordinated notes 58,764 55,842 — 55,842 — Accrued interest payable 29,520 29,520 — 29,520 — Interest rate swaps 23,140 23,140 — 23,140 — Off-balance-sheet instruments * — 120 — 120 — * 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. Other significant assets, such as premises and equipment, other assets, and liabilities not defined as financial instruments, are not included in the above disclosures. Also, the fair value estimates for deposits do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market.

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Accounting Policies (Policies)

Accounting Policies (Policies)	3 Months Ended
Accounting Policies (Policies)	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation – The accompanying unaudited consolidated financial statements reflect all adjustments (all of which are normal and recurring in nature) which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position, the results of operations, changes in comprehensive income (loss), changes in shareholders’ equity, and cash flows for the periods presented. These unaudited consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission (SEC) and, therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been omitted. The Notes to the Consolidated Financial Statements appearing in 1st Source Corporation’s Annual Report on Form 10-K (2023 Annual Report), which include descriptions of significant accounting policies, should be read in conjunction with these interim financial statements. The Consolidated Statement of Financial Condition at December 31, 2023 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current period presentation.
Use of Estimates in the Preparation of Financial Statements	Use of Estimates in the Preparation of Financial Statements – Financial statements prepared in accordance with 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 expense during the reporting period. Actual results could differ from those estimates.
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 other 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 and is excluded from the calculation of the allowance for credit losses. 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. Occasionally, the Company modifies loans and leases to borrowers in financial distress (typically denoted by internal credit quality graded “substandard” or worse) by providing term extensions, other-than-insignificant payment delays, or interest rate reductions. In some cases, a combination of modifications are made to the same loan or lease. These modifications typically result from the Company’s loss mitigation activities. 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.

Investment Securities (Tables)

Investment Securities (Tables)	3 Months Ended
Investment Securities (Tables)	Mar. 31, 2024
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 March 31, 2024 U.S. Treasury and Federal agencies securities $ 958,300 $ 13 $ (55,428) $ 902,885 U.S. States and political subdivisions securities 92,875 223 (5,449) 87,649 Mortgage-backed securities — Federal agencies 667,973 64 (82,900) 585,137 Corporate debt securities 7,044 — (64) 6,980 Foreign government and other securities 600 — (7) 593 Total debt securities available-for-sale $ 1,726,792 $ 300 $ (143,848) $ 1,583,244 December 31, 2023 U.S. Treasury and Federal agencies securities $ 979,530 $ 178 $ (56,842) $ 922,866 U.S. States and political subdivisions securities 97,522 508 (5,466) 92,564 Mortgage-backed securities — Federal agencies 676,257 476 (78,481) 598,252 Corporate debt securities 8,448 — (119) 8,329 Foreign government and other securities 600 — (11) 589 Total debt securities available-for-sale $ 1,762,357 $ 1,162 $ (140,919) $ 1,622,600
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 March 31, 2024. 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 $ 298,957 $ 292,127 Due after one year through five years 727,883 674,372 Due after five years through ten years 13,151 12,729 Due after ten years 18,828 18,879 Mortgage-backed securities 667,973 585,137 Total debt securities available-for-sale $ 1,726,792 $ 1,583,244
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 March 31, 2024, the Company’s available-for-sale securities portfolio consisted of 661 securities, 606 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 March 31, 2024 U.S. Treasury and Federal agencies securities $ 8,812 $ (84) $ 883,797 $ (55,344) $ 892,609 $ (55,428) U.S. States and political subdivisions securities 5,194 (114) 64,560 (5,335) 69,754 (5,449) Mortgage-backed securities - Federal agencies 19,900 (73) 537,697 (82,827) 557,597 (82,900) Corporate debt securities — — 6,980 (64) 6,980 (64) Foreign government and other securities — — 593 (7) 593 (7) Total debt securities available-for-sale $ 33,906 $ (271) $ 1,493,627 $ (143,577) $ 1,527,533 $ (143,848) December 31, 2023 U.S. Treasury and Federal agencies securities $ — $ — $ 913,417 $ (56,842) $ 913,417 $ (56,842) U.S. States and political subdivisions securities 1,251 (2) 69,747 (5,464) 70,998 (5,466) Mortgage-backed securities - Federal agencies 8,553 (98) 550,748 (78,383) 559,301 (78,481) Corporate debt securities — — 8,329 (119) 8,329 (119) Foreign government and other securities — — 589 (11) 589 (11) Total debt securities available-for-sale $ 9,804 $ (100) $ 1,542,830 $ (140,819) $ 1,552,634 $ (140,919)
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. Three Months Ended (Dollars in thousands) 2024 2023 Gross realized gains $ — $ 1,286 Gross realized losses — (1,330) Net realized losses $ — $ (44)

Loan and Lease Financings (Tabl

Loan and Lease Financings (Tables)	3 Months Ended
Loan and Lease Financings (Tables)	Mar. 31, 2024
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 March 31, 2024 and gross charge-offs for the three months ended March 31, 2024. Term Loans and Leases by Origination Year (Dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and agricultural Grades 1-6 $ 29,804 $ 134,685 $ 103,941 $ 63,360 $ 36,297 $ 30,654 $ 293,531 $ — $ 692,272 Grades 7-12 951 7,037 8,377 4,000 423 274 18,193 — 39,255 Total commercial and agricultural 30,755 141,722 112,318 67,360 36,720 30,928 311,724 — 731,527 Current period gross charge-offs — 132 43 543 — — 6,350 — 7,068 Renewable energy Grades 1-6 6,608 193,477 23,558 80,269 27,553 82,197 — — 413,662 Grades 7-12 — — — — — — — — — Total renewable energy 6,608 193,477 23,558 80,269 27,553 82,197 — — 413,662 Current period gross charge-offs — — — — — — — — — Auto and light truck Grades 1-6 168,080 494,575 202,078 51,822 20,256 14,804 — — 951,615 Grades 7-12 857 37,092 4,504 453 2,045 899 — — 45,850 Total auto and light truck 168,937 531,667 206,582 52,275 22,301 15,703 — — 997,465 Current period gross charge-offs — — — — — 1 — — 1 Medium and heavy duty truck Grades 1-6 18,478 91,212 105,988 39,785 21,221 14,407 — — 291,091 Grades 7-12 — 3,160 7,450 1,675 — 423 — — 12,708 Total medium and heavy duty truck 18,478 94,372 113,438 41,460 21,221 14,830 — — 303,799 Current period gross charge-offs — — — — — — — — — Aircraft Grades 1-6 90,279 261,627 333,332 187,762 130,375 56,277 7,275 — 1,066,927 Grades 7-12 — 10,118 12,605 3,663 4,262 6,483 — — 37,131 Total aircraft 90,279 271,745 345,937 191,425 134,637 62,760 7,275 — 1,104,058 Current period gross charge-offs — — — 15 — 53 — — 68 Construction equipment Grades 1-6 96,604 430,306 305,122 116,595 56,930 29,149 27,423 2,075 1,064,204 Grades 7-12 269 6,938 19,752 920 502 — — — 28,381 Total construction equipment 96,873 437,244 324,874 117,515 57,432 29,149 27,423 2,075 1,092,585 Current period gross charge-offs — — 292 — — — — — 292 Commercial real estate Grades 1-6 60,793 324,452 243,652 143,542 98,147 251,758 275 — 1,122,619 Grades 7-12 65 528 4,990 3,388 653 3,352 — — 12,976 Total commercial real estate 60,858 324,980 248,642 146,930 98,800 255,110 275 — 1,135,595 Current period gross charge-offs — — — — — — — — — Residential real estate and home equity Performing 20,351 81,747 110,182 87,815 85,434 98,432 153,634 4,683 642,278 Nonperforming — 145 — — — 761 553 119 1,578 Total residential real estate and home equity 20,351 81,892 110,182 87,815 85,434 99,193 154,187 4,802 643,856 Current period gross charge-offs — 3 — — — — 10 — 13 Consumer Performing 12,668 47,816 42,447 16,962 5,037 2,589 12,045 — 139,564 Nonperforming 14 222 241 130 24 30 — — 661 Total consumer 12,682 48,038 42,688 17,092 5,061 2,619 12,045 — 140,225 Current period gross charge-offs $ 113 $ 29 $ 58 $ 25 $ 1 $ — $ 3 $ — $ 229 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, 2023. Term Loans and Leases by Origination Year (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Converted to Term Total Commercial and agricultural Grades 1-6 $ 155,656 $ 124,717 $ 68,473 $ 39,708 $ 18,658 $ 15,856 $ 299,495 $ — $ 722,563 Grades 7-12 7,502 2,657 4,886 501 293 418 27,403 — 43,660 Total commercial and agricultural 163,158 127,374 73,359 40,209 18,951 16,274 326,898 — 766,223 Current period gross charge-offs 668 499 15 17 4 — 3,102 — 4,305 Renewable energy Grades 1-6 177,364 23,679 86,836 29,138 56,935 25,756 — — 399,708 Grades 7-12 — — — — — — — — — Total renewable energy 177,364 23,679 86,836 29,138 56,935 25,756 — — 399,708 Current period gross charge-offs — — — — — — — — — Auto and light truck Grades 1-6 603,406 248,701 64,182 24,986 13,573 5,287 — — 960,135 Grades 7-12 908 1,848 474 2,490 632 425 — — 6,777 Total auto and light truck 604,314 250,549 64,656 27,476 14,205 5,712 — — 966,912 Current period gross charge-offs 126 360 128 33 19 63 — — 729 Medium and heavy duty truck Grades 1-6 96,254 114,490 44,069 24,645 15,264 4,202 — — 298,924 Grades 7-12 3,565 7,010 1,675 — 773 — — — 13,023 Total medium and heavy duty truck 99,819 121,500 45,744 24,645 16,037 4,202 — — 311,947 Current period gross charge-offs — — — — — — — — — Aircraft Grades 1-6 269,635 355,175 197,579 140,744 37,244 36,936 6,420 — 1,043,733 Grades 7-12 10,120 9,475 3,704 4,543 — 6,597 — — 34,439 Total aircraft 279,755 364,650 201,283 145,287 37,244 43,533 6,420 — 1,078,172 Current period gross charge-offs — — — — — — — — — Construction equipment Grades 1-6 459,884 333,008 131,838 64,998 29,543 7,803 26,044 2,346 1,055,464 Grades 7-12 6,915 20,826 1,037 510 — — — — 29,288 Total construction equipment 466,799 353,834 132,875 65,508 29,543 7,803 26,044 2,346 1,084,752 Current period gross charge-offs — 44 10 — — — — — 54 Commercial real estate Grades 1-6 336,287 251,055 148,597 105,282 86,452 187,306 275 — 1,115,254 Grades 7-12 678 5,313 2,576 651 4,372 1,017 — — 14,607 Total commercial real estate 336,965 256,368 151,173 105,933 90,824 188,323 275 — 1,129,861 Current period gross charge-offs — 39 30 — 179 — — — 248 Residential real estate and home equity Performing 87,767 110,058 89,458 88,232 30,681 72,211 152,037 5,575 636,019 Nonperforming — 107 74 — 414 756 536 67 1,954 Total residential real estate and home equity 87,767 110,165 89,532 88,232 31,095 72,967 152,573 5,642 637,973 Current period gross charge-offs — — — — — 54 39 8 101 Consumer Performing 53,023 47,789 19,739 6,286 2,539 1,021 12,063 — 142,460 Nonperforming 63 246 123 31 28 6 — — 497 Total consumer $ 53,086 $ 48,035 $ 19,862 $ 6,317 $ 2,567 $ 1,027 $ 12,063 $ — $ 142,957 Current period gross charge-offs $ 541 $ 455 $ 138 $ 28 $ 17 $ 3 $ 29 $ — $ 1,211
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 Nonaccrual Total March 31, 2024 Commercial and agricultural $ 725,177 $ 237 $ 115 $ — $ 725,529 $ 5,998 $ 731,527 Renewable energy 413,662 — — — 413,662 — 413,662 Auto and light truck 993,324 258 — — 993,582 3,883 997,465 Medium and heavy duty truck 303,799 — — — 303,799 — 303,799 Aircraft 1,095,832 168 4 — 1,096,004 8,054 1,104,058 Construction equipment 1,090,144 1,706 — — 1,091,850 735 1,092,585 Commercial real estate 1,134,381 — — — 1,134,381 1,214 1,135,595 Residential real estate and home equity 640,581 1,533 164 25 642,303 1,553 643,856 Consumer 138,782 744 38 1 139,565 660 140,225 Total $ 6,535,682 $ 4,646 $ 321 $ 26 $ 6,540,675 $ 22,097 $ 6,562,772 December 31, 2023 Commercial and agricultural $ 752,947 $ 9 $ — $ — $ 752,956 $ 13,267 $ 766,223 Renewable energy 399,708 — — — 399,708 — 399,708 Auto and light truck 962,226 20 — — 962,246 4,666 966,912 Medium and heavy duty truck 311,915 32 — — 311,947 — 311,947 Aircraft 1,069,830 8,113 229 — 1,078,172 — 1,078,172 Construction equipment 1,078,912 2,044 3,620 — 1,084,576 176 1,084,752 Commercial real estate 1,126,806 — 85 — 1,126,891 2,970 1,129,861 Residential real estate and home equity 634,345 1,623 51 142 636,161 1,812 637,973 Consumer 141,489 864 107 7 142,467 490 142,957 Total $ 6,478,178 $ 12,705 $ 4,092 $ 149 $ 6,495,124 $ 23,381 $ 6,518,505
Schedule of amortized cost of loans and leases that were both experiencing financial difficulty and modified, segregated by portfolio segment and type of modification.	The following table shows the amortized cost of loans and leases that were both experiencing financial difficulty and modified during the three months ended March 31, 2024 and March 31, 2023, respectively, segregated by portfolio segment and type of modification. The percentage of the amortized cost of loans and leases that were modified to borrowers in financial distress as compared to the amortized cost of each segment of financial receivable is also presented below. (Dollars in thousands) Payment Term Interest Combination % of Total Three Months Ended March 31, 2024 Commercial and agricultural $ — $ 108 $ — $ — 0.01 % Auto and light truck — — — 25,583 2.56 Total $ — $ 108 $ — $ 25,583 0.39 % Three Months Ended March 31, 2023 Commercial and agricultural $ — $ 752 $ — $ — 0.09 % Construction equipment — 3,912 — — 0.39 Commercial real estate — — 511 — 0.05 Total $ — $ 4,664 $ 511 $ — 0.08 %
Schedule of amortized cost of loans and leases that were both experiencing financial difficulty and modified, with delinquency status.	The Company closely monitors the performance of loans and leases that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table shows the performance of such loans and leases that have been modified during the twelve months ended March 31, 2024 and the three months ended March 31, 2023. (Dollars in thousands) Current 30-59 60-89 90 Days or Total Twelve months ended March 31, 2024 Commercial and agricultural $ 1,798 $ — $ — $ 1,869 $ 1,869 Auto and light truck 25,583 — — — — Medium and heavy duty truck 10,699 — — — — Construction equipment 1,372 — — — — Commercial real estate 269 — — — — Total $ 39,721 $ — $ — $ 1,869 $ 1,869 Three months ended March 31, 2023 Commercial and agricultural $ 752 $ — $ — $ — $ — Construction equipment 3,912 — — — — Commercial real estate 511 — — — — Total $ 5,175 $ — $ — $ — $ —
Schedule of the financial effect of loan and lease modifications to borrowers experiencing financial difficulties.	The following table shows the financial effect of loan and lease modifications during the periods presented in the previous table to borrowers experiencing financial difficulty. Weighted- Weighted- Weighted- Combination Weighted-Average Payment Delay and Term Extension (in months) Twelve months ended March 31, 2024 Commercial and agricultural — % 9 6 35 Auto and light truck — 0 0 3 Medium and heavy duty truck — 0 0 6 Construction equipment — 4 0 0 Commercial real estate — 0 3 0 Total — % 4 6 5 Three months ended March 31, 2023 Commercial and agricultural — % 3 0 0 Construction equipment — 5 0 0 Commercial real estate 3.00 0 0 0 Total 3.00 % 4 0 0

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)	3 Months Ended
Allowance for Credit Losses (Tables)	Mar. 31, 2024
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract]
Schedule of changes in allowance for loan and lease losses, segregated by portfolio segment	The following table shows the changes in the allowance for loan and lease losses, segregated by portfolio segment, for the three months ended March 31, 2024 and 2023. (Dollars in thousands) Commercial and Renewable energy Auto and Medium Aircraft Construction Commercial Residential Consumer Total March 31, 2024 Balance, beginning of period $ 17,385 $ 6,610 $ 16,858 $ 8,965 $ 37,653 $ 26,510 $ 23,690 $ 7,698 $ 2,183 $ 147,552 Charge-offs 7,068 — 1 — 68 292 — 13 229 7,671 Recoveries 86 — 653 — 368 199 181 8 53 1,548 Net charge-offs (recoveries) 6,982 — (652) — (300) 93 (181) 5 176 6,123 Provision (recovery of provision) 6,860 248 74 (177) (1,029) 387 (27) 115 144 6,595 Balance, end of period $ 17,263 $ 6,858 $ 17,584 $ 8,788 $ 36,924 $ 26,804 $ 23,844 $ 7,808 $ 2,151 $ 148,024 March 31, 2023 Balance, beginning of period $ 14,635 $ 7,217 $ 18,634 $ 7,566 $ 41,093 $ 24,039 $ 17,431 $ 6,478 $ 2,175 $ 139,268 Charge-offs 564 — 112 — — 1 39 1 324 1,041 Recoveries 172 — 541 — 226 — 3 233 60 1,235 Net charge-offs (recoveries) 392 — (429) — (226) 1 36 (232) 264 (194) Provision (recovery of provision) 1,844 (929) (505) 263 (1,186) 1,541 1,905 (89) 205 3,049 Balance, end of period $ 16,087 $ 6,288 $ 18,558 $ 7,829 $ 40,133 $ 25,579 $ 19,300 $ 6,621 $ 2,116 $ 142,511
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. Three Months Ended (Dollars in thousands) 2024 2023 Balance, beginning of period $ 8,182 $ 5,616 Provision 882 1,035 Balance, end of period $ 9,064 $ 6,651

Lease Investments (Tables)

Lease Investments (Tables)	3 Months Ended
Lease Investments (Tables)	Mar. 31, 2024
Leases [Abstract]
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. Three Months Ended (Dollars in thousands) 2024 2023 Direct finance leases: Interest income on lease receivable $ 3,439 $ 3,121 Operating leases: Income related to lease payments $ 1,671 $ 2,503 Depreciation expense 1,288 2,022

Mortgage Servicing Rights (Tabl

Mortgage Servicing Rights (Tables)	3 Months Ended
Mortgage Servicing Rights (Tables)	Mar. 31, 2024
Transfers and Servicing of Financial Assets [Abstract]
Schedule of changes in carrying value of mortgage servicing rights and associated valuation allowance	The following table shows changes in the carrying value of MSRs and the associated valuation allowance. Three Months Ended (Dollars in thousands) 2024 2023 Mortgage servicing rights: Balance at beginning of period $ 3,670 $ 4,137 Additions 88 91 Amortization (184) (221) Carrying value before valuation allowance at end of period 3,574 4,007 Valuation allowance: Balance at beginning of period — — Impairment recoveries — — Balance at end of period $ — $ — Net carrying value of mortgage servicing rights at end of period $ 3,574 $ 4,007 Fair value of mortgage servicing rights at end of period $ 8,357 $ 8,053

Commitments and Financial Ins_2

Commitments and Financial Instruments with Off-Balance-Sheet Risk (Tables)	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of financial instruments whose contract amounts represent credit risk	The following table shows financial instruments whose contract amounts represent credit risk. (Dollars in thousands) March 31, December 31, Amounts of commitments: Loan commitments to extend credit $ 1,455,411 $ 1,454,506 Standby letters of credit $ 17,596 $ 17,287 Commercial and similar letters of credit $ 2,829 $ 7,047

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
Derivative Financial Instruments (Tables)	Mar. 31, 2024
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. 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 March 31, 2024 Interest rate swap contracts $ 1,092,725 Other assets $ 21,526 Other liabilities $ 21,936 Loan commitments 5,047 Mortgages held for sale 168 N/A — Forward contracts - mortgage loan 5,750 N/A — Mortgages held for sale 8 Total $ 1,103,522 $ 21,694 $ 21,944 December 31, 2023 Interest rate swap contracts $ 1,085,618 Other assets $ 22,704 Other liabilities $ 23,140 Loan commitments 2,824 Mortgages held for sale 107 N/A — Forward contracts - mortgage loan 3,500 N/A — Mortgages held for sale 16 Total $ 1,091,942 $ 22,811 $ 23,156
Schedule of amounts included in the consolidated statements of income for non-hedging derivative financial instruments	The following table shows the amounts included in the Consolidated Statements of Income for non-hedging derivative financial instruments. Gain (loss) Three Months Ended (Dollars in thousands) Statement of Income classification 2024 2023 Interest rate swap contracts Other expense $ 27 $ 99 Interest rate swap contracts Other income 186 195 Loan commitments Mortgage banking 61 25 Forward contracts - mortgage loan Mortgage banking 8 (40) Total $ 282 $ 279
Schedule of offsetting of financial assets and derivative assets	The following table shows the offsetting of financial assets and derivative assets. 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 Financial Instruments Cash Collateral Received Net Amount March 31, 2024 Interest rate swaps $ 21,526 $ — $ 21,526 $ — $ 16,405 $ 5,121 December 31, 2023 Interest rate swaps $ 22,704 $ — $ 22,704 $ — $ 10,795 $ 11,909
Schedule of offsetting of financial liabilities and derivative liabilities	The following table shows the offsetting of financial liabilities and derivative liabilities. 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 March 31, 2024 Interest rate swaps $ 21,936 $ — $ 21,936 $ — $ — $ 21,936 Repurchase agreements 62,591 — 62,591 62,591 — — Total $ 84,527 $ — $ 84,527 $ 62,591 $ — $ 21,936 December 31, 2023 Interest rate swaps $ 23,140 $ — $ 23,140 $ — $ — $ 23,140 Repurchase agreements 55,809 — 55,809 55,809 — — Total $ 78,949 $ — $ 78,949 $ 55,809 $ — $ 23,140

Variable Interest Entities (Tab

Variable Interest Entities (Tables)	3 Months Ended
Variable Interest Entities (Tables)	Mar. 31, 2024
Variable Interest Entities [Abstract]
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. (Dollars in thousands) March 31, 2024 December 31, 2023 Investment carrying amount $ 76,374 $ 79,228 Unfunded capital and other commitments 71,407 80,719 Maximum exposure to loss 66,560 59,649
Summary of subordinated notes	The following table shows subordinated notes at March 31, 2024. (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 7.07 % 9/15/2037 Total $ 58,764 (1) Fixed rate through life of debt. (2) 3-Month Term SOFR + the 3-Month tenor spread adjustment + 1.48% through remaining life of debt.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
Earnings Per Share (Tables)	Mar. 31, 2024
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. Three Months Ended (Dollars in thousands - except per share amounts) 2024 2023 Distributed earnings allocated to common stock $ 8,309 $ 7,892 Undistributed earnings allocated to common stock 20,870 22,977 Net earnings allocated to common stock 29,179 30,869 Net earnings allocated to participating securities 276 255 Net income allocated to common stock and participating securities $ 29,455 $ 31,124 Weighted average shares outstanding for basic earnings per common share 24,459,088 24,687,087 Dilutive effect of stock compensation — — Weighted average shares outstanding for diluted earnings per common share 24,459,088 24,687,087 Basic earnings per common share $ 1.19 $ 1.25 Diluted earnings per common share $ 1.19 $ 1.25

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
Accumulated Other Comprehensive Loss (Tables)	Mar. 31, 2024
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of reclassifications out of accumulated other comprehensive income	The following table presents reclassifications out of accumulated other comprehensive income (loss) related to unrealized gains and losses on available-for-sale securities. Three Months Ended March 31, Affected Line Item in the Consolidated Statements of Income (Dollars in thousands) 2024 2023 Realized losses included in net income $ — $ (44) Losses on investment securities available-for-sale — (44) Income before income taxes Tax effect — 10 Income tax expense Net of tax $ — $ (34) Net income

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
Fair Value Measurements (Tables)	Mar. 31, 2024
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 the 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. (Dollars in thousands) Fair value Aggregate Excess of fair value carrying amount over (under) unpaid principal March 31, 2024 Mortgages held for sale reported at fair value $ 2,881 $ 2,606 $ 275 (1) December 31, 2023 Mortgages held for sale reported at fair value $ 1,442 $ 1,297 $ 145 (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 March 31, 2024 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 545,675 $ 357,210 $ — $ 902,885 U.S. States and political subdivisions securities — 86,605 1,044 87,649 Mortgage-backed securities — Federal agencies — 585,137 — 585,137 Corporate debt securities — 6,980 — 6,980 Foreign government and other securities — 593 — 593 Total debt securities available-for-sale 545,675 1,036,525 1,044 1,583,244 Mortgages held for sale — 2,881 — 2,881 Accrued income and other assets (interest rate swap agreements) — 21,526 — 21,526 Total $ 545,675 $ 1,060,932 $ 1,044 $ 1,607,651 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 21,936 $ — $ 21,936 Total $ — $ 21,936 $ — $ 21,936 December 31, 2023 Assets: Investment securities available-for-sale: U.S. Treasury and Federal agencies securities $ 541,461 $ 381,405 $ — $ 922,866 U.S. States and political subdivisions securities — 91,403 1,161 92,564 Mortgage-backed securities — Federal agencies — 598,252 — 598,252 Corporate debt securities — 8,329 — 8,329 Foreign government and other securities — 589 — 589 Total debt securities available-for-sale 541,461 1,079,978 1,161 1,622,600 Mortgages held for sale — 1,442 — 1,442 Accrued income and other assets (interest rate swap agreements) — 22,704 — 22,704 Total $ 541,461 $ 1,104,124 $ 1,161 $ 1,646,746 Liabilities: Accrued expenses and other liabilities (interest rate swap agreements) $ — $ 23,140 $ — $ 23,140 Total $ — $ 23,140 $ — $ 23,140
Schedule of changes in investment securities available-for-sale Level 3 assets measured at fair value on a recurring basis	The following table shows changes in Level 3 assets measured at fair value on a recurring basis for the quarter ended March 31, 2024 and 2023. (Dollars in thousands) U.S. States and Beginning balance January 1, 2024 $ 1,161 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (loss) 63 Purchases — Issuances — Sales — Settlements — Maturities (180) Transfers into Level 3 — Transfers out of Level 3 — Ending balance March 31, 2024 $ 1,044 Beginning balance January 1, 2023 $ 1,464 Total gains or losses (realized/unrealized): Included in earnings — Included in other comprehensive income (loss) 32 Purchases 3,000 Issuances — Sales — Settlements — Maturities (175) Transfers into Level 3 — Transfers out of Level 3 — Ending balance March 31, 2023 $ 4,321
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 March 31, 2024 Collateral-dependent impaired loans $ — $ — $ — $ — Accrued income and other assets (mortgage servicing rights) — — 3,574 3,574 Accrued income and other assets (repossessions) — — 308 308 Accrued income and other assets (other real estate) — — — — Total $ — $ — $ 3,882 $ 3,882 December 31, 2023 Collateral-dependent impaired loans $ — $ — $ 6,289 $ 6,289 Accrued income and other assets (mortgage servicing rights) — — 3,670 3,670 Accrued income and other assets (repossessions) — — 705 705 Accrued income and other assets (other real estate) — — — — Total $ — $ — $ 10,664 $ 10,664
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 March 31, 2024 Assets: Cash and due from banks $ 41,533 $ 41,533 $ 41,533 $ — $ — Federal funds sold and interest bearing deposits with other banks 39,381 39,381 39,381 — — Investment securities, available-for-sale 1,583,244 1,583,244 545,675 1,036,525 1,044 Other investments 25,075 25,075 25,075 — — Mortgages held for sale 2,881 2,881 — 2,881 — Loans and leases, net of allowance for loan and lease losses 6,414,748 6,224,374 — — 6,224,374 Mortgage servicing rights 3,574 8,357 — — 8,357 Accrued interest receivable 30,685 30,685 — 30,685 — Interest rate swaps 21,526 21,526 — 21,526 — Liabilities: Deposits $ 7,055,311 $ 7,048,994 $ 5,253,650 $ 1,795,344 $ — Short-term borrowings 249,580 249,580 83,534 166,046 — Long-term debt and mandatorily redeemable securities 39,406 38,709 — 38,709 — Subordinated notes 58,764 55,494 — 55,494 — Accrued interest payable 32,216 32,216 — 32,216 — Interest rate swaps 21,936 21,936 — 21,936 — Off-balance-sheet instruments * — 118 — 118 — December 31, 2023 Assets: Cash and due from banks $ 77,474 $ 77,474 $ 77,474 $ — $ — Federal funds sold and interest bearing deposits with other banks 52,194 52,194 52,194 — — Investment securities, available-for-sale 1,622,600 1,622,600 541,461 1,079,978 1,161 Other investments 25,075 25,075 25,075 — — Mortgages held for sale 1,442 1,442 — 1,442 — Loans and leases, net of allowance for loan and lease losses 6,370,953 6,204,791 — — 6,204,791 Mortgage servicing rights 3,670 8,151 — — 8,151 Accrued interest receivable 30,232 30,232 — 30,232 — Interest rate swaps 22,704 22,704 — 22,704 — Liabilities: Deposits $ 7,038,581 $ 7,033,549 $ 5,299,896 $ 1,733,653 $ — Short-term borrowings 312,359 312,359 56,013 256,346 — Long-term debt and mandatorily redeemable securities 47,911 47,098 — 47,098 — Subordinated notes 58,764 55,842 — 55,842 — Accrued interest payable 29,520 29,520 — 29,520 — Interest rate swaps 23,140 23,140 — 23,140 — Off-balance-sheet instruments * — 120 — 120 — * 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 measured at fair value on a recurring basis. (Dollars in thousands) Fair Value Valuation Methodology Unobservable Inputs Range of Inputs Weighted Average March 31, 2024 Debt securities available-for sale Direct placement municipal securities $ 1,044 Discounted cash flows Credit spread assumption 3.75% - 4.48% 3.93 % December 31, 2023 Debt securities available-for sale Direct placement municipal securities $ 1,161 Discounted cash flows Credit spread assumption 0.31% - 5.28% 4.28 %
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 below 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 March 31, 2024 Collateral-dependent impaired loans $ — $ — Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 0% - 0% 0.0 % Mortgage servicing rights 3,574 8,357 Discounted cash flows Constant prepayment rate (CPR) 5.8% - 17.2% 6.5 % Discount rate 12.9% - 13.2% 11.3 % Repossessions 308 331 Appraisals, trade publications and auction values Discount for lack of marketability 0% - 2% 0 % Other real estate — — Appraisals Discount for lack of marketability 0% - 0% 0 % December 31, 2023 Collateral-dependent impaired loans $ 6,289 $ 6,289 Collateral based measurements including appraisals, trade publications, and auction values Discount for lack of marketability and current conditions 10% - 20% 13.9 % Mortgage servicing rights 3,670 8,151 Discounted cash flows Constant prepayment rate (CPR) 6.1% - 17.6% 7.3 % Discount rate 11.0% - 13.1% 11.2 % Repossessions 705 757 Appraisals, trade publications and auction values Discount for lack of marketability 0% - 10% 8 % Other real estate — — Appraisals Discount for lack of marketability 0% - 0% 0 %

Accounting Policies (Details)

Accounting Policies (Details)	3 Months Ended
Accounting Policies (Details)	Mar. 31, 2024
Minimum
Summary of Significant Accounting Policies [Line Items]
Period of sustained performance required to change from non-performing to performing status	6 months

Investment Securities (Details)

Investment Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Due in one year or less	$ 298,957
Due after one year through five years	727,883
Due after five years through ten years	13,151
Due after ten years	18,828
Mortgage-backed securities	667,973
Total debt securities available-for-sale	1,726,792	$ 1,762,357
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Due in one year or less	292,127
Due after one year through five years	674,372
Due after five years through ten years	12,729
Due after ten years	18,879
Mortgage-backed securities	585,137
Total debt securities available-for-sale	1,583,244	1,622,600
Accrued interest receivable on investment securities available-for-sale	4,500	4,600
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	958,300	979,530
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	902,885	922,866
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	92,875	97,522
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	87,649	92,564
Mortgage-backed securities - Federal agencies
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Total debt securities available-for-sale	667,973	676,257
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	585,137	598,252
Corporate debt securities
Contractual maturities of investments in debt securities available-for-sale, Amortized Cost
Total debt securities available-for-sale	7,044	8,448
Contractual maturities of investments in debt securities available-for-sale, Fair Value
Total debt securities available-for-sale	6,980	8,329
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	$ 593	$ 589

Investment Securities (Details

Investment Securities (Details 2) $ in Thousands	3 Months Ended
Investment Securities (Details 2) $ in Thousands	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	$ 1,726,792		$ 1,762,357
Gross Unrealized Gains	300		1,162
Gross Unrealized Losses	(143,848)		(140,919)
Investment securities available-for-sale	1,583,244		1,622,600
Fair Value
Less than 12 Months	33,906		9,804
12 months or Longer	1,493,627		1,542,830
Total fair value	1,527,533		1,552,634
Unrealized Losses
Less than 12 Months	(271)		(100)
12 months or Longer	(143,577)		(140,819)
Total unrealized losses	(143,848)		(140,919)
Gross realized gains and losses
Gross realized gains	0	$ 1,286
Gross realized losses	0	(1,330)
Net realized (losses) gains	0	$ (44)
Investment securities pledged as collateral	$ 375,730		411,380
Number of available-for-sale debt securities	661
Number of available-for-sale debt securities in an unrealized loss position	606
U.S. Treasury and Federal agencies securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	$ 958,300		979,530
Gross Unrealized Gains	13		178
Gross Unrealized Losses	(55,428)		(56,842)
Investment securities available-for-sale	902,885		922,866
Fair Value
Less than 12 Months	8,812		0
12 months or Longer	883,797		913,417
Total fair value	892,609		913,417
Unrealized Losses
Less than 12 Months	(84)		0
12 months or Longer	(55,344)		(56,842)
Total unrealized losses	(55,428)		(56,842)
U.S. States and political subdivisions securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	92,875		97,522
Gross Unrealized Gains	223		508
Gross Unrealized Losses	(5,449)		(5,466)
Investment securities available-for-sale	87,649		92,564
Fair Value
Less than 12 Months	5,194		1,251
12 months or Longer	64,560		69,747
Total fair value	69,754		70,998
Unrealized Losses
Less than 12 Months	(114)		(2)
12 months or Longer	(5,335)		(5,464)
Total unrealized losses	(5,449)		(5,466)
Mortgage-backed securities - Federal agencies
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	667,973		676,257
Gross Unrealized Gains	64		476
Gross Unrealized Losses	(82,900)		(78,481)
Investment securities available-for-sale	585,137		598,252
Fair Value
Less than 12 Months	19,900		8,553
12 months or Longer	537,697		550,748
Total fair value	557,597		559,301
Unrealized Losses
Less than 12 Months	(73)		(98)
12 months or Longer	(82,827)		(78,383)
Total unrealized losses	(82,900)		(78,481)
Corporate debt securities
Schedule Of Available For Sale Debt Securities [Line Items]
Total debt securities available-for-sale	7,044		8,448
Gross Unrealized Gains	0		0
Gross Unrealized Losses	(64)		(119)
Investment securities available-for-sale	6,980		8,329
Fair Value
Less than 12 Months	0		0
12 months or Longer	6,980		8,329
Total fair value	6,980		8,329
Unrealized Losses
Less than 12 Months	0		0
12 months or Longer	(64)		(119)
Total unrealized losses	(64)		(119)
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	(7)		(11)
Investment securities available-for-sale	593		589
Fair Value
Less than 12 Months	0		0
12 months or Longer	593		589
Total fair value	593		589
Unrealized Losses
Less than 12 Months	0		0
12 months or Longer	(7)		(11)
Total unrealized losses	$ (7)		$ (11)

Loan and Lease Financings (Deta

Loan and Lease Financings (Details)	3 Months Ended	12 Months Ended
Loan and Lease Financings (Details)	Mar. 31, 2024 USD ($) item class	Dec. 31, 2023 USD ($)
Receivables [Abstract]
Number of methods to assess credit risk \| item	2
Loan and Lease Financings
Number of methods to assess credit risk \| item	2
Number of domestic aircraft loan pools \| class	2
Amortized cost of loans and leases	$ 6,562,772,000	$ 6,518,505,000
Commercial and agricultural
Loan and Lease Financings
Financing receivable originated during current fiscal year	30,755,000	163,158,000
Financing receivable originated one year prior to current fiscal year	141,722,000	127,374,000
Financing receivable originated two years prior to current fiscal year	112,318,000	73,359,000
Financing receivable originated three years prior to current fiscal year	67,360,000	40,209,000
Financing receivable originated four years prior to current fiscal year	36,720,000	18,951,000
Financing receivable originated five years or more prior to current fiscal year	30,928,000	16,274,000
Revolving Loans	311,724,000	326,898,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	731,527,000	766,223,000
Current period gross charge-offs, financing receivable originated during current fiscal year	0	668,000
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	132,000	499,000
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	43,000	15,000
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	543,000	17,000
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	0	4,000
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	0	0
Current period gross charge-offs, revolving financing receivable	6,350,000	3,102,000
Current period gross charge-offs, revolving financing receivable converted to term loan	0	0
Current period gross charge-offs	$ 7,068,000	4,305,000
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
Renewable energy
Loan and Lease Financings
Financing receivable originated during current fiscal year	$ 6,608,000	177,364,000
Financing receivable originated one year prior to current fiscal year	193,477,000	23,679,000
Financing receivable originated two years prior to current fiscal year	23,558,000	86,836,000
Financing receivable originated three years prior to current fiscal year	80,269,000	29,138,000
Financing receivable originated four years prior to current fiscal year	27,553,000	56,935,000
Financing receivable originated five years or more prior to current fiscal year	82,197,000	25,756,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	413,662,000	399,708,000
Current period gross charge-offs, financing receivable originated during current fiscal year	0	0
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	0	0
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	0	0
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	0	0
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	0	0
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	0	0
Current period gross charge-offs, revolving financing receivable	0	0
Current period gross charge-offs, revolving financing receivable converted to term loan	0	0
Current period gross charge-offs	0	0
Auto and light truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	168,937,000	604,314,000
Financing receivable originated one year prior to current fiscal year	531,667,000	250,549,000
Financing receivable originated two years prior to current fiscal year	206,582,000	64,656,000
Financing receivable originated three years prior to current fiscal year	52,275,000	27,476,000
Financing receivable originated four years prior to current fiscal year	22,301,000	14,205,000
Financing receivable originated five years or more prior to current fiscal year	15,703,000	5,712,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	997,465,000	966,912,000
Current period gross charge-offs, financing receivable originated during current fiscal year	0	126,000
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	0	360,000
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	0	128,000
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	0	33,000
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	0	19,000
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	1,000	63,000
Current period gross charge-offs, revolving financing receivable	0	0
Current period gross charge-offs, revolving financing receivable converted to term loan	0	0
Current period gross charge-offs	$ 1,000	729,000
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	$ 18,478,000	99,819,000
Financing receivable originated one year prior to current fiscal year	94,372,000	121,500,000
Financing receivable originated two years prior to current fiscal year	113,438,000	45,744,000
Financing receivable originated three years prior to current fiscal year	41,460,000	24,645,000
Financing receivable originated four years prior to current fiscal year	21,221,000	16,037,000
Financing receivable originated five years or more prior to current fiscal year	14,830,000	4,202,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	303,799,000	311,947,000
Current period gross charge-offs, financing receivable originated during current fiscal year	0	0
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	0	0
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	0	0
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	0	0
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	0	0
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	0	0
Current period gross charge-offs, revolving financing receivable	0	0
Current period gross charge-offs, revolving financing receivable converted to term loan	0	0
Current period gross charge-offs	$ 0	0
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	$ 90,279,000	279,755,000
Financing receivable originated one year prior to current fiscal year	271,745,000	364,650,000
Financing receivable originated two years prior to current fiscal year	345,937,000	201,283,000
Financing receivable originated three years prior to current fiscal year	191,425,000	145,287,000
Financing receivable originated four years prior to current fiscal year	134,637,000	37,244,000
Financing receivable originated five years or more prior to current fiscal year	62,760,000	43,533,000
Revolving Loans	7,275,000	6,420,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	1,104,058,000	1,078,172,000
Current period gross charge-offs, financing receivable originated during current fiscal year	0	0
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	0	0
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	0	0
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	15,000	0
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	0	0
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	53,000	0
Current period gross charge-offs, revolving financing receivable	0	0
Current period gross charge-offs, revolving financing receivable converted to term loan	0	0
Current period gross charge-offs	$ 68,000	0
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	$ 96,873,000	466,799,000
Financing receivable originated one year prior to current fiscal year	437,244,000	353,834,000
Financing receivable originated two years prior to current fiscal year	324,874,000	132,875,000
Financing receivable originated three years prior to current fiscal year	117,515,000	65,508,000
Financing receivable originated four years prior to current fiscal year	57,432,000	29,543,000
Financing receivable originated five years or more prior to current fiscal year	29,149,000	7,803,000
Revolving Loans	27,423,000	26,044,000
Revolving Loans Converted to Term	2,075,000	2,346,000
Amortized cost of loans and leases	1,092,585,000	1,084,752,000
Current period gross charge-offs, financing receivable originated during current fiscal year	0	0
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	0	44,000
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	292,000	10,000
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	0	0
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	0	0
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	0	0
Current period gross charge-offs, revolving financing receivable	0	0
Current period gross charge-offs, revolving financing receivable converted to term loan	0	0
Current period gross charge-offs	292,000	54,000
Commercial real estate
Loan and Lease Financings
Financing receivable originated during current fiscal year	60,858,000	336,965,000
Financing receivable originated one year prior to current fiscal year	324,980,000	256,368,000
Financing receivable originated two years prior to current fiscal year	248,642,000	151,173,000
Financing receivable originated three years prior to current fiscal year	146,930,000	105,933,000
Financing receivable originated four years prior to current fiscal year	98,800,000	90,824,000
Financing receivable originated five years or more prior to current fiscal year	255,110,000	188,323,000
Revolving Loans	275,000	275,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	1,135,595,000	1,129,861,000
Current period gross charge-offs, financing receivable originated during current fiscal year	0	0
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	0	39,000
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	0	30,000
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	0	0
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	0	179,000
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	0	0
Current period gross charge-offs, revolving financing receivable	0	0
Current period gross charge-offs, revolving financing receivable converted to term loan	0	0
Current period gross charge-offs	0	248,000
Residential real estate and home equity
Loan and Lease Financings
Financing receivable originated during current fiscal year	20,351,000	87,767,000
Financing receivable originated one year prior to current fiscal year	81,892,000	110,165,000
Financing receivable originated two years prior to current fiscal year	110,182,000	89,532,000
Financing receivable originated three years prior to current fiscal year	87,815,000	88,232,000
Financing receivable originated four years prior to current fiscal year	85,434,000	31,095,000
Financing receivable originated five years or more prior to current fiscal year	99,193,000	72,967,000
Revolving Loans	154,187,000	152,573,000
Revolving Loans Converted to Term	4,802,000	5,642,000
Amortized cost of loans and leases	643,856,000	637,973,000
Current period gross charge-offs, financing receivable originated during current fiscal year	0	0
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	3,000	0
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	0	0
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	0	0
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	0	0
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	0	54,000
Current period gross charge-offs, revolving financing receivable	10,000	39,000
Current period gross charge-offs, revolving financing receivable converted to term loan	0	8,000
Current period gross charge-offs	13,000	101,000
Consumer
Loan and Lease Financings
Financing receivable originated during current fiscal year	12,682,000	53,086,000
Financing receivable originated one year prior to current fiscal year	48,038,000	48,035,000
Financing receivable originated two years prior to current fiscal year	42,688,000	19,862,000
Financing receivable originated three years prior to current fiscal year	17,092,000	6,317,000
Financing receivable originated four years prior to current fiscal year	5,061,000	2,567,000
Financing receivable originated five years or more prior to current fiscal year	2,619,000	1,027,000
Revolving Loans	12,045,000	12,063,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	140,225,000	142,957,000
Current period gross charge-offs, financing receivable originated during current fiscal year	113,000	541,000
Current period gross charge-offs, financing receivable originated one year prior to current fiscal year	29,000	455,000
Current period gross charge-offs, financing receivable originated two years prior to current fiscal year	58,000	138,000
Current period gross charge-offs, financing receivable originated three years prior to current fiscal year	25,000	28,000
Current period gross charge-offs, financing receivable originated four years prior to current fiscal year	1,000	17,000
Current period gross charge-offs, financing receivable originated five years prior to current fiscal year	0	3,000
Current period gross charge-offs, revolving financing receivable	3,000	29,000
Current period gross charge-offs, revolving financing receivable converted to term loan	0	0
Current period gross charge-offs	229,000	1,211,000
Credit Quality Grades 1-6 \| Commercial and agricultural
Loan and Lease Financings
Financing receivable originated during current fiscal year	29,804,000	155,656,000
Financing receivable originated one year prior to current fiscal year	134,685,000	124,717,000
Financing receivable originated two years prior to current fiscal year	103,941,000	68,473,000
Financing receivable originated three years prior to current fiscal year	63,360,000	39,708,000
Financing receivable originated four years prior to current fiscal year	36,297,000	18,658,000
Financing receivable originated five years or more prior to current fiscal year	30,654,000	15,856,000
Revolving Loans	293,531,000	299,495,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	692,272,000	722,563,000
Credit Quality Grades 1-6 \| Renewable energy
Loan and Lease Financings
Financing receivable originated during current fiscal year	6,608,000	177,364,000
Financing receivable originated one year prior to current fiscal year	193,477,000	23,679,000
Financing receivable originated two years prior to current fiscal year	23,558,000	86,836,000
Financing receivable originated three years prior to current fiscal year	80,269,000	29,138,000
Financing receivable originated four years prior to current fiscal year	27,553,000	56,935,000
Financing receivable originated five years or more prior to current fiscal year	82,197,000	25,756,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	413,662,000	399,708,000
Credit Quality Grades 1-6 \| Auto and light truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	168,080,000	603,406,000
Financing receivable originated one year prior to current fiscal year	494,575,000	248,701,000
Financing receivable originated two years prior to current fiscal year	202,078,000	64,182,000
Financing receivable originated three years prior to current fiscal year	51,822,000	24,986,000
Financing receivable originated four years prior to current fiscal year	20,256,000	13,573,000
Financing receivable originated five years or more prior to current fiscal year	14,804,000	5,287,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	951,615,000	960,135,000
Credit Quality Grades 1-6 \| Medium and heavy duty truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	18,478,000	96,254,000
Financing receivable originated one year prior to current fiscal year	91,212,000	114,490,000
Financing receivable originated two years prior to current fiscal year	105,988,000	44,069,000
Financing receivable originated three years prior to current fiscal year	39,785,000	24,645,000
Financing receivable originated four years prior to current fiscal year	21,221,000	15,264,000
Financing receivable originated five years or more prior to current fiscal year	14,407,000	4,202,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	291,091,000	298,924,000
Credit Quality Grades 1-6 \| Aircraft
Loan and Lease Financings
Financing receivable originated during current fiscal year	90,279,000	269,635,000
Financing receivable originated one year prior to current fiscal year	261,627,000	355,175,000
Financing receivable originated two years prior to current fiscal year	333,332,000	197,579,000
Financing receivable originated three years prior to current fiscal year	187,762,000	140,744,000
Financing receivable originated four years prior to current fiscal year	130,375,000	37,244,000
Financing receivable originated five years or more prior to current fiscal year	56,277,000	36,936,000
Revolving Loans	7,275,000	6,420,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	1,066,927,000	1,043,733,000
Credit Quality Grades 1-6 \| Construction equipment
Loan and Lease Financings
Financing receivable originated during current fiscal year	96,604,000	459,884,000
Financing receivable originated one year prior to current fiscal year	430,306,000	333,008,000
Financing receivable originated two years prior to current fiscal year	305,122,000	131,838,000
Financing receivable originated three years prior to current fiscal year	116,595,000	64,998,000
Financing receivable originated four years prior to current fiscal year	56,930,000	29,543,000
Financing receivable originated five years or more prior to current fiscal year	29,149,000	7,803,000
Revolving Loans	27,423,000	26,044,000
Revolving Loans Converted to Term	2,075,000	2,346,000
Amortized cost of loans and leases	1,064,204,000	1,055,464,000
Credit Quality Grades 1-6 \| Commercial real estate
Loan and Lease Financings
Financing receivable originated during current fiscal year	60,793,000	336,287,000
Financing receivable originated one year prior to current fiscal year	324,452,000	251,055,000
Financing receivable originated two years prior to current fiscal year	243,652,000	148,597,000
Financing receivable originated three years prior to current fiscal year	143,542,000	105,282,000
Financing receivable originated four years prior to current fiscal year	98,147,000	86,452,000
Financing receivable originated five years or more prior to current fiscal year	251,758,000	187,306,000
Revolving Loans	275,000	275,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	1,122,619,000	1,115,254,000
Credit Quality Grades 7-12
Loan and Lease Financings
Relationships reviewed quarterly as part of management's evaluation of the appropriateness of the allowance for loan and lease losses	250,000
Credit Quality Grades 7-12 \| Commercial and agricultural
Loan and Lease Financings
Financing receivable originated during current fiscal year	951,000	7,502,000
Financing receivable originated one year prior to current fiscal year	7,037,000	2,657,000
Financing receivable originated two years prior to current fiscal year	8,377,000	4,886,000
Financing receivable originated three years prior to current fiscal year	4,000,000	501,000
Financing receivable originated four years prior to current fiscal year	423,000	293,000
Financing receivable originated five years or more prior to current fiscal year	274,000	418,000
Revolving Loans	18,193,000	27,403,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	39,255,000	43,660,000
Credit Quality Grades 7-12 \| Renewable energy
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	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	0	0
Credit Quality Grades 7-12 \| Auto and light truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	857,000	908,000
Financing receivable originated one year prior to current fiscal year	37,092,000	1,848,000
Financing receivable originated two years prior to current fiscal year	4,504,000	474,000
Financing receivable originated three years prior to current fiscal year	453,000	2,490,000
Financing receivable originated four years prior to current fiscal year	2,045,000	632,000
Financing receivable originated five years or more prior to current fiscal year	899,000	425,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	45,850,000	6,777,000
Credit Quality Grades 7-12 \| Medium and heavy duty truck
Loan and Lease Financings
Financing receivable originated during current fiscal year	0	3,565,000
Financing receivable originated one year prior to current fiscal year	3,160,000	7,010,000
Financing receivable originated two years prior to current fiscal year	7,450,000	1,675,000
Financing receivable originated three years prior to current fiscal year	1,675,000	0
Financing receivable originated four years prior to current fiscal year	0	773,000
Financing receivable originated five years or more prior to current fiscal year	423,000	0
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	12,708,000	13,023,000
Credit Quality Grades 7-12 \| Aircraft
Loan and Lease Financings
Financing receivable originated during current fiscal year	0	10,120,000
Financing receivable originated one year prior to current fiscal year	10,118,000	9,475,000
Financing receivable originated two years prior to current fiscal year	12,605,000	3,704,000
Financing receivable originated three years prior to current fiscal year	3,663,000	4,543,000
Financing receivable originated four years prior to current fiscal year	4,262,000	0
Financing receivable originated five years or more prior to current fiscal year	6,483,000	6,597,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	37,131,000	34,439,000
Credit Quality Grades 7-12 \| Construction equipment
Loan and Lease Financings
Financing receivable originated during current fiscal year	269,000	6,915,000
Financing receivable originated one year prior to current fiscal year	6,938,000	20,826,000
Financing receivable originated two years prior to current fiscal year	19,752,000	1,037,000
Financing receivable originated three years prior to current fiscal year	920,000	510,000
Financing receivable originated four years prior to current fiscal year	502,000	0
Financing receivable originated five years or more prior to current fiscal year	0	0
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	28,381,000	29,288,000
Credit Quality Grades 7-12 \| Commercial real estate
Loan and Lease Financings
Financing receivable originated during current fiscal year	65,000	678,000
Financing receivable originated one year prior to current fiscal year	528,000	5,313,000
Financing receivable originated two years prior to current fiscal year	4,990,000	2,576,000
Financing receivable originated three years prior to current fiscal year	3,388,000	651,000
Financing receivable originated four years prior to current fiscal year	653,000	4,372,000
Financing receivable originated five years or more prior to current fiscal year	3,352,000	1,017,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	12,976,000	14,607,000
Performing \| Residential real estate and home equity
Loan and Lease Financings
Financing receivable originated during current fiscal year	20,351,000	87,767,000
Financing receivable originated one year prior to current fiscal year	81,747,000	110,058,000
Financing receivable originated two years prior to current fiscal year	110,182,000	89,458,000
Financing receivable originated three years prior to current fiscal year	87,815,000	88,232,000
Financing receivable originated four years prior to current fiscal year	85,434,000	30,681,000
Financing receivable originated five years or more prior to current fiscal year	98,432,000	72,211,000
Revolving Loans	153,634,000	152,037,000
Revolving Loans Converted to Term	4,683,000	5,575,000
Amortized cost of loans and leases	642,278,000	636,019,000
Performing \| Consumer
Loan and Lease Financings
Financing receivable originated during current fiscal year	12,668,000	53,023,000
Financing receivable originated one year prior to current fiscal year	47,816,000	47,789,000
Financing receivable originated two years prior to current fiscal year	42,447,000	19,739,000
Financing receivable originated three years prior to current fiscal year	16,962,000	6,286,000
Financing receivable originated four years prior to current fiscal year	5,037,000	2,539,000
Financing receivable originated five years or more prior to current fiscal year	2,589,000	1,021,000
Revolving Loans	12,045,000	12,063,000
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	$ 139,564,000	142,460,000
Nonperforming
Loan and Lease Financings
Classification of nonperforming loans, threshold period past due	90 days
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	145,000	107,000
Financing receivable originated two years prior to current fiscal year	0	74,000
Financing receivable originated three years prior to current fiscal year	0	0
Financing receivable originated four years prior to current fiscal year	0	414,000
Financing receivable originated five years or more prior to current fiscal year	761,000	756,000
Revolving Loans	553,000	536,000
Revolving Loans Converted to Term	119,000	67,000
Amortized cost of loans and leases	1,578,000	1,954,000
Nonperforming \| Consumer
Loan and Lease Financings
Financing receivable originated during current fiscal year	14,000	63,000
Financing receivable originated one year prior to current fiscal year	222,000	246,000
Financing receivable originated two years prior to current fiscal year	241,000	123,000
Financing receivable originated three years prior to current fiscal year	130,000	31,000
Financing receivable originated four years prior to current fiscal year	24,000	28,000
Financing receivable originated five years or more prior to current fiscal year	30,000	6,000
Revolving Loans	0	0
Revolving Loans Converted to Term	0	0
Amortized cost of loans and leases	$ 661,000	$ 497,000

Loan and Lease Financings (De_2

Loan and Lease Financings (Details 2) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
90 Days or More Past Due and Accruing	$ 26	$ 149
Total Accruing Loans	6,540,675	6,495,124
Nonaccrual	22,097	23,381
Total loans and leases	6,562,772	6,518,505
Accrued interest receivable on loans and leases	26,010	25,350
Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	6,535,682	6,478,178
30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	4,646	12,705
60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	321	4,092
Commercial and agricultural
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	725,529	752,956
Nonaccrual	5,998	13,267
Total loans and leases	731,527	766,223
Commercial and agricultural \| Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	725,177	752,947
Commercial and agricultural \| 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	237	9
Commercial and agricultural \| 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	115	0
Renewable energy
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	413,662	399,708
Nonaccrual	0	0
Total loans and leases	413,662	399,708
Renewable energy \| Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	413,662	399,708
Renewable energy \| 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	0	0
Renewable energy \| 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	0	0
Auto and light truck
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	993,582	962,246
Nonaccrual	3,883	4,666
Total loans and leases	997,465	966,912
Auto and light truck \| Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	993,324	962,226
Auto and light truck \| 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	258	20
Auto and light truck \| 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	0	0
Medium and heavy duty truck
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	303,799	311,947
Nonaccrual	0	0
Total loans and leases	303,799	311,947
Medium and heavy duty truck \| Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	303,799	311,915
Medium and heavy duty truck \| 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	0	32
Medium and heavy duty truck \| 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	0	0
Aircraft
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	1,096,004	1,078,172
Nonaccrual	8,054	0
Total loans and leases	1,104,058	1,078,172
Aircraft \| Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	1,095,832	1,069,830
Aircraft \| 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	168	8,113
Aircraft \| 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	4	229
Construction equipment
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	1,091,850	1,084,576
Nonaccrual	735	176
Total loans and leases	1,092,585	1,084,752
Construction equipment \| Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	1,090,144	1,078,912
Construction equipment \| 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	1,706	2,044
Construction equipment \| 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	0	3,620
Commercial real estate
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total Accruing Loans	1,134,381	1,126,891
Nonaccrual	1,214	2,970
Total loans and leases	1,135,595	1,129,861
Commercial real estate \| Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	1,134,381	1,126,806
Commercial real estate \| 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	0	0
Commercial real estate \| 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	0	85
Residential real estate and home equity
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
90 Days or More Past Due and Accruing	25	142
Total Accruing Loans	642,303	636,161
Nonaccrual	1,553	1,812
Total loans and leases	643,856	637,973
Residential real estate and home equity \| Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	640,581	634,345
Residential real estate and home equity \| 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	1,533	1,623
Residential real estate and home equity \| 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	164	51
Consumer
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
90 Days or More Past Due and Accruing	1	7
Total Accruing Loans	139,565	142,467
Nonaccrual	660	490
Total loans and leases	140,225	142,957
Consumer \| Current
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	138,782	141,489
Consumer \| 30 to 59 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	744	864
Consumer \| 60 to 89 Days Past Due
Amortized cost of loans and leases, segregated by portfolio segment, with delinquency aging and nonaccrual status
Total loans and leases	$ 38	$ 107

Loan and Lease Financings (De_3

Loan and Lease Financings (Details 3) $ in Thousands	3 Months Ended		12 Months Ended
Loan and Lease Financings (Details 3) $ in Thousands	Mar. 31, 2024 USD ($) item	Mar. 31, 2023 USD ($) item	Mar. 31, 2024 USD ($)
Loan modifications to borrowers experiencing financial difficulties
Percent of Total Segment of Financing Receivable	0.39%	0.08%
Commitments to lend additional amounts	$ 2,630	$ 0	$ 2,630
Weighted Average Interest Rate Reduction		3%	0%
Weighted Average Term Extension Modification (in months)		4 months	4 months
Weighted Average Payment Delay (in months)		0 months	6 months
Combination Weighted Average Payment Delay and Term Extension (in months)		0 months	5 months
Loan modifications to borrowers experiencing financial difficulties subsequent default \| item	0	0
Combination Payment Delay and Term Extension
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	$ 25,583	$ 0
Payment Delay
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	0	0
Term Extension
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	108	4,664
Interest Rate Reduction
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	$ 0	511
Current
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		5,175	$ 39,721
30 to 59 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		0	0
60 to 89 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		0	0
90 Days or More Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		0	1,869
Total Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		$ 0	$ 1,869
Commercial and agricultural
Loan modifications to borrowers experiencing financial difficulties
Percent of Total Segment of Financing Receivable	0.01%	0.09%
Weighted Average Interest Rate Reduction		0%	0%
Weighted Average Term Extension Modification (in months)		3 months	9 months
Weighted Average Payment Delay (in months)		0 months	6 months
Combination Weighted Average Payment Delay and Term Extension (in months)		0 months	35 months
Commercial and agricultural \| Combination Payment Delay and Term Extension
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	$ 0	$ 0
Commercial and agricultural \| Payment Delay
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	0	0
Commercial and agricultural \| Term Extension
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	108	752
Commercial and agricultural \| Interest Rate Reduction
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	$ 0	0
Commercial and agricultural \| Current
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		752	$ 1,798
Commercial and agricultural \| 30 to 59 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		0	0
Commercial and agricultural \| 60 to 89 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		0	0
Commercial and agricultural \| 90 Days or More Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		0	1,869
Commercial and agricultural \| Total Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		$ 0	$ 1,869
Construction equipment
Loan modifications to borrowers experiencing financial difficulties
Percent of Total Segment of Financing Receivable		0.39%
Weighted Average Interest Rate Reduction		0%	0%
Weighted Average Term Extension Modification (in months)		5 months	4 months
Weighted Average Payment Delay (in months)		0 months	0 months
Combination Weighted Average Payment Delay and Term Extension (in months)		0 months	0 months
Construction equipment \| Combination Payment Delay and Term Extension
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		$ 0
Construction equipment \| Payment Delay
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		0
Construction equipment \| Term Extension
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		3,912
Construction equipment \| Interest Rate Reduction
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		0
Construction equipment \| Current
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		3,912	$ 1,372
Construction equipment \| 30 to 59 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		0	0
Construction equipment \| 60 to 89 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		0	0
Construction equipment \| 90 Days or More Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		0	0
Construction equipment \| Total Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		$ 0	$ 0
Commercial real estate
Loan modifications to borrowers experiencing financial difficulties
Percent of Total Segment of Financing Receivable		0.05%
Weighted Average Interest Rate Reduction		3%	0%
Weighted Average Term Extension Modification (in months)		0 months	0 months
Weighted Average Payment Delay (in months)		0 months	3 months
Combination Weighted Average Payment Delay and Term Extension (in months)		0 months	0 months
Commercial real estate \| Combination Payment Delay and Term Extension
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		$ 0
Commercial real estate \| Payment Delay
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		0
Commercial real estate \| Term Extension
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		0
Commercial real estate \| Interest Rate Reduction
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		511
Commercial real estate \| Current
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		511	$ 269
Commercial real estate \| 30 to 59 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		0	0
Commercial real estate \| 60 to 89 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		0	0
Commercial real estate \| 90 Days or More Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		0	0
Commercial real estate \| Total Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties		$ 0	$ 0
Auto and light truck
Loan modifications to borrowers experiencing financial difficulties
Percent of Total Segment of Financing Receivable	2.56%
Weighted Average Interest Rate Reduction			0%
Weighted Average Term Extension Modification (in months)			0 months
Weighted Average Payment Delay (in months)			0 months
Combination Weighted Average Payment Delay and Term Extension (in months)			3 months
Auto and light truck \| Combination Payment Delay and Term Extension
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties	$ 25,583
Auto and light truck \| Payment Delay
Loan modifications to borrowers experiencing financial difficulties
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	0
Auto and light truck \| Term Extension
Loan modifications to borrowers experiencing financial difficulties
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	0
Auto and light truck \| Interest Rate Reduction
Loan modifications to borrowers experiencing financial difficulties
Financing Receivable, Troubled Debt Restructuring, Subsequent Default	$ 0
Auto and light truck \| Current
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			$ 25,583
Auto and light truck \| 30 to 59 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			0
Auto and light truck \| 60 to 89 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			0
Auto and light truck \| 90 Days or More Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			0
Auto and light truck \| Total Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			$ 0
Medium and heavy duty truck
Loan modifications to borrowers experiencing financial difficulties
Weighted Average Interest Rate Reduction			0%
Weighted Average Term Extension Modification (in months)			0 months
Weighted Average Payment Delay (in months)			0 months
Combination Weighted Average Payment Delay and Term Extension (in months)			6 months
Medium and heavy duty truck \| Current
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			$ 10,699
Medium and heavy duty truck \| 30 to 59 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			0
Medium and heavy duty truck \| 60 to 89 Days Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			0
Medium and heavy duty truck \| 90 Days or More Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			0
Medium and heavy duty truck \| Total Past Due
Loan modifications to borrowers experiencing financial difficulties
Loan modifications to borrowers experiencing financial difficulties			$ 0

Allowance for Credit Losses (De

Allowance for Credit Losses (Details) $ in Thousands	3 Months Ended
Allowance for Credit Losses (Details) $ in Thousands	Mar. 31, 2024 USD ($) item	Mar. 31, 2023 USD ($)
Allowance for credit losses
Number of classes existing in loan and lease portfolio \| item	9
Changes in allowance for loan and lease losses
Balance at the beginning of the period	$ 147,552	$ 139,268
Charge-offs	7,671	1,041
Recoveries	1,548	1,235
Net charge-offs (recoveries)	6,123	(194)
Provision (recovery of provision)	6,595	3,049
Balance at the end of the period	148,024	142,511
Commercial and agricultural
Changes in allowance for loan and lease losses
Balance at the beginning of the period	17,385	14,635
Charge-offs	7,068	564
Recoveries	86	172
Net charge-offs (recoveries)	6,982	392
Provision (recovery of provision)	6,860	1,844
Balance at the end of the period	17,263	16,087
Renewable energy
Changes in allowance for loan and lease losses
Balance at the beginning of the period	6,610	7,217
Charge-offs	0	0
Recoveries	0	0
Net charge-offs (recoveries)	0	0
Provision (recovery of provision)	248	(929)
Balance at the end of the period	6,858	6,288
Auto and light truck
Changes in allowance for loan and lease losses
Balance at the beginning of the period	16,858	18,634
Charge-offs	1	112
Recoveries	653	541
Net charge-offs (recoveries)	(652)	(429)
Provision (recovery of provision)	74	(505)
Balance at the end of the period	17,584	18,558
Medium and heavy duty truck
Changes in allowance for loan and lease losses
Balance at the beginning of the period	8,965	7,566
Charge-offs	0	0
Recoveries	0	0
Net charge-offs (recoveries)	0	0
Provision (recovery of provision)	(177)	263
Balance at the end of the period	8,788	7,829
Aircraft
Changes in allowance for loan and lease losses
Balance at the beginning of the period	37,653	41,093
Charge-offs	68	0
Recoveries	368	226
Net charge-offs (recoveries)	(300)	(226)
Provision (recovery of provision)	(1,029)	(1,186)
Balance at the end of the period	36,924	40,133
Construction equipment
Changes in allowance for loan and lease losses
Balance at the beginning of the period	26,510	24,039
Charge-offs	292	1
Recoveries	199	0
Net charge-offs (recoveries)	93	1
Provision (recovery of provision)	387	1,541
Balance at the end of the period	26,804	25,579
Commercial real estate
Changes in allowance for loan and lease losses
Balance at the beginning of the period	23,690	17,431
Charge-offs	0	39
Recoveries	181	3
Net charge-offs (recoveries)	(181)	36
Provision (recovery of provision)	(27)	1,905
Balance at the end of the period	23,844	19,300
Residential real estate and home equity
Changes in allowance for loan and lease losses
Balance at the beginning of the period	7,698	6,478
Charge-offs	13	1
Recoveries	8	233
Net charge-offs (recoveries)	5	(232)
Provision (recovery of provision)	115	(89)
Balance at the end of the period	7,808	6,621
Consumer
Changes in allowance for loan and lease losses
Balance at the beginning of the period	2,183	2,175
Charge-offs	229	324
Recoveries	53	60
Net charge-offs (recoveries)	176	264
Provision (recovery of provision)	144	205
Balance at the end of the period	$ 2,151	$ 2,116

Allowance for Credit Losses (_2

Allowance for Credit Losses (Details 2) - Unfunded Loan Commitment - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Allowance for credit losses
Balance, beginning of period	$ 8,182	$ 5,616
Provision	882	1,035
Balance, end of period	$ 9,064	$ 6,651

Lease Investments (Details)

Lease Investments (Details) - USD ($) $ in Thousands	3 Months Ended
Lease Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Interest income on lease receivable	$ 3,439	$ 3,121
Income related to lease payments	1,671	2,503
Depreciation - leased equipment	1,288	2,022
Income from reimbursements for personal property tax payments on operating leased equipment	120	220
Expense for payments of personal property taxes on operating leased equipment	$ 120	$ 220

Mortgage Servicing Rights (Deta

Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Residential mortgage loans
Mortgage Servicing Rights
Unpaid principal balance	$ 795,990	$ 806,050

Mortgage Servicing Rights (De_2

Mortgage Servicing Rights (Details 2) - Residential mortgage loans - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Changes in mortgage servicing assets
Balance at the beginning of the period	$ 3,670	$ 4,137
Additions	88	91
Amortization	(184)	(221)
Carrying value before valuation allowance at end of period	3,574	4,007
Changes in valuation allowance
Balance at the beginning of the period	0	0
Impairment recoveries	0	0
Balance at the end of the period	0	0
Net carrying value of mortgage servicing rights at end of period	3,574	4,007
Fair value of mortgage servicing rights at end of period	8,357	8,053
Fair value of mortgage servicing rights exceeding the carrying value	4,780	4,050
Mortgage loan contractual servicing fees, including late fees and ancillary income	$ 610	$ 660

Commitments and Financial Ins_3

Commitments and Financial Instruments with Off-Balance-Sheet Risk (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Loan commitments to extend credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet instruments	$ 1,455,411	$ 1,454,506
Standby letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet instruments	$ 17,596	17,287
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	$ 2,829	$ 7,047
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	Mar. 31, 2024	Dec. 31, 2023
Non-hedging derivative financial instruments
Derivative Financial Instruments
Notional or contractual amount	$ 1,103,522	$ 1,091,942
Asset derivatives, Fair value	21,694	22,811
Liability derivatives, Fair value	21,944	23,156
Interest rate swap contracts
Derivative Financial Instruments
Asset derivatives, Fair value	21,526	22,704
Interest rate swap contracts \| Non-hedging derivative financial instruments
Derivative Financial Instruments
Notional or contractual amount	1,092,725	1,085,618
Asset derivatives, Fair value	21,526	22,704
Liability derivatives, Fair value	21,936	23,140
Loan commitments \| Non-hedging derivative financial instruments
Derivative Financial Instruments
Notional or contractual amount	5,047	2,824
Asset derivatives, Fair value	168	107
Liability derivatives, Fair value	0	0
Forward contracts - mortgage loan \| Non-hedging derivative financial instruments
Derivative Financial Instruments
Notional or contractual amount	5,750	3,500
Asset derivatives, Fair value	0	0
Liability derivatives, Fair value	$ 8	$ 16

Derivative Financial Instrume_4

Derivative Financial Instruments (Details 2) - Non-hedging derivative financial instruments - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Derivative Financial Instruments
Gain (loss)	$ 282	$ 279
Interest rate swap contracts \| Other expense
Derivative Financial Instruments
Gain (loss)	27	99
Interest rate swap contracts \| Other income
Derivative Financial Instruments
Gain (loss)	186	195
Loan commitments
Derivative Financial Instruments
Gain (loss)	61	25
Forward contracts - mortgage loan
Derivative Financial Instruments
Gain (loss)	$ 8	$ (40)

Derivative Financial Instrume_5

Derivative Financial Instruments (Details 3) - Interest rate swaps - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Offsetting Assets
Asset derivatives, Fair value	$ 21,526	$ 22,704
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Assets Presented in the Statement of Financial Position	21,526	22,704
Derivative Asset, Fair Value, Amount Offset Against Collateral [Abstract]
Financial instruments	0	0
Cash collateral received	16,405	10,795
Net Amount	$ 5,121	$ 11,909

Derivative Financial Instrume_6

Derivative Financial Instruments (Details 4) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Offsetting of financial liabilities and derivative liabilities
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	$ 84,527	$ 78,949
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Liabilities Presented in the Statement of Financial Position	84,527	78,949
Gross amounts Not Offset in the Statement of Financial Position
Financial Instruments	62,591	55,809
Cash Collateral Pledged	0	0
Net Amount	21,936	23,140
Interest rate swaps
Offsetting of financial liabilities and derivative liabilities
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	21,936	23,140
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts of Liabilities Presented in the Statement of Financial Position	21,936	23,140
Derivative, Collateral, Right to Reclaim Securities	0	0
Gross amounts Not Offset in the Statement of Financial Position
Cash Collateral Pledged	0	0
Net Amount	21,936	23,140
Repurchase agreements
Offsetting of financial liabilities and derivative liabilities
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement	62,591	55,809
Net Amounts of Liabilities Presented in the Statement of Financial Position	62,591	55,809
Gross amounts Not Offset in the Statement of Financial Position
Financial Instruments	$ 62,591	$ 55,809

Derivative Financial Instrume_7

Derivative Financial Instruments (Details 5) - U.S. Treasury and Federal agencies securities - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Overnight and Continuous
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Repurchase agreements	$ 61,540	$ 54,460
Up to 30 Days
Transfer of Certain Financial Assets Accounted for as Secured Borrowings
Repurchase agreements	$ 1,050	$ 1,350

Variable Interest Entities (Det

Variable Interest Entities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Subordinated Borrowing [Line Items]
Federal tax credits recognized in tax expense	$ 800	$ 660
Investment tax credits	5,070	$ 17,490
Investment carrying amount	8,667,837		$ 8,727,958
Unfunded capital and other commitments	7,586,288		7,659,695
Maximum exposure to loss, unconsolidated VIEs	66,560		59,649
Variable Interest Entity [Line Items]
Investment carrying amount	8,667,837		8,727,958
Variable interest entity, primary beneficiary
Subordinated Borrowing [Line Items]
Investment carrying amount	79,540		87,370
Unfunded capital and other commitments	0		0
Variable Interest Entity [Line Items]
Investment carrying amount	79,540		87,370
Variable interest entity, not primary beneficiary
Subordinated Borrowing [Line Items]
Investment carrying amount	76,374		79,228
Unfunded capital and other commitments	71,407		80,719
Variable Interest Entity [Line Items]
Investment carrying amount	$ 76,374		$ 79,228

Variable Interest Entities (D_2

Variable Interest Entities (Details 2) $ in Thousands	3 Months Ended
Variable Interest Entities (Details 2) $ in Thousands	Mar. 31, 2024 USD ($) trust	Dec. 31, 2023 USD ($)
Variable Interest Entities [Abstract]
Number of trusts sponsored \| trust	1
Percentage of ownership interest	100%
Subordinated Borrowing [Line Items]
Amount of subordinated notes	$ 58,764	$ 58,764
June 2007 issuance
Subordinated Borrowing [Line Items]
Amount of subordinated notes	$ 41,238
Interest rate (as a percent)	7.22%
Maturity date of subordinated notes	Jun. 15, 2037
August 2007 issuance
Subordinated Borrowing [Line Items]
Amount of subordinated notes	$ 17,526
Interest rate (as a percent)	7.07%
Maturity date of subordinated notes	Sep. 15, 2037
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| August 2007 issuance
Subordinated Borrowing [Line Items]
Basis spread on variable rate (as a percent)	1.48%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Outstanding stock options (in shares)	0	0
Distributed earnings allocated to common stock	$ 8,309	$ 7,892
Undistributed earnings allocated to common stock	20,870	22,977
Net earnings allocated to common stock	29,179	30,869
Net earnings allocated to participating securities	276	255
Net income available to common shareholders	$ 29,455	$ 31,124
Weighted average shares outstanding for basic earnings per common share	24,459,088	24,687,087
Dilutive effect of stock compensation (in shares)	0	0
Weighted average shares outstanding for diluted earnings per common share	24,459,088	24,687,087
Basic earnings per common share (in dollars per share)	$ 1.19	$ 1.25
Diluted earnings per common share (in dollars per share)	$ 1.19	$ 1.25

Stock Based Compensation (Detai

Stock Based Compensation (Details) $ in Thousands	3 Months Ended
Stock Based Compensation (Details) $ in Thousands	Mar. 31, 2024 USD ($) item shares	Mar. 31, 2023 USD ($) shares
Stock-based compensation
Number of stock-based employee compensation plans \| item	4
Number of executive stock award plans \| item	3
Outstanding stock options (in shares)	0	0
Total unrecognized compensation cost related to non-vested share-based compensation arrangements \| $	$ 13,660
Weighted-average period over which unrecognized compensation cost is expected to be recognized	3 years 7 months 9 days
Stock options
Stock-based compensation
Total fair value of options vested and expensed \| $	$ 0	$ 0
Outstanding stock options (in shares)	0	0
Stock options exercised (in shares)	0	0

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Reclassifications out of accumulated other comprehensive income
Losses on investment securities available-for-sale	$ 0	$ (44)
Income tax expense	(8,428)	(9,287)
Unrealized gains and losses on available-for-sale securities \| Amount Reclassified from Accumulated Other Comprehensive Income
Reclassifications out of accumulated other comprehensive income
Losses on investment securities available-for-sale	0	(44)
Income before income taxes	0	(44)
Income tax expense	0	10
Net income	$ 0	$ (34)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Unrecognized tax benefits that would affect the effective tax rate if recognized	$ 0		$ 0
Interest and penalties net of tax recognized	0	$ 0
Accrued interest and penalties	$ 0		$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands		Mar. 31, 2024	Dec. 31, 2023
Fair value measurements
Fair value carrying amount		$ 2,881	$ 1,442
Mortgages held for sale reported at fair value
Fair value measurements
Fair value carrying amount		2,881	1,442
Aggregate unpaid principal		2,606	1,297
Excess of fair value carrying amount over (under) unpaid principal	[1]	$ 275	$ 145

[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	Mar. 31, 2024	Dec. 31, 2023
Fair value measurements
Investment securities available-for-sale	$ 1,583,244	$ 1,622,600
Assets:
Mortgages held for sale	2,881	1,442
U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	902,885	922,866
U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	87,649	92,564
Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	585,137	598,252
Corporate debt securities
Fair value measurements
Investment securities available-for-sale	6,980	8,329
Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	593	589
Total
Fair value measurements
Investment securities available-for-sale	1,583,244	1,622,600
Assets:
Mortgages held for sale	2,881	1,442
Level 1
Fair value measurements
Investment securities available-for-sale	545,675	541,461
Assets:
Mortgages held for sale	0	0
Level 2
Fair value measurements
Investment securities available-for-sale	1,036,525	1,079,978
Assets:
Mortgages held for sale	2,881	1,442
Level 3
Fair value measurements
Investment securities available-for-sale	1,044	1,161
Assets:
Mortgages held for sale	0	0
Recurring basis \| Total
Fair value measurements
Investment securities available-for-sale	1,583,244	1,622,600
Assets:
Mortgages held for sale	2,881	1,442
Accrued income and other assets	21,526	22,704
Total	1,607,651	1,646,746
Liabilities:
Accrued expenses and other liabilities	21,936	23,140
Total	21,936	23,140
Recurring basis \| Total \| U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	902,885	922,866
Recurring basis \| Total \| U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	87,649	92,564
Recurring basis \| Total \| Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	585,137	598,252
Recurring basis \| Total \| Corporate debt securities
Fair value measurements
Investment securities available-for-sale	6,980	8,329
Recurring basis \| Total \| Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	593	589
Recurring basis \| Level 1
Fair value measurements
Investment securities available-for-sale	545,675	541,461
Assets:
Mortgages held for sale	0	0
Accrued income and other assets	0	0
Total	545,675	541,461
Liabilities:
Accrued expenses and other liabilities	0	0
Total	0	0
Recurring basis \| Level 1 \| U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	545,675	541,461
Recurring basis \| Level 1 \| U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	0	0
Recurring basis \| Level 1 \| Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	0	0
Recurring basis \| Level 1 \| Corporate debt securities
Fair value measurements
Investment securities available-for-sale	0	0
Recurring basis \| Level 1 \| Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	0	0
Recurring basis \| Level 2
Fair value measurements
Investment securities available-for-sale	1,036,525	1,079,978
Assets:
Mortgages held for sale	2,881	1,442
Accrued income and other assets	21,526	22,704
Total	1,060,932	1,104,124
Liabilities:
Accrued expenses and other liabilities	21,936	23,140
Total	21,936	23,140
Recurring basis \| Level 2 \| U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	357,210	381,405
Recurring basis \| Level 2 \| U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	86,605	91,403
Recurring basis \| Level 2 \| Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	585,137	598,252
Recurring basis \| Level 2 \| Corporate debt securities
Fair value measurements
Investment securities available-for-sale	6,980	8,329
Recurring basis \| Level 2 \| Foreign government and other securities
Fair value measurements
Investment securities available-for-sale	593	589
Recurring basis \| Level 3
Fair value measurements
Investment securities available-for-sale	1,044	1,161
Assets:
Mortgages held for sale	0	0
Accrued income and other assets	0	0
Total	1,044	1,161
Liabilities:
Accrued expenses and other liabilities	0	0
Total	0	0
Recurring basis \| Level 3 \| U.S. Treasury and Federal agencies securities
Fair value measurements
Investment securities available-for-sale	0	0
Recurring basis \| Level 3 \| U.S. States and political subdivisions securities
Fair value measurements
Investment securities available-for-sale	1,044	1,161
Recurring basis \| Level 3 \| Mortgage-backed securities - Federal agencies
Fair value measurements
Investment securities available-for-sale	0	0
Recurring basis \| Level 3 \| Corporate debt securities
Fair value measurements
Investment securities available-for-sale	0	0
Recurring basis \| 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 ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
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	1,161	1,464
Total gains or losses (realized/unrealized): included in earnings	0	0
Total gains or losses (realized/unrealized): included in other comprehensive income (loss)	63	32
Purchases	0	3,000
Issuances	0	0
Sales	0	0
Settlements	0	0
Maturities	(180)	(175)
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Balance at the end of the period	$ 1,044	$ 4,321

Fair Value Measurements (Deta_4

Fair Value Measurements (Details 4) $ in Thousands	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Valuation Methodology
Investment securities, available-for-sale	$ 1,583,244	$ 1,622,600
Level 3
Valuation Methodology
Investment securities, available-for-sale	1,044	1,161
Recurring \| Level 3
Valuation Methodology
Investment securities, available-for-sale	1,044	1,161
Recurring \| Level 3 \| Discounted cash flows \| Direct placement municipal securities
Valuation Methodology
Investment securities, available-for-sale	$ 1,044	$ 1,161
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)	0.0375	0.0031
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)	0.0448	0.0528
Credit spread assumption \| Recurring \| Level 3 \| Discounted cash flows \| Direct placement municipal securities \| Weighted Average
Unobservable Inputs
Debt securities available-for-sale unobservable inputs (as a percent)	0.0393	0.0428
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	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Impaired loans
Fair value measurements
Impairment charges	$ 6,960
Mortgage servicing rights
Fair value measurements
Impairment recoveries	0
Repossessions
Fair value measurements
Impairment charges	0
Other real estate
Fair value measurements
Impairment charges	0
Total
Fair value measurements
Impaired loans - collateral based	0	$ 6,289
Assets measured at fair value	3,882	10,664
Total \| Mortgage servicing rights
Fair value measurements
Accrued income and other assets	3,574	3,670
Total \| Repossessions
Fair value measurements
Accrued income and other assets	308	705
Total \| Other real estate
Fair value measurements
Accrued income and other assets	0	0
Level 3
Fair value measurements
Impaired loans - collateral based	0	6,289
Assets measured at fair value	3,882	10,664
Level 3 \| Mortgage servicing rights
Fair value measurements
Accrued income and other assets	3,574	3,670
Level 3 \| Repossessions
Fair value measurements
Accrued income and other assets	308	705
Level 3 \| Other real estate
Fair value measurements
Accrued income and other assets	$ 0	$ 0

Fair Value Measurements (Deta_6

Fair Value Measurements (Details 6) - Non-recurring $ in Thousands	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)
Level 3
Valuation Methodology
Assets measured at fair value	$ 3,882	$ 10,664
Carrying Value \| Level 3 \| Collateral based measurements \| Impaired loans
Valuation Methodology
Assets measured at fair value	0	6,289
Carrying Value \| Level 3 \| Discounted cash flows \| Mortgage servicing rights
Valuation Methodology
Assets measured at fair value	3,574	3,670
Carrying Value \| Level 3 \| Appraisals trade publications and auction values \| Repossessions
Valuation Methodology
Assets measured at fair value	308	705
Carrying Value \| Level 3 \| Appraisals \| Other real estate
Valuation Methodology
Assets measured at fair value	0	0
Fair Value
Valuation Methodology
Assets measured at fair value	3,882	10,664
Fair Value \| Level 3 \| Collateral based measurements \| Impaired loans
Valuation Methodology
Assets measured at fair value	0	6,289
Fair Value \| Level 3 \| Discounted cash flows \| Mortgage servicing rights
Valuation Methodology
Assets measured at fair value	8,357	8,151
Fair Value \| Level 3 \| Appraisals trade publications and auction values \| Repossessions
Valuation Methodology
Assets measured at fair value	331	757
Fair Value \| Level 3 \| Appraisals \| Other real estate
Valuation Methodology
Assets measured at fair value	$ 0	$ 0
Discount for lack of marketability and current conditions \| Level 3 \| Collateral based measurements \| Impaired loans \| Minimum
Unobservable Inputs
Impaired loans unobservable inputs (as a percent)	0	0.10
Discount for lack of marketability and current conditions \| Level 3 \| Collateral based measurements \| Impaired loans \| Maximum
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 \| Impaired loans \| Weighted Average
Unobservable Inputs
Impaired loans unobservable inputs (as a percent)	0	0.139
Constant prepayment rate (CPR) \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Minimum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.058	0.061
Constant prepayment rate (CPR) \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Maximum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.172	0.176
Constant prepayment rate (CPR) \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Weighted Average
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.065	0.073
Discount rate \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Minimum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.129	0.110
Discount rate \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Maximum
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.132	0.131
Discount rate \| Level 3 \| Discounted cash flows \| Mortgage servicing rights \| Weighted Average
Unobservable Inputs
Mortgage servicing rights unobservable inputs (as a percent)	0.113	0.112
Discount for lack of marketability \| Level 3 \| Appraisals trade publications and auction values \| Repossessions \| Minimum
Unobservable Inputs
Repossessions unobservable inputs (as a percent)	0	0
Discount for lack of marketability \| Level 3 \| Appraisals trade publications and auction values \| Repossessions \| Maximum
Unobservable Inputs
Repossessions unobservable inputs (as a percent)	0.02	0.10
Discount for lack of marketability \| Level 3 \| Appraisals trade publications and auction values \| Repossessions \| Weighted Average
Unobservable Inputs
Repossessions unobservable inputs (as a percent)	0	0.08
Discount for lack of marketability \| Level 3 \| Appraisals \| Other real estate \| Minimum
Unobservable Inputs
Other Real Estate Owned, Measurement Input	0	0
Discount for lack of marketability \| Level 3 \| Appraisals \| Other real estate \| Maximum
Unobservable Inputs
Other Real Estate Owned, Measurement Input	0	0
Discount for lack of marketability \| Level 3 \| Appraisals \| Other real estate \| Weighted Average
Unobservable Inputs
Other Real Estate Owned, Measurement Input	0	0

Fair Value Measurements (Deta_7

Fair Value Measurements (Details 7) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets:
Cash and due from banks	$ 41,533	$ 77,474
Federal funds sold and interest bearing deposits with other banks	39,381	52,194
Investment securities available-for-sale	1,583,244	1,622,600
Other investments	25,075	25,075
Mortgages held for sale	2,881	1,442
Loans and leases, net of allowance for loan and lease losses	6,414,748	6,370,953
Liabilities:
Long-term debt and mandatorily redeemable securities	39,406	47,911
Subordinated notes	58,764	58,764
Carrying or Contract Value
Assets:
Cash and due from banks	41,533	77,474
Federal funds sold and interest bearing deposits with other banks	39,381	52,194
Investment securities available-for-sale	1,583,244	1,622,600
Other investments	25,075	25,075
Mortgages held for sale	2,881	1,442
Loans and leases, net of allowance for loan and lease losses	6,414,748	6,370,953
Mortgage servicing rights	3,574	3,670
Accrued interest receivable	30,685	30,232
Interest rate swaps	21,526	22,704
Liabilities:
Deposits	7,055,311	7,038,581
Short-term borrowings	249,580	312,359
Long-term debt and mandatorily redeemable securities	39,406	47,911
Subordinated notes	58,764	58,764
Accrued interest payable	32,216	29,520
Interest rate swaps	21,936	23,140
Off-balance-sheet instruments	0	0
Fair Value
Assets:
Cash and due from banks	41,533	77,474
Federal funds sold and interest bearing deposits with other banks	39,381	52,194
Investment securities available-for-sale	1,583,244	1,622,600
Other investments	25,075	25,075
Mortgages held for sale	2,881	1,442
Loans and leases, net of allowance for loan and lease losses	6,224,374	6,204,791
Mortgage servicing rights	8,357	8,151
Accrued interest receivable	30,685	30,232
Interest rate swaps	21,526	22,704
Liabilities:
Deposits	7,048,994	7,033,549
Short-term borrowings	249,580	312,359
Long-term debt and mandatorily redeemable securities	38,709	47,098
Subordinated notes	55,494	55,842
Accrued interest payable	32,216	29,520
Interest rate swaps	21,936	23,140
Off-balance-sheet instruments	118	120
Level 1
Assets:
Cash and due from banks	41,533	77,474
Federal funds sold and interest bearing deposits with other banks	39,381	52,194
Investment securities available-for-sale	545,675	541,461
Other investments	25,075	25,075
Mortgages held for sale	0	0
Loans and leases, net of allowance for loan and lease losses	0	0
Mortgage servicing rights	0	0
Accrued interest receivable	0	0
Interest rate swaps	0	0
Liabilities:
Deposits	5,253,650	5,299,896
Short-term borrowings	83,534	56,013
Long-term debt and mandatorily redeemable securities	0	0
Subordinated notes	0	0
Accrued interest payable	0	0
Interest rate swaps	0	0
Off-balance-sheet instruments	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	1,036,525	1,079,978
Other investments	0	0
Mortgages held for sale	2,881	1,442
Loans and leases, net of allowance for loan and lease losses	0	0
Mortgage servicing rights	0	0
Accrued interest receivable	30,685	30,232
Interest rate swaps	21,526	22,704
Liabilities:
Deposits	1,795,344	1,733,653
Short-term borrowings	166,046	256,346
Long-term debt and mandatorily redeemable securities	38,709	47,098
Subordinated notes	55,494	55,842
Accrued interest payable	32,216	29,520
Interest rate swaps	21,936	23,140
Off-balance-sheet instruments	118	120
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	1,044	1,161
Other investments	0	0
Mortgages held for sale	0	0
Loans and leases, net of allowance for loan and lease losses	6,224,374	6,204,791
Mortgage servicing rights	8,357	8,151
Accrued 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
Accrued interest payable	0	0
Interest rate swaps	0	0
Off-balance-sheet instruments	$ 0	$ 0